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<SEC-DOCUMENT>0000950154-02-000015.txt : 20020413
<SEC-HEADER>0000950154-02-000015.hdr.sgml : 20020413
ACCESSION NUMBER:		0000950154-02-000015
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		6
CONFORMED PERIOD OF REPORT:	20011129
ITEM INFORMATION:		Acquisition or disposition of assets
ITEM INFORMATION:		Financial statements and exhibits
FILED AS OF DATE:		20020115

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			FMC CORP
		CENTRAL INDEX KEY:			0000037785
		STANDARD INDUSTRIAL CLASSIFICATION:	CHEMICALS & ALLIED PRODUCTS [2800]
		IRS NUMBER:				940479804
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-02376
		FILM NUMBER:		2509509

	BUSINESS ADDRESS:	
		STREET 1:		200 E RANDOLPH DR
		CITY:			CHICAGO
		STATE:			IL
		ZIP:			60601
		BUSINESS PHONE:		3128616000

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	BEAN SPRAY PUMP CO
		DATE OF NAME CHANGE:	19670706

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	FOOD MACHINERY & CHEMICAL CORP
		DATE OF NAME CHANGE:	19670706
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>fmc-8k_52724.txt
<DESCRIPTION>FMC CORPORATION 8-K FILING
<TEXT>

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

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




                                    FORM 8-K

                                 CURRENT REPORT




                     Pursuant to Section 13 or 15 (d) of the
                         Securities Exchange Act of 1934

                Date of Report (Date of earliest event reported)
                                December 31, 2001





                                 FMC CORPORATION
             ------------------------------------------------------
             (Exact name of registrant as specified in its charter)




            Delaware                          1-2376             94-0479804
  ----------------------------            -------------     -------------------
  (State or other jurisdiction             (Commission      (I.R.S. Employer
        of incorporation)                  File Number)     Identification No.)




              1735 Market Street, Philadelphia, Pennsylvania 19103
               --------------------------------------------------
               (Address of principal executive offices) (Zip Code)




                                 (215) 299-6000
                         ------------------------------
                         Registrant's telephone number,
                               including area code



<PAGE>


PAGE 2

Item 2. Acquisition or Disposition of Assets

Spin-off of FMC Technologies, Inc. Stock

On December 31, 2001 FMC Corporation ("FMC") completed the separation of FMC
Technologies, Inc. ("FTI") through the tax-free distribution of all of the
remaining shares of FTI Common Stock owned by FMC. Previously, on November 29,
2001 the Board of Directors of FMC approved a distribution of FMC's remaining 83
percent equity interest in FTI by distributing a special dividend to FMC's
shareholders of record as of 6:00 p.m., Eastern Standard Time, on December 12,
2001, which is the record date. As of that date FMC owned 53.95 million shares
of common stock of FTI. The remaining 17 percent of FMC Technologies'
outstanding shares were sold in an initial public offering in June 2001.

FMC shareholders received 1.71972131 shares of FTI for each FMC share, based on
31.4 million FMC shares outstanding. The final distribution ratio was determined
based on the number of FMC shares outstanding on the record date. FMC
shareholders received whole shares of FTI and cash payments for fractional
shares. Cash received in lieu of fractional shares is taxable to the recipient.

The Information Statement issued to the registrant's stockholders and copies of
the registrant's press releases relating to this spin-off are filed herewith as
follows:

     - Exhibit 99.1: Press Release dated November 29, 2001
     - Exhibit 99.2: Information Statement dated December 14, 2001
     - Exhibit 99.3: Press Release dated December 31, 2001

Item 7. Financial Statements and Exhibits.

     (b)  Pro Forma Financial Information: Unaudited Pro Forma Consolidated
          Statements of Income of FMC Corporation for the nine months ended
          September 30, 2001 and for the year ended December 31, 2000 and
          Unaudited Pro Forma Condensed Consolidated Balance Sheet as of
          September 30, 2001.

FMC CORPORATION UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS - BASIS
OF PRESENTATION

The unaudited pro forma consolidated statements of income reflect the
consolidated results of operations of FMC Corporation ("FMC") assuming the
spin-off of its FMC Technologies, Inc. ("FTI") business, as discussed in Item 2
above, had occurred at the beginning of each period presented. The unaudited pro
forma condensed consolidated balance sheet reflects the consolidated financial
position of FMC after the spin-off of its FTI business, as discussed in Item 2
above, as though the spin-off had occurred at the balance sheet date.

The unaudited pro forma consolidated statements of income and the unaudited pro
forma consolidated balance sheet have been prepared by FMC based upon the
assumptions and adjustments it has deemed appropriate, as described in the
accompanying Notes to Unaudited Pro Forma Financial Statements.

The following unaudited pro forma information may not necessarily reflect the
consolidated results of operations of FMC that would have actually resulted, had
the transactions occurred as of the dates indicated. The unaudited pro forma
information should be read in conjunction with FMC's Annual Report on Form 10-K
and Quarterly Reports on Form 10-Q for the relevant time periods. Such
information contained herein represents management's best judgment as of the
date hereof based on information currently available. FMC does not intend to
update this information and disclaims any legal obligation to the contrary.
Historical information is not necessarily indicative of future performance.


<PAGE>

PAGE 3

<TABLE>
<CAPTION>

FMC CORPORATION AND CONSOLIDATED SUBSIDIARIES
PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF SEPTEMBER 30, 2001
(IN THOUSANDS, EXCEPT PER SHARE DATA)
                                                                                        Pro Forma
                                                                       Historic   ----------------------             Pro Forma
                                                                         FMC         FTI         Adj.       Note        FMC
                                                                       ---------  ----------  ----------   ------   ---------
<S>                                                                     <C>        <C>         <C>          <C>      <C>
ASSETS
   Current assets:
       Cash and cash equivalents                                       $   123.6  $    (89.0)                       $    34.6
       Trade receivables, net of allowance for doubtful
          accounts of $20.2 (pro forma $11.7)                              669.8      (352.0)                           317.8
       Inventories                                                         468.9      (276.8)                           192.1
       Due from FMC Technologies, Inc.                                        --          --  $     32.7      A          32.7
       Other current assets                                                195.8       (76.1)                           119.7
       Deferred income taxes                                               116.9       (28.1)                            88.8
                                                                       ---------  ----------  ----------            ---------
   Total current assets                                                  1,575.0      (822.0)       32.7                785.7

   Investments                                                              78.4       (27.0)                            51.4
   Property, plant and equipment at cost                                 3,136.4      (601.4)                         2,535.0
       Less -- accumulated depreciation                                  1,788.2      (345.0)                         1,443.2
                                                                       ---------  ----------  ----------            ---------
       Property, plant and equipment, net                                1,348.2      (256.4)                         1,091.8
   Goodwill and intangible assets                                          459.6      (343.1)                           116.5
   Other assets                                                            187.8        (9.3)                           178.5
   Deferred income taxes                                                   143.8       (29.6)                           114.2
                                                                        ---------  ----------  ---------             ---------
   Total assets                                                        $ 3,792.8  $ (1,487.4) $     32.7            $ 2,338.1
                                                                       =========  ==========  ==========            =========

LIABILITIES AND STOCKHOLDERS' EQUITY
   Current liabilities:
       Short-term debt                                                 $   192.9  $    (82.6)                       $   110.3
       Accounts payable, trade and other                                   563.0      (329.0)                           234.0
       Income taxes payable and other current liabilities                  656.9      (229.6)                           427.3
       Current portion of long-term debt                                    35.9          --                             35.9
       Current portion of accrued pension
         and other postretirement benefits                                  44.9       (17.5)                            27.4
       Intercompany payables                                                  --       (32.7) $     32.7      A            --
                                                                       ---------  ----------  ----------            ---------
   Total current liabilities                                             1,493.6      (691.4)       32.7                834.9

   Long-term debt, less current portion                                  1,001.7      (250.2)                           751.5
   Accrued pension and other postretirement
     benefits, less current portion                                        160.8       (50.6)                           110.2
   Reserves for discontinued operations and long-term
     environmental liabilities                                             257.7       (25.7)                           232.0
   Other non-current liabilities                                           151.4       (78.0)                            73.4
   Minority interests in consolidated companies                            117.2        (3.3)      (67.1)     B          46.8
   Stockholders' equity:
       Preferred stock, no par value, authorized 5,000,000 shares;
          no shares issued
       Common stock, $0.10 par value, authorized 130,000,000
         shares; issued 39,193,208 shares                                    3.9         (.7)         .7                  3.9
       Capital in excess of par value of common stock                      215.5      (509.8)      509.8                215.5
       Retained earnings                                                 1,229.0       (20.9)     (493.4)     B         764.7
       Accumulated other comprehensive (loss)                             (326.0)      143.2                           (182.8)
       Treasury stock, common, at cost; 7,974,738 shares                  (512.0)         --                           (512.0)
                                                                       ---------  ----------  ----------            ---------
       Total stockholders' equity                                          610.4      (388.2)       67.1                289.3
                                                                       ---------  ----------  ----------            ---------
   Total liabilities and stockholders' equity                          $ 3,792.8  $ (1,487.4) $     32.7            $ 2,338.1
                                                                       =========  ==========  ==========            =========

</TABLE>
- -------------------------------------------------------------------
A  - Recognition of receivable from FTI for changes in FTI's cash and debt
     balances through May 31, 2001 and intercompany transactions through
     September 30, 2001.
B  - Recognition of the dividend of FTI shares to FMC shareholders, including
     the elimination of the minority interest liability to FTI minority
     shareholders through the distribution of the dividend.

<PAGE>

PAGE 4

<TABLE>
<CAPTION>

FMC CORPORATION AND CONSOLIDATED SUBSIDIARIES
PRO FORMA CONSOLIDATED STATEMENTS OF INCOME
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001
(UNAUDITED AND IN MILLIONS, EXCEPT PER SHARE AMOUNTS)

                                                                                          Pro Forma
                                                                       Historic   -------------------------            Pro Forma
                                                                         FMC         FTI            Adj.       Note        FMC
                                                                       ---------  ----------     ----------   ------   ---------
<S>                                                                     <C>        <C>            <C>          <C>     <C>
Revenue                                                                $ 2,834.7   $(1,381.5)                          $ 1,453.2
Costs and expenses:
   Cost of sales or services                                             2,118.8    (1,065.6)                            1,053.2
   Selling, general and administrative expense                             393.1      (214.1)    $      2.4      C         181.4
   Research and development expense                                        115.9       (42.0)                               73.9
   Asset impairments                                                       324.4        (1.3)                              323.1
   Restructuring and other charges                                         215.0       (15.5)         (15.0)     D         184.5
                                                                       ---------   ---------     ----------            ---------
       Total costs and expenses                                          3,167.2    (1,338.5)         (12.6)             1,816.1
Income (loss) from continuing operations before minority interests,
   net interest expense, income taxes and the cumulative effect of a
   change in accounting principle                                         (332.5)      (43.0)         (12.6)              (362.9)

Minority interests                                                           5.8        (0.7)          (3.6)     E           1.5
Interest expense                                                            67.1       (10.5)         (11.2)     F          45.4
Interest income                                                             (3.6)        2.4                                (1.2)
                                                                       ---------   ---------     ----------            ---------
Income (loss) from continuing operations before income taxes
   and the cumulative effect of a change in accounting principle          (401.8)      (34.2)          27.4               (408.6)
Provision (benefit) for income taxes                                      (102.4)      (16.2)         (19.4)     G        (138.0)
                                                                       ---------   ---------     ----------            ---------

Income (loss) from continuing operations before cumulative effect
   of a change in accounting principle                                    (299.4)      (18.0)          46.8               (270.6)
Cumulative effect of change in accounting principle, net of
   income taxes                                                             (5.6)        4.7                                (0.9)
                                                                       ---------   ---------     ----------            ---------
Income (loss) from continuing operations                                 $(305.0)  $   (13.3)    $     46.8            $  (271.5)
                                                                       =========   =========     ==========            =========

Basic loss per common share:
   Loss from continuing operations before the cumulative
      effect of a change in accounting principle                       $   (9.65)                                      $   (8.73)
   Cumulative effect of a change in accounting principle,
      net of income taxes                                                  (0.18)                                          (0.03)
                                                                       ---------                                       ---------
   Net loss from continuing operations per common share                $   (9.83)                                      $   (8.76)
                                                                       =========                                       =========
Average number of shares used in basic loss per common
   share computations                                                       31.0                                            31.0
                                                                       =========                                       =========

Diluted loss per common share:
   Loss from continuing operations before the cumulative
      effect of a change in accounting principle                       $   (9.65)                                      $   (8.73)
   Cumulative effect of a change in accounting principle, net of
      income taxes                                                         (0.18)                                          (0.03)
                                                                       ---------                                       ---------
   Net loss from continuing operations per common share                $   (9.83)                                      $   (8.76)
                                                                       =========                                       =========
Average number of shares used in diluted loss per share computations        31.0                                            31.0
                                                                       =========                                       =========
</TABLE>

- --------------------------------------------------------------------------------
C  - Adjustment for corporate costs primarily associated with FTI stock-based
     compensation.
D  - Primarily severance and lease termination costs directly related to the
     decision to spin-off FTI. Pro forma FMC restructuring and other charges
     also include an additional $16.6 million related to the reorganization
     of FMC associated with the spin-off of FTI.
E  - Minority interest expense associated with FTI.
F  - Annualized interest expense allocated to FTI in accordance with EITF 87-24
     "Allocation of Interest to Discontinued Operations."
G  - Tax on pro forma adjustments calculated as follows:
     - Add back of tax provision adjustments related to
       legal entity reorganizations associated with the
       formation of FTI                                       ($28.7)
     - Taxable adjustments at 39%                                9.3
                                                            --------
                                                 Total        ($19.4)

     The pro forma effective tax rate on earnings excluding asset impairments of
     $323.1 and restructuring and other charges of $184.5 is approximately
     23.5%. The effective rate on earnings excluding these items for the full
     year, on a pro forma basis, is expected to be approximately 23.7%.

<PAGE>

PAGE 5

<TABLE>
<CAPTION>

FMC CORPORATION AND CONSOLIDATED SUBSIDIARIES
PRO FORMA CONSOLIDATED STATEMENTS OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 2000
(UNAUDITED AND IN MILLIONS, EXCEPT PER SHARE AMOUNTS)

                                                                                        Pro Forma
                                                                       Historic   ----------------------                Pro Forma
                                                                         FMC         FTI            Adj.       Note        FMC
                                                                       ---------  ----------     ----------   ------   ---------
<S>                                                                     <C>         <C>            <C>          <C>      <C>
Revenue                                                                $ 3,925.5   $(1,875.2)                          $ 2,050.3
Costs and expenses:
   Cost of sales and services                                            2,872.0    (1,421.1)                            1,450.9
   Selling, general and administrative expense                             522.5      (291.2)                              231.3
   Research and development expense                                        154.5       (56.7)                               97.8
   Asset impairments                                                        11.6        (1.5)                               10.1
   Restructuring and other charges                                          45.0        (9.8)                               35.2
                                                                       ---------   ---------     ----------            ---------
       Total costs and expenses                                          3,605.6    (1,780.3)                            1,825.3

Income from continuing operations before minority interests,
   net interest expense, income taxes and cumulative effect of a
   change in accounting principle                                          319.9       (94.9)                              225.0
Minority interests                                                           4.6          --                                 4.6
Interest expense                                                            99.7        (6.6)         (26.6)     F          66.5
Interest income                                                             (7.0)        2.3             --                 (4.7)
                                                                       ---------   ---------     ----------            ---------

Income from continuing operations before income taxes and cumulative
   effect of a change in accounting principle                              222.6       (90.6)          26.6                158.6
Provision for income taxes                                                  45.3       (22.7)          10.4      H          33.0
                                                                       ---------   ---------     ----------            ---------


Income from continuing operations before cumulative effect of a
   change in accounting principle                                      $   177.3   $   (67.9)         $16.2            $   125.6
                                                                       =========   =========     ==========            =========


Basic earnings from continuing operations per common share             $    5.83                                       $    4.13
                                                                       =========                                       =========
Average number of shares                                                    30.4                                            30.4
                                                                       =========                                       =========

Diluted earnings from continuing operations per common share used in
   basic earnings per share computations                               $    5.62                                      $    3.98
                                                                       =========                                       =========
Average number of shares used in diluted earnings per share
   computations                                                             31.6                                            31.6
                                                                       =========                                       =========

</TABLE>

- -----------------------------------------
H - Tax on pro forma adjustment at 39%.


(b)  Exhibits

     2.1  Form of Separation and Distribution Agreement
     4.1  $240,000,000 364-day Credit Agreement
     99.1 Press Release dated November 29, 2001 announcing the special dividend
          of FTI stock.
     99.2 Information Statement dated December 14, 2001
     99.3 Press Release dated December 31, 2001 announcing the completion of the
          special dividend of FTI stock

<PAGE>


PAGE 6


                                   SIGNATURES



Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

                                FMC CORPORATION


                                By /s/ Andrea E. Utecht
                                   ---------------------------------------------
                                       Andrea E. Utecht
                                       Vice President, General
                                       Counsel and Secretary




Date: January 9, 2002

<PAGE>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-2
<SEQUENCE>3
<FILENAME>fmcex2-1_52724.txt
<DESCRIPTION>EXHIBIT 2.1 - SEPARATION AND DISTRIBUTION AGREE
<TEXT>
                                                                     EXHIBIT 2.1


                                     FORM OF

                      SEPARATION AND DISTRIBUTION AGREEMENT

                                 by and between

                                 FMC CORPORATION

                                       and

                            FMC TECHNOLOGIES, INC.



                          Dated as of ________ __, 2001
<PAGE>


<TABLE>
<CAPTION>

                                TABLE OF CONTENTS

                                                                                                                      PAGE
                                                                                                                      ----
<S>       <C>  <C>                                                                                                    <C>
ARTICLE I.     DEFINITIONS...........................................................................................   2

          1.1  General...............................................................................................   2
          1.2  References to Time....................................................................................  14

ARTICLE II.    THE CONTRIBUTION......................................................................................  14

          2.1  Contribution..........................................................................................  14
          2.2  Conditions Precedent to Consummation of the Contribution..............................................  16
          2.3  Certain Foreign Transfers.............................................................................  16
          2.4  Ancillary Agreements..................................................................................  17
          2.5  Transfers Not Effected Prior to the Separation; Transfers Deemed Effective as of the Assumption Time..  18
          2.6  Assumption of Debt....................................................................................  19
          2.7  Certificate of Incorporation; By-laws; Rights Plan....................................................  19

ARTICLE III.   THE IPO AND ACTIONS PENDING THE IPO...................................................................  19

          3.1  Transactions Prior to the IPO.........................................................................  19
          3.2  Proceeds..............................................................................................  19
          3.3  Costs and Expenses....................................................................................  19
          3.4  Conditions Precedent to Consummation of the IPO.......................................................  19

ARTICLE IV.    THE DISTRIBUTION......................................................................................  20

          4.1  Record Date and Distribution Date.....................................................................  20
          4.2  The Agent.............................................................................................  20
          4.3  Delivery of Share Certificates to the Agent...........................................................  20
          4.4  Actions Prior to the Distribution.....................................................................  20
          4.5  The Distribution......................................................................................  21
          4.6  Conditions to Obligations.............................................................................  21
          4.7  Costs and Expenses....................................................................................  22
          4.8  Satisfaction or Waiver................................................................................  22

ARTICLE V.     SURVIVAL AND INDEMNIFICATION..........................................................................  22

          5.1  Survival of Agreements................................................................................  22
          5.2  Indemnification.......................................................................................  22
          5.3  Procedures for Indemnification for Third-Party Claims.................................................  23
          5.4  Remedies Cumulative...................................................................................  25


                                       -i-
<PAGE>

ARTICLE VI.    CERTAIN ADDITIONAL COVENANTS..........................................................................  25

          6.1  Notices to Third Parties..............................................................................  25
          6.2  Licenses and Permits..................................................................................  25
          6.3  Intercompany Agreements; Intercompany Accounts........................................................  25
          6.4  Guarantee Obligations.................................................................................  26
          6.5  Further Assurances....................................................................................  26
          6.6  Qualification as Tax-Free Distribution................................................................  27
          6.7  Non-Solicitation......................................................................................  28
          6.8  Aircraft..............................................................................................  28

ARTICLE VII.   ACCESS TO INFORMATION.................................................................................  28

          7.1  Agreement for Exchange of Information.................................................................  28
          7.2  Ownership of Information..............................................................................  29
          7.3  Compensation for Providing Information................................................................  29
          7.4  Record Retention......................................................................................  29
          7.5  Limitation of Liability...............................................................................  29
          7.6  Other Agreements Providing for Exchange of Information................................................  29
          7.7  Production of Witnesses; Records; Cooperation.........................................................  29
          7.8  Confidentiality.......................................................................................  30
          7.9  Protective Arrangements...............................................................................  31

ARTICLE VIII.  NO REPRESENTATIONS OR WARRANTIES......................................................................  31

          8.1  No Representations or Warranties......................................................................  31

ARTICLE IX.    REGISTRATION RIGHTS...................................................................................  32

          9.1  Demand Registration Rights............................................................................  32
          9.2  Piggy-back Registration Rights........................................................................  33
          9.3  Registration Procedures...............................................................................  34
          9.4  Registration Expenses.................................................................................  37
          9.5  Termination of Registration Obligation................................................................  38

ARTICLE X.     TERMINATION...........................................................................................  38

         10.1  Termination by Mutual Consent.........................................................................  38
         10.2  Effect of Termination.................................................................................  38

ARTICLE XI.    MISCELLANEOUS.........................................................................................  38

         11.1  Complete Agreement; Corporate Power...................................................................  38
         11.2  Expenses..............................................................................................  39
         11.3  Governing Law.........................................................................................  39
         11.4  Notices...............................................................................................  39
         11.5  Amendment and Modification............................................................................  39
         11.6  Successors and Assigns; No Third-Party Beneficiaries..................................................  39

                                      -ii-
<PAGE>

         11.7  Counterparts..........................................................................................  40
         11.8  Interpretation........................................................................................  40
         11.9  Severability..........................................................................................  40
        11.10  References; Construction..............................................................................  40
        11.11  Conflict with Ancillary Agreements....................................................................  40
        11.12  Post Foreign-Restructuring Capital Contribution.......................................................  40

ARTICLE XII.   NEGOTIATION...........................................................................................  40

         12.1  Negotiation...........................................................................................  40

</TABLE>
                                      -iii-
<PAGE>

                      SEPARATION AND DISTRIBUTION AGREEMENT

          This SEPARATION AND DISTRIBUTION AGREEMENT (this "Agreement"), dated
                                                            ---------
as of _______ __, 2001, is by and between FMC CORPORATION, a Delaware
corporation ("Parent"), and FMC TECHNOLOGIES, INC., a Delaware corporation and a
              ------
wholly owned subsidiary of Parent ("Technologies").
                                    ------------

                                    RECITALS
                                    --------

          WHEREAS, the Board of Directors of Parent has determined that it is in
the best interests of Parent and its stockholders to separate Parent's existing
businesses into two independent companies (the "Separation"), pursuant to the
                                                ----------
terms and subject to the conditions set forth in this Agreement;

          WHEREAS, to effect the Separation, Parent intends to cause the
transfer to Technologies of certain assets of Parent and its Subsidiaries, and
the assumption by Technologies of certain liabilities of Parent and its
Subsidiaries, primarily related to the Technologies Business (the
"Contribution") as contemplated by this Agreement and the Ancillary Agreements;
 ------------

          WHEREAS, to effect the Separation, Parent further intends to cause
Technologies to offer and sell for its own account in an initial public offering
(the "IPO") an amount of shares of common stock, par value $.01 per share, of
      ---
Technologies (together with the Technologies Rights, "Technologies Common
                                                      -------------------
Stock") that will reduce Parent's beneficial ownership of Technologies Common
- -----
Stock to an amount representing not less than 80.1 percent of the total voting
power of Technologies;

          WHEREAS, to effect the Separation, Parent, in its discretion, may
complete the Distribution;

          WHEREAS, it is the intention of the parties to this Agreement that,
for United States federal income tax purposes, the Distribution shall qualify as
a tax-free spin-off under Section 355 of the Internal Revenue Code of 1986, as
amended (the "Code");
              ----

          WHEREAS, the Boards of Directors of Parent and Technologies have each
determined that the Separation and the Contribution, the IPO, the Distribution
and the other transactions contemplated by this Agreement and the Ancillary
Agreements are in furtherance of and consistent with their respective business
strategies and are in the best interests of their respective companies and
stockholders and have approved this Agreement and the Ancillary Agreements; and

          WHEREAS, it is appropriate and desirable to set forth the principal
corporate transactions required to effect the Separation and certain other
agreements that will govern certain matters relating to the Separation and the
Contribution, the IPO and the Distribution and the relationship of Parent and
Technologies and their respective Subsidiaries following the IPO and the
Distribution.

<PAGE>

          NOW, THEREFORE, in consideration of the premises, and of the
representations, warranties, covenants and agreements set forth herein, the
parties hereto hereby agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

          SECTION 1.1  General.  As used in this Agreement, the following
                       -------
terms shall have the following meanings (such meanings to be equally applicable
to both the singular and plural forms of the terms defined):

          Accounts Receivable Facility:  the FMC Corporation Securitization
program arising pursuant to the Receivables Purchase Agreement dated as of
November 24, 1999  among FMC Funding Corporation, Parent, Corporation, as a
servicer, CIESCO, L.P., Citibank, N.A. and Citicorp North America, Inc., as
agent, and all documents, agreements and instruments related thereto.

          Action: any demand, action, lawsuit, countersuit, arbitration,
inquiry, proceeding or investigation by or before any Governmental Authority or
any arbitration or mediation tribunal.

          Actual IPO Proceeds: the proceeds received (priced at the IPO price)
from the underwriters by Technologies as a result of the IPO, net of all out-of-
pocket fees, costs and expenses incurred in connection with completing the
Contribution and IPO (including, without limitation, legal and accounting fees,
costs and expenses, printing costs, filing, listing and Blue Sky fees, transfer
agent and registrar costs, fees and expenses, expenses, fees and costs incurred
in connection with the road show presentations and all related meeting and
travel expenses), plus one-half the net amounts received (priced at the IPO
                  ----
price) in connection with the full exercise of any over-allotment option,
whether or not such option is exercised in part, in full or not at all.

          Affiliate:  with respect to any specified Person, a Person that
directly, or indirectly through one or more intermediaries, controls, is
controlled by, or is under common control with, such specified Person; provided,
                                                                       --------
however, that, for purposes of this Agreement, no member of either Group shall
- -------
be deemed to be an Affiliate of any member of the other Group.  As used herein,
"control" means the possession, directly or indirectly, of the power to direct
 -------
or cause the direction of the management and policies of such entity, whether
through ownership of voting securities or other interests, by contract or
otherwise.

          Agent: the distribution agent to be appointed by Parent to distribute
the shares of Technologies Common Stock pursuant to the Distribution.

          Agreement: as defined in the Recitals hereto.

          Amended and Restated By-laws: the Amended and Restated By-laws of
Technologies substantially in the form of Exhibit E hereto, with such changes as
                                          ---------
are acceptable to Parent and Technologies.

                                        2
<PAGE>

          Amended and Restated Certificate of Incorporation: the Amended and
Restated Certificate of Incorporation of Technologies substantially in the form
of Exhibit D hereto, with such changes as are acceptable to Parent and
   ---------
Technologies.

          Ancillary Agreements: the Benefits Agreement, the Tax Sharing
Agreement, agreements relating to the Foreign Transfers and certain transfers
and assumptions contemplated by Section 2.1(e), the Transition Services
                                --------------
Agreement, the Trademark License Agreement, the Insurance Proceeds Agreement,
any shared facilities agreements and the other agreements entered into or to be
entered into in connection with the Separation as contemplated by Article II of
                                                                  ----------
this Agreement.

          Assets: any and all assets, properties and rights (including goodwill)
of every kind, nature and description, whether real, personal or mixed, tangible
or intangible, accrued, contingent or otherwise, whether now existing or
hereafter acquired, wheresoever situated, and in each case whether or not
recorded or reflected or required to be recorded or reflected on the books and
records or financial statements of any Person, including, without limitation,
the following:

          (1) all cash, cash equivalents, notes, accounts receivable, notes
     receivable and mortgages receivable (whether current or non-current);

          (2) all interests in any capital stock or other equity interests, all
     rights as a partner or joint venturer or participant, certificates of
     deposit, banker's acceptances, bonds, notes, debentures, evidences of
     indebtedness, certificates of interest or participation in profit-sharing
     agreements, collateral-trust certificates, preorganization certificates or
     subscriptions, utility deposits, transferable shares, investment contracts,
     voting-trust certificates, fractional undivided interests in oil, gas or
     other mineral rights, all loans, advances or other extension of credit or
     capital contributions, and all puts, calls, straddles, warrants, options
     and other similar rights, and other securities of any kind;

          (3)  all Intellectual Property Rights;

          (4) all rights, title and interests in, to and under leases,
     subleases, contracts, licenses, permits, registrations, certifications,
     distribution arrangements, open purchase orders for raw materials,
     supplies, parts or services, unfilled orders for the manufacture and sale
     of products, other sales and purchase agreements, confidentiality
     agreements, and other agreements and business arrangements;

          (5)  all rights, title and interests in, to and under Real Property;

          (6) all leasehold improvements, fixtures, trade fixtures, machinery,
     equipment (including transportation and office equipment), tools, dies,
     furniture and furnishings;

          (7) all fixtures, machinery, equipment, tools, other inventories of
     supplies and spare parts, automobiles, forklifts, other vehicles and
     transportation equipment, furniture and office equipment, office supplies,
     production supplies, spare parts, other miscellaneous supplies, models,
     prototypes, test devices and other tangible assets or properties of any
     kind;

                                        3
<PAGE>

          (8) all apparatus, computers and other electronic data processing and
     computer equipment and all computer applications, programs and other
     software, including operating software, network software, firmware,
     middleware, design software, design tools, systems documentation and
     instructions;

          (9) all written technical information, data, specifications, research
     and development information, engineering drawings, operating and
     maintenance manuals, and materials and analyses prepared by consultants and
     other third parties;

          (10) all raw materials, parts, work-in-process, supplies, finished
     goods, consigned goods, products and other inventories;

          (11) all deposits, letters of credit, performance and surety bonds,
     prepayments and prepaid or advanced payments and expenses, trade accounts
     and other accounts and notes receivable;

          (12) all rights to causes of action, lawsuits, judgments, claims,
     choses in action, all rights under express or implied warranties, all
     claims or rights against any Person arising from the ownership of any
     Asset, all rights in connection with any bids or offers, all rights of
     recovery and all rights of setoff of any kind and demands of any nature, in
     each case whether mature, contingent or otherwise, whether in tort,
     contract or otherwise, whether arising by way of counterclaim or otherwise;

          (13) all rights to receive mail, payments on accounts receivable and
     other communications;

          (14) all rights under insurance policies and all rights in the nature
     of insurance, indemnification or contribution;

          (15) all accounting and other files, records and data, including
     schematics, books, manuals, technical information and engineering data,
     programming information, computerized data, books of account, ledgers,
     employment records, lists and files relating to customers, vendors,
     suppliers and agents, quality records and reports, research records, cost
     information, pricing data, market surveys and marketing know-how, mailing
     lists, purchase and sale records and correspondence, advertising and
     marketing records, of every kind, whether on paper, microfilm, microfiche,
     computer tape or disc, magnetic tape or any other form;

          (16) all goodwill as a going concern and other intangible properties;

          (17) all rights under employee contracts, including any rights
     thereunder to restrict an employee from competing in certain respects; and

          (18) all permits, approvals, orders, authorizations, consents,
     licenses, certificates, franchises, exemptions of, or filings or
     registrations with or issued by, any Governmental Authority in any
     jurisdiction, and all pending applications therefor.

          Assumption Time: 12:01 a.m. on May 1, 2001.

                                        4
<PAGE>

          Auto Liabilities: all Losses, whether direct or indirect, known or
unknown, current or potential, past, present or future, with respect of bodily
injury, personal injury or property damage arising from or relating to an
automobile of a Discontinued Machinery Business.

          Benefits Agreement: the Employee Benefits Agreement, between Parent
and Technologies, substantially in the form of Exhibit A hereto, with such
                                               ---------
changes as are acceptable to Parent and Technologies.

          Blackout Period: as defined in Section 9.1(b) hereof.
                                         --------------

          Business: the Technologies Business or the Parent Business.

          Business Day:  any day, other than a Saturday or Sunday, or a day on
which banking institutions are authorized or required by law or regulation to
close in Illinois.

          Cash: the amount reflected in the cash and marketable accounts of any
company's balance sheet as of any given date.

          CERCLA: the Comprehensive Environmental Response, Compensation and
Liability Act, as amended, 42 U.S.C. 9601 et seq.
                                          -------

          Closed Machinery Businesses: businesses, operations or products
(including related joint ventures and alliances) set forth on Schedule G-1.
                                                              ------------

          Code: as defined in the Recitals hereto.

          Consents: any consents, waivers or approvals from, or notification
requirements to, any third parties.

          Contribution: as defined in the Recitals hereto.

          Crosby Valve Businesses: as defined on attached Schedule J
                                                          ----------

          Demand: as defined in Section 9.1(a) hereof.
                                --------------

          Demand Registration: as defined in Section 9.1(a) hereof.
                                             --------------

          Demand Shares: as defined in Section 9.1(a) hereof.
                                       ---------------

          Discontinued Machinery Businesses: discontinued businesses, operations
or products (including related joint ventures and alliances) set forth on
Schedule G-2.
- ------------

          Distribution: the distribution of all issued and outstanding shares
of Parent Technologies Shares by means of Spin-Off; a Split-Off; or a
combination of a Spin-Off and a Split-Off.

                                        5
<PAGE>

          Distribution Date: the date as of which the Distribution shall be
effected, to be determined by, or under the authority of, the Board of Directors
of Parent consistent with this Agreement.

          Distribution Information Statement: as defined in Section 4.4 hereof.
                                                            -----------

          Environmental Law: any federal, state, local, foreign or international
statute, ordinance, rule, regulation, code, license, permit, authorization,
approval, consent, common law (including tort and environmental nuisance law),
legal doctrine, order, judgment, decree, injunction, requirement or agreement
with any Governmental Authority, now or hereafter in effect relating to health,
safety, pollution or the environment (including ambient air, surface water,
groundwater, land surface or subsurface strata) or to emissions, discharges,
releases or threatened releases of any substance currently or at any time
hereafter listed, defined, designated or classified as hazardous, toxic, waste,
radioactive or dangerous, or otherwise regulated, under any of the foregoing, or
otherwise relating to the manufacture, processing, distribution, use, treatment,
storage, disposal, transport or handling of any such substances, including,
without limitation, CERCLA, the Superfund Amendments and Reauthorization Act and
the Resource Conservation and Recovery Act and comparable provisions in state,
local, foreign or international law.

          Environmental Liabilities: all Losses, whether direct or indirect,
known or unknown, current or potential, past, present or future: (i) imposed by,
under or pursuant to any Environmental Law, including all Losses related to
Remedial Actions, and all fees, capital costs, disbursements and reasonable out-
of-pocket costs, fees and expenses of counsel, experts, contractors, personnel
and consultants based on, arising out of or otherwise in respect of: (A) the
applicable Business, the Real Property owned by such Business or any other
property owned, operated, used or leased by such applicable Business at any
time; or any other property where such applicable Business contracted or
arranged for disposal at any time; (B) conditions existing on, under, around or
above any such property; and (C) expenditures necessary to cause any such
property or any aspect of the applicable Business to be in compliance with any
and all requirements of Environmental Laws; and (ii) with respect of bodily
injury, personal injury or property damage arising from or relating to Releases
of Hazardous Substances.

          Exchange Act: the Securities Exchange Act of 1934, as amended,
together with the rules and regulations promulgated thereunder.

          Expected IPO Proceeds: the estimated amount of proceeds (at the
estimated IPO price) that Technologies will receive as a result of the IPO, net
of all estimated out-of-pocket fees, costs and expenses incurred in connection
with completing the Contribution and IPO (including, without limitation, legal
and accounting fees, costs and expenses, printing costs, filing, listing and
Blue Sky fees, transfer agent and registrar costs, fees and expenses, expenses,
fees and costs incurred in connection with the road show presentations and all
related meeting and travel expenses) from the underwriters, plus one-half the
net amount that would be received (at the estimated IPO price) in connection
with the full exercise of any over-allotment option.

          Final Calculation Date: April 30, 2001.

                                        6
<PAGE>

          Financing Facilities: (a) the $200,000,000 180-Day Revolving Credit
Agreement, dated as of February 21, 2001, among Parent, Technologies, Citibank,
N.A., as Administrative Agent, Salomon Smith Barney Inc., as Lead Arranger, and
the Lenders named party thereto; (b) the $250,000,000 Five-Year Credit
Agreement, dated as of April __, 2001, the Lenders named therein, as Lenders,
and Banc of America Securities LLC, as Administrative Agent and LC Issuer; and
(c) the $150,000,000 364 Day Credit Agreement, dated as of April __, 2001, the
Lenders named therein, as Lenders, Banc of America Securities LLC, as
Administrative Agent.

          FMC Logo: all trademarks, service marks, and trade names that consist
of only the term "FMC," including stylized versions thereof, and which do not
contain any other words or logos in combination therewith.

          Foreign Exchange Contracts: hedge and option arrangements entered into
by Parent in respect of the Technologies Business.

          Foreign Exchange Rate: with respect to any currency other than United
States dollars as of any date, the average closing exchange rate at which United
States dollars may be exchanged for such currency (as quoted in the Wall Street
Journal) for the twenty (20) Business Days immediately preceding the day on
which such payment is required to be made.

          Foreign Transfer Taxes: Taxes that may be imposed by any jurisdiction
other than the United States or any political subdivision thereof in connection
with the Foreign Transfers on any member of the Technologies Group or the Parent
Group.

          Foreign Transfers: as defined in Section 2.3(a) hereof.
                                           --------------

          General Liabilities: all Losses, whether direct or indirect, known or
unknown, current or potential, past, present or future, with respect to bodily
injury, personal injury, property damage or other wrongs arising from the
premises or the operations of a Discontinued Machinery Business. General
Liabilities exclude all Liabilities arising out of or in connection with
location of asbestos on the Real Property of Discontinued Machinery Businesses
and also excludes all Environmental Liabilities related to Discontinued
Machinery Businesses.

          Governmental Approvals: any notices, reports or other filings to be
made, or any consents, registrations, approvals, licenses, permits or
authorizations to be obtained from, any Governmental Authority, and any
financial instruments or assurances required to be maintained in connection with
such Governmental Approvals.

          Governmental Authority: any federal, state, local, foreign or
international court, government, department, commission, board, bureau or
agency, or any other regulatory, administrative or governmental authority,
including the NYSE.

          Group: the Parent Group or the Technologies Group.

          Hazardous Substances: any substance (including petroleum and
petroleum derivatives and products) that (i) is defined, listed or identified as
a "hazardous waste,"

                                        7
<PAGE>

"hazardous material" or "hazardous substance" under CERCLA or the Solid Waste
Disposal Act or any analogous state Law or (ii) requires investigation, removal
or remediation under an applicable Environmental Law.

          Indemnifiable Losses: all Losses suffered (and not actually reimbursed
by insurance proceeds) by an Indemnitee, including any reasonable out-of-pocket
fees, costs or expenses of enforcing any indemnity hereunder; provided that
                                                              --------
"Indemnifiable Losses" shall not include: (i) any special, indirect, incidental,
punitive or consequential damages whatsoever of any Indemnitee, including,
without limitation, damages for lost profits and lost business opportunities,
arising in connection with any Action other than any Action by any Person
(including, without limitation, any Governmental Authority) who is not a party
to this Agreement or an Affiliate or Subsidiary of such a party; or (ii) any
such Losses caused by, resulting from or arising out of the gross negligence,
willful misconduct or fraud of such Indemnitee.

          Indemnifying Party: a Person who or which is obligated under this
Agreement to provide indemnification.

          Indemnitee: a Person who or which may seek indemnification under this
Agreement.

          Indemnity Payment: an amount that an Indemnifying Party is required
to pay to or in respect of an Indemnitee pursuant to Article IV.
                                                     ----------

          Information: all records, books, contracts, instruments, computer
data and other data and information.

          Initial Calculation Date: March 31, 2001.

          Insurance Proceeds Agreement: the Insurance Proceeds Agreement
between Parent and Technologies, substantially in the form of Exhibit I hereto,
                                                              ---------
with such changes as are acceptable to Parent and Technologies.

          Intellectual Property Rights: (a) all inventions (whether patentable
or unpatentable and whether or not reduced to practice), all improvements
thereto, and all patents, patent applications, and patent disclosures, together
with all reissuances, continuations, continuations-in-part, revisions,
extensions, and reexaminations thereof; (b) all trademarks, service marks, trade
dress, logos, trade names, and corporate names, together with all translations,
adaptations, derivation, and combinations thereof and including all goodwill
associated therewith ("Marks"), including registered and unregistered Marks and
all applications, registrations, and renewals in connection with the Marks; (c)
all copyrightable works, all copyrights, and all applications, registrations,
and renewals in connection therewith, all computer software (including data and
related documentation), all websites as well as supporting HTML coding and
source code, all mask works and all applications, registrations, and renewals in
connection therewith; (d) all trade secrets and confidential information,
including ideas, research and development, know-how, proprietary processes and
formulas, compositions, manufacturing and production processes and techniques,
technical data, designs, drawings, specifications,

                                        8
<PAGE>

customer and supplier lists, pricing and cost information, and business and
marketing plans and proposals; (e) any income, royalties and payments which
accrue as of the IPO Closing or thereafter with respect to any of the foregoing
items, including payments for past, present or future infringements or
misappropriation thereof, the right to sue and recover for past infringements or
misappropriation thereof; (f) any goodwill associated with any of the foregoing;
(g) all other proprietary rights; and (h) all copies and tangible embodiments
thereof (in whatever form or medium).

          Intended Offering Notice: as defined in Section 9.2(a) hereof.
                                                  --------------

          Internal Spin-Off: that certain transaction whereby  Intermountain
Research and Development Corporation shall distribute all of the shares of FMC
International A.G. to Parent.

          IPO: as defined in the Recitals hereto.

          IPO Date: the date of the closing of the IPO in accordance with
Article III hereof and the Underwriting Agreements.
- -----------

          IPO Registration Statement: the registration statement on Form S-1 of
Technologies under the Securities Act relating to the Technologies Common Stock
to be issued in the IPO.

          Liabilities: any and all losses, claims, charges, debts, demands,
actions, causes of action, lawsuits, damages, obligations, payments, costs, fees
and expenses, sums of money, bonds, indemnities and similar obligations,
covenants, contracts, controversies, agreements, promises, omissions,
guarantees, make whole agreements and similar obligations, and other
liabilities, including all contractual obligations, whether absolute or
contingent, inchoate or otherwise, matured or unmatured, liquidated or
unliquidated, accrued or unaccrued, known or unknown, whenever arising, and
including those arising under any law, rule, regulation, Action, threatened or
contemplated Action (including the costs, fees and expenses of demands,
assessments, judgments, settlements and compromises relating thereto and out-of-
pocket attorneys' costs, fees and expenses and any and all costs and expenses
incurred in investigating, preparing or defending against any such Actions or
threatened or contemplated Actions), order or consent decree of any Governmental
Authority or any award of any arbitrator or mediator of any kind, and those
arising under any contract, commitment or undertaking, including those arising
under this Agreement or any Ancillary Agreement, in each case, whether or not
recorded or reflected or required to be recorded or reflected on the books and
records or financial statements of any Person.

          Losses: losses, Liabilities, damages, claims, demands, judgments,
fines, penalties, obligations, payments, costs, fees, expenses, Actions or
settlements of any nature or kind, including all reasonable out-of-pocket costs,
fees and expenses (legal, accounting or otherwise as such costs are incurred)
relating thereto.

          Non-Technologies Business: any business or operation of the Parent or
a Parent Subsidiary other than a Technologies Business.

                                        9
<PAGE>

          Non-Technologies Business Transfer: a transaction whereby a Non-
Technologies Business is transferred to Technologies or a Technologies
Subsidiary.

          NYSE: New York Stock Exchange, Inc.

          Parent: as defined in the Recitals hereto.

          Parent Assets: all of the Assets owned by Parent or its Subsidiaries,
other than the Technologies Assets.

          Parent Business: all businesses and operations (including related
joint ventures and alliances) of Parent, other than the Technologies Business.

          Parent Group: Parent and its Subsidiaries other than members of the
Technologies Group.

          Parent Indemnitees: Parent, each Affiliate of Parent and each of
their respective Representatives and each of the heirs, executors, successors
and assigns of any of the foregoing.

          Parent Liabilities: all of the Liabilities of Parent and its
Subsidiaries, other than the Technologies Liabilities.

          Parent Common Stock: shares of Common Stock, par value $.01 per
share, of Parent.

          Parent Subsidiaries: all direct and indirect Subsidiaries of Parent
other than Technologies and the Technologies Subsidiaries.

          Parent Technologies Shares: all issued and outstanding shares of
Technologies Common Stock owned by Parent or any member of the Parent Group.

          Person: an individual, a partnership, a joint venture, a corporation,
a limited liability company, a trust, an unincorporated organization or a
government or any department or agency thereof.

          Piggy-back Notice: as defined in Section 9.2(a) hereof.
                                           --------------

          Piggy-back Shares: as defined in Section 9.2(a) hereof.
                                           --------------

          Pre-Distribution Period: as defined in the Tax Sharing Agreement.

          Product Liabilities: all Losses, whether direct or indirect, known or
unknown, current or potential, past, present or future, with respect to bodily
injury, personal injury, property damage or other wrongs arising from the use,
consumption or services related to products of a Discontinued Machinery
Business. Product Liabilities exclude all Liabilities arising out of or in
connection with the use or manufacture of products containing asbestos by a
Discontinued Machinery Businesses.

                                       10
<PAGE>

          Real Property: real property of whatever nature, including all
easements and rights of way, servitudes, leases, subleases, permits, licenses,
options and other real property rights and interests, as an owner, mortgagee or
holder of a security interest in real property, lessor, sublessor, lessee,
sublessee or otherwise, and all rights, title and interests in and to all
buildings, fixtures and improvements thereon.

          Record Date: the close of business on the date to be determined by
the Board of Directors of Parent as the record date for determining shareholders
of Parent entitled to receive shares of Technologies Common Stock in the
Distribution.

          Registrable Shares: as defined in Section 9.3(g) hereof.
                                            --------------

          Registration Statement: as defined in Section 9.3 hereof.
                                                -----------

          Representative: with respect to any Person, any of such Person's
directors, officers, employees, agents, consultants, advisors, accountants,
attorneys and representatives.

          Release: anything defined as a "release" under CERCLA or the Solid
Waste Disposal Act.

          Remedial Action: any and all measures necessary to reduce the level of
Hazardous Substances to levels which comply with Remediation Standards.

          Remediation Standards: the least stringent standards for performing a
Remedial Action that are required pursuant to Environmental Laws applicable
where the property subject to Remedial Action is based.

          SEC: the Securities and Exchange Commission.

          Securities Act: the Securities Act of 1933, as amended, together with
the rules and regulations promulgated thereunder.

          Separation: as defined in the Recitals to this Agreement.

          Shared Facilities: Shared Regional Headquarters and any production
facilities, manufacturing sites, warehouses, distribution centers, sales
offices, data processing centers, administrative offices or other facilities
(whether owned or leased) of Parent or any of its Subsidiaries in which
operations of both the Technologies Business and the Parent Business are
conducted as at the Assumption Time, including, without limitation, those listed
on Schedule A hereto.
   ----------

          Shared Regional Headquarters: regional headquarters of Parent in
which services are provided, as at the Assumption Time, to both the Technologies
Business and the Parent Business set forth on Schedule B hereto.
                                              ----------

          Spin-Off: a special dividend by Parent of Parent Technologies Shares
on a pro rata basis to holders of shares of Parent Common Stock, other than
shares held in the treasury of Parent.

                                       11
<PAGE>

          Split-Off: an exchange offer by Parent in which holders of shares of
Parent Common Stock other than shares held in the treasury of Parent would be
offered the option of tendering all or a portion of their shares of Parent
Common Stock in exchange for Parent Technologies Shares.

          Subsidiary: with respect to any specified Person, any corporation or
other legal entity of which such Person or any of its subsidiaries controls or
owns, directly or indirectly, more than 50% of the stock or other equity
interest entitled to vote on the election of members to the board of directors
or similar governing body.

          Synthetic Lease: the transactions documented pursuant to the
Participation Agreement, dated as of December 23, 1999 (the "Participation
Agreement"), among FMC Corporation, as Lessee, Select Assets Trust I, as Lessor,
Wilmington Trust Company, not in individual capacity except as expressly stated
therein, but solely as Trustee, Advantage Asset Securitization Corp., as Note
Purchaser, the Various Liquidity Banks party from time to time to the Liquidity
Agreement referred to therein, FBTC Leasing Corp., as Certificate Holder, The
Fuji Bank and Trust Company, as Collateral Agent, and the Liquidity Agent, party
from time to time to the Liquidity Agreement referred to therein and the
Operative Documents (as defined in the Participation Agreement).

          Tax: as defined in the Tax Sharing Agreement.

          Tax Sharing Agreement: the Tax Sharing Agreement between Parent and
Technologies, substantially in the form of Exhibit B hereto, with such changes
                                           ---------
as are acceptable to Parent and Technologies.

          Technologies: as defined in the Recitals hereto.

          Technologies Assets: (1) except as expressly provided in the Ancillary
Agreements, all Assets reflected on the Technologies Balance Sheet as set forth
in the IPO Registration Statement or the accounting records supporting the
Technologies Balance Sheet and all Assets of either Group acquired between
December 31, 2000 and the Assumption Time which would have been included on the
Technologies Balance Sheet had they been owned on December 31, 2000, excluding
any Assets sold or otherwise disposed of on or prior to the Assumption Time; (2)
all Assets primarily related to the Technologies Business at the Assumption Time
that are owned, leased, licensed or held by any member of either Group at the
Assumption Time; (3) all Real Property held by members of either Group primarily
used in the Technologies Business; (4) all of the outstanding shares of all
classes of capital stock or similar interests of the Technologies Subsidiaries
to the extent owned by any member of the Parent Group and the partnership, joint
venture, limited liability companies, limited liability partnerships and other
equity interests and interests in consortia, alliances and similar arrangements
primarily related to the Technologies Business, including, without limitation,
those shares of capital stock and other interests listed on Schedule D; (5) the
                                                            ----------
rights of Technologies under any insurance policies and insurance contracts as
provided in any Ancillary Agreement; (6) all computers, desks, furniture,
equipment and other assets used primarily by employees of Parent who will become
employees of Technologies pursuant to the Benefits Agreement; (7) all right,
title and interest in and to all Foreign Exchange Contracts entered into in
connection with

                                       12
<PAGE>

the Technologies Business; and (8) all right, title and interest in and to all
the Synthetic Lease; (9) all of the Assets listed on Schedule E; provided that:
                                                     ----------  --------

          (a)  Intellectual Property Rights shall be Technologies Assets in the
     form and to the extent provided in Section 2.1(d); and
                                        --------------

          (b)  Technologies Assets shall not include the Assets set forth on
     Schedule F.
     ----------

          Technologies Balance Sheet: the audited combined balance sheet of
Technologies as of December 31, 2000, and the notes thereto, as set forth in the
IPO Registration Statement.

          Technologies Business: (1) all businesses, operations or products
(including related joint ventures and alliances) of the Energy Systems and
Specialty Systems businesses of Parent and its Subsidiaries and Affiliates
(whether or not currently owned, used or occupied by the Parent and its
Subsidiaries or Affiliates) as of December 31, 2000; (2) all Closed Machinery
Businesses; and (3) any business, operation or product line acquired or created
by any member of the Energy Systems and Specialty Systems business at any time
after December 31, 2000.

          Technologies Common Stock: as defined in the Recitals to this
Agreement.

          Technologies Group: Technologies and the Technologies Subsidiaries.

          Technologies Indemnitees: Technologies, each Affiliate of Technologies
and each of their respective Representatives and each of the heirs, executors,
successors and assigns of any of the foregoing.

          Technologies Liabilities: (1) except as expressly provided in the
Ancillary Agreements, all Liabilities reflected on the Technologies Balance
Sheet as set forth in the IPO Registration Statement or the accounting records
supporting such Technologies Balance Sheet and all Liabilities of either Group
incurred or arising between December 31, 2000 and the Assumption Time which
would have been included on the Technologies Balance Sheet had they been
incurred or arisen on or prior to December 31, 2000, excluding those Liabilities
(or portions thereof) that have been satisfied, paid or discharged prior to the
Assumption Time; (2) except as expressly provided in the Ancillary Agreements,
all Liabilities relating primarily to or arising primarily from the Technologies
Assets or the Technologies Business, whether incurred or arising prior to, on or
after the Assumption Time; (3) all Liabilities assumed by any member of the
Technologies Group under an express provision of this Agreement or any Ancillary
Agreement; (4) all Auto Liabilities, General Liabilities and Product Liabilities
of the Discontinued Machinery Businesses; and (5) all Environmental Liabilities
primarily related to the Technologies Business, Real Property transferred to the
Technologies Group as part of the Technologies Assets or any other property
owned, operated, used or leased in the course of operating any Technologies
Business at any time or any other property where the Technologies Business
contracted or arranged for disposal at any time (except that any Environmental
Liabilities related to sites where both a Parent Business and a Technologies
Business are liable shall be allocated between such Business based on the pro
rata contribution of each Business); (6) all Liabilities related to or incurred
in the manufacture of products of the Technologies Business sold to Third
Parties by any member of either Group; (7) all Liabilities under the Financing
Facilities and the Synthetic Lease; (8) Liabilities for Taxes in the amount of

                                       13

<PAGE>

$8,828,965 in excess of that amount specifically allocated under the Tax Sharing
Agreement; (9) all Liabilities of the Technologies Group arising under this
Agreement; provided, that Technologies Liabilities shall not, in any event,
           --------
include the Liabilities set forth on Schedule H.
                                     ----------

          Technologies Rights: the preferred share purchase rights of
Technologies to be issued pursuant to the Technologies Rights Plan.

          Technologies Rights Plan: the Preferred Share Purchase Rights
Agreement of Technologies, substantially in the form of Exhibit F hereto, with
                                                        ---------
such changes as are acceptable to Parent and Technologies.

          Technologies Subsidiaries: all direct and indirect Subsidiaries of
Technologies, including foreign subsidiaries of Technologies to be transferred
to or to be formed in connection with the Separation and the Foreign Transfers
and any Subsidiary to be formed on or after the date hereof or Section 2.3
                                                               -----------
hereof, including the Subsidiaries set forth on Schedule I hereto.
                                                ----------

          Third-Party Claim: any claim, lawsuit, derivative suit, arbitration,
inquiry, proceeding or investigation by or before any court, any governmental or
other regulatory or administrative agency or commission or any arbitration
tribunal asserted by a Person who or which is neither a party hereto nor an
Affiliate of a party hereto.

          Trademark License Agreement: the Trademark License Agreement between
Parent and Technologies, substantially in the form of Exhibit H, with such
                                                      ---------
changes as are acceptable to Parent and Technologies.

          Transition Services Agreement: the Transition Services Agreement
between Parent and Technologies, substantially in the form of Exhibit C hereto,
                                                              ---------
with such changes as are acceptable to Parent and Technologies.

          Underwriting Agreements: the U.S. purchase agreement to be entered
into between Technologies and the United States managing underwriters and the
international purchase agreement to be entered into between Technologies and the
international underwriters in each case with respect to the IPO.

          U.S. Transfer Taxes: any tax, charge, duty, impost or levy (including
any penalties and interest thereon) imposed by the United States or any
subdivision thereof in connection with the Contribution.

          SECTION 1.2  References to Time.  All references in this Agreement
                       ------------------
to times of the day shall be to City of Chicago time.

                                   ARTICLE II

                                THE CONTRIBUTION

          SECTION 2.1  Contribution.  (a)  On or prior to the Assumption Time
                       ------------
but subject to Section 2.2 and Section 2.3, Parent shall assign, transfer,
               -----------     -----------
convey and deliver, or cause to be assigned, transferred, conveyed or delivered,
to Technologies or, at Technologies' option,

                                       14
<PAGE>

to a Technologies Subsidiary all of Parent's and its Subsidiaries' respective
rights, title and interests in all Technologies Assets. Effective as at the
Assumption Time, the transfers described in this Section will result in
Technologies or another member of the Technologies Group obtaining all of the
rights, title and interests of Parent and its Subsidiaries in the Technologies
Assets, subject to Section 2.4 and Section 2.5.
                   -----------     -----------

          (b)  Effective as at the Assumption Time and subject to Section 2.2
                                                                  -----------
and Section 2.3, Technologies shall, or shall cause a Technologies Subsidiary
    -----------
to, assume, pay, perform and discharge in due course all of the Technologies
Liabilities in accordance with their respective terms.

          (c) Separation of Assets. The Technologies Assets (including Assets
that are, or are contained in, the Shared Facilities) shall, to the extent
reasonably practicable (including taking into account the costs of any actions
taken), be severed, divided or otherwise separated from the Parent Assets so
that members of the Technologies Group will own and control the Technologies
Assets as at the Assumption Time and members of the Parent Group will own and
control the Parent Assets as at the Assumption Time. Such separation may include
subdivision of real property, subleasing or other division of shared buildings
or premises and allocation of shared working capital, equipment and other
Assets. Such separation shall be effected in a manner that does not unreasonably
disrupt either the Technologies Business or the Parent Business and minimizes,
to the extent practicable, current and future costs (and losses of Tax or other
economic benefits) of the respective Businesses. With respect to any Asset that
cannot reasonably be separated or otherwise allocated as provided above (i) all
right, title and interest of Parent and the Parent Subsidiaries shall be
allocated to the Group as to which such Asset is predominantly used or held for
use or predominantly relates and (ii) the other Group shall have a right to use
such Asset in its Business in a manner consistent with past practice for a
period which is coterminous with the life of the Asset described in (i) (and the
coextensive obligation to pay its allocable share of any costs or expenses
related to such Asset pursuant to the last sentence of this Section 2.1(c)). To
                                                            --------------
the extent the separation of Assets cannot be achieved in a reasonably
practicable manner, the parties will enter into appropriate arrangements
regarding such shared Asset. Any costs related to the use of a shared Asset that
is not separated as at the Assumption Time shall be allocated based on the
methodology historically used by Parent.

          (d) Intellectual Property. Notwithstanding the foregoing or anything
else contained herein, any Intellectual Property Rights of Parent or any of its
Subsidiaries shall be licensed to or assigned, transferred or conveyed to
Technologies, as the case may be, as follows:

          (1)  With respect to Intellectual Property Rights used or held for use
               primarily in connection with the Technologies Business
               ("Technologies Group IP"), including but not limited to the
                 ---------------------
               Intellectual Property Rights listed in Schedule 2.1(d),
                                                      ---------------
               Technologies shall have full ownership (to the extent of Parent's
               rights therein) of such rights;

                                       15
<PAGE>

          (2)  Except as otherwise provided in Schedule 2.1(d), with respect to
                                               ---------------
               Technologies Group IP used or held for use in both the
               Technologies Business and the Parent Business on or before the
               Assumption Time, the Parent Group shall have a non-exclusive,
               worldwide, fully-paid, perpetual, royalty-free license, with the
               right to grant sublicenses in the ordinary course of an on-going
               business, to all rights therein only to the extent it was used or
               held for use by the Parent Business on or before the Assumption
               Time.

          (3)  Except as otherwise provided in Schedule 2.1(d), with respect to
                                               ---------------
               Intellectual Property Rights other than Technologies Group IP
               that are used or held for use in both the Technologies Business
               and the Parent Business on or before the Assumption Time, title
               to such rights shall be owned by the Parent Group, and the
               Technologies Group shall have a non-exclusive, worldwide, fully-
               paid, perpetual, royalty-free license, with the right to grant
               sublicenses in the ordinary course of an ongoing business, to all
               rights in the Intellectual Property Rights only to the extent it
               was used or held for use by the Technologies Business on or
               before the Assumption Time.

          (4)  The licenses specified in this Section shall not restrict the
               subsequent transfer or license by the licensee (within the
               applicable field of use) of the Intellectual Property Rights.

          (e) Notwithstanding the foregoing or anything else contained herein,
the transfer of the Technologies Assets, and assumption of the Technologies
Liabilities, primarily related to FranRica Systems located in Stockton,
California and Food Process Systems located in Madera, California shall be
effected as provided in the California Separation and Transfer Agreement
attached as Exhibit G.
            ---------

          (f) The fees, costs and expenses (and other out-of-pocket losses)
attributable to the Contribution shall be allocated pursuant to Schedule 2.1(f).
                                                                ---------------

          SECTION 2.2  Conditions Precedent to Consummation of the
                       -------------------------------------------
Contribution.  The obligations of the parties to consummate the Contribution
- ------------
shall be conditioned on the satisfaction, or waiver by Parent, of the following
conditions:

          (a)  Final approval of the Contribution shall have been given by the
Board of Directors of Parent in its sole discretion; and

          (b) The conditions precedent to the consummation of the IPO set forth
in Section 3.4 hereof shall have been satisfied or waived pursuant to such
   -----------
Section 3.4.
- -----------

          SECTION 2.3  Certain Foreign Transfers.  (a) Parent shall use its
                       -------------------------
reasonable best efforts to effect the legal separation of the Technologies
Assets and Technologies Liabilities, on the one hand, from the Parent Assets and
Parent Liabilities, on the other hand, that are located in jurisdictions outside
the United States prior to or at the Assumption Time. If all of the transactions
necessary to effectuate such legal separation in jurisdictions outside the
United

                                       16
<PAGE>

States are not completed on or before the Assumption Time, and such failure
delays the legal separation of such Technologies Assets and Technologies
Liabilities, on one hand, from Parent Assets and Parent Liabilities, on the
other hand, within the United States, then Parent shall use its reasonable best
efforts to complete such legal separation as soon as practicable at the
Assumption Time or as promptly as practicable thereafter. Such separation shall
be effected pursuant to the transactions (including asset transfers, stock
transfers, spin-offs, mergers, demergers, reorganizations, consolidations and
other transfers) set forth on Schedule 2.3(a) hereto, which may be effected
                              ---------------
before, simultaneously with or after the consummation of the IPO as described on
such Schedule (collectively, the "Foreign Transfers"). Any Foreign Transfer that
                                  -----------------
occurs after the Assumption Time shall be effected pursuant to a binding
commitment in existence at the Assumption Time.

          (b)  The Foreign Transfer Taxes and U.S. Transfer Taxes shall be borne
by Technologies.

          (c) If, in order to complete a material Foreign Transfer of
Technologies Assets and Technologies Liabilities, prior to the Assumption Time
it becomes necessary to make a Non-Technologies Business Transfer, then as
promptly as practicable following the Non-Technologies Business Transfer,
Technologies shall, or shall cause the member of the Technologies Group, to
transfer the Non-Technologies Business to Parent. Technologies shall remit to
Parent, or the appropriate member of the Parent Group as directed by Parent, all
cash flows generated by any Non-Technologies Business from and including the
Assumption Time to and including the date of such transfer. In addition,
Technologies shall bear all Foreign Transfer Taxes associated with transferring
any Non-Technologies Business back to Parent.

          (d) Notwithstanding anything herein to the contrary, to the extent
that as a result of any of the Foreign Transfers, goodwill or other non-patented
intangible property of the Technologies Business remains in the Parent or any
member of Parent Group, then Parent shall, and shall cause any member of Parent
Group to, (i) undertake all reasonable action to ensure that such goodwill or
non-patented intellectual property is transferred to Technologies as promptly as
practicable; and (ii) until such transfer is completed, neither Parent nor any
Parent Subsidiaries shall use such goodwill or non-patented intellectual
property.

          (e) Notwithstanding anything herein to the contrary, to the extent
that as a result of any of the Foreign Transfers, goodwill or other non-patented
intangible property related to any business other than the Technologies Business
remains in Technologies or any member of Technologies Group, then Technologies
shall, and shall cause any member of Technologies Group to, (i) undertake all
reasonable action to ensure that such goodwill or other non-patented
intellectual property is transferred to Parent as promptly as practicable; and
(ii) until such transfer is completed, neither Technologies nor any Technologies
Subsidiaries shall use such goodwill or non-patented intellectual property.

          SECTION 2.4  Ancillary Agreements.  (a)  Each of Parent and
                       --------------------
Technologies shall, on or prior to the IPO Date, enter into, or cause the
appropriate members of the Group of which it is a member to enter into, the
Ancillary Agreements in connection with the Separation, including, without
limitation, (i)(A) such bills of sale, stock powers, certificates of title,
assignments of contracts and other instruments of transfer, conveyance and
assignment as and to

                                       17
<PAGE>

the extent necessary to evidence the transfer, conveyance and assignment
(including the Foreign Transfers) of all of Parent's and its respective
Subsidiaries' right, title and interest in and to the Technologies Assets to
Technologies or a Technologies Subsidiary pursuant to Section 2.1 and (B) such
                                                      -----------
bills of sale, stock powers, certificates of title, assumptions of contracts and
other instruments of assumption as and to the extent necessary to evidence the
valid and effective assumption of the Technologies Liabilities by Technologies
or a Technologies Subsidiary pursuant to Section 2.1, and (ii) agreements with
                                         -----------
respect to (A) insurance procedures, (B) transition services pursuant to the
Transition Services Agreement or any appropriate foreign transition services
agreement, (C) intellectual property licenses as contemplated by Section 2.1(d),
                                                                 --------------
(D) the Tax Sharing Agreement; (E) the Benefits Agreement, (F) the Trademark
License Agreement, (G) an agreement relating to certain transfers and
assumptions contemplated by Section 2.1(e), and (H) other matters as may be
                            --------------
advisable. The Ancillary Agreements (or, in the case of the forms of agreement
attached hereto, any amendments thereto) shall be on terms reasonably acceptable
to Parent and Technologies.

          (b) The parties acknowledge and agree that operation by members of the
Parent Group or Technologies Group of the Shared Facilities after the Assumption
Time may continue to require the joint occupation or use by the parties of
certain related premises or facilities (such as waste disposal, utilities,
security and other matters). The parties shall enter into appropriate
arrangements regarding cost allocation and service provision with respect to
these matters, which allocation shall be as described in Section 2.1(f). The
                                                         --------------
agreements described in this paragraph (b) shall be included in the Ancillary
Agreements.

          SECTION 2.5  Transfers Not Effected Prior to the Separation;
                       -----------------------------------------------
Transfers Deemed Effective as at the Assumption Time.  To the extent that any
- ----------------------------------------------------
transfers contemplated by this Article II shall not have been consummated at the
                               ----------
Assumption Time, including, without limitation, any Foreign Transfers, the
parties shall cooperate to effect such transfers as promptly following the
Assumption Time as shall be practicable. Nothing herein shall be deemed to
require the transfer of any Assets or the assumption of any Liabilities which by
their terms or operation of law cannot be transferred or assumed; provided,
                                                                  --------
however, that Parent and Technologies and their respective Subsidiaries shall
- -------
cooperate to obtain any necessary consents or approvals for the transfer of all
Assets and Liabilities contemplated to be transferred pursuant to this Article
                                                                       -------
II.  In the event that any such transfer of Assets or Liabilities has not been
- --
consummated effective as of and after the Assumption Time, the party retaining
such Asset or Liability shall thereafter hold such Asset in trust for the use
and benefit of the party entitled thereto (at the expense of the party entitled
thereto) and retain such Liability for the account of the party by whom such
Liability is to be assumed pursuant hereto, and take such other action as may be
reasonably requested by the party to which such Asset is to be transferred, or
by whom such Liability is to be assumed, as the case may be, in order to place
such party, insofar as reasonably possible, in the same position as would have
existed had such Asset or Liability been transferred as contemplated hereby. As
and when any such Asset or Liability becomes transferable, such transfer shall
be effected forthwith. The parties agree that, as at the Assumption Time, each
party hereto shall be deemed to have acquired complete and sole beneficial
ownership over all of the Assets, together with all rights, powers and
privileges incident thereto, and shall be deemed to have assumed in accordance
with the terms of this Agreement all of the Liabilities, and all duties,
obligations and responsibilities incident thereto,

                                       18
<PAGE>

which such party is entitled to acquire or required to assume pursuant to the
terms of this Agreement.

          SECTION 2.6  Assumption of Debt.  On or before the Assumption Time,
                       ------------------
Parent and Technologies shall jointly determine the amount that should be drawn
down under the Financing Facilities and assumed by Technologies as provided in
Schedule 2.6.
- ------------

          SECTION 2.7  Certificate of Incorporation; By-laws; Rights Plan.
                       --------------------------------------------------
Prior to the consummation of the IPO, Parent and Technologies shall take all
action necessary so that the Amended and Restated Certificate of Incorporation,
the Amended and Restated By-laws and the Technologies Rights Plan shall be in
effect prior to the closing of the IPO, each substantially in the form of
Exhibits D, E and F hereto, respectively (with such changes as Parent and
- ----------  --    --
Technologies may find acceptable).

                                   ARTICLE III

                       THE IPO AND ACTIONS PENDING THE IPO

          SECTION 3.1  Transactions Prior to the IPO.  Subject to the
                       -----------------------------
conditions specified in Section 3.4, Parent and Technologies shall use their
                        -----------
reasonable best efforts to take all actions necessary to consummate the IPO.

          SECTION 3.2  Proceeds.  The IPO will be a primary offering of
                       --------
Technologies Common Stock and the net proceeds of the IPO will be used by
Technologies to reduce the amount of indebtedness under the Financing
Facilities.

          SECTION 3.3  Costs and Expenses.  Technologies shall pay all third
                       ------------------
party costs, fees and expenses relating to the IPO and Contribution, all of the
reimbursable expenses of the managing underwriters pursuant to the Underwriting
Agreements, all of the costs of producing and filing the IPO Registration
Statement and printing, mailing and otherwise distributing the prospectus
contained in the IPO Registration Statement, as well as the underwriters'
discount as provided in the Underwriting Agreements.

          SECTION 3.4  Conditions Precedent to Consummation of the IPO.  The
                       -----------------------------------------------
obligations of the parties to consummate the IPO shall be conditioned on the
satisfaction, or waiver by Parent, of the following conditions:

          (a) Final approval of the IPO shall have been given by the Board of
     Directors of Parent in its sole discretion.

          (b) The IPO Registration Statement shall have been filed and declared
     effective by the SEC, and there shall be no stop-order in effect with
     respect thereto.

          (c) The actions and filings necessary or appropriate under state
     securities and Blue Sky laws of the United States (and any comparable laws
     under any foreign jurisdictions) in connection with the IPO shall have been
     taken and, where applicable, have become effective or been accepted.

                                       19
<PAGE>

          (d) The Technologies Common Stock to be issued in the IPO shall have
     been accepted for listing on the NYSE, on official notice of issuance.

          (e) Technologies shall have entered into the Underwriting Agreements
     and all conditions to the obligations of Technologies and the managing
     underwriters shall have been satisfied or waived.

          (f) No order, injunction or decree issued by any court or agency of
     competent jurisdiction or other legal restraint or prohibition preventing
     the consummation of the Separation, the Contribution, the IPO or the
     Distribution or any of the other transactions contemplated by this
     Agreement or any Ancillary Agreement shall be in effect.

          (g)  This Agreement shall not have been terminated.

          (h) All Consents and Governmental Approvals required in connection
     with the Contribution and the IPO shall have been received, except where
     the failure to obtain such consents or approvals would not have a material
     adverse effect on either (A) the ability of the parties to consummate the
     transactions contemplated by this Agreement and the Ancillary Agreements or
     (B) the business, assets, liabilities, financial condition or results of
     operations of Technologies and its Subsidiaries, taken as a whole.

                                   ARTICLE IV

                                THE DISTRIBUTION

          SECTION 4.1  Record Date and Distribution Date.  Subject to the
                       ---------------------------------
satisfaction of the conditions set forth in Section 4.6, the Board of Directors
                                            -----------
of Parent shall establish the Record Date and the Distribution Date, as
applicable, and any appropriate procedures in connection with a Distribution.

          SECTION 4.2  The Agent.  Prior to the Distribution Date, Parent shall
                       ---------
enter into an agreement with the Agent providing for, among other things, the
completion of the Distribution in accordance with this Article IV.
                                                       ----------

          SECTION 4.3  Delivery of Share Certificates to the Agent.  Prior to
                       -------------------------------------------
the Distribution Date, Parent shall deliver to the Agent a share certificate
representing (or authorize the related book-entry transfer of) all of the
outstanding shares of Technologies Common Stock to be distributed in connection
with the completion of the Distribution. After the Distribution Date, upon the
request of the Agent, Technologies shall provide all certificates for shares (or
book-entry transfer authorizations) of Technologies Common Stock that the Agent
shall require in order to effectuate the Distribution.

          SECTION 4.4  Actions Prior to the Distribution.  (a)  Parent and
                       ---------------------------------
Technologies shall prepare and mail, to holders of Parent Common Stock, such
information concerning Technologies and its business, operations and management,
the Distribution and such other matters as Parent shall reasonably determine and
as may be required by law, including the Securities Act and Exchange Act, if
applicable (the "Distribution Information Statement"). Parent and Technologies
                 ----------------------------------
will prepare, and, to the extent required under applicable law, file with

                                       20
<PAGE>

the SEC such Distribution Information Statement and any requisite no-action
letters which Parent determines are necessary or desirable to effectuate the
Distribution and Parent and Technologies shall each use their respective
reasonable best efforts to obtain all necessary approvals from the SEC with
respect thereto, if any, as soon as practicable.

          (b) Parent and Technologies shall take all such action as Parent may
determine necessary or appropriate under state securities or blue sky laws of
the United States (and any comparable laws under any foreign jurisdiction) in
connection with the Distribution.

          SECTION 4.5  The Distribution.  (a) Subject to the terms and
                       ----------------
conditions of this Agreement, in the event that Distribution is effected by
means of a Spin-Off, each holder of Parent Common Stock on the Record Date (or
such holder's designated transferee or transferees) will be entitled to receive
in the Distribution a number of shares of Technologies Common Stock equal to the
number of shares of Parent Common Stock held by such holder on the Record Date
multiplied by a fraction, the numerator of which is the number of shares of
Technologies Common Stock beneficially owned by Parent or any other member of
the Parent Group on the Record Date (after giving effect to the IPO) and the
denominator of which is the number of shares of Parent Common Stock outstanding
on the Record Date.

          (b) Subject to the terms and conditions of this Agreement, in the
event that the Distribution is effected by means of a Split-Off, Parent shall
determine in its discretion the exchange ratio that provides for the number of
Parent Technologies Shares to be offered per share of Parent Common Stock in
such Split-Off.

          (c) No certificates representing fractional shares of Technologies
Common Stock shall be distributed in the Distribution. Parent shall direct the
Agent (1) to determine the number of whole shares and fractional shares of
Technologies Common Stock to be issued in the Distribution as soon as
practicable after such determination is feasible and (2) as soon as practicable
thereafter to aggregate all such fractional shares and sell the whole shares
obtained thereby in open market transactions or otherwise, in each case at then
prevailing trading prices, and to cause to be distributed to the holders of
Parent Common Stock entitled to receive such proceeds in lieu of fractional
shares an amount in cash equal to such holder's ratable share of the proceeds of
such sale, without interest, after making appropriate deductions of the amount
required to be withheld for federal income tax purposes and after deducting an
amount equal to all brokerage charges, commissions and transfer taxes attributed
to such sale.

          SECTION 4.6  Conditions to Obligations.  The obligations of the
                       -------------------------
parties hereto to consummate the Distribution are subject to the satisfaction,
or waiver by Parent, of each of the following conditions:

          (a) Final approval of the Distribution shall have been given by the
     Board of Directors of Parent in its sole discretion.

          (b) The actions and filings necessary or appropriate under federal and
     state securities laws and state blue sky laws of the United States (and any
     comparable laws under any foreign jurisdictions) in connection with the
     Distribution (including, if

                                       21
<PAGE>

     applicable, any actions and filings relating to the Distribution
     Information Statement) shall have been taken and, where applicable, have
     become effective or been accepted.

          (c) The Technologies Common Stock to be issued in the Distribution
     shall have been accepted for listing on the NYSE, subject to official
     notice of issuance.

          (d) No order, injunction or decree issued by any court or agency of
     competent jurisdiction or other legal restraint or prohibition preventing
     the consummation of the Separation, the Contribution, the IPO or the
     Distribution or any of the other transactions contemplated by this
     Agreement or any Ancillary Agreement shall be in effect.

          (e) A private letter ruling from the Internal Revenue Service, in form
     and substance satisfactory to Parent, shall have been obtained, and shall
     continue in effect, to the effect that no gain or loss will be recognized
     by Parent, Technologies, or Parent's or Technologies' shareholders for
     federal income tax purposes as a result of (i) the IPO; (ii) the
     Distribution, (iii) the Contribution; and (iv) the Internal Spin-Off.

          (f) All Consents and Governmental Approvals required in connection
     with the transactions contemplated hereby shall have been received, except
     where the failure to obtain such consents or approvals would not have a
     material adverse effect on either (A) the ability of the parties to
     consummate the transactions contemplated by this Agreement and the
     Ancillary Agreements or (B) the business, assets, liabilities, financial
     condition or results of operations of Technologies and its Subsidiaries,
     taken as a whole.

          (g)  Any adjustment to be made pursuant to Section 2.6 shall have been
                                                     -----------
     agreed upon by Parent and Technologies.

          (h)  This Agreement shall not have been terminated.

          SECTION 4.7  Costs and Expenses.  Parent shall pay all third party
                       ------------------
costs, fees and expenses relating to the Distribution.

          SECTION 4.8  Satisfaction or Waiver.  Any determination made by the
                       ----------------------
Board of Directors of Parent on behalf of such party hereto prior to the
Distribution Date concerning the satisfaction or waiver of any or all of the
conditions set forth in this Section 4.8 shall be conclusive.
                             -----------

                                    ARTICLE V

                          SURVIVAL AND INDEMNIFICATION

          SECTION 5.1  Survival of Agreements.  All covenants and agreements
                       ----------------------
of the parties contained in this Agreement shall survive each of the
Contribution, the IPO and the Distribution.

          SECTION 5.2  Indemnification.  (a)  Except as specifically otherwise
                       ---------------
provided in the Ancillary Agreements and without regard as to when any transfer,
sale, disposition or other conveyance (including, without limitation, the
Foreign Transfers) is completed, from and

                                       22
<PAGE>

after Assumption Time the Parent Group shall indemnify, defend and hold harmless
the Technologies Indemnitees from and against (i) all Indemnifiable Losses
relating to, arising out of or resulting from the failure of any member of the
Parent Group (x) to pay, perform or otherwise promptly discharge any Parent
Liabilities (including, without limitation, all Liabilities specifically
excluded from the definition of Technologies Liabilities herein), whether such
Indemnifiable Losses relate to events, occurrences or circumstances occurring or
existing, or whether such Indemnifiable Losses are asserted, before or after the
Distribution Date, or (y) to perform any of its obligations under this Agreement
(including the obligation to effect the transfers as provided in the last
sentence of Section 2.1(a)); and (ii) all Indemnifiable Losses relating to,
            ---------------
arising out of or resulting from the Parent Business and any Parent Liability.

          (b) Except as specifically otherwise provided in the Ancillary
Agreements and without regard as to when any transfer, sale, disposition or
other conveyance (including, without limitation, the Foreign Transfers) is
completed, from and after the Assumption Time, the Technologies Group shall
indemnify, defend and hold harmless the Parent Indemnitees from and against (i)
all Indemnifiable Losses relating to, arising out of or resulting from the
failure of any member of the Technologies Group (x) to pay, perform or otherwise
promptly discharge any Technologies Liabilities, whether such Indemnifiable
Losses relate to events, occurrences or circumstances occurring or existing, or
whether such Indemnifiable Losses are asserted, before or after the Distribution
Date, or (y) to perform any of its obligations under this Agreement; (ii) all
Indemnifiable Losses relating to, arising out of or resulting from the
Technologies Business and any Technologies Liability; and (iii) all
Indemnifiable Losses arising out of or based upon any untrue statement or
alleged untrue statement of a material fact, or omission or alleged omission to
state a material fact required to be stated, in any portion of the IPO
Registration Statement or the Distribution Information Statement (or any
preliminary or final form thereof or any amendment thereto), or necessary to
make the statements therein not misleading.

          (c) If any Indemnity Payment required to be made hereunder or under
any Ancillary Agreement is denominated in a currency other than United States
dollars, such payment shall be made in United States dollars and the amount
thereof shall be computed using the Foreign Exchange Rate for such currency
determined as of the date on which such Indemnity Payment is made.

          SECTION 5.3 Procedures for Indemnification for Third-Party Claims.
                       -----------------------------------------------------
(a) Parent shall, and shall cause the other Parent Indemnitees to, notify
Technologies in writing promptly after learning of any Third-Party Claim for
which any Parent Indemnitee intends to seek indemnification from Technologies
under this Agreement. Technologies shall, and shall cause the other Technologies
Indemnitees to, notify Parent in writing promptly after learning of any
Third-Party Claim for which any Technologies Indemnitee intends to seek
indemnification from Parent under this Agreement. The failure of any Indemnitee
to give such notice shall not relieve any Indemnifying Party of its obligations
under this Article V except to the extent that such Indemnifying Party or its
           ---------
Affiliate is actually prejudiced by such failure to give notice. Such notice
shall describe such Third-Party Claim in reasonable detail considering the
Information provided to the Indemnitee.

          (b)  Except as otherwise provided in paragraph (c) of this Section
                                                                     -------
5.3, an Indemnifying Party may, by notice to the Indemnitee and to Parent, if
- ---
Technologies is the

                                       23
<PAGE>

Indemnifying Party, or to the Indemnitee and Technologies, if Parent is the
Indemnifying Party, at any time after receipt by such Indemnifying Party of such
Indemnitee's notice of a Third-Party Claim, undertake (itself or through another
member of the Group of which the Indemnifying Party is a member) the defense or
settlement of such Third-Party Claim. If an Indemnifying Party undertakes the
defense of any Third-Party Claim, such Indemnifying Party shall thereby admit
its obligation to indemnify the Indemnitee against such Third-Party Claim, and
such Indemnifying Party shall control the investigation and defense or
settlement thereof, and the Indemnitee may not settle or compromise such Third-
Party Claim, except that such Indemnifying Party shall not (i) require any
Indemnitee, without its prior written consent, to take or refrain from taking
any action in connection with such Third-Party Claim, or make any public
statement, which such Indemnitee reasonably considers to be against its
interests, or (ii) without the prior written consent of the Indemnitee and of
Parent, if the Indemnitee is a Parent Indemnitee, or the Indemnitee and of
Technologies, if the Indemnitee is a Technologies Indemnitee, consent to any
settlement that does not include as a part thereof an unconditional release of
the Indemnitees from liability with respect to such Third-Party Claim or that
requires the Indemnitee or any of its Representatives or Affiliates to make any
payment that is not fully indemnified under this Agreement or to be subject to
any non-monetary remedy; and subject to the Indemnifying Party's control rights,
as specified herein, the Indemnitees may participate in such investigation and
defense, at their own expense. Following the provision of notices to the
Indemnifying Party, until such time as an Indemnifying Party has undertaken the
defense of any Third-Party Claim as provided herein, such Indemnitee shall
control the investigation and defense or settlement thereof, without prejudice
to its right to seek indemnification hereunder.

          (c) If an Indemnitee reasonably determines that there may be legal
defenses available to it that are different from or in addition to those
available to its Indemnifying Party which make it inappropriate for the
Indemnifying Party to undertake the defense or settlement thereof, then such
Indemnifying Party shall not be entitled to undertake the defense or settlement
of such Third-Party Claim; and counsel for the Indemnifying Party shall be
entitled to conduct the defense of such Indemnifying Party and counsel for the
Indemnitee (selected by the Indemnitee) shall be entitled to conduct the defense
of such Indemnitee, it being understood that both such counsel shall cooperate
with each other to conduct the defense or settlement of such action as
efficiently as possible.

          (d) In no event shall an Indemnifying Party be liable for the costs,
fees and expenses of more than one counsel for all Indemnitees (in addition to
its own counsel, if any) in connection with any one action, or separate but
similar or related actions, in the same jurisdiction arising out of the same
general allegations or circumstances.

          (e) Technologies shall, and shall cause the other Technologies
Indemnitees to, and Parent shall, and shall cause the other Parent Indemnitees
to, make available to each other, their counsel and other Representatives, all
information and documents reasonably available to them which relate to any
Third-Party Claim, and otherwise cooperate as may reasonably be required in
connection with the investigation, defense and settlement thereof, subject to
the terms and conditions of a mutually acceptable joint defense agreement. Any
joint defense agreement entered into by Technologies or Parent with any third
party relating to any Third-Party Claim shall provide that Technologies or
Parent may, if requested, provide information obtained through any such
agreement to the Technologies Indemnitees and/or the Parent Indemnitees.

                                       24
<PAGE>

          SECTION 5.4  Remedies Cumulative.  The remedies provided in this
                       -------------------
Article V shall be cumulative and shall not preclude assertion by any Indemnitee
- ---------
of any other rights or the seeking of any other remedies against any
Indemnifying Party.  However, the procedures set forth in Section 5.3 shall be
                                                          -----------
the exclusive procedures governing any indemnity action brought under this
Agreement, except as otherwise specifically provided in any of the Ancillary
Agreements.

                                   ARTICLE VI

                          CERTAIN ADDITIONAL COVENANTS

          SECTION 6.1  Notices to Third Parties.  In addition to the actions
                       ------------------------
described in Section 6.2, the members of the Parent Group and the members of the
             -----------
Technologies Group shall cooperate to make all other filings and give notice to
and obtain any Consent or Governmental Approval that may reasonably be required
to consummate the transactions contemplated by this Agreement and the Ancillary
Agreements.

          SECTION 6.2  Licenses and Permits.  Each party hereto shall cause
                       --------------------
the appropriate members of its Group to prepare and file with the appropriate
Governmental Authorities applications for the transfer or issuance, as may be
necessary or advisable in connection with the transactions contemplated by this
Agreement and the Ancillary Agreements, to its Group of all material
Governmental Approvals required for the members of its Group to operate its
Business after the Assumption Time. The members of the Technologies Group and
the members of the Parent Group shall cooperate and use all reasonable efforts
to secure the transfer or issuance of the Governmental Approvals.

          SECTION 6.3  Intercompany Agreements; Intercompany Accounts.  (a)
                       ----------------------------------------------
All contracts, licenses, agreements, commitments or other arrangements, formal
or informal, between any member of the Parent Group, on the one hand, and any
member of the Technologies Group, on the other hand, in existence as at the
Assumption Time, pursuant to which any member of either Group makes payments in
respect of Taxes to any member of the other Group or provides to any member of
the other Group goods or services (including, without limitation, management,
administrative, legal, financial, accounting, data processing, insurance or
technical support), or the use of any Assets of any member of the other Group,
or the secondment of any employee, or pursuant to which rights, privileges or
benefits are afforded to members of either Group as Affiliates of the other
Group, shall terminate effective as at the Assumption Time, except as
specifically provided herein or in the Ancillary Agreements. From and after the
Assumption Time, no member of either Group shall have any rights under any such
contract, license, agreement, commitment or arrangement with any member of the
other Group, except as specifically provided herein or in the Ancillary
Agreements.

          (b) After the Assumption Time, the parties shall be obligated to pay
only those intercompany accounts between members of the Technologies Group and
members of the Parent Group that arose in connection with transfers of goods and
services in the ordinary course of business, consistent with past practices
(which the parties shall use reasonable best efforts to settle prior to the
Assumption Time), and all other intercompany accounts shall be settled by the

                                       25
<PAGE>

transfer of financial assets as at the Assumption Time, except as otherwise
contemplated by this Agreement.

          SECTION 6.4  Guarantee Obligations.  (a)  Parent and Technologies
                       ---------------------
shall cooperate, and shall cause their respective Groups to cooperate, to
terminate, or to cause a member of the Parent Group to be substituted in all
respects for any member of the Technologies Group in respect of, all obligations
of any member of the Technologies Group under any Parent Liabilities for which
such member of the Technologies Group may be liable, as guarantor, original
tenant, primary obligor or otherwise. If such a termination or substitution is
not effected by the Assumption Time, (i) Parent shall indemnify and hold
harmless the Technologies Indemnitees for any Indemnifiable Loss arising from or
relating thereto, and (ii) without the prior written consent of any officer of
Technologies who is not also an officer of Parent, from and after the Assumption
Time, Parent shall not, and shall not permit any member of the Parent Group or
any of its Affiliates to, renew or extend the term of, increase its obligations
under, or transfer to a third party, any loan, lease, contract or other
obligation for which any member of the Technologies Group is or may be liable
unless all obligations of the Technologies Group with respect thereto are
thereupon terminated by documentation reasonably satisfactory in form and
substance to any officer of Technologies who is not also an officer of Parent;
provided that the limitations in clause (ii) shall not apply in the event that a
- --------
member of the Parent Group obtains a letter of credit from a financial
institution reasonably acceptable to Technologies and for the benefit of
Technologies with respect to such obligation of the Technologies Group.

          (b) Parent and Technologies shall cooperate, and shall cause their
respective Groups to cooperate, to terminate, or to cause a member of the
Technologies Group to be substituted in all respects for any member of the
Parent Group in respect of, all obligations of any member of the Parent Group
under any Technologies Liabilities for which such member of the Parent Group may
be liable, as guarantor, original tenant, primary obligor or otherwise. If such
a termination or substitution is not effected by the Assumption Time, (i)
Technologies shall indemnify and hold harmless the Parent Indemnitees for any
Indemnifiable Loss arising from or relating thereto, and (ii) without the prior
written consent of any officer of Parent who is not also an officer of
Technologies, from and after the Assumption Time, Technologies shall not, and
shall not permit any member of the Technologies Group to, renew or extend the
term of, increase its obligations under, or transfer to a third party, any loan,
lease, contract or other obligation for which any member of the Parent Group is
or may be liable unless all obligations of the Parent Group with respect thereto
are thereupon terminated by documentation reasonably satisfactory in form and
substance to any officer of Parent who is not also an officer of Technologies;
provided that the limitations contained in clause (ii) shall not apply in the
- --------                                   -----------
event that a member of the Technologies Group obtains a letter of credit from a
financial institution reasonably acceptable to Parent and for the benefit of
Parent with respect to such obligation of the Parent Group.

          SECTION 6.5  Further Assurances.  (a)  In addition to the actions
                       ------------------
specifically provided for elsewhere in this Agreement, each of the parties
hereto shall use its reasonable best efforts, prior to, on and after the
Assumption Time, to take, or cause to be taken, all actions, and to do, or cause
to be done, all things, reasonably necessary, proper or advisable under
applicable laws, regulations and agreements to consummate and make effective the
transactions contemplated by this Agreement and the Ancillary Agreements. Each
of the parties hereby appoints the individuals so identified on Schedule 6.5(a)
                                                                ---------------
to act as its agent and attorney-in-fact

                                       26
<PAGE>

with full right and power to execute any instruments necessary to transfer any
Asset allocated to any other Person.

          (b) Without limiting the foregoing, prior to, on and after the
Assumption Time, each party hereto shall cooperate with the other parties, and
without any further consideration, but at the expense of the requesting party,
to cause to be executed and delivered all instruments, including instruments of
conveyance, assignment and transfer, and to make all filings with, and to obtain
all consents, approvals or authorizations of, any Governmental Authority or any
other Person under any permit, license, agreement, indenture or other instrument
(including any Consents or Governmental Approvals), and to take all such other
actions as such party may reasonably be requested to take by any other party
hereto from time to time, consistent with the terms of this Agreement and the
Ancillary Agreements, in order to effectuate the provisions and purposes of this
Agreement and the Ancillary Agreements and the transfers of the Technologies
Assets and the assignment and assumption of the Technologies Liabilities and the
other transactions contemplated hereby and thereby. On or prior to the
Assumption Time, Parent and Technologies in their respective capacities as
direct and indirect stockholders of their respective Subsidiaries, shall each
properly ratify any actions which are reasonably necessary or desirable to be
taken by Parent and Technologies, or any of their respective Subsidiaries, as
the case may be, to effectuate the transactions contemplated by this Agreement.
On or prior to the Assumption Time, Parent and Technologies shall take all
actions as may be necessary to approve the stock-based employee benefit plans of
Technologies in order to satisfy any applicable requirement, including Rule 16b-
3 under the Exchange Act, Section 162(m) of the Code and the rules and
regulations of the NYSE.

          (c) Parent and Technologies, and each of the members of their
respective Groups, waive (and agree not to assert against the other) any claim
or demand that any of them may have against the other for any Liabilities or
other claims relating to or arising out of: (i) the failure of Technologies or
any member of the Technologies Group, on the one hand, or of Parent or any
member of the Parent Group, on the other hand, to provide any notification or
disclosure required under any state Environmental Law in connection with the
Separation or the other transactions contemplated by this Agreement, including
the transfer by any member of any Group to any member of any other Group of
ownership or operational control of any Assets not previously owned or operated
by such transferee; or (ii) any inadequate, incorrect or incomplete notification
or disclosure under any such state Environmental Law by the applicable
transferor. To the extent any Liability to any Governmental Authority or any
third party arises out of any action or inaction described in clause (i) or (ii)
above, the transferee of the applicable Asset hereby assumes and agrees to pay
any such Liability.

          (d) If either party identifies any commercial or other service that is
needed to assure a smooth and orderly transition of the businesses in connection
with the consummation of the transactions contemplated hereby, and that is not
otherwise governed by the provisions of this Agreement or any Ancillary
Agreement, the parties will cooperate in determining whether there is a mutually
acceptable arm's-length basis on which the other party will provide such
service.

          SECTION 6.6  Qualification as Tax-Free Distribution.  After the
                       --------------------------------------
Assumption Time, neither Parent nor Technologies shall take, or permit any
member of its respective Group

                                       27
<PAGE>

to take, any action which could reasonably be expected to prevent the
Distribution from qualifying as a tax-free distribution within the meaning of
Section 355 of the Code or any other transaction contemplated by this Agreement
or any Ancillary Agreement which is intended by the parties to be tax-free from
failing so to qualify.

          SECTION 6.7  Non-Solicitation.  Neither Parent nor Technologies
                       ----------------
shall, or shall permit any member of its respective Group to, for a period of
eighteen (18) months following the Assumption Time directly or indirectly,
solicit for employment or employ any employee of the other party's Group;
provided, however, that neither party shall be prohibited from employing any
such person whose has been terminated by a member of a Group and who contacts a
member of the other Group at his or her own initiative and without any direct or
indirect solicitation by such Group. Notwithstanding the foregoing, general
solicitation of employment published in a journal, newspaper or any other
publication of general circulation or on the worldwide web and not specifically
directed towards such employees shall not be deemed to be in violation of this
Section 6.7.
- -----------

          SECTION 6.8  Aircraft.  Technologies and Parents shall equally divide
                       ---------
the amount of any gain or loss, and the payment of any tax incurred or tax
benefit of any loss incurred thereby, incurred by the sale of the corporate
aircraft of Parent.

                                   ARTICLE VII

                              ACCESS TO INFORMATION

          SECTION 7.1  Agreement for Exchange of Information.  (a) Each of
                       -------------------------------------
Parent and Technologies, on behalf of its respective Group, agrees to provide,
or cause to be provided, to the other Group, at any time before, on or after the
Assumption Time, as soon as reasonably practicable after written request
therefor, any Information in the possession or under the control of such
respective Group which the requesting party reasonably needs (i) to comply with
reporting, disclosure, filing or other requirements imposed on the requesting
party (including under applicable securities or Tax laws) by a Governmental
Authority having jurisdiction over the requesting party including in connection
with any Registration Statement, (ii) for use in any other judicial, regulatory,
administrative, Tax or other proceeding or in order to satisfy audit,
accounting, claims, regulatory, litigation, Tax or other similar requirements,
or (iii) to comply with its obligations under this Agreement or any Ancillary
Agreement; provided, however, that in the event that any party determines that
           --------  -------
any such provision of Information could be commercially detrimental, violate any
law or agreement, or waive any attorney-client privilege, the parties shall take
all reasonable measures to permit the compliance with such obligations in a
manner that avoids any such harm or consequence. Parent and Technologies intend
that any transfer of Information that would otherwise be within the attorney-
client privilege shall not operate as a waiver of any potentially applicable
privilege. Each party shall make its employees and facilities available during
normal business hours and on reasonable prior notice to provide explanation of
any Information provided hereunder.

          (b) After the Assumption Time, Technologies shall provide, or cause to
be provided, to Parent in such form as Parent shall request, at no charge to
Parent, all historical

                                       28
<PAGE>

financial and other data and Information as Parent determines necessary or
advisable in order to prepare Parent financial statements and reports or filings
with any Governmental Authority.

          SECTION 7.2  Ownership of Information.  Any Information owned by one
                       ------------------------
Group that is provided to a requesting party pursuant to Section 7.1 shall be
                                                         -----------
deemed to remain the property of the providing party. Unless specifically set
forth herein, nothing contained in this Agreement shall be construed as granting
or conferring rights of license or otherwise in any such Information.

          SECTION 7.3  Compensation for Providing Information.  The party
                       --------------------------------------
requesting such Information agrees to reimburse the other party for the
reasonable out-of-pocket costs, fees and expenses, if any, of creating,
gathering and copying such Information, to the extent that such costs, fees and
expenses are incurred for the benefit of the requesting party, provided that
reasonable detail of such costs, fees and expenses have been provided.

          SECTION 7.4  Record Retention.  To facilitate the possible exchange
                       ----------------
of Information pursuant to this Article VII and other provisions of this
                                -----------
Agreement after the Assumption Time, the parties agree to use their reasonable
best efforts to retain all Information in their respective possession or control
at the Assumption Time in accordance with the policies of Parent as in effect at
the Assumption Time. No party will destroy, or permit any of its Subsidiaries to
destroy, any Information which the other party may have the right to obtain
pursuant to this Agreement prior to sixty (60) days after the date of expiry of
the applicable statute of limitations (giving effect to any extensions) with
respect to such Information or three (3) years from the Distribution Date,
whichever is later, without first using its reasonable best efforts to notify
the other party of such proposed destruction and giving the other party the
opportunity to take possession of such information prior to such destruction.

          SECTION 7.5  Limitation of Liability.  No party shall have any
                       -----------------------
Liability to any other party in the event that any Information exchanged or
provided pursuant to this Agreement that is an estimate or forecast, or which is
based on an estimate or forecast, is found to be inaccurate, in the absence of
willful misconduct or fraud by the party providing such Information. No party
shall have any Liability to any other party if any Information is destroyed
after reasonable best efforts by such party to comply with the provisions of
Section 7.4.
- -----------

          SECTION 7.6  Other Agreements Providing for Exchange of Information.
                       ------------------------------------------------------
The rights and obligations granted under this Article VII are subject to any
                                              -----------
specific limitations, qualifications or additional provisions on the sharing,
exchange or confidential treatment of Information set forth in any Ancillary
Agreement.

          SECTION 7.7  Production of Witnesses; Records; Cooperation.  (a)
                       ---------------------------------------------
After the Assumption Time, except in the case of an Action by one party hereto
against the other party hereto (which shall be governed by such discovery rules
as may be applicable thereto), each party hereto shall use its reasonable best
efforts to make available to each other party, upon written request, the former,
current and future directors, officers, employees, other personnel and agents of
the members of its respective Group as witnesses and any books, records or other
documents within its control or which it otherwise has the ability to make
available, to the extent that any such person (giving consideration to business
demands of such directors, officers,

                                       29
<PAGE>

employees, other personnel and agents) or books, records or other documents may
reasonably be required in connection with any Action in which the requesting
party may from time to time be involved, regardless of whether such Action is a
matter with respect to which indemnification may be sought hereunder. The
requesting party shall bear all out-of-pocket costs, fees and expenses
(including allocated costs of in-house counsel and other personnel) in
connection therewith.

          (b) If an Indemnifying Party or Parent chooses to defend or to seek to
compromise or settle any pending or threatened Third-Party Claim, Parent or such
other party, as the case may be, shall use its reasonable best efforts to make
available to the other party, upon written request, the former, current and
future directors, officers, employees, other personnel and agents of the members
of its respective Group as witnesses and any books, records or other documents
within its control or which it otherwise has the ability to make available, to
the extent that any such person (giving consideration to business demands of
such directors, officers, employees, other personnel and agents) or books,
records or other documents may reasonably be required in connection with such
defense, settlement or compromise, or such prosecution, evaluation or pursuit,
as the case may be, and shall otherwise cooperate in such defense, settlement or
compromise, or such prosecution, evaluation or pursuit, as the case may be.

          (c) Without limiting the foregoing, the parties shall reasonably
cooperate and consult to the extent reasonably necessary with respect to any
Actions.

          (d)  Without limiting any provision of this Section 7.7, each of the
                                                      -----------
parties agrees to cooperate, and to cause each member of its respective Group to
cooperate, with each other in the defense of any infringement or similar claim
with respect to any Intellectual Property Rights and shall not claim to
acknowledge, or permit any member of its respective Group to claim to
acknowledge, the validity or infringing use of any intellectual property of a
third Person in a manner that would hamper or undermine the defense of such
infringement or similar claim.

          (e)  The obligation of the parties to provide witnesses pursuant to
this Section 7.7 is intended to be interpreted in a manner so as to facilitate
     -----------
cooperation and shall include the obligation to provide as witnesses inventors,
directors, officers, employees, other personnel and agents without regard to
whether any such individual could assert a possible business conflict (subject
to the exception set forth in the first sentence of Section 7.7(a)).
                                                    --------------

          (f)  In connection with any matter contemplated by this Section 7.7,
                                                                  -----------
the parties will enter into a mutually acceptable joint defense agreement so as
to maintain to the extent practicable any applicable attorney-client privilege
or work product immunity of any member of any Group.

          SECTION 7.8  Confidentiality.  (a)  Subject to Section 7.9, each of
                       ---------------                   -----------
Parent and Technologies, on behalf of itself and each member of its respective
Group, agrees to hold, and to cause its respective directors, officers,
employees, agents, accountants, counsel and other advisors and representatives
to hold, in strict confidence, with at least the same degree of care that such
party then uses with respect to its own confidential and proprietary
information, all Information concerning each such other Group that is either in
its possession (including Information in its possession prior to any of the date
hereof, the Assumption Time or the

                                       30
<PAGE>

Distribution Date) or furnished by any such other Group or its respective
directors, officers, employees, agents, accountants, counsel and other advisors
and representatives at any time pursuant to this Agreement, any Ancillary
Agreement or otherwise, and shall not use any such Information other than for
such purposes as shall be expressly permitted hereunder or thereunder, except,
in each case, to the extent that such Information has been (i) in the public
domain through no fault of such party or any member of such Group or any of
their respective directors, officers, employees, agents, accountants, counsel
and other advisors and representatives, (ii) later lawfully acquired from other
sources by such party (or any member of such party's Group) which sources are
not themselves bound by a confidentiality obligation, or (iii) independently
generated without reference to any proprietary or confidential Information of
the other party.

          (b) Each party agrees not to release or disclose, or permit to be
released or disclosed, any such Information to any other Person, except its
directors, officers, employees, agents, accountants, counsel and other advisors
and representatives who need to know such Information (who shall be advised of
their obligations hereunder with respect to such Information), except in
compliance with Section 7.9. Without limiting the foregoing, when any
                -----------
Information is no longer needed for the purposes contemplated by this Agreement
or any Ancillary Agreement, each party will promptly after request of the other
party either return to the other party all Information in a tangible form
(including all copies thereof and all notes, extracts or summaries based
thereon) or certify to the other party that it has destroyed such Information
(and such copies thereof and such notes, extracts or summaries based thereon).

          SECTION 7.9  Protective Arrangements.  In the event that any party
                       -----------------------
or any member of its Group either determines on the advice of its counsel that
it is required to disclose any Information pursuant to applicable law or
receives any demand under lawful process or from any Governmental Authority to
disclose or provide Information of any other party (or any member of any other
party's Group) that is subject to the confidentiality provisions hereof, such
party shall notify the other party prior to disclosing or providing such
Information and shall cooperate at the expense of the requesting party in
seeking any reasonable protective arrangements requested by such other party.
Subject to the foregoing, the Person that received such request may thereafter
disclose or provide Information to the extent required by such law (as so
advised by counsel) or by lawful process or such Governmental Authority.

                                  ARTICLE VIII

                        NO REPRESENTATIONS OR WARRANTIES

          SECTION 8.1  No Representations or Warranties.  Except as expressly
                       --------------------------------
set forth herein or in any other Ancillary Agreement, Technologies understands
and agrees that no member of the Parent Group is, in this Agreement or in any
other agreement or document, representing or warranting to Technologies or any
member of the Technologies Group in any way as to the Technologies Assets, the
Technologies Business or the Technologies Liabilities, it being agreed and
understood that Technologies and each member of the Technologies Group shall
take all of the Technologies Assets "as is, where is." Except as expressly set
forth herein or in any other Ancillary Agreement and subject to Sections 5.1,
                                                                ------------
5.2, 6.5 and 11.1(b), Technologies and each member of the Technologies Group
- ---  ---     -------
shall bear the economic and legal risk that the Technologies Assets shall prove
to be insufficient or that the title of any member of the

                                       31
<PAGE>

Technologies Group to any Technologies Assets shall be other than good and
marketable and free from encumbrances. The foregoing shall be without prejudice
to any rights under Article II, Section 5.1, Section 5.2 and Section 6.5 or to
                    ----------  -----------  -----------     -----------
the covenants otherwise contained in this Agreement or any other Ancillary
Agreement.

                                   ARTICLE IX

                               REGISTRATION RIGHTS

          SECTION 9.1  Demand Registration Rights. (a) Parent shall have the
                       --------------------------
right, exercisable on multiple occasions from time to time after the expiration
of the lock-up period specified in the Underwriting Agreements, but no more
frequently than twice during any 12-month period, to require Technologies to
register for offer and sale under the Securities Act (a "Demand") all or a
                                                         ------
portion of the Technologies Common Stock ("Demand Shares") held by Parent or any
                                           -------------
Parent Subsidiary; provided that Parent shall not be entitled to make a Demand
                   --------
hereunder unless (i) the Demand Shares represents at least 5% of the aggregate
shares of Technologies Common Stock then issued and outstanding and (ii) Parent
holds not less than 10% of the then outstanding Technologies Common Stock on the
date that Parent requests such Demand. Upon receiving a request for such Demand,
Technologies shall use reasonable best efforts (i) to file as promptly as
reasonably practicable a registration statement on such form as Technologies may
reasonably deem appropriate (provided that Technologies shall not be
                             --------
obligated to register any securities on a "shelf" registration statement or
otherwise to register securities for offer or sale on a continuous or delayed
basis) providing for the registration of the sale of such Demand Shares pursuant
to the intended method of distribution requested by Parent (a "Demand
                                                               ------
Registration"), and (ii) to cause such registration statement first to become
- ------------
effective and then to remain effective for such period of time (not to exceed 90
days from the day such registration statement first becomes effective, subject
to extension to the extent of any suspension in the obligation to keep effective
provided below) as may be reasonably necessary to effect such offers and sales.

          (b) Notwithstanding anything in this Agreement to the contrary,
Technologies shall be entitled to postpone and delay, for reasonable periods of
time, but in no event more than an aggregate of 60 days during any 12-month
period (a "Blackout Period"), the filing or effectiveness of any registration
           ---------------
statement relating to a Demand Registration if Technologies shall determine that
any such filing or the offering of any Demand Shares would, (i) in the good
faith judgment of the Board of Directors of Technologies, impede, delay or
otherwise interfere with any pending or contemplated material acquisition,
corporate reorganization or other similar transaction involving Technologies,
(ii) based upon advice from an investment banker or financial advisor, adversely
affect any pending or contemplated financing, offering or sale of any class of
securities by Technologies or (iii) in the good faith judgment of the Board of
Directors of Technologies, require disclosure of material non-public information
(other than information relating to an event described in clauses (i) or (ii)
above) which, if disclosed at such time, would be harmful to the best interests
of Technologies and its stockholders; provided, however, that in each case
                                      --------  -------
Technologies shall give written notice to Parent of its determination to
postpone or delay the filing of any Demand Registration; and provided, further,
                                                             --------  -------
that in each case in the event that Technologies proposes to register
Technologies Common Stock, whether or not for sale for its own account, during a
Blackout Period, Parent shall have the right to exercise its rights under

                                       32
<PAGE>

Section 9.2 of this Agreement with respect to such registration, subject to the
- -----------
limitations contained in this Agreement on the exercise of such rights.

          (c) In connection with an underwritten offering, if the managing
underwriter or co-managing underwriter reasonably and in good faith shall have
advised Technologies or Parent that, in its opinion, the number of Demand Shares
subject to a Demand Request exceeds the number which can be sold in such
offering, Parent shall include in such registration the number of Demand Shares
that, in the opinion of such managing underwriter or underwriters, can be sold
in such offering; provided that if as a result of any reduction pursuant to this
                  --------
paragraph (c), the Technologies Common Stock subject to such Demand represents
5% or less of the aggregate shares of Technologies Common Stock then issued and
outstanding, Parent may withdraw such Demand with respect to all Demand Shares
covered thereby and such registration shall not count for the purposes of
determining the number of Demand Registrations to which Parent is entitled under
Section 9.1(a).
- --------------

          (d) In connection with any underwritten offering, the managing
underwriter for such Demand Registration shall be selected by Parent, provided
                                                                      --------
that such managing underwriter shall be a nationally recognized investment
banking firm and shall be reasonably acceptable to Technologies. Technologies
may, at its option, select a nationally recognized investment banking firm
reasonably acceptable to Parent to act as co-managing underwriter.

          SECTION 9.2  Piggy-back Registration Rights.  (a) If at any time
                       ------------------------------
Technologies intends to file on its behalf or on behalf of any of its
securityholders a registration statement in connection with a public offering of
any securities of Technologies on a form and in a manner that would permit the
registration for offer and sale of Technologies Common Stock held by Parent or
any Parent Subsidiary, other than a registration statement on Form S-8 or Form
S-4, then Technologies shall give written notice (an "Intended Offering Notice")
                                                      ------------------------
of such intention to Parent at least 20 business days prior to the anticipated
filing date of such registration statement. Such Intended Offering Notice shall
offer to include in such registration statement for offer to the public such
number of shares of Common Stock as Parent may request, subject to the
conditions set forth herein, and shall specify, to the extent then known, the
number and class of securities proposed to be registered, the proposed date of
filing of such registration statement, any proposed means of distribution of
such securities, any proposed managing underwriter or underwriters of such
securities and a good faith estimate by Technologies of the proposed maximum
offering price of such securities, as such price is proposed to appear on the
facing page of such registration statement. Parent shall advise Technologies in
writing (such written notice being a "Piggy-back Notice") not later than 10
                                      -----------------
business days after Technologies' delivery to Parent of the Intended Offering
Notice, if Parent desires to participate in such offering. The Piggy-back Notice
shall set forth the number of shares of Technologies Common Stock that Parent
desires to have included in the registration statement and offered to the public
(the "Piggy-back Shares"). Upon the request of Technologies, Parent shall
      -----------------
enter into such underwriting, custody and other agreements as are customary in
connection with registered secondary offerings or necessary or appropriate in
connection with the offering.

               (b) In connection with an underwritten offering pursuant to this
Section 9.2, if the managing underwriter or underwriters advise Technologies and
- -----------
Parent in writing that in its or their opinion the number of securities proposed
to be registered exceeds the number that can be

                                       33
<PAGE>

sold in such offering, Technologies shall include in such registration the
number of securities that, in the opinion of such managing underwriter or
underwriters, can be sold as follows: (i) first, the securities that
Technologies proposes to sell, (ii) second, Piggy-back Shares requested to be
included in such registration by Parent and (iii) third, other securities
requested to be included in such registration.

          SECTION 9.3  Registration Procedures. In connection with any
                       -----------------------
registration statement registering either Demand Shares or Piggy-back Shares (a
"Registration Statement"), the following provisions shall apply:
 ----------------------

          (a) Before filing a Registration Statement or the prospectus included
therein, Technologies will furnish to Parent and the managing underwriter or
underwriters, if any, draft copies of all such documents proposed to be filed at
least three (3) days prior to such filing, which documents will be subject to
the reasonable review of Parent and the managing underwriter or underwriters, if
any, and their respective agents and representatives and (x) Technologies will
not include in any Registration Statement information concerning or relating to
Parent to which Parent shall reasonably object (unless the inclusion of such
information is required by applicable law or the regulations of any securities
exchange to which Technologies may be subject), and (y) Technologies will not
file any Registration Statement pursuant to Section 9.1 or any amendment thereto
                                            -----------
or any prospectus or any supplement thereto to which Parent shall reasonably
object.

          (b) Technologies shall furnish to Parent, prior to the time the
Registration Statement has been declared effective, a copy of the Registration
Statement as initially filed with the SEC, and each amendment thereto and each
amendment or supplement, if any, to the prospectus included therein.

          (c)  Subject to Section 9.1(b) and in respect of a Registration
                          --------------
Statement under Section 9.1, Technologies shall use reasonable best efforts to
                -----------
take promptly such action as may be necessary so that (i) each of the
Registration Statement and any amendment thereto and the prospectus forming part
thereof and any amendment or supplement thereto (and each report or other
document incorporated therein by reference in each case), when it becomes
effective, complies in all material respects with the Securities Act and the
Exchange Act and the rules and regulations thereunder, (ii) each of the
Registration Statement and any amendment thereto does not, when it becomes
effective, contain an untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements
therein not misleading and (iii) each of the prospectus forming part of the
Registration Statement, and any amendment or supplement to such prospectus, does
not at any time during the period during which Technologies is required to use
reasonable best efforts to keep a Registration Statement effective under Section
                                                                         -------
9.1(a) include an untrue statement of a material fact or omit to state a
- ------
material fact necessary in order to make the statements therein, in the light of
the circumstances under which they were made, not misleading.

          (d) Technologies shall, promptly upon learning thereof, notify Parent
of the following, and shall confirm such notice in writing if so requested:

               (i)  when a Registration Statement and any amendment thereto has

                                       34
<PAGE>

     been filed with the SEC and when the Registration Statement or any post-
     effective amendment thereto has become effective;

               (ii) of any request by the SEC for amendments or supplements to
     the Registration Statement or the prospectus included therein or for
     additional information with respect to the Registration Statement and
     prospectus;

               (iii)  of the issuance by the SEC of any stop order suspending
     the effectiveness of the Registration Statement or the initiation of any
     proceedings for such purpose;

               (iv) of the receipt by Technologies of any notification with
     respect to the suspension of the qualification of the securities included
     in the Registration Statement for sale in any jurisdiction or the
     initiation of any proceeding for such purpose; and

               (v) following the effectiveness of any Registration Statement, of
     the happening of any event or the existence of any state of facts that
     requires the making of any changes in the Registration Statement or the
     prospectus included therein so that, as of such date, such Registration
     Statement and prospectus do not contain an untrue statement of a material
     fact and do not omit to state a material fact required to be stated therein
     or necessary to make the statements therein (in the case of the prospectus,
     in light of the circumstances under which they were made) not misleading
     (which notice shall be accompanied by an instruction to Parent to suspend
     the use of the prospectus until the requisite changes have been made, which
     instruction Parent agrees to follow).

          (e)  In respect of a Registration Statement under Section 9.1 (and not
                                                            -----------
Section 9.2), Technologies shall use reasonable best efforts to prevent the
- -----------
issuance, and if issued to obtain the withdrawal, of any stop order suspending
the effectiveness of the Registration Statement at the earliest possible time.

          (f) Technologies shall furnish to Parent, without charge, at least one
copy of the Registration Statement and all post-effective amendments thereto,
including financial statements and schedules, and, if Parent so requests in
writing, all reports, other documents and exhibits that are filed with or
incorporated by reference in the Registration Statement.

          (g) Technologies shall, during the period during which Technologies is
required to use reasonable best efforts to keep a Registration Statement
continuously effective under Section 9.1(a) or elects to keep a Registration
                             --------------
Statement effective under Section 9.2, deliver to Parent without charge, as many
                          -----------
copies of the prospectus (including each preliminary prospectus) included in the
Registration Statement and any amendment or supplement thereto as Parent may
reasonably request, and Technologies consents (except during the continuance of
any event described in Section 9.1(b) or Section 9.3(d)(v) hereof) to the use of
                       --------------    -----------------
the prospectus, with any amendment or supplement thereto, by Parent in
connection with the offering and sale of any Demand Shares or Piggy-back Shares
(such shares, the "Registrable Shares") covered by the prospectus and any
                   -------------------
amendment or supplement thereto during such period.

                                       35
<PAGE>

          (i) Prior to any offering of Registrable Shares pursuant to the
Registration Statement, Technologies shall use reasonable best efforts to (i)
register or qualify or cooperate with Parent and its counsel in connection with
the registration or qualification of such Registrable Shares for offer and sale
under the securities or "blue sky" laws of such jurisdictions within the United
States as Parent may reasonably request, (ii) keep such registrations or
qualifications in effect and comply with such laws so as to permit the
continuance of offers and sales in such jurisdictions for the period during
which Technologies is required to use reasonable best efforts to keep a
Registration Statement continuously effective under Section 9.1(a), and (iii)
                                                    --------------
take any and all other reasonable actions requested by Parent which are
necessary to enable the disposition in such jurisdictions of such Registrable
Shares; provided, however, that in no event shall Technologies be obligated to
        --------  -------
(1) qualify as a foreign corporation or as a dealer in securities in any
jurisdiction where it would not otherwise be required to so qualify but for this
Agreement or (2) file any general consent to service of process or subject
itself to Tax in any jurisdiction where it is not so subject.

          (j) Technologies shall cooperate with Parent to facilitate the timely
preparation and delivery of certificates representing Registrable Shares to be
sold pursuant to the Registration Statement, which certificates shall comply
with the requirements of any United States securities exchange upon which any
Registrable Shares are listed (provided that nothing herein shall require
                               --------
Technologies to list any Registrable Shares on any securities exchange on which
they are not currently listed) and the rules and regulations of the National
Association of Securities Dealers, as applicable, and which certificates shall
be free of any restrictive legends and in such permitted denominations and
registered in such names as Parent may request in connection with the sale of
Registrable Shares pursuant to the Registration Statement.

          (k)  Technologies shall:

               (i) make such reasonable representations and warranties in the
     applicable underwriting agreement to the underwriters, in form, substance
     and scope as are customary and as are consistent with the representations
     and warranties made in the Underwriting Agreements;

               (ii) use reasonable best efforts to cause all Registrable Shares
     covered by any Registration Statement to be listed on the NYSE or on the
     principal securities exchange on which Technologies Common Stock is then
     listed, or if no similar securities are then listed, cause all such
     Registrable Shares to be listed on a United States national securities
     exchange or secure designation of each such Regitrable Share as a Nasdaq
     National Market "national market system security" or secure National
     Association of Securities Dealers Automated Quotation authorization for
     such shares;

               (iii) in connection with any underwritten offering, use
     reasonable best efforts to obtain opinions of counsel to Technologies
     (which counsel and opinions in form, scope and substance) shall be
     reasonably satisfactory to the underwriters addressed to the underwriters,
     covering such matters as are customary to the extent reasonably required by
     the applicable underwriting agreement;

                                       36
<PAGE>

               (iv) in connection with any underwritten offering, use reasonable
     best efforts to obtain "cold comfort" letters and updates thereof from the
     independent public accountants of Technologies (and, if necessary, from the
     independent public accountants of any subsidiary of Technologies or of any
     business acquired by Technologies for which financial statements and
     financial data are, or are required to be, included in the Registration
     Statement), addressed to Parent and the underwriters, in customary form and
     covering matters of the type customarily covered in "cold comfort" letters
     in connection with secondary underwritten offerings of equity securities;

               (v) in connection with any underwritten offering, use reasonable
     best efforts to deliver such documents and certificates as may be
     reasonably requested by Parent and the underwriters, if any, including,
     without limitation, certificates to evidence compliance with any conditions
     contained in the underwriting agreement or other agreements entered into by
     Technologies; and

               (vi)   undertake such obligations relating to expense
     reimbursement, indemnification and contribution as provided in Section 9.4
                                                                    -----------
     and Article V hereof.
         ---------

          (k) Technologies shall comply with all applicable rules and
regulations of the SEC and make available to its security holders an earning
statement, as soon as reasonably practicable but in no event later than 90 days
after the end of the period of 12 months commencing on the first day of any
fiscal quarter next succeeding each sale by Parent of Registrable Shares after
the date hereof, which earning statement shall cover such twelve month period
and shall satisfy the provisions of Section 11(a) of the Securities Act and may
be prepared in accordance with Rule 158 under the Securities Act.

          (l)  In respect of a Registration Statement under Section 9.1 (and not
                                                            -----------
Section 9.2), Technologies shall use reasonable best efforts to take all other
- -----------
steps reasonably necessary to effect the timely registration, offering and sale
of the Registrable Securities covered by the Registration Statements
contemplated hereby.

          (m) Parent shall notify Technologies as promptly as practicable of any
inaccuracy or change in Information previously furnished by Parent to
Technologies pursuant to Section 7.1 for inclusion in any Registration Statement
                         -----------
or related prospectus or exhibits or of the occurrence of any event, in either
case as a result of which any Registration Statement or related prospectus or
exhibit contains or would contain an untrue statement of a material fact or
omits to state 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, and promptly furnish to Technologies any additional
Information required to correct and update any previously furnished Information
or required so that such prospectus shall not contain an untrue statement of a
material fact or omit to state a 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.

          SECTION 9.4  Registration Expenses.  Technologies shall bear the
                       ---------------------
costs, fees and expenses arising in connection with the performance of its
obligations under Section 9.1, Section 9.2 and Section 9.3.  Parent shall bear
                  -----------  -----------     -----------
all of the costs, fees and expenses of counsel to

                                       37
<PAGE>

Parent, any applicable underwriting discounts or commissions, and registration
or filing fees with respect to the Registrable Shares being sold by Parent.

          SECTION 9.5  Termination of Registration Obligation. Notwithstanding
                       --------------------------------------
anything to the contrary contained in this Agreement, the provisions of Section
                                                                        -------
9.1, Section 9.2 and Section 9.3 shall terminate upon completion of the
- ---  -----------     -----------
Distribution.

                                    ARTICLE X

                                   TERMINATION

          SECTION 10.1 Termination by Mutual Consent.  This Agreement may be
                       -----------------------------
terminated at any time prior to the Distribution Date by the mutual consent of
Parent and Technologies.

          SECTION 10.2 Effect of Termination.  (a)  In the event of any
                       ---------------------
termination of this Agreement prior to consummation of the IPO, no party to this
Agreement (or any of its directors or officers) shall have any Liability or
further obligation to any other party.

          (b) In the event of any termination of this Agreement on or after the
consummation of the IPO, only the provisions of Article IV and Section 6.6 will
                                                ----------     -----------
terminate and the other provisions of this Agreement and each Ancillary
Agreement shall remain in full force and effect.

                                   ARTICLE XI

                                  MISCELLANEOUS

          SECTION 11.1 Complete Agreement; Corporate Power.  (a) This Agreement,
                       -----------------------------------
the Exhibits and Schedules hereto and the Ancillary Agreements shall constitute
the entire agreement between the parties hereto with respect to the subject
matter hereof and shall supersede all previous negotiations, commitments and
writings with respect to such subject matter.

          (b) Parent represents on behalf of itself and each other member of the
Parent Group and Technologies represents on behalf of itself and each other
member of the Technologies Group as follows:

               (i) each such Person has the requisite corporate or other power
and authority and has taken all corporate or other action necessary in order to
execute, deliver and perform each of this Agreement and each other Ancillary
Agreement to which it is a party and to consummate the transactions contemplated
hereby and thereby; and

               (ii) this Agreement and each Ancillary Agreement to which it is a
party has been duly executed and delivered by it and constitutes a valid and
binding agreement of it enforceable in accordance with the terms thereof.

                                       38
<PAGE>

          SECTION 11.2 Expenses.  Except as expressly set forth in this
                       --------
Agreement or in any Ancillary Agreement, whether or not the Separation, the IPO
or the Distribution are consummated, all third party fees, costs and expenses
paid or incurred in connection with the transactions contemplated by this
Agreement and the Ancillary Agreements will be paid by the party incurring such
fees, costs or expenses.

          SECTION 11.3 Governing Law.  This Agreement shall be governed by and
                       -------------
construed in accordance with the laws of the State of Delaware (other than the
laws regarding choice of laws and conflicts of laws that would apply the
substantive laws of any other jurisdiction) as to all matters, including matters
of validity, construction, effect, performance and remedies.

          SECTION 11.4 Notices.  All notices, requests, claims, demands and
                       -------
other communications hereunder shall be in writing and shall be given (and shall
be deemed to have been duly given upon receipt) by delivery in person, by
standard form of telecommunications, by courier, or by registered or certified
mail, postage prepaid, return receipt requested, addressed as follows:

          If to Parent or any member of the Parent Group:

          Prior to the Distribution:        After the Distribution:

          FMC Corporation                   FMC Corporation
          200 East Randolph Drive           1735 Market Street
          Chicago, Illinois 60601           Philadelphia, Pennsylvania 19103
          Attention: General Counsel        Attention: Chief Executive Officer
          Fax: (312) 861-6176               Fax:  (215) 299-5999

          If to Technologies or any member of the Technologies Group:

          FMC Technologies, Inc.
          200 East Randolph Drive
          Chicago, Illinois 60601
          Attention: President
          Fax: (312) 861-6176

or to such other address as any party hereto may have furnished to the other
parties by a notice in writing in accordance with this Section 11.4.
                                                       ------------

          SECTION 11.5 Amendment and Modification.  This Agreement may be
                       --------------------------
amended, modified or supplemented only by a written agreement signed by all of
the parties hereto.

          SECTION 11.6 Successors and Assigns; No Third-Party Beneficiaries.
                       ----------------------------------------------------
This Agreement and all of the provisions hereof shall be binding upon and inure
to the benefit of the parties hereto and their successors and permitted assigns,
but neither this Agreement nor any of the rights, interests and obligations
hereunder shall be assigned by any party hereto without the prior written
consent of the other party. Except for the provisions of Sections 5.2 and 5.3
                                                          ------------     ---

                                       39
<PAGE>

relating to indemnities, which are also for the benefit of the Indemnitees, this
Agreement is solely for the benefit of the parties hereto and their Subsidiaries
and Affiliates and is not intended to confer upon any other Persons any rights
or remedies hereunder.

          SECTION 11.7   Counterparts.  This Agreement may be executed in
                         ------------
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

          SECTION 11.8   Interpretation.  The Article and Section headings
                         --------------
contained in this Agreement are solely for the purpose of reference, are not
part of the agreement of the parties hereto and shall not in any way affect the
meaning or interpretation of this Agreement.

          SECTION 11.9   Severability.  If any provision of this Agreement or
                         ------------
the application thereof to any person or circumstance is determined by a court
of competent jurisdiction to be invalid, void or unenforceable, the remaining
provisions hereof, or the application of such provision to persons or
circumstances other than those as to which it has been held invalid or
unenforceable, shall remain in full force and effect and shall in no way be
affected, impaired or invalidated thereby, so long as the economic or legal
substance of the transactions contemplated hereby is not affected in any manner
adverse to any party.

          SECTION 11.10  References; Construction. References to any "Article,"
                         ------------------------
"Exhibit," "Schedule" or "Section," without more, are to Articles, Exhibits,
Schedules and Sections to or of this Agreement. Unless otherwise expressly
stated, clauses beginning with the term "including" set forth examples only and
in no way limit the generality of the matters thus exemplified.

          SECTION 11.11  Conflict with Ancillary Agreements. Except to the
                         ----------------------------------
extent Section 5.2, 5.3 or 12.1 conflict with the Tax Sharing Agreement, in
       -----------  ---    ----
which case the Tax Sharing Agreement shall govern, the provisions of this
Agreement shall govern in the event of any conflict between the provisions of
any Ancillary Agreement and this Agreement.

          SECTION 11.12 Post Foreign-Restructuring Capital Contribution.
                         -----------------------------------------------
Parent and Technologies understand and acknowledge that certain trade and
government receivables of the chemical operations of the current UK and Irish
affiliates of Parent (the "Retained Receivables") are being withheld from the
Foreign Restructuring transactions in these jurisdictions in order to minimize
the amount of Foreign Transfer Taxes payable in each of these jurisdictions. As
a result of these transactions, Technologies will (in accordance with the
operation and provision of Schedule 2.6) carry an increased initial amount of
indebtedness which reflects the face value of the Retained Receivables. In order
to mitigate the future carrying cost on Technologies of the Retained
Receivables, Parent agrees to make periodic capital contributions to
Technologies. No additional shares of Technologies stock shall be issued in
consideration for Parent making such capital contributions. The capital
contributions shall be made on a monthly basis (in arrears) until the date that
all Retained Receivables are either paid in full or repurchased by the relevant
foreign subsidiary of the parent in accordance with the relevant Foreign
Restructuring Agreement. The amount of the monthly capital contribution shall be
equal to:

     (i)   the sum of:

                (a)  the average monthly balance of Retained Receivables of the
                     Lithium, Biopolymer and Agricultural Chemical Business of
                     FMC Corporation (UK) Limited;

                (b)  plus average monthly balance of Retained Receivables of the
                     Biopolymer business of FMC International A.G. Irish
                     partnership;

     (ii)  times the average monthly LIBOR interest rate for the month in
           question (as quoted in The Wall Street Journal);

     (iii) times 61%.

Such monthly capital contributions shall be made within ten (10) Business Days
following the month end to which the computation relates and shall be payable in
US dollars.

                                   ARTICLE XII

                                   NEGOTIATION

          SECTION 12.1   Negotiation.  In the event of any dispute or
                         -----------
disagreement between any member of the Parent Group, on one hand, and any member
of the Technologies Group, on the other hand, as to the interpretation of any
provision of this Agreement or Ancillary Agreements (or the performance of
obligations hereunder or thereunder), the dispute, upon written request of
Parent or Technologies, as applicable, shall be referred to representatives of
the parties for decision, each party being represented by its Chief Executive
Officer. The Chief Executive Officers shall promptly meet in a good faith effort
to resolve the dispute or determine a means to resolve the dispute. If the Chief
Executive Officers do not agree upon a decision within thirty (30) days after
reference of the matter to them, each Parent and Technologies shall be free to
exercise all rights and remedies available to them.

                                       40
<PAGE>

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

                                        FMC CORPORATION

                                        By:_______________________________
                                           Name:
                                           Title:


                                        FMC TECHNOLOGIES, INC.


                                        By:_______________________________
                                           Name:
                                           Title:

                                       41
<PAGE>


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4
<SEQUENCE>4
<FILENAME>fmcex4-1_52724.txt
<DESCRIPTION>EXHIBIT 4-1 - REVOLVING CREDIT AGREEMENT
<TEXT>
EXHIBIT 4.1


                            364-DAY CREDIT AGREEMENT


     364-DAY CREDIT AGREEMENT dated as of December 6, 2001, among FMC
CORPORATION, a Delaware corporation (the "BORROWER"), the lenders from time to
time party hereto (the "LENDERS"), CITIBANK, N.A., as administrative agent (the
"ADMINISTRATIVE AGENT"), BANK OF AMERICA, N.A., as syndication agent, and ABN
AMRO BANK N.V. and FIRST UNION NATIONAL BANK, as co-documentation agents.

     The parties hereto agree as follows:

                                   ARTICLE I

                                   DEFINITIONS

     SECTION 1.01. Definitions. The following terms, as used herein, have the
                   -----------
following meanings (such meanings to be equally applicable to both the singular
and plural forms of the terms defined):

     "ADDITIONAL LENDER" has the meaning set forth in Section 2.18(b).

     "ADJUSTED NET INCOME" means, for any period, Consolidated Net Income for
such period, excluding the effect of Non-Recurring Items; provided that the
aggregate amount so excluded on account of Non-Recurring Items shall not exceed
$150,000,000 minus the aggregate amount of any write-downs in or write-offs of
any Investment of the Borrower or any Restricted Subsidiary in any Unrestricted
Subsidiary if such Investments were accounted for under the cost method of
accounting under GAAP.

     "ADMINISTRATIVE AGENT" means Citibank, in its capacity as agent for the
Lenders hereunder, and its successors in such capacity.

     "ADMINISTRATIVE QUESTIONNAIRE" means, with respect to each Lender, an
administrative questionnaire in the form prepared by the Administrative Agent
and duly completed and submitted to the Administrative Agent (with a copy to the
Borrower) by such Lender.

     "AGREEMENT" means this 364-Day Credit Agreement, as amended, supplemented
or otherwise modified from time to time.

     "APPLICABLE LENDING OFFICE" means, with respect to any Lender, (i) in the
case of its Base Rate Loans, its Domestic Lending Office, (ii) in the case of
its Euro-Dollar Loans, its Euro-Dollar Lending Office, and (iii) in the case of
its Competitive Bid Loans, its Competitive Bid Lending Office.

     "ASSIGNEE" has the meaning set forth in Section 9.07(c).

     "ASSIGNMENT AND ASSUMPTION AGREEMENT" means an assignment and assumption
entered into by (a) a Lender and an Assignee, and accepted by the Administrative
Agent, or (b) an Assuming Lender, a Non-Consenting Lender, the Borrower and the
Administrative Agent, as applicable, in substantially the form of Exhibit D.

     "ASSUMING LENDER" means each Assignee that accepts an offer to participate
in a requested extension of the Commitments in accordance with Section 2.17.



<PAGE>

     "BASE RATE" means, for any period, a fluctuating interest rate per annum as
shall be in effect from time to time, which rate per annum shall be equal to the
higher of the following:

          (a) the rate of interest announced publicly by Citibank in New York,
     New York, from time to time, as Citibank's base rate; or


          (b) the sum of (i) 0.5% per annum plus (ii) the Federal Funds Rate.

     "BASE RATE LOAN" means a Loan made or to be made by a Lender in accordance
with the applicable Notice of Borrowing or pursuant to Section 8.04 which bears
interest based on the Base Rate.

     "BORROWER" means FMC Corporation and its permitted successors and assigns.

     "BORROWING" has the meaning set forth in Section 1.03.

     "BUSINESS DAY" means a Domestic Business Day and, if the applicable
Business Day relates to notices, determinations, fundings and payments in
connection with the Euro-Dollar Rate or any Euro-Dollar Loans, a Euro-Dollar
Business Day.

     "CITIBANK" means Citibank, N.A.

     "COMMITMENT" means, (i) with respect to each Lender, the amount set forth
opposite the name of such Lender on Schedule I hereto and (ii) with respect to
each Additional Lender which becomes a Lender pursuant to Section 2.18, the
amount of commitment thereby assumed by it, in each case as such amount may be
reduced from time to time pursuant to Section 2.10 or 2.11, or increased
pursuant to Section 2.17 or 2.18 or increased or reduced by reason of an
assignment to or by such Lender in accordance with Section 9.07(c).

     "COMMITMENT TERMINATION DATE" means, subject to Section 2.17, the earlier
to occur of (i) 364 days following the Effective Date (or if such day is not a
Euro-Dollar Business Day, the preceding Euro-Dollar Business Day), as such date
may be extended in accordance with Section 2.17, or (ii) the date on which the
Commitments shall have been reduced to zero pursuant to Sections 2.09, 2.10 or
6.01; provided, however, that the Commitment Termination Date of any Lender that
is a Non-Consenting Lender to any requested extension pursuant to Section 2.17
shall be the Commitment Termination Date in effect immediately prior to the
applicable Extension Date for all purposes of this Agreement.

     "COMPETITIVE BID BORROWING" means a Borrowing consisting of a Competitive
Bid Loan or simultaneous Competitive Bid Loans from each of the Lenders whose
offer to make one or more Competitive Bid Loans as part of such Borrowing has
been accepted under the competitive bidding procedure described in Section 2.03.

     "COMPETITIVE BID EURO-DOLLAR RATE LOAN" means a Loan made pursuant to
Section 2.03 that bears interest based on the Euro-Dollar Rate.

     "COMPETITIVE BID LENDING OFFICE" means, with respect to each Lender, the
office of such Lender notified by such Lender to the Administrative Agent as its
Lending Office with respect to any Competitive Bid Loan.

     "COMPETITIVE BID LOAN" means a Competitive Bid Euro-Dollar Rate Loan or a
Fixed Rate Loan.

                                       2

<PAGE>

     "COMPETITIVE BID LOAN REDUCTION" has the meaning specified in Section 2.01.

     "COMPETITIVE BID LOAN NOTE" means a promissory note of the Borrower
registered in the name of any Lender, in substantially the form of Exhibit A-2,
evidencing the aggregate Debt of the Borrower to such Lender resulting from the
Competitive Bid Loans owing to such Lender.

     "CONSOLIDATED ADJUSTED NET WORTH" means, at any date, the sum of (i) the
consolidated stockholders' equity of the Borrower and its Consolidated
Subsidiaries as of December 31, 2001, plus (ii) the cumulative Adjusted Net
Income for the period since December 31, 2001 through the end of the then most
recently ended fiscal quarter of the Borrower, treated for this purpose as a
single accounting period, plus or minus (iii) the net amount by which the
consolidated stockholders' equity of the Borrower and its Consolidated
Restricted Subsidiaries has been increased or decreased since December 31, 2001
on account of items not reflected in Adjusted Net Income (other than items
specifically excluded from Adjusted Net Income pursuant to the terms of this
Agreement and cumulative changes in GAAP, and amounts included in other
comprehensive income under GAAP).

     "CONSOLIDATED DEBT" means at any date the total Debt of the Borrower and
its Consolidated Subsidiaries, determined on a consolidated basis as of such
date.

     "CONSOLIDATED EBITDA" means, with respect to the Borrower and its
Consolidated Subsidiaries for any period, an amount equal to (a) Consolidated
Net Income for such period plus (b) the sum of, in each case to the extent
deducted in the calculation of such Consolidated Net Income but without
duplication, (i) any income tax expense, (ii) Consolidated Interest Expense,
(iii) depreciation, depletion, and amortization of intangibles or financing or
acquisition costs, (iv) all other non-cash charges and non-cash losses for such
period, and (v) Non-Recurring Items minus (c) the cash portion of Non-Recurring
Items recognized in 2002 when paid and (d) the sum of, in each case to the
extent added in the calculation of such Consolidated Net Income, but without
duplication, (i) any income tax benefit, (ii) interest income, (iii) gains and
losses from extraordinary items for such period, (iv) any aggregate net gain
(but not any aggregate net loss) from the sale, exchange or other disposition of
capital assets currently employed in the trade or business of the Borrower and
its Subsidiaries, and (v) any other non-cash gains.

     "CONSOLIDATED INTEREST COVERAGE RATIO" means, with respect to the Borrower
and its Consolidated Subsidiaries for any period, the ratio of Consolidated
EBITDA to Consolidated Interest Expense for such period.

     "CONSOLIDATED INTEREST EXPENSE" means, for the Borrower and its
Consolidated Subsidiaries for any period, total interest expense for such period
determined on a consolidated basis in conformity with GAAP and including, in any
event, interest capitalized during construction for such period.

     "CONSOLIDATED NET INCOME" means for any period the net income (or loss) of
the Borrower and its Consolidated Restricted Subsidiaries for such period before
extraordinary items, exclusive of any income (or loss) of any Unrestricted
Subsidiary during such period but including the sum of (i) dividends received
during such period by the Borrower or a Consolidated Restricted Subsidiary and
(ii) the sum of (x) the Borrower's pro rata share of the net income (calculated
before income taxes, interest expense, extraordinary and unusual items and
Non-Recurring Items) of Astaris LLC for such period and (y) the Shortfall Amount
for such period, in each case only to the extent that the Shortfall Amount is
paid to Astaris LLC by the Borrower during such period.

                                       3


<PAGE>

     "CONSOLIDATED RESTRICTED SUBSIDIARY" means at any date any Restricted
Subsidiary the accounts of which would be consolidated with those of the
Borrower in its consolidated financial statements as of such date.

     "CONSOLIDATED SUBSIDIARY" means at any date any Subsidiary or other Person
the accounts of which would be consolidated with those of the Borrower in its
consolidated financial statements as of such date, other than FTI.

     "DEBT" of any Person means at any date, without duplication, (i) all
obligations of such Person for borrowed money, (ii) all obligations of such
Person evidenced by bonds, debentures, notes or other similar instruments (other
than the non-negotiable notes of the Borrower issued to its insurance carriers
in lieu of maintenance of policy reserves in connection with its workers'
compensation and auto liability insurance program), (iii) all obligations of
such Person to pay the deferred purchase price of property or services, except
trade accounts payable, expense accruals and deferred employee compensation
items arising in the ordinary course of business, (iv) all non-contingent
obligations (and, for purposes of Section 5.06 and the definition of Material
Financial Obligations, all contingent obligations) of such Person to reimburse
any bank or other Person in respect of amounts paid under a letter of credit or
similar instrument, other than obligations under direct pay letters of credit
which have already been accounted for under the categories of Debt described in
clauses (i) or (ii) above, (v) all obligations of such Person as lessee under
capital leases reported under GAAP as "debt" on such Person's balance sheet,
(vi) all Debt of others secured by a Lien on any asset of such Person, whether
or not such Debt is assumed by such Person, (vii) all debt of such Person
created or arising under any conditional sale or other title retention agreement
with respect to trade accounts receivable acquired by such Person (even though
the rights and remedies of the seller or lender under such agreement in the
event of default are limited to repossession or sale of such trade accounts
receivable) and (viii) all Debt of others Guaranteed by such Person, except for
guarantees of Debt related to the financing of product sales of certain foreign
Subsidiaries of the Borrower listed on Schedule 1.01(a).

     "DEFAULT" means any condition or event which constitutes an Event of
Default or which with the giving of notice or lapse of time or both would,
unless cured or waived, become an Event of Default.

     "DERIVATIVES OBLIGATIONS" of any Person means all obligations of such
Person in respect of any rate swap transaction, 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,
currency swap transaction, cross-currency rate swap transaction, currency option
or other similar transaction (including any option with respect to any of the
foregoing transactions) or any combination of the foregoing transactions.

     "DOMESTIC BUSINESS DAY" means any day except a Saturday, Sunday or other
day on which commercial banks in New York City are authorized or required by law
to close.

     "DOMESTIC LENDING OFFICE" means, as to each Lender, its office located at
its address set forth in its Administrative Questionnaire (or identified in its
Administrative Questionnaire as its Domestic Lending Office) or such other
office as such Lender may hereafter designate as its Domestic Lending Office by
notice to the Borrower and the Administrative Agent.

     "EFFECTIVE DATE" means the date this Agreement becomes effective in
accordance with Section 3.01.

                                       4

<PAGE>

     "ENFORCEABLE JUDGMENT" means a judgment or order of a court or arbitral or
regulatory authority as to which the period, if any, during which the
enforcement of such judgment or order is stayed shall have expired. A judgment
or order which is under appeal or as to which the time in which to perfect an
appeal has not expired shall not be deemed an Enforceable Judgment so long as
enforcement thereof is effectively stayed pending the outcome of such appeal or
the expiration of such period, as the case may be.

     "ENVIRONMENTAL LAWS" means any and all federal, state, local and foreign
statutes, laws, regulations, ordinances, rules, judgments, orders, decrees,
permits, concessions, grants, franchises, licenses, agreements or other
governmental restrictions relating to the environment or to emissions,
discharges or releases of pollutants, contaminants, petroleum or petroleum
products, chemicals or industrial, toxic or hazardous substances or wastes into
the environment including, without limitation, ambient air, surface water,
ground water, or land, or otherwise relating to the manufacture, processing,
distribution, use, treatment, storage, disposal, transport or handling of
pollutants, contaminants, petroleum or petroleum products, chemicals or
industrial, toxic or hazardous substances or wastes or the clean-up or other
remediation thereof.

     "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended, or any successor statute.

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

     "EURO-DOLLAR BUSINESS DAY" means any Domestic Business Day on which
commercial banks are open for international business (including dealings in
dollar deposits) in London.

     "EURO-DOLLAR LENDING OFFICE" means, as to each Lender, its office, branch
or affiliate located at its address set forth in its Administrative
Questionnaire (or identified in its Administrative Questionnaire as its
Euro-Dollar Lending Office) or such other office, branch or affiliate of such
Lender as it may hereafter designate as its Euro-Dollar Lending Office by notice
to the Borrower and the Administrative Agent.

     "EURO-DOLLAR LOAN" means a Loan made or to be made by a Lender in
accordance with the applicable Notice of Borrowing which bears interest based on
the Euro-Dollar Rate.

     "EURO-DOLLAR MARGIN" means, as of any date of determination, a per
annum rate equal to the rate set forth below opposite the then applicable
Status, set forth below:

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

  Status           Level I   Level II   Level III   Level IV   Level V  Level VI
================================================================================

Euro-Dollar Loan    .470%     .625%      1.100%      1.175%     1.250%   1.300%
- --------------------------------------------------------------------------------


     "EURO-DOLLAR RATE" means, with respect to any Interest Period, the average
(rounded upward, if necessary, to the next higher 1/16 of 1%) of the respective
rates per annum at which deposits in dollars are offered to each of the
Reference Banks in the London interbank market at approximately 11:00 A.M.
(London time) two Euro-Dollar Business Days before the first day of such
Interest Period in an amount approximately equal to the principal amount of the
Euro-Dollar Loan of such Reference Bank

                                       5

<PAGE>

or, in the case of a Competitive Bid Borrowing, in an amount substantially equal
to the amount that would be the Reference Bank's respective Shares of such
Borrowing if such Borrowing were to be a Euro-Dollar Loan, in each case, to
which such Interest Period is to apply and for a period of time comparable to
such Interest Period.

     "EURO-DOLLAR RESERVE PERCENTAGE" means for any day that percentage
(expressed as a decimal) which is in effect on such day, as prescribed by the
Board of Governors of the Federal Reserve System (or any successor) for
determining the maximum reserve requirement for a member bank of the Federal
Reserve System in New York City with deposits exceeding five billion dollars in
respect of "EUROCURRENCY LIABILITIES" (or in respect of any other category of
liabilities which includes deposits by reference to which the interest rate on
Euro-Dollar Loans or Competitive Bid Euro-Dollar Rate Loans is determined or any
category of extensions of credit or other assets which includes loans by a
non-United States office of any Lender to United States residents).

     "EVENT OF DEFAULT" has the meaning set forth in Section 6.01.

     "EXISTING CREDIT AGREEMENT" means that certain Five Year Credit Agreement
dated as of December 6, 1996, among the Borrower, the lenders party thereto and
Morgan Guaranty Trust Company of New York, as agent, as amended, supplemented or
otherwise modified from time to time.

     "EXTENSION DATE" has the meaning specified in Section 2.17(a).

     "FACILITY FEE RATE" means, as of any date of determination, a per annum
rate equal to the rate set forth below opposite the then applicable Status, set
forth below:

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

     Status        Level I   Level II   Level III   Level IV   Level V  Level VI
================================================================================

Facility Fee Rate   .080%     .125%      .150%       .200%      .250%    .325%
- --------------------------------------------------------------------------------


     "FEDERAL FUNDS RATE" means, for any day, the rate per annum (rounded
upward, if necessary, to the nearest 1/100th 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 of New York on the Domestic Business Day
next succeeding such day; provided that (i) if such day is not a Domestic
Business Day, the Federal Funds Rate for such day shall be such rate on such
transactions on the next preceding Domestic Business Day as so published on the
next succeeding Domestic Business Day, and (ii) if no such rate is so published
on such next succeeding Domestic Business Day, the Federal Funds Rate for such
day shall be the average rate quoted to the Administrative Agent on such day (or
next preceding Domestic Business Day) on such transactions as determined by the
Administrative Agent.

     "FIXED RATE LOAN" means a Loan made pursuant to Section 2.03 that bears
interest at a fixed rate per annum.

     "FTI" means FMC Technologies, Inc.

     "GAAP" means generally accepted accounting principles in the United States
of America as in effect from time to time set forth in the opinions and
pronouncements of the Accounting Principles Board and the American Institute of
Certified Public Accountants and the statements and pronouncements of the
Financial Accounting Standards Board, or in such other statements by such other
entity as may be

                                       6


<PAGE>

in general use by significant segments of the accounting profession, which are
applicable to the circumstances as of the date of determination.

     "GUARANTEE" by any Person means any obligation, contingent or otherwise, of
such Person directly or indirectly guaranteeing any Debt of any other Person
and, without limiting the generality of the foregoing, any obligation, direct or
indirect, contingent or otherwise, of such Person (i) to purchase or pay (or
advance or supply funds for the purchase or payment of) such Debt (whether
arising by virtue of partnership arrangements, by agreement to keep-well (but
excluding any agreement related to the Shortfall Amount), to purchase assets,
goods, securities or services, to take-or-pay, or to maintain financial
statement conditions or otherwise) or (ii) entered into for the purpose of
assuring in any other manner the obligee of such Debt of the payment thereof or
to protect such obligee against loss in respect thereof (in whole or in part);
provided that the term Guarantee shall not include endorsements for collection
or deposit in the ordinary course of business. The term "Guarantee" used as a
verb has a corresponding meaning.

     "HEDGING CONTRACTS" means all Interest Rate Contracts, foreign currency
exchange contracts, currency swap or option agreements, equity deriviatives,
forward rate contracts, commodity swap, purchase or option agreements, and all
other similar agreements or arrangements designed to alter the risks of any
Person arising from fluctuations in interest rates, currency values, equity
values or commodity prices.

     "INCREASED COMMITMENTS" has the meaning set forth in Section 2.18(a).

     "INTEREST PERIOD" means: (i) with respect to each Euro-Dollar Borrowing,
the period commencing on the date of such Euro-Dollar Borrowing and ending one,
two, three, six or, if available by all of the Lenders, nine months thereafter,
as the Borrower may elect in the applicable Notice of Borrowing and, (ii) with
respect to a Competitive Bid Euro-Dollar Rate Borrowing, the period commencing
on the date of such Borrowing and ending on the date specified in the offer
pursuant to which the Borrower has accepted such Borrowing under the competitive
bidding procedure described in Section 2.03; provided that:

          (a) any Interest Period which would otherwise end on a day which is
     not a Euro-Dollar Business Day shall be extended to the next succeeding
     Euro-Dollar Business Day unless such Euro-Dollar Business Day falls in
     another calendar month, in which case such Interest Period shall end on the
     immediately preceding Euro-Dollar Business Day;

          (b) any Interest Period which begins on the last Euro-Dollar 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, subject to clause (c) below, end on the last Euro-Dollar Business
     Day of the calendar month at the end of such Interest Period; and

          (c) the Borrower may not elect any Interest Period that would end
     after the Commitment Termination Date.

     (iii) with respect to each Base Rate Borrowing, the period commencing on
the date of such Borrowing and ending 30 days thereafter; provided that:

          (a) any Interest Period (other than an Interest Period determined
     pursuant to clause (b) below) which would otherwise end on a day which is
     not a Domestic Business Day shall be extended to the next succeeding
     Domestic Business Day; and


                                       7

<PAGE>


          (b) any Interest Period which would otherwise end after the Commitment
     Termination Date shall end on the Commitment Termination Date.

     "INTEREST RATE CONTRACTS" means all interest rate swap agreements, interest
rate cap agreements, interest rate collar agreements and interest rate
insurance.

     "INTERNAL REVENUE CODE" means the Internal Revenue Code of 1986, as
amended, or any successor statute.

     "INVESTMENT" means any investment by any Person (the "INVESTOR") in any
other Person (the "INVESTEE"), whether by means of share purchase, capital
contribution, loan, time deposit or otherwise. It is understood that neither (i)
an item reflected in the financial statements of the Investor as an expense nor
(ii) an adjustment to the carrying value of the Investee in the financial
statements of the Investor (such as by reason of increased retained earnings of
the Investee) constitutes the making or acquisition of an Investment for
purposes hereof.

     "LENDER" means each of the financial institution listed on Schedule I
hereto, each Assignee which becomes a Lender pursuant to Section 9.07(c), each
financial institution which becomes a Lender pursuant to Section 2.17(b), each
Additional Lender which becomes a Lender pursuant to Section 2.18, and their
respective successors.

     "LIEN" means, with respect to any asset, any mortgage, lien, pledge,
charge, security interest or encumbrance of any kind in respect of such asset.
For the purpose of this Agreement, the Borrower or any Subsidiary shall be
deemed to own subject to a Lien any asset that it has acquired or holds subject
to the interest of a vendor or lessor under any conditional sale agreement,
capital lease or other title retention agreement relating to such asset.

     "LOAN" means a Base Rate Loan or a Euro-Dollar Loan made by a Lender
pursuant to Section 2.01 or a Competitive Bid Loan made by a Lender pursuant to
Section 2.03. "LOANS" means Base Rate Loans, Euro-Dollar Loans or Competitive
Bid Loans or any combination of the foregoing.

     "LOAN DOCUMENTS" means this Agreement, the Notes, and any other documents
to be delivered thereunder or in connection therewith and all amendments thereto
and substitutions and replacements therefor and modifications thereof.

     "MATERIAL ADVERSE EFFECT" means a material adverse effect (i) on the
business, condition (financial or otherwise) or operations or prospects of the
Borrower and its Consolidated Subsidiaries, taken as a whole, or (ii) on the
legality, validity or enforceability of this Agreement or the Notes.

     "MATERIAL FINANCIAL OBLIGATIONS" means a principal or face amount of Debt
(other than Debt under this Agreement) and/or payment in respect of Derivatives
Obligations of the Borrower and/or one or more of its Subsidiaries, arising in
one or more related or unrelated transactions, exceeding in the aggregate
$25,000,000.

     "MATERIAL PLAN" means any Plan or Plans having aggregate Unfunded
Liabilities in excess of $25,000,000.

     "MATERIAL SUBSIDIARY" means any Restricted Subsidiary in which the Borrower
has an Investment, direct or indirect, of at least $10,000,000, as listed on
Schedule 1.01(b) hereto.

                                       8

<PAGE>

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

     "MULTIEMPLOYER PLAN" means at any time an employee pension benefit plan
within the meaning of Section 4001(a)(3) of ERISA to which any member of the
ERISA Group is then making or accruing an obligation to make contributions or
has within the preceding five plan years made contributions, including for these
purposes any Person which ceased to be a member of the ERISA Group during such
five year period.

     "NON-CONSENTING LENDER" has the meaning set forth in Section 2.17(a).

     "NON-RECURRING ITEMS" means, to the extent reflected in the determination
of Consolidated Net Income for any period, provisions for restructuring,
discontinued operations, special reserves or other similar charges including
write-downs or write-offs of assets (other than write-downs resulting from
foreign currency translations).

     "NOTES" means promissory notes of the Borrower, substantially in the form
of Exhibit A-1 or A-2 hereto, as applicable, evidencing the obligation of the
Borrower to repay the Loans made to it, and "NOTE" means any one of such
promissory notes issued hereunder.

     "NOTICE OF BORROWING" has the meaning set forth in Section 2.02 and, with
respect to any Competitive Bid Loans, means a Notice of Competitive Bid
Borrowing, as the case may be.

     "NOTICE OF COMPETITIVE BID BORROWING" has the meaning specified in Section
2.03(a)(i).

     "PARENT" means with respect to any Lender, any Person controlling such
Lender.

     "PARTICIPANT" has the meaning set forth in Section 9.07(b).

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

     "PERSON" means an individual, a corporation, a partnership, a limited
liability company, an association, a trust or any other entity or organization,
including a government or political subdivision or an agency or instrumentality
thereof.

     "PLAN" means at any time an employee pension benefit plan (other than a
Multiemployer Plan) which is covered by Title IV of ERISA or subject to the
minimum funding standards under Section 412 of the Internal Revenue Code and
either (i) is maintained, or contributed to, by any member of the ERISA Group
for employees of any member of the ERISA Group or (ii) has at any time within
the preceding five years been maintained, or contributed to, by any Person which
was at such time a member of the ERISA Group for employees of any Person which
was at such time a member of the ERISA Group.

     "PRINCIPAL OFFICER" means any of the following officers of the Borrower:
Chairman of the Board, President, Secretary, Treasurer, or any Vice President.
If any of the titles of the preceding officers are changed after the date
hereof, the term "PRINCIPAL OFFICER" shall thereafter mean any officer
performing substantially the same functions as are presently performed by one or
more of the officers listed in the first sentence of this definition.

     "QUALIFICATION" means, with respect to any certificate covering financial
statements, a qualification to such certificate (such as a "SUBJECT TO" or
"EXCEPT FOR" statement therein) (i) resulting from a limitation on the scope of
examination of such financial statements or the underlying data, (ii) as

                                       9

<PAGE>

to the capability of the Person whose financial statements are certified to
continue operations as a going concern or (iii) which could be eliminated by
changes in financial statements or notes thereto covered by such certificate
(such as by the creation of or increase in a reserve or a decrease in the
carrying value of assets) and which if so eliminated by the making of any such
change and after giving effect thereto would occasion a Default; provided that
neither of the following shall constitute a Qualification: (a) a consistency
exception relating to a change in accounting principles with which the
independent public accountants for the Person whose financial statements are
being certified have concurred or (b) a qualification relating to the outcome or
disposition of threatened litigation, pending litigation being contested in good
faith, pending or threatened claims or other contingencies, the impact of which
litigation, claims or contingencies cannot be determined with sufficient
certainty to permit quantification in such financial statements.

     "REFERENCE BANKS" means Citibank and Bank of America, N.A.

     "REGULATIONS T, X AND U" means such Regulations of the Board of Governors
of the Federal Reserve System, as in effect from time to time.

     "REQUIRED LENDERS" means at any time Lenders having at least 66 2/3% of the
aggregate amount of the Commitments or, if the Commitments have been terminated,
holding Notes evidencing at least 66 2/3% of the aggregate unpaid principal
amount of the Loans (excluding Competitive Bid Loans).

     "RESTRICTED SUBSIDIARY" means any Subsidiary other than an Unrestricted
Subsidiary.

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

     "SHARE" means, with respect to each Lender, a fraction the numerator of
which is such Lender's Commitment and the denominator of which is the aggregate
amount of the Commitments.

     "SHORTFALL AMOUNT" means, during any period, the Borrower's pro rata share
of the cash amount required to be contributed to Astaris LLC in accordance with
the terms of the guarantee agreement entered into by the Borrower in connection
with the Five-Year Credit Agreement dated September 14, 2000, among Astaris LLC
and the lenders named therein, as amended from time to time.

     "STATUS" refers to the determination of which of Level I Status, Level II
Status, Level III Status, Level IV Status or Level V Status exists at any date.

     "SUBSIDIARY" means any Person of which securities or other ownership
interests having ordinary voting power to elect a majority of the board of
directors or other persons performing similar functions are at the time directly
or indirectly owned by the Borrower. For purposes of this Agreement, FTI shall
not be deemed to be a Subsidiary.

     "UNFUNDED LIABILITIES" means, with respect to any Plan at any time, the
amount (if any) by which (i) the present value of all benefits under such Plan
exceeds (ii) the fair market value of all Plan assets allocable to such benefits
(excluding any accrued but unpaid contributions), all determined as of the then
most recent valuation date for such Plan, but only to the extent that such
excess represents a potential liability of a member of the ERISA Group to the
PBGC or any other Person under Title IV of ERISA.

     "UNRESTRICTED SUBSIDIARY" means (i) FMC Funding Corporation and Astaris LLC
and (ii) any other Subsidiary of the Borrower which is declared to be an
Unrestricted Subsidiary by the Borrower by notice to the Lenders; provided that
the sum of all (x) Investments of the Borrower and its Restricted


                                       10

<PAGE>

Subsidiaries in any Subsidiary included in clause (i) above after the date
hereof and (y) Investments of the Borrower and its Restricted Subsidiaries in
Unrestricted Subsidiaries so declared under clause (ii) above shall not
aggregate more than $75,000,000.

     "UTILIZATION FEE RATE" means a rate per annum equal to (i) .100% during a
Level I Status and (ii) .125% during a Level II Status, a Level III Status and a
Level IV Status, (iii) .250% during a Level V Status and (iv) .375% during a
Level VI Status.

     SECTION 1.02. Accounting Terms and Determinations. Unless otherwise
                   -----------------------------------
specified herein, all accounting terms used herein shall be interpreted, all
accounting determinations hereunder shall be made, and all financial statements
required to be delivered hereunder shall be prepared, in accordance with United
States generally accepted accounting principles as in effect from time to time
applied on a basis consistent (except for changes concurred in by the Borrower's
independent public accountants) with the most recent audited consolidated
financial statements of the Borrower and its Consolidated Subsidiaries delivered
to the Lenders; provided that if the Borrower notifies the Administrative Agent
that the Borrower wishes to amend any covenant contained in Article V to
eliminate the effect of any change in generally accepted accounting principles
on the operation of such covenant (or if the Administrative Agent notifies the
Borrower that the Required Lenders wish to amend Article V for such purpose),
then the Borrower's compliance with such covenant shall be determined on the
basis of generally accepted accounting principles in effect immediately before
the relevant change in generally accepted accounting principles became
effective, unless or until either such notice is withdrawn or such covenant is
amended in a manner satisfactory to the Borrower and the Required Lenders. The
Administrative Agent shall promptly notify the Lenders of any notice received
from the Borrower pursuant to this Section 1.02.

     SECTION 1.03. Types of Borrowings. The term "BORROWING" denotes the
                   -------------------
aggregation of Loans of one or more Lenders to be made to the Borrower pursuant
to Article II on a single date and for a single Interest Period. Borrowings are
classified for purposes of this Agreement by reference to the pricing of Loans
comprising such Borrowing (e.g., a "EURO-DOLLAR BORROWING" is a Borrowing
comprised of Euro-Dollar Loans, a "BASE RATE BORROWING" is a Borrowing comprised
of Base Rate Loans and a "COMPETITIVE BID BORROWING" is a Borrowing comprised of
Competitive Bid Loans).

     SECTION 1.04. Pricing Levels. For purposes of this Agreement, the
                   --------------
following terms have the following meanings, subject to the concluding paragraph
of this Section 1.04:

     "LEVEL I STATUS" exists at any date if, at such date, the Borrower's senior
unsecured long-term debt is rated A- and A3 or higher.

     "LEVEL II STATUS" exists at any date if, at such date, the Borrower's
senior unsecured long-term debt is rated BBB+ and Baa1.

     "LEVEL III STATUS" exists at any date if, at such date, the Borrower's
senior unsecured long-term debt is rated BBB and Baa2.

     "LEVEL IV STATUS" exists at any date if, at such date, the Borrower's
senior unsecured long-term debt is rated BBB- and Baa3.

     "LEVEL V STATUS" exists at any date if, at such date, the Borrower's senior
unsecured long-term debt is rated BBB- or Baa3.

     "LEVEL VI STATUS" exists at any date if, at such date, no other Status
exists.

                                       11

<PAGE>

     The credit ratings to be utilized for purposes of the Euro-Dollar Margin,
the Utilization Fee Rate and the Facility Fee Rate are those assigned by S&P or
Moody's to the senior unsecured long-term debt securities of the Borrower
without third-party credit enhancement, and any rating assigned to any other
debt security of the Borrower shall be disregarded. The rating in effect at any
date is that in effect at the close of business on such date.

     In the case of split ratings with respect to pricing from S&P and Moody's,
the rating to be used to determine Status is the higher of the two (e.g. BBB+and
Baa2 results in Level II Status); provided that in the event the split is more
than one full category, the average (or the higher of two intermediate ratings)
shall be used (e.g., BBB+ and Baa3 results in Level III Status, as does BBB+ and
Ba1).

                                   ARTICLE II

                                   THE CREDITS

     SECTION 2.01. Commitments to Lend. Subject to the terms and conditions set
                   -------------------
forth in this Agreement, each Lender severally and not jointly agrees, during
the period from the Effective Date to but not including the Commitment
Termination Date, to lend to the Borrower in United States Dollars pursuant to
this Section 2.01 from time to time amounts such that the aggregate principal
amount of Loans made by such Lender to the Borrower at any one time outstanding
shall not exceed the amount of its Commitment. Each Borrowing under this Section
2.01 shall be in an aggregate principal amount of $10,000,000 or any larger
multiple of $1,000,000 (except that any such Borrowing may be in the aggregate
amount available in accordance with Section 3.02(b)(iii)) and shall be made from
the several Lenders ratably in proportion to their respective Commitments.
Within the limits specified in this Agreement, the Borrower may borrow pursuant
to this Section 2.01, repay, or to the extent permitted by Section 2.11, prepay
Loans and reborrow (other than Competitive Bid Loans) at any time under this
Section 2.01. Within the limits of each Lender's Commitment, the aggregate
amount of the Commitments of the Lenders shall be deemed used from time to time
to the extent of the aggregate amount of the Competitive Bid Loans then
outstanding, which deemed usage shall be allocated among the Lenders according
to their respective Shares (such deemed usage being a "COMPETITIVE BID LOAN
REDUCTION").

     SECTION 2.02. Notice of Borrowings. The Borrower shall give the
                   --------------------
Administrative Agent notice (a "NOTICE OF BORROWING") not later than 11:00 A.M.
(New York City time) on (x) the date of each Base Rate Borrowing and (y) the
third Euro-Dollar Business Day before each Euro-Dollar Borrowing, specifying:

          (a) the date of such Borrowing, which shall be a Domestic Business Day
     in the case of a Base Rate Borrowing or a Euro-Dollar Business Day in the
     case of a Euro-Dollar Borrowing,

          (b) the aggregate amount of such Borrowing,

          (c) whether the Loans comprising such Borrowing are to be Base Rate
     Loans or Euro-Dollar Loans, and

          (d) in the case of a Euro-Dollar Borrowing, the duration of the
     Interest Period applicable thereto, subject to the provisions of the
     definition of Interest Period.

Notwithstanding the foregoing, no more than ten Euro-Dollar Borrowings shall be
outstanding at any one time, and any Borrowing which would exceed such
limitation shall be made as a Base Rate Borrowing.

                                       12

<PAGE>


     SECTION 2.03. Competitive Bid Loans.
                   ---------------------

          (a) Each Lender severally agrees that the Borrower may make
     Competitive Bid Borrowings under this Section 2.03 from time to time on any
     Domestic Business Day during the period from the date hereof until the date
     occurring 30 days prior to the Commitment Termination Date in the manner
     set forth below; provided, however, that, following the making of each
     Competitive Bid Borrowing, the aggregate amount of the Loans then
     outstanding shall not exceed the aggregate amount of the Commitments of the
     Lenders (computed without regard to any Competitive Bid Loan Reduction).

               (i) The Borrower may request a Competitive Bid Borrowing under
          this Section 2.03 by delivering to the Administrative Agent, by
          telecopier, confirmed immediately in writing, a notice of a
          Competitive Bid Borrowing (a "NOTICE OF COMPETITIVE BID BORROWING"),
          specifying therein (w) the requested date of such proposed Competitive
          Bid Borrowing, (x) the aggregate principal amount of such proposed
          Competitive Bid Borrowing, (y) in the case of a Competitive Bid
          Borrowing consisting of Competitive Bid Euro-Dollar Rate Loans, the
          Interest Period therefor, or in the case of a Competitive Bid
          Borrowing consisting of Fixed Rate Loans, the maturity date for
          repayment of each Fixed Rate Loan to be made as part of such
          Competitive Bid Borrowing (which maturity date may not be earlier than
          the date occurring 30 days after the date of such Competitive Bid
          Borrowing or later than the Commitment Termination Date) and the
          interest payment date or dates relating thereto, and (z) any other
          terms to be applicable to such Competitive Bid Borrowing, not later
          than 10:30 A.M. (New York City time) (A) at least one Domestic
          Business Day prior to the date of the proposed Competitive Bid
          Borrowing, if the Borrower shall specify in the Notice of Competitive
          Bid Borrowing that the Loans comprising such Competitive Bid Borrowing
          shall be Fixed Rate Loans and (B) at least four Domestic Business Days
          prior to the date of the proposed Competitive Bid Borrowing, if the
          Borrower shall specify in the Notice of Competitive Bid Borrowing that
          the Loans comprising such Competitive Bid Borrowing shall be
          Competitive Bid Euro-Dollar Rate Loans. Each Notice of Competitive Bid
          Borrowing shall be irrevocable and binding on the Borrower, except as
          provided in Section 2.03(a)(iii)(x). The Administrative Agent shall in
          turn promptly notify each Lender of each request for a Competitive Bid
          Borrowing received by it from the Borrower by sending such Lender a
          copy of the related Notice of Competitive Bid Borrowing.

               (ii) Each Lender may, if, in its sole discretion, it elects to do
          so, offer, irrevocably, to make one or more Competitive Bid Loans to
          the Borrower as part of such proposed Competitive Bid Borrowing, by
          notifying the Administrative Agent (which shall give prompt notice
          thereof to the Borrower) (A) before 9:30 A.M. (New York City time) on
          the date of such proposed Competitive Bid Borrowing, in the case of a
          Competitive Bid Borrowing consisting of Fixed Rate Loans and (B)
          before 10:00 A.M. (New York City time) three Business Days before the
          date of such proposed Competitive Bid Borrowing, in the case of a
          Competitive Bid Borrowing consisting of Competitive Bid Euro-Dollar
          Rate Loans, of (x) the minimum and maximum amount of Fixed Rate Loans
          (if any) which such Lender is prepared to make as part of such
          requested Competitive Bid Borrowing and the fixed rate of interest per
          annum which such Lender is prepared to offer in respect thereof, (y)
          the minimum and maximum amount of Competitive Bid Euro-Dollar Rate
          Loans (if any) which such Lender is prepared to make as part of such
          requested Competitive Bid Borrowing and the interest margin (expressed
          as a percentage rate per annum) to be added to or subtracted from the
          Euro-Dollar Rate and the Interest Period corresponding thereto which
          such Lender is prepared to offer in respect thereof and (z) such
          Lender's Competitive Bid Lending Office with respect to such
          Competitive Bid Loans; provided, however, that the amounts of such
          proposed Competitive Bid Loans offered by such Lender may, subject to
          the proviso to the first sentence of this Section 2.03(a), exceed such
          Lender's Commitment, if any, and provided, further, that if the
          Administrative Agent in its capacity as a

                                       13

<PAGE>

          Lender shall, in its sole discretion, elect to make any such offer, it
          shall notify the Borrower of such offer at least 30 minutes before the
          time and on the date on which notice of such election is to be given
          to the Administrative Agent, by the other Lenders. If any Lender shall
          elect not to make such an offer in respect of any proposed Competitive
          Bid Borrowing, such Lender shall so notify the Administrative Agent
          thereof before the relevant times referred to in clauses (A) and (B)
          of this paragraph (ii) and such Lender shall not be obligated to, and
          shall not, make any Competitive Bid Loan as part of such Competitive
          Bid Borrowing; provided, however, that the failure by any Lender to
          give such notice shall not cause such Lender to be obligated to make
          any Competitive Bid Loan as part of such proposed Competitive Bid
          Borrowing.

               (iii) The Borrower shall, in turn, (A) before 10:30 A.M. (New
          York City time) on the date of such proposed Competitive Bid
          Borrowing, in the case of a Competitive Bid Borrowing consisting of
          Fixed Rate Loans, and (B) before 11:00 A.M. (New York City time) three
          Business Days before the date of such proposed Competitive Bid
          Borrowing, in the case of a Competitive Bid Borrowing consisting of
          Competitive Bid Euro-Dollar Rate Loans, either:

                    (x) cancel such Competitive Bid Borrowing by giving the
               Administrative Agent notice to that effect, or

                    (y) accept one or more of the offers made by any Lender or
               Lenders pursuant to paragraph (ii) above, in its sole discretion,
               by giving notice to the Administrative Agent of the amount of
               each Competitive Bid Loan (which amount shall be equal to or
               greater than the minimum amount, and equal to or less than the
               maximum amount, notified to the Borrower by the Administrative
               Agent on behalf of such Lender for such Competitive Bid Loan
               pursuant to paragraph (ii) above) to be made by each Lender as
               part of such Competitive Bid Borrowing, and reject any remaining
               offers made by Lenders pursuant to paragraph (ii) above by giving
               the Administrative Agent notice to that effect; provided,
               however, that if the Borrower elects to accept the offers made by
               any Lender or Lenders to make Competitive Bid Loans, it shall
               accept such offers in order of the lowest to the highest rates of
               interest offered by such Lenders. If two or more Lenders have
               offered the same interest rate, the amount to be borrowed at such
               interest rate will be allocated among such Lenders in proportion
               to the amount that each such Lender offered at such interest
               rate; and provided, further, that the aggregate amount of offers
               so accepted by the Borrower shall not exceed the amount of
               respective Competitive Bid Loans proposed by the Borrower in the
               relevant Notice of Competitive Bid Borrowing.

               (iv) If the Borrower notifies the Administrative Agent that such
          Competitive Bid Borrowing is cancelled pursuant to paragraph (iii)(x)
          above, the Administrative Agent shall give prompt notice thereof to
          the Lenders and such Competitive Bid Borrowing shall not be made.

               (v) If the Borrower accepts one or more of the offers made by any
          Lender or Lenders pursuant to paragraph (iii)(y) above, the
          Administrative Agent shall in turn promptly notify (A) each Lender
          that has made an offer as described in paragraph (ii) above, of the
          date and aggregate amount of such Competitive Bid Borrowing and
          whether or not any offer or offers made by such Lender pursuant to
          paragraph (ii) above have been accepted by the Borrower, (B) each
          Lender that is to make a Competitive Bid Loan as part of such
          Competitive Bid Borrowing, of the amount of each Competitive Bid Loan
          to be made by such Lender as part of such Competitive Bid Borrowing,
          and (C) each Lender that is to make a Competitive Bid Loan as part of
          such Competitive Bid Borrowing, upon receipt, that the Administrative
          Agent has received forms of documents appearing to fulfill the
          applicable conditions set forth in Article III. Each

                                       14

<PAGE>

          Lender that is to make a Competitive Bid Loan as part of such
          Competitive Bid Borrowing shall, before 11:00 A.M. (New York City
          time) on the date of such Competitive Bid Borrowing specified in the
          notice received from the Administrative Agent pursuant to clause (A)
          of the preceding sentence or any later time when such Lender shall
          have received notice from the Administrative Agent pursuant to clause
          (C) of the preceding sentence, make available for the account of its
          Applicable Lending Office to the Administrative Agent in same day
          funds, such Lender's portion of such Competitive Bid Borrowing. Upon
          fulfillment of the applicable conditions set forth in Article III and
          after receipt by the Administrative Agent of such funds, the
          Administrative Agent will make such funds available to the Borrower at
          the location specified by the Borrower in its Notice of Competitive
          Bid Borrowing. Promptly after each Competitive Bid Borrowing, the
          Administrative Agent will notify each Lender of the amount of the
          Competitive Bid Borrowing, the consequent Competitive Bid Loan
          Reduction and the dates upon which such Competitive Bid Loan Reduction
          commenced and will terminate.

               (vi) If the Borrower notifies the Administrative Agent that it
          accepts one or more of the offers made by any Lender or Lenders
          pursuant to paragraph (iii)(y) above, such notice of acceptance shall
          be irrevocable and binding on the Borrower. The Borrower shall
          indemnify each Lender against any loss, cost or expense incurred by
          such Lender as a result of any failure to fulfill on or before the
          date specified in the related Notice of Competitive Bid Borrowing for
          such Competitive Bid Borrowing the applicable conditions set forth in
          Article III, including, without limitation, any loss (excluding loss
          of anticipated profits), cost or expense incurred by reason of the
          liquidation or reemployment of deposits or other funds acquired by
          such Lender to fund the Competitive Bid Loan to be made by such Lender
          as part of such Competitive Bid Borrowing when such Competitive Bid
          Loan, as a result of such failure, is not made on such date.

          (b) Each Competitive Bid Borrowing shall be in an aggregate amount of
     $10,000,000 or an integral multiple of $1,000,000 in excess thereof.

          (c) Within the limits and on the conditions set forth in this Section
     2.03, the Borrower may from time to time borrow under this Section 2.03,
     repay or prepay pursuant to subsection (d) below, and reborrow under this
     Section 2.03; provided, however, that a Competitive Bid Borrowing shall not
     be made within three Business Days of the date of any other Competitive Bid
     Borrowing.

          (d) The Borrower shall repay to the Administrative Agent for the
     account of each Lender that has made a Competitive Bid Loan, on the
     maturity date of each Competitive Bid Loan (such maturity date being that
     specified by the Borrower for repayment of such Competitive Bid Loan in the
     related Notice of Competitive Bid Borrowing delivered pursuant to
     subsection (a)(i) above and provided in the Competitive Bid Loan Note
     evidencing such Competitive Bid Loan), the then unpaid principal amount of
     such Competitive Bid Loan. The Borrower shall have no right to prepay any
     principal amount of any Competitive Bid Loan unless, and then only on the
     terms, specified by the Borrower for such Competitive Bid Loan in the
     related Notice of Competitive Bid Borrowing delivered pursuant to
     subsection (a)(i) above and set forth in the Competitive Bid Loan Note
     evidencing such Competitive Bid Loan.

          (e) The Borrower shall pay interest on the unpaid principal amount of
     each Competitive Bid Loan from the date of such Competitive Bid Loan to the
     date the principal amount of such Competitive Bid Loan is repaid in full,
     at the rate of interest for such Competitive Bid Loan specified by the
     Lender making such Competitive Bid Loan in its notice with respect thereto
     delivered pursuant to subsection (a)(ii) above, payable on the interest
     payment date or dates specified by the Borrower for such Competitive Bid
     Loan in the related Notice of Competitive Bid Borrowing delivered pursuant
     to subsection (a)(i) above, or as otherwise provided in the Competitive Bid
     Loan Note

                                       15

<PAGE>

     evidencing such Competitive Bid Loan. Upon the occurrence and during the
     continuance of an Event of Default, the Borrower shall pay interest on the
     amount of unpaid principal of, and accrued and unpaid interest on, each
     Competitive Bid Loan owing to a Lender, payable in arrears on the date or
     dates interest is payable thereon, at a rate per annum equal at all times
     to 2% per annum above the rate of interest per annum required to be paid on
     such Competitive Bid Loan pursuant to this paragraph (e), unless otherwise
     agreed between the Borrower and such Lender.

          (f) The Debt of the Borrower resulting from each Competitive Bid Loan
     made to the Borrower as part of a Competitive Bid Borrowing shall, if
     requested by any Lender making such Competitive Bid Loan, be evidenced by a
     separate Competitive Bid Loan Note of the Borrower payable to the order of
     such Lender.

     SECTION 2.04. Notice to Lenders; Funding of Loans.
                   -----------------------------------

          (a) Upon its receipt of a Notice of Borrowing, the Administrative
     Agent shall promptly notify each Lender of the contents thereof and of such
     Lender's Share (if any) of such Borrowing, and such Notice of Borrowing
     shall thereafter be irrevocable by the Borrower, except as specified in
     Section 2.03(a)(i).

          (b) Not later than 12:00 Noon (New York City time) on the date of each
     Borrowing (other than a Competitive Bid Borrowing), each Lender
     participating therein shall (except as provided in subsection (c) of this
     Section 2.04) make available its Share of such Borrowing, in Federal or
     other funds immediately available in New York City, to the Administrative
     Agent at its address specified pursuant to Section 9.01. Unless the
     Administrative Agent determines that any applicable condition specified in
     Article III has not been satisfied, the Administrative Agent will make the
     funds so received from the Lenders promptly available to the Borrower at
     the Administrative Agent's aforesaid address.

          (c) If any Lender makes a new Loan hereunder on a day on which the
     Borrower is to repay all or any part of an outstanding Loan from such
     Lender, such Lender shall apply the proceeds of its new Loan to make such
     repayment and only an amount equal to the difference (if any) between the
     amount being borrowed and the amount being repaid shall be made available
     by such Lender to the Administrative Agent as provided by subsection (b),
     or remitted by the Borrower to the Administrative Agent as provided in
     Section 2.12, as the case may be.

          (d) Unless the Administrative Agent shall have received notice from a
     Lender prior to the date of any Borrowing (other than a Competitive Bid
     Borrowing) that such Lender will not make available to the Administrative
     Agent such Lender's Share of such Borrowing, the Administrative Agent may
     assume that such Lender has made such Share available to the Administrative
     Agent on the date of such Borrowing in accordance with subsections (b) and
     (c) of this Section 2.04 and the Administrative Agent may, in reliance upon
     such assumption, make available to the Borrower on such date a
     corresponding amount. If and to the extent that such Lender shall not have
     so made such Share available to the Administrative Agent, such Lender and
     the Borrower severally and not jointly agree to repay to the Administrative
     Agent forthwith on demand such corresponding amount together with interest
     thereon, for each day from the date such amount is made available to the
     Borrower until the date such amount is repaid to the Administrative Agent,
     at (i) in the case of the Borrower, a rate per annum equal to the higher of
     the Federal Funds Rate and the interest rate applicable thereto pursuant to
     Section 2.07 and (ii) in the case of such Lender, the Federal Funds Rate.
     If such Lender shall repay to the Administrative Agent such corresponding
     amount, such amount so repaid shall constitute such Lender's Loan included
     in such Borrowing for purposes of this Agreement.

                                       16

<PAGE>

     SECTION 2.05. Notes.
                   -----

          (a) Subject to Section 2.03(f), the Loans of each Lender to the
     Borrower shall, if requested by such Lender, be evidenced by a single Note
     of the Borrower payable to the order of such Lender for the account of its
     Applicable Lending Office in an amount equal to such Lender's Commitment.

          (b) Upon receipt of any Lender's Note pursuant to Section 3.01(a), the
     Administrative Agent shall forward such Note to such Lender. Each Lender
     shall record in accordance with its usual business practices the date,
     amount, type and maturity of each Loan made by it and the date and amount
     of each payment of principal made by the Borrower with respect thereto, and
     may, if such Lender so elects in connection with any transfer or
     enforcement of its Note, endorse on the schedule forming a part thereof
     appropriate notations to evidence the foregoing information with respect to
     each such Loan then outstanding; provided that neither the failure of any
     Lender to make any such recordation or endorsement nor any error therein
     shall affect the obligations of the Borrower hereunder or under the Notes.
     Each Lender is hereby irrevocably authorized by the Borrower to so endorse
     its Note and to attach to and make a part of its Note a continuation of any
     such schedule as and when required.

     SECTION 2.06. Maturity of Loans. Each Loan included in any Borrowing shall
                   -----------------
mature, and the principal amount thereof shall be due and payable, on the last
day of the Interest Period applicable to such Borrowing; provided that all Loans
shall be due and payable on the Commitment Termination Date.

     SECTION 2.07. Interest Rates.
                   --------------

          (a) Each Base Rate Loan shall bear interest on the outstanding
     principal amount thereof, for each day from the date such Loan is made
     until it becomes due, at a rate per annum equal to the Base Rate for such
     day. Such interest shall be payable for each Interest Period on the last
     day thereof. Any overdue principal of or interest on any Base Rate Loan
     shall bear interest, payable on demand, for each day until paid at a rate
     per annum equal to the sum of 2% plus the rate otherwise applicable to Base
     Rate Loans for such day.

          (b) Each Euro-Dollar Loan shall bear interest on the outstanding
     principal amount thereof, for each day during the Interest Period
     applicable thereto, at a rate per annum equal to the sum of (i) the
     Euro-Dollar Rate applicable to such Interest Period and (ii) the
     Euro-Dollar Margin. Such interest shall be payable for each Interest Period
     on the last day thereof and, if such Interest Period is longer than three
     months, at intervals of three months after the first day thereof. Any
     overdue principal of or interest on any Euro-Dollar Loan shall bear
     interest, payable on demand, for each day from and including the date
     payment thereof was due to but excluding the date of actual payment, at a
     rate per annum equal to the sum of 2% plus the higher of (i) the sum of the
     Euro-Dollar Margin for such day plus the Euro-Dollar Rate applicable to the
     Interest Period for such Loan and (ii) the sum of the Euro-Dollar Margin
     plus the quotient obtained (rounded upward, if necessary, to the next
     higher 1/100 of 1%) by dividing (x) the average (rounded upward, if
     necessary, to the next higher 1/16 of 1%) of the respective rates per annum
     at which one day (or, if such amount due remains unpaid more than three
     Euro-Dollar Business Days, then for such period of time not longer than
     three months as the Administrative Agent may select) deposits in dollars in
     an amount approximately equal to such overdue payment due to each of the
     Reference Banks are offered to such Euro-Dollar Reference Bank in the
     London interbank market for the applicable period determined as provided
     above by (y) 1.00 minus the Euro-Dollar Reserve Percentage (or, if the
     circumstances described in clause (a) or (b) of Section 8.01 shall exist,
     at a rate per annum equal to the sum of 2% plus the rate applicable to Base
     Rate Loans for such day).

                                       17

<PAGE>

          (c) The Administrative Agent shall determine each interest rate
     applicable to the Loans hereunder. The Administrative Agent shall give
     prompt notice to the Borrower and the participating Lenders of each rate of
     interest so determined, and its determination thereof shall be conclusive
     in the absence of manifest error.

          (d) Each Reference Bank agrees to use its best efforts to furnish
     quotations to the Administrative Agent as contemplated by this Section
     2.07. If any Reference Bank does not furnish a timely quotation, the
     Administrative Agent shall determine the relevant interest rate on the
     basis of the quotation or quotations furnished by the remaining Reference
     Bank or Banks or, if none of such quotations is available on a timely
     basis, the provisions of Section 8.01 shall apply.

          (e) Notwithstanding the rates of interest specified in this Section
     2.07 or elsewhere herein, effective immediately upon the occurrence of an
     Event of Default, and for as long thereafter as such Event of Default shall
     be continuing, the principal balance of all Loans shall bear interest,
     payable on demand, for each day from and including the date payment thereof
     was due, to but excluding the date of actual payment, at a rate per annum
     equal to the sum of 2% plus the applicable interest rate then in effect for
     such day.


     SECTION 2.08. Fees.
                   ----

          (a) The Borrower shall pay to the Administrative Agent for the account
     of the Lenders ratably in proportion to their respective Shares (or, if the
     Commitments shall have been terminated, in proportion to the aggregate
     principal amount of their Loans (other than Competitive Bid Loans)
     outstanding), a facility fee at the Facility Fee Rate. Such facility fee
     shall accrue (i) from and including the Effective Date to but excluding the
     Commitment Termination Date, on the daily average aggregate amount of the
     Commitments (whether used or unused) and (ii) from and including the
     Commitment Termination Date to but excluding the date the Loans shall be
     repaid in their entirety, on the daily average aggregate outstanding
     principal amount of the Loans.

          (b) The Borrower agrees to pay to the Administrative Agent for the
     account of each Lender for (i) each date prior to the Commitment
     Termination Date on which the aggregate outstanding Loans exceed 33% of the
     Commitments and (ii) each date on which the average aggregate principal
     amount of outstanding Loans during the most recently completed 30-day
     period exceeds 33% of the Commitments, a fee on the aggregate amount of the
     outstanding Loans at the Utilization Fee Rate.

          (c) Accrued and unpaid fees under this Section 2.08 shall be payable
     quarterly in arrears on the last day of each March, June, September and
     December and any balance shall be payable upon the Commitment Termination
     Date.

                                       18

<PAGE>

     SECTION 2.09. Mandatory Termination of Commitments.
                   ------------------------------------

          (a) The Commitments shall terminate on the Commitment Termination
     Date, and any Loans then outstanding (together with accrued and unpaid
     interest thereon) shall be due and payable on such date. The aggregate
     outstanding principal amount of the Loans shall at no time exceed the
     aggregate of the Commitments. If on any date on which the Commitments are
     reduced the aggregate outstanding principal amount of the Loans exceeds the
     aggregate of the Commitments as so reduced, then the Borrower shall be
     obligated to repay (together with accrued and unpaid interest to the date
     of repayment) on such date a principal amount of the Loans equal to such
     excess.

          (b) Each Competitive Bid Loan shall be due and payable on the maturity
     date specified in the Borrower's Notice of Competitive Bid Borrowing
     requesting such Competitive Bid Loan (which such maturity date shall be not
     later than the Commitment Termination Date).

     SECTION 2.10. Optional Reduction of Commitments. The Borrower may,
                   ---------------------------------
upon at least three Domestic Business Days' notice to the Administrative Agent,
(i) terminate the Commitments at any time, in whole or in part, if no Loans are
outstanding at such time or (ii) ratably and permanently reduce from time to
time, by an aggregate amount of $10,000,000 or any larger multiple of $1,000,000
thereof, the aggregate amount of the Commitments in excess of the aggregate
outstanding principal amount of the Loans. Upon receipt of any notice pursuant
to this Section 2.10, the Administrative Agent shall promptly notify each of the
Lenders thereof. Commitments terminated or reduced pursuant to this Section 2.10
may not be reinstated.

     SECTION 2.11. Optional Prepayments.
                   --------------------

          (a) Subject in the case of any Euro-Dollar Loans to Section 2.13, the
     Borrower may, (x) upon notice to the Administrative Agent not later than
     10:30 A.M. (New York City time) on the date of prepayment, prepay any Base
     Rate Borrowing and (y) upon not less than two Euro-Dollar Business Days'
     notice to the Administrative Agent, prepay any Euro-Dollar Borrowing, in
     whole at any time, or in part from time to time in amounts aggregating
     $10,000,000 or any larger multiple of $1,000,000 thereof, by paying the
     principal amount being prepaid together with interest accrued and unpaid
     thereon to the date of prepayment. Each such optional prepayment shall be
     applied to prepay ratably the Loans of the several Lenders included in such
     Borrowing.

          (b) Competitive Bid Loans shall not be prepaid except as may be agreed
     by the Borrower and the affected Lender.

          (c) Upon receipt of a notice of prepayment pursuant to this Section
     2.11, the Administrative Agent shall promptly notify each Lender of the
     contents thereof and of such Lender's ratable share of such prepayment, and
     such notice shall thereafter be irrevocable by the Borrower.

     SECTION 2.12. Payments.
                   --------

          (a) The Borrower shall make each payment of principal of, and interest
     on, the Loans and of fees payable and of additional compensation hereunder,
     not later than 12:00 Noon (New York City time) on the date when due, in
     Federal or other funds immediately available, without set-off, counterclaim
     or deduction of any kind (except as otherwise expressly agreed), to the
     Administrative Agent at its address referred to in Section 9.01. The
     Administrative Agent will promptly distribute to each Lender in like funds
     its ratable share of each such payment received by the Administrative Agent
     for the account of the Lenders. Payments in respect of each Competitive Bid
     Loan Borrowing shall be distributed to each Lender participating in such
     Borrowing on a pro rata basis in accordance with the

                                       19

<PAGE>

     respective principal amounts of the Competitive Bid Loans comprising such
     Borrowing. The Borrower shall repay each Loan in full on a date which is no
     later than the Commitment Termination Date.

          (b) Whenever any payment of principal of, or interest on, the Base
     Rate Loans or Fixed Rate Loans or of fees or additional compensation
     hereunder shall be due on a day which is not a Domestic Business Day, the
     date for payment thereof shall be extended to the next succeeding Domestic
     Business Day. Whenever any payment of principal of, or interest on, the
     Euro-Dollar Loans or Competitive Bid Euro-Dollar Rate Loans shall be due on
     a day which is not a Euro-Dollar Business Day, the date for payment thereof
     shall be extended to the next succeeding Euro-Dollar Business Day unless
     such Euro-Dollar Business Day falls in another calendar month, in which
     case the date for payment thereof shall be the next preceding Euro-Dollar
     Business Day. If the date for any payment of principal is extended by
     operation of law or otherwise, interest thereon shall be payable for such
     extended time.

          (c) Unless the Administrative Agent shall have received notice from
     the Borrower prior to the date on which any payment is due to the Lenders
     hereunder that the Borrower will not make such payment in full, the
     Administrative Agent may assume that the Borrower has made such payment in
     full to the Administrative Agent on such date and the Administrative Agent
     may, in reliance upon such assumption, cause to be distributed to each
     Lender on such due date an amount equal to the amount then due such Lender.
     If and to the extent that the Borrower shall not have so made such payment,
     each Lender shall repay to the Administrative Agent forthwith on demand
     such amount distributed to such Lender together with interest thereon, for
     each day from the date such amount is distributed to such Lender until the
     date such Lender repays such amount to the Administrative Agent, at the
     Federal Funds Rate.

     SECTION 2.13. Funding Losses. If the Borrower makes any payment of
                   --------------
principal with respect to any Euro-Dollar Loan (pursuant to Article VI or VIII
or otherwise) on any day other than the last day of the Interest Period
applicable thereto, or if the Borrower fails to borrow or prepay any Euro-Dollar
Loans after notice has been given to any Lender in accordance with Section
2.04(a) or 2.11(c), the Borrower shall reimburse each Lender on demand for any
resulting loss or expense incurred by it (or by an existing or prospective
Participant in the related Loan), including any loss incurred in obtaining,
liquidating or employing deposits from third parties, but excluding loss of
margin for the period after any such payment or failure to borrow; provided that
such Lender shall have delivered to the Borrower a certificate as to the amount
of such loss or expense, which certificate shall be conclusive in the absence of
manifest error.

     SECTION 2.14. Computation of Interest and Fees. Interest based on the Base
                   --------------------------------
Rate hereunder (if based on clause (a) of the definition of "BASE RATE") shall
be computed on the basis of a year of 365 days (or 366 days in a leap year) and
paid for the actual number of days elapsed (including the first day but
excluding the last day). All other interest and fees shall be computed on the
basis of a year of 360 days and paid for the actual number of days elapsed
(including the first day but excluding the last day).

     SECTION 2.15. Regulation D Compensation. Each Lender may require the
                   -------------------------
Borrower to pay, contemporaneously with each payment of interest on Euro-Dollar
Loans and Competitive Bid Euro-Dollar Rate Loans, additional interest on the
related Euro-Dollar Loan or Competitive Bid Euro-Dollar Rate Loan, as
applicable, of such Lender at a rate per annum determined by such Lender up to
but not exceeding the excess of (i) (A) the applicable Euro-Dollar Rate divided
by (B) one minus the Euro-Dollar Reserve Percentage over (ii) the applicable
Euro-Dollar Rate. Any Lender wishing to require payment of such additional
interest (x) shall so notify the Borrower and the Administrative Agent, in which
case such additional interest on the Euro-Dollar Loans or Competitive Bid
Euro-Dollar Rate Loans, as applicable, of such Lender shall be payable to such
Lender at the place

                                       20

<PAGE>

indicated in such notice with respect to each Interest Period commencing at
least three Euro-Dollar Business Days after such Lender gives such notice and
(y) shall notify the Borrower at least five Euro-Dollar Business Days before
each date on which interest is payable on the Euro-Dollar Loans or Competitive
Bid Euro-Dollar Rate Loans, as applicable, of the amount then due under this
Section 2.15.

     SECTION 2.16. Withholding Tax Exemption. On the Effective Date, each Lender
                   -------------------------
that is not incorporated or organized under the laws of the United States of
America or a state thereof agrees that it will deliver to each of the Borrower
and the Administrative Agent two duly completed copies of United States Internal
Revenue Service (i) Form W-8ECI (claiming exemption from withholding because the
income is effectively connected with a U.S. trade or business) (or any successor
form) or (ii) Form W-8BEN (claiming exemption from, or a reduction of,
withholding tax under an income tax treaty) (or any successor form), certifying
in either case that such Lender is entitled to receive payments under this
Agreement and the Notes without deduction or withholding of any United States
federal income taxes. Each Lender which so delivers a Form W-8ECI or Form W-8BEN
further undertakes to deliver to each of the Borrower and the Administrative
Agent two additional copies of such form (or a successor form) on or before the
date that such form expires or becomes obsolete or after the occurrence of any
event requiring a change in the most recent form so delivered by it, and such
amendments thereto or extensions or renewals thereof as may be reasonably
requested by the Borrower or the Administrative Agent, in each case certifying
that such Lender is entitled to receive payments under this Agreement and the
Notes 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 with
respect to it and such Lender advises the Borrower and the Administrative Agent
that it is not capable of receiving payments without any deduction or
withholding of United States federal income tax.

     SECTION 2.17. Extension of Commitments.
                   ------------------------

          (a) The Borrower may, upon not more than 45 days' (but no later than
     30 days prior to the then existing Commitment Termination Date) notice
     prior to the then current Commitment Termination Date to the Administrative
     Agent (which shall notify each Lender of receipt of such request), propose
     to extend the Commitment Termination Date for an additional 364 days
     measured from the Commitment Termination Date then in effect. Each Lender
     shall endeavor to respond to such request, whether affirmatively or
     negatively (such determination to be in the individual and sole discretion
     of such Lender), by written notice to the Administrative Agent no earlier
     than 30 days prior to the then existing Commitment Termination Date (but in
     any event no later than 20 days prior to the then existing Commitment
     Termination Date). The Administrative Agent will notify the Borrower, in
     writing, of the Lenders' responses no later than 15 days prior to the then
     existing Commitment Termination Date. Subject to the execution by the
     Borrower, the Administrative Agent and such Lenders of a duly completed
     Extension Agreement in substantially the form of Exhibit E hereto, the
     Commitment Termination Date applicable to the Commitment of each Lender so
     affirmatively notifying the Borrower and the Administrative Agent (each a
     "CONSENTING LENDER") shall, effective as at the Commitment Termination Date
     (the "EXTENSION DATE"), be extended for the period specified above;
     provided that no Commitment Termination Date of any Lender shall be
     extended unless by the date 15 days prior to the Commitment Termination
     Date then in effect, Lenders having at least 50% in aggregate amount of the
     Commitments in effect at the time any such extension is requested shall
     have elected so to extend their Commitments. Any Lender which does not give
     such notice to the Borrower and the Administrative Agent by the date 15
     days prior to the Commitment Termination Date then in effect (each, a
     "NON-CONSENTING LENDER") shall be deemed to have elected not to extend as
     requested, and the Commitment of each non-extending Lender shall terminate
     on its Commitment Termination Date determined without giving effect to such
     requested extension.

                                       21

<PAGE>

          (b) If any Lender party to this Agreement shall not elect to extend
     its Commitment pursuant to subsection (a) of this Section 2.17, the
     Borrower may designate another lender or other lenders (which may be, but
     need not be, one or more of the Lenders), which at the time agree to become
     a party to this Agreement (each, an "ASSUMING LENDER").

          (c) If less than all of the Lenders consent to any such request
     pursuant to subsection (a) of this Section 2.17, the Administrative Agent
     shall promptly so notify the Consenting Lenders, and each Consenting Lender
     may, in its sole discretion, give written notice to the Administrative
     Agent not later than 10 days prior to the Commitment Termination Date then
     in effect of the amount of the Non-Consenting Lenders' Commitments for
     which it is willing to accept an assignment. If the Consenting Lenders
     notify the Administrative Agent that they are willing to accept assignments
     of Commitments in an aggregate amount that exceeds the amount of the
     Commitments of the Non-Consenting Lenders, such Commitments shall be
     allocated among the Consenting Lenders willing to accept such assignments
     in such amounts as are agreed between the Borrower and the Administrative
     Agent. If after giving effect to the assignments of Commitments described
     above there remain any Commitments of Non-Consenting Lenders, the Borrower
     may arrange for one or more Consenting Lenders or other Assignees as
     Assuming Lenders to assume, effective as of the Extension Date, any
     Non-Consenting Lender's Commitment and all of the obligations of such
     Non-Consenting Lender under this Agreement thereafter arising, without
     recourse to or warranty by, or expense to, such Non-Consenting Lender;
     provided, however, that the amount of the Commitment of any such Assuming
     Lender as a result of such substitution shall in no event be less than
     $10,000,000 unless the amount of the Commitment of such Non-Consenting
     Lender is less than $10,000,000, in which case such Assuming Lender shall
     assume all of such lesser amount; and provided further that:

               (i) any such Consenting Lender or Assuming Lender shall have paid
          to such Non-Consenting Lender (A) the aggregate principal amount of,
          and any interest accrued and unpaid to the effective date of the
          assignment on, the outstanding Loans, if any, of such Non-Consenting
          Lender plus (B) any accrued but unpaid fees owing to such
          Non-Consenting Lender as of the effective date of such assignment;

               (ii) all additional costs reimbursements, expense reimbursements
          and indemnities payable to such Non-Consenting Lender, and all other
          accrued and unpaid amounts owing to such Non-Consenting Lender
          hereunder, as of the effective date of such assignment shall have been
          paid to such Non-Consenting Lender; and

               (iii) with respect to any such Assuming Lender, the applicable
          processing and recordation fee required under Section 9.07(c) for such
          assignment shall have been paid;

     provided further that such Non-Consenting Lender's rights and obligations
     under Sections 8.03 and 9.03 shall survive such assignment as to matters
     occurring prior to the date of assignment. At least three Domestic Business
     Days prior to any Extension Date, (A) each such Assuming Lender, if any,
     shall have delivered to the Borrower and the Administrative Agent an
     Assignment and Assumption Agreement, duly executed by such Assuming Lender,
     such Non-Consenting Lender, the Borrower and the Administrative Agent, and
     (B) each Non-Consenting Lender being replaced pursuant to this Section 2.17
     shall have delivered to the Administrative Agent any Note or Notes held by
     such Non-Consenting Lender. Upon the payment or prepayment of all amounts
     referred to in clauses (i), (ii) and (iii) of the immediately preceding
     sentence, each such Consenting Lender or Assuming Lender, as of the
     Extension Date, will be substituted for such Non-Consenting Lender under
     this Agreement and shall be a Lender for all purposes of this Agreement,
     without any further acknowledgement by or the consent of the other Lenders,
     and the obligations of each such Non-Consenting Lender hereunder shall, by
     the provisions hereof, be released and discharged, except for any
     obligations which accrue prior to the date of such payment or prepayment.

                                       22

<PAGE>

     SECTION 2.18. Increased Commitments; Additional Lenders.
                   -----------------------------------------

          (a) Subsequent to the Effective Date and provided no Default has
     occurred and is continuing, the Borrower may, upon at least 30 days' notice
     to the Administrative Agent (which shall promptly provide a copy of such
     notice to the Lenders), propose to increase the aggregate amount of the
     Commitments by an amount not to exceed $60,000,000 (the amount of any such
     increase, the "INCREASED COMMITMENTS"). Each Lender party, to this
     Agreement at such time shall have the right (but not the obligation), for a
     period of 5 Domestic Business Days following receipt of such notice, to
     elect by notice to the Borrower and the Administrative Agent to increase
     its Commitment by a principal amount which bears the same ratio to the
     Increased Commitments as its then Commitment bears to the aggregate
     Commitments then existing.

          (b) If any Lender party to this Agreement shall not elect to increase
     its Commitment pursuant to subsection (a) of this Section 2.18, the
     Borrower may designate another Lender or other lenders (which may be, but
     need not be, one or more of the Lenders) which at the time agree to (i) in
     the case of any such Lender that, increase its Commitment and (ii) in the
     case of any other such lender (an "ADDITIONAL LENDER"), become a party to
     this Agreement. The sum of the increases in the Commitments of the Lenders
     pursuant to this subsection (b) plus the Commitments of the Additional
     Lenders shall not in the aggregate exceed the unsubscribed amount of the
     Increased Commitments.

          (c) An increase in the aggregate amount of the Commitments pursuant to
     this Section 2.18 shall become effective upon the receipt by the
     Administrative Agent of an agreement in form and substance satisfactory to
     the Administrative Agent signed by the Borrower, by each Additional Lender
     and by each Lender whose Commitment is to be increased, setting forth the
     new Commitments of such Lenders and setting forth the agreement of each
     Additional Lender to become a party to this Agreement and to be bound by
     all the terms and provisions hereof, together with such evidence of
     appropriate corporate authorization on the part of the Borrower with
     respect to the Increased Commitments and such opinions of counsel for the
     Borrower with respect to the Increased Commitments as the Administrative
     Agent may reasonably request.

                                  ARTICLE III

                  CONDITIONS TO EFFECTIVENESS AND BORROWINGS

     SECTION 3.01. Conditions Precedent to Effectiveness. The effectiveness of
                   -------------------------------------
this Agreement is subject to (a) the receipt by the Administrative Agent of
executed counterparts of this Agreement by the Borrower and each Lender and the
receipt by the Administrative Agent of a sufficient number of copies of each of
the following on or before the Effective Date, each, unless otherwise noted,
dated the Effective Date, and in form and substance satisfactory to the
Administrative Agent:

               (i) a copy of the Certificate of Incorporation of the Borrower,
          certified as of a recent date by the Secretary of State of the State
          of Delaware, a copy of the By-Laws of the Borrower, certified by the
          Secretary or an Assistant Secretary of the Borrower, and a good
          standing certificate for the Borrower from the Secretary of State of
          the State of Delaware; and

               (ii) (A) an opinion of Weil, Gotshal & Manges LLP, counsel for
          the Administrative Agent, substantially in the form of Exhibit B
          hereto, dated as of the Effective Date; and

                    (B) an opinion of Andrea Utecht, in-house counsel to the
               Borrower, substantially in the form of Exhibit C hereto, dated as
               of the Effective Date; and

                                       23

<PAGE>

               (iii) the Notes, if requested by the Lenders; and

               (iv) all documents (including an incumbency certificate for the
          Borrower and certification by the Secretary or Assistant Secretary of
          the Borrower of the board resolutions approving this Agreement and the
          other documents and transactions contemplated hereby) the
          Administrative Agent may reasonably request relating to the existence
          of the Borrower, the corporate authority for and the validity of this
          Agreement, and any other matter relevant hereto, all in form and
          substance satisfactory to the Administrative Agent; and

          (b) The termination of all commitments under the Existing Credit
     Agreement and the payment in full of all Debt outstanding thereunder (it
     being understood that the proceeds of the Loans hereunder may be used to
     satisfy the payment obligation under the Existing Credit Agreement
     described in this clause (b)); and

          (c) The condition precedent that, except to the extent provided below,
     the representations and warranties of the Borrower contained in Article IV
     are true and correct in all material respects on and as of the date hereof,
     except to the extent that any such representation or warranty expressly
     relates only to an earlier date, in which case it was correct as of such
     earlier date.

     SECTION 3.02. Conditions Precedent to Each Borrowing and Extension of
                   -------------------------------------------------------
Commitment. The obligation of each Lender to make a Loan on the occasion of a
- ----------
Borrowing (including the initial Borrowing) and the extension of any Lender's
Commitment pursuant to Section 2.17 shall be subject to the satisfaction of the
following conditions precedent:

          (a) in the case of a Borrowing, the Administrative Agent shall have
     received a Notice of Borrowing or Competitive Bid Notice of Borrowing, as
     the case may be, with respect thereto in accordance with Section 2.02 or
     Section 2.03, as the case may be; and

          (b) on the date of such Borrowing or on such Extension Date the
     following statements shall be true (and each of the giving of the Notice of
     Borrowing or Notice of Competitive Bid Borrowing, as applicable, and the
     acceptance by the Borrower of the proceeds of such Borrowing shall
     constitute a representation and warranty by the Borrower that on the date
     of such Borrowing or Competitive Bid Borrowing, as the case may be, such
     statements are true):

               (i) except to the extent provided below, the representations and
          warranties of the Borrower contained in Article IV are true and
          correct in all material respects on and as of the date of such
          Borrowing or Competitive Bid Borrowing, as the case may be, or on such
          Extension Date, before and after giving effect to such Borrowing or
          Competitive Bid Borrowing, as the case may be, or to the extension of
          any Lender's Commitment pursuant to Section 2.17 and to the
          application of the proceeds therefrom, as though made on and as of
          such date, except to the extent that any such representation or
          warranty expressly relates only to an earlier date, in which case it
          was correct as of such earlier date; provided that the representations
          contained in Section 4.04(c) and Section 4.05 need only be true and
          correct on the Effective Date and on each date of an extension of any
          Lender's Commitment pursuant to Section 2.17;

               (ii) no event has occurred and is continuing, or would result
          from such Borrowing or Competitive Bid Borrowing, as the case may be,
          or from the application of the proceeds therefrom, which constitutes a
          Default or Event of Default; and

                                       24

<PAGE>

               (iii) immediately after such Borrowing or Competitive Bid
          Borrowing, as the case may be, the aggregate outstanding principal
          amount of the Loans will not exceed the aggregate amount of the
          Commitments.

                                   ARTICLE IV

                         REPRESENTATIONS AND WARRANTIES

     The Borrower represents and warrants as to itself and its Subsidiaries
that:

     SECTION 4.01. Corporate, Limited Liability Company or Partnership Existence
                   -------------------------------------------------------------
and Power. The Borrower and each Material Subsidiary (i) is a corporation,
- ---------
limited liability company or partnership duly organized, validly existing and in
good standing under the laws of its jurisdiction of organization, (ii) has all
corporate, limited liability company or partnership powers and all material
governmental licenses, authorizations, consents and approvals required to carry
on its business and (iii) is duly qualified as a foreign corporation, limited
liability company or partnership and in good standing in each jurisdiction where
qualification is required by the nature of its business or the character and
location of its property, business or customers, except, as to clauses (ii) and
(iii), where the failure to so qualify or to have such licenses, authorizations,
consents and approvals, in the aggregate, would not have a Material Adverse
Effect.

     SECTION 4.02. Corporate and Governmental Authorization; No Contravention.
                   ----------------------------------------------------------
The execution, delivery and performance by the Borrower of this Agreement and
the Notes are within the Borrower's corporate power, have been duly authorized
by all necessary corporate action, require no action by or in respect of, or
filing with, any governmental body, agency or official and do not contravene, or
constitute a default under, any provision of applicable law or regulation or of
the certificate of incorporation or by-laws of the Borrower or of any agreement,
judgment, injunction, order, decree or other instrument binding upon the
Borrower or result in or require the creation or imposition of any Lien on any
asset of the Borrower or any of its Subsidiaries.

     SECTION 4.03. Binding Effect. This Agreement constitutes a legal, valid and
                   --------------
binding agreement of the Borrower and the Notes which, when executed and
delivered in accordance with this Agreement, will constitute the legal, valid
and binding obligations of the Borrower, in each case enforceable in accordance
with their respective terms.

     SECTION 4.04. Financial Information.
                   ---------------------

          (a) The consolidated balance sheet of the Borrower and its
     Consolidated Subsidiaries as of December 31, 2000, and the related
     consolidated statements of income, cash flows and changes in stockholders'
     equity for the fiscal year then ended, reported on by KPMG Peat Marwick and
     set forth in the Borrower's Annual Report on Form 10-K for the fiscal year
     ended December 31, 2000, filed with the Securities and Exchange Commission,
     a copy of which has been delivered to each of the Lenders, fairly present
     in all material respects, in conformity with generally accepted accounting
     principles consistently applied, the consolidated financial position of the
     Borrower and its Consolidated Subsidiaries as of such date and their
     consolidated results of operations, cash flows and changes in stockholders'
     equity for such fiscal year.

          (b) The consolidated unaudited balance sheet of the Borrower and its
     Consolidated Subsidiaries as of September 30, 2001, and the related
     consolidated statements of income, cash flows and changes in stockholders'
     equity for that portion of the fiscal year ending as of the close of such
     fiscal quarter, setting forth in comparative form the figures for the
     corresponding period in the prior year, set

                                       25

<PAGE>

     forth in the Borrower's Form 10-Q for the fiscal quarter ended September
     30, 2001, filed with the Securities and Exchange Commission, a copy of
     which has been delivered to each of the Lenders, fairly present in all
     material respects, in conformity with generally accepted accounting
     principles consistently applied, the consolidated financial position of the
     Borrower and its Consolidated Subsidiaries as of such date and their
     consolidated results of operations, cash flows and changes in stockholders'
     equity for such fiscal quarter.

          (c) Since December 31, 2000, there has been no change which has a
     Material Adverse Effect.

     SECTION 4.05. Litigation. There is no action, suit, proceeding or
                   ----------
arbitration pending against, or to the knowledge of the Borrower threatened
against or affecting, the Borrower or any of its Subsidiaries before any court
or arbitrator or any governmental body, agency or official in which there is a
reasonable likelihood of an adverse decision which would have a Material Adverse
Effect or which in any manner questions the validity or enforceability of this
Agreement or the Notes.

     SECTION 4.06. Compliance with ERISA. Each member of the ERISA Group has
                   ---------------------
fulfilled its obligations under the minimum funding standards of ERISA and the
Internal Revenue Code with respect to each Plan and is in compliance in all
material respects with the presently applicable provisions of ERISA and the
Internal Revenue Code with respect to each Plan. No member of the ERISA Group
has (i) sought a waiver of the minimum funding standard under Section 412 of the
Internal Revenue Code in respect of any Plan, (ii) failed to make any
contribution or payment to any Plan or Multiemployer Plan or made any amendment
to any Plan which, in either case, has resulted or could result in the
imposition of a Lien or the posting of a bond or other security under ERISA or
the Internal Revenue Code or (iii) incurred any liability under Title IV of
ERISA other than a liability to the PBGC for premiums under Section 4007 of
ERISA.

     SECTION 4.07. Environmental Matters. In the ordinary course of its
                   ---------------------
business, the Borrower conducts an ongoing review of the effect of Environmental
Laws on the business, operations and properties of the Borrower and its
Subsidiaries, in the course of which it identifies and evaluates associated
liabilities and costs (including, without limitation, any capital or operating
expenditures required for clean-up or closure of properties presently or
previously owned, any capital or operating expenditures required to achieve or
maintain compliance with environmental protection standards imposed by law or as
a condition of any license, permit or contract, any related constraints on
operating activities, including any periodic or permanent shutdown of any
facility or reduction in the level of or change in the nature of operations
conducted thereat and any actual or potential liabilities to third parties,
including employees, and any related costs and expenses). On the basis of this
review, there is no violation by the Borrower and its Subsidiaries of any
Environmental Law that is reasonably likely to result in a Material Adverse
Effect.

     SECTION 4.08. Taxes. United States Federal income tax returns of the
                   -----
Borrower and its Consolidated Subsidiaries have been examined and closed through
the fiscal year ended December 31, 1997. The Borrower and each of its
Consolidated Subsidiaries have filed all United States Federal income tax
returns and all other material tax returns that are required to be filed by them
and have paid all taxes due pursuant to such returns or pursuant to any
assessment received by any of them, except for any such taxes being diligently
contested in good faith and by appropriate proceedings. Adequate reserves have
been provided on the books of the Borrower and its Consolidated Subsidiaries in
respect of all taxes or other governmental charges in accordance with generally
accepted accounting principles, and no tax liabilities in excess of the amount
so provided are anticipated that could reasonably be expected to have a Material
Adverse Effect.

                                       26

<PAGE>

     SECTION 4.09. Full Disclosure. All information heretofore furnished by the
                   ---------------
Borrower or any of its Subsidiaries to the Administrative Agent or any Lender
for purposes of or in connection with this Agreement or any transaction
contemplated hereby was, and all such information hereafter furnished by the
Borrower or any of its Subsidiaries to the Administrative Agent or any Lender
will be, true and accurate in every material respect or based on reasonable
estimates on the date as of which such information is stated or certified.

     SECTION 4.10. Compliance with Laws. The Borrower and each Material
                   --------------------
Subsidiary are in compliance with all applicable laws, rules and regulations,
other than such laws, rules or regulations (i) the validity or applicability of
which the Borrower or such Subsidiary is contesting in good faith or (ii) the
failure to comply with which cannot reasonably be expected to have a Material
Adverse Effect.

     SECTION 4.11. Not an Investment Company. The Borrower is not an "investment
                   -------------------------
company" or a company controlled by an "investment company" within the meaning
of the Investment Company Act of 1940, as amended, or a "holding company" or a
"subsidiary company" of a "holding company" within the meaning of the Public
Utility Holding Company Act of 1935, as amended.

     SECTION 4.12. Margin Regulations. The Borrower is not engaged in the
                   ------------------
business of extending credit for the purpose of purchasing or carrying margin
stock (within the meaning of Regulation U of the Federal Reserve Board), and no
proceeds of any Borrowing will be used to purchase or carry any margin stock or
to extend credit to others for the purpose of purchasing or carrying any margin
stock in contravention of Regulation T, U or X of the Federal Reserve Board.

     SECTION 4.13. Pari Passu Obligations. This Agreement and the other Loan
                   ----------------------
Documents and the obligations evidenced hereby and thereby are and will at all
times be direct and unconditional general obligations of the Borrower, and rank
and will at all times rank in right of payment and otherwise at least pari passu
with all unsecured Debt of the Borrower, whether now existing or hereafter
outstanding, subject to statutory priority and the effect of bankruptcy and
insolvency law.

                                    ARTICLE V

                                    COVENANTS

     The Borrower agrees that, so long as any Lender has any Commitment
hereunder or any amount payable under any Note remains unpaid:

     SECTION 5.01. Information. The Borrower will deliver to each of the
                   -----------
Lenders:

          (a) within 90 days after the end of each fiscal year of the Borrower,
     a consolidated balance sheet of the Borrower and its Consolidated
     Subsidiaries as of the end of such fiscal year and the related consolidated
     statements of income, cash flows and changes in stockholders' equity for
     such fiscal year, setting forth in each case in comparative form the
     figures as of the end of and for the previous fiscal year, all in
     reasonable detail and reported on without Qualification by KPMG Peat
     Marwick or any other independent public accountants of nationally
     recognized standing acceptable to the Administrative Agent;

          (b) within 45 days after the end of each of the first three quarters
     of each fiscal year of the Borrower, a consolidated balance sheet of the
     Borrower and its Consolidated Subsidiaries as of the end of such quarter,
     and the related

                                       27

<PAGE>

     consolidated statements of income for such quarter and for the portion of
     the Borrower's fiscal year ended at the end of such quarter and the related
     consolidated statement of cash flows for the portion of the Borrower's
     fiscal year ended at the end of such quarter, setting forth in each case in
     comparative form the consolidated balance sheet as of the end of the
     previous fiscal year and the consolidated statements of income for the
     corresponding quarter and the corresponding portion of the Borrower's
     previous fiscal year, all certified (subject to normal year-end
     adjustments) as to fairness of presentation and consistency by the chief
     financial officer, the treasurer or the chief accounting officer of the
     Borrower;

          (c) simultaneously with the delivery of each set of financial
     statements referred to in paragraphs (a) and (b) of this Section 5.01, a
     certificate of the Borrower executed by the chief financial officer, the
     treasurer or the chief accounting officer of the Borrower (i) setting forth
     in reasonable detail such calculations as are required to establish whether
     the Borrower was in compliance with the requirements of Section 5.11 on the
     date of such financial statements and (ii) stating whether there exists on
     the date of such certificate any Default and, if any Default then exists,
     setting forth the details thereof and the action that the Borrower is
     taking or proposes to take with respect thereto;

          (d) simultaneously with the delivery of each set of financial
     statements referred to in paragraphs (a) and (b) of this Section 5.01, a
     schedule, certified as to its accuracy and completeness by the chief
     financial officer, the treasurer or the chief accounting officer of the
     Borrower, listing in reasonable detail the Debt balance of each Restricted
     Subsidiary where such Debt balance is in excess of $1,000,000, listing only
     Debt instruments of $1,000,000 or more; provided that no such schedule need
     be furnished if at the date of the related financial statements (i) the
     aggregate amount of Debt of domestic Restricted Subsidiaries did not exceed
     $100,000,000 and (ii) the aggregate amount of Debt of all Restricted
     Subsidiaries did not exceed $125,000,000;

          (e) within five Domestic Business Days after any Principal Officer of
     the Borrower obtains knowledge of any Default, if such Default is then
     continuing, a certificate of the Borrower executed by the chief financial
     officer, the treasurer or the chief accounting officer of the Borrower
     setting forth the details thereof and the action that the Borrower is
     taking or proposes to take with respect thereto;

          (f) promptly upon the mailing thereof to the shareholders of the
     Borrower generally, copies of all financial statements, reports and proxy
     statements so mailed;

          (g) promptly upon the filing thereof, copies of all registration
     statements (other than the exhibits thereto and any registration statements
     on Form S-8 or its equivalent), annual, quarterly or monthly reports and
     any reports on Form 8-K (or any successor form) that the Borrower or any of
     its Subsidiaries shall have filed with the Securities and Exchange
     Commission;

          (h) within 14 days after any member of the ERISA Group (i) gives or is
     required to give notice to the PBGC of any "REPORTABLE EVENT" (as defined
     in Section 4043 of ERISA) with respect to any Plan which might constitute
     grounds for a termination of such Plan under Title IV of ERISA, or knows
     that the plan administrator of any Plan has given or is required to give
     notice of any such reportable event, a copy of the notice of such
     reportable event given or required to be given to the PBGC; (ii) receives
     notice of complete or partial withdrawal liability under Title IV of ERISA
     which liability exceeds $1,000,000 or notice that any Multiemployer Plan is
     in reorganization, is insolvent or has been terminated, a copy of such
     notice; (iii) receives notice from the PBGC under Title IV of ERISA of an
     intent to terminate, impose liability (other than for premiums under
     Section 4007 of ERISA) in respect of, or appoint a trustee to administer,
     any

                                       38

<PAGE>

     Plan, a copy of such notice; (iv) applies for a waiver of the minimum
     funding standard under Section 412 of the Internal Revenue Code, a copy of
     such application; (v) gives notice of intent to terminate any Plan under
     Section 4041(c) of ERISA, a copy of such notice and other information filed
     with the PBGC; (vi) gives notice of withdrawal from any Plan pursuant to
     Section 4063 of ERISA, a copy of such notice; or (vii) fails to make any
     payment or contribution to any Plan or Multiemployer Plan or makes any
     amendment to any Plan which in either case has resulted or could result in
     the imposition of a Lien or the posting of a bond or other security, a
     certificate of the chief financial officer, the chief accounting officer or
     the treasurer of the Borrower setting forth details as to such occurrence
     and the action, if any, which the Borrower or applicable member of the
     ERISA Group is required or proposes to take;

          (i) as soon as practicable after a Principal Officer obtains knowledge
     of the commencement of an action, suit or proceeding against the Borrower
     or any Subsidiary before any court or arbitrator or any governmental body,
     agency or official in which there is a reasonable likelihood of an adverse
     decision which would have a Material Adverse Effect or which in any manner
     questions the validity or enforceability of this Agreement or any of the
     transactions contemplated hereby, information as to the nature of such
     pending or threatened action, suit or proceeding; and

          (j) from time to time such additional information regarding the
     business, properties, financial position, results of operations, or
     prospects of the Borrower or any of its Subsidiaries as the Administrative
     Agent, at the request of any Lender, may reasonably request.

     SECTION 5.02. Payment of Obligations. The Borrower will pay and discharge,
                   ----------------------
and will cause each of its Subsidiaries to pay and discharge, at or before
maturity, all of its material obligations and liabilities and all lawful taxes,
assessments and governmental charges or levies upon it or its property or
assets, except where the same may be diligently contested in good faith by
appropriate proceedings or where the failure to so pay and discharge would not
have a Material Adverse Effect, and will maintain, and will cause each of its
Subsidiaries to maintain, in accordance with United States generally accepted
accounting principles as in effect from time to time, appropriate reserves for
the accrual of any of the same.

     SECTION 5.03. Maintenance of Property; Insurance.
                   ----------------------------------

          (a) The Borrower will keep, and will cause each Restricted Subsidiary
     to keep, all material property useful and necessary in its business in good
     working order and condition, normal wear and tear excepted.

          (b) The Borrower will, and will cause each of its Material
     Subsidiaries to, maintain (either in the name of the Borrower or in such
     Subsidiary's own name) with financially sound and responsible insurance
     companies, insurance on all of its properties in at least such amounts and
     against at least such risks (and with such risk retention) as are usually
     maintained in the same general area by companies of established repute
     engaged in the same or a similar business; and will furnish to the Lenders,
     upon request from the Administrative Agent, information presented in
     reasonable detail as to the insurance so carried.

     SECTION 5.04. Inspection of Property, Books and Records. The Borrower will
                   -----------------------------------------
keep, and will cause each of its Subsidiaries to keep, proper books of record
and account in which full, true and correct entries shall be made of all
dealings and transactions in relation to its business and activities. Subject to
limitations imposed by law or contract on access to and dissemination of
classified or other confidential information, the Borrower will permit, and will
cause each of its Subsidiaries to permit,


                                       29

<PAGE>

representatives of any 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 affairs, finances and accounts with
directors, officers, employees and independent public accountants, all at such
reasonable times and as often as may reasonably be desired, upon reasonable
advance notice to the Borrower.

      SECTION 5.05. Maintenance of Existence, Rights, Etc.
                   -------------------------------------

          (a) Subject to Section 5.07, the Borrower will preserve, renew and
     keep in full force and effect, and will cause each of its Subsidiaries to
     preserve, renew and keep in full force and effect their respective
     corporate, limited liability company or partnership existence and its
     rights, privileges and franchises necessary or desirable in the normal
     conduct of business, except when failure to do so would not result in a
     Material Adverse Effect; provided that nothing in this Section 5.05 shall
     prohibit (i) the merger of a Restricted Subsidiary into the Borrower in a
     transaction permitted under Section 5.07 or the merger or consolidation of
     a Restricted Subsidiary with or into another Person if, in each case, after
     giving effect thereto, no Default shall have occurred and be continuing or
     (ii) the termination of the corporate, limited liability company or
     partnership existence of any Restricted Subsidiary if the Borrower in good
     faith determines that such termination is in the best interest of the
     Borrower and will not result in a Material Adverse Effect.

          (b) At no time will any Unrestricted Subsidiary hold, directly or
     indirectly, any capital stock of any Restricted Subsidiary.

     SECTION 5.06. Liens. The Borrower will not, and will not permit any
                   -----
Restricted Subsidiary to, create, assume or suffer to exist any Lien on any
asset now owned or hereafter acquired by it, except:

          (a) Liens existing on the date hereof securing Debt outstanding on the
     date hereof;

          (b) Liens incidental to the conduct of its business or the ownership
     of its assets which (i) arise in the ordinary course of business, (ii) do
     not secure Debt and (iii) do not in the aggregate materially detract from
     the value of its assets or materially impair the use thereof in the
     operation of its business;

          (c) Liens on property or assets of any Person existing at the time
     such Person becomes a Restricted Subsidiary;

          (d) Liens on any property or assets existing at the time of
     acquisition thereof (including acquisition through merger or consolidation)
     or to secure the payment of all or any part of the purchase price or
     construction cost thereof or to secure any Debt incurred prior to, at the
     time of or within 120 days after the later of the acquisition of such
     property or assets or shares of stock or Debt or the completion of any such
     construction and the commencement of operation of such property, for the
     purpose of financing all or any part of the purchase price or construction
     cost thereof;

          (e) Liens in favor of a governmental unit to secure payments under any
     contract or statute, or to secure any Debt incurred in financing the
     acquisition, construction or improvement of property subject thereto,
     including Liens on, and created or arising in connection with the financing
     of the acquisition, construction or improvement of, any facility used or to
     be used in the business of the Borrower or any Subsidiary through the
     issuance of obligations, the income from which shall be excludable from
     gross income by virtue of Section 103 of the Internal Revenue

                                       30

<PAGE>

     Code (or any subsequently adopted provisions thereof providing for a
     specific exclusion from gross income);

          (f) Liens on assets of Restricted Subsidiaries securing Debt owing to
     the Borrower;

          (g) any extension, renewal, substitution, or replacement (or
     successive extensions, renewals, substitutions or replacements), in whole
     or in part, of any Lien referred to in clauses (a) through (f) above or the
     Debt secured thereby; provided that (1) such extension, renewal,
     substitution or replacement Lien shall be limited to all or any part of the
     same property or assets, shares of stock or Debt that was subject to the
     Lien extended, renewed, substituted or replaced (plus improvements on such
     property) and (2) the Debt secured by such Lien at such time is not
     increased; and

          (h) other Liens securing Debt in an aggregate principal amount at any
     time outstanding not to exceed $50,000,000; provided that, notwithstanding
     the foregoing, the Borrower will not, and will not permit any Restricted
     Subsidiary to, create, assume or suffer to exist any Lien on any stock,
     Debt or other security of any Unrestricted Subsidiary now owned or
     hereafter acquired by it.

     SECTION 5.07. Consolidations, Mergers and Sales of Assets. The Borrower
                   -------------------------------------------
will not and will not permit any of its domestic Material Subsidiaries to (i)
consolidate with or merge with or into any other Person or (ii) sell, assign,
lease, transfer or otherwise dispose of all or substantially all of its assets
to any other Person; provided that (x) the Borrower may consolidate or merge
with or into another Person if (A) immediately after giving effect to such
consolidation or merger, no Default shall have occurred and be continuing, (B)
the surviving entity is a domestic corporation and (C) the Person surviving such
consolidation or merger is the Borrower and (y) any domestic Material Subsidiary
may consolidate or merge with or into the Borrower or another domestic Material
Subsidiary if (A) immediately after giving effect to such consolidation or
merger, no Default shall have occurred and be continuing, (B) the surviving
entity is a domestic corporation and (C) the Person surviving such consolidation
or merger (other than a consolidation or merger with or into the Borrower) is a
domestic Material Subsidiary.

     SECTION 5.08. Change in Nature of Business. The Borrower will not make or
                   ----------------------------
permit to be made any material change to the nature of the business of the
Borrower and its Consolidated Subsidiaries, taken as a whole, as carried on as
of the date hereof.

     SECTION 5.09. Use of Proceeds. The proceeds of the Borrowings under this
                   ---------------
Agreement will be used by the Borrower for the repayment in full of the Debt
outstanding under the Existing Credit Agreement and for general corporate
purposes. None of such proceeds will be used, directly or indirectly, in
violation of Regulation T, U or X of the Federal Reserve System.

     SECTION 5.10. Compliance with Laws. The Borrower will comply, and cause
                   --------------------
each of its Subsidiaries to comply, in all material respects with all
requirements of law (including, without limitation, ERISA, Environmental Laws
and the rules and regulations thereunder), except where failure to so comply
would not have a Material Adverse Effect.

     SECTION 5.11. Financial Covenants.
                   -------------------

          (a) The Borrower and its Consolidated Subsidiaries will maintain a
     ratio of Consolidated Debt to Consolidated EBITDA, as determined on the
     last day of each fiscal quarter, for the four fiscal quarters ending on
     such day, of not more than 3.50 to 1.0.

                                       31

<PAGE>

          (b) The Borrower and its Consolidated Subsidiaries shall maintain a
     Consolidated Interest Coverage Ratio, as determined on the last day of each
     fiscal quarter, for the four fiscal quarters ending on such day, of not
     less than 4.25 to 1.0.

          (c) The Borrower and its Consolidated Subsidiaries shall maintain a
     Consolidated Adjusted Net Worth, as determined on the last day of each
     fiscal quarter beginning on the fiscal quarter ended March 31, 2002 of not
     less than 90% of Consolidated Adjusted Net Worth as at December 31, 2001;
     provided that the amount of Consolidated Adjusted Net Worth required to be
     maintained under this Section 5.11(c) shall be increased at the end of each
     fiscal quarter beginning on the fiscal quarter ended March 31, 2002 by an
     amount equal to 50% of Adjusted Net Income (if a positive number) for such
     fiscal quarter.

     SECTION 5.12. Hedging Contracts. The Borrower will not, and will not permit
                   -----------------
any of its Subsidiaries to, enter into any Hedging Contract solely for
speculative purposes or other than for the purpose of hedging risks associated
with the businesses of the Borrower and its Subsidiaries, as done in the
ordinary course of such businesses.


                                   ARTICLE VI

                                    DEFAULTS

     SECTION 6.01. Defaults. If one or more of the following events ("EVENTS
                   --------
OF DEFAULT") shall have occurred and be continuing:

          (a) any principal of any Loan shall not be paid when due, or any
     interest, any fees or other amount payable hereunder shall not be paid
     within three Domestic Business Days of the due date thereof;

          (b) the Borrower shall fail to observe or perform any covenant
     contained in Section 5.01(e), 5.05, 5.06, 5.07, 5.09 or 5.11;

          (c) the Borrower shall fail to observe or perform any of its covenants
     or agreements contained in this Agreement (other than those covered by
     clause (a) or (b) above), for 30 days after notice thereof has been given
     to the Borrower by the Administrative Agent at the request of any Lender;

          (d) any representation, warranty, certification or statement by the
     Borrower made in this Agreement or in any certificate, financial statement
     or other document delivered pursuant hereto or deemed to be made pursuant
     to Section 3.01 shall have been incorrect in any material respect when made
     or deemed to be made;

          (e) the Borrower and/or one or more of its Subsidiaries shall fail to
     make any payment in respect of Material Financial Obligations when due
     after giving effect to any applicable grace period;

          (f) any event or condition shall occur that (i) results in the
     acceleration of the maturity of any Material Financial Obligation or (ii)
     enables the holder or holders of any Material Financial Obligation, or any
     Person acting on behalf of such holder or holders, to accelerate the
     maturity thereof; provided that no Event of Default under this clause (ii)
     shall occur unless and until any required notice has been given and/or
     period of time has elapsed with respect to any such Material Financial
     Obligation so as to perfect such right to accelerate; and provided further,

                                       32

<PAGE>

     that no Event of Default under this clause (ii) shall occur during the 45
     day period following the Effective Date if (x) the event or condition that
     shall have occurred enabling the holder or holders of any Material
     Financial Obligation, or any Person acting on behalf of such holder or
     holders, to accelerate the maturity thereof shall be a failure of the
     Borrower to comply with informational requests or reporting requirements
     under such Material Financial Obligation and (y) no notice of default shall
     have been delivered to the Borrower by such holder or holders (or Person
     acting on their behalf) in connection with such event or condition;

          (g) the Borrower or any Material Subsidiary shall commence a voluntary
     case or other proceeding seeking liquidation, reorganization or other
     relief with respect to itself or its debts under any bankruptcy, insolvency
     or other similar law now or hereafter in effect or seeking the appointment
     of a trustee, receiver, liquidator, custodian or other similar official of
     it or any substantial part of its property, or shall consent to any such
     relief or to the appointment of or taking possession by any such official
     in an involuntary case or other proceeding commenced against it, or shall
     make a general assignment for the benefit of creditors, or shall fail
     generally to pay its debts as they become due, or shall take any corporate
     action to authorize any of the foregoing;

          (h) an involuntary case or other proceeding shall be commenced against
     the Borrower or any Material Subsidiary seeking liquidation, reorganization
     or other relief with respect to it or its debts under any bankruptcy,
     insolvency or other similar law now or hereafter in effect or seeking the
     appointment of a trustee, receiver, liquidator, custodian or other similar
     official of it or any substantial part of its property, and such
     involuntary case or other proceeding shall remain undismissed and unstayed
     for a period of 60 days; or an order for relief shall be entered against
     the Borrower or any Material Subsidiary under the Federal bankruptcy laws
     as now or hereafter in effect;

          (i) any member of the ERISA Group shall fail to pay when due an amount
     or amounts aggregating in excess of $25,000,000 which it shall have become
     liable to pay under Title IV of ERISA; or notice of intent to terminate a
     Material Plan shall be filed under Title IV of ERISA by any member of the
     ERISA Group, any plan administrator or any combination of the foregoing; or
     the PBGC shall institute proceedings under Title IV of ERISA to terminate,
     to impose liability (other than for premiums under Section 4007 of ERISA)
     in respect of, or to cause a trustee to be appointed to administer, any
     Material Plan; or a condition shall exist by reason of which the PBGC would
     be entitled to obtain a decree adjudicating that any Material Plan must be
     terminated; or there shall occur a complete or partial withdrawal from, or
     a default, within the meaning of Section 4219(c)(5) of ERISA, with respect
     to, one or more Multiemployer Plans which could cause one or more members
     of the ERISA Group to incur a current payment obligation in excess of
     $25,000,000;

          (j) one or more Enforceable Judgments for the payment of money in an
     aggregate amount exceeding $25,000,000 shall be rendered against the
     Borrower or any Material Subsidiary and shall continue unsatisfied and
     unstayed for a period of 30 days; or

          (k) (i) any Person or two or more Persons acting in concert (other
     than a Plan or Plans) shall have acquired beneficial ownership (within the
     meaning of Rule 13d-3 of the Securities and Exchange Commission under the
     Securities Exchange Act of 1934, as amended) of 20% or more of the
     outstanding shares of voting stock of the Borrower; or (ii) during any
     period of 12 consecutive months, commencing before or after the date of
     this Agreement, individuals who at the beginning of such 12 month period
     were directors of the Borrower (together with any new directors whose
     election by the Borrower's board of directors or whose nomination for

                                       33

<PAGE>


     election by the Borrower's stockholders was approved by a vote of a
     majority of the directors then still in office who either were directors at
     the beginning of such period or whose election or nomination was previously
     so approved) cease for any reason to constitute a majority of the board of
     directors of the Borrower;

then, and in every such event, the Administrative Agent shall (i) if requested
by the Required Lenders, by notice to the Borrower, terminate the Commitments,
and the Commitments shall thereupon terminate, and (ii) if requested by Lenders
whose Loans represent at least 66 2/3% in aggregate principal amount of the
Loans, by notice to the Borrower, declare the Loans (together with accrued
interest thereon) and all other amounts payable by it hereunder to be, and such
Loans and amounts shall thereupon become, immediately due and payable without
presentment, demand, protest or other notice of any kind, all of which are
hereby waived by the Borrower; provided that:

               (A) in the case of any of the Events of Default specified in
          clause (g) or (h) of this Section 6.01 with respect to the Borrower,
          immediately and without any notice to the Borrower or any other act by
          the Administrative Agent or the Lenders, and

               (B) in the case of any of the Events of Default specified in
          clause (k) of this Section 6.01, unless the Required Lenders shall
          have waived such Event of Default within 30 days of its occurrence, on
          the 30th day after such occurrence,

the Commitments shall terminate and the Loans (together with accrued interest
thereon) and all other amounts payable by the Borrower hereunder shall become
immediately due and payable without presentment, demand, protest or other notice
of any kind, all of which are hereby waived by the Borrower.

     SECTION 6.02. Notice of Default. The Administrative Agent shall give notice
                   -----------------
to the Borrower under Section 6.01(c) promptly upon being requested to do so by
any Lender and shall thereupon notify all the Lenders thereof.


                                  ARTICLE VII

                            THE ADMINISTRATIVE AGENT

     SECTION 7.01. Appointment and Authorization. Each Lender irrevocably
                   -----------------------------
appoints and authorizes the Administrative Agent to take such action as agent on
its behalf and to exercise such powers under this Agreement and the Notes as are
delegated to the Administrative Agent by the terms hereof or thereof, together
with all such powers as are reasonably incidental thereto.

     SECTION 7.02. Administrative Agent and Affiliates. Citibank shall have the
                   -----------------------------------
same rights and powers under this Agreement as any other Lender and may exercise
or refrain from exercising the same as though it were not the Administrative
Agent, and Citibank and its affiliates may accept deposits from, lend money to,
and generally engage in any kind of business with, the Borrower or any
Subsidiary or affiliate of the Borrower as if it were not the Administrative
Agent hereunder.

     SECTION 7.03. Action by Agent. The obligations of the Administrative Agent
                   ---------------
hereunder are only those expressly set forth herein. Without limiting the
generality of the foregoing, the Administrative Agent shall not be required to
take any action with respect to any Default or Event of Default, except as
expressly provided in Article VI.

                                       34

<PAGE>

     SECTION 7.04. Consultation with Experts. The Administrative Agent may
                   -------------------------
consult with legal counsel (who may be counsel for the Borrower), independent
public accountants and other experts selected by it and shall not be liable for
any action taken or omitted to be taken by it in good faith in accordance with
the advice of such counsel, accountants or experts.

     SECTION 7.05. Liability of Administrative Agent. Neither the Administrative
                   ---------------------------------
Agent nor any of its directors, officers, agents or employees shall be liable to
any Lender for any action taken or not taken by it in connection herewith (i)
with the consent or at the request of the Required Lenders (or, if specifically
required by Section 9.04, all of the Lenders) or (ii) in the absence of its own
gross negligence or willful misconduct. 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 (i) any statement, warranty or
representation made in connection with this Agreement or any borrowing
hereunder; (ii) the performance or observance of any of the covenants or
agreements of the Borrower; (iii) the satisfaction of any condition specified in
Article III, except receipt of items required to be delivered to the
Administrative Agent; or (iv) the validity, effectiveness or genuineness of this
Agreement, the Notes or any other instrument or writing furnished in connection
herewith. The Administrative Agent shall not incur any liability by acting in
reliance upon any notice, consent, certificate, statement, or other writing
(which may be a bank wire, telex or similar writing) believed by it to be
genuine or to be signed by the proper party or parties.

     SECTION 7.06. Indemnification. Each Lender shall, ratably in accordance
                   ---------------
with its Commitment, indemnify the Administrative Agent (to the extent not
reimbursed by the Borrower) against any cost, expense (including counsel fees
and disbursements), claim, demand, action, loss or liability (except such as
result from the Administrative Agent's gross negligence or willful misconduct)
that the Administrative Agent may suffer or incur in connection with this
Agreement or any action taken or omitted by the Administrative Agent hereunder.

     SECTION 7.07. Credit Decision. Each Lender acknowledges that it has,
                   ---------------
independently and without reliance upon the Administrative Agent or any other
Lender, and based on such documents and information as it has deemed
appropriate, made its own credit analysis and decision to enter into this
Agreement. Each Lender also acknowledges that it will, independently and without
reliance upon the Administrative Agent or any other Lender, and based on such
documents and information as it shall deem appropriate at the time, continue to
make its own credit decisions in taking or not taking any action under this
Agreement.

     SECTION 7.08. Administrative Agent's Fees. The Borrower shall pay to the
                   ---------------------------
Administrative Agent for its own account fees in the amounts and at the times
previously agreed upon between the Borrower and the Administrative Agent.

     SECTION 7.09. Successor Administrative Agent. The Administrative Agent may
                   ------------------------------
resign at any time by giving notice thereof to the Lenders and the Borrower.
Upon any such resignation, the Required Lenders shall have the right to appoint
a successor Administrative Agent. If no successor Administrative Agent shall
have been so appointed by the Required Lenders, and shall have accepted such
appointment, within 30 days after the retiring Administrative Agent gives notice
of resignation, then the retiring Administrative Agent may, on behalf of the
Lenders, appoint a successor Administrative Agent, which shall be a commercial
bank organized or licensed under the laws of the United States of America or of
any State thereof and having a combined capital and surplus of at least
$500,000,000. Upon the acceptance of its appointment as Administrative Agent
hereunder by a successor Administrative Agent, such successor Agent shall
thereupon succeed to and become vested with all the rights and duties of the
retiring Administrative Agent, and the retiring Administrative Agent shall be
discharged from its duties and obligations hereunder. After any retiring
Administrative Agent's resignation hereunder as

                                       35

<PAGE>

Administrative Agent, the provisions of this Article VII shall inure to its
benefit as to any actions taken or omitted to be taken by it while it was
Administrative Agent.

     SECTION 7.10. Other Agents None of the Lenders identified on the facing
                   ------------
page or signature pages of this Agreement as a "syndication agent" or a
"co-documentation 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 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 VIII

                             CHANGE IN CIRCUMSTANCES

     SECTION 8.01. Basis for Determining Interest Rate Inadequate or Unfair.
                   --------------------------------------------------------
If on or prior to the first day of any Interest Period for any Euro-Dollar
Borrowing:

          (a) the Administrative Agent is advised by the Reference Banks that
     deposits in United States dollars (in the applicable amounts) are not being
     offered to the Reference Banks in the relevant market for such Interest
     Period, or

          (b) in the case of a Borrowing consisting of Euro-Dollar Loans,
     Lenders having 66-2/3% or more of the aggregate amount of the Commitments
     advise the Administrative Agent that the Euro-Dollar Rate, as determined by
     the Administrative Agent, will not adequately and fairly reflect the cost
     to such Lenders of funding their Euro-Dollar Loans for such Interest
     Period,

the Administrative Agent shall forthwith give notice thereof to the Borrower and
the Lenders, whereupon; until the Administrative Agent notifies the Borrower
that the circumstances giving rise to such suspension no longer exist, the
obligations of the Lenders to make Euro-Dollar Loans shall be suspended. Unless
the Borrower notifies the Administrative Agent at least two Euro-Dollar Business
Days before the date of any Euro-Dollar Borrowing for which a Notice of
Borrowing or a Notice of Competitive Bid Borrowing, as the case may be, has
previously been given that it elects not to borrow on such date, such Borrowing
shall instead be made as a Base Rate Borrowing.

     SECTION 8.02. Illegality. If, on or after the date of this Agreement, the
                   ----------
adoption of any applicable law, rule or regulation, or any change in any
applicable law, rule or regulation, or any change in the interpretation or
administration thereof by any governmental authority, central bank or comparable
agency charged with the interpretation or administration thereof, or compliance
by any Lender (or its Euro-Dollar Lending Office) with any request or directive
(whether or not having the force of law) of any such authority, central bank or
comparable agency, shall make it unlawful or impossible for any Lender (or its
Euro-Dollar Lending Office) to make, maintain or fund its Euro-Dollar Loans or
Competitive Bid Euro-Dollar Rate Loans, as applicable, to the Borrower and such
Lender shall so notify the Administrative Agent, the Administrative Agent shall
forthwith give notice thereof to the other Lenders and the Borrower, whereupon
until such Lender notifies the Borrower and the Administrative Agent that the
circumstances giving rise to such suspension no longer exist, the obligation of
such Lender to make Euro-Dollar Loans or Competitive Bid Euro-Dollar Rate Loans
to the Borrower shall be suspended. Before giving any notice to the
Administrative Agent pursuant to this Section 8.02, such Lender shall designate
a different Euro-Dollar Lending Office if such designation will avoid the need
for giving such notice and will not, in the judgment of such Lender, be
otherwise disadvantageous to such Lender. If such Lender shall determine that it
may not lawfully continue to maintain and fund any of its

                                       36

<PAGE>

outstanding Euro-Dollar Loans or Competitive Bid Euro-Dollar Rate Loans to the
Borrower to maturity and shall so specify in such notice, the Borrower shall
immediately prepay in full the then outstanding principal amount of each such
Euro-Dollar Loan or Competitive Bid Euro-Dollar Rate Loan, as applicable,
together with accrued interest thereon. Concurrently with prepaying each such
Euro-Dollar Loan or Competitive Bid Euro-Dollar Rate Loan, as applicable, the
Borrower shall borrow a Base Rate Loan in an equal principal amount from such
Lender (on which interest and principal shall be payable contemporaneously with
the related Euro-Dollar Loans of the other Lenders), and such Lender shall make
such a Base Rate Loan.

     SECTION 8.03. Increased Cost and Reduced Return.
                   ---------------------------------

          (a) If on or after the date hereof, the adoption of any applicable
     law, rule or regulation, or any change in any applicable law, rule or
     regulation, or any change in the interpretation or administration thereof
     by any governmental authority, central bank or comparable agency charged
     with the interpretation or administration thereof, or compliance by any
     Lender (or its Applicable Lending Office) with any request or directive
     (whether or not having the force of law) of any such authority, central
     bank or comparable agency:

               (i) shall subject any Lender (or its Applicable Lending Office)
          to any tax, duty or other charge with respect to its Euro-Dollar Loans
          or Competitive Bid Euro-Dollar Rate Loans, its Notes or its obligation
          to make Euro-Dollar Loans or Competitive Bid Euro-Dollar Rate Loans,
          or shall change the basis of taxation of payments to any Lender (or
          its Applicable Lending Office) of the principal of or interest on its
          Euro-Dollar Loans or Competitive Bid Euro-Dollar Rate Loans or any
          other amounts due under this Agreement in respect of its Euro-Dollar
          Loans or Competitive Bid Euro-Dollar Rate Loans or its obligation to
          make Euro-Dollar Loans or Competitive Bid Euro-Dollar Rate Loans
          (except for changes in the rate of tax on the overall net income of
          such Lender or its Applicable Lending Office imposed by the
          jurisdiction in which such Lender's principal executive office or
          Applicable Lending Office is located); or

               (ii) shall impose, modify or deem applicable any reserve
          (including, without limitation, any such requirement imposed by the
          Board of Governors of the Federal Reserve System, but excluding, with
          respect to any Euro-Dollar Loan or Competitive Bid Euro-Dollar Rate
          Loan, any such requirement with respect to which such Lender is
          entitled to compensation during the relevant Interest Period under
          Section 2.15), special deposit, insurance assessment or similar
          requirement against assets of, deposits with or for the account of, or
          credit extended by, any Lender (or its Applicable Lending Office) or
          shall impose on any Lender (or its Applicable Lending Office) or on
          the United States market for certificates of deposit or the London
          interbank market any other condition affecting its Euro-Dollar Loans
          or Competitive Bid Euro-Dollar Rate Loans, its Notes or its obligation
          to make Euro-Dollar Loans or Competitive Bid Euro-Dollar Rate Loans;

     and the result of any of the foregoing is to increase the cost to such
     Lender (or its Applicable Lending Office) of making or maintaining any
     Euro-Dollar Loan or Competitive Bid Euro-Dollar Rate Loans, or to reduce
     the amount of any sum received or receivable by such Lender (or its
     Applicable Lending Office) under this Agreement or under its Notes with
     respect thereto, by an amount deemed by such Lender to be material, then,
     within 15 days after demand by such Lender (with a copy to the
     Administrative Agent), the Borrower shall pay to such Lender such
     additional amount or amounts as will compensate such Lender for such
     increased cost or reduction.

          (b) If any Lender shall have determined that the adoption after the
     date hereof of any applicable law, rule or regulation regarding capital
     adequacy, or any change after the date hereof in any

                                       37

<PAGE>

     such law, rule or regulation, or any change after the date hereof in the
     interpretation or administration thereof by any governmental authority,
     central bank or comparable agency charged with the interpretation or
     administration thereof, or any request or directive after the date hereof
     regarding capital adequacy (whether or not having the force of law) of any
     such authority, central bank or comparable agency, has or would have the
     effect of reducing the rate of return on capital of such Lender (or its
     Parent) as a consequence of such Lender's obligations hereunder to a level
     below that which such Lender (or its Parent) could have achieved but for
     such adoption, change, request or directive (taking into consideration its
     policies with respect to capital adequacy) by an amount deemed by such
     Lender to be material, then from time to time, within 15 days after demand
     by such Lender (with a copy to the Administrative Agent), the Borrower
     shall pay to such Lender such additional amount or amounts as will
     compensate such Lender (or its Parent) for such reduction.

          (c) Each Lender will promptly notify the Borrower and the
     Administrative Agent of any event of which it has knowledge, occurring
     after the date hereof, which will entitle such Lender to compensation
     pursuant to this Section 8.03 and will designate a different Applicable
     Lending Office if such designation will avoid the need for, or reduce the
     amount of, such compensation and will not, in the sole judgment of such
     Lender, be otherwise disadvantageous to such Lender. The Lender shall
     deliver a written statement of such Lender as to the amount due, if any,
     under this Section 8.03. 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 Borrower in the
     absence of manifest error. Determination of amounts payable under this
     Section 8.03 in connection with a Euro-Dollar Loan or a Competitive Bid
     Euro-Dollar Rate Loan shall be calculated as though such Lender funded such
     Loan through the purchase of a deposit of the type and maturity
     corresponding to the deposit used as a reference in determining the rate of
     interest applicable to such Loan whether in fact that is the case or not.
     In determining such amount, such Lender may use any reasonable averaging
     and attribution methods.

          (d) In the event that any Lender makes a claim under this Section 8.03
     (any such Lender, an "AFFECTED LENDER"), the Borrower may substitute
     another financial institution for such Affected Lender hereunder, upon
     reasonable prior written notice (which written notice must be given within
     90 days following the occurrence of such claim) by the Borrower to the
     Administrative Agent and the Affected Lender that the Borrower intends to
     make such substitution; provided, however, that at the time of such
     substitution or replacement (i) no Default has occurred or is continuing,
     (ii) the Borrower shall have satisfied all of its obligations hereunder and
     under the Notes relating to such Lender, (iii) any such replacement or
     substitute financial institution is acceptable to the Administrative Agent
     and (iv) if such replacement or substitute financial institution is not an
     existing Lender, the Borrower shall have paid to the Administrative Agent
     an administrative fee in the amount of $3,500.

     SECTION 8.04. Base Rate Loans Substituted for Affected Euro-Dollar Loans.
                   ----------------------------------------------------------
If (i) the obligation of any Lender to make Euro-Dollar Loans has been suspended
pursuant to Section 8.02 or (ii) any Lender has demanded compensation under
Section 8.03(a) and the Borrower shall, by at least five Euro-Dollar Business
Days' prior notice to such Lender through the Administrative Agent, have elected
that the provisions of this Section 8.04 shall apply to such Lender, then,
unless and until such Lender notifies the Borrower that the circumstances giving
rise to such suspension or demand for compensation no longer apply:

          (a) all Loans which would otherwise be made by such Lender as
     Euro-Dollar Loans shall be made instead as Base Rate Loans (on which
     interest and principal shall be payable contemporaneously with the related
     Euro-Dollar Loans of the other Lenders), and

                                       38

<PAGE>

          (b) after each of its Euro-Dollar Loans has been repaid, all payments
     of principal which would otherwise be applied to repay such Euro-Dollar
     Loans shall be applied to repay its Base Rate Loans instead.

                                   ARTICLE IX

                                  MISCELLANEOUS

     SECTION 9.01. Notices. All notices, requests and other communications to
                   -------
any party hereunder shall be in writing, or by any telecommunication device
capable of creating a written record (including bank wire, telex, facsimile
transmission, email or similar writing) and shall be given to such party: (x) in
the case of the Borrower or the Administrative Agent, at its address, email
address or telex number set forth on the signature pages hereof, (y) in the case
of any Lender, at its address, email address or telex number set forth in its
Administrative Questionnaire or (z) in the case of any party, such other
address, email address or telex number as such party may hereafter specify for
the purpose by notice to the Administrative Agent and the Borrower. Each such
notice, request or other communication shall be effective (i) if given by telex,
when such telex is transmitted to the telex number specified in this Section
9.01 and the appropriate answerback is received, (ii) if given by mail, 72 hours
after such communication is deposited in the U.S. mail with first class postage
prepaid, addressed as aforesaid or (iii) if given by any other means, when
delivered at the address specified in this Section 9.01; provided that notices
to the Administrative Agent under Article II or Article VIII shall not be
effective until received.

     SECTION 9.02. No Waivers. No failure or delay by the Administrative Agent
                   ----------
or any Lender in exercising any right, power or privilege hereunder or under any
Note shall operate as a waiver thereof nor shall any single or partial exercise
thereof preclude any other or further exercise thereof or the exercise of any
other right, power or privilege. The rights and remedies herein provided or in
any Note shall be cumulative and not exclusive of any rights or remedies
provided by law.

     SECTION 9.03. Expenses; Documentary Taxes; Indemnification for Litigation.
                   -----------------------------------------------------------

          (a) The Borrower shall pay (i) all reasonable out-of-pocket expenses
     of the Administrative Agent, including fees and disbursements of special
     counsel for the Administrative Agent, in connection with the preparation
     and administration of this Agreement, any waiver or consent hereunder or
     any amendment hereof or any Default or alleged Default and (ii) if an Event
     of Default occurs, all reasonable out-of-pocket expenses incurred by the
     Administrative Agent and each Lender, including fees and disbursements of
     counsel, in connection with such Event of Default and collection,
     bankruptcy, insolvency and other enforcement proceedings resulting
     therefrom. The Borrower agrees to indemnify each Lender against any
     transfer taxes, documentary taxes, assessments or charges made by any
     governmental authority by reason of the execution and delivery of this
     Agreement or any of such Lender's Notes.

          (b) The Borrower agrees to indemnify each Lender and hold each Lender
     harmless from and against any and all liabilities, losses, damages, costs
     and expenses of any kind, including, without limitation, the reasonable
     fees and disbursements of counsel, which may be incurred by such Lender (or
     by the Administrative Agent in connection with its actions as
     Administrative Agent hereunder) in connection with any investigative,
     administrative or judicial proceeding (whether or not such Lender shall be
     designated a party thereto) relating to or arising out of this Agreement,
     any transactions contemplated hereby or any actual or proposed use of
     proceeds of Loans hereunder; provided that no Lender shall have the right
     to be indemnified hereunder for (i) its own gross negligence or willful
     misconduct as finally determined by a court of competent jurisdiction, (ii)
     any default in its Commitment to make Loans hereunder as finally determined
     by a court of competent jurisdiction or (iii) any settlement

                                       39

<PAGE>

     of any investigation, administrative or judicial proceeding entered into
     without the consent of the Borrower, which consent shall not be
     unreasonably withheld.

     SECTION 9.04. Amendments and Waivers. Any provision of this Agreement or
                   ----------------------
the Notes may be amended or waived if, but only if, such amendment or waiver is
in writing and is signed by the Borrower and the Required Lenders (and, if the
rights or duties of the Administrative Agent are affected thereby, by the
Administrative Agent); provided that no such amendment or waiver shall, unless
signed by all the Lenders, (i) except as contemplated by Section 2.18, increase
or decrease the Commitment of any Lender (except for a ratable decrease in the
Commitments of all Lenders) or subject any Lender to any additional obligation,
(ii) reduce the principal of or rate of interest on any Loan or any fees
hereunder, (iii) except in connection with Section 2.17, postpone the date fixed
for any payment of principal of or interest on any Loan or any fees hereunder or
for termination of any Commitment or (iv) change the percentage of the
Commitments or of the aggregate unpaid principal amount of the Notes, or the
number of Lenders, which shall be required for the Lenders or any of them to
take any action under this Section 9.04 or any other provision of this
Agreement; and provided further, that no waiver of any of the conditions
specified in Section 3.01 or 3.02 relating to a Competitive Bid Borrowing shall
be effective unless consented to by all Lenders making Competitive Bid Loans as
a part of such Competitive Bid Borrowing.

     SECTION 9.05. Sharing of Set-Offs. Each Lender agrees that if it shall, by
                   -------------------
exercising any right of set-off or counterclaim or otherwise, receive payment of
a proportion of the aggregate amount of principal and interest due with respect
to any Loan made by it which is greater than the proportion received by any
other Lender in respect of the aggregate amount of principal and interest due
with respect to any Loan made by such other Lender, the Lender receiving such
proportionately greater payment shall purchase such participations in the Loans
made by the other Lenders, and such other adjustments shall be made, as may be
required so that all such payments of principal and interest with respect to the
Loans made by the Lenders shall be shared by the Lenders pro rata; provided that
nothing in this Section 9.05 shall impair the right of any Lender to exercise
any right of set-off or counterclaim it may have and to apply the amount subject
to such exercise to the payment of Debt of the Borrower other than its Debt
hereunder or under the Notes. The Borrower agrees, to the fullest extent it may
effectively do so under applicable law, that any holder of a participation in a
Loan, whether or not acquired pursuant to the foregoing arrangements, may
exercise rights of set-off or counterclaim and other rights with respect to such
participation as fully as if such holder of a participation were a direct
creditor of the Borrower in the amount of such participation.

     SECTION 9.06. GOVERNING LAW; SUBMISSION TO JURISDICTION. THIS AGREEMENT AND
                   -----------------------------------------
EACH NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK. THE BORROWER HEREBY SUBMITS TO THE NONEXCLUSIVE JURISDICTION
OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK AND OF
ANY NEW YORK STATE COURT SITTING IN NEW YORK CITY FOR PURPOSES OF ALL LEGAL
PROCEEDINGS ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE NOTES OR THE
TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. THE BORROWER IRREVOCABLY WAIVES, TO
THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER
HAVE TO THE LAYING OF THE VENUE OF ANY SUCH PROCEEDING BROUGHT IN SUCH A COURT
AND ANY CLAIM THAT ANY SUCH PROCEEDING BROUGHT IN SUCH A COURT HAS BEEN BROUGHT
IN AN INCONVENIENT FORUM.

                                       40

<PAGE>

     SECTION 9.07. 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, except that the Borrower may not assign or otherwise transfer any
     of its rights or obligations under this Agreement without the consent of
     all Lenders.

          (b) Any Lender may at any time grant to one or more banks or other
     financial institutions (each a "PARTICIPANT") participating interests in
     its Commitment or any or all of its Loans. In the event of any such grant
     by a Lender of a participating interest to a Participant, whether or not
     upon notice to the Borrower and the Administrative Agent, such Lender shall
     remain responsible for the performance of its obligations hereunder, and
     the Borrower and the Administrative Agent shall continue to deal solely and
     directly with such Lender in connection with such Lender's rights and
     obligations under this Agreement. Any agreement pursuant to which any
     Lender may grant such a participating interest shall provide that such
     Lender shall retain the sole right and responsibility to enforce the
     obligations of the Borrower hereunder including, without limitation, the
     right to approve any amendment, modification or waiver of any provision of
     this Agreement; provided that such participation agreement may provide that
     such Lender will not agree to any modification, amendment or waiver of this
     Agreement described in clause (i), (ii) or (iii) of Section 9.04 without
     the consent of the Participant. The Borrower agrees that each Participant
     shall, to the extent provided in its participation agreement, be entitled
     to the benefits of Article VIII with respect to its participating interest.
     An assignment or other transfer which is not permitted by subsection (c) or
     (d) below shall be given effect for purposes of this Agreement only to the
     extent of a participating interest granted in accordance with this
     subsection (b).

          (c) Any Lender may at any time assign to one or more banks or other
     financial institutions (each an "ASSIGNEE") all, or a proportionate part
     (equivalent to an original Commitment of at least $10,000,000 or in
     increments of $1,000,000 in excess thereof) of all, of its rights and
     obligations under this Agreement and the Notes, and such Assignee shall
     assume such rights and obligations, pursuant to an Assignment and
     Assumption Agreement in substantially the form of Exhibit D hereto
     executed by such Assignee and such transferor Lender, with (and subject to)
     the consent of the Borrower (the consent of the Borrower not to be
     unreasonably withheld) and the Administrative Agent (the consent of the
     Administrative Agent not to be unreasonably withheld); provided that if an
     Assignee is an affiliate of such transferor Lender, no such consent shall
     be required and such Lender shall be permitted to assign its rights and
     obligations under this Agreement and the Notes to such affiliate upon
     notice thereof to the Borrower and the Administrative Agent. Upon execution
     and delivery of such instrument and payment by such Assignee to such
     transferor Lender of an amount equal to the purchase price as agreed
     between such transferor Lender and such Assignee, such Assignee shall be a
     Lender party to this Agreement and shall have all the rights and
     obligations of a Lender with a Commitment as set forth in such instrument
     of assumption, and the transferor Lender shall be released from its
     obligations hereunder to a corresponding extent, and no further consent or
     action by any party shall be required. Upon the consummation of any
     assignment pursuant to this subsection (c), the transferor Lender, the
     Administrative Agent and the Borrower shall make appropriate arrangements
     so that, if required, a new Note or Notes are issued to the Assignee. In
     connection with any such assignment, the transferor or transferee Lender
     shall pay to the Administrative Agent an administrative fee for processing
     such assignment in the amount of $3,500. If the Assignee is not
     incorporated or organized under the laws of the United States of America or
     a state thereof, it shall, prior to the first date on which interest or
     fees are payable hereunder for its account, deliver to the Borrower and the
     Administrative Agent certification as to exemption from deduction or
     withholding of any United States federal income taxes in accordance with
     Section 2.16.

          (d) The Borrower authorizes each Lender to disclose to any Participant
     or Assignee (each a "TRANSFEREE") and any prospective Transferee any and
     all financial information in such Lender's

                                       41

<PAGE>

     possession concerning the Borrower which has been delivered to such Lender
     by it pursuant to this Agreement or which has been delivered to such Lender
     by it in connection with such Lender's credit evaluation prior to entering
     into this Agreement, subject to Section 9.11.

          (e) Any Lender may at any time assign all or any portion of its rights
     under this Agreement and its Notes to a Federal Reserve Bank. No such
     assignment shall release the transferor Lender from its obligations
     hereunder.

          (f) No Transferee (including for the purpose of this subparagraph (f)
     a different Applicable Lending Office of a Lender) shall be entitled to
     receive any greater payment under Section 8.03 than the transferor Lender
     would have been entitled to receive with respect to the rights transferred,
     unless such transfer is made with the Borrower's prior written consent or
     by reason of the provisions of Section 8.02 or 8.03 requiring such Lender
     to designate a different Applicable Lending Office under certain
     circumstances or at a time when the circumstances giving rise to such
     greater payment did not exist.

     SECTION 9.08. Collateral. Each of the Lenders represents to the
                   ----------
Administrative Agent and each of the other Lenders that it in good faith is not
relying upon any "MARGIN STOCK" (as defined in Regulation U) as collateral in
the extension or maintenance of the credit provided for in this Agreement.

     SECTION 9.09. Counterparts; Integration. This Agreement may be signed in
                   -------------------------
any number of counterparts, each of which shall be an original, with the same
effect as if the signatures thereto and hereto were upon the same instrument.
This Agreement and the Notes constitute the entire agreement and understanding
among the parties hereto and supersede any and all prior agreements and
understandings, oral or written, relating to the subject matter hereof.

     SECTION 9.10. WAIVER OF JURY TRIAL. THE BORROWER, THE ADMINISTRATIVE AGENT
                   --------------------
AND THE LENDERS HEREBY IRREVOCABLY WAIVE ANY AND ALL RIGHTS TO TRIAL BY JURY IN
ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE NOTES OR
THE TRANSACTIONS CONTEMPLATED HEREBY.

     SECTION 9.11. Confidentiality. Each Lender agrees to hold any information
                   ---------------
which it may receive or has received from the Borrower pursuant to this
Agreement and which has been identified as confidential, in confidence, except
for disclosure (i) to legal counsel, accountants, and other professional
advisors to such Lender, to any actual or prospective Transferee and to any
affiliates of such Lender in each case subject to the receiving party's
undertaking to comply with the restrictions of this Section 9.11, (ii) required
by law, regulation, or legal process, (iii) as requested by regulatory
officials, (iv) in connection with any legal proceeding to enforce this
Agreement and (v) of information which is in the public domain at the time of
such disclosure through no fault of any of the Lenders.

                                       42

<PAGE>


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

                                    FMC CORPORATION

                                    By: /s/ Thomas C. Deas, Jr.
                                        --------------------------
                                          Name: Thomas C. Deas, Jr.

                                    1735 Market Street
                                    Philadelphia, PA 19103
                                    Attention:  Treasurer
                                    Telephone number: (215) 299-6000
                                    Telecopy number: (215) 299-6557
                                    Email address: tom_deas@fmc.com



                                    CITIBANK, N.A., as Administrative Agent
                                    and as Lender

                                    By: /s/ Carolyn A. Sheridan
                                        --------------------------
                                          Name: Carolyn A. Sheridan
                                          Title: Managing Director

                                    Two Penns Way, Suite 200
                                    New Castle, Delaware 19720
                                    Attention:
                                    Telephone number:
                                    Telecopier number:
                                    Email address:



                                    BANK OF AMERICA, N.A., as Syndication
                                    Agent and as Lender

                                    By: /s/ Wendy J. Gorman
                                        --------------------------
                                          Name: Wendy J. Gorman
                                          Title: Principal



                                    ABN AMRO BANK N.V., as Co-Documentation
                                    Agent and as Lender

                                    By: /s/ Angela Noique
                                        --------------------------
                                          Name: Angela Noique
                                          Title: Group Vice President

                                       43

<PAGE>

                                    By: /s/ Scott J. Albert
                                        --------------------------
                                          Name: Scott J. Albert
                                          Title: Group Vice President


                                    FIRST UNION NATIONAL BANK, as
                                    Co-Documentation Agent and as Lender

                                    By: /s/ John P. Lunghime
                                        --------------------------
                                          Name: John P. Lunghime
                                          Title: SVP & Director


                                    THE ROYAL BANK OF SCOTLAND, as Lender

                                    By: /s/ Jayne Seaford
                                        --------------------------
                                          Name: Jayne Seaford
                                          Title: Senior Vice President



                                    NATIONAL CITY BANK, as Lender

                                    By: /s/ Thomas J. McDonnell
                                        --------------------------
                                          Name: Thomas J. McDonnell
                                          Title: Senior Vice President



                                    THE NORTHERN TRUST COMPANY, as Lender

                                    By: /s/ Nicole D. Boehm
                                        --------------------------
                                          Name: Nicole D. Boehm
                                          Title: Second Vice President



                                    THE GOVERNOR AND COMPANY OF THE BANK
                                    OF IRELAND, as Lender

                                    By: /s/ Lisa Stewart
                                        --------------------------
                                          Name: Lisa Stewart
                                          Title: Senior Executive

                                       44

<PAGE>


                                   SCHEDULE I

                             LENDERS AND COMMITMENTS

- --------------------------------------------------------------------------------
                 LENDER                                COMMITMENT
- --------------------------------------------------------------------------------
Citibank, N.A.                                         $45,000,000
- --------------------------------------------------------------------------------
Bank of America, N.A.                                  $45,000,000
- --------------------------------------------------------------------------------
ABN AMRO Bank N.V.                                     $35,000,000
- --------------------------------------------------------------------------------
First Union National Bank                              $35,000,000
- --------------------------------------------------------------------------------
The Royal Bank of Scotland                             $25,000,000
- --------------------------------------------------------------------------------
National City Bank                                     $20,000,000
- --------------------------------------------------------------------------------
The Northern Trust Company                             $20,000,000
- --------------------------------------------------------------------------------
The Governor and Company of the Bank of Ireland        $15,000,000
- --------------------------------------------------------------------------------


          TOTAL COMMITMENT (AS OF THE EFFECTIVE DATE): $240,000,000


<PAGE>


                                SCHEDULE 1.01(A)

                          CERTAIN FOREIGN SUBSIDIARIES


FMC Quimica do Brasil Limitada

FMC Agroquimica de Mexico, S.A. de C.V.

FMC Foret, S.A.


<PAGE>


                                  SCHEDULE 1.01(B)

                              MATERIAL SUBSIDIARIES

FMC Wyoming Corporation

Electro Quimica Mexicana, S.A. de C.V.

FMC Agroquimica de Mexico S.A. de C.V.

FMC Foret, S.A.

FMC BioPolymer A/S

Minera del Altiplano, S.A.

FMC Chemicals Limited


<PAGE>


                                   EXHIBIT A-1

                                  FORM OF NOTE

U.S. $                                                        New York, New York
      -----------------
                                                               ------- ---, 200-

     FOR VALUE RECEIVED, the undersigned, FMC CORPORATION, a Delaware
corporation (the "BORROWER"), HEREBY PROMISES TO PAY to the order of
               (the "LENDER"), for the account of its Applicable Lending Office,
- --------------
the unpaid principal amount of each Loan made by the Lender to the Borrower
pursuant to the Credit Agreement referred to below on the last day of the
Interest Period relating to such Loan. The Borrower promises to pay interest on
the unpaid principal amount of each such Loan on the dates and at the rate or
rates provided for in such Credit Agreement. All such payments of principal and
interest shall be made in lawful money of the United States in Federal or other
immediately available funds at the office of Citibank, N.A., Two Penns Way,
Suite 200, New Castle, Delaware 19720.

     All Loans made by the Lender, the respective types and maturities thereof
and all repayments of the principal thereof shall be recorded by the Lender and,
if the Lender so elects in connection with any transfer or enforcement hereof,
appropriate notations to evidence the foregoing information with respect to each
such Loan then outstanding may be endorsed by the Lender on the schedule
attached hereto, or on a continuation of such schedule attached to and made a
part hereof; provided that neither the failure of the Lender to make any such
recordation or endorsement nor any error therein shall affect the obligations of
the Borrower hereunder or under the Credit Agreement.

     This note is one of the Notes referred to in the 364-Day Credit Agreement
dated as of December 6, 2001 among the Borrower, the financial institutions
party thereto and Citibank, N.A., as Administrative Agent (as the same may be
amended, supplemented or otherwise modified from time to time, the "CREDIT
AGREEMENT"). Terms defined in the Credit Agreement are used herein with the same
meanings. Reference is made to the Credit Agreement for provisions for the
prepayment hereof and the acceleration of the maturity hereof.

                                    FMC CORPORATION

                                    By:______________________________
                                       Name:
                                       Title:



<PAGE>


                         LOANS AND PAYMENTS OF PRINCIPAL



- ----------------------------------------------------------------------------
                     Amount
                       of         Amount of       Maturity     Notation
       Date           Loan     Principal Repaid     Date       Made By
- ----------------------------------------------------------------------------

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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


<PAGE>


                                       EXHIBIT A-2

                            FORM OF COMPETITIVE BID LOAN NOTE

                                                      New York, New York
U.S. $                                          Dated:                   , 200
      ------------------------                         ----------  ------     --


     FOR VALUE RECEIVED, the undersigned, FMC CORPORATION, a Delaware
corporation (the "BORROWER"), HEREBY PROMISES TO PAY to           (the "LENDER")
                                                        ---------
for the account of its Competitive Bid Lending Office (as defined in the 364-Day
Credit Agreement dated as of December 6, 2001 among the Borrower, the
financial institutions party thereto and Citibank, N.A., as Administrative Agent
(as amended, supplemented or otherwise modified from time to time, the "CREDIT
AGREEMENT"; the terms defined therein being used herein as therein defined)), on
                 , 200 , the principal amount of U.S.$                 .
- ----------------      -                                ---------------

     The Borrower promises to pay interest on the unpaid principal amount hereof
from the date hereof until such principal amount is paid in full, at the
interest rate and payable on the interest payment date or dates provided below:

          Interest Rate:             % per annum (calculated on the basis of a
                         -----------
     year of 360 days for the actual number of days elapsed).

     Both principal and interest are payable in lawful money of the United
States to Citibank, as agent, for the account of the Lender at the office of
Citibank, at 399 Park Avenue, New York, New York 10043, in same day funds.

     This Note is one of the Competitive Bid Loan Notes referred to in, and is
entitled to the benefits of, the Credit Agreement. The Credit Agreement, among
other things, contains provisions for acceleration of the maturity hereof upon
the happening of certain stated events.

     The Borrower hereby waives presentment, demand, protest and notice of any
kind. No failure to exercise, and no delay in exercising, any rights hereunder
on the part of the holder hereof shall operate as a waiver of such rights.

     This Note shall be governed by, and construed in accordance with, the laws
of the State of New York.

                                          FMC CORPORATION



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



<PAGE>


                                  Note (cont'd)
                         LOANS AND PAYMENTS OF PRINCIPAL



- ---------------------------------------------------------------------------
                                       Amount of
    Date       Amount of    Type of    Principal    Maturity    Notation
                 Loan        Loan        Repaid       Date       Made By

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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<PAGE>



                                    EXHIBIT B

                             FORM OPINION OF COUNSEL
                          FOR THE ADMINISTRATIVE AGENT


                                                               December 6, 2001

To Citibank, N.A., as Administrative Agent under
the Credit Agreement referred to below, and each of
the Lenders party to the Credit Agreement referred to below

            Re:   FMC Corporation
                  ---------------

Ladies and Gentlemen:

     We have acted as counsel to Citibank, N.A. ("CITIBANK"), in connection with
the preparation, execution and delivery of, and the consummation of the
transactions contemplated by, (i) the 364-Day Credit Agreement dated as of
December 6, 2001 (the "CREDIT AGREEMENT") among FMC Corporation, a Delaware
corporation (the "COMPANY"), the financial institutions party thereto (the
"LENDERS"), and Citibank, as Administrative Agent for the Lenders, and (ii) the
Notes, if any, issued by the Company pursuant to the Credit Agreement (the
"NOTES"), in favor of the applicable Lenders. The Credit Agreement and the Notes
are collectively referred to herein as the "FINANCE DOCUMENTS". Capitalized
terms used herein and not otherwise defined herein shall have the meanings given
them in the Credit Agreement.

     In so acting, we have examined originals or copies, certified or
otherwise identified to our satisfaction, of each of the Finance Documents and
such documents and other instruments as we have deemed relevant and necessary as
a basis for the opinions hereinafter set forth.

     In such examination, we have assumed the genuineness of all signatures, the
legal capacity of all natural persons, the authenticity of all documents
submitted to us as originals, the conformity to original documents of all
documents submitted to us as certified, conformed or photostatic copies and the
authenticity of the originals of such latter documents. We have also assumed (i)
the valid existence and good standing of each party to the Finance Documents,
(ii) that each party to the Finance Documents has the requisite power and
authority to enter into and perform each of the Finance Documents to which it is
party, (iii) the due authorization, execution and delivery of each of the
Finance Documents by each of the parties thereto, (iv) that the execution,
delivery and performance of the Finance Documents by each party thereto has been
duly authorized by all necessary action, and does not (a) contravene the
constituent documents of any such party thereto, or (b) conflict with or result
in the breach of any document or instrument binding on any such party thereto,
and (iii) the enforceability of the Finance Documents against the parties
thereto (other than the Company).

     Based on the foregoing, and subject to the qualifications stated herein, we
are of the opinion that each Finance Document constitutes the legal, valid and
binding obligation of the Company, enforceable against the Company in accordance
with its terms, subject to applicable bankruptcy, insolvency, fraudulent
conveyance, reorganization, moratorium and similar laws affecting creditors'
rights and remedies generally, and subject, as to enforceability, to general


<PAGE>

principles of equity, including principles of commercial reasonableness, good
faith and fair dealing (regardless of whether enforcement is sought in a
proceeding at law or in equity) and except that (i) rights to indemnification
thereunder may be limited by federal or state securities laws or public policy
relating thereto and (ii) no opinion is expressed with respect to any provision
of the Credit Agreement insofar as it provides that any Person purchasing a
participation from any Lender pursuant thereto may exercise set-off or similar
rights with respect to such participation or that any Lender thereunder or any
other Person may exercise set-off or similar rights other than in accordance
with law.

     The opinions expressed herein are limited to the laws of the State of New
York and the federal laws of the United States, and we express no opinion as to
the effect on the matters covered by this letter of the laws of any other
jurisdiction.

     The opinions expressed herein are rendered solely for the benefit of you
and your permitted assigns and participants in connection with the transactions
described herein. Those opinions may not be used or relied upon by any other
Person, nor may this letter or any copies thereof be furnished to a third party,
filed with a governmental agency, quoted, cited or otherwise referred to without
our prior written consent, other than to bank regulatory authorities or
permitted assigns or participants of any Lender.

                                    Very truly yours,


                                        2

<PAGE>


                                    EXHIBIT C

              FORM OF OPINION OF THE BORROWER'S IN-HOUSE COUNSEL



To Citibank, N.A., as Administrative
   Agent, and each of the Lenders party to
   the Credit Agreement referred to below

            Re:FMC Corporation
               ---------------

Ladies and Gentlemen:

     I am the ____________ of FMC Corporation, a Delaware corporation (the
"BORROWER"), in connection with the preparation, execution and delivery of, and
the consummation of the transactions contemplated by, the 364-Day Credit
Agreement dated as of December 6, 2001 (the "CREDIT AGREEMENT") among the
Borrower, the financial institutions party thereto (the "LENDERS") and Citibank,
N.A., as administrative agent for the Lenders (the "Administrative Agent").

     This opinion is rendered to you pursuant to Section 3.01(b)(ii) of the
                                                 -------------------
Credit Agreement. Capitalized terms defined in the Credit Agreement, used
herein, and not otherwise defined herein, shall have the meanings given them in
the Credit Agreement.

     In so acting, I have examined originals or copies (certified or otherwise
identified to our satisfaction) of the following documents:

          (a) the Credit Agreement; and

          (b) the Notes issued by the Borrower on the date hereof, if any.

The agreements specified in clauses (a) through (b) above are collectively
referred to as the "AGREEMENTS".

     In addition, I have examined such corporate records, agreements, documents
and other instruments, and such certificates or comparable documents of public
officials and of officers and representatives of the Borrower, and have made
such inquiries of such officers and representatives, as I have deemed relevant
and necessary as a basis for the opinions hereinafter set forth.

     In such examination, I have assumed the genuineness of all signatures, the
legal capacity of all natural persons, the authenticity of all documents
submitted to us as originals, the conformity to original documents of all
documents submitted to us as certified, conformed or photostatic copies and the
authenticity of the originals of such latter documents. As to all questions of
fact material to these opinions that have not been independently established, I
have relied upon certificates or comparable documents of officers and
representatives of the Borrower and upon the representations and warranties of
the Borrower contained in the Agreements. As to the good standing of the
Borrower, I have relied solely on the good standing certificate of the Secretary
of State of the State of Delaware.


<PAGE>


     In rendering the opinions expressed below, I have further assumed, without
any independent investigation or verification of any kind, that each of the
Agreements is the valid and binding obligation of each party thereto other than
the Borrower.

     Based on the foregoing, and subject to the qualifications stated herein, I
am of the opinion that:

          1. The Borrower is a corporation validly existing and in good standing
     under the laws of the State of Delaware and has all requisite corporate
     power and authority to own, lease and operate its properties and to carry
     on its business as now being conducted.

          2. The Borrower is duly qualified to transact business and is in good
     standing as a foreign corporation in each jurisdiction where the failure to
     be so qualified would not have a Material Adverse Effect.

          3. The Borrower has all requisite corporate power and authority to
     execute, deliver and perform the Agreements to which it is a party. The
     execution, delivery and performance by the Borrower of the Agreements to
     which it is a party have been duly authorized by all necessary corporate
     action on the part of the Borrower. The Borrower has duly executed and
     delivered the Agreements to which it is a party and such Agreements
     constitute the legal, valid and binding obligations of the Borrower,
     enforceable against the Borrower in accordance with their respective terms,
     subject to applicable bankruptcy, insolvency, fraudulent conveyance,
     reorganization, moratorium and similar laws affecting creditors' rights and
     remedies generally, and subject, as to enforceability, to general
     principles of equity, including principles of commercial reasonableness,
     good faith and fair dealing (regardless of whether enforcement is sought in
     a proceeding at law or in equity).

          4. The execution, delivery and performance by the Borrower of the
     Agreements to which it is a party will not conflict with, constitute a
     default under or violate (i) any of the terms, conditions or provisions of
     the Certificate of Incorporation or By-laws of the Borrower, (ii) any of
     the terms, conditions or provisions of any material contractual obligation
     of the Borrower of which I am aware, (iii) any Pennsylvania, Delaware
     corporate or federal requirement of law or (iv) any judgment, writ,
     injunction, decree, order or ruling of any court or governmental authority
     of which I am aware binding on the Borrower.

          5. No consent, approval, waiver, license or authorization or other
     action by or filing with any Pennsylvania, Delaware corporate or federal
     governmental authority is required in connection with the execution,
     delivery or performance by the Borrower of the Agreements to which it is a
     party.

          6. The Borrowings by and other financial accommodations provided to
     the Borrower under the Agreements and the application of proceeds thereof
     as provided in the Credit Agreement will not violate Regulation T, U or X
     of the Federal Reserve Board.

          7. The Borrower is not an "investment company" within the meaning of
     the Investment Company Act of 1940, as amended, or a "holding company" or a
     "subsidiary company" of a "holding company" within the meaning of the
     Public Utility Holding Company Act of 1935, as amended.

                                        2

<PAGE>
          8. To my knowledge, there is no action, suit, proceeding, governmental
     investigation or arbitration, at law or in equity or before any
     governmental authority, pending or overtly threatened against the Borrower
     (i) with respect to any Agreement or challenging any of the Lenders' or the
     Administrative Agent's rights or remedies thereunder or (ii) which, if
     adversely determined, could materially adversely affect the ability of the
     Borrower to perform its obligations under the Agreements.

     I am admitted to the bar of the Commonwealth of Pennsylvania. I express no
opinion as to the laws of any jurisdiction other than (A) the laws of the
Commonwealth of

Pennsylvania, (B) the Delaware General Corporate Law and (C) the Federal laws of
the United States of America.

     As used herein, "to my knowledge" means the conscious awareness of facts or
other information by any officer, attorney or other employee of the Borrower
actively involved in the transactions contemplated by the Credit Agreement.

     The opinions expressed herein are rendered solely for your benefit in
connection with the transactions described herein. This opinion may not be used
or relied upon by any other person, nor may this letter or any copies thereof be
furnished to a third party, filed with a governmental agency, quoted, cited or
otherwise referred to without my prior written consent, other than to bank
regulatory authorities or permitted assigns of any Lender, and except as
required by any governmental authority or pursuant to legal process.

                                    Very truly yours,


                                        3

<PAGE>


                                    EXHIBIT D


                 FORM OF ASSIGNMENT AND ASSUMPTION AGREEMENT


     AGREEMENT dated as of          , 20     among [ASSIGNOR] (the "ASSIGNOR"),
                          ----------    ----
[ASSIGNEE] (the "ASSIGNEE"), FMC CORPORATION (the "BORROWER") and CITIBANK,
N.A., as administrative agent under the Credit Agreement referred to below (the
"ADMINISTRATIVE AGENT").

                             W I T N E S S E T H


     WHEREAS, this Assignment and Assumption Agreement (the "AGREEMENT") relates
to the 364-Day Credit Agreement dated as of December 6, 2001 among the
Borrower, the Assignor and the other financial institutions party thereto from
time to time, and the Administrative Agent (as amended, supplemented or
otherwise modified, the "CREDIT AGREEMENT");

     WHEREAS, as provided under the Credit Agreement, the Assignor has a
Commitment to make Loans in an aggregate principal amount at any time
outstanding not to exceed $300,000,000;

     WHEREAS, Loans made by the Assignor under the Credit Agreement in the
aggregate principal amount of $            are outstanding at the date hereof;
                               -----------
and

     WHEREAS, the Assignor proposes to assign to the Assignee all of the rights
and obligations of the Assignor under the Credit Agreement in respect of the
portion of its Commitment (other than in respect of Competitive Bid Loans and
Competitive Bid Loan Notes) thereunder in an amount equal to $            (the
                                                              -----------
"ASSIGNED AMOUNT"), together with a corresponding portion of its outstanding
Loans that are not Competitive Bid Loans (if any) and the Assignee proposes to
accept assignment of such rights and assume the corresponding obligations from
the Assignor on such terms;

     NOW, THEREFORE, in consideration of the foregoing and the mutual agreements
contained herein, the parties hereto agree as follows:

     SECTION 1. Definitions. All capitalized terms not otherwise defined
                -----------
herein shall have the respective meanings set forth in the Credit
Agreement.

     SECTION 2. Assignment. The Assignor hereby assigns and sells to the
                ----------
Assignee all of the rights and obligations of the Assignor under the Credit
Agreement to the extent they relate to the Assigned Amount (other than in
respect of Competitive Bid Loans and Competitive Bid Loan Notes), and the
Assignee hereby accepts such assignment from the Assignor and assumes all of the
obligations of the Assignor under the Credit Agreement to the extent they relate
to the Assigned Amount (other than in respect of Competitive Bid Loans and
Competitive Bid Loan Notes), including the purchase from the Assignor of the
corresponding portion of the principal amount of the Loans that are not
Competitive Bid Loans (if any) made by the Assignor outstanding at the date
hereof. Upon the execution and delivery hereof by the Assignor, the Assignee,
the Borrower and the Administrative Agent and the payment of the amounts
specified in Section 3 hereof required to be paid on the date hereof (a) the
Assignee shall, as of the date hereof, succeed to the rights and be obligated to
perform the obligations of a Lender under the Credit Agreement with a Commitment
in an amount equal to the Assigned Amount, and (b) the Commitment of the
Assignor shall, as of the date hereof, be reduced by a like amount and the
Assignor


<PAGE>

shall be released from its obligations under the Credit Agreement to the extent
such obligations have been assumed by the Assignee. The assignment provided for
herein shall be without recourse to the Assignor.

     SECTION 3. Payments. As consideration for the assignment and sale
               ---------
contemplated in Section 2 hereof, the Assignee shall pay to the Assignor on the
date hereof in Federal funds an amount equal to $           * . It is understood
                                                 -----------
that facility fees accrued to the date hereof are for the account of the
Assignor and such fees accruing from and including the date hereof with respect
to the Assigned Amount are for the account of the Assignee. Each of the Assignor
and the Assignee hereby agrees that if it receives any amount under the Credit
Agreement which is for the account of the other, it shall receive the same for
the account of such other party to the extent of such other party's interest
therein and shall promptly pay the same to such other party.

     SECTION 4. Consent of the Borrower and the Administrative Agent. This
                ----------------------------------------------------
Agreement is conditioned upon the consent of the Borrower and the Administrative
Agent required by Section 9.07(c) of the Credit Agreement. The execution of this
Agreement by the Borrower and the Administrative Agent is evidence of such
consent. Pursuant to said Section 9.07(c), the Borrower agrees to execute and
deliver a Note, if requested by the Assignee, payable to the order of the
Assignee to evidence the assignment and assumption provided for herein.

     SECTION 5. Non-Reliance on Assignor. The Assignor makes no representation
                ------------------------
or warranty in connection with, and shall have no responsibility with respect
to, the solvency, financial condition, or statements of the Borrower, or the
validity and enforceability of the obligations of the Borrower in respect of the
Credit Agreement or any Note. The Assignee acknowledges that it has,
independently and without reliance on the Assignor, and based on such documents
and information as it has deemed appropriate, made its own credit analysis and
decision to enter into this Agreement and will continue to be responsible for
making its own independent appraisal of the business, affairs and financial
condition of the Borrower.

     SECTION 6. Governing Law. This Agreement shall be governed by and construed
                -------------
in accordance with the laws of the State of New York.

     SECTION 7. Counterparts. This Agreement may be signed in any number of
                ------------
counterparts, each of which shall be an original, with the same effect as if the
signatures thereto and hereto were upon the same instrument.


- -----------
*Amount should combine principal together with accrued interest and
breakage compensation, if any, to be paid by the Assignee, net of any portion of
any upfront fee to be paid by the Assignor to the Assignee. It may be preferable
in an appropriate case to specify these amounts generically or by formula rather
than as a fixed sum.

                                        2

<PAGE>


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

                                   [ASSIGNOR]


                                    By:_________________________
                                       Name:
                                       Title:


                                   [ASSIGNEE]

                                    By:_________________________
                                       Name:
                                       Title:


                                    FMC CORPORATION

                                    By:_________________________
                                       Name:
                                       Title:


                                    CITIBANK, N.A., as Administrative Agent

                                    By:_________________________
                                       Name:
                                       Title:

                                      3

<PAGE>


                                    EXHIBIT E

                           FORM OF EXTENSION AGREEMENT

Citibank, N.A., as Administrative Agent
Two Penns Way, Suite 200
New Castle, Delaware, 19720

Attention:
           -----------

Ladies and Gentlemen:

     The undersigned hereby agrees to extend, effective               , 200  its
                                                       ---------------     -
Commitment and Commitment Termination Date under the 364-Day Credit Agreement
dated as of December 6, 2001 among FMC Corporation, the financial institutions
parties thereto (the "Lenders") and Citibank, N.A., as Administrative Agent for
the Lenders (as amended, supplemented or otherwise modified from time to time,
the "364-Day Credit Agreement") for 364 days to [date to which the Commitment
Termination Date is extended] pursuant to Section 2.17 of the 364-Day Credit
Agreement. Terms defined in the 364-Day Credit Agreement are used herein as
therein defined.

     This Extension Agreement shall be governed by and construed in accordance
with the laws of the State of New York. This Extension Agreement may be signed
in any number of counterparts, each of which shall be an original, with the same
effect as if the signatures thereto and hereto were upon the same instrument.

                                    [NAME OF LENDER]


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


Agreed and Accepted:

FMC CORPORATION


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


CITIBANK, N.A., as Administrative Agent


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


<PAGE>

                                                                  CONFORMED COPY

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



                            364-DAY CREDIT AGREEMENT

                                   DATED AS OF

                                DECEMBER 6, 2001

                                      AMONG

                                FMC CORPORATION,

                            THE LENDERS PARTY HERETO

                                       AND

                                 CITIBANK, N.A.,
                             AS ADMINISTRATIVE AGENT

                                       AND

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

                                       AND

                               ABN AMRO BANK N.V.
                                       AND
                           FIRST UNION NATIONAL BANK,
                           AS CO-DOCUMENTATION AGENTS


                            SALOMON SMITH BARNEY INC.
                                       AND
                         BANC OF AMERICA SECURITIES LLC,
                              AS CO-LEAD ARRANGERS



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

                           WEIL, GOTSHAL & MANGES LLP
                                767 FIFTH AVENUE
                          NEW YORK, NEW YORK 10153-0119


<PAGE>



                                TABLE OF CONTENTS

                                                                            PAGE



Article I      DEFINITION                                                      1

               SECTION 1.01       Definitions                                  1

               SECTION 1.02       Accounting Terms and Determinations         11

               SECTION 1.03       Types of Borrowings                         11

               SECTION 1.04       Pricing Levels                              11

Article II     THE CREDITS                                                    12

               SECTION 2.01       Commitments to Lend                         12

               SECTION 2.02       Notice of Borrowings                        12

               SECTION 2.03       Competitive Bid Loans                       13

               SECTION 2.04       Notice to Lenders; Funding of Loans         16

               SECTION 2.05       Notes                                       17

               SECTION 2.06       Maturity of Loans                           17

               SECTION 2.07       Interest Rates                              17

               SECTION 2.08       Fees                                        18

               SECTION 2.09       Mandatory Termination of Commitments        19

               SECTION 2.10       Optional Reduction of Commitments           19

               SECTION 2.11       Optional Prepayments                        19

               SECTION 2.12       Payments                                    19

               SECTION 2.13       Funding Losses                              20

               SECTION 2.14       Computation of Interest and Fees            20

               SECTION 2.15       Regulation D Compensation                   20

               SECTION 2.16       Withholding Tax Exemption                   21

               SECTION 2.17       Extension of Commitments                    21

               SECTION 2.18       Increased Commitments; Additional Lenders   23

Article III    CONDITIONS TO EFFECTIVENESS AND BORROWINGS                     23

               SECTION 3.01       Conditions Precedent to Effectiveness       23

               SECTION 3.02       Conditions Precedent to Each Borrowing and
                                     Extension of Commitment                  24

Article IV     REPRESENTATIONS AND WARRANTIES                                 25

               SECTION 4.01       Corporate, Limited Liability Company or
                                     Partnership Existence and Power          25

               SECTION 4.02       Corporate and Governmental Authorization;
                                     No Contravention                         25

               SECTION 4.03       Binding Effect                              25

               SECTION 4.04       Financial Information                       25


                                       i

<PAGE>
                               TABLE OF CONTENTS
                                  (CONTINUED)

               SECTION 4.05       Litigation                                  26

               SECTION 4.06       Compliance with ERISA                       26

               SECTION 4.07       Environmental Matters                       26

               SECTION 4.08       Taxes                                       26

               SECTION 4.09       Full Disclosure                             27

               SECTION 4.10       Compliance with Laws                        27

               SECTION 4.11       Not an Investment Company                   27

               SECTION 4.12       Margin Regulations                          27

               SECTION 4.13       Pari Passu Obligations                      27

               SECTION 4.14       Material Subsidiaries                       27

Article V      COVENANTS                                                      27

               SECTION 5.01       Information                                 27

               SECTION 5.02       Payment of Obligations                      29

               SECTION 5.03       Maintenance of Property; Insurance          29

               SECTION 5.04       Inspection of Property, Books and Records   30

               SECTION 5.05       Maintenance of Existence, Rights, Etc.      30

               SECTION 5.06       Liens                                       30

               SECTION 5.07       Consolidations, Mergers and Sales of Assets 31

               SECTION 5.08       Change in Nature of Business                31

               SECTION 5.09       Use of Proceeds                             31

               SECTION 5.10       Compliance with Laws                        31

               SECTION 5.11       Financial Covenants                         32

               SECTION 5.12       Hedging Contracts                           32

Article VI     DEFAULTS                                                       32

               SECTION 6.01       Defaults                                    32

               SECTION 6.02       Notice of Default                           34

Article VII    THE ADMINISTRATIVE AGENT                                       34

               SECTION 7.01       Appointment and Authorization               34

               SECTION 7.02       Administrative Agent and Affiliates         35

               SECTION 7.03       Action by Agent                             35

               SECTION 7.04       Consultation with Experts                   35

               SECTION 7.05       Liability of Administrative Agent           35

                                       ii

<PAGE>

                               TABLE OF CONTENTS
                                  (CONTINUED)

               SECTION 7.06       Indemnification                             35

               SECTION 7.07       Credit Decision                             35

               SECTION 7.08       Administrative Agent's Fees                 35

               SECTION 7.09       Successor Administrative Agent              36

               SECTION 7.10       Other Agents                                36

Article VIII   CHANGE IN CIRCUMSTANCES                                        36

               SECTION 8.01.      Basis for Determining Interest Rate
                                     Inadequate or Unfair                     36

               SECTION 8.02       Illegality                                  36

               SECTION 8.03       Increased Cost and Reduced Return           37

               SECTION 8.04       Base Rate Loans Substituted for Affected
                                     Euro-Dollar Loans                        39

Article IX     MISCELLANEOUS                                                  39

               SECTION 9.01       Notices                                     39

               SECTION 9.02       No Waivers                                  39

               SECTION 9.03       Expenses; Documentary Taxes;
                                     Indemnification for Litigation           39

              SECTION 9.04        Amendments and Waivers                      40

              SECTION 9.05        Sharing of Set-Offs                         40

              SECTION 9.06        GOVERNING LAW; SUBMISSION TO JURISDICTION   40

              SECTION 9.07        Successors and Assigns                      41

              SECTION 9.08        Collateral                                  42

              SECTION 9.09        Counterparts; Integration                   42

              SECTION 9.10        WAIVER OF JURY TRIAL                        42

              SECTION 9.11        Confidentiality                             42

                                      iii

<PAGE>

                                TABLE OF CONTENTS
                                   (CONTINUED)


                                    SCHEDULES

Schedule I       Lenders and Commitments

Schedule 1.01(a) Certain Foreign Subsidiaries

Schedule 1.01(b) Material Subsidiaries

                                    EXHIBITS

Exhibit A-1.Form of Note

Exhibit A-2.Form of Competitive Bid Loan Note

Exhibit B  Form of Opinion of Weil, Gotshal & Manges LLP, counsel for the
           Administrative Agent

Exhibit C  Form of Opinion of In-House Counsel of the Borrower

Exhibit D  Form of Assignment and Assumption Agreement

Exhibit E  Form of Extension Agreement

                                       iv

<PAGE>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>5
<FILENAME>fmc-ex99_52724.txt
<DESCRIPTION>EXHIBIT 99.1 -- TAX-FREE DIVIDEND
<TEXT>
EXHIBIT 99.1





FMC CORPORATION BOARD OF DIRECTORS DECLARES TAX-FREE DIVIDEND OF FMC
TECHNOLOGIES' SHARES




PHILADELPHIA AND CHICAGO, NOVEMBER 29, 2001 -- FMC Corporation today announced
that its Board of Directors has declared a special stock dividend of all of FMC
Corporation's shares of FMC Technologies, Inc. The dividend will be distributed
at 5:00 p.m. Central Time on December 31, 2001, to FMC Corporation shareholders
of record as of 5:00 p.m. Central Time on December 12, 2001, which is the record
date. FMC Corporation currently owns 53.95 million shares, or approximately 83
percent of FMC Technologies. The other 17 percent of the outstanding FMC
Technologies' shares were sold in an initial public offering in June 2001.

FMC Corporation also announced that the Internal Revenue Service has ruled that
the planned distribution of FMC Technologies' shares qualifies as tax-free for
FMC Corporation shareholders.

According to FMC Corporation President and Chief Executive Officer William G.
Walter: "This distribution is the final step in the reorganization begun in
October 2000 to split FMC Corporation into two independent, publicly-traded
companies -- a machinery company and a chemical company. Both companies will
continue the FMC tradition of providing quality products, innovative solutions
and outstanding service to their customers. The distribution will enable the
companies to strengthen their own identities and realize the full growth
potential in their respective markets, while allowing shareholders to realize
the value inherent in both."

FMC Corporation had said that it expects FMC Corporation shareholders to receive
approximately 1.7 shares of FMC Technologies for each FMC Corporation share,
based on approximately 31,000,000 FMC Corporation shares currently outstanding.
The final distribution ratio will be determined based on the number of FMC
Corporation shares outstanding on the record date.

FMC Corporation shareholders will receive whole shares of FMC Technologies and
cash payments for fractional shares. Cash received in lieu of fractional shares
will be taxable. The distribution remains subject to the conditions set forth in
the Separation and Distribution Agreement previously entered into between FMC
Corporation and FMC Technologies.

FMC Corporation will mail an information statement to its stockholders promptly
after the record date. The information statement will include the final
distribution ratio and information regarding how to calculate share tax basis.
FMC Corporation shareholders are encouraged to read this information statement
carefully.

<PAGE>

FMC Corporation is a global, diversified chemical company serving agricultural,
industrial and consumer markets for more than a century with innovative
solutions, applications and products. The company employs over 6,000 people
throughout the world. FMC Corporation divides its businesses into three
segments: Agricultural Products, Specialty Chemicals and Industrial Chemicals.

FMC Technologies, Inc. is a global leader providing mission-critical technology
solutions for the energy, food processing and air transportation industries. The
company designs, manufactures and services technologically sophisticated systems
and products for its customers through the FMC Energy Systems (comprising Energy
Production and Energy Processing), FMC FoodTech and FMC Airport Systems
businesses. FMC Technologies employs approximately 9,000 people at 31
manufacturing facilities in 14 countries.

Safe Harbor Statement under the Private Securities Act of 1995: Statements in
this news release that are forward-looking statements are subject to various
risks and uncertainties concerning specific factors described in FMC
Corporation's 2000 Form 10-K and other SEC filings. Such information contained
herein represents management's best judgment as of the date hereof based on
information currently available. FMC Corporation does not intend to update this
information and disclaims any legal obligation to the contrary. Historical
information is not necessarily indicative of future performance.


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


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>6
<FILENAME>fmcex99-2_52724.txt
<DESCRIPTION>EXHIBIT 99.2 - INFORMATION STATEMENT
<TEXT>
EXHIBIT 99.2

                             INFORMATION STATEMENT

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

                      Spin-off of FMC Technologies, Inc.
                          Through the Distribution by
                    FMC Corporation of 53,950,000 Shares of
                    FMC Technologies, Inc. Common Stock to
                         FMC Corporation Stockholders

     We are sending you this Information Statement because we are spinning off
our FMC Technologies, Inc. subsidiary to the holders of our common stock. We are
effecting this spin-off by distributing 1.71972131 shares of FMC Technologies,
Inc. common stock as a dividend on each outstanding share of FMC Corporation
common stock, amounting to 53,950,000 shares of FMC Technologies, Inc. common
stock in total. The dividend will be payable on December 31, 2001 to holders of
record of shares of FMC Corporation common stock as of 5:00 p.m. Central time,
on December 12, 2001. As described below, if you sell shares of FMC Corporation
common stock in the "regular way" market between December 12, 2001 and 5:00 p.m.
Central time, on December 31, 2001, you will be selling your right to receive
the FMC Technologies, Inc. share dividend.

     FMC Technologies, Inc. designs, manufactures and services technologically
sophisticated systems and products for its customers through its Energy
Production Systems, Energy Processing Systems, FoodTech and Airport Systems
segments. Last year, the FMC Corporation board of directors determined that it
would be in the best interests of FMC Corporation and its stockholders to
separate the company into two independent companies consisting of FMC
Corporation and FMC Technologies, Inc. In June 2001, FMC Technologies, Inc.
completed an initial public offering of 11,050,000 shares of its common stock.
Following this spin-off, we will no longer own any shares of FMC Technologies,
Inc., and FMC Technologies, Inc. will be a fully independent, publicly traded
company. No vote of FMC Corporation stockholders is required in connection with
the FMC Technologies, Inc. spin-off. Therefore, you are not required to take any
action. We are sending you this Information Statement, which contains additional
information about the terms of the spin-off, FMC Technologies, Inc. and FMC
Technologies, Inc. common stock, for your information only. If you would like
more information, please call Eric Norris at 215-299-6538 or check our website
at http://www.fmc.com.

     Neither the Securities and Exchange Commission nor any state securities
regulators have approved the FMC Technologies, Inc. common stock to be issued to
you pursuant to this spin-off or determined if this Information Statement is
accurate or adequate. Any representation to the contrary is a criminal offense.

         The date of this Information Statement is December 14, 2001.


             INFORMATION ABOUT THE FMC TECHNOLOGIES, INC. SPIN-OFF

The Spin-off

     On November 29, 2001, the FMC Corporation board of directors approved the
spin-off of FMC Technologies, Inc. to holders of FMC Corporation's common stock.
To effect this spin-off, the FMC Corporation board declared a dividend


<PAGE>


on FMC Corporation common stock consisting of all of the 53,950,000 shares of
FMC Technologies, Inc. common stock owned by FMC Corporation. These shares
represent approximately 83.0% of the outstanding FMC Technologies, Inc. common
stock. The dividend will be paid at 5:00 p.m. Central time, on December 31,
2001, in the amount of 1.71972131 shares of FMC Technologies, Inc. common stock
for each share outstanding of FMC Corporation common stock as described below.

     Please note that you will not be required to pay any cash or other
consideration for the shares of FMC Technologies, Inc. common stock distributed
to you or to surrender or exchange your shares of FMC Corporation common stock
to receive the dividend of FMC Technologies, Inc. common stock.

The Number of Shares You Will Receive

     For each share of FMC Corporation common stock that you owned at 5:00 p.m.
Central time, on December 12, 2001, the record date, you will receive that
number of shares equal to the quotient obtained by dividing the total number of
shares of FMC Technologies, Inc. common stock to be distributed in the spin-off
by the total number of shares of FMC Corporation common stock outstanding at
5:00 p.m. Central time, on the record date. This calculation results in the
distribution of 1.71972131 shares of FMC Technologies, Inc. common stock for
each share of FMC Corporation common stock, and is illustrated as follows:

Total number of shares of FMC Technologies, Inc.
       to be distributed in the spin-off             53,950,000
- ------------------------------------------------     ----------     = 1.71972131
   Total number of shares of FMC Corporation         31,371,362
   common stock outstanding as of 5:00 p.m.,
       Central time, on the record date

     It is important to note that if you sell your shares of FMC Corporation
common stock between the record date and the distribution date in the "regular
way" market, you will be selling your right to receive the FMC Technologies,
Inc. share dividend. Please see "Trading Between the Record Date and
Distribution Date" below.

Trading Between the Record Date and Distribution Date

     Between the record date and the distribution date, there will be two
markets in FMC Corporation common stock: a "regular way" market and an
"ex-dividend" market. Shares that trade on the regular way market will trade
with an entitlement to shares of FMC Technologies, Inc. common stock distributed
pursuant to the spin-off. Shares that trade on the ex-dividend market will trade
without an entitlement to shares of FMC Technologies, Inc. common stock
distributed pursuant to the spin-off. Therefore, if you owned shares of FMC
Corporation common stock at 5:00 p.m. Central time on the record date, and sell
those shares on the regular way market prior to 5:00 p.m. Central time, on
December 31, 2001, the distribution date, you will also be trading the shares of
FMC Technologies, Inc. common stock that would have been distributed to you
pursuant to the spin-off. If you sell those shares of FMC Corporation common
stock on the ex-dividend market prior to 5:00 p.m. Central time, on the
distribution date, you will still receive the shares of FMC Technologies, Inc.
common stock that were to be distributed to you pursuant to your ownership of
the shares of FMC Corporation common stock.

     Furthermore, between the record date and distribution date there will be
two markets in FMC Technologies, Inc. common stock, a "regular way" market and a
"when-issued trading" market. The regular way market will be the same market for
shares of FMC Technologies, Inc. common stock that currently exists. The
when-issued

                                        2

<PAGE>


trading market will be a market for shares of FMC Technologies, Inc. common
stock that will be distributed to FMC Corporation stockholders on the
distribution date. If you owned shares of FMC Corporation common stock at 5:00
p.m. Central time on the record date, then you are entitled to shares of FMC
Technologies, Inc. common stock distributed pursuant to the spin-off. You may
trade this entitlement to shares of FMC Technologies, Inc. common stock, without
the shares of FMC Corporation common stock you own, on the when-issued trading
market.

When and How You Will Receive the Dividend

     We will pay the dividend on December 31, 2001 by releasing our shares of
FMC Technologies, Inc. common stock to be distributed in the spin-off to
Computershare Investor Services LLC, our transfer agent. As of 5:00 p.m.,
Central time, on December 31, 2001 the transfer agent will cause the shares of
FMC Technologies, Inc. common stock to which you are entitled to be registered
in your name or in the "street name" of your brokerage firm. Many FMC
Corporation stockholders have their FMC Corporation shares held in an account
with a stock brokerage firm. In such cases, the brokerage firm is the registered
holder or "street name" and the shares of FMC Technologies, Inc. common stock
will be credited to the account of your brokerage firm. Your broker will in turn
electronically credit your account for the FMC Technologies, Inc. shares you are
entitled to receive. This will take 3 to 8 business days after December 31,
2001. If you have any questions in this regard, we encourage you to contact your
broker on the mechanics of having the FMC Technologies, Inc. shares posted to
your account.

     If you physically hold the FMC Corporation stock certificates and are the
registered holder, the shares of FMC Technologies, Inc. common stock distributed
to you will be registered in your name and you will become the record holder of
that number of shares of FMC Technologies, Inc. common stock. FMC Technologies,
Inc. common stock will be issued in book-entry form through the Direct
Registration System. FMC Technologies, Inc.'s transfer agent and registrar,
Computershare Investor Services LLC, will hold your book-entry shares. If you
wish to receive a physical certificate after the distribution date, you should
contact FMC Technologies, Inc.'s transfer agent (see page 8 for telephone
numbers and address).

     The transfer agent will not deliver any fractional shares of FMC
Technologies, Inc. common stock in connection with the spin-off. Instead, the
transfer agent will aggregate all fractional shares and sell them on behalf of
those holders who otherwise would be entitled to receive a fractional share.
Such holders will then receive a cash payment in an amount equal to their pro
rata share of the total net proceeds of that sale. Such cash payment will be
made to the holders in the same account in which the underlying shares are held.
Following the distribution date, a direct registration transaction advice will
be sent to you showing your ownership interest in FMC Technologies, Inc. common
stock. If you physically hold FMC Corporation stock certificates and are the
registered holder, you will receive a check, in a subsequent mailing,
representing your pro rata share of the net proceeds from the sale of the
fractional shares. We currently estimate that it will take up to 14 days from
the distribution date to complete the mailings of direct registration
transaction advices and checks for any fractional shares.

U.S. Federal Income Tax Consequences

     The following is a summary of the material anticipated U.S. federal income
tax consequences of the spin-off to FMC Corporation stockholders who hold FMC
Corporation common stock as a capital asset. The summary is based on the
Internal Revenue Code, Treasury regulations issued under the Internal Revenue
Code, and administrative rulings and court decisions in effect as of the date of
this information statement, all of which are subject to change at any time,
possibly with retroactive effect. This summary is not a complete description of
all of the tax consequences of the transaction and, in particular, may not
address U.S. federal income tax considerations applicable to FMC Corporation
stockholders subject to special treatment under U.S. federal income tax law,
including, for example, foreign persons, financial institutions, dealers in
securities, traders in securities who elect to apply a mark-to-market method of
accounting, insurance companies, tax-exempt entities, holders who acquired their
shares of FMC Corporation common stock pursuant to the exercise of an employee

                                      3
<PAGE>



stock option or right or otherwise as compensation, and holders who hold FMC
Corporation common stock as part of a "hedge," "straddle," "constructive sale"
or "conversion transaction." In addition, no information is provided in this
document with respect to the tax consequences of the spin-off under applicable
foreign, state or local laws.

     Tax-Free Status of the Spin-off. We have received a private letter ruling
from the U.S. Internal Revenue Service stating that our distribution of FMC
Technologies, Inc. common stock to our common stock holders in connection with
the spin-off will be tax-free to us and to the holders of our common stock for
U.S. federal income tax purposes. This means that for U.S. federal income tax
purposes:

        - FMC Corporation common stockholders will not recognize a gain or
          loss by reason of the receipt of whole shares of FMC Technologies,
          Inc. common stock as a result of the spin-off; and

        - FMC Corporation will not recognize gain or loss as a result of the
          spin-off.

     Although private letter rulings are generally binding on the IRS, we will
not be able to rely on the ruling if any of the factual representations or
assumptions we made to obtain the ruling are, or become, incorrect or untrue in
any material respect. We are not aware of any facts or circumstances that would
cause any of these representations or assumptions to be incorrect or untrue in
any material respect. Nevertheless, if the IRS subsequently held our spin-off to
be taxable, the above consequences would not apply and both FMC Corporation and
our common stock holders could be subject to U.S. federal income tax.

     Subsequent Sale of Stock. If you sell your shares of FMC Technologies, Inc.
common stock or FMC Corporation common stock after the spin-off, you will
recognize gain or loss on such sale based on the difference between the proceeds
you receive from the sale and the tax basis allocated to the shares you sold as
described below under "Allocation of Tax Basis." This gain or loss will be a
capital gain or loss, assuming that you held such shares as a capital asset, and
will be a long-term or short-term gain or loss based on your holding period for
such shares as described below under "Holding Period."

     Allocation of Tax Basis. Your tax basis in the shares of FMC Corporation
common stock you hold immediately prior to the spin-off will be allocated
between the FMC Technologies, Inc. common stock and the FMC Corporation common
stock you hold immediately after the spin-off in proportion to the their
relative fair market values. Following the spin-off, your aggregate tax basis in
your shares of FMC Corporation common stock and FMC Technologies, Inc. common
stock, including any fractional shares sold for cash as described above, will be
the same as your tax basis in your shares of FMC Corporation common stock
immediately prior to the spin-off.

     The tax basis of a share of FMC Corporation common stock after the
distribution will equal the tax basis of the FMC Corporation common stock before
the distribution multiplied by a fraction the numerator of which is the fair
market value of a share of FMC Corporation common stock immediately after the
distribution and the denominator of which is the sum of the fair market value of
the FMC Corporation common share immediately after the distribution and the fair
market value of the FMC Technologies, Inc. common stock received in the
distribution with respect to such share of FMC Corporation common stock.

     The tax basis of a share of FMC Technologies, Inc. common stock after the
distribution is equal to the tax basis of the FMC Corporation common stock
before the distribution multiplied by a fraction the numerator of which is the
fair market value of a share of FMC Technologies, Inc. common stock immediately
after the distribution and the denominator of which is the sum of the fair
market value of the FMC Corporation common share immediately after the
distribution and the fair market value of the FMC Technologies, Inc. common
stock received in the distribution with respect to such share of FMC Corporation
common stock.

     Please note that this calculation must be repeated for each block of shares
that you own.

     Holding Period. The holding period of the shares of FMC Technologies, Inc.
common stock that you receive as a result of the spin-off will include, and be
the same as, the holding period for your shares of FMC Corporation common stock
with respect to which your distribution of FMC Technologies, Inc. common stock

                                      4
<PAGE>



was made, provided that your shares of FMC Corporation common stock are held as
a capital asset on the dividend payment date.

     Treatment of Fractional Shares. If you receive cash in lieu of a fractional
share of FMC Technologies, Inc. common stock as part of the spin-off, such cash
may be treated for U.S. federal income tax purposes as paid in exchange for such
fractional share of stock. Depending upon the type of investment account in
which you receive such a cash payment, you may realize a capital gain or loss,
provided that the fractional share is considered to be held as a capital asset,
measured by the difference between the cash you receive for such fractional
share and your tax basis in that fractional share as described above. This
capital gain or loss will be treated as a long-term or short-term gain or loss
based on your holding period for the FMC Corporation common stock on which you
received your distribution of FMC Technologies, Inc. common stock. The tax
treatment will vary to the extent the cash payment is received in a
tax-qualified investment account. You should consult your own tax advisors as to
the particular tax consequences to your tax-qualified investment account.

Example:

     To aid you in calculating the allocation of your tax basis, we have
provided an example below, based on the fictitious Companies A and B. In the
following example, "Company A" is the name of the parent company spinning off
its subsidiary, "Company B." Pursuant to Company A's distribution of the stock
it holds of Company B, each holder of Company A common stock is entitled to
receive 1.5 shares of Company B common stock for every share of Company A common
stock held by such holder.

          On July 1, 2000, Stockholder purchased 125 shares of Company A common
          stock at $20 per share for a total of $2,500 in a standard stock
          brokerage account. Stockholder's tax basis in her shares of Company A
          common stock is $2,500. Immediately after the spin-off, the fair
          market value of Company A common stock was $15 per share and the fair
          market value of Company B common stock was $30 per share. After the
          distribution, Stockholder was entitled to 187.5 shares of Company B
          common stock. Stockholder received 187 shares of Company B common
          stock and $15 in cash, one-half of the value of one share of Company B
          common stock.

               The tax basis allocable to a share of Company A common stock
          after the distribution is computed as follows:

               20 X (15 / (15 + (1.5 x 30))) = $5.00 per share, or
               20 X (15 / (15 + 45)) = $5.00 per share.

               The tax basis allocable to a share of Company B common stock
          after the distribution date is computed as follows:

               20 X (30 / (15 + (1.5 x 30))) = $10.00 per share, or
               20 X (30 / (15 + 45)) = $10.00 per share.

               Stockholder will be subject to long-term capital gains tax on
          $10.00, which is the difference between her basis in one half of a
          share of Company B common stock, or $5.00, and the $15 she received as
          payment for her half share of Company B common stock.

               We can test to prove that all of the original basis has been
          allocated and accounted for, as follows:

               125 shares of Company A stock X $5.00 per share equals $625.00,
               187 shares of Company B stock X $10.00 per share equals $1,870,
               and 1/2 share of Company B stock treated as sold X $10.00 per
               share equals $5.00.

               The sum of these three is $2,500.

               Please note that these calculations will need to be repeated for
          each block of shares in which a shareholder has a different basis.

     State, Local and Foreign Tax Consequences. The foregoing description
addresses only U.S. federal income tax consequences. You should consult your own
tax advisor regarding the state, local and foreign tax consequences of your
receipt of shares of FMC Technologies, Inc. common stock and any payment for
fractional shares.

                                      5
<PAGE>



     Tax Return Statement. U.S. Treasury regulations require you to attach a
detailed statement setting forth certain information regarding the distribution
to your U.S. federal income tax return for the year in which the spin-off
occurs. Within a reasonable time after completion of the spin-off, we will
provide you with the information necessary to comply with that requirement. You
should retain this statement so it can be completed and attached to your tax
return.

     The summary of U.S. federal income tax consequences set forth above is for
general information purposes only and may not be applicable to stockholders who
are not citizens or residents of the United States or who are otherwise subject
to special treatment under the Internal Revenue Code. All stockholders should
consult their own tax advisors as to the particular tax consequences to them of
the spin-off, including the state, local and (if applicable) foreign tax
consequences.

                   INFORMATION ABOUT FMC TECHNOLOGIES, INC.

Overview of FMC Technologies, Inc.'s Business

     FMC Technologies, Inc. designs, manufactures and services technologically
sophisticated systems and products for its customers through its Energy
Production Systems, Energy Processing Systems, FoodTech and Airport Systems
segments. Energy Production Systems is a leading supplier of systems and
services used in the offshore, particularly deepwater, exploration and
production of crude oil and natural gas. Energy Processing Systems is a leading
provider of specialized systems and products to customers involved in the
production, transportation and processing of crude oil, natural gas and refined
petroleum-based products. FoodTech is a leading supplier of technologically
sophisticated food handling and processing systems and products to industrial
food processing companies. Airport Systems provides technologically advanced
equipment and services for airlines, airports and air freight companies.

     Energy Production Systems is a global leader in the provision of subsea
drilling and production systems, including subsea tree systems that control the
flow of crude oil and natural gas from the well, systems for floating production
solutions and surface drilling and production systems, to oil and gas companies
involved in the exploration and production of crude oil and natural gas. Many of
the systems that FMC Technologies, Inc. provides are for use in the exploration,
development and production of crude oil and natural gas reserves located in
technologically challenging deepwater environments, which involve water depths
of greater than 1,000 feet.

     In subsea systems, FMC Technologies, Inc.'s largest business area:

        - FMC Technologies, Inc. is a major supplier of subsea tree systems
          and associated services to five of the eight companies that are
          projected to be the most active developers of subsea oil and gas over
          the next five years based on projected subsea tree installations.

        - Since 1995, FMC Technologies, Inc. has installed, or been awarded
          contracts for the installation of, more subsea tree systems than any
          other manufacturer.

        - FMC Technologies, Inc. set six of the ten water depth records
          established since 1987 for subsea tree installations.

     Energy Processing Systems designs, manufactures and supplies
technologically advanced high pressure valves and fittings for oilfield services
customers as well as liquid and gas measurement and transportation equipment and
systems to customers involved in the transportation and processing of crude oil,
natural gas and refined petroleum-based products. FMC Technologies, Inc. is a
leading supplier of flowline products. These high-pressure fittings, valves and
pumps are used by other oilfield services companies in the high-pressure pumping
of corrosive fracturing fluid into a well during the well servicing process. FMC
Technologies, Inc. is also a leading supplier of measurement systems and
services for the precise, cost-effective measurement of crude oil and natural
gas. In addition, FMC Technologies, Inc. is a leading supplier of marine and
land-based fluid

                                      6
<PAGE>



loading and transfer systems, including liquefied natural gas loading arms.
Finally, FMC Technologies, Inc. also develops and manufactures turnkey systems
used primarily for the blending and transfer of lubricants, petroleum, chemicals
and paints. The combination of Energy Production Systems and Energy Processing
Systems provides FMC Technologies, Inc. the ability to offer its customers a
broad spectrum of systems, equipment and services.

     FoodTech is a leading supplier of technologically sophisticated handling
and processing systems and services used for, among other things, convenience
food preparation and citrus juice extraction for industrial food processors.
FoodTech's products include citrus juice extraction equipment, commercial
freezing systems and sterilization systems. FMC Technologies, Inc. believes that
its equipment processes approximately 75% of the global production of orange
juice, freezes approximately 50% of commercially frozen foods on a global basis
and sterilizes a significant portion of the world's canned foods.

     Airport Systems designs, manufactures and services technologically advanced
ground support equipment and systems for airlines, airports and air freight
companies. FMC Technologies, Inc. invented airline passenger boarding bridges
and remains the leading supplier of this product. FMC Technologies, Inc.
believes that it also has the world's largest installed base of air cargo
loaders.

     FMC Technologies, Inc. has advised FMC Corporation that it intends to
pursue a growth strategy based on maintaining leading positions in its markets
by providing differentiated technological solutions for its customers and
capitalizing on its extensive customer relationships.

Background of the Separation of FMC Technologies, Inc. from FMC
Corporation

     On October 31, 2000, FMC Corporation announced its plan to create an
independent, publicly-traded company comprised of FMC Corporation's Energy
Systems and Food & Transportation Systems businesses. FMC Technologies, Inc. was
incorporated on November 13, 2000 as a wholly owned subsidiary of FMC
Corporation. On February 16, 2001, FMC Corporation's board of directors approved
the separation of FMC Technologies, Inc. from FMC Corporation and the initial
public offering of shares of FMC Technologies, Inc. common stock. The separation
of FMC Technologies, Inc. from FMC Corporation was substantially completed on
May 31, 2001. After the completion of FMC Technologies, Inc.'s initial public
offering in June 2001, FMC Corporation owned approximately 83.0% of the shares
of FMC Technologies, Inc. common stock.

     In the final step of the separation, FMC Corporation plans to distribute
all of the shares of FMC Technologies, Inc. common stock it owns to the holders
of FMC Corporation's common stock on a pro rata basis. On November 29, 2001, the
FMC Corporation board of directors approved the spin-off of 53,950,000 shares of
FMC Technologies, Inc. common stock that FMC Corporation owned to holders of FMC
Corporation common stock by means of a dividend as described in this Information
Statement. After the spin-off, FMC Corporation will not own any shares of FMC
Technologies, Inc. common stock, and FMC Technologies, Inc. will be a fully
independent, publicly traded company.

             INFORMATION ABOUT FMC TECHNOLOGIES, INC. COMMON STOCK

FMC Technologies, Inc. Common Stock

     Under FMC Technologies, Inc.'s Amended and Restated Certificate of
Incorporation, the authorized capital stock of the company is 195,000,000 shares
of common stock, $0.01 par value, and 12,000,000 shares of undesignated
preferred stock, $0.01 par value. As of December 12, 2001, there were 65,094,365
shares of FMC Technologies, Inc. common stock outstanding and no shares of FMC
Technologies, Inc. preferred stock outstanding.

                                      7
<PAGE>



     FMC Technologies, Inc.'s board of directors adopted a rights agreement in
June 2001. Pursuant to the rights agreement, one preferred share purchase right
was issued for each outstanding share of FMC Technologies, Inc. common stock.
The rights are subject to the terms of the rights agreement. The rights
initially trade with, and are inseparable from, FMC Technologies, Inc. common
stock. FMC Technologies, Inc.'s board of directors adopted the rights agreement
to protect FMC Technologies, Inc. stockholders from coercive or otherwise unfair
takeover tactics. In general terms, the rights agreement works by imposing a
significant penalty upon any person or group that acquires 15% or more of FMC
Technologies, Inc. common stock outstanding without the approval of FMC
Technologies, Inc.'s board of directors.

Market for FMC Technologies, Inc. Common Stock

     FMC Technologies, Inc. common stock trades on the New York Stock Exchange
under the symbol "FTI." A public market was established for FMC Technologies,
Inc. common stock as a result of FMC Technologies, Inc.'s initial public
offering in June 2001.

     The following table sets forth, for the periods indicated, the high and low
sale prices of FMC Technologies, Inc. common stock as reported on the NYSE. We
urge you to obtain current quotations for the FMC Technologies, Inc. common
stock.



                                             High        Low
                                            ------      ------
                       2001
              ---------------------
              June 14 to December 12        $22.48      $10.99


FMC Technologies, Inc. Transfer Agent

     The transfer agent and registrar for FMC Technologies, Inc. common stock is
Computershare Investor Services LLC. You may contact the transfer agent and
registrar at the address set forth below. All correspondence should be sent to
the following address:

                          Computershare Investor Services LLC
                          2 North LaSalle Street
                          Chicago, Illinois 60602
                          (800) 689-5259
                          (312) 360-5259

     FMC Technologies, Inc. and FMC Corporation are each subject to the
informational reporting requirements of the Securities Exchange Act of 1934, as
amended, and accordingly, each company files registration statements, reports,
proxy statements and other information with the SEC, including financial
statements. FMC Technologies, Inc. has been subject to the Securities Exchange
Act Reporting requirements for at least 90 days and is current in its reporting.
If you would like more information about FMC Technologies, Inc., we urge you to
read FMC Technologies, Inc.'s reports filed with the SEC.

     You may read and copy FMC Technologies, Inc.'s and FMC Corporation's
reports at the public reference facilities of the SEC at 450 Fifth Street, N.W.,
Washington, D.C. You may also inspect these reports at the SEC's website at
http://www.sec.gov or you may obtain copies of these materials at prescribed
rates from the Public Reference Section of the SEC, 450 Fifth Street, N.W.,
Washington, D.C. 20549. Please call the SEC at 1-800-SEC-0330 for further
information on the public reference rooms.

     Each of FMC Technologies, Inc. and FMC Corporation maintains a website that
offers additional information about the company.

     - Visit FMC Technologies, Inc.'s website at http://www.fmcti.com

     - Visit FMC Corporation's website at http://www.fmc.com

                                      8
<PAGE>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>7
<FILENAME>fmcex99-3_52724.txt
<DESCRIPTION>EXHIBIT 99.3 - PRESS RELEASE
<TEXT>
EXHIBIT 99.3


FMC CORPORATION COMPLETES SPIN-OFF OF FMC TECHNOLOGIES, INC.

Philadelphia, December 31, 2001 -- FMC Corporation (NYSE: FMC) announced today
it has completed the separation of FMC Technologies, Inc. (NYSE: FTI) through
the distribution of all of its remaining shares of FMC Technologies, Inc. common
stock owned by FMC Corporation. As a result of this distribution, FMC
Technologies, Inc. is now a fully independent company.

     On November 29, 2001, the FMC Corporation board of directors declared a
dividend to holders of FMC Corporation common stock consisting of 53,950,000
shares of FMC Technologies, Inc. common stock owned by FMC Corporation. These
shares represented approximately 83 percent of the outstanding FMC Technologies,
Inc. common stock. This dividend was paid as of 6:00 p.m. (Eastern Time), on
December 31, 2001, in the amount of 1.71972131 shares of FMC Technologies, Inc.
common stock for each share outstanding of FMC Corporation common stock. Cash
will be issued in lieu of fractional shares.

     On December 14, 2001, an information statement was mailed to FMC
Corporation shareholders that included information on the distribution ratio,
treatment of fractional shares, U.S. federal income tax treatment, background on
the businesses of FMC Technologies, Inc. and where shareholders could obtain
additional information.

     FMC Corporation and FMC Technologies, Inc. are each subject to the
informational reporting requirements of the Securities Exchange Act of 1934, as
amended, and accordingly, each company files registration statements, reports,
proxy statements and other information with the Securities and Exchange
Commission, including financial statements. Each company also maintains a
website that offers additional information about the company: FMC Corporation at
http://www.fmc.com and FMC Technologies at http://www.fmctechnologies.com.
- ------------------                         ------------------------------

     FMC Corporation is a global, diversified chemical company serving
agricultural, industrial and consumer markets for more than a century with
innovative solutions, applications and products. The company employs over 6,000
people throughout the world. FMC Corporation divides its businesses into three
segments: Agricultural Products, Specialty Chemicals and Industrial Chemicals.

     Safe Harbor Statement under the Private Securities Act of 1995: Statements
in this news release that are forward-looking statements are subject to various
risks and uncertainties concerning specific factors described in FMC
Corporation's 2000 Form 10-K and other SEC filings. Such information contained
herein represents management's best judgment as of the date hereof based on
information currently available. FMC Corporation does not intend to update this
information and disclaims any legal obligation to the contrary. Historical
information is not necessarily indicative of future performance.



</TEXT>
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