Document:

<PAGE>

                                                  Amend. 8 to 5-3: Exhibit 10.79

                            A LETTER OF COOPERATION

PARTY A: P-COM Inc. (hereinafter referred to Party A)
PARTY B: China PTIC (hereinafter referred to Party B)

Party A masters the most advanced technology, LMDS. P-Com's wireless broadband
access system is a world leading technology, which has been widely used in
America, Europe and Asian-Pacific regions. Party B is a corporation under the
leadership of MII. Party B has a good relationship with China Unicom, China
Telecom, China Mobile, etc.. In order to develop the market in China, Party A
and Party B, adhering to the principle of cooperation and mutual benefit, reach
the following Agreement.

I      The obligations of Party A
   1.  Party A shall appoint the Joint Venture Company, co-established by the
       two parties, as a preferred Chinese partner of Party A's in China. P-com
       promises not to cooperate with other Chinese companies outside PTIC.
       Party A and Party B agree to explore jointly the addition of Lucent
       Technologies to the partnership to be able to provide potential
       customers with a broader network solution. The Joint Venture Company
       shall, under the coordination and supervision of P-Com Beijing Office,
       take charge of all the business of sales and services in China.
   2.  Party A shall provide the Joint Venture Company, co-established by the
       two parties, with technical training and technical support. Party A
       shall also provide technical supervision to the Joint Venture Company.
   3.  Party A shall launch large scale marketing propaganda to enlarge P-Com
       Product fame in China.
   4.  Party A guarantees super quality and deliver in time.
   5.  Party A shall provide the Joint Venture Company, co-established by the
       two parties, with the best-discounted price of P-Com's product in the
       world.

II     The obligations of Party B
   1.  Party B shall purchase Party A's product as stock for sales use of the
       Joint Venture Company.
       From July 1, 2000 to July 1, 2001, Party B shall buy Party A's product in
       the no less than US $20,000,000.
       From July 1, 2001 to July 1, 2002, Party B shall buy Party A's product in
       the no less than US $40,000,000.
       From July 1, 2002 to July 1, 2003, Party B shall buy Party A's product in
       the no less than US $60,000,000.
   2.  Party B shall develop the market in China and provide users with best
       post sales services including installation, commissioning and other
       engineering support. Party B shall keep a good reputation for P-Com in
       China.

III.   The Joint Venture Company, co-established by the two parties, shall be
       established on or before July 30.

IV.    All issues not discussed in the Agreement hereto shall be settled
       amicably by negotiation.

V.     This Agreement shall be in quadruple in Chinese and English.  Each Party
       shall hold two copies of each language version.

    Party A: P-Com Inc.                            Party B: China PTIC

    Representative:                                Representative:

    /s/ James J. Sobczak                           /s/ Mr. Lu Junhai

    July 12, 2000                                  July 12, 2000Exhibit 10.1

                                SEVENTH AMENDMENT

                  SEVENTH   AMENDMENT,   dated  as  of  August 18,  2000  (this
"Amendment"),  to the Credit and Guarantee  Agreement,  dated as of May 23, 1996
(as amended,  supplemented or otherwise  modified from time to time, the "Credit
Agreement"), among:

     (a)  REMINGTON  PRODUCTS  COMPANY,  L.L.C.,  a Delaware  limited  liability
          company (the "Company");

     (b)  REMINGTON  CONSUMER  PRODUCTS  LIMITED,  a  corporation  organized and
          existing under the laws of the United Kingdom (the "UK Borrower");

     (c) each Acquisition  Subsidiary from time to time party thereto  (together
         with the Company and the UK Borrower, the "Borrowers");

     (d) the Lenders from time to time parties to the  Agreement  including  the
         Issuing Bank;

     (e) FLEET NATIONAL BANK and BANQUE NATIONALE DE PARIS, as  Co-Documentation
         Agents (in such capacity, the "Co-Documentation  Agents"); and

     (f) THE CHASE  MANHATTAN BANK (formerly known as CHEMICAL BANK), a New York
         banking  corporation,  as administrative  agent (in such capacity,  the
         "Agent") for the Lenders hereunder.

                              W I T N E S S E T H :
                              --------------------

                  WHEREAS, the Borrowers, the Lenders and the Agent are parties
to the Credit Agreement;

                  WHEREAS,  the Borrowers  have requested that the Agent and the
Lenders agree to amend certain  provisions of the Credit Agreement in accordance
with the terms hereof;

                  WHEREAS,  the Agent and the  Lenders are willing to amend such
provisions of the Credit  Agreement,  but only upon the terms and subject to the
conditions set forth herein;

                  NOW  THEREFORE,  in  consideration  of the premises  contained
herein, the parties hereto agree as follows:

                  1. Defined Terms. Unless otherwise defined herein,
capitalized terms which are used herein shall have the meanings assigned thereto
in the Credit Agreement.

                  2.  Amendment of Credit  Agreement.  (a) The Credit  Agreement
(other than  Schedules  and  Exhibits  thereto)  hereby is amended to effect the
changes  contained  in Annex I hereto,  such that (after  giving  effect to this
Amendment) the Credit Agreement (other than Schedules and Exhibits thereto) will
have the terms and conditions reflected in Annex I hereto.

                  (b)  The  Credit   Agreement  hereby  is  further  amended  by
inserting therein as new Exhibit A-5C Annex II hereto.

                  (c) The Credit Agreement hereby is further amended by
inserting  therein as new Exhibits I-1 and I-2 Annex III hereto.

                                       1
<PAGE>

                   (d)  The  Credit  Agreement  hereby  is  further  amended  by
inserting therein as new Schedules I and II Annex IV hereto.

                  3. Representation and Warranty.  Each of the Company,  each of
its Affiliates who is a party hereto and each of its Subsidiaries who is a party
hereto (each, a "Credit Party") hereby  represents and warrants to the Agent and
the Lenders that (a) the Security  Documents and Guarantees to which such Credit
Party  is a  party  are in  full  force  and  effect  immediately  prior  to the
effectiveness  of this Amendment and shall remain in full force and effect after
giving  effect  hereto  and  thereto  and (b)  each of the  representations  and
warranties  contained  in each  Security  Document  and  Guarantee to which such
Credit Party is a party is true and correct in all material respects on the date
hereof.

                  4. Conditions to Effectiveness. This Amendment shall become
effective on the date (such date, the "Amendment Closing Date") upon which
the Agent receives:

 (a)     counterparts  hereof,  executed  and  delivered  by a duly  authorized
         officer of each Borrower, each Incremental Lender and the Required
         Lenders;

 (b)     an amendment fee, for the ratable  account of the Lenders which execute
         and  deliver  this  Amendment  on or prior to 12:00 Noon (New York City
         time) on August 18, 2000 (or such later date as the Agent and
         the  Borrower  shall  agree),  in the amount  equal to 1/8 of 1% of the
         amount of the Domestic Revolving Credit Commitments then in effect, the
         UK Revolving  Credit  Commitments then in effect and the aggregate then
         outstanding  principal  amount of the Domestic Term Loans,  the UK Term
         Loans and the Secured Supplemental Loans;

(c)      the Lenders shall have  received  interim  financial  statements of the
         Company for each fiscal  quarterly  period ended subsequent to the date
         of the last  financial  statements  delivered  prior to the date hereof
         under the Credit Agreement and for the months of July and August.

(d)      a  favorable  written  opinion,   in  form  and  substance   reasonably
         satisfactory  to the Agent,  of (i)  counsel to the Company and each of
         its   Domestic   Subsidiaries,   in  form  and   substance   reasonably
         satisfactory  to the  Agent and (ii) such  local  counsel  as the Agent
         reasonably  shall  require.  Each such legal opinion shall be (x) dated
         the Amendment Closing Date, (y) addressed to the Agent and the Lenders,
         and (z) covering such matters  relating to this  Amendment as the Agent
         reasonably shall require.

                  5.  Representations  and  Warranties.   The  Borrowers  hereby
confirm,  reaffirm and restate the  representations  and warranties set forth in
Section 11 of the Credit  Agreement;  provided that each reference to the Credit
Agreement  therein  shall be deemed to be a  reference  to the Credit  Agreement
after giving effect to this Amendment.  The Borrowers represent and warrant that
no Default or Event of Default has occurred and is continuing.

                  6. Continuing Effect of Credit Agreement. This Amendment shall
not  constitute  a waiver or  amendment  of any other  provision  of the  Credit
Agreement not expressly referred to herein or a waiver or amendment of any other
agreement  (including the voting agreement in the Sixth  Amendment,  dated as of
June 9, 1999) and shall not be  construed  as a waiver or consent to any further
or  future  action  on the part of a  Borrower  that  would  require a waiver or
consent of the Agent or the Lenders.  Except as expressly  amended  hereby,  the
provisions  of the  Credit  Agreement  are and shall  remain  in full  force and
effect.

                  7. Counterparts.  This Amendment may be executed by the
parties hereto in any number of counterparts, and all of such counterparts
taken together shall be deemed to constitute one and the same instrument.

                                       2
<PAGE>

                  8.  GOVERNING LAW.  THIS AMENDMENT SHALL BE GOVERNED BY, AND
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

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

REMINGTON PRODUCTS COMPANY, L.L.C.

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

REMINGTON CONSUMER PRODUCTS LIMITED

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

THE CHASE MANHATTAN BANK, as Administrative Agent and as a Lender

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

BNP PARIBAS (formerly known as BANQUE NAIONALE DE PARIS), as a Co-Documentation
Agent and as a Lender

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

FLEET NATIONAL BANK, as a Co-Documentation Agent and as a Lender

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

FARALLON ABL DEBT INVESTORS I, LLC
By:  FARALLON CAPITAL MANAGEMENT, L.L.C., its Manager

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

FIRST UNION NATIONAL BANK (as successor by merger to CORESTATES BANK, N.A. and
formerly known as FIRST UNION BANK OF CONNECTICUT)

By:___________________________________________

Title:

HELLER FINANCIAL, INC.

By:___________________________________________

Title:

IBJ WHIREHALL BUSINESS CREDIT CORPORATION

By:___________________________________________

Title:

PEOPLE'S BANK

By:___________________________________________

Title:

                                       3
<PAGE>

PNC BANK, NATIONAL ASSOCIATION

By:___________________________________________

Title:

SOVEREIGN BANK

By:__________________________________________
Title

THE PROVIDENT BANK

By:__________________________________________

Title:

                                       4
<PAGE>

                           ACKNOWLEDGMENT AND CONSENT

Each of the undersigned  hereby  acknowledges  and consents to the execution and
delivery by the Company of this Amendment and the other  documents,  instruments
and agreements  contemplated  hereby. Each of the undersigned hereby further (a)
acknowledges and agrees that all guarantees and collateral  security provided by
the undersigned shall remain in full force and effect after giving effect to the
terms of this Amendment and such other documents, instruments and agreements and
(b) confirms  that  "Obligations"  for purposes of each  Guarantee  and Security
Document shall include the  obligations  and  liabilities of the Borrowers under
and in respect of the Incremental Loans and under any Lender Hedging Agreement.

VESTAR EQUITY PARTNERS, L.P.

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

VESTAR SHAVER CORP.

By:____________________________
Title:

VESTAR RAZOR CORP.

By:____________________________
Title:

RPI CORP.

By:____________________________
Title:

REMINGTON RAND CORPORATION

By:________________________________
Title:

REMINGTON CORPORATION, L.L.C.

By:_________________________________
Title:

REMINGTON CAPITAL CORP.

By:________________________________
Title:

                                       5
<PAGE>

                                    ANNEX II
                                       to
                                Seventh Amendment

                                                       EXHIBIT A-5C to
                                                       Credit Agreement

                                     Form of
                                INCREMENTAL NOTE
                                                        New York, New York
   [$][,]                                                August 18, 2000
 -------------------

     FOR VALUE RECEIVED, the undersigned, [REMINGTON PRODUCTS COMPANY, L.L.C., a
Delaware limited liability company (the "Company")][REMINGTON  CONSUMER PRODUCTS
LIMITED,  a  corporation  organized  and  existing  under the laws of the United
Kingdom (the "U.K. Borrower")] , hereby  unconditionally  promises to pay to the
order of (the "Lender") at the office of The Chase Manhattan Bank (the "Agent"),
located at 270 Park  Avenue,  New York,  New York 10017,  in lawful money of the
United  States of America and in  immediately  available  funds,  the  principal
amount of [DOLLARS  ($  )][POUNDS  STERLING  ((pound)_____)],  or, if less,  the
unpaid principal amount of the Incremental  Loans made by the Lender pursuant to
subsection 3A.1 of the Credit and Guarantee Agreement,  dated as of May 23, 1996
(as amended, supplemented or otherwise modified, the "Credit Agreement"),  among
the [U.K.  Borrower][Company],  [Remington  Products Company,  L.L.C.][Remington
Consumer Products  Limited],  the Lender,  the several banks and other financial
institutions  from time to time parties thereto,  Fleet National Bank and Banque
Nationale de Paris, as  co-documentation  agents,  and the Agent.  The principal
amount  shall be due and  paid in the  amounts  and on the  dates  specified  in
subsection  3A.3 of the  Credit  Agreement.  The  [Company][UK  Borrower]further
agrees to pay  interest  in like  money on the  unpaid  principal  amount of the
Incremental  [Dollar][Sterling] Loan from time to time outstanding from the date
hereof until  payment in full thereof at the rates per annum,  and on the dates,
set forth in subsections 10.3 and 10.5 of the Credit Agreement.

     The holder of this Note is authorized  to record on the  schedules  annexed
hereto  and made a part  hereof  or on a  continuation  thereof  which  shall be
attached  hereto  and  made a part  hereof  the  date,  Type and  amount  of the
Incremental  [Dollar][Sterling]Loan  made by the Lender  pursuant to such Credit
Agreement  and the date and amount of each  payment or  prepayment  of principal
thereof,  each continuation thereof, each conversion of all or a portion thereof
to  another  Type  and,  in the case of  Eurodollar  Loans,  the  length of each
Interest Period and the applicable  Eurodollar Rate with respect  thereto.  Each
such  recordation  shall  constitute prima facie evidence of the accuracy of the
information so recorded,  provided that the failure to make any such recordation
or any error in any such  recordation  shall not affect the  obligations  of the
[Company][UK Borrower] under such Credit Agreement or this Note.

                  This Note is (a) one of the  Incremental  Notes referred to in
the Credit Agreement,  (b) subject to the provisions of the Credit Agreement and
(c) subject to optional and mandatory prepayment in whole or in part as provided
in the Credit Agreement.  This Note is secured and guaranteed as provided in the
Loan Documents. Reference is hereby made to the Loan Documents for a description
of the properties and assets in which a security interest has been granted,  the
nature and extent of the security and the  guarantees,  the terms and conditions
upon which the security interests and each guarantee were granted and the rights
of the holder of this Note in respect thereof.

                  Upon  the  occurrence  of any one or more  Events  of  Default
specified in the Credit  Agreement,  all amounts then  remaining  unpaid on this
Note shall become, or may be declared to be, immediately due and payable, all as
provided in the Credit Agreement.

                  All parties  now and  hereafter  liable  with  respect to this
Note, whether maker, principal, surety, guarantor, endorser or otherwise, hereby
waive presentment, demand, protest and all other notices of any kind.

                  Unless otherwise  defined herein,  terms defined in the Credit
Agreement  and used herein shall have the  meanings  given to them in the Credit
Agreement.

                  THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED AND  INTERPRETED
IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

[REMINGTON PRODUCTS COMPANY, L.L.C.]
[REMINGTON CONSUMER PRODUCTS LIMITED]

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

                                       6
<PAGE>

                                     ANNEX I

                       REMINGTON PRODUCTS COMPANY, L.L.C.
                       REMINGTON CONSUMER PRODUCTS LIMITED

                         CREDIT AND GUARANTEE AGREEMENT

                                  May 23, 1996
                      (as amended through August 18, 2000)

                               FLEET NATIONAL BANK
                                       and
                           BANQUE NATIONALE DE PARIS,
                           AS CO-DOCUMENTATION AGENTS,

                            THE CHASE MANHATTAN BANK,
                             AS ADMINISTRATIVE AGENT

                                TABLE OF CONTENTS

                                                                           Page

SECTION 1.  DEFINITIONS......................................................1
         1.1       Defined Terms.............................................1
                   -------------
         1.2       Other Definitional Provisions.............................44
                   -----------------------------

SECTION 2.  THE DOMESTIC TERM LOANS..........................................45
         2.1       Domestic Term Loans.......................................45
                   -------------------
         2.2       Procedure for Domestic Term Loan Borrowing................45
                   ------------------------------------------
         2.3       Amortization of Domestic Term Loans.......................45
                   -----------------------------------
         2.4       Evidence of Debt..........................................46
                   ----------------
         2.5       Use of Proceeds of Domestic Term Loans....................47
                   --------------------------------------

SECTION 3.  THE DOMESTIC REVOLVING CREDIT LOANS..............................47
         3.1       Domestic Revolving Credit Loans...........................47
                   -------------------------------
         3.2       Procedure for Domestic Revolving Credit Loan Borrowing....47
                   ------------------------------------------------------
         3.3       Repayment of Domestic Revolving Credit Loans..............48
                   --------------------------------------------
         3.4       Evidence of Debt..........................................48
                   ----------------
         3.5       Use of Proceeds of Domestic Revolving Credit Loans........49
                   --------------------------------------------------

SECTION  3A. THE INCREMENTAL LOANS...........................................49
         3A.1      Incremental Loans.........................................49
                   -----------------
         3A.2      Procedure for Incremental Loan Borrowing..................50
                   ----------------------------------------
         3A.3      Repayment of Incremental Loans............................51
                   ------------------------------
         3A.4      Evidence of Debt..........................................51
                   ----------------
         3A.5      Use of Proceeds of Incremental Loans......................52
                   ------------------------------------

SECTION 4.  LETTER OF CREDIT SUB-FACILITY....................................52
         4.2       Procedure for Issuance of Letters of Credit under this
                   Agreement.................................................53
                   -------------------------------------------------------------
         4.3       Fees, Commissions and Other Charges.......................53
                   -----------------------------------
         4.4       L/C Participations........................................54
                   ------------------
         4.5       Reimbursement Obligation..................................55
                   ------------------------
         4.6       Obligations Absolute......................................56
                   --------------------
         4.7       Letter of Credit Payments.................................56
                   -------------------------
         4.8       Application...............................................57
                   -----------

SECTION 5.  AMOUNT AND TERMS OF DOMESTIC SWING LINE SUB-FACILITY.............57
         5.1       Domestic Swing Line Commitments...........................57
                   -------------------------------
         5.2       Participations............................................59
                   --------------
         5.3       Use of Proceeds of Domestic Swing Line Loans..............59
                   --------------------------------------------

SECTION 6.  THE UK TERM LOANS................................................59
         6.1       UK Term Loans.............................................59
                   -------------
         6.2       Procedure for UK Term Loan Borrowing......................60
                   ------------------------------------

         6.3       Amortization of UK Term Loans.............................60
                   -----------------------------
         6.4       Evidence of Debt..........................................61
                   ----------------
         6.5       Use of Proceeds of UK Term Loans..........................61
                   --------------------------------

SECTION 7.  THE UK REVOLVING CREDIT LOANS....................................61
         7.1       UK Revolving Credit Loans.................................62
                   -------------------------
         7.2       Procedure for UK Revolving Credit Loan Borrowing..........62
                  ------------------------------------------------
         7.3       Repayment of UK Revolving Credit Loans....................63
                   --------------------------------------
         7.4       Evidence of Debt..........................................63
                   ----------------
         7.5       Use of Proceeds of UK Revolving Credit Loans..............63
                   --------------------------------------------

SECTION 8.  AMOUNT AND TERMS OF UK SWING LINE SUB-FACILITY...................64
         8.1       UK Swing Line Commitments.................................64
                   -------------------------
         8.2       Participations............................................66
                   --------------
         8.3       Use of Proceeds of UK Swing Line Loans....................66
                   --------------------------------------

SECTION 9.  THE SUPPLEMENTAL LOANS...........................................66
         9.1       Supplemental Loans........................................66
                   ------------------
         9.2       Procedure for Supplemental Loan Borrowing.................67
                   -----------------------------------------
         9.3       Repayment of Supplemental Loans...........................67
                   -------------------------------
         9.4       Evidence of Debt..........................................67
                   ----------------
         9.5       Use of Proceeds of Supplemental Loans.....................68
                   -------------------------------------
         9.6       Collateral for Supplemental Loans.........................68
                   ---------------------------------

SECTION  10. CERTAIN PROVISIONS APPLICABLE TO THE LOANS AND LETTERS OF CREDIT69
         10.1      Termination or Reduction of Commitments...................69
                   ---------------------------------------
         10.2      Optional and Mandatory Prepayments........................69
                   ----------------------------------
         10.3      Conversion and Continuation Options.......................71
                   -----------------------------------
         10.4      Minimum Amounts of Tranches...............................72
                   ---------------------------
         10.5      Interest Rates and Payment Dates for Loans................72
                   ------------------------------------------
         10.6      Inability to Determine Interest Rate......................73
                   ------------------------------------
         10.7      Commitment Fee; Other Fees................................73
                   --------------------------
         10.8      Computation of Interest and Fees..........................74
                   --------------------------------
         10.9      Pro Rata Treatment and Payments...........................75
                   -------------------------------
         10.10     Illegality................................................76
                   ----------
         10.11     Requirements of Law.......................................77
                   -------------------
         10.12     Taxes.....................................................79
                   -----
         10.13     Indemnity.................................................80
                   ---------
         10.14     Determinations............................................81
                   --------------
         10.15     Lock Box Accounts.........................................81
                   --------------

SECTION 11.  REPRESENTATIONS AND WARRANTIES..................................81
         11.1  Organization; Powers..........................................81
               --------------------
         11.2  Authorization.................................................82
               -------------
         11.3  Enforceability................................................82
               --------------
         11.4  Approvals.....................................................82
               ---------
         11.5  Financial Statements..........................................83
               --------------------

         11.6  No Material Adverse Change....................................84
               --------------------------
         11.7  Title to Properties; Possession Under Leases..................84
               --------------------------------------------
         11.8  Subsidiaries..................................................84
               ------------
         11.9  Litigation; Compliance with Laws..............................84
               --------------------------------
         11.10  Agreements...................................................85
                ----------
         11.11  Federal Reserve Regulations..................................85
                ---------------------------
         11.12  Investment Company Act; Public Utility Holding Company Act...85
                ----------------------------------------------------------
         11.13  Tax Returns..................................................86
                -----------
         11.14  No Material Misstatements....................................86
                -------------------------
         11.15  Employee Benefit Plans.......................................86
                ----------------------
         11.16  Environmental Matters........................................87
                ---------------------
         11.17  Insurance....................................................88
                ---------
         11.18  Solvency.....................................................88
                --------
         11.19  Labor Matters................................................88
                -------------
         11.20  Capitalization...............................................88
                --------------
         11.21  Security Documents...........................................89
                ------------------
         11.22  Location of Real Property and Leased Premises................90
                ---------------------------------------------
         11.23  Recapitalization.............................................90
                ----------------
         11.24  Regulation H.................................................90
                ------------

SECTION 12.  CONDITIONS PRECEDENT............................................90
         12.1  Each Extension of Credit......................................90
               ------------------------
         12.2  Initial Extensions of Credit..................................91
               ----------------------------

SECTION 13.  AFFIRMATIVE COVENANTS...........................................95
         13.1  Existence; Businesses and Properties..........................96
               ------------------------------------
         13.2  Insurance.....................................................96
               ---------
         13.3  Obligations and Taxes.........................................97
               ---------------------
         13.4  Financial Statements, Reports, etc............................97
               -----------------------------------
         13.5  Litigation and Other Notices..................................101
               ----------------------------
         13.6  ERISA.........................................................101
               -----
         13.7  Maintaining Records; Access to Properties and Inspections.....102
               ---------------------------------------------------------
         13.8  Use of Proceeds...............................................102
               ---------------
         13.9  Compliance with Environmental Laws............................102
               ----------------------------------
         13.10  Preparation of Environmental Reports.........................102
                ------------------------------------
         13.11  Further Assurances...........................................103
                ------------------
         13.12  Additional Guarantees........................................103
                ---------------------
         13.13  Additional Stock Pledges.....................................103
                ------------------------
         13.14  Additional Security Agreements...............................104
                ------------------------------
         13.15  Rate Protection Agreements...................................105
                --------------------------
         13.16  Material Contracts...........................................105
                ------------------
         13.17  Surveys and Zoning...........................................105
                ------------------
         13.18  Cash Management System.......................................105
                ----------------------
         13.19  Patents, Trademarks and Copyrights...........................105
                ----------------------------------
         13.20  Covenants of Other Borrowers.................................106
                ----------------------------

SECTION 14.  NEGATIVE COVENANTS..............................................106
         14.1  Indebtedness..................................................106
               ------------
         14.2  Liens.........................................................108
               -----

         14.3  Limitation on Guarantee Obligations...........................109
               -----------------------------------
         14.4  Sale and Leaseback Transactions...............................110
               -------------------------------
         14.5  Investments, Loans and Advances...............................110
               -------------------------------
         14.6  Mergers, Consolidations and Sales of Assets...................111
               -------------------------------------------
         14.7  Dividends and Distributions...................................113
               ---------------------------
         14.8  Transactions with Affiliates..................................113
               ----------------------------
         14.9  Business of Company and Subsidiaries..........................114
               ------------------------------------
         14.10 Limitations on Certain Debt Payments and Interest Payments....114
               ----------------------------------------------------------
         14.11  Amendment of Certain Documents; Certain Agreements...........114
                --------------------------------------------------
         14.12  Limitation on Capital Lease Obligations......................115
                ---------------------------------------
         14.13  Capital Expenditures.........................................115
                --------------------
         14.14  Fixed Charge Coverage Ratio..................................115
                ---------------------------
         14.15  Interest Expense Coverage Ratio..............................115
                -------------------------------
         14.16(a) Leverage Ratio.............................................116
                  --------------
         14.16(b)  Senior Leverage Ratio.....................................116
                   ---------------------
         14.17  Landlord Lien Waivers........................................117
                ---------------------
         14.18  Limitation on Preferred Equity...............................117
                ------------------------------
         14.19  Matters Relating to Remington Rand Corporation...............117
                ----------------------------------------------
         14.20  Covenants of Other Borrowers.................................117
                ----------------------------
         14.21  Payments in Respect of Accounts..............................117
                -------------------------------
         14.22  Bank Accounts................................................117
                -------------
         14.23  Asset Coverage...............................................118
                --------------
         14.24  Matters Relating to Remington Germany........................118
                -------------------------------------

SECTION 15.  GUARANTEE.......................................................118
         15.1  Guarantee.....................................................118
               ---------
         15.2  Right of Set-Off..............................................119
               ----------------
         15.3  No Subrogation................................................119
               --------------
         15.4  Amendments, etc...............................................120
               ----------------
         15.5  Guarantee Absolute and Unconditional..........................120
               ------------------------------------
         15.6  Reinstatement.................................................121
               -------------
         15.7  Payments......................................................121
               --------

SECTION 16.  EVENTS OF DEFAULT...............................................121

SECTION 17.  THE AGENT.......................................................126
         17.1      Appointment...............................................126
                   -----------
         17.2      Delegation of Duties......................................126
                   --------------------
         17.3      Exculpatory Provisions....................................126
                   ----------------------
         17.4      Reliance by Agent.........................................126
                   -----------------
         17.5      Notice of Default.........................................127
                   -----------------
         17.6      Non-Reliance on Agent and Other Lenders...................127
                   ---------------------------------------
         17.7      Indemnification...........................................128
                   ---------------
         17.8      Agent in Its Individual Capacity..........................128
                   --------------------------------
         17.9      Successor Agent...........................................128
                   ---------------

SECTION 18.  MISCELLANEOUS...................................................129
         18.1      Amendments and Waivers....................................129
                   ----------------------

         18.2      Notices...................................................130
                   -------
         18.3      No Waiver; Cumulative Remedies............................132
                   ------------------------------
         18.4      Survival of Representations and Warranties................132
                   ------------------------------------------
         18.5      Payment of Expenses and Taxes.............................132
                   -----------------------------
         18.6      Successors and Assigns; Participations and Assignments....133
                   ------------------------------------------------------
         18.7  Adjustments; Set-off..........................................135
               --------------------
         18.8  Mortgaged Property Casualty and Condemnation..................137
               --------------------------------------------
         18.9  Matters Relating to Certain Borrowers.........................140
               -------------------------------------
         18.10  Counterparts.................................................141
                ------------
         18.11  Severability.................................................142
                ------------
         18.12  Integration..................................................142
                -----------
         18.13  GOVERNING LAW................................................142
                -------------
         18.14  Submission To Jurisdiction; Waivers..........................142
                -----------------------------------
         18.15  Acknowledgements.............................................143
                ----------------
         18.16  WAIVERS OF JURY TRIAL........................................143
                ---------------------
         18.17  Confidentiality..............................................143
                ---------------

SCHEDULES

Schedule I          Commitments
Schedule II         Addresses for Notices
Schedule III        Indebtedness
Schedule IV         Liens
Schedule V          Title Exceptions and Condemnation Proceedings
Schedule VI         Litigation
Schedule VII        Labor Matters
Schedule VIII       Real Property (Owned and Leased)
Schedule IX         UCC Filing Offices
Schedule X          Insurance
Schedule XI         Subsidiaries
Schedule XII        Local Counsel
Schedule XIII       Shareholders
Schedule XIV        Borrowing Base Materials
Schedule XV         Recapitalization Documents
Schedule XVI        MLA Cost

EXHIBITS

Exhibit A-1         Form of Domestic Term Loan Note
Exhibit A-2         Form of Domestic Revolving Credit Note
Exhibit A-3         Form of UK Term Loan Note
Exhibit A-4         Form of UK Revolving Credit Note
Exhibit A-5A        Form of Unsecured Supplemental Loan Note
Exhibit A-5B        Form of Secured Supplemental Loan Note
Exhibit A-5C        Form of Incremental Note
Exhibit A-6         Form of Domestic Swing Line Note
Exhibit A-7         Form of UK Swing Line Note
Exhibit B           Form of Members Limited Recourse Pledge Agreement
Exhibit C-1         Form of Company Pledge Agreement
Exhibit C-2         Form of Company Security Agreement
Exhibit D-1         Form of Subsidiaries Guarantee
Exhibit D-2         Form of Subsidiaries Pledge Agreement
Exhibit D-3         Form of Subsidiaries Security Agreement
Exhibit D-4         Form of Subsidiaries Trademark Security Agreement
Exhibit D-5         Form of Subsidiaries Patent Security Agreement
Exhibit E           Form of Landlord's Lien Waiver
Exhibit F           INTENTIONALLY OMITTED
Exhibit G           Form of Lock Box Agreement
Exhibit H           Form of Assignment and Acceptance
Exhibit I-1         Form of Domestic Borrowing Base Certificate
Exhibit I-2         Form of UK Borrowing Base Certificate
Exhibit J-1         Form of Domestic Swing Line Loan Participation Certificate
Exhibit J-2         Form of UK Swing Line Loan Participation Certificate

                   CREDIT AND  GUARANTEE  AGREEMENT,  dated as of May 23,  1996,
among:

(a)      REMINGTON PRODUCTS COMPANY, L.L.C., a Delaware limited liability
         company (the "Company");

(b)      REMINGTON  CONSUMER  PRODUCTS  LIMITED,  a  corporation  organized  and
         existing  under  the laws of the  United  Kingdom  (the "UK  Borrower";
         together with the Company, the "Borrowers");

(c)      the Lenders (as hereinafter  defined) from time to time parties to this
         Agreement, including the Issuing Bank;

(d)      FLEET NATIONAL BANK and BANQUE NATIONALE DE PARIS, as Co-Documentation
         Agents (in such capacity, the "Co-Documentation

(e)      THE  CHASE  MANHATTAN  BANK,  a  New  York  banking   corporation,   as
         administrative  agent (in such  capacity,  the "Agent") for the Lenders
         hereunder.

                   The parties hereto hereby agree as follows:

                             SECTION 1. DEFINITIONS

                   1.1 Defined Terms.  As used in this Agreement, the following
terms shall have the following meanings:

                   "ABR":  for any day, a rate per annum  (rounded  upwards,  if
         necessary,  to the next  1/16 of 1%)  equal to the  greater  of (a) the
         Prime Rate in effect on such day and (b) the  Federal  Funds  Effective
         Rate in effect on such day plus 1/2 of 1%.

                   "ABR  Loans":  Loans  denominated  in  Dollars  the  rate  of
         interest applicable to which is based upon the ABR.

                   "Account":  as defined in "Eligible Domestic Accounts" or in
         "Eligible UK Accounts," as the context shall require.

                   "Account Debtor":  with respect to any Account, the obligor
         with respect to such Account.

                   "Adjusted  Domestic  Sterling  Rate":  with  respect  to  any
         Domestic  Sterling Loan for any Interest  Period,  an interest rate per
         annum (rounded upwards, if necessary,  to the next 1/16 of 1%) equal to
         the  product  of (a) the  Domestic  Sterling  Rate in  effect  for such
         Interest Period and (b) MLA Cost.

                   "Adjusted LIBO Rate": with respect to any Eurodollar Loan for
         any Interest Period,  an interest rate per annum (rounded  upwards,  if
         necessary, to the next 1/16 of 1%) equal to the product of (a) the LIBO
         Rate in effect for such Interest Period and (b) Statutory Reserves.

                   "Affiliate": as to any Person, any other Person (other than a
         Subsidiary)  which,  directly  or  indirectly,  is in  control  of,  is
         controlled  by, or is under common  control with,  such Person.  Unless
         otherwise   qualified,   all   references  to  an   "Affiliate"  or  to
         "Affiliates"   in  this  Agreement  shall  refer  to  an  Affiliate  or
         Affiliates of the Company.

                   "Agent":  has the meaning assigned to such term in the
         preamble hereto.

                   "Agreement": this Credit and Guarantee Agreement, as amended,
         supplemented or otherwise modified from time to time.

                   "Applicable  Advance  Rate":  with  respect  to (a)  Eligible
         Domestic  Accounts,  85%  and  (b)  Eligible  Domestic  Inventory,  60%
         (collectively,  the "Basic Advance Rates");  provided that, during each
         period set forth below,  the Basic  Advance Rates shall be increased to
         the  extent  necessary  to  cause  the  Domestic  Borrowing  Base to be
         increased by the amount equal to the "Increase  Amount" set forth below
         opposite such period:

                             Period Increase Amount

                              01/01/99  -  12/15/99             $10,000,000
                              12/16/99  -  03/15/00                      $0
                              03/16/00  -  12/15/00             $10,000,000
                              12/16/00  -  03/15/01                      $0
                              03/16/01  -  06/29/01             $10,000,000
                              Thereafter                                 $0

                  "Applicable Margin": for each Type of Loan, or with respect to
         commitment fees, as applicable,  the rate per annum set forth under the
         relevant column heading below,  based upon the Leverage Ratio in effect
         from time to time as described below:

<TABLE>
<CAPTION>

                                                Eurodollar, Domestic
                                                Sterling and Sterling          ABR             Fee
                                                     Base Rate Loans        Rate Loans      Percentage

            <S>                                         <C>                   <C>             <C>
           Leverage Ratio of greater than               2.75%                 1.50%           0.50%
           or equal to 5.00 to 1.00

           Leverage Ratio of less than 5.00             2.50%                 1.25%           0.50%

                                       2
<PAGE>

           to 1.00 and greater than or
           equal to 4.00 to 1.00

           Leverage Ratio of less than 4.00             2.25%                 1.00%           0.50%
           to 1.00 and greater than or
           equal to 3.50 to 1.00

           Leverage Ratio of less than 3.50             2.00%                 0.75%           0.375%
           to 1.00
</TABLE>

         Notwithstanding the foregoing,  (w) at all times prior to the date upon
         which the Company delivers the financial  statements  required pursuant
         to subsection  13.4(b) for its fiscal  quarter ended June 30, 1996, the
         Company shall be deemed (for purposes of this definition  only) to have
         a Leverage  Ratio of  greater  than 5.00 to 1.00,  (x) the  "Applicable
         Margin" with respect to Secured  Supplemental  Loans shall at all times
         be (i) in the case of  Eurodollar  Loans,  6% per annum and (ii) in the
         case of ABR Rate Loans,  4.75% per annum,  (y) the "Applicable  Margin"
         with respect to the Unsecured  Supplemental Loans shall at all times be
         (i) in the case of Eurodollar  Loans, 1% per annum and (ii) in the case
         of ABR Rate  Loans,  0% per annum and (z) the  "Applicable  Margin with
         respect to  Incremental  Loans shall at all times be (i) in the case of
         Eurodollar Loans, Domestic Sterling Loans and Sterling Base Rate Loans,
         2.75%  per  annum  and (ii) in the case of ABR  Loans,  1.75% per annum
         provided that after  December 31, 2000 the  Applicable  Margin for each
         Incremental  Loan  shall be  increased  by  0.50%.  Any  change  in the
         Applicable  Margin  shall  become  effective on the date which is three
         Business  Days  following  the date of  delivery  by the Company of its
         financial  statements for the relevant fiscal period in accordance with
         the provisions of subsection 13.4(a) or (b), as the case may be.

                  "Application": with respect to any requested Letter of Credit,
         an application, in such form as the relevant Issuing Bank may specify
         from time to time, requesting the Issuing Bank to issue such Letter of
         Credit.

                  "Assignee":  as defined in subsection 18.6(c).

                  "Attributable  Debt":  in  respect  of a  Sale  and  Leaseback
         Transaction,   at  the  time  of   determination,   the  present  value
         (discounted   at  the  actual  rate  of   interest   implicit  in  such
         transaction)  of the  obligation of the lessee for net rental  payments
         during  the  remaining  term of the  lease  included  in such  Sale and
         Leaseback  Transaction  (including  any period for which such lease has
         been extended or may, at the option of the lessor, be extended).

                  "Available  Domestic Revolving Credit  Commitment":  as to any
         Domestic Lender at any time, the amount equal to the excess (if any) of
         (a) the amount of such  Domestic  Lender's  Domestic  Revolving  Credit
         Commitment  then in effect over (b) the amount  equal to the sum of (i)

                                       3
<PAGE>

         the aggregate  principal  amount of Domestic  Revolving Credit Loans of
         such Domestic Lender which are then  outstanding and (ii) such Domestic
         Lender's Commitment Percentage of the L/C Obligations then outstanding.

                  "Available   Incremental   Dollar Credit   Commitment":   as
         to  any Incremental Dollar Lender at any time, the amount equal to the
         excess (if any)of (a) the  amount  of such  Incremental Dollar Lender's
         Incremental  Dollar Credit Commitment  then in effect over (b) the
         amount  equal to the  aggregate principal amount of the Incremental
         Dollar Loans of such  Incremental Dollar Lender which are then
         outstanding.

                 "Available Incremental Dollar Credit Commitment":  as to any
         Incremental Sterling Lender at any time, the amount equal to the excess
         (if any) of (a) the amount of such Incremental Sterling Lender's
         Incremental Sterling Credit Commitment then in effect over (b) the
         amount equal to the aggregate principal amount of the Incremental
         Sterling Loans of such Incremental Sterling Lender which are then
         outstanding.

                  "Available  UK  Revolving  Credit  Commitment":  as to  any UK
         Lender at any time,  the amount equal to the excess (if any) of (a) the
         amount of such UK  Lender's  UK  Revolving  Credit  Commitment  then in
         effect over (b) the amount equal to the aggregate  principal  amount of
         UK Revolving Credit Loans of such UK Lender which are then outstanding.

                  "Board":  the Board of Governors of the Federal Reserve System
        of the United States.

                  "Borrowers":  as defined in the recitals hereto.

                  "Business  Day":  a day  other  than (a) with  respect  to the
         Domestic  Loans,  a Saturday,  Sunday or other day on which  commercial
         banks in New York City are  authorized  or required by law to close and
         (b) with  respect to any  Eurodollar  Loans and the UK Loans,  a day on
         which banks are not open in London,  England or otherwise  for dealings
         in Dollar or Pounds  Sterling  (as  applicable)  deposits in the London
         interbank market.

                  "Capital Expenditures": for any period, the sum of all amounts
         that would,  in  accordance  with GAAP,  be included  as  additions  to
         property,  plant and  equipment  and other  capital  expenditures  on a
         consolidated   statement   of  cash  flows  for  the  Company  and  its
         Subsidiaries for such period.  Notwithstanding the foregoing,  the term
         "Capital  Expenditures"  shall not include (a) capital  expenditures in
         respect of the reinvestment of sales proceeds,  insurance  proceeds and
         condemnation  proceeds  received by the Company and its Subsidiaries in
         connection  with  the  sale,  transfer  or  other  disposition  of  the
         Company's  business units,  assets or properties,  if such reinvestment
         (including, in the case of insurance proceeds, reinvestment in the form
         of restoration or replacement of damaged  property) is not considered a

                                       4
<PAGE>

         "Prepayment  Event" as  contemplated in the definition of such term and
         (b)  capital  expenditures  which,  after  giving  effect to the making
         thereof,  would not cause the  Permitted  Excess Cash Flow Basket to be
         less than zero.

                  "Capital Lease Obligations": of any Person, the obligations of
         such Person to pay rent or other  amounts  under any lease of (or other
         arrangement conveying the right to use) real or personal property, or a
         combination  thereof,  which  obligations are required to be classified
         and accounted  for as capital  leases on a balance sheet of such Person
         under GAAP, and the amount of such obligations shall be the capitalized
         amount thereof determined in accordance with GAAP.

                  "Capital Stock":  any and all shares, interests,
         participations or other equivalents (however designated) of capital
         stock of a corporation, any and all equivalent ownership interests in a
         Person (other than a corporation) and any and all warrants or options
         to purchase any of the foregoing.

                  "Cash Interest  Expense":  for any period,  the gross interest
         expense of the Company and its  Subsidiaries  for such period excluding
         any fees  (other  than the  commitment  fee and all fees,  charges  and
         commissions  relating to the Letters of Credit) and expenses payable or
         amortized  during such period by the  Company and its  Subsidiaries  in
         connection with the Recapitalization less gross cash interest income of
         the Company and its  Subsidiaries  for such  period and  excluding  the
         effects of (i) amortization of debt discounts,  (ii) deferred financing
         fees payable in connection with the  Recapitalization and (iii) imputed
         interest expense on deferred  compensation  arrangements,  in each case
         determined on a consolidated  basis in accordance with GAAP,  excluding
         any interest  expense  accruing during such period and not paid in cash
         during such  period.  For all  purposes  hereunder,  the Cash  Interest
         Expense  of the  Company  and its  Subsidiaries  shall be  deemed to be
         $4,333,333 for each of the fiscal  quarters  ending on each of December
         31, 1995, March 31, 1996 and June 30, 1996.

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

                           (i) the sale,  lease,  transfer,  conveyance or other
                  disposition (other than by way of merger or consolidation), in
                  one  or  a  series  of   related   transactions,   of  all  or
                  substantially  all  of  the  assets  of the  Company  and  its
                  Subsidiaries taken as a whole to any "person" (as such term is
                  used in  Section  13(d)(3)  of the  Exchange  Act of 1934,  as
                  amended), other than Vestar;

                           (ii)  the adoption of a plan relating to the
                  liquidation or dissolution of the Company;

                                       5
<PAGE>

                           (iii) prior to the  consummation of an initial public
                  offering of equity securities of the Company, the consummation
                  of any transaction (including,  without limitation, any merger
                  or  consolidation)  the  result  of which  is that (a)  Vestar
                  ceases to have  sufficient  voting power  (including,  without
                  limitation, by contractual arrangement) to elect a majority of
                  the members of the  Management  Committee or (b) Vestar sells,
                  grants an option to sell,  pledges or  otherwise  disposes  of
                  more than 20% of the amount of its  investment  in the Company
                  as of the Closing Date (other than in connection  with such an
                  initial  public  offering and sales or other  dispositions  of
                  Capital  Stock  that  do  not  result  in  Vestar  ceasing  to
                  beneficially own such Capital Stock);

                           (iv) following the  consummation of an initial public
                  offering  of equity  securities  of the  Company,  the Company
                  becomes  aware  (by way of a report or other  filing  with the
                  Securities  and Exchange  Commission  or  otherwise)  that any
                  "person"  (as used in Section  13(d)(3) of the Exchange Act of
                  1934,  as  amended),   other  than  Vestar,   has  become  the
                  beneficial owner, directly or indirectly, of (a) more than 35%
                  of the voting power of the voting Capital Stock of the Company
                  or (b) more of the voting power of such voting  Capital  Stock
                  than is beneficially owned by Vestar;

                           (v)  the first day on which the Company fails to own
                  100% of the issued and outstanding equity interests in
                  Remington Capital Corp., other than by reason of a merger of
                  Remington Capital Corp. with and into a corporate
                  successor to the Company, or in any such successor; and

                           (vi)  the first day on which more than one-third of
                  the members of the Management Committee are not Continuing
                  Members;

         provided,  however,  that Vestar  shall be deemed to be the  beneficial
         owner of the voting power of voting common stock if (a) Vestar  retains
         the  right  (by  contractual  arrangement  or  otherwise)  to vote such
         Capital  Stock  and (b)  Vestar  beneficially  owns at least 20% of the
         common Equity Interests of the Company  (excluding any equity interests
         which Vestar may be deemed to  beneficially  own solely  because it has
         the contractual right to vote such Capital Stock). For purposes of this
         definition only, the term "Capital Stock" shall mean (w) in the case of
         a corporation,  corporate  stock,  (x) in the case of an association or
         business entity, any and all shares, interests, participations,  rights
         or other  equivalents  (however  designated) of corporate stock, (y) in
         the case of a partnership,  partnership  interests  (whether general or
         limited) and (z) any other interest or participation  that confers on a
         Person  the right to receive a share of the  profits  and losses of, or
         distributions  of assets of, the issuing  Person;  and the term "Equity
         Interests" shall mean Capital Stock and all warrants,  options or other
         rights to acquire  Capital Stock (but  excluding any debt security that
         is convertible into, or exchangeable for, Capital Stock).

                                       6
<PAGE>

                  "Chase":  The Chase Manhattan Bank.

                  "Closing Date":  the date on which the conditions precedent
            set forth in subsection 12.2 shall be satisfied.

                  "Code":  the Internal Revenue Code of 1986, as amended from
            time to time.

                  "Collateral":  all assets of the Company and its Subsidiaries,
            now owned or hereinafter acquired, upon which a Lien is purported
            to be created by any Security Document.

                  "Commercial Letter of Credit":  as defined in subsection
            4.1(b)(i).

                  "Commitment":  as to any Lender, its Domestic Revolving Credit
         Commitment,  its Domestic Term Loan Commitment,  its Incremental Dollar
         Credit Commitment,  its Incremental Sterling Credit  Commitment,  its
         UK  Revolving Credit Commitment,  its  UK Term Loan  Commitment, its
         Secured  Supplemental  Commitment  or its  Unsecured Supplemental
         Commitment,  as the context shall require; collectively, such Lender's
         "Commitments."

                  "Commitment  Percentage":  as to any  Lender at any time,  the
         percentage which the Commitments of such Lender then constitutes of the
         Commitments of all Lenders (or, at any time after the Commitments shall
         have  expired  or  terminated,   the  percentage  which  the  aggregate
         principal  amount  of  such  Lender's  Domestic  Term  Loans,  Domestic
         Revolving Credit Exposure,  Incremental Dollar Credit Exposure,
         Incremental Sterling Credit Exposure, UK Term Loans, UK Revolving
         Credit Exposure,  Secured Supplemental Loans and Unsecured Supplemental
         Loans  then  outstanding  constitutes  of  the  aggregate principal
         amount of the Domestic Term Loans,  Domestic Revolving Credit
         Exposure,  Incremental  Dollar Credit  Exposure, Incremental Sterling
         Credit Exposure,  UK Term Loans, UK Revolving Credit Exposure, Secured
         Supplemental Loans and Unsecured Supplemental Loans then outstanding);
         provided that, with respect to the Commitment of such Lender to provide
         any particular  Loans and/or other extensions of credit,  the term
         "Commitment  Percentage" shall mean the percentage which the
         Commitment of such Lender to provide such Loans and/or other
         extensions of credit then constitutes of the Commitments of all Lenders
         to provide  such Loans and/or  other  extensions  of credit (or, at any
         time  after such  Commitments  shall have  expired or  terminated,  the
         percentage  which  the  aggregate  principal  amount  of such  Lender's
         Domestic Term Loans,  Domestic  Revolving Credit Exposure,  Incremental
         Dollar Credit Exposure, Incremental Sterling Credit Exposure, UK Term
         Loans, UK Revolving Credit Exposure,  Secured Supplemental Loans or
         Unsecured Supplemental Loans, as the case may be, then outstanding
         constitutes of the aggregate  principal amount of the Domestic Term
         Loans,  Domestic  Revolving Credit Exposure,  Incremental Dollar Credit
         Exposure, Incremental Sterling Credit Exposure, UK Term Loans, UK
         Revolving Credit Exposure,  Secured Supplemental Loans or Unsecured

                                       7
<PAGE>

         Supplemental Loans, respectively,  then outstanding).

                  "Commitment Period":  the period from and including the date
         hereof to but not including the Termination Date or such earlier
         date on which the Commitments shall terminate as provided herein.

                  "Commonly  Controlled  Entity":  an  entity,  whether  or  not
         incorporated, which is under common control with the Company within the
         meaning of Section  4001 of ERISA or is part of a group which  includes
         the Company and which is treated as a single employer under Section 414
         of the Code.

                  "Company":  as defined in the preamble.

                  "Company Mortgage":  the Mortgage to be executed and delivered
          by the Company, in form and substance reasonably satisfactory to
          the Agent, as the same may be amended, supplemented or otherwise
          modified from time to time.

                  "Company Pledge Agreement":  the Company Pledge Agreement to
         be executed and delivered by the Company, substantially in the form
         of Exhibit C-1, as the same may be amended, supplemented or otherwise
         modified from time to time.

                   "Company Security Agreement":  the Security Agreement to be
         executed and delivered by the Company, substantially in the form of
         Exhibit C-2, as the same may be amended, supplemented or otherwise
         modified from time to time.

                  "Condemnation  Proceeds"  shall have the  meaning  assigned to
         such term in subsection 18.8(b).

                  "Confidential Information Memorandum":  the Confidential
         Information Memorandum of the Company dated April 1996.

                  "Continuing  Members":  as of any date of  determination,  any
         member  of  the  Management  Committee  who  (i)  was a  member  of the
         Management  Committee  on the date  hereof  or (ii) was  nominated  for
         election to the  Management  Committee  with the approval of at least a
         majority of the  Continuing  Members who were members of the Management
         Committee at the time of such nomination or election.

                  "control":  the  possession,  directly or  indirectly,  of the
         power to direct or cause the direction of the management or policies of
         a Person,  whether  through  the  ownership  of voting  securities,  by
         contract or otherwise,  and the terms  "controlling"  and  "controlled"
         shall have meanings correlative thereto.

                                       8
<PAGE>

                  "Contractual Obligation":  as to any Person, any provision of
         any security issued by such Person or of any agreement, instrument
         or other undertaking to which such Person is a party or by which it or
         any of its property is bound.

                  "Current Assets":  as of any date, the total assets (excluding
         cash and cash equivalents) that would properly be classified as current
         assets of the Company and its  Subsidiaries  as of such date determined
         on a consolidated basis in accordance with GAAP.

                  "Current  Liabilities":  as of any date, the total liabilities
         (excluding  Indebtedness  for  borrowed  money) that would  properly be
         classified as current  liabilities of the Company and its  Subsidiaries
         as of such date  determined on a consolidated  basis in accordance with
         GAAP.

                  "Default":  any of the events specified in Section 16, whether
          or not any requirement for the giving of notice, the lapse of time,
          or both, or any other condition, has been satisfied.

                  "Dollars"  and "$":  dollars in lawful  currency of the United
          States of America.

                  "Domestic Borrowing Base": as of any date of determination, an
         amount  equal to the sum,  without  duplication  of (a) the  Applicable
         Advance Rate of the total of Eligible  Domestic Accounts of the Company
         and  its  Domestic  Subsidiaries  as of such  date  less  the  Domestic
         Dilution Reserve then in effect and (b) the Applicable  Advance Rate of
         the  Eligible  Domestic  Inventory  of the  Company  and  its  Domestic
         Subsidiaries  as of such date. For purposes of determining the Domestic
         Borrowing  Base  from  time to time,  Eligible  Domestic  Accounts  and
         Eligible   Domestic   Inventory   of  the  Company  and  its   Domestic
         Subsidiaries  shall be  determined  from  time to time by the  Agent by
         reference to the Domestic Borrowing Base Certificate then most recently
         delivered  to it;  provided  that  the  information  contained  in such
         Domestic   Borrowing  Base  Certificate  shall  not  be  conclusive  in
         calculating  the amount of  Eligible  Domestic  Accounts  and  Eligible
         Domestic Inventory and, after consultation with the Company,  the Agent
         shall be entitled to adjust the amounts and other information contained
         therein  to the  extent  that  it  believes  in its  reasonable  credit
         judgment that such  adjustment is  appropriate  to reflect (x) the then
         current amounts of Eligible  Domestic  Inventory and Eligible  Domestic
         Accounts or (y) changes in the  business  practices  of the Company and
         its Domestic  Subsidiaries (or newly disclosed  matters with respect to
         them). Notwithstanding the foregoing, the Domestic Borrowing Base shall
         be increased by an amount equal to the Supplemental  Domestic Borrowing
         Base.

                  "Domestic  Borrowing  Base  Certificate":  a  certificate,  in
         substantially  the form  attached  hereto  as  Exhibit  I-1,  with such
         changes as the Agent may from time to time  reasonably  request for the
         purpose of monitoring the Domestic Borrowing Base.

                                       9
<PAGE>

                  "Domestic Dilution  Factors":  with respect to the Company and
         its Domestic  Subsidiaries  at any date,  the  aggregate  Dollar amount
         equal to the sum of (a) any credit  memos,  adjustments,  returns,  and
         allowances (such as for co-op advertising), (b) cash discounts, (c) bad
         debt write-offs, (d) other non-cash credits, in each case applied to an
         Account Debtor's balance in respect of Accounts domiciled in the United
         States.

                  "Domestic  Dilution Ratio": at any date, the amount (expressed
         as a  percentage)  equal to (a) the  aggregate  amount of the  Domestic
         Dilution  Factors for the 12 most recently  ended fiscal months divided
         by (b)  total  gross  credit  sales  of the  Company  and its  Domestic
         Subsidiaries for such 12 fiscal months.

                  "Domestic Dilution  Reserve":  with respect to the Company and
         its  Domestic  Subsidiaries,  at any date  which  occurs (a) during the
         period from March 1st  through  November  30th of any year,  the amount
         equal to the  Domestic  Dilution  Ratio  times the  amount of  Eligible
         Domestic  Accounts  at such date and (b) during any other  period,  the
         amount equal to the sum of (a)  $1,500,000  and (b) the amount equal to
         the  Domestic  Dilution  Ratio  times the amount of  Eligible  Domestic
         Accounts at such date.

                  "Domestic  Lender":  at any date, each bank or other financial
         institution  which holds any Domestic Term Loan  Commitment  (or, after
         the Closing  Date,  Domestic Term Loans) or Domestic  Revolving  Credit
         Loan  Commitment (or, at any time after the Domestic  Revolving  Credit
         Loan Commitment has terminated,  Domestic Revolving Credit Exposure) on
         such date; collectively, the "Domestic Lenders".

                  "Domestic Loan":  a Domestic Revolving Credit Loan or Domestic
         Term Loan, as the context shall require; collectively, the
         "Domestic Loans."

                  "Domestic  Revolving  Credit  Commitment":  as to any Domestic
         Lender,  the  obligation  of such  Domestic  Lender  to  make  Domestic
         Revolving  Credit Loans and to participate in Domestic Swing Line Loans
         made to, and to participate in Letters of Credit issued for the account
         of, the Company hereunder in an aggregate  principal and/or face amount
         at any one time outstanding not to exceed the amount set forth opposite
         such Domestic  Lender's name on Schedule I under the heading  "Domestic
         Revolving Credit Commitments",  as such amount may be reduced from time
         to time in accordance with the provisions of this Agreement.

                  "Domestic  Revolving Credit Exposure":  at any date, (a) as to
         all Domestic  Lenders,  the amount equal to the  aggregate  outstanding
         principal  amount of all Domestic  Revolving Credit Loans, all Domestic
         Swing Line Loans and all L/C Obligations then outstanding and (b) as to
         any Domestic Lender, the amount equal to (i) the aggregate  outstanding
         principal  amount of all  then-outstanding  Domestic  Revolving  Credit
         Loans  made by such  Domestic  Lender and (ii) such  Domestic  Lender's
         Commitment  Percentage  of  the  then-outstanding  aggregate  principal

                                       10
<PAGE>

         amount of all L/C Obligations and Domestic Swing Line Loans.

              "Domestic Revolving Credit Loans": as defined in subsection 3.1.

              "Domestic Revolving Credit Note": as defined in subsection 3.4(d).

              "Domestic Sterling Loan":  any Loan bearing interest based upon a
         Domestic Sterling Rate.

                  "Domestic   Sterling  Rate":  with  respect  to  any  Domestic
         Sterling  Loan for any  Interest  Period,  (a) if at least two  offered
         rates for Pounds  Sterling  deposits  for a period  comparable  to such
         Interest  Period  appear on the  Reuters  Screen  LIBO Page as of 11:00
         a.m.,  London  time,  on the first  day of such  Interest  Period,  the
         arithmetic  mean of all such  offered  rates and (b) if fewer  than two
         such  offered  rates so appear on the  Reuters  Screen  LIBO Page,  the
         arithmetic mean,  determined by the Agent based on quotations  provided
         by each of the Reference Lenders,  of the respective rates per annum at
         which Pounds Sterling  deposits  approximately  equal to each Reference
         Lender's  respective  portion of the applicable  Domestic Sterling Loan
         and for a period  comparable  to the  applicable  Interest  Period  are
         offered to the  principal  London  office of such  Reference  Lender in
         immediately   available  funds  in  the  London   interbank  market  at
         approximately  11:00  a.m.,  London  time,  on the  first  day of  such
         Interest  Period.  The term  "Reuters  Screen LIBO Page" shall mean the
         display  screen  designated  "LIBO Page" on the Reuters  Monitor  Money
         Rates  Service  (or such  other page as may  replace  such page on such
         service for the purpose of displaying comparable rates).

                  "Domestic Subsidiary":  any Subsidiary of the Company
         organized under the laws of any jurisdiction within the United States.

                  "Domestic  Swing Line  Commitment"  of the Domestic Swing Line
         Lender at any date shall mean the obligation of the Domestic Swing Line
         Lender to make Domestic  Swing Line Loans pursuant to subsection 5.1 in
         the amount referred to therein.

                  "Domestic Swing Line Lender" shall mean Chase.

                  "Domestic  Swing Line Loan  Participation  Certificate"  shall
         mean a certificate, substantially in the form of Exhibit J-1.

                  "Domestic Swing Line Loans" shall have the meaning assigned to
such term in subsection 5.1(a).

                  "Domestic Swing Line Note" shall have the meaning  assigned to
such term in subsection 5.1(b).

                                       11
<PAGE>

                  "Domestic Term Loan":  as defined in subsection 2.1.

                  "Domestic Term Loan  Commitment":  as to any Domestic  Lender,
         the  obligation of such Domestic  Lender to make Domestic Term Loans to
         the Company  hereunder on the Closing  Date in an  aggregate  principal
         amount at any one time  outstanding  not to exceed the amount set forth
         opposite  such  Domestic  Lender's name on Schedule I under the heading
         "Domestic  Term Loan  Commitments",  as such amount may be reduced from
         time to time in accordance with the provisions of this Agreement.

                  "Domestic Term Loan Notes":  as defined in subsection 2.4(d).

                  "EBITDA": for any period, without duplication,  the sum of (a)
         Net Income for such period,  (b) all Federal,  state, local and foreign
         income taxes  (including,  in any event, any dividends or distributions
         paid in accordance with the provisions of subsection  14.7(d)) deducted
         in  determining  such Net  Income,  (c)  interest  expense  deducted in
         determining such Net Income,  (d) depreciation,  amortization and other
         non-cash expenses and charges (including any charges resulting from the
         write-up  of  inventory  and other  assets and  including  any  foreign
         currency translation losses resulting from the repayment on the Closing
         Date of loans owing from the UK Borrower  to the  Company)  deducted in
         determining  such  Net  Income  (and  not  already  excluded  from  the
         definition  of the term  "Net  Income")  and (e) fees and  expenses  in
         connection  with the  Recapitalization  which  have  been  deducted  in
         determining  Net Income for such period.  For all  purposes  hereunder,
         EBITDA of the  Company and its  Subsidiaries  shall be deemed to be (x)
         $17,500,000  for the  fiscal  quarter  ended  December  31,  1995,  (y)
         $600,000 for the fiscal quarter ended March 31, 1996 and (z) $7,400,000
         for the fiscal quarter ended June 30, 1996.

                  "Eligible Domestic Accounts":  with respect to the Company and
         its  Domestic  Subsidiaries  at  any  date,  the  amount  equal  to the
         aggregate gross amount of accounts receivable ("Accounts") reflected on
         the  receivable  aging  detail or other  analogous  statement  (without
         reduction for reserves) of the Company or such Domestic Subsidiary,  as
         the case may be, on such date that have been invoiced and represent the
         bona  fide  sale  and  delivery  of  merchandise,  in each  case in the
         ordinary course of business of the Company or such Domestic  Subsidiary
         in connection with its trade operations. Unless otherwise approved from
         time to time in writing by the Agent,  no Account  shall be an Eligible
         Domestic Account if:

                           (a) (i) the  Company  and/or  a  Domestic  Subsidiary
                  thereof  shall not be sole payee with respect to, or otherwise
                  shall not have sole lawful and absolute title to, such Account
                  or (ii) the sale to the  Account  Debtor  giving  rise to such
                  Account   is   on   a    bill-and-hold,    guaranteed    sale,
                  sale-and-return,   ship-and-return,   sale  on   approval   or
                  consignment  or other  similar  basis or made  pursuant to any
                  other written agreement  providing for repurchase or return of
                  any  merchandise  which has been  claimed to be  defective  or

                                       12
<PAGE>

                  otherwise   unsatisfactory   (other   than  for   breaches  of
                  warranties  provided in favor of consumers) or (iii) the goods
                  giving  rise  to  such  Account  have  not  been  shipped  and
                  delivered  to and  accepted  by  the  Account  Debtor,  or the
                  transaction  giving rise to such  Account  otherwise  does not
                  represent a completed sale; or

                           (b)  such Account arises out of a sale made by the
                  Company or any Domestic Subsidiary thereof to an Affiliate; or

                           (c) (i) such Account  (without  giving  effect to any
                  netting for  credits) is unpaid more than 60 days from the due
                  date  thereof  or is  unpaid  for more  than 180 days from the
                  invoice date thereof or (ii) such Account has been written off
                  the books of such person or has been  otherwise  designated as
                  uncollectible  or (iii)  more  than 50% in face  amount of all
                  Accounts of the same Account Debtor and its known  affiliates,
                  taken  together,  are  ineligible  pursuant to clauses (i) and
                  (ii)  above or (iv) a check,  promissory  note,  draft,  trade
                  acceptance or other  instrument  for the payment of money with
                  respect to all or any part of such Account has been  received,
                  presented for payment and returned  uncollected for any reason
                  or (v) the Account  Debtor with  respect to such Account is in
                  the "legal" aging category, is insolvent or the subject of any
                  bankruptcy or insolvency proceeding of any kind; or

                           (d) the  Account  is not  payable  in  Dollars or the
                  Account  Debtor  is not  incorporated  under  the  laws of the
                  United  States of America or any State  thereof or the Account
                  Debtor  is  located  outside  (or has its  principal  place of
                  business  or  substantially  all of its  assets  outside)  the
                  continental  United  States,  except (in any such case) to the
                  extent the Account is  supported by an  irrevocable  letter of
                  credit  reasonably  satisfactory  to the  Agent  (as to  form,
                  substance and issuer) and assigned to and directly drawable by
                  the  Agent;  provided  that up to  $300,000  at any  one  time
                  outstanding of Accounts  which would not be Eligible  Domestic
                  Accounts  pursuant  to  this  clause  (d) may be  included  as
                  Eligible  Domestic  Accounts at the discretion of the Company;
                  or

                           (e) the Account  Debtor with  respect to such Account
                  (i) is a  creditor  of  the  Company  or  any of its  Domestic
                  Subsidiaries,  (ii)  has or has  asserted  a right  of  setoff
                  against the Company or any of its Domestic Subsidiaries, (iii)
                  has  disputed  its   liability   (whether  by   chargeback  or
                  otherwise) or made any claim with respect to the Account which
                  has not been  resolved  or (iv) the  Account is subject to any
                  adverse  security  deposit,  progress payment or other similar
                  advance  made by or for the benefit of the  Account  Debtor or
                  (v) such Account relates to amounts that the Company or any of
                  its  Domestic  Subsidiaries  must remit to a taxing  authority
                  (such as  VAT),  in each  case,  without  duplication,  to the
                  extent of the  amount  owed by the  Company  and its  Domestic
                  Subsidiaries to the Account Debtor,  the amount of such actual

                                       13
<PAGE>

                  or  asserted  right of setoff,  the amount of such  dispute or
                  claim, the amount of such adverse security  deposit,  progress
                  payment or other  similar  advance or the amount  owed to such
                  taxing authority, as the case may be; or

                           (f) the  Account  does  not  comply  in all  material
                  respects with all  requirements of applicable  law,  including
                  without limitation 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

                           (g)  the Account Debtor with respect to such Account
                  is an independent authorized service center; or

                           (h) (i) such Account (other than any Account which is
                  owing from a  Governmental  Authority  which is subject to the
                  Assignment  of Claims Act of 1940,  as amended) is not subject
                  to a valid and perfected  first  priority Lien in favor of the
                  Agent (for the  benefit of the  Lenders),  subject to no other
                  Liens  (other than the Liens,  if any,  permitted  by the Loan
                  Documents to encumber  such Account) or (ii) such Account does
                  not  otherwise   conform  in  all  material  respects  to  the
                  representations   and   warranties   contained   in  the  Loan
                  Documents; or

                           (i) the Account  Debtor with  respect to such Account
                  is the United States of America or any  department,  agency or
                  instrumentality  thereof,  unless the Company or the  relevant
                  Domestic  Subsidiary,  as the case may be,  duly  assigns  its
                  rights to payment of such Account to the Agent pursuant to the
                  Assignment of Claims Act of 1940, as amended, which assignment
                  and  related  documents  and  filings  shall  be in  form  and
                  substance reasonably  satisfactory to the Agent; provided that
                  up to $450,000 at any one time  outstanding  of Accounts which
                  would  not be  Eligible  Domestic  Accounts  pursuant  to this
                  clause (i) may be included as  Eligible  Domestic  Accounts at
                  the discretion of the Company.

                  "Eligible Domestic Inventory": shall mean, with respect to the
         Company and its Domestic  Subsidiaries at any date, the amount equal to
         the  value  (determined  in  accordance  with the  Inventory  Valuation
         Standard and expressed in Dollars) of all inventory  located within the
         United States of the Company or any of its Domestic  Subsidiaries  (the
         "Inventory"),  net of any Inventory Reserves. Unless otherwise approved
         from  time to time in  writing  by the  Agent,  no  Inventory  shall be
         "Eligible Domestic Inventory" if:

                           (a)  such item of Inventory is comprised of packing,
                   packaging and/or shipping supplies or materials; or

                                       14
<PAGE>

                           (b) such item of Inventory is held on consignment, is
                  owned by the Company or any of its Domestic  Subsidiaries  and
                  has been consigned to other  Persons,  or is located at, or in
                  the  possession  of, a vendor of the Company or such  Domestic
                  Subsidiary, or is in transit to or from, or held or stored by,
                  third parties; or

                           (c) such item of  Inventory  (i) is damaged or not in
                  good  condition  (to the extent not  provided for by Inventory
                  Reserves as described  above),  (ii) is a sample in the retail
                  stores or for marketing  purposes,  or (iii) does not meet all
                  material  standards  imposed  by  any  Governmental  Authority
                  having regulatory  authority over such item of Inventory,  its
                  use or its  sale  or  (iv)  shall  be a  discontinued  item or
                  otherwise  be  believed by the Agent  (using its  commercially
                  reasonable  judgment,  after consultation with the Company) to
                  be not readily  usable or salable  under the  customary  terms
                  upon which it usually  is sold or at prices  approximating  at
                  least the cost thereof (after giving effect to any write-downs
                  and any Inventory Reserves applicable thereto); or

                           (d) the Company or its relevant Domestic  Subsidiary,
                  as the case may be, shall not have good and  marketable  title
                  as sole owner of such item of Inventory or any claim disputing
                  the title of the Company or the  relevant  Subsidiary,  as the
                  case may be, to, or right to possession  of or dominion  over,
                  such item of Inventory shall have been asserted; or

                           (e) any  representation or warranty contained in this
                  Agreement or in any other Loan  Document  applicable to either
                  Inventory in general or to any such specific item of Inventory
                  has been breached in any material respect with respect to such
                  item of Inventory; or

                           (f) such item of Inventory is evidenced by an Account
                  ; or

                           (g)  such  item  of   Inventory  is  subject  to  any
                  licensing, patent, royalty, trademark, trade name or copyright
                  agreements  with any third  party from whom the Company or any
                  of its  Subsidiaries  has  received  notice  of a  dispute  in
                  respect of any such  agreement to the extent that such dispute
                  could  reasonably be expected to prevent the sale of such item
                  of Inventory; or

                           (h) such item of  Inventory  is not  assignable  or a
                  first priority,  perfected  security  interest in such item of
                  Inventory has not been  obtained by the Agent  pursuant to the
                  Security Agreements; or

                           (i) such item of  Inventory  is  subject  to any Lien
                  whatsoever,  other than Liens which are  permitted to encumber
                  Inventory pursuant to the Loan Documents; or

                                       15
<PAGE>

                           (j) in the case of any  determination of the Domestic
                  Borrowing Base made after the date which is three months after
                  the  Closing  Date,  such item of  Inventory  is  located on a
                  leasehold (including,  without limitation, a leased department
                  of a retail store) as to which the lessor has not entered into
                  a landlord's  waiver and consent,  reasonably  satisfactory in
                  form and  substance  to the Agent,  providing  a waiver of any
                  applicable  Lien and  providing  the  Agent  with the right to
                  receive notice of default, the right to repossess such item of
                  Inventory (without the making of any payment to such landlord)
                  at any time upon the occurrence or during the continuance of a
                  Default  or Event of Default  and such other  rights as may be
                  reasonably  acceptable to the Agent;  provided that such items
                  of  Inventory  shall  be  deemed  not to  constitute  Eligible
                  Domestic  Inventory  only to the  extent  that  the  aggregate
                  amount of such Inventory located as such location is in excess
                  of $100,000.

                  "Eligible UK Accounts": with respect to the UK Borrower at any
         date,  the  amount  equal to the  aggregate  gross  amount of  accounts
         receivable  ("Accounts")  reflected on its  receivable  aging detail or
         other analogous  statement  (without  reduction for reserves) of the UK
         Borrower on such date that have been  invoiced and  represent  the bona
         fide sale and  delivery of  merchandise,  in each case in the  ordinary
         course of  business of the UK  Borrower  in  connection  with its trade
         operations.  Unless otherwise  approved from time to time in writing by
         the Agent, no Account shall be an Eligible UK Account if:

                           (a) (i) the UK Borrower  shall not be sole payee with
                  respect  to,  or  otherwise  shall not have  sole  lawful  and
                  absolute  title  to,  such  Account  or (ii)  the  sale to the
                  Account   Debtor   giving  rise  to  such   Account  is  on  a
                  bill-and-hold,      guaranteed     sale,      sale-and-return,
                  ship-and-return,  sale on  approval  or  consignment  or other
                  similar basis or made pursuant to any other written  agreement
                  providing for  repurchase or return of any  merchandise  which
                  has been claimed to be  defective or otherwise  unsatisfactory
                  (other than for  breaches of  warranties  provided in favor of
                  consumers) or (iii) the goods giving rise to such Account have
                  not been shipped and  delivered to and accepted by the Account
                  Debtor,  or  the  transaction  giving  rise  to  such  Account
                  otherwise does not represent a completed sale; or

                           (b)  such Account arises out of a sale made by the UK
                   Borrower to an Affiliate; or

                           (c) (i) such Account  (without  giving  effect to any
                  netting for  credits) is unpaid more than 60 days from the due
                  date  thereof  or is  unpaid  for more  than 180 days from the
                  invoice date thereof or (ii) such Account has been written off
                  the books of such person or has been  otherwise  designated as
                  uncollectible  or (iii)  more  than 50% in face  amount of all

                                       16
<PAGE>

                  Accounts of the same Account Debtor and its known  affiliates,
                  taken  together,  are  ineligible  pursuant to clauses (i) and
                  (ii)  above or (iv) a check,  promissory  note,  draft,  trade
                  acceptance or other  instrument  for the payment of money with
                  respect to all or any part of such Account has been  received,
                  presented for payment and returned  uncollected for any reason
                  or (v) the Account  Debtor with  respect to such Account is in
                  the "legal" aging category, is insolvent or the subject of any
                  bankruptcy or insolvency proceeding of any kind; or

                           (d) the Account is not payable in Pounds  Sterling or
                  the Account Debtor is not  incorporated  under the laws of the
                  United  Kingdom or the Account  Debtor is located  outside (or
                  has its principal  place of business or  substantially  all of
                  its assets  outside) the United  Kingdom,  except (in any such
                  case) to the extent the Account is either (x)  supported by an
                  irrevocable  letter of credit  reasonably  satisfactory to the
                  Agent (as to form,  substance  and issuer) and assigned to and
                  directly  drawable  by the  Agent or (y)  insured  by a policy
                  reasonably satisfactory (as to issuer and terms) to the Agent;
                  or

                           (e) the Account  Debtor with  respect to such Account
                  (i) is a creditor of the UK Borrower, (ii) has or has asserted
                  a right of setoff against the UK Borrower,  (iii) has disputed
                  its liability (whether by chargeback or otherwise) or made any
                  claim with respect to the Account  which has not been resolved
                  or  (iv)  the  Account  is  subject  to any  adverse  security
                  deposit,  progress payment or other similar advance made by or
                  for the  benefit  of the  Account  Debtor or (v) such  Account
                  relates to amounts that the UK Borrower must remit to a taxing
                  authority (such as VAT), in each case, without duplication, to
                  the  extent  of the  amount  owed  by the UK  Borrower  to the
                  Account Debtor, the amount of such actual or asserted right of
                  setoff,  the amount of such  dispute  or claim,  the amount of
                  such  adverse  security  deposit,  progress  payment  or other
                  similar  advance or the amount owed to such taxing  authority,
                  as the case may be; or

                           (f)  the Account does not comply in all material
                  respects with all requirements of applicable law; or

                           (g)  the Account Debtor with respect to such Account
                  is an independent authorized service center; or

                           (h) (i) such  Account  is not  subject to a valid and
                  perfected  first  priority Lien in favor of the Agent (for the
                  benefit of the Lenders), subject to no other Liens (other than
                  the Liens, if any, permitted by the Loan Documents to encumber
                  such Account) or (ii) such Account does not otherwise  conform
                  in all material respects to the representations and warranties
                  contained in the Loan Documents.

                                       17
<PAGE>

                  "Eligible UK  Inventory":  shall mean,  with respect to the UK
         Borrower  at any date,  the amount  equal to the value  (determined  in
         accordance  with the  Inventory  Valuation  Standard  and  expressed in
         Pounds Sterling) of all inventory  located within the United Kingdom of
         the UK  Borrower  (the  "Inventory"),  net of any  Inventory  Reserves.
         Unless otherwise approved from time to time in writing by the Agent, no
         Inventory shall be "Eligible UK Inventory" if:

                           (a)  such item of Inventory is comprised of packing,
         packaging and/or shipping supplies or materials; or

                           (b) such item of Inventory is held on consignment, is
                  owned  by the UK  Borrower  and has  been  consigned  to other
                  Persons,  or is located at, or in the  possession of, a vendor
                  of the UK  Borrower,  or is in transit to or from,  or held or
                  stored by, third parties; or

                           (c) such item of  Inventory  (i) is damaged or not in
                  good  condition  (to the extent not  provided for by Inventory
                  Reserves as described  above),  (ii) is a sample in the retail
                  stores or for marketing  purposes,  or (iii) does not meet all
                  material  standards  imposed  by  any  Governmental  Authority
                  having regulatory  authority over such item of Inventory,  its
                  use or its  sale  or  (iv)  shall  be a  discontinued  item or
                  otherwise  be  believed by the Agent  (using its  commercially
                  reasonable  judgment,  after consultation with the Company) to
                  be not readily  usable or salable  under the  customary  terms
                  upon which it usually  is sold or at prices  approximating  at
                  least the cost thereof (after giving effect to any write-downs
                  and any Inventory Reserves applicable thereto); or

                           (d)  the  UK   Borrower   shall  not  have  good  and
                  marketable  title as sole owner of such item of  Inventory  or
                  any claim  disputing the title of the UK Borrower to, or right
                  to  possession  of or dominion  over,  such item of  Inventory
                  shall have been asserted; or

                           (e) any  representation or warranty contained in this
                  Agreement or in any other Loan  Document  applicable to either
                  Inventory in general or to any such specific item of Inventory
                  has been breached in any material respect with respect to such
                  item of Inventory; or

                           (f) such item of Inventory is evidenced by an Account
                  ; or

                           (g)  such  item  of   Inventory  is  subject  to  any
                  licensing, patent, royalty, trademark, trade name or copyright
                  agreements  with any third party from whom the UK Borrower has
                  received  notice of a dispute in respect of any such agreement
                  to the extent that such dispute  could  reasonably be expected
                  to prevent the sale of such item of Inventory; or

                                       18
<PAGE>

                           (h) such item of  Inventory  is not  assignable  or a
                  first priority,  perfected  security  interest in such item of
                  Inventory has not been  obtained by the Agent  pursuant to the
                  Security Agreements; or

                           (i) such item of  Inventory  is  subject  to any Lien
                  whatsoever,  other than Liens which are  permitted to encumber
                  Inventory pursuant to the Loan Documents; or

                           (j)  in  the  case  of  any  determination  of the UK
                  Borrowing Base made after the date which is three months after
                  the  Closing  Date,  such item of  Inventory  is  located on a
                  leasehold (including,  without limitation, a leased department
                  of a retail store) as to which the lessor has not entered into
                  a landlord's  waiver and consent,  reasonably  satisfactory in
                  form and  substance  to the Agent,  providing  a waiver of any
                  applicable  Lien and  providing  the  Agent  with the right to
                  receive notice of default, the right to repossess such item of
                  Inventory (without the making of any payment to such landlord)
                  at any time upon the occurrence or during the continuance of a
                  Default  or Event of Default  and such other  rights as may be
                  reasonably  acceptable to the Agent;  provided that such items
                  of  Inventory  shall be deemed not to  constitute  Eligible UK
                  Inventory only to the extent that the aggregate amount of such
                  Inventory located as such location is in excess of $100,000.

                  "environment":  ambient  air,  surface  water and  groundwater
         (including  potable  water,  navigable  water and  wetlands),  the land
         surface or subsurface  strata, the workplace or as otherwise defined in
         any Environmental Law.

                  "Environmental  Claim":  any written  accusation,  allegation,
         notice of violation,  claim, demand,  order,  directive,  cost recovery
         action or other  cause of action by, or on behalf of, any  Governmental
         Authority or any Person for damages,  injunctive  or equitable  relief,
         personal injury (including sickness, disease or death), Remedial Action
         costs,  tangible  or  intangible  property  damage,   natural  resource
         damages,  nuisance  relating  to  Hazardous  Material,  pollution,  any
         adverse effect on the environment caused by any Hazardous Material,  or
         fines, penalties or restrictions, resulting from or based upon: (a) the
         existence,   or  the  continuation  of  the  existence,  of  a  Release
         (including   sudden  or   non-sudden,   accidental  or   non-accidental
         Releases);  (b) exposure to any Hazardous  Material;  (c) the presence,
         use, handling,  transportation,  storage,  treatment or disposal of any
         Hazardous  Material;  or (d) the violation or alleged  violation of any
         Environmental Law or Environmental Permit.

                  "Environmental Law":  any and all applicable present and
         future treaties, laws, rules, regulations, codes, ordinances, orders,
         decrees, judgments, injunctions, enforceable notices or binding
         agreements issued, promulgated or entered into by any Governmental

                                       19
<PAGE>

         Authority, relating in any way to the environment, preservation or
         reclamation of natural resources, the management, Release or threatened
         Release of any Hazardous Material or health and safety matters,
         including the Comprehensive Environmental Response, Compensation and
         Liability Act of 1980, as amended by the Superfund Amendments and
         Reauthorization Act of 1986, 42 U.S.C.ss.ss. 9601 et seq. (collectively
         "CERCLA"), the Solid Waste Disposal Act, as amended by the Resource
         Conservation and Recovery Act of 1976 and Hazardous and Solid
         Amendments of 1984, 42 U.S.C.ss.ss.  6901 et seq., the Federal Water
         Pollution Control Act, as amended by the Clean Water Act of 1977, 33
         U.S.C.ss.ss.  1251 et seq., the Clean Air Act of 1970, as amended 42
         U.S.C.ss.ss.  7401 et seq., the Toxic  Substances Control Act of 1976,
         of 1970, 15 U.S.C.ss.ss.  2601 et seq., the Occupational  Safety and
         Health Act as amended,  29  U.S.C.ss.ss.  651 et seq.,  the  Emergency
         Planning and Community Right-to-Know Act of 1986, 42 U.S.C.ss.ss. 11001
         et seq., the Safe Drinking Water Act of 1974, as amended, 42 U.S.C.ss..
         ss 300(f) et seq.,the Hazardous Materials  Transportation  Act, 49
         U.S.C.ss.ss.  1801 et seq., andany  similar  or  implementing  state or
         local law,  and  all  amendments  orregulations promulgated thereunder.

                  "Environmental Permit":  any applicable permit, approval,
         authorization, certificate, license, variance, filing or permission
         required by or from any Governmental Authority pursuant to any
         Environmental Law.

                  "ERISA":  the Employee Retirement Income Security Act of 1974,
         as the same may be amended from time to time.

                  "ERISA  Affiliate":  any  trade or  business  (whether  or not
         incorporated)  that,  together with the Company, is treated as a single
         employer  under  Section  414(b) or (c) of the  Code,  or,  solely  for
         purposes  of  Section  302 of ERISA and  Section  412 of the  Code,  is
         treated as a single employer under Section 414 of the Code.

                  "Eurodollar Loan":  any Loan bearing interest based upon the
         Adjusted LIBO Rate.

                  "Event of Default":  any of the events specified in Section
         16, provided that any requirement for the giving of notice, the lapse
         of time, or both, or any other condition, has been satisfied.

                  "Excess  Cash Flow":  for any period,  EBITDA for such period,
         minus (without duplication) (a) the sum of (i) Capital Expenditures for
         such period,  (ii) increases in Net Working Capital during such period,
         (iii)  decreases in  Long-term  Reserves  during such period,  (iv) all
         Federal,  state,  local and  foreign  taxes added back to Net Income in
         determining  EBITDA  for such  period  (including,  in any  event,  any
         dividends or  distributions  paid in accordance  with the provisions of
         subsection 14.7(d)),  (v) the aggregate amount of Cash Interest Expense

                                       20
<PAGE>

         for such  period,  (vi) all  scheduled  debt  amortization  during such
         period and all voluntary prepayments of the Domestic Term Loans, the UK
         Term Loans and the Supplemental  Loans during such period and (vii) all
         repayments of the Domestic  Revolving Credit Loans and the UK Revolving
         Credit Loans during such period to the extent that such repayments were
         required pursuant to subsection 10.2(d) or (e) hereof in order to cause
         the aggregate  outstanding  principal  amount thereof to be not greater
         than the  Domestic  Revolving  Credit  Commitments  or the UK Revolving
         Credit Commitments, as the case may be, then in effect plus (b) the sum
         of (i)  decreases  in Net Working  Capital  during such period and (ii)
         increases in Long-term Reserves during such period.

                  "Excluded  Equity  Investment":  any  issuance and sale by the
         Company of its equity  securities to its existing  equity holders prior
         to the  consummation  of an  initial  public  offering  of  its  equity
         securities;  provided  that the proceeds of such  issuance and sale are
         utilized  within  five  Business  Days  thereafter  to make a Permitted
         Acquisition.

                  "Facility": with respect to any Loan, its nature as a Domestic
         Term Loan, a Domestic  Revolving  Credit  Loan,  a Domestic  Swing Line
         Loan, an Incremental Dollar Loan, an Incremental Sterling Loan, a UK
         Term Loan, a UK Revolving Credit Loan, a UK Swing  Line  Loan,  a
         Secured  Supplemental  Loan or an  Unsecured Supplemental Loan, as the
         case may be.

                  "Federal  Funds  Effective  Rate":  for any day,  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  on the  next  succeeding  Business  Day by the
         Federal  Reserve Bank of New York, or, if such rate is not so published
         for any day which is a Business Day, the average of the  quotations for
         the day of such  transactions  received by the Agent from three federal
         funds brokers of recognized standing selected by it.

                  "Fixed Charge Coverage  Ratio":  for any period,  the ratio of
         (a) the  difference  between  (i) EBITDA for such period and (ii) Fixed
         Charges for such period to (b) the sum of (i) Cash Interest Expense for
         such period and (ii) all scheduled  amortization of Indebtedness of the
         Company and its  Subsidiaries  (on a  consolidated  basis) for borrowed
         money  (excluding  maturities of working capital lines of credit of the
         Foreign  Subsidiaries of the Company) during such period.  For purposes
         of this definition, the aggregate amount of such scheduled amortization
         of such  Indebtedness  for  borrowed  money  shall be  deemed to be (x)
         $200,000 for the quarter ended  December 31, 1995, (y) $200,000 for the
         quarter  ended March 31, 1996 and (z) $200,000  for the quarter  ending
         June 30, 1996.

                  "Fixed Charges":  for any period,  the amount equal to the sum
         of (a)  consolidated  Capital  Expenditures  of  the  Company  and  its
         Subsidiaries  for such  period  and (b) cash  income  taxes paid by the
         Company and its Subsidiaries on a consolidated basis during such period

                                       21
<PAGE>

         (including,  in any  event,  any  dividends  or  distributions  paid in
         accordance with the provisions of subsection 14.7(d)). For all purposes
         hereunder,  the Fixed Charges of the Company and its Subsidiaries shall
         be deemed to be (x)  $2,700,000  for the fiscal  quarter ended December
         31, 1995,  (y) $900,000 for the fiscal quarter ended March 31, 1996 and
         (z) $2,500,000 for the fiscal quarter ended June 30, 1996.

                  "Foreign Subsidiary":  any Subsidiary of the Company organized
         under the laws of any jurisdiction outside the United States of
         America.

                  "GAAP": generally accepted accounting principles in the United
         States of America as in effect from time to time;  provided  that,  for
         purposes of  determining  compliance  with the  covenants  contained in
         subsections  14.12 through 14.16,  GAAP shall mean  generally  accepted
         accounting  principles  as in effect on the date of this  Agreement and
         applied  on a  basis  consistent  with  the  application  used  in  the
         financial  statements  referred to in  subsection  11.5(a) for the 1995
         fiscal year of the Company.

                  "Governmental Authority":  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

                  "Guarantee  Obligation":  as to any Person (the  "guaranteeing
         person"),  any obligation of (a) the guaranteeing person or (b) another
         Person  (including,  without  limitation,  any bank under any letter of
         credit) to induce the  creation  of which the  guaranteeing  person has
         issued a  reimbursement,  counterindemnity  or similar  obligation,  in
         either case  guaranteeing or in effect  guaranteeing any  Indebtedness,
         leases,  dividends or other obligations (the "primary  obligations") of
         any other third Person (the "primary  obligor") in any manner,  whether
         directly or indirectly,  including,  without limitation, any obligation
         of the guaranteeing person, whether or not contingent,  (i) to purchase
         any such  primary  obligation  or any property  constituting  direct or
         indirect security therefor, (ii) to advance or supply funds (1) for the
         purchase or payment of any such primary  obligation  or (2) to maintain
         working  capital or equity capital of the primary  obligor or otherwise
         to maintain the net worth or solvency of the primary obligor,  (iii) to
         purchase property,  securities or services primarily for the purpose of
         assuring the owner of any such primary obligation of the ability of the
         primary  obligor to make  payment of such  primary  obligation  or (iv)
         otherwise  to assure  or hold  harmless  the owner of any such  primary
         obligation against loss in respect thereof; provided, however, that the
         term Guarantee Obligation shall not include endorsements of instruments
         for deposit or  collection  in the  ordinary  course of  business.  The
         amount of any Guarantee  Obligation of any guaranteeing person shall be
         deemed  to be the  lower  of (a)  an  amount  equal  to the  stated  or
         determinable  amount of the primary obligation in respect of which such
         Guarantee  Obligation is made and (b) the maximum amount for which such
         guaranteeing  person  may  be  liable  pursuant  to  the  terms  of the
         instrument  embodying  such Guarantee  Obligation,  unless such primary
         obligation  and the maximum amount for which such  guaranteeing  person

                                       22
<PAGE>

         may be liable are not stated or determinable,  in which case the amount
         of  such  Guarantee  Obligation  shall  be such  guaranteeing  person's
         maximum  reasonably   anticipated   liability  in  respect  thereof  as
         determined by the Company in good faith.

                  "Guarantees":  the collective reference to the guarantee made
         by the Company pursuant to Section 15 hereof and each Subsidiaries
         Guarantee.

                  "Guarantor":  any Person delivering a Subsidiaries Guarantee
         pursuant to this Agreement.

                  "Hazardous Materials": all explosive or radioactive substances
         or wastes, hazardous or toxic substances or wastes, pollutants,  solid,
         liquid or gaseous wastes, including petroleum or petroleum distillates,
         friable  asbestos  or  asbestos-containing  materials,  polychlorinated
         biphenyls ("PCBs") or PCB-containing materials or equipment, radon gas,
         infectious or medical wastes  regulated  pursuant to any  Environmental
         Law and all other substances or wastes of any nature regulated pursuant
         to any Environmental Law.

                  "Included Indebtedness":  at any date, the amount equal to the
         sum of (a) the  average  daily  amount  of  Domestic  Revolving  Credit
         Exposure  during the period of 12  consecutive  fiscal  months ended on
         such date,  (b) the  average  daily  amount of the  Incremental  Credit
         Exposure outstanding during the period of 12-consecutive  fiscal months
         ended on such  date,  (c) the  average  daily  principal  amount  of UK
         Revolving  Credit  Exposure   outstanding   during  the  period  of  12
         consecutive  fiscal  months ended on such date,  (d) the average  daily
         principal amount of working capital  Indebtedness for borrowed money of
         the Foreign  Subsidiaries  of the Company  (other than the UK Borrower)
         outstanding  during the period of 12 consecutive fiscal months ended on
         such date, (e) the average daily principal  amount of the  Supplemental
         Loans during the period of 12  consecutive  fiscal months ended on such
         date and (f) without duplication, the aggregate principal amount of all
         other  Indebtedness for borrowed money (including  without  limitation,
         the Senior  Subordinated  Indebtedness  and Loans owing hereunder which
         are  not  described  in  clause  (a),  (b),  (c),  (d) or  (e) of  this
         definition)  of the Company  and its  Subsidiaries  (on a  consolidated
         basis)  outstanding  as of such  date.  For all  purposes  hereof,  the
         aggregate  average daily principal amount of Indebtedness  described in
         clauses  (a),  (c) and (d) of this  definition  shall be  deemed  to be
         $29,500,000 on each date through June 30, 1996.

                                       23
<PAGE>

                  "Incremental Commitment Termination Date":  January 31, 2001.

                  "Incremental  Credit  Exposure":  at any  date,  (a) as to all
         Incremental  Lenders,  the amount  equal to the  aggregate  outstanding
         principal  amount of Incremental  Loans then  outstanding and (b) as to
         any Incremental  Lender, the amount equal to the aggregate  outstanding
         principal amount of all then-outstanding Incremental Loans made by such
         Incremental Lender.

                   "Incremental Dollar Credit Commitment":  as to any
         Incremental Dollar Lender the obligation of such Incremental Dollar
         Lender to make Incremental Dollar Loans hereunder in an aggregate
         principal amount at any one time not to exceed the amount set forth
         opposite such Incremental Dollar Lender's name on Schedule 1 under the
         heading "Incremental Dollar Credit Commitments", as such amount may be
         reduced from time to time in accordance with the provisions of this
         Agreement.
                   "Incremental Dollar Credit Exposure":  at any date, (a) as to
         all Incremental Dollar Lenders, the amount equal to the aggregate
         outstanding principle amount of Incremental Dollar Loans then
         outstanding and (b) as to any Incremental Dollar Lender, the amount
         equal to the aggregate outstanding principal amount of all then-
         outstanding Incremental Dollar Loans made by such Incremental Dollar
         Lender.

                  "Incremental Dollar Lender": at any date, each  bank or  other
         financial institution which holds any Incremental Dollar Credit
         Commitment (or,  at  any  time  after  the  Incremental Dollar  Credit
         Commitment has terminated, Incremental Dollar Credit Exposure) on such
         date.

                  "Incremental Dollar Loan": as defined in subsection 3A.1(a)

                  "Incremental Lenders":  the collective reference to the
         Incremental Dollar Lenders and the Incremental Sterling Lenders.

                  "Incremental Loan":  as defined in subsection 3A.1(b).

                  "Incremental Note": as defined in subsection 3A.4(d)

                  "Incremental Sterling Credit Commitment":  as to any
         Incremental Sterling Lender, the obligation of such Incremental
         Sterling Lender to make Incremental Sterling Loans hereunder in an
         aggregate principal amount at any one time not to exceed the amount set
         forth opposite such Incremental Sterling Lender's name on Schedule 1
         under the heading "Incremental Sterling  Credit Commitments", as such
         amount may be reduced from time to time in accordance with the
         provisions of this Agreement.

                                       24
<PAGE>

                  "Incremental Sterling Credit Exposure": at any date, (a) as to
         all Incremental Sterling Lenders, the amount equal to the aggregate
         outstanding principal amount of Incremental Sterling Loans then
         outstanding and (b) as to any Incremental Sterling Lender, the amount
         equal to the aggregate outstanding principal amount of all then-
         outstanding Incremental Sterling Loans made by such Incremental
         Sterling Lender.

                  "Incremental Sterling Lender":  at any date, each bank or
         other financial institution which holds any Incremental Sterling Credit
         Commitment (or, at any time after the Incremental Sterling Credit
         Commitment has terminated, Incremental Sterling Credit Exposure) on
         such date.

                  "Incremental Sterling Loan": as defined in subsection 3A.1(b)

                  "Indebtedness": of any Person at any date, (a) all obligations
         of such Person for borrowed  money,  (b) all obligations of such Person
         evidenced by bonds, debentures,  notes or similar instruments,  (c) all
         obligations of such Person upon which interest charges  customarily are
         paid,  (d) all  obligations  of such Person under  conditional  sale or
         other title retention  agreements  relating to assets purchased by such
         Person,  (e) all  obligations  of such Person  issued or assumed as the
         deferred  purchase  price for  property  or services  (excluding  trade
         accounts payable and accrued expenses arising in the ordinary course of
         business  in  accordance   with   customary   trade  terms),   (f)  all
         indebtedness  of others secured by a Lien on property owned or acquired
         by such Person,  whether or not the  obligations  secured  thereby have
         been  assumed by such  Person,  (g) all  Guarantees  by such  Person of
         Indebtedness  of others,  (h) all  Capital  Lease  Obligations  of such
         Person,  (i)  all  obligations  of  such  Person  in  respect  of  Rate
         Protection  Agreements (such obligations to be equal at any time to the
         termination  value of such  Agreements  that  would be  payable by such
         Person  at such  time)  and (j) all  obligations  of such  Person as an
         account  party to reimburse  any bank or any other Person in respect of
         letters of credit and bankers'  acceptances.  The  Indebtedness  of any
         Person  shall  include the  Indebtedness  of any  partnership  or joint
         venture in which such Person is a general partner or member, other than
         to  the  extent  that  the  instrument  or  agreement  evidencing  such
         Indebtedness  expressly  limits the liability of such Person in respect
         thereof pursuant to provisions and terms reasonably satisfactory to the
         Agent.

                  "Insolvency":  with respect to any Multiemployer Plan, the
         condition that such Plan is insolvent within the meaning of Section
         4245 of ERISA.

                  "Insolvent":  pertaining to a condition of Insolvency.

                  "Insurance  Proceeds" shall have the meaning  assigned to such
         term in subsection 18.8(a).

                                       25
<PAGE>

                  "Interest Expense Coverage Ratio":  for any period, the ratio
         of (a) EBITDA for such period to (b) Cash Interest Expense for
         such period.

                  "Interest  Payment  Date":  (a) as to any ABR Loan or Sterling
         Base  Rate  Loan,  the  last day of each  March,  June,  September  and
         December,  (b) as to any  Eurodollar  Loan or  Domestic  Sterling  Loan
         having an Interest Period of three months or less, the last day of such
         Interest Period, and (c) as to any Eurodollar Loan or Domestic Sterling
         Loan  having an Interest  Period  longer  than three  months,  each day
         during such Interest  Period which is three months or a whole  multiple
         thereof after the first day of such Interest Period and the last day of
         such Interest Period.

                  "Interest Period":  with respect to any Eurodollar Loan or
                  Domestic Sterling Loan:

             (i)  initially,   the  period   commencing   on  the  borrowing  or
                  conversion  date,  as the case may be,  with  respect  to such
                  Eurodollar Loan or Domestic Sterling Loan, as the case may be,
                  and ending  one,  two,  three,  six or (if  confirmed  by each
                  relevant Lender to be available) nine or 12 months thereafter,
                  as  selected  by  the  relevant  Borrower  in  its  notice  of
                  borrowing or notice of  conversion,  as the case may be, given
                  with respect thereto; and

            (ii)  thereafter, each period commencing on the last day of the next
                  preceding  Interest Period  applicable to such Eurodollar Loan
                  or Domestic Sterling Loan, as the case may be, and ending one,
                  two, three, six or (if confirmed by each relevant Lender to be
                  available)  nine or 12 months  thereafter,  as selected by the
                  relevant  Borrower by a notice of  continuation  with  respect
                  thereto;

         provided that, all of the foregoing provisions relating to Interest
         Periods are subject to the following:

                           (1) if any Interest  Period would  otherwise end on a
                  day that is not a Business Day, such Interest  Period shall be
                  extended to the next succeeding Business Day unless the result
                  of such extension  would be to carry such Interest Period into
                  another  calendar  month in which event such  Interest  Period
                  shall end on the immediately preceding Business Day;

                           (2) any Interest Period that would  otherwise  extend
                  beyond the Termination  Date shall end on the Termination Date
                  (or,  in the  case  of any  Interest  Period  applicable  to a
                  Supplemental  Loan,  the  maturity  date with  respect  to the
                  Supplemental Loans and, in the case of any Interest Period
                  applicable to an Incremental Loan, the Incremental Commitment
                  Termination Date):

                           (3) any  Interest  Period  that  begins  on the  last
                  Business Day of a calendar  month (or on a day for which there
                  is no numerically  corresponding  day in the calendar month at

                                       26
<PAGE>

                  the  end of  such  Interest  Period)  shall  end  on the  last
                  Business Day of a calendar month; and

                           (4)the   relevant   Borrower  shall  select  Interest
                  Periods so as not to require a payment  or  prepayment  of any
                  Eurodollar Loan or Domestic Sterling Loan, as the case may be,
                  during an Interest Period applicable thereto.

                  "International  Pledge  Agreement":  each Pledge Agreement (or
         analogous agreement),  in form and substance reasonably satisfactory to
         the  Agent,  to be  executed  and  delivered  by the  Company  and each
         Domestic  Subsidiary  pledging capital stock of any Foreign Subsidiary,
         as the same may be amended,  supplemented  or otherwise  modified  from
         time to time.

                  "Inventory":  as defined in "Eligible Domestic Inventory" or
         in "Eligible UK Inventory," as the context shall require.

                  "Inventory Reserves":  with respect to Inventory of:

                           (a) the Company and its Domestic  Subsidiaries at any
                  date,  the amount  equal to the sum of (i) the amount by which
                  the value of the perpetual  Inventory on such date exceeds the
                  value of the  Inventory  on the  general  ledger on such date,
                  (ii) any  profits  or  transfer  price  additions  accrued  in
                  connection  with  transfers  of  such  Inventory  between  the
                  Company  and its  Subsidiaries  or among  Subsidiaries  of the
                  Company,  (iii) any favorable variances  (production material,
                  production  manufacturing,  purchase  price  variance or other
                  variance  categories)  that  result  when  standard  costs are
                  greater than the actual costs and are  remaining in the ending
                  inventory  balance  (with such  favorable  variance  inventory
                  reserve  to  (x)  be  subject  to  review,   testing  and,  if
                  appropriate, adjustment by the Agent, (y) be calculated on the
                  last day of the accounting  period for each calendar  quarter,
                  commencing on March 31, 1999,  on an individual  product basis
                  and (z) remain in effect until the next calculation), (iv) the
                  amount  of any  reserve  maintained  by the  Company  and  its
                  Subsidiaries  (consistent  with  their  respective  historical
                  practices)  for  inactive,   excess  and  obsolete  inventory,
                  shrinkage,  and  markdowns  and (v) the amount of any  accrued
                  costs  and  expenses  (such as  freight,  duty and  insurance)
                  required  to  be  paid  by  the   Company  and  its   Domestic
                  Subsidiaries  in order to take possession at a facility of the
                  Company or any of its Domestic  Subsidiaries  of any Inventory
                  which is then in transit and which is included in the Domestic
                  Borrowing Base; and

                           (b) the UK Borrower at any date,  the amount equal to
                  (i) the amount by which the value of the  perpetual  Inventory
                  on such date exceeds the value of the Inventory on the general
                  ledger on such date,  (ii) any net favorable  variances of the
                  six   previous   months   (production   material,   production
                  manufacturing,  purchase  price  variance,  or other  variance

                                       27
<PAGE>

                  categories)  that result when standard  costs are greater than
                  actual  costs,  (iii) the amount of any reserve  maintained by
                  the UK Borrower (consistent with its historical practices) for
                  inactive,  excess  and  obsolete  inventory,   shrinkage,  and
                  markdowns and (v) the amount of any accrued costs and expenses
                  (such as freight,  duty and insurance)  required to be paid by
                  the UK Borrower in order to take  possession  at a facility of
                  the UK Borrower of any Inventory  which is then in transit and
                  which is included in the UK Borrowing Base.

                  "Inventory Valuation  Standard":  with respect to Inventory at
         any  date,  the  lower of (a)  cost of such  Inventory,  determined  in
         accordance with GAAP (excluding any LIFO reserve) and stated on a basis
         consistent  with  the  historical  practices  of the  Company  and  its
         Subsidiaries  as of the  Closing  date  and (b)  market  value  of such
         Inventory on such date.

                  "Issuing  BankIssuing  BankIssuing Bank": with respect to each
         Letter of Credit,  (a) Chase,  (b) at the request of the Borrower  (and
         with the consent of the Agent,  which consent will not be  unreasonably
         withheld), any other Lender who agrees to serve in such capacity or (c)
         any affiliate thereof.

                  "L/C Commitment":  $10,000,000, as such amount may be reduced
         from time to time in accordance with the terms hereof.

                  "L/C ObligationsL/C  ObligationsL/C Obligations": at any time,
         an  amount  equal  to the sum of (a) the  aggregate  then  undrawn  and
         unexpired face amount of the then outstanding Letters of Credit and (b)
         the  aggregate  principal  amount of drawings  under  Letters of Credit
         which have not then been reimbursed pursuant to subsection 4.5(a).

                  "L/C  ParticipantsL/C   ParticipantsL/C  Participants":   with
         respect to any Letter of Credit,  the  collective  reference to all the
         Domestic Lenders other than the Issuing Bank with respect  thereto,  if
         it is then a Domestic Lender.

                  "Lender" shall mean a Domestic Lender, an Incremental  Lender,
         a UK Lender, a Secured Supplemental Lender or an Unsecured Supplemental
         Lender,  as the context  shall  require,  and shall include the Issuing
         Bank as appropriate; collectively, the "Lenders."

                  "Letter of Credit":  as defined in subsection 4.1(b)(i).

                  "Leverage  Ratio": as of any date, the ratio of (a) the amount
         of  Included   Indebtedness  as  of  such  date  minus  cash  and  cash
         equivalents  as of such  date to (b)  EBITDA  for the  period of twelve
         consecutive fiscal months ended on such date.

                                       28
<PAGE>

                  "LIBO  Rate":  with  respect  to any  Eurodollar  Loan for any
         Interest Period,  (a) if at least two offered rates for Dollar deposits
         for a period  comparable to such Interest  Period appear on the Reuters
         Screen LIBO Page as of 11:00 a.m.,  London time, on the day that is two
         Business  Days  prior to the first  day of such  Interest  Period,  the
         arithmetic  mean of all such  offered  rates and (b) if fewer  than two
         such  offered  rates so appear on the  Reuters  Screen  LIBO Page,  the
         arithmetic mean,  determined by the Agent based on quotations  provided
         by each of the Reference Lenders,  of the respective rates per annum at
         which Dollar deposits  approximately  equal to each Reference  Lender's
         respective  portion of the applicable  Eurodollar Loan and for a period
         comparable  to  the  applicable  Interest  Period  are  offered  to the
         principal  London  office  of  such  Reference  Lender  in  immediately
         available funds in the London intermarket market at approximately 11:00
         a.m.,  London time,  on the day that is two Business  Days prior to the
         first day of such Interest Period.  The term "Reuters Screen LIBO Page"
         shall mean the  display  screen  designated  "LIBO Page" on the Reuters
         Monitor  Money Rates  Service  (or such other page as may replace  such
         page on such service for the purpose of displaying comparable rates).

                  "Lien":  any  mortgage,  pledge,  hypothecation,   assignment,
         deposit arrangement,  encumbrance, lien (statutory or other), charge or
         other security  interest or any preference,  priority or other security
         agreement or preferential  arrangement of any kind or nature whatsoever
         (including,  without  limitation,  any conditional  sale or other title
         retention agreement and any Capital Lease having substantially the same
         economic effect as any of the foregoing).

                  "Loan":  a Domestic  Revolving  Credit Loan, a Domestic  Swing
         Line Loan, a Domestic  Term Loan, an  Incremental  Loan, a UK Revolving
         Credit  Loan,  a  UK  Swing  Line  Loan,  a UK  Term  Loan,  a  Secured
         Supplemental  Loan or an Unsecured  Supplemental  Loan,  as the context
         shall require; collectively, the "Loans."

                  "Loan Documents":  this Agreement, any Notes, any Joinder
         Agreements, the Guarantees, the Security Documents and the
         Rate Protection Agreements.

                  "Lock Box Agreement" shall mean a Lock Box Agreement among the
         Company  or a  Subsidiary,  the Agent  and a Lock Box Bank (as  defined
         therein; provided that each Lock Box Bank shall be a Bank party to this
         Agreement),  substantially  in the form of Exhibit G hereto  (with such
         changes therein as shall (x) in the case of any Lock Box Agreement with
         the  UK  Borrower  or  any  of  its  Subsidiaries,  be  appropriate  in
         accordance with customary practice in the United Kingdom and (y) in any
         case, be negotiated by the Agent and the respective  Lock Box Bank), as
         the same may be amended,  supplemented or otherwise  modified from time
         to time in accordance with the terms thereof and of this Agreement.

                  "Long-term   Reserves":   as  of  any  date,  the  non-current
         liabilities  of the  Company  and its  Subsidiaries  as of such date in
         respect of (a) pension  benefits,  (b)  post-retirement  benefits other

                                       29
<PAGE>

         than  pensions,  such as  retirement  health  care and  life  insurance
         benefits, and (c) post-employment  benefits, in each case determined on
         a consolidated basis in accordance with GAAP.

                  "Management Subscription Agreements":  the Management
         Subscription Agreements, dated on or about the date hereof,
         between the Company and certain of its executive officers.

                  "Margin Stock":  as defined in Regulation U.

                  "Material Adverse Effect":  a (a) materially adverse effect on
         the business,  assets, operations,  properties,  financial condition or
         contingent  liabilities of the Company and the Subsidiaries  taken as a
         whole,  (b)  material  impairment  of the ability of the Company or any
         Subsidiary  to perform any of its material  obligations  under any Loan
         Document to which it is or will be a party or (c)  material  impairment
         of the  rights of or  benefits  available  to the Agent,  the  Domestic
         Lenders,   the  Incremental   Lenders,  the  UK  Lenders,  the  Secured
         Supplemental  Lenders or the Unsecured  Supplemental  Lenders under any
         Loan Document.

                  "Members":  the Persons listed on Schedule XIII hereto.

                  "Members Pledge Agreement":  the Pledge Agreement to be
         executed and delivered by each of the Members, substantially in the
         form of Exhibit B, as the same may be amended, supplemented or
         otherwise modified from time to time.

                  "MLA Cost": in relation to a Domestic  Sterling Loan, the cost
         imputed to the Lenders of compliance  with the Mandatory  Liquid Assets
         requirements  of  the  Bank  of  England  during  an  Interest  Period,
         expressed  as a rate  per  annum  and  determined  in  accordance  with
         Schedule XVI.

                  "Mortgaged Property":  each parcel of real property which is
         subject to the Company Mortgage.

                  "Multiemployer  Plan": (a) a multiemployer  plan as defined in
         Section  4001(a)(3) of ERISA to which the Company or any  Subsidiary or
         ERISA   Affiliate  is  making  or  accruing  an   obligation   to  make
         contributions and (b) any  multiemployer  plan (as so defined) to which
         the Company or any Subsidiary or ERISA  Affiliate has within any of the
         preceding  five  plan  years  made or  accrued  an  obligation  to make
         contributions,  but in the case of this clause (b) only if the Company,
         a  Subsidiary  or an ERISA  Affiliate  of either  would be liable under
         Title IV of ERISA in respect of such plan.

                  "Net Cash Proceeds":  with respect to any Prepayment  Event or
         other  event,  (a) the gross  proceeds in the form of cash or Permitted
         Investments  (including  insurance  proceeds,  condemnation  awards and

                                       30
<PAGE>

         payments from time to time in respect of  installment  obligations,  if
         applicable)  received by or on behalf of the Company or any  Subsidiary
         in respect of such Prepayment Event or other event minus (b) the sum of
         (i) in the case of any  Prepayment  Event,  the amount,  if any, of all
         taxes  (other  than  income  taxes)  payable  by  the  Company  or  any
         Subsidiary in connection with such  Prepayment  Event and the Company's
         good-faith  best  estimate of the amount of all income taxes payable in
         connection with such Prepayment Event (including,  without limitations,
         distributions  under  subsection  14.7(d)),  (ii)  in  the  case  of  a
         Prepayment  Event that is an asset sale or  disposition,  the amount of
         any reasonable reserve  established in accordance with GAAP against any
         liabilities  (including,  without  limitation,  Indebtedness  which  is
         payable upon such Prepayment  Event) associated with the assets sold or
         disposed of and  retained by the  Company or any  Subsidiary,  provided
         that the amount of any subsequent reduction of such reserve (other than
         in connection with a payment in respect of any such liability) shall be
         deemed to be Net Cash Proceeds of a Prepayment  Event  occurring on the
         date of such  reduction,  and  (iii)  reasonable  and  customary  fees,
         commissions  and  expenses  and other  costs paid by the Company or any
         Subsidiary in connection with such Prepayment  Event or other event, in
         each case only to the extent not  already  deducted  in arriving at the
         amount referred to in clause (a) above.

                  "Net Income": for any period, the aggregate net income (or net
         deficit) of the Company and its Subsidiaries for such period determined
         on a consolidated  basis in accordance  with GAAP;  provided,  however,
         that the term "Net Income" shall exclude extraordinary gains and losses
         from the sale of assets other than in the  ordinary  course of business
         (including, without limitation, dispositions of obsolete fixed assets).

                  "Net Working Capital":  as of any date, Current Assets as of
         such date less Current Liabilities as of such date.

                  "Non-Excluded Taxes":  as defined in subsection 10.12(a).

                  "Notes":  the collective  reference to the Domestic  Revolving
         Credit  Notes,  the Domestic  Swing Line Note,  the Domestic  Term Loan
         Notes,  the Incremental  Notes,  the UK Revolving  Credit Notes, the UK
         Swing Line Note, the UK Term Loan Notes, the Secured Supplemental Notes
         and the Unsecured Supplemental Notes.

                  "Participant":  as defined in subsection 18.6(b).

                  "Payment  Sharing Notice" shall mean a written notice from the
         Company or any Lender  informing the Agent that an Event of Default has
         occurred and is continuing and directing the Agent to allocate payments
         thereafter   received  from  the  Borrowers  in  accordance   with  the
         provisions of subsection 10.9(b)(ii).

                                       31
<PAGE>

                  "PBGC":  the Pension Benefit Guaranty Corporation referred to
         and defined in ERISA.

                  "Permitted Acquisition": as defined in subsection 14.5(f).

                  "Permitted  Excess Cash Flow Basket":  at any date, the amount
         equal to the aggregate amount of Excess Cash Flow of the Company during
         the period  from the  Closing  Date  through the last day of the fiscal
         quarter  most  recently  ended minus the amount equal to the sum of (a)
         the  aggregate  amount  required to be repaid  pursuant  to  subsection
         10.2(c) hereof in respect of such period,  (b) the aggregate  amount of
         any Capital  Expenditures  made during such period in reliance upon the
         provisions  of clause  (b) of the  definition  of such term and (c) the
         amount  by  which  the sum of (i) the  aggregate  principal  amount  of
         Indebtedness  then  outstanding  under  subsection  14.1(h),  (ii)  the
         aggregate  principal amount of Indebtedness and trade payables which is
         then guaranteed  pursuant to subsection 14.3(c) and (iii) the aggregate
         amount of all investments in and capital  contributions  to all Foreign
         Subsidiaries  since the Closing  Date  pursuant to  subsection  14.5(e)
         (net, in the case of this clause (iii) only, of the aggregate amount of
         any dividends and  distributions  paid by such Foreign  Subsidiaries to
         the Company and its Domestic Subsidiaries), exceeds $17,500,000.

                  "Permitted Investments":

                  (a)direct  obligations of, or obligations the principal of and
         interest on which are unconditionally  guaranteed by, the United States
         of America (or by any agency thereof to the extent such obligations are
         backed by the full faith and credit of the United  States of  America),
         in each  case  maturing  within  90 days  from the date of  acquisition
         thereof;

                  (b)  without  limiting  the  provisions  of clause  (d) below,
         investments in commercial  paper maturing within 270 days from the date
         of acquisition  thereof and having,  at such date of  acquisition,  the
         highest credit rating  obtainable  from Standard & Poor's Ratings Group
         or from Moody's Investors Service, Inc.;

                  (c)   investments  in   certificates   of  deposit,   bankers'
         acceptances   and  time  deposits   (including,   without   limitation,
         eurodollar  time  deposits)  maturing  within one year from the date of
         acquisition  thereof  issued or guaranteed by or placed with, and money
         market deposit  accounts  issued or offered by, (i) any domestic office
         of the Agent or (ii) any domestic  office of any other  commercial bank
         organized  under the laws of the United  States of America or any State
         thereof,  or any Lender that is a commercial  bank, that has a combined
         capital and surplus and undivided profits of not less than $250,000,000
         and that is rated (or the senior debt securities of the holding company
         of such  commercial  bank are  rated) A or better by  Standard & Poor's
         Ratings Group or A2 or better by Moody's  Investors  Service,  Inc., or
         carrying an equivalent rating by another  nationally  recognized rating
         agency if  neither  of the two named  rating  agencies  shall rate such
         commercial bank (or the holding company of such commercial bank);

                                       32
<PAGE>

                  (d)  investments in commercial  paper maturing within one year
         from the date of  acquisition  thereof  and  issued by (i) the  holding
         company  of the  Agent  or  (ii)  the  holding  company  of  any  other
         commercial bank of recognized  standing organized under the laws of the
         United States of America or any state thereof,  or any Lender that is a
         commercial  bank, that has (A) a combined capital and surplus in excess
         of  $250,000,000  and (B)  commercial  paper  rated at least A-1 or the
         equivalent  thereof by Standard & Poor's  Ratings Group or at least P-1
         or the  equivalent  thereof  by Moody's  Investors  Service,  Inc.,  or
         carrying an equivalent rating by another  nationally  recognized rating
         agency if neither of the two named  rating  agencies  rate such holding
         company;

                  (e) repurchase agreements having a term of seven days or fewer
         with (i) any domestic  office of the Agent or (ii) any domestic  office
         of any other commercial bank of recognized standing organized under the
         laws of the  United  States of  America  or any state  thereof,  or any
         Lender  that is a  commercial  bank,  that has a combined  capital  and
         surplus and undivided profits of not less than $250,000,000 and that is
         rated (or the senior debt  securities  of the  holding  company of such
         commercial  bank are rated) A or better by  Standard  & Poor's  Ratings
         Group or A2 or better by Moody's Investor Services, Inc. or carrying an
         equivalent  rating by another  nationally  recognized  rating agency if
         neither of the two named  rating  agencies  shall rate such  commercial
         bank (or the holding company of such commercial  bank), and relating to
         marketable direct obligations  issued or unconditionally  guaranteed by
         the  United  States  but only if the  securities  collateralizing  such
         repurchase agreements are delivered to or to the order of the Agent;

                  (f) other  investment  instruments  approved in writing by the
         Required  Lenders and  offered by  financial  institutions  that have a
         combined  capital and surplus  and  undivided  profits of not less than
         $250,000,000; and

                  (g)investments in money market funds  substantially all of the
         assets of which are comprised of  securities of the types  described in
         clauses (a) through (f) of this definition;

         provided  that,  in the case of any Foreign  Subsidiary of the Company,
         the term "Permitted  Investments"  shall mean any investments which are
         comparable in credit  quality and tenor to those  referred to above and
         are used in the ordinary  course of business by similar  companies  for
         cash management purposes in the relevant jurisdiction.

                  "Person":  an individual, partnership, corporation, business
         trust, joint stock company, trust, unincorporated association, joint
         venture, Governmental Authority or other entity of whatever nature.

                  "Plan":  an employee  benefit plan (other than a Multiemployer
         Plan)  which is  covered  by Title  IV of  ERISA or is  subject  to the
         minimum funding  standards under Section 412 of the Code and either (i)
         is maintained by the Company,  any of its Subsidiaries or any Affiliate
         or (ii) with respect to which the Company,  any of its  Subsidiaries or
         any ERISA Affiliate has retained any liability.

                                       33
<PAGE>

                  "Pledge Agreements:  the collective reference to the Members
         Pledge Agreement, the Company Pledge Agreement, each Subsidiaries
         Pledge Agreement and each International Pledge Agreement.

                  "Pounds  Sterling" and "(pound)":  the lawful  currency of the
         United Kingdom.

                  "Prepayment   Event":   (a)  the  sale,   transfer   or  other
         disposition  of any  business  unit,  asset  or other  property  of the
         Company  or any  Subsidiary  (including  dispositions  in the nature of
         casualties  (to the  extent  covered  by  insurance)  or  condemnations
         (including  any Casualty or  Condemnation  in respect of any  Mortgaged
         Property,  as contemplated  by and defined in Section  18.8)),  (b) the
         issuance  or  incurrence  by  the  Company  or  any  Subsidiary  of any
         Indebtedness  incurred pursuant to subsection  14.1(e), or the issuance
         or sale by the Company or any Subsidiary of any debt  securities or any
         obligations  convertible into or exchangeable for, or giving any Person
         or entity any right,  option or warrant to acquire  from the Company or
         any  Subsidiary,  any  Indebtedness  or any such debt securities or any
         such  convertible  or  exchangeable  obligations or (c) the issuance or
         sale by the Company or any Subsidiary of any equity  securities  (other
         than the issuance of equity securities (x) to management of the Company
         and  its   Subsidiaries   pursuant  to  the   Management   Subscription
         Agreements,  (y) to the Company or any of its wholly-owned Subsidiaries
         or (z)  constituting an Excluded Equity  Investment) or any obligations
         convertible  into or exchangeable  for, or giving any Person any right,
         option or warrant to acquire  from the Company or any  Subsidiary,  any
         equity securities or any such convertible or exchangeable  obligations.
         Notwithstanding  the foregoing,  the term "Prepayment  Event" shall not
         include:

                           (i) sales,  transfers and other  dispositions of used
                  or  surplus  equipment,  vehicles  and  other  assets  in  the
                  ordinary course of business permitted by subsection 14.6(b) to
                  the extent  that the gross  proceeds  from all such sales does
                  not exceed  $3,000,000  in the  aggregate  in any fiscal year;
                  provided,  however,  that to the extent that the Company shall
                  have reinvested on the date of such event (or certified to the
                  Agent  that it  intends  to  reinvest  within 360 days of such
                  event) any of such excess  proceeds in equipment,  vehicles or
                  other  assets  used  in  the  business  of  the  Company,  the
                  resultant  Prepayment  Event shall be reduced by the amount so
                  reinvested or to be reinvested  (and provided,  further,  that
                  any  amounts  not so  reinvested  within  360 days  after such
                  certification  shall  promptly be applied as Net Cash Proceeds
                  of a Prepayment  Event and, during such time as any Default or
                  Event of Default  has  occurred  and is  continuing,  shall be
                  deposited in a cash collateral account with the Agent until so
                  applied);

                           (ii)  sales of inventory in the ordinary course of
                  business (including, without limitation, sales of damaged or
                  obsolete inventory) and sales of Permitted Investments;

                                       34
<PAGE>

                           (iii)  the  receipt  of  insurance  or   condemnation
                  proceeds  (other  than  Condemnation  Proceeds  and  Insurance
                  Proceeds  in respect  of  Mortgaged  Property),  except to the
                  extent in excess of  $3,000,000 in the aggregate in any fiscal
                  year; provided,  however,  that to the extent that the Company
                  shall have  reinvested on the date of such event (or certified
                  to the Agent that it intends  to  reinvest  within 360 days of
                  such event) any of such excess proceeds in equipment, vehicles
                  or other assets used in the Company's business,  the resultant
                  Prepayment  Event shall be reduced by the amount so reinvested
                  or to be reinvested (and provided,  further,  that any amounts
                  not so  reinvested  within 360 days  after such  certification
                  shall promptly be applied as Net Cash Proceeds of a Prepayment
                  Event and, during such time as any Default or Event of Default
                  has occurred and is  continuing,  shall be deposited in a cash
                  collateral account with the Agent until so applied); and

                           (iv)  the  receipt  of   Condemnation   Proceeds  and
                  Insurance  Proceeds  in respect of  Mortgaged  Property to the
                  extent  that  (A)  such  Condemnation  Proceeds  or  Insurance
                  Proceeds  are used to restore,  repair or locate,  acquire and
                  replace the related  Mortgaged  Property  in  accordance  with
                  subsection 18.8, (B) such  Condemnation  Proceeds or Insurance
                  Proceeds,  pursuant  to  subsection  18.8,  are not  otherwise
                  required to be applied as a mandatory  prepayment  pursuant to
                  subsection  10.2 or (C) to the extent  permitted by subsection
                  18.8, such Condemnation Proceeds or Insurance Proceeds are (1)
                  reinvested in equipment,  vehicles or other assets used in the
                  Company's  principal  lines of business  within 180 days after
                  the  receipt  thereof  and  (2)  the  Company,   pending  such
                  reinvestment,  has deposited such amounts in an escrow account
                  with (or otherwise  reasonably  satisfactory  to) the Agent as
                  contemplated in subsection 18.8.

                  "Primary  Obligations":  all amounts owing hereunder and under
         the other Loan Documents (other than the Unsecured  Supplemental  Loans
         and  the  principal  and  interest  owing  on  account  of the  Secured
         Supplemental  Loans) and all Lender Hedging  Obligations (as defined in
         the Security Documents).

                  "Prime  Rate":   the  rate  of  interest  per  annum  publicly
         announced from time to time by Chase as its prime rate in effect at its
         principal office in New York City (the Prime Rate not being intended to
         be the lowest  rate of  interest  charged by Chase in  connection  with
         extensions of credit to debtors).

                  "Properties":  as defined in subsection 11.16(a).

                  "Qualifying Lender":  at any time, a bank or other financial
          institution which is at that time either:

                     (a) a bank for  purposes  of  Section  349(3)(a)  of the UK
                  Income and Corporation Taxes Act 1988 which takes into account
                  any interest  payable or paid to it under this  Agreement as a
                  trading receipt of its business in the United Kingdom; or

                                       35
<PAGE>

                     (b)  resident  (as such term is defined in the  appropriate
                  double-taxation  treaty)  in a country  with  which the United
                  Kingdom  has  an  appropriate  double-taxation  treaty  giving
                  residents  of that  country  complete  exemptions  from United
                  Kingdom taxation on interest  including,  for the avoidance of
                  doubt,   complete   exemption   from  the  imposition  of  any
                  withholding  or deduction for or on account of United  Kingdom
                  taxation on interest  (and which does not carry on business in
                  the United  Kingdom  through a  permanent  establishment  with
                  which the  indebtedness  under  this  Agreement  in respect of
                  which the interest is paid is effectively connected) and which
                  has secured relief from United Kingdom  taxation in respect of
                  interest  and/or  commissions  to be  paid  to it  under  this
                  Agreement  pursuant  to such  treaty and for this  purpose the
                  term   "double-taxation   treaty"  means  any   convention  or
                  agreement between the government of the United Kingdom and any
                  other  government for the avoidance of double taxation and the
                  prevention  of fiscal  evasion with respect to taxes on income
                  and capital gains.

                  "Rate  Protection  Agreements":  mean any  interest  rate swap
         agreement,  interest rate cap agreement, interest rate collar agreement
         or similar agreement entered into by the Company to provide  protection
         to the Company and the  Subsidiaries  against  fluctuations in interest
         rates.  Each Rate  Protection  Agreement  shall be on terms  (including
         terms relating to the  calculation  of payments for early  termination)
         reasonably satisfactory to the Agent with a counterparty that is either
         a Lender or reasonably satisfactory to the Agent.

                  "Recapitalization":  (a) the  consummation of the transactions
         described in the "Transaction  Overview"  contained in Section 3 of the
         Confidential Information Memorandum and (b) the execution, delivery and
         performance  by the  Company and its  Subsidiaries  of each of the Loan
         Documents and the borrowings hereunder on the Closing Date.

                  "Recapitalization Documents":  (a) the Loan Documents and (b)
         each of the documents, instruments and agreements described in
         Schedule XV hereto.

                  "Reference Lenders":  Chase, Banque Nationale de Paris and
         Fleet National Bank.

                  "Refunded  Domestic  Swing Line Loans"  shall have the meaning
         assigned to such term in subsection 5.1(c).

                  "Refunded UK Swing Line Loans" shall have the meaning assigned
         to such term in subsection 8.1(c).

                  "Register":  as defined in subsection 18.6(d).

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

                                       36
<PAGE>

                  "Reimbursement  Obligation":  in  respect  of each  Letter  of
         Credit, the obligation of the account party thereunder to reimburse the
         Issuing  Bank for all  drawings  made  thereunder  in  accordance  with
         Section 4 and the Application related to such Letter of Credit.

                  "Release":  any spilling, leaking, pumping, pouring, emitting,
         emptying, discharging, injecting, escaping, leaching, dumping,
         disposing or depositing, or threat thereof, of any Hazardous Material
         in, into, onto or through the environment.

                  "Remedial  Action":  (a)  "remedial  action"  as such  term is
         defined  in  CERCLA,  42  U.S.C.  Section  9601(24),  and (b) all other
         actions   required  by  any   Governmental   Authority  or  voluntarily
         undertaken to (i) clean up,  remove,  treat,  abate or in any other way
         address any  Hazardous  Material in the  environment,  (ii) prevent the
         Release or threat of Release,  or minimize the further Release,  of any
         Hazardous  Material  so it does not  migrate or endanger or threaten to
         endanger public health,  welfare or the  environment,  or (iii) perform
         studies and investigations in connection with, or as a precondition to,
         actions described in clauses (i) or (ii) above.

                  "Remington Germany": Remington Products, GmbH.

                  "Reorganization":  with respect to any Multiemployer Plan, the
         condition that such plan is in reorganization within the meaning of
         Section 4241 of ERISA.

                  "Reportable Event":  any reportable event as defined in
         Section 4043 of ERISA or the regulations issued thereunder  with
         respect to a Plan (other than an event as to which the 30-day notice
         requirement has been waived).

                  "Required Lenders":  at any time, Lenders with aggregate
         Commitment Percentages of at least 51% at such time.

                  "Requirement  of Law": as to any Person,  the  Certificate  of
         Incorporation   and  By-Laws  or  other   organizational  or  governing
         documents of such Person,  and any law,  treaty,  rule or regulation or
         determination  of  an  arbitrator  or a  court  or  other  Governmental
         Authority,  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":  with respect to any Person, the chief
         executive officer,  the president or any vice president of such Person,
         or, with respect to financial  matters,  the chief financial officer or
         chief accounting officer of such Person.

                  "RPI":  RPI Corp., a Delaware corporation.

                  "RPI Consulting  Agreement":  the Consulting and  Transitional
         Services  Agreement,  dated as of the date  hereof,  among  RPI and the
         Company, as the same may be amended, supplemented or otherwise modified

                                       37
<PAGE>

         from  time to time in  accordance  with the  provisions  of  subsection
         14.11(b).

                  "Secured   Supplemental   Commitment":   as  to  any   Secured
         Supplemental Lender, the obligation of such Secured Supplemental Lender
         to make  Secured  Supplemental  Loans to the Company  hereunder  on the
         Supplemental  Closing Date in an aggregate  principal amount at any one
         time  outstanding  not to exceed  the amount  set forth  opposite  such
         Secured  Supplemental  Lender's  name on  Schedule I under the  heading
         "Secured Supplemental Commitments ", as such amount may be reduced from
         time to time in accordance with the provisions of this Agreement.

                  "Secured  Supplemental  Lender  ": at any  date,  each bank or
         other  financial  institution  which  holds  any  Secured  Supplemental
         Commitment   (or,  after  the   Supplemental   Closing  Date,   Secured
         Supplemental Loans); collectively, the "Secured Supplemental Lenders ".

                  "Secured Supplemental Loans ": as defined in subsection 9.1.

                  "Secured Supplemental Note " as defined in subsection 9.4(d).

                  "Security Agreements":  the collective reference to the
         Company Security Agreement, each Subsidiaries Security Agreement, each
         Subsidiaries Trademark Security Agreement, each Subsidiaries Patent
         Security Agreement and the UK Debenture.

                  "Security Documents":  the collective reference to the Company
         Mortgage, the Security Agreements,  the Lock Box Agreements, the Pledge
         Agreements, and all other security documents hereafter delivered to the
         Agent  granting  a Lien on any asset or assets of any  Person to secure
         the obligations and liabilities of the Company  hereunder and under any
         of the other  Loan  Documents  or to secure any  guarantee  of any such
         obligations and liabilities.

                  "Senior Leverage Ratio ": as of any date, shall mean the ratio
         of (a) the amount of Included Indebtedness as of such date minus Senior
         Subordinated  Indebtedness  to (b)  EBITDA  for the  period  of  twelve
         consecutive fiscal months ended on such date.

                  "Senior Subordinated Indebtedness": the $130,000,000 aggregate
         principal amount of the Company's senior subordinated indebtedness,  to
         be issued on the Closing Date  pursuant to the  Indenture,  dated as of
         May 23,  1996,  between the Company and  Remington  Capital  Corp.,  as
         co-issuers,  and The Bank of New York,  as trustee  (as the same may be
         amended,  supplemented  or  otherwise  modified  from  time  to time in
         accordance with the provisions of subsection 14.11(b)).

                  "Single Employer Plan":  any Plan which is covered by Title IV
         of ERISA, but which is not a Multiemployer Plan.

                                       38
<PAGE>

                  "Specified Obligation Usage": at any date, the amount equal to
         the sum of (a) the  aggregate  principal  amount of any purchase  money
         Indebtedness  then  outstanding  under  subsection  14.1(d),   (b)  the
         aggregate  principal  amount of Attributable  Debt then  outstanding in
         respect  of Sale  and  Leaseback  Transactions  permitted  pursuant  to
         subsection  14.4  and (c) the  aggregate  amount  then  outstanding  of
         Capital Lease Obligations permitted pursuant to subsection 14.12.

                  "Standby Letter of Credit":  as defined in subsection 4.1(b)
         (i).

                  "Statutory Reserves": a fraction (expressed as a decimal), the
         numerator  of which is the number one and the  denominator  of which is
         the number one minus the aggregate of the maximum  reserve  percentages
         (including any marginal,  special,  emergency or supplemental reserves)
         expressed as a decimal  established  by the Board or any other  banking
         authority,  domestic  or  foreign,  to which  the  Agent or any  Lender
         (including  any branch,  Affiliate,  or other funding  office making or
         holding a Loan) is subject for,  with respect to the  determination  of
         the  Adjusted  LIBO  Rate,  Eurocurrency  Liabilities  (as  defined  in
         Regulation D of the Board).  Such  reserve  percentages  shall  include
         (with  respect to  Eurodollar  Loans)  those  imposed  pursuant to such
         Regulation   D.   Eurodollar   Loans  shall  be  deemed  to  constitute
         Eurocurrency Liabilities and to be subject to such reserve requirements
         without benefit of or credit for proration,  exemptions or offsets that
         may be available from time to time to any Lender under such  Regulation
         D. Statutory Reserves shall be adjusted  automatically on and as of the
         effective date of any change in any reserve percentage.

                  "Sterling Base Rate":  the rate of interest per annum publicly
         announced  from  time to time by  Chase as its  base  lending  rate (or
         analogous  rate) in effect at its principal  office in London,  England
         (such base  lending  rate not being  intended  to be the lowest rate of
         interest  charged by Chase in connection  with  extensions of credit to
         debtors) plus 1/4 of 1%.

                  "Sterling Base Rate Loans":  any Loan bearing interest at a
         rate based upon the Sterling Base Rate.

                  "Subsidiaries Guarantees":  the Guarantees to be executed and
         delivered by (i) each Domestic Subsidiary and (ii) Remington Germany,
         substantially in the form of Exhibit D-1, as the same may be amended,
         supplemented or otherwise modified from time to time.

                  "Subsidiaries Pledge Agreements":  the Pledge Agreements to be
         executed and delivered  from time to time by each  Domestic  Subsidiary
         owning capital stock of any other Domestic Subsidiary, substantially in
         the form of Exhibit  D-2, as the same may be amended,  supplemented  or
         otherwise modified from time to time.

                  "Subsidiaries Patent Security Agreements": the Patent Security
         Agreements to be executed and delivered by each Domestic  Subsidiary in
         favor of the Agent,  substantially  in the form of Exhibit  D-5, as the

                                       39
<PAGE>

         same may be amended,  supplemented  or otherwise  modified from time to
         time.

                  "Subsidiaries Security Agreements": the Security Agreements to
         be executed and delivered by each  Domestic  Subsidiary in favor of the
         Agent,  substantially  in the form of Exhibit  D-3,  as the same may be
         amended, supplemented or otherwise modified from time to time.

                  "Subsidiaries  Trademark Security  Agreements":  the Trademark
         Security  Agreements  to be executed  and  delivered  by each  Domestic
         Subsidiary in favor of the Agent,  substantially in the form of Exhibit
         D-4, as the same may be amended,  supplemented  or  otherwise  modified
         from time to time.

                  "Subsidiary": as to any Person, a corporation,  partnership or
         other  entity  of which  shares of stock or other  ownership  interests
         having  ordinary voting power (other than stock or such other ownership
         interests  having  such  power  only by  reason of the  happening  of a
         contingency)  to elect a majority  of the board of  directors  or other
         managers of such  corporation,  partnership  or other entity are at the
         time  owned,  or the  management  of  which  is  otherwise  controlled,
         directly or indirectly through one or more intermediaries,  or both, by
         such Person (it being understood that, based upon present ownership and
         management   control,   Remington   Licensing   Corporation  is  not  a
         "Subsidiary"  of  the  Company).   Unless  otherwise   qualified,   all
         references to a  "Subsidiary"  or to  "Subsidiaries"  in this Agreement
         shall refer to a Subsidiary or Subsidiaries of the Company.

                  "Subsidiary   Debt  Basket   Amount":   the  amount  equal  to
         $17,500,000  plus any  additional  amounts  which,  after giving effect
         thereto,  would not cause the  Permitted  Excess Cash Flow Basket to be
         less than zero.

                  "Subsidiary   Obligations":   the  unpaid  principal  of,  and
         interest (including  post-petition interest) on, the UK Term Loans, the
         UK  Revolving  Credit  Loans and the UK Swing  Line Loans and all other
         obligations  and  liabilities  of the UK  Borrower to the Agent and the
         Lenders, whether direct or indirect,  absolute or contingent, due or to
         become due,  or now  existing or  hereafter  incurred,  which may arise
         under, out of, or in connection with this Agreement (including, without
         limitation,  any amendment and restatement or refinancing  hereof), the
         Notes or any other Loan Document,  or any other  document  executed and
         delivered in  connection  therewith or herewith,  whether on account of
         principal,  interest,  reimbursement  obligations,  fees,  indemnities,
         costs,   expenses   (including,   without  limitation,   all  fees  and
         disbursements of counsel to the Agent or any Lender) or otherwise.

                  "Supplemental Closing Date":  the date on which the conditions
         precedent set forth in the Sixth Amendment, dated as of June 9, 1999,
          to this Agreement shall be satisfied.

                                       40
<PAGE>

                  "Supplemental   Borrowing   Base":   as   of   any   date   of
         determination,  an amount equal to the sum, without duplication, of (a)
         85% of the Remington Germany accounts receivable, less any appropriate
         dilution reserve, for which title can be assigned to the Agent (on
         behalf of the Lenders) and (b) 60% of the Remington  Germany inventory
         against which there is no reservation of ownership, provided,  that the
         Agent,  in  consultation  with the  Company  has  determined  that such
         accounts  receivable  or  inventory  are  appropriately   eligible  for
         inclusion in the Supplemental Borrowing Base. In making such a
         determination  as  to  eligibility,   the Agent  shall
         consider the requirements for eligibility  included herein for Eligible
         UK Accounts and Eligible  UK  Inventory (with  appropriate
         changes  to  take  into  account  the  differences  in   jurisdiction),
         including the  requirements (x) that the  Agent for the
         benefit  of the  Lenders  and  itself  have a first  priority  security
         interest in or lien on such accounts  receivable  or inventory,  as the
         case may be,  securing  directly or by guarantee  the  obligations  and
         liabilities  of the  Company  under and in  respect  of this  Agreement
         pursuant to a Security Agreement and related documents  satisfactory to
         the  Agent and (y) that appropriate confirmatory opinions
         of counsel  with  respect to such  security  interest  or lien and such
         Security  Agreements  and related  documents  have been received by the
         Agent. In making any determination under this definition
         as to  eligibility,  the  Agent may conduct through its
         collateral  review  group  a  due  diligence  review  of  the  accounts
         receivable  and  inventory of  Remington  Germany.  The
         Agent,  in  consultation  with the Company,  may adjust the percentages
         or the eligibility criteria referred to in this definition in order to
         reflect  appropriate  credit practices.

                  "Supplemental  Domestic  Borrowing  Base":  at any  date,  the
         portion of the  Supplemental  Borrowing Base (expressed as a percentage
         thereof or as a maximum amount in Dollars of the Supplemental Borrowing
         Base not to exceed the  Supplemental  Borrowing  Base) specified by the
         Company as the Supplemental  Domestic Borrowing Base in its most recent
         notice  to  the    Agent  of  its   allocation  of  the
         Supplemental Borrowing Base between the Supplemental Domestic Borrowing
         Base and the  Supplemental  UK Borrowing  Base or, if more recent,  the
         most recent Domestic Borrowing Base Certificate. Any such notice may be
         given by the Company at any time and shall be effective upon receipt by
         the  Agent.  The Company may not make any change in the
         allocation of the Supplemental  Borrowing Base if as a result thereof a
         prepayment  would be required under  subsection  10.2(d) or (e), unless
         such prepayment is being made concurrently with such change.

                  "Supplemental Loans":  a Secured Supplemental Loan or an
         Unsecured Supplemental Loan, as the context shall require;
         collectively, the "Supplemental Loans".

                  "Supplemental UK Borrowing Base": at any date, the portion of
         the Supplemental Borrowing Base which is not the Supplemental Domestic
         Borrowing Base.

                                       41
<PAGE>

                  "Termination Date":  June 30, 2002.

                  "Tranche":  the  collective  reference to Eurodollar  Loans or
         Domestic  Sterling  Loans  under a single  Facility  the  then  current
         Interest  Periods  with  respect to all of which begin on the same date
         and end on the  same  later  date  (whether  or not  such  Loans  shall
         originally have been made on the same day).

                  "Transferee":  as defined in subsection 18.6(f).

                  "Type":  as to any Loan, its nature as an ABR Loan, a
         Eurodollar Loan, a Sterling Base Rate Loan or a Domestic Sterling Loan.

                  "UK Borrower":  as defined in the preamble.

                  "UK  Borrowing  Base":  as of any  date of  determination,  an
         amount equal to the sum, without duplication of (a) 85% of the total of
         Eligible  UK  Accounts  of the UK  Borrower as of such date less the UK
         Dilution  Reserve  then  in  effect  and  (b)  60% of the  Eligible  UK
         Inventory  of the UK  Borrower.  For  purposes  of  determining  the UK
         Borrowing Base from time to time,  Eligible UK Accounts and Eligible UK
         Inventory of the UK Borrower  shall be determined  from time to time by
         the Agent by reference to the UK Borrowing Base  Certificate  then most
         recently  delivered to it; provided that the  information  contained in
         such  UK  Borrowing  Base  Certificate   shall  not  be  conclusive  in
         calculating  the  amount  of  Eligible  UK  Accounts  and  Eligible  UK
         Inventory and, after consultation with the Company,  the Agent shall be
         entitled to adjust the amounts and other information  contained therein
         and/or the advance rates set forth above to the extent that it believes
         in its reasonable  credit  judgment that such adjustment is appropriate
         to reflect (x) the then current  amounts of Eligible UK  Inventory  and
         Eligible UK Accounts or (y) changes in the business practices of the UK
         Borrower   (or  newly   disclosed   matters   with   respect   to  it).
         Notwithstanding the foregoing, the UK Borrowing Base shall be increased
         by an amount equal to the Supplemental UK Borrowing Base.

                  "UK   Borrowing   Base   Certificate":   a   certificate,   in
         substantially  the form  attached  hereto  as  Exhibit  I-2,  with such
         changes as the Agent may from time to time  reasonably  request for the
         purpose of monitoring the UK Borrowing Base.

                  "UK  Debenture":  the Debenture,  dated as of the date hereof,
         given by the UK  Borrower  in favor  of the  Agent,  as the same may be
         amended, supplemented or otherwise modified from time to time.

                  "UK Dilution Factors":  with respect to the UK Borrower at any
         date, the aggregate  Pounds Sterling amount equal to the sum of (a) any
         credit memos,  adjustments,  returns, and allowances (such as for co-op
         advertising),  (b) cash discounts,  (c) bad debt write-offs,  (d) other
         non-cash  credits,  in each case applied to an Account Debtor's balance
         in respect of Accounts.

                                       42
<PAGE>

                  "UK Dilution Ratio":  at any date, the amount  (expressed as a
         percentage)  equal  to (a)  the  aggregate  amount  of the UK  Dilution
         Factors for the 12 most  recently  ended fiscal  months  divided by (b)
         total gross credit sales of the UK Borrower for such 12 fiscal months.

                  "UK Dilution Reserve":  with respect to the UK Borrower at any
         date, the amount equal to the UK Dilution Ratio times the amount of
         Eligible UK Accounts at such date.

                  "UK  Lender":  at any  date,  each  bank  or  other  financial
         institution  which  holds any UK Term Loan  Commitment  (or,  after the
         Closing  Date,  UK Term Loans) or UK Revolving  Credit Loan  Commitment
         (or,  at any time after the UK  Revolving  Credit Loan  Commitment  has
         terminated,  UK Revolving Credit Exposure) on such date;  collectively,
         the "UK Lenders".

                  "UK Loan": a UK Revolving  Credit Loan or UK Term Loan, as the
         context shall require; collectively, the "UK Loans."

                  "UK Revolving  Credit  Commitment":  as to any UK Lender,  the
         obligation of such UK Lender to make UK Revolving  Credit Loans to, and
         to participate in UK Swing Line Loans to, the UK Borrower  hereunder in
         an aggregate principal amount at any one time outstanding not to exceed
         the amount set forth opposite such UK Lender's name on Schedule I under
         the heading "UK Revolving  Credit  Commitments",  as such amount may be
         reduced from time to time in  accordance  with the  provisions  of this
         Agreement.

                  "UK Revolving Credit Exposure":  at any date, (a) as to all UK
         Lenders, the amount equal to the aggregate outstanding principal amount
         of all UK  Revolving  Credit  Loans and all UK Swing  Line  Loans  then
         outstanding  and (b) as to any UK Lender,  the amount  equal to (i) the
         aggregate  outstanding  principal  amount  of all  then-outstanding  UK
         Revolving Credit Loans made by such UK Lender and (ii) such UK Lender's
         Commitment  Percentage of the then-outstanding  principal amount of all
         UK Swing Line Loans.

                  "UK Revolving Credit Loans":  as defined in subsection 7.1.

                  "UK Revolving Credit Note":  as defined in subsection 7.4(d).

                  "UK Swing Line  Commitment" of the UK Swing Line Lender at any
         date shall mean the  obligation  of the UK Swing Line Lender to make UK
         Swing Line Loans pursuant to subsection  8.1 in the amount  referred to
         therein.

                  "UK Swing Line Lender" shall mean Chase.

                  "UK Swing Line Loan  Participation  Certificate"  shall mean a
         certificate, substantially in the form of Exhibit J-2.

                                       43
<PAGE>

                  "UK Swing Line Loans" shall have the meaning  assigned to such
         term in subsection 8.1(a).

                  "UK Swing Line Note" shall have the  meaning  assigned to such
         term in subsection 8.1(b).

                  "UK Term Loan Commitment": as to any UK Lender, the obligation
         of such UK Lender to make UK Term Loans to the UK Borrower hereunder in
         an aggregate principal amount at any one time outstanding not to exceed
         the amount set forth opposite such UK Lender's name on Schedule I under
         the heading "UK Term Loan  Commitments",  as such amount may be reduced
         from time to time in accordance with the provisions of this Agreement.

                  "UK Term Loans":  as defined in subsection 6.1.

                  "UK Term Loan Note":  as defined in subsection 6.4(d).

                  "Uniform Customs@:  the Uniforms Customs and Practice for
         Documentary Credits (1993 Revision), International Chamber of Commerce
         Publication No. 500, as the same may be amended from time to time.

                  "Unsecured  Supplemental  Commitment  ":  as to any  Unsecured
         Supplemental  Lender,  the  obligation of such  Unsecured  Supplemental
         Lender to make Unsecured Supplemental Loans to the Company hereunder on
         the Supplemental  Closing Date in an aggregate  principal amount at any
         one time  outstanding  not to exceed the amount set forth opposite such
         Unsecured  Supplemental  Lender's  name on Schedule I under the heading
         "Unsecured  Supplemental  Commitments",  as such  amount may be reduced
         from time to time in accordance with the provisions of this Agreement.

                  "Unsecured  Supplemental  Lender ": at any date,  each bank or
         other  financial  institution  which holds any  Unsecured  Supplemental
         Commitment  (or,  after  the  Supplemental   Closing  Date,   Unsecured
         Supplemental Loans); collectively,  the "Unsecured Supplemental Lenders
         ."

                  "Unsecured Supplemental Loans ": as defined in subsection 9.2.

                  "Unsecured  Supplemental  Note ":  as  defined  in  subsection
         9.4(e).

                  "Vestar":  Vestar Equity Partners, L.P.

                  "Vestar Guarantee":  each Guarantee, dated as of June 9, 1999,
         made by Vestar Equity Partners, L.P. in favor of an Unsecured
         Supplemental Lender, as the same may be amended, supplemented or
         otherwise modified from time to time.

                                       44
<PAGE>

                  "Vestar Management Agreement": the Management Agreement, dated
         as of the date hereof,  among Vestar Capital Partners,  the Company and
         certain of its Subsidiaries,  as the same may be amended,  supplemented
         or  otherwise  modified  from  time  to  time in  accordance  with  the
         provisions of subsection 14.11(b).

                  "Withdrawal Liability":  the liability to a Multiemployer
         Plan, as defined in Section 4201 of ERISA.

                  1.2Other   Definitional   Provisions.   (a)  Unless  otherwise
specified  therein,  all terms defined in this Agreement  shall have the defined
meanings  when used in any  other  Loan  Document  or any  certificate  or other
document made or delivered pursuant hereto.

                  (b) As used  herein  and in any other Loan  Document,  and any
certificate  or  other  document  made  or  delivered  pursuant  hereto,  unless
otherwise specified herein or therein,  accounting terms relating to the Company
and its  Subsidiaries  not defined in subsection 1.1 and accounting terms partly
defined in subsection 1.1, to the extent not defined,  shall have the respective
meanings given to them under GAAP.

                  (c) The words "hereof",  "herein" and "hereunder" and words of
similar  import when used in this  Agreement  shall refer to this Agreement as a
whole  and not to any  particular  provision  of this  Agreement,  and  Section,
subsection,  Schedule  and  Exhibit  references  are to  this  Agreement  unless
otherwise specified.

                  (d) The  meanings  given  to  terms  defined  herein  shall be
equally applicable to both the singular and plural forms of such terms.

                  (e) For purposes of calculating amounts hereunder,  any amount
which is owing or  denominated  in a  currency  other  than  Dollars  or  Pounds
Sterling and required to be paid or expressed in Dollars or Pounds Sterling,  as
the  case  may  be,  shall  be  converted  into  Dollars  or  Pounds   Sterling,
respectively,  at the  exchange  rate set  forth  on the  date as of which  such
calculation  is made in The Wall  Street  Journal as the spot rate at which such
currency can be converted into Dollars or Pounds Sterling,  respectively (or, if
no such rate is published, at any rate determined by the Agent in its reasonable
discretion).

                  (f) As used  herein,  the  terms  "corporation"  and  "limited
liability  company"  shall mean any  business  entity,  regardless  of structure
(including,  without limitation,  partnerships,  limited liability companies and
business  trusts);  the terms  "stockholders"  and "members" with respect to any
particular  business  entity shall mean any Persons with ownership  interests in
such business  entity,  regardless of  structure;  and  references to particular
types of  organizational  documents of a particular  business entity,  such as a
certificate  of  incorporation  and  by-laws  or  a  limited  liability  company
agreements,  shall mean all  organizational  documents of such business  entity,
regardless of structure.

                                       45
<PAGE>

                       SECTION 2. THE DOMESTIC TERM LOANS

                  2.1Domestic  Term Loans.  Subject to the terms and  conditions
hereof,  each Domestic Lender  severally agrees to make a term loan (a "Domestic
Term Loan") to the  Company on the Closing  Date in an amount not to exceed each
such Domestic  Lender's  Domestic Term Loan Commitment.  The Domestic Term Loans
shall be made in Dollars and may from time to time be (a) Eurodollar  Loans, (b)
ABR Loans or (c) a  combination  thereof,  as  determined  by the Company in the
initial notice of borrowing or in any notice of conversion with respect thereto.

                  2.2Procedure  for Domestic  Term Loan  Borrowing.  The Company
shall give the Agent  irrevocable  notice  (which notice must be received by the
Agent prior to 11:00 A.M.,  New York City time, on the Closing Date)  requesting
that the Domestic Lenders make the Domestic Term Loans on the Closing Date. Upon
receipt  of any such  notice of  borrowing  from the  Company,  the Agent  shall
promptly  notify each Domestic Lender of receipt of such notice of borrowing and
of such Domestic Lender's Commitment Percentage of the Domestic Term Loans to be
made pursuant thereto. Each Domestic Lender will make the amount of its pro rata
share of the  borrowing  of Domestic  Term Loans  available to the Agent for the
account of the Company at the office of the Agent  specified in subsection  18.2
prior  to  12:00  Noon,  New  York  City  time,  on the  Closing  Date in  funds
immediately  available to the Agent.  Such borrowing will then be made available
to the Company by the Agent crediting the account of the Company on the books of
such office with the aggregate of the amounts made available to the Agent by the
Domestic  Lenders and in like funds as  received  by the Agent.  Notwithstanding
anything to the contrary  contained  herein,  the Domestic Term Loans  initially
shall be made as ABR Loans hereunder.

                 2.3 Amortization of Domestic Term Loans. (a) The Company hereby
unconditionally  promises to pay to the Agent,  for the account of the  Domestic
Lenders,  on each date set forth below the principal amount of the Domestic Term
Loans set forth opposite such date:

                                  Date                            Amount

                         September 30, 1996                    $  125,000
                         December 31, 1996                        125,000
                         March 31, 1997                           125,000
                         June 30, 1997                            125,000
                         September 30, 1997                       125,000
                         December 31, 1997                        125,000
                         March 31, 1998                           125,000
                         June 30, 1998                            125,000
                         September 30, 1998                       187,500
                         December 31, 1998                        187,500
                         March 31, 1999                           187,500
                         June 30, 1999                            187,500
                         September 30, 1999                       187,500
                         December 30, 1999                        187,500

                                       46
<PAGE>

                         March 30, 2000                           187,500
                         June 30, 2000                            187,500
                         September 30, 2000                       250,000
                         December 31, 2000                        250,000
                         March 31, 2001                           250,000
                         June 30, 2001                            250,000
                         September 30, 2001                       500,000
                         December 31, 2001                        500,000
                         March 31, 2002                           500,000

                  (b)  The  Company  hereby   unconditionally  agrees  that  any
then-outstanding Domestic Term Loans shall be due and payable on the Termination
Date.
                  (c) The Company  hereby  agrees to pay  interest on the unpaid
principal  amount of the Domestic Term Loans from time to time  outstanding from
the date hereof until payment in full thereof at the rates per annum, and on the
dates, set forth in subsection 10.5.

                  2.4 Evidence of Debt. (a) Each Domestic  Lender shall maintain
in  accordance  with its  usual  practice  an  account  or  accounts  evidencing
indebtedness of the Company to such Domestic Lender resulting from each Domestic
Term Loan of such  Domestic  Lender from time to time,  including the amounts of
principal  and interest  payable and paid to such  Domestic  Lender from time to
time under this Agreement.

                  (b)  The  Agent  shall  maintain  the  Register   pursuant  to
subsection 18.6(d),  and a subaccount therein for each Domestic Lender, in which
shall be recorded (i) the amount of each Domestic  Term Loan made  hereunder and
each  Interest  Period  (if any)  applicable  thereto,  (ii) the  amount  of any
principal  or interest  due and  payable or to become due and  payable  from the
Company to each  Domestic  Lender  under the  Domestic  Term Loans and (iii) the
amount of any sum received by the Agent from the Company in respect of principal
of or  interest on the  Domestic  Term  Loans,  and the amount of each  Domestic
Lender's share thereof.

                  (c) The entries  made in the Register and the accounts of each
Domestic Lender  maintained  pursuant to subsection  2.4(a) shall, to the extent
permitted  by  applicable  law, be prima facie  evidence  of the  existence  and
amounts of the obligations of the Company therein recorded;  provided,  however,
that the failure of any Domestic Lender or the Agent to maintain the Register or
any such  account,  or any error  therein,  shall not in any  manner  affect the
obligation of the Company to repay (with applicable  interest) the Domestic Term
Loan made to the Company by such Domestic Lender in accordance with the terms of
this Agreement.

                  (d) The Company agrees that,  upon the request to the Agent by
any  Domestic  Lender,  the Company  will  execute and deliver to such  Domestic
Lender a promissory  note of the Company  evidencing  the Domestic  Term Loan of
such Domestic Lender, substantially in the form of Exhibit A-1, with appropriate
insertions as to date and principal amount (a "Domestic Term Loan Note").

                                       47
<PAGE>

                  2.5 Use of Proceeds of Domestic Term Loans.  The Domestic Term
Loans  shall  be  used on the  Closing  Date to  finance  the  Recapitalization,
including  distributions to be made on the Closing Date as contemplated thereby,
and to pay fees and  expenses  incurred  in  connection  therewith  and with the
financings contemplated thereby.

                                       48
<PAGE>

                 SECTION 3. THE DOMESTIC REVOLVING CREDIT LOANS

                  3.1 Domestic Revolving Credit Loans.  Subject to the terms and
conditions  hereof,  each Domestic  Lender  severally  agrees to make loans on a
revolving credit basis  ("Domestic  Revolving Credit Loans") to the Company from
time to time during the Commitment Period;  provided, that no Domestic Revolving
Credit Loan shall be made if, after giving effect to the making of such Loan and
the simultaneous  application of the proceeds  thereof,  the aggregate amount of
the Domestic  Revolving Credit Exposure of all the Domestic Lenders would exceed
the  lesser  of (i)  the  aggregate  amount  of the  Domestic  Revolving  Credit
Commitments  and (ii) the  Domestic  Borrowing  Base  then in  effect  minus the
aggregate  principal amount outstanding of the Incremental Dollar Loans.
Amounts borrowed by the Company under this subsection 3.1 may be repaid in whole
or in part  and,  up to but  excluding  the last day of the  Commitment  Period,
reborrowed, all in accordance with the terms and conditions hereof. The Domestic
Revolving Credit Loans shall be made in Dollars and may from time to time be (i)
Eurodollar Loans, (ii) ABR Loans or (iii) a combination  thereof,  as determined
by the Company and set forth in the notice of borrowing or notice of  conversion
with respect thereto;  provided, that (x) no Eurodollar Loan shall be made after
the day that is one month  prior to the  Termination  Date and (y) any  Domestic
Revolving  Credit Loans to be made on the Closing Date shall be made entirely as
ABR Loans.

                  3.2 Procedure for Domestic  Revolving  Credit Loan  Borrowing.
The  Company  shall give the Agent  irrevocable  notice  (which  notice  must be
received by the Agent prior to 11:00 A.M.,  New York City time,  three  Business
Days prior to the  requested  borrowing  date,  with  respect to the part of the
Domestic Revolving Credit Loans that are to be initially Eurodollar Loans or one
Business Day prior to the requested borrowing date,  otherwise)  requesting that
the Domestic  Lenders make the Domestic  Revolving Credit Loans specified in the
notice of borrowing in respect  thereof on the requested  borrowing  date.  Each
borrowing of Domestic  Revolving Credit Loans shall be in an amount equal to (a)
in the case of ABR Loans, (x) $500,000 or a whole multiple of $100,000 in excess
thereof (or, if the then  aggregate  undrawn  amount of the  Domestic  Revolving
Credit Commitments is less than $500,000, such lesser amount), (y) the principal
amount of Refunded  Domestic  Swing Line Loans,  if made  pursuant to subsection
5.1(c),  or (z) the  amount set forth in  subsection  4.5(c),  if made  pursuant
thereto, and (b) in the case of Eurodollar Loans, $1,000,000 or a whole multiple
of $100,000 in excess thereof. Upon receipt of any such notice of borrowing from
the Company,  the Agent shall promptly notify each Domestic Lender of receipt of
such  notice of  borrowing.  Subject to the terms and  conditions  hereof,  each
Domestic  Lender will make the amount of its pro rata share of each borrowing of
Domestic  Revolving  Credit Loans  available to the Agent for the account of the
Company at the office of the Agent  specified in subsection  18.2 prior to 12:00
Noon,  New York City time,  on the  borrowing  date  requested by the Company in
funds  immediately  available  to the Agent.  Such  borrowing  will then be made
available  to the Company by the Agent  crediting  the account of the Company on
the books of such office with the aggregate of the amounts made available to the

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<PAGE>

Agent by the Domestic Lenders and in like funds as received by the Agent.

                  3.3  Repayment of Domestic  Revolving  Credit  Loans.  (a) The
Company hereby unconditionally  promises to pay to the Agent, for the account of
the Domestic  Lenders,  on the Termination  Date all amounts owing on account of
the Domestic Revolving Credit Loans;  provided,  however,  that voluntary
repayment of the Domestic Revolving Credit Loans is subject to the provisions of
Section 3A.3(a).

                  (b) The Company  hereby  agrees to pay  interest on the unpaid
principal  amount  of the  Domestic  Revolving  Credit  Loans  from time to time
outstanding  from the date hereof until payment in full thereof at the rates per
annum, and on the dates, set forth in subsection 10.5.

                  3.4 Evidence of Debt. (a) Each Domestic  Lender shall maintain
in  accordance  with its  usual  practice  an  account  or  accounts  evidencing
indebtedness of the Company to such Domestic Lender resulting from each Domestic
Revolving  Credit Loan of such Domestic Lender from time to time,  including the
amounts of principal and interest  payable and paid to such Domestic Lender from
time to time under this Agreement.

                  (b)  The  Agent  shall  maintain  the  Register   pursuant  to
subsection 18.6(d),  and a subaccount therein for each Domestic Lender, in which
shall be recorded  (i) the amount of each  Domestic  Revolving  Credit Loan made
hereunder and each Interest Period (if any) applicable thereto,  (ii) the amount
of any  principal  or interest due and payable or to become due and payable from
the Company to each Domestic  Lender under Domestic  Revolving  Credit Loans and
(iii) the amount of any sum received by the Agent from the Company in respect of
principal of or interest on the Domestic  Revolving Credit Loans, and the amount
of each Domestic Lender's share thereof.

                  (c) The entries  made in the Register and the accounts of each
Domestic Lender  maintained  pursuant to subsection  3.4(a) shall, to the extent
permitted  by  applicable  law, be prima facie  evidence  of the  existence  and
amounts of the obligations of the Company therein recorded;  provided,  however,
that the failure of any Domestic Lender or the Agent to maintain the Register or
any such  account,  or any error  therein,  shall not in any  manner  affect the
obligation  of the  Company to repay (with  applicable  interest)  the  Domestic
Revolving Credit Loans made to the Company by such Domestic Lender in accordance
with the terms of this Agreement.

                  (d) The Company agrees that,  upon the request to the Agent by
any  Domestic  Lender,  the Company  will  execute and deliver to such  Domestic
Lender a promissory note of the Company evidencing the Domestic Revolving Credit
Loans of such Domestic  Lender,  substantially  in the form of Exhibit A-2, with
appropriate  insertions as to date and principal  amount (a "Domestic  Revolving
Credit Note").

                  3.5 Use of Proceeds of Domestic  Revolving  Credit Loans.  The
Domestic Revolving Credit Loans shall be used from time to time (a) to finance a
portion of the  Recapitalization  and to pay fees, to refinance certain existing

                                       50
<PAGE>

working  capital  Indebtedness  and to pay expenses in connection  therewith and
with the financing thereof (provided that not more than $40,000,000 in aggregate
principal  amount of the Domestic  Revolving  Credit Loans shall be utilized for
the  purposes  described  in  this  clause  (a)),  (b) to  finance  closing  and
post-closing adjustments payable under the Recapitalization Documents related to
adjustments in working capital and (c) for working capital and general corporate
purposes of the  Company and its  Subsidiaries  (except any  purchase,  lease or
other  acquisition of all or substantially all of the Capital Stock or assets of
any entity (other than any Subsidiary) or any division thereof).

                  SECTION  3A. THE INCREMENTAL LOANS

     3A.1  Incremental  Loans.  (a) Subject to the terms and conditions  hereof,
each  Incremental  Dollar Lender  severally agrees to make loans in Dollars on a
revolving credit basis to the Company  ("Incremental Dollar Loans") from time to
time during the period from August 18,  2000 to and  including  the  Incremental
Commitment Termination Date; provided,  that no Incremental Dollar Loan shall be
made if,  after  giving  effect to the making of such Loan and the  simultaneous
application of the proceeds thereof,  (i) the sum of the aggregate amount of the
Domestic Revolving Credit Exposure of all the Domestic Lenders and the aggregate
principal  amount  outstanding of the Incremental  Dollar Loans would exceed the
Domestic  Borrowing Base then in effect or (ii) the aggregate  principal  amount
outstanding of the Incremental  Dollar Loans would exceed the Incremental Dollar
Credit Commitments;  and provided,  further, that the making of each Incremental
Dollar Loan shall be subject to the  Domestic  Revolving  Credit  Commitments  ,
being fully utilized  (except to the extent a portion  thereof may be reasonably
reserved by the Borrower to meet its expected  requirements for the issuances of
Letters of Credit.) Amounts borrowed under this subsection 3A.1(a) may be repaid
in  whole  or in  part  and,  up to but  excluding  the  Incremental  Commitment
Termination  Date,  reborrowed,  all in accordance with the terms and conditions
hereof.  The  Incremental  Dollar Loans may from time to time be (i)  Eurodollar
Loans,  (ii) ABR Loans or (iii) a  combination  thereof,  as  determined  by the
Company and set forth in the notice of  borrowing or notice of  conversion  with
respect thereto;  provided,  that (x) no Eurodollar Loan shall be made after the
day that is one month prior to the Incremental  Commitment  Termination Date and
(y) any  Incremental  Dollar  Loans to be made on August 18,  2000 shall be made
entirely as ABR Loans.

     (b) Subject to the terms and conditions hereof,  each Incremental  Sterling
Lender  severally  agrees to make loans in Pounds Sterling on a revolving credit
basis to the UK Borrower  ("Incremental  Sterling Loans" and,  together with the
Incremental Dollar Loans, the "Incremental  Loans") from time to time during the
period  from  August  18,  2000  to and  including  the  Incremental  Commitment

                                       51
<PAGE>

Termination Date; provided,  that no Incremental Sterling Loan shall be made if,
after giving effect to the making of such Loan and the simultaneous  application
of the proceeds thereof, (i) the sum of the aggregate principal amount of the UK
Revolving  Credit  Exposure  of all the UK Lenders and the  aggregate  principal
amount  outstanding  of the  Incremental  Sterling  Loans  would  exceed  the UK
Borrowing  Base  then  in  efffect  or  (ii)  the  aggregate   principal  amount
outstanding  of the  Incremental  Sterling  Loans would  exceed the Incremental
Sterling  Credit  Commitments;  and provided,  further,  that the making of each
Incremental   Sterling  Loan  shall  be  subject  to  the  UK  Revolving  Credit
Commitments being fully utilized. Amounts borrowed under this subsection 3A.1(b)
may be repaid  in whole or in part  and,  up to but  excluding  the  Incremental
Commitment  Termination Date,  reborrowed,  all in accordance with the terms and
conditions hereof.  The Incremental  Sterling Loans may from time to time be (i)
Domestic  Sterling  Loans,  (ii) Sterling Base Rate Loans or (iii) a combination
thereof,  as  determined  by the UK  Borrower  and set  forth in the  notice  of
borrowing or notice of conversion with respect  thereto;  provided,  that (x) no
Domestic  Sterling  Loan shall be made after the day that is one month  prior to
the Incremental  Commitment  Termination  Date and (y) any Incremental  Sterling
Loans to be made on August 18, 2000 shall be made entirely as Sterling Base Rate
Loans.

     3A.2 Procedure for Incremental  Loan Borrowing.  (a) The Company shall give
the Agent at the office of the Agent specified in subsection  18.2,  irrevocable
notice (which notice must be received by the Agent prior to 11:00 A.M., New York
City time,  three  Business Days prior to the  requested  borrowing  date,  with
respect to the part of the  Incremental  Dollar  Loans that are to be  initially
Eurodollar  Loans or one Business  Day prior to the  requested  borrowing  date,
otherwise)  requesting that the Incremental  Dollar Lenders make the Incremental
Dollar Loans  specified  in the notice of  borrowing  in respect  thereof on the
requested borrowing date. Each borrowing of Incremental Dollar Loans shall be in
an  amount  equal  to (i) in the  case of ABR  Loans,  (x)  $500,000  or a whole
multiple of $100,000 in excess thereof (or, if the then aggregate undrawn amount
of the Incremental Dollar Credit Commitments is less than $500,000,  such lesser
amount),  and  (ii)  in the  case of  Eurodollar  Loans,  $1,000,000  or a whole
multiple  of  $100,000  in excess  thereof.  Upon  receipt of any such notice of
borrowing  from the Company,  the Agent shall promptly  notify each  Incremental
Dollar Lender of receipt of such notice of  borrowing.  Subject to the terms and
conditions  hereof,  each Incremental  Dollar Lender will make the amount of its
pro rata share of each  borrowing of Incremental  Dollar Loans  available to the
Agent for the  account of the  Company at the office of the Agent  specified  in
subsection  18.2 prior to 12:00 Noon,  New York City time, on the borrowing date
requested  by the  Company in funds  immediately  available  to the Agent.  Such
borrowing will then be made available to the Company by the Agent  crediting the
account of the  Company on the books of such office  with the  aggregate  of the
amounts made  available to the Agent by the  Incremental  Dollar  Lenders and in
like funds as received by the Agent; or

     (b) The UK  Borrower  shall  give the  Agent,  at the  office  of the Agent
specified in subsection 18.2,  irrevocable notice (which notice must be received
by the Agent prior to 11:00 A.M., London England time, three Business Days prior
to the requested  borrowing  date,  with respect to the part of the  Incremental
Sterling Loans that are to be initially  Domestic Sterling Loans or two Business
Days prior to the  requested  borrowing  date,  otherwise)  requesting  that the

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<PAGE>

Incremental  Sterling  Lenders make the Incremental  Sterling Loans specified in
the notice of borrowing in respect thereof on the requested borrowing date. Each
borrowing of  Incremental  Sterling  Loans shall be in an amount equal to (i) in
the case of Sterling Base Rate Loans,  350,000 or a whole multiple of 100,000 in
excess  thereof  (or if the then  aggregate  undrawn  amount of the  Incremental
Sterling Credit Commitment is less than 350,000,  such lesser amount),  and (ii)
in the case of Domestic  Sterling Loans,  750,000 or a whole multiple of 100,000
in excess  thereof.  Upon  receipt of any such notice of  borrowing  from the UK
Borrower,  the Agent shall promptly notify each  Incremental  Sterling Lender of
receipt of such notice of borrowing. Subject to the terms and conditions hereof,
each  Incremental  Sterling Lender will make the amount of its pro rata share of
each  borrowing of  Incremental  Sterling  Loans  available to the Agent for the
account of the UK Borrower at the office of the Agent  specified  in  subsection
18.2 prior to 12:00 Noon, London,  England time, on the borrowing date requested
by the UK Borrower in funds  immediately  available to the Agent. Such borrowing
will  then be made  available  to the UK  Borrower  by the Agent  crediting  the
account of the UK Borrower on the books of such office with the aggregate of the
amounts made available to the Agent by the Incremental  Sterling  Lenders and in
like funds as received by the Agent.

     3A.3  Repayment of Incremental  Loans.  (a) The Company and the UK Borrower
hereby  unconditionally  promise  to pay to the  Agent,  for the  account of the
Incremental Lenders, on the Incremental  Commitment Termination Date all amounts
owing on account of the Incremental  Dollar Loans and the  Incremental  Sterling
Loans,respectively.  Incremental  Dollar  Loans shall be paid or prepaid in full
before any  voluntary  prepayment  is made on account of any Domestic  Revolving
Credit Loans, unless such voluntary  prepayment is made to enable the Company to
request  the  issuance  of  additional  Letters  of Credit  under  the  Domestic
Revolving Credit Commitment. Incremental Sterling Loans shall be paid or prepaid
in full before any  voluntary  prepayment is made on account of any UK Revolving
Credit Loans.

     (b) The  Company and the UK Borrower  hereby  agree to pay  interest on the
unpaid  principal  amount of the  Incremental  Dollar Loans and the  Incremental
Sterling Loans, respectively, from time to time outstanding from the date hereof
until  payment in full  thereof at the rates per  annum,  and on the dates,  set
forth in subsection 10.5.

     3A.4  Evidence  of Debt.  (a) Each  Incremental  Lender  shall  maintain in
accordance   with  its  usual   practice  an  account  or  accounts   evidencing
indebtedness  of the  Company  or the UK  Borrower,  as the case may be, to such
Incremental  Lender resulting from each  Incremental  Dollar Loan or Incremental
Sterling Loan, as the case may be, of such Incremental Lender from time to time,
including  the  amounts  of  principal  and  interest  payable  and paid to such
Incremental Lender from time to time under this Agreement.

     (b) The Agent shall maintain the Register  pursuant to subsection  18.6(d),
and a subaccount therein for each Incremental Lender, in which shall be recorded
(i) the amount of each Incremental Dollar Loan or Incremental  Sterling Loan, as
the case may be, made  hereunder  and each Interest  Period (if any)  applicable
thereto,  (ii) the amount of any  principal  or  interest  due and payable or to

                                       53
<PAGE>

become due and payable from the Company or the UK Borrower,  as the case may be,
to each  Incremental  Lender  under  Incremental  Dollar  Loans  or  Incremental
Sterling  Loans, as the case may be, and (iii) the amount of any sum received by
the Agent from the  Company or the  Borrower,  as the case may be, in respect of
principal of or interest on the Incremental Dollar Loans or Incremental Sterling
Loans,  as the case may be, and the amount of each  Incremental  Lender's  share
thereof.

     (c) The entries made in the  Register and the accounts of each  Incremental
Lender maintained  pursuant to subsection 3A.4(a) shall, to the extent permitted
by applicable  law, be prima facie  evidence of the existence and amounts of the
obligations  of the  Company  or the UK  Borrower,  as the case may be,  therein
recorded;  provided,  however, that the failure of any Incremental Lender or the
Agent to maintain the Register or any such account, or any error therein,  shall
not in any manner affect the  obligation  of the Company or the UK Borrower,  as
the case may be, to repay (with  applicable  interest)  the  Incremental  Dollar
Loans  or  Incremental  Sterling  Loans,  as the  case  may  be,  made  by  such
Incremental Lender in accordance with the terms of this Agreement.

     (d) The  Company and the UK  Borrower  agree that,  upon the request to the
Agent by any Incremental Lender, the Company or the UK Borrower, as the case may
be, will execute and deliver to such Incremental Lender a promissory note of the
Company  or the UK  Borrower,  as the case may be,  evidencing  the  Incremental
Dollar  Loans  or  Incremental  Sterling  Loans,  as the  case  may be,  of such
Incremental Lender,  substantially in the form of Exhibit A-5C, with appropriate
insertions as to date and principal amount (a "Incremental Note").

                  3A.5 Use of Proceeds of  Incremental  Loans.  The  Incremental
Loans  shall be used  from  time to time to fund  capital  expenditures  and for
working  capital  and  general  corporate   purposes  of  the  Company  and  its
Subsidiaries,  and the UK Borrower and its  Subsidiaries  (except any  purchase,
lease or other  acquisition of all or substantially  all of the Capital Stock or
assets of any entity (other than any Subsidiary) or any division thereof).

                    SECTION 4. LETTER OF CREDIT SUB-FACILITY

                  4.1 L/C  Commitment.  (a) Subject to the terms and  conditions
hereof,  each Issuing Bank agrees to issue  letters of credit for the account of
the Company on any  Business  Day during the  Commitment  Period in such form as
shall be reasonably  acceptable to such Issuing Bank; provided that no Letter of
Credit shall be issued if, after giving effect thereto (i) the aggregate  amount
of the Domestic  Revolving  Credit  Exposure of all the Domestic  Lenders  would
exceed the lesser of (A) the aggregate  amount of the Domestic  Revolving Credit
Commitments  or (B) the  Domestic  Borrowing  Base  then  in  effect  minus  the
aggregate  principal amount  outstanding of the Incremental Dollar Loans
or (ii)  the  aggregate  amount  of the L/C  Obligations  would  exceed  the L/C
Commitment then in effect.

                  (b)  Each Letter of Credit shall:

                                       54
<PAGE>

(i)      be  denominated  in Dollars and shall be either (A) a standby letter of
         credit  issued to  support  obligations  of the  Company  or any of its
         Subsidiaries,  contingent or otherwise,  to provide  credit support for
         workers'  compensation,  other  insurance  programs  and  other  lawful
         corporate  purposes (a "Standby  Letter of Credit") or (B) a commercial
         letter  of  credit  issued  in  respect  of the  purchase  of goods and
         services  in the  ordinary  course of  business  of the Company and its
         Subsidiaries  (a  "Commercial  Letter  of  Credit";  together  with the
         Standby Letters of Credit, the "Letters of Credit"); and

(ii)     expire no later than the earlier of 365 days after its date of issuance
         and 5 Business Days prior to the Termination Date; provided that unless
         the relevant  Issuing  Bank  notifies the Company not less than 30 days
         prior to the expiry of such Letter of Credit that such  Issuing Bank is
         not willing to extend it, any such Letter of Credit may by its terms be
         automatically  extended for periods of one year from the current or any
         future expiration date thereof (but not to any date which is later than
         5 Business Days prior to the Termination Date).

                  (c) Each  Letter of Credit  shall be  subject  to the  Uniform
Customs and, to the extent not inconsistent therewith,  the laws of the State of
New York.

                  (d) No Issuing  Bank shall at any time be obligated to issue a
Letter of Credit  hereunder if such issuance  would conflict with, or cause such
Issuing  Bank or any  Domestic  Lender to exceed  any  limits  imposed  by,  any
applicable Requirement of Law.

                  4.2  Procedure  for  Issuance of Letters of Credit  under this
Agreement.  The Company may from time to time request that an Issuing Bank issue
a Letter of Credit by  delivering  to such Issuing Bank at its office  listed on
Schedule II or otherwise notified to the Company an Application therefor (with a
copy to the Agent), completed to the satisfaction of such Issuing Bank, and such
other  certificates,  documents and other papers and information as such Issuing
Bank  may  reasonably  request.  Upon  receipt  by  such  Issuing  Bank  of  any
Application,  and subject to the terms and conditions hereof,  such Issuing Bank
will process such Application and the  certificates,  documents and other papers
and information  delivered to it in connection  therewith in accordance with its
customary  procedures and shall  promptly  issue the Letter of Credit  requested
thereby  (but in no event  shall  such  Issuing  Bank be  required  to issue the
requested  Letter of Credit earlier than five Business Days after its receipt of
the Application  therefor and all such other  certificates,  documents and other
papers and information  relating thereto) by issuing the original of such Letter
of Credit  to the  beneficiary  thereof  or as  otherwise  may be agreed by such
Issuing  Bank and the  Company.  Such Issuing Bank shall advise the Agent of the
terms of the Letter of Credit on the date of issuance thereof and shall promptly
thereafter  furnish copies thereof and each amendment thereto to the Company and
the Agent.  The Agent shall,  with the  cooperation of the Issuing Banks and the
Company,  prepare and  distribute  to the Domestic  Lenders a quarterly  summary
setting forth issuances,  cancellations,  extensions and changes in face amounts
of Letters of Credit.

                                       55
<PAGE>

                  4.3 Fees, Commissions and Other Charges. (a) The Company shall
pay to the  Agent,  for the  account  of the  Domestic  Lenders  (including  the
relevant  Issuing  Bank)  pro  rata  according  to their  respective  Commitment
Percentages of the Domestic  Revolving  Credit  Commitments,  a letter of credit
commission  with respect to each Letter of Credit,  computed at a rate per annum
equal to the then  Applicable  Margin for Eurodollar  Loans on the daily average
undrawn face amount of such Letter of Credit.  Such commission  shall be payable
in arrears on the last day of each March, June,  September and December to occur
after the date of issuance of such Letter of Credit and on the  expiration  date
of such Letter of Credit and shall be nonrefundable. On each date upon which the
Company  pays  to the  Agent  letter  of  credit  commissions  pursuant  to this
subsection  4.3(a),  the Company  shall also pay to the relevant  Issuing Bank a
fronting fee with respect to each Letter of Credit, computed at a rate per annum
equal to 1/8 of 1% on the daily  average  undrawn  face amount of such Letter of
Credit.

                  (b) In addition to the  foregoing  fees and  commissions,  the
Company shall (i) pay or reimburse the relevant Issuing Bank for such normal and
customary  costs and expenses as are incurred or charged by such Issuing Bank in
issuing,  effecting  payment  under,  amending or otherwise  administering  such
Letter of Credit  and (ii) pay such  Issuing  Bank such  other  fees as shall be
agreed by such Issuing Bank and the Company.

                  (c) The Agent shall,  promptly  following its receipt thereof,
distribute  to the relevant  Issuing Bank and the Domestic  Lenders all fees and
commissions received by the Agent for their respective accounts pursuant to this
subsection.

                  4.4 L/C  Participations.  (a) Each  Issuing  Bank  irrevocably
agrees to grant and hereby grants to each L/C  Participant,  and, to induce such
Issuing  Bank to  issue  Letters  of  Credit  hereunder,  each  L/C  Participant
irrevocably  agrees to accept and purchase and hereby accepts and purchases from
such Issuing Bank, on the terms and conditions  hereinafter stated, for such L/C
Participant's  own account and risk,  an  undivided  interest  equal to such L/C
Participant's Commitment Percentage of the Domestic Revolving Credit Commitments
in such Issuing Bank's obligations and rights under each Letter of Credit issued
by such Issuing Bank hereunder and the amount of each draft paid by such Issuing
Bank thereunder.  Each L/C Participant  unconditionally  and irrevocably  agrees
with each  Issuing  Bank  that,  if a draft is paid  under any  Letter of Credit
issued by such  Issuing  Bank for  which the  Company  has not  reimbursed  such
Issuing Bank to the full extent  required by the terms of this  Agreement,  such
L/C  Participant  shall pay to such  Issuing  Bank upon  demand at such  Issuing
Bank's  office  listed  in  Schedule  II  or  otherwise  notified  to  such  L/C
Participant an amount equal to such L/C Participant's  Commitment  Percentage of
the Domestic Revolving Credit Commitments times the amount of such draft, or any
part thereof, which is not so reimbursed.

                  (b) If any amount  required to be paid by any L/C  Participant
to an Issuing Bank pursuant to subsection  4.4(a) in respect of any unreimbursed
portion of any payment  made by such  Issuing Bank under any Letter of Credit is
not paid to such  Issuing  Bank on the date  such  payment  is due from such L/C
Participant,  such L/C  Participant  shall pay to such Issuing Bank on demand an
amount  equal to the product of (i) such  amount,  times (ii) the daily  average
Federal funds rate,  as quoted by such Issuing Bank,  during the period from and
including the date such payment is required to the date on which such payment is

                                       56
<PAGE>

immediately available to such Issuing Bank, times (iii) a fraction the numerator
of  which  is the  number  of  days  that  elapse  during  such  period  and the
denominator of which is 360. A certificate of such Issuing Bank submitted to any
L/C Participant with respect to any amounts owing under this subsection shall be
conclusive in the absence of manifest error.

                  (c)  Whenever,  at any  time  after an  Issuing  Bank has made
payment under any Letter of Credit and has received from any L/C Participant its
pro rata share of such  payment  in  accordance  with  subsection  4.4(a),  such
Issuing  Bank  receives  any payment  related to such Letter of Credit  (whether
directly  from the account  party or  otherwise,  including by way of set-off or
proceeds of collateral  applied thereto by such Issuing Bank), or any payment of
interest on account  thereof,  such  Issuing  Bank will  distribute  to such L/C
Participant  its pro rata share thereof;  provided,  however,  that in the event
that any such  payment  received  by such  Issuing  Bank shall be required to be
returned by such Issuing Bank, such L/C Participant shall return to such Issuing
Bank the portion thereof previously distributed by such Issuing Bank to it.

                  (d) Notwithstanding the foregoing, no Domestic Lender shall be
required to purchase a participating  interest in an Issuing Bank's  obligations
and rights  under a Letter of Credit if,  prior to the  issuance by such Issuing
Bank of such  Letter of  Credit or  increase  by such  Issuing  Bank of the face
amount of, or extension by such  Issuing  Bank of the  expiration  date of, such
Letter of Credit,  such  Issuing  Bank has  received  written  notice  from such
Domestic Lender specifying that such Domestic Lender believes in good faith that
an Event of Default has occurred  and is  continuing,  describing  the nature of
such Event of Default and  stating  that,  as a result  thereof,  such  Domestic
Lender shall cease to purchase such participating interests,  except that (x) in
the case of an increase in face amount,  such Domestic  Lender shall be required
to purchase such participating interest to the extent of the face amount of such
Letter of Credit prior to such Domestic  Lender's  written notice and (y) in the
case of an extension of expiration  date, such Domestic Lender shall be required
to purchase such participating interest to the extent that such Letter of Credit
is  drawn  prior  to  prior  expiration  date  (without  giving  effect  to such
extension);  provided that the  obligation  of such Domestic  Lender to purchase
such  participating  interests  shall be reinstated upon the earlier to occur of
(i) the date upon which such Domestic Lender notifies such Issuing Bank that its
prior  notice  has been  withdrawn  and (ii) the date  upon  which  the Event of
Default  specified in such notice no longer is continuing  (it being  understood
that,  in the event that such Event of Default  was not  continuing  at the time
that such  Issuing Bank  received  such notice,  such  Domestic  Lender shall be
obligated to purchase such  participating  interest promptly upon discovery that
its good faith belief was erroneous).

                  4.5  Reimbursement  Obligation.  (a)  The  Company  agrees  to
reimburse  the relevant  Issuing Bank in respect of each Letter of Credit issued
by such  Issuing  Bank on each date on which  such  Issuing  Bank  notifies  the
Company (with a copy to the Agent at its address  listed in subsection  18.2) of
the date and amount of a draft presented under such Letter of Credit and paid by
such  Issuing  Bank for the amount of (i) such draft so paid and (ii) any taxes,
fees,  charges or other  costs or  expenses  incurred  by such  Issuing  Bank in
connection  with such payment;  provided that, if such Issuing Bank shall notify
the Company of a drawing after 2:00 p.m., New York City time, on the date of any
drawing under a Letter of Credit,  the Company will not be required to reimburse

                                       57
<PAGE>

such  Issuing  Bank  until the next  succeeding  Business  Day and,  until  such
reimbursement is so required, the amount of such drawing shall be deemed to be a
Domestic Revolving Credit Loan which is an ABR Loan hereunder in accordance with
the  provisions of paragraph (c) below.  Each such payment shall be made to such
Issuing Bank at its address for notices  specified herein in lawful money of the
United States of America and in immediately available funds.

                  (b) Interest shall be payable on any and all amounts remaining
unpaid by the Company under this  subsection  from the date such amounts  become
payable (whether at stated maturity, by acceleration or otherwise) until payment
in full at the rate which is 2% above the rate payable with respect to ABR Loans
from time to time.

                  (c) Each notice of a drawing  under any Letter of Credit shall
constitute a request by the Company for a borrowing  pursuant to subsection  3.2
of  Domestic  Revolving  Credit  Loans which are ABR Loans in the amount of such
drawing plus any amounts payable pursuant to subsection 4.5(a)(ii) in respect of
such drawing.  The borrowing  date with respect to such  borrowing  shall be the
date of such drawing.

                  4.6 Obligations  Absolute.  (a) The obligations of the Company
under  this  Section 4 shall be  absolute  and  unconditional  under any and all
circumstances  and  irrespective  of any  set-off,  counterclaim  or  defense to
payment  which the Company may have or have had against any Issuing  Bank or any
beneficiary of a Letter of Credit.

                  (b) The Company hereby agrees with each Issuing Bank that such
Issuing  Bank shall not be  responsible  for,  and the  Company's  Reimbursement
Obligations  under  subsection  4.5(a)  shall not be  affected  by,  among other
things,  (i) the validity or  genuineness  of  documents or of any  endorsements
thereon,  even  though  such  documents  shall  in  fact  prove  to be  invalid,
fraudulent  or forged;  provided,  that  reliance  upon such  documents  by such
Issuing Bank shall not have constituted gross negligence or wilful misconduct of
such  Issuing  Bank or (ii) any  dispute  between or among the  Company  and any
beneficiary  of any Letter of Credit or any other  party to which such Letter of
Credit may be transferred  or (iii) any claims  whatsoever of the Company or any
Subsidiary  against  any  beneficiary  of such  Letter  of  Credit  or any  such
transferee.

                  (c) No Issuing  Bank shall be liable for any error,  omission,
interruption  or delay in  transmission,  dispatch or delivery of any message or
advice,  however transmitted,  in connection with any Letter of Credit issued by
it,  except  for  errors  or  omissions  caused  by such  Issuing  Bank's  gross
negligence or willful misconduct.

                  (d) The Company  agrees that any action taken or omitted by an
Issuing  Bank under or in  connection  with any Letter of Credit  issued by such
Issuing Bank or the related drafts or documents, if done in the absence of gross
negligence or willful  misconduct  and in accordance  with the standards of care
specified in the Uniform Customs,  shall be binding on the Company and shall not
result in any liability of such Issuing Bank to the Company or any Subsidiary.

                  4.7 Letter of Credit Payments. If any draft shall be presented
for  payment to an Issuing  Bank under any Letter of Credit  issued by it,  such
Issuing Bank shall promptly  notify the Company of the date and amount  thereof.

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<PAGE>

The  responsibility  of such Issuing Bank to the Company in connection  with any
draft  presented  for payment  under any Letter of Credit issued by such Issuing
Bank shall, in addition to any payment obligation expressly provided for in such
Letter of Credit,  be limited to determining that the documents  (including each
draft) delivered under such Letter of Credit in connection with such presentment
are in substantial conformity with such Letter of Credit.

                  4.8  Application.  To the  extent  that any  provision  of any
Application  related to any Letter of Credit is inconsistent with the provisions
of this Section 4, the provisions of this Section 4 shall apply.

                         SECTION 5. AMOUNT AND TERMS OF
                        DOMESTIC SWING LINE SUB-FACILITY

                  5.1 Domestic Swing Line Commitments.  (a) Subject to the terms
and conditions  hereof, the Domestic Swing Line Lender agrees to make swing line
loans (individually,  a "Domestic Swing Line Loan"; collectively,  the "Domestic
Swing  Line  Loans")  to  the  Company  under  the  Domestic   Revolving  Credit
Commitments  from time to time  during  the  Commitment  Period in an  aggregate
principal amount at any one time outstanding not to exceed $10,000,000, provided
that no Domestic  Swing Line Loan shall be made if, after  giving  effect to the
making of such Domestic Swing Line Loan and the simultaneous  application of the
proceeds thereof, the aggregate amount of the Domestic Revolving Credit Exposure
of all the Domestic  Lenders would exceed the lesser of (i) the aggregate amount
of the Domestic  Revolving  Credit  Commitments and (ii) the Domestic  Borrowing
Base then in effect minus the  aggregate  principal  amount  outstanding  of the
Incremental Dollar Loans.    Amounts  borrowed by the Company  under this
subsection  5.1 may be repaid in whole or in part and, up to but  excluding  the
last day of the Commitment Period,  reborrowed, all in accordance with the terms
and conditions hereof. All Domestic Swing Line Loans shall be made in Dollars as
ABR Loans and shall not be entitled to be converted into Eurodollar  Loans.  The
Company  shall give the Domestic  Swing Line Lender  irrevocable  notice  (which
notice must be received by the  Domestic  Swing Line Lender prior to 11:00 A.M.,
New York City time) on the requested  borrowing  date  specifying  the amount of
each requested  Domestic Swing Line Loan,  which shall be in a minimum amount of
$100,000 or a whole multiple  thereof.  The proceeds of each Domestic Swing Line
Loan will be made  available by the Domestic Swing Line Lender to the Company by
crediting  the  account of the Company  designated  to the  Domestic  Swing Line
Lender with such proceeds.

                  (b) The Company hereby unconditionally  promises to pay to the
Domestic Swing Line Lender on the Termination  Date all amounts owing on account
of the  Domestic  Swing Line  Loans.  The  Domestic  Swing  Line Loans  shall be
evidenced  by a  promissory  note of the  Company  substantially  in the form of
Exhibit A-6,  with  appropriate  insertions  (the  "Domestic  Swing Line Note"),
payable to the order of the  Domestic  Swing Line  Lender and  representing  the
obligation of the Company to pay the aggregate  unpaid  principal  amount of the
Domestic  Swing Line Loans,  with  interest  thereon as prescribed in subsection
10.5.  The  Domestic  Swing  Line  Lender is  hereby  authorized  to record  the
borrowing  date,  the amount of each  Domestic  Swing Line Loan and the date and

                                       59
<PAGE>

amount of each  payment or  prepayment  of  principal  thereof  on the  schedule
annexed to and  constituting  a part of the Domestic Swing Line Note and, in the
absence of manifest error,  any such  recordation  shall  constitute prima facie
evidence of the  accuracy of the  information  so  recorded,  provided  that the
failure of the Domestic Swing Line Lender to make such recordation (or any error
in such  recordation)  shall not affect the obligations of the Company hereunder
or under such Note.  The Domestic Swing Line Note shall (a) be dated the Closing
Date, (b) be stated to mature on the Termination  Date and (c) bear interest for
the period from the Closing  Date on the unpaid  principal  amount  thereof from
time to time outstanding at the applicable interest rate per annum determined as
provided in, and payable as specified in, subsection 10.5.

                  (c) The Domestic  Swing Line  Lender,  at any time in its sole
and absolute discretion, may, on behalf of the Company (which hereby irrevocably
directs the  Domestic  Swing Line  Lender to act on its  behalf),  request  each
Domestic Lender, including Chase, to make a Domestic Revolving Credit Loan in an
amount equal to such  Domestic  Lender's  Commitment  Percentage of the Domestic
Revolving Credit  Commitments  times the amount of the Domestic Swing Line Loans
(the "Refunded  Domestic Swing Line Loans")  outstanding on the date such notice
is given.  Unless any of the events described in paragraph (g) or (h) of Section
16 shall have  occurred (in which event the  procedures of paragraph (d) of this
subsection 5.1 shall apply), each Domestic Lender shall make the proceeds of its
Domestic  Revolving  Credit Loan available to the Domestic Swing Line Lender for
its own account at the office  specified for Chase in  subsection  18.2 prior to
11:00 A.M. (New York City time) in funds  immediately  available on the Business
Day next succeeding the date such notice is given. The proceeds of such Domestic
Revolving  Credit  Loans  shall be  immediately  applied  to repay the  Refunded
Domestic Swing Line Loans.  Notwithstanding  anything to the contrary  contained
herein, the Domestic Swing Line Lender shall (unless any of the events described
in paragraph (g) or (h) of Section 16 shall have occurred) request each Domestic
Lender  to make  such a  Domestic  Revolving  Credit  Loan  for the  purpose  of
refunding  outstanding  Domestic Swing Line Loans not less frequently than every
15 days.

                  (d) If,  prior to the  making of a Domestic  Revolving  Credit
Loan pursuant to paragraph (c) of subsection 5.1, one of the events described in
paragraph (g) or (h) of Section 16 shall have  occurred,  each  Domestic  Lender
will,  on the date such  Domestic  Revolving  Credit Loan was to have been made,
purchase an undivided participating interest in the Refunded Domestic Swing Line
Loans in an amount equal to its Commitment  Percentage of the Domestic Revolving
Credit  Commitments  times the aggregate amount of such Refunded  Domestic Swing
Line Loans. Each Domestic Lender will immediately transfer to the Domestic Swing
Line Lender, in immediately available funds, the amount of its participation and
upon  receipt  thereof  the  Domestic  Swing Line  Lender  will  deliver to such
Domestic Lender a Domestic Swing Line Loan  Participation  Certificate dated the
date of receipt of such funds and in such amount.

                  (e) Whenever, at any time after the Domestic Swing Line Lender
has  received  from any Domestic  Lender such  Domestic  Lender's  participating
interest in a Refunded Domestic Swing Line Loan pursuant to paragraph (d) above,
the  Domestic  Swing Line Lender  receives any payment on account  thereof,  the
Domestic  Swing  Line  Lender  will  distribute  to  such  Domestic  Lender  its

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<PAGE>

participating  interest in such amount  (appropriately  adjusted, in the case of
interest  payments,  to reflect  the period of time during  which such  Domestic
Lender's  participating  interest was  outstanding  and funded) in like funds as
received; provided, however, that in the event that such payment received by the
Domestic Swing Line Lender is required to be returned, such Domestic Lender will
return  to the  Domestic  Swing  Line  Lender  any  portion  thereof  previously
distributed  by the  Domestic  Swing  Line  Lender  to it in like  funds as such
payment is required to be returned by the Domestic Swing Line Lender.

                  (f) Notwithstanding the foregoing, no Domestic Lender shall be
required to make a Domestic Revolving Credit Loan to the Company for the purpose
of refunding a Domestic  Swing Line Loan  pursuant to paragraph  (c) above or to
purchase a  participating  interest  in a Domestic  Swing Line Loan  pursuant to
paragraph (d) above if, prior to the making by the Domestic Swing Line Lender of
such  Domestic  Swing Line Loan,  the  Domestic  Swing Line Lender has  received
written notice from such Domestic  Lender  specifying  that such Domestic Lender
believes in good faith that an Event of Default has occurred and is  continuing,
describing  the nature of such Event of Default  and stating  that,  as a result
thereof, such Domestic Lender shall cease to make such Domestic Revolving Credit
Loans or purchase such  participating  interests,  as the case may be;  provided
that the  obligation  of such Domestic  Lender to make such  Domestic  Revolving
Credit Loans and to purchase such  participating  interests  shall be reinstated
upon the  earlier  to occur of (i) the date  upon  which  such  Domestic  Lender
notifies the Domestic Swing Line Lender that its prior notice has been withdrawn
and (ii) the date upon which the Event of Default  specified  in such  notice no
longer is continuing (it being  understood that, in the event that such Event of
Default  was not  continuing  at the time that the  Domestic  Swing Line  Lender
received  such  notice,  such  Domestic  Lender  shall be  obligated to make its
Domestic  Revolving Credit Loan or purchase its  participating  interest in such
Domestic  Swing Line Loan promptly upon discovery that its good faith belief was
erroneous).

                  5.2 Participations.  Each Domestic Lender's obligation to make
Domestic  Revolving  Credit Loans pursuant to paragraph (c) of subsection 5.1 or
to purchase participating  interests pursuant to paragraph (d) of subsection 5.1
shall (except to the extent  expressly set forth in  subsection  5.1(c),  (d) or
(f))  be  absolute  and   unconditional   and  shall  not  be  affected  by  any
circumstance,  including,  without  limitation,  (a) any set-off,  counterclaim,
recoupment,  defense or other right which such Domestic  Lender may have against
the Domestic  Swing Line Lender,  the Company or any other Person for any reason
whatsoever;  (b) the  occurrence  or  continuance  of an Event of Default or any
other failure to satisfy any condition  precedent to borrowing under Section 12;
(c) any adverse change in the condition  (financial or otherwise) of the Company
or any other  Person;  (d) any breach of this  Agreement  by the  Company or any
other Domestic Lender;  (e) the amount of the Domestic  Borrowing Base in effect
on the date of such purchase; or (e) any other circumstance,  happening or event
whatsoever, whether or not similar to any of the foregoing.

                  5.3 Use of Proceeds of Domestic Swing Line Loans. The proceeds
of the Domestic Swing Line Loans  hereunder shall be used by the Company for any
purpose for which the proceeds of Domestic Revolving Credit Loans may be used.

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<PAGE>

                          SECTION 6. THE UK TERM LOANS

                  6.1 UK Term Loans. Subject to the terms and conditions hereof,
each UK Lender severally agrees to make a term loan (a "UK Term Loan") to the UK
Borrower on the Closing Date in an amount not to exceed each such UK Lender's UK
Term Loan Commitment. The UK Term Loans shall be made in Pounds Sterling and may
from time to time be (a) Domestic  Sterling Loans,  (b) Sterling Base Rate Loans
or (c) a  combination  thereof,  as determined by the UK Borrower in the initial
notice of borrowing or in any notice of conversion with respect thereto.

                  6.2  Procedure  for UK Term Loan  Borrowing.  The UK  Borrower
shall give the Agent  irrevocable  notice  (which notice must be received by the
Agent prior to 11:00 A.M., London, England time, on the Closing Date) requesting
that the UK Lenders make the UK Term Loans on the Closing Date.  Upon receipt of
any such notice of  borrowing  from the UK  Borrower,  the Agent shall  promptly
notify  each UK Lender of receipt  of such  notice of  borrowing  and of such UK
Lender's Commitment Percentage of the UK Term Loans to be made pursuant thereto.
Each UK Lender will make the amount of its pro rata share of the borrowing of UK
Term Loans  available  to the Agent for the  account of the UK  Borrower  at the
office of the Agent  specified in subsection  18.2 prior to 12:00 Noon,  London,
England time, on the Closing Date in funds  immediately  available to the Agent.
Such borrowing  will then be  transferred  by the Agent to its principal  office
located  in the  City of New York and held by the  Agent  (on  behalf  of the UK
Lenders)  until such time as the Domestic Term Loans are borrowed on the Closing
Date. At such time,  the Agent shall transfer such amounts as actually have been
received by it (and in like funds as  received by it) in the manner  directed by
the UK Borrower.  Notwithstanding anything to the contrary contained herein, the
UK Term Loans initially shall be made as Sterling Base Rate Loans hereunder.

                  6.3  Amortization of UK Term Loans. (a) The UK Borrower hereby
unconditionally promises to pay to the Agent, for the account of the UK Lenders,
on each date set forth below the principal amount of the UK Term Loans set forth
opposite such date:

                                  Date                     Amount

                         September 30, 1996                  49,695.20
                         December 31, 1996                   49,695.20
                         March 31, 1997                     115,995.47
                         June 30, 1997                      115,995.47
                         September 30, 1997                  49,695.20
                         December 31, 1997                   49,695.20
                         March 31, 1998                     115,995.47
                         June 30, 1998                      115,995.47
                         September 30, 1998                 124,238.01

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<PAGE>

                         December 31, 1998                  124,238.01
                         March 31, 1999                     124,238.01
                         June 30, 1999                      124,238.01
                         September 30, 1999                 124,238.01
                         December 30, 1999                  124,238.01
                         March 30, 2000                     124,238.01
                         June 30, 2000                      124,238.01
                         September 30, 2000                 165,650.68
                         December 31, 2000                  165,650.68
                         March 31, 2001                     165,650.68
                         June 30, 2001                      165,650.68
                         September 30, 2001                 331,301.35
                         December 31, 2001                  331,301.35
                         March 31, 2002                     331,301.34

                  (b) The UK  Borrower  hereby  unconditionally  agrees that any
then-outstanding UK Term Loans shall be due and payable on the Termination Date.

                  (c) The UK  Borrower  hereby  agrees  to pay  interest  on the
unpaid  principal amount of the UK Term Loans from time to time outstanding from
the date hereof until payment in full thereof at the rates per annum, and on the
dates, set forth in subsection 10.5.

                  6.4  Evidence of Debt.  (a) Each UK Lender  shall  maintain in
accordance   with  its  usual   practice  an  account  or  accounts   evidencing
indebtedness  of the UK Borrower to such UK Lender  resulting  from each UK Term
Loan of such UK Lender from time to time, including the amounts of principal and
interest  payable  and  paid to such UK  Lender  from  time to time  under  this
Agreement.

                  (b)  The  Agent  shall  maintain  the  Register   pursuant  to
subsection 18.6(d),  and a subaccount therein for each UK Lender, in which shall
be recorded (i) the amount of each UK Term Loan made hereunder and each Interest
Period (if any) applicable thereto, (ii) the amount of any principal or interest
due and payable or to become due and payable  from the Company to each UK Lender
under the UK Term  Loans and (iii) the amount of any sum  received  by the Agent
from the UK  Borrower  in respect of  principal  of or  interest  on the UK Term
Loans, and the amount of each UK Lender's share thereof.

                  (c) The entries  made in the Register and the accounts of each
UK  Lender  maintained  pursuant  to  subsection  6.4(a)  shall,  to the  extent
permitted  by  applicable  law, be prima facie  evidence  of the  existence  and
amounts  of the  obligations  of the UK  Borrower  therein  recorded;  provided,
however, that the failure of any UK Lender or the Agent to maintain the Register
or any such account,  or any error  therein,  shall not in any manner affect the
obligation  of the UK Borrower to repay (with  applicable  interest) the UK Term
Loan made to the UK Borrower by such UK Lender in  accordance  with the terms of
this Agreement.

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<PAGE>

                  (d) The UK Borrower agrees that, upon the request to the Agent
by any UK Lender,  the UK Borrower  will execute and deliver to such UK Lender a
promissory  note  of the UK  Borrower  evidencing  the UK  Term  Loan of such UK
Lender,  substantially in the form of Exhibit A-3 with appropriate insertions as
to date and principal amount (a "UK Term Loan Note").

                  6.5 Use of Proceeds of UK Term Loans.  The UK Term Loans shall
be used on the Closing  Date to  refinance  outstanding  Indebtedness  of the UK
Borrower.

                    SECTION 7. THE UK REVOLVING CREDIT LOANS

     7.1 UK Revolving Credit Loans.  Subject to the terms and conditions hereof,
each UK Lender  severally  agrees to make loans on a revolving credit basis ("UK
Revolving  Credit  Loans")  to the UK  Borrower  from  time to time  during  the
Commitment Period;  provided, that no UK Revolving Credit Loan shall be made if,
after giving effect to the making of such Loan and the simultaneous  application
of the proceeds thereof,  the aggregate  outstanding  principal amount of the UK
Revolving Credit Loans would exceed the lesser of (i) the aggregate amount of UK
Revolving Credit Commitments and (ii) the UK Borrowing Base then in effect minus
the aggregate  principal amount  outstanding of the Incremental  Sterling Loans.
Amounts  borrowed by the UK Borrower under this  subsection 7.1 may be repaid in
whole or in part and, up to but excluding the last day of the Commitment Period,
reborrowed,  all in  accordance  with the terms and  conditions  hereof.  The UK
Revolving  Credit  Loans shall be made in Pounds  Sterling  and may from time to
time be (i) Domestic  Sterling  Loans,  (ii) Sterling Base Rate Loans or (iii) a
combination  thereof,  as  determined  by the UK  Borrower  and set forth in the
notice of borrowing or notice of conversion with respect thereto; provided, that
(x) no  Domestic  Sterling  Loan  shall be made  after the day that is one month
prior to the Termination  Date and (y) any UK Revolving  Credit Loans to be made
on the Closing Date shall be made entirely as Sterling Base Rate Loans.

                  7.2 Procedure for UK Revolving Credit Loan Borrowing.  (a) The
UK  Borrower  shall give the Agent  irrevocable  notice  (which  notice  must be
received by the Agent prior to 11:00 A.M., London,  England time, three Business
Days  prior  to the  requested  borrowing  date,  if all or any  part  of the UK
Revolving  Credit  Loans  are to be  initially  Domestic  Sterling  Loans or one
Business Day prior to the requested borrowing date,  otherwise)  requesting that
the UK Lenders  make the UK Revolving  Credit  Loans  specified in the notice of
borrowing in respect thereof on the requested  borrowing date. Each borrowing of
UK  Revolving  Credit  Loans  shall be in an amount  equal to (i) in the case of
Sterling Base Rate Loans, 350,000  or a whole multiple of 100,000
in excess thereof (or, if the then aggregate  undrawn amount of the UK Revolving
Credit  Commitments  is less than 350,000,  such  lesser  amount) or the
principal amount of Refunded UK Swing Line Loans, if made pursuant to subsection
8.1(a),  and (ii) in the case of Domestic  Sterling Loans, 750,000  or a
whole multiple of 100,000  in excess  thereof.  Upon receipt of any such
notice of borrowing from the UK Borrower,  the Agent shall promptly  notify each
UK Lender of  receipt  of such  notice of  borrowing.  Subject  to the terms and
conditions hereof,  each UK Lender will make the amount of its pro rata share of
each  borrowing  of UK  Revolving  Credit  Loans  available to the Agent for the
account of the UK Borrower at the office of the Agent  specified  in  subsection

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18.2 prior to 12:00 Noon, London,  England time, on the borrowing date requested
by the UK Borrower in funds  immediately  available to the Agent. Such borrowing
will  then be made  available  to the UK  Borrower  by the Agent  crediting  the
account of the UK Borrower on the books of such office with the aggregate of the
amounts  made  available  to the Agent by the UK  Lenders  and in like  funds as
received by the Agent.

                  (b)  Notwithstanding  the  provisions  of  clause  (a) of this
subsection 7.2, the UK Revolving Credit Loans to be borrowed on the Closing Date
shall be made by the UK Lenders upon same-day  notice (which must be received by
the Agent prior to 11:00 A.M.,  London,  England time) on the Closing Date. Upon
receipt by the Agent of the  proceeds of such UK  Revolving  Credit  Loans,  the
Agent shall  transfer such proceeds to its principal  office located in New York
City and shall hold such proceeds (on behalf of the UK Lenders)  until such time
as the Domestic Term Loans are borrowed on the Closing  Date. At such time,  the
Agent shall  transfer  such amounts as actually have been received by it (and in
like funds as received by it) in the manner directed by the UK Borrower.

                  7.3      Repayment of UK Revolving Credit Loans.  (a)  The UK
Borrower hereby unconditionally promises to pay to the Agent, for the
account of the UK Lenders, on the Termination Date all amounts owing on account
of the UK Revolving Credit Loans.

                  (b) The UK  Borrower  hereby  agrees  to pay  interest  on the
unpaid  principal  amount of the UK  Revolving  Credit  Loans  from time to time
outstanding  from the date hereof until payment in full thereof at the rates per
annum, and on the dates, set forth in subsection 10.5.

                  7.4  Evidence of Debt.  (a) Each UK Lender  shall  maintain in
accordance   with  its  usual   practice  an  account  or  accounts   evidencing
indebtedness  of the UK  Borrower  to  such UK  Lender  resulting  from  each UK
Revolving Credit Loan of such UK Lender from time to time, including the amounts
of principal  and interest  payable and paid to such UK Lender from time to time
under this Agreement.

                  (b)  The  Agent  shall  maintain  the  Register   pursuant  to
subsection 18.6(d),  and a subaccount therein for each UK Lender, in which shall
be recorded (i) the amount of each UK Revolving  Credit Loan made  hereunder and
each  Interest  Period  (if any)  applicable  thereto,  (ii) the  amount  of any
principal  or interest  due and payable or to become due and payable from the UK
Borrower to each UK Lender  under the UK  Revolving  Credit  Loans and (iii) the
amount of any sum  received  by the Agent  from the UK  Borrowing  in respect of
principal of or interest on the UK  Revolving  Credit  Loans,  and the amount of
each UK Lender's share thereof.

                  (c) The entries  made in the Register and the accounts of each
UK  Lender  maintained  pursuant  to  subsection  7.4(a)  shall,  to the  extent
permitted  by  applicable  law, be prima facie  evidence  of the  existence  and
amounts  of the  obligations  of the UK  Borrower  therein  recorded;  provided,
however, that the failure of any UK Lender or the Agent to maintain the Register
or any such account,  or any error  therein,  shall not in any manner affect the
obligation  of the UK  Borrower  to  repay  (with  applicable  interest)  the UK
Revolving  Credit Loans made to the UK Borrower by such UK Lender in  accordance
with the terms of this Agreement.

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<PAGE>

                  (d) The UK Borrower agrees that, upon the request to the Agent
by any UK Lender,  the UK Borrower  will execute and deliver to such UK Lender a
promissory note of the UK Borrower  evidencing the UK Revolving  Credit Loans of
such UK Lender,  substantially  in the form of  Exhibit  A-4,  with  appropriate
insertions as to date and principal amount (a "UK Revolving Credit Note").

                  7.5 Use of  Proceeds  of UK  Revolving  Credit  Loans.  The UK
Revolving  Credit Loans shall be used from time to time for working  capital and
other general corporate purposes of the UK Borrower and its Subsidiaries  (other
than to finance acquisitions).

                         SECTION 8. AMOUNT AND TERMS OF
                           UK SWING LINE SUB-FACILITY

                  8.1 UK Swing Line  Commitments.  (a)  Subject to the terms and
conditions  hereof,  the UK Swing  Line  Lender  agrees to make swing line loans
(individually,  a "UK Swing Line Loan"; collectively, the "UK Swing Line Loans")
to the UK Borrower under the UK Revolving  Credit  Commitments from time to time
during the Commitment  Period in an aggregate  principal  amount at any one time
outstanding not to exceed (pound)2,000,000,  provided that no UK Swing Line Loan
shall be made if, after  giving  effect to the making of such UK Swing Line Loan
and the simultaneous  application of the proceeds thereof,  the aggregate amount
of the UK  Revolving  Credit  Exposure  of all the UK Lenders  would  exceed the
lesser of (i) the aggregate  amount of the UK Revolving  Credit  Commitments and
(ii) the UK Borrowing Base then in effect minus the aggregate  principal  amount
outstanding of the Incremental Loans to the UK Borrower. Amounts borrowed by the
UK Borrower under this  subsection 8.1 may be repaid in whole or in part and, up
to but  excluding  the last day of the  Commitment  Period,  reborrowed,  all in
accordance with the terms and conditions  hereof.  All UK Swing Line Loans shall
be made in Pounds Sterling as Sterling Base Rate Loans and shall not be entitled
to be converted into Domestic  Sterling Loans. The UK Borrower shall give the UK
Swing Line Lender  irrevocable  notice  (which notice must be received by the UK
Swing Line Lender prior to 11:00 A.M.,  London time) on the requested  borrowing
date specifying the amount of each requested UK Swing Line Loan,  which shall be
in a minimum amount of (pound)50,000 or a whole multiple  thereof.  The proceeds
of each UK Swing Line Loan will be made available by the UK Swing Line Lender to
the UK Borrower by crediting the account of the UK Borrower designated to the UK
Swing Line Lender with such proceeds.

                  (b) The UK Borrower hereby unconditionally  promises to pay to
the UK Swing Line Lender on the Termination Date all amounts owing on account of
the UK Swing  Line  Loans.  The UK Swing  Line  Loans  shall be  evidenced  by a
promissory  note of the UK Borrower  substantially  in the form of Exhibit  A-7,
with appropriate  insertions (the "UK Swing Line Note"), payable to the order of
the UK Swing Line Lender and  representing  the obligation of the UK Borrower to
pay the  aggregate  unpaid  principal  amount of the UK Swing Line  Loans,  with
interest  thereon as prescribed in subsection  10.5. The UK Swing Line Lender is
hereby authorized to record the borrowing date, the amount of each UK Swing Line
Loan and the date and amount of each payment or prepayment of principal  thereof

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on the  schedule  annexed to and  constituting  a part of the UK Swing Line Note
and, in the absence of manifest error,  any such  recordation  shall  constitute
prima facie evidence of the accuracy of the  information  so recorded,  provided
that the  failure of the UK Swing Line Lender to make such  recordation  (or any
error in such  recordation)  shall not affect the obligations of the UK Borrower
hereunder  or under  such  Note.  The UK Swing  Line Note shall (a) be dated the
Closing  Date,  (b) be stated to  mature  on the  Termination  Date and (c) bear
interest  for the period from the Closing  Date on the unpaid  principal  amount
thereof from time to time outstanding at the applicable  interest rate per annum
determined as provided in, and payable as specified in, subsection 10.5.

                  (c) The UK  Swing  Line  Lender,  at any  time in its sole and
absolute discretion, may, on behalf of the UK Borrower (which hereby irrevocably
directs the UK Swing Line Lender to act on its behalf),  request each UK Lender,
including  Chase, to make a UK Revolving  Credit Loan in an amount equal to such
UK Lender's  Commitment  Percentage of the UK Revolving Credit Commitments times
the  amount of the UK Swing  Line Loans  (the  "Refunded  UK Swing Line  Loans")
outstanding on the date such notice is given. Unless any of the events described
in  paragraph  (g) or (h) of Section 16 shall have  occurred (in which event the
procedures of paragraph (d) of this subsection 8.1 shall apply),  each UK Lender
shall make the  proceeds of its UK  Revolving  Credit Loan  available  to the UK
Swing Line  Lender for its own  account  at the office in London  specified  for
Chase in subsection 18.2 prior to 11:00 A.M. (London time) in funds  immediately
available on the Business Day next succeeding the date such notice is given. The
proceeds of such UK Revolving Credit Loans shall be immediately applied to repay
the Refunded UK Swing Line Loans.

                  (d) If,  prior to the  making of a UK  Revolving  Credit  Loan
pursuant to paragraph  (c) of  subsection  8.1,  one of the events  described in
paragraph (g) or (h) of Section 16 shall have occurred,  each UK Lender will, on
the date such UK  Revolving  Credit  Loan was to have  been  made,  purchase  an
undivided  participating  interest  in the  Refunded  UK Swing  Line Loans in an
amount equal to its Commitment Percentage of the UK Revolving Credit Commitments
times the aggregate amount of such Refunded UK Swing Line Loans.  Each UK Lender
will immediately transfer to the UK Swing Line Lender, in immediately  available
funds,  the amount of its  participation  and upon receipt  thereof the UK Swing
Line  Lender will  deliver to such UK Lender a UK Swing Line Loan  Participation
Certificate dated the date of receipt of such funds and in such amount.

                  (e)  Whenever,  at any time after the UK Swing Line Lender has
received  from  any UK  Lender  such UK  Lender's  participating  interest  in a
Refunded UK Swing Line Loan pursuant to paragraph  (d) above,  the UK Swing Line
Lender  receives any payment on account  thereof,  the UK Swing Line Lender will
distribute  to  such  UK  Lender  its  participating  interest  in  such  amount
(appropriately adjusted, in the case of interest payments, to reflect the period
of time during which such UK Lender's participating interest was outstanding and
funded) in like funds as  received;  provided,  however,  that in the event that
such  payment  received by the UK Swing Line Lender is required to be  returned,
such UK Lender  will  return to the UK Swing  Line  Lender any  portion  thereof
previously  distributed  by the UK Swing Line Lender to it in like funds as such
payment is required to be returned by the UK Swing Line Lender.

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<PAGE>

                  (f)  Notwithstanding  the  foregoing,  no UK  Lender  shall be
required to make a UK  Revolving  Credit Loan to the UK Borrower for the purpose
of refunding a UK Swing Line Loan pursuant to paragraph (c) above or to purchase
a participating interest in a UK Swing Line Loan pursuant to paragraph (d) above
if,  prior to the making by the UK Swing Line Lender of such UK Swing Line Loan,
the UK Swing  Line  Lender  has  received  written  notice  from  such UK Lender
specifying  that such UK Lender  believes in good faith that an Event of Default
has occurred and is  continuing,  describing the nature of such Event of Default
and stating that, as a result  thereof,  such UK Lender shall cease to make such
UK Revolving Credit Loans or purchase such participating  interests, as the case
may be; provided that the obligation of such UK Lender to make such UK Revolving
Credit Loans and to purchase such  participating  interests  shall be reinstated
upon the earlier to occur of (i) the date upon which such UK Lender notifies the
UK Swing Line Lender that its prior notice has been  withdrawn and (ii) the date
upon which the Event of Default specified in such notice no longer is continuing
(it being  understood  that,  in the event that such  Event of  Default  was not
continuing at the time that the UK Swing Line Lender received such notice,  such
UK Lender shall be  obligated  to make its UK Revolving  Credit Loan or purchase
its  participating  interest in such UK Swing Line Loan promptly upon  discovery
that its good faith belief was erroneous).

                  8.2  Participations.  Each UK Lender's  obligation  to make UK
Revolving  Credit  Loans  pursuant  to  paragraph  (c) of  subsection  8.1 or to
purchase  participating  interests  pursuant to paragraph (d) of subsection  8.1
shall (except to the extent  expressly set forth in  subsection  8.1(c),  (d) or
(f))  be  absolute  and   unconditional   and  shall  not  be  affected  by  any
circumstance,  including,  without  limitation,  (a) any set-off,  counterclaim,
recoupment,  defense or other right which such UK Lender may have against the UK
Swing  Line  Lender,  the UK  Borrower  or  any  other  Person  for  any  reason
whatsoever;  (b) the  occurrence  or  continuance  of an Event of Default or any
other failure to satisfy any condition  precedent to borrowing under Section 12;
(c) any adverse  change in the  condition  (financial  or  otherwise)  of the UK
Borrower  or any  other  Person;  (d) any  breach  of this  Agreement  by the UK
Borrower  or any other UK  Lender;  (e) the amount of the UK  Borrowing  Base in
effect on the date of such purchase; or (e) any other circumstance, happening or
event whatsoever, whether or not similar to any of the foregoing.

                  8.3 Use of Proceeds of UK Swing Line  Loans.  The  proceeds of
the UK Swing  Line  Loans  hereunder  shall be used by the UK  Borrower  for any
purpose for which the proceeds of UK Revolving Credit Loans may be used.

                        SECTION 9. THE SUPPLEMENTAL LOANS

                  9.1   Supplemental   Loans.  (a)  Subject  to  the  terms  and
conditions  hereof,  each Secured  Supplemental  Lender severally agrees to make
term loans  ("Secured  Supplemental  Loans") to the Company on the  Supplemental
Closing Date in an amount not to exceed the Secured  Supplemental  Commitment of
such Secured  Supplemental  Lender. The Secured Supplemental Loans shall be made
in Dollars and may from time to time be (i) Eurodollar  Loans, (ii) ABR Loans or

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(iii) a combination  thereof,  as determined by the Company and set forth in the
notice of borrowing or notice of conversion with respect thereto;  provided that
the  Secured  Supplemental  Loans to be made on the  Supplemental  Closing  Date
initially shall be made as ABR Loans and shall be converted to Eurodollar  Loans
as promptly as is practicable thereafter.

                  (b) Subject to the terms and conditions hereof, each Unsecured
Supplemental Lender severally agrees to make term loans ("Unsecured Supplemental
Loans") to the  Company  on the  Supplemental  Closing  Date in an amount not to
exceed the  Unsecured  Supplemental  Commitment of such  Unsecured  Supplemental
Lender.  The Unsecured  Supplemental Loans shall be made in Dollars and may from
time to time be (i)  Eurodollar  Loans,  (ii) ABR  Loans or (iii) a  combination
thereof,  as  determined by the Company and set forth in the notice of borrowing
or notice of  conversion  with  respect  thereto;  provided  that the  Unsecured
Supplemental  Loans to be made on the Supplemental  Closing Date initially shall
be made as ABR Loans and shall be converted to  Eurodollar  Loans as promptly as
is practicable thereafter.

                  9.2 Procedure for  Supplemental  Loan  Borrowing.  The Company
shall give the Agent  irrevocable  notice  (which notice must be received by the
Agent prior to 11:00 A.M., New York City time, on the Supplemental Closing Date)
requesting  that the  Supplemental  Lenders make the  Supplemental  Loans on the
Supplemental Closing Date. Upon receipt of any such notice of borrowing from the
Company,  the Agent shall promptly notify each Supplemental Lender of receipt of
such notice of borrowing and of such Supplemental  Lender's Facility  Percentage
of the Secured  Supplemental  Loans and Unsecured  Supplemental Loans to be made
pursuant thereto.  Each Supplemental Lender will make the amount of its pro rata
share of the  borrowing  of the  Secured  Supplemental  Loans  and/or  Unsecured
Supplemental Loans (as applicable) available to the Agent for the account of the
Company at the office of the Agent  specified in subsection  18.2 prior to 12:00
Noon, New York City time, on the Supplemental  Closing Date in funds immediately
available  to the  Agent.  Such  borrowing  will then be made  available  to the
Company by the Agent  crediting  the account of the Company on the books of such
office with the  aggregate  of the amounts  made  available  to the Agent by the
Supplemental Lenders and in like funds as received by the Agent.

                  9.3      Repayment of Supplemental Loans.  The Company hereby
unconditionally agrees that any then-outstanding Supplemental Loans
shall be due and payable on June 30, 2001.

                  (a) The Company  hereby  agrees to pay  interest on the unpaid
principal  amount of the  Supplemental  Loans from time to time outstanding from
the date hereof until payment in full thereof at the rates per annum, and on the
dates, set forth in subsection 10.5.

                  9.4  Evidence  of Debt.  (a) Each  Supplemental  Lender  shall
maintain in accordance with its usual practice an account or accounts evidencing
indebtedness  of the Company to such  Supplemental  Lender  resulting  from each
Secured  Supplemental  Loan  and  each  Unsecured   Supplemental  Loan  of  such
Supplemental  Lender from time to time,  including  the amounts of principal and
interest  payable and paid to such  Supplemental  Lender from time to time under
this Agreement.

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<PAGE>

                  (b)  The  Agent  shall  maintain  the  Register   pursuant  to
subsection  18.6(d),  and a subaccount therein for each Supplemental  Lender, in
which shall be recorded  (i) the amount of each Secured  Supplemental  Loan made
hereunder and each Interest Period (if any) applicable thereto,  (ii) the amount
of each Unsecured  Supplemental Loan made hereunder and each Interest Period (if
any) applicable  thereto,  (iii) the amount of any principal or interest due and
payable  or to become due and  payable  from the  Company  to each  Supplemental
Lender under the Supplemental  Loans and (iii) the amount of any sum received by
the Agent  from the  Company  in  respect of  principal  of or  interest  on the
Supplemental Loans, and the amount of each Supplemental Lender's share thereof.

                  (c) The entries  made in the Register and the accounts of each
Supplemental  Lender  maintained  pursuant to subsection  9.4(a)  shall,  to the
extent permitted by applicable law, be prima facie evidence of the existence and
amounts of the obligations of the Company therein recorded;  provided,  however,
that the  failure  of any  Supplemental  Lender  or the  Agent to  maintain  the
Register  or any such  account,  or any error  therein,  shall not in any manner
affect the  obligation  of the Company to repay (with  applicable  interest) the
Supplemental Loans made to the Company by such Supplemental Lender in accordance
with the terms of this Agreement.

                  (d) The Company agrees that,  upon the request to the Agent by
any Secured  Supplemental  Lender,  the Company will execute and deliver to such
Secured  Supplemental  Lender a promissory  note of the Company  evidencing  the
Secured Supplemental Loan of such Secured Supplemental Lender,  substantially in
the form of Exhibit A-5A, with  appropriate  insertions as to date and principal
amount (a "Secured Supplemental Note").

                  (e) The Company agrees that,  upon the request to the Agent by
any Unsecured  Supplemental Lender, the Company will execute and deliver to such
Unsecured  Supplemental  Lender a promissory note of the Company  evidencing the
Unsecured Supplemental Loan of such Unsecured Supplemental Lender, substantially
in the  form of  Exhibit  A-5B,  with  appropriate  insertions  as to  date  and
principal amount (an "Unsecured Supplemental Note").

                  9.5      Use of Proceeds of Supplemental Loans.  The
Supplemental Loans shall be used for general corporate purposes of the Company
and its Subsidiaries.

                  9.6  Collateral  for  Supplemental  Loans.  (a) The  Unsecured
Supplemental Lenders hereby acknowledge and agree that, notwithstanding anything
to the contrary contained in Guarantees or the Security Documents, the Unsecured
Supplemental  Loans are intended to be unsecured  and shall not benefit from the
guarantees and security interests provided pursuant thereto.

                  (b) The parties hereto  (including,  without  limitation,  the
Secured  Supplemental  Lenders)  hereby  acknowledge  and agree that the Secured
Supplemental  Loans shall  benefit  from a first  priority,  perfected  security
interest in all Collateral, and shall benefit from all Guarantees,  which secure
or support (as the case may be) the obligations  owing by the Company on account
of the Domestic Loans.  Notwithstanding  the foregoing,  the Lenders (including,
without  limitation,   the  Secured  Supplemental  Lenders)  hereby  irrevocably

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authorize  and  instruct  the  Agent to apply  any  proceeds  derived  from such
Collateral and Guarantees, as follows:

         first,      to the payment of the Primary Obligations; and

         second,     to the extent of any excess  proceeds after  application in
                     accordance  with  clause  first  above,  to the  payment of
                     principal   and   interest   on  account  of  the   Secured
                     Supplemental Loans.

The provisions of this  subsection  9.6(b)  constitute  solely an  intercreditor
agreement  among the Lenders and the Agent,  and shall not affect the rights and
interests of the Secured  Supplemental  Lenders with respect to the Company, its
Subsidiaries and any other third parties.

                  (c) The  Supplemental  Lenders  hereby agree that any payments
(other than  payments on account of the Unsecured  Supplemental  Loans under the
Vestar  Guarantee)  received on account of the Supplemental  Loans (whether from
the Company, with the proceeds of Collateral,  under any Guarantee,  pursuant to
any right of setoff or otherwise) prior to the  indefeasible  payment in full of
the  Primary  Obligations  which are then due and  payable  shall be held by the
Supplemental  Lenders  in trust for the  other  Lenders  and  shall be  promptly
delivered to the Agent for ratable distribution to such other Lenders on account
of the  Primary  Obligations  (with any excess  amounts  being  refunded  to the
Secured  Supplemental  Lenders  after the  indefeasible  payment  in full of the
Primary Obligations).

             SECTION 10. CERTAIN PROVISIONS APPLICABLE TO THE LOANS
                              AND LETTERS OF CREDIT

                  10.1  Termination  or  Reduction of  Commitments.  The Company
shall  have the  right,  upon not less than five  Business  Days'  notice to the
Agent,  to  terminate  any  Commitments  or,  from time to time,  to reduce  the
aggregate amount of any Commitment hereunder.  Any such reduction shall be in an
amount  equal  to  $1,000,000  or a whole  multiple  thereof  and  shall  reduce
permanently the Commitments then in effect.

     10.2 Optional and Mandatory  Prepayments.  (a) Any Borrower may at any time
and from time to time prepay any Loans (other than, to the extent that any other
Loans are then outstanding, the Unsecured Supplemental Loans, and provided, that
the  Incremental  Dollar  Loans  shall be paid or  prepaid  in full  before  any
voluntary  prepayment is made on account of any Domestic  Revolving Credit Loans
unless such  voluntary  prepayment  is made to enable the Company to request the
issuance of  additional  Letters of Credit under the Domestic  Revolving  Credit
Commitment and then such voluntary  prepayment shall be limited to the amount of
such  anticipated  issuance  of  additional  Letters  of  Credit,  and  that the
Incremental Sterling Loans shall be paid or prepaid in full before any voluntary
prepayment is made on account of any UK Revolving Credit Loans),  in whole or in
part without premium or penalty,  upon at least three Business Days' irrevocable
notice to the Agent (in the case of Eurodollar Loans or Domestic Sterling Loans)
or one Business Day's irrevocable  notice to the Agent (in the case of ABR Loans
or Sterling  Base Rate  Loans).  Upon receipt of any such notice the Agent shall
promptly notify each affected Lender thereof.  If any such notice is given,  the

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amount  specified in such notice shall be due and payable on the date  specified
therein,  together with any amounts  payable  pursuant to  subsection  10.13 and
(except in the case of prepayments of the Domestic Revolving Credit Loans or the
UK Revolving Credit Loans which are not accompanied by a permanent  reduction of
the  Domestic   Revolving   Credit   Commitments  or  the  UK  Revolving  Credit
Commitments,  as the case may be)  accrued  interest  to such date on the amount
prepaid.  Partial  prepayments  of the Domestic Term Loans and the UK Term Loans
shall be applied pro rata to the remaining  installments  of principal  thereof.
Amounts prepaid on account of the Domestic Term Loans, the UK Term Loans and the
Supplemental  Loans  may  not be  reborrowed.  Partial  prepayments  under  this
subsection  shall be in an  aggregate  principal  amount of  $500,000 or a whole
multiple  of  $100,000  in excess  thereof  (in the case of  Domestic  Loans) or
(pound)350,000  or a whole multiple of  (pound)100,000 in excess thereof (in the
case of UK Loans).
                  (b) As promptly as practicable following the occurrence of any
Prepayment  Event (and,  in any event,  within one  Business Day  following  the
receipt  by the  Company  or any of its  Subsidiaries  of the Net Cash  Proceeds
therefrom),  the  Borrowers  shall  prepay the Loans (in the manner,  and to the
extent, specified by subsection 10.2(f)) by the amount equal to 100% of such Net
Cash Proceeds.

                  (c) Within 90 days  following the last day of each fiscal year
of the  Company  and,  in any  event,  not later  than the date  upon  which the
financial statements with respect to such fiscal year are delivered to the Agent
pursuant to subsection 13.4(a)  (commencing with the fiscal year ending December
31, 1997),  the Borrowers shall prepay Loans (in the manner,  and to the extent,
specified by subsection  10.2(f)) by the amount equal to 50% of Excess Cash Flow
for such  fiscal  year;  provided,  however,  that no such  prepayment  shall be
required to be so made if the Leverage Ratio  (calculated in accordance with the
provisions of subsection 14.16) on the last day of the fiscal year in respect of
which such prepayment would otherwise be required was less than or equal to 3.00
to 1.00.

     (d) If on any date  (including any date on which a Domestic  Borrowing Base
Certificate is delivered pursuant to subsection 13.4(j)) the aggregate principal
amount of the Domestic  Revolving  Credit  Exposure and the  Incremental  Dollar
Loans on such date exceeds the then  applicable  Domestic  Borrowing  Base,  the
Company shall immediately (and without notice or demand) prepay such Incremental
Dollar Loans or the Domestic Swing Line Loans (and, to the extent necessary, the
Domestic  Revolving Credit Loans) by the amount equal to such excess.  If on any
date the aggregate principal amount of the Domestic Revolving Credit Exposure on
such date exceeds the Domestic  Revolving Credit Commitments then in effect, the
Company shall  immediately  (and without  notice or demand)  prepay the Domestic
Swing Line Loans (and, to the extent  necessary,  the Domestic  Revolving Credit
Loans)  by the  amount  equal  to such  excess.  If on any  date  the  aggregate
principal amount of the Incremental  Dollar Loans exceeds the Incremental Dollar
Credit Commitments, the Company shall immediately (and without notice or demand)
prepay the Incremental Dollar Loans by the amount of such excess.

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     (e) If on any  date  (including  any  date  on  which a UK  Borrowing  Base
Certificate is delivered pursuant to subsection 13.4(j)) the aggregate principal
amount of the UK Revolving Credit Exposure and the Incremental Sterling Loans on
such date exceeds the then  applicable UK Borrowing  Base, the UK Borrower shall
immediately  (and without  notice or demand)  prepay such  Incremental  Sterling
Loans  and the UK  Swing  Line  Loans  (and,  to the  extent  necessary,  the UK
Revolving  Credit Loans) by the amount equal to such excess.  If on any date the
aggregate  principal  amount of the UK  Revolving  Credit  Exposure on such date
exceeds the UK  Revolving  Credit  Commitments  then in effect,  the UK Borrower
shall  immediately (and without notice or demand) prepay the UK Swing Line Loans
(and,  to the extent  necessary,  the UK Revolving  Credit  Loans) by the amount
equal to such  excess.  If on any date the  aggregate  principal  amount  of the
Incremental  Sterling Loans exceeds the Incremental Sterling Credit Commitments,
the UK Borrower  shall  immediately  (and without  notice or demand)  prepay the
Incremental Sterling Loans by the amount of such excess.

                  (f) All mandatory  prepayments pursuant to subsections 10.2(b)
and (c) shall be applied to the  prepayment of the Domestic  Term Loans,  the UK
Term Loans and the Secured  Supplemental  Loans (ratably between such Facilities
and ratably among the remaining  installments of principal of each thereof).  In
the event that any such amounts remain available for mandatory prepayments after
payment of the Loans as set forth above in this clause (f), then:

                  (i) the Applicable  Advance Rates shall  thereafter be reduced
         (but not to less than the Basic  Advance  Rates) by the  amount of such
         excess and the  Domestic  Revolving  Credit  Loans and the UK Revolving
         Credit  Loans  shall be  repaid to the  extent  that  they  exceed  the
         Domestic  Borrowing  Base or the UK Borrowing Base (as the case may be)
         then in effect; and

                  (ii)  any  such  amounts   remaining   after   application  in
         accordance  with clause (i) above shall be applied to the prepayment of
         the  Unsecured   Supplemental   Loans   (ratably  among  the  remaining
         installments of principal thereof).

All mandatory  prepayments pursuant to this subsection 10.2 shall be accompanied
by payment of  accrued  interest  through  the date of such  prepayment  and any
amounts  payable  under  subsection  10.13.  Amounts  prepaid  on account of the
Domestic  Term Loans,  the UK Term Loans and the  Supplemental  Loans may not be
reborrowed.

                  10.3 Conversion and Continuation Options. (a) Any Borrower may
elect from time to time to convert its Eurodollar Loans to ABR Loans or Domestic
Sterling  Loans to Sterling Base Rate Loans (as  applicable) by giving the Agent
at least two  Business  Days' prior  irrevocable  notice of such  election.  Any
Borrower  may elect  from time to time to  convert  its ABR Loans to  Eurodollar
Loans or Sterling Base Rate Loans to Domestic  Sterling Loans (as applicable) by
giving the Agent at least three Business Days' prior irrevocable  notice of such
election. Any such notice of conversion to Eurodollar Loans or Domestic Sterling
Loans  shall  specify  the length of the  initial  Interest  Period or  Interest
Periods  therefor.  Upon  receipt of any such  notice the Agent  shall  promptly
notify each affected Lender thereof.  ABR Loans and Sterling Base Rate Loans may

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be converted as provided herein,  provided that (i) no ABR Loan may be converted
into a Eurodollar  Loan and no Sterling  Base Rate Loan may be converted  into a
Domestic  Sterling Loan when any Event of Default has occurred and is continuing
and the Agent has or the Required Lenders have determined that such a conversion
is not appropriate, (ii) no ABR Loan may be converted into a Eurodollar Loan and
no Sterling Base Rate Loan may be converted into a Domestic  Sterling Loan after
the  date  that is one  month  prior  to the  Termination  Date  (in the case of
conversions of Domestic  Revolving Credit Loans or UK Revolving Credit Loans) or
to the date of the final  installment  of principal of the Domestic  Term Loans,
the UK Term  Loans or the  Supplemental  Loans  (in the case of  conversions  of
Secured  Supplemental Loans or Unsecured  Supplemental  Loans) or after the date
that is one month prior to the Incremental  Commitment  Termination Date (in the
case of conversions of Incremental  Loans) and (iii) no Supplemental  Loan which
is a  Eurodollar  Loan may be  converted  to an ABR  Loan at any  time  when (in
accordance with the provisions of clause (4) of the proviso to the definition of
the term "Interest  Period"  contained in subsection 1.1) such Supplemental Loan
could be maintained as a Eurodollar Loan hereunder.

                  (b) Any  Eurodollar  Loans or Domestic  Sterling  Loans may be
continued as such upon the expiration of the then current  Interest  Period with
respect  thereto  by the  relevant  Borrower  giving  notice  to the  Agent,  in
accordance  with the  applicable  provisions of the term  "Interest  Period" set
forth in  subsection  1.1,  of the  length  of the next  Interest  Period  to be
applicable to such Eurodollar Loans or Domestic  Sterling Loans, as the case may
be, provided that no Eurodollar Loan or Domestic  Sterling Loan may be continued
as such (i) when any Event of Default has  occurred  and is  continuing  and the
Agent has or the Required  Lenders have  determined  that such a continuation is
not  appropriate  or  (ii)  after  the  date  that  is one  month  prior  to the
Termination  Date (in the case of  continuations  of Domestic  Revolving  Credit
Loans or UK  Revolving  Credit  Loans) or the date of the final  installment  of
principal  of the  Domestic  Term Loans,  the UK Term Loans or the  Supplemental
Loans (in the case of continuations of Secured  Supplemental Loans and Unsecured
Supplemental Loans) or after the date that is one month prior to the Incremental
Commitment  Termination  Date (in the case of conversions of Incremental  Loans)
and provided,  further,  that if such Borrower shall fail to give such notice or
if  such  continuation  is not  permitted  such  Loans  shall  be  automatically
converted to ABR Loans (in the case of  Eurodollar  Loans) or Sterling Base Rate
Loans  (in the case of  Domestic  Sterling  Loans)  on the last day of such then
expiring Interest Period.

                  10.4 Minimum Amounts of Tranches. All borrowings,  conversions
and  continuations  of Eurodollar  Loans and Domestic  Sterling  Loans,  and all
selections of Interest Periods, shall be in such amounts and be made pursuant to
such elections so that,  after giving effect  thereto,  the aggregate  principal
amount of the Eurodollar  Loans or Domestic  Sterling Loans, as the case may be,
comprising  each  Tranche  shall be not  less  than  $1,000,000  (in the case of
Eurodollar  Loans) and  (pound)750,000  (in the case of Domestic Sterling Loans)
and there shall not be more than 10 Tranches of Eurodollar  Loans and 5 Tranches
of Domestic Sterling Loans at any one time outstanding.

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<PAGE>

                  10.5  Interest  Rates and  Payment  Dates for Loans.  (a) Each
Eurodollar  Loan shall bear  interest for each day during each  Interest  Period
with  respect  thereto at a rate per annum equal to the  Adjusted  LIBO Rate for
such Interest Period plus the Applicable Margin.

                  (b) Each ABR Loan  shall  bear  interest  at a rate per  annum
equal to the ABR plus the Applicable Margin.

                  (c) Each  Domestic  Sterling Loan shall bear interest for each
day during each Interest  Period with respect  thereto at a rate per annum equal
to the  Adjusted  Domestic  Sterling  Rate for  such  Interest  Period  plus the
Applicable Margin.

                  (d) Each Sterling Base Rate Loan shall bear interest at a rate
per annum equal to the Sterling Base Rate plus the Applicable Margin.

                  (e) If any  Borrower  shall  default  in  the  payment  of the
principal or interest on any Loan or any other amount  becoming due hereunder or
under any Security Document, by acceleration or otherwise, the Borrower shall on
demand from time to time pay interest,  to the extent  permitted by law, on such
defaulted  amount to but excluding the date of actual  payment (after as well as
before  judgment) at a rate per annum equal to (a) in the case of any Loan,  the
rate applicable to such Loan under subsection  10.5(a),  (b), (c) or (d), as the
case may be, plus 2% per annum and (b) in the case of any other amount owing (i)
with respect to Domestic Loans, the rate that would be applicable to an ABR Loan
under  subsection  10.5(b)  plus 2% per annum and (ii) with respect to UK Loans,
the rate that would be applicable to a Sterling Base Rate Loan under  subsection
10.5(d) plus 2% per annum.

                  (f)  Interest  on Loans  shall be  payable  in arrears on each
Interest Payment Date or as otherwise specified herein;  provided, that interest
accruing pursuant to paragraph (e) of this subsection shall be payable from time
to time on demand.

                  10.6     Inability to Determine Interest Rate.  If, prior to
 the date which is two Business Days prior to the first day of any Interest
 Period:

                  (a) the Agent shall have determined (which determination shall
         be conclusive  absent manifest error) that, by reason of  circumstances
         affecting the relevant market generally,  adequate and reasonable means
         do not exist for ascertaining the LIBO Rate or Domestic  Sterling Rate,
         as applicable, for such Interest Period, or

                  (b) the Agent shall have received  notice from Lenders  having
         Commitments  comprising  at least  25% of the  aggregate  amount of the
         affected  Commitments that the LIBO Rate or the Domestic Sterling Rate,
         as applicable,  determined or to be determined for such Interest Period
         will not  adequately  and fairly  reflect the cost to such  Lenders (as
         conclusively  certified by such Lenders) of making or maintaining their
         affected Loans during such Interest Period,

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<PAGE>

the Agent shall give telecopy or telephonic  notice thereof to the Borrowers and
the affected Lenders as soon as practicable thereafter.  If such notice is given
(x) any  Eurodollar  Loans  or  Domestic  Sterling  Loans,  as the  case may be,
requested to be made on the first day of such  Interest  Period shall be made as
ABR Loans or Sterling Base Rate Loans, respectively,  (y) any Loans that were to
have been converted on the first day of such Interest Period to Eurodollar Loans
or  Domestic  Sterling  Loans,  as the case may be,  shall  be  converted  to or
continued as ABR Loans or Sterling  Base Rate Loans,  respectively,  and (z) any
outstanding  Eurodollar  Loans or Domestic  Sterling  Loans, as the case may be,
shall be converted,  on the first day of such Interest  Period,  to ABR Loans or
Sterling Base Rate Loans, respectively.  Until such notice has been withdrawn by
the Agent, no further  Eurodollar Loans or Domestic  Sterling Loans, as the case
may be,  shall be made or continued as such,  nor shall the  Borrowers  have the
right to convert Loans to Eurodollar  Loans or Domestic  Sterling  Loans, as the
case may be.

                  10.7 Commitment Fee; Other Fees. (a) The Company agrees to pay
to the Agent,  for the account of each Domestic Lender, a commitment fee for the
period from and including the Closing Date to, but  excluding,  the  Termination
Date,  computed  for each day during  such period at the rate per annum equal to
the Applicable  Margin for commitment fees then in effect on the amount equal to
the average daily amount of the Available  Domestic  Revolving Credit Commitment
of such  Domestic  Lender  on such day.  Such  commitment  fee shall be  payable
quarterly,  in  arrears,  on the last day of each  March,  June,  September  and
December and on the Termination  Date or such earlier date on which the Domestic
Revolving Credit  Commitments shall terminate as provided herein,  commencing on
the first of such dates to occur after the date hereof.

     (b)  The  Company  agrees  to pay to the  Agent,  for the  account  of each
Incremental  Lender,  a commitment fee for the period from and including  August
18,  2000 to,  but  excluding,  the  Incremental  Commitment  Termination  Date,
computed  for each day  during  such  period at the rate per annum  equal to the
Applicable  Margin for commitment fees then in effect on the amount equal to the
average daily amount of the Available  Incremental  Dollar Credit  Commitment of
such  Incremental  Lender  on such day  plus the  average  daily  amount  of the
Available  Incremental  Sterling Credit Commitment of such Incremental Lender on
such day. Such  commitment fee shall be payable  quarterly,  in arrears,  on the
last day of each March,  June,  September  and December  and on the  Incremental
     Commitment  Termination  Date or such earlier date on which the Incremental
Dollar Credit Commitments or the Incremental Sterling Credit Commitments, as the
case may be, shall terminate as provided herein, commencing on the first of such
dates to occur after the date hereof.

                  (c)  The UK  Borrower  agrees  to pay to the  Agent,  for  the
account of each UK Lender,  a commitment  fee for the period from and  including
the Closing Date to, but excluding,  the Termination Date, computed for each day
during  such  period at the rate per annum  equal to the  Applicable  Margin for
commitment  fees then in effect on the amount equal to the average  daily amount
of the Available UK Revolving Credit Commitment of such Lender on such day. Such
commitment fee shall be payable quarterly,  in arrears,  on the last day of each
March, June,  September and December and on the Termination Date or such earlier
date on which the UK Revolving  Credit  Commitments  shall terminate as provided

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<PAGE>

herein, commencing on the first of such dates to occur after the date hereof.

                  (d)  The  Company  agrees  to pay to the  Agent,  for  its own
account,  the fees in the amounts and on the dates  agreed to by such parties in
writing prior to the date of this Agreement.

                  (d) The Company agrees to pay to the Agent, for the account of
each Lender,  a utilization fee for each day upon which the aggregate  principal
of the  Domestic  Revolving  Credit  Exposure and the  Incremental Dollar Loans
exceeds the amount which would be available under the Domestic Borrowing
Base if the Domestic  Borrowing  Base were  determined  using the Basic  Advance
Rates (i.e., without giving effect to any Increase Amount then in effect).  Such
utilization  fee shall be in the amount equal to 1/4 of 1% per annum on the then
outstanding   amount  of  such  Lender's  Domestic  Revolving  Credit  Exposure,
Incremental Credit Exposure,  UK Revolving Credit Exposure,  Domestic Term Loans
and UK Term Loans and shall be payable quarterly, in arrears, on the last day of
each March,  June,  September and December.  Nothing  contained  herein shall be
deemed to permit the Domestic  Revolving  Credit  Exposure at any date to exceed
the Domestic Borrowing Base then in effect.

                  10.8  Computation of Interest and Fees.  (a) Commitment  fees,
interest and Letter of Credit  commissions shall be calculated on the basis of a
360-day  year for the actual days  elapsed;  provided  that (i)  interest on ABR
Loans which is  determined by reference to the Prime Rate shall be calculated on
the basis of a 365/366-day year for the actual days elapsed and (ii) interest on
UK Loans shall be  calculated on the basis of a 365-day year for the actual days
elapsed.  The Agent  shall as soon as  practicable  notify the  Company  and the
affected  Lenders of each  determination  of an Adjusted LIBO Rate or a Domestic
Sterling  Rate.  Any  change in the ABR due to a change in the Prime Rate or the
Federal Funds Effective Rate shall be effective as of the opening of business on
the  effective  day of  such  change  in the  Prime  Rate or the  Federal  Funds
Effective  Rate,  respectively.  Any change in the  Sterling  Base Rate shall be
effective  as of the  opening of  business  on the day in which  such  change is
announced by Chase in London.  The Agent shall as soon as practicable notify the
Company and the affected  Lenders of the  effective  date and the amount of each
such change in interest rate

                  (b)  Each  determination  of an  interest  rate  by the  Agent
pursuant to any provision of this  Agreement  shall be conclusive and binding on
the relevant Borrower and the affected Lenders in the absence of manifest error.

                  10.9     Pro Rata Treatment and Payments.  (a)  Each borrowing
by a Borrower of Loans shall be made ratably by the Lenders holding the
Commitments to provide such Facility of Loans in accordance with their
respective Commitment Percentages thereof.

                  (b)  Whenever  any  payment  received  by the Agent under this
Agreement  or any Note is  insufficient  to pay in full all amounts then due and
payable to the Agent and the Lenders under this Agreement and the Notes:

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<PAGE>

(i)      If the Agent has not received a Payment Sharing Notice (or if the Agent
         has  received  a  Payment  Sharing  Notice  but the  Event  of  Default
         specified  in such  Payment  Sharing  Notice  has been  cured or waived
         pursuant to subsection  18.1 and by the Lenders holding the majority of
         the UK Revolving Credit Commitments), such payment shall be distributed
         pro rata  according to the  respective  Commitment  Percentages  of the
         Lenders  holding  Commitments or Loans on account of which such payment
         was made.

(ii)     If the Agent has received a Payment  Sharing  Notice  which  remains in
         effect (or, if the Event of Default  specified  therein has been waived
         pursuant  to  subsection  18.1,  but  not by the  Lenders  holding  the
         majority of the UK Revolving Credit Commitments), all payments received
         by the Agent under this  Agreement or any Note shall be  distributed by
         the Agent and  applied by the Agent and the  Lenders  in the  following
         order:  first,  to the payment of fees and  expenses due and payable to
         the Agent under and in connection with this Agreement;  second,  to the
         payment of all expenses due and payable  hereunder,  ratably  among the
         Lenders in accordance  with the aggregate  amount of such payments owed
         to each such  Lender;  third,  to the  payment of fees due and  payable
         under subsection 10.7, ratably among the Lenders in accordance with the
         Commitment  Percentage of each Lender of the Commitments for which such
         payment is owed;  fourth, to the payment of the interest accrued on all
         Loans and Notes and all  commissions  and fees set forth in  subsection
         4.3(a),  regardless of whether any such amount is then due and payable,
         ratably  among the Lenders in  accordance  with the  aggregate  accrued
         interest,  commissions and fees owed to each Lender on account thereof;
         fifth,  to the payment of the principal  amount of all Loans and Notes,
         regardless of whether any such amount is then due and payable,  ratably
         among the Lenders in  accordance  with the aggregate  principal  amount
         owed to each  such  Lender  and  sixth,  to the  payment  of any  other
         obligations  owing  hereunder,  ratably among the Lenders in accordance
         with the aggregate amount owed to each Lender; and any balance shall be
         returned to the relevant Borrower.

                  (c)  All  payments  (including  prepayments)  to be  made by a
Borrower on account of principal,  Reimbursement Obligations,  interest and fees
shall be made without set-off or counterclaim and shall be made to the Agent for
the account of the  applicable  Lenders at the office of the Agent  specified in
subsection 18.2, or at such other location as the Agent may direct,  on or prior
to 12:00 Noon, local time at the location of such office, in lawful money of the
currency in which the  Commitments  on account of which such  amounts  have been
paid are  denominated  and in  immediately  available  funds.  The  Agent  shall
distribute such payments in accordance with the provisions of subsection 10.9(a)
or (b), as the case may be, promptly upon receipt in like funds as received.

                  (d)  If  any  payment   hereunder   (other  than  payments  on
Eurodollar  Loans or Domestic  Sterling  Loans) becomes due and payable on a day
other than a Business Day, such payment shall be extended to the next succeeding
Business  Day.  If any  payment  hereunder  on a  Eurodollar  Loan or a Domestic
Sterling  Loan  becomes due and payable on a day other than a Business  Day, the
maturity  thereof shall be extended to the next  succeeding  Business Day unless
the  effect of such  extension  would be to extend  such  payment  into  another
calendar  month,  in which event such payment  shall be made on the  immediately
preceding Business Day. If any payment of principal shall be extended under this

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paragraph (d),  interest  thereon shall be payable at the then  applicable  rate
during such extension.

                  (e) Unless the Agent  shall have been  notified  in writing by
any Lender  prior to a borrowing  date that such Lender will not make the amount
which would constitute its Commitment  Percentage of the borrowing to be made on
such date  available to the Agent,  on such  borrowing date the Agent may assume
that such  Lender has made such amount  available  to the Agent and, in reliance
upon such  assumption,  make available to the relevant  Borrower a corresponding
amount.  If such  amount is made  available  to the Agent on a date  after  such
borrowing  date, such Lender shall pay to the Agent on demand an amount equal to
the product of (i) the daily average  Federal Funds  Effective  Rate during such
period as  determined by the Agent times (ii) such amount times (iii) a fraction
of which the numerator is the number of days from and including  such  borrowing
date to the date on which such amount becomes immediately available to the Agent
and of which the denominator is 360. A certificate of the Agent submitted to any
Lender with  respect to any  amounts  owing  under this  paragraph  (e) shall be
conclusive, in the absence of manifest error. If such amount is not in fact made
available  to the Agent by such Lender  within  three  Business  Days after such
borrowing  date,  the Agent  shall be  entitled  to recover  such  amount,  with
interest thereon at the rate per annum then applicable to ABR Loans, in the case
of  Domestic  Loans,  or  Sterling  Base  Rate  Loans,  in the case of UK Loans,
hereunder, within eight Business Days after demand, from the relevant Borrower.

                  (f) All payments and  prepayments on account of Loans and fees
hereunder on account of the Domestic Facilities shall be made in Dollars and all
payments and  prepayments  on account of Loans and fees  hereunder on account of
the UK Facilities shall be made in Pounds Sterling.

                  10.10 Illegality.  Notwithstanding any other provision herein,
if  the  adoption  of or  any  change  in  any  Requirement  of  Law  or in  the
interpretation   thereof  by  any  Governmental   Authority   charged  with  the
administration or  interpretation  thereof shall make it unlawful for any Lender
to make or maintain  Eurodollar Loans or Domestic  Sterling Loans, or to make or
maintain  extensions  of credit to one or more  Borrowers  contemplated  by this
Agreement,  the commitment of such Lender  hereunder to make Eurodollar Loans or
Domestic  Sterling  Loans  (as the case may be),  continue  Eurodollar  Loans or
Domestic  Sterling  Loans  (as  the  case  may be) as  such,  convert  Loans  to
Eurodollar  Loans or Domestic  Sterling  Loans (as the case may be) and maintain
extensions of credit to such Borrowers shall forthwith be canceled to the extent
necessary  to remedy or prevent such  illegality  and such  Lender's  Loans then
outstanding as Eurodollar Loans or Domestic Sterling Loans (as the case may be),
if any,  shall be  converted  automatically  to ABR Loans or Sterling  Base Rate
Loans,  respectively,  on the respective last days of the then current  Interest
Periods with respect to such Loans or within such earlier  period as required by
law. If any such  conversion  of a  Eurodollar  Loan or Domestic  Sterling  Loan
occurs on a day which is not the last day of the then  current  Interest  Period
with  respect  thereto,  the  relevant  Borrower  shall pay to such  Lender such
amounts, if any, as may be required pursuant to subsection 10.13.

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<PAGE>

                  10.11  Requirements  of  Law.  (a) If the  adoption  of or any
change in any Requirement of Law or in the interpretation or application thereof
or  compliance  by any Lender or any Issuing  Bank with any request or directive
(whether  or not  having  the  force  of law)  from  any  central  bank or other
Governmental Authority made subsequent to the date hereof:

                  (i)  shall  subject  any  Lender  or any  Issuing  Bank or any
         corporation  controlling such Lender or such Issuing Bank or from which
         such Lender or such Issuing  Bank obtains  funding or credit to any tax
         of any kind whatsoever  with respect to this  Agreement,  any Letter of
         Credit,  any  Application or any Eurodollar  Loan or Domestic  Sterling
         Loan made by it, or change the basis of  taxation  of  payments to such
         Lender or such  Issuing  Bank or such  corporation  in respect  thereof
         (except for Non-Excluded  Taxes covered by subsection 10.12 and changes
         in the rate of tax on the  overall  net  income of such  Lender or such
         Issuing Bank or such corporation);

                  (ii) shall  impose,  modify or hold  applicable  any  reserve,
         special deposit,  compulsory loan or similar requirement against assets
         held  by,  deposits  or other  liabilities  in or for the  account  of,
         advances,  loans  or  other  extensions  of  credit  by,  or any  other
         acquisition of funds by, any office of such Lender or such Issuing Bank
         or any corporation controlling such Lender or such Issuing Bank or from
         which such Lender or such Issuing Bank obtains  funding or credit which
         in the case of Eurodollar Loans or Domestic Sterling Loans, as the case
         may be, is not otherwise  included in the determination of the Adjusted
         LIBO Rate or Domestic Sterling Rate, as the case may be, hereunder or

                  (iii) shall  impose on such Lender or such Issuing Bank or any
         corporation  controlling such Lender or such Issuing Bank or from which
         such Lender or such Issuing  Bank  obtains  funding or credit any other
         condition;

and the result of any of the foregoing is to increase the cost to such Lender or
such  Issuing Bank or such  corporation,  by an amount which such Lender or such
Issuing Bank or such  corporation  deems to be material,  of making,  converting
into,  continuing or maintaining  Eurodollar Loans or Domestic Sterling Loans or
issuing or participating in Letters of Credit or to reduce any amount receivable
hereunder in respect thereof, then, in any such case, the Company shall pay such
Lender or such Issuing Bank any additional  amounts necessary to compensate such
Lender  or  such  Issuing  Bank  for  such  increased  cost  or  reduced  amount
receivable.

                  (b) If any Lender or any  Issuing  Bank shall have  determined
that the adoption of or any change in any  Requirement of Law regarding  capital
adequacy or in the  interpretation or application  thereof or compliance by such
Lender or such Issuing Bank or any corporation  controlling  such Lender or such
Issuing Bank or from which such Lender or such  Issuing Bank obtains  funding or
credit with any request or directive  regarding capital adequacy (whether or not
having the force of law) from any Governmental  Authority made subsequent to the
date hereof does or shall have the effect of reducing the rate of return on such
Lender's or such Issuing Bank's or such  corporation's  capital as a consequence
of its obligations hereunder or under any Letter of Credit to a level below that

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<PAGE>

which such Lender or such Issuing Bank or such  corporation  could have achieved
but for such change or compliance  (taking into  consideration  such Lender's or
such  Issuing  Bank's or such  corporation's  policies  with  respect to capital
adequacy)  by an  amount  deemed  by  such  Lender  or such  Issuing  Bank to be
material,  then, from time to time, the Company shall pay to such Lender or such
Issuing Bank such additional amount or amounts as will compensate such Lender or
such Issuing Bank for such reduction.

                  (c) In addition to, and without  duplication of, amounts which
may become  payable from time to time pursuant to paragraphs (a) and (b) of this
subsection  10.11,  the  Company  agrees to pay to each  Lender  which  requests
compensation under this paragraph (c) by notice to the Company,  on the last day
of each Interest Period with respect to any Eurodollar Loan or Domestic Sterling
Loan made by such Lender to the  Company,  at any time when such Lender shall be
required  to  maintain  reserves  against   "Eurocurrency   Liabilities"   under
Regulation  D of the Board (or,  at any time when such Lender may be required by
the Board or by any other  Governmental  Authority,  whether  within  the United
States,  the United  Kingdom or in another  relevant  jurisdiction,  to maintain
reserves  against any other category of liabilities  which includes  deposits by
reference  to which the  Adjusted  LIBO Rate or the  Domestic  Sterling  Rate is
determined  as provided in this  Agreement or against any category of extensions
of credit or other  assets of such Lender  which  includes  any such  Eurodollar
Loans or Domestic  Sterling  Loans),  an additional  amount  (determined by such
Lender's calculation or, if an accurate  calculation is impracticable,  estimate
using such means of  allocation  as such Lender  shall  determine)  equal to the
actual costs,  if any,  incurred by such Lender during such Interest Period as a
result of the  applicability of the foregoing  reserves to such Eurodollar Loans
or Domestic Sterling Loans, as the case may be.

                  (d) A  certificate  of each Lender or any Issuing Bank setting
forth (x) such amount or amounts as shall be necessary to compensate such Lender
or such  Issuing  Bank for  amounts  claimed  by it in good  faith  pursuant  to
paragraph  (a), (b) or (c) above,  as the case may be, and (y) setting  forth in
reasonable  detail an explanation of the basis for requesting such  compensation
and the  calculation  thereof,  shall be  delivered  to the Company and shall be
conclusive  absent  manifest  error.  The Company  shall pay each Lender or such
Issuing  Bank the amount  shown as due on any such  certificate  delivered to it
within 20 days after its receipt of the same.

                  (e)  The  agreements  in this  subsection  shall  survive  the
termination of this Agreement and the payment of the Loans and all other amounts
payable hereunder.

                  10.12 Taxes. (a) All payments made by the Borrowers under this
Agreement shall be made free and clear of, and without  deduction or withholding
for or on  account  of,  any  present or future  income,  stamp or other  taxes,
levies,  imposts,  duties,  charges,  fees,  deductions or withholdings,  now or
hereafter imposed, levied,  collected,  withheld or assessed by any Governmental
Authority, excluding, in the case of the Agent and each Lender, net income taxes
imposed on the Agent or such Lender (including,  without limitation, each Lender
in its  capacity  as the  Issuing  Bank),  as the case may be,  as a result of a
present  or former  connection  between  the  jurisdiction  of the  Governmental

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Authority imposing such tax and the Agent or such Lender (excluding a connection
arising  solely  from the Agent or such Lender  having  executed,  delivered  or
performed  its  obligations  or  received a payment  under,  or  enforced,  this
Agreement) (all such non-excluded taxes, levies, imposts, duties, charges, fees,
deductions and withholdings being hereinafter called  "Non-Excluded  Taxes"). If
any  Non-Excluded  Taxes are required to be withheld from any amounts payable to
the Agent or any Lender  hereunder,  the amounts so payable to the Agent or such
Lender shall be increased to the extent  necessary to yield to the Agent or such
Lender  (after  payment of all  Non-Excluded  Taxes)  interest or any such other
amounts  payable  hereunder  at the rates or in the  amounts  specified  in this
Agreement.  Whenever  any  Non-Excluded  Taxes are  payable  by a  Borrower,  as
promptly as possible  thereafter  such Borrower  shall send to the Agent for its
own account or for the account of such  Lender,  as the case may be, a certified
copy of an original  official  receipt received by such Borrower showing payment
thereof.  If such Borrower fails to pay any  Non-Excluded  Taxes when due to the
appropriate  taxing  authority  or  fails to remit  to the  Agent  the  required
receipts or other required documentary  evidence,  such Borrower shall indemnify
the Agent and such Lender for any incremental taxes,  interest or penalties that
may become  payable by the Agent or such Lender as a result of any such failure.
The agreements in this subsection 10.12(a) shall survive the termination of this
Agreement and the payment of the Loans and all other amounts payable hereunder.

                  (b) (i) Each Lender that is not incorporated under the laws of
the United States of America or a state  thereof  agrees that it will deliver to
the Company and the Agent on or before the date it becomes a Lender (x) two duly
completed  copies of United States Internal Revenue Service Form 1001 or 4224 or
successor  applicable  form,  as the case may be,  and (y) an  Internal  Revenue
Service Form W-8 or W-9 or successor  applicable  form, as the case may be. Each
such  Lender also agrees to deliver to the Company and the Agent (x) two further
copies  of the  said  Form  1001 or 4224  and  Form  W-8 or  W-9,  or  successor
applicable  forms or other  manner of  certification,  as the case may be, on or
before  the date that any such form  expires or  becomes  obsolete  or after the
occurrence  of any  event  (including,  without  limitation,  a  change  in such
Lender's  lending office)  requiring a change in the most recent form previously
delivered by it to the Company and the Agent,  and (y) obtain such extensions of
the time for filing and to renew  such forms and  certifications  thereof as may
reasonably be requested by the Company or the Agent,  unless in any such case an
event (including,  without limitation,  any change in treaty, law or regulation)
has occurred  prior to the date on which any such  delivery  would  otherwise be
required which renders all such forms  inapplicable  or which would prevent such
Lender from duly  completing and delivering any such form with respect to it and
such Lender so advises the Company and the Agent.  Such Lender shall certify (x)
in the case of a Form 1001 or 4224,  that it is  entitled  to  receive  payments
under this  Agreement  without  deduction or  withholding  of any United  States
federal  income  taxes  and  (y) in the  case of a Form  W-8 or W-9,  that it is
entitled to an exemption from United States backup withholding tax.

                  (ii)  In the event that:

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                  (a)  at the date of this Agreement, a Lender is not a
         Qualifying Lender; or

                  (b) a Lender ceases to be a Qualifying Lender, other than as a
         result  of  (i)  the   introduction  of,   suspension,   withdrawal  or
         cancellation   of,   or  change   in,   or   change  in  the   official
         interpretation, administration or application of, any law or regulation
         having  the  force  of law  or  any  published  practice  or  published
         concession of any relevant taxing  authority in any  jurisdiction  with
         which that Lender has a  connection,  occurring  after the date of this
         Agreement or (ii) the amendment, withdrawal,  suspension,  cancellation
         or termination of any applicable tax treaty with respect to that Lender
         occurring after the date of this Agreement;

then no Borrower who is resident in the United  Kingdom will be liable to pay to
such a Lender  under  subsection  10.12 any amount in respect of taxes levied or
imposed  by the  United  Kingdom  or any  taxing  authority  of or in the United
Kingdom in excess of the amount it would have been obliged to pay if such Lender
had been a Qualifying Lender.

                  10.13 Indemnity. Each Borrower agrees to indemnify each Lender
and to hold each Lender  harmless  from any loss or expense (but  excluding  any
lost  profits)  which such Lender may sustain or incur as a  consequence  of (a)
default by such  Borrower  in  payment  when due of the  principal  amount of or
interest on any Eurodollar  Loan or Domestic  Sterling Loan, (b) default by such
Borrower in making a borrowing of, conversion into or continuation of Eurodollar
Loans  or  Domestic  Sterling  Loans  after  such  Borrower  has  given a notice
requesting  the same in accordance  with the provisions of this  Agreement,  (c)
default  by such  Borrower  in making  any  prepayment  of  Eurodollar  Loans or
Domestic  Sterling  Loans  after  such  Borrower  has given a notice  thereof in
accordance  with  the  provisions  of this  Agreement,  or (d) the  making  of a
payment, prepayment or conversion of Eurodollar Loans or Domestic Sterling Loans
on a day which is not the last day of an Interest  Period with respect  thereto,
including,  without  limitation,  in each case, any such loss or expense arising
from the reemployment or repayment of funds obtained by such Lender or from fees
payable to terminate  the  deposits  from which such funds were  obtained.  This
covenant shall survive the  termination of this Agreement and the payment of the
Loans and all other amounts payable hereunder.

                  10.14    Determinations.    In   making   the   determinations
contemplated by subsections  10.11,  10.12 and 10.13,  each Lender may make such
estimates, assumptions,  allocations and the like that such Lender in good faith
determines to be appropriate.  Upon request of the Company, each relevant Lender
shall furnish to the Company,  at any time after demand for payment of an amount
under subsection 10.12(a) or 10.13, a certificate outlining in reasonable detail
the  computation of any amounts  owing.  Any  certificate  furnished by a Lender
shall be binding and conclusive in the absence of manifest error.

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                  10.15 Lock Box  Accounts.  Any amounts  received  from time to
time in the Lock Box  Accounts  (as  defined  in the  Lock  Box  Agreements)  or
otherwise paid in accordance with the  requirements of subsection 14.21 shall be
applied:

                     (a) in the case of  amounts  owing to the  Company  and its
                  Domestic  Subsidiaries,  to repay, first, any then outstanding
                  Incremental Dollar Loans,  second,  any then outstanding
                  Domestic Swing Line Loans, third any then outstanding Domestic
                  Revolving Credit Loans, fourth, to cash collateralize any then
                  outstanding  Domestic Letters of Credit,  fifth, to prepay any
                  then outstanding Domestic Term Loans and, sixth, to prepay any
                  then outstanding Secured Supplemental Loans; and

                     (b) in the case of other amounts, to repay, first, any then
                  outstanding Incremental  Sterling Loans ,  second,  any
                  then  outstanding  UK  Swing  Line  Loans,   third,  any  then
                  outstanding  UK Revolving  Credit Loans and,  fourth,  to cash
                  collateralize any then outstanding UK Letters of Credit.

The Company hereby  acknowledges and agrees that all fees and expenses  incurred
by the Agent, any Lender or the Company with regard to a Lock Box Agreement, the
lock  boxes  established   pursuant  thereto  and  any  concentration   accounts
established in connection therewith shall be the obligation of the Company.

                   SECTION 11. REPRESENTATIONS AND WARRANTIES

                  To induce the Agent and the  Lenders  (including  the  Issuing
Bank)  to  enter  into  this  Agreement  and to make the  extensions  of  credit
hereunder,  each Borrower  hereby  represents and warrants to the Agent and each
Lender that:

                  11.1  Organization;  Powers.  Such  Borrower  and  each of the
Subsidiaries  (a) is a corporation  or limited  liability  company which is duly
organized,  validly  existing  and  in  good  standing  under  the  laws  of the
jurisdiction of its  organization,  (b) has all requisite power and authority to
own its property and assets and to carry on its business as now conducted and as
proposed  to be  conducted,  (c) is  qualified  to do  business  and is in  good
standing in every  jurisdiction  where such  qualification  is required,  except
where the  failure so to qualify  or be in good  standing  would not result in a
Material Adverse Effect,  and (d) has the corporate or limited liability company
(as the case may be) power and  authority  to  execute,  deliver and perform its
obligations  under  each  of  the  Recapitalization  Documents  and  each  other
agreement or instrument  contemplated  thereby to which it is or will be a party
and, in the case of such Borrower, to borrow hereunder.

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                  11.2 Authorization. The execution, delivery and performance by
each  of such  Borrower  and the  Subsidiaries  of each of the  Recapitalization
Documents to which it is a party and the borrowings  hereunder,  the creation of
the  security  interests   contemplated   thereby  and  the  other  transactions
contemplated  hereby and thereby (a) have been duly  authorized by all requisite
corporate  or limited  liability  company (as the case may be) and, if required,
stockholder  or member  action and (b) will not (i) violate (A) any provision of
law,  statute,  rule  or  regulation,  other  than  any  law,  statute,  rule or
regulation the violation of which will not result in a Material  Adverse Effect,
or of the certificate or articles of incorporation or limited  liability company
agreement or other  constitutive  documents  or by-laws of such  Borrower or any
Subsidiary,  (B) any order of any  Governmental  Authority  or (C) any  material
provision of any material indenture, agreement or other instrument to which such
Borrower  or any  Subsidiary  is a party or by which any of them or any of their
property  (including the Mortgaged  Property) or assets is or may be bound, (ii)
be in conflict with,  result in a breach of, constitute (alone or with notice or
lapse of time or both) a default  under or give rise to any right to  accelerate
any material obligation on the part of such Borrower or any Subsidiary under any
such indenture, agreement or other instrument or (iii) result in the creation or
imposition  of any  Lien  (other  than  any  Lien  created  under  the  Security
Documents) upon or with respect to any property or assets now owned or hereafter
acquired by such Borrower or any Subsidiary.

                  11.3 Enforceability.  This Agreement (or the Joinder Agreement
to which it is a party, as the case may be) has been duly executed and delivered
by such Borrower.  This Agreement  constitutes,  and each other Recapitalization
Document  when  executed  and  delivered  by such  Borrower  and/or  each of the
Subsidiaries  party  thereto  will  constitute,   a  legal,  valid  and  binding
obligation  of such Borrower  and/or such  Subsidiary  enforceable  against such
Borrower  and/or  such  Subsidiary  in  accordance  with its  terms,  subject to
bankruptcy, insolvency, reorganization, fraudulent transfer, moratorium or other
similar laws affecting  creditors' rights generally and to general principles of
equity (regardless of whether such  enforceability is considered in a proceeding
at law or in equity).

                  11.4  Approvals.  (a)  No  action,  consent  or  approval  of,
registration or filing with or any other action by any Governmental Authority is
or will be required in connection with the Recapitalization,  except for (i) the
filing of Uniform  Commercial  Code  financing  statements  and filings with the
United  States  Patent and  Trademark  Office and the  United  States  Copyright
Office,  (ii)  recordation of the Company Mortgage and (iii) such others as have
been made or obtained and are in full force and effect.

                     (b)  No consent or authorization of any Person (other than
any Governmental Authority) is required in connection with the Recapitalization,
except such consents and authorizations (i) as have been  obtained  and are in
full force and effect or (ii) the failure of which to obtain could not
reasonably be expected to have a Material Adverse Effect.

                  11.5  Financial  Statements.  (a) The Company  has  heretofore
furnished  to the Lenders its  consolidated  balance  sheets and  statements  of
income and changes in  financial  condition  (i) as of and for the fiscal  years

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ended  December 31, 1994, and December 31, 1995,  audited by and  accompanied by
the opinion of Coopers & Lybrand LLP,  independent public accountants,  and (ii)
as of and for the fiscal  quarter  ended March 30, 1996,  certified by its chief
financial  officer.  Such  financial  statements  present  fairly the  financial
condition  and  results  of  operations  of the  Company  and  its  consolidated
Subsidiaries  as of such  dates  and for  such  periods  and  were  prepared  in
accordance  with GAAP  applied on a  consistent  basis,  except,  in the case of
unaudited  statements,  for normal year-end audit adjustments and the absence of
notes.  Such balance  sheets and the notes  thereto  disclose  all  liabilities,
direct or contingent, of the Company and its consolidated Subsidiaries as of the
dates thereof  which are required by GAAP to be so disclosed or which  otherwise
could have a Material Adverse Effect.

                  (b) The UK Borrower  has  heretofore  furnished to the Lenders
its  consolidated  balance  sheets  and  statements  of income  and  changes  in
financial  condition (i) as of and for the fiscal years ended December 31, 1994,
and December 31, 1995,  audited by and  accompanied  by the opinion of Coopers &
Lybrand LLP,  independent public accountants.  Such financial statements present
fairly the financial  condition and results of operations of the UK Borrower and
its  consolidated  Subsidiaries  as of such dates and for such  periods and were
prepared in  accordance  with  generally  accepted  accounting  principles as in
effect in the United Kingdom on the date hereof  applied on a consistent  basis.
Such balance  sheets and the notes  thereto  disclose all material  liabilities,
direct or contingent, of the UK Borrower and its consolidated Subsidiaries as of
the  dates  thereof  which  are  required  by GAAP to be so  disclosed  or which
otherwise could have a Material Adverse Effect.

                  (c)  The  Company  has  heretofore  furnished  to the  Lenders
unaudited pro forma consolidated balance sheets as of March 30, 1996, which were
prepared  giving  effect to the  Recapitalization  as if it had occurred on such
date.  Such pro forma balance sheets have been prepared based on the assumptions
used  to  prepare  the  pro  forma  financial   information   contained  in  the
Confidential  Information  Memorandum,  are based on the most recent information
available  to the  Company  as of the  date of  delivery  thereof,  reflect  all
adjustments  believed by  management  in good faith to be required to be made in
order to give effect to the  Recapitalization  and present fairly on a pro forma
basis the  estimated  consolidated  financial  position  of the  Company and its
Subsidiaries  as of March  30,  1996,  assuming  that the  Recapitalization  had
actually occurred at March 30, 1996.

                  (d) The Company has  heretofore  furnished  to the Lenders its
unaudited pro forma consolidated statement of income for the period of 12 fiscal
months  ended on March  30,  1996,  which  was  prepared  giving  effect  to the
Recapitalization  as if it had  occurred on the first day of such  fiscal  year.
Such statement of income is based on the most reasonable  information  available
to the  Company as of the date of delivery  thereof,  reflects  all  adjustments
believed by  management in good faith to be required to be made in order to give
effect to the  Recapitalization  and  presents  fairly on a pro forma  basis the
estimated results of operations of the Company and its consolidated Subsidiaries
for the period of 12 fiscal  months ended on March 30, 1996,  assuming  that the
Recapitalization had actually occurred on the first day thereof.

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                  11.6 No Material  Adverse  Change.  There has been no material
adverse  change  in the  business,  assets,  operations,  properties,  financial
condition, contingent liabilities, or material agreements of the Company and the
Subsidiaries,  taken as a whole,  since  December 31, 1995 (it being  understood
that the  Recapitalization,  in  itself,  does not  constitute  such a  material
adverse change).

                  11.7 Title to Properties; Possession Under Leases. (a) Each of
such Borrower and the  Subsidiaries  has good and marketable  title to, or valid
leasehold  interests in, all its material  properties and assets  (including all
Mortgaged  Property),  other than leasehold interests in retail store properties
to the extent that the termination of such leasehold interests would not, in the
aggregate,  reasonably be expected to have a Material  Adverse Effect.  All such
material  properties  and assets  are free and clear of Liens,  other than Liens
expressly  permitted by subsection 14.2 (but with respect to any  representation
made as of the Closing Date, not including clauses (c), (l) and (n) thereof). No
material  portion  of any  Mortgaged  Property  shall be  subject  to any lease,
license,  sublease or other  agreement  granting to any person any right to use,
occupy or enjoy the same.

                     (b)  Except as set forth on Schedule V, such Borrower has ,
not received any notice of, nor has any knowledge of any pending or
contemplated  Condemnation  proceeding (as defined in subsection 8.18(b))
affecting the Mortgaged Property or any sale or disposition  thereof in
lieu of condemnation.

                     (c)  Except as set forth on Schedule V, such Borrower is
not obligated under any right of first refusal, option or other contractual
right to sell, assign or otherwise dispose of any Mortgaged Property or any
interest therein.

                  11.8  Subsidiaries.  Schedule  XI sets forth as of the Closing
Date a list of all  Subsidiaries  of the  Company and the  percentage  ownership
interest of the Company therein.

                  11.9 Litigation; Compliance with Laws. (a) Except as set forth
on Schedule  VI, there are not any actions,  suits or  proceedings  at law or in
equity  or by or  before  any  Governmental  Authority  now  pending  or, to the
knowledge of such Borrower, threatened against or affecting such Borrower or any
Subsidiary  or any business,  property,  assets or rights of any such Person (i)
that involve any Recapitalization Document or the Recapitalization or (ii) as to
which there is a reasonable possibility of an adverse determination and that, if
adversely  determined,  could,  individually or in the aggregate,  reasonably be
expected to result in a Material Adverse Effect.

                     (b)  None of such Borrower nor any of its Subsidiaries (i)
nor any of their respective material properties or assets is in violation
of, nor will the continued  operation of their  material properties and
assets as currently operated violate,   any  law,  rule,   regulation
or statute (including any zoning, building,  Environmental Law, ordinance,  code
or approval or any building permits) or any restrictions of record or agreements

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<PAGE>

affecting  the  Mortgaged  Property,  or (ii) is in default  with respect to any
judgment, writ, injunction, decree or order of any Governmental Authority, where
(in the case of clauses (i) and (ii)) such violation or default could reasonably
be expected to result in a Material Adverse Effect.

                     (c)  To the extent required by applicable law in the
jurisdiction in which the Mortgaged Property is located, certificates of
occupancy and permits are in effect for the Mortgaged Property as currently
constructed.

                  11.10  Agreements.  (a) Neither  such  Borrower nor any of the
Subsidiaries  is a party  to any  agreement  or  instrument  or  subject  to any
corporate or limited  liability  company  restriction that has resulted or could
reasonably be expected to result in a Material Adverse Effect.

                     (b)  Neither such Borrower nor any of the Subsidiaries is
in default in any manner under any provision of any indenture or other
agreement or instrument evidencing Indebtedness, or any other material agreement
or instrument to which it is a party or by which it or any of its  properties
or  assets  are or may  be  bound,  where  such  default  could reasonably be
expected to result in a Material Adverse Effect.

                  11.11  Federal Reserve Regulations.  (a)  Neither such
Borrower nor any of the Subsidiaries is engaged principally, or as one of
its important activities, in the business of extending credit for the purpose of
purchasing or carrying Margin Stock.

                     (b)  No part of the proceeds of any Loan or any Letter of
Credit has been or will be used by such Borrower or any  of  its
Subsidiaries,   whether  directly  or  indirectly,   and  whether
immediately,  incidentally or ultimately,  (i) to purchase or carry Margin Stock
or to extend credit to others for the purpose of  purchasing or carrying  Margin
Stock or to refund  indebtedness  originally  incurred for such purpose, or (ii)
for any purpose that entails a violation of, or that is  inconsistent  with, the
provisions of the Regulations of the Board, including Regulation G, U and X.

                  11.12  Investment  Company Act; Public Utility Holding Company
Act. Neither such Borrower nor any Subsidiary (a) is an "investment  company" as
defined in, or subject to regulation  under, the Investment  Company Act of 1940
or (b) is a "holding company" as defined in, or subject to regulation under, the
Public Utility Holding Company Act of 1935.

                  11.13 Tax Returns.  Such Borrower and each of its Subsidiaries
has filed or caused to be filed all Federal tax returns and  material  state and
local tax returns  required  to have been filed by it or with  respect to it and
has paid or accrued or caused to be paid or  accrued  all taxes  shown to be due
and payable on such returns or on any assessments  made against it or any of its
property and all other taxes,  fees or other charges imposed on it or any of its
property by any Governmental Authority, except taxes that are being contested in
good faith by appropriate  proceedings  and for which it shall have set aside on

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its books adequate  reserves in accordance  with GAAP. Such Borrower and each of
its Subsidiaries has filed or made adequate provision in accordance with GAAP on
its  books  for  any  material  taxes  payable  by it  in  connection  with  the
Recapitalization  (including any such taxes payable in respect of  indemnities).
No tax Lien has been filed and, to the knowledge of such  Borrower,  no claim is
being asserted with respect to any such tax, fee or other charge.

                  11.14  No  Material  Misstatements.  No  written  information,
report,  financial  statement,  exhibit or schedule furnished by or on behalf of
such Borrower to the Agent or any Lender in connection  with the  negotiation of
any Loan Document or included  therein or delivered  pursuant thereto when taken
as a whole,  as of the  date  such  information,  report,  financial  statement,
exhibit or schedule  was  furnished,  contained,  contains  or will  contain any
material  misstatement  of fact or  omitted,  omits or will  omit to  state  any
material  fact  necessary to make the  statements  therein,  in the light of the
circumstances  under  which  they  were,  are or will be made,  not  misleading;
provided,  however,  that, (a) to the extent any such information was based upon
or constituted a forecast or projection,  such Borrower  represents only that it
acted in good faith and utilized assumptions believed by it to be reasonable and
(b) as to information that is specified as having been supplied by third parties
(other than Affiliates of the Company), such Borrower represents only that it is
not aware of any material misstatement therein or material omission therefrom.

                  11.15  Employee  Benefit  Plans.  The  Company,  each  of  its
Subsidiaries  and each ERISA  Affiliate  is in  compliance  with the  applicable
provisions   of  ERISA  and  the  Code  and  the   regulations   and   published
interpretations  thereunder,  except where failure to comply therewith could not
reasonably be expected to have a Material  Adverse Effect.  The present value of
all benefit  liabilities  under each Plan (based on those assumptions that would
be used in a termination of such Plan) did not, as of the last annual  valuation
date applicable thereto,  exceed by more than $5,000,000 the value of the assets
of such Plan, on a Form 5500 reporting  basis.  None of the Company,  any of its
Subsidiaries or any ERISA Affiliate has incurred any Withdrawal  Liability in an
amount that could reasonably be expected to result in a Material Adverse Effect.
None of the Company, any of its Subsidiaries or any ERISA Affiliate has received
any notification  that any  Multiemployer  Plan is in reorganization or has been
terminated within the meaning of Title IV of ERISA, and no Multiemployer Plan is
reasonably  expected  to be in  reorganization  or to be  terminated  where such
reorganization  or termination  has resulted or could  reasonably be expected to
result,  through increases in the contributions required to be made to such Plan
or otherwise, in a Material Adverse Effect.

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                  11.16  Environmental   Matters.  (a)  The  properties  now  or
formerly  owned  or  operated  by  such  Borrower  and  its  Subsidiaries   (the
"Properties")   do  not  contain   any   Hazardous   Materials   in  amounts  or
concentrations  which (i)  constitute,  or  constituted  a violation of, or (ii)
could  give rise to  liability  under,  Environmental  Laws  resulting  from any
Release of  Hazardous  Materials  during such  Borrower's  or its  Subsidiaries'
ownership or operation of the  Properties or, to the knowledge of such Borrower,
at any other time,  which violations and  liabilities,  in the aggregate,  could
reasonably be expected to result in a Material Adverse Effect.

     (b) The Properties and all operations of such Borrower and its Subsidiaries
are  in  compliance,  and,  to  the  extent  that  such  Borrower  or any of its
Subsidiaries  owned or operated such  Properties in the past three years, in the
last three years have been in compliance,  with all  Environmental  Laws and all
Environmental Permits and all necessary Environmental Permits have been obtained
and are in effect,  except to the extent that such  non-compliance or failure to
obtain any necessary permits, in the aggregate, could not reasonably be expected
to result in a Material Adverse Effect.
     (c) During the time of such  Borrower's or its  Subsidiaries'  ownership or
operation of the Properties and, to the knowledge of such Borrower, at any other
time,  there have been no Releases or  threatened  Releases at,  from,  under or
proximate to the  Properties or otherwise in connection  with the  operations of
such Borrower or its Subsidiaries, which Releases or threatened Releases, in the
aggregate,  could reasonably be expected to result in a Material Adverse Effect,
and none of the Properties  currently owned or operated by such Borrower and its
Subsidiaries  are listed on the Federal  National  Priorities List (under CERCLA
and as defined pursuant to Environmental Law).
     (d) Neither  such  Borrower  nor any of its  Subsidiaries  has received any
Environmental  Claim in connection with the Properties or the operations of such
Borrower or its Subsidiaries or with regard to any Person whose  liabilities for
environmental matters such Borrower or its Subsidiaries has retained or assumed,
in whole or in part, contractually,  by operation of law or otherwise, which, in
the  aggregate,  could  reasonably  be expected to result in a Material  Adverse
Effect,  nor do such Borrower or any of its Subsidiaries  have reason to believe
that any such notice will be received or is being threatened.

     (e) Hazardous  Materials have not been  transported  from the Properties by
such Borrower or any of its  Subsidiaries or, to the knowledge of such Borrower,
any other party, nor have Hazardous Materials been generated, treated, stored or
disposed  of at,  on or  under  any of the  Properties  in a manner  that  could
reasonably  be expected to give rise to liability  under any  Environmental  Law
that would constitute a Material  Adverse Effect,  nor have such Borrower or any
of its  Subsidiaries  retained  or  assumed  any  liability,  contractually,  by
operation  of law or  otherwise,  with  respect  to the  generation,  treatment,
storage or disposal of Hazardous Materials,  which  transportation,  generation,
treatment,  storage or  disposal,  or  retained or assumed  liabilities,  in the
aggregate, could reasonably be expected to result in a Material Adverse Effect.

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                  11.17  Insurance.  Schedule X sets forth a true,  complete and
correct  description  of all material  insurance  maintained  by the Company for
itself and its  Subsidiaries  as of the Closing Date. As of each such date, such
insurance is in full force and effect and all premiums have been duly paid.  The
Company and its  Subsidiaries  have  insurance in such amounts and covering such
risks and liabilities as are in accordance with normal industry practice.

                  11.18  Solvency.  Immediately  after the  consummation  of the
Recapitalization  and immediately  following the making of each Loan made on the
Closing Date and after giving effect to the  application of the proceeds of such
Loans (a) the fair salable value of the assets of the Company on a  consolidated
basis will  exceed the amount  that will be required to be paid on or in respect
of the existing debts and other liabilities  (including contingent  liabilities)
of the Company on a  consolidated  basis as they  mature,  (b) the assets of the
Company on a consolidated  basis will not constitute  unreasonably small capital
to carry  out its  businesses  as  conducted  or as  proposed  to be  conducted,
including the capital needs of the Company on a consolidated  basis (taking into
account,  in each case, the particular  capital  requirements  of the businesses
conducted  by the Company and the  projected  capital  requirements  and capital
availability  of such  businesses),  and (c) the Company does not intend to, nor
does it believe that it or any Subsidiary  will,  incur debts beyond its ability
to pay such debts as they mature  (taking into account the timing and amounts of
cash to be  received by it and the amounts to be payable on or in respect of its
obligations).

                  11.19 Labor  Matters.  Except as set forth on Schedule VII, as
of the Closing Date,  there are no strikes  pending or  threatened  against such
Borrower  or any  Subsidiary.  Neither  the hours  worked and  payments  made to
employees  nor the Company and the  Subsidiaries  have been in  violation in any
material  respect of the Fair Labor  Standards Act or any other  applicable  law
dealing with such  matters.  All  payments due from such  Borrower or any of its
Subsidiaries, or for which any claim may be made against such Borrower or any of
its Subsidiaries,  on account of wages and employee health and welfare insurance
and  other  benefits,  have been paid or, to the  extent  required  under  GAAP,
accrued as a liability on the books of such Borrower or any of its Subsidiaries,
except to the  extent  that  failure to make such  payment or accrual  could not
reasonably  be  expected,  individually  or in the  aggregate,  to  result  in a
Material Adverse Effect.

                  11.20 Capitalization.  As of the Closing Date and after giving
effect to the  Recapitalization,  the  authorized  capital  stock of the Company
shall consist of  approximately  $7,700,000 of common  membership  interests and
approximately  $62,000,000  of  preferred  membership  interests.  Set  forth on
Schedule  XIII is a list of every Person that, as of the Closing Date (and after
giving effect to the consummation of the Recapitalization),  shall own of record
membership  interests  of the  Company,  together  with  the  Dollar  amount  of
membership interests so owned.

                  11.21  Security  Documents.   (a)  Each  Pledge  Agreement  is
effective  to create  in favor of the  Agent,  for the  ratable  benefit  of the
Lenders, a legal, valid and enforceable  security interest in the Collateral (as
defined in such Pledge Agreement) and proceeds thereof and, when such Collateral
is delivered to the Agent, and/or the appropriate filings have been made in each

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case  as set  forth  in such  Pledge  Agreement,  such  Pledge  Agreement  shall
constitute a fully perfected  first priority Lien on, and security  interest in,
all right, title and interest of the pledgors  thereunder in such Collateral and
the  proceeds  thereof,  in each case prior and  superior  in right to any other
Person.

                  (b) Each of the Security  Agreements is effective to create in
favor of the Agent, for the ratable benefit of the Lenders,  a legal,  valid and
enforceable  security  interest in the  Collateral  (as defined in each Security
Agreement) and proceeds  thereof and, when  financing  statements in appropriate
form are  filed in the  offices  specified  on  Schedule  IX,  the  Subsidiaries
Trademark Security Agreement and the Subsidiaries  Patent Security Agreement are
filed with and recorded by the United States Patent and  Trademark  Office,  the
appropriate  filings are made and  recorded  with the UK Register of Patents and
the UK  Register of  Trademarks  and the UK  Debenture  is  registered  with the
English Companies Registry and (where applicable) the UK Land Registry,  and/or,
if required under such Security  Agreement,  such Collateral is delivered to the
Agent.  Each of the Security  Agreements  shall constitute a fully perfected (to
the extent governed by the laws of the United States or the United Kingdom) Lien
on, and  security  interest  in, all right,  title and  interest of the grantors
thereunder in such Collateral and the proceeds  thereof,  in each case prior and
superior in right to any other  Person  (other than  Persons who have  delivered
releases  to the Agent on or prior to the  Closing  Date of any  prior  security
interests  held by such  Persons),  other  than with  respect  to the  rights of
Persons pursuant to Liens expressly permitted by subsection 14.2.

                  (c) The Company  Mortgage is  effective  to create in favor of
the  Agent,  for  the  ratable  benefit  of the  Lenders,  a  legal,  valid  and
enforceable Lien on all of the right,  title and interest of the Company and its
Subsidiaries  in and to the  Mortgaged  Property  thereunder  and  the  proceeds
thereof,  and when the Company  Mortgage is filed in the land records of City of
Bridgeport,  Connecticut,  the Company Mortgage shall constitute fully perfected
Liens on,  and  security  interests  in, all right,  title and  interest  of the
Company  and  its  Subsidiaries  in such  Mortgaged  Property  and the  proceeds
thereof,  in each case prior and  superior in right to any other  Person,  other
than with respect to the rights of Persons pursuant to Liens expressly permitted
by subsection 14.2.

                  (d) Each Lock-Box Agreement is effective to create in favor of
the Agent,  for the ratable  benefit of the Agent and the  Lenders,  a perfected
first Lien on, and security  interest  in, all right,  title and interest of the
Company or its  Subsidiary (as the case may be) party thereto in the proceeds of
accounts receivable and in all other monies received in any lock box established
pursuant to any Lock Box Agreement. The Company and each of its Subsidiaries has
notified the account  debtors in respect of each Account to make all payments in
respect of such Accounts through the lock boxes established pursuant to the Lock
Box Agreement. Notwithstanding the foregoing, the representations and warranties
contained in this subsection 11.21(d) shall be made by the Company only from and
after March 31, 1998.

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                  (e) For purposes of this subsection  11.21, the term "Lenders"
shall not include the Unsecured Supplemental Lenders.

                  11.22 Location of Real Property and Leased Premises.  (a) Part
A of Schedule  VIII lists  completely  and  correctly as of the Closing Date all
real  property  owned by the  Company  and the  Subsidiaries  and the  addresses
(including,  without  limitation,  the  counties in which such real  property is
located)  thereof.  The  Company  and the  Subsidiaries  own in fee all the real
property set forth on Part A of Schedule VIII.

     (b) Part B of  Schedule  VIII  lists  completely  and  correctly  as of the
Closing Date all real property leased by the Company and the  Subsidiaries,  and
the addresses  (including,  without limitation,  the counties in which such real
property is located) and names of the owners of such  leasehold  interests.  The
Company and its  Subsidiaries  have valid  leases in all the real  property  set
forth on Part B of Schedule VIII.

                  11.23   Recapitalization.   As  of  the  Closing  Date,   each
Recapitalization  Document  (other than any Loan  Document) is in full force and
effect in accordance with its terms.

                  11.24  Regulation H. The Mortgaged  Property is not located in
an area  that  has  been  identified  by the  Secretary  of  Housing  and  Urban
Development as an area having special flood hazards and in which flood insurance
has been made available under the National Flood Insurance Act of 1968.

                        SECTION 12. CONDITIONS PRECEDENT

The  obligations  of the Lenders to make Loans and of the Issuing  Bank to issue
Letters of Credit  hereunder  are subject to the  satisfaction  of the following
conditions:

                  12.1  Each Extension of Credit.  On the date of each extension
         of credit hereunder:

                     (a) Notice of  Borrowing.  The Agent shall have  received a
         notice of such borrowing as required by subsection  2.2, 3.2,3A.2,5.1,
         6.2,7.2, 8.1 or 9.2 (as the case may be) or, in the case of the
         issuance of a Letter of Credit,  the Issuing Bank and the Agent shall
         have received a notice  requesting  the issuance of such Letter of
         Credit as required by subsection 4.2.

                     (b) Representations and Warranties. Each representation and
         warranty  set  forth in  Section  11 shall be true and  correct  in all
         material  respects  on and as of the date of such  extension  of credit
         with the same effect as though  made on and as of such date,  except to
         the extent such  representation  and  warranty  expressly  relate to an
         earlier date.

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                     (c)  No Default.  At the time of and immediately after the
         making of such extension of credit, no Event of Default or
         Default shall have occurred and be continuing.

Each borrowing of Loans and issuance of a Letter of Credit hereunder (including,
without  limitation,  the  extensions  of credit to be made on the Closing Date)
shall be deemed to  constitute  a  representation  and  warranty by the relevant
Borrower on the date of such  borrowing or issuance as to the matters  specified
in paragraphs (b) and (c) above.  Continuations  and  conversions of outstanding
borrowings  pursuant to subsection 10.3 shall not be deemed to be borrowings for
the purpose of this Section 12.1.

                  12.2  Initial Extensions of Credit.  On the Closing Date:

                     (a)  Loan Documents.  The Agent shall have received:

                     (i)  counterparts  of this  Agreement,  duly  executed  and
                  delivered by the Company,  the UK Borrower,  the Issuing Bank,
                  the  Agent  and  each  Lender  (with a  counterpart  for  each
                  Lender);

                     (ii)  each of the Pledge Agreements, each executed and
                  delivered by a duly authorized officer of the party thereto;

                     (iii)  each of the Guarantees, each executed and delivered
                  by a duly authorized officer of the party thereto;

                     (iv)  each of the Security Agreements, each executed and
                  delivered by a duly authorized officer of the party thereto;

                     (v)  the Company Mortgage, executed and delivered by a duly
                  authorized officer of the Company; and

                     (vi) the Domestic  Swing Line Note,  the UK Swing Line Note
                  and for the account of each Lender that has so requested, such
                  Notes as shall have been  requested by such Lender,  each duly
                  executed  and  delivered by a duly  authorized  officer of the
                  Borrower which is the maker thereof.

                     (b) Legal  Opinions.  The Agent  shall  have  received,  on
         behalf of itself, the Lenders and the Issuing Bank, a favorable written
         opinion of (i)  Kirkland & Ellis,  counsel  for the Company and each of
         its   Domestic   Subsidiaries,   in  form  and   substance   reasonably
         satisfactory to the Agent, (ii) Howes Percival,  special counsel in the
         United  Kingdom to the UK Borrower,  in form and  substance  reasonably
         satisfactory  to the Agent and (iii)  local  counsel to the Company and
         its  Subsidiaries  described  in  Schedule  XII  hereto,  in  form  and
         substance reasonably satisfactory to the Agent. Each such legal opinion
         shall be (x) dated the Closing Date, (y) addressed to the Issuing Bank,
         the Agent and the Lenders,  and (z) covering  such matters  relating to

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         the  Recapitalization  Documents and the  Recapitalization as the Agent
         shall  reasonably  request;  the  Company  and the UK  Borrower  hereby
         instruct such counsel to deliver such opinions.

                     (c) Legal Matters Generally.  All legal matters incident to
         this Agreement,  the borrowings and extensions of credit  hereunder and
         the  Recapitalization  Documents shall be satisfactory to the Agent, to
         the  Lenders,  to the Issuing  Bank and to Simpson  Thacher & Bartlett,
         counsel for the Agent.

                     (d) Corporate Documents.  The Agent shall have received (i)
         a copy of the  certificate  or  articles  of  incorporation  (or  other
         analogous organizational  document),  including all amendments thereto,
         of the Company, each other Borrower and each Domestic Subsidiary of the
         Company, certified as of a recent date by the Secretary of State of the
         state of its  organization  (or, in the case of the UK  Borrower,  by a
         Responsible Officer thereof), and a certificate as to the good standing
         of the Company  and each of its  Domestic  Subsidiaries  as of a recent
         date, from such Secretary of State; (ii) a certificate of the Secretary
         or Assistant Secretary of each Borrower and each Domestic Subsidiary of
         the Company  dated the Closing Date and  certifying  (A) that  attached
         thereto is a true and complete copy of the by-laws or limited liability
         company  agreement  (or other  analogous  governing  document)  of such
         Borrower  or Domestic  Subsidiary,  as the case may be, as in effect on
         the Closing Date and at all times since a date prior to the date of the
         resolutions described in clause (B) below, (B) that attached thereto is
         a true and complete  copy of  resolutions  duly adopted by the Board of
         Directors or Management  Committee (or, if applicable,  other analogous
         governing  body) of such Borrower or Domestic  Subsidiary,  as the case
         may be,  authorizing  the  execution,  delivery and  performance of the
         Recapitalization  Documents to which such Person is a party and, in the
         case of a Borrower, the borrowings hereunder, and that such resolutions
         have not been modified,  rescinded or amended and are in full force and
         effect, (C) that the certificate or articles of incorporation (or other
         analogous  organizational  document) of such  Borrower or such Domestic
         Subsidiary, as the case may be, have not been amended since the date of
         the last  amendment  thereto shown on the  certificate of good standing
         furnished  pursuant to clause (i) above,  and (D) as to the  incumbency
         and  signature  of  each  officer  of the  Borrower  or  such  Domestic
         Subsidiary  executing  any  material  Recapitalization  Document or any
         other  document  delivered  in  connection  herewith  on behalf of such
         Borrower  or  Domestic  Subsidiary,   as  the  case  may  be;  (iii)  a
         certificate  of  another  officer  as to the  incumbency  and  specimen
         signature  of  the  Secretary  or  Assistant  Secretary  executing  the
         certificate  pursuant to (ii) above;  and (iv) such other  documents as
         the Agent, the Lenders, the Issuing Bank or Simpson Thacher & Bartlett,
         counsel for the Agent, may reasonably request.

                     (e) Fees.  The Agent shall have received all fees and other
         amounts due and payable on or prior to the Closing Date, including,  to
         the extent  invoiced,  reimbursement  or  payment of all  out-of-pocket

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<PAGE>

         expenses  required  to be  reimbursed  or paid by the  Company  and its
         Subsidiaries hereunder or under any other Loan Document.

                     (f) Capital Stock. All the outstanding Capital Stock of the
         Company and each Domestic Subsidiary and 65% of the outstanding Capital
         Stock of each Foreign  Subsidiary that is owned directly by the Company
         or any  Domestic  Subsidiary  shall have been duly and validly  pledged
         under a Pledge  Agreement  to the Agent for the ratable  benefit of the
         Lenders   (other  than  the   Unsecured   Supplemental   Lenders)   and
         certificates   representing   such  Capital   Stock,   accompanied   by
         instruments of transfer and stock powers endorsed in blank, shall be in
         the actual  possession  of the Agent (or, in the case of the Company or
         any Subsidiary with respect to which ownership  interests are evidenced
         by book  entry,  other  evidence  of the  perfection  of and  action to
         perfect such  security  interests as required by such Pledge  Agreement
         shall have been delivered and taken).

                     (g) Financing  Statements.  Each document  (including  each
         Uniform  Commercial  Code financing  statement)  required by law or the
         relevant Security  Document or reasonably  requested by the Agent to be
         filed,  registered or recorded in order to create in favor of the Agent
         for the benefit of the Lenders  (other than the Unsecured  Supplemental
         Lenders) a valid, legal and perfected (to the extent such perfection is
         governed  by the laws of the  United  States  or the  United  Kingdom),
         first-priority security interest in and Lien on the collateral (subject
         to any Lien  expressly  permitted by  subsection  14.2 and the relevant
         Security Document)  described in each Security Document shall have been
         delivered  to the  Agent  for  filing  and such  other  actions  as are
         necessary to cause the Liens granted  under each  Security  Document in
         favor of the Agent to be perfected  (to the extent such  perfection  is
         governed  by the laws of the  United  States  or the  United  Kingdom),
         first-priority  security  interests  (subject  to  any  Lien  expressly
         permitted by subsection 14.2 and the relevant Security  Document) shall
         have been taken.

                     (h)  Termination of Existing Credit  Facilities.  The Agent
         shall have received evidence  reasonably  satisfactory to it of (x) the
         termination  of the (i) the Loan  and  Security  Agreement  dated as of
         August 12, 1992 by and between Remington  Products Company,  a Delaware
         general partnership  ("RPC"), and The Provident Bank, (ii) the Loan and
         Security  Agreement  dated as of August 12, 1992 by and between RPC and
         People's Bank,  and (iii) the Accounts  Financing  Agreement  [Security
         Agreement]  dated August 12, 1996  between RPC and  Congress  Financial
         Corporation (New England) and Accounts  Financing  Agreement  [Security
         Agreement] dated December 24, 1993 between Remington  Consumer Products
         Limited and Congress Financial  Corporation (New England), in all cases
         as heretofore  amended,  supplemented  or otherwise  modified,  (y) the
         release  of all  Liens  created  or  maintained  thereby  and  (z)  the
         discharge of all the  obligations  of the Company and its  Subsidiaries
         thereunder.

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<PAGE>

                     (i) Lien Search.  The Agent shall have received the results
         of a search of the  Uniform  Commercial  Code  filings  (or  equivalent
         filings) made with respect to the Company and its Domestic Subsidiaries
         in the States (or other  jurisdictions)  in which are located the chief
         executive  offices of such  Persons or any  offices of such  Persons in
         which  records  have  been  kept  relating  to  Accounts  and the other
         jurisdictions  in which Uniform  Commercial Code filings (or equivalent
         filings) are to be made pursuant to clause (g) of this subsection 12.2,
         together with copies of the financing statements (or similar documents)
         disclosed by such search,  and accompanied by evidence  satisfactory to
         the Agent that the Liens indicated in any such financing  statement (or
         similar  document)  would be permitted  under  subsection  14.2 and the
         relevant Security Documents or have been released.

                     (j)  Mortgage.  (i) The  Company  Mortgage  shall have been
         filed  and  recorded  in  the  land  records  of  City  of  Bridgeport,
         Connecticut  (or a lender's  title  insurance  commitment,  in form and
         substance reasonably acceptable to the Agent, insuring the Lien of such
         Security  Document as a first Lien on such Mortgaged  Property (subject
         to any  Lien  listed  on  Schedule  B of  any  related  lender's  title
         insurance  policy  delivered  to the Agent prior to the  Closing  Date)
         shall have been  received by the Agent) and, in  connection  therewith,
         (ii) the Agent shall have  received such other  documents,  including a
         policy or policies of title insurance issued by a nationally recognized
         title insurance company,  together with such endorsements,  coinsurance
         and  reinsurance  as may be  reasonably  requested by the Agent and the
         Lenders,  insuring  the  Company  Mortgage as a valid first lien on the
         Mortgaged Property, free of Liens other than those listed on Schedule B
         of any related lender's title insurance policy or commitment  delivered
         to the Agent prior to the Closing Date,  together with such  abstracts,
         appraisals  and legal  opinions as may be  reasonably  requested by the
         Agent or the Lenders.

                     (k) Insurance.  The Agent shall have received a copy of, or
         a certificate as to coverage under, the insurance  policies required by
         subsection   13.2  and  the  applicable   provisions  of  the  Security
         Documents,  which certificate (and the information  referenced therein)
         shall be in form and substance reasonably satisfactory to the Agent.

                     (l) Recapitalization.  The Recapitalization shall have been
         consummated  or  shall be  consummated  simultaneously  with the  first
         borrowing  hereunder in  accordance  with  applicable  law and on terms
         reasonably satisfactory to the Lenders. The Agent shall have received a
         certificate of a Responsible Officer of the Company certifying that the
         aggregate  amount of fees and  expenses  (other than fees and  expenses
         which  reduce  amounts  which are  otherwise  payable to the Members or
         partners of the Company (or its  predecessor)  in  connection  with the
         Recapitalization)  paid and payable by the Company and its Subsidiaries
         in connection with the  Recapitalization  and the financing thereof are
         not expected to exceed $15,000,000.

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<PAGE>

                     (m)  Other   Indebtedness.   After  giving  effect  to  the
         Recapitalization,  the  Company  and  its  Subsidiaries  shall  have no
         outstanding  Indebtedness  other  than (i) the  Loans  and  (ii)  other
         Indebtedness permitted pursuant to subsection 14.1.

                     (n) Environmental  Review.  The Lenders shall have received
         (and shall be  entitled to rely upon) an  environmental  review in form
         and substance reasonably  satisfactory to the Agent performed by Strata
         Environmental.

                     (o)  Capitalization.  The Company  shall have (i) received,
         concurrently  with the making of the initial Loans on the Closing Date,
         not less than  $129,000,000 in gross cash proceeds from the issuance of
         the Senior  Subordinated  Indebtedness and (ii) equity of not less than
         $69,000,000 (including, without limitation,  $35,000,000 in equity from
         existing  shareholders and $850,000 in equity from senior management of
         the Company).

                     (p)  Consulting Report.  The Lenders shall have received a
         copy of a consulting report prepared for Vestar by Corporate Decisions,
         Inc. and the contents of such report shall be in form and substance
         satisfactory to the Lenders.

                     (q)  Borrowing  Base Audits.  The Agent shall have received
         the results of an audit of the inventory and accounts receivable of the
         Company and its  Subsidiaries  and of the UK Borrower,  and such report
         shall be in form and substance satisfactory to the Agent.

                     (r) No Consents. All requisite Governmental Authorities and
         third parties  (other than any  landlords  with respect to retail store
         properties) shall have approved or consented to the Recapitalization to
         the extent required,  all applicable  appeal periods shall have expired
         and  there  shall be no  governmental  or  judicial  action,  actual or
         threatened,   that  has  or  would  have  a  reasonable  likelihood  of
         restraining,  preventing  or  imposing  burdensome  conditions  on  the
         transactions contemplated hereby, including the Recapitalization.

                     (s)  Borrowing  Base  Certificates.  The Agent  shall  have
         received a Domestic  Borrowing Base Certificate and a UK Borrowing Base
         Certificate.  Each such Borrowing Base  Certificate  shall (i) be dated
         the Closing Date, (ii) reflect the relevant  Borrowing Base as of April
         30, 1996 and (iii) be signed by a Responsible Officer of the Company.

                        SECTION 13. AFFIRMATIVE COVENANTS

                  The Company  covenants and agrees with each Lender  (including
the  Issuing  Bank) that so long as this  Agreement  shall  remain in effect and
until the Commitments  have been terminated and the principal of and interest on
each Loan,  all fees and all other  expenses or amounts  payable  under any Loan
Document  shall  have been  paid in full and all  Letters  of  Credit  have been

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canceled or have expired and all amounts drawn  thereunder  have been reimbursed
in full, unless the Required Lenders shall otherwise consent in writing:

                  13.1  Existence;  Businesses and  Properties.  (a) The Company
will,  and will  cause each of the  Subsidiaries  to, do or cause to be done all
things necessary to preserve,  renew and keep in full force and effect its legal
existence, except as otherwise expressly permitted under subsection 14.6.

     (b) The Company  will,  and will cause each of the  Subsidiaries  to, do or
cause to be done all things  necessary to obtain,  preserve,  renew,  extend and
keep in full  force  and  effect  the  rights,  licenses,  permits,  franchises,
authorizations,  patents, copyrights, trademarks and trade names material to the
conduct of its business; maintain and operate such business in substantially the
manner in which it is currently  conducted and operated;  comply in all material
respects with all material  applicable  laws,  rules,  regulations  and statutes
(including any zoning, building,  Environmental Law, ordinance, code or approval
or any building  permits or any  restrictions of record or agreements  affecting
the Mortgaged  Property) and decrees and orders of any  Governmental  Authority,
whether  now in effect or  hereafter  enacted;  and at all  times  maintain  and
preserve  all  property  material to the conduct of such  business and keep such
property in good repair, working order and condition and from time to time make,
or cause to be made,  all  needful  and  proper  repairs,  renewals,  additions,
improvements  and  replacements  thereto  necessary  in order that the  business
carried on in connection therewith may be properly conducted at all times.

                  13.2  Insurance.  (a) The Company will, and will cause each of
the Subsidiaries  to, keep its insurable  properties  adequately  insured at all
times  by  financially  sound  and  reputable  insurers;   maintain  such  other
insurance, to such extent and against such risks, including fire and other risks
insured  against  by  extended  coverage,  as is  customary  with  companies  of
established  repute in the same  general  area  engaged  in the same or  similar
businesses,  including  public liability  insurance  against claims for personal
injury or death or property  damage  occurring  upon, in, about or in connection
with the use of any properties owned, occupied or controlled by it or the use of
any products sold by it; and maintain such other insurance as may be required by
law.

     (b) The Company will, and will cause each of its Domestic  Subsidiaries to,
cause all such  policies  to be  endorsed  or  otherwise  amended  to  include a
"standard"  or "New  York"  lender's  loss  payable  endorsement,  in  form  and
substance  satisfactory to the Agent, which endorsement shall provide that, from
and after the Closing Date,  (i) the  insurance  carrier shall give the Agent at
least 30 days' (or, in the case of  non-payment  of  premiums,  10 days')  prior
notice of termination  of such policies and (ii) if the insurance  carrier shall
have  received  written  notice from the Agent of the  occurrence of an Event of
Default,  the insurance carrier shall pay all proceeds  otherwise payable to the
Company or any of its Domestic  Subsidiaries under such policies directly to the
Agent.

     (c) If at any time  the  area in which  the  Premises  (as  defined  in the
Company  Mortgage)  are located is designated a "flood hazard area" in any Flood
Insurance Rate Map published by the Federal  Emergency  Management  Agency,  the

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Company will, and will cause each of the Subsidiaries to, obtain flood insurance
in such total amount as the Agent may from time to time reasonably require,  and
otherwise comply with the National Flood Insurance  Program as set forth in said
Flood Disaster Protection Act of 1973, as it may be amended from time to time.

                  13.3  Obligations and Taxes.  The Company will, and will cause
each of the Subsidiaries to, pay its Indebtedness and other material obligations
promptly and in accordance with their terms and pay and discharge  promptly when
due all taxes, assessments and governmental charges or levies imposed upon it or
upon its income or profits or in respect of its property,  before the same shall
become  delinquent  or in  default,  as well as all  lawful  claims  for  labor,
materials and supplies or otherwise  that, if unpaid,  might give rise to a Lien
upon such properties or any part thereof;  provided,  however, that such payment
and discharge  shall not be required  with respect to any such tax,  assessment,
charge,  levy or  claim  so long as the  validity  or  amount  thereof  shall be
contested in good faith by  appropriate  proceedings  and the Company shall have
set aside on its books adequate reserves with respect thereto in accordance with
GAAP  and  such  contest  operates  to  suspend   collection  of  the  contested
obligation, tax, assessment or charge and enforcement of a Lien and, in the case
of a Mortgaged Property, there is no risk of forfeiture of such property.

                  13.4  Financial Statements, Reports, etc.  The Company will
furnish to the Agent and each Lender:

                     (a) within 105 days after the end of each fiscal year,  its
         consolidated and consolidating balance sheets and related statements of
         operations,  stockholders'  equity and cash flows for such  fiscal year
         and  the  results  of  its   operations   and  the  operations  of  its
         Subsidiaries   during  such  year,   setting  forth  in  each  case  in
         comparative  form the figures for the  previous  year,  audited (in the
         case of the consolidated financial statements) by Coopers & Lybrand LLP
         or other independent public accountants of recognized national standing
         reasonably  acceptable to the Required  Lenders and  accompanied  by an
         opinion  of such  accountants  (which  shall  not be  qualified  in any
         material  respect)  to the  effect  that  such  consolidated  financial
         statements  fairly  present  the  financial  condition  and  results of
         operations of the Company on a  consolidated  basis in accordance  with
         GAAP consistently applied;

                     (b)  within  45 days (or,  in the case of the first  fiscal
         quarter to end  following  the Closing  Date, 60 days) after the end of
         each of the first  three  fiscal  quarters  of each  fiscal  year,  its
         unaudited  consolidated  and  consolidating  balance sheets and related
         statements of operations,  stockholders'  equity and cash flows showing
         the   financial   condition   of  the  Company  and  its   consolidated
         Subsidiaries  as of the close of such fiscal quarter and the results of
         its  operations  and the  operations of such  Subsidiaries  during such
         fiscal quarter and the then elapsed portion of the fiscal year, setting
         forth  in  each  case  in   comparative   form  the   figures  for  the
         corresponding  fiscal  period of the previous  year (or, in the case of

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         the  consolidated  balance sheet,  the last day of the relevant  fiscal
         period  during such prior year) and the figures for such periods in the
         Company's budget previously  furnished to the Lenders, all certified by
         one of its  Responsible  Officers  (in his or her  capacity as such) as
         fairly presenting the financial  condition and results of operations of
         the Company on a  consolidated  and  consolidating  basis in accordance
         with GAAP, subject to normal year-end audit adjustments and the absence
         of notes;

                     (c) within 105 days after the end of each fiscal year,  the
         consolidated and consolidating balance sheets and related statements of
         operations,  stockholders' equity and cash flows of the UK Borrower for
         such fiscal year and the results of its  operations  and the operations
         of its  Subsidiaries  during such year,  setting  forth in each case in
         comparative form the figures for the previous year;

                     (d)  within  45 days (or,  in the case of the first  fiscal
         quarter to end  following  the Closing  Date, 60 days) after the end of
         each of the first  three  fiscal  quarters  of each  fiscal  year,  the
         unaudited  consolidated  and  consolidating  balance sheets and related
         statements of operations, stockholders' equity and cash flows of the UK
         Borrower  showing the  financial  condition  of the UK Borrower and its
         consolidated  Subsidiaries  as of the close of such fiscal  quarter and
         the results of its operations  and the operations of such  Subsidiaries
         during such fiscal  quarter and the then elapsed  portion of the fiscal
         year,  setting forth in each case in  comparative  form the figures for
         the  corresponding  fiscal period of the previous year (or, in the case
         of the consolidated  balance sheet, the last day of the relevant fiscal
         period during such prior year), all certified by one of its Responsible
         Officers  (in his or her  capacity  as such) as fairly  presenting  the
         financial  condition  and results of operations of the UK Borrower on a
         consolidated  and  consolidating  basis in  accordance  with  generally
         accepted  accounting  principles  as in effect from time to time in the
         United Kingdom,  subject to normal  year-end audit  adjustments and the
         absence of notes;

                     (e)  concurrently  with any delivery of any such  financial
         statements contemplated by clause (a) through (d) hereof, a certificate
         of a  Responsible  Officer  of  the  Company  or the  UK  Borrower,  as
         appropriate  (in his or her capacity as such) (and,  in the case of any
         financial  statements  being  delivered  under  paragraph (a) above,  a
         certificate of the opining  accounting firm,  which  certificate may be
         limited to  accounting  matters and disclaim  responsibility  for legal
         interpretations), (i) certifying that it has no actual knowledge of the
         occurrence  of any Event of Default or Default or, if it has  knowledge
         of any Event of Default or  Default,  specifying  the nature and extent
         thereof and any  corrective  action  taken or proposed to be taken with
         respect  thereto and (ii)  setting  forth  computations  in  reasonable
         detail  satisfactory to the Agent demonstrating (A) compliance with the
         covenants  contained in  subsections  14.12 through 14.16 and 14.23 and
         (B) the Leverage Ratio then in effect for purposes of  determining  the
         Applicable Margin;

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                     (f)  promptly  after the same  become  publicly  available,
         copies of all periodic and other  reports,  proxy  statements and other
         materials  filed by the Company or any  Subsidiary  with the Securities
         and Exchange  Commission,  or any Governmental  Authority succeeding to
         any of or all the  functions of said  Commission,  or with any national
         securities exchange, or distributed to its members or shareholders,  as
         the case may be;

                     (g) promptly following the preparation  thereof,  copies of
         each  management   letter  prepared  by  the  Company's   auditors  for
         distribution to the Management  Committee of the Company (together with
         any response thereto prepared by the Company);

                     (h) as soon as available, and in any event no later than 95
         days after the end of each fiscal  year,  the budget of the Company for
         the then-current fiscal year (together with the assumptions utilized in
         establishing  such budget),  with such budget and  assumptions to be in
         form and substance  reasonably  satisfactory to the Agent and certified
         by a  Responsible  Officer of the  Company  (in his or her  capacity as
         such) as representing the Company's most reasonable good faith estimate
         of its budget for such fiscal year;

                     (i) upon the  earlier of (i) 105 days after the end of each
         fiscal  year of the  Company  (commencing  with the fiscal  year ending
         December 31, 1997) and (ii) the date on which the financial  statements
         with respect to such period are  delivered  pursuant to  paragraph  (a)
         above,  a certificate of a Responsible  Officer of the Company  setting
         forth, in detail  satisfactory to the Agent, the calculation and amount
         of Excess Cash Flow, if any, for such period;

                     (j) on each  "delivery  date" for the  relevant  "reporting
         date,"  deliver  to the  Agent at the office of the Agent specified in
         subsection  18.2, each of (i) a  Domestic Borrowing Base Certificate,
         setting forth the Domestic  Borrowing Base as  of  the  relevant
         reporting   date,  (ii)  a  UK  Borrowing Base Certificate,  setting
         forth the UK  Borrowing  Base as of the relevant reporting date, (iii)
         any applicable supporting documentation described in Schedule  XIV with
         respect to such  Domestic  and UK Borrowing  Base Certificates  and
         (iv)  a  certificate  listing  each  Lender  Hedging Agreement (as
         defined in the Company Pledge  Agreement) then in effect
         and the notional amount,  currency and tenor with respect thereto, duly
         completed and signed by a Responsible Officer of the Company (in his or
         her capacity as such); for purposes of this clause (j), the term:

                           (x) "reporting  date" shall mean each of (i) the last
                     day of each calendar month,  (ii) the fifteenth day of each
                     of each calendar  month during the period from September of
                     1998 through January 1999,  (iii) the fifteenth day of each
                     calendar  month  during  the  period  from  September  1999
                     through January 2000 and (iv) any other time when the Agent
                     notifies the Company that it  reasonably  believes that the

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                     then-existing  Domestic Borrowing Base or UK Borrowing Base
                     (as the case may be) is materially inaccurate; and

                           (y) "delivery date" shall mean fifteen days after the
                     corresponding  reporting  date (or,  to the extent that the
                     relevant  Borrowing  Base  Certificate  is being  delivered
                     pursuant to clause (x)(iv)  above,  ten days after the date
                     upon which the notice described therein is delivered);

         provided   that,   for  purposes  of  completing   any  Borrowing  Base
         Certificate delivered pursuant to clause (x)(ii) or (x)(iii) above, the
         relevant  Borrowing  Base shall be calculated  based upon a reasonable,
         good faith estimate by the Company of its Eligible  Domestic Inventory,
         its Eligible  Domestic  Accounts and the Remington Germany accounts
         receivable and inventory or the UK Borrower of its Eligible UK
         Inventory, Eligible UK Accounts and the Remington Germany accounts
         receivable and inventory (as the case may be) on the relevant
         reporting date;

                     (k)  promptly,  such  information  with respect to accounts
         payable,  inventory purchases,  accounts receivable and similar matters
         with  respect  to  the  Company  and  its  Subsidiaries  as  the  Agent
         reasonably may request at any time and from time to time; and

                     (l)  promptly,  from time to time,  such other  information
         regarding the operations,  business affairs and financial  condition of
         the Company and its  Subsidiaries,  or compliance with the terms of any
         Loan Document, as any Lender may reasonably request.

                     (m) as soon as  available,  and in any event not later than
         30 days after the end of each month  occurring  during each fiscal year
         (other  than the third,  sixth,  ninth and  twelfth  such  month),  the
         unaudited   consolidated   balance   sheets  of  the  Company  and  its
         consolidated  Subsidiaries  as at the end of such month and the related
         unaudited consolidated  statements of income and of cash flows for such
         month and the portion of the fiscal year through the end of such month,
         setting  forth in each case in  comparative  form the  figures  for the
         previous year,  accompanied  by a certificate of a Responsible  Officer
         certifying that (i) such financial  statements are fairly stated in all
         material  respects  (subject to normal year-end audit  adjustments) and
         (ii) such Responsible Officer has no actual knowledge of the occurrence
         of any Event of  Default or Default  or, if s/he has  knowledge  of any
         Event of Default or Default,  specifying  the nature and extent thereof
         and any  corrective  action  taken or proposed to be taken with respect
         thereto; and

                     (n) as soon as  available,  and in any event not later than
         30 days after the end of each month  occurring  during each fiscal year
         (other  than the third,  sixth,  ninth and  twelfth  such  month),  the
         unaudited  consolidated  balance  sheets  of the UK  Borrower  and  its
         consolidated  Subsidiaries  as at the end of such month and the related
         unaudited consolidated  statements of income and of cash flows for such
         month and the portion of the fiscal year through the end of such month,

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         setting  forth in each case in  comparative  form the  figures  for the
         previous year,  accompanied  by a certificate of a Responsible  Officer
         certifying that (i) such financial  statements are fairly stated in all
         material  respects  (subject to normal year-end audit  adjustments) and
         (ii) such Responsible Officer has no actual knowledge of the occurrence
         of any Event of  Default or Default  or, if s/he has  knowledge  of any
         Event of Default or Default,  specifying  the nature and extent thereof
         and any  corrective  action  taken or proposed to be taken with respect
         thereto.

                  13.5 Litigation and Other Notices.  The Company will, and will
cause each of the  Subsidiaries  to, furnish to the Agent and each Lender prompt
written notice of the occurrence of the following:

                     (a) any Event of Default or Default,  specifying the nature
         and extent  thereof and the  corrective  action (if any) proposed to be
         taken with respect thereto;

                     (b) the filing or commencement of, or any written threat or
         written  notice of  intention  of any Person to file or  commence,  any
         action, suit or proceeding, whether at law or in equity or by or before
         any  Governmental  Authority,  against the Company or any Subsidiary or
         Affiliate  thereof that, if adversely  determined,  could reasonably be
         expected to result in a Material Adverse Effect; and

                     (c)  any  development   that  has  resulted  in,  or  could
         reasonably be expected to result in, a Material Adverse Effect.

                  13.6  ERISA.  The  Company  will,  and will  cause each of the
Subsidiaries to, (a) comply with the applicable provisions of ERISA and the Code
and the regulations and published interpretations  thereunder,  except where the
failure to comply  therewith could not reasonably be expected to have a Material
Adverse Effect, and (b) furnish to the Agent (i) as soon as possible, and in any
event within 30 days after any  Responsible  Officer of the Company either knows
or has a reasonable basis to know that any Reportable  Event has occurred,  that
alone or together with any other  Reportable  Event could reasonably be expected
to result in liability, of the Company, any Subsidiary or any ERISA Affiliate to
the PBGC,  a statement  of a  Responsible  Officer of the Company (in his or her
capacity as such)  setting  forth  details as to such  Reportable  Event and the
action  proposed to be taken with respect  thereto,  together with a copy of the
notice,  if any, of such Reportable Event given to the PBGC, (ii) promptly after
receipt thereof,  a copy of any notice the Company,  any Subsidiary or any ERISA
Affiliate  receives  from  the PBGC  relating  to the  intention  of the PBGC to
terminate  any Plan or Plans or to appoint a trustee to  administer  any Plan or
Plans, (iii) within 20 Business Days after the due date for filing with the PBGC
pursuant  to  Section  412(n) of the Code a notice of failure to make a required
installment  or  other  payment  with  respect  to  a  Plan,  a  statement  of a
Responsible  Officer of the Company setting forth details as to such failure and
the action  proposed to be taken with respect  thereto,  together with a copy of
such notice given to the PBGC and (iv)  promptly and in any event within 30 days
after receipt thereof by the Company, any Subsidiary or any ERISA Affiliate from

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the  sponsor of a  Multiemployer  Plan,  a copy of each  notice  received by the
Company,  any Subsidiary or any ERISA Affiliate concerning (A) the imposition of
Withdrawal  Liability or (B) a determination that a Multiemployer Plan is, or is
expected to be, terminated or in reorganization, in each case within the meaning
of Title IV of ERISA;  provided,  however,  that no such notice will be required
under this  subsection  13.6 unless the event,  when  aggregated  with all other
events  occurring at the same time,  could be  reasonably  expected to result in
liability in an amount that would exceed $5,000,000.

                  13.7   Maintaining   Records;   Access   to   Properties   and
Inspections.  (a) The Company will, and will cause each of the  Subsidiaries to,
maintain  all  financial   records  in  accordance  with  GAAP  and  permit  any
representatives  designated  by any Lender to visit and  inspect  the  financial
records and the properties of the Company or any Subsidiary at reasonable  times
and upon  reasonable  notice and as often as  reasonably  requested  and to make
extracts   from  and  copies  of  such   financial   records,   and  permit  any
representatives  designated  by any Lender to  discuss  the  affairs,  finances,
properties  and  condition  of the Company or any  Subsidiary  with the officers
thereof and independent accountants therefor.

                  (b) The Company will, and will cause each of its  Subsidiaries
to, permit the Agent or any third party designated by the Agent to conduct (upon
notice to a  Responsible  Officer of the Company and at the sole  expense of the
Company) an audit and/or collateral  examination of the accounts  receivable and
inventories of the Company and its Subsidiaries,  and of the Domestic  Borrowing
Base and UK Borrowing  Base, at such times as the Agent or the Required  Lenders
reasonably shall require.

                  13.8 Use of Proceeds. The Company will, and will cause each of
the  Subsidiaries  to, use the proceeds of the Loans and request the issuance of
Letters of Credit only for the purposes set forth in subsections  2.5, 3.5,3A.5,
4.1,5.3, 6.5, 7.5, 8.3 or 9.5 (as appropriate).

                  13.9 Compliance with  Environmental  Laws. Except as could not
reasonably be expected to result in a Material Adverse Effect, the Company will,
and will cause each of the Subsidiaries to, comply,  and use its reasonable best
efforts to cause all lessees  and other  Persons  occupying  its  Properties  to
comply, in all material  respects with all Environmental  Laws and Environmental
Permits  applicable  to its  operations  and  Properties;  obtain  and renew all
material Environmental Permits necessary for its operations and Properties;  and
conduct any Remedial Action required by any Governmental Authority in accordance
with Environmental Laws; provided,  however, that neither the Company nor any of
the  Subsidiaries  shall be required to  undertake  any  Remedial  Action to the
extent  that its  obligation  to do so is being  contested  in good faith and by
proper proceedings and appropriate reserves are being maintained with respect to
such circumstances.

                  13.10  Preparation  of  Environmental  Reports.  If a  Default
caused by reason of a breach of subsection 11.16 or 13.9 shall have occurred and
be continuing,  the Company will, and will cause each of the Subsidiaries to, at
the request of the Required  Lenders  through the Agent,  provide to the Lenders

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within  45  days  after  such  request,  at  the  expense  of  the  Company,  an
environmental  site assessment  report for the Properties (which are the subject
of  such  default)  prepared  by an  environmental  consulting  firm  reasonably
acceptable  to the Agent,  indicating  the  presence  or  absence  of  Hazardous
Materials  and the  estimated  cost of any  compliance  or  Remedial  Action  in
connection with such Properties.

                  13.11 Further  Assurances.  The Company  will,  and will cause
each of the  Subsidiaries to, execute any and all further  documents,  financing
statements,  agreements and instruments,  and take all further action (including
filing Uniform  Commercial  Code and other financing  statements,  mortgages and
deeds of trust) that may be required under applicable law, or which the Required
Lenders  or the  Agent  may  reasonably  request,  in  order to  effectuate  the
transactions contemplated by the Loan Documents and in order to grant, preserve,
protect and perfect the  validity and first  priority of the security  interests
created or intended to be created by the Security Documents.

                  13.12 Additional Guarantees.  The Company will, and will cause
each of the  Domestic  Subsidiaries  to,  execute  and  deliver  to the  Agent a
Subsidiaries  Guarantee with respect to each Domestic  Subsidiary of the Company
which is acquired, created or otherwise becomes such a Domestic Subsidiary after
the date hereof.  Each such Subsidiaries  Guarantee shall be accompanied by such
resolutions,  incumbency  certificates  and  legal  opinions  as are  reasonably
requested by the Agent and are in form and substance reasonably  satisfactory to
the Agent.

                  13.13 Additional Stock Pledges. (a) The Company will, and will
cause each of its  Subsidiaries  to,  pledge to the Agent 100% of the issued and
outstanding  Capital  Stock or other  equity  interests  (other than  directors'
qualifying  shares) of each  Domestic  Subsidiary  of the Company  which has not
previously been pledged  hereunder.  Such pledge shall be granted  pursuant to a
Pledge  Agreement  substantially  in the form of Exhibit C-1 or D-2, as the case
may be.

                  (b) The  Company  will,  and will cause  each of its  Domestic
Subsidiaries to, pledge (or grant analogous security  interests) to the Agent in
accordance  with the laws of the  jurisdiction  of  organization  of the  issuer
thereof 65%  (rounded  downward  to  eliminate  any  fraction of a share) of the
issued and outstanding  shares of each class of capital stock or other ownership
interests  entitled  to  vote  (within  the  meaning  of  Treasury   Regulations
ss.1.956-2(c)(2)) ("Voting Stock") and 100% of the issued and outstanding shares
of each class of capital stock or other ownership interests not entitled to vote
(within the meaning of such Regulation)  ("Non-Voting Stock") of each first-tier
Foreign  Subsidiary  from time to time of the  Company  which (in each  case) is
owned of record by the  Company or any  Domestic  Subsidiary  of the Company and
which has not  previously  been  pledged  hereunder.  Each such pledge  shall be
granted  pursuant to a Pledge  Agreement  in such form as (x) may be  reasonably
required in order to perfect a security  interest in the Pledged Stock delivered
thereto  as  defined  therein  under the laws of the  jurisdiction  in which the
issuer  of such  Pledged  Stock is  organized  and (y) is in form and  substance
reasonably satisfactory to the Agent.

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                  (c) The  Company  will,  and will cause  each of the  Domestic
Subsidiaries  to,  execute and  deliver  each  Pledge  Agreement  required to be
executed and delivered  pursuant to this subsection 13.13 promptly following the
organization, acquisition or identification of any such Subsidiary or first-tier
Foreign Subsidiary. Each such Pledge Agreement shall be accompanied by (i) share
certificates  evidencing  the Pledged Stock  thereunder (to the extent that such
Pledged  Stock is  certificated)  as defined  therein,  together with an undated
stock  power  for each  such  share  certificate  (duly  executed  in blank  and
delivered  by a duly  authorized  officer of the  Pledgor of the  Pledged  Stock
represented  by such  certificate),  (ii) in the case of the  pledge of  capital
stock or other ownership  interests of any Foreign  Subsidiary,  evidence of the
taking of all such other  actions as may be  necessary  or  appropriate  for the
perfection  and  first  priority  of such  pledge  and  (iii) in the case of any
Subsidiary, such resolutions,  incumbency certificates and legal opinions as are
reasonably  requested by the Agent and shall  otherwise be in form and substance
reasonably satisfactory to the Agent.

                  (d) [RESERVED].

                  (e) In the  event  that  there  shall be a change  in law that
substantially  eliminates the adverse tax  consequences to the Company or any of
its Subsidiaries  that would have resulted on the date hereof from the pledge of
more than  66-2/3% of the Voting  Stock of any Foreign  Subsidiary,  the Company
will,  and will cause each of its  Subsidiaries  to, (i) pledge such  additional
amount of shares of such Voting Stock (with  respect to each Foreign  Subsidiary
the Voting Stock of which then is pledged  hereunder)  and (ii)  notwithstanding
the  provisions of  subsection  13.13(b) and (c),  pledge the maximum  amount of
shares of such Voting Stock (with respect to each Foreign  Subsidiary the Voting
Stock of which is  pledged  thereafter),  in each case  which can be so  pledged
without the incurrence of adverse tax consequences and take or cause to be taken
such further  action as the Agent may  reasonably  request  (including,  without
limitation,  the  delivery of legal  opinions)  in order to perfect its security
interest in such stock; provided that the foregoing requirement shall be limited
to the extent that such pledge (x) is not permitted  under  applicable  law, (y)
would  violate  any  agreements  then in effect  which  relate  to  Indebtedness
permitted hereunder or (z) would reasonably be expected to have material adverse
consequences to the Company or its Subsidiaries.

                  13.14  Additional  Security  Agreements.  (a) The Company will
cause each of its  Domestic  Subsidiaries  which has not  previously  done so to
execute and deliver to the Agent a  Subsidiary  Security  Agreement  and to take
such other action as  reasonably  shall be necessary or as the Agent  reasonably
shall  request to grant to the Agent a first  priority  perfected (to the extent
required  in  such  Security  Agreement)  security  interest  in all  Collateral
described in such Security Agreement (subject to any Liens permitted to encumber
such Collateral pursuant to subsection 14.2). Each such Security Agreement shall
be accompanied by such evidence of the taking of all actions as may be necessary
or  appropriate  for the  perfection  (to the extent  required in such  Security
Agreement)  and first  priority of such security  interest  (including,  without
limitation,  the  filing of any  necessary  Uniform  Commercial  Code  financing
statements) and such resolutions,  incumbency certificates and legal opinions as

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are  reasonably  requested  by the  Agent,  all of  which  shall  be in form and
substance reasonably satisfactory to the Agent.

                  (b) [RESERVED].

                  13.15  Rate  Protection  Agreements.  If, at any time and from
time to time, at least 50% of the aggregate principal amount of the Indebtedness
for borrowed money of the Company and its Subsidiaries does not bear interest at
a fixed rate and the Agent or the Required Lenders so request,  the Company will
(within 90 days thereafter) enter into (and thereafter  maintain in effect for a
period of at least three years  following such date or, if shorter,  through the
Termination  Date)  Rate  Protection  Agreements  providing  for  interest  rate
protection on terms reasonably  acceptable to the Agent, to the extent necessary
to cause at least 50% of such Indebtedness to bear interest at a fixed rate.

                  13.16  Material  Contracts.  The Company will,  and will cause
each of the  Subsidiaries  to,  maintain  in full  force and  effect  (including
exercising any available renewal option), and without amendment or modification,
all its material  contracts  unless the failure so to maintain such contracts or
to exercise any renewal  option (or the  amendments or  modifications  thereto),
individually  or in the  aggregate,  could not  reasonably be expected to have a
Material Adverse Effect.

                  13.17  Surveys and Zoning.  The Company  will,  and will cause
each of the Subsidiaries to, within 60 days after the Closing Date,  furnish the
Agent  with  (a) an  as-built  survey  of the  Mortgaged  Property,  in form and
substance  satisfactory to the Agent and (b)  endorsements to the title policies
required  by  subsection   12.2(j)  providing  access,   survey,   comprehensive
(Restrictions, Encroachments and Minerals), tax lot and contiguity coverage.

                  13.18 Cash  Management  System.  Within 30 days  following the
Closing Date, the Company will, and will cause each of its Domestic Subsidiaries
to,  cause  substantially  all of its  accounts  receivable  to be  paid  by the
relevant  account debtor directly into a lock-box which is subject to a Lock-Box
Agreement.

                  13.19 Patents, Trademarks and Copyrights. The Company will and
will cause each of its Domestic Subsidiaries to (a) use best efforts to register
with the  United  States  Patent  and  Trademark  Office  or the  United  States
Copyright  Office,  as the case may be,  all of its or their  right,  title  and
interest in each material Patent,  Trademark and Copyright (as each such term is
or may be defined in the Security  Agreements)  used in its or their business in
the United States which is so registerable under applicable law, (b) report each
such filing and registration to the Agent within fifteen Business Days after the
last day of the fiscal quarter in which such filing occurs and (c) promptly upon
request by the Agent,  execute and deliver any and all agreements,  instruments,
documents,  and papers (each of which shall be in form and substance  reasonably
satisfactory  to the Agent) as may be necessary  or as the Agent may  reasonably
request to grant (to the extent  possible) to the Agent,  for the benefit of the
Lenders  (other than the Unsecured  Supplemental  Lenders),  a perfected,  first

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priority security  interest therein and in any goodwill and general  intangibles
relating thereto or represented thereby.

                  13.20  Covenants  of Other  Borrowers13.20  Covenants of Other
Borrowers.20 Covenants of Other Borrowers.  Each Borrower other than the Company
covenants and agrees with each Lender (including the Issuing Bank) that it shall
abide by the covenants of the Company set forth in this Section 13 to the extent
the Company  has  covenanted  to cause it to take or to refrain  from taking any
action.

                         SECTION 14. NEGATIVE COVENANTS

                  The Company  covenants and agrees with each Lender  (including
the Issuing  Bank) that,  so long as this  Agreement  shall remain in effect and
until the Commitments  have been terminated and the principal of and interest on
each Loan,  all fees and all other  expenses or amounts  payable  under any Loan
Document  have been paid in full and all Letters of Credit have been canceled or
have expired and all amounts  drawn  thereunder  have been  reimbursed  in full,
unless the Required Lenders shall otherwise consent in writing, the Company will
not, and will not cause or permit any of the Subsidiaries to:

                  14.1  Indebtedness.  Incur, create, assume or permit to exist
         any Indebtedness, except:

                     (a) Indebtedness existing on the Closing Date and set forth
         on Schedule III (and any  extensions,  renewals or replacements of such
         Indebtedness  so long as the principal  amount of such  Indebtedness is
         not increased);

                     (b)  Indebtedness created under any Loan Document;

                     (c)  Senior Subordinated Indebtedness issued on or prior to
         the Closing Date not in excess of $130,000,000 in aggregate principal
         amount;

                     (d) Indebtedness  consisting of purchase money Indebtedness
         incurred in the ordinary  course of business  after the Closing Date to
         finance  Capital   Expenditures   permitted  under  subsection   14.13;
         provided,   however,   that  (i)  the  aggregate  amount  of  Specified
         Obligation  Usage  (after  giving  effect  to the  incurrence  of  such
         Indebtedness)  does not exceed  $10,000,000 at any one time outstanding
         and (ii) such  Indebtedness  is incurred by no later than 90 days after
         the making of the Capital Expenditures financed thereby;

                     (e)  Indebtedness in respect of Sale and Leaseback
         Transactions permitted under subsection 14.4;

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                     (f)  Indebtedness in respect of Capital Lease Obligations
         permitted under subsection 14.12;

                     (g)  in the case of the Company, Indebtedness in respect of
         Rate Protection Agreements;

                     (h) Indebtedness (other than (i) inter-company  payables in
         the  ordinary  course of business and (ii)  inter-company  loans of the
         proceeds  of  Excluded  Equity  Investments)  of  the  Company  to  any
         Subsidiary   and  of  any  Subsidiary  to  the  Company  or  any  other
         Subsidiary; provided that, after giving effect to the incurrence of any
         such Indebtedness, the amount equal to the sum of:

                     (x) the aggregate principal amount of all such Indebtedness
                  owing by Foreign  Subsidiaries to the Company and its Domestic
                  Subsidiaries permitted pursuant to this clause (h); and

                     (y) the  aggregate  principal  amount  of  Indebtedness  of
                  Foreign  Subsidiaries  in respect of which the  Company or any
                  Domestic  Subsidiary has incurred Guarantee  Obligations which
                  are permitted pursuant to subsection 14.3(c); and

                     (z) the aggregate  amount of all investments in and capital
                  contributions  to all Foreign  Subsidiaries  since the Closing
                  Date  permitted  pursuant to  subsection  14.5(e)  (net of the
                  aggregate  amount of any dividends and  distributions  paid by
                  such  Foreign  Subsidiaries  to the Company  and its  Domestic
                  Subsidiaries);

         shall  not,  in the  aggregate,  exceed  the  amount  equal to (i) with
         respect to the UK Borrower,  $7,500,000 at any one time outstanding and
         (ii) with respect to all other Foreign  Subsidiaries  in the aggregate,
         the amount at any one time  outstanding  equal to the  Subsidiary  Debt
         Basket Amount then in effect;

                     (i) short-term  Indebtedness of Foreign Subsidiaries of the
         Company  (other than the UK  Borrower)  for working  capital  purposes;
         provided  that,  after  giving  effect  to the  incurrence  of any such
         Indebtedness,  the aggregate  principal amount of all such Indebtedness
         of all  Foreign  Subsidiaries  (other than the UK  Borrower)  shall not
         exceed $22,500,000 at any one time outstanding;

                     (j)  [omitted];

                     (k)  Indebtedness  of the  Company to former  employees  on
         account of the obligation of the Company to pay for Capital Stock which
         was  re-purchased by the Company upon termination of employment of such
         employees; provided that the aggregate principal amount of Indebtedness
         outstanding under this paragraph (k) shall not exceed $1,000,000 at any
         one time outstanding; and

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                     (l)  in  the   case  of  the   Company,   other   unsecured
         Indebtedness  in a  principal  amount  at any time  outstanding  not in
         excess of $5,000,000.

                  14.2 Liens. Create,  incur, assume or permit to exist any Lien
on any property or assets  (including  stock or other  securities of any Person,
including any Subsidiary) now owned or hereafter acquired by it or on any income
or revenues or rights in respect of any thereof, except:

                     (a) Liens on  property  or assets  of the  Company  and its
         Subsidiaries  existing on the Closing Date and set forth on Schedule IV
         or on Schedule B to any lender's title  insurance  policy  delivered to
         the Agent in accordance  with  subsection  12.2(j) prior to the Closing
         Date  (and  any  extension,  renewal  or  replacement  of such  Liens);
         provided,  however, that such Liens shall secure only those obligations
         that they secure on the Closing Date;

                     (b)  any Lien created under the Loan Documents;

                     (c) any Lien existing on any property or asset prior to the
         acquisition  thereof  (including,  without  limitation,  by  way of the
         acquisition  of the Capital Stock of the entity owning such property or
         asset) by the Company or any Subsidiary;  provided,  however,  that (i)
         such Lien is not created in contemplation of or in connection with such
         acquisition, and (ii) such Lien does not apply to any other property or
         assets of the Company or any  Subsidiary;  provided,  further,  that no
         such Lien shall  encumber any Accounts or Inventory  which are included
         in the  calculation of the Domestic  Borrowing Base or the UK Borrowing
         Base;

                     (d)  Liens for taxes, assessments or governmental charges
         not yet due and payable or that are being contested in compliance with
         subsection 13.3;

                     (e) carriers', warehousemen's,  mechanics',  materialmen's,
         repairmen's,  landlord's  or other like Liens  arising in the  ordinary
         course  of  business  and  securing  obligations  that  are not due and
         payable  or, if a portion  thereof is due and  payable,  that are being
         contested in compliance  with  subsection  13.3;  provided that no such
         Liens on account of amounts  which are due and payable  shall  encumber
         any Accounts or Inventory  which are included in the calculation of the
         Domestic Borrowing Base or the UK Borrowing Base;

                     (f) pledges and  deposits  made in the  ordinary  course of
         business  in  compliance  with  workmen's  compensation,   unemployment
         insurance and other social security laws or regulations;

                     (g) pledges and deposits to secure the performance of bids,
         trade  contracts  (other  than for  Indebtedness),  leases  (other than
         Capital Lease Obligations),  statutory  obligations,  surety and appeal

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         bonds,  performance  bonds  and  other  obligations  of a  like  nature
         incurred in the ordinary course of business;

                     (h) purchase  money  security  interests in real  property,
         improvements  thereto or equipment  hereafter acquired (or, in the case
         of  improvements,  constructed)  by  the  Company  or  any  Subsidiary;
         provided, however, that (i) such security interests secure Indebtedness
         permitted  by  subsection  14.1,  (ii)  such  security   interests  are
         incurred,  and the Indebtedness secured thereby is created, by no later
         than 90 days  after  such  acquisition  (or  construction),  (iii)  the
         Indebtedness  secured  thereby does not exceed 85% of the lesser of the
         cost or the fair market value of such real  property,  improvements  or
         equipment at the time of such  acquisition (or  construction)  and (iv)
         such security interests do not apply to any other property or assets of
         the Company or any Subsidiary;

                     (i)  Liens incurred in connection with Capital Lease
         Obligations permitted under subsection 14.12;

                     (j)  Liens incurred in connection with any Sale and
         Leaseback Transaction permitted under subsection 14.4;

                     (k) Liens on properties and assets of Foreign  Subsidiaries
         (other  than  the UK  Borrower)  which  secure  Indebtedness  permitted
         pursuant to subsection 14.1(i);

                     (l)   zoning   restrictions,    easements,   rights-of-way,
         restrictions  on use of real  property and other  similar  encumbrances
         that do not  materially  impair the  current use or (in the case of the
         Mortgaged Property) the value of the property subject thereto;

                     (m)  Liens arising from precautionary filing of Uniform
         Commercial Code financing statements regarding leases; and

                     (n)  judgement Liens relating to judgements not giving rise
         to an Event of Default.

                  14.3  Limitation on Guarantee Obligations.  Create, incur,
         assume or suffer to exist any Guarantee Obligation except:

                  (a)  Guarantee Obligations incurred after the date hereof in
         an aggregate amount not to exceed $500,000 at any one time outstanding;

                  (b) guarantees  made in the ordinary course of its business by
         the  Company of  obligations  of any of its  Subsidiaries  (other  than
         guarantees of trade payables and Indebtedness for borrowed money) which
         obligations are otherwise permitted under this Agreement;

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                  (c) guarantees  made in the ordinary course of its business by
         the Company of  Indebtedness  and trade  payables of any of its Foreign
         Subsidiaries;  provided that,  after giving effect to the incurrence of
         such guarantee, the amount equal to the sum of:

                     (x) the  aggregate  principal  amount  of the  Indebtedness
                  owing by Foreign  Subsidiaries to the Company and its Domestic
                  Subsidiaries permitted pursuant to subsection 14.1(h); and

                     (y)  the aggregate principal amount of Indebtedness and
                  trade payables guaranteed by the Company permitted
                  pursuant to this clause (c); and

                     (z) the aggregate  amount of all investments in and capital
                  contributions  to all Foreign  Subsidiaries  since the Closing
                  Date  permitted  pursuant to  subsection  14.5(e)  (net of the
                  aggregate  amount of any dividends and  distributions  paid by
                  such  Foreign  Subsidiaries  to the Company  and its  Domestic
                  Subsidiaries);

         shall  not,  in the  aggregate,  exceed  the  amount  equal to (i) with
         respect to the UK Borrower,  $7,500,000 at any one time outstanding and
         (ii) with respect to all other Foreign  Subsidiaries  in the aggregate,
         the amount at any one time  outstanding  equal to the  Subsidiary  Debt
         Basket Amount then in effect; and

                  (d)  the guarantee set forth in subsection 15 and the .
         Subsidiaries Guarantees

                  14.4  Sale  and   Leaseback   Transactions.   Enter  into  any
arrangement,  directly or  indirectly,  with any Person whereby it shall sell or
transfer any property, real or personal, used or useful in its business, whether
now owned or hereafter  acquired,  and thereafter rent or lease such property or
other  property  that it intends to use for  substantially  the same  purpose or
purposes  as the  property  being  sold or  transferred  (a "Sale and  Leaseback
Transaction"),  except  Sale  and  Leaseback  Transactions  entered  into by the
Company to finance the  acquisition  of equipment and other  property so long as
(a) the aggregate  amount of Specified  Obligation Usage (after giving effect to
the  consummation  of such  Sale and  Leaseback  Transaction)  does  not  exceed
$10,000,000  at any  one  time  outstanding  and (b)  such  Sale  and  Leaseback
Transaction  occurs within 360 days after the  acquisition  of such equipment or
other property.

                  14.5  Investments,  Loans  and  Advances.  Purchase,  hold  or
acquire any Capital Stock,  evidences of  Indebtedness  or other  securities of,
make or permit to exist any loans or advances to, or make or permit to exist any
investment  or any  other  interest  in, or incur any  Guarantee  Obligation  in
respect of  Indebtedness  of, or purchase,  lease or  otherwise  acquire (in one
transaction or a series of  transactions)  all or any part of the assets of, any
other Person, except:

                     (a)  investments by the Company and the Subsidiaries
         existing on the Closing Date in the Capital Stock of the Subsidiaries;

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                     (b)  Permitted Investments;

                     (c)  pledges and deposits permitted under subsection
         14.2(g);

                     (d) loans and  advances to  employees of the Company or any
         of its  Subsidiaries  for  (i)  travel,  entertainment  and  relocation
         expenses in the ordinary  course of business in an aggregate  principal
         amount outstanding at any one time not to exceed $2,000,000 or (ii) the
         purpose of financing the purchase by such employees of equity interests
         in the Company in an aggregate  principal amount outstanding at any one
         time  not to  exceed  $1,000,000;  provided  that no  loan  or  advance
         contemplated  by clause (ii) above shall be permitted to be made during
         such  time as any  Default  or Event of  Default  has  occurred  and is
         continuing;

                     (e) loans and advances by the Company to any  Subsidiary to
         the extent  permitted by subsection 14.1 and investments in and capital
         contributions to any Subsidiary;  provided that, after giving effect to
         the  incurrence  of any  such  Indebtedness  and  the  making  of  such
         investments and capital  contributions,  the amount equal to the sum of
         (x) the  aggregate  principal  amount of all such  Indebtedness  of all
         Foreign Subsidiaries incurred which is permitted pursuant to subsection
         14.1(i),  (y) the aggregate  principal  amount of such  Indebtedness of
         Foreign  Subsidiaries  in respect of which the Company or any  Domestic
         Subsidiary  has  incurred  Guarantee  Obligations  which are  permitted
         pursuant  to  subsection  14.3(c) and (y) the  aggregate  amount of all
         investments in and capital  contributions  to all Foreign  Subsidiaries
         since the Closing Date which are permitted  pursuant to this clause (e)
         (net of the aggregate amount of any dividends and distributions paid by
         such Foreign Subsidiaries to the Company and its Domestic Subsidiaries)
         shall not exceed the Subsidiary Debt Basket Amount then in effect;

                     (f) any  purchase,  lease or other  acquisition  (any  such
         acquisition  and  each  other  acquisition  which  is  approved  by the
         Required  Lenders,  a "Permitted  Acquisition") for which the aggregate
         consideration (other than consideration in the form of equity interests
         in the Company and cash consideration which constitutes the proceeds of
         Excluded Equity Investments) payable (with non-cash consideration being
         valued at its fair market  value) by the Company and the  Subsidiaries,
         in the aggregate  with all such  consideration  paid or payable for all
         other  Permitted  Acquisitions  under this clause (f) since the Closing
         Date, does not exceed $30,000,000;  provided,  however, that (i) at the
         time  of  and  immediately   after  giving  effect  to  such  Permitted
         Acquisition  no Default or Event of Default  shall have occurred and be
         continuing  and  (ii) the  Agent  shall  have  received  the  officer's
         certificate referenced in subsection 12.3(d) hereof; and

                     (g)  investments,  loans  and  advances  made to  Remington
         Licensing   Corporation  to  fund  expenses  incurred  in  intellectual
         property  litigation  and  the  maintenance  of  intellectual  property
         rights.

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                  14.6 Mergers,  Consolidations and Sales of Assets.  Merge into
or consolidate  with any other Person,  or permit any other Person to merge into
or consolidate with it, or sell, transfer,  assign, lease, sublease or otherwise
dispose of (in one transaction or in a series of  transactions)  all or any part
of its assets (whether now owned or hereafter  acquired) or any Capital Stock of
any Subsidiary; provided, however, that the foregoing shall not prohibit:

                     (a)  sales of Permitted Investments for cash;

                     (b)  sales,  transfers  and other  dispositions  of used or
         surplus equipment,  vehicles and other assets in the ordinary course of
         business (to the extent that the Borrowers shall have complied with the
         provisions of subsection 10.2);

                     (c)  Sale and Leaseback Transactions permitted by
         subsection 14.4;

                     (d) sales of inventory  in the ordinary  course of business
         (including,  without limitation,  sales of inventory on an arm's-length
         basis to Foreign  Subsidiaries of the Company in the ordinary course of
         business);

                     (e)  sales, transfers and other dispositions by a
         Subsidiary to the Company or to any other Subsidiary that is a
         Guarantor and is a party to all applicable Security Documents;

                     (f) the  sale or  discount  without  recourse  of  accounts
         receivable  arising in the  ordinary  course of business in  connection
         with the  compromise  or collection  thereof in the ordinary  course of
         business;  provided  that,  at the date of such sale or discount,  such
         accounts receivable are not included in the calculation of the Domestic
         Borrowing Base or the UK Borrowing Base then in effect;

                     (g) the merger of any  Subsidiary  with the  Company or any
         other  Subsidiary;  provided,  however,  that  (A) at the  time  of and
         immediately  after giving effect to any such merger no Default or Event
         of Default shall have occurred,  (B) the Company shall be the surviving
         corporation  of any  merger  involving  the  Company,  (C)  no  Foreign
         Subsidiary  may merge with a Domestic  Subsidiary  unless the  Domestic
         Subsidiary  shall be the surviving  corporation in such merger,  (D) no
         Foreign Subsidiary any Capital Stock of which is pledged under a Pledge
         Agreement may merge with another  Subsidiary any Capital Stock of which
         is not so pledged  unless such first  Foreign  Subsidiary  shall be the
         surviving  corporation in such merger,  (E) no Domestic  Subsidiary may
         merge with another Subsidiary unless the surviving  corporation in such
         merger is a Guarantor  and (F) no Borrower  may merge with a Subsidiary
         which  is  not  a  Borrower  unless  such  Borrower  is  the  surviving
         corporation in such merger; and

                     (h) the  merger  of the  Company  with and  into any  newly
         created  corporation;  provided  that  (i)  such  corporation  is a "C"
         corporation, (ii) the Capital Stock of such corporation is, at the time

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         of such merger,  owned (beneficially and of record) by the same Persons
         and in the same  proportion by each such Person as is the Capital Stock
         of the Company  immediately  prior to the creation of such  corporation
         (after giving  effect to the  conversion  of preferred  interests  into
         common interests), (iii) such corporation has no material assets (other
         than its equity interest in the Company) or material  liabilities prior
         to such  merger,  (iv)  the  Agent  holds a first  priority,  perfected
         security interest in the Capital Stock of such corporation  (other than
         any shares owned by Persons who have not pledged their equity interests
         in the Company), (v) such corporation agrees, in writing, to assume the
         obligations of the Company  hereunder,  (vi) such merger is effected in
         contemplation  of an initial  public  offering of the Capital  Stock of
         such  corporation  or the  owner of 100% of the  Capital  Stock of such
         corporation and such initial public offering is consummated as promptly
         as is  practicable  (and,  in  any  event,  within  30  Business  Days)
         following  such merger and (vii) at the time of and  immediately  after
         giving  effect to such merger no Default or Event of Default shall have
         occurred.

                  14.7 Dividends and Distributions.  Declare or pay, directly or
indirectly, any dividend or make any other distribution (by reduction of capital
or otherwise),  whether in cash, property,  securities or a combination thereof,
with  respect to any  shares of its  Capital  Stock or  directly  or  indirectly
redeem,  purchase,  retire  or  otherwise  acquire  for  value  (or  permit  any
Subsidiary  to purchase or acquire) any shares of any class of its Capital Stock
or set aside any amount for any such purpose;  provided,  however,  that (a) any
Subsidiary  may declare and pay  dividends  or make other  distributions  to the
Company or to a Guarantor; (b) the Company may effect the Recapitalization;  (c)
the Company may  repurchase up to $1,000,000 of common  interests from employees
(and  their  permitted  transferees)  pursuant  to the  Management  Subscription
Agreements;  (d) during such time as the Company is treated as a partnership for
United States federal income tax purposes, the Company may make distributions to
members  from time to time in the amount  equal to the  amount of  distributions
contemplated  to be made  pursuant  to Section 5.5 of the LLC  Agreement  of the
Company  (as in  effect  on the date  hereof  and as the  same  may be  amended,
supplemented  or otherwise  modified  from time to time in  accordance  with the
provisions  of   subsection   14.11(a));   provided   that  such   dividends  or
distributions  may not be paid  more than 10 days  prior to the date upon  which
quarterly estimated tax payments or annual tax payments (as applicable) are owed
by corporate Members pursuant to the Code.

                  14.8  Transactions  with  Affiliates.  Sell  or  transfer  any
property or assets to, or purchase or acquire any  property or assets  from,  or
otherwise engage in any other transactions  with, any of its Affiliates,  except
that as long as no  Default  or Event of  Default  shall  have  occurred  and be
continuing,  the Company or any  Subsidiary  may engage in any of the  foregoing
transactions  in the  ordinary  course of  business  at prices  and on terms and
conditions  not less favorable to the Company or such  Subsidiary  than could be
obtained  on an  arm's-length  basis from  unrelated  third  parties;  provided,
however, that this subsection 14.8 shall not restrict:

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                  (i)  any transaction expressly permitted by subsection 14.5,
         14.6 or 14.7;

                  (ii)  the consummation of the Recapitalization;

                  (iii)  the payment to Vestar of its investment banking
         advisory fees in connection with the Recapitalization;

                  (v) the  payment of amounts  owing to Vestar  pursuant  to the
         Vestar  Management  Agreement or to RPI pursuant to the RPI  Consulting
         Agreement; provided that (i) such amounts shall not be paid more than 3
         Business  Days prior to the date when due under the  Vestar  Management
         Agreement or the RPI Consulting Agreement, as the case may be, and (ii)
         during such time as any Event of Default is continuing under subsection
         16(b) or (c), such payments shall not exceed $500,000 per annum to each
         of Vestar and RPI;  provided that amounts in excess  thereof may accrue
         (without interest) and be paid upon the cure or waiver of such Event of
         Default; and

                  (vi)  any  license  agreements  between  the  Company  and its
         Subsidiaries   pursuant   to  which   any  such   Subsidiary   licenses
         intellectual property of the Company and/or any of its Subsidiaries.

                  14.9 Business of Company and Subsidiaries.  Engage at any time
in any business which is not the same as, or similar,  ancillary,  complementary
or related  to, the  business  in which the  Company  and its  Subsidiaries  are
engaged on the Closing Date.

                  14.10  Limitations  on  Certain  Debt  Payments  and  Interest
Payments.  (a) Optionally  prepay,  repurchase or redeem or otherwise defease or
segregate  funds with  respect to any  Indebtedness  for  borrowed  money of the
Company   (including   the  Senior   Subordinated   Indebtedness),   other  than
Indebtedness  under this  Agreement;  or (b) make any  payment on account of the
Senior Subordinated  Indebtedness (other than as permitted by the Indenture with
respect thereto).

                  14.11 Amendment of Certain Documents;  Certain Agreements. (a)
Permit  any  termination  of, or any  amendment  or  modification  that,  in the
reasonable  judgment  of the Agent,  is adverse in any  material  respect to the
Lenders to, (i) the LLC Agreement of the Company (other than in connection  with
a  transaction  contemplated  by  subsection  14.6(h)),  (ii) the By-laws of the
Company, (iii) any Recapitalization  Document (other than, subject to subsection
18.1, a Loan Document) or (iv) any Rate Protection Agreement.

                  (b) Without the prior written consent of the Required Lenders,
amend,  supplement  or otherwise  modify the terms of (i) the Vestar  Management
Agreement or the RPI Consulting  Agreement in any manner which could  reasonably
be expected to be adverse to the rights or interests of the Agent or the Lenders
or (ii) the Senior Subordinated Indebtedness.

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                  (c)  Permit  any  Subsidiary  to  enter  into  any  indenture,
agreement or other  instrument  that restricts the ability of such Subsidiary to
pay  dividends  or make  distributions  on its  Capital  Stock,  other  than any
provisions of any document,  instrument or agreement governing  Indebtedness for
borrowed money of Foreign Subsidiaries of the Company.

                  14.12  Limitation  on  Capital  Lease  Obligations.  Create or
suffer to exist any Capital Lease  Obligation,  except Capital Lease Obligations
incurred  by the  Company to finance  the  acquisition  of  equipment  and other
property,  so long as (a) the  aggregate  amount of Specified  Obligation  Usage
(after giving effect to the incurrence of such Capital Lease  Obligations)  does
not exceed $10,000,000 at any one time outstanding, (b) not more than $1,500,000
of  such  Capital  Lease  Obligation  at  one  time  shall  at the  time  of its
incurrence,  have an average life to maturity  which is shorter than the average
life to maturity of the  Domestic  Term Loans  outstanding  at such time and (c)
none of the related leases shall contain financial covenants.

                  14.13 Capital Expenditures.  Make or permit to be made Capital
Expenditures  in excess of  $8,000,000  (or,  with  respect to the  period  from
Closing Date through December 31, 1996,  $6,600,000) in the aggregate during any
fiscal year of the Company; provided, however, that any unused amount of Capital
Expenditures  permitted  to be made during a fiscal year may be carried  over to
the next fiscal year only (but not to any subsequent year  thereafter) and shall
be deemed to be the last Capital Expenditures made during such next fiscal year.

                  14.14 Fixed  Charge  Coverage  Ratio.  Permit the Fixed Charge
Coverage Ratio for the period of four consecutive  fiscal quarters ending on the
last day of any fiscal  quarter  ending  during any period set forth below to be
less than the ratio set forth opposite such period:

                           Period                           Ratio

                      04/01/99 -  12/30/99                 0.70 to 1.0
                      12/31/99 -  12/30/00                 0.85 to 1.0
                      12/31/00 -  06/29/01                 1.00 to 1.0
                      06/30/01 -  thereafter               1.05 to 1.0

; provided that, for purposes of determining  compliance  with the provisions of
this subsection 14.14, (x) the EBITDA for such period of four fiscal quarters of
any Person  acquired by the Company  during such period shall be included in the
EBITDA of the  Company,  on a pro forma basis as if the same had occurred on the
first day of such  period  and (y) the  Fixed  Charges  for such  period of such
Person  shall be included  in the Fixed  Charges of the  Company,  on such a pro
forma  basis,  as if such  Person  had been  acquired  on the  first day of such
period.

                  14.15 Interest  Expense  Coverage  Ratio.  Permit the Interest
Expense Coverage Ratio for any period of four consecutive fiscal quarters ending
on the last day of any fiscal  quarter  ending during any period set forth below
to be less than the ratio set forth opposite such period:

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                           Period                              Ratio

                      03/31/99 -  12/30/99                    1.00 to 1.0
                      12/31/99 -  12/30/00                    1.25 to 1.0
                      12/31/00 -  06/29/01                    1.50 to 1.0
                      06/30/01 -  thereafter                  1.70 to 1.0

; provided that, for purposes of determining  compliance  with the provisions of
this subsection 14.15, (x) the EBITDA for such period of four fiscal quarters of
any Person  acquired by the Company  during such period shall be included in the
EBITDA of the  Company,  on a pro forma basis as if the same had occurred on the
first day of such  period and (y) the Cash  Interest  Expense for such period of
such Person shall be included in the Cash  Interest  Expense of the Company,  on
such a pro forma basis,  as if such Person had been acquired on the first day of
such period.

                  14.16(a) Leverage  Ratio14.16(a) Leverage Ratio.16(a) Leverage
Ratio.  Permit  the  Leverage  Ratio for the period of four  consecutive  fiscal
quarters  ending on the last day of any fiscal  quarter ending during any period
set forth below to be in excess of the ratio set forth opposite such period:

                           Period                               Ratio

                      06/30/99 -  12/30/99                     9.00 to 1.0
                      12/31/99 -  12/30/00                     8.00 to 1.0
                      12/31/00 -  06/29/01                     6.50 to 1.0
                      06/30/01 -  thereafter                   4.50 to 1.0

; provided that, for purposes of determining  compliance  with the provisions of
this subsection 14.16, (x) the EBITDA for such period of four fiscal quarters of
any Person  acquired by the Company  during such period shall be included in the
EBITDA of the  Company,  on a pro forma basis as if the same had occurred on the
first day of such period and (y) the  Included  Indebtedness  for such period of
such Person shall be included in the Included  Indebtedness  of the Company,  on
such a pro forma basis,  as if such Person had been acquired on the first day of
such period.

                  14.16(b)  Senior  Leverage  Ratio.  Permit the Senior Leverage
Ratio for the period of four consecutive  fiscal quarters ending on the last day
of any fiscal  quarter  ending during any period set forth below to be in excess
of the ratio set forth opposite such period:

                           Period                               Ratio

                      03/31/99 -  12/30/99                   3.20 to 1.0
                      12/31/99 -  thereafter                 3.00 to 1.0

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                  14.17  Landlord  Lien  Waivers.  Permit more than  $250,000 of
Inventory to be held at any location (other than at any of the Company's  retail
stores) which is not owned by the Company or any of its Subsidiaries, unless the
owner  (and,  to the extent  that the  operator  thereof  would be entitled to a
warehouseman's  or similar Lien on such  Inventory  by  operation  of law,  such
operator) of such  location has executed and delivered to the Agent a Landlord's
Lien Waiver, substantially in the form of Exhibit E.

                  14.18 Limitation on Preferred Equity. Incur, create, assume or
permit to exist any preferred stock or other analogous equity  interests,  other
than any such preferred  stock or equity interest which does not provide for the
payment of a cash dividend or  distribution  during such time as the Commitments
remain  in  effect  or any L/C  Obligation  is  outstanding  or  amount is owing
hereunder.

                  14.19 Matters Relating to Remington Rand  Corporation.  Permit
Remington Rand  Corporation  to have any material  assets (other than its equity
interests  in  Remington  Corporation,  L.L.C.) or  liabilities  (other than its
guarantee of the obligations hereunder and on account of the Senior Subordinated
Indebtedness),  or to conduct any meaningful business,  other than its ownership
of Remington Corporation, L.L.C.

                  14.20 Covenants of Other  Borrowers.  Each Borrower other than
the Company  covenants and agrees with each Lender  (including the Issuing Bank)
that it shall abide by the covenants of the Company set forth in this Section 14
to the extent the Company has  covenanted to cause it to take or to refrain from
taking any action.

                  14.21 Payments in Respect of Accounts.  The Company shall not,
nor  shall it permit  any of its  Subsidiaries  organized  under the laws of the
United States or the United Kingdom to, instruct or otherwise  permit any Person
obligated  under any of the Accounts (as defined in the Security  Agreements) to
remit any payment (whether by check,  wire transfer or otherwise) to any account
other than a Lock Box Account (as defined in the Lock Box Agreement) established
by the  Agent  pursuant  to a Lock Box  Agreement,  other  than,  in the case of
amounts owing to the UK Borrower and its  Subsidiaries,  payments which are made
through an alternate  means which (in the reasonable  judgment of the Agent) (a)
enables the Agent to maintain a perfected,  first priority  security interest in
such payments and the proceeds  thereof and (b) provides for the  application of
such  proceeds in the same manner as payments  deposited  in a Lock Box Account.
The Company  hereby  agrees  that it shall not,  and shall not permit any of its
Subsidiaries  to,  cause or permit any amounts  which are not  Collateral  to be
deposited in the Lock Box Accounts (as defined in the Lock-Box Agreement).

                  14.22 Bank  Accounts.  The  Company  shall  not,  nor shall it
permit  any of its  Subsidiaries  to,  establish  or  maintain,  or permit to be
established or maintained,  any bank accounts in the name of, or for the benefit
of,  the  Company  or any of its  Domestic  Subsidiaries,  other  than  (x) bank
accounts  established  or  maintained  with a  Bank,  (y)  other  bank  accounts
containing  operating funds required to cover  substantially  immediate  payment
obligations (including,  without limitation,  payroll obligations) and (z) other

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operating  bank accounts  which are debited on a daily basis so that they do not
contain any material overnight deposits.

                  14.23 Asset  Coverage.  The  aggregate  outstanding  principal
amount of  Indebtedness  of the Company and its  Subsidiaries  on a consolidated
basis (other than the Senior Subordinated  Indebtedness) shall not exceed at any
date the amount equal to 75% of the aggregate book value of all cash,  Permitted
Investments,  accounts receivable,  inventory and property,  plant and equipment
reflected  in  accordance  with GAAP on the balance  sheet of the  Company  most
recently delivered by the Company pursuant to subsection 13.4(a) or (b).

                  14.24 Matters Relating to Remington Germany.  The Company
shall not, nor shall it permit any of its Subsidiaries to, allow the stated
capital of Remington Germany to be increased without the consent of the Agent.

                              SECTION 15. GUARANTEE

                  15.1  Guarantee.  In order to induce the Lenders,  the Issuing
Banks,  the  Co-Documentation  Agents and the Agent to execute and deliver  this
Agreement and to make the extensions of credit  hereunder,  and in consideration
thereof:

                  (a)  The  Company  hereby   unconditionally   and  irrevocably
         guarantees to the Agent,  for the ratable  benefit of the Lenders,  the
         prompt and complete  payment and  performance  when due (whether at the
         stated  maturity,  by  acceleration  or  otherwise)  of the  Subsidiary
         Obligations.  The Company  further  agrees to pay any and all  expenses
         (including,  without limitation,  all reasonable fees and disbursements
         of  counsel)  which  may be paid or  incurred  by the  Agent  or by the
         Lenders in enforcing, or obtaining advice of counsel in respect of, any
         of their rights under this Section 15. Without  limiting the generality
         of the foregoing,  the Company's  liability shall extend to all amounts
         that constitute part of the Subsidiary Obligations and would be owed by
         the UK  Borrower  but for the fact that they are  unenforceable  or not
         allowable  due to the  existence  of a  bankruptcy,  reorganization  or
         similar  proceeding  involving the UK Borrower.  This  Guarantee  shall
         remain in full force and effect until the Commitments  have terminated,
         no L/C  Obligations  are  outstanding  and all amounts owing under this
         Agreement  have  been paid in full,  notwithstanding  that from time to
         time prior  thereto  the UK Borrower  may be free from any  obligations
         hereunder.

                  (b) The Company  agrees that  whenever,  at any time,  or from
         time to time,  it shall make any  payment to the Agent or any Lender on
         account of its  liability  under this  Section  15, it will  notify the
         Agent or such  Lender in writing  that such  payment is made under this
         Section 15 for such  purpose.  No payment  or  payments  made by the UK
         Borrower or any other  Person or received or  collected by the Agent or
         any Lender from the UK  Borrower  or any other  Person by virtue of any
         action or proceeding or any set-off or appropriation or application, at

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         any time or from time to time,  in  reduction  of or in  payment of the
         Subsidiary  Obligations shall be deemed to modify,  reduce,  release or
         otherwise  affect the  liability of the Company  hereunder  which shall
         remain  obligated  hereunder,   notwithstanding  any  such  payment  or
         payments (other than payments made by or received or collected from the
         Company in respect of the Subsidiary  Obligations)  until the date upon
         which all amounts owing under this Agreement have been paid in full.

                  15.2 Right of Set-Off.  Upon the occurrence and continuance of
any  Event  of  Default,  the  Agent  and each  Lender  are  hereby  irrevocably
authorized  by the Company at any time and from time to time  without  notice to
the Company,  any such notice being hereby waived by the Company, to set off and
appropriate and apply any and all deposits (general or special,  time or demand,
provisional or final), in any currency,  and any other credits,  indebtedness or
claims,  in any currency,  in each case whether direct or indirect,  absolute or
contingent, matured or unmatured, at any time held or owing by the Agent or such
Lender to or for the credit or the account of the  Company,  or any part thereof
in such  amounts  as the Agent or such  Lender  may  elect,  on  account  of the
liabilities of the Company  hereunder and claims of every nature and description
of the Agent or such  Lender  against  the  Company,  in any  currency,  whether
arising hereunder or any other Loan Document or otherwise,  as the Agent or such
Lender  may elect,  whether or not the Agent or such  Lender has made any demand
for  payment and  although  such  liabilities  and claims may be  contingent  or
unmatured.  The Agent and each Lender shall  notify the Company  promptly of any
such set-off made by it and the application made by it of the proceeds  thereof;
provided  that the failure to give such notice  shall not affect the validity of
such set-off and application. The rights of the Agent and each Lender under this
subsection  are in addition to other  rights and  remedies  (including,  without
limitation, other rights of set-off) which the Agent or such Lender may have.

                  15.3 No Subrogation.  Notwithstanding  any payment or payments
made by the Company  hereunder,  or any set-off or  application  of funds of the
Company by the Agent or any  Lender,  the  Company  shall not be  entitled to be
subrogated  to any of the  rights  of the  Agent or any  Lender  against  the UK
Borrower or against any collateral security or guarantee or right of offset held
by the Agent or any Lender for the payment of the  Subsidiary  Obligations,  nor
shall the Company seek or be entitled to seek any  contribution or reimbursement
from the UK Borrower in respect of payments made by the Company hereunder, until
the  Commitments  have  terminated,  no L/C  Obligations are outstanding and all
amounts  owing to the Agent and the Lenders by the UK Borrower have been paid in
full. If any amount shall be paid to the Company on account of such  subrogation
rights at any time when the Commitments have not terminated, any L/C Obligations
are outstanding or all amounts owing hereunder shall not have been paid in full,
such amount shall be held by the Company in trust for the Agent and the Lenders,
segregated from other funds of the Company, and shall, forthwith upon receipt by
the  Company,  be turned  over to the Agent in the exact  form  received  by the
Company (duly indorsed by the Company to the Agent, if required),  to be applied
against the Subsidiary Obligations,  whether matured or unmatured, in such order
as the Agent may determine.

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                  15.4  Amendments,  etc.  The Company  shall  remain  obligated
hereunder  notwithstanding  that,  without any reservation of rights against the
Company,  and without notice to or further assent by the Company, any demand for
payment of any of the Subsidiary Obligations made by the Agent or any Lender may
be rescinded by the Agent or such Lender, and any of the Subsidiary  Obligations
continued,  and the Subsidiary Obligations,  or the liability of any other party
upon or for any part thereof,  or any collateral  security or guarantee therefor
or right of offset with respect thereto,  may, from time to time, in whole or in
part, be renewed, extended, amended, modified, accelerated, compromised, waived,
surrendered  or  released by the Agent or any Lender,  and this  Agreement,  any
other Loan Document and any other documents executed and delivered in connection
therewith may be amended,  modified,  supplemented or terminated, in whole or in
part,  as the  Required  Lenders  or the  Lenders,  as the case may be, may deem
advisable from time to time, and any collateral security,  guarantee or right of
offset  at any time  held by the  Agent or any  Lender  for the  payment  of the
Subsidiary Obligations may be sold, exchanged,  waived, surrendered or released.
Neither the Agent nor any Lender shall have any  obligation to protect,  secure,
perfect or insure any Lien at any time held by it as security for the Subsidiary
Obligations or pursuant to this Section 15 or any property subject thereto.

                  15.5 Guarantee Absolute and Unconditional.  The Company waives
any and all notice of the creation,  renewal, extension or accrual of any of the
Subsidiary  Obligations  and notice of or proof of  reliance by the Agent or any
Lender upon the  guarantees  contained in this Section 15 or  acceptance  of the
guarantee provisions of this Section 15; the Subsidiary Obligations,  and any of
them, shall conclusively be deemed to have been created,  contracted or incurred
in reliance upon the  guarantees  contained in this Section 15; and all dealings
between the UK Borrower or the Company,  on the one hand,  and the Agent and the
Lenders, on the other, shall likewise be conclusively  presumed to have been had
or consummated in reliance upon the guarantees contained in this Section 15. The
Company waives (to the extent permitted by law) diligence, presentment, protest,
demand  for  payment  and  notice of  default  or  nonpayment  to or upon the UK
Borrower  or the  Company  with  respect  to  the  Subsidiary  Obligations.  The
guarantees  contained in this  Section 15 shall be  construed  as a  continuing,
absolute  and  unconditional  guarantee  of  payment  without  regard to (a) the
validity or enforceability of this Agreement,  any other Loan Document or any of
the  documents  executed  in  connection   therewith,   any  of  the  Subsidiary
Obligations or any collateral  security therefor or guarantee or right of offset
with  respect  thereto at any time or from time to time held by the Agent or any
Lender,  (b)  any  defense  (including,   without  limitation,  any  statute  of
limitations),  set-off  or  counterclaim  (other  than a defense  of  payment or
performance)  which may at any time be  available  to or be  asserted  by the UK
Borrower  against  the  Agent  or any  Lender,  or (c)  any  other  circumstance
whatsoever  (with or without  notice to or  knowledge  of the UK Borrower or the
Company) which constitutes, or might be construed to constitute, an equitable or
legal  discharge of the UK Borrower for the  Subsidiary  Obligations,  or of the
Company under the  guarantees  contained in this Section 15, in bankruptcy or in
any other  instance.  When the Agent or any  Lender is  pursuing  its rights and
remedies  hereunder against the Company,  the Agent or any Lender may, but shall
be under no  obligation  to,  pursue  such  rights and  remedies  as it may have
against the UK Borrower or any other Person or against any  collateral  security
or guarantee for the Subsidiary  Obligations or any right of offset with respect

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thereto,  and any failure by the Agent or any Lender to pursue such other rights
or remedies or to collect  any  payments  from the UK Borrower or any such other
Person or to  realize  upon any such  collateral  security  or  guarantee  or to
exercise any such right of offset, or any release of the UK Borrower or any such
other Person or of any such collateral  security,  guarantee or right of offset,
shall not relieve the Company of any liability  hereunder,  and shall not impair
or affect the rights and remedies,  whether  express,  implied or available as a
matter of law, of the Agent and the Lenders against the Company.

                  15.6 Reinstatement.  Each of the guarantees  contained in this
Section 15 shall continue to be effective, or be reinstated, as the case may be,
if at  any  time  payment,  or any  part  thereof,  of  any  of  the  Subsidiary
Obligations  is rescinded or must otherwise be restored or returned by the Agent
or any Lender  upon the  insolvency,  bankruptcy,  dissolution,  liquidation  or
reorganization of the UK Borrower or upon or as a result of the appointment of a
receiver,  intervenor or conservator  of, or trustee or similar officer for, the
UK Borrower or any substantial part of their respective property,  or otherwise,
all as though such payments had not been made.

                  15.7  Payments.  The  Company  hereby  agrees that the amounts
payable by the Company  hereunder  will be paid to the Agent without  set-off or
counterclaim in Dollars or, with respect to the UK Loans, Pounds Sterling at the
office of the Agent  specified in subsection 18.2 or at such other office as the
Agent shall designate in writing to the Company.

                          SECTION 16. EVENTS OF DEFAULT

                  If any of the following events shall occur and be continuing:

                           (a) any  representation  or  warranty  made or deemed
         made in any Loan Document, or any representation,  warranty,  statement
         or  information  contained  in  any  report,   certificate,   financial
         statement or other instrument  furnished pursuant to any Loan Document,
         shall prove to have been false or  misleading  in any material  respect
         when so made, deemed made or furnished;

                           (b)  default  shall  be  made in the  payment  of any
         principal   of  any  Loan  or   reimbursement   with   respect  to  any
         Reimbursement  Obligation  when and as the same  shall  become  due and
         payable, whether at the due date thereof or at a date fixed for payment
         thereof or by acceleration thereof or otherwise;

                           (c)  default  shall  be  made in the  payment  of any
         interest  on any  Loan or  Reimbursement  Obligation  or any fee or any
         other amount (other than an amount  referred to in (b) above) due under
         any Loan  Document,  when and as the same shall become due and payable,
         and  such  default  shall  continue  unremedied  for a  period  of five
         Business Days;

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                           (d) default  shall be made in the due  observance  or
         performance by the Company or any Subsidiary of any covenant, condition
         or agreement contained in subsection 13.1(a),  13.4, 13.5 or 13.8 or in
         Section 14;

                           (e) default  shall be made in the due  observance  or
         performance by the Company or any Subsidiary of any covenant, condition
         or agreement contained in any Loan Document (other than those specified
         in paragraph  (b), (c) or (d) above) and such  default  shall  continue
         unremedied  for a period of 30 days after notice thereof from the Agent
         or any Lender to the Company;

                           (f) the Company or any  Subsidiary  shall (i) fail to
         pay  any  amount  of  principal  or  interest  due  in  respect  of any
         Indebtedness  having a principal  amount in excess of $5,000,000,  when
         and as the same shall become due and payable  (after  giving  effect to
         any applicable  grace  period),  or (ii) fail to observe or perform any
         other term, covenant, condition or agreement contained in any agreement
         or  instrument  evidencing or governing  any such  Indebtedness  if the
         effect of any failure  referred to in this clause (ii) is to cause,  or
         to permit the holder or  holders of such  Indebtedness  or a trustee on
         its or their behalf (with or without the giving of notice, the lapse of
         time or both) to cause,  such  Indebtedness  to become due prior to its
         stated maturity;

                           (g) an involuntary  proceeding  shall be commenced or
         an involuntary petition shall be filed seeking (i) relief in respect of
         the Company or any Subsidiary, or of a substantial part of the property
         or assets of the Company or a Subsidiary,  under Title 11 of the United
         States Code,  as now  constituted  or hereafter  amended,  or any other
         Federal or state bankruptcy, insolvency,  receivership,  administration
         or similar law or any analogous law of a foreign jurisdiction, (ii) the
         appointment  of  a  liquidator,   receiver,   administrative  receiver,
         trustee, custodian,  sequestrator,  conservator or similar official for
         the Company or any Subsidiary or for a substantial part of the property
         or assets of the Company or a  Subsidiary  or (iii) the  winding-up  or
         liquidation of the Company or any  Subsidiary;  and such  proceeding or
         petition shall continue  undismissed  for 60 days or an order or decree
         approving or ordering any of the foregoing shall be entered;

                           (h)  the   Company  or  any   Subsidiary   shall  (i)
         voluntarily commence any proceeding or file any petition seeking relief
         under  Title  11 of the  United  States  Code,  as now  constituted  or
         hereafter   amended,   or  any  other  Federal  or  state   bankruptcy,
         insolvency,   receivership,   administration  or  similar  law  or  any
         analogous  law  of  a  foreign   jurisdiction,   (ii)  consent  to  the
         institution of, or fail to contest in a timely and  appropriate  manner
         (but within 60 days in any event),  any proceeding or the filing of any
         petition  described  in (g)  above,  (iii)  apply for or consent to the
         appointment  of  a  liquidator,   receiver,   administrative  receiver,
         trustee, custodian, sequestrator, conservator, administrator or similar
         official for the Company or any Subsidiary or for a substantial part of
         the property or assets of the Company or any  Subsidiary,  (iv) file an
         answer  admitting the material  allegations of a petition filed against
         it in any  such  proceeding,  (v)  make a  general  assignment  for the

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         benefit  of  creditors,  (vi)  become  unable,  admit  in  writing  its
         inability, or fail generally, or deemed by any law to be unable, to pay
         its debts as they become due,  (vii) be deemed by United Kingdom law to
         be insolvent or (viii) take any action for the purpose of effecting any
         of the foregoing;

                           (i) one or more judgments for the payment of money in
         an aggregate  amount in excess of $5,000,000 (to the extent not covered
         by insurance) shall be rendered against the Company,  any Subsidiary or
         any combination  thereof and the same shall remain  undischarged  for a
         period of 45  consecutive  days  during  which  execution  shall not be
         effectively  stayed, or any action shall be legally taken by a judgment
         creditor  to levy  upon  assets or  properties  of the  Company  or any
         Subsidiary to enforce any such judgment;

                           (j) a Reportable  Event or  Reportable  Events,  or a
         failure to make a required  installment  or other  payment  (within the
         meaning of Section  412(n)(l) of the Code),  shall have  occurred  with
         respect to any Plan or Plans  that  could  reasonably  be  expected  to
         result  in  liability  of the  Company,  any  Subsidiary  or any  ERISA
         Affiliate  to the  PBGC or to a Plan  and,  within  30 days  after  the
         reporting  of any  such  Reportable  Event to the  Agent  or after  the
         receipt by the Agent of the statement  required  pursuant to subsection
         13.6(b)(iii), the Agent shall have notified the Company in writing that
         (i) the Required Lenders have reasonably  determined that, on the basis
         of such Reportable Event or Reportable  Events or the failure to make a
         required payment,  there are reasonable grounds (A) for the termination
         of such  Plan or  Plans by the  PBGC,  (B) for the  appointment  by the
         appropriate  United  States  district  court of a trustee to administer
         such  Plan or Plans or (C) for the  imposition  of a lien in favor of a
         Plan and (ii) as a result thereof an Event of Default exists hereunder;
         or a trustee  shall be appointed by a United States  district  court to
         administer  any  such  Plan  or  Plans;  or the  PBGC  shall  institute
         proceedings  to  terminate  any  Plan or Plans  or give  notice  of its
         intention to do so; and, in connection with any of the events set forth
         in this paragraph (j), the liability that the Company, its Subsidiaries
         and its ERISA  Affiliates  could be reasonably  expected to incur would
         have a Material Adverse Effect;

                           (k) (i) the  Company,  any  Subsidiary  or any  ERISA
         Affiliate  shall have been  notified by the sponsor of a  Multiemployer
         Plan (or  otherwise  shall know or have a reasonable  basis to believe)
         that it has incurred  Withdrawal  Liability to such Multiemployer Plan,
         (ii) the Company,  such  Subsidiary or such ERISA  Affiliate  shall not
         have reasonable  grounds for contesting  such  Withdrawal  Liability or
         shall not in fact  contest  such  Withdrawal  Liability in a timely and
         appropriate  manner  and (iii) the amount of the  Withdrawal  Liability
         specified  in such  notice,  when  aggregated  with all  other  amounts
         required  to  be  paid  to  Multiemployer   Plans  in  connection  with
         unsatisfied Withdrawal Liabilities  (determined as of the date or dates
         of such notification),  could be reasonably expected to have a Material
         Adverse Effect;

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                           (l)  the  Company,   any   Subsidiary  or  any  ERISA
         Affiliate  shall have been  notified by the sponsor of a  Multiemployer
         Plan (or  otherwise  shall know or have a reasonable  basis to believe)
         that  such   Multiemployer  Plan  is  in  reorganization  or  is  being
         terminated, within the meaning of Title IV of the ERISA, if solely as a
         result of such  reorganization  or  termination  the  aggregate  annual
         contributions of the Company, the Subsidiaries and the ERISA Affiliates
         to all Multiemployer Plans that are then in reorganization or have been
         or are being terminated have been or will be increased over the amounts
         required to be contributed to such  Multiemployer  Plans for their most
         recently  completed  plan years by an amount  that could be  reasonably
         expected to have a Material Adverse Effect;

                           (m)  there shall have occurred a Change in Control;

                           (n) any security interest  purported to be created by
         any  Security  Document  shall cease to be, or shall be asserted by the
         Company or any Subsidiary not to be, a valid, perfected, first priority
         (except as otherwise expressly provided in the Credit Agreement or such
         Security  Document)  security  interest  in the  securities,  assets or
         properties   covered  thereby  (other  than  a  security   interest  in
         securities,  assets or  properties  having,  in the  aggregate,  a fair
         market value not in excess of $100,000),  except to the extent that any
         such loss of  perfection  or priority  results  from the failure of the
         Agent to maintain  possession of certificates  representing  securities
         pledged under a Pledge Agreement;

                           (o) any Loan Document (including, without limitation,
         the  guarantees  contained  in Section 15 hereof)  shall not be for any
         reason,  or shall be asserted by the Company or any  Subsidiary  not to
         be, in full force and effect and  enforceable in all material  respects
         in accordance with its terms;

                           (p)  the  Subsidiary  Obligations  or the  guarantees
         thereof pursuant to Section 15 hereof or the Obligations (as defined in
         the Subsidiaries  Guarantee) or any Subsidiaries  Guarantee shall cease
         to constitute, or shall be asserted by the Company or any Guarantor not
         to constitute,  senior indebtedness under the subordination  provisions
         of any subordinated  Indebtedness of the Company or such  subordination
         provisions shall be invalidated or otherwise cease to be a legal, valid
         and  binding   obligation  of  the  parties  thereto,   enforceable  in
         accordance with its terms; or

                           (q)  any  material   provision  of  any  Subsidiaries
         Guarantee  or of Section 15 hereof  shall cease to be in full force and
         effect  and  enforceable  in  accordance  with its terms for any reason
         whatsoever  or the Company or any  Guarantor  shall  contest or deny in
         writing the validity or  enforceability of any of its obligations under
         any such Guarantee or the obligations guaranteed thereby shall cease to
         be entitled to the material benefits of any other Loan Document for any
         reason whatsoever;

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then,  and in every such event (other than an event with respect to any Borrower
described in paragraph (g) or (h) above),  and at any time thereafter during the
continuance  of such event,  the Agent may,  and at the request of the  Required
Lenders  shall,  by notice to the Company,  take either or both of the following
actions,  at the same or different times: (i) terminate  forthwith any or all of
the Commitments and (ii) declare any or all of the Loans then  outstanding to be
forthwith  due and payable in whole or in part,  whereupon  the principal of the
Loans so declared to be due and payable,  together with accrued interest thereon
and any unpaid accrued fees and all other  liabilities of the Borrowers  accrued
hereunder  (including,  without  limitation,  all  amounts  of L/C  Obligations,
whether or not the beneficiaries of the then outstanding Letters of Credit shall
have  presented  the  documents  required  thereunder)  and under any other Loan
Document, shall become forthwith due and payable,  without presentment,  demand,
protest  or any  other  notice of any kind,  all of which are  hereby  expressly
waived by the Borrower,  anything contained herein or in any other Loan Document
to the contrary  notwithstanding;  and in any event with respect to any Borrower
described in paragraph (g) or (h) above,  the  Commitments  shall  automatically
terminate and the principal of the Loans then outstanding, together with accrued
interest  thereon and any unpaid  accrued fees and all other  liabilities of the
Borrowers accrued hereunder (including,  without limitation,  all amounts of L/C
Obligations, whether or not the beneficiaries of the then outstanding Letters of
Credit shall have  presented the documents  required  thereunder)  and under any
other Loan Document, shall automatically become due and payable.

                  With  respect to all Letters of Credit  with  respect to which
presentment  for honor shall not have  occurred  at the time of an  acceleration
pursuant to the preceding paragraph, the Company shall at such time deposit in a
cash  collateral  account  opened by the Agent an amount equal to the  aggregate
then undrawn and unexpired amount of such Letters of Credit.  The Company hereby
grants  to the  Agent,  for  the  benefit  of  the  Issuing  Bank  and  the  L/C
Participants,  a  security  interest  in such  cash  collateral  to  secure  all
obligations  of the Company under this  Agreement and the other Loan  Documents.
Amounts held in such cash  collateral  account  shall be applied by the Agent to
the payment of drafts drawn under such Letters of Credit, and the unused portion
thereof  after all such Letters of Credit shall have expired or been fully drawn
upon,  if any,  shall be  applied  to repay  other  obligations  of the  Company
hereunder  and under the  Notes.  After all such  Letters  of Credit  shall have
expired or been fully drawn upon, all Reimbursement  Obligations shall have been
satisfied and all other obligations of the Company hereunder and under the Notes
shall  have been paid in full,  the  balance,  if any,  in such cash  collateral
account shall be returned to the Company.  The Company shall execute and deliver
to the Agent, for the account of the Issuing Bank and the L/C Participants, such
further  documents  and  instruments  as the Agent may request to  evidence  the
creation and perfection of the within security  interest in such cash collateral
account.

                  Except as expressly provided in this Section 16,  presentment,
demand,  protest or all other notice of any kind are hereby  expressly waived by
each Borrower.

                              SECTION 17. THE AGENT

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                  17.1 Appointment.  Each Lender hereby  irrevocably  designates
and appoints the Agent as the agent of such Lender under this  Agreement and the
other Loan Documents,  and each such Lender irrevocably authorizes the Agent, in
such  capacity,  to take such action on its behalf under the  provisions of this
Agreement  and the other Loan  Documents and to exercise such powers and perform
such  duties  as are  expressly  delegated  to the  Agent  by the  terms of this
Agreement and the other Loan  Documents,  together with such other powers as are
reasonably  incidental  thereto.  Notwithstanding  any provision to the contrary
elsewhere in this Agreement or any other Loan Document, the Agent shall not have
any duties or responsibilities,  except those expressly set forth herein, or any
fiduciary  relationship with any Lender,  and no implied  covenants,  functions,
responsibilities,  duties,  obligations or  liabilities  shall be read into this
Agreement  or any other Loan  Document  or  otherwise  exist  against the Agent.
Neither any Co-Documentation Agent nor any Issuing Bank shall have any duties or
responsibilities hereunder or any fiduciary relationship with any Lender, and no
implied  covenants,   functions,   responsibilities,   duties,   obligations  or
liabilities  shall be read into this  Agreement  or any other Loan  Document  or
otherwise exist against either Co-Documentation Agent or any Issuing Bank.

                  17.2  Delegation  of Duties.  The Agent may execute any of its
duties under this Agreement and the other Loan Documents by or through agents or
attorneys-in-fact  and shall be  entitled  to advice of counsel  concerning  all
matters  pertaining to such duties.  The Agent shall not be responsible  for the
negligence or misconduct of any agents or attorneys  in-fact selected by it with
reasonable care.

                  17.3 Exculpatory Provisions.  Neither the Agent nor any of its
officers, directors, employees, agents, attorneys-in-fact or Affiliates shall be
(i) liable for any  action  lawfully  taken or omitted to be taken by it or such
Person under or in  connection  with this  Agreement or any other Loan  Document
(except for its or such Person's own gross negligence or willful  misconduct) or
(ii)  responsible  in  any  manner  to  any of the  Lenders  for  any  recitals,
statements,  representations  or  warranties  made by the Company or any officer
thereof  contained  in this  Agreement  or any  other  Loan  Document  or in any
certificate, report, statement or other document referred to or provided for in,
or received by the Agent under or in  connection  with,  this  Agreement  or any
other Loan  Document  or for the value,  validity,  effectiveness,  genuineness,
enforceability  or  sufficiency  of this Agreement or any other Loan Document or
for any  failure of the Company or any other  Person to perform its  obligations
hereunder  or  thereunder.  The Agent shall not be under any  obligation  to any
Lender to ascertain or to inquire as to the  observance or performance of any of
the agreements  contained in, or conditions of, this Agreement or any other Loan
Document, or to inspect the properties,  books or records of the Company and its
Subsidiaries.

                  17.4  Reliance by Agent.  The Agent shall be entitled to rely,
and shall be fully  protected in relying,  upon any Note,  writing,  resolution,
notice, consent,  certificate,  affidavit,  letter,  telecopy, telex or teletype
message, statement, order or other document or conversation believed by it to be
genuine and correct and to have been signed,  sent or made by the proper  Person

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or Persons and upon advice and statements of legal counsel  (including,  without
limitation,  counsel to the Company),  independent accountants and other experts
selected by the Agent. The Agent may deem and treat the payee of any Note as the
owner  thereof  for  all  purposes   unless  a  written  notice  of  assignment,
negotiation or transfer  thereof shall have been filed with the Agent. The Agent
shall be fully  justified  in failing or refusing to take any action  under this
Agreement or any other Loan  Document  unless it shall first receive such advice
or concurrence of the Required  Lenders or (if required) the Lenders as it deems
appropriate or it shall first be indemnified to its  satisfaction by the Lenders
against any and all  liability and expense which may be incurred by it by reason
of taking or continuing to take any such action. The Agent shall in all cases be
fully protected in acting,  or in refraining  from acting,  under this Agreement
and the other  Loan  Documents  in  accordance  with a request  of the  Required
Lenders or (if required)  the Lenders,  and such request and any action taken or
failure to act  pursuant  thereto  shall be binding upon all the Lenders and all
future holders of the Loans.

                  17.5 Notice of Default.  The Agent shall not be deemed to have
knowledge  or  notice  of the  occurrence  of any  Default  or Event of  Default
hereunder  unless the Agent has  received  notice  from a Lender or the  Company
referring  to this  Agreement,  describing  such Default or Event of Default and
stating that such notice is a "notice of  default".  In the event that the Agent
receives such a notice, the Agent shall give notice thereof to the Lenders.  The
Agent shall take such action with respect to such Default or Event of Default as
shall be  reasonably  directed  by the  Required  Lenders or (if  required)  the
Lenders ;  provided  that unless and 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 in the best interests of the Lenders.

                  17.6  Non-Reliance  on Agent and Other  Lenders.  Each  Lender
expressly  acknowledges  that  neither  the  Agent  nor  any  of  its  officers,
directors,  employees,  agents,  attorneys-in-fact  or  Affiliates  has made any
representations  or  warranties  to it and that no act by the Agent  hereinafter
taken,  including any review of the affairs of the Borrowers  shall be deemed to
constitute  any  representation  or warranty  by the Agent to any  Lender.  Each
Lender  represents to the Agent that it has,  independently and without reliance
upon the Agent or any other Lender,  and based on such documents and information
as it has deemed  appropriate,  made its own appraisal of and investigation into
the  business,   operations,   property,   financial  and  other  condition  and
creditworthiness  of the  Company  and made its own  decision  to make its Loans
hereunder and enter into this  Agreement.  Each Lender also  represents  that it
will, independently and without reliance upon the Agent or any other Lender, and
based on such  documents and  information  as it shall deem  appropriate  at the
time,  continue to make its own credit  analysis,  appraisals  and  decisions in
taking or not taking action under this  Agreement and the other Loan  Documents,
and to make such  investigation as it deems necessary to inform itself as to the
business,   operations,    property,   financial   and   other   condition   and
creditworthiness  of the  Borrowers.  Except  for  notices,  reports  and  other
documents  expressly  required  to be  furnished  to the  Lenders  by the  Agent
hereunder,  the Agent shall not have any duty or  responsibility  to provide any
Lender with any credit or other information concerning the business, operations,

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property,  condition (financial or otherwise),  prospects or creditworthiness of
the  Borrowers  which  may come into the  possession  of the Agent or any of its
officers, directors, employees, agents, attorneys-in-fact or Affiliates.

                  17.7 Indemnification. The Lenders agree to indemnify the Agent
in its  capacity  as such (to the extent the Company is  obligated  and fails to
make reimbursement in respect thereof and without limiting the obligation of the
Company to do so), ratably according to their respective Commitment  Percentages
in effect on the date on which indemnification is sought (or, to the extent that
the  relevant  Commitments  have  then  been  terminated,   according  to  their
respective   Commitment   Percentages   thereof   immediately   prior   to  such
termination),  from and against any and all  liabilities,  obligations,  losses,
damages, penalties,  actions, judgments, suits, costs, expenses or disbursements
of any kind whatsoever which may at any time (including,  without limitation, at
any time  following  the  payment of the Loans) be imposed  on,  incurred  by or
asserted  against  the  Agent in any way  relating  to or  arising  out of,  the
Commitments,  this  Agreement,  any of the other Loan Documents or any documents
contemplated   by  or  referred  to  herein  or  therein  or  the   transactions
contemplated hereby or thereby or any action taken or omitted by the Agent under
or in  connection  with any of the  foregoing;  provided that no Lender shall be
liable for the payment of any portion of such liabilities,  obligations, losses,
damages, penalties,  actions, judgments, suits, costs, expenses or disbursements
resulting  solely from the Agent's gross negligence or willful  misconduct.  The
agreements  in this  subsection  shall  survive the payment of the Loans and all
other amounts payable hereunder.

                  17.8  Agent in Its  Individual  Capacity.  To the  extent  not
otherwise  prohibited by the terms hereof (including  Section 14), the Agent and
its Affiliates may make loans to, accept  deposits from and generally  engage in
any kind of business with the Company and its  Subsidiaries  as though the Agent
were not the Agent hereunder and under the other Loan Documents. With respect to
the Loans  made by it,  and with  respect  to any  Letter  of  Credit  issued or
participated  in by it, the Agent  shall have the same  rights and powers  under
this  Agreement and the other Loan  Documents as any Lender and may exercise the
same as though it were not the Agent, and the terms "Lender" and "Lenders" shall
include the Agent in its individual capacity.

                  17.9  Successor  Agent.  The Agent may resign as Agent upon 10
days'  notice to the  Lenders.  If the Agent  shall  resign as Agent  under this
Agreement and the other Loan Documents,  then the Required Lenders shall appoint
from among the Lenders a successor agent for the Lenders,  which successor agent
(provided that it shall have been approved by the Company), shall succeed to the
rights,  powers  and  duties  of  the  Agent  hereunder.   Effective  upon  such
appointment and approval,  the term "Agent" shall mean such successor agent, and
the former  Agent's  rights,  powers and  duties as Agent  shall be  terminated,
without any other or further act or deed on the part of such former Agent or any
of the parties to this Agreement or any holders of the Loans. After any retiring
Agent's  resignation as Agent,  the provisions of this Section 17 shall inure to
its  benefit as to any  actions  taken or omitted to be taken by it while it was
Agent under this Agreement and the other Loan Documents.

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                            SECTION 18. MISCELLANEOUS

                  18.1  Amendments  and Waivers.  Neither this Agreement nor any
other Loan Document nor any terms hereof or thereof may be amended, supplemented
or modified  except in accordance  with the provisions of this  subsection.  The
Required Lenders may, or, with the written consent of the Required Lenders,  the
Agent may, from time to time,  (a) enter into with the Company (on behalf of the
Borrowers) written  amendments,  supplements or modifications  hereto and to the
other Loan  Documents for the purpose of adding any provisions to this Agreement
or the other Loan  Documents or changing in any manner the rights of the Lenders
or of the  Borrowers  hereunder or  thereunder  or (b) waive,  on such terms and
conditions as the Required Lenders or the Agent, as the case may be, may specify
in such instrument,  any of the requirements of this Agreement or the other Loan
Documents  or any  Default or Event of Default and its  consequences;  provided,
however,  that no such waiver and no such amendment,  supplement or modification
shall:

                  (i) reduce the amount or extend the scheduled date of maturity
         of any Loan or of payment of any  installment  thereof or the  ultimate
         expiration date of the Letter of Credit facility,  or reduce the stated
         rate of any interest or fee payable  hereunder or extend the  scheduled
         date of any payment thereof or increase the aggregate  amount or extend
         the expiration date of any Lender's  Commitment or amend the provisions
         of  subsection  10.9,  in each case  without the consent of each Lender
         directly affected thereby;

                  (ii)  (a)  amend,  modify  or  waive  any  provision  of  this
         subsection  or reduce the  percentage  specified in the  definition  of
         Required  Lenders,  or (b) consent to the assignment or transfer by the
         Company of any of its rights and  obligations  under this Agreement and
         the other Loan Documents or (c) release any  significant  Collateral or
         guarantee obligations,  in each case without the written consent of all
         the Lenders;

                  (iii) amend, modify or waive any mandatory prepayment owing to
         the Domestic  Lenders,  the Incremental  Lenders,  the UK Lenders,  the
         Secured  Supplemental  Lenders or the  Unsecured  Supplemental  Lenders
         without the written  consent of the Domestic  Lenders,  the Incremental
         Lenders, the UK Lenders, the Secured Supplemental Lenders or the
         Unsecured Supplemental Lenders, as the case may be;

                  (iv) amend, modify or waive any provision of Section 5 without
         the written  consent of the Domestic Swing Line Lender or any provision
         of Section 8 without the written consent of the UK Swing Line Lender;

                  (v) amend,  modify or waive any provision of Section 4 without
         the written consent of each Issuing Bank directly affected thereby;

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                  (vi)  amend, modify or waive any provision of Section 17
         without the written consent of the then Agent; or

                  (vii)  increase the principal  amount of the Loans and Letters
         of Credit  which  constitute  Primary  Obligations  (other than through
         borrowings  of Loans and  issuances  of  Letters  of  Credit  under the
         Domestic  Revolving  Credit  Commitments  and the UK  Revolving  Credit
         Commitments in effect on the  Supplemental  Closing Date),  without the
         written  consent  of  each  Secured   Supplemental   Lender  (it  being
         understood that nothing  contained in this clause (vii) shall be deemed
         to  restrict  the right of the Agent to adjust the  Domestic  Borrowing
         Base and the UK Borrowing Base pursuant to the authority granted in the
         definition of each such term contained in subsection 1.1 hereof).

Any such waiver and any such amendment,  supplement or modification  shall apply
equally to each of the  Lenders  and shall be binding  upon the  Borrowers,  the
Lenders,  the Agent and all  future  holders  of the  Loans.  In the case of any
waiver,  the  Borrowers,  the  Lenders  and the Agent shall be restored to their
former  positions and rights  hereunder and under the other Loan Documents,  and
any  Default  or Event of  Default  waived  shall be  deemed to be cured and not
continuing;  no such waiver shall extend to any  subsequent  or other Default or
Event of Default or impair any right consequent thereon.

                  The  Lenders   hereby   agree  that  the  Agent  may,  in  its
discretion,  waive the  provisions of subsection  12.2(f) with respect (and only
with respect) to the pledge of Capital Stock of any Foreign Subsidiary; provided
that the  Company  shall be  required  and  hereby  agrees to  comply  with such
provisions by no later than June 30, 1996 and that failure to so comply shall be
deemed an Event of Default hereunder.

                  18.2 Notices. All notices, requests and demands to or upon the
respective  parties  hereto to be effective  shall be in writing  (including  by
facsimile  transmission) and, unless otherwise expressly provided herein,  shall
be deemed to have been duly given or made (a) in the case of  delivery  by hand,
when  delivered,  (b) in the case of delivery by certified or  registered  mail,
five days after being  deposited in the mails,  postage  prepaid,  or (c) in the
case of  delivery  by  facsimile  transmission,  when sent and  receipt has been
confirmed,  addressed (y) as follows in the case of the Company, the UK Borrower
and the  Agent  and (z) as set  forth in  Schedule  II, in the case of the other
parties hereto, or (in each such case) to such other address as may be hereafter
notified by the respective parties hereto:

             The Company: Remington Products Company, L.L.C.
                          60 Main Street
                          Bridgeport, Connecticut  06604
                          Attention:  Al Castaldi
                          Fax:  203/332-4655

                          with a copy to:

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                          Attention:  Joel Bedol, Esq.
                          Fax:  203/366-7707

         The UK Borrower: Remington Consumer Products Limited
                          Watermans House
                          Watermans Court
                          Kingsbury Crescent
                          The Causeway
                          Staines
                          Middlesex TW18 3DA
                          England
                          Attention:  Chief Financial Officer
                          Fax:  011-44-1784-411412

             The Agent:   with respect to UK Loans and Incremental Sterling
                          Loans:

                          The Chase Manhattan Bank
                          Trinity Tower
                          9 Thomas More Street
                          London, England  E19YT
                          Attention:  Steve Clarke
                          Fax:  011-44-207-777-2360

                          with respect to other matters:

                          The Chase Manhattan Bank
                          270 Park Avenue
                          New York, New York  10017
                          Attention: Kathryn Duncan
                          Fax: 212/972-0009

                          in each case with a copy to:

                          The Chase Manhattan Bank Agency Services Group
                          140 East 45th Street
                          New York, New York  10017
                          Attention: Janet Belden
                          Fax: 212/552-5658

provided that any notice,  request or demand to or upon the Agent or the Lenders
pursuant to subsection 2.2, 3.2, 4.2, 5.1(a), 6.2, 7.2, 8.1(a), 9.2, 10.1, 10.2,
10.3 or 10.9 shall not be effective until received.

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                  18.3 No Waiver;  Cumulative  Remedies.  No failure to exercise
and no delay in exercising,  on the part of the Agent or any Lender,  any right,
remedy,  power or privilege  hereunder or under the other Loan  Documents  shall
operate as a waiver  thereof;  nor shall any single or partial  exercise  of any
right,  remedy,  power or  privilege  hereunder  preclude  any other or  further
exercise thereof or the exercise of any other right, remedy, power or privilege.
The rights,  remedies,  powers and privileges herein provided are cumulative and
not exclusive of any rights, remedies, powers and privileges provided by law.

                  18.4  Survival  of   Representations   and   Warranties.   All
representations  and warranties made hereunder,  in the other Loan Documents and
in any  document,  certificate  or  statement  delivered  pursuant  hereto or in
connection  herewith  shall survive the execution and delivery of this Agreement
and the making of the Loans hereunder.

                  18.5 Payment of Expenses and Taxes.  The Company agrees (a) to
pay or reimburse the Agent for all its out-of-pocket costs and expenses incurred
in  connection  with the  development,  preparation  and  execution  of, and any
amendment,  supplement  or  modification  to, this  Agreement and the other Loan
Documents and any other documents prepared in connection  herewith or therewith,
and the consummation and administration of the transactions  contemplated hereby
and  thereby,   including,   without   limitation,   the  reasonable   fees  and
disbursements  of counsel to the Agent,  (b) to pay or reimburse each Lender and
the Agent  for all its  costs  and  expenses  incurred  in  connection  with the
enforcement or preservation  of any rights under this Agreement,  the other Loan
Documents and any such other documents,  including, without limitation, the fees
and  disbursements of counsel to each Lender and of counsel to the Agent, (c) to
pay,  indemnify,  and hold each Lender and the Agent  harmless  from any and all
recording  and  filing  fees and any and all  liabilities  with  respect  to, or
resulting from any delay in paying, stamp, excise and other taxes, if any, which
may be payable or determined to be payable in connection  with the execution and
delivery  of,  or  consummation  or  administration  of any of the  transactions
contemplated by, or any amendment,  supplement or modification of, or any waiver
or consent under or in respect of, this Agreement,  the other Loan Documents and
any such other documents,  and (d) to pay,  indemnify,  and hold each Lender and
the Agent harmless from and against any and all other liabilities,  obligations,
losses,  damages,  penalties,  actions,  judgments,  suits,  costs,  expenses or
disbursements  of any kind or nature  whatsoever  with respect to the execution,
delivery,  enforcement,  performance and  administration of this Agreement,  the
other  Loan  Documents  and  any  such  other  documents,   including,   without
limitation,  any of the foregoing  relating to the  violation of,  noncompliance
with or liability  under any  Environmental  Law applicable to the operations of
the Company, any of its Subsidiaries or any of the Properties (all the foregoing
in this paragraph (d), collectively,  the "indemnified  liabilities"),  provided
that the Company shall have no  obligation  hereunder to the Agent or any Lender
with respect to indemnified liabilities arising solely from the gross negligence
or willful  misconduct of the Agent or any such Lender.  The  agreements in this
subsection  shall survive  repayment of the Loans and all other amounts  payable
hereunder.

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<PAGE>

                  18.6 Successors and Assigns;  Participations  and Assignments.
(a)  This  Agreement  shall be  binding  upon and  inure to the  benefit  of the
Borrowers,  the Lenders, the Agent and their respective  successors and assigns,
except that no Borrower may assign or transfer any of its rights or  obligations
under this Agreement without the prior written consent of each Lender.

                  (b) Each Lender may, in the ordinary  course of its commercial
banking  business and in accordance with applicable law, at any time sell to one
or more banks or other entities ("Participants")  participating interests in any
Loan owing to such Lender,  any  Commitment of such Lender or any other interest
of such Lender hereunder and under the other Loan Documents. In the event of any
such  sale by a  Lender  of a  participating  interest  to a  Participant,  such
Lender's obligations under this Agreement to the other parties to this Agreement
shall remain  unchanged,  such Lender shall remain  solely  responsible  for the
performance  thereof,  such Lender  shall remain the holder of any such Loan for
all  purposes  under  this  Agreement  and the  other  Loan  Documents,  and the
Borrowers  and the Agent shall  continue to deal solely and  directly  with such
Lender in  connection  with such  Lender's  rights  and  obligations  under this
Agreement and the other Loan Documents. No Lender shall be entitled to create in
favor of any Participant,  in the participation agreement pursuant to which such
Participant's participating interest shall be created or otherwise, any right to
vote on,  consent to or approve  any matter  relating to this  Agreement  or any
other Loan  Document  except for those  specified in clauses (i) and (ii) of the
proviso to subsection  18.1.  Each Borrower  agrees that if amounts  outstanding
under this  Agreement  are due or unpaid,  or shall have been  declared or shall
have become due and payable  upon the  occurrence  of an Event of Default,  each
Participant  in any Loans owing by it or Commitments  available to it shall,  to
the maximum extent  permitted by applicable  law, be deemed to have the right of
setoff in respect of its  participating  interest  in amounts  owing  under this
Agreement to the same extent as if the amount of its participating interest were
owing  directly  to it as a Lender  under  this  Agreement,  provided  that,  in
purchasing such participating interest, such Participant shall be deemed to have
agreed to share with the Lenders the proceeds  thereof as provided in subsection
18.7 as fully as if it were a Lender  hereunder.  The  Company  also agrees that
each Participant shall be entitled to the benefits of subsections  10.11,  10.12
and 10.13,  with respect to its  participation  in the Commitments and the Loans
outstanding from time to time,  provided,  that no Participant shall be entitled
to  receive  any  greater  amount  pursuant  to any  such  subsection  than  the
transferor  Lender would have been  entitled to receive in respect of the amount
of the  participation  transferred by such transferor Lender to such Participant
had no such transfer occurred.

                  (c) Any Lender may, in the ordinary  course of its  commercial
banking  business and in accordance  with  applicable  law, at any time and from
time to time assign to any Lender or any affiliate  thereof or, with the consent
of the Company (on its own behalf  and, to the extent  applicable,  as agent for
any  affected  Borrower)  and  the  Agent  (which  in  each  case  shall  not be
unreasonably  withheld),  to an  additional  bank or financial  institution  (an
"Assignee") all or any part of its rights and  obligations  under this Agreement
and  the  other  Loan  Documents  pursuant  to  an  Assignment  and  Acceptance,
substantially  in the  form  of  Exhibit  H,  executed  by such  Assignee,  such

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assigning  Lender (and,  in the case of an Assignee that is not then a Lender or
an affiliate  thereof,  by the Company and the Agent) and delivered to the Agent
for its acceptance and recording in the Register,  provided that, in the case of
any such  assignment  to any Lender or any affiliate  thereof,  or an additional
bank or financial  institution,  the aggregate  principal  amount of Loans,  L/C
Obligations and Commitments  being assigned is not less than $5,000,000 (or such
lesser  amount as may be  agreed to by the  Company  and the  Agent).  Upon such
execution, delivery, acceptance and recording, from and after the effective date
determined  pursuant  to  such  Assignment  and  Acceptance,  (x)  the  Assignee
thereunder  shall  be a  party  hereto  and,  to the  extent  provided  in  such
Assignment and Acceptance, have the rights and obligations of a Lender hereunder
with a Commitment as set forth therein,  and (y) the assigning Lender thereunder
shall, to the extent  provided in such  Assignment and  Acceptance,  be released
from its obligations under this Agreement (and, in the case of an Assignment and
Acceptance covering all or the remaining portion of an assigning Lender's rights
and obligations under this Agreement,  such assigning Lender shall cease to be a
party hereto). Notwithstanding any provision of this paragraph (c) and paragraph
(e) of this subsection,  the consent of the Company shall not be required,  and,
unless  requested by the Assignee and/or the assigning  Lender,  new Notes shall
not be required to be executed and delivered by any Borrower, for any assignment
which occurs at any time when any of the events  described in subsection  16(b),
(c), (g) or (h) shall have occurred and be continuing.  Notwithstanding anything
to the contrary contained herein, (x) any assignment by a Domestic Lender of any
Commitment or Loan held by it shall be  accompanied by an assignment to the same
Assignee of a ratable share of each other  Commitment and Loan which it holds as
a Domestic  Lender,  (y) any assignment by a UK Lender of any Commitment or Loan
held by it shall be  accompanied  by an  assignment  to the same  Assignee  of a
ratable share of each other  Commitment  and Loan which it holds as a UK Lender,
(z) any assignment by an Incremental Lender of any Commitment or Loan held by it
shall be accompanied by an assignment to the same Assignee of a ratable share of
each other  Commitment  and Loan which it holds as an  Incremental  Lender;  for
purposes of  clarification,  it is understood  and agreed that any  Supplemental
Lender who holds both  Secured  Supplemental  Loans and  Unsecured  Supplemental
Loans need not assign such Loans ratably.

                  (d) The Agent, on behalf of the Company, shall maintain at the
address of the Agent  referred to in subsection  18.2 a copy of each  Assignment
and  Acceptance  delivered  to it  and  a  register  (the  "Register")  for  the
recordation  of the names and addresses of the Lenders and the  Commitments  of,
and principal  amounts of the Loans owing to, each Lender from time to time. The
entries in the Register shall be conclusive,  in the absence of manifest  error,
and the  Borrowers,  the Agent and the Lenders may (and, in the case of any Loan
or other obligation  hereunder not evidenced by a Note, shall) treat each Person
whose  name  is  recorded  in the  Register  as the  owner  of a Loan  or  other
obligation hereunder as the owner thereof for all purposes of this Agreement and
the other  Loan  Documents,  notwithstanding  any  notice to the  contrary.  Any
assignment  of any Loan or other  obligation  hereunder  not evidenced by a Note
shall be effective only upon appropriate entries with respect thereto being made
in the Register.  The Register shall be available for inspection by any Borrower
or any Lender at any reasonable time and from time to time upon reasonable prior
notice.

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<PAGE>

                  (e) Upon its receipt of an Assignment and Acceptance  executed
by an assigning  Lender and an Assignee (and, in the case of an Assignee that is
not then a  Lender  or an  affiliate  thereof,  by the  Company  and the  Agent)
together  with  payment to the Agent of a  registration  and  processing  fee of
$3,500,  the Agent shall (i) promptly  accept such Assignment and Acceptance and
(ii) on the effective date  determined  pursuant  thereto record the information
contained  therein  in the  Register  and give  notice  of such  acceptance  and
recordation to the Lenders, the Company and (to the extent applicable) any other
affected Borrowers.

                  (f) Each  Borrower  authorizes  each Lender to disclose to any
Participant or Assignee (each, a "Transferee")  and any prospective  Transferee,
subject to the provisions of subsection 18.17, any and all financial information
in such Lender's  possession  concerning such Borrower and its Affiliates  which
has been  delivered to such Lender by or on behalf of any  Borrower  pursuant to
this Agreement or which has been delivered to such Lender by or on behalf of any
Borrower in connection with such Lender's credit  evaluation of any Borrower and
its Affiliates prior to becoming a party to this Agreement.

                  (g) For  avoidance  of doubt,  the  parties to this  Agreement
acknowledge  that the provisions of this  subsection  concerning  assignments of
Loans and Notes relate only to absolute  assignments and that such provisions do
not  prohibit  assignments  creating  security  interests,   including,  without
limitation,  any  pledge  or  assignment  by a Lender of any Loan or Note to any
Federal Reserve Bank in accordance with applicable law.

                  18.7  Adjustments;  Set-off.  (a) On the date of occurrence of
any Event of Default  specified in  subsection  16(g) or (h), each Lender (other
than the  Supplemental  Lenders)  shall be deemed  (solely as an  inter-creditor
matter and without any obligation on the part of any Borrower) to have purchased
an  interest  in the  obligations  owing to each other  Lender  (other  than the
Supplemental  Lenders) (and, to the extent  necessary after giving effect to any
actual recoveries on such  obligations,  shall actually fund such purchase) such
that, after giving effect to all such purchases or deemed  purchases,  each such
Lender is owed  (directly  or through  such  purchase  or deemed  purchase)  its
Commitment  Percentage  (calculated  with  respect  to all  Commitments)  of the
Domestic  Term Loans,  the UK Term Loans,  the Domestic  Revolving  Credit Loans
(including,  without  limitation,  reimbursement  obligations  in respect of any
outstanding  Domestic Swing Line Loans), the Incremental Loans, the UK Revolving
Credit  Loans  (including,  without  limitation,  reimbursement  obligations  in
respect of any  outstanding UK Swing Line Loans),  the L/C  Obligations  and all
amounts owing in respect thereof,  but in the case of Domestic Swing Line Loans,
UK Swing Line Loans and L/C  Obligations  excluding  those with respect to which
such  Lender is not  required  to make  Domestic  Revolving  Credit  Loans or UK
Revolving Credit Loans, as the case may be, or purchase participating  interests
pursuant  to  subsection  5.1(f),  8.1(f) or 4.4(d),  respectively.  Each Lender
hereby  acknowledges and agrees that its agreement  contained in this subsection
18.7(a) shall be irrevocable and unconditional.

                  (b) If any Lender (a  "benefitted  Lender")  shall at any time
receive  any  payment  of all or  part  of any  of its  Loans  or  Reimbursement
Obligations owing to it under any Commitment, or interest thereon, pursuant to a

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guarantee or otherwise,  or receive any collateral in respect  thereof  (whether
voluntarily or involuntarily,  by set-off or otherwise), in a greater proportion
than any such payment to and collateral received by any other Lender, if any, in
respect of such other Lender's Loans or Reimbursement  Obligations,  as the case
may be, of the same  Facility  owing to it under  such  Commitment  or  interest
thereon,  such benefitted  Lender shall purchase for cash from the other Lenders
such  portion  of each  such  other  Lender's  similar  Loans  or  Reimbursement
Obligations of the same  Facility,  or shall provide such other Lenders with the
benefits of any such collateral,  or the proceeds thereof, as shall be necessary
to cause such benefitted  Lender to share the excess payment or benefits of such
collateral  or  proceeds  ratably  with  each of the  Lenders  which  hold  such
Commitment of the same Facility;  provided,  however, that if all or any portion
of such excess payment or benefits is thereafter  recovered from such benefitted
Lender,  such purchase  shall be rescinded,  and the purchase price and benefits
returned,  to the extent of such recovery,  but without interest.  Each Borrower
agrees that each Lender so  purchasing  a portion of another  Lender's  Loans or
Reimbursement Obligations may exercise all rights of payment (including, without
limitation,  rights of set-off) with respect to such portion as fully as if such
purchasing Lender were the direct holder of such portion.

                  (c) In  addition  to any rights and  remedies  of the  Lenders
provided by law,  each Lender shall have the right,  without prior notice to any
Borrower,  any such notice being expressly waived by the Borrowers to the extent
permitted by  applicable  law,  upon any amount  becoming due and payable by any
Borrower  hereunder  (whether  at  the  stated  maturity,   by  acceleration  or
otherwise) to set-off and  appropriate and apply against such amount any and all
deposits  (general or special,  time or demand,  provisional  or final),  in any
currency,  and any other credits,  indebtedness or claims,  in any currency,  in
each case  whether  direct or  indirect,  absolute  or  contingent,  matured  or
unmatured,  at any time  held or owing by such  Lender  or any  branch or agency
thereof to or for the credit or the account of such Borrower. Each Lender agrees
promptly to notify the  affected  Borrower  and the Agent after any such set-off
and  application  made by such  Lender,  provided  that the failure to give such
notice shall not affect the validity of such set-off and application.

                  18.8  Mortgaged   Property  Casualty  and  Condemnation.   (a)
Notwithstanding any other provision of this Agreement or the Security Documents,
the Agent is  authorized,  at its option (for the benefit of the Lenders,  other
than the Unsecured  Supplemental Lenders), to collect and receive, to the extent
payable  to the  Company or any of its  Subsidiaries,  all  insurance  proceeds,
damages,  claims and rights of action under any insurance  policies with respect
to any  casualty  or other  insured  damage  ("Casualty")  to any portion of any
Mortgaged Property  (collectively,  "Insurance Proceeds"),  unless the amount of
the related Insurance  Proceeds is less than $10,000,000 and an Event of Default
shall not have  occurred  and be  continuing.  The Company  agrees to notify the
Agent, in writing,  promptly after the Company or any Subsidiary  obtains notice
or  knowledge of any  Casualty to a Mortgaged  Property,  which notice shall set
forth a description  of such Casualty and the Company's  good faith  estimate of
the amount of related  damages.  The Company  agrees,  subject to the  foregoing
limitations,  to, and to cause each Subsidiary to, endorse and transfer or cause

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to be endorsed or transferred  any Insurance  Proceeds  received by it or any of
its Subsidiaries to the Agent.

     (b) The Company will notify the Agent immediately upon obtaining  knowledge
of the  institution  of any action or proceeding for the taking of any Mortgaged
Property,  or any part thereof or interest  therein,  for public or quasi-public
use under the power of eminent  domain,  by reason of any public  improvement or
condemnation  proceeding,  or  in  any  other  manner  (a  "Condemnation").   No
settlement  or  compromise  of any claim in  connection  with any such action or
proceeding  shall be made without the consent of the Agent,  which consent shall
not be unreasonably  withheld.  The Agent is authorized,  at its option (for the
benefit of the  Lenders,  other than the  Unsecured  Supplemental  Lenders),  to
collect and receive all  proceeds of any such  Condemnation  (in each case,  the
"Condemnation  Proceeds") unless the amount of the Condemnation Proceeds is less
than  $10,000,000  and an Event  of  Default  shall  not  have  occurred  and be
continuing.  The Company  agrees to execute or cause to be executed such further
assignments of any Condemnation Proceeds required to be received by the Agent as
the Agent may reasonably require.

     (c) In the  event  of a  Condemnation  of all or  substantially  all of any
Mortgaged  Property  (which  determination  shall  be made by the  Agent  in its
reasonable  discretion),  unless the Company  shall have  notified  the Agent in
writing promptly after such  Condemnation that it intends to replace the related
Mortgaged  Property  (and no Default or Event of Default shall have occurred and
be continuing at the time of such election), the Agent may deem such event to be
a Prepayment  Event,  and shall apply the  Condemnation  Proceeds  received as a
result of such Condemnation  (less the reasonable costs, if any, incurred by the
Agent or the Company in the recovery of such  Condemnation  Proceeds,  including
reasonable  attorneys' fees, other charges and disbursements (the Lenders having
agreed to  reimburse  the Company  from such  Condemnation  Proceeds  such costs
incurred by the Company)) to prepay obligations outstanding under this Agreement
to the extent required under  subsection  10.2, with any remaining  Condemnation
Proceeds being returned to the Company.  If the Company shall elect to replace a
Mortgaged Property as contemplated above, (i) the replacement  property shall be
of utility  comparable to that of the replaced  Mortgaged  Property and (ii) the
insufficiency of any  Condemnation  Proceeds to defray the entire expense of the
related location, acquisition and replacement of such replacement property shall
in no way relieve the Company of its obligation to complete the  construction or
acquisition  of any  replacement  property if the  Company  shall have made such
election and shall have acquired the related real property.  Any condemnation of
substantially  all  of  a  Mortgaged   Property  is  referred  to  herein  as  a
"`substantially all' Condemnation".

     (d) In the event of any Condemnation of the Mortgaged Property, or any part
thereof (other than a total or  "substantially  all"  Condemnation  described in
paragraph (c) above and subject to the  provisions of paragraph (f) below),  the
Agent  shall apply the  Condemnation  Proceeds  (to the extent it receives  such
proceeds),  first,  in the case of a  partial  Condemnation,  to the  repair  or
restoration  of any  integrated  structure  subject  to such  Condemnation  and,

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second,  shall  apply the  remainder  of such  Condemnation  Proceeds  (less the
reasonable  costs, if any, incurred by the Agent and the Company in the recovery
of such Condemnation Proceeds,  including reasonable attorneys' fees (the Lender
having  agreed to reimburse  the Company from such  Condemnation  Proceeds  such
costs  incurred by the Company)) to prepay  obligations  outstanding  under this
Agreement to the extent  required  under  subsection  10.2,  with any  remaining
Condemnation Proceeds being returned to the Company.

     (e) In the  event of any  Casualty  of the  improvements  of any  Mortgaged
Property  and so long as no  Default  or Event of Default  has  occurred  and is
continuing, the Company shall have the option to either:

                           (i)  restore  the  Mortgaged  Property to a condition
         substantially  similar  to its  condition  immediately  prior  to  such
         Casualty and to invest the balance,  if any, of any Insurance  Proceeds
         in equipment,  vehicles or other assets used in the Company's principal
         lines of business within 180 days after the receipt thereof,  provided,
         however, that the Company, pending such reinvestment, promptly deposits
         such excess Insurance Proceeds in a cash collateral account established
         with  (or  otherwise  reasonably  satisfactory  to) the  Agent  for the
         benefit of the Lenders (other than the Unsecured Supplemental Lenders),
         or

                           (ii) direct the Agent to apply the related  Insurance
         Proceeds to prepay obligations  outstanding under this Agreement to the
         extent required under  subsection  10.2,  with any remaining  Insurance
         Proceeds being returned to the Company.

It is understood that any excess  Insurance  Proceeds that are not reinvested in
the Company's  existing lines of business as contemplated  above will be applied
to prepay  obligations  outstanding  under this Agreement to the extent required
under subsection 10.2.

                  If  required  to do so, the  Company  shall make the  election
contemplated  by the  immediately  preceding  paragraph by  notifying  the Agent
promptly  after the  later to occur of (A) 30 days  after  the  Company  and its
insurance  carrier  reach a final  determination  of the amount of any Insurance
Proceeds and (B) 60 days after the  occurrence of the  Casualty.  If the Company
shall be  required  or shall  elect  to  restore  the  Mortgaged  Property,  the
insufficiency of any Insurance  Proceeds or Condemnation  Proceeds to defray the
entire expense of such  restoration  shall in no way relieve the Company of such
obligation  to so restore if it is so  required or once such  election  has been
made.  In the event the Company shall be required to restore or shall notify the
Agent of its election to restore,  the Company shall diligently and continuously
prosecute  the  restoration  of the  Mortgaged  Property to  completion.  In the
circumstance where the Company shall be required to restore or shall so elect to
restore and no Event of Default has occurred and is continuing the Company shall
not be  required  to comply  with the  requirements  of  paragraph  (f) below in
connection with such restoration  (except as required by clauses  (f)(ii)(A) and
(B)), so long as the cost of such  restoration  shall be less than $500,000.  In
the event of a Casualty  where the Company is required to make the  election set
forth  above  and the  Company  either  shall  fail to  notify  the Agent of its
election  within the period set forth  above or shall  elect not to restore  the

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Mortgaged  Property,  the Agent shall (after being reimbursed for all reasonable
costs of recovery of such Insurance  Proceeds  including  reasonable  attorneys'
fees and after reimbursing the Company for all such reasonable costs incurred by
the Company) apply such  Insurance  Proceeds to prepay  obligations  outstanding
under this Agreement to the extent required under  subsection 10.2. In addition,
upon such  prepayment,  the Company  shall be obligated  to place the  remaining
portion, if any, of the Mortgaged Property in a safe condition that is otherwise
in compliance with the requirements of applicable  Governmental  Authorities and
the provisions of this Agreement and the Company Mortgage.

     (f) Except as otherwise  specifically provided in this subsection 18.8, all
Insurance Proceeds and all Condemnation  Proceeds recovered by the Agent (i) are
to be applied to the  restoration of the applicable  Mortgaged  Property (or, if
permitted  in the  event  of a total  or  "substantially  all"  Condemnation  as
contemplated  in  paragraph  (c)  above,   to  the  location,   acquisition  and
construction of a replacement for the applicable  Mortgaged  Property) (less the
reasonable  cost,  if any, to the Agent of such  recovery and of paying out such
proceeds,  including  reasonable (x) attorneys'  fees, (y) other charges and (z)
disbursements  and costs  allocable to inspecting the Work (as defined  below)),
(ii) shall be applied by the Agent to the  payment of the cost of  restoring  or
replacing  the  Mortgaged  Property  so  damaged,  destroyed  or taken or of the
portion or  portions of the  Mortgaged  Property  not so taken (the  "Work") and
(iii)  shall be paid out from time to time to the  Company  as and to the extent
the Work  (including  the location and  acquisition  of any  replacement  of any
Mortgaged  Property)  progresses  (as  certified by the Company) for the payment
thereof, but subject to each of the following conditions:

                           (A)  the   Company   must   promptly   commence   the
         restoration  process  or  the  location,  acquisition  and  replacement
         process (in the case of a total or "substantially all" Condemnation) in
         connection with the Mortgaged Property;

                           (B) upon completion  thereof,  the improvements shall
         (I) be in compliance with all  requirements of applicable  Governmental
         Authorities such that all  representations or warranties of the Company
         relating to the compliance of such Mortgaged  Property with  applicable
         laws, rules or regulations in this Agreement or the Security  Documents
         will be correct in all respects and (II) be at least equal in value and
         general  utility  to the  improvements  that  were  on  such  Mortgaged
         Property  (or  that  were  on the  Mortgaged  Property  that  has  been
         replaced, if applicable) prior to the Casualty or Condemnation,  and in
         the case of a Condemnation, subject to the affect of such Condemnation;

                           (C)  there shall be no Default or Event of Default
         that has occurred and is continuing; and

                           (D) after  commencing  the Work,  the  Company  shall
         continue  to  perform  the  Work   diligently  and  in  good  faith  to
         completion.

                                      142
<PAGE>

Upon  completion  of the Work and  payment  in full  therefor,  the  Agent  will
disburse  to the Company the amount of any  Insurance  Proceeds or  Condemnation
Proceeds then or thereafter in the hands of the Agent on account of the Casualty
or  Condemnation  that  necessitated  such  Work  to be  applied  (x) to  prepay
obligations  outstanding  under  this  Agreement  to the extent  required  under
subsection  10.2,  with any excess being  returned to the Company,  or (y) to be
reinvested in the Company's  principal  lines of business  within 180 days after
the  receipt  thereof;  provided,   however,  that  the  Company,  pending  such
reinvestment,  promptly  deposits  such  amounts  in a cash  collateral  account
established  with the Agent  for the  benefit  of the  Lenders  (other  than the
Unsecured Supplemental Lenders).

     (g)  Notwithstanding  any other  provisions of this subsection 18.8, if the
Company shall have elected to replace a Mortgaged  Property in connection with a
total or  "substantially  all"  Condemnation  as  contemplated  in paragraph (c)
above, all Condemnation Proceeds held by the Agent in connection therewith shall
be applied to prepay obligations  outstanding under this Agreement to the extent
required  under  subsection  10.2 if (i) the Company  notifies the Agent that it
does not intend to replace the related  Mortgaged  Property,  (ii) an officer of
the Company  shall not have  notified  the Agent in writing that the Company has
acquired or has entered  into a binding  contract to acquire  land upon which it
will  construct  the  replacement  property  within six months after the related
Condemnation  or (iii) the  Company  shall have not  notified  the Agent and the
Agent in writing that it has begun  construction of the  replacement  structures
within one year after the  related  Condemnation.  Any funds not  required to be
applied in accordance with subsection 10.2 shall be returned to the Company.

     (h) Nothing in this  subsection  18.8 shall prevent the Agent from applying
at any time all or any part of the Insurance  Proceeds or Condemnation  Proceeds
to the curing of any Event of Default under this Agreement.

                  18.9  Matters  Relating  to  Certain  Borrowers.  (a)  The  UK
Borrower  shall at all times  maintain in New York,  New York a Person acting as
agent to receive on its behalf and on behalf of its respective  property service
of copies of the summons and complaint and any other process which may be served
in any action or  proceeding  described in  subsection  18.14(a) in any New York
State or Federal  court  described in  subsection  18.14(a).  Such process agent
initially shall be Allen Lipson,  Esq. with an address at c/o Remington Products
Company, L.L.C., 60 Main Street, Bridgeport,  Connecticut 06604; the UK Borrower
shall provide  prompt  written notice to the Agent of any change in such process
agent or any change of address thereof.

                  (b) The  obligations  of the Company under any Note due to any
party hereto or any other  amount owing  hereunder  shall,  notwithstanding  any
judgment  in a  currency  (the  "judgment  currency")  other  than  Dollars,  be
discharged only to the extent that on the Business Day following receipt by such
party or such  holder (as the case may be) of any sum  adjudged  to be so due in
the  judgment  currency  such  party or such  holder (as the case may be) may in
accordance  with normal banking  procedures  purchase  Dollars with the judgment
currency;  if the amount of Dollars so purchased is less than the sum originally
due to such party or such  holder (as the case may be) in  Dollars,  the Company

                                      143
<PAGE>

agrees,  as a separate  obligation and  notwithstanding  any such  judgment,  to
indemnify  such party of such holder (as the case may be) against such loss, and
if the amount of Dollars so  purchased  exceeds  the sum  originally  due to any
party to this  Agreement or any holder of Notes (as the case may be), such party
or such holder (as the case may be) agrees to remit to the Company such excess.

                  (c) The  obligations  of the UK Borrower under any Note due to
any party hereto or any other amount owing hereunder shall,  notwithstanding any
judgment in a currency (the "judgment currency") other than Pounds Sterling,  be
discharged only to the extent that on the Business Day following receipt by such
party or such  holder (as the case may be) of any sum  adjudged  to be so due in
the  judgment  currency  such  party or such  holder (as the case may be) may in
accordance  with normal banking  procedures  purchase  Pounds  Sterling with the
judgment  currency;  if the amount of Pounds  Sterling so purchased is less than
the sum  originally  due to such  party or such  holder  (as the case may be) in
Pounds  Sterling,   the  UK  Borrower  agrees,  as  a  separate  obligation  and
notwithstanding  any such  judgment,  to indemnify such party of such holder (as
the case may be)  against  such loss,  and if the amount of Pounds  Sterling  so
purchased  exceeds the sum  originally due to any party to this Agreement or any
holder of Notes (as the case may be), such party or such holder (as the case may
be) agrees to remit to the UK Borrower such excess.

                  (d) Notwithstanding anything to the contrary contained herein,
the UK Borrower's  liability  hereunder and under the other Loan Documents shall
be limited to the UK Loans, interest thereon and fees and other amounts directly
relating  thereto.  The UK  Borrower  shall have no  obligation  hereunder  with
respect to the payment of any amounts  owing with respect to the Domestic  Loans
or the Letters of Credit.

                  18.10  Counterparts.  This Agreement may be executed by one or
more of the parties to this  Agreement  on any number of  separate  counterparts
(including  by  facsimile  transmission),  and  all of said  counterparts  taken
together shall be deemed to constitute one and the same instrument. A set of the
copies of this  Agreement  signed by all the  parties  shall be lodged  with the
Company and the Agent.

                  18.11  Severability.  Any provision of this Agreement which is
prohibited or unenforceable in any jurisdiction  shall, as to such jurisdiction,
be ineffective to the extent of such  prohibition  or  unenforceability  without
invalidating  the  remaining  provisions  hereof,  and any such  prohibition  or
unenforceability   in  any   jurisdiction   shall  not   invalidate   or  render
unenforceable such provision in any other jurisdiction.

                  18.12 Integration. This Agreement and the other Loan Documents
represent the agreement of the Borrowers, the Agent and the Lenders with respect
to  the  subject  matter  hereof,  and  there  are  no  promises,  undertakings,
representations  or  warranties  by the Agent or any Lender  relative to subject
matter hereof not expressly set forth or referred to herein or in the other Loan
Documents.

                                      144
<PAGE>

                  18.13  GOVERNING  LAW.  THIS  AGREEMENT  AND  THE  RIGHTS  AND
OBLIGATIONS  OF THE PARTIES  HEREUNDER  SHALL BE GOVERNED BY, AND  CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

                  18.14  Submission To Jurisdiction; Waivers.  Each Borrower
         hereby irrevocably and unconditionally:

                  (a) submits for itself and its property in any legal action or
         proceeding  relating to this  Agreement and the other Loan Documents to
         which  it is a  party,  or  for  recognition  and  enforcement  of  any
         judgement in respect thereof, to the non-exclusive 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, and appellate courts
         from  any  thereof  and,  in  the  case  of  the  UK  Borrower,  to the
         jurisdiction of the English courts;

                  (b) consents that any such action or proceeding may be brought
         in such courts and waives any  objection  that it may now 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 Borrower at its address set forth in subsection  18.2
         or at such other  address of which the Agent  shall have been  notified
         pursuant thereto;

                  (d)  agrees  that  nothing  herein  shall  affect the right to
         effect service of process in any other manner permitted by law or shall
         limit the right to sue in any other jurisdiction; and

                  (e) waives,  to the maximum  extent not prohibited by law, any
         right it may have to claim or recover in any legal action or proceeding
         referred to in this  subsection  any  special,  exemplary,  punitive or
         consequential damages.

                  18.15 Acknowledgements.Each Borrower hereby acknowledges that:

                  (a)  it has been advised by counsel in the negotiation,
         execution and delivery of this Agreement and the other Loan Documents;

                  (b)  neither  the  Agent  nor any  Lender  has  any  fiduciary
         relationship  with  or  duty  to  any  Borrower  arising  out  of or in
         connection with this Agreement or any of the other Loan Documents,  and
         the  relationship  between the Agent and the Lenders,  on one hand, and

                                      145
<PAGE>

         any Borrower, on the other hand, in connection herewith or therewith is
         solely that of debtor and creditor; and

                  (c) no joint  venture is  created  hereby or by the other Loan
         Documents   or   otherwise   exists  by  virtue  of  the   transactions
         contemplated  hereby  among the Lenders or among any  Borrower  and the
         Lenders.

                  18.16 WAIVERS OF JURY TRIAL.  TO THE FULLEST EXTENT  PERMITTED
BY APPLICABLE LAW, THE BORROWERS,  THE AGENT AND THE LENDERS HEREBY  IRREVOCABLY
AND  UNCONDITIONALLY  WAIVE  TRIAL BY JURY IN ANY  LEGAL  ACTION  OR  PROCEEDING
RELATING TO THIS  AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY  COUNTERCLAIM
THEREIN.

                  18.17 Confidentiality. Each Lender agrees to keep confidential
any written or oral non-public information (a) provided to it by or on behalf of
the Company or any of its  Subsidiaries  pursuant to or in connection  with this
Agreement  or (b)  obtained  by such  Lender  based on a review of the books and
records of the Company or any of its Subsidiaries;  provided that nothing herein
shall prevent any Lender from  disclosing any such  information (i) to the Agent
or any other Lender,  (ii) to any  Transferee or  prospective  Transferee  which
agrees to comply with the provisions of this subsection, (iii) to its employees,
directors,  Affiliates,  agents,  attorneys,  accountants and other professional
advisors,  (iv) upon the request or demand of any Governmental  Authority having
jurisdiction  over such  Lender,  (v) in  response  to any order of any court or
other  Governmental  Authority or as may  otherwise be required  pursuant to any
Requirement of Law, (vi) which has been publicly  disclosed other than in breach
of this  Agreement,  or (vii) in  connection  with the  exercise  of any  remedy
hereunder.

                                      146
<PAGE>

                  IN WITNESS  WHEREOF,  the  parties  hereto  have  caused  this
Agreement to be duly executed and delivered by their proper and duly  authorized
officers as of the day and year first above written.

REMINGTON PRODUCTS COMPANY, L.L.C.

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

REMINGTON CONSUMER PRODUCTS LIMITED

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

THE CHASE MANHATTAN BANK
(formerly known as Chemical
Bank), as Agent, as a Lender
and as(or on behalf of) the
Issuing Bank

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

                                      147
<PAGE>

BANQUE NATIONALE DE PARIS, as a Co-
Documentation Agent and as a Lender

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

FLEET NATIONAL BANK, as a Co-Documentation
Agent and as a Lender

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

CORESTATES BANK, N.A.

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

THE FIRST NATIONAL BANK OF BOSTON

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

FIRST UNION BANK OF CONNECTICUT

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

HELLER FINANCIAL, INC.

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

PEOPLE'S BANK

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

                                      148
<PAGE>

PNC BANK, NATIONAL ASSOCIATION

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

THE PROVIDENT BANK

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

                                      149
<PAGE>

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