Document:

<PAGE>   1
                           NEW ENGLAND EXECUTIVE PARK
                                BUILDING FIFTEEN
                            BURLINGTON, MASSACHUSETTS

                             OFFICE LEASE AGREEMENT

                                     BETWEEN

  EOP-NEW ENGLAND EXECUTIVE PARK, L.L.C., A DELAWARE LIMITED LIABILITY COMPANY
                                  ("LANDLORD")

                                       AND

                    ZAMBA CORPORATION, A DELAWARE CORPORATION
                                   ("TENANT")

<PAGE>   2

                                TABLE OF CONTENTS
<TABLE>
<S>                                                                                         <C>

I. BASIC LEASE INFORMATION...................................................................1

II. LEASE GRANT..............................................................................2

III. ADJUSTMENT OF COMMENCEMENT DATE; POSSESSION.............................................3

IV. RENT.....................................................................................3

V. COMPLIANCE WITH LAWS; USE.................................................................7

VI. SECURITY DEPOSIT.........................................................................7

VII. SERVICES TO BE FURNISHED BY LANDLORD....................................................7

VIII. LEASEHOLD IMPROVEMENTS.................................................................8

IX. REPAIRS AND ALTERATIONS..................................................................8

X. USE OF ELECTRICAL SERVICES BY TENANT......................................................9

XI. ENTRY BY LANDLORD.......................................................................10

XII. ASSIGNMENT AND SUBLETTING..............................................................10

XIII. LIENS.................................................................................11

XIV. INDEMNITY AND WAIVER OF CLAIMS.........................................................11

XV. INSURANCE...............................................................................12

XVI. SUBROGATION............................................................................12

XVII. CASUALTY DAMAGE.......................................................................13

XVIII. CONDEMNATION.........................................................................13

XIX. EVENTS OF DEFAULT......................................................................13

XX. REMEDIES................................................................................14

XXI. LIMITATION OF LIABILITY................................................................15

XXII. NO WAIVER.............................................................................15

XXIII.  QUIET ENJOYMENT.....................................................................15

XXIV. RELOCATION............................................................................15

XXV. HOLDING OVER...........................................................................15

XXVI. SUBORDINATION TO MORTGAGES; ESTOPPEL CERTIFICATE......................................16

XXVII. ATTORNEYS' FEES......................................................................16

XXVIII. NOTICE..............................................................................16

XXIX. EXCEPTED RIGHTS.......................................................................17

XXX. SURRENDER OF PREMISES..................................................................17

XXXI. MISCELLANEOUS.........................................................................17

XXXII. ENTIRE AGREEMENT.....................................................................19

</TABLE>

                                       i

<PAGE>   3

                             OFFICE LEASE AGREEMENT

         This Office Lease Agreement (the "Lease") is made and entered into as
of the 31st day of May, 2000, by and between EOP-NEW ENGLAND EXECUTIVE PARK,
L.L.C., A DELAWARE LIMITED LIABILITY COMPANY ("Landlord") and ZAMBA CORPORATION,
A DELAWARE CORPORATION ("Tenant").

I.   BASIC LEASE INFORMATION.

     A.  "Building" shall mean the building located at Fifteen New England
         Executive Park, Burlington, Massachusetts 01803, and commonly known as
         Fifteen New England Executive Park.

     B.  "Rentable Square Footage of the Building" is deemed to be 43,267
         square feet.

     C.  "Premises" shall mean the area shown on EXHIBIT A to this Lease. The
         Premises are located on the 1st floor and known as suite number 120.
         The "Rentable Square Footage of the Premises" is deemed to be 11,049
         square feet. If the Premises include one or more floors in their
         entirety, all corridors and restroom facilities located on such full
         floor(s) shall be considered part of the Premises. Landlord and Tenant
         stipulate and agree that the Rentable Square Footage of the Building
         and the Rentable Square Footage of the Premises are correct and shall
         not be remeasured.

     D.  "Base Rent":

<TABLE>
<CAPTION>
               PERIOD         ANNUAL RATE           ANNUAL             MONTHLY
               ------         -----------           ------             -------
              (MONTHS)      PER SQUARE FOOT        BASE RENT          BASE RENT
              --------      ---------------        ---------          ---------

<S>                         <C>                   <C>                <C>
              01 - 24           $30.00            $331,470.00        $27,622.50

              25 - 36           $31.00            $342,519.00        $28,543.25

              37 - 60           $32.00            $353,568.00        $29,464.00

</TABLE>

     E.  "Tenant's Pro Rata Share":  25.5368%.

     F.  "Base Year" for Taxes: Fiscal Year (defined below) 2001 (e.g., July 1,
         2000 to June 30, 2001). - "Base Year for Expenses: calendar year 2000.

         For purposes hereof, "Fiscal Year shall mean the Base Year for Taxes
         and each period of July 1 to June 30 thereafter.

     G.  "Term": A period of 60 months. The Term shall commence on July 1, 2000
         (the "Commencement Date") and, unless terminated early in accordance
         with this Lease, end on June 30, 2005 (the "Termination Date").
         However, if Landlord is required to Substantially Complete (defined in
         Section III.A) any Landlord Work (defined in Section I.O.) prior to the
         Commencement Date under the terms of a Work Letter (defined in Section
         I.O): (1) the date set forth in the prior sentence as the "Commencement
         Date" shall instead be defined as the "Target Commencement Date" by
         which date Landlord will use reasonable efforts to Substantially
         Complete the Landlord Work; and (2) the actual "Commencement Date"
         shall be the date on which the Landlord Work is Substantially Complete,
         as determined by Section III.A. In such circumstances, the Termination
         Date will instead be the last day of the Term as determined based upon
         the actual Commencement Date. Landlord's failure to Substantially
         Complete the Landlord Work by the Target Commencement Date shall not be
         a default by Landlord or otherwise render Landlord liable for damages.
         Promptly after the determination of the Commencement Date, Landlord and
         Tenant shall enter into a commencement letter agreement in the form
         attached as EXHIBIT C. In addition, if Tenant is entitled to register
         or record a notice or memorandum of this Lease pursuant to the terms of
         Section XXXI, Landlord and Tenant shall also execute and Tenant may
         register or record, as appropriate, at Tenant's cost and expense, a
         Commencement Date Agreement in the form attached as EXHIBIT E. Landlord
         shall use reasonable efforts to notify Tenant of any circumstances of
         which Landlord is aware that have caused or may cause a delay by
         Landlord to Substantially Complete the Landlord Work.

                                       1

<PAGE>   4

     H.  Tenant allowance(s): an amount not to exceed $99,441.00 as further
         described in the attached EXHIBIT D.

     I.  "Security Deposit":  $48,000.00.

     J.  "Guarantor(s)":  NONE.

     K.  "Broker(s)":  Boston Real Estate Partners.

     L.  "Permitted Use":  general office use.

     M.  "Notice Addresses":

         Tenant:

         On and after the Commencement Date, notices shall be sent to Tenant at
         the Premises. Prior to the Commencement Date, notices shall be sent to
         Tenant at the following address:

         New England Executive Park - Building 8
         Burlington, Massachusetts  01803
         Phone #:
         Fax #:

          Landlord:                                  With a copy to:

          EOP-New England Executive Park, L.L.C.     Equity Office Properties
          c/o Equity Office Properties               Two North Riverside Plaza
          Three New England Executive Park           Suite 2200
          Burlington, Massachusetts  01803           Chicago, Illinois 60606
          Attention:  Building Manager               Attention:  Northeast
                                                     Regional Counsel

         Rent (defined in Section IV.A) is payable to the order of EQUITY
         OFFICE PROPERTIES at the following address: EOP Operating Limited
         Partnership as Agent for EOP-New England Executive Park, L.L.C., P.O.
         Box 30229, Hartford, Connecticut 06150-0229.

     N.  "Business Day(s)" are Monday through Friday of each week, exclusive of
         New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving
         Day and Christmas Day ("Holidays"). Landlord may designate additional
         Holidays, provided that the additional Holidays are commonly recognized
         by other office buildings in the area where the Building is located.

     O.  "Landlord Work" means the work, if any, that Landlord is obligated to
         perform in the Premises pursuant to a separate work letter agreement
         (the "Work Letter"), if any, attached as EXHIBIT D. If a Work Letter is
         not attached to this Lease or if an attached Work Letter does not
         require Landlord to perform any work, the occurrence of the
         Commencement Date shall not be conditioned upon the performance of work
         by Landlord and, accordingly, Section III.A. shall not be applicable to
         the determination of the Commencement Date.

     P.  "Law(s)" means all applicable statutes, codes, ordinances, orders,
         rules and regulations of any municipal or governmental entity.

     Q.  "Normal Business Hours" for the Building are 8:00 A.M. to 6:00 P.M. on
         Business Days and 8:00 A.M. to 1:00 P.M. on Saturdays.

     R.  "Property" means the Building and the parcel(s) of land on which it is
         located and, at Landlord's discretion, the Building garage and other
         improvements serving the Building, if any, and the parcel(s) of land on
         which they are located.

II.  LEASE GRANT.

                                       2

<PAGE>   5

         Landlord leases the Premises to Tenant and Tenant leases the Premises
from Landlord, together with the right in common with others to use any portions
of the Property that are designated by Landlord for the common use of tenants
and others, such as sidewalks, unreserved parking areas, common corridors,
elevator foyers, restrooms, vending areas and lobby areas (the "Common Areas").

III.     ADJUSTMENT OF COMMENCEMENT DATE; POSSESSION.

     A.  The Landlord Work shall be deemed to be "Substantially Complete" on the
         date that all Landlord Work has been performed, other than any details
         of construction, mechanical adjustment or any other similar matter, the
         noncompletion of which does not materially interfere with Tenant's use
         of the Premises. However, if Landlord is delayed in the performance of
         the Landlord Work as a result of any Tenant Delay(s) (defined below),
         the Landlord Work shall be deemed to be Substantially Complete on the
         date that Landlord could reasonably have been expected to Substantially
         Complete the Landlord Work absent any Tenant Delay. "Tenant Delay"
         means any act or omission of Tenant or its agents, employees, vendors
         or contractors that actually delays the Substantial Completion of the
         Landlord Work, including, without limitation: (1) Tenant's failure to
         furnish information or approvals within any time period specified in
         this Lease, including the failure to prepare or approve preliminary or
         final plans by any applicable due date; (2) Tenant's selection of
         equipment or materials that have long lead times after first being
         informed by Landlord that the selection may result in a delay; (3)
         changes requested or made by Tenant to previously approved plans and
         specifications; (4) performance of work in the Premises by Tenant or
         Tenant's contractor(s) during the performance of the Landlord Work; or
         (5) if the performance of any portion of the Landlord Work depends on
         the prior or simultaneous performance of work by Tenant, a delay by
         Tenant or Tenant's contractor(s) in the completion of such work.

     B.  Subject to Landlord's obligation, if any, to perform Landlord Work and
         Landlord's obligations under Section IX.B., the Premises are accepted
         by Tenant in "as is" condition and configuration. By taking possession
         of the Premises, Tenant agrees that the Premises are in good order and
         satisfactory condition, and that there are no representations or
         warranties by Landlord regarding the condition of the Premises or the
         Building and that Landlord shall have no obligation to remove any
         furniture or other property that is present in the Premises as of the
         Commencement Date, the parties acknowledging and agreeing that Landlord
         shall have no interest in or rights to such furniture or property.
         Notwithstanding the foregoing, Landlord shall be responsible for latent
         defects in the Landlord Work of which Tenant notifies Landlord to the
         extent that the correction of such defects is covered under valid and
         enforceable warranties given Landlord by contractors or subcontractors
         performing the Landlord Work. Landlord, at its option, may pursue such
         claims directly or assign any such warranties to Tenant for
         enforcement. If Landlord is delayed delivering possession of the
         Premises or any other space due to the holdover or unlawful possession
         of such space by any party, Landlord shall use reasonable efforts to
         obtain possession of the space. If Landlord is not required to
         Substantially Complete Landlord Work before the Commencement Date, the
         Commencement Date shall be postponed until the date Landlord delivers
         possession of the Premises to Tenant free from occupancy by any party,
         and the Termination Date, at the option of Landlord, may be postponed
         by an equal number of days. If Landlord is required to Substantially
         Complete Landlord Work before the Commencement Date, the Commencement
         Date and Termination Date shall be determined by Section I.G.

     C.  If Tenant takes possession of the Premises before the Commencement
         Date, such possession shall be subject to the terms and conditions of
         this Lease and Tenant shall pay Rent (defined in Section IV.A.) to
         Landlord for each day of possession before the Commencement Date.
         However, except for the cost of services requested by Tenant (e.g.
         freight elevator usage), Tenant shall not be required to pay Rent for
         any days of possession before the Commencement Date during which
         Tenant, with the approval of Landlord, is in possession of the Premises
         for the sole purpose of performing improvements or installing
         furniture, equipment or other personal property.

IV.      RENT.

     A.  Payments. As consideration for this Lease, Tenant shall pay Landlord,
         without any setoff or deduction, the total amount of Base Rent and
         Additional Rent due for the Term. "Additional Rent" means all sums
         (exclusive of Base Rent) that Tenant is

                                       3
<PAGE>   6

         required to pay Landlord. Additional Rent and Base Rent are sometimes
         collectively referred to as "Rent". Tenant shall pay and be liable for
         all rental, sales and use taxes (but excluding income taxes), if any,
         imposed upon or measured by Rent under applicable Law. Base Rent and
         recurring monthly charges of Additional Rent shall be due and payable
         in advance on the first day of each calendar month without notice or
         demand, provided that the installment of Base Rent for the first full
         calendar month of the Term shall be payable upon the Commencement
         Date. All other items of Rent shall be due and payable by Tenant on or
         before 30 days after billing by Landlord. All payments of Rent shall
         be by good and sufficient check or by other means (such as automatic
         debit or electronic transfer) acceptable to Landlord. If Tenant fails
         to pay any item or installment of Rent when due, Tenant shall pay
         Landlord an administration fee equal to 5% of the past due Rent,
         provided that Tenant shall be entitled to a grace period of 5 days for
         the first 2 late payments of Rent in a given calendar year. If the
         Term commences on a day other than the first day of a calendar month
         or terminates on a day other than the last day of a calendar month,
         the monthly Base Rent and Tenant's Pro Rata Share of any Tax Excess
         (defined in Section IV.B.) or Expense Excess (defined in Section
         IV.B.) for the month shall be prorated based on the number of days in
         such calendar month. Landlord's acceptance of less than the correct
         amount of Rent shall be considered a payment on account of the
         earliest Rent due. No endorsement or statement on a check or letter
         accompanying a check or payment shall be considered an accord and
         satisfaction, and either party may accept the check or payment without
         prejudice to that party's right to recover the balance or pursue other
         available remedies. Tenant's covenant to pay Rent is independent of
         every other covenant in this Lease.

     B.  Expense Excess and Tax Excess. Tenant shall pay Tenant's Pro Rata Share
         of the amount, if any, by which Expenses (defined in Section IV.C.) for
         each calendar year during the Term exceed Expenses for the Base Year
         (the "Expense Excess") and also the amount, if any, by which Taxes
         (defined in Section IV.D.) for each Fiscal Year during the Term exceed
         Taxes for the Base Year (the "Tax Excess"). If Expenses and/or Taxes in
         any calendar year or Fiscal Year decrease below the amount of Expenses
         and/or Taxes for the Base Year, Tenant's Pro Rata Share of Expenses
         and/or Taxes, as the case may be, for that calendar year or Fiscal Year
         shall be $0. Landlord shall provide Tenant with a good faith estimate
         of the Expense Excess and of the Tax Excess for each calendar year or
         Fiscal Year during the Term. On or before the first day of each month,
         Tenant shall pay to Landlord a monthly installment equal to one-twelfth
         of Tenant's Pro Rata Share of Landlord's estimate of the Expense Excess
         and one-twelfth of Tenant's Pro Rata Share of Landlord's estimate of
         the Tax Excess. If Landlord determines that its good faith estimate of
         the Expense Excess or of the Tax Excess was incorrect by a material
         amount, Landlord may provide Tenant with a revised estimate. After its
         receipt of the revised estimate, Tenant's monthly payments shall be
         based upon the revised estimate. If Landlord does not provide Tenant
         with an estimate of the Expense Excess by January 1 of a calendar year,
         or the Tax Excess by the start of each new Fiscal Year, Tenant shall
         continue to pay monthly installments based on the previous calendar
         year's or Fiscal Year's estimate(s), as the case may be, until Landlord
         provides Tenant with the new estimate. Upon delivery of the new
         estimate, an adjustment shall be made for any month for which Tenant
         paid monthly installments based on the previous calendar or Fiscal
         Year's estimate(s). Tenant shall pay Landlord the amount of any
         underpayment within 30 days after receipt of the new estimate. Any
         overpayment shall be refunded to Tenant within 30 days or credited
         against the next due future installment(s) of Additional Rent.

         As soon as is practical following the end of each calendar year or
         Fiscal Year, as the case may be, Landlord shall furnish Tenant with a
         statement of the actual Expenses and Expense Excess and the actual
         Taxes and Tax Excess for the prior calendar year or Fiscal Year, as the
         case may be. If the estimated Expense Excess and/or estimated Tax
         Excess for the prior calendar year or Fiscal Year, as the case may be,
         is more than the actual Expense Excess and/or actual Tax Excess for the
         prior calendar year or Fiscal Year, as the case may be, Landlord shall
         apply any overpayment by Tenant against Additional Rent due or next
         becoming due, provided if the Term expires before the determination of
         the overpayment, Landlord shall refund any overpayment to Tenant after
         first deducting the amount of Rent due. If the estimated Expense Excess
         and/or estimated Tax Excess for the prior calendar year or Fiscal Year,
         as the case may be, is less than the actual Expense Excess and/or
         actual Tax Excess for such prior calendar year or Fiscal Year, as the
         case may be, Tenant shall pay Landlord, within 30

                                       4
<PAGE>   7

         days after its receipt of the statement of Expenses and/or Taxes, any
         underpayment for the prior calendar year.

     C.  Expenses Defined. "Expenses" means all costs and expenses incurred in
         each calendar year in connection with operating, maintaining,
         repairing, and managing the Building and the Property, including, but
         not limited to:

         1.   Labor costs, including, wages, salaries, social security and
              employment taxes, medical and other types of insurance, uniforms,
              training, and retirement and pension plans.

         2.   Management fees, the cost of equipping and maintaining a
              management office, accounting and bookkeeping services, legal fees
              not attributable to leasing or collection activity, and other
              administrative costs. Landlord, by itself or through an affiliate,
              shall have the right to directly perform or provide any services
              under this Lease (including management services), provided that
              the cost of any such services shall not exceed the cost that would
              have been incurred had Landlord entered into an arms-length
              contract for such services with an unaffiliated entity of
              comparable skill and experience.

         3.   The cost of services, including amounts paid to service providers
              and the rental and purchase cost of parts, supplies, tools and
              equipment.

         4.   Premiums and deductibles paid by Landlord for insurance, including
              workers compensation, fire and extended coverage, earthquake,
              general liability, rental loss, elevator, boiler and other
              insurance customarily carried from time to time by owners of
              comparable office buildings.

         5.   Electrical Costs (defined below) and charges for water, gas,
              steam and sewer, but excluding those charges for which Landlord
              is reimbursed by tenants. "Electrical Costs" means: (a) charges
              paid by Landlord for electricity; (b) costs incurred in
              connection with an energy management program for the Property;
              and (c) if and to the extent permitted by Law, a fee for the
              services provided by Landlord in connection with the selection of
              utility companies and the negotiation and administration of
              contracts for electricity, provided that such fee shall not
              exceed 50% of any savings obtained by Landlord. Electrical Costs
              shall be adjusted as follows: (i) amounts received by Landlord as
              reimbursement for above standard electrical consumption shall be
              deducted from Electrical Costs; (ii) the cost of electricity
              incurred to provide overtime HVAC to specific tenants (as
              reasonably estimated by Landlord) shall be deducted from
              Electrical Costs; and (iii) if Tenant is billed directly for the
              cost of building standard electricity to the Premises as a
              separate charge in addition to Base Rent, the cost of electricity
              to individual tenant spaces in the Building shall be deducted
              from Electrical Costs.

         6.   The amortized cost of capital improvements (as distinguished from
              replacement parts or components installed in the ordinary course
              of business) made to the Property which are: (a) performed
              primarily to reduce operating expense costs or otherwise improve
              the operating efficiency of the Property; or (b) required to
              comply with any Laws that are enacted, or first interpreted to
              apply to the Property, after the date of this Lease. The cost of
              capital improvements shall be amortized by Landlord over the
              lesser of the Payback Period (defined below) or 5 years. The
              amortized cost of capital improvements may, at Landlord's option,
              include actual or imputed interest at the rate that Landlord
              would reasonably be required to pay to finance the cost of the
              capital improvement. "Payback Period" means the reasonably
              estimated period of time that it takes for the cost savings
              resulting from a capital improvement to equal the total cost of
              the capital improvement.

         If Landlord incurs Expenses for the Property together with one or more
         other buildings or properties, whether pursuant to a reciprocal
         easement agreement, common area agreement or otherwise, the shared
         costs and expenses shall be equitably prorated and apportioned between
         the Property and the other buildings or properties. Expenses shall not
         include: the cost of capital improvements (except as set forth above);
         depreciation; interest (except as provided above for the amortization
         of capital improvements); principal payments of mortgage and other
         non-operating debts of Landlord; the cost of repairs or other work to
         the extent Landlord is reimbursed by insurance or condemnation
         proceeds; costs in connection with leasing space in the

                                       5

<PAGE>   8

         Building, including brokerage commissions; lease concessions,
         including rental abatements and construction allowances, granted to
         specific tenants; costs incurred in connection with the sale,
         financing or refinancing of the Building; fines, interest and
         penalties incurred due to the late payment of Taxes (defined in
         Section IV.D) or Expenses; organizational expenses associated with the
         creation and operation of the entity which constitutes Landlord; or
         any penalties or damages that Landlord pays to Tenant under this Lease
         or to other tenants in the Building under their respective leases. If
         the Building is not at least 95% occupied during any calendar year or
         if Landlord is not supplying services to at least 95% of the total
         Rentable Square Footage of the Building at any time during a calendar
         year, Expenses shall, at Landlord's option, be determined as if the
         Building had been 95% occupied and Landlord had been supplying
         services to 95% of the Rentable Square Footage of the Building during
         that calendar year. If Tenant pays for its Pro Rata Share of Expenses
         based on increases over a "Base Year" and Expenses for a calendar year
         are determined as provided in the prior sentence, Expenses for the
         Base Year shall also be determined as if the Building had been 95%
         occupied and Landlord had been supplying services to 95% of the
         Rentable Square Footage of the Building. The extrapolation of Expenses
         under this Section shall be performed by appropriately adjusting the
         cost of those components of Expenses that are impacted by changes in
         the occupancy of the Building.

     D.  Taxes Defined. "Taxes" shall mean: (1) all real estate taxes and other
         assessments on the Building and/or Property, including, but not limited
         to, assessments for special improvement districts and building
         improvement districts, taxes and assessments levied in substitution or
         supplementation in whole or in part of any such taxes and assessments
         and the Property's share of any real estate taxes and assessments under
         any reciprocal easement agreement, common area agreement or similar
         agreement as to the Property; (2) all personal property taxes for
         property that is owned by Landlord and used in connection with the
         operation, maintenance and repair of the Property; and (3) all costs
         and fees incurred in connection with seeking reductions in any tax
         liabilities described in (1) and (2), including, without limitation,
         any costs incurred by Landlord for compliance, review and appeal of tax
         liabilities. Without limitation, Taxes shall not include any income,
         capital levy, franchise, capital stock, gift, estate or inheritance
         tax. If an assessment is payable in installments, Taxes for the year
         shall include the amount of the installment and any interest due and
         payable during that year. For all other real estate taxes, Taxes for
         that year shall, at Landlord's election, include either the amount
         accrued, assessed or otherwise imposed for the year or the amount due
         and payable for that year, provided that Landlord's election shall be
         applied consistently throughout the Term. If a change in Taxes is
         obtained for any year of the Term during which Tenant paid Tenant's Pro
         Rata Share of any Tax Excess, then Taxes for that year will be
         retroactively adjusted and Landlord shall provide Tenant with a credit,
         if any, based on the adjustment. Likewise, if a change is obtained for
         Taxes for the Base Year, Taxes for the Base Year shall be restated and
         the Tax Excess for all subsequent years shall be recomputed. Tenant
         shall pay Landlord the amount of Tenant's Pro Rata Share of any such
         increase in the Tax Excess within 30 days after Tenant's receipt of a
         statement from Landlord.

     E.  Audit Rights. Tenant may, within 90 days after receiving Landlord's
         statement of Expenses, give Landlord written notice ("Review Notice")
         that Tenant intends to review Landlord's records of the Expenses for
         that calendar year. Within a reasonable time after receipt of the
         Review Notice, Landlord shall make all pertinent records available for
         inspection that are reasonably necessary for Tenant to conduct its
         review. If any records are maintained at a location other than the
         office of the Building, Tenant may either inspect the records at such
         other location or pay for the reasonable cost of copying and shipping
         the records. If Tenant retains an agent to review Landlord's records,
         the agent must be with a licensed CPA firm. Tenant shall be solely
         responsible for all costs, expenses and fees incurred for the audit.
         Within 60 days after the records are made available to Tenant, Tenant
         shall have the right to give Landlord written notice (an "Objection
         Notice") stating in reasonable detail any objection to Landlord's
         statement of Expenses for that year. If Tenant fails to give Landlord
         an Objection Notice within the 60 day period or fails to provide
         Landlord with a Review Notice within the 90 day period described above,
         Tenant shall be deemed to have approved Landlord's statement of
         Expenses and shall be barred from raising any claims regarding the
         Expenses for that year. If Tenant provides Landlord with a timely
         Objection Notice, Landlord and Tenant shall work together in good faith
         to resolve any issues raised in Tenant's Objection Notice. If Landlord
         and Tenant determine that

                                       6

<PAGE>   9

         Expenses for the calendar year are less than reported, Landlord shall
         provide Tenant with a credit against the next installment of Rent in
         the amount of the overpayment by Tenant. Likewise, if Landlord and
         Tenant determine that Expenses for the calendar year are greater than
         reported, Tenant shall pay Landlord the amount of any underpayment
         within 30 days. The records obtained by Tenant shall be treated as
         confidential. In no event shall Tenant be permitted to examine
         Landlord's records or to dispute any statement of Expenses unless
         Tenant has paid and continues to pay all Rent when due.

V.       COMPLIANCE WITH LAWS; USE.

         The Premises shall be used only for the Permitted Use and for no other
use whatsoever. Tenant shall not use or permit the use of the Premises for any
purpose which is illegal, dangerous to persons or property or which, in
Landlord's reasonable opinion, unreasonably disturbs any other tenants of the
Building or interferes with the operation of the Building. Tenant shall comply
with all Laws, including the Americans with Disabilities Act, regarding the
operation of Tenant's business and the use, condition, configuration and
occupancy of the Premises. Tenant, within 10 days after receipt, shall provide
Landlord with copies of any notices it receives regarding a violation or alleged
violation of any Laws. Tenant shall reimburse and compensate Landlord for all
expenditures made by, or damages or fines sustained or incurred by, Landlord due
to any violations of Laws by Tenant or any Tenant Related Parties with respect
to the Premises. Tenant shall comply with the rules and regulations of the
Building attached as EXHIBIT B and such other reasonable rules and regulations
adopted by Landlord from time to time. Tenant shall also cause its agents,
contractors, subcontractors, employees, customers, and subtenants to comply with
all rules and regulations. Landlord shall not knowingly discriminate against
Tenant in Landlord's enforcement of the rules and regulations.

VI.      SECURITY DEPOSIT.

         The Security Deposit shall be delivered to Landlord upon the execution
of this Lease by Tenant and shall be held by Landlord without liability for
interest (unless required by Law) as security for the performance of Tenant's
obligations. The Security Deposit is not an advance payment of Rent or a measure
of Tenant's liability for damages. Landlord may, from time to time, without
prejudice to any other remedy, use all or a portion of the Security Deposit to
satisfy past due Rent or to cure any uncured default by Tenant. If Landlord uses
the Security Deposit, Tenant shall on demand restore the Security Deposit to its
original amount. Landlord shall return any unapplied portion of the Security
Deposit to Tenant within 45 days after the later to occur of: (1) the
determination of Tenant's Pro Rata Share of any Tax Excess and Expense Excess
for the final year of the Term; (2) the date Tenant surrenders possession of the
Premises to Landlord in accordance with this Lease; or (3) the Termination Date.
If Landlord transfers its interest in the Premises, Landlord may assign the
Security Deposit to the transferee and, following the assignment and the
assumption of Landlord's responsibilities under this Article VI by the
transferee, Landlord shall have no further liability for the return of the
Security Deposit. Landlord shall not be required to keep the Security Deposit
separate from its other accounts.

VII.     SERVICES TO BE FURNISHED BY LANDLORD.

     A.  Landlord agrees to furnish Tenant with the following services: (1)
         Water service for use in the lavatories on each floor on which the
         Premises are located; (2) Heat and air conditioning in season during
         Normal Business Hours, at such temperatures and in such amounts as are
         standard for comparable buildings or as required by governmental
         authority. Tenant, upon such advance notice as is reasonably required
         by Landlord, shall have the right to receive HVAC service during hours
         other than Normal Business Hours. Tenant shall pay Landlord the
         standard charge for the additional service as reasonably determined by
         Landlord from time to time; (3) Maintenance and repair of the Property
         as described in Section IX.B.; (4) Janitor service on Business Days. If
         Tenant's use, floor covering or other improvements require special
         services in excess of the standard services for the Building, Tenant
         shall pay the additional cost attributable to the special services; (5)
         Elevator service; (6) Electricity to the Premises for general office
         use, in accordance with and subject to the terms and conditions in
         Article X; and (7) such other services as Landlord reasonably
         determines are necessary or appropriate for the Property.

                                       7

<PAGE>   10

     B.  Landlord's failure to furnish, or any interruption or termination of,
         services due to the application of Laws, the failure of any equipment,
         the performance of repairs, improvements or alterations, or the
         occurrence of any event or cause beyond the reasonable control of
         Landlord (a "Service Failure") shall not render Landlord liable to
         Tenant, constitute a constructive eviction of Tenant, give rise to an
         abatement of Rent, nor relieve Tenant from the obligation to fulfill
         any covenant or agreement. However, if the Premises, or a material
         portion of the Premises, is made untenantable for a period in excess of
         3 consecutive Business Days as a result of the Service Failure, then
         Tenant, as its sole remedy, shall be entitled to receive an abatement
         of Rent payable hereunder during the period beginning on the 4th
         consecutive Business Day of the Service Failure and ending on the day
         the service has been restored. If the entire Premises has not been
         rendered untenantable by the Service Failure, the amount of abatement
         that Tenant is entitled to receive shall be prorated based upon the
         percentage of the Premises rendered untenantable and not used by
         Tenant. In no event, however, shall Landlord be liable to Tenant for
         any loss or damage, including the theft of Tenant's Property (defined
         in Article XV), arising out of or in connection with the failure of any
         security services, personnel or equipment.

VIII.    LEASEHOLD IMPROVEMENTS.

         All improvements to the Premises (collectively, "Leasehold
Improvements") shall be owned by Landlord and shall remain upon the Premises
without compensation to Tenant. However, Landlord, by written notice to Tenant
within 30 days prior to the Termination Date, may require Tenant to remove, at
Tenant's expense: (1) Cable (defined in Section IX.A) installed by or for the
exclusive benefit of Tenant and located in the Premises or other portions of the
Building; and (2) any Leasehold Improvements that are performed by or for the
benefit of Tenant and, in Landlord's reasonable judgment, are of a nature that
would require removal and repair costs that are materially in excess of the
removal and repair costs associated with standard office improvements
(collectively referred to as "Required Removables"). Without limitation, it is
agreed that Required Removables include internal stairways, raised floors,
personal baths and showers, vaults, rolling file systems and structural
alterations and modifications of any type. The Required Removables designated by
Landlord shall be removed by Tenant before the Termination Date, provided that
upon prior written notice to Landlord, Tenant may remain in the Premises for up
to 5 days after the Termination Date for the sole purpose of removing the
Required Removables. Tenant's possession of the Premises shall be subject to all
of the terms and conditions of this Lease, including the obligation to pay Rent
on a per diem basis at the rate in effect for the last month of the Term. Tenant
shall repair damage caused by the installation or removal of Required
Removables. If Tenant fails to remove any Required Removables or perform related
repairs in a timely manner, Landlord, at Tenant's expense, may remove and
dispose of the Required Removables and perform the required repairs. Tenant,
within 30 days after receipt of an invoice, shall reimburse Landlord for the
reasonable costs incurred by Landlord. Notwithstanding the foregoing, Tenant, at
the time it requests approval for a proposed Alteration (defined in Section
IX.C) and at the time it submits the plans for the Initial Improvements, may
request in writing that Landlord advise Tenant whether the Alteration or any
portion of the Alteration or the Initial Alterations or any portion of the
Initial Alterations will be designated as a Required Removable. Within 10 days
after receipt of Tenant's request, Landlord shall advise Tenant in writing as to
which portions of the Alteration or the Initial Alterations, if any, will be
considered to be Required Removables.

IX.      REPAIRS AND ALTERATIONS.

     A.  Tenant's Repair Obligations. Tenant shall, at its sole cost and
         expense, promptly perform all maintenance and repairs to the Premises
         that are not Landlord's express responsibility under this Lease, and
         shall keep the Premises in good condition and repair, reasonable wear
         and tear excepted. Tenant's repair obligations include, without
         limitation, repairs to: (1) floor covering; (2) interior partitions;
         (3) doors; (4) the interior side of demising walls; (5) electronic,
         phone and data cabling and related equipment (collectively, "Cable")
         that is installed by or for the exclusive benefit of Tenant and located
         in the Premises or other portions of the Building; (6) supplemental air
         conditioning units, private showers and kitchens, including hot water
         heaters, plumbing, and similar facilities serving Tenant exclusively;
         and (7) Alterations performed by contractors retained by Tenant,
         including related HVAC balancing. All work shall be performed in
         accordance with the rules and procedures described in Section IX.C.
         below. If Tenant fails to make any repairs to the Premises for more
         than 15 days after notice from Landlord (although notice shall not be
         required if there is an emergency), Landlord may make the repairs, and
         Tenant shall pay the reasonable cost of the

                                       8
<PAGE>   11

         repairs to Landlord within 30 days after receipt of an invoice,
         together with an administrative charge in an amount equal to 10% of
         the cost of the repairs.

     B.  Landlord's Repair Obligations. Landlord shall keep and maintain in good
         repair and working order and make repairs to and perform maintenance
         upon: (1) structural elements of the Building; (2) mechanical
         (including HVAC), electrical, plumbing and fire/life safety systems
         serving the Building in general; (3) Common Areas; (4) the roof of the
         Building; (5) exterior windows of the Building; and (6) elevators
         serving the Building. Landlord shall promptly make repairs (considering
         the nature and urgency of the repair) for which Landlord is
         responsible. In addition, Landlord may elect, at the expense of Tenant,
         to repair any damage or injury to the Building caused by moving
         property of Tenant in or out of the Building, or by installation or
         removal of furniture or other property, or by misuse by, neglect or
         improper conduct of Tenant or any Tenant Related Parties (hereinafter
         defined).

     C.  Alterations. Tenant shall not make alterations, additions or
         improvements to the Premises or install any Cable in the Premises or
         other portions of the Building (collectively referred to as
         "Alterations") without first obtaining the written consent of Landlord
         in each instance, which consent shall not be unreasonably withheld or
         delayed. However, Landlord's consent shall not be required for any
         Alteration that satisfies all of the following criteria (a "Cosmetic
         Alteration"): (1) is of a cosmetic nature such as painting,
         wallpapering, hanging pictures and installing carpeting; (2) is not
         visible from the exterior of the Premises or Building; (3) will not
         affect the systems or structure of the Building; and (4) does not
         require work to be performed inside the walls or above the ceiling of
         the Premises. However, even though consent is not required, the
         performance of Cosmetic Alterations shall be subject to all the other
         provisions of this Section IX.C. Prior to starting work, Tenant shall
         furnish Landlord with plans and specifications reasonably acceptable to
         Landlord; names of contractors reasonably acceptable to Landlord
         (provided that Landlord may designate specific contractors with respect
         to Building systems); copies of contracts; necessary permits and
         approvals; evidence of contractor's and subcontractor's insurance in
         amounts reasonably required by Landlord; and any security for
         performance that is reasonably required by Landlord. Changes to the
         plans and specifications must also be submitted to Landlord for its
         approval. Alterations shall be constructed in a good and workmanlike
         manner using materials of a quality that is at least equal to the
         quality designated by Landlord as the minimum standard for the
         Building. Landlord may designate reasonable rules, regulations and
         procedures for the performance of work in the Building and, to the
         extent reasonably necessary to avoid disruption to the occupants of the
         Building, shall have the right to designate the time when Alterations
         may be performed. Tenant shall reimburse Landlord within 30 days after
         receipt of an invoice for sums paid by Landlord for third party
         examination of Tenant's plans for non-Cosmetic Alterations. In
         addition, within 30 days after receipt of an invoice from Landlord,
         Tenant shall pay Landlord a fee for Landlord's oversight and
         coordination of any non-Cosmetic Alterations equal to 10% of the cost
         of the non-Cosmetic Alterations. Upon completion, Tenant shall furnish
         "as-built" plans (except for Cosmetic Alterations), completion
         affidavits, full and final waivers of lien and receipted bills covering
         all labor and materials. Tenant shall assure that the Alterations
         comply with all insurance requirements and Laws. Landlord's approval of
         an Alteration shall not be a representation by Landlord that the
         Alteration complies with applicable Laws or will be adequate for
         Tenant's use. Tenant shall pay, as an additional charge, the entire
         increase in real estate taxes on the Building which shall, at any time
         prior to or after the Commencement Date, result from or be attributable
         to any alteration, addition or improvement to the Premises made by or
         for the account of Tenant in excess of the Building Standard
         improvements for the Building.

X.       USE OF ELECTRICAL SERVICES BY TENANT.

     A.  Electricity used by Tenant in the Premises shall be paid for by Tenant
         by a separate charge payable by Tenant to Landlord within 30 days after
         billing by Landlord. Electrical service to the Premises may be
         furnished by one or more companies providing electrical generation,
         transmission and distribution services, and the cost of electricity may
         consist of several different components or separate charges for such
         services, such as generation, distribution and stranded cost charges.
         Landlord shall have the exclusive right to select any company providing
         electrical service to the Premises, to aggregate the electrical service
         for the Property and Premises with other buildings, to purchase
         electricity through a broker and/or buyers group and to change

                                       9

<PAGE>   12

         the providers and manner of purchasing electricity. Landlord shall be
         entitled to receive a fee (if permitted by Law) for the selection of
         utility companies and the negotiation and administration of contracts
         for electricity, provided that the amount of such fee shall not exceed
         50% of any savings obtained by Landlord.

     B.  Tenant's use of electrical service shall not exceed, either in voltage,
         rated capacity, use beyond Normal Business Hours or overall load, that
         which Landlord deems to be standard for the Building. If Tenant
         requests permission to consume excess electrical service, Landlord may
         refuse to consent or may condition consent upon conditions that
         Landlord reasonably elects (including, without limitation, the
         installation of utility service upgrades, meters, submeters, air
         handlers or cooling units), and the additional usage (to the extent
         permitted by Law), installation and maintenance costs shall be paid by
         Tenant. Landlord shall have the right to separately meter electrical
         usage for the Premises and to measure electrical usage by survey or
         other commonly accepted methods.

XI.      ENTRY BY LANDLORD.

         Landlord, its agents, contractors and representatives may enter the
Premises to inspect or show the Premises, to clean and make repairs, alterations
or additions to the Premises, and to conduct or facilitate repairs, alterations
or additions to any portion of the Building, including other tenants' premises.
Except in emergencies or to provide janitorial and other Building services after
Normal Business Hours, Landlord shall provide Tenant with reasonable prior
notice of entry into the Premises, which may be given orally. If reasonably
necessary for the protection and safety of Tenant and its employees, Landlord
shall have the right to temporarily close all or a portion of the Premises to
perform repairs, alterations and additions. However, except in emergencies,
Landlord will not close the Premises if the work can reasonably be completed on
weekends and after Normal Business Hours. Entry by Landlord shall not constitute
constructive eviction or entitle Tenant to an abatement or reduction of Rent.

XII.     ASSIGNMENT AND SUBLETTING.

     A.  Except in connection with a Permitted Transfer (defined in Section
         XII.E. below), Tenant shall not assign, sublease, transfer or encumber
         any interest in this Lease or allow any third party to use any portion
         of the Premises (collectively or individually, a "Transfer") without
         the prior written consent of Landlord, which consent shall not be
         unreasonably withheld, conditioned or delayed if Landlord does not
         elect to exercise its termination rights under Section XII.B below.
         Without limitation, it is agreed that Landlord's consent shall not be
         considered unreasonably withheld if: (1) the proposed transferee's
         financial condition does not meet the criteria Landlord uses to select
         Building tenants having similar leasehold obligations; (2) the proposed
         transferee's business is not suitable for the Building considering the
         business of the other tenants and the Building's prestige, or would
         result in a violation of another tenant's rights; (3) the proposed
         transferee is a governmental agency or occupant of the Building; (4)
         Tenant is in default after the expiration of the notice and cure
         periods in this Lease; (5) any portion of the Building or Premises
         would likely become subject to additional or different Laws as a
         consequence of the proposed Transfer; or (6) Landlord has commenced
         negotiations with the proposed transferee for other space in the
         Building. Tenant shall not be entitled to receive monetary damages
         based upon a claim that Landlord unreasonably withheld its consent to a
         proposed Transfer and Tenant's sole remedy shall be an action to
         enforce any such provision through specific performance or declaratory
         judgment. Any attempted Transfer in violation of this Article shall, at
         Landlord's option, be void. Consent by Landlord to one or more
         Transfer(s) shall not operate as a waiver of Landlord's rights to
         approve any subsequent Transfers. In no event shall any Transfer or
         Permitted Transfer release or relieve Tenant from any obligation under
         this Lease.

     B.  As part of its request for Landlord's consent to a Transfer, Tenant
         shall provide Landlord with financial statements for the proposed
         transferee, a complete copy of the proposed assignment, sublease and
         other contractual documents and such other information as Landlord may
         reasonably request. Landlord shall, by written notice to Tenant within
         30 days of its receipt of the required information and documentation,
         either: (1) consent to the Transfer by the execution of a consent
         agreement in a form reasonably designated by Landlord or reasonably
         refuse to consent to the Transfer in writing; or (2) exercise its right
         to terminate this Lease with respect to the portion of the Premises
         that Tenant is proposing to assign or sublet. Any such termination
         shall be

                                       10
<PAGE>   13

         effective on the proposed effective date of the Transfer for which
         Tenant requested consent. Tenant shall pay Landlord a review fee of
         $2,000.00 for Landlord's review of any Permitted Transfer or requested
         Transfer.

     C.  Tenant shall pay Landlord 50% of all rent and other consideration which
         Tenant receives as a result of a Transfer that is in excess of the Rent
         payable to Landlord for the portion of the Premises and Term covered by
         the Transfer. Tenant shall pay Landlord for Landlord's share of any
         excess within 30 days after Tenant's receipt of such excess
         consideration. Tenant may deduct from the excess all reasonable and
         customary expenses directly incurred by Tenant attributable to the
         Transfer (other than Landlord's review fee), including brokerage fees,
         legal fees and construction costs. If Tenant is in Monetary Default
         (defined in Section XIX.A. below), Landlord may require that all
         sublease payments be made directly to Landlord, in which case Tenant
         shall receive a credit against Rent in the amount of any payments
         received (less Landlord's share of any excess).

     D.  Except as provided below with respect to a Permitted Transfer, if
         Tenant is a corporation, limited liability company, partnership, or
         similar entity, and if the entity which owns or controls a majority of
         the voting shares/rights at any time changes for any reason (including
         but not limited to a merger, consolidation or reorganization), such
         change of ownership or control shall constitute a Transfer. The
         foregoing shall not apply so long as Tenant is an entity whose
         outstanding stock is listed on a recognized security exchange, or if at
         least 80% of its voting stock is owned by another entity, the voting
         stock of which is so listed.

     E.  Tenant may assign its entire interest under this Lease to a successor
         to Tenant by purchase, merger, consolidation or reorganization without
         the consent of Landlord, provided that all of the following conditions
         are satisfied (a "Permitted Transfer"): (1) Tenant is not in default
         under this Lease; (2) Tenant's successor shall own all or substantially
         all of the assets of Tenant; (3) Tenant's successor shall have a net
         worth which is at least equal to the greater of Tenant's net worth at
         the date of this Lease or Tenant's net worth as of the day prior to the
         proposed purchase, merger, consolidation or reorganization; (4) the
         Permitted Use does not allow the Premises to be used for retail
         purposes; and (5) Tenant shall give Landlord sufficient written notice
         prior to the effective date of the proposed purchase, merger,
         consolidation or reorganization. Tenant's notice to Landlord shall
         include information and documentation showing that each of the above
         conditions has been satisfied. If requested by Landlord, Tenant's
         successor shall sign a commercially reasonable form of assumption
         agreement.

XIII.    LIENS.

         Tenant shall not permit mechanic's or other liens to be placed upon the
Property, Premises or Tenant's leasehold interest in connection with any work or
service done or purportedly done by or for benefit of Tenant. If a lien is so
placed, Tenant shall, within 10 days of notice from Landlord of the filing of
the lien, fully discharge the lien by settling the claim which resulted in the
lien or by bonding or insuring over the lien in the manner prescribed by the
applicable lien Law. If Tenant fails to discharge the lien, then, in addition to
any other right or remedy of Landlord, Landlord may bond or insure over the lien
or otherwise discharge the lien. Tenant shall reimburse Landlord for any amount
paid by Landlord to bond or insure over the lien or discharge the lien,
including, without limitation, reasonable attorneys' fees (if and to the extent
permitted by Law) within 30 days after receipt of an invoice from Landlord.

XIV.     INDEMNITY AND WAIVER OF CLAIMS.

     A.  Except to the extent caused by the negligence or willful misconduct of
         Landlord or any Landlord Related Parties (defined below), Tenant shall
         indemnify, defend and hold Landlord, its trustees, members, principals,
         beneficiaries, partners, officers, directors, employees, Mortgagee(s)
         (defined in Article XXVI) and agents ("Landlord Related Parties")
         harmless against and from all liabilities, obligations, damages,
         penalties, claims, actions, costs, charges and expenses, including,
         without limitation, reasonable attorneys' fees and other professional
         fees (if and to the extent permitted by Law), which may be imposed
         upon, incurred by or asserted against Landlord or any of the Landlord
         Related Parties and arising out of or in connection with any damage or
         injury occurring in the Premises or any negligence or willful
         misconduct (including violations of Law) of Tenant, the Tenant Related
         Parties (defined below) or any of Tenant's transferees, contractors or
         licensees.

                                       11
<PAGE>   14

     B.  Except to the extent caused by the negligence or willful misconduct of
         Tenant or any Tenant Related Parties (defined below), Landlord shall
         indemnify, defend and hold Tenant, its trustees, members, principals,
         beneficiaries, partners, officers, directors, employees and agents
         ("Tenant Related Parties") harmless against and from all liabilities,
         obligations, damages, penalties, claims, actions, costs, charges and
         expenses, including, without limitation, reasonable attorneys' fees and
         other professional fees (if and to the extent permitted by Law), which
         may be imposed upon, incurred by or asserted against Tenant or any of
         the Tenant Related Parties and arising out of or in connection with the
         negligence or willful misconduct (including violations of Law) of
         Landlord, the Landlord Related Parties or any of Landlord's
         contractors.

     C.  Landlord and the Landlord Related Parties shall not be liable for, and
         Tenant waives, all claims for loss or damage to Tenant's business or
         loss, theft or damage to Tenant's Property or the property of any
         person claiming by, through or under Tenant resulting from: (1) wind or
         weather; (2) the failure of any sprinkler, heating or air-conditioning
         equipment, any electric wiring or any gas, water or steam pipes; (3)
         the backing up of any sewer pipe or downspout; (4) the bursting,
         leaking or running of any tank, water closet, drain or other pipe; (5)
         water, snow or ice upon or coming through the roof, skylight, stairs,
         doorways, windows, walks or any other place upon or near the Building;
         (6) any act or omission of any party other than Landlord or Landlord
         Related Parties; and (7) any causes not reasonably within the control
         of Landlord. Tenant shall insure itself against such losses under
         Article XV below.

XV.      INSURANCE.

         Tenant shall carry and maintain the following insurance ("Tenant's
Insurance"), at its sole cost and expense: (1) Commercial General Liability
Insurance applicable to the Premises and its appurtenances providing, on an
occurrence basis, a minimum combined single limit of $2,000,000.00; (2) All Risk
Property/Business Interruption Insurance, including flood and earthquake,
written at replacement cost value and with a replacement cost endorsement
covering all of Tenant's trade fixtures, equipment, furniture and other personal
property within the Premises ("Tenant's Property"); (3) Workers' Compensation
Insurance as required by the state in which the Premises is located and in
amounts as may be required by applicable statute; and (4) Employers Liability
Coverage of at least $1,000,000.00 per occurrence. Any company writing any of
Tenant's Insurance shall have an A.M. Best rating of not less than A-VIII. All
Commercial General Liability Insurance policies shall name Tenant as a named
insured and Landlord (or any successor), Equity Office Properties Trust, a
Maryland real estate investment trust, EOP Operating Limited Partnership, a
Delaware limited partnership, and their respective members, principals,
beneficiaries, partners, officers, directors, employees, and agents, and other
designees of Landlord as the interest of such designees shall appear, as
additional insureds. All policies of Tenant's Insurance shall contain
endorsements that the insurer(s) shall give Landlord and its designees at least
30 days' advance written notice of any change, cancellation, termination or
lapse of insurance. Tenant shall provide Landlord with a certificate of
insurance evidencing Tenant's Insurance prior to the earlier to occur of the
Commencement Date or the date Tenant is provided with possession of the Premises
for any reason, and upon renewals at least 15 days prior to the expiration of
the insurance coverage. So long as the same is available at commercially
reasonable rates, Landlord shall maintain so called All Risk property insurance
on the Building at replacement cost value, as reasonably estimated by Landlord.
Except as specifically provided to the contrary, the limits of either party's'
insurance shall not limit such party's liability under this Lease.

XVI.     SUBROGATION.

         Notwithstanding anything in this Lease to the contrary, Landlord and
Tenant hereby waive and shall cause their respective insurance carriers to waive
any and all rights of recovery, claim, action or causes of action against the
other and their respective trustees, principals, beneficiaries, partners,
officers, directors, agents, and employees, for any loss or damage that may
occur to Landlord or Tenant or any party claiming by, through or under Landlord
or Tenant, as the case may be, with respect to Tenant's Property, the Building,
the Premises, any additions or improvements to the Building or Premises, or any
contents thereof, including all rights of recovery, claims, actions or causes of
action arising out of the negligence of Landlord or any Landlord Related Parties
or the negligence of Tenant or any Tenant Related Parties, which loss or damage
is (or would have been, had the insurance required by this Lease been carried)
covered by insurance.

                                       12

<PAGE>   15

XVII.    CASUALTY DAMAGE.

     A.  If all or any part of the Premises is damaged by fire or other
         casualty, Tenant shall immediately notify Landlord in writing. During
         any period of time that all or a material portion of the Premises is
         rendered untenantable as a result of a fire or other casualty, the Rent
         shall abate for the portion of the Premises that is untenantable and
         not used by Tenant. Landlord shall have the right to terminate this
         Lease if: (1) the Building shall be damaged so that, in Landlord's
         reasonable judgment, substantial alteration or reconstruction of the
         Building shall be required (whether or not the Premises has been
         damaged); (2) Landlord is not permitted by Law to rebuild the Building
         in substantially the same form as existed before the fire or casualty;
         (3) the Premises have been materially damaged and there is less than 2
         years of the Term remaining on the date of the casualty; (4) any
         Mortgagee requires that the insurance proceeds be applied to the
         payment of the mortgage debt; or (5) a material uninsured loss to the
         Building occurs. Landlord may exercise its right to terminate this
         Lease by notifying Tenant in writing within 90 days after the date of
         the casualty. If Landlord does not terminate this Lease, Landlord shall
         commence and proceed with reasonable diligence to repair and restore
         the Building and the Leasehold Improvements (excluding any Alterations
         that were performed by Tenant in violation of this Lease). However, in
         no event shall Landlord be required to spend more than the insurance
         proceeds received by Landlord. Landlord shall not be liable for any
         loss or damage to Tenant's Property or to the business of Tenant
         resulting in any way from the fire or other casualty or from the repair
         and restoration of the damage. Landlord and Tenant hereby waive the
         provisions of any Law relating to the matters addressed in this
         Article, and agree that their respective rights for damage to or
         destruction of the Premises shall be those specifically provided in
         this Lease.

     B.  If all or any portion of the Premises shall be made untenantable by
         fire or other casualty, Landlord shall, with reasonable promptness,
         cause an architect or general contractor selected by Landlord to
         provide Landlord and Tenant with a written estimate of the amount of
         time required to substantially complete the repair and restoration of
         the Premises and make the Premises tenantable again, using standard
         working methods ("Completion Estimate"). If the Completion Estimate
         indicates that the Premises cannot be made tenantable within 270 days
         from the date the repair and restoration is started, then regardless of
         anything in Section XVII.A above to the contrary, either party shall
         have the right to terminate this Lease by giving written notice to the
         other of such election within 10 days after receipt of the Completion
         Estimate. Tenant, however, shall not have the right to terminate this
         Lease if the fire or casualty was caused by the negligence or
         intentional misconduct of Tenant, Tenant Related Parties or any of
         Tenant's transferees, contractors or licensees.

XVIII.   CONDEMNATION.

         Either party may terminate this Lease if the whole or any material part
of the Premises shall be taken or condemned for any public or quasi-public use
under Law, by eminent domain or private purchase in lieu thereof (a "Taking").
Landlord shall also have the right to terminate this Lease if there is a Taking
of any portion of the Building or Property which would leave the remainder of
the Building unsuitable for use as an office building in a manner comparable to
the Building's use prior to the Taking. In order to exercise its right to
terminate the Lease, Landlord or Tenant, as the case may be, must provide
written notice of termination to the other within 45 days after the terminating
party first receives notice of the Taking. Any such termination shall be
effective as of the date the physical taking of the Premises or the portion of
the Building or Property occurs. If this Lease is not terminated, the Rentable
Square Footage of the Building, the Rentable Square Footage of the Premises and
Tenant's Pro Rata Share shall, if applicable, be appropriately adjusted. In
addition, Rent for any portion of the Premises taken or condemned shall be
abated during the unexpired Term of this Lease effective when the physical
taking of the portion of the Premises occurs. All compensation awarded for a
Taking, or sale proceeds, shall be the property of Landlord, any right to
receive compensation or proceeds being expressly waived by Tenant. However,
Tenant may file a separate claim at its sole cost and expense for Tenant's
Property and Tenant's reasonable relocation expenses, provided the filing of the
claim does not diminish the award which would otherwise be receivable by
Landlord.

XIX.     EVENTS OF DEFAULT.

                                       13

<PAGE>   16

     Tenant shall be considered to be in default of this Lease upon the
occurrence of any of the following events of default:

     A.  Tenant's failure to pay when due all or any portion of the Rent, if
         the failure continues for 5 days after written notice to Tenant
         ("Monetary Default").

     B.  Tenant's failure (other than a Monetary Default) to comply with any
         term, provision or covenant of this Lease, if the failure is not cured
         within 10 days after written notice to Tenant. However, if Tenant's
         failure to comply cannot reasonably be cured within 10 days, Tenant
         shall be allowed additional time (not to exceed 60 days) as is
         reasonably necessary to cure the failure so long as: (1) Tenant
         commences to cure the failure within 10 days, and (2) Tenant diligently
         pursues a course of action that will cure the failure and bring Tenant
         back into compliance with the Lease. However, if Tenant's failure to
         comply creates a hazardous condition, the failure must be cured
         immediately upon notice to Tenant. In addition, if Landlord provides
         Tenant with notice of Tenant's failure to comply with any particular
         term, provision or covenant of the Lease on 3 occasions during any 12
         month period, Tenant's subsequent violation of such term, provision or
         covenant shall, at Landlord's option, be an incurable event of default
         by Tenant.

     C.  Tenant or any Guarantor becomes insolvent, makes a transfer in fraud of
         creditors or makes an assignment for the benefit of creditors, or
         admits in writing its inability to pay its debts when due.

     D.  The leasehold estate is taken by process or operation of Law.

     E   In the case of any ground floor or retail Tenant, Tenant does not take
         possession of, or abandons or vacates all or any portion of the
         Premises.

     F.  Tenant is in default beyond any notice and cure period under any other
         lease or agreement with Landlord, including, without limitation, any
         lease or agreement for parking.

XX.      REMEDIES.

     A.  Upon any default, Landlord shall have the right without notice or
         demand (except as provided in Article XIX) to pursue any of its rights
         and remedies at Law or in equity, including any one or more of the
         following remedies:

         1.   Terminate this Lease, in which case Tenant shall immediately
              surrender the Premises to Landlord. If Tenant fails to surrender
              the Premises, Landlord may, in compliance with applicable Law and
              without prejudice to any other right or remedy, enter upon and
              take possession of the Premises and expel and remove Tenant,
              Tenant's Property and any party occupying all or any part of the
              Premises. Tenant shall pay Landlord on demand the amount of all
              past due Rent and other losses and damages which Landlord may
              suffer as a result of Tenant's default, whether by Landlord's
              inability to relet the Premises on satisfactory terms or
              otherwise, including, without limitation, all Costs of Reletting
              (defined below) and any deficiency that may arise from reletting
              or the failure to relet the Premises. "Costs of Reletting" shall
              include all costs and expenses incurred by Landlord in reletting
              or attempting to relet the Premises, including, without
              limitation, reasonable legal fees, brokerage commissions, the
              cost of alterations and the value of other concessions or
              allowances granted to a new tenant.

         2.   Terminate Tenant's right to possession of the Premises and, in
              compliance with applicable Law, expel and remove Tenant, Tenant's
              Property and any parties occupying all or any part of the
              Premises. Landlord may (but shall not be obligated to) relet all
              or any part of the Premises, without notice to Tenant, for a term
              that may be greater or less than the balance of the Term and on
              such conditions (which may include concessions, free rent and
              alterations of the Premises) and for such uses as Landlord in its
              absolute discretion shall determine. Landlord may collect and
              receive all rents and other income from the reletting. Tenant
              shall pay Landlord on demand all past due Rent, all Costs of
              Reletting and any deficiency arising from the reletting or
              failure to relet the Premises. Landlord shall not be responsible
              or liable for the failure to relet all or any part of the
              Premises or for the failure to collect any Rent. The re-entry or
              taking of possession of the Premises shall not be construed

                                       14
<PAGE>   17

              as an election by Landlord to terminate this Lease unless a
              written notice of termination is given to Tenant.

         3.   In lieu of calculating damages under Sections XX.A.1 or XX.A.2
              above, Landlord may elect to receive as damages the sum of (a) all
              Rent accrued through the date of termination of this Lease or
              Tenant's right to possession, and (b) an amount equal to the total
              Rent that Tenant would have been required to pay for the remainder
              of the Term discounted to present value at the Prime Rate (defined
              in Section XX.B. below) then in effect, minus the then present
              fair rental value of the Premises for the remainder of the Term,
              similarly discounted, after deducting all anticipated Costs of
              Reletting.

     B.  Unless expressly provided in this Lease, the repossession or
         re-entering of all or any part of the Premises shall not relieve Tenant
         of its liabilities and obligations under the Lease. No right or remedy
         of Landlord shall be exclusive of any other right or remedy. Each right
         and remedy shall be cumulative and in addition to any other right and
         remedy now or subsequently available to Landlord at Law or in equity.
         If Landlord declares Tenant to be in default, Landlord shall be
         entitled to receive interest on any unpaid item of Rent at a rate equal
         to the Prime Rate plus 4%. For purposes hereof, the "Prime Rate" shall
         be the per annum interest rate publicly announced as its prime or base
         rate by a federally insured bank selected by Landlord in the state in
         which the Building is located. Forbearance by Landlord to enforce one
         or more remedies shall not constitute a waiver of any default.

XXI.     LIMITATION OF LIABILITY.

         NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS LEASE, THE
LIABILITY OF LANDLORD (AND OF ANY SUCCESSOR LANDLORD) TO TENANT SHALL BE LIMITED
TO THE INTEREST OF LANDLORD IN THE PROPERTY. TENANT SHALL LOOK SOLELY TO
LANDLORD'S INTEREST IN THE PROPERTY FOR THE RECOVERY OF ANY JUDGMENT OR AWARD
AGAINST LANDLORD. NEITHER LANDLORD NOR ANY LANDLORD RELATED PARTY SHALL BE
PERSONALLY LIABLE FOR ANY JUDGMENT OR DEFICIENCY. BEFORE FILING SUIT FOR AN
ALLEGED DEFAULT BY LANDLORD, TENANT SHALL GIVE LANDLORD AND THE MORTGAGEE(S)
(DEFINED IN ARTICLE XXVI BELOW) WHOM TENANT HAS BEEN NOTIFIED HOLD MORTGAGES
(DEFINED IN ARTICLE XXVI BELOW) ON THE PROPERTY, BUILDING OR PREMISES, NOTICE
AND REASONABLE TIME TO CURE THE ALLEGED DEFAULT. WITHOUT LIMITING THE FOREGOING,
IN NO EVENT SHALL LANDLORD OR ANY MORTGAGEES OR LANDLORD RELATED PARTIES EVER BE
LIABLE FOR ANY CONSEQUENTIAL OR INCIDENTAL DAMAGES OR ANY LOST PROFITS OF
TENANT.

XXII.    NO WAIVER.

         Either party's failure to declare a default immediately upon its
occurrence, or delay in taking action for a default shall not constitute a
waiver of the default, nor shall it constitute an estoppel. Either party's
failure to enforce its rights for a default shall not constitute a waiver of its
rights regarding any subsequent default. Receipt by Landlord of Tenant's keys to
the Premises shall not constitute an acceptance or surrender of the Premises.

XXIII.   QUIET ENJOYMENT.

         Tenant shall, and may peacefully have, hold and enjoy the Premises,
subject to the terms of this Lease, provided Tenant pays the Rent and fully
performs all of its covenants and agreements. This covenant and all other
covenants of Landlord shall be binding upon Landlord and its successors only
during its or their respective periods of ownership of the Building, and shall
not be a personal covenant of Landlord or the Landlord Related Parties.

XXIV.    RELOCATION.

         Intentionally deleted.

XXV.     HOLDING OVER.

         Except for any permitted occupancy by Tenant under Article VIII, if
Tenant fails to surrender the Premises at the expiration or earlier termination
of this Lease, occupancy of the Premises after the termination or expiration
shall be that of a tenancy at sufferance. Tenant's

                                       15

<PAGE>   18

occupancy of the Premises during the holdover shall be subject to all the terms
and provisions of this Lease and Tenant shall pay an amount (on a per month
basis without reduction for partial months during the holdover) equal to 150% of
the greater of: (1) the sum of the Base Rent and Additional Rent due for the
period immediately preceding the holdover; or (2) the fair market gross rental
for the Premises as reasonably determined by Landlord. No holdover by Tenant or
payment by Tenant after the expiration or early termination of this Lease shall
be construed to extend the Term or prevent Landlord from immediate recovery of
possession of the Premises by summary proceedings or otherwise. In addition to
the payment of the amounts provided above, if Landlord is unable to deliver
possession of the Premises to a new tenant, or to perform improvements for a new
tenant, as a result of Tenant's holdover and Tenant fails to vacate the Premises
within 15 days after Landlord notifies Tenant of Landlord's inability to deliver
possession, or perform improvements, Tenant shall be liable to Landlord for all
damages, including, without limitation, consequential damages, that Landlord
suffers from the holdover.

XXVI.    SUBORDINATION TO MORTGAGES; ESTOPPEL CERTIFICATE.

         Tenant accepts this Lease subject and subordinate to any mortgage(s),
deed(s) of trust, ground lease(s) or other lien(s) now or subsequently arising
upon the Premises, the Building or the Property, and to renewals, modifications,
refinancings and extensions thereof (collectively referred to as a "Mortgage").
The party having the benefit of a Mortgage shall be referred to as a
"Mortgagee". This clause shall be self-operative, but upon request from a
Mortgagee, Tenant shall execute a commercially reasonable subordination
agreement in favor of the Mortgagee. In lieu of having the Mortgage be superior
to this Lease, a Mortgagee shall have the right at any time to subordinate its
Mortgage to this Lease. If requested by a successor-in-interest to all or a part
of Landlord's interest in the Lease, Tenant shall, without charge, attorn to the
successor-in-interest. Landlord and Tenant shall each, within 10 days after
receipt of a written request from the other, execute and deliver an estoppel
certificate to those parties as are reasonably requested by the other (including
a Mortgagee or prospective purchaser). The estoppel certificate shall include a
statement certifying that this Lease is unmodified (except as identified in the
estoppel certificate) and in full force and effect, describing the dates to
which Rent and other charges have been paid, representing that, to such party's
actual knowledge, there is no default (or stating the nature of the alleged
default) and indicating other matters with respect to the Lease that may
reasonably be requested. Notwithstanding the foregoing, upon written request by
Tenant, Landlord will use reasonable efforts to obtain a non-disturbance,
subordination and attornment agreement from Landlord's then current Mortgagee on
such Mortgagee's then current standard form of agreement. "Reasonable efforts"
of Landlord shall not require Landlord to incur any cost, expense or liability
to obtain such agreement, it being agreed that Tenant shall be responsible for
any fee or review costs charged by the Mortgagee. Upon request of Landlord,
Tenant will execute the Mortgagee's form of non-disturbance, subordination and
attornment agreement and return the same to Landlord for execution by the
Mortgagee. Landlord's failure to obtain a non-disturbance, subordination and
attornment agreement for Tenant shall have no effect on the rights, obligations
and liabilities of Landlord and Tenant or be considered to be a default by
Landlord hereunder.

XXVII.   ATTORNEYS' FEES.

         If either party institutes a suit against the other for violation of or
to enforce any covenant or condition of this Lease, or if either party
intervenes in any suit in which the other is a party to enforce or protect its
interest or rights, the prevailing party shall be entitled to all of its costs
and expenses, including, without limitation, reasonable attorneys' fees.

XXVIII.  NOTICE.

         If a demand, request, approval, consent or notice (collectively
referred to as a "notice") shall or may be given to either party by the other,
the notice shall be in writing and delivered by hand or sent by registered or
certified mail with return receipt requested, or sent by overnight or same day
courier service at the party's respective Notice Address(es) set forth in
Article I, except that if Tenant has vacated the Premises (or if the Notice
Address for Tenant is other than the Premises, and Tenant has vacated such
address) without providing Landlord a new Notice Address, Landlord may serve
notice in any manner described in this Article or in any other manner permitted
by Law. Each notice shall be deemed to have been received or given on the
earlier to occur of actual delivery or the date on which delivery is refused,
or, if Tenant has vacated the Premises or the other Notice Address of Tenant
without providing a new Notice Address, three (3) days after notice is deposited
in the U.S. mail or with a courier

                                       16

<PAGE>   19

service in the manner described above. Either party may, at any time, change its
Notice Address by giving the other party written notice of the new address in
the manner described in this Article.

XXIX.    EXCEPTED RIGHTS.

         This Lease does not grant any rights to light or air over or about the
Building. Landlord excepts and reserves exclusively to itself the use of: (1)
roofs, (2) telephone, electrical and janitorial closets, (3) equipment rooms,
Building risers or similar areas that are used by Landlord for the provision of
Building services, (4) rights to the land and improvements below the floor of
the Premises, (5) the improvements and air rights above the Premises, (6) the
improvements and air rights outside the demising walls of the Premises, and (7)
the areas within the Premises used for the installation of utility lines and
other installations serving occupants of the Building. Landlord has the right to
change the Building's name or address. Landlord also has the right to make such
other changes to the Property and Building as Landlord deems appropriate,
provided the changes do not materially affect Tenant's ability to use the
Premises for the Permitted Use. Landlord shall also have the right (but not the
obligation) to temporarily close the Building if Landlord reasonably determines
that there is an imminent danger of significant damage to the Building or of
personal injury to Landlord's employees or the occupants of the Building. The
circumstances under which Landlord may temporarily close the Building shall
include, without limitation, electrical interruptions, hurricanes and civil
disturbances. A closure of the Building under such circumstances shall not
constitute a constructive eviction nor entitle Tenant to an abatement or
reduction of Rent.

XXX.     SURRENDER OF PREMISES.

         At the expiration or earlier termination of this Lease or Tenant's
right of possession, Tenant shall remove Tenant's Property (defined in Article
XV) from the Premises, and quit and surrender the Premises to Landlord, broom
clean, and in good order, condition and repair, ordinary wear and tear excepted.
Tenant shall also be required to remove the Required Removables in accordance
with Article VIII. If Tenant fails to remove any of Tenant's Property within 2
days after the termination of this Lease or of Tenant's right to possession,
Landlord, at Tenant's sole cost and expense, shall be entitled (but not
obligated) to remove and store Tenant's Property. Landlord shall not be
responsible for the value, preservation or safekeeping of Tenant's Property.
Tenant shall pay Landlord, upon demand, the expenses and storage charges
incurred for Tenant's Property. In addition, if Tenant fails to remove Tenant's
Property from the Premises or storage, as the case may be, within 30 days after
written notice, Landlord may deem all or any part of Tenant's Property to be
abandoned, and title to Tenant's Property shall be deemed to be immediately
vested in Landlord.

XXXI.    MISCELLANEOUS.

     A.  This Lease and the rights and obligations of the parties shall be
         interpreted, construed and enforced in accordance with the Laws of the
         state in which the Building is located and Landlord and Tenant hereby
         irrevocably consent to the jurisdiction and proper venue of such state.
         If any term or provision of this Lease shall to any extent be invalid
         or unenforceable, the remainder of this Lease shall not be affected,
         and each provision of this Lease shall be valid and enforced to the
         fullest extent permitted by Law. The headings and titles to the
         Articles and Sections of this Lease are for convenience only and shall
         have no effect on the interpretation of any part of the Lease.

     B.  Tenant shall not record this Lease or any memorandum or notice without
         Landlord's prior written consent; provided, however, Landlord agrees to
         consent to the recordation or registration of a memorandum or notice of
         this Lease, at Tenant's cost and expense (and in a form reasonably
         satisfactory to Landlord), if the initial term of this Lease or the
         initial term plus any renewal terms granted exceed, in the aggregate, 7
         years. If this Lease is terminated before the Term expires, upon
         Landlord's request the parties shall execute, deliver and record an
         instrument acknowledging the above and the date of the termination of
         this Lease, and Tenant appoints Landlord its attorney-in-fact in its
         name and behalf to execute the instrument if Tenant shall fail to
         execute and deliver the instrument after Landlord's request therefor
         within 10 days.

     C.  Landlord and Tenant hereby waive any right to trial by jury in any
         proceeding based upon a breach of this Lease.

                                       17

<PAGE>   20

     D.  Whenever a period of time is prescribed for the taking of an action by
         Landlord or Tenant, the period of time for the performance of such
         action shall be extended by the number of days that the performance is
         actually delayed due to strikes, acts of God, shortages of labor or
         materials, war, civil disturbances and other causes beyond the
         reasonable control of the performing party ("Force Majeure"). However,
         events of Force Majeure shall not extend any period of time for the
         payment of Rent or other sums payable by either party or any period of
         time for the written exercise of an option or right by either party.

     E.  Landlord shall have the right to transfer and assign, in whole or in
         part, all of its rights and obligations under this Lease and in the
         Building and/or Property referred to herein, and upon such transfer
         Landlord shall be released from any further obligations hereunder, and
         Tenant agrees to look solely to the successor in interest of Landlord
         for the performance of such obligations.

     F.  Tenant represents that it has dealt directly with and only with the
         Broker as a broker in connection with this Lease. Tenant shall
         indemnify and hold Landlord and the Landlord Related Parties harmless
         from all claims of any other brokers claiming to have represented
         Tenant in connection with this Lease. Landlord agrees to indemnify and
         hold Tenant and the Tenant Related Parties harmless from all claims of
         any brokers claiming to have represented Landlord in connection with
         this Lease.

     G.  Tenant covenants, warrants and represents that: (1) each individual
         executing, attesting and/or delivering this Lease on behalf of Tenant
         is authorized to do so on behalf of Tenant; (2) this Lease is binding
         upon Tenant; and (3) Tenant is duly organized and legally existing in
         the state of its organization and is qualified to do business in the
         state in which the Premises are located. If there is more than one
         Tenant, or if Tenant is comprised of more than one party or entity, the
         obligations imposed upon Tenant shall be joint and several obligations
         of all the parties and entities. If Tenant is a partnership, then each
         present and future partner shall be personally bound by and upon all of
         the covenants, agreements, terms, provisions and conditions to be
         performed by Tenant. Landlord may request (and Tenant shall comply)
         that Tenant, at the time that Tenant admits any new partner to its
         partnership, require each new partner to execute an agreement in form
         and substance satisfactory to Landlord under which the new partner
         shall agree to be personally bound by and upon all of the covenants,
         agreements, terms, provisions and conditions to be performed by Tenant,
         without regard to when the new partner is admitted to the partnership
         (or when any obligations under any of covenants, agreements, terms,
         provisions and conditions accrue). Notices, payments and agreements
         given or made by, with or to any one person or entity shall be deemed
         to have been given or made by, with and to all of them.

     H.  Time is of the essence with respect to Tenant's exercise of any
         expansion, renewal or extension rights granted to Tenant. This Lease
         shall create only the relationship of landlord and tenant between the
         parties, and not a partnership, joint venture or any other
         relationship. This Lease and the covenants and conditions in this Lease
         shall inure only to the benefit of and be binding only upon Landlord
         and Tenant and their permitted successors and assigns.

     I.  The expiration of the Term, whether by lapse of time or otherwise,
         shall not relieve either party of any obligations which accrued prior
         to or which may continue to accrue after the expiration or early
         termination of this Lease. Without limiting the scope of the prior
         sentence, it is agreed that Tenant's obligations under Sections IV.A,
         IV.B., VIII, XIV, XX, XXV and XXX shall survive the expiration or early
         termination of this Lease.

     J.  Landlord has delivered a copy of this Lease to Tenant for Tenant's
         review only, and the delivery of it does not constitute an offer to
         Tenant or an option. This Lease shall not be effective against any
         party hereto until an original copy of this Lease has been signed by
         such party.

     K.  All understandings and agreements previously made between the parties
         are superseded by this Lease, and neither party is relying upon any
         warranty, statement or representation not contained in this Lease. This
         Lease may be modified only by a written agreement signed by Landlord
         and Tenant.

                                       18

<PAGE>   21

     L.  Tenant, within 15 days after request, shall provide Landlord with a
         current financial statement and such other information as Landlord may
         reasonably request in order to create a "business profile" of Tenant
         and determine Tenant's ability to fulfill its obligations under this
         Lease. Landlord, however, shall not require Tenant to provide such
         information unless Landlord is requested to produce the information in
         connection with a proposed financing or sale of the Building. Upon
         written request by Tenant, Landlord shall enter into a commercially
         reasonable confidentiality agreement covering any confidential
         information that is disclosed by Tenant.

XXXII.   ENTIRE AGREEMENT.

         This Lease and the following exhibits and attachments constitute the
entire agreement between the parties and supersede all prior agreements and
understandings related to the Premises, including all lease proposals, letters
of intent and other documents: EXHIBIT A (Outline and Location of Premises),
EXHIBIT B (Rules and Regulations), EXHIBIT C (Commencement Letter), EXHIBIT D
(Work Letter Agreement) and EXHIBIT E (Commencement Date Agreement (for
recording).

         Landlord and Tenant have executed this Lease as of the day and year
first above written.

WITNESS/ATTEST:                      LANDLORD:

                                     EOP-NEW ENGLAND EXECUTIVE PARK, L.L.C., A
                                     DELAWARE LIMITED LIABILITY COMPANY

                                     By: EOP Operating Limited Partnership, a
                                         Delaware limited partnership, its sole
                                         member

                                         By: Equity Office Properties Trust, a
                                             Maryland real estate investment
                                             trust, its managing general partner

/s/ Hannah Song                              By:    /s/ Tom Bakke

Name (print): Hannah Song                    Name:  Thomas Q. Bakke

----------------------------------           Title: Vice President

Name (print):
               -------------------

WITNESS/ATTEST:                      TENANT:

                                     ZAMBA CORPORATION, A DELAWARE CORPORATION

                                     By:    /s/ Peter D. Marton
/s/ Melissa L. Lightbody
                                     Name:  Peter D. Marton
Name (print): Melissa L. Lightbody
                                     Title: COO
----------------------------------

Name (print):
               -------------------

                                       19<PAGE>   1
                                                                    EXHIBIT 10.1

                                                               EXECUTION VERSION

                            ASSET PURCHASE AGREEMENT

                                  BY AND AMONG

                        ENSTAR INCOME PROGRAM II-1, L.P.,
                        ENSTAR INCOME PROGRAM II-2, L.P.,
                        ENSTAR INCOME PROGRAM IV-3, L.P.,
                    ENSTAR INCOME/GROWTH PROGRAM SIX-A, L.P.,
                        ENSTAR IX, LTD., ENSTAR XI, LTD.,
                         ENSTAR IV/PBD SYSTEMS VENTURE,
                      ENSTAR CABLE OF CUMBERLAND VALLEY AND
                        ENSTAR CABLE OF MACOUPIN COUNTY,
                                   AS SELLERS,

                                       AND

                          MULTIMEDIA ACQUISITION CORP.,
                                    AS BUYER

                           Dated as of August 8, 2000

<PAGE>   2

                         LIST OF EXHIBITS AND SCHEDULES

Exhibits

A        Form of Deposit Escrow Agreement
B        Form of Indemnity Escrow Agreement
C        Form of Bill of Sale and Assignment and Assumption Agreement
D        Form of Opinion of Sellers' Counsel
E        Form of Opinion of Sellers' FCC Counsel
F        Form of Opinion of Buyer's Counsel

Schedules

1.1A            Purchase Price Allocation; Subscriber Adjustment Amounts;
                Minimum Subscriber Numbers; Indemnification Allocation
1.1B            Permitted Encumbrances
2.1(b)(i)       Programming and Retransmission Consent Agreements Being Assigned
2.1(b)(viii)    Excluded Assets
4.3             Required Consents
4.4             Financial Statements
4.6(a)          Owned Real Property
4.6(b)          Leased Real Property
4.7(b)          Personal Property Leases
4.8             Governmental Authorizations
4.8A            Agreements and Governmental Authorizations Not Delivered
4.9             Agreements
4.10            Pole Attachment Agreements; Related Agreements
4.11            Retransmission Consent and Must-Carry; Rate Regulation
4.12            Litigation
4.14(a)         Systems Plans
4.17            Bonds; Guaranties; Letters of Credit
4.18            Information on the Systems and Subscribers

                                      -v-
<PAGE>   3

                                TABLE OF CONTENTS

                                                                            PAGE
1.  DEFINITIONS................................................................1

    1.1  Terms Defined in this Section.........................................1

    1.2  Other Definitions.....................................................9

2.  SALE OF ASSETS; ASSUMPTION OF CERTAIN LIABILITIES.........................10

    2.1  Sales of Assets......................................................10

    2.2  Assumed Liabilities..................................................12

3.  CLOSING...................................................................12

    3.1  Purchase Price.......................................................12

    3.2  Manner and Time of Closing and Payment...............................12

    3.3  Adjustment of Purchase Price.........................................13

    3.4  Instrument of Assignment and Assumption..............................16

    3.5  Deposit Escrow Agreement.............................................16

    3.6  Post-Closing Adjustment of Enstar II-2 and Enstar IV Purchase Price..16

    3.7  Purchase Price Allocation............................................16

4.  REPRESENTATIONS AND WARRANTIES OF SELLERS.................................16

    4.1  Organization, Qualification and Power................................16

    4.2  Capacity; Due Authorization; Enforceability..........................17

    4.3  Absence of Conflicting Agreements....................................17

    4.4  Financial Statements; Absence of Undisclosed Liabilities; Accounts
         Receivable...........................................................18

    4.5  Absence of Certain Changes...........................................18

    4.6  Real Property; Leases; Condemnation..................................18

    4.7  Personal Property....................................................18

    4.8  Governmental Authorizations..........................................19

    4.9  Agreements...........................................................19

    4.10 Pole Attachment Agreements; Related Agreements.......................20

    4.11 Retransmission Consent and Must-Carry; Rate Regulation; Copyright
         Compliance...........................................................20

    4.12 Litigation...........................................................21

    4.13 Compliance with Laws.................................................21

    4.14 Employee Benefit Plans...............................................21

                                      -i-
<PAGE>   4

                                TABLE OF CONTENTS
                                   (CONTINUED)

                                                                            PAGE

    4.15 Labor Relations; Employees...........................................21

    4.16 Environmental Matters................................................22

    4.17 Bonds; Letters of Credit.............................................22

    4.18 Information on the Systems and Subscribers...........................22

    4.19 Broker; Brokers' Fees................................................23

5.  REPRESENTATIONS AND WARRANTIES OF BUYER...................................23

    5.1  Organization, Qualification and Power................................23

    5.2  Capacity; Due Authorization; Enforceability..........................23

    5.3  Absence of Conflicting Agreements....................................23

    5.4  Litigation...........................................................24

    5.5  Financial Capability.................................................24

    5.6  Brokers..............................................................24

6.  COVENANTS OF SELLERS AND BUYER............................................24

    6.1  Continuity and Maintenance of Operations.............................24

    6.2  Access to Sellers; Confidentiality...................................25

    6.3  Notification.........................................................26

    6.4  No Public Announcement...............................................26

    6.5  Regulatory Filings...................................................26

    6.6  Employees; Employee Benefits.........................................26

    6.7  Required Consents....................................................28

    6.8  Use of Transferor's Name.............................................29

    6.9  Delivery of Subscriber Information...................................29

    6.10 Tax Matters..........................................................30

    6.11 Further Assurances; Satisfaction of Covenants........................30

    6.12 Environmental Reports; Title Commitments.............................30

    6.13 Limited Partner Consents.............................................32

    6.14 Acquisition Proposals................................................33

    6.15 Noncompetition Agreement.............................................33

    6.16 Microwave Services; Headend Services.................................33

    6.17 Performance of Settlement Agreement..................................34

                                      -ii-
<PAGE>   5

                                TABLE OF CONTENTS
                                   (CONTINUED)

                                                                            PAGE

7.  CONDITIONS PRECEDENT TO BUYER'S OBLIGATIONS...............................34

    7.1  Representations and Warranties of Sellers............................34

    7.2  Covenants............................................................35

    7.3  Transferable Franchise Areas; Material Consents; Franchise Renewals;
         Franchise Extensions.................................................35

    7.4  Hart-Scott-Rodino Act................................................35

    7.5  Judgment.............................................................35

    7.6  Delivery of Certificates and Documents...............................35

    7.7  Opinion of Sellers' Counsel..........................................36

    7.8  Opinion of Sellers' FCC Counsel......................................36

    7.9  General and Limited Partner Consents.................................36

    7.10 Aggregate Subscriber Total...........................................36

8.  CONDITIONS PRECEDENT TO SELLERS' OBLIGATIONS..............................37

    8.1  Representations and Warranties of Buyer..............................37

    8.2  Covenants............................................................37

    8.3  Transferable Franchise Areas; Material Consents......................37

    8.4  Hart-Scott-Rodino Act................................................37

    8.5  Judgment.............................................................37

    8.6  General and Limited Partner Consents.................................37

    8.7  Aggregate Subscriber Total...........................................38

    8.8  Delivery of Certificates and Documents...............................38

    8.9  Opinion of Buyer's Counsel...........................................38

    8.10 Payment for Assets...................................................38

9.  RETAINED FRANCHISES AND ASSETS............................................38

    9.1  Non-Transferable Franchise Areas.....................................38

    9.2  Retained Franchise Consents..........................................39

    9.3  Subsequent Closings..................................................39

    9.4  Final Closing........................................................39

    9.5  Franchise Purchase Price; Discounted Franchise Purchase Price........39

    9.6  Management Agreement.................................................40

                                     -iii-
<PAGE>   6
                                TABLE OF CONTENTS
                                   (CONTINUED)

                                                                            PAGE

10. SURVIVAL OF REPRESENTATIONS AND WARRANTIES; INDEMNIFICATION...............40

    10.1 Survival of Representations and Warranties...........................40

    10.2 Indemnification......................................................40

    10.3 Assertion of Claims..................................................40

    10.4 Notice of and Right to Defend Third Party Claims.....................41

    10.5 Limitations of Liability.............................................41

    10.6 Indemnity Escrow Agreement...........................................42

11. TERMINATION...............................................................42

    11.1 Termination..........................................................42

    11.2 Breakup Fee; Acquisition Proposals...................................43

    11.3 Reimbursement of Expenses............................................44

    11.4 Surviving Obligations................................................44

    11.5 Attorney's Fees......................................................45

12. EXPENSES..................................................................45

13. ENTIRE AGREEMENT..........................................................45

14. PARTIES OBLIGATED AND BENEFITED...........................................45

15. NOTICES...................................................................45

16. AMENDMENTS AND WAIVERS....................................................47

17. SEVERABILITY..............................................................47

18. SECTION HEADINGS AND TERMS................................................47

19. COUNTERPARTS..............................................................47

20. GOVERNING LAW; CONSENT IN JURISDICTION....................................47

21. SPECIFIC PERFORMANCE......................................................48

                                      -iv-
<PAGE>   7

An extra section break has been inserted above this paragraph. Do not delete
this section break if you plan to add text after the Table of
Contents/Authorities. Deleting this break will cause Table of
Contents/Authorities headers and footers to appear on any pages following the
Table of Contents/Authorities.

                                       i
<PAGE>   8

                            ASSET PURCHASE AGREEMENT

                  THIS AGREEMENT, made as of the 8th day of August, 2000, is by
and among Multimedia Acquisition Corp., a Pennsylvania corporation ("Buyer"),
and Enstar Income Program II-1, L.P., a Georgia limited partnership, Enstar
Income Program II-2, L.P., a Georgia limited partnership, Enstar Income Program
IV-3, L.P., a Georgia limited partnership, Enstar Income/Growth Program Six-A,
L.P., a Georgia limited partnership, Enstar IX, Ltd., a Georgia limited
partnership, Enstar XI, Ltd., a Georgia limited partnership, Enstar IV/PBD
Systems Venture, a Georgia general partnership, Enstar Cable of Cumberland
Valley, a Georgia general partnership, and Enstar Cable of Macoupin County, a
Georgia general partnership (collectively, "Sellers," and each individually, a
"Seller").

                              W I T N E S S E T H:

                  WHEREAS, Sellers own and operate cable television Systems (as
hereinafter defined) serving areas in and around Taylorville, Hillsboro, Flora,
Macoupin, Shelbyville and Mt. Carmel, Illinois; Dexter, Malden and Pomme de
Terre, Missouri; the Monticello area of Kentucky and Tennessee; Ashdown,
Arkansas; and Mobile, Alabama, as more particularly described in Schedule 4.18
hereto;

                  WHEREAS, Sellers have agreed to convey to Buyer substantially
all of their respective assets comprising or used or usable in connection with
their operation of their respective Systems, upon the terms and conditions set
forth herein;

                  WHEREAS, Buyer has agreed to assume certain specified
liabilities of Sellers, upon the terms and conditions set forth herein; and

                  NOW, THEREFORE, in consideration of the representations and
warranties and the mutual covenants and agreements herein contained, and other
good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, Sellers and Buyer do hereby agree as follows:

1.       Definitions.

         1.1      Terms Defined in this Section. In addition to the terms
defined elsewhere in this Agreement, the following terms shall have the
following meanings when used herein with initial capital letters:

                  "Accounts Receivable" means the sum of 99% of the book value
of all subscriber accounts receivable that are outstanding as of the Closing
Date and no part of which other than $5.00 is more than sixty (60) days past due
(with an account being past due one day after the first day of the period to
which the applicable billing relates); plus 95% of the book value of all
advertising and other accounts receivable that are outstanding as of the Closing
Date and no part of which other than $5.00 is more than ninety (90) days from
the invoice date.

<PAGE>   9

                  "Affiliate" means, with respect to any Person, any other
Person controlling, controlled by or under common control with, such Person,
with "control" for such purpose meaning the possession, directly or indirectly,
of the power to direct or cause the direction of the management and policies of
a Person, whether through the ownership of voting securities or voting
interests, by contract or otherwise.

                  "Basic Cable Service" means the tier of cable television
service that includes the retransmission of local broadcast signals as defined
by the Cable Act.

                  "Business Day" means any day other than Saturday, Sunday or a
day on which banking institutions in New York, New York are required or
authorized to be closed.

                  "Cable Act" means Title VI of the Communications Act of 1934,
as amended, 47 U.S.C. Sections 151 et seq., all other provisions of the Cable
Communications Policy Act of 1984 and the provisions of the Cable Television
Consumer Protection and Competition Act of 1992, and the provisions of the
Telecommunications Act of 1996 amending Title VI of the Communications Act of
1934, in each case as amended and in effect from time to time.

                  "Charter" means Charter Communications, Inc., a Delaware
Corporation.

                  "Closing Date Subscriber Count" means the number of
Subscribers served by a Seller, System or Illinois System Group, as the case may
be, as of the Closing Date.

                  "Code" means the Internal Revenue Code of 1986, as amended,
and the rules and regulations promulgated thereunder as in effect from time to
time.

                  "Communications Act" means the Communications Act of 1934, as
amended by the Cable Communications Policy Act of 1984, the Cable Television
Consumer Protection and Competition Act of 1992 and the provisions of the
Telecommunications Act of 1996 amending Title VI of the Communications Act of
1934, and as may be further amended, and the rules and regulations, policies and
published decisions of the FCC thereunder, as in effect from time to time.

                  "Compensation Arrangement" means any plan or compensation
arrangement, other than an Employee Plan or a Multiemployer Plan, whether
written or unwritten, which provides to employees or former employees of Seller
or any ERISA Affiliate any compensation or other benefits, whether deferred or
not, in excess of base salary or wages and excluding overtime pay, and
including, but not limited to, any bonus (including any bonus given to motivate
employees to work for Seller through the Closing), incentive plan, stock rights
plan, deferred compensation arrangement, stock purchase plan, severance pay plan
and any other perquisites and employees fringe benefit plans.

                  "Deposit Amount" means the amount of $4,250,000 (which amount
shall be allocated among Sellers on a pro rata basis based on the allocation of
the aggregate Purchase Price among Sellers), being deposited by Buyer with the
Escrow Agent pursuant to the Deposit Escrow Agreement to secure Buyer's
performance of its covenants and obligations to the respective Sellers
hereunder.

                                       2

<PAGE>   10

                  "Deposit Escrow Agreement" means the Deposit Escrow Agreement
among Buyer, Sellers and the Escrow Agent substantially in the form of Exhibit
A.

                  "Dexter Franchise" means the Franchise(s) covering the
System(s) serving the community of Dexter, Missouri.

                  "Employee" means any person employed by a Seller.

                  "Employee Plan" means any pension, retirement, profit-sharing,
deferred compensation, vacation, severance, bonus, incentive, medical, vision,
dental, disability, life insurance or any other employee benefit plan as defined
in Section 3(3) of ERISA (other than a Multiemployer Plan) to which any Seller
or any of its ERISA Affiliates contributes or has any obligation to contribute
or to which any Seller or any of its ERISA Affiliates sponsors, maintains or
otherwise has liability.

                  "Encumbrance" means any mortgage, lien, security interest,
security agreement, conditional sale or other title retention agreement, pledge,
option, charge, assessment, restriction, encumbrance, adverse interest, adverse
claim, voting agreement, restriction on transfer or any exception to or defect
in title.

                  "Enstar" means Enstar Communications Corporation, a Georgia
corporation.

                  "Enstar II-2" means Enstar Income Program II-2, L.P.

                  "Enstar IV" means Enstar IV/PBD Systems Venture.

                  "Enstar IX" means Enstar IX, Ltd.

                  "Enstar Cumberland" means Enstar Cable of Cumberland Valley.

                  "Environmental Claim" means any claim or charge of a violation
of or noncompliance with any Environmental Law.

                  "Environmental Laws" means any and all federal, state or local
laws, statutes, rules, regulations, ordinances, orders, decrees and other
binding obligations: (i) related to releases or threatened releases of any
Hazardous Substance to soil, surface water, groundwater, air or any other
environmental media; (ii) governing the use, treatment, storage, disposal,
transport or handling of Hazardous Substances; or (iii) related to the
protection of the environment and human health. Such Environmental Laws shall
include, but are not limited to, RCRA, CERCLA, EPCRA, the Clean Air Act, the
Clean Water Act, the Safe Drinking Water Act, the Toxic Substances Control Act,
the Endangered Species Act and any other federal, state or local laws, statutes,
ordinances, rules, orders, permit conditions, licenses or any terms or
provisions thereof related to clauses (i), (ii) or (iii) above.

                  "ERISA" means the Employee Retirement Income Security Act of
1974, as amended, and the rules and regulations thereunder, as in effect from
time to time.

                                       3

<PAGE>   11

                  "ERISA Affiliate" means, with respect to any Seller, (i) any
corporation which at, or at any time before, the Closing Date is or was a member
of the same controlled group of corporations (within the meaning of Section
414(b) of the Code) as Seller; (ii) any partnership, trade or business (whether
or not incorporated) which, at or any time before, the Closing Date is or was
under common control (within the meaning of Section 414(c) of the Code) with
such Seller; (iii) any entity, which at, or at any time before, the Closing Date
is or was a member of the same affiliated service group (within the meaning of
Section 414(m) of the Code) as either such Seller, any corporation described in
clause (i) or any partnership, trade or business described in clause (ii); and
(iv) any entity which at any time before the Closing Date is or was required to
be aggregated with such Seller under Section 414(o) of the Code.

                  "Escrow Agent" means The Bank of New York, or any other bank
reasonably acceptable to Sellers and Buyer.

                  "Expanded Basic Service" means the tier of cable television
service offered separately from Basic Cable Service and for a charge in addition
to that charged for Basic Cable Service, and that can only be purchased by
subscribers that also receive Basic Cable Service, but not including any a la
carte programming tier or other programming offered on a per channel or per
program basis.

                  "FAA" means the Federal Aviation Administration.

                  "FCC" means the Federal Communications Commission.

                  "Franchise" means all franchise agreements and similar
governing agreements, instruments and resolutions and franchise-related statutes
and ordinances that are necessary or required in order to operate any of the
Systems and to provide cable television services in any of the Systems.

                  "Franchise Area" means, with respect to any Franchise, the
geographic area in which a Seller is authorized to operate any of the Systems
pursuant to such Franchise.

                  "Franchise Extension" means the extension of the expiration
date for any Franchise that shall, by its terms, expire during the thirty-month
period subsequent to the Closing Date, such extension being on such terms and
conditions as shall be satisfactory to Buyer in its reasonably exercised
discretion.

                  "Franchise Renewal" means, for each Franchise that has expired
or shall expire prior to the Closing Date, the issuance of a new Franchise that
shall be on such terms and conditions as shall be satisfactory to Buyer in its
reasonably exercised discretion.

                  "GAAP" means generally accepted accounting principles as in
effect from time to time in the United States of America.

                  "General Partner" means each general partner of each of the
General Partnerships.

                                       4

<PAGE>   12

                  "General Partner Consents" means the written consents of the
General Partners that are necessary for the consummation of the transactions
contemplated by this Agreement by each of the General Partnerships in accordance
with the terms hereof, which shall be in form and substance satisfactory to such
General Partnership.

                  "General Partnership" means each of the Sellers that is
identified in the preamble hereto as a general partnership.

                  "Governmental Authority" means (i) the United States of
America or (ii) any state of the United States of America and any political
subdivision thereof, including counties, municipalities and the like.

                  "Governmental Authorizations" means, collectively, all
Franchises and other authorizations, agreements, Licenses and permits for and
with respect to the construction and operation of any of the Systems obtained
from any Governmental Authority.

                  "Group Subscriber Deficiency" means the amount by which the
Closing Date Subscriber Count for an Illinois System Group is less than the
Minimum Subscriber Number applicable to such Illinois System Group.

                  "Hazardous Substance" means any substance, hazardous material
or other substance or compound regulated under Environmental Laws, including,
without limitation, petroleum or any refined product or fraction or derivative
thereof.

                  "HSR Act" means the Hart-Scott-Rodino Antitrust Improvements
Act of 1976, as amended, and the rules and regulations thereunder, as in effect
from time to time.

                  "Illinois System" means each of the Systems serving the
communities of Flora, Mt. Carmel, Hillsboro, Macoupin, Shelbyville and
Taylorville, Illinois.

                  "Illinois System Group" means either the Southern Illinois
Seller Group or the Northern Illinois Seller Group, as set forth in Schedule
1.1A.

                  "Indemnity Escrow Agreement" means the Indemnity Escrow
Agreement or Agreements among Buyer, Sellers and the Escrow Agent, substantially
in the form of Exhibit B.

                  "Indemnity Fund" means the aggregate amount of $4,250,000,
being deposited by Buyer with the Escrow Agent pursuant to the Indemnity Escrow
Agreement(s) in accordance with Section 10.6 and the terms of the Indemnity
Escrow Agreement(s), to provide funds for the payment of any indemnification to
which any Buyer Indemnitee shall be entitled under Section 10 hereof.

                  "Knowledge of Seller" or "Seller's Knowledge" means the actual
knowledge of the chief financial officer of Enstar or, with respect to any
System, the general manager with respect to such System.

                  "Leases" means the Personal Property Leases and the Real
Property Leases.

                                       5

<PAGE>   13

                  "Legal Requirement" means any statute, ordinance, code, law,
rule, regulation, permit or permit condition, administrative or judicial decree,
order or other requirement, standard or procedure enacted, adopted or applied by
any Governmental Authority, including judicial decisions applying common law or
interpreting any other Legal Requirement.

                  "License" means any license, permit or other authorization
(other than a Franchise) issued by a Governmental Authority, including, but not
limited to, the FCC, used or useful in the operation of any of the Systems
(including but not limited to TV translator station licenses, microwave licenses
(including but not limited to Cable Television Relay Services "CARS") and TVRO
earth station registrations).

                  "Limited Partner" means each of the limited partners of each
Limited Partnership and each of the limited partners in each General Partner.

                  "Limited Partner Consents" means the written consents of the
Limited Partners of each Seller that is a Limited Partnership, or in the case of
a Seller that is a General Partnership, the General Partner thereof, that are
necessary for the consummation of the transactions contemplated by this
Agreement by such Seller in accordance with the terms hereof, which shall be in
form and substance satisfactory to such Seller.

                  "Limited Partnership" means each of the Sellers that is
identified in the preamble hereto as a limited partnership.

                  "Malden Franchise" means the Franchise(s) covering the
System(s) serving the community of Malden, Missouri.

                  "Management Agreement" means any of the Management Agreements
entered into between Buyer and one or more of the Sellers pursuant to Section
9.6, which shall be in form and substance reasonably satisfactory to Buyer and
the applicable Seller(s), with Buyer having broad management authority and the
applicable Seller(s) receiving no compensation thereunder.

                  "Material Adverse Effect" means a material adverse effect on
any of the business, financial condition, results of operations, assets or
liabilities of any Seller or the Systems, taken as a whole.

                  "Material Consents" means the Required Consents designated as
Material Consents in Schedule 4.3.

                  "Minimum Subscriber Number" means, with respect to a System,
the Minimum Subscriber Number with respect to such System set forth in Schedule
1.1A, and with respect to any of the Illinois Systems, the Minimum Subscriber
Number for the applicable Illinois System Group set forth in Schedule 1.1A.

                  "Multiemployer Plan" means a plan, as defined in Section 3(37)
or 4001(a)(3) of ERISA, to which any Seller or any trade or business that would
be considered a single employer

                                       6

<PAGE>   14

with such Seller under Section 4001(b)(1) of ERISA contributed, contributes or
is required to contribute.

                  "Outside Closing Date" means April 30, 2001.

                  "Past Practices" means the practices used since November 12,
1999, in the Systems and in any cable system directly or indirectly controlled
by Charter that is of comparable size to the Systems and is located in a
geographic area comparable to those in which the Systems are located.

                  "Permitted Encumbrances" means the following: (i) statutory
landlord's liens and liens for current taxes, assessments and governmental
charges not yet due and payable (or being contested in good faith); (ii) zoning
laws and ordinances and similar Legal Requirements; (iii) rights reserved to any
Governmental Authority to regulate the affected property; (iv) as to interests
in Real Property, any easements, rights-of-way, servitudes, permits,
restrictions and minor imperfections or irregularities in title that are
reflected in the public records and that do not individually or in the aggregate
materially interfere with the right or ability to own, use, lease or operate the
Real Property as presently utilized; and (v) Encumbrances set forth in Schedule
1.1B, provided that such Encumbrances set forth in Schedule 1.1B do not
individually or the in the aggregate materially interfere with Buyer's right to
own, use, lease or operate the Assets subject to such Encumbrances.

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

                  "Poplar Bluff System" means the cable television system
operated as of the date hereof by Enstar IV that serves the community of Poplar
Bluff, Missouri.

                  "Real Property" means all of the fee and leasehold estates
and, to the extent of the interest, title, and rights of Sellers in the
following: buildings and other improvements thereon, easements, licenses, rights
to access, rights-of-way and other real property interests that are owned or
held by Sellers and used or held for use in the business or operations of the
Systems, plus such additions thereto and less such deletions therefrom arising
between the date hereof and the Closing Date in accordance with this Agreement.

                  "Related Agreements" means all written agreements,
instruments, affidavits, certificates and other documents, other than this
Agreement, that are executed and delivered by Buyer or Sellers pursuant to this
Agreement or in connection with Buyer's purchase of the Assets or any other
transactions contemplated by this Agreement, regardless of whether such
agreements, instruments, affidavits, certificates and other documents are
expressly referred to in this Agreement.

                  "Release" means any release, spill, emission, leaking,
pumping, injection, deposit, disposal, discharge, dispersal, leaching or
migration into the indoor or outdoor environment or into or out of any Real
Property (owned, leased or used by easement), including the movement of

                                       7
<PAGE>   15

contaminants through or in the air, soil, surface water or groundwater above, in
or below any parcel of Real Property.

                  "Remedial Action" means any and all actions required to (i)
clean up, remove, treat or in any other way address contaminants in the indoor
or outdoor environment, (ii) prevent the Release or threat of Release or
minimize the further Release of contaminants so they do not migrate or endanger
public health or welfare of the indoor or outdoor environment or (iii) perform
pre-remedial studies and investigations and post-remedial monitoring and care.

                  "Required Consents" means any consent of any Governmental
Authority or other Person under any License, Franchise, Agreement or other
instrument which is necessary as a condition to the transfer or assignment of
any such License, Franchise, Agreement or other instrument or as a condition to
the consummation of the transaction contemplated by this Agreement and the
Related Agreements.

                  "SEC" means the United States Securities and Exchange
Commission.

                  "Settlement Agreement" means the Global Class Action
Settlement Agreement (and any other settlement agreement, as the case may be)
pursuant to the class action lawsuit titled Unfried, et al. v. Charter
Communications Holding Company, LLC, et al., Civil Action No. 99-L-48, Third
Judicial Circuit, Madison County, Illinois, and related litigation,
substantially in the form of the draft Global Class Action Settlement Agreement
with respect to such lawsuit dated July 28, 2000.

                  "Subscriber" means an active customer of one of the Systems
who subscribes for Basic Cable Service in a single household (excluding "second
connections", as such term is commonly understood in the cable television
industry, and any account duplication), commercial establishment or in a
multi-unit dwelling (including motels and hotels), and has paid the applicable
full non-discounted rate for at least one month's Basic Cable Service (including
deposit and installation charges consistent with the applicable Seller's
applicable past practice); provided, however, that the number of customers in a
multi-unit dwelling or commercial establishment that obtains service on a
"bulk-rate" basis shall be determined on a System-by-System basis by dividing
the gross bulk-rate revenue for Basic Cable Service and Expanded Basic Service
(but not revenues from tier or premium services, installation or converter
rental) attributable to such multi-unit dwelling or commercial establishment in
each System by the subscription rate for individual households within such
System for the higher level of Basic Cable Service and Expanded Basic Service
offered by such System. For purposes of this definition, an "active customer"
shall mean any customer: (i) who has not given or been given notice of
termination and who, consistent with the applicable Seller's policies, should
not have been given notice of termination; provided, that the number of
subscribers referred to in this clause (i) shall be net of the number of
prospective subscribers whose connection to a System is pending; (ii) who has
become a subscriber only pursuant to customary marketing promotions conducted in
the ordinary course of business consistent with Past Practices, excluding any
customers who became subscribers as a result of any such promotions conducted
within the preceding thirty (30) days; and (iii) whose account does not have an
outstanding balance (other

                                       8

<PAGE>   16

than an amount of $5.00 or less) more than 60 days past due (with an account
being past due one day after the first day of the period to which the applicable
billing relates).

                  "Subscriber Adjustment Amount" means, with respect to a
System, the Subscriber Adjustment Amount for such System, or, with respect to an
Illinois System, the Subscriber Adjustment Amount for the applicable Illinois
System Group, each as set forth in Schedule 1.1A.

                  "Subscriber Deficiency" means the number of Subscribers by
which the number of Subscribers served by a Seller, System or Illinois System
Group is less than the Minimum Subscriber Number applicable to such Seller,
System or Illinois System Group, as the case may be, as of the Closing Date.

                  "Systems" means the cable television systems listed in
Schedule 4.18.

                  "Taxes" or "Tax" means and includes, without limitation, all
net income, capital gains, gross income, gross receipt, property, franchise,
sales, use, excise, withholding and other taxes, assessments, levies, fees,
duties, tariffs and other charges of any kind imposed upon any Seller or any of
the Assets, as applicable, by federal, foreign, state or local law, together
with any interest and any penalties, or additions to tax and additional amounts,
validly imposed with respect to such taxes.

                  "Transferable Franchise Area" means any Franchise Area with
respect to which (A) any Required Consent necessary under a Franchise in
connection with the consummation of the transactions contemplated by this
Agreement shall have been obtained or shall have been deemed obtained by
operation of law in accordance with the provisions of the Cable Act, or (B) no
Required Consent is necessary under a Franchise in connection with the
consummation of the transactions contemplated by this Agreement.

                  "Voting Period" means the period during which the Limited
Partners of any Seller are entitled to vote to approve or disapprove the
transactions contemplated by this Agreement with respect to such Seller,
pursuant to Section 6.13.

                  "WARN Act" means the Worker Adjustment Retraining and
Notification Act.

         1.2      Other Definitions. The following terms are defined in the
Sections indicated:

<TABLE>
<CAPTION>

                                     Term                           Section
                                     ----                           -------
<S>                                                           <C>
                   Adjusted Purchase Price                          3.1
                   Agreements                                       4.9(a)(iv)
                   Acquisition Proposal                             6.14
                   Assets                                           2.1(a)
                   Assumed Liabilities                              2.2
                   Bill of Sale and Assignment
                      and Assumption Agreements                     3.4
                   Breakup Fee                                      11.2(a)
                   Broker                                           4.19
                   Buyer                                            Preamble
</TABLE>

                                       9

<PAGE>   17

<TABLE>
<CAPTION>

                                   Term                           Section
                                   ----                           -------
<S>                                                             <C>
                   Buyer Acquisition Proposal                       11.2(a)
                   Closing                                          3.2
                   Closing Date                                     3.2
                   Confidential Information                         6.2(b)
                   Copyright Act                                    4.11(b)
                   Discounted Franchise Purchase Price              9.5
                   Environmental Defects                            6.12(c)
                   Environmental Reports                            6.12(a)(i)
                   Excluded Assets                                  2.1(b)
                   Final Closing                                    9.4
                   Financial Statements                             4.4
                   Franchise Purchase Price                         9.5
                   Headend Services Agreement                       6.l6(a)
                   Indemnitee                                       10.4
                   Indemnitor                                       10.4
                   Indemnity Period                                 10.1
                   Interest                                         6.14
                   Microwave Services Agreement                     6.16(b)
                   Personal Property Leases                         4.7(b)
                   Pole Attachment Agreements                       4.10
                   Post-Closing Certificate                         3.3(b)
                   Pre-Closing Certificate                          3.3(a)
                   Purchase Price                                   3.1
                   Real Estate Inspection Period                    6.12(a)(i)
                   Real Property Leases                             4.6(b)
                   Retained Assets                                  9.1
                   Retained Franchise                               9.1
                   Retained Franchise Consent                       9.2
                   Seller                                           Preamble
                   Sellers' Health Plans                            6.6(b)
                   Subsequent Closing                               9.3
                   Surveys                                          6.12(a)(i)
                   Systems Plans                                    4.14(a)
                   Title Commitments                                6.12(a)(i)
                   Title Company                                    6.12(a)(i)
                   Title Defect                                     6.12(b)
                   Transferred Employee                             6.6(a)
</TABLE>

2.       Sale of Assets; Assumption of Certain Liabilities.

         2.1      Sales of Assets.

                  (a) Subject to the terms, provisions and conditions contained
in this Agreement, and on the basis of the representations and warranties herein
set forth, on the Closing Date, each Seller agrees to sell, assign, transfer,
convey and deliver to Buyer, and Buyer agrees

                                       10

<PAGE>   18

to purchase and acquire from each Seller, all right, title and interest of such
Seller in the Assets (as defined herein), free and clear of all Encumbrances
other than Permitted Encumbrances. The "Assets" shall mean all of the assets
(tangible and intangible, real and personal), owned, leased or otherwise held by
such Seller and used or usable in connection with the operation of the Systems;
provided, that the Assets shall not include any of the "Excluded Assets," as
defined in Section 2.1(b). Except as expressly set forth in this Agreement, the
Assets will be conveyed to Buyer on an "AS IS, WHERE IS" basis without
representations or warranties of any kind or manner whatsoever. The Assets shall
include, without limitation, the following:

                  (i)   all of Sellers' rights under the Agreements, Franchises,
Licenses and other Governmental Authorizations and any other instruments
relating to operation of the Systems, and all intangibles relating to operation
of the Systems, including, but not limited to, all claims and goodwill, if any,
with respect to the operation of the Systems;

                  (ii)  all tangible personalty, electronic devices, trunk and
distribution cable, amplifiers, power supplies, conduit, vaults and pedestals,
grounding and pole hardware, subscriber devices (including, without limitation,
converters, traps, decoders, switches, and fittings), "headend" (origination,
signal processing and transmission) equipment, facilities, vehicles,
inventories, supplies and other personal property used or usable in the
operation of the Systems;

                  (iii) all realty, towers, fixtures, leasehold and other
interests in Real Property;

                  (iv)  all accounts receivable of Sellers relating to their
operation of the Systems; and

                  (v)   all business, operational, maintenance, tax and
financial (relating primarily to the Systems or the Assets) and engineering
records, files, data, drawings, blueprints, schematics and maps, if any, of the
Systems and reports and records concerning suppliers, customers, subscribers and
others customary to the management and operation of the Systems.

         (b)      Notwithstanding the foregoing, the Assets shall not include,
and Buyer shall not acquire any interest in or to, any of the following (the
"Excluded Assets"):

                  (i)   programming and retransmission consent agreements of
Sellers other than those listed on Schedule 2.1(b)(i);

                  (ii)  insurance policies of Sellers and rights and claims
thereunder;

                  (iii) bonds, letters of credit, surety instruments and other
similar items and any stocks, bonds, certificates of deposit and similar
investments of Sellers;

                  (iv)  cash and cash equivalents and notes receivable of
Sellers;

                  (v)   Sellers' trademarks, trade names, service marks, service
names, logos and similar proprietary rights, subject to Section 6.8;

                                       11

<PAGE>   19

                  (vi)   Sellers' minute books and other books and records
related to internal matters and financial relationships with Sellers' lenders
and affiliates;

                  (vii)  all Employee Plans, Multiemployer Plans and
Compensation Arrangements;

                  (viii) the assets and properties set forth in Schedule
2.1(b)(viii); and

                  (ix)   installment sale agreements and other agreements under
which Buyer would be obligated to pay the deferred purchase price of property,
except any such agreements that are listed in Schedule 4.9 hereto and except any
such agreements permitted to be entered into by Sellers pursuant to Section
6.1(b)(viii).

         2.2 Assumed Liabilities. Subject to the terms, provisions and
conditions contained in this Agreement, and on the basis of the representations
and warranties herein set forth on the Closing Date, Buyer agrees to pay,
discharge and perform the following to the extent related to the Assets received
by Buyer (the "Assumed Liabilities"):

                  (i)   liabilities and obligations under any Agreements,
Governmental Authorizations, Licenses and other instruments included within the
Assets and accruing and relating to the period from and after the Closing Date;

                  (ii)  liabilities and obligations of Sellers to the extent
there is a reduction in the Purchase Price pursuant to Section 3.3(a)(ii) with
respect thereto; and

                  (iii) liabilities and obligations arising out of Buyer's
ownership or operation of the Systems from and after the Closing Date, except to
the extent that any such liability or obligation relates to any of the Excluded
Assets.

All other obligations and liabilities of Sellers, including (a) obligations with
respect to the Excluded Assets, (b) any obligations under the Agreements assumed
by Buyer relating to the time period prior to or on the Closing Date and (c) any
claims or pending litigation or proceedings relating to the operation of the
Systems prior to or on the Closing Date shall remain the obligations and
liabilities of Sellers.

3.       Closing.

         3.1 Purchase Price. The aggregate purchase price payable for the Assets
shall be Ninety-Four Million Nine Hundred Twenty-Nine Thousand Four Hundred
Dollars ($94,929,400), subject to Sections 9.1, 9.5 and 11.1(g), and as adjusted
at the Closing pursuant to Section 3.3(a) (the "Purchase Price"), and as further
adjusted post-Closing pursuant to Section 3.3(b) and, if applicable, Section 3.6
and, if applicable, Section 3.6 (as so adjusted, the "Adjusted Purchase Price").
The Purchase Price shall be allocated among the Sellers as set forth in Schedule
1.1A.

         3.2 Manner and Time of Closing and Payment. The closing of the
transactions contemplated herein (the "Closing") shall take place at 9:00 a.m.
at the offices of Baer Marks &

                                       12

<PAGE>   20

Upham LLP, 805 Third Avenue, New York, New York 10022, or at such other time and
location mutually determined by Sellers and Buyer, on the last Business Day of
the calendar month that is at least five (5) Business Days after the
satisfaction or waiver of all conditions set forth in Sections 7.3, 7.4, 7.9,
8.3, 8.4 and 8.6 hereof, but, subject to Section 11.1(b) hereof, no later than
the Outside Closing Date (such date on which the Closing actually occurs, the
"Closing Date"). At Closing, (a) Buyer shall deliver to Sellers, the Purchase
Price, less (i) the amount of the Deposit Amount and all interest and other
earnings accrued thereon and (ii) the amount of the Indemnity Fund, in
immediately available funds by wire, inter-bank or intra-bank transfer to
Sellers in accordance with Sellers' written instructions, to be delivered to
Buyer at least three (3) Business Days prior to Closing; (b) Buyer and Sellers
shall cause the Escrow Agent to deliver to Sellers the Deposit Amount and all
interest and other earnings accrued thereon, in accordance with the terms of the
Deposit Escrow Agreement, which amount shall be credited against the Purchase
Price payable to each Seller on a pro rata basis based on the allocation of the
aggregate Purchase Price among Sellers; and (c) Buyer shall deliver the
Indemnity Fund to the Escrow Agent, in accordance with the terms of the
Indemnity Escrow Agreement and the Escrow Agent's instructions.

         3.3      Adjustment of Purchase Price.

                  (a)      The Purchase Price payable to each Seller shall be
subject to adjustment, as of 11:59 p.m. (New York City time) on the Closing
Date, to reflect, in accordance with GAAP, the principle that all revenues and
refunds, and all costs, expenses and liabilities, attributable to the operation
of such Seller's Systems for any period prior to such time on the Closing Date
are for the account of the applicable Seller, and all revenues and refunds, and
all costs, expenses and liabilities (other than liabilities and obligations
under contracts or other obligations of such Seller that Buyer does not assume)
attributable to the operation of such Seller's Systems from and after such time
on the Closing Date are for the account of Buyer. The adjustments to be made to
the Purchase Price payable to each Seller pursuant to this Section 3.3(a) shall
consist of the following:

                           (i)   an increase in the Purchase Price by an amount
equal to the sum of:

                                 (A) all prepaid items relating to the ownership
or operation of the Assets or the Systems and for which Buyer will receive a
benefit after the Closing, which prepaid items shall be prorated between the
applicable Seller and Buyer as of the Closing Date on the basis of the period
covered by the respective prepayment, and shall be deemed to include, without
limitation, all such prepaid items attributable to: real and personal property
taxes and assessments levied against the Assets; real and personal property
rentals; pole rentals; and power and utility charges;

                                 (B) the amount of the Accounts Receivable with
respect to such Seller; and

                                 (C) solely with respect to Enstar II-2, if as
of the Closing Date Buyer or an Affiliate of Buyer shall have acquired the
Poplar Bluff System, the amount of

                                       13

<PAGE>   21

the product of (I) $300 and (II) the number of Subscribers covered by the Malden
Franchise as of the Closing Date; and

                                 (D) solely with respect to Enstar IV, if as of
the Closing Date Buyer or an Affiliate of Buyer shall have acquired the Poplar
Bluff System, the amount of the product of (I) $500 and (II) the number of
Subscribers covered by the Dexter Franchise as of the Closing Date; and

                           (ii)  a decrease in the Purchase Price by an amount
equal to the sum of:

                                 (A) the amount of all subscriber prepayments,
credit balances and deposits held by Seller as of the Closing Date with respect
to such Seller's Systems;

                                 (B) all accrued and unpaid expenses relating to
the ownership or operation of such Seller's Assets and Systems, including
accrued and unpaid franchise fees (which accrued and unpaid expenses shall be
prorated between such Seller and Buyer as of the Closing Date on the basis of
the period to which the respective expense relates, and shall be deemed to
include, without limitation, accrued and unpaid expenses of the kind itemized in
Section 3.3(a)(i)(A) above);

                                 (C) in the event that the Closing Date
Subscriber Count (excluding Subscribers served by Illinois Systems) for any of
such Seller's Systems (other than Illinois Systems) is less than the Minimum
Subscriber Number for such System, the product of (I) the Subscriber Adjustment
Amount with respect to such System and (II) the Subscriber Deficiency with
respect to such System;

                                 (D) in the event that the Closing Date
Subscriber Count for any Illinois System Group is less than the Minimum
Subscriber Number for such Illinois System Group, an allocated portion of the
product of (I) the Group Subscriber Deficiency and (II) the Subscriber
Adjustment Amount for such Illinois System Group; which portion shall be
determined by allocating said product among the Sellers within such Illinois
System Group whose Closing Date Subscriber Counts are less than the respective
Minimum Subscriber Numbers for such Sellers, on the basis of the proportion of
each such Seller's respective Subscriber Deficiency to the sum of the Subscriber
Deficiencies for all such Sellers;

                                 (E) with respect to Transferred Employees,
accrued obligations for vacation and sick days, subject to Section 6.6(c);

                                 (F) any amounts by which the Purchase Price is
decreased pursuant to Section 6.12(a), (b) or (c); and

                                 (G) any amounts by which the Purchase Price is
decreased pursuant to Section 6.17.

Sellers shall deliver to Buyer, not less than seven (7) Business Days prior to
the Closing Date, a certificate signed by Sellers (the "Pre-Closing
Certificate"), which shall specify each Seller's good faith best estimate of the
adjustments to the Purchase Price payable to such Seller required

                                       14

<PAGE>   22

under this Section 3.3(a) above, calculated as of the Closing Date and prepared
consistent with GAAP. The Pre-Closing Certificate shall be accompanied by
reasonably detailed documentation supporting the calculations set forth therein.
Buyer shall have the right to challenge the content of the Pre-Closing
Certificate within four (4) Business Days of delivery if Buyer believes, in good
faith, that it is in error. Buyer and the applicable Seller shall use good faith
efforts to resolve any disputes with respect to the Pre-Closing Certificate(s)
prior to the Closing Date. If any such dispute is not resolved prior to the
Closing, the amount of the Purchase Price paid to the applicable Seller(s) at
Closing shall be based on the adjustments to the Purchase Price for such
Seller(s) set forth in the Pre-Closing Certificate.

                  (b) Within 120 days after the Closing Date, Buyer shall
deliver to Sellers a certificate signed by Buyer (the "Post-Closing
Certificate"), which shall set forth Buyer's final adjustments to the Purchase
Price payable to each Seller to be made as of the Closing Date pursuant to
Section 3.3(a) above and Section 6.17, together with such documentation as may
be necessary to support Buyer's determination thereof; and, thereafter, Buyer
shall provide each Seller with such other documentation relating to the
Post-Closing Certificate as such Seller may reasonably request. If a Seller
wishes to dispute the final adjustments to the Purchase Price to be made as of
the Closing Date pursuant to Section 3.3(a) above, as reflected in the
Post-Closing Certificate, such Seller shall, within thirty (30) days after its
receipt of the Post-Closing Certificate, serve Buyer with a written description
of the disputed items together with such documentation as Buyer may reasonably
request. If any Seller notifies Buyer of its acceptance of the amounts set forth
in the Post-Closing Certificate, or if a Seller fails to deliver its report of
any proposed adjustments within the thirty (30)-day period specified in the
preceding sentence, the amounts set forth in the Post-Closing Certificate for
such Seller shall be conclusive, final and binding on Buyer and such Seller as
of the last day of such thirty (30)-day period. If Buyer and any Seller cannot
resolve any dispute within thirty (30) days after Buyer's receipt of such
Seller's written objection, Buyer and such Seller, shall, within the ten (10)
days following expiration of such thirty (30)-day period, appoint KPMG or such
other independent public accounting firm of national reputation as is agreed
upon by the parties to resolve the dispute, provided such firm is not the
auditor for either Buyer or the applicable Seller. The cost of retaining such
firm shall be borne one-half by Buyer and one-half by such Seller. Such firm
shall report its determination in writing to Buyer and the applicable Seller,
and such determination shall be conclusive and binding on Buyer and the
applicable Seller and shall not be subject to further dispute or review.

                  (c) If, as a result of any resolution reached by Buyer and any
Seller, or any determination made by an accounting firm, in either case pursuant
to Section 3.3(b), Buyer is finally determined to owe any amount to any Seller,
or any Seller is finally determined to owe any amount to Buyer, the obligor
shall pay such amount to the other party hereto within three (3) Business Days
of such determination. Notwithstanding the foregoing, Buyer shall pay to the
applicable Seller or such Seller shall pay to Buyer, as the case may be, the
amount due such other party with respect to any item that is not in dispute
within three (3) Business Days of the date on which a dispute no longer exists
in immediately available funds to an account or accounts specified in writing by
the obligee. Sellers acknowledge and agree that any amount determined to be
payable to Buyer by any Seller pursuant to Section 3.3(b) shall be paid by such
Seller and shall not be limited by nor disbursed from the Indemnity Fund.

                                       15

<PAGE>   23

         3.4      Instrument of Assignment and Assumption. At the Closing, Buyer
and each Seller will execute and deliver a Bill of Sale and Assignment and
Assumption Agreement, in the form of Exhibit C (the "Bill of Sale and Assignment
and Assumption Agreements").

         3.5      Deposit Escrow Agreement. Not more than fifteen (15) Business
Days following the execution hereof, Buyer and Sellers shall execute and deliver
the Deposit Escrow Agreement, and Buyer shall deposit the Deposit Amount with
the Escrow Agent in accordance with the terms thereof. In the event that Buyer
shall not have delivered the Deposit Amount to the Escrow Agent within said
fifteen (15)-day period, Sellers shall be entitled to terminate this Agreement
pursuant to Section 11.1(h) by giving Buyer five (5) Business Days' written
notice of Sellers' intention to terminate; provided, that during such five (5)
Business Day period Buyer shall be entitled to deliver the Deposit Amount to the
Escrow Agent and execute and deliver the Deposit Escrow Agreement, in which case
this Agreement shall not be terminated.

         3.6      Post-Closing Adjustment of Enstar II-2 and Enstar IV Purchase
Price. Notwithstanding any adjustments to the Purchase Price made pursuant to
Section 3.3(b) hereof, the Purchase Price payable to each of Enstar II-2 and
Enstar IV shall be subject to further increase, in accordance with this Section
3.6, in the event that Buyer or an Affiliate of Buyer enters into an agreement
with Enstar IV to acquire the Poplar Bluff System within twelve (12) months
following the date hereof, and such acquisition is subsequently consummated.
Concurrent with the closing on such acquisition, Buyer shall pay (a) to Enstar
II-2, the amount of the product of (i) $300 and (ii) the number of Subscribers
covered by the Malden Franchise as of the Closing Date (as set forth in the
Pre-Closing Certificate or as otherwise determined pursuant to Section 3.3(a) or
(b)); and (b) to Enstar IV, the amount of the product of (x) $500 and (y) the
number of Subscribers covered by the Dexter Franchise as of the Closing Date (as
set forth in the Pre-Closing Certificate or as otherwise determined pursuant to
Section 3.3(a) or (b)); each of the foregoing payments to be made in immediately
available funds by wire, inter-bank or intrabank transfer in accordance with
Enstar II-2's or Enstar IV's respective written instructions.

         3.7      Purchase Price Allocation. Buyer and each Seller will use good
faith efforts to agree on the allocation, for tax reporting purposes, of the
Purchase Price payable to such Seller among the Assets being conveyed by such
Seller. As soon as practicable following the date hereof, Buyer shall deliver to
each Seller a proposed allocation with respect to such Seller. Buyer and Sellers
shall file the form required to be filed under Section 1060 of the Code
consistent with such allocation.

4.       Representations And Warranties Of Sellers.

         Each Seller hereby represents and warrants to Buyer that the following
statements are true and correct, solely with respect to itself and the Assets
and Systems being conveyed by it pursuant to this Agreement.

         4.1      Organization, Qualification and Power.

                  (a) Seller is a limited partnership or general partnership (as
indicated in the preamble hereto) duly organized, validly existing and in good
standing under the laws of the

                                       16

<PAGE>   24

State of Georgia, with full power and authority to own, lease or license its
properties and assets and to carry on the business in which it is engaged in the
manner in which such business is now carried on.

                  (b) Enstar is a corporation, duly incorporated, validly
existing and in good standing under the laws of the State of Georgia, with full
power and authority to carry on the business in which it is engaged in the
manner in which such business is now carried on. Enstar is the sole general
partner of each Limited Partnership and of each of the General Partners.

         4.2      Capacity; Due Authorization; Enforceability. Subject to
obtaining the Limited Partner Consents and the General Partner Consents, all
requisite limited partnership or general partnership action, as the case may be,
required to be taken by Seller for the execution, delivery and performance by
Seller of this Agreement and all Related Agreements to which it is a party have
been duly taken. Seller has the full legal capacity and legal right, power and
authority to enter into this Agreement and the Related Agreements and to
consummate the transactions contemplated hereby and thereby. Enstar has the full
legal capacity and legal right, power and authority to execute this Agreement
and any of the Related Agreements to which Seller is a party on behalf of Seller
or, if Seller is a General Partnership, on behalf of each General Partner
thereof. Subject to obtaining the Limited Partner Consents and the General
Partner Consents, this Agreement has been duly executed and delivered by Seller,
and this Agreement and each of the Related Agreements to which Seller is a
party, upon execution and delivery, will be a legal, valid and binding
obligation of Seller, enforceable in accordance with its respective terms,
except in each case to the extent that such enforcement may be subject to
applicable bankruptcy, reorganization, insolvency, moratorium or similar laws of
general application affecting the rights and remedies of creditors or secured
parties, and that the availability of equitable remedies including specific
performance and injunctive relief may be subject to equitable defenses and the
discretion of the court before which any proceeding therefor may be brought.

         4.3      Absence of Conflicting Agreements.

                  (a) The execution and delivery of this Agreement and the
Related Agreements to which Seller is a party and the consummation of the
transactions contemplated hereby and thereby (provided that all of the Required
Consents and the Limited Partner Consents and General Partner Consents are
obtained and the applicable waiting period(s) under the HSR Act shall have
expired or been terminated) will not (a) violate (i) Seller's certificate of
formation or limited partnership agreement, if Seller is a Limited Partnership,
or (ii) Seller's general partnership agreement, if Seller is a General
Partnership; (b) violate any Legal Requirement applicable to Seller, the Assets
or the Systems; (c) conflict with or result in any breach of or default under
any contract, note, mortgage or agreement to which Seller is a party or by which
Seller is bound.

                  (b) Except for the Required Consents listed in Schedule 4.3,
the Limited Partner Consents and the General Partner Consents and the expiration
or termination of the applicable waiting period(s) under the HSR Act, no
approval, consent, authorization or act of or any declaration, filing,
application, registration or other action with any Person or any foreign,
federal, state or local court or Governmental Authority is necessary for the
consummation of the

                                       17

<PAGE>   25

transactions contemplated in this Agreement and the Related Agreements in
accordance with the terms hereof and thereof.

         4.4      Financial Statements; Absence of Undisclosed Liabilities;
Accounts Receivable. Seller has delivered to Buyer true and correct copies of
the financial statements identified in Schedule 4.4 (collectively, the
"Financial Statements"). The Financial Statements are in accordance with the
books and records of Seller and have been prepared in accordance with GAAP. The
Financial Statements present fairly the financial condition and results of
operations of Seller at the respective dates thereof and throughout the
respective periods covered thereby subject, in the case of unaudited financial
statements, to normal year-end accruals and audit adjustments and to the absence
of footnotes thereto.

         4.5      Absence of Certain Changes. Since December 31, 1999, Seller
has operated the Systems in the ordinary course of business and has not:

                  (a) made any sale, assignment, lease or other transfer of
assets used or usable in connection with the Systems other than in the ordinary
course of business (unless such assets were unnecessary or obsolete);

                  (b) made or promised any material increase in the salary or
other compensation payable or to become payable to any Employee of Seller other
than in the ordinary course of business or as contemplated under any employment
arrangement currently in effect; or

                  (c) experienced any occurrence or been involved in any
transaction which, individually or in the aggregate, could reasonably be
expected to have a Material Adverse Effect.

         4.6      Real Property; Leases; Condemnation.

                  (a) Schedule 4.6(a) contains a list of the parcels of Real
Property owned by Seller and included within the Assets. Seller has good title
to each such parcel of Real Property and all buildings, structures and other
improvements thereon, in each case free and clear of all Encumbrances other than
Permitted Encumbrances.

                  (b) Schedule 4.6(b) contains a list of the leases under which
Seller is lessee of any Real Property owned by any third party ("Real Property
Leases"). Copies of all written Real Property Leases listed in Schedule 4.6(b)
have been delivered to Buyer. Such Real Property Leases are in full force and
effect.

         4.7      Personal Property.

                  (a) Seller owns and has good title to all of the tangible
personal properties and intangible properties included within the Assets.

                  (b) Schedule 4.7(b) contains a list, as of the date hereof, of
each lease or other agreement or right, under which Seller is lessee of, or
holds or operates, any machinery, equipment, vehicle or other tangible personal
property owned by a third party ("Personal

                                       18

<PAGE>   26

Property Leases") other than any such Personal Property Lease involving,
individually, payments of $25,000 or less or that is terminable on sixty (60)
days' notice or less.

         4.8      Governmental Authorizations.

                  (a) Identified in Schedule 4.8 are all of the Governmental
Authorizations held by Seller and issued in connection with the Systems or the
operation thereof or held by Seller or issued by any Governmental Authority with
respect to the Systems authorizing Seller to install, construct, own or operate
a cable television system within the jurisdiction of the issuing body or
authority thereof. Except as set forth in Schedule 4.8A, copies of all the
Governmental Authorizations listed in Schedule 4.8 have been delivered to Buyer.
Except as set forth in Schedule 4.8 or as may otherwise be disclosed pursuant to
Section 4.8(b), each such Governmental Authorization is in full force and
effect. To Seller's Knowledge, a written request for renewal has been timely
filed pursuant to Section 626(a) of the Cable Act with the proper Governmental
Authority with respect to any Franchise expiring within thirty (30) months after
the date of this representation.

                  (b) Not more than thirty (30) days following the date of this
Agreement, each Seller shall have delivered to Buyer a true and complete
description of any material noncompliance with the terms of, or material default
under, any Governmental Authorization by such Seller of which such Seller has
Knowledge as of the date of such delivery.

                  (c) On the Closing Date, Seller shall be in compliance in all
material respects with the terms of all Governmental Authorizations to which it
is a party or by which it is bound or affected, and there shall be no material
uncured defaults thereunder; provided, that the foregoing representation and
warranty shall not apply to any Governmental Authorization with respect to which
a Franchise Renewal or Franchise Extension shall have been obtained.

         4.9      Agreements.

                  (a) Except as set forth in Schedule 4.9, as of the date as of
this Agreement, with respect to the Assets or operation of the Systems, Seller
is not a party to or bound by:

                      (i)   any contract for the purchase, sale or lease of real
property or any option to purchase or sell real property;

                      (ii)  any installment sale agreement or liability for the
deferred purchase price of property with respect to any of the Assets involving
payments exceeding $25,000 individually;

                      (iii) any multiple dwelling unit agreement (covering fifty
(50) or more units), written agreement with subscribers for cable television
service or written hotel and motel agreement, except for such agreements as have
been entered into in the ordinary course of business; or

                      (iv)  any other contract, agreement, commitment,
understanding or instrument, including any retransmission consent agreement,
that is material to Seller, the

                                       19

<PAGE>   27

Systems or the Assets, other than those instruments referred to in Sections
4.6(b), 4.7(b) and 4.10 and other than agreements and instruments involving
payments, individually, of $25,000 or less or that are terminable on sixty (60)
days' notice or less (collectively, with such other agreements described in
clauses (a)(i) through (iii), and the Pole Attachment Agreements and other
agreements and instruments referred to in Sections 4.6(b), 4.7(b) and 4.10, as
well as such Agreements as are not required to be listed in any Schedule hereto,
the "Agreements"). Except as set forth in Schedule 4.8A, Seller has delivered to
Buyer copies of all Agreements that are identified in Schedule 4.9. All of the
Agreements are in full force and effect.

                  (b) Seller is in compliance in all material respects with the
terms of all Agreements to which it is a party or by which it is bound or
affected, and there are no material uncured defaults thereunder.

         4.10     Pole Attachment Agreements; Related Agreements. Schedule 4.10
contains a list, as of the date hereof, of all contracts, agreements and
understandings (other than the Governmental Authorizations listed in Schedule
4.8 and the Agreements described in Section 4.9) with respect to the Assets or
Systems to which Seller is a party or by which it is bound relating to: (i) the
use of any public utility facilities including, without limitation, all pole
line, joint pole or master contracts for pole attachment rights and the use of
conduits (herein called "Pole Attachment Agreements"), (ii) the use of any
microwave or satellite transmission facilities or (iii) the sale of cablecast
time to third parties for advertising or other purposes. Except as set forth in
Schedule 4.8A, Seller has delivered to Buyer copies of all Pole Attachment
Agreements and other agreements and instruments referred to in Schedule 4.10.

         4.11     Retransmission Consent and Must-Carry; Rate Regulation;
Copyright Compliance.

                  (a) Set forth in Schedule 4.11 is a list of the stations
within the Systems that have elected "must-carry" or retransmission consent
status pursuant to the Cable Act. Seller has delivered to Buyer copies of all
retransmission consent agreements and copies of all must-carry election notices
that are in Seller's possession. To Seller's Knowledge, each station carried by
any of the Systems is carried pursuant to a retransmission consent agreement,
"must-carry" election or other programming agreement.

                  (b) Seller has filed with the Copyright Office all required
statements of account with respect to the Systems that were required to have
been filed since July 1, 1999 in accordance with the Copyright Act of 1976 and
regulations promulgated pursuant thereto (collectively referred to herein as the
"Copyright Act"), and Seller has paid all royalty fees payable with respect to
the Systems since July 1, 1999. Seller has delivered to Buyer copies of all
Statements of Account referred to in this Section 4.11(b).

                  (c) Seller has not, since November 12, 1999, received any
written notice that, and Seller has no Knowledge that since January 1, 1999, it
or any of the Systems operated by it: (i) is not or has not been in compliance
in all material respects with the Communications Act and all applicable rules of
the FCC, except for such compliance which would not be reasonably expected to
have a Material Adverse Effect; or (ii) has not made all material filings
required to

                                       20

<PAGE>   28

be made by it with the FCC in connection with the Systems or provided all
material notices to customers of the Systems required under the Communications
Act and the FCC's rules and regulations, other than such filings and notices,
the failure of which to be made or provided would not be reasonably expected to
have a Material Adverse Effect. Schedule 4.11 sets forth the cable television
service rates charged in each of the Systems. Seller has not, since November 12,
1999, received any notice that any of such rates are not permitted rates under
the rules and regulations of the FCC. Schedule 4.11 also sets forth a list, as
of the date hereof, of all pending rate complaints on file at the FCC with
respect to the Systems.

         4.12     Litigation. Except as set forth in Schedule 4.12, and except
as may be disclosed pursuant to Section 4.8(b), there is no claim, legal action,
arbitration or other legal, governmental, administrative or tax proceeding or
any order, complaint, decree or judgment pending, or to Seller's Knowledge
threatened, against or relating to Seller or the Systems other than (i) FCC and
other proceedings generally affecting the cable television industry and not
specific to Seller; and (ii) routine collection actions with respect to the
payment by subscribers for services rendered by Seller and other proceedings and
actions arising in the ordinary course of business that are covered by Seller's
insurance policies.

         4.13     Compliance with Laws. Except as may be disclosed pursuant to
Section 4.8(b), Seller has not, since November 12, 1999, received any notice of
any claim by any Governmental Authority, and Seller has no Knowledge that Seller
has not been or is not in compliance with any Legal Requirement applicable to
it, the Systems or the Assets.

         4.14     Employee Benefit Plans.

                  (a) All Employee Plans and Compensation Arrangements providing
benefits to Employees or Employees of the Systems whose employment terminated
since November 12, 1999 ("Systems Plans") are listed in Schedule 4.14(a). Except
as disclosed in Schedule 4.14(a), there is no new Employee Plan or Compensation
Arrangement or any amendment to an existing Employee Plan or Compensation
Arrangement that will affect the benefits of Employees or former Employees of
the Systems and that is to become effective after the date of this Agreement.

                  (b) Each Employee Plan and Compensation Arrangement has been
established, maintained, operated and administered in accordance with its own
terms and, where applicable, ERISA, the Code, and any other applicable Legal
Requirement.

                  (c) To Seller's Knowledge no lien has arisen under Section 412
of the Code or Section 302 of ERISA in favor of any Employee Plan.

         4.15     Labor Relations; Employees.

                  (a) Seller is not a party to any collective bargaining
agreement or other contract with any labor organization regarding any of the
Employees of the Systems; Seller has not recognized any union or other
collective bargaining representative of any group of

                                       21

<PAGE>   29

Employees of the Systems; and no union or other collective bargaining
representative has been certified as representing any of the Employees of the
Systems;

                  (b) there currently is no (i) unfair labor practice charge or
complaint against Seller involving any Employee of the Systems pending before
the National Labor Relations Board, any state labor relations board or any court
or tribunal, (ii) grievance or other claim involving any Employee of the Systems
pending before any Governmental Authority against Seller, or (iii) arbitration
proceeding arising out of or under any collective bargaining agreement pending
before any Governmental Authority against Seller involving any Employee of the
Systems;

                  (c) Except with respect to ongoing disputes of a routine
nature or involving immaterial amounts, Seller has paid in full to all of its
Employees providing services to the Systems all wages, salaries, commissions,
bonuses, benefits and other compensation due and payable to such Employees.

         4.16     Environmental Matters. Except for any such noncompliance of an
insubstantial nature that has been remedied as required by applicable
Environmental Laws: (a) Seller's operations with respect to the Systems have
complied and comply in all material respects with all applicable Environmental
Laws; (b) Seller has not used the Real Property for the manufacture,
transportation, treatment, storage or disposal of Hazardous Substances except
for gasoline and diesel fuel and such use of Hazardous Substances (in cleaning
fluids, solvents and other similar substances) customary in the construction,
maintenance and operation of a cable television system and in amounts or under
circumstances that would not reasonably be expected to give rise to material
liability for Remedial Action, and (c) to Seller's Knowledge, the Real Property
complies and has complied in all material respects with all applicable
Environmental Laws. Except as set forth in Schedule 4.16, to Seller's Knowledge,
no underground storage tank is located under any of the Real Property, and to
Seller's Knowledge, none of the Real Property has been used as a gasoline
service station or any other facility for storing, pumping, dispensing or
producing gasoline or any other petroleum products or wastes. Seller has
delivered to Buyer copies of all assessments, studies, reports and surveys
relating to the environmental condition of the Real Property, including but not
limited to the presence or alleged presence of Hazardous Substances at or on the
Real Property, that are in the possession or under the control of Seller. To
Seller's Knowledge, no ambient asbestos is present at the Real Property.

         4.17     Bonds; Letters of Credit. Schedule 4.17 sets forth a list of
all franchise, construction, fidelity, performance and other bonds, guaranties
in lieu of bonds and letters of credit posted by Seller in connection with its
operation of any of the Systems.

         4.18     Information on the Systems and Subscribers.

                  (a) Schedule 4.18 sets forth a list, as of the date set forth
in said Schedule, of the Systems that are owned and operated by Seller and for
each System a materially accurate statement of the following information:

                      (i)   the total number of Subscribers served by such
System;

                                       22

<PAGE>   30

                      (ii)  the bandwidth capacity of the System specified in
MHz; and

                      (iii) the channel line-up and rate card for such System.

                  (b) Seller has made available to Buyer all existing system
engineering drawings and "as built" maps with respect to the Systems that are in
the possession of Seller and that have been requested by Buyer or its
representatives for review.

         4.19     Broker; Brokers' Fees. Except for Daniel & Associates, Inc.,
which has been retained by and whose fee shall be paid by Sellers, neither
Seller nor any Person acting on its behalf has dealt with any broker or finder
in connection with the transactions contemplated by this Agreement or incurred
any liability for any finders' or brokers' fees or commissions in connection
with the transactions contemplated by this Agreement. Sellers agree to indemnify
and hold harmless Buyer against any fee, commission, loss or expense arising out
of any claim by any other broker or finder employed or alleged to have been
employed by them.

5.       Representations And Warranties of Buyer.

         Buyer represents and warrants to Sellers that the following statements
are true and correct:

         5.1      Organization, Qualification and Power. Buyer is a corporation
duly incorporated, validly existing and in good standing under the laws of the
State of Pennsylvania, with full power and authority to own, lease or license
its properties and assets and to carry on the business in which it is engaged in
the manner in which such business is now carried on. On the Closing Date, Buyer
will be duly qualified to do business in all jurisdictions where the ownership
and operation of the Assets and Systems requires such qualification.

         5.2      Capacity; Due Authorization; Enforceability. All requisite
corporate action required to be taken by Buyer for the execution, delivery and
performance by Buyer of this Agreement and all Related Agreements to which Buyer
is a party have been duly performed. Buyer has the full legal capacity and legal
right, power and authority to enter into this Agreement and the Related
Agreements and to consummate the transactions contemplated hereby and thereby.
This Agreement has been duly executed and delivered by Buyer and is, and this
Agreement and each of the Related Agreements to which Buyer is a party, upon
execution and delivery, will be, a legal, valid and binding obligation of Buyer,
enforceable in accordance with its respective terms, except in each case to the
extent that such enforcement may be subject to applicable bankruptcy,
reorganization, insolvency, moratorium or similar laws of general application
affecting the rights and remedies of creditors or secured parties, and that the
availability of equitable remedies including specific performance and injunctive
relief may be subject to equitable defenses and the discretion of the court
before which any proceeding therefor may be brought.

         5.3      Absence of Conflicting Agreements. The execution and delivery
of this Agreement and the Related Agreements to which Buyer is a party and the
consummation of the transactions contemplated hereby and thereby (provided all
of the Required Consents are

                                       23
<PAGE>   31

obtained and the applicable waiting period(s) under the HSR Act shall have
expired or been terminated) will not (a) violate Buyer's certificate of
incorporation or bylaws; (b) violate any Legal Requirement applicable to Buyer,
the Assets on the Systems; (c) conflict with or result in a breach of or default
under any contract, note, mortgage or agreement to which Buyer is a party or by
which Buyer is bound.

         5.4      Litigation. There is no claim, legal action, arbitration or
other legal, governmental, administrative or tax proceeding, or any order,
complaint, decree or judgment pending, or, to Buyer's knowledge, threatened,
that would prevent, limit, delay or otherwise interfere with Buyer's ability to
consummate the transactions contemplated by this Agreement in accordance with
the terms hereof.

         5.5      Financial Capability. Buyer has the financial capability,
including to obtain financing, necessary to consummate the transactions
contemplated in this Agreement, in accordance with the terms hereof, including
payment of the Purchase Price.

         5.6      Brokers. Neither Buyer nor any Person acting on its behalf has
dealt with any broker or finder in connection with the transactions contemplated
by this Agreement or incurred any liability for any finders' or brokers' fees or
commissions in connection with the transactions contemplated by this Agreement.

6.       Covenants of Sellers and Buyer.

         6.1      Continuity and Maintenance of Operations.

                  (a) Except as Buyer may otherwise agree in writing, until the
Closing each Seller shall operate its respective Systems in the ordinary course
of business consistent with Past Practices and shall:

                  (b) (i)   maintain and repair the Assets in the ordinary
course of business consistent with its year 2000 budgets, and at Closing the
Assets will be in substantially the same condition as they are in as of the date
hereof, subject to ordinary wear and tear;

                      (ii)  maintain its inventory and other supplies and spare
parts at levels consistent with its year 2000 budgets;

                      (iii) make capital expenditures substantially in
accordance with its year 2000 capital budget;

                      (iv)  use commercially reasonable efforts to comply with
Legal Requirements applicable to the Systems;

                      (v)   not conduct promotional activities inconsistent with
Past Practices;

                      (vi)  continue its procedures for disconnection and
discontinuance of service to subscribers whose accounts are delinquent, in
accordance with Past Practices; and

                                       24

<PAGE>   32

                      (vii) not enter into installment sale agreements and other
agreements under which Buyer would be obligated to pay the deferred purchase
price of property, which agreements collectively will involve aggregate payments
in excess of $25,000 following the Closing Date.

                  (c) Except as required by law and except as budgeted by
Seller, after the date of this Agreement, Seller will not, without giving prior
written notice to Buyer, change customer rates for any tier of service or
charges for remote or installation, make channel additions, channel
substitutions, change the channel lineups or implement any retiering or
repackaging of cable television programming offered by any of the Systems, or
change billing, collection or installation practices.

         6.2      Access to Sellers; Confidentiality.

                  (a) Upon reasonable advance notice, each Seller shall afford
to the officers, employees and authorized representatives of Buyer and to the
employees and authorized representatives of Buyer's equity and financing sources
reasonable access during normal business hours to its respective Systems and to
its offices, properties and business and financial records (including computer
files, retrieval programs and similar documentation) that relate to its
respective Systems and the operation thereof.

                  (b) Until Closing Buyer (i) shall use reasonable efforts to
cause its directors, officers, employees and representatives and the employees,
representatives and agents of Buyer's equity and financing sources to hold in
strict confidence all information furnished to any of them by Sellers in
connection with the transactions contemplated by this Agreement that is not
otherwise available to the public (the "Confidential Information"), and (ii)
shall not, without the prior written consent of the Seller or Sellers to which
such Confidential Information pertains, release or disclose any Confidential
Information to any other person, except (A) to the extent required by applicable
law, (B) as necessary in connection with filings, approvals and rulings to be
obtained from any governmental agency, including, but not limited to, the
Federal Trade Commission, the Department of Justice, the Securities and Exchange
Commission and the Internal Revenue Service (it being understood that any such
filing may include the filing of a copy of this Agreement), (C) to Buyer's
equity and financing sources and its directors, officers, employees or
representatives who are informed by Buyer of the confidential nature of the
Confidential Information, (D) as necessary to obtain consents to the transfer of
any Franchise or otherwise necessary for the consummation of the transactions
contemplated by this Agreement, and (E) as otherwise permitted by the remainder
of this Section 6.2(b). In the event Buyer or any person to whom Buyer transmits
Confidential Information pursuant to this Agreement becomes legally compelled to
disclose any of the Confidential Information, Buyer shall provide the Seller or
Sellers to which such Confidential Information pertains with prompt notice so
that such Seller(s) may seek a protective order or other appropriate remedy or
waive compliance with the provisions of this Section 6.2(b), or both. In the
event that such protective order or other remedy is not obtained, or that Seller
waives compliance with the provisions of this Section 6.2(b), Buyer shall
furnish only that portion of the Confidential Information which is legally
required.

                                       25

<PAGE>   33

                  (c) Following the Closing, upon reasonable notice by Buyer,
each Seller shall afford to Buyer's officers, employees, accountants and other
authorized representatives, reasonable access to such Seller's business and
financial records and accountants that relate to such Seller's Systems to enable
Buyer to obtain information and data reasonably required in connection with the
preparation of Buyer's financial statements and any regulatory filings relating
to such Seller's Systems.

         6.3      Notification.

                  (a) Each party shall promptly notify the other of any action,
suit, proceeding or investigation that is instituted or threatened against such
party to restrain, prohibit or otherwise challenge the legality or propriety of
any transaction contemplated by this Agreement.

                  (b) If Buyer or any Seller acquires actual knowledge before
the Closing Date that a material breach of any of Sellers' or Buyer's (as the
case may be) representations or warranties has occurred, the party acquiring
such actual knowledge shall provide prompt written notice to Buyer or the
applicable Seller (as the case may be) describing such breach. Notwithstanding
the foregoing, no notice or information delivered by or to any party shall
affect the other party's right to rely on any representation or warranty made by
such party or relieve such party of any obligations under this Agreement as the
result of a breach of any of its representations and warranties.

         6.4      No Public Announcement. Prior to the Closing Date, no party
hereto shall, without the approval of the other party, make any press release or
other public announcement concerning the transactions contemplated by this
Agreement, except as and to the extent that any such party shall be so obligated
by law, in which case the other party shall be advised and the parties shall use
their reasonable efforts to cause a mutually agreeable release or announcement
to be issued.

         6.5      Regulatory Filings. As soon as may be reasonably practicable,
but in no event later than thirty (30) days after the date hereof, Buyer and
Sellers shall file or cause to be filed with the Federal Trade Commission and
the Antitrust Division of the United States Department of Justice such
Notifications and Report Forms relating to the transactions contemplated hereby
as are required by the pre-merger notification rules issued under the HSR Act.
Buyer and each applicable Seller shall: (i) promptly supply each other with any
information provided in response to any requests for additional information made
by either of such agencies, and (ii) use all reasonable efforts to cause the
waiting period under the HSR Act to terminate or expire at the earliest possible
date. Buyer and the applicable Sellers shall share equally all filing fees
associated with each Notification and Report Form required to be filed in
connection with this Agreement.

         6.6      Employees; Employee Benefits.

                  (a) Subject to the following sentence, effective as of and
contingent upon the Closing, Buyer shall make offers of employment to such
Employees who render services to the Systems as Buyer shall determine, in its
sole and absolute discretion (each Employee who

                                       26

<PAGE>   34

accepts Buyer's offer of employment and who becomes an employee of Buyer
effective as of the Closing hereinafter called a "Transferred Employee"). Not
less than thirty (30) days prior to the Closing, Buyer shall notify each Seller
in writing of the Employees of such Seller to whom Buyer intends offer
employment, and Buyer shall make offers of employment to such Employees in
accordance with the preceding sentence. Prior to Closing each Seller shall, with
respect to its Employees, take all actions reasonably necessary to comply with
the WARN Act, if applicable, and any applicable comparable state laws. Each
Seller shall pay when required all compensation and shall provide all benefits
to its respective Employees as are required, and, except as set forth in Section
6.6(b) Seller shall retain liability for all obligations and liabilities owed to
its respective Employees that relate to periods prior to the Closing Date.

                  (b) Buyer shall offer group health plan coverage to all
Transferred Employees and their spouses and eligible dependents who are covered
on the Closing Date under a group health plan maintained or contributed to by
Sellers, and such coverage shall be the same, and shall be subject to the same
terms and conditions, as Buyer provides to similarly situated employees,
provided that such coverage shall be effective as of the Closing and that no
pre-existing condition limitation shall be applied to any such Transferred
Employees, their spouses and eligible dependents unless, and only to the same
extent that, such persons are subject to pre-existing condition limitations
under Sellers' group health plan. Each Seller shall have full responsibility and
liability for offering and providing "continuation coverage" to any "covered
employee" who is an Employee, and to any "qualified beneficiary" of such
Employee, and who is covered by a "group health plan" sponsored or contributed
to by such Seller (all such group health plans of Sellers individually and
collectively called "Sellers' Health Plans") to the extent that such
continuation coverage is required to be provided by such Seller under Code
Section 4980B, and the regulations promulgated thereunder, as a result of a
"qualifying event" experienced by such covered employee or qualified beneficiary
with respect to or in connection with the transactions contemplated by this
Agreement. "Continuation coverage," "covered employee," "qualified beneficiary,"
"qualifying event" and "group health plan" all shall have the meanings given
such terms under Section 4980B of the Code and Section 601 et seq. of ERISA.

                  (c) Sellers have delivered to Buyer separately descriptions of
Sellers' vacation and sick leave policies. Within ten (10) days following
Buyer's delivery to Sellers of the notices referred to in Section 6.6(a)
(regarding the Employees to whom Buyer intends to make offers of employment),
each Seller shall provide to Buyer a list of the accrued vacation and sick leave
of each of its Employees to whom Buyer has indicated it intends to offer
employment. Each Transferred Employee shall be credited under Buyer's vacation
and sick leave policy with the full amount of vacation leave accrued by such
Transferred Employee but unused as of the Closing Date under the vacation
policies of Sellers applicable to such Transferred Employee.

                  (d) From the date of this Agreement through the date that is
one (1) year following the Closing, without Buyer's consent, neither Sellers,
Charter nor any of Charter's subsidiaries will solicit the employment of persons
who are employees of the Systems as of the date hereof or who become employees
of the Systems prior to Closing, other than (i) any such employee who does not
accept Buyer's offer of employment; and (ii) any Transferred Employee whose
employment is terminated by Buyer following the Closing.

                                       27

<PAGE>   35

         6.7      Required Consents.

                  (a) Following the execution hereof, until the Closing Date,
each Seller shall use commercially reasonable efforts, and Buyer shall cooperate
in good faith with Sellers, to obtain all Required Consents, including Required
Consents under the Franchises, Licenses and Agreements. Each Seller and Buyer
shall prepare and file, or cause to be prepared and filed, within fifteen (15)
days after the date hereof (subject to extension for a period of up to an
additional ten (10) days, if reasonably necessary for a party to complete its
application), all applications (including FCC Forms 394 or other appropriate
forms, to the extent such Seller determines they are necessary or appropriate)
required to be filed with the FCC and any other Governmental Authority that are
necessary for the assignment to Buyer, in connection with the consummation of
the transactions contemplated by this Agreement, of the Governmental
Authorizations. The parties shall also make appropriate requests, as soon as
practicable after the date hereof, for any Required Consent required under any
Agreement. Notwithstanding subsection (d)(i) hereof, and subject to subsection
(d)(ii) hereof, nothing in this Section 6.7 shall require the expenditure or
payment of any funds (other than in respect of normal and usual attorneys' fees,
filing fees or other normal costs of doing business) or the giving of any other
consideration by Buyer or Sellers, provided that Sellers shall be liable for all
obligations or liabilities under each Governmental Authorization or Agreement
during the period prior to the Closing Date.

                  (b) In connection with and as part of the parties' efforts to
obtain the Required Consents of each applicable Governmental Authority to the
transfer of any Franchise issued thereby from each applicable Seller to Buyer,
such Seller shall use commercially reasonable efforts to obtain, with Buyer's
cooperation, a Franchise Renewal for each such Franchise that has expired or
shall expire prior to the Closing Date, and a Franchise Extension for each such
Franchise that shall, by its terms, expire during the thirty-month period
subsequent to the Closing Date.

                  (c) Sellers shall also use commercially reasonable efforts to
cause each such Required Consent relating to a Franchise or Agreement to include
provisions that permit (i) Buyer to grant a security interest in such Franchise
or Agreement to its lender(s) providing financing to Buyer with respect to the
transaction contemplated hereby, and (ii) Buyer to transfer such Franchise or
Agreement to any Affiliate of Buyer that agrees in writing as a condition to
such transfer to be bound by any and all obligations of Buyer in connection
therewith; provided, that Sellers shall have no additional obligation with
respect to obtaining such provisions if the inclusion of such provisions would
cause such Required Consent to be unreasonably withheld, delayed or otherwise
conditioned.

                  (d) (i) Buyer agrees that if in connection with the process of
obtaining any Required Consent, Franchise Renewal or Franchise Extension, a
Governmental Authority or other Person purports to require any condition or any
change to a Franchise, License or Agreement to which such Required Consent,
Franchise Renewal or Franchise Extension relates that would be applicable to
either Buyer or Sellers as a requirement for granting such Required Consent,
Franchise Renewal or Franchise Extension, which condition or change involves a
monetary payment or commitment to such Governmental Authority or other Person,
either Buyer

                                       28

<PAGE>   36

or Sellers may elect, in its or their sole discretion, to satisfy such monetary
payment or commitment, in which case, Buyer and Sellers will accept any
condition or change in the Franchise, License or Agreement to which such
Required Consent, Franchise Renewal or Franchise Extension relates to the extent
provided herein.

                      (ii)  Subject to the terms of subsection (i) above, no
Seller shall agree, without Buyer's prior written consent, which consent Buyer
shall grant or withhold in its reasonably exercised discretion, to any adverse
change (other than immaterial, non-monetary changes) to the terms of any
Governmental Authorization or Agreement as a condition to obtaining any Required
Consent to the assignment of such Governmental Authorization or Agreement to
Buyer. If in connection with the obtaining of any Required Consent, a
Governmental Authority or other third party seeks to impose any condition or
adverse change to any Governmental Authorization or Agreement to which such
Required Consent relates that would be applicable to Buyer as a requirement for
granting such Required Consent, Sellers shall promptly notify Buyer of such fact
and Sellers shall not agree to such condition or adverse change unless Buyer
shall, in its reasonably exercised discretion, consent to such condition or
change in writing.

                  (e) Buyer shall promptly furnish to any Governmental Authority
or other Person from which a Required Consent, Franchise Extension or Franchise
Renewal is requested such accurate and complete information regarding Buyer and
its Affiliates, including financial information relating to the cable and other
media operations of Buyer and its Affiliates, as a Governmental Authority or
other Person may reasonably require in connection with obtaining any Required
Consent, Franchise Extension or Franchise Renewal.

                  (f) It is understood and agreed that nothing herein shall
prevent Buyer or its Affiliates (or their employees, agents, representatives and
any other Person acting on behalf of Buyer and its Affiliates) from making
statements or inquiries to, attending meetings of, making presentations to, or
from responding to requests initiated by, Governmental Authorities or other
Persons from which a Required Consent, Franchise Extension or Franchise Renewal
is sought, and Buyer shall use commercially reasonable efforts to apprise
Sellers of all such requests.

         6.8      Use of Transferor's Name. For a period of 180 days after the
Closing Date, Buyer may continue (but only to the extent reasonably necessary)
to operate the Systems using the name "Enstar" and all derivations and
abbreviations of such name and related trade names and marks in use in the
Systems on the Closing Date, such use to be in a manner consistent with the way
in which Sellers have used the marks. Within 180 days after the Closing Date,
Buyer will discontinue using and will dispose of all items of stationery,
business cards and literature bearing such name or marks. Notwithstanding the
foregoing, Buyer will not be required to remove or discontinue using any such
name or mark that is affixed to converters or other items in or to be used in
customer homes or properties, or as are used in similar fashion making such
removal or discontinuation impracticable for Buyer.

         6.9      Delivery of Subscriber Information. Between the date of this
Agreement and the Closing Date, promptly after the preparation thereof, each
Seller shall deliver to Buyer true, correct and complete copies of (i) quarterly
financial information, including a balance sheet, a

                                       29

<PAGE>   37

statement of income and expenses and a statement of cash flows (ii) quarterly
statements of capital expenditures with respect to such Seller's Systems and
(iii) monthly subscriber counts for its Systems prepared by such Seller for its
internal use.

         6.10     Tax Matters. All transfer, documentary, sales, use, stamp,
registration and other Taxes and fees (including any penalties and interest),
incurred in connection with the transactions consummated pursuant to this
Agreement with respect to the Assets conveyed by any Seller shall be shared
equally by Buyer and such Seller. Buyer and Sellers will cooperate in all
reasonable respects to prepare and file all necessary federal, state and local
tax returns, tax information returns, reports and estimates and other
documentation with respect to all such transfer, documentary, sales, use, stamp,
registration and other Taxes and fees.

         6.11     Further Assurances; Satisfaction of Covenants. Sellers and
Buyer each shall execute such documents and other papers and take or cause to be
taken such further action as may be reasonably required to carry out the
provisions hereof and to consummate and make effective the transactions
contemplated hereby. Sellers and Buyer shall each use commercially reasonable
efforts to satisfy each of its covenants and obligations under this Agreement
and to satisfy each condition to Closing it is required to satisfy hereunder.

         6.12     Environmental Reports; Title Commitments.

                  (a)  (i) Buyer shall be entitled to obtain, at its own
expense, during the period of sixty (60) days after the date hereof (the "Real
Estate Inspection Period") (A) commitments of title insurance ("Title
Commitments") issued by a nationally-recognized title insurance company selected
by Buyer and reasonably acceptable to Sellers (a "Title Company"), committing to
insure fee title to the parcels of Real Property owned by Sellers and leasehold
title to those parcels of Real Property leased by Sellers, by ALTA (1992)
owner's policies of title insurance, (B) surveys of said parcels of Real
Property, in such form as is necessary to obtain the title insurance to be
issued pursuant to the Title Commitments, with the standard printed exceptions
relating to survey matters deleted ("Surveys"), certified to Buyer and to the
Title Company issuing the Title Commitment with respect to that parcel of Real
Property, and (C) Phase I environmental reports concerning the owned or leased
Real Property, which shall be performed by environmental consulting or
engineering firms reasonably acceptable to Buyer and Sellers (together with any
Phase II report, "Environmental Reports"). Buyer shall deliver to Sellers true
and complete copies of all such Title Commitments, Surveys and Environmental
Reports within five (5) Business Days after Buyer's receipt thereof.

                  (ii) If any Phase I Environmental Report discloses a potential
presence of Hazardous Substances or a violation of any Environmental Law that is
sufficiently material to reasonably warrant a Phase II study, or shall otherwise
recommend performance of a Phase II study, then Buyer shall have the right
(subject to the provisions of this Paragraph (a)(ii)) beyond such 60 day period,
to obtain a Phase II report with respect to the subject parcel of Real Property,
in which event the Real Estate Inspection Period shall be extended accordingly
(but not more than 45 days) with respect to such parcel of Real Property. Any
such Phase II report shall be ordered promptly after receipt and analysis of the
respective Phase I report. If Buyer proposes to undertake a Phase II
environmental study on any parcel of Real Property, Buyer shall provide to

                                       30

<PAGE>   38

the applicable Seller a plan for such proposed study prior to commencing the
same, and such Seller shall have the right (which such Seller shall exercise by
written notice to Buyer within ten (10) Business Days after receipt of Buyer's
proposal) to deny by Buyer's request to perform such Phase II environmental
study on such Real Property. If such Seller refuses to allow such Phase II
study, Buyer may terminate this Agreement by written notice to Sellers within
ten (10) Business Days of such Seller's refusal, or Buyer may elect to close
notwithstanding such refusal. If Buyer elects to close notwithstanding such
refusal, (A) Buyer may not thereafter terminate this Agreement based on Title
Defects or Environmental Defects of the applicable parcel of Real Property, (B)
Buyer shall not have any recourse against Sellers based on such Title Defects or
Environmental Defects except as provided in clause (C) of this sentence, and (C)
if within six (6) months after Closing, Buyer incurs environmental remediation
expenses in respect of Environmental Defects at the site(s) for which a Seller
refused to allow a Phase II study, such Seller will reimburse Buyer for the
reasonable costs of such remediation; provided, that (I) in no event shall the
aggregate amount of reimbursement by Sellers under this clause (C) and any
remediation costs incurred by Sellers prior to Closing in respect of
Environmental Defects and Title Defects (other than monetary Encumbrances that
Seller is required to remove regardless of the amount thereof) exceed $100,000
in the aggregate, and (II) this clause (C) shall be inapplicable if a Purchase
Price reduction is made under Subsection (b) or (c) of this Section 6.12.

                  (b) In the event that a Title Commitment or Survey reveals the
existence of any matter that renders title to the subject Real Property to be
other than as represented herein (a "Title Defect"), and Buyer requests in
writing, within ten (10) days of Buyer's receipt of the relevant Title
Commitment or Survey, that the applicable Seller remedy the same, then such
Seller shall use commercially reasonable efforts to either cure the Title Defect
or cause the Title Company to insure over it; provided, that Sellers shall not
be obligated to expend more than an aggregate amount of $100,000 for remediation
of all Title Defects and Environmental Defects required to be remedied hereunder
(other than monetary Encumbrances that Seller is required to remove regardless
of the amount thereof); and if it is reasonably expected that the cost of such
remediation together with the actual or estimated expense of remedying
Environmental Defects will exceed $100,000 in the aggregate, such Seller shall
have no obligation to undertake such remediation. A Seller's decision regarding
whether to undertake remediation shall be made by written notice to Buyer within
ten (10) Business Days after all Title Defects and Environmental Defects are
disclosed to Sellers. If under such circumstances the applicable Seller elects
to not undertake such remediation, Buyer may, by notice to such Seller given
within ten (10) Business Days after such Seller's election to not remediate,
terminate this Agreement, or Buyer may, by notice to Sellers given within ten
(10) Business Days after such Seller's election to not remediate, elect to close
notwithstanding such election. If Buyer elects to close notwithstanding such
election, (i) Buyer may not thereafter terminate this Agreement based on Title
Defects or Environmental Defects; (ii) Buyer shall have no recourse against
Sellers based on any such Title Defects or Environmental Defects (including any
claim for indemnification pursuant to Section 10 hereof); and (iii) at Closing
the Purchase Price shall be reduced by $100,000; provided, that there shall be
no such reduction in the Purchase Price under this subsection (b) if there is a
Purchase Price reduction under Subsection (c) below.

                                       31

<PAGE>   39

                  (c) In the event that an Environmental Report reveals the
presence of Hazardous Substances on the Real Property that could reasonably
result in liability to the owner or user thereof or reveals noncompliance with
any Environmental Law (either, an "Environmental Defect"), and Buyer requests in
writing, within ten (10) days of Buyer's receipt of the relevant Environmental
Report, that the applicable Seller remedy the same, such Seller shall use
commercially reasonable efforts to cure any such Environmental Defect; provided,
that Sellers shall not be obligated to expend more than an aggregate of $100,000
for remediation of all Environmental Defects and Title Defects (other than
monetary Encumbrances that Seller is required to remove regardless of the amount
thereof); and, if it is reasonably expected that the cost of such remediation
together with the actual or estimated cost of remedying Title Defects (other
than monetary Encumbrances that Seller is required to remove regardless of the
amount thereof) will exceed $100,000 in the aggregate, such Seller shall have no
obligation to undertake such remediation. A Seller's decision as to whether to
undertake remediation shall be made by written notice to Buyer within ten (10)
Business Days after all Title Defects and Environmental Defects are disclosed to
Sellers. If under such circumstances the applicable Seller elects to not
remediate, Buyer may, by notice to Sellers given within ten (10) Business Days
after such Seller's election to not remediate, proceed to close notwithstanding
such election. If Buyer elects to close notwithstanding such election, (i) Buyer
may not thereafter terminate this Agreement based on Title Defects or
Environmental Defects; (ii) Buyer shall have no recourse against Sellers based
on Title Defects or Environmental Defects (including any claim for
indemnification pursuant to Section 10 hereof); and (iii) at Closing the
Purchase Price shall be reduced by $100,000; provided, that there shall be no
such reduction in the Purchase Price under this Subsection (c) if there is a
Purchase Price reduction under Subsection (b) above.

                  (d) After the Real Estate Inspection Period (as it may be
extended pursuant to Subsection (a)(ii) hereof) Buyer shall not be entitled to
terminate this Agreement based on Title Defects or Environmental Defects, nor
shall Buyer be entitled to make any claim for indemnification pursuant to
Section 10 hereof based on Title Defects or Environmental Defects.

                  (e) Buyer shall indemnify each Seller and hold each Seller
harmless from and against any losses incurred by such Seller relating to damage
to Real Property in connection with Buyer's obtaining any Environmental Reports.

         6.13     Limited Partner Consents. As soon as reasonably practicable
following the execution hereof, the Limited Partnerships and the General
Partners shall, if required to do so under applicable Legal Requirements, file
with the SEC proposed proxy materials relating to the Limited Partnerships' and
the General Partners' solicitation of the Limited Partner Consents. Each Limited
Partnership and General Partner shall use reasonable efforts (i) to have such
proxy materials cleared by the SEC (if applicable) so as to enable it to
disseminate definitive proxy materials to its respective Limited Partners, (ii)
to disseminate such materials, upon receipt of SEC clearance (if applicable), to
its respective Limited Partners and (iii) thereafter to obtain the Limited
Partner Consents. Sellers shall give Buyer prompt notice when the Limited
Partner Consents have been obtained and when any material development has
occurred that causes substantial doubt as to whether the Limited Partner
Consents will be obtained.

                                       32

<PAGE>   40

         6.14     Acquisition Proposals. If, prior to obtaining all the Limited
Partner Consents, any Seller or any Person acting on behalf of any Seller
receives a solicitation from a third party regarding an Acquisition Proposal (as
defined herein), which Acquisition Proposal such Seller intends to submit to its
respective Limited Partners (or the Limited Partners of its General Partner, as
the case may be) for their approval, such Seller shall, within five (5) Business
Days following receipt of such solicitation, notify Buyer in writing of the
price and other material terms of such Acquisition Proposal, and Buyer shall be
entitled, within five (5) Business Days following receipt of such notification,
to submit an Acquisition Proposal in response to the third party's Acquisition
Proposal (a "Buyer Acquisition Proposal"), which Buyer Acquisition Proposal
shall contain all the terms and conditions of this Agreement other than the
Purchase Price. For purposes hereof, an "Acquisition Proposal" means any bona
fide proposed (i) asset acquisition or exchange or similar transaction providing
for any third party's acquisition of any of the Assets or Systems or (ii)
acquisition of partnership interests, merger, consolidation, exchange of
partnership or other equity interests or similar transaction that would result
in the acquisition by any third party of a percentage of the Interests (as
defined herein) in any Seller sufficient to give such third party voting control
over the applicable Seller. For purposes hereof, an "Interest" in any Seller
means an interest in the capital and profits of such Seller or General Partner
that is acquired by the making of a capital contribution to such Seller or as
otherwise provided under the general or limited partnership agreement applicable
to such Seller.

         6.15     Noncompetition Agreement. Charter agrees, on behalf of itself
and its direct and indirect subsidiaries, that prior to the third anniversary of
the Closing Date it will not, without the written consent of Buyer, directly or
indirectly, own, manage, operate or control, engage or participate in the
ownership, management, operation or control of or be connected as a shareholder,
partner, manager, agent or otherwise with any business or company any part of
which operates hardwire cable television systems (or which obtains or holds any
franchises therefor) within any of the Franchise Areas. Notwithstanding the
foregoing, nothing in this provision shall be construed to prohibit the
following: (i) the ownership of a company's securities that constitute less than
ten percent (10%) of the outstanding voting stock of such company or does not
otherwise constitute control over such company, (ii) the operation by Charter or
any of its subsidiaries that are bound by this provision of cable television
systems (or the holding of franchises therefor) in those geographical areas
included in the Franchise Areas for which Charter or any such subsidiary holds a
cable franchise on the date hereof or (iii) the direct or indirect ownership,
management, operation or control by Charter or any of its subsidiaries that are
bound by this provision of any cable business as the result of a transaction in
which the subscribers involved that are located within the Franchise Areas
constitute a minority of the subscribers involved in such transaction.

         6.16     Microwave Services; Headend Services.

                  (a) Buyer agrees that following the Closing, Buyer shall
provide cable television signals to certain customers of Charter (or an
Affiliate of Charter), currently serviced by Enstar Cumberland, who are located
in Columbia/Adair and Green Counties, Kentucky, from headends that are included
within the Assets Buyer is acquiring from Enstar Cumberland hereunder. In
furtherance thereof, at Closing, Buyer and Charter (or such Affiliate, as the
case may be) shall enter into an agreement for the provision of such signals,
which agreement shall be

                                       33

<PAGE>   41

on reasonable and customary terms to be discussed by the parties thereto
("Headend Services Agreement").

                  (b) Buyer and Sellers agree that in the event that following
the Closing it is necessary for Buyer to provide microwave signals to any of the
Systems in order for such System or Systems to continue to carry all of the
programming carried by it or them as of the Closing, Buyer and the affected
Seller(s) shall enter into an agreement at the Closing to provide for Buyer's
provision of such signal,s which agreement shall be on reasonable and customary
terms to be discussed by the parties thereto ("Microwave Services Agreement").

                  (c) If, after reasonable discussions, the parties thereto are
not able to agree on the terms of either the Headend Services Agreement or the
Microwave Services Agreement, the parties shall appoint an arbitrator to resolve
the disputed terms, which arbitrator shall be an attorney who is an expert with
respect to the relevant FCC matters and who does not currently represent any of
such parties or their respective Affiliates. Such arbitrator's resolution of the
disputed terms of the Headend Services Agreement and/or the Microwave Services
Agreement shall be final and binding and shall be effective retroactive to the
effective date thereof.

         6.17     Performance of Settlement Agreement. In the event that Sellers
enter into the Settlement Agreement, whether before or after the Closing, Buyer
expressly agrees that it shall be bound by the terms of, and shall fully perform
the obligations set forth in, Sections 8.1 through 8.3 of the Settlement
Agreement, insofar as such terms and obligations relate to the Systems acquired
by Buyer hereunder. The Purchase Price payable to each Seller shall be reduced,
pursuant to Section 3.3(b) or thereafter, by the amount of (i) $20.00 for each
claim made under the Settlement Agreement with respect to any of such Seller's
Systems by a claimant that is a then-current customer of any such Systems, and
(ii) $9.95 for each claim made under the Settlement Agreement with respect to
any of such Seller's Systems by a claimant that is a former customer of any such
Systems; each of which claims shall have been made in accordance with the terms
of the Settlement Agreement and shall be evidenced by documentation
demonstrating, to Sellers' reasonable satisfaction, Buyer's satisfaction of such
claim. Buyer agrees to indemnify and hold harmless Sellers and their Affiliates
from and against any and all claims, costs and expenses based on or arising out
of Buyer's failure to fully comply with and perform the obligations set forth in
Sections 8.1 through 8.3 of the Settlement Agreement insofar as related to the
Systems acquired by Buyer hereunder. It is expressly agreed and understood that
Buyer is not assuming and shall not be bound by any term or provision of the
Settlement Agreement other than as expressly set forth herein.

7.       Conditions Precedent To Buyer's Obligations.

         The obligations of Buyer to purchase and accept assignment, transfer
and delivery of the Assets to be sold, assigned, transferred and delivered to
Buyer hereby are subject to the satisfaction or waiver, at or prior to the
Closing Date (as provided herein), of the following conditions:

         7.1      Representations and Warranties of Sellers. As to the
representations and warranties of Sellers set forth in Section 4, (1) each of
those representations and warranties set

                                       34

<PAGE>   42

forth in Section 4 which is expressly stated to be made solely as of the date of
this Agreement or another specified date shall be true and correct in all
respects as of such date, without regard to the materiality or Material Adverse
Effect qualifiers set forth therein, and (2) each of the other representations
and warranties of Sellers set forth in Section 4 shall be true and correct in
all respects at and as of the time of the Closing as though made at and as of
that time, without regard to the materiality or Material Adverse Effect
qualifiers set forth therein; provided, that for purposes of each of clauses (1)
and (2) above, the representations and warranties shall be deemed true and
correct in all respects to the extent that the aggregate effect of the
inaccuracies in such representations and warranties as of the applicable times
does not constitute a Material Adverse Effect; and provided, further, that the
representations and warranties referred to in this Section 7.1 shall not include
the representations and warranties contained in Section 4.8(c) with respect to
any Governmental Authorization with respect to which a Franchise Extension or
Franchise Renewal shall have been obtained.

         7.2      Covenants. Each Seller shall have performed and complied in
all material respects with all covenants and agreements required by this
Agreement to be performed or complied with by it prior to or at the Closing.

         7.3      Transferable Franchise Areas; Material Consents; Franchise
Renewals; Franchise Extensions. (i) The Franchise Areas covering at least ninety
percent (90%) of Subscribers shall have become Transferable Franchise Areas;
provided, that if the Franchises and Assets of Enstar IX are not transferred at
Closing pursuant to Section 11.1(g), such Systems and the Subscribers served
thereby shall be excluded for purposes of such calculation; (ii) subject to
clause (i), the Material Consents (other than those that pertain solely to
non-Transferable Franchise Areas or Retained Assets) shall have been obtained
(other than those that pertain solely to non-Transferable Franchise Areas); and
(iii) the Franchise Renewals and Franchise Extensions shall have been obtained.

         7.4      Hart-Scott-Rodino Act. All necessary pre-merger notification
filings required under the HSR Act shall have been made with the Federal Trade
Commission and the United States Department of Justice and the prescribed
waiting period(s) (and any extensions thereof) will have expired or been
terminated.

         7.5      Judgment. There shall not be in effect on the date on which
the Closing is to occur any judgment, decree, order or other prohibition having
the force of law that would prevent or make unlawful the Closing; provided, that
the Buyer shall have used commercially reasonable efforts to prevent the entry
of any such judgment, decree, order or other legal prohibition and to appeal as
expeditiously as possible any such judgment, decree, order or other legal
prohibition that may be entered.

         7.6      Delivery of Certificates and Documents. Sellers shall have
furnished to Buyer the following:

                  (a) a certificate of the Secretary or Assistant Secretary of
each Seller or, if applicable, such Seller's ultimate corporate general partner,
as to (i) the limited or general partnership agreement of Seller; (ii) all
actions taken by and on behalf of Seller and its partners

                                       35
<PAGE>   43

to authorize the execution, delivery and performance of this Agreement and the
Related Agreements and (iii) the incumbency of officers signing this Agreement
and any Related Agreement on behalf of such Seller;

                  (b) in the case of each Seller that is a Limited Partnership,
a certificate of good standing of such Seller that is a limited partnership from
the Secretary of State of its state of formation and a certificate of foreign
qualification for each such Seller from each state in which any of such Seller's
Assets are located;

                  (c) a certificate of an executive officer of Enstar,
certifying on behalf of Sellers that the conditions set forth in Sections 7.1
and 7.2 have been met;

                  (d) the Bill of Sale and Assignment and Assumption Agreements,
duly executed by Sellers;

                  (e) the Indemnity Escrow Agreement(s) duly executed by
Sellers;

                  (f) if necessary, the Management Agreement(s), duly executed
by the appropriate Seller(s);

                  (g) a deed, in form and substance reasonably satisfactory to
the applicable Seller and Buyer, conveying title to each parcel of Real Property
owned by such Seller to Buyer;

                  (h) copies of all Material Consents obtained on or prior to
Closing; and

                  (i) all other documents as are reasonably necessary to
transfer title to the Assets to Buyer.

         7.7      Opinion of Sellers' Counsel. Sellers shall have furnished
Buyer with an opinion letter, dated the Closing Date, of Baer Marks & Upham LLP,
counsel for Sellers, in the form set forth in Exhibit D hereto.

         7.8      Opinion of Sellers' FCC Counsel. Sellers shall have furnished
Buyer with an opinion letter, dated the Closing Date, of Cole, Raywid &
Braverman, L.L.P., FCC counsel for Sellers, in the form set forth in Exhibit E
hereto.

         7.9      General and Limited Partner Consents. The General Partner
Consents and the Limited Partner Consents shall have been obtained, except that
obtaining the Limited Partner Consents with respect to Enstar IX shall not be a
condition to Buyer's closing with respect to any other Seller.

         7.10     Aggregate Subscriber Total. On the Closing Date the Systems
shall serve, in the aggregate, no fewer than 51,000 Subscribers; provided, that
if the Systems of Enstar IX are not transferred at Closing in accordance with
the terms of this Agreement, on the Closing Date the Systems shall serve, in the
aggregate, no fewer than 49,630 Subscribers.

                                       36

<PAGE>   44

         8.       Conditions Precedent to Sellers' Obligations.

         The obligations of Sellers to sell, assign, transfer and deliver the
Assets to Buyer hereunder are subject to the satisfaction or waiver at or prior
to the Closing Date (as provided herein) of the following conditions:

         8.1      Representations and Warranties of Buyer. As to the
representations and warranties of Buyer set forth in Section 5, (1) each of
those representations and warranties set forth in Section 5 which is expressly
stated to be made solely as of the date of this Agreement or another specified
date shall be true and correct in all respects as of such date, without regard
to the materiality or Material Adverse Effect qualifiers set forth therein, and
(2) each of the other representations and warranties of Buyer set forth in
Section 5 shall be true and correct in all respects at and as of the time of the
Closing as though made at and as of that time, without regard to the materiality
or Material Adverse Effect qualifiers set forth therein; provided that for
purposes of each of clauses (1) and (2) above, the representations and
warranties shall be deemed true and correct in all respects to the extent that
the aggregate effect of the inaccuracies in such representations and warranties
as of the applicable times does not constitute a Material Adverse Effect.

         8.2      Covenants. Buyer shall have performed and complied in all
material respects with all covenants and agreements required by this Agreement
to be performed or complied with by it prior to or at the Closing.

         8.3      Transferable Franchise Areas; Material Consents. (i) The
Franchise Areas covering at least ninety percent (90%) of Subscribers shall have
become Transferable Franchise Areas; provided, that if the Franchises and Assets
of Enstar IX are not transferred at Closing pursuant to Section 11.1(g), such
Systems and the Subscribers served thereby shall be excluded for purposes of
such calculation; and (ii) subject to clause (i), the Material Consents issued
by Governmental Authorities (other than those that pertain solely to
non-Transferable Franchise Areas or Retained Assets) shall have been obtained.

         8.4      Hart-Scott-Rodino Act. All necessary pre-merger notification
filings required under the HSR Act will have been made with the Federal Trade
Commission and the United States Department of Justice, and the prescribed
waiting period(s) (and any extensions thereof) will have expired or been
terminated.

         8.5      Judgment. There shall not be in effect on the date on which
the Closing is to occur any judgment, decree, order or other prohibition having
the force of law that would prevent or make unlawful the Closing; provided that
Sellers shall have used commercially reasonable efforts to prevent the entry of
any such judgment, decree, order or other legal prohibition and to appeal as
expeditiously as possible any such judgment, decree, order or other legal
prohibition that may be entered.

         8.6      General and Limited Partner Consents. The General Partner
Consents and the Limited Partner Consents shall have been obtained, except that
obtaining the Limited Partner

                                       37

<PAGE>   45

Consents with respect to Enstar IX shall not be a condition to Sellers' closing
with respect to any other Seller.

         8.7      Aggregate Subscriber Total. On the Closing Date the Systems
shall serve, in the aggregate, no fewer than 51,000 Subscribers; provided, that
if the Systems of Enstar IX are not transferred at Closing in accordance with
the terms of this Agreement, on the Closing Date the Systems shall serve, in the
aggregate, no fewer than 49,630 Subscribers.

         8.8      Delivery of Certificates and Documents. Buyer shall have
furnished to Sellers the following:

                  (a) a certificate of the Secretary or Assistant Secretary of
Buyer as to (i) the certificate of incorporation and bylaws of Buyer, (ii)
resolutions of Buyer authorizing the execution, delivery and performance of this
Agreement and the Related Agreements; and (iii) the incumbency of officers
signing this Agreement and the Related Agreements on behalf of Buyer;

                  (b) a certificate of legal existence and good standing of
Buyer from the Secretary of State of Buyer's state of organization and a
certificate of foreign qualification of Buyer in any state in which any of the
Systems or Assets is located;

                  (c) a certificate of an executive officer of Buyer certifying
that the conditions set forth in Sections 8.1 and 8.2 have been met;

                  (d) the Bill of Sale and Assignment and Assumption Agreements,
duly executed by Buyer;

                  (e) the Indemnity Escrow Agreement(s), duly executed by Buyer;

                  (f) the Headend Services Agreement, duly executed by Buyer;
and

                  (g) if necessary, the Management Agreement(s), duly executed
by Buyer.

         8.9      Opinion of Buyer's Counsel. Buyer shall have furnished Sellers
with an opinion letter, dated the Closing Date, of Dow Lohnes & Albertson, PLLC,
counsel for Buyer, in the form set forth in Exhibit F.

         8.10     Payment for Assets. Buyer shall have delivered the Purchase
Price as provided in Section 3.2.

9.       Retained Franchises and Assets.

         9.1      Non-Transferable Franchise Areas. In the event that on the
Closing Date any Franchise Area is not a Transferable Franchise Area, then the
Franchise covering such Franchise Area ("Retained Franchise") and any other
Assets used solely in connection with any Seller's operations within such
Franchise Area ("Retained Assets") shall be excluded from the Assets conveyed on
the Closing Date, and the provisions of this Section 9 shall apply. In the event
there are any Retained Franchises and Assets on the Closing Date, the amount of
the Purchase Price

                                       38

<PAGE>   46

paid by Buyer at Closing with respect to such Retained Franchises and Assets
shall be the Discounted Franchise Purchase Price (as defined in Section 9.5)
with respect thereto.

         9.2      Retained Franchise Consents. From and after the Closing Date
the Seller(s) owning any Retained Franchises or Retained Assets shall continue
to use commercially reasonable efforts to obtain the Required Consent with
respect to any Retained Franchise ("Retained Franchise Consent"), and the terms
and conditions of Section 6.7, insofar as they apply to Franchise Required
Consents, shall govern the obtaining of any such Retained Franchise Consent.

         9.3      Subsequent Closings. Subject to Section 9.4, at such time as
the Franchise Area covered by any Retained Franchise shall become a Transferable
Franchise Area, Buyer and the applicable Seller shall conduct a closing (each, a
"Subsequent Closing") at which such Seller shall assign, transfer, convey and
deliver to Buyer, and Buyer shall acquire from such Seller, the Retained
Franchise covering such Franchise Area and any Retained Assets with respect
thereto. Each Subsequent Closing shall take place on a Business Day on which the
relevant parties shall agree and that is not less than five (5) nor more than
ten (10) Business Days from the date on which Buyer receives notice that the
Retained Franchise Consent is obtained or the relevant Franchise Area has
otherwise become a Transferable Franchise Area. At such Subsequent Closing, (i)
Buyer shall deliver to the applicable Seller, in the manner set forth in Section
3.2(a), the amount of the difference between the Franchise Purchase Price and
the Discounted Franchise Purchase Price with respect to such Retained Franchise
and any such Retained Assets; and (ii) Buyer or the applicable Seller, as the
case may be, shall deliver the instruments described in Sections 7.6(d), (g),
(h) and (i) and 8.7(d) with respect to such Retained Franchise and Retained
Assets.

         9.4      Final Closing. If, on the date that is one (1) year from the
date of the Closing Date, any Franchise Area shall not have become a
Transferable Franchise Area, Buyer and the Seller with respect thereto shall
nevertheless conduct a final Closing with respect to the Retained Franchise and
Retained Assets relating to any such Franchise Area ("Final Closing"), at which
such Seller shall assign, transfer, convey and deliver to Buyer, and Buyer shall
acquire from such Seller, such Retained Franchise and Retained Assets. Such
Final Closing shall occur on such one year anniversary date or, if such date is
not a Business Day, on the next Business Day. At such Final Closing, Buyer or
the applicable Seller, as the case may be, shall deliver the instruments
described in Sections 7.6(d), (g), (h) and (i) and 8.7(d) with respect to such
Retained Franchise and Retained Assets.

         9.5      Franchise Purchase Price; Discounted Franchise Purchase Price.
The "Franchise Purchase Price" with respect to any Retained Franchise (and the
Retained Assets with respect thereto), shall be the product of (i) the number of
Subscribers covered by such Retained Franchise as of the Closing Date, based on
the Pre-Closing Certificate, as it may be modified to reflect the resolution of
any pre-Closing disputes with respect thereto, and (ii) the Subscriber
Adjustment Amount applicable to the Seller of such Retained Franchise and
Assets. The "Discounted Franchise Purchase Price" with respect to any Retained
Franchise (and the Retained Assets with respect thereto) shall be the amount of
eighty percent (80%) of the Franchise Purchase Price with respect to such
Retained Franchise and Assets.

                                       39
<PAGE>   47

         9.6      Management Agreement. If there are any Retained Franchises,
the Systems covered by such Retained Franchises shall be operated pursuant to
the Management Agreement from the Closing until the Subsequent Closing with
respect thereto or the Final Closing, as the case may be.

10.      Survival of Representations and Warranties; Indemnification.

         10.1     Survival of Representations and Warranties. Subject to Section
6.12, the representations and warranties of the parties provided for in this
Agreement shall survive the Closing for a period of six (6) months, except
representations and warranties relating to environmental matters and title to
Real Property, which representations and warranties shall be governed by Section
6.12, and to Taxes, title to Assets other than Real Property and authority,
which representations and warranties shall survive the Closing for the duration
of the applicable statute of limitations (the "Indemnity Period"). No claim for
indemnification for breach of a representation or warranty may be asserted after
the expiration of the applicable Indemnity Period; provided, that the written
assertion of any claim by a party against the other hereunder with respect to
the breach or alleged breach of any representation, warranty (or of a series of
facts which would support such breach) shall extend the Indemnity Period with
respect to such claim through the date such claim is conclusively resolved.

         10.2     Indemnification.

                  (a) Subject to the provisions of Sections 10.1 and 10.5, Buyer
agrees to indemnify and hold harmless each Seller, after the Closing, from and
against any and all claims to the extent such claims are based upon, arise out
of or are related to (i) a breach of any representation or warranty, or any
failure to perform or comply with any of the covenants, conditions or agreements
of Buyer set forth in this Agreement or in any Related Agreement, (ii) the
assertion of any claim or legal action against such Seller by any Person or
Governmental Authority based upon, arising out of or relating to the ownership
or operation of the Assets occurring, arising or accruing after the Closing
Date, or (iii) as set forth in Section 6.17.

                  (b) Subject to the provisions of Sections 10.1 and 10.5, each
Seller agrees to indemnify and hold harmless Buyer, after the Closing, from and
against any and all claims to the extent such claims are based upon, arise out
of or relate to (i) a breach of any representation or warranty, or any failure
to perform or comply with any of the covenants, conditions or agreements of such
Seller set forth in this Agreement or in any Related Agreement or (ii) any
liability of such Seller arising or accruing on or prior to, or existing on, the
Closing Date, except any such liability for which an adjustment to the Purchase
Price is made pursuant to Section 3.3(a)(ii); or (iii) any obligation or
liability of such Seller not assumed by Buyer pursuant to the terms of this
Agreement.

         10.3     Assertion of Claims.

                  (a) If Buyer, on the one hand, or any Seller, on the other
hand believes that it has a claim for indemnification, it shall notify the other
(the particular Seller, in the case of a claim against a particular Seller)
promptly in writing describing such claim with reasonable

                                       40

<PAGE>   48

particularity and containing a reference to the provisions of this Agreement
under which such claim has arisen.

                  (b) As used in this Section 10 the word "claim" shall mean any
and all liabilities, obligations, losses, damages, deficiencies, demands,
claims, fines, penalties, interest, assessments, judgments, actions, proceedings
and suits of whatever kind and nature and all costs and expenses relating
thereto (including, without limitation, reasonable attorneys' fees incurred in
connection with the investigation or defense thereof or in asserting rights
hereunder).

                  (c) Neither this Section 10 nor any other provision of this
Agreement is intended to confer any third party beneficiary rights, including
but not limited to any extension of any statute of limitations pertaining to
suits, actions or proceedings brought by third parties.

         10.4     Notice of and Right to Defend Third Party Claims. Promptly
upon receipt of notice of any claim or the commencement of any suit, action or
proceeding by a third party in respect of which indemnification may be sought on
account of an indemnity agreement contained in Section 10.2, the party seeking
indemnification (the "Indemnitee") shall give notice in writing to the party
from whom indemnification is sought (the "Indemnitor"). The omission by such
Indemnitee to so notify promptly such Indemnitor of any such claim or action
shall not relieve such Indemnitor from any liability which it may have to such
Indemnitee in connection therewith. In case any claim shall be asserted or suit,
action or proceeding commenced against an Indemnitee, the Indemnitor will be
entitled to participate therein, and, to the extent that it may wish, subject to
Indemnitor's written confirmation of its indemnity obligations hereunder with
respect to such claim, to assume the defense or conduct the settlement thereof.
Anything herein to the contrary notwithstanding, Indemnitor shall not be
entitled to settle any such suit, action or proceeding without Indemnitee's
consent, which consent shall be not unreasonably withheld. After notice from the
Indemnitor to the Indemnitee of its election so to assume the defense, conduct
or settlement thereof (along with its written confirmation of its indemnity
obligations), the Indemnitor will not be liable to the Indemnitee for any legal
or other expenses subsequently incurred by the Indemnitee in connection with the
defense, conduct or settlement thereof following such notice. The Indemnitee
will reasonably cooperate with the Indemnitor in connection with any such claim
assumed by the Indemnitor to make available to the Indemnitor all Persons and
all pertinent information under the Indemnitee's control.

         10.5     Limitations of Liability.

                  (a) For purposes of this Agreement, claims for indemnification
for breach of any representation, warranty, covenant or agreement shall not take
into account, give effect to or be qualified by any considerations of
materiality or knowledge which may be expressed in such representation or
warranty.

                  (b) The amount of any claim indemnifiable by an Indemnitor
pursuant to Section 10.2 shall be reduced by the amount of any insurance
proceeds and the amount of any tax benefit resulting from the subject matter of
such claim received by the Indemnitee in respect of such claim.

                                       41

<PAGE>   49

                  (c) A Seller shall not be required to indemnify Buyer under
Section 10.2(b) with respect to claims arising from breaches of such Seller's
representations or warranties hereunder, and Buyer shall not be required to
indemnify any Seller under Section 10.2(a) with respect to Claims arising from
Buyer's representations or warranties hereunder, until the aggregate amount of
all such Claims against Sellers or Buyer, as the case may be, exceeds the
aggregate amount of $350,000, in which case the indemnifying party shall be
liable for the total amount of all of such claims starting from the first
dollar.

                  (d) Sellers' aggregate liability to Buyer for Claims arising
from breaches of Sellers' representations and warranties hereunder shall be
limited to losses or damages not exceeding the aggregate amount of $4,250,000,
as allocated among the Sellers as set forth in Schedule 1.1A, except that such
limit shall not apply to Claims arising out of representations and warranties
relating to title to Assets other than Real Property, Taxes and authority.
Buyer's liability to Sellers for Claims arising out of breaches of its
representations and warranties hereunder shall be limited to losses or damages
not exceeding the aggregate amount of $4,250,000, which shall be allocated among
the Sellers as set forth in Schedule 1.1A.

         10.6     Indemnity Escrow Agreement. At the Closing, Buyer, Sellers and
the Escrow Agent shall execute the Indemnity Agreement, in accordance with which
Buyer will deposit the Indemnity Fund with the Escrow Agent on the Closing Date
in order to provide a fund for the payment of any indemnification to which any
Buyer Indemnitee is entitled under this Section 10; provided, that at any
Seller's request, at the Closing a separate Indemnity Escrow Agreement shall be
entered into with respect to each Seller.

11.      Termination.

         11.1     Termination. This Agreement may be terminated prior to the
Closing only in accordance with the following:

                  (a) At any time by mutual consent of the Sellers and Buyer;

                  (b) By either Sellers or Buyer if the Closing hereunder has
not taken place on or before the Outside Closing Date other than by reason of a
breach or default of any of the covenants or agreements contained in this
Agreement by the party seeking to terminate; provided, that, either party may,
at its sole option, extend such date for an additional three (3) months if as of
such date the conditions to Closing set forth in Sections 7.3 and 8.3 shall have
not been satisfied; or

                  (c) By either Sellers or Buyer, at any time, if the other
party is in material breach or material default of its covenants and agreements
under this Agreement and the party in breach or default does not cure such
breach or default within thirty (30) days after written notice thereof is
delivered to the non-terminating party, provided that the terminating party is
not also in material breach or material default hereunder;

                  (d) By either Sellers or Buyer, if the representations and
warranties of the other party (without regard to the materiality or Material
Adverse Effect qualifiers set forth

                                       42

<PAGE>   50

therein) are not true and correct in all respects (or, with respect to
representations and warranties made as of a specific date, are not true and
correct in all respects as of such date), and such failure is not cured by the
Outside Closing Date, provided that all of the representations and warranties of
the terminating party are true and correct in all respects; provided, that for
purposes of this Section 11.1(d), the representations and warranties of a party
shall be deemed true and correct in all respects to the extent that the
aggregate effect of the inaccuracies in such representations and warranties as
of the applicable times does not constitute a Material Adverse Effect;

                  (e) By Buyer, pursuant to Section 6.12(a), (b) or (c);

                  (f) By Buyer in the event that any of the following shall
occur: (i) as of the date that is one hundred twenty (120) days following the
date hereof, the Limited Partners holding forty percent (40%) or more of the
Interests of any Limited Partnership or any General Partner, as the case may be,
shall have affirmatively disapproved the transactions contemplated by this
Agreement (unless the Limited Partners holding fifty percent (50%) or more of
the Interests of such Limited Partnership or General Partner shall have approved
the transactions contemplated hereby); (ii) as of any date, the Limited Partners
holding fifty percent (50%) or more of the Interests of any Limited Partnership
or General Partner, as the case may be, shall have affirmatively disapproved the
transactions contemplated by this Agreement or approved any Acquisition
Proposal; or (iii) as of the termination of the Voting Period applicable to any
Limited Partnership or General Partner, the Limited Partner Consents of such
Limited Partnership or General Partner shall not have been obtained; provided,
however, that for purposes of clauses (i) and (ii) the percentage of Interests
disapproving the transactions contemplated by this Agreement or approving an
Acquisition Proposal shall not include any disapprovals or approvals (as the
case may be) that shall have been rescinded, revoked or otherwise withdrawn as
of the date of such termination;

                  (g) By Enstar IX, solely with respect to the obligations and
liabilities under this Agreement that relate to Enstar IX, in the event that (i)
the Limited Partner Consents with respect to Enstar IX are not obtained as of
the termination of the Voting Period applicable to Enstar IX or (ii) the Limited
Partners holding fifty percent (50%) or more of the Interests of Enstar IX shall
have affirmatively disapproved the transactions contemplated by this Agreement;
in the event of such termination the Purchase Price shall be reduced by the
amount allocated to Enstar IX, as set forth in Schedule 1.1A; or

                  (h) By Sellers, pursuant to Section 3.5.

         11.2     Breakup Fee; Acquisition Proposals.

                  (a) Each Seller shall pay to Buyer a Breakup Fee (as defined
herein), in accordance with the terms of this Section 11.2, in the event that
(i) this Agreement is terminated by Buyer pursuant to Section 11.1(f), (ii) as
of the date of such termination any Limited Partnership's or General Partner's
Limited Partners shall have given their consent to an Acquisition Proposal
submitted by a third party; and (iii) Buyer shall have performed and complied in
all material respects with all covenants and agreements required to be performed
or

                                       43

<PAGE>   51

complied with by it under this Agreement during the period prior to the first to
occur of (x) the date on which any Limited Partnership's or General Partner's
Limited Partners shall have either disapproved the transactions contemplated by
this Agreement or given their consent to an Acquisition Proposal submitted by a
third party, or (y) the first-occurring date of termination of the Voting Period
of any Limited Partnership or General Partner during which the Limited Partner
Consents for such Limited Partnership or General Partner shall not have been
obtained. Sellers shall pay the Breakup Fee to Buyer by wire transfer of
immediately available funds or by certified check (in accordance with Buyer's
written instructions) within five (5) Business Days following the date of
termination pursuant to Section 11.1(f). For purposes hereof, the "Breakup Fee"
with respect to any Seller means a pro rata portion of the aggregate amount of
$1,500,000, which shall be determined by allocating the amount of $1,500,000
among Sellers based on the allocation of the aggregate Purchase Price among
Sellers.

                  (b) In the event that the Closing does not occur and this
Agreement is terminated with respect to a Seller solely as a result of the
failure to satisfy the conditions to Closing set forth in Sections 7.9 and 8.6
with respect to such Seller, and within six (6) months following the termination
of the applicable Voting Period, such Seller receives an Acquisition Proposal
from a third party, which Acquisition Proposal such Seller intends to submit to
its or its General Partner's respective Limited Partners, as the case may be,
for their approval, such Seller shall notify Buyer in writing of the price and
other material terms of such Acquisition Proposal, and Buyer shall be entitled,
within five (5) Business Days of such notification, to submit a Buyer
Acquisition Proposal.

         11.3     Reimbursement of Expenses. In the event that (i) this
Agreement is terminated by Buyer pursuant to Section 11.1(f), (ii) as of the
date of such termination no Limited Partnership's or General Partner's Limited
Partners shall have given their consent to an Acquisition Proposal submitted by
a third party; and (iii) Buyer shall have performed and complied in all material
respects with all covenants and agreements required to be performed or complied
with by it under this Agreement during the period prior to the first to occur of
(x) the date on which any Limited Partnership's or General Partner's Limited
Partners shall have disapproved the transactions contemplated by this Agreement,
or (y) the first-occurring date of termination of the Voting Period of any
Limited Partnership or General Partner during which the Limited Partner Consents
for such Seller shall not have been obtained, such Seller(s) or General
Partner(s) for which the Limited Partner Consents shall not have been obtained
will reimburse Buyer for Buyer's actual out-of-pocket costs and expenses
incurred in connection with the negotiation and performance of this Agreement;
provided, however, that if Buyer shall consummate this Agreement with those
Seller(s) for which the Limited Partner Consents shall have been obtained, such
reimbursement shall be reduced by the amount of such costs and expenses
allocated to the consummating Sellers based on the allocation of the aggregate
Purchase Price among Sellers.

         11.4     Surviving Obligations. In the event of termination of this
Agreement by either Buyer, Sellers or Enstar IX pursuant to this Section 11,
prompt written notice thereof shall be given to the other party or parties; and
this Agreement shall terminate (or shall terminate solely with respect to Enstar
IX, in the case of termination pursuant to Section 11.1(g)) without further
action by any of the parties hereto, and all obligations of the parties
hereunder with respect to

                                       44

<PAGE>   52

which this Agreement is terminated shall terminate, except for the obligations
set forth in Sections 4.19, 6.4, 11.2, 11.3, 11.5, 12 and 21.

         11.5     Attorney's Fees. Notwithstanding any provision in this
Agreement that may limit or qualify a party's remedies, in the event of a
default by any party that results in a lawsuit or other proceeding for any
remedy available under this Agreement, the prevailing party shall be entitled to
reimbursement from the defaulting party of its reasonable legal fees and
expenses.

12.      Expenses.

         Except as otherwise provided in this Agreement, each party shall pay
its own expenses incurred in connection with the authorization, preparation,
execution and performance of this Agreement, including all fees and expenses of
counsel, accountants, agents and other representatives.

13.      Entire Agreement.

         Buyer and Sellers agree that this Agreement, including the Schedules
and all Exhibits hereto and any other written document or instrument delivered
in connection herewith, constitutes the entire agreement between the parties
with respect to the subject matter hereof and supersedes all prior
understandings and agreements with respect thereto.

14.      Parties Obligated and Benefited.

         Subject to the limitations set forth below, this Agreement will be
binding upon the parties and their respective assigns and successors in interest
and will inure solely to the benefit of the parties and their respective assigns
and successors in interest, and no other Person will be entitled to any of the
benefits conferred by this Agreement. Without the prior written consent of the
other parties, no party will assign any of its rights under this Agreement or
delegate any of its duties under this Agreement. Notwithstanding the foregoing,
Buyer shall have the right, without Sellers' prior consent, (i) to assign this
Agreement to any Affiliate of Buyer, and (ii) to assign this Agreement, insofar
as it relates solely to Enstar IX, to any third party, other than any assignment
described in clause (i) or (ii) that is reasonably expected to cause a delay of
the consummation of the transactions contemplated by this Agreement; provided,
that in the event of any such assignment described in clause (i) or (ii) Buyer
shall remain liable for payment of the full Purchase Price as provided in this
Agreement.

15.      Notices.

         All notices, requests, consents, and other communications under this
Agreement shall be in writing and shall be delivered in person or mailed by
first-class certified or registered mail, return receipt requested, postage
prepaid, by reputable overnight mail or courier or by telecopier, in either
case, with receipt confirmed, addressed as follows:

                                       45
<PAGE>   53

If to any Seller:  Enstar Communications Corporation
                   12444 Powerscourt Drive
                   St. Louis, MO 63131
                   Telephone:  (314) 965-0555
                   Telecopy:   (314) 965-0571
                   Attention:  Ralph G. Kelly, Senior Vice President - Treasurer

                   with a copy to:  Curtis S. Shaw, Esq., Senior Vice President,
                                    General Counsel & Secretary

With a copy to:   Baer Marks & Upham LLP
                  805 Third Avenue
                  New York, NY 10022
                  Telephone:  (212) 702-5700
                  Telecopy:   (212) 702-5941
                  Attention:  Stanley E. Bloch, Esq.

                                       and

If to Buyer:      Multimedia Acquisition Corp.
                  1059 East 10th Street
                  Hazleton, Pennsylvania 18201-3421
                  Telephone:  (570) 455-4251
                  Telecopy:   (570) 459-0963
                  Attention:  Terrence J. Herron, Vice President

With a copy to:   Dow Lohnes & Albertson, PLLC
                  1200 New Hampshire Ave, N.W.
                  Suite 800
                  Washington, D.C. 20036-6802
                  Telephone:  (202) 776-2000
                  Telecopy:   (202) 776-2222
                  Attention:  John H. Pomeroy, Esq.

or at such other address or addresses as may have been furnished in writing by
any party to the others in accordance with the provisions of this Section 15.

Notices and other communications provided in accordance with this Section 15
shall be deemed delivered upon receipt. The furnishing of any notice or
communication required hereunder may be waived in writing by the party entitled
to receive such notice. Failure or delay in delivering copies of any notice to
persons designated above to receive copies shall in no way adversely affect the
effectiveness of such notice or communication.

                                       46

<PAGE>   54

16.      Amendments and Waivers.

         Except as otherwise expressly set forth in this Agreement, any term of
this Agreement may be amended and the observance of any term of this Agreement
may be waived (either generally or in a particular instance and either
retroactively or prospectively), only with the written consent of Sellers and
Buyer. Any amendment or waiver effected in accordance with this Section 16 shall
be binding upon each party. No waivers of or exceptions to any term, condition
or provision of this Agreement, in any one or more instances, shall be deemed to
be, or construed as, a further or continuing waiver of any such term, condition
or provision.

17.      Severability.

         If any provision of this Agreement shall be held or deemed to be, or
shall in fact be, invalid, inoperative or unenforceable because of the conflict
of such provision with any constitution or statute or rule of public policy or
for any other reason, such circumstance shall not have the effect of rendering
any other provision or provisions herein contained invalid, inoperative or
unenforceable, but this Agreement shall be reformed and construed as if such
invalid, inoperative or unenforceable provision had never been contained herein
and such provision reformed so that it would be valid, operative and enforceable
to the maximum extent permitted.

18.      Section Headings and Terms.

         The section headings in this Agreement are for convenience and
reference purposes only and shall not in any way affect the meaning or
interpretation of this Agreement.

19.      Counterparts.

         This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute
one and the same instrument, and shall become effective when counterparts which
together contain the signatures of each party hereto shall have been delivered
to Seller and Buyer.

20.      Governing Law; Consent in Jurisdiction.

         This Agreement shall be governed by and construed and enforced in
accordance with the law (without giving effect to the law governing the
principles of conflicts of law) of the State of New York. Any action to enforce,
arising out of, or relating in any way to, any of the provisions of this
Agreement may be brought and prosecuted in any such court or courts located
within the State of New York as is prohibited by law, and the parties consent to
the jurisdiction of said court or courts located within the State of New York
and to service of process by registered mail, return receipt requested, or by
any other manner provided by law. Each party hereto agrees not to assert, by way
of motion, as a defense or otherwise, in any such action, suit or proceeding any
claim that it is not subject personally to the jurisdiction of such court, that
the action, suit or proceeding is brought in an inconvenient forum, that the
venue of the action, suit or proceeding is improper or that this Agreement, or
any other agreement or transaction related hereto or the subject matter thereof
or thereof may not be enforced in or by such court.

                                       47

<PAGE>   55

21.      Specific Performance.

         The parties hereto acknowledge that money damages are not an adequate
remedy for violations of this Agreement and that any party may, in its sole
discretion, apply to a court of competent jurisdiction for specific performance
or injunctive or other relief (without the posting of any bond or other
security) as such court may deem just and proper in order to enforce this
Agreement or prevent any violation hereof by any of the parties hereto and, to
the extent permitted by applicable Legal Requirements, each party hereof waives
any objection to the imposition of such relief. Any such specific or equitable
relief granted shall not be exclusive and an Indemnitee shall also be entitled
to seek money damages.

                                       48
<PAGE>   56

         IN WITNESS WHEREOF, the parties have executed this Asset Purchase
Agreement as of the date and year first above written.

                                BUYER:

                                MULTIMEDIA ACQUISITION CORP.

                                By: \s\ Terrence J. Herron
                                   ---------------------------------------------
                                   Name:  Terrence J. Herron
                                   Title: Vice President

                                SELLERS:

                                ENSTAR INCOME PROGRAM II-1, L.P.

                                By:  Enstar Communications Corporation,
                                     its General Partner

                                     By: \s\ Marcy Lifton
                                        ----------------------------------------
                                        Name:  Marcy Lifton
                                        Title: Vice President

                                ENSTAR INCOME PROGRAM II-2, L.P.

                                By:  Enstar Communications Corporation,
                                     its General Partner

                                     By: \s\ Marcy Lifton
                                        ----------------------------------------
                                        Name:  Marcy Lifton
                                        Title: Vice President

                                ENSTAR INCOME PROGRAM IV-3, L.P.

                                By:  Enstar Communications Corporation,
                                     its General Partner

                                     By: \s\ Marcy Lifton
                                        ----------------------------------------
                                        Name:  Marcy Lifton
                                        Title: Vice President

<PAGE>   57

                                ENSTAR INCOME/GROWTH PROGRAM
                                SIX-A, L.P.

                                By:  Enstar Communications Corporation,
                                     its General Partner

                                     By: \s\ Marcy Lifton
                                        ----------------------------------------
                                        Name:  Marcy Lifton
                                        Title: Vice President

                                ENSTAR IX, LTD.

                                By:  Enstar Communications Corporation,
                                     its General Partner

                                     By: \s\ Marcy Lifton
                                        ----------------------------------------
                                        Name:  Marcy Lifton
                                        Title: Vice President

                                ENSTAR XI, LTD.

                                By:  Enstar Communications Corporation,
                                     its General Partner

                                     By: \s\ Marcy Lifton
                                        ----------------------------------------
                                        Name:  Marcy Lifton
                                        Title: Vice President

                                ENSTAR IV/PBD SYSTEMS VENTURE

                                By:  Enstar Income Program IV-I, L.P., General
                                     Partner

                                     By: Enstar Communications Corporation,
                                         its General Partner

                                         By: \s\ Marcy Lifton
                                           -------------------------------------
                                            Name:  Marcy Lifton
                                            Title: Vice President

<PAGE>   58

                                By: Enstar Income Program IV-2, L.P., General
                                    Partner

                                    By: Enstar Communications Corporation,
                                        its General Partner

                                        By: \s\ Marcy Lifton
                                           -------------------------------------
                                           Name:  Marcy Lifton
                                           Title: Vice President

                                ENSTAR CABLE OF CUMBERLAND VALLEY

                                By: Enstar Income Growth Program  Five-A,
                                    L.P., General Partner

                                    By: Enstar Communications Corporation,
                                        its General Partner

                                        By: \s\ Marcy Lifton
                                           -------------------------------------
                                           Name:  Marcy Lifton
                                           Title: Vice President

                                By: Enstar Income Growth Program  Five-B,
                                    L.P., General Partner

                                    By: Enstar Communications Corporation,
                                        its General Partner

                                        By: \s\ Marcy Lifton
                                           -------------------------------------
                                           Name:  Marcy Lifton
                                           Title: Vice President

<PAGE>   59

                                ENSTAR CABLE OF MACOUPIN COUNTY

                                By: Enstar Income Program IV-I, L.P.,
                                    General Partner

                                    By: Enstar Communications Corporation,
                                        its General Partner

                                        By: \s\ Marcy Lifton
                                           -------------------------------------
                                           Name:  Marcy Lifton
                                           Title: Vice President

                                By: Enstar Income Program IV-2, L.P.,
                                    General Partner

                                    By: Enstar Communications Corporation,
                                        its General Partner

                                        By: \s\ Marcy Lifton
                                           -------------------------------------
                                           Name:  Marcy Lifton
                                           Title: Vice President

                                By: Enstar Income Program IV-3, L.P.,
                                    General Partner

                                    By: Enstar Communications Corporation,
                                        its General Partner

                                        By: \s\ Marcy Lifton
                                           -------------------------------------
                                           Name:  Marcy Lifton
                                           Title: Vice President

                                Solely for purposes of Sections 6.6(d) and 6.15:

                                CHARTER COMMUNICATIONS, INC.

                                By: \s\ Marcy Lifton
                                   ---------------------------------------------
                                   Name:  Marcy Lifton
                                   Title: Vice President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00013-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00013-of-00352.parquet"}]]