Document:

<PAGE>   1
                                                                    EXHIBIT 4(5)

                           THIRD AMENDED AND RESTATED
                                CREDIT AGREEMENT

                                   DATED AS OF

                                JANUARY 23, 2001

                                      AMONG

                            AMERADA HESS CORPORATION,

                            THE LENDERS PARTY HERETO,

                       GOLDMAN SACHS CREDIT PARTNERS L.P.,
      AS JOINT BOOK RUNNER, JOINT LEAD ARRANGER AND SOLE SYNDICATION AGENT

                             CHASE SECURITIES INC.,
                  AS JOINT BOOK RUNNER AND JOINT LEAD ARRANGER

                             BANK OF AMERICA, N.A.,
                     AS CO-DOCUMENTATION AGENT AND ARRANGER

                                 CITIBANK, N.A.,
                     AS CO-DOCUMENTATION AGENT AND ARRANGER

                               BARCLAYS BANK PLC,
                     AS CO-DOCUMENTATION AGENT AND ARRANGER

                                       AND

                            THE CHASE MANHATTAN BANK,
                             AS ADMINISTRATIVE AGENT

                    $1,500,000,000 REVOLVING CREDIT FACILITY

                                  "FACILITY B"

<PAGE>   2

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                         <C>
                                            ARTICLE I
DEFINITIONS..................................................................................2
         SECTION 1.01.  Defined Terms........................................................2
         SECTION 1.02.  Classification of Loans and Borrowings..............................18
         SECTION 1.03.  Terms Generally.....................................................18
         SECTION 1.04.  Accounting Terms; GAAP..............................................18

                                           ARTICLE II
THE CREDITS.................................................................................19
         SECTION 2.01.  Commitments.........................................................19
         SECTION 2.02.  Loans and Borrowings................................................19
         SECTION 2.03.  Requests for Revolving Borrowings...................................20
         SECTION 2.04   Bid Procedure for Competitive Loans.................................20
         SECTION 2.05.  Funding of Borrowings...............................................23
         SECTION 2.06.  Interest Elections..................................................23
         SECTION 2.07.  Termination and Reduction of Commitments............................25
         SECTION 2.08.  Repayment of Loans; Evidence of Debt................................25
         SECTION 2.09.  Prepayment of Loans.................................................26
         SECTION 2.10.  Fees................................................................26
         SECTION 2.11.  Interest............................................................27
         SECTION 2.12.  Alternate Rate of Interest..........................................28
         SECTION 2.13.  Increased Costs.....................................................29
         SECTION 2.14.  Break Funding Payments..............................................30
         SECTION 2.15.  Taxes...............................................................31
         SECTION 2.16.  Payments Generally; Pro Rata Treatment; Sharing of Set-offs.........31
         SECTION 2.17.  Mitigation Obligations; Replacement of Lenders......................33

                                   ARTICLE III
REPRESENTATIONS AND WARRANTIES..............................................................34
         SECTION 3.01.  Corporate Existence and Power; Compliance with Law..................34
         SECTION 3.02.  Corporate Authority.................................................34
         SECTION 3.03.  Enforceability......................................................34
         SECTION 3.04.  Financial Condition.................................................35
         SECTION 3.05.  Litigation..........................................................35
         SECTION 3.06.  ERISA...............................................................35
         SECTION 3.07.  Environmental Matters...............................................35
         SECTION 3.08.  Federal Regulations.................................................36
         SECTION 3.09.  Investment and Holding Company Status...............................36
         SECTION 3.10.  Scheduled Debt......................................................36
</TABLE>

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<TABLE>
<S>                                                                                        <C>
                                           ARTICLE IV

CONDITIONS..................................................................................36
         SECTION 4.01.  Conditions to Third Amended and Restated Effective Date.............36
         SECTION 4.02.  Conditions to Each Borrowing........................................37

                                            ARTICLE V

AFFIRMATIVE COVENANTS.......................................................................38
         SECTION 5.01.  Financial Statements and Other Information..........................38
         SECTION 5.02.  Notices of Material Events..........................................39
         SECTION 5.03.  Existence; Conduct of Business......................................40
         SECTION 5.04.  Compliance with Contractual Obligations.............................40
         SECTION 5.05.  Insurance...........................................................40
         SECTION 5.06.  Compliance with Laws................................................40
         SECTION 5.07.  Use of Proceeds.....................................................40

                                           ARTICLE VI
NEGATIVE COVENANTS..........................................................................41
         SECTION 6.01.  Financial Covenant..................................................41
         SECTION 6.02.  Liens...............................................................41
         SECTION 6.03.  Fundamental Changes.................................................42
         SECTION 6.04.  Restrictive Agreements..............................................43
         SECTION 6.05.  Future Subsidiary Guaranties........................................43

                                           ARTICLE VII

EVENTS OF DEFAULT...........................................................................43

                                          ARTICLE VIII

THE ADMINISTRATIVE AGENT....................................................................45

                                           ARTICLE IX

MISCELLANEOUS...............................................................................48
         SECTION 9.01.  Notices.............................................................48
         SECTION 9.02.  Waivers: Amendments.................................................48
         SECTION 9.03.  Expenses; Indemnity: Damage Waiver..................................49
         SECTION 9.04.  Successors and Assigns..............................................50
         SECTION 9.05.  Survival............................................................53
</TABLE>

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<PAGE>   4

<TABLE>
         <S>                                                                               <C>
         SECTION 9.06.  Counterparts: Integration: Effectiveness............................53
         SECTION 9.07.  Severability........................................................53
         SECTION 9.08.  Right of Setoff.....................................................53
         SECTION 9.09.  Governing Law; Jurisdiction; Consent to Service of Process;
                        Process Agent; Waiver of Immunity...................................54
         SECTION 9.10.  Waiver of Jury Trial................................................54
         SECTION 9.11.  Headings............................................................55
         SECTION 9.12.  Confidentiality.....................................................55
         SECTION 9.13.  Third Amendment & Restatement.......................................55
</TABLE>

                                      iii
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                                       iv
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SCHEDULES:

         Schedule 2.01              Commitments
         Schedule 3.10              Scheduled Debt
         Schedule 6.02              Existing Liens

EXHIBITS:

         Exhibit A                  Form of Assignment and Acceptance
         Exhibit B                  Form of Notes
         Exhibit C                  Form of Opinion of Counsel to the Company

                                      iii
<PAGE>   7

                THIRD AMENDED AND RESTATED "FACILITY B" CREDIT AGREEMENT
461928.08-New York Server 7A EXECUTION THIRD AMENDED AND RESTATED CREDIT
AGREEMENT, dated as of January 23, 2001 (the "Agreement"), among AMERADA HESS
CORPORATION, a Delaware corporation (the "Company"), the LENDERS party hereto
(the "Lenders"), GOLDMAN SACHS CREDIT PARTNERS L.P. ("GSCP"), as Joint Book
Runner, Joint Lead Arranger and Sole Syndication Agent (in such capacity, the
"Syndication Agent") CHASE SECURITIES INC ("CSI"), as Joint Book Runner and
Joint Lead Arranger, BANK OF AMERICA, N.A. ("Bank of America"), as
Co-Documentation Agent and Arranger, CITIBANK, N.A. ("Citibank"), as
Co-Documentation Agent and Arranger, BARCLAYS BANK PLC ("Barclays"), as
Co-Documentation Agent and Arranger (together with Bank of America and Citibank,
the "Documentation Agents") and THE CHASE MANHATTAN BANK ("Chase"), as
Administrative Agent (in such capacity the "Administrative Agent").

                              W I T N E S S E T H:

                WHEREAS, the Company made an offer (the "Offer") to acquire the
whole of the ordinary share capital of LASMO Plc (the "Target") on November 6,
2000;

                WHEREAS, the Company, GSCP as Joint Book Runner, Joint Lead
Arranger and sole Syndication Agent, CSI as Joint Book Runner and Joint Lead
Arranger, Bank of America as Co-Documentation Agent and Arranger, Citibank as
Co-Documentation Agent and Arranger, Barclays as Co-Documentation Agent and
Arranger and Chase as Administrative Agent, entered into a Second Amended and
Restated Credit Agreement dated as of November 29, 2000 (the "Second Amended and
Restated Facility B Credit Agreement");

                WHEREAS, the Company entered into a Credit Agreement, dated as
of November 6, 2000 with the lenders and agents party thereto (the "Initial
Facility B Credit Agreement"), as amended by the Amended and Restated Credit
Agreement, dated as of November 14, 2000 with the lenders and agents party
thereto (the "First Amended and Restated Facility B Credit Agreement" and
together with the Initial Facility B Credit Agreement and the Second Amended and
Restated Facility B Credit Agreement, the "Prior Credit Agreements"). The Prior
Credit Agreements were entered into to provide liquidity support for the
Company's commercial paper program and/or for financing for the cash purchase
price of the Offer and otherwise for general corporate purposes;

                WHEREAS, the Offer made by the Company to acquire the Target has
lapsed, and the Company no longer intends or has any obligation to acquire the
Target or any securities thereof;

                WHEREAS, the Company has requested that GSCP, CSI, Bank of
America, Citibank, Barclays and Chase amend and restate the Second Amended and
Restated Facility B Credit Agreement to (i) acknowledge that the Offer has
lapsed, and therefore, change the use of proceeds of the Loans to solely provide
for liquidity support for the Company's commercial

<PAGE>   8

paper program and otherwise for general corporate purposes and (ii) to add the
Lenders as parties to this Agreement;

                WHEREAS, the Lenders are willing to establish such credit
facilities on and subject to the terms and conditions hereinafter set forth; and

                NOW, THEREFORE, in consideration of the premises and the mutual
agreements herein set forth, the parties hereto agree to amend and restate the
Second Amended and Restated Facility B Credit Agreement in its entirety as
follows:

                                    ARTICLE I

                                   Definitions

                SECTION I.1. Defined Terms. As used in this Agreement, the
following terms have the meanings specified below:

                "ABR", when used in reference to any Loan or Borrowing, means
that such Loan, or the Loans comprising such Borrowing, are bearing interest at
a rate determined by reference to the Alternate Base Rate.

                "Accommodation Guaranty Indebtedness" shall have the meaning
ascribed to it in Article VII(e).

                "Adjusted LIBO Rate" means, with respect to any Eurodollar
Borrowing for any Interest Period, an interest rate per annum (rounded upwards,
if necessary, to the next 1/100 of 1%) equal to (a) the LIBO Rate for such
Interest Period multiplied by (b) the Statutory Reserve Rate.

                "Administrative Agent" has the meaning ascribed to it in the
Preamble.

                "Administrative Questionnaire" means an Administrative
Questionnaire in a form supplied by the Administrative Agent.

                "Affiliate" means, with respect to a specified Person, another
Person that directly, or indirectly through one or more intermediaries, Controls
or is Controlled by or is under common Control with the Person specified.

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

<PAGE>   9

                "Alternate Base Rate" means, for any day, a rate per annum equal
to the greatest of (a) the Prime Rate in effect on such day, (b) the Base CD
Rate in effect on such day plus 1% and (c) the Federal Funds Effective Rate in
effect on such day plus 1/2 of 1%. Any change in the Alternate Base Rate due to
a change in the Prime Rate, the Base CD Rate or the Federal Funds Effective Rate
shall be effective from and including the effective date of such change in the
Prime Rate, the Base CD Rate or the Federal Funds Effective Rate, respectively.

                "Applicable Percentage" means, with respect to any Lender, the
percentage of the total Commitments represented by such Lender's Commitment. If
the Commitments have terminated or expired, the Applicable Percentages shall be
determined based upon the Commitments most recently in effect, giving effect to
any assignments.

                "Applicable Facility Fee Rate" means, for any day, with respect
to Facility Fees payable hereunder, the applicable rate per annum set forth
below based upon reference to the Public Debt Rating as set forth below:

<TABLE>
<CAPTION>
==============================================================================
              Public Debt Rating                     Applicable Facility
                  S&P/Moody's                             Fee Rate
                  -----------                             --------
------------------------------------------------------------------------------
               <S>                                        <C>
                    Level I                                0.100%
                    -------
                  > A- or A3
------------------------------------------------------------------------------
                   Level II                                0.125%
                   --------
                 BBB+ or Baa1
------------------------------------------------------------------------------
                   Level III                               0.150%
                   ---------
                  BBB or Baa2
------------------------------------------------------------------------------
                   Level IV                                0.200%
                   --------
                 BBB- or Baa3
------------------------------------------------------------------------------
                    Level V                                0.375%
                    -------
                < BBB- or Baa3
==============================================================================
</TABLE>

                "Applicable Margin" means, for any day, with respect to any
Eurodollar Revolving Loan, the applicable rate per annum set forth below under
the caption "Eurodollar Spread" based upon reference to the Public Debt Rating
as set forth below:

<TABLE>
<CAPTION>
==============================================================================
              Public Debt Rating
                  S&P/Moody's                         Eurodollar Spread
                  -----------                         -----------------
------------------------------------------------------------------------------
                 <S>                                      <C>
                    Level I                                0.400%
                    -------
                  > A- or A3
                  -
</TABLE>

                                       3
<PAGE>   10

<TABLE>
<CAPTION>
==============================================================================
              Public Debt Rating
                  S&P/Moody's                         Eurodollar Spread
                  -----------                         -----------------
------------------------------------------------------------------------------
                <S>                                      <C>
                   Level II                                0.500%
                   --------
                 BBB+ or Baa1
------------------------------------------------------------------------------
                   Level III                               0.725%
                   ---------
                  BBB or Baa2
------------------------------------------------------------------------------
                   Level IV                                0.800%
                   --------
                  BBB- or Baa3
------------------------------------------------------------------------------
                    Level V                                1.125%
                    -------
                < BBB- or Baa3
==============================================================================
</TABLE>

                "Applicable Utilization Fee Rate" means, for any day, with
respect to Utilization Fees payable hereunder, the applicable rate per annum set
forth below based upon reference to the Public Debt Rating as set forth below:

<TABLE>
<CAPTION>
==============================================================================
              Public Debt Rating                   Applicable Utilization
                  S&P/Moody's                             Fee Rate
                  -----------                             --------
------------------------------------------------------------------------------
                <S>                                     <C>
                    Level I                               0.050%
                    -------
                  > A- or A3
                  -
------------------------------------------------------------------------------
                   Level II                               0.075%
                   --------
                 BBB+ or Baa1
------------------------------------------------------------------------------
                   Level III                              0.125%
                   ---------
                  BBB or Baa2
------------------------------------------------------------------------------
                   Level IV                               0.125%
                   --------
                 BBB- or Baa3
------------------------------------------------------------------------------
                    Level V                               0.250%
                    -------
                < BBB- or Baa3
=============================================================================
</TABLE>

                "Assessment Rate" means, for any day, the annual assessment rate
in effect on such day that is payable by a member of the Bank Insurance Fund
classified as "well-capitalized" and within supervisory subgroup "B" (or a
comparable successor risk classification) within the meaning of 12 C.F.R. Part
327 (or any successor provision) to the Federal Deposit Insurance Corporation
for insurance by such Corporation of time deposits made in dollars at the
offices of such member in the United States; provided that if, as a result of
any change in any law, rule or

                                       4
<PAGE>   11

regulation, it is no longer possible to determine the Assessment Rate as
aforesaid, then the Assessment Rate shall be such annual rate as shall be
determined by the Administrative Agent to be representative of the cost of such
insurance to the Lenders.

                "Assignment and Acceptance" means an assignment and acceptance
entered into by a Lender and an assignee (with the consent of any party whose
consent is required by Section 9.04), and accepted by the Administrative Agent,
in the form of Exhibit A or any other form approved by the Administrative Agent.

                "Availability Period" means the period from and including the
Third Amended and Restated Effective Date to but excluding the earlier of the
Maturity Date and the date of termination of the Commitments.

                "Base CD Rate" means the sum of (a) the Three-Month Secondary CD
Rate multiplied by the Statutory Reserve Rate plus (b) the Assessment Rate.

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

                "Borrowing" means (a) Revolving Loans of the same Type, made,
converted or continued on the same date and, in the case of Eurodollar Loans, as
to which a single Interest Period is in effect or (b) a Competitive Loan or
group of Competitive Loans of the same Type made on the same date and as to
which a single Interest Period is in effect.

                "Borrowing Request" means a request by the Company for Revolving
Loans in accordance with Section 2.03.

                "Business Day" means any day that is not a Saturday, Sunday or
other day on which commercial banks in New York City are authorized or required
by law to remain closed; provided that the term "Business Day" shall also
exclude when used in connection with a Eurodollar Loan, any day on which banks
are not open for dealings in dollar deposits in the London interbank market.

                "Capital Lease" means, with respect to any Person which is the
lessee thereunder, any lease or charter of property, real or personal, which
would, in accordance with GAAP, be recorded as an asset under a capital lease on
a balance sheet of such Person.

                "Capitalized Lease Obligation" means, with respect to any Person
on any date, the amount which would, in accordance with GAAP, be recorded as an
obligation under a Capital Lease on a balance sheet of such Person as lessee
under such Capital Lease as at such date. For all purposes of this Agreement,
Capitalized Lease Obligations shall be deemed to be Debt secured by a Lien.

                                       5
<PAGE>   12

                "Change in Law" means (a) the adoption of any law, rule or
regulation after the date of this Agreement, (b) any change in any law, rule or
regulation or in the interpretation or application thereof by any Governmental
Authority after the date of this Agreement or (c) compliance by any Lender (or,
for purposes of Section 2.13(b), by any lending office of such Lender or by such
Lender's holding company, if any) with any request, guideline or directive
(whether or not having the force of law) of any Governmental Authority made or
issued after the date of this Agreement.

                "Class", when used in reference to any Loan or Borrowing, refers
to whether such Loan, or the Loans comprising such Borrowing, are Revolving
Loans or Competitive Loans.

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

                "Commitment" means, with respect to each Lender, the commitment
of such Lender to make Revolving Loans, as such commitment may be (a) reduced
from time to time pursuant to Section 2.07 and (b) reduced or increased from
time to time pursuant to assignments by or to such Lender pursuant to Section
9.04. The initial amount of each Lender's Commitment is set forth on Schedule
2.01, or in the Assignment and Acceptance pursuant to which such Lender shall
have assumed its Commitment, as applicable.

                "Company" has the meaning ascribed to it in the Preamble.

                "Company Capitalization Ratio" means, on any date, the ratio,
expressed as a percentage, of (i) Total Consolidated Debt of the Company and its
Consolidated Subsidiaries on such date to (ii) Total Capitalization of the
Company and its Consolidated Subsidiaries on such date.

                "Competitive", when used in reference to any Loan or Borrowing,
means that such Loan, or the Loans comprising such Borrowing, are being made in
accordance with Section 2.04.

                "Competitive Bid" means an offer by a Competitive Loan Lender to
make a Competitive Loan in accordance with Section 2.04.

                "Competitive Bid Rate" means, with respect to any Competitive
Bid, the Margin or the Fixed Rate, as applicable, offered by the Competitive
Loan Lender making such Competitive Bid.

                "Competitive Bid Request" means a request by the Company for
Competitive Bids in accordance with Section 2.04.

                                       6
<PAGE>   13

                "Competitive Loan Lenders" means Lenders from time to time
designated as Competitive Loan Lenders by the Company by written notice to the
Administrative Agent (which notice the Administrative Agent shall transmit to
each such Competitive Lender).

                "Consolidated Current Liabilities" means, with respect to any
Person on any date, all amounts which, in conformity with GAAP, would be
classified as current liabilities on a consolidated balance sheet of such Person
and its Consolidated Subsidiaries as at such date.

                "Consolidated Intangibles" means, with respect to any Person on
any date, all assets of such Person and its Consolidated Subsidiaries,
determined on a consolidated basis, that would, in conformity with GAAP, be
classified as intangible assets on a consolidated balance sheet of such Person
and its Consolidated Subsidiaries as at such date, including, without
limitation, unamortized debt discount and expense, unamortized organization and
reorganization expense, costs in excess of the fair market value of acquired
companies, patents, trade or service marks, franchises, trade names, goodwill
and the amount of all write-ups in the book value of assets resulting from any
revaluation thereof (other than revaluations arising out of foreign currency
valuations in conformity with GAAP).

                "Consolidated Net Tangible Assets" means, with respect to any
Person on any date, the amount equal to (a) the amount that would, in conformity
with GAAP, be included as assets on the consolidated balance sheet of such
Person and its Consolidated Subsidiaries as at such date minus (b) the sum of
(i) Consolidated Intangibles of such Person at such date and (ii) Consolidated
Current Liabilities of such Person at such date.

                "Consolidated Subsidiaries" means, with respect to any Person on
any date, all Subsidiaries and other entities whose accounts are consolidated
with the accounts of such Person as of such date in accordance with the
principles of consolidation reflected in the audited financial statements of
such Person as of such date delivered in accordance with Section 5.01.

                "Continuing Directors" has the meaning ascribed to it in Article
VII.

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

                "Control" means the possession, directly or indirectly, of the
power to direct or cause the direction of the management or policies of a
Person, whether through the ability to exercise voting power, by contract or
otherwise. "Controlling" and "Controlled" have meanings correlative thereto.

                "Debt" means with respect to any Person (i) indebtedness for
borrowed money (including, without limitation, indebtedness evidenced by debt
securities); (ii) obligations to pay the deferred purchase price of property or
services, except trade accounts payable in the ordinary

                                       7
<PAGE>   14

course of business; (iii) Capitalized Lease Obligations, in the case of each of
the foregoing clauses (i) through (iii), for which such Person or any of its
Consolidated Subsidiaries shall be liable as primary obligor or under any
Guaranty of any such indebtedness or other such obligations of an entity not
included in such Person's consolidated financial statements and (iv) any such
indebtedness or other such obligations of any entity not included in such
Person's consolidated financial statements secured in any manner by any Lien
upon any assets of such Person or any of its Consolidated Subsidiaries; provided
that for purposes of the computation of any Debt under this Agreement there
shall be no duplication of any item of primary or other indebtedness or other
obligation referred to herein above, whether such item reflects the indebtedness
or other obligation of such Person or any of its Consolidated Subsidiaries or of
any entity not included in such Person's consolidated financial statements; and
provided, further, that when computing Debt of the Company under this Agreement
the first $100,000,000 in the aggregate for which the Company and its
Consolidated Subsidiaries shall be liable under any Guaranty of any such
indebtedness or other such obligations of an entity not included in the
Company's consolidated financial statements shall be excluded from the
computation of Debt of the Company.

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

                "Documentation Agents" shall have the meaning ascribed to it in
the Preamble.

                "dollars" or "$" refers to lawful money of the United States of
America.

                "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 the release of any
materials into the environment.

                "Environmental Liability" means any liability, contingent or
otherwise (including any liability for damages, costs of environmental
remediation, fines, penalties or indemnities), of the Company or any of its
Consolidated Subsidiaries directly or indirectly resulting from or based upon
(a) violation of any Environmental Law, (b) the generation, use, handling,
transportation, storage, treatment or disposal of any Hazardous Materials, (c)
exposure to any Hazardous Materials, (d) the release or threatened release of
any Hazardous Materials into the environment or (e) any contract, agreement or
other consensual arrangement pursuant to which liability is assumed or imposed
with respect to any of the foregoing.

                "ERISA" means the Employee Retirement Income Security Act of
1974, as amended from time to time.

                                       8
<PAGE>   15

                "Eurodollar", when used in reference to any Loan or Borrowing,
means that such Loan, or the Loans comprising such Borrowing, are bearing
interest at a rate determined by reference to the Adjusted LIBO Rate (or, in the
case of a Competitive Loan, the LIBO Rate).

                "Event of Default" has the meaning assigned to such term in
Article VII.

                "Excluded Taxes" means, with respect to the Administrative
Agent, any Lender or any other recipient of any payment to be made by or on
account of any obligation of the Company hereunder, (a) income or franchise
taxes imposed on (or measured by) its net income by the United States of
America, or by the jurisdiction under the laws of which such recipient is
organized or in which its principal office is located or, in the case of any
Lender, in which its applicable lending office is located, (b) any branch
profits taxes imposed by the United States of America or any similar tax imposed
by any other jurisdiction in which the Company is located and (c) in the case of
a Foreign Lender (other than an assignee pursuant to a request by the Company
under Section 2.17(b)) or any foreign branch or Affiliate of a Lender caused by
such Lender to make a Loan under Section 2.02(b), any withholding tax that is
imposed by the United States of America on amounts payable to such Foreign
Lender at the time such Foreign Lender becomes a party to this Agreement or such
foreign branch or Affiliate is caused to make such a Loan or is attributable to
such Foreign Lender's or such foreign branch's or Affiliate's failure or
inability to comply with Section 2.15(e), except to the extent that such Foreign
Lender's assignor (if any) was entitled, at the time of assignment, to receive
additional amounts from the Company with respect to such withholding tax
pursuant to Section 2.15(a).

                "Existing Credit Agreement" means the Credit Agreement, dated as
of May 20, 1997, among the Company, Amerada Hess Limited, Amerada Hess Norge
A/S, Amerada Hess A/S, the other subsidiary borrowers and lenders party thereto,
and The Chase Manhattan Bank, as administrative agent thereunder.

                "Facility A Credit Agreement" means the $1,500,000,000 Third
Amended and Restated Revolving Credit Facility, dated as of the date hereof,
among the Company, the lenders party thereto, Goldman Sachs Credit Partners
L.P., as joint book runner, joint lead arranger and sole syndication agent,
Chase Securities Inc., as joint book runner and joint lead arranger, Bank of
America, N.A., as co-documentation agent and arranger, Citibank, N.A., as
co-documentation agent and arranger, Barclays Bank PLC, as co-documentation
agent and arranger and The Chase Manhattan Bank, as administrative agent.

                "Facility Fee" has meaning ascribed to it in Section 2.10(a).

                "Federal Funds Effective Rate" means, for any day, the weighted
average (rounded upwards, if necessary, to the next 1/100 of 1%) of the rates on
overnight Federal funds transactions with members of the Federal Reserve System
arranged by Federal funds brokers, as published on the next succeeding Business
Day by the Federal Reserve Bank of New York, or, if such rate is not so
published for any day that is a Business Day, the average (rounded upwards, if

                                       9
<PAGE>   16

necessary, to the next 1/100 of 1%) of the quotations for such day for such
transactions received by the Administrative Agent from three Federal funds
brokers of recognized standing selected by it.

                "Financial Officer" means, with respect to the Company, the
chief financial officer, principal accounting officer, treasurer or controller
of the Company.

                "First Amended and Restated Facility B Credit Agreement" has the
meaning ascribed to it in the Preamble.

                "Fixed Rate" means, with respect to any Competitive Loan (other
than a Eurodollar Competitive Loan), the fixed rate of interest per annum
specified by the Lender making such Competitive Loan in its related Competitive
Bid.

                "Fixed Rate Loan" means a Competitive Loan bearing interest at a
Fixed Rate.

                "Foreign Lender" means any Lender that is organized under the
laws of a jurisdiction other than that in which the Company is located. For
purposes of this definition, the United States of America, each State thereof
and the District of Columbia shall be deemed to constitute a single
jurisdiction.

                "GAAP" means for all purposes hereof generally accepted
accounting principles in the United States of America.

                "Governmental Authority" means the government of the United
States of America, any other nation or any political subdivision thereof,
whether state or local, and any agency, authority, instrumentality, regulatory
body, court, central bank or other entity exercising executive, legislative,
judicial, taxing, regulatory or administrative powers or functions of or
pertaining to government.

                "Guaranty" by any Person means any direct or indirect
undertaking to assume, guaranty, endorse, contingently agree to purchase or to
provide funds for the payment of, or otherwise become liable in respect of, any
obligation of any other Person, excluding endorsements for collection or deposit
in the ordinary course of business.

                "Hazardous Materials" means all explosive or radioactive
substances or wastes and all hazardous or toxic substances, wastes or other
pollutants, including petroleum or petroleum distillates, asbestos or asbestos
containing materials, polychlorinated biphenyls, radon gas, infectious or
medical wastes and all other substances or wastes of any nature regulated
pursuant to any Environmental Law.

                "Indemnified Taxes" means Taxes other than Excluded Taxes.

                                       10
<PAGE>   17

                "Indemnitee" shall have the meaning ascribed to it in Section
9.03.

                "Information" shall have the meaning ascribed to it in Section
9.12.

                "Initial Facility B Credit Agreement" has the meaning ascribed
to it in the Preamble.

                "Interest Election Request" means a request by the Company to
convert or continue a Revolving Borrowing in accordance with Section 2.06.

                "Interest Payment Date" means (a) with respect to any ABR Loan,
the last day of each March, June, September and December, (b)with respect to any
Eurodollar Loan, the last day of the Interest Period applicable to the Borrowing
of which such Loan is a part and, in the case of a Eurodollar Borrowing with an
Interest Period of more than three months' duration, each day during such
Interest Period that occurs at intervals of three months' duration after the
first day of such Interest Period, and (c) with respect to any Fixed Rate Loan,
the last day of the Interest Period applicable to the Borrowing of which such
Loan is a part and, in the case of a Fixed Rate Borrowing with an Interest
Period of more than 90 days' duration (unless otherwise specified in the
applicable Competitive Bid Request), each day prior to the last day of such
Interest Period that occurs at intervals of 90 days' duration after the first
day of such Interest Period, and any other dates that are specified in the
applicable Competitive Bid Request as Interest Payment Dates with respect to
such Borrowing.

                "Interest Period" means (a) with respect to any Eurodollar
Borrowing, the period commencing on the date of such Borrowing and ending on the
numerically corresponding day in the calendar month that is 7 days (if generally
available), one, two, three or six months thereafter, as the Company may elect
and (b) with respect to any Fixed Rate Borrowing, the period (which shall not be
less than 7 days or more than 360 days) commencing on the date of such Borrowing
and ending on the date specified in the applicable Competitive Bid Request;
provided, that (i) if any Interest Period would end on a day other than a
Business Day, such Interest Period shall be extended to the next succeeding
Business Day unless, in the case of a Eurodollar Borrowing only, such next
succeeding Business Day would fall in the next calendar month, in which case
such Interest Period shall end on the next preceding Business Day, (ii) any
Interest Period pertaining to a Eurodollar Borrowing that commences on the last
Business Day of a calendar month (or on a day for which there is no numerically
corresponding day in the last calendar month of such Interest Period) shall end
on the last Business Day of the last calendar month of such Interest Period and
(iii) except with respect to any Competitive Loan Lender which otherwise agrees,
any Interest Period that otherwise would extend beyond the Maturity Date
applicable to any Lender shall end on the Maturity Date applicable to such
Lender. For purposes hereof, the date of a Borrowing initially shall be the date
on which such Borrowing is made and, in the case of a Revolving Borrowing,
thereafter shall be the effective date of the most recent conversion or
continuation of such Borrowing.

                                       11
<PAGE>   18

                "Lenders" means the Persons listed on Schedule 2.01 and any
other Person that shall have become a party hereto pursuant to an Assignment and
Acceptance, other than any such Person that ceases to be a party hereto pursuant
to an Assignment and Acceptance.

                "LIBO Rate" means, with respect to each Interest Period
pertaining to a Eurodollar Loan, the rate per annum determined by the
Administrative Agent to be the offered rate for deposits in dollars with a term
comparable to such Interest Period that appears on the Telerate Page at
approximately 11:00 a.m., London time, two Business Days prior to the beginning
of such Interest Period; provided, however, that if at any time for any reason
such offered rate does not appear on the Telerate Page, "LIBO Rate" shall mean,
with respect to each day during each Interest Period pertaining to a Eurodollar
Loan, the rate per annum equal to the average (rounded upward to the nearest
1/100 of 1%) of the respective rates notified to the Administrative Agent by
each of the Reference Bank as the rate at which such Reference Lender is offered
deposits in dollars at or about 11:00 a.m., London time, two Business Days prior
to the beginning of such Interest Period in the London interbank market for
delivery on the first day of such Interest Period for the number of days
comprised therein.

                "Lien" means any mortgage, pledge, security interest,
encumbrance, lien or charge of any kind (including any agreement to give any of
the foregoing), any conditional sale or other title retention agreement, or any
lease in the nature thereof.

                "Loan Documents" means, collectively, this Agreement and all
other agreements, instruments and documents executed in connection wherewith and
therewith, in each case as the same may be amended, restated, modified or
otherwise supplemented from time to time.

                "Loans" means the loans made by the Lenders to the Company
pursuant to this Agreement.

                "Margin" means, with respect to any Competitive Loan bearing
interest at a rate based on the LIBO Rate, the marginal rate of interest, if
any, to be added to or subtracted from the LIBO Rate to determine the rate of
interest applicable to such Loan, as specified by the Lender making such Loan in
its related Competitive Bid.

                "Margin Stock" shall have the meaning provided in Regulation U
of the Board.

                "Material Adverse Effect" means (a) when used in any
representation and warranty or covenant of the Company on and as of the Third
Amended and Restated Effective Date, any event, development or circumstance that
has had or could reasonably be expected to have a material adverse effect on (i)
the business, assets, property or financial condition of the Company and its
Consolidated Subsidiaries taken as a whole, or (ii) the validity or
enforceability of this Agreement or the rights and remedies of the
Administrative Agent and the Lenders hereunder and (b) when used in any
representation and warranty or covenant of the Company on any date after the
Third Amended and Restated Effective Date, any change in the consolidated

                                       12
<PAGE>   19

financial condition or operations of the Company and its Consolidated
Subsidiaries from that set forth in the consolidated balance sheet of the
Company dated as of December 31, 1999 that is likely to materially and adversely
affect the Company's ability to comply with Section 6.01 or to perform its other
obligations to the Lenders under this Agreement.

                "Material Indebtedness" means Debt (other than the Loans) of the
Company in an aggregate principal amount exceeding $10,000,000.

                "Maturity Date" means the fifth year anniversary of the Third
Amendment Effective Date.

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

                "Note" has the meaning ascribed to it in Section 2.08(e).

                "Offer" has the meaning ascribed to it in the Preamble.

                "Other Taxes" means any and all present or future stamp or
documentary taxes or any other excise or property taxes, charges or similar
levies arising from any payment made hereunder or from the execution, delivery
or enforcement of, or otherwise with respect to, this Agreement.

                "Participant" has the meaning ascribed to it in Section 9.04.

                "Permitted Encumbrances" means with respect to the Company:

                (a)     Liens imposed by law for taxes that are not yet due or
        are being contested in good faith by appropriate proceedings and as to
        which appropriate reserves have been set aside in accordance with GAAP;

                (b)     carriers', warehousemen's, mechanics', materialmen's,
        and repairmen's Liens, Liens for crew's wages or salvage (or making
        deposits to release such Liens) and other like Liens imposed by law,
        arising in the ordinary course of business and securing obligations that
        are not overdue by more than 30 days or are being contested in good
        faith by appropriate proceedings and as to which appropriate reserves
        have been set aside in accordance with GAAP;

                (c)     Liens on standard industry terms imposed by charter
        parties or under contracts of affreightment;

                (d)     Liens arising out of judgments or awards against the
        Company or any of its Consolidated Subsidiaries with respect to which
        the Company or such Subsidiary at the time shall currently be
        prosecuting an appeal or proceedings for review and with

                                       13
<PAGE>   20

        respect to which it shall have secured a stay of execution pending such
        appeal or proceedings for review;

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

                (f)     deposits to secure the performance of bids, trade
        contracts, leases, statutory obligations, surety and appeal bonds or
        performance bonds, margin posted to secure payment or performance under
        futures, forwards or Swap Agreements, and other obligations of a like
        nature, in each case in the ordinary course of business;

                (g)     easements, zoning restrictions, rights-of-way and
        similar encumbrances on real property and imperfections of titles
        imposed by law or arising in the ordinary course of business that do not
        secure any monetary obligations and do not materially detract from the
        value of the affected property or interfere with the ordinary conduct of
        business of the Company or any of its Consolidated Subsidiaries;

                (h)     Liens on any oil and/or gas properties or other mineral
        interests of the Company or any of its Consolidated Subsidiaries,
        whether developed or undeveloped, arising (i) as security for the
        Company's or such Subsidiary's costs and expenses incurred by it in
        connection with the exploration, development or operation of such
        properties, in favor of a person who is conducting the exploration,
        development or operation of such properties, or (ii) in connection with
        farmout, dry hole, bottom hole, communitization, unitization, pooling
        and operating agreements and/or other agreements of like general nature
        incident to the acquisition, exploration, development and operation of
        such properties or as required by regulatory agencies having
        jurisdiction in the premises; and

                (i)     overriding royalties, royalties, production payments,
        net profits interests or like interests to be paid out of production
        from oil and/or gas properties or other mineral interests of the Company
        or any of its Consolidated Subsidiaries, or to be paid out of the
        proceeds from the sale of any such production;

provided that the term "Permitted Encumbrances" shall not include any Lien
securing Debt.

                "Person" means any natural person, corporation, limited
liability company, trust, joint venture, association, company, partnership,
Governmental Authority or other entity.

                "Prior Credit Agreements" has the meaning ascribed to it in the
Preamble.

                "Prime Rate" means the rate of interest per annum publicly
announced from time to time by the Reference Bank as its prime rate in effect at
its principal office in New York City;

                                       14
<PAGE>   21

each change in the Prime Rate shall be effective from and including the date
such change is publicly announced as being effective.

                "Public Debt Rating" means, the ratings (whether explicit or, if
not explicit, implied) assigned by S&P and Moody's to Company's senior unsecured
non-credit enhanced long term debt. For purposes of the foregoing, (a) if only
one of S&P and Moody's shall have in effect a Public Debt Rating, the Applicable
Facility Fee Rate, Applicable Margin and the Applicable Utilization Fee Rate
shall be determined by reference to the available rating; (b) if neither S&P nor
Moody's shall have in effect a Public Debt Rating, the Applicable Facility Fee
Rate, Applicable Margin and the Applicable Utilization Fee Rate will be set in
accordance with Level V under the definition of "Applicable Facility Fee Rate",
"Applicable Margin" or "Applicable Utilization Fee Rate", as the case may be;
(c) if the ratings established by S&P and Moody's shall fall within different
levels, the Applicable Facility Fee Rate, the Applicable Margin and the
Applicable Utilization Fee Rate shall be based upon the higher of such ratings,
provided that if the lower of such ratings is more than one level below the
higher of such ratings, the Applicable Facility Fee Rate, Applicable Margin and
the Applicable Utilization Fee Rate shall be determined by reference to the
level that is one level above such lower rating, provided, further, that if
either of the ratings established by S&P or Moody's shall fall within Level V,
the Applicable Facility Fee Rate, the Applicable Margin and the Applicable
Utilization Fee Rate will be set in accordance with Level V under the definition
of "Applicable Facility Fee Rate", "Applicable Margin" or "Applicable
Utilization Fee Rate", as the case may be; (d) if any rating established by S&P
or Moody's shall be changed, such change shall be effective as of the date on
which such change is first announced publicly by the rating agency making such
change; and (e) if S&P or Moody's shall change the basis on which ratings are
established, each reference to the Public Debt Rating announced by S&P or
Moody's, as the case may be, shall refer to the then equivalent rating by S&P or
Moody's, as the case may be.

                "Reference Bank" means The Chase Manhattan Bank, or such other
bank or banks as may from time to time be designated by the Company and approved
by the Administrative Agent.

                "Register" has the meaning ascribed to it in Section 9.04.

                "Related Parties" means, with respect to any specified Person,
such Person's Affiliates and the respective directors, officers, employees,
agents and advisors of such Person and such Person's Affiliates.

                "Required Lenders" means, (a) at any time prior to the
termination of the Commitments pursuant to Article VII, Lenders having
Commitments representing at least 51% of the aggregate Commitments at such time
(provided that, for purposes of declaring the Loans to be due and payable
pursuant to Article VII, the outstanding Competitive Loans of the Lenders shall
be included in their respective Commitments in determining the Required Lenders)
and (b) for all purposes after the termination of the Commitments pursuant to
Article VII, Lenders

                                       15
<PAGE>   22

having outstanding Loans representing at least 51% of the aggregate outstanding
principal amount of Loans.

                "Revolving Credit Exposure" means, with respect to any Lender at
any time, the outstanding principal amount of such Lender's Revolving Loans.

                "Revolving Loan" means a Loan made pursuant to Section 2.03.

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

                "SEC" shall mean the Securities and Exchange Commission.

                "Scheduled Debt" has the meaning ascribed to it in Section 3.10.

                "Significant Subsidiary" shall mean, with respect to any Person
on any date, a Consolidated Subsidiary of such Person that as of such time
satisfies the definition of a "significant subsidiary" contained as of the date
hereof in Regulation S-X of the SEC.

                "Statutory Reserve Rate" means a fraction (expressed as a
decimal), the numerator of which is the number one and the denominator of which
is the number one minus the aggregate of the maximum reserve percentages
(including any marginal, special, emergency or supplemental reserves) expressed
as a decimal established by the Board to which the Administrative Agent is
subject (a) with respect to the Base CD Rate, for new negotiable nonpersonal
time deposits in dollars of over $100,000 with maturities approximately equal to
three months and (b) with respect to the Adjusted LIBO Rate, for eurodollar
funding (currently referred to as "Eurocurrency Liabilities" in Regulation D of
the Board). Such reserve percentages shall include those imposed pursuant to
such Regulation D. Eurodollar Loans shall be deemed to constitute eurocurrency
funding and to be subject to such reserve requirements without benefit of or
credit for proration, exemptions or offsets that may be available from time to
time to any Lender under such Regulation D or any comparable regulation. The
Statutory Reserve Rate shall be adjusted automatically on and as of the
effective date of any change in any reserve percentage.

                "Subsidiary" means, with respect to any Person (the "parent") at
any date, any corporation, limited liability company, partnership, association
or other entity (a) of which securities or other ownership interests
representing more than 50% of the equity or more than 50% of the ordinary voting
power or, in the case of a partnership, more than 50% of the general partnership
interests are, as of such date, owned, controlled or held, or (b) that is, as of
such date, otherwise Controlled, by the parent or one or more Subsidiaries of
the parent or by the parent and one or more Subsidiaries of the parent.

                                       16
<PAGE>   23

                "Swap Agreement" means any interest rate, currency or commodity
swap agreement or other interest rate, currency or commodity price protection
agreement capable of financial settlement only.

                "Swap Payment Obligation" means, with respect to any Person, an
obligation of such Person to pay money, either in respect of a periodic payment
or upon termination, to a counterparty under a Swap Agreement, after giving
effect to any netting arrangements between such Person and such counterparty and
such Person's rights of set-off in respect of such obligation provided for in
such Swap Agreement.

                "Syndication Agent" has the meaning ascribed to it in the
Preamble.

                "Target" has the meaning ascribed to it in the Preamble.

                "Taxes" means any and all present or future taxes, levies,
imposts, duties, deductions, charges or withholdings imposed by any Governmental
Authority.

                "Telerate Page" means the display designated as Page 3750 on the
Dow Jones Markets System (or such other page as may replace such page on such
service for the purpose of displaying the rates at which dollar deposits are
offered by leading banks in the London interbank deposit market).

                "Third Amended and Restated Effective Date" means the date on
which the conditions set forth in Section 4.01 are satisfied.

                "Three-Month Secondary CD Rate" means, for any day, the
secondary market rate for three-month certificates of deposit reported as being
in effect on such day (or, if such day is not a Business Day, the next preceding
Business Day) by the Board through the public information telephone line of the
Federal Reserve Bank of New York (which rate will, under the current practices
of the Board, be published in Federal Reserve Statistical Release H.15(519)
during the week following such day) or, if such rate is not so reported on such
day or such next preceding Business Day, the average of the secondary market
quotations for three-month certificates of deposit of major money center banks
in New York City received at approximately 10:00 a.m., New York City time, on
such day (or, if such day is not a Business Day, on the next preceding Business
Day) by the Administrative Agent from three negotiable certificate of deposit
dealers of recognized standing selected by it.

                "Total Capitalization", of any Person on any date, means the sum
of (i) Total Consolidated Debt of such Person on such date and (ii)
shareholders' equity of such Person on such date, determined on a consolidated
basis in accordance with GAAP.

                                       17
<PAGE>   24

                "Total Consolidated Debt", of any Person on any date, means all
Debt of such Person and its Consolidated Subsidiaries on such date, determined
on a consolidated basis in accordance with GAAP.

                "Total Exposure" means, with respect to any Lender at any time,
the sum of (i) the Revolving Credit Exposure of such Lender and (ii) the
aggregate outstanding principal amount of such Lender's Competitive Loans.

                "Transactions" means each of the execution, delivery and
performance by the Company of this Agreement and the borrowing of Loans
hereunder.

                "Type", when used in reference to any Loan or Borrowing, refers
to whether the rate of interest on such Loan, or on the Loans comprising such
Borrowing, is determined by reference to the Adjusted LIBO Rate, the Alternate
Base Rate or, in the case of a Competitive Loan or Borrowing, the LIBO Rate or a
Fixed Rate.

                "Utilization Fee" has the meaning ascribed to it in Section
2.10(b).

                SECTION I.2. Classification of Loans and Borrowings. For
purposes of this Agreement, Loans may be classified and referred to by Class
(e.g., a "Revolving Loan") or by Type (e.g., a "Eurodollar Loan") or by Class
and Type (e.g., a "Eurodollar Revolving Loan"). Borrowings also may be
classified and referred to by Class (e.g., a "Revolving Borrowing") or by Type
(e.g., a "Eurodollar Borrowing") or by Class and Type (e.g., a "Eurodollar
Revolving Borrowing").

                SECTION I.3. Terms Generally. The definitions of terms herein
shall apply equally to the singular and plural forms of the terms defined.
Whenever the context may require, any pronoun shall include the corresponding
masculine, feminine and neuter forms. The words "include", "includes" and
"including" shall be deemed to be followed by the phrase "without limitation".
The word "will" shall be construed to have the same meaning and effect as the
word "shall". Unless the context requires otherwise (a) any definition of or
reference to any agreement, instrument or other document herein shall be
construed as referring to such agreement, instrument or other document as from
time to time amended, supplemented or otherwise modified (subject to any
restrictions on such amendments, supplements or modifications set forth herein),
(b) any reference herein to any Person shall be construed to include such
Person's permitted successors and assigns, (c) the words "herein", "hereof" and
"hereunder", and words of similar import, shall be construed to refer to this
Agreement in its entirety and not to any particular provision hereof, (d) all
references herein to Articles, Sections, Exhibits and Schedules shall be
construed to refer to Articles and Sections of, and Exhibits and Schedules to,
this Agreement and (e) the words "asset" and "property" shall be construed to
have the same meaning and effect and to refer to any and all tangible and
intangible assets and properties, including cash, securities, accounts and
contract rights.

                                       18
<PAGE>   25

                SECTION I.4. Accounting Terms; GAAP. Except as otherwise
expressly provided herein, all terms of an accounting or financial nature shall
be construed in accordance with GAAP, as in effect from time to time; provided
that, if the Company notifies the Administrative Agent that the Company requests
an amendment to any provision hereof to eliminate the effect of any change
occurring after the date hereof in GAAP or in the application thereof on the
operation of such provision (or if the Administrative Agent notifies the Company
that the Required Lenders request an amendment to any provision hereof for such
purpose), regardless of whether any such notice is given before or after such
change in GAAP or in the application thereof, then such provision shall be
interpreted on the basis of GAAP as in effect and applied immediately before
such change shall have become effective until such notice shall have been
withdrawn or such amendment is rejected or such provision is amended in
accordance herewith.

                                   ARTICLE II

                                   The Credits

                SECTION II.1. Commitments. Subject to the terms and conditions
set forth herein, each Lender agrees to make Revolving Loans to the Company from
time to time during the Availability Period in an aggregate principal amount not
exceeding the amount of such Lender's Commitment; provided, that after giving
effect to each Revolving Credit Loan (a) no Lender's Revolving Credit Exposure
shall exceed such Lender's Commitment, and (b) the sum of the Total Exposures of
all the Lenders shall not exceed the sum of the Commitments of all Lenders.
Within the foregoing limits and subject to the terms and conditions set forth
herein, the Company may borrow, prepay and reborrow Revolving Loans.

                SECTION II.2. Loans and Borrowings. (a) Each Revolving Loan
shall be made as part of a Borrowing consisting of Revolving Loans made by the
Lenders, ratably in accordance with their respective Commitments. Each
Competitive Loan shall be made in accordance with the procedures set forth in
Section 2.04. The failure of any Lender to make any Loan required to be made by
it shall not relieve any other Lender of its obligations hereunder; provided
that the Commitments and Competitive Bids of the Lenders are several and no
Lender shall be responsible for any other Lender's failure to make Loans as
required.

SUBJECT TO SECTION 2.12, (i) EACH REVOLVING BORROWING SHALL BE COMPRISED
ENTIRELY OF ABR LOANS OR EURODOLLAR LOANS AS THE COMPANY MAY REQUEST IN
ACCORDANCE HEREWITH AND SHALL BE IN DOLLARS AND (ii) EACH COMPETITIVE BORROWING
SHALL BE COMPRISED ENTIRELY OF EURODOLLAR LOANS OR FIXED RATE LOANS AS THE
COMPANY MAY REQUEST IN ACCORDANCE HEREWITH AND SHALL BE IN DOLLARS. EACH LENDER
AT ITS OPTION MAY MAKE ANY LOAN BY CAUSING ANY DOMESTIC OR FOREIGN BRANCH OR
AFFILIATE OF SUCH LENDER TO MAKE SUCH LOAN; PROVIDED THAT ANY EXERCISE OF SUCH
OPTION SHALL

                                       19
<PAGE>   26

NOT AFFECT THE OBLIGATION OF THE COMPANY TO REPAY SUCH LOAN IN ACCORDANCE WITH
THE TERMS OF THIS AGREEMENT.

AT THE COMMENCEMENT OF EACH INTEREST PERIOD FOR ANY EURODOLLAR REVOLVING
BORROWING, SUCH BORROWING SHALL BE IN AN AGGREGATE AMOUNT THAT IS AN INTEGRAL
MULTIPLE OF $1,000,000 AND NOT LESS THAN $10,000,000. AT THE TIME THAT EACH ABR
REVOLVING BORROWING IS MADE, SUCH BORROWING SHALL BE IN AN AGGREGATE AMOUNT THAT
IS AN INTEGRAL MULTIPLE OF $1,000,000 AND NOT LESS THAN $10,000,000; PROVIDED
THAT AN ABR REVOLVING BORROWING MAY BE IN AN AGGREGATE AMOUNT THAT IS EQUAL TO
THE ENTIRE UNUSED BALANCE OF THE TOTAL COMMITMENTS. EACH COMPETITIVE BORROWING
SHALL BE IN AN AGGREGATE AMOUNT THAT IS AN INTEGRAL MULTIPLE OF $1,000,000 AND
NOT LESS THAN $10,000,000. BORROWINGS OF MORE THAN ONE TYPE AND CLASS MAY BE
OUTSTANDING AT THE SAME TIME; PROVIDED THAT THERE SHALL NOT AT ANY TIME BE MORE
THAN A TOTAL OF 10 OUTSTANDING EURODOLLAR REVOLVING BORROWINGS.

NOTWITHSTANDING ANY OTHER PROVISION OF THIS AGREEMENT, THE COMPANY SHALL NOT BE
ENTITLED TO REQUEST, OR TO ELECT TO CONVERT OR CONTINUE, ANY BORROWING IF THE
INTEREST PERIOD REQUESTED WITH RESPECT THERETO WOULD END AFTER THE MATURITY
DATE.

                SECTION II.3. Requests for Revolving Borrowings. To request a
Revolving Borrowing, the Company shall notify the Administrative Agent of such
request by telephone (a) in the case of a Eurodollar Borrowing, not later than
11:00 a.m., New York City time, three Business Days before the date of the
proposed Borrowing or (b) in the case of any ABR Borrowing, not later than 11:00
a.m., New York City time, on the Business Day of the proposed Borrowing. Each
such telephonic Borrowing Request shall be irrevocable and shall be confirmed
promptly by hand delivery or telecopy to the Administrative Agent at its office
set forth in Section 9.01 of a written Borrowing Request in a form approved by
the Administrative Agent and signed by the Company. Each such telephonic and
written Borrowing Request shall specify the following information in compliance
with Section 2.02:

THE AGGREGATE AMOUNT OF THE REQUESTED BORROWING;

THE DATE OF SUCH BORROWING, WHICH SHALL BE A BUSINESS DAY;

WHETHER SUCH BORROWING IS TO BE AN ABR BORROWING OR A EURODOLLAR BORROWING;

IN THE CASE OF A EURODOLLAR BORROWING, THE INITIAL INTEREST PERIOD TO BE
APPLICABLE THERETO,

                                       20
<PAGE>   27

WHICH SHALL BE A PERIOD CONTEMPLATED BY THE DEFINITION OF THE TERM "INTEREST
PERIOD"; AND

THE LOCATION AND NUMBER OF THE COMPANY'S ACCOUNT TO WHICH FUNDS ARE TO BE
DISBURSED, WHICH SHALL COMPLY WITH THE REQUIREMENTS OF SECTION 2.05.

If no election as to the Type of Revolving Borrowing is specified, then the
requested Revolving Borrowing shall be an ABR Borrowing. If no Interest Period
is specified with respect to any requested Eurodollar Revolving Borrowing, then
the Company shall be deemed to have selected an Interest Period of one month's
duration. Promptly following receipt of a Borrowing Request in accordance with
this Section, the Administrative Agent shall advise each Lender of the details
thereof and of the amount of such Lender's Loan to be made as part of the
requested Borrowing.

                SECTION II.4 Bid Procedure for Competitive Loans. (a) Subject to
the terms and conditions set forth herein, from time to time during the
Availability Period the Company may request Competitive Bids and may (but shall
not have any obligation to) accept Competitive Bids and borrow Competitive
Loans; provided, that after giving effect to each Competitive Loan the sum of
the Total Exposures of all the Lenders shall not exceed the sum of the
Commitments of all Lenders. To request Competitive Bids, the Company shall
notify the Administrative Agent at its office set forth in Section 9.01 of such
request by telephone, (i) in the case of a Eurodollar Competitive Borrowing, not
later than 11:00 a.m., New York City time, four Business Days before the date of
the proposed Borrowing and (ii) in the case of a Fixed Rate Borrowing, not later
than 10:00 a.m., New York City time, one Business Day before the date of the
proposed Borrowing. Each such telephonic Competitive Bid Request shall be
confirmed promptly by hand delivery or telecopy to the Administrative Agent of a
written Competitive Bid Request in a form approved by the Administrative Agent
and signed by the Company. Each such telephonic and written Competitive Bid
Request shall specify the following information in compliance with Section 2.02:

THE AGGREGATE AMOUNT OF THE REQUESTED BORROWING;

THE DATE OF SUCH BORROWING, WHICH SHALL BE A BUSINESS DAY;

WHETHER SUCH BORROWING IS TO BE A EURODOLLAR BORROWING OR A FIXED RATE
BORROWING;

THE INTEREST PERIOD TO BE APPLICABLE TO SUCH BORROWING, WHICH SHALL BE A PERIOD
CONTEMPLATED BY THE DEFINITION OF THE TERM "INTEREST PERIOD";

                                       21
<PAGE>   28

THE MATURITY DATE OF SUCH BORROWING, WHICH SHALL BE NO LESS THAN SEVEN AND NO
MORE THAN 360 DAYS FROM THE REQUESTED DRAWDOWN DATE OF SUCH BORROWING; AND

THE LOCATION AND NUMBER OF THE COMPANY'S ACCOUNT TO WHICH FUNDS ARE TO BE
DISBURSED, WHICH SHALL COMPLY WITH THE REQUIREMENTS OF SECTION 2.05.

Promptly following receipt of a Competitive Bid Request in accordance with this
Section, the Administrative Agent shall notify the Competitive Loan Lenders of
the details thereof by telecopy, inviting the Competitive Loan Lenders to submit
Competitive Bids.

EACH COMPETITIVE LOAN LENDER MAY (BUT SHALL NOT HAVE ANY OBLIGATION TO) MAKE ONE
OR MORE COMPETITIVE BIDS TO THE COMPANY IN RESPONSE TO A COMPETITIVE BID
REQUEST. EACH COMPETITIVE BID BY A COMPETITIVE LOAN LENDER MUST BE IN A FORM
APPROVED BY THE ADMINISTRATIVE AGENT AND MUST BE RECEIVED BY THE ADMINISTRATIVE
AGENT AT ITS OFFICE SET FORTH IN SECTION 9.01 BY TELECOPY, (i) IN THE CASE OF A
EURODOLLAR COMPETITIVE BORROWING, NOT LATER THAN 9:30 A.M., NEW YORK CITY TIME,
THREE BUSINESS DAYS BEFORE THE DATE OF THE PROPOSED BORROWING AND (ii) IN THE
CASE OF A FIXED RATE BORROWING, NOT LATER THAN 9:30 A.M., NEW YORK CITY TIME, ON
THE PROPOSED DATE OF SUCH COMPETITIVE BORROWING. COMPETITIVE BIDS THAT DO NOT
CONFORM SUBSTANTIALLY TO THE FORM APPROVED BY THE ADMINISTRATIVE AGENT MAY BE
REJECTED BY THE ADMINISTRATIVE AGENT, AND THE ADMINISTRATIVE AGENT SHALL NOTIFY
THE APPLICABLE COMPETITIVE LOAN LENDER OF SUCH REJECTION AS PROMPTLY AS
PRACTICABLE. EACH COMPETITIVE BID SHALL SPECIFY (i) THE PRINCIPAL AMOUNT (WHICH
SHALL BE A MINIMUM OF $5,000,000 AND AN INTEGRAL MULTIPLE OF $1,000,000 AND
WHICH MAY EQUAL THE ENTIRE PRINCIPAL AMOUNT OF THE COMPETITIVE BORROWING
REQUESTED BY THE COMPANY) OF THE COMPETITIVE LOAN OR LOANS THAT THE COMPETITIVE
LOAN LENDER IS WILLING TO MAKE, (ii) THE COMPETITIVE BID RATE OR RATES AT WHICH
THE COMPETITIVE LOAN LENDER IS PREPARED TO MAKE SUCH LOAN OR LOANS (EXPRESSED AS
A PERCENTAGE RATE PER ANNUM IN THE FORM OF A DECIMAL TO NO MORE THAN FOUR
DECIMAL PLACES) AND (iii) THE INTEREST PERIOD APPLICABLE TO EACH SUCH LOAN AND
THE LAST DAY THEREOF.

THE ADMINISTRATIVE AGENT SHALL PROMPTLY NOTIFY THE COMPANY BY TELECOPY OF THE
COMPETITIVE BID RATE AND THE PRINCIPAL AMOUNT SPECIFIED IN EACH COMPETITIVE BID
AND THE IDENTITY OF THE LENDER THAT SHALL HAVE MADE SUCH COMPETITIVE BID.

SUBJECT ONLY TO THE PROVISIONS OF THIS PARAGRAPH, THE COMPANY MAY ACCEPT OR
REJECT ANY COMPETITIVE BID. THE COMPANY SHALL NOTIFY THE ADMINISTRATIVE AGENT BY

                                       22
<PAGE>   29

TELEPHONE, CONFIRMED BY TELECOPY IN A FORM APPROVED BY THE ADMINISTRATIVE AGENT,
WHETHER AND TO WHAT EXTENT IT HAS DECIDED TO ACCEPT OR REJECT EACH COMPETITIVE
BID, (i) IN THE CASE OF A EURODOLLAR COMPETITIVE BORROWING, NOT LATER THAN 10:30
A.M., NEW YORK CITY TIME, THREE BUSINESS DAYS BEFORE THE DATE OF THE PROPOSED
BORROWING AND (ii) IN THE CASE OF A FIXED RATE BORROWING, NOT LATER THAN 10:30
A.M., NEW YORK CITY TIME, ON THE PROPOSED DATE OF SUCH COMPETITIVE BORROWING;
PROVIDED THAT (i) THE FAILURE OF THE COMPANY TO GIVE SUCH NOTICE SHALL BE DEEMED
TO BE A REJECTION OF EACH COMPETITIVE BID, (ii) THE COMPANY SHALL NOT ACCEPT A
COMPETITIVE BID MADE AT A PARTICULAR COMPETITIVE BID RATE IF THE COMPANY REJECTS
A COMPETITIVE BID MADE AT A LOWER COMPETITIVE BID RATE, (iii) THE AGGREGATE
AMOUNT OF THE COMPETITIVE BIDS ACCEPTED BY THE COMPANY SHALL NOT EXCEED THE
AGGREGATE AMOUNT OF THE REQUESTED COMPETITIVE BORROWING SPECIFIED IN THE RELATED
COMPETITIVE BID REQUEST, (iv) TO THE EXTENT NECESSARY TO COMPLY WITH CLAUSE
(iii) OF THIS PROVISO, THE COMPANY MAY ACCEPT COMPETITIVE BIDS AT THE SAME
COMPETITIVE BID RATE IN PART, WHICH ACCEPTANCE, IN THE CASE OF MULTIPLE
COMPETITIVE BIDS AT SUCH COMPETITIVE BID RATE, SHALL BE MADE PRO RATA IN
ACCORDANCE WITH THE AMOUNT OF EACH SUCH COMPETITIVE BID, AND (v) EXCEPT PURSUANT
TO CLAUSE (iv) ABOVE, NO COMPETITIVE BID SHALL BE ACCEPTED FOR A COMPETITIVE
LOAN UNLESS SUCH COMPETITIVE LOAN IS IN A MINIMUM PRINCIPAL AMOUNT OF $5,000,000
AND AN INTEGRAL MULTIPLE OF $1,000,000; PROVIDED FURTHER THAT IF A COMPETITIVE
LOAN MUST BE IN AN AMOUNT LESS THAN $5,000,000 BECAUSE OF THE PROVISIONS OF
CLAUSE (iv) ABOVE, SUCH COMPETITIVE LOAN MAY BE FOR A MINIMUM OF $1,000,000 OR
ANY INTEGRAL MULTIPLE THEREOF, AND IN CALCULATING THE PRO RATA ALLOCATION OF
ACCEPTANCES OF PORTIONS OF MULTIPLE COMPETITIVE BIDS AT A PARTICULAR COMPETITIVE
BID RATE PURSUANT TO CLAUSE (iv) THE AMOUNTS SHALL BE ROUNDED TO INTEGRAL
MULTIPLES OF $1,000,000 IN A MANNER DETERMINED BY THE COMPANY. A NOTICE GIVEN BY
THE COMPANY PURSUANT TO THIS PARAGRAPH SHALL BE IRREVOCABLE.

THE ADMINISTRATIVE AGENT SHALL PROMPTLY NOTIFY EACH BIDDING LENDER BY TELECOPY
WHETHER OR NOT ITS COMPETITIVE BID HAS BEEN ACCEPTED (AND, IF SO, THE AMOUNT AND
COMPETITIVE BID RATE SO ACCEPTED), AND EACH SUCCESSFUL BIDDER WILL THEREUPON
BECOME BOUND, SUBJECT TO THE TERMS AND CONDITIONS HEREOF, TO MAKE THE
COMPETITIVE LOAN IN RESPECT OF WHICH ITS COMPETITIVE BID HAS BEEN ACCEPTED.

IF THE ADMINISTRATIVE AGENT SHALL ELECT TO SUBMIT A COMPETITIVE BID IN ITS
CAPACITY AS A LENDER, IT SHALL SUBMIT SUCH COMPETITIVE BID DIRECTLY TO THE
COMPANY AT LEAST ONE QUARTER OF AN HOUR EARLIER THAN THE TIME BY WHICH THE OTHER
COMPETITIVE LOAN LENDERS ARE REQUIRED TO SUBMIT THEIR COMPETITIVE BIDS TO THE
ADMINISTRATIVE AGENT PURSUANT TO PARAGRAPH (b) OF THIS SECTION.

                                       23
<PAGE>   30

                SECTION II.5. Funding of Borrowings. (a) Each Lender shall make
each Loan to be made by it hereunder on the proposed date thereof by wire
transfer of immediately available funds to the account of the Administrative
Agent most recently designated by it for such purpose by notice to the Lenders;
such transfers shall be made by (x) 12:00 Noon, New York City time in the case
of Borrowings other than ABR Borrowings and (y) 2:00 PM, New York City time in
the case of ABR Borrowings on the date such Loan is made. The Administrative
Agent will make such amounts available to the Company by promptly crediting the
amounts so received, in like funds, to an account of the Company designated by
the Company in the applicable Borrowing Request or Competitive Bid Request.

UNLESS THE ADMINISTRATIVE AGENT SHALL HAVE RECEIVED NOTICE FROM A LENDER PRIOR
TO THE PROPOSED DATE OF ANY 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
ON SUCH DATE IN ACCORDANCE WITH PARAGRAPH (a) OF THIS SECTION AND MAY, IN
RELIANCE UPON SUCH ASSUMPTION, MAKE AVAILABLE TO THE COMPANY A CORRESPONDING
AMOUNT. IN SUCH EVENT, IF A LENDER HAS NOT IN FACT MADE ITS SHARE OF THE
APPLICABLE BORROWING AVAILABLE TO THE ADMINISTRATIVE AGENT, THEN THE APPLICABLE
LENDER AND THE COMPANY SEVERALLY AGREE TO PAY TO THE ADMINISTRATIVE AGENT
FORTHWITH ON DEMAND SUCH CORRESPONDING AMOUNT WITH INTEREST THEREON, FOR EACH
DAY FROM AND INCLUDING THE DATE SUCH AMOUNT IS MADE AVAILABLE TO THE COMPANY TO
BUT EXCLUDING THE DATE OF PAYMENT TO THE ADMINISTRATIVE AGENT, AT (i) IN THE
CASE OF SUCH LENDER, THE FEDERAL FUNDS EFFECTIVE RATE OR (ii) IN THE CASE OF THE
COMPANY, THE INTEREST RATE APPLICABLE TO ABR LOANS. IF SUCH LENDER PAYS SUCH
AMOUNT TO THE ADMINISTRATIVE AGENT, THEN SUCH AMOUNT SHALL CONSTITUTE SUCH
LENDER'S LOAN INCLUDED IN SUCH BORROWING.

                SECTION II.6. Interest Elections. (a) Each Revolving Borrowing
initially shall be of the Type specified in the applicable Borrowing Request
and, in the case of a Eurodollar Revolving Borrowing, shall have an initial
Interest Period as specified in such Borrowing Request. Thereafter, the Company
may elect to convert such Borrowing to a different Type or to continue such
Borrowing and, in the case of a Eurodollar Revolving Borrowing, may elect
Interest Periods therefor, all as provided in this Section. The Company may
elect different options with respect to different portions of the affected
Borrowing, in which case each such portion shall be allocated ratably among the
Lenders holding the Loans comprising such Borrowing, and the Loans comprising
each such portion shall be considered a separate Borrowing. This Section shall
not apply to Competitive Borrowings, which may not be converted or continued.

TO MAKE AN ELECTION PURSUANT TO THIS SECTION, THE COMPANY SHALL NOTIFY THE
ADMINISTRATIVE AGENT OF SUCH ELECTION BY TELEPHONE BY THE TIME THAT A BORROWING

                                       24

<PAGE>   31

REQUEST WOULD BE REQUIRED UNDER SECTION 2.03 IF THE COMPANY WERE REQUESTING A
REVOLVING BORROWING OF THE TYPE RESULTING FROM SUCH ELECTION TO BE MADE ON THE
EFFECTIVE DATE OF SUCH ELECTION. EACH SUCH TELEPHONIC INTEREST ELECTION REQUEST
SHALL BE IRREVOCABLE AND SHALL BE CONFIRMED PROMPTLY BY HAND DELIVERY OR
TELECOPY TO THE ADMINISTRATIVE AGENT OF A WRITTEN INTEREST ELECTION REQUEST IN A
FORM APPROVED BY THE ADMINISTRATIVE AGENT AND SIGNED BY THE COMPANY.

EACH TELEPHONIC AND WRITTEN INTEREST ELECTION REQUEST SHALL SPECIFY THE
FOLLOWING INFORMATION IN COMPLIANCE WITH SECTION 2.02:

THE BORROWING TO WHICH SUCH INTEREST ELECTION REQUEST APPLIES AND, IF DIFFERENT
OPTIONS ARE BEING ELECTED WITH RESPECT TO DIFFERENT PORTIONS THEREOF, THE
PORTIONS THEREOF TO BE ALLOCATED TO EACH RESULTING BORROWING (IN WHICH CASE THE
INFORMATION TO BE SPECIFIED PURSUANT TO CLAUSES (iii) AND (iv) BELOW SHALL BE
SPECIFIED FOR EACH RESULTING BORROWING);

THE EFFECTIVE DATE OF THE ELECTION MADE PURSUANT TO SUCH INTEREST ELECTION
REQUEST, WHICH SHALL BE A BUSINESS DAY;

WHETHER THE RESULTING BORROWING IS TO BE AN ABR BORROWING OR A EURODOLLAR
BORROWING; AND

IF THE RESULTING BORROWING IS A EURODOLLAR BORROWING, THE INTEREST PERIOD TO BE
APPLICABLE THERETO AFTER GIVING EFFECT TO SUCH ELECTION, WHICH SHALL BE A PERIOD
CONTEMPLATED BY THE DEFINITION OF THE TERM "INTEREST PERIOD".

If any such Interest Election Request requests a Eurodollar Borrowing but does
not specify an Interest Period, then the Company shall be deemed to have
selected an Interest Period of one month's duration.

PROMPTLY FOLLOWING RECEIPT OF AN INTEREST ELECTION REQUEST, THE ADMINISTRATIVE
AGENT SHALL ADVISE EACH LENDER OF THE DETAILS THEREOF AND OF SUCH LENDER'S
PORTION OF EACH RESULTING BORROWING.

IF THE COMPANY FAILS TO DELIVER A TIMELY INTEREST ELECTION REQUEST WITH RESPECT
TO A EURODOLLAR REVOLVING BORROWING PRIOR TO THE END OF THE INTEREST PERIOD
APPLICABLE THERETO, THEN, UNLESS SUCH BORROWING IS REPAID AS PROVIDED HEREIN, AT
THE END OF

                                       25
<PAGE>   32

SUCH INTEREST PERIOD SUCH BORROWING SHALL BE CONVERTED TO AN ABR BORROWING.
NOTWITHSTANDING ANY CONTRARY PROVISION HEREOF, IF AN EVENT OF DEFAULT HAS
OCCURRED AND IS CONTINUING AND THE ADMINISTRATIVE AGENT, AT THE REQUEST OF THE
REQUIRED LENDERS, SO NOTIFIES THE COMPANY, THEN, SO LONG AS AN EVENT OF DEFAULT
IS CONTINUING (i) NO OUTSTANDING REVOLVING BORROWING MAY BE CONVERTED TO OR
CONTINUED AS A EURODOLLAR BORROWING AND (ii) UNLESS REPAID, EACH EURODOLLAR
REVOLVING BORROWING SHALL BE CONVERTED TO AN ABR BORROWING AT THE END OF THE
INTEREST PERIOD APPLICABLE THERETO.

                SECTION II.7. Termination and Reduction of Commitments. (a)
Unless previously terminated, the Commitments shall terminate on the Maturity
Date.

THE COMPANY MAY AT ANY TIME TERMINATE, OR FROM TIME TO TIME REDUCE, THE
AGGREGATE AMOUNT OF THE COMMITMENTS; PROVIDED THAT (i) EACH REDUCTION OF THE
COMMITMENTS SHALL BE IN AN AMOUNT THAT IS AN INTEGRAL MULTIPLE OF $10,000,000
AND NOT LESS THAN $50,000,000 AND (ii) THE COMPANY SHALL NOT TERMINATE OR REDUCE
THE COMMITMENTS IF, AFTER GIVING EFFECT TO ANY CONCURRENT PREPAYMENT OF THE
LOANS IN ACCORDANCE WITH SECTION 2.09, THE SUM OF THE TOTAL EXPOSURES OF ALL THE
LENDERS WOULD EXCEED THE TOTAL COMMITMENTS.

THE COMPANY SHALL NOTIFY THE ADMINISTRATIVE AGENT OF ANY ELECTION TO TERMINATE
OR REDUCE THE COMMITMENTS UNDER PARAGRAPH (b) OF THIS SECTION AT LEAST THREE
BUSINESS DAYS PRIOR TO THE EFFECTIVE DATE OF SUCH TERMINATION OR REDUCTION,
SPECIFYING SUCH ELECTION AND THE EFFECTIVE DATE THEREOF. PROMPTLY FOLLOWING
RECEIPT OF ANY NOTICE, THE ADMINISTRATIVE AGENT SHALL ADVISE THE LENDERS OF THE
CONTENTS THEREOF. EACH NOTICE DELIVERED BY THE COMPANY PURSUANT TO THIS SECTION
SHALL BE IRREVOCABLE; PROVIDED THAT A NOTICE OF TERMINATION OF THE COMMITMENTS
DELIVERED BY THE COMPANY MAY STATE THAT SUCH NOTICE IS CONDITIONED UPON THE
EFFECTIVENESS OF OTHER CREDIT FACILITIES, IN WHICH CASE SUCH NOTICE MAY BE
REVOKED BY THE COMPANY (BY NOTICE TO THE ADMINISTRATIVE AGENT ON OR PRIOR TO THE
SPECIFIED EFFECTIVE DATE) IF SUCH CONDITION IS NOT SATISFIED. ANY TERMINATION OR
REDUCTION OF THE COMMITMENTS SHALL BE PERMANENT. EACH REDUCTION OF THE
COMMITMENTS SHALL BE MADE RATABLY AMONG THE LENDERS BASED ON THEIR RESPECTIVE
COMMITMENTS.

                SECTION II.8. Repayment of Loans; Evidence of Debt. (a) The
Company hereby unconditionally promises to pay (i) to the Administrative Agent
for the account of each Lender the then unpaid principal amount of each
Revolving Loan made to the Company on the Maturity Date and (ii) to the
Administrative Agent for the account of each Competitive Loan

                                       26
<PAGE>   33

Lender the then unpaid principal amount of each Competitive Loan made by such
Competitive Loan Lender to the Company on the last day of the Interest Period
applicable to such Loan.

EACH LENDER SHALL MAINTAIN IN ACCORDANCE WITH ITS USUAL PRACTICE AN ACCOUNT OR
ACCOUNTS EVIDENCING THE INDEBTEDNESS OF THE COMPANY TO SUCH LENDER RESULTING
FROM EACH LOAN MADE BY SUCH LENDER TO THE COMPANY, INCLUDING THE AMOUNTS OF
PRINCIPAL AND INTEREST PAYABLE AND PAID TO SUCH LENDER BY THE COMPANY FROM TIME
TO TIME HEREUNDER.

THE ADMINISTRATIVE AGENT SHALL MAINTAIN ACCOUNTS IN WHICH IT SHALL RECORD (i)
THE AMOUNT OF EACH LOAN MADE HEREUNDER, THE CLASS AND TYPE THEREOF AND THE
INTEREST PERIOD APPLICABLE THERETO, (ii) THE AMOUNT OF ANY PRINCIPAL OR INTEREST
DUE AND PAYABLE OR TO BECOME DUE AND PAYABLE FROM THE COMPANY TO EACH LENDER
HEREUNDER AND (iii) THE AMOUNT OF ANY SUM RECEIVED BY THE ADMINISTRATIVE AGENT
HEREUNDER FOR THE ACCOUNT OF THE LENDERS AND EACH LENDER'S SHARE THEREOF.

THE ENTRIES MADE IN THE ACCOUNTS MAINTAINED PURSUANT TO PARAGRAPH (b) OR (c) OF
THIS SECTION SHALL, ABSENT MANIFEST ERROR, BE PRIMA FACIE EVIDENCE OF THE
EXISTENCE AND AMOUNTS OF THE OBLIGATIONS RECORDED THEREIN; PROVIDED THAT THE
FAILURE OF ANY LENDER OR THE ADMINISTRATIVE AGENT TO MAINTAIN SUCH ACCOUNTS OR
ANY ERROR THEREIN SHALL NOT IN ANY MANNER AFFECT THE OBLIGATION OF THE COMPANY
TO REPAY THE LOANS IN ACCORDANCE WITH THE TERMS OF THIS AGREEMENT.

ANY LENDER MAY REQUEST THAT LOANS MADE BY IT BE EVIDENCED BY A PROMISSORY NOTE.
IN SUCH EVENT, THE COMPANY SHALL PREPARE, EXECUTE AND DELIVER TO SUCH LENDER A
NON-NEGOTIABLE PROMISSORY NOTE SUBSTANTIALLY IN THE FORM ATTACHED AS EXHIBIT B
(A "NOTE") PAYABLE TO THE ORDER OF SUCH LENDER (OR, IF REQUESTED BY SUCH LENDER,
TO SUCH LENDER AND ITS PERMITTED REGISTERED ASSIGNS). THEREAFTER, THE LOANS
EVIDENCED BY SUCH NOTE AND INTEREST THEREON SHALL AT ALL TIMES (INCLUDING AFTER
ASSIGNMENT PURSUANT TO SECTION 9.04) BE REPRESENTED BY ONE OR MORE NOTES PAYABLE
TO THE ORDER OF THE PAYEE NAMED THEREIN (OR, IF SUCH NOTE IS A REGISTERED NOTE,
TO SUCH PAYEE AND ITS PERMITTED REGISTERED ASSIGNS).

                SECTION II.9. Prepayment of Loans. (a) The Company shall have
the right at any time and from time to time to prepay any Borrowing made by it
in whole or in part, subject to prior notice in accordance with paragraph (b) of
this Section; provided that the Company shall not have the right to prepay any
Competitive Loan without the prior consent of the Lender thereof.

                                       27
<PAGE>   34

THE COMPANY SHALL NOTIFY THE ADMINISTRATIVE AGENT BY TELEPHONE (CONFIRMED BY
TELECOPY) OF ANY PREPAYMENT HEREUNDER (i) IN THE CASE OF PREPAYMENT OF A
EURODOLLAR REVOLVING BORROWING, NOT LATER THAN 11:00 A.M., NEW YORK CITY TIME,
THREE BUSINESS DAYS BEFORE THE DATE OF PREPAYMENT AND (ii) IN THE CASE OF
PREPAYMENT OF AN ABR REVOLVING BORROWING, NOT LATER THAN 11:00 A.M., NEW YORK
CITY TIME, ONE BUSINESS DAY BEFORE THE DATE OF PREPAYMENT. EACH SUCH NOTICE
SHALL BE IRREVOCABLE AND SHALL SPECIFY THE PREPAYMENT DATE AND THE PRINCIPAL
AMOUNT OF EACH BORROWING OR PORTION THEREOF TO BE PREPAID; PROVIDED THAT, IF A
NOTICE OF PREPAYMENT IS GIVEN IN CONNECTION WITH A CONDITIONAL NOTICE OF
TERMINATION OF THE COMMITMENTS AS CONTEMPLATED BY SECTION 2.07, THEN SUCH NOTICE
OF PREPAYMENT MAY BE REVOKED IF SUCH NOTICE OF TERMINATION IS REVOKED IN
ACCORDANCE WITH SECTION 2.07. PROMPTLY FOLLOWING RECEIPT OF ANY SUCH NOTICE
RELATING TO A REVOLVING BORROWING, THE ADMINISTRATIVE AGENT SHALL ADVISE THE
LENDERS OF THE CONTENTS THEREOF. EACH PARTIAL PREPAYMENT OF ANY REVOLVING
BORROWING SHALL BE IN AN AMOUNT THAT WOULD BE PERMITTED IN THE CASE OF AN
ADVANCE OF A REVOLVING BORROWING OF THE SAME TYPE AS PROVIDED IN SECTION 2.02.
EACH PREPAYMENT OF A REVOLVING BORROWING SHALL BE APPLIED RATABLY TO THE LOANS
INCLUDED IN THE PREPAID BORROWING. PREPAYMENTS SHALL BE ACCOMPANIED BY ACCRUED
INTEREST TO THE EXTENT REQUIRED BY SECTION 2.11.

                SECTION II.10. Fees. (a) The Company agrees to pay to the
Administrative Agent for the account of each Lender a facility fee, (the
"Facility Fee") which shall accrue at the Applicable Facility Fee Rate on the
daily amount of the Commitment of such Lender (whether used or unused) during
the period from and including the date hereof to but excluding the date on which
such Commitment terminates; provided that, if such Lender continues to have any
Revolving Credit Exposure after its Commitment terminates, then such Facility
Fee shall continue to accrue on the daily amount of such Lender's Revolving
Credit Exposure from and including the date on which its Commitment terminates
to but excluding the date on which such Lender ceases to have any Revolving
Credit Exposure. Accrued Facility Fees shall be payable in arrears on the last
day of March, June, September and December of each year and on the date on which
the Commitments terminate, commencing on the first such date to occur after the
date hereof; provided that any Facility Fees accruing after the date on which
the Commitments terminate shall be payable on demand. All Facility Fees shall be
computed on the basis of a year of 360 days and shall be payable for the actual
number of days elapsed (including the first day but excluding the last day).

FOR ANY DAY THAT THE AGGREGATE PRINCIPAL AMOUNT OF THE LOANS OUTSTANDING EXCEEDS
33% OF THE AGGREGATE COMMITMENTS, COMPANY SHALL PAY TO THE ADMINISTRATIVE AGENT
FOR THE ACCOUNT OF EACH LENDER A UTILIZATION FEE (THE "UTILIZATION FEE") EQUAL
TO THE APPLICABLE UTILIZATION FEE RATE TIMES THE AGGREGATE

                                       28
<PAGE>   35

OUTSTANDING REVOLVING LOANS ON SUCH DATE. THE UTILIZATION FEE SHALL ACCRUE, TO
THE EXTENT APPLICABLE, AT ALL TIMES FROM THE THIRD AMENDED AND RESTATED
EFFECTIVE DATE UNTIL THE MATURITY DATE AND SHALL BE PAYABLE IN ARREARS ON THE
LAST DAY OF MARCH, JUNE, SEPTEMBER AND DECEMBER OF EACH YEAR AND ON THE DATE ON
WHICH THE COMMITMENTS TERMINATE, COMMENCING ON THE FIRST SUCH DATE TO OCCUR
AFTER THE DATE HEREOF. ALL UTILIZATION FEES SHALL BE COMPUTED ON THE BASIS OF A
YEAR OF 360 DAYS AND SHALL BE PAYABLE FOR THE ACTUAL NUMBER OF DAYS ELAPSED
(INCLUDING THE FIRST DAY BUT EXCLUDING THE LAST DAY).

THE COMPANY AGREES TO PAY TO THE ADMINISTRATIVE AGENT AND EACH OF THE LENDERS,
FOR THEIR OWN ACCOUNTS, FEES PAYABLE IN THE AMOUNTS AND AT THE TIMES SEPARATELY
AGREED UPON BETWEEN THE COMPANY AND SUCH OTHER PARTIES.

ALL FEES PAYABLE HEREUNDER SHALL BE PAID ON THE DATES DUE, IN IMMEDIATELY
AVAILABLE FUNDS, TO THE ADMINISTRATIVE AGENT (OR TO EACH OF THE LENDERS, IN THE
CASE OF FEES PAYABLE TO IT) FOR DISTRIBUTION, IN THE CASE OF FACILITY FEES
AND/OR UTILIZATION FEES, TO THE LENDERS; PROVIDED, THAT WITH RESPECT TO
ALLOCATING FACILITY FEES, THE ADMINISTRATIVE AGENT WILL TAKE INTO ACCOUNT THE
CHANGES IN THE COMMITMENTS AND ADJUSTMENTS TO PRO RATA SHARES OF THE LENDERS
MADE HEREIN AND IN THE PRIOR CREDIT AGREEMENTS. ABSENT MANIFEST ERROR, FEES PAID
SHALL NOT BE REFUNDABLE UNDER ANY CIRCUMSTANCES.

                SECTION II.11. Interest. (a) The Loans comprising each ABR
Borrowing shall bear interest at a rate per annum equal to the Alternate Base
Rate.

THE LOANS COMPRISING EACH EURODOLLAR BORROWING SHALL BEAR INTEREST AT A RATE PER
ANNUM EQUAL TO (i) IN THE CASE OF A EURODOLLAR REVOLVING LOAN, THE ADJUSTED LIBO
RATE FOR THE INTEREST PERIOD IN EFFECT FOR SUCH BORROWING PLUS THE APPLICABLE
MARGIN OR (ii) IN THE CASE OF A EURODOLLAR COMPETITIVE LOAN, THE LIBO RATE FOR
THE INTEREST PERIOD IN EFFECT FOR SUCH BORROWING PLUS (OR MINUS, AS APPLICABLE)
THE MARGIN APPLICABLE TO SUCH LOAN.

                (b      Each Fixed Rate Loan shall bear interest at a rate per
annum equal to the Fixed Rate applicable to such Loan.

NOTWITHSTANDING THE FOREGOING, IF ANY PRINCIPAL OF OR INTEREST ON ANY LOAN OR
ANY FEE OR OTHER AMOUNT PAYABLE BY THE COMPANY HEREUNDER IS NOT PAID WHEN DUE,
WHETHER AT STATED MATURITY, UPON ACCELERATION OR OTHERWISE, SUCH OVERDUE AMOUNT

                                       29
<PAGE>   36

SHALL BEAR INTEREST, AFTER AS WELL AS BEFORE JUDGMENT, AT A RATE PER ANNUM EQUAL
TO (i) IN THE CASE OF OVERDUE PRINCIPAL OF ANY LOAN, 2% PLUS THE RATE OTHERWISE
APPLICABLE TO SUCH LOAN AS PROVIDED ABOVE OR (ii) IN THE CASE OF ANY OTHER
AMOUNT, 2% PLUS THE RATE APPLICABLE TO ABR LOANS AS PROVIDED ABOVE.

ACCRUED INTEREST ON EACH LOAN SHALL BE PAYABLE IN ARREARS ON EACH INTEREST
PAYMENT DATE FOR SUCH LOAN; PROVIDED THAT (i) INTEREST ACCRUED PURSUANT TO
PARAGRAPH (d) OF THIS SECTION SHALL BE PAYABLE ON DEMAND, (ii) IN THE EVENT OF
ANY REPAYMENT OR PREPAYMENT OF ANY LOAN (OTHER THAN A PREPAYMENT OF AN ABR
REVOLVING LOAN PRIOR TO THE END OF THE AVAILABILITY PERIOD), ACCRUED INTEREST ON
THE PRINCIPAL AMOUNT REPAID OR PREPAID SHALL BE PAYABLE ON THE DATE OF SUCH
REPAYMENT OR PREPAYMENT, (iii) IN THE EVENT OF ANY CONVERSION OF ANY EURODOLLAR
REVOLVING LOAN PRIOR TO THE END OF THE CURRENT INTEREST PERIOD THEREFOR, ACCRUED
INTEREST ON SUCH LOAN SHALL BE PAYABLE ON THE EFFECTIVE DATE OF SUCH CONVERSION
AND (iv) ALL ACCRUED INTEREST SHALL BE PAYABLE UPON TERMINATION OF THE
COMMITMENTS.

ALL INTEREST HEREUNDER SHALL BE COMPUTED ON THE BASIS OF A YEAR OF 360 DAYS,
EXCEPT THAT INTEREST COMPUTED BY REFERENCE TO THE ALTERNATE BASE RATE AT TIMES
WHEN THE ALTERNATE BASE RATE IS BASED ON THE PRIME RATE, SHALL BE COMPUTED ON
THE BASIS OF A YEAR OF 365 DAYS (OR 366 DAYS IN A LEAP YEAR), AND SHALL BE
PAYABLE FOR THE ACTUAL NUMBER OF DAYS ELAPSED (INCLUDING THE FIRST DAY BUT
EXCLUDING THE LAST DAY). THE APPLICABLE ALTERNATE BASE RATE, ADJUSTED LIBO RATE
OR LIBO RATE SHALL BE DETERMINED BY THE ADMINISTRATIVE AGENT, AND SUCH
DETERMINATION SHALL BE CONCLUSIVE ABSENT MANIFEST ERROR.

                SECTION II.12. Alternate Rate of Interest. If prior to the
commencement of any Interest Period for a Eurodollar Borrowing:

                (a      the Administrative Agent determines (which determination
        shall be conclusive absent manifest error) that adequate and reasonable
        means do not exist for ascertaining the Adjusted LIBO Rate or the LIBO
        Rate, as applicable, for such Interest Period; or

                (b      the Administrative Agent is advised by the Required
        Lenders (or, in the case of a Eurodollar Competitive Loan, the Lender
        that is required to make such Loan) that because of a change in
        circumstances affecting the eurodollar market generally the Adjusted
        LIBO Rate or the LIBO Rate, as applicable, for such Interest Period will
        not adequately and fairly reflect the cost to such Lenders (or Lender)
        of making or

                                       30
<PAGE>   37

        maintaining their Loans (or its Loan) included in such Borrowing for
        such Interest Period;

then the Administrative Agent shall give notice thereof to the Company and the
Lenders by telephone or telecopy as promptly as practicable thereafter and,
until the Administrative Agent notifies the Company and the Lenders that the
circumstances giving rise to such notice no longer exist, (i) any Interest
Election Request that requests the conversion of any Revolving Borrowing to, or
continuation of any Revolving Borrowing as, a Eurodollar Borrowing shall be
ineffective, (ii) if any Borrowing Request requests a Eurodollar Revolving
Borrowing, such Borrowing shall be made as an ABR Borrowing and (iii) any
request by the Company for a Eurodollar Competitive Borrowing shall be
ineffective; provided that (A) if the circumstances giving rise to such notice
do not affect all the Lenders, then requests by the Company for Eurodollar
Competitive Borrowings may be made to Lenders that are not affected thereby and
(B) if the circumstances giving rise to such notice affect only one Type of
Borrowings, then the other Type of Borrowings shall be permitted.

                SECTION II.13. Increased Costs. (a) If any Change in Law shall:

IMPOSE, MODIFY OR DEEM APPLICABLE ANY RESERVE, SPECIAL DEPOSIT OR SIMILAR
REQUIREMENT AGAINST ASSETS OF, DEPOSITS WITH OR FOR THE ACCOUNT OF, OR CREDIT
EXTENDED BY, ANY LENDER (EXCEPT ANY SUCH RESERVE REQUIREMENT REFLECTED IN THE
ADJUSTED LIBO RATE); OR

IMPOSE ON ANY LENDER OR THE LONDON INTERBANK MARKET ANY OTHER CONDITION
AFFECTING THIS AGREEMENT OR EURODOLLAR LOANS OR FIXED RATE LOANS MADE BY SUCH
LENDER;

and the result of any of the foregoing shall be to increase the cost to such
Lender of making or maintaining any Eurodollar Loan or Fixed Rate Loan (or of
maintaining its obligation to make any such Loan) or to reduce the amount of any
sum received or receivable by such Lender hereunder (whether of principal,
interest or otherwise), then the Company will pay to such Lender such additional
amount or amounts as will compensate such Lender for such additional costs
incurred or reduction suffered.

IF ANY LENDER DETERMINES THAT ANY CHANGE IN LAW REGARDING CAPITAL REQUIREMENTS
HAS OR WOULD HAVE THE EFFECT OF REDUCING THE RATE OF RETURN ON SUCH LENDER'S
CAPITAL OR ON THE CAPITAL OF SUCH LENDER'S HOLDING COMPANY, IF ANY, AS A
CONSEQUENCE OF THIS AGREEMENT OR THE LOANS MADE BY, SUCH LENDER, TO A LEVEL
BELOW THAT WHICH SUCH LENDER OR SUCH LENDER'S HOLDING COMPANY COULD HAVE
ACHIEVED BUT FOR SUCH CHANGE IN LAW (TAKING INTO CONSIDERATION SUCH LENDER'S
POLICIES AND THE POLICIES OF SUCH LENDER'S HOLDING COMPANY WITH RESPECT TO
CAPITAL ADEQUACY), THEN FROM TIME TO TIME THE COMPANY WILL PAY TO SUCH LENDER

                                       31
<PAGE>   38

SUCH ADDITIONAL AMOUNT OR AMOUNTS AS WILL COMPENSATE SUCH LENDER OR SUCH
LENDER'S HOLDING COMPANY FOR ANY SUCH REDUCTION SUFFERED.

A CERTIFICATE OF A LENDER SETTING FORTH THE AMOUNT OR AMOUNTS NECESSARY TO
COMPENSATE SUCH LENDER OR ITS HOLDING COMPANY, AS THE CASE MAY BE, AS SPECIFIED
IN PARAGRAPH (a) OR (b) OF THIS SECTION SHALL BE DELIVERED TO THE COMPANY AND
SHALL BE CONCLUSIVE ABSENT MANIFEST ERROR. THE COMPANY SHALL PAY SUCH LENDER THE
AMOUNT SHOWN AS DUE ON ANY SUCH CERTIFICATE WITHIN 10 DAYS AFTER RECEIPT
THEREOF.

FAILURE OR DELAY ON THE PART OF ANY LENDER TO DEMAND COMPENSATION PURSUANT TO
THIS SECTION SHALL NOT CONSTITUTE A WAIVER OF SUCH LENDER'S RIGHT TO DEMAND SUCH
COMPENSATION; PROVIDED THAT THE COMPANY SHALL NOT BE REQUIRED TO COMPENSATE A
LENDER PURSUANT TO THIS SECTION FOR ANY INCREASED COSTS OR REDUCTIONS INCURRED
MORE THAN THREE MONTHS PRIOR TO THE DATE THAT SUCH LENDER NOTIFIES THE COMPANY
OF THE CHANGE IN LAW GIVING RISE TO SUCH INCREASED COSTS OR REDUCTIONS AND OF
SUCH LENDER'S INTENTION TO CLAIM COMPENSATION THEREFOR; PROVIDED, FURTHER THAT,
IF THE CHANGE IN LAW GIVING RISE TO SUCH INCREASED COSTS OR REDUCTIONS IS
RETROACTIVE, THEN THE THREE-MONTH PERIOD REFERRED TO ABOVE SHALL BE EXTENDED TO
INCLUDE THE PERIOD OF RETROACTIVE EFFECT THEREOF.

                (b      Notwithstanding the foregoing provisions of this
Section, a Lender shall not be entitled to compensation pursuant to this Section
in respect of any Competitive Loan if the Change in Law that would otherwise
entitle it to such compensation shall have been publicly announced prior to
submission of the Competitive Bid pursuant to which such Loan was made.

                SECTION II.14. Break Funding Payments. In the event of (a) the
payment of any principal of any Eurodollar Loan or Fixed Rate Loan other than on
the last day of an Interest Period applicable thereto (including as a result of
an Event of Default), (b) the conversion of any Eurodollar Loan other than on
the last day of the Interest Period applicable thereto, (c) the failure to
borrow, convert, continue or prepay any Revolving Loan on the date specified in
any notice delivered pursuant hereto (regardless of whether such notice is
permitted to be revocable under Section 2.09(b) and is revoked in accordance
herewith), (d) the failure to borrow any Competitive Loan after accepting the
Competitive Bid to make such Loan, or (e) the assignment of any Eurodollar Loan
or Fixed Rate Loan other than on the last day of the Interest Period applicable
thereto as a result of a request by the Company pursuant to Section 2.17, then,
in any such event, the Company shall compensate each Lender for the loss, cost
and expense attributable to such event. In the case of a Eurodollar Loan, the
loss to any Lender attributable to any such event shall be deemed to include an
amount determined by such Lender to be equal to the excess, if any, of (i) the
amount of interest that such Lender would pay for a deposit equal to

                                       32
<PAGE>   39

the principal amount of such Loan for the period from the date of such payment,
conversion, failure or assignment to the last day of the then current Interest
Period for such Loan (or, in the case of a failure to borrow, convert or
continue, the duration of the Interest Period that would have resulted from such
borrowing, conversion or continuation) if the interest rate payable on such
deposit were equal to the Adjusted LIBO Rate for such Interest Period, over (ii)
the amount of interest that such Lender would earn on such principal amount for
such period if such Lender were to invest such principal amount for such period
at the interest rate that would be bid by such Lender (or an affiliate of such
Lender) for dollar deposits from other banks in the eurodollar market at the
commencement of such period. A certificate of any Lender setting forth any
amount or amounts that such Lender is entitled to receive pursuant to this
Section shall be delivered to the Company and shall be conclusive absent
manifest error. The Company shall pay such Lender the amount shown as due on any
such certificate within 10 days after receipt thereof.

                SECTION II.15. Taxes. (a) Any and all payments by or on account
of any obligation of the Company hereunder shall be made free and clear of and
without deduction for any Indemnified Taxes or Other Taxes; provided that if the
Company shall be required to deduct any Indemnified Taxes or Other Taxes from
such payments, then (i) the sum payable shall be increased as necessary so that
after making all required deductions (including deductions applicable to
additional sums payable under this Section) the Administrative Agent or Lender
(as the case may be) receives an amount equal to the sum it would have received
had no such deductions been made, (ii) the Company shall make such deductions
and (iii) the Company shall pay the full amount deducted to the relevant
Governmental Authority in accordance with applicable law.

IN ADDITION, THE COMPANY SHALL PAY ANY OTHER TAXES TO THE RELEVANT GOVERNMENTAL
AUTHORITY IN ACCORDANCE WITH APPLICABLE LAW.

THE COMPANY SHALL INDEMNIFY THE ADMINISTRATIVE AGENT AND EACH LENDER, WITHIN 10
DAYS AFTER WRITTEN DEMAND THEREFOR, FOR THE FULL AMOUNT OF ANY INDEMNIFIED TAXES
OR OTHER TAXES (INCLUDING INDEMNIFIED TAXES OR OTHER TAXES IMPOSED OR ASSERTED
ON OR ATTRIBUTABLE TO AMOUNTS PAYABLE UNDER THIS SECTION) PAID BY THE
ADMINISTRATIVE AGENT OR SUCH LENDER, AS THE CASE MAY BE, AND ANY PENALTIES,
INTEREST AND REASONABLE EXPENSES ARISING THEREFROM OR WITH RESPECT THERETO,
WHETHER OR NOT SUCH INDEMNIFIED TAXES OR OTHER TAXES WERE CORRECTLY OR LEGALLY
IMPOSED OR ASSERTED BY THE RELEVANT GOVERNMENTAL AUTHORITY. A CERTIFICATE AS TO
THE AMOUNT OF SUCH PAYMENT OR LIABILITY DELIVERED TO THE COMPANY BY A LENDER, OR
BY THE ADMINISTRATIVE AGENT ON ITS OWN BEHALF OR ON BEHALF OF A LENDER, SHALL BE
CONCLUSIVE ABSENT MANIFEST ERROR.

                                       33
<PAGE>   40

AS SOON AS PRACTICABLE AFTER ANY PAYMENT OF INDEMNIFIED TAXES OR OTHER TAXES BY
THE COMPANY TO A GOVERNMENTAL AUTHORITY, THE COMPANY SHALL DELIVER TO THE
ADMINISTRATIVE AGENT THE ORIGINAL OR A CERTIFIED COPY OF A RECEIPT ISSUED BY
SUCH GOVERNMENTAL AUTHORITY EVIDENCING SUCH PAYMENT, A COPY OF THE RETURN
REPORTING SUCH PAYMENT OR OTHER EVIDENCE OF SUCH PAYMENT REASONABLY SATISFACTORY
TO THE ADMINISTRATIVE AGENT.

ANY FOREIGN LENDER THAT IS ENTITLED TO AN EXEMPTION FROM OR REDUCTION OF
WITHHOLDING TAX UNDER THE LAW OF THE JURISDICTION IN WHICH THE COMPANY IS
LOCATED, OR ANY TREATY TO WHICH SUCH JURISDICTION IS A PARTY, WITH RESPECT TO
PAYMENTS UNDER THIS AGREEMENT SHALL, UPON REQUEST OF THE COMPANY, DELIVER TO THE
COMPANY (WITH A COPY TO THE ADMINISTRATIVE AGENT), AT THE TIME OR TIMES
PRESCRIBED BY APPLICABLE LAW OR REASONABLY REQUESTED BY THE COMPANY, SUCH
PROPERLY COMPLETED AND EXECUTED DOCUMENTATION PRESCRIBED BY APPLICABLE LAW AS
WILL PERMIT SUCH PAYMENTS TO BE MADE WITHOUT WITHHOLDING OR AT A REDUCED RATE.

                SECTION II.16. Payments Generally; Pro Rata Treatment; Sharing
of Set-offs. (a) The Company shall make each payment required to be made by it
hereunder (whether of principal, interest or fees, or under Section 2.13, 2.14
or 2.15, or otherwise) prior to 12:00 Noon, New York City time, on the date when
due in immediately available funds, without set-off or counterclaim. Any amounts
received after such time on any date may, in the discretion of the
Administrative Agent, be deemed to have been received on the next succeeding
Business Day for purposes of calculating interest thereon. All such payments
shall be made to the Administrative Agent at its offices at One Chase Manhattan
Plaza, 8th Floor, New York, New York 10081, except that payments pursuant to
Sections 2.13, 2.14, 2.15 and 9.03 shall be made directly to the Persons
entitled thereto. The Administrative Agent shall distribute any such payments
received by it for the account of any other Person to the appropriate recipient
promptly following receipt thereof. If any payment hereunder shall be due on a
day that is not a Business Day, the date for payment shall be extended to the
next succeeding Business Day, and, in the case of any payment accruing interest,
interest thereon shall be payable for the period of such extension. All payments
hereunder shall be made in dollars.

IF AT ANY TIME INSUFFICIENT FUNDS ARE RECEIVED BY AND AVAILABLE TO THE
ADMINISTRATIVE AGENT TO PAY FULLY ALL AMOUNTS OF PRINCIPAL, INTEREST AND FEES
THEN DUE HEREUNDER, SUCH FUNDS SHALL BE APPLIED (i) FIRST, TO PAY INTEREST AND
FEES THEN DUE HEREUNDER, RATABLY AMONG THE PARTIES ENTITLED THERETO IN
ACCORDANCE WITH THE AMOUNTS OF INTEREST AND FEES THEN DUE TO SUCH PARTIES, AND
(ii) SECOND, TO PAY PRINCIPAL THEN DUE HEREUNDER, RATABLY AMONG THE PARTIES
ENTITLED THERETO IN ACCORDANCE WITH THE AMOUNTS OF PRINCIPAL THEN DUE TO SUCH
PARTIES.

                                       34
<PAGE>   41

IF ANY LENDER SHALL, BY EXERCISING ANY RIGHT OF SET-OFF OR COUNTERCLAIM OR
OTHERWISE, OBTAIN PAYMENT IN RESPECT OF ANY PRINCIPAL OF OR INTEREST ON ANY OF
ITS REVOLVING LOANS RESULTING IN SUCH LENDER RECEIVING PAYMENT OF A GREATER
PROPORTION OF THE AGGREGATE AMOUNT OF ITS REVOLVING LOANS AND ACCRUED INTEREST
THEREON THAN THE PROPORTION RECEIVED BY ANY OTHER LENDER, THEN THE LENDER
RECEIVING SUCH GREATER PROPORTION SHALL PURCHASE (FOR CASH AT FACE VALUE)
PARTICIPATIONS IN THE REVOLVING LOANS OF OTHER LENDERS TO THE EXTENT NECESSARY
SO THAT THE BENEFIT OF ALL SUCH PAYMENTS SHALL BE SHARED BY THE LENDERS RATABLY
IN ACCORDANCE WITH THE AGGREGATE AMOUNT OF PRINCIPAL OF AND ACCRUED INTEREST ON
THEIR RESPECTIVE REVOLVING LOANS; PROVIDED THAT (i) IF ANY SUCH PARTICIPATIONS
ARE PURCHASED AND ALL OR ANY PORTION OF THE PAYMENT GIVING RISE THERETO IS
RECOVERED, SUCH PARTICIPATIONS SHALL BE RESCINDED AND THE PURCHASE PRICE
RESTORED TO THE EXTENT OF SUCH RECOVERY, WITHOUT INTEREST, AND (ii) THE
PROVISIONS OF THIS PARAGRAPH SHALL NOT BE CONSTRUED TO APPLY TO ANY PAYMENT MADE
BY THE COMPANY PURSUANT TO AND IN ACCORDANCE WITH THE EXPRESS TERMS OF THIS
AGREEMENT OR ANY PAYMENT OBTAINED BY A LENDER AS CONSIDERATION FOR THE
ASSIGNMENT OF OR SALE OF A PARTICIPATION IN ANY OF ITS LOANS TO ANY ASSIGNEE OR
PARTICIPANT, OTHER THAN TO THE COMPANY OR ANY SUBSIDIARY OR AFFILIATE THEREOF
(AS TO WHICH THE PROVISIONS OF THIS PARAGRAPH SHALL APPLY). THE COMPANY CONSENTS
TO THE FOREGOING AND AGREES, TO THE EXTENT IT MAY EFFECTIVELY DO SO UNDER
APPLICABLE LAW, THAT ANY LENDER ACQUIRING A PARTICIPATION PURSUANT TO THE
FOREGOING ARRANGEMENTS MAY EXERCISE AGAINST THE COMPANY RIGHTS OF SET-OFF AND
COUNTERCLAIM WITH RESPECT TO SUCH PARTICIPATION AS FULLY AS IF SUCH LENDER WERE
A DIRECT CREDITOR OF THE COMPANY IN THE AMOUNT OF SUCH PARTICIPATION.

UNLESS THE ADMINISTRATIVE AGENT SHALL HAVE RECEIVED NOTICE FROM THE COMPANY
PRIOR TO THE DATE ON WHICH ANY PAYMENT IS DUE TO THE ADMINISTRATIVE AGENT FOR
THE ACCOUNT OF THE LENDERS HEREUNDER THAT THE COMPANY WILL NOT MAKE SUCH
PAYMENT, THE ADMINISTRATIVE AGENT MAY ASSUME THAT THE COMPANY HAS MADE SUCH
PAYMENT ON SUCH DATE IN ACCORDANCE HEREWITH AND MAY, IN RELIANCE UPON SUCH
ASSUMPTION, DISTRIBUTE TO THE LENDERS THE AMOUNT DUE. IN SUCH EVENT, IF THE
COMPANY HAS NOT IN FACT MADE SUCH PAYMENT, THEN EACH OF THE LENDERS SEVERALLY
AGREES TO REPAY TO THE ADMINISTRATIVE AGENT FORTHWITH ON DEMAND THE AMOUNT SO
DISTRIBUTED TO SUCH LENDER WITH INTEREST THEREON, FOR EACH DAY FROM AND
INCLUDING THE DATE SUCH AMOUNT IS DISTRIBUTED TO IT TO BUT EXCLUDING THE DATE OF
PAYMENT TO THE ADMINISTRATIVE AGENT, AT THE FEDERAL FUNDS EFFECTIVE RATE.

IF ANY LENDER SHALL FAIL TO MAKE ANY PAYMENT REQUIRED TO BE MADE BY IT PURSUANT
TO SECTION 2.05(b) OR 2.16(d), THEN THE ADMINISTRATIVE AGENT MAY, IN ITS
DISCRETION (NOTWITHSTANDING ANY CONTRARY PROVISION HEREOF), APPLY ANY AMOUNTS
THEREAFTER RECEIVED BY THE ADMINISTRATIVE AGENT FOR THE ACCOUNT OF SUCH LENDER
TO SATISFY

                                       35
<PAGE>   42

SUCH LENDER'S OBLIGATIONS UNDER SUCH SECTIONS UNTIL ALL SUCH UNSATISFIED
OBLIGATIONS ARE FULLY PAID.

                SECTION II.17. Mitigation Obligations; Replacement of Lenders.
(a) If any Lender requests compensation under Section 2.13, or if the Company is
required to pay any additional amount to any Lender or any Governmental
Authority for the account of any Lender pursuant to Section 2.15, then such
Lender shall use reasonable efforts to designate a different lending office for
funding or booking its Loans hereunder or to assign its rights and obligations
hereunder to another of its offices, branches or affiliates, if, in the judgment
of such Lender, such designation or assignment (i) would eliminate or reduce
amounts payable pursuant to Section 2.13 or 2.15, as the case may be, in the
future and (ii) would not subject such Lender to any unreimbursed cost or
expense and would not otherwise be disadvantageous to such Lender. The Company
hereby agrees to pay all reasonable costs and expenses incurred by any Lender in
connection with any such designation or assignment.

IF ANY LENDER REQUESTS COMPENSATION UNDER SECTION 2.13, OR IF THE COMPANY IS
REQUIRED TO PAY ANY ADDITIONAL AMOUNT TO ANY LENDER OR ANY GOVERNMENTAL
AUTHORITY FOR THE ACCOUNT OF ANY LENDER PURSUANT TO SECTION 2.15, OR IF ANY
LENDER DEFAULTS IN ITS OBLIGATION TO FUND LOANS HEREUNDER, THEN THE COMPANY MAY,
AT ITS SOLE EXPENSE AND EFFORT, UPON NOTICE TO SUCH LENDER AND THE
ADMINISTRATIVE AGENT, REQUIRE SUCH LENDER TO ASSIGN AND DELEGATE, WITHOUT
RECOURSE (IN ACCORDANCE WITH AND SUBJECT TO THE RESTRICTIONS CONTAINED IN
SECTION 9.04), ALL ITS INTERESTS, RIGHTS AND OBLIGATIONS UNDER THIS AGREEMENT
(OTHER THAN ANY OUTSTANDING COMPETITIVE LOANS HELD BY IT) TO AN ASSIGNEE THAT
SHALL ASSUME SUCH OBLIGATIONS (WHICH ASSIGNEE MAY BE ANOTHER LENDER, IF A LENDER
ACCEPTS SUCH ASSIGNMENT); PROVIDED THAT (i) THE COMPANY SHALL HAVE RECEIVED THE
PRIOR WRITTEN CONSENT OF THE ADMINISTRATIVE AGENT, WHICH CONSENT SHALL NOT
UNREASONABLY BE WITHHELD, (ii) SUCH LENDER SHALL HAVE RECEIVED PAYMENT OF AN
AMOUNT EQUAL TO THE OUTSTANDING PRINCIPAL OF ITS LOANS (OTHER THAN COMPETITIVE
LOANS), ACCRUED INTEREST THEREON, ACCRUED FEES AND ALL OTHER AMOUNTS PAYABLE TO
IT HEREUNDER, FROM THE ASSIGNEE (TO THE EXTENT OF SUCH OUTSTANDING PRINCIPAL AND
ACCRUED INTEREST AND FEES) OR THE COMPANY (IN THE CASE OF ALL OTHER AMOUNTS) AND
(iii) IN THE CASE OF ANY SUCH ASSIGNMENT RESULTING FROM A CLAIM FOR COMPENSATION
UNDER SECTION 2.13 OR PAYMENTS REQUIRED TO BE MADE PURSUANT TO SECTION 2.15,
SUCH ASSIGNMENT WILL RESULT IN A REDUCTION IN SUCH COMPENSATION OR PAYMENTS. A
LENDER SHALL NOT BE REQUIRED TO MAKE ANY SUCH ASSIGNMENT AND DELEGATION IF,
PRIOR THERETO, AS A RESULT OF A WAIVER BY SUCH LENDER OR OTHERWISE, THE
CIRCUMSTANCES ENTITLING THE COMPANY TO REQUIRE SUCH ASSIGNMENT AND DELEGATION
CEASE TO APPLY.

                                       36
<PAGE>   43

                                   ARTICLE III

                         Representations and Warranties

                The Company represents and warrants to each of the Lenders as
follows (which representations and warranties will be deemed made by the Company
on the date of each Borrowing by the Company hereunder, the date of conversion
or continuation of any Interest Period with respect to any Loan pursuant to
Section 2.06 and each Interest Payment Date in respect of any ABR Loan):

                SECTION III.1. Corporate Existence and Power; Compliance with
Law. The Company is a corporation duly organized, validly existing and in good
standing under the laws of its jurisdiction of incorporation. The Company is in
compliance with all laws, regulations and orders of any Governmental Authority
applicable to it or its property and all indentures, agreements and other
instruments binding upon it or its property, except where the failure to do so,
individually or in the aggregate, does not constitute a Material Adverse Effect.

                SECTION III.2. Corporate Authority. The execution, delivery and
performance by the Company of this Agreement and each Note executed by the
Company have been duly authorized by all necessary corporate action and are
within the Company's corporate power, do not require the approval of the
shareholders of the Company, and will not violate any provision of law or of its
certificate of incorporation or other constitutive document or by-laws, or
result in the breach of or constitute a default or require any consent under, or
result in the creation of any lien, charge or encumbrance upon any property or
assets of the Company pursuant to, any indenture or other agreement or
instrument to which the Company is a party or by which the Company or its
property may be bound or affected. The execution, delivery and performance by
the Company of this Agreement and each Note executed by the Company do not
require any license, consent or approval of or advance notice to or advance
filing with any governmental agency or regulatory authority or any other third
party, or if required, any such license, consent or approval shall have been
obtained and any such notice or filing shall have been made.

                SECTION III.3. Enforceability. This Agreement is, and each Note
when delivered by the Company hereunder will be, duly executed and delivered by
the Company and does or will constitute the legal, valid and binding obligations
of the Company enforceable against the Company in accordance with their
respective terms except as enforceability may be limited by general principles
of equity and bankruptcy, insolvency, reorganization or similar laws affecting
creditors' rights generally and by moratorium laws from time to time in effect.

                SECTION III.4. Financial Condition. The audited consolidated
financial statements of the Company for the fiscal year ended December 31, 1999,
reported on by Ernst & Young, LLP, heretofore furnished to the Lenders fairly
present in all material respects the consolidated financial condition of the
Company and its Consolidated Subsidiaries as at the date thereof and the results
of their operations for the period covered thereby. The unaudited interim

                                       37
<PAGE>   44

consolidated financial statements of the Company for the quarterly period ended
September 30, 2000, heretofore furnished to the Lenders fairly present in all
material respects the consolidated financial condition of the Company and its
Consolidated Subsidiaries as at the date thereof and the results of their
operations for the period covered thereby (subject to normal year-end audit
adjustments). Said financial statements were prepared in accordance with GAAP.
Since December 31, 1999, there has been no Material Adverse Effect.

                SECTION III.5. Litigation. There are no suits or proceedings
(including proceedings by or before any arbitrator, government commission,
board, bureau or other administrative agency) pending or, to the knowledge of
the Company, threatened against or affecting the Company or any of its
Consolidated Subsidiaries that constitute a Material Adverse Effect.

                SECTION III.6. ERISA. The Company has fulfilled its obligations
under the minimum funding standards of ERISA and the Code with respect to each
employee benefit plan of the Company subject to such standards and is in
compliance in all material respects with the applicable provisions of ERISA, and
has not incurred any liability to the PBGC or any employee benefit plan of the
Company under Title IV of ERISA other than a liability to the PBGC for premiums
under Section 4007 of ERISA.

                SECTION III.7. Environmental Matters. Each of the Company and
its Consolidated Subsidiaries has obtained all permits, licenses and other
authorizations which are required under all Environmental Laws, including laws
relating to emissions, discharges, releases or threatened releases of
pollutants, contaminants, 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, chemical, or industrial,
toxic or hazardous substances or wastes, except to the extent failure to have
any such permit, license or authorization does not constitute a Material Adverse
Effect. The Company and its Consolidated Subsidiaries are in compliance with all
terms and conditions of all required permits, licenses and authorizations, and
are also in compliance with all other limitations, restrictions, conditions,
standards, prohibitions, requirements, obligations, schedules and timetables,
contained in those laws or contained in any regulation, code, plan, order,
decree, judgment, injunction, notice or demand letter issued, entered,
promulgated or approved thereunder, except to the extent failure to comply does
not constitute a Material Adverse Effect.

                SECTION III.8. Federal Regulations. No part of the proceeds of
any Loans will be used for any purpose which violates the provisions of the
Regulations of the Board including, without limitation, Regulations T, U and X
of the Board as in effect from time to time.

                SECTION III.9. Investment and Holding Company Status. Neither
the Company nor any of its Consolidated Subsidiaries is (a) an "investment
company" as defined in, or subject

                                       38
<PAGE>   45

to regulation under, the Investment Company Act of 1940 or (b) a "holding
company" as defined in, or subject to regulation under, the Public Utility
Holding Company Act of 1935.

                SECTION III.10. Scheduled Debt. Schedule 3.10 sets out all of
the Debt for borrowed money of the Consolidated Subsidiaries of Company as of
the date hereof which the Company, having made all due inquiry is, at the date
hereof, aware (the "Scheduled Debt").

                                   ARTICLE IV

                                   Conditions

                SECTION IV.1. Conditions to Third Amended and Restated Effective
Date. The obligations of the Lenders to make Revolving Loans to the Company
shall not become effective until the date on which each of the following
conditions are satisfied (or waived in accordance with Section 9.02):

THE SYNDICATION AGENT AND THE ADMINISTRATIVE AGENT SHALL HAVE RECEIVED AT LEAST
ONE EXECUTED COUNTERPART OF THIS AGREEMENT AND THE FACILITY A CREDIT AGREEMENT
FROM THE COMPANY, THE AGENTS AND THE LENDERS, TOGETHER WITH ARRANGEMENTS
SATISFACTORY TO THE SYNDICATION AGENT AND THE ADMINISTRATIVE AGENT FOR
ADDITIONAL EXECUTED COUNTERPARTS, SUFFICIENT IN NUMBER FOR DISTRIBUTION TO THE
LENDERS AND THE COMPANY, TOGETHER WITH ALL EXHIBITS THERETO;

THE SYNDICATION AGENT AND THE ADMINISTRATIVE AGENT SHALL HAVE RECEIVED A
FAVORABLE WRITTEN OPINION (ADDRESSED TO THE SYNDICATION AGENT, THE
ADMINISTRATIVE AGENT AND THE LENDERS AND DATED THE THIRD AMENDED AND RESTATED
EFFECTIVE DATE) OF J. BARCLAY COLLINS, GENERAL COUNSEL TO THE COMPANY,
SUBSTANTIALLY IN THE FORM OF EXHIBIT C;

THE SYNDICATION AGENT AND THE ADMINISTRATIVE AGENT SHALL HAVE RECEIVED DOCUMENTS
AND CERTIFICATES RELATING TO THE ORGANIZATION, EXISTENCE AND GOOD STANDING OF
THE COMPANY, THE AUTHORIZATION OF THE TRANSACTIONS, THE INCUMBENCY OF THE
PERSONS EXECUTING THIS AGREEMENT ON BEHALF OF THE COMPANY AND ANY OTHER LEGAL
MATTERS RELATING TO THE COMPANY, THIS AGREEMENT OR THE TRANSACTIONS AS
REASONABLY REQUESTED BY THE LENDERS, ALL IN FORM AND SUBSTANCE SATISFACTORY TO
THE SYNDICATION AGENT AND THE ADMINISTRATIVE AGENT;

THE SYNDICATION AGENT AND THE ADMINISTRATIVE AGENT SHALL HAVE RECEIVED A

                                       39
<PAGE>   46

CERTIFICATE, DATED THE THIRD AMENDED AND RESTATED EFFECTIVE DATE AND SIGNED BY
THE PRESIDENT, A VICE PRESIDENT OR A FINANCIAL OFFICER OF THE COMPANY,
CONFIRMING COMPLIANCE WITH THE CONDITIONS SET FORTH IN PARAGRAPHS (a) AND (b) OF
SECTION 4.02;

THE SYNDICATION AGENT AND THE ADMINISTRATIVE AGENT AND EACH LENDER (AND ITS
AFFILIATES) SHALL HAVE RECEIVED ALL FEES AND OTHER AMOUNTS DUE AND PAYABLE ON OR
PRIOR TO THE THIRD AMENDED AND RESTATED EFFECTIVE DATE, INCLUDING, TO THE EXTENT
INVOICED, REIMBURSEMENT OR PAYMENT OF ALL OUT-OF-POCKET EXPENSES REQUIRED TO BE
REIMBURSED OR PAID BY THE COMPANY HEREUNDER;

THE SYNDICATION AGENT AND THE ADMINISTRATIVE AGENT SHALL HAVE RECEIVED EVIDENCE
FROM THE ADMINISTRATIVE AGENT UNDER THE EXISTING CREDIT AGREEMENT THAT ALL LOANS
OUTSTANDING UNDER THE EXISTING CREDIT AGREEMENT SHALL HAVE BEEN REPAID, ALL
COMMITMENTS THEREUNDER SHALL HAVE BEEN TERMINATED AND THE EXISTING CREDIT
AGREEMENT ITSELF SHALL HAVE BEEN CANCELLED AND COMPANY SHALL DELIVER A
TERMINATION NOTICE TO THE ADMINISTRATIVE AGENT UNDER THE EXISTING CREDIT
AGREEMENT AT LEAST THREE BUSINESS DAYS PRIOR TO THE THIRD AMENDED AND RESTATED
EFFECTIVE DATE NOTIFYING THE ADMINISTRATIVE AGENT THEREUNDER THAT THE EXISTING
CREDIT AGREEMENT SHALL BE TERMINATED UPON THE THIRD AMENDED AND RESTATED
EFFECTIVE DATE;

THE OFFER SHALL HAVE IRREVOCABLY LAPSED AND THE COMPANY SHALL HAVE NO OBLIGATION
TO ACQUIRE THE TARGET OR ANY SECURITIES THEREOF;

THE LENDERS SHALL HAVE RECEIVED COPIES OF AND SHALL BE REASONABLY SATISFIED, IN
FORM AND SUBSTANCE, WITH THE FINANCIAL STATEMENTS REFERRED TO IN SECTION 3.04,
CERTIFIED BY A FINANCIAL OFFICER OF THE COMPANY; AND

                                       40
<PAGE>   47

THE SYNDICATION AGENT AND THE ADMINISTRATIVE AGENT SHALL HAVE RECEIVED, WITH A
COPY FOR EACH LENDER, A CERTIFICATE OF AN OFFICER OF THE COMPANY ACCEPTABLE TO
THE SYNDICATION AGENT AND THE ADMINISTRATIVE AGENT STATING THAT ALL CONSENTS,
AUTHORIZATIONS, NOTICES AND FILINGS REQUIRED OR ADVISABLE IN CONNECTION WITH
THIS AGREEMENT AND THE TRANSACTIONS ARE IN FULL FORCE AND EFFECT, EXCEPT FOR
SUCH CONSENTS, AUTHORIZATIONS, NOTICES AND FILINGS WHICH IF NOT IN FULL FORCE OR
EFFECT WOULD NOT REASONABLY BE EXPECTED TO HAVE A MATERIAL ADVERSE EFFECT, AND
THE SYNDICATION AGENT AND THE ADMINISTRATIVE AGENT SHALL HAVE RECEIVED EVIDENCE
THEREOF REASONABLY SATISFACTORY TO IT.

  CONDITIONS TO EACH BORROWING. The obligation of each Lender to make a Loan to
the Company on the occasion of any Borrowing is subject to the satisfaction of
the following conditions:

THE REPRESENTATIONS AND WARRANTIES OF THE COMPANY SET FORTH IN THIS AGREEMENT
SHALL BE TRUE AND CORRECT ON AND AS OF THE DATE OF SUCH BORROWING.

AT THE TIME OF AND IMMEDIATELY AFTER GIVING EFFECT TO SUCH BORROWING, NO DEFAULT
SHALL HAVE OCCURRED AND BE CONTINUING.

Each Borrowing by the Company shall be deemed to constitute a representation and
warranty by the Company on the date thereof as to the matters specified in
paragraphs (a) and (b) of this Section.

                                    ARTICLE V

                              Affirmative Covenants

                Until the Commitments have expired or been terminated and the
principal of and interest on each Loan and all fees payable hereunder shall have
been paid in full, the Company covenants and agrees with the Lenders that:

                SECTION V.1. Financial Statements and Other Information. The
Company will furnish to each Lender:

AS SOON AS AVAILABLE AND IN ANY EVENT WITHIN 100 DAYS AFTER THE END OF EACH OF
ITS FISCAL YEARS, A COPY OF THE COMPANY'S FORM 10-K FOR SUCH FISCAL YEAR FILED
WITH THE

                                       41
<PAGE>   48

SECURITIES AND EXCHANGE COMMISSION CONTAINING A CONSOLIDATED BALANCE SHEET AS AT
THE CLOSE OF SUCH FISCAL YEAR, STATEMENTS OF CONSOLIDATED INCOME AND RETAINED
EARNINGS AND A STATEMENT OF CONSOLIDATED CASH FLOWS FOR SUCH YEAR, SETTING FORTH
IN COMPARATIVE FORM THE CORRESPONDING FIGURES FOR THE PRECEDING FISCAL YEAR AND
CERTIFIED BY ERNST & YOUNG, LLP, OR OTHER INDEPENDENT PUBLIC ACCOUNTANTS
SELECTED BY THE COMPANY AND SATISFACTORY TO THE LENDERS (AND, IN THE EVENT ANY
SUCH FINANCIAL STATEMENTS SHALL NO LONGER BE REQUIRED TO BE INCLUDED IN THE
COMPANY'S FORM 10-K, THE COMPANY SHALL NEVERTHELESS FURNISH SUCH FINANCIAL
STATEMENTS);

AS SOON AS AVAILABLE AND IN ANY EVENT WITHIN 60 DAYS AFTER THE END OF EACH OF
THE FIRST THREE QUARTERS OF EACH OF ITS FISCAL YEARS, A COPY OF THE COMPANY'S
FORM 10-Q FOR EACH SUCH QUARTER FILED WITH THE SECURITIES AND EXCHANGE
COMMISSION CONTAINING A CONSOLIDATED BALANCE SHEET AS AT THE END OF SUCH
QUARTER, A STATEMENT OF CONSOLIDATED INCOME AND A STATEMENT OF CONSOLIDATED CASH
FLOWS FOR SUCH PERIOD, PREPARED ON A BASIS CONSISTENT WITH THE CORRESPONDING
PERIOD OF THE PRECEDING FISCAL YEAR, EXCEPT AS DISCLOSED IN SAID FINANCIAL
STATEMENTS OR OTHERWISE DISCLOSED TO THE LENDERS IN WRITING, AND CERTIFIED BY A
FINANCIAL OFFICER OF THE COMPANY, SUBJECT HOWEVER, TO YEAR-END AND AUDIT
ADJUSTMENTS (AND, IN THE EVENT SUCH FINANCIAL STATEMENTS OF THE COMPANY SHALL NO
LONGER BE REQUIRED TO BE INCLUDED IN FORM 10-Q, THE COMPANY SHALL NEVERTHELESS
FURNISH SUCH FINANCIAL STATEMENTS);

WITHIN 120 DAYS AFTER THE END OF EACH FISCAL YEAR OF THE COMPANY, A CERTIFICATE
OF THE INDEPENDENT PUBLIC ACCOUNTANTS REFERRED TO IN PARAGRAPH (a) ABOVE AS TO
WHETHER, DURING THE COURSE OF THEIR EXAMINATION OF THE COMPANY'S FINANCIAL
STATEMENTS, THEY OBTAINED ANY KNOWLEDGE OF ANY DEFAULT, INSOFAR AS SUCH DEFAULT
INVOLVES ACCOUNTING MATTERS;

WITHIN 120 DAYS AFTER THE END OF EACH FISCAL YEAR OF THE COMPANY AND WITHIN 60
DAYS AFTER THE END OF EACH OF THE FIRST THREE QUARTERS OF EACH FISCAL YEAR OF
THE COMPANY, A STATEMENT, SIGNED BY A FINANCIAL OFFICER OF THE COMPANY, SETTING
FORTH THE COMPUTATIONS OF THE COMPANY CAPITALIZATION RATIO AS OF THE END OF EACH
SUCH FISCAL YEAR AND EACH SUCH QUARTER;

PROMPTLY AFTER THE SENDING OR FILING THEREOF, COPIES OF ALL PROXY STATEMENTS,
FINANCIAL STATEMENTS AND REGULAR OR SPECIAL REPORTS (OTHER THAN REPORTS ON FORM
10-K AND FORM 10-Q BUT INCLUDING THOSE ON FORM 8-K) AND REGISTRATION STATEMENTS

                                       42
<PAGE>   49

UNDER THE SECURITIES ACT OF 1933, AS AMENDED (OTHER THAN THOSE ON FORM S-8 OR
ANY SUCCESSOR FORM RELATING TO THE REGISTRATION OF SECURITIES OFFERED PURSUANT
TO ANY EMPLOYEE BENEFIT PLAN) WHICH THE COMPANY SENDS TO ITS STOCKHOLDERS OR
FILES WITH THE SECURITIES AND EXCHANGE COMMISSION (OR ANY SUCCESSOR GOVERNMENTAL
AUTHORITY);

AS SOON AS AVAILABLE AND IN ANY EVENT WITHIN 120 DAYS AFTER THE END OF EACH
FISCAL YEAR OF THE COMPANY, A CONSOLIDATING BALANCE SHEET OF THE COMPANY AND ITS
CONSOLIDATED SUBSIDIARIES AS AT THE CLOSE OF SUCH FISCAL YEAR AND CONSOLIDATING
STATEMENTS OF INCOME AND RETAINED EARNINGS OF THE COMPANY AND ITS CONSOLIDATED
SUBSIDIARIES FOR SUCH YEAR; AND

FROM TIME TO TIME SUCH FURTHER INFORMATION REGARDING THE BUSINESS, AFFAIRS AND
FINANCIAL CONDITION OF THE COMPANY AND ITS SUBSIDIARIES AS THE LENDERS SHALL
REASONABLY REQUEST.

                SECTION V.2. Notices of Material Events. The Company will
furnish to the Administrative Agent and each Lender prompt written notice of the
following:

THE OCCURRENCE OF ANY DEFAULT;

THE FILING OR COMMENCEMENT OF ANY ACTION, SUIT OR PROCEEDING BY OR BEFORE ANY
ARBITRATOR OR GOVERNMENTAL AUTHORITY AGAINST OR AFFECTING THE COMPANY OR ANY
AFFILIATE THEREOF THAT CONSTITUTES A MATERIAL ADVERSE EFFECT; AND

ANY OTHER DEVELOPMENT THAT CONSTITUTES A MATERIAL ADVERSE EFFECT.

Each notice delivered under this Section shall be accompanied by a statement of
a Financial Officer or other executive officer of the Company setting forth the
details of the event or development requiring such notice and any action taken
or proposed to be taken with respect thereto.

                SECTION V.3. Existence; Conduct of Business. The Company will,
and will cause each of its Consolidated Subsidiaries to, do or cause to be done
all things necessary to preserve, renew and keep in full force and effect its
legal existence and the rights, licenses, permits, privileges and franchises
necessary to the conduct of its business, except, in the case of the legal
existence of any such Consolidated Subsidiary or any such right, license,
permit,

                                       43
<PAGE>   50

privilege or franchise, where the failure to so preserve, renew and keep in full
force and effect does not constitute a Material Adverse Effect; provided that
the foregoing shall not prohibit any merger, consolidation, liquidation or
dissolution permitted under Section 6.03.

                SECTION V.4. Compliance with Contractual Obligations. The
Company will, and will cause each of its Consolidated Subsidiaries to comply
with all its Contractual Obligations except to the extent that failure to comply
therewith does not, in the aggregate, constitute a Material Adverse Effect.

                SECTION V.5. Insurance. The Company will, and will cause each of
its Consolidated Subsidiaries to, maintain in full force and effect such
policies of insurance in such amounts issued by insurers of recognized
responsibility covering the properties and operations of the Company and its
Consolidated Subsidiaries as is customarily maintained by corporations engaged
in the same or similar business in the localities where the properties and
operations are located, including but not limited to insurance in connection
with the disposal, handling, storage, transportation or generation of hazardous
materials; provided, however, that nothing shall prevent the Company or any of
its Consolidated Subsidiaries from effecting workers' compensation or similar
insurance in respect of operations in any state or other jurisdiction through an
insurance fund operated by such state or jurisdiction or from maintaining a
system or systems of self-insurance covering its properties or operations as
provided above to the extent that such self-insurance is customarily effected by
corporations engaged in the same or similar businesses similarly situated and is
otherwise prudent in the circumstances.

                SECTION V.6. Compliance with Laws. The Company will, and will
cause each of its Consolidated Subsidiaries to, comply with all laws, rules,
regulations and orders of any Governmental Authority applicable to it or its
property, except where the failure to do so, individually or in the aggregate,
does not constitute a Material Adverse Effect.

                SECTION V.7. Use of Proceeds. The proceeds of the Loans will be
applied by the Company:

TO REPAY AMOUNTS OUTSTANDING UNDER THE EXISTING CREDIT AGREEMENT AND TO
REFINANCE AMOUNTS OUTSTANDING FROM TIME TO TIME UNDER THE COMPANY'S COMMERCIAL
PAPER PROGRAM; AND

TO MEET PART OF THE WORKING CAPITAL AND GENERAL CORPORATE REQUIREMENTS OF THE
COMPANY AND ITS SUBSIDIARIES.

No part of the proceeds of any Loan will be used, whether directly or
indirectly, for any purpose that entails a violation of any of the Regulations
of the Board, including Regulations T, U and X of the Board as in effect from
time to time.

                                       44
<PAGE>   51

                                   ARTICLE VI

                               Negative Covenants

                The Company covenants and agrees with the Lenders that until the
Commitments have expired or terminated and the principal of and interest on each
Loan and all fees payable hereunder by the Company have been paid in full:

FINANCIAL COVENANT. The Company shall not permit the Company Capitalization
Ratio to exceed 62.5%.

LIENS. The Company will not, and will not permit any of its Consolidated
Subsidiaries to, create, incur, assume or permit to exist any Lien on any
property or asset now owned or hereafter acquired by it, or assign or sell any
income or revenues (including accounts receivable) or rights in respect of any
thereof, except:

PERMITTED ENCUMBRANCES;

ANY LIEN ON ANY PROPERTY OR ASSET OF THE COMPANY OR ANY OF ITS CONSOLIDATED
SUBSIDIARIES EXISTING ON THE DATE HEREOF AND SET FORTH IN SCHEDULE 6.02;
PROVIDED THAT (i) SUCH LIEN SHALL NOT APPLY TO ANY OTHER PROPERTY OR ASSET OF
THE COMPANY OR ANY OF ITS CONSOLIDATED SUBSIDIARIES AND (ii) SUCH LIEN SHALL
SECURE ONLY THOSE OBLIGATIONS WHICH IT SECURES ON THE DATE HEREOF AND
EXTENSIONS, RENEWALS AND REPLACEMENTS THEREOF THAT DO NOT INCREASE THE
OUTSTANDING PRINCIPAL AMOUNT THEREOF;

ANY LIEN EXISTING ON ANY PROPERTY OR ASSET PRIOR TO THE ACQUISITION THEREOF BY
THE COMPANY OR ANY OF ITS CONSOLIDATED SUBSIDIARIES OR EXISTING ON ANY PROPERTY
OR ASSET OF ANY PERSON THAT BECOMES A CONSOLIDATED SUBSIDIARY AFTER THE DATE
HEREOF PRIOR TO THE TIME SUCH PERSON BECOMES A CONSOLIDATED SUBSIDIARY; PROVIDED
THAT (i) SUCH LIEN IS NOT CREATED IN CONTEMPLATION OF OR IN CONNECTION WITH SUCH
ACQUISITION OR SUCH PERSON BECOMING A CONSOLIDATED SUBSIDIARY, (ii) SUCH LIEN
SHALL NOT APPLY TO ANY OTHER PROPERTY OR ASSETS OF THE COMPANY OR ANY OF ITS
CONSOLIDATED SUBSIDIARIES AND (iii) SUCH LIEN SHALL SECURE ONLY THOSE
OBLIGATIONS WHICH IT SECURES ON THE DATE OF SUCH ACQUISITION OR THE DATE SUCH
PERSON BECOMES A CONSOLIDATED SUBSIDIARY, AND EXTENSIONS, RENEWALS AND
REPLACEMENTS

                                       45
<PAGE>   52

THEREOF THAT DO NOT INCREASE THE OUTSTANDING PRINCIPAL AMOUNT THEREOF;

LIENS SECURING OR CONSISTING OF DEBT OF THE COMPANY AND ITS CONSOLIDATED
SUBSIDIARIES INCURRED TO FINANCE THE ACQUISITION OF FIXED OR CAPITAL ASSETS;
PROVIDED THAT (i) SUCH LIENS SHALL BE CREATED SUBSTANTIALLY SIMULTANEOUSLY WITH
SUCH ACQUISITION, (ii) SUCH LIENS SECURING SUCH DEBT DO NOT AT ANY TIME ENCUMBER
ANY PROPERTY OTHER THAN THE PROPERTY FINANCED BY SUCH DEBT AND (iii) THE
PRINCIPAL AMOUNT OF DEBT SECURED BY ANY SUCH LIEN SHALL AT NO TIME EXCEED 100%
OF THE ORIGINAL PURCHASE PRICE OF SUCH ASSETS (IN THE CASE OF A PURCHASE) OR
FAIR VALUE OF SUCH PROPERTY AT THE TIME IT WAS ACQUIRED (IN ALL OTHER CASES);

LIENS TO SECURE DEBT OF THE COMPANY AND ITS CONSOLIDATED SUBSIDIARIES NOT
OTHERWISE PERMITTED BY THIS SECTION 6.02, TO THE EXTENT THAT THE AGGREGATE DEBT
SECURED THEREBY DOES NOT EXCEED 15% OF THE CONSOLIDATED NET TANGIBLE ASSETS OF
THE COMPANY AND ITS CONSOLIDATED SUBSIDIARIES;

LIENS ON ASSETS OF ANY CONSOLIDATED SUBSIDIARY OF THE COMPANY SECURING
INDEBTEDNESS OWED TO THE COMPANY OR ANY OTHER CONSOLIDATED SUBSIDIARY OF THE
COMPANY.

                SECTION VI.8. Fundamental Changes. (a) The Company will not
consolidate with or merge into any other Person, or permit any Person to merge
or consolidate into it, or make any sale or other disposition of all or
substantially all of its assets to, or acquire substantially all of the assets
of, any other Person, or liquidate or dissolve unless:

THE SURVIVOR OF ANY SUCH MERGER OR CONSOLIDATION OR THE PURCHASER OR ACQUIROR OF
SUCH ASSETS SHALL BE A CORPORATION INCORPORATED UNDER THE LAWS OF ONE OF THE
STATES OF THE UNITED STATES AND NOT MORE THAN 25% OF THE VOTING STOCK (ASSUMING
THE CONVERSION OF ALL CONVERTIBLE SECURITIES AND EXERCISE OF ALL OPTIONS, RIGHTS
OR WARRANTS) OF SUCH SURVIVOR OR SUCH PURCHASER SHALL BE OWNED BY SUCH OTHER
PERSON OR ITS OWNERS AND SHAREHOLDERS;

SUCH SURVIVOR OR SUCH PURCHASER (IF NOT THE COMPANY) SHALL EXPRESSLY ASSUME THE
OBLIGATIONS OF THE COMPANY UNDER THIS AGREEMENT PURSUANT TO DOCUMENTATION IN
FORM AND SUBSTANCE SATISFACTORY TO THE ADMINISTRATIVE AGENT; AND

AT THE TIME THEREOF AND IMMEDIATELY AFTER GIVING EFFECT THERETO NO DEFAULT SHALL
HAVE OCCURRED AND BE CONTINUING AND THE COMPANY SHALL HAVE FURNISHED THE
ADMINISTRATIVE

                                       46
<PAGE>   53

AGENT WITH EVIDENCE OF COMPLIANCE WITH THE PROVISIONS OF THIS SECTION 6.03.

THE COMPANY WILL NOT, AND WILL NOT PERMIT ANY OF ITS CONSOLIDATED SUBSIDIARIES
TO, ENGAGE TO ANY MATERIAL EXTENT IN ANY BUSINESS OTHER THAN ENERGY-RELATED
BUSINESSES.

RESTRICTIVE AGREEMENTS. The Company will not, and will not permit any of its
Consolidated Subsidiaries to, directly or indirectly, enter into, incur or
permit to exist any agreement or other arrangement that prohibits, restricts or
imposes any condition upon the ability of any Significant Subsidiary to pay
dividends or other distributions with respect to any shares of its capital stock
or to make or repay loans or advances to the Company.

FUTURE SUBSIDIARY GUARANTIES. The Company will not permit any Subsidiary to
Guaranty any other Debt of the Company unless such Subsidiary simultaneously
executes a guaranty agreement in a form and substance reasonably satisfactory to
the Administrative Agent for the Guaranty of the payment of the obligations
hereunder; provided, however, that the Company shall not be obligated to provide
any such Guaranty if the provision of such Guaranty would result in an adverse
Tax consequence to the Company or its Subsidiaries.

                                   ARTICLE VII

                                Events of Default

                If any of the following events ("Events of Default") shall
occur:

THE COMPANY SHALL BE IN DEFAULT IN THE PAYMENT WHEN DUE OF ANY PRINCIPAL OF ANY
LOAN ON THE MATURITY DATE THEREOF;

THE COMPANY SHALL BE IN DEFAULT FOR FIVE DAYS IN THE PAYMENT WHEN DUE OF ANY
INTEREST ON ANY LOAN OR ANY OTHER AMOUNT (OTHER THAN PRINCIPAL) DUE HEREUNDER;

ANY REPRESENTATION OR WARRANTY MADE OR DEEMED MADE BY THE COMPANY IN ARTICLE III
OR IN ANY CERTIFICATE OF THE COMPANY FURNISHED TO THE SYNDICATION AGENT AND THE

                                       47
<PAGE>   54

ADMINISTRATIVE AGENT OR ANY LENDER HEREUNDER SHALL PROVE TO HAVE BEEN INCORRECT,
WHEN MADE OR DEEMED MADE, IN ANY MATERIAL RESPECT; PROVIDED, HOWEVER, THAT NO
SUCH REPRESENTATION OR WARRANTY CONTAINED IN SECTION 3.04 OR 3.05 SHALL BE
DEEMED TO HAVE BEEN INCORRECT WHEN MADE BY THE COMPANY BY REASON OF ANY FACTS OR
CIRCUMSTANCES DISCLOSED IN ANY FINANCIAL STATEMENTS OR REPORTS FURNISHED UNDER
SECTION 5.01 AND RECEIVED BY THE LENDERS NOT LATER THAN 45 DAYS PRIOR TO, OR
OTHERWISE SPECIFICALLY DISCLOSED IN WRITING TO THE LENDERS AT LEAST 15 DAYS
PRIOR TO, THE DATE SUCH REPRESENTATION AND WARRANTY IS MADE OR DEEMED TO BE MADE
IN CONNECTION WITH THE ENTERING INTO OF THIS AGREEMENT OR IN CONNECTION WITH THE
MAKING OF A LOAN TO THE COMPANY OR THE OCCASION OF ANY BORROWING AS CONTEMPLATED
IN SECTION 4.02;

THE COMPANY SHALL BE IN DEFAULT IN THE PERFORMANCE OF (i) THE COVENANTS
CONTAINED IN SECTIONS 5.07, 6.01, 6.02, 6.03, 6.04 AND 6.05 FOR FIVE CONSECUTIVE
DAYS AFTER SUCH DEFAULT SHALL HAVE BECOME KNOWN TO THE COMPANY, OR (ii) ANY
OTHER COVENANT, CONDITION OR AGREEMENT CONTAINED IN THIS AGREEMENT FOR 30
CONSECUTIVE DAYS AFTER SUCH DEFAULT SHALL HAVE BECOME KNOWN TO THE COMPANY;

ANY OBLIGATION OF THE COMPANY IN RESPECT OF ANY MATERIAL INDEBTEDNESS NOW OR
HEREAFTER OUTSTANDING SHALL BECOME DUE BY ITS TERMS WHETHER BY ACCELERATION OR
OTHERWISE AND SHALL NOT BE PAID, EXTENDED OR REFUNDED OR ANY DEFAULT OR EVENT OF
DEFAULT SHALL OCCUR IN RESPECT OF ANY SUCH OBLIGATION AND SHALL CONTINUE FOR A
PERIOD OF TIME SUFFICIENT TO CAUSE OR PERMIT THE ACCELERATION OF MATURITY
THEREOF, OR THE COMPANY SHALL FAIL TO PAY ANY SWAP PAYMENT OBLIGATION OF THE
COMPANY IN EXCESS OF $10,000,000 WHEN DUE AND PAYABLE (WHETHER BY ACCELERATION
OR OTHERWISE), UNLESS THE COMPANY IS CONTESTING SUCH SWAP PAYMENT OBLIGATION IN
GOOD FAITH BY APPROPRIATE PROCEEDINGS AND HAS SET ASIDE APPROPRIATE RESERVES
RELATING THERETO IN ACCORDANCE WITH GAAP; PROVIDED THAT IN THE CASE OF ANY
GUARANTIES, ENDORSEMENTS AND OTHER CONTINGENT OBLIGATIONS IN RESPECT OF ANY SUCH
OBLIGATION FOR BORROWED MONEY OF AN ENTITY OTHER THAN THE COMPANY (ALL OF THE
FOREGOING BEING HEREIN CALLED "ACCOMMODATION GUARANTY INDEBTEDNESS"), A DEFAULT
WITH RESPECT TO ANY EVIDENCE OF ACCOMMODATION GUARANTY INDEBTEDNESS OF THE
COMPANY OR UNDER ANY AGREEMENT UNDER WHICH ANY SUCH EVIDENCE OF ACCOMMODATION
GUARANTY INDEBTEDNESS MAY BE OUTSTANDING SHALL CONSTITUTE AN EVENT OF DEFAULT
HEREUNDER ONLY IF THERE SHALL HAVE BEEN A DEFAULT IN THE PERFORMANCE BY THE
COMPANY OF ITS OBLIGATIONS WITH RESPECT TO SUCH ACCOMMODATION GUARANTY
INDEBTEDNESS AND SUCH DEFAULT SHALL CONTINUE FOR MORE THAN 30 DAYS AFTER A
HOLDER OR BENEFICIARY OF SUCH ACCOMMODATION GUARANTY INDEBTEDNESS SHALL HAVE
DEMANDED THE PERFORMANCE OF SUCH OBLIGATION;

                                       48
<PAGE>   55

FINAL JUDGMENT FOR THE PAYMENT OF MONEY IN EXCESS OF $10,000,000 SHALL BE
RENDERED AGAINST THE COMPANY AND THE SAME SHALL REMAIN UNDISCHARGED FOR A PERIOD
OF 60 DAYS DURING WHICH THE JUDGMENT SHALL NOT BE ON APPEAL OR EXECUTION THEREOF
SHALL NOT BE EFFECTIVELY STAYED;

COMPANY OR ANY OF ITS SIGNIFICANT SUBSIDIARIES SHALL (i) APPLY FOR OR CONSENT TO
THE APPOINTMENT OF A RECEIVER, TRUSTEE, ADMINISTRATOR OR LIQUIDATOR OF ITSELF OR
OF ALL OR A SUBSTANTIAL PART OF ITS ASSETS, (ii) BE UNABLE, OR ADMIT IN WRITING
ITS INABILITY OR FAILURE, TO PAY ITS DEBTS GENERALLY, (iii) MAKE A GENERAL
ASSIGNMENT FOR THE BENEFIT OF CREDITORS, (iv) BE ADJUDICATED A BANKRUPT OR
INSOLVENT, (v) COMMENCE ANY CASE, PROCEEDING OR OTHER ACTION UNDER ANY EXISTING
OR FUTURE LAW RELATING TO BANKRUPTCY, INSOLVENCY, REORGANIZATION OR RELIEF OF
DEBTORS SEEKING TO HAVE AN ORDER FOR RELIEF ENTERED WITH RESPECT TO IT, OR
SEEKING TO ADJUDICATE IT A BANKRUPT OR INSOLVENT, OR SEEKING REORGANIZATION,
ARRANGEMENT, ADJUSTMENT, WINDING UP, LIQUIDATION, DISSOLUTION, COMPOSITION OR
OTHER RELIEF WITH RESPECT TO IT OR ITS DEBTS OR AN ARRANGEMENT WITH CREDITORS OR
TAKING ADVANTAGE OF ANY INSOLVENCY LAW OR PROCEEDING FOR THE RELIEF OF DEBTORS,
OR FILE AN ANSWER ADMITTING THE MATERIAL ALLEGATIONS OF A PETITION FILED AGAINST
IT IN ANY BANKRUPTCY, REORGANIZATION OR INSOLVENCY PROCEEDING, OR (vi) TAKE
CORPORATE ACTION FOR THE PURPOSE OF EFFECTING ANY OF THE FOREGOING;

ANY CASE, PROCEEDING OR OTHER ACTION SHALL BE INSTITUTED IN ANY COURT OF
COMPETENT JURISDICTION, AGAINST COMPANY OR ANY OF ITS SIGNIFICANT SUBSIDIARIES,
SEEKING IN RESPECT OF SUCH COMPANY OR ANY OF ITS SIGNIFICANT SUBSIDIARIES
ADJUDICATION IN BANKRUPTCY, REORGANIZATION, DISSOLUTION, WINDING UP,
LIQUIDATION, ADMINISTRATION, A COMPOSITION OR ARRANGEMENT WITH CREDITORS, A
READJUSTMENT OF DEBTS, THE APPOINTMENT OF A TRUSTEE, RECEIVER, ADMINISTRATOR,
LIQUIDATOR OR THE LIKE OF SUCH COMPANY OR ANY OF ITS SIGNIFICANT SUBSIDIARIES OR
OF ALL OR ANY SUBSTANTIAL PART OF ITS ASSETS, OR OTHER LIKE RELIEF IN RESPECT OF
SUCH COMPANY OR ANY OF ITS SIGNIFICANT SUBSIDIARIES UNDER ANY BANKRUPTCY OR
INSOLVENCY LAW AND SUCH CASE, PROCEEDING OR OTHER ACTION RESULTS IN AN ENTRY OF
AN ORDER FOR RELIEF OR ANY SUCH ADJUDICATION OR APPOINTMENT OR IF SUCH CASE,
PROCEEDING OR OTHER ACTION IS BEING CONTESTED BY SUCH COMPANY OR ANY OF ITS
SIGNIFICANT SUBSIDIARIES IN GOOD FAITH, THE SAME SHALL CONTINUE UNDISMISSED, OR
UNSTAYED AND IN EFFECT, FOR ANY PERIOD OF 60 CONSECUTIVE DAYS; OR

AT ANY TIME SUBSEQUENT TO DECEMBER 31, 1999 AND PRIOR TO THE MATURITY DATE,
CONTINUING DIRECTORS SHALL FAIL TO CONSTITUTE AT LEAST A MAJORITY OF THE BOARD
OF DIRECTORS OF THE COMPANY; FOR THE FOREGOING PURPOSE, THE TERM "CONTINUING
DIRECTORS" MEANS THOSE PERSONS WHO WERE DIRECTORS OF THE COMPANY ON

                                       49
<PAGE>   56

DECEMBER 31, 1999 AND ANY PERSON WHOSE ELECTION OR NOMINATION FOR ELECTION AS A
DIRECTOR OF THE COMPANY AT ANY TIME SUBSEQUENT THERETO WAS APPROVED BY AT LEAST
A MAJORITY OF THE PERSONS WHO WERE THEN CONTINUING DIRECTORS;

then, and in every such event (other than an event described in clause (g) or
(h) of this Article), and at any time thereafter during the continuance of such
event, the Administrative Agent shall, at the request of the Required Lenders,
by notice to the Company, take either or both of the following actions, at the
same or different times: (i) terminate the Commitments, and thereupon the
Commitments shall terminate immediately, and (ii) declare the Loans then
outstanding to be due and payable in whole (or in part, in which case any
principal not so declared to be due and payable may thereafter be declared to be
due and payable), and thereupon the principal of the Loans so declared to be due
and payable, together with accrued interest thereon and all fees and other
obligations of any of the Company accrued hereunder, shall become due and
payable immediately, without presentment, demand, protest or other notice of any
kind, all of which are hereby waived by the Company; and in case of any event
with respect to the Company described in clause (g) or (h) of this Article, the
Commitments shall automatically terminate and the principal of the Loans then
outstanding, together with accrued interest thereon and all fees and other
obligations of the Company accrued hereunder, shall automatically become due and
payable, without presentment, demand, protest or other notice of any kind, all
of which are hereby waived by the Company.

                                  ARTICLE VIII

                            The Administrative Agent

                Each of the Lenders hereby irrevocably appoints the
Administrative Agent as its agent and authorizes the Administrative Agent to
take such actions on its behalf and to exercise such powers as are delegated to
the Administrative Agent by the terms hereof, together with such actions and
powers as are reasonably incidental thereto.

                The bank serving as the Administrative Agent hereunder shall
have the same rights and powers in its capacity as a Lender as any other Lender
and may exercise the same as though it were not the Administrative Agent, and
such bank and its Affiliates may accept deposits from, lend money to and
generally engage in any kind of business with the Company or any of its
Subsidiaries thereof or other Affiliate thereof as if it were not the
Administrative Agent hereunder.

                The Administrative Agent shall not have any duties or
obligations except those expressly set forth herein. Without limiting the
generality of the foregoing, (a) the Administrative Agent shall not be subject
to any fiduciary or other implied duties, regardless of whether a Default has
occurred and is continuing, (b) the Administrative Agent shall not have any duty
to take any discretionary action or exercise any discretionary powers, except

                                       50
<PAGE>   57

discretionary rights and powers expressly contemplated hereby that the
Administrative Agent is required to exercise in writing by the Required Lenders,
and (c) except as expressly set forth herein, the Administrative Agent shall not
have any duty to disclose, and shall not be liable for the failure to disclose,
any information relating to the Company or any of its Subsidiaries that is
communicated to or obtained by the bank serving as Administrative Agent or any
of its Affiliates in any capacity. The Administrative Agent shall not be liable
for any action taken or not taken by it with the consent or at the request of
the Required Lenders or all the Lenders to the extent required by Section 9.02
or in the absence of its own gross negligence or wilful misconduct. The
Administrative Agent shall be deemed not to have knowledge of any Default unless
and until written notice thereof is given to the Administrative Agent by the
Company or a Lender, and the Administrative Agent shall not be responsible for
or have any duty to ascertain or inquire into (i) any statement, warranty or
representation made in or in connection with this Agreement, (ii) the contents
of any certificate, report or other document delivered hereunder or in
connection herewith, (iii) the performance or observance of any of the
covenants, agreements or other terms or conditions set forth herein, (iv) the
validity, enforceability, effectiveness or genuineness of this Agreement or any
other agreement, instrument or document, or (v) the satisfaction of any
condition set forth in Article IV or elsewhere herein, other than to confirm
receipt of items expressly required to be delivered to the Administrative Agent.

                The Administrative Agent shall be entitled to rely upon, and
shall not incur any liability for relying upon, any notice, request,
certificate, consent, statement, instrument, document or other writing believed
by it to be genuine and to have been signed or sent by the proper Person. The
Administrative Agent also may rely upon any statement made to it orally or by
telephone and believed by it to be made by the proper Person, and shall not
incur any liability for relying thereon. The Administrative Agent may consult
with legal counsel (who may be counsel for the Company), independent accountants
and other experts selected by it, and shall not be liable for any action taken
or not taken by it in accordance with the advice of any such counsel,
accountants or experts.

                The Administrative Agent may perform any and all its duties and
exercise its rights and powers by or through any one or more sub-agents
appointed by the Administrative Agent. The Administrative Agent and any such
sub-agent may perform any and all its duties and exercise its rights and powers
through their respective Related Parties. The exculpatory provisions of the
preceding paragraphs shall apply to any such sub-agent and to the Related
Parties of the Administrative Agent and any such sub-agent, and shall apply to
their respective activities in connection with the syndication of the credit
facilities provided for herein as well as activities as Administrative Agent.

                Subject to the appointment and acceptance of a successor
Administrative Agent as provided in this paragraph, the Administrative Agent may
resign at any time by notifying the Lenders and the Company. Upon any such
resignation, the Required Lenders shall have the right, in consultation with the
Company, to appoint one of the Lenders a successor. If no such successor shall
have been so appointed by the Required Lenders and shall have accepted such

                                       51
<PAGE>   58

appointment within 30 days after the retiring Administrative Agent gives notice
of its resignation, then the retiring Administrative Agent may, on behalf of the
Lenders and in consultation with the Company, appoint one of the Lenders as a
successor Administrative Agent which shall be a bank with an office in New York,
New York, or an Affiliate of any such bank. Upon the acceptance of its
appointment as Administrative Agent hereunder by a successor, such successor
shall succeed to and become vested with all the rights, powers, privileges and
duties of the retiring Administrative Agent, and the retiring Administrative
Agent shall be discharged from its duties and obligations hereunder. The fees
payable by the Company to a successor Administrative Agent shall be the same as
those payable to its predecessor unless otherwise agreed between the Company and
such successor. After the Administrative Agent's resignation hereunder, the
provisions of this Article and Section 9.03 shall continue in effect for its
benefit in respect of any actions taken or omitted to be taken by it while it
was acting as Administrative Agent.

                Each Lender acknowledges that it has, independently and without
reliance upon the Administrative Agent, the Syndication 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, the Syndication Agent or any other Lender and based on
such documents and information as it shall from time to time deem appropriate,
continue to make its own decisions in taking or not taking action under or based
upon this Agreement, any related agreement or any document furnished hereunder
or thereunder.

                The Syndication Agent and the Documentation Agents shall not
have any duties or responsibilities hereunder in their capacity as such (except
as expressly set forth herein) and shall be entitled to the same rights and
privileges afforded to the Administrative Agent, in its capacity as such under
Article VIII.

                                   ARTICLE IX

                                  Miscellaneous

                SECTION IX.1. Notices. Except in the case of notices and other
communications expressly permitted to be given by telephone, all notices and
other communications provided for herein shall be in writing and shall be
delivered by hand or overnight courier service, mailed by certified or
registered mail or sent by telecopy, as follows:

IF TO THE COMPANY, TO AMERADA HESS CORPORATION, 1185 AVENUE OF THE AMERICAS, NEW
YORK, NEW YORK 10036, ATTENTION OF TREASURER (TELECOPY NO. (212) 536-8617);

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<PAGE>   59

IF TO THE SYNDICATION AGENT, TO GOLDMAN SACHS CREDIT PARTNERS L.P., 85 BROAD
STREET, NEW YORK, NEW YORK 10004, ATTENTION OF STEPHEN KING (TELECOPY NO. (212)
357-0932), WITH A COPY TO BARBARA AARON (TELECOPY NO. (212) 357-4597).

IF TO THE ADMINISTRATIVE AGENT, TO THE CHASE MANHATTAN BANK, ONE CHASE MANHATTAN
PLAZA, 8TH FLOOR, NEW YORK, NEW YORK 10081, ATTENTION OF LUANN DESTEFANO
(TELECOPY NO. (212) 552-5777).

                (b)     if to any other Lender, to it at its address (or
telecopy number) set forth in its Administrative Questionnaire.

Any party hereto may change its address or telecopy number for notices and other
communications hereunder by notice to the other parties hereto. All notices and
other communications given to any party hereto in accordance with the provisions
of this Agreement shall be deemed to have been given on the date of receipt.

                SECTION IX.2. Waivers: Amendments. (a) No failure or delay by
the Syndication Agent and the Administrative Agent or any Lender in exercising
any right or power hereunder shall operate as a waiver thereof, nor shall any
single or partial exercise of any such right or power, or any abandonment or
discontinuance of steps to enforce such a right or power, preclude any other or
further exercise thereof or the exercise of any other right or power. The rights
and remedies of the Syndication Agent and the Administrative Agent and the
Lenders hereunder are cumulative and are not exclusive of any rights or remedies
that they would otherwise have. No waiver of any provision of this Agreement or
consent to any departure by the Company therefrom shall in any event be
effective unless the same shall be permitted by this Section, and then such
waiver or consent shall be effective only in the specific instance and for the
purpose for which given. Without limiting the generality of the foregoing, the
making of a Loan shall not be construed as a waiver of any Default, regardless
of whether the Administrative Agent or any Lender may have had notice or
knowledge of such Default at the time.

NEITHER THIS AGREEMENT NOR ANY PROVISION HEREOF MAY BE WAIVED, AMENDED OR
MODIFIED EXCEPT PURSUANT TO AN AGREEMENT OR AGREEMENTS IN WRITING ENTERED INTO
BY THE COMPANY AND THE REQUIRED LENDERS OR BY THE COMPANY AND THE ADMINISTRATIVE
AGENT WITH THE CONSENT OF THE REQUIRED LENDERS; PROVIDED THAT NO SUCH AGREEMENT
SHALL (i) INCREASE THE COMMITMENT OF ANY LENDER WITHOUT THE WRITTEN CONSENT OF
SUCH LENDER, (ii) REDUCE THE PRINCIPAL AMOUNT OF ANY LOAN OR REDUCE THE RATE OF
INTEREST THEREON, OR REDUCE ANY FEES PAYABLE HEREUNDER, WITHOUT THE WRITTEN
CONSENT OF EACH LENDER AFFECTED THEREBY, (iii) POSTPONE THE SCHEDULED DATE OF
PAYMENT OF THE PRINCIPAL AMOUNT OF ANY LOAN, OR ANY INTEREST THEREON, OR ANY
FEES OR ANY OTHER AMOUNT PAYABLE HEREUNDER, OR REDUCE THE AMOUNT OF, WAIVE OR
EXCUSE ANY SUCH PAYMENT, OR POSTPONE THE SCHEDULED DATE OF EXPIRATION OF ANY

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COMMITMENT, WITHOUT THE WRITTEN CONSENT OF EACH LENDER AFFECTED THEREBY, (iv)
CHANGE SECTION 2.16(b) OR (c) IN A MANNER THAT WOULD ALTER THE PRO RATA SHARING
OF PAYMENTS REQUIRED THEREBY, WITHOUT THE WRITTEN CONSENT OF EACH LENDER, OR (v)
CHANGE ANY OF THE PROVISIONS OF THIS SECTION OR THE DEFINITION OF "REQUIRED
LENDERS" OR ANY OTHER PROVISION HEREOF SPECIFYING THE NUMBER OR PERCENTAGE OF
LENDERS REQUIRED TO WAIVE, AMEND OR MODIFY ANY RIGHTS HEREUNDER OR MAKE ANY
DETERMINATION OR GRANT ANY CONSENT HEREUNDER, WITHOUT THE WRITTEN CONSENT OF
EACH LENDER; PROVIDED FURTHER THAT NO SUCH AGREEMENT SHALL AMEND, MODIFY OR
OTHERWISE AFFECT THE RIGHTS OR DUTIES OF THE ADMINISTRATIVE AGENT HEREUNDER
WITHOUT THE PRIOR WRITTEN CONSENT OF THE ADMINISTRATIVE AGENT.

                SECTION _[ ]_ Expenses; Indemnity: Damage Waiver. (a) THE
COMPANY AGREES TO PAY (i) ALL REASONABLE OUT-OF-POCKET EXPENSES INCURRED BY THE
SYNDICATION AGENT AND THE ADMINISTRATIVE AGENT AND THEIR AFFILIATES, INCLUDING
THE REASONABLE FEES, CHARGES AND DISBURSEMENTS OF COUNSEL FOR THE SYNDICATION
AGENT AND THE ADMINISTRATIVE AGENT, IN CONNECTION WITH THE SYNDICATION OF THE
CREDIT FACILITIES PROVIDED FOR HEREIN, THE PREPARATION AND ADMINISTRATION OF
THIS AGREEMENT AND THE PRIOR CREDIT AGREEMENTS OR ANY AMENDMENTS, MODIFICATIONS
OR WAIVERS OF THE PROVISIONS HEREOF (WHETHER OR NOT THE TRANSACTIONS
CONTEMPLATED HEREBY OR THEREBY SHALL BE CONSUMMATED) AND (ii) ALL OUT-OF-POCKET
EXPENSES INCURRED BY THE SYNDICATION AGENT AND THE ADMINISTRATIVE AGENT OR ANY
LENDER, INCLUDING THE FEES, CHARGES AND DISBURSEMENTS OF ANY COUNSEL FOR THE
SYNDICATION AGENT AND THE ADMINISTRATIVE AGENT OR ANY LENDER, IN CONNECTION WITH
THE ENFORCEMENT OR PROTECTION OF ITS RIGHTS IN CONNECTION WITH THIS AGREEMENT,
INCLUDING ITS RIGHTS UNDER THIS SECTION, OR IN CONNECTION WITH THE LOANS MADE
HEREUNDER, INCLUDING IN CONNECTION WITH ANY WORKOUT, RESTRUCTURING OR
NEGOTIATIONS IN RESPECT THEREOF.

THE COMPANY AGREES TO INDEMNIFY THE SYNDICATION AGENT AND THE ADMINISTRATIVE
AGENT AND EACH LENDER, AND EACH RELATED PARTY OF ANY OF THE FOREGOING PERSONS
(EACH SUCH PERSON BEING CALLED AN "INDEMNITEE") AGAINST, AND HOLD EACH
INDEMNITEE HARMLESS FROM, ANY AND ALL LOSSES, CLAIMS, DAMAGES, LIABILITIES AND
RELATED EXPENSES, INCLUDING THE FEES, CHARGES AND DISBURSEMENTS, OF ANY COUNSEL
FOR ANY INDEMNITEE, INCURRED BY OR ASSERTED AGAINST ANY INDEMNITEE ARISING OUT
OF, IN CONNECTION WITH, OR AS A RESULT OF (i) THE EXECUTION OR DELIVERY OF THIS
AGREEMENT AND THE PRIOR CREDIT AGREEMENTS OR ANY AGREEMENT OR INSTRUMENT
CONTEMPLATED HEREBY, THE PERFORMANCE BY THE PARTIES HERETO OF THEIR RESPECTIVE
OBLIGATIONS

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<PAGE>   61

HEREUNDER OR THE CONSUMMATION OF THE TRANSACTIONS OR ANY OTHER TRANSACTIONS
CONTEMPLATED HEREBY, (ii) ANY LOAN OR THE USE OF THE PROCEEDS THEREFROM, (iii)
ANY ACTUAL OR ALLEGED PRESENCE OR RELEASE OF HAZARDOUS MATERIALS ON OR FROM ANY
PROPERTY OWNED OR OPERATED BY THE COMPANY OR ANY OF ITS SUBSIDIARIES, OR ANY
ENVIRONMENTAL LIABILITY RELATED IN ANY WAY TO THE COMPANY OR ANY OF ITS
SUBSIDIARIES, OR (iv) ANY ACTUAL OR PROSPECTIVE CLAIM, LITIGATION, INVESTIGATION
OR PROCEEDING RELATING TO ANY OF THE FOREGOING, WHETHER BASED ON CONTRACT, TORT
OR ANY OTHER THEORY AND REGARDLESS OF WHETHER ANY INDEMNITEE IS A PARTY THERETO;
PROVIDED THAT SUCH INDEMNITY SHALL NOT, AS TO ANY INDEMNITEE, BE AVAILABLE TO
THE EXTENT THAT SUCH LOSSES, CLAIMS, DAMAGES, LIABILITIES OR RELATED EXPENSES
ARE DETERMINED BY A COURT OF COMPETENT JURISDICTION BY FINAL AND NONAPPEALABLE
JUDGMENT TO HAVE RESULTED FROM THE GROSS NEGLIGENCE OR WILFUL MISCONDUCT OF SUCH
INDEMNITEE OR FROM A BREACH OF THIS AGREEMENT BY SUCH INDEMNITEE.

TO THE EXTENT THAT THE COMPANY FAILS TO PAY ANY AMOUNT REQUIRED TO BE PAID BY IT
TO THE SYNDICATION AGENT AND THE ADMINISTRATIVE AGENT UNDER PARAGRAPH (a) OR (b)
OF THIS SECTION, EACH LENDER SEVERALLY AGREES TO PAY TO THE SYNDICATION AGENT
AND THE ADMINISTRATIVE AGENT SUCH LENDER'S APPLICABLE PERCENTAGE (DETERMINED AS
OF THE TIME THAT THE APPLICABLE UNREIMBURSED EXPENSE OR INDEMNITY PAYMENT IS
SOUGHT) OF SUCH UNPAID AMOUNT; PROVIDED THAT THE UNREIMBURSED EXPENSE OR
INDEMNIFIED LOSS, CLAIM, DAMAGE, LIABILITY OR RELATED EXPENSE, AS THE CASE MAY
BE, WAS INCURRED BY OR ASSERTED AGAINST THE SYNDICATION AGENT AND THE
ADMINISTRATIVE AGENT IN THEIR CAPACITY AS SUCH.

TO THE EXTENT PERMITTED BY APPLICABLE LAW, THE COMPANY SHALL NOT ASSERT, AND
HEREBY WAIVES, ANY CLAIM AGAINST ANY INDEMNITEE, ON ANY THEORY OF LIABILITY, FOR
SPECIAL, INDIRECT, CONSEQUENTIAL OR PUNITIVE DAMAGES (AS OPPOSED TO DIRECT OR
ACTUAL DAMAGES) ARISING OUT OF, IN CONNECTION WITH, OR AS A RESULT OF, THIS
AGREEMENT OR ANY AGREEMENT OR INSTRUMENT CONTEMPLATED HEREBY, THE TRANSACTIONS,
ANY LOAN OR THE USE OF THE PROCEEDS THEREOF.

ALL AMOUNTS DUE UNDER THIS SECTION SHALL BE PAYABLE PROMPTLY AFTER WRITTEN
DEMAND THEREFOR.

                SECTION IX.3. Successors and Assigns. (a) The provisions of this
Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns permitted hereby, except that the
Company may not assign or otherwise transfer any of its rights or obligations
hereunder without the prior written consent of each Lender (and any attempted
assignment or transfer by any the Company without such consent shall be null and

                                       55
<PAGE>   62

void). Nothing in this Agreement, expressed or implied, shall be construed to
confer upon any Person (other than the parties hereto, their respective
successors and assigns permitted hereby and, to the extent expressly
contemplated hereby, the Related Parties of each of the Syndication Agent and
the Administrative Agent and the Lenders) any legal or equitable right, remedy
or claim under or by reason of this Agreement.

ANY LENDER MAY ASSIGN TO ONE OR MORE ASSIGNEES ALL OR A PORTION OF ITS RIGHTS
AND OBLIGATIONS UNDER THIS AGREEMENT (INCLUDING ALL OR A PORTION OF ITS
COMMITMENT AND THE LOANS AT THE TIME OWING TO IT); PROVIDED THAT (i) EXCEPT IN
THE CASE OF AN ASSIGNMENT TO A LENDER OR AN AFFILIATE OF A LENDER, EACH OF THE
COMPANY (EXCEPT, UPON THE OCCURRENCE AND DURING THE CONTINUANCE OF AN EVENT OF
DEFAULT, THE CONSENT OF THE COMPANY SHALL NOT BE REQUIRED) AND THE
ADMINISTRATIVE AGENT MUST GIVE THEIR PRIOR WRITTEN CONSENT TO SUCH ASSIGNMENT
(WHICH CONSENT SHALL NOT BE UNREASONABLY WITHHELD), (ii) EXCEPT IN THE CASE OF
AN ASSIGNMENT TO A LENDER OR AN AFFILIATE OF A LENDER OR AN ASSIGNMENT OF THE
ENTIRE REMAINING AMOUNT OF THE ASSIGNING LENDER'S COMMITMENT, THE AMOUNT OF THE
COMMITMENT OF THE ASSIGNING LENDER SUBJECT TO EACH SUCH ASSIGNMENT (DETERMINED
AS OF THE DATE THE ASSIGNMENT AND ACCEPTANCE WITH RESPECT TO SUCH ASSIGNMENT IS
DELIVERED TO THE ADMINISTRATIVE AGENT) SHALL EACH NOT BE LESS THAN $5,000,000
UNLESS EACH OF THE COMPANY AND THE ADMINISTRATIVE AGENT OTHERWISE CONSENT, (iii)
EACH PARTIAL ASSIGNMENT SHALL BE MADE AS AN ASSIGNMENT OF A PROPORTIONATE PART
OF ALL THE ASSIGNING LENDER'S RIGHTS AND OBLIGATIONS UNDER THIS AGREEMENT,
EXCEPT THAT THIS CLAUSE (iii) SHALL NOT APPLY TO RIGHTS IN RESPECT OF
OUTSTANDING COMPETITIVE LOANS, (iv) THE PARTIES TO EACH ASSIGNMENT SHALL EXECUTE
AND DELIVER TO THE ADMINISTRATIVE AGENT AN ASSIGNMENT AND ACCEPTANCE, TOGETHER
(EXCEPT IN THE CASE OF AN ASSIGNMENT BY A LENDER TO ONE OF ITS AFFILIATES OR AN
ASSIGNMENT AS A RESULT OF ANY OF THE EVENTS CONTEMPLATED BY SECTION 2.17) WITH A
PROCESSING AND RECORDATION FEE OF $500 IN THE CASE OF ASSIGNMENTS MADE BY OR TO
SYNDICATION AGENT AND $2,000 IN THE CASE OF ALL OTHER ASSIGNMENTS, AND (v) THE
ASSIGNEE, IF IT SHALL NOT BE A LENDER, SHALL DELIVER TO THE ADMINISTRATIVE AGENT
AN ADMINISTRATIVE QUESTIONNAIRE; PROVIDED FURTHER THAT ANY CONSENT OF THE
COMPANY OTHERWISE REQUIRED UNDER THIS PARAGRAPH SHALL NOT BE REQUIRED IF AN
EVENT OF DEFAULT UNDER CLAUSE (g) OR (h) OF ARTICLE VII HAS OCCURRED AND IS
CONTINUING. UPON ACCEPTANCE AND RECORDING PURSUANT TO PARAGRAPH (d) OF THIS
SECTION, FROM AND AFTER THE EFFECTIVE DATE SPECIFIED IN EACH ASSIGNMENT AND
ACCEPTANCE, THE ASSIGNEE THEREUNDER SHALL BE A PARTY HERETO AND, TO THE EXTENT
OF THE INTEREST ASSIGNED BY SUCH ASSIGNMENT AND ACCEPTANCE, HAVE THE RIGHTS AND
OBLIGATIONS OF A LENDER UNDER THIS AGREEMENT, AND THE ASSIGNING LENDER
THEREUNDER SHALL, TO THE EXTENT OF THE INTEREST ASSIGNED BY SUCH ASSIGNMENT AND
ACCEPTANCE, BE RELEASED FROM ITS OBLIGATIONS UNDER THIS AGREEMENT (AND, IN THE
CASE OF AN ASSIGNMENT AND ACCEPTANCE COVERING ALL OF THE ASSIGNING LENDER'S
RIGHTS AND OBLIGATIONS UNDER THIS AGREEMENT, SUCH LENDER SHALL CEASE TO BE A
PARTY HERETO BUT SHALL CONTINUE

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<PAGE>   63

TO BE ENTITLED TO THE BENEFITS OF SECTIONS 2.13, 2.14, 2.15 AND 9.03). ANY
ASSIGNMENT OR TRANSFER BY A LENDER OF RIGHTS OR OBLIGATIONS UNDER THIS AGREEMENT
THAT DOES NOT COMPLY WITH THIS PARAGRAPH SHALL BE TREATED FOR PURPOSES OF THIS
AGREEMENT AS A SALE BY SUCH LENDER OF A PARTICIPATION IN SUCH RIGHTS AND
OBLIGATIONS IN ACCORDANCE WITH PARAGRAPH (e) OF THIS SECTION.

THE ADMINISTRATIVE AGENT, ACTING FOR THIS PURPOSE AS AN AGENT OF THE COMPANY,
SHALL MAINTAIN AT ONE OF ITS OFFICES IN THE CITY OF NEW YORK A COPY OF EACH
ASSIGNMENT AND ACCEPTANCE DELIVERED TO IT AND A REGISTER FOR THE RECORDATION OF
THE NAMES AND ADDRESSES OF THE LENDERS, AND THE COMMITMENT OF, AND PRINCIPAL
AMOUNT OF THE LOANS OWING TO, EACH LENDER PURSUANT TO THE TERMS HEREOF FROM TIME
TO TIME (THE "REGISTER"). THE ENTRIES IN THE REGISTER SHALL BE CONCLUSIVE, AND
THE COMPANY, THE ADMINISTRATIVE AGENT AND THE LENDERS MAY TREAT EACH PERSON
WHOSE NAME IS RECORDED IN THE REGISTER PURSUANT TO THE TERMS HEREOF AS A LENDER
HEREUNDER FOR ALL PURPOSES OF THIS AGREEMENT, NOTWITHSTANDING NOTICE TO THE
CONTRARY.

UPON ITS RECEIPT OF A DULY COMPLETED ASSIGNMENT AND ACCEPTANCE EXECUTED BY AN
ASSIGNING LENDER AND AN ASSIGNEE, THE ASSIGNEE'S COMPLETED ADMINISTRATIVE
QUESTIONNAIRE (UNLESS THE ASSIGNEE SHALL ALREADY BE A LENDER HEREUNDER), THE
PROCESSING AND RECORDATION FEE REFERRED TO IN PARAGRAPH (b) OF THIS SECTION AND
ANY WRITTEN CONSENT TO SUCH ASSIGNMENT REQUIRED BY PARAGRAPH (b) OF THIS
SECTION, THE ADMINISTRATIVE AGENT SHALL ACCEPT SUCH ASSIGNMENT AND ACCEPTANCE
AND RECORD THE INFORMATION CONTAINED THEREIN IN THE REGISTER. NO ASSIGNMENT
SHALL BE EFFECTIVE FOR PURPOSES OF THIS AGREEMENT UNLESS IT HAS BEEN RECORDED IN
THE REGISTER AS PROVIDED IN THIS PARAGRAPH.

ANY LENDER MAY, WITHOUT THE CONSENT OF ANY OF THE COMPANY OR THE ADMINISTRATIVE
AGENT, SELL PARTICIPATIONS TO ONE OR MORE BANKS OR OTHER ENTITIES (A
"PARTICIPANT") IN ALL OR A PORTION OF SUCH LENDER'S RIGHTS AND OBLIGATIONS UNDER
THIS AGREEMENT (INCLUDING ALL OR A PORTION OF ITS COMMITMENT AND THE LOANS OWING
TO IT); PROVIDED THAT (i) SUCH LENDER'S OBLIGATIONS UNDER THIS AGREEMENT SHALL
REMAIN UNCHANGED, (ii) SUCH LENDER SHALL REMAIN SOLELY RESPONSIBLE TO THE OTHER
PARTIES HERETO FOR THE PERFORMANCE OF SUCH OBLIGATIONS AND (iii) THE COMPANY,
THE ADMINISTRATIVE AGENT AND THE OTHER LENDERS SHALL CONTINUE TO DEAL SOLELY AND
DIRECTLY WITH SUCH LENDER IN CONNECTION WITH SUCH LENDER'S RIGHTS AND
OBLIGATIONS UNDER THIS AGREEMENT. ANY AGREEMENT OR INSTRUMENT PURSUANT TO WHICH
A LENDER SELLS SUCH A PARTICIPATION SHALL PROVIDE THAT SUCH LENDER SHALL RETAIN
THE SOLE RIGHT TO ENFORCE THIS AGREEMENT AND TO APPROVE ANY AMENDMENT,
MODIFICATION OR WAIVER OF ANY PROVISION OF THIS AGREEMENT; PROVIDED THAT SUCH
AGREEMENT OR INSTRUMENT

                                       57
<PAGE>   64

MAY PROVIDE THAT SUCH LENDER WILL NOT, WITHOUT THE CONSENT OF THE PARTICIPANT,
AGREE TO ANY AMENDMENT, MODIFICATION OR WAIVER DESCRIBED IN THE FIRST PROVISO TO
SECTION 9.02(b) THAT AFFECTS SUCH PARTICIPANT. SUBJECT TO PARAGRAPH (f) OF THIS
SECTION, THE COMPANY AGREES THAT EACH PARTICIPANT SHALL BE ENTITLED TO THE
BENEFITS OF SECTIONS 2.13, 2.14 AND 2.15 TO THE SAME EXTENT AS IF IT WERE A
LENDER AND HAD ACQUIRED ITS INTEREST BY ASSIGNMENT PURSUANT TO PARAGRAPH (b) OF
THIS SECTION.

A PARTICIPANT SHALL NOT BE ENTITLED TO RECEIVE ANY GREATER PAYMENT UNDER SECTION
2.13 OR 2.15 THAN THE APPLICABLE LENDER WOULD HAVE BEEN ENTITLED TO RECEIVE WITH
RESPECT TO THE PARTICIPATIONS SOLD TO SUCH PARTICIPANT, UNLESS THE SALE OF THE
PARTICIPATIONS TO SUCH PARTICIPANT IS MADE WITH THE COMPANY'S PRIOR WRITTEN
CONSENT. A PARTICIPANT THAT WOULD BE A FOREIGN LENDER IF IT WERE A LENDER SHALL
NOT BE ENTITLED TO THE BENEFITS OF SECTION 2.15 UNLESS THE COMPANY IS NOTIFIED
OF THE PARTICIPATIONS SOLD TO SUCH PARTICIPANT AND SUCH PARTICIPANT AGREES, FOR
THE BENEFIT OF THE COMPANY, TO COMPLY WITH SECTION 2.15(e) AS THOUGH IT WERE A
LENDER.

ANY LENDER MAY AT ANY TIME PLEDGE OR ASSIGN A SECURITY INTEREST IN ALL OR ANY
PORTION OF ITS RIGHTS UNDER THIS AGREEMENT TO SECURE OBLIGATIONS OF SUCH LENDER,
INCLUDING ANY SUCH PLEDGE OR ASSIGNMENT TO A FEDERAL RESERVE BANK, AND THIS
SECTION SHALL NOT APPLY TO ANY SUCH PLEDGE OR ASSIGNMENT OF A SECURITY INTEREST;
PROVIDED THAT NO SUCH PLEDGE OR ASSIGNMENT OF A SECURITY INTEREST SHALL RELEASE
A LENDER FROM ANY OF ITS OBLIGATIONS HEREUNDER OR SUBSTITUTE ANY SUCH ASSIGNEE
FOR SUCH LENDER AS A PARTY HERETO.

                SECTION IX.4. Survival. All covenants, agreements,
representations and warranties made by the Company herein and in the
certificates or other instruments delivered in connection with or pursuant to
this Agreement shall be considered to have been relied upon by the other parties
hereto and shall survive the execution and delivery of this Agreement and the
making of any Loans, regardless of any investigation made by any such other
party or on its behalf and notwithstanding that the Syndication Agent and the
Administrative Agent or any Lender may have had notice or knowledge of any
Default or incorrect representation or warranty at the time any credit is
extended hereunder, and shall continue in full force and effect as long as the
principal of or any accrued interest on any Loan or any fee or any other amount
payable under this Agreement is outstanding and unpaid and so long as the
Commitments have not expired or terminated. The provisions of Sections 2.13,
2.14, 2.15 and 9.03 shall survive and remain in full force and effect regardless
of the consummation of the transactions contemplated

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<PAGE>   65

hereby, the repayment of the Loans, the expiration or termination of the
Commitments or the termination of this Agreement or any provision hereof.

                SECTION IX.5. Counterparts: Integration: Effectiveness. This
Agreement may be executed in counterparts (and by different parties hereto on
different counterparts), each of which shall constitute an original, but all of
which when taken together shall constitute a single contract. This Agreement and
any separate letter agreements with respect to fees payable to the Syndication
Agent and the Administrative Agent constitute the entire contract among the
parties relating to the subject matter hereof and supersede any and all previous
agreements and understandings, oral or written, relating to the subject matter
hereof. Except as provided in Section 4.01, this Agreement shall become
effective when it shall have been executed by the Syndication Agent and the
Administrative Agent and when the Syndication Agent and the Administrative Agent
shall have received counterparts hereof which, when taken together, bear the
signatures of each of the other parties hereto, and thereafter shall be binding
upon and inure to the benefit of the parties hereto and their respective
successors and assigns. Delivery of an executed counterpart of a signature page
of this Agreement by telecopy shall be effective as delivery of a manually
executed counterpart of this Agreement.

                SECTION IX.6. Severability. Any provision of this Agreement held
to be invalid, illegal or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such invalidity, illegality or
unenforceability without affecting the validity, legality and enforceability of
the remaining provisions hereof; and the invalidity of a particular provision in
a particular jurisdiction shall not invalidate such provision in any other
jurisdiction.

                SECTION IX.7. Right of Setoff. If an Event of Default shall have
occurred and be continuing, each Lender is hereby authorized at any time and
from time to time, to the fullest extent permitted by law, to set off and apply
any and all deposits (general or special, time or demand, provisional or final)
at any time held and other indebtedness at any time owing by such Lender to or
for the credit or the account of the Company against any of and all the
obligations of the Company now or hereafter existing under this Agreement held
by such Lender, irrespective of whether or not such Lender shall have made any
demand under this Agreement and although such obligations may be unmatured. The
rights of each Lender under this Section are in addition to other rights and
remedies (including other rights of setoff) which such Lender may have.

                SECTION IX.8. Governing Law; Jurisdiction; Consent to Service of
Process; Process Agent; Waiver of Immunity. (a) This Agreement shall be
construed in accordance with and governed by the law of the State of New York.

THE COMPANY HEREBY IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS
PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THE SUPREME COURT OF THE STATE OF
NEW YORK SITTING IN NEW YORK COUNTY AND OF THE UNITED STATES DISTRICT COURT OF
THE

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<PAGE>   66

SOUTHERN DISTRICT OF NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY
ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, OR FOR
RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO
HEREBY IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY
SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE OR,
TO THE EXTENT PERMITTED BY LAW, IN SUCH FEDERAL COURT. EACH OF THE PARTIES
HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE
CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR
IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS AGREEMENT SHALL AFFECT ANY
RIGHT THAT THE ADMINISTRATIVE AGENT OR ANY LENDER MAY OTHERWISE HAVE TO BRING
ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT AGAINST THE COMPANY OR ITS
PROPERTIES IN THE COURTS OF ANY JURISDICTION

THE COMPANY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT
IT MAY LEGALLY AND EFFECTIVELY DO SO, ANY OBJECTION WHICH IT MAY NOW OR
HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUIT, ACTION OR PROCEEDING ARISING
OUT OF OR RELATING TO THIS AGREEMENT IN ANY COURT REFERRED TO IN PARAGRAPH (b)
OF THIS SECTION. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE
MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.

THE COMPANY IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED
FOR NOTICES TO THE COMPANY IN SECTION 9.01 AND EACH OTHER PARTY TO THIS
AGREEMENT IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR
NOTICES TO IT IN SECTION 9.01. NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT
OF ANY PARTY TO THIS AGREEMENT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY
LAW.

                SECTION IX.9. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE
TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF
OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER
BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES
THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT
AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY,
AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

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                SECTION IX.10. Headings. Article and Section headings and the
Table of Contents used herein are for convenience of reference only, are not
part of this Agreement and shall not affect the construction of, or be taken
into consideration in interpreting, this Agreement.

                SECTION IX.11. Confidentiality. Each of the Syndication Agent
and the Administrative Agent and the Lenders agrees to maintain the
confidentiality of the Information (as defined below), except that Information
may be disclosed (a) to its and its Affiliates' directors, officers, employees
and agents, including accountants, legal counsel and other advisors (it being
understood that the Persons to whom such disclosure is made will be informed of
the confidential nature of such Information and instructed to keep such
Information confidential), (b) to the extent requested by any regulatory
authority, (c) to the extent required by applicable laws or regulations or by
any subpoena or similar legal process, (d) to any other party to this Agreement,
(e) in connection with the exercise of any remedies hereunder or any suit,
action or proceeding relating to this Agreement or the enforcement of rights
hereunder, (f) subject to an agreement containing provisions substantially the
same as those of this Section, to any assignee of or Participant in, or any
prospective assignee of or Participant in, any of its rights or obligations
under this Agreement, (g) with the consent of the Company or (h) to the extent
such Information (i) becomes publicly available other than as a result of a
breach of this Section or (ii) becomes available to the Syndication Agent and
the Administrative Agent or any Lender on a non-confidential basis from a source
other than the Company. For the purposes of this Section, "Information" means
all information received from the Company relating to the Company or its
business, other than any such information that is available to the Syndication
Agent and the Administrative Agent or any Lender on a nonconfidential basis
prior to disclosure by the Company; provided that, in the case of information
received from the Company after the date hereof, such information is clearly
identified at the time of delivery as confidential. Any Person required to
maintain the confidentiality of Information as provided in this Section shall be
considered to have complied with its obligation to do so if such Person has
exercised the same degree of care to maintain the confidentiality of such
Information as such Person would accord to its own confidential information.

                SECTION IX.12. Third Amendment & Restatement. Upon the Third
Amended and Restated Effective Date, this Agreement shall amend and restate and
replace in its entirety the Second Amended and Restated Credit Agreement.

                 [Remainder of page intentionally left blank.]

                                       61
<PAGE>   68

        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.

COMPANY:                                AMERADA HESS CORPORATION

                                        By: s/s John Y. Schreyer
                                            ---------------------------------
                                            Name:  John Y. Schreyer
                                            Title: Chief Financial Officer

                                      S-1
<PAGE>   69

SOLE SYNDICATION AGENT,
JOINT BOOK RUNNER, JOINT
LEAD ARRANGER AND
A LENDER:                               GOLDMAN SACHS CREDIT PARTNERS L.P.

                                        By: s/s Robert T. Wagner
                                            ---------------------------------
                                            Name: Robert T. Wagner
                                            Authorized Signatory

                                      S-2
<PAGE>   70

JOINT BOOK RUNNER AND JOINT
LEAD ARRANGER                           CHASE SECURITIES INC.

                                        By: s/s Timothy Wong
                                            ---------------------------------
                                            Name:  Timothy Wong
                                            Title: Vice President

                                      S-3
<PAGE>   71

CO-DOCUMENTATION AGENT,
ARRANGER AND A LENDER                   CITIBANK, N.A.

                                        By: s/s Gordon DeKuyper
                                            ---------------------------------
                                            Name:  Gordon DeKuyper
                                            Title: Vice President

                                      S-4
<PAGE>   72

CO-DOCUMENTATION AGENT,
ARRANGER AND A LENDER                   BANK OF AMERICA, N.A.

                                        By: s/s Michael J. Dillon
                                            ---------------------------------
                                            Name:  Michael J. Dillon
                                            Title: Managing Director

                                      S-5
<PAGE>   73

CO-DOCUMENTATION AGENT,
ARRANGER AND A LENDER                   BARCLAYS BANK PLC

                                        By: s/s Nicholas Bell
                                            ---------------------------------
                                            Name:  Nicholas Bell
                                            Title: Director

                                      S-6
<PAGE>   74

ADMINISTRATIVE AGENT
AND A LENDER:                           THE CHASE MANHATTAN BANK

                                        By: s/s Beth Lawrence
                                            ---------------------------------
                                            Name:  Beth Lawrence
                                            Title: Managing Director

                                      S-7
<PAGE>   75

LENDERS:                                THE DAI-ICHI KANGYO BANK, LTD.

                                        By: s/s Maureen Carson
                                            ---------------------------------
                                            Name:  Maureen Carson
                                            Title: Account Officer

                                      S-8
<PAGE>   76

                                        THE INDUSTRIAL BANK OF JAPAN,
                                          LIMITED

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

                                      S-9
<PAGE>   77

                                        THE FUJI BANK, LIMITED

                                        By: s/s Yuji Tanaka
                                            ---------------------------------
                                            Name:  Yuji Tanaka
                                            Title: Vice President

                                      S-10
<PAGE>   78

                                        ABN AMRO BANK, N.V.

                                        By: s/s W. Bryan Chapman
                                            ---------------------------------
                                            Name:  W. Bryan Chapman
                                            Title: Group Vice President

                                        By: s/s Frank R. Russo Jr.
                                            ---------------------------------
                                            Name:  Frank R. Russo Jr.
                                            Title: Vice President

                                      S-11
<PAGE>   79

                                        BANK OF TOKYO-MITSUBISHI
                                          TRUST COMPANY

                                        By: s/s T. Fennessey
                                            ---------------------------------
                                            Name:  T. Fennessey
                                            Title: Vice President

                                      S-12
<PAGE>   80

                                        BNP PARIBAS

                                        By: s/s Brian M. Malon
                                            ---------------------------------
                                            Name:  Brian M. Malon
                                            Title: Director

                                        By: s/s Xavier M. Venereau
                                            ---------------------------------
                                            Name:  Xavier M. Venereau
                                            Title: Vice President

                                      S-13
<PAGE>   81

                                        FLEET NATIONAL BANK

                                        By: s/s Michael J. Brochetti
                                            ---------------------------------
                                            Name:  Michael J. Brochetti
                                            Title: Vice President

                                      S-14
<PAGE>   82

                                        ROYAL BANK OF CANADA

                                        By: s/s Linda M. Stephens
                                            ---------------------------------
                                            Name:  Linda M. Stephens
                                            Title: Senior Manager

                                      S-15
<PAGE>   83

                                        THE ROYAL BANK OF SCOTLAND PLC

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

                                      S-16
<PAGE>   84

                                        THE BANK OF NOVA SCOTIA

                                        By: s/s William R. Collins
                                            ---------------------------------
                                            Name:  William R. Collins
                                            Title: Managing Director

                                      S-17
<PAGE>   85

                                        WESTDEUTSCHE LANDESBANK
                                          GIROZENTRALE

                                        By: s/s Duncan M. Robertson
                                            ---------------------------------
                                            Name:  Duncan M. Robertson
                                            Title: Director

                                        By: s/s Monika K. Kump
                                            ---------------------------------
                                            Name:  Monika K. Kump
                                            Title: Manager

                                      S-18
<PAGE>   86

                                        DEN NORSKE BANK ASA

                                        By: s/s Hans Jorgen Ormar
                                            ---------------------------------
                                            Name:  Hans Jorgen Ormar
                                            Title: Vice President

                                        By: s/s Alfred C. Jones
                                            ---------------------------------
                                            Name:  Alfred C. Jones
                                            Title: Senior Vice President

                                      S-19
<PAGE>   87

                                        THE BANK OF NEW YORK

                                        By: s/s John V. Yancey
                                            ---------------------------------
                                            Name:  John V. Yancey
                                            Title: Senior Vice President

                                      S-20
<PAGE>   88

                                        CIBC, INC.

                                        By: s/s Lindsay Gordon
                                            ---------------------------------
                                            Name:  Lindsay Gordon
                                            Title: Executive Director
                                                   CIBC World Markets Corp.,
                                                   as Agent

                                      S-21
<PAGE>   89

                                        THE SUMITOMO BANK, LIMITED

                                        By: s/s C. Michael Garrido
                                            ---------------------------------
                                            Name:  C. Michael Garrido
                                            Title: Senior Vice President

                                      S-22
<PAGE>   90

                                        UNIBANK

                                        By: s/s Torben Rolver
                                            ---------------------------------
                                            Name:  Torben Rolver
                                            Title: First Vice President

                                        By: s/s Tine Scharling
                                            ---------------------------------
                                            Name:  Tine Scharling
                                            Title: Vice President

                                      S-23
<PAGE>   91

                                        SUNTRUST BANK

                                        By: s/s David J. Edge
                                            ---------------------------------
                                            Name:  David J. Edge
                                            Title: Director

                                      S-24
<PAGE>   92

                                        BAYERISCHELANDESBANK
                                          GIROZENTRALE, CAYMAN ISLANDS
                                            BRANCH

                                        By: s/s Alexander Kohnert
                                            ---------------------------------
                                            Name:  Alexander Kohnert
                                            Title: First Vice President

                                        By: s/s Sean O' Sullivan
                                            ---------------------------------
                                            Name:  Sean O'Sullivan
                                            Title: Vice President

                                      S-25
<PAGE>   93

                                        THE NORTHERN TRUST BANK

                                        By: s/s David J. Mitchell
                                            ---------------------------------
                                            Name:  David J. Mitchell
                                            Title: Vice President

                                      S-26

<PAGE>   94
                                                                   SCHEDULE 2.01
                                                   TO THIRD AMENDED AND RESTATED
                                                                CREDIT AGREEMENT

                                   Commitments

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------
Lender                                                               Commitment
------                                                               ----------
----------------------------------------------------------------------------------------------------
<S>                                                                  <C>             <C>
Goldman Sachs Credit Partners L.P.                                   $112,500,000
----------------------------------------------------------------------------------------------------
The Chase Manhattan Bank                                             $112,500,000
----------------------------------------------------------------------------------------------------
Citibank, N.A.                                                       $100,000,000
----------------------------------------------------------------------------------------------------
Bank of America, N.A.                                                $100,000,000
----------------------------------------------------------------------------------------------------
Barclays Bank PLC                                                    $100,000,000
----------------------------------------------------------------------------------------------------
Mizuho Financial Group                                               $97,500,000
----------------------------------------------------------------------------------------------------
        The Industrial Bank of Japan, Limited                                         $42,500,000
----------------------------------------------------------------------------------------------------
        The Fuji Bank, Limited                                                        $32,500,000
----------------------------------------------------------------------------------------------------
        The Dai-Ichi Kangyo Bank, Ltd.                                                $22,500,000
----------------------------------------------------------------------------------------------------
Bank of Tokyo-Mitsubishi Trust Company                               $75,000,000
----------------------------------------------------------------------------------------------------
BNP Paribas                                                          $75,000,000
----------------------------------------------------------------------------------------------------
Fleet National Bank                                                  $75,000,000
----------------------------------------------------------------------------------------------------
Royal Bank of Canada                                                 $75,000,000
----------------------------------------------------------------------------------------------------
The Bank of Nova Scotia                                              $75,000,000
---------------------------------------------------------------------------------------------------
Royal Bank of Scotland plc                                           $75,000,000
----------------------------------------------------------------------------------------------------
Westdeutsche Landesbank Girozentrale                                 $75,000,000
----------------------------------------------------------------------------------------------------
Den norske Bank ASA                                                  $62,500,000
---------------------------------------------------------------------------------------------------
ABN AMRO Bank, N.V.                                                  $50,000,000
---------------------------------------------------------------------------------------------------
CIBC, Inc.                                                           $50,000,000
----------------------------------------------------------------------------------------------------
The Bank of New York                                                 $50,000,000
----------------------------------------------------------------------------------------------------
The Sumitomo Bank, Limited                                           $50,000,000
----------------------------------------------------------------------------------------------------
Bayerische Landesbank, Cayman Islands Branch                         $25,000,000
----------------------------------------------------------------------------------------------------
Unibank                                                              $25,000,000
----------------------------------------------------------------------------------------------------
SunTrust Bank                                                        $25,000,000
----------------------------------------------------------------------------------------------------
The Northern Trust Bank                                              $15,000,000
                                                                     -----------
----------------------------------------------------------------------------------------------------
        Total                                                        $1,500,000,000
                                                                     ==============
----------------------------------------------------------------------------------------------------
</TABLE>

                                  SCH 2.01-1

<PAGE>   95

                                                                   SCHEDULE 3.10
                                                   TO THIRD AMENDED AND RESTATED
                                                                CREDIT AGREEMENT

                             Scheduled Debt

                                  SCH 3.10-1

<PAGE>   96

                                                                   SCHEDULE 6.02
                                                   TO THIRD AMENDED AND RESTATED
                                                                CREDIT AGREEMENT

                                 Existing Liens

                                  SCH 6.02-1

<PAGE>   97

                                                                       EXHIBIT A
                                                   TO THIRD AMENDED AND RESTATED
                                                                CREDIT AGREEMENT

                                     FORM OF
                            ASSIGNMENT AND ACCEPTANCE

                Reference is made to the Third Amended and Restated "Facility B"
Credit Agreement, dated as of January 23, 2001 among Amerada Hess Corporation
(the "Company"), the several banks and other financial institutions from time to
time parties thereto (the "Lenders"), Goldman Sachs Credit Partners L.P., as
Joint Book Runner, Joint Lead Arranger and sole Syndication Agent, Chase
Securities Inc., as Joint Book Runner and Joint Lead Arranger, Bank of America,
N.A., as Co-Documentation Agent and Arranger, Citibank, N.A., as
Co-Documentation Agent and Arranger, Barclays Bank PLC, as Co-Documentation
Agent and Arranger and The Chase Manhattan Bank, as Administrative Agent (the
"Credit Agreement"). Unless otherwise defined herein, terms defined in the
Credit Agreement and used herein shall have the meanings given to them in the
Credit Agreement.

                The Assignor identified on Schedule 1 hereto (the "Assignor")
and the Assignee identified on Schedule 1 hereto (the "Assignee") agree as
follows:

                1.      The Assignor hereby irrevocably sells and assigns to the
Assignee without recourse to the Assignor, and the Assignee hereby irrevocably
purchases and assumes from the Assignor without recourse to the Assignor, as of
the Effective Date (as defined below), the interest set forth on Schedule 1
hereto (the "Assigned Interest") in and to the Assignor's rights and obligations
under the Credit Agreement with respect to those revolving credit facility
contained in the Credit Agreement (the "Assigned Facility") in a principal
amount and/or commitment amount for the Assigned Facility as set forth on
Schedule 1 hereto.

                2.      The Assignor (a) makes no representation or warranty and
assumes no responsibility with respect to any statements, warranties or
representations made in or in connection with the Credit Agreement or with
respect to the execution, legality, validity, enforceability, genuineness,
sufficiency or value of the Credit Agreement, any other Loan Document or any
other instrument or document furnished pursuant thereto, other than that the
Assignor is the legal and beneficial owner of the interest being assigned by it
hereunder, it has not created any adverse claim upon the interest being assigned
by it hereunder and that such interest is free and clear of any such adverse
claim; (b) makes no representation or warranty and assumes no responsibility
with respect to the financial condition of the Company, any of its Subsidiaries,
any other obligor or the performance or observance by the Company, any of its
Subsidiaries, any other obligor of any of their respective obligations under the
Credit Agreement or any document executed in connection therewith or any other
instrument or document
<PAGE>   98

furnished pursuant hereto or thereto; and (c) attaches any Notes held by it
evidencing the Assigned Facility and (i) requests that the Administrative Agent,
upon request by the Assignee, exchange any attached Notes for a new Note payable
to the Assignee and (ii) if the Assignor has retained any interest in the
Assigned Facility, requests that the Administrative Agent exchange any attached
Notes for a new Note payable to the Assignor, in each case in amounts which
reflect the assignment being made hereby (and after giving effect to any other
assignments which have become effective on the Effective Date).

                3.      The Assignee (a) represents and warrants that it is
legally authorized to enter into this Assignment and Acceptance; (b) confirms
that it has received a copy of the Credit Agreement, together with copies of the
financial statements delivered pursuant to Sections 5.01 thereof and such other
documents and information as it has deemed appropriate to make its own credit
analysis and decision to enter into this Assignment and Acceptance; (c) agrees
that it will, independently and without reliance upon the Assignor, 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 action under the Credit Agreement or
any other instrument or document furnished pursuant hereto or thereto; (d)
appoints and authorizes the Administrative Agent to take such action as agent on
its behalf and to exercise such powers and discretion under the Credit Agreement
or any other instrument or document furnished pursuant hereto or thereto as are
delegated to the Administrative Agent by the terms thereof, together with such
powers as are incidental thereto; and (e) agrees that it will be bound by the
provisions of the Credit Agreement and will perform in accordance with its terms
all the obligations which by the terms of the Credit Agreement are required to
be performed by it as a Lender including, if it is organized under the laws of a
jurisdiction outside the United States, its obligation pursuant to Section 2.15
of the Credit Agreement.

                4.      The effective date of this Assignment and Acceptance
shall be the date set forth on Schedule 1 hereto (the "Effective Date").
Following the execution of this Assignment and Acceptance, it will be delivered
to the Administrative Agent for acceptance by them and recording by the
Administrative Agent pursuant to the Credit Agreement, effective as of the
Effective Date (which shall not, unless otherwise agreed to by the
Administrative Agent, be earlier than five Business Days after the date of such
acceptance and recording by the Administrative Agent).

                5.      Upon such acceptance and recording, from and after the
Effective Date, the Administrative Agent shall make all payments in respect of
the Assigned Interest (including payments of principal, interest, fees and other
amounts) to the Assignee whether such amounts have accrued prior to the
Effective Date or accrue on or subsequent to the Effective Date. The Assignor
and the Assignee shall make all appropriate adjustments in payments by the
Administrative Agent for periods prior to the Effective Date or with respect to
the making of this assignment directly between themselves.

                                   EXHIBIT A-2

<PAGE>   99

                6.      From and after the Effective Date, (a) the Assignee
shall be a party to the Credit Agreement and, to the extent provided in this
Assignment and Acceptance, have the rights and obligations of a Lender
thereunder and under the other documents executed in connection therewith and
shall be bound by the provisions thereof and (b) the Assignor shall, to the
extent provided in this Assignment and Acceptance, relinquish its rights and be
released from its obligations under the Credit Agreement.

                7.      This Assignment and Acceptance shall be governed by and
construed in accordance with the laws of the State of New York.

                IN WITNESS WHEREOF, the parties hereto have caused this
Assignment and Acceptance to be executed as of the date first above written by
their respective duly authorized officers on Schedule 1 hereto.

                                  EXHIBIT A-3

<PAGE>   100

                                   SCHEDULE 1

-------------------------------------------------------------------------------
Name of Assignor:

Name of Assignee:

Effective Date of Assignment:

<TABLE>
<CAPTION>
--------------------------------------------------------------
    Principal/Commitment             Commitment Percentage
       Amount Assigned                     Assigned
--------------------------------------------------------------
<S>                            <C>
         $----------                      $----------
--------------------------------------------------------------

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

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

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

</TABLE>

<TABLE>
<CAPTION>

[NAME OF ASSIGNEE]                  [NAME OF ASSIGNOR]

<S>                                <C>
By:                                 By:
   -------------------------           ----------------------
        Title:                            Title:

Accepted:

THE CHASE MANHATTAN BANK,
as Administrative Agent

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

Consented to By:

AMERADA HESS CORPORATION

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

By:
   --------------------------
</TABLE>

<PAGE>   101
Title:

                                                                       EXHIBIT B
                                               TO THIRD AMENDED AND RESTATED
                                                            CREDIT AGREEMENT

                             FORM OF NON-NEGOTIABLE
                               REVOLVING LOAN NOTE

U.S.$___________                                              New York, New York
                                                             __________ __, 2001

               FOR VALUE RECEIVED, the undersigned, AMERADA HESS CORPORATION, a
Delaware corporation (the "Borrower"), hereby unconditionally promises to pay to
the order of__________ (the "Lender") on the dates and in the manner set forth
in Sections 2.08 and 2.16 of the Credit Agreement (as defined below) referred to
below at the office of the Administrative Agent set forth in Section 2.16 of the
Credit Agreement in immediately available funds, on the Maturity Date (as
defined in the Credit Agreement) the principal amount of (a) _________ U.S.
DOLLARS (U.S.$_____), or (b) the aggregate unpaid principal amount of all
Revolving Loans made by the Lender to the Borrower pursuant to subsection 2.03
of such Credit Agreement. The Borrower further agrees to pay interest in like
money at such office on the unpaid principal amount hereof from time to time
outstanding at the rates and on the dates specified in Section 2.11 of such
Credit Agreement.

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

               This Note (a) is one of the Notes referred to in the "Facility B"
Third Amended and Restated Credit Agreement, dated as of January 23, 2001 (as
amended, supplemented or otherwise modified from time to time, the "Credit
Agreement"), among the Borrower, the Lender, the other banks and financial
institutions from time to time parties thereto, Goldman Sachs Credit Partners
L.P., as Joint Book Runner, Joint Lead Arranger and sole Syndication Agent,
Chase Securities Inc., as Joint Book Runner and Joint Lead Arranger, Bank of
America, N.A., as Co-Documentation Agent and Arranger, Citibank, N.A., as
Co-Documentation Agent and

<PAGE>   102

Arranger, Barclays Bank PLC, as Co-Documentation Agent and Arranger and The
Chase Manhattan Bank, as Administrative Agent, (b) is subject to the provisions
of the Credit Agreement and (c) is subject to optional and mandatory prepayment
in whole or in part as provided in the Credit Agreement.

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

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

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

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

                                        AMERADA HESS CORPORATION

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

                                  EXHIBIT B-2

<PAGE>   103

                                                                      Schedule A
                                                                         to Note

               ABR LOANS, CONVERSIONS AND REPAYMENTS OF ABR LOANS

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------
       Date          Amount of ABR       Amount          Amount of      Amount of ABR      Unpaid       Notation Made
                         Loans        Converted to      Principal of        Loans         Principal          By
                                        ABR Loans        ABR Loans      Converted to      Balance of
                                                          Repaid         Eurodollar       ABR Loans
                                                                           Loans
-----------------------------------------------------------------------------------------------------------------------
<S>                 <C>              <C>               <C>             <C>                <C>           <C>
-----------------------------------------------------------------------------------------------------------------------

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

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

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

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

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

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

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

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

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

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

-----------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>   104

                                                                      Schedule B
                                                                         to Note

 EURODOLLAR LOANS, CONTINUATIONS, CONVERSIONS AND REPAYMENTS OF EURODOLLAR LOANS

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
   Date         Amount of           Amount       Interest Period      Amount of        Amount of          Unpaid        Notation
             Eurodollar Loans    Converted to     and Eurodollar    Principal of       Eurodollar       Principal       Made By
                               Eurodollar Loans     Rate with        Eurodollar     Loans Converted     Balance of
                                                 Respect Thereto    Loans Repaid      to ABR Loans      Eurodollar
                                                                                                          Loans
-----------------------------------------------------------------------------------------------------------------------------------
<S>         <C>               <C>               <C>                <C>              <C>               <C>              <C>
-----------------------------------------------------------------------------------------------------------------------------------

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

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

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

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

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

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

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

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

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

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

-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>   105

                                                                       EXHIBIT C
                                                   TO THIRD AMENDED AND RESTATED
                                                                CREDIT AGREEMENT

                            AMERADA HESS CORPORATION
                           1185 Avenue of the Americas
                            New York, New York 10036

J. BARCLAY COLLINS, II
Executive Vice President
  and General Counsel
(212) 536-8577
FAX:  (212) 536-8339

                                                   January 23, 2001

Goldman Sachs Credit Partners L.P.,
as Joint Lead Arranger, Joint Book Runner and
Sole Syndication Agent
85 Broad Street
New York, NY  10004

Chase Securities Inc.,
as Joint Lead Arranger and Joint Book Runner
270 Park Avenue
New York, New York 10017

The Chase Manhattan Bank
as Administrative Agent
270 Park Avenue
New York, New York 10017

The Lenders party to the
   Credit Agreements referred to below from time to time

Ladies and Gentlemen:

               I am the general counsel to Amerada Hess Corporation, a Delaware
corporation (the "Company"), and have acted as such in connection with the
preparation, execution and delivery of (i) the Third Amended and Restated Credit
Agreement, dated as of January 23, 2001 (the "Facility A Credit Agreement"),
among the Company, the several banks and other financial

<PAGE>   106

institutions from time to time parties thereto (the "Lenders"), Goldman Sachs
Credit Partners L.P., as joint book runner, joint lead arranger and sole
syndication agent (in such capacity, the "Syndication Agent"), Chase Securities
Inc., as joint book runner and joint lead arranger, Bank of America, N.A., as
co-documentation agent and arranger, Citibank, N.A., as co-documentation agent
and arranger, Barclays Bank PLC, as co-documentation agent and arranger and The
Chase Manhattan Bank, as administrative agent (in such capacity, the
"Administrative Agent) and (ii) the Third Amended and Restated Credit Agreement,
dated as of January 23, 2001 (the "Facility B Credit Agreement" and together
with the Facility A Credit Agreement, the "Credit Agreements"), among the
Company, the several banks and other financial institutions from time to time
parties thereto (the "Lenders"), Goldman Sachs Credit Partners L.P., as joint
book runner, joint lead arranger and sole syndication agent (in such capacity,
the "Syndication Agent"), Chase Securities Inc., as joint book runner and joint
lead arranger, Bank of America, N.A., as co-documentation agent and arranger,
Citibank, N.A., as co-documentation agent and arranger, Barclays Bank PLC, as
co-documentation agent and arranger and The Chase Manhattan Bank, as
administrative agent (in such capacity, the "Administrative Agent).

                The opinions expressed below are furnished to you pursuant to
Section 4.01 of the Credit Agreements. Unless otherwise defined herein, terms
defined in the Credit Agreements and used herein shall have the meanings given
to them in the Credit Agreements.

                In arriving at the opinions expressed below, I have examined the
following documents:

                (a)     the Credit Agreements and the Notes signed by the
Company (the Credit Agreements and such Notes being hereinafter referred to
collectively as the "Transaction Documents"); and

                (b)     such corporate documents and records of the Company and
such other instruments and certificates of public officials, officers and
representatives of the Company and other Persons as I have deemed necessary or
appropriate for the purpose of the opinion.

                In arriving at the opinions expressed below, I have made such
investigations of law as I have deemed appropriate as a basis for such opinions.

                In rendering the opinions expressed below, I have (a) relied as
to certain matters of fact on certificates of the officers of the Company, (b)
assumed, with your permission, without independent investigation or inquiry, (i)
the authenticity of all documents submitted as originals, (ii) the genuineness
of all signatures on all documents that I have examined (other than those of the
Company and officers of the Company) and (iii) the conformity to authentic
originals of documents submitted as certified, conformed or photostatic copies.

                When the opinions expressed below are stated "to the best of my
knowledge," I have made reasonable and diligent investigation of the subject
matters of such opinions and have

                                  EXHIBIT C-2

<PAGE>   107

no reason to believe that there exist any facts or other information that would
render such opinions incomplete or incorrect.

               Based upon and subject to the foregoing, I am of the opinion
that:

                1.      The Company is duly incorporated and is validly existing
as a corporation in good standing under the laws of the jurisdiction of its
incorporation.

                2.      The Company has the corporate power and authority to
own, lease and operate its properties and to conduct the business in which it is
currently engaged and is duly qualified to transact business as a foreign
corporation or other legal entity and is in good standing or appropriately
qualified in each jurisdiction where its ownership, leasing, or operation of
property or the conduct of its business requires such qualification, except to
the extent that the failure to have such power and authority and the failure to
be so qualified and in good standing does not, in the aggregate, constitute a
Material Adverse Effect.

                3.      The Company has the corporate power and authority to
make, deliver and perform its obligations under each Transaction Document and to
borrow under the Credit Agreements. The Company has taken all necessary
corporate action to authorize the borrowings on the terms and conditions of the
Credit Agreements and the other Transaction Documents, and to authorize the
execution, delivery and performance of the Credit Agreements and each other
Transaction Document. No consent or authorization of, notice to, filing with or
other act by or in respect of, any Governmental Authority or any other Person is
required in connection with (i) the borrowings by the Company under the Credit
Agreements or (ii) the execution, delivery and performance by the Company, or
the validity or enforceability against the Company, of each Transaction
Document.

                4.      Each Transaction Document has been duly executed and
delivered on behalf of the Company. Each Transaction Document constitutes a
legal, valid and binding obligation of the Company, enforceable against it in
accordance with its terms.

                5.      The execution and delivery of each Transaction Document
by the Company, the performance by the Company of its obligations thereunder,
the consummation of the transactions contemplated thereby, the compliance by the
Company with any of the provisions thereof, the borrowings by the Company under
the Credit Agreements and the use of proceeds thereof, all as provided therein,
(a) will not violate (i) any requirement of law or any regulation or order of
any Governmental Authority applicable to the Company or (ii) any Contractual
Obligation of the Company or any of its Subsidiaries and (b) will not result in,
or require, the creation or imposition of any Lien on any of its or their
respective assets or properties pursuant to any such requirement of law (or
regulation or order) or Contractual Obligation.

                6.      No litigation, investigation or proceeding of or before
any arbitrator or Governmental Authority is pending or, to the best of my
knowledge, threatened by or against the Company or any of its Subsidiaries or
against any of its or their respective properties or revenues (a)

                                  EXHIBIT C-3
<PAGE>   108

with respect to the Credit Agreements or any of the other Transaction Documents
or (b) which would constitute a Material Adverse Effect.

                7.      To the best of my knowledge, neither the Company nor any
of its Subsidiaries is in default under or with respect to any Contractual
Obligations in any respect which would constitute a Material Adverse Effect.

                8.      The Company 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. The Company is not subject to regulation under
any Federal or state statute or regulation which limits its ability to incur
Indebtedness.

                The opinions set forth in the second sentence of paragraph 4
above are subject to the effects of bankruptcy, insolvency, fraudulent
conveyance, reorganization, moratorium and other similar laws relating to or
affecting creditors' rights generally, general equitable principles (whether
considered in a proceeding in equity or at law), including, without limitation,
concepts of materiality and reasonableness and an implied covenant of good faith
and fair dealing.

                I am a member of the bar of the State of New York and the
opinions expressed herein are based upon and are limited to the laws of such
state, the General Corporation Law of the State of Delaware and the Federal laws
of the United States of America.

                This opinion has been rendered solely for your benefit and for
the benefit of your permitted assignees pursuant to Section 9.04 of the Credit
Agreements in connection with the Credit Agreements and the other Transaction
Documents and the transactions contemplated thereby and may not be used,
circulated, quoted, relied upon or otherwise referred to for any other purpose
without my prior written consent; provided, however, that this opinion may be
delivered to your regulators, accountants, attorneys and other professional
advisers and may be used in connection with any legal or regulatory proceeding
relating to the subject matter of this opinion.

                                                   Very truly yours,

                                                   s/s J. Barclay Collins
                                                   -----------------------
                                                   J. Barclay Collins

                                  EXHIBIT C-4<PAGE>   1
                                                                   Exhibit 10.18

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

                              AMENDED AND RESTATED

                                CREDIT AGREEMENT

                          DATED AS OF NOVEMBER 22, 2000

                                  BY AND AMONG

                                   LEXENT INC.

                                       AND

                             EUROPEAN AMERICAN BANK,
                             AS ADMINISTRATIVE AGENT

                                       AND

                              THE BANK OF NEW YORK,
                             AS DOCUMENTATION AGENT

                                       AND

                            THE LENDERS PARTY HERETO

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

                             EUROPEAN AMERICAN BANK
                                AS LEAD ARRANGER

<PAGE>   2

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                                            <C>
ARTICLE I
         DEFINITIONS AND ACCOUNTING TERMS.........................................................................1
         SECTION 1.01.              Definitions...................................................................1
         SECTION 1.02.              Terms Generally..............................................................12

ARTICLE II LOANS.................................................................................................13
         SECTION 2.01.              Revolving Credit Loans.......................................................13
         SECTION 2.02.              Revolving Credit Note........................................................14
         SECTION 2.03.              Acquisition Term Loans.......................................................14

ARTICLE III
         PROVISIONS RELATING TO ALL EXTENSIONS OF CREDIT;
         FEES AND PAYMENTS.......................................................................................15
         SECTION 3.01.              Interest Rate; Continuation and Conversion of Loans..........................15
         SECTION 3.02.              Use of Proceeds..............................................................17
         SECTION 3.03.              Prepayments..................................................................17
         SECTION 3.04.              Fees.........................................................................18
         SECTION 3.05.              Inability to Determine Interest Rate.  ......................................18
         SECTION 3.06.              Illegality.  ................................................................19
         SECTION 3.07.              Increased Costs..............................................................19
         SECTION 3.08.              Indemnity. ..................................................................20
         SECTION 3.09.              Taxes........................................................................21
         SECTION 3.10.              Pro Rata Treatment and Payments..............................................22

ARTICLE IV
         REPRESENTATIONS AND WARRANTIES..........................................................................23
         SECTION 4.01.              Organization, Powers.........................................................23
         SECTION 4.02.              Authorization of Borrowing, Enforceable Obligations..........................24
         SECTION 4.03.              Financial Condition..........................................................24
         SECTION 4.04.              Taxes........................................................................25
         SECTION 4.05.              Title to Properties..........................................................25
         SECTION 4.06.              Litigation...................................................................25
         SECTION 4.07.              Agreements...................................................................25
         SECTION 4.08.              Compliance with ERISA........................................................26
         SECTION 4.09.              Federal Reserve Regulations; Use of Proceeds.................................26
         SECTION 4.10.              Approvals....................................................................26
         SECTION 4.11.              Subsidiaries.................................................................27
         SECTION 4.12.              Hazardous Materials..........................................................27
         SECTION 4.13.              Investment Company Act.......................................................27
</TABLE>

                                       i

<PAGE>   3

<TABLE>
<S>                                                                                                            <C>
         SECTION 4.14.              No Default...................................................................27
         SECTION 4.15.              Material Contracts...........................................................27
         SECTION 4.16.              Permits and Licenses.........................................................27
         SECTION 4.17.              Compliance with Law..........................................................27
         SECTION 4.18.              Security Agreements..........................................................27
         SECTION 4.19.              Pledge Agreement.............................................................28
         SECTION 4.20.              Disclosure...................................................................28

ARTICLE V
         CONDITIONS OF LENDING...................................................................................28
         SECTION 5.01.              Conditions to Loans..........................................................28
         SECTION 5.02.              Conditions to all Extensions of Credit.......................................30
         SECTION 5.03.              Conditions to each Acquisition Term Loan.....................................31

ARTICLE VI
         AFFIRMATIVE COVENANTS...................................................................................33
         SECTION 6.01.              Existence, Properties, Insurance.............................................33
         SECTION 6.02.              Payment of Indebtedness and Taxes............................................33
         SECTION 6.03.              Financial Statements, Reports, etc...........................................34
         SECTION 6.04.              Books and Records; Access to Premises........................................35
         SECTION 6.05.              Notice of Adverse Change.....................................................36
         SECTION 6.06.              Notice of Default............................................................36
         SECTION 6.07.              Notice of Litigation.........................................................36
         SECTION 6.08.              Notice of Default in Other Agreements........................................36
         SECTION 6.09.              Notice of ERISA Event........................................................37
         SECTION 6.10.              Notice of Environmental Law Violations.......................................37
         SECTION 6.11.              Notice Regarding Material Contracts..........................................37
         SECTION 6.12.              Compliance with Applicable Laws..............................................37
         SECTION 6.13.              Subsidiaries.................................................................37
         SECTION 6.14.              Environmental Laws...........................................................38
         SECTION 6.15.              Further Assurances...........................................................38

ARTICLE VII
         NEGATIVE COVENANTS......................................................................................38
         SECTION 7.01.              Liens........................................................................38
         SECTION 7.02.              Indebtedness.................................................................40
         SECTION 7.03.              Guaranties...................................................................41
         SECTION 7.04.              Sale of Assets...............................................................41
         SECTION 7.05.              Sales of Receivables.  ......................................................42
         SECTION 7.06.              Loans and Investments........................................................42
         SECTION 7.07.              Nature of Business...........................................................42
         SECTION 7.08.              Sale and Leaseback...........................................................42
         SECTION 7.09.              Federal Reserve Regulations..................................................42
</TABLE>

                                       ii

<PAGE>   4

<TABLE>
<S>                                                                                                            <C>
         SECTION 7.10.              Accounting Policies and Procedures...........................................42
         SECTION 7.11.              Hazardous Materials..........................................................42
         SECTION 7.12.              Limitations on Fundamental Changes...........................................43
         SECTION 7.13.              Financial Covenants..........................................................43
         SECTION 7.14.              Subordinated Debt............................................................44
         SECTION 7.15.              Dividends....................................................................44
         SECTION 7.16.              Transactions with Affiliates.................................................44
         SECTION 7.17.              Impairment of Security Interest..............................................45
         SECTION 7.18.              Negative Pledge..............................................................45

ARTICLE VIII
         EVENTS OF DEFAULT.......................................................................................45
         SECTION 8.01.              Events of Default............................................................45

ARTICLE IX
         THE AGENTS..............................................................................................48
         SECTION 9.01.              Appointment, Powers and Immunities...........................................48
         SECTION 9.02.              Reliance by Agents...........................................................48
         SECTION 9.03.              Events of Default............................................................49
         SECTION 9.04.              Rights as a Lender...........................................................49
         SECTION 9.05.              Indemnification..............................................................49
         SECTION 9.06.              Non-Reliance on Agents and Other Lenders.....................................50
         SECTION 9.07.              Failure to Act...............................................................50
         SECTION 9.08.              Resignation of an Agent......................................................50
         SECTION 9.09.              Sharing of Collateral and Payments...........................................51

ARTICLE X
         MISCELLANEOUS...........................................................................................51
         SECTION 10.01.             Notices......................................................................51
         SECTION 10.02.             Effectiveness; Survival......................................................52
         SECTION 10.03.             Expenses.....................................................................53
         SECTION 10.04.             Amendments and Waivers.......................................................53
         SECTION 10.05.             Successors and Assigns; Participations.......................................54
         SECTION 10.06.             No Waiver; Cumulative Remedies...............................................57
         SECTION 10.07.             APPLICABLE LAW...............................................................57
         SECTION 10.08.             SUBMISSION TO JURISDICTION...................................................57
         SECTION 10.09.             Severability.................................................................58
         SECTION 10.10.             Right of Setoff..............................................................58
         SECTION 10.11.             Headings.....................................................................58
         SECTION 10.12.             Construction.................................................................59
         SECTION 10.13.             Counterparts.................................................................59
</TABLE>

                                      iii

<PAGE>   5

SCHEDULES

Schedule I        -     Subsidiaries
Schedule II       -     Existing Liens
Schedule III      -     Existing Indebtedness
Schedule IV       -     Existing Guarantees
Schedule V        -     Material Contracts

EXHIBITS

Exhibit A-1       -     Form of Amended and Restated Revolving Credit Note
Exhibit A-2       -     Form of Revolving Credit Note
Exhibit B         -     Form of Acquisition Term Note
Exhibit C-1       -     Form of Company Security Agreement
Exhibit C-2       -     Form of Corporate Guarantor Security Agreement
Exhibit D         -     Form of Corporate Guaranty
Exhibit E         -     Form of Opinion of Counsel
Exhibit F         -     Form of Pledge Agreement
Exhibit G         -     Form of Assignment and Acceptance Agreement

                                       iv

<PAGE>   6

         AMENDED AND RESTATED CREDIT AGREEMENT dated as of November 22, 2000, by
and among LEXENT INC., a Delaware corporation (f/k/a National Network
Technologies, Inc.) (the "Company"), the LENDERS which from time to time are
parties to this Agreement (each a "Lender" and collectively, the "Lenders"),
EUROPEAN AMERICAN BANK, as Administrative Agent for the Lenders, and THE BANK OF
NEW YORK, as Documentation Agent for the Lenders.

                                  INTRODUCTION

         The Company, certain of the Lenders and the Administrative Agent are
parties to that certain Credit Agreement dated as of June 29, 1999 (as amended
from time to time, the "Original Credit Agreement").

         The Company has requested the Lenders to amend and restate the Original
Credit Agreement and the Lenders are prepared to do so on the terms and
conditions set forth herein.

         Accordingly, the parties hereto amend and restate the Original Credit
Agreement in its entirety and agree as follows:

                                    RECITALS

         The Company has requested the Lenders to extend credit to the Company
from time to time and the Lenders are willing to extend such credit to the
Company, subject to the terms and conditions hereinafter set forth.

         Accordingly, the parties hereto agree as follows:

                                    ARTICLE I
                        DEFINITIONS AND ACCOUNTING TERMS

         SECTION 1.01. DEFINITIONS. As used herein, the following words and
terms shall have the following meanings:

         "Acquisition Term Loans" shall have the meaning assigned to such term
in Section 2.03.

         "Acquisition Term Note" shall have the meaning set forth in Section
2.03.

         "Adjusted Libor Loans" shall mean Revolving Credit Loans at such time
as they are made and/or being maintained at a rate of interest based upon
Reserve Adjusted Libor.

         "Administrative Agent" shall mean EAB in its capacity as administrative
and collateral agent for the Lenders under this Agreement or its successor
Administrative Agent permitted pursuant to Section 9.08.

<PAGE>   7

         "Affiliate" shall mean, with respect to a specified Person, another
Person which, directly or indirectly, controls or is controlled by or is under
common control with such specified Person. For the purpose of this definition,
"control" of a Person shall mean the power, direct or indirect, to direct or
cause the direction of the management or policies of such Person whether through
the ownership of voting securities, by contract or otherwise; provided that, in
any event, any Person who owns directly or indirectly 10% or more of the
securities having ordinary voting power for the election of directors or other
governing body of a corporation or 10% or more of the partnership or other
ownership interest of any Person (other than as a limited partner of such other
Person) will be deemed to control such corporation or other Person.

         "Agents" shall mean, collectively, the Administrative Agent and the
Documentation Agent, and each is individually an "Agent".

         "Aggregate Outstandings" shall mean, on the date of determination
thereof, the sum of (i) the aggregate outstanding principal amount of the
Revolving Credit Loans, plus (ii) the aggregate outstanding principal amount of
the Acquisition Term Loans at such time.

         "Agreement" shall mean this Amended and Restated Credit Agreement,
dated as of November 22, 2000, as it may hereafter be amended, restated,
supplemented or otherwise modified from time to time.

         "Assignment and Acceptance Agreement" shall mean an Assignment and
Acceptance Agreement substantially in the form of Exhibit G attached hereto.

         "Borrowing Date" shall mean, with respect to any Loan, the date on
which such Loan is disbursed to the Company.

         "Business Day" shall mean (a) any day not a Saturday, Sunday or legal
holiday, on which banks in New York City are open for business; and (b) as it
relates to the payment, determination, funding, or notice to be made or given in
connection with any Adjusted Libor Loan, any day specified in clause (a) on
which trading is carried on by and between banks in Dollar deposits in the
London interbank eurodollar market.

         "Capital Expenditures" shall mean additions to property and equipment
of the Company and its consolidated Subsidiaries, other than property and
goodwill acquired in connection with a Permitted Financed Acquisition or a
Permitted Non-Financed Acquisition, which, in conformity with Generally Accepted
Accounting Principles, are included as "additions to property, plant or
equipment" or similar items which would be reflected in the consolidated
statement of cash flow of the Company, including, without limitation, property
and equipment which are the subject of Capital Leases.

         "Capital Lease" shall mean any lease the obligations of which are
required to be capitalized on the balance sheet of a Person in accordance with
Generally Accepted Accounting Principles.

                                       2
<PAGE>   8

         "Chief Financial Officer" shall mean the Chief Financial Officer of the
Company.

         "Closing Date" shall mean November 22, 2000.

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

         "Commitment Proportion" shall mean, with respect to each Lender, the
proportion its Credit Commitment bears to the Total Credit Commitment.

         "Company" shall have the meaning set forth in the preamble hereto.

         "Consolidated EBITDA" shall mean, for the Company and its consolidated
Subsidiaries for any period, the Consolidated Net Income for such period, plus
the sum, without duplication, of (a) gross interest expense, (b) depreciation
and amortization expenses, (c) all income taxes to any government or
governmental instrumentality expensed on the Company's and any Subsidiary's
books (whether paid or accrued), and (d) any non-cash charges attributable to
options outstanding to purchase shares of the Company minus the sum of (a) all
extraordinary or unusual gains and (b) all non-cash income or gain attributable
to options outstanding to purchase shares of the Company, in each case
determined on a consolidated basis for the Company and its consolidated
Subsidiaries in accordance with Generally Accepted Accounting Principles,
applied on a consistent basis. All of the foregoing categories shall be
calculated over the four fiscal quarters next preceding the date of calculation
thereof.

         "Consolidated Fixed Charge Ratio" shall mean, for any period, the ratio
of (a) the sum of (i) Consolidated EBITDA plus (ii) Consolidated Rent Expense
plus (iii) operating lease expense, less Capital Expenditures to (b) the sum of
(i) Consolidated Interest Expense plus (ii) the Current Portion of Long Term
Debt plus (iii) Consolidated Rent Expense and (iv) operating lease expense. All
the foregoing categories shall be calculated over the four fiscal quarters next
preceding the date of calculation thereof.

         "Consolidated Interest Expense" shall mean for any period the gross
interest expense of the Company and its consolidated Subsidiaries for such
period determined in accordance with Generally Accepted Accounting Principles
applied on a consistent basis that is required to be or is paid in cash.

         "Consolidated Leverage Ratio" shall mean the ratio of (a) total
consolidated liabilities (excluding Subordinated Debt) of the Company and its
consolidated Subsidiaries to (b) Consolidated Net Worth determined in accordance
with Generally Accepted Accounting Principles, applied on a consistent basis.

         "Consolidated Net Income" shall mean, for any period, the net income
(or net loss) of the Company and its consolidated Subsidiaries for such period
determined in accordance with Generally Accepted Accounting Principles applied
on a consistent basis.

                                       3
<PAGE>   9

         "Consolidated Net Worth" shall mean (a) total consolidated assets of
the Company and its consolidated Subsidiaries, less (b) total consolidated
liabilities (excluding Subordinated Debt) of the Company and its consolidated
Subsidiaries, in each case, determined in accordance with Generally Accepted
Accounting Principles, applied on a consistent basis.

         "Consolidated Rent Expense" shall mean for any period rent expense of
the Company and its consolidated Subsidiaries for such period determined in
accordance with Generally Accepted Accounting Principles, less all rents
reimbursable to the Company or any of its consolidated Subsidiaries by their
customers pursuant to a contractual obligation.

         "Corporate Guarantors" shall mean, collectively, National Network
Technologies, LLC, a Delaware limited liability company, Hugh O'Kane Electric
Co. LLC, a Delaware limited liability company, Lexent Services, Inc., a Delaware
corporation, HOK Datacom, Inc., a Delaware corporation, and each Person who,
from time to time, is required to execute a Corporate Guaranty in accordance
with Section 6.13.

         "Corporate Guaranty" shall mean a Corporate Guaranty in the form
attached hereto as Exhibit D to be executed by each Corporate Guarantor and by
any Person who may be required to execute and deliver the same pursuant to
Section 6.13, as each of the same may hereafter be amended, restated,
supplemented or otherwise modified from time to time.

         "Credit Commitment" shall mean, with respect to each Lender, the
obligation of such Lender to make Revolving Credit Loans and Acquisition Term
Loans to the Company in an aggregate amount not to exceed the amount set forth
opposite such Lender's name on the signature pages hereof under the caption
Credit Commitment or in the Assignment and Acceptance Agreement pursuant to
which such Lender becomes a Lender, as such amounts may be adjusted in
accordance with this Agreement.

         "Credit Commitment Period" shall mean the period from and including the
date hereof to but not including the Credit Commitment Termination Date.

         "Credit Commitment Termination Date" shall mean November 22, 2003 or
such earlier date as the Credit Commitment shall terminate as provided herein.

         "Current Portion of Long Term Debt" means that portion of long term
indebtedness of the Company and its consolidated Subsidiaries which is required
to be paid in the immediately succeeding twelve month period, as determined in
accordance with Generally Accepted Accounting Principles consistently applied,
but excluding the Revolving Credit Loans.

         "Default" shall mean any condition or event which upon notice, lapse of
time or both would constitute an Event of Default.

                                       4
<PAGE>   10

         "Documentation Agent" shall mean The Bank of New York in its capacity
as documentation agent under this Agreement or its successor Documentation Agent
permitted pursuant to Section 9.08.

         "Dollar" and the symbol "$" shall mean lawful money of the United
States of America.

         "EAB" shall mean European American Bank.

         "Eligible Acquisition" shall mean the acquisition by the Company or any
Corporate Guarantor of more than 50% of the capital stock, membership interests
or other ownership interests of a Person engaged in the same or similar business
as the business of the Company or such Corporate Guarantor or the purchase of
all or substantially all of the assets used by such Person in connection with
such business or assets comprising a line of business or a division of such
Person, provided in each case, (i) no Default or Event of Default shall have
occurred and be continuing or would occur after giving effect to such
acquisition, including, without limitation, an Event of Default arising from
failure to comply with the covenants set forth in Section 7.13, and (ii) in the
event of an acquisition of stock or membership interests of a Person, the Board
of Directors or other governing body of such Person shall have recommended the
sale by its shareholders or its members of their equity interest to the Company
or such Corporate Guarantor, as the case may be.

         "Eligible Cash Equivalent Investments" shall mean (a) direct
obligations of the United States of America or any governmental agency thereof
which are fully guaranteed by the United States of America, provided that such
obligations mature within one year from the date of acquisition thereof; or (b)
dollar denominated certificates of time deposit maturing within one year issued
by any bank organized and existing under the laws of the United States or any
state thereof and having aggregate capital and surplus in excess of
$1,000,000,000; or (c) money market mutual funds having assets in excess of
$2,500,000,000; or (d) commercial paper rated not less than P-1 or A-1 or their
equivalent by Moody's Investors Service, Inc. or Standard & Poor's Ratings
Services, respectively; or (e) tax exempt securities of a U.S. issuer rated A or
better by Standard and Poor's Ratings Services or Moody's Investors Service,
Inc.

         "Environmental Law" shall mean any law, ordinance, rule, regulation, or
policy having the force of law of any Governmental Authority relating to
pollution or protection of the environment or to the use, handling,
transportation, treatment, storage, disposal, release or discharge of Hazardous
Materials, including, without limitation, the Comprehensive Environmental
Response, Compensation and Liability Act of 1980, as amended (42 U.S.C. Sections
9601, et seq.), the Hazardous Materials Transportation Act, as amended (49
U.S.C. Sections 1801, et seq.), the Resource Conservation and Recovery Act, as
amended (42 U.S.C. Sections 6901, et seq.) and the rules and regulations
promulgated pursuant thereto.

         "ERISA" shall mean the Employee Retirement Income Security Act of 1974,
as amended from time to time.

                                       5
<PAGE>   11

         "ERISA Affiliate" shall mean each person (as defined in Section 3(9) of
ERISA) which together with the Company or any Affiliate of the Company would be
deemed to be a member of the same "controlled group" within the meaning of
Section 414(b), (c), (m) or (o) of the Code.

         "Eurocurrency Reserve Requirement" shall mean a fraction (expressed as
a decimal), the numerator of which is the number one and the denominator of
which is the number one minus the aggregate (without duplication) of the rates
(expressed as a decimal) of reserve requirements in effect on such day
(including, without limitation, basic, supplemental, marginal and emergency
reserves, under any regulations of the Board of Governors of the Federal Reserve
System or any other governmental authority having jurisdiction with respect
thereto) as from time to time in effect, dealing with reserve requirements
prescribed for Eurocurrency funding (currently referred to as "Eurocurrency
liabilities" in Regulation D) maintained by a bank. For purposes hereof each
Adjusted Libor Loan shall be deemed to constitute a "Eurocurrency liability" as
defined in Regulation D, and subject to the reserve requirements of Regulation
D, without benefit of credit or proration, exemptions or offsets which might
otherwise be available to a Lender from time to time under Regulation D.

         "Event of Default" shall have the meaning set forth in Article VIII.

         "Executive Officer" shall mean any of the President, the Chief
Executive Officer, the Chief Operating Officer, the Chief Financial Officer or
the Secretary of the Company or any Corporate Guarantor, as applicable, and
their respective successors, if any, designated by the board of directors
thereof.

         "Final Maturity Date" shall mean November 22, 2005.

         "Fixed Rate Loans" shall mean, collectively, Adjusted Libor Loans and
Treasury Rate Loans.

         "Generally Accepted Accounting Principles" shall mean those generally
accepted accounting principles in the United States of America, as in effect
from time to time.

         "Governmental Authority" shall mean any nation or government, any
state, province, city or municipal entity or other political subdivision
thereof, and any governmental, executive, legislative, judicial, administrative
or regulatory agency, department, authority, instrumentality, commission, board
or similar body, whether federal, state, provincial, territorial, local or
foreign.

         "Hazardous Materials" shall mean any explosives, radioactive materials,
or other materials, wastes, substances, or chemicals regulated as toxic
hazardous or as a pollutant, contaminant or waste under any applicable
Environmental Law.

         "Indebtedness" shall mean, without duplication, as to any Person or
Persons (a) indebtedness for borrowed money; (b) indebtedness for the deferred
purchase price of property or services; (c) indebtedness evidenced by bonds,
debentures, term notes or other similar instruments;

                                       6
<PAGE>   12

(d) obligations and liabilities secured by a Lien upon property owned by such
Person, whether or not owing by such Person and even though such Person has not
assumed or become liable for the payment thereof; (e) obligations and
liabilities directly or indirectly guaranteed by such Person; (f) obligations or
liabilities created or arising under any conditional sales contract or other
title retention agreement with respect to property used and/or acquired by such
Person; (g) obligations of such Person as lessee under Capital Leases; (h) net
liabilities of such Person under foreign currency exchange agreements, as
calculated on a basis satisfactory to the Administrative Agent and in accordance
with accepted practice; and (i) all obligations, contingent or otherwise of such
Person as an account party or applicant in respect of letters of credit.

         "Interest Payment Date" shall mean (a) as to each Prime Rate Loan and
each Treasury Rate Loan, the first day of each month during the term hereof; (b)
as to each Adjusted Libor Loan, with respect to which the Company has selected
an Interest Period of one month, the last day of such Interest Period; (c) as to
each Adjusted Libor Loan with respect to which the Company has selected an
Interest Period of two, three or six months, the date which is one month from
the first day of such Interest Period, and on each one month anniversary
thereafter and the last day of such Interest Period; and (d) as to each Loan,
the date such Loan is paid in full or in part.

         "Interest Period" shall mean with respect to any Adjusted Libor Loan:

         (a) initially, the period commencing on the date such Adjusted Libor
Loan is made and ending one, two, three or six months thereafter, as selected by
the Company in its notice of borrowing or in its notice of conversion from
another Type of Loan to an Adjusted Libor Loan, in each case, in accordance with
the terms of Articles II and III hereof; and

         (b) thereafter, each period commencing on the last day of the next
preceding Interest Period applicable to such Adjusted Libor Loan and ending one,
two, three or six months thereafter, as selected by the Company by irrevocable
written notice to the Administrative Agent (which shall promptly notify each of
the Lenders) not later than 11:00 a.m. New York, New York time three Business
Days prior to the last day of the then current Interest Period with respect to
such Adjusted Libor Loan;

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

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

                           (ii) if the Company shall fail to give notice as
                  provided in clause (b) above, the Company shall be deemed to
                  have requested conversion of the affected Adjusted

                                       7
<PAGE>   13

                  Libor Loan to a Prime Rate Loan on the last day of the then
                  current Interest Period with respect to such Adjusted Libor
                  Loan;

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

                           (iv) no more than five (5) Interest Periods may exist
                  at any one time;

                           (v) the Company shall select Interest Periods so as
                  not to require a payment or prepayment of any Adjusted Libor
                  Loan during an Interest Period for such Adjusted Libor Loan;
                  and

                           (vi) no Revolving Credit Loan may be requested or
                  continued as, or converted to, an Adjusted Libor Loan with an
                  Interest Period that extends beyond the Credit Commitment
                  Termination Date.

         "Lenders" shall have the meaning set forth in the preamble hereto.

         "Lending Office" shall mean, for each Lender, the office specified
under such Lender's name on the signature pages hereof with respect to each
Loan, or such other office as such Lender may designate in writing from time to
time to the Company and the Administrative Agent with respect to such Loan.

         "Lien" shall mean any lien (statutory or otherwise), security interest,
mortgage, deed of trust, pledge, charge, conditional sale, title retention
agreement, Capital Lease or other encumbrance or similar right of others, or any
agreement to give any of the foregoing.

         "Loan Documents" shall mean, collectively, this Agreement, the Notes,
the Security Documents, the Corporate Guaranties, and each other agreement
executed in connection with the transactions contemplated hereby or thereby, as
each of the same may hereafter be amended, restated, supplemented or otherwise
modified from time to time.

         "Loans" shall mean, collectively, the Revolving Credit Loans and the
Acquisition Term Loans.

         "Material Adverse Effect" shall mean a material adverse effect upon (a)
the business, operations, property, prospects or condition (financial or
otherwise) of the Company or any Corporate Guarantor, or (b) the ability of the
Company or any Corporate Guarantor to perform in any material respect any
obligations under any Loan Document to which it is a party.

                                       8
<PAGE>   14

         "Material Contract" shall mean each contract, instrument or agreement
(a) to which the Company or any Corporate Guarantor is a party which is material
to the business, operations or condition (financial or otherwise), performance,
prospects, or properties of the Company or any Corporate Guarantor or (b) which
requires the payment during the term thereof in excess of $100,000, excluding
(i) leases for office, garage and warehouse space incurred in the ordinary
course of business, and (ii) employment agreements entered into in the ordinary
course of business.

         "Notes" shall mean, collectively, the Revolving Credit Notes and the
Acquisition Term Notes.

         "Obligations" shall mean all obligations, liabilities and indebtedness
of the Company to the Lenders and the Administrative Agent, whether now existing
or hereafter created, absolute or contingent, direct or indirect, due or not,
whether created directly or acquired by assignment or otherwise, arising under
or relating to this Agreement, the Notes or any other Loan Document including,
without limitation, all obligations, liabilities and indebtedness of the Company
with respect to the principal of and interest on the Loans, and all fees, costs,
expenses and indemnity obligations of the Company hereunder or under any other
Loan Document.

         "Original Lenders" shall mean EAB and State Bank of Long Island.

         "Participant" shall have the meaning set forth in Section 10.05(b).

         "Payment Office" shall mean the Administrative Agent's office located
at 335 Madison Avenue, New York, New York 10017, or such other office as the
Administrative Agent may designate from time to time.

         "PBGC" shall mean the Pension Benefit Guaranty Corporation established
pursuant to Section 4002 of ERISA, or any successor thereto.

         "Permitted Financed Acquisition" shall mean an Eligible Acquisition the
consideration for which is financed in whole or in part with the proceeds of an
Acquisition Term Loan.

         "Permitted Liens" shall mean the Liens specified in clauses (a) through
(k) of Section 7.01.

         "Permitted Non-Financed Acquisition" shall mean an Eligible Acquisition
which is not a Permitted Financed Acquisition; provided, however, that in the
event the aggregate consideration (as determined pursuant to Section 5.03(b))
payable in connection with such acquisition is greater than $5,000,000 then,
within ten (10) days after the date of consummation of such acquisition, the
Administrative Agent shall have received a certificate of an Executive Officer
of the Company certifying that the acquisition constituted an "Eligible
Acquisition"; provided, further, in the event the aggregate consideration
(determined pursuant to Section 5.03(b)) payable in connection with such
acquisition is greater than $20,000,000 then, in addition, the Company shall
further provide to the Administrative Agent within forty-five (45) days after
the date of consummation of such

                                       9
<PAGE>   15

acquisition the historical financial statements (to the extent available),
projections (to the extent available), pro forma financial statements and
acquisition documents described in clauses (f), (g), (h) and (i) of Section 5.03
with respect to such acquisition except that with respect to Section 5.03(i),
the last clause starting with the word "and" shall not apply.

         "Person" shall mean any natural person, corporation, limited liability
company, limited liability partnership, business trust, joint venture,
association, company, partnership or Governmental Authority.

         "Plan" shall mean any multi-employer or single-employer plan as defined
in Section 4001 of ERISA, which covers, or at any time during the five calendar
years preceding the date of this Agreement covered, employees of the Company,
any Corporate Guarantor or an ERISA Affiliate on account of such employees'
employment by the Company, any Corporate Guarantor or an ERISA Affiliate.

         "Pledge Agreement" shall mean the Pledge Agreement in the form attached
hereto as Exhibit F to be executed by the Company and each Corporate Guarantor,
as applicable, as the same may hereafter be amended, restated, supplemented or
otherwise modified from time to time.

         "Prime Rate" shall mean the rate per annum announced by the entity
which is the Administrative Agent from time to time as its prime rate in effect
at its principal office, each change in the Prime Rate to be effective on the
date such change is announced to become effective.

         "Prime Rate Loans" shall mean Revolving Credit Loans at such times as
they are being made and/or maintained at a rate of interest based on the Prime
Rate.

         "Regulation D" shall mean Regulation D of the Board of Governors of the
Federal Reserve System as the same may be amended or supplemented from time to
time.

         "Reportable Event" shall mean an event described in Section 4043(c) of
ERISA with respect to a Plan as to which the 30 day notice requirement has not
been waived by the PBGC.

         "Required Lenders" shall mean Lenders owed at least 66 2/3% of the sum
of the aggregate unpaid principal amount of the Loans or, if no Loans are
outstanding, Lenders having at least 66 2/3% of the Credit Commitment.

         "Reserve Adjusted Libor" shall mean with respect to the Interest Period
pertaining to an Adjusted Libor Loan, a rate per annum equal to the product
(rounded upwards to the next higher 1/16 of one percent) of (a) the annual rate
of interest appearing on Page 3750 of the Telerate Service (or on any successor
or substitute page of such Service, or any successor to or substitute for such
Service, providing rate quotations comparable to those currently provided on
such page of such Service, as determined by the Administrative Agent from time
to time for purposes of providing quotations of interest rates applicable to
Dollar deposits in the London interbank market) at

                                       10
<PAGE>   16

approximately 11:00 a.m. (London time) on the second Business Day prior to the
commencement of such Interest Period, as the rate for Dollar deposits with a
maturity comparable to such Interest Period, or in the event that such rate is
not available at such time for any reason, then the rate of interest at which
Dollar deposits of an amount comparable to the amount of such Loan and for a
period equal to the Interest Period applicable thereto are offered to the Lender
which is the Administrative Agent in immediately available funds in the London
interbank market for Eurodollars at approximately 11:00 a.m. (London time) on
the second Business Day prior to the commencement of such Interest Period,
multiplied by (b) the Eurocurrency Reserve Requirement.

         "Revolving Credit Loan" and "Revolving Credit Loans" shall have the
meaning assigned to such terms in subsection 2.01.

         "Revolving Credit Notes" shall have the meaning set forth in Section
2.02.

         "Security Agreements" shall mean, collectively, with respect to the
Company, the Security Agreement in the form attached hereto as Exhibit C-1, and,
with respect to each Corporate Guarantor, the Corporate Guarantor Security
Agreement in the form attached hereto as Exhibit C-2 to be executed by the
Company and each Corporate Guarantor, respectively, and thereafter, by any
Person who may be required to execute the same pursuant to Section 6.13, as each
of the same may hereafter be amended, restated, supplemented or otherwise
modified from time to time.

         "Security Documents" shall mean the Security Agreements, the Pledge
Agreements, the Patent and Trademark Security Agreement, dated as of June 29,
1999 by and between Hugh O'Kane Electric Co. LLC and the Administrative Agent,
the Patent and Trademark Security Agreement, dated as of June 29, 1999 by and
between National Network Technologies, LLC and the Administrative Agent and each
other collateral security document delivered to the Administrative Agent
hereunder.

         "Solvent" shall mean with respect to any Person as of the date of
determination thereof that (a) the amount of the "present fair saleable value"
of the assets of such Person will, as of such date, exceed the amount of all
"liabilities of such Person, contingent or otherwise," as of such date, as such
quoted terms are determined in accordance with applicable federal and state laws
governing determinations of the insolvency of debtors, (b) the present fair
saleable value of the assets of such Person will, as of such date, be greater
than the amount that will be required on its debts as such debts become absolute
and matured, (c) such Person will not have as of such date, an unreasonably
small amount of capital with which to conduct its business, and (d) such Person
will be able to pay its debts as they mature.

         "Subordinated Debt" shall mean all debt which is subordinated in right
of payment to the prior final and indefeasible payment in full of the
obligations of the Company and/or of any Corporate Guarantor to the Lenders
hereunder and under any other Loan Document on terms satisfactory to and
approved in writing by the Required Lenders.

                                       11
<PAGE>   17

         "Subsidiaries" shall mean with respect to any Person any corporation,
association or other business entity more than 50% of the voting stock or other
ownership interests (including, without limitation, membership interests in a
limited liability company) of which is at the time owned or controlled, directly
or indirectly, by such Person or one or more of its Subsidiaries or a
combination thereof.

         "Taxes" shall have the meaning set forth in Section 3.09.

         "Total Credit Commitments" shall mean, at any time, the aggregate of
the Credit Commitments in effect at such time, which shall be initially
$50,000,000.

         "Treasury Rate" shall mean a rate of interest equal to 2.75% plus the
EAB swap adjusted rate of interest on the five (5) year adjusted U.S. treasury
note yield (as shown on Page 5 of the Telerate Service (or on any successor or
substitute page of such Service, or any successor to or substitute for such
Service, providing quotations comparable to those currently provided on such
page of such Service, as determined by the Administrative Agent from time to
time for purposes of providing such quotations) on the second Business Day prior
to the requested Borrowing Date) for the period commencing the Borrowing Date
for the relevant Acquisition Term Loan and ending on the Final Maturity Date.
The Treasury Rate shall be determined by the Administrative Agent and quoted to
the Company and the Lenders not less than three (3) Business Days prior to the
Borrowing Date with respect to an Acquisition Term Loan.

         "Treasury Rate Loan" shall mean any Loan accruing interest at the
Treasury Rate.

         "Type" shall mean as to any Loan its status as a Prime Rate Loan, an
Adjusted Libor Loan or a Treasury Rate Loan.

         "Unfunded Current Liability" of any Plan shall mean the amount, if any,
by which the present value of the accrued benefits under such Plan as of the
close of its most recent plan year exceeds the fair market value of the assets
allocable thereto, determined in accordance with Section 412 of the Code.

         SECTION 1.02. TERMS GENERALLY. The definitions of terms herein shall
apply equally to the singular and plural forms of the terms defined. Whenever
the context may require, pronouns stated in the masculine, feminine or neuter
gender shall include the masculine, feminine and the neuter. Except as otherwise
herein specifically provided, each accounting term used herein shall have the
meaning given to it under Generally Accepted Accounting Principles. The term
"including" shall not be limited or exclusive, unless specifically indicated to
the contrary. The word "will" shall be construed to have the same meaning in
effect as the word "shall". The words "herein", "hereof" and "hereunder" and
other words of similar import refer to this Agreement as a whole, including the
exhibits and schedules hereto, all of which are by this reference incorporated
into this Agreement.

                                       12
<PAGE>   18

                                   ARTICLE II
                                      LOANS

         SECTION 2.01. REVOLVING CREDIT LOANS. (a) Subject to the terms and
conditions, and relying upon the representations and warranties set forth
herein, each Lender severally but not jointly agrees to make loans (individually
a "Revolving Credit Loan" and, collectively, the "Revolving Credit Loans") to
the Company from time to time during the Credit Commitment Period up to but not
exceeding at any one time outstanding the amount of its Credit Commitment;
provided, however, that no Revolving Credit Loan shall be made if, after giving
effect to such Revolving Credit Loan, the Aggregate Outstandings would exceed
the Total Credit Commitments in effect at such time. During the Credit
Commitment Period, the Company may from time to time borrow, repay and reborrow
hereunder on or after the date hereof and prior to the Credit Commitment
Termination Date, subject to the terms, provisions and limitations set forth
herein. The Revolving Credit Loans may be (i) Adjusted Libor Loans, (ii) Prime
Rate Loans, or (iii) a combination thereof.

         (b) The Company may borrow Revolving Credit Loans under the Credit
Commitment during the Credit Commitment Period on any Business Day; provided
that the Company shall give the Administrative Agent irrevocable written notice
(or telephonic notice promptly confirmed in writing) not later than 12:00 noon
New York, New York time, three Business Days prior to the date of each proposed
Adjusted Libor Loan under this Section 2.01 or prior to 12:00 noon New York, New
York time on the date of each proposed Prime Rate Loan under this Section 2.01.
Such notice shall be irrevocable and shall specify (i) the amount and Type of
the proposed borrowing, (ii) the proposed use of the loan proceeds, (iii) the
initial Interest Period if an Adjusted Libor Loan, and (iv) the proposed
Borrowing Date. Upon receipt of such notice from the Company, the Administrative
Agent shall promptly notify each Lender thereof. Except for borrowings which
utilize the full remaining amount of the Total Credit Commitments, each
borrowing of a Prime Rate Loan shall be in an amount not less than $200,000 or,
if greater, whole multiples of $100,000 in excess thereof. Each borrowing of an
Adjusted Libor Loan shall be an amount not less than $500,000 or whole multiples
of $100,000 in excess thereof. Funding of all Loans shall be made in accordance
with Section 3.10.

         (c) The Company shall have the right, upon not less than three Business
Days' prior written notice to the Administrative Agent, to terminate the Total
Credit Commitments or from time to time to permanently reduce the amount of the
Total Credit Commitments; provided, however, that no such termination or
reduction shall be permitted if, after giving effect thereto and to any
prepayments of the Revolving Credit Loans made on the effective date thereof,
the Aggregate Outstandings at such time would exceed the Total Credit
Commitments as then reduced; provided, further, that any such termination or
reduction requiring prepayment of any Adjusted Libor Loan shall be made only on
the last day of the Interest Period with respect thereto or on the date of
payment in full of all amounts owing pursuant to Section 3.08 as a result of
such termination or reduction. The Administrative Agent shall promptly notify
each Lender of each notice from the Company to terminate or permanently reduce
the amount of the Credit Commitment pursuant to this Section 2.01. Any such
reduction shall be in the amount of $1,000,000 or whole multiples of

                                       13
<PAGE>   19

$100,000 in excess thereof, and shall reduce permanently the amount of the Total
Credit Commitments then in effect.

         (d) The several agreement of the Lenders to make Revolving Credit Loans
pursuant to this Section 2.01 shall automatically terminate on the Credit
Commitment Termination Date. Upon such termination, the Company shall
immediately repay in full the principal amount of the Revolving Credit Loans
then outstanding, together with all accrued interest thereon and all other
amounts due and payable hereunder.

         SECTION 2.02. REVOLVING CREDIT NOTE. The Revolving Credit Loans made by
each Lender shall be evidenced by a promissory note of the Company (individually
a "Revolving Credit Note" and, collectively, the "Revolving Credit Notes"),
substantially in the form attached hereto as Exhibit A-1 with respect to the
Original Lenders and Exhibit A-2 with respect to all other Lenders, each
appropriately completed, duly executed and delivered on behalf of the Company
and payable to the order of such Lender in a principal amount equal to the
Credit Commitment of such Lender. Each Note shall (a) be dated the Closing Date,
(b) be stated to mature on the Credit Commitment Termination Date, and (c) bear
interest from the date thereof until paid in full on the unpaid principal amount
thereof from time to time outstanding as provided in Section 3.01. Each Lender
is authorized to record the date and amount of each Revolving Credit Loan and
the date and amount of each payment or prepayment of principal of each Revolving
Credit Loan in such Lender's records or on the grid schedule annexed to the
Note; provided, however, that the failure of a Lender to set forth each such
Revolving Credit Loan, payment and other information shall not in any manner
affect the obligation of the Company to repay each Revolving Credit Loan made by
such Lender in accordance with the terms of its Revolving Credit Note and this
Agreement. The Revolving Credit Note, the grid schedule and the books and
records of each Lender shall constitute presumptive evidence of the information
so recorded absent clear and obvious error.

         SECTION 2.03. ACQUISITION TERM LOANS. (a) Subject to the terms and
conditions set forth in this Agreement, the Company may utilize up to the entire
Total Credit Commitments for loans from the Lenders and the Lenders agree to
make loans (individually, an "Acquisition Term Loan" and, collectively, the
"Acquisition Term Loans") to the Company at any time and from time to time on
and after the Closing Date until the Credit Commitment Termination Date, in an
aggregate principal amount outstanding not to exceed the Total Credit
Commitments, provided that after giving effect to a requested Acquisition Term
Loan, the Aggregate Outstandings shall not exceed the Total Credit Commitments.
Each borrowing of an Acquisition Term Loan shall reduce the availability under
the Total Credit Commitments by an amount equal to such borrowing. Acquisition
Term Loans may be (i) Prime Rate Loans or (ii) Treasury Rate Loans.

                  (b) The Company may borrow Acquisition Term Loans under the
Total Credit Commitments during the Credit Commitment Period on any Business
Day; provided that the Company shall give the Administrative Agent irrevocable
written notice (or telephonic notice promptly confirmed in writing) not later
than 12:00 noon New York, New York time, three Business Days prior to the date
of each proposed Treasury Rate Loan under this Section 2.03 or prior to 12:00

                                       14
<PAGE>   20

noon New York, New York time on the date of each proposed Prime Rate Loan under
this Section 2.03. Such notice shall be irrevocable and shall specify (i) the
amount and Type of the proposed borrowing, (ii) the proposed use of the loan
proceeds, and (iii) the proposed Borrowing Date. Upon receipt of such notice
from the Company, the Administrative Agent shall promptly notify each Lender
thereof. Except for borrowings which utilize the full remaining amount of the
Total Credit Commitments, each borrowing of a Prime Rate Loan shall be in an
amount not less than $500,000 or, if greater, whole multiples of $100,000 in
excess thereof. Each borrowing of a Treasury Rate Loan shall be an amount not
less than $500,000 or whole multiples of $100,000 in excess thereof. Funding of
all Loans shall be made in accordance with Section 3.10.

                  (c) Each Acquisition Term Loan made by the Lenders to the
Company shall be evidenced by a promissory note of the Company (individually an
"Acquisition Term Note" and, collectively, the "Acquisition Term Notes"),
substantially in the form attached hereto as Exhibit B, each appropriately
completed, duly executed and delivered on behalf of the Company and payable to
the order of such Lender in a principal amount equal to the Credit Commitment of
such Lender. Each Acquisition Term Note shall (a) be stated to mature on the
Final Maturity Date, and (b) bear interest from the date thereof until paid in
full on the unpaid principal amount thereof from time to time outstanding as
provided in Section 3.01. Each Acquisition Term Loan shall be payable in monthly
installments of principal commencing on the first day of the month following the
Borrowing Date of such Acquisition Term Loan. Each installment of principal
shall be equal to 1/60th of the amount of such Acquisition Term Loan; provided,
that the outstanding principal amount of all Acquisition Term Loans shall be due
and payable on the Final Maturity Date, together with interest thereon as of
such date. Each Acquisition Term Loan shall bear interest from the date of
funding thereof until paid in full on the unpaid principal amount thereof from
time to time outstanding at the applicable interest rate per annum specified in
Section 3.01. The date and amount of each Acquisition Term Loan and the date and
amount of each payment or prepayment of principal of such Acquisition Term Loan
shall be recorded on a schedule annexed to such Acquisition Term Note, and the
Company authorizes each Lender to make such recordation; provided, however, that
the failure of a Lender to set forth payments and other information in such grid
shall not in any manner affect the obligation of the Company to repay each
Acquisition Term Loan made by such Lender in accordance with the terms of this
Agreement. Each Acquisition Term Note, the grid schedule and the books and
records of each Lender shall constitute presumptive evidence of the information
so recorded absent clear and obvious error.

                                   ARTICLE III
                PROVISIONS RELATING TO ALL EXTENSIONS OF CREDIT;
                                FEES AND PAYMENTS

         SECTION 3.01. INTEREST RATE; CONTINUATION AND CONVERSION OF LOANS.

                  (a) Each Prime Rate Loan shall bear interest for the period
from the date thereof on the unpaid principal amount thereof at a fluctuating
rate per annum equal to (i) with respect to

                                       15
<PAGE>   21

Revolving Credit Loans, the Prime Rate, and (ii) with respect to Acquisition
Term Loans, the Prime Rate plus a margin equal to 0.25% per annum.

                  (b) Each Adjusted Libor Loan shall bear interest for the
Interest Period applicable thereto on the unpaid principal amount thereof at a
rate per annum equal to the Reserve Adjusted Libor determined for such Interest
Period in accordance with the terms hereof plus a margin of two and one-half
percent (2.50%) per annum.

                  (c) Each Treasury Rate Loan shall bear interest at the
Treasury Rate for the period set forth in the definition of Treasury Rate.

                  (d) Upon the occurrence and during the continuance of an Event
of Default arising pursuant to Section 8.01(a), the outstanding principal amount
of the Loans (excluding any defaulted payment of principal accruing interest in
accordance with clause (e) below), shall, at the option of the Required Lenders,
bear interest payable on demand at a rate of interest 2% plus the interest rate
otherwise then in effect.

                  (e) If the Company shall default in the payment of the
principal of or interest on any portion of any Loan or any other amount becoming
due hereunder, whether with respect to interest, fees, expenses or otherwise,
the Company shall pay interest on such defaulted amount accruing from the date
of such default (without reference to any period of grace) up to and including
the date of actual payment (after as well as before judgment) at a rate of 2%
plus the interest rate otherwise in effect, or, if no interest rate is in
effect, 2% plus the Prime Rate.

                  (f) Anything in this Agreement or in any Note to the contrary
notwithstanding, the obligation of the Company to make payments of interest
shall be subject to the limitation that payments of interest shall not be
required to be paid to a Lender to the extent that the charging or receipt
thereof would not be permissible under the law or laws applicable to such Lender
limiting the rates of interest that may be charged or collected by such Lender.
In each such event payments of interest required to be paid to such Lender shall
be calculated at the highest rate permitted by applicable law until such time as
the rates of interest required hereunder may lawfully be charged and collected
by such Lender. If the provisions of this Agreement or any Note would at any
time otherwise require payment by the Company to any Lender of any amount of
interest in excess of the maximum amount then permitted by applicable law, the
interest payments to such Lender shall be reduced to the extent necessary so
that such Lender shall not receive interest in excess of such maximum amount.

                  (g) Interest on each Loan shall be payable in arrears on each
Interest Payment Date and shall be calculated on the basis of a year of 360 days
and shall be payable for the actual days elapsed. Any rate of interest on the
Loans or other Obligations which is computed on the basis of the Prime Rate
shall change when and as the Prime Rate changes in accordance with the
definition thereof. Each determination by the Administrative Agent of an
interest rate or fee hereunder shall, absent clear and obvious error, be
conclusive and binding for all purposes.

                                       16
<PAGE>   22

                  (h) The Company may elect from time to time to convert
outstanding Adjusted Libor Loans to Prime Rate Loans by giving the
Administrative Agent (which shall promptly notify the Lenders) at least three
Business Days' prior irrevocable written notice of such election, provided that
any such conversion of Adjusted Libor Loans shall only be made on the last day
of an Interest Period with respect thereto or upon the date of payment in full
of any amounts owing pursuant to Section 3.08 as a result of such conversion.
The Company may elect from time to time to convert outstanding Revolving Credit
Loans from Prime Rate Loans to Adjusted Libor Loans by giving the Administrative
Agent (which shall promptly notify the Lenders) irrevocable written notice of
such election not later than 12:00 noon New York, New York time, three Business
Days prior to the date of the proposed conversion. All or any part of
outstanding Prime Rate Loans may be converted as provided herein, provided that
each conversion shall be in the principal amount of $500,000 or whole multiples
of $100,000 in excess thereof, and further provided that no Default or Event of
Default shall have occurred and be continuing. Any conversion to or from
Adjusted Libor Loans hereunder shall be in such amounts and be made pursuant to
such elections so that, after giving effect thereto, the aggregate principal
amount of all Adjusted Libor Loans having the same Interest Period shall not be
less than $500,000.

                  (i) Any Adjusted Libor Loan in a minimum principal amount of
$500,000 may be continued as such upon the expiration of an Interest Period with
respect thereto by compliance by the Company with the notice provisions
contained in the definition of Interest Period; provided, that no Adjusted Libor
Loan may be continued as such when any Default or Event of Default has occurred
and is continuing, but shall be automatically converted to a Prime Rate Loan on
the last day of the Interest Period in effect when the Administrative Agent is
notified, or otherwise has actual knowledge, of such Default or Event of
Default.

                  (j) If the Company shall fail to select the duration of any
Interest Period for any Adjusted Libor Loan in accordance with the definition of
"Interest Period" set forth in Section 1.01, the Company shall be deemed to have
selected an Interest Period of one month.

         SECTION 3.02. USE OF PROCEEDS. The proceeds of the Loans shall be used
solely (i) for general corporate purposes, including, without limitation,
financing working capital of the Company and the Corporate Guarantors in the
ordinary course of business, but excluding purchases or redemptions of capital
stock of the Company or any of its Subsidiaries and (ii) to finance all or a
portion of the cash portion of the purchase price of Permitted Financed
Acquisitions.

         SECTION 3.03. PREPAYMENTS.

                  (a) The Company may on the last day of an Interest Period if
the Loans to be prepaid are Adjusted Libor Loans, or at any time and from time
to time if the Loans to be prepaid are Prime Rate Loans or Treasury Rate Loans,
prepay the then outstanding Loans, in whole or in part, without premium or
penalty, except as provided in Section 3.08, upon written notice to the
Administrative Agent (or telephonic notice promptly confirmed in writing) not
later than 11:00 a.m. New York, New York time three Business Days before the
date of prepayment with respect to

                                       17
<PAGE>   23

prepayments of Fixed Rate Loans or 11:00 a.m. New York, New York time one
Business Day before the date of prepayment with respect to Prime Rate Loans.
Each notice shall be irrevocable and shall specify the date and amount of
prepayment and whether such repayment is of Adjusted Libor Loans, Treasury Rate
Loans or Prime Rate Loans or a combination thereof, and if a combination
thereof, the amount of prepayment allocable to each. Upon receipt of such
notice, the Administrative Agent shall promptly notify each Lender thereof. If
such notice is given, the Company shall make such prepayment, and the amount
specified in such notice shall be due and payable, on the date specified
therein. Each partial prepayment pursuant to this Section 3.03 shall be in a
principal amount of $100,000 or whole multiples of $100,000 in excess thereof.

                  (b) Each prepayment of principal of a Loan pursuant to this
Section 3.03 shall be accompanied by accrued interest to the date prepaid on the
amount prepaid. In the event the Company shall fail to specify whether the
prepayment relates to an Adjusted Libor Loan, Treasury Rate Loan or Prime Rate
Loan, then the applicable prepayment shall be applied, first, to outstanding
Prime Rate Loans, then, to outstanding Adjusted Libor Loans in the inverse order
of their maturity up to the full amount thereof, and, then, to outstanding
Treasury Rate Loans.

         SECTION 3.04. FEES. (a) On the Closing Date, the Company agrees to pay
to the Administrative Agent for the benefit of the Lenders, a facility fee of
$187,500 which shall be payable on the Closing Date, such fee to be distributed
to the Lenders based upon their respective Commitment Proportion.

                  (b) The Company shall pay to each Lender, pro rata based on
each Lender's Commitment Proportion, a commitment fee on the average daily
amount of the Total Credit Commitments less the aggregate principal amount of
the Loans outstanding from the date of this Agreement until the Credit
Commitment Termination Date at the rate of 1/2 of 1% per annum, based on a year
of 360 days, payable in arrears on the last Business Day of each calendar
quarter, commencing December 31, 2000, and on the Credit Commitment Termination
Date and on any day the Total Credit Commitments are permanently reduced in
whole or in part.

                  (c) The Company shall pay to the Administrative Agent, as sole
administrative and collateral agent, such fees as shall be specified in an
agreement between the Company and the Administrative Agent.

         SECTION 3.05. INABILITY TO DETERMINE INTEREST RATE. In the event that
the Administrative Agent have determined (which determination shall be
conclusive and binding upon the Company) that, by reason of circumstances
affecting the London interbank market, adequate and reasonable means do not
exist for ascertaining the Reserve Adjusted Libor applicable pursuant to Section
3.01(b) for any requested Interest Period with respect to (a) the making of an
Adjusted Libor Loan, (b) an Adjusted Libor Loan that will result from the
requested conversion of a Prime Rate Loan into an Adjusted Libor Loan, or (c)
the continuation of an Adjusted Libor Loan beyond the expiration of the then
current Interest Period with respect thereto, the Administrative Agent shall
forthwith give notice by telephone of such determination, promptly confirmed in
writing, to the

                                       18
<PAGE>   24

Company of such determination. Until the Administrative Agent notifies the
Company that the circumstances giving rise to the suspension described herein no
longer exist, the Company shall not have the right to request or continue an
Adjusted Libor Loan or to convert a Prime Rate Loan to an Adjusted Libor Loan.

         SECTION 3.06. ILLEGALITY. Notwithstanding any other provisions herein,
if any introduction of or change in any law, regulation, treaty or directive or
in the interpretation or application thereof shall make it unlawful for any
Lender to make or maintain any Fixed Rate Loans as contemplated by this
Agreement, such Lender shall forthwith give notice by telephone of such
circumstances, promptly confirmed in writing, and (a) the commitments of the
Lenders to make and to allow conversion to or continuations of any Fixed Rate
Loans shall forthwith be cancelled for the duration of such illegality and (b)
the Loans then outstanding as Fixed Rate Loans, if any, shall be converted
automatically to Prime Rate Loans on (x) with respect to any Adjusted Libor
Loan, the next succeeding last day of each Interest Period applicable to such
Adjusted Libor Loans, (y) with respect to any Treasury Rate Loan, on the date
designated in a writing by the Administrative Agent to the Company and the
Lenders not less than 3 Business Days prior to the date of conversion or (z) on
such earlier date as may be required by law. The Company shall pay to the
Administrative Agent, for the ratable benefit of the Lenders, upon demand, any
additional amounts required to be paid pursuant to Section 3.08.

         SECTION 3.07. INCREASED COSTS. (a) In the event that any introduction
of or change in, on or after the date hereof, any applicable law, regulation,
treaty, order, or directive or change in the interpretation or application
thereof (including, without limitation, any request, guideline or policy,
whether or not having the force of law, of or from any central bank or other
governmental authority, agency or instrumentality and including, without
limitation, Regulation D), by any authority charged with the administration or
interpretation thereof shall occur, which:

           (i) shall subject any Lender to any tax of any kind whatsoever with
         respect to this Agreement, any Note, or any Loan, or change the basis
         of taxation of payments to such Lender of principal, interest, fees or
         any other amount payable hereunder (other than any tax that is measured
         with respect to the overall net income of such Lender or Lending Office
         of such Lender and that is imposed by the United States of America, or
         any political subdivision or taxing authority thereof or therein, or by
         any jurisdiction in which such Lender's Lending Office is located, or
         by any jurisdiction in which such Lender is organized, has its
         principal office or is managed and controlled); or

           (ii) shall impose, modify or hold applicable any reserve, special
         deposit, compulsory loan or similar requirement (whether or not having
         the force of law) against assets held by, or deposits or other
         liabilities in or for the account of, advances or loans by, or other
         credit extended by, or any other acquisition of funds by, any office of
         any Lender; or

           (iii)  shall impose on any Lender any other condition;

                                       19
<PAGE>   25

and the result of any of the foregoing is to increase the cost to such Lender of
making, renewing or maintaining or participating in advances or extensions of
credit hereunder or to reduce any amount receivable hereunder, in each case by
an amount which such Lender deems material, then, in any such case, the Company
shall pay such Lender, upon demand, such additional amount or amounts as such
Lender shall have determined will compensate such Lender for such increased
costs or reduction.

                  (b) If any Lender shall have determined that the adoption of
any applicable law, rule or regulation regarding capital adequacy, or any change
therein, or any change in the interpretation or administration thereof by any
governmental authority, central bank or comparable agency charged with the
interpretation or administration thereof, or compliance by any Lender (or any
lending office of any Lender) or any Lender's holding company, with any request
or directive regarding capital adequacy (whether or not having the force of the
law) of any such authority, central bank or comparable agency, has or would have
the effect of reducing the rate of return on such Lender's capital or on the
capital of such Lender's holding company as a consequence of its obligations
hereunder to a level below that which such Lender or such Lender's holding
company could have achieved but for such adoption, change or compliance (taking
into consideration such Lender's policies and the policies of such Lender's
holding company with respect to capital adequacy) by an amount deemed by such
Lender to be material, then from time to time, the Company shall pay to such
Lender the additional amount or amounts as such Lender shall have determined
will compensate such Lender or such Lender's holding company for such reduction.
Such Lender's determination of such amounts shall be conclusive and binding on
the Company absent clear and obvious error.

                  (c) A certificate of a Lender setting forth the amount or
amounts payable pursuant to Sections 3.07(a) and 3.07(b) shall be conclusive
absent clear and obvious error. The Company shall pay such Lender the amount
shown as due on any such certificate within 10 days after receipt thereof.

                  (d) In the event any Lender shall be entitled to compensation
pursuant to Section 3.07(a) or Section 3.07(b), it shall promptly notify the
Administrative Agent and the Company of the event by reason of which it has
become so entitled; provided, however, no failure on the part of any Lender to
demand compensation under clause (a) or clause (b) above on one occasion shall
constitute a waiver of its right to demand compensation on any other occasion.

         SECTION 3.08. INDEMNITY. The Company agrees to indemnify each Lender
and to hold each Lender harmless from any loss, cost or expense which any Lender
may sustain or incur, including, without limitation, interest or fees payable by
such Lender to lenders of funds obtained by it in order to maintain Fixed Rate
Loans hereunder, as a consequence of (a) default by the Company in payment of
the principal amount of or interest on any Fixed Rate Loan, (b) default by the
Company to accept or make a borrowing of a Fixed Rate Loan or a conversion into
or continuation of an Adjusted Libor Loan after the Company has requested such
borrowing, conversion or continuation in accordance with the terms of this
Agreement, (c) default by the Company in

                                       20
<PAGE>   26

making any prepayment of any Fixed Rate Loan after the Company gives a notice in
accordance with Section 3.03 and/or (d) the making of any payment or prepayment
(whether mandatory or optional) of a Fixed Rate Loan or the making of any
conversion of an Adjusted Libor Loan to a Prime Rate Loan on a day which is not
the last day of the applicable Interest Period with respect thereto. A
certificate of the applicable Lender setting forth such amounts shall be
conclusive absent clear and obvious error. The Company shall pay the
Administrative Agent, for the ratable benefit of the Lenders, the amount shown
as due on any certificate within ten days after receipt thereof.

         SECTION 3.09. TAXES. (a) Except as set forth in clause (c) below or as
required by law, all payments made by the Company under this Agreement shall be
made free and clear of, and without reduction for or on account of, any present
or future taxes, levies, imposts, duties, charges, fees, deductions or
withholdings, now or hereafter imposed, levied, collected, withheld or assessed
by any Governmental Authority, excluding income and franchise taxes imposed on
the Administrative Agent or a Lender by (i) the United States of America or any
political subdivision or taxing authority thereof or therein, (ii) the
jurisdiction under the laws of which the Administrative Agent or such Lender is
organized or in which it has its principal office or is managed and controlled
or any political subdivision or taxing authority thereof or therein, or (iii)
any jurisdiction in which such Lender's Lending Office is located or any
political subdivision or taxing authority thereof or therein (such non- excluded
taxes being called "Taxes"). If any Taxes are required to be withheld from any
amounts payable to the Administrative Agent, or any Lender hereunder, or under
the Notes, the amount so payable to the Administrative Agent or such Lender
shall be increased to the extent necessary to yield to the Administrative Agent
or such Lender (after payment of all Taxes and free and clear of all liability
in respect of such Taxes) interest or any such other amounts payable hereunder
at the rates or in the amounts specified in this Agreement and the Notes.
Whenever any Taxes are payable by the Company, as promptly as possible
thereafter, the Company shall send to the Administrative Agent for its own
account or for the account of such Lender, as the case may be, a certified copy
of an original official receipt showing payment thereof. If the Company fails to
pay Taxes when due to the appropriate taxing authority or fails to remit to the
Administrative Agent the required receipts or other required documentary
evidence, the Company shall indemnify the Administrative Agent and the Lenders
for any incremental taxes, interest or penalties that may become payable by the
Administrative Agent or such Lender as a result of any such failure together
with any expenses payable by the Administrative Agent or such Lender in
connection therewith.

                  (b) Prior to the first Interest Payment Date, each Lender that
is not organized under the laws of the United States or a state thereof agrees
that it will deliver to the Administrative Agent (i) two duly completed copies
of United States Internal Revenue Service Form W-8ECI or W-8BEN or successor
applicable form, as the case may be, certifying in each case that such Lender is
entitled to receive payments under this Agreement without deduction or
withholding of any United States federal income taxes, and (ii) an Internal
Revenue Service Form W-8 or W-9 or successor applicable form, as the case may
be, to establish an exemption from United States back-up withholding tax. Each
Lender which delivers to the Company and the Administrative Agent a Form W-8ECI

                                       21
<PAGE>   27

or W-8BEN and Form W-8 or W-9 pursuant to the preceding sentence further
undertakes to deliver to the Administrative Agent two further copies of the said
statement and Form W-8ECI or W-8BEN and Form W-8 or W-9, or successor applicable
forms, or other manner of certification, as the case may be, on or before the
date that any such letter or form expires or becomes obsolete or after the
occurrence of any event requiring a change in the most recent letter and form
previously delivered by it to the Administrative Agent, and such extensions or
renewals thereof as may reasonably be requested by the Administrative Agent,
certifying in the case of a Form W-8ECI or W-8BEN that such Lender is entitled
to receive payments under this Agreement without deduction or withholding of any
United States federal income taxes.

         SECTION 3.10. PRO RATA TREATMENT AND PAYMENTS. Each borrowing by the
Company from the Lenders, each conversion of a Revolving Credit Loan pursuant to
Section 3.01(h) or continuation of a Revolving Credit Loan pursuant to Section
3.01(i), each payment by the Company on account of any fee (other than with
respect to fees which are expressly payable to the Administrative Agent for its
own account), and any reduction of the Credit Commitments of the Lenders
hereunder shall be made pro rata according to the respective relevant Commitment
Proportions of the Lenders. Each payment (including each prepayment) by the
Company on account of principal of and interest on each Revolving Credit Loan
and Acquisition Term Loan shall be made pro rata according to the respective
outstanding principal amounts of such Loans held by each Lender. All payments
(including prepayments) to be made by the Company on account of principal,
interest, fees and reimbursement obligations shall be made without set-off or
counterclaim and shall be made to the Administrative Agent, for the account of
the Lenders, at the Payment Office of the Administrative Agent in Dollars in
immediately available funds. The Administrative Agent shall distribute such
payments to the Lenders promptly upon receipt in like funds by wire transfer of
each Lender's portion of such payment to such Lender for the account of its
Lending Office. The Administrative Agent may, in its sole discretion, directly
charge principal and interest payments due in respect of the Loans to the
Company's accounts at the Payment Office or other office of the Administrative
Agent. Except as otherwise provided in the definition of "Interest Period", if
any payment hereunder becomes due and payable on a day other than a Business
Day, such payment shall be extended to the next succeeding Business Day, and,
with respect to payments of principal, interest thereon shall be payable at the
then applicable rate during such extension.

         SECTION 3.11. MITIGATION OBLIGATIONS; REPLACEMENT OF LENDERS. (a) If
any Lender requests compensation under Section 3.07, or if the Company is
required to pay any additional amount to any Lender or any Governmental
Authority for the account of any Lender pursuant to Section 3.09, then such
Lender shall use reasonable efforts to designate a different lending office for
funding or booking its Loans hereunder or to assign its rights and obligations
hereunder to another of its offices, branches or affiliates, if, in the judgment
of such Lender, such designation or assignment (i) would eliminate or reduce
amounts payable pursuant to Section 3.07 or 3.09, as the case may be, in the
future and (ii) would not subject such Lender to any unreimbursed cost or
expense or legal, regulatory or administrative burdens and would not otherwise
be disadvantageous to such Lender. The Company hereby agrees to pay all
reasonable costs and expenses incurred by any Lender in connection with any such
designation or assignment.

                                       22
<PAGE>   28

                  (b) If any Lender requests compensation under Section 3.07, or
if the Company is required to pay any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to Section 3.09,
or if any Lender defaults in its obligation to fund Loans hereunder, then the
Company may, at its sole expense and effort, upon notice to such Lender and the
Administrative Agent, require such Lender to assign and delegate, without
recourse (in accordance with and subject to the restrictions contained in
Section 10.05), all of its interests, rights and obligations under this
Agreement to an assignee that shall assume such obligations (which assignee may
be another Lender, if a Lender accepts such assignment); provided that (i) the
Company shall have received the prior written consent of the Administrative
Agent, which consent shall not unreasonably be withheld, (ii) such Lender shall
have received payment of an amount equal to the outstanding principal of its
Loans, accrued interest thereon, accrued fees and all other amounts payable to
it hereunder, from the assignee (to the extent of such outstanding principal and
accrued interest and fees) or the Company (in the case of all other amounts) and
(iii) in the case of any such assignment resulting from a claim for compensation
under Section 3.07 or payments required to be made pursuant to Section 3.09,
such assignment will result in a reduction in such compensation or payments. A
Lender shall not be required to make any such assignment and delegation if,
prior thereto, as a result of a waiver by such Lender or otherwise, the
circumstances entitling the Company to require such assignment and delegation
cease to apply.

                                   ARTICLE IV
                         REPRESENTATIONS AND WARRANTIES

         In order to induce the Lenders and the Administrative Agent to enter
into this Agreement and to make the Loans herein provided for, the Company and
each Corporate Guarantor represents and warrants to each Lender and the
Administrative Agent that:

         SECTION 4.01. ORGANIZATION, POWERS. The Company (a) is a corporation
duly organized, validly existing and in good standing under the laws of the
State of Delaware, (b) has the corporate power and authority to own its
properties and to carry on its business as now being conducted, (c) is duly
qualified to do business in every jurisdiction wherein the conduct of its
business or the ownership of its properties are such as to require such
qualification, except where the failure to be so qualified could not reasonably
be expected to have a Material Adverse Effect, and (d) has the corporate power
to execute, deliver and perform each of the Loan Documents to which it is a
party, including, without limitation, the power to obtain extensions of credit
hereunder and to execute and deliver the Notes. Each Corporate Guarantor is (a)
a corporation, limited liability company or limited partnership, duly organized
or formed, as applicable, validly existing and in good standing under the laws
of the state of its incorporation or formation, (b) has the corporate, limited
partnership or limited liability company power and authority to own or lease its
properties and carry on its business as now being conducted, (c) is duly
qualified to do business in every jurisdiction wherein the conduct of its
business or the ownership of its properties are such as to require such
qualification except where the failure to be so qualified could not reasonably
be expected to have

                                       23
<PAGE>   29

a Material Adverse Effect, and (d) has the corporate, limited liability company
or partnership power as applicable to execute, deliver and perform each of the
Loan Documents to which it is a party.

         SECTION 4.02. AUTHORIZATION OF BORROWING, ENFORCEABLE OBLIGATIONS. The
execution, delivery and performance by the Company of this Agreement, and the
other Loan Documents to which it is a party, the borrowings and the other
extensions of credit to the Company hereunder, and the execution, delivery and
performance by each of the Corporate Guarantors of the Loan Documents to which
such Corporate Guarantor is a party, (a) have, with respect to the Company and
each Corporate Guarantor, been duly authorized by all requisite corporate,
partnership and limited liability company action, as applicable, (b) will not
violate or require any consent (other than consents as have been made or
obtained and which are in full force and effect) under (i) any provision of law
applicable to the Company or any Corporate Guarantor, any rule or regulation of
any Governmental Authority, or the Certificate of Incorporation or By-laws, the
partnership agreement or the Articles of Organization and Operating Agreement,
as applicable, of the Company or of any Corporate Guarantor or (ii) any order of
any court or other Governmental Authority binding on the Company or any
Corporate Guarantor or any indenture, agreement or other instrument to which the
Company or any Corporate Guarantor is a party, or by which the Company or any
Corporate Guarantor or any of its property is bound, and (c) will not be in
conflict with, result in a breach of or constitute (with due notice and/or lapse
of time) a default under, any such indenture, agreement or other instrument, or
result in the creation or imposition of any Lien of any nature whatsoever upon
any of the property or assets of the Company or any Corporate Guarantor other
than as contemplated by this Agreement or the other Loan Documents. This
Agreement and each other Loan Document to which the Company or any Corporate
Guarantor is a party constitutes a legal, valid and binding obligation of the
Company or such Corporate Guarantor, as the case may be, enforceable against the
Company or such Corporate Guarantor, as the case may be, in accordance with its
terms except to the extent that enforcement may be limited by applicable
bankruptcy, reorganization, moratorium, insolvency and similar laws affecting
creditors' rights generally or by equitable principles of general application,
regardless of whether considered in a proceeding in equity or at law.

         SECTION 4.03. FINANCIAL CONDITION. (a) The Company has heretofore
furnished to each Lender (i) the audited consolidated balance sheet of the
Company and its Subsidiaries and the related consolidated statements of income,
retained earnings and cash flow of the Company and its Subsidiaries, audited by
Pricewaterhouse Coopers LLP, independent certified public accountants, for the
fiscal year ended December 31, 1999, and (ii) the unaudited consolidated and
consolidating balance sheet of the Company and its Subsidiaries and the related
consolidated and consolidating statements of income, retained earnings and cash
flow of the Company and its Subsidiaries for the three and nine month period
ended September 30, 2000. Such financial statements were prepared in conformity
with Generally Accepted Accounting Principles, applied on a consistent basis,
and fairly present the financial condition and results of operations of the
Company and its Subsidiaries, on a consolidated basis, as of the date of such
financial statements and for the periods to which they relate and, since
September 30, 2000, no Material Adverse Effect has occurred. The Company shall
deliver to the Administrative Agent, with a copy for each Lender a certificate
of the Chief Financial

                                       24
<PAGE>   30

Officer to that effect on the Closing Date. Other than obligations and
liabilities arising in the ordinary course of business since September 30, 2000,
there are no obligations or liabilities, contingent or otherwise, of the Company
or any of its Subsidiaries which are not reflected or disclosed on such
statements.

                  (b) The Company, individually and together with the Corporate
Guarantors, is Solvent and immediately after giving effect to the Loans and the
execution of each Loan Document, will be Solvent.

         SECTION 4.04. TAXES. All assessed deficiencies resulting from Internal
Revenue Service examinations of the federal income tax returns of the Company or
any Corporate Guarantor have been discharged or reserved against in accordance
with Generally Accepted Accounting Principles. The Company and each Corporate
Guarantor has filed or caused to be filed all federal, state and local tax
returns which are required to be filed, and has paid or has caused to be paid
all taxes as shown on said returns or on any assessment received by them, to the
extent that such taxes have become due, except taxes which are being contested
in good faith and which are reserved against in accordance with Generally
Accepted Accounting Principles.

         SECTION 4.05. TITLE TO PROPERTIES. The Company and each Corporate
Guarantor has good title to their respective properties and assets reflected on
the financial statements referred to in Section 4.03, except for such properties
and assets as have been disposed of since the date of such financial statements
as no longer used or useful in the conduct of their respective businesses or as
have been disposed of in the ordinary course of business, and all such
properties and assets are free and clear of all Liens other than Permitted
Liens.

         SECTION 4.06. LITIGATION. (a) Except for the Casella litigation
described in the "Legal Proceedings" section of the Company's Prospectus dated
July 27, 2000 (the "Casella Litigation"), there are no actions, suits or
proceedings (whether or not purportedly on behalf of the Company or of any
Corporate Guarantor) pending or, to the knowledge of the Company, threatened
against or affecting the Company or any Corporate Guarantor at law or in equity
or before or by any Governmental Authority, which involve this Agreement or any
other Loan Document or any of the transactions contemplated herein or therein or
which, if adversely determined against the Company or such Corporate Guarantor
could reasonably be expected to have a Material Adverse Effect or which involve
a claim against the Company or any Corporate Guarantor in excess of $200,000
which is not fully covered by insurance (other than reasonable and customary
deductibles); and (b) neither the Company nor any Corporate Guarantor is in
default with respect to any judgment, writ, injunction, decree, rule or
regulation of any Governmental Authority which could reasonably be expected to
result in a Material Adverse Effect. The Casella Litigation could not reasonably
be expected to have a Material Adverse Effect.

         SECTION 4.07. AGREEMENTS. Neither the Company nor any Corporate
Guarantor is a party to any agreement or instrument or subject to any charter or
other corporate restriction or any judgment, order, writ, injunction, decree or
regulation which could reasonably be expected to have

                                       25
<PAGE>   31

a Material Adverse Effect. Neither the Company nor any Corporate Guarantor is in
default in the performance, observance or fulfillment of any of the obligations,
covenants or conditions contained in any material agreement or instrument to
which it is a party which could reasonably be expected to have a Material
Adverse Effect.

         SECTION 4.08. COMPLIANCE WITH ERISA. Each Plan is in compliance in all
material respects with ERISA; no Plan is insolvent or in reorganization, no Plan
or Plans have an Unfunded Current Liability, and no Plan has an accumulated or
waived funding deficiency; neither the Company, any Corporate Guarantor nor any
ERISA Affiliate has incurred any liability to or on account of a Plan pursuant
to Section 515, 4062, 4063, 4064, 4201 or 4204 of ERISA or reasonably expects to
incur any liability under any of the foregoing sections on account of the prior
termination of participation in or contributions to any such Plan; no
proceedings have been instituted to terminate or to appoint a trustee to
administer any Plan; no condition exists which could reasonably be expected to
present a risk to the Company, any Corporate Guarantor or any ERISA Affiliate of
incurring a liability in excess of $200,000 to or on account of a Plan pursuant
to the foregoing provisions of ERISA and the Code; no lien imposed under the
Code or ERISA on the assets of the Company, any Corporate Guarantor or any of
its ERISA Affiliates exists or to the knowledge of the Company is likely to
arise on account of any Plan, and the Company and each Corporate Guarantor may
terminate contributions to any other employee benefit plans maintained by it
without incurring any material liability to any Person interested therein.

         SECTION 4.09. FEDERAL RESERVE REGULATIONS; USE OF PROCEEDS. (a) Neither
the Company nor any Corporate Guarantor is engaged principally in, nor has as
one of its important activities, the business of extending credit for the
purpose of purchasing or carrying any "margin stock" (within the meaning of
Regulation U of the Board of Governors of the Federal Reserve System of the
United States, as amended from time to time).

         (b) No part of the proceeds of any Loan will be used, whether directly
or indirectly, and whether immediately, incidentally or ultimately, (i) to
purchase or to carry margin stock or to extend credit to others for the purpose
of purchasing or carrying margin stock, or to refund indebtedness originally
incurred for such purposes, or (ii) for any purpose which violates or is
inconsistent with the provisions of Regulation T, U or X of the Board of
Governors of the Federal Reserve System.

         (c) The proceeds of the Loans shall be used solely for the purposes
permitted under Section 3.02.

         SECTION 4.10. APPROVALS. No registration with or consent or approval
of, or other action by, any Governmental Authority or any other Person is
required in connection with the execution, delivery and performance of this
Agreement by the Company or any Corporate Guarantor, or with the execution and
delivery of other Loan Documents to which it is a party or, with respect to the
Company, the borrowings hereunder, except such as have been obtained or made and
are in full force and effect.

                                       26
<PAGE>   32

         SECTION 4.11. SUBSIDIARIES. Attached hereto as Schedule I is a correct
and complete list of each of the Company's and each Corporate Guarantor's
Subsidiaries as of the Closing Date showing as to each Subsidiary, its name, the
jurisdiction of its incorporation or organization, its shareholders or other
owners of an interest in each Subsidiary and the number of outstanding shares or
other ownership interest owned by each shareholder or other owner of an
interest.

         SECTION 4.12. HAZARDOUS MATERIALS. The Company and each Corporate
Guarantor are in compliance in all material respects with all applicable
Environmental Laws and neither the Company nor any Corporate Guarantor has used
Hazardous Materials on, from, or affecting any property now owned or occupied or
hereafter owned or occupied by the Company or any Corporate Guarantor in any
manner which violates any applicable Environmental Law. To the best of the
Company's knowledge, no prior owner of any such property or any tenant,
subtenant, prior tenant or prior subtenant have used Hazardous Materials on,
from, or affecting such property in any manner which violates any applicable
Environmental Law.

         SECTION 4.13. INVESTMENT COMPANY ACT. Neither the Company nor any
Corporate Guarantor is an "investment company", or a company "controlled" by an
"investment company", within the meaning of the Investment Company Act of 1940,
as amended.

         SECTION 4.14. NO DEFAULT. No Default or Event of Default has occurred
and is continuing.

         SECTION 4.15. MATERIAL CONTRACTS. All Material Contracts are disclosed
on Schedule V hereto. Each Material Contract is in full force and effect and is
binding upon and enforceable against the Company and any Corporate Guarantor, in
each case, to the extent they are a party thereto, and, to the Company's
knowledge, all other parties thereto in accordance with its terms, and there
exists no default, in any material respect, under any Material Contract by the
Company or any Corporate Guarantor or, to the Company's knowledge, by any other
party thereto which has not been fully cured or waived.

         SECTION 4.16. PERMITS AND LICENSES. Each of the Company and each
Corporate Guarantor has all permits, licenses, certifications, authorizations
and approvals required for it lawfully to own and operate their respective
businesses except where the failure to obtain or retain such permits, licenses,
certifications, authorizations or approvals could not reasonably be expected to
result in a Material Adverse Effect.

         SECTION 4.17. COMPLIANCE WITH LAW. The Company and each Corporate
Guarantor are in compliance, with all laws, rules, regulations, orders and
decrees which are applicable to the Company or any Corporate Guarantor, or to
any of their respective properties, except where the failure to be in compliance
cannot reasonably be expected to result in a Material Adverse Effect.

         SECTION 4.18. SECURITY AGREEMENTS. Each Security Agreement executed by
the Company and each Corporate Guarantor shall constitute a valid and continuing
lien on and security

                                       27

<PAGE>   33

interest in the collateral referred to in such Security Agreement in favor of
the Administrative Agent for the ratable benefit of the Lenders, which shall be,
upon the filing of the Uniform Commercial Code financing statements delivered on
the Closing Date on behalf of the Company and each Corporate Guarantor at the
offices in the jurisdictions listed on Schedule C to each Security Agreement
prior to all other Liens (other than Permitted Liens), claims and rights of all
other Persons and shall be enforceable as such against all other Persons.

         SECTION 4.19. PLEDGE AGREEMENT. The Pledge Agreement executed by the
Company shall, pursuant to its terms, constitute a valid and continuing lien on
and security interest in the collateral referred to in such Pledge Agreement in
favor of the Administrative Agent, for the ratable benefit of the Lenders, which
shall be prior to all other Liens, claims and rights of all other Persons in
such collateral.

         SECTION 4.20. DISCLOSURE. Neither this Agreement, any other Loan
Document, nor any other document, certificate or written statement furnished to
the Administrative Agent or any Lender (as modified or supplemented by other
information so furnished) by or on behalf of the Company or any Corporate
Guarantor for use in connection with the transactions contemplated by this
Agreement contains any untrue statement of material fact or omits to state a
material fact necessary in order to make the statements contained herein or
therein not misleading in light of the circumstances in which they were made;
provided that with respect to projected financial information, the Company
represents only that such information was prepared in good faith based on
assumptions believed to be reasonable at the time.

                                    ARTICLE V
                              CONDITIONS OF LENDING

         SECTION 5.01. CONDITIONS TO LOANS. The several obligations of each
Lender to make the Loans hereunder are subject to the following conditions
precedent:

         (a) REVOLVING CREDIT NOTE. On or prior to the Closing Date, the
Administrative Agent shall have received for the account of each Lender a
Revolving Credit Note, each duly executed by the Company.

         (b) GUARANTIES. On or prior to the Closing Date, the Administrative
Agent shall have received, with a counterpart for each Lender, the Guaranties
duly executed by each Corporate Guarantor.

         (c) SECURITY DOCUMENTS. On or prior to the Closing Date, the
Administrative Agent shall have received (i) the Security Documents duly
executed by the Company and each Corporate Guarantor to the extent it is a party
thereto and (ii) such stock certificates or members certificates pledged
pursuant to the Pledge Agreement and undated stock powers, if applicable, duly
executed in blank by the Company, as shall be necessary.

                                       28
<PAGE>   34

         (d) OPINION OF COUNSEL. On or prior to the Closing Date, the
Administrative Agent shall have received, with a copy for each Lender, a written
opinion of counsel for the Company and the Corporate Guarantors dated the
Closing Date and addressed to the Administrative Agent and the Lenders,
substantially in the form of Exhibit F attached hereto.

         (e) SUPPORTING DOCUMENTS. On or prior to the Closing Date, the
Administrative Agent shall have received, with a copy for each Lender, (i) a
certificate of good standing for the Company and each Corporate Guarantor from
the secretary of state of the states of their organizational jurisdiction dated
as of a recent date; (ii) certified copies of the Certificate of Incorporation
and By- laws, the partnership agreement or Articles of Organization and
Operating Agreement, as applicable, of the Company and each Corporate Guarantor;
(iii) a certificate of the Secretary or an Assistant Secretary of the Company
and each Corporate Guarantor dated the Closing Date and certifying: (x) that
neither the Certificate of Incorporation nor the By-laws or the Articles of
Organization or Operating Agreement, as applicable, of the Company or of any
Corporate Guarantor has been amended since the date of their certification (or
if there has been any such amendment, attaching a certified copy thereof); (y)
that attached thereto is a true and complete copy of resolutions adopted by the
Board of Directors of the Company and by the board of directors or other
governing body or Persons of each Corporate Guarantor authorizing the execution,
delivery and performance of each Loan Document to which it is a party and, with
respect to the Company, the borrowings and other extensions of credit hereunder;
and (z) the incumbency and specimen signature of each officer of the Company and
of each officer or other authorized Person of each Corporate Guarantor executing
each Loan Document to which the Company or any Corporate Guarantor is a party
and any certificates or instruments furnished pursuant hereto or thereto, and a
certification by another officer of the Company and each Corporate Guarantor as
to the incumbency and signature of the Secretary or Assistant Secretary of the
Company and each Corporate Guarantor; and (iv) such other documents as the
Administrative Agent may reasonably request.

         (f) INSURANCE. On or prior to the Closing Date, the Administrative
Agent shall have received a certificate or certificates of insurance from an
independent insurance broker or brokers confirming the insurance required to be
maintained pursuant to Section 6.01 hereof, and evidence that the Administrative
Agent has been named loss payee and additional insured with respect to each
policy of such insurance.

         (g) FILINGS, REGISTRATIONS AND RECORDINGS. On or prior to the Closing
Date, the Administrative Agent shall have received each document, including,
without limitation, UCC-1 Financing Statements required by the Security
Documents or under the laws of any jurisdiction to be filed, registered or
recorded in order to create, in favor of the Administrative Agent for the
ratable benefit of the Lenders, a perfected first lien on the collateral
described in the Security Documents, in form to be properly filed, registered or
recorded, in each office in each such jurisdiction.

         (h) ASSETS FREE FROM LIENS. Prior to the Closing Date, the
Administrative Agent shall have received UCC-1 financing statement, tax and
judgment lien searches evidencing that the Company's and each Corporate
Guarantor's accounts receivable, inventory and equipment and all

                                       29
<PAGE>   35

other assets of the Company and each Corporate Guarantor are free and clear of
all Liens except Permitted Liens.

         (i) FEES AND EXPENSES. On or prior to the Closing Date, the
Administrative Agent shall have received for itself and for the account of the
Lenders (i) all fees payable to the Lenders pursuant to the Loan Documents on or
prior to the Closing Date and (ii) reimbursement of expenses in accordance with
Section 10.03.

         (j) NO LITIGATION. There shall exist no action, suit, investigation,
litigation or proceeding affecting the Company or any Corporate Guarantor
pending or threatened before any court, governmental agency or arbiter that
could reasonably be expected to have, individually or in the aggregate, a
Material Adverse Effect.

         (k) CONSENTS AND APPROVALS. All governmental and third party consents
and approvals necessary in connection with the transactions contemplated by this
Agreement and the other Loan Documents shall have been obtained (without the
imposition of any conditions that are not acceptable to the Required Lenders)
and shall remain in effect, and no law or regulation shall be applicable in the
reasonable judgment of the Required Lenders that imposes materially adverse
conditions upon the transactions contemplated hereby.

         (l) NO MATERIAL ADVERSE CHANGES. There shall not have occurred any
material adverse change in the business, operations, properties, prospects or
condition (financial or otherwise) of the Company or any Corporate Guarantor
since September 30, 2000.

         (m) COMPLETION OF PROCEEDINGS. All corporate and other proceedings, and
all documents, instruments and other legal matters in connection with the
transactions contemplated by the Loan Documents, shall be satisfactory in form
and substance to the Administrative Agent, the Lenders and their counsel.

         (n) OTHER INFORMATION, DOCUMENTATION. The Administrative Agent and the
Lenders shall have received such other and further information and documentation
as any of them may reasonably require, including, but not limited to, any
information or documentation relating to compliance by the Company and each
Corporate Guarantor with the requirements of all Environmental Laws.

         SECTION 5.02. CONDITIONS TO ALL EXTENSIONS OF CREDIT. The obligation of
the Lenders to make each Loan hereunder, including, without limitation, the
initial Loan, is subject to the conditions precedent set forth in Section 5.01
and 5.03, to the extent applicable, and the following conditions precedent:

         (a) REPRESENTATIONS AND WARRANTIES. The representations and warranties
by the Company and each Corporate Guarantor pursuant to this Agreement and the
other Loan Documents to which each is a party shall be true and correct in all
material respects on and as of the Borrowing

                                       30
<PAGE>   36

Date for such Loan, with the same effect as though such representations and
warranties had been made on and as of such date unless such representation is as
of a specific date, in which case, as of such date.

         (b) NO DEFAULT. No Default or Event of Default shall have occurred and
be continuing on the Borrowing Date for such Loan.

         Each Borrowing hereunder shall constitute a representation and warranty
of the Company that the statements contained in clauses (a) and (b) of this
Section 5.02 are true and correct on and as of the Borrowing Date for such Loan.

         SECTION 5.03 CONDITIONS TO EACH ACQUISITION TERM LOAN. The obligation
of the Lenders to make each Acquisition Term Loan is subject to the conditions
precedent set forth in Sections 5.01 and 5.02 and the following conditions
precedent:

         (a) ACQUISITION TERM NOTE. On or prior to the Closing Date, the
Administrative Agent shall have received for the account of each Lender an
Acquisition Term Note, each duly executed by the Company and dated the Closing
Date.

         (b) CONSIDERATION. The aggregate consideration, including, without
limitation, cash, notes, stock, guarantees and other contingent obligations,
liabilities and Indebtedness, in the event of an acquisition of assets,
liabilities assumed, compensation to be paid to former shareholders of the
seller pursuant to consulting agreements or non-compete agreements, fees,
earn-out provisions, any deferred portions of the purchase price or any other
costs (excluding transaction costs) paid or payable in connection with the
related Permitted Financed Acquisition shall not exceed (unless otherwise agreed
to in writing by the Required Lenders) 20% of Consolidated Net Worth, as
reported by the Company on its most recent quarterly financial statement
delivered under Section 6.03(a) or (b).

         (c) SECURITY AGREEMENT AND GUARANTY. On or prior to the Borrowing Date
for such Acquisition Term Loan, the Administrative Agent shall have received (i)
a Security Agreement duly executed by the Person acquired in the related
Permitted Financed Acquisition and (ii) a Corporate Guaranty duly executed by
each Person, if any, acquired in the related Permitted Financed Acquisition.

         (d) RECEIPTS OF CONSENTS. The Administrative Agent shall be reasonably
satisfied that all third party and governmental consents and approvals,
necessary in connection with the consummation of the related Permitted Financed
Acquisition shall have been obtained.

         (e) ASSETS FREE FROM ENCUMBRANCES. The Administrative Agent shall have
received evidence satisfactory to it that the shares or other interest in the
Person, or the assets of the Person, which is the subject of the related
Permitted Financed Acquisition are free and clear of all Liens, except those
Liens permitted pursuant to Section 7.01, including, without limitation, with
respect

                                       31
<PAGE>   37

to the acquisition of shares or other equity interests, free of any restrictions
on transfer other than restrictions applicable to the sale of securities under
federal and state securities laws and regulations generally.

         (f) HISTORICAL FINANCIAL STATEMENTS. The Administrative Agent shall
have received, 10 days prior to the date of such Acquisition Term Loan,
financial statements of the Person being acquired in the related Permitted
Financed Acquisition in the same form and substance as those required to be
delivered by the Company under Section 6.03(a)(i), to the extent such are
available, for the previous three (3) fiscal years, provided, however in the
event such historical financial statements are not available for three fiscal
years, the Company shall so advise the Administrative Agent and the Company
shall then be required to provide the Administrative Agent only with such
historical financials as are available.

         (g) PRO FORMA FINANCIAL STATEMENTS. The Administrative Agent shall have
received, 10 days prior to the date of such Acquisition Term Loan, pro forma
balance sheet and income statements of the Company and its Subsidiaries (after
giving effect to the related Permitted Financed Acquisition as of the then most
recent fiscal quarter ended for which financial statements are required to be
provided to the Lenders pursuant to Section 6.02(b)) demonstrating that upon
consummation of such Permitted Financed Acquisition, the Company will be in
compliance with the financial covenants contained in Section 7.13.

         (h) PROJECTIONS. The Administrative Agent shall have received 10 days
prior to the date of such Acquisition Term Loan combined projections for the
Company and the Person, or the assets of the Person, which is the subject of the
related Permitted Financed Acquisition for a period of three (3) years, which
projections shall be in form reasonably satisfactory to the Administrative
Agent.

         (i) ACQUISITION DOCUMENTS. The Administrative Agent shall have been
provided 10 days prior to the date of such Acquisition Term Loan with copies of
the relevant purchase agreement and shall be satisfied in all respects with the
terms of the proposed acquisition.

         (j) PLEDGE OF STOCK. In the event of an acquisition of an equity
interest in any Person, the Administrative Agent shall have received
concurrently with the consummation of the related Permitted Financed Acquisition
(i) an amended Schedule A to the Pledge Agreement adding a reference to the
stock of the Person acquired in such Permitted Financed Acquisition and (ii) the
applicable share certificate(s) and undated stock power(s) executed in blank,
with respect to such pledged stock.

         (k) CERTIFICATE OF OFFICER. The Administrative Agent shall have
received on or prior to the Borrowing Date for such Acquisition Term Loan, a
certificate of an Executive Officer of the Company certifying that the related
Permitted Financed Acquisition constitutes an Eligible Acquisition.

                                       32
<PAGE>   38

                                   ARTICLE VI
                              AFFIRMATIVE COVENANTS

         The Company covenants and agrees with each Lender that so long as the
Total Credit Commitments remain in effect, or any of the principal of or
interest on the Notes or any other Obligations hereunder shall be unpaid, it
will, and will cause each Corporate Guarantor to:

         SECTION 6.01. EXISTENCE, PROPERTIES, INSURANCE. Do or cause to be done
all things necessary to preserve and keep in full force and effect its
corporate, partnership or limited liability company, as applicable, existence,
rights and franchises and comply in all material respects with all laws
applicable to it; at all times maintain, preserve and protect all franchises and
trade names and preserve all of its property used or useful in the conduct of
its business and keep the same in good repair, working order and condition and
from time to time make, or cause to be made, all needful and proper repairs,
renewals, replacements, betterments and improvements thereto so that the
business carried on in connection therewith may be properly and advantageously
conducted in the ordinary course at all times; and at all times maintain
insurance covering its assets and its businesses with financially sound and
reputable insurance companies or associations in such amounts and against such
risks (including, without limitation, hazard, business interruption, public
liability and product liability) as are usually carried by companies engaged in
the same or similar business. Each such policy of insurance shall provide for at
least thirty (30) days' prior written notice to the Administrative Agent of any
modification or cancellation of such policies and shall name the Administrative
Agent as loss payee and additional insured. The Company shall provide to the
Administrative Agent promptly upon receipt thereof evidence of the annual
renewal of each such policy.

         SECTION 6.02. PAYMENT OF INDEBTEDNESS AND TAXES. (a) Pay all
indebtedness and obligations, now existing or hereafter arising, as and when due
and payable, except where the failure to do so would not reasonably be expected
to have a Material Adverse Effect and (b) pay and discharge or cause to be paid
and discharged promptly all taxes, assessments and government charges or levies
imposed upon it or upon its income and profits, or upon any of its property,
real, personal or mixed, or upon any part thereof, before the same shall become
in default, as well as all lawful claims for labor, materials and supplies or
otherwise which, if unpaid, might become a lien or charge upon such properties
or any part thereof; provided, however, that neither the Company nor any
Corporate Guarantor shall be required to pay and discharge or cause to be paid
and discharged any such tax, assessment, charge, levy or claim so long as the
validity thereof shall be contested in good faith by appropriate proceedings,
and the Company or such Corporate Guarantor, as the case may be, shall have set
aside on its books adequate reserves determined in accordance with Generally
Accepted Accounting Principles with respect to any such tax, assessment, charge,
levy or claim so contested; provided, further, that, subject to the foregoing
proviso, the Company and each Corporate Guarantor will pay or cause to be paid
all such taxes, assessments, charges, levies or claims upon the commencement of
proceedings to foreclose any lien which has attached as security therefor.

                                       33
<PAGE>   39

         SECTION 6.03. FINANCIAL STATEMENTS, REPORTS, ETC. Furnish to the
Administrative Agent and each Lender:

                  (a) (i) as soon as available, but in any event within one
         hundred twenty (120) days after the end of each fiscal year of the
         Company, a copy of the audited consolidated balance sheet of the
         Company and its consolidated Subsidiaries as of the end of such year
         and the related audited consolidated statements of income, shareholders
         equity and cash flow for such year, in each case, prepared in
         accordance with Generally Accepted Accounting Principles setting forth
         in comparative form the respective figures as of the end of and for the
         previous fiscal year, and accompanied by a report thereon of
         independent certified public accountants of recognized standing
         selected by the Company and satisfactory to the Lenders (the
         "Auditor"), which report shall be unqualified; and (ii) as soon as
         available, but in any event within one hundred twenty (120) days after
         the end of each fiscal year of the Company, a copy of the management
         prepared consolidating financial statements of the Company and its
         consolidated Subsidiaries setting forth in comparative form the
         respective figures as of the end of and for the previous fiscal year
         and which support the financial statements delivered pursuant to clause
         (i), in each case of (i) and (ii) prepared in accordance with Generally
         Accepted Accounting Principles, applied on a consistent basis, and with
         respect to the statements referred to in clause (ii) accompanied by a
         certificate to that effect executed by the Chief Financial Officer;

                  (b) as soon as available, but in any event not later than
         ninety (90) days after the end of each quarterly period of each fiscal
         year of the Company, a copy of the unaudited interim consolidated and
         consolidating balance sheet of the Company and its consolidated
         Subsidiaries as of the end of each such quarter and the related
         unaudited interim consolidated and consolidating statements of income,
         shareholders equity and cash flow for such quarter and the portion of
         the fiscal year through such date and setting forth in each case in
         comparative form the respective figures for the corresponding date and
         period in the previous fiscal year, in each case prepared under the
         direction of the Chief Financial Officer in accordance with Generally
         Accepted Accounting Principles, applied on a consistent basis, and
         accompanied by a certificate to that effect executed by the Chief
         Financial Officer;

                  (c) a certificate prepared and signed by the Chief Financial
         Officer with each delivery required by clauses (a)(ii) and (b), as to
         whether or not, as of the close of such preceding period and at all
         times during such preceding period, the Company or each of its
         Subsidiaries, as the case may be, was in compliance with all the
         provisions in this Agreement, showing computation of financial
         covenants and quantitative negative covenants, and if the Chief
         Financial Officer shall have obtained knowledge of any default in such
         compliance or notice of such default, it shall disclose in such
         certificate such default or defaults or notice thereof and the nature
         thereof, whether or not the same shall constitute a Default or an Event
         of Default;

                                       34
<PAGE>   40

                  (d) a certificate prepared and signed by the Auditor with each
         delivery required by clause (a) above stating whether they obtained
         knowledge during the course of their examination of such financial
         statements of any Default or Event of Default (which certificate may be
         limited to the extent required by any accounting rules or guidelines
         binding upon the Auditors);

                  (e) at all times indicated in clause (a) above, a copy of the
         management letter, if any, prepared by the Auditor;

                  (f) promptly after filing thereof, copies of all regular and
         periodic financial information, proxy materials and other information
         and reports which the Company or any of its Subsidiaries shall file
         with the Securities and Exchange Commission;

                  (g) promptly after submission to any government or regulatory
         agency, all documents and information furnished to such government or
         regulatory agency other than such documents and information prepared in
         the normal course of business and which could not reasonably be
         expected to result in any materially adverse action to be taken by such
         agency;

                  (h) as soon as available and in any event within forty-five
         (45) days after the end of each fiscal quarter, quarterly schedules of
         accounts receivable and accounts payables aging (listing each customer
         or vendor and the total amount owing to or from each such customer or
         vendor but not listing the individual invoices which comprise the
         totals), a revenue summary and a backlog and active jobs report, all in
         form and content satisfactory to the Lenders; provided that such
         reports may, at the option of the Company, be provided by electronic
         mail in an Excel file format;

                  (i) simultaneously with the delivery of the financial
         reporting statements referred to in (a)(i), annual financial
         projections (including a balance sheet and income statement) of the
         Company and its Subsidiaries for the then current fiscal year, which
         projections shall be in form satisfactory to the Administrative Agent;
         and

                  (j) promptly, from time to time, such other information
         regarding the operations, business affairs and condition (financial or
         otherwise) of the Company or any of its Subsidiaries as any Lender may
         request.

         SECTION 6.04. BOOKS AND RECORDS; ACCESS TO PREMISES. Keep adequate
records and proper books of record and account in which complete entries will be
made in a manner to enable the preparation of financial statements in accordance
with Generally Accepted Accounting Principles, and which shall reflect all
financial transactions of the Company and each of its Subsidiaries. At any time,
and from time to time (upon not less than three (3) Business Days' prior notice
if no Default or Event of Default has occurred and is continuing provided no
prior notice shall be required if a Default or Event of Default shall have
occurred and be continuing), permit any

                                       35
<PAGE>   41

Lender or any agent or representative thereof, to examine and make copies of any
abstracts from the books and records of such information which the Lenders deem
necessary or desirable (including, without limitation, the financial records of
the Company and the Corporate Guarantors) and to visit the properties of the
Company or any Corporate Guarantor and to discuss the affairs, finances and
accounts of the Company or any Corporate Guarantor with any of their respective
executive officers or the Company's independent accountants; and in the event
that (i) the Aggregate Outstandings are in excess of $5,000,000, or (ii) a
Default or Event of Default shall have occurred and be continuing, during normal
business hours, permit either any Lender or any agent or representative thereof,
to examine and audit at the expense of the Company the inventory and receivables
of the Company and such Corporate Guarantor, provided that so long as no Default
or Event of Default has occurred and is then continuing, the Company shall only
be obligated to pay the costs and charges of one field audit in each fiscal year
(such costs and charges not to exceed $10,000 per audit).

         SECTION 6.05. NOTICE OF ADVERSE CHANGE. Promptly notify each Lender in
writing of (a) any change in the business or the operations of the Company or
any Corporate Guarantor which could reasonably be expected to have a Material
Adverse Effect, and (b) any information which indicates that any financial
statements which are the subject of any representation contained in this
Agreement, or which are furnished to the Administrative Agent or the Lenders
pursuant to this Agreement, fail, in any material respect, to present fairly, as
of the date thereof and for the period covered thereby, the financial condition
and results of operations purported to be presented therein, disclosing the
nature thereof.

         SECTION 6.06. NOTICE OF DEFAULT. Promptly notify each Lender of any
Default or Event of Default which shall have occurred, which notice shall
include a written statement as to such occurrence, specifying the nature thereof
and the action (if any) which is proposed to be taken with respect thereto.

         SECTION 6.07. NOTICE OF LITIGATION. Promptly notify each Lender of any
action, suit or proceeding at law or in equity or by or before any governmental
instrumentality or other agency which involves this Agreement or any other Loan
Document or any of the transactions contemplated herein or therein or which, if
adversely determined against the Company or any Corporate Guarantor on the basis
of the allegations and information set forth in the complaint or other notice of
such action, suit or proceeding, or in the amendments thereof, if any, could
reasonably be expected to have a Material Adverse Effect or which involve a
claim against the Company or any Corporate Guarantor in excess of $200,000 which
is not fully covered by insurance (other than reasonable and customary
deductibles).

         SECTION 6.08. NOTICE OF DEFAULT IN OTHER AGREEMENTS. Promptly notify
each Lender of any default in the performance, observance or fulfillment of any
of the obligations, covenants or conditions contained in any agreement or
instrument to which the Company or any Corporate Guarantor is a party which
default could reasonably be expected to have a Material Adverse Effect.

                                       36
<PAGE>   42

         SECTION 6.09. NOTICE OF ERISA EVENT. Promptly deliver to each Lender a
certificate of the Chief Financial Officer of the Company setting forth details
as to such occurrence and such action, if any, which the Company, such Corporate
Guarantor or such ERISA Affiliate is required or proposes to take, together with
any notices required or proposed to be given to or filed with or by the Company,
such Corporate Guarantor, such ERISA Affiliate, the PBGC, a Plan participant or
the Plan administrator, with respect thereto: that a Reportable Event has
occurred with respect to a Plan, that an accumulated funding deficiency has been
incurred or an application may be or has been made to the Secretary of the
Treasury for a waiver or modification of the minimum funding standard (including
any required installment payments) or an extension of any amortization period
under Section 412 of the Code with respect to a Plan, that a Plan has been
terminated, reorganized, partitioned or declared insolvent under Title IV of
ERISA, that one or more Plans have an Unfunded Current Liability giving rise to
a Lien under ERISA, that proceedings may be or have been instituted to terminate
or appoint a trustee to administer a Plan, that a proceeding has been instituted
pursuant to Section 515 of ERISA to collect a delinquent contribution to a Plan,
or that the Company, any Corporate Guarantor or any ERISA Affiliate will incur
any liability (including any contingent or secondary liability) to or on account
of the termination of or withdrawal from a Plan under Section 4062, 4063, 4064,
4201 or 4204 of ERISA. The Company will deliver to each Lender a complete copy
of the annual report (Form 5500) of each Plan that is a single employer Plan
(within the meaning of Section 4001(a)(15) of ERISA), filed with the Internal
Revenue Service. In addition to any certificates or notices delivered to each
Lender pursuant to the first sentence hereof, copies of annual reports and any
other notices received by the Company or any Corporate Guarantor required to be
delivered to each Lender hereunder shall be delivered to each Lender no later
than ten days after the later of the date such report or notice has been filed
with the Internal Revenue Service or the PBGC, given to Plan participants or
received by the Company or a Corporate Guarantor.

         SECTION 6.10. NOTICE OF ENVIRONMENTAL LAW VIOLATIONS. Promptly notify
each Lender of the receipt of any notice of an action, suit, or proceeding
before any court or governmental department, commission, board, bureau, agency
or instrumentality, domestic or foreign, pending against the Company or any
Corporate Guarantor relating to any alleged violation of any Environmental Law
which could reasonably be expected to have a Material Adverse Effect.

         SECTION 6.11. NOTICE REGARDING MATERIAL CONTRACTS. Promptly notify each
Lender of (a) any termination (prior to the end of its stated term), material
amendment, material supplement or other material modification of any Material
Contract and (b) the occurrence of a default by the Company or by any other
party to any Material Contract of which the Company is aware.

         SECTION 6.12. COMPLIANCE WITH APPLICABLE LAWS. Comply with the
requirements of all applicable laws, rules, regulations and orders of any
Governmental Authority.

         SECTION 6.13. SUBSIDIARIES. Promptly notify the Lenders, prior to the
occurrence thereof, of the creation, establishment or acquisition of any
Subsidiary of the Company or any Corporate Guarantor not existing on the date
hereof and (a) execute, and cause each Corporate Guarantor owning an equity
interest in such Subsidiary to execute a Pledge Agreement with respect

                                       37
<PAGE>   43

to all the equity interests of such Subsidiary owned by the Company or the
Corporate Guarantors, and (b) cause each Subsidiary to execute a Corporate
Guaranty and such Security Documents that the Lenders shall require, including,
but not limited to, a Security Agreement, concurrently with the creation,
establishment or acquisition of such Subsidiary, and concurrently with the
delivery of each Security Document and Corporate Guaranty pursuant to this
Section 6.13 provide to the Administrative Agent the supporting documents
identified in clauses (i), (ii), and (iii) of Section 5.01(e) in each case with
respect to the Subsidiary executing the same, together with a favorable written
opinion of counsel to such Subsidiary and each Person pledging its equity
interest in such Subsidiary pursuant to a Pledge Agreement in form and substance
satisfactory to the Lenders, as to the due execution, delivery and
enforceability of such documents and such other matters as the Lenders may
request.

         SECTION 6.14. ENVIRONMENTAL LAWS. Comply in all material respects with
the requirements of all Environmental Laws, provide to the Lenders all
documentation in connection with such compliance that the Lenders may reasonably
request, and defend, indemnify, and hold harmless the Administrative Agent and
each Lender and their respective employees, agents, officers, and directors,
from and against any claims, demands, penalties, fines, liabilities,
settlements, damages, costs, or expenses of whatever kind or nature, known or
unknown, contingent or otherwise, arising out of, or in any way related to, (a)
the presence, disposal, or release of any Hazardous Materials on any property at
any time owned or occupied by the Company or any Corporate Guarantor; (b) any
personal injury (including wrongful death) or property damage (real or personal)
arising out of or related to such Hazardous Materials; (c) any lawsuit brought
or threatened, settlement reached, or government order relating to such
Hazardous Materials, and/or (d) any violation of applicable Environmental Laws,
including, without limitation, reasonable attorney and consultant fees,
investigation and laboratory fees, court costs, and litigation expenses.

         SECTION 6.15. FURTHER ASSURANCES. Execute any and all further
documents, agreements and instruments, and take all further actions, which the
Administrative Agent or the Lenders shall reasonably request in order to
effectuate the transactions contemplated by this Agreement and in order to
grant, preserve, protect and perfect the liens purported to be created hereunder
and under the Security Documents.

                                   ARTICLE VII
                               NEGATIVE COVENANTS

         The Company covenants and agrees with each Lender that so long as the
Total Credit Commitments remain in effect or any of the principal of or interest
on any Note or any other Obligations hereunder shall be unpaid, it will not, and
will not cause or permit any Corporate Guarantor, directly or indirectly, to:

         SECTION 7.01. LIENS. Incur, create, assume or suffer to exist any Lien
on any of their respective assets now or hereafter owned, other than:

                                       38
<PAGE>   44

                  (a) Liens existing on the date hereof as set forth on Schedule
II attached hereto, including any renewals or extensions thereof; provided that
no such Lien is extended to cover any additional property and that the amount of
Indebtedness secured thereby is not increased;

                  (b) Liens for taxes, assessments or other governmental charges
or levies not yet delinquent or which are being contested in good faith by
appropriate proceedings, provided, however, that adequate reserves with respect
thereto are maintained on the books of the Company or any of its Subsidiaries in
accordance with Generally Accepted Accounting Principles;

                  (c) carriers', warehousemens', mechanics', suppliers' or other
like Liens arising in the ordinary course of business and not overdue for a
period of more than 30 days or which are being contested in good faith by
appropriate proceedings in a manner which will not jeopardize or diminish in any
material respect the interest of the Administrative Agent and the Lenders in any
of the collateral subject to the Security Documents;

                  (d) Liens incurred or deposits made to secure the performance
of tenders, bids, trade contracts (other than for borrowed money), leases,
statutory obligations, surety, performance and appeal bonds, and other
obligations of similar nature incurred in the ordinary course of business;

                  (e) any attachment, judgment or similar Lien arising in
connection with any court or governmental proceeding provided that the execution
or other enforcement of such Lien is effectively stayed;

                  (f) easements, rights of way, restrictions and other similar
charges or encumbrances which in the aggregate do not interfere in any material
respect with the occupation, use and enjoyment by the Company or any Corporate
Guarantor of the property or assets encumbered thereby in the normal course of
their respective business or materially impair the value of the property subject
thereto;

                  (g) deposits under workmen's compensation, unemployment
insurance and social security laws;

                  (h) purchase money liens for fixed or capital assets,
including obligations with respect to Capital Leases; provided in each case (i)
no Default or Event of Default shall have occurred and be continuing or shall
occur after giving effect to such Lien, (ii) such purchase money Lien does not
exceed 100% of the purchase price of, and encumbers only, the property acquired
and (iii) such purchase money Lien does not secure any Indebtedness other than
in respect of the purchase price of the asset acquired;

                  (i) Liens granted to the Administrative Agent for the ratable
benefit of the Lenders pursuant to the Security Documents;

                                       39
<PAGE>   45

                  (j) Liens securing indebtedness for the deferred purchase
price of stock, assets or other property permitted pursuant to Section 7.02(h),
provided such liens attach solely to the property being acquired; and

                  (k) Liens described in Section 7.02(i) securing the
Indebtedness permitted pursuant to Section 7.02(i).

         SECTION 7.02. INDEBTEDNESS. Incur, create, assume or suffer to exist or
otherwise become liable in respect of any Indebtedness, other than:

                  (a) Indebtedness incurred prior to the date hereof as
described in Schedule III attached hereto, including any renewals or extensions
thereof; provided no such renewal or extension results in an increase in the
aggregate principal amount of such Indebtedness;

                  (b) Indebtedness to the Lenders, whether under this Agreement,
the Notes or any other Loan Document;

                  (c) Indebtedness for trade payables incurred in the ordinary
course of business; provided such payables shall be paid or discharged when due;

                  (d) Indebtedness consisting of guarantees permitted pursuant
to Section 7.03;

                  (e) Subordinated Debt; provided, however, that no Default or
Event of Default shall have occurred and is continuing or would occur after
giving effect to the incurrence of such Subordinated Debt;

                  (f) Indebtedness owing by the Company to any Corporate
Guarantor or by any Corporate Guarantor to any other Corporate Guarantor;

                  (g) Indebtedness secured by purchase money Liens as permitted
under Section 7.01(h); provided that no Default or Event of Default shall have
occurred and be continuing or would occur after giving effect to the incurrence
of such Indebtedness;

                  (h) indebtedness for the deferred purchase price of stock,
assets or other property owing to a seller pursuant to a Permitted Non-Financed
Acquisition; provided, however, that (i) such indebtedness constitutes all or a
portion of the consideration (as determined pursuant to Section 5.03(b)) payable
with respect to such acquisition, (ii) such indebtedness does not exceed more
than 100% of the original purchase price of such acquisition, and (iii) the
aggregate principal amount of all such indebtedness at any one time outstanding
shall not exceed an amount equal to (x) $20,000,000 less (y) the aggregate
outstanding principal amount of indebtedness permitted pursuant to Section
7.02(i); and

                                       40
<PAGE>   46

                  (i) term indebtedness owing by an entity acquired pursuant to
a Permitted Non- Financed Acquisition to banks or other financial institutions
secured solely by a mortgage or deed of trust which encumbers real property and
fixtures of such entity provided the aggregate principal amount of all such
indebtedness at any one time outstanding shall not exceed an amount equal to (x)
$20,000,000 less (y) the aggregate outstanding principal amount of indebtedness
permitted pursuant to Section 7.02(h).

         SECTION 7.03. GUARANTIES. Guarantee, endorse, become surety for, or
otherwise in any way become or be responsible for the Indebtedness or
obligations of any Person, whether by agreement to maintain working capital or
equity capital or otherwise maintain the net worth or solvency of any Person or
by agreement to purchase the Indebtedness of any other Person, or agreement for
the furnishing of funds, directly or indirectly, through the purchase of goods,
supplies or services for the purpose of discharging the Indebtedness of any
other Person or otherwise, or enter into or be a party to any contract for the
purchase of merchandise, materials, supplies or other property if such contract
provides that payment for such merchandise, materials, supplies or other
property shall be made regardless of whether delivery of such merchandise,
supplies or other property is ever made or tendered except:

                  (a) guaranties executed prior to the date hereof as described
on Schedule IV attached hereto but not including any renewals or extensions
thereof;

                  (b) endorsements of negotiable instruments for collection or
deposit in the ordinary course of business;

                  (c) guaranties of any Indebtedness under this Agreement or any
other Loan Document;

                  (d) guaranties by the Company of any Indebtedness of any
Corporate Guarantor permitted pursuant to Section 7.02 (other than Subordinated
Debt described in Section 7.02(e), unless such guaranty is subordinated at least
to the same extent as such Subordinated Debt); and

                  (e) guaranties by any Corporate Guarantor of any Indebtedness
of the Company or any other Corporate Guarantor permitted pursuant to Section
7.02 (other than Indebtedness described in Section 7.02(e)).

         SECTION 7.04. SALE OF ASSETS. Sell, lease, assign, transfer or
otherwise dispose of any of their now owned or hereafter acquired respective
properties and assets, whether or not pursuant to an order of a federal agency
or commission, except for (a) the sale of inventory disposed of in the ordinary
course of business, and (b) the sale or other disposition of properties or
assets no longer used or useful in the conduct of their respective businesses.

                                       41
<PAGE>   47

         SECTION 7.05. SALES OF RECEIVABLES. Sell, transfer, discount or
otherwise dispose of notes, accounts receivable or other obligations owing to
the Company or any Corporate Guarantor, with or without recourse, except for
collection in the ordinary course of business.

         SECTION 7.06. LOANS AND INVESTMENTS. Make or commit to make any
advance, loan, extension of credit, or capital contribution to or purchase or
hold beneficially any stock or other securities, or evidence of Indebtedness of,
purchase or acquire all or a substantial part of the assets of, or make or
permit to exist any interest whatsoever in, any other Person except (a) the
ownership of stock of any Subsidiaries existing as of the Closing Date or
created after the Closing Date or acquired after the date hereof, provided the
Company has complied with its obligations under Section 6.13 with respect to
such Subsidiary, (b) acquisitions expressly permitted pursuant to Section 7.12,
(c) Eligible Cash Equivalent Investments and (d) additional loans to, and
investments in, a Person, of which 50% or less of the capital stock, membership
interests or other ownership interests is owned by the Company and the Corporate
Guarantors, collectively, such loans and investments (as determined, with
respect to investments, based upon the original cost of such investment) not to
exceed $30,000,000 in the aggregate at any one time outstanding.

         SECTION 7.07. NATURE OF BUSINESS. Change or alter, in any material
respect, the nature of its business from the nature of the business engaged in
by it on the date hereof.

         SECTION 7.08. SALE AND LEASEBACK. Enter into any arrangement, directly
or indirectly, with any Person whereby it shall sell or transfer any property,
whether real or personal, used or useful in its business, whether now owned or
hereafter acquired, of it or any Corporate Guarantor, if at the time of such
sale or disposition it intends to lease or otherwise acquire the right to use or
possess (except by purchase) such property or like property for a substantially
similar purpose.

         SECTION 7.09. FEDERAL RESERVE REGULATIONS. Permit any Loan or the
proceeds of any Loan to be used for any purpose which violates or is
inconsistent with the provisions of Regulation T, U or X of the Board of
Governors of the Federal Reserve System.

         SECTION 7.10. ACCOUNTING POLICIES AND PROCEDURES. Permit any change in
the accounting policies and procedures of the Company or any Corporate
Guarantor, including a change in fiscal year, provided, however, that any policy
or procedure required to be changed by the Financial Accounting Standards Board
(or other board or committee thereof) in order to comply with Generally Accepted
Accounting Principles may be so changed.

         SECTION 7.11. HAZARDOUS MATERIALS. Cause or permit any of its
properties or assets to be used to generate, manufacture, refine, transport,
treat, store, handle, dispose of, transfer, produce or process Hazardous
Materials, except in compliance with all applicable federal, state and local
laws or regulations, or cause or permit, as a result of any intentional or
negligent act or omission on the part of the Company or any Corporate Guarantor,
a release of Hazardous Materials onto such property or asset or onto any other
property.

                                       42
<PAGE>   48

         SECTION 7.12. LIMITATIONS ON FUNDAMENTAL CHANGES, LIMITATIONS ON
CONSIDERATION. Merge or consolidate with, or sell, assign, lease or otherwise
dispose of (whether in one transaction or in a series of transactions) all or
substantially all of its assets (whether now or hereafter acquired) to, any
Person, or acquire all of the stock or all or substantially all of the assets or
the business of any Person or liquidate, wind up or dissolve or suffer any
liquidation or dissolution; provided, however, (i) a Corporate Guarantor may
merge or consolidate with any other Corporate Guarantor or merge with and into
the Company (provided the Company is the surviving entity) upon not less than
ten (10) days' prior written notice to the Administrative Agent, and (ii) the
Company may consummate Permitted Financed Acquisitions and Permitted
Non-Financed Acquisitions.

         SECTION 7.13. FINANCIAL COVENANTS.

                  (a) MINIMUM CONSOLIDATED EBITDA. Permit Consolidated EBITDA as
of the last day of any calendar quarter, commencing with the calendar quarter
ended September 30, 2000, to be less than $25,000,000.

                  (b) CONSOLIDATED FIXED CHARGE RATIO. Permit the Consolidated
Fixed Charge Ratio as of the last day of any calendar quarter, commencing with
the calendar quarter ended September 30, 2000, to be less than 1.75:1.00.

                  (c) CONSOLIDATED NET WORTH. Permit Consolidated Net Worth, as
of the last day of any calendar quarter, to be less than the amount set forth
below opposite the relevant quarter:

<TABLE>
<CAPTION>
          Quarter Ending                                                Amount
          --------------                                                ------
<S>                                                        <C>
September 30, 2000                                         $130,000,000

December 31, 2000, March 31, 2001, June                    $130,000,000 plus 50% of Consolidated Net
30, 2001 and September 30, 2001                            Income (but not net loss) for the quarter
                                                           ending December 31, 2000

December 31, 2001, March 31, 2002, June                    Actual Consolidated Net Worth as of
30, 2002 and September 30, 2002                            December 31, 2000 plus 50% of Consolidated
                                                           Net Income (but not net loss) for the fiscal
                                                           year ending December 31, 2001

December 31, 2002, March 31, 2003, June                    Actual Consolidated Net Worth as of
30, 2003 and September 30, 2003                            December 31, 2001 plus 50% of Consolidated
                                                           Net Income (but not net loss) for the fiscal
                                                           year ending December 31, 2002
</TABLE>

                                       43

<PAGE>   49

<TABLE>
<CAPTION>
          Quarter Ending                                                Amount
          --------------                                                ------
<S>                                                        <C>
December 31, 2003, March 31, 2004, June                    Actual Consolidated Net Worth as of
30, 2004 and September 30, 2004                            December 31, 2002 plus 50% of Consolidated
                                                           Net Income (but not net loss) for the fiscal
                                                           year ending December 31, 2003

December 31, 2004, March 31, 2005, June                    Actual Consolidated Net Worth as of
30, 2005 and September 30, 2005                            December 31, 2003 plus 50% of Consolidated
                                                           Net Income (but not net loss) for the fiscal
                                                           year ending December 31, 2004
</TABLE>

                  (d) CONSOLIDATED LEVERAGE RATIO. Permit the Consolidated
Leverage Ratio as of the last day of any calendar quarter, commencing with the
calendar quarter ended September 30, 2000, to exceed 1.00:1.00.

         SECTION 7.14. SUBORDINATED DEBT. Directly or indirectly prepay,
defease, purchase, redeem, or otherwise acquire any Subordinated Debt, or amend,
supplement or otherwise modify any of the terms thereof without the prior
written consent of the Required Lenders.

         SECTION 7.15. DIVIDENDS. Declare any dividend on, or make any payment
on account of, or set apart assets for a sinking or other analogous fund for the
purchase, redemption, defeasance, retirement or other acquisition of, any shares
of any class of stock of the Company or any Corporate Guarantor, or warrant to
purchase any class of stock of the Company or any Corporate Guarantor, whether
now or hereafter outstanding, or make any other distribution in respect thereof,
either directly or indirectly, whether in cash, securities or property or in
obligations of the Company or any Corporate Guarantor or in any combination
thereof, or permit any Subsidiary to make any payment on account of, or purchase
or otherwise acquire, any shares of any class of the stock of the Company or any
Corporate Guarantor or any warrant to purchase any class of stock of the Company
or any Corporate Guarantor from any Person. Notwithstanding the foregoing, (i)
provided no Default or Event of Default shall have occurred and be continuing or
would occur after giving effect to such repurchase hereafter described, the
Company may repurchase shares of its capital stock or warrants pursuant to and
in accordance with stock option or other benefit plans for management and
employees of the Company and its Subsidiaries in an amount not to exceed
$5,000,000 in any twelve (12) month period and (ii) provided no Default or Event
of Default shall have occurred and be continuing or would occur after giving
effect to such dividends or distributions hereafter described, in any fiscal
year the Company may make dividends and distributions to its stockholders in an
amount not to exceed 25% of Consolidated Net Income for the immediately
preceding fiscal year then ended.

         SECTION 7.16. TRANSACTIONS WITH AFFILIATES. Enter into any transaction,
including, without limitation, the purchase, sale, or exchange of property or
the rendering of any service, with any Affiliate, except in the ordinary course
of and pursuant to the reasonable requirements of the

                                       44
<PAGE>   50

Company's or any Corporate Guarantor's business and upon fair and reasonable
terms no less favorable to the Company or such Corporate Guarantor than they
would obtain in a comparable arms- length transaction with a Person not an
Affiliate.

         SECTION 7.17. IMPAIRMENT OF SECURITY INTEREST. Take or omit to take any
action which could reasonably be expected to have the result of impairing the
security interest in any property subject to a security interest in favor of the
Administrative Agent or the Lenders or grant to any person any interest
whatsoever in any property which is subject to a security interest in favor of
the Administrative Agent for the ratable benefit of the Lenders.

         SECTION 7.18. NEGATIVE PLEDGE. Enter into any agreement, arrangement or
understanding with any Person (other than the Lenders pursuant to this Agreement
or any of the other Loan Documents) which prohibits or limits the ability of the
Company or any of its Subsidiaries to create, incur, assume or suffer to exist
any Lien upon its property, assets or revenues, whether now owned or hereafter
acquired, except with respect to purchase money liens permitted pursuant to
Section 7.01(h) provided such limitation or prohibition is limited solely to the
property which is the subject of the purchase money lien.

                                  ARTICLE VIII
                                EVENTS OF DEFAULT

         SECTION 8.01. EVENTS OF DEFAULT. In the case of the happening of any of
the following events (each an "Event of Default"):

                  (a) failure to pay the principal of or interest on any Loan or
         any other Obligation as and when due and payable, and, with respect to
         interest payments and fee payments only, such failure shall continue
         unremedied for a period of three Business Days;

                  (b) default shall be made in (i) the due observance or
         performance of any covenant, condition or agreement of the Company or
         any Corporate Guarantor to be performed pursuant to Section 6.01 and
         such failure shall continue unremedied for a period of ten (10) days,
         or (ii) the due observance or performance of any other covenant,
         condition or agreement of the Company or any Corporate Guarantor to be
         performed pursuant to this Agreement or any other Loan Document (other
         than those specified in clause (a) or (b)(i) of this Section 8.01);

                  (c) any representation or warranty made or deemed made in this
         Agreement or any other Loan Document shall prove to be false or
         misleading in any material respect when made or given or when deemed
         made or given;

                  (d) any report, certificate, financial statement or other
         instrument furnished in connection with this Agreement or any other
         Loan Document or the borrowings hereunder,

                                       45
<PAGE>   51

         shall prove to be false or misleading in any material respect when
         made, given or furnished or when deemed made, given or furnished;

                  (e) default in the performance or compliance in respect of any
         agreement or condition relating to any Indebtedness of the Company or
         any Corporate Guarantor in excess of $200,000 individually or in the
         aggregate (other than the Notes), if the effect of such default is to
         accelerate the maturity of such Indebtedness or to permit the holder or
         obligee thereof (or a trustee on behalf of such holder or obligee) to
         cause such Indebtedness to become due prior to the stated maturity
         thereof, or, any such Indebtedness shall not be paid when due;

                  (f) the Company or any Corporate Guarantor shall (i)
         voluntarily commence any proceeding or file any petition seeking relief
         under Title 11 of the United States Code or any other federal or state
         bankruptcy, insolvency or similar law, (ii) consent to the institution
         of, or fail to controvert in a timely and appropriate manner, any such
         proceeding or the filing of any such petition, (iii) apply for or
         consent to the employment of a receiver, trustee, custodian,
         sequestrator or similar official for the Company or any Corporate
         Guarantor or for a substantial part of its property; (iv) file an
         answer admitting the material allegations of a petition filed against
         it in such proceeding, (v) make a general assignment for the benefit of
         creditors, (vi) take corporate action for the purpose of effecting any
         of the foregoing, or (vii) become unable or admit in writing its
         inability or fail generally to pay its debts as they become due;

                  (g) an involuntary proceeding shall be commenced or an
         involuntary petition shall be filed in a court of competent
         jurisdiction seeking (i) relief in respect of the Company or any
         Corporate Guarantor or of a substantial part of their respective
         property, under Title 11 of the United States Code or any other federal
         or state bankruptcy insolvency or similar law, (ii) the appointment of
         a receiver, trustee, custodian, sequestrator or similar official for
         the Company or any Corporate Guarantor or for a substantial part of
         their property, or (iii) the winding-up or liquidation of the Company
         or any Corporate Guarantor and such proceeding or petition shall
         continue undismissed for 30 days or an order or decree approving or
         ordering any of the foregoing shall continue unstayed and in effect for
         30 days;

                  (h) one or more orders, judgments or decrees for the payment
         of money in excess of $200,000 in the aggregate shall be rendered
         against the Company or any Corporate Guarantor and the same shall not
         have been paid in accordance with such judgment, order or decree or
         settlement and either (i) an enforcement proceeding shall have been
         commenced by any creditor upon such judgment, order or decree, or (ii)
         there shall have been a period of thirty (30) days during which a stay
         of enforcement of such judgment, order or decree, by reason of pending
         appeal or otherwise, was not in effect;

                  (i) any Plan shall fail to maintain the minimum funding
         standard required for any Plan year or part thereof or a waiver of such
         standard or extension of any amortization period

                                       46
<PAGE>   52

         is applied for or granted under Section 412 of the Code, any Plan is
         terminated by the Company or any ERISA Affiliate or the subject of
         termination proceedings under ERISA, any Plan shall have an Unfunded
         Current Liability, a Reportable Event shall have occurred with respect
         to a Plan or the Company, any Corporate Guarantor, or any ERISA
         Affiliate shall have incurred a liability to or on account of a Plan
         under Section 515, 4062, 4063, 4201 or 4204 of ERISA, and there shall
         result from any such event or events the imposition of a lien upon the
         assets of the Company or any Corporate Guarantor, the granting of a
         security interest on such assets, or a liability to the PBGC or a Plan
         or a trustee appointed under ERISA or a penalty under Section 4971 of
         the Code;

                  (j) any material provision of any Loan Document shall for any
         reason cease to be in full force and effect in accordance with its
         terms or the Company or any Corporate Guarantor shall so assert in
         writing;

                  (k) (i) both Kevin O'Kane and Hugh O'Kane, Jr. shall cease to
         own beneficially and of record at least 20% each of the voting capital
         stock of the Company, or (ii) both Hugh O'Kane and Kevin O'Kane shall
         cease to be executive officers and directors of the Company.

                  (l) any of the Liens purported to be granted pursuant to any
         Security Document shall fail or cease for any reason to be legal, valid
         and enforceable liens on the collateral purported to be covered thereby
         or shall fail or cease to have the priority purported to be created
         thereby; or

                  (m) any Corporate Guarantor shall fail to perform or observe
         any term or provision of such Corporate Guarantor's Corporate Guaranty
         or any representation or warranty made by any Corporate Guarantor in
         connection with such Corporate Guarantor's Corporate Guaranty shall
         prove to have been incorrect in any material respect when made or
         deemed made,

then, at any time thereafter during the continuance of any such event, the
Administrative Agent may, and, upon the request of the Required Lenders, shall,
by written or telephonic notice to the Company, take either or both of the
following actions, at the same or different times, (a) terminate the Total
Credit Commitments and (b) declare (i) the Notes, both as to principal and
interest and (ii) all other Obligations, to be forthwith due and payable without
presentment, demand, protest or other notice of any kind, all of which are
hereby expressly waived, anything contained herein or in the Notes to the
contrary notwithstanding; provided, however, that if an event specified in
Section 8.01(f) or (g) shall have occurred, the Total Credit Commitments shall
automatically terminate and interest, principal and amounts referred to in the
preceding clauses (i) and (ii) shall automatically be immediately due and
payable without presentment, demand, protest, or other notice of any kind, all
of which are expressly waived, anything contained herein or in the Notes to the
contrary notwithstanding.

                                       47
<PAGE>   53

                                   ARTICLE IX
                                   THE AGENTS

         SECTION 9.01. APPOINTMENT, POWERS AND IMMUNITIES. Each Lender hereby
irrevocably appoints and authorizes each Agent to act as its agent hereunder,
under the Security Documents and under the other Loan Documents with such powers
as are specifically delegated to such Agent by the terms of this Agreement, the
Security Documents and the other Loan Documents together with such other powers
as are reasonably incidental thereto. No Agent shall have any duties or
responsibilities except those expressly set forth in this Agreement, the
Security Documents and the other Loan Documents and shall not be a trustee for
any Lender, nor is any Agent acting in a fiduciary capacity of any kind under
this Agreement, the Security Documents or the other Loan Documents or in respect
thereof or in respect of any Lender. The Agents shall not be responsible to the
Lenders for any recitals, statements, representations or warranties contained in
this Agreement, the Security Documents, or the other Loan Documents, in any
certificate or other document referred to or provided for in, or received by any
of them under, this Agreement, the Security Documents or the other Loan
Documents, or for the value, validity, effectiveness, genuineness,
enforceability or sufficiency of this Agreement, the Security Documents or the
other Loan Documents or any other document referred to or provided for herein or
therein or for the collectibility of the Loans or for the validity,
effectiveness or value of any interest or security covered by the Security
Documents or for the value of any collateral or for the validity or
effectiveness of any assignment, mortgage, pledge, security agreement, financing
statement, document or instrument, or for the filing, recording, re-filing,
continuing or re-recording of any thereof or for any failure by the Company or
any Corporate Guarantor to perform any of its obligations hereunder or under the
other Loan Documents. Each Agent may take all actions by itself and/or it may
employ agents and attorneys-in-fact, and shall not be responsible, except as to
money or the securities received by it or its authorized agents, for the
negligence or misconduct of itself or its employees or of any such agents or
attorneys-in-fact, if such agents or attorneys-in-fact are selected by it with
reasonable care. Neither any Agent nor any of their respective directors,
officers, employees or agents shall be liable or responsible for any action
taken or omitted to be taken by it or them hereunder, under the Security
Documents or under the other Loan Documents or in connection herewith or
therewith, except for its or their own gross negligence or willful misconduct.

         SECTION 9.02. RELIANCE BY AGENTS. Each Agent shall be entitled to rely
upon, and shall not incur any liability for relying upon, any certification,
notice or other communication (including any thereof by telephone, telex,
telegram or cable) believed by it to be genuine and correct and to have been
signed or sent by or on behalf of the proper Person or Persons, and upon advice
and statements of legal counsel, independent accountants and other experts
selected by such Agent. As to any matters not expressly provided for by this
Agreement, the Security Documents or the other Loan Documents, each Agent shall
in all cases be fully protected in acting, or in refraining from acting,
hereunder, under the Security Documents or under the other Loan Documents in
accordance with instructions signed by the Required Lenders, or such other
number of Lenders as is specified in Section 10.04, and such instructions of the
Required Lenders or other number of Lenders as

                                       48
<PAGE>   54

aforesaid and any action taken or failure to act pursuant thereto shall be
binding on all of the Lenders.

         SECTION 9.03. EVENTS OF DEFAULT. The Administrative Agent shall not be
deemed to have knowledge of the occurrence of a Default or Event of Default
(other than the non-payment of principal of or interest on the Loans to the
extent the same is required to be paid to the Administrative Agent for the
account of the Lenders) unless the Administrative Agent has received notice from
a Lender or the Company specifying such Default or Event of Default and stating
that such notice is a "Notice of Default". In the event that the Administrative
Agent receives such a notice of the occurrence of a Default or Event of Default,
the Administrative Agent shall give prompt notice thereof to the Lenders. The
Administrative Agent shall (subject to Section 9.07) take such action with
respect to such Default or Event of Default as shall be directed by the Required
Lenders, except as otherwise provided in Section 10.04; provided that unless and
until the Administrative Agent shall have received such directions, the
Administrative Agent may (but is not obligated to) take such action, or refrain
from taking such action, with respect to such Default or Event of Default as it
shall deem advisable in the best interest of the Lenders.

         SECTION 9.04. RIGHTS AS A LENDER. With respect to its Credit Commitment
and the Loans made by it, each entity which is an Agent in its capacity as a
Lender hereunder shall have the same rights and powers hereunder as any other
Lender and may exercise the same as though it were not acting as an Agent, and
the term "Lender" or "Lenders" shall, unless the context otherwise indicates,
include each entity which is an Agent in its individual capacity. Each entity
which is an Agent and each of its Affiliates may (without having to account
therefor to any Lender) accept deposits from, lend money to and generally engage
in any kind of banking, trust or other business with the Company or its
Affiliates, as if it were not acting as an Agent, and, except to the extent
otherwise herein specifically set forth, each entity which is an Agent may
accept fees and other consideration from the Company or its Affiliates, for
services in connection with this Agreement, the Security Documents or any of the
other Loan Documents or otherwise without having to account for the same to the
Lenders.

         SECTION 9.05. INDEMNIFICATION. The Lenders shall indemnify each Agent
(to the extent not reimbursed by the Company under Section 10.03), ratably in
accordance with the aggregate outstanding principal amount of the Loans made by
the Lenders (or, if no Loans are at the time outstanding, ratably in accordance
with their respective Credit Commitments), for any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements of any kind and nature whatsoever which may be imposed
on, incurred by or asserted against such Agent in its capacity as an Agent in
any way relating to or arising out of this Agreement, the Security Documents or
any of the other Loan Documents or any other documents contemplated by or
referred to herein or therein or the transactions contemplated hereby and
thereby (including, without limitation, the costs and expenses which the Company
is obligated to pay under Section 10.03 or under the applicable provisions of
any other Loan Document) or the enforcement of any of the terms hereof or of the
Security Documents, or of any other Loan Document, provided that no

                                       49
<PAGE>   55

Lender shall be liable for any of the foregoing to the extent they arise from
the gross negligence or willful misconduct of such Agent.

         SECTION 9.06. NON-RELIANCE ON AGENTS AND OTHER LENDERS. Each Lender
agrees that it has, independently and without reliance on any Agent or any other
Lender, and based on such documents and information as it has deemed
appropriate, made its own credit analysis of the Company and decision to enter
into this Agreement and that it will, independently and without reliance upon
any 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 analysis and
decisions in taking or not taking action under this Agreement, the Security
Documents or the other Loan Documents. No Agent shall be required to keep itself
informed as to the performance or observance by the Company of this Agreement,
the Security Documents or the other Loan Documents or any other document
referred to or provided for herein or therein or to inspect the properties or
books of the Company. Except for notices, reports and other documents and
information expressly required to be furnished to the Lenders by an Agent
hereunder or under the Security Documents or the other Loan Documents, an Agent
shall not have any duty or responsibility to provide any Lender with any credit
or other information concerning the affairs, financial condition or business of
the Company, which may come into the possession of such Agent or any of its
Affiliates.

         SECTION 9.07. FAILURE TO ACT. Except for action expressly required of
an Agent hereunder or under the Security Documents, such Agent shall in all
cases be fully justified in failing or refusing to act hereunder or thereunder
unless it shall be indemnified to its satisfaction by the Lenders against any
and all liability and expense (except to the extent resulting from gross
negligence and willful misconduct) which may be incurred by it by reason of
taking or continuing to take any such action.

         SECTION 9.08. RESIGNATION OF AN AGENT. Subject to the appointment and
acceptance of a successor Agent as provided in this Section 9.08, an Agent may
resign at any time by notifying the Lenders and the Company. Upon any such
resignation, the Required Lenders shall have the right, in consultation with the
Company, to appoint a successor to such Agent. If no successor shall have been
so appointed by the Required Lenders and shall have accepted such appointment
within 30 days after the resigning Agent gives notice of its resignation, then
the resigning Agent may, on behalf of the Lenders, appoint a successor Agent
which shall be a bank with an office in New York, New York, or an Affiliate of
any such bank with an office in New York, New York. Upon the acceptance of its
appointment as Agent hereunder by a successor, such successor shall succeed to
and become vested with all the rights, powers, privileges and duties of the
resigning Agent, and the resigning Agent shall be discharged from its duties and
obligations hereunder. The fees payable by the Company to a successor Agent
shall be the same as those payable to its predecessor unless otherwise agreed
between the Company and such successor. After an Agent's resignation hereunder,
the provisions of this Article and Section 10.03 shall continue in effect for
the benefit of such resigning Agent in respect of any actions taken or omitted
to be taken by it while it was acting as an Agent.

                                       50
<PAGE>   56

         SECTION 9.09. SHARING OF COLLATERAL AND PAYMENTS. In the event that at
any time any Lender shall obtain payment in respect of a Note or interest
thereon, or receive any collateral in respect thereof, whether voluntarily or
involuntarily, through the exercise of a right of banker's lien, set-off or
counterclaim against the Company or otherwise (except pursuant to Section
10.05), in a greater proportion than the proportion received by any other Lender
in respect of the corresponding Note held by it or interest thereon, then the
Lender so receiving such greater proportionate payment shall purchase for cash
from the other Lender or Lenders such portion of each such other Lender's or
Lenders' Loans, or shall provide such other Lenders with the benefits of any
such collateral, or the proceeds thereof, as shall be necessary to cause the
Lender receiving the proportionate over-payment to share the excess payment or
benefits of such collateral or proceeds ratably with each of the Lenders each of
which shall have a lien on its ratable portion of the amount described hereafter
obtained from the Company; provided, however, that if all or any portion of such
excess payment or benefits is thereafter recovered from the Lender which
received the proportionate over-payment, such purchase shall be rescinded, and
the purchase price and benefits returned, to the extent of such recovery, but
without interest. The Company agrees, to the extent it may do so under
applicable law, that each Lender so purchasing a portion of another Lender's
Loans may exercise all rights of payment (including, without limitation, rights
of set-off) with respect to such portion as fully as if such Lender were the
direct holder of such portion.

                                    ARTICLE X
                                  MISCELLANEOUS

         SECTION 10.01. NOTICES. All notices, requests and demands to or upon
the respective parties hereto to be effective shall be in writing (including
telecopy), and unless otherwise expressly provided herein, shall be conclusively
deemed to have been received by a party hereto and to be effective on the day on
which delivered by hand to such party or one Business Day after being sent by
overnight mail to the address set forth below, or, in the case of telecopy
notice, when acknowledged as received, or if sent by registered or certified
mail, three (3) Business Days after the day on which mailed in the United
States, addressed to such party at such address:

                  (a)      if to the Administrative Agent, at

                           European American Bank
                           335 Madison Avenue
                           New York, New York  10017
                           Attention: Relationship Manager
                                      Lexent Inc.
                           Telecopy:  (212) 370-8524

                                       51
<PAGE>   57

                  (b)      if to the Company, at

                           Lexent Inc.
                           3 New York Plaza
                           New York, New York 10004
                           Attention: Chief Financial Officer
                           Telecopy: (212) 981-9435

                           with a copy to:

                           Lexent Inc.
                           3 New York Plaza
                           New York, New York 10004
                           Attention: General Counsel
                           Telecopy: (212) 981-9435

                  (c)      if to the Documentation Agent, at

                           The Bank of New York
                           1290 Avenue of the Americas
                           New York, New York 10104
                           Attention: Account Officer
                                      Lexent Inc.
                           Telecopy: (212) 408-4858

                  (d)      if to any Lender, to its address set forth in the
                           signature page of this Agreement and to the person so
                           designated

                                     - and -

                  (e)      as to each such party (other than the Lenders) at
                           such other address as such party shall have
                           designated to the others in a written notice
                           complying as to delivery with the provisions of this
                           Section 10.01 and as to each Lender at such other
                           address as such Lender shall designate to the
                           Administrative Agent in a written notice complying as
                           to delivery with the provisions of this Section
                           10.01.

         SECTION 10.02. EFFECTIVENESS; SURVIVAL. This Agreement shall become
effective on the date on which all parties hereto shall have signed a
counterpart copy hereof and shall have delivered the same to the Administrative
Agent. All representations and warranties made herein and in the other Loan
Documents and in the certificates delivered pursuant hereto or thereto shall
survive the making by the Lenders of the Loans as herein contemplated and the
execution and delivery to the Lenders of the Notes evidencing the Loans and
shall continue in full force and effect so long as

                                       52

<PAGE>   58

the Obligations hereunder are outstanding and unpaid and the Credit Commitments
are in effect. The obligations of the Company pursuant to Section 3.07, Section
3.08, Section 3.09, Section 3.10 and Section 10.03 shall survive termination of
this Agreement and payment of the Obligations.

         SECTION 10.03. EXPENSES. The Company agrees (a) to indemnify, defend
and hold harmless each Agent and each Lender and their respective officers,
directors, employees, and affiliates (each, an "indemnified person") from and
against any and all losses, claims, damages, liabilities or judgments to which
any such indemnified person may be subject and arising out of or in connection
with the Loan Documents, the financings contemplated hereby, the use of any
proceeds of such financings or any related transaction or any claim, litigation,
investigation or proceeding relating to any of the foregoing, whether or not any
of such indemnified persons is a party thereto, and to reimburse each of such
indemnified persons upon demand for any reasonable, legal or other expenses
incurred in connection with the investigation or defending of any of the
foregoing; provided that the foregoing indemnity will not, as to any indemnified
person, apply to losses, claims, damages, liabilities, judgments or related
expenses to the extent arising from the wilful misconduct or gross negligence of
such indemnified person, (b) to pay or reimburse the Administrative Agent for
all its reasonable out-of-pocket costs and expenses incurred in connection with
the preparation and execution of and any amendment, supplement or modification
to this Agreement, the Notes any other Loan Documents, and any other documents
prepared in connection herewith or therewith, and the consummation of the
transactions contemplated hereby and thereby, including without limitation, the
reasonable fees and disbursements of Farrell Fritz, P.C., counsel to the
Administrative Agent, (c) to pay or reimburse each Lender and each Agent for all
their costs and expenses incurred in connection with the enforcement and
preservation of any rights under this Agreement, the Notes, the other Loan
Documents, and any other documents prepared in connection herewith or therewith,
including, without limitation, the reasonable fees and disbursements of counsel
(including, without limitation, in-house counsel) to each Agent and to the
several Lenders, including all such out-of-pocket expenses incurred during any
work-out, restructuring or negotiations in respect of the Obligations and (d) to
pay or reimburse the Administrative Agent on demand for all costs, expenses and
charges incurred by the Administrative Agent in connection with conducting an
inspection or audit in accordance with Section 6.04, provided that such
reimbursement shall not exceed $10,000 per audit.

         SECTION 10.04. AMENDMENTS AND WAIVERS. With the written consent of the
Required Lenders, the Administrative Agent and the Company may, from time to
time, enter into written amendments, supplements or modifications hereto for the
purpose of adding any provisions to this Agreement or the Notes or any of the
other Loan Documents or changing in any manner the rights of the Lenders or of
the Company hereunder or thereunder, and with the written consent of the
Required Lenders the Administrative Agent on behalf of the Lenders may execute
and deliver to the Company a written instrument waiving, on such terms and
conditions as the Administrative Agent or the Required Lenders may specify in
such instrument, any of the requirements of this Agreement or the Notes or any
of the other Loan Documents or any Event of Default; provided, however, that no
such waiver and no such amendment, supplement or modification shall (a) extend
the maturity of any Note, or any installment thereof, (b) reduce the rate or
extend the time of payment of interest

                                       53
<PAGE>   59

on any Note or any fees payable to the Lenders hereunder, (c) reduce the
principal amount of any Note, (d) increase the Total Credit Commitments, (e)
amend, modify or waive any provision of this Section 10.04, (f) reduce the
percentage specified in the definition of Required Lenders or amend or modify
any other provision hereof specifying the number or percentage of Lenders
required to waive, amend or modify any rights hereunder or make any
determination granting consent hereunder, (g) consent to the assignment or
transfer by the Company or any Corporate Guarantor of any of its rights or
obligations under this Agreement, (h) except as expressly permitted pursuant to
this Agreement or any other Loan Document release any collateral security
granted to the Administrative Agent under the Security Documents or (i) release
any Corporate Guarantor from its Corporate Guaranty, or limit any Corporate
Guarantor's liability with respect to its Corporate Guaranty, in each case
specified in clauses (a) through (i) above without the written consent of all
the Lenders; and provided, further, that no such waiver and no such amendment,
supplement or modification shall (i) amend, modify, supplement or waive any
provision of Article IX with respect to any Agent without the written consent of
such Agent or (ii) increase the amount of any Lender's Credit Commitment without
the written consent of such Lender. Any such waiver and any such amendment,
supplement or modification shall apply equally to each of the Lenders and shall
be binding upon the Company, the Lenders, the Administrative Agent and all
future holders of the Notes.

         SECTION 10.05. SUCCESSORS AND ASSIGNS; PARTICIPATIONS. (a) This
Agreement shall be binding upon and inure to the benefit of the Company, the
Lenders, the Agents, all future holders of the Notes and their respective
successors and assigns, except that the Company may not assign or transfer any
of its rights or obligations under this Agreement without the prior written
consent of each Lender, and any such attempted assignment or transfer without
such consent shall be null and void.

         (b) Any Lender may, in the ordinary course of its commercial banking
business and in accordance with applicable law, at any time sell to one or more
banks or other financial institutions ("Participants") participating interests
in any Loan owing to such Lender, any Note held by such Lender, any Credit
Commitment of such Lender or any other interest of such Lender hereunder. In the
event of any such sale by a Lender of participating interests to a Participant,
such Lender's obligations under this Agreement to the other parties under this
Agreement shall remain unchanged, such Lender shall remain solely responsible
for the performance thereof, such Lender shall remain the holder of any such
Note for all purposes under this Agreement, and the Company 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.
The Company agrees that each Participant shall be entitled to the benefits of
Sections 3.07, 3.08 and 3.09 with respect to its participation in the Credit
Commitments and in the Loans outstanding from time to time; provided, however,
that no Participant shall be entitled to receive any greater amount pursuant to
such sections than the transferor Lender would have been entitled to receive in
respect of the amount of the participation transferred by such transferor Lender
to such Participant had no such transfer occurred. No Participant shall have the
right to consent to any amendment to, or waiver of, any provision of this
Agreement, except the transferor Lender may provide in its agreement with the
Participant that

                                       54
<PAGE>   60

such Lender will not, without the consent of the Participant, agree to any
amendment or waiver described in clause (a) through clause (i) of Section 10.04.

         (c) Subject to the last sentence of this paragraph (c) any Lender may,
in the ordinary course of its commercial banking business and in accordance with
applicable law, at any time sell to any Lender or any domestic banking affiliate
thereof, and to one or more additional banks or financial institutions provided
that such Purchasing Lender is a bank organized under the laws of the United
States of America or any state thereof and has combined capital and surplus of
at least $200,000,000 ("Purchasing Lenders") all or any part of its rights and
obligations under this Agreement and the other Loan Documents pursuant to an
Assignment and Acceptance Agreement, executed by such Purchasing Lender, such
transferor Lender and the Administrative Agent (and, in the case of an
Assignment and Acceptance Agreement relating to a Purchasing Lender that is not
then a Lender or a domestic banking affiliate thereof, also executed by the
Company), and delivered to the Administrative Agent for its acceptance. Upon
such execution, delivery and acceptance from and after the effective date
specified in such Assignment and Acceptance Agreement, (i) the Purchasing Lender
thereunder shall be a party hereto and, to the extent provided in such
Assignment and Acceptance Agreement, have the rights and obligations of a Lender
hereunder with a Credit Commitment as set forth therein and (ii) the transferor
Lender thereunder shall, to the extent provided in such Assignment and
Acceptance Agreement, be released from its obligations under this Agreement
(and, in the case of an Assignment and Acceptance Agreement covering all or the
remaining portion of a transferor Lender's rights and obligations under this
Agreement, such transferor Lender shall cease to be a party hereto except as to
Sections 3.07, 3.08, 3.09, 3.10 and 10.03 for the period prior to the effective
date). Such Assignment and Acceptance Agreement shall be deemed to amend this
Agreement to the extent, and only to the extent, necessary to reflect the
addition of such Purchasing Lender and the resulting adjustment of Commitment
Proportions arising from the purchase by such Purchasing Lender of all or a
portion of the rights and obligations of such transferor Lender under or in
respect of this Agreement and the other Loan Documents. On or prior to the
effective date specified in such Assignment and Acceptance Agreement, the
Company, at its own expense, shall execute and deliver to the Administrative
Agent, in exchange for the Notes surrendered pursuant to the Assignment and
Acceptance Agreement, new Notes to the order of such Purchasing Lender in an
amount equal to the Credit Commitment assumed by it pursuant to such Assignment
and Acceptance Agreement and, if the transferor Lender has retained any Credit
Commitment hereunder, a new Note to the order of the transferor Lender in an
amount equal to such Credit Commitment retained by it hereunder. Such new Notes
shall be in a principal amount equal to the principal amount of such surrendered
Notes, shall be dated the date of the Notes they replace and shall otherwise be
in the form of the Notes replaced thereby. The Notes surrendered by the
transferor Lender shall be returned by the Administrative Agent to the Company
marked "cancelled". Anything in this Section 10.05 to the contrary
notwithstanding, no transfer to a Purchasing Lender shall be made pursuant to
this paragraph (c) if such transfer by any one transferor Lender to any one
Purchasing Lender (other than a Purchasing Lender which is a Lender hereunder
prior to such transfer) (x) is in respect of less than $1,000,000 of the Credit
Commitment of such transferor Lender or (y) if less than all of the Credit
Commitment of such transferor Lender is transferred, after

                                       55
<PAGE>   61

giving effect to such transfer the amount held by any transferor Lender would be
less than $1,000,000.

         (d) The Administrative Agent shall maintain at its address referred to
in Section 10.01 a copy of each Assignment and Acceptance Agreement delivered to
it and a register (the "Register") for the recordation of the names and
addresses of the Lenders and the Credit Commitments of, and principal amount of
the Loans owing to, each Lender from time to time. The entries in the Register
shall be conclusive, in the absence of clear and obvious error and the Company,
the Administrative Agent and the Lenders may treat each Person whose name is
recorded in the Register as the owner of the Loans recorded therein for all
purposes of this Agreement. The Register shall be available for inspection by
the Company or any Lender at any reasonable time and from time to time upon
reasonable prior notice.

         (e) Upon its receipt of an Assignment and Acceptance Agreement executed
by a transferor Lender and a Purchasing Lender (and, in the case of a Purchasing
Lender that is not then a Lender or an Affiliate thereof, by the Company)
together with payment by the Purchasing Lender to the Administrative Agent of a
registration and processing fee of $3,500 if the Purchasing Lender is not a
Lender prior to the execution of an Assignment and Acceptance Agreement and
$2,500 if the Purchasing Lender is a Lender prior to the execution of an
Assignment and Acceptance Agreement, the Administrative Agent shall (i) accept
such Assignment and Acceptance Agreement, (ii) record the information contained
therein in the Register, and (iii) give prompt notice of such acceptance and
recordation to the Lenders and the Company.

         (f) The Company authorizes each Lender to disclose to any Participant
or Purchasing Lender (each, a "Transferee") and any prospective Transferee any
and all financial information in such Lender's possession concerning the Company
and its Affiliates which has been delivered to such Lender by or on behalf of
the Company pursuant to this Agreement or which has been delivered to such
Lender by the Company in connection with such Lender's credit evaluation of the
Company and the Corporate Guarantors prior to entering into this Agreement.

         (g) If, pursuant to this Section 10.05, any interest in this Agreement,
a participation agreement, or any Note is transferred to any Transferee which is
organized under the laws of any jurisdiction other than the United States or any
State thereof, the transferor Lender shall cause such Transferee, concurrently
with the effectiveness of such transfer, (i) to represent to the transferor
Lender (for the benefit of the transferor Lender, the Administrative Agent and
the Company) that under applicable law and treaties no taxes will be required to
be withheld by the Administrative Agent, the Company, or the transferor Lender
with respect to any payments to be made to such Transferee in respect of the
Loans, (ii) to furnish to the Administrative Agent, the transferor Lender and
the Company either U.S. Internal Revenue Service Form W-8BEN or U.S. Internal
Revenue Service Form W-8ECI (wherein such Transferee claims entitlement to
complete exemption from U.S. federal withholding tax on all interest payments
hereunder) and (iii) to agree (for the benefit of the Administrative Agent, the
transferor Lender and the Company) to provide the Administrative Agent, the
transferor Lender and the Company a new Form W-8BEN or W-8ECI upon the
expiration

                                       56
<PAGE>   62

or obsolescence of any previously delivered form and comparable statements in
accordance with applicable U.S. laws and regulations and amendments duly
executed and completed by such Transferee, and to comply from time to time with
all applicable U.S. laws and regulations with regard to such withholding tax
exemption.

         (h) Any Lender may at any time pledge or assign or grant a security
interest in all or any part of its rights under this Agreement and its Notes to
a Federal Reserve Bank, provided that no such assignment shall release the
transferor Lender from its Credit Commitment or its obligations hereunder or
substitute any such pledgee or assignee for such Lender as a party to this
Agreement.

         SECTION 10.06. NO WAIVER; CUMULATIVE REMEDIES. Neither any failure nor
any delay on the part of any Lender or the Administrative Agent in exercising
any right, power or privilege hereunder or under any Note or any other Loan
Document shall operate as a waiver thereof, nor shall a single or partial
exercise thereof preclude any other or further exercise of any other right,
power or privilege. The rights, remedies, powers and privileges herein provided
or provided in the other Loan Documents are cumulative and not exclusive of any
rights, remedies powers and privileges provided by law.

         SECTION 10.07. APPLICABLE LAW. THIS AGREEMENT AND THE NOTES SHALL BE
CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK,
WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OR CHOICE OF LAW.

         SECTION 10.08. SUBMISSION TO JURISDICTION; JURY WAIVER; WAIVER OF
CONSEQUENTIAL DAMAGES. THE COMPANY HEREBY IRREVOCABLY SUBMITS TO THE
JURISDICTION OF ANY FEDERAL OR STATE COURT IN THE STATE OF NEW YORK, COUNTY OF
NEW YORK, COUNTY OF NASSAU OR COUNTY OF SUFFOLK IN ANY ACTION, SUIT OR
PROCEEDING BROUGHT AGAINST IT AND RELATED TO OR IN CONNECTION WITH THIS
AGREEMENT OR ANY OTHER LOAN DOCUMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED
HEREBY OR THEREBY, AND TO THE EXTENT PERMITTED BY APPLICABLE LAW, THE COMPANY
HEREBY WAIVES AND AGREES NOT TO ASSERT BY WAY OF MOTION, AS A DEFENSE OR
OTHERWISE, IN ANY SUCH SUIT, ACTION OR PROCEEDING ANY CLAIM THAT IT IS NOT
PERSONALLY SUBJECT TO THE JURISDICTION OF SUCH FEDERAL OR STATE COURTS, THAT ANY
SUCH SUIT, ACTION OR PROCEEDING IS BROUGHT IN AN INCONVENIENT FORUM, THAT THE
VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING IS IMPROPER, OR THAT THIS AGREEMENT
OR ANY OTHER LOAN DOCUMENT OR ANY OTHER DOCUMENT OR INSTRUMENT REFERRED TO
HEREIN OR THEREIN OR THE SUBJECT MATTER HEREOF THEREOF MAY NOT BE LITIGATED IN
OR BY SUCH FEDERAL OR STATE COURTS. TO THE EXTENT PERMITTED BY APPLICABLE LAW,
THE COMPANY AGREES NOT TO (I) SEEK AND HEREBY WAIVES THE RIGHT TO ANY REVIEW OF
THE JUDGMENT OF ANY SUCH FEDERAL OR STATE COURT BY ANY FEDERAL OR

                                       57
<PAGE>   63

STATE COURT OF ANY OTHER NATION OR JURISDICTION WHICH MAY BE CALLED UPON TO
GRANT AN ENFORCEMENT OF SUCH JUDGMENT OR (II) ASSERT ANY COUNTERCLAIM IN ANY
SUCH SUIT, ACTION OR PROCEEDING. THE COMPANY AGREES THAT SERVICE OF PROCESS MAY
BE MADE UPON IT BY CERTIFIED OR REGISTERED MAIL TO THE ADDRESS FOR NOTICES SET
FORTH IN THIS AGREEMENT OR ANY METHOD AUTHORIZED BY THE LAWS OF NEW YORK. EACH
PARTY HERETO WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY
LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH
THIS AGREEMENT, THE NOTES OR ANY OTHER LOAN DOCUMENT. EXCEPT AS PROHIBITED BY
LAW, EACH PARTY HEREBY WAIVES ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN ANY
LITIGATION REFERRED TO IN THIS SECTION 10.08 ANY SPECIAL, EXEMPLARY, PUNITIVE OR
CONSEQUENTIAL DAMAGES OR ANY DAMAGES OTHER THAN, OR IN ADDITION TO, ACTUAL
DAMAGES. EACH PARTY HERETO (I) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR
ATTORNEY OF ANY AGENT OR ANY LENDER HAS REPRESENTED, EXPRESSLY OR OTHERWISE,
THAT SUCH AGENT OR SUCH LENDER WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO
ENFORCE THE FOREGOING WAIVERS AND (II) ACKNOWLEDGES THAT IT HAS BEEN INDUCED TO
ENTER INTO THIS AGREEMENT, THE NOTES AND THE OTHER LOAN DOCUMENTS, AS
APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS
HEREIN.

         SECTION 10.09. SEVERABILITY. In case any one or more of the provisions
contained in this Agreement, any Note or any other Loan Document should be
invalid, illegal or unenforceable in any respect, the validity, legality and
enforceability of the remaining provisions contained herein and therein shall
not in any way be affected or impaired thereby.

         SECTION 10.10 RIGHT OF SETOFF. If an Event of Default shall have
occurred and be continuing, the Administrative Agent, each Lender and each
Affiliate of each Lender are each hereby authorized at any time and from time to
time, to the fullest extent permitted by law, to set off and apply any and all
deposits (general or special, time or demand, provisional or final) at any time
held and other indebtedness at any time owing by the Administrative Agent, any
Lender or any Affiliate of any Lender to or for the credit or the account of the
Company against any and all of the Obligations of the Company now and hereafter
existing under this Agreement and the Notes held by such Lender, irrespective of
whether or not such Lender shall have made any demand under this Agreement or
any Note and although such obligations may be unmatured. The rights of the
Administrative Agent, each Lender and each Affiliate of each Lender under this
Section 10.10 are in addition to other rights and remedies (including, without
limitation, other rights of setoff) which they may have.

         SECTION 10.11. HEADINGS. Section headings used herein are for
convenience of reference only and are not to affect the construction of or be
taken into consideration in interpreting this Agreement.

                                       58
<PAGE>   64

         SECTION 10.12. CONSTRUCTION. This Agreement is the result of
negotiations between, and has been reviewed by, each of the Company, the Agents,
the Lenders and their respective counsel. Accordingly, this Agreement shall be
deemed to be the product of each party hereto, and no ambiguity shall be
construed in favor of or against either the Company, any Agent, or any Lender.

         SECTION 10.13. COUNTERPARTS. This Agreement may be executed in two or
more counterparts, each of which shall constitute an original, but all of which,
taken together, shall constitute one and the same agreement.

                      [THE NEXT PAGE IS THE SIGNATURE PAGE]

                                       59
<PAGE>   65

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

                                             LEXENT INC.

                                             By:________________________________
                                             Name:
                                             Title:

<PAGE>   66

Credit Commitment:                  EUROPEAN AMERICAN BANK,
$20,000,000                         AS ADMINISTRATIVE AGENT AND AS A LENDER

                                    By: _____________________________
                                    Name: Andrew Cunningham
                                    Title: Vice President

                                    Lending Office:

                                    European American Bank
                                    335 Madison Avenue
                                    New York, New York 10017

                                    Address for Notices:

                                    European American Bank
                                    335 Madison Avenue
                                    New York, New York 10017
                                    Attention: Mr. Andrew Cunningham
                                    Telecopy:  (212) 370-8524

                                       61
<PAGE>   67

Credit Commitment:                  THE BANK OF NEW YORK,
$15,000,000                         AS DOCUMENTATION AGENT AND AS A LENDER

                                    By: _____________________________
                                    Name: A. Alan Ackbarali
                                    Title: Vice President

                                    Lending Office:

                                    The Bank of New York
                                    1290 Avenue of the Americas
                                    3rd Floor
                                    New York, New York 10104

                                    Address for Notices:

                                    The Bank of New York
                                    1290 Avenue of the Americas
                                    3rd Floor
                                    New York, New York 10104
                                    Attention: Mr. A. Alan Ackbarali
                                    Telecopy: 212-408-4858

                                    with a copy to:

                                    The Bank of New York
                                    One Wall Street - 15th Floor
                                    Legal Department
                                    New York, New York 10286
                                    Attention: Richard W. Katz, Esq.
                                    Telecopy: 212-635-1698

                                       62
<PAGE>   68

Credit Commitment:                  STATE BANK OF LONG ISLAND,
$5,000,000                          AS A LENDER

                                    By: _____________________________
                                    Name:
                                    Title:

                                    Lending Office:

                                    State Bank of Long Island
                                    Two Jericho Plaza
                                    Jericho, NY 11753

                                    Address for Notices:

                                    State Bank of Long Island
                                    Two Jericho Plaza
                                    Jericho, NY 11753
                                    Attention:  Mr. Michael Sabala
                                    Telecopy:  (516) 465-0562

                                    with a copy to:

                                    State Bank of Long Island
                                    699 Hillside Avenue
                                    New Hyde Park, NY  11040
                                    Attention:  Mr. Michael Sabala
                                    Telecopy:  (516) 437-1032

                                       63
<PAGE>   69

Credit Commitment:                  ISRAEL DISCOUNT BANK OF NEW YORK,
$5,000,000                          AS A LENDER

                                    By: _____________________________
                                    Name: Ronald Bongiovanni
                                    Title: First Vice President

                                    By: _____________________________
                                    Name:  R. David Korngruen
                                    Title:  Vice President

                                    Lending Office:

                                    Israel Discount Bank of New York
                                    511 Fifth Avenue
                                    New York, New York 10017

                                    Address for Notices:

                                    Israel Discount Bank of New York
                                    511 Fifth Avenue
                                    New York, New York 10017
                                    Attention: Mr. Ronald Bongiovanni
                                    Telecopy: 212-551-8720

                                    with a copy to:

                                    Israel Discount Bank of New York
                                    511 Fifth Avenue
                                    New York, New York 10017
                                    Attention: Paula Feinberg, Esq.
                                    Telecopy: 212-551-8916

                                       64
<PAGE>   70

Credit Commitment:                  BANK LEUMI USA,
$5,000,000                          AS A LENDER

                                    By: _____________________________
                                    Name:
                                    Title:

                                    Lending Office:

                                    Bank Leumi USA
                                    562 Fifth Avenue, 10th Floor
                                    New York, New York 10036

                                    Address for Notices:

                                    Bank Leumi USA
                                    562 Fifth Avenue, 10th Floor
                                    New York, New York 10036
                                    Attention: Mr. Paul Tine
                                    Telecopy:   212-626-1311

                                       65

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