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                                                                     EXHIBIT 4.1

                  SECOND RESTATED CERTIFICATE OF INCORPORATION

                                       OF

                           METRETEK TECHNOLOGIES, INC.

                         PURSUANT TO SECTION 245 OF THE

                GENERAL CORPORATION LAW OF THE STATE OF DELAWARE

         Metretek  Technologies,  Inc., a corporation  organized and existing
under the General Corporation Law of the State of Delaware (the "Corporation"),
does hereby certify as follows:

         1.       The name of the Corporation is Metretek Technologies, Inc.

         2.       The  Corporation  was  originally  incorporated  in the State
of Delaware under the name Marcum Natural Gas Services, Inc., and its original
Certificate of Incorporation was filed with the Secretary of State of the State
of Delaware on April 5, 1991.

         3.       This Second Restated Certificate of Incorporation was duly
adopted by the Board of Directors of the Corporation in accordance with the
provisions of Section 245 of the General Corporation Law of the State of
Delaware and only restates and integrates and does not further amend the
provisions of the Restated Certificate of Incorporation of the Corporation, as
heretofore amended or supplemented, and there is no discrepancy between those
provisions and the provisions of this Second Restated Certificate of
Incorporation.

         4.       The text of the Restated  Certificate of Incorporation of the
Corporation, as heretofore amended or supplemented, is hereby restated to read
in its entirety as follows:

         FIRST:   The name of the corporation is Metretek Technologies, Inc.

         SECOND: The address of its registered office in the State of Delaware
is Corporation Trust Center, 1209 Orange Street, in the City of Wilmington,
County of New Castle. The name of its registered agent at such address is The
Corporation Trust Company.

         THIRD: The nature of the business or purposes to be conducted or
promoted is to engage in any lawful act or activity for which corporations may
be organized under the General Corporation Law of Delaware.

         FOURTH: The total number of shares of all classes of stock which the
Corporation shall have authority to issue is Twenty-Eight Million Five Hundred
Thousand (28,500,000) shares, consisting of two classes: Twenty-Five Million
(25,000,000) shares of Common Stock, par value $.01 per share, and Three Million
Five Hundred Thousand (3,500,000) shares of Preferred Stock, par value $.01 per
share.

         Subject to the provisions of applicable law, this Article FOURTH, and
the rights, if any, of the holders of the Preferred Stock, or any series
thereof, from time to time outstanding, the holders of the outstanding shares of
Common Stock shall have and possess exclusive voting power and right for the
election of directors and for all other purposes, with each holder of record of
shares of Common Stock being entitled to one vote for each share of Common Stock
standing in such holder's name on the books of the Corporation in the election
of directors and on all other matters presented to the stockholders. Holders of
Common Stock shall not have cumulative voting rights in the election of
directors. Subject to the preferential dividend rights, if any, of the holders
of Preferred Stock, or any series thereof, from time to time outstanding, the
holders of Common Stock shall be entitled to receive such dividends as may be
declared by the Board of Directors of the Corporation from time to time. Subject
to the preferential liquidation rights, if any, of the holders of Preferred
Stock, or any series thereof, from time to time outstanding, in the event of any
voluntary or involuntary liquidation, dissolution or winding up of, or any
distribution of the assets of, the Corporation, the holders of shares of Common
Stock shall be entitled to receive all of the assets of the Corporation
available for distribution to its stockholders ratably in proportion to the
number of shares of Common Stock held by them.

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         The shares of Preferred Stock may be issued from time to time in one or
more series. The Board of Directors is hereby vested with authority, within the
limitations and restrictions set forth in this Article FOURTH, to determine or
alter by resolution or resolutions the powers, preferences, and relative,
participating, optional or other special rights, and any qualifications,
limitations or restrictions thereof, including, without limitation, the voting
rights, dividend rate, conversion or exchange rights, redemption rights and
price (including sinking fund provisions) and liquidation preference, of any
wholly issued series of shares of Preferred Stock, and to fix the number of
shares constituting any such series and the designation thereof, and to increase
or decrease the number of shares of any such series subsequent to the issuance
of shares of that series (but not below the number of shares of such series then
outstanding). In case the number of shares of any such series shall be so
decreased, the shares constituting such decrease shall resume the status which
they had prior to the adoption of the resolution or resolutions originally
fixing the number of shares of such series.

         The respective designations, powers, preferences, rights,
qualifications, limitations and restrictions granted to and imposed on the two
currently authorized series of Preferred Stock, the Series B Preferred Stock and
the Series C Preferred Stock, are as follows:

A.       SERIES B PREFERRED STOCK

         1. DESIGNATION. A total of 1,000,000 shares of the Corporation's
Preferred Stock shall be designated as a class known as Series B Preferred
Stock, par value $0.01 per share (the "Convertible Preferred Stock"). All of the
preferential amounts to be paid to the holders of the Convertible Preferred
Stock as provided in this Section A shall be paid or set apart for payment
before the payment or setting apart for payment of any amount for, or the
distribution of any property of the Corporation to, the holders of any other
equity securities of the Corporation, whether now or hereafter authorized.

         2. ELECTION OF DIRECTORS.

            (a) So long as an aggregate of at least 2,000 shares of
Convertible Preferred Stock remain outstanding, the holders of outstanding
shares of Convertible Preferred Stock shall, voting together as a separate
class, be entitled to elect one (1) Director. Such Director shall be the
individual receiving the greatest number of affirmative votes of the outstanding
shares of Convertible Preferred Stock (the "Convertible Preferred Stock Director
Designee"), with each share of Convertible Preferred Stock entitled to one (1)
vote, and with votes cast against such person and votes withheld having no legal
effect. Each Director so elected shall hold office until a new Convertible
Preferred Stock Director Designee is elected Director as provided below,
provided that such Director shall in any event cease to hold office at such time
as the holders of Convertible Preferred Stock are no longer entitled to elect a
Director in accordance with this Section A.2. The election of the Convertible
Preferred Stock Director Designee by the holders of the Convertible Preferred
Stock shall occur (i) at the annual meeting of holders of Common Stock, (ii) if
there is then no Convertible Preferred Stock Director Designee serving as a
Director, at any special meeting of holders of capital stock, (iii) if there is
no Convertible Preferred Stock Director Designee serving as a Director, at any
special meeting of holders of Convertible Preferred Stock called by holders of a
majority of the outstanding shares of Convertible Preferred Stock (a "Majority
Interest") or (iv) in lieu of an election at a meeting, by the written consent
of holders of not less than sixty-six and two-thirds percent (66 2/3%) of the
outstanding shares of Convertible Preferred Stock (a "Two Thirds Interest"). If
at any time when any share of Convertible Preferred Stock is outstanding the
Convertible Preferred Stock Director Designee should cease to be a Director for
any reason, the vacancy shall only be filled by the vote or written consent of
holders of the outstanding shares of Convertible Preferred Stock, voting
together as a separate class, in the manner and on the basis specified above.
The holders of a majority of the outstanding shares of Convertible Preferred
Stock, may, in their sole discretion, determine to elect fewer than one (1)
Convertible Preferred Stock Director Designee from time to time, and during any
such period the Board of Directors nonetheless shall be deemed duly constituted.
The holders of Common Stock and the holders of any other class or series of
capital stock of the Corporation with the right to vote in the election of
directors shall be entitled to elect the remaining members of the Board of
Directors.

         (b) Notwithstanding the provisions of paragraph 2(a) above, in the
event that the Corporation fails for any reason to redeem the Convertible
Preferred Stock in full in accordance with the terms of Section A.5(a) hereof,
then the number of Directors on the Corporation's Board of Directors shall
immediately and without any action taken by the Corporation or any of its
stockholders, be increased by the minimum such minimum number as is necessary to
ensure that the directors elected under this paragraph 2(b) (the "Default
Preferred Directors") will constitute a majority of the Corporation's Board of
Directors, and the holders of the Convertible Preferred Stock shall be entitled
to elect the Default Preferred Directors, with each share of Convertible
Preferred Stock entitled to one (1) vote. Each Default Preferred Director so
elected shall hold office in accordance with the terms for directors elected at
such meeting as provided by law, the Certificate of Incorporation, as amended,
or the by-laws of the

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Corporation in effect at the time, provided that such Director shall in any
event cease to hold office at such time as the holders of Convertible Preferred
Stock are no longer entitled to elect Default Preferred Directors in accordance
with this Section A.2(b). The election of the Default Preferred Directors by the
holders of the Convertible Preferred Stock shall occur (i) at the annual meeting
of holders of capital stock, (ii) at any special meeting of holders of Common
Stock, (ii) if there is then no Convertible Preferred Stock Director Designee
serving as a Director, at any special meeting of holders of capital stock, (iii)
if there is then no Convertible Preferred Stock Director Designee serving as a
Director, at any special meeting of holders of Convertible Preferred Stock
called by a Majority Interest, or (iv) in lieu of an election at a meeting, by
the written consent of holders of a Two Thirds Interest. If at any time when any
share of Convertible Preferred Stock is outstanding any Default Preferred
Director should cease to be a director for any reason, the vacancy shall only be
filled by the vote or written consent of holders of the outstanding shares of
Convertible Preferred Stock, voting together as a separate class, in the manner
and on the basis specified above. The holders of a majority of the outstanding
shares of Convertible Preferred Stock may, in their sole discretion, determine
to elect fewer than all of the Default Preferred Directors from time to time,
and during any such period the Board of Directors nonetheless shall be deemed
duly constituted. Upon full payment by the Corporation of all amounts payable to
the holders of the Convertible Preferred Stock pursuant to Section A.5(a)
hereof, including any interest thereon, which the Board of Directors shall cause
to be made by the Corporation as soon as is lawful and practical to be made, the
right of the holders of Convertible Preferred Stock to elect Default Preferred
Directors under this paragraph (2) shall terminate, the terms of all such
Default Preferred Directors shall forthwith cease, and the number of Directors
shall forthwith be reduced by an amount equal to the number of Default Preferred
Directors which the holders of Convertible Preferred Stock were previously
entitled to elect hereunder.

         (c) Whenever the holders of Convertible Preferred Stock are entitled
to take any action under either paragraph (a) or (b) of this Section A.2(b), a
Majority Interest shall have the right to fix any record date and the date, time
and location, to the extent applicable, of any meeting or written consent
referred to therein and to send any required notices. If a Majority Interest
requests that the Corporation take any of such actions, it will do so
immediately. The Corporation will not take any action, including amending its
Certificate of Incorporation or bylaws, which is inconsistent with the intent or
purposes of Section A.2.

         3. DIVIDENDS. The holders of shares of Convertible Preferred Stock
shall be entitled, in preference to the holders of any and all other classes of
capital stock of the Corporation, to receive, when, as and if declared by the
Board of Directors, out of funds legally available therefor, cumulative
dividends on the Convertible Preferred Stock in cash at the rate per annum of
eight percent (8%) (the "Dividend Rate") of the Initial Liquidation Preference
or $80.00 per share of Convertible Preferred Stock (adjusted appropriately for
stock splits, stock dividends, recapitalizations and the like with respect to
the Convertible Preferred Stock, and subject to adjustment pursuant to Section
A.5(e) hereof) as of the original issuance date of the Convertible Preferred
Stock (for any such issuance, the "Convertible Preferred Original Issuance
Date"), subject to proration for partial years on the basis of a 365-day year,
compounded quarterly on March 31, June 30, September 30 and December 31 of each
year (the "Convertible Cumulative Dividend"). Such dividends will accumulate
commencing as of the Convertible Preferred Original Issuance Date and shall be
cumulative, to the extent unpaid, whether or not they have been declared and
whether or not the Corporation may legally pay the dividends. Such dividends
shall become due and payable with respect to any shares of Convertible Preferred
Stock as provided in Sections A.4, A.5 and A.6. Dividends paid in an amount less
than the total amount of such dividends at the time accumulated and payable on
all outstanding shares of Convertible Preferred Stock shall be allocated pro
rata on a share-by-share basis among all such shares at the time outstanding. So
long as at least 1,000 shares of Convertible Preferred Stock are outstanding and
the Convertible Cumulative Dividends have not been paid in full: (a) no dividend
whatsoever (other than dividends paid in stock) shall be paid or declared, and
no distribution shall be made, on any Common Stock or other capital stock of the
Corporation ranking with regard to dividend rights, rights upon a Liquidation
Event (as defined in Section A.4 below) or an Extraordinary Transaction (as
defined in Section A.5(a)(ii) below) or redemption rights junior to or on a
parity with the Convertible Preferred Stock; and (b) except as provided in
Section A.8(c), no shares of Common Stock or other capital stock of the
Corporation ranking with regard to dividend rights, rights upon a Liquidation
Event or an Extraordinary Transaction or redemption rights junior to or on a
parity with the Convertible Preferred Stock shall be purchased, redeemed or
acquired by the Corporation and no monies shall be paid into or set aside or
made available for a sinking fund for the purchase, redemption or acquisition
thereof.

         In addition to Convertible Cumulative Dividends, the holders of
Convertible Preferred Stock shall be entitled to receive dividends out of funds
legally available therefor at such times and in such amounts as the Board of
Directors may determine in its sole discretion; PROVIDED, HOWEVER, that no cash
or Common Stock dividend may be declared or paid on any shares of Common Stock
unless at the same time a dividend is declared or paid on all outstanding shares
of Convertible Preferred Stock, with holders of Convertible Preferred Stock and
Common Stock sharing in any such dividends as if they constituted a single class
of stock and with each holder of shares of

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Convertible Preferred Stock entitled to receive such dividends based on the
number of shares of Common Stock into which such shares of Convertible Preferred
Stock are then convertible in accordance with Section A.6 hereof.

         4. LIQUIDATION.

            (a) LIQUIDATION PREFERENCE. Upon any liquidation, dissolution
or winding up of the Corporation and its subsidiaries, whether voluntary or
involuntary (a "Liquidation Event"), each holder of outstanding shares of
Convertible Preferred Stock shall be entitled to be paid out of the assets of
the Corporation available for distribution to stockholders, whether such assets
are capital, surplus or earnings, and before any amount shall be paid or
distributed to the holders of Common Stock or of any other stock ranking on
liquidation junior to the Convertible Preferred Stock, an amount in cash, equal
to (i) $1,000 per share of Convertible Preferred Stock held by such holder
(adjusted appropriately for stock splits, stock dividends, recapitalizations and
the like with respect to the Convertible Preferred Stock) (the "Initial
Liquidation Preference"), plus (ii) any accumulated but unpaid dividends to
which such holder of outstanding shares of Convertible Preferred Stock is then
entitled, if any, pursuant to Sections A.3, A.5(e) and A.5(f) hereof (the sum of
clauses (i) and (ii) being referred to herein as the "Convertible Liquidation
Preference Amount"); PROVIDED, HOWEVER, that if upon any Liquidation Event, the
amounts payable with respect to the Convertible Liquidation Preference Amount
are not paid in full, the holders of the Convertible Preferred Stock shall share
ratably in any distribution of assets in proportion to the full respective
preferential amounts to which they are entitled; and provided further, however,
that if upon any Liquidation Event the holders of the outstanding shares of
Convertible Preferred Stock would have received more than the Convertible
Liquidation Preference Amount in the event their shares were converted into
Common Stock immediately prior to such Liquidation Event and such shares of
Common Stock pursuant to Section A.6(a) received a liquidating distribution or
distributions from the Corporation, then each holder of Convertible Preferred
Stock shall receive as a distribution from the Corporation in connection with
such Liquidation Event an amount equal to the amount that would be paid if such
holder's shares of Convertible Preferred Stock were converted into Common Stock
immediately prior to such Liquidation Event pursuant to A.6(a). The provisions
of this Section A.4 shall not in any way limit the right of the holders of
Convertible Preferred Stock to elect to convert their shares of Convertible
Preferred Stock into Common Stock pursuant to Section A.6 prior to or in
connection with any Liquidation Event. Upon any Liquidation Event, holders of
fractional shares of Convertible Preferred Stock shall receive proportionate
payments in respect thereof.

            (b) NOTICE. Prior to the occurrence of any Liquidation Event,
the Corporation will furnish each holder of Convertible Preferred Stock notice
in accordance with Section A.9 hereof, together with a certificate prepared by
the chief financial officer of the Corporation describing in detail the facts of
such Liquidation Event, stating in detail the amount(s) per share of Convertible
Preferred Stock each holder of Convertible Preferred Stock would receive
pursuant to the provisions of Section A.4(a) hereof pursuant to clauses (i),
(ii) and (iii) of the proviso of Section A.4(a) and stating in detail the facts
upon which such amounts were determined.

         5. REDEMPTION; PREFERENTIAL PAYMENT IN EXTRAORDINARY TRANSACTIONS.

            (a) REDEMPTION.

                (i)  TIME BASED REDEMPTION. On December 9, 2004, the Corporation
shall redeem all of the outstanding shares of Convertible Preferred Stock held
by each holder of Convertible Preferred Stock. The redemption price for each
share of Convertible Preferred Stock redeemed pursuant to this Section A.5(a)(i)
shall be the per share Convertible Liquidation Preference Amount (as defined in
Section A.4(a) above) (the "Convertible Redemption Price").

                (ii) REDEMPTION UPON EXTRAORDINARY TRANSACTIONS. Upon the
occurrence of an "Extraordinary Transaction," the holders of not less than a
Majority Interest may elect (i) to have the Convertible Preferred Stock redeemed
in connection with the Extraordinary Transaction or (ii) otherwise to
participate in the Extraordinary Transaction.

         "Extraordinary Transaction" means any of the following: (A) a merger or
consolidation of the Corporation with or into another corporation (with respect
to which less than a majority of the outstanding voting power of the surviving
or consolidated corporation is held by stockholders of the Corporation
immediately prior to such event), (B) the sale or transfer of all or
substantially all of the properties and assets of the Corporation and its
subsidiaries, (C) any purchase by any party (or group of affiliated parties) of
shares of capital stock of the Corporation (either through a negotiated stock
purchase or a tender for such shares), the effect of which is that such party
(or group of affiliated parties) that did not beneficially own a majority of the
voting power of the outstanding shares of capital stock of the Corporation
immediately prior to such purchase beneficially owns at least a majority of such
voting

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power immediately after such purchase, or (D) the redemption or repurchase of
shares representing a majority of the voting power of the outstanding shares of
capital stock of the Corporation immediately prior to such redemption.

         As a condition to the effectiveness of any Extraordinary Transaction,
unless the holders of Convertible Preferred Stock shall have elected to convert
their shares of Convertible Preferred Stock into Common Stock in accordance with
the provisions of Section A.6 prior to the effective date of such Extraordinary
Transaction, the Corporation shall either (1) if redemption is elected, on the
effective date of such Extraordinary Transaction, redeem all (but not less than
all) of the outstanding shares of Convertible Preferred Stock held by each
holder of Convertible Preferred Stock for an amount equal to the Convertible
Redemption Price, such amount to be payable in cash or, at the election of such
holder or holders, in the same form of consideration as is paid to the holders
of Common Stock in such Extraordinary Transaction, or (2) if the holders elect
to participate in the relevant transaction (such as a merger) on terms
acceptable to them, take such actions as shall be sufficient to facilitate such
participation (including executing a merger agreement including an exchange
ratio reflecting the provisions hereof) (on terms giving such holders the right
to the Convertible Redemption Price as a preferential amount, in which event
such amount shall be paid in cash or, at the election of such holders, in the
same form of consideration as is paid to the holders of Common Stock in such
Extraordinary Transaction, but in preference to and before any amount is paid or
otherwise distributed to the holders of the Common Stock or any other stock
ranking with regard to dividend rights, rights upon a Liquidation Event or an
Extraordinary Transaction, or redemption rights junior to the Convertible
Preferred Stock, in which event such preferential amount shall be deemed to have
been distributed to the holders of the Convertible Preferred Stock as if in a
Liquidation Event). For purposes of this Section A.5(a)(ii), a sale of
substantially all of the assets of the Corporation and its subsidiaries shall
mean the sale or other disposition other than in the ordinary course of business
of more than 75% of such assets, by reference to the book value or the fair
market value of such assets, determined on a consolidated basis under generally
accepted accounting principles.

         Notwithstanding the foregoing, if upon any Extraordinary Transaction
the holders of the outstanding shares of Convertible Preferred Stock would
receive more than the Convertible Redemption Price in the event their shares
were converted into Common Stock immediately prior to such Extraordinary
Transaction and such shares of Common Stock were purchased or otherwise
participated in such Extraordinary Transaction, then each holder of Convertible
Preferred Stock shall receive from the Corporation or the relevant purchaser, as
applicable, upon the election by a Majority Interest to redeem or otherwise
participate in such Extraordinary Transaction, an amount equal to the amount per
share that would be paid if the shares of Common Stock receivable upon
conversion of the Convertible Preferred Stock were being acquired in the
Extraordinary Transaction at the same price per share as is paid for other
shares of Common Stock, which amount shall be paid in the same form of
consideration as is paid to holders of Common Stock, as if each share of
Convertible Preferred Stock had been converted into the number of shares of
Common Stock issuable upon the conversion of such share of Convertible Preferred
Stock immediately prior to such Extraordinary Transaction. Also, notwithstanding
the foregoing, in connection with the acquisition of the Convertible Preferred
Stock in an Extraordinary Transaction which is to be accounted for by the
acquiring entity as a pooling of interests, the holders of shares of Convertible
Preferred Stock shall receive upon such election to redeem or otherwise
participate, if so required for the application of such accounting treatment,
and in lieu of cash, the number of shares of common stock of such entity having
a value equal to the amount otherwise payable to the holders of Convertible
Preferred Stock in such Extraordinary Transaction pursuant to this Section
A.5(a)(ii) and having the same registered status or registration rights as any
other shares in such transaction. The Corporation shall not participate in any
Extraordinary Transaction or make or agree to have made any payments to the
holders of shares of Common Stock or any other stock ranking junior to the
Convertible Preferred Stock unless the holders of the Convertible Preferred
Stock shall have received the full preferential amount to which they are
entitled hereunder in an Extraordinary Transaction.

         The foregoing election shall be made by such holders giving the
Corporation and each other holder of Convertible Preferred Stock not less than
five (5) business days prior written notice, which notice shall set forth the
date for such redemption or participation in an Extraordinary Transaction, as
applicable. The provisions of this Section A.5 shall not in any way limit the
right of the holders of Convertible Preferred Stock to elect to convert their
shares into shares of Common Stock pursuant to Section A.6 prior to or in
connection with any Extraordinary Transaction.

                (iii) REDEMPTION AT THE OPTION OF THE CORPORATION. In the event
that, at any time commencing on the Anniversary Date (as defined in Section
A.7(a)), the market price of the Common Stock equals or exceeds 200% of the
Conversion Price then in effect for 20 out of a period of 30 consecutive trading
days (any period of 30 days where this condition has been met being referred to
herein as a "Redemption Period"), then the Corporation shall have the right, in
its discretion during any Redemption Period or within the 30 days immediately
following the Redemption Period, to send 30 days' prior written notice to each
holder of Convertible Preferred Stock and after such 30-day period, to redeem
all outstanding shares of Convertible Preferred Stock at a redemption

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price equal to the Convertible Redemption Price; provided, that no such
redemption may be effected if at any time between the giving of the notice of
redemption and the date on which redemption is to occur there is not in effect a
registration statement covering the sale by the holders thereof of all shares of
Common Stock issuable upon conversion of the Convertible Preferred Stock.

            (b) VALUATION OF DISTRIBUTION SECURITIES. Any securities or
other consideration to be delivered to the holders of the Convertible Preferred
Stock, if so elected in connection with a redemption or upon any Extraordinary
Transaction in accordance with the terms hereof, shall be valued as follows:

                (i)  If traded on a nationally recognized securities exchange or
inter-dealer quotation system, the value shall be deemed to be the average of
the closing prices of the securities on such exchange or system over the 30-day
period ending three (3) business days prior to the closing of such Extraordinary
Transaction;

                (ii) If traded over-the-counter, the value shall be deemed to be
the average of the closing bid prices over the 30-day period ending three (3)
business days prior to the closing of such Extraordinary Transaction; and

                (iii) If there is no active public market, the value shall be
the fair market value thereof, as mutually determined by the Corporation and the
holders of not less than a Two Thirds Interest, provided that if the Corporation
and the holders of not less than a Two Thirds Interest are unable to reach
agreement, then by independent appraisal by a mutually agreed to investment
banker, the fees of which shall be paid by the Corporation.

            (c) NOTICE BY CORPORATION. Prior to the occurrence of any
Extraordinary Transaction, the Corporation will furnish each holder of
Convertible Preferred Stock notice in accordance with Section A.9 hereof,
together with a certificate prepared by the chief financial officer of the
Corporation describing in detail all material terms of such Extraordinary
Transaction, including without limitation the consideration to be delivered in
connection with such Extraordinary Transaction, the valuation of the Corporation
at the time of such Extraordinary Transaction and the identities of the parties
to the Extraordinary Transaction.

            (d) PURCHASE DATE AND PRICE. Upon the election of the holders of not
less than a Majority Interest to cause the Corporation to redeem Convertible
Preferred Stock or otherwise to participate in an Extraordinary Transaction
pursuant to Section A.5(a)(ii), each holder of Convertible Preferred Stock shall
be deemed to have elected to cause the shares held by such holder to be so
redeemed or to so participate. Any date upon which a redemption or other
acquisition is to occur in accordance with Section A.5(a) shall be referred to
as a "Redemption Date." If at a Redemption Date shares of Convertible Preferred
Stock are unable to be redeemed (as contemplated by Section A.5(e) below), then
holders of Convertible Preferred Stock shall also be entitled to interest and
dividends pursuant to Sections A.5(e) and (f) below. The aggregate applicable
redemption price elected to be payable in cash pursuant to Section A.5(a) shall
be payable in cash in immediately available funds to the respective holders on
the Redemption Date (subject to Section A.5(e)), except as otherwise
contemplated by Section A.5(a)(ii). Upon any redemption as provided herein,
holders of fractional shares shall receive proportionate amounts in respect
thereof. Until the aggregate applicable redemption price has been paid for all
shares of Convertible Preferred Stock being redeemed or acquired: (A) no
dividend whatsoever shall be paid or declared, and no distribution shall be
made, on any capital stock of the Corporation; and (B) except as permitted by
Section A.8(c), no shares of capital stock of the Corporation (other than in
accordance with this Section A.5) shall be purchased, redeemed or acquired by
the Corporation and no monies shall be paid into or set aside or made available
for a sinking fund for the purchase, redemption or acquisition thereof.

            (e) REDEMPTION PROHIBITED. If, at a Redemption Date, the Corporation
is prohibited under Section 160 of the General Corporation Law of the State of
Delaware from redeeming all shares of Convertible Preferred Stock for which
redemption is required hereunder, then it shall redeem such shares on a pro-rata
basis among the holders of Convertible Preferred Stock in proportion to the full
respective redemption amounts to which they are entitled hereunder to the extent
possible and shall redeem the remaining shares to be redeemed as soon as the
Corporation is not prohibited from redeeming some or all of such shares under
Section 160 of the General Corporation Law of the State of Delaware, subject to
the last paragraph of Section A.8. Any shares of Convertible Preferred Stock not
redeemed shall remain outstanding and entitled to all of the rights and
preferences provided in this Section A. The Corporation shall take such action
as shall be necessary or appropriate to review and promptly remove any
impediment to its ability to redeem Convertible Preferred Stock under the
circumstances contemplated by this Section A.5(e). In the event that the
Corporation fails for any reason to redeem shares for which redemption is
required pursuant to this Section A.5, including without limitation due to a
prohibition of such redemption under the General Corporation Law of the State of
Delaware, then during the period from the applicable Redemption Date

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through the date on which such shares are redeemed, the applicable Dividend Rate
shall increase by 2% per annum and shall increase by an additional .5% at the
end of each six (6) month period thereafter until the Redemption Price (as so
increased) is paid in full, subject to a maximum rate of 15% per annum.

            (f) DIVIDEND AFTER REDEMPTION DATE. From and after a Redemption
Date, no shares of Convertible Preferred Stock subject to redemption shall be
entitled to dividends, if any, as contemplated by Section A.3; PROVIDED,
HOWEVER, that in the event that shares of Convertible Preferred Stock are unable
to be redeemed and continue to be outstanding in accordance with Section A.5(e),
such shares shall continue to be entitled to dividends and interest thereon as
provided in Sections A.3 and A.5(e) until the date on which such shares are
actually redeemed by the Corporation.

            (g) SURRENDER OF CERTIFICATES. Upon receipt of the applicable
Convertible Redemption Price by certified check or wire transfer (in the event
such price is to be paid in cash), each holder of shares of Convertible
Preferred Stock to be redeemed shall surrender the certificate or certificates
representing such shares to the Corporation, duly assigned or endorsed for
transfer (or accompanied by duly executed stock powers relating thereto), or, in
the event the certificate or certificates are lost, stolen or missing, shall
deliver an affidavit or agreement satisfactory to the Corporation to indemnify
the Corporation from any loss incurred by it in connection therewith (an
"Affidavit of Loss") with respect to such certificates at the principal
executive office of the Corporation or the office of the transfer agent for the
Convertible Preferred Stock or such office or offices in the continental United
States of an agent for redemption as may from time to time be designated by
notice to the holders of Convertible Preferred Stock, and each surrendered
certificate shall be canceled and retired; PROVIDED, HOWEVER, that if the
Corporation is prohibited from redeeming all shares of Convertible Preferred
Stock as provided in Section A.5(e) or such redemption is a partial redemption
of the shares of Convertible Preferred Stock held by a holder, the holder shall
not be required to surrender said certificate(s) to the Corporation until said
holder has received a new stock certificate for those shares of Convertible
Preferred Stock not so redeemed.

            (h) FURTHER RESTRICTIONS ON REDEMPTION. Notwithstanding anything
herein to the contrary, the Convertible Preferred Stock shall not be redeemed
hereunder unless (i) all obligations of the Corporation under the Loan and
Security Agreement dated April 14, 1998 among the Corporation, certain of its
subsidiaries, and National Bank of Canada, as agent and as a lender, and the
other lenders from time to time party thereto (collectively, the "Lender") shall
have been or is concurrently paid in full, or (ii) the Lenders shall have
consented to such redemption. If the Corporation is prohibited from redeeming
the Convertible Preferred Stock hereunder, the holders of Convertible Preferred
Stock shall be entitled to the provisions of Section A.5(e) and A.5(f) hereof.

         6. CONVERSION. The holders of the Convertible Preferred Stock shall
have the following  conversion rights:

            (a) CONVERSION UPON ELECTION OF HOLDER. Any holder of shares of
Convertible Preferred Stock shall be entitled at any time after June 9, 2000,
upon written election and without the payment of any additional consideration,
to cause any or all of such holder's shares of Convertible Preferred Stock to be
converted into the number of shares of Common Stock resulting from dividing the
Conversion Value (as defined in this Section A.6(a)) per share in effect for the
Convertible Preferred Stock at the time of conversion, as the numerator, by the
per share Conversion Price (as defined in this Section A.6(a)) of the
Convertible Preferred Stock, as the denominator, with fractional shares treated
proportionately. The number of shares of Common Stock into which a share of a
Convertible Preferred Stock is convertible is hereinafter referred to as the
"Conversion Rate." Upon the filing of the Certificate of Designation of the
Series B Preferred Stock with the Secretary of State of Delaware the "Conversion
Price" per share of Convertible Preferred Stock shall be $5.9334, and the per
share "Conversion Value" of Convertible Preferred Stock shall be the sum of
$1,000 plus per share accumulated but unpaid dividends on the Convertible
Preferred Stock at the time of conversion. The Conversion Price per share of
Convertible Preferred Stock and the Conversion Rate shall be subject to
adjustment from time to time as provided in Section A.7 hereof.

            (b) PROCEDURE FOR CONVERSION. Upon election to convert pursuant to
Section A.6(a), the relevant holder of Convertible Preferred Stock shall
surrender the certificate or certificates representing the Convertible Preferred
Stock being converted, duly assigned or endorsed for transfer to the Corporation
(or accompanied by duly executed stock powers relating thereto), at the
principal executive office of the Corporation or the offices of the transfer
agent for the Convertible Preferred Stock or such office or offices in the
continental United States of an agent for conversion as may from time to time be
designated by notice to the holders of the Convertible Preferred Stock by the
Corporation, or shall deliver an Affidavit of Loss with respect to such
certificates. The issuance by the Corporation of Common Stock upon a conversion
of Convertible Preferred Stock pursuant to Section A.6(a) hereof shall be
effective as of the surrender of the certificate or certificates for the

<PAGE>   8

Convertible Preferred Stock to be converted, duly assigned or endorsed for
transfer to the Corporation (or accompanied by duly executed stock powers
relating thereto), or as of the delivery of an Affidavit of Loss. Upon surrender
of a certificate representing Convertible Preferred Stock for conversion, or
delivery of an Affidavit of Loss, the Corporation shall issue and send by hand
delivery, by courier or by first class mail (postage prepaid) to the holder
thereof or to such holder's designee, at the address designated by such holder,
certificates for the number of shares of Common Stock to which such holder shall
be entitled upon conversion (rounded to the nearest whole share) plus, if
applicable, a cash payment in the amount of any accumulated but unpaid dividends
and other amounts as contemplated by Section A.6(a) in respect of the shares of
Convertible Preferred Stock. The issuance of certificates for Common Stock upon
conversion of Convertible Preferred Stock will be made without charge to the
holders of such shares for any issuance tax in respect thereof or other costs
incurred by the Corporation in connection with such conversion and the related
issuance of such stock. If a conversion of Convertible Preferred Stock upon a
Liquidation Event or an Extraordinary Transaction occurs and the holders of the
Common Stock issued on such conversion elect to participate, the Corporation
shall make appropriate provisions for the Common Stock issued upon such
conversion to be treated on the same basis as all other Common Stock in such
Liquidation Event or Extraordinary Transaction.

            (c) RESERVATION OF STOCK ISSUABLE UPON CONVERSION. The Corporation
shall at all times reserve and keep available out of its authorized but unissued
shares of Common Stock solely for the purpose of effecting the conversion of the
shares of Convertible Preferred Stock such number of its shares of Common Stock
as shall from time to time be sufficient to effect the conversion of all
outstanding shares of Convertible Preferred Stock; and if at any time the number
of authorized but unissued shares of Common Stock shall not be sufficient to
effect the conversion of all of the then outstanding shares of Convertible
Preferred Stock, the Corporation will take such corporate action as may be
necessary to increase its authorized but unissued shares of Common Stock to such
number of shares as shall be sufficient for such purpose.

            (d) NO CLOSING OF TRANSFER BOOKS. The Corporation shall not close
its books against the transfer of shares of Convertible Preferred Stock in any
manner which would interfere with the timely conversion of any shares of
Convertible Preferred Stock.

         7. ADJUSTMENTS. The Conversion Price in effect from time to time shall
be subject to adjustment from and after the Convertible Preferred Original
Issuance Date and regardless of whether any shares of Convertible Preferred
Stock are then issued and outstanding as follows:

            (a) ADJUSTMENT UPON CHANGE IN MARKET VALUE. If on December 9, 2000
(the "Anniversary Date") the product of (a) 1.10 multiplied by (b) the sum of
(i) the average closing bid price of the Common Stock for the 30 trading days
immediately preceding the Anniversary Date, plus (ii) on an as-converted, per
share basis, the fair market value on the Anniversary Date (as determined in
good faith by the Board of Directors and reasonably agreed to by a Two-Thirds
Interest, except that if the distribution includes any securities, the fair
market value of such securities shall be determined by reference to Section
A.5(b) hereof) of any securities, cash or assets (excluding any dividend or
distribution paid exclusively in cash or in Common Stock) which prior to the
Anniversary Date are distributed or made payable to the holders of Convertible
Preferred Stock (such product the "Reset Price"), is less than the Conversion
Price then in effect, then the Conversion Price shall be adjusted to equal the
Reset Price and shall be subject to further adjustment as provided herein;
provided, however, that in no event shall the Conversion Price be reduced by
more than 50% pursuant to this Section A.7(a). Any dispute as to fair market
value hereunder shall be resolved by independent appraisal by a mutually agreed
investment banker, the fees of which shall be paid by the Corporation.

            (b) DIVIDENDS AND STOCK SPLITS. If the number of shares of Common
Stock (which term for purposes of this Section A.7 shall include all common
stock of the Corporation) outstanding at any time after the date hereof is
increased by a stock dividend or distribution payable in shares of Common Stock
or by a subdivision or split-up of shares of Common Stock, then, on the date
such payment is made or such change is effective, the Conversion Price shall be
appropriately decreased so that the number of shares of Common Stock issuable on
conversion of any shares of Convertible Preferred Stock shall be increased in
proportion to such increase of outstanding shares of Common Stock.

            (c) REVERSE STOCK SPLITS. If the number of shares of Common Stock
outstanding at any time after the date hereof is decreased by a combination or
reverse split of the outstanding shares of Common Stock, then, on the effective
date of such combination or reverse split, the Conversion Price shall be
appropriately increased so that the number of shares of Common Stock issuable on
conversion of any shares of Convertible Preferred Stock shall be decreased in
proportion to such decrease in outstanding shares of Common Stock.

<PAGE>   9

            (d) SALE OF COMMON STOCK. In the event the Corporation shall at any
time, or from time to time, issue, sell or exchange any shares of Common Stock
(including shares held in the Corporation's treasury but excluding (I) up to
1,211,236 shares and options issued to officers, directors or employees of the
Corporation or upon the exercise of options or other rights issued to such
officers, directors or employees pursuant to the Corporation's stock option,
stock purchase and related employee plans (II) up to 1,555,150 shares issuable
upon exercise of warrants or other rights issued by the Corporation prior to the
first date any shares of Convertible Preferred Stock are issued or (III) any
securities issuable upon conversion of the Convertible Preferred Stock or
exercise of warrants issued pursuant to the Securities Purchase Agreement dated
December 9, 1999 (the "Purchase Agreement") (the "Excluded Shares")), for a
consideration per share (the "Purchase Price") less than the greater of (a) the
Market Price (as hereinafter defined) of the Common Stock in effect immediately
prior to the issuance, sale or exchange of such shares or (b) the Conversion
Price in effect immediately prior to the issuance, sale or exchange of such
shares, then, and thereafter successively upon each such issuance, sale or
exchange, the Conversion Price in effect immediately prior to the issuance, sale
or exchange of such shares shall be reduced to an amount determined by
multiplying such Conversion Price by a fraction:

                (i)  the numerator of which shall be (X) the number of shares of
Common Stock of all classes outstanding immediately prior to the issuance of
such additional shares of Common Stock (excluding treasury shares but including
all shares of Common Stock issuable upon conversion or exercise of any
outstanding Convertible Preferred Stock, options, warrants, rights or
convertible securities having an exercise or conversion price less than such
Purchase Price), plus (Y) the number of shares of Common Stock which the net
aggregate consideration received by the Corporation for the total number of such
additional shares of Common Stock so issued would purchase at the Conversion
Price (prior to adjustment), and

                (ii) the denominator of which shall be (X) the number of shares
of Common Stock of all classes outstanding immediately prior to the issuance of
such additional shares of Common Stock (excluding treasury shares but including
all shares of Common Stock issuable upon conversion or exercise of any
outstanding Convertible Preferred Stock, options, warrants, rights or
convertible securities having an exercise or conversion price less than such
Purchase Price), plus (Y) the number of such additional shares of Common Stock
so issued.

         The "Market Price" of the Common Stock on any date shall mean the last
sale price, regular way, or, in case no such sale takes place on such day, the
average of the closing bid and asked prices, regular way, in either case as
reported in the principal consolidated transaction reporting system with respect
to securities listed or admitted to trading on the New York Stock Exchange or,
if the Common Stock is not listed or admitted to trading on the New York Stock
Exchange, as reported in the principal consolidated transaction reporting system
with respect to securities listed on the principal national securities exchange
on which the Common Stock is listed or admitted to trading or, if the Common
Stock is not listed or admitted to trading on any national securities exchange,
the last quoted price, or if not so quoted, the average of the high bid and low
asked prices in the over-the-counter market, as reported by the Nasdaq Stock
Market, Inc.'s Automated Quotation System or, if such system is no longer in
use, the principal other automated quotation system that may then be in use, or
if the Common Stock is not quoted by any such organization, the average of the
closing bid and asked prices as furnished by a professional market maker making
a market in the Common Stock that is selected by the Board of Directors of the
Corporation, or, if there is no such professional market maker, such amount as
an independent investment banking firm selected by the Board of Directors of the
Corporation determines to be the value of a share of Common Stock.

            (e) SALE OF OPTIONS, RIGHTS OR CONVERTIBLE SECURITIES. In the event
the Corporation shall at any time or from time to time, issue options, warrants
or rights to subscribe for shares of Common Stock, or issue any securities
convertible into or exchangeable for shares of Common Stock (other than any
options or warrants for Excluded Shares), for a Purchase Price (determined by
dividing the Net Aggregate Consideration (as determined below) by the aggregate
number of shares of Common Stock that would be issued if all such options,
warrants, rights or convertible securities were exercised or converted to the
fullest extent permitted by their terms) less than the greater of (a) the Market
Price in effect immediately prior to the issuance, sale or exchange of such
shares or (b) the Conversion Price in effect immediately prior to the issuance
of such options or rights or convertible or exchangeable securities, then the
Conversion Price in effect immediately prior to the issuance of such options,
warrants or rights or securities shall be reduced to an amount determined by
multiplying such Conversion Price by a fraction:

                (i)  the numerator of which shall be (X) the number of shares of
Common Stock of all classes outstanding immediately prior to the issuance of
such options, rights or convertible securities (excluding treasury shares but
including all shares of Common Stock issuable upon conversion or exercise of any
outstanding Convertible Preferred Stock, options, warrants, rights or
convertible securities having an exercise or conversion price less than such
Purchase Price), plus (Y) the number of shares of Common Stock which the total
amount of

<PAGE>   10

consideration received by the Corporation for the issuance of such options,
warrants, rights or convertible securities plus the minimum amount set forth in
the terms of such security as payable to the Corporation upon the exercise or
conversion thereof (the "Net Aggregate Consideration") would purchase at the
Conversion Price prior to adjustment, and

                (ii) the denominator of which shall be (X) the number of shares
of Common Stock of all classes outstanding immediately prior to the issuance of
such options, warrants, rights or convertible securities (excluding treasury
shares but including all shares of Common Stock issuable upon conversion or
exercise of any outstanding Convertible Preferred Stock, options, warrants,
rights or convertible securities having an exercise or conversion price less
than such Purchase Price), plus (Y) the aggregate number of shares of Common
Stock that would be issued if all such options, warrants, rights or convertible
securities were exercised or converted.

            (f) EXPIRATION OR CHANGE IN PRICE. If the consideration per share
provided for in any options or rights to subscribe for shares of Common Stock or
any securities exchangeable for or convertible into shares of Common Stock,
changes at any time (other than as a result of the operation of the antidilution
provision of this Section A.7 or the antidilution provisions of certain Warrants
issued by the Corporation pursuant to the Purchase Agreement), the Conversion
Price in effect at the time of such change shall be readjusted to the Conversion
Price which would have been in effect at such time had such options or
convertible securities provided for such changed consideration per share
(determined as provided in Section A.7(d) hereof), at the time initially
granted, issued or sold; PROVIDED, that such adjustment of the Conversion Price
will be made only as and to the extent that the Conversion Price effective upon
such adjustment remains less than or equal to the Conversion Price that would be
in effect if such options, rights or securities had not been issued. No
adjustment of the Conversion Price shall be made under this Section A.7 upon the
issuance of any additional shares of Common Stock which are issued pursuant to
the exercise of any warrants, options or other subscription or purchase rights
or pursuant to the exercise of any conversion or exchange rights in any
convertible securities if an adjustment shall previously have been made upon the
issuance of such warrants, options or other rights. Any adjustment of the
Conversion Price shall be disregarded if, as, and when the rights to acquire
shares of Common Stock upon exercise or conversion of the warrants, options,
rights or convertible securities which gave rise to such adjustment expire or
are canceled without having been exercised, so that the Conversion Price
effective immediately upon such cancellation or expiration shall be equal to the
Conversion Price in effect at the time of the issuance of the expired or
canceled warrants, options, rights or convertible securities, with such
additional adjustments as would have been made to that Conversion Price had the
expired or canceled warrants, options, rights or convertible securities not been
issued.

            (g) OTHER ADJUSTMENTS. In case the Corporation shall, by dividend,
distribution or otherwise, distribute to all holders of its Common Stock
evidences of its indebtedness, shares of any class or series of capital stock,
other securities, cash or assets (excluding (i) any options, rights or warrants
referred to in Section A.7(e), and (ii) any dividend or distribution paid
exclusively in cash or in Common Stock), then, at the election of a Majority
Interest, either (A) adequate provision shall be made so that holders of
Convertible Preferred Stock shall receive upon conversion thereof, in addition
to the number of shares of Common Stock receivable thereupon, the evidence of
indebtedness, shares of any class or series of capital stock, securities of any
issuer other than the Corporation, cash or assets which they would have received
had the Convertible Preferred Stock been converted into Common Stock as to the
date referenced for the payment of such distribution (the "Reference Date"), or
(B) the Conversion Price shall be reduced so that such price shall equal the
price determined by multiplying the Conversion Price in effect immediately prior
to the effectiveness of the Conversion Price reduction contemplated by this
Section A.7(g) by a fraction, the numerator of which shall be the Market Price
(determined as provided in Section A.7(d) per share of the Common Stock on the
Reference Date less the fair market value (as determined, subject to the last
sentence of this Section A.7(g), in good faith by the Board of Directors, whose
determination shall be conclusive and described in a resolution of the Board of
Directors), on the Reference Date, of such number or amount of the evidences of
indebtedness, shares of capital stock, securities, cash and assets that is so
distributed to a holder of one share of Common Stock, and the denominator shall
be such Market Price per share of the Common Stock, such reduction to become
effective immediately prior to the opening of business on the day following the
Reference Date. Notwithstanding any other provision of this Section A.7(g), if
any shares of capital stock distributed to a holder of Common Stock are listed
or admitted to trading on any national securities exchange or on the Nasdaq
Stock Market, or quoted on any other automated quotation system that may then be
in use, for the five consecutive trading days prior to and including the
Reference Date, or will be listed or admitted to trading or quoted thereon as of
(but not prior to) the Reference Date for the ten consecutive trading days
subsequent to and including the Reference Date, then, the Board of Directors, in
making its determination of the fair market value of such number of shares of
capital stock that are so distributed to a holder of one share of Common Stock,
shall make such determination by reference to the Market Price (as determined by
reference to Section 7(d)) of such shares of capital stock as of the Reference
Date.

<PAGE>   11

            (h) REORGANIZATION, ETC. If the Common Stock issuable upon the
conversion of the Convertible Preferred Stock shall be changed into the same or
different number of shares of any class or classes of stock, whether by
reclassification or otherwise (other than a subdivision or combination of shares
or stock dividend provided for above, or a reorganization, merger, consolidation
or sale of assets provided for elsewhere in this Section A.7), then and in each
such event the holder of each share of Convertible Preferred Stock shall have
the right thereafter to convert such share into the kind and amount of shares of
stock and other securities and property receivable upon such reorganization,
reclassification or other change, by holders of the number of shares of Common
Stock into which such shares of Convertible Preferred Stock might have been
converted immediately prior to such reorganization, reclassification or change,
all subject to further adjustment as provided herein.

            (i) MERGERS AND OTHER REORGANIZATIONS. Unless such transaction is an
Extraordinary Transaction in which the holders of the Convertible Preferred
Stock elect redemption or otherwise participate (in which case Section
A.5(a)(ii) shall apply and this subsection shall not apply), if at any time or
from time to time there shall be a capital reorganization of the Common Stock
(other than a subdivision, combination, reclassification or exchange of shares
provided for elsewhere in this Section A.7) or a merger or consolidation of the
Corporation with or into another corporation or the sale of all or substantially
all of the Corporation's properties and assets to any other person, then, to the
extent permitted by law, as part of and as a condition to the effectiveness of
such reorganization, merger, consolidation or sale, lawful and adequate
provision shall be made so that the holders of the Convertible Preferred Stock
shall thereafter be entitled to receive upon conversion of the Convertible
Preferred Stock the number of shares of stock or other securities or property of
the Corporation, or of the successor corporation resulting from such merger or
consolidation or sale, to which a holder of Common Stock would have been
entitled in connection with such capital reorganization, merger, consolidation,
or sale. In any such case, appropriate provisions shall be made with respect to
the rights of the holders of the Convertible Preferred Stock after the
reorganization, merger, consolidation or sale to the end that the provisions of
this Section A.7 (including, without limitation, provisions for adjustment of
the applicable Conversion Price and the number of shares purchasable upon
conversion of the Convertible Preferred Stock) shall thereafter be applicable,
as nearly as may be, with respect to any shares of stock, securities or assets
to be deliverable thereafter upon the conversion of the Convertible Preferred
Stock.

            (j) CALCULATIONS. All calculations under this Section A.7 shall be
made to the nearest cent or to the nearest one hundredth (1/100) of
a share, as the case may be.

            (k) CERTIFICATE. Upon the occurrence of each adjustment or
readjustment pursuant to this Section A.7, the Corporation at its expense shall
promptly compute such adjustment or readjustment in accordance with the terms
hereof and prepare and furnish to each holder of Convertible Preferred Stock a
certificate setting forth such adjustment or readjustment and showing in detail
the facts upon which such adjustment or readjustment is based. The Corporation
shall, upon written request at any time of any holder of Convertible Preferred
Stock, furnish or cause to be furnished to such holder a like certificate
setting forth (i) such adjustments and readjustments, (ii) the Conversion Price
before and after such adjustment or readjustment, and (iii) the number of shares
of Common Stock and the amount, if any, of other property which at the time
would be received upon the conversion of such holder's shares of Convertible
Preferred Stock.

            (l) DISPUTES. In the event of a dispute in connection with an
adjustment hereunder, the Corporation will cause independent certified public
accountants of recognized national standing (which may be the regular auditors
of the Corporation) selected by the Corporation to verify such computation
(other than any computation of the fair value of property as determined in good
faith by the Board of Directors of the Corporation) and prepare a report setting
forth such adjustment or readjustment and showing in reasonable detail the
method of calculation thereof and the facts upon which such adjustment or
re-adjustment is based. The Corporation will forthwith mail a copy of each such
report to the holders of Convertible Preferred Stock and will, upon the written
request at any time of any such holder, furnish to such holder a like report
setting forth the Conversion Price at the time in effect and showing in
reasonable detail how it was calculated. The Corporation will also keep copies
of all such reports at its principal office and will cause the same to be
available for inspection at such office during normal business hours by any
holder of Convertible Preferred Stock or any prospective purchaser of such stock
designated by the holder thereof.

            (m) MULTIPLE ADJUSTMENTS. If any single transaction or event
would require adjustment of the Conversion Price pursuant to more than one of
the provisions described above, only one adjustment shall be made and such
adjustment shall be in the amount of the adjustment having the highest absolute
value to the holders of the Convertible Preferred Stock.

<PAGE>   12

            (n) MINIMUM ADJUSTMENT. No adjustment in the Conversion Price
shall be required to be made unless and until such adjustment would require a
change of at least one percent (1%) of the Conversion Price then in effect;
provided, however, that any adjustment that would not be required to be made
shall be taken into account and in subsequent adjustment.

         8. COVENANTS.

            (a) So long as at least 1,000 shares of Convertible Preferred
Stock shall be outstanding, the Corporation shall not, without first having
provided written notice of such proposed action to each holder of outstanding
shares of Convertible Preferred Stock and having obtained the affirmative vote
or written consent of the holders of not less than a Majority Interest, voting
as a single class, with each share of Convertible Preferred Stock entitling the
holder thereof to one vote per share of Convertible Preferred Stock held by such
holder, directly or indirectly (which consent shall not be unreasonably
withheld), enter into an agreement with respect to, or effect, or permit, any:

                (i) merger or consolidation of the Corporation or any of its
          subsidiaries with any other person or entity, recapitalization,
          reorganization or other like transaction involving the Corporation or
          any of its subsidiaries, or liquidation or dissolution of the
          Corporation or any of its subsidiaries;

                (ii) sale or transfer of all or substantially all of the
          Corporation's consolidated properties or assets;

                (iii) disposition of assets in one or more transactions for
          consideration in excess of $1,000,000 without the approval of the
          Board of Directors of the Corporation; or

                (iv) incurrence of indebtedness for money borrowed, except for
          borrowings under the Corporation's primary credit agreement of up to
          $3,000,000.

            (b) So long as any shares of Convertible Preferred Stock shall
be outstanding, the Corporation shall not, without first having provided written
notice of such proposed action to each holder of outstanding shares of
Convertible Preferred Stock and having obtained the affirmative vote or written
consent of the holders of not less than a Majority Interest, voting as a single
class, with each share of Convertible Preferred Stock entitling the holder
thereof to one vote per share of Convertible Preferred Stock held by such
holder, directly or indirectly, enter into an agreement with respect to, or
effect, or permit, any:

                (i) issuance of any equity securities (including Convertible
          Preferred Stock, except as contemplated by the Purchase Agreement) or
          any securities exchangeable or convertible into equity securities or
          measured by earnings or profit of the Corporation or any of its
          subsidiaries (other than Series C Preferred Stock); provided, that the
          Corporation or any subsidiary permitted to do so under the Purchase
          Agreement may issue securities that rank junior to the Convertible
          Preferred Stock as to liquidation, dividend and redemption rights;

                (ii) redemption, repurchase or other acquisition for value of
          any equity security of the Corporation (other than redemption of the
          Convertible Preferred Stock in accordance with the terms hereof); or

                (iii) amendment of the Corporation's or any of its subsidiaries'
          certificate of incorporation, bylaws or other charter documents as in
          effect on December 9, 1999, the date of filing of the Certificate of
          Designation of the Series B Preferred Stock.

            (c) The prohibition on repurchases contained in Section A.8(b)(ii)
shall not apply to the repurchase by the Corporation of up to 250,000 shares of
Common Stock pursuant to the terms of restrictive agreements under which the
Corporation has the option to repurchase such shares from employees, officers,
directors, consultants, or other persons performing services for the Corporation
or any subsidiary upon the occurrence of certain events.

         Further, the Corporation shall not, by amendment of its Certificate of
Incorporation or through any Extraordinary Transaction or other reorganization,
transfer of assets, consolidation, merger, dissolution, issue or sale of
securities, agreement or any other voluntary action, avoid or seek to avoid the
observance or performance of any of the terms to be observed or performed
hereunder by the Corporation but shall at all times in good faith assist in

<PAGE>   13

the carrying out of all the provisions of this Section A and in the taking of
all such action as may be necessary or appropriate in order to protect the
rights of the holders of the Convertible Preferred Stock against impairment.
Without limitation of the foregoing, the Corporation shall take such action as
shall be necessary or appropriate, to the extent reasonably within its control,
to remove promptly any impediments to its ability to redeem Convertible
Preferred Stock under the circumstances contemplated by Section A.5(e). Any
successor to the Corporation shall agree, as a condition to such succession, to
carry out and observe the obligations of the Corporation hereunder with respect
to the Convertible Preferred Stock.

         9. NOTICE.

            (a) LIQUIDATION EVENTS, EXTRAORDINARY TRANSACTIONS, ETC. In
the event (i) the Corporation establishes a record date to determine the holders
of any class of securities who are entitled to receive any dividend or other
distribution or who are entitled to vote at a meeting (or by written consent) in
connection with any of the transactions identified in clause (ii) hereof, or
(ii) any Liquidation Event (as defined in Section A.4) or any Extraordinary
Transaction (as defined in Section A.5), becomes reasonably likely to occur, the
Corporation shall mail or cause to be mailed by first class mail (postage
prepaid) to each holder of Convertible Preferred Stock at least twenty (20) days
prior to such record date specified therein or the expected effective date of
any such transaction, whichever is earlier, a notice specifying (A) the date of
such record date for the purpose of such dividend or distribution or meeting or
consent and a description of such dividend or distribution or the action to be
taken at such meeting or by such consent, (B) the date on which any such
Liquidation Event, Extraordinary Transaction or public offering is expected to
become effective, and (C) the date on which the books of the Corporation shall
close or a record shall be taken with respect to any such event.

            (b) WAIVER OF NOTICE. The holder or holders of not less than a
Two Thirds Interest of the outstanding shares of Convertible Preferred Stock
may, at any time upon written notice to the Corporation, waive any notice
provisions specified herein for the benefit of such holders, and any such waiver
shall be binding upon all holders of such securities.

            (c) GENERAL. In the event that the Corporation provides any notice,
report or statement to any holder of Common Stock, the Corporation shall at the
same time provide a copy of any such notice, report or statement to each holder
of outstanding shares of Convertible Preferred Stock.

         10. NO REISSUANCE OF CONVERTIBLE PREFERRED STOCK. No share or shares of
Convertible Preferred Stock acquired by the Corporation by reason of redemption,
purchase, conversion or otherwise shall be reissued, and all such shares shall
be canceled, retired and eliminated from the shares which the Corporation shall
be authorized to issue.

         11. CONTRACTUAL RIGHTS OF HOLDERS. The various provisions set forth
herein for the benefit of the holders of the Convertible Preferred Stock shall
be deemed contract rights enforceable by them, including without limitation, one
or more actions for specific performance.

         12. NOTICES. Any notice required by any provision of this Section A to
be given to the holders of shares of Convertible Preferred Stock shall be deemed
given three (3) business days after being deposited in the United States mail,
postage pre-paid and registered or certified, and addressed to each holder of
record at such holder's address appearing on the stock records of the
Corporation.

B.       SERIES C PREFERRED STOCK

         SECTION 1. DESIGNATION AND AMOUNT. The shares of such series shall be
designated as "Series C Preferred Stock" and the number of shares constituting
such series shall be Five Hundred Thousand (500,000). Such number of shares may
be increased or decreased by resolution of the Board of Directors; provided,
that no decrease shall reduce the number of shares of Series C Preferred Stock
to a number less than that of the shares then outstanding.

         SECTION 2.  DIVIDENDS AND DISTRIBUTIONS.

         A. The holders of shares of Series C Preferred Stock in preference to
the holders of Common Stock shall be entitled to receive, when, as and if
declared by the Board of Directors out of funds legally available for the
purpose, quarterly dividends payable in cash on the first day of March, June,
September and December in each year (each such date being referred to herein as
a "Quarterly Dividend Payment Date"), commencing on the first Quarterly Dividend
Payment Date after the first issuance of a share or fraction of a share of
Series C Preferred Stock, in an amount per share (rounded to the nearest cent)
equal to the greater of (i) Four Dollars ($4.00) value or (ii) subject to the

<PAGE>   14

provision for adjustment hereinafter set forth, One Hundred (100) times the
aggregate per share amount of all cash dividends, and One Hundred (100) times
the aggregate per share amount (payable in kind) of all non-cash dividends or
other distributions, other than a dividend payable in shares of Common Stock or
a subdivision of the outstanding shares of Common Stock (by reclassification or
otherwise), declared on the Common Stock since the immediately preceding
Quarterly Dividend Payment Date or, with respect to the first Quarterly Dividend
Payment Date, since the first issuance of any share or fraction of a share of
Series C Preferred Stock. In the event the Corporation shall at any time declare
or pay any dividend on Common Stock payable in shares of Common Stock, or effect
a subdivision or combination or consolidation of the outstanding shares of
Common Stock (by reclassification or otherwise than by payment of a dividend in
shares of Common Stock) into a greater or lesser number of shares of Common
Stock, then in each such case the amount to which holders of shares of Series C
Preferred Stock were entitled immediately prior to such event under clause (ii)
of the preceding sentence shall be adjusted by multiplying such amount by a
fraction, the numerator of which is the number of shares of Common Stock
outstanding immediately after such event, and the denominator of which is the
number of shares of Common Stock that were outstanding immediately prior to such
event.

         B. The Corporation shall declare a dividend or distribution on the
Series C Preferred Stock as provided in paragraph (a) of this section
immediately after it declares a dividend or distribution on the Common Stock
(other than a dividend payable in shares of Common Stock); provided that, in the
event no dividend or distribution shall have been declared on the Common Stock
during the period between any Quarterly Dividend Payment Date and the next
subsequent Quarterly Dividend Payment Date, a dividend of Four Dollars ($4.00)
per share on the Series C Preferred Stock shall nevertheless be payable on such
subsequent Quarterly Dividend Payment Date.

         C. Dividends shall begin to accrue and be cumulative on outstanding
shares of Series C Preferred Stock from the Quarterly Dividend Payment Date next
preceding the date of issue of such shares of Series C Preferred Stock, unless
the date of issue of such shares is prior to the record date for the first
Quarterly Dividend Payment Date, in which case dividends on such shares shall
begin to accrue from the date of issue of such shares, or unless the date of
issue is a Quarterly Dividend Payment Date or is a date after the record date
for the determination of holders of shares of Series C Preferred Stock entitled
to receive a quarterly dividend and before such Quarterly Dividend Payment Date,
in either of which events such dividends shall begin to accrue and be cumulative
from such Quarterly Dividend Payment Date. Accrued but unpaid dividends shall
not bear interest. Dividends paid on the shares of Series C Preferred Stock in
an amount not less than the total amount of such dividends at the time accrued
and payable on such shares shall be allocated pro rata on a share-by-share basis
among all such shares at the time outstanding. The Board of Directors may fix a
record date for the determination of holders of shares of Series C Preferred
Stock entitled to receive payment of a dividend or distribution declared
thereon, which record date shall be not more than sixty (60) days prior to the
date fixed for the payment thereof.

         SECTION 3. VOTING RIGHTS. The holders of Series C Preferred Stock shall
have the following voting rights:

         A. Subject to the provision for adjustment hereinafter set forth, each
share of Series C Preferred Stock shall entitle the holder thereof to One
Hundred (100) votes on all matters submitted to a vote of the stockholders of
the Corporation. In the event the Corporation shall at any time declare or pay
any dividend on Common Stock payable in shares of Common Stock, or effect a
subdivision or combination or consolidation of the outstanding shares of Common
Stock (by reclassification or otherwise than by payment of a dividend in shares
of Common Stock) into a greater or lesser number of shares of Common Stock, then
in each such case the number of votes per share to which holders of shares of
Series C Preferred Stock were entitled immediately prior to such event shall be
adjusted by multiplying such number by a fraction, the numerator of which is the
number of shares of Common Stock outstanding immediately after such event, and
the denominator of which is the number of shares of Common Stock that were
outstanding immediately prior to such event.

         B. Except as otherwise provided herein or by law, the holders of shares
of Series C Preferred Stock and the holders of shares of Common Stock shall vote
together as one (1) class on all matters submitted to a vote of stockholders of
the Corporation.

         C. Except as set forth herein, holders of Series C Preferred Stock
shall have no special voting rights and their consent shall not be required
(except to the extent they are entitled to vote with holders of Common Stock as
set forth herein) for taking any corporate action.

         SECTION 4.  CERTAIN RESTRICTIONS.

         A. Whenever quarterly dividends or other dividends or distributions
payable on the Series C Preferred Stock as provided in section 2 are in arrears,
thereafter and until all accrued and unpaid dividends and distributions,

<PAGE>   15

whether or not declared, on shares of Series C Preferred Stock outstanding shall
have been paid in full, the corporation shall not:

                (i)  declare or pay dividends on, make any other distributions
         on, or redeem or purchase or otherwise acquire for consideration any
         shares of stock ranking junior (either as to dividends or upon
         liquidation, dissolution or winding up) to the Series C Preferred
         Stock;

                (ii) declare or pay dividends on or make any other
         distributions on any shares of stock ranking on a parity (either as to
         dividends or upon liquidation, dissolution or winding up) with the
         Series C Preferred Stock, except dividends paid ratably on the Series C
         Preferred Stock and all such parity stock on which dividends are
         payable or in arrears in proportion to the total amounts to which the
         holders of all such shares are then entitled.

         SECTION 5. REACQUIRED SHARES. Any shares of Series C Preferred Stock
purchased or otherwise acquired by the Corporation in any manner whatsoever
shall be retired and cancelled promptly after the acquisition thereof. All such
shares shall upon their cancellation become authorized but unissued shares of
Preferred Stock and may be reissued as part of a new series of Preferred Stock
to be created by resolution or resolutions of the Board of Directors, subject to
the conditions and restrictions on issuance set forth herein.

         SECTION 6. LIQUIDATION, DISSOLUTION OR WINDING UP. Upon any
liquidation, dissolution or winding up of the Corporation, no distribution shall
be made (i) to the holders of shares of stock ranking junior (either as to
dividends or upon liquidation, dissolution or winding up) to the Series C
Preferred Stock unless, prior thereto, the holders of shares of Series C
Preferred Stock shall have received the greater of (y) Sixteen Dollars ($16.00)
per share, plus an additional amount equal to accrued and unpaid dividends and
distributions thereon, whether or not declared, to the date of such payment, or
(z) an aggregate amount per share, subject to the provision for adjustment
hereinafter set forth, equal to One Hundred (100) times the aggregate amount to
be distributed per share to holders of Common Stock, or (ii) to the holders of
stock ranking on a parity (either as to dividends or upon liquidation,
dissolution or winding up) with the Series C Preferred Stock, except
distributions made ratably on the Series C Preferred Stock and all other such
parity stock in proportion to the total amounts to which the holders of all such
shares are entitled upon such liquidation, dissolution or winding up. In the
event the Corporation shall at any time declare or pay any dividend on Common
Stock payable in shares of Common Stock, or effect a subdivision or combination
or consolidation of the outstanding shares of Common Stock (by reclassification
or otherwise than by payment of a dividend in shares of Common Stock) into a
greater or lesser number of shares of Common Stock, then in each such case the
aggregate amount to which holders of shares of Series C Preferred Stock were
entitled immediately prior to such event under the proviso in clause (i) of the
preceding sentence shall be adjusted by multiplying such amount by a fraction,
the numerator of which is the number of shares of Common Stock outstanding
immediately after such event, and the denominator of which is the number of
shares of Common Stock that were outstanding immediately prior to such event.

         SECTION 7. CONSOLIDATION. In case the Corporation shall enter into any
consolidation, merger, combination or other transaction in which the shares of
Common Stock are exchanged for or changed into other stock or securities, cash
and/or other property, then in any such case the shares of Series C Preferred
Stock shall at the same time be similarly exchanged or changed in an amount per
share (subject to the provision for adjustment hereinafter set forth) equal to
One Hundred (100) times the aggregate amount of stock, securities, cash and/or
any other property (payable in kind), as the case may be, into which or for
which each share of Common Stock is changed or exchanged. In the event the
Corporation shall at any time declare or pay any dividend on Common Stock
payable in shares of Common Stock, or effect a subdivision or combination or
consolidation of the outstanding shares of Common Stock (by reclassification or
otherwise) into a greater or lesser number of shares of Common Stock, then in
each such case the amount set forth in the preceding sentence with respect to
the exchange or change of shares of Series C Preferred Stock shall be adjusted
by multiplying such amount by a fraction, the numerator of which is the number
of shares of Common Stock outstanding immediately after such event, and the
denominator of which is the number of shares of Common Stock that were
outstanding immediately prior to such event.

         SECTION 8. AMENDMENT. The Restated Certificate of Incorporation shall
not be amended in any manner which would materially alter or change the powers,
preferences or special rights of the Series C Preferred Stock, so as to affect
them adversely without the affirmative vote of the holders of at least
two-thirds (2/3) of the outstanding shares of Series C Preferred Stock, voting
together as a single series.

         FIFTH: The corporation is to have perpetual existence.

         SIXTH: In furtherance and not in limitation of the powers conferred by
statute, the board of directors is expressly authorized to make, alter or repeal
the by-laws of the corporation. In the event it is required or demanded that

<PAGE>   16

the stockholders of the corporation vote on any amendment or repeal of any
provisions of the bylaws, the affirmative vote of the holders of eighty percent
(80%) of the outstanding common stock of the corporation entitled to vote shall
be required in order to approve such amendment or repeal, except that such
eighty percent (80%) requirement shall not apply to any required or demanded
amendment or repeal if two-thirds (2/3) of the board of directors of the
corporation shall have approved such required or demanded amendment or repeal.

         SEVENTH: The business and affairs of the corporation shall be managed
by the board of directors. The directors of the corporation shall be divided
into three classes as nearly equal in number as may be, with the term of office
of those of the first class to expire at the first annual meeting of the
stockholders of the corporation; of the second class, one year thereafter; and
of the third class, two years thereafter. At each annual meeting of stockholders
held after such classification and election, directors shall be chosen for a
full term, as the case may be, to succeed those whose terms expire. Each full
term shall be for a period of three years. Directors may be removed by the
holders of a majority of the shares entitled to vote at an election of directors
only for cause.

         EIGHTH: A director or officer of the corporation shall not be
disqualified by his office from dealing or contracting with the corporation as a
vendor, purchaser, employee, agent, or otherwise. No transaction or contract or
act of the corporation shall be void or voidable or in any way affected or
invalidated by reason of the fact that any director or officer, or any firm of
which any director or officer is a member, or any corporation of which any
director or officer is a stockholder, director, or trustee, or any trust of
which any director or officer is a trustee or beneficiary, is in any way
interested in such transaction or contract or act. No director or officer shall
be accountable or responsible to the corporation for or in respect of any
transaction or contract or act of the corporation or for any gains or profits
directly or indirectly realized by him by reason of the fact that he or any firm
of which he is a member or any corporation of which he is a stockholder,
director, or trustee, or any trust of which he is a trustee or beneficiary, is
interested in said transaction, contract or act; provided the fact that such
director or officer or such firm or such corporation or such trust is so
interested shall have been disclosed or shall have been known to the board of
directors or such members thereof as shall be present at any meeting of the
board of directors at which action upon such contract or transaction or act
shall have been taken. Any director may be counted in determining the existence
of a quorum at any meeting of the board of directors which shall authorize or
take action in respect to any such contract or transaction or act, and may vote
thereat to authorize, ratify, or approve any such contract or transaction or
act, and any officer of the corporation may take any action within the scope of
his authority respecting such contract or transaction or act with like force and
effect as if he or any firm of which he is a member, or any corporation of which
he is a stockholder, director, or trustee, or any trust of which he is a trustee
or beneficiary, were not interested in such transaction or contract or act.
Without limiting or qualifying the foregoing, if in any judicial or other
inquiry, suit, cause, or proceeding, the question of whether a director or
officer of the corporation has acted in good faith is material, then
notwithstanding any statute or rule of law or of equity to the contrary (if any
there be), his good faith shall be presumed, in the absence of proof to the
contrary by clear and convincing evidence.

         NINTH: A. The corporation may indemnify or agree to indemnify any
person who was or is a party or is threatened to be made a party, to any
threatened, pending, or completed action, suit, or proceeding, whether civil,
criminal, administrative, or investigative, other than an action by or in the
right of the corporation, by reason of the fact he is or was a director,
officer, employee, or agent of the corporation, or is or was serving at the
request of the corporation as a director, trustee, officer, employee, or agent
of another corporation (including a subsidiary of this corporation), domestic or
foreign, nonprofit or for profit, partnership, joint venture, trust, or other
enterprise, against expenses, including attorneys' fees, judgments, fines, and
amounts paid in settlement actually and reasonably incurred by him in connection
with such action, suit, or proceeding if he acted in good faith and in a manner
he reasonably believed to be in or not opposed to the best interests of the
corporation, and with respect to any criminal action or proceeding, had no
reasonable cause to believe his conduct was unlawful. The termination of any
action, suit, or proceeding by judgment, order, settlement, conviction, or upon
a plea of nolo contendere or its equivalent, shall not, of itself create a
presumption that the person did not act in good faith and in a manner which he
reasonably believed to be in or not opposed to the best interests of the
corporation, and with respect to any criminal action or proceeding, he had
reasonable cause to believe that his conduct was unlawful.

         B. The corporation may indemnify or agree to indemnify any person who
was or is a party, or is threatened to be made a party to any threatened,
pending, or completed action or suit by or in the right of the corporation to
procure a judgment in its favor by reason of the fact that he is or was a
director, officer, employee, or agent of the corporation, or is or was serving
at the request of the corporation as a director, trustee, officer, employee, or
agent of another corporation (including a subsidiary of this corporation),
domestic or foreign, nonprofit or for profit, partnership, joint venture, trust,
or other enterprise against expenses, including attorneys' fees, actually and
reasonably incurred by him in connection with the defense or settlement of such
action or suit if he acted in good faith and in a manner he reasonably believed
to be in or not opposed to the best interest of the corporation, except that no
indemnification shall be made in respect to any claim, issue or matter as to
which such person shall have been adjudged

<PAGE>   17

to be liable to the corporation unless, and only to the extent that, the Court
of Chancery, or the court in which such action or suit was brought shall
determine upon application that, despite the adjudication of liability, but in
view of all the circumstances of the case, such person is fairly and reasonably
entitled to indemnity for such expenses as the Court of Chancery or other such
court shall deem proper.

         C. To the extent that a director, trustee, officer, employee, or agent
has been successful on the merits or otherwise in defense of any action, suit,
or proceeding referred to in sections A. and B. of this Article, or in defense
of any claim, issue, or matter therein, he shall be indemnified against
expenses, including attorneys' fees, actually and reasonably incurred by him in
connection therewith.

         D. Any indemnification under sections A. and B. of this Article, unless
ordered by a court, shall be made by the corporation only as authorized in the
specific case upon a determination that indemnification of the director,
trustee, officer, employee, or agent is proper in the circumstances because he
has met the applicable standard of conduct set forth in sections A. and B. of
this Article. Such determination shall be made (1) by a majority vote of a
quorum consisting of directors of the indemnifying corporation who were not and
are not parties to or threatened with any such action, suit, or proceeding, or
(2) if such a quorum is not obtainable or if a majority vote of a quorum of
disinterested directors so directs, in a written opinion by independent legal
counsel other than an attorney, or a firm having associated with it an attorney,
who has been retained by or who has performed services for the corporation or
any person to be indemnified within the past five (5) years, or (3) by the
stockholders, or (4) by the Court of Chancery or the court in which such action,
suit, or proceeding was brought. Any determination made by the disinterested
directors under section D.(1) or by independent legal counsel under section
D.(2) of this Article shall be promptly communicated to the person who
threatened or brought the action or suit by or in the right of the corporation
under section B. of this Article, and within ten (10) days after receipt of such
notification, such person shall have the right to petition the Court of Chancery
or the court in which such action or suit was brought to review the
reasonableness of such determination.

         E. No director of the corporation shall be personally liable to the
corporation or its stockholders for monetary damages for breach of fiduciary
duty as a director, except for liability (1) for any breach of the director's
duty of loyalty to the corporation or its stockholders; (2) for acts or
omissions not in good faith or which involve intentional misconduct or knowing
violation of law; (3) under Section 174 of the Delaware General Corporation Law;
or (4) for any transaction from which the director derived an improper personal
benefit.

         F. Expenses, including attorneys' fees, incurred in any action, suit,
or proceeding referred to in sections A. and B. of this Article, may be paid by
the corporation in advance of the final disposition of such action, suit, or
proceedings upon receipt of a written undertaking by or on behalf of the
director, trustee, officer, employee, or agent to repay such amount, if it shall
ultimately be determined that he is not entitled to be indemnified by the
corporation as authorized in this Article. If a majority vote of a quorum of
disinterested directors so directs by resolution, said written undertaking need
not be submitted to the corporation. Such a determination that a written
undertaking need not be submitted to the corporation shall in no way affect the
entitlement of indemnification as authorized by this Article.

         G. The indemnification and advancement of expenses provided in this
Article shall not be deemed exclusive of any other rights to which those seeking
indemnification or advancement of expenses may be entitled under the Restated
Certificate or the bylaws or any agreement, vote of stockholders or
disinterested directors, or otherwise, both as to action in his official
capacity and as to action in another capacity while holding such office.

         H. The corporation may purchase and maintain insurance on behalf of any
person who is or was a director, officer, employee, or agent of the corporation,
or is or was serving at the request of the corporation as a director, trustee,
officer, employee, or agent of another corporation (including a subsidiary of
this corporation), domestic or foreign, nonprofit or for profit, partnership,
joint venture, trust, or other enterprise against any liability asserted against
him and incurred by him in any such capacity or arising out of his status as
such whether or not the corporation would have the power to indemnify him
against such liability under this Article.

         I. For purposes of this Article, references to "the corporation" shall
include, in addition to the resulting corporation, any constituent corporation
(including any constituent of a constituent) absorbed in a consolidation or
merger which, if its separate existence had continued, would have had power and
authority to indemnify its directors, officers, and employees or agents, so that
any person who is or was a director, officer, employee, or agent of such
constituent corporation, or is or was serving at the request of such constituent
corporation as a director, officer, employee, or agent of another corporation,
partnership, joint venture, trust, or other enterprise, shall stand in the same
position under the provisions of this Article with respect to the resulting or
surviving corporation as he would have with respect to such constituent
corporation if its separate existence had continued.

<PAGE>   18

         J. For purposes of this Article, references to "other enterprises"
shall include employee benefit plans; references to "fines" shall include any
excise taxes assessed on a person with respect to an employee benefit plan; and
references to "serving at the request of the corporation" shall include any
service as a director, officer, employee, or agent of the corporation which
imposes duties on, or involves services by, such director, officer, employee, or
agent with respect to an employee benefit plan, its participants, or
beneficiaries; and a person who acted in good faith and in a manner he
reasonably believed to be in the interest of the participants and beneficiaries
of an employee benefit plan shall be deemed to have acted in a manner "not
opposed to the best interests of the corporation" as referred to in this
Article.

         K. The indemnification and advancement of expenses provided by, or
granted pursuant to, this Article shall, unless otherwise provided when
authorized or ratified, continue as to a person who has ceased to be a director,
officer, employee, or agent and shall inure to the benefit of the heirs,
executors and administrators of such a person.

         TENTH: Meetings of stockholders may be held within or without the State
of Delaware, as the bylaws may provide. The books of the corporation may be kept
(subject to any provision contained in the statutes) outside the State of
Delaware at such place or places as may be designated from time to time by the
board of directors or in the bylaws of the corporation.

         ELEVENTH: A. The  affirmative  vote of the  holders of not less than
eighty percent (80%) of the outstanding shares of the corporation entitled to
vote shall be required, except as otherwise expressly provided in this Article
Eleventh(A) or in Article Eleventh(B) in order for the corporation:

                   (i)   to consolidate or merge with or into another
                         corporation;
                   (ii)  to cause a combination or majority share
                         acquisition involving the issuance of shares
                         of the corporation; (ii) to sell, transfer,
                         exchange or otherwise dispose of all, or
                         substantially all, its assets; or

                   (iii) to dissolve;

to the extent such actions require stockholder approval.

         The vote of stockholders specified in this Article Eleventh(A) shall
not apply to any action or transaction described in such paragraph if two-thirds
(2/3) of the Board of Directors of the corporation shall have approved the
action or transaction; in the event of a conflict between Article Eleventh(A)
and Article Eleventh(B), Article Eleventh(B) applies.

         B. The provisions of this Article Eleventh(B) shall apply to all
"Business Combinations" (as hereafter defined).

         1. The affirmative vote of the holders of not less eighty percent (80%)
of the outstanding shares of "Voting Stock" (as hereafter defined) of the
corporation and the affirmative vote of the holders of not less than sixty-seven
percent (67%) of the outstanding shares of Voting Stock held by stockholders
other than a "Related Person" (as hereafter defined) shall be required for the
approval or authorization of any Business Combination of the corporation with
any Related Person; provided, however, that the eighty percent (80%) and the
sixty-seven percent (67%) voting requirements shall not apply if either of the
following two exceptions are applicable:

            a. The "Continuing Directors" of the corporation (as hereafter
defined) by a two-thirds (2/3) vote (i) have expressly approved in advance the
acquisition of outstanding shares of Voting Stock of the corporation that caused
the Related Person to become a Related Person; or (ii) have approved the
Business Combination prior to the Related Person involved in the Business
Combination having become a Related Person; or

            b. The cash or fair market value of the property, securities or
other consideration to be received per share by stockholders of the corporation
in the Business Combination is not less than the highest per share price (with
appropriate adjustments for recapitalizations and for stock splits, stock
dividends and like distributions), paid by the Related Person in acquiring any
of its holdings in the corporation's Common Stock. For purposes of this Article
Eleventh(B), the term "other consideration to be received" shall include,
without limitation, the Common Stock of the corporation retained by its existing
stockholders in the event of any Business Combination in which the corporation
is the surviving corporation.

<PAGE>   19

         2. For purposes of this Article Eleventh(B), the following terms shall
have the following definitions:

            a. The term "Business Combination" shall mean (i) any merger or
consolidation of the corporation or a subsidiary with or into a Related Person,
(ii) any sale, lease, exchange, transfer or other disposition, including without
limitation a mortgage or any other security device, of all or any "Substantial
Part" (as hereafter defined) of the assets either of the corporation (including
without limitation any voting securities of a subsidiary) or of a subsidiary, to
a Related Person, (iii) any merger or consolidation of a Related Person with or
into the corporation or a subsidiary of the corporation, (iv) any sale, lease,
exchange, transfer or other disposition of all or any Substantial Part of the
assets of a Related Person to the corporation or a subsidiary of the
corporation, (v) the issuance of any securities of the corporation or a
subsidiary of the corporation to a Related Person, (vi) any recapitalization
that would have the effect of increasing the voting power of a Related Person,
and (vii) any agreement, contract or other arrangement providing for any of the
transactions described in this definition of Business Combination.

            b. The term "Related Person" shall mean and include any individual,
corporation, partnership or other person or entity which, together with its
"Affiliates" and "Associates" (as defined at Rule 12b-2 under the Securities
Exchange Act of 1934), "Beneficially Owns" (as defined at Rule 13d-3 under the
Securities Exchange Act of 1934) in the aggregate twenty percent (20%) or more
of the outstanding Voting Stock of the corporation, and any Affiliate or
Associate of any such individual, corporation, partnership or other person or
entity. Without limitation, any shares of Common Stock of the corporation that
any Related Person has the right to acquire pursuant to any agreement, or upon
exercise of conversion rights, warrants or options, or otherwise, shall be
deemed Beneficially Owned by the Related Person.

            c. The term "Continuing Director" shall mean a director who was a
member of the board of directors of the corporation immediately prior to the
time that the Related Person involved in a Business Combination became a Related
Person.

            d. The term "Substantial Part" shall mean more than thirty percent
(30%) of the fair market value of the total assets of the corporation, as of the
end of its most recent fiscal year ending prior to the time the determination is
being made.

            e. The term "Voting Stock" shall mean all outstanding shares of
capital stock of the corporation or another corporation entitled to vote
generally in the election of directors and each reference to a proportion of
shares of Voting Stock shall refer to such proportion of the votes entitled to
be cast by such shares.

         3. The provisions of this Article Eleventh(B) may not be repealed or
amended in any respect unless the action is approved by the affirmative vote of
the holders of not less than eighty percent (80%) of the outstanding shares of
Voting Stock of the corporation; provided, however, that if there is a Related
Person, such action must also be approved by the affirmative vote of holders of
not less than sixty-seven percent (67%) of the outstanding shares of Voting
Stock held by stockholders other than Related Persons. Further provided,
however, that this paragraph 3. shall not apply to, and such eighty percent
(80%) vote and sixty-seven percent (67%) vote shall not be required for any
amendment, repeal or adoption recommended by a majority of the board of
directors if all of such directors are Continuing Directors as defined in
paragraph 2(c) of this Article Eleventh(B).

         TWELFTH: The corporation shall not purchase any shares of the
corporation's common voting stock from any stockholder or stockholders acting as
a group, who individually or collectively hold(s) five percent (5%) or more of
the corporation's outstanding common stock, not including any treasury stock
(individually or collectively referred to in this Article Twelfth as the 'Five
Percent Holder(s)') at a price higher than the then current fair market value of
the corporation's common voting stock, based on the average of the closing
prices of the preceding five (5) trading days, or on terms more favorable, when
considered as a whole, than those otherwise available, unless (a) the
corporation makes an offer to all of its other stockholders to purchase from
each stockholder the same percentage of that stockholder's common voting stock
in the corporation as the corporation intends to purchase from the Five Percent
Holder(s), at the same price and on the same terms as the Five Percent Holder(s)
will receive; or (b) the holders of a majority of the corporation's outstanding
common voting stock entitled to vote approve of the corporation's purchase of
its common voting stock from the Five Percent Holder(s), at the intended price
and upon the intended terms, with the Five Percent Holder(s) not voting on such
approval and the common voting stock in the corporation which is held by the
Five Percent Holder(s) not counted as outstanding in calculating the number of
votes required for approval.

         THIRTEENTH: All actions which are required to be or may be taken by the
stockholders of the corporation shall be taken at a meeting of the stockholders,
duly held and upon proper notice, and may not be taken by written consent
without a meeting, and the power of stockholders to consent in writing to the
taking of any action is specifically denied.

<PAGE>   20

         FOURTEENTH: A. The corporation reserves the right to amend, alter,
change or repeal any provision contained in this Restated Certificate of
Incorporation, in the manner now or hereafter prescribed by statute, and all
rights conferred upon stockholders herein are granted subject to this
reservation and subject to paragraph B.

         B. The provisions set forth in this Restated Certificate may not be
repealed or amended in any respect, unless such action is approved by the
affirmative vote of the holders of not less than eighty percent (80%) of the
outstanding shares of the corporation entitled to vote, except that such eighty
percent (80%) requirement shall not apply if two-thirds (2/3) of the board of
directors of the corporation shall have approved such amendment or repeal.

         FIFTEENTH: The corporation elects to be governed by the provisions of
Section 203 of the Delaware General Corporation Law; provided that this Article
Fifteenth shall not restrict a business combination between the corporation and
an interested stockholder of the corporation who became such prior to December
12, 1991, the date the Restated Certificate of Incorporation was filed with the
Secretary of State of the State of Delaware.

         IN WITNESS WHEREOF, the Corporation has caused this Second Restated
Certificate of Incorporation to be signed and attested by its duly authorized
officers this 4th day of February, 2000.

                                        METRETEK TECHNOLOGIES, INC.

                                        By: /s/ W. Phillip Marcum
                                           --------------------------------
                                           W. Phillip Marcum, President and
                                            Chief Executive Officer

ATTEST:

By: /s/ Gary J. Zuiderveen
    -----------------------------
    Gary J. Zuiderveen, Secretary<PAGE>   1

                                                                    EXHIBIT 10.1

                       AMENDMENT NO. 4 TO CREDIT AGREEMENT

         AMENDMENT NO. 4, dated as of February 7, 2000, to the Credit Agreement,
dated as of December 31, 1996 (the "CREDIT AGREEMENT"), among (i) CHIQUITA
BRANDS INTERNATIONAL, INC., a New Jersey corporation (the "BORROWER"), (ii) the
financial institutions which are now, or in accordance with SECTION 12.2 of the
Credit Agreement hereafter become, parties to the Credit Agreement
(collectively, "LENDERS"), (iii) BANKBOSTON, N.A., as Administrative Agent for
the Lenders, and (iv) BANKBOSTON, N.A., ING BANK N.V. and PNC BANK, NATIONAL
Association, as Co-agents for the Lenders.

                                    RECITALS
                                    --------

                  The Borrower, the Lenders and the Agents party to this
Amendment No. 4 ("THIS AGREEMENT") have agreed to amend certain of the
provisions contained in the Credit Agreement as set forth herein.

                  Accordingly, the parties hereto hereby agree as follows:

                            ARTICLE I -- DEFINITIONS

         SECTION 1.1. DEFINITIONS. Unless otherwise defined herein, terms
defined in the Credit Agreement are used herein as therein defined.

                            ARTICLE II -- AMENDMENTS

         Unless otherwise indicated below, effective on and as of 5:00 p.m.,
February 7, 2000 (the "AMENDMENT Date"), the Credit Agreement is hereby amended
in each of the following respects:

         SECTION 2.1.  AMENDMENTS TO DEFINED TERMS.

                  (a) SECTION 1.1. SECTION 1.1 is hereby amended by inserting in
its correct alphabetical sequence the following definitions:

                  "AMENDMENT DOCUMENTS" means, collectively, (a) Amendment No. 4
         to Credit Agreement, dated as of February 7, 2000, by and among the
         Borrower, the Agents, and the certain financial institutions party
         thereto, and (b) the Collateral Documents.

                  "CHIQUITA PROCESSED FOODS" means Chiquita Processed Foods,
         L.L.C., a Delaware limited liability company, and a direct wholly-owned
         Subsidiary of Friday.

                  "COLLATERAL" means, collectively, (a) the Pledged Collateral,
         (b) the Security Agreement Collateral, and (c) any and all other
         collateral provided by the Borrower or by any of its Subsidiaries to
         the Agents, the Issuer and the Lenders from time to time pursuant to
         the Collateral Documents and the other Loan Documents.

                  "COLLATERAL AGENT" means BankBoston, N.A., in its capacity as
         collateral agent for the Agents, the Issuer and the Lenders under this
         Agreement, the

<PAGE>   2
                                       -2-

         Collateral Documents and the other Loan Documents, and any successor to
         such collateral agent.

                  "COLLATERAL DOCUMENTS" means, collectively, the Security
         Agreement, the Pledge Agreement, all other Instruments (including the
         Agency Account Agreements, as defined in the Security Agreement)
         executed and delivered to the Administrative Agent or the Collateral
         Agent on the Amendment Date or from time to time thereafter, and all
         other Instruments executed and/or delivered from time to time pursuant
         to any of the foregoing.

                  "COMMITMENT AMOUNT CERTIFICATE" means a certificate duly
         executed by an Authorized Officer of the Borrower, substantially in the
         form of EXHIBIT J attached hereto (with such changes thereto as may be
         agreed upon by the Administrative Agent and the Borrower), and
         delivered to the Administrative Agent pursuant to SECTION 9.1.1(d).

                  "FRIDAY" means Friday Holdings, L.L.C., a Delaware limited
         liability company and a direct wholly-owned Subsidiary of the Borrower.

                  "INVESTMENT CAP" means an amount equal to $45,000,000, unless
         and until such time as the Borrower has made a mandatory repayment of
         principal of Revolving Loans pursuant to SECTION 3.3.3(A) or (B) in an
         aggregate principal amount of not less than $10,000,000, at which time
         such amount shall be increased to $50,000,000.

                  "MAXIMUM PERMITTED AMOUNT" is defined in EXHIBIT J hereto.

                  "NINETY PERCENT MAJORITY LENDERS" means, at the time any
         determination thereof is to be made, (a) until all of the Commitments
         have terminated, Lenders then having in the aggregate at least 90% of
         the aggregate Commitments then in effect, and (b) after all of the
         Commitments have terminated, Lenders then holding in the aggregate at
         least 90% of the aggregate outstanding principal amount of all of the
         Revolving Loans; PROVIDED, HOWEVER, that, for purposes of this
         definition, (i) so long as there are four (4) or more Lenders, in no
         event shall less than three (3) Lenders constitute the "NINETY PERCENT
         MAJORITY LENDERS", and (ii) after all of the Commitments have
         terminated, each of the Lenders shall, for purposes only of CLAUSE (b)
         of this definition, be deemed to hold from time to time Revolving Loans
         in an aggregate principal amount equal to such Lender's applicable
         Percentage of all undrawn Letters of Credit from time to time
         outstanding.

                  "PACA" is defined in SECTION 8.13.

                  "PLEDGE AGREEMENT" means the Pledge Agreement, dated as of
         February 7, 2000, by and between the Borrower and the Collateral Agent.

                  "PLEDGED COLLATERAL" shall mean the Collateral under and as
         defined in the Pledge Agreement.

<PAGE>   3
                                       -3-

                  "SECURITY AGREEMENT" means the Security Agreement, dated as of
         February 7, 2000, by and between the Borrower and the Collateral Agent.

                  "SECURITY AGREEMENT COLLATERAL" has the meaning specified in
the Security Agreement.

                  "SECURITY INSTRUMENT" means any security agreement, chattel
         mortgage, assignment, pledge agreement, financing or other similar
         statement or notice, continuation statement, other agreement or
         Instrument, or any amendment or supplement to any thereof, creating,
         governing or providing for, evidencing or perfecting any security
         interest or Lien.

                  "SUPER-MAJORITY LENDERS" means, at the time any determination
         thereof is to be made, (a) until all of the Commitments have
         terminated, Lenders then having in the aggregate at least 66.67% of the
         aggregate Commitments then in effect, and (b) after all of the
         Commitments have terminated, Lenders then holding in the aggregate at
         least 66.67% of the aggregate outstanding principal amount of all of
         the Revolving Loans; PROVIDED, HOWEVER, that, for purposes of this
         definition, (i) so long as there are four (4) or more Lenders, in no
         event shall less than three (3) Lenders constitute the "SUPER-MAJORITY
         LENDERS", and (ii) after all of the Commitments have terminated, each
         of the Lenders shall, for purposes only of CLAUSE (b) of this
         definition, be deemed to hold from time to time Revolving Loans in an
         aggregate principal amount equal to such Lender's applicable Percentage
         of all undrawn Letters of Credit from time to time outstanding.

                  (b) SECTION 1.1. SECTION 1.1 is hereby further amended by
deleting the definitions of the following terms: "Level I Status", "Level II
Status", "Level III Status", "Level IV Status", "Level V Status", and "Status".

                  (c) SECTION 1.1. The definition of "Alternate Base Rate
Margin" appearing in SECTION 1.1 of the Credit Agreement is hereby amended by
restating such definition in its entirety as follows:

                  "ALTERNATE BASE RATE MARGIN" means, for any Base Rate Tranche
         at any date, the rate of 1.25% per annum.

                  (d) SECTION 1.1. The definition of "Applicable Commitment Fee
Rate" appearing in SECTION 1.1 of the Credit Agreement is hereby amended by
restating such definition in its entirety as follows:

                  "APPLICABLE COMMITMENT FEE RATE" means, at any date, (i) if
         the Unused Commitment Amount is less than or equal to 50% of the
         Commitment Amount, the rate of .50% per annum, and (ii) if the Unused
         Commitment Amount is greater than 50% of the Commitment Amount, the
         rate of .75% per annum.

                  (e) SECTION 1.1. The definition of "Change of Control
Triggering Event" appearing in SECTION 1.1 of the Credit Agreement is hereby
amended by deleting the word

<PAGE>   4
                                       -4-

"or", immediately preceding clause (f) thereof, and inserting immediately
following such clause (f), the new clauses (g) and (h) as follows:

         "(g) the Borrower shall cease to directly own and control, both legally
         and beneficially, with full power to vote, one hundred percent (100%)
         of the membership interests in Friday; or (h) Friday shall cease to
         directly own and control, both legally and beneficially, with full
         power to vote, one hundred percent (100%) of the membership interests
         in Chiquita Processed Foods."

                  (f) SECTION 1.1. The definitions of "Consolidated EBITDA",
"Consolidated Net Interest Expense" and "Consolidated Operating Income"
appearing in SECTION 1.1 of the Credit Agreement are each hereby amended by
inserting immediately following the phrase "any fiscal year or fiscal quarter",
the phrase "or fiscal quarters" in the first sentence of each such definition.

                  (g) SECTION 1.1. The definition of "Eurodollar Rate Margin"
appearing in SECTION 1.1 of the Credit Agreement is hereby amended by restating
such definition in its entirety as follows:

                  "EURODOLLAR RATE MARGIN" means, for any Eurodollar Tranche at
         any date, the rate of 2.75% per annum.

                  (h) SECTION 1.1. The definition of "Leverage Ratio" appearing
in SECTION 1.1 of the Credit Agreement is hereby amended by inserting the
following PROVISO at the end of such definition, immediately following the word
"date":

                  "; PROVIDED, HOWEVER, that for the sole purpose of calculating
         and reporting the Leverage Ratio pursuant to SECTION 9.2.3(a) at the
         end of any fiscal quarter, Total Senior Debt and Total Capitalization
         shall each be reduced by the amount of cash shown on the balance sheet
         of the Borrower as at the end of such fiscal quarter solely to the
         extent such cash (a) represents the proceeds of Indebtedness for
         Borrowed Money which is permitted by SECTION 9.2.1, and (b) has been
         raised to repay other Indebtedness of the Borrower or its Subsidiaries
         and is being held in reserve for such purpose."

                  (i) SECTION 1.1. The definition of "Loan Documents" appearing
in SECTION 1.1 of the Credit Agreement is hereby amended by restating such
definition in its entirety as follows:

                  "LOAN DOCUMENTS" means, collectively, this Agreement, the
         Notes, the Agents' Fee Letter, each Assignment and Acceptance
         Agreement, each Intercompany Subordination Agreement, the Collateral
         Documents and each other Instrument executed and delivered pursuant to
         or in connection with any thereof.

                  (j) SECTION 1.1. The definition of "Reference Period"
appearing in SECTION 1.1 of the Credit Agreement is hereby amended by restating
such definition in its entirety as follows:

<PAGE>   5
                                       -5-

                  "REFERENCE PERIOD" means each period of four (4) consecutive
         fiscal quarters of the Borrower; PROVIDED, that solely for the purpose
         of calculating and reporting the Interest Coverage Ratio pursuant to
         SECTION 9.2.3(b), Reference Period shall mean each of the periods set
         forth therein.

Anything herein to the contrary notwithstanding, the amendments set forth in
SECTION 2.1(f), (h) and (j) above shall be effective as of December 30, 1999.

         SECTION 2.2.  AMENDMENTS TO COMMITMENTS.

                  (a) SECTION 2.2. SECTION 2.2 is amended by deleting the Dollar
amount "$125,000,000" appearing in such SECTION 2.2, and by inserting in place
thereof the following phrase: "(a) for the period prior to February 7, 2000,
$125,000,000, and (b) from and after February 7, 2000, $110,000,000."

         SECTION 2.3.  AMENDMENTS TO REVOLVING LOANS AND NOTES.

                  (a) SECTION 3.3. SECTION 3.3 is amended by inserting the
following new SECTION 3.3.3 immediately after the existing SECTION 3.3.2:

                  "SECTION 3.3.3. MANDATORY REPAYMENTS. (a) If at any time any
         payment (whether upon prepayment, repurchase or redemption) is made in
         cash or cash equivalents to or for the account of the Borrower (i) in
         satisfaction of all or any part of the principal of the intercompany
         debt owing to the Borrower, as evidenced by that certain Loan
         Agreement, by and between Chiquita Brands South Pacific Ltd. and the
         Borrower, dated as of June 24, 1998 (as the same may be amended,
         extended, restated or otherwise modified from time to time), or (ii) in
         satisfaction of all or any part of the principal of, or on account of
         the redemption, repurchase or acquisition of, any debt or equity
         Investment exchanged therefor, there shall immediately become due and
         payable the principal amount of Revolving Loans equal to the lesser of
         (A) the amount of such payment, or (B) the aggregate principal amount
         of Revolving Loans then outstanding.

                  (b) If at any time any payments are made in cash or cash
         equivalents to or for the account of the Borrower as proceeds or
         otherwise in connection with a Sale of any Subsidiary permitted under
         SECTION 9.2.5(e), where the Net Disposition Proceeds of such Sale equal
         or exceed the sum of $10,000,000, there shall immediately become due
         and payable the principal amount of Revolving Loans equal to the lesser
         of (i) the Net Disposition Proceeds of such Sale, or (ii) the aggregate
         principal amount of Revolving Loans then outstanding.

                  (c) Any such payments made to or for the account of the
         Borrower as set forth in PARAGRAPH (a) or (b) above, in excess of the
         then aggregate outstanding principal amount of all Revolving Loans, may
         be applied by the Borrower to the repurchase of public debt pursuant to
         SECTION 9.2.10 or may be otherwise used by the Borrower in accordance
         with this Agreement.

<PAGE>   6
                                       -6-

                  (d) If at any time the sum of the aggregate principal of all
         Revolving Loans outstanding and the aggregate Letter of Credit
         Outstandings shall exceed the Maximum Permitted Amount, then, unless
         the Super-Majority Lenders shall otherwise consent in writing, there
         shall immediately become due and payable the principal amount of
         Revolving Loans equal to the amount of such excess.

                  (e) Any prepayments pursuant to SECTION 3.3.3(a), (b) or (d)
         made on any day other than the end of an Interest Period for any
         Eurodollar Tranche shall be applied: first, to any Base Rate Tranche
         then outstanding; and, then, to the Eurodollar Tranche with the
         shortest Interest Period remaining and then, successively, to
         Eurodollar Tranches with, in each case, the then next shortest Interest
         Period; provided that, so long as no Event of Default shall then be
         continuing, the Administrative Agent shall, upon the request of the
         Borrower, apply any such prepayments to Eurodollar Tranches only on the
         last day of each of the respective Interest Periods relating thereto,
         and, until such application of any such prepayments, the Administrative
         Agent shall hold the amount thereof as cash Collateral for the
         Obligations upon the terms contained in the Collateral Documents.

                  (f) Each prepayment of Revolving Loans made pursuant to this
         SECTION 3.3.3 shall be without premium or penalty, except as may be
         required by SECTION 4.8. Prepayments hereunder shall not automatically
         reduce the Commitment Amount, and any amounts repaid hereunder may be
         reborrowed from time to time, in accordance with SECTION 3.1 hereof."

         SECTION 2.4.  AMENDMENTS TO CONDITIONS TO CREDIT EXTENSIONS.

                  (a) SECTION 7.2. SECTION 7.2 is amended by inserting the
following new SECTION 7.2.5 immediately after the existing SECTION 7.2.4:

                  "SECTION 7.2.5. SUPER-MAJORITY LENDERS CONSENT REQUIREMENT.
         If, immediately after giving effect to the proposed Credit Extension,
         the SUM of (a) the aggregate principal of all Revolving Loans
         outstanding, PLUS (b) the aggregate Letter of Credit Outstandings,
         would exceed:

                           (i) $106,500,000, at any time prior to the date of
         the delivery of the Commitment Amount Certificate pursuant to SECTION
         9.1.1(d) hereof; or

                           (ii) the Maximum Permitted Amount, at any time from
         and after the date of the delivery of the Commitment Amount
         Certificate;

         then the Borrower shall have received the prior written consent of the
         Super-Majority Lenders for such Credit Extension.

         SECTION 2.5.  AMENDMENTS TO WARRANTIES, ETC.

                  (a) SECTION 8.13. SECTION 8.13 is amended by restating such
SECTION 8.13 in its entirety as follows:

<PAGE>   7
                                       -7-

                  "SECTION 8.13. COMPLIANCE WITH APPLICABLE LAWS. Each of the
         Borrower and its Material Subsidiaries is in substantial compliance
         with all Applicable Laws, including, without limitation, the Perishable
         Agricultural Commodities Act (7 USCS Sections 499a et seq.)("PACA"),
         except to the extent that any failure so to be in compliance has not
         had and will not be reasonably likely to have a Materially Adverse
         Effect. The Borrower has no knowledge of any claims outstanding, or of
         any events that with the passage of time are likely to result in
         claims, against the Borrower or its Subsidiaries under PACA."

         SECTION 2.6.  AMENDMENTS TO CERTAIN AFFIRMATIVE COVENANTS.

                  (a) SECTION 9.1.1 is amended by deleting the word "and"
appearing at the end of paragraph (c) thereof, renumbering existing paragraph
(d) as paragraph (e), and inserting the following text immediately following
paragraph (c):

                  "(d) promptly when the information required to complete such
         certificate becomes available, and in any event by April 1, 2000, the
         Commitment Amount Certificate; and"

         SECTION 2.7.  AMENDMENTS TO CERTAIN NEGATIVE COVENANTS.

                  (a) SECTION 9.2.2(e). SECTION 9.2.2(e) is amended by deleting
the Dollar amount "$250,000,000" appearing in such SECTION 9.2.2(e), and by
inserting in place thereof the Dollar amount "$225,000,000" effective as of
December 30, 1999.

                  (b) SECTION 9.2.3(a). PARAGRAPH (a) of SECTION 9.2.3 is
amended by restating such SECTION 9.2.3(a) in its entirety effective as of
December 30, 1999, as follows:

                  "(a) LEVERAGE RATIO: Permit the Leverage Ratio to be greater
         than the ratio of 0.475:1.000 at the end of any fiscal quarter ending
         on or after December 30, 1999."

                  (c) SECTION 9.2.3(b). PARAGRAPH (b) of SECTION 9.2.3 is
amended by restating such SECTION 9.2.3(b) in its entirety effective as of
December 30, 1999, as follows:

                  "(b) INTEREST COVERAGE RATIO. Permit the Interest Coverage
         Ratio for any Reference Period set forth below, as measured at the end
         of such Reference Period, to be less than the amount set forth opposite
         such Reference Period in the table below:

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

     Reference Period       Fiscal Quarters in          Minimum Ratio
                             Reference Period
  --------------------------------------------------------------------------
     01/01/00-03/31/00               1                    2.35:1.00
  --------------------------------------------------------------------------
     01/01/00-06/30/00               2                    2.35:1.00
  --------------------------------------------------------------------------
     01/01/00-09/30/00               3                    1.85:1.00
  --------------------------------------------------------------------------
     01/01/00-12/31/00               4                    1.75:1.00
  --------------------------------------------------------------------------

<PAGE>   8
                                       -8-

                  (d) SECTION 9.2.4. SECTION 9.2.4 is amended by restating such
SECTION 9.2.4 in its entirety effective as of December 30, 1999, as follows:

                  "SECTION 9.2.4. RESTRICTED PAYMENTS. Make or extend or enter
         into any agreement to make any Restricted Payments, EXCEPT:

                           (a) the making by any Subsidiary of the Borrower (i)
                  to the Borrower or to any other Subsidiary of the Borrower of
                  any Restricted Payments of the kind described in CLAUSE (c) of
                  the definition "RESTRICTED PAYMENTS", and (ii) of any
                  Restricted Payments of the kind described in CLAUSE (b) of the
                  definition "RESTRICTED PAYMENTS"; PROVIDED, HOWEVER, that no
                  such Restricted Payments of the kind described in CLAUSE (b)
                  of the definition "RESTRICTED PAYMENTS" shall in any event be
                  permitted unless any such Restricted Payments on any shares of
                  a particular class of Capital Stock of a corporation shall be
                  made on or with respect to all of the issued and outstanding
                  shares of such class of Capital Stock of such corporation on a
                  PRO RATA basis, at the same time and on the same terms;

                           (b) the declaration of cash dividends on the Capital
                  Stock of the Borrower, in an aggregate amount not to exceed
                  $30,300,000 in fiscal year 2000, by the Borrower and the
                  payment of such cash dividends within sixty (60) days after
                  the declaration thereof; PROVIDED THAT at the time of the
                  declaration of such cash dividends, each of the Special
                  Covenant Conditions shall be satisfied, it being expressly
                  understood and agreed that the Borrower shall in any event be
                  permitted to pay cash dividends within sixty (60) days after
                  the declaration thereof if at the time of the declaration of
                  such cash dividends, each of the Special Covenant Conditions
                  (determined after giving PRO FORMA effect to the payment of
                  such cash dividends) shall be satisfied;

                           (c) the making by the Borrower of any Restricted
                  Payments of the kind described in CLAUSE (b) of the definition
                  "RESTRICTED PAYMENTS", solely in connection with and as
                  required by the Borrower's employee benefit plans or the
                  Borrower's dividend reinvestment plan;

                           (d) the making by the Borrower of any Restricted
                  Payments of the kind described in CLAUSE (d) of the definition
                  "RESTRICTED PAYMENTS"; PROVIDED, HOWEVER, that no such
                  Restricted Payments by the Borrower that would otherwise be
                  permitted by this CLAUSE (d) shall in any event be permitted
                  unless each of the Special Covenant Conditions shall be
                  satisfied both at the time of the making of such Restricted
                  Payments by the Borrower and also after giving effect thereto;
                  and

                           (e) Restricted Payments, not otherwise permitted by
                  any of the other CLAUSES of this SECTION 9.2.4, by the
                  Borrower to any of its Affiliates, in each case only if (i) at
                  the time of the making by the Borrower of any such Restricted
                  Payments, and after giving effect thereto, each of the
<PAGE>   9
                                       -9-

                  Special Covenant Conditions shall be satisfied, and (ii) such
                  Restricted Payments shall not otherwise be prohibited by
                  SECTION 9.2.8.

         The Borrower shall not, and shall not cause or permit any of its
         Subsidiaries to, create or permit to exist any contractual restrictions
         on the making of Restricted Payments by Subsidiaries of the Borrower to
         the Borrower or to any other Subsidiaries of the Borrower which
         materially impair or which will be reasonably likely to materially
         impair the ability of the Borrower to perform any of its payment
         Obligations under this Agreement or the Notes."

                  (e) SECTION 9.2.5. SECTION 9.2.5 is amended by inserting as a
new full non-indented paragraph immediately following the last subparagraph
thereof the following proviso:

         "; PROVIDED, HOWEVER, that notwithstanding anything in this Agreement
         to the contrary, the Borrower shall not engage in any Sale of all or
         any part of, or otherwise transfer or dilute, its ownership interest in
         Friday, and shall not cause or permit Friday to engage in any Sale of
         all or any part of, or to otherwise transfer or dilute, its ownership
         interest in Chiquita Processed Foods."

                  (f) SECTION 9.2.6(b). SECTION 9.2.6(b) is amended by deleting
the Dollar amount "$50,000,000" appearing in SUB-CLAUSE (i) of such SECTION
9.2.6(b), and by inserting in place thereof the following phrase "the Investment
Cap".

                  (g) SECTION 9.2.7. SECTION 9.2.7 is amended by inserting the
letter "(a)" prior to the first sentence thereof, deleting the date "January 1,
2002" and inserting the date "January 1, 2000" in place thereof in the first
sentence of such SECTION 9.2.7(a), and inserting new paragraph (b) at the end of
such SECTION 9.2.7 as follows:

                  "(b) Cause or permit the Consolidated Capital Expenditures of
         the Borrower and its Subsidiaries for the calendar years ending
         December 31, 2000 and December 31, 2001, to exceed $75,000,000 per
         calendar year; PROVIDED, HOWEVER, that for the purposes of the
         foregoing calculations, there shall be excluded the aggregate amount of
         all capital expenditures made by the Borrower or any of its
         Subsidiaries (i) with Capital Stock of the Borrower, or (ii) with the
         net cash proceeds (A) from the issue or Sale of Capital Stock of the
         Borrower, (B) from Sales and from Sale and Leaseback Transactions that
         are not Permitted Dispositions but are otherwise permitted under
         SECTION 9.2.5."

                  (h) SECTION 9.2.10. SECTION 9.2 is amended by inserting the
following new SECTION 9.2.10 immediately after the existing SECTION 9.2.9:

                  "Section 9.2.10. RESTRICTIONS ON REPURCHASING PUBLIC DEBT.
         Neither Borrower nor its Subsidiaries shall make any payment or other
         distribution on account of the redemption, repurchase, defeasance or
         other acquisition for value of any of the Borrower's public debt,
         whether senior or subordinated, except to the extent of (i) the
         proceeds from a $50,000,000 term loan incurred by Chiquita

<PAGE>   10
                                       -10-

         Processed Foods, (ii) the proceeds from any unsecured public debt
         issues of the Borrower, which would otherwise qualify as Indebtedness
         for Borrowed Money permitted by SECTION 9.2.1, or (iii) any excess
         payments available for such purpose pursuant to SECTION 3.3.3(C)
         hereof."

         SECTION 2.8.  AMENDMENTS TO EVENTS OF DEFAULT.

                  (a) SECTION 10.1.8. SECTION 10.1.8 is amended by restating
such SECTION 10.1.8 in its entirety as follows:

                  "SECTION 10.1.8. IMPAIRMENT OF LOAN DOCUMENT, ETC. (i) Any
         Loan Document shall (except in accordance with its terms), in whole or
         in part, terminate, cease to be effective, or cease to be the legally
         valid, binding and enforceable obligation of the Borrower or shall
         cease to create valid and perfected security interests in and Liens
         (subject only to Permitted Liens) upon the Collateral purported to be
         covered by the Collateral Documents; or (ii) the Borrower shall,
         directly or indirectly, contest in any manner such effectiveness,
         validity, binding nature or enforceability of any of the Collateral
         Documents."

         SECTION 2.9.  AMENDMENT TO THE AGENTS.

         (a) SECTION 11.4. Section 11.4 is amended by restating such SECTION
11.4 in its entirety as follows:

                  "SECTION 11.4.  LOAN DOCUMENTS, ETC.

                  (a) Each of the Lenders and the other Agents hereby further
         authorizes the Administrative Agent, on behalf of and for the benefit
         of Lenders and the other Agents, to be the agent for and representative
         of the Lenders and the other Agents with respect to the Collateral and
         the Collateral Documents, and to enter into any other Loan Documents
         and to take all action contemplated thereby.

                  (b) Anything herein express or implied to the contrary
         notwithstanding, without any notice to or consent, approval or
         authorization from any of the Lenders or the Agents, the Administrative
         Agent may from time to time execute any Instruments necessary to (i)
         release any Liens encumbering any item of Collateral that is (in each
         such case) the subject of a Sale permitted by the Loan Documents or to
         which Required Lenders (or such other Lenders as may be required to
         give such consent under SECTION 13.1) have otherwise consented, or (ii)
         release any guarantor from any guaranty if and to the extent that such
         release is otherwise permitted by the terms of the Loan Documents.

                  (c) Anything contained in any of the Loan Documents to be
         contrary notwithstanding, the Administrative Agent, each of the Lenders
         and the other Agents hereby agree that (i) none of the Lenders shall
         have any rights individually to realize upon any of the Collateral or
         to enforce any guaranty provided by any Loan Document, it being
         understood and agreed that all

<PAGE>   11
                                       -11-

         powers, rights and remedies with respect to the Collateral and any
         guaranty may be exercised solely by the Administrative Agent for the
         benefit of the Lenders and the Agents in accordance with the terms of
         the Loan Documents and (ii) in the event of a foreclosure by the
         Administrative Agent on any of the Collateral pursuant to a public or
         private Sale, the Administrative Agent or any Lender may be the
         purchaser of any or all of such Collateral at any such Sale, and the
         Administrative Agent, as agent for and representative of the Lenders
         (but not any Lender or Lenders in its or their respective individual
         capacities, unless the Required Lenders shall otherwise agree in
         writing), shall be entitled, for the purpose of bidding and making
         settlement or payment of the purchase price for all or any portion of
         the Collateral sold at any such Sale, to use and apply any of the
         Obligations as a credit on account of the purchase price payable by the
         Administrative Agent for any Collateral at such Sale."

         SECTION 2.10.  AMENDMENT TO MISCELLANEOUS.

         (a) SECTION 13.1(b). PARAGRAPH (b) of SECTION 13.1 is amended by
restating such SECTION 13.1(b) in its entirety, as follows:

                  "(b) (i) which would modify SECTION 7.2.5 or this SECTION
         13.1, change the definition of "REQUIRED LENDERS" or "COMMITMENT
         TERMINATION EVENT" or "COMMITMENT TERMINATION DATE" or "SUPER-MAJORITY
         LENDERS" or "NINETY PERCENT MAJORITY LENDERS", release the Guaranty, or
         increase the aggregate amount of all of the Commitments, shall be
         effective unless consented to by all of the Lenders, and (ii) which
         would release all or substantially all of the Collateral, shall be
         effective unless consented to by the Ninety Percent Majority Lenders;"

         SECTION 2.11.  AMENDMENTS TO EXHIBITS.

                  (a) EXHIBIT D -- COMPLIANCE CERTIFICATE. EXHIBIT D to the
Credit Agreement is amended by replacing the existing EXHIBIT D in its entirety
with new EXHIBIT D, a copy of which is attached to this Amendment.

                  (b) EXHIBIT J -- COMMITMENT AMOUNT CERTIFICATE. The Exhibits
to the Credit Agreement are amended by inserting immediately following the
existing EXHIBIT I a new EXHIBIT J, a copy of which is attached to this
Amendment.

         SECTION 2.12.  AMENDMENTS TO SCHEDULES.

                  (a) SCHEDULE I -- AGENTS AND LENDERS. SCHEDULE I to the Credit
Agreement is amended by replacing the existing SCHEDULE I in its entirety with
new SCHEDULE I, a copy of which is attached to this Amendment.

             ARTICLE III -- REPRESENTATIONS, WARRANTIES AND COVENANT

         The Borrower represents and warrants to and covenants with each Agent
and Lender as follows:

<PAGE>   12
                                       -12-

         SECTION 3.1. REPRESENTATIONS IN LOAN DOCUMENTS. Each of the
representations and warranties made by or on behalf of the Borrower to the
Agents and the Lenders in the Loan Documents was true and correct in all
material respects when made and is true and correct in all material respects on
and as of the date hereof, except, in each case, (a) as affected by the
consummation of the transactions contemplated by the Loan Documents (including
this Agreement), (b) to the extent that any such representation or warranty
relates by its express terms solely to a prior date, and (c) in the case of the
representations set forth in SECTION 8.6 regarding litigation, to the extent
that the information contained in SECTION 8.6 of the DISCLOSURE SCHEDULE has
been updated since the Effective Date by written materials provided by the
Borrower to the Administrative Agent and the Lenders.

         SECTION 3.2. CORPORATE AUTHORITY, ETC. The execution and delivery by
the Borrower of each Amendment Document entered into by the Borrower on or prior
to the date hereof, and the performance by the Borrower of its agreements and
obligations under each such Amendment Document, have been duly and properly
authorized by all necessary corporate or other action on the part of the
Borrower, and do not and will not conflict with, result in any violation of, or
constitute any default under (a) any provision of any Governing Document of the
Borrower, (b) any Contractual Obligation of the Borrower, including without
limitation any indenture pursuant to which the Borrower has incurred
Indebtedness, or (c) any Applicable Law.

         SECTION 3.3. VALIDITY, ETC. Each Amendment Document entered into by the
Borrower on or prior to the date hereof has been duly executed and delivered by
the Borrower and constitutes the legal, valid and binding obligation of the
Borrower, enforceable against the Borrower in accordance with its terms, except
as such enforceability may be limited by bankruptcy, reorganization, insolvency,
moratorium or other similar laws at the time in effect affecting the
enforceability of the rights of creditors generally and to general equitable
principles. The Borrower hereby ratifies and confirms all of the Obligations and
all terms and conditions of the Credit Agreement in all respects, including,
without limitation, the obligations of the Borrower as Guarantor of the
Subsidiary Reimbursement Obligations, pursuant to ARTICLE VI of the Credit
Agreement.

         SECTION 3.4. NO DEFAULTS. Immediately after giving effect to this
Agreement, no Defaults or Events of Default are or will be continuing under the
Credit Agreement.

         SECTION 3.5. AMENDMENT FEE. In consideration of the execution and
delivery of this Agreement by the Administrative Agent and the Required Lenders,
the Borrower hereby promises to pay to the Administrative Agent on or prior to
the third Business Day after the date hereof, for the account of each of the
Lenders (each, a "CONSENTING LENDER") that (a) has sent confirmation of its
approval of this Amendment on or prior to January 13, 2000, AND (b) (i) executes
and delivers this Agreement and (ii) delivers and releases to the Administrative
Agent or its special counsel, by the second Business Day after the date hereof,
an execution copy of this Agreement signed by such Lender (or a facsimile copy
thereof), an amendment fee ("AMENDMENT FEE") equal to 1/8th of 1% (.00125) of
the Commitment of each such Consenting Lender in effect as of January 31, 2000.

<PAGE>   13
                                       -13-

                 ARTICLE IV -- PROVISIONS OF GENERAL APPLICATION

         SECTION 4.1. EFFECTIVENESS. This Agreement shall become effective upon
the satisfaction of each of the following conditions; PROVIDED, HOWEVER, that
upon satisfaction of all of such conditions, this Agreement shall be effective
as of 5:00 p.m. on the Amendment Date, regardless of the date on which such
conditions are satisfied:

                  (a) PLEDGE AGREEMENT. The Administrative Agent shall have
received counterparts of the Pledge Agreement, dated as of the Amendment Date,
duly executed and delivered by the Borrower and the Collateral Agent, together
with:

                           (i) all certificates and other Instruments
representing Pledged Collateral then to be pledged thereunder;

                           (ii) with respect to Pledged Collateral, if any,
consisting of book-entry shares, evidence that all actions described in the
Pledge Agreement which are necessary to create and perfect the security
interests and Liens therein pursuant to the Pledge Agreement in accordance with
Article 8 of the Uniform Commercial Code have been taken;

                           (iii) with respect to the Pledged Collateral,
executed copies of financing statements (Form UCC-1) in appropriate form for
filing under the Uniform Commercial Code of each jurisdiction as may be
necessary to perfect the security interests in limited liability company
interests or other Pledged Collateral purported to be created by the Pledge
Agreement; and

                           (iv) evidence that all such other actions have been
taken as may be necessary or, in the reasonable opinion of the Collateral Agent,
desirable to perfect the security interests and Liens purported to be created by
the Pledge Agreement (including evidence that Friday has duly recorded the
security interests and Liens created by the Pledge Agreement in its limited
liability company books).

                  (b) SECURITY AGREEMENT; UCC FILINGS; ETC. The Administrative
Agent shall have received counterparts of the Security Agreement, dated as of
the Amendment Date, duly executed and delivered by the Borrower and the
Collateral Agent, together with:

                           (i) executed copies of financing statements (Form
UCC-1) in appropriate form for filing under the Uniform Commercial Code of each
jurisdiction as may be necessary to perfect the security interests and Liens
purported to be created by the Security Agreement;

                           (ii) certified copies of requests for information or
copies (Form UCC-11), or equivalent reports, each of recent date, listing all
effective financing statements that name the Collateral Agent as debtor and that
are filed in the jurisdictions referred to in CLAUSE (a), together with copies
of such financing statements (none of which shall cover the Collateral, EXCEPT
(A) those with respect to which appropriate termination statements executed by
the secured party thereunder

<PAGE>   14
                                       -14-

have been delivered to the Administrative Agent, and (B) to the extent
evidencing Liens permitted by the Loan Documents); and

                           (iii) evidence that all other action necessary or, in
the reasonable opinion of the Collateral Agent, desirable to perfect and protect
the security interests and Liens purported to be created by the Pledge Agreement
and the Security Agreement have been properly taken by the Borrower.

                  (c) THIS AGREEMENT. The Administrative Agent shall have
received counterparts of this Agreement, dated as of the Amendment Date, duly
executed and delivered by the Borrower and the Required Lenders.

                  (d) OPINION. The Administrative Agent shall have received
favorable opinions addressed to the Agents and Lenders in form and substance
satisfactory to the Administrative Agent from in-house counsel to the Borrower
and its Subsidiaries with respect to New York law and certain matters of New
Jersey corporate and Delaware limited liability company law.

                  (e) AMENDMENT FEE AND OTHER EXPENSES. The Administrative Agent
shall have received from the Borrower (i) payment of the Amendment Fee for the
account of each Consenting Lender, and (ii) payment in full of all of the
reasonable out-of-pocket costs and expenses of the Administrative Agent
(including reasonable counsel fees and disbursements) incurred in connection
with the Amendment Documents for which invoices have been submitted on or prior
to the Amendment Date.

                  (f) RESOLUTIONS, ETC. The Administrative Agent shall have
received:

                           (x) from the Borrower, a certificate, dated as of the
Amendment Date, of its secretary or any assistant secretary as to:

                                    (i) resolutions of its board of directors
then in full force and effect authorizing the execution, delivery and
performance by the Borrower, of this Agreement and each of the other Amendment
Documents;

                                    (ii) the incumbency and signatures of the
responsible officers of the Borrower authorized to act with respect to the
Borrower, this Agreement and each of the other Amendment Documents (upon which
certificate each of the Agents and the Lenders may conclusively rely until the
Administrative Agent shall have received a further certificate of the Borrower
canceling or amending such prior certificate, which further certificate shall be
reasonably satisfactory to the Administrative Agent);

                                    (iii) each Governing Document of the
Borrower and Friday; and

                                    (iv) each shareholder agreement, stock
subscription agreement, voting agreement, voting trust agreement, securities
purchase agreement and other similar agreement to which the Borrower or Friday
is a party; and

<PAGE>   15
                                       -15-

                           (y) such other similar documents (certified as of the
Closing Date) as the Administrative Agent may reasonably request with respect to
any matter relevant to this Agreement or the other Loan Documents or the
transactions contemplated hereby or thereby.

         Each of such documents shall be in form and substance reasonably
satisfactory to the Administrative Agent and the Required Lenders.

                  (g) CERTIFICATES OF GOOD STANDING, ETC. The Administrative
Agent shall have received (a) the Governing Documents and other organizational
documents of the Borrower, Friday and Chiquita Processed Foods as in effect on
the Amendment Date, certified as of a recent date by the Secretary of State (or
other similar applicable Governmental Authority) of the jurisdiction of
incorporation or organization of such entity, and (b) a good standing
certificate as of a recent date (i) for the Borrower, Friday and Chiquita
Processed Foods from the Secretary of State of the jurisdiction of incorporation
or organization of such entity, and (ii) for the Borrower and Friday from the
Secretary of State in each State or other jurisdiction where the failure of such
entity to be qualified to do business as a foreign corporation or other entity
could reasonably be expected to have a Materially Adverse Effect.

                  (h) MISCELLANEOUS CERTIFICATES, INFORMATION. The
Administrative Agent shall have received such other certificates or information
(certified as of the Amendment Date) as the Administrative Agent may reasonably
request with respect to any matter relevant to this Agreement or the other Loan
Documents or the transactions contemplated hereby or thereby.

         SECTION 4.2. MISCELLANEOUS. Except as otherwise expressly provided by
this Agreement, all of the terms, conditions and provisions of the Credit
Agreement and each of the other Loan Documents shall remain unaltered, and such
Loan Documents are in full force and effect. This Agreement and each of the
other Amendment Documents is a Loan Document for all purposes of the Credit
Agreement. This Agreement and the rights and obligations hereunder of each of
the parties hereto shall in all respects be construed in accordance with and
governed by the internal laws of the State of New York, without regard to
conflict of laws principles except for Section 5-1401 of the General Obligations
Law of the State of New York. This Agreement may be executed in any number of
counterparts and by different parties hereto in separate counterparts, but all
of such counterparts shall together constitute but one and the same agreement.
In making proof of this Agreement, it shall not be necessary to produce or
account for more than one counterpart hereof signed by each of the parties
hereto.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.]

<PAGE>   16
                                       -16-

         IN WITNESS WHEREOF, the parties hereto have caused this AMENDMENT NO. 4
to be executed by their respective authorized officers as of the date first
above written.

                                    THE BORROWER:

                                    CHIQUITA BRANDS INTERNATIONAL, INC.

                                    By:    /s/
                                       -------------------------------------
                                        Name:  Gerald R. Kondritzer
                                        Title: Vice President and Treasurer

                                    THE AGENTS AND LENDERS:

                                    BANKBOSTON, N.A., AS ADMINISTRATIVE AGENT,
                                    AS ONE OF THE CO-AGENTS, AND AS ONE OF THE
                                    LENDERS

                                    By:    /s/
                                       -------------------------------------
                                        Name:  Robert F. Milordi
                                        Title: Managing Director

                                    ING BANK N.V., AS ONE OF THE CO-AGENTS AND
                                    AS ONE OF THE LENDERS

                                    By:    /s/
                                       -------------------------------------
                                        Name:  J.J. Heuff
                                        Title: Senior Relationship Manager

                                    By:    /s/
                                       -------------------------------------
                                        Name:  H.W.L. Engelhart
                                        Title: Senior Relationship Manager

<PAGE>   17
                                       -17-

                                    PNC BANK, NATIONAL ASSOCIATION, AS ONE OF
                                    THE CO-AGENTS AND AS ONE OF THE LENDERS

                                    By:    /s/
                                       -------------------------------------
                                        Name: Bruce A. Kintner
                                        Title: Vice President

                                    THE SUMITOMO BANK, LIMITED, AS ONE OF THE
                                    LENDERS

                                    By:    /s/
                                       -------------------------------------
                                        Name:  John H. Kemper
                                        Title: Senior Vice President

                                    BANK OF AMERICA, N.A., AS ONE OF THE LENDERS

                                    By:    /s/
                                       -------------------------------------
                                        Name:  J. Casey Cosgrove
                                        Title: Vice President

                                    CHRISTIANIA BANK OG KREDITKASSE ASA, NEW
                                    YORK BRANCH, AS ONE OF THE LENDERS

                                    By:    /s/
                                       -------------------------------------
                                        Name:  Hans Chr. Kjelsrud
                                        Title: Senior Vice President

                                    By:    /s/
                                       -------------------------------------
                                        Name:  Martin Lunder
                                        Title: Senior Vice President

<PAGE>   18
                                       -18-

                                    THE MITSUBISHI TRUST AND BANKING
                                    CORPORATION, AS ONE OF THE LENDERS

                                    By:    /s/
                                       -------------------------------------
                                        Name:  Nobuo Tominaga
                                        Title: Chief Manager

                                    FIRSTAR BANK, N.A., AS ONE OF THE LENDERS

                                    By:    /s/
                                       -------------------------------------
                                        Name: Derek S. Roudebush
                                        Title: Vice President

                                    SUNTRUST BANK, N.A., AS ONE OF THE LENDERS

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

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