Document:

<PAGE>   1
                                                                    EXHIBIT 4.12

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                                CREDIT AGREEMENT

                          Dated as of November 30, 2000

                                      among

                                ELCOR CORPORATION
                                as the Borrower,

                             BANK OF AMERICA, N.A.,
                   as Administrative Agent, Swing Line Lender
                                       and
                                   L/C Issuer,

                             BANK ONE, TEXAS, N.A.,
                             as Documentation Agent,

                           FIRST UNION NATIONAL BANK,
                              as Syndication Agent,

                                       and

                         The Other Lenders Party Hereto

                         BANC OF AMERICA SECURITIES LLC,
                                       as
                    Sole Lead Arranger and Sole Book Manager

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<PAGE>   2

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
         Section                                                                                               Page
         -------                                                                                               ----
<S>                                                                                                           <C>

ELCOR CORPORATION ................................................................................................I

ARTICLE I. DEFINITIONS AND ACCOUNTING TERMS.......................................................................1
         1.01         Defined Terms...............................................................................1
         1.02         Other Interpretive Provisions..............................................................20
         1.03         Accounting Terms...........................................................................21
         1.04         Rounding...................................................................................21
         1.05         References to Agreements and Laws..........................................................21

ARTICLE II. THE COMMITMENTS AND CREDIT EXTENSIONS................................................................21
         2.01         Revolving Loans............................................................................21
         2.02         Borrowings, Conversions and Continuations of Committed Loans...............................22
         2.03         Letters of Credit..........................................................................23
         2.04         Swing Line Loans...........................................................................30
         2.05         Prepayments................................................................................33
         2.06         Reduction or Termination of Commitments....................................................33
         2.07         Repayment of Loans.........................................................................34
         2.08         Interest...................................................................................34
         2.09         Fees.......................................................................................34
         2.10         Computation of Interest and Fees...........................................................35
         2.11         Evidence of Debt...........................................................................35
         2.12         Payments Generally.........................................................................36
         2.13         Sharing of Payments........................................................................38
         2.14         Increase of Commitments....................................................................38

ARTICLE III. TAXES, YIELD PROTECTION AND ILLEGALITY..............................................................39
         3.01         Taxes......................................................................................39
         3.02         Illegality.................................................................................40
         3.03         Inability to Determine Rates...............................................................41
         3.04         Increased Cost and Reduced Return; Capital Adequacy; Reserves on Eurodollar Rate Loans.....41
         3.05         Funding Losses.............................................................................42
         3.06         Matters Applicable to all Requests for Compensation........................................42
         3.07         Survival...................................................................................43

ARTICLE IV. CONDITIONS PRECEDENT TO CREDIT EXTENSIONS............................................................43
         4.01         Conditions of Initial Credit Extension.....................................................43
         4.02         Conditions to all Credit Extensions and Conversions and Continuations......................44

ARTICLE V. REPRESENTATIONS AND WARRANTIES........................................................................45
         5.01         Existence, Qualification and Power; Compliance with Laws...................................45
         5.02         Authorization; No Contravention............................................................45
         5.03         Governmental Authorization.................................................................45
         5.04         Binding Effect.............................................................................45
         5.05         Financial Statements; No Material Adverse Effect...........................................45
         5.06         Litigation.................................................................................46
         5.07         No Default.................................................................................46
</TABLE>

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<TABLE>
<S>                                                                                                              <C>
         5.08         Ownership of Property; Liens...............................................................46
         5.09         Environmental Compliance...................................................................46
         5.10         Insurance..................................................................................46
         5.11         Taxes......................................................................................47
         5.12         ERISA Compliance...........................................................................47
         5.13         Subsidiaries...............................................................................47
         5.14         Margin Regulations; Investment Company Act; Public Utility Holding Company Act.............48
         5.15         Disclosure.................................................................................48
         5.16         Intellectual Property; Licenses, Etc.......................................................48
         5.17         Businesses.................................................................................48
         5.18         Common Enterprise..........................................................................49
         5.19         Solvent....................................................................................49

ARTICLE VI. AFFIRMATIVE COVENANTS................................................................................49
         6.01         Financial Statements.......................................................................49
         6.02         Certificates; Other Information............................................................50
         6.03         Notices....................................................................................50
         6.04         Payment of Obligations.....................................................................51
         6.05         Preservation of Existence, Etc.............................................................51
         6.06         Maintenance of Properties..................................................................51
         6.07         Maintenance of Insurance...................................................................51
         6.08         Compliance with Laws.......................................................................52
         6.09         Books and Records..........................................................................52
         6.10         Inspection Rights..........................................................................52
         6.11         Compliance with ERISA......................................................................52
         6.12         Use of Proceeds............................................................................52
         6.13         Further Assurances.........................................................................52
         6.14         Notice of Formation of Subsidiary..........................................................52
         6.15         Guaranties by New Subsidiaries.............................................................53

ARTICLE VII. NEGATIVE COVENANTS..................................................................................53
         7.01         Liens......................................................................................53
         7.02         Investments................................................................................54
         7.03         Fundamental Changes........................................................................54
         7.04         Dispositions...............................................................................54
         7.05         Restricted Payments........................................................................55
         7.06         ERISA......................................................................................55
         7.07         Change in Nature of Business...............................................................55
         7.08         Transactions with Affiliates...............................................................55
         7.09         Burdensome Agreements......................................................................55
         7.10         Use of Proceeds............................................................................55
         7.11         Foreign Subsidiary Indebtedness............................................................56
         7.12         Financial Covenants........................................................................56

ARTICLE VIII. EVENTS OF DEFAULT AND REMEDIES.....................................................................56
         8.01         Events of Default..........................................................................56
         8.02         Remedies Upon Event of Default.............................................................58

ARTICLE IX. ADMINISTRATIVE AGENT.................................................................................59
         9.01         Appointment and Authorization of Administrative Agent......................................59
</TABLE>

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<TABLE>
<S>                                                                                                              <C>
         9.02         Delegation of Duties.......................................................................59
         9.03         Liability of Administrative Agent..........................................................59
         9.04         Reliance by Administrative Agent...........................................................60
         9.07         Notice of Default..........................................................................60
         9.08         Credit Decision; Disclosure of Information by Administrative Agent.........................61
         9.09         INDEMNIFICATION OF ADMINISTRATIVE AGENT....................................................61
         9.10         Administrative Agent in its Individual Capacity............................................62
         9.11         Successor Administrative Agent.............................................................62
         9.12         Other Agents; Lead Managers................................................................63

ARTICLE X. MISCELLANEOUS.........................................................................................63
         10.01        Amendments, Etc............................................................................63
         10.02        Notices and Other Communications; Facsimile Copies.........................................64
         10.03        No Waiver; Cumulative Remedies.............................................................65
         10.04        Attorney Costs, Expenses and Taxes.........................................................65
         10.05        INDEMNIFICATION BY THE BORROWER............................................................66
         10.06        Payments Set Aside.........................................................................67
         10.07        Successors and Assigns.....................................................................67
         10.08        Confidentiality............................................................................70
         10.09        Set-off....................................................................................71
         10.10        Interest Rate Limitation...................................................................71
         10.11        Counterparts...............................................................................71
         10.12        Integration................................................................................72
         10.13        Survival of Representations and Warranties.................................................72
         10.14        Severability...............................................................................72
         10.15        Foreign Lenders............................................................................72
         10.16        Removal and Replacement of Lenders.........................................................73
         10.17        Exceptions to Covenants....................................................................74
         10.18        No Duties of Documentation Agent or Syndication Agent......................................74
         10.19        Effective Date.............................................................................74
         10.20        Governing Law..............................................................................74
         10.21        Waiver of Right to Trial by Jury...........................................................74
         10.22        Entire Agreement...........................................................................75

         SIGNATURES..............................................................................................76
</TABLE>

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<PAGE>   5

SCHEDULES

         2.01     Commitments and Pro Rata Shares
         2.03     Existing Letters of Credit
         5.06     Litigation
         5.09     Environmental Matters
         5.13     Subsidiaries and Other Equity Investments
         7.01     Existing Liens
         10.02    Eurodollar and Domestic Lending Offices, Addresses for Notices

EXHIBITS
                  FORM OF

         A        Revolving Loan Notice
         B        Swing Line Loan Notice
         C        Revolving Loan Note
         D        Swing Line Note
         E        Compliance Certificate
         F        Assignment and Acceptance
         G        Guaranty

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<PAGE>   6

                                CREDIT AGREEMENT

         This CREDIT AGREEMENT ("Agreement") is entered into as of November 30,
2000, among ELCOR CORPORATION, a Delaware Corporation (the "Borrower"), each
lender from time to time party hereto (collectively, the "Lenders" and
individually, a "Lender"), BANK ONE, TEXAS, N.A., as Documentation Agent, FIRST
UNION NATIONAL BANK, as Syndication Agent, and BANK OF AMERICA, N.A., as
Administrative Agent, Swing Line Lender and L/C Issuer.

         The Borrower has requested that the Lenders provide a revolving credit
facility, and the Lenders are willing to do so on the terms and conditions set
forth herein.

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

                                   ARTICLE I.
                        DEFINITIONS AND ACCOUNTING TERMS

         1.01 DEFINED TERMS. As used in this Agreement, the following terms
shall have the meanings set forth below:

         "Adjustment Date" means, for purposes of the Applicable Rate, the date
of receipt by the Administrative Agent of the financial statements required to
be delivered pursuant to Section 6.01, and the Compliance Certificate required
pursuant to Section 6.02(b).

         "Administrative Agent" means Bank of America in its capacity as
administrative agent under any of the Loan Documents, or any successor
administrative agent.

         "Administrative Agent's Office" means the Administrative Agent's
address and, as appropriate, account as set forth on Schedule 10.02, or such
other address or account as the Administrative Agent may from time to time
notify to the Borrower and the Lenders.

         "Affiliate" means, as to any Person, any other Person directly or
indirectly controlling, controlled by, or under direct or indirect common
control with, such Person. A Person shall be deemed to be "controlled by" any
other Person if such other Person possesses, directly or indirectly, power (a)
to vote 10% or more of the securities (on a fully diluted basis) having ordinary
voting power for the election of directors or managing general partners; or (b)
to direct or cause the direction of the management and policies of such Person
whether by contract or otherwise.

         "Agent/Arranger Fee Letter" has the meaning specified in Section
2.09(b).

         "Agent-Related Persons" means the Administrative Agent (including any
successor administrative agent), together with its Affiliates (including, in the
case of Bank of America in its capacity as the Administrative Agent, the
Arranger), and the officers, directors, employees, agents and attorneys-in-fact
of such Persons and Affiliates.

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<PAGE>   7

         "Aggregate Commitments" has the meaning set forth in the definition of
"Commitment."

         "Agreement" means this Credit Agreement.

         "Applicable Law" means (a) in respect of any Person, all provisions of
Laws applicable to such Person, and all orders and decrees of all courts and
arbitrators in proceedings or actions to which the Person in question is a party
and (b) in respect of contracts made or performed in the State of Texas,
"Applicable Law" shall also mean the laws of the United States of America,
including, without limitation the foregoing, 12 USC Sections 85 and 86, as
amended to the date hereof and as the same may be amended at any time and from
time to time hereafter, and any other statute of the United States of America
now or at any time hereafter prescribing the maximum rates of interest on loans
and extensions of credit, and the laws of the State of Texas. The Borrower
agrees that the provisions of Chapter 303 of the Texas Finance Code, as amended,
shall not apply to the Advances hereunder.

         "Applicable Rate" means the following percentages per annum:

<TABLE>
<CAPTION>
           PRICING                                           COMMITMENT          EURODOLLAR RATE
            LEVEL               LEVERAGE RATIO                   FEE            LETTERS OF CREDIT       BASE RATE
           -------              --------------               ----------         -----------------       ---------
<S>                    <C>                                   <C>                <C>                     <C>
             VII       Greater than or equal to 3.00 to         0.500                 2.125               0.625
                          1 for 2 consecutive fiscal
                                   quarters
              VI       Greater than or equal to                 0.375                 2.000               0.500
                           3.00 to 1
              V        Greater than or equal to 2.50 to         0.350                 1.625               0.125
                           1 but less than 3.00 to 1
              IV       Greater than or equal to 2.00 to         0.250                 1.125               0.000
                           1 but less than 2.50 to 1
             III       Greater than or equal to 1.50 to         0.225                 0.875               0.000
                           1 but less than 2.00 to 1
              II       Greater than or equal to 1.00 to         0.200                 0.750               0.000
                           1 but less than 1.50 to 1
              I               Less than 1.00 to 1               0.150                 0.625                0.00
</TABLE>

         The Applicable Rate shall be adjusted on each Adjustment Date as tested
by using the Leverage Ratio set forth on the Compliance Certificate on each
Adjustment Date. If the financial statements required pursuant to Section 6.01
and the related Compliance Certificate required pursuant to Section 6.02(b) are
not received by the Administrative Agent by the date required, the

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<PAGE>   8

Applicable Rate shall be determined using Pricing Level VII until such time as
such financial statements and Compliance Certificate are received.
Notwithstanding the foregoing, the Applicable Rate in effect from and after the
Closing Date through the date which is six months after the Closing Date, shall
be the higher of (a) the Pricing Level that would otherwise be in effect based
on the quarterly financial statements of the Borrower most recently received
after the Closing Date and (b) Level IV.

         "Approved Fund" has the meaning specified in Section 10.07(h).

         "Arranger" means Banc of America Securities LLC, in its capacity as
sole lead arranger and sole book manager.

         "Assignment and Acceptance" means an Assignment and Acceptance
substantially in the form of Exhibit F.

         "Attorney Costs" means and includes all reasonable fees and
disbursements of any law firm or other external counsel.

         "Attributable Indebtedness" means, on any date, (a) in respect of any
capital lease of any Person, the capitalized amount thereof that would appear on
a balance sheet of such Person prepared as of such date in accordance with GAAP,
and (b) in respect of any Synthetic Lease Obligation, the capitalized amount of
the remaining lease payments under the relevant lease that would appear on a
balance sheet of such Person prepared as of such date in accordance with GAAP if
such lease were accounted for as a capital lease.

         "Audited Financial Statements" means the audited consolidated balance
sheet of the Borrower and its Subsidiaries for the fiscal year ended June 30,
2000 and the related consolidated statements of income and cash flows for such
fiscal year of the Borrower.

         "Bank of America" means Bank of America, N.A.

         "Base Rate" means for any day a fluctuating rate per annum equal to the
higher of (a) the Federal Funds Rate plus 1/2 of 1% and (b) the rate of interest
in effect for such day as publicly announced from time to time by Bank of
America as its "prime rate." Such rate is a rate set by Bank of America based
upon various factors including Bank of America's costs and desired return,
general economic conditions and other factors, and is used as a reference point
for pricing some loans, which may be priced at, above, or below such announced
rate. Any change in such rate announced by Bank of America shall take effect at
the opening of business on the day specified in the public announcement of such
change.

         "Base Rate Loan" means a Loan that bears interest based on the Base
Rate.

         "Board" means the Board of Governors of the Federal Reserve System of
the United States of America.

         "Borrower" has the meaning set forth in the introductory paragraph
hereto.

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<PAGE>   9

         "Borrowing" means a Revolving Borrowing or a Swing Line Borrowing, as
the context may require.

         "Business Day" means any day other than a Saturday, Sunday, or other
day on which commercial banks are authorized to close under the Laws of, or are
in fact closed in, the state where the Administrative Agent's Office is located
and, if such day relates to any Eurodollar Rate Loan, means any such day on
which dealings in Dollar deposits are conducted by and between banks in the
applicable offshore Dollar interbank market.

         "Capital Stock" means, as to any Person, the equity interests in such
Person, including, without limitation, the shares of each class of capital stock
in any Person that is a corporation, each class of partnership interest in any
Person that is a partnership, and each class of membership interest in any
Person that is a limited liability company.

         "Capitalization Ratio" means, as of the date of determination, for the
Borrower and its Subsidiaries on a consolidated basis, the ratio of (a)
Consolidated Funded Indebtedness as of such date to (b) Consolidated
Capitalization as of such date.

         "Cash Collateralize" means to pledge and deposit with or deliver to the
Administrative Agent, for the benefit of the L/C Issuer and the Lenders, as
collateral for the L/C Obligations, cash or deposit account balances pursuant to
documentation in form and substance satisfactory to the Administrative Agent and
the L/C Issuer (which documents are hereby consented to by the Lenders).
Derivatives of such term shall have corresponding meaning. The Borrower hereby
grants the Administrative Agent, for the benefit of the L/C Issuer and the
Lenders, a Lien on all such cash and deposit account balances. Cash collateral
shall be maintained in blocked, non-interest bearing deposit accounts at Bank of
America.

         "Change of Control" means, with respect to any Person, an event or
series of events by which:

                  (a) any "person" or "group" (as such terms are used in
         Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, but
         excluding any employee benefit plan of such Person or its subsidiaries,
         or any Person acting in its capacity as trustee, agent or other
         fiduciary or administrator of any such plan), becomes the "beneficial
         owner" (as defined in Rules 13d-3 and 13d-5 under the Securities
         Exchange Act of 1934, except that a person shall be deemed to have
         "beneficial ownership" of all securities that such person has the right
         to acquire, whether such right is exercisable immediately or only after
         the passage of time), directly or indirectly, of 30% or more of the
         equity interests of such Person; or

                  (b) during any period of 12 consecutive months, a majority of
         the members of the board of directors or other equivalent governing
         body of such Person cease to be composed of individuals (i) who were
         members of that board or equivalent governing body on the first day of
         such period, (ii) whose election or nomination to that board or
         equivalent governing body was approved by individuals referred to in
         clause (i) above constituting at the time of such election or
         nomination at least a majority of that board or

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<PAGE>   10

         equivalent governing body or (iii) whose election or nomination to that
         board or other equivalent governing body was approved by individuals
         referred to in clauses (i) and (ii) above constituting at the time of
         such election or nomination at least a majority of that board or
         equivalent governing body.

         "Closing Date" means the first date all the conditions precedent in
Section 4.01 are satisfied or waived in accordance with Section 4.01 (or, in the
case of Section 4.01(b), waived by the Person entitled to receive the applicable
payment).

         "Code" means the Internal Revenue Code of 1986.

         "Commitment" means, as to each Lender, its obligation to (a) make Loans
to the Borrower pursuant to Section 2.01, (b) purchase participations in L/C
Obligations, and (c) purchase participations in Swing Line Loans, in an
aggregate principal amount at any one time outstanding not to exceed the amount
set forth opposite such Lender's name on Schedule 2.01, as such amount may be
reduced, increased or adjusted from time to time in accordance with this
Agreement (collectively, the "Aggregate Commitments").

         "Commitment Fee" has the meaning specified in Section 2.09(a).

         "Compensation Period" has the meaning specified in Section 2.12(d)(ii).

         "Compliance Certificate" means a certificate substantially in the form
of Exhibit E.

         "Consolidated Adjusted Net Income" means, for any period, for the
Borrower and its Subsidiaries on a consolidated basis, the net income of the
Borrower and its Subsidiaries from continuing operations (excluding any items of
extraordinary gain, including net gains on the sale of assets other than asset
sales in the ordinary course of business, and excluding any items of
extraordinary loss, including net losses on sales of assets other than asset
sales in the ordinary course of business) for that period.

         "Consolidated Capitalization" means, as of any date of determination,
for the Borrower and its Subsidiaries on a consolidated basis, an amount equal
to the sum of (a) Consolidated Funded Indebtedness, and (b) Consolidated Net
Worth.

         "Consolidated EBIT" means, for any period, for the Borrower and its
Subsidiaries on a consolidated basis, an amount equal to the sum of (a)
Consolidated Adjusted Net Income, (b) Consolidated Interest Expense, and (c) the
amount of taxes, based on or measured by income, used or included in the
determination of such Consolidated Net Income.

         "Consolidated EBITDA" means, as to any date of determination, for the
Borrower and its Subsidiaries on a consolidated basis, an amount equal to the
sum of (a) Consolidated EBIT and (b) the amount of depreciation and amortization
expense deducted in determining Consolidated Net Income.

         "Consolidated Funded Indebtedness" means, as of any date of
determination, for the Borrower and its Subsidiaries on a consolidated basis,
the sum of (a) the outstanding principal

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<PAGE>   11

amount of all obligations and liabilities, whether current or long-term, for
borrowed money (including Obligations hereunder) or for the deferred purchase
price of property or services (excluding accounts payable in the ordinary course
of business), plus (b) that portion of obligations with respect to capital
leases that are capitalized in the consolidated balance sheet of the Borrower
and its Subsidiaries, plus (c) without duplication, all Guaranty Obligations
with respect to Indebtedness of the type specified in subsections (a) and (b)
above of Persons other than the Borrower or any Subsidiary, minus (d) cash in
excess of $2,000,000.

         "Consolidated Net Income" means, for any period, for the Borrower and
its Subsidiaries on a consolidated basis, the net income of the Borrower and its
Subsidiaries for that period.

         "Consolidated Interest Charges" means, for any period, for the Borrower
and its Subsidiaries on a consolidated basis, the sum of (a) net interest
expense calculated in accordance with GAAP, and (b) interest which has been
capitalized in accordance with GAAP.

         "Consolidated Interest Expense" means, for any period, for the Borrower
and its Subsidiaries on a consolidated basis, net interest expense calculated in
accordance with GAAP.

          "Consolidated Net Worth" means, as of any date of determination, for
the Borrower and its Subsidiaries on a consolidated basis, Shareholders' Equity
of the Borrower and its Subsidiaries on that date.

         "Contractual Obligation" means, 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.

         "Credit Extension" means each of the following: (a) a Revolving
Borrowing, (b) a Swing Line Borrowing, and (c) an L/C Credit Extension.

         "Debtor Relief Laws" means the Bankruptcy Code of the United States of
America, and all other liquidation, conservatorship, bankruptcy, assignment for
the benefit of creditors, moratorium, rearrangement, receivership, insolvency,
reorganization, or similar debtor relief Laws of the United States of America or
other applicable jurisdictions from time to time in effect and affecting the
rights of creditors generally.

         "Default" means any event that, with the giving of any notice, the
passage of time, or both, would be an Event of Default.

         "Default Rate" means an interest rate equal to (a) the Base Rate plus
(b) the Applicable Rate, if any, applicable to Base Rate Loans plus (c) 2% per
annum; provided, however, that with respect to a Eurodollar Rate Loan, the
Default Rate shall be an interest rate equal to the interest rate (including any
Applicable Rate) otherwise applicable to such Loan plus 2% per annum, in each
case to the fullest extent permitted by Applicable Law.

         "Disposition" or "Dispose" means the sale, transfer, license or other
disposition (including any sale and leaseback transaction) of any property by
any Person, including any sale,

                                       6
<PAGE>   12

assignment, transfer or other disposal, with or without recourse, of any notes
or accounts receivable or any rights and claims associated therewith.

         "Documentation Agent" means Bank One, Texas, N.A., in its capacity as
documentation agent under any of the Loan Documents.

         "Dollar" and "$" means lawful money of the United States of America.

         "Domestic Subsidiary" means any Subsidiary of the Borrower other than a
Foreign Subsidiary.

         "Eligible Assignee" has the meaning specified in Section 10.07(h).

         "Environmental Laws" means all Laws relating to environmental, health,
safety and land use matters applicable to any property.

         "ERISA" means the Employee Retirement Income Security Act of 1974 and
any regulations issued pursuant thereto.

         "ERISA Affiliate" means any trade or business (whether or not
incorporated) under common control with the Borrower within the meaning of
Section 414(b) or (c) of the Code (and Sections 414(m) and (o) of the Code for
purposes of provisions relating to Section 412 of the Code).

         "ERISA Event" means (a) a Reportable Event with respect to a Pension
Plan; (b) a withdrawal by the Borrower or any ERISA Affiliate from a Pension
Plan subject to Section 4063 of ERISA during a plan year in which it was a
substantial employer (as defined in Section 4001(a)(2) of ERISA) or a cessation
of operations that is treated as such a withdrawal under Section 4062(e) of
ERISA; (c) a complete or partial withdrawal by the Borrower or any ERISA
Affiliate from a Multiemployer Plan or notification that a Multiemployer Plan is
in reorganization; (d) the filing of a notice of intent to terminate, the
treatment of a Pension Plan amendment as a termination under Sections 4041 or
4041A of ERISA, or the commencement of proceedings by the PBGC to terminate a
Pension Plan or Multiemployer Plan; (e) an event or condition which might
reasonably be expected to constitute grounds under Section 4042 of ERISA for the
termination of, or the appointment of a trustee to administer, any Pension Plan
or Multiemployer Plan; or (f) the imposition of any liability under Title IV of
ERISA with respect to a Pension Plan, other than PBGC premiums due but not
delinquent under Section 4007 of ERISA, upon the Borrower or any ERISA
Affiliate.

         "Eurodollar Rate" means for any Interest Period with respect to any
Eurodollar Rate Loan:

                  (a) the rate per annum equal to the rate determined by the
         Administrative Agent to be the offered rate that appears on the page of
         the Telerate screen (or any successor thereto) that displays an average
         British Bankers Association Interest Settlement Rate for deposits in
         Dollars (for delivery on the first day of such Interest Period) with a
         term equivalent to such Interest Period, determined as of approximately

                                       7
<PAGE>   13

         11:00 a.m. (London time) two Business Days prior to the first day of
         such Interest Period, or

                  (b) if the rate referenced in the preceding subsection (a)
         does not appear on such page or service or such page or service shall
         cease to be available, the rate per annum equal to the rate determined
         by the Administrative Agent to be the offered rate on such other page
         or other service that displays an average British Bankers Association
         Interest Settlement Rate for deposits in Dollars (for delivery on the
         first day of such Interest Period) with a term equivalent to such
         Interest Period, determined as of approximately 11:00 a.m. (London
         time) two Business Days prior to the first day of such Interest Period,
         or

                  (c) if the rates referenced in the preceding subsections (a)
         and (b) are not available, the rate per annum determined by the
         Administrative Agent as the rate of interest (rounded upward to the
         next 1/100th of 1%) at which deposits in Dollars for delivery on the
         first day of such Interest Period in same day funds in the approximate
         amount of the Eurodollar Rate Loan being made, continued or converted
         by Bank of America and with a term equivalent to such Interest Period
         would be offered by Bank of America's London Branch to major banks in
         the offshore Dollar market at their request at approximately 11:00 a.m.
         (London time) two Business Days prior to the first day of such Interest
         Period.

         "Eurodollar Rate Loan" means a Revolving Loan that bears interest at a
rate based on the Eurodollar Rate.

         "Event of Default" means any of the events or circumstances specified
in Article VIII.

         "Evergreen Letter of Credit" has the meaning specified in Section
2.03(b)(iii).

         "Existing Credit Facility" means that certain Loan Agreement dated as
of September 23, 1993 among the Borrower, Bank of America, N.A., as
administrative lender, and certain lenders, as heretofore amended.

         "Existing Letters of Credit" means the letters of credit set forth on
Schedule 2.03.

         "Federal Funds Rate" means, for any day, the rate per annum (rounded
upwards to the nearest 1/100 of 1%) equal to the weighted average of the rates
on overnight Federal funds transactions with members of the Federal Reserve
System arranged by Federal funds brokers on such day, as published by the
Federal Reserve Bank on the Business Day next succeeding such day; provided that
(a) if such day is not a Business Day, the Federal Funds Rate for such day shall
be such rate on such transactions on the next preceding Business Day as so
published on the next succeeding Business Day, and (b) if no such rate is so
published on such next succeeding Business Day, the Federal Funds Rate for such
day shall be the average rate charged to Bank of America on such day on such
transactions as determined by the Administrative Agent.

         "Fee Letters" means, collectively, the Agent/Arranger Fee Letter and
the Lender Fee Letter.

                                       8
<PAGE>   14

         "Foreign Lender" has the meaning specified in Section 10.15.

         "Foreign Subsidiary" means any Subsidiary of the Borrower which is not
organized under the Laws of any state of the United States of America or the
District of Columbia.

         "Fund" has the meaning specified in Section 10.07(h).

         "GAAP" means generally accepted accounting principles as in effect in
the United States as set forth in the opinions and pronouncements of the
Accounting Principles Board and the American Institute of Certified Public
Accountants and statements and pronouncements of the Financial Accounting
Standards Board or such other principles as may be approved by a significant
segment of the accounting profession, that are applicable to the circumstances
as of the date of determination, consistently applied. If at any time any change
in GAAP would affect the computation of any financial ratio or requirement set
forth in any Loan Document, and either the Borrower or the Required Lenders
shall so request, the Administrative Agent, the Lenders and the Borrower shall
negotiate in good faith to amend such ratio or requirement to preserve the
original intent thereof in light of such change in GAAP (subject to the approval
of the Required Lenders); provided that, until so amended, (a) such ratio or
requirement shall continue to be computed in accordance with GAAP prior to such
change therein and (b) the Borrower shall provide to the Administrative Agent
and the Lenders financial statements and other documents required under this
Agreement or as reasonably requested hereunder setting forth a reconciliation
between calculations of such ratio or requirement made before and after giving
effect to such change in GAAP.

         "Governmental Authority" means any nation or government, any state or
other political subdivision thereof, any agency, authority, instrumentality,
regulatory body, court, administrative tribunal, central bank or other entity
exercising executive, legislative, judicial, taxing, regulatory or
administrative powers or functions of or pertaining to government, and any
corporation or other entity owned or controlled, through stock or capital
ownership or otherwise, by any of the foregoing.

         "Guarantors" means, collectively, each direct or indirect Domestic
Subsidiary.

         "Guaranty" means the Guaranty made by one or more of the Guarantors,
substantially in the form of Exhibit G.

         "Guaranty Obligation" means, as to any Person, any (a) any obligation,
contingent or otherwise, of such Person guarantying or having the economic
effect of guarantying any Indebtedness or other obligation payable or
performable by another Person (the "primary obligor") in any manner, whether
directly or indirectly, and including any obligation of such Person, direct or
indirect, (i) to purchase or pay (or advance or supply funds for the purchase or
payment of) such Indebtedness or other obligation, (ii) to purchase or lease
property, securities or services for the purpose of assuring the obligee in
respect of such Indebtedness or other obligation of the payment or performance
of such Indebtedness or other obligation, (iii) to maintain working capital,
equity capital or any other financial statement condition or liquidity of the
primary obligor so as to enable the primary obligor to pay such Indebtedness or
other

                                       9
<PAGE>   15

obligation, or (iv) entered into for the purpose of assuring in any other manner
the obligees in respect of such Indebtedness or other obligation of the payment
or performance thereof or to protect such obligees against loss in respect
thereof (in whole or in part), or (b) any Lien on any assets of such Person
securing any Indebtedness or other obligation of any other Person, whether or
not such Indebtedness or other obligation is assumed by such Person; provided,
however, that the term "Guaranty Obligation" shall not include endorsements of
instruments for deposit or collection in the ordinary course of business. The
amount of any Guaranty Obligation shall be deemed to be an amount equal to the
stated or determinable amount of the related primary obligation, or portion
thereof, in respect of which such Guaranty Obligation is made or, if not stated
or determinable, the maximum reasonably anticipated liability in respect thereof
as determined by the guarantying Person in good faith.

         "Highest Lawful Rate" at the particular time in question the maximum
rate of interest which, under Applicable Law, any Lender is then permitted to
charge on the Obligations. If the maximum rate of interest which, under
Applicable Law, any Lender is permitted to charge on the Obligations shall
change after the date hereof, the Highest Lawful Rate shall be automatically
increased or decreased, as the case may be, from time to time as of the
effective time of each change in the Highest Lawful Rate without notice to the
Borrower. For purposes of determining the Highest Lawful Rate under Applicable
Law, the indicated rate ceiling shall be the lesser of (a)(i) the "weekly
ceiling", as that expression is defined in Section 303.003 of the Texas Finance
Code, as amended, or (ii) if available in accordance with the terms thereof and
at the Administrative Agent's option after notice to the Borrower and otherwise
in accordance with the terms of Section 303.103 of the Texas Finance Code, as
amended, the "annualized ceiling" and (b)(i) if the amount outstanding under
this Agreement is less than $250,000, twenty-four percent (24%), or (ii) if the
amount under this Agreement is equal to or greater than $250,000, twenty-eight
percent (28%) per annum.

         "Honor Date" has the meaning specified in Section 2.03(c)(i).

         "ICC" has the meaning specified in Section 2.03(h).

         "Increase Effective Date" has the meaning specified in Section 2.14(b).

         "Indebtedness" means, as to any Person at a particular time, all of the
following:

                  (a) all obligations of such Person for borrowed money and all
         obligations of such Person evidenced by bonds, debentures, notes, loan
         agreements or other similar instruments;

                  (b) any direct or contingent obligations of such Person
         arising under letters of credit (including standby and commercial),
         banker's acceptances, bank guaranties, surety bonds and similar
         instruments;

                  (c) net obligations under any Swap Contract in an amount equal
         to (i) if such Swap Contract has been closed out, the termination value
         thereof, or (ii) if such Swap Contract has not been closed out, the
         mark-to-market value thereof determined on the

                                       10
<PAGE>   16

         basis of readily available quotations provided by any recognized dealer
         in such Swap Contract;

                  (d) whether or not so included as liabilities in accordance
         with GAAP, all obligations of such Person to pay the deferred purchase
         price of property or services, and indebtedness (excluding prepaid
         interest thereon) secured by a Lien on property owned or being
         purchased by such Person (including indebtedness arising under
         conditional sales or other title retention agreements), whether or not
         such indebtedness shall have been assumed by such Person or is limited
         in recourse;

                  (e) capital leases and Synthetic Lease Obligations;

                  (f) any Redeemable Stock of such Person; and

                  (f) all Guaranty Obligations of such Person in respect of any
         of the foregoing.

         For all purposes hereof, the Indebtedness of any Person shall include
the Indebtedness of any partnership or joint venture in which such Person is a
general partner or a joint venturer, unless such Indebtedness is expressly made
non-recourse to such Person except for customary exceptions acceptable to the
Required Lenders. The amount of any capital lease or Synthetic Lease Obligation
as of any date shall be deemed to be the amount of Attributable Indebtedness in
respect thereof as of such date.

         "Indemnified Liabilities" has the meaning set forth in Section 10.05.

         "Indemnitees" has the meaning set forth in Section 10.05.

         "Information" has the meaning set forth in Section 10.08.

         "Interest Coverage Ratio" means, as of any date of determination, the
ratio of (a) Consolidated EBIT for the period of four consecutive fiscal
quarters ending on such date to (b) Consolidated Interest Charges for the period
of four consecutive fiscal quarters ending on such date.

         "Interest Payment Date" means, (a) as to any Loan other than a Base
Rate Loan, the last day of each Interest Period applicable to such Loan;
provided, however, that if any Interest Period for a Eurodollar Rate Loan
exceeds three months, the respective dates that fall every three months after
the beginning of such Interest Period shall also be Interest Payment Dates; and
(b) as to any Base Rate Loan (including a Swing Line Loan), the first Business
Day of each January, April, June and October and the Maturity Date.

         "Interest Period" means as to each Eurodollar Rate Loan, the period
commencing on the date such Eurodollar Rate Loan is disbursed or converted to or
continued as a Eurodollar Rate Loan and ending on the date one, two, three or
six months thereafter, as selected by the Borrower in its Revolving Loan Notice,
as the case may be; provided that:

                                       11
<PAGE>   17

                  (i) any Interest Period that would otherwise end on a day that
         is not a Business Day shall be extended to the next succeeding Business
         Day unless, in the case of a Eurodollar Rate Loan, such Business Day
         falls in another calendar month, in which case such Interest Period
         shall end on the next preceding Business Day;

                  (ii) any Interest Period pertaining to a Eurodollar Rate Loan
         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 the end of such Interest Period) shall end on the last
         Business Day of the calendar month at the end of such Interest Period;
         and

                  (iii) no Interest Period shall extend beyond the scheduled
         Maturity Date.

         "Investment" means, as to any Person, any acquisition or investment by
such Person, whether by means of (a) the purchase or other acquisition of
capital stock or other securities of another Person, (b) a loan, advance or
capital contribution (including a contribution of property) to, guaranty of debt
of, or purchase or other acquisition of any other debt or equity participation
or interest in, another Person, including any partnership or joint venture
interest in such other Person, or (c) the purchase or other acquisition (in one
transaction or a series of transactions) of assets of another Person that
constitute a business unit. For purposes of covenant compliance, the amount of
any Investment shall be the amount actually invested, without adjustment for
subsequent increases or decreases in the value of such Investment.

         "IRS" means the United States Internal Revenue Service.

         "Laws" means, collectively, all international, foreign, Federal, state
and local statutes, treaties, rules, guidelines, regulations, ordinances, codes
and administrative or judicial precedents or authorities, including the
interpretation or administration thereof by any Governmental Authority charged
with the enforcement, interpretation or administration thereof, and all
applicable administrative orders, directed duties, requests, licenses,
authorizations and permits of, and agreements with, any Governmental Authority,
in each case whether or not having the force of law.

         "L/C Advance" means, with respect to each Lender, such Lender's
participation in any L/C Borrowing in accordance with its Pro Rata Share.

         "L/C Borrowing" means an extension of credit resulting from a drawing
under any Letter of Credit which has not been reimbursed on the date when made
or refinanced as a Revolving Borrowing.

         "L/C Credit Extension" means, with respect to any Letter of Credit, the
issuance thereof or extension of the expiry date thereof, or the renewal or
increase of the amount thereof.

         "L/C Issuer" means Bank of America in its capacity as issuer of Letters
of Credit hereunder, or any successor issuer of Letters of Credit hereunder.

                                       12
<PAGE>   18

         "L/C Obligations" means, as at any date of determination, the aggregate
undrawn face amount of all outstanding Letters of Credit plus the aggregate of
all Unreimbursed Amounts, including all L/C Borrowings.

         "Lender" has the meaning specified in the introductory paragraph hereto
and, as the context requires, includes the L/C Issuer and the Swing Line Lender.

         "Lender Fee Letter" has the meaning set forth in Section 2.09(c).

         "Lending Office" means, as to any Lender, the office or offices of such
Lender described as such on Schedule 10.02, or such other office or offices as a
Lender may from time to time notify the Borrower and the Administrative Agent.

         "Letter of Credit" means any letter of credit issued hereunder and
shall include the Existing Letters of Credit. A Letter of Credit may be a
commercial letter of credit or a standby letter of credit.

         "Letter of Credit Application" means an application and agreement for
the issuance or amendment of a letter of credit in the form from time to time in
use by the L/C Issuer.

         "Letter of Credit Expiration Date" means the day that is seven days
prior to the Maturity Date (or, if such day is not a Business Day, the next
preceding Business Day).

         "Letter of Credit Sublimit" means an amount equal to the lesser of the
Aggregate Commitments and $10,000,000. The Letter of Credit Sublimit is part of,
and not in addition to, the Aggregate Commitments.

         "Leverage Ratio" means, as of any date of determination, for the
Borrower and its Subsidiaries on a consolidated basis, the ratio of (a)
Consolidated Funded Indebtedness as of such date to (b) Consolidated EBITDA for
the period of the four consecutive fiscal quarters ending on such date. For
purposes of calculating the Leverage Ratio, Consolidated EBITDA shall include
(exclude) the trailing four fiscal quarters of EBITDA attributable to any assets
acquired (disposed of) during such period, as determined by a method reasonably
satisfactory to the Required Lenders.

         "Lien" means any mortgage, pledge, hypothecation, assignment as
security for Indebtedness, encumbrance, lien (statutory or other), charge, or
preference, priority or other security interest or preferential arrangement of
any kind or nature whatsoever (including any conditional sale or other title
retention agreement, any financing lease having substantially the same economic
effect as any of the foregoing, and the filing of any financing statement under
the Uniform Commercial Code or comparable Laws of any jurisdiction), including
the interest of a purchaser of accounts receivable.

         "Litigation" means any proceeding, claim, lawsuit, arbitration, and/or
investigation by or before any Government Authority, including, without
limitation, proceedings, claims, lawsuits, and/or investigations under or
pursuant to any environmental, occupational, safety and health,

                                       13
<PAGE>   19

antitrust, unfair competition, securities, tax or other Law, or under or
pursuant to any contract, agreement or other instrument.

         "Loan" means an extension of credit by a Lender to the Borrower under
Article II in the form of a Revolving Loan or a Swing Line Loan.

         "Loan Documents" means this Agreement, the Notes, each Fee Letter, any
Swap Contract entered into with any Lender or any Affiliate of any Lender, each
Guaranty, each Request for Credit Extension, each Compliance Certificate, and
any other agreement executed, delivered or performable by any Loan Party in
connection herewith or as security for the Obligations.

         "Loan Parties" means, collectively, the Borrower and each Guarantor.

         "Material Adverse Effect" means any act or circumstance or event which
(a) causes an Event of Default or Default, (b) otherwise is material and adverse
to the consolidated financial condition or business operations of the Borrower
and its Subsidiaries and which could reasonably be expected to result in a
Default or an Event of Default, (c) in any manner whatsoever adversely affects
the validity or enforceability of any of the Loan Documents or (d) impairs the
ability of the Borrower or any of its Subsidiaries to perform its obligations
under any of the Loan Documents to which it is a party.

         "Material Loan Documents" means this Agreement, the Notes, each Fee
Letter, any Swap Contract entered into with any Lender or any Affiliate of any
Lender and each Guaranty.

         "Maturity Date" means (a) November 30, 2005, or (b) such earlier date
upon which the Commitments may be terminated in accordance with the terms
hereof.

         "Moody's" means Moody's Investors Service, Inc.

         "Multiemployer Plan" means any employee benefit plan of the type
described in Section 4001(a)(3) of ERISA, to which the Borrower or any ERISA
Affiliate makes or is obligated to make contributions, or during the preceding
three calendar years, has made or been obligated to make contributions.

         "Nonrenewal Notice Date" has the meaning specified in Section
2.03(b)(iii).

         "Notes" means, collectively, the Revolving Loan Notes and the Swing
Line Note.

         "Obligations" means all advance to, and debts, liabilities,
obligations, covenants and duties of, any Loan Party arising under any Loan
Document, whether direct or indirect (including those acquired by assumption),
absolute or contingent, due or to become due, now existing or hereafter arising.
Without limiting the generality of the foregoing, "Obligations" includes all
amounts which would be owed by any Loan Party or any other Person (other than
Administrative Agent or Lenders) to Administrative Agent, Lenders or any
Affiliate of a Lender under any Loan Document, but for the fact that they are
unenforceable or not allowable due to the existence of a bankruptcy,
reorganization or similar proceeding involving any Loan Party or any other
Person (including all such amounts which would become due or would be secured
but for the filing of

                                       14
<PAGE>   20

any petition in bankruptcy, or the commencement of any insolvency,
reorganization or like proceeding of any other Loan Party or any other Person
under any Debtor Relief Law).

         "Organization Documents" means, (a) with respect to any corporation,
the certificate or articles of incorporation and the bylaws; (b) with respect to
any limited liability company, the articles of formation and operating
agreement; and (c) with respect to any partnership, joint venture, trust or
other form of business entity, the partnership, joint venture or other
applicable agreement of formation and any agreement, instrument, filing or
notice with respect thereto filed in connection with its formation with the
secretary of state or other department in the state of its formation, in each
case as amended from time to time.

         "Other Taxes" has the meaning set forth in Section 3.01(b).

         "Outstanding Amount" means (i) with respect to Revolving Loans, and
Swing Line Loans on any date, the aggregate outstanding principal amount thereof
after giving effect to any borrowings and prepayments or repayments of Revolving
Loans and Swing Line Loans, as the case may be, occurring on such date; and (ii)
with respect to any L/C Obligations on any date, the amount of such L/C
Obligations on such date after giving effect to any L/C Credit Extension
occurring on such date and any other changes in the aggregate amount of the L/C
Obligations as of such date, including as a result of any reimbursements of
outstanding unpaid drawings under any Letters of Credit or any reductions in the
maximum amount available for drawing under Letters of Credit taking effect on
such date.

         "Participant" has the meaning specified in Section 10.07(d).

         "PBGC" means the Pension Benefit Guaranty Corporation.

         "Pension Plan" means any "employee pension benefit plan" (as such term
is defined in Section 3(2) of ERISA), other than a Multiemployer Plan, that is
subject to Title IV of ERISA and is sponsored or maintained by the Borrower or
any ERISA Affiliate or to which the Borrower or any ERISA Affiliate contributes
or has an obligation to contribute, or in the case of a multiple employer plan
(as described in Section 4064(a) of ERISA) has made contributions at any time
during the immediately preceding five plan years.

         "Permitted Investments" means all Investments by the Borrower and its
Subsidiaries, in the following:

                  (a) Current assets arising from the sale of goods and services
         in the ordinary course of business of the Borrower and its
         Subsidiaries;

                  (b) Investments in direct obligations of the United States of
         America or any agency thereof or obligations guaranteed by the United
         States of America provided that such obligations mature within one year
         from the date of acquisition thereof;

                  (c) Installment sales or leases of machinery or equipment,
         whether or not held for sale in the ordinary course of business;
         provided that in the case of an installment sale, a purchase money
         security interest is retained and perfected, or in the case of a lease,
         a

                                       15
<PAGE>   21

         security interest is retained and perfected, if the total purchase
         price or rentals in any such sale or lease, as the case may be, exceeds
         $250,000;

                  (d) Loans to employees or employee benefit plans or trusts of
         the Borrower or any of its Subsidiaries not to exceed in the aggregate,
         at the time of and after giving effect to such Investment, ten percent
         of Shareholders' Equity;

                  (e) Property to be used in the ordinary course of any business
         in which the Borrower or any of its Subsidiaries may hereafter engage,
         or in the ordinary course of any business hereafter acquired by the
         Borrower or any of its Subsidiaries;

                  (f) Investments in commercial paper and other securities and
         certificates of deposit each maturing no later than one year from the
         date of creation or acquisition and rated at least A1 or P-1 by Moody's
         or S&P with respect to commercial paper and at least the generic letter
         rating equivalent (investment grade) with respect to other securities
         and certificates of deposit by Moody's and S&P;

                  (g) Investments in treasury stock, subject to Section 7.05;

                  (h) Investments in any Guarantor;

                  (i) Investments in Foreign Subsidiaries not to exceed in
         aggregate amount at any time the greater of (i) $30,000,000 or (ii) 20%
         of Consolidated Net Worth;

                  (j) Investments in respect of Swap Contracts which are entered
         into in the ordinary course of business for the purpose of limiting
         risks that arise in the ordinary course of business and which are not
         for speculative purposes; and

                  (k) Investments either (i) in excess of what would otherwise
         be the maximum amount for such type of investment under the provision
         of this definition of Permitted Investments (but excluding additional
         Investments in Foreign Subsidiaries); or (ii) in any Person or Property
         not otherwise permitted by this definition of Permitted Investments,
         but which, in the aggregate do not exceed, at the time of and after
         giving effect to any such investments, $10,000,000.

         "Person" means any individual, trustee, corporation, general
partnership, limited partnership, limited liability company, joint stock
company, trust, unincorporated organization, bank, business association, firm,
joint venture or Governmental Authority.

         "Plan" means any "employee benefit plan" (as such term is defined in
Section 3(3) of ERISA) established by the Borrower or any ERISA Affiliate.

         "Pro Rata Share" means, with respect to each Lender, the percentage
(carried out to the ninth decimal place) of the Aggregate Commitments set forth
opposite the name of such Lender on Schedule 2.01, as such share may be adjusted
as contemplated herein.

                                       16
<PAGE>   22

         "Property" means any investment in any kind of property or asset,
whether real, personal or mixed, tangible or intangible.

         "Redeemable Stock" means any capital stock or other equity interest of
the Borrower or any of its Subsidiaries which prior to December 31, 2005 is (a)
unilaterally redeemable (by seeking final or similar payments or otherwise) upon
the occurrence of certain events or otherwise (b) redeemable at the option of
the holder thereof or (c) convertible into Indebtedness.

         "Register" has the meaning set forth in Section 10.07(c).

         "Reportable Event" means any of the events set forth in Section 4043(c)
of ERISA, other than events for which the 30 day notice period has been waived.

         "Request for Credit Extension" means (a) with respect to a Borrowing,
conversion or continuation of Revolving Loans, a Revolving Loan Notice, (b) with
respect to an L/C Credit Extension, a Letter of Credit Application, and (c) with
respect to a Swing Line Loan, a Swing Line Loan Notice.

         "Required Lenders" means, as of any date of determination, Lenders
whose Voting Percentages aggregate more than 66-2/3%.

         "Responsible Officer" means the president, chief financial or
accounting officer, treasurer or corporate secretary of a Loan Party. Any
document delivered hereunder that is signed by a Responsible Officer of a Loan
Party shall be conclusively presumed to have been authorized by all necessary
corporate, partnership and/or other action on the part of such Loan Party and
such Responsible Officer shall be conclusively presumed to have acted on behalf
of such Loan Party.

         "Restricted Payment" means (a) any dividend or other distribution or
payment (whether in cash, securities or other property) with respect to any
Capital Stock of the Borrower or any Subsidiary, but excluding any dividend
payable solely in shares of common stock of the Borrower or any Subsidiary or
any dividend, distribution or payment from any Subsidiary to the Borrower or to
a Guarantor and (b) any Treasury Stock Purchases.

         "Revolving Borrowing" means a borrowing consisting of simultaneous
Revolving Loans of the same Type and having the same Interest Period made by
each of the Lenders pursuant to Section 2.01.

         "Revolving Loan" has the meaning specified in Section 2.01.

         "Revolving Loan Note" means a promissory note made by the Borrower in
favor of a Lender evidencing Revolving Loans made by such Lender, substantially
in the form of Exhibit C.

         "Revolving Loan Notice" means a notice of (a) a Borrowing, (b) a
conversion of Loans from one Type to the other, or (c) a continuation of Loans
as the same Type, pursuant to Section 2.02(a), which, if in writing, shall be
substantially in the form of Exhibit A.

                                       17
<PAGE>   23

         "S&P" means Standard & Poor's Ratings Services, a division of The
McGraw-Hill Companies, Inc.

         "Shareholders' Equity" means, as of any date of determination for the
Borrower and its Subsidiaries on a consolidated basis, shareholders' equity as
of that date determined in accordance with GAAP.

         "Solvent" mean, with respect to any Person, that the fair value of the
assets of such Person (both at fair valuation and at present fair saleable value
on a going concern basis) is, on the date of determination, greater than the
total amount of liabilities (including contingent and unliquidated liabilities)
of such Person as of such date and that, as of such date, such Person is able to
pay all liabilities of such Person as such liabilities mature and such Person
does not have unreasonably small capital with which to carry on its business. In
computing the amount of contingent or unliquidated liabilities at any time, such
liabilities will be computed at the amount which, in light of all the facts and
circumstances existing at such time, represents the amount that can reasonably
be expected to become an actual or matured liability discounted to present value
at rates believe to be reasonable by such Person.

         "Subsidiary" of a Person means a corporation, partnership, joint
venture, limited liability company or other business entity of which a majority
of the shares of securities or other interests having ordinary voting power for
the election of directors or other governing body (other than securities or
interests having such power only by reason of the happening of a contingency)
are at the time beneficially owned, or the management of which is otherwise
controlled, directly, or indirectly through one or more intermediaries, or both,
by such Person. Unless otherwise specified, all references herein to a
"Subsidiary" or to "Subsidiaries" shall refer to a Subsidiary or Subsidiaries of
the Borrower.

         "Swap Contract" means (a) any and all rate swap transactions, basis
swaps, credit derivative transactions, forward rate transactions, commodity
swaps, commodity options, forward commodity contracts, equity or equity index
swaps or options, bond or bond price or bond index swaps or options or forward
bond or forward bond price or forward bond index transactions, interest rate
options, forward foreign exchange transactions, cap transactions, floor
transactions, collar transactions, currency swap transactions, cross-currency
rate swap transactions, currency options, spot contracts, any cancellations, buy
backs, reversals, terminations or assignments of any of the foregoing, or any
other similar transactions or any combination of any of the foregoing (including
any options to enter into any of the foregoing), whether or not any such
transaction is governed by or subject to any master agreement, and (b) any and
all transactions of any kind, and the related confirmations, which are subject
to the terms and conditions of, or governed by, any form of master agreement
published by the International Swaps and Derivatives Association, Inc., any
International Foreign Exchange Master Agreement, or any other master agreement
(any such master agreement, together with any related schedules, a "Master
Agreement"), including any such obligations or liabilities under any Master
Agreement.

         "Swap Termination Value" means, in respect of any one or more Swap
Contracts, after taking into account the effect of any legally enforceable
netting agreement relating to such Swap Contracts, (a) for any date on or after
the date such Swap Contracts have been closed out and

                                       18
<PAGE>   24

termination value(s) determined in accordance therewith, such termination
value(s), and (b) for any date prior to the date referenced in clause (a) the
amount(s) determined as the mark-to-market value(s) for such Swap Contracts, as
determined based upon one or more mid-market or other readily available
quotations provided by any recognized dealer in such Swap Contracts (which may
include any Lender).

         "Swing Line" means the revolving credit facility made available by the
Swing Line Lender pursuant to Section 2.04.

         "Swing Line Borrowing" means a borrowing of a Swing Line Loan.

         "Swing Line Lender" means Bank of America in its capacity as provider
of Swing Line Loans, or any successor swing line lender hereunder.

         "Swing Line Loan" has the meaning specified in Section 2.04(a).

         "Swing Line Note" means a promissory note made by the Borrower in favor
of the Swing Line Lender evidencing Swing Line Loans made by such Lender,
substantially in the form of Exhibit D.

         "Swing Line Loan Notice" means a notice of a Swing Line Borrowing
pursuant to Section 2.04(b), which, if in writing, shall be substantially in the
form of Exhibit B.

         "Swing Line Sublimit" means an amount equal to the lesser of (a)
$10,000,000 and (b) the Aggregate Commitments. The Swing Line Sublimit is part
of, and not in addition to, the Aggregate Commitments.

         "Syndication Agent" means First Union National Bank, in its capacity as
syndication agent under any of the Loan Documents.

         "Synthetic Lease Obligation" means the monetary obligation of a Person
under (a) a so-called synthetic, off-balance sheet or tax retention lease, or
(b) an agreement for the use or possession of property creating obligations that
do not appear on the balance sheet of such Person but which, upon the insolvency
or bankruptcy of such Person, would be characterized as the indebtedness of such
Person (without regard to accounting treatment).

         "Tax Abatement Disposition" means the disposition by the Borrower or
any of its Subsidiaries to a Governmental Authority of any property in exchange
for tax abatements to be granted to the Borrower or such Subsidiary on such
property; provided that (a) the Borrower or such Subsidiary leases such property
from such Governmental Authority and (b) at the conclusion of the tax abatement
the Borrower or such Subsidiary shall obtain title to such property for nominal
or no consideration.

         "Taxes" has the meaning set forth in Section 3.01(a).

         "Treasury Stock Purchase" means any purchase, redemption, retirement,
cancellation, defeasance or other acquisition (including any sinking fund or
similar deposit for such purpose)

                                       19
<PAGE>   25

by the Borrower or any Subsidiary of its Capital Stock or any warrants, rights
or options to acquire such Capital Stock.

         "Type" means with respect to a Revolving Loan, its character as a Base
Rate Loan or a Eurodollar Rate Loan.

         "Unfunded Pension Liability" means the excess of a Pension Plan's
benefit liabilities under Section 4001(a)(16) of ERISA, over the current value
of that Pension Plan's assets, determined in accordance with the assumptions
used for funding the Pension Plan pursuant to Section 412 of the Code for the
applicable plan year.

         "Unreimbursed Amount" has the meaning set forth in Section 2.03(c)(i).

         "Voting Percentage" means, as to any Lender, (a) at any time when the
Commitments are in effect, such Lender's Pro Rata Share and (b) at any time
after the termination of the Commitments, the percentage (carried out to the
ninth decimal place) which (i) the sum of (A) the Outstanding Amount of such
Lender's Revolving Loans, plus (B) such Lender's Pro Rata Share of the
Outstanding Amount of L/C Obligations, plus (C) such Lender's Pro Rata Share of
the Outstanding Amount of Swing Line Loans, then constitutes of (ii) the
Outstanding Amount of all Loans and L/C Obligations; provided, however, that if
any Lender has failed to fund any portion of the Revolving Loans, participations
in L/C Obligations or participations in Swing Line Loans required to be funded
by it hereunder, such Lender's Voting Percentage shall be deemed to be zero, and
the respective Pro Rata Shares and Voting Percentages of the other Lenders shall
be recomputed for purposes of this definition and the definition of "Required
Lenders" without regard to such Lender's Commitment or the outstanding amount of
its Revolving Loans, L/C Advances and funded participations in Swing Line Loans,
as the case may be.

         1.02 OTHER INTERPRETIVE PROVISIONS.

         (a) The meanings of defined terms are equally applicable to the
singular and plural forms of the defined terms.

         (b)

                  (i) The words "herein" and "hereunder" and words of similar
         import when used in any Loan Document shall refer to such Loan Document
         as a whole and not to any particular provision thereof.

                  (ii) Unless otherwise specified herein, Article, Section,
         Exhibit and Schedule references are to this Agreement.

                  (iii) The term "including" is by way of example and not
         limitation.

                  (iv) The term "documents" includes any and all instruments,
         documents, agreements, certificates, notices, reports, financial
         statements and other writings, however evidenced.

                                       20
<PAGE>   26

         (c) In the computation of periods of time from a specified date to a
later specified date, the word "from" means "from and including;" the words "to"
and "until" each mean "to but excluding;" and the word "through" means "to and
including."

         (d) Section headings herein and the other Loan Documents are included
for convenience of reference only and shall not affect the interpretation of
this Agreement or any other Loan Document.

         1.03 ACCOUNTING TERMS. All accounting terms not specifically or
completely defined herein shall be construed in conformity with, and all
financial data required to be submitted pursuant to this Agreement shall be
prepared in conformity with, GAAP applied on a consistent basis, as in effect
from time to time, applied in a manner consistent with that used in preparing
the Audited Financial Statements, except as otherwise specifically prescribed
herein.

         1.04 ROUNDING. Any financial ratios required to be maintained by the
Borrower pursuant to this Agreement shall be calculated by dividing the
appropriate component by the other component, carrying the result to one place
more than the number of places by which such ratio is expressed herein and
rounding the result up or down to the nearest number (with a rounding-up if
there is no nearest number).

         1.05 REFERENCES TO AGREEMENTS AND LAWS. Unless otherwise expressly
provided herein, (a) references to agreements (including the Loan Documents) and
other contractual instruments shall be deemed to include all subsequent
amendments, restatements, extensions, supplements and other modifications
thereto, but only to the extent that such amendments, restatements, extensions,
supplements and other modifications are not prohibited by any Loan Document; and
(b) references to any Law shall include all statutory and regulatory provisions
consolidating, amending, replacing, supplementing or interpreting such Law.

                                  ARTICLE II.
                      THE COMMITMENTS AND CREDIT EXTENSIONS

         2.01 REVOLVING LOANS. Subject to the terms and conditions set forth
herein, each Lender severally agrees to make loans (each such loan, a "Revolving
Loan") to the Borrower from time to time on any Business Day during the period
from the Closing Date to the Maturity Date, in an aggregate amount not to exceed
at any time outstanding the amount of such Lender's Commitment; provided,
however, that after giving effect to any Revolving Borrowing, (i) the aggregate
Outstanding Amount of all Loans and L/C Obligations shall not exceed the
Aggregate Commitments, and (ii) the aggregate Outstanding Amount of the
Revolving Loans of any Lender, plus such Lender's Pro Rata Share of the
Outstanding Amount of all L/C Obligations, plus such Lender's Pro Rata Share of
the Outstanding Amount of all Swing Line Loans shall not exceed such Lender's
Commitment. Within the limits of each Lender's Commitment, and subject to the
other terms and conditions hereof, the Borrower may borrow under this Section
2.01, prepay under Section 2.05, and reborrow under this Section 2.01. Revolving
Loans may be Base Rate Loans or Eurodollar Rate Loans, as further provided
herein.

                                       21
<PAGE>   27

         2.02 BORROWINGS, CONVERSIONS AND CONTINUATIONS OF COMMITTED LOANS.

         (a) Each Revolving Borrowing, each conversion of Revolving Loans from
one Type to the other, and each continuation of Revolving Loans as the same Type
shall be made upon the Borrower's irrevocable notice to the Administrative
Agent, which may be given by telephone. Each such notice must be received by the
Administrative Agent not later than 10:00 a.m., Dallas, Texas time (i) three
Business Days prior to the requested date of any Borrowing of, conversion to or
continuation of Eurodollar Rate Loans or of any conversion of Eurodollar Rate
Loans to Base Rate Loans, and (ii) on the requested date of any Borrowing of
Base Rate Loans. Each such telephonic notice must be confirmed promptly by
delivery to the Administrative Agent of a written Revolving Loan Notice,
appropriately completed and signed by a Responsible Officer of the Borrower.
Each Revolving Borrowing of, conversion to or continuation of Eurodollar Rate
Loans shall be in a principal amount of $5,000,000 or a whole multiple of
$1,000,000 in excess thereof. Each Revolving Borrowing of or conversion to Base
Rate Loans shall be in a principal amount of $500,000 or a whole multiple of
$100,000 in excess thereof. Each Revolving Loan Notice (whether telephonic or
written) shall specify (i) whether the Borrower is requesting a Revolving
Borrowing, a conversion of Revolving Loans from one Type to the other, or a
continuation of Revolving Loans as the same Type, (ii) the requested date of the
Borrowing, conversion or continuation, as the case may be (which shall be a
Business Day), (iii) the principal amount of Revolving Loans to be borrowed,
converted or continued, (iv) the Type of Revolving Loans to be borrowed or to
which existing Revolving Loans are to be converted, and (v) if applicable, the
duration of the Interest Period with respect thereto. If the Borrower fails to
specify a Type of Revolving Loan in a Revolving Loan Notice or if the Borrower
fails to give a timely notice requesting a conversion or continuation, then the
applicable Revolving Loans shall be made or continued as, or converted to, Base
Rate Loans. Any such automatic conversion to Base Rate Loans shall be effective
as of the last day of the Interest Period then in effect with respect to the
applicable Eurodollar Rate Loans. If the Borrower requests a Borrowing of,
conversion to, or continuation of Eurodollar Rate Loans in any such Revolving
Loan Notice, but fails to specify an Interest Period, it will be deemed to have
specified an Interest Period of one month.

         (b) Following receipt of a Revolving Loan Notice, the Administrative
Agent shall promptly notify each Lender of its Pro Rata Share of the applicable
Revolving Loans, and if no timely notice of a conversion or continuation is
provided by the Borrower, the Administrative Agent shall notify each Lender of
the details of any automatic conversion to Base Rate Loans described in the
preceding subsection. In the case of a Revolving Borrowing, each Lender shall
make the amount of its Revolving Loan available to the Administrative Agent in
immediately available funds at the Administrative Agent's Office not later than
12:00 noon, Dallas, Texas time, on the Business Day specified in the applicable
Revolving Loan Notice. Upon satisfaction of the applicable conditions set forth
in Section 4.02 (and, if such Borrowing is the initial Credit Extension, Section
4.01), the Administrative Agent shall make all funds so received available to
the Borrower in like funds as received by the Administrative Agent either by (i)
crediting the account of the Borrower on the books of Bank of America with the
amount of such funds or (ii) wire transfer of such funds, in each case in
accordance with instructions provided to the Administrative Agent by the
Borrower; provided, however, that if, on the date of the Revolving Borrowing
there are Swing Line Loans and/or L/C Borrowings outstanding, then the proceeds
of

                                       22
<PAGE>   28

such Borrowing shall be applied, first, to the payment in full of any such L/C
Borrowings, second, to the payment in full of any such Swing Line Loans, and
third, to the Borrower as provided above.

         (c) Except as otherwise provided herein, a Eurodollar Rate Loan may be
continued or converted only on the last day of the Interest Period for such
Eurodollar Rate Loan. During the existence of a Default or Event of Default, no
Revolving Loans may be requested as, converted to or continued as Eurodollar
Rate Loans without the consent of the Required Lenders, and the Required Lenders
may demand that any or all of the then outstanding Eurodollar Rate Loans be
converted immediately to Base Rate Loans.

         (d) The Administrative Agent shall promptly notify the Borrower and the
Lenders of the interest rate applicable to any Eurodollar Rate Revolving Loan
upon determination of such interest rate. The determination of the Eurodollar
Rate by the Administrative Agent shall be conclusive in the absence of manifest
error. The Administrative Agent shall notify the Borrower and the Lenders of any
change in Bank of America's prime rate used in determining the Base Rate
promptly following the public announcement of such change.

         (e) After giving effect to all Revolving Borrowings, all conversions of
Revolving Loans from one Type to the other, and all continuations of Revolving
Loans as the same Type, there shall not be more than five Interest Periods in
effect with respect to Revolving Loans.

         2.03 LETTERS OF CREDIT.

         (a) The Letter of Credit Commitment.

                  (i) Subject to the terms and conditions set forth herein, (A)
         the L/C Issuer agrees, in reliance upon the agreements of the other
         Lenders set forth in this Section 2.03, (1) from time to time on any
         Business Day during the period from the Closing Date until the Letter
         of Credit Expiration Date, to issue Letters of Credit for the account
         of the Borrower or certain Subsidiaries, and to amend or renew Letters
         of Credit previously issued by it, in accordance with subsection (b)
         below, and (2) to honor drafts under the Letters of Credit; and (B) the
         Lenders severally agree to participate in Letters of Credit issued for
         the account of the Borrower; provided that the L/C Issuer shall not be
         obligated to make any L/C Credit Extension with respect to any Letter
         of Credit, and no Lender shall be obligated to participate in, any
         Letter of Credit if as of the date of such L/C Credit Extension, (x)
         the Outstanding Amount of all L/C Obligations and all Loans would
         exceed the Aggregate Commitments, (y) the aggregate Outstanding Amount
         of the Revolving Loans of any Lender, plus such Lender's Pro Rata Share
         of the Outstanding Amount of all L/C Obligations, plus such Lender's
         Pro Rata Share of the Outstanding Amount of all Swing Line Loans would
         exceed such Lender's Commitment, or (z) the Outstanding Amount of the
         L/C Obligations would exceed the Letter of Credit Sublimit. Within the
         foregoing limits, and subject to the terms and conditions hereof, the
         Borrower's ability to obtain Letters of Credit shall be fully
         revolving, and accordingly the Borrower may, during the foregoing
         period, obtain Letters of Credit to replace Letters of Credit that have
         expired or that have been drawn upon and reimbursed. All Existing

                                       23
<PAGE>   29

         Letters of Credit shall be deemed to have been issued pursuant hereto,
         and from and after the Closing Date shall be subject to and governed by
         the terms and conditions hereof.

                  (ii) The L/C Issuer shall be under no obligation to issue any
         Letter of Credit if:

                           (A) any order, judgment or decree of any Governmental
                  Authority or arbitrator shall by its terms purport to enjoin
                  or restrain the L/C Issuer from issuing such Letter of Credit,
                  or any Law applicable to the L/C Issuer or any request or
                  directive (whether or not having the force of law) from any
                  Governmental Authority with jurisdiction over the L/C Issuer
                  shall prohibit, or request that the L/C Issuer refrain from,
                  the issuance of letters of credit generally or such Letter of
                  Credit in particular or shall impose upon the L/C Issuer with
                  respect to such Letter of Credit any restriction, reserve or
                  capital requirement (for which the L/C Issuer is not otherwise
                  compensated hereunder) not in effect on the Closing Date, or
                  shall impose upon the L/C Issuer any unreimbursed loss, cost
                  or expense which was not applicable on the Closing Date and
                  which the L/C Issuer in good faith deems material to it;

                           (B) subject to Section 2.03(b)(iii), the expiry date
                  of such requested Letter of Credit would occur more than
                  fifteen months after the date of issuance or last renewal,
                  unless the Required Lenders have approved such expiry date;

                           (C) the expiry date of such requested Letter of
                  Credit would occur after the Letter of Credit Expiration Date,
                  unless all the Lenders have approved such expiry date;

                           (D) the issuance of such Letter of Credit would
                  violate one or more policies of the L/C Issuer; or

                           (E) such Letter of Credit is in a face amount less
                  than $100,000, in the case of a commercial Letter of Credit,
                  or $500,000, in the case of any other type of Letter of
                  Credit, or is to be denominated in a currency other than
                  Dollars.

                  (iii) The L/C Issuer shall be under no obligation to amend any
         Letter of Credit if (A) the L/C Issuer would have no obligation at such
         time to issue such Letter of Credit in its amended form under the terms
         hereof, or (B) the beneficiary of such Letter of Credit does not accept
         the proposed amendment to such Letter of Credit.

         (b) Procedures for Issuance and Amendment of Letters of Credit;
Evergreen Letters of Credit.

                  (i) Each Letter of Credit shall be issued or amended, as the
         case may be, upon the request of the Borrower delivered to the L/C
         Issuer (with a copy to the Administrative Agent) in the form of a
         Letter of Credit Application, appropriately completed and signed by a
         Responsible Officer of the Borrower. Such L/C Application must be
         received by the L/C Issuer and the Administrative Agent not later than
         10:00 a.m., Dallas, Texas time, at least two Business Days (or such
         later date and time as the L/C Issuer may agree in a

                                       24
<PAGE>   30

         particular instance in its sole discretion) prior to the proposed
         issuance date or date of amendment, as the case may be. In the case of
         a request for an initial issuance of a Letter of Credit, such Letter of
         Credit Application shall specify in form and detail satisfactory to the
         L/C Issuer: (A) the proposed issuance date of the requested Letter of
         Credit (which shall be a Business Day); (B) the amount thereof; (C) the
         expiry date thereof; (D) the name and address of the beneficiary
         thereof; (E) the documents to be presented by such beneficiary in case
         of any drawing thereunder; (F) the full text of any certificate to be
         presented by such beneficiary in case of any drawing thereunder; and
         (G) such other matters as the L/C Issuer may require. In the case of a
         request for an amendment of any outstanding Letter of Credit, such
         Letter of Credit Application shall specify in form and detail
         satisfactory to the L/C Issuer (A) the Letter of Credit to be amended;
         (B) the proposed date of amendment thereof (which shall be a Business
         Day); (C) the nature of the proposed amendment; and (D) such other
         matters as the L/C Issuer may require.

                  (ii) Promptly after receipt of any Letter of Credit
         Application, the L/C Issuer will confirm with the Administrative Agent
         (by telephone or in writing) that the Administrative Agent has received
         a copy of such Letter of Credit Application from the Borrower and, if
         not, the L/C Issuer will provide the Administrative Agent with a copy
         thereof. Upon receipt by the L/C Issuer of confirmation from the
         Administrative Agent that the requested issuance or amendment is
         permitted in accordance with the terms hereof, then, subject to the
         terms and conditions hereof, the L/C Issuer shall, on the requested
         date, issue a Letter of Credit for the account of the Borrower or one
         of its Subsidiaries or enter into the applicable amendment, as the case
         may be, in each case in accordance with the L/C Issuer's usual and
         customary business practices. Immediately upon the issuance of each
         Letter of Credit, each Lender shall be deemed to, and hereby
         irrevocably and unconditionally agrees to, purchase from the L/C Issuer
         a participation in such Letter of Credit in an amount equal to the
         product of such Lender's Pro Rata Share times the amount of such Letter
         of Credit.

                  (iii) If the Borrower so requests in any applicable Letter of
         Credit Application, the L/C Issuer may, in it sole and absolute
         discretion, agree to issue a Letter of Credit that has automatic
         renewal provisions (each, an "Evergreen Letter of Credit"); provided
         that any such Evergreen Letter of Credit must permit the L/C Issuer to
         prevent any such renewal at least once in each twelve-month period
         (commencing with the date of issuance of such Letter of Credit) by
         giving prior notice to the beneficiary thereof not later than a day
         (the "Nonrenewal Notice Date") in each such twelve-month period to be
         agreed upon at the time such Letter of Credit is issued. Unless
         otherwise directed by the L/C Issuer, the Borrower shall not be
         required to make a specific request to the L/C Issuer for any such
         renewal. Once an Evergreen Letter of Credit has been issued, the
         Lenders shall be deemed to have authorized (but may not require) the
         L/C Issuer to permit the renewal of such Letter of Credit at any time
         to a date not later than the Letter of Credit Expiration Date;
         provided, however, that the L/C Issuer shall not permit any such
         renewal if (A) the L/C Issuer would have no obligation at such time to
         issue such Letter of Credit in its renewed form under the terms hereof,
         or (B) it has received notice (which may be by telephone or in writing)
         on or before the Business Day immediately preceding the Nonrenewal
         Notice Date (1) from the Administrative Agent that the Required Lenders

                                       25
<PAGE>   31

         have elected not to permit such renewal or (2) from the Administrative
         Agent, any Lender or the Borrower that one or more of the applicable
         conditions specified in Section 4.02 is not then satisfied.
         Notwithstanding anything to the contrary contained herein, the L/C
         Issuer shall have no obligation to permit the renewal of any Evergreen
         Letter of Credit at any time.

                  (iv) Promptly after its delivery of any Letter of Credit or
         any amendment to a Letter of Credit to an advising bank with respect
         thereto or to the beneficiary thereof, the L/C Issuer will also deliver
         to the Borrower and the Administrative Agent a true and complete copy
         of such Letter of Credit or amendment.

         (c) Drawings and Reimbursements; Funding of Participations.

                  (i) Upon any drawing under any Letter of Credit, the L/C
         Issuer shall notify the Borrower and the Administrative Agent thereof.
         Promptly after any payment by the L/C Issuer under a Letter of Credit
         (each such date, an "Honor Date"), the Borrower shall reimburse the L/C
         Issuer through the Administrative Agent in an amount equal to the
         amount of such drawing. If the Borrower fails to so reimburse the L/C
         Issuer by 10:00 a.m., Dallas, Texas time, on the Honor Date, the
         Administrative Agent shall promptly notify each Lender of the Honor
         Date, the amount of the unreimbursed drawing (the "Unreimbursed
         Amount"), and such Lender's Pro Rata Share thereof. In such event, the
         Borrower shall be deemed to have requested a Revolving Borrowing of
         Base Rate Loans to be disbursed on the Honor Date in an amount equal to
         the Unreimbursed Amount, without regard to the minimum and multiples
         specified in Section 2.02 for the principal amount of Base Rate Loans,
         but subject to the amount of the unutilized portion of the Aggregate
         Commitments and the conditions set forth in Section 4.02 (other than
         the delivery of a Revolving Loan Notice). Any notice given by the L/C
         Issuer or the Administrative Agent pursuant to this Section 2.03(c)(i)
         may be given by telephone if immediately confirmed in writing; provided
         that the lack of such an immediate confirmation shall not affect the
         conclusiveness or binding effect of such notice.

                  (ii) Each Lender (including the Lender acting as L/C Issuer)
         shall upon any notice pursuant to Section 2.03(c)(i) make funds
         available to the Administrative Agent for the account of the L/C Issuer
         at the Administrative Agent's Office in an amount equal to its Pro Rata
         Share of the Unreimbursed Amount not later than 12:00 noon, Dallas,
         Texas time, on the Business Day specified in such notice by the
         Administrative Agent, whereupon, subject to the provisions of Section
         2.03(c)(iii), each Lender that so makes funds available shall be deemed
         to have made a Base Rate Loan to the Borrower in such amount. The
         Administrative Agent shall remit the funds so received to the L/C
         Issuer.

                  (iii) With respect to any Unreimbursed Amount that is not
         fully refinanced by a Revolving Borrowing of Base Rate Loans because
         the conditions set forth in Section 4.02 cannot be satisfied or for any
         other reason, the Borrower shall be deemed to have incurred from the
         L/C Issuer an L/C Borrowing in the amount of the Unreimbursed Amount
         that is not so refinanced, which L/C Borrowing shall be due and payable
         on demand (together with interest) and shall bear interest at the
         Default Rate. In such event, each Lender's

                                       26
<PAGE>   32

         payment to the Administrative Agent for the account of the L/C Issuer
         pursuant to Section 2.03(c)(ii) shall be deemed payment in respect of
         its participation in such L/C Borrowing and shall constitute an L/C
         Advance from such Lender in satisfaction of its participation
         obligation under this Section 2.03.

                  (iv) Until each Lender funds its Revolving Loan or L/C Advance
         pursuant to this Section 2.03(c) to reimburse the L/C Issuer for any
         amount drawn under any Letter of Credit, interest in respect of such
         Lender's Pro Rata Share of such amount shall be solely for the account
         of the L/C Issuer.

                  (v) Each Lender's obligation to make Revolving Loans or L/C
         Advances to reimburse the L/C Issuer for amounts drawn under Letters of
         Credit, as contemplated by this Section 2.03(c), shall be absolute and
         unconditional and shall not be affected by any circumstance, including
         (A) any set-off, counterclaim, recoupment, defense or other right which
         such Lender may have against the L/C Issuer, the Borrower or any other
         Person for any reason whatsoever; (B) the occurrence or continuance of
         a Default or Event of Default, or (C) any other occurrence, event or
         condition, whether or not similar to any of the foregoing. Any such
         reimbursement shall not relieve or otherwise impair the obligation of
         the Borrower to reimburse the L/C Issuer for the amount of any payment
         made by the L/C Issuer under any Letter of Credit, together with
         interest as provided herein.

                  (vi) If any Lender fails to make available to the
         Administrative Agent for the account of the L/C Issuer any amount
         required to be paid by such Lender pursuant to the foregoing provisions
         of this Section 2.03(c) by the time specified in Section 2.03(c)(ii),
         the L/C Issuer shall be entitled to recover from such Lender (acting
         through the Administrative Agent), on demand, such amount with interest
         thereon for the period from the date such payment is required to the
         date on which such payment is immediately available to the L/C Issuer
         at a rate per annum equal to the Federal Funds Rate from time to time
         in effect. A certificate of the L/C Issuer submitted to any Lender
         (through the Administrative Agent) with respect to any amounts owing
         under this clause (vi) shall be conclusive absent manifest error.

         (d) Repayment of Participations.

                  (i) At any time after the L/C Issuer has made a payment under
         any Letter of Credit and has received from any Lender such Lender's L/C
         Advance in respect of such payment in accordance with Section 2.03(c),
         if the Administrative Agent receives for the account of the L/C Issuer
         any payment related to such Letter of Credit (whether directly from the
         Borrower or otherwise, including proceeds of Cash Collateral applied
         thereto by the Administrative Agent), or any payment of interest
         thereon, the Administrative Agent will distribute to such Lender its
         Pro Rata Share thereof in the same funds as those received by the
         Administrative Agent.

                  (ii) If any payment received by the Administrative Agent for
         the account of the L/C Issuer pursuant to Section 2.03(c)(i) is
         required to be returned, each Lender shall pay

                                       27
<PAGE>   33

         to the Administrative Agent for the account of the L/C Issuer its Pro
         Rata Share thereof on demand of the Administrative Agent, plus interest
         thereon from the date of such demand to the date such amount is
         returned by such Lender, at a rate per annum equal to the Federal Funds
         Rate from time to time in effect.

         (e) Obligations Absolute. The obligation of the Borrower to reimburse
the L/C Issuer for each drawing under each Letter of Credit, and to repay each
L/C Borrowing and each drawing under a Letter of Credit that is refinanced by a
Borrowing of Revolving Loans, shall be absolute, unconditional and irrevocable,
and shall be paid strictly in accordance with the terms of this Agreement under
all circumstances, including the following:

                  (i) any lack of validity or enforceability of such Letter of
         Credit, this Agreement, or any other agreement or instrument relating
         thereto;

                  (ii) the existence of any claim, counterclaim, set-off,
         defense or other right that the Borrower may have at any time against
         any beneficiary or any transferee of such Letter of Credit (or any
         Person for whom any such beneficiary or any such transferee may be
         acting), the L/C Issuer or any other Person, whether in connection with
         this Agreement, the transactions contemplated hereby or by such Letter
         of Credit or any agreement or instrument relating thereto, or any
         unrelated transaction;

                  (iii) any draft, demand, certificate or other document
         presented under such Letter of Credit proving to be forged, fraudulent,
         invalid or insufficient in any respect or any statement therein being
         untrue or inaccurate in any respect; or any loss or delay in the
         transmission or otherwise of any document required in order to make a
         drawing under such Letter of Credit;

                  (iv) any payment by the L/C Issuer under such Letter of Credit
         against presentation of a draft or certificate that does not strictly
         comply with the terms of such Letter of Credit; or any payment made by
         the L/C Issuer under such Letter of Credit to any Person purporting to
         be a trustee in bankruptcy, debtor-in-possession, assignee for the
         benefit of creditors, liquidator, receiver or other representative of
         or successor to any beneficiary or any transferee of such Letter of
         Credit, including any arising in connection with any proceeding under
         any Debtor Relief Law; or

                  (v) any other circumstance or happening whatsoever, whether or
         not similar to any of the foregoing, including any other circumstance
         that might otherwise constitute a defense available to, or a discharge
         of, the Borrower.

         The Borrower shall promptly examine a copy of each Letter of Credit and
each amendment thereto that is delivered to it and, in the event of any claim of
noncompliance with the Borrower's instructions or other irregularity, the
Borrower will immediately notify the L/C Issuer. The Borrower shall be
conclusively deemed to have waived any such claim against the L/C Issuer and its
correspondents unless such notice is given as aforesaid.

                                       28
<PAGE>   34

         (f) Role of L/C Issuer. Each Lender and the Borrower agree that, in
paying any drawing under a Letter of Credit, the L/C Issuer shall not have any
responsibility to obtain any document (other than any sight draft, certificates
and documents expressly required by the Letter of Credit) or to ascertain or
inquire as to the validity or accuracy of any such document or the authority of
the Person executing or delivering any such document. No Agent-Related Person
nor any of the respective correspondents, participants or assignees of the L/C
Issuer shall be liable to any Lender for (i) any action taken or omitted in
connection herewith at the request or with the approval of the Lenders or the
Required Lenders, as applicable; (ii) any action taken or omitted in the absence
of gross negligence or willful misconduct; or (iii) the due execution,
effectiveness, validity or enforceability of any document or instrument related
to any Letter of Credit or Letter of Credit Application. The Borrower hereby
assumes all risks of the acts or omissions of any beneficiary or transferee with
respect to its use of any Letter of Credit; provided, however, that this
assumption is not intended to, and shall not, preclude the Borrower's pursuing
such rights and remedies as it may have against the beneficiary or transferee at
law or under any other agreement. No Agent-Related Person, nor any of the
respective correspondents, participants or assignees of the L/C Issuer, shall be
liable or responsible for any of the matters described in clauses (i) through
(v) of Section 2.03(e); provided, however, that anything in such clauses to the
contrary notwithstanding, the Borrower may have a claim against the L/C Issuer,
and the L/C Issuer may be liable to the Borrower, to the extent, but only to the
extent, of any direct, as opposed to consequential or exemplary, damages
suffered by the Borrower which the Borrower proves were caused by the L/C
Issuer's willful misconduct or gross negligence or the L/C Issuer's willful
failure to pay under any Letter of Credit after the presentation to it by the
beneficiary of a sight draft and certificate(s) strictly complying with the
terms and conditions of a Letter of Credit. In furtherance and not in limitation
of the foregoing, the L/C Issuer may accept documents that appear on their face
to be in order, without responsibility for further investigation, regardless of
any notice or information to the contrary, and the L/C Issuer shall not be
responsible for the validity or sufficiency of any instrument transferring or
assigning or purporting to transfer or assign a Letter of Credit or the rights
or benefits thereunder or proceeds thereof, in whole or in part, which may prove
to be invalid or ineffective for any reason.

         (g) Cash Collateral. Upon the request of the Administrative Agent, (i)
if the L/C Issuer has honored any full or partial drawing request under any
Letter of Credit and such drawing has resulted in an L/C Borrowing, or (ii) if,
as of the Letter of Credit Expiration Date, any Letter of Credit may for any
reason remain outstanding and partially or wholly undrawn, the Borrower shall
immediately Cash Collateralize the then Outstanding Amount of all L/C
Obligations (in an amount equal to such Outstanding Amount).

         (h) Applicability of ISP98 and UCP. Unless otherwise expressly agreed
by the L/C Issuer and the Borrower when a Letter of Credit is issued (including
any such agreement applicable to an Existing Letter of Credit), (i) the rules of
the "International Standby Practices 1998" published by the Institute of
International Banking Law & Practice (or such later version thereof as may be in
effect at the time of issuance) shall apply to each standby Letter of Credit,
and (ii) the rules of the Uniform Customs and Practice for Documentary Credits,
as most recently published by the International Chamber of Commerce (the "ICC")
at the time of issuance (including the ICC decision published by the Commission
on Banking Technique and Practice on

                                       29
<PAGE>   35

April 6, 1998 regarding the European single currency (euro)) shall apply to each
commercial Letter of Credit.

         (i) Letter of Credit Fees. The Borrower shall pay to the Administrative
Agent for the account of each Lender in accordance with its Pro Rata Share a
Letter of Credit fee for each Letter of Credit equal to the Applicable Rate
times the actual daily maximum amount available to be drawn under each Letter of
Credit. Such fee for each Letter of Credit shall be due and payable on the last
Business Day of each March, June, September and December, commencing with the
first such date to occur after the issuance of such Letter of Credit, and on the
Letter of Credit Expiration Date. If there is any change in the Applicable Rate
during any quarter, the actual daily amount of each Letter of Credit shall be
computed and multiplied by the Applicable Rate separately for each period during
such quarter that such Applicable Rate was in effect.

         (j) Fronting Fee and Documentary and Processing Charges Payable to L/C
Issuer. The Borrower shall pay directly to the L/C Issuer for its own account a
fronting fee in an amount with respect to each standby Letter of Credit, equal
to 1/8 of 1% per annum on the daily maximum amount available to be drawn
thereunder, due and payable quarterly in arrears on the last Business Day of
each March, June, September and December, commencing with the first such date to
occur after the issuance of such Letter of Credit, and on the Letter of Credit
Expiration Date. In addition, the Borrower shall pay directly to the L/C Issuer
for its own account the customary issuance, presentation, amendment and other
processing fees, and other standard costs and charges, of the L/C Issuer
relating to letters of credit as from time to time in effect. Such fees and
charges are due and payable on demand and are nonrefundable.

         (k) Conflict with Letter of Credit Application. In the event of any
conflict between the terms hereof and the terms of any Letter of Credit
Application, the terms hereof shall control.

         2.04 SWING LINE LOANS.

         (a) The Swing Line. Subject to the terms and conditions set forth
herein, the Swing Line Lender agrees to make loans (each such loan, a "Swing
Line Loan") to the Borrower from time to time on any Business Day during the
period from the Closing Date to the Maturity Date in an aggregate amount not to
exceed at any time outstanding the amount of the Swing Line Sublimit,
notwithstanding the fact that such Swing Line Loans, when aggregated with the
Outstanding Amount of Loans of the Swing Line Lender in its capacity as a Lender
of Loans, may exceed the amount of such Lender's Commitment; provided, however,
that after giving effect to any Swing Line Loan, (i) the aggregate Outstanding
Amount of all Loans and L/C Obligations shall not exceed the Aggregate
Commitments, and (ii) the aggregate Outstanding Amount of the Loans of any
Lender, plus such Lender's Pro Rata Share of the Outstanding Amount of all L/C
Obligations, plus such Lender's Pro Rata Share of the Outstanding Amount of all
Swing Line Loans shall not exceed such Lender's Commitment, and provided,
further, that the Swing Line Lender shall not make any Swing Line Loan to
refinance an outstanding Swing Line Loan. Within the foregoing limits, and
subject to the other terms and conditions hereof, the Borrower may borrow under
this Section 2.04, prepay under Section 2.05, and reborrow under this Section
2.04. Each Swing Line Loan shall be a Base Rate Loan. Immediately upon the
making of a Swing Line Loan, each Lender shall be deemed to, and hereby
irrevocably and

                                       30
<PAGE>   36

unconditionally agrees to, purchase from the Swing Line Lender a risk
participation in such Swing Line Loan in an amount equal to the product of such
Lender's Pro Rata Share times the amount of such Swing Line Loan.

         (b) Borrowing Procedures. Each Swing Line Borrowing shall be made upon
the Borrower's irrevocable notice to the Swing Line Lender and the
Administrative Agent, which may be given by telephone. Each such notice must be
received by the Swing Line Lender and the Administrative Agent not later than
12:00 noon, Dallas, Texas time, on the requested borrowing date, and shall
specify (i) the amount to be borrowed, which shall be a minimum of $100,000, and
(ii) the requested borrowing date, which shall be a Business Day. Each such
telephonic notice must be confirmed promptly by delivery to the Swing Line
Lender and the Administrative Agent of a written Swing Line Loan Notice,
appropriately completed and signed by a Responsible Officer of the Borrower.
Promptly after receipt by the Swing Line Lender of any telephonic Swing Line
Loan Notice, the Swing Line Lender will confirm with the Administrative Agent
(by telephone or in writing) that the Administrative Agent has also received
such Swing Line Loan Notice and, if not, the Swing Line Lender will notify the
Administrative Agent (by telephone or in writing) of the contents thereof.
Unless the Swing Line Lender has received notice (by telephone or in writing)
from the Administrative Agent (including at the request of any Lender) prior to
1:00 p.m., Dallas, Texas time, on the date of the proposed Swing Line Borrowing
(A) directing the Swing Line Lender not to make such Swing Line Loan as a result
of the limitations set forth in the first proviso to the first sentence of
Section 2.04(a), or (B) that one or more of the applicable conditions specified
in Article IV is not then satisfied, then, subject to the terms and conditions
hereof, the Swing Line Lender will, not later than 2:00 p.m., Dallas, Texas
time, on the borrowing date specified in such Swing Line Loan Notice, make the
amount of its Swing Line Loan available to the Borrower at its office by
crediting the account of the Borrower on the books of the Swing Line Lender in
immediately available funds.

         (c) Refinancing of Swing Line Loans.

                  (i) The Swing Line Lender at any time in its sole and absolute
         discretion may request, on behalf of the Borrower (which hereby
         irrevocably requests the Swing Line Lender to act on its behalf), that
         each Lender make a Base Rate Loan in an amount equal to such Lender's
         Pro Rata Share of the amount of Swing Line Loans then outstanding. Such
         request shall be made in accordance with the requirements of Section
         2.02, without regard to the minimum and multiples specified therein for
         the principal amount of Base Rate Loans, but subject to the unutilized
         portion of the Aggregate Commitments and the conditions set forth in
         Section 4.02. The Swing Line Lender shall furnish the Borrower with a
         copy of the applicable Loan Notice promptly after delivering such
         notice to the Administrative Agent. Each Lender shall make an amount
         equal to its Pro Rata Share of the amount specified in such Loan Notice
         available to the Administrative Agent in immediately available funds
         for the account of the Swing Line Lender at the Administrative Agent's
         Office not later than 12:00 noon, Dallas, Texas time, on the day
         specified in such Loan Notice, whereupon, subject to Section
         2.04(c)(ii), each Lender that so makes funds available shall be deemed
         to have made a Base Rate Loan to the Borrower in such amount. The
         Administrative Agent shall remit the funds so received to the Swing
         Line Lender.

                                       31
<PAGE>   37

                  (ii) If for any reason any Revolving Borrowing cannot be
         requested in accordance with Section 2.04(c)(i) or any Swing Line Loan
         cannot be refinanced by such a Revolving Borrowing, the Revolving Loan
         Notice submitted by the Swing Line Lender shall be deemed to be a
         request by the Swing Line Lender that each of the Lenders fund its
         participation in the relevant Swing Line Loan and each Lender's payment
         to the Administrative Agent for the account of the Swing Line Lender
         pursuant to Section 2.04(c)(i) shall be deemed payment in respect of
         such participation.

                  (iii) If any Lender fails to make available to the
         Administrative Agent for the account of the Swing Line Lender any
         amount required to be paid by such Lender pursuant to the foregoing
         provisions of this Section 2.04(c) by the time specified in Section
         2.04(c)(i), the Swing Line Lender shall be entitled to recover from
         such Lender (acting through the Administrative Agent), on demand, such
         amount with interest thereon for the period from the date such payment
         is required to the date on which such payment is immediately available
         to the Swing Line Lender at a rate per annum equal to the Federal Funds
         Rate from time to time in effect. A certificate of the Swing Line
         Lender submitted to any Lender (through the Administrative Agent) with
         respect to any amounts owing under this clause (iii) shall be
         conclusive absent manifest error.

                  (iv) Each Lender's obligation to make Revolving Loans or to
         purchase and fund participations in Swing Line Loans pursuant to this
         Section 2.04(c) shall be absolute and unconditional and shall not be
         affected by any circumstance, including (A) any set-off, counterclaim,
         recoupment, defense or other right which such Lender may have against
         the Swing Line Lender, the Borrower or any other Person for any reason
         whatsoever, (B) the occurrence or continuance of a Default or Event of
         Default, or (C) any other occurrence, event or condition, whether or
         not similar to any of the foregoing. Any such purchase of
         participations shall not relieve or otherwise impair the obligation of
         the Borrower to repay Swing Line Loans, together with interest as
         provided herein.

         (d) Repayment of Participations.

                  (i) At any time after any Lender has purchased and funded a
         participation in a Swing Line Loan, if the Swing Line Lender receives
         any payment on account of such Swing Line Loan, the Swing Line Lender
         will distribute to such Lender its Pro Rata Share of such payment
         (appropriately adjusted, in the case of interest payments, to reflect
         the period of time during which such Lender's participation was
         outstanding and funded) in the same funds as those received by the
         Swing Line Lender.

                  (ii) If any payment received by the Swing Line Lender in
         respect of principal or interest on any Swing Line Loan is required to
         be returned by the Swing Line Lender, each Lender shall pay to the
         Swing Line Lender its Pro Rata Share thereof on demand of the
         Administrative Agent, plus interest thereon from the date of such
         demand to the date such amount is returned, at a rate per annum equal
         to the Federal Funds Rate. The Administrative Agent will make such
         demand upon the request of the Swing Line Lender.

                                       32
<PAGE>   38

         (e) Interest for Account of Swing Line Lender. The Swing Line Lender
shall be responsible for invoicing the Borrower for interest on the Swing Line
Loans. Until each Lender funds its Committed Base Rate Loan or participation
pursuant to this Section 2.04 to refinance such Lender's Pro Rata Share of any
Swing Line Loan, interest in respect of such Pro Rata Share shall be solely for
the account of the Swing Line Lender.

         (f) Payments Directly to Swing Line Lender. The Borrower shall make all
payments of principal and interest in respect of the Swing Line Loans directly
to the Swing Line Lender.

         2.05 PREPAYMENTS.

         (a) The Borrower may, upon notice to the Administrative Agent, at any
time or from time to time voluntarily prepay Revolving Loans in whole or in part
without premium or penalty; provided that (i) such notice must be received by
the Administrative Agent not later than 10:00 a.m., Dallas, Texas time, (A)
three Business Days prior to any date of prepayment of Eurodollar Rate Loans,
and (B) on the date of prepayment of Base Rate Loans; (ii) any prepayment of
Eurodollar Rate Loans shall be in a principal amount of $5,000,000 or a whole
multiple of $1,000,000 in excess thereof; and (iii) any prepayment of Base Rate
Loans shall be in a principal amount of $500,000 or a whole multiple of $100,000
in excess thereof. Each such notice shall specify the date and amount of such
prepayment and the Type(s) of Revolving Loans to be prepaid. The Administrative
Agent will promptly notify each Lender of its receipt of each such notice, and
of such Lender's Pro Rata Share of such prepayment. If such notice is given by
the Borrower, the Borrower shall make such prepayment and the payment amount
specified in such notice shall be due and payable on the date specified therein.
Any prepayment of a Eurodollar Rate Loan shall be accompanied by all accrued
interest thereon, together with any additional amounts required pursuant to
Section 3.05. Each such prepayment shall be applied to the Revolving Loans of
the Lenders in accordance with their respective Pro Rata Shares.

         (b) The Borrower may, upon notice to the Swing Line Lender (with a copy
to the Administrative Agent), at any time or from time to time, voluntarily
prepay Swing Line Loans in whole or in part without premium or penalty; provided
that (i) such notice must be received by the Swing Line Lender and the
Administrative Agent not later than 12:00 noon, Dallas, Texas time, on the date
of the prepayment, and (ii) any such prepayment shall be in a minimum principal
amount of $100,000. Each such notice shall specify the date and amount of such
prepayment. If such notice is given by the Borrower, the Borrower shall make
such prepayment and the payment amount specified in such notice shall be due and
payable on the date specified therein.

         (c) If for any reason the Outstanding Amount of all Loans and L/C
Obligations at any time exceeds the Aggregate Commitments then in effect, the
Borrower shall immediately prepay Loans and/or Cash Collateralize the L/C
Obligations in an aggregate amount equal to such excess.

         2.06 REDUCTION OR TERMINATION OF COMMITMENTS. The Borrower may, upon
notice to the Administrative Agent, terminate the Aggregate Commitments, or
permanently reduce the Aggregate Commitments to an amount not less than the then
Outstanding Amount of all Loans

                                       33
<PAGE>   39

and L/C Obligations; provided that (i) any such notice shall be received by the
Administrative Agent not later than 11:00 a.m., five Business Days prior to the
date of termination or reduction, and (ii) any such partial reduction shall be
in an aggregate amount of $10,000,000 or any whole multiple of $1,000,000 in
excess thereof. The Administrative Agent shall promptly notify the Lenders of
any such notice of reduction or termination of the Aggregate Commitments. Once
reduced in accordance with this Section, the Commitments may not be increased.
Any reduction of the Aggregate Commitments shall be applied to the Commitment of
each Lender according to its Pro Rata Share. All commitment fees accrued until
the effective date of any termination of the Aggregate Commitments shall be paid
on the effective date of such termination.

         2.07 REPAYMENT OF LOANS.

         (a) The Borrower shall repay to the Lenders on the Maturity Date the
aggregate principal amount of Revolving Loans outstanding on such date.

         (b) The Borrower shall repay each Swing Line Loan on the earlier to
occur of (i) the date fourteen days after such Loan is made and (ii) the
Maturity Date.

         2.08 INTEREST.

         (a) Subject to the provisions of subsection (b) below, (i) each
Eurodollar Rate Loan shall bear interest on the outstanding principal amount
thereof for each Interest Period at a rate per annum equal to the Eurodollar
Rate for such Interest Period plus the Applicable Rate; (ii) each Base Rate Loan
other than a Swing Line Loan shall bear interest on the outstanding principal
amount thereof from the applicable borrowing date at a rate per annum equal to
the Base Rate plus the Applicable Rate; and (iii) each Swing Line Loan shall
bear interest on the outstanding principal amount thereof from the applicable
borrowing date at a rate per annum equal to the remainder of (A) the Base Rate
plus the Applicable Rate minus (B) 1%.

         (b) While any Event of Default exists or after acceleration, the
Borrower shall pay interest on the principal amount of all outstanding
Obligations at a fluctuating interest rate per annum at all times equal to the
Default Rate to the fullest extent permitted by Applicable Law. Accrued and
unpaid interest on past due amounts (including interest on past due interest)
shall be due and payable upon demand.

         (c) Interest on each Loan shall be due and payable in arrears on each
Interest Payment Date applicable thereto and at such other times as may be
specified herein. Interest hereunder shall be due and payable in accordance with
the terms hereof before and after judgment, and before and after the
commencement of any proceeding under any Debtor Relief Law.

         2.09 FEES.

         In addition to certain fees described in subsections (i) and (j) of
Section 2.03:

         (a) Commitment Fee. The Borrower shall pay to the Administrative Agent
for the account of each Lender in accordance with its Pro Rata Share, a
Commitment Fee (herein so called) equal to the Applicable Rate times the actual
daily amount by which the Aggregate

                                       34
<PAGE>   40

Commitments exceed the sum of (i) the Outstanding Amount of Revolving Loans and
(ii) the Outstanding Amount of L/C Obligations. The commitment fee shall accrue
at all times from the Closing Date until the Maturity Date and shall be due and
payable quarterly in arrears on the first Business Day of each January, April,
July, and October, commencing with the first such date to occur after the
Closing Date, and on the Maturity Date. The commitment fee shall be calculated
quarterly in arrears, and if there is any change in the Applicable Rate during
any quarter, the actual daily amount shall be computed and multiplied by the
Applicable Rate separately for each period during such quarter that such
Applicable Rate was in effect. The commitment fee shall accrue at all times,
including at any time during which one or more of the conditions in Article IV
is not met.

         (b) Arrangement and Agency Fees. The Borrower shall pay an arrangement
fee to the Arranger for the Arranger's own account, and shall pay an agency fee
to the Administrative Agent for the Administrative Agent's own account, in the
amounts and at the times specified in the letter agreement, dated September 27,
2000 (the "Agent/Arranger Fee Letter"), among the Borrower, the Arranger and the
Administrative Agent. Such fees shall be fully earned when paid and shall be
nonrefundable for any reason whatsoever.

         (c) Lenders' Upfront Fee. On the Closing Date, the Borrower shall pay
to the Administrative Agent, for the account of the Lenders in accordance with
their respective Pro Rata Shares, an upfront fee in an amount set forth in a
separate letter agreement (the "Lender Fee Letter") between the Borrower and the
Arranger. Such upfront fees are for the credit facilities committed by the
Lenders under this Agreement and are fully earned on the date paid. The upfront
fee paid to each Lender is solely for its own account and is nonrefundable for
any reason whatsoever.

         2.10 COMPUTATION OF INTEREST AND FEES. Computation of interest on Base
Rate Loans and the Commitment Fee shall be calculated on the basis of a year of
365 or 366 days, as the case may be, and the actual number of days elapsed.
Computation of all other types of interest and all fees (other than the
Commitment Fee) shall be calculated on the basis of a year of 360 days and the
actual number of days elapsed, which results in a higher yield to the payee
thereof than a method based on a year of 365 or 366 days. Interest shall accrue
on each Loan for the day on which the Loan is made, and shall not accrue on a
Loan, or any portion thereof, for the day on which the Loan or such portion is
paid, provided that any Loan that is repaid on the same day on which it is made
shall bear interest for one day.

         2.11 EVIDENCE OF DEBT.

         (a) The Credit Extensions made by each Lender shall be evidenced by one
or more accounts or records maintained by such Lender and by the Administrative
Agent in the ordinary course of business. The accounts or records maintained by
the Administrative Agent and each Lender shall be conclusive absent manifest
error of the amount of the Credit Extensions made by the Lenders to the Borrower
and the interest and payments thereon. Any failure so to record or any error in
doing so shall not, however, limit or otherwise affect the obligation of the
Borrower hereunder to pay any amount owing with respect to the Loans and L/C
Obligations. In the event of any conflict between the accounts and records
maintained by any Lender and the accounts and

                                       35
<PAGE>   41

records of the Administrative Agent in respect of such matters, the accounts and
records of such Lender shall control. Upon the request of any Lender made
through the Administrative Agent, such Lender's Loans may be evidenced by a
Revolving Loan Note and/or a Swing Line Note, as applicable, in addition to such
accounts or records. Each Lender may attach schedules to its Note(s) and endorse
thereon the date, Type (if applicable), amount and maturity of the applicable
Loans and payments with respect thereto.

         (b) In addition to the accounts and records referred to in subsection
(a), each Lender and the Administrative Agent shall maintain in accordance with
its usual practice accounts or records evidencing the purchases and sales by
such Lender of participations in Letters of Credit and Swing Line Loans. In the
event of any conflict between the accounts and records maintained by the
Administrative Agent and the accounts and records of any Lender in respect of
such matters, the accounts and records of the Administrative Agent shall
control.

         2.12 PAYMENTS GENERALLY.

         (a) All payments to be made by the Borrower shall be made without
condition or deduction for any counterclaim, defense, recoupment or setoff.
Except as otherwise expressly provided herein, all payments by the Borrower
hereunder shall be made to the Administrative Agent, for the account of the
respective Lenders to which such payment is owed, at the Administrative Agent's
Office in Dollars and in immediately available funds not later than 12:00 noon,
Dallas, Texas time, on the date specified herein. The Administrative Agent will
promptly distribute to each Lender its Pro Rata Share (or other applicable share
as provided herein) of such payment in like funds as received by wire transfer
to such Lender's Lending Office. All payments received by the Administrative
Agent after 12:00 noon, Dallas, Texas time, shall be deemed received on the next
succeeding Business Day and any applicable interest or fee shall continue to
accrue.

         (b) Subject to the definition of "Interest Period," if any payment to
be made by the Borrower shall come due on a day other than a Business Day,
payment shall be made on the next following Business Day, and such extension of
time shall be reflected in computing interest or fees, as the case may be.

         (c) If at any time insufficient funds are received by and available to
the Administrative Agent to pay fully all amounts of principal, L/C Borrowings,
interest and fees then due hereunder, such funds shall be applied (i) first,
toward costs and expenses (including Attorney Costs and amounts payable under
Article III) incurred by the Administrative Agent and each Lender, (ii) second,
toward repayment of interest and fees then due hereunder, ratably among the
parties entitled thereto in accordance with the amounts of interest and fees
then due to such parties, and (iii) third, toward repayment of principal and L/C
Borrowings then due hereunder, ratably among the parties entitled thereto in
accordance with the amounts of principal and L/C Borrowings then due to such
parties. To the extent that any payments are received under any Subsidiary
Guaranty, such payments shall be applied first, toward costs and expenses
(including Attorney Costs and amounts payable under Article III) incurred by the
Administrative Agent and each Lender, (ii) second, toward repayment of interest
and fees then due hereunder, ratably among the parties entitled thereto in
accordance with the amounts of interest and fees

                                       36
<PAGE>   42

then due to such parties, and (iii) third, toward repayment of principal and L/C
Borrowings then due hereunder and all other obligations guaranteed under such
Subsidiary Guaranty, ratably among the Guarantied Parties (as defined in such
Subsidiary Guaranty) in accordance with the amounts of principal and L/C
Borrowings and such other obligations guaranteed under such Subsidiary Guaranty
then due to such parties.

         (d) Unless the Borrower or any Lender has notified the Administrative
Agent prior to the date any payment is required to be made by it to the
Administrative Agent hereunder, that the Borrower or such Lender, as the case
may be, will not make such payment, the Administrative Agent may assume that the
Borrower or such Lender, as the case may be, has timely made such payment and
may (but shall not be so required to), in reliance thereon, make available a
corresponding amount to the Person entitled thereto. If and to the extent that
such payment was not in fact made to the Administrative Agent in immediately
available funds, then:

                  (i) if the Borrower failed to make such payment, each Lender
         shall forthwith on demand repay to the Administrative Agent the portion
         of such assumed payment that was made available to such Lender in
         immediately available funds, together with interest thereon in respect
         of each day from and including the date such amount was made available
         by the Administrative Agent to such Lender to the date such amount is
         repaid to the Administrative Agent in immediately available funds, at
         the Federal Funds Rate from time to time in effect; and

                  (ii) if any Lender failed to make such payment, such Lender
         shall forthwith on demand pay to the Administrative Agent the amount
         thereof in immediately available funds, together with interest thereon
         for the period from the date such amount was made available by the
         Administrative Agent to the Borrower to the date such amount is
         recovered by the Administrative Agent (the "Compensation Period") at a
         rate per annum equal to the Federal Funds Rate from time to time in
         effect. If such Lender pays such amount to the Administrative Agent,
         then such amount shall constitute such Lender's Revolving Loan included
         in the applicable Borrowing. If such Lender does not pay such amount
         forthwith upon the Administrative Agent's demand therefor, the
         Administrative Agent may make a demand therefor upon the Borrower, and
         the Borrower shall pay such amount to the Administrative Agent,
         together with interest thereon for the Compensation Period at a rate
         per annum equal to the rate of interest applicable to the applicable
         Borrowing. Nothing herein shall be deemed to relieve any Lender from
         its obligation to fulfill its Commitment or to prejudice any rights
         which the Administrative Agent or the Borrower may have against any
         Lender as a result of any default by such Lender hereunder.

         A notice of the Administrative Agent to any Lender with respect to any
amount owing under this subsection (d) shall be conclusive, absent manifest
error.

         (e) If any Lender makes available to the Administrative Agent funds for
any Loan to be made by such Lender as provided in the foregoing provisions of
this Article II, and the conditions to the applicable Credit Extension set forth
in Article IV are not satisfied or waived in

                                       37
<PAGE>   43

accordance with the terms hereof, the Administrative Agent shall return such
funds (in like funds as received from such Lender) to such Lender, without
interest.

         (f) The obligations of the Lenders hereunder to make Revolving Loans
and to fund participations in Letters of Credit and Swing Line Loans are several
and not joint. The failure of any Lender to make any Revolving Loan or to fund
any such participation on any date required hereunder shall not relieve any
other Lender of its corresponding obligation to do so on such date, and no
Lender shall be responsible for the failure of any other Lender to so make its
Revolving Loan or purchase its participation.

         (g) Nothing herein shall be deemed to obligate any Lender to obtain the
funds for any Loan in any particular place or manner or to constitute a
representation by any Lender that it has obtained or will obtain the funds for
any Loan in any particular place or manner.

         2.13 SHARING OF PAYMENTS. If, other than as expressly provided
elsewhere herein, any Lender shall obtain on account of any Revolving Loans made
by it, or the participations in L/C Obligations or in Swing Line Loans held by
it, any payment (whether voluntary, involuntary, through the exercise of any
right of set-off, or otherwise) in excess of its ratable share (or other share
contemplated hereunder) thereof, such Lender shall immediately (a) notify the
Administrative Agent of such fact, and (b) purchase from the other Lenders such
participations in the Revolving Loans made by them and/or such subparticipations
in the participations in L/C Obligations or Swing Line Loans held by them, as
the case may be, as shall be necessary to cause such purchasing Lender to share
the excess payment in respect of such Revolving Loan or such participations, as
the case may be, pro rata with each of them; provided, however, that if all or
any portion of such excess payment is thereafter recovered from the purchasing
Lender, such purchase shall to that extent be rescinded and each other Lender
shall repay to the purchasing Lender the purchase price paid therefor, together
with an amount equal to such paying Lender's ratable share (according to the
proportion of (i) the amount of such paying Lender's required repayment to (ii)
the total amount so recovered from the purchasing Lender) of any interest or
other amount paid or payable by the purchasing Lender in respect of the total
amount so recovered. The Borrower agrees that any Lender so purchasing a
participation from another Lender may, to the fullest extent permitted by law,
exercise all its rights of payment (including the right of set-off, but subject
to Section 10.09 with respect to such participation as fully as if such Lender
were the direct creditor of the Borrower in the amount of such participation.
The Administrative Agent will keep records (which shall be conclusive and
binding in the absence of manifest error) of participations purchased under this
Section and will in each case notify the Lenders following any such purchases or
repayments. Each Lender that purchases a participation pursuant to this Section
shall from and after such purchase have the right to give all notices, requests,
demands, directions and other communications under this Agreement with respect
to the portion of the Obligations purchased to the same extent as though the
purchasing Lender were the original owner of the Obligations purchased. .

         2.14 INCREASE OF COMMITMENTS.

         (a) Upon notice to the Administrative Agent (which shall promptly
notify the Lenders), the Borrower may from time to time, request an increase in
the Aggregate

                                       38
<PAGE>   44

Commitments by up to $50,000,000 for an aggregate of $225,000,000. At the time
of sending such notice, the Borrower (in consultation with the Administrative
Agent) shall specify the time period within which each Lender is requested to
respond (which shall in no event be less than ten Business Days from the date of
delivery of such notice to the Lenders). Each Lender shall notify the
Administrative Agent within such time period whether or not it agrees to
increase its Commitment and, if so, whether by an amount equal to, greater than,
or less than its Pro Rata Share of such requested increase. Any Lender not
responding within such time period shall be deemed to have declined to increase
its Commitment. The Administrative Agent shall notify the Borrower and each
Lender of the Lenders' responses to each request made hereunder. To achieve the
full amount of a requested increase, the Borrower may also invite additional
Eligible Assignees to become Lenders pursuant to a joinder agreement in form and
substance satisfactory to the Administrative Agent and its counsel.

         (b) If any Commitments are increased in accordance with this Section,
the Administrative Agent and the Borrower shall determine the effective date of
such increase (the "Increase Effective Date"). The Administrative Agent and the
Borrower shall promptly notify the Lenders of the final allocation of such
increase and the Increase Effective Date. As a condition precedent to such
increase, the Borrower shall deliver to the Administrative Agent a certificate
of each Loan Party dated as of the Increase Effective Date (in sufficient copies
for each Lender) signed by a Responsible Officer of such Loan Party (i)
certifying and attaching the resolutions adopted by such Loan Party approving or
consenting to such increase, and, (ii) in the case of the Borrower, including a
Compliance Certificate demonstrating pro forma compliance with Section 7.13
after giving effect to such increase and (iii) certifying that, before and after
giving effect to such increase, the representations and warranties contained in
Article V are true and correct on and as of the Increase Effective Date and no
Default or Event of Default exists. The Borrower shall deliver new or amended
Revolving Loan Notes reflecting the increased Commitment of any Lender holding
or requesting a Revolving Note. The Administrative Agent shall distribute an
amended Schedule 2.01 (which shall be deemed incorporated into this Agreement),
to reflect any changes therein resulting from such increase. The Borrower shall
prepay any Revolving Loans outstanding on the Increase Effective Date (and pay
any additional amounts required pursuant to Section 3.05) to the extent
necessary to keep the outstanding Revolving Loans ratable with any revised Pro
Rata Shares arising from any nonratable increase in the Commitments under this
Section.

         (c) This Section shall supersede any provisions in Section 10.01 to the
contrary.

                                  ARTICLE III.
                     TAXES, YIELD PROTECTION AND ILLEGALITY

         3.01 TAXES.

         (a) Any and all payments by the Borrower to or for the account of the
Administrative Agent or any Lender under any Loan Document shall be made free
and clear of and without deduction for any and all present or future taxes,
duties, levies, imposts, deductions, assessments, fees, withholdings or similar
charges, and all liabilities with respect thereto, excluding, in the case of the
Administrative Agent and each Lender, taxes imposed on or measured by its net

                                       39
<PAGE>   45

income, and franchise taxes imposed on it (in lieu of net income taxes), by the
jurisdiction (or any political subdivision thereof) under the Laws of which the
Administrative Agent or such Lender, as the case may be, is organized or
maintains a lending office (all such non-excluded taxes, duties, levies,
imposts, deductions, assessments, fees, withholdings or similar charges, and
liabilities being hereinafter referred to as "Taxes"). If the Borrower shall be
required by any Laws to deduct any Taxes from or in respect of any sum payable
under any Loan Document to the Administrative Agent or any Lender, (i) the sum
payable shall be increased as necessary so that after making all required
deductions (including deductions applicable to additional sums payable under
this Section), the Administrative Agent and such Lender receives an amount equal
to the sum it would have received had no such deductions been made, (ii) the
Borrower shall make such deductions, (iii) the Borrower shall pay the full
amount deducted to the relevant taxation authority or other authority in
accordance with applicable Laws, and (iv) within 30 days after the date of such
payment, the Borrower shall furnish to the Administrative Agent (which shall
forward the same to such Lender) the original or a certified copy of a receipt
evidencing payment thereof.

         (b) In addition, the Borrower agrees to pay any and all present or
future stamp, court or documentary taxes and any other excise or property taxes
or charges or similar levies which arise from any payment made under any Loan
Document or from the execution, delivery, performance, enforcement or
registration of, or otherwise with respect to, any Loan Document (hereinafter
referred to as "Other Taxes").

         (c) If the Borrower shall be required to deduct or pay any Taxes or
Other Taxes from or in respect of any sum payable under any Loan Document to the
Administrative Agent or any Lender, the Borrower shall also pay to the
Administrative Agent (for the account of such Lender) or to such Lender, at the
time interest is paid, such additional amount that such Lender specifies as
necessary to preserve the after-tax yield (after factoring in all taxes,
including taxes imposed on or measured by net income) such Lender would have
received if such Taxes or Other Taxes had not been imposed.

         (d) The Borrower agrees to indemnify the Administrative Agent and each
Lender for (i) the full amount of Taxes and Other Taxes (including any Taxes or
Other Taxes imposed or asserted by any jurisdiction on amounts payable under
this Section) paid by the Administrative Agent and such Lender, (ii) amounts
payable under Section 3.01(c) and (iii) any liability (including penalties,
interest and expenses) arising therefrom or with respect thereto, in each case
whether or not such Taxes or Other Taxes were correctly or legally imposed or
asserted by the relevant Governmental Authority. Payment under this subsection
(d) shall be made within 30 days after the date the Lender or the Administrative
Agent makes a demand therefor.

         3.02 ILLEGALITY. If any Lender determines that any Law has made it
unlawful, or that any Governmental Authority has asserted that it is unlawful,
for any Lender or its applicable Lending Office to make, maintain or fund
Eurodollar Rate Loans, or materially restricts the authority of such Lender to
purchase or sell, or to take deposits of, Dollars in the applicable offshore
Dollar market, or to determine or charge interest rates based upon the
Eurodollar Rate, then, on notice thereof by such Lender to the Borrower through
the Administrative Agent, any obligation of such Lender to make or continue
Eurodollar Rate Loans or to convert Base Rate

                                       40
<PAGE>   46

Loans to Eurodollar Rate Loans shall be suspended until such Lender notifies the
Administrative Agent and the Borrower that the circumstances giving rise to such
determination no longer exist. Upon receipt of such notice, the Borrower shall,
upon demand from such Lender (with a copy to the Administrative Agent), prepay
or, if applicable, convert all Eurodollar Rate Loans of such Lender to Base Rate
Loans, either on the last day of the Interest Period thereof, if such Lender may
lawfully continue to maintain such Eurodollar Rate Loans to such day, or
immediately, if such Lender may not lawfully continue to maintain such
Eurodollar Rate Loans. Upon any such prepayment or conversion, the Borrower
shall also pay interest on the amount so prepaid or converted. Each Lender
agrees to designate a different Lending Office if such designation will avoid
the need for such notice and will not, in the good faith judgment of such
Lender, otherwise be materially disadvantageous to such Lender.

         3.03 INABILITY TO DETERMINE RATES. If the Administrative Agent
determines in connection with any request for a Eurodollar Rate Loan or a
conversion to or continuation thereof that (a) Dollar deposits are not being
offered to banks in the applicable offshore Dollar market for the applicable
amount and Interest Period of such Eurodollar Rate Loan, (b) adequate and
reasonable means do not exist for determining the Eurodollar Rate for such
Eurodollar Rate Loan, or (c) the Eurodollar Rate for such Eurodollar Rate Loan
does not adequately and fairly reflect the cost to the Lenders of funding such
Eurodollar Rate Loan, the Administrative Agent will promptly notify the Borrower
and all Lenders. Thereafter, the obligation of the Lenders to make or maintain
Eurodollar Rate Loans shall be suspended until the Administrative Agent revokes
such notice. Upon receipt of such notice, the Borrower may revoke any pending
request for a Revolving Borrowing, conversion or continuation of Eurodollar Rate
Loans or, failing that, will be deemed to have converted such request into a
request for a Revolving Borrowing of Base Rate Loans in the amount specified
therein.

         3.04 INCREASED COST AND REDUCED RETURN; CAPITAL ADEQUACY; RESERVES ON
EURODOLLAR RATE LOANS.

         (a) If any Lender determines that as a result of the introduction of or
any change in or in the interpretation of any Law, or such Lender's compliance
therewith, there shall be any increase in the cost to such Lender of agreeing to
make or making, funding or maintaining Eurodollar Rate Loans or (as the case may
be) issuing or participating in Letters of Credit, or a reduction in the amount
received or receivable by such Lender in connection with any of the foregoing
(excluding for purposes of this subsection (a) any such increased costs or
reduction in amount resulting from (i) Taxes or Other Taxes (as to which Section
3.01 shall govern), (ii) changes in the basis of taxation of overall net income
or overall gross income by the United States or any foreign jurisdiction or any
political subdivision of either thereof under the Laws of which such Lender is
organized or has its Lending Office, and (iii) reserve requirements contemplated
by Section 3.04(c), then from time to time upon demand of such Lender (with a
copy of such demand to the Administrative Agent), the Borrower shall pay to such
Lender such additional amounts as will compensate such Lender for such increased
cost or reduction.

         (b) If any Lender determines that the introduction of any Law regarding
capital adequacy or any change therein or in the interpretation thereof, or
compliance by such Lender (or its Lending Office) therewith, has the effect of
reducing the rate of return on the capital of such

                                       41
<PAGE>   47

Lender or any corporation controlling such Lender as a consequence of such
Lender's obligations hereunder (taking into consideration its policies with
respect to capital adequacy and such Lender's desired return on capital), then
from time to time upon demand of such Lender (with a copy of such demand to the
Administrative Agent), the Borrower shall pay to such Lender such additional
amounts as will compensate such Lender for such reduction.

         (c) The Borrower shall pay to each Lender, as long as such Lender shall
be required under regulations of the Board to maintain reserves with respect to
liabilities or assets consisting of or including Eurocurrency funds or deposits
(currently known as "Eurocurrency liabilities"), additional costs on the unpaid
principal amount of each Eurodollar Rate Loan equal to the actual costs of such
reserves allocated to such Loan by such Lender (as determined by such Lender in
good faith, which determination shall be conclusive), which shall be due and
payable on each date on which interest is payable on such Loan, provided the
Borrower shall have received at least 15 days' prior notice (with a copy to the
Administrative Agent) of such additional interest from such Lender. If a Lender
fails to give notice 15 days prior to the relevant Interest Payment Date, such
additional interest shall be due and payable 15 days from receipt of such
notice.

         3.05 FUNDING LOSSES. Upon demand of any Lender (with a copy to the
Administrative Agent) from time to time, the Borrower shall promptly compensate
such Lender for and hold such Lender harmless from any loss, cost or expense
incurred by it as a result of:

         (a) any continuation, conversion, payment or prepayment of any Loan
other than a Base Rate Loan on a day other than the last day of the Interest
Period for such Loan (whether voluntary, mandatory, automatic, by reason of
acceleration, or otherwise);

         (b) any failure by the Borrower (for a reason other than the failure of
such Lender to make a Loan) to prepay, borrow, continue or convert any Loan
other than a Base Rate Loan on the date or in the amount notified by the
Borrower; or

         (c) any assignment of a Eurodollar Rate Loan on a day other than the
last day of the Interest Period therefor as a result of a request by the
Borrower pursuant to Section 10.16; including any loss of anticipated profits
and any loss or expense arising from the liquidation or reemployment of funds
obtained by it to maintain such Loan or from fees payable to terminate the
deposits from which such funds were obtained; provided, however, that such
Lender shall use all reasonable efforts to mitigate such losses or expenses.

For purposes of calculating amounts payable by the Borrower to the Lenders under
this Section 3.05, each Lender shall be deemed to have funded each Eurodollar
Rate Loan made by it at the Eurodollar Rate for such Loan by a matching deposit
or other borrowing in the applicable offshore Dollar interbank market for a
comparable amount and for a comparable period, whether or not such Eurodollar
Rate Loan was in fact so funded.

         3.06 MATTERS APPLICABLE TO ALL REQUESTS FOR COMPENSATION.

         (a) A certificate of the Administrative Agent or any Lender claiming
compensation under this Article III and setting forth the additional amount or
amounts to be paid to it hereunder

                                       42
<PAGE>   48

shall be conclusive in the absence of manifest error. In determining such
amount, the Administrative Agent or such Lender may use any reasonable averaging
and attribution methods.

         (b) Upon any Lender's making a claim for compensation under Section
3.01 or 3.04, the Borrower may remove or replace such Lender in accordance with
Section 10.16.

         3.07 SURVIVAL. All of the Borrower's obligations under this Article III
shall survive termination of the Commitments and payment in full of all the
other Obligations.

                                  ARTICLE IV.
                    CONDITIONS PRECEDENT TO CREDIT EXTENSIONS

         4.01 CONDITIONS OF INITIAL CREDIT EXTENSION. The obligation of each
Lender to make its initial Credit Extension hereunder is subject to satisfaction
of the following conditions precedent:

         (a) Unless waived by all the Lenders (or by the Administrative Agent
with respect to immaterial matters or items specified in clause (v) or (vi)
below with respect to which the Borrower has given assurances satisfactory to
the Administrative Agent that such items shall be delivered promptly following
the Closing Date), the Administrative Agent's receipt of the following, each of
which shall be originals or facsimiles (followed promptly by originals) unless
otherwise specified, each properly executed by a Responsible Officer of the
signing Loan Party, each dated the Closing Date (or, in the case of certificates
of governmental officials, a recent date before the Closing Date) and each in
form and substance satisfactory to the Administrative Agent and its legal
counsel:

                  (i) executed counterparts of this Agreement and the Guaranty,
         sufficient in number for distribution to the Administrative Agent, each
         Lender and the Borrower;

                  (ii) Revolving Loan Notes executed by the Borrower in favor of
         each Lender, each in a principal amount equal to such Lender's
         Commitment;

                  (iii) a Swing Line Note executed by the Borrower in favor of
         the Swing Line Lender in the principal amount of the Swing Line
         Sublimit;

                  (iv) such certificates of resolutions or other action,
         incumbency certificates and/or other certificates of Responsible
         Officers of each Loan Party as the Administrative Agent may require to
         establish the identities of and verify the authority and capacity of
         each Responsible Officer thereof authorized to act as a Responsible
         Officer in connection with this Agreement and the other Loan Documents
         to which such Loan Party is a party;

                  (v) such evidence as the Administrative Agent may reasonably
         require to verify that each Loan Party is duly organized or formed,
         validly existing, in good standing and qualified to engage in business
         in each jurisdiction in which it is required to be qualified to engage
         in business, including certified copies of each Loan Party's

                                       43
<PAGE>   49

         Organization Documents, certificates of good standing and/or
         qualification to engage in business and tax clearance certificates;

                  (vi) a certificate signed by a Responsible Officer of the
         Borrower certifying (A) that the conditions specified in Sections
         4.02(a) and (b) have been satisfied, and (B) that there has been no
         event or circumstance since the date of the Audited Financial
         Statements which has or could be reasonably expected to have a Material
         Adverse Effect;

                  (vii) an opinion of counsel to each Loan Party in form and
         substance satisfactory to the Administrative Agent;

                  (viii) evidence that the Existing Credit Agreement has been or
         concurrently with the Closing Date is being terminated; and

                  (ix) such other assurances, certificates, documents, consents
         or opinions as the Administrative Agent, the L/C Issuer, the Swing Line
         Lender or the Required Lenders reasonably may require.

         (b) Any fees required to be paid on or before the Closing Date shall
have been paid.

         (c) Unless waived by the Administrative Agent, the Borrower shall have
paid all Attorney Costs of the Administrative Agent to the extent invoiced prior
to or on the Closing Date, plus such additional amounts of Attorney Costs as
shall constitute its reasonable estimate of Attorney Costs incurred or to be
incurred by it through the closing proceedings (provided that such estimate
shall not thereafter preclude a final settling of accounts between the Borrower
and the Administrative Agent).

         4.02 CONDITIONS TO ALL CREDIT EXTENSIONS AND CONVERSIONS AND
CONTINUATIONS. The obligation of each Lender to honor any Request for Credit
Extension is subject to the following conditions precedent:

         (a) The representations and warranties of the Borrower contained in
Article V, or which are contained in any document furnished at any time under or
in connection herewith, shall be true and correct on and as of the date of such
Credit Extension, conversion or continuation, except to the extent that such
representations and warranties specifically refer to an earlier date, in which
case they shall be true and correct as of such earlier date.

         (b) No Default or Event of Default shall exist, or would result from
such proposed Credit Extension, conversion or continuation.

         (c) The Administrative Agent and, if applicable, the L/C Issuer or the
Swing Line Lender shall have received a Request for Credit Extension in
accordance with the requirements hereof.

         (d) The Administrative Agent shall have received, in form and substance
satisfactory to it, such other assurances, certificates, documents or consents
related to the foregoing as the Administrative Agent or the Required Lenders
reasonably may require.

                                       44
<PAGE>   50

         Each Request for Credit Extension submitted by the Borrower shall be
deemed to be a representation and warranty that the conditions specified in
Sections 4.02(a) and (b) have been satisfied on and as of the date of the
applicable Credit Extension.

                                   ARTICLE V.
                         REPRESENTATIONS AND WARRANTIES

         The Borrower represents and warrants to the Administrative Agent and
the Lenders that:

         5.01 EXISTENCE, QUALIFICATION AND POWER; COMPLIANCE WITH LAWS. Each
Loan Party (a) is a corporation, partnership or limited liability company duly
organized or formed, validly existing and in good standing under the Laws of the
jurisdiction of its incorporation or organization, (b) has all requisite power
and authority and all governmental licenses, authorizations, consents and
approvals to own its assets, carry on its business and to execute, deliver, and
perform its obligations under the Loan Documents to which it is a party, (c) is
duly qualified and is licensed and in good standing under the Laws of each
jurisdiction where its ownership, lease or operation of properties or the
conduct of its business requires such qualification or license, and (d) is in
compliance with all Laws, except in each case referred to in clause (c) or this
clause (d), to the extent that failure to do so could not reasonably be expected
to have a Material Adverse Effect.

         5.02 AUTHORIZATION; NO CONTRAVENTION. The execution, delivery and
performance by each Loan Party of each Loan Document to which such Person is
party, have been duly authorized by all necessary corporate or other
organizational action, and do not and will not (a) contravene the terms of any
of such Person's Organization Documents; (b) conflict with or result in any
breach or contravention of, or the creation of any Lien under, any material
Contractual Obligation to which such Person is a party or any order, injunction,
writ or decree of any Governmental Authority to which such Person or its
property is subject; or (c) violate any Law.

         5.03 GOVERNMENTAL AUTHORIZATION. No approval, consent, exemption,
authorization, or other action by, or notice to, or filing with, any
Governmental Authority is necessary or required in connection with the
execution, delivery or performance by, or enforcement against, any Loan Party of
this Agreement or any other Loan Document.

         5.04 BINDING EFFECT. This Agreement has been, and each other Loan
Document, when delivered hereunder, will have been duly executed and delivered
by each Loan Party that is party thereto. This Agreement constitutes, and each
other Loan Document when so delivered will constitute, a legal, valid and
binding obligation of such Loan Party, enforceable against each Loan Party that
is party thereto in accordance with its terms, subject as to enforcement of
remedies to any Debtor Relief Laws.

         5.05 FINANCIAL STATEMENTS; NO MATERIAL ADVERSE EFFECT.

         (a) The Audited Financial Statements (i) were prepared in accordance
with GAAP consistently applied throughout the period covered thereby, except as
otherwise expressly noted

                                       45
<PAGE>   51

therein; (ii) fairly present the financial condition of the Borrower and its
Subsidiaries as of the date thereof and their results of operations for the
period covered thereby in accordance with GAAP consistently applied throughout
the period covered thereby, except as otherwise expressly noted therein; and
(iii) show all material indebtedness and other liabilities, direct or
contingent, of the Borrower and its Subsidiaries as of the date thereof,
including liabilities for taxes, material commitments and Indebtedness in
accordance with GAAP consistently applied throughout the period covered thereby.

         (b) Since the date of the Audited Financial Statements, there has been
no event or circumstance that has or could reasonably be expected to have a
Material Adverse Effect.

         5.06 LITIGATION. Except as specifically disclosed in Schedule 5.06,
there are no actions, suits, proceedings, claims or disputes pending or, to the
knowledge of the Borrower, threatened or contemplated, at law, in equity, in
arbitration or before any Governmental Authority, by or against the Borrower or
any of its Subsidiaries or against any of their properties or revenues which (a)
purport to affect or pertain to this Agreement or any other Loan Document, or
any of the transactions contemplated hereby, or (b) if determined adversely,
could reasonably be expected to have a Material Adverse Effect.

         5.07 NO DEFAULT. Neither the Borrower nor any Subsidiary is in default
under or with respect to any Contractual Obligation which in the Borrower's
reasonable judgment would have a Material Adverse Effect. No Default or Event of
Default has occurred and is continuing or would result from the consummation of
the transactions contemplated by this Agreement or any other Loan Document.

         5.08 OWNERSHIP OF PROPERTY; LIENS. The Borrower and each Subsidiary has
good record and marketable title in fee simple to, or valid leasehold interests
in, all real property necessary or used in the ordinary conduct of its business,
except for such defects in title as would not, individually or in the aggregate,
have a Material Adverse Effect. As of the Effective Date, the property of the
Borrower and its Subsidiaries is subject to no Liens, other than Liens permitted
by Section 7.01.

         5.09 ENVIRONMENTAL COMPLIANCE. The Borrower and its Subsidiaries
conduct in the ordinary course of business a review of the effect of existing
Environmental Laws and claims alleging potential liability or responsibility for
violation of any Environmental Law on their respective businesses, operations
and properties, and as a result thereof the Borrower has reasonably concluded
that, except as specifically disclosed in Schedule 5.09, such Environmental Laws
and claims would not, individually or in the aggregate, have a Material Adverse
Effect.

         5.10 INSURANCE. The properties of the Borrower and its Subsidiaries are
insured with financially sound and reputable insurance companies not Affiliates
of the Borrower, in such amounts, with such deductibles and covering such risks
as are customarily carried by companies of similar financial condition and
strength engaged in similar businesses and owning similar properties in
localities where the Borrower or its Subsidiaries operate.

                                       46
<PAGE>   52

         5.11 TAXES. The Borrower and its Subsidiaries have filed all Federal,
state and other material tax returns and reports required to be filed, and have
paid all Federal, state and other material taxes, assessments, fees and other
governmental charges levied or imposed upon them or their properties, income or
assets otherwise due and payable, except those which are being contested in good
faith by appropriate proceedings and for which adequate reserves have been
provided in accordance with GAAP. There is no proposed tax assessment against
the Borrower or any Subsidiary that would, if made, have a Material Adverse
Effect.

         5.12 ERISA COMPLIANCE.

         (a) Each Plan is in compliance in all material respects with the
applicable provisions of ERISA, the Code and other Federal or state Laws. Each
Plan that is intended to qualify under Section 401(a) of the Code has received a
favorable determination letter from the IRS or an application for such a letter
is currently being processed by the IRS with respect thereto and, to the best
knowledge of the Borrower, nothing has occurred which would prevent, or cause
the loss of, such qualification. The Borrower and each ERISA Affiliate have made
all required contributions to each Plan subject to Section 412 of the Code, and
no application for a funding waiver or an extension of any amortization period
pursuant to Section 412 of the Code has been made with respect to any Plan.

         (b) There are no pending or, to the best knowledge of the Borrower,
threatened claims, actions or lawsuits, or action by any Governmental Authority,
with respect to any Plan that could be reasonably be expected to have a Material
Adverse Effect. There has been no prohibited transaction or violation of the
fiduciary responsibility rules with respect to any Plan that has resulted or
could be reasonably expected to result in a Material Adverse Effect.

         (c) (i) No ERISA Event has occurred or is reasonably expected to occur;
(ii) no Pension Plan has any Unfunded Pension Liability; (iii) neither the
Borrower nor any ERISA Affiliate has incurred, or reasonably expects to incur,
any liability under Title IV of ERISA with respect to any Pension Plan (other
than premiums due and not delinquent under Section 4007 of ERISA); (iv) neither
the Borrower nor any ERISA Affiliate has incurred, or reasonably expects to
incur, any liability (and no event has occurred which, with the giving of notice
under Section 4219 of ERISA, would result in such liability) under Sections 4201
or 4243 of ERISA with respect to a Multiemployer Plan; and (v) neither the
Borrower nor any ERISA Affiliate has engaged in a transaction that could be
subject to Sections 4069 or 4212(c) of ERISA.

         5.13 SUBSIDIARIES.

         As of the Closing Date, the Borrower has no Subsidiaries other than
those specifically disclosed in Part (a) of Schedule 5.13 and has no equity
investments in any other corporation or entity other than those specifically
disclosed in Part(b) of Schedule 5.13.

                                       47

<PAGE>   53
         5.14 MARGIN REGULATIONS; INVESTMENT COMPANY ACT; PUBLIC UTILITY HOLDING
COMPANY ACT.

         (a) The Borrower is not engaged and will not engage, principally or as
one of its important activities, in the business of purchasing or carrying
margin stock (within the meaning of Regulation U issued by the Board), or
extending credit for the purpose of purchasing or carrying margin stock.

         (b) None of the Borrower, any Person controlling the Borrower, or any
Subsidiary (i) is a "holding company," or a "subsidiary company" of a "holding
company," or an "affiliate" of a "holding company" or of a "subsidiary company"
of a "holding company," within the meaning of the Public Utility Holding Company
Act of 1935, or (ii) is or is required to be registered as an "investment
company" under the Investment Company Act of 1940.

         5.15 DISCLOSURE. No statement, information, report, representation, or
warranty made by any Loan Party in any Loan Document or furnished to the
Administrative Agent or any Lender by or on behalf of any Loan Party in
connection with any Loan Document contains any untrue statement of a material
fact or omits any material fact required to be stated therein or necessary to
make the statements therein, in light of the circumstances under which they were
made, not misleading. There is no fact known to the Borrower or any of its
Subsidiaries and not known to the public generally which materially adversely
affects its assets or in the future may reasonably be expected to (so far as the
Borrower or any of its Subsidiaries can now foresee) result in a Material
Adverse Effect, which has not been disclosed to the Administrative Agent and the
Lenders by or on behalf of the Borrower or any of its Subsidiaries prior to the
Closing Date in connection with the transactions contemplated hereby.

         5.16 INTELLECTUAL PROPERTY; LICENSES, ETC. The Borrower and its
Subsidiaries own, or possess the right to use, all of the trademarks, service
marks, trade names, copyrights, patents, patent rights, franchises, licenses and
other rights that are reasonably necessary for the operation of their respective
businesses, without conflict with the rights of any other Person.

         5.17 BUSINESSES. The Borrower is presently engaged directly or through
wholly-owned Subsidiaries in the following businesses: (a) the manufacture of
asphalt roofing products, coated and uncoated fiberglass mat and mat products,
and other non-woven materials; (b) the application of metallic or other
conductive coating and gaskets, paints and other finishes to electronic
enclosures for the telecommunications, computer, and electronic and electric
equipment industries, and provisions of related services, including subassembly,
application of pad print and/or decorative paint finishes, installation of
antenna components, light tubes, battery connections, inserts and other
services, (c) the manufacturing, recycling and remanufacturing of diesel engine
power assemblies, cylinder liners, heads, rods, waterjackets, valves, pistons
and related components, including hard chrome plating of cylinder bores,
primarily for the railroad and marine industries; hard chrome plating of
original equipment cylinder liners for major domestic locomotive manufacturers
and stationary power equipment manufacturers, the electroless plating of
nonmetallic computer and other electronic enclosures to provide electromagnetic
and radio frequency interference protection, and the development of new products
for its proprietary nickel, tin, iron and hard chrome plated finishes; and (d)
the sale of

                                       48
<PAGE>   54

patent licenses with engineering support services and the sale of consulting
engineering services to the oil and gas production, gas processing and sulfur
recovery industries.

         5.18 COMMON ENTERPRISE. The Borrower and its Subsidiaries are engaged
in the businesses set forth in Section 5.17 as of the Closing Date, as well as
in certain other businesses. These operations require financing on a basis such
that the credit supplied can be made available from time to time to the Borrower
and various of its Subsidiaries, as required for the continued successful
operation of the Borrower and its Subsidiaries as a whole. The Borrower has
requested the Lender to make credit available hereunder primarily for the
purposes of financing the operations of the Borrower and its Subsidiaries,
including making Permitted Investments. The Borrower and each of its
Subsidiaries expects to derive benefit (and the Board of Directors of the
Borrower and each of its Subsidiaries has determined that such Subsidiary may
reasonably be expected to derive benefit), directly or indirectly, from the
credit extended by the Lenders hereunder, both in its separate capacity and as a
member of the group of companies, since the successful operation and condition
of the Borrower and each of its Subsidiaries is dependent on the continued
successful performance of the functions of the group as a whole.

         5.19 SOLVENT. The Borrower is, and the Borrower and its Subsidiaries
are on a consolidated basis, Solvent.

                                   ARTICLE VI.
                              AFFIRMATIVE COVENANTS

         So long as any Lender shall have any Commitment hereunder, any Loan or
other Obligation shall remain unpaid or unsatisfied, or any Letter of Credit
shall remain outstanding, the Borrower shall, and shall (except in the case of
the covenants set forth in Sections 6.01, 6.02, 6.03 and 6.11) cause each
Subsidiary to:

         6.01 FINANCIAL STATEMENTS. Deliver to the Administrative Agent and each
Lender, in form and detail satisfactory to the Administrative Agent and the
Required Lenders:

         (a) as soon as available, but in any event within 90 days after the end
of each fiscal year of the Borrower, a consolidated balance sheet of the
Borrower and its Subsidiaries as at the end of such fiscal year, and the related
consolidated statements of income and cash flows for such fiscal year, setting
forth in each case in comparative form the figures for the previous fiscal year,
all in reasonable detail, audited and accompanied by a report and opinion of an
independent certified public accountant of nationally recognized standing
reasonably acceptable to the Required Lenders, which report and opinion shall be
prepared in accordance with GAAP and shall not be subject to any qualifications
or exceptions as to the scope of the audit nor to any qualifications and
exceptions not reasonably acceptable to the Required Lenders; and

         (b) as soon as available, but in any event within 45 days after the end
of each of the first three fiscal quarters of each fiscal year of the Borrower,
a consolidated balance sheet of the Borrower and its Subsidiaries as at the end
of such fiscal quarter, and the related consolidated statements of income and
cash flows for such fiscal quarter and for the portion of the Borrower's

                                       49
<PAGE>   55

fiscal year then ended, setting forth in each case in comparative form the
figures for the corresponding fiscal quarter of the previous fiscal year and the
corresponding portion of the previous fiscal year, all in reasonable detail and
certified by a Responsible Officer of the Borrower as fairly presenting the
financial condition, results of operations and cash flows of the Borrower and
its Subsidiaries in accordance with GAAP, subject only to normal year-end audit
adjustments and the absence of footnotes.

         6.02 CERTIFICATES; OTHER INFORMATION. Deliver to the Administrative
Agent and each Lender, in form and detail satisfactory to the Administrative
Agent and the Required Lenders:

         (a) concurrently with the delivery of the financial statements referred
to in Section 6.01(a), a certificate of its independent certified public
accountants certifying such financial statements and stating that in making the
examination necessary therefor no knowledge was obtained of any Default or Event
of Default with respect to Section 7.12 or, if any such Default or Event of
Default shall exist, stating the nature and status of such event;

         (b) concurrently with the delivery of the financial statements referred
to in Sections 6.01(a) and (b), a duly completed Compliance Certificate signed
by a Responsible Officer of the Borrower;

         (c) promptly after requested by the Administrative Agent or any Lender,
copies of any detailed audit reports, management letters or recommendations
submitted to the board of directors (or the audit committee of the board of
directors) of the Borrower by independent accountants in connection with the
accounts or books of the Borrower or any Subsidiary, or any audit of any of
them;

         (d) promptly after the same are available, copies of each annual
report, proxy or financial statement or other report or communication sent to
the stockholders of the Borrower, and copies of all annual, regular, periodic
and special reports and registration statements which the Borrower may file or
be required to file with the Securities and Exchange Commission under Section 13
or 15(d) of the Securities Exchange Act of 1934, and not otherwise required to
be delivered to the Administrative Agent pursuant hereto; and

         (e) promptly, such additional information regarding the business,
financial or corporate affairs of the Borrower or any Subsidiary as the
Administrative Agent may from time to time request.

         6.03 NOTICES. Promptly notify the Administrative Agent and each Lender:

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

         (b) of any matter that has resulted or could reasonably be expected to
result in a Material Adverse Effect, including (i) breach or non-performance of,
or any default under, a Contractual Obligation of the Borrower or any
Subsidiary; (ii) any dispute, litigation, investigation, proceeding or
suspension between the Borrower or any Subsidiary and any Governmental
Authority; or (iii) the commencement of, or any material development in, any

                                      50
<PAGE>   56

litigation, investigation, or proceeding affecting the Borrower or any
Subsidiary, including pursuant to any applicable Environmental Laws;

         (c) of any litigation, investigation or proceeding affecting any Loan
Party in which the damages, penalties, fines or other sanctions could reasonably
be expected to exceed $300,000 (to the extent not covered by independent
third-party insurance) or in which injunctive relief or similar relief is
sought, which relief, if granted, could be reasonably expected to have a
Material Adverse Effect;

         (d) of the occurrence of any ERISA Event; and

         (e) of any material change in accounting policies or financial
reporting practices by the Borrower or any Subsidiary; and

         Each notice pursuant to this Section shall be accompanied by a
statement of a Responsible Officer of the Borrower setting forth details of the
occurrence referred to therein and stating what action the Borrower has taken
and proposes to take with respect thereto. Each notice pursuant to Section
6.03(a) shall describe with particularity any and all provisions of this
Agreement or other Loan Document that have been breached.

         6.04 PAYMENT OF OBLIGATIONS. Pay and discharge as the same shall become
due and payable, all its material obligations and liabilities, including (a) all
tax liabilities, assessments and governmental charges or levies upon it or its
properties or assets, unless the same are being contested in good faith by
appropriate proceedings and adequate reserves in accordance with GAAP are being
maintained by the Borrower or such Subsidiary; (b) all lawful claims which, if
unpaid, would by law become a Lien upon its property; and (c) all Indebtedness,
as and when due and payable, but subject to any subordination provisions
contained in any instrument or agreement evidencing such Indebtedness.

         6.05 PRESERVATION OF EXISTENCE, ETC. Preserve, renew and maintain in
full force and effect its legal existence and good standing under the Laws of
the jurisdiction of its organization; take all reasonable action to maintain all
rights, privileges, permits, licenses and franchises necessary or desirable in
the normal conduct of its business, except in a transaction permitted by Section
7.04 or 7.05; and preserve or renew all of its registered patents, trademarks,
trade names and service marks, the non-preservation of which could reasonably be
expected to have a Material Adverse Effect.

         6.06 MAINTENANCE OF PROPERTIES. (a) Maintain, preserve and protect all
of its material properties and equipment necessary in the operation of its
business in good working order and condition, ordinary wear and tear excepted;
(b) make all necessary repairs thereto and renewals and replacements thereof
except where the failure to do so could not reasonably be expected to have a
Material Adverse Effect; and (c) use the standard of care typical in the
industry in the operation and maintenance of its facilities.

         6.07 MAINTENANCE OF INSURANCE. Maintain with financially sound and
reputable insurance companies not Affiliates of the Borrower, insurance with
respect to its properties and

                                       51
<PAGE>   57

business against loss or damage of the kinds customarily insured against by
Persons of similar financial condition and strength engaged in the same or
similar business and owning similar properties in localities where the Borrower
or its Subsidiaries operate, of such types and in such amounts as are
customarily carried under similar circumstances by such other Persons.

         6.08 COMPLIANCE WITH LAWS. Comply in all material respects with the
requirements of all Laws applicable to it or to its business or property, except
in such instances in which (i) such requirement of Law is being contested in
good faith or a bona fide dispute exists with respect thereto; or (ii) the
failure to comply therewith could not be reasonably expected to have a Material
Adverse Effect.

         6.09 BOOKS AND RECORDS. Maintain proper books of record and account, in
which full, true and correct entries in conformity with GAAP consistently
applied shall be made of all financial transactions and matters involving the
assets and business of the Borrower or such Subsidiary, as the case may be.

         6.10 INSPECTION RIGHTS. Subject to Section 10.08, permit
representatives and independent contractors of the Administrative Agent and each
Lender to visit and inspect any of its properties, to examine its corporate,
financial and operating records, and make copies thereof or abstracts therefrom,
and to discuss its affairs, finances and accounts with its directors, officers,
and independent public accountants, all at the expense of the Lenders and at
such reasonable times during normal business hours and as often as may be
reasonably desired, upon request of the Required Lenders or the Administrative
Agent and reasonable advance notice to the Borrower; provided, however, that
when an Event of Default exists the Administrative Agent or any Lender (or any
of their respective representatives or independent contractors) may do any of
the foregoing at the expense of the Borrower at any time during normal business
hours and without advance notice.

         6.11 COMPLIANCE WITH ERISA. Do, and cause each of its ERISA Affiliates
to do, each of the following: (a) maintain each Plan in compliance in all
material respects with the applicable provisions of ERISA, the Code and other
Federal or state law; (b) preclude each Plan which is qualified under Section
401(a) of the Code from being determined to be disqualified in any final
assessment by the IRS; and (c) make all required contributions to any Plan
subject to Section 412 of the Code.

         6.12 USE OF PROCEEDS. Use the proceeds of the Credit Extensions for
working capital and other general corporate purposes not in contravention of any
Law or of any Loan Document.

         6.13 FURTHER ASSURANCES. Upon the reasonable request of the
Administrative Agent, the Borrower will duly execute and deliver to the
Administrative Agent any and all such further instruments and documents as may
be necessary or advisable, in the opinion of the Administrative Agent, to obtain
the full benefits of the Loan Documents.

         6.14 NOTICE OF FORMATION OF SUBSIDIARY. Give the Administrative Agent
written notice of any proposed formation of any Subsidiary pursuant to Section
6.15 at least ten calendar days before the formation of any such Subsidiary.

                                       52
<PAGE>   58

         6.15 GUARANTIES BY NEW SUBSIDIARIES. Cause each Subsidiary which the
Borrower or any of its Subsidiaries forms during the term of this Agreement
which is not a Foreign Subsidiary to execute and deliver to the Administrative
Agent a Guaranty, together with a certified copy of a resolution of the board of
directors (or other authorizing document of the appropriate governing body or
Person) of such new Subsidiary authorizing the execution and delivery of the
Guaranty and the performance of its terms, together with such other documents as
the Administrative Agent may reasonably request.

                                  ARTICLE VII.
                               NEGATIVE COVENANTS

         So long as any Lender shall have any Commitment hereunder, any Loan or
other Obligation shall remain unpaid or unsatisfied, or any Letter of Credit
shall remain outstanding, the Borrower shall not, nor shall it permit any
Subsidiary to, directly or indirectly:

         7.01 LIENS. Create, incur, assume or suffer to exist, any Lien upon any
of its property, assets or revenues, whether now owned or hereafter acquired,
other than the following:

         (a) Liens pursuant to any Loan Document;

         (b) Liens securing taxes (including in respect of any Tax Abatement
Disposition), assessment or governmental charges or levies or the claims or
demands of materialmen, mechanics, carriers, warehousemen, landlords and other
like Persons, provided the payment thereof is not then required by or past due
under Section 6.04;

         (c) Liens incurred or deposits made in the ordinary course of business
(i) in connection with worker's compensation, unemployment insurance, social
security and other like Laws, or (ii) to secure the performance of letters of
credit, bids, tenders, sales contracts, leases, statutory obligations, sureties,
appeals and performance bonds and other similar obligations not incurred in
connection with the borrowing of money, the obtaining of advances or the payment
of the deferred purchase price of Property;

         (d) attachment, judgment or other similar Liens arising in connection
with court proceedings, provided the execution or other enforcement of such
Liens is effectively stayed and the claims secured thereby are being actively
contested in good faith and by appropriate proceedings;

         (e) Liens on Property of a Subsidiary of the Borrower, provided such
Liens secure only obligations owing to the Borrower or a Guarantor;

         (f) reservations, exceptions, encroachments, easements, rights of way,
covenants, conditions, restrictions, leases and other similar title exceptions
or encumbrances affecting real property, provided they do not in the aggregate
materially detract from the value of said Properties or materially interfere
(taking the Borrower and its Subsidiaries as a consolidated whole) with their
use in the ordinary course of the Borrower's business;

                                       53
<PAGE>   59

         (g) other Liens existing at the date of this Agreement described on
Schedule 7.01 and in connection with refinancing (but not increasing) the
Indebtedness presently secured thereby; and

         (h) Liens on Property of Foreign Subsidiaries to secure Indebtedness of
Foreign Subsidiaries to the extent such Indebtedness is permitted pursuant to
the terms of Section 7.11.

         7.02 INVESTMENTS. Make any Investments, except Permitted Investments.

         7.03 FUNDAMENTAL CHANGES. Merge, consolidate with or into, or convey,
transfer, lease or otherwise dispose of (whether in one transaction or in a
series of transactions) all or substantially all of its assets (whether now
owned or hereafter acquired) to or in favor of any Person, except that, so long
as no Default or Event of Default exists or would result therefrom:

         (a) (i) any Subsidiary may merge with (A) the Borrower, provided that
the Borrower shall be the continuing or surviving Person, or (B) any Guarantor,
and (ii) any Foreign Subsidiary may merge with another Foreign Subsidiary; and

         (b) (i) any Subsidiary may sell all or substantially all of its assets
(upon voluntary liquidation or otherwise) to the Borrower or to a Guarantor and
(ii) any Foreign Subsidiary may sell all or substantially all of its assets
(upon voluntary liquidation or otherwise) to another Foreign Subsidiary.

         7.04 DISPOSITIONS. Make any Disposition or enter into any agreement to
make any Disposition, except:

         (a) Dispositions of obsolete or worn out property, whether now owned or
hereafter acquired, in the ordinary course of business;

         (b) Dispositions of inventory and other property in the ordinary course
of business;

         (c) Dispositions of equipment or real property to the extent that (i)
such property is exchanged for credit against the purchase price of similar
replacement property, (ii) the proceeds of such Disposition are reasonably
promptly applied to the purchase price of such replacement property or (iii) the
Board of Directors or senior management of the Borrower or such Subsidiary has
determined in good faith that the failure to replace such property will not be
detrimental to the business of the Borrower or such Subsidiary;

         (d) Dispositions of capital stock or all or substantially all of the
assets of any Subsidiary not engaged in the businesses described in Section
5.17(a) or 5.17(b);

         (e) Dispositions of capital stock or all or substantially all of the
assets of any Subsidiary engaged in the businesses described in Section 5.17(b),
provided that after application of the proceeds received in respect of any such
Disposition the Leverage Ratio calculated on a pro forma basis does not exceed
2.50 to 1;

         (f) Dispositions of property by any Subsidiary to the Borrower or to a
Guarantor;

                                       54
<PAGE>   60

         (g) Dispositions permitted by Section 7.03 or Section 7.05;

         (h) Dispositions of property by the Borrower or any Subsidiary to a
Foreign Subsidiary consisting of Investments, subject to the limitation set
forth in clause (i) of the definition of Permitted Investments; and

         (i) Tax Abatement Dispositions,

provided, however, that any Disposition pursuant to clauses (a) through (e)
shall be for fair market value.

         7.05 RESTRICTED PAYMENTS. Declare or make, directly or indirectly, any
Restricted Payment, or incur any obligation (contingent or otherwise) to do so;
provided that, after giving effect to any proposed Restricted Payment, no
Default or Event of Default shall have occurred or be continuing, the Borrower
may make Restricted Payments during the term of this Agreement not to exceed the
sum of (i) $15,000,000 plus (or minus in the case of a cumulative deficit), (ii)
35% of cumulative Consolidated Net Income (100% in the case of a deficit) for
the period commencing July 1, 2000 and ending on the date such proposed
Restricted Payment is to be made, plus (iii) without duplication, the amount of
cash received by the Borrower as a result of the sale or disposition of Capital
Stock of the Borrower acquired in a Treasury Stock Purchase.

         7.06 ERISA. At any time engage in a transaction which could be subject
to Section 4069 or 4212(c) of ERISA, or permit any Plan to (a) engage in any
non-exempt "prohibited transaction" (as defined in Section 4975 of the Code);
(b) fail to comply in any material respect with ERISA or any other applicable
Laws; or (c) incur any material "accumulated funding deficiency" (as defined in
Section 302 of ERISA), which, with respect to each event listed above, could be
reasonably expected to have a Material Adverse Effect.

         7.07 CHANGE IN NATURE OF BUSINESS. Subject to Section 7.04(d), engage
in any material line of business substantially different from those lines of
business conducted by the Borrower and its Subsidiaries on the date hereof and
businesses reasonably related thereto.

         7.08 TRANSACTIONS WITH AFFILIATES. Enter into any transaction of any
kind with any Affiliate of the Borrower, other than arm's-length transactions
with Affiliates, transactions otherwise permitted hereunder and transactions
with Affiliates in the ordinary course of business.

         7.09 BURDENSOME AGREEMENTS. Enter into any Contractual Obligation that
limits the ability (a) of any Subsidiary to make Restricted Payments to the
Borrower or to otherwise transfer property to the Borrower or (b) of the
Borrower or any Subsidiary to create, incur, assume or suffer to exist Liens on
property of such Person.

         7.10 USE OF PROCEEDS. Use the proceeds of any Credit Extension, whether
directly or indirectly, and whether immediately, incidentally or ultimately, to
purchase or carry margin stock (within the meaning of Regulation U of the Board)
or to extend credit to others for the purpose of purchasing or carrying margin
stock or to refund indebtedness originally incurred for such purpose.

                                       55
<PAGE>   61

         7.11 FOREIGN SUBSIDIARY INDEBTEDNESS. Notwithstanding anything herein
to the contrary, (a) no Foreign Subsidiary shall create, assume, incur or
otherwise become or remain obligated in respect of any, or permit to be
outstanding, or suffer to exist any Indebtedness, except Indebtedness for
working capital and other general corporate purposes not to exceed $20,000,000
in aggregate amount, and (b) the Borrower and no other Subsidiary which is not a
Foreign Subsidiary shall Guaranty any Indebtedness of a Foreign Subsidiary
except to the extent that the Indebtedness is otherwise permitted pursuant to
clause (a) above.

         7.12 FINANCIAL COVENANTS.

         (a) Consolidated Net Worth. Permit Consolidated Net Worth as of the end
of any fiscal quarter of the Borrower to be less than the sum of (i)
$135,000,000, (ii) an amount equal to 65% of the Consolidated Net Income earned
in each fiscal quarter ending after June 30, 2000 (with no deduction for a net
loss in any such fiscal quarter) and (iii) an amount equal to 100% of the
aggregate increases in Shareholders' Equity of the Borrower and its Subsidiaries
after the date hereof by reason of the issuance and sale of Capital Stock of the
Borrower (including upon any conversion of debt securities of the Borrower into
such Capital Stock, but excluding any sales of treasury stock), or the
conversion or exchange of preferred Capital Stock of the Borrower into common
Capital Stock of the Borrower.

         (b) Interest Coverage Ratio. Permit the Interest Coverage Ratio to be
less than (i) 3.00 to 1 as of the end of any fiscal quarter occurring during
that period from and including the Closing Date through and including March 31,
2002 and (ii) 3.50 to 1 as of the end of any fiscal quarter thereafter.

         (c) Capitalization Ratio. Permit the Capitalization Ratio as of the end
of any fiscal quarter of the Borrower to be greater than 0.45 to. 1

                                 ARTICLE VIII.
                         EVENTS OF DEFAULT AND REMEDIES

         8.01 EVENTS OF DEFAULT. Any of the following shall constitute an Event
of Default:

         (a) Non-Payment. The Borrower fails to pay (i) when due, any amount of
principal of any Loan or any L/C Obligation or (ii) within 3 Business Days of
the date when due any interest on any Loan or on any L/C Obligation, any
commitment or other fee due hereunder, or any other amount payable hereunder or
under any other Loan Document; or

         (b) Specific Covenants. The Borrower fails to perform or observe any
term, covenant or agreement contained in any of Section 6.03(a) or (b), 6.05,
6.10, 6.12 or Article VII; or

         (c) Other Defaults. Any Loan Party fails to perform or observe any
other covenant or agreement (not specified in subsection (a), (b) or (c) above)
contained in any Loan Document on its part to be performed or observed and such
failure continues for 30 days; or

                                       56
<PAGE>   62

         (d) Representations and Warranties. Any representation or warranty made
or deemed made by the Borrower or any other Loan Party herein, in any other Loan
Document, or in any document delivered in connection herewith or therewith
proves to have been incorrect in any material respect when made or deemed made;
or

         (e) Cross-Default. (i) The Borrower or any Subsidiary (A) fails to make
any payment when due (whether by scheduled maturity, required prepayment,
acceleration, demand, or otherwise) in respect of any Indebtedness (other than
Indebtedness hereunder and Indebtedness under Swap Contracts) having an
aggregate principal amount (including undrawn committed or available amounts and
including amounts owing to all creditors under any combined or syndicated credit
arrangement) of more than $1,000,000, or (B) fails to observe or perform any
other agreement or condition relating to any such Indebtedness or contained in
any instrument or agreement evidencing, securing or relating thereto, or any
other event occurs, the effect of which default or other event is to cause, or
to permit the holder or holders of such Indebtedness or the beneficiary or
beneficiaries of any Guaranty Obligation with respect to such Indebtedness (or a
trustee or agent on behalf of such holder or holders or beneficiary or
beneficiaries) to cause, with the giving of notice if required, such
Indebtedness to be demanded or to become due or to be repurchased or redeemed
(automatically or otherwise) or such Guaranty Obligation to become payable or
cash collateral in respect thereof to be demanded; or (ii) there occurs under
any Swap Contract an Early Termination Date (as defined in such Swap Contract)
resulting from (A) any event of default under such Swap Contract as to which the
Borrower or any Subsidiary is the Defaulting Party (as defined in such Swap
Contract) or (B) any Termination Event (as so defined) under such Swap Contract
as to which the Borrower or any Subsidiary is an Affected Party (as so defined)
and, in either event, the Swap Termination Value owed by the Borrower or such
Subsidiary as a result thereof is greater than $1,000,000; or

         (f) Insolvency Proceedings, Etc. Any Loan Party or any of its
Subsidiaries institutes or consents to the institution of any proceeding under
any Debtor Relief Law, or makes an assignment for the benefit of creditors; or
applies for or consents to the appointment of any receiver, trustee, custodian,
conservator, liquidator, rehabilitator or similar officer for it or for all or
any material part of its property; or any receiver, trustee, custodian,
conservator, liquidator, rehabilitator or similar officer is appointed without
the application or consent of such Person; or any proceeding under any Debtor
Relief Law relating to any such Person or to all or any part of its property is
instituted without the consent of such Person; or

         (g) Inability to Pay Debts; Attachment. (i) The Borrower or any
Subsidiary becomes unable or admits in writing its inability or fails generally
to pay its debts as they become due, or (ii) any writ or warrant of attachment
or execution or similar process is issued or levied against all or any material
part of the property of any such Person and is not released, vacated or fully
bonded within 30 days after its issue or levy; or

         (h) Judgments. There is entered against the Borrower or any Subsidiary
(i) a final judgment or order for the payment of money in an aggregate amount
exceeding 5% of Shareholders' Equity (to the extent not covered by independent
third-party insurance), or (ii) any non-monetary final judgment that has, or
would reasonably be expected to have, a Material Adverse Effect and, in either
case, (A) enforcement proceedings are commenced by any creditor

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<PAGE>   63

upon such judgment or order, or (B) there is a period of 30 consecutive days
during which a stay of enforcement of such judgment, by reason of a pending
appeal or otherwise, is not in effect; or

         (i) ERISA. (i) An ERISA Event occurs with respect to a Pension Plan or
Multiemployer Plan which has resulted or could reasonably be expected to result
in liability of the Borrower under Title IV of ERISA to the Pension Plan,
Multiemployer Plan or the PBGC in an aggregate amount in excess of $1,000,000,
or (ii) the Borrower or any ERISA Affiliate fails to pay when due, after the
expiration of any applicable grace period, any installment payment with respect
to its withdrawal liability under Section 4201 of ERISA under a Multiemployer
Plan in an aggregate amount in excess of $1,000,000; or

         (j) Invalidity of Material Loan Documents. Any Material Loan Document,
at any time after its execution and delivery and for any reason other than the
agreement of all the Lenders or satisfaction in full of all the Obligations,
ceases to be in full force and effect, or is declared by a court of competent
jurisdiction to be null and void, invalid or unenforceable in any respect; or
any Loan Party denies that it has any or further liability or obligation under
any Material Loan Document, or purports to revoke, terminate or rescind any
Material Loan Document; or

         (k) Change of Control. There occurs any Change of Control of the
Borrower.

         8.02 REMEDIES UPON EVENT OF DEFAULT. If any Event of Default occurs,
the Administrative Agent shall, at the request of, or may, with the consent of,
the Required Lenders,

         (a) declare the commitment of each Lender to make Loans and any
obligation of the L/C Issuer to make L/C Credit Extensions to be terminated,
whereupon such commitments and obligation shall be terminated;

         (b) declare the unpaid principal amount of all outstanding Loans, all
interest accrued and unpaid thereon, and all other amounts owing or payable
hereunder or under any other Loan Document to be immediately due and payable,
without presentment, demand, protest or other notice of any kind, all of which
are hereby expressly waived by the Borrower;

         (c) require that the Borrower Cash Collateralize the L/C Obligations
(in an amount equal to the then Outstanding Amount thereof); and

         (d) exercise on behalf of itself and the Lenders all rights and
remedies available to it and the Lenders under the Loan Documents or applicable
law;

provided, however, that upon the occurrence of any event specified in subsection
(f) of Section 8.01, the obligation of each Lender to make Loans and
any obligation of the L/C Issuer to make L/C Credit Extensions shall
automatically terminate, the unpaid principal amount of all outstanding Loans
and all interest and other amounts as aforesaid shall automatically become due
and payable, and the obligation of the Borrower to Cash Collateralize the L/C
Obligations as aforesaid shall automatically become effective, in each case
without further act of the Administrative Agent or any Lender.

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                                  ARTICLE IX.
                              ADMINISTRATIVE AGENT

         9.01 APPOINTMENT AND AUTHORIZATION OF ADMINISTRATIVE AGENT.

         (a) Each Lender hereby irrevocably (subject to Section 9.09) appoints,
designates and authorizes the Administrative Agent to take such action on its
behalf under the provisions of this Agreement and each other Loan Document and
to exercise such powers and perform such duties as are expressly delegated to it
by the terms of this Agreement or any other Loan Document, together with such
powers as are reasonably incidental thereto. Notwithstanding any provision to
the contrary contained elsewhere herein or in any other Loan Document, the
Administrative Agent shall not have any duties or responsibilities, except those
expressly set forth herein, nor shall the Administrative Agent have or be deemed
to have any fiduciary relationship with any Lender or participant, 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 Administrative Agent. Without limiting the
generality of the foregoing sentence, the use of the term "agent" herein and in
the other Loan Documents with reference to the Administrative Agent is not
intended to connote any fiduciary or other implied (or express) obligations
arising under agency doctrine of any applicable law. Instead, such term is used
merely as a matter of market custom, and is intended to create or reflect only
an administrative relationship between independent contracting parties.

         (b) The L/C Issuer shall act on behalf of the Lenders with respect to
any Letters of Credit issued by it and the documents associated therewith until
such time (and except for so long) as the Administrative Agent may agree at the
request of the Required Lenders to act for the L/C Issuer with respect thereto;
provided, however, that the L/C Issuer shall have all of the benefits and
immunities (i) provided to the Administrative Agent in this Article IX with
respect to any acts taken or omissions suffered by the L/C Issuer in connection
with Letters of Credit issued by it or proposed to be issued by it and the
application and agreements for letters of credit pertaining to the Letters of
Credit as fully as if the term "Administrative Agent" as used in this Article IX
included the L/C Issuer with respect to such acts or omissions, and (ii) as
additionally provided herein with respect to the L/C Issuer.

         9.02 DELEGATION OF DUTIES. The Administrative Agent may execute any of
its duties under this Agreement or any other Loan Document by or through agents,
employees or attorneys-in-fact and shall be entitled to advice of counsel and
other consultants or experts concerning all matters pertaining to such duties.
The Administrative Agent shall not be responsible for the negligence or
misconduct of any agent or attorney-in-fact that it selects in the absence of
gross negligence or willful misconduct.

         9.03 LIABILITY OF ADMINISTRATIVE AGENT. No Agent-Related Person shall
(a) be liable for any action taken or omitted to be taken by any of them under
or in connection with this Agreement or any other Loan Document or the
transactions contemplated hereby (except for its own gross negligence or willful
misconduct in connection with its duties expressly set forth herein), or (b) be
responsible in any manner to any Lender or participant for any recital,
statement, representation or warranty made by any Loan Party or any officer
thereof, contained

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<PAGE>   65

herein or in any other Loan Document, or in any certificate, report, statement
or other document referred to or provided for in, or received by the
Administrative Agent under or in connection with, this Agreement or any other
Loan Document, or the validity, effectiveness, genuineness, enforceability or
sufficiency of this Agreement or any other Loan Document, or for any failure of
any Loan Party or any other party to any Loan Document to perform its
obligations hereunder or thereunder. No Agent-Related Person shall be under any
obligation to any Lender or participant to ascertain or to inquire as to the
observance or performance of any of the agreements contained in, or conditions
of, this Agreement or any other Loan Document, or to inspect the properties,
books or records of any Loan Party or any Affiliate thereof.

         9.04 RELIANCE BY ADMINISTRATIVE AGENT.

         (a) The Administrative Agent shall be entitled to rely, and shall be
fully protected in relying, upon any writing, communication, signature,
resolution, representation, notice, consent, certificate, affidavit, letter,
telegram, facsimile, telex or telephone message, statement 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 or Persons, and upon advice and statements of
legal counsel (including counsel to any Loan Party), independent accountants and
other experts selected by the Administrative Agent. The Administrative Agent
shall be fully justified in failing or refusing to take any action under any
Loan Document unless it shall first receive such advice or concurrence of the
Required Lenders as it deems appropriate and, if it so requests, 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 Administrative Agent shall in all cases be fully
protected in acting, or in refraining from acting, under this Agreement or any
other Loan Document in accordance with a request or consent of the Required
Lenders or all the Lenders, if required hereunder, and such request and any
action taken or failure to act pursuant thereto shall be binding upon all the
Lenders and participants. Where this Agreement expressly permits or prohibits an
action unless the Required Lenders otherwise determine, the Administrative Agent
shall, and in all other instances, the Administrative Agent may, but shall not
be required to, initiate any solicitation for the consent or a vote of the
Lenders.

         (b) For purposes of determining compliance with the conditions
specified in Section 4.01, each Lender that has signed this Agreement shall be
deemed to have consented to, approved or accepted or to be satisfied with, each
document or other matter either sent by the Administrative Agent to such Lender
for consent, approval, acceptance or satisfaction, or required thereunder to be
consented to or approved by or acceptable or satisfactory to a Lender.

         9.07 NOTICE OF DEFAULT. The Administrative Agent shall not be deemed to
have knowledge or notice of the occurrence of any Default or Event of Default,
except with respect to defaults in the payment of principal, interest and fees
required to be paid to the Administrative Agent for the account of the Lenders,
unless the Administrative Agent shall have received written notice from a Lender
or the Borrower referring to this Agreement, describing such Default or Event of
Default and stating that such notice is a "notice of default." The
Administrative Agent will notify the Lenders of its receipt of any such notice.
The Administrative Agent shall take such action with respect to such Default or
Event of Default as may be directed by the Required Lenders in accordance with
Article VIII; provided, however,

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<PAGE>   66

that unless and until the Administrative Agent has received any such direction,
the Administrative 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 or in the best interest of the Lenders.

         9.08 CREDIT DECISION; DISCLOSURE OF INFORMATION BY ADMINISTRATIVE
AGENT. Each Lender acknowledges that no Agent-Related Person has made any
representation or warranty to it, and that no act by the Administrative Agent
hereinafter taken, including any consent to and acceptance of any assignment or
review of the affairs of any Loan Party or any Affiliate thereof, shall be
deemed to constitute any representation or warranty by any Agent-Related Person
to any Lender as to any matter, including whether Agent-Related Persons have
disclosed material information in their possession. Each Lender represents to
the Administrative Agent that it has, independently and without reliance upon
any Agent-Related Person and based on such documents and information as it has
deemed appropriate, made its own appraisal of and investigation into the
business, prospects, operations, property, financial and other condition and
creditworthiness of the Loan Parties and their respective Subsidiaries, and all
applicable bank or other regulatory Laws relating to the transactions
contemplated hereby, and made its own decision to enter into this Agreement and
to extend credit to the Borrower [and the other Loan Parties] hereunder. Each
Lender also represents that it will, independently and without reliance upon any
Agent-Related Person and based on such documents and information as it shall
deem appropriate at the time, continue to make its own credit analysis,
appraisals and decisions in taking or not taking action under this Agreement and
the other Loan Documents, and to make such investigations as it deems necessary
to inform itself as to the business, prospects, operations, property, financial
and other condition and creditworthiness of the Borrower and the other Loan
Parties. Except for notices, reports and other documents expressly required to
be furnished to the Lenders by the Administrative Agent herein, the
Administrative Agent shall not have any duty or responsibility to provide any
Lender with any credit or other information concerning the business, prospects,
operations, property, financial and other condition or creditworthiness of any
of the Loan Parties or any of their respective Affiliates which may come into
the possession of any Agent-Related Person.

         9.09 INDEMNIFICATION OF ADMINISTRATIVE AGENT. WHETHER OR NOT THE
TRANSACTIONS CONTEMPLATED HEREBY ARE CONSUMMATED, THE LENDERS SHALL INDEMNIFY
UPON DEMAND EACH AGENT-RELATED PERSON (TO THE EXTENT NOT REIMBURSED BY OR ON
BEHALF OF ANY LOAN PARTY AND WITHOUT LIMITING THE OBLIGATION OF ANY LOAN PARTY
TO DO SO), PRO RATA, AND HOLD HARMLESS EACH AGENT-RELATED PERSON FROM AND
AGAINST ANY AND ALL INDEMNIFIED LIABILITIES INCURRED BY IT (WHETHER OR NOT
ARISING OUT OF THE NEGLIGENCE OF SUCH AGENT RELATED PERSON); PROVIDED, HOWEVER,
THAT NO LENDER SHALL BE LIABLE FOR THE PAYMENT TO ANY AGENT-RELATED PERSON OF
ANY PORTION OF SUCH INDEMNIFIED LIABILITIES RESULTING FROM SUCH PERSON'S GROSS
NEGLIGENCE OR WILLFUL MISCONDUCT; PROVIDED, HOWEVER, THAT NO ACTION TAKEN IN
ACCORDANCE WITH THE DIRECTIONS OF THE REQUIRED LENDERS SHALL BE DEEMED TO
CONSTITUTE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT FOR PURPOSES OF THIS SECTION.
WITHOUT LIMITATION OF THE

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<PAGE>   67

FOREGOING, EACH LENDER SHALL REIMBURSE THE ADMINISTRATIVE AGENT UPON DEMAND FOR
ITS RATABLE SHARE OF ANY COSTS OR OUT-OF-POCKET EXPENSES (INCLUDING ATTORNEY
COSTS) INCURRED BY THE ADMINISTRATIVE AGENT IN CONNECTION WITH THE PREPARATION,
EXECUTION, DELIVERY, ADMINISTRATION, MODIFICATION, AMENDMENT OR ENFORCEMENT
(WHETHER THROUGH NEGOTIATIONS, LEGAL PROCEEDINGS OR OTHERWISE) OF, OR LEGAL
ADVICE IN RESPECT OF RIGHTS OR RESPONSIBILITIES UNDER, THIS AGREEMENT, ANY OTHER
LOAN DOCUMENT, OR ANY DOCUMENT CONTEMPLATED BY OR REFERRED TO HEREIN, TO THE
EXTENT THAT THE ADMINISTRATIVE AGENT IS NOT REIMBURSED FOR SUCH EXPENSES BY OR
ON BEHALF OF THE BORROWER. THE UNDERTAKING IN THIS SECTION SHALL SURVIVE
TERMINATION OF THE COMMITMENTS, THE PAYMENT OF ALL OBLIGATIONS HEREUNDER AND THE
RESIGNATION OR REPLACEMENT OF THE ADMINISTRATIVE AGENT. THE FOREGOING INDEMNITY
SHALL APPLY TO THE NEGLIGENCE OF THE AGENT-RELATED PERSON (BUT NOT THE GROSS
NEGLIGENCE OR WILLFUL MISCONDUCT OF THE AGENT-RELATED PERSON).

         9.10 ADMINISTRATIVE AGENT IN ITS INDIVIDUAL CAPACITY. Bank of America
and its Affiliates may make loans to, issue letters of credit for the account
of, accept deposits from, acquire equity interests in and generally engage in
any kind of banking, trust, financial advisory, underwriting or other business
with each of the Loan Parties and their respective Affiliates as though Bank of
America were not the Administrative Agent or the L/C Issuer hereunder and
without notice to or consent of the Lenders. The Lenders acknowledge that,
pursuant to such activities, Bank of America or its Affiliates may receive
information regarding any Loan Party or its Affiliates (including information
that may be subject to confidentiality obligations in favor of such Loan Party
or such Affiliate) and acknowledge that the Administrative Agent shall be under
no obligation to provide such information to them. With respect to its Loans,
Bank of America shall have the same rights and powers under this Agreement as
any other Lender and may exercise such rights and powers as though it were not
the Administrative Agent or the L/C Issuer, and the terms "Lender" and "Lenders"
include Bank of America in its individual capacity.

         9.11 SUCCESSOR ADMINISTRATIVE AGENT. The Administrative Agent may, and
at the request of the Required Lenders shall, resign as Administrative Agent
upon 30 days' notice to the Lenders. If the Administrative Agent resigns under
this Agreement, the Required Lenders shall appoint from among the Lenders a
successor administrative agent for the Lenders which successor administrative
agent shall be consented to by the Borrower at all times other than during the
existence of an Event of Default (which consent of the Borrower shall not be
unreasonably withheld or delayed). If no successor administrative agent is
appointed prior to the effective date of the resignation of the Administrative
Agent, the Administrative Agent may appoint, after consulting with the Lenders
and the Borrower, a successor administrative agent from among the Lenders. Upon
the acceptance of its appointment as successor administrative agent hereunder,
such successor administrative agent shall succeed to all the rights, powers and
duties of the retiring Administrative Agent and the term "Administrative Agent"
shall mean such successor administrative agent and the retiring Administrative
Agent's appointment, powers and duties as Administrative Agent shall be
terminated. After any retiring Administrative Agent's resignation hereunder as
Administrative Agent, the provisions of this Article IX and

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Sections 10.03 and 10.13 shall inure to its benefit as to any actions taken or
omitted to be taken by it while it was Administrative Agent under this
Agreement. If no successor administrative agent has accepted appointment as
Administrative Agent by the date which is 30 days following a retiring
Administrative Agent's notice of resignation, the retiring Administrative
Agent's resignation shall nevertheless thereupon become effective and the
Lenders shall perform all of the duties of the Administrative Agent hereunder
until such time, if any, as the Required Lenders appoint a successor agent as
provided for above. Notwithstanding the foregoing, however, Bank of America may
not be removed as Administrative Agent at the request of the Required Lenders
unless Bank of America shall also simultaneously be replaced and fully released
as "L/C Issuer" and "Swing Line Lender" hereunder pursuant to documentation in
form and substance reasonably satisfactory to Bank of America.

         9.12 OTHER AGENTS; LEAD MANAGERS. None of the Lenders identified on the
facing page or signature pages of this Agreement as a "syndication agent,"
"documentation agent," "co-agent" or "lead manager" shall have any right, power,
obligation, liability, responsibility or duty under this Agreement other than
those applicable to all Lenders as such. Without limiting the foregoing, none of
the Lenders so identified shall have or be deemed to have any fiduciary
relationship with any Lender. Each Lender acknowledges that it has not relied,
and will not rely, on any of the Lenders so identified in deciding to enter into
this Agreement or in taking or not taking action hereunder.

                                   ARTICLE X.
                                  MISCELLANEOUS

         10.01 AMENDMENTS, ETC. No amendment or waiver of any provision of this
Agreement or any other Loan Document, and no consent to any departure by the
Borrower or any other Loan Party therefrom, shall be effective unless in writing
signed by the Required Lenders and the Borrower or the applicable Loan Party, as
the case may be, and acknowledged by the Administrative Agent, and each such
waiver or consent shall be effective only in the specific instance and for the
specific purpose for which given; provided, however, that no such amendment,
waiver or consent shall, unless in writing and signed by each of the Lenders
directly affected thereby and by the Borrower, and acknowledged by the
Administrative Agent, do any of the following:

         (a) extend or increase the Commitment of any Lender (or reinstate any
Commitment terminated pursuant to Section 8.02), except for any such increase
made in accordance with Section 2.14;

         (b) postpone any date fixed by this Agreement or any other Loan
Document for any payment or mandatory prepayment of principal, interest, fees or
other amounts due to the Lenders (or any of them) hereunder or under any other
Loan Document;

         (c) reduce or subordinate the principal of, or the rate of interest
specified herein on, any Loan or L/C Borrowing, or (subject to clause (iv) of
the proviso below) any fees or other amounts payable hereunder or under any
other Loan Document;

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         (d) change the percentage of the Aggregate Commitments or of the
aggregate unpaid principal amount of the Loans and L/C Obligations which is
required for the Lenders or any of them to take any action hereunder;

         (e) change the Pro Rata Share or Voting Percentage of any Lender;

         (f) amend this Section, or any provision herein providing for consent
or other action by all the Lenders; or

         (g) release all of, or substantially all of, the Guarantors from any
Guaranty or subordinate any obligation of all or substantially all of the
Guarantors under any Guaranty;

and, provided further, that (i) no amendment, waiver or consent shall, unless in
writing and signed by the L/C Issuer in addition to the Required Lenders or all
the Lenders, as the case may be, affect the rights or duties of the L/C Issuer
under this Agreement or any Letter of Credit Application relating to any Letter
of Credit issued or to be issued by it; (ii) no amendment, waiver or consent
shall, unless in writing and signed by the Swing Line Lender in addition to the
Required Lenders or all the Lenders, as the case may be, affect the rights or
duties of the Swing Line Lender under this Agreement; (iii) no amendment, waiver
or consent shall, unless in writing and signed by the Administrative Agent in
addition to the Required Lenders or all the Lenders, as the case may be, affect
the rights or duties of the Administrative Agent under this Agreement or any
other Loan Document; and (iv) the Agent/Arranger Fee Letter may be amended, or
rights or privileges thereunder waived, in a writing executed only by the
parties thereto. Notwithstanding anything to the contrary herein, any Lender
that has failed to fund any portion of the Revolving Loans, participations in
L/C Obligations or participations in Swing Line Loans required to be funded by
it hereunder shall not have any right to approve or disapprove any amendment,
waiver or consent hereunder, except that the Pro Rata Share of such Lender may
not be increased without the consent of such Lender.

         10.02 NOTICES AND OTHER COMMUNICATIONS; FACSIMILE COPIES.

         (a) General. Unless otherwise expressly provided herein, all notices
and other communications provided for hereunder shall be in writing (including
by facsimile transmission) and mailed, faxed or delivered, to the address,
facsimile number or (subject to subsection (c) below) electronic mail address
specified for notices on Schedule 10.02; or, in the case of the Borrower, the
Administrative Agent, the L/C Issuer or the Swing Line Lender, to such other
address as shall be designated by such party in a notice to the other parties,
and in the case of any other party, to such other address as shall be designated
by such party in a notice to the Borrower, the Administrative Agent, the L/C
Issuer and the Swing Line Lender. All such notices and other communications
shall be deemed to be given or made upon the earlier to occur of (i) actual
receipt by the intended recipient and (ii) (A) if delivered by hand or by
courier, when signed for by the intended recipient; (B) if delivered by mail,
four Business Days after deposit in the mails, postage prepaid; (C) if delivered
by facsimile, when sent and receipt has been confirmed by telephone; and (D) if
delivered by electronic mail (which form of delivery is subject to the
provisions of subsection (c) below), when delivered; provided, however, that
notices and other communications to the Administrative Agent, the L/C Issuer and
the Swing Line Lender pursuant

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to Article II shall not be effective until actually received by such Person. Any
notice or other communication permitted to be given, made or confirmed by
telephone hereunder shall be given, made or confirmed by means of a telephone
call to the intended recipient at the number specified on Schedule 10.02, it
being understood and agreed that a voicemail message shall in no event be
effective as a notice, communication or confirmation hereunder.

         (b) Effectiveness of Facsimile Documents and Signatures. Loan Documents
may be transmitted and/or signed by facsimile. The effectiveness of any such
documents and signatures shall, subject to applicable Law, have the same force
and effect as manually-signed originals and shall be binding on all Loan
Parties, the Administrative Agent and the Lenders. The Administrative Agent may
also require that any such documents and signatures be confirmed by a
manually-signed original thereof; provided, however, that the failure to request
or deliver the same shall not limit the effectiveness of any facsimile document
or signature.

         (c) Limited Use of Electronic Mail. Electronic mail and internet and
intranet websites may be used only to distribute routine communications, such as
financial statements, notices of Borrowings and confirmations of same and other
information, and to distribute Loan Documents for execution by the parties
thereto, and may not be used for any other purpose.

         (d) Reliance by Administrative Agent and Lenders. The Administrative
Agent and the Lenders shall be entitled to rely and act upon any notices
(including telephonic Revolving Loan Notices and Swing Line Loan Notices)
purportedly given by or on behalf of the Borrower even if (i) such notices were
not made in a manner specified herein, were incomplete or were not preceded or
followed by any other form of notice specified herein, or (ii) the terms
thereof, as understood by the recipient, varied from any confirmation thereof.
The Borrower shall indemnify each Agent-Related Person and each Lender from all
losses, costs, expenses and liabilities resulting from the reliance by such
Person on each notice purportedly given by or on behalf of the Borrower. All
telephonic notices to and other communications with the Administrative Agent may
be recorded by the Administrative Agent, and each of the parties hereto hereby
consents to such recording.

         10.03 NO WAIVER; CUMULATIVE REMEDIES. No failure by any Lender or the
Administrative Agent to exercise, and no delay by any such Person in exercising,
any right, remedy, power or privilege hereunder shall operate as a waiver
thereof; nor shall any single or partial exercise of any right, remedy, power or
privilege hereunder preclude any other or further exercise thereof or the
exercise of any other right, remedy, power or privilege. The rights, remedies,
powers and privileges herein or therein provided are cumulative and not
exclusive of any rights, remedies, powers and privileges provided by law.

         10.04 ATTORNEY COSTS, EXPENSES AND TAXES. The Borrower agrees (a) to
pay or reimburse the Administrative Agent for all reasonable costs and expenses
incurred in connection with the development, preparation, negotiation and
execution of this Agreement and the other Loan Documents and any amendment,
waiver, consent or other modification of the provisions hereof and thereof
(whether or not the transactions contemplated hereby or thereby are
consummated), and the consummation and administration of the transactions
contemplated hereby and thereby, including all Attorney Costs, and (b) to pay or
reimburse the Administrative

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Agent and each Lender for all reasonable costs and expenses incurred in
connection with the enforcement, attempted enforcement, or preservation of any
rights or remedies under this Agreement or the other Loan Documents (including
all such costs and expenses incurred during any "workout" or restructuring in
respect of the Obligations and during any legal proceeding, including any
proceeding under any Debtor Relief Law), including all Attorney Costs. The
foregoing costs and expenses shall include all reasonable search, filing,
recording, title insurance and appraisal charges and fees and taxes related
thereto, and other reasonable out-of-pocket expenses incurred by the
Administrative Agent and the reasonable cost of independent public accountants
and other outside experts retained by the Administrative Agent or any Lender.
The agreements in this Section shall survive the termination of the Commitments
and repayment of all the other Obligations.

         10.05 INDEMNIFICATION BY THE BORROWER. WHETHER OR NOT THE TRANSACTIONS
CONTEMPLATED HEREBY ARE CONSUMMATED, THE BORROWER AGREES TO INDEMNIFY, SAVE AND
HOLD HARMLESS EACH AGENT-RELATED PERSON, EACH LENDER AND THEIR RESPECTIVE
AFFILIATES, DIRECTORS, OFFICERS, EMPLOYEES, COUNSEL, AGENTS AND
ATTORNEYS-IN-FACT (COLLECTIVELY THE "INDEMNITEES") FROM AND AGAINST: (A) ANY AND
ALL CLAIMS, DEMANDS, ACTIONS OR CAUSES OF ACTION THAT ARE ASSERTED AGAINST ANY
INDEMNITEE BY ANY PERSON (OTHER THAN THE ADMINISTRATIVE AGENT OR ANY LENDER)
RELATING DIRECTLY OR INDIRECTLY TO A CLAIM, DEMAND, ACTION OR CAUSE OF ACTION
THAT SUCH PERSON ASSERTS OR MAY ASSERT AGAINST ANY LOAN PARTY, ANY AFFILIATE OF
ANY LOAN PARTY OR ANY OF THEIR RESPECTIVE OFFICERS OR DIRECTORS; (B) ANY AND ALL
CLAIMS, DEMANDS, ACTIONS OR CAUSES OF ACTION THAT MAY AT ANY TIME (INCLUDING AT
ANY TIME FOLLOWING REPAYMENT OF THE OBLIGATIONS AND THE RESIGNATION OR REMOVAL
OF THE ADMINISTRATIVE AGENT OR THE REPLACEMENT OF ANY LENDER) BE ASSERTED OR
IMPOSED AGAINST ANY INDEMNITEE, ARISING OUT OF OR RELATING TO, THE LOAN
DOCUMENTS, ANY PREDECESSOR LOAN DOCUMENTS, THE COMMITMENTS, OR THE USE OR
CONTEMPLATED USE OF THE PROCEEDS OF ANY CREDIT EXTENSION; (C) ANY ADMINISTRATIVE
OR INVESTIGATIVE PROCEEDING BY ANY GOVERNMENTAL AUTHORITY ARISING OUT OF OR
RELATED TO A CLAIM, DEMAND, ACTION OR CAUSE OF ACTION DESCRIBED IN SUBSECTION
(A) OR (B) ABOVE; AND (D) ANY AND ALL LIABILITIES (INCLUDING LIABILITIES UNDER
INDEMNITIES), LOSSES, COSTS OR EXPENSES (INCLUDING ATTORNEY COSTS) THAT ANY
INDEMNITEE SUFFERS OR INCURS AS A RESULT OF THE ASSERTION OF ANY FOREGOING
CLAIM, DEMAND, ACTION, CAUSE OF ACTION OR PROCEEDING, OR AS A RESULT OF THE
PREPARATION OF ANY DEFENSE IN CONNECTION WITH ANY FOREGOING CLAIM, DEMAND,
ACTION, CAUSE OF ACTION OR PROCEEDING AS TO WHICH SUCH INDEMNITEE IS A PARTY, IN
ALL CASES, WHETHER OR NOT ARISING OUT OF THE NEGLIGENCE OF AN INDEMNITEE, AND,
EXCEPT AS SPECIFIED HEREIN, WHETHER OR NOT AN INDEMNITEE IS A PARTY TO SUCH
CLAIM, DEMAND, ACTION, CAUSE OF ACTION OR PROCEEDING (ALL THE FOREGOING,
COLLECTIVELY, THE "INDEMNIFIED LIABILITIES"); PROVIDED THAT

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NO INDEMNITEE SHALL BE ENTITLED TO INDEMNIFICATION FOR ANY CLAIM CAUSED BY ITS
OWN GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OR FOR ANY LOSS ASSERTED AGAINST IT
BY ANOTHER INDEMNITEE. THE FOREGOING INDEMNITY SHALL APPLY TO THE NEGLIGENCE OF
THE INDEMNITEE (BUT NOT THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF THE
INDEMNITEE. THE AGREEMENTS IN THIS SECTION SHALL SURVIVE THE TERMINATION OF THE
COMMITMENTS AND REPAYMENT OF ALL THE OTHER OBLIGATIONS.

         10.06 PAYMENTS SET ASIDE. To the extent that the Borrower makes a
payment to the Administrative Agent or any Lender, or the Administrative Agent
or any Lender exercises its right of set-off, and such payment or the proceeds
of such set-off or any part thereof is subsequently invalidated, declared to be
fraudulent or preferential, set aside or required (including pursuant to any
settlement entered into by the Administrative Agent or such Lender in its
discretion) to be repaid to a trustee, receiver or any other party, in
connection with any proceeding under any Debtor Relief Law or otherwise, then
(a) to the extent of such recovery, the obligation or part thereof originally
intended to be satisfied shall be revived and continued in full force and effect
as if such payment had not been made or such set-off had not occurred, and (b)
each Lender severally agrees to pay to the Administrative Agent upon demand its
applicable share of any amount so recovered from or repaid by the Administrative
Agent, plus interest thereon from the date of such demand to the date such
payment is made at a rate per annum equal to the Federal Funds Rate from time to
time in effect.

         10.07 SUCCESSORS AND ASSIGNS.

         (a) The provisions of this Agreement shall be binding upon and inure to
the benefit of the parties hereto and their respective successors and assigns
permitted hereby, except that the Borrower may not assign or otherwise transfer
any of its rights or obligations hereunder without the prior written consent of
each Lender (and any attempted assignment or transfer by the Borrower without
such consent shall be null and void). Nothing in this Agreement, expressed or
implied, shall be construed to confer upon any Person (other than the parties
hereto, their respective successors and assigns permitted hereby and, to the
extent expressly contemplated hereby, the Indemnitees) any legal or equitable
right, remedy or claim under or by reason of this Agreement.

         (b) Any Lender may assign to one or more Eligible Assignees all or a
portion of its rights and obligations under this Agreement (including all or a
portion of its Commitment and the Loans (including for purposes of this
subsection (b), participations in L/C Obligations and in Swing Line Loans) at
the time owing to it); provided that (i) except in the case of an assignment of
the entire remaining amount of the assigning Lender's Commitment and the Loans
at the time owing to it or in the case of an assignment to a Lender or an
Affiliate of a Lender or an Approved Fund with respect to a Lender, the
aggregate amount of the Commitment (which for this purpose includes Loans
outstanding thereunder) subject to each such assignment, determined as of the
date the Assignment and Acceptance with respect to such assignment is delivered
to the Administrative Agent, shall not be less than $5,000,000 unless each of
the Administrative Agent and, so long as no Event of Default has occurred and is
continuing, the Borrower otherwise

                                       67
<PAGE>   73

consents (each such consent not to be unreasonably withheld or delayed), (ii)
each partial assignment shall be made as an assignment of a proportionate part
of all the assigning Lender's rights and obligations under this Agreement with
respect to the Loans or the Commitment assigned, except that this clause (ii)
shall not apply to rights in respect of outstanding Swing Line Loans, and (iii)
the parties to each assignment shall execute and deliver to the Administrative
Agent an Assignment and Acceptance, together with a processing and recordation
fee of $3,500 (provided no such fee shall be required for an assignment to an
Affiliate of a Lender). Subject to acceptance and recording thereof by the
Administrative Agent pursuant to subsection (c) of this Section, from and after
the effective date specified in each Assignment and Acceptance, the Eligible
Assignee thereunder shall be a party hereto and, to the extent of the interest
assigned by such Assignment and Acceptance, have the rights and obligations of a
Lender under this Agreement, and the assigning Lender thereunder shall, to the
extent of the interest assigned by such Assignment and Acceptance, be released
from its obligations under this Agreement (and, in the case of an Assignment and
Acceptance covering all of the assigning Lender's rights and obligations under
this Agreement, such Lender shall cease to be a party hereto but shall continue
to be entitled to the benefits of Sections 3.07 (which accrued to such Lender
prior to such assignment), 10.04 and 10.05). Upon request, the Borrower (at its
expense) shall execute and deliver new or replacement Notes to the assigning
Lender and the assignee Lender. Any assignment or transfer by a Lender of rights
or obligations under this Agreement that does not comply with this subsection
shall be treated for purposes of this Agreement as a sale by such Lender of a
participation in such rights and obligations in accordance with subsection (d)
of this Section.

         (c) The Administrative Agent, acting solely for this purpose as an
agent of the Borrower, shall maintain at the Administrative Agent's Office a
copy of each Assignment and Acceptance delivered to it and a register for the
recordation of the names and addresses of the Lenders, and the Commitments of,
and principal amount of the Loans and L/C Obligations owing to, each Lender
pursuant to the terms hereof from time to time (the "Register"). The entries in
the Register shall be conclusive, and the Borrower, the Administrative Agent and
the Lenders may treat each Person whose name is recorded in the Register
pursuant to the terms hereof as a Lender hereunder for all purposes of this
Agreement, notwithstanding notice to the contrary. The Register shall be
available for inspection by the Borrower and any Lender, at any reasonable time
and from time to time upon reasonable prior notice.

         (d) Any Lender may, without the consent of, or notice to, the Borrower
or the Administrative Agent, sell participations to one or more banks or other
entities (a "Participant") in all or a portion of such Lender's rights and/or
obligations under this Agreement (including all or a portion of its Commitment
and/or the Loans (including such Lender's participations in L/C Obligations
and/or Swing Line Loans) owing to it); provided that (i) such Lender's
obligations under this Agreement shall remain unchanged, (ii) such Lender shall
remain solely responsible to the other parties hereto for the performance of
such obligations and (iii) the Borrower, the Administrative Agent and the other
Lenders shall continue to deal solely and directly with such Lender in
connection with such Lender's rights and obligations under this Agreement. Any
agreement or instrument pursuant to which a Lender sells such a participation
shall provide that such Lender shall retain the sole right to enforce this
Agreement and to approve any amendment, modification or waiver of any provision
of this Agreement; provided that such agreement or

                                       68
<PAGE>   74

instrument may provide that such Lender will not, without the consent of the
Participant, agree to any amendment, waiver or other modification that would (i)
postpone any date upon which any payment of money is scheduled to be paid to
such Participant, (ii) reduce the principal, interest, fees or other amounts
payable to such Participant, or (iii) release any Guarantor from the Guaranty.
Subject to subsection (e) of this Section, the Borrower agrees that each
Participant shall be entitled to the benefits of Sections 3.01, 3.04 and 3.05 to
the same extent as if it were a Lender and had acquired its interest by
assignment pursuant to subsection (b) of this Section. To the extent permitted
by law, each Participant also shall be entitled to the benefits of Section 10.09
as though it were a Lender, provided such Participant agrees to be subject to
Section 2.14 as though it were a Lender.

         (e) A Participant shall not be entitled to receive any greater payment
under Section 3.01 or 3.04 than the applicable Lender would have been entitled
to receive with respect to the participation sold to such Participant, unless
the sale of the participation to such Participant is made with the Borrower's
prior written consent. A Participant that would be a Foreign Lender if it were a
Lender shall not be entitled to the benefits of Section 3.01 unless the Borrower
is notified of the participation sold to such Participant and such Participant
agrees, for the benefit of the Borrower, to comply with Section 10.15 as though
it were a Lender.

         (f) Any Lender may at any time pledge or assign a security interest in
all or any portion of its rights under this Agreement (including under its
Notes, if any) to secure obligations of such Lender, including any pledge or
assignment to secure obligations to a Federal Reserve Bank, without the
requirement for notice to or consent of any Person or the payment of any fee;
provided that no such pledge or assignment shall release a Lender from any of
its obligations hereunder or substitute any such pledgee or assignee for such
Lender as a party hereto.

         (g) If the consent of the Borrower to an assignment or to an Eligible
Assignee is required hereunder (including a consent to an assignment which does
not meet the minimum assignment threshold specified in clause (i) of the proviso
to the first sentence of Section 10.07(b)), the Borrower shall be deemed to have
given its consent ten Business Days after the date notice thereof has been
delivered by the assigning Lender (through the Administrative Agent) unless such
consent is expressly refused by the Borrower prior to such tenth Business Day.

         (h) As used herein, the following terms have the following meanings:

                  "Eligible Assignee" means (a) a Lender; (b) an Affiliate of a
         Lender; (c) an Approved Fund; and (d) any other Person (other than a
         natural Person) approved by the Administrative Agent, in the case of
         any assignment of a Revolving Loan, the L/C Issuer, the Swing Line
         Lender and, unless (x) such Person is taking delivery of an assignment
         in connection with physical settlement of a credit derivatives
         transaction or (y) an Event of Default has occurred and is continuing,
         the Borrower (each such approval not to be unreasonably withheld or
         delayed).

                                       69
<PAGE>   75

                  "Fund" means any Person (other than a natural Person) that is
         (or will be) engaged in making, purchasing, holding or otherwise
         investing in commercial loans and similar extensions of credit in the
         ordinary course of its business.

                  "Approved Fund" means any Fund that is administered or managed
         by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an
         Affiliate of an entity that administers or manages a Lender.

         (i) Notwithstanding anything to the contrary contained herein, if at
any time Bank of America assigns all of its Commitment and Loans pursuant to
subsection (b) above, Bank of America may, (i) upon 30 days' notice to the
Borrower and the Lenders, resign as L/C Issuer and/or (ii) upon five Business
Days' notice to the Borrower, terminate the Swing Line. In the event of any such
resignation as L/C Issuer or termination of the Swing Line, the Borrower shall
be entitled to appoint from among the Lenders a successor L/C Issuer or Swing
Line Lender hereunder; provided, however, that no failure by the Borrower to
appoint any such successor shall affect the resignation of Bank of America as
L/C Issuer or the termination of the Swing Line, as the case may be. Bank of
America shall retain all the rights and obligations of the L/C Issuer hereunder
with respect to all Letters of Credit outstanding as of the effective date of
its resignation as L/C Issuer and all L/C Obligations with respect thereto
(including the right to require the Lenders to make Base Rate Revolving Loans or
fund participations in Unreimbursed Amounts pursuant to Section 2.03(c)). If
Bank of America terminates the Swing Line, it shall retain all the rights of the
Swing Line Lender provided for hereunder with respect to Swing Line Loans made
by it and outstanding as of the effective date of such termination, including
the right to require the Lenders to make Base Rate Committed Loans or fund
participations in outstanding Swing Line Loans pursuant to Section 2.04(c).

         10.08 CONFIDENTIALITY. Each of the Administrative Agent and the Lenders
agrees to maintain the confidentiality of the Information (as defined below),
except that Information may be disclosed (a) to its and its Affiliates'
directors, officers, employees and agents, including accountants, legal counsel
and other advisors (it being understood that the Persons to whom such disclosure
is made will be informed of the confidential nature of such Information and
required to keep such Information confidential); (b) to the extent compelled by
any regulatory authority; (c) to the extent required by applicable laws or
regulations or by any subpoena or similar legal process; (d) to any other party
to this Agreement; (e) in connection with the exercise of any remedies hereunder
or any suit, action or proceeding relating to this Agreement or the enforcement
of rights hereunder; (f) subject to an agreement containing provisions
substantially the same as those of this Section ("Secondary Confidentiality
Agreement"), to (i) any Eligible Assignee of or Participant in, or any
prospective Eligible Assignee of or Participant in, any of its rights or
obligations under this Agreement or (ii) any direct or indirect contractual
counterparty or prospective counterparty (or such contractual counterparty's or
prospective counterparty's professional advisor) to any credit derivative
transaction relating to obligations of the Borrower; (g) with the written
consent of the Borrower; (h) to the extent such Information (i) becomes publicly
available other than as a result of a breach of this Section or (ii) becomes
available to the Administrative Agent or any Lender on a nonconfidential basis
from a source other than the Borrower; or (i) only to the extent required, to
the National Association of Insurance Commissioners or any other similar
organization or any nationally recognized rating agency that

                                       70
<PAGE>   76

requires access to information about a Lender's or its Affiliates' investment
portfolio in connection with ratings issued with respect to such Lender or its
Affiliates. With respect to any disclosure of Information set forth in clause
(b), (c), or (e) above, each Lender agrees to notify the Borrower prior to
disclosure thereof, to cooperate with the Borrower or its Affiliate so that it
may seek a protective order or other protective measure, and to use all
reasonable efforts under the circumstances to ensure that confidential treatment
will be afforded such Information and that the portion of such Information for
which disclosure is not specifically required is not disclosed. For the purposes
of this Section, "Information" means all information received from the Borrower
relating to the Borrower, its Affiliates or their respective businesses, other
than any such information that is available to the Administrative Agent or any
Lender on a nonconfidential basis prior to disclosure by the Borrower; provided
that, in the case of information received from the Borrower after the date
hereof, such information is clearly identified at the time of disclosure as
confidential.

         10.09 SET-OFF. In addition to any rights and remedies of the Lenders
provided by law, upon the occurrence and during the continuance of any Event of
Default, each Lender is authorized at any time and from time to time, without
prior notice to the Borrower or any other Loan Party, any such notice being
waived by the Borrower (on its own behalf and on behalf of each Loan Party) to
the fullest extent permitted by law, to set off and apply any and all deposits
(general or special, time or demand, provisional or final) at any time held by,
and other indebtedness at any time owing by, such Lender to or for the credit or
the account of the respective Loan Parties against any and all Obligations owing
to such Lender, now or hereafter existing, irrespective of whether or not the
Administrative Agent or such Lender shall have made demand under this Agreement
or any other Loan Document and although such Obligations may be contingent or
unmatured. Each Lender agrees promptly to notify the Borrower and the
Administrative Agent after any such set-off and application made by such Lender;
provided, however, that the failure to give such notice shall not affect the
validity of such set-off and application.

         10.10 INTEREST RATE LIMITATION. Notwithstanding anything to the
contrary contained in any Loan Document, the interest paid or agreed to be paid
under the Loan Documents shall not exceed the Highest Lawful Rate. If the
Administrative Agent or any Lender shall receive interest in an amount that
exceeds the Highest Lawful Rate, the excess interest shall be applied to the
principal of the Loans or, if it exceeds such unpaid principal, refunded to the
Borrower. In determining whether the interest contracted for, charged, or
received by the Administrative Agent or a Lender exceeds the Highest Lawful
Rate, such Person may, to the extent permitted by applicable Law, (a)
characterize any payment that is not principal as an expense, fee, or premium
rather than interest, (b) exclude voluntary prepayments and the effects thereof,
and (c) amortize, prorate, allocate, and spread in equal or unequal parts the
total amount of interest throughout the contemplated term of the Obligations.

         10.11 COUNTERPARTS. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

                                       71
<PAGE>   77

         10.12 INTEGRATION. In the event of any conflict between the provisions
of this Agreement and those of any other Loan Document, the provisions of this
Agreement shall control; provided that the inclusion of supplemental rights or
remedies in favor of the Administrative Agent or the Lenders in any other Loan
Document shall not be deemed a conflict with this Agreement. Each Loan Document
was drafted with the joint participation of the respective parties thereto and
shall be construed neither against nor in favor of any party, but rather in
accordance with the fair meaning thereof.

         10.13 SURVIVAL OF REPRESENTATIONS AND WARRANTIES. All representations
and warranties made hereunder and in any other Loan Document or other document
delivered pursuant hereto or thereto or in connection herewith or therewith
shall survive the execution and delivery hereof and thereof. Such
representations and warranties have been or will be relied upon by the
Administrative Agent and each Lender, regardless of any investigation made by
the Administrative Agent or any Lender or on their behalf and notwithstanding
that the Administrative Agent or any Lender may have had notice or knowledge of
any Default or Event of Default at the time of any Credit Extension, and shall
continue in full force and effect as long as any Loan or any other Obligation
shall remain unpaid or unsatisfied or any Letter of Credit shall remain
outstanding.

         10.14 SEVERABILITY. Any provision of this Agreement and the other Loan
Documents to which the Borrower is a party that 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 thereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

         10.15 FOREIGN LENDERS. Each Lender that is a "foreign corporation,
partnership or trust" within the meaning of the Code (a "Foreign Lender") shall
deliver to the Administrative Agent, prior to receipt of any payment subject to
withholding under the Code (or after accepting an assignment of an interest
herein), two duly signed completed copies of either IRS Form W-8BEN or any
successor thereto (relating to such Person and entitling it to an exemption
from, or reduction of, withholding tax on all payments to be made to such Person
by the Borrower pursuant to this Agreement) or IRS Form W-8ECI or any successor
thereto (relating to all payments to be made to such Person by the Borrower
pursuant to this Agreement) or such other evidence satisfactory to the Borrower
and the Administrative Agent that such Person is entitled to an exemption from,
or reduction of, U.S. withholding tax. Thereafter and from time to time, each
such Person shall (a) promptly submit to the Administrative Agent such
additional duly completed and signed copies of one of such forms (or such
successor forms as shall be adopted from time to time by the relevant United
States taxing authorities) as may then be available under then current United
States laws and regulations to avoid, or such evidence as is satisfactory to the
Borrower and the Administrative Agent of any available exemption from or
reduction of, United States withholding taxes in respect of all payments to be
made to such Person by the Borrower pursuant to this Agreement, (b) promptly
notify the Agent of any change in circumstances which would modify or render
invalid any claimed exemption or reduction, and (c) take such steps as shall not
be materially disadvantageous to it, in the reasonable judgment of such Lender,
and as may be reasonably necessary (including the re-designation of its Lending
Office) to avoid any requirement of applicable Laws that the Borrower make any
deduction or withholding for taxes

                                       72
<PAGE>   78

from amounts payable to such Person. If such Person fails to deliver the above
forms or other documentation, then the Administrative Agent may withhold from
any interest payment to such Person an amount equivalent to the applicable
withholding tax imposed by Sections 1441 and 1442 of the Code, without
reduction. If any Governmental Authority asserts that the Administrative Agent
did not properly withhold any tax or other amount from payments made in respect
of such Person, such Person shall indemnify the Administrative Agent therefor,
including all penalties and interest, any taxes imposed by any jurisdiction on
the amounts payable to the Agent under this Section, and costs and expenses
(including Attorney Costs) of the Administrative Agent. The obligation of the
Lenders under this Section shall survive the payment of all Obligations and the
resignation or replacement of the Administrative Agent.

         10.16 REMOVAL AND REPLACEMENT OF LENDERS.

         (a) Under any circumstances set forth herein providing that the
Borrower shall have the right to remove or replace a Lender as a party to this
Agreement, the Borrower may, upon notice to such Lender and the Administrative
Agent, (i) remove such Lender by terminating such Lender's Commitment or (ii)
replace such Lender by causing such Lender to assign its Commitment (without
payment of any assignment fee) pursuant to Section 10.07(b) to one or more other
Lenders or Eligible Assignees procured by the Borrower; provided, however, that
if the Borrower elects to exercise such right with respect to any Lender
pursuant to Section 3.06(b), it shall be obligated to remove or replace, as the
case may be, all Lenders that have made similar requests for compensation
pursuant to Section 3.01 or 3.04. The Borrower shall (x) pay in full all
principal, interest, fees and other amounts owing to such Lender through the
date of termination or assignment (including any amounts payable pursuant to
Section 3.05), (y) provide appropriate assurances and indemnities (which may
include letters of credit) to the L/C Issuer and the Swing Line Lender as each
may reasonably require with respect to any continuing obligation to purchase
participation interests in any L/C Obligations or any Swing Line Loans then
outstanding, and (z) release such Lender from its obligations under the Loan
Documents. Any Lender being replaced shall execute and deliver an Assignment and
Acceptance with respect to such Lender's Commitment and outstanding Credit
Extensions. The Administrative Agent shall distribute an amended Schedule 2.01,
which shall be deemed incorporated into this Agreement, to reflect changes in
the identities of the Lenders and adjustments of their respective Commitments
and/or Pro Rata Shares resulting from any such removal or replacement.

         (b) In order to make all the Lenders' interests in any outstanding
Credit Extensions ratable in accordance with any revised Pro Rata Shares after
giving effect to the removal or replacement of a Lender, the Borrower shall pay
or prepay, if necessary, on the effective date thereof, all outstanding
Revolving Loans of all Lenders, together with any amounts due under Section
3.05. The Borrower may then request Revolving Loans from the Lenders in
accordance with their revised Pro Rata Shares. The Borrower may net any payments
required hereunder against any funds being provided by any Lender or Eligible
Assignee replacing a terminating Lender. The effect for purposes of this
Agreement shall be the same as if separate transfers of funds had been made with
respect thereto.

         (c) This section shall supersede any provision in Section 10.01 to the
contrary.

                                       73
<PAGE>   79

         10.17 EXCEPTIONS TO COVENANTS. Neither the Borrower nor any Subsidiary
shall be deemed to be permitted to take any action or fail to take any action
which is permitted as an exception to any of the covenants contained herein or
which is within the permissible limits of any of the covenants contained herein
if such action or omission would result in the breach of any other covenant
contained herein.

         10.18 NO DUTIES OF DOCUMENTATION AGENT OR SYNDICATION AGENT. The
Borrower and the Lenders acknowledge that the Documentation Agent and the
Syndication Agent shall have no duties, responsibilities or liabilities in their
respective capacities as Documentation Agent and Syndication Agent.

         10.19 EFFECTIVE DATE. Notwithstanding the date of this Agreement or any
other Loan Document, this Agreement and the other Loan Documents shall become
effective on December 5, 2000.

         10.20 GOVERNING LAW.

         (a) THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAW OF THE STATE OF TEXAS APPLICABLE TO AGREEMENTS MADE AND TO BE
PERFORMED ENTIRELY WITHIN SUCH STATE; PROVIDED THAT EACH PARTY SHALL RETAIN ALL
RIGHTS ARISING UNDER FEDERAL LAW.

         (b) ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR
ANY OTHER LOAN DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF TEXAS
SITTING IN DALLAS COUNTY, TEXAS OR OF THE UNITED STATES FOR THE DISTRICT OF SUCH
STATE, AND BY EXECUTION AND DELIVERY OF THIS AGREEMENT, THE BORROWER, THE
ADMINISTRATIVE AGENT AND EACH LENDER CONSENTS, FOR ITSELF AND IN RESPECT OF ITS
PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF THOSE COURTS. THE BORROWER, THE
ADMINISTRATIVE Agent AND EACH LENDER IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING
ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON
CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR
PROCEEDING IN SUCH JURISDICTION IN RESPECT OF ANY LOAN DOCUMENT OR OTHER
DOCUMENT RELATED THERETO. THE BORROWER, THE ADMINISTRATIVE AGENT AND EACH LENDER
WAIVES PERSONAL SERVICE OF ANY SUMMONS, COMPLAINT OR OTHER PROCESS, WHICH MAY BE
MADE BY ANY OTHER MEANS PERMITTED BY THE LAW OF SUCH STATE.

         10.21 WAIVER OF RIGHT TO TRIAL BY JURY. EACH PARTY TO THIS AGREEMENT
HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION
OR CAUSE OF ACTION ARISING UNDER ANY LOAN DOCUMENT OR IN ANY WAY CONNECTED WITH
OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM
WITH RESPECT TO ANY LOAN DOCUMENT, OR THE TRANSACTIONS RELATED THERETO, IN EACH
CASE

                                       74
<PAGE>   80

WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER FOUNDED IN CONTRACT OR
TORT OR OTHERWISE; AND EACH PARTY HEREBY AGREES AND CONSENTS THAT ANY SUCH
CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT
A JURY, AND THAT ANY PARTY TO THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR
A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE
SIGNATORIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

         10.22 ENTIRE AGREEMENT. THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS
REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY
EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE
PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

                                       75
<PAGE>   81

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed as of the date first above written.

                                       ELCOR CORPORATION

                                       By:
                                             ----------------------------------
                                             Richard J. Rosebery
                                             Vice Chairman, Chief Financial
                                             Officer and Administrative Officer

                                       BANK OF AMERICA, N.A., as
                                       Administrative Agent

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

                                       BANK OF AMERICA, N.A., as a Lender, L/C
                                       Issuer and Swing Line Lender

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

                                       BANK ONE, TEXAS, N.A., as a Lender and
                                       Documentation Agent

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

                                       76
<PAGE>   82

                                       FIRST UNION NATIONAL BANK, N.A., as a
                                       Lender and Syndication Agent

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

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

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

                                       THE FROST NATIONAL BANK, as a Lender

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

                                       COMERICA BANK-TEXAS, as a Lender

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

                                       77
<PAGE>   83

                                                                   SCHEDULE 2.01

                                   COMMITMENTS
                               AND PRO RATA SHARES

<TABLE>
<CAPTION>
                      LENDER                                    COMMITMENT                     PRO RATA SHARE
                      ------                                    ----------                     --------------
<S>                                                            <C>                             <C>
Bank of America, N.A.                                          $ 50,000,000                     28.571428571%
First Union National Bank, N.A.                                $ 32,500,000                     18.571428571%
Bank One, Texas, N.A.                                          $ 32,500,000                     18.571428571%
Comerica Bank-Texas                                            $ 25,000,000                     14.285714286%
The Frost National Bank                                        $ 20,000,000                     11.428571429%
The Bank of Tokyo-Mitsubishi, Ltd.                             $ 15,000,000                      8.571428572%
         TOTAL
                                                               $175,000,000                    100.000000000%
</TABLE>

<PAGE>   84

                                                                   SCHEDULE 2.03

                           EXISTING LETTERS OF CREDIT

<TABLE>
<CAPTION>
                AMOUNT                         BENEFICIARY                                     EXPIRATION DATE
                ------                         -----------                                     ---------------
<S>                                      <C>                                                 <C>
             $1,300,000.00               Hartford Fire Insurance                              November 29, 2001
             $  905,000.00               Pacific Employers Insurance                          December 30, 2000
             $  477,250.00               Commonwealth of Pennsylvania                          March 10, 2001
</TABLE>

<PAGE>   85

                                                                   SCHEDULE 5.06

                                   LITIGATION

The information in this schedule is confidential and has been omitted.

<PAGE>   86

                                                                   SCHEDULE 5.09

                              ENVIRONMENTAL MATTERS

The information in this schedule is confidential and has been omitted.

<PAGE>   87

                                                                   SCHEDULE 5.13

                                  SUBSIDIARIES
                          AND OTHER EQUITY INVESTMENTS

The information in this schedule is confidential and has been omitted.

<PAGE>   88

                                                                   SCHEDULE 7.01

                                 EXISTING LIENS

                                  CONFIDENTIAL

         The following is Schedule 7.01 to the Credit Agreement (herein so
called) dated November 30, 2000, among Elcor Corporation (the "Company"),
certain lenders, Bank of America, N.A., as Administrative Agent, Swing Line
Lender and L/C Issuer, Bank One, Texas, N.A., as Documentation Agent, and First
Union Bank, as Syndication Agent. Terms used but not defined in this Schedule
will have the meanings assigned to them in the Credit Agreement.

         As of the date hereof, the following are Liens described in Section
7.01(g) of the Credit Agreement:

         NONE.

<PAGE>   89

                                                                  SCHEDULE 10.02

                    EURODOLLAR AND DOMESTIC LENDING OFFICES,
                              ADDRESSES FOR NOTICES

Elcor Corporation
Wellington Center, Suite 1000
14643 Dallas Parkway
Dallas, Texas 75240-8871
Attn:    Harold R. Beattie, Jr.
         Vice President, Finance & Treasurer
         Telephone: (972) 851-0523
         Facsimile: (972) 851-0550
         Electronic Mail: hbeattie@elcor.com

With a copy to:

GENERAL COUNSEL

BANK OF AMERICA
Administrative Agent's Office and Bank of America's Lending Office
(for payments and Requests for Credit Extensions):
Bank of America, N.A.
901 Main Street
Mail Code:  TX1-492-14-14
Dallas, Texas 75202
Attention:  Monica Barnes
         Telephone: (214) 209-9289
         Facsimile: (214) 209-9442
         Electronic Mail:  monica.t.barnes@bankofamerica.com
Account No.:  129-2000-883
Ref:  Elcor Corporation
ABA# 111000012

L/C Issuer:
Bank of America, N.A.
Trade Operations-Los Angeles #22621
333 S. Beaudry Avenue, 19th Floor
Mail Code:  CA9-703-19-23
Los Angeles, CA 90017-1466
Attention:  Sandra Leon
            Vice President
            Telephone:  213.345.5231
            Facsimile:  213.345.6694
            Electronic Mail:  Sandra.Leon@bankofamerica.com

<PAGE>   90

Other Notices as Administrative Agent:
Bank of America, N.A.
Agency Management
231 South LaSalle Street
Mail Code:  IL1-231-08-30
Chicago, Illinois 60195
Attention:  David A. Johanson
            Vice President
            Telephone:  (312) 828-7933
            Facsimile:  (877) 206-8410
            Electronic Mail:  david.johanson@bankofamerica.com

Other Notices as a Lender:
Bank of America, N.A.
901 Main Street
Mail Code:  TX1-492-07-04
Dallas, Texas 75202
Attention:  Curtis Anderson
            Telephone:  (214) 209-0310
            Facsimile:  (214) 209-3140
            Electronic Mail:  curtis.anderson@bankofamerica.com

BANK ONE, TEXAS, N.A.
Requests for Credit Extensions:
1717 Main Street, 4th Floor
Mail Code:  TX1-2454
Dallas, Texas 75201
Attn:    Michael Liska
         Operations Officer
         Telephone:  (214) 290-2454
         Facsimile:  (214) 290-3930
         Electronic Mail: keven_d_smith@bankone.com
         Account No.  243 2652 12 Account Name:  LS2 Incoming Wiring ACCT
         Ref:     Elcor Corporation
         ABA#     111 000 614

Notices (other than Requests for Credit Extensions):
1717 Main Street, 3rd Floor
Mail Code:  TX1-2436
Dallas, Texas 75201
Attn:    Keven Smith
         Underwriter
         Telephone:  (214) 290-2419
         Facsimile:  (214) 290-2765
         Electronic Mail: michael_p_liska@bankone.com

<PAGE>   91

FIRST UNION NATIONAL BANK, N.A.
Requests for Credit Extensions:
201 South College Street
CP 2420
Charlotte, North Carolina 28288
Attn:    Lisa White
         Loan Portfolio Analyst
         Telephone:  (704) 374-4426
         Facsimile:  (704) 374-2802
         Electronic Mail:  lisa.white@capmark.funb.com
         Account No.  1459168107013    Account Name:  Diversified Manufacturing
         Ref:  Elcor Corporation       Attn:  Lisa White
         ABA#  053 000219

Notices (other than Requests for Credit Extensions):
201 South College Street, 6th Floor
Charlotte, North Carolina 28288
Attn:    David Hauglid
         Vice President
         Telephone:  (704) 383-3544
         Facsimile:  (704) 715-1117
         Electronic Mail:  david.hauglid@funb.com

THE BANK OF TOKYO-MITSUBISHI, LTD.
Requests for Credit Extensions:
1100 Louisiana, Suite 2800
Houston, Texas 77002
Attn:    Nadra Brier
         Admin.
         Telephone:  (713) 655-3847
         Facsimile:  (713) 658-0116
         Electronic Mail: nbreir@btmna.com
         Account No.  30001710         Account Name:  BTM-Houston Agency
         Ref:
         ABA#  0260-0963-2

Notices (other than Requests for Credit Extensions):
2001 Ross Avenue, Suite 3150
Dallas, Texas 75201
Attn:    Doug Barnell
         Vice President
         Telephone:  (214) 954-1200, ext. 105
         Facsimile:  (214) 954-1007
         Electronic Mail:  dbarnell@btmny.com

<PAGE>   92

THE FROST NATIONAL BANK
Requests for Credit Extensions:
100 West Houston
San Antonio, Texas 78205
Attn:    Janice Hill
         Admin. Officer
         Telephone:  (210) 220-4235
         Facsimile:  (210) 220-4389
         Electronic Mail: jhill@frostbank.com
         Account No.  8338550          Account Name:  Elcor Corporation
         Ref:                                         Attn: Janice Hill
         ABA#  114-000-093

Notices (other than Requests for Credit Extensions):
2727 North Harwood, 10th Floor
Dallas, Texas 75248
Attn:    David L. Perdue
         Senior Vice President
         Telephone:  (214) 515-4908
         Facsimile:  (214) 515-4955
         Electronic Mail:  dave.perdue@frostbank.com

COMERICA BANK-TEXAS
Requests for Credit Extensions:
8850 Boedeker, 4th Floor
Dallas, Texas 75225
Attn:    Joan Hank
         Lending Assistant
         Telephone:  (214) 890-5123
         Facsimile:  (214) 890-5186
         Electronic Mail: joan_e_hank@comerica.com
         Account No.  21585-90010      Account Name:  Commercial Loan Servicing
         Ref:     Elcor Corporation Obligor #1397885168
         ABA#     111000753

Notices (other than Requests for Credit Extensions):
8850 Boedeker, 4th Floor
Dallas, Texas 75225
Attn:    Matt Love
         Corporate Banking Officer
         Telephone:  (214) 890-5146
         Facsimile:  (214) 890-5186
         Electronic Mail:  matt_g_love@comerica.com

<PAGE>   93

                                                                       EXHIBIT A

                          FORM OF REVOLVING LOAN NOTICE

                                                       Date:  ___________, _____

To:      Bank of America, N.A., as Administrative Agent

Ladies and Gentlemen:

         Reference is made to that certain Credit Agreement, dated as of
___________, 2000 (as amended, restated, extended, supplemented or otherwise
modified in writing from time to time, the "Agreement;" the terms defined
therein being used herein as therein defined), among Elcor Corporation (the
"Borrower"), the Lenders from time to time party thereto, and Bank of America,
N.A., as Administrative Agent, L/C Issuer and Swing Line Lender.

         The undersigned hereby requests (select one):

         [ ]  A Borrowing of Revolving Loans   [ ] A conversion or continuation
                                                   of Revolving Loans

         1.       On                                   (a Business Day).
                     ---------------------------------

         2.       In the amount of $                                  .
                                    ----------------------------------
         3.       Comprised of                                        .
                               ---------------------------------------
                                [Type of Revolving Loan requested]

         4.       For Eurodollar Rate Loans:  with an Interest Period of
                         months.
                  ------

         [The Revolving Borrowing requested herein complies with the proviso to
the first sentence of Section 2.01 of the Agreement.]

                                      [BORROWER]

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

                                 Exhibit A - 1
<PAGE>   94

                                                                       EXHIBIT B

                         FORM OF SWING LINE LOAN NOTICE

                                                       Date:  ___________, _____

To:      Bank of America, N.A., as Swing Line Lender
         Bank of America, N.A., as Administrative Agent

Ladies and Gentlemen:

         Reference is made to that certain Credit Agreement, dated as of
____________, 2000 (as amended, restated, extended, supplemented or otherwise
modified in writing from time to time, the "Agreement;" the terms defined
therein being used herein as therein defined), among Elcor Corporation (the
"Borrower"), the Lenders from time to time party thereto, and Bank of America,
N.A., as Administrative Agent, L/C Issuer and Swing Line Lender.

         The undersigned hereby requests a Swing Line Loan:

         1.       On                                         (a Business Day).
                     ----------------------------------------

         2.       In the amount of $                                  .
                                    ----------------------------------

         The Swing Line Borrowing requested herein complies with the
requirements of the first proviso to the first sentence of Section 2.04(a) of
the Agreement.

                                      [BORROWER]

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

                                 Exhibit B - 1
<PAGE>   95

                                                                       EXHIBIT C

                           FORM OF REVOLVING LOAN NOTE

$
 ----------------------

         FOR VALUE RECEIVED, ELCOR CORPORATION, a Delaware corporation (the
"Borrower"), hereby promises to pay to the order of ___________________________
(the "Lender"), on the Maturity Date (as defined in the Credit Agreement
referred to below) the principal amount of __________________Dollars
($____________), or such lesser principal amount of Revolving Loans (as defined
in such Credit Agreement) due and payable by the Borrower to the Lender on the
Maturity Date under that certain Credit Agreement, dated as of
__________________, 2000 (as amended, restated, extended, supplemented or
otherwise modified in writing from time to time, the "Agreement;" the terms
defined therein being used herein as therein defined), among the Borrower, the
Lenders from time to time party thereto, and Bank of America, N.A., as
Administrative Agent, L/C Issuer and Swing Line Lender.

         The Borrower promises to pay interest on the unpaid principal amount of
each Revolving Loan from the date of such Revolving Loan until such principal
amount is paid in full, at such interest rates, and at such times as are
specified in the Agreement. All payments of principal and interest shall be made
to the Administrative Agent for the account of the Lender in Dollars in
immediately available funds at the Administrative Agent's Office. If any amount
is not paid in full when due hereunder, such unpaid amount shall bear interest,
to be paid upon demand, from the due date thereof until the date of actual
payment (and before as well as after judgment) computed at the per annum rate
set forth in the Agreement.

         This Note is one of the Revolving Loan Notes referred to in the
Agreement, is entitled to the benefits thereof and is subject to optional and
mandatory prepayment in whole or in part as provided therein. This Note is also
entitled to the benefits of the Guaranty. Upon the occurrence of one or more of
the Events of Default specified in the 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 Agreement. Revolving Loans made by the Lender
shall be evidenced by one or more loan accounts or records maintained by the
Lender in the ordinary course of business. The Lender may also attach schedules
to this Note and endorse thereon the date, amount and maturity of its Revolving
Loans and payments with respect thereto.

         The Borrower, for itself, its successors and assigns, hereby waives
diligence, presentment, protest and demand and notice of protest, demand, intent
to accelerate, acceleration, dishonor and non-payment of this Note.

                                 Exhibit C - 1
<PAGE>   96

         THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF TEXAS.

                                      ELCOR CORPORATION

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

                                 Exhibit C - 2

<PAGE>   97

                REVOLVING LOANS AND PAYMENTS WITH RESPECT THERETO

<TABLE>
<CAPTION>
                                                                AMOUNT OF        OUTSTANDING
                                                              PRINCIPAL OR       PRINCIPAL
           TYPE OF LOAN  AMOUNT OF LOAN   END OF INTEREST    INTEREST PAID      BALANCE THIS
  DATE         MADE           MADE             PERIOD          THIS DATE            DATE        NOTATION MADE BY
  ----     ------------  --------------   ---------------     ------------      ------------    -----------------
<S>        <C>           <C>              <C>                 <C>               <C>             <C>
----------  ----------     ----------       ----------         ----------        ----------        ----------
----------  ----------     ----------       ----------         ----------        ----------        ----------
----------  ----------     ----------       ----------         ----------        ----------        ----------
----------  ----------     ----------       ----------         ----------        ----------        ----------
----------  ----------     ----------       ----------         ----------        ----------        ----------
----------  ----------     ----------       ----------         ----------        ----------        ----------
----------  ----------     ----------       ----------         ----------        ----------        ----------
----------  ----------     ----------       ----------         ----------        ----------        ----------
----------  ----------     ----------       ----------         ----------        ----------        ----------
----------  ----------     ----------       ----------         ----------        ----------        ----------
----------  ----------     ----------       ----------         ----------        ----------        ----------
----------  ----------     ----------       ----------         ----------        ----------        ----------
----------  ----------     ----------       ----------         ----------        ----------        ----------
----------  ----------     ----------       ----------         ----------        ----------        ----------
----------  ----------     ----------       ----------         ----------        ----------        ----------
----------  ----------     ----------       ----------         ----------        ----------        ----------
----------  ----------     ----------       ----------         ----------        ----------        ----------
----------  ----------     ----------       ----------         ----------        ----------        ----------
</TABLE>

                                 Exhibit C - 3

<PAGE>   98

                                                                       EXHIBIT D

                             FORM OF SWING LINE NOTE

$10,000,000

         FOR VALUE RECEIVED, ELCOR CORPORATION (the "Borrower"), hereby promises
to pay to the order of BANK OF AMERICA, N.A. ("Swing Line Lender"), on the date
when due in accordance with the Credit Agreement referred to below, the
aggregate principal amount of each Swing Line Loan from time to time made by the
Swing Line Lender to the Borrower under that certain Credit Agreement, dated as
of ____________, 2000 (as amended, restated, extended, supplemented or otherwise
modified in writing from time to time, the "Agreement;" the terms defined
therein being used herein as therein defined), among the Borrower, the Lenders
from time to time party thereto, and Bank of America, N.A., as Administrative
Agent, L/C Issuer and Swing Line Lender.

         The Borrower promises to pay interest on the unpaid principal amount of
each Swing Line Loan from the date of such Swing Line Loan until such principal
amount is paid in full, at such interest rates and at such times as provided in
the Agreement.

         All payments of principal and interest shall be made to the Swing Line
Lender in Dollars in immediately available funds at its Lending Office.

         If any amount is not paid in full when due hereunder, such unpaid
amount shall bear interest, to be paid upon demand, from the due date thereof
until the date of actual payment (and before as well as after judgment) computed
at the per annum rate set forth in the Agreement.

         This Note is the Swing Line Note referred to in the Agreement, is
entitled to the benefits thereof and is subject to optional and mandatory
prepayment in whole or in part as provided therein. This Note is also entitled
to the benefits of the Guaranty. Upon the occurrence of one or more of the
Events of Default specified in the 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 Agreement. Swing Line Loans made by the Swing Line Lender
shall be evidenced by one or more loan accounts or records maintained by Swing
Line Lender in the ordinary course of business. The Swing Line Lender may also
attach schedules to this Note and endorse thereon the date, amount and maturity
of the Swing Line Loans and payments with respect thereto.

         The Borrower, for itself, its successors and assigns, hereby waives
diligence, presentment, protest and demand and notice of protest, demand, intent
to accelerate, acceleration, dishonor and non-payment of this Note.

                                 Exhibit D - 1

<PAGE>   99

         THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF TEXAS.

                                      ELCOR CORPORATION

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

                                  Exhibit D - 2

<PAGE>   100

               SWING LINE LOANS AND PAYMENTS WITH RESPECT THERETO
<TABLE>
<CAPTION>

                                              AMOUNT OF PRINCIPAL OR        OUTSTANDING PRINCIPAL
       DATE           AMOUNT OF LOAN MADE    INTEREST PAID THIS DATE          BALANCE THIS DATE            NOTATION MADE BY
       ----           -------------------    -----------------------        ---------------------          ----------------
<S>                   <C>                       <C>                          <C>                          <C>
  ----------------     ----------------         -----------------            ------------------           -----------------
  ----------------     ----------------         -----------------            ------------------           -----------------
  ----------------     ----------------         -----------------            ------------------           -----------------
  ----------------     ----------------         -----------------            ------------------           -----------------
  ----------------     ----------------         -----------------            ------------------           -----------------
  ----------------     ----------------         -----------------            ------------------           -----------------
  ----------------     ----------------         -----------------            ------------------           -----------------
  ----------------     ----------------         -----------------            ------------------           -----------------
  ----------------     ----------------         -----------------            ------------------           -----------------
  ----------------     ----------------         -----------------            ------------------           -----------------
  ----------------     ----------------         -----------------            ------------------           -----------------
  ----------------     ----------------         -----------------            ------------------           -----------------
  ----------------     ----------------         -----------------            ------------------           -----------------
  ----------------     ----------------         -----------------            ------------------           -----------------
  ----------------     ----------------         -----------------            ------------------           -----------------
  ----------------     ----------------         -----------------            ------------------           -----------------
  ----------------     ----------------         -----------------            ------------------           -----------------
  ----------------     ----------------         -----------------            ------------------           -----------------
</TABLE>

                                  Exhibit D-3
<PAGE>   101

                                                                       EXHIBIT E
                         FORM OF COMPLIANCE CERTIFICATE

                                          Financial Statement Date:
                                                                   -------------

To:      Bank of America, N.A., as Administrative Agent

Ladies and Gentlemen:

         Reference is made to that certain Credit Agreement, dated as of
____________, 2000 (as amended, restated, extended, supplemented or otherwise
modified in writing from time to time, the "Agreement;" the terms defined
therein being used herein as therein defined), among Elcor Corporation (the
"Borrower"), the Lenders from time to time party thereto, and Bank of America,
N.A., as Administrative Agent, L/C Issuer and Swing Line Lender.

         The undersigned Responsible Officer hereby certifies as of the date
hereof that he/she is the __________ of the Borrower, and that, as such, he/she
is authorized to execute and deliver this Certificate to the Administrative
Agent on the behalf of the Borrower, and that:

  [Use following for fiscal YEAR-END financial statements]

         1. Attached hereto as Schedule 1 are the year-end audited financial
statements required by Section 6.01(a) of the Agreement for the fiscal year of
the Borrower ended as of the above date, together with the report and opinion of
an independent certified public accountant required by such section.

[Use following for fiscal QUARTER-END financial statements]

         1. Attached hereto as Schedule 1 are the unaudited financial statements
required by Section 6.01(b) of the Agreement for the fiscal quarter of the
Borrower ended as of the above date. Such financial statements fairly present
the financial condition, results of operations and cash flows of the Borrower
and its Subsidiaries in accordance with GAAP as at such date and for such
period, subject only to normal year-end audit adjustments and the absence of
footnotes.

         2. The undersigned has reviewed and is familiar with the terms of the
Agreement and has made, or has caused to be made under his/her supervision, a
detailed review of the transactions and condition (financial or otherwise) of
the Borrower during the accounting period covered by the attached financial
statements.

         3. A review of the activities of the Borrower during such fiscal period
has been made under the supervision of the undersigned with a view to
determining whether during such fiscal period the Borrower performed and
observed all its Obligations under the Loan Documents, and

[SELECT ONE:]

                                 Exhibit E - 1

<PAGE>   102

         [TO THE BEST KNOWLEDGE OF THE UNDERSIGNED DURING SUCH FISCAL PERIOD,
THE BORROWER PERFORMED AND OBSERVED EACH COVENANT AND CONDITION OF THE LOAN
DOCUMENTS APPLICABLE TO IT.]

--OR--
         [THE FOLLOWING COVENANTS OR CONDITIONS HAVE NOT BEEN PERFORMED OR
OBSERVED AND THE FOLLOWING IS A LIST OF EACH SUCH DEFAULT OR EVENT OF DEFAULT
AND ITS NATURE AND STATUS:]

         4. The financial covenant analyses and information set forth on
Schedule 2 attached hereto are true and accurate on and as of the date of this
Certificate.

         IN WITNESS WHEREOF, the undersigned has executed this Certificate as
of _________, __________.

                                      ELCOR CORPORATION

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

                                 Exhibit E - 2

<PAGE>   103

        For the Quarter/Year ended                    ("Statement Date")
                                   -------------------

                                   SCHEDULE 2
                          to the Compliance Certificate
                                  ($ in 000's)

<TABLE>
<S>                                                                              <C>
I.       LEVERAGE RATIO - FOR DETERMINATION OF APPLICABLE RATE

         A.       Consolidated EBITDA for four consecutive fiscal quarters
                  ending on above date ("Subject Period":

                  1.       Consolidated Adjusted Net Income for Subject Period:  $__________

                  2.       Consolidated Interest Expense for Subject Period:     $__________

                  3.       Provision for income taxes for Subject Period:        $__________

                  4.       Depreciation expenses and Amortization expenses for
                           intangibles for Subject Period:                       $__________

                  5.       Trailing 4 fiscal quarters of Consolidated EBITDA of
                           assets acquired during Subject Period                 $__________

                  6.       Trailing 4 fiscal quarters of Consolidated EBITDA of
                           assets disposed of during Subject Period              $__________

                  7.       Consolidated EBITDA (Lines I.A 1+2+3+4+5+6)           $__________

         B.       Consolidated Funded Indebtedness at Statement Date:            $__________

         C.       Leverage Ratio (Line I.A.7 / Line I.B.)                        $__________

II.      SECTION 7.05 - RESTRICTED PAYMENTS.

         A.       Base                                                           $15,000,000

         B.       35% of cumulative Consolidated Net Income (100% in case of
                  a deficit) commencing July 1, 2000                             $__________

         C.       Amounts received from sale or disposition of Capital Stock
                  acquired in a Treasury Stock Purchase                          $__________

         D.       Amount Available for Restricted Payments (Lines II.A.+
                  (or minus if a deficit) II.B. + II.C.)                         $__________

         E.       Restricted Payments made during term of Agreement              $__________

         F.       Excess Available for Restricted Payments (Line II.D. -
                  II.E.)                                                         $__________

III.     SECTION 7.12(a) - CONSOLIDATED NET WORTH.

         A.       Actual Consolidated Net Worth at Statement Date:               $__________
</TABLE>

                                 Exhibit E - 3
<PAGE>   104

<TABLE>
<S>                                                                              <C>
         B.       65% of Consolidated Net Income for each fiscal quarter
                  ending after June 30, 2000 (no reduction for losses):          $__________

         C.       100% of increases in Shareholders' Equity after date of
                  Agreement from issuance and sale of capital stock (including
                  from conversion of debt securities, but excluding treasury
                  stock):                                                        $__________

         D.       Minimum required Consolidated Net Worth (Lines III.B + III.C
                  plus -$135,000,000):                                           $__________

         E.       Excess (deficient) for covenant compliance (Line III.A -
                  III.D):                                                        $__________

IV.      SECTION 7.13(b) - INTEREST COVERAGE RATIO.

         A.       Consolidated EBIT for four consecutive fiscal quarters ending on above date
                  ("Subject Period"):

                  1.       Consolidated Adjusted Net Income for Subject Period:  $__________

                  2.       Consolidated Interest Expense for Subject Period:     $__________

                  3.       Provision for income taxes for Subject Period:        $__________

                  4.       Consolidated EBIT (Lines IV.A.1 + 2 + 3):             $__________

         B.       Consolidated Interest Charges for Subject Period:              $__________

         C.       Interest Coverage Ratio (Line IV.A.4) / (Line IV.B):            ______ to 1
</TABLE>

<TABLE>
<CAPTION>

             Minimum required:
                                                            MINIMUM INTEREST
             FISCAL QUARTERS ENDING                          COVERAGE RATIO
             ----------------------                         ----------------
<S>                                                         <C>
             Closing Date through 3/31/02                      3.00 to 1
             6/30/02 and each fiscal quarter thereafter        3.50 to 1
</TABLE>

<TABLE>
<S>                                                                             <C>
V.       SECTION 7.13(c) - CAPITALIZATION RATIO.

         A.       Consolidated Funded Indebtedness at Statement Date:            $__________

         B.       Capitalization:                    :                           $__________

                  1.       Consolidated Funded Indebtedness at Statement Date:   $__________

                  2.       Consolidated Net Worth (Line III.A. above):           $__________

                  3.       Capitalization (Lines V.B.1+2):                       $__________

         C.       Capitalization Ratio (Line V.A) / (Line V.B.3):                 _____ to 1
</TABLE>

                                 Exhibit E - 4
<PAGE>   105

<TABLE>
<S>                                                 <C>
         Maximum allowed:                            0.45 to 1
</TABLE>

                                 Exhibit E - 5
<PAGE>   106

                                                                       EXHIBIT F

                        FORM OF ASSIGNMENT AND ACCEPTANCE

         Reference is made to that certain Credit Agreement, dated as of
___________, 2000 (as amended, restated, extended, supplemented or otherwise
modified in writing from time to time, the "Agreement;" the terms defined
therein being used herein as therein defined), among Elcor Corporation, a
Delaware corporation (the "Borrower"), the Lenders from time to time party
thereto, and Bank of America, N.A., as Administrative Agent, L/C Issuer and
Swing Line Lender.

         The assignor identified on the signature page hereto (the "Assignor")
and the assignee identified on the signature page hereto (the "Assignee") agree
as follows:

         1. (a) Subject to paragraph 11, effective as of the date specified on
Schedule 1 hereto (the "Effective Date"), the Assignor hereby irrevocably sells
and assigns to the Assignee without recourse to the Assignor, and the Assignee
hereby irrevocably purchases and assumes from the Assignor without recourse to
the Assignor, the interest described on Schedule 1 hereto (the "Assigned
Interest") in and to the Assignor's rights and obligations under the Agreement.

         (b) From and after the Effective Date, (i) the Assignee shall be a
party under the Agreement and will have all the rights and obligations of a
Lender for all purposes under the Loan Documents to the extent of the Assigned
Interest and be bound by the provisions thereof, and (ii) the Assignor shall
relinquish its rights and be released from its obligations under the Agreement
to the extent of the Assigned Interest. The Assignor and/or the Assignee, as
agreed by the Assignor and the Assignee, shall deliver, in immediately available
funds, any applicable assignment fee required under Section 10.07(b) of the
Agreement.

         2. On the Effective Date, the Assignee shall pay to the Assignor, in
immediately available funds, an amount equal to the purchase price of the
Assigned Interest as agreed upon by the Assignor and the Assignee.

         3. From and after the Effective Date, the Administrative Agent shall
make all payments under the Agreement and the Notes, if any, in respect of the
Assigned Interest (including all payments of principal, interest and fees with
respect thereto) to the Assignee. The Assignor and the Assignee shall make all
appropriate adjustments in payments under the Agreement and such Notes, if any,
for periods prior to the Effective Date directly between themselves.

         4.       The Assignor represents and warrants to the Assignee that:

                  (a) The Assignor is the legal and beneficial owner of the
         Assigned Interest, and the Assigned Interest is free and clear of any
         adverse claim;

                  (b) the Assigned Interest listed on Schedule 1 accurately and
         completely sets forth the Outstanding Amount of all Loans and L/C
         Obligations relating to the Assigned Interest as of the Effective Date;

                                 Exhibit F - 1
<PAGE>   107

                  (c) it has the power and authority and the legal right to
         make, deliver and perform, and has taken all necessary action, to
         authorize the execution, delivery and performance of this Assignment
         and Acceptance, and any and all other documents delivered by it in
         connection herewith and to fulfill its obligations under, and to
         consummate the transactions contemplated by, this Assignment and
         Acceptance and the Loan Documents, and no consent or authorization of,
         filing with, or other act by or in respect of any Governmental
         Authority, is required in connection in connection herewith or
         therewith; and

                  (d) this Assignment and Acceptance constitutes the legal,
         valid and binding obligation of the Assignor.

         The Assignor makes no representation or warranty and assumes no
responsibility with respect to the financial condition of the Borrower or any of
its Affiliates or the performance by the Borrower or any of its Affiliates of
their respective obligations under the Loan Documents, and assumes no
responsibility with respect to any statements, warranties or representations
made under or in connection with any Loan Document or the execution, legality,
validity, enforceability, genuineness, sufficiency or value of any Loan Document
other than as expressly set forth above.

         5. The Assignee represents and warrants to the Assignor and the
Administrative Agent that:

                  (e) the Assignee has received a copy of the Agreement,
         together with copies of the most recent financial statements of the
         Borrower delivered pursuant thereto, and such (a) it is an Eligible
         Assignee;

                  (b) it has the full power and authority and the legal right to
         make, deliver and perform, and has taken all necessary action, to
         authorize the execution, delivery and performance of this Assignment
         and Acceptance, and any and all other documents delivered by it in
         connection herewith and to fulfill its obligations under, and to
         consummate the transactions contemplated by, this Assignment and
         Acceptance and the Loan Documents, and no consent or authorization of,
         filing with, or other act by or in respect of any Governmental
         Authority, is required in connection in connection herewith or
         therewith;

                  (c) this Assignment and Acceptance constitutes the legal,
         valid and binding obligation of the Assignee;

                  (d) under applicable Laws no tax will be required to be
         withheld by the Administrative Agent or the Borrower with respect to
         any payments to be made to the Assignee hereunder or under any Loan
         Document, and unless otherwise indicated in the space opposite the
         Assignee's signature below, no tax forms described in Section 10.15 of
         the Agreement are required to be delivered by the Assignee; and

                                 Exhibit F - 2
<PAGE>   108

                  other documents and information as it has deemed appropriate
         to make its own credit analysis and decision to enter into this
         Assignment and Acceptance. The Assignee has independently and without
         reliance upon the Assignor or the Administrative Agent and based on
         such information as the Assignee has deemed appropriate, made its own
         credit analysis and decision to enter into this Assignment and
         Acceptance. The Assignee will, independently and without reliance upon
         the Administrative Agent or any Lender, and based upon such documents
         and information as it shall deem appropriate at the time, continue to
         make its own credit decisions in taking or not taking action under the
         Agreement.

         6. The Assignee appoints and authorizes the Administrative Agent to
take such action as agent on its behalf and to exercise such powers and
discretion under the Agreement, the other Loan Documents or any other instrument
or document furnished pursuant hereto or thereto as are delegated to the
Administrative Agent by the terms thereof, together with such powers as are
incidental thereto.

         7. If either the Assignee or the Assignor desires a Note to evidence
its Loans, it shall request the Administrative Agent to procure a Note from the
Borrower.

         8. The Assignor and the Assignee agree to execute and deliver such
other instruments, and take such other action, as either party may reasonably
request in connection with the transactions contemplated by this Assignment and
Acceptance.

         9. This Assignment and Acceptance shall be binding upon and inure to
the benefit of the parties and their respective successors and assigns;
provided, however, that the Assignee shall not assign its rights or obligations
hereunder without the prior written consent of the Assignor and any purported
assignment, absent such consent, shall be void.

         10. This Assignment and Acceptance may be executed by facsimile
signatures with the same force and effect as if manually signed and may be
executed in one or more counterparts, each of which shall be deemed an original,
but all of which together shall constitute one and the same instrument. This
Assignment and Acceptance shall be governed by and construed in accordance with
the laws of the state specified in the Section of the Agreement entitled
"Governing Law."

         11. The effectiveness of the assignment described herein is subject to:

         (a) if such consent is required by the Agreement, receipt by the
Assignor and the Assignee of the consent of the Administrative Agent, the L/C
Issuer and the Swing Line Lender and/or the Borrower to the assignment described
herein. By delivering a duly executed and delivered copy of this Assignment and
Acceptance to the Administrative Agent, the Assignor and the Assignee hereby
request any such required consent and request that the Administrative Agent
register the Assignee as a Lender under the Agreement effective as of the
Effective Date; and

         (b) receipt by the Administrative Agent of (or other arrangements
acceptable to the Administrative Agent with respect to) any applicable
assignment fee referred to in Section 10.07(b) of the Agreement and any tax
forms required by Section 10.15 of the Agreement.

                                 Exhibit F - 3
<PAGE>   109

         By signing below, the Administrative Agent agrees to register the
Assignee as a Lender under the Agreement, effective as of the Effective Date
with respect to the Assigned Interest, and will adjust the registered Pro Rata
Share of the Assignor under the Agreement to reflect the assignment of the
Assigned Interest.

         12. Attached hereto as Schedule 2 is all contact, address, account and
other administrative information relating to the Assignee.

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

                                    ASSIGNOR:

                                    [NAME OF ASSIGNOR]

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

                                    ASSIGNEE:

                                    [NAME OF ASSIGNEE]

[ ]  Tax forms required by
     Section 10.15 of the Agreement
     included

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

(Signatures continue)

                                 Exhibit F - 4
<PAGE>   110

In accordance with and subject to Section 10.07 of the Credit Agreement, the
undersigned consent to the foregoing assignment as of the Effective Date:

ELCOR CORPORATION

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

BANK OF AMERICA, N.A.,
as Administrative Agent, L/C Issuer and
Swing Line Lender

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

                                 Exhibit F - 5
<PAGE>   111

                                         SCHEDULE 1 TO ASSIGNMENT AND ACCEPTANCE

                              THE ASSIGNED INTEREST

EFFECTIVE DATE:
                ------------------------

<TABLE>
<CAPTION>
                                          TYPE AND AMOUNT OF OUTSTANDING
        ASSIGNED COMMITMENT                     OBLIGATIONS ASSIGNED                ASSIGNED PRO RATA SHARE
        -------------------               ------------------------------            -----------------------
<S>                                       <C>                                       <C>
         $                                 [type] $                                                      %
          ----------------                         -------------------               --------------------
</TABLE>

                                 Schedule 1 - 1
<PAGE>   112

                                         SCHEDULE 2 TO ASSIGNMENT AND ACCEPTANCE

                             ADMINISTRATIVE DETAILS

   (Assignee to list names of credit contacts, addresses, phone and facsimile
    numbers, electronic mail addresses and account and payment information)<PAGE>   1
                                                                     EXHIBIT 4.1

                                                                           FINAL

================================================================================
                                CREDIT AGREEMENT

                          DATED AS OF NOVEMBER 10, 2000

                                      AMONG

                       CENTEX CONSTRUCTION PRODUCTS, INC.,
                               AS PARENT BORROWER,

                          REPUBLIC HOLDING CORPORATION,
                             AS SUBSIDIARY BORROWER,

                                  THE LENDERS,

                              BANK ONE, TEXAS, NA,
                            AS ADMINISTRATIVE AGENT,

                             BANK OF AMERICA, N.A.,
                              AS SYNDICATION AGENT,

                         PNC BANK, NATIONAL ASSOCIATION,
                             AS DOCUMENTATION AGENT,

                                  BANK ONE, NA,
                                  AS LC ISSUER,

                                       AND

                         BANC ONE CAPITAL MARKETS, INC.,
                     AS LEAD ARRANGER AND SOLE BOOK MANAGER

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

<PAGE>   2

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>
                                                                                                               Page
<S>                                                                                                            <C>
ARTICLE I - DEFINITIONS...........................................................................................1

ARTICLE II - THE CREDITS.........................................................................................17
         2.1.     Commitment.....................................................................................17
         2.2.     Required Payments; Termination.................................................................18
         2.3.     Ratable Loans..................................................................................18
         2.4.     Types of Advances..............................................................................18
         2.5.     Commitment Fee; Reductions in Aggregate Commitment.............................................18
         2.6.     Minimum Amount of Each Advance.................................................................18
         2.7.     Optional Principal Payments....................................................................18
         2.8.     Method of Selecting Types and Interest Periods for New Advances................................19
         2.9.     Conversion and Continuation of Outstanding Advances............................................19
         2.10.    Changes in Interest Rate, etc..................................................................20
         2.11.    Rates Applicable After Default.................................................................20
         2.12.    Method of Payment..............................................................................21
         2.13.    Noteless Agreement; Evidence of Indebtedness...................................................21
         2.14.    Telephonic Notices.............................................................................22
         2.15.    Interest Payment Dates; Interest and Fee Basis.................................................22
         2.16.    Notification of Advances, Interest Rates, Prepayments and Commitment Reductions................22
         2.17.    Lending Installations..........................................................................23
         2.18.    Non-Receipt of Funds by the Administrative Agent...............................................23
         2.19.    Facility LCs...................................................................................23
                  2.19.1.      Issuance..........................................................................23
                  2.19.2.      Participations....................................................................24
                  2.19.3.      Notice............................................................................24
                  2.19.4.      LC Fees...........................................................................24
                  2.19.5.      Administration; Reimbursement by Lenders..........................................25
                  2.19.6.      Reimbursement by Parent Borrower..................................................25
                  2.19.7.      Obligations Absolute..............................................................26
                  2.19.8.      Actions of LC Issuer..............................................................26
                  2.19.9.      Indemnification...................................................................27
                  2.19.10.     Lenders' Indemnification..........................................................27
                  2.19.11.     Facility LC Collateral Account....................................................27
                  2.19.12.     Rights as a Lender................................................................28
         2.20.    Replacement of Lender..........................................................................28
         2.21.    Swing Line Subfacility.........................................................................28
                  2.21.1.      Conditions........................................................................28
                  2.21.2.      Lenders' Funding of Swing Line Advances as Advances Under Revolving
                               Credit Facility...................................................................29
</TABLE>

                                       -i-

<PAGE>   3

<TABLE>
<S>                                                                                                            <C>
         2.22.    Revolving Subfacility..........................................................................30
         2.23.    Prepayments from Sale of Assets................................................................30
         2.24.    Joint and Several Liability of the Borrowers...................................................31
         2.25.    Prepayments from Sales of Capital Stock........................................................33

ARTICLE III - YIELD PROTECTION; TAXES............................................................................33
         3.1.     Yield Protection...............................................................................33
         3.2.     Changes in Capital Adequacy Regulations........................................................34
         3.3.     Availability of Types of Advances..............................................................34
         3.4.     Funding Indemnification........................................................................35
         3.5.     Taxes..........................................................................................35
         3.6.     Lender Statements; Survival of Indemnity.......................................................37

ARTICLE IV - CONDITIONS PRECEDENT................................................................................37
         4.1.     Initial Advance................................................................................37
         4.2.     Each Credit Extension..........................................................................40

ARTICLE V - REPRESENTATIONS AND WARRANTIES.......................................................................41
         5.1.     Existence and Standing.........................................................................41
         5.2.     Authorization and Validity.....................................................................41
         5.3.     No Conflict; Government Consent................................................................41
         5.4.     Financial Statements...........................................................................42
         5.5.     Material Adverse Change........................................................................42
         5.6.     Taxes..........................................................................................42
         5.7.     Litigation and Contingent Obligations..........................................................42
         5.8.     Subsidiaries...................................................................................42
         5.9.     ERISA..........................................................................................43
         5.10.    Accuracy of Information........................................................................43
         5.11.    Regulation U...................................................................................43
         5.12.    Material Agreements............................................................................43
         5.13.    Compliance With Laws...........................................................................43
         5.14.    Ownership of Properties........................................................................43
         5.15.    Plan Assets; Prohibited Transactions...........................................................43
         5.16.    Environmental Matters..........................................................................44
         5.17.    Investment Company Act.........................................................................44
         5.18.    Public Utility Holding Company Act.............................................................44
         5.19.    Subordinated Indebtedness......................................................................44
         5.20.    Post-Retirement Benefits.......................................................................44
         5.21.    Solvency.......................................................................................44
         5.22.    November 2000 Acquisition......................................................................45
         5.23.    Premier Acquisition Agreement..................................................................45
         5.24.    Indenture......................................................................................45

ARTICLE VI - COVENANTS...........................................................................................46
</TABLE>

                                      -ii-

<PAGE>   4

<TABLE>
<S>                                                                                                            <C>
         6.1.     Financial Reporting............................................................................46
         6.2.     Use of Proceeds................................................................................47
         6.3.     Notice of Default..............................................................................47
         6.4.     Conduct of Business............................................................................47
         6.5.     Taxes..........................................................................................48
         6.6.     Insurance......................................................................................48
         6.7.     Compliance with Laws...........................................................................48
         6.8.     Maintenance of Properties......................................................................48
         6.9.     Inspection.....................................................................................48
         6.10.    Dividends......................................................................................48
         6.11.    Indebtedness...................................................................................49
         6.12.    Merger.........................................................................................49
         6.13.    Sale of Assets.................................................................................49
         6.14.    Investments and Acquisitions...................................................................50
         6.15.    Liens..........................................................................................50
         6.16.    Capital Expenditures...........................................................................51
         6.18.    Sale and Leaseback Transactions and other Off-Balance Sheet Liabilities........................51
         6.19.    Contingent Obligations.........................................................................51
         6.20.    Letters of Credit..............................................................................52
         6.21.    Financial Contracts............................................................................52
         6.22.    Financial Covenants............................................................................52
                  6.22.1.      Interest Coverage Ratio...........................................................52
                  6.22.2.      Leverage Ratio....................................................................52
                  6.22.3.      Minimum Tangible Net Worth........................................................52
         6.23.    Lines of Business..............................................................................52
         6.24.    Prepayment of Debt.............................................................................52
         6.25.    Future Subsidiaries............................................................................52
         6.26.    Prohibition on Granting Negative Pledges.......................................................53
         6.27.    Prohibition on Granting Restrictions on Distributions..........................................53
         6.28.    Prohibition on Synthetic Leases................................................................53
         6.29.    Amendments to Indebtedness.....................................................................53
         6.30.    Joinder of Subsidiary Borrower.................................................................53
         6.31.    Target Senior Subordinated Notes...............................................................54

ARTICLE VII - DEFAULTS...........................................................................................54

ARTICLE VIII - ACCELERATION, WAIVERS, AMENDMENTS AND REMEDIES....................................................56
         8.1.     Acceleration; Facility LC Collateral Account...................................................56

ARTICLE IX - GENERAL PROVISIONS..................................................................................59
         9.1.     Survival of Representations....................................................................59
         9.2.     Governmental Regulation........................................................................59
         9.3.     Headings.......................................................................................59
         9.4.     ENTIRE AGREEMENT...............................................................................59
         9.5.     Several Obligations; Benefits of this Agreement................................................59
</TABLE>

                                      -iii-

<PAGE>   5

<TABLE>
<S>                                                                                                            <C>
         9.6.     Expenses; Indemnification......................................................................59
         9.7.     Numbers of Documents...........................................................................60
         9.8.     Accounting.....................................................................................60
         9.9.     Severability of Provisions.....................................................................61
         9.10.    Nonliability of Lenders........................................................................61
         9.11.    Confidentiality................................................................................61
         9.12.    Nonreliance....................................................................................61
         9.14.    Maximum Interest Rate..........................................................................61
         9.15.    Non-Application of Chapter 346 of Texas Finance Code...........................................62
         9.16.    Survival of Prior Agreements...................................................................62

ARTICLE X - THE ADMINISTRATIVE AGENT.............................................................................62
         10.1.    Appointment; Nature of Relationship............................................................62
         10.2.    Powers.........................................................................................63
         10.3.    General Immunity...............................................................................63
         10.4.    No Responsibility for Credit Extensions, Recitals, etc.........................................63
         10.5.    Action on Instructions of Lenders..............................................................63
         10.6.    Employment of Administrative Agents and Counsel................................................64
         10.7.    Reliance on Documents; Counsel.................................................................64
         10.8.    Administrative Agent's Reimbursement and Indemnification.......................................64
         10.9.    Notice of Default..............................................................................65
         10.10.   Rights as a Lender.............................................................................65
         10.11.   Lender Credit Decision.........................................................................65
         10.12.   Successor Administrative Agent.................................................................65
         10.13.   Administrative Agent and Arranger Fees.........................................................66
         10.14.   Delegation to Affiliates.......................................................................66
         10.15.   Co-Agents, Documentation Agent, Syndication Agent, etc.........................................66

ARTICLE XI - SETOFF; RATABLE PAYMENTS............................................................................67
         11.1.    Setoff.........................................................................................67
         11.2.    Ratable Payments...............................................................................67

ARTICLE XII - BENEFIT OF AGREEMENT; ASSIGNMENTS; PARTICIPATIONS..................................................67
         12.1.    Successors and Assigns.........................................................................67
         12.2.    Participations.................................................................................68
                  12.2.1.      Permitted Participants; Effect....................................................68
                  12.2.2.      Voting Rights.....................................................................68
                  12.2.3.      Benefit of Setoff.................................................................68
         12.3.    Assignments....................................................................................69
                  12.3.1.      Permitted Assignments.............................................................69
                  12.3.2.      Effect; Effective Date............................................................69
         12.4.    Dissemination of Information...................................................................70
         12.5.    Tax Treatment..................................................................................70
</TABLE>

                                      -iv-

<PAGE>   6

<TABLE>
<S>                                                                                                            <C>
ARTICLE XIII - NOTICES...........................................................................................70
         13.1.    Notices........................................................................................70
         13.2.    Change of Address..............................................................................70

ARTICLE XIV - COUNTERPARTS.......................................................................................71

ARTICLE XV - CHOICE OF LAW; CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL........................................71
         15.1.    CHOICE OF LAW..................................................................................71
         15.2.    CONSENT TO JURISDICTION........................................................................71
         15.3.    WAIVER OF JURY TRIAL...........................................................................71
</TABLE>

                                       -v-

<PAGE>   7

PRICING SCHEDULE

EXHIBITS:

A - FORM OF OPINION

B - COMPLIANCE CERTIFICATE

C - ASSIGNMENT AGREEMENT

D - LOAN/CREDIT RELATED MONEY TRANSFER INSTRUCTION

E - NOTE

SCHEDULES:

1 - SUBSIDIARIES AND OTHER INVESTMENTS

2 - INDEBTEDNESS AND LIENS

3 - EXISTING FACILITY LCS

4 - CORPORATE STRUCTURE

                                      -vi-

<PAGE>   8

                                CREDIT AGREEMENT

         This Agreement, dated as of November 10, 2000, is among Centex
Construction Products, Inc., a Delaware corporation, Republic Holding
Corporation, a Nevada corporation, the Lenders, Bank of America, N.A., a
national banking association, as Syndication Agent, PNC Bank, National
Association, a national banking association, as Documentation Agent, Bank One,
NA, as LC Issuer, and Bank One, Texas, NA, a national banking association,
having its principal office in Dallas, Texas, as Administrative Agent. The
parties hereto agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

         As used in this Agreement:

         "Acquisition" means any transaction, or any series of related
transactions, consummated on or after the date of this Agreement, by which the
Parent Borrower or any of its Subsidiaries (i) acquires any going business or
all or substantially all of the assets of any firm, corporation or limited
liability company, or division thereof, whether through purchase of assets,
merger or otherwise or (ii) directly or indirectly acquires (in one transaction
or as the most recent transaction in a series of transactions) at least a
majority (in number of votes) of the securities of a corporation which have
ordinary voting power for the election of directors (other than securities
having such power only by reason of the happening of a contingency) or a
majority (by percentage or voting power) of the outstanding ownership interests
of a partnership or limited liability company, including without limitation, the
November 2000 Acquisition.

         "Advance" means (a) a borrowing hereunder, (i) made by the Lenders on
the same Borrowing Date, or (ii) converted or continued by the Lenders on the
same date of conversion or continuation, consisting, in either case, of the
aggregate amount of the several Loans of the same Type and, in the case of
Eurodollar Loans, for the same Interest Period, (b) a Swing Line Advance, and
(c) a payment under a Facility LC.

         "Administrative Agent" means Bank One in its capacity as contractual
representative of the Lenders pursuant to Article X, and not in its individual
capacity as a Lender, and any successor Administrative Agent appointed pursuant
to Article X.

         "Affiliate" of any Person means any other Person directly or indirectly
controlling, controlled by or under common control with such Person. A Person
shall be deemed to control another Person if the controlling Person owns 10% or
more of any class of voting securities (or other ownership interests) of the
controlled Person or possesses, directly or indirectly, the power to direct or
cause the direction of the management or policies of the controlled Person,
whether through ownership of stock, by contract or otherwise.

<PAGE>   9

         "Agents" means, collectively, the Administrative Agent, the Syndication
Agent and the Documentation Agent.

         "Aggregate Commitment" means the aggregate of the Commitments of all
the Lenders, as reduced from time to time pursuant to the terms hereof.

         "Aggregate Outstanding Credit Exposure" means, at any time, the
aggregate of the Outstanding Credit Exposure of all the Lenders.

         "Agreement" means this credit agreement, as it may be amended, restated
or modified and in effect from time to time.

         "Agreement Accounting Principles" means generally accepted accounting
principles as in effect from time to time, applied in a manner consistent with
that used in preparing the financial statements referred to in Section 5.4.

         "Alternate Base Rate" means, for any day, a rate of interest per annum
equal to the higher of (i) the Prime Rate for such day and (ii) the sum of the
Federal Funds Effective Rate for such day plus 1/2% per annum.

         "Applicable Fee Rate" means, at any time, the percentage rate per annum
at which Commitment Fees are accruing on the unused portion of the Aggregate
Commitment at such time as set forth in the Pricing Schedule.

         "Applicable Margin" means, with respect to Advances of any Type at any
time, the percentage rate per annum which is applicable at such time with
respect to Advances of such Type as set forth in the Pricing Schedule.

         "Arranger" means Banc One Capital Markets, Inc., a Delaware
corporation, and its successors, in its capacity as Lead Arranger and Sole Book
Manager.

         "Article" means an article of this Agreement unless another document is
specifically referenced.

         "Authorized Officer" means any of the President, Chief Executive
Officer, Executive Vice President, Chief Financial Officer, Senior Vice
President or Assistant Treasurer of the Parent Borrower, acting singly.

         "Available Aggregate Commitment" means, at any time, the Aggregate
Commitment then in effect minus the Aggregate Outstanding Credit Exposure at
such time.

         "Bank One" means Bank One, Texas, NA, a national banking association
having its principal office in Dallas, Texas, in its individual capacity, and
its successors.

                                       -2-

<PAGE>   10

         "Borrowers" means Parent Borrower and Subsidiary Borrower.

         "Borrowing Date" means a date on which an Advance is made hereunder.

         "Borrowing Notice" is defined in Section 2.8.

         "Business Day" means (i) with respect to any borrowing, payment or rate
selection of Eurodollar Advances, a day (other than a Saturday or Sunday) on
which banks generally are open in Dallas and New York for the conduct of
substantially all of their commercial lending activities, interbank wire
transfers can be made on the Fedwire system and dealings in United States
dollars are carried on in the London interbank market and (ii) for all other
purposes, a day (other than a Saturday or Sunday) on which banks generally are
open in Dallas for the conduct of substantially all of their commercial lending
activities and interbank wire transfers can be made on the Fedwire system.

         "Capital Expenditures" means, without duplication, any expenditures for
any purchase or other acquisition of any asset which would be classified as a
fixed or capital asset on a consolidated balance sheet of the Parent Borrower
and its Subsidiaries prepared in accordance with Agreement Accounting Principles
excluding (i) the cost of assets acquired with Capitalized Lease Obligations,
(ii) expenditures of insurance proceeds to rebuild or replace any asset after a
casualty loss, (iii) leasehold improvement expenditures for which the Parent
Borrower or a Subsidiary is reimbursed promptly by the lessor, and (iv) any
Permitted Acquisition.

         "Capitalized Lease" of a Person means any lease of Property by such
Person as lessee which would be capitalized on a balance sheet of such Person
prepared in accordance with Agreement Accounting Principles.

         "Capitalized Lease Obligations" of a Person means the amount of the
obligations of such Person under Capitalized Leases which would be shown as a
liability on a balance sheet of such Person prepared in accordance with
Agreement Accounting Principles.

         "Cash Equivalent Investments" means (i) short-term obligations of, or
fully guaranteed by, the United States of America, (ii) commercial paper rated
A-2 or better by S&P or P-2 or better by Moody's, (iii) demand deposit accounts
maintained in the ordinary course of business, and (iv) certificates of deposit
issued by and time deposits with commercial banks (whether domestic or foreign)
having capital and surplus in excess of $100,000,000; provided in each case that
the same provides for payment of both principal and interest (and not principal
alone or interest alone) and is not subject to any contingency regarding the
payment of principal or interest.

         "Change in Control" means (i) the acquisition by any Person, or two or
more Persons acting in concert, of beneficial ownership (within the meaning of
Rule 13d-3 of the Securities and Exchange Commission under the Securities
Exchange Act of 1934) of 50% or more of the outstanding shares of voting stock
of the Parent Borrower; or (ii) Centex Corporation shall cease to own, free and
clear

                                       -3-

<PAGE>   11

of all Liens or other encumbrances, greater than 50% of the outstanding shares
of voting stock of the Parent Borrower on a fully diluted basis.

         "Code" means the Internal Revenue Code of 1986, as amended, reformed or
otherwise modified from time to time.

         "Collateral Shortfall Amount" is defined in Section 8.1.

         "Commitment" means, for each Lender, the obligation of such Lender to
make Loans to, and participate in Facility LCs issued upon the application of,
the Borrowers in an aggregate amount not exceeding the amount set forth opposite
its signature below or as set forth in any Notice of Assignment relating to any
assignment that has become effective pursuant to Section 12.3.2, as such amount
may be modified from time to time pursuant to the terms hereof.

         "Consolidated Capital Expenditures" means, with reference to any
period, the Capital Expenditures of the Parent Borrower and its Subsidiaries
calculated on a consolidated basis for such period.

         "Consolidated EBIT" means Consolidated EBITDA minus depreciation and
amortization, all calculated for the Parent Borrower and its Subsidiaries on a
consolidated basis.

         "Consolidated EBITDA" means Consolidated Net Income plus, to the extent
deducted from revenues in determining Consolidated Net Income, (i) Consolidated
Interest Expense, (ii) expense for taxes paid or accrued, (iii) depreciation,
(iv) amortization and (v) extraordinary losses incurred other than in the
ordinary course of business, minus, to the extent included in Consolidated Net
Income, extraordinary gains realized other than in the ordinary course of
business, all calculated for the Parent Borrower and its Subsidiaries on a
consolidated basis. Notwithstanding anything herein to the contrary, but without
duplication, Consolidated EBITDA shall be inclusive of either (a) in the case of
an Acquisition of equity interests in a Person, the EBITDA (calculated on a
basis consistent with this definition of Consolidated EBITDA) of such Person
before it became a Subsidiary of the Parent Borrower or (b) in the case of an
Acquisition of assets, or any other acquisition of assets if the Administrative
Agent so agrees, the EBITDA associated with such acquired assets before such
acquisition by the Parent Borrower or any Subsidiary but exclusive of either (1)
in the case of a disposition of equity interests in a Person, the EBITDA
(calculated on the basis consistent with this definition of Consolidated EBITDA)
of such Person after it is directly or indirectly disposed of by the Parent
Borrower or (2) in the case of a disposition of assets, the EBITDA associated
with such assets after such assets are disposed of by the Parent Borrower or any
Subsidiary, all of which amounts shall be based upon audited financial
statements.

         "Consolidated Funded Indebtedness" means at any time the aggregate
dollar amount of Consolidated Indebtedness which has actually been funded and is
outstanding at such time, whether or not such amount is due or payable at such
time.

                                       -4-

<PAGE>   12

         "Consolidated Indebtedness" means at any time the Indebtedness of the
Parent Borrower and its Subsidiaries calculated on a consolidated basis as of
such time.

         "Consolidated Interest Expense" means, with reference to any period,
the interest expense and preferred stock dividends of the Parent Borrower and
its Subsidiaries calculated on a consolidated basis for such period.

         "Consolidated Net Income" means, with reference to any period, the net
income (or loss) of the Parent Borrower and its Subsidiaries calculated on a
consolidated basis for such period.

         "Consolidated Net Worth" means at any time the consolidated
stockholders' equity of the Parent Borrower and its Subsidiaries calculated on a
consolidated basis as of such time.

         "Consolidated Tangible Net Worth" means at any time the Consolidated
Net Worth, minus any intangible assets, including, without limitation, patents,
patent rights, trademarks, trade names, franchises, copyrights, goodwill, and
other similar intangible assets of the Parent Borrower and its Subsidiaries
calculated on a consolidated basis as of such time.

         "Contingent Obligation" of a Person means any agreement, undertaking or
arrangement by which such Person assumes, guarantees, endorses, contingently
agrees to purchase or provide funds for the payment of, or otherwise becomes or
is contingently liable upon, the obligation or liability of any other Person, or
agrees to maintain the net worth or working capital or other financial condition
of any other Person, or otherwise assures any creditor of such other Person
against loss, including, without limitation, any comfort letter, operating
agreement, take-or-pay contract or the obligations of any such Person as general
partner of a partnership with respect to the liabilities of the partnership.

         "Conversion/Continuation Notice" is defined in Section 2.9.

         "Controlled Group" means all members of a controlled group of
corporations or other business entities and all trades or businesses (whether or
not incorporated) under common control which, together with the Parent Borrower
or any of its Subsidiaries, are treated as a single employer under Section 414
of the Code.

         "Credit Extension" means the making of an Advance or the issuance of a
Facility LC hereunder.

         "Credit Extension Date" means the Borrowing Date for an Advance or the
issuance date of a Facility LC.

         "Default" means an event described in Article VII.

         "Documentation Agent" means PNC Bank, National Association in its
capacity as documentation agent, and not in its individual capacity as a Lender.

                                       -5-

<PAGE>   13

         "Environmental Laws" means any and all federal, state, local and
foreign statutes, laws, judicial decisions, regulations, ordinances, rules,
judgments, orders, decrees, plans, injunctions, permits, concessions, grants,
franchises, licenses, agreements and other governmental restrictions relating to
(i) the protection of the environment, (ii) the effect of the environment on
human health, (iii) emissions, discharges or releases of pollutants,
contaminants, hazardous substances or wastes into surface water, ground water or
land, or (iv) the manufacture, processing, distribution, use, treatment,
storage, disposal, transport or handling of pollutants, contaminants, hazardous
substances or wastes or the clean-up or other remediation thereof.

         "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended from time to time, and any rule or regulation issued thereunder.

         "Eurodollar Advance" means an Advance which, except as otherwise
provided in Section 2.11, bears interest at the applicable Eurodollar Rate.

         "Eurodollar Base Rate" means, with respect to a Eurodollar Advance for
the relevant Interest Period, the applicable British Bankers' Association
Interest Settlement Rate for deposits in U.S. dollars appearing on Reuters
Screen FRBD as of 11:00 a.m. (London time) two Business Days prior to the first
day of such Interest Period, and having a maturity equal to such Interest
Period, provided that, (i) if Reuters Screen FRBD is not available to the
Administrative Agent for any reason, the applicable Eurodollar Base Rate for the
relevant Interest Period shall instead be the applicable British Bankers'
Association Interest Settlement Rate for deposits in U.S. dollars as reported by
any other generally recognized financial information service as of 11:00 a.m.
(London time) two Business Days prior to the first day of such Interest Period,
and having a maturity equal to such Interest Period, and (ii) if no such British
Bankers' Association Interest Settlement Rate is available to the Administrative
Agent, the applicable Eurodollar Base Rate for the relevant Interest Period
shall instead be the rate determined by the Administrative Agent to be the rate
at which Bank One or one of its Affiliate banks offers to place deposits in U.S.
dollars with first-class banks in the London interbank market at approximately
11:00 a.m. (London time) two Business Days prior to the first day of such
Interest Period, in the approximate amount of Bank One's relevant Eurodollar
Loan and having a maturity equal to such Interest Period.

         "Eurodollar Loan" means a Loan which, except as otherwise provided in
Section 2.11, bears interest at the applicable Eurodollar Rate.

         "Eurodollar Rate" means, with respect to a Eurodollar Advance for the
relevant Interest Period, the sum of (i) the quotient of (a) the Eurodollar Base
Rate applicable to such Interest Period, divided by (b) one minus the Reserve
Requirement (expressed as a decimal) applicable to such Interest Period, plus
(ii) the Applicable Margin.

         "Excluded Taxes" means, in the case of each Lender or applicable
Lending Installation and the Administrative Agent, taxes imposed on its overall
net income, and franchise taxes imposed on

                                       -6-

<PAGE>   14

it, by (i) the jurisdiction under the laws of which such Lender or the
Administrative Agent is incorporated or organized or (ii) the jurisdiction in
which the Administrative Agent's or such Lender's principal executive office or
such Lender's applicable Lending Installation is located.

         "Exhibit" refers to an exhibit to this Agreement, unless another
document is specifically referenced.

         "Existing Facility LCs" is defined in Section 2.19.1.

         "Facility LC" is defined in Section 2.19.1.

         "Facility LC Application" is defined in Section 2.19.3.

         "Facility LC Collateral Account" is defined in Section 2.19.11.

         "Facility Termination Date" means November 10, 2003, or any earlier
date on which the Aggregate Commitment is reduced to zero or otherwise
terminated pursuant to the terms hereof.

         "Federal Funds Effective Rate" means, for any day, an interest rate per
annum equal to the weighted average of the rates on overnight Federal funds
transactions with members of the Federal Reserve System arranged by Federal
funds brokers on such day, as published for such day (or, if such day is not a
Business Day, for the immediately preceding 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 at approximately 10:00 a.m. (Dallas
time) on such day on such transactions received by the Administrative Agent from
three Federal funds brokers of recognized standing selected by the
Administrative Agent in its sole discretion.

         "Financial Contract" of a Person means (i) any exchange-traded or
over-the-counter futures, forward, swap or option contract or other financial
instrument with similar characteristics, or (ii) any Rate Management
Transaction.

         "Floating Rate" means, for any day, a rate per annum equal to (i) the
Alternate Base Rate for such day plus (ii) the Applicable Margin, in each case
changing when and as the Alternate Base Rate changes.

         "Floating Rate Advance" means an Advance which, except as otherwise
provided in Section 2.11, bears interest at the Floating Rate.

         "Floating Rate Loan" means a Loan which, except as otherwise provided
in Section 2.11, bears interest at the Floating Rate.

         "Guarantors" means collectively, all of the Significant Subsidiaries of
the Parent Borrower and their respective successors and assigns.

                                       -7-

<PAGE>   15

         "Guaranty" means that certain Guaranty dated as of the date hereof
executed by the Guarantors in favor of the Administrative Agent, for the ratable
benefit of the Lenders, as it may be amended, restated, supplemented or modified
and in effect from time to time.

         "Indebtedness" of a Person means, without duplication, such Person's
(i) obligations for borrowed money, (ii) obligations representing the deferred
purchase price of Property or services (other than accounts payable arising in
the ordinary course of such Person's business payable on terms customary in the
trade), (iii) obligations, whether or not assumed, secured by Liens on or
payable out of the proceeds or production from Property now or hereafter owned
or acquired by such Person, (iv) obligations which are evidenced by notes,
acceptances, or other instruments, (v) obligations to purchase securities or
other Property arising out of or in connection with the sale of the same or
substantially similar securities or Property, (vi) Capitalized Lease
Obligations, (vii) Net Mark-to-Market Exposure under Rate Management
Transactions and other Financial Contracts, (viii) Contingent Obligations, (ix)
Letters of Credit, (x) Sale and Leaseback Transactions, (xi) Off-Balance Sheet
Liabilities, and (xii) any other obligation for borrowed money or other
financial accommodation which in accordance with Agreement Accounting Principles
would be shown as a liability on the consolidated balance sheet of such Person.

         "Indenture" is defined in Section 4.1.

         "Interest Period" means, with respect to a Eurodollar Advance, a period
of one, two, three or six months commencing on a Business Day selected by the
Parent Borrower pursuant to this Agreement. Such Interest Period shall end on
the day which corresponds numerically to such date one, two, three or six months
thereafter, provided, however, that if there is no such numerically
corresponding day in such next, second, third or sixth succeeding month, such
Interest Period shall end on the last Business Day of such next, second, third
or sixth succeeding month. If an Interest Period would otherwise end on a day
which is not a Business Day, such Interest Period shall end on the next
succeeding Business Day, provided, however, that if said next succeeding
Business Day falls in a new calendar month, such Interest Period shall end on
the immediately preceding Business Day.

         "Investment" of a Person means any loan, advance (other than
commission, travel and similar advances to officers and employees made in the
ordinary course of business), extension of credit (other than accounts
receivable arising in the ordinary course of business on terms customary in the
trade) or contribution of capital by such Person; stocks, bonds, mutual funds,
partnership interests, notes, debentures or other securities owned by such
Person; any deposit accounts and certificate of deposit owned by such Person;
and structured notes, derivative financial instruments and other similar
instruments or contracts owned by such Person.

         "Joint and Several Obligations" shall mean that portion of the
Obligations consisting of (a) the Loans under the Revolving Subfacility and all
principal, interest and fees in connection with such Loans, (b) all fees
incurred or owed by the Subsidiary Borrower pursuant to the terms of the Loan
Documents, including, without limitation, its portion of the commitment fees,
(c) any indemnification

                                       -8-

<PAGE>   16

obligations of the Subsidiary Borrower under the Loan Documents and (d) any and
all other costs and expenses that the Subsidiary Borrower is liable for pursuant
to the terms of the Loan Documents.

         "LC Fee" is defined in Section 2.19.4.

         "LC Issuer" means Bank One, NA (or any subsidiary or Affiliate of Bank
One, NA designated by Bank One, NA) in its capacity as issuer of Facility LCs
hereunder.

         "LC Obligations" means, at any time, the sum, without duplication, of
(i) the aggregate undrawn stated amount under all Facility LCs outstanding at
such time plus (ii) the aggregate unpaid amount at such time of all
Reimbursement Obligations.

         "LC Payment Date" is defined in Section 2.19.5.

         "Lenders" means the lending institutions listed on the signature pages
of this Agreement and their respective successors and assigns.

         "Lending Installation" means, with respect to a Lender or the
Administrative Agent, the office, branch, subsidiary or Affiliate of such Lender
or the Administrative Agent listed on the signature pages hereof or on a
Schedule or otherwise selected by such Lender or the Administrative Agent
pursuant to Section 2.17.

         "Letter of Credit" of a Person means a letter of credit or similar
instrument which is issued upon the application of such Person or upon which
such Person is an account party or for which such Person is in any way liable.

         "Leverage Ratio" means, as of any date of calculation, the ratio of (i)
Consolidated Funded Indebtedness outstanding on such date to (ii) Consolidated
EBITDA for the Parent Borrower's then most-recently ended four fiscal quarters.

         "Lien" means any lien (statutory or other), mortgage, pledge,
hypothecation, assignment, deposit arrangement, encumbrance or preference, or
priority or other security agreement (including, without limitation, the
interest of a vendor or lessor under any conditional sale, Capitalized Lease or
other title retention agreement).

         "Loan" means, with respect to a Lender, such Lender's loan made
pursuant to Article II (or any conversion or continuation thereof).

         "Loan Documents" means this Agreement, the Facility LC Applications,
any Notes issued pursuant to Section 2.13, the Guaranty and any other related
documents, instruments and agreements now or hereafter executed by either
Borrower or any Guarantor in connection with any of the foregoing.

                                       -9-

<PAGE>   17

         "Material Adverse Effect" means a material adverse effect on (i) the
business, Property, financial condition, or results of operations of the Parent
Borrower and its Subsidiaries taken as a whole, (ii) the ability of the
Borrowers to perform their obligations under the Loan Documents to which either
of them is a party, or (iii) the validity or enforceability of any of the Loan
Documents or the rights or remedies of the Administrative Agent, the LC Issuer
or the Lenders thereunder.

         "Material Indebtedness" is defined in Section 7.5.

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

         "Modify" and "Modification" are defined in Section 2.19.1.

         "Moody's" means Moody's Investors Service, Inc.

         "Multiemployer Plan" means a Plan maintained pursuant to a collective
bargaining agreement or any other arrangement to which the Parent Borrower or
any member of the Controlled Group is a party to which more than one employer is
obligated to make contributions.

         "Net Mark-to-Market Exposure" of a Person means, as of any date of
determination, the excess (if any) of all unrealized losses over all unrealized
profits of such Person arising from Rate Management Transactions. "Unrealized
losses" means the fair market value of the cost to such Person of replacing such
Rate Management Transaction as of the date of determination (assuming the Rate
Management Transaction were to be terminated as of that date), and "unrealized
profits" means the fair market value of the gain to such Person of replacing
such Rate Management Transaction as of the date of determination (assuming such
Rate Management Transaction were to be terminated as of that date).

         "Net Cash Proceeds" means, with respect to any sale, lease, transfer or
disposition of any asset of any Person or issuance of any Indebtedness or equity
of any Person, the aggregate amount of cash received by such Person in
connection with such transaction minus reasonable fees, costs and expenses,
related taxes paid or payable, and repayment of any Indebtedness secured by
assets sold, leased, transferred or disposed of which is required to be repaid
as a result of such transaction.

         "Non-U.S. Lender" is defined in Section 3.5(iv).

                                      -10-

<PAGE>   18

         "Note" is defined in Section 2.13.

         "November 2000 Acquisition" means the purchase by Subsidiary Borrower
of all of the issued and outstanding limited liability interests in the Target
pursuant to the November 2000 Acquisition Agreement.

         "November 2000 Acquisition Agreement " means that certain Securities
Purchase Agreement dated as of November 10, 2000 by and among Republic Group LLC
(formerly known as Republic Group, Incorporated), the Parent Borrower, and the
Subsidiary Borrower.

         "Obligations" means all unpaid principal of and accrued and unpaid
interest on the Loans, all Reimbursement Obligations, all accrued and unpaid
fees and all expenses, reimbursements, indemnities and other obligations of the
Borrowers or either of them to the Lenders or to any Lender or any of their
Affiliates, the Administrative Agent, the LC Issuer or any indemnified party
arising under the Loan Documents.

         "Off-Balance Sheet Liability" of a Person means (i) any repurchase
obligation or liability of such Person with respect to accounts or notes
receivable sold by such Person, (ii) any liability under any Sale and Leaseback
Transaction which is not a Capitalized Lease, (iii) any liability under any
Synthetic Lease entered into by such Person, (iv) any obligation or liability
arising with respect to any sale or transfer of an interest in trade receivables
of the Parent Borrower or any Subsidiary on a limited recourse basis, or (v) any
obligation arising with respect to any other transaction which is the functional
equivalent of or takes the place of borrowing but which does not constitute a
liability on the balance sheets of such Person, but excluding from this clause
(v) Operating Leases.

         "Operating Lease" of a Person means any lease of Property (other than a
Capitalized Lease) by such Person as lessee which has an original term
(including any required renewals and any renewals effective at the option of the
lessor) of one year or more.

         "Operating Lease Obligations" means, as at any date of determination,
the amount obtained by aggregating the present values, determined in the case of
each particular Operating Lease by applying a discount rate (which discount rate
shall equal the discount rate which would be applied under Agreement Accounting
Principles if such Operating Lease were a Capitalized Lease) from the date on
which each fixed lease payment is due under such Operating Lease to such date of
determination, of all fixed lease payments due under all Operating Leases of the
Parent Borrower and its Subsidiaries.

         "Other Taxes" is defined in Section 3.5(ii).

         "Outstanding Credit Exposure" means, as to any Lender at any time, the
sum of (i) the aggregate principal amount of its Loans outstanding at such time,
plus (ii) an amount equal to its Pro Rata Share of the LC Obligations at such
time, plus (iii) an amount equal to its Pro Rata Share of the Swing Line
Advances at such time.

                                      -11-

<PAGE>   19

         "Parent Borrower" means Centex Construction Products, Inc., a Delaware
corporation, and its successors and assigns.

         "Participants" is defined in Section 12.2.1.

         "Payment Date" means the first day of each calendar quarter.

         "PBGC" means the Pension Benefit Guaranty Corporation, or any successor
thereto.

         "Permitted Acquisition" means (a) the November 2000 Acquisition and (b)
any other Acquisition by Parent Borrower or any Subsidiary which meets the
following criteria:

                  (i) the acquisition target is in the construction products or
         building materials industry, and if assets are being acquired, the
         assets are located in the continental United States of America;

                  (ii) the Parent Borrower has completed not less than customary
         due diligence on the acquisition target and provided evidence thereof
         to the Administrative Agent, including without limitation as to
         compliance with all Environmental Laws;

                  (iii) if the proposed Acquisition is of stock or other
         ownership interests, the Acquisition will be structured so that the
         acquisition target becomes a Subsidiary of the Parent Borrower and
         complies with Section 6.25 of this Agreement, if applicable;

                  (iv) the interests being acquired shall not be subject to any
         contingent liabilities, unsatisfied judgments, or any pending or
         threatened action, charge, claim, demand, suit, proceeding, or
         governmental investigation that could reasonably be expected to have a
         Material Adverse Effect;

                  (v) if the total purchase price (as determined in accordance
         with clause (vi) below) to be paid in connection with the proposed
         Acquisition is greater than $15,000,000, the Parent Borrower shall have
         provided to the Administrative Agent and each Lender (a) copies of the
         audited financial statements of the acquisition target for the most
         recent twelve (12) month period prior to the closing of the Acquisition
         and interim financial statements of the acquisition target, each
         containing at a minimum a balance sheet, statement of income, and a
         statement of cash flow, and (b) a pro forma financial projection of the
         Parent Borrower for the twelve (12) month period following the date of
         the consummation of the proposed Acquisition which reflects pro forma
         compliance with the financial covenants contained in Section 6.22 and a
         certificate of an Authorized Officer of the Parent Borrower confirming
         such calculations both before and after giving effect to the
         Acquisition;

                  (vi) the total purchase price (including cash consideration
         paid however classified, assumed indebtedness, noncompete payments and
         consulting payments whether such amounts

                                      -12-

<PAGE>   20

         are paid at closing or over time, and the dollar value of all assets to
         be transferred by the purchaser to the seller in connection with such
         Acquisition) to be paid to acquire the equity interests or assets in
         any single such Acquisition does not exceed an amount equal to fifteen
         percent (15%) of the Consolidated Tangible Net Worth as of the date of
         such Acquisition (which calculation for purposes herein shall not
         include the tangible net worth of the Person being acquired) unless the
         prior written consent of Required Lenders has otherwise been obtained;

                  (vii) when no Default exists or will result therefrom, an
         acquisition other than the Permitted Acquisitions described in clauses
         (v) or (vi) above, subject to compliance with clauses (i), (ii), (iii),
         (iv), and (viii) hereof, for which the total purchase price (as
         determined in accordance with clause (vi) above) given does not exceed
         $15,000,000;

                  (viii) the total aggregate purchase price (as determined in
         accordance with clause (vi) above) paid in connection with all
         Permitted Acquisitions shall not exceed $150,000,000 in the aggregate
         unless the prior written consent of Required Lenders has otherwise been
         obtained; and

                  (ix) the name of the acquisition target and a summary
         description of the terms of the Acquisition shall have been provided to
         the Lenders at least ten (10) Business Days prior to the date that the
         proposed Acquisition is to be consummated.

         "Person" means any natural person, corporation, firm, joint venture,
partnership, limited liability company, association, enterprise, trust or other
entity or organization, or any government or political subdivision or any
agency, department or instrumentality thereof.

         "Plan" means an employee pension benefit plan which is covered by Title
IV of ERISA or subject to the minimum funding standards under Section 412 of the
Code as to which the Parent Borrower or any member of the Controlled Group may
have any liability.

         "Premier Acquisition Agreement" is defined in Section 4.1.

         "Pricing Schedule" means the Schedule attached hereto identified as
such.

         "Prime Rate" means a rate per annum equal to the prime rate of interest
announced from time to time by Bank One or its parent (which is not necessarily
the lowest rate charged to any customer), changing when and as said prime rate
changes.

         "Pro Rata Share" means, with respect to a Lender, a portion equal to a
fraction the numerator of which is such Lender's Commitment and the denominator
of which is the Aggregate Commitment.

         "Property" of a Person means any and all property, whether real,
personal, tangible, intangible, or mixed, of such Person, or other assets owned,
leased or operated by such Person.

                                      -13-

<PAGE>   21

         "Purchasers" is defined in Section 12.3.1.

         "Rate Management Obligations" of a Person means any and all obligations
of such Person, whether absolute or contingent and howsoever and whensoever
created, arising, evidenced or acquired (including all renewals, extensions and
modifications thereof and substitutions therefor), under (i) any and all Rate
Management Transactions, and (ii) any and all cancellations, buy backs,
reversals, terminations or assignments of any Rate Management Transactions.

         "Rate Management Transaction" means any transaction (including an
agreement with respect thereto) now existing or hereafter which is a rate swap,
basis swap, forward rate transaction, commodity swap, commodity option, equity
or equity index swap, equity or equity index option, bond option, interest rate
option, foreign exchange transaction, cap transaction, floor transaction, collar
transaction, forward transaction, currency swap transaction, cross-currency rate
swap transaction, currency option or any other similar transaction (including
any option with respect to any of these transactions) or any combination
thereof, whether linked to one or more interest rates, foreign currencies,
commodity prices, equity prices or other financial measures.

         "Regulation D" means Regulation D of the Board of Governors of the
Federal Reserve System as from time to time in effect and any successor thereto
or other regulation or official interpretation of said Board of Governors
relating to reserve requirements applicable to member banks of the Federal
Reserve System.

         "Regulation U" means Regulation U of the Board of Governors of the
Federal Reserve System as from time to time in effect and any successor or other
regulation or official interpretation of said Board of Governors relating to the
extension of credit by banks for the purpose of purchasing or carrying margin
stocks applicable to member banks of the Federal Reserve System.

         "Reimbursement Obligations" means, at any time, the aggregate of all
obligations of the Parent Borrower then outstanding under Section 2.19 to
reimburse the LC Issuer for amounts paid by the LC Issuer in respect of any one
or more drawings under Facility LCs.

         "Rentals" of a Person means the aggregate fixed amounts payable by such
Person under any Operating Lease.

         "Reportable Event" means a reportable event as defined in Section 4043
of ERISA and the regulations issued under such section, with respect to a Plan,
excluding, however, such events as to which the PBGC has by regulation waived
the requirement of Section 4043(a) of ERISA that it be notified within 30 days
of the occurrence of such event, provided, however, that a failure to meet the
minimum funding standard of Section 412 of the Code and of Section 302 of ERISA
shall be a Reportable Event regardless of the issuance of any such waiver of the
notice requirement in accordance with either Section 4043(a) of ERISA or Section
412(d) of the Code.

         "Reports" is defined in Section 9.6.

                                      -14-

<PAGE>   22

         "Required Lenders" means Lenders in the aggregate having at least 51%
of the Aggregate Commitment or, if the Aggregate Commitment has been terminated,
Lenders in the aggregate holding at least 51% of the Aggregate Outstanding
Credit Exposure.

         "Reserve Requirement" means, with respect to an Interest Period, the
maximum aggregate reserve requirement (including all basic, supplemental,
marginal and other reserves) which is imposed under Regulation D on Eurocurrency
liabilities.

         "Revolving Credit Facility" means the revolving credit facility
described in Section 2.1.

         "Revolving Subfacility" means the subfacility provided to the Borrowers
under the Revolving Credit Facility which is described in Section 2.22.

         "Revolving Subfacility Limit" is defined in Section 2.22.

         "RGI" is defined in Section 4.1.

         "S&P" means Standard and Poor's Ratings Services, a division of The
McGraw Hill Companies, Inc.

         "Sale and Leaseback Transaction" means any sale or other transfer of
Property by any Person with the intent to lease such Property as lessee.

         "Schedule" refers to a specific schedule to this Agreement, unless
another document is specifically referenced.

         "Section" means a numbered section of this Agreement, unless another
document is specifically referenced.

         "Significant Subsidiary" means any Subsidiary which at any time has
total assets with a book or fair market value (determined in accordance with
Agreement Accounting Principles) equal to or greater than ten percent (10%) of
the Consolidated Tangible Net Worth. Significant Subsidiaries shall in any event
at all times be comprised of Subsidiaries which, when aggregated with the total
assets of the Parent Borrower, in the aggregate have total assets with a book or
fair market value (determined in accordance with Agreement Accounting
Principles) equal to or greater than ninety percent (90%) of the total assets of
the Parent Borrower and its Subsidiaries.

         "Single Employer Plan" means a Plan maintained by the Parent Borrower
or any member of the Controlled Group for employees of the Parent Borrower or
any member of the Controlled Group.

         "Subordinated Indebtedness" of a Person means any Indebtedness of such
Person the payment of which is subordinated to payment of the Obligations to the
written satisfaction of the Required Lenders.

                                      -15-

<PAGE>   23

         "Subsidiary" of a Person means (i) any corporation more than 50% of the
outstanding securities having ordinary voting power of which shall at the time
be owned or controlled, directly or indirectly, by such Person or by one or more
of its Subsidiaries or by such Person and one or more of its Subsidiaries, or
(ii) any partnership, limited liability company, association, joint venture or
similar business organization more than 50% of the ownership interests having
ordinary voting power of which shall at the time be so owned or controlled.
Unless otherwise expressly provided, all references herein to a "Subsidiary"
shall mean a Subsidiary of the Parent Borrower.

         "Subsidiary Borrower" means Republic Holding Corporation, a Nevada
corporation, and its successors and assigns.

         "Substantial Portion" means, with respect to the Property of the Parent
Borrower and its Subsidiaries, Property which (i) represents more than 10% of
the consolidated assets of the Parent Borrower and its Subsidiaries as would be
shown in the consolidated financial statements of the Parent Borrower and its
Subsidiaries as at the beginning of the twelve-month period ending with the
month in which such determination is made, or (ii) is responsible for more than
10% of the consolidated net sales or of the Consolidated EBITDA of the Parent
Borrower and its Subsidiaries as reflected in the financial statements referred
to in clause (i) above.

         "Syndication Agent" means Bank of America, N.A., in its capacity as
syndication agent, and not in its individual capacity as a Lender.

         "Synthetic Lease" means a lease (i) that is treated as an operating
lease under Agreement Accounting Principles and (ii) (a) in respect of which the
leased asset is treated as owned by the lessee for purposes of the Code and/or
(b) that is treated as a loan to the lessee for commercial law or insolvency law
purposes.

         "Swing Line Advance" means any Advance under the Swing Line
Subfacility.

         "Swing Line Subfacility" means a subfacility under the Revolving Credit
Facility described in Section 2.21.

         "Target" means collectively, Republic Gypsum Operating LLC, a Delaware
limited liability company, Republic Gypsum Holding LLC, a Delaware limited
liability company, Republic Paperboard Company LLC, a Delaware limited liability
company, and LaPorte Minerals LLC, a Delaware limited liability company, and
their Subsidiaries and successors and assigns.

         "Target Senior Subordinated Notes" means those certain 9.5% Senior
Subordinated Notes in the aggregate principal amount of $100,000,000 executed by
the Republic Group Incorporated and payable to the order of certain Persons
named therein, as assumed by the Subsidiary Borrower pursuant to the
supplemental indenture, dated as of November 10, 2000, by and between UMB Bank
N.A., as Trustee, and the Subsidiary Borrower.

                                      -16-

<PAGE>   24

         "Taxes" means any and all present or future governmental taxes, duties,
levies, imposts, deductions, charges or withholdings, and any and all
liabilities with respect to the foregoing, but excluding Excluded Taxes and
Other Taxes.

         "Transferee" is defined in Section 12.4.

         "Type" means, with respect to any Advance, its nature as a Floating
Rate Advance or a Eurodollar Advance.

         "Unfunded Liabilities" means the amount (if any) by which the present
value of all vested and unvested accrued benefits under all Single Employer
Plans exceeds the fair market value of all such Plan assets allocable to such
benefits, all determined as of the then most recent valuation date for such
Plans using PBGC actuarial assumptions for single employer plan terminations.

         "Unmatured Default" means an event which but for the lapse of time or
the giving of notice, or both, would constitute a Default.

         "Wholly-Owned Subsidiary" of a Person means (i) any Subsidiary all of
the outstanding voting securities of which shall at the time be owned or
controlled, directly or indirectly, by such Person or one or more Wholly-Owned
Subsidiaries of such Person, or by such Person and one or more Wholly-Owned
Subsidiaries of such Person, or (ii) any partnership, limited liability company,
association, joint venture or similar business organization 100% of the
ownership interests having ordinary voting power of which shall at the time be
so owned or controlled.

         The foregoing definitions shall be equally applicable to both the
singular and plural forms of the defined terms.

                                   ARTICLE II

                                   THE CREDITS

         2.1. Commitment. From and including the date of this Agreement and
prior to the Facility Termination Date, each Lender severally agrees, on the
terms and conditions set forth in this Agreement, to (i) make Loans (other than
Swing Line Advances) to the Parent Borrower, (ii) participate in Swing Line
Advances, (iii) participate in Facility LCs issued upon the request of the
Parent Borrower, and (iv) make Loans to the Borrowers under the Revolving
Subfacility, provided that, after giving effect to the making of each such Loan
(including the Swing Line Advances) and the issuance of each such Facility LC,
such Lender's Outstanding Credit Exposure shall not exceed its Commitment.
Subject to the terms of this Agreement, the Parent Borrower may borrow, repay
and reborrow at any time prior to the Facility Termination Date. The Commitments
to extend credit hereunder shall expire on the Facility Termination Date. The LC
Issuer will issue Facility LCs hereunder on the terms and conditions set forth
in Section 2.19. The Administrative Agent will make

                                      -17-

<PAGE>   25

Swing Line Advances hereunder on the terms and conditions set forth in Section
2.21. Loans under the Revolving Subfacility will be made on the terms and
conditions set forth in Section 2.22.

         2.2. Required Payments; Termination. The Aggregate Outstanding Credit
Exposure and all other unpaid Obligations shall be paid in full by the Parent
Borrower or, with respect to the Revolving Subfacility only, the Subsidiary
Borrower, on the Facility Termination Date.

         2.3. Ratable Loans. Each Advance under the Revolving Credit Facility
shall consist of Loans made from the several Lenders ratably according to their
Pro Rata Shares.

         2.4. Types of Advances. The Advances under the Revolving Credit
Facility may be Floating Rate Advances or Eurodollar Advances, or a combination
thereof, selected by the Parent Borrower or, with respect to the Revolving
Subfacility only, the Subsidiary Borrower, in accordance with Sections 2.8 and
2.9.

         2.5. Commitment Fee; Reductions in Aggregate Commitment. The Parent
Borrower agrees to pay to the Administrative Agent for the account of each
Lender according to its Pro Rata Share a commitment fee at a per annum rate
equal to the Applicable Fee Rate on the average daily Available Aggregate
Commitment from the date hereof to and including the Facility Termination Date,
payable on each Payment Date hereafter and on the Facility Termination Date. The
Parent Borrower or, with respect to the Revolving Subfacility only, the
Subsidiary Borrower, may permanently reduce the Aggregate Commitment in whole,
or in part ratably among the Lenders in integral multiples of $5,000,000, upon
at least five Business Days' written notice to the Administrative Agent, which
notice shall specify the amount of any such reduction; provided, however, that
the amount of the Aggregate Commitment may not be reduced below the Aggregate
Outstanding Credit Exposure. All accrued commitment fees shall be payable on the
effective date of any termination of the obligations of the Lenders to make
Credit Extensions hereunder.

         2.6. Minimum Amount of Each Advance. Each Eurodollar Advance shall be
in the minimum amount of $1,000,000 (and in multiples of $100,000 if in excess
thereof), and each Floating Rate Advance shall be in the minimum amount of
$1,000,000 (and in multiples of $100,000 if in excess thereof); provided,
however, that any Floating Rate Advance may be in the amount of the Available
Aggregate Commitment.

         2.7. Optional Principal Payments. The Parent Borrower or, with respect
to the Revolving Subfacility only, the Subsidiary Borrower, may from time to
time pay, without penalty or premium, all outstanding Floating Rate Advances,
or, in a minimum aggregate amount of $1,000,000 or any integral multiple of
$100,000 in excess thereof, any portion of the outstanding Floating Rate
Advances upon two Business Days' prior notice to the Administrative Agent. The
Parent Borrower or, with respect to the Revolving Subfacility only, the
Subsidiary Borrower may from time to time pay, subject to the payment of any
funding indemnification amounts required by Section 3.4 but without penalty or
premium, all outstanding Eurodollar Advances, or, in a minimum aggregate

                                      -18-

<PAGE>   26

amount of $1,000,000 or any integral multiple of $100,000 in excess thereof, any
portion of the outstanding Eurodollar Advances upon three Business Days' prior
notice to the Administrative Agent.

         2.8. Method of Selecting Types and Interest Periods for New Advances.
Except with respect to Swing Line Advances, the Parent Borrower or, with respect
to the Revolving Subfacility only, the Subsidiary Borrower, shall select the
Type of Advance and, in the case of each Eurodollar Advance, the Interest Period
applicable thereto from time to time. The Parent Borrower or, with respect to
the Revolving Subfacility only, the Subsidiary Borrower, shall give the
Administrative Agent irrevocable notice (a "Borrowing Notice") not later than
10:00 a.m. (Dallas time) at least one Business Day before the Borrowing Date of
each Floating Rate Advance and three Business Days before the Borrowing Date for
each Eurodollar Advance, specifying:

                  (i)      the Borrowing Date, which shall be a Business Day, of
                           such Advance,

                  (ii)     the aggregate amount of such Advance,

                  (iii)    the Type of Advance selected, and

                  (iv)     in the case of each Eurodollar Advance, the Interest
                           Period applicable thereto.

Not later than noon (Dallas time) on each Borrowing Date, each Lender shall make
available its Loan or Loans in funds immediately available in Dallas to the
Administrative Agent at its address specified pursuant to Article XIII. The
Administrative Agent will make the funds so received from the Lenders available
to the Parent Borrower or, with respect to the Revolving Subfacility only, the
Subsidiary Borrower, at the Administrative Agent's aforesaid address.
Notwithstanding anything to the contrary contained herein, no Eurodollar
Advances shall be made until the earlier of the following has occurred: (a) the
Administrative Agent has determined in its reasonable discretion that
syndication of the Loans has been completed and (b) ninety (90) days after the
date hereof.

         2.9. Conversion and Continuation of Outstanding Advances. Floating Rate
Advances shall continue as Floating Rate Advances unless and until such Floating
Rate Advances are converted into Eurodollar Advances pursuant to this Section
2.9 or are repaid in accordance with Section 2.7. Each Eurodollar Advance shall
continue as a Eurodollar Advance until the end of the then applicable Interest
Period therefor, at which time such Eurodollar Advance shall be automatically
converted into a Floating Rate Advance unless (x) such Eurodollar Advance is or
was repaid in accordance with Section 2.7 or (y) the Parent Borrower or, with
respect to the Revolving Subfacility only, the Subsidiary Borrower, shall have
given the Administrative Agent a Conversion/Continuation Notice (as defined
below) requesting that, at the end of such Interest Period, such Eurodollar
Advance continue as a Eurodollar Advance for the same or another Interest
Period. Subject to the terms of Section 2.6, the Parent Borrower or, with
respect to the Revolving Subfacility only, the Subsidiary Borrower, may elect
from time to time to convert all or any part of a Floating Rate Advance (other
than Swing Line Advances) into a Eurodollar Advance. The Parent Borrower or,
with respect to the Revolving Subfacility only, the Subsidiary Borrower, shall
give the Administrative Agent irrevocable

                                      -19-

<PAGE>   27

notice (a "Conversion/Continuation Notice") of each conversion of a Floating
Rate Advance into a Eurodollar Advance or continuation of a Eurodollar Advance
not later than 10:00 a.m. (Dallas time) at least three Business Days prior to
the date of the requested conversion or continuation, specifying:

                  (i) the requested date, which shall be a Business Day, of such
         conversion or continuation,

                  (ii) the aggregate amount and Type of the Advance which is to
         be converted or continued, and

                  (iii) the amount of such Advance which is to be converted into
         or continued as a Eurodollar Advance and the duration of the Interest
         Period applicable thereto.

         2.10. Changes in Interest Rate, etc. Each Floating Rate Advance shall
bear interest on the outstanding principal amount thereof, for each day from and
including the date such Advance is made or is automatically converted from a
Eurodollar Advance into a Floating Rate Advance pursuant to Section 2.9, to but
excluding the date it is paid or is converted into a Eurodollar Advance pursuant
to Section 2.9 hereof, at a rate per annum equal to the lesser of (a) the
Maximum Rate, or (b) the Floating Rate for such day. Changes in the rate of
interest on that portion of any Advance maintained as a Floating Rate Advance
will take effect simultaneously with each change in the Alternate Base Rate. If
at any time the Floating Rate shall exceed the Maximum Rate, thereby causing the
interest accruing on an Advance to be limited to the Maximum Rate, then any
subsequent reduction in the Floating Rate for such Advance shall not reduce the
rate of interest on such Advance below the Maximum Rate until the aggregate
amount of interest accrued on such Advance equals the aggregate amount of
interest which would have accrued on such Advance if the Floating Rate had at
all times been in effect. Each Eurodollar Advance shall bear interest on the
outstanding principal amount thereof from and including the first day of the
Interest Period applicable thereto to (but not including) the last day of such
Interest Period at the interest rate determined by the Administrative Agent as
applicable to such Eurodollar Advance based upon the Parent Borrower's or, with
respect to the Revolving Subfacility only, the Subsidiary Borrower's, selections
under Sections 2.8 and 2.9 and otherwise in accordance with the terms hereof. No
Interest Period may end after the Facility Termination Date.

         2.11. Rates Applicable After Default. Notwithstanding anything to the
contrary contained in Section 2.8 or 2.9, during the continuance of a Default or
Unmatured Default the Required Lenders may, at their option, by notice to the
Borrowers, declare that no Advance may be made as, converted into or continued
as a Eurodollar Advance. During the continuance of a Default the Required
Lenders may, at their option, by notice to the Borrowers, declare that (i) each
Eurodollar Advance shall bear interest for the remainder of the applicable
Interest Period at the rate otherwise applicable to such Interest Period (but
calculated as if the highest Applicable Margin was then in effect) plus 2% per
annum, (ii) each Floating Rate Advance shall bear interest at a rate per annum
equal to the Floating Rate in effect from time to time (but calculated as if the
highest Applicable Margin was then in effect) plus 2% per annum and (iii) the LC
Fee shall be calculated as if the highest Applicable

                                      -20-

<PAGE>   28

Margin was then in effect and increased by 2% per annum, provided that, during
the continuance of a Default under Section 7.6 or 7.7, the interest rates set
forth in clauses (i) and (ii) above and the increase in the LC Fee set forth in
clause (iii) above shall be applicable to all Credit Extensions without any
election or action on the part of the Administrative Agent or any Lender,
subject in all events to the limitations of the Maximum Rate.

         2.12. Method of Payment. All payments of the Obligations hereunder
shall be made, without setoff, deduction, or counterclaim, in immediately
available funds to the Administrative Agent at the Administrative Agent's
address specified pursuant to Article XIII, or at any other Lending Installation
of the Administrative Agent specified in writing by the Administrative Agent to
the Borrowers, by noon (local time) on the date when due and shall (except in
the case of Reimbursement Obligations for which the LC Issuer has not been fully
indemnified by the Lenders, or as otherwise specifically required hereunder) be
applied ratably by the Administrative Agent among the Lenders. Each payment
delivered to the Administrative Agent for the account of any Lender shall be
delivered promptly by the Administrative Agent to such Lender in the same type
of funds that the Administrative Agent received at its address specified
pursuant to Article XIII or at any Lending Installation specified in a notice
received by the Administrative Agent from such Lender. The Administrative Agent
is hereby authorized to charge the account of the Parent Borrower and, with
respect to the Revolving Subfacility only, the Subsidiary Borrower, maintained
with Bank One for each payment of principal, interest, Reimbursement Obligations
and fees as it becomes due hereunder. Each reference to the Administrative Agent
in this Section 2.12 shall also be deemed to refer, and shall apply equally, to
the LC Issuer, in the case of payments required to be made by the Parent
Borrower to the LC Issuer pursuant to Section 2.19.6.

         2.13. Noteless Agreement; Evidence of Indebtedness.

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

                  (ii) The Administrative Agent shall also maintain accounts in
         which it will record (a) the amount of each Loan made hereunder, the
         Type thereof and the Interest Period with respect thereto, (b) the
         amount of any principal or interest due and payable or to become due
         and payable from the Borrowers to each Lender hereunder, (c) the
         original stated amount of each Facility LC and the amount of LC
         Obligations outstanding at any time, and (d) the amount of any sum
         received by the Administrative Agent hereunder from the Borrowers and
         each Lender's share thereof.

                  (iii) The entries maintained in the accounts maintained
         pursuant to paragraphs (i) and (ii) above shall be prima facie evidence
         of the existence and amounts of the Obligations therein recorded;
         provided, however, that the failure of the Administrative Agent or any
         Lender to

                                      -21-

<PAGE>   29

         maintain such accounts or any error therein shall not in any manner
         affect the obligation of the Borrowers to repay the Obligations in
         accordance with their terms.

                  (iv) Any Lender may request that its Loans under the Revolving
         Credit Facility be evidenced by a promissory note in substantially the
         form of Exhibit E (a "Note"). In such event, the Parent Borrower and,
         with respect to the Revolving Subfacility only, the Subsidiary
         Borrower, shall prepare, execute and deliver to such Lender a Note
         payable to the order of such Lender in a form supplied by the
         Administrative Agent. Thereafter, the Loans evidenced by such Note and
         interest thereon shall at all times (including after any assignment
         pursuant to Section 12.3) be represented by one or more Notes payable
         to the order of the payee named therein or any assignee pursuant to
         Section 12.3, except to the extent that any such Lender or assignee
         subsequently returns any such Note for cancellation and requests that
         such Loans once again be evidenced as described in clauses (i) and (ii)
         above.

         2.14. Telephonic Notices. Each of the Parent Borrower and, with respect
to the Revolving Subfacility only, the Subsidiary Borrower, hereby authorizes
the Lenders and the Administrative Agent to extend, convert or continue
Advances, effect selections of Types of Advances and to transfer funds based on
telephonic notices made by any person or persons the Administrative Agent or any
Lender in good faith believes to be acting on behalf of the Borrowers, it being
understood that the foregoing authorization is specifically intended to allow
Borrowing Notices and Conversion/Continuation Notices to be given
telephonically. Each Borrower agrees to deliver promptly to the Administrative
Agent a written confirmation, if such confirmation is requested by the
Administrative Agent or any Lender, of each telephonic notice signed by an
Authorized Officer. If the written confirmation differs in any material respect
from the action taken by the Administrative Agent and the Lenders, the records
of the Administrative Agent and the Lenders shall govern absent manifest error.

         2.15. Interest Payment Dates; Interest and Fee Basis. Interest accrued
on each Floating Rate Advance shall be payable on each Payment Date, commencing
with the first such date to occur after the date hereof and at maturity.
Interest accrued on each Eurodollar Advance shall be payable on the last day of
its applicable Interest Period, on any date on which the Eurodollar Advance is
prepaid, whether by acceleration or otherwise, and at maturity. Interest accrued
on each Eurodollar Advance having an Interest Period longer than three months
shall also be payable on the last day of each three-month interval during such
Interest Period. Interest, commitment fees and LC Fees shall be calculated for
actual days elapsed on the basis of a 360-day year. Interest shall be payable
for the day an Advance is made but not for the day of any payment on the amount
paid if payment is received prior to noon (local time) at the place of payment.
If any payment of principal of or interest on an Advance shall become due on a
day which is not a Business Day, such payment shall be made on the next
succeeding Business Day and, in the case of a principal payment, such extension
of time shall be included in computing interest in connection with such payment.

         2.16. Notification of Advances, Interest Rates, Prepayments and
Commitment Reductions. Promptly after receipt thereof, the Administrative Agent
will notify each Lender of the contents of each Aggregate Commitment reduction
notice, Borrowing Notice, Conversion/Continuation Notice, and

                                      -22-

<PAGE>   30

repayment notice received by it hereunder. Promptly after notice from the LC
Issuer, the Administrative Agent will notify each Lender of the contents of each
request for issuance of a Facility LC hereunder. The Administrative Agent will
notify each Lender of the interest rate applicable to each Eurodollar Advance
promptly upon determination of such interest rate and will give each Lender
prompt notice of each change in the Alternate Base Rate.

         2.17. Lending Installations. Each Lender may book its Loans and its
participation in any LC Obligations and the LC Issuer may book the Facility LCs
at any Lending Installation selected by such Lender or the LC Issuer, as the
case may be, and may change its Lending Installation from time to time. All
terms of this Agreement shall apply to any such Lending Installation and the
Loans, Facility LCs, participations in LC Obligations and any Notes issued
hereunder shall be deemed held by each Lender or the LC Issuer, as the case may
be, for the benefit of any such Lending Installation. Each Lender and the LC
Issuer may, by written notice to the Administrative Agent and the Borrowers in
accordance with Article XIII, designate replacement or additional Lending
Installations through which Loans will be made by it or Facility LCs will be
issued by it and for whose account Loan payments or payments with respect to
Facility LCs are to be made.

         2.18. Non-Receipt of Funds by the Administrative Agent. Unless the
Borrowers or a Lender, as the case may be, notifies the Administrative Agent
prior to the date on which it is scheduled to make payment to the Administrative
Agent of (i) in the case of a Lender, the proceeds of a Loan or (ii) in the case
of either Borrower, a payment of principal, interest or fees to the
Administrative Agent for the account of the Lenders, that it does not intend to
make such payment, the Administrative Agent may assume that such payment has
been made. The Administrative Agent may, but shall not be obligated to, make the
amount of such payment available to the intended recipient in reliance upon such
assumption. If such Lender or Borrower, as the case may be, has not in fact made
such payment to the Administrative Agent, the recipient of such payment shall,
on demand by the Administrative Agent, repay to the Administrative Agent the
amount so made available together with interest thereon in respect of each day
during the period commencing on the date such amount was so made available by
the Administrative Agent until the date the Administrative Agent recovers such
amount at a rate per annum equal to (x) in the case of payment by a Lender, the
Federal Funds Effective Rate for such day for the first three days and,
thereafter, the interest rate applicable to the relevant Loan or (y) in the case
of payment by the Borrowers, the interest rate applicable to the relevant Loan.

         2.19. Facility LCs.

                  2.19.1. Issuance. Subject to the terms and conditions of this
         Agreement, the LC Issuer agrees to keep outstanding on and after the
         date hereof the standby letters of credit for the account of the Parent
         Borrower which were issued by the LC Issuer and which are further
         described on Schedule 3 (collectively, the "Existing Facility LCs").
         Each Existing Facility LC shall constitute a Facility LC for all
         purposes of this Agreement. For purposes hereof, the Existing Facility
         LCs are deemed to be issued on the date hereof. Furthermore, the LC
         Issuer hereby agrees, on the terms and conditions set forth in this
         Agreement, to issue standby and commercial letters of credit (each, a
         "Facility LC") and to renew, extend, increase, decrease or otherwise
         modify each Facility

                                      -23-

<PAGE>   31

         LC ("Modify," and each such action a "Modification"), from time to time
         from and including the date of this Agreement and prior to the Facility
         Termination Date upon the request of the Parent Borrower; provided that
         immediately after each such Facility LC is issued or Modified, (i) the
         aggregate amount of the outstanding LC Obligations shall not exceed
         $15,000,000 and (ii) the Aggregate Outstanding Credit Exposure shall
         not exceed the Aggregate Commitment. No Facility LC shall have an
         expiry date later than the earlier of (x) the fifth Business Day prior
         to the Facility Termination Date and (y) one year after its issuance.

                  2.19.2. Participations. Upon the issuance or Modification by
         the LC Issuer of a Facility LC in accordance with this Section 2.19,
         the LC Issuer shall be deemed, without further action by any party
         hereto, to have unconditionally and irrevocably sold to each Lender,
         and each Lender shall be deemed, without further action by any party
         hereto, to have unconditionally and irrevocably purchased from the LC
         Issuer, a participation in such Facility LC (and each Modification
         thereof) and the related LC Obligations in proportion to its Pro Rata
         Share.

                  2.19.3. Notice. Subject to Section 2.19.1, the Parent Borrower
         shall give the LC Issuer notice prior to 10:00 a.m. (Dallas time) at
         least five Business Days prior to the proposed date of issuance or
         Modification of each Facility LC, specifying the beneficiary, the
         proposed date of issuance (or Modification) and the expiry date of such
         Facility LC, and describing the proposed terms of such Facility LC and
         the nature of the transactions proposed to be supported thereby. Upon
         receipt of such notice, the LC Issuer shall promptly notify the
         Administrative Agent, and the Administrative Agent shall promptly
         notify each Lender, of the contents thereof and of the amount of such
         Lender's participation in such proposed Facility LC. The issuance or
         Modification by the LC Issuer of any Facility LC shall, in addition to
         the conditions precedent set forth in Article IV (the satisfaction of
         which the LC Issuer shall have no duty to ascertain), be subject to the
         conditions precedent that such Facility LC shall be reasonably
         satisfactory to the LC Issuer and that the Parent Borrower shall have
         executed and delivered such application agreement and/or such other
         instruments and agreements relating to such Facility LC as the LC
         Issuer shall have reasonably requested (each, a "Facility LC
         Application"). In the event of any conflict between the terms of this
         Agreement and the terms of any Facility LC Application, the terms of
         this Agreement shall control.

                  2.19.4. LC Fees. The Parent Borrower shall pay to the
         Administrative Agent, for the account of the Lenders ratably in
         accordance with their respective Pro Rata Shares, (i) with respect to
         each standby Facility LC, a letter of credit fee at a per annum rate
         equal to the Applicable Margin for Eurodollar Loans in effect from time
         to time on the average daily undrawn stated amount under such standby
         Facility LC, such fee to be payable in arrears on each Payment Date,
         and (ii) with respect to each commercial Facility LC, a one-time letter
         of credit fee in an amount equal to 0.125% of the initial stated amount
         (or, with respect to a Modification of any such commercial Facility LC
         which increases the stated amount thereof, such increase in the stated
         amount) thereof, such fee to be payable on the date of such issuance or
         increase (each such fee described in this sentence an "LC Fee"). The
         Parent Borrower shall also pay to the LC Issuer for its own account (x)
         at the time of issuance of each Facility LC, a fronting fee in an
         amount to be

                                      -24-

<PAGE>   32

         agreed upon between the LC Issuer and the Parent Borrower, and (y)
         documentary and processing charges in connection with the issuance or
         Modification of and draws under Facility LCs in accordance with the LC
         Issuer's standard schedule for such charges as in effect from time to
         time.

                  2.19.5. Administration; Reimbursement by Lenders. Upon receipt
         from the beneficiary of any Facility LC of any demand for payment under
         such Facility LC, the LC Issuer shall notify the Administrative Agent
         and the Administrative Agent shall promptly notify the Parent Borrower
         and each other Lender as to the amount to be paid by the LC Issuer as a
         result of such demand and the proposed payment date (the "LC Payment
         Date"). The responsibility of the LC Issuer to the Parent Borrower and
         each Lender shall be only to determine that the documents (including
         each demand for payment) delivered under each Facility LC in connection
         with such presentment shall be in conformity in all material respects
         with such Facility LC. The LC Issuer shall endeavor to exercise the
         same care in the issuance and administration of the Facility LCs as it
         does with respect to letters of credit in which no participations are
         granted, it being understood that in the absence of any gross
         negligence or willful misconduct by the LC Issuer, each Lender shall be
         unconditionally and irrevocably liable without regard to the occurrence
         of any Default or any condition precedent whatsoever, to reimburse the
         LC Issuer on demand for (i) such Lender's Pro Rata Share of the amount
         of each payment made by the LC Issuer under each Facility LC to the
         extent such amount is not reimbursed by the Parent Borrower pursuant to
         Section 2.19.6 below, plus (ii) interest on the foregoing amount to be
         reimbursed by such Lender, for each day from the date of the LC
         Issuer's demand for such reimbursement (or, if such demand is made
         after 11:00 a.m. (Dallas time) on such date, from the next succeeding
         Business Day) to the date on which such Lender pays the amount to be
         reimbursed by it, at a rate of interest per annum equal to the Federal
         Funds Effective Rate for the first three days and, thereafter, at a
         rate of interest equal to the rate applicable to Floating Rate
         Advances.

                  2.19.6. Reimbursement by Parent Borrower. The Parent Borrower
         shall be irrevocably and unconditionally obligated to reimburse the LC
         Issuer on or before the applicable LC Payment Date for any amounts to
         be paid by the LC Issuer upon any drawing under any Facility LC,
         without presentment, demand, protest or other formalities of any kind;
         provided that neither the Parent Borrower nor any Lender shall hereby
         be precluded from asserting any claim for direct (but not
         consequential) damages suffered by the Parent Borrower or such Lender
         to the extent, but only to the extent, caused by (i) the willful
         misconduct or gross negligence of the LC Issuer in determining whether
         a request presented under any Facility LC issued by it complied with
         the terms of such Facility LC or (ii) the LC Issuer's failure to pay
         under any Facility LC issued by it after the presentation to it of a
         request strictly complying with the terms and conditions of such
         Facility LC. All such amounts paid by the LC Issuer and remaining
         unpaid by the Parent Borrower shall bear interest, payable on demand,
         for each day until paid at a rate per annum equal to (x) the rate
         applicable to Floating Rate Advances for such day if such day falls on
         or before the applicable LC Payment Date and (y) the sum of 2% plus the
         rate applicable to Floating Rate Advances for such day if such day
         falls after such LC Payment Date. The LC Issuer will pay to each Lender
         ratably in accordance with its Pro Rata Share all amounts received by
         it from the

                                      -25-

<PAGE>   33

         Parent Borrower for application in payment, in whole or in part, of the
         Reimbursement Obligation in respect of any Facility LC issued by the LC
         Issuer, but only to the extent such Lender has made payment to the LC
         Issuer in respect of such Facility LC pursuant to Section 2.19.5.
         Subject to the terms and conditions of this Agreement (including
         without limitation the submission of a Borrowing Notice in compliance
         with Section 2.8 and the satisfaction of the applicable conditions
         precedent set forth in Article IV), the Parent Borrower may request an
         Advance hereunder for the purpose of satisfying any Reimbursement
         Obligation.

                  2.19.7. Obligations Absolute. The Parent Borrower's
         obligations under this Section 2.19 shall be absolute and unconditional
         under any and all circumstances and irrespective of any setoff,
         counterclaim or defense to payment which the Parent Borrower may have
         or have had against the LC Issuer, any Lender or any beneficiary of a
         Facility LC. The Parent Borrower further agrees with the LC Issuer and
         the Lenders that the LC Issuer and the Lenders shall not be responsible
         for, and the Parent Borrower's Reimbursement Obligation in respect of
         any Facility LC shall not be affected by, among other things, the
         validity or genuineness of documents or of any endorsements thereon,
         even if such documents should in fact prove to be in any or all
         respects invalid, fraudulent or forged, or any dispute between or among
         the Parent Borrower, any of its Affiliates, the beneficiary of any
         Facility LC or any financing institution or other party to whom any
         Facility LC may be transferred or any claims or defenses whatsoever of
         the Parent Borrower or of any of its Affiliates against the beneficiary
         of any Facility LC or any such transferee. The LC Issuer shall not 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 Facility LC. The Parent Borrower agrees that any
         action taken or omitted by the LC Issuer or any Lender under or in
         connection with each Facility LC and the related drafts and documents,
         if done without gross negligence, bad faith or willful misconduct,
         shall be binding upon the Parent Borrower and shall not put the LC
         Issuer or any Lender under any liability to the Parent Borrower.
         Nothing in this Section 2.19.7 is intended to limit the right of the
         Parent Borrower to make a claim against the LC Issuer for damages as
         contemplated by the proviso to the first sentence of Section 2.19.6.

                  2.19.8. Actions of LC Issuer. The LC Issuer shall be entitled
         to rely, and shall be fully protected in relying, upon any Facility LC,
         draft, writing, resolution, notice, consent, certificate, affidavit,
         letter, cablegram, telegram, telecopy, telex or teletype message,
         statement, order or other document reasonably believed by it to be
         genuine and correct and to have been signed, sent or made by the proper
         Person or Persons, and upon advice and statements of legal counsel,
         independent accountants and other experts selected by the LC Issuer.
         The LC Issuer shall be fully justified in failing or refusing to take
         any action under this Agreement unless it shall first have received
         such advice or concurrence of the Required Lenders as it reasonably
         deems appropriate or it shall first be indemnified to its reasonable
         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. Notwithstanding any other provision of this Section
         2.19, the LC Issuer shall in all cases be fully protected in acting, or
         in refraining from acting, under this Agreement in accordance with a
         request of the Required Lenders, and such request and any action taken
         or failure to act

                                      -26-

<PAGE>   34

         pursuant thereto shall be binding upon the Lenders and any future
         holders of a participation in any Facility LC.

                  2.19.9. Indemnification. The Parent Borrower hereby agrees to
         indemnify and hold harmless each Lender, the LC Issuer and the
         Administrative Agent, and their respective directors, officers, agents
         and employees from and against any and all claims and damages, losses,
         liabilities, costs or expenses (including reasonable attorneys' fees
         and disbursements) which such Lender, the LC Issuer or the
         Administrative Agent may incur (or which may be claimed against such
         Lender, the LC Issuer or the Administrative Agent by any Person
         whatsoever) by reason of or in connection with the issuance, execution
         and delivery or transfer of or payment or failure to pay under any
         Facility LC or any actual or proposed use of any Facility LC,
         including, without limitation, any claims, damages, losses,
         liabilities, costs or expenses which the LC Issuer may incur by reason
         of or in connection with (i) the failure of any other Lender to fulfill
         or comply with its obligations to the LC Issuer hereunder (but nothing
         herein contained shall affect any rights the Parent Borrower may have
         against any defaulting Lender) or (ii) by reason of or on account of
         the LC Issuer issuing any Facility LC which specifies that the term
         "Beneficiary" included therein includes any successor by operation of
         law of the named Beneficiary, but which Facility LC does not require
         that any drawing by any such successor Beneficiary be accompanied by a
         copy of a legal document, satisfactory to the LC Issuer, evidencing the
         appointment of such successor Beneficiary; provided that the Parent
         Borrower shall not be required to indemnify any Lender, the LC Issuer
         or the Administrative Agent or any director, officer, agent or employee
         thereof for any claims, damages, losses, liabilities, costs or expenses
         to the extent, but only to the extent, caused by (x) the willful
         misconduct, bad faith or gross negligence of the LC Issuer in
         determining whether a request presented under any Facility LC complied
         with the terms of such Facility LC or (y) the LC Issuer's failure to
         pay under any Facility LC after the presentation to it of a request
         strictly complying with the terms and conditions of such Facility LC.
         Nothing in this Section 2.19.9 is intended to limit the obligations of
         the Parent Borrower under any other provision of this Agreement.

                  2.19.10. Lenders' Indemnification. Each Lender shall, ratably
         in accordance with its Pro Rata Share, indemnify the LC Issuer, its
         Affiliates and their respective directors, officers, agents and
         employees (to the extent not reimbursed by the Parent Borrower) against
         any cost, expense (including reasonable counsel fees and
         disbursements), claim, demand, action, loss or liability (except such
         as result from such indemnitees' gross negligence or willful misconduct
         or the LC Issuer's failure to pay under any Facility LC after the
         presentation to it of a request strictly complying with the terms and
         conditions of the Facility LC) that such indemnitees may suffer or
         incur in connection with this Section 2.19 or any action taken or
         omitted by such indemnitees hereunder.

                  2.19.11. Facility LC Collateral Account. The Parent Borrower
         agrees that it will, after the occurrence of a Default and upon the
         request of the Administrative Agent or the Required Lenders and until
         the final expiration date of any Facility LC and thereafter as long as
         any amount is payable to the LC Issuer or the Lenders in respect of any
         Facility LC, maintain a special

                                      -27-

<PAGE>   35

         collateral account pursuant to arrangements satisfactory to the
         Administrative Agent (the "Facility LC Collateral Account") at the
         Administrative Agent's office at the address specified pursuant to
         Article XIII, in the name of such Parent Borrower but under the sole
         dominion and control of the Administrative Agent, for the benefit of
         the Lenders and in which such Parent Borrower shall have no interest
         other than as set forth in Section 8.1. The Parent Borrower hereby
         pledges, assigns and grants to the Administrative Agent, on behalf of
         and for the ratable benefit of the Lenders and the LC Issuer, a
         security interest in all of the Parent Borrower's right, title and
         interest in and to all funds which may from time to time be on deposit
         in the Facility LC Collateral Account to secure the prompt and complete
         payment and performance of the Obligations. The Administrative Agent
         will invest any funds on deposit from time to time in the Facility LC
         Collateral Account in certificates of deposit of Bank One having a
         maturity not exceeding 30 days. Nothing in this Section 2.19.11 shall
         either obligate the Administrative Agent to require the Parent Borrower
         to deposit any funds in the Facility LC Collateral Account or limit the
         right of the Administrative Agent to release any funds held in the
         Facility LC Collateral Account in each case other than as required by
         Section 8.1.

                  2.19.12. Rights as a Lender. In its capacity as a Lender, the
         LC Issuer shall have the same rights and obligations as any other
         Lender.

         2.20. Replacement of Lender. If either Borrower is required pursuant to
Section 3.1, 3.2 or 3.5 to make any additional payment to any Lender or if any
Lender's obligation to make or continue, or to convert Floating Rate Advances
into, Eurodollar Advances shall be suspended pursuant to Section 3.3 (any Lender
so affected an "Affected Lender"), the Borrowers may elect, if such amounts
continue to be charged or such suspension is still effective, to replace such
Affected Lender as a Lender party to this Agreement, provided that no Default or
Unmatured Default shall have occurred and be continuing at the time of such
replacement, and provided further that, concurrently with such replacement, (i)
another bank or other entity which is reasonably satisfactory to the Borrowers
and the Administrative Agent shall agree, as of such date, to purchase for cash
the Credit Extensions and other Obligations due to the Affected Lender pursuant
to an assignment substantially in the form of Exhibit C and to become a Lender
for all purposes under this Agreement and to assume all obligations of the
Affected Lender to be terminated as of such date and to comply with the
requirements of Section 12.3 applicable to assignments, and (ii) the Borrowers
shall pay to such Affected Lender in same day funds on the day of such
replacement (A) all interest, fees and other amounts then accrued but unpaid to
such Affected Lender by the Borrowers hereunder to and including the date of
termination, including without limitation payments due to such Affected Lender
under Sections 3.1, 3.2 and 3.5, and (B) an amount, if any, equal to the payment
which would have been due to such Lender on the day of such replacement under
Section 3.4 had the Credit Extensions of such Affected Lender been prepaid on
such date rather than sold to the replacement Lender.

         2.21. Swing Line Subfacility.

                  2.21.1. Conditions. For the convenience of the parties,
         Administrative Agent, solely for its own account, may make any
         requested Advance under the Revolving Credit Facility (which request
         must be made before 1:00 p.m. (Dallas time) on the Business Day the
         Advance is to be

                                      -28-

<PAGE>   36

         made and may be telephonic if confirmed in writing within two Business
         Days) in the minimum amount of $100,000 (or a greater integral multiple
         of $100,000) directly to Parent Borrower as a Swing Line Advance
         without requiring each other Lender to fund its Pro Rata Share thereof
         on such Business Day. Swing Line Advances are subject to the following
         conditions:

                  (i) Each Swing Line Advance must occur on a Business Day
         before the Facility Termination Date;

                  (ii) The aggregate principal outstanding of all Swing Line
         Advances may not exceed $15,000,000; the aggregate principal
         outstanding of all Swing Line Advances, all other Advances under the
         Revolving Credit Facility, and all LC Obligations may not exceed the
         Aggregate Commitment under the Revolving Credit Facility; and no Swing
         Line Advance shall be made which would cause the aggregate principal
         outstanding of all Loans (including Swing Line Advances) made by the
         Administrative Agent under the Revolving Credit Facility to exceed the
         Administrative Agent's Commitment under the Revolving Credit Facility;

                  (iii) Each Swing Line Advance shall be paid in full by the
         Parent Borrower on the Business Day immediately succeeding the date of
         such Swing Line Advance by the funding of an Advance under the
         Revolving Credit Facility and in any event on the Facility Termination
         Date; and

                  (iv) Each Swing Line Advance shall be a Floating Rate Advance.

                  2.21.2. Lenders' Funding of Swing Line Advances as Advances
         Under Revolving Credit Facility. The Administrative Agent shall give to
         the Lenders notice of each Swing Line Advance not later than 3:00 p.m.
         (Dallas time) on the date of such Swing Line Advance, which notice
         shall, on behalf of the Parent Borrower (and for such purpose the
         Parent Borrower hereby irrevocably directs the Administrative Agent to
         act on its behalf), request each Lender to make, and each Lender hereby
         agrees to make, an Advance in an amount equal to such Lender's Pro Rata
         Share of the aggregate amount of the Swing Line Advances (the "Refunded
         Swing Line Advances") outstanding on the date of such notice, to repay
         the Administrative Agent. Each Lender shall make the amount of such
         Advance available to the Administrative Agent in immediately available
         funds, not later than noon (Dallas time) one Business Day after the
         date of such notice. The proceeds of such Advance shall be immediately
         made available to the Administrative Agent for application by the
         Administrative Agent to the repayment of the Refunded Swing Line
         Advances. The Parent Borrower irrevocably authorizes the Administrative
         Agent to charge the Parent Borrower's accounts with the Administrative
         Agent in order to immediately pay the amount of such Refunded Swing
         Line Advances to the extent amounts received from the Lenders are not
         sufficient to repay in full such Refunded Swing Line Advances (with
         notice of such charge being provided to the Parent Borrower, provided
         that the failure to give such notice shall not affect the validity of
         such charge). All such Refunded Swing Line Advances shall be subject to
         all provisions of this Agreement concerning Advances under the
         Revolving Credit Facility. If prior to the time an Advance would
         otherwise have been made pursuant to this section, Advances may not be
         made

                                      -29-

<PAGE>   37

         as contemplated by this section, each Lender shall irrevocably and
         unconditionally purchase and receive from Administrative Agent a
         ratable participation in such Swing Line Advance and shall make
         available to Administrative Agent in immediately available funds its
         Pro Rata Share of such unpaid amount, together with interest from the
         date when its payment was due to, but not including, the date of
         payment. If a Lender does not promptly pay its amount upon
         Administrative Agent's demand, and until such Lender makes the required
         payment, Administrative Agent is deemed to continue to have outstanding
         a Swing Line Advance in the amount of such Lender's unpaid obligation.
         Parent Borrower shall make each payment of all or any part of any Swing
         Line Advance to Administrative Agent for the ratable benefit of
         Administrative Agent and those Lenders who have funded their
         participations in Swing Line Advances under this Section (but all
         interest accruing on Swing Line Advances before the funding date of any
         Advance under the Revolving Credit Facility to repay such Swing Line
         Advance or any participation is payable solely to Administrative Agent
         for its own account).

         2.22. Revolving Subfacility.

                  (a)      From and including the date of this Agreement and
                           prior to the Facility Termination Date, each Lender
                           severally agrees, on the terms and conditions set
                           forth in this Agreement, to make Loans to the
                           Borrowers from time to time for the purposes
                           hereinafter set forth; provided that the aggregate
                           principal amount of the Loans outstanding under this
                           Section 2.22 shall not at any time exceed $10,000,000
                           (as such aggregate amount may be increased or reduced
                           from time to time, the "Revolving Subfacility
                           Limit"), and provided further that after giving
                           effect to the making of each such Loan, such Lender's
                           Outstanding Credit Exposure shall not exceed its
                           Commitment. Subject to the terms of this Agreement,
                           the Borrowers may borrow, repay, and reborrow at any
                           time prior to the Facility Termination Date amounts
                           under the Revolving Subfacility. The Borrowers hereby
                           designate Loans under the Revolving Subfacility Limit
                           as Designated Senior Debt under the Indenture.

                  (b)      Loans under this Section 2.22 may consist of Floating
                           Rate Advances or Eurodollar Advances, or a
                           combination thereof, as a Borrower may request, and
                           may be repaid and reborrowed in accordance with the
                           provisions hereof. The principal amount of all Loans
                           under the Revolving Subfacility shall be paid in full
                           by the Borrowers on the Facility Termination Date.
                           The obligation to repay the Loans under the Revolving
                           Subfacility shall be joint and several obligations of
                           the Borrowers.

         2.23. Prepayments from Sale of Assets. Concurrently with the receipt of
Net Cash Proceeds from the sale or disposition by the Parent Borrower or any
Subsidiary of any assets at any time which are permitted to be sold or disposed
of pursuant to Section 6.13 of this Agreement (other than (i) the sale of
inventory in the ordinary course of business, (ii) when no Default exists, the
sale of accounts or notes receivable described in Section 6.13(iii), and (iii)
when no Default exists, other sales or dispositions which

                                      -30-

<PAGE>   38

yield Net Cash Proceeds in an amount not to exceed $5,000,000 in the aggregate
during the term of this Agreement), the Parent Borrower shall prepay or cause to
be prepaid the Advances in a principal amount equal to 100% of such Net Cash
Proceeds. Notwithstanding anything to the contrary contained herein, any
prepayment required by this Section 2.23 to be applied to Eurodollar Loans may
be paid by the Parent Borrower into a segregated interest bearing account of
Parent Borrower designated by the Administrative Agent for application to the
Loans upon the last day of an Interest Period applicable thereto.

         2.24. Joint and Several Liability of the Borrowers.

                  (a) Each of the Borrowers is accepting joint and several
         liability hereunder with respect to the Joint and Several Obligations
         in consideration of the financial accommodation to be provided by the
         Lenders under Section 2.22 of this Agreement, for the mutual benefit,
         directly and indirectly, of each of the Borrowers and in consideration
         of the undertakings of each of the Borrowers to accept joint and
         several liability for the Joint and Several Obligations of each of them
         under Section 2.22.

                  (b) Each of the Borrowers jointly and severally hereby
         irrevocably and unconditionally accepts, not merely as a surety but
         also as a co-debtor, joint and several liability with the other
         Borrower with respect to the payment and performance of all of the
         Joint and Several Obligations arising under this Agreement and the
         other Loan Documents, it being the intention of the parties hereto that
         all the Joint and Several Obligations shall be the joint and several
         obligations of each of the Borrowers without preferences or distinction
         among them.

                  (c) If and to the extent that either of the Borrowers shall
         fail to make any payment with respect to any of the Joint and Several
         Obligations hereunder as and when due or to perform any of such Joint
         and Several Obligations in accordance with the terms thereof, then in
         each such event, the other Borrower will make such payment with respect
         to, or perform, such Joint and Several Obligations.

                  (d) The obligations of each Borrower under the provisions of
         this Section 2.24 constitute full recourse obligations of such
         Borrower, enforceable against it to the full extent of its properties
         and assets, irrespective of the validity, regularity or enforceability
         of this Agreement or any other circumstances whatsoever.

                  (e) Except as otherwise expressly provided herein, each
         Borrower hereby waives notice of acceptance of its joint and several
         liability, notice of occurrence of any Default or Unmatured Default
         (except to the extent notice is expressly required to be given pursuant
         to the terms of this Agreement), or of any demand for any payment under
         this Agreement, notice of any action at any time taken or omitted by
         the Administrative Agent or the Lenders under or in respect of any of
         the Joint and Several Obligations hereunder, any requirement of
         diligence and, generally, all demands, notices and other formalities of
         every kind in connection with this Agreement. Each Borrower hereby
         assents to, and waives notice of, any extension or postponement of the
         time for the payment of any of the Joint and Several Obligations
         hereunder, the acceptance of any partial

                                      -31-

<PAGE>   39

         payment thereon, any waiver, consent or other action or acquiescence by
         the Administrative Agent or the Lenders at any time or times in respect
         of any default by a Borrower in the performance or satisfaction of any
         term, covenant, condition or provision of this Agreement or any other
         Loan Document, any and all other indulgences whatsoever by the
         Administrative Agent or the Lenders in respect of any of the Joint and
         Several Obligations hereunder, and the taking, addition, substitution
         or release, in whole or in part, at any time or times, of any security
         for any of such Joint and Several Obligations or the addition,
         substitution or release, in whole or in part, of either Borrower.
         Without limiting the generality of the foregoing, each Borrower assents
         to any other action or delay in acting or any failure to act on the
         part of the Administrative Agent or the Lenders, including, without
         limitation, any failure strictly or diligently to assert any right or
         to pursue any remedy or to comply fully with applicable laws or
         regulations thereunder which might, but for the provisions of this
         Section 2.24, afford grounds for terminating, discharging or relieving
         such Borrower, in whole or in part, from any of its obligations under
         this Section 2.24, it being the intention of each Borrower that, so
         long as any of the Joint and Several Obligations remain unsatisfied,
         the obligations of such Borrower under this Section 2.24 shall not be
         discharged except by performance and then only to the extent of such
         performance. The obligations of each Borrower under this Section 2.24
         shall not be diminished or rendered unenforceable by any winding up,
         reorganization, arrangement, liquidation, reconstruction or similar
         proceeding with respect to any reconstruction or similar proceeding
         with respect to a Borrower or any Lender. The joint and several
         liability of the Borrowers hereunder shall continue in full force and
         effect notwithstanding any absorption, merger, amalgamation or any
         other change whatsoever in the name, membership, constitution or place
         of formation of a Borrower or any Lender.

                  (f) The provisions of this Section 2.24 are made for the
         benefit of the Administrative Agent and the Lenders and their
         respective successors and assigns, and may be enforced by any such
         Person from time to time against either of the Borrowers as often as
         occasion therefor may arise and without requirement on the part of any
         Lender first to marshal any of its claims or to exercise any of its
         rights against the other Borrower or to exhaust any remedies available
         to it against the other Borrower or to resort to any other source or
         means of obtaining payment of any of the Joint and Several Obligations
         or to elect any other remedy. The provisions of this Section 2.24 shall
         remain in effect until all the Joint and Several Obligations hereunder
         shall have been paid in full or otherwise fully satisfied. If at any
         time, any payment, or any part thereof, made in respect of any of the
         Joint and Several Obligations, is rescinded or must otherwise be
         restored or returned by the Lenders upon the insolvency, bankruptcy or
         reorganization of either of the Borrowers, or otherwise, the provisions
         of this Section 2.24 will forthwith be reinstated and in effect as
         though such payment had not been made.

                  (g) Notwithstanding any provision to the contrary contained
         herein or in any other of the Loan Documents, the obligations of
         Subsidiary Borrower hereunder shall be limited to an aggregate amount
         equal to the largest amount that would not render its obligations
         hereunder subject to avoidance under Section 548 of the Bankruptcy Code
         or any comparable provisions of any applicable state law.

                                      -32-

<PAGE>   40

         2.25. Prepayments from Sales of Capital Stock. Concurrently with the
receipt of Net Cash Proceeds from the sale or disposition by Parent Borrower to
any Person of any common stock, preferred stock, warrant or other equity
interests of Parent Borrower, the Parent Borrower shall prepay Advances in a
principal amount equal to 100% of such Net Cash Proceeds; provided however, the
Parent Borrower is not required to make a prepayment under this Section 2.25 if
and to the extent that the Parent Borrower (a) issues common stock, preferred
stock, warrant or other equity interests pursuant to stock options and provides
other stock based benefit awards to the directors, officers or employees of the
Parent Borrower, its Subsidiaries or Affiliates or (b) uses such Net Cash
Proceeds solely to fund a Permitted Acquisition, so long as in each case no
Default has occurred and is continuing immediately before and immediately after
such issuance or payment. Notwithstanding anything to the contrary contained
herein, any prepayment required by this Section 2.25 to be applied to Eurodollar
Loans may be paid by the Parent Borrower into a segregated interest bearing
account of the Parent Borrower designated by the Administrative Agent for
application to the Loans upon the last day of an Interest Period applicable
thereto.

                                   ARTICLE III

                             YIELD PROTECTION; TAXES

         3.1. Yield Protection. If, on or after the date of this Agreement, the
adoption of any law or any governmental or quasi-governmental rule, regulation,
policy, guideline or directive (whether or not having the force of law), or any
change in the interpretation or administration thereof by any governmental or
quasi-governmental authority, central bank or comparable agency charged with the
interpretation or administration thereof, or compliance by any Lender or
applicable Lending Installation or the LC Issuer with any request or directive
(whether or not having the force of law) of any such authority, central bank or
comparable agency:

                  (i) subjects any Lender or any applicable Lending Installation
         or the LC Issuer to any Taxes, or changes the basis of taxation of
         payments (other than with respect to Excluded Taxes) to any Lender or
         the LC Issuer in respect of its Eurodollar Loans, Facility LCs or
         participations therein, or

                  (ii) imposes or increases or deems applicable any reserve,
         assessment, insurance charge, special deposit or similar requirement
         against assets of, deposits with or for the account of, or credit
         extended by, any Lender or any applicable Lending Installation or the
         LC Issuer (other than reserves and assessments taken into account in
         determining the interest rate applicable to Eurodollar Advances), or

                  (iii) imposes any other condition the result of which is to
         increase the cost to any Lender or any applicable Lending Installation
         or the LC Issuer of making, funding or maintaining its Eurodollar
         Loans, or of issuing or participating in Facility LCs, or reduces any
         amount receivable by any Lender or any applicable Lending Installation
         or the LC Issuer in connection with its Eurodollar Loans, Facility LCs
         or participations therein, or requires any Lender or any

                                      -33-

<PAGE>   41

         applicable Lending Installation or the LC Issuer to make any payment
         calculated by reference to the amount of Eurodollar Loans, Facility LCs
         or participations therein held or interest or LC Fees received by it,
         by an amount deemed material by such Lender or the LC Issuer as the
         case may be,

and the result of any of the foregoing is to increase the cost to such Lender or
applicable Lending Installation or the LC Issuer, as the case may be, of making
or maintaining its Eurodollar Loans or Commitment or of issuing or participating
in Facility LCs or to reduce the return received by such Lender or applicable
Lending Installation or the LC Issuer, as the case may be, in connection with
such Eurodollar Loans, Commitment, Facility LCs or participations therein, then,
within 15 days of demand by such Lender or the LC Issuer, as the case may be,
the Borrowers shall pay such Lender or the LC Issuer, as the case may be, such
additional amount or amounts as will compensate such Lender or the LC Issuer, as
the case may be, for such increased cost or reduction in amount received.

         3.2. Changes in Capital Adequacy Regulations. If a Lender or the LC
Issuer determines the amount of capital required or expected to be maintained by
such Lender or the LC Issuer, any Lending Installation of such Lender or the LC
Issuer, or any corporation controlling such Lender or the LC Issuer is increased
as a result of a Change, then, within 15 days of demand by such Lender or the LC
Issuer, the Borrowers shall pay such Lender or the LC Issuer the amount
necessary to compensate for any shortfall in the rate of return on the portion
of such increased capital which such Lender or the LC Issuer determines is
attributable to this Agreement, its Outstanding Credit Exposure or its
Commitment to make Loans and issue or participate in Facility LCs, as the case
may be, hereunder (after taking into account such Lender's or the LC Issuer's
policies as to capital adequacy). "Change" means (i) any change after the date
of this Agreement in the Risk-Based Capital Guidelines, or (ii) any adoption of
or change in any other law, governmental or quasi-governmental rule, regulation,
policy, guideline, interpretation, or directive (whether or not having the force
of law) after the date of this Agreement which affects the amount of capital
required or expected to be maintained by any Lender or the LC Issuer or any
Lending Installation or any corporation controlling any Lender or the LC Issuer.
"Risk-Based Capital Guidelines" means (i) the risk-based capital guidelines in
effect in the United States on the date of this Agreement, including transition
rules, and (ii) the corresponding capital regulations promulgated by regulatory
authorities outside the United States implementing the July 1988 report of the
Basle Committee on Banking Regulation and Supervisory Practices Entitled
"International Convergence of Capital Measurements and Capital Standards,"
including transition rules, and any amendments to such regulations adopted prior
to the date of this Agreement.

         3.3. Availability of Types of Advances. If any Lender determines that
maintenance of its Eurodollar Loans at a suitable Lending Installation would
violate any applicable law, rule, regulation, or directive, whether or not
having the force of law, or if the Required Lenders determine that (i) deposits
of a type and maturity appropriate to match fund Eurodollar Advances are not
available or (ii) the interest rate applicable to Eurodollar Advances does not
accurately reflect the cost of making or maintaining Eurodollar Advances, then
the Administrative Agent shall suspend the availability of Eurodollar Advances
and require any affected Eurodollar Advances to be repaid or converted to
Floating Rate Advances, subject to the payment of any funding indemnification
amounts required by Section 3.4.

                                      -34-

<PAGE>   42

         3.4. Funding Indemnification. If any payment of a Eurodollar Advance
occurs on a date which is not the last day of the applicable Interest Period,
whether because of acceleration, prepayment or otherwise, or a Eurodollar
Advance is not made on the date specified by the Borrowers for any reason other
than default by the Lenders, the Borrowers will indemnify each Lender for any
loss or cost incurred by it resulting therefrom, including, without limitation,
any loss or cost in liquidating or employing deposits acquired to fund or
maintain such Eurodollar Advance.

         3.5. Taxes.

                  (i) All payments by the Borrowers to or for the account of any
         Lender, the LC Issuer or the Administrative Agent hereunder or under
         any Note or Facility LC Application shall be made free and clear of and
         without deduction for any and all Taxes. If the Borrowers shall be
         required by law to deduct any Taxes from or in respect of any sum
         payable hereunder to any Lender, the LC Issuer or the Administrative
         Agent, (a) the sum payable shall be increased as necessary so that
         after making all required deductions (including deductions applicable
         to additional sums payable under this Section 3.5) such Lender, the LC
         Issuer or the Administrative Agent (as the case may be) receives an
         amount equal to the sum it would have received had no such deductions
         been made, (b) the Borrowers shall make such deductions, (c) the
         Borrowers shall pay the full amount deducted to the relevant authority
         in accordance with applicable law and (d) the Borrowers shall furnish
         to the Administrative Agent the original copy of a receipt evidencing
         payment thereof within 30 days after such payment is made.

                  (ii) In addition, the Borrowers hereby agree to pay any
         present or future stamp or documentary taxes and any other excise or
         property taxes, charges or similar levies which arise from any payment
         made hereunder or under any Note or Facility LC Application or from the
         execution or delivery of, or otherwise with respect to, this Agreement
         or any Note or Facility LC Application ("Other Taxes").

                  (iii) Each Borrower hereby agrees to indemnify the
         Administrative Agent, the LC Issuer and each Lender for the full amount
         of Taxes or Other Taxes (including, without limitation, any Taxes or
         Other Taxes imposed on amounts payable under this Section 3.5) paid by
         the Administrative Agent, the LC Issuer or such Lender and any
         liability (including penalties, interest and expenses) arising
         therefrom or with respect thereto. Payments due under this
         indemnification shall be made within 30 days of the date the
         Administrative Agent, the LC Issuer or such Lender makes demand
         therefor pursuant to Section 3.6.

                  (iv) Each Lender that is not incorporated under the laws of
         the United States of America or a state thereof (each a "Non-U.S.
         Lender") agrees that it will, not more than ten Business Days after the
         date of this Agreement, (i) deliver to each of the Borrowers and the
         Administrative Agent two duly completed copies of United States
         Internal Revenue Service Form W-8BEN or W-8ECI, certifying in either
         case that such Lender is entitled to receive payments under this
         Agreement without deduction or withholding of any United States federal
         income taxes, and (ii) deliver to each of the Borrowers and the
         Administrative Agent a United States Internal

                                      -35-

<PAGE>   43

         Revenue Form W-8 or W-9, as the case may be, and certify that it is
         entitled to an exemption from United States backup withholding tax.
         Each Non-U.S. Lender further undertakes to deliver to each of the
         Borrowers and the Administrative Agent (x) renewals or additional
         copies of such form (or any successor form) on or before the date that
         such form expires or becomes obsolete, and (y) after the occurrence of
         any event requiring a change in the most recent forms so delivered by
         it, such additional forms or amendments thereto as may be reasonably
         requested by the Borrowers or the Administrative Agent. All forms or
         amendments described in the preceding sentence shall certify that such
         Lender is entitled to receive payments under this Agreement without
         deduction or withholding of any United States federal income taxes,
         unless 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 or amendment with respect to it and such
         Lender advises the Borrowers and the Administrative Agent that it is
         not capable of receiving payments without any deduction or withholding
         of United States federal income tax.

                  (v) For any period during which a Non-U.S. Lender has failed
         to provide the Borrowers with an appropriate form pursuant to clause
         (iv), above (unless such failure is due to a change in treaty, law or
         regulation, or any change in the interpretation or administration
         thereof by any governmental authority, occurring subsequent to the date
         on which a form originally was required to be provided), such Non-U.S.
         Lender shall not be entitled to indemnification under this Section 3.5
         with respect to Taxes imposed by the United States; provided that,
         should a Non-U.S. Lender which is otherwise exempt from or subject to a
         reduced rate of withholding tax become subject to Taxes because of its
         failure to deliver a form required under clause (iv) above, the
         Borrowers shall take such steps as such Non-U.S. Lender shall
         reasonably request to assist such Non-U.S. Lender to recover such
         Taxes.

                  (vi) Any Lender that is entitled to an exemption from or
         reduction of withholding tax with respect to payments under this
         Agreement or any Note pursuant to the law of any relevant jurisdiction
         or any treaty shall deliver to the Borrowers (with a copy to the
         Administrative Agent), at the time or times prescribed by applicable
         law, such properly completed and executed documentation prescribed by
         applicable law as will permit such payments to be made without
         withholding or at a reduced rate.

                  (vii) If the U.S. Internal Revenue Service or any other
         governmental authority of the United States or any other country or any
         political subdivision thereof asserts a claim that the Administrative
         Agent did not properly withhold tax from amounts paid to or for the
         account of any Lender (because the appropriate form was not delivered
         or properly completed, because such Lender failed to notify the
         Administrative Agent of a change in circumstances which rendered its
         exemption from withholding ineffective, or for any other reason), such
         Lender shall indemnify the Administrative Agent fully for all amounts
         paid, directly or indirectly, by the Administrative Agent as tax,
         withholding therefor, or otherwise, including penalties and interest,
         and including taxes imposed by any jurisdiction on amounts payable to
         the Administrative Agent under this

                                      -36-

<PAGE>   44

         subsection, together with all costs and expenses related thereto
         (including attorneys fees and time charges of attorneys for the
         Administrative Agent, which attorneys may be employees of the
         Administrative Agent). The obligations of the Lenders under this
         Section 3.5(vii) shall survive the payment of the Obligations and
         termination of this Agreement.

         3.6. Lender Statements; Survival of Indemnity. To the extent reasonably
possible, each Lender shall designate an alternate Lending Installation with
respect to its Eurodollar Loans to reduce any liability of the Borrowers to such
Lender under Sections 3.1, 3.2 and 3.5 or to avoid the unavailability of
Eurodollar Advances under Section 3.3, so long as such designation is not, in
the reasonable judgment of such Lender, disadvantageous to such Lender. Each
Lender shall deliver a written statement of such Lender to the Borrowers (with a
copy to the Administrative Agent) as to the amount due, if any, under Section
3.1, 3.2, 3.4 or 3.5. Such written statement shall set forth in reasonable
detail the calculations upon which such Lender determined such amount and shall
be final, conclusive and binding on the Borrowers in the absence of manifest
error. Determination of amounts payable under such Sections in connection with a
Eurodollar Loan shall be calculated as though each Lender funded its Eurodollar
Loan through the purchase of a deposit of the type and maturity corresponding to
the deposit used as a reference in determining the Eurodollar Rate applicable to
such Loan, whether in fact that is the case or not. Unless otherwise provided
herein, the amount specified in the written statement of any Lender shall be
payable within fifteen (15) days after receipt by the Parent Borrower of such
written statement. The obligations of the Borrowers under Sections 3.1, 3.2, 3.4
and 3.5 shall survive payment of the Obligations and termination of this
Agreement.

                                   ARTICLE IV

                              CONDITIONS PRECEDENT

         4.1. Initial Advance. The Lenders shall not be required to make the
initial Credit Extension hereunder unless (a) the Borrowers have furnished to
the Administrative Agent with sufficient copies for the Lenders or (b) the
following shall have occurred, as applicable:

                  (i) Copies of the articles or certificate of incorporation of
         each Borrower, together with all amendments, and certificates of
         existence and good standing, each certified by the appropriate
         governmental officer in its jurisdiction of incorporation.

                  (ii) Copies of the articles or certificate of incorporation or
         other charter documents of each Guarantor, together with all
         amendments, and certificates of existence and good standing, each
         certified by the appropriate governmental officer in its jurisdiction
         of organization.

                  (iii) Copies, certified by the Secretary or Assistant
         Secretary of each Borrower, of its by-laws and of its Board of
         Directors' resolutions and of resolutions or actions of any other body
         authorizing the execution of the Loan Documents to which such Borrower
         is a party.

                                      -37-

<PAGE>   45

                  (iv) Copies certified by the Secretary or Assistant Secretary
         of each Guarantor, of its bylaws or other organization agreement, and
         of its Board of Directors resolutions or of resolutions or actions of
         any other body authorizing the execution of the Loan Documents to which
         such Guarantor is a party.

                  (v) An incumbency certificate, executed by the Secretary or
         Assistant Secretary of each Borrower, which shall identify by name and
         title and bear the signatures of the Authorized Officers and any other
         officers of such Borrower authorized to sign the Loan Documents to
         which such Borrower is a party, upon which certificate the
         Administrative Agent and the Lenders shall be entitled to rely until
         informed of any change in writing by such Borrower.

                  (vi) An incumbency certificate, executed by the Secretary or
         Assistant Secretary of each Guarantor, which shall identify by name and
         title and bear the signatures of the Authorized Officers and any other
         officers of such Guarantor authorized to sign the Loan Documents to
         which such Guarantor is a party, upon which certificate the
         Administrative Agent and the Lenders shall be entitled to rely until
         informed of any change in writing by such Guarantor.

                  (vii) A certificate, signed by the chief financial officer of
         each Borrower, stating that on the initial Credit Extension Date no
         Default or Unmatured Default has occurred and is continuing.

                  (viii) A written opinion of the Borrowers' and the Guarantors'
         counsel, addressed to the Lenders in substantially the form of Exhibit
         A.

                  (ix) Any Notes requested by a Lender pursuant to Section 2.13
         payable to the order of each such requesting Lender.

                  (x) Written money transfer instructions, in substantially the
         form of Exhibit D, addressed to the Administrative Agent and signed by
         an Authorized Officer, together with such other related money transfer
         authorizations as the Administrative Agent may have reasonably
         requested.

                  (xi) A Guaranty duly executed by the Guarantors.

                  (xii) The Administrative Agent shall have determined that (i)
         there has not been, since August 9, 2000, any material adverse change
         in primary or secondary loan syndication markets or in capital markets
         generally that would impair syndication of the Loans hereunder and (ii)
         the Parent Borrower has fully cooperated with the Administrative
         Agent's syndication efforts including, without limitation, by providing
         the Administrative Agent with information regarding the Parent
         Borrower's operations and prospects and such other information as the
         Administrative Agent deems necessary to successfully syndicate the
         Loans hereunder.

                  (xiii) If the initial Credit Extension will be the issuance of
         a Facility LC, a properly completed Facility LC Application.

                                      -38-

<PAGE>   46

                  (xiv) Copies, certified by an Authorized Officer of the Parent
         Borrower, of the November 2000 Acquisition Agreement and all related
         documents, instruments and agreements, together with evidence that all
         conditions precedent to the consummation of the transactions
         contemplated thereby, other than the making of the initial Credit
         Extension hereunder, shall have been satisfied or waived, and that such
         transaction shall be consummated simultaneous with the making of the
         initial Credit Extension hereunder.

                  (xv) Copies, certified by an Authorized Officer of the Parent
         Borrower, of that certain Agreement and Plan of Merger ("Premier
         Acquisition Agreement") dated as of August 11, 2000 among Premier
         Construction Products Statutory Trust, Premier Construction Products
         Acquisition Corp. and Republic Group Incorporated (together with its
         successors, "RGI") and all related documents, instruments and
         agreements, together with evidence that all conditions precedent to the
         consummation of the transactions contemplated thereby shall have been
         satisfied or waived, and that such transaction shall be consummated
         prior to or simultaneous with the making of the initial Credit
         Extension hereunder.

                  (xvi) A copy of the written opinion of RGI's counsel,
         delivered in connection with the Premier Acquisition Agreement, along
         with a letter addressed to the Lenders from RGI's counsel authorizing
         the reliance by the Lenders on such opinion, such opinion to be
         satisfactory to the Administrative Agent and addressing matters related
         to the Premier Acquisition Agreement and transactions contemplated
         thereby as may be requested by the Administrative Agent.

                  (xvii) A copy of the written opinion of Target's counsel
         delivered in connection with the November 2000 Acquisition, along with
         a letter addressed to the Lenders from Target's counsel authorizing the
         reliance by the Lenders on such opinion, such opinion to be
         satisfactory to the Administrative Agent and addressing matters related
         to the November 2000 Acquisition as may be requested by the
         Administrative Agent.

                  (xviii) Evidence that all funded Indebtedness owed by the
         Parent Borrower, its Subsidiaries and the Target, excluding the
         Existing Facility LCs and the Target Senior Subordinated Notes but
         including, without limitation, the Indebtedness evidenced by that
         certain Credit Agreement dated as of April 18, 1994, among the Parent
         Borrower, Bank One, NA (successor by merger to The First National Bank
         of Chicago), as Agent, and the other lenders named therein, as the same
         has been amended or modified from time to time, shall have been, or
         will be simultaneously with the funding of the initial Credit
         Extension, repaid in full.

                  (xix) Evidence that as of the date hereof, the Parent Borrower
         has or has placed in escrow upon terms satisfactory to the
         Administrative Agent at least $130,000,000 in cash available, which
         funds shall be used as a portion of the purchase price for the November
         2000 Acquisition.

                  (xx) Copies of (a) the pro forma opening consolidated
         financial statements for the Parent Borrower giving effect to the
         November 2000 Acquisition (b) projections updating

                                      -39-

<PAGE>   47

         projections previously provided to the Lenders, and (c) such other
         information reasonably requested by the Administrative Agent or the
         Required Lenders, all in form and substance satisfactory to the
         Administrative Agent and the Required Lenders.

                  (xxi) The corporate capital and ownership structure of the
         Parent Borrower and its Subsidiaries shall be as described in Schedule
         4. The Administrative Agent shall be satisfied with the management
         structure, legal structure, voting control, liquidity and
         capitalization of each Borrower as of the date of the initial Credit
         Extension.

                  (xxii) The Administrative Agent shall have received a true,
         correct, and complete copy of the Indenture governing the Target Senior
         Subordinated Notes (the "Indenture"), all material documents executed
         in connection therewith, and all amendments or supplements thereto,
         certified by an officer of the Parent Borrower to be true and correct
         and in full force and effect, together with a certificate of an officer
         of the Parent Borrower that no default then exists thereunder or will
         result from the transactions contemplated by this Agreement.

                  (xxiii) Such other documents as the Administrative Agent, any
         Lender or their counsel may have reasonably requested.

         4.2. Each Credit Extension. The Lenders shall not be required to make
any Credit Extension unless on the applicable Credit Extension Date:

                  (i) There exists no Default or Unmatured Default.

                  (ii) The representations and warranties contained in Article V
         are true and correct in all material respects as of such Credit
         Extension Date except to the extent any such representation or warranty
         is stated to relate solely to an earlier date, in which case such
         representation or warranty shall have been true and correct in all
         material respects on and as of such earlier date.

                  (iii) All legal matters incident to the making of such Credit
         Extension shall be reasonably satisfactory to the Lenders and their
         counsel.

                  (iv) If the Credit Extension will be the issuance of a
         Facility LC, a properly completed Facility LC Application shall have
         been executed and delivered to the LC Issuer.

         Each Borrowing Notice or request for issuance of a Facility LC with
respect to each such Credit Extension shall constitute a representation and
warranty by the Borrowers that the conditions contained in Sections 4.2(i) and
(ii) have been satisfied. Any Lender may require a duly completed compliance
certificate in substantially the form of Exhibit B as a condition to making a
Credit Extension.

                                      -40-

<PAGE>   48

                                    ARTICLE V

                         REPRESENTATIONS AND WARRANTIES

         The Borrowers represent and warrant to the Lenders that:

         5.1. Existence and Standing. Each of the Parent Borrower and its
Subsidiaries is a corporation, partnership (in the case of Subsidiaries only) or
limited liability company (in the case of Subsidiaries only) duly and properly
incorporated or organized, as the case may be, validly existing and (to the
extent such concept applies to such entity) in good standing under the laws of
its jurisdiction of incorporation or organization is duly qualified to transact
business and is in good standing in each jurisdiction in which its business is
conducted except where the failure to be so qualified could not reasonably be
expected to have a Material Adverse Effect.

         5.2. Authorization and Validity. The Parent Borrower has the corporate
power and authority and legal right to execute and deliver the Loan Documents to
which it is a party and to perform its obligations thereunder. The execution and
delivery by the Parent Borrower of the Loan Documents to which it is a party and
the performance of its obligations thereunder have been duly authorized by
proper corporate proceedings, and the Loan Documents to which the Parent
Borrower is a party constitute legal, valid and binding obligations of the
Parent Borrower enforceable against the Parent Borrower in accordance with their
terms, except as enforceability may be limited by bankruptcy, insolvency or
similar laws affecting the enforcement of creditors' rights generally or general
principles of equity.

         5.3. No Conflict; Government Consent. Neither the execution and
delivery by the Parent Borrower of the Loan Documents to which it is a party,
nor the consummation of the transactions therein contemplated, nor compliance
with the provisions thereof will violate (i) any law, rule, regulation, order,
writ, judgment, injunction, decree or award binding on the Parent Borrower or
any of its Subsidiaries other than violations which could not individually or in
the aggregate reasonably be expected to have a Material Adverse Effect or (ii)
the Parent Borrower's or any Subsidiary's articles or certificate of
incorporation, partnership agreement, certificate of partnership, articles or
certificate of organization, by-laws, or operating or other management
agreement, as the case may be, or (iii) the provisions of any indenture,
instrument or agreement to which the Parent Borrower or any of its Subsidiaries
is a party or is subject, or by which it, or its Property, is bound, or conflict
with or constitute a default thereunder, or result in, or require, the creation
or imposition of any Lien in, of or on the Property of the Parent Borrower or a
Subsidiary pursuant to the terms of any such indenture, instrument or agreement.
No order, consent, adjudication, approval, license, authorization, or validation
of, or filing, recording or registration with, or exemption by, or other action
in respect of any governmental or public body or authority, or any subdivision
thereof, which has not been obtained by the Parent Borrower or any of its
Subsidiaries, is required to be obtained by the Parent Borrower or any of its
Subsidiaries in connection with the execution and delivery of the Loan
Documents, the borrowings under this Agreement, the payment and performance by
the Parent Borrower of the Obligations or the legality, validity, binding effect
or enforceability of any of the Loan Documents except for such orders, consents,
adjudications, approvals, licenses, authorizations or validations of, or
filings, recordings or registrations with, or exemptions by or other actions the
failure

                                      -41-

<PAGE>   49

to obtain or make could not individually or in the aggregate reasonably be
expected to have a Material Adverse Effect.

         5.4. Financial Statements. The September 30, 2000 consolidated
financial statements of the Parent Borrower and its Subsidiaries heretofore
delivered to the Lenders were prepared in accordance with generally accepted
accounting principles in effect on the date such statements were prepared and
fairly present the consolidated financial condition and operations of the Parent
Borrower and its Subsidiaries at such date and the consolidated results of their
operations for the period then ended.

         5.5. Material Adverse Change. Since June 30, 2000, there has been no
change in the business, Property, financial condition or results of operations
of the Parent Borrower and its Subsidiaries taken as a whole which could
reasonably be expected to have a Material Adverse Effect.

         5.6. Taxes. The Parent Borrower and its Subsidiaries have filed all
United States federal tax returns and all other tax returns which are required
to be filed and have paid all taxes due pursuant to said returns or pursuant to
any assessment received by the Parent Borrower or any of its Subsidiaries,
except such taxes, if any, as are being contested in good faith and as to which
adequate reserves have been provided in accordance with Agreement Accounting
Principles and as to which no Lien exists and except where failure to file or
pay could not individually or in the aggregate reasonably be expected to have a
Material Adverse Effect. The latest period for which the Parent Borrower and its
Subsidiaries have been examined or for which the applicable statute of
limitations has expired is the fiscal year ended March 31, 1996. No tax liens
have been filed and no claims are being asserted with respect to any such taxes
which individually or in the aggregate have a Material Adverse Effect. The
charges, accruals and reserves on the books of the Parent Borrower and its
Subsidiaries in respect of any taxes or other governmental charges are adequate.
If any of its Subsidiaries is a limited liability company, each such limited
liability company qualifies for partnership tax treatment under United States
federal tax law.

         5.7. Litigation and Contingent Obligations. There is no litigation,
arbitration, governmental investigation, proceeding or inquiry pending or, to
the knowledge of any of their officers, threatened against or affecting the
Parent Borrower or any of its Subsidiaries which could individually or in the
aggregate reasonably be expected to have a Material Adverse Effect or which
seeks to prevent, enjoin or delay the making of any Credit Extensions. Other
than any liabilities which could not individually or in the aggregate reasonably
be expected to have a Material Adverse Effect, the Parent Borrower has no
material contingent obligations not provided for or disclosed in the financial
statements referred to in Section 5.4.

         5.8. Subsidiaries. Schedule 1 contains an accurate list of all
Subsidiaries of the Parent Borrower as of the date of this Agreement, setting
forth their respective jurisdictions of organization and the percentage of their
respective capital stock or other ownership interests owned by the Parent
Borrower or other Subsidiaries. All of the issued and outstanding shares of
capital stock or other ownership interests of such Subsidiaries have been (to
the extent such concepts are relevant with respect to such ownership interests)
duly authorized and issued and are fully paid and non-assessable.

                                      -42-

<PAGE>   50

         5.9. ERISA. Neither the Parent Borrower nor any other member of the
Controlled Group has incurred in the aggregate Unfunded Liabilities of all
Single Employer Plans in an amount that could reasonably be expected to have a
Material Adverse Effect. Neither the Parent Borrower nor any other member of the
Controlled Group has incurred, or is reasonably expected to incur, any
withdrawal liability to Multiemployer Plans in the aggregate in an amount that
could reasonably be expected to have a Material Adverse Effect. Each Plan
complies in all material respects with all applicable requirements of law and
regulations, and no Reportable Event has occurred with respect to any Plan that
could reasonably be expected to have a Material Adverse Effect.

         5.10. Accuracy of Information. No information, exhibit or report
furnished by the Parent Borrower or any of its Subsidiaries to the
Administrative Agent or to any Lender in connection with the negotiation of, or
compliance with, the Loan Documents contained any misstatement of material fact
or omitted to state a material fact necessary to make the statements contained
therein not misleading.

         5.11. Regulation U. Margin stock (as defined in Regulation U)
constitutes less than 25% of the value of those assets of the Parent Borrower
and its Subsidiaries which are subject to any limitation on sale, pledge, or
other restriction hereunder.

         5.12. Material Agreements. Neither the Parent Borrower nor any
Subsidiary is a party to any agreement or instrument or subject to any charter
or other corporate restriction which could reasonably be expected to have a
Material Adverse Effect. Neither the Parent Borrower nor any Subsidiary is in
default in the performance, observance or fulfillment of any of the obligations,
covenants or conditions contained in (i) any agreement to which it is a party,
which default could reasonably be expected to have a Material Adverse Effect or
(ii) any agreement or instrument evidencing or governing Indebtedness which
aggregates in excess of $2,500,000.

         5.13. Compliance With Laws. The Parent Borrower and its Subsidiaries
have complied with all applicable statutes, rules, regulations, orders and
restrictions of any domestic or foreign government or any instrumentality or
agency thereof having jurisdiction over the conduct of their respective
businesses or the ownership of their respective Property except for any failure
to comply with any of the foregoing which could not reasonably be expected to
have a Material Adverse Effect.

         5.14. Ownership of Properties. Except as set forth on Schedule 2, on
the date of this Agreement, the Parent Borrower and its Subsidiaries will have
good title, free of all Liens other than those permitted by Section 6.15, to all
of the Property and assets reflected in the Parent Borrower's most recent
consolidated financial statements provided to the Administrative Agent as owned
by the Parent Borrower and its Subsidiaries.

         5.15. Plan Assets; Prohibited Transactions. The Parent Borrower is not
an entity deemed to hold "plan assets" within the meaning of 29 C.F.R. Section
2510.3-101 of an employee benefit plan (as defined in Section 3(3) of ERISA)
which is subject to Title I of ERISA or any plan (within the meaning of Section
4975 of the Code), and neither the execution of this Agreement nor the making of
Credit

                                      -43-

<PAGE>   51

Extensions hereunder gives rise to a prohibited transaction within the meaning
of Section 406 of ERISA or Section 4975 of the Code.

         5.16. Environmental Matters. In the ordinary course of its business,
the officers of the Parent Borrower consider the effect of Environmental Laws on
the business of the Parent Borrower and its Subsidiaries, in the course of which
they identify and evaluate potential risks and liabilities accruing to the
Parent Borrower due to Environmental Laws. On the basis of this consideration,
the Parent Borrower has concluded that Environmental Laws cannot reasonably be
expected to have a Material Adverse Effect. Neither the Parent Borrower nor any
Subsidiary has received any notice to the effect that its operations are not in
material compliance with any of the requirements of applicable Environmental
Laws or are the subject of any federal or state investigation evaluating whether
any remedial action is needed to respond to a release of any toxic or hazardous
waste or substance into the environment, which non-compliance or remedial action
could reasonably be expected to have a Material Adverse Effect.

         5.17. Investment Company Act. Neither the Parent Borrower nor any
Subsidiary is an "investment company" or a company "controlled" by an
"investment company", within the meaning of the Investment Company Act of 1940,
as amended.

         5.18. Public Utility Holding Company Act. Neither the Parent Borrower
nor any Subsidiary is a "holding company" or a "subsidiary company" of a
"holding company", or an "affiliate" of a "holding company" or of a "subsidiary
company" of a "holding company", within the meaning of the Public Utility
Holding Company Act of 1935, as amended.

         5.19. Subordinated Indebtedness. The Obligations constitute senior
indebtedness which is entitled to the benefits of the subordination provisions
of all outstanding Subordinated Indebtedness.

         5.20. Post-Retirement Benefits. The present value of the expected cost
of post-retirement medical and insurance benefits payable by the Parent Borrower
and its Subsidiaries to its employees and former employees, as estimated by the
Parent Borrower in accordance with procedures and assumptions reasonably
acceptable to the Required Lenders, does not exceed $2,500,000.

         5.21. Solvency.

                  (i) Immediately after the consummation of the transactions to
         occur on the date hereof and immediately following the making of each
         Credit Extension, if any, made on the date hereof and after giving
         effect to the application of the proceeds of such Credit Extension, (a)
         the fair value of the assets of the Parent Borrower and its
         Subsidiaries on a consolidated basis, at a fair valuation, will exceed
         the debts and liabilities, subordinated, contingent or otherwise, of
         the Parent Borrower and its Subsidiaries on a consolidated basis; (b)
         the present fair saleable value of the Property of the Parent Borrower
         and its Subsidiaries on a consolidated basis will be greater than the
         amount that will be required to pay the probable liability of the
         Parent Borrower and its Subsidiaries on a consolidated basis on their
         debts and other liabilities, subordinated, contingent or otherwise, as
         such debts and other liabilities become absolute and matured; (c) the
         Parent

                                      -44-

<PAGE>   52

         Borrower and its Subsidiaries on a consolidated basis will be able to
         pay their debts and liabilities, subordinated, contingent or otherwise,
         as such debts and liabilities become absolute and matured; and (d) the
         Parent Borrower and its Subsidiaries on a consolidated basis will not
         have unreasonably small capital with which to conduct the businesses in
         which they are engaged as such businesses are now conducted and are
         proposed to be conducted after the date hereof.

                  (ii) The Parent Borrower does not intend to, or to permit any
         of its Subsidiaries to, and does not believe that it or any of its
         Subsidiaries will, incur debts beyond its ability to pay such debts as
         they mature, taking into account the timing of and amounts of cash to
         be received by it or any such Subsidiary and the timing of the amounts
         of cash to be payable on or in respect of its Indebtedness or the
         Indebtedness of any such Subsidiary.

         5.22. November 2000 Acquisition. The Administrative Agent and the
Lenders have received true, correct and complete copies of the November 2000
Acquisition Agreement and all related documents executed in connection with the
November 2000 Acquisition (including all exhibits, schedules and disclosure
letters referred to therein or delivered pursuant thereto, if any) and all
amendments thereto, waivers relating thereto and other side letters or
agreements affecting the terms thereof. None of such documents and agreements
has been amended or supplemented, nor have any of the provisions thereof been
waived, except pursuant to a written agreement or instrument which has been
delivered to the Administrative Agent and the Lenders. All of the
representations and warranties of the parties to the November 2000 Acquisition
Agreement contained in the November 2000 Acquisition Agreement are true and
correct in all material respects on and as of the date given, and no default or
event of default under the November 2000 Acquisition Agreement has occurred.

         5.23. Premier Acquisition Agreement. The Administrative Agent and the
Lenders have received true, correct and complete copies of the Premier
Acquisition Agreement and all related documents executed in connection with the
Premier Acquisition Agreement (including all exhibits, schedules and disclosure
letters referred to therein or delivered pursuant thereto, if any) and all
amendments thereto, waivers relating thereto and other side letters or
agreements affecting the terms thereof. None of such documents and agreements
has been amended or supplemented, nor have any of the provisions thereof been
waived, except pursuant to a written agreement or instrument which has been
delivered to the Administrative Agent and the Lenders. All of the
representations and warranties of the parties to the Premier Acquisition
Agreement contained in the Premier Acquisition Agreement are true and correct in
all material respects on and as of the date given, and no default or event of
default under the Premier Acquisition Agreement has occurred or will result from
the transactions contemplated by this Agreement.

         5.24. Indenture. The Parent Borrower has made a thorough and complete
review of the Indenture and compliance by RGI with the terms and provisions
thereof. No default, and no event which with the giving of notice or lapse of
time or both would be a default, exists under the Indenture or will result from
the transactions contemplated by this Agreement.

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<PAGE>   53

                                   ARTICLE VI

                                    COVENANTS

         During the term of this Agreement, unless the Required Lenders shall
otherwise consent in writing:

         6.1. Financial Reporting. The Parent Borrower will maintain, for itself
and each Subsidiary, a system of accounting established and administered in
accordance with generally accepted accounting principles, and furnish to the
Lenders:

                  (i) Within 120 days after the close of each of its fiscal
         years, an unqualified audit report certified by independent certified
         public accountants acceptable to the Lenders, prepared in accordance
         with Agreement Accounting Principles on a consolidated basis for itself
         and its Subsidiaries, including balance sheets as of the end of such
         period, related profit and loss and reconciliation of surplus
         statements, and a statement of cash flows, accompanied by any
         management letter prepared by said accountants.

                  (ii) Within 60 days after the close of each of the quarterly
         periods of each of its fiscal years, for itself and its Subsidiaries,
         consolidated unaudited balance sheets as at the close of each such
         period and consolidated profit and loss and reconciliation of surplus
         statements and a statement of cash flows for the period from the
         beginning of such fiscal year to the end of such quarter, all certified
         by its chief financial officer.

                  (iii) As soon as available, but in any event within 15 days
         before the beginning of each fiscal year of the Parent Borrower, a copy
         of the plan and forecast (including a projected consolidated balance
         sheet, income statement and funds flow statement) of the Parent
         Borrower for the forthcoming fiscal year.

                  (iv) Together with the financial statements required under
         Sections 6.1(i) and (ii), a compliance certificate in substantially the
         form of Exhibit B signed by its chief financial officer showing the
         calculations necessary to determine compliance with this Agreement and
         stating that no Default or Unmatured Default exists, or if any Default
         or Unmatured Default exists, stating the nature and status thereof.

                  (v) Within 270 days after the close of each fiscal year, a
         statement of the Unfunded Liabilities of each Single Employer Plan,
         certified as correct by Arthur Andersen LLP or an actuary enrolled
         under ERISA.

                  (vi) As soon as possible and in any event within 10 days after
         the Parent Borrower knows that any Reportable Event that could
         reasonably be expected to have a Material Adverse Effect has occurred
         with respect to any Plan, a statement, signed by the chief financial
         officer of the Parent Borrower, describing said Reportable Event and
         the action which the Parent Borrower proposes to take with respect
         thereto.

                                      -46-

<PAGE>   54

                  (vii) As soon as possible and in any event within 10 days
         after receipt by the Parent Borrower, a copy of (a) any notice or claim
         to the effect that the Parent Borrower or any of its Subsidiaries is or
         may be liable to any Person as a result of the release by the Parent
         Borrower, any of its Subsidiaries, or any other Person of any toxic or
         hazardous waste or substance into the environment, and (b) any notice
         alleging any violation of any federal, state or local environmental,
         health or safety law or regulation by the Parent Borrower or any of its
         Subsidiaries, which, in either case, could reasonably be expected to
         have a Material Adverse Effect.

                  (viii) Promptly upon the furnishing thereof to the
         shareholders of the Parent Borrower, copies of all financial
         statements, reports and proxy statements so furnished.

                  (ix) Promptly upon the filing thereof, copies of all
         registration statements and annual, quarterly, monthly or other regular
         reports which the Parent Borrower or any of its Subsidiaries files with
         the Securities and Exchange Commission.

                  (x) Promptly upon furnishing thereof to the holders of the
         Target Senior Subordinated Notes, copies of all reports, notices, and
         proxy statements so furnished.

                  (xi) Such other information (including non-financial
         information) as the Administrative Agent or any Lender may from time to
         time reasonably request.

         6.2. Use of Proceeds. The Parent Borrower will, and will cause each
Subsidiary to, use the proceeds of the Credit Extensions for general corporate
purposes, to finance a portion of the purchase price of the November 2000
Acquisition, to refinance existing Indebtedness of the Parent Borrower,
Subsidiaries and the Target, and to finance Acquisitions and Investments
permitted under Section 6.14, and capital expenditures permitted hereunder. The
Parent Borrower will not, nor will it permit any Subsidiary to, use any of the
proceeds of the Advances to purchase or carry any "margin stock" (as defined in
Regulation U).

         6.3. Notice of Default. The Parent Borrower will, and will cause each
Subsidiary to, give prompt notice (which notice shall in any event be given
within three (3) Business Days) in writing to the Lenders of the occurrence of
any Default or Unmatured Default and of any other development, financial or
otherwise, which could reasonably be expected to have a Material Adverse Effect.

         6.4. Conduct of Business. The Parent Borrower will, and will cause each
Subsidiary to, carry on and conduct its business in substantially the same
manner and in the construction products or building materials industry as it is
presently conducted and do all things necessary to remain duly incorporated or
organized, validly existing and (to the extent such concept applies to such
entity) in good standing as a domestic corporation, partnership or limited
liability company in its jurisdiction of incorporation or organization, as the
case may be, and maintain all requisite authority to conduct its business in
each jurisdiction in which its business is conducted except where failure to
maintain such authority could not individually or in the aggregate reasonably be
expected to have a Material Adverse Effect.

                                      -47-

<PAGE>   55

         6.5. Taxes. The Parent Borrower will, and will cause each Subsidiary
to, timely file complete and correct United States federal and applicable
foreign, state and local tax returns required by law and pay when due all taxes,
assessments and governmental charges and levies upon it or its income, profits
or Property, except (i) those which are being contested in good faith by
appropriate proceedings and with respect to which adequate reserves have been
set aside in accordance with Agreement Accounting Principles or (ii) where
failure to file or pay could not individually or in the aggregate reasonably be
expected to have a Material Adverse Effect. At any time that any Subsidiary of
the Parent Borrower is organized as a limited liability company, each such
limited liability company will qualify for partnership tax treatment under
United States federal tax law.

         6.6. Insurance. The Parent Borrower will, and will cause each
Subsidiary to, maintain with financially sound and reputable insurance companies
insurance on all their Property in such amounts and covering such risks as is
consistent with sound business practice, and the Parent Borrower will furnish to
any Lender upon request full information as to the insurance carried.

         6.7. Compliance with Laws. The Parent Borrower will, and will cause
each Subsidiary to, comply with all laws, rules, regulations, orders, writs,
judgments, injunctions, decrees or awards to which it may be subject including,
without limitation, all Environmental Laws other than such noncompliance which
could not individually or in the aggregate reasonably be expected to have a
Material Adverse Effect.

         6.8. Maintenance of Properties. The Parent Borrower will, and will
cause each Subsidiary to, do all things necessary to maintain, preserve, protect
and keep its Property in good repair, working order and condition, and make all
necessary and proper repairs, renewals and replacements so that its business
carried on in connection therewith may be properly conducted at all times except
where such failure could not individually or in the aggregate reasonably be
expected to have a Material Adverse Effect.

         6.9. Inspection. The Parent Borrower will, and will cause each
Subsidiary to, permit the Administrative Agent and the Lenders, by their
respective representatives and agents, to inspect any of the Property, books and
financial records of the Parent Borrower and each Subsidiary, to examine and
make copies of the books of accounts and other financial records of the Parent
Borrower and each Subsidiary, and to discuss the affairs, finances and accounts
of the Parent Borrower and each Subsidiary with, and to be advised as to the
same by, their respective officers at such reasonable times and intervals as the
Administrative Agent or any Lender may designate.

         6.10. Dividends. The Parent Borrower will not, nor will it permit any
Subsidiary to, declare or pay any dividends or make any distributions on its
capital stock (other than dividends payable in its own capital stock) or redeem,
repurchase or otherwise acquire or retire any of its capital stock at any time
outstanding, except that (i) any Subsidiary may declare and pay dividends or
make distributions to the Parent Borrower or to a Wholly-Owned Subsidiary and
(ii) when no Default exists or will result therefrom, the Parent Borrower may
pay dividends on its capital stock during each fiscal year in an amount not to
exceed in the aggregate $5,000,000.

                                      -48-

<PAGE>   56

         6.11. Indebtedness. The Parent Borrower will not, nor will it permit
any Subsidiary to, create, incur or suffer to exist any Indebtedness, except:

                  (i) The Loans and the Reimbursement Obligations.

                  (ii) Indebtedness existing on the date hereof and described in
         Schedule 2.

                  (iii) Indebtedness arising under Rate Management Obligations
         having a Net Mark-to-Market Exposure not exceeding $15,000,000.

                  (iv) Indebtedness arising in connection with transactions
         permitted by Section 6.13(iii).

                  (v) Indebtedness arising in connection with the sale or
         transfer of an interest in trade receivables of the Parent Borrower or
         any Subsidiary on a limited recourse basis not exceeding in the
         aggregate $100,000,000 at any one time outstanding.

                  (vi) With respect to Subsidiary Borrower only, the Target
         Senior Subordinated Notes.

                  (vii) Annual payments under Operating Leases not to exceed in
         the aggregate $5,000,000 during any fiscal year.

                  (viii) Indebtedness in addition to that specifically described
         in clauses (i) through (vii) of this Section 6.11 incurred when no
         Default exists or will result therefrom which in the aggregate does not
         exceed $15,000,000 at any time outstanding.

                  (ix) So long as no Default has occurred and is continuing or
         would result therefrom, Indebtedness representing intercompany advances
         or payables permitted under Section 6.14(iv)

                  (x) So long as no Default has occurred and is continuing or
         would result therefrom, any guarantee by Parent Borrower or its
         Subsidiaries (other than Subsidiary Borrower and its Subsidiaries among
         whom any such guarantee shall be permitted only upon payment in full of
         the Target Senior Subordinated Notes) of Indebtedness of a Subsidiary
         otherwise permitted under this Section 6.11.

         6.12. Merger. The Parent Borrower will not, nor will it permit any
Subsidiary to, merge or consolidate with or into any other Person, except (i)
that a Subsidiary may merge into the Parent Borrower or a Subsidiary (subject to
compliance with Section 6.25) and (ii) in connection with Permitted
Acquisitions.

         6.13. Sale of Assets. The Parent Borrower will not, nor will it permit
any Subsidiary to, lease, sell or otherwise dispose of its Property to any other
Person, except:

         (i) Sales of inventory in the ordinary course of business.

                                      -49-

<PAGE>   57

                  (ii) Leases, sales or other dispositions of its Property that,
         together with all other Property of the Parent Borrower and its
         Subsidiaries previously leased, sold or disposed of (other than
         inventory in the ordinary course of business) as permitted by this
         Section during the twelve-month period ending with the month in which
         any such lease, sale or other disposition occurs, do not constitute a
         Substantial Portion of the Property of the Parent Borrower and its
         Subsidiaries.

                  (iii) Any transfer of an interest in accounts or notes
         receivable on a limited recourse basis, provided that such transfer
         qualifies as a sale under Agreement Accounting Principles and that the
         amount of such financing does not exceed $100,000,000 at any one time
         outstanding.

         6.14. Investments and Acquisitions. The Parent Borrower will not, nor
will it permit any Subsidiary to, make or suffer to exist any Investments
(including without limitation, loans and advances to, and other Investments in,
Subsidiaries), or commitments therefor, or to create any Subsidiary or to become
or remain a partner in any partnership or joint venture, or to make any
Acquisition of any Person, except:

                  (i) Cash Equivalent Investments.

                  (ii) Existing Investments in Subsidiaries and other
         Investments in existence on the date hereof and described in
         Schedule 1.

                  (iii) Permitted Acquisitions.

                  (iv) Other Investments in Subsidiaries (subject to compliance
         with Section 6.25) provided that no additional Investments may be made
         in Subsidiary Borrower or its Subsidiaries until payment in full of the
         Target Senior Subordinated Notes.

                  (v) Investments comprised of instruments received in
         connection with the workout or other restructure in the ordinary course
         of business of amounts payable to Parent Borrower or a Subsidiary.

         6.15. Liens. The Parent Borrower will not, nor will it permit any
Subsidiary to, create, incur, or suffer to exist any Lien in, of or on the
Property of the Parent Borrower or any of its Subsidiaries, except:

                  (i) Liens for taxes, assessments or governmental charges or
         levies on its Property if the same shall not at the time be delinquent
         or thereafter can be paid without penalty, or are being contested in
         good faith and by appropriate proceedings and for which adequate
         reserves in accordance with Agreement Accounting Principles shall have
         been set aside on its books.

                  (ii) Liens imposed by law, such as carriers', landlords',
         warehousemen's and mechanics' liens and other similar liens arising in
         the ordinary course of business which secure payment of

                                      -50-

<PAGE>   58

         obligations not more than 60 days past due or which are being contested
         in good faith by appropriate proceedings and for which adequate
         reserves shall have been set aside on its books.

                  (iii) Liens arising out of pledges or deposits under worker's
         compensation laws, unemployment insurance, old age pensions, or other
         social security or retirement benefits, or similar legislation.

                  (iv) Utility easements, building restrictions and such other
         encumbrances or charges against real property as are of a nature
         generally existing with respect to properties of a similar character
         and which do not in any material way affect the marketability of the
         same or interfere with the use thereof in the business of the Parent
         Borrower or its Subsidiaries.

                  (v) Liens existing on the date hereof and described in
         Schedule 2.

                  (vi) Liens incurred in connection with any transfer of an
         interest in accounts or notes receivable which is permitted pursuant to
         Section 6.13(iii).

                  (vii) Liens securing Indebtedness permitted to be incurred
         under Section 6.11 which attach solely to the assets purchased with the
         proceeds of such Indebtedness.

         6.16. Capital Expenditures. The Parent Borrower will not, nor will it
permit any Subsidiary to, expend, or be committed to expend, in excess of
$50,000,000 for Capital Expenditures during any one fiscal year on a
non-cumulative basis in the aggregate for the Parent Borrower and its
Subsidiaries.

         6.17. Affiliates. The Parent Borrower will not, and will not permit any
Subsidiary to, enter into any transaction (including, without limitation, the
purchase or sale of any Property or service) with, or make any payment or
transfer to, any Affiliate except (i) in the ordinary course of business and
pursuant to the reasonable requirements of the Parent Borrower's or such
Subsidiary's business and upon fair and reasonable terms no less favorable to
the Parent Borrower or such Subsidiary than the Parent Borrower or such
Subsidiary would obtain in a comparable arms-length transaction, (ii)
transactions among the Parent Borrower and its Subsidiaries (other than
Subsidiary Borrower and its Subsidiaries, among whom such transactions shall be
permitted only upon payment in full of the Target Senior Subordinated Notes),
and (iii) immaterial transactions existing as of the date hereof.

         6.18. Sale and Leaseback Transactions and other Off-Balance Sheet
Liabilities. The Parent Borrower will not, nor will it permit any Subsidiary to,
enter into or suffer to exist any (i) Sale and Leaseback Transaction or (ii) any
other transaction pursuant to which it incurs or has incurred Off-Balance Sheet
Liabilities, except for Rate Management Obligations permitted to be incurred
under the terms of Section 6.11(iii) or a transaction permitted under Section
6.13(iii).

         6.19. Contingent Obligations. The Parent Borrower will not, nor will it
permit any Subsidiary to, make or suffer to exist any Contingent Obligation
(including, without limitation, any Contingent Obligation with respect to the
obligations of a Subsidiary who is not a Guarantor), except (i) by

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<PAGE>   59

endorsement of instruments for deposit or collection in the ordinary course of
business, (ii) the Reimbursement Obligations, (iii) the Guaranty, (iv) as
permitted by Section 6.11(viii) or 6.11(x) and (v) Contingent Obligations which
constitute obligations existing as of the date hereof of any Borrower or any
Subsidiary as a general partner of a partnership with respect to the liabilities
of such partnership.

         6.20. Letters of Credit. The Parent Borrower will not, nor will it
permit any Subsidiary to, apply for or become liable upon or in respect of any
Letter of Credit other than Facility LCs.

         6.21. Financial Contracts. The Parent Borrower will not, nor will it
permit any Subsidiary to, enter into or remain liable upon any Financial
Contract, except Rate Management Obligations permitted under Section 6.11(iii).

         6.22. Financial Covenants.

                  6.22.1. Interest Coverage Ratio. The Parent Borrower will not
         permit the ratio, determined as of the end of each of its fiscal
         quarters for the then most-recently ended four fiscal quarters, of (i)
         Consolidated EBIT to (ii) Consolidated Interest Expense to be less than
         3.0 to 1.0.

                  6.22.2. Leverage Ratio. The Parent Borrower will not permit
         the ratio, determined as of the end of each of its fiscal quarters, of
         (i) Consolidated Funded Indebtedness to (ii) Consolidated EBITDA for
         the then most-recently ended four fiscal quarters to be greater than
         2.50 to 1.00.

                  6.22.3. Minimum Tangible Net Worth. As of December 31, 2000,
         the Parent Borrower will at all times maintain Consolidated Tangible
         Net Worth of not less than $325,000,000 and for the last day of each
         fiscal quarter thereafter, not less than the sum of (i) the minimum
         Consolidated Tangible Net Worth required for the prior fiscal quarter,
         plus (ii) 50% of the Consolidated Net Income (not less than $0.00) for
         the fiscal quarter then ended, plus (iii) 100% of the Net Cash Proceeds
         of any equity issuances (excluding issuances described in clause (a) of
         the first sentence of Section 2.25 and issuances solely to finance
         Permitted Acquisitions) by the Parent Borrower or any Subsidiary for
         the fiscal quarter then ended.

         6.23. Lines of Business. The Parent Borrower will not, nor will it
permit any Subsidiary to, engage in any line or lines of business activity other
than the businesses in which they are engaged on the date hereof or lines of
business complementary or reasonably related to the construction products or
building materials industry.

         6.24. Prepayment of Debt. When a Default has occurred and is continuing
or will result therefrom, the Parent Borrower will not, and will not permit any
Subsidiary to, prepay any Indebtedness, except the Obligations.

         6.25. Future Subsidiaries. The Parent Borrower shall cause each Person
that becomes a Significant Subsidiary after the date of the initial Credit
Extension to promptly execute such documents, instruments, and agreements as the
Administrative Agent deems necessary or appropriate, in form and

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<PAGE>   60

substance satisfactory to the Administrative Agent, to cause such Subsidiary to
become a guarantor of the Obligations on a basis substantially the same as the
existing Guarantors.

         6.26. Prohibition on Granting Negative Pledges. Except for this
Agreement and Liens permitted by Section 6.15 to the extent such Liens encumber
only the assets so financed, the Parent Borrower will not and will not permit
any Subsidiary to enter into or become bound by any agreement, understanding or
arrangement (other than this Agreement) that limits, restricts or impairs in any
way the right of any of such Person to create, assume or suffer to exist any
Lien on any of such Person's Properties or assets in favor of the Administrative
Agent (or any successor Administrative Agent) for the benefit of the Lenders.

         6.27. Prohibition on Granting Restrictions on Distributions. Except for
this Agreement, the Parent Borrower will not enter into or become bound by any
agreement, arrangement or understanding or permit its Subsidiaries to do so
(including, without limitation, their respective articles of incorporation,
bylaws or other charter documents) that limits, restricts, subordinates or
impairs in any way the right or ability of any of the Subsidiaries to make
dividends or distributions to or Investments in the Parent Borrower or to repay
any Indebtedness or obligation owed to the Parent Borrower.

         6.28. Prohibition on Synthetic Leases. Parent Borrower will not at any
time become or be obligated as lessee or borrower under any Synthetic Lease nor
will it permit any Subsidiary to do so.

         6.29. Amendments to Indebtedness. The Parent Borrower will not, and
will not permit any Subsidiary to, make any amendment or modification to the
Indenture or any indenture, note or other agreement evidencing or governing any
Subordinated Indebtedness or the Indebtedness owed by Subsidiary Guarantor or
its Subsidiaries to Parent Guarantor or its other Subsidiaries, or directly or
indirectly voluntarily prepay, defease or in substance defease, purchase,
redeem, retire or otherwise acquire, any Subordinated Indebtedness or the
Indebtedness owed by Subsidiary Guarantor or its Subsidiaries to Parent
Guarantor or its other Subsidiaries, other than prepayment of the Target Senior
Subordinated Notes permitted by Section 6.24 and so long as no Default has
occurred and is continuing or would result therefrom, the payment of
intercompany Indebtedness.

         6.30. Joinder of Subsidiary Borrower. Upon the payment in full of the
Indebtedness evidenced by Target Senior Subordinated Notes, the Subsidiary
Borrower shall (a) promptly notify the Administrative Agent in writing that such
Indebtedness has been paid in full and all agreements and other documents
executed in connection therewith (including the Indenture and the Target Senior
Subordinated Notes) have been terminated or that all measures necessary to
defease the remaining Target Senior Subordinated Notes pursuant to the Indenture
shall have been completed, (b) have the right to request that the Revolving
Subfacility be combined with the balance of the Revolving Credit Facility into
one revolving loan facility, (c) execute a joinder agreement or similar
agreement, in form and substance satisfactory to the Administrative Agent,
whereby the Subsidiary Borrower and its Significant Subsidiaries will agree to
guarantee all Obligations which are not Joint and Several Obligations and (d)
execute such amendments and other documentation as reasonably requested by the
Administrative Agent in order to combine the facilities in accordance with
subsection (b), such amendments and other documentation to be in form and
substance satisfactory to each of the parties hereto.

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<PAGE>   61

         6.31. Target Senior Subordinated Notes. Within ten (10) days after the
date hereof, the Subsidiary Borrower shall deliver to the Administrative Agent
evidence that it has assumed the obligations owing under the Target Senior
Subordinated Notes and that no default then exists thereunder. Neither the
Subsidiary Borrower nor any of its Subsidiaries shall incur any Indebtedness nor
take any other action which could reasonably be expected to cause a default
under the Target Senior Subordinated Notes.

                                   ARTICLE VII

                                    DEFAULTS

         The occurrence of any one or more of the following events shall
constitute a Default:

         7.1. Any representation or warranty made or deemed made by or on behalf
of the Parent Borrower or any of its Subsidiaries to the Lenders or the
Administrative Agent under or in connection with this Agreement, any Credit
Extension, or any certificate or information delivered in connection with this
Agreement or any other Loan Document shall be materially false on the date as of
which made.

         7.2. Nonpayment of principal of any Loan when due, nonpayment of any
Reimbursement Obligation within one Business Day after the same becomes due, or
nonpayment of interest upon any Loan or of any commitment fee, LC Fee or other
obligations under any of the Loan Documents within five days after the same
becomes due.

         7.3. The breach by the Parent Borrower of any of the terms or
provisions of Section 6.1, 6.2, 6.10, 6.11, 6.12, 6.13, 6.14, 6.15, 6.16, 6.18,
6.19, 6.20, 6.21, 6.22, 6.23, 6.24, 6.25, 6.26, 6.27, 6.28, 6.29, or 6.30.

         7.4. The breach by the Parent Borrower (other than a breach which
constitutes a Default under another Section of this Article VII) of any of the
terms or provisions of this Agreement which is not remedied within 15 days after
written notice from the Administrative Agent or any Lender.

         7.5. Failure of the Parent Borrower or any of its Subsidiaries to pay
when due (beyond the applicable grace period with respect thereto, if any) any
Indebtedness aggregating in excess of $2,500,000 ("Material Indebtedness"); or
the default by the Parent Borrower or any of its Subsidiaries in the performance
(beyond the applicable grace period with respect thereto, if any) of any term,
provision or condition contained in any agreement under which any such Material
Indebtedness was created or is governed, or any other event shall occur or
condition exist, the effect of which default or event is to cause, or to permit
the holder or holders of such Material Indebtedness to cause, such Material
Indebtedness to become due prior to its stated maturity; or any Material
Indebtedness of the Parent Borrower or any of its Subsidiaries shall be declared
to be due and payable or required to be prepaid or repurchased (other than by a
regularly scheduled payment) prior to the stated maturity thereof; or the Parent
Borrower or any of its Subsidiaries shall not pay, or admit in writing its
inability to pay, its debts generally as they become due.

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<PAGE>   62

         7.6. The Parent Borrower or any of its Subsidiaries shall (i) have an
order for relief entered with respect to it under the Federal bankruptcy laws as
now or hereafter in effect, (ii) make an assignment for the benefit of
creditors, (iii) apply for, seek, consent to, or acquiesce in, the appointment
of a receiver, custodian, trustee, examiner, liquidator or similar official for
it or any Substantial Portion of its Property, (iv) institute any proceeding
seeking an order for relief under the Federal bankruptcy laws as now or
hereafter in effect or seeking to adjudicate it a bankrupt or insolvent, or
seeking dissolution, winding up, liquidation, reorganization, arrangement,
adjustment or composition of it or its debts under any law relating to
bankruptcy, insolvency or reorganization or relief of debtors or fail to file an
answer or other pleading denying the material allegations of any such proceeding
filed against it, (v) take any corporate or partnership action to authorize or
effect any of the foregoing actions set forth in this Section 7.6 or (vi) fail
to contest in good faith any appointment or proceeding described in Section 7.7.

         7.7. Without the application, approval or consent of the Parent
Borrower or any of its Subsidiaries, a receiver, trustee, examiner, liquidator
or similar official shall be appointed for the Parent Borrower or any of its
Subsidiaries or any Substantial Portion of its Property, or a proceeding
described in Section 7.6(iv) shall be instituted against the Parent Borrower or
any of its Subsidiaries and such appointment continues undischarged or such
proceeding continues undismissed or unstayed for a period of 60 consecutive
days.

         7.8. Any court, government or governmental agency shall condemn, seize
or otherwise appropriate, or take custody or control of, all or any portion of
the Property of the Parent Borrower or any Subsidiary which, when taken together
with all other Property of the Parent Borrower or such Subsidiary so condemned,
seized, appropriated, or taken custody or control of, during the twelve-month
period ending with the month in which any such action occurs, constitutes a
Substantial Portion.

         7.9. The Parent Borrower or any of its Subsidiaries shall fail within
60 days to pay, bond or otherwise discharge one or more (i) judgments or orders
for the payment of money in excess of $2,500,000 (or the equivalent thereof in
currencies other than U.S. Dollars) in the aggregate, or (ii) nonmonetary
judgments or orders which, individually or in the aggregate, could reasonably be
expected to have a Material Adverse Effect, which judgment(s), in any such case,
is/are not stayed on appeal or otherwise being appropriately contested in good
faith.

         7.10. The Parent Borrower or any member of the Controlled Group has
incurred in the aggregate Unfunded Liabilities of all Single Employer Plans by
an amount which could reasonably be expected to have a Material Adverse Effect
or any Reportable Event shall occur in connection with any Plan which could
reasonably be expected to have a Material Adverse Effect.

         7.11. The Parent Borrower or any other member of the Controlled Group
shall have been notified by the sponsor of a Multiemployer Plan that it has
incurred withdrawal liability to such Multiemployer Plan in an amount which,
when aggregated with all other amounts required to be paid to Multiemployer
Plans by the Parent Borrower or any other member of the Controlled Group as
withdrawal liability (determined as of the date of such notification), could
reasonably be expected to have a Material Adverse Effect.

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<PAGE>   63

         7.12. The Parent Borrower or any other member of the Controlled Group
shall have been notified by the sponsor of a Multiemployer Plan that such
Multiemployer Plan is in reorganization or is being terminated, within the
meaning of Title IV of ERISA, if as a result of such reorganization or
termination the aggregate annual contributions of the Parent Borrower and the
other members of the Controlled Group (taken as a whole) to all Multiemployer
Plans which are then in reorganization or being terminated have been or will be
increased over the amounts contributed to such Multiemployer Plans for the
respective plan years of each such Multiemployer Plan immediately preceding the
plan year in which the reorganization or termination occurs by an amount which
could reasonably be expected to have a Material Adverse Effect.

         7.13. The Parent Borrower or any of its Subsidiaries shall (i) be the
subject of any proceeding or investigation pertaining to the release by the
Parent Borrower, any of its Subsidiaries or any other Person of any toxic or
hazardous waste or substance into the environment, or (ii) violate any
Environmental Law, which, in the case of an event described in clause (i) or
clause (ii), could reasonably be expected to have a Material Adverse Effect.

         7.14. Any Change in Control shall occur.

         7.15. Any Guaranty shall fail to remain in full force or effect or any
action shall be taken to discontinue or to assert the invalidity or
unenforceability of any Guaranty, or any Guarantor shall fail to comply with any
of the terms or provisions of any Guaranty to which it is a party, or any
Guarantor shall deny that it has any further liability under any Guaranty to
which it is a party, or shall give notice to such effect.

         7.16. The representations and warranties set forth in Section 5.15
("Plan Assets; Prohibited Transactions") shall at any time not be true and
correct.

                                  ARTICLE VIII

                 ACCELERATION, WAIVERS, AMENDMENTS AND REMEDIES

         8.1. Acceleration; Facility LC Collateral Account.

                  (i) If any Default described in Section 7.6 or 7.7 occurs, the
         obligations of the Lenders to make Loans hereunder and the obligation
         and power of the LC Issuer to issue Facility LCs shall automatically
         terminate and the Obligations shall immediately become due and payable
         without any election or action on the part of the Administrative Agent,
         the LC Issuer or any Lender and the Parent Borrower will be and become
         thereby unconditionally obligated, without any further notice, act or
         demand, to pay to the Administrative Agent an amount in immediately
         available funds, which funds shall be held in the Facility LC
         Collateral Account, equal to the difference of (x) the amount of LC
         Obligations at such time, less (y) the amount on deposit in the
         Facility LC Collateral Account at such time which is free and clear of
         all rights and claims of third

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<PAGE>   64

         parties and has not been applied against the Obligations (such
         difference, the "Collateral Shortfall Amount"). If any other Default
         occurs, the Required Lenders (or the Administrative Agent with the
         consent of the Required Lenders) may (a) terminate or suspend the
         obligations of the Lenders to make Loans hereunder and the obligation
         and power of the LC Issuer to issue Facility LCs, or declare the
         Obligations to be due and payable, or both, whereupon the Obligations
         shall become immediately due and payable, without presentment, demand,
         protest or notice of any kind, all of which the Parent Borrower hereby
         expressly waives, and (b) upon notice to the Parent Borrower and in
         addition to the continuing right to demand payment of all amounts
         payable under this Agreement, make demand on the Parent Borrower to
         pay, and the Parent Borrower will, forthwith upon such demand and
         without any further notice or act, pay to the Administrative Agent the
         Collateral Shortfall Amount, which funds shall be deposited in the
         Facility LC Collateral Account.

                  (ii) If at any time while any Default is continuing, the
         Administrative Agent determines that the Collateral Shortfall Amount at
         such time is greater than zero, the Administrative Agent may make
         demand on the Parent Borrower to pay, and the Parent Borrower will,
         forthwith upon such demand and without any further notice or act, pay
         to the Administrative Agent the Collateral Shortfall Amount, which
         funds shall be deposited in the Facility LC Collateral Account.

                  (iii) The Administrative Agent may at any time or from time to
         time after funds are deposited in the Facility LC Collateral Account,
         apply such funds to the payment of the Obligations and any other
         amounts as shall from time to time have become due and payable by the
         Parent Borrower to the Lenders or the LC Issuer under the Loan
         Documents.

                  (iv) At any time while any Default is continuing, neither the
         Parent Borrower nor any Person claiming on behalf of or through the
         Parent Borrower shall have any right to withdraw any of the funds held
         in the Facility LC Collateral Account. After all of the Obligations
         have been indefeasibly paid in full and the Aggregate Commitment has
         been terminated, any funds remaining in the Facility LC Collateral
         Account shall be returned by the Administrative Agent to the Parent
         Borrower or paid to whomever may be legally entitled thereto at such
         time.

                  (v) If, within 30 days after acceleration of the maturity of
         the Obligations or termination of the obligations of the Lenders to
         make Loans and the obligation and power of the LC Issuer to issue
         Facility LCs hereunder as a result of any Default (other than any
         Default as described in Section 7.6 or 7.7) and before any judgment or
         decree for the payment of the Obligations due shall have been obtained
         or entered, the Required Lenders (in their sole discretion) shall so
         direct, the Administrative Agent shall, by notice to the Borrowers,
         rescind and annul such acceleration and/or termination.

         8.2. Amendments. Subject to the provisions of this Article VIII, the
Required Lenders (or the Administrative Agent with the consent in writing of the
Required Lenders) and the Borrowers may enter into agreements supplemental
hereto for the purpose of adding or modifying any provisions to the Loan
Documents or changing in any manner the rights of the Lenders or the Borrowers
hereunder or waiving

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<PAGE>   65

any Default hereunder; provided, however, that no such supplemental agreement
shall, without the consent of all of the Lenders:

                  (i) Extend the final maturity of any Loan, or extend the
         expiry date of any Facility LC to a date after the Facility Termination
         Date or postpone any regularly scheduled payment of principal of any
         Loan or forgive all or any portion of the principal amount thereof or
         any Reimbursement Obligation related thereto, or reduce the rate or the
         unused fee due under Section 2.5 or extend the time of payment of
         interest or fees thereon or Reimbursement Obligations related thereto.

                  (ii) Reduce the percentage specified in the definition of
         Required Lenders.

                  (iii) Extend the Facility Termination Date, or reduce the
         amount or extend the payment date for, the mandatory payments required
         under Section 2.2, or increase the amount of the Aggregate Commitment,
         the Commitment of any Lender hereunder or the commitment to issue
         Facility LCs, or permit either Borrower to assign its rights under this
         Agreement.

                  (iv) Amend this Section 8.2.

                  (v) Release any Guarantor except where the sale of all or
         substantially all of the assets or equity interests in a Guarantor is
         otherwise permitted hereunder, in which event the Administrative Agent
         shall execute and deliver to Parent Borrower such release upon such
         sale.

No amendment of any provision of this Agreement relating to the Administrative
Agent shall be effective without the written consent of the Administrative
Agent, and no amendment of any provision relating to the LC Issuer shall be
effective without the written consent of the LC Issuer. The Administrative Agent
may waive payment of the fee required under Section 12.3.2 without obtaining the
consent of any other party to this Agreement.

         8.3. Preservation of Rights. No delay or omission of the Lenders, the
LC Issuer or the Administrative Agent to exercise any right under the Loan
Documents shall impair such right or be construed to be a waiver of any Default
or an acquiescence therein, and the making of a Credit Extension notwithstanding
the existence of a Default or the inability of the Borrowers to satisfy the
conditions precedent to such Credit Extension shall not constitute any waiver or
acquiescence. Any single or partial exercise of any such right shall not
preclude other or further exercise thereof or the exercise of any other right,
and no waiver, amendment or other variation of the terms, conditions or
provisions of the Loan Documents whatsoever shall be valid unless in writing
signed by the Lenders required pursuant to Section 8.2, and then only to the
extent in such writing specifically set forth. All remedies contained in the
Loan Documents or by law afforded shall be cumulative and all shall be available
to the Administrative Agent, the LC Issuer and the Lenders until the Obligations
have been paid in full.

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<PAGE>   66

                                   ARTICLE IX

                               GENERAL PROVISIONS

         9.1. Survival of Representations. All representations and warranties of
the Borrowers contained in this Agreement shall survive the making of the Credit
Extensions herein contemplated.

         9.2. Governmental Regulation. Anything contained in this Agreement to
the contrary notwithstanding, neither the LC Issuer nor any Lender shall be
obligated to extend credit to either Borrower in violation of any limitation or
prohibition provided by any applicable statute or regulation.

         9.3. Headings. Section headings in the Loan Documents are for
convenience of reference only, and shall not govern the interpretation of any of
the provisions of the Loan Documents.

         9.4. ENTIRE AGREEMENT. THE LOAN DOCUMENTS EMBODY THE ENTIRE AGREEMENT
AND UNDERSTANDING AMONG THE BORROWERS, THE ADMINISTRATIVE AGENT, THE LC ISSUER
AND THE LENDERS AND SUPERSEDE ALL PRIOR AGREEMENTS AND UNDERSTANDINGS AMONG THE
BORROWERS, THE ADMINISTRATIVE AGENT, THE LC ISSUER AND THE LENDERS RELATING TO
THE SUBJECT MATTER THEREOF OTHER THAN THE FEE LETTER DESCRIBED IN SECTION 10.13.
THE LOAN DOCUMENTS MAY NOT BE CONTRADICTED OR VARIED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OR DISCUSSIONS OF THE PARTIES
HERETO. THERE ARE NO ORAL AGREEMENTS AMONG THE PARTIES HERETO.

         9.5. Several Obligations; Benefits of this Agreement. The respective
obligations of the Lenders hereunder are several and not joint and no Lender
shall be the partner or agent of any other (except to the extent to which the
Administrative Agent is authorized to act as such). The failure of any Lender to
perform any of its obligations hereunder shall not relieve any other Lender from
any of its obligations hereunder. This Agreement shall not be construed so as to
confer any right or benefit upon any Person other than the parties to this
Agreement and their respective successors and assigns, provided, however, that
the parties hereto expressly agree that the Arranger shall enjoy the benefits of
the provisions of Sections 9.6, 9.10 and 10.11 to the extent specifically set
forth therein and shall have the right to enforce such provisions on its own
behalf and in its own name to the same extent as if it were a party to this
Agreement.

         9.6. Expenses; Indemnification.

                  (i) The Borrowers shall reimburse the Administrative Agent and
         the Arranger for any costs, internal charges for fees and time charges
         of attorneys who are employees of the Administrative Agent, the
         Arranger, the LC Issuer and out-of-pocket expenses (including
         attorneys' fees and time charges of attorneys for the Administrative
         Agent) paid or incurred by the Administrative Agent or the Arranger in
         connection with the preparation, negotiation, execution, delivery,
         syndication, review, amendment, modification, and administration of the
         Loan

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<PAGE>   67

         Documents. The Borrowers also agree to reimburse the Administrative
         Agent, the Arranger, the LC Issuer and the Lenders for any costs,
         internal charges for fees and time charges of attorneys who are
         employees of the Administrative Agent, the Arranger, the LC Issuer, the
         Lenders and out-of-pocket expenses (including attorneys' fees and time
         charges of attorneys for the Administrative Agent, the Arranger, the LC
         Issuer and the Lenders) paid or incurred by the Administrative Agent,
         the Arranger, the LC Issuer or any Lender in connection with the
         collection and enforcement of the Loan Documents. Expenses being
         reimbursed by the Borrowers under this Section include, without
         limitation, costs and expenses incurred in connection with the Reports
         described in the following sentence. The Borrowers acknowledge that
         from time to time Bank One may prepare and may distribute to the
         Lenders (but shall have no obligation or duty to prepare or to
         distribute to the Lenders) certain audit reports (the "Reports")
         pertaining to the Borrowers' assets for internal use by Bank One from
         information furnished to it by or on behalf of the Borrowers, after
         Bank One has exercised its rights of inspection pursuant to this
         Agreement.

                  (ii) THE BORROWERS HEREBY FURTHER AGREE TO INDEMNIFY THE
         ADMINISTRATIVE AGENT, THE ARRANGER, THE LC ISSUER AND EACH LENDER, ITS
         DIRECTORS, OFFICERS AND EMPLOYEES AGAINST ALL LOSSES, CLAIMS, DAMAGES,
         PENALTIES, JUDGMENTS, LIABILITIES AND EXPENSES (INCLUDING, WITHOUT
         LIMITATION, ALL EXPENSES OF LITIGATION OR PREPARATION THEREFOR WHETHER
         OR NOT THE ADMINISTRATIVE AGENT, THE ARRANGER, THE LC ISSUER OR ANY
         LENDER IS A PARTY THERETO) WHICH ANY OF THEM MAY PAY OR INCUR ARISING
         OUT OF OR RELATING TO THIS AGREEMENT, THE OTHER LOAN DOCUMENTS, THE
         TRANSACTIONS CONTEMPLATED HEREBY OR THE DIRECT OR INDIRECT APPLICATION
         OR PROPOSED APPLICATION OF THE PROCEEDS OF ANY CREDIT EXTENSION
         HEREUNDER EXCEPT TO THE EXTENT THAT THEY ARE DETERMINED IN A FINAL
         NON-APPEALABLE JUDGMENT BY A COURT OF COMPETENT JURISDICTION TO HAVE
         RESULTED FROM THE GROSS NEGLIGENCE, BAD FAITH OR WILLFUL MISCONDUCT OF
         THE PARTY SEEKING INDEMNIFICATION; PROVIDED HOWEVER, THAT IN NO EVENT
         SHALL THE BORROWERS BE LIABLE UNDER THIS SECTION 9.6 FOR ANY LOST
         PROFITS OR FOR ANY SPECIAL, INDIRECT, CONSEQUENTIAL OR PUNITIVE
         DAMAGES. THE OBLIGATIONS OF THE BORROWERS UNDER THIS SECTION 9.6 SHALL
         SURVIVE THE TERMINATION OF THIS AGREEMENT.

         9.7. Numbers of Documents. All statements, notices, closing documents,
and requests hereunder shall be furnished to the Administrative Agent with
sufficient counterparts so that the Administrative Agent may furnish one to each
of the Lenders.

         9.8. Accounting. Except as provided to the contrary herein, all
accounting terms used herein shall be interpreted and all accounting
determinations hereunder shall be made in accordance with Agreement Accounting
Principles.

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<PAGE>   68

         9.9. Severability of Provisions. Any provision in any Loan Document
that is held to be inoperative, unenforceable, or invalid in any jurisdiction
shall, as to that jurisdiction, be inoperative, unenforceable, or invalid
without affecting the remaining provisions in that jurisdiction or the
operation, enforceability, or validity of that provision in any other
jurisdiction, and to this end the provisions of all Loan Documents are declared
to be severable.

         9.10. Nonliability of Lenders. The relationship between the Borrowers
on the one hand and the Lenders, the LC Issuer and the Administrative Agent on
the other hand shall be solely that of borrower and lender. Neither the
Administrative Agent, the Arranger, the LC Issuer nor any Lender shall have any
fiduciary responsibilities to the Borrowers. Neither the Administrative Agent,
the Arranger, the LC Issuer nor any Lender undertakes any responsibility to the
Borrowers to review or inform the Borrowers of any matter in connection with any
phase of the Borrowers' business or operations. Each Borrower agrees that
neither the Administrative Agent, the Arranger, the LC Issuer nor any Lender
shall have liability to the Borrowers (whether sounding in tort, contract or
otherwise) for losses suffered by the Borrowers in connection with, arising out
of, or in any way related to, the transactions contemplated and the relationship
established by the Loan Documents, or any act, omission or event occurring in
connection therewith, unless it is determined in a final non-appealable judgment
by a court of competent jurisdiction that such losses resulted from the gross
negligence, bad faith or willful misconduct of the party from which recovery is
sought. Neither the Administrative Agent, the Arranger, the LC Issuer nor any
Lender shall have any liability with respect to, and each Borrower hereby
waives, releases and agrees not to sue for, any special, indirect or
consequential damages suffered by the Borrowers in connection with, arising out
of, or in any way related to the Loan Documents or the transactions contemplated
thereby.

         9.11. Confidentiality. Each Lender agrees to hold any confidential
information which it may receive from the Borrowers pursuant to this Agreement
in confidence, except for disclosure (i) to its Affiliates and to other Lenders
and their respective Affiliates, (ii) to legal counsel, accountants, and other
professional advisors to such Lender or to a Transferee, (iii) to regulatory
officials, (iv) to any Person as requested pursuant to or as required by law,
regulation, or legal process, (v) to any Person in connection with any legal
proceeding to which such Lender is a party, (vi) to such Lender's direct or
indirect contractual counterparties in swap agreements or to legal counsel,
accountants and other professional advisors to such counterparties, and (vii)
permitted by Section 12.4.

         9.12. Nonreliance. Each Lender hereby represents that it is not relying
on or looking to any margin stock (as defined in Regulation U of the Board of
Governors of the Federal Reserve System) for the repayment of the Credit
Extensions provided for herein.

         9.13. Disclosure. Each Borrower and each Lender hereby acknowledge and
agree that Bank One and/or its Affiliates from time to time may hold investments
in, make other loans to, or have other relationships with the Parent Borrower
and its Affiliates.

         9.14. Maximum Interest Rate. No provision of this Agreement or of any
other Loan Document shall require the payment or the collection of interest in
excess of the maximum amount permitted by applicable law. If any excess of
interest in such respect is hereby provided for, or shall be adjudicated to

                                      -61-

<PAGE>   69

be so provided, in any Loan Document or otherwise in connection with this loan
transaction, the provisions of this Section shall govern and prevail and neither
Borrower nor the sureties, guarantors, successors, or assigns of either Borrower
shall be obligated to pay the excess amount of such interest or any other excess
sum paid for the use, forbearance, or detention of sums loaned pursuant hereto.
In the event any Lender or the Administrative Agent ever receives, collects, or
applies as interest any such sum, such amount which would be in excess of the
maximum amount permitted by applicable law shall be applied as a payment and
reduction of the principal of the indebtedness owing under this Agreement; and,
if the principal owing has been paid in full, any remaining excess shall
forthwith be paid to the Borrowers. In determining whether or not the interest
paid or payable exceeds the Maximum Rate, the Borrowers, the Administrative
Agent, and each Lender shall, to the extent permitted by applicable law, (a)
characterize any non-principal payment as an expense, fee, or premium rather
than as interest, (b) exclude voluntary prepayments and the effects thereof, and
(c) amortize, prorate, allocate, and spread in equal or unequal parts the total
amount of interest throughout the entire contemplated term of the indebtedness
owing pursuant to this Agreement so that interest for the entire term does not
exceed the Maximum Rate.

         9.15. Non-Application of Chapter 346 of Texas Finance Code. The
provisions of Chapter 346 of the Texas Credit Code, as amended from time to
time, are specifically declared by the parties hereto not to be applicable to
this Agreement or any of the other Loan Documents or to the transactions
contemplated hereby.

         9.16. Survival of Prior Agreements. The rights and privileges
(excluding the confidentiality and indemnification provisions which are being
restated pursuant to this Agreement) afforded the Administrative Agent and the
Arranger in that certain commitment letter and that certain fee letter, each
dated August 9, 2000 among such Persons and Parent Borrower, shall survive the
execution and delivery of this Agreement, and the Administrative Agent and the
Arranger shall continue to be entitled to the benefits thereof.

                                    ARTICLE X

                            THE ADMINISTRATIVE AGENT

         10.1. Appointment; Nature of Relationship. Bank One, Texas, NA is
hereby appointed by each of the Lenders as its contractual representative
(herein referred to as the "Administrative Agent") hereunder and under each
other Loan Document, and each of the Lenders irrevocably authorizes the
Administrative Agent to act as the contractual representative of such Lender
with the rights and duties expressly set forth herein and in the other Loan
Documents. The Administrative Agent agrees to act as such contractual
representative upon the express conditions contained in this Article X.
Notwithstanding the use of the defined term "Administrative Agent," it is
expressly understood and agreed that the Administrative Agent shall not have any
fiduciary responsibilities to any Lender by reason of this Agreement or any
other Loan Document and that the Administrative Agent is merely acting as the
contractual representative of the Lenders with only those duties as are
expressly set forth in this Agreement and the other Loan Documents. In its
capacity as the Lenders' contractual representative, the

                                      -62-

<PAGE>   70

Administrative Agent (i) does not hereby assume any fiduciary duties to any of
the Lenders, (ii) is a "representative" of the Lenders within the meaning of
Section 9-105 of the Uniform Commercial Code and (iii) is acting as an
independent contractor, the rights and duties of which are limited to those
expressly set forth in this Agreement and the other Loan Documents. Each of the
Lenders hereby agrees to assert no claim against the Administrative Agent on any
agency theory or any other theory of liability for breach of fiduciary duty, all
of which claims each Lender hereby waives.

         10.2. Powers. The Administrative Agent shall have and may exercise such
powers under the Loan Documents as are specifically delegated to the
Administrative Agent by the terms of each thereof, together with such powers as
are reasonably incidental thereto. The Administrative Agent shall have no
implied duties to the Lenders, or any obligation to the Lenders to take any
action thereunder except any action specifically provided by the Loan Documents
to be taken by the Administrative Agent.

         10.3. General Immunity. Neither the Administrative Agent nor any of its
directors, officers, agents or employees shall be liable to the Borrowers, the
Lenders or any Lender for any action taken or omitted to be taken by it or them
hereunder or under any other Loan Document or in connection herewith or
therewith except to the extent such action or inaction is determined in a final
non-appealable judgment by a court of competent jurisdiction to have arisen from
the gross negligence, bad faith or willful misconduct of such Person.

         10.4. No Responsibility for Credit Extensions, Recitals, etc. Neither
the Administrative Agent nor any of its directors, officers, agents or employees
shall be responsible for or have any duty to ascertain, inquire into, or verify
(a) any statement, warranty or representation made in connection with any Loan
Document or any borrowing hereunder; (b) the performance or observance of any of
the covenants or agreements of any obligor under any Loan Document, including,
without limitation, any agreement by an obligor to furnish information directly
to each Lender; (c) the satisfaction of any condition specified in Article IV,
except receipt of items required to be delivered solely to the Administrative
Agent; (d) the existence or possible existence of any Default or Unmatured
Default; (e) the validity, enforceability, effectiveness, sufficiency or
genuineness of any Loan Document or any other instrument or writing furnished in
connection therewith; (f) the value, sufficiency, creation, perfection or
priority of any Lien in any collateral security; or (g) the financial condition
of the Borrowers or any guarantor of any of the Obligations or of any of the
Parent Borrower's or any such guarantor's respective Subsidiaries. The
Administrative Agent shall have no duty to disclose to the Lenders information
that is not required to be furnished by the Borrowers to the Administrative
Agent at such time, but is voluntarily furnished by the Borrowers to the
Administrative Agent (either in its capacity as Administrative Agent or in its
individual capacity).

         10.5. Action on Instructions of Lenders. The Administrative Agent shall
in all cases be fully protected in acting, or in refraining from acting,
hereunder and under any other Loan Document in accordance with written
instructions signed by the Required Lenders, and such instructions and any
action taken or failure to act pursuant thereto shall be binding on all of the
Lenders. The Lenders hereby acknowledge that the Administrative Agent shall be
under no duty to take any discretionary action permitted to be taken by it
pursuant to the provisions of this Agreement or any other Loan Document

                                      -63-

<PAGE>   71

unless it shall be requested in writing to do so by the Required Lenders. The
Administrative Agent shall be fully justified in failing or refusing to take any
action hereunder and under any other Loan Document unless it shall first be
indemnified to its satisfaction by the Lenders pro rata against any and all
liability, cost and expense that it may incur by reason of taking or continuing
to take any such action.

         10.6. Employment of Administrative Agents and Counsel. The
Administrative Agent may execute any of its duties as Administrative Agent
hereunder and under any other Loan Document by or through employees, agents, and
attorneys-in-fact and shall not be answerable to the Lenders, except as to money
or securities received by it or its authorized agents, for the default or
misconduct of any such agents or attorneys-in-fact selected by it with
reasonable care. The Administrative Agent shall be entitled to advice of counsel
concerning the contractual arrangement between the Administrative Agent and the
Lenders and all matters pertaining to the Administrative Agent's duties
hereunder and under any other Loan Document.

         10.7. Reliance on Documents; Counsel. The Administrative Agent shall be
entitled to rely upon any Note, notice, consent, certificate, affidavit, letter,
telegram, statement, paper or document believed by it to be genuine and correct
and to have been signed or sent by the proper person or persons, and, in respect
to legal matters, upon the opinion of counsel selected by the Administrative
Agent, which counsel may be employees of the Administrative Agent.

         10.8. Administrative Agent's Reimbursement and Indemnification. The
Lenders agree to reimburse and indemnify the Administrative Agent ratably in
proportion to their respective Commitments (or, if the Commitments have been
terminated, in proportion to their Commitments immediately prior to such
termination) (i) for any amounts not reimbursed by the Borrowers for which the
Administrative Agent is entitled to reimbursement by the Borrowers or either of
them under the Loan Documents, (ii) for any other expenses incurred by the
Administrative Agent on behalf of the Lenders, in connection with the
preparation, execution, delivery, administration and enforcement of the Loan
Documents (including, without limitation, for any expenses incurred by the
Administrative Agent in connection with any dispute between the Administrative
Agent and any Lender or between two or more of the Lenders) and (iii) for any
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements of any kind and nature whatsoever which may be
imposed on, incurred by or asserted against the Administrative Agent in any way
relating to or arising out of the Loan Documents or any other document delivered
in connection therewith or the transactions contemplated thereby (including,
without limitation, for any such amounts incurred by or asserted against the
Administrative Agent in connection with any dispute between the Administrative
Agent and any Lender or between two or more of the Lenders), or the enforcement
of any of the terms of the Loan Documents or of any such other documents,
provided that (i) no Lender shall be liable for any of the foregoing to the
extent any of the foregoing is found in a final non-appealable judgment by a
court of competent jurisdiction to have resulted from the gross negligence or
willful misconduct of the Administrative Agent and (ii) any indemnification
required pursuant to Section 3.5(vii) shall, notwithstanding the provisions of
this Section 10.8, be paid by the relevant Lender in accordance with the
provisions thereof. The obligations of the Lenders under this Section 10.8 shall
survive payment of the Obligations and termination of this Agreement.

                                      -64-

<PAGE>   72

         10.9. Notice of Default. The Administrative Agent shall not be deemed
to have knowledge or notice of the occurrence of any Default or Unmatured
Default hereunder unless the Administrative Agent has received written notice
from a Lender or the Borrowers referring to this Agreement describing such
Default or Unmatured Default and stating that such notice is a "notice of
default". In the event that the Administrative Agent receives such a notice, the
Administrative Agent shall give prompt notice thereof to the Lenders.

         10.10. Rights as a Lender. In the event the Administrative Agent is a
Lender, the Administrative Agent shall have the same rights and powers hereunder
and under any other Loan Document with respect to its Commitment and its Credit
Extensions as any Lender and may exercise the same as though it were not the
Administrative Agent, and the term "Lender" or "Lenders" shall, at any time when
the Administrative Agent is a Lender, unless the context otherwise indicates,
include the Administrative Agent in its individual capacity. The Administrative
Agent and its Affiliates may accept deposits from, lend money to, and generally
engage in any kind of trust, debt, equity or other transaction, in addition to
those contemplated by this Agreement or any other Loan Document, with the Parent
Borrower or any of its Subsidiaries in which the Parent Borrower or such
Subsidiary is not restricted hereby from engaging with any other Person.

         10.11. Lender Credit Decision. Each Lender acknowledges that it has,
independently and without reliance upon the Administrative Agent, the Arranger
or any other Lender and based on the financial statements prepared by the
Borrowers and such other documents and information as it has deemed appropriate,
made its own credit analysis and decision to enter into this Agreement and the
other Loan Documents. Each Lender also acknowledges that it will, independently
and without reliance upon the Administrative Agent, the Arranger 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 decisions in taking or not taking
action under this Agreement and the other Loan Documents.

         10.12. Successor Administrative Agent. The Administrative Agent may
resign at any time by giving written notice thereof to the Lenders and the
Borrowers, such resignation to be effective upon the appointment of a successor
Administrative Agent or, if no successor Administrative Agent has been
appointed, forty-five days after the retiring Administrative Agent gives notice
of its intention to resign. The Administrative Agent may be removed at any time
with or without cause by written notice received by the Administrative Agent
from the Required Lenders, such removal to be effective on the date specified by
the Required Lenders. Upon any such resignation or removal, the Required Lenders
shall have the right to appoint, on behalf of the Borrowers and the Lenders, a
successor Administrative Agent. If no successor Administrative Agent shall have
been so appointed by the Required Lenders within thirty days after the resigning
Administrative Agent's giving notice of its intention to resign, then the
resigning Administrative Agent may appoint, on behalf of the Borrowers and the
Lenders, a successor Administrative Agent. Notwithstanding the previous
sentence, the Administrative Agent may at any time without the consent of either
Borrower or any Lender, appoint any of its Affiliates which is a commercial bank
as a successor Administrative Agent hereunder. If the Administrative Agent has
resigned or been removed and no successor Administrative Agent has been
appointed, the Lenders may perform all the duties of the Administrative Agent
hereunder and the Borrowers shall make all payments in respect of the
Obligations

                                      -65-

<PAGE>   73

to the applicable Lender and for all other purposes shall deal directly with the
Lenders. No successor Administrative Agent shall be deemed to be appointed
hereunder until such successor Administrative Agent has accepted the
appointment. Any such successor Administrative Agent shall be a commercial bank
having capital and retained earnings of at least $1,000,000,000. Upon the
acceptance of any appointment as Administrative Agent hereunder by a successor
Administrative Agent, such successor Administrative Agent shall thereupon
succeed to and become vested with all the rights, powers, privileges and duties
of the resigning or removed Administrative Agent. Upon the effectiveness of the
resignation or removal of the Administrative Agent, the resigning or removed
Administrative Agent shall be discharged from its duties and obligations
hereunder and under the Loan Documents. After the effectiveness of the
resignation or removal of an Administrative Agent, the provisions of this
Article X shall continue in effect for the benefit of such Administrative Agent
in respect of any actions taken or omitted to be taken by it while it was acting
as the Administrative Agent hereunder and under the other Loan Documents. In the
event that there is a successor to the Administrative Agent by merger, or the
Administrative Agent assigns its duties and obligations to an Affiliate pursuant
to this Section 10.12, then the term "Prime Rate" as used in this Agreement
shall mean the prime rate, base rate or other analogous rate of the new
Administrative Agent.

         10.13. Administrative Agent and Arranger Fees. The Parent Borrower
agrees to pay to the Administrative Agent and the Arranger, for their respective
accounts, the fees agreed to by the Parent Borrower, the Administrative Agent
and the Arranger pursuant to that certain letter agreement dated August 9, 2000,
or as otherwise agreed from time to time.

         10.14. Delegation to Affiliates. The Borrowers and the Lenders agree
that the Administrative Agent may delegate any of its duties under this
Agreement to any of its Affiliates. Any such Affiliate (and such Affiliate's
directors, officers, agents and employees) which performs duties in connection
with this Agreement shall be entitled to the same benefits of the
indemnification, waiver and other protective provisions to which the
Administrative Agent is entitled under Articles IX and X.

         10.15. Co-Agents, Documentation Agent, Syndication Agent, etc. Neither
any of the Lenders identified in this Agreement as a "co-agent" nor the
Documentation Agent or the Syndication Agent shall have any right, power,
obligation, liability, responsibility or duty under this Agreement other than
those applicable to all Lenders as such. Without limiting the foregoing, none of
such Lenders shall have or be deemed to have a fiduciary relationship with any
Lender. Each Lender hereby makes the same acknowledgments with respect to such
Lenders as it makes with respect to the Administrative Agent in Section 10.11.

                                      -66-

<PAGE>   74

                                   ARTICLE XI

                            SETOFF; RATABLE PAYMENTS

         11.1. Setoff. In addition to, and without limitation of, any rights of
the Lenders under applicable law, if either Borrower becomes insolvent, however
evidenced, or any Default occurs, any and all deposits (including all account
balances, whether provisional or final and whether or not collected or
available) and any other Indebtedness at any time held or owing by any Lender or
any Affiliate of any Lender to or for the credit or account of either Borrower
may be offset and applied toward the payment of the Obligations owing to such
Lender, whether or not the Obligations, or any part thereof, shall then be due.

         11.2. Ratable Payments. If any Lender, whether by setoff or otherwise,
has payment made to it upon its Outstanding Credit Exposure (other than payments
received pursuant to Section 3.1, 3.2, 3.4 or 3.5) in a greater proportion than
that received by any other Lender, such Lender agrees, promptly upon demand, to
purchase a portion of the Aggregate Outstanding Credit Exposure held by the
other Lenders so that after such purchase each Lender will hold its Pro Rata
Share of the Aggregate Outstanding Credit Exposure. If any Lender, whether in
connection with setoff or amounts which might be subject to setoff or otherwise,
receives collateral or other protection for its Obligations or such amounts
which may be subject to setoff, such Lender agrees, promptly upon demand, to
take such action necessary such that all Lenders share in the benefits of such
collateral ratably in proportion to their respective Pro Rata Share of the
Aggregate Outstanding Credit Exposure. In case any such payment is disturbed by
legal process, or otherwise, appropriate further adjustments shall be made.

                                   ARTICLE XII

                BENEFIT OF AGREEMENT; ASSIGNMENTS; PARTICIPATIONS

         12.1. Successors and Assigns. The terms and provisions of the Loan
Documents shall be binding upon and inure to the benefit of the Borrowers and
the Lenders and their respective successors and assigns, except that (i) neither
Borrower shall have the right to assign its rights or obligations under the Loan
Documents and (ii) any assignment by any Lender must be made in compliance with
Section 12.3. The parties to this Agreement acknowledge that clause (ii) of this
Section 12.1 relates only to absolute assignments and does not prohibit
assignments creating security interests, including, without limitation, any
pledge or assignment by any Lender of all or any portion of its rights under
this Agreement and any Note to a Federal Reserve Bank; provided, however, that
no such pledge or assignment creating a security interest shall release the
transferor Lender from its obligations hereunder unless and until the parties
thereto have complied with the provisions of Section 12.3. The Administrative
Agent may treat the Person which made any Credit Extension or which holds any
Note as the owner thereof for all purposes hereof unless and until such Person
complies with Section 12.3; provided, however, that the Administrative Agent may
in its discretion (but shall not be required to) follow instructions from the
Person which made any Credit Extension or which holds any Note to direct
payments relating to such Credit Extension or Note to another Person. Any
assignee of the rights to any Credit Extension or any Note agrees by acceptance
of such

                                      -67-

<PAGE>   75

assignment to be bound by all the terms and provisions of the Loan Documents.
Any request, authority or consent of any Person, who at the time of making such
request or giving such authority or consent is the owner of the rights to any
Credit Extension (whether or not a Note has been issued in evidence thereof),
shall be conclusive and binding on any subsequent holder or assignee of the
rights to such Credit Extension.

         12.2. Participations.

                  12.2.1. Permitted Participants; Effect. Any Lender may, in the
         ordinary course of its business and in accordance with applicable law,
         at any time sell to one or more banks or other entities
         ("Participants") participating interests in any Outstanding Credit
         Exposure of such Lender, any Note held by such Lender, any Commitment
         of such Lender or any other interest of such Lender under the Loan
         Documents. In the event of any such sale by a Lender of participating
         interests to a Participant, such Lender's obligations under the Loan
         Documents shall remain unchanged, such Lender shall remain solely
         responsible to the other parties hereto for the performance of such
         obligations, such Lender shall remain the owner of its Outstanding
         Credit Exposure and the holder of any Note issued to it in evidence
         thereof for all purposes under the Loan Documents, all amounts payable
         by the Borrowers under this Agreement shall be determined as if such
         Lender had not sold such participating interests, and the Borrowers and
         the Administrative Agent shall continue to deal solely and directly
         with such Lender in connection with such Lender's rights and
         obligations under the Loan Documents.

                  12.2.2. Voting Rights. Each Lender shall retain the sole right
         to approve, without the consent of any Participant, any amendment,
         modification or waiver of any provision of the Loan Documents other
         than any amendment, modification or waiver with respect to any Credit
         Extension or Commitment in which such Participant has an interest which
         forgives principal, interest, fees or any Reimbursement Obligation or
         reduces the interest rate or fees payable with respect to any such
         Credit Extension or Commitment, extends the Facility Termination Date,
         postpones any date fixed for any regularly-scheduled payment of
         principal of or interest on any Credit Extension in which such
         Participant has an interest, or any regularly-scheduled payment of fees
         on any such Credit Extension or Commitment, releases any guarantor of
         any such Credit Extension (except as otherwise permitted by Section
         8.2(v)) or releases any collateral held in the Facility LC Collateral
         Account (except in accordance with the terms hereof) or all or
         substantially all of any other collateral, if any, securing any such
         Credit Extension.

                  12.2.3. Benefit of Setoff. Each Borrower agrees that each
         Participant shall be deemed to have the right of setoff provided in
         Section 11.1 in respect of its participating interest in amounts owing
         under the Loan Documents to the same extent as if the amount of its
         participating interest were owing directly to it as a Lender under the
         Loan Documents, provided that each Lender shall retain the right of
         setoff provided in Section 11.1 with respect to the amount of
         participating interests sold to each Participant. The Lenders agree to
         share with each Participant, and each Participant, by exercising the
         right of setoff provided in Section 11.1, agrees to share with each

                                      -68-

<PAGE>   76

         Lender, any amount received pursuant to the exercise of its right of
         setoff, such amounts to be shared in accordance with Section 11.2 as if
         each Participant were a Lender.

         12.3. Assignments.

                  12.3.1. Permitted Assignments. Any Lender may, in the ordinary
         course of its business and in accordance with applicable law, at any
         time assign to one or more banks or other entities ("Purchasers") all
         or any part of its rights and obligations under the Loan Documents;
         provided however, if such assignments are of Eurodollar Loans prior to
         the last day of the Interest Period applicable thereto, the Borrowers
         will not be required to pay the breakage fees, if any, associated with
         such assignment. Such assignment shall be substantially in the form of
         Exhibit C or in such other form as may be agreed to by the parties
         thereto. The consent of the Borrowers, the Administrative Agent and the
         LC Issuer shall be required prior to an assignment becoming effective
         with respect to a Purchaser which is not a Lender or an Affiliate
         thereof; provided, however, that if a Default has occurred and is
         continuing, the consent of the Borrowers shall not be required. Such
         consent shall not be unreasonably withheld or delayed. Each such
         assignment with respect to a Purchaser which is not a Lender or an
         Affiliate thereof shall (unless each of the Parent Borrower and the
         Administrative Agent otherwise consents) be in an amount not less than
         the lesser of (i) $5,000,000 or (ii) the remaining amount of the
         assigning Lender's Commitment (calculated as at the date of such
         assignment) or outstanding Credit Extensions (if the applicable
         Commitment has been terminated).

                  12.3.2. Effect; Effective Date. Upon (i) delivery to the
         Administrative Agent of a notice of assignment, substantially in the
         form attached as Exhibit I to Exhibit C (a "Notice of Assignment"),
         together with any consents required by Section 12.3.1, and (ii)
         effective on and after January 9, 2001, payment of a $4,000 fee to the
         Administrative Agent for processing such assignment, such assignment
         shall become effective on the effective date specified in such Notice
         of Assignment. The Notice of Assignment shall contain a representation
         by the Purchaser to the Administrative Agent and the Borrowers to the
         effect that none of the consideration used to make the purchase of the
         Commitment and Outstanding Credit Exposure under the applicable
         assignment agreement are "plan assets" as defined under ERISA and that
         the rights and interests of the Purchaser in and under the Loan
         Documents will not be "plan assets" under ERISA. On and after the
         effective date of such assignment, such Purchaser shall for all
         purposes be a Lender party to this Agreement and any other Loan
         Document executed by or on behalf of the Lenders and shall have all the
         rights and obligations of a Lender under the Loan Documents, to the
         same extent as if it were an original party hereto, and no further
         consent or action by the Borrowers, the Lenders or the Administrative
         Agent shall be required to release the transferor Lender with respect
         to the percentage of the Aggregate Commitment and Outstanding Credit
         Exposure assigned to such Purchaser. Upon the consummation of any
         assignment to a Purchaser pursuant to this Section 12.3.2, the
         transferor Lender, the Administrative Agent and the Borrowers shall, if
         the transferor Lender or the Purchaser desires that its Loans be
         evidenced by Notes, make appropriate arrangements so that new Notes or,
         as appropriate, replacement Notes are issued to such transferor Lender
         and new Notes or, as appropriate, replacement Notes, are issued to such

                                      -69-

<PAGE>   77

         Purchaser, in each case in principal amounts reflecting their
         respective Commitments, as adjusted pursuant to such assignment.

         12.4. Dissemination of Information. Each Borrower authorizes each
Lender to disclose to any Participant or Purchaser or any other Person acquiring
an interest in the Loan Documents by operation of law (each a "Transferee") and
any prospective Transferee any and all information in such Lender's possession
concerning the creditworthiness of the Parent Borrower and its Subsidiaries,
including without limitation any information contained in any Reports; provided
that each Transferee and prospective Transferee agrees to be bound by Section
9.11 of this Agreement.

         12.5. Tax Treatment. If any interest in any Loan Document is
transferred to any Transferee which is organized under the laws of any
jurisdiction other than the United States or any State thereof, the transferor
Lender shall cause such Transferee, concurrently with the effectiveness of such
transfer, to comply with the provisions of Section 3.5(iv).

                                  ARTICLE XIII

                                     NOTICES

         13.1. Notices. Except as otherwise permitted by Section 2.14 with
respect to borrowing notices, all notices, requests and other communications to
any party hereunder shall be in writing (including electronic transmission,
facsimile transmission or similar writing) and shall be given to such party: (x)
in the case of the Borrowers or the Administrative Agent, at its address or
facsimile number set forth on the signature pages hereof, (y) in the case of any
Lender, at its address or facsimile number set forth below its signature hereto,
or (z) in the case of any party, at such other address or facsimile number as
such party may hereafter specify for the purpose by notice to the Administrative
Agent and the Parent Borrower in accordance with the provisions of this Section
13.1. Each such notice, request or other communication shall be effective (i) if
given by facsimile transmission, when transmitted to the facsimile number
specified in this Section and confirmation of receipt is received, (ii) if given
by mail, 72 hours after such communication is deposited in the mails with first
class postage prepaid, addressed as aforesaid, or (iii) if given by any other
means, when delivered (or, in the case of electronic transmission, received) at
the address specified in this Section; provided that notices to the
Administrative Agent under Article II shall not be effective until received.

         13.2. Change of Address. The Borrowers, the Administrative Agent and
any Lender may each change the address for service of notice upon it by a notice
in writing to the other parties hereto.

                                      -70-

<PAGE>   78

                                   ARTICLE XIV

                                  COUNTERPARTS

         This Agreement may be executed in any number of counterparts, all of
which taken together shall constitute one agreement, and any of the parties
hereto may execute this Agreement by signing any such counterpart. This
Agreement shall be effective when it has been executed by the Borrowers, the
Administrative Agent, the LC Issuer and the Lenders and each party has notified
the Administrative Agent by facsimile transmission or telephone that it has
taken such action.

                                   ARTICLE XV

          CHOICE OF LAW; CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL

         15.1. CHOICE OF LAW. THE LOAN DOCUMENTS (OTHER THAN THOSE CONTAINING A
CONTRARY EXPRESS CHOICE OF LAW PROVISION) SHALL BE CONSTRUED IN ACCORDANCE WITH
THE INTERNAL LAWS WITHOUT REGARD TO THE CONFLICT OF LAWS PROVISIONS) OF THE
STATE OF TEXAS, BUT GIVING EFFECT TO FEDERAL LAWS APPLICABLE TO NATIONAL BANKS.

         15.2. CONSENT TO JURISDICTION. EACH BORROWER HEREBY IRREVOCABLY SUBMITS
TO THE NON-EXCLUSIVE JURISDICTION OF ANY UNITED STATES FEDERAL OR TEXAS STATE
COURT SITTING IN DALLAS, TEXAS IN ANY ACTION OR PROCEEDING ARISING OUT OF OR
RELATING TO ANY LOAN DOCUMENTS AND EACH BORROWER HEREBY IRREVOCABLY AGREES THAT
ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED
IN ANY SUCH COURT AND IRREVOCABLY WAIVES ANY OBJECTION IT MAY NOW OR HEREAFTER
HAVE AS TO THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN SUCH A
COURT OR THAT SUCH COURT IS AN INCONVENIENT FORUM. NOTHING HEREIN SHALL LIMIT
THE RIGHT OF THE ADMINISTRATIVE AGENT, THE LC ISSUER OR ANY LENDER TO BRING
PROCEEDINGS AGAINST EITHER BORROWER IN THE COURTS OF ANY OTHER JURISDICTION. ANY
JUDICIAL PROCEEDING BY EITHER BORROWER AGAINST THE ADMINISTRATIVE AGENT, THE LC
ISSUER OR ANY LENDER OR ANY AFFILIATE OF THE ADMINISTRATIVE AGENT, THE LC ISSUER
OR ANY LENDER INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER IN ANY WAY ARISING
OUT OF, RELATED TO, OR CONNECTED WITH ANY LOAN DOCUMENT SHALL BE BROUGHT ONLY IN
A COURT IN DALLAS, TEXAS.

         15.3. WAIVER OF JURY TRIAL. EACH BORROWER, THE ADMINISTRATIVE AGENT,
THE LC ISSUER AND EACH LENDER HEREBY WAIVE TRIAL BY JURY IN ANY JUDICIAL
PROCEEDING INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER

                                      -71-

<PAGE>   79

(WHETHER SOUNDING IN TORT, CONTRACT OR OTHERWISE) IN ANY WAY ARISING OUT OF,
RELATED TO, OR CONNECTED WITH ANY LOAN DOCUMENT OR THE RELATIONSHIP ESTABLISHED
THEREUNDER.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                      -72-

<PAGE>   80

         IN WITNESS WHEREOF, the Parent Borrower, the Lenders, the LC Issuer and
the Administrative Agent have executed this Agreement as of the date first above
written.

CENTEX CONSTRUCTION PRODUCTS, INC.,
as Parent Borrower

                                       By:
                                          -------------------------------------

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

                                       Address:     2728 N. Harwood
                                                    Dallas, Texas  75201

                                       Attention:   Arthur R. Zunker, Jr.
                                                    Chief Financial Officer
                                       Telephone:   (214) 981-6510
                                       FAX:         (214) 981-6559

                                       REPUBLIC HOLDING CORPORATION,
                                       as Subsidiary Borrower

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

                                       Address:     2728 N. Harwood
                                                    Dallas, Texas  75201

                                       Attention:   Arthur R. Zunker, Jr.
                                                    Chief Financial Officer
                                       Telephone:   (214) 981-6510
                                       FAX:         (214) 981-6559

                                      -73-

<PAGE>   81

Commitments

         $140,000,000                  BANK ONE, TEXAS, NA,
                                       Individually, as Administrative Agent
                                       and as a Lender

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

                                       Address:     1717 Main Street, 3rd Floor
                                                    Dallas, Texas  75201

                                       Attention:   Kathy M. Turner
                                       Telephone:   (214) 290-4438
                                       FAX:         (214) 290-2765

                                       BANK ONE, NA,
                                       as LC Issuer

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

                                       Address:     1717 Main Street, 3rd Floor
                                                    Dallas, Texas  75201

                                       Attention:   Kathy M. Turner
                                       Telephone:   (214) 290-4438
                                       FAX:         (214) 290-2765

                                      -74-

<PAGE>   82

         $35,000,000                   BANK OF AMERICA, N.A.,
                                       Individually, as Syndication Agent
                                       and as a Lender

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

                                       Attention:   Kelly Allred

                                       Telephone:   (949) 260-5654
                                       FAX:         (949) 260-5638

                                      -75-

<PAGE>   83

         $35,000,000                   PNC BANK, NATIONAL ASSOCIATION
                                       Individually, as Documentation Agent
                                       and as a Lender

                                       By:
                                          -------------------------------------
                                             Name:
                                                    ---------------------------
                                             Title:
                                                    ---------------------------
                                       Attention:   Philip Liebscher

                                       Telephone:   (412) 762-3202
                                       FAX:         (412) 762-6484

                                      -76-

<PAGE>   84

         $15,000,000                   BNP PARIBAS,
                                       as a Lender

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

                                       Attention:   Henry F. Setina

                                       Telephone:   (972) 788-9191
                                       FAX:         (972) 788-9140

                                      -77-

<PAGE>   85

         $15,000,000                   THE CHASE MANHATTAN BANK,
                                       as a Lender

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

                                       Attention:   Allen K. King

                                       Telephone:   (214) 965-2705
                                       FAX:         (214) 965-2044

                                      -78-

<PAGE>   86

         $15,000,000                   FIRSTAR BANK, N.A.,
                                       as a Lender

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

                                       Attention:   Greg Dryden

                                       Telephone:   (314) 418-3983
                                       FAX:         (314) 418-3859

                                      -79-

<PAGE>   87

         $15,000,000                   THE BANK OF TOKYO-MITSUBISHI, LTD.,
                                       as a Lender

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

                                       Attention:   John M. Mearns

                                       Telephone:   (214) 954-1200
                                       FAX:         (214) 954-1007

                                      -80-

<PAGE>   88

         $25,000,000                   CREDIT LYONNAIS NEW YORK BRANCH,
                                       as a Lender

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

                                       Attention:   Robert Smith

                                       Telephone:   (214) 220-2311
                                       FAX:         (214) 220-2323

                                      -81-

<PAGE>   89

         $20,000,000                   SUNTRUST BANK,
                                       as a Lender

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

                                       Attention:   Don Gaudette

                                       Telephone:   (404) 658-4925
                                       FAX:         (404) 827-6270

                                      -82-
<PAGE>   90

         $    10,000,000               BANK HAPOALIM B.M.,
                                       as a Lender

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

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

                                       Attention:   Chris Hillard

                                       Telephone:   (415) 989-9940
                                       FAX:         (415) 989-9948

         $325,000,000.00
         ===============

                                      -83-

<PAGE>   91

                                PRICING SCHEDULE

<TABLE>
<CAPTION>
   APPLICABLE       LEVEL I     LEVEL II     LEVEL III     LEVEL IV
     MARGIN         STATUS       STATUS       STATUS        STATUS
---------------     -------     --------     ---------     --------
<S>                <C>          <C>          <C>           <C>
Eurodollar Rate      0.75%        1.00%        1.25%         1.50%
Floating Rate        0.00%        0.00%        0.25%         0.50%
</TABLE>

<TABLE>
<CAPTION>
 APPLICABLE FEE     LEVEL I     LEVEL II     LEVEL III     LEVEL IV
      RATE          STATUS       STATUS       STATUS        STATUS
---------------     -------     --------     ---------     --------
<S>                <C>          <C>          <C>           <C>
Commitment Fee       0.25%        0.25%        0.30%        0.375%
</TABLE>

         For the purposes of this Schedule, the following terms have the
following meanings, subject to the final paragraph of this Schedule:

         "Financials" means the annual or quarterly financial statements of the
Parent Borrower delivered pursuant to Section 6.1(i) or (ii).

         "Level I Status" exists at any date if, as of the last day of the
fiscal quarter of the Parent Borrower referred to in the most recent Financials,
the Leverage Ratio is less than 1.00 to 1.00.

         "Level II Status" exists at any date if, as of the last day of the
fiscal quarter of the Parent Borrower referred to in the most recent Financials,
(i) the Parent Borrower has not qualified for Level I Status and (ii) the
Leverage Ratio is greater than or equal to 1.00 to 1.00 but less than 1.50 to
1.00.

         "Level III Status" exists at any date if, as of the last day of the
fiscal quarter of the Parent Borrower referred to in the most recent Financials,
(i) the Parent Borrower has not qualified for Level I Status or Level II Status
and (ii) the Leverage Ratio is greater than or equal to 1.50 to 1.00 but less
than 2.00 to 1.00.

         "Level IV Status" exists at any date if the Parent Borrower has not
qualified for Level I Status, Level II Status or Level III Status.

         "Status" means either Level I Status, Level II Status, Level III Status
or Level IV Status.

         The Applicable Margin and Applicable Fee Rate shall be determined in
accordance with the foregoing table based on the Parent Borrower's Status as
reflected in the then most recent Financials. Adjustments, if any, to the
Applicable Margin or Applicable Fee Rate shall be effective five Business Days
after the Administrative Agent has received the applicable Financials. If the
Parent Borrower fails to deliver the Financials to the Administrative Agent at
the time required pursuant to Section 6.1, then the Applicable Margin and
Applicable Fee Rate shall be the highest Applicable Margin and Applicable Fee

<PAGE>   92

Rate set forth in the foregoing table until five days after such Financials are
so delivered. Notwithstanding the foregoing, (a) the Applicable Margin for the
Eurodollar Rate shall remain no lower than Level III Status until the end of the
third fiscal quarter of fiscal year 2001, and (b) the Applicable Fee Rate shall
be 0.50% if at any time during such fiscal quarter the average daily Aggregate
Outstanding Credit Exposure is less than 50% of the Aggregate Commitment.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00020-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00020-of-00352.parquet"}]]