<PAGE>   1
                                                                  EXHIBIT 10.18



                            BUSINESS LOAN AGREEMENT

<TABLE>
<S>                                                    <C>
Borrower: Littlefield, Adams & Company, A New Jersey   Lender: THE BANK OF FLOYD
          Corporation (TIN: 22-1469846)                        P.O. BOX 215
          6262 Executive Boulevard                             101 JACKSONVILLE CIRCLE
          Huber Heights OH 45424                               FLOYD, VA 24091

</TABLE>

THIS BUSINESS LOAN AGREEMENT between Littlefield, Adams & Company, A New Jersey
Corporation ("Borrower) and THE BANK OF FLOYD ("Lender") is made on the
following terms and conditions.  Borrower has received prior commercial loans
from Lender or has applied to Lender for a commercial loan or loans and other
financial accommodations, including those which may be described on any exhibit
or schedule attached to this Agreement.  All such loans and financial
accommodations, together with all future loans and financial accommodations
from Lender to Borrower, are referred to in this Agreement individually as the
"Loan" and collectively as the "Loans."  Borrower understands and agrees that:
(a) in granting, renewing, or extending any Loan, Lender is relying upon
Borrower's representations, warranties, and agreements, as set forth in this
Agreement; (b) the granting, renewing, or extending of any Loan by Lender at
all times shall be subject to Lender's sole judgment and discretion; and (c)
all such Loans shall be and shall remain subject to the following terms and
conditions of this Agreement.

TERM.  This Agreement shall be effective as of February 1,1997, and shall
continue thereafter until all Indebtedness of Borrower to Lender has been
performed in full and the parties terminate this Agreement in writing.

DEFINITIONS.  The following words shall have the following meanings when used
in this Agreement.  Terms not otherwise defined in this Agreement shall have
the meanings attributed to such terms in the Uniform Commercial Code.  All
references to dollar amounts shall mean amounts in lawful money of the United
States of America.

      Agreement. The word "Agreement" means this Business Loan Agreement,
      as this Business Loan Agreement may be amended or modified from time to
      time, together with all exhibits and schedules attached to this Business
      Loan Agreement from time to time.

      Borrower. The word "Borrower" means Littlefield, Adams & Company, A New
      Jersey Corporation and its successors and assigns.  The word  "Borrower"
      also includes, as applicable, all subsidiaries and affiliates of
      Borrower as provided below in the paragraph titled "Subsidiaries and
      Affiliates."

      CERCLA  The word "CERCLA" means the Comprehensive Environmental Response,
      Compensation, and Liability Act of 1980, as amended.

      Collateral.  The word "Collateral" means and includes without limitation
      all property and assets granted as collateral security for a Loan,
      whether real or personal property, whether granted directly or
      indirectly, whether granted now or in the future, and whether granted in
      the form of a security interest, mortgage, deed of trust, assignment,
      pledge, chattel mortgage, chattel trust,  factor's lien, equipment trust,
      conditional sale, trust receipt, lien, charge, lien or title retention
      contract, lease or consignment intended as a security device, or any
      other security or lien interest whatsoever, whether created by law,
      contract, or otherwise.

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

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02-01-1997                        BUSINESS LOAN AGREEMENT               Page 2
Loan No 0105592300                        (Continued)


      Event of Default.  The words "Event of Default" mean and include without
      limitation any of the Events of Default set forth below in the section
      titled "EVENTS OF DEFAULT."

      Grantor.  The word "Grantor" means and includes without limitation
      each and all of the persons or entities granting a Security Interest in
      any Collateral for the Indebtedness, and their personal representatives,
      successors and assigns.

      Guarantor.  The word "Guarantor" means and includes without limitation
      each and all of the guarantors, sureties, and accommodation parties in
      connection with any Indebtedness and their personal representatives,
      successors and assigns.

      Indebtedness.  The word "Indebtedness" means and includes without
      limitation all Loans, including all principal, interest and other fees,
      costs and charges, if any, together with all other present and future
      liabilities and obligations of Borrower, or any one or more of them, to
      Lender, whether direct or indirect, matured or unmatured, and whether
      absolute or contingent, joint, several, or joint and several, and
      no matter how the same may be evidenced or shall arise.

      Lender.  The word "Lender" means THE BANK OF FLOYD, its successors and
      assigns.

      Loan.  The word "Loan" or "Loans" means and includes without limitation
      any and all commercial loans and financial accommodations from Lender to
      Borrower, whether now or hereafter existing, and however evidenced,
      including without limitation those loans and financial accommodations
      described herein or described on any exhibit or schedule attached to
      this Agreement from time to time.

      Note. The word "Note" means and includes without limitation Borrower's
      promissory note or notes, if any, evidencing Borrower's Loan obligations
      in favor of Lender, as well as any substitute, replacement or
      refinancing note or notes therefor.

      Permitted Liens.  The words "Permitted Liens" mean: (a) liens and
      security interests securing Indebtedness owed by Borrower to Lender; (b)
      liens for taxes, assessments or similar charges either not yet due or
      being contested in good faith; (c) liens of materialmen, mechanics
      warehousemen, or carriers, or, other like liens arising in the ordinary
      course of business and securing obligations which are not yet delinquent;
      (d) purchase money liens or purchase money security interests upon or in
      any property acquired or held by Borrower in the ordinary course of
      business to secure indebtedness outstanding on the date of this
      Agreement or permitted to be incurred under the paragraph of this
      Agreement titled "Indebtedness and Liens"; (e) liens and security
      interests which, as of the date of this Agreement, have been disclosed to
      and approved by the Lender in writing; and (f) those liens and security
      interests which in the aggregate constitute an immaterial and
      insignificant monetary amount with respect to the net value of Borrower's
      assets.

      Related Documents.  The words "Related Documents" mean and include
      without limitation all promissory notes, credit agreements, loan
      agreements, environmental agreements, guaranties, security agreements,
      mortgages, deeds of trust, and all other instruments, agreements and
      documents, whether now or hereafter existing, executed in connection
      with the Indebtedness.

      Security Agreement.  The words "Security Agreement" mean and include
      without limitation any agreements, promises, covenants, arrangements,
      understandings or other agreements, whether
<PAGE>   3


02-01-1997                        BUSINESS LOAN AGREEMENT               Page 3
Loan No 0105592300                       (Continued)


      created by law, contract, or otherwise, evidencing, governing,
      representing, or creating a Security Interest.

      Security Interest.  The words "Security Interest" mean and include
      without limitation any and all types of liens and encumbrances, whether
      created by law, contract, or otherwise.

      SARA.  The word "SARA" means the Superfund Amendments and
      Reauthorization Act of 1986 as now or hereafter amended.

CONDITIONS PRECEDENT TO EACH ADVANCE. Lender's obligation to make the initial
Loan Advance and each subsequent Loan Advance under this Agreement shall be
subject to the fulfillment to Lender's satisfaction of all of the conditions
set forth in this Agreement and in the Related Documents.

      Loan Documents.  Borrower shall provide to Lender in form satisfactory to
      Lender the following documents for the Loan: (a) the Note, (b) Security
      Agreements granting to Lender security interests in the Collateral, (c)
      Financing Statements perfecting Lender's Security Interests; (d)
      evidence of insurance as required below; and (e) any other documents
      required under this Agreement or by Lender or its counsel.

      Borrower's Authorization.  Borrower shall have provided in form and
      substance satisfactory to Lender properly certified resolutions, duly
      authorizing the execution and delivery of this Agreement, the Note and
      the Related Documents, and such other authorizations and other
      documents and instruments as Lender or its counsel, in their sole
      discretion, may require.

      Payment of Fees and Expenses.  Borrower shall have paid to Lender all
      fees, charges, and other expenses which are then due and payable as
      specified in this Agreement or any Related Document.

      Representations and Warranties.  The representations and warranties
      set forth in this Agreement, in the Related Documents, and in any
      document or certificate delivered to Lender under this Agreement are
      true and correct.

      No Event of Default.  There shall not exist at the time of any advance
      a condition which would constitute an Event of Default under this
      Agreement.

REPRESENTATIONS AND WARRANTIES. Borrower represents and warrants to Lender, as
of the date of this Agreement, as of the date of each disbursement of Loan
proceeds, as of the date of any renewal, extension or modification of any Loan,
and at all times any Indebtedness exists:

      Organization.  Borrower is a corporation which is duly organized, validly
      existing, and in good standing under the laws of the state of Borrower's
      incorporation and is validly existing and in good standing in all states
      in which Borrower is doing business.  Borrower has the full power and
      authority to own its properties and to transact the businesses in which
      it is presently engaged or  presently proposes to engage.  Borrower also
      is duly qualified as a foreign corporation and is in good standing in
      all states in which the failure to so qualify would have a material
      adverse effect on its businesses or financial condition.

      Authorization.  The execution, delivery, and performance of this
      Agreement and all Related Documents by Borrower to the extent to be
      executed delivered or performed by Borrower, have
<PAGE>   4

02-01-1997                        BUSINESS LOAN AGREEMENT                page 4
Loan No 0105592300                      (Continued)


      been duly authorized by all necessary action by Borrower; do not require
      the consent or approval of any other person, regulatory authority or
      governmental body; and do not conflict with, result in a violation of,
      or constitute a default under (a) any provision of its articles of
      incorporation or organization, or bylaws, or any agreement or other
      instrument binding upon Borrower or (b) any law, governmental
      regulation, court decree, or order applicable to Borrower.

      Financial Information.  Each financial statement of Borrower supplied to
      Lender truly and completely disclosed Borrower's financial condition as
      of the date of the statement, and there has been no material adverse
      change in Borrower's financial condition subsequent to the date of the
      most recent financial statement supplied to Lender.  Borrower has no
      material contingent obligations except as disclosed in such financial
      statements.

      Legal Effect This Agreement constitutes, and any instrument or agreement
      required hereunder to be given by Borrower when delivered will
      constitute, legal, valid and binding obligations of Borrower enforceable
      against Borrower in accordance with their respective terms.

      Properties.  Except as contemplated by this Agreement or as previously
      disclosed in Borrower's financial statements or in writing to Lender and
      as accepted by Lender, and except for property tax liens for taxes not
      presently due and payable, Borrower owns and has good title to all of
      Borrower's properties free and clear of all Security Interests, and has
      not executed any security documents or financing statements relating to
      such properties.  All of Borrower's properties are titled in Borrower's
      legal name, and Borrower has not used, or filed a financing statement
      under, any other name for at least the last five (5) years.

      Hazardous Substances  The terms "hazardous waste," "hazardous substance,"
      "disposal," "release," and "threatened release," as used in this
      Agreement, shall have the same meanings as set forth in the "CERCLA,"
      "SARA," the Hazardous Materials Transportation Act, 49 U.S.C.  Section
      1801, et  seq., the Resource Conservation and Recovery Act, 42 U.S.C.
      Section 6901, et seq., or other applicable state or Federal laws, rules,
      or regulations adopted pursuant to any of the foregoing.  Except as
      disclosed to and acknowledged by Lender in writing, Borrower represents
      and warrants that: (a) During the period of Borrower's ownership of the
      properties, there has been no use, generation, manufacture, storage,
      treatment, disposal, release or threatened release of any hazardous
      waste or substance by any person on, under, about or from any of the
      properties. (b) Borrower has no knowledge of, or reason to believe that
      there has been (i) any use, generation, manufacture, storage, treatment,
      disposal, release, or threatened release of any hazardous waste or
      substance on, under, about or from the properties by any prior owners or
      occupants of any of the properties, or (ii) any actual or threatened
      litigation or claims of any kind by any person relating to such matters.
      (c) Neither Borrower nor any tenant, contractor, agent or other
      authorized user of  any of the properties shall use, generate,
      manufacture, store, treat dispose of, or release any hazardous waste or
      substance on, under, about or from any of the properties; and any such
      activity shall be conducted in compliance with all applicable federal,
      state, and local laws, regulations, and ordinances, including without
      limitation those laws, regulations and ordinances described above.
      Borrower authorizes Lender and its agents to enter upon the properties
      to make such inspections and tests as Lender may deem appropriate to
      determine compliance of the properties with this section of the
      Agreement.  Any inspections or tests made by Lender shall be at
      Borrower's expense and for Lender's purposes only and shall not be
      construed to create any responsibility or liability on the part of
      Lender to Borrower or to any other person.  The representations and
      warranties contained herein are based on Borrower's due diligence in
      investigating the properties for hazardous waste and hazardous
      substances.  Borrower hereby (a) releases and waives any

<PAGE>   5

02-01-1997                        BUSINESS LOAN AGREEMENT                Page 5
Loan No 0105592300                       (Continued)


      future claims against Lender for indemnity or contribution in the event
      Borrower becomes liable for cleanup or other costs under any such laws,
      and (b) agrees to indemnify and hold harmless Lender against any and all
      claims, losses, liabilities, damages, penalties, and expenses which
      Lender may directly or indirectly sustain or suffer resulting from a
      breach of this section of the agreement or as a consequence of any use,
      generation, manufacture, storage, disposal, release or threatened release
      occurring prior to Borrower's ownership or interest in the properties,
      whether or not the same was or should have been known to Borrower.  The
      provisions of this section of the Agreement, including the obligation
      to indemnify, shall survive the payment of the Indebtedness  and the
      termination or expiration of this Agreement and shall not be affected by
      Lender's acquisition of any interest in any of the properties, whether by
      foreclosure or otherwise.

      Litigation and Claims.  No litigation, claim, investigation,
      administrative proceeding or similar action (including those for unpaid
      taxes) against Borrower is pending or threatened, and no other event
      has occurred which may materially adversely affect Borrower's financial
      condition or properties, other than litigation, claims, or other events,
      if any, that have been disclosed to and acknowledged by Lender in writing.

      Taxes.  To the best of Borrower's knowledge, all tax returns and reports
      of Borrower that are or were required to be filed, have been filed, and
      all taxes, assessments and other governmental charges have been paid
      in full, except those presently being or to be contested by Borrower in
      good faith in the ordinary course of business and for which adequate
      reserves have been provided.

      Lien Priority.  Unless otherwise previously disclosed to Lender in
      writing, Borrower has not entered into or granted any Security
      Agreements, or permitted the filing or attachment of any Security
      Interests on or affecting any of the Collateral directly or indirectly
      securing repayment of Borrower's Loan and Note, that would be prior or
      that may in any way be superior to Lender's Security Interests and rights
      in and to such Collateral.

      Binding Effect.  This Agreement, the Note, all Security Agreements
      directly or indirectly securing repayment of Borrower's Loan and Note and
      all of the Related Documents are binding upon Borrower as well as upon
      Borrower's successors, representatives and assigns, and are legally
      enforceable in accordance with their respective terms.

      Commercial Purposes  Borrower intends to use the Loan proceeds solely
      for business or commercial related purposes.

      Employee Benefit Plans.  Each employee benefit plan as to which Borrower
      may have any liability complies in all material respects with all
      applicable requirements of law and regulations, and (i) no Reportable
      Event nor Prohibited Transaction (as defined in ERISA) has occurred with
      respect to any such plan, (ii) Borrower has not withdrawn from any such
      plan or initiated steps to  do so, (iii) no steps have been taken to
      terminate any such plan, and (iv) there are no unfunded liabilities other
      than those previously disclosed to Lender in writing.

      Location of Borrower's Offices and Records.  Borrower's place of
      business, or Borrower's Chief executive office, if Borrower has more than
      one place of business, is located at 6262 Executive Boulevard,
      Huber Heights, OH 45424.  Unless Borrower has designated otherwise in
      writing this location is also the office or offices where Borrower keeps
      its records concerning the Collateral.

<PAGE>   6




02-01-1997                        BUSINESS LOAN AGREEMENT                Page 6
Loan No 0105592300                       (Continued)

      Information.  All information heretofore or contemporaneously herewith
      furnished by Borrower to Lender for the purposes of or in connection with
      this Agreement or any transaction contemplated hereby is, and all
      information hereafter furnished by or on behalf of Borrower to Lender
      will be true and accurate in every material respect on the date as of
      which such information is dated or  certified; and none of such
      information is or will be incomplete by omitting to state any material
      fact necessary to make such information not misleading.

      Survival of Representations and Warranties.  Borrower understands and
      agrees that Lender, without independent investigation, is relying upon
      the above representations and warranties in making the above referenced
      Loan to Borrower.  Borrower further agrees that the foregoing
      representations and warranties shall be continuing in nature and
      shall remain in full force and effect until such time as Borrower's
      Indebtedness shall be paid in full, or until this Agreement shall
      be terminated in the manner provided above, whichever is the last to
      occur.

AFFIRMATIVE COVENANTS.  Borrower covenants and agrees with Lender that, while
this Agreement is in effect, Borrower will:

      Litigation. Promptly inform Lender in writing of (a) all material adverse
      changes in Borrower's financial condition, and (b) all existing and all
      threatened litigation, claims, investigations, administrative
      proceedings or similar actions affecting Borrower or any Guarantor which
      could materially affect the financial condition of Borrower or the
      financial condition of any Guarantor.

      Financial Records. Maintain its books and records in accordance with
      generally accepted accounting principles, applied on a consistent basis,
      and permit Lender to examine and audit Borrower's books and records at
      all reasonable times.

      Financial Statements.  Furnish Lender with, as soon as available, but in
      no event later than thirty (30) days after the end of each fiscal year,
      Borrower's balance sheet and income statement for the  year ended,
      compiled by a certified public accountant satisfactory to Lender.  All
      financial reports required to be provided under this Agreement shall
      be prepared in accordance with generally accepted accounting principles,
      applied on a consistent basis, and certified by Borrower as being true
      and correct.

      Additional Information.  Furnish such additional information and
      statements, lists of assets and liabilities, agings of receivables and
      payables, inventory schedules, budgets, forecasts, tax returns, and
      other reports with respect to Borrower's financial condition and business
      operations as Lender may request from time to time.

      Insurance.  Maintain fire and other risk insurance, public liability
      insurance, and such other insurance as Lender may from time to time
      reasonably require with respect to Borrower's properties and operations,
      in form, amounts, coverages and with insurance companies acceptable to
      Lender. Borrower, upon request of Lender, will deliver to Lender from

      time to time the policies or certificates of insurance in form
      satisfactory to Lender, including stipulations that coverages will
      not be cancelled or diminished without at least ten (10) days' prior
      written notice to Lender.  Each insurance policy also shall include
      an endorsement providing that coverage in favor of Lender will not be
      impaired in any way by any act, omission or default of Borrower or any
      other person.  In connection with all policies covering assets in which
      Lender holds or is offered a security interest for the Loans, Borrower
      will provide Lender with such loss payable or other endorsements
      as Lender may require.
<PAGE>   7

02-01-1997                        BUSINESS LOAN AGREEMENT                Page 7
Loan No 0105592300                      (Continued)


      Insurance Reports.  Furnish to Lender, upon request of Lender, reports on
      each existing insurance policy showing such information as Lender may
      reasonably request, including without limitation the following: (a) the
      name of the insurer; (b) the risks insured; (c) the amount of the policy
      (d) the properties insured; (e) the then current property values on the
      basis of which insurance has  been obtained, and the manner of
      determining those values; and (f) the expiration date of the policy.  In
      addition, upon request of Lender (however not more often than annually),
      Borrower will have an independent appraiser satisfactory to Lender
      determine, as applicable, the actual cash value or replacement cost of
      any Collateral.  The cost of such appraisal shall be paid by Borrower.

      Other Agreements.  Comply with all terms and conditions of all other
      agreements, whether now or hereafter existing, between Borrower and any
      other party and notify Lender immediately in writing of any default
      in connection  with any other such agreements.

      Loan Proceeds.  Use all Loan proceeds solely for Borrower's business
      operations, unless specifically consented to the contrary by Lender in
      writing.

      Taxes, Charges and Liens.  Pay and discharge when due all of its
      indebtedness and obligations, including without limitation all
      assessments, taxes, governmental charges, levies and liens, of every
      kind and nature, imposed upon Borrower or its properties, income, or
      profits, prior to the date on which penalties would attach, and all
      lawful claims that, if unpaid, might become a lien or charge upon any of
      Borrower's properties, income, or profits.  Provided however, Borrower
      will not be required to pay and discharge any such assessment, tax,
      charge, levy, lien or claim so long as (a) the legality of the same
      shall be contested in good faith by appropriate proceedings, and (b)
      Borrower shall have established on its books adequate reserves with
      respect to such contested  assessment, tax, charge, levy, lien, or claim
      in accordance with generally accepted accounting practices. Borrower,
      upon demand of Lender, will furnish to Lender evidence of payment of the
      assessments, taxes, charges, levies, liens and claims and will authorize
      the appropriate governmental official to deliver to Lender at any time a
      written statement of any assessments, taxes, charges, levies, liens and
      claims against Borrower's properties, income, or profits.

      Performance.  Perform and comply with all terms, conditions, and
      provisions set forth in this Agreement and in the Related Documents in a
      timely manner, and promptly notify Lender if Borrower learns of the
      occurrence of any event which constitutes an Event of Default under this
      Agreement or under any of the Related Documents.

      Operations.  Maintain executive and management personnel with
      substantially the same qualifications and experience as the present
      executive and management personnel; provide written notice to Lender of
      any change in executive and management personnel, conduct its
      business affairs in a reasonable and prudent manner and in compliance
      with all applicable federal, state and municipal laws, ordinances, rules
      and regulations respecting its properties, charters, businesses and
      operations, including without limitation, compliance with the Americans
      With Disabilities Act and with all minimum funding standards and other
      requirements of ERISA and other laws applicable to Borrower's employee
      benefit plans.

      Inspection.  Permit employees or agents of Lender at any reasonable
      time to inspect any and all Collateral for the Loan or Loans and
      Borrower's other properties and to examine or audit Borrower's books,
      accounts, and records and to make copies and memoranda of Borrower's
      books,
<PAGE>   8

2-01-1997                         BUSINESS LOAN AGREEMENT                Page 8
Loan No 0105592300                      (Continued)


      accounts, and records.  If Borrower now or at any time hereafter
      maintains any records (including without limitation computer generated
      records and computer software programs for the generation of such
      records) in the possession of a third party, Borrower, upon request of
      Lender, shall notify such party to permit Lender free access to such
      records at all reasonable times and to provide Lender with copies of any
      records it may request, all at Borrower's expense.

      Compliance Certificate.  Unless waived in writing by Lender, provide
      Lender at least annually and at the time of each disbursement of Loan
      proceeds with a certificate executed by Borrower's chief financial
      officer, or other officer or person acceptable to Lender, certifying
      that the representations and warranties set forth in this Agreement are
      true and correct as of the date of the certificate and further
      certifying that, as of the date of the certificate, no Event of Default
      exists under this Agreement.

      Environmental Compliance and Reports.  Borrower shall comply in all
      respects with all environmental protection federal, state and local laws,
      statutes, regulations and ordinances; not cause or permit to exist, as a
      result of an intentional or unintentional action or omission on its part
      or on the part of any third party, on property owned and/or occupied by
      Borrower, any environmental activity where damage may result to the
      environment, unless such environmental activity is pursuant to and in
      compliance with the conditions of a permit issued by the appropriate
      federal, state or local governmental authorities; shall furnish to Lender
      promptly and in any event within thirty (30) days after receipt thereof a
      copy of any notice, summons, lien, citation, directive, letter or other
      communication from any governmental agency or instrumentality concerning
      any intentional or unintentional action or omission on Borrower's part in
      connection  with any environmental activity whether or not there is
      damage to the environment and/or other natural resources.

      Additional Assurances.  Make, execute and deliver to Lender such
      promissory notes, mortgages, deeds of trust, security agreements,
      financing statements, instruments, documents and other agreements as
      Lender or its attorneys may reasonably request to evidence and secure the
      Loans and to perfect all Security Interests.

NEGATIVE COVENANTS.  Borrower covenants and agrees with Lender that while this
Agreement is in effect, Borrower shall not, without the prior written consent
of Lender:

      Indebtedness.  Except for trade debt incurred in the normal course of
      business and indebtedness to Lender contemplated by this Agreement,
      create, incur or assume indebtedness for borrowed money, including
      capital leases.

      Continuity of Operations.  (a) Engage in any business activities
      substantially different than those in which Borrower is presently
      engaged, (b) cease operations, liquidate, merge, transfer, acquire or
      consolidate with any other entity, change ownership, change its name,
      dissolve or transfer or sell Collateral out of the ordinary course of
      business, (c) pay any dividends on Borrower's stock  (other than
      dividends payable in its stock), provided, however that notwithstanding
      the foregoing, but only so long as no Event of Default has occurred and
      is continuing or would result from the payment of dividends, if Borrower
      is a "Subchapter S Corporation" (as defined in the Internal Revenue Code
      of 1986, as amended), Borrower may pay cash dividends on its stock to its
      shareholders from time to time in amounts necessary to enable the
      shareholders to pay income taxes and make estimated income tax payments
      to satisfy their liabilities under federal and state
<PAGE>   9



02-01-1997                        BUSINESS LOAN AGREEMENT                Page 9
Loan No 0105592300                      (Continued)


      law which arise solely from their status as Shareholders of a Subchapter
      S Corporation because of their ownership of shares of stock of Borrower,
      or (d) purchase or retire any of Borrower's outstanding shares or
      alter or amend Borrower's capital structure.

      Loans, Acquisitions and Guaranties.  (a) Loan, invest in or advance
      money or assets, (b) purchase, create or acquire any interest in any
      other enterprise or entity, or (c) incur any obligation as surety or
      guarantor other than in the ordinary course of business.

CESSATION OF ADVANCES   If Lender has made any commitment to make any Loan to
Borrower, whether under this Agreement or under any other agreement, Lender
shall have no obligation to make Loan Advances or to disburse Loan proceeds if:
(a) Borrower or any Guarantor is in default under the terms of this Agreement
or any of the Related Documents or any other agreement that Borrower or any
Guarantor has with Lender; (b) Borrower or any Guarantor becomes insolvent,
files a petition in bankruptcy or similar proceedings, or is adjudged a
bankrupt; (c) there occurs a material adverse change in Borrower's financial
condition, in the financial condition of any Guarantor, or in the value of any
Collateral securing any Loan; (d) any Guarantor seeks, claims or otherwise
attempts to limit, modify or revoke such Guarantor's guaranty of the Loan or
any other loan with Lender; or (e) Lender in good faith deems itself insecure,
even though no Event of Default shall have occurred.

SIGNATURES AND SEALS.  In witness whereof, I have signed my name and affixed my
seal.

RIGHT OF SETOFF.  Borrower grants to Lender a contractual possessory security
interest in, and hereby assigns, conveys, delivers, pledges, and transfers to
Lender all Borrower's right, title and interest in and to, Borrower's accounts
with Lender (whether checking, savings, or some other account), including
without limitation all accounts held jointly with someone else and all accounts
Borrower may open in the future, excluding however all IRA and Keogh accounts,
and all trust accounts for which the grant of a security interest would be
prohibited by law.  Borrower authorizes Lender, to the extent permitted by
applicable law, to charge or setoff all sums owing on the Indebtedness against
any and all such accounts.

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

      Default on Indebtedness.  Failure of Borrower to make any payment when
      due on the Indebtedness.

      Other Defaults.  Failure of Borrower or any Grantor to comply with or
      to perform when due any other term, obligation, covenant or condition
      contained in this Agreement or in any of the Related Documents, or
      failure of Borrower  to comply with or to perform any other term,
      obligation, covenant or condition contained in any other agreement
      between Lender and Borrower.

      False Statements.  Any warranty, representation or statement made or
      furnished to Lender by or on behalf of Borrower or any Grantor under this
      Agreement or the Related Documents is false or misleading in any material
      respect at the time made or furnished, or becomes false or misleading at
      any time thereafter.

      Defective Collateralization.  This Agreement or any of the Related
      Documents ceases to be in full force and effect (including failure of any
      Security Agreement to create a valid and perfected Security interest) at
      any time and for any reason.

<PAGE>   10

02-01-1997                        BUSINESS LOAN AGREEMENT               Page 10
Loan No 0105592300                      (Continued)


      Insolvency.  The dissolution or termination of Borrower's existence as
      a going business, or a trustee or receiver is appointed for Borrower or
      for all or a substantial portion of the assets of Borrower, or Borrower
      makes a general assignment for the benefit of Borrower's creditors, or
      Borrower files for bankruptcy, or an involuntary bankruptcy petition is
      filed against Borrower and such involuntary petition remains undismissed
      for sixty (60) days.

      Creditor or Forfeiture Proceedings.  Commencement of foreclosure or
      forfeiture proceedings, whether by judicial proceeding, self-help
      repossession or any other method, by any creditor of Borrower, any
      creditor of any Grantor against any collateral securing the Indebtedness,
      or by any governmental agency.  This includes a garnishment, attachment,
      or levy on or of any of Borrower's deposit accounts with Lender.

      Events Affecting Guarantor.  Any of the preceding events occurs with
      respect to any Guarantor of any of the Indebtedness or any Guarantor dies
      or becomes incompetent, or revokes or disputes the validity of, or
      liability under, any Guaranty of the Indebtedness.

      Change In Ownership.  Any change in ownership of twenty-five percent
      (25%) or more of the common stock of Borrower.

      Adverse Change.  A material adverse change occurs in Borrower's
      financial condition, or Lender believes the prospect of payment or
      performance of the Indebtedness is impaired.

      Insecurity.  Lender, in good faith, deems itself insecure.

EFFECT OF AN EVENT OF DEFAULT.  If any Event of Default shall occur, except
where otherwise provided in this Agreement or the Related Documents, all
commitments and obligations of Lender under this Agreement or the Related
Documents or any other agreement immediately will terminate and, at Lender's
option, all sums owing in connection with the Loans, including all principal,
interest, and all other fees, costs and charges, if any, will become
immediately due and payable, all without notice of any kind to Borrower, except
that in the case of an Event of Default of the type described in the
"Insolvency" subsection above, such acceleration shall be automatic and not
optional.  In addition, Lender shall have all the rights and remedies provided
in the Related Documents or available at law, in equity, or otherwise.  Except
as may be prohibited by applicable law, all of Lender's rights and remedies
shall be cumulative and may be exercised singularly or concurrently.  Election
by Lender to pursue any remedy shall not exclude pursuit of any other remedy,
and an election to make expenditures or to take action to perform an obligation
of Borrower or of any Grantor shall not affect lender's right to declare a
default and to exercise its rights and remedies.

MISCELLANEOUS PROVISIONS.  The following miscellaneous provisions are a part of
this Agreement:

      Amendments.  This Agreement, together with any Related Documents,
      constitutes the entire understanding and agreement of the parties as to
      the matters set forth in this Agreement.  No alteration of or amendment
      to this Agreement shall be effective unless given in writing and signed
      by the party or parties sought to be charged or bound by the alteration
      or amendment.

      Applicable Law.  This Agreement shall be governed by, construed and
      enforced in accordance with the laws of the Commonwealth of Virginia.

<PAGE>   11


02-01-1997                        BUSINESS LOAN AGREEMENT                Page 11
Loan No 0105592300                      (Continued)

      Caption Headings.  Caption headings in this Agreement are for
      convenience purposes only and are not to be used to interpret or define
      the provisions of this Agreement.

      Multiple Parties; Corporate Authority.  All obligations of Borrower under
      this Agreement shall be joint and several, and all references to Borrower
      shall mean each and every Borrower.  This means that each of the
      Borrowers signing below is responsible for all obligations in this
      Agreement.

      Consent to Loan Participation.  Borrower agrees and consents to Lender's
      sale or transfer, whether now or later, of one or more participation
      interests in the Loans to one or more purchasers, whether related or
      unrelated to Lender. Lender may provide, without any limitation
      whatsoever, to any one or more purchasers, or potential purchasers, any
      information or knowledge Lender may  have about Borrower or about any
      other matter relating to the Loan, and Borrower hereby waives any rights
      to privacy it may have with respect to such matters.  Borrower
      additionally waives any and all notices of sale of participation
      interests, as well as all notices of any repurchase of such participation
      interests.  Borrower also agrees that the purchasers of any such
      participation interests  will be considered as the absolute owners of
      such interests in the Loans and will have all the rights granted under
      the participation agreement or agreements governing the sale of such
      participation interests.  Borrower further waives all rights of offset or
      counterclaim that it may have now or later against Lender or against any
      purchaser of such a participation interest and unconditionally agrees
      that either Lender or such purchaser may enforce Borrower's obligation
      under the Loans irrespective of the failure or insolvency of any holder
      of any interest in the Loans. Borrower further agrees that the purchaser
      of any such participation interests may enforce its interests
      irrespective of any personal claims or defenses that Borrower may have
      against Lender.

      Costs and Expenses.  Borrower agrees to pay upon demand all of
      Lender's out-of-pocket expenses incurred in connection with this
      Agreement or in connection with the Loans made pursuant to this
      Agreement.  Subject to any limits under applicable law, if Lender hires
      an attorney to help enforce this Agreement or to collect any
      Indebtedness, Borrower agrees to pay Lender's attorneys' fees,  and all
      of Lender's other collection expenses, whether or not there is a lawsuit
      and including legal expenses for bankruptcy proceedings.

      Notices.  All notices required to be given under this Agreement shall be
      given in writing, may be sent by telefacsimilie, and shall be effective
      when actually delivered if hand delivered or when deposited with a
      nationally recognized overnight courier or deposited as certified or
      registered mail in the United States mail, first class, postage
      prepaid, addressed to the party to whom the notice is to be given at the
      address shown above.  Any party may change its address for notices under
      this Agreement by giving formal written notice to the other parties,
      specifying that the purpose of the notice is to change the party's
      address.  To the extent permitted by applicable law, if there is more
      than one Borrower, notice to any Borrower will constitute notice to all
      Borrowers.  For notice purposes, Borrower will keep Lender informed at
      all times of Borrower's current address(es).

      Severability.  If a court of competent jurisdiction finds any provision
      of this Agreement to be invalid or unenforceable as to any person or
      circumstance, such finding shall not render that provision invalid or
      unenforceable as to any other persons or circumstances.  If feasible, any
      such offending provision shall be deemed to be modified to be within
      the limits of enforceability or validity; however, if the offending
      provision cannot be so modified, it shall be stricken and all other
      provisions of this Agreement in all other respects shall remain valid and
      enforceable.

<PAGE>   12

02-01-1997                        BUSINESS LOAN AGREEMENT               Page 12
Loan No 0105592300                       (Continued)


      Subsidiaries and Affiliates of Borrower.  To the extent the context of
      any provisions of this Agreement makes it appropriate, including without
      limitation any representation, warranty or ovenant, the word "Borrower"
      as used herein shall include all subsidiaries and affiliates of Borrower.
      Notwithstanding the foregoing however, under no circumstances shall this
      Agreement be construed to require Lender to make any Loan or other
      financial accommodation to any subsidiary or affiliate of Borrower.

      Successors and Assign.  All covenants and agreements contained by or
      on behalf of Borrower shall bind its successors and assigns and shall
      inure to the benefit of Lender, its successors and assigns.  Borrower
      shall not, however, have the right to assign its rights under this
      Agreement or any interest therein, without the prior written consent of
      Lender.

      Survival.  All warranties, representations, and agreements of Borrower
      in this Agreement shall survive the making of the Loan or Loans
      contemplated hereby, and shall be deemed made and redated by Borrower at
      the time of the making of each disbursement of Loan proceeds.

      Time is of the Essence.  Time is of the essence in the performance of
      this Agreement.

      Waiver.  Indulgence by Lender with respect to any of the terms and
      conditions of this Agreement or the failure of Lender to exercise any of
      its rights under this Agreement shall not constitute a waiver thereof,
      and Borrower shall remain liable for the strict performance of such terms
      and conditions until this Agreement shall be terminated.  No provision of
      this Agreement may be waived or modified orally, but all such waivers or
      modifciations shall be in writing.  Whenever the consent of Lender is
      required under this Agreement, the granting of such consent by Lender in
      one instance shall not constitute Lender's continuing consent in
      subsequent instances, and in all cases such consent may be granted or
      withheld in the sole discretion of Lender.
<PAGE>   13

02-01-1997                        BUSINESS LOAN AGREEMENT              Page 13
Loan No 0105592300                      (Continued)


THIS BUSINESS LOAN AGREEMENT IS SIGNED, SEALED AND DELIVERED EFFECTIVE IN ALL
RESPECTS AS OF FEBRUARY 1,1997.


BORROWER:

Littlefield, Adams & Company, A New Jersey Corporation

<TABLE>
<S>                                                        <C>
By:  /s/ David M. Simmonds             (SEAL)              By:  /s/ Stanley I. Halbreich      (SEAL)
     ----------------------------------------------             ---------------------------------------
     David M. Simmonds, Chairman, President and CEO             Stanley I. Halbreich, Treasurer and CEO

</TABLE>

By:  /s/ Warren L. Rawls               (SEAL)
     -------------------------------------------
       Warren L. Rawls, Secretary and Controllor


LENDER:

THE BANK OF FLOYD

By :  /s/ Lawrence M. Renfroe
       -------------------------------------
       Authorized Officer


                 State of Ohio

                 County of Montgomery

                          On this 10th day of March, 1997, before me appeared
                 David M. Simmonds, Stanley I. Halbreich, and Warren L. Rawls
                 and executed the foregoing document.

                                  /s/Mary Burns
                                  --------------------
                                  Mary C. Burns
                                  Notary Public     MARY C. BURNS, Notary Public
                                                    In and for the State of Ohio
                                                    My Commission Expires
                                                    Jan 26,1998