Document:

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                                                                    EXHIBIT 4.3

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                              WORLD ACCESS, INC.,

                                     Issuer

                                       TO

                           FIRST UNION NATIONAL BANK,

                                    Trustee

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

                                   Indenture

                          Dated as of December 7, 1999

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

                                  $300,000,000

                          13.25% Senior Notes due 2008

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                               WORLD ACCESS, INC.

               Reconciliation and tie between Trust Indenture Act
              of 1939 and Indenture, dated as of December 7, 1999

<TABLE>
<CAPTION>
Trust Indenture
  Act Section                                                 Indenture Section
---------------                                               -----------------
<S>   <C>   <C>                                               <C>
(ss.) 310(a)(1).............................................                607
         (a)(2).............................................                607
         (b)   .............................................                608
(ss.) 312(c)................................................                701
(ss.) 313(a)................................................                702
(ss.) 313(c)................................................                703
(ss.) 314(a)................................................                703
         (a)(4).............................................             1008(a)
         (c)(1).............................................                102
         (c)(2).............................................                102
         (e)   .............................................                102
(ss.) 315(b)................................................                601
(ss.) 316(a)(last sentence)................................. 101 ("Outstanding")
         (a)(1)(A)..........................................           502, 512
         (a)(1)(B)..........................................                513
         (b)   .............................................                508
         (c)   .............................................              104(d)
(ss.) 317(a)(1).............................................                503
         (a)(2).............................................                504
         (b)   .............................................               1003
(ss.) 318(a)................................................                111
</TABLE>

 Note:   This reconciliation and tie shall not, for any purpose, be deemed to
         be a part of the Indenture.

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                              TABLE OF CONTENTS

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<S>                                                                                                            <C>
PARTIES ..........................................................................................................1
RECITALS OF THE COMPANY...........................................................................................1

ARTICLE ONE                    DEFINITIONS AND OTHER PROVISIONS
                               OF GENERAL APPLICATION
         SECTION 101.          Definitions........................................................................1
         SECTION 102.          Compliance Certificates and Opinions..............................................22
         SECTION 103.          Form of Documents Delivered to Trustee............................................22
         SECTION 104.          Acts of Holders...................................................................23
         SECTION 105.          Notices, Etc., to Trustee, Company................................................24
         SECTION 106.          Notice to Holders; Waiver.........................................................24
         SECTION 107.          Effect of Headings and Table of Contents..........................................25
         SECTION 108.          Successors and Assigns............................................................25
         SECTION 109.          Separability Clause...............................................................25
         SECTION 110.          Benefits of Indenture.............................................................25
         SECTION 111.          Governing Law.....................................................................25
         SECTION 112.          Legal Holidays....................................................................26

ARTICLE TWO                    NOTE FORMS
         SECTION 201.          Forms Generally...................................................................26
         SECTION 202.          Restrictive Legends...............................................................27

ARTICLE THREE                  THE NOTES
         SECTION 301.          Title and Terms...................................................................27
         SECTION 302.          Denominations.....................................................................28
         SECTION 303.          Execution, Authentication, Delivery and Dating....................................28
         SECTION 304.          Temporary Notes...................................................................29
         SECTION 305.          Registration, Registration of Transfer and Exchange...............................30
         SECTION 306.          Mutilated, Destroyed, Lost and Stolen Notes.......................................31
         SECTION 307.          Payment of Interest; Interest Rights Preserved....................................31
         SECTION 308.          Persons Deemed Owners.............................................................32
         SECTION 309.          Cancellation......................................................................33
         SECTION 310.          Computation of Interest...........................................................33
         SECTION 311.          Book-Entry Provisions for Global Notes............................................33

ARTICLE FOUR                   SATISFACTION AND DISCHARGE
         SECTION 401.          Satisfaction and Discharge of Indenture...........................................34
         SECTION 402.          Application of Trust Money........................................................35
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<S>      <C>                   <C>                                                                             <C>
ARTICLE FIVE                   REMEDIES
         SECTION 501.          Events of Default.................................................................36
         SECTION 502.          Acceleration of Maturity; Rescission and Annulment................................38
         SECTION 503.          Collection of Indebtedness and Suits for Enforcement by Trustee...................38
         SECTION 504.          Trustee May File Proofs of Claim..................................................39
         SECTION 505.          Trustee May Enforce Claims Without Possession of Notes............................40
         SECTION 506.          Application of Money Collected....................................................40
         SECTION 507.          Limitation on Suits...............................................................41
         SECTION 508.          Unconditional Right of Holders to Receive Principal, Premium and
                               Interest..........................................................................41
         SECTION 509.          Restoration of Rights and Remedies................................................42
         SECTION 510.          Rights and Remedies Cumulative....................................................42
         SECTION 511.          Delay or Omission Not Waiver......................................................42
         SECTION 512.          Control by Holders................................................................42
         SECTION 513.          Waiver of Past Defaults...........................................................43
         SECTION 514.          Waiver of Stay or Extension Laws..................................................43

ARTICLE SIX                    THE TRUSTEE
         SECTION 601.          Notice of Defaults................................................................43
         SECTION 602.          Certain Rights of Trustee.........................................................44
         SECTION 603.          Trustee Not Responsible for Recitals or Issuance of Notes.........................45
         SECTION 604.          May Hold Notes....................................................................46
         SECTION 605.          Money Held in Trust...............................................................46
         SECTION 606.          Compensation and Reimbursement....................................................46
         SECTION 607.          Corporate Trustee Required; Eligibility...........................................47
         SECTION 608.          Resignation and Removal; Appointment of Successor.................................47
         SECTION 609.          Acceptance of Appointment by Successor............................................48
         SECTION 610.          Merger, Conversion, Consolidation or Succession to Business.......................49

ARTICLE SEVEN                  HOLDERS LISTS AND REPORTS BY
                               TRUSTEE AND COMPANY
         SECTION 701.          Disclosure of Names and Addresses of Holders......................................49
         SECTION 702.          Reports by Trustee................................................................49
         SECTION 703.          Reports by Company................................................................49

ARTICLE EIGHT                  CONSOLIDATION, MERGER, CONVEYANCE,
                               TRANSFER OR LEASE
         SECTION 801.          Company May Consolidate, Etc., Only on Certain Terms..............................50
         SECTION 802.          Successor Substituted.............................................................51
         SECTION 803.          Notes to Be Secured in Certain Events.............................................52
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<S>      <C>                   <C>                                                                             <C>
ARTICLE NINE                   SUPPLEMENTAL INDENTURES
         SECTION 901.          Supplemental Indentures Without Consent of Holders................................52
         SECTION 902.          Supplemental Indentures with Consent of Holders...................................53
         SECTION 903.          Execution of Supplemental Indentures..............................................54
         SECTION 904.          Effect of Supplemental Indentures.................................................54
         SECTION 905.          Conformity with Trust Indenture Act...............................................54
         SECTION 906.          Reference in Notes to Supplemental Indentures.....................................54
         SECTION 907.          Notice of Supplemental Indentures.................................................54

ARTICLE TEN                    COVENANTS
         SECTION 1001.         Payment of Principal, Premium, if Any, and Interest...............................55
         SECTION 1002.         Maintenance of Office or Agency...................................................55
         SECTION 1003.         Money for Note Payments to Be Held in Trust.......................................55
         SECTION 1004.         Corporate Existence...............................................................57
         SECTION 1005.         Payment of Taxes and Other Claims.................................................57
         SECTION 1006.         Maintenance of Properties.........................................................57
         SECTION 1007.         Insurance.........................................................................57
         SECTION 1008.         Statement by Officers as to Default...............................................58
         SECTION 1009.         Provision of Financial Statements and Reports.....................................58
         SECTION 1010.         Repurchase of Notes upon Change of Control........................................58
         SECTION 1011.         Limitation on Indebtedness........................................................60
         SECTION 1012.         Limitation on Restricted Payments.................................................63
         SECTION 1013.         Limitation on Dividend and Other Payment Restrictions Affecting
                               Restricted Subsidiaries...........................................................66
         SECTION 1014.         Limitation on the Issuance and Sale of Capital Stock of Restricted
                               Subsidiaries......................................................................67
         SECTION 1015.         Limitation on Transactions with Stockholders and Affiliates.......................67
         SECTION 1016.         Limitation on Liens...............................................................69
         SECTION 1017.         Limitation on Asset Sales.........................................................69
         SECTION 1018.         Limitation on Issuances of Guarantees of Indebtedness by Restricted
                               Subsidiaries......................................................................71
         SECTION 1019.         Business of the Company; Restriction on Transfers of Existing
                               Business..........................................................................72
         SECTION 1020.         Limitation on Investments in Unrestricted Subsidiaries............................72
         SECTION 1021.         Limitation on Sale-Leaseback Transactions.........................................72
         SECTION 1022.         Waiver of Certain Covenants.......................................................73

ARTICLE ELEVEN                 REDEMPTION OF NOTES
         SECTION 1101.         Right of Redemption...............................................................73
         SECTION 1102.         Applicability of Article..........................................................73
         SECTION 1103.         Election to Redeem; Notice to Trustee.............................................74
         SECTION 1104.         Selection by Trustee of Notes to Be Redeemed......................................74
         SECTION 1105.         Notice of Redemption..............................................................74
         SECTION 1106.         Deposit of Redemption Price.......................................................75
         SECTION 1107.         Notes Payable on Redemption Date..................................................75
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<S>      <C>                   <C>                                                                             <C>
         SECTION 1108.         Notes Redeemed in Part............................................................76
ARTICLE TWELVE                 SECURITY
         SECTION 1201.         Security..........................................................................76

ARTICLE THIRTEEN               DEFEASANCE AND COVENANT DEFEASANCE
         SECTION 1301.         Company's Option to Effect Defeasance or Covenant Defeasance......................77
         SECTION 1302.         Defeasance and Discharge..........................................................77
         SECTION 1303.         Covenant Defeasance...............................................................78
         SECTION 1304.         Conditions to Defeasance or Covenant Defeasance...................................78
         SECTION 1305.         Deposited Money and U.S. Government Obligations to Be Held in
                               Trust; Other Miscellaneous Provisions.............................................80
         SECTION 1306.         Reinstatement.....................................................................81
</TABLE>

TESTIMONIUM

SIGNATURES AND SEALS

Schedule A        World Access Charitable Trust Arrangements

EXHIBIT A         Form of Note

                                       iv

<PAGE>   7

                  INDENTURE, dated as of December 7, 1999, between WORLD
ACCESS, INC., a corporation duly organized and existing under the laws of the
State of Delaware (herein called the "Company"), having its principal office at
945 East Paces Ferry Road, Suite 2200, Atlanta, Georgia 30326, as issuer, and
FIRST UNION NATIONAL BANK, a national banking association, as Trustee (the
"Trustee").

                            RECITALS OF THE COMPANY

                  WHEREAS, the Company and FaciliCom International, Inc., a
Delaware corporation ("FaciliCom") and certain shareholders of FaciliCom have
entered into an Agreement and Plan of Merger, dated as of August 17, 1999, with
respect to the Merger (the "Merger") of FaciliCom with and into the Company and
in connection with the Merger the Company has offered to exchange its 13.25%
Senior Notes due 2008 (the "Notes") and certain other consideration for
FaciliCom's outstanding 10 1/2% Senior Notes due 2008 (the "FaciliCom Notes");

                  WHEREAS, the Company has duly authorized the creation of an
issue of the Notes, of substantially the tenor and amount hereinafter set
forth, and to provide therefor the Company has duly authorized the execution
and delivery of this Indenture.

                  WHEREAS, this Indenture is subject to the provisions of the
Trust Indenture Act that are required to be part of this Indenture and shall,
to the extent applicable, be governed by such provisions.

                  WHEREAS, all things necessary have been done to make the
Notes, when executed by the Company and authenticated and delivered hereunder
and duly issued by the Company, the valid obligations of the Company and to
make this Indenture a valid agreement of the Company, in accordance with their
and its terms.

                  NOW, THEREFORE, THIS INDENTURE WITNESSETH:

                  For and in consideration of the premises and the purchase of
the Notes by the Holders thereof, it is mutually covenanted and agreed, for the
equal and proportionate benefit of all Holders of the Notes, as follows:

                                  ARTICLE ONE

                        DEFINITIONS AND OTHER PROVISIONS
                             OF GENERAL APPLICATION

SECTION 101.  Definitions.

<PAGE>   8

                  For all purposes of this Indenture, except as otherwise
expressly provided or unless the context otherwise requires:

                  (a) the terms defined in this Article have the meanings
         assigned to them in this Article, and include the plural as well as
         the singular;

                  (b) all other terms used herein which are defined in the
         Trust Indenture Act, either directly or by reference therein, have the
         meanings assigned to them therein, and the terms "cash transaction"
         and "self-liquidating paper", as used in TIA Section 311, shall have
         the meanings assigned to them in the rules of the Commission adopted
         under the Trust Indenture Act;

                  (c) all accounting terms not otherwise defined herein have
         the meanings assigned to them in accordance with GAAP; and

                  (d) the words "herein", "hereof" and "hereunder" and other
         words of similar import refer to this Indenture as a whole and not to
         any particular Article, Section or other subdivision.

                  "Acquired Indebtedness" means Indebtedness of a Person
existing at the time such Person becomes a Restricted Subsidiary or assumed in
connection with an Asset Acquisition by the Company or a Restricted Subsidiary
and not incurred in connection with, or in anticipation of, such Person
becoming a Restricted Subsidiary or such Asset Acquisition; provided that
Indebtedness of such Person which is redeemed, defeased, retired or otherwise
repaid at the time of or immediately upon the consummation of the transactions
by which such Person becomes a Restricted Subsidiary or such Asset Acquisition
shall not be considered as Indebtedness.

                  "Act", when used with respect to any Holder, has the meaning
specified in Section 104.

                  "Affiliate" means, as applied to any Person, any other Person
directly or indirectly controlling, controlled by, or under direct or indirect
common control with, such Person. For purposes of this definition, "control"
(including, with correlative meanings, the terms "controlling", "controlled by"
and "under common control with"), as applied to any Person, is defined to mean
the possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of such Person, whether through the
ownership of voting securities, by contract or otherwise.

                  "Armstrong" means Armstrong Holdings, Inc.

                  "Asset Acquisition" means (i) an investment by the Company or
any of its Restricted Subsidiaries in any other Person pursuant to which such
Person shall become a Restricted Subsidiary of the Company or shall be merged
into or consolidated with the Company

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or any of its Restricted Subsidiaries or (ii) an acquisition by the Company or
any of its Restricted Subsidiaries of the property and assets of any Person
(other than the Company or any of its Restricted Subsidiaries) that constitute
substantially all of a division or line of business of such Person.

                  "Asset Disposition" means the sale or other disposition by
the Company or any of its Restricted Subsidiaries (other than to the Company or
another Restricted Subsidiary of the Company) of (i) all or substantially all
of the Capital Stock of any Restricted Subsidiary of the Company or (ii) all or
substantially all of the assets that constitute a division or line of business
of the Company or any of its Restricted Subsidiaries.

                  "Asset Sale" means any sale, transfer or other disposition
(including by way of merger, consolidation or sale-leaseback transactions) in
one transaction or a series of related transactions by the Company or any of
its Restricted Subsidiaries to any Person (other than the Company or any of its
Restricted Subsidiaries) of (i) all or any of the Capital Stock of any
Restricted Subsidiary (other than in respect of any director's qualifying
shares or investments by foreign nationals mandated by applicable law), (ii)
all or substantially all of the property and assets of an operating unit or
business of the Company or any of its Restricted Subsidiaries or (iii) any
other property and assets of the Company or any of its Restricted Subsidiaries
outside the ordinary course of business of the Company or such Restricted
Subsidiary and, in each case, that is not governed by Article Eight and which,
in the case of any of clause (i), (ii) or (iii) above, whether in one
transaction or a series of related transactions, (a) have a Fair Market Value
in excess of $1 million or (b) are for net proceeds in excess of $1 million;
provided that sales or other dispositions of inventory, receivables and other
current assets in the ordinary course of business shall not be included within
the meaning of "Asset Sale".

                  "Attributable Value" means, as to any particular lease under
which any Person is at the time liable other than a Capitalized Lease
Obligation, and at any date as of which the amount thereof is to be determined,
the total net amount of rent required to be paid by such person under such
lease during the remaining term thereof (whether or not such lease is
terminable at the option of the lessee prior to the end of such term),
including any period for which such lease has been, or may, at the option of
the lessor, be extended, discounted from the last date of such term to the date
of determination at a rate per annum equal to the discount rate which would be
applicable to a Capitalized Lease Obligation with like term in accordance with
GAAP. The net amount of rent required to be paid under any lease for any such
period shall be the aggregate amount of rent payable by the lessee with respect
to such period after excluding amounts required to be paid on account of
insurance, taxes, assessments, utility, operating and labor costs and similar
charges. "Attributable Value" means, as to a Capitalized Lease Obligation under
which any Person is at the time liable and at any date as of which the amount
thereof is to be determined, the capitalized amount thereof that would appear
on the face of a balance sheet of such Person in accordance with GAAP.

                  "Average Life" means, with respect to any Indebtedness, as at
any date of determination, the quotient obtained by dividing (i) the sum of the
products of (a) the number of

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<PAGE>   10

years from such date to the date or dates of each successive scheduled
principal payment (including, without limitation, any sinking fund
requirements) of such Indebtedness and (b) the amount of each such principal
payment by (ii) the sum of all such principal payments.

                  "Board of Directors" means the board of directors of the
Company or its equivalent, including managers of a limited liability company,
general partners of a partnership or trustees of a business trust, or any duly
authorized committee thereof.

                  "Board Resolution" means a copy of a resolution certified by
the secretary or any assistant secretary of the Company to have been duly
adopted by the Board of Directors and to be in full force and effect on the
date of such certification, and delivered to the Trustee.

                  "Business Day" means each Monday, Tuesday, Wednesday,
Thursday and Friday which is not a day on which banking institutions in The
City of New York or The City of Atlanta are authorized or obligated by law or
executive order to close.

                  "Capital Stock" means, with respect to any Person, any and
all shares, interests, participations, rights in or other equivalents (however
designated, whether voting or non-voting) in equity of such Person, whether now
outstanding or issued after the date of this Indenture, including, without
limitation, all Common Stock and Preferred Stock.

                  "Capitalized Lease Obligation" means any obligation under a
lease of (or other agreement conveying the right to use) any property (whether
real, personal or mixed) that is required to be classified and accounted for as
a capital lease obligation under GAAP, and, for the purpose of this Indenture,
the amount of such obligation at any date shall be the capitalized amount
thereof at such date, determined in accordance with GAAP.

                  "Change of Control" means such time as (i) a "person" or
"group" (within the meaning of Sections 13(d) and 14(d)(2) of the Exchange Act)
becomes the ultimate "beneficial owner" (as defined in Rule 13d-3 under the
Exchange Act) of more than 50% of the total voting power of the then
outstanding Voting Stock of the Company on a fully diluted basis; (ii)
individuals who at the beginning of any period of two consecutive calendar
years constituted the Board of Directors (together with any directors who are
members of the Board of Directors on the date hereof and any new directors
whose election by the Board of Directors or whose nomination for election by
the Company's stockholders was approved by a vote of at least two-thirds of the
members of the Board of Directors then still in office who either were members
of the Board of Directors at the beginning of such period or whose election or
nomination for election was previously so approved) cease for any reason to
constitute a majority of the members of such Board of Directors then in office;
(iii) the sale, lease, transfer, conveyance or other disposition (other than by
way of merger or consolidation), in one transaction or a series of related
transactions, of all or substantially all of the assets of the Company and its
Subsidiaries taken as a whole to any such "person" or "group" (other than to
the Company or a Restricted Subsidiary); (iv) the merger or consolidation of
the Company, with or into another corporation or the merger of another
corporation with or into the Company in one or a series of related

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<PAGE>   11

transactions with the effect that immediately after such transaction any such
"person" or "group" of persons or entities shall have become the beneficial
owner of securities of the surviving corporation of such merger or
consolidation representing a majority of the total voting power of the then
outstanding Voting Stock of the surviving corporation; or (v) the adoption of a
plan relating to the liquidation or dissolution of the Company.

                  "Change of Control Offer" has the meaning specified in
Section 1010.

                  "Change of Control Payment" has the meaning specified in
Section 1010.

                  "Change of Control Payment Date" has the meaning specified in
Section 1010.

                  "Commission" means the Securities and Exchange Commission, as
from time to time constituted, created under the Exchange Act, or, if at any
time after the execution of this Indenture such Commission is not existing and
performing the duties now assigned to it under the Trust Indenture Act, then
the body performing such duties at such time.

                  "Common Stock" means, with respect to any Person, any and all
shares, interests, participations, rights in or other equivalents (however
designated, whether voting or non-voting) of such Person's common stock,
whether now outstanding or issued after the date of this Indenture, including,
without limitation, all series and classes of such common stock.

                  "Company" means the Person named as the "Company" in the
first paragraph of this Indenture, until a successor Person shall have become
such pursuant to the applicable provisions of this Indenture, and thereafter
"Company" shall mean such successor Person and references to the "Company"
shall include FaciliCom after giving effect to the Merger.

                  "Company Request" or "Company Order" means a written request
or order signed in the name of the Company by its chairman, its president, any
Vice President, its treasurer or any assistant treasurer, and delivered to the
Trustee.

                  "Consolidated Cash Flow" means, for any period, the sum of
the amounts for such period of (i) Consolidated Net Income, (ii) Consolidated
Interest Expense, (iii) income taxes, to the extent such amount was deducted in
calculating Consolidated Net Income (other than income taxes (either positive
or negative) attributable to extraordinary and non-recurring gains or losses or
sales of assets), (iv) depreciation expense, to the extent such amount was
deducted in calculating Consolidated Net Income, (v) amortization expense, to
the extent such amount was deducted in calculating Consolidated Net Income, and
(vi) all other non-cash items reducing Consolidated Net Income (excluding any
non-cash charge to the extent that it represents an accrual of or reserve for
cash charges in any future period), less all non-cash items increasing
Consolidated Net Income, all as determined on a consolidated basis for the
Company and its Restricted Subsidiaries in conformity with GAAP.

                                       5
<PAGE>   12

                  "Consolidated Fixed Charges" means, for any period,
Consolidated Interest Expense plus dividends declared and payable on Preferred
Stock.

                  "Consolidated Interest Expense" means, for any period, the
aggregate amount of interest in respect of Indebtedness (including capitalized
interest, amortization of original issue discount on any Indebtedness and the
interest portion of any deferred payment obligation, calculated in accordance
with the effective interest method of accounting; all commissions, discounts
and other fees and charges owed with respect to letters of credit and bankers'
acceptance financing; the net costs associated with any Interest Rate
Agreements; and interest on Indebtedness that is Guaranteed or secured by the
Company or any of its Restricted Subsidiaries) and all but the principal
component of rentals in respect of Capitalized Lease Obligations paid, accrued
or scheduled to be paid or to be accrued by the Company and its Restricted
Subsidiaries during such period.

                  "Consolidated Net Income" means, with respect to any Person,
for any period, the consolidated net income (or loss) of such Person and its
Restricted Subsidiaries for such period as determined in accordance with GAAP,
adjusted, to the extent included in calculating such net income, by excluding,
without duplication, (i) all extraordinary gains or losses, (ii) net income (or
loss) of any Person combined in such Person or one of its Restricted
Subsidiaries on a "pooling of interests" basis attributable to any period prior
to the date of combination, (iii) gains or losses (on an after-tax basis) in
respect of any Asset Sales by such Person or one of its Restricted
Subsidiaries, (iv) the net income of any Restricted Subsidiary of such Person
to the extent that the declaration of dividends or similar distributions by
that Restricted Subsidiary of that income is not at the time permitted,
directly or indirectly, by operation of the terms of its charter or any
agreement, instrument, judgment, decree, order, statute, rule or governmental
regulations applicable to that Restricted Subsidiary or its stockholders, (v)
any gain or loss realized as a result of the cumulative effect of a change in
accounting principles, (vi) any amount paid or accrued as dividends on
Preferred Stock of the Company or Preferred Stock of any Restricted Subsidiary
owned by Persons other than the Company and any of its Restricted Subsidiaries
and (vii) the net income (or loss) of any Person (other than net income (or
loss) attributable to a Restricted Subsidiary) in which any Person (other than
the Company or any of its Restricted Subsidiaries) has a joint interest, except
to the extent of the amount of dividends or other distributions actually paid
to the Company or any of its Restricted Subsidiaries by such other Person
during such period.

                  "Consolidated Net Worth" means, at any date of determination,
stockholders' equity as set forth on the most recently available quarterly or
annual consolidated balance sheet of the Company and its Subsidiaries (which
shall be as of a date not more than 90 days prior to the date of such
computation), less any amounts attributable to Redeemable Stock or any equity
security convertible into or exchangeable for Indebtedness, the cost of
treasury stock and the principal amount of any promissory notes receivable from
the sale of the Capital Stock of the Company or any of its Subsidiaries, each
item to be determined in conformity with GAAP (excluding the effects of foreign
currency exchange adjustments under Financial Accounting Standards Board
Statement of Financial Accounting Standards No. 52).

                                       6
<PAGE>   13

                  "Corporate Trust Office" means the corporate trust operations
office of the Trustee, at which at any particular time its corporate trust
business shall be administered, which office at the date of execution of this
Indenture is located at First Union National Bank, Corporate Trust Department,
1525 West W.T. Harris Boulevard, 3C3 NC-1153, Charlotte, North Carolina 28262.

                  "corporation" includes corporations, associations, companies
and business trusts.

                  "covenant defeasance" has the meaning specified in Section
1303.

                  "Credit Facilities" means one or more debt facilities or
commercial paper facilities with banks or other institutional lenders providing
for revolving credit loans, term loans, receivables financing (including
through the sale of receivables to such lenders or to special purpose entities
formed to borrow from such lenders against such receivables) or letters of
credit, in each case, as amended, restated, modified, renewed, refunded,
replaced or refinanced in whole or in part from time to time.

                  "Cumulative Consolidated Cash Flow" means, for the period
beginning on the Exchange Date through and including the end of the last fiscal
quarter (taken as one accounting period) preceding the date of any proposed
Restricted Payment, Consolidated Cash Flow of the Company and its Restricted
Subsidiaries for such period determined on a consolidated basis in accordance
with GAAP.

                  "Cumulative Consolidated Fixed Charges" means the
Consolidated Fixed Charges of the Company and its Restricted Subsidiaries for
the period beginning on the Exchange Date through and including the end of the
last fiscal quarter (taken as one accounting period) preceding the date of any
proposed Restricted Payment, determined on a consolidated basis in accordance
with GAAP.

                  "Cumulative Consolidated Interest Expense" means, for the
period beginning on the Exchange Date through and including the end of the last
fiscal quarter (taken as one accounting period) preceding the date of any
proposed Restricted Payment, Consolidated Interest Expense of the Company and
its Restricted Subsidiaries for such period determined on a consolidated basis
in accordance with GAAP.

                  "Currency Agreement" means any foreign exchange contract,
currency swap agreement and any other arrangement and agreement designed to
provide protection against fluctuations in currency (or currency unit) values.

                  "Default" means any event that is, or after notice or passage
of time or both would be, an Event of Default.

                  "Defaulted Interest" has the meaning specified in Section 307.

                                       7
<PAGE>   14

                  "defeasance" has the meaning specified in Section 1302.

                  "Depositary" means The Depository Trust Company, its nominees
and successors or any replacement thereof.

                  "Eligible Accounts Receivable" means the accounts receivable
(net of any reserves and allowances for doubtful accounts in accordance with
GAAP) of any Person that are not more than 60 days past their due date and that
were entered into in the ordinary course of business on normal payment terms as
shown on the most recent consolidated balance sheet of such Person filed with
the Commission, all in accordance with GAAP.

                  "Eligible Institution" means a commercial banking institution
that has combined capital and surplus of not less than $500 million or its
equivalent in foreign currency, and has outstanding debt with a rating of "A-3"
or higher according to Moody's Investors Service, Inc., or "A-" or higher
according to Standard & Poor's Ratings Services (or such similar equivalent
rating by at least one "nationally recognized statistical rating organization"
(as defined in Rule 436 under the Securities Act)), at the time as of which any
investment or rollover therein is made.

                  "Event of Default" has the meaning specified in Section 501.

                  "Excess Proceeds" has the meaning specified in Section 1017.

                  "Excess Proceeds Offer" has the meaning specified in Section
1017.

                  "Excess Proceeds Payment" has the meaning specified in
Section 1017.

                  "Exchange Act" means the Securities Exchange Act of 1934, as
amended.

                  "Exchange Date" means the date of issuance of the Notes upon
the consummation of the registered exchange offer pursuant to which holders of
the FaciliCom Notes tendered such notes in exchange for the Notes issued by the
Company pursuant to this Indenture.

                  "Existing Indebtedness" means Indebtedness outstanding on the
date hereof.

                  "FaciliCom" has the meaning specified in the recitals to this
Indenture.

                  "FaciliCom Notes" has the meaning specified in the recitals
to this Indenture.

                  "FaciliCom Pledge Account" means an account established with
the FaciliCom Trustee in its name as trustee under the Original Indenture
pursuant to the terms of the FaciliCom Pledge Agreement.

                                       8
<PAGE>   15

                  "FaciliCom Pledge Agreement" means the Collateral Pledge and
Security Agreement, dated as of January 28, 1998, from FaciliCom to the
FaciliCom Trustee governing the FaciliCom Pledge Account and the disbursements
of funds therefrom.

                  "FaciliCom Pledged Securities" means the securities purchased
by FaciliCom with the portion of the net proceeds from the original offering of
the FaciliCom Notes consisting of U.S. Government Obligations and which were
deposited in the FaciliCom Pledge Account pursuant to the FaciliCom Pledge
Agreement.

                  "FaciliCom Trustee" means State Street Bank and Trust
Company, as trustee under the Original Indenture.

                  "Fair Market Value" means, with respect to any asset or
property, the sale value that would be obtained in an arm's length transaction
between an informed and willing seller under no compulsion to sell and an
informed and willing buyer under no compulsion to buy.

                  "GAAP" means generally accepted accounting principles in the
United States of America as in effect from time to time, including, without
limitation, those set forth in the opinions and pronouncements of the
Accounting Principles Board of the American Institute of Certified Public
Accountants and statements and pronouncements of the Financial Accounting
Standards Board or in such other statements by such other entity as approved by
a significant segment of the accounting profession of the United States.

                  "Global Notes" has the meaning specified in Section 201.

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

                  "Holder" means a Person in whose name a Note is registered in
the Register.

                  "Incur" or "Incurrence" means, with respect to any
Indebtedness, to incur, create, issue, assume, Guarantee or otherwise become
liable for or with respect to, or become responsible for, the payment of,
contingently or otherwise, such Indebtedness, including an Incurrence of
Indebtedness by reason of the acquisition of more than 50% of the Capital Stock
of

                                       9
<PAGE>   16

any Person; provided that neither the accrual of interest nor the accretion
of original issue discount shall be considered an Incurrence of Indebtedness.

                  "Indebtedness" means, with respect to any Person at any date
of determination (without duplication), (i) all indebtedness of such Person for
borrowed money, (ii) all obligations of such Person evidenced by bonds,
debentures, notes or other similar instruments, (iii) all obligations of such
Person in respect of letters of credit or other similar instruments (including
reimbursement obligations with respect thereto), (iv) all obligations of such
Person to pay the deferred and unpaid purchase price of property or services,
which purchase price is due more than six months after the date of placing such
property in service or taking delivery and title thereto or the completion of
such services, except Trade Payables, (v) all obligations of such Person as
lessee under Capitalized Lease Obligations and the Attributable Value under any
Sale-Leaseback Transaction of such Person, (vi) all Indebtedness of other
Persons secured by a Lien on any asset of such Person, whether or not such
Indebtedness is assumed by such Person; provided that the amount of such
Indebtedness shall be the lesser of (A) the Fair Market Value of such asset at
such date of determination or (B) the amount of such Indebtedness, (vii) all
Indebtedness of other Persons Guaranteed by such Person to the extent such
Indebtedness is Guaranteed by such Person, (viii) the maximum fixed redemption
or repurchase price of Redeemable Stock of such Person at the time of
determination and (ix) to the extent not otherwise included in this definition,
obligations under Currency Agreements and Interest Rate Agreements. The amount
of Indebtedness of any Person at any date shall be the outstanding balance at
such date of all unconditional obligations as described above and, with respect
to contingent obligations, the maximum liability upon the occurrence of the
contingency giving rise to the obligation; provided (x) that the amount
outstanding at any time of any Indebtedness issued with original issue discount
is the face amount of such Indebtedness less the remaining unamortized portion
of the original issue discount of such Indebtedness at such time as determined
in conformity with GAAP and (y) that Indebtedness shall not include any
liability for federal, state, local or other taxes.

                  "Indenture" means this instrument and the Pledge Agreement as
originally executed and as they may from time to time be supplemented or
amended by one or more indentures supplemental hereto and pledge agreements
supplemental thereto entered into pursuant to the applicable provisions hereof.

                  "Indirect Participant" means a Person who holds a beneficial
interest in a Global Note through a Participant.

                  "Interest Payment Date" means the Stated Maturity of an
installment of interest on the Notes.

                  "Interest Rate Agreements" means any interest rate swap
agreements, interest rate cap agreements, interest rate insurance, and other
arrangements and agreements designed to provide protection against fluctuations
in interest rates.

                                      10
<PAGE>   17

                  "Investment" in any Person means any direct or indirect
advance, loan or other extension of credit (including, without limitation, by
way of Guarantee or similar arrangement; but excluding advances to customers in
the ordinary course of business that are, in conformity with GAAP, recorded as
accounts receivable on the balance sheet of the Company or its Restricted
Subsidiaries) or capital contribution to (by means of any transfer of cash or
other property to others or any payment for property or services for the
account or use of others), or any purchase or acquisition of Capital Stock,
bonds, notes, debentures or other similar instruments issued by, such Person.
For purposes of the definition of "Unrestricted Subsidiary" and Sections 1012
and 1014, (i) "Investment" shall include (a) the Fair Market Value of the
assets (net of liabilities) of any Restricted Subsidiary of the Company at the
time that such Restricted Subsidiary of the Company is designated an
Unrestricted Subsidiary and shall exclude the Fair Market Value of the assets
(net of liabilities) of any Unrestricted Subsidiary at the time that such
Unrestricted Subsidiary is designated a Restricted Subsidiary of the Company
and (b) the Fair Market Value, in the case of a sale of Capital Stock in
accordance with Section 1014 such that a Person no longer constitutes a
Restricted Subsidiary, of the remaining assets (net of liabilities) of such
Person after such sale, and shall exclude the Fair Market Value of the assets
(net of liabilities) of any Unrestricted Subsidiary at the time that such
Unrestricted Subsidiary is designated a Restricted Subsidiary of the Company
and (ii) any property transferred to or from an Unrestricted Subsidiary shall
be valued at its Fair Market Value at the time of such transfer, in each case
as determined by the Board of Directors in good faith.

                  "Investment Grade Company" means a Person whose debt
securities are rated BBB- or higher by Standard & Poor's Ratings Service, Inc.
or Baa3 or higher by Moody's Investor Service, Inc. (or an equivalent rating by
another nationally recognized rating agency).

                  "IRU" means Indefeasible Right of Use, which is the right to
use a telecommunications system with most of the rights and duties of
ownership, but without the right to control or manage such facility and,
depending upon the particular agreement, without any right to salvage or duty
to dispose of such system's cable at the end of its useful life.

                  "Junior Preferred Stock" has the meaning specified in Section
1012.

                  "Lien" means any mortgage, charge, pledge, security interest,
encumbrance, lien (statutory or other), hypothecation, assignment for security,
claim, or preference or priority or other encumbrance upon or with respect to
any property of any kind (including, without limitation, any conditional sale
or other title retention agreement or lease in the nature thereof, any sale
with recourse against the seller or any Affiliate of the seller, or any
agreement to give any security interest).

                  "MAOU" means Minimum Assignable Ownership Units which is
capacity on a telecommunications system that has been acquired on an ownership
basis.

                  "Market Price" means the average closing price of the shares
of the Company's Common Stock on the principal trading market of such Common
Stock over the five consecutive

                                      11
<PAGE>   18

trading days up to and including the trading day prior to the last full trading
day before the closing of the Merger.

                  "Market Value" means the average of the closing price of the
applicable security on such security's principal trading market over the five
consecutive trading days up to and including the trading day prior to the last
full trading day before the initiation of any Offer to Purchase described in
clause (i) (B) of the second paragraph of Section 1017 or the time any
commitment to effect an Asset Sale is entered into as described in the first
paragraph of Section 1017.

                  "Marketable Securities" means: (i) U.S. Government
Obligations which have a remaining weighted average life to maturity of not
more than one year from the date of Investment therein; (ii) any time deposit
account, money market deposit and certificate of deposit maturing not more than
180 days after the date of acquisition issued by, or time deposit of, an
Eligible Institution; (iii) certificates of deposit, Eurodollar time deposits
and bankers' acceptances with maturity of 90 days or less and overnight bank
deposits of any financial institution that is organized under the laws of the
United States of America or any state hereof, and which bank or trust company
has capital, surplus and undivided profits aggregating in excess of $300
million (or, to the extent non-United States dollar denominated, the United
States Dollar Equivalent of such amount) and has outstanding debt which is
rated "A" (or such similar equivalent rating) or higher by at least one
"nationally recognized statistical rating organization" (as defined in Rule 436
under the Securities Act); (iv) commercial paper maturing not more than 180
days after the date of acquisition issued by a corporation (other than an
Affiliate of the Company) with a rating, at the time as of which any investment
therein is made, of "P-1" or higher according to Moody's Investors Service,
Inc., or "A-1" or higher according to Standard & Poor's Ratings Services (or
such similar equivalent rating by at least one "nationally recognized
statistical rating organization" (as defined in Rule 436 under the Securities
Act)); (v) auction rate preferred securities whose rates are reset based on
market level for a par security not more than 90 days after the date of
acquisition with a rating, at the time as of which any investment therein is
made, of "A-3" or higher according to Moody's Investors Service, Inc., or "A-"
or higher according to Standard & Poor's Ratings Services (or such similar
equivalent rating by at least one "nationally recognized statistical rating
organization" (as defined in Rule 436 under the Securities Act)) and issued by
a corporation that is not an Affiliate of the Company; (vi) any banker's
acceptance or money market deposit accounts issued or offered by an Eligible
Institution; (vii) repurchase obligations with a term of not more than seven
days for U.S. Government Obligations entered into with an Eligible Institution;
(viii) any obligations of the Trustee to the extent such obligations qualify as
such under clauses (i) through (vii) above and (ix) any fund investing
exclusively in investments of the types described in clauses (i) through (viii)
above.

                  "Maturity", when used with respect to any Notes, means the
date on which the principal of such Notes or an installment of principal
becomes due and payable as therein or herein provided, whether at the Stated
Maturity or by declaration of acceleration, notice of redemption or otherwise.

                                      12
<PAGE>   19

                  "Maturity Date" means January 15, 2008.

                  "Merger" means the merger of FaciliCom with and into the
Company pursuant to the Agreement and Plan of Merger dated August 17, 1999
between the Company and FaciliCom.

                  "Net Cash Proceeds" means, (a) with respect to any Asset
Sale, the proceeds of such Asset Sale in the form of cash or cash equivalents,
including payments in respect of deferred payment obligations (to the extent
corresponding to the principal, but not interest, component thereof) when
received in the form of cash or cash equivalents (except to the extent such
obligations are financed or sold with recourse to the Company or any Restricted
Subsidiary of the Company) and proceeds from the conversion of other property
received when converted to cash or cash equivalents, net of (i) brokerage
commissions and other fees and expenses (including fees and expenses of counsel
and investment bankers) related to such Asset Sale, (ii) provisions for all
taxes payable as a result of such Asset Sale without regard to the consolidated
results of operations of the Company and its Restricted Subsidiaries, taken as
a whole (after taking into account any available offsetting tax credits or
deductions and any tax sharing arrangements), (iii) payments made to repay
Indebtedness or any other obligation outstanding at the time of such Asset Sale
that either (A) is secured by a Lien on the property or assets sold or (B) is
required to be paid as a result of such sale and (iv) appropriate amounts to be
provided by the Company or any Restricted Subsidiary of the Company as a
reserve against any liabilities associated with such Asset Sale, including,
without limitation, pension and other post-employment benefit liabilities,
liabilities related to environmental matters and liabilities under any
indemnification obligations associated with such Asset Sale, all as determined
in conformity with GAAP, and (b) with respect to any issuance or sale of
Capital Stock, the proceeds of such issuance or sale in the form of cash or
cash equivalents, including payments in respect of deferred payment obligations
(to the extent corresponding to the principal, but not interest, component
thereof) when received in the form of cash or cash equivalents (except to the
extent such obligations are financed or sold with recourse to the Company or
any Restricted Subsidiary of the Company) and proceeds from the conversion of
other property received when converted to cash or cash equivalents, net of
attorneys' fees, accountants' fees, underwriters' or placement agents' fees,
discounts or commissions and brokerage, consultant and other fees incurred in
connection with such issuance or sale and net of taxes paid or payable as a
result thereof.

                  "Notes" means any of the Notes as defined in the first
recital of this Indenture and more particularly means any Notes authenticated
and delivered under this Indenture.

                  "Offer Payment Date" has the meaning specified in Section
1017.

                  "Offer to Purchase" has the meaning specified in Section
1017.

                  "Offer to Purchase Payment" has the meaning specified in
Section 1017.

                                      13
<PAGE>   20

                  "Officer's Certificate" means a certificate signed by the
chairman, the president, a Vice President, the treasurer, an assistant
treasurer, the secretary or an assistant secretary of the Company, and
delivered to the Trustee.

                  "Opinion of Counsel" means a written opinion of counsel, who
may be counsel for the Company, including an employee of the Company, and who
shall be acceptable to the Trustee.

                  "Original Indenture" means the Indenture, dated as of January
28, 1998, among FaciliCom and the FaciliCom Trustee, as supplemented by the
First Supplemental Indenture thereto, pursuant to which FaciliCom issued the
FaciliCom Notes.

                  "Original Issue Date" means January 28, 1998, the date
FaciliCom issued the FaciliCom Notes.

                  "Outstanding", when used with respect to Notes, means, as of
the date of determination, all Notes theretofore authenticated and delivered
under this Indenture, except:

                  (i)   Notes theretofore cancelled by the Trustee or delivered
         to the Trustee for cancellation;

                  (ii)  Notes, or portions thereof, for whose payment or
         redemption money in the necessary amount has been theretofore
         deposited with the Trustee or any Paying Agent (other than the
         Company) in trust or set aside and segregated in trust by the Company
         (if the Company shall act as its own Paying Agent) for the Holders of
         such Notes; provided that, if such Notes are to be redeemed, notice of
         such redemption has been duly given pursuant to this Indenture or
         provision therefor satisfactory to the Trustee has been made;

                  (iii) Notes, except to the extent provided in Sections 1302
         and 1303, with respect to which the Company has effected defeasance
         and/or covenant defeasance as provided in Article Thirteen; and

                  (iv)  Notes which have been paid pursuant to Section 306 or in
         exchange for or in lieu of which other Notes have been authenticated
         and delivered pursuant to this Indenture, other than any such Notes in
         respect of which there shall have been presented to the Trustee proof
         satisfactory to it that such Notes are held by a bona fide purchaser
         in whose hands the Notes are valid obligations of the Company;

provided, however, that in determining whether the Holders of the requisite
principal amount of Outstanding Notes have given any request, demand,
authorization, direction, consent, notice or waiver hereunder, and for the
purpose of making the calculations required by Section 313 of the TIA, Notes
owned by the Company or any other obligor upon the Notes or any Affiliate of
the Company or such other obligor shall be disregarded and deemed not to be
Outstanding, except that, in determining whether the Trustee shall be protected
in making such calculation or in

                                      14
<PAGE>   21

relying upon any such request, demand, authorization, direction, notice,
consent or waiver, only Notes which the Trustee actually knows to be so owned
shall be so disregarded. Notes so owned which have been pledged in good faith
may be regarded as Outstanding if the pledgee establishes to the satisfaction
of the Trustee the pledgee's right so to act with respect to such Notes and
that the pledgee is not the Company or any other obligor upon the Notes or any
Affiliate of the Company or such other obligor.

                  "Participant" means, with respect to the Depositary or its
nominee, an institution that has an account therewith.

                  "Paying Agent" means any Person (including the Company acting
as Paying Agent) authorized by the Company to pay the principal of (and
premium, if any) or interest on any Notes on behalf of the Company. The initial
Paying Agent shall be the Trustee.

                  "Payment Account" has the meaning specified in Section 402.

                  "Permitted Business" means any business involving voice, data
and other telecommunications services or equipment.

                  "Permitted Indebtedness" has the meaning specified in Section
1011(b).

                  "Permitted Investment" means (i) an Investment in a
Restricted Subsidiary or a Person which will, upon the making of such
Investment, become a Restricted Subsidiary or be merged or consolidated with or
into, or transfer or convey all or substantially all its assets to, the Company
or a Restricted Subsidiary; (ii) any Investment in Marketable Securities or
Pledged Securities; (iii) payroll, travel and similar advances to cover matters
that are expected at the time of such advances ultimately to be treated as
expenses in accordance with GAAP; (iv) loans or advances to officers and
employees made in the ordinary course of business that do not in the aggregate
exceed $1 million at any time outstanding; (v) stock, obligations or securities
received in satisfaction of judgments; (vi) Investments in any Person received
as consideration for Asset Sales to the extent permitted under Section 1017;
(vii) Investments in any Person at any one time outstanding (measured on the
date each such Investment was made without giving effect to subsequent changes
in value) in an aggregate amount not to exceed the greater of (A) $15 million
or (B) 5% of the Company's total consolidated assets; (viii) Investments in
deposits with respect to leases or utilities provided to third parties in the
ordinary course of business; (ix) Investments in Currency Agreements and
Interest Rate Agreements on commercially reasonable terms entered into by the
Company or any of its Restricted Subsidiaries in the ordinary course of
business in connection with the operation of the business of the Company or its
Restricted Subsidiaries; provided that such agreements do not increase the
Indebtedness of the obligor outstanding at any time other than as a result of
fluctuations in foreign currency exchange rates or interest rates or by reason
of fees, indemnities and compensation payable thereunder; (x) repurchases or
redemptions by the Company of Capital Stock from officers and other employees
of the Company or any of its Subsidiaries or their authorized representatives
upon the death, disability or termination of employment of such individuals, in
an aggregate amount not

                                      15
<PAGE>   22

exceeding $1 million in any calendar year and $3 million from the date of this
Indenture; and (xi) Investments in evidences of Indebtedness, securities or
other property received from another Person by the Company or any of its
Restricted Subsidiaries in connection with any bankruptcy proceeding or by
reason of a composition or readjustment of debt or a reorganization of such
Person or as a result of foreclosure, perfection or enforcement of any Lien in
exchange for evidences of Indebtedness, securities or other property of such
Person held by the Company or any of its Subsidiaries, or for other liabilities
or obligations of such Person to the Company or any of its Subsidiaries that
were created, in accordance with the terms of this Indenture.

                  "Permitted Liens" means (i) Liens for taxes, assessments,
governmental charges or claims that are being contested in good faith by
appropriate legal proceedings promptly instituted and diligently conducted and
for which a reserve or other appropriate provision, if any, as shall be
required in conformity with GAAP shall have been made; (ii) statutory Liens of
landlords and carriers, warehousemen, mechanics, suppliers, materialmen,
repairmen or other similar Liens arising in the ordinary course of business and
with respect to amounts not yet delinquent or being contested in good faith by
appropriate legal proceedings promptly instituted and diligently conducted and
for which a reserve or other appropriate provision, if any, as shall be
required in conformity with GAAP shall have been made; (iii) Liens incurred or
deposits made in the ordinary course of business in connection with workers'
compensation, unemployment insurance and other types of social security; (iv)
Liens incurred or deposits made to secure the performance of tenders, bids,
leases, statutory or regulatory obligations, bankers' acceptances, surety and
appeal bonds, government contracts, performance and return-of-money bonds and
other obligations of a similar nature incurred in the ordinary course of
business (exclusive of obligations for the payment of borrowed money); (v)
easements, rights-of-way, municipal and zoning ordinances and similar charges,
encumbrances, title defects or other irregularities that do not materially
interfere with the ordinary course of business of the Company or any of its
Restricted Subsidiaries; (vi) Liens (including extensions and renewals thereof)
upon real or personal property purchased or leased after the Original Issue
Date; provided that (a) such Lien is created solely for the purpose of securing
Indebtedness Incurred in compliance with Section 1011 (1) to finance the cost
(including the cost of design, development, construction, acquisition,
installation or integration) of the item of property or assets subject thereto
and such Lien is created prior to, at the time of or within six months after
the later of the acquisition, the completion of construction or the
commencement of full operation of such property or (2) to refinance any
Indebtedness previously so secured, (b) the principal amount of the
Indebtedness secured by such Lien does not exceed 100% of such cost and (c) any
such Lien shall not extend to or cover any property or assets other than such
item of property or assets and any improvements on such item; (vii) leases or
subleases granted to others that do not materially interfere with the ordinary
course of business of the Company and its Restricted Subsidiaries, taken as a
whole; (viii) Liens encumbering property or assets under construction arising
from progress or partial payments by a customer of the Company or its
Restricted Subsidiaries relating to such property or assets; (ix) any interest
or title of a lessor in the property subject to any Capitalized Lease
Obligation or operating lease; (x) Liens arising from filing Uniform Commercial
Code financing statements regarding leases; (xi) Liens on property of, or on
shares of stock or Indebtedness of, any corporation existing at the time such
corporation becomes, or

                                      16
<PAGE>   23

becomes a part of, any Restricted Subsidiary; provided that such Liens do not
extend to or cover any property or assets of the Company or any Restricted
Subsidiary other than the property or assets acquired and were not created in
contemplation of such transaction; (xii) Liens in favor of the Company or any
Restricted Subsidiary; (xiii) Liens arising from the rendering of a final
judgment or order against the Company or any Restricted Subsidiary of the
Company that does not give rise to an Event of Default; (xiv) Liens securing
reimbursement obligations with respect to letters of credit that encumber
documents and other property relating to such letters of credit and the
products and proceeds thereof; (xv) Liens in favor of customs and revenue
authorities arising as a matter of law to secure payment of customs duties in
connection with the importation of goods; (xvi) Liens encumbering customary
initial deposits and margin deposits and other Liens that are either within the
general parameters customary in the industry or incurred in the ordinary course
of business, in each case, securing Indebtedness under Interest Rate Agreements
and Currency Agreements; (xvii) Liens arising out of conditional sale, title
retention, consignment or similar arrangements for the sale of goods entered
into by the Company or any of its Restricted Subsidiaries in the ordinary
course of business in accordance with the past practices of the Company and its
Restricted Subsidiaries prior to the Exchange Date; (xviii) Liens existing on
the Original Issue Date or securing the Notes or the FaciliCom Notes or any
Guarantee of the Notes or the FaciliCom Notes; (xix) Liens granted after the
Exchange Date on any assets or Capital Stock of the Company or its Restricted
Subsidiaries created in favor of the Holders; (xx) Liens securing Indebtedness
which is incurred to refinance secured Indebtedness which is permitted to be
Incurred under clause (viii) of paragraph (b) of Section 1011; provided that
such Liens do not extend to or cover any property or assets of the Company or
any Restricted Subsidiary other than the property or assets securing the
Indebtedness being refinanced; and (xxi) Liens securing Indebtedness under
Credit Facilities incurred in compliance with clause (iii), or securing
Indebtedness to finance the cost of Telecommunication Assets under clause (iv)
of paragraph (b) of Section 1011.

                  "Person" means any individual, corporation, limited liability
company, partnership, joint venture, association, joint-stock company, trust,
unincorporated organization or government or any agency or political
subdivision thereof.

                  "Pledge Account" means an account established with the
Trustee in its name as Trustee hereunder pursuant to the terms of the Pledge
Agreement for the deposit of the Pledged Securities.

                  "Pledge Agreement" means the Collateral Pledge and Security
Agreement, dated as of the date of this Indenture, from the Company to the
Trustee, governing the Pledge Account and the disbursement of funds therefrom.

                  "Pledged Securities" means the FaciliCom Pledged Securities
or portion thereof which are to be transferred from the FaciliCom Pledge
Account to, and deposited in, the Pledge Account pursuant to the Pledge
Agreement. The Pledged Securities may be held in book-entry form through the
Trustee acting as securities intermediary.

                                      17
<PAGE>   24

                  "Predecessor Note" of any particular Note means every
previous Note evidencing all or a portion of the same debt as that evidenced by
such particular Note; and, for the purposes of this definition, any Note
authenticated and delivered under Section 306 in exchange for a mutilated
security or in lieu of a lost, destroyed or stolen Note shall be deemed to
evidence the same debt as the mutilated, lost, destroyed or stolen Note.

                  "Preferred Stock" means, with respect to any Person, any and
all shares, interests, participations, rights or other equivalents (however
designated, whether voting or non-voting) of such Person's preferred or
preference stock, whether now outstanding or issued after the date of the
Indenture, including, without limitation, all series and classes of such
preferred or preference stock.

                  "Pro Forma Consolidated Cash Flow" means, for any period, the
Consolidated Cash Flow of the Company for such period calculated on a pro forma
basis to give effect to any Asset Disposition or Asset Acquisition not in the
ordinary course of business (including acquisitions of other Persons by merger,
consolidation or purchase of Capital Stock) during such period as if such Asset
Disposition or Asset Acquisition had taken place on the first day of such
period.

                  "Public Equity Offering" means an underwritten primary public
offering of Common Stock of the Company pursuant to an effective registration
statement under the Securities Act.

                  "Purchase Money Indebtedness" means the principal of,
premium, if any, and interest on, and any other payment obligations in respect
of, any Indebtedness of the Company incurred to finance the purchase of plant,
property, equipment, machinery or similar assets (including, without
limitation, indebtedness for money borrowed for such purpose and indebtedness
in respect of installment payment arrangements).

                  "Purchase Price" has the meaning set forth in Section 1010.

                  "Redeemable Stock" means any class or series of Capital Stock
of any Person that by its terms (or by the terms of any security into which it
is exchangeable) or otherwise is (i) required to be redeemed on or prior to the
date that is 123 days after the date of the Stated Maturity of the Notes, (ii)
redeemable at the option of the holder of such class or series of Capital Stock
at any time on or prior to the date that is 123 days after the date of the
Stated Maturity of the Notes or (iii) convertible into or exchangeable for
Capital Stock referred to in clause (i) or (ii) above or Indebtedness having a
scheduled maturity on or prior to the date that is 123 days after the date of
the Stated Maturity of the Notes; provided that any Capital Stock that would
not constitute Redeemable Stock but for provisions thereof giving holders
thereof the right to require such Person to repurchase or redeem such Capital
Stock upon the occurrence of an "asset sale" or "change of control" occurring
on or prior to the date that is 123 days after the date of the Stated Maturity
of the Notes shall not constitute Redeemable Stock if the "asset sale" or
"change of control" provisions applicable to such Capital Stock are no more
favorable to the holders of such

                                      18
<PAGE>   25

Capital Stock than the provisions contained in Sections 1010 and 1017 and such
Capital Stock specifically provides that such Person will not repurchase or
redeem any such stock pursuant to such provisions, on or prior to the date that
is 123 days after the date of the Company's repurchase of such Notes as are
required to be repurchased pursuant to Sections 1010 and 1017.

                  "Redemption Date", when used with respect to any Note to be
redeemed, in whole or in part, means the date fixed for such redemption by or
pursuant to this Indenture.

                  "Redemption Price", when used with respect to any Note to be
redeemed, means the price at which it is to be redeemed pursuant to this
Indenture.

                  "Register" and "Registrar" have the respective meanings
specified in Section 305.

                  "Regular Record Date" for the interest payable on any
Interest Payment Date means the January 1 or July 1 (whether or not a Business
Day), as the case may be, next preceding such Interest Payment Date.

                  "Responsible Officer", when used with respect to the Trustee,
means any officer of its corporate trust department or similar group having
direct responsibility for the administration of this Indenture and also means,
with respect to a particular corporate trust matter, any other officer to whom
such matter is referred because of his knowledge of and familiarity with the
particular subject.

                  "Restricted Payments" has the meaning specified in Section
1012.

                  "Restricted Subsidiary" means any Subsidiary of the Company
other than an Unrestricted Subsidiary.

                  "Sale-Leaseback Transaction" of any person means an
arrangement with any lender or investor or to which such lender or investor is
a party providing for the leasing by such person of any property or asset of
such person which has been or is being sold or transferred by such person after
the acquisition thereof or the completion of construction or commencement of
operation thereof to such lender or investor or to any person to whom funds
have been or are to be advanced by such lender or investor on the security of
such property or asset. The stated maturity of such arrangement shall be the
date of the last payment of rent or any other amount due under such arrangement
prior to the first date on which such arrangements may be terminated by the
lessee without payment of a penalty.

                  "Securities Act" means the Securities Act of 1933, as amended.

                  "Senior Preferred Stock" has the meaning specified in Section
1012.

                                      19
<PAGE>   26

                  "Significant Subsidiary" means a Restricted Subsidiary that
is a "significant subsidiary" as defined in Rule 1-02(w) of Regulation S-X
under the Securities Act and the Exchange Act.

                  "Special Record Date" for the payment of any Defaulted
Interest means a date fixed by the Trustee pursuant to Section 307.

                  "Stated Maturity" means (i) with respect to any debt
security, the date specified in such debt security as the fixed date on which
the final installment of principal of such debt security is due and payable and
(ii) with respect to any scheduled installment of principal of or interest on
any debt security, the date specified in such debt security as the fixed date
on which such installment is due and payable.

                  "Subsidiary" means, with respect to any Person, any
corporation, association or other business entity including, without
limitation, partnerships and limited liability companies, of which more than
50% of the outstanding Voting Stock is owned, directly or indirectly, by such
Person and one or more other Subsidiaries of such Person.

                  "Telecommunications Assets" means, with respect to any
Person, equipment used in the telecommunications business or ownership rights
with respect to IRUs, MAOUs or minimum investment units (or similar ownership
interests) in fiber optic cable and international or domestic
telecommunications switches or other transmission facilities (or Common Stock
of a Person that becomes a Restricted Subsidiary, the assets of which consist
primarily of any such Telecommunications Assets), in each case purchased or
acquired through Indebtedness, provided that such Indebtedness does not exceed
the Fair Market Value of such assets, by the Company or a Restricted Subsidiary
after the Original Issue Date.

                  "Tested Transaction" has the meaning stated in the definition
of "United States Dollar Equivalent".

                  "The 1818 Fund" has the meaning specified in Section 1012.

                  "TMG" means Telecommunications Management Group, Inc.

                  "Total Equity Market Capitalization" of any Person means, as
of any date of determination, the product of (i) the aggregate number of
outstanding shares of Common Stock of such Person on such date on a
fully-diluted basis and (ii) the average closing price of such Common Stock
over the five consecutive trading days immediately preceding such date. If no
closing price exists with respect to shares of any such class, the value of
such shares shall be determined by the Board of Directors in good faith and
evidenced by a resolution of the Board of Directors filed with the Trustee.

                  "Trade Payables" means any accounts payable or any other
indebtedness or monetary obligation to trade creditors created, assumed or
Guaranteed by the Company or any of

                                      20
<PAGE>   27

its Restricted Subsidiaries arising in the ordinary course of business in
connection with the acquisition of goods and services.

                  "Transaction Date" means, with respect to the Incurrence of
any Indebtedness by the Company or any of its Restricted Subsidiaries, the date
such Indebtedness is to be Incurred and, with respect to any Restricted
Payment, the date such Restricted Payment is to be made.

                  "Trust Indenture Act" or "TIA" means the Trust Indenture Act
of 1939 as in force at the date as of which this Indenture was executed, except
as provided in Section 905.

                  "Trustee" means the Person named as the "Trustee" in the
first paragraph of this Indenture until a successor Trustee shall have become
such pursuant to the applicable provisions of this Indenture, and thereafter
"Trustee" shall mean such successor Trustee.

                  "Uniform Commercial Code" means the Uniform Commercial Code
as in effect in New York State.

                  "United States Dollar Equivalent" means, with respect to any
monetary amount in a currency other than the United States dollar, at any time
for the determination thereof, the amount of United States dollars obtained by
converting such foreign currency involved in such computation into United
States dollars at the spot rate for the purchase of United States dollars with
the applicable foreign currency as quoted by Reuters at approximately 11:00
a.m. (New York City time) on the date not more than two business days prior to
such determination. For purposes of determining whether any Indebtedness can be
incurred (including Permitted Indebtedness), any Investment can be made and any
transaction described in Section 1015 can be undertaken (a "Tested
Transaction"), the United States Dollar Equivalent of such Indebtedness,
Investment or transaction described in Section 1015 will be determined on the
date Incurred, made or undertaken and no subsequent change in the United States
Dollar Equivalent shall cause such Tested Transaction to have been Incurred,
made or undertaken in violation of this Indenture.

                  "Unrestricted Subsidiary" means (i) any Subsidiary of the
Company that at the time of determination shall be designated an Unrestricted
Subsidiary by the Board of Directors in the manner provided below and (ii) any
Subsidiary of an Unrestricted Subsidiary. The Board of Directors may designate
any Restricted Subsidiary of the Company (including any newly acquired or newly
formed Subsidiary of the Company) to be an Unrestricted Subsidiary unless such
Subsidiary owns any Capital Stock of, or owns or holds any Lien on any property
of, the Company or any Restricted Subsidiary; provided (A) that the Subsidiary
to be so designated has total assets of $1,000 or less or (B) if such
Subsidiary has assets greater than $1,000, that such designation would be
permitted under Section 1012, and such Subsidiary is not liable, directly or
indirectly, with respect to any Indebtedness other than Unrestricted Subsidiary
Indebtedness. The Board of Directors may designate any Unrestricted Subsidiary
to be a Restricted Subsidiary of the Company; provided that immediately after
giving effect to such designation (x) the Company could Incur $1.00 of
additional Indebtedness under the first paragraph of Section 1011 and (y) no
Default or Event of Default shall have occurred and be continuing. Any such
designation by the

                                      21
<PAGE>   28

Board of Directors shall be evidenced to the Trustee by promptly filing with
the Trustee a copy of the Board Resolution giving effect to such designation
and an Officers' Certificate certifying that such designation complied with the
foregoing provisions.

                  "Unrestricted Subsidiary Indebtedness" means Indebtedness of
any Unrestricted Subsidiary (i) as to which neither the Company nor any
Restricted Subsidiary is directly or indirectly liable (by virtue of the
Company or any such Restricted Subsidiary being the primary obligor on,
guarantor of, or otherwise liable in any respect to, such Indebtedness), and
(ii) which, upon the occurrence of a default with respect thereto, does not
result in, or permit any holder of any Indebtedness of the Company or any
Restricted Subsidiary to declare, a default on such Indebtedness of the Company
or any Restricted Subsidiary or cause the payment thereof to be accelerated or
payable prior to its Stated Maturity.

                  "U.S. Government Obligations" has the meaning specified in
Section 1304.

                  "Vice President", when used with respect to the Company or
the Trustee, means any vice president, whether or not designated by a number or
a word or words added before or after the title "vice president".

                  "Voting Stock" means with respect to any Person, Capital
Stock of any class or kind ordinarily having the power to vote for the election
of directors, managers or other voting members of the governing body of such
Person.

                  "Wholly Owned", with respect to any Subsidiary, means a
Subsidiary of the Company if all of the outstanding Capital Stock in such
Subsidiary (other than any director's qualifying shares or Investments by
foreign nationals mandated by applicable law) is owned by the Company or one or
more Wholly Owned Subsidiaries of the Company.

                  "World Access Charitable Trust" means that certain World
Access Charitable Trust dated August 19, 1999, by and between World Access
Investment Corp., a Delaware corporation, and Clay C. Long, Esq., as trustee,
in favor of World Access Foundation, Inc., a Georgia nonprofit corporation.

SECTION 102.  Compliance Certificates and Opinions.

                  Upon any application or request by the Company to the Trustee
to take any action under any provision of this Indenture, the Company shall
furnish to the Trustee an Officer's Certificate stating that all conditions
precedent, if any, provided for in this Indenture (including any covenant
compliance with which constitutes a condition precedent) relating to the
proposed action have been complied with and an Opinion of Counsel stating that
in the opinion of such counsel all such conditions precedent, if any, have been
complied with, except that in the case of any such application or request as to
which the furnishing of such documents is specifically required by any
provision of this Indenture relating to such particular application or request,
no additional certificate or opinion need be furnished.

                                      22
<PAGE>   29
                  Every certificate or opinion with respect to compliance with a
condition or covenant provided for in this Indenture (other than pursuant to
Section 1008(a)) shall include:

                  (1)      a statement that each individual signing such
         certificate or opinion has read such covenant or condition and the
         definitions herein relating thereto;

                  (2)      a brief statement as to the nature and scope of the
         examination or investigation upon which the statements or opinions
         contained in such certificate or opinion are based;

                  (3)      a statement that, in the opinion of each such
         individual, he or she has made such examination or investigation as is
         necessary to enable him or her to express an informed opinion as to
         whether or not such covenant or condition has been complied with; and

                  (4)      a statement as to whether, in the opinion of each
         such individual, such condition or covenant has been complied with.

SECTION 103.  Form of Documents Delivered to Trustee.

                  In any case where several matters are required to be certified
by, or covered by an opinion of, any specified Person, it is not necessary that
all such matters be certified by, or covered by the opinion of, only one such
Person, or that they be so certified or covered by only one document, but one
such Person may certify or give an opinion with respect to some matters and one
or more other such Persons as to other matters, and any such Person may certify
or give an opinion as to such matters in one or several documents.

                  Any certificate or opinion of an officer of the Company may be
based, insofar as it relates to legal matters, upon a certificate or opinion of,
or representations by, counsel, unless such officer knows, or in the exercise of
reasonable care should know, that the certificate or opinion or representations
with respect to the matters upon which his certificate or opinion is based are
erroneous. Any such certificate or Opinion of Counsel may be based, insofar as
it relates to factual matters, upon a certificate or opinion of, or
representations by, an officer or officers of the Company stating that the
information with respect to such factual matters is in the possession of the
Company, unless such counsel knows, or in the exercise of reasonable care should
know, that the certificate or opinion or representations with respect to such
matters are erroneous.

                  Where any Person is required to make, give or execute two or
more applications, requests, consents, certificates, statements, opinions or
other instruments under this Indenture, they may, but need not, be consolidated
and form one instrument.

SECTION 104.  Acts of Holders.

                                       23
<PAGE>   30

                  (a)      Any request, demand, authorization, direction,
notice, consent, waiver or other action provided by this Indenture to be given
or taken by Holders may be embodied in and evidenced by one or more instruments
of substantially similar tenor signed by such Holders in person or by agents
duly appointed in writing; and, except as herein otherwise expressly provided,
such action shall become effective when such instrument or instruments are
delivered to the Trustee and, where it is hereby expressly required, to the
Company. Such instrument or instruments (and the action embodied therein and
evidenced thereby) are herein sometimes referred to as the "Act" of the Holders
signing such instrument or instruments. Proof of execution of any such
instrument or of a writing appointing any such agent shall be sufficient for any
purpose of this Indenture and conclusive in favor of the Trustee and the
Company, if made in the manner provided in this Section.

                  (b)      The fact and date of the execution by any Person of
any such instrument or writing may be proved by the affidavit of a witness of
such execution or by a certificate of a notary public or other officer
authorized by law to take acknowledgments of deeds, certifying that the
individual signing such instrument or writing acknowledged to him the execution
thereof. Where such execution is by a signer acting in a capacity other than his
individual capacity, such certificate or affidavit shall also constitute
sufficient proof of authority. The fact and date of the execution of any such
instrument or writing, or the authority of the Person executing the same, may
also be proved in any other manner that the Trustee deems sufficient.

                  (c)      The principal amount and serial numbers of Notes held
by any Person, and the date of holding the same, shall be proved by the
Register.

                  (d)      If the Company shall solicit from the Holders of
Notes any request, demand, authorization, direction, notice, consent, waiver or
other Act, the Company may, at its option, by or pursuant to a Board Resolution,
fix in advance a record date for the determination of Holders entitled to give
such request, demand, authorization, direction, notice, consent, waiver or other
Act, but the Company shall have no obligation to do so. Notwithstanding TIA
Section 316(c), such record date shall be the record date specified in or
pursuant to such Board Resolution, which shall be a date not earlier than the
date 30 days prior to the first solicitation of Holders generally in connection
therewith and not later than the date such solicitation is completed. If such a
record date is fixed, such request, demand, authorization, direction, notice,
consent, waiver or other Act may be given before or after such record date, but
only the Holders of record at the close of business on such record date shall be
deemed to be Holders for the purposes of determining whether Holders of the
requisite proportion of Outstanding Notes have authorized or agreed or consented
to such request, demand, authorization, direction, notice, consent, waiver or
other Act, and for that purpose the Outstanding Notes shall be computed as of
such record date; provided that no such authorization, agreement or consent by
the Holders on such record date shall be deemed effective unless it shall become
effective pursuant to the provisions of this Indenture not later than eleven
months after the record date.

                  (e)      Any request, demand, authorization, direction,
notice, consent, waiver or other Act of the Holder of any Note shall bind every
future Holder of the same Note and the

                                       24
<PAGE>   31

Holder of every Note issued upon the registration of transfer thereof or in
exchange therefor or in lieu thereof in respect of anything done, omitted or
suffered to be done by the Trustee or the Company in reliance thereon, whether
or not notation of such action is made upon such Note.

SECTION 105.  Notices, Etc., to Trustee, Company.

                  Any request, demand, authorization, direction, notice,
consent, waiver or Act of Holders or other document provided or permitted by
this Indenture to be made upon, given or furnished to, or filed with,

                  (1)      the Trustee by any Holder or by the Company shall be
         sufficient for every purpose hereunder if made, given, furnished or
         filed in writing to or with the Trustee at its Corporate Trust Office,
         or

                  (2)      the Company by the Trustee or by any Holder shall be
         sufficient for every purpose hereunder (unless otherwise herein
         expressly provided) if in writing and mailed, first-class postage
         prepaid, to the Company addressed to it at the address of its principal
         office specified in the first paragraph of this Indenture, or at any
         other address previously furnished in writing to the Trustee by the
         Company.

SECTION 106.  Notice to Holders; Waiver.

                  Where this Indenture provides for notice of any event to
Holders by the Company or the Trustee, such notice shall be sufficiently given
(unless otherwise herein expressly provided) if in writing and mailed,
first-class postage prepaid, to each Holder affected by such event, at his
address as it appears in the Register, not later than the latest date, and not
earlier than the earliest date, prescribed for the giving of such notice. In any
case where notice to Holders is given by mail, neither the failure to mail such
notice, nor any defect in any notice so mailed, to any particular Holder shall
affect the sufficiency of such notice with respect to other Holders. Any notice
mailed to a Holder in the manner herein prescribed shall be conclusively deemed
to have been received by such Holder, whether or not such Holder actually
receives such notice. Where this Indenture provides for notice in any manner,
such notice may be waived in writing by the Person entitled to receive such
notice, either before or after the event, and such waiver shall be the
equivalent of such notice. Waivers of notice by Holders shall be filed with the
Trustee, but such filing shall not be a condition precedent to the validity of
any action taken in reliance upon such waiver.

                  In case by reason of the suspension of or irregularities in
regular mail service or by reason of any other cause, it shall be impracticable
to mail notice of any event to Holders when such notice is required to be given
pursuant to any provision of this Indenture, then any manner of giving such
notice as shall be satisfactory to the Trustee shall be deemed to be a
sufficient giving of such notice for every purpose hereunder.

SECTION 107.  Effect of Headings and Table of Contents.

                                       25
<PAGE>   32

                  The Article and Section headings herein and the Table of
Contents are for convenience only and shall not affect the construction hereof.

SECTION 108.  Successors and Assigns.

                  All covenants and "agreements" in this Indenture by the
Company shall bind its successors and assigns, whether so expressed or not.

SECTION 109.  Separability Clause.

                  In case any provision in this Indenture or in the Notes shall
be invalid, illegal or unenforceable, the validity, legality and enforceability
of the remaining provisions shall not in any way be affected or impaired
thereby.

SECTION 110.  Benefits of Indenture.

                  Nothing in this Indenture or in the Notes, express or implied,
shall give to any Person, other than the parties hereto, any Paying Agent, any
Notes Registrar and their successors hereunder, and the Holders, any benefit or
any legal or equitable right, remedy or claim under this Indenture.

SECTION 111.  Governing Law.

                  This Indenture and the Notes shall be governed by and
construed in accordance with the laws of the State of New York. This Indenture
is subject to the provisions of the Trust Indenture Act that are required to be
part of this Indenture and shall, to the extent applicable, be governed by such
provisions. Each of the parties hereto submits to the jurisdiction of the U.S.
federal and any New York state court located in the Borough of Manhattan, The
City and State of New York with respect to any actions brought against it as
defendant in any suit, action or proceeding arising out of or relative to this
Indenture or the Notes and waives any rights to which it may be entitled on
account of place of residence or domicile.

SECTION 112.  Legal Holidays.

                  In any case where any Interest Payment Date, Redemption Date,
sinking fund payment date or Stated Maturity or Maturity of any Note shall not
be a Business Day, then (notwithstanding any other provision of this Indenture
or of the Notes) payment of principal (or premium, if any) or interest need not
be made on such date, but may be made on the next succeeding Business Day with
the same force and effect as if made on such Interest Payment Date, Redemption
Date or sinking fund payment date, or at the Stated Maturity or Maturity;
provided that no interest shall accrue for the period from and after such
Interest Payment Date, Redemption Date, sinking fund payment date, Stated
Maturity or Maturity, as the case may be.

                                       26
<PAGE>   33

                                   ARTICLE TWO

                                   NOTE FORMS

SECTION 201.  Forms Generally.

                  The Notes and the Trustee's certificate of authentication
shall be substantially in the form annexed hereto as Exhibit A with such
appropriate insertions, omissions, substitutions and other variations as are
required or permitted by this Indenture. The Notes may have notations, legends
or endorsements required by law, stock exchange agreements to which the Company
is subject or usage. The Company shall approve the form of the Notes and any
notation, legend or endorsement on the Notes.

                  The terms and provisions contained in the form of the Notes
annexed hereto as Exhibit A shall constitute, and are hereby expressly made, a
part of this Indenture. To the extent applicable, the Company and the Trustee,
by their execution and delivery of this Indenture, expressly agree to such terms
and provisions and to be bound thereby.

                  Notes shall be issued initially in the form of one or more
permanent global Notes in registered form, substantially in the form set forth
in Exhibit A (the "Global Notes"), registered in the name of the Depositary or
the nominee of the Depositary, deposited with the Trustee, as custodian for the
Depositary, duly executed by the Company and authenticated by the Trustee as
hereinafter provided. Ownership of beneficial interests in Global Notes will be
limited to Participants or Indirect Participants.

                  The definitive Notes shall be typed, printed, lithographed or
engraved or produced by any combination of these methods or may be produced in
any other manner permitted by the rules of any securities exchange on which the
Notes may be listed, all as determined by the officers executing such Notes, as
evidenced by their execution of such Notes.

SECTION 202.  Restrictive Legends.

                  Each Global Note shall bear the following legend on the face
thereof:

         UNLESS THIS CERTIFICATE IS PRESENTED, BY AN AUTHORIZED REPRESENTATIVE
         OF THE DEPOSITORY TRUST COMPANY, TO THE COMPANY OR ITS AGENT FOR
         REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE
         ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR TO SUCH OTHER ENTITY
         AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
         COMPANY OR SUCH OTHER REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY OR
         SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE
         DEPOSITORY TRUST COMPANY (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO.
         OR TO SUCH OTHER ENTITY AS

                                       27
<PAGE>   34

         IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
         COMPANY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
         OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER
         HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

         TRANSFERS OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS IN WHOLE,
         BUT NOT IN PART, TO NOMINEES OF CEDE & CO. OR TO A SUCCESSOR THEREOF OR
         SUCH SUCCESSOR'S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL NOTE
         SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS
         SET FORTH IN SECTION 311 OF THE INDENTURE.

                                  ARTICLE THREE

                                    THE NOTES

SECTION 301.  Title and Terms.

                  The aggregate principal amount of Notes which may be
authenticated and delivered under this Indenture is limited to $300,000,000,
except for Notes authenticated and delivered upon registration of transfer of,
or in exchange for, or in lieu of, other Notes pursuant to Section 303, 304,
305, 306, 906, 1010, 1017 or 1108.

                  The Notes shall be known and designated as the "13.25% Senior
Notes due 2008" of the Company. The Stated Maturity of the principal of the
Notes shall be January 15, 2008 and they shall bear interest at the rate of
13.25% per annum, payable on January 15 and July 15 of each year, commencing on
January 15, 2000 (or July 15, 2000, if the Exchange Date does not occur prior to
January 1, 2000), until the principal thereof is paid or duly provided for.
Interest on the Notes will accrue from the most recent Interest Payment Date for
which interest has been paid or, if no interest has been paid, from the Exchange
Date.

                  The principal of (and premium, if any) and interest on the
Notes shall be payable at the office or agency of the Company maintained for
such purpose pursuant to Section 1002, or, at the option of the Company,
interest may be paid by check mailed to addresses of the Persons entitled
thereto as such addresses shall appear on the Register; provided that all
payments with respect to the Global Notes the Holders of which have given wire
transfer instructions to the Company will be required to be made by wire
transfer of immediately available funds to the accounts specified by the Holders
thereof.

                  The Notes shall be redeemable as provided in Article Eleven.

                                       28
<PAGE>   35

SECTION 302.  Denominations.

                  The Notes shall be issuable only in registered form without
coupons and only in denominations of $1,000 and any integral multiple thereof.

SECTION 303.  Execution, Authentication, Delivery and Dating.

                  The Notes shall be executed on behalf of the Company by its
chairman, its president, chief financial officer or any Vice President. The
signature of any of these officers on the Notes may be manual or facsimile
signatures of the present or any future such authorized officer and may be
imprinted or otherwise reproduced on the Notes.

                  Notes bearing the manual or facsimile signatures of
individuals who were at any time the proper officers of the Company shall bind
the Company, notwithstanding that such individuals or any of them have ceased to
hold such offices prior to the authentication and delivery of such Notes or did
not hold such offices at the date of such Notes.

                  At any time and from time to time after the execution and
delivery of this Indenture, the Company may deliver Notes executed by the
Company to the Trustee for authentication, together with a Company Order for the
authentication and delivery of such Notes directing the Trustee to authenticate
the Notes and certifying that all conditions precedent to the issuance of Notes
contained herein have been fully complied with, and the Trustee in accordance
with such Company Order shall authenticate and deliver such Notes. The Trustee
shall be entitled to receive an Officer's Certificate and an Opinion of Counsel
of the Company that it may reasonably request in connection with such
authentication of Notes. Such order shall specify the amount of Notes to be
authenticated and the date on which the original issue of Notes is to be
authenticated.

                  Each Note shall be dated the date of its authentication.

                  No Note shall be entitled to any benefit under this Indenture
or be valid or obligatory for any purpose unless there appears on such Note a
certificate of authentication, substantially in the form provided for in Exhibit
A, duly executed by the Trustee by manual signature of an authorized officer,
and such certificate upon any Note shall be conclusive
evidence, and the only evidence, that such Note has been duly authenticated and
delivered hereunder and is entitled to the benefits of this Indenture.

                  In case the Company, pursuant to Article Eight, shall be
consolidated or merged with or into any other Person or shall convey, transfer,
lease or otherwise dispose of its properties and assets substantially as an
entirety in a transaction or a series of transactions to any Person, and the
successor Person resulting from such consolidation, or surviving such merger, or
into which the Company shall have been merged, or the Person which shall have
received a conveyance, transfer, lease or other disposition as aforesaid, shall
have executed an indenture supplemental hereto with the Trustee pursuant to
Article Eight, any of the Notes authenticated or

                                       29
<PAGE>   36

delivered prior to such consolidation, merger, conveyance, transfer, lease or
other disposition may, from time to time, at the request of the successor
Person, be exchanged for other Notes executed in the name of the successor
Person with such changes in phraseology and form as may be appropriate, but
otherwise in substance of like tenor as the Notes surrendered for such exchange
and of like principal amount; and the Trustee, upon Company Request of the
successor Person, shall authenticate and deliver Notes as specified in such
request for the purpose of such exchange. If Notes shall at any time be
authenticated and delivered in any new name of a successor Person pursuant to
this Section in exchange or substitution for or upon registration of transfer of
any Notes, such successor Person, at the option of the Holders but without
expense to them, shall provide for the exchange of all Notes at the time
Outstanding for Notes authenticated and delivered in such new name.

SECTION 304.  Temporary Notes.

                  Pending the preparation of definitive Notes, the Company may
execute, and upon Company Order the Trustee shall authenticate and deliver,
temporary Notes which are printed, lithographed, typewritten, mimeographed or
otherwise produced, in any authorized denomination, substantially of the tenor
of the definitive Notes in lieu of which they are issued and with such
appropriate insertions, omissions, substitutions and other variations as the
officers executing such Notes may determine, as conclusively evidenced by their
execution of such Notes.

                  If temporary Notes are issued, the Company shall cause
definitive Notes to be prepared without unreasonable delay. After the
preparation of definitive Notes, the temporary Notes shall be exchangeable for
definitive Notes upon surrender of the temporary Notes at the office or agency
of the Company designated for such purpose pursuant to Section 1002 without
charge to the Holder. Upon surrender for cancellation of any one or more
temporary Notes, the Company shall execute and upon Company Order the Trustee
shall authenticate and deliver in exchange therefor a like principal amount of
definitive Notes of authorized denominations. Until so exchanged, the temporary
Notes shall in all respects be entitled to the same benefits under this
Indenture as definitive Notes.

SECTION 305.  Registration, Registration of Transfer and Exchange.

                  The Company shall cause to be kept at the Corporate Trust
Office of the Trustee a register (the register maintained in such office and in
any other office or agency designated pursuant to Section 1002 being herein
sometimes referred to as the "Register") in which, subject to such reasonable
regulations as it may prescribe, the Company shall provide for the registration
of Notes and of transfers of Notes. The Register shall be in written form or any
other form capable of being converted into written form within a reasonable
time. At all reasonable times, the Register shall be open to inspection by the
Trustee. The Trustee is hereby initially appointed as security registrar (the
"Registrar") for the purpose of registering Notes and transfers of Notes as
herein provided.

                                       30
<PAGE>   37

                  Upon surrender for registration of transfer of any Note at the
office or agency of the Company designated pursuant to Section 1002, the Company
shall execute, and the Trustee shall authenticate and deliver, in the name of
the designated transferee or transferees, one or more new Notes of any
authorized denomination or denominations of a like aggregate principal amount.

                  At the option of the Holder, Notes may be exchanged for other
Notes of any authorized denomination and of a like aggregate principal amount,
upon surrender of the Notes to be exchanged at such office or agency. Whenever
any Notes are so surrendered for exchange, the Company shall execute, and the
Trustee shall authenticate and deliver, the Notes which the Holder making the
exchange is entitled to receive.

                  All Notes issued upon any registration of transfer or exchange
of Notes shall be the valid obligations of the Company, evidencing the same
debt, and entitled to the same benefits under this Indenture, as the Notes
surrendered upon such registration of transfer or exchange.

                  Every Note presented or surrendered for registration of
transfer or for exchange shall be duly endorsed and be accompanied by a written
instrument of transfer, in form satisfactory to the Company and the Registrar,
duly executed by the Holder thereof or his attorney duly authorized in writing.

                  No service charge shall be made for any registration of
transfer or exchange or redemption of Notes, but the Company may require payment
of a sum sufficient to cover any tax or other governmental charge that may be
imposed in connection with any registration of transfer or exchange of Notes,
other than exchanges pursuant to Section 304, 906, 1010, 1017 or 1108 not
involving any transfer.

                  The Company shall not be required (i) to issue, register the
transfer of or exchange any Note during a period beginning at the opening of
business 15 days before the selection of Notes to be redeemed under Section 1104
and ending at the close of business on the day of such mailing of the relevant
notice of redemption, or (ii) to register the transfer of or exchange any Note
so selected for redemption in whole or in part, except the unredeemed portion of
any Note being redeemed in part.

SECTION 306.  Mutilated, Destroyed, Lost and Stolen Notes.

                  If (i) any mutilated Note is surrendered to the Trustee, or
(ii) the Company and the Trustee receive evidence to their satisfaction of the
destruction, loss or theft of any Note, and there is delivered to the Company
and the Trustee such security or indemnity as may be required by them to save
each of them harmless, then, in the absence of notice to the Company or the
Trustee that such Note has been acquired by a bona fide purchaser, the Company
shall execute and upon Company Order the Trustee shall authenticate and deliver,
in exchange for any such mutilated Note or in lieu of any such destroyed, lost
or stolen Note, a new Note of like tenor and principal amount, bearing a number
not contemporaneously outstanding.

                                       31
<PAGE>   38

                  In case any such mutilated, destroyed, lost or stolen Note has
become or is about to become due and payable, the Company in its discretion may,
instead of issuing a new Note, pay such Note.

                  Upon the issuance of any new Note under this Section 306, the
Company may require the payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in relation thereto and any other
expenses (including the fees and expenses of the Trustee) connected therewith.

                  Every new Note issued pursuant to this Section 306 in lieu of
any mutilated, destroyed, lost or stolen Note shall constitute an original
additional contractual obligation of the Company, whether or not the mutilated,
destroyed, lost or stolen Note shall be at any time enforceable by anyone, and
shall be entitled to all benefits of this Indenture equally and proportionately
with any and all other Notes duly issued hereunder.

                  The provisions of this Section 306 are exclusive and shall
preclude (to the extent lawful) all other rights and remedies with respect to
the replacement or payment of mutilated, destroyed, lost or stolen Notes.

SECTION 307.  Payment of Interest; Interest Rights Preserved.

                  Interest on any Note which is payable, and is punctually paid
or duly provided for, on any Interest Payment Date shall be paid to the Person
in whose name such Note (or Predecessor Notes) is registered at the close of
business on the Regular Record Date (or if a Predecessor Note is outstanding on
such Regular Record Date, such Predecessor Note) for such interest at the office
or agency of the Company maintained for such purpose pursuant to Section 1002
or, at the option of the Company, interest may be paid by check mailed to the
address of the Person entitled thereto as such address shall appear on the
Register; provided that all payments with respect to Global Notes the Holders of
which have given wire transfer instructions to the Company will be required to
be made by wire transfer of immediately available funds to the accounts
specified by the Holders thereof.

                  Any interest on any Note which is payable, but is not
punctually paid or duly provided for, on any Interest Payment Date shall
forthwith cease to be payable to the Holder on the Regular Record Date by virtue
of having been such Holder, and such defaulted interest and (to the extent
lawful) interest on such defaulted interest at the rate borne by the Notes (such
defaulted interest and interest thereon herein collectively called "Defaulted
Interest") may be paid by the Company, at its election in each case, as provided
in clause (1) or (2) below:

                  (1)      The Company may elect to make payment of any
         Defaulted Interest to the Persons in whose names the Notes (or their
         respective Predecessor Notes) are registered at the close of business
         on a special record date ("Special Record Date") for the payment of
         such Defaulted Interest, which shall be fixed in the following manner.
         The Company shall notify the Trustee in writing of the amount of
         Defaulted Interest proposed to be paid

                                       32
<PAGE>   39

         on each Note and the date of the proposed payment, and at the same time
         the Company shall deposit with the Trustee an amount of money equal to
         the aggregate amount proposed to be paid in respect of such Defaulted
         Interest or shall make arrangements satisfactory to the Trustee for
         such deposit prior to the date of the proposed payment, such money when
         deposited to be held in trust for the benefit of the Persons entitled
         to such Defaulted Interest as in this clause provided. Thereupon the
         Trustee shall fix a Special Record Date for the payment of such
         Defaulted Interest which shall be not more than 15 days and not less
         than 10 days prior to the date of the proposed payment and not less
         than 10 days after the receipt by the Trustee of the notice of the
         proposed payment. The Trustee shall promptly notify the Company of such
         Special Record Date and, in the name and at the expense of the Company,
         shall cause notice of the proposed payment of such Defaulted Interest
         and the Special Record Date therefor to be given in the manner provided
         for in Section 106 not less than 10 days prior to such Special Record
         Date. Notice of the proposed payment of such Defaulted Interest and the
         Special Record Date therefor having been so given, such Defaulted
         Interest shall be paid to the Persons in whose names the Notes (or
         their respective Predecessor Notes) are registered at the close of
         business on such Special Record Date and shall no longer be payable
         pursuant to the following clause (2).

                  (2)      The Company may make payment of any Defaulted
         Interest in any other lawful manner not inconsistent with the
         requirements of any securities exchange on which the Notes may be
         listed, and upon such notice as may be required by such exchange, if,
         after notice given by the Company to the Trustee of the proposed
         payment pursuant to this clause, such manner of payment shall be deemed
         practicable by the Trustee.

                  Subject to the foregoing provisions of this Section 307, each
Note delivered under this Indenture upon registration of transfer of or in
exchange for or in lieu of any other Note shall carry the rights to interest
accrued and unpaid, and to accrue, which were carried by such other Note.

SECTION 308.  Persons Deemed Owners.

                  Prior to the due presentment of a Note for registration of
transfer, the Company, the Trustee and any agent of the Company or the Trustee
may treat the Person in whose name such Note is registered as the owner of such
Note for the purpose of receiving payment of principal of (and premium, if any)
and (subject to Sections 305 and 307) interest on such Note and for all other
purposes whatsoever, whether or not such Note be overdue, and none of the
Company, the Trustee or any agent of the Company or the Trustee shall be
affected by notice to the contrary.

                                       33
<PAGE>   40

SECTION 309.  Cancellation.

                  All Notes surrendered for payment, redemption, registration of
transfer or exchange shall, if surrendered to any Person other than the Trustee,
be delivered to, and promptly cancelled by, the Trustee. The Company may at any
time deliver to the Trustee for cancellation any Notes previously authenticated
and delivered hereunder which the Company may have acquired in any manner
whatsoever, and may deliver to the Trustee (or to any other Person for delivery
to the Trustee) for cancellation any Notes previously authenticated hereunder
which the Company has not issued and sold, and all Notes so delivered shall be
promptly cancelled by the Trustee. If the Company shall so acquire any of the
Notes, however, such acquisition shall not operate as a redemption or
satisfaction of the Indebtedness represented by such Notes unless and until the
same are surrendered to the Trustee for cancellation. No Notes shall be
authenticated in lieu of or in exchange for any Notes cancelled as provided in
this Section, except as expressly permitted by this Indenture. All cancelled
Notes held by the Trustee shall be disposed of by the Trustee in accordance with
its customary procedures and certification of their disposal delivered to the
Company unless by Company Order the Company shall direct that cancelled Notes be
returned to it after being appropriately designated as cancelled.

SECTION 310.  Computation of Interest.

                  Interest on the Notes shall be computed on the basis of a
360-day year of twelve 30-day months.

SECTION 311.  Book-Entry Provisions for Global Notes.

                  (a)      Each Global Note initially shall (i) be registered in
the name of the Depositary for such Global Notes or the nominee of such
Depositary, (ii) be delivered to the Trustee as custodian for such Depositary
and (iii) bear legends as set forth in Section 202.

                  Except as provided in Section 311(b), owners of beneficial
interests in the Global Notes will not have Notes registered in their names,
will not receive physical delivery of Notes in certificated form and will not be
considered the registered owner or Holder thereof under this Indenture for any
purpose.

                  Members of, or Participants in, the Depositary shall have no
rights under this Indenture with respect to any Global Note, and the Depositary
may be treated by the Company, the Trustee and any agent of the Company or the
Trustee as the absolute owner of such Global Note for all purposes whatsoever.
Notwithstanding the foregoing, nothing herein shall prevent the Company, the
Trustee or any agent of the Company or the Trustee from giving effect to any
written certification, proxy or other authorization furnished by the Depositary
or impair, as between the Depositary and its Participants, the operation of
customary practices governing the exercise of the rights of a beneficial owner
of any Note. The registered Holder of a Global Note may grant proxies and
otherwise authorize any person, including Participants and persons that

                                       34
<PAGE>   41

may hold interests through Participants, to take any action which a Holder is
entitled to take under this Indenture or the Notes.

                  (b)      Interests of beneficial owners in a Global Note may
be transferred in accordance with the applicable rules and procedures of the
Depositary. Transfers of a Global Note shall be limited to transfers of such
Global Note in whole, but not in part, to the Depositary, a nominee of the
Depositary, its successors or their respective nominees. Interests of beneficial
owners in the Global Notes may be transferred in accordance with the rules and
procedures of the Depositary. Notes in certificated form shall be transferred to
beneficial owners in exchange for their beneficial interests in the Global Note,
as the case may be, if (i) the Depositary (A) notifies the Company that it is
unwilling or unable to continue as depository for the Global Notes and the
Company thereupon fails to appoint a successor depository or (B) has ceased to
be a clearing agency registered under the Exchange Act; (ii) there shall have
occurred and be continuing an Event of Default with respect to the Notes; or
(iii) the Company, at its option, notifies the Trustee in writing that it elects
to cause issuance of the Notes in certificated form. In connection with a
transfer of an entire Global Note to beneficial owners pursuant to clause (i),
(ii) or (iii) of this paragraph (b), the applicable Global Note shall be deemed
to be surrendered to the Trustee for cancellation, and the Company shall
execute, and the Trustee shall authenticate and deliver, to each beneficial
owner identified by the Depositary in exchange for its beneficial interest in
the applicable Global Note, an equal aggregate principal amount of certificated
notes of authorized denominations.

                                  ARTICLE FOUR

                           SATISFACTION AND DISCHARGE

SECTION 401.  Satisfaction and Discharge of Indenture.

                  This Indenture shall upon Company Request cease to be of
further effect (except as to surviving rights of registration of transfer or
exchange of Notes as expressly provided for herein or pursuant hereto) and the
Trustee, at the expense of the Company, shall execute proper instruments
acknowledging satisfaction and discharge of this Indenture when

                  (1)   either

                           (A)      All Notes theretofore authenticated and
                  delivered (other than (i) Notes which have been destroyed,
                  lost or stolen and which have been replaced or paid as
                  provided in Section 306 and (ii) Notes for whose payment money
                  has theretofore been deposited in trust with the Trustee or
                  any Paying Agent or segregated and held in trust by the
                  Company and thereafter repaid to the Company or discharged
                  from such trust, as provided in Section 1003) have been
                  delivered to the Trustee for cancellation; or

                                       35
<PAGE>   42

                           (B)      all such Notes not theretofore delivered to
                  the Trustee for cancellation (other than Notes which have been
                  destroyed, lost or stolen and which have been replaced or paid
                  as provided in Section 306)

                                    (i)      have become due and payable, or

                                    (ii)     will become due and payable at
                           their Stated Maturity within one year, or

                                    (iii)    are to be called for redemption
                           within one year under arrangements satisfactory to
                           the Trustee for the giving of notice of redemption by
                           the Trustee in the name, and at the expense, of the
                           Company,

                  and the Company, in the case of (i), (ii) or (iii) above, has
                  irrevocably deposited or caused to be deposited with the
                  Trustee as trust funds in trust for such purpose in an amount
                  sufficient to pay and discharge the entire Indebtedness on
                  such Notes not theretofore delivered to the Trustee for
                  cancellation, for principal (and premium, if any) and interest
                  to the date of such deposit (in the case of Notes which have
                  become due and payable) or to the Stated Maturity or
                  Redemption Date, as the case may be, together with irrevocable
                  instructions from the Company directing the Trustee to apply
                  such funds to the payment thereof at Stated Maturity or
                  redemption, as the case may be;

                           (2)      the Company has paid or caused to be paid
                  all other sums payable hereunder by the Company; and

                           (3)      the Company has delivered to the Trustee an
                  Officer's Certificate and an Opinion of Counsel, each stating
                  that all conditions precedent herein provided for relating to
                  the satisfaction and discharge of this Indenture have been
                  complied with.

                  Notwithstanding the satisfaction and discharge of this
Indenture, the obligations of the Company to the Trustee under Section 606 and,
if money shall have been deposited with the Trustee pursuant to subclause (B) of
clause (1) of this Section, the obligations of the Trustee under Section 402 and
the last paragraph of Section 1003 shall survive.

SECTION 402.  Application of Trust Money

                  On or prior to the effective date of this Indenture, the
Trustee shall establish a segregated, non-interest bearing corporate trust
account (the "Payment Account") maintained by the Trustee for the benefit of the
Holders in which all amounts paid to the Trustee for the benefit
of the Holders in respect of the Notes will be held (except for amount
designated to be deposited into the Pledge Account) and from which the Trustee
(if the Trustee is the Paying Agent) shall

                                       36
<PAGE>   43

make payments to the Holders in accordance with this Indenture and the Notes.
Subject to the provisions of the last paragraph of Section 1003, all money
deposited with the Trustee pursuant to Section 401 and otherwise pursuant to
this Indenture shall be held in trust and applied by it, in accordance with the
provisions of the Notes and this Indenture, to the payment, either directly or
through any Paying Agent (including the Company acting as its own Paying Agent)
as the Trustee may determine, to the Persons entitled thereto, of the principal
(and premium, if any) and interest for whose payment such money has been
deposited with the Trustee.

                                  ARTICLE FIVE

                                    REMEDIES

SECTION 501.  Events of Default.

                  "Event of Default", wherever used herein, means any one of the
following events (whatever the reason for such Event of Default and whether it
shall be voluntary or involuntary or be effected by operation of law or pursuant
to any judgment, decree or order of any court or any order, rule or regulation
of any administrative or governmental body):

                  (1)      default in the payment of any interest on any Note
         when due and payable as to any Interest Payment Date falling on or
         prior to January 15, 2001; or

                  (2)      default in the payment of interest on any Note when
         due and payable as to any Interest Payment Date following after January
         15, 2001, and any such failure continued for a period of 30 days; or

                  (3)      default in the payment of the principal of (or
         premium, if any, on) any Note at its Stated Maturity, upon
         acceleration, redemption or otherwise; or

                  (4)      default in the payment of principal or interest on
         any Note required to be purchased pursuant to an Offer to Purchase or
         an Excess Proceeds Offer as described in Section 1017 or pursuant to a
         Change of Control Offer as described in Section 1010; or

                  (5)      failure to perform or comply with the provisions of
         Section 801; or

                  (6)      default in the performance or breach of any covenant
         or agreement of the Company in this Indenture or under the Notes (other
         than a default in the performance, or breach, of a covenant or
         agreement which is specifically dealt with elsewhere in this Section),
         and continuance of such default or breach for a period of 30
         consecutive days after there has been given to the Company by the
         Trustee or the Holders of at least 25% or more in aggregate principal
         amount of the Notes then Outstanding a written notice specifying such
         default or breach; or

                                       37
<PAGE>   44

                  (7)      (A) there shall have occurred with respect to any
         issue or issues of Indebtedness of the Company or any Restricted
         Subsidiary having an outstanding principal amount of $5 million or more
         in the aggregate for all such issues of all such Persons, whether such
         Indebtedness now exists or shall hereafter be created, (I) an event of
         default that has caused the Holder thereof to declare such Indebtedness
         to be due and payable prior to its Stated Maturity and such
         Indebtedness has not been discharged in full or such acceleration has
         not been rescinded or annulled by the expiration of any applicable
         grace period and/or (II) the failure to make a principal payment at the
         final (but not any interim) fixed Maturity Date thereon and such
         defaulted payment shall not have been made, waived or extended by the
         expiration of any applicable grace period; or

                  (8)      any final judgment or order (not covered by
         insurance) for the payment of money in excess of $5 million in the
         aggregate for all such final judgments or orders against all such
         Persons (treating any deductibles, self-insurance or retention as not
         so covered) shall be rendered against the Company or any Restricted
         Subsidiary and shall not be paid or discharged, and there shall be any
         period of 30 consecutive days following entry of the final judgment or
         order that causes the aggregate amount for all such final judgments or
         orders outstanding and not paid or discharged against all such Persons
         to exceed $5 million during which a stay of enforcement of such final
         judgment or order, by reason of a pending appeal or otherwise, shall
         not be in effect; or

                  (9)      a court having jurisdiction in the premises enters a
         decree or order for (A) relief in respect of the Company or any of its
         Significant Subsidiaries in an involuntary case under any applicable
         bankruptcy, insolvency or other similar law now or hereafter in effect,
         (B) appointment of a receiver, liquidator, assignee, custodian,
         trustee, sequestrator or similar official of the Company or any of its
         Significant Subsidiaries or for all or substantially all of the
         property and assets of the Company or any of its Significant
         Subsidiaries or (C) the winding up or liquidation of the affairs of the
         Company or any of its Significant Subsidiaries and, in each case, such
         decree or order shall remain unstayed and in effect for a period of 30
         consecutive days; or

                  (10)     the Company or any of its Significant Subsidiaries
         (A) commences a voluntary case under any applicable bankruptcy,
         insolvency or other similar law now or hereafter in effect, or consents
         to the entry of an order for relief in an involuntary case under any
         such law, (B) consents to the appointment of or taking possession by a
         receiver, liquidator, assignee, custodian, trustee, sequestrator or
         similar official of the Company or any of its Significant Subsidiaries
         or for all or substantially all of the property and assets of the
         Company or any of its Significant Subsidiaries or (C) effects any
         general assignment for the benefit of creditors; or

                  (11)     the Company asserts in writing that the Pledge
         Agreement ceases to be in full force and effect before payment in full
         of the obligations thereunder.

                                       38
<PAGE>   45

SECTION 502.  Acceleration of Maturity; Rescission and Annulment.

                  If an Event of Default (other than an Event of Default
specified in Section 501(9) or 501(10)) occurs and is continuing, then and in
every such case the Trustee or the Holders of not less than 25% in aggregate
principal amount of the Notes Outstanding by a notice in writing to the Company
(and to the Trustee if such notice given by such Holders), may, and the Trustee
at the request of such Holders shall, declare the principal of, premium, if any,
and accrued but unpaid interest on all the Notes to be immediately due and
payable. Upon any such declaration of acceleration, such principal of, premium,
if any, and accrued interest shall become immediately due and payable. If an
Event of Default specified in Section 501(9) or 501(10) occurs, then the
principal of, premium, if any, and accrued interest shall ipso facto become and
be immediately due and payable without any declaration or other act on the part
of the Trustee or any Holder.

                  At any time after a declaration of acceleration has been made,
the Holders of at least a majority in aggregate principal amount of the Notes
Outstanding, by written notice to the Company and the Trustee, may rescind and
annul such declaration and its consequences if:

                  (1)      all existing Events of Default, other than the
         nonpayment of amounts of principal of, premium, if any, and accrued and
         unpaid interest on the Notes which have become due solely by such
         declaration of acceleration, have been cured or waived subject to the
         limitations set forth in Section 513; and

                  (2)      the rescission, in the opinion of counsel, would not
         conflict with any judgment or decrees of a court of competent
         jurisdiction.

No such rescission shall affect any subsequent default or impair any right
consequent thereon.

                  Notwithstanding the preceding paragraph, in the event of a
declaration of acceleration in respect of the Notes because an Event of Default
specified in Section 501(7) shall have occurred and be continuing, such
declaration of acceleration shall be automatically annulled if the Indebtedness
that is the subject of such Event of Default has been discharged or the Holders
thereof have rescinded their declaration of acceleration in respect of such
Indebtedness, and written notice of such discharge or rescission, as the case
may be, shall have been given to the Trustee by the Company and countersigned by
the Holders of such Indebtedness or a trustee, fiduciary or agent for such
Holders, within 60 days after such declaration of acceleration in respect of the
Notes, and no other Event of Default has occurred during such 60-day period
which has not been cured or waived during such period.

SECTION 503.  Collection of Indebtedness and Suits for Enforcement by Trustee.

                  The Company covenants that if

                                       39
<PAGE>   46

                  (a)      default is made in the payment of any installment of
         interest on any Note when such interest becomes due and payable and
         such default continues for a period of 30 days, or

                  (b)      default is made in the payment of the principal of
         (or premium, if any, on) any Note at the Maturity thereof,

the Company shall pay to the Trustee for the benefit of the Holders of such
Notes, the whole amount then due and payable on such Notes for principal (and
premium, if any) and interest, and interest on any overdue principal (and
premium, if any) and, to the extent that payment of such interest shall be
legally enforceable, upon any overdue installment of interest at the rate borne
by the Notes, and, in addition thereto, such further amount as shall be
sufficient to cover the costs and expenses of collection, including the
reasonable compensation, fees expenses, disbursements and advances of the
Trustee, its agents and counsel.

                  If the Company fails to pay such amounts forthwith upon such
demand, the Trustee, in its own name as trustee of an express trust, may
institute a judicial proceeding for the collection of the sums so due and
unpaid, may prosecute such proceeding to judgment or final decree and may
enforce the same against the Company or any other obligor upon the Notes and
collect the moneys adjudged or decreed to be payable in the manner provided by
law out of the property of the Company or any other obligor upon the Notes,
wherever situated.

                  If an Event of Default occurs and is continuing, the Trustee
may in its discretion proceed to protect and enforce its rights and the rights
of the Holders by such appropriate judicial proceedings as the Trustee shall
deem most effectual to protect and enforce any such rights, whether for the
specific enforcement of any covenant or agreement in this Indenture or in aid of
the exercise of any power granted herein, or to enforce any other proper remedy.

SECTION 504.  Trustee May File Proofs of Claim.

                  In case of the pendency of any receivership, insolvency,
liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or
other judicial proceeding relative to the Company or any other obligor upon the
Notes or the property of the Company or of such other obligor or their
creditors, the Trustee (irrespective of whether the principal of the Notes shall
then be due and payable as therein expressed or by declaration or otherwise and
irrespective of whether the Trustee shall have made any demand on the Company
for the payment of overdue principal, premium, if any, or interest) shall be
entitled and empowered, by intervention in such proceeding or otherwise,

                  (i) to file and prove a claim for the whole amount of
         principal (and premium, if any) and interest owing and unpaid in
         respect of the Notes and to file such other papers or documents and
         take other actions as the Trustee may deem necessary or advisable in
         order to have the claims of the Trustee (including any claim for the
         reasonable

                                       40
<PAGE>   47

         compensation, expenses, disbursements and advances of the Trustee, its
         agents and counsel) and of the Holders allowed in such judicial
         proceeding, and

                  (ii)     to collect and receive any moneys or other property
         payable or deliverable on any such claims and to distribute the same;

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or
similar official in any such judicial proceeding is hereby authorized by each
Holder to make such payments to the Trustee and, in the event that the Trustee
shall consent to the making of such payments directly to the Holders, to pay the
Trustee any amount due it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any other
amounts due the Trustee under Section 606.

                  Nothing herein contained shall be deemed to authorize the
Trustee to authorize or consent to or accept or adopt on behalf of any Holder
any plan of reorganization, arrangement, adjustment or composition affecting the
Notes or the rights of any Holder thereof, or to authorize the Trustee to vote
in respect of the claim of any Holder in any such proceeding.

SECTION 505.  Trustee May Enforce Claims Without Possession of Notes.

                  All rights of action and claims under this Indenture or the
Notes may be prosecuted and enforced by the Trustee without the possession of
any of the Notes or the production thereof in any proceeding relating thereto,
and any such proceeding instituted by the Trustee shall be brought in its own
name and as trustee of an express trust, and any recovery of judgment shall,
after provision for the payment of the reasonable compensation, fees, expenses,
disbursements and advances of the Trustee, its agents and counsel, be for the
ratable benefit of the Holders of the Notes in respect of which such judgment
has been recovered.

SECTION 506.  Application of Money Collected.

                  Any money collected by the Trustee pursuant to this Article
shall be applied in the following order, at the date or dates fixed by the
Trustee and, in case of the distribution of such money on account of principal
(or premium, if any) or interest, upon presentation of the Notes and the
notation thereon of the payment if only partially paid and upon surrender
thereof if fully paid:

                  FIRST:   To the payment of all amounts due the Trustee under
         Section 606;

                  SECOND:  To the payment of the amounts then due and unpaid for
         principal of (and premium, if any) and interest on the Notes in respect
         of which or for the benefit of which such money has been collected,
         ratably, without preference or priority of any kind, according to the
         amounts due and payable on such Notes for principal (and premium, if
         any) and interest, respectively; and

                                       41
<PAGE>   48

                  THIRD:   The balance, if any, to the Person or Persons
         entitled thereto.

SECTION 507.  Limitation on Suits.

                  Except to enforce the right to receive payment of principal or
premium, if any, or interest when due, no Holder of any Notes shall have any
right to institute any proceeding, judicial or otherwise, with respect to this
Indenture, or for the appointment of a receiver or trustee, or for any other
remedy hereunder, unless the following conditions have been met:

                  (1)      such Holder has previously given written notice to
         the Trustee of a continuing Event of Default;

                  (2)      the Holders of not less than 25% in aggregate
         principal amount of the Outstanding Notes shall have made written
         request to the Trustee to pursue the remedy in respect of such Event of
         Default in its own name as trustee hereunder;

                  (3)      such Holder or Holders have offered to the Trustee
         indemnity satisfactory to the Trustee against any costs, expenses and
         liabilities to be incurred in compliance with such request;

                  (4)      the Trustee has failed to institute any such
         proceeding for 60 days after its receipt of such notice, request and
         offer of indemnity; and

                  (5)      during such 60-day period, no direction inconsistent
         with such written request has been given to the Trustee by the Holders
         of a majority or more in aggregate principal amount of the Outstanding
         Notes;

it being understood and intended that no one or more Holders shall have any
right in any manner whatever by virtue of, or by availing of, any provision of
this Indenture to affect, disturb or prejudice the rights of any other Holders,
or to obtain or to seek to obtain priority or preference over any other Holders
or to enforce any right under this Indenture, except in the manner herein
provided and for the equal and ratable benefit of all the Holders.

SECTION 508. Unconditional Right of Holders to Receive Principal, Premium and
Interest.

                  Notwithstanding any other provision in this Indenture, the
Holder of any Note shall have the right, which is absolute and unconditional, to
receive payment, as provided herein (including, if applicable, Article Thirteen)
and in such Note of the principal of (and premium, if any) and (subject to
Section 307) interest on such Note on the respective Stated Maturities expressed
in such Note (or, in the case of redemption, on the Redemption Date) and to
institute suit for the enforcement of any such payment on or after such Stated
Maturities, and such rights shall not be impaired without the consent of such
Holder.

                                       42
<PAGE>   49
SECTION 509.  Restoration of Rights and Remedies.

                  If the Trustee or any Holder has instituted any proceeding to
enforce any right or remedy under this Indenture and such proceeding has been
discontinued or abandoned for any reason, or has been determined adversely to
the Trustee or to such Holder, then and in every such case, subject to any
determination in such proceeding, the Company, the Trustee and the Holders shall
be restored severally and respectively to their former positions hereunder and
thereafter all rights and remedies of the Trustee and the Holders shall continue
as though no such proceeding had been instituted.

SECTION 510.  Rights and Remedies Cumulative.

                  Except as otherwise provided with respect to the replacement
or payment of mutilated, destroyed, lost or stolen Notes in the last paragraph
of Section 306, no right or remedy herein conferred upon or reserved to the
Trustee or to the Holders is intended to be exclusive of any other right or
remedy, and every right and remedy shall, to the extent permitted by law, be
cumulative and in addition to every other right and remedy given hereunder or
now or hereafter existing at law or in equity or otherwise. The assertion or
employment of any right or remedy hereunder, or otherwise, shall not prevent the
concurrent assertion or employment of any other appropriate right or remedy.

SECTION 511.  Delay or Omission Not Waiver.

                  No delay or omission of the Trustee or of any Holder of any
Note to exercise any right or remedy accruing upon any Event of Default shall
impair any such right or remedy or constitute a waiver of any such Event of
Default or an acquiescence therein. Every right and remedy given by this Article
or by law to the Trustee or to the Holders may be exercised from time to time,
and as often as may be deemed expedient, by the Trustee or by the Holders, as
the case may be.

SECTION 512.  Control by Holders.

                  The Holders of not less than a majority in aggregate principal
amount of the Outstanding Notes shall have the right to direct the time, method
and place of conducting any proceeding for any remedy available to the Trustee,
or exercising any trust or power conferred on the Trustee, provided that

                  (1)      the Trustee need not take any action that conflicts
         with law or this Indenture, which might involve the Trustee in personal
         liability or which, in the good faith determination of the Trustee, may
         be unduly prejudicial to rights Holders not joining in the giving of
         such direction, and

                  (2)      the Trustee may take any other action deemed proper
         by the Trustee which is not inconsistent with such direction.

                                       43
<PAGE>   50
SECTION 513.  Waiver of Past Defaults.

                  The Holders of not less than a majority in aggregate principal
amount of the Outstanding Notes may on behalf of the Holders of all the Notes
waive any past default hereunder and its consequences, except a default

                  (1)      in respect of the payment of the principal of (or
         premium, if any) or interest on any Note, or

                  (2)      in respect of a covenant or provision hereof which
         under Article Nine cannot be modified or amended without the consent of
         the Holder of each Outstanding Note affected.

                  Upon any such waiver, such default shall cease to exist, and
any Event of Default arising therefrom shall be deemed to have been cured, for
every purpose of this Indenture; but no such waiver shall extend to any
subsequent or other default or Event of Default or impair any right consequent
thereon.

SECTION 514.  Waiver of Stay or Extension Laws.

                  The Company covenants (to the extent that it may lawfully do
so) that it shall not at any time insist upon, or plead, or in any manner
whatsoever claim or take the benefit or advantage of, any stay or extension law
wherever enacted, now or at any time hereafter in force, which may affect the
covenants or the performance of this Indenture; and the Company (to the extent
that it may lawfully do so) hereby expressly waives all benefit or advantage of
any such law and covenants that it shall not hinder, delay or impede the
execution of any power herein granted to the Trustee, but shall suffer and
permit the execution of every such power as though no such law had been enacted.

                                   ARTICLE SIX

                                   THE TRUSTEE

SECTION 601.  Notice of Defaults.

                  Within 90 days after the occurrence of any Default hereunder,
the Trustee shall transmit in the manner and to the extent provided in TIA
Section 313(c), notice of such Default hereunder of the Trustee, unless such
Default shall have been cured or waived; provided, however, that, except in the
case of a Default in the payment of the principal of (or premium, if any) or
interest on any Note, the Trustee shall be protected in withholding such notice
if and so long as the board of directors, the executive committee or a trust
committee of directors and/or Responsible Officers of the Trustee in good faith
determines that the withholding of such notice

                                       44
<PAGE>   51
is in the interest of the Holders; and provided further that in the case of any
Default of the character specified in Section 501(7), no such notice to Holders
shall be given until at least 30 days after the occurrence thereof.

                  In case an Event of Default has occurred and is continuing,
the Trustee shall exercise such of the rights and powers vested in it by this
Indenture, and use the same degree of care and skill in their exercise, as a
prudent person would exercise or use under the circumstances in the conduct of
his or her own affairs.

SECTION 602.  Certain Rights of Trustee.

                  Subject to the provisions of TIA Sections 315(a) through
315(d):

                  (1)      the Trustee may rely and shall be protected in acting
         or refraining from acting upon any resolution, certificate, statement,
         instrument, opinion, report, notice, request, direction, consent,
         order, bond, debenture, note, other evidence of indebtedness or other
         paper or document believed by it to be genuine and to have been signed
         or presented by the proper party or parties;

                  (2)      any request or direction of the Company mentioned
         herein shall be sufficiently evidenced by a Company Request or Company
         Order and any resolution of the Board of Directors may be sufficiently
         evidenced by a Board Resolution;

                  (3)      whenever in the administration of this Indenture the
         Trustee shall deem it desirable that a matter be proved or established
         prior to taking, suffering or omitting any action hereunder, the
         Trustee (unless other evidence be herein specifically prescribed) may,
         in the absence of bad faith on its part, may require and rely upon an
         Officer's Certificate;

                  (4)      the Trustee may consult with counsel and the written
         advice of such counsel or any Opinion of Counsel shall be full and
         complete authorization and protection in respect of any action taken,
         suffered or omitted by it hereunder in good faith and in reliance
         thereon;

                  (5)      the Trustee shall be under no obligation to exercise
         any of the rights or powers vested in it by this Indenture at the
         request or direction of any of the Holders pursuant to this Indenture,
         unless such Holders shall have offered to the Trustee reasonable
         security or indemnity against the costs, expenses and liabilities which
         might be incurred by it in compliance with such request or direction;

                  (6)      the Trustee shall not be bound to make any
         investigation into the facts or matters stated in any resolution,
         certificate, statement, instrument, opinion, report, notice, request,
         direction, consent, order, bond, debenture, note, other evidence of
         indebtedness or other paper or document, but the Trustee, in its
         discretion, may make such further inquiry or investigation into such
         facts or matters as it may see fit, and, if the Trustee shall determine
         to make such further

                                       45
<PAGE>   52

         inquiry or investigation, it shall be entitled to examine the books,
         records and premises of the Company, personally or by agent or
         attorney;

                  (7)      the Trustee may execute any of the trusts or powers
         hereunder or perform any duties hereunder either directly or by or
         through agents or attorneys and the Trustee shall not be responsible
         for any misconduct or negligence on the part of any agent or attorney
         appointed with due care by it hereunder;

                  (8)      the Trustee shall not be liable for any action taken,
         suffered or omitted by it in good faith and believed by it to be
         authorized or within the discretion or rights or powers conferred upon
         it by this Indenture;

                  (9)      any permissive right or power available to the
         Trustee under this Indenture or any supplement hereto shall not be
         construed to be a mandatory duty or obligation;

                  (10)     the Trustee shall not be charged with knowledge of
         any matter (including any default, other than as described in Section
         501(1), (2) or (3)) unless and except to the extent actually known to a
         Responsible Officer of the Trustee or to the extent written notice
         thereof is received by the Trustee at the Corporate Trust Office; and

                  (11)     the Trustee shall have no liability for any
         inaccuracy in the books or records of, or for any actions or omissions
         of the Depositary.

                  The Trustee shall not be required to expend or risk its own
funds or otherwise incur any financial liability in the performance of any of
its duties hereunder, or in the exercise of any of its rights or powers if it
shall have reasonable grounds for believing that repayment of such funds or
adequate indemnity against such risk or liability is not reasonably assured to
it.

                  The Trustee shall not be required to examine any of the
reports and documents filed with it pursuant to Sections 703 or 1009 to
determine whether or not the Company is in compliance with the covenants set
forth at Sections 1010 through 1021.

SECTION 603.  Trustee Not Responsible for Recitals or Issuance of Notes.

                  The recitals contained in this Indenture and in the Notes,
except for the Trustees certificates of authentication, shall be taken as the
statements of the Company, and the Trustee assumes no responsibility for their
correctness. The Trustee makes no representations as to the validity or
sufficiency of this Indenture or of the Notes, except that the Trustee
represents that it is duly authorized to execute and deliver this Indenture,
authenticate the Notes and perform its obligations hereunder and that the
statements made by it in a Statement of Eligibility on Form T-1 supplied to the
Company are true and accurate, subject to the qualifications set forth therein.

                                       46
<PAGE>   53

The Trustee shall not be accountable for the use or application by the Company
of Notes or the proceeds thereof.

SECTION 604.  May Hold Notes.

                  The Trustee, any Paying Agent, any Registrar or any other
agent of the Company or of the Trustee, in its individual or any other capacity,
may become the owner or pledgee of Notes and, subject to TIA Sections 310(b) and
311, may otherwise deal with the Company with the same rights it would have if
it were not Trustee, Paying Agent, Registrar or such other agent.

SECTION 605.  Money Held in Trust.

                  Money held by the Trustee in trust hereunder shall be
segregated from other funds. The Trustee shall be under no liability for
interest on any money received by it hereunder.

SECTION 606.  Compensation and Reimbursement.

                  The Company agrees:

                  (1)      to pay to the Trustee from time to time reasonable
         compensation for all services rendered by it hereunder and under the
         Pledge Agreement (which compensation shall not be limited by any
         provision of law in regard to the compensation of a trustee of an
         express trust);

                  (2)      except as otherwise expressly provided herein, to
         reimburse the Trustee upon its request for all reasonable expenses,
         disbursements and advances incurred or made by the Trustee in
         accordance with any provision of this Indenture and under the Pledge
         Agreement (including the reasonable compensation and the expenses and
         disbursements of its agents and counsel), except any such expense,
         disbursement or advance as may be attributable to its negligence or bad
         faith; and

                  (3)      to indemnify the Trustee for, and to hold it harmless
         against, any loss, liability or expense incurred without gross
         negligence or bad faith on its part, arising out of or in connection
         with the acceptance and administration of its duties under the Pledge
         Agreement or the acceptance or administration of this trust, including
         the costs and expenses of defending itself against any claim or
         liability in connection with the exercise or performance of any of its
         powers or duties hereunder.

                  The obligations of the Company under this Section to
compensate the Trustee, to pay or reimburse the Trustee for expenses,
disbursements and advances and to indemnify and hold harmless the Trustee shall
constitute additional indebtedness hereunder and shall survive the satisfaction
and discharge of this Indenture. As security for the performance of such
obligations of the Company, the Trustee shall have a claim prior to the Notes
upon all property and funds

                                       47
<PAGE>   54
held or collected by the Trustee as such, except funds held in trust for the
payment of principal of (and premium, if any) or interest on particular Notes.

                  When the Trustee incurs expenses or renders services in
connection with an Event of Default specified in Section 501(8) or (9), the
expenses (including the reasonable charges and expenses of its counsel) of and
the compensation for such services are intended to constitute expenses of
administration under any applicable federal or state bankruptcy, insolvency or
other similar law; provided, however, that if any such amounts are not paid as
expenses of administration, they may be collected by the Trustee as amounts
payable to it pursuant to Section 506.

                  The provisions of this Section 606 shall survive the
termination of this Indenture.

SECTION 607.  Corporate Trustee Required; Eligibility.

                  There shall be at all times a Trustee hereunder which shall be
eligible to act as Trustee under TIA Section 310(a)(1) and shall have a combined
capital and surplus of at least $50 million. If such corporation publishes
reports of condition at least annually, pursuant to law or to the requirements
of federal, state, territorial or District of Columbia supervising or examining
authority, then for the purposes of this Section, the combined capital and
surplus of such corporation shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published. If at
any time the Trustee shall cease to be eligible in accordance with the
provisions of this Section 607, it shall resign immediately in the manner and
with the effect hereinafter specified in this Article.

SECTION 608.  Resignation and Removal; Appointment of Successor.

                  (a) No resignation or removal of the Trustee and no
appointment of a successor Trustee pursuant to this Article shall become
effective until the acceptance of appointment by the successor Trustee in
accordance with the applicable requirements of Section 609.

                  (b) The Trustee may resign at any time by giving written
notice thereof to the Company. If the instrument of acceptance by a successor
Trustee required by Section 609 shall not have been delivered to the Trustee
within 30 days after the giving of such notice of resignation, the resigning
Trustee may petition any court of competent jurisdiction for the appointment of
a successor Trustee.

                  (c) The Trustee may be removed at any time by Act of the
Holders of not less than a majority in aggregate principal amount of the
Outstanding Notes, delivered to the Trustee and to the Company.

                  (d) If at any time:

                                       48
<PAGE>   55
                           (1)      the Trustee shall fail to comply with the
                  provisions of TIA Section 310(b) after written request
                  therefor by the Company or by any Holder who has been a bona
                  fide Holder of a Note for at least six months, or

                           (2)      the Trustee shall cease to be eligible under
                  Section 607 and shall fail to resign after written request
                  therefor by the Company or by any Holder who has been a bona
                  fide Holder of a Note for at least six months, or

                           (3)      the Trustee shall become incapable of acting
                  or shall be adjudged a bankrupt or insolvent or a receiver of
                  the Trustee or of its property shall be appointed or any
                  public officer shall take charge or control of the Trustee or
                  of its property or affairs for the purpose of rehabilitation,
                  conservation or liquidation,

then, in any such case, (i) the Company, by a Board Resolution, may remove the
Trustee, or (ii) subject to TIA Section 315(e), any Holder who has been a bona
fide Holder of a Note for at least six months may, on behalf of himself and all
others similarly situated, petition any court of competent jurisdiction for the
removal of the Trustee and the appointment of a successor Trustee.

                  (e) If the Trustee shall resign, be removed or become
incapable of acting, or if a vacancy shall occur in the office of Trustee for
any cause, the Company, by a Board Resolution, shall promptly appoint a
successor Trustee. If, within one year after such resignation, removal or
incapability, or the occurrence of such vacancy, a successor Trustee shall be
appointed by Act of the Holders of a majority in aggregate principal amount of
the Outstanding Notes delivered to the Company and the retiring Trustee, the
successor Trustee so appointed shall, forthwith upon its acceptance of such
appointment, become the successor Trustee and supersede the successor Trustee
appointed by the Company. If no successor Trustee shall have been so appointed
by the Company or the Holders and accepted appointment in the manner hereinafter
provided, any Holder who has been a bona fide Holder of a Note for at least six
months may, on behalf of himself and all others similarly situated, petition any
court of competent jurisdiction for the appointment of a successor Trustee.

                  (f) The Company shall give notice of each resignation and each
removal of the Trustee and each appointment of a successor Trustee to the
Holders in the manner provided for in Section 106. Each notice shall include the
name of the successor Trustee and the address of its Corporate Trust Office.

SECTION 609.  Acceptance of Appointment by Successor.

                  Every successor Trustee appointed hereunder shall execute,
acknowledge and deliver to the Company and to the retiring Trustee an instrument
accepting such appointment, and thereupon the resignation or removal of the
retiring Trustee shall become effective and such successor Trustee, without any
further act, deed or conveyance, shall become vested with all the rights,
powers, trusts and duties of the retiring Trustee; but, on request of the
Company or the successor Trustee, such retiring Trustee shall, upon payment of
its charges, execute and deliver

                                       49
<PAGE>   56
an instrument transferring to such successor Trustee all the rights, powers and
trusts of the retiring Trustee and shall duly assign, transfer and deliver to
such successor Trustee all property and money held by such retiring Trustee
hereunder. Upon request of any such successor Trustee, the Company shall execute
any and all instruments for more fully and certainly vesting in and confirming
to such successor Trustee all such rights, powers and trusts.

                  No successor Trustee shall accept its appointment unless at
the time of such acceptance such successor Trustee shall be qualified and
eligible under this Article.

SECTION 610.  Merger, Conversion, Consolidation or Succession to Business.

                  Any corporation into which the Trustee may be merged or
converted or with which it may be consolidated, or any corporation resulting
from any merger, conversion or consolidation to which the Trustee shall be a
party, or any corporation succeeding to all or substantially all of the
corporate trust business of the Trustee, shall be the successor of the Trustee
hereunder (provided such corporation shall be otherwise qualified and eligible
under this Article), without the execution or filing of any paper or any further
act on the part of any of the parties hereto. In case any Notes shall have been
authenticated, but not delivered, by the Trustee then in office, any successor
by merger, conversion or consolidation to such authenticating Trustee may adopt
such authentication and deliver the Notes so authenticated with the same effect
as if such successor Trustee had itself authenticated such Notes. In case at
that time any of the Notes shall not have been authenticated, any successor
Trustee may authenticate such Notes either in the name of any predecessor
hereunder or in the name of the successor Trustee. In all such cases such
certificates shall have the full force and effect which this Indenture provides
for the certificate of authentication of the Trustee shall have; provided,
however, that the right to adopt the certificate of authentication of any
predecessor Trustee or to authenticate Notes in the name of any predecessor
Trustee shall apply only to its successor or successors by merger, conversion or
consolidation.

                                  ARTICLE SEVEN

                          HOLDERS LISTS AND REPORTS BY
                               TRUSTEE AND COMPANY

SECTION 701.  Disclosure of Names and Addresses of Holders.

                  Every Holder of Notes, by receiving and holding the same,
agrees with the Company and the Trustee that none of the Company or the Trustee
or any agent of either of them shall be held accountable by reason of the
disclosure of any such information as to the names and addresses of the Holders
in accordance with TIA Section 312, regardless of the source from which such
information was derived, and that the Trustee shall not be held accountable by
reason of mailing any material pursuant to a request made under TIA Section
312(b).

                                       50
<PAGE>   57
SECTION 702.  Reports by Trustee.

                  Within 60 days after February 15 of each year commencing with
the first February 15 after the first issuance of Notes, the Trustee shall
transmit to the Holders, in the manner and to the extent provided in TIA Section
313(c), a brief report dated as of such February 15 if required by TIA Section
313(a).

SECTION 703.  Reports by Company.

                  The Company shall:

                  (1)      file with the Trustee, within 15 days after the
         Company is required to file the same with the Commission, copies of the
         annual reports and of the information, documents and other reports (or
         copies of such portions of any of the foregoing as the Commission may
         from time to time by rules and regulations prescribe) which the Company
         may be required to file with the Commission pursuant to Section 13 or
         Section 15(d) of the Exchange Act; or, if the Company is not required
         to file information, documents or reports pursuant to either of said
         Sections, then it shall file with the Trustee and the Commission, in
         accordance with rules and regulations prescribed from time to time by
         the Commission, such of the supplementary and periodic information,
         documents and reports which may be required pursuant to Section 13 of
         the Exchange Act in respect of a security listed and registered on a
         national securities exchange as may be prescribed from time to time in
         such rules and regulations;

                  (2)      file with the Trustee and the Commission, in
         accordance with rules and regulations prescribed from time to time by
         the Commission, such additional information, documents and reports with
         respect to compliance by the Company with the conditions and covenants
         of this Indenture as may be required from time to time by such rules
         and regulations; and

                  (3)      transmit by mail to all Holders, in the manner and to
         the extent provided in TIA Section 313(c), within 30 days after the
         filing thereof with the Trustee, such summaries of any information,
         documents and reports required to be filed by the Company pursuant to
         paragraphs (1) and (2) of this Section as may be required by rules and
         regulations prescribed from time to time by the Commission.

                                  ARTICLE EIGHT

                       CONSOLIDATION, MERGER, CONVEYANCE,
                                TRANSFER OR LEASE

SECTION 801.  Company May Consolidate, Etc., Only on Certain Terms.

                                       51
<PAGE>   58

                  The Company shall not consolidate with, or merge with or into,
or sell, convey, transfer, lease or otherwise dispose of all or substantially
all of its property and assets (as an entirety or substantially as an entirety
in one transaction or a series of related transactions) to, any Person or permit
any Person to merge with or into the Company and the Company shall not permit
any of its Restricted Subsidiaries to enter into any such transaction or series
of transactions if such transaction or series of transactions, in the aggregate,
would result in the sale, assignment, conveyance, transfer, lease or other
disposition of all or substantially all of the properties and assets of the
Company or the Company and its Restricted Subsidiaries, taken as a whole, to any
other Person or Persons, unless:

                  (1)      either (A) the Company shall be the continuing
         Person, (B) the Person (if other than the Company) formed by such
         consolidation or into which the Company is merged or that acquired or
         leased such property and assets of the Company (i) shall be a
         corporation organized and validly existing under the laws of the United
         States of America or any jurisdiction thereof and (ii) shall expressly
         assume, by an indenture supplemental hereto, duly executed and
         delivered to the Trustee, all of the obligations of the Company with
         respect to all the Notes and under this Indenture or (C) in the case of
         any such transaction or series of transactions entered into by any
         Restricted Subsidiary, the Person into which the Restricted Subsidiary
         is merged is another Restricted Subsidiary;

                  (2)      immediately after giving effect to such transaction
         on a pro forma basis, no Default or Event of Default shall have
         occurred and be continuing;

                  (3)      immediately after giving effect to such transaction
         on a pro forma basis, the Company, or any Person becoming the successor
         obligor of the Notes, shall have a Consolidated Net Worth equal to or
         greater than the Consolidated Net Worth of the Company immediately
         prior to such transaction;

                  (4)      immediately after giving effect to such transaction
         on a pro forma basis, the Company, or any Person becoming the successor
         obligor of the Notes, as the case may be, could Incur at least $1.00 of
         Indebtedness under paragraph (a) of Section 1011; and

                  (5)      the Company delivers to the Trustee an Officer's
         Certificate (attaching the arithmetic computations to demonstrate
         compliance with clauses (3) and (4) above) and an Opinion of Counsel,
         each stating that such consolidation, merger or transfer and such
         supplemental indenture complies with this Article and that all
         conditions precedent herein provided for relating to such transaction
         have been complied with;

provided, however, that clauses (3) and (4) above shall not apply if, in the
good faith determination of the Board of Directors of the Company, whose
determination shall be evidenced by a Board Resolution, the principal purpose of
such transaction is to change the state of incorporation of the Company; and
provided further that any such transaction shall not have as one of its purposes
the evasion of the foregoing limitations.

                                       52
<PAGE>   59
SECTION 802.  Successor Substituted.

                  Upon any consolidation of the Company with or merger of the
Company with or into any other Person or any conveyance, transfer or lease of
the properties and assets of the Company substantially as an entirety to any
Person in accordance with Section 801, the successor Person formed by such
consolidation or into which the Company is merged or to which such conveyance,
transfer or lease is made shall succeed to, and be substituted for, and may
exercise every right and power of, the Company under this Indenture with the
same effect as if such successor Person had been named as the Company herein,
and in the event of any such conveyance or transfer, the Company (which term
shall for this purpose mean the Person named as the "Company" in the first
paragraph of this Indenture or any successor Person which shall theretofore
become such in the manner described in Section 801), except in the case of a
lease, shall be discharged of all obligations and covenants under this Indenture
and the Notes and may be dissolved and liquidated.

SECTION 803.  Notes to Be Secured in Certain Events.

                  If, upon any such consolidation of the Company with, or merger
of the Company into, any other corporation, or upon any conveyance, lease or
transfer of the property of the Company substantially as an entirety to any
other Person, any property or assets of the Company would thereupon become
subject to any Lien, then unless such Lien could be created pursuant to Section
1016 without equally and ratably securing the Notes, the Company, prior to or
simultaneously with such consolidation, merger, conveyance, lease or transfer,
will, as to such property or assets, secure the Notes Outstanding (together
with, if the Company shall so determine any other Indebtedness of the Company
now existing or hereinafter created which is not subordinate in right of payment
to the Notes) equally and ratably with (or prior to) the Indebtedness which upon
such consolidation, merger, conveyance, lease or transfer is to become secured
as to such property or assets by such Lien, or shall cause such Notes to be so
secured.

                                  ARTICLE NINE

                             SUPPLEMENTAL INDENTURES

SECTION 901.  Supplemental Indentures Without Consent of Holders.

                  Without the consent of any Holders, the Company, when
authorized by a Board Resolution, and the Trustee, at any time and from time to
time, may enter into one or more indentures supplemental hereto, in form
satisfactory to the Trustee, for any of the following purposes:

                  (1)      to evidence the succession of another Person to the
         Company and the assumption by any such successor of the covenants of
         the Company contained herein and in the Notes; or

                                       53
<PAGE>   60
                  (2)      to add to the covenants of the Company for the
         benefit of the Holders or to surrender any right or power herein
         conferred upon the Company; or

                  (3)      to add any additional Events of Default; or

                  (4)      to evidence and provide for the acceptance of
         appointment hereunder by a successor Trustee pursuant to the
         requirements of Section 609; or

                  (5)      to cure any ambiguity, to correct or supplement any
         provision herein which may be inconsistent with any other provision
         herein, or to make any other provisions with respect to matters or
         questions arising under this Indenture; provided that such action shall
         not adversely affect the interests of the Holders in any material
         respect; or

                  (6)      to secure the Notes pursuant to the requirements of
         Section 803 or Section 1016 or otherwise.

SECTION 902.  Supplemental Indentures with Consent of Holders.

                  With the consent of the Holders of not less than a majority in
aggregate principal amount of the Outstanding Notes, by Act of said Holders
delivered to the Company and the Trustee, the Company, when authorized by a
Board Resolution, and the Trustee may enter into an indenture or indentures
supplemental hereto for the purpose of adding any provisions to or changing in
any manner or eliminating any of the provisions of this Indenture or of
modifying in any manner the rights of the Holders under this Indenture;
provided, however, that no such supplemental indenture shall, without the
consent of the Holder of each Outstanding Note affected thereby:

                  (i)      change the Stated Maturity of the principal of, or
         any installment of interest on, any Note;

                  (ii)     reduce the principal amount of, or premium, if any,
         or interest on any Note or extend the time for payment of interest on,
         or alter the redemption provisions of, any Note;

                  (iii)    change the place or currency of payment of principal
         of, or premium, if any, or interest on any Note;

                  (iv)     impair the right of any Holder to receive payment of,
         principal of and interest on such Holder's Notes on or after the due
         dates therefor or to institute suit for the enforcement of any payment
         on or after the Stated Maturity (or, in the case of a redemption, on or
         after the Redemption Date) of any Note;

                                       54
<PAGE>   61

                  (v)      reduce the percentage of Outstanding Notes the
         consent of whose Holders is necessary to modify, amend, waive,
         supplement or consent to take any action under this Indenture or the
         Notes;

                  (vi)     waive a default in the payment of principal of,
         premium, if any, or accrued and unpaid interest on the Notes;

                  (vii)    reduce or change the rate or time for payment of
         interest on the Notes;

                  (viii)   [Reserved]

                  (ix)     modify any provisions of any Guarantees in a manner
         adverse to the Holders; or

                  (x)      modify any provisions of this Section 902 or Sections
         513 and 1022, except to increase any such percentage or to provide that
         certain other provisions of this Indenture cannot be modified or waived
         without the consent of the Holder of each Outstanding Note affected
         thereby.

                  It shall not be necessary for any Act of Holders under this
Section to approve the particular form of any proposed supplemental indenture,
but it shall be sufficient if such Act shall approve the substance thereof.

SECTION 903.  Execution of Supplemental Indentures.

                  In executing, or accepting the additional trusts created by,
any supplemental indenture permitted by this Article or the modifications
thereby of the trusts created by this Indenture, the Trustee shall be entitled
to receive, and shall be fully protected in relying upon, an Opinion of Counsel
stating that the execution of such supplemental indenture is authorized or
permitted by this Indenture. The Trustee may, but shall not be obligated to,
enter into any such supplemental indenture which affects the Trustees own
rights, duties or immunities under this Indenture or otherwise.

SECTION 904.  Effect of Supplemental Indentures.

                  Upon the execution of any supplemental indenture under this
Article, this Indenture shall be modified in accordance therewith, and such
supplemental indenture shall form a part of this Indenture for all purposes; and
every Holder of Notes theretofore or thereafter authenticated and delivered
hereunder shall be bound thereby.

SECTION 905.  Conformity with Trust Indenture Act.

                  Every supplemental indenture executed pursuant to the Article
shall conform to the requirements of the Trust Indenture Act as then in effect.

                                       55
<PAGE>   62

SECTION 906.  Reference in Notes to Supplemental Indentures.

                  Notes authenticated and delivered after the execution of any
supplemental indenture pursuant to this Article may, and shall if required by
the Trustee, bear a notation in form approved by the Trustee as to any matter
provided for in such supplemental indenture. If the Company shall so determine,
new Notes so modified as to conform, in the opinion of the Trustee and the
Company, to any such supplemental indenture may be prepared and executed by the
Company and upon Company Order authenticated and delivered by the Trustee in
exchange for Outstanding Notes.

SECTION 907.  Notice of Supplemental Indentures.

         Promptly after the execution by the Company and the Trustee of any
supplemental indenture pursuant to the provisions of Section 902, the Company
shall give notice thereof to the Holders of each Outstanding Note affected
thereby, in the manner provided for in Section 106, setting forth in general
terms the substance of such supplemental indenture.

                                   ARTICLE TEN

                                    COVENANTS

SECTION 1001.  Payment of Principal, Premium, if Any, and Interest.

                  The Company covenants and agrees for the benefit of the
Holders that it shall duly and punctually pay the principal of (and premium, if
any) and interest on the Notes in accordance with the terms of the Notes and
this Indenture.

SECTION 1002.  Maintenance of Office or Agency.

                  The Company shall maintain in The City of New York, an office
or agency where Notes may be surrendered for registration of transfer or
exchange and where notices and demands to or upon the Company in respect of the
Notes and this Indenture may be served. The office of the Trustee located at 40
Broad Street, Suite 550, New York, New York 10004 shall be such office or agency
of the Company, unless the Company shall designate and maintain some other
office or agency for one or more of such purposes. In addition, the Company
shall maintain an office or agency where the Notes may be presented or
surrendered for payment (which shall be the Corporate Trust Office of the
Trustee, unless the Company shall designate and maintain some other office or
agency for one or more such purposes). The Company shall give prompt written
notice to the Trustee of any change in the location of any such office or
agency. If at any time the Company shall fail to maintain any such required
office or agency or shall fail to furnish the Trustee with the address thereof,
such presentations, surrenders, notices and demands may be made or served at the
Corporate Trust Office of the Trustee, and the Company hereby appoints the
Trustee as its agent to receive all such presentations, surrenders, notices and
demands.

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<PAGE>   63

                  The Company may also from time to time designate one or more
other offices or agencies where the Notes may be presented or surrendered for
any or all such purposes and may from time to time rescind any such designation;
provided, however, that no such designation or rescission shall in any manner
relieve the Company of its obligation to maintain an office or agency in The
City of New York for such purposes. The Company shall give prompt written notice
to the Trustee of any such designation or rescission and any change in the
location of any such other office or agency.

SECTION 1003.  Money for Note Payments to Be Held in Trust.

                  If the Company shall at any time act as its own Paying Agent,
it shall, on or before each due date of the principal of (or premium, if any) or
interest on any of the Notes, segregate and hold in trust for the benefit of the
Persons entitled thereto a sum sufficient to pay the principal of (or premium,
if any) or interest so becoming due until such sums shall be paid to such
Persons or otherwise disposed of as herein provided and shall promptly notify
the Trustee of its action or failure so to act.

                  Whenever the Company shall have one or more Paying Agents for
the Notes, it shall, on or before each due date of the principal of (or premium,
if any) or interest on any Notes, deposit with a Paying Agent a sum sufficient
to pay the principal (and premium, if any) or interest so becoming due, such sum
to be held in trust for the benefit of the Persons entitled to such principal,
premium or interest, and (unless such Paying Agent is the Trustee) the Company
shall promptly notify the Trustee of such action or any failure so to act.

                  The Company shall cause each Paying Agent (other than the
Trustee) to execute and deliver to the Trustee an instrument in which such
Paying Agent shall agree with the Trustee, subject to the provisions of this
Section 1003, that such Paying Agent shall:

                  (1)      hold all sums held by it for the payment of the
         principal of (and premium, if any) or interest on Notes in trust for
         the benefit of the Persons entitled thereto until such sums shall be
         paid to such Persons or otherwise disposed of as herein provided;

                  (2)      give the Trustee notice of any default by the Company
         (or any other obligor upon the Notes) in the making of any payment of
         principal (and premium, if any) or interest on the Notes; and

                  (3)      at any time during the continuance of any such
         default, upon the written request of the Trustee, forthwith pay to the
         Trustee all sums so held in trust by such Paying Agent.

                  The Company may at any time, for the purpose of obtaining the
satisfaction and discharge of this Indenture or for any other purpose, pay, or
by Company Order direct any Paying Agent to pay, to the Trustee all sums held in
trust by the Company or such Paying Agent, such sums to be held by the Trustee
upon the same terms as those upon which such sums were

                                       57
<PAGE>   64
held by the Company or such Paying Agent; and, upon such payment by any Paying
Agent to the Trustee, such Paying Agent shall be released from all further
liability with respect to such sums.

                  Any money deposited with the Trustee or any Paying Agent, or
then held by the Company, in trust for the payment of the principal of (or
premium, if any) or interest on any Note and remaining unclaimed for two years
after such principal, premium or interest has become due and payable shall be
paid to the Company on Company Request, or (if then held by the Company) shall
be discharged from such trust; and the Holder shall thereafter, as an unsecured
general creditor, look only to the Company for payment thereof, and all
liability of the Trustee or such Paying Agent with respect to such trust money,
and all liability of the Company as trustee thereof, shall thereupon cease;
provided, however, that the Trustee or such Paying Agent, before being required
to make any such repayment, may at the expense of the Company cause to be
published once, in a newspaper published in the English language, customarily
published on each Business Day and of general circulation in the Borough of
Manhattan, The City of New York, notice that such money remains unclaimed and
that, after a date specified therein, which shall not be less than 30 days from
the date of such publication, any unclaimed balance of such money then remaining
shall be repaid to the Company.

SECTION 1004.  Corporate Existence.

                  Subject to Article Eight, the Company shall do or cause to be
done all things necessary to preserve and keep in full force and effect the
corporate existence (or in the case of its Subsidiaries, existence under the
applicable statutes for non-corporate business entities such as partnerships and
limited liability companies), rights (charter and statutory) and franchises of
the Company and each Subsidiary; provided, however, that the Company shall not
be required to preserve any such right or franchise if the Board of Directors
shall determine that the preservation thereof is no longer desirable in the
conduct of the business of the Company and its Subsidiaries as a whole and that
the loss thereof is not disadvantageous in any material respect to the Holders.

SECTION 1005.  Payment of Taxes and Other Claims.

                  The Company shall pay or discharge or cause to be paid or
discharged, before the same shall become delinquent, (a) all taxes, assessments
and governmental charges levied or imposed upon the Company or any Subsidiary or
upon the income, profits or property of the Company or any Subsidiary and (b)
all lawful claims for labor, materials and supplies, which, if unpaid, might by
law become a lien (other than a Permitted Lien) upon the property of the Company
or any Subsidiary; provided, however, that the Company shall not be required to
pay or discharge or cause to be paid or discharged any such tax, assessment,
charge or claim whose amount, applicability or validity is being contested in
good faith by appropriate proceedings.

SECTION 1006.  Maintenance of Properties.

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<PAGE>   65

                  The Company shall cause all properties owned by the Company or
any Subsidiary or used or held for use in the conduct of its business or the
business of any Subsidiary to be maintained and kept in good condition, repair
and working order and supplied with all necessary equipment and shall cause to
be made all necessary repairs, renewals, replacements, betterments and
improvements thereof, all as in the judgment of the Company may be necessary so
that the business carried on in connection therewith may be properly and
advantageously conducted at all times; provided, however, that nothing in this
Section shall prevent the Company from discontinuing the maintenance of any of
such properties if such discontinuance is, in the judgment of the Company,
desirable in the conduct of its business or the business of any Subsidiary and
not disadvantageous in any material respect to the Holders.

SECTION 1007.  Insurance.

                  The Company shall at all times keep all of its and its
Subsidiaries properties which are of an insurable nature insured with insurers,
believed by the Company to be responsible, against loss or damage to the extent
that property of similar character is usually so insured by corporations
similarly situated and owning like properties.

SECTION 1008.  Statement by Officers as to Default.

                  (a) The Company shall deliver to the Trustee, within 120 days
after the end of each fiscal year, an Officer's Certificate from the principal
executive officer, principal financial officer or principal accounting officer
to the effect that a review has been conducted of the activities of the Company
and the Company's performance under this Indenture, and that the Company has
fulfilled its obligations thereunder or, if there has been a default in the
fulfillment of any such obligation, specifying each such default and the nature
and status thereof. For purposes of this Section 1008(a), such compliance shall
be determined without regard to any period of grace or requirement of notice
under this Indenture.

                  (b) When any Default has occurred and is continuing under this
Indenture, or if the trustee for or the Holder of any other evidence of
Indebtedness of the Company or any Subsidiary gives any notice or takes any
other action with respect to a claimed default (other than with respect to
Indebtedness in the principal amount of less than $1,000,000) shall deliver to
the Trustee by registered or certified mail or by telegram, telex or facsimile
transmission an Officer's Certificate specifying such event, notice or other
action within five Business Days of its occurrence.

SECTION 1009.  Provision of Financial Statements and Reports.

                  (a) The Company shall file on a timely basis with the
Commission, to the extent such filings are accepted by the Commission and
whether or not the Company has a class of securities registered under the
Exchange Act, the annual reports, quarterly reports and other documents that the
Company would be required to file if it were subject to Section 13 or 15 of the
Exchange Act. All such annual reports shall include the geographic segment
financial

                                       59
<PAGE>   66

information contemplated by Item 101(d) of Regulation S-K under the
Securities Act, and all such quarterly reports shall provide the same type of
interim financial information that, as of the date of this Indenture, is the
Company's practice to provide.

                  (b) The Company shall also be required (i) to file with the
Trustee, and provide to each Holder, without cost to such Holder, copies of such
reports and documents within 15 days after the date on which the Company files
such reports and documents with the Commission or the date on which the Company
would be required to file such reports and documents if the Company were so
required and (ii) if filing such reports and documents with the Commission is
not accepted by the Commission or is prohibited under the Exchange Act, to
supply at the Company's cost copies of such reports and documents to any
prospective Holder promptly upon request.

SECTION 1010.  Repurchase of Notes upon Change of Control.

                  (a)      Upon the occurrence of a Change of Control, each
         Holder shall have the right to require the Company to repurchase such
         Holder's Notes in whole or in part (the "Change of Control Offer"), at
         a purchase price (the "Purchase Price") in cash in an amount equal to
         101% of the principal amount thereof, plus accrued and unpaid interest,
         to the date of purchase (subject to the right of Holders of record to
         receive interest on the relevant Interest Payment Date) (the "Change of
         Control Payment") in accordance with the procedures set forth in
         paragraphs (c) and (d) of this Section.

                  (b)      [Reserved]

                  (c)      Within 30 days following any Change of Control, the
         Company shall give to each Holder and the Trustee in the manner
         provided in Section 106 a notice stating:

                  (i)      that a Change of Control has occurred, that the
         Change of Control Offer is being made pursuant to this Section 1010 and
         that all Notes validly tendered will be accepted for payment;

                  (ii)     the circumstances and relevant facts regarding such
         Change of Control (including but not limited to information with
         respect to pro forma historical income, cash flow and capitalization
         after giving effect to such Change of Control);

                  (iii)    the Purchase Price and date of purchase (which shall
         be a Business Day no earlier than 30 days nor later than 60 days from
         the date such notice is mailed) (the "Change of Control Payment Date");

                  (iv)     that any Note not tendered will continue to accrue
         interest pursuant to its terms;

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<PAGE>   67

                  (v)      that, unless the Company defaults in the payment of
         the Change of Control Payment, any Note accepted for payment pursuant
         to the Change of Control Offer shall cease to accrue interest on and
         after the Change of Control Payment Date;

                  (vi)     that Holders electing to have any Note or portion
         thereof purchased pursuant to the Change of Control Offer will be
         required to surrender such Note, together with the form entitled
         "Option of the Holder to Elect Purchase" on the reverse side of such
         Note completed, to the Paying Agent at the address specified in the
         notice prior to the close of business on the Business Day immediately
         preceding the Change of Control Payment Date;

                  (vii)    that Holders shall be entitled to withdraw their
         election if the Paying Agent receives, not later than the close of
         business on the third Business Day immediately preceding the Change of
         Control Payment Date, a telegram, facsimile transmission or letter
         setting forth the name of such Holder, the principal amount of Notes
         delivered for purchase and a statement that such Holder is withdrawing
         his election to have such Notes purchased; and

                  (viii)   that Holders whose Notes are being purchased only in
         part will be issued new Notes equal in principal amount to the
         unpurchased portion of the Notes surrendered; provided that each Note
         purchased and each new Note issued shall be in a principal amount of
         $1,000 or integral multiples thereof.

                  (d)      [Reserved].

                  (e)      On the Change of Control Payment Date, the Company
         shall:

                  (i)      accept for payment Notes or portions thereof tendered
         pursuant to the Change of Control Offer;

                  (ii)     deposit with the Paying Agent money sufficient to pay
         the purchase price of all Notes or portions thereof so accepted; and

                  (iii)    deliver, or cause to be delivered, to the Trustee,
         all Notes or portions thereof so accepted together with an Officer's
         Certificate specifying the Notes or portions thereof accepted for
         payment by the Company. The Paying Agent shall promptly mail, to the
         Holders so accepted, payment in an amount equal to the purchase price,
         and the Trustee shall promptly authenticate and mail to such Holders a
         new Note equal in principal amount to any unpurchased portion of the
         Notes surrendered; provided that each Note purchased and each new Note
         issued shall be in a principal amount of $1,000 or integral multiples
         thereof. The Company shall publicly announce the results of the Change
         of Control Offer on or as soon as practicable after the Change of
         Control Payment Date. For purposes of this Section 1010, the Trustee
         shall act as Paying Agent.

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<PAGE>   68
                  The Company shall not be required to make a Change of Control
Offer upon a Change of Control if a third party makes a Change of Control Offer
in the manner, at the times and otherwise in compliance with the requirements
applicable to a Change of Control Offer made by the Company and purchases all
Notes validly tendered and not withdrawn under such Change of Control Offer.

                  The Company shall comply with Rule 14e-1 under the Exchange
Act and any other securities laws and regulations thereunder to the extent such
laws and regulations are applicable in the event that a Change of Control occurs
and the Company is required to repurchase the Notes under this Section 1010.

SECTION 1011.  Limitation on Indebtedness.

                  (a)      The Company shall not, and shall not permit any of
its Restricted Subsidiaries to, Incur any Indebtedness; provided, however, that
the Company may Incur Indebtedness if immediately thereafter the ratio of (i)
the aggregate principal amount (or accreted value, as the case may be) of
Indebtedness of the Company and its Restricted Subsidiaries on a consolidated
basis outstanding as of the Transaction Date to (ii) the Pro Forma Consolidated
Cash Flow for the preceding two full fiscal quarters multiplied by two,
determined on a pro forma basis as if any such Indebtedness had been Incurred
and the proceeds thereof had been applied at the beginning of such two fiscal
quarters, would be greater than zero and less than 5 to 1.

                  (b)      The foregoing limitations of paragraph (a) of this
covenant will not apply to any of the following Indebtedness ("Permitted
Indebtedness"), each of which shall be given independent effect:

                  (i)      Indebtedness of the Company evidenced by the Notes or
         the FaciliCom Notes;

                  (ii)     Indebtedness of the Company or any Restricted
         Subsidiary outstanding on the Exchange Date;

                  (iii)    Indebtedness of the Company or any Restricted
         Subsidiary under one or more Credit Facilities, in an aggregate
         principal amount at any one time outstanding not to exceed the greater
         of (x) $135.0 million and (y) 80% of Eligible Accounts Receivable at
         any one time outstanding, subject to any permanent reductions required
         by any other terms of this Indenture;

                  (iv)     Indebtedness of the Company or any Restricted
         Subsidiary Incurred to finance the cost (including the cost of design,
         development, construction, acquisition, installation or integration) of
         Telecommunications Assets;

                  (v)      Indebtedness of a Restricted Subsidiary owed to and
         held by the Company or another Restricted Subsidiary, except that (A)
         any transfer of such Indebtedness by the Company or a Restricted
         Subsidiary (other than to the Company or another Restricted Subsidiary)
         or (B) the sale, transfer or other disposition by the Company or any
         Restricted

                                       62
<PAGE>   69

         Subsidiary of Capital Stock of a Restricted Subsidiary which is owed
         Indebtedness of another Restricted Subsidiary shall, in each case, be
         an Incurrence of Indebtedness by such Restricted Subsidiary, subject to
         the other provisions of this Indenture;

                  (vi)     Indebtedness of the Company owed to and held by a
         Restricted Subsidiary which is unsecured and subordinated in right to
         the payment and performance to the obligations of the Company under
         this Indenture and the Notes, except that the limitations of paragraph
         (a) of this Section 1011 shall apply to such Indebtedness at such time
         as (A) any transfer of such Indebtedness by a Restricted Subsidiary
         (other than to another Restricted Subsidiary) and (B) the sale,
         transfer or other disposition by the Company or any Restricted
         Subsidiary of Capital Stock of a Restricted Subsidiary which is owed
         such Indebtedness, subject to other provisions of this Indenture;

                  (vii)    Indebtedness of the Company or a Restricted
         Subsidiary issued in exchange for, or the net proceeds of which are
         used to refinance (whether by amendment, renewal, extension or
         refunding), then outstanding Indebtedness of the Company or a
         Restricted Subsidiary, other than Indebtedness Incurred under clauses
         (iii), (v), (vi), (viii), (ix), (xi) and (xii) of this paragraph, and
         any refinancings thereof in an amount not to exceed the amount so
         refinanced or refunded (plus premiums, accrued interest, and reasonable
         fees and expenses); provided that such new Indebtedness shall only be
         permitted under this clause (vii) if: (A) in case the Notes are
         refinanced in part or the Indebtedness to be refinanced is pari passu
         with the Notes, such new Indebtedness, by its terms or by the terms of
         any agreement or instrument pursuant to which such new Indebtedness is
         issued or remains outstanding, is expressly made pari passu with, or
         subordinate in right of payment to, the remaining Notes, (B) in case
         the Indebtedness to be refinanced is subordinated in right of payment
         to the Notes, such new Indebtedness, by its terms or by the terms of
         any agreement or instrument pursuant to which such new Indebtedness is
         issued or remains outstanding, is expressly made subordinate in right
         of payment to the Notes at least to the extent that the Indebtedness to
         be refinanced is subordinated to the Notes and (C) such new
         Indebtedness, determined as of the date of Incurrence of such new
         Indebtedness, does not mature prior to the Stated Maturity of the
         Indebtedness to be refinanced or refunded, and the Average Life of such
         new Indebtedness is at least equal to the remaining Average Life of the
         Indebtedness to be refinanced or refunded; and provided further that in
         no event may Indebtedness of the Company be refinanced by means of any
         Indebtedness of any Restricted Subsidiary pursuant to this clause
         (vii);

                  (viii)   Indebtedness of (x) the Company not to exceed, at any
         one time outstanding, 2.00 times the Net Cash Proceeds from the
         issuance and sale, other than to a Subsidiary, of Common Stock (other
         than Redeemable Stock) of the Company (less the amount of such proceeds
         used to make Restricted Payments as provided in clause (iii) or (iv) of
         the second paragraph of Section 1012) and (y) the Company or Acquired
         Indebtedness of a Restricted Subsidiary not to exceed, at one time
         outstanding, the Fair

                                       63
<PAGE>   70

         Market Value of any Telecommunications Assets acquired by the Company
         in exchange for Common Stock of the Company issued after the Exchange
         Date; provided, however, that in determining the Fair Market Value of
         any such Telecommunications Assets so acquired, if the estimated Fair
         Market Value of such Telecommunications Assets exceeds (A) $2 million
         (as estimated in good faith by the Board of Directors), then the Fair
         Market Value of such Telecommunications Assets will be determined by a
         majority of the Board of Directors of the Company, which determination
         will be evidenced by a resolution thereof, and (B) $10 million (as
         estimated in good faith by the Board of Directors), then the Company
         shall deliver the Trustee a written appraisal as to the Fair Market
         Value of such Telecommunications Assets prepared by a nationally
         recognized investment banking or public accounting firm (or, if no such
         investment banking or public accounting firm is qualified to prepare
         such an appraisal, by a nationally recognized appraisal firm); and
         provided further that such Indebtedness does not mature prior to the
         Stated Maturity of the Notes and the Average Life of such Indebtedness
         is longer than that of the Notes;

                  (ix)     Indebtedness of the Company or any Restricted
         Subsidiary (A) in respect of performance, surety or appeal bonds or
         letters of credit supporting trade payables, in each case provided in
         the ordinary course of business, (B) under Currency Agreements and
         Interest Rate Agreements covering Indebtedness of the Company; provided
         that such agreements do not increase the Indebtedness of the obligor
         outstanding at any time other than as a result of fluctuations in
         foreign currency exchange rates or interest rates or by reason of fees,
         indemnities and compensation payable thereunder, and (C) arising from
         agreements providing for indemnification, adjustment of purchase price
         or similar obligations including, without limitation, the Company's
         indemnification obligations pursuant to that certain Indemnification
         Agreement dated August 19, 1999, by and between the Company and Clay C.
         Long, Esq., trustee of the World Access Charitable Trust, or from
         Guarantees or letters of credit, surety bonds or performance bonds
         securing any obligations of the Company or any of its Restricted
         Subsidiaries pursuant to such agreements, in any case Incurred in
         connection with the disposition of any business, assets or Restricted
         Subsidiary of the Company (other than Guarantees of Indebtedness
         Incurred by any Person acquiring all or any portion of such business,
         assets or Restricted Subsidiary for the purpose of financing such
         acquisition), in a principal amount not to exceed the gross proceeds
         actually received by the Company or any Restricted Subsidiary in
         connection with such disposition;

                  (x)      Indebtedness of the Company, to the extent that the
         net proceeds thereof are promptly (A) used to repurchase Notes tendered
         in a Change of Control Offer or (B) deposited to defease all of the
         Notes pursuant to Article Thirteen;

                  (xi)     Indebtedness of a Restricted Subsidiary represented
         by a Guarantee of the Notes permitted by and made in accordance with
         Section 1018;

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<PAGE>   71

                  (xii)    Indebtedness of the Company and its Subsidiaries
         existing upon the consummation of the Merger; and

                  (xiii)   Indebtedness of the Company or any Restricted
         Subsidiary in addition to that permitted to be incurred pursuant to
         clauses (i) through (xi) above in an aggregate principal amount not in
         excess of $10 million (or, to the extent not denominated in United
         States dollars, the United States Dollar Equivalent thereof) at any one
         time outstanding.

                  (c)      For purposes of determining any particular amount of
indebtedness under this Section 1011, Guarantees, Liens or obligations with
respect to letters of credit supporting Indebtedness otherwise included in the
determination of such particular amount shall not be included; provided,
however, that the foregoing shall not in any way be deemed to limit the
provisions of Section 1018. For purposes of determining compliance with this
Section 1011, in the event that an item of Indebtedness meets the criteria of
more than one of the types of Indebtedness described in the above clauses, the
Company, in its sole discretion may, at the time of such Incurrence, (i)
classify such item of Indebtedness under and comply with either of paragraph (a)
or (b) of this covenant (or any of such definitions), as applicable, (ii)
classify and divide such item of Indebtedness into more than one of such
paragraphs (or definitions), as applicable, and (iii) elect to comply with such
paragraphs (or definitions), as applicable in any order.

SECTION 1012.  Limitation on Restricted Payments.

                  The Company shall not, and shall not permit any Restricted
Subsidiary to, directly or indirectly, (i) (A) declare or pay any dividend or
make any distribution in respect of the Company's Capital Stock to the holders
thereof (other than dividends or distributions payable solely in shares of
Capital Stock (other than Redeemable Stock) of the Company or in options,
warrants or other rights to acquire such shares of Capital Stock) or (B) declare
or pay any dividend or make any distribution in respect of the Capital Stock of
any Restricted Subsidiary to any Person other than dividends and distributions,
including a distribution payable solely in shares of Capital Stock (other than
Redeemable Stock), payable to the Company or any Restricted Subsidiary or to all
holders of Capital Stock of such Restricted Subsidiary on a pro rata basis; (ii)
purchase, redeem, retire or otherwise acquire for value any shares of Capital
Stock of the Company (including options, warrants or other rights to acquire
such shares of Capital Stock) held by any Person or any shares of Capital Stock
of any Restricted Subsidiary (including options, warrants and other rights to
acquire such shares of Capital Stock) held by any Affiliate of the Company
(other than a Wholly Owned Restricted Subsidiary) or any holder (or any
Affiliate thereof) of 5% or more of the Company's Capital Stock; (iii) make any
voluntary or optional principal payment, or voluntary or optional redemption,
repurchase, defeasance, or other acquisition or retirement for value, of
Indebtedness of the Company that is subordinated in right of payment to the
Notes; or (iv) make any Investment, other than a Permitted Investment, in any
Person (such payments or any other actions described in clauses (i) through (iv)
being collectively "Restricted Payments") if, at the time of, and after giving
effect to, the proposed Restricted Payment:

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                  (A)      a Default or Event of Default shall have occurred and
         be continuing;

                  (B)      the Company could not Incur at least $1.00 of
         Indebtedness under paragraph (a) of Section 1011; and

                  (C)      the aggregate amount of all Restricted Payments
         declared or made from and after the Exchange Date would exceed the sum
         of:

                           (1)      Cumulative Consolidated Cash Flow minus 200%
                  of Cumulative Consolidated Fixed Charges;

                           (2)      100% of the aggregate Net Cash Proceeds from
                  the issue or sale to a Person, which is not a Subsidiary of
                  the Company, of Capital Stock of the Company (other than
                  Redeemable Stock) or of debt securities of the Company which
                  have been converted into or exchanged for such Capital Stock
                  (except to the extent such Net Cash Proceeds are used to Incur
                  new Indebtedness outstanding pursuant to clause (viii) of
                  paragraph (b) of Section 1011); and

                           (3)      to the extent any Permitted Investment that
                  was made after the Exchange Date is sold for cash or otherwise
                  liquidated or repaid for cash, the lesser of (i) the cash
                  return of capital with respect to such Permitted Investment
                  (less the cost of disposition, if any) and (ii) the initial
                  amount of such Permitted Investment.

                  The foregoing provision shall not be violated by reason of:
(i) the payment of any dividend within 60 days after the date of declaration
thereof if, at said date of declaration, such payment would comply with the
foregoing paragraph; (ii) the redemption, repurchase, defeasance or other
acquisition or retirement for value of Indebtedness that is subordinated in
right of payment to the Notes including a premium, if any, and accrued and
unpaid interest with the net proceeds of, or in exchange for, Indebtedness
Incurred under clause (viii) of paragraph (b) of Section 1011; (iii) the
repurchase, redemption or other acquisition of Capital Stock of the Company in
exchange for, or out of the Net Cash Proceeds of a substantially concurrent (A)
capital contribution to the Company or (B) offering of, shares of Capital Stock
(other than Redeemable Stock) of the Company (except to the extent such proceeds
are used to incur new Indebtedness outstanding pursuant to clause (viii) of
paragraph (b) of Section 1011); (iv) the acquisition of Indebtedness of the
Company which is subordinated in right of payment to the Notes in exchange for,
or out of the proceeds of, a substantially concurrent (A) capital contribution
to the Company or (B) offering of, shares of the Capital Stock of the Company
(other than Redeemable Stock) (except to the extent such proceeds are used to
incur new Indebtedness outstanding pursuant to clause (viii) of paragraph (b) of
Section 1011); (v) payments or distributions to dissenting stockholders in
accordance with applicable law, pursuant to or in connection with a
consolidation, merger or transfer of assets that complies with Article Eight;
(vi) the declaration or payment of any dividend or distribution in respect of,
and in accordance with the terms of, the Company's (A) 50,000 outstanding shares
of 4.25%
<PAGE>   73
Cumulative Senior Perpetual Convertible Preferred Stock, Series A, par value
$0.01 per share (the "Senior Preferred Stock"), and, in the event that The 1818
Fund III, L.P. ("The 1818 Fund") exercises its option to purchase up to 20,000
additional shares of Senior Preferred Stock, then such additional shares as well
and (B) 23,174 outstanding shares of 4.25% Cumulative Junior Convertible
Preferred Stock, Series B, par value $0.01 per share (the "Junior Preferred
Stock"); (vii) the conversion of the Senior Preferred Stock, the Junior
Preferred Stock or the Company's Convertible Preferred Stock, Series C, par
value $0.01 per share, into Capital Stock of the Company in accordance with the
terms of such preferred stock; (viii) the exercise of employee or non-employee
options to purchase the Capital Stock of the Company; and (ix) other Restricted
Payments not to exceed $2 million; provided that, except in the case of clause
(i), no Default or Event of Default shall have occurred and be continuing or
occur as a consequence of the actions or payments set forth therein.

                  Each Restricted Payment permitted pursuant to the immediately
preceding paragraph (other than the Restricted Payment referred to in clause
(ii) thereof) and the Net Cash Proceeds from any capital contributions to the
Company or issuance of Capital Stock referred to in clauses (iii) and (iv) of
the immediately preceding paragraph, shall be included in calculating whether
the conditions of clause (C) of the first paragraph of this Section 1012 have
been met with respect to any subsequent Restricted Payments. In the event the
proceeds of an issuance of Capital Stock of the Company are used for the
redemption, repurchase or other acquisition of the Notes, then the Net Cash
Proceeds of such issuance shall be included in clause (C) of the first paragraph
of this Section 1012 only to the extent such proceeds are not used for such
redemption, repurchase or other acquisition of the Notes.

SECTION 1013.     Limitation on Dividend and Other Payment Restrictions
                  Affecting Restricted Subsidiaries.

                  So long as any of the Notes are Outstanding, the Company shall
not, and shall not permit any Restricted Subsidiary to, create or otherwise
cause or suffer to exist or become effective any consensual encumbrance or
restriction of any kind on the ability of any Restricted Subsidiary to do any
one of the following:

                  (i)      pay dividends or make any other distributions
         permitted by applicable law on any Capital Stock of such Restricted
         Subsidiary owned by the Company or any other Restricted Subsidiary;

                  (ii)     pay any Indebtedness owed to the Company or any other
         Restricted Subsidiary;

                  (iii)    make loans or advances to the Company or any other
         Restricted Subsidiary; or

                  (iv)     transfer any of its property or assets (including the
         Capital Stock of any Restricted Subsidiary) to the Company or any other
         Restricted Subsidiary.

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<PAGE>   74

                  The foregoing provisions shall not restrict any encumbrances
or restrictions:

                  (i)      existing on the Exchange Date in this Indenture or
         any other agreements or instruments in effect on the Exchange Date, and
         any extensions, refinancings, renewals or replacements of such
         agreements; provided that the encumbrances and restrictions in any such
         extensions, refinancings, renewals or replacements are no less
         favorable in any material respect to the Holders than those
         encumbrances or restrictions that are then in effect and that are being
         extended, refinanced, renewed or replaced;

                  (ii)     contained in the terms of any Indebtedness or any
         agreement pursuant to which such Indebtedness was issued if the
         encumbrance or restriction applies only in the event of a default with
         respect to a financial covenant contained in such Indebtedness or
         agreement and such encumbrance or restriction is not materially, more
         disadvantageous to the Holders than is customary in comparable
         financing (as determined by the Company) and the Company determines
         that any such encumbrance or restriction will not materially affect the
         Company's ability to make principal or interest payments on the Notes;

                  (iii)    existing under or by reason of applicable law;

                  (iv)     existing with respect to any Person or the property
         or assets of such Person acquired by the Company or any Restricted
         Subsidiary, existing at the time of such acquisition and not incurred
         in contemplation thereof, which encumbrances or restrictions are not
         applicable to any Person or the property or assets of any Person other
         than such Person or the property or assets of such Person so acquired;

                  (v)      in the case of clause (iv) of the first paragraph of
         this Section 1013, (A) that restrict in a customary manner the
         subletting, assignment or transfer of any property or asset that is, or
         is subject to, a lease, purchase mortgage obligation, license,
         conveyance or contract or similar property or asset, (B) existing by
         virtue of any transfer of, agreement to transfer, option or right with
         respect to, or Lien on, any property or assets of the Company or any
         Restricted Subsidiary not otherwise prohibited by this Indenture or (C)
         arising or agreed to in the ordinary course of business, not relating
         to any Indebtedness, and that do not, individually or in the aggregate,
         detract from the value of property or assets of the Company or any
         Restricted Subsidiary in any manner material to the Company or any
         Restricted Subsidiary; or

                  (vi)     with respect to a Restricted Subsidiary and imposed
         pursuant to an agreement that has been entered into for the sale or
         disposition of all or substantially all of the Capital Stock of, or
         property and assets of, such Restricted Subsidiary. Nothing contained
         in this Section 1013 shall prevent the Company or any Restricted
         Subsidiary from (1) creating, incurring, assuming or suffering to exist
         any Liens otherwise permitted in Section 1016 or (2) restricting the
         sale or other disposition of property or assets of the

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         Company or any of its Restricted Subsidiaries that secure Indebtedness
         of the Company or any of its Restricted Subsidiaries.

SECTION 1014.     Limitation on the Issuance and Sale of Capital Stock of
                  Restricted Subsidiaries.

                  The Company shall not, and shall not permit any Restricted
Subsidiary, directly or indirectly, to issue, transfer, distribute, convey,
sell, lease or otherwise dispose of any shares of Capital Stock (including
options, warrants or other rights to purchase shares of such Capital Stock) of
such or any other Restricted Subsidiary (other than to the Company or a Wholly
Owned Restricted Subsidiary or in respect of any director's qualifying shares or
sales of shares of Capital Stock to foreign nationals mandated by applicable law
or pursuant to the exercise of employee or non-employee options to purchase the
Capital Stock of the Company) to any Person unless (A) the Net Cash Proceeds
from such issuance, transfer, conveyance, sale, lease or other disposition are
applied in accordance with Section 1017, (B) immediately after giving effect to
such issuance, transfer, conveyance, sale, lease or other disposition, such
Restricted Subsidiary would no longer constitute a Restricted Subsidiary and (C)
any Investment in such Person remaining after giving effect to such issuance,
transfer, conveyance, sale, lease or other disposition would have been permitted
to be made under Section 1012 if made on the date of such issuance, transfer,
conveyance, sale, lease or other disposition (valued as provided in the
definition of "Investment" contained in Section 101).

SECTION 1015.     Limitation on Transactions with Stockholders and Affiliates.

                  The Company shall not, and shall not permit any Restricted
Subsidiary to, directly or indirectly, enter into, renew or extend any
transaction (including, without limitation, the purchase, sale, lease or
exchange of property or assets, or the rendering of any service) with any holder
(or any Affiliate of such holder) of 5% or more of any class of Capital Stock of
the Company or any Restricted Subsidiary or with any Affiliate of the Company or
any Restricted Subsidiary, unless the following conditions have been met:

                  (i)      such transaction or series of transactions is on
         terms no less favorable to the Company or such Restricted Subsidiary
         than those that could be obtained in a comparable arm's-length
         transaction with a Person that is not such a holder or an Affiliate;

                  (ii)     if such transaction or series of transactions
         involves aggregate consideration in excess of $2 million, then such
         transaction or series of transactions is approved by a majority of the
         Board of Directors of the Company and is evidenced by a resolution
         therein; and

                  (iii)    if such transaction or series of transactions
         involves aggregate consideration in excess of $10 million, then the
         Company or such Restricted

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         Subsidiary shall deliver to the Trustee a written opinion as to the
         fairness to the Company or such Restricted Subsidiary of such
         transaction from a financial point of view from a nationally recognized
         investment banking firm (or, if an investment banking firm is generally
         not qualified to give such an opinion, by a nationally recognized
         appraisal firm or accounting firm).

                  The foregoing limitation does not limit, and will not apply to
(i) any transaction between the Company and any of its Restricted Subsidiaries
or between Restricted Subsidiaries; (ii) the payment of reasonable and customary
regular fees to directors of the Company who are not employees of the Company;
(iii) any Restricted Payments not prohibited by Section 1012; (iv) loans and
advances to officers or employees of the Company and its Subsidiaries not
exceeding at any one time outstanding $1.5 million in the aggregate, made in the
ordinary course of business; (v) arrangements with TMG, Armstrong and/or its
subsidiaries existing on the date of the Original Indenture and listed on
Schedule A attached thereto as such arrangements may be extended or renewed;
provided that the terms of any arrangement altered by any such extension or
renewal may not be altered in a manner adverse to the Company or the Holders of
the Notes; (vi) the issuance of up to 20,000 additional shares of Senior
Preferred Stock to The 1818 Fund pursuant to an option agreement existing on the
date of this Indenture; (vii) the sale to and purchase by the Company from MCI
WorldCom, Inc. and its Affiliates of telecommunications services and equipment
in the ordinary course of business; (viii) the issuance and sale by the Company
of Common Stock whether pursuant to the conversion of the Senior Preferred
Stock, the Junior Preferred Stock or the Company's Convertible Preferred Stock,
Series C, par value $0.01 per share, into Capital Stock of the Company, the
exercise of any employee or non-employee options to purchase the Capital Stock
of the Company; and (ix) the Company's and any of its Restricted Subsidiaries'
arrangements with the World Access Charitable Trust listed on Schedule A
attached hereto as such arrangements exist on the Exchange Date and as such
arrangements may be amended; provided that the terms of any such amendments are
not materially adverse to the Company, any Restricted Subsidiary or the Holders
of the Notes.

SECTION 1016.     Limitation on Liens.

                  The Company shall not, and shall not permit any Restricted
Subsidiary to, directly or indirectly, create, incur, assume or suffer to exist
any Lien (other than Permitted Liens) on any of its assets or properties of any
character (including, without limitation, licenses and trademarks), or any
shares of Capital Stock or Indebtedness of any Restricted Subsidiary, whether
owned at the date of this Indenture or thereafter acquired, or any income,
profits or proceeds therefrom, or assign or otherwise convey any right to
receive income thereof, without making effective provision for all of the Notes
and all other amounts ranking pari passu with the Notes to be directly secured
equally and ratably with the obligation or liability secured by such Lien or, if
such obligation or liability is subordinated to the Notes and other amounts
ranking pari passu with the Notes, without making provision for the Notes and
such other amounts to be directly secured prior to the obligation or liability
secured by such Lien.

SECTION 1017.     Limitation on Asset Sales.

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                  The Company shall not, and shall not permit any Restricted
Subsidiary to, make any Asset Sale unless (i) the Company or the Restricted
Subsidiary, as the case may be, receives consideration at the time of such sale
or other disposition at least equal to the Fair Market Value of the assets sold
or disposed of as determined by the good faith judgment of the Board of
Directors evidenced by a Board Resolution and (ii) at least 80% of the
consideration received for such sale or other disposition consists of cash or
cash equivalents or the assumption of unsubordinated Indebtedness; provided that
any securities, notes or other obligations issued by an Investment Grade Company
with a Total Equity Market Capitalization in excess of $25 billion determined at
the time any commitment to effect any such Asset Sale is entered into which are
received by the Company or the Restricted Subsidiary, as the case may be, and
are converted within 180 days thereof into cash or cash equivalents shall be
deemed to be cash or cash equivalents; provided further that the amount of cash
or cash equivalents realized upon the sale of any such securities, notes or
other obligations must be included within the amount of Net Cash Proceeds for
purposes of clause (i)(B) of the next paragraph.

                  The Company shall, or shall cause the relevant Restricted
Subsidiary to, within 270 days after the date of receipt of the Net Cash
Proceeds from an Asset Sale, (i) (A) apply an amount equal to such Net Cash
Proceeds to permanently repay unsubordinated Indebtedness of the Company or
Indebtedness of any Restricted Subsidiary, in each case owing to a Person other
than the Company or any of its Restricted Subsidiaries, or (B) if the Net Cash
Proceeds from such Asset Sale exceed $15 million, apply an amount equal to such
Net Cash Proceeds to make an offer to purchase (an "Offer to Purchase") from the
Holders on a pro rata basis an aggregate principal amount of Notes equal to such
Net Cash Proceeds, at a purchase price equal to 100% of the principal amount of
the Notes, plus, in each case, accrued and unpaid interest to the date of
purchase and less the product of (a) the Market Value per share of the Common
Stock of the Company and (b) the number of shares (including any portion of a
share) of such Common Stock determined by dividing $50 by the Market Price of
the Common Stock for each $1,000 in principal amount of Notes accepted for
purchase by the Company (the "Offer to Purchase Payment"), provided that the
Company shall not be obligated to make any Offer to Purchase after it has made
one or more Offers to Purchase, which Offer or Offers to Purchase, in the
aggregate, were for an aggregate principal amount of Notes equal to the
aggregate principal amount of Notes issued on the Exchange Date (regardless of
the actual aggregate principal amount of Notes actually tendered in such Offer
or Offers to Purchase), or (C) if the Company has made sufficient Offers to
Purchase such that it has satisfied its obligation as described in the final
proviso to clause (B), invest an equal amount, or the amount not so applied
pursuant to clause (A), in property or assets of a nature or type or that are
used in a business (or in a company having property and assets of a nature or
type, or engaged in a business) similar or related to the nature or type of the
property and assets of, or the business of, the Company and its Restricted
Subsidiaries existing on the date of such investment (as determined in good
faith by the Board of Directors, whose determination shall be conclusive and
evidenced by a Board Resolution) and (ii) apply (no later than the end of the
270-day period referred to above) such excess Net Cash Proceeds (to the extent
not applied pursuant to clause (i)) as provided in the following paragraphs of
this Section 1017. The amount of such Net Cash Proceeds required to be applied
(or to be

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committed to be applied) during such 270-day period referred to above in the
preceding sentence and not applied as so required by the end of such period
shall constitute "Excess Proceeds".

                  If, as of the first day of any calendar month, the aggregate
amount of Excess Proceeds not theretofore subject to an Excess Proceeds Offer
(as defined below) totals at least $10 million, the Company must, not later than
the 30th Business Day thereafter, make an offer (an "Excess Proceeds Offer") to
purchase from the Holders on a pro rata basis an aggregate principal amount of
Notes equal to the Excess Proceeds on such date, at a purchase price equal to
100% of the principal amount of the Notes, plus, in each case, accrued and
unpaid interest to the date of purchase less the product of (a) the Market Value
per share of the Common Stock of the Company and (b) the number of shares
(including any portion of a share) of such Common Stock determined by dividing
$50 by the Market Price of the Common Stock for each $1,000 in principal amount
of Notes accepted for purchase by the Company (the "Excess Proceeds Payment").

                  The Company shall commence an Offer to Purchase or an Excess
Proceeds Offer by mailing a notice to the Trustee and each Holder stating: (i)
that the Offer to Purchase or Excess Proceeds Offer, as applicable, is being
made pursuant to this Section 1017 and that all Notes validly tendered will be
accepted for payment on a pro rata basis; (ii) the purchase price and the date
of purchase (which shall be a Business Day no earlier than 30 days nor later
than 60 days from the date such notice is mailed) (the "Offer Payment Date");
(iii) that any Note not tendered will continue to accrue interest pursuant to
its terms; (iv) that, unless the Company defaults in the payment of the Offer to
Purchase Payment or the Excess Proceeds Payment, as applicable, any Note
accepted for payment pursuant to the Offer to Purchase or the Excess Proceeds
Offer, as applicable, shall cease to accrue interest on and after the applicable
Offer Payment Date; (v) that Holders electing to have a Note purchased pursuant
to the Offer to Purchase or the Excess Proceeds Offer, as applicable, will be
required to surrender the Note, together with the form entitled "Option of the
Holder to Elect Purchase" on the reverse side of the Note completed, to the
Paying Agent at the address specified in the notice prior to the close of
business on the Business Day immediately preceding the applicable Offer Payment
Date; (vi) that Holders shall be entitled to withdraw their election if the
Paying Agent receives, not later than the close of business on the third
Business Day immediately preceding the applicable Offer Payment Date, a
telegram, facsimile transmission or letter setting forth the name of such
Holder, the principal amount of Notes delivered for purchase and a statement
that such Holder is withdrawing his election to have such Notes purchased; and
(vii) that Holders whose Notes are being purchased only in part will be issued
new Notes equal in principal amount to the unpurchased portion of the Notes
surrendered; provided that each Note purchased and each new Note issued shall be
in a principal amount of $1,000 or integral multiples thereof.

                  On the applicable Offer Payment Date, the Company shall (i)
accept for payment on a pro rata basis Notes or portions thereof tendered
pursuant to the Offer to Purchase or the Excess Proceeds Offer, as applicable;
(ii) deposit with the Paying Agent money sufficient to pay the purchase price of
all Notes or portions thereof so accepted; and (iii) deliver, or cause to be
delivered, to the Trustee all Notes or portions thereof so accepted together
with an Officer's

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<PAGE>   79

Certificate specifying the Notes or portions thereof accepted for payment by the
Company. The Paying Agent shall promptly mail to the Holders of Notes so
accepted payment in an amount equal to the purchase price, and the Trustee shall
upon Company Order promptly authenticate and mail to such Holders a new Note
equal in principal amount to any unpurchased portion of the Note surrendered;
provided that each Note purchased and each new Note issued shall be in a
principal amount of $1,000 or integral multiples thereof. With respect to any
Excess Proceeds Offer, to the extent that the aggregate principal amount of
Notes tendered is less than the Excess Proceeds, the Company may use any
remaining Excess Proceeds for general corporate purposes. The Company shall
publicly announce the results of the Excess Proceeds Offer as soon as
practicable after the Offer Payment Date. For purposes of this Section 1017, the
Trustee shall act as the Paying Agent.

                  The Company shall comply with Rule 14e-1 under the Exchange
Act and any other securities laws and regulations thereunder to the extent such
laws and regulations are applicable, in the event that the Company undertakes an
Offer to Purchase or Excess Proceeds Offer under this Section 1017.

SECTION 1018.     Limitation on Issuances of Guarantees of Indebtedness by
                  Restricted Subsidiaries.

                  The Company shall not permit any Restricted Subsidiary,
directly or indirectly, to Guarantee, assume or in any other manner become
liable with respect to any Indebtedness of the Company, other than Indebtedness
under Credit Facilities incurred under clause (iii) of paragraph (b) in Section
1011, unless (i) such Restricted Subsidiary simultaneously executes and delivers
a supplemental indenture to this Indenture providing for a Guarantee of the
Notes on terms substantially similar to the Guarantee of such Indebtedness,
except that if such Indebtedness is by its express terms subordinated in right
of payment to the Notes, any such assumption, Guarantee or other liability of
such Restricted Subsidiary with respect to such Indebtedness shall be
subordinated in right of payment to such Restricted Subsidiary's assumption,
Guarantee or other liability with respect to the Notes substantially to the same
extent as such Indebtedness is subordinated to the Notes and (ii) such
Restricted Subsidiary waives, and shall not in any manner whatsoever claim or
take the benefit or advantage of, any rights of reimbursement, indemnity or
subrogation or any other rights against the Company or any other Restricted
Subsidiary as a result of any payment by such Restricted Subsidiary under its
Guarantee.

                  Notwithstanding the foregoing, any Guarantee by a Restricted
Subsidiary may provide by its terms that it will be automatically and
unconditionally released and discharged upon (i) any sale, exchange or transfer,
to any Person not an Affiliate of the Company, of all of the Company's and each
Restricted Subsidiary's Capital Stock in, or all or substantially all of the
assets of, such Restricted Subsidiary (which sale, exchange or transfer is not
prohibited by this Indenture) or (ii) the release or discharge of the guarantee
which resulted in the creation of such Guarantee, except a discharge or release
by or as a result of payment under such Guarantee.

SECTION 1019.     Business of the Company; Restriction on Transfers of Existing
                  Business.

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                  The Company shall not, and shall not permit any Restricted
Subsidiary to, be principally engaged in any business or activity other than a
Permitted Business. In addition, the Company and any Restricted Subsidiary shall
not be permitted to, directly or indirectly, transfer to any Unrestricted
Subsidiary (i) any of the licenses, material agreements or instruments, permits
or authorizations used in the Permitted Business of the Company and any
Restricted Subsidiary on the Exchange Date or (ii) any material portion of the
"property and equipment" (as such term is used in the Company's consolidated
financial statements) of the Company or any Restricted Subsidiary used in the
licensed service areas of the Company and any Restricted Subsidiary as they
exist on the Exchange Date.

SECTION 1020.     Limitation on Investments in Unrestricted Subsidiaries.

                  The Company shall not make, and shall not permit any of its
Restricted Subsidiaries to make, any Investments in Unrestricted Subsidiaries
if, at the time thereof, the aggregate amount of such Investments together with
any other Restricted Payments made after the Exchange Date would exceed the
amount of Restricted Payments then permitted to be made pursuant to Section
1012. Any Investments in Unrestricted Subsidiaries permitted to be made pursuant
to this covenant (i) shall be treated as the making of a Restricted Payment in
calculating the amount of Restricted Payments made by the Company or a
Subsidiary and (ii) may be made in cash or property (if made in property, the
Fair Market Value thereof as determined by the Board of Directors of the Company
(whose determination shall be conclusive and evidenced by a Board Resolution)
shall be deemed to be the amount of such Investment for the purpose of clause
(i) of this Section 1020).

SECTION 1021.     Limitation on Sale-Leaseback Transactions.

                  The Company shall not, and shall not permit any of its
Restricted Subsidiaries to, enter into any Sale-Leaseback Transaction with
respect to any property of the Company or any of its Restricted Subsidiaries.

                  Notwithstanding the foregoing, the Company may enter into
Sale-Leaseback Transactions; provided, however, that (a) the Attributable Value
of such Sale-Leaseback Transaction shall be deemed to be Indebtedness of the
Company and (b) after giving pro forma effect to any such Sale-Leaseback
Transaction and the foregoing clause (a), other than any Sale- Leaseback
Transaction involving NACT Telecommunications, Inc.'s facility in Provo, Utah,
the Company would be able to incur $1.00 of additional Indebtedness (other than
Permitted Indebtedness) pursuant to Section 1011.

SECTION 1022.     Waiver of Certain Covenants.

                  The Company may omit in any particular instance to comply with
any term, provision or condition set forth in Section 803 or Sections 1007
through 1021, inclusive, if before or after the time for such compliance the
Holders of at least a majority in aggregate principal amount of the Outstanding
Notes, by Act of such Holders, waive such compliance in

                                       74
<PAGE>   81

such instance with such term, provision or condition, but no such waiver shall
extend to or affect such term, provision or condition except to the extent so
expressly waived, and, until such waiver shall become effective, the obligations
of the Company and the duties of the Trustee in respect of any such term,
provision or condition shall remain in full force and effect.

                                 ARTICLE ELEVEN

                               REDEMPTION OF NOTES

SECTION 1101.     Right of Redemption.

                  (a)      The Notes may be redeemed, at the election of the
Company, as a whole or in part, at any time or from time to time, on or after
January 15, 2003, subject to the conditions and at the Redemption Prices
specified in the form of Note, together with accrued and unpaid interest thereon
to the Redemption Date.

                  (b)      Notwithstanding the foregoing, prior to January 15,
2001, the Company may redeem up to 35% of the originally issued aggregate
principal amount of the Notes on one or more occasions with the Net Cash
Proceeds of one or more Public Equity Offerings at a redemption price equal to
110.5% of the aggregate principal amount thereof, plus accrued interest, if any,
thereon to the Redemption Date (subject to the right of Holders of record on the
relevant Regular Record Date to receive interest due on an Interest Payment
Date); provided that, immediately after giving effect to such redemption, at
least 65% of the originally issued aggregate principal amount of the Notes
remains Outstanding; and provided further that notice of such redemptions shall
be given within 60 days of the date of closing of any such Public Equity
Offering.

SECTION 1102.     Applicability of Article.

                  Redemption of Notes at the election of the Company or
otherwise, as permitted or required by any provision of this Indenture, shall be
made in accordance with such provision and this Article.

SECTION 1103.     Election to Redeem; Notice to Trustee.

                  The election of the Company to redeem any Notes pursuant to
Section 1101 shall be evidenced by a Board Resolution. In case of any redemption
at the election of the Company, the Company shall, at least 60 days prior to the
Redemption Date fixed by the Company (unless a shorter notice shall be
satisfactory to the Trustee), notify the Trustee of such Redemption Date and of
the Redemption Price and of the principal amount of Notes to be redeemed and
shall deliver to the Trustee such documentation and records as shall enable the
Trustee to select the Notes to be redeemed pursuant to Section 1104.

                                       75
<PAGE>   82

SECTION 1104.     Selection by Trustee of Notes to Be Redeemed.

                  If less than all the Notes are to be redeemed, the particular
Notes to be redeemed shall be selected not more than 60 days prior to the
Redemption Date by the Trustee, from the Outstanding Notes not previously called
for redemption, in compliance with the requirements of the principal national
securities exchange, if any, on which the Notes are listed or, if the Notes are
not listed on a national securities exchange, on a pro rata basis; provided,
however, that no such partial redemption shall reduce the portion of the
principal amount of a Note not redeemed to less than $1,000.

                  The Trustee shall promptly notify the Company in writing of
the Notes selected for redemption and, in the case of any Notes selected for
partial redemption, the principal amount thereof to be redeemed.

                  For all purposes of this Indenture, unless the context
otherwise requires, all provisions relating to redemption of Notes shall relate,
in the case of any Note redeemed or to be redeemed only in part, to the portion
of the principal amount of such Note which has been or is to be redeemed.

SECTION 1105.     Notice of Redemption.

                  Notice of redemption shall be given in the manner provided for
in Section 106 not less than 30 nor more than 60 days prior to the Redemption
Date, to each Holder of Notes to be redeemed.

                  All notices of redemption shall state:

                  (1)      the Redemption Date;

                  (2)      the Redemption Price and the amount of accrued
         interest to the Redemption Date payable as provided in Section 1107, if
         any;

                  (3)      if less than all Outstanding Notes are to be
         redeemed, the identification (and, in the case of a partial redemption,
         the principal amounts) of the particular Notes to be redeemed;

                  (4)      in case any Note is to be redeemed in part only, the
         notice which relates to such Note shall state that on and after the
         Redemption Date, upon surrender of such Note, the Holder shall receive,
         without charge, a new Note or Notes of authorized denominations for the
         principal amount thereof remaining unredeemed;

                  (5)      that on the Redemption Date the Redemption Price (and
         accrued interest, if any, to the Redemption Date payable as provided in
         Section 1107) will become due and

                                       76
<PAGE>   83

         payable upon each such Note, or the portion thereof, to be redeemed,
         and that interest thereon will cease to accrue on and after said date;
         and

                  (6)      the place or places where such Notes are to be
         surrendered for payment of the Redemption Price and accrued interest,
         if any.

                  Notice of redemption of Notes to be redeemed at the election
of the Company shall be given by the Company or, at the Company's written
request, by the Trustee in the name and at the expense of the Company.

SECTION 1106.     Deposit of Redemption Price.

                  Prior to any Redemption Date, the Company shall deposit with
the Trustee or with a Paying Agent (or, if the Company is acting as its own
Paying Agent, segregate and hold in trust as provided in Section 1003) an amount
of money sufficient to pay the Redemption Price of, and accrued interest on, all
the Notes which are to be redeemed on that date.

SECTION 1107.     Notes Payable on Redemption Date.

                  Notice of redemption having been given as aforesaid, the Notes
so to be redeemed shall, on the Redemption Date, become due and payable at the
Redemption Price therein specified (together with accrued interest, if any, to
the Redemption Date), and from and after such date (unless the Company shall
default in the payment of the Redemption Price and accrued interest) such Notes
shall cease to bear interest. Upon surrender of any such Note for redemption in
accordance with said notice, such Note shall be paid by the Company at the
Redemption Price, together with accrued interest, if any, to the Redemption
Date; provided, however, that installments of interest whose Stated Maturity is
on or prior to the Redemption Date shall be payable to the Holders of such
Notes, or one or more Predecessor Notes, registered as such at the close of
business on the relevant Regular Record Dates according to their terms and the
provisions of Section 307.

                  If any Note called for redemption shall not be so paid upon
surrender thereof for redemption, the principal (and premium, if any) shall,
until paid, bear interest from the Redemption Date at the rate borne by the
Notes.

SECTION 1108.     Notes Redeemed in Part.

                  Any Note which is to be redeemed only in part (pursuant to the
provisions of this Article Eleven) shall be surrendered at the office or agency
of the Company maintained for such purpose pursuant to Section 1002 (with, if
the Company or the Trustee so requires, due endorsement by, or a written
instrument of transfer in form satisfactory to the Company and the Trustee duly
executed by, the Holder thereof or such Holder's attorney duly authorized in
writing), and the Company shall execute, and the Trustee shall upon Company
Order authenticate and deliver to the Holder of such Note without service
charge, a new Note or Notes,

                                       77
<PAGE>   84

of any authorized denomination as requested by such Holder, in aggregate
principal amount equal to and in exchange for the unredeemed portion of the
principal of the Note so surrendered.

                                 ARTICLE TWELVE

                                    SECURITY

SECTION 1201.     Security.

                  (a)      On the Exchange Date, the pro rata portion of the
total amount of the FaciliCom Pledged Securities based on the percentage of the
aggregate principal amount of the FaciliCom Notes exchanged for Notes shall be
released from the FaciliCom Pledge Account and deposited in the Pledge Account
by the Company to be held pursuant to the Pledge Agreement. The Pledged
Securities shall be pledged by the Company to the Trustee for the benefit of the
Holders and shall be held by the Trustee in the Pledge Account pending
disposition pursuant to the Pledge Agreement.

                  (b)      Each Holder, by its acceptance of a Note, consents
and agrees to the terms of the Pledge Agreement (including, without limitation,
the provisions providing for foreclosure and release of the Pledged Securities)
as the same may be in effect or may be amended from time to time in accordance
with its terms, and authorizes and directs the Trustee to enter into the Pledge
Agreement and to perform its respective obligations and exercise its respective
rights thereunder in accordance therewith. The Company shall do or cause to be
done all such acts and things as may be necessary or proper, or as may be
required by the provisions of the Pledge Agreement, to assure and confirm to the
Trustee the security interest in the Pledged Securities contemplated hereby, by
the Pledge Agreement or any part thereof, as from time to time constituted, so
as to render the same available for the security and benefit of this Indenture
and of the Notes secured hereby, according to the intent and purposes herein
expressed. The Company shall take, or shall cause to be taken, any and all
actions reasonably required (and any action reasonably requested by the Trustee)
to cause the Pledge Agreement to create and maintain, as security for the
obligations of the Company under this Indenture and the Notes, valid and
enforceable first priority liens in and on all the Pledged Securities, in favor
of the Trustee, superior to and prior to the rights of third Persons and subject
to no other Liens.

                  (c)      The release of any Pledged Securities pursuant to the
Pledge Agreement will not be deemed to impair the security under this Indenture
in contravention of the provisions hereof if and to the extent the Pledged
Securities are released pursuant to this Indenture and the Pledge Agreement. To
the extent applicable, the Company shall cause TIA Section 314(d) relating to
the release of property or securities from the Lien and security interest of the
Pledge Agreement (other than pursuant to Sections 7(e) and 7(g) thereof) and
relating to the substitution therefor of any property or securities to be
subjected to the Lien and security interest of the Pledge Agreement to be
complied with. Any certificate or opinion required by TIA Section 314(d) may be
made by an officer of the Company, except in cases where TIA Section 314(d)

                                       78
<PAGE>   85

requires that such certificate or opinion be made by an independent Person,
which Person shall be an independent engineer, appraiser or other expert
selected by the Company.

                  (d)      The Trustee, in its sole discretion and without the
consent of the Holders, may, and at the request of the Holders of at least 25%
in aggregate principal amount of Notes then Outstanding shall, on behalf of the
Holders, take all actions it deems necessary or appropriate in order to (i)
enforce any of the terms of the Pledge Agreement and (ii) collect and receive
any and all amounts payable in respect of the obligations of the Company
thereunder. The Trustee shall have power to institute and to maintain such suits
and proceedings as the Trustee may deem expedient to preserve or protect its
interests and the interests of the Holders in the Pledged Securities (including
power to institute and maintain suits or proceedings to restrain the enforcement
of or compliance with any legislative or other governmental enactment, rule or
order that may be unconstitutional or otherwise invalid if the enforcement of,
or compliance with, such enactment, rule or order would impair the security
interest hereunder or be prejudicial to the interests of the Holders or of the
Trustee).

                                ARTICLE THIRTEEN

                       DEFEASANCE AND COVENANT DEFEASANCE

SECTION 1301.     Company's Option to Effect Defeasance or Covenant Defeasance.

                  The Company may, at its option by Board Resolution, at any
time, with respect to the Notes, elect to have either Section 1302 or Section
1303 be applied to all Outstanding Notes upon compliance with the conditions set
forth below in this Article Thirteen.

SECTION 1302.     Defeasance and Discharge.

                  Upon the Company's exercise under Section 1301 of the option
applicable to this Section 1302, the Company shall be deemed to have been
discharged from its obligations with respect to all Outstanding Notes on the
date the conditions set forth in Section 1304 are satisfied (hereinafter,
"defeasance"). For this purpose, such defeasance means that the Company shall be
deemed to have paid and discharged the entire indebtedness represented by the
Outstanding Notes, which shall thereafter be deemed to be "Outstanding" only for
the purposes of Section 1305 and the other Sections of this Indenture referred
to in (A) and (B) below, and to have satisfied all its other obligations under
such Notes and this Indenture insofar as such Notes are concerned (and the
Trustee, at the expense of the Company, shall execute proper instruments
acknowledging the same), except for the following which shall survive until
otherwise terminated or discharged hereunder: (A) the rights of Holders of
Outstanding Notes to receive payments, (solely from monies deposited in trust)
in respect of the principal of, premium, if any, and interest on such Notes when
such payments are due, (B) the Company's obligations with respect to such Notes
under Sections 304, 305, 306, 1002 and 1003, (C) the rights, powers, trusts,
duties and immunities of the Trustee hereunder and (D) this Article Thirteen.
Subject to

                                       79
<PAGE>   86

compliance with this Article Thirteen, the Company may exercise its option under
this Section 1302 notwithstanding the prior exercise of its option under Section
1303 with respect to the Notes.

SECTION 1303.     Covenant Defeasance.

                  Upon the Company's exercise under Section 1301 of the option
applicable to this Section 1303, the Company shall be released from its
obligations under any covenant contained in Section 801(3) and (4) and Section
803 and in Sections 1007 through 1022 with respect to the Outstanding Notes on
and after the date the conditions set forth below are satisfied (hereinafter,
"covenant defeasance"), and the Notes shall thereafter be deemed not to be
"Outstanding" for the purposes of any direction, waiver, consent or declaration
or Act of Holders (and the consequences of any thereof) in connection with such
covenants, but shall continue to be deemed "Outstanding" for all other purposes
hereunder. For this purpose, such covenant defeasance means that, with respect
to the Outstanding Notes, the Company may omit to comply with and shall have no
liability in respect of any term, condition or limitation set forth in any such
covenant, whether directly or indirectly, by reason of any reference elsewhere
herein to any such covenant or by reason of any reference in any such covenant
to any other provision herein or in any other document and such omission to
comply shall not constitute a Default or an Event of Default under Section
501(6), but, except as specified above, the remainder of this Indenture and such
Notes shall be unaffected thereby.

SECTION 1304.     Conditions to Defeasance or Covenant Defeasance.

                  The following shall be the conditions to application of either
Section 1302 or Section 1303 to the Outstanding Notes:

                  (1)      The Company shall irrevocably have deposited or
         caused to be deposited with the Trustee (or another trustee satisfying
         the requirements of Section 607 who shall agree to comply with the
         provisions of this Article Thirteen applicable to it) as trust funds in
         trust for the purpose of making the following payments, specifically
         pledged as security for, and dedicated solely to, the benefit of the
         Holders of such Notes, (A) cash in United States dollars, or (B) U.S.
         Government Obligations or (C) a combination thereof, in such amounts as
         will be sufficient, in the opinion of a nationally recognized firm of
         independent public accountants expressed in a written certification
         thereof delivered to the Trustee, to pay and discharge, and which shall
         be applied by the Trustee (or other qualifying trustee) to pay and
         discharge, (i) the principal of (and premium, if any), and interest on,
         the Outstanding Notes on the Stated Maturity (or Redemption Date, if
         applicable) of such principal (and premium, if any) or installment of
         interest and (ii) any mandatory sinking fund payments or analogous
         payments applicable to the Outstanding Notes on the day on which such
         payments are due and payable in accordance with the terms of this
         Indenture and of such Notes; provided that the Trustee shall have been
         irrevocably instructed to apply such money or the proceeds of such U.S.
         Government Obligations to said payments with respect to the Notes.
         Before such a deposit, the

                                       80
<PAGE>   87

         Company may give to the Trustee, in accordance with Section 1103
         hereof, a notice of its election to redeem all of the Outstanding Notes
         at a future date in accordance with Article Eleven hereof, which notice
         shall be irrevocable. Such irrevocable redemption notice, if given,
         shall be given effect in applying the foregoing. For this purpose,
         "U.S. Government Obligations" means securities that are (x) direct
         obligations of the United States of America for the timely payment of
         which its full faith and credit is pledged or (y) obligations of a
         Person controlled or supervised by and acting as an agency or
         instrumentality of the United States of America the timely payment of
         which is unconditionally guaranteed as a full faith and credit
         obligation by the United States of America, which, in either case, are
         not callable or redeemable at the option of the issuer thereof, and
         shall also include a depository receipt issued by a bank (as defined in
         Section 3(a)(2) of the Securities Act), as custodian with respect to
         any such U.S. Government Obligation or a specific payment of principal
         of or interest on any such U.S. Government Obligation held by such
         custodian for the account of the holder of such depository receipt,
         provided that (except as required by law) such custodian is not
         authorized to make any deduction from the amount payable to the holder
         of such depository receipt from any amount received by the custodian in
         respect of the U.S. Government Obligation or the specific payment of
         principal of or interest on the U.S. Government Obligation evidenced by
         such depository receipt.

                  (2)      No Default or Event of Default with respect to the
         Notes shall have occurred and be continuing on the date of such deposit
         or, insofar as paragraph (9) or (10) of Section 501 hereof is
         concerned, at any time during the period ending on the 123rd day after
         the date of such deposit.

                  (3)      [Reserved]

                  (4)      Such defeasance or covenant defeasance shall not
         result in a breach or violation of, or constitute a default under any
         material agreement or instrument (other than this Indenture) to which
         the Company is a party or by which it is bound.

                  (5)      In the case of an election under Section 1302, the
         Company shall have delivered to the Trustee an Opinion of Counsel
         stating that (x) the Company has received from, or there has been
         published by, the Internal Revenue Service a ruling, or (y) since
         January 15, 1998, there has been a change in the applicable federal
         income tax law, in either case to the effect, and based thereon such
         opinion shall confirm, that Holders will not recognize income, gain or
         loss for federal income tax purposes as a result of such defeasance and
         will be subject to federal income tax on the same amounts, in the same
         manner and at the same times as would have been the case if such
         defeasance had not occurred.

                  (6)      In the case of an election under Section 1303, the
         Company shall have delivered to the Trustee an Opinion of Counsel to
         the effect that the Holders will not recognize income, gain or loss for
         federal income tax purposes as a result of such

                                       81
<PAGE>   88

         covenant defeasance and will be subject to federal income tax on the
         same amounts, in the same manner and at the same times as would have
         been the case if such covenant defeasance had not occurred.

                  (7)      The Company shall have delivered to the Trustee an
         Officer's Certificate and an Opinion of Counsel, each stating that all
         conditions precedent provided for relating to either the defeasance
         under Section 1302 or the covenant defeasance under Section 1303 (as
         the case may be) have been complied with.

SECTION 1305.     Deposited Money and U.S. Government Obligations
                  to Be Held in Trust; Other Miscellaneous Provisions.

                  Subject to the provisions of the last paragraph of Section
1003, all money and U.S. Government Obligations (including the proceeds thereof)
deposited with the Trustee (or other qualifying trustee, collectively for
purposes of this Section 1305, the "Trustee") pursuant to Section 1304 in
respect of the Outstanding Notes shall be held in trust and applied by the
Trustee, in accordance with the provisions of such Notes and this Indenture, to
the payment, either directly or through any Paying Agent (including the Company
acting as its own Paying Agent) as the Trustee may determine, to the Holders of
such Notes of all sums due and to become due thereon in respect of principal
(and premium, if any) and interest, but such money need not be segregated from
other funds except to the extent required by law.

                  The Company shall pay and indemnify the Trustee against any
tax, fee or other charge imposed on or assessed against the U.S. Governmental
Obligations deposited pursuant to Section 1304 or the principal and interest
received in respect thereof other than any such tax, fee or other charge which
by law is for the account of the Holders.

                  Anything in this Article Thirteen to the contrary
notwithstanding, the Trustee shall deliver or pay to the Company from time to
time upon Company Request any money or U.S. Government Obligations held by it as
provided in Section 1304 which, in the opinion of a nationally recognized firm
of independent public accountants expressed in a written certification thereof
delivered to the Trustee, are in excess of the amount thereof which would then
be required to be deposited to effect an equivalent defeasance or covenant
defeasance, as applicable, in accordance with this Article.

SECTION 1306.     Reinstatement.

                  If the Trustee or any Paying Agent is unable to apply any
money in accordance with Section 1305 by reason of any order or judgment of any
court or governmental authority enjoining, restraining or otherwise prohibiting
such application, then the Company's obligations under this Indenture and the
Notes shall be revived and reinstated as though no deposit had occurred pursuant
to Section 1302 or 1303, as the case may be, until such time as the Trustee or
Paying Agent is permitted to apply all such money in accordance with Section
1305; provided, however, that if the Company makes any payment of principal of
(or premium, if any) or interest

                                       82
<PAGE>   89

on any Note following the reinstatement of its obligations, the Company shall be
subrogated to the rights of the Holders of such Notes to receive such payment
from the money held by the Trustee or Paying Agent.

                  This Indenture may be signed in any number of counterparts
each of which so executed shall be deemed to be an original, but all such
counterparts shall together constitute but one and the same Indenture.

                                       83
<PAGE>   90

                  IN WITNESS WHEREOF, the parties hereto have caused this
Indenture to be duly executed as of the day and year first above written.

                                    WORLD ACCESS, INC.

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

                                    FIRST UNION NATIONAL BANK,
                                    Trustee

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

                                       84<PAGE>   1
                                                                   EXHIBIT 10(i)

                BRACKNELL CORPORATION, NATIONWIDE ELECTRIC, INC.
                                       AND
                             THE STATE GROUP LIMITED

                                  as Borrowers

                                     - and -

                        THE FINANCIAL INSTITUTIONS LISTED
                             ON THE SIGNATURE PAGES

                                   as Lenders

                                     - and -

                              ROYAL BANK OF CANADA

                             as Administrative Agent

                                     - and -

                     CANADIAN IMPERIAL BANK OF COMMERCE AND
                            THE TORONTO-DOMINION BANK

                            as Co-Syndication Agents
--------------------------------------------------------------------------------

                  SECOND AMENDED AND RESTATED CREDIT AGREEMENT

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

                            Dated as of July 21, 2000

<PAGE>   2

                  SECOND AMENDED AND RESTATED CREDIT AGREEMENT

         Second Amended and Restated Credit Agreement dated as of July 21, 2000,
among BRACKNELL CORPORATION, NATIONWIDE ELECTRIC, INC. and THE STATE GROUP
LIMITED, as Borrowers, the financial institutions that are listed on the
signature pages, as Lenders, and ROYAL BANK OF CANADA, as Administrative Agent.

         WHEREAS pursuant to a credit agreement dated as of November 19, 1999,
as amended pursuant to the first amending agreement dated as of February 11,
2000 (as amended, the "ORIGINAL CREDIT AGREEMENT") among the Borrowers, the
Lenders and the Administrative Agent, the Lenders made certain credit facilities
available to the Borrowers;

         AND WHEREAS the Original Credit Agreement has been amended and restated
pursuant to an amended and restated credit agreement dated as of February 28,
2000 (the "AMENDED AND RESTATED CREDIT AGREEMENT");

         AND WHEREAS the Borrowers, the Lenders and the Administrative Agent
have determined to further amend and restate the provisions of the Amended and
Restated Credit Agreement as herein provided, with effect as of and from the
date hereof;

         NOW THEREFORE the parties hereto, for good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, hereby covenant
and agree that the Amended and Restated Credit Agreement shall be and is hereby
amended and restated as hereinafter set forth.

                                   ARTICLE 1

                                 INTERPRETATION

         SECTION 1.01.  DEFINED TERMS.

         As used in this Agreement, the following terms have the following
meanings:

         "ACCOMMODATION" means (i) an Advance made by a Lender on the occasion
of any Borrowing, (ii) the creation and purchase of Bankers' Acceptances or the
purchase of completed Drafts by a Domestic Lender or by any other Person on the
occasion of any Drawing, and (iii) the issue of a Documentary Credit by an
Issuing Lender on the occasion of any Issue (each of which is a "TYPE" of
Accommodation).

<PAGE>   3
                                     - 2 -

         "ACCOMMODATION NOTICE" means a Borrowing Notice, a Drawing Notice, an
Issue Notice or an Election Notice, as the case may be.

         "ACCOMMODATIONS OUTSTANDING" means, in relation to a Borrower and any
Lender at any time under a Credit Facility, an amount equal to the sum of (i)
the aggregate principal amount of all outstanding Advances made by the Lender
under such Credit Facility, (ii) if applicable, the aggregate Face Amount of all
outstanding Bankers' Acceptances and completed Drafts which a Lender has
purchased or arranged to have purchased and the aggregate Face Amount of all BA
Equivalent Notes, (iii) the aggregate Face Amount of all Documentary Credits for
which the Lender is contingently liable under such Credit Facility; and (iv) the
aggregate principal amount of all Swingline Advances made by the Swingline
Lender and U.S. Alternate Operating Lender, and in relation to a Borrower and
all Lenders, means the sum of the Accommodations Outstanding to each Lender. In
determining Accommodations Outstanding, the foregoing amounts shall be expressed
in U.S. Dollars and each relevant Canadian Dollar amount shall be converted, for
purposes of such calculation, into its Equivalent U.S. $ Amount, as of the
relevant day.

         "ACQUIRING LENDER" has the meaning specified in Section 2.10(5).

         "ACQUISITION" means, with respect to any Person, any transaction or
series of related transactions for the direct or indirect (i) acquisition of all
or substantially all of the assets or business or division of any other Person,
or (ii) acquisition of any shares, interests, participations or other
equivalents (including partnership interests) of or in any other Person.

         "ACQUISITION OF CONTROL" means the occurrence of any of the following
events: (i) any Person (or any successor to it continuing from any amalgamation,
merger or other reorganization thereof) acquires, directly or indirectly, more
than 25% of the votes attached to Bracknell's securities entitled to vote for
the election of Bracknell's board of directors, (ii) any such Person's designees
represent a majority of Bracknell's board of directors, or (iii) any sale,
lease, exchange or other transfer (in one transaction or series of related
transactions) of all or substantially all of Bracknell's property and assets to
a Person.

         "ADMINISTRATIVE AGENT" means Royal Bank of Canada as Administrative
Agent for the Lenders under this Agreement, and any successor appointed pursuant
to Section 10.09.

         "ADVANCES" means advances made by a Lender under Article 3 and
"ADVANCE" means any one of such advances. Advances are denominated in Canadian
Dollars (a "CANADIAN DOLLAR ADVANCE") or in U.S. Dollars (a "U.S. DOLLAR
ADVANCE"). A Canadian Dollar Advance from a Domestic Lender is

<PAGE>   4
                                     - 3 -

designated a "CANADIAN PRIME RATE ADVANCE" and a U.S. Dollar Advance from a
Domestic Lender may be designated a "LIBOR RATE ADVANCE" or a "U.S. BASE RATE
ADVANCE". A U.S. Dollar Advance from a Foreign Lender may be designated as a
"LIBOR RATE ADVANCE" or a "U.S. PRIME RATE ADVANCE". Canadian Prime Rate
Advances, U.S. Base Rate Advances and U.S. Prime Rate Advances are referred to,
collectively, as "FLOATING RATE ADVANCES". Each of a Libor Rate Advance, a
Canadian Prime Rate Advance, a U.S. Base Rate Advance and U.S. Prime Rate
Advance is a "TYPE" of Advance.

         "AFFILIATE" has the meaning specified in the Business Corporations Act
(Ontario) on the date of this Agreement.

         "AGREEMENT" means this credit agreement and all schedules and
instruments in amendment or confirmation of it; and the expressions "ARTICLE"
and "SECTION" followed by a number mean and refer to the specified Article or
Section of this Agreement.

         "ANNUAL BUSINESS PLAN" means, for any Financial Year, (i) detailed pro
forma balance sheets, income statements and statements of changes in the
Borrowers' and the Restricted Subsidiaries' financial position, prepared in
accordance with GAAP (to the extent applicable), in respect of such Financial
Year and each Financial Quarter therein for the Borrowers' and the Restricted
Subsidiaries' consolidated operations and supported by appropriate explanations,
notes and information, and (ii) detailed pro forma balance sheets, income
statements and statements of changes in the Borrowers' and the Restricted
Subsidiaries' financial position in respect of each of the Financial Years prior
to and including the Financial Year in which the Relevant Repayment Date occurs,
prepared in accordance with GAAP (to the extent applicable) for the Borrowers'
and the Restricted Subsidiaries' consolidated operations and supported by
appropriate explanations, notes and information.

         "ANNUALIZED TOTAL COST OF GOODS SOLD" means the "cost of services"
determined on the same basis as set out in the consolidated statements of net
income and retained earnings of Bracknell which form part of Bracknell's annual
audited consolidated financial statements, calculated based on the most recently
completed twelve months and, if a Borrower has made an Acquisition during such
period, calculated on a pro forma basis as if such Acquisition had taken place
on the first day of such period.

         "APPLICABLE FACILITY FEE" means, subject to the following sentences,
the facility fee in basis points per annum set forth in Schedule 6 corresponding
to the ratio of Total Net Debt to Consolidated EBITDA as calculated at the end
of each Financial Quarter. The Applicable Facility Fee from the date of this
Agreement until the date upon which the Administrative Agent has received a
certificate, in accordance with Section 8.01(a), relating to the second
Financial Quarter of the

<PAGE>   5
                                     - 4 -

Financial Year ended October 31, 2000 shall be calculated as if the ratio of
Total Net Debt to Consolidated EBITDA is greater than 3.5:1 and less than 4.0:1.
Subject to the next following sentences, if the Total Net Debt to Consolidated
EBITDA reflected in the certificate relating to the second Financial Quarter of
the Financial Year ended October 31, 2000 is greater than 4.0:1, the Applicable
Facility Fee for the first and second Financial Quarters of the Financial Year
ended October 31, 2000, shall be adjusted and shall be calculated as if such
ratio were 4.0:1 but less than or equal to 4.25:1. Upon the occurrence and
during the continuance of a Default or an Event of Default, the Applicable
Facility Fee shall be the highest fee provided for in Schedule 6. The Applicable
Facility Fee shall be adjusted on the date of calculation of the ratio of Total
Net Debt to Consolidated EBITDA set forth in Section 6 with effect as of the end
of the most recently completed Financial Quarter.

         "APPLICABLE MARGINS" means, subject to the following sentences, the
margins in basis points per annum, set forth in Schedule 6 corresponding to the
ratio of Total Net Debt to Consolidated EBITDA as calculated at the end of each
Financial Quarter. The Applicable Margin from the date of this Agreement until
the date upon which the Administrative Agent has received a certificate, in
accordance with Section 8.01(a), relating to the second Financial Quarter of the
Financial Year ended October 31, 2000 shall be calculated as if the ratio of
Total Net Debt to Consolidated EBITDA is greater than 3.5:1 and less than 4.0:1.
If the Total Net Debt to Consolidated EBITDA reflected in the certificate
relating to the second Financial Quarter of the Financial Year ended October 31,
2000 is greater than 4.0:1, the Applicable Margin shall be adjusted and shall be
calculated as if such ratio will be greater than 4.0:1 but less than or equal to
4.25:1 for the first and second Financial Quarters of the Financial Year ended
October 31, 2000. In respect of (i) Canadian Prime Rate Advances, U.S. Prime
Rate Advances or U.S. Base Rate Advances, the Applicable Margin shall be the
margin referred to in the column "Floating Rate Advances" in Schedule 6; and
(ii) Libor Rate Advances, Drawings or Issues, the Applicable Margin shall be the
margin referred to in the column "Libor Margin\Drawing Fee\Documentary Credit
Fee" in Schedule 6, in each case, appropriately corresponding to the applicable
ratio of Total Net Debt to Consolidated EBITDA.

         "ASSIGNEE" has the meaning specified in Section 11.08(3).

         "BANK ONE" means Bank One, Kentucky, N.A.

         "BANKERS' ACCEPTANCE" has the meaning specified in Section 4.01.

         "BA EQUIVALENT NOTE" has the meaning specified in Section 4.03(3).

         "BA INSTRUMENTS" means, collectively, Bankers' Acceptances, Drafts and
BA Equivalent Notes, and, in the singular, any one of them.

<PAGE>   6
                                     - 5 -

         "BENEFICIARY" means, in respect of any Documentary Credit, the
beneficiary named in the Documentary Credit.

         "BORROWERS" means, at any time, Bracknell, Nationwide and State and
their respective successors and permitted assigns and, in the singular, any one
of them.

         "BORROWERS' ACCOUNTS" means the Borrowers' Canadian Dollar and U.S.
Dollar accounts maintained by the Administrative Agent in Toronto, the
particulars of which shall have been notified by the Administrative Agent to
Bracknell.

         "BORROWERS' MARK-TO-MARKET EXPOSURE" means, on any date, the net amount
expressed in U.S. Dollars that would be payable by the Borrowers or the
Restricted Subsidiaries under all Hedging Agreements on that date if it were an
"Early Termination Date" and the "Transaction" were a "Terminated Transaction"
in accordance with the payment measures provided for in Section 6(e)(i)(3) of
the 1992 ISDA Master Agreement (Multicurrency-Cross Border) as published by the
International Swaps and Derivatives Association, Inc. as amended or replaced
from time to time.

         "BORROWING" means a borrowing consisting of one or more Advances.

         "BORROWING NOTICE" has the meaning specified in Section 3.02(1).

         "BRACKNELL" means Bracknell Corporation, a corporation incorporated
under the laws of Ontario.

         "BRACKNELL LIMITED PARTNERSHIP FACILITY" means the U.S.$115,000,000
term facility made available to Bracknell LP by the Foreign Lenders pursuant to
a credit agreement dated as of July 21, 2000 (as the same may be amended,
supplemented, restated or replaced at any time or from time to time);

         "BRACKNELL LP" means Bracknell Limited Partnership, a limited
partnership formed under the laws of Nevada;

         "BRACKNELL LP EVENT OF DEFAULT" means an event which, with the giving
of notice or passage of time, or both, would constitute a default or event of
default under the Bracknell Limited Partnership Facility;

         "BUILDINGS AND FIXTURES" means all plant, buildings, structures,
erections, improvements, appurtenances and fixtures (including fixed machinery
and fixed equipment) situate on any of the Subject Properties.

<PAGE>   7
                                     - 6 -

         "BUSINESS" means the business of providing electrical, mechanical,
multi-trade and telecommunications contracting and facilities management
services and services incidental thereto.

         "BUSINESS DAY" means any day of the year, other than a Saturday, Sunday
or other day on which banks are required or authorized to close in Toronto,
Ontario and, where used in the context of (i) a Libor Rate Advance, also a day
on which banks are not required or authorized to close in New York City and
dealings are carried on in the London interbank market, and (ii) a U.S. Base
Rate Advance or a U.S. Prime Rate Advance, also a day on which banks are not
required or authorized to close in New York City.

         "CANADIAN ACQUISITION COMMITMENT" has the meaning specified in the
definition of Commitment.

         "CANADIAN ACQUISITION FACILITY" means the reducing term facility to be
made available to Bracknell by the Domestic Lenders under this Agreement for
purposes set out in Section 2.03.

         "CANADIAN DOLLARS" and "CDN. $" each means lawful money of Canada.

         "CANADIAN DOLLAR ADVANCE" has the meaning specified in the definition
of Advance.

         "CANADIAN FACILITIES" means, collectively, the Canadian Term Facility,
the Canadian Acquisition Facility, the Canadian Operating Facility and the
Canadian Swingline Facility.

         "CANADIAN MANDATORY BORROWING" has the meaning specified in Section
3.01(9).

         "CANADIAN OPERATING COMMITMENT" has the meaning specified in the
definition of Commitment.

         "CANADIAN OPERATING FACILITY" means the revolving operating credit
facility to be made available to State and Bracknell by certain Domestic Lenders
under this Agreement for the purposes set out in Section 2.03.

         "CANADIAN PRIME RATE" means, at any time, the greater of (i) the rate
of interest per annum equal to the rate quoted, published and commonly known as
the "prime rate" of the Administrative Agent established at its main office in
Toronto, Ontario as the reference rate of interest in order to determine
interest rates for commercial loans in Canadian Dollars to its Canadian
borrowers, adjusted automatically with each quoted or published change in such
rate, all without the necessity of any notice to a Borrower or any other Person,
and (ii) the sum of (y) the

<PAGE>   8
                                     - 7 -

average rate per annum for Canadian Dollar banker's acceptances having a term of
30 days that appears on the Reuters Screen CDOR Page as of 10:00 a.m. (Toronto
time) on the date of determination, as reported by the Administrative Agent (and
if such screen is not available, any successor or similar service as may be
selected by the Administrative Agent), and (z) .50%.

         "CANADIAN PRIME RATE ADVANCE" has the meaning specified in the
definition of Advance.

         "CANADIAN SWINGLINE COMMITMENT" has the meaning specified in the
definition of Commitment.

         "CANADIAN SWINGLINE FACILITY" means the revolving operating credit
facility to be made available, as a carve-out of the Canadian Operating
Facility, to Bracknell and State by the Swingline Lender under this Agreement
for the purposes set out in Section 2.03.

         "CANADIAN TERM COMMITMENT" has the meaning specified in the definition
of Commitment.

         "CANADIAN TERM FACILITY" means the reducing term facility to be made
available to Bracknell by the Domestic Lenders under this Agreement for the
purposes set out in Section 2.03.

         "CAPITAL EXPENDITURES" means gross expenditures made for the purchase,
lease or acquisition of assets which would be classified as capital assets on a
balance sheet in accordance with GAAP.

         "CAPITALIZATION" means, at any time, the sum of (i) Total Debt, plus
(ii) Consolidated Net Worth.

         "CASH EQUIVALENTS" means any of the following, so long as the same are
maintained in accounts in which the Administrative Agent has a perfected
security interest: (i) securities issued, guaranteed or insured by the
government of Canada or any province, or the United States of America or any
state, and having terms to maturity of not more than one year, and (ii)
certificates of deposit having maturities of not more than one year issued or
guaranteed by a Canadian chartered bank and rated R-1 low (or the then
equivalent grade) or better by Dominion Bond Rating Service.

         "CLOSING DATE" means the date on which this Agreement becomes effective
pursuant to Section 6.01.

         "CODE" means the Internal Revenue Code of 1986 of the United States of
America, as amended from time to time, and any successor statute.

<PAGE>   9
                                     - 8 -

         "COLLATERAL" means any and all property and assets in respect of which
the Administrative Agent or any Lender has a Lien under the Security Documents.

         "COMMERCIAL DEBT" means Debt referred to in paragraph (i) of the
definition of Debt which is provided by one or more commercial banking
institutions to the Borrowers or any of the Restricted Subsidiaries.

         "COMMITMENT" means, at any time, in respect of (i) the Canadian Term
Facility, U.S. $25,000,000 (as reduced pursuant to Article 2, the "CANADIAN TERM
COMMITMENT"); (ii) the Canadian Acquisition Facility, U.S. $5,000,000 (as
reduced pursuant to Article 2, the "CANADIAN ACQUISITION COMMITMENT"); (iii) the
Canadian Operating Facility, U.S. $25,000,000 less the Canadian Swingline
Commitment (which shall be a carve-out of the Canadian Operating Commitment and
a rateable carve-out of each Lender's Canadian Operating Commitment) (as reduced
or increased pursuant to Articles 2 and 3, the "CANADIAN OPERATING Commitment"),
(iv) the Canadian Swingline Facility, U.S. $5,000,000 (as reduced pursuant to
Articles 2 and 3, the "CANADIAN SWINGLINE COMMITMENT"); (v) the U.S. Operating
Facility, U.S. $42,500,000 less the U.S. Alternate Operating Commitment (which
shall be a carve-out of the U.S. Operating Commitment and a rateable carve-out
of each Lender's U.S. Operating Commitment) (as reduced pursuant to Article 2,
the "U.S. OPERATING COMMITMENT"); and (viii) the U.S. Alternate Operating
Facility, U.S. $5,000,000, (as reduced pursuant to Articles 2 and 3, the "U.S.
ALTERNATE OPERATING COMMITMENT") and a "LENDER'S CANADIAN TERM COMMITMENT",
"LENDER'S CANADIAN ACQUISITION COMMITMENT", "LENDER'S U.S. OPERATING
COMMITMENT", "LENDER'S CANADIAN OPERATING COMMITMENT" and "LENDER'S CANADIAN
SWINGLINE COMMITMENT" and "LENDER'S U.S. ALTERNATE OPERATING COMMITMENT") means,
at any time, the relevant amount designated as such and set forth opposite the
Lender's name on the signature pages and a "LENDER'S COMMITMENT" means, at any
time, the total of the amounts set forth opposite a Lender's name on the
signature pages (as reduced or increased pursuant to Articles 2 and 3).

         "COMPLIANCE CERTIFICATE" means a certificate of Bracknell,
substantially in the form of Schedule 7, signed on its behalf by its chief
financial officer or any other officer acceptable to the Administrative Agent.

         "CONSENTING LENDER" has the meaning specified in Section 2.10(3).

         "CONSOLIDATED DEBT SERVICE" means, for any period, the aggregate of (i)
all Consolidated Interest Expense, and (ii) all regularly scheduled principal or
capital lease payments on account of Total Debt, in each case for such period.
Consolidated Debt Service shall be calculated based on Bracknell's reasonable
projections for the four following Financial Quarters.

<PAGE>   10
                                     - 9 -

         "CONSOLIDATED DEPRECIATION AND AMORTIZATION EXPENSE" means, for any
period, depreciation, amortization and other non-cash expenses of the Borrowers
and the Restricted Subsidiaries which reduce Consolidated Net Income for such
period, determined as of such time in accordance with GAAP.

         "CONSOLIDATED EBITDA" means, for any period and without duplication,
Consolidated Net Income increased, to the extent deducted in calculating
Consolidated Net Income, by the sum of (i) Consolidated Interest Expense, (ii)
all income taxes of the Borrowers and the Restricted Subsidiaries paid or
accrued in accordance with GAAP for such period (other than income taxes
attributable to extraordinary, unusual or nonrecurring gains or losses or taxes
attributable to sales or dispositions outside the normal course of business),
(iii) any non-cash items decreasing Consolidated Net Income for such period,
other than extraordinary or nonrecurring losses, and (iv) Consolidated
Depreciation and Amortization Expense, and decreased by (v) any non-cash items
increasing Consolidated Net Income for such period, other than extraordinary or
nonrecurring gains, (vi) all cash payments during such period relating to
non-cash charges which were added back in determining Consolidated EBITDA in any
prior period, all as determined at such time in accordance with GAAP. For
purposes hereof, Consolidated EBITDA shall not include (i) any Consolidated
EBITDA which has been generated from a Person resident in a country which is not
a member of the Organization for Economic Cooperation and Development (other
than the Bahamas or any other country approved by all the Lenders), except as
specifically permitted in connection with a Permitted Acquisition, and (ii) the
Restructuring Charge.

         "CONSOLIDATED INTEREST EXPENSE" means, for any period for the Borrowers
and the Restricted Subsidiaries, the sum of, without duplication, (i) all items
properly classified as interest expense (whether expensed or capitalized) in
accordance with GAAP, (ii) the imputed interest component of any element of
Total Debt (such as capital leases and deferred revenue) which would not be
classified as interest expense pursuant to (i), (iii) the aggregate of all
purchase discounts relating to the sale of accounts receivable in connection
with any asset securitization program, but excluding, to the extent otherwise
included, (iv) any amount which would also qualify as Consolidated Depreciation
and Amortization Expense.

         "CONSOLIDATED NET INCOME" means, for any period, the net income (loss)
of the Borrowers and the Restricted Subsidiaries determined in accordance with
GAAP, provided, however, that there shall be excluded therefrom (i) after-tax
gains or losses from assets sales or abandonments or reserves relating thereto,
(ii) after-tax items classified as extraordinary or nonrecurring losses not
exceeding $15,000,000 in any Financial Year, (iii) after tax items classified as
extraordinary or nonrecurring gains, (iv) the net income of any Person acquired
in a "pooling of interests" transaction accrued prior to the date it becomes a
Restricted Subsidiary or is merged or consolidated with a Borrower or any
Restricted Subsidiary, (v) the net income (but not loss) of any Restricted
Subsidiary to the extent that the

<PAGE>   11
                                     - 10 -

declaration of dividends or Distributions by that Restricted Subsidiary of that
income is restricted by a contract, operation of law or otherwise, (vi) the net
income of any Person, other than a Restricted Subsidiary, except to the extent
of cash dividends or Distributions paid to a Borrower or any of the Restricted
Subsidiaries by such Person, (vii) income or loss attributable to discontinued
operations (including, without limitation, operations disposed of or closed
during the period whether or not the operations were classified as
discontinued), and (viii) in the case of a successor to a Borrower by
consolidation or merger or as a transferee of a Borrower's assets, any earnings
of the successor corporation prior to such consolidation, merger or transfer of
assets.

         "CONSOLIDATED NET WORTH" means, at any time, with respect to the
Borrowers and the Restricted Subsidiaries, the total shareholders' equity
(including stated capital or equivalent account in respect of issued and
outstanding shares, retained earnings and contributed surplus, but excluding
treasury shares and any subscribed but unissued shares) determined at such time
on a consolidated basis in accordance with GAAP.

         "CREDIT DOCUMENTS" means this Agreement, the BA Instruments, the
Security Documents, the Hedging Agreements and all other documents to be
executed and delivered to the Administrative Agent or the Lenders, or both, by
the Borrowers and the Restricted Subsidiaries.

         "CREDIT FACILITIES" means, collectively, the Operating Facilities, the
Canadian Swingline Facility, the Canadian Acquisition Facility and the Canadian
Term Facility and, in the singular, any one of them.

         "DEBT" of any Person means, without duplication, (i) indebtedness for
borrowed money including borrowings of commodities, bankers' acceptances,
letters of credit or letters of guarantee, (ii) indebtedness for the deferred
purchase price of property or services other than for goods and services
purchased in the ordinary course of business and payable in accordance with
customary practice, (iii) indebtedness created or arising under any conditional
sale or other title retention agreement with respect to property acquired by the
Person (even though the rights and remedies of the seller or lender under such
agreement in the event of default are limited to repossession or sale of such
property), (iv) indebtedness of another Person secured by a security interest on
any properties or assets of the Person in question, (v) all current liabilities
of such Person represented by a note, bond, debenture or other evidence of debt,
(vi) all obligations under leases which have been or should be, in accordance
with GAAP, recorded as capital leases, (vii) the aggregate amount at which any
shares in the capital of the Person which are redeemable or retractable at the
option of the holder may be retracted or redeemed, and (viii) all Debt
Guaranteed by the Person; and for greater certainty, shall not include Hedging
Agreements or ordinary trade payables.

<PAGE>   12
                                     - 11 -

         "DEBT GUARANTEED" by any Person means the maximum amount which may be
outstanding at any time of all Debt of the kinds referred to in (i) through
(vii) of the definition of Debt which is directly or indirectly guaranteed by
the Person or which the Person has agreed (contingently or otherwise) to
purchase or otherwise acquire, or in respect of which the Person has otherwise
assured a creditor or other Person against loss.

         "DEFAULT" means an event which, with the giving of notice or passage of
time, or both, would constitute an Event of Default.

         "DISTRIBUTION" means, in respect of any Person, the amount of (i) any
dividend or other distribution on issued shares of such Person, (ii) the
purchase, redemption or retirement amount of any issued shares, warrants or any
other options or rights to acquire shares of the Person redeemed or purchased by
the Person, (iii) any payment made on, under, or in respect of, any Debt (other
than Debt under this Agreement or payments required to be made pursuant to the
provisions of any pension plan of the Person in effect from time to time),
including interest, sinking fund or any like payment, (iv) any payment on
account of any principal, interest or premium on any loans or advances owing at
any time by the Person to any Related Party, or (v) any loan to or guarantee of
the indebtedness of any Related Party.

         "DOCUMENTARY CREDIT" means a standby letter of credit or letter of
guarantee (each of which is a "TYPE" of Documentary Credit) issued or to be
issued by the Issuing Lender for the account of a Borrower pursuant to Article
5.

         "DOMESTIC ISSUING LENDER" means Royal Bank of Canada and its
successors.

         "DOMESTIC LENDER" means a Lender which is not a non-resident of Canada
within the meaning of the Income Tax Act (Canada).

         "DRAFT" means, at any time, (i) a bill of exchange, within the meaning
of the Bills of Exchange Act (Canada), drawn by a Borrower on a Domestic Lender
or any other Person and bearing such distinguishing letters and numbers as the
Domestic Lender or the Person may determine, but which at such time has not been
completed as to the payee or accepted by the Domestic Lender or the other
Person; and (ii) a depository bill within the meaning of the Depository Bills
and Notes Act (Canada).

         "DRAWING" means (i) the creation and purchase of Bankers' Acceptances
by a Domestic Lender or by any other Person pursuant to Article 4, or (ii) the
purchase of completed Drafts by a Domestic Lender or by any other Person
pursuant to Article 4.

<PAGE>   13
                                     - 12 -

         "DRAWING DATE" means any Business Day fixed for a Drawing pursuant to
Section 4.03.

         "DRAWING FEE" means, with respect to each Draft drawn by a Borrower and
purchased by any Person on any Drawing Date, an amount equal to the Applicable
Margin multiplied by the product of (i) a fraction, the numerator of which is
the numbers of days to maturity of such Bankers' Acceptance or Draft, and the
denominator of which is 365; and (ii) the aggregate Face Amount of the Bankers'
Acceptance.

         "DRAWING NOTICE" has the meaning specified in Section 4.03(1).

         "DRAWING PRICE" means, in respect of Bankers' Acceptances or Drafts to
be purchased by a Lender or any other Person, the result obtained by multiplying
(i) the aggregate Face Amount of the Bankers' Acceptances or Drafts, by (ii) the
amount (rounded up or down to the fifth decimal place with .000005 being rounded
up) determined by dividing one by the sum of one plus the product of (x) the
Reference Discount Rate, and (y) a fraction the numerator of which is the number
of days to maturity of the Bankers' Acceptances and the denominator of which is
365.

         "DRAWING PROCEEDS" means, in respect of any Bankers' Acceptance or
Draft to be purchased by a Lender or any other Person, an amount equal to (i)
the Drawing Price, minus (ii) the applicable Drawing Fee.

         "ELECTION NOTICE" has the meaning specified in Section 3.03(3).

         "ENVIRONMENTAL LAWS" means all applicable laws, rules, regulations,
by-laws, orders, judgments, decisions of and agreements with a Governmental
Entity and all other statutory requirements relating to public health or the
protection of the environment and all authorizations, permits, consents,
registrations and approvals issued pursuant to such laws, agreements or
statutory requirements.

         "ENVIRONMENTAL LIABILITIES" means all liabilities imposed by, under or
pursuant to Environmental Laws or which relate to the existence of contaminants
on, under or about the Subject Properties or the ownership or operation of the
Business or any assets related to the Business.

         "EQUIVALENT CDN. $ AMOUNT" means, on any day with respect to any amount
of U.S. Dollars, the amount of Canadian Dollars which would be required to buy
such amount of U.S. Dollars using the spot rate of the Bank of Canada at
approximately 12:00 noon (Toronto time) on the day.

         "EQUIVALENT U.S. $ AMOUNT" means, on any day with respect to any amount
of Canadian Dollars, the amount of U.S. Dollars which would be required to

<PAGE>   14
                                     - 13 -

buy such amount of Canadian Dollars using the spot rate of the Bank of Canada at
approximately 12:00 noon (Toronto time) on the day.

         "ERISA" means the Employee Retirement Income Security Act of 1974 of
the United States of America, as amended from time to time, and any successor
statute.

         "ERISA AFFILIATE" means any trade or business (whether or not
incorporated) that is a member of a group of which any of the Borrowers or any
of their respective Subsidiaries is a member which is treated as a single
employer under Section 414(b) or (c) of the Code or Section 4001 of ERISA.

         "EVENT OF DEFAULT" has the meaning specified in Section 9.1.

         "FACE AMOUNT" means (i) in respect of a BA Instrument, the amount
payable to the holder on its maturity, and (ii) in respect of a Documentary
Credit, the maximum amount which the Issuing Lender is contingently liable to
pay to the Beneficiary.

         "FEDERAL FUNDS RATE" means, for any day, a fluctuating interest rate
per annum equal to the weighted average of the rates on overnight United States
Federal funds transactions with members of the Federal Reserve System arranged
by United States Federal funds brokers, as published for the day (or, if the day
is not a Business Day, for the preceding Business Day) by the Federal Reserve
Bank of New York, or, if such rate is not so published for any day which is a
Business Day, the average of the quotations for the day on such transactions
received by the Administrative Agent from three United States Federal funds
brokers of recognized standing selected by it.

         "FEES" mean the fees payable by the Borrowers under this Agreement.

         "FINANCIAL QUARTER" means a period of three consecutive months ending
on January 31, April 30, July 31 and October 31, as the case may be, of each
year or such other dates as Bracknell may specify from time to time in
accordance with Section 8.01(c)(v).

         "FINANCIAL YEAR" means, in relation to Bracknell or any Restricted
Subsidiary, the financial year commencing on November 1 of each calendar year
and ending on October 31 of the immediately following calendar year or such
other financial years as Bracknell may specify from time to time in accordance
with Section 8.01(c)(v).

         "FLOATING RATE ADVANCES" has the meaning specified in the definition of
Advance.

<PAGE>   15
                                     - 14 -

         "FOREIGN ISSUING LENDER" means Royal Bank of Canada and its successors.

         "FOREIGN LENDER" means a Lender which is either (i) incorporated under
the laws of the United States, any state thereof or the District of Columbia,
(ii) a branch office in the United States of a corporation incorporated under
the laws of a jurisdiction outside the United States, or (iii) a corporation
incorporated under the laws of a jurisdiction outside the United States and,
under the terms of an applicable income tax treaty as in effect on the date
hereof, is exempt from United States federal withholding tax on payments to be
made to it under the Credit Documents.

         "GAAP" means, at any time, accounting principles generally accepted in
Canada as recommended in the Handbook of the Canadian Institute of Chartered
Accountants at the relevant time applied on a consistent basis (except for
changes made with the prior written consent of the Administrative Agent and
approved by Bracknell's independent auditors in accordance with promulgations of
the Canadian Institute of Chartered Accountants).

         "GOODS" means tangible personal property but excluding chattel paper,
documents of title, instruments, money and securities (as these terms are
defined in the Personal Property Security Act (Ontario) from time to time).

         "GOVERNMENTAL ENTITY" means any (i) multinational, federal, provincial,
state, municipal, local or other government, governmental or public department,
central bank, court, commission, board, bureau, agency or instrumentality,
domestic or foreign, (ii) any subdivision or authority of any of the foregoing,
or (iii) any quasi-governmental or private body exercising any regulatory,
expropriation or taxing authority under or for the account of any of the above.

         "HEDGING AGREEMENTS" means (i) currency exchange or interest rate swap
agreements, currency exchange or interest rate cap agreements or currency
exchange or interest rate collar agreements, in any such case between a Borrower
or a Restricted Subsidiary and any other Person, or (ii) any other agreement or
arrangement designed to protect a Borrower or a Restricted Subsidiary against
fluctuations in currency exchange or interest rates and not for speculative
investment, as it may be amended, supplemented, modified or restated from time
to time.

         "INDEMNIFIED PERSON" has the meaning specified in Section 11.06(1).

         "INVESTMENTS" means any advances, loans, guarantees or other extensions
of credit or capital contributions to (by means of transfers of property, money
or assets), or any purchase of any shares, stocks, bonds, notes, debentures or
other securities of, any Person as an investment in, and not as an acquisition
of, any Person.

<PAGE>   16
                                     - 15 -

         "ISSUE" means an issue of a Documentary Credit by an Issuing Lender
pursuant to Article 5.

         "ISSUE DATE" has the meaning specified in Section 5.02(1).

         "ISSUE NOTICE" has the meaning specified in Section 5.02(1).

         "ISSUING LENDER" means (i) in relation to Documentary Credits issued
under the Canadian Operating Facility, Royal Bank of Canada, and (ii) in
relation to Documentary Credits issued under the U.S. Operating Facility, Royal
Bank of Canada, each in their respective capacities as issuers of Documentary
Credits for the account of the Borrowers in accordance with Article 5, and any
successor to them.

         "JOINT VENTURE" means a corporation incorporated under the laws of
Canada, the United States of Canada or the Bahamas (i) in which a Borrower or a
Restricted Subsidiary holds shares or other equity interests but which is not
wholly-owned directly or indirectly by a Borrower or a Restricted Subsidiary,
(ii) which has no Debt which cross-defaults or cross-accelerates to any Debt of
the Borrowers or the Restricted Subsidiaries or in respect of which a Borrower
or a Restricted Subsidiary is contingently liable, and (iii) in respect of which
no Borrower or Restricted Subsidiary has agreed to cause it to maintain or
preserve its financial position or achieve any specified financial or operating
results.

         "JUDICIAL ORDER" has the meaning specified in Section 5.09(1).

         "LEASED PROPERTIES" means, collectively, the real properties forming
the subject matter of the Leases.

         "LEASES" means the material leases, subleases, rights to occupy, and
licences of real property or Buildings and Fixtures, to which any of the
Borrowers or the Restricted Subsidiaries are a party (i) at the date of this
Agreement, as listed and described in Schedule 7.01(j), or (ii) after the date
of this Agreement as notified to the Administrative Agent pursuant to Section
8.01(c), but shall exclude (iii) leases, rights and licences terminated in
accordance with their terms (and not as the result of a default) after the date
of this Agreement and as and from such termination.

         "LENDERS" mean, collectively, the lenders set forth on the signature
pages hereof, any Person who may become a Lender pursuant to Section 11.08 and
their respective successors and assigns, and, in the singular, any of them.

         "LENDER'S CANADIAN ACQUISITION COMMITMENT" has the meaning specified in
the definition of Commitment.

<PAGE>   17
                                     - 16 -

         "LENDER'S CANADIAN OPERATING COMMITMENT" has the meaning specified in
the definition of Commitment.

         "LENDER'S CANADIAN SWINGLINE COMMITMENT" has the meaning specified in
the definition of Commitment.

         "LENDER'S CANADIAN TERM COMMITMENT" has the meaning specified in the
definition of Commitment.

         "LENDER'S U.S. ALTERNATE OPERATING COMMITMENT" has the meaning
specified in the definition of Commitment.

         "LENDER'S U.S. OPERATING COMMITMENT" has the meaning specified in the
definition of Commitment.

         "LIBOR INTEREST PERIOD" means, for each Libor Rate Advance, a period
which commences (i) in the case of the initial Libor Interest Period, on the
date the Advance is made or converted from another Type of Accommodation, and
(ii) in the case of any subsequent Libor Interest Period, on the last day of the
immediately preceding Libor Interest Period, and which ends, in either case, on
the day selected by a Borrower in the applicable Borrowing Notice or Election
Notice. The duration of each Libor Interest Period shall be 1, 2, 3 or 6 months
(or such shorter or longer period as may be approved by the Lenders making Libor
Rate Advances), unless the last day of a Libor Interest Period would otherwise
occur on a day other than a Business Day, in which case the last day of such
Libor Interest Period shall be extended to occur on the next Business Day, or if
such extension would cause the last day of such Libor Interest Period to occur
in the next calendar month, the last day of such Libor Interest Period shall
occur on the preceding Business Day.

         "LIBOR RATE" means, for each Libor Interest Period for each Libor Rate
Advance, the rate of interest per annum which appears on page 3750 of the
Telerate screen at approximately 11:00 a.m. (London time) two Business Days
before the first day of such Libor Interest Period; or if such Telerate screen
is not available, then the rate of interest per annum which appears on the
Reuters screen LIBOR01 page at approximately 11:00 a.m. (London time) two
Business Days before the first day of such Libor Interest Period; or if such
Reuters screen is not available, then the Libor Rate shall be the annual rate of
interest determined by the Administrative Agent as being the rate of interest at
which it would be prepared to offer to leading banks in the London interbank
market for delivery on the first day of the relevant Libor Interest Period for a
period equal to the Libor Interest Period, deposits in U.S. Dollars and amount
comparable to the relevant Libor Rate Advance requested by a Borrower.

         "LIBOR RATE ADVANCE" has the meaning specified in the definition of
Advance.

<PAGE>   18
                                     - 17 -

         "LIEN" means any mortgage, charge, pledge, hypothecation, security
interest, assignment, encumbrance, lien (statutory or otherwise), mechanics'
lien, construction lien, materialmen's lien, charge, title retention agreement
or arrangement, restrictive covenant or other encumbrance of any nature or any
other arrangement or condition that in substance secures payment or performance
of an obligation.

         "MAJORITY LENDERS" means (i) at all times after the occurrence of an
Event of Default and during its continuance, Lenders who, taken together, are
beneficially entitled to at least 66-2/3% of the aggregate Accommodations
Outstanding, and (ii) at all other times, Lenders whose Commitments, taken
together, are at least 66-2/3% of the aggregate amount of the Commitments.

         "MATERIAL ADVERSE EFFECT" means a material adverse effect on the
business, operations, results of operations, prospects, assets, liabilities or
financial condition of the Borrowers and the Restricted Subsidiaries taken as a
whole or a material adverse effect on the ability of the Borrowers to perform
their respective obligations under the Credit Agreement or on the ability of the
Administrative Agent and the Lenders to enforce such obligations.

         "MATERIAL AGREEMENTS" means the agreements listed in Schedule 7.01(u)
and any other agreement, contract or similar instrument to which a Borrower or
any of the Restricted Subsidiaries is a party or to which any of its property or
assets may be subject which account for greater than 5% of the annual
consolidated revenues of any Borrower or for which breach, non-performance,
cancellation, failure to renew, termination, revocation or lapse could
reasonably be expected to have a Material Adverse Effect.

         "MILLENNIUM COMPLIANT" means that the computer systems are capable of
the following functions immediately before, during and after January 1, 2000 (i)
handling date information involving all and any dates before, during and after
January 1, 2000, including, accepting date input (either from an internal or
external source), providing date output and performing date calculations in
whole or in part, (ii) operating accurately without interruption on and in
respect of any and all dates before, during and after January 1, 2000 and
without any change in performance, (iii) responding to and processing any digit
year input (either from an internal or external source) without creating any
ambiguity as to the century, and (iv) receiving, storing, providing and
communicating date output information without creating ambiguity as to the
century.

         "MULTIEMPLOYER PLAN" means a multiemployer plan as defined in Section
4001(a)(3) of ERISA to which a Borrower or any of their respective Subsidiaries
or any ERISA Affiliate is making or accruing an obligation to make contributions
or has made or accrued an obligation to make contributions or otherwise has any
liability.

<PAGE>   19
                                     - 18 -

         "NATIONWIDE" means Nationwide Electric, Inc., a corporation formed
under the laws of Delaware.

         "NATIONWIDE ALTERNATE OPERATING ACCOUNTS" means Nationwide's U.S.
Dollar accounts maintained by the U.S. Alternate Operating Lenders at their
principal office in such city as may be notified to the Administrative Agent,
the particulars of which shall be notified by the U.S. Alternative Operating
Lender to Nationwide.

         "NET PROCEEDS" means, with respect to: (i) the issuance or creation of
any Debt, whether private or public, of any Person, the amount equal to the
aggregate amount received in cash in connection with such issuance or creation
less all reasonable fees (including, without limitation, reasonable legal fees),
commissions and other out-of-pocket expenses incurred or paid for by such Person
in connection with such creation or issuance, (ii) with respect to the issuance
by any Person of any shares, options, warrants or securities convertible into
shares or other securities or of any capital contributions by any Person in such
Person, an amount equal to the aggregate amount received in cash in connection
with such issuance or contribution, and (iii) with respect to asset dispositions
by any Person, an amount equal to the amount received in cash (including any
cash received by way of deferred payment pursuant to a note receivable or other
non-cash consideration but only as and when such cash is received) in connection
with any such disposition less all reasonable fees incurred or paid for by the
Person in connection with the disposition and all sales, goods and services,
value-added or similar taxes incurred in connection with the disposition.

         "NON-CONSENTING LENDER" has the meaning specified in Section 2.10(3).

         "NON-CONSENTING LENDER'S COMMITMENT" has the meaning specified in
Section 2.10(3).

         "NON-RECOURSE SUBSIDIARY" means AOC Canada Ltd., AOC Brown & Root
Canada Ltd., 1341996 Ontario Inc., 1357248 Ontario Inc. and their respective
successors and assigns.

         "OPERATING COMMITMENTS" means, collectively, the Canadian Operating
Commitment, the U.S. Operating Commitment, the U.S. Alternate Operating
Commitment and, in the singular, any one of them.

         "OPERATING FACILITIES" means, collectively, the Canadian Operating
Facility, the U.S. Operating Facility and the U.S. Alternate Operating Facility
and, in the singular, any one of them.

         "ORIGINAL CURRENCY" has the meaning specified in Section 11.12(1).

<PAGE>   20
                                     - 19 -

         "OTHER CURRENCY" has the meaning specified in Section 11.12(1).

         "OWNED PROPERTIES" means, collectively, (i) the land and premises owned
by a Borrower or any Restricted Subsidiary on the date of this Agreement which
are listed on Schedule 7.01(i), and (ii) after the date of this Agreement those
lands and premises notified to the Administrative Agent pursuant to Section
8.01(c), but shall exclude (ii) lands and premises sold or otherwise disposed of
as permitted in this Agreement as and from the date of such sale or
distribution.

         "PARSONS" means Parsons Electric Holdings, Inc., a Delaware
corporation.

         "PARTICIPANT" has the meaning specified in Section 11.08(3).

         "PERMITTED ACQUISITION" shall mean an Acquisition in respect of which
the consent of the Supermajority Lenders or all of the Lenders, as the case may
be, has been obtained in accordance with Section 8.02(j).

         "PERMITTED LIENS" means, in respect of any Person, any one or more of
the following:

(a)      Liens for taxes, assessments or governmental charges or levies which
are not delinquent or the validity of which is being contested at the time by
the Person in good faith by proper legal proceedings if, in the Majority
Lenders' opinion, adequate provision has been made for their payment;

(b)      inchoate or statutory Liens of contractors, subcontractors, mechanics,
workers, suppliers, materialmen, carriers and others in respect of construction,
maintenance, repair or operation of assets of the Person, provided that such
Liens are related to obligations and in respect of which adequate holdbacks are
being maintained as required by applicable law or such Liens are being contested
in good faith by appropriate proceedings and in respect of which there has been
set aside a reserve (segregated to the extent required by GAAP) in an adequate
amount and provided further that such Liens do not materially interfere with the
use of such assets in the operation of the business of the Person;

(c)      easements, rights-of-way, servitudes, restrictions and similar rights
in real property comprised in the assets of the Person or interests therein
granted or reserved to other Persons, provided that such rights do not
materially interfere with the use of such real property in the operation of the
business of the Person;

(d)      title defects or irregularities which are of a minor nature and which
do not materially interfere with the use of the assets subject thereto in the
operation of the business of the Person;

<PAGE>   21
                                     - 20 -

(e)      Liens securing appeal bonds and other similar Liens arising in
connection with court proceedings (including, without limitation, surety bonds,
security for costs of litigation where required by law and letters of credit) or
any other instruments serving a similar purpose;

(f)      attachments, judgments and other similar Liens arising in connection
with court proceedings; provided, however, that the Liens are in existence for
less than 10 days after their creation or the execution or other enforcement of
the Liens is effectively stayed or the claims so secured are being actively
contested in good faith and by proper legal proceedings;

(g)      the reservations, limitations, provisos and conditions, if any,
expressed in any original grant from the Crown of any real property or any
interest therein or in any comparable grant in jurisdictions other than Canada,
provided they do not materially interfere with the use of such real property in
the operation of the business of the Person;

(h)      Liens given to a public utility or any municipality or governmental or
other public authority when required by such utility or other authority in
connection with the operation of the business or the ownership of the assets of
the Person, provided that such Liens do not materially interfere with the use of
such assets in the operation of the business of the Person;

(i)      servicing agreements, development agreements, site plan agreements, and
other agreements with Governmental Entities pertaining to the use or development
of any of the assets of the Person, provided same are complied with and do not
materially interfere with the use of the assets subject thereto in the operation
of the business of the Person including, without limitation, any obligations to
deliver letters of credit and other security as required;

(j)      the right reserved to or vested in any Governmental Entity by any
statutory provision or by the terms of any lease, licence, franchise, grant or
permit of the Person, to terminate any such lease, licence, franchise, grant or
permit, or to require annual or other payments as a condition to the continuance
thereof;

(k)      Liens in favour of the Administrative Agent and the Lenders created by
the Security Documents;

(l)      Purchase Money Mortgages permitted under Section 8.02(a); and

(m)      Liens disclosed in Schedule 8.02(b) but only to the extent such Liens
conform to their description in Schedule 8.02(b), and includes any extension or
renewal thereof provided the amount so secured does not exceed the original
amount secured immediately prior to the extension, renewal or refinancing and
the scope of security creating the Lien is not extended.

<PAGE>   22
                                     - 21 -

         "PERSON" means a natural person, partnership, corporation, joint stock
company, trust, unincorporated association, joint venture or other entity or
Governmental Entity, and pronouns have a similarly extended meaning.

         "PLAN" means an employee benefit plan (other than a Multi-employer
Plan) maintained by a Borrower or any of its Subsidiaries or any ERISA Affiliate
and covered by Title IV of ERISA, Section 302 of ERISA or Section 412 of the
Code.

         "PRIORITY ACCOUNTS PAYABLE" means, at any time, the aggregate amount of
accounts payable due and owing by the Borrowers and the Restricted Subsidiaries
to Subcontractors which rank or are capable of ranking in priority to the
Security pursuant to applicable law including, without limitation, any statutory
Lien or trust.

         "PURCHASE MONEY MORTGAGE" means any security interest charging personal
property acquired by a Borrower or a Restricted Subsidiary, which is granted or
assumed by a Borrower or a Restricted Subsidiary or which arises by operation of
law in favour of the transferor concurrently with and for the purpose of the
acquisition of such property, in each case where (i) the principal amount
secured by the security interest is not in excess of the lesser of (y) the
purchase price (after any post-closing adjustment), or (z) the fair market
value, of the property acquired; and (ii) such security interest extends only to
the property acquired and the proceeds thereof, including any extension, renewal
or refinancing thereof provided the same conditions are satisfied.

         "REFERENCE DISCOUNT RATE" means, in respect of any Bankers' Acceptances
or Drafts to be purchased by a Domestic Lender or any other Person pursuant to
Article 4 by (i) a Schedule I Canadian bank, the average rate for Canadian
Dollar Bankers' Acceptances having a term comparable to such Bankers'
Acceptances and Drafts that appears on the Reuters Screen CDOR Page (or such
other page as is a replacement page for such Bankers' Acceptances) at 10:00 a.m.
(Toronto time); or (ii) by any other Domestic Lender or other Person, the
arithmetic average of the discount rates (calculated on an annual basis and
rounded to the nearest fifth decimal place with .000005 being rounded up) quoted
by each Reference Lender at 10:00 am. (Toronto time) as the discount rate at
which the Reference Lender would purchase on the relevant Drawing Date, its own
Bankers' Acceptances or Drafts having an aggregate Face Amount equal to and with
a term to maturity the same as the Bankers' Acceptances or Drafts to be acquired
by the Lenders or such other Person on the Drawing Date. If such rate is not
available as of such time, then the discount rate in respect of such Bankers'
Acceptances and Drafts shall mean the discount rate quoted by the Administrative
Agent for the purchase, on the relevant Drawing Date, of its own Bankers'
Acceptances or Drafts having an aggregate Face Amount equal to and with a term
to maturity the same as the Bankers' Acceptances or Drafts to be acquired by
such Lender or other Person on such Drawing Date.

<PAGE>   23
                                     - 22 -

         "REFERENCE LENDERS" means, at any time, the Schedule II Canadian
bank(s) parties hereto or any one of them.

         "RELATED PARTY" means, in respect of any Borrower or Restricted
Subsidiary (i) a Person which alone or in combination with others holds a
sufficient number of securities or has contractual rights sufficient to affect
materially the control of the Borrower or Restricted Subsidiary, (ii) a Person
in respect of which a Person referred to in clause (i) alone or in combination
with others holds a sufficient number of securities or has contractual rights
sufficient to affect materially its control, (iii) a Person in respect of which
the Borrower or Restricted Subsidiary alone or in combination with others holds
a sufficient number of securities or has contractual rights sufficient to affect
materially its control, (iv) a Person who beneficially owns, directly or
indirectly, voting securities of the Borrower or Restricted Subsidiary who
exercises control or direction over voting securities of the Borrower or
Restricted Subsidiary or a combination of both carrying more than 10% of the
voting rights attached to all voting securities of the Borrower or Restricted
Subsidiary for the time being outstanding, (v) a director or senior officer of
the Borrower, Restricted Subsidiary or related party of the Borrower or
Restricted Subsidiary, or (vi) an Affiliate of any of the foregoing.

         "RELEVANT REPAYMENT DATE" means, in respect of the repayment of all
Accommodations made under (i) the Canadian Operating Facility and the Canadian
Swingline Facility the date which is 364 days after the date hereof (unless
otherwise extended pursuant to Section 2.10 in which case it will be, with
respect to any Consenting Lender or Acquiring Lender, the date to which they are
extended), (ii) the U.S. Operating Facility and the U.S. Alternate Operating
Facility, the date which is 364 days after the date hereof (unless otherwise
extended pursuant to Section 2.10 in which case it will be, with respect to any
Consenting Lender or Acquiring Lender, the date to which it is extended), and
(iii) the Canadian Term Facility and the Canadian Acquisition Facility, November
12, 2004.

         "RESTRICTED SUBSIDIARIES" means the subsidiaries listed in Schedule
7.01(p) under the heading "Restricted Subsidiaries" and any other Subsidiary
acquired pursuant to, or incorporated for the purposes of, a Permitted
Acquisition which shall from time to time become guarantors of all of the
obligations of a Borrower under this Agreement and the other Credit Documents
and which have delivered to the Administrative Agent a guarantee and security
over all of their property and assets together with an opinion of counsel, all
in form and substance satisfactory to the Administrative Agent.

         "RESTRUCTURING CHARGE" means the Cdn. $11,300,000 restructuring charge
taken by Bracknell in the third Financial Quarter of 1999.

         "REVOLVING FACILITIES" means the Operating Facilities and the Canadian
Swingline Facility.

<PAGE>   24
                                     - 23 -

         "SECURITY" means, at any time, the encumbrances in favour of the
Administrative Agent or the Lenders, or both, in the assets and properties of
the Borrowers and the Restricted Subsidiaries securing their obligations under
this Agreement and the other Credit Documents.

         "SECURITY DOCUMENTS" means the agreements described in Schedule 8 and
any other security granted to the Administrative Agent or the Lenders, or both,
as security for the obligations of the Borrowers and the Restricted Subsidiaries
under this Agreement and the other Credit Documents.

         "SENIOR SUBORDINATED BRIDGE COMMITMENT LETTER" means that certain
commitment letter dated as of February 28, 2000, as amended by a letter
agreement dated May 31, 2000, between Bracknell, as borrower, and TD Securities
(USA) Inc., as lender pursuant to which senior subordinated credit facilities
are to be made available to Bracknell.

         "SENIOR SUBORDINATED BRIDGE LOAN" means the senior subordinated bridge
facility in a maximum principal amount of U.S.$50,000,000 to be made available
to Bracknell or a Restricted Subsidiary pursuant to the terms of the Senior
Subordinated Bridge Commitment Letter.

         "SENIOR NET DEBT" means, at any time, the sum of (i) Debt to the
Lenders incurred pursuant to this Agreement minus (ii) the cash or Cash
Equivalents set forth on the consolidated balance sheet of the Borrowers and the
Restricted Subsidiaries determined in accordance with GAAP plus (iii) any such
cash or Cash Equivalents which are required to be added pursuant to Sections
8.01(c)(viii) and 8.01(t).

         "STATE" means The State Group Limited, a corporation incorporated under
the laws of Ontario.

         "SUBCONTRACTORS" has the meaning specified in Section 8.01(t).

         "SUBJECT PROPERTIES" means collectively, the Owned Properties and the
Leased Properties.

         "SUBORDINATED DEBT" means the principal amount outstanding at any time
of Debt payable by a Borrower or Restricted Subsidiary which (i) is unsecured,
(ii) has covenants and events of default provisions which are not less
favourable to the Borrower or Restricted Subsidiary than the covenants and
events of default provisions in this Agreement, (iii) has no required redemption
provisions and matures after the latest Relevant Repayment Date, and (iv) is
otherwise subordinate and junior in right of payment to the payment of the
Accommodations Outstanding and other amounts payable under this Agreement on
terms and conditions satisfactory to the Majority Lenders.

<PAGE>   25
                                     - 24 -

         "SUBSIDIARY" has the meaning specified in the Business Corporations Act
(Ontario) on the date of this Agreement.

         "SUBSIDIARIES" means the subsidiaries of Bracknell including, without
limitation, those identified as such in Schedule 7.01(p).

         "SUNBELT NOTES" means the interest bearing promissory notes in the
aggregate principal amount of U.S.$21,008,000 (subject to an increase in the
principal amount thereof if paid in shares of Bracknell) made by Parsons and
guaranteed by Bracknell to and in favour of certain selling shareholders in
connection with the acquisition by Parsons of all of the issued and outstanding
shares of Sunbelt Integrated Trade Services, Inc., Quality Mechanical
Contractors, Inc., Inglett & Stubbs, Inc., Schmidt Electric Company, Inc.,
Crouch Industries LLC and Pneu Temp, Inc.

         "SUPERMAJORITY LENDERS" means (i) at all times after the occurrence of
an Event of Default and during its continuance, Lenders who, taken together, are
beneficially entitled to at least 75% of the aggregate Accommodations
Outstanding, and (ii) at all other times, Lenders whose Commitments, taken
together, are at least 75% of the aggregate amount of the Commitments.

         "SWINGLINE ADVANCES" means Advances made by the Swingline Lender or the
U.S. Alternate Operating Lender under Article 3.

         "SWINGLINE LENDER" means Royal Bank of Canada and its successors.

         "TOTAL DEBT" means, at any time, the aggregate of all Debt of the
Borrowers and the Restricted Subsidiaries and the Borrowers' Mark-to-Market
Exposure.

         "TOTAL NET DEBT" means, at any time, the sum of (i) Total Debt, minus
(ii) the cash or Cash Equivalents set forth on the consolidated balance sheet of
the Borrowers and the Restricted Subsidiaries determined in accordance with GAAP
plus (iii) any such cash or Cash Equivalents which are required to be added
pursuant to Sections 8.01(c)(viii) and 8.01(t).

         "U.S. ALTERNATE OPERATING FACILITY" means the revolving operating
credit facility to be made available to Nationwide by the U.S. Alternate
Operating Lender under this Agreement for the purposes set out in Section 2.03.

         "U.S. ALTERNATE OPERATING LENDER" means Bank One.

         "U.S. BASE RATE" means, at any time, the rate of interest per annum
equal to the greater of (i) the rate which the principal office of the
Administrative Agent in Toronto, Ontario announces from time to time as the
reference rate of interest for loans in U.S. Dollars to its Canadian borrowers,
and (ii) the Federal

<PAGE>   26
                                     - 25 -

Funds Rate (converted to a 365 day rate) plus 0.50 of 1%, adjusted automatically
with each change in such rates all without the necessity of any notice to a
Borrower or any other Person.

         "U.S. BASE RATE ADVANCE" has the meaning specified in the definition of
Advance.

         "U.S. DOLLARS" and "U.S. $" each means lawful money of the United
States of America.

         "U.S. DOLLAR ADVANCE" has the meaning specified in the definition of
Advance.

         "U.S. FACILITIES" means, collectively, the U.S. Operating Facility and
the U.S. Alternate Operating Facility.

         "U.S. MANDATORY BORROWING" has the meaning specified in Section
3.01(10).

         "U.S. OPERATING COMMITMENT" has the meaning specified in the definition
of Commitment.

         "U.S. OPERATING FACILITY" means the U.S. Dollar revolving operating
credit facility to be made available to Nationwide by certain Foreign Lenders
under this Agreement for the purposes set out in Section 2.03.

         "U.S. PRIME RATE" means, at any time, the rate of interest per annum
equal to the greater of (i) the rate which the principal office of the
Administrative Agent in New York, New York announces from time to time as the
reference rate of interest for commercial loans in U.S. Dollars to its U.S.
borrowers, and (ii) the Federal Funds Rate plus 0.50 of 1%, adjusted
automatically with each change in such rates all without the necessity of any
notice to a Borrower or any other Person.

         "U.S. PRIME RATE ADVANCE" has the meaning specified in the definition
of Advance.

         "WITHDRAWAL LIABILITY" means liability to a Multiemployer Plan as a
result of a complete or partial withdrawal from the Multiemployer Plan, as such
terms are defined in Part 1 of Subtitle E of Title IV of ERISA.

         SECTION 1.02.  GENDER AND NUMBER.

         Any reference in the Credit Documents to gender includes all genders,
and words importing the singular number only include the plural and vice versa.

<PAGE>   27
                                     - 26 -

         SECTION 1.03.  INTERPRETATION NOT AFFECTED BY HEADINGS, ETC.

         The provision of a Table of Contents, the division of this Agreement
into Articles and Sections and the insertion of headings are for convenience of
reference only and shall not affect the interpretation of this Agreement.

         SECTION 1.04.  CURRENCY.

         All references in the Credit Documents to dollars, unless otherwise
specifically indicated, are expressed in U.S. currency.

         SECTION 1.05.  CERTAIN PHRASES, ETC.

         In any Credit Document (i) (y) the words "including" and "includes"
mean "including (or includes) without limitation" and (z) the phrase "the
aggregate of", "the total of", "the sum of", or a phrase of similar meaning
means "the aggregate (or total or sum), without duplication, of", and (ii) in
the computation of periods of time from a specified date to a later specified
date, unless otherwise expressly stated, the words "from" means "from and
including" and the words "to" and "until" each mean "to but excluding".

         SECTION 1.06.  ACCOUNTING TERMS.

         All accounting terms not specifically defined in this Agreement shall
be interpreted in accordance with GAAP.

         SECTION 1.07.  CALCULATIONS ON A PRO FORMA BASIS.

         If a Borrower or any Restricted Subsidiary has made an Acquisition
during a period relevant to the determination of Consolidated EBITDA then: (i)
Consolidated EBITDA shall be calculated on a pro forma basis as if such
Acquisition had taken place on the first day of the period; (ii) any
indebtedness of any description incurred or assumed by a Borrower or any
Restricted Subsidiary in connection with the Acquisition, or any indebtedness of
any Person acquired, shall be deemed to have been so incurred, assumed or
acquired on the first day of the period; and (iii) interest shall be deemed to
have accrued on the amount of indebtedness at the rate applicable to Canadian
Prime Rate Advances or U.S. Prime Rate Advance, as the case may be.

         SECTION 1.08.  RATEABLE PORTION OF ACCOMMODATIONS.

         References in this Agreement to a Lender's rateable portion of
Advances, Drawings, Drafts, Bankers' Acceptances and Documentary Credits or
rateable share of payments of principal, interest, Fees or any other amount,
shall mean and refer to a rateable portion or share as nearly as may be rateable
in the circumstances, as determined in good faith by the Administrative Agent.
Each such

<PAGE>   28
                                     - 27 -

determination by the Administrative Agent shall be prima facie evidence of such
rateable share.

         SECTION 1.09.  INCORPORATION OF SCHEDULES.

         The schedules attached to this Agreement shall, for all purpose of this
Agreement, form an integral part of it.

         SECTION 1.10.  CONFLICT.

         The provisions of this Agreement prevail in the event of any conflict
or inconsistency between its provisions and the provisions of any of the other
Credit Documents.

         SECTION 1.11.  ACTIONS ON DAYS OTHER THAN BUSINESS DAYS

         Except as otherwise specifically provided herein, where any payment is
required to be made or any other action is required to be taken on a particular
day and such day is not a Business Day and, as a result, such payment cannot be
made or action cannot be taken on such day, then this Agreement shall be deemed
to provide that such payment shall be made or such action shall be taken on the
first Business Day after such day; provided that if such deferral would cause
such payment to be made or such action to be taken in the following calendar
month, such payment shall be made or such action shall be taken on the next
preceding Business Day and interest and fees shall be calculated accordingly. If
the payment of any amount is deferred for any period under this section, then
such period shall, unless otherwise provided herein, be included for purposes of
the computation of any interest or fees payable hereunder.

         SECTION 1.12.  SEPARATE ACCOMMODATIONS.

         (1) With respect to the Canadian Operating Facility, the obligations of
Bracknell and State hereunder shall be joint and several. The obligations of the
Borrowers under all other Credit Facilities shall be several and not joint and
several. Whenever this Agreement makes reference to payment, obligations, rights
or duties of any one or more of the Borrowers or the Lenders without specific
identification or tracing, such reference shall be interpreted, consistent with
Section 2.01 hereof, so as to give effect to the parties' agreements herein that
the U.S. Operating Facility and the U.S. Alternate Operating Facility shall be
treated as separate from the Canadian Term Facility, the Canadian Acquisition
Facility, the Canadian Operating Facility and the Canadian Swingline Facility
subject to cross-collateralization pursuant to the Security Documents. Without
limiting the foregoing, any payments made by Nationwide hereunder shall be
applied for the benefit of the Foreign Lenders, as their respective interests in
the U.S. Facilities may appear, and any payments made by Bracknell or State
hereunder shall be

<PAGE>   29
                                     - 28 -

applied for the benefit of the Domestic Lenders, as their respective interests
in the Canadian Facilities may appear.

         (2) The foregoing provisions of this Section 1.12 shall not apply at
any time after a declaration pursuant to Section 9.01 that all Accommodations
Outstanding are due and payable. At such time the Lenders may acquire
Commitments and Accommodations Outstanding of other Lenders irrespective of
their status as Domestic Lenders or Foreign Lenders.

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

<PAGE>   30
                                     - 29 -

                                   ARTICLE 2

                                CREDIT FACILITIES

         SECTION 2.01.  AVAILABILITY.

         (1) Subject to the provisions of this Agreement, each Lender severally
agrees, on the terms and conditions of this Agreement, to make Accommodations to
the Borrowers rateably in accordance with each such Lender's Commitment.
Accommodations shall be made available as (i) Advances pursuant to Article 3,
(ii) Bankers' Acceptances pursuant to Article 4 under the Canadian Operating
Facility, the Canadian Acquisition Facility and the Canadian Term Facility, and
(iii) in the case of the Issuing Lenders only and pursuant to the Operating
Facilities only, Documentary Credits pursuant to Article 5.

         (2) The Swingline Lender agrees, on the terms and conditions of this
Agreement, to make Accommodations available to Bracknell and State in accordance
with its Canadian Swingline Commitment at any time after execution and delivery
by Bracknell and State of the Swingline Lender's usual and customary
documentation, if any, for the provision of cash management services.
Accommodations will be made available as Advances pursuant to Article 3.

         (3) The U.S. Alternate Operating Lender agrees on the terms and
conditions of this Agreement, to make Accommodations available to Nationwide in
accordance with its U.S. Alternate Operating Commitment at any time after
execution and delivery by Nationwide of the U.S. Alternate Operating Lender's
usual and customary documentation, if any, for the provision of cash management
services. Accommodations will be made available as Advances pursuant to Article
3.

         (4) No Accommodations are available under the Canadian Acquisition
Facility as at the date hereof, except in connection with a conversion from one
Type of Accommodation or Advance to another Type of Accommodation or Advance.

         (5) No Accommodations are available under the Canadian Term Facility as
at the date hereof, except in connection with a conversion from one Type of
Accommodation or Advance to another Type of Accommodation or Advance.

         (6) Accommodations under (i) the Canadian Term Facility and the
Canadian Acquisition Facility shall be made available to Bracknell only by
Domestic Lenders only, (ii) the Canadian Operating Facility shall be made
available to Bracknell and State only by Domestic Lenders only, (iii) the U.S.
Operating Facility shall be made available to Nationwide only by Foreign Lenders
only; and

<PAGE>   31
                                     - 30 -

(iv) the U.S. Alternate Operating Facility shall be made available to Nationwide
by the U.S. Alternate Operating Lenders only.

         (7) The Administrative Agent shall give each Lender prompt notice of
any (i) Accommodation Notice received from a Borrower and of each Lender's
rateable portion of any Accommodation, and (ii) other notice received by it from
any Borrower under the Agreement.

         SECTION 2.02.  COMMITMENTS AND FACILITY LIMITS.

         (1) The Accommodations Outstanding to all Lenders under (i) the
Canadian Operating Facility (including the Canadian Swingline Commitment) shall
not at any time exceed the Canadian Operating Commitment, (ii) the U.S.
Operating Facility (including the U.S. Alternate Operating Facility) shall not
at any time exceed the U.S. Operating Commitment, (iii) the Canadian Acquisition
Facility shall not at any time exceed the Canadian Acquisition Commitment, and
(iv) the Canadian Term Facility shall not at any time exceed the Canadian Term
Commitment. The Accommodations Outstanding to each Lender under (v) the Canadian
Operating Facility shall not at any time exceed the Lender's Canadian Operating
Commitment, (vi) the Canadian Term Facility shall not at any time exceed the
Lender's Canadian Term Commitment, (vii) the Canadian Acquisition Facility shall
not at any time exceed the Lender's Canadian Acquisition Commitment, (viii) the
U.S. Operating Facility shall not at any time exceed the Lender's U.S. Operating
Commitment, and (ix) the U.S. Alternate Operating Facility shall not at any time
exceed the Lender's U.S. Alternate Operating Commitment. The Accommodations
Outstanding to the Swingline Lender under the Canadian Swingline Facility shall
not at any time exceed the Canadian Swingline Commitment.

         (2) The Operating Facilities shall revolve and no payment under the
Operating Facilities shall reduce the Operating Commitments or any Lender's
Operating Commitment. The Canadian Swingline Facility shall revolve and no
payment under the Canadian Swingline Facility shall reduce the Canadian
Swingline Commitment or the Lender's Swingline Commitment. The Canadian Term
Facility and the Canadian Acquisition Facility shall not revolve and any amount
repaid or prepaid, as the case may be, under the Canadian Term Facility or the
Canadian Acquisition Facility cannot be reborrowed and reduces the relevant
Commitment (and each Lender's Commitment, rateably) by the amount repaid or
prepaid, as the case may be.

         (3) A conversion from one Type of Accommodation or Advance to another
Type of Accommodation or Advance shall not constitute a repayment or prepayment.

<PAGE>   32

                                      -31-

         SECTION 2.03. USE OF PROCEEDS AND LIMITATIONS ON ACCOMMODATIONS.

         (1) State and Bracknell shall use the proceeds of Accommodations under
the Canadian Operating Facility and the Canadian Swingline Facility for their
general corporate purposes only and not for Acquisitions or for the purpose of
prepaying amounts under Section 11.07(6).

         (2) Nationwide shall use the proceeds of Accommodations under the U.S.
Operating Facility, for its general corporate purposes and not for Acquisitions
or for the purpose of prepaying amounts under Section 11.07(6).

         (3) Bracknell has used the proceeds of Accommodations under the
Canadian Term Facility for the purpose specified in the Amended and Restated
Credit Agreement.

         (4) Bracknell has used the proceeds of Accommodations under the
Canadian Acquisition Facility for the purpose specified in the Amended and
Restated Credit Agreement.

         (5) Nationwide shall use the proceeds of Accommodations under the U.S.
Alternate Operating Facility for its general corporate purposes and not for
Acquisitions or for the purpose of prepaying amounts under Section 11.07(6).

         SECTION 2.04. MANDATORY REPAYMENTS AND REDUCTIONS OF COMMITMENTS.

         (1) The Borrowers shall repay (subject to Section 9.01) and there shall
become due and payable on the Relevant Repayment Date, the Accommodations
Outstanding under each of the Canadian Operating Facility, the Canadian
Swingline Facility and the U.S. Operating Facility, together with all accrued
interest and Fees and all other amounts payable in connection with the Operating
Facilities and the Canadian Swingline Facility.

         (2) Bracknell shall repay (subject to Section 9.01) and there shall
become due and payable the Accommodations Outstanding under the Canadian Term
Facility and the Canadian Acquisition Facility rateably in quarterly
installments in the following amounts (expressed as a percentage of the Canadian
Term Commitment and the Canadian Acquisition Commitment at the close of business
on April 30, 2000) on the last day of each of the following Financial Quarters
at the rate of 5% commencing January 31, 2001 and ending with the Financial
Quarter ending October 31, 2003 and thereafter at the rate of 10% commencing
with the Financial Quarter ending January 31, 2004 and ending with the Financial
Quarter ending October 31, 2004 provided that all Accommodations Outstanding
shall have been paid in full on October 31, 2004.

<PAGE>   33
                                      -32-

         (3) Nationwide shall repay (subject to Section 9.01) and there shall
become due and payable on the Relevant Repayment Date, the Accommodations
Outstanding under the U.S. Alternate Operating Facility, together with all
accrued interest and Fees and all other amounts payable in connection with the
U.S. Alternate Operating Facility.

         (4) Subject to the last sentence of this Section 2.04(4), if a Borrower
or a Restricted Subsidiary issues any shares, options, warrants or securities
convertible into shares or other securities, receives a capital contribution
from any Person, or incurs any Subordinated Debt, an amount equal to 100% of the
Net Proceeds shall be paid (i) firstly to repay amounts outstanding under, and
permanently cancel, the Senior Subordinated Bridge Loan; (ii) secondly to repay
amounts outstanding under the Sunbelt Notes; (iii) thirdly to repay amounts
outstanding under, and permanently cancel, the Bracknell Limited Partnership
Facility; (iv) fourthly to the Administrative Agent, for the account of the
Lenders to be applied pro rata to the prepayment of Accommodations Outstanding
under the Canadian Term Facility and the Canadian Acquisition Facility (and the
relevant Canadian Term Commitment and Canadian Acquisition Commitment shall be
reduced by such amount); and (v) fifthly to the Administrative Agent for the
account of the Lenders to be applied to the prepayments of Accommodations
Outstanding under the Operating Facilities, in each case in accordance with
Section 2.09 hereof. Such payment shall be made within 5 Business Days of
receipt of the Net Proceeds. At any time that a Borrower or a Restricted
Subsidiary incurs any Subordinated Debt, a leverage ratio acceptable to the
Lenders and the Borrowers shall be established and this Agreement shall be
amended accordingly. No payment of Net Proceeds shall be required to be paid
pursuant to this subsection if such payment is specifically waived by the
requisite Lenders as part of their approval of a Permitted Acquisition or if the
Net Proceeds have been received by a Restricted Subsidiary or a Borrower (other
than Bracknell) as a result of (i) the issuance of securities to another
Restricted Subsidiary or to a Borrower, (ii) a capital contribution by a
Restricted Subsidiary or a Borrower, or (iii) the incurrence of Subordinated
Debt owing to a Borrower or a Restricted Subsidiary by another Borrower or
Restricted Subsidiary.

         (5) Subject to the last sentence of this Section 2.04(5), if a Borrower
or a Restricted Subsidiary makes a disposition of assets as permitted in Section
8.02(d)(v) and the Net Proceeds thereof are not used for Permitted Acquisitions
within the time period set forth therein, an amount equal to (i) 50% of all Net
Proceeds not so used which exceed $1,000,000 but which are less than or equal to
$10,000,000 in the aggregate in any Financial Year, and (ii) 100% of Net
Proceeds not so used which exceed $10,000,000 in the aggregate in any Financial
Year, shall be paid to the Administrative Agent, for the account of the Lenders
and shall be applied rateably to the prepayment of Accommodations Outstanding
under the Canadian Term Facility and the Canadian Acquisition Facility (and the
relevant Canadian Term Commitment and Canadian Acquisition Commitment shall be

<PAGE>   34
                                      -33-

reduced by such amount), in each case in accordance with Section 2.09 hereof.
Such payment shall be made on the first Business Day following the expiry of the
three month period. No payment of Net Proceeds shall be required to be made
pursuant to this subsection if such payment is specifically waived by the
requisite Lenders as part of their approval of a Permitted Acquisition or if the
assets have been sold or otherwise disposed of to a Borrower or a Restricted
Subsidiary.

         (6) If, on any day, the Accommodations Outstanding under a Credit
Facility exceed 105% of the Commitments thereunder due to exchange rate
fluctuations, the Borrowers shall on the third Business Day following such day
(i) repay Floating Rate Advances outstanding under such Credit Facility; or (ii)
pay an amount to the Administrative Agent and irrevocably authorize and direct
the Administrative Agent to apply such payment to Libor Rate Advances or as
payment in respect of the Borrower's reimbursement obligation in respect of
Drawings, on the next maturity date for a Libor Rate Advance or Drawing, as the
case may be, such that the Accommodations Outstanding under such Credit
Facility, after giving effect thereto, do not exceed the Commitment thereunder.

         SECTION 2.05. OPTIONAL PREPAYMENTS AND REDUCTIONS OF COMMITMENTS.

         (1) Subject to the next following sentence and to the provisions of
this Agreement, if a Borrower has, upon the number of Business Days' notice to
the Administrative Agent specified in Schedule 5, delivered a notice to the
Administrative Agent stating the proposed date and aggregate principal amount of
any prepayment of Accommodations Outstanding or reduction of the Lenders'
Commitment, it shall, on that date, pay to the Lenders the amount of the
prepayment and the amount, if any, by which the Accommodations Outstanding under
the Credit Facility exceed the proposed reduced Commitment. The Borrowers shall
not be permitted to prepay all Accommodations outstanding under the Credit
Facility so long as there is any amount owing under the Bracknell Limited
Partnership Facility. No prepayment of an Operating Facility shall reduce the
Operating Commitment related thereto unless the relevant Borrower has also
requested a reduction of such Operating Commitment. Each partial prepayment and
reduction shall be in an aggregate minimum principal amount of U.S. $1,000,000
and U.S. $500,000 integral multiples thereof and the Lenders' Commitment, to the
extent so requested, shall be so reduced on such date. The Borrower shall
prepay (i) a Libor Rate Advance only on the last day of the Libor Interest
Period applicable to it, and (ii) the amount of any Drawing only on the maturity
date for the relevant BA Instrument.

         (2) Subject to the next sentence, if the Credit Facilities are prepaid
from the proceeds of Commercial Debt, the Borrowers shall pay to the Lenders a
fee equal to (i) one (1%) percent of the amount so prepaid if such prepayment
occurs on or prior to October 31, 2001, (ii) three quarters of one (.75%)
percent of the amount

<PAGE>   35
                                      -34-

so prepaid if such prepayment occurs after October 31, 2001 but on or prior to
October 31, 2003, or (iii) one half of one (.50%) percent of the amount so
prepaid if such prepayment occurs after October 31, 2003 but on or prior to
October 31, 2004. The fee required to be paid pursuant to this Section 2.05(2)
may be waived or decreased by the Majority Lenders.

         SECTION 2.06. CHANGES TO APPLICABLE MARGINS AND APPLICABLE FACILITY
FEE.

         (1) The changes in the margins and fees contemplated in the definitions
of Applicable Margin and Applicable Facility Fee shall be effective as of the
first day of the Financial Quarter in which the Compliance Certificate
contemplated under Section 8.01 is required to be delivered. With respect to any
payment of interest or fees which is required to be made between the first day
of any Financial Quarter and the date on which the Compliance Certificate is
delivered (the "STUB PERIOD"), the Applicable Margin or Applicable Facility Fee,
as the case may be, used to calculate the amount of such payment shall be the
Applicable Margin or Applicable Facility Fee, as the case may be, for the
previous Financial Quarter. Upon receipt of each Compliance Certificate, the
Administrative Agent shall immediately determine the amount of any overpayment
or underpayment of interest or fees during the immediately preceding Stub Period
and notify Bracknell and the Lenders of the amount. The determination by the
Administrative Agent shall constitute, in the absence of manifest error,
conclusive evidence of the amount of the overpayment or underpayment, as the
case may be. In the event of an underpayment, the Borrowers shall, upon receipt
of the notice, pay to the Lenders, in accordance with Section 2.08, the amount
of the underpayment. In the event of an overpayment, the amount of the
overpayment shall be credited and applied to succeeding payments of interest and
fees as they become due until the amount has been fully applied.

         (2) If at the time of a change in the Applicable Margin applicable to a
Drawing pursuant to the preceding subsection there exist any outstanding
Drawings under the Credit Facilities, then (i) in the case of an increase in
such Applicable Margin, the relevant Borrower shall pay to the Administrative
Agent (for the rateable account of the relevant Lenders); or (ii) in the case of
a decrease in such Applicable Margin, the relevant Lenders (rateably) shall
credit the Borrowers, in each case, an amount in respect of each such Drawing
equal to the product obtained by multiplying (A) the product obtained by
multiplying (w) the difference between the Applicable Margin in effect prior to
such change and the Applicable Margin in effect immediately after such change,
by (x) the aggregate Face Amount of such Drawing, by (B) the quotient obtained
by dividing (y) the number of days to maturity remaining in respect of such
Drawing, by (z) 365 days. Any payment or credit as a result of a change in the
Applicable Margin shall be made, in respect of Drawings, on the maturity date
thereof in accordance with Article 4.

<PAGE>   36
                                      -35-

         (3) Upon the occurrence and during the continuance of a Default or
Event of Default, each of the Applicable Margins and the Applicable Facility Fee
shall revert to the highest rates provided for in Schedule 6.

         (4) If the Administrative Agent or any of the Lenders believes, in good
faith, that the financial condition of a Borrower or any Restricted Subsidiary
has deteriorated so as to result in the most recently delivered Compliance
Certificate being inaccurate in any material respect, then at the request of the
Administrative Agent, Bracknell shall, within 2 Business Days of a request
therefor, provide to the Administrative Agent a pro forma calculation of the
ratio of Total Net Debt to Consolidated EBITDA. The Administrative Agent may, on
the basis of the pro forma calculations, adjust the Applicable Margins and the
Applicable Commitment Fee upward in accordance with the pro forma calculation or
as otherwise agreed between Bracknell and the Administrative Agent.

         SECTION 2.07. FEES.

         (1) The Borrowers shall pay to the Administrative Agent, on the first
day of each year during the term of the Credit Agreement, the annual agency fee
that is due and payable pursuant to the commitment letter dated September 21,
1999.

         (2) The Borrowers shall pay to the Administrative Agent for the account
of the Lenders, a facility fee at a rate equal to the Applicable Facility Fee
from time to time multiplied by the aggregate Commitments (irrespective of
Accommodations Outstanding from time to time) to be calculated on an annual
basis using a 365 day year, and payable quarterly in arrears on the last day of
each Financial Quarter.

         SECTION 2.08. PAYMENTS UNDER THIS AGREEMENT.

         (1) Unless otherwise expressly provided in this Agreement, each
Borrower shall (i) make any payment required to be made by it to the
Administrative Agent or any Lender (A) in the case of payments made by Bracknell
or State, by depositing the amount of the payment in the relevant currency to
the relevant Borrower's Account not later than 10:00 a.m. (Toronto time) on the
date the payment is due or by wire transfer of immediately available funds in
the amount of the payment in the relevant currency to the Administrative Agent,
as instructed by the Administrative Agent from time to time, not later than
10:00 a.m. (Toronto time) on the date the payment is due (B) in the case of
payments made by Nationwide, by wire transfer of immediately available funds in
the amount of the payment in the relevant currency to the Administrative Agent,
as instructed by the Administrative Agent from time to time, not later than
10:00 a.m. (Toronto time) on the date the payment is due, and (ii) provide to
the Administrative Agent, upon the number of Business Days' notice to the
Administrative Agent specified in

<PAGE>   37
                                      -36-

Schedule 5, a notice of repayment which shall be irrevocable and binding on the
Borrower and shall specify (x) the date of repayment and (y) the Credit Facility
which is being repaid. The Borrower shall make each such payment (iii) in
Canadian Dollars, if the Accommodation was originally made in or has been
converted to Canadian Dollars, and (iv) in U.S. Dollars, if the Accommodation
was originally made in or has been converted to U.S. Dollars. The Administrative
Agent shall distribute to each Lender, promptly on the date of receipt by the
Administrative Agent of any payment, an amount equal to the amount then due each
Lender. If the distribution is not made on that date, the Administrative Agent
shall pay interest on the amount for each day, from the date the amount is
received by the Administrative Agent until the date of distribution, at the
prevailing interbank rate for late payments. Any amount received by the
Administrative Agent for the account of the Lenders shall be held in trust for
their benefit until a distribution.

         (2) Unless otherwise expressly provided in this Agreement, the
Administrative Agent shall make Accommodations and other payments to the
Borrowers under this Agreement (A) in the case of Accommodations or other
payments made to Bracknell or State, by crediting the relevant Borrower's
Account (or causing the Borrower's Account to be credited) with the amount of
the payment in the relevant currency not later than 1:00 p.m. (Toronto time) on
the date the payment is to be made or by wire transfer of immediately available
funds in the amount of the payment in the relevant currency to the relevant
Borrower, as instructed by such Borrower from time to time, not later than 1:00
p.m. (Toronto time) on the date the payment is to be made and (B) in the case of
Accommodations or other payments made to Nationwide, by wire transfer of
immediately available funds in the amount of the payment in the relevant
currency to Nationwide, as instructed by Nationwide from time to time, not later
than 1:00 p.m. (Toronto time) on the date the payment is to be made.

         (3) Each Borrower hereby authorizes each Lender, if and to the extent
payment owed to such Lender by the Borrower is not made to the Administrative
Agent when due, to charge from time to time any due amount against any or all of
the Borrowers' Accounts with the Lender.

         SECTION 2.09. APPLICATION OF PAYMENTS AND PREPAYMENTS.

         (1) All repayments or prepayments received by the Administrative Agent
pursuant to Sections 2.04 and 2.05 in respect of the Canadian Term Commitment
and the Canadian Acquisition Commitment shall be applied by the Administrative
Agent to the amounts due pursuant to Sections 2.04(2) and 2.04(3), as the case
may be, in the inverse order of their maturity.

         (2) All amounts received by the Administrative Agent from or on behalf
of any of the Borrowers and not previously applied pursuant to this

<PAGE>   38
                                      -37-

Agreement or any other Credit Document shall be applied by the Administrative
Agent as follows (i) first, in reduction of such Borrower's obligations to pay
any unpaid interest and any Fees which are due and owing, (ii) second, in
reduction of the Borrower's obligations to pay any claims or losses referred to
in Section 11.06, (iii) third, in reduction of the Borrower's obligations to pay
any amounts due and owing on account of any unpaid principal amount of Advances
which is due and owing, (iv) fourth, in reduction of the Borrower's obligations
to pay any other unpaid Accommodations Outstanding which are due and owing, (v)
fifth, in reduction of any other obligation of the Borrower under this Agreement
and the other Credit Documents, and (vi) sixth, to the Borrower or such other
Persons as may lawfully be entitled to or directed to receive the remainder.

         SECTION 2.10. EXTENSION OF OPERATING FACILITIES AND CANADIAN SWINGLINE
FACILITY.

         (1) By notice in writing to the Administrative Agent given not more
than 90 days and not less than 60 days prior to the date which is 364 days after
the date of this Agreement, Bracknell may request each Domestic Lender (other
than a Domestic Lender which was a Non-Consenting Lender in respect of any
previous request under this Section 2.10) to extend the Relevant Repayment Date
of the Canadian Operating Facility (including the Canadian Swingline Facility)
for an additional period of 364 days. By notice in writing to the Administrative
Agent given not more than 90 days and not less than 60 days prior to the date
which is 364 days after the date of this Agreement, Nationwide may request each
Foreign Lender (other than a Foreign Lender which was a Non-Consenting Lender in
respect of any previous request under this Section 2.10) to extend the Relevant
Repayment Date of the U.S. Operating Facility including the U.S. Alternate
Operating Facility for an additional period of 364 days. The Administrative
Agent shall immediately advise each relevant Lender of the requested extension.

         (2) Each Lender shall advise the Administrative Agent in writing as to
whether it consents to such requested extension within 21 days of receipt by the
Administrative Agent from Bracknell or Nationwide, as the case may be, of the
notice requesting such extension. If any relevant Lender does not provide such
notice within such time, such Lender shall be deemed to have refused the
extension. Not more than two Business Days following (i) the last day for
receipt by the Administrative Agent of such notices; or (ii) if all such Lenders
shall have provided such notice, the day on which the last of such notices shall
have been received by the Administrative Agent, the Administrative Agent shall
advise Bracknell or Nationwide, as the case may be, and each such Lender, with
respect to each such Lender, whether such Lender has consented to the extension
of the Relevant Repayment Date requested by Bracknell or Nationwide, as the case
may be, pursuant to Section 2.10(1) or has refused, or is deemed to have
refused, such extension, and the Accommodations Outstanding of each such Lender.

<PAGE>   39
                                      -38-

         (3) In accordance with this Section 2.10(3), each Lender consenting to
an extension of the Relevant Repayment Date in respect of its Operating
Commitment (a "CONSENTING LENDER") may offer, at the Consenting Lender's sole
discretion, to acquire all or any portion of the Lender's Operating Commitment
and the Accommodations Outstanding under the Operating Facility, of (i) each
Domestic Lender in the case of a Consenting Lender which is a Domestic Lender,
and (ii) each Foreign Lender in the case of a Consenting Lender which is a
Foreign Lender, which has not consented to such extension (each a
"NON-CONSENTING LENDER") by giving written notice to the Administrative Agent of
the portion of the Lender's Operating Commitment of each Non-Consenting Lender
(each a "NON-CONSENTING LENDER'S COMMITMENT") and Accommodations Outstanding
under the Operating Facility which such Consenting Lender is prepared to
acquire. Such notice shall be given not more than seven (7) Business Days
following receipt by such Consenting Lender of the notice given by the
Administrative Agent pursuant to Section 2.10(2). If more than one Consenting
Lender gives notice to the Administrative Agent that it wishes to acquire all or
a portion of the outstanding Non-Consenting Lender's Operating Commitment and
Accommodations Outstanding under the Operating Facility, then, to the extent
that the amount of such Non-Consenting Lender's Operating Commitment and
Accommodations Outstanding under the Operating Facility which such Consenting
Lenders wish to acquire exceeds the amount of the Non-Consenting Lender's
Operating Commitment and Accommodations Outstanding under the Operating
Facility, each of the Consenting Lenders shall be deemed to have offered to
acquire its rateable portion (determined on a pro rata basis by the
Administrative Agent according to the respective amounts of such Non-Consenting
Lender's Operating Commitment and Accommodations Outstanding under the Operating
Facility which such Consenting Lenders have indicated in such notices that they
wish to acquire) of the Non-Consenting Lender's Operating Commitment and
Accommodations Outstanding under the Operating Facility. The Administrative
Agent shall give written notice to Bracknell or Nationwide, as the case may be,
within two Business Days following the expiry of the time for the Consenting
Lenders to give notice of their offer to acquire, pursuant to this Section
2.10(3), any portion of the Non-Consenting Lender's Operating Commitment and
Accommodations Outstanding under the Operating Facility.

         (4) If the Consenting Lenders have not offered to acquire all of the
Non-Consenting Lender's Commitment and the Accommodations Outstanding, then
Nationwide or Bracknell, as the case may be, may arrange for one or more other
financial institutions acceptable to the Administrative Agent which are (i)
Domestic Lenders in the case of the Canadian Operating Facility, or (ii) Foreign
Lenders in the case of the U.S. Operating Facility or the U.S. Alternate
Operating Facility (each, a "SUBSTITUTE LENDER") to offer to acquire the balance
of such Non-Consenting Lender's Operating Commitment and Accommodations
Outstanding thereunder.

<PAGE>   40
                                      -39-

         (5) If one or more of the Lenders or Substitute Lenders (each, an
"ACQUIRING LENDER") has given notice to the Administrative Agent that it offers
to acquire all or a portion of a Non-Consenting Lender's Operating Commitment
and Accommodations Outstanding under the Operating Facility pursuant to Section
2.10(3) or 2.10(4), the Administrative Agent shall be entitled to accept such
offer by giving notice to each of the Acquiring Lenders setting out the amount
of the Non-Consenting Lender's Operating Commitment and Accommodations
Outstanding under the Operating Facility to be acquired by each of the Acquiring
Lenders in accordance with Section 2.10(3) or 2.10(4) and of the date (the
"ACQUISITION DATE") on which the acquisition shall be effective (which date
shall be the Relevant Repayment Date in respect of such Non-Consenting Lender).
At or before 10:00 a.m. (Toronto time) on the Acquisition Date each of the
Acquiring Lenders shall deposit with, or transfer to, the Administrative Agent
at its specified office for the account of the Non-Consenting Lender an amount
equal to the amount of the Accommodations Outstanding under the Operating
Facility to be acquired by it pursuant to this Section 2.10(5), together with
accrued and unpaid interest and Fees thereon and all other amounts payable to
such Non-Consenting Lender. Upon receipt of such amounts, the Administrative
Agent shall disburse such amount to the Non-Consenting Lender against delivery
of assignment and assumption agreements in the form of Schedule 9. Any
Non-Consenting Lender whose Non-Consenting Lender's Operating Commitment and
Accommodations Outstanding under the Operating Facility are to be assumed by an
Acquiring Lender shall execute all such documents (including an assignment and
assumption agreement in the form of Schedule 9) as may be reasonably required by
the Administrative Agent, Bracknell and the Acquiring Lender to effect such
assignment and assumption.

         (6) Subject as provided in Section 2.10(7), in the event that Bracknell
or Nationwide, as the case may be, has requested an extension of the Relevant
Repayment Date pursuant to Section 2.10(1), and (i) such extension has been
agreed to by all relevant Lenders, then the Relevant Repayment Date in respect
of each such Lender shall be extended for a period of 364 days, or (ii) such
extension has been consented to by some, but not all, of the relevant Lenders,
then (x) with respect to the Consenting Lenders and Acquiring Lenders, the
Relevant Repayment Date in respect of each such Lender shall be extended for a
period of 364 days; and (y) with respect to the Non-Consenting Lenders where
there is no Acquiring Lender, the Relevant Repayment Date in respect of each
such Lender shall not be extended and Bracknell or Nationwide, as the case may
be, shall, on the original Relevant Repayment Date, prepay all such
Accommodations Outstanding under the Operating Facility of such Non-Consenting
Lender and thereupon reduce such Non-Consenting Lender's Operating Commitment to
nil, all without affecting the Lender's Operating Commitment of any other
Lender.

         (7) Where the aggregate of the Non-Consenting Lender's Operating
Commitments which the Acquiring Lenders pursuant to Section 2.10(3), (4) or (5),
as the case may be, have not agreed to acquire exceeds 51% of the aggregate

<PAGE>   41
                                      -40-

amount of the Operating Commitments of those Lenders in respect of which the
applicable request for an extension of the Relevant Repayment Date applies, then
the agreements contemplated by Section 2.10(5) shall not be effective, the
transactions for the acquisition and sale of the Non-Consenting Lender's
Accommodations Outstanding shall not take place, and the Relevant Repayment Date
for the Operating Commitments shall not be extended in respect of any Lender.

         (8) Any consent to an extension of the Canadian Operating Commitment of
a Lender shall also include, for purposes of this Section 2.10, a consent to an
extension of its Canadian Swingline Commitment, if any. If a Lender has declined
to extend its Canadian Operating Commitment, it shall also be deemed to have
declined to extend its Canadian Swingline Commitment, if any. In such case, a
Consenting Lender or a Substitute Lender may offer to acquire the Canadian
Swingline Commitment of the non-consenting Lender. The Administrative Agent, in
consultation with Bracknell, shall decide which Consenting Lender or Substitute
Lender shall acquire the Canadian Swingline Commitment and on the Acquisition
Date that Lender shall acquire the Canadian Swingline Commitment of the
non-consenting Lender in accordance with the provisions of Section 2.10(5) of
this Agreement.

         SECTION 2.11. COMPUTATIONS OF INTEREST AND FEES.

         (1) All computations of interest shall be made by the Administrative
Agent taking into account the actual number of days occurring in the period for
which such interest is payable and (i) if based on the Canadian Prime Rate or
the U.S. Base Rate, on the basis of a year of 365 or 366 days, as the case may
be, or (ii) if based on the Libor Rate or the U.S. Prime Rate, on the basis of a
year of 360 days.

         (2) All computations of Fees shall be made by the Administrative Agent
on the basis of a year of 365 or 366 days, as the case may be, taking into
account the actual number of days (including the first day but excluding the
last day) occurring in the period for which the fees are payable.

         (3) For purposes of the Interest Act (Canada), (i) whenever any
interest or Fee under this Agreement is calculated using a rate based on a year
of 360 days or 365 days, as the case may be, such rate determined pursuant to
such calculation, when expressed as an annual rate, is equivalent to (x) the
applicable rate based on a year of 360, 365 or 366 days, as the case may be, (y)
multiplied by the actual number of days in the calendar year in which the period
for which such interest or fee is payable (or compounded) ends, and (z) divided
by 360, 365 or 366, as the case may be, (ii) the principle of deemed
reinvestment of interest does not apply to any interest calculation under this
Agreement, and (ii) the rates of interest stipulated in this Agreement are
intended to be nominal rates and not effective rates or yields.

<PAGE>   42
                                     -41-

                                   ARTICLE 3

                                    ADVANCES

         SECTION 3.01. THE ADVANCES.

         (1) Subject to the conditions precedent in Article 6, each Domestic
Lender having a relevant Commitment severally agrees, on the terms and
conditions of this Agreement, to make Advances (i) to Bracknell under the
Canadian Term Facility and the Canadian Acquisition Facility, from time to time
on any Business Day prior to the Relevant Repayment Date, and (ii) to Bracknell
or State under the Canadian Operating Facility, from time to time on any
Business Day prior to the Relevant Repayment Date.

         (2) Subject to the conditions precedent in Article 6, the Swingline
Lender agrees, on the terms and conditions of the Agreement, to make Advances
under the Canadian Swingline Facility from time to time on any Business Day
prior to the Relevant Repayment Date.

         (3) Subject to the conditions precedent in Article 6, the U.S.
Alternate Operating Lender agrees, on the terms and conditions of the Agreement,
to make Advances under the U.S. Alternate Operating Facility from time to time
on any Business Day prior to the Relevant Repayment Date.

         (4) Subject to the conditions precedent in Article 6, the Foreign
Lender having a relevant Commitment severally agrees, on the terms and
conditions of this Agreement, to make Advances to Nationwide under the U.S.
Operating Facility, from time to time on any Business Day prior to the Relevant
Repayment Date.

         (5) Advances under the Canadian Operating Facility, the Canadian
Acquisition Facility and the Canadian Term Facility shall be made available as
Canadian Prime Rate Advances, U.S. Base Rate Advances and Libor Rate Advances.
Advances under the U.S. Operating Facility shall be made available as U.S. Prime
Rate Advances and Libor Rate Advances. Advances under the U.S. Alternate
Operating Facility shall be available as U.S. Prime Rate Advances.

         (6) Each Borrowing under the Canadian Term Facility, the Canadian
Acquisition Facility and the Canadian Operating Facility shall consist of the
same Types of Advances made to Bracknell or State, as the case may be, on the
same day rateably by the relevant Domestic Lenders.

         (7) Each Borrowing under the U.S. Operating Facility shall consist of
the same Types of Advances made to Nationwide on the same day rateably by the
relevant Foreign Lenders.

<PAGE>   43
                                      -42-

         (8) Each Borrowing under the Canadian Term Facility, the Canadian
Acquisition Facility and the Canadian Operating Facility shall be in minimum
amounts of (i) Cdn. $2,000,000 and Cdn. $1,000,000 multiples thereof in the case
of Canadian Dollar Advances, and (ii) U.S. $2,000,000 and U.S. $1,000,000
multiples thereof in the case of U.S. Dollar Advances. Each Borrowing under the
U.S. Operating Facility shall be in minimum amounts of (i) U.S. $1,000,000 and
U.S.$1,000,000 multiples thereof in the case of Floating Rate Advances, and (ii)
U.S. $1,000,000 and integral multiples of U.S. $1,000,000 in the case of Libor
Rate Advances.

         (9) The Swingline Lender shall not make an Accommodation under the
Canadian Swingline Facility after it has received written notice from the
Administrative Agent that an Event of Default has occurred and is continuing.
Upon receipt of such notice, the Swingline Lender shall advise the
Administrative Agent of the amount of Accommodations Outstanding under the
Canadian Swingline Facility. In such event (i) the Operating Commitment of the
Domestic Lenders under the Canadian Operating Facility shall be deemed to have
been increased by the amount of the Accommodations Outstanding under the
Canadian Swingline Facility; (ii) the Swingline Lender's Canadian Operating
Commitment shall be deemed to have been increased by the amount of the
Accommodations Outstanding under the Canadian Swingline Facility; (iii) the
amount of the Canadian Swingline Commitment shall be reduced to zero, and (iv) a
Borrowing of Advances under the Canadian Operating Facility (each such
Borrowing, a "CANADIAN MANDATORY BORROWING") shall be made on the next Business
Day by all Domestic Lenders with Canadian Operating Commitments so that
immediately after such Canadian Mandatory Borrowing, each such Lender shall
share rateably in the Accommodations Outstanding under the Canadian Operating
Facility (based on their respective Lender's Canadian Operating Commitments
after giving effect to the deemed increases referred to in (i) and (ii)) and the
proceeds thereof shall be applied directly by the Administrative Agent to repay
the Accommodations Outstanding under the Canadian Swingline Facility. Each
relevant Domestic Lender shall make Advances pursuant to a Canadian Mandatory
Borrowing in the amount and in the manner specified in writing by the
Administrative Agent notwithstanding (iv) that the amount of the Canadian
Mandatory Borrowing may not comply with the minimum amount of Borrowings
otherwise required under this Agreement, (v) that the conditions precedent
specified in Article 6 are not satisfied, (vi) the date of the Canadian
Mandatory Borrowing, and (vii) any reduction in the Canadian Operating
Commitment after any Advances under the Canadian Swingline Commitment were made.
If any Canadian Mandatory Borrowing cannot for any reason be made on the date
required above or the applicable Domestic Lenders for any reason would not at
such time share rateably in the aggregate amount of the Accommodations
Outstanding under the Canadian Swingline Facility and the Canadian Operating
Facility, each Domestic Lender with Canadian Operating Commitments hereby agrees
that it shall forthwith purchase from the Swingline Lender, and each other
Domestic Lender with Canadian Operating

<PAGE>   44
                                      -43-

Commitments, such participations in the Advances outstanding under the Canadian
Operating Facility as shall be necessary to cause such Lenders to share in such
Advances rateably, based upon the proportion which each such Lender's Operating
Commitment at the date of the Canadian Mandatory Borrowing bears to the
aggregate amount of the Canadian Operating Commitment and the Canadian Swingline
Commitment on the date of the Canadian Mandatory Borrowing.

         (10) The U.S. Alternate Operating Lender shall not make an
Accommodation under the U.S. Alternate Operating Facility after it has received
written notice from the Administrative Agent that an Event of Default has
occurred and is continuing. Upon receipt of such notice, the U.S. Alternate
Operating Lender shall advise the Administrative Agent of the amount of
Accommodations Outstanding under the U.S. Alternate Operating Facility. In such
event (i) the U.S. Operating Commitment of the Foreign Lenders under the U.S.
Operating Facility shall be deemed to have been increased by the amount of the
Accommodations Outstanding under the U.S. Alternate Operating Facility, (ii) the
U.S. Alternate Operating Lender's U.S. Operating Commitment shall be deemed to
have been increased by the amount of the Accommodation Outstanding under the
U.S. Alternate Operating Facility; (iii) the amount of the U.S. Alternate
Operating Commitment shall be reduced to zero, and (iv) a Borrowing of Advances
under the U.S. Operating Facility (each such Borrowing, a "U.S. MANDATORY
BORROWING") shall be made on the next Business Day by all Foreign Lenders with
U.S. Operating Commitments so that immediately after such U.S. Mandatory
Borrowing, each Foreign Lender shall share rateably in the Accommodations
Outstanding under the U.S. Operating Facility (based on their respective
Lender's U.S. Operating Commitments after giving effect to the deemed increases
referred to in (i) and (ii)) and the proceeds thereof shall be applied directly
by the Administrative Agent to repay the Accommodations Outstanding under the
U.S. Alternate Operating Facility. Each relevant Foreign Lender shall make
Advances pursuant to a U.S. Mandatory Borrowing in the amount and in the manner
specified in writing by the Administrative Agent notwithstanding (v) that the
amount of the U.S. Mandatory Borrowing may not comply with the minimum amount of
Borrowings otherwise required under this Agreement, (vi) that the conditions
precedent specified in Article 6 are not satisfied, (vii) the date of the U.S.
Mandatory Borrowing, and (viii) any reduction in the U.S. Operating Commitment
after any Advances under the U.S. Alternate Operating Commitment were made. If
any U.S. Mandatory Borrowing cannot for any reason be made on the date required
above or the applicable Foreign Lenders for any reason would not at such time
share rateably in the aggregate amount of the Accommodations Outstanding under
the U.S. Alternate Operating Facility and the U.S. Operating Facility, each
Foreign Lender with a U.S. Operating Commitment hereby agrees that it shall
forthwith purchase from the U.S. Alternate Operating Lender, and each other
Foreign Lender with a U.S. Operating Commitment, such participations in the
Advances outstanding under the U.S. Operating Facility as shall be necessary to
cause such Foreign Lender to share in such Advances rateably, based upon the
proportion which each

<PAGE>   45
                                      -44-

such Lender's U.S. Operating Commitment at the date of the U.S. Mandatory
Borrowing bears to the aggregate amount of the U.S. Operating Commitment and the
U.S. Alternate Operating Commitment on the date of the U.S. Mandatory Borrowing.

         SECTION 3.02. PROCEDURE FOR BORROWING.

         (1) Subject to Subsection 3.02(2), each Borrowing shall be made on the
number of days prior notice specified in Schedule 5, given not later than (i)
12:00 noon (Toronto time) in the case of the Canadian Term Facility, the
Canadian Acquisition Facility, the Canadian Operating Facility and the U.S.
Operating Facility by the relevant Borrower to the Administrative Agent. Each
notice of a Borrowing (a "BORROWING NOTICE") shall be in substantially the form
of Schedule 1, shall be irrevocable and binding on the Borrower and shall
specify (i) the Borrower, (ii) the requested date of the Borrowing, (iii) the
Type of Advances comprising the Borrowing, (iv) the Credit Facility under which
the Borrowing is to be made, (v) the aggregate amount of the Borrowing and the
currency thereof, and (vi) in the case of a Libor Rate Advance, the initial
Libor Interest Period. Upon receipt by the Administrative Agent of funds from
the Lenders and fulfilment of the applicable conditions set forth in Article 6,
the Administrative Agent will make such funds available to the Borrower in
accordance with Article 2.

         (2) Borrowings under the Canadian Swingline Facility up to a maximum
amount of the Canadian Swingline Commitment may be made without notice from
Bracknell or State by overdraft only in the Borrowers' Accounts of Bracknell or
State and shall be made available by the Swingline Lender by crediting the
Borrowers' Account with previous day funds in the aggregate amount of such
overdraft.

         (3) Borrowings under the U.S. Alternate Operating Facility up to a
maximum amount of the U.S. Alternate Operating Commitment may be made on same
day notice by Nationwide not later than 3:00 p.m. Toronto time to the U.S.
Alternate Operating Lender.

         SECTION 3.03. CONVERSIONS AND ELECTIONS REGARDING ADVANCES.

         (1) Each Advance shall initially be the Type of Advance specified in
the applicable Borrowing Notice and shall bear interest at the rate applicable
to that Type of Advance (determined as provided in Section 3.05) until (i) in
the case of a Libor Rate Advance, the end of the initial Libor Interest Period
specified in the applicable Borrowing Notice, (ii) in the case of a Floating
Rate Advance, the date on which the Advance is repaid in full or is changed to
another Type of Advance pursuant to Section 3.03(2), or (iii) in the case of any
Advance, it is converted to another Type of Accommodation pursuant to Section
3.03(2).

<PAGE>   46
                                      -45-

         (2) A Borrower may elect to (i) change any Advance to another Type of
Advance in accordance with Section 3.03(3) or convert an Advance of any currency
to another Type of Accommodation of such same currency (other than a Documentary
Credit) upon the number of days notice specified in Schedule 5 (y) in the case
of a Floating Rate Advance, as of any Business Day, and (z) in the case of a
Libor Advance, as of the last day of the Libor Interest Period applicable to the
Libor Rate Advance, or (ii) continue any Libor Rate Advance for a further Libor
Interest Period beginning on the last day of the then current Libor Interest
Period in accordance with Section 3.03(3).

         (3) Each election to change from one Type of Advance to another Type of
Advance or Type of Accommodation or to continue a Libor Rate Advance for a
further Libor Interest Period shall be made on the number of days prior notice
specified in Schedule 5 given, in each case, not later than 12:00 noon (Toronto
time) in the case of the Term Facilities, the Acquisition Facilities and the
Operating Facilities by the relevant Borrower to the Administrative Agent. Each
such notice (an "ELECTION NOTICE") shall be given substantially in the form of
Schedule 2 and shall be irrevocable and binding upon the Borrower. If a Borrower
fails to deliver an Election Notice to the Administrative Agent for any Libor
Rate Advance as provided in this Section 3.03(3), the Libor Rate Advance shall
be converted (as of the last day of the applicable Libor Interest Period) to and
be outstanding as (i) a U.S. Base Rate Advance in the case of a Libor Rate
Advance by a Domestic Lender, or (ii) U.S. Prime Rate Advance in the case of a
Libor Rate Advance by a Foreign Lender. A Borrower shall not select a Libor
Interest Period which conflicts with the definition of Libor Interest Period in
Section 1.01 or, in the opinion of the Administrative Agent, with the repayment
schedule in Section 2.04.

         SECTION 3.04. CIRCUMSTANCES REQUIRING PRIME RATE PRICING.

         If (i) by reason of circumstances affecting financial markets
generally, deposits of U.S. Dollars are unavailable to the relevant Lenders,
(ii) adequate and fair means do not exist for ascertaining the applicable
interest rate on the basis provided in the definition of Libor Rate or U.S. Base
Rate, as the case may be, (iii) the making or continuation of any U.S. Dollar
Advances or obligations of the Lenders in connection therewith has been made
impracticable or unlawful (y) by the occurrence of a contingency (other than a
mere increase in rates payable by a Lender to fund the Advances) affecting
financial markets or institutions generally and which materially adversely
affects the funding of the Credit Facilities at any interest rate computed on
the basis of the Libor Rate or the U.S. Base Rate, as the case may be, or (z) by
reason of a change since the date of this Agreement in any applicable law, rule,
regulation, order, treaty or official direction, or in the interpretation
thereof by any Governmental Entity (whether or not having the force of law but,
if not having the force of law, one with which a responsible bank would comply)
affecting financial markets or institutions generally and which results in

<PAGE>   47
                                      -46-

the Libor Rate or the U.S. Base Rate, as the case may be, no longer representing
the effective cost to the Lenders of deposits in the market, then,

(a)      the right of a Borrower to select any affected Type of Advance shall be
suspended until the circumstances causing the suspension no longer exist and the
Administrative Agent so notifies the Borrower;

(b)      if any affected Type of Advance is not yet outstanding, any applicable
Accommodation Notice shall be cancelled and the requested Advance shall not be
made;

(c)      if a Libor Rate Advance is already outstanding at any time when the
right of a Borrower to select Libor Rate Advances is suspended, it and all other
Libor Rate Advances in the same Borrowing shall become U.S. Base Rate Advances
or U.S. Prime Rate Advances, as the case may be, on the last day of the then
current Interest Period (or on such earlier date as may be required to comply
with any applicable law, rule, regulation, judgment or order) or, if the
Borrower does not have the right to select U.S. Base Rate Advances at such time,
the Libor Rate Advance shall become a Canadian Prime Rate Advance on the last
day of the then current Libor Interest Period applicable to it (or on such
earlier date as may be required to comply with any applicable law, rule,
regulation, judgment or order) in a principal amount equal to the Equivalent
Cdn. $ Amount of the Libor Rate Advance determined on the date on which the
Advance becomes denominated in Canadian Dollars; and

(d)      if any U.S. Base Rate Advance is already outstanding at any time when
the right of a Borrower to select U.S. Base Rate Advances is suspended, it and
all other U.S. Base Rate Advances included in the same Borrowing shall become
Canadian Prime Rate Advances immediately, in a principal amount equal to the
Equivalent Cdn. $ Amount of the related U.S. Base Rate Advance determined on the
date on which the Advance becomes denominated in Canadian Dollars.

         SECTION 3.05. INTEREST ON ADVANCES.

         (1) The Borrowers shall pay interest on the unpaid principal amount of
each Advance from the date of the Advance until the principal amount of the
Advance is repaid in full, at the following rates per annum:

(a)      if and so long as the Advance is a Canadian Prime Rate Advance, at a
rate per annum equal at all times to the sum of the Canadian Prime Rate in
effect from time to time plus the Applicable Margin;

(b)      if and so long as the Advance is a U.S. Base Rate Advance, at a rate
per annum equal at all times to the U.S. Base Rate in effect from time to time
plus the Applicable Margin;

<PAGE>   48
                                      -47-

(c)      if and so long as the Advance is a U.S. Prime Rate Advance, at a rate
per annum equal at all times, to the U.S. Prime Rate in effect from time to
time, plus the Applicable Margin; and

(d)      if and so long as the Advance is a Libor Rate Advance, at a rate per
annum equal at all times during each Libor Interest Period for such Libor Rate
Advance, to the sum of the Libor Rate for such Libor Interest Period plus the
Applicable Margin.

         (2) Interest on Canadian Prime Rate Advances, U.S. Base Rate Advances
and U.S. Prime Rate Advances shall be calculated and payable in arrears (i) on
the first Business Day of each month, and (ii) when the Advance becomes due and
payable in full, is repaid, or is converted to another Type of Advance or
Accommodation. Interest on Libor Rate Advances shall be calculated and payable
(ii) on the last day of the third month of the Libor Interest Period, if the
Libor Interest Period is six months, and (iv) on the last day of the Libor
Interest Period.

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

<PAGE>   49
                                      -48-

                                   ARTICLE 4

                              BANKERS' ACCEPTANCES

         SECTION 4.01. ACCEPTANCES AND DRAFTS.

         (1) Each Domestic Lender, in respect of such Lender's Canadian
Operating Commitment (if any), Canadian Acquisition Commitment and Canadian Term
Commitment, severally agrees, on the terms and conditions of this Agreement and
from time to time on any Business Day prior to the Relevant Repayment Date (i)
in the case of a Domestic Lender which is willing and able to accept Drafts, to
create acceptances ("Bankers' Acceptances") by accepting Drafts and to purchase
such Bankers' Acceptances in accordance with Section 4.03(2), and (ii) in the
case of a Domestic Lender which is unwilling or unable to accept Drafts, to
purchase completed Drafts (which have not and will not be accepted by the Lender
or any other Lender) in accordance with Section 4.03(2).

         (2) Each Drawing shall consist of the creation and purchase of Bankers'
Acceptances or the purchase of Drafts on the same day, in each case for the
Drawing Price, effected or arranged by the relevant Domestic Lenders in
accordance with Section 4.03 and their respective Lender's Commitment.

         (3) If the Administrative Agent determines that the Bankers'
Acceptances to be created and purchased or Drafts to be purchased on any Drawing
(upon a conversion or otherwise) will not be created and purchased rateably by
the relevant Domestic Lenders in accordance with Sections 4.01(2) and 4.03, then
the requested Face Amount of Bankers' Acceptances and Drafts shall be reduced to
such lesser amount as the Administrative Agent determines will permit rateable
sharing and the amount by which the requested Face Amount shall have been so
reduced shall be converted or continued, as the case may be, as a Canadian Prime
Rate Advance under the Canadian Operating Facility, Canadian Acquisition
Facility or Canadian Term Facility, as the case may be, to be made
contemporaneously with the Drawing.

         SECTION 4.02. FORM OF DRAFTS.

         Each Drawing presented by State or Bracknell, as the case may be, shall
(i) be in a minimum amount of Cdn. $2,000,000 and in an integral multiple of
Cdn. $1,000,000, (ii) be dated the date of the Drawing, and (iii) mature and be
payable by such Borrower (in common with all other Drafts presented in
connection with such Drawing) on a Business Day which occurs approximately 1, 2,
3 or 6 months at the election of the Borrower after the Drawing Date and on or
prior to the Relevant Repayment Date and which would not, in the opinion of the
Administrative Agent, conflict with the repayment schedule set out in Section
2.04.
<PAGE>   50
                                      -49-

         SECTION 4.03. PROCEDURE FOR DRAWING.

         (1) Each Drawing shall be made on notice (a "DRAWING NOTICE") given by
Bracknell or State, as the case may be, to the Administrative Agent not later
than 10:00 a.m. (Toronto time) on the number of days notice specified in
Schedule 5. Each Drawing Notice shall be in substantially the form of Schedule
3, shall be irrevocable and binding on such Borrower and shall specify (i) the
Borrower, (ii) the Drawing Date, (iii) the Credit Facility under which the
Drawing is to be made, (iv) the aggregate Face Amount of Drafts to be accepted
and purchased (or purchased, as the case may be), and (v) the contract maturity
date for the Drafts.

         (2) Not later than 2:00 p.m. (Toronto time) on an applicable Drawing
Date, each Domestic Lender shall complete one or more Drafts in accordance with
the Drawing Notice and either (i) accept the Drafts and purchase the Bankers'
Acceptances thereby created for the Drawing Price, or (ii) purchase such Drafts
for the Drawing Price, and, in each case, pay to the Administrative Agent the
Drawing Proceeds in respect of such Bankers' Acceptance or Draft, as the case
may be. Upon receipt of the Drawing Proceeds and upon fulfilment of the
applicable conditions set forth in Article 6, the Administrative Agent shall
make funds available to Bracknell or State, as the case may be, in accordance
with Article 2.

         (3) Each of Bracknell and State shall, at the request of any Domestic
Lender, issue one or more non-interest bearing promissory notes (each a "BA
EQUIVALENT NOTE") payable on the date of maturity of the unaccepted Draft
referred to below, in such form as the Lender may specify and in a principal
amount equal to the Face Amount of, and in exchange for, any unaccepted Drafts
which the Lender has purchased or has arranged to have purchased in accordance
with Section 4.03(2).

         (4) Bankers' Acceptances purchased by a Domestic Lender may be held by
it for its own account until the contract maturity date or sold by it at any
time prior to that date in any relevant Canadian market in such Person's sole
discretion.

         SECTION 4.04. PRESIGNED DRAFT FORMS.

         (1) To enable the Domestic Lenders to create Bankers' Acceptances or
complete Drafts in the manner specified in this Article 4, Bracknell and State
shall each supply each Domestic Lender with such number of Drafts as it may
reasonably request, duly endorsed and executed on behalf of such Borrower. Each
Lender will exercise such care in the custody and safekeeping of Drafts as it
would exercise in the custody and safekeeping of similar property owned by it
and will, upon request by a Borrower, promptly advise the Borrower of the number
and

<PAGE>   51
                                      -50-

designations, if any, of uncompleted Drafts held by it for the Borrower. The
signature of any officer of a Borrower on a Draft may be mechanically reproduced
and BA Instruments bearing facsimile signature shall be binding upon such
Borrower as if they had been manually signed. Even if the individuals whose
manual or facsimile signature appears on any BA Instrument no longer hold office
at the date of signature, at the date of its acceptance by the Lender or at any
time after such date, any BA Instrument so signed shall be valid and binding
upon the Borrower.

         (2) Each of Bracknell and State hereby irrevocably appoints each
Domestic Lender as its attorney to sign and endorse on its behalf, manually or
by facsimile or mechanical signature, any Drafts necessary to enable such Lender
to make Drawings in the manner specified in this Article 4. All Bankers'
Acceptances signed or endorsed on a Borrower's behalf by a Lender shall be
binding on such Borrower, all as if duly executed and issued by the Borrower.

         SECTION 4.05. PAYMENT, CONVERSION OR RENEWAL OF BA INSTRUMENTS.

         (1) Upon the maturity of a BA Instrument, a Borrower may (i) elect to
issue a replacement BA Instrument by giving a Drawing Notice in accordance with
Section 4.03(1), (ii) elect to have all or a portion of the Face Amount of the
BA Instrument converted to a Prime Rate Advance by giving a Borrowing Notice in
accordance with Section 3.02, or (iii) pay, on or before 10:00 a.m. (Toronto
time) on the maturity date for the BA Instrument, an amount in Canadian Dollars
equal to the Face Amount of the BA Instrument (notwithstanding that a Lender may
be the holder of it at maturity). Any such payment shall satisfy the Borrower's
obligations under the BA Instrument to which it relates and the relevant Lender
shall then be solely responsible for the payment of the BA Instrument.

         (2) If a Borrower fails to pay any BA Instrument when due or issue a
replacement in the Face Amount of such BA Instrument pursuant to Section
4.05(1), the unpaid amount due and payable shall be converted to a Canadian
Prime Rate Advance made by the Domestic Lenders rateably under the applicable
Credit Facility and shall bear interest calculated and payable as provided in
Article 3. This conversion shall occur as of the due date and without any
necessity for the Borrower to give a Borrowing Notice.

         SECTION 4.06. CIRCUMSTANCES MAKING BANKERS' ACCEPTANCES UNAVAILABLE.

         (1) If, by reason of circumstances affecting the money market
generally, there is no market for Bankers' Acceptances, (i) the right of the
Borrowers to request a Drawing shall be suspended until the circumstances
causing a suspension no longer exist, and (ii) any Drawing Notice which is
outstanding shall

<PAGE>   52
                                      -51-

be deemed to be a Borrowing Notice requesting a Borrowing comprised of Canadian
Prime Rate Advances.

         (2) The Administrative Agent shall promptly notify the relevant
Borrower of the suspension of the Borrower's right to request a Drawing and of
the termination of any suspension.

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

<PAGE>   53
                                      -52-

                                   ARTICLE 5

                               DOCUMENTARY CREDITS

         SECTION 5.01. DOCUMENTARY CREDITS.

         (1) The Domestic Issuing Lender agrees, on the terms and conditions of
this Agreement and in reliance on the agreements of the other Lenders with
Canadian Operating Commitments, to issue Documentary Credits under the Canadian
Operating Facility only for the account of Bracknell or State from time to time
on any Business Day prior to the Relevant Repayment Date.

         (2) The Foreign Issuing Lender agrees, on the terms and conditions of
this Agreement and in reliance on the agreements of the other Lenders with U.S.
Operating Commitments, to issue Documentary Credits under the U.S. Operating
Facility only for the account of Nationwide from time to time on any Business
Day prior to the Relevant Repayment Date.

         (3) The letters of credit and letters of guarantee issued by Royal Bank
of Canada for the account of any of the Borrowers and outstanding on the date of
this Agreement shall be deemed to be Documentary Credits issued pursuant to this
Agreement upon the making of the Initial Accommodation hereunder.

         (4) The aggregate Face Amount of all Documentary Credits issued under
the Operating Facilities shall not, at any time, exceed U.S. $10,000,000.

         SECTION 5.02. PROCEDURE FOR ISSUE.

         (1) Each Issue shall be made on notice (an "ISSUE NOTICE") given by a
Borrower to the Administrative Agent (with a copy to the Issuing Lender) not
later than 11:00 a.m. (Toronto time) on the number of days notice specified in
Schedule 5. The Issue Notice shall be in substantially the form of Schedule 4,
shall be irrevocable and binding on the Borrower and shall specify (i) the
Issuing Lender, (ii) the Borrower, (iii) the Credit Facility under which the
Documentary Credit is to be issued, (iv) the requested date of Issue (the "ISSUE
DATE"), (v) the Type of Documentary Credit, (vi) the Face Amount of the
Documentary Credit, (vii) the expiration date, and (viii) the name and address
of the Beneficiary. A Borrower shall not request an expiry date for a
Documentary Credit which would be after the Relevant Repayment Date.

         (2) Not later than 10:00 a.m. (Toronto time) on the Issue Date, the
relevant Issuing Lender shall issue a Documentary Credit completed in accordance
with the Issue Notice in the appropriate form. Upon receipt of the Documentary
Credit and upon fulfillment of the conditions set forth in Article 6, the
Issuing

<PAGE>   54
                                      -53-

Lender shall deliver the Documentary Credits to or to the order of the
applicable Borrower.

         (3) No Documentary Credit shall require that payment against a
conforming draft be made on the same Business Day upon which the draft was
presented, unless such presentation is made before 10:00 a.m. (Toronto time) on
such Business Day.

         (4) Prior to the Issue Date, the relevant Borrower shall provide a
precise description of the documents and the verbatim text of any certificates
to be presented by the Beneficiary which, if presented by the Beneficiary, would
require an Issuing Lender to make payment under the Documentary Credit. The
Issuing Lender may require changes in any such document or certificate.

         SECTION 5.03. FORM OF DOCUMENTARY CREDITS.

         Each Documentary Credit (i) shall be dated the Issue Date, (ii) shall
have an expiration date on a Business Day which occurs no more than 364 days
after the Issue Date and not after the Relevant Repayment Date, and (iii) shall
comply with the definition of Documentary Credit.

         SECTION 5.04. USE OF DOCUMENTARY CREDITS.

         The Borrowers shall use Documentary Credits for the sole purpose of
supporting (i) performance, payment, deposit or surety obligations of a
Borrower, in any case if required by law or contract or in accordance with
custom and practice in its industry, or (ii) the replacement of Documentary
Credits existing on the Closing Date.

         SECTION 5.05. REIMBURSEMENT OF AMOUNTS DRAWN.

         (1) At or before 10:00 a.m. (Toronto time) on the date specified by a
Beneficiary as a drawing date under a Documentary Credit, the relevant Borrower
shall pay to the Issuing Lender an amount in same day funds equal to the amount
to be drawn by the Beneficiary in the currency in which the Documentary Credit
is payable.

         (2) If a Borrower fails to pay to the Issuing Lender the amount drawn
under any Documentary Credit, the Issuing Lender shall advise immediately the
Administrative Agent and the unpaid amount due and payable shall be converted
automatically as of such date, and without the necessity for the Borrower to
give any Borrowing Notice pursuant to Section 3.02, to (i) a Canadian Prime Rate
Advance, in the case of a Documentary Credit denominated in Canadian Dollars and
issued by the Domestic Issuing Lender, (ii) a U.S. Base Rate Advance, in the
case of a

<PAGE>   55
                                      -54-

Documentary Credit denominated in U.S. Dollars and issued by the Domestic
Issuing Lender, and (iii) a U.S. Prime Rate Advance, in the case of a
Documentary Credit denominated in U.S. Dollars and issued by the Foreign Issuing
Lender, in each case made by the Domestic Lenders rateably under the Canadian
Operating Facility and by the Foreign Lenders rateably under the U.S. Operating
Facility.

         SECTION 5.06. DOCUMENTARY CREDIT PARTICIPATION.

         (1) In relation to each Documentary Credit issued or deemed to be
issued under the Operating Facilities, each Lender under the applicable
Operating Facility shall acquire from the Domestic Issuing Lender or the Foreign
Issuing Lender, as the case may be, for such Lender's own account and risk, an
undivided interest equal to such Lender's pro rata share of the relevant Issuing
Lender's obligations and rights under such Documentary Credit together with any
amount paid by an Issuing Lender under such Documentary Credit. If an amount is
drawn under any Documentary Credit issued or deemed to be issued under either of
the Operating Facilities and an Issuing Lender is not reimbursed in full by the
relevant Borrower in accordance with the terms of this Agreement or if the
amount is converted to an Advance pursuant to Section 5.05, each of the Lenders
under the relevant Operating Facility shall pay to the applicable Issuing
Lender, upon demand, an amount equal to such Lender's pro rata share of the
amount which is not so reimbursed or shall acquire its pro rata share of the
Advance into which the amount is converted, as the case may be.

         (2) If any amount required to be paid by a Lender under either of the
Operating Facilities to an Issuing Lender pursuant to Section 5.06(1) is not
paid to the Issuing Lender on the date the payment is due, the Lender shall pay
to the Issuing Lender, on demand, such amount together with interest, from the
date the payment was to be made until the date it is actually made, at the
prevailing interbank rate. A certificate of the relevant Issuing Lender,
submitted to the relevant Lender with respect to any amounts owing under this
Section shall be conclusive, absent manifest error.

         (3) If, at any time after an Issuing Lender has made a payment under
any Documentary Credit issued under an Operating Facility and has received from
the other Lenders their pro rata share of such payment, the Issuing Lender
receives a payment in respect of such Documentary Credit (whether directly from
a Borrower or otherwise), the Issuing Lender will pay to the Administrative
Agent for distribution to the other Lenders, their pro rata share of such
payment; provided, however, that if any such payment so received by the Issuing
Lender shall be required to be returned by the Issuing Lender, each other Lender
shall return to the Issuing Lender the portion thereof previously distributed to
it.

<PAGE>   56
                                      -55-

         SECTION 5.07. RISK OF DOCUMENTARY CREDITS.

         (1) In determining whether to pay under a Documentary Credit, each
Issuing Lender shall be responsible only to determine that the documents and
certificates required to be delivered under the Documentary Credit have been
delivered and that they comply on their face with the requirements of the
Documentary Credit.

         (2) The reimbursement obligation of the Borrowers under any Documentary
Credit shall be unconditional and irrevocable and shall be paid strictly in
accordance with the terms of this Agreement under all circumstances, including
(i) any lack of validity or enforceability of a Documentary Credit, (ii) the
existence of any claim, set-off, defence or other right which a Borrower may
have at any time against a Beneficiary, a Lender or any other Person, whether in
connection with the Credit Documents and the transactions contemplated therein
or any other transaction (including any underlying transaction between a
Borrower and the Beneficiary), (iii) any certificate or other document presented
with a Documentary Credit proving to be forged, fraudulent or invalid or any
statement in it being untrue or inaccurate, (iv) the existence of any act or
omission or any misuse of a Documentary Credit or misapplication of proceeds by
the Beneficiary, including any fraud in any certificate or other document
presented with a Documentary Credit, (v) payment by an Issuing Lender under the
Documentary Credit against presentation of a certificate or other document which
does not comply with the terms of the Documentary Credit; in each case unless
such payment constitutes gross negligence or willful misconduct of the Issuing
Lender, or (vi) the existence of a Default or Event of Default.

         (3) No Issuing Lender shall be responsible for (i) the validity or
sufficiency of any instrument transferring or assigning or purporting to
transfer or assign a Documentary Credit or the rights or benefits under it or
proceeds of it, in whole or in part, which may prove to be invalid or
ineffective for any reason, (ii) errors, omissions, interruptions or delays in
transmission or delivery of any messages by mail, telecopy or otherwise, (iii)
errors in interpretation of technical terms, (iv) any loss or delay in the
transmission of any document required in order to make a drawing, and (v) any
consequences arising from causes beyond the control of the Issuing Lender,
including the acts or omissions, whether rightful or wrongful, of any
Governmental Entity. None of the above shall affect, impair, or prevent the
vesting of any of the Issuing Lenders' rights or powers under this Agreement.
Any action taken or omitted by any Issuing Lender under or in connection with
any Documentary Credit or the related certificates, if taken or omitted in good
faith, shall not put the Issuing Lender under any resulting liability to the
Borrowers provided that the Issuing Lender acts in accordance with the standards
of reasonable care specified in the Uniform Customs and Practice for Documentary
Credits (1993 Revision), ICC Publication 500 (or any replacement publication).

<PAGE>   57
                                      -56-

         SECTION 5.08. FEES.

         (1) Each Borrower shall pay to the Administrative Agent, for the
account of the relevant Lenders, a Fee at a rate equal to the Applicable Margin
calculated on the basis of the Face Amount of the Documentary Credit for the
period during which the Documentary Credit is outstanding. Such Fee shall be
calculated daily and payable prior to issuance on the Issue Date of issue of a
Documentary Credit in the currency in which the Documentary Credit is payable
and shall be non-refundable.

         (2) Each Borrower shall pay to the relevant Issuing Lender (for its own
account) a fronting Fee equal to the greater of (i) 0.125% per annum on the Face
Amount of the Documentary Credit issued under the Operating Facility for which
the Issuing Lender is contingently liable under this Agreement; and (ii) U.S.
$150.00. The fronting fee will be calculated daily and shall be payable prior to
issuance on the Issue Date of each Documentary Credit and shall be
non-refundable.

         (3) Each Borrower shall pay to the relevant Issuing Lender, upon the
issuance, amendment or transfer of any Documentary Credit issued by such Lender
and each drawing made under it, the Lender's standard and prevailing documentary
and administrative charges for issuing, amending, transferring or drawing under,
as the case may be, Documentary Credits of similar amount, term and risk.

         SECTION 5.09. REPAYMENTS.

         (1) If a Borrower is required to repay the Accommodations pursuant to
Article 2 or Article 9, then the Borrower shall pay to the Administrative Agent
for distribution to the Issuing Lender, to the extent required in those
Articles, an amount equal to the relevant Issuing Lender's contingent liability
in respect of (i) any outstanding Documentary Credit, and (ii) any Documentary
Credit which is the subject matter of any order, judgment, injunction or other
such determination (a "JUDICIAL ORDER") restricting payment under and in
accordance with such Documentary Credit or extending the Issuing Lender's
liability under such Documentary Credit beyond its stated expiration date.
Payment in respect of each Documentary Credit shall be due in the currency in
which the Documentary Credit is denominated.

         (2) Each Issuing Lender shall, with respect to any Documentary Credit,
upon the later of:

(a)      the date on which any final and non-appealable order, judgment or other
such determination has been rendered or issued either terminating the applicable
Judicial Order or permanently enjoining the Lender from paying under such
Documentary Credit; and

<PAGE>   58
                                      -57-

(b)      the earlier of (i) the date on which either (x) the original
counterpart of the Documentary Credit is returned to the Lender for
cancellation, or (y) the Lender is released by the Beneficiary from any further
obligations, and (ii) the expiry (to the extent permitted by any applicable law)
of the Documentary Credit,

pay to the relevant Borrower an amount equal to the difference between the
amount paid to the Issuing Lender pursuant to Section 5.09(1) and the amounts
paid by the Issuing Lender under the Documentary Credit.

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

<PAGE>   59
                                      -58-

                                   ARTICLE 6

                                   CONDITIONS

         SECTION 6.01. CONDITIONS PRECEDENT TO EFFECTIVENESS.

         This Agreement shall be effective subject to and upon the fulfillment
of the following conditions precedent:

(a)      no Default or Event of Default has occurred or is continuing;

(b)      the representations and warranties of the Borrowers contained in
Section 7.01 are true and correct on the date hereof;

(c)      the Administrative Agent has received, in form, substance and dated as
of a date satisfactory to the Lenders and their counsel and in sufficient
quantities for each Lender:

         A.       a certified copy of the resolutions of the board of directors
                  of each Borrower approving the amendments to the Amended and
                  Restated Credit Agreement and other matters contemplated by
                  this Agreement,

         B.       a certificate of a senior officer of each Borrower confirming
                  there have been no changes to the articles and by-laws of each
                  since the date of the Amended and Restated Credit Agreement,

         C.       a certificate of the Secretary of each Borrower certifying the
                  names and true signatures of its officers authorized to sign
                  this Agreement and the other Credit Documents,

         D.       a certificate of status, compliance or like certificate with
                  respect to each Borrower issued by the appropriate
                  Governmental Entity of the jurisdiction of its incorporation
                  and of each jurisdiction in which it owns any material assets
                  or carries on any material business,

         E.       copies of all corporate and lien searches undertaken against
                  each Borrower and each Restricted Subsidiary,

         F.       favourable opinions of counsel to each Borrower with respect
                  to such matters as may be requested by the Lenders,

         G.       a certificate from the chief financial officer of Nationwide
                  certifying that Nationwide (i) is not legally prohibited or

<PAGE>   60
                                      -59-

                  restricted from entering into and performing its obligations
                  under the Credit Documents to which it is a party, (ii) is not
                  insolvent, (iii) will not be rendered insolvent by virtue of
                  guaranteeing the obligations of the Borrowers under the Credit
                  Documents, (iv) will not be left with an unreasonably small
                  amount of capital, and (v) has not incurred Debt which cannot
                  be satisfied on a timely basis,

         H.       a confirmation in favour of the Administrative Agent executed
                  by the Borrowers and the Restricted Subsidiaries, confirming
                  the Security Documents are in full force and effect; and

         I.       such other certificates and documentation as the
                  Administrative Agent may reasonably request,

(d)      all fees and other amounts then payable under the Credit Documents have
been paid in full;

(e)      all obligations under the Credit Documents are secured by first
priority Liens on all property and assets of each Borrower and each Restricted
Subsidiary with such exceptions as are permitted pursuant to this Agreement or
any of the other Credit Documents;

(f)      nothing has occurred (nor has any Lender become aware of any facts not
previously known), including any change or condition, event or development,
which the Lenders determine is reasonably likely to have a Material Adverse
Effect;

(g)      there has not occurred, developed or come into effect or existence any
event, action, state, condition or major financial occurrence of national or
international consequence or any law, rule, regulation, judgment, order, inquiry
or other occurrence of any nature whatsoever which materially adversely affects,
or may materially adversely or seriously affect, the financial, banking
(including syndication markets) or capital markets in Canada or the United
States of America; and

(h)      all conditions precedent listed in Section 4.01 of the Bracknell
Limited Partnership Facility shall have been satisfied.

         SECTION 6.02. CONDITIONS PRECEDENT TO ACCOMMODATIONS AND CONVERSIONS.

         (1) The obligation of each Lender to make Accommodations or otherwise
give effect to any Accommodation Notice is subject to fulfillment of the
following conditions at the time of any Accommodation Notice or Accommodation,
as the case may be:

<PAGE>   61
                                      -60-

(a)      the representations and warranties of the Borrowers contained in
Section 7.01 are true and correct on the date of the Accommodation or
Accommodation Notice as if they were made on that date;

(b)      no Default or Event of Default has occurred or is continuing or would
arise immediately after giving effect to or as a result of the Accommodation or
Accommodation Notice;

(c)      the Accommodation will not violate any applicable law, rule,
regulation, judgment or order; and

         (2) Each of the giving of any Accommodation Notice by a Borrower and
the acceptance by a Borrower of any Accommodation shall be deemed to constitute
a representation and warranty by the Borrowers that, on the date of such
Accommodation Notice or Accommodation, as the case may be, and after giving
effect thereto and to the application of any proceeds therefrom, the statements
set forth in Section 6.02(1) are true and correct.

         SECTION 6.03. NO WAIVER.

         The making of an Accommodation or otherwise giving effect to any
Accommodation Notice, without the fulfillment of one or more conditions set
forth in Section 6.01 or 6.02 shall not constitute a waiver of any condition and
the Administrative Agent and the Lenders reserve the right to require
fulfillment of such condition in connection with any subsequent Accommodation
Notice or Accommodation.

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

<PAGE>   62
                                      -61-

                                   ARTICLE 7

                         REPRESENTATIONS AND WARRANTIES

         SECTION 7.01.     REPRESENTATIONS AND WARRANTIES.

         Each Borrower represents and warrants to each Lender, acknowledging and
confirming that each Lender is relying on such representations and warranties
without independent inquiry in entering into this Agreement and providing
Accommodations that:

(a)      INCORPORATION AND QUALIFICATION. Each Borrower is a corporation duly
incorporated, organized and validly existing under the laws of its jurisdiction
of incorporation as set forth in Schedule 7.01(p). At the date of this
Agreement, each of the Restricted Subsidiaries is a corporation duly
incorporated, organized and validly existing under the laws of its jurisdiction
of incorporation as set forth in Schedule 7.01(p). Each Borrower and each
Restricted Subsidiary is duly qualified, licensed or registered to carry on
business under the laws applicable to it in all jurisdictions in which failure
to be so qualified, licenced or registered would have a Material Adverse Effect.

(b)      CORPORATE POWER. Each of the Borrowers and the Restricted Subsidiaries
has all requisite corporate power and authority to (i) own, lease and operate
its properties and assets and to carry on its business as now being conducted by
it, and (ii) enter into and perform its obligations under the Credit Documents
to which it is a party.

(c)      CONFLICT WITH OTHER INSTRUMENTS. The execution and delivery by each
Borrower and each Restricted Subsidiary and the performance by each of them of
its respective obligations under, and compliance with the terms, conditions and
provisions of, the Credit Documents to which it is a party will not (i) conflict
with or result in a breach of any of the terms, conditions or provisions of (t)
its constating documents or by-laws, (u) any applicable law, rule or regulation,
(v) any contractual restriction binding on or affecting it or its properties, or
(w) any judgment, injunction, determination or award which is binding on it, or
(ii) result in, require or permit (x) the imposition of any Lien in, on or with
respect to any of its assets or property, (y) the acceleration of the maturity
of any debt binding on or affecting any Borrower or Restricted Subsidiary, or
(z) any third party to terminate or acquire rights under any Material Agreement.

(d)      CORPORATE ACTION, GOVERNMENTAL APPROVALS, ETC. The execution and
delivery of each of the Credit Documents by each Borrower and each Restricted
Subsidiary and the performance by the Borrowers and the Restricted Subsidiaries
of their respective obligations under the Credit Documents have been duly

<PAGE>   63
                                      -62-

authorized by all necessary corporate action including, without limitation, the
obtaining of all necessary shareholder consents. No authorization, consent,
approval, registration, qualification, designation, declaration or filing with
any Governmental Entity or other Person, is or was necessary in connection with
the execution, delivery and performance of obligations under the Credit
Documents except as are in full force and effect, unamended, at the date of this
Agreement.

(e)      EXECUTION AND BINDING OBLIGATION. This Agreement and the other Credit
Documents have been duly executed and delivered by each Borrower and each
Restricted Subsidiary which is a party thereto and constitute legal, valid and
binding obligations of each such Borrower and Restricted Subsidiary enforceable
against them in accordance with their respective terms, subject only to any
limitation under applicable laws relating to (i) bankruptcy, insolvency,
reorganization, moratorium or creditors' rights generally, and (ii) the
discretion that a court may exercise in the granting of equitable remedies.

(f)      LOCATION OF BUSINESS. At the date of this Agreement, the only
jurisdictions (or registration districts within such jurisdictions) in which a
Borrower or any Restricted Subsidiary has any place of business or stores any
tangible personal property are listed in Schedule 7.01(f).

(g)      AUTHORIZATIONS, ETC. Each of the Borrowers and each of the Restricted
Subsidiaries possess all authorizations, permits, consents, registrations and
approvals necessary to properly conduct their respective businesses at full
operating capacity. All authorizations, permits, consents, registrations and
approvals which are material to a Borrower or any Restricted Subsidiary at the
date of this Agreement are set forth in Schedule 7.01(g).

(h)      TRADEMARKS, PATENTS, ETC. Each of the Borrowers and each of the
Restricted Subsidiaries possesses all the trademarks, trade names, copyrights,
patents and licences reasonably necessary for the conduct of their respective
businesses. To the best knowledge of the Borrowers, no Borrower nor any of the
Restricted Subsidiaries is infringing or is alleged to be infringing on the
rights of any Person with respect to any patent, trademark, trade name,
copyright (or any application or registration in respect thereof) licence,
discovery, improvement, process, formula, know-how, data, plan or specification.

(i)      OWNERSHIP OF PROPERTY. Except for Permitted Liens, each of the
Borrowers and the Restricted Subsidiaries has good and marketable title in fee
simple to the Owned Properties and good, indefeasible and merchantable title to
all of its or their other properties and assets including, without limitation,
the tangible and intangible personal property reflected as assets in their books
and records. None of the Borrowers or any of the Restricted Subsidiaries (i)
owns any real property other than the Owned Properties, (ii) is bound by any
agreement to own or lease any real property except for the Leases, or, (iii) has
leased any of its Owned

<PAGE>   64
                                      -63-

Properties except pursuant to a Material Agreement. Each Borrower and each
Restricted Subsidiary owns, leases or has the lawful right to use all of the
assets necessary for the conduct of their respective businesses at full
operating capacity.

(j)      LEASED PROPERTIES. Each Lease is in good standing and all amounts owing
under it have been paid by a Borrower or Restricted Subsidiary, as applicable.

(k)      WORK ORDERS. There are no outstanding work orders relating to the
Subject Properties from or required by any Governmental Entity, nor do the
Borrowers have notice of any possible impending or future work order.

(l)      EXPROPRIATION. No part of any of the Subject Properties or the
Buildings and Fixtures located on the Subject Properties has been taken or
expropriated by any Governmental Entity, no written notice or proceeding in
respect of an expropriation been given or commenced nor are any of the Borrowers
aware of any intent or proposal to give any such notice or commence any
proceedings.

(m)      ENCROACHMENTS. Except for Permitted Liens or as specified in Schedule
7.01(m), the Buildings and Fixtures located at each of the Subject Properties
are located entirely within such Subject Property and are in conformity with
set-back and coverage requirements of all applicable Governmental Entities
except where failure to be so located or in conformity could not reasonably be
expected to have a Material Adverse Effect. There are no encroachments upon any
of the Subject Properties which could reasonably be expected to have a Material
Adverse Effect.

(n)      COMPLIANCE WITH LAWS. Except as set forth in Schedule 7.01(n), each of
the Subject Properties has been used, and each of the Borrowers and each of the
Restricted Subsidiaries is, in compliance in all material respects with all
applicable laws, rules, regulations, by-laws, judgments, orders, decisions and
awards including Environmental Laws.

(o)      NO DEFAULT. None of the Borrowers nor any of the Restricted
Subsidiaries is in violation of its constating documents, its by-laws or any
shareholders' agreement applicable to it.

(p)      SUBSIDIARIES, ETC. At the date of this Agreement (i) there are no
subsidiaries of Bracknell other than the subsidiaries identified as such in
Schedule 7.01(p), (ii) the share ownership of each of the Subsidiaries is as
described in Schedule 7.01(p), and (iii) the Borrowers and the Restricted
Subsidiaries are not, directly or indirectly, a member of, or participant in,
any partnership, joint venture or syndicate except as described in Schedule
7.01(p). None of the Borrowers or any of the Restricted Subsidiaries is an
unlimited liability company. Each of 1341996 Ontario Inc. and 1357248 Ontario
Inc. is a wholly-owned subsidiary of Bracknell,

<PAGE>   65
                                      -64-

carries on no business and has no assets or liabilities other than, in the case
of 1341996 Ontario Inc., assets held in trust for George L. Ploder and his
estate pursuant to a trust agreement dated March 8, 1999 between Bracknell and
1341996 Ontario Inc.

(q)      NO BURDENSOME AGREEMENTS. Except as set forth in Schedule 7.01(q), none
of the Borrowers nor any of the Restricted Subsidiaries is a party to any
agreement or instrument or subject to any restriction (including any restriction
set forth in its constating documents, by-laws or any shareholders' agreement
applicable to it) which could reasonably be expected to have a Material Adverse
Effect.

(r)      NO LITIGATION. Except as set forth in Schedule 7.01(r), there are no
material actions, suits, arbitrations or proceedings pending, taken or, to the
Borrowers' knowledge, threatened, before or by any Governmental Entity or other
Person affecting a Borrower or any Restricted Subsidiary. No law, rule,
regulation, by-law, decision, order or judgment which may affect a Borrower or
any of the Restricted Subsidiaries has been enacted, promulgated or applied
which challenges, or to the best knowledge of the Borrowers, has been proposed
which, in the reasonable opinion of the Majority Lenders, may challenge, the
validity or propriety of any Credit Document or the transactions contemplated
thereunder.

(s)      ENVIRONMENTAL COMPLIANCE. Except as set out in Schedule 7.01(s), none
of the Subject Properties or other property or assets under the charge,
management or control of a Borrower or any of the Restricted Subsidiaries (i)
has ever been used by it, or to the best of the knowledge of the Borrowers, by
any other Person, as a waste disposal site or a landfill, or (ii) to the best of
the knowledge of the Borrowers, has any asbestos-containing materials, PCBs,
radioactive substances or underground storage systems, active or abandoned
located on, at or under it at the date of this Agreement. Except as set out in
Schedule 7.01(s), there are no contaminants located on, at or under any of the
Subject Properties which are of a nature or in such quantities that the
Borrower, a Restricted Subsidiary or any of the Subject Properties could be
subject to a remedial order or clean-up order issued by a Governmental Entity at
the date of this Agreement. To the knowledge of the Borrowers, no properties
adjacent to any of the Subject Properties are contaminated where such
contamination could, if it migrated to a Subject Property, have a Material
Adverse Effect. Except as set out in Schedule 7.01(s), neither the Borrowers nor
any of the Restricted Subsidiaries sends any hazardous substances for recycling,
disposal, treatment or other processing outside of Canada or the United States
at the date of this Agreement.

(t)      PENSION PLANS. Except as notified to the Administrative Agent, Schedule
7.01(t) contains a list of all pension plans and Plans of the Borrowers and the
Restricted Subsidiaries. All contributions required under applicable law have
been made and each pension plan is fully funded on an ongoing and termination

<PAGE>   66
                                      -65-

basis. The Borrowers, the Subsidiaries of any of the Borrowers and their ERISA
Affiliates have fulfilled their respective obligations under the minimum funding
standards of Section 302 of ERISA and Section 412 of the Code with respect to
each Plan. None of the Borrowers nor any of the Subsidiaries of any of the
Borrowers nor any ERISA Affiliate has incurred any Withdrawal Liability. No
Multiemployer Plan is in reorganization or has been terminated within the
meaning of Title IV of ERISA. Each employee benefit plan of any Borrower or any
of their respective Subsidiaries intending to qualify under Section 401(a) of
the Code, has received a letter from the Internal Revenue Service stating that
such plan qualifies and no event has occurred which could reasonably result in
revocation of any such letter.

(u)      MATERIAL AGREEMENTS, ETC. As of the date of this Agreement, none of the
Borrowers nor any of the Restricted Subsidiaries is a party or otherwise subject
to or bound or affected by any Material Agreement, except as set out in Schedule
7.01(u). Except as set forth in Schedule 7.01(u), all such Material Agreements
are in full force and effect and none of the Borrowers or any of the Restricted
Subsidiaries, or to the best of the Borrowers' knowledge, any other party to any
Material Agreement has defaulted under any of the Material Agreements. To the
best of the Borrowers' knowledge, no event has occurred which, with the giving
of notice, lapse of time or both, would constitute a default under, or in
respect of, any Material Agreement. There is no dispute regarding any Material
Agreement which is not reasonably expected to be resolved in the ordinary course
of business and in accordance with normal commercial practice.

(v)      LABOUR MATTERS. Schedule 7.01(v) sets forth all labour contracts to
which the Borrowers or any Restricted Subsidiary is a party as of the date of
this Agreement. There are no existing or, to the best of the Borrowers'
knowledge, threatened strikes, lock-outs or other disputes (other than
non-material grievances) relating to any collective bargaining agreement to
which a Borrower or any Restricted Subsidiary is a party.

(w)      BOOKS AND RECORDS. All books and records of the Borrowers and the
Restricted Subsidiaries have been fully, properly and accurately kept and
completed in accordance with GAAP and there are no material inaccuracies or
discrepancies of any kind contained or reflected therein. The Borrowers' and the
Restricted Subsidiaries' records, systems, controls, data or information are not
recorded, stored, maintained, operated or otherwise wholly or partly dependent
upon or held by any means (including any electronic, mechanical or photographic
process, whether computerized or not) which (including all means of access
thereto and therefrom) are not under the direct control of the Borrowers. The
Borrowers and each of the Restricted Subsidiaries have (i) maintained all their
environmental and operating records in the manner and for the periods required
by applicable Environmental Law, and (ii) filed all reports which are required
by applicable Environmental Law to be filed on the happening of any reportable
event.

<PAGE>   67
                                      -66-

(x)      TAX LIABILITY. The Borrowers and each of the Restricted Subsidiaries
have filed all tax and information returns which are required to be filed and
the information contained in such returns is correct and complete and reflects
accurately all liability for taxes for the period covered. The Borrowers and
each of the Restricted Subsidiaries have paid all taxes, interest and penalties,
if any, which have become due pursuant to such returns or pursuant to any
assessment received by any of them other than those in respect of which
liability based on such returns is being contested in good faith and by
appropriate proceedings where adequate reserves have been established in
accordance with GAAP. Adequate provision for payment has been made for taxes not
yet due. There are no tax disputes existing or pending involving a Borrower, any
of the Restricted Subsidiaries or the Business which could reasonably be
expected to have a Material Adverse Effect.

(y)      CORPORATE STRUCTURE. At the date of this Agreement, the only
shareholders of Bracknell holding greater than 5% of the issued and outstanding
shares of Bracknell are as set forth in Schedule 7.01(y). Schedule 7.01(y) sets
forth the complete particulars at the date of this Agreement of (i) such
shareholders, (ii) the interest of each such shareholder and their respective
interests. Except as set forth in Schedule 7.01(y), at the date of this
Agreement none of the shareholders is a party to any unanimous shareholders or
other agreement relating to the shares owned by such shareholder.

(z)      FINANCIAL STATEMENTS. The October 31, 1998 audited consolidated and the
July 31, 1999 unaudited consolidated financial statements of Bracknell and the
March 31, 1999 audited consolidated financial statements and the June 30, 1999
unaudited consolidated financial statements of Nationwide, copies of each of
which have been furnished to the Administrative Agent and the Lenders, fairly
present the consolidated financial position of the Borrowers and the Restricted
Subsidiaries at such dates and the consolidated results of the operations and
changes in financial position of the Borrowers and the Restricted Subsidiaries
for such period, all in accordance with GAAP. Between July 31, 1999 and the
Closing Date, there has been no adverse change in the financial position or
results of operations of the Borrowers and the Restricted Subsidiaries.

(aa)     MARGIN STOCK. None of the Borrowers nor any of the Restricted
Subsidiaries is engaged in the business of extending credit for the purpose of
purchasing or acquiring any "margin stock" within the meaning of Regulation U
(12 CFR Part 221), of the Board of Governors of the Federal Reserve System
("MARGIN STOCK") and no proceeds of any Accommodation will be used to purchase
or carry any Margin Stock.

(bb)     INVESTMENT COMPANY ACT. None of the Borrowers nor any of the Restricted
Subsidiaries is an "investment company" within the meaning of the Investment
Company Act of 1940, as amended, or a "holding company", or a "subsidiary
company" of a "holding company", or an "affiliate" of a "holding

<PAGE>   68
                                      -67-

company", or of a "subsidiary company" of a "holding company" within the meaning
of the Public Utility Holding Company Act of 1935, as amended.

(cc)     DISCLOSURE. All (i) forecasts and projections supplied to the
Administrative Agent and the Lenders were prepared in good faith, adequately
disclosed all relevant assumptions and are reasonable, and (ii) other written
information supplied to the Administrative Agent and the Lenders is true and
accurate in all material respects. There is no fact known to the Borrowers which
could reasonably be expected to have a Material Adverse Effect and which has not
been fully disclosed to the Administrative Agent and the Lenders. No event has
occurred which could be reasonably anticipated to have a Material Adverse Effect
since the date of this Agreement.

         SECTION 7.02.     SURVIVAL OF REPRESENTATIONS AND WARRANTIES.

         The representations and warranties in this Agreement and in any
certificates or documents delivered to the Administrative Agent and the Lenders
shall not merge in or be prejudiced by and shall survive any Accommodation and
shall continue in full force and effect so long as any amounts are owing by the
Borrowers to the Lenders under this Agreement.

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

<PAGE>   69
                                      -68-

                                   ARTICLE 8

                            COVENANTS OF THE BORROWER

         SECTION 8.01.     AFFIRMATIVE COVENANTS.

         So long as (i) any amount owing under this Agreement remains unpaid or
any Lender has any obligation under this Agreement; and (ii) any amount owing
under the Bracknell Limited Partnership Facility remains unpaid or any Lender
(as defined in the Bracknell Limited Partnership Facility) has any obligation
thereunder and unless consent is given in accordance with Section 11.01, each of
the Borrowers shall:

(a)      FINANCIAL REPORTING. Deliver to the Administrative Agent (with
sufficient copies for each of the Lenders):

         (i)      as soon as practicable and in any event within 60 days after
                  the end of each of the first three Financial Quarters in each
                  Financial Year (y) a consolidated balance sheet of each of the
                  Borrowers as of the end of the Financial Quarter, and (z) the
                  related consolidated statements of earnings and changes in
                  financial position for the Financial Quarter and for the
                  period commencing at the end of the previous Financial Year
                  and ending with the end of the Financial Quarter; in each case
                  prepared in accordance with GAAP and (except for the statement
                  of changes in financial position) setting forth in comparative
                  form the figures for the corresponding Financial Quarter and
                  corresponding portion of the previous Financial Year;

         (ii)     as soon as practicable and in any event within 120 days after
                  the end of each Financial Year, a copy of the audited
                  consolidated financial statements of each of the Borrowers for
                  the Financial Year prepared in accordance with GAAP and
                  reported on by Bracknell's independent auditors;

         (iii)    together with each such delivery of financial statements, a
                  Compliance Certificate;

         (iv)     as soon as practicable and, in any event prior to the earlier
                  of (A) the date which is 10 days after approval of the Annual
                  Business Plan by the board of directors of Bracknell, and (B)
                  (y) 60 days after the end of the Financial Year ended October
                  31, 1999, or (z) 30 days after the end of each other Financial
                  Year, the

<PAGE>   70
                                      -69-

                  Annual Business Plan together with a detailed budget for the
                  following Financial Year providing supplementary detailed
                  schedules and information supplementary to and consistent with
                  such Annual Business Plan; and

         (v)      as soon as practicable and in any event within 45 days after
                  the end of each Financial Quarter or otherwise promptly at the
                  request of the Administrative Agent, a certificate of the
                  chief financial officer of Bracknell setting out, as of the
                  end of such Financial Quarter or otherwise as of the date of
                  the certificate, the Borrowers' Mark-to-Market Exposure under
                  all Hedging Agreements and all material terms of all Hedging
                  Agreements (including, without limitation, the parties, their
                  effective dates, notional amounts, currency, applicable rates,
                  amortization and maturity date) and such other information as
                  may be reasonably requested by the Administrative Agent to
                  verify the Borrowers' Mark-to-Market Exposure under the
                  Hedging Agreements.

(b)      ENVIRONMENTAL REPORTING. Promptly, and in any event within 10
days, deliver to the Administrative Agent (with sufficient copies for each of
the Lenders) a detailed statement describing any of the following occurrences:

         (i)      any order or judgment of any Governmental Entity requiring a
                  Borrower or any of the Restricted Subsidiaries to incur
                  Environmental Liabilities (w) in excess of $500,000 in any one
                  instance, (x) together with all other expenditures incurred in
                  respect of Environmental Liabilities in any Financial Year, in
                  excess of $500,000 in the aggregate,

         (ii)     any state of affairs on any of the Subject Properties or with
                  respect to the Business which could reasonably be expected to
                  result in the incurrence of Environmental Liabilities (y) in
                  excess of $500,000 in any one instance, or (z) together with
                  all other expenditures incurred in respect of Environmental
                  Liabilities in any Financial Year, in excess of $500,000 in
                  the aggregate, and

         (iii)    the action taken or proposed to be taken in connection with
                  such occurrences.

(c)      ADDITIONAL REPORTING REQUIREMENTS. Deliver to the Administrative Agent
(with sufficient copies for each of the Lenders):

         (i)      as soon as practicable, and in any event within one Business
                  Day after the occurrence of each Default or Event of Default,
                  a statement of the chief financial officer of Bracknell or any
                  other

<PAGE>   71
                                      -70-

                  officer acceptable to the Administrative Agent setting forth
                  the details of the Default or Event of Default and the action
                  which the Borrowers propose to take or have taken,

         (ii)     promptly in writing a notice of any previously undisclosed (u)
                  material actions, suits, arbitrations or proceedings pending,
                  taken or threatened before or by any Governmental Entity or
                  other Person affecting a Borrower or any Restricted
                  Subsidiary, (v) locations where contaminants generated by a
                  Borrower or any Restricted Subsidiary are disposed of, treated
                  or otherwise dealt with, (w) a material lease or an
                  acquisition of real property by a Borrower or any Restricted
                  Subsidiary, (x) material authorizations, permits or licences
                  which become necessary, (y) Material Agreements, and (z)
                  labour contracts or collective agreements of a Borrower or any
                  Restricted Subsidiary,

         (iii)    promptly in writing a notice of any default, or event,
                  condition or occurrence which with notice or lapse of time, or
                  both, would constitute a default under any agreement in
                  respect of Debt to which a Borrower or any of its Restricted
                  Subsidiaries is a party and under which a Borrower or any such
                  Subsidiary owes (contingently or otherwise) at least
                  $2,000,000 (or the equivalent amount in any other currency),

         (iv)     promptly in writing a notice of any waiver of any material
                  provision of, or, material amendment to, any Material
                  Agreement or any revocation or termination of, any Material
                  Agreement other than as a result of the completion of the
                  Material Agreement in accordance with its terms,

         (v)      promptly in writing a notice of any intended change of
                  auditors or the Financial Year and the reasons therefor,

         (vi)     promptly in writing a notice of any intended change of bonding
                  companies and the reasons therefor,

         (vii)    from time to time upon the reasonable request of the
                  Administrative Agent, evidence of the maintenance of all
                  insurance required to be maintained pursuant to this
                  Agreement, including originals or copies as the Administrative
                  Agent may reasonably request of policies, certificates of
                  insurance, riders, endorsements and proof of premium payments,

         (viii)   within 3 Business Days of a request therefor from the
                  Administrative Agent if the Administrative Agent has a good

<PAGE>   72
                                      -71-

                  faith concern that accounts payable to Subcontractors exceeds
                  5% of the Annualized Total Cost of Goods Sold, the certificate
                  described in Section 8.01(t) and otherwise comply with the
                  provisions thereof in respect of Priority Accounts Payable,

         (ix)     promptly upon their issuance, copies of all notices, reports,
                  press releases, circulars, offering documents and other
                  documents filed with, or delivered to, any stock exchange or
                  the Ontario Securities Commission or a similar Governmental
                  Entity in any other jurisdiction, and

         (x)      such other information respecting the condition or operations,
                  financial or otherwise, of the Business or a Borrower or any
                  Restricted Subsidiary as the Administrative Agent, on behalf
                  of the Lenders, may from time to time reasonably request.

(d)      CORPORATE EXISTENCE. Except as otherwise permitted in this Agreement,
preserve and maintain, and cause each of the Restricted Subsidiaries to preserve
and maintain, its corporate existence.

(e)      COMPLIANCE WITH LAWS, ETC. Comply, and cause each of the Restricted
Subsidiaries to comply with the requirements of all applicable laws, rules,
regulation, by-laws, judgments, orders, decisions and awards, non-compliance
with which could reasonably be expected to have a Material Adverse Effect.

(f)      STATUS OF ACCOUNTS AND COLLATERAL. With respect to the Collateral:

         (i)      maintain all books and records pertaining to the Collateral in
                  accordance with good business practice,

         (ii)     immediately notify the Administrative Agent if any account in
                  excess of $1,000,000 arises out of contracts with any
                  Governmental Entity, and execute any instruments and take any
                  steps required by the Majority Lenders in order that all
                  moneys due or to become due under the contract are assigned to
                  the Lenders and notice of such assignment to be given to the
                  Governmental Entity,

         (iii)    report immediately to the Administrative Agent any matters
                  materially adversely affecting the value, enforceability or
                  collectibility of any of the Collateral, and

         (iv)     if any amount payable under or in connection with any account
                  in excess of $500,000 is evidenced by a promissory note or
                  other instrument, immediately pledge, endorse, assign and
                  deliver to

<PAGE>   73
                                      -72-

                  the Lenders the promissory note or instrument, as additional
                  Collateral.

(g)      CREDIT POLICY AND ACCOUNTS RECEIVABLE. Maintain, at all times, credit
policies consistent with good business practices, adhere to such policies and
collect, and cause each of the Restricted Subsidiaries to collect, accounts
receivable in the ordinary course of business.

(h)      CONDUCT OF BUSINESS AND HEDGING POLICY. Conduct, and cause each of the
Restricted Subsidiaries to conduct, in each Financial Year, the Business in
accordance with good business practice; and maintain, and cause each of the
Restricted Subsidiaries to maintain, a hedging policy of not speculating in
commodities.

(i)      ENVIRONMENTAL INVESTIGATIONS. Promptly, if the Administrative Agent has
a good faith concern that a discharge of a contaminant has occurred or a
condition exists on any of the Subject Properties or with respect to the
Business or any of the Assets that could have a Material Adverse Effect, cause
to be conducted such environmental investigations (including without limitation,
environmental site assessments and environmental compliance reviews as are
reasonably required by the Administrative Agent) by an environmental consultant
approved by the Administrative Agent, such approval not to be unreasonably
withheld, and remedy any condition or non-compliance with Environmental Laws
revealed by any such investigation.

(j)      MAINTENANCE OF PROPERTIES, ETC. Maintain and preserve, and cause each
of the Restricted Subsidiaries to maintain and preserve, all of its and their
properties used or useful in its and their business in good repair, working
order and condition (reasonable wear and tear excepted) where failure to
maintain or preserve the properties in that state could reasonably be expected
to have a Material Adverse Effect. From time to time, make all needful and
proper repairs, renewals, replacements, additions and improvements to the
Subject Properties, so that the Business or business, as the case may be, may be
properly and advantageously conducted at all times in accordance with prudent
business management.

(k)      AUDITORS. Appoint and maintain as its auditors a firm of national
standing.

(l)      PAYMENT OF TAXES AND CLAIMS. Pay and discharge and cause each of the
Restricted Subsidiaries to pay and discharge, when due, (i) all taxes,
assessments and governmental charges or levies imposed upon it or upon its
income, sales, capital or profit or any other property belonging to it or upon
the Subsidiaries, and (ii) all claims which, if unpaid, might by law become a
Lien upon its assets except any such tax, assessment, charge, levy or claim
which is being contested in good faith and by proper proceedings and in respect
of which the

<PAGE>   74
                                      -73-

Borrowers or the Restricted Subsidiaries have established adequate reserves in
accordance with GAAP or which are Permitted Liens.

(m)      KEEPING OF BOOKS. Keep, and cause each of the Restricted Subsidiaries
to keep, proper books of record and account, in which full and correct entries
shall be made of all financial transactions and the assets and business in
accordance with GAAP.

(n)      VISITATION AND INSPECTION. At any reasonable time or times, permit each
Lender and the Administrative Agent to visit the properties of the Borrowers and
the Restricted Subsidiaries, and to discuss their affairs, finances and accounts
with the officer appointed as (or performing the functions of) the chief
financial officer of the Borrower.

(o)      MAINTENANCE OF INSURANCE. Maintain, in respect of itself and each of
the Restricted Subsidiaries, insurance (including environmental liability
insurance) at all times with responsible insurance carriers and in such amounts
and covering such risks as are usually carried by companies engaged in similar
businesses and owning similar properties in the same general areas in which the
Borrower or such Subsidiaries, as the case may be, operate, such policies to
show the Administrative Agent and the Lenders as a loss payee and additional
insured under a mortgagee clause in a form approved by the Insurance Bureau of
Canada and the equivalent governing body of the United States of America, as
applicable.

(p)      PROCEEDS. Use the proceeds of all Accommodations solely for the
purposes specified in Section 2.03.

(q)      YEAR 2000 COMPLIANCE. Ensure and cause each of the Restricted
Subsidiaries to ensure that all computer equipment and embedded systems and all
computer software used by the Borrowers and the Restricted Subsidiaries which
are material to the Business are or will be Millennium Compliant by December 31,
1999.

(r)      MAINTENANCE OF BONDING CAPACITY. Maintain, in respect of itself and
each of the Restricted Subsidiaries, bonding capacity at all times with
responsible companies and in such amounts and covering such risks as are usually
carried by companies engaged in similar businesses and owning similar properties
in the same general areas in which the Borrower or such Subsidiaries, as the
case may be, operate.

(s)      INACTIVE SUBSIDIARIES. Within 180 days after the Closing Date either
(i) wind-up or dissolve the Subsidiaries listed on Schedule 8.01(s), or (ii)
cause the Subsidiaries listed in Schedule 8.01(s) to take all steps necessary to
become Restricted Subsidiaries.

<PAGE>   75
                                      -74-

(t)      PRIORITY ACCOUNTS PAYABLE. If, as at the end of any Financial Quarter,
the accounts payable due and owing to subcontractors ("SUBCONTRACTORS") for the
supply of goods and services exceed 5% of Annualized Total Cost of Goods Sold,
deliver a certificate of the Chief Financial Officer of Bracknell identifying
(in such detail as the Administrative Agent shall reasonably request) the
Priority Accounts Payable and setting out the amount thereof. In such event, the
amount of Priority Accounts Payable shall be added to Total Net Debt for the
purposes of calculating the Applicable Margin and the Applicable Commitment Fee
and determining compliance with Section 8.03(b).

(u)      CURE DEFECTS. Promptly cure or cause to be cured any defects in the
execution and delivery of any of the Credit Documents or any defects in the
validity or enforceability of any of the Security and at its expense, execute
and deliver or cause to be executed and delivered, all such agreements,
instruments and other documents as the Administrative Agent may consider
necessary or desirable for the foregoing purposes.

(v)      FURTHER ASSURANCES. At its cost and expense, upon request of the
Administrative Agent, execute and deliver or cause to be executed and delivered
to the Administrative Agent such further instruments and do and cause to be done
such further acts as may be necessary or proper in the reasonable opinion of the
Administrative Agent to carry out more effectively the provisions and purposes
of the Credit Documents.

         SECTION 8.02.     NEGATIVE COVENANTS.

         So long as (i) any amount owing under the Credit Agreement remains
unpaid or any Lender or the Administrative Agent has any obligation under this
Agreement; and (ii) any amount owing under the Bracknell Limited Partnership
Facility remains unpaid or any Lender (as defined in the Bracknell Limited
Partnership Facility) has any obligation thereunder and, unless consent is given
in accordance with Section 11.01, none of the Borrowers shall:

(a)      DEBT. Create, incur, assume or suffer to exist or permit any of the
Restricted Subsidiaries to create, incur, assume or suffer to exist any Debt
other than (i) Debt to the Lenders under this Agreement, (ii) Debt incurred in
respect of Purchase Money Mortgages up to an aggregate outstanding amount, at
any time, of U.S. $5,000,000 (or the equivalent amount in any other currency),
(iii) Debt described in Schedule 8.02(a) or any refinancing, replacement or
renewals of such Debt not exceeding in principal amount, rate of amortization
and interest rate, the amount outstanding, rate of amortization and the interest
rate, respectively, on the date of the refinancing, renewal or replacement, and
otherwise on terms and conditions not materially more restrictive than the terms
and conditions of the Debt to be refinanced, renewed or replaced, (iv) Debt
between and among the Borrowers and the Restricted Subsidiaries, (v)
Subordinated Debt provided no Default has

<PAGE>   76
                                      -75-

occurred or is continuing or would result from the incurrence thereof and the
Borrowers are in pro forma compliance with the financial covenants in Section
8.03 after giving effect to the incurrence thereof, (vi) letters of credit
issued by Persons which are not Lenders but which are guaranteed by Documentary
Credits issued pursuant to this Agreement, (vii) Debt permitted in writing by
the requisite Lenders as part of their approval of a Permitted Acquisition,
(viii) Debt and Debt Guaranteed under the Senior Bridge Loan; and (ix) Debt
under the Bracknell Limited Partnership Facility.

(b)      LIENS. Create, incur, assume or suffer to exist, or permit any of the
Restricted Subsidiaries to create, incur, assume or suffer to exist, any Lien on
any of their respective properties or assets other than (i) Permitted Liens, and
(ii) Liens granted to secure permitted Hedging Agreements.

(c)      MERGERS, ETC. Except as specifically permitted by the requisite Lenders
as part of their approval of a Permitted Acquisition and subject to the next
following sentence, enter into, or permit any of the Restricted Subsidiaries to
enter into, any transaction (whether by way of reorganization, consolidation,
amalgamation, winding-up, merger, sale, lease or otherwise) whereby (i) all or
any substantial part of its undertaking or assets would become the property of
any other Person, or (ii) Bracknell ceases to hold, directly or indirectly, 100%
of the shares of its Restricted Subsidiaries, or (iii) an Acquisition of Control
would occur. The Borrowers and any Restricted Subsidiary or any Restricted
Subsidiary and any other Restricted Subsidiary may enter into such transactions
with each other if (v) immediately after giving effect to the transaction, no
event shall have occurred and be continuing which constitutes a Default or Event
of Default, (w) in the case of a transaction involving a Borrower or any
Restricted Subsidiary incorporated under the laws of Canada or one of its
provinces or territories, the continuing corporation is also a corporation
existing under the laws of Canada or one of its provinces or territories, (x) in
the case of any transaction involving only Restricted Subsidiaries incorporated
outside of Canada or one of its provinces or territories, the continuing
corporation shall be a corporation incorporated under the laws of one of the
states of the United States of America, (y) where the predecessor corporation
was either a Borrower or a Restricted Subsidiary, the continuing corporation
assumes the Borrower's or the Restricted Subsidiary's obligations, if any, under
the Credit Documents pursuant to an agreement in form and substance satisfactory
to the Administrative Agent, and (z) the Lenders receive an opinion of counsel
to the Borrower and the Restricted Subsidiary, acceptable to them, that the
transaction complies with this Section 8.02(c).

(d)      DISPOSAL OF ASSETS GENERALLY. Sell, exchange, lease, release or abandon
or otherwise dispose of, or permit any of the Restricted Subsidiaries to sell,
exchange, lease, release or abandon or otherwise dispose of, any assets or
properties or interests therein (including, its interest in any Non-Recourse
Subsidiary) to any Person other than (i) property or assets which have no
material economic value in

<PAGE>   77
                                      -76-

the Business or are obsolete, (ii) dispositions pursuant to a transaction
permitted by Sections 8.02(c) and (e), (iii) dispositions of assets in the
ordinary course of business provided the sale prices do not exceed $1,000,000 in
aggregate in any Financial Year, (iv) dispositions which have been specifically
approved by the requisite Lenders as part of their approval of a Permitted
Acquisition, and (v) bona fide sales at fair market value provided that:

         A.       the Net Proceeds of such dispositions are used for Permitted
                  Acquisitions within a period of three months following the
                  closing date of such disposition or if the Borrowers fail to
                  use such Net Proceeds for Permitted Acquisitions, the
                  Borrowers shall prepay the Credit Facilities in accordance
                  with Section 2.04(5), and

         B.       the Borrowers will remain in compliance with all financial
                  covenants set out in Section 8.03 on a pro forma basis after
                  taking into account such dispositions.

Nothing in this Section 8.02(d) shall apply to, or be deemed to permit, any of
the transactions otherwise prohibited or restricted in Section 8.02(c).

(e)      TRANSACTIONS WITH RELATED PARTIES. Except as otherwise permitted in
Sections 8.02(a), (c), (h) and (i), directly or indirectly, itself or allow any
Restricted Subsidiary, to enter into any contract with, make any financial
accommodation for or otherwise enter into any transaction with a Related Party
except (i) in the ordinary course of and pursuant to the reasonable requirements
of business and at prices and on terms not less favourable to the Borrower or
such Restricted Subsidiary, as the case may be, than could be obtained in a
comparable arm's length transaction with a Person who is not a Related Party, or
(ii) the assignment of contracts by the Borrower or a Restricted Subsidiary to
another Borrower or Restricted Subsidiary.

(f)      CHANGE IN BUSINESS. Make any change in the nature of the Business or
permit any of the Restricted Subsidiaries to make any change in the nature of
its business.

(g)      SHARE CAPITAL. Issue shares, or any options, warrants or securities
convertible into shares, except (i) to (y) a Borrower, in the case of the
Restricted Subsidiaries, or (z) the Restricted Subsidiaries in the case of other
Restricted Subsidiaries, if, in each case, the shares, options, warrants or
securities have been pledged to the Administrative Agent pursuant to the
Security Documents, (ii) an issue of shares, options or warrants of Bracknell or
securities of Bracknell convertible into shares provided such issuance does not
result in an Acquisition of Control, or (iii) as specifically permitted by the
requisite Lenders as part of their approval of a Permitted Acquisition.

<PAGE>   78
                                      -77-

(h)      DISTRIBUTIONS. Declare, make or pay or permit any Restricted Subsidiary
to declare, make or pay any Distributions, except (provided that no Default or
Event of Default has occurred and is continuing or could result therefrom) that
State, Nationwide or any Restricted Subsidiaries may (i) make payments on
account of Debt owing to a Borrower or any Restricted Subsidiary, and (ii)
declare and pay dividends to a Borrower or any Restricted Subsidiary.

(i)      INVESTMENTS. Make or permit any of the Restricted Subsidiaries to make,
any Investment in any Person, except for (i) foreign currency hedges, interest
rate swaps or similar interest rate and currency hedging obligations or
agreements permitted pursuant to Section 8.02(1), (ii) inter-company loans and
Investments between a Borrower and a Borrower or a Restricted Subsidiary or
between Restricted Subsidiaries provided that if the lender is a Borrower or a
Restricted Subsidiary located in the United States of America, the inter-company
loans are evidenced by a promissory note and security satisfactory to the
Administrative Agent which have been assigned to the Administrative Agent as
Security, (iii) investments in securities of a Borrower or a Restricted
Subsidiary by another Borrower or Restricted Subsidiary in accordance with an
issuance permitted pursuant to Section 8.02(g), (iv) Cash Equivalents, (v)
Investments in Joint Ventures permitted pursuant to Section 8.02(w), (vi)
Investments approved in writing by the Supermajority Lenders, or all the Lenders
as the case may be, as part of their approval of a Permitted Acquisition, and
(vii) such other Investments as the Majority Lenders may approve in writing in
the exercise of their sole discretion.

(j)      ACQUISITIONS. Make or permit any of its Restricted Subsidiaries to make
any Acquisition, other than the Sylvan Acquisition, the Highlight Acquisition
and the Sunbelt Acquisition, unless (so long as no Default or Event of Default
has occurred and is continuing or would result therefrom) (i) (x) the
Acquisition has a Total Enterprise Value of less than $10,000,000 individually
or in the aggregate with other Acquisitions in any Financial Year, (y) in the
case of Acquisitions in respect of which the Total Enterprise Value is greater
than or equal to $10,000,000 but less than $20,000,000 individually or in
aggregate with other Acquisitions in any Financial Year, the prior written
consent (which may be withheld in the sole discretion of the Lenders) of the
Supermajority Lenders is obtained, or (z) in the case of Acquisitions in respect
of which the Total Enterprise Value is equal to or greater than $20,000,000
individually or in aggregate with other Acquisitions in any Financial Year, the
prior written consent (which may be withheld in the sole discretion of the
Lenders) of all of the Lenders is obtained, (ii) the Acquisition is consistent
with the most recently delivered Annual Business Plan, (iii) the Acquisition is
or is in the Business, (iv) if the Acquisition is an acquisition of shares of a
Person, Bracknell acquires all the issued and outstanding shares of the Person,
(v) the Acquisition is not a hostile take-over bid, (vi) the Acquisition is in
respect of a business whose assets are located in Canada or the United States of
America and the Administrative Agent on behalf of the Lenders will have
first-ranking security

<PAGE>   79
                                      -78-

interest over the assets to be acquired, subject to Permitted Liens, and (vii)
the Borrowers shall have delivered to the Administrative Agent, financial
statements for three consecutive Financial Quarters, following the first
Financial Quarter in which the Sylvan Acquisition, the Highlight Acquisition and
the Sunbelt Acquisition are fully accounted for in accordance with GAAP.
Bracknell shall provide to the Administrative Agent as soon as possible in
connection with any proposed Acquisition:

         A.       a copy of the proposed acquisition agreement, when available;

         B.       financial statements (audited, if available) of the business
                  being acquired for three prior fiscal years (or as many prior
                  fiscal years as the business has been in existence if it has
                  been in existence for less than three fiscal years);

         C.       unconsolidated and consolidated financial forecasts for the
                  business being acquired up to the end of the first Financial
                  Quarter following the Relevant Repayment Date;

         D.       a detailed business plan, analysis or similar report and pro
                  forma financial statements and statement of sources and uses
                  of Bracknell on a consolidated basis showing the impact of the
                  Acquisition on the business and financial prospects of the
                  Borrowers and the Restricted Subsidiaries for a period up to
                  the Relevant Repayment Date;

         E.       a pro forma Compliance Certificate setting out the aggregate
                  purchase price of all Acquisitions in the relevant Financial
                  Year and stating that after the Acquisition, the Borrowers
                  will be in compliance with all covenants, including financial
                  covenants, referred to herein and that such Acquisition will
                  not result in the occurrence of a Default or Event of Default;
                  and

         F.       such other information as the Administrative Agent may
                  reasonably request.

(k)      LEASE-BACKS. Enter into or permit any of the Restricted Subsidiaries to
enter into any arrangements, directly or indirectly, with any Person, whereby a
Borrower or such Subsidiary, as the case may be, shall sell or transfer any
property, whether now owned or hereafter acquired, used or useful in the
Business, in connection with the rental or lease of the property so sold or
transferred or of other property for substantially the same purpose or purposes
as the property so sold or transferred.

<PAGE>   80
                                      -79-

(l)      HEDGING. Enter into or allow any of its Restricted Subsidiaries to
enter into any Hedging Agreements other than (i) pari passu Hedging Agreements
with a Lender or an Affiliate thereof, provided that, at all times, the
aggregate Borrowers' Mark-to-Market Exposure of all such Hedging Agreements does
not exceed $15,000,000, and (ii) Hedging Agreements with a Lender or an
Affiliate thereof which are subordinated to the pari passu Hedging Agreements
referred to in paragraph (i). For purposes of paragraph (i) above, a Hedging
Agreement with a Lender or an Affiliate thereof shall be a pari passu Hedging
Agreement if, on the effective date of any such Hedging Agreement, the Borrower
or the hedging provider shall have delivered to the Administrative Agent a
report of the hedging provider setting out the Borrowers' Mark-to-Market
Exposure and the material terms of the Hedging Agreement (including its
effective date, notional amount, currency, applicable rates, amortization and
maturity date), and such other information as may be reasonably requested by the
Administrative Agent in order to enable it to verify the Borrowers'
Mark-to-Market Exposure of such Hedging Agreement and allocate to it a share of
the pari passu entitlement.

(m)      SUBSIDIARIES. Except as specifically permitted by the requisite Lenders
as part of their approval of a Permitted Acquisition or as otherwise permitted
pursuant to Section 8.02(w), incorporate or acquire any subsidiaries or commence
to carry on the Business, otherwise than through a Borrower or a Restricted
Subsidiary existing as of the date of this Agreement except a subsidiary which
(i) is a wholly-owned subsidiary of Bracknell incorporated under the laws of
Canada or one of its provinces or territories or any state of the United States
of America, and (ii) has executed and delivered to the Administrative Agent an
unconditional and unlimited guarantee of all obligations of the Borrowers under
this Agreement and the other Credit Documents together with Security over all of
its property and assets and accompanied by opinions satisfactory to the
Administrative Agent. Permit any Non-Recourse Subsidiary to have any Debt which
cross-defaults or cross-accelerates to any Debt of a Borrower or any of the
Restricted Subsidiaries or in respect of which a Borrower or a Restricted
Subsidiary is contingently liable. Permit a Borrower or a Restricted Subsidiary
to enter into any agreement which requires it to maintain or preserve the
Non-Recourse Subsidiary's financial position or to cause such Subsidiary to
achieve any specified financial or operating results.

(n)      COMPROMISE OF ACCOUNTS. Compromise or adjust or permit any of the
Restricted Subsidiaries to compromise or adjust any of its accounts receivable
(or extend the time for payment thereof) or grant any discounts, allowances or
credits, in each case other than in the normal course of business.

(o)      INVOICES. Redate any invoice or sale or provision of service or make
sales or provide services on extended dating beyond that customary in the
Business or the business of the Restricted Subsidiaries.

<PAGE>   81
                                      -80-

(p)      BUSINESS OUTSIDE CERTAIN JURISDICTIONS. Have or permit any of the
Restricted Subsidiaries to have any place of business or keep or store any
tangible property outside of those jurisdictions (or registration districts
within such jurisdictions) set forth in Schedule 7.01(f) except upon 15 days'
written notice to the Administrative Agent, and (ii) unless the Borrowers have
done or caused to be done all such acts and things and executed and delivered or
caused to be executed and delivered all such deeds, transfers, assignments and
instruments as the Administrative Agent may reasonably require for perfecting a
security interest in such property in favour of the Administrative Agent and the
Lenders.

(q)      MATERIAL AGREEMENTS. Allow any amendments to any Material Agreement
which could reasonably be expected to have a Material Adverse Effect.

(r)      PAYMENTS IN ORDINARY COURSE OF BUSINESS, ETC. Make, or permit any
Restricted Subsidiary to make, any payments outside the ordinary course of
business, make any prepayments of professional fees or place any funds on trust
with third parties other than in the ordinary course of business.

(s)      HAZARDOUS SUBSTANCES, ETC. Except as disclosed in Schedule 7.01(s),
permit any asbestos, asbestos-containing materials, PCBs, radioactive substances
or other contaminants which could be the subject of a clean-up order to be
located on, at or under any of the Subject Properties. Except as disclosed in
Schedule 7.01(s), permit any underground storage vessels to be located or
installed at any of the Subject Properties.

(t)      CAPITAL EXPENDITURES. Make or commit to make or permit any of the
Restricted Subsidiaries to make or commit to make, Capital Expenditures
exceeding $5,000,000 in the aggregate in any Financial Year.

(u)      PUBLIC ANNOUNCEMENTS. Permit any public announcement or other
disclosure to be made of a Permitted Acquisition without the prior written
consent (which may be withheld in the sole discretion of any Lender) of (i) the
Supermajority Lenders in the case of any Acquisition referred to in subsection
8.02(j)(i)(y), or (ii) all of the Lenders in the case of any Acquisition
referred to in subsection 8.02(j)(i)(z).

(v)      OUTSTANDING ACCOUNTS PAYABLE. Permit Nationwide or any Restricted
Subsidiary formed under the laws of the United States of America or any state
thereof to have (i) more than twenty-five percent (25%) of its past due accounts
payable outstanding for more than 75 days, or (ii) any accounts payable
outstanding for more than 120 days, other than, in each case, accounts payable
which are being disputed in good faith by appropriate proceedings and for which
a Borrower or a Restricted Subsidiary has provided adequate reserves in
accordance with GAAP.

<PAGE>   82
                                      -81-

(w)      NON-RECOURSE JOINT VENTURES. Make or allow any Restricted Subsidiary to
make an Investment in a Joint Venture unless (so long as no Default or Event of
Default has occurred or is continuing or would result therefrom): (i) the Joint
Venture is in the Business and has been incorporated for a specific project;
(ii) the assets of the Joint Venture are located in Canada, the United States of
America, the Bahamas or any other country acceptable to the Majority Lenders;
(iii) the Administrative Agent, on behalf of the Lenders, has a first-ranking
security interest on the shares owned by the Borrower or Restricted Subsidiary
in the Joint Venture and Bracknell has delivered to the Administrative Agent a
satisfactory opinion of counsel with respect to the ownership and pledging of
such shares; (iv) all advances or other loans to the Joint Venture by the
Borrowers or the Restricted Subsidiaries are evidenced by a promissory note
assigned and delivered to the Administrative Agent immediately after such
advance or loan has been made; (v) the aggregate amount of all Investments
(whether by way of cash, loans, shares or otherwise) in the Joint Ventures does
not, at any time, exceed 10% of Consolidated Net Worth; and (vi) the aggregate
amount of the Investment (whether by way of cash, loans, shares or otherwise) in
any one Joint Venture, does not exceed, at any time, 5% of Consolidated Net
Worth.

(x)      SENIOR SUBORDINATED BRIDGE COMMITMENT LETTER. Make or allow any
amendments to the Senior Subordinated Bridge Commitment Letter without the prior
written consent of the Lenders.

         SECTION 8.03.     FINANCIAL COVENANTS.

         So long as (i) any amount owing under this Agreement remains unpaid or
any Lender has any obligation under this Agreement, and (ii) any amount owing
under the Bracknell Limited Partnership Facility remains unpaid or any Lender
(as defined in the Bracknell Limited Partnership Facility) has any obligation
thereunder and unless consent is given in accordance with Section 11.01, the
Borrowers shall:

(a)      TOTAL DEBT TO CAPITALIZATION. Ensure, at all times, that Total Debt
does not exceed (i) 75% of Capitalization for the Financial Quarters ended April
30, 2000 and July 31, 2000; (ii) 65% of Capitalization for the Financial
Quarters ended October 31, 2000 and January 31, 2001; and (iii) 50% of
Capitalization for each Financial Quarter thereafter.

(b)      MAINTENANCE OF TOTAL NET DEBT TO CONSOLIDATED EBITDA RATIO. Maintain,
at all times, a maximum ratio, calculated at the end of each Financial Quarter
for the four consecutive Financial Quarters then ended, of Total Net Debt to
Consolidated EBITDA of (i) 4.25:1 for the Financial Quarter ended April 30,
2000; (ii) 3.75:1 for the Financial Quarter ended July 31, 2000; (iii) 3.50:1
for the Financial Quarters ended October 31, 2000 and January 31, 2001; and (iv)
3.0:1 thereafter.

<PAGE>   83
                                      -82-

(c)      MAINTENANCE OF INTEREST COVERAGE RATIO. Maintain, at all times, a
minimum ratio, calculated as at the end of each Financial Quarter for the four
consecutive Financial Quarters then ended, of Consolidated EBITDA to
Consolidated Interest Expense of 3.0:1.

(d)      MAINTENANCE OF DEBT SERVICE RATIO. Maintain, at all times, a minimum
ratio, calculated at the end of each Financial Quarter of Consolidated EBITDA to
Consolidated Debt Service of (i) 1.25:1 for the Financial Quarters ended April
30, 2000 and July 31, 2000; (ii) 1.50:1 for the Financial Quarters ended October
31, 2000 and January 31, 2001; and (iii) 1.75:1 for each Financial Quarter
thereafter based on the four Consecutive Financial Quarters then ended and
Consolidated Debt Service shall be calculated on Bracknell's reasonable
projections for the four following Financial Quarters.

(e)      SENIOR NET DEBT TO CONSOLIDATED EBITDA RATIO. Maintain, at all times, a
maximum ratio, calculated at the end of each Financial Quarter of Senior Net
Debt to Consolidated EBITDA of (i) 3.5:1 for the Financial Quarters ended April
30, 2000 and July 31, 2000; (ii) 3.25:1 for the Financial Quarters ended October
31, 2000 and January 31, 2001; (iii) 3.0:1 for the Financial Quarters ended
April 30, 2001, July 31, 2001 and October 31, 2001; and (iv) 2.5:1 for each
Financial Quarter thereafter. The foregoing ratios shall be reduced by 0.25:1
for each U.S.$25,000,000 of Subordinated Debt incurred by Bracknell at any time
following the date hereof, provided that (i) any such adjustment shall be made
commencing and shall be effective in the Financial Quarter immediately following
the receipt of the Net Proceeds of such Subordinated Debt by Bracknell; and (ii)
at no time shall the ratio of Senior Net Debt to Consolidated EBITDA be less
than 2.5:1.

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

<PAGE>   84
                                      -83-

                                   ARTICLE 9

                                EVENTS OF DEFAULT

         SECTION 9.01.     EVENTS OF DEFAULT.

         If any of the following events (each an "Event of Default") occurs and
is continuing:

(a)      a Borrower fails to pay any amount of the Accommodations Outstanding
when such amount becomes due and payable;

(b)      a Borrower fails to pay any interest or Fees when they become due and
payable and such failure remains unremedied for a period of three Business Days;

(c)      any representation or warranty or certification made or deemed to be
made by a Borrower or a Restricted Subsidiary or any of their respective
directors or officers in any Credit Document shall prove to have been incorrect
in any material respect when made or deemed to be made;

(d)      a Borrower fails to perform, observe or comply with any of the
covenants contained in Sections 8.02 or 8.03;

(e)      a Borrower fails to perform, observe or comply with any of the
covenants contained in Sections 8.01 and such failure remains unremedied for 10
days after the earlier of the date on which it first had knowledge of such
default and the date on which written notice of such default is given to
Bracknell by the Administrative Agent;

(f)      a Borrower fails to perform, observe or comply with any other term,
covenant or agreement contained in any Credit Document to which it is a party
and such failure remains unremedied for thirty days after the earlier of the
date on which it first had knowledge of such default and the date on which
written notice of such default is given to Bracknell by the Administrative
Agent;

(g)      a Restricted Subsidiary fails to perform or observe any term, covenant
or agreement contained in any Credit Document to which it is a party and such
failure remains unremedied for thirty days after the earlier of the date on
which it first had knowledge of such default and the date on which written
notice of such default is given to Bracknell by the Administrative Agent;

(h)      a Borrower or any Subsidiary fails to pay any principal of, or premium
or interest on, any of its Debt (excluding Debt under this Agreement) which is

<PAGE>   85
                                      -84-

outstanding in an aggregate principal amount exceeding U.S. $10,000,000 or any
amounts under any Hedging Agreement with a notional principal amount exceeding
U.S$10,000,000, (or, in each case, the equivalent amount in any other currency)
when such amount becomes due and payable (whether by scheduled maturity or
payment, required prepayment, acceleration, demand or otherwise) and such
failure continues after the applicable grace period, if any, specified in the
agreement or instrument relating to such Debt or in the Hedging Agreement; or
any other event occurs or condition exists, and continues after the applicable
grace period, if any, specified in any agreement or instrument relating to any
such Debt or in the Hedging Agreement, if the effect of such event is to
accelerate, or permit the acceleration of the Debt or to terminate or permit the
termination of the Hedging Agreement; or any such Debt payable prior to its
stated maturity or Hedging Agreement terminated by the counterparty prior to its
stated maturity date by the holder thereof;

(i)      a Borrower or any Restricted Subsidiary fails to perform or observe any
term, covenant or agreement contained in any Material Agreement on its part to
be performed or observed where such failure could reasonably be expected to have
a Material Adverse Effect; or any Material Agreement is terminated or revoked or
permitted to lapse (other than in accordance with its terms or as approved by
the Administrative Agent); or any party to any Material Agreement delivers a
notice of termination or revocation (other than in accordance with its terms or
as approved by the Administrative Agent) in respect of the Material Agreement;
provided in each case that the failure, termination or revocation is not being
contested in good faith by appropriate proceedings;

(j)      any judgments or orders for the payment of money in excess of U.S.
$10,000,000 (or the equivalent amount in any other currency) in aggregate are
rendered against a Borrower or any Subsidiary and either (i) enforcement
proceedings have been commenced by a creditor upon any such judgment or order,
or (ii) there is any period of thirty consecutive days during which a stay of
enforcement of any such judgment or order, by reason of a pending appeal or
otherwise, is not in effect;

(k)      a Borrower or any Subsidiary incurs any Environmental Liabilities which
will require expenditures, (i) for any one occurrence, in excess of
U.S.$5,000,000, or (ii) aggregating in any Financial Year on a consolidated
basis, U.S.$5,000,000;

(l)      any Borrower, any Subsidiary of any Borrower or any ERISA Affiliate
fails to pay when due an amount or amounts aggregating in excess of U.S.
$1,000,000 which it shall have become liable to pay under Section 4062, 4063 or
4064 of ERISA; or a notice of intent to terminate a Plan is filed under Title IV
of ERISA by any Borrower, any Subsidiary of any Borrower or any ERISA Affiliate,
any plan administrator or any combination of the foregoing if such termination

<PAGE>   86
                                      -85-

would result in a Material Adverse Effect; or the Pension Benefit Guaranty
Corporation institutes proceedings under Title IV of ERISA to terminate, to
impose liability (other than for premiums under Section 4007 of ERISA) in
respect of, or to cause a trustee to be appointed to administer, any Plan, if
such action by the Pension Benefit Guaranty Corporation would result in a
Material Adverse Effect; or there occurs a complete or partial withdrawal from,
or a default, within the meaning of Section 4219(c)(5) of ERISA, with respect to
one or more Multiemployer Plans which could reasonably cause any Borrower, any
Subsidiary of any Borrower or any ERISA Affiliate to incur a current annual
payment obligation in excess of U.S. $1,000,000;

(m)      there is an Acquisition of Control except as may be specifically
permitted by the requisite Lenders as part of their approval of a Permitted
Acquisition;

(n)      a Borrower or any Restricted Subsidiary (i) becomes insolvent or
generally not able to pay its debts as they become due, (ii) admits in writing
its inability to pay its debts generally or makes a general assignment for the
benefit of creditors, (iii) institutes or has instituted against it any
proceeding seeking (x) to adjudicate it a bankrupt or insolvent, (y)
liquidation, winding-up, reorganization, arrangement, adjustment, protection,
relief or composition of it or its debts under any law relating to bankruptcy,
insolvency, reorganization or relief of debtors including any plan of compromise
or arrangement or other corporate proceeding involving or affecting its
creditors, or (z) the entry of an order for relief or the appointment of a
receiver, trustee or other similar official for it or for any substantial part
of its properties and assets, and in the case of any such proceeding instituted
against it (but not instituted by it), either the proceeding remains undismissed
or unstayed for a period of 30 days, or any of the actions sought in such
proceeding (including the entry of an order for relief against it or the
appointment of a receiver, trustee, custodian or other similar official for it
or for any substantial part of its properties and assets) occurs, or (iv) takes
any corporate action to authorize any of the above actions;

(o)      there has occurred or been threatened, in the sole opinion of the
Majority Lenders, an event or development likely to have a Material Adverse
Effect;

(p)      the audited consolidated financial statements of the Borrowers are
qualified in any material respect by the Borrowers' independent auditors; or

(q)      a Bracknell LP Event of Default has occurred and is continuing,

then the obligation of the Lenders to make further Accommodations shall
immediately terminate and the Administrative Agent may, and shall at the request
of the Majority Lenders, declare the Accommodations Outstanding, all accrued
interest and Fees and all other amounts payable under this Agreement to be

<PAGE>   87
                                      -86-

immediately due and payable, without presentment, demand, protest or further
notice of any kind, except as may be required by law and which cannot be waived,
all of which are expressly waived by the Borrowers.

         SECTION 9.02.     REMEDIES UPON DEFAULT.

         (1)      Upon a declaration that the Accommodations Outstanding are
immediately due and payable pursuant to Section 9.01, the Administrative Agent
shall at the request of, or may with the consent of, the Majority Lenders,
commence such legal action or proceedings as the Majority Lenders, in their sole
discretion, deem expedient, including, the commencement of enforcement
proceedings under the Credit Documents all without any additional notice,
presentation, demand, protest, notice of dishonour, entering into of possession
of any property or assets, or any other action or notice, except as may be
required by law and which cannot be waived, all of which are expressly waived by
the Borrowers.

         (2)      The rights and remedies of the Administrative Agent and the
Lenders under the Credit Documents are cumulative and are in addition to, and
not in substitution for, any other rights or remedies. Nothing contained in the
Credit Documents with respect to the indebtedness or liability of the Borrowers
to the Administrative Agent and the Lenders, nor any act or omission of the
Administrative Agent or the Lenders with respect to the Credit Documents or the
Security shall in any way prejudice or affect the rights, remedies and powers of
the Administrative Agent and the Lenders under the Credit Documents and the
Security.

         SECTION 9.03.     HEDGING AGREEMENTS.

         Upon a declaration under Section 9.01, notwithstanding the terms of any
Hedging Agreements, all Hedging Agreements with a Lender shall be terminated and
the cost to the applicable Lender of that termination, if any, shall be
determined as of the date of the declaration. In determining that cost, it shall
be assumed that the Borrowers have defaulted under the Hedging Agreements, and
the cost shall then be determined in accordance with the terms of the agreement
governing the Hedging Agreements or, if there are no such terms, in accordance
with the usual practices of the applicable Lender and by reference to the
provisions regarding payments on early termination in the (Multicurrency-Cross
Border) ISDA Master Agreement (1992 version) as may be amended and agreed by the
parties.

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

<PAGE>   88
                                      -87-

                                   ARTICLE 10

                    THE ADMINISTRATIVE AGENT AND THE LENDERS

         SECTION 10.01.    AUTHORIZATION AND ACTION.

         (1)      Each Lender irrevocably appoints and authorizes the
Administrative Agent to take such action as Administrative Agent on its behalf
and to exercise such powers under this Agreement as are delegated to it by the
terms of this Agreement, together with the powers reasonably incidental thereto.
As to any matters not expressly provided for by this Agreement, the
Administrative Agent shall act or refrain from acting (and shall be fully
protected in so doing) upon the joint instructions of the Majority Lenders which
instructions shall be binding upon all Lenders. The Administrative Agent shall
not be required to take any action which (i) exposes it to personal liability,
(ii) is contrary to this Agreement or any applicable law, rule, regulation,
judgment or order, (iii) would require it to become registered to do business in
any jurisdiction, or (iv) would subject it to taxation.

         (2)      The Lenders appoint the Administrative Agent as the holder of
an irrevocable power of attorney (within the meaning of the Civil Code of
Quebec) for the purposes of holding security on the property and assets of the
Borrowers and the Restricted Subsidiaries pursuant to the laws of Quebec for the
due payment and performance of their respective obligations under the Credit
Documents. The Administrative Agent agrees to act in such capacity.

         (3)      The Administrative Agent has no duties or obligations other
than as set out in this Agreement and there shall not be construed against the
Administrative Agent any implied duties (including fiduciary duties),
obligations or covenants. The Administrative Agent may execute or perform, and
may delegate the execution and performance of, any of its powers, rights,
discretions and duties under the Credit Documents through or to any Persons
designated by it. References in any Credit Document to the Administrative Agent
shall include references to any such Persons.

         (4)      The Administrative Agent is not obliged to (i) take or refrain
from taking any action or exercise or refrain from exercising any right or
discretion under the Credit Documents, or (ii) incur or subject itself to any
cost in connection with the Credit Documents, unless it is first specifically
indemnified or furnished with security by the Lenders, in form and substance
satisfactory to it (which may include further agreements of indemnity or the
deposit of funds).

         (5)      The Administrative Agent shall promptly deliver to each Lender
any notices, reports or other communications contemplated in this Agreement
which are intended for the benefit of the Lenders.

<PAGE>   89
                                      -88-

         SECTION 10.02.    NO LIABILITY.

         Neither the Administrative Agent nor its directors, officers, agents or
employees shall be liable to any Lender for any action taken or omitted to be
taken by it or them in connection with the Credit Documents except for its or
their own gross negligence or willful misconduct. Without limiting the
generality of the foregoing, the Administrative Agent (i) may treat any Lender
as the payee of amounts attributable to its Commitment unless and until the
Administrative Agent receives an agreement in the form contemplated in Section
11.08(5), (ii) may consult with legal counsel (including legal counsel for the
Borrowers), independent accountants and other experts selected by it and shall
not be liable for any action taken or omitted to be taken by it in accordance
with their advice, (iii) makes no warranty or representation to any Lender and
shall not be responsible to any Lender for the form, substance, accuracy or
completeness of any Credit Document or any other documents or information made
available to the Lenders, (iv) has no duty to inspect the property or assets
(including books and records) of the Borrowers or any other Person, (v) has no
duty to ascertain or inquire as to the existence of a Default or an Event of
Default or the observance of any of the terms or conditions of the Credit
Documents, (vi) is not responsible to any Lender for the execution,
enforceability, genuineness, sufficiency or value of any of the Credit
Documents, and (vii) shall incur no liability by acting upon any notice,
certificate or other instrument believed by it to be genuine and signed or sent
by the proper Person.

         SECTION 10.03.    ACCOMMODATIONS BY ADMINISTRATIVE AGENT.

         The Administrative Agent has the same rights and powers under this
Agreement with respect to its Commitment as any other Lender and may exercise
such rights and powers as though it were not the Administrative Agent. The term
"Lender" or "Lenders" shall, unless otherwise expressly indicated, include the
Administrative Agent in its individual capacity. The Administrative Agent and
its Affiliates may accept deposits from, lend money to, act as trustee under
indentures of, and generally engage in any kind of business with, the Borrowers
and any of their subsidiaries or any Person who may do business with or own
securities of such Persons, all as if it were not the Administrative Agent and
without any duty to account to the Lenders.

         SECTION 10.04.    REFERENCE RATE DETERMINATIONS.

         (1)      Each Reference Lender agrees to provide the Administrative
Agent with timely information for purposes of determining interest or discount
rates. If any one or more of them fails to provide the information to the
Administrative Agent, the Administrative Agent shall determine the applicable
interest or discount rate on the basis of timely information provided by the
remaining Reference Lenders.

<PAGE>   90
                                      -89-

         (2)      Upon request, the Administrative Agent shall promptly notify
Bracknell and the Lenders of the interest or discount rate determined by the
Administrative Agent for an Advance or Drawing and the applicable interest and
discount rates, if any, furnished by each Reference Lender for determining the
rate.

         SECTION 10.05.    HOLDING OF SECURITY; SHARING OF PAYMENTS, ETC.

         (1)      The Security shall be held by the Administrative Agent for the
benefit of itself and the rateable benefit of the Lenders in accordance with
their respective terms and any proceeds from any realization of the Security
shall be applied to the Accommodations Outstanding to each Lender rateably
(whether such Security is held in the name of the Administrative Agent or in the
name of any one or more of the Lenders and without regard to any priority to
which any Lender may otherwise be entitled under applicable law).

         (2)      The Security shall also secure obligations of the Borrowers
and the Restricted Subsidiaries under all Hedging Agreements with the Lenders
and their Affiliates (i) in respect of pari passu Hedging Agreements referred to
in Section 8.02(l), rateably in accordance with the agreements entered into by
the Lenders or Affiliates thereof with the Administrative Agent, in its capacity
as administrator of the Hedging Agreements, at the time the Hedging Agreements
are executed, and on a pari passu basis with the Credit Facilities, and (ii) in
respect of all Hedging Agreements which are not pari passu Hedging Agreements as
provided in Section 8.02(l), rateably in accordance with the agreements entered
into by the Lenders or Affiliates thereof with the Administrative Agent, in its
capacity as administrator of the Hedging Agreements, at the time the Hedging
Agreements are executed, but subordinate in right of payment to the repayment in
full of the Credit Facilities and the pari passu Hedging Agreements.

         (3)      Each Lender agrees with the other Lenders that it will not,
without the prior consent of the other Lenders, take or obtain any Lien on any
properties or assets of a Borrower or any of the Subsidiaries to secure the
obligations of a Borrower under this Agreement or any Restricted Subsidiary
under any Credit Document, except for the benefit of all Lenders or as may
otherwise be required by law.

         (4)      If any Lender obtains any payment (whether voluntary,
involuntary or through the exercise of any right of set-off or realization of
Security) on account of any Accommodations made by it (other than amounts paid
pursuant to Section 10.07) in excess of its rateable share of payments obtained
by all the relevant Lenders on such Accommodations, the Lender shall account to
and pay over to the other relevant Lenders their rateable share and shall, upon
request, immediately purchase from the other Lenders such participations in such
Accommodations made by the other Lenders as shall be necessary to cause the
purchasing Lender to share the excess payment rateably with the other relevant

<PAGE>   91
                                      -90-

Lenders. If all or any portion of the excess payment is recovered from the
purchasing Lender, the purchase price shall be rescinded and each relevant
Lender shall repay to the purchasing Lender the purchase price to the extent of
the recovery together with an amount equal to the Lender's rateable share
(according to the proportion that the amount the Lender's required repayment
bears to the total amount recovered from the purchasing Lender) of any interest
or other amount paid by the purchasing Lender in respect of the total amount
recovered. The Lender purchasing a participation from another Lender pursuant to
this Section 10.05 may, to the fullest extent permitted by law, exercise all its
rights of payment (including any right of set-off) with respect to such
participation as fully as if the Lender were a direct creditor of the Borrowers
in the amount of the participation and the Borrowers expressly acknowledge the
creation of such right.

         (5)      On request by, and at the expense of, the Borrowers and
provided no Default or Event of Default has occurred and is continuing, the
Administrative Agent and the Lenders shall discharge and release the Security to
the extent required to permit a sale, transfer or other disposition permitted
under this Agreement.

         SECTION 10.06.    LENDER CREDIT DECISIONS.

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

         SECTION 10.07.    INDEMNIFICATION.

         Each Lender shall indemnify and save the Administrative Agent harmless
(to the extent not reimbursed by the Borrowers) rateably from any claim or loss
suffered by, imposed upon or asserted against the Administrative Agent as a
result of, or arising out of, the Credit Documents or any action taken or
omitted by the Administrative Agent under the Credit Documents provided that no
Lender shall be liable for any part of such loss resulting from the gross
negligence or willful misconduct of the Administrative Agent in its capacity as
Administrative Agent. Without limiting the foregoing, each Lender shall
reimburse the Administrative Agent upon demand for its rateable share of any
out-of-pocket expenses incurred by the Administrative Agent in connection with
the preparation, execution, administration or enforcement of, or legal advice in
respect of rights or responsibilities under, the Credit Documents (to the extent
not reimbursed by the Borrowers).

<PAGE>   92
                                      -91-

         SECTION 10.08.    LIABILITY OF THE LENDERS INTER SE.

         Each of the Lenders agrees with each of the other Lenders that, except
as otherwise expressly provided in this Agreement, none of the Lenders has or
shall have any duty or obligation, or shall in any way be liable to any of the
other Lenders in respect of the Credit Documents or any action taken or omitted
to be taken in connection with them.

         SECTION 10.09.    SUCCESSOR ADMINISTRATIVE AGENTS.

         The Administrative Agent may resign at any time by giving written
notice to the Lenders and Bracknell, such resignation to be effective upon the
appointment of a successor Administrative Agent. Upon notice of any resignation,
the Majority Lenders have the right to appoint a successor Administrative Agent
who (at any time that no Default or Event of Default has occurred and is
continuing) shall be acceptable to Bracknell, acting reasonably. If no successor
Administrative Agent is appointed or has accepted the appointment within thirty
days after the retiring Administrative Agent's notice of resignation, then the
retiring Administrative Agent may, on behalf of the Lenders, appoint a successor
Administrative Agent, which is a Lender. Upon the acceptance of any such
appointment by a successor Administrative Agent, the successor shall succeed to
and become vested with all the rights, powers, privileges and duties of the
retiring Administrative Agent and the retiring Administrative Agent shall be
discharged from its duties and obligations under this Agreement. After any
retiring Administrative Agent's resignation, the provisions of this Article 10
shall inure to its benefit as to any actions taken or omitted to be taken by it
while it was Administrative Agent.

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

<PAGE>   93
                                      -92-

                                   ARTICLE 11

                                  MISCELLANEOUS

         SECTION 11.01.    AMENDMENT.

         (1)      Subject to subsections (2) and (3), no amendment or waiver of
any provision of any of the Credit Documents, nor consent to any departure by a
Borrower or any other Person from such provisions, is effective unless in
writing and approved by the Majority Lenders. Any amendment, waiver or consent
is effective only in the specific instance and for the specific purpose for
which it was given.

         (2)      Only written amendments, waivers or consents signed by all the
Lenders shall (i) increase any Commitment or any Lender's Commitment, (ii)
reduce the principal or amount of, or any payment of, or interest on, any
Accommodation Outstanding or any Fees, (iii) postpone any date fixed for any
payment of principal of, or interest on (including the Applicable Margins), any
Accommodation Outstanding or any Fees, (iv) amend Section 2.03, Sections 8.02(j)
or (u) or Schedule 5 or consent to any waiver of such sections, (v) change (y)
the percentage of the Commitments, or (z) the number or percentage of Lenders,
required for the Lenders, or any of them, or the Administrative Agent to take
any action, (vi) permit any amendment to, or termination of, any of the Security
Documents (except as otherwise permitted in Section 10.05(5)), (vii) change the
definition of Majority Lenders or Supermajority Lenders, or (viii) amend this
Section 11.01(2).

         (3)      Only written amendments, waivers or consents signed by the
Administrative Agent in addition to the Majority Lenders, shall affect the
rights or duties of the Administrative Agent under the Credit Documents.

         SECTION 11.02.    WAIVER.

         (1)      No failure on the part of any Lender or the Administrative
Agent to exercise, and no delay in exercising, any right under any of the Credit
Documents shall operate as a waiver of such right; nor shall any single or
partial exercise of any right under any of the Credit Documents preclude any
other or further exercise of such right or the exercise of any other right.

         (2)      Except as otherwise expressly provided in this Agreement, the
covenants, representations and warranties shall not merge on and shall survive
the initial Accommodation and, notwithstanding such initial Accommodation or any
investigation made by or on behalf of any party, shall continue in full force
and effect. The closing of this transaction shall not prejudice any right of one
party against any other party in respect of anything done or omitted under this
Agreement or in respect of any right to damages or other remedies.

<PAGE>   94
                                      -93-

         SECTION 11.03.    EVIDENCE OF DEBT AND ACCOMMODATION NOTICES.

         (1)      The indebtedness of each of the Borrowers resulting from
Accommodations under the Credit Facilities shall be evidenced by the records of
the Lenders (or the Administrative Agent on behalf of the Lenders) which shall
constitute prima facie evidence of such indebtedness. In the event of conflict
between the records of a Lender and the records of the Administrative Agent, the
records of the Lender shall prevail, absent manifest error.

         (2)      Prior to the receipt of any Accommodation Notice, the
Administrative Agent or any Lender may act upon the basis of a notice by
telephone (containing the same information as required to be contained in the
Accommodation Notice) believed by it in good faith to be from an authorized
person representing the applicable Borrower. In the event of a conflict between
the Administrative Agent's or the Lender's record, as applicable of any
Accommodation and the Accommodation Notice, the Administrative Agent's or the
Lender's record, as applicable shall prevail, absent manifest error.

         SECTION 11.04.    NOTICES, ETC.

         Any notice, direction or other communication to be given under this
Agreement shall, except as otherwise permitted, be in writing and given by
delivering it or sending it by telecopy or other similar form of recorded
communication addressed:

(a)      if to any of the Borrowers, c/o Bracknell at:

         Suite 1506
         150 York Street
         Toronto, Ontario  M5H 3S5

         Attention:  Chief Financial Officer
         Telephone:  (416) 360-4105
         Telecopier:  (416) 362-3290

(b)      if to the Administrative Agent, to it at:

         Global Syndications
         Royal Bank Plaza, South Tower
         200 Bay Street, 12th Floor
         Toronto, Ontario  M5J 2J5

         Attention:  Manager, Agency
         Telephone:  (416) 974-3866
         Telecopier:  (416) 974-2407

<PAGE>   95
                                      -94-

and, if to the Lenders, at the addresses shown on the signature pages. Any
communication shall be deemed to have been validly and effectively given (i) if
personally delivered, on the date of such delivery if such date is a Business
Day and such delivery was made prior to 4:00 p.m. (Toronto time), (ii) if
transmitted by facsimile or similar means of recorded communication on the
Business Day following the date of transmission. Any party may change its
address for service from time to time by notice given in accordance with the
foregoing and any subsequent notice shall be sent to the party at its changed
address.

         SECTION 11.05.    CONFIDENTIALITY.

         Each Lender agrees to use reasonable efforts to ensure that financial
statements or other information relating to the Borrowers which may be delivered
to it pursuant to this Agreement and which is not publicly filed or otherwise
made available to the public generally (and which is not independently known to
the Lender) will be treated confidentially by the Lender and will not, except
with the consent of Bracknell or as required by law, be distributed or otherwise
made available by the Lender to any Person other than its directors, officers,
employees, authorized agents, counsel or other representatives (provided the
other representatives have agreed or are under a duty to keep all information
confidential) required, in the reasonable opinion of the Lender, to have such
information. Each Lender is authorized to deliver a copy of any financial
statement or any other information which may be delivered to it pursuant to this
Agreement, to (i) any actual or potential Participant or Assignee provided it
has agreed to keep such information confidential on the terms hereof, (ii) any
Governmental Entity having jurisdiction over the Lender in order to comply with
any applicable laws, and (iii) any Affiliate of the Lender required, in the
reasonable opinion of such Lender, to have such information provided it has
agreed to keep such information confidential on the terms hereof.

         SECTION 11.06.    COSTS, EXPENSES AND INDEMNITY.

         (1)      The Borrowers shall, whether or not the transactions
contemplated in this Agreement are completed, indemnify and hold each of the
Lenders and the Administrative Agent and each of their respective officers,
directors, employees and agents (each an "Indemnified Person") harmless from,
and shall pay to such Indemnified Person on demand any amounts required to
compensate the Indemnified Person for, any claim or loss suffered by, imposed
on, or asserted against, the Indemnified Person as a result of, connected with
or arising out of (i) a default (whether or not constituting a Default or an
Event of Default) by a Borrower, (ii) any proceedings brought against the
Indemnified Person due to its entering into any of the Credit Documents and
performing its obligations under the Credit Documents except to the extent
caused by the gross negligence or willful misconduct of the Indemnified Person,
and (iii) the presence of contaminants at, on or under, or the discharge or
likely discharge of contaminants from, any of the

<PAGE>   96
                                      -95-

properties now or previously used by the Borrowers or any of their Subsidiaries,
or the breach by, or non-compliance with, any Environmental Law by any
mortgagor, owner, or lessee of such properties.

         (2)      If, with respect to any Lender, (i) any change in law, rule,
regulation, judgment or order of general application, or any change in the
interpretation or application of such law, rule, regulation, judgment or order,
occurring or becoming effective after this date, or (ii) compliance by the
Lender with any direction, request or requirement (whether or not having the
force of law) of any Governmental Entity made or becoming effective after this
date, has the effect of causing any loss to the Lender or reducing the Lender's
rate of return by (w) increasing the cost to the Lender of performing its
obligations under this Agreement or in respect of any Accommodations Outstanding
(including the costs of maintaining any capital, reserve or special deposit
requirements), (x) requiring the Lender to maintain or allocate any capital or
additional capital or affecting its allocation of capital in respect of its
obligations under this Agreement or in respect of any Accommodations
Outstanding, (y) reducing any amount payable to the Lender under this Agreement
or in respect of any Accommodations Outstanding by any material amount, (z)
causing the Lender to make any payment or to forego any return on, or calculated
by reference to, any amount received or receivable by the Lender under this
Agreement or in respect of any Accommodations Outstanding (but other than a loss
or reduction resulting from a higher rate or a change in the calculation of
income or capital tax relating to the Lender's income or capital in general),
then the Lender may give notice to a Borrower specifying the nature of the event
giving rise to the loss and the Borrower may either, (iii) on demand, pay such
amounts as the Lender specifies is necessary to compensate it for any such loss,
or (iv) provided no loss has yet been suffered by the Lender or a Borrower has
paid the compensating amount to the Lender, repay the applicable Accommodations
Outstanding and terminate the Lender's Commitments. A certificate as to the
amount of any such loss submitted in good faith by a Lender to a Borrower shall
be conclusive and binding for all purposes, absent manifest error.

         (3)      The Borrowers shall pay to the Lenders on demand any amounts
required to compensate the Lenders for any loss suffered or incurred by them as
a result of (i) any payment being made in respect of a BA Instrument,
Documentary Credit or Advance other than on the maturity or expiration or on the
last day of a Libor Interest Period applicable to it, (ii) the failure of a
Borrower to give any notice in the manner and at the times required by this
Agreement, (iii) the failure of a Borrower to effect an Accommodation in the
manner and at the time specified in any Accommodation Notice, or (iv) the
failure of a Borrower to make a payment or a mandatory repayment in the manner
and at the time specified in this Agreement. A certificate as to the amount of
any loss submitted in good faith by a Lender to a Borrower shall be conclusive
and binding for all purposes, absent manifest error.

<PAGE>   97
                                      -96-

         (4)      Whether or not any Accommodation is made under the Credit
Facilities, the Borrowers shall pay to each of the Administrative Agent and each
of the Lenders on demand all costs and expenses incurred by it, its agents,
officers, directors and employees and any receiver or receiver-manager appointed
by it or by a court in connection with the Credit Documents or the Credit
Facilities, including, without limitation (i) the preparation, execution, filing
and registration of any of the Credit Documents, any actual or proposed
amendment or modification thereof or any waiver thereunder and all instruments
supplemental or ancillary thereto, (ii) obtaining advice as to the rights and
responsibilities of the Administrative Agent or any of the Lenders under the
Credit Documents, and (iii) the defence, establishment, protection or
enforcement of any of the rights or remedies of the Administrative Agent or any
of the Lenders under any of the Credit Documents including, without limitation,
all costs and expenses of establishing the validity and enforceability of, or of
collection of amounts owing under, any of the Credit Documents or of any
enforcement of the Security, including, without limitation, in each case, all of
the fees, expenses and disbursements of its counsel, incurred in connection
therewith, and including all sales, value-added or similar taxes payable by it
(whether refundable or not) on all such costs and expenses.

         (5)      The provisions of this Section 11.06 shall survive the
termination of this Agreement and the repayment of all Accommodations
Outstanding. Each Borrower acknowledges that neither its obligation to indemnify
nor any actual indemnification by it of any Lender, the Administrative Agent or
any other Indemnified Person in respect of such Person's losses for the legal
fees and expenses shall in any way affect the confidentiality or privilege
relating to any information communicated by such Person to its counsel.

         SECTION 11.07.    TAXES AND OTHER TAXES.

         (1)      All payments to the relevant Lenders or the Administrative
Agent by Bracknell or State under any of the Credit Documents shall be made free
and clear of and without deduction or withholding for any and all taxes, levies,
imposts, deductions, charges or withholdings and all related liabilities (all
such taxes, levies, imposts, deductions, charges, withholdings and liabilities
being referred to as "TAXES") imposed by Canada or the United States of America
(or any political subdivision or taxing authority thereof or therein and other
than Taxes which are required to be withheld or deducted by (y) Canada in
respect of Taxes otherwise payable to Canada (or any political subdivision or
taxing authority thereof or therein) by the relevant Lender in respect of its
taxable income, or (z) the United States of America in respect of Taxes
otherwise payable to the United States of America (or any political subdivision
of or taxing authority thereof or therein) by the relevant Lender in respect of
its taxable income), unless such Taxes are required by applicable law to be
deducted or withheld. If Bracknell or State shall be required by applicable law
to deduct or withhold any such Taxes from or in respect of any amount payable
under any of the Credit Documents (i) the amount payable

<PAGE>   98
                                      -97-

shall be increased (and for greater certainty, in the case of interest, the
amount of interest shall be increased) as may be necessary so that after making
all required deductions or withholdings (including deductions or withholdings
applicable to any additional amounts paid under this Section 11.07(1)), the
relevant Lenders or the Administrative Agent receive an amount (free and clear
of such Taxes) equal to the amount they would have received if no such deduction
or withholding had been made, (ii) Bracknell or State shall make such deductions
or withholdings, and (iii) Bracknell or State shall immediately pay the full
amount deducted or withheld to the relevant Governmental Entity in accordance
with applicable law.

         (2)      Each Borrower agrees to immediately pay any present or future
stamp or documentary taxes or any other excise or property taxes, charges,
financial institutions duties, debits taxes or similar levies (all such taxes,
charges, duties and levies being referred to as "OTHER TAXES") which arise from
any payment made by such Borrower under any of the Credit Documents or from the
execution, delivery or registration of, or otherwise with respect to, any of the
Credit Documents.

         (3)      Each Borrower shall indemnify and hold harmless each of the
relevant Lenders and the Administrative Agent from and against the full amount
of Taxes or Other Taxes imposed on or paid by such Lenders or the Administrative
Agent and any liability (including penalties, interest and expenses) arising
from or with respect to such Taxes or Other Taxes, whether or not they were
correctly or legally asserted, to the extent that Bracknell, State or
Nationwide, as the case may be, was required to make any payment in respect of
such Taxes or Other Taxes and failed to do so, provided that the obligation so
to indemnify shall be limited (except as to Other Taxes) to Taxes with respect
to which such Borrower would have been obligated to make an increased payment to
such Lender or the Administrative Agent hereunder. In addition, each Borrower
shall indemnify the relevant Lenders and the Administrative Agent for any Taxes
or Other Taxes imposed by any jurisdiction on or with respect to any increased
amount payable by such Borrower under Section 11.07(1) or (5) or any payment or
indemnity payable by such Borrower under Section 11.07(2) or this Section
11.07(3), but only to the extent, if any, that such Taxes or Other Taxes imposed
on any Lender or the Administrative Agent exceed (after taking into account
available foreign tax credits, deductions, exemptions or other tax allowances in
respect of such payment which may be used by the relevant Lender) the amount of
such Taxes or Other Taxes that would have been imposed on it in the absence of
any increased amount payable by such Borrower under Section 11.07(1) or (5) or
any payment or indemnity payable by such Borrower under Section 11.07(2) or this
Subsection 11.07(3). Payment under this indemnification shall be made, by way of
an increase in interest (provided, and to the extent that, any such payment as
interest would cause the amount or rate of interest to exceed the maximum
allowable under and pursuant to applicable law, or the characterization of the
same as interest shall otherwise be disadvantageous to the Administrative Agent
and/or any Lender under and pursuant to the law of any

<PAGE>   99
                                      -98-

applicable jurisdiction, including but not limited to the usury laws thereof,
such payment or such amount thereof as shall exceed the maximum allowable amount
or otherwise be disadvantageous shall be paid not as interest but as payment in
respect of an indemnification as otherwise provided herein), within 30 days from
the date the Administrative Agent or the relevant Lender, as the case may be,
makes written demand for it. A certificate as to the amount of such Taxes or
Other Taxes submitted to the relevant Borrower by the Administrative Agent or
the relevant Lender shall be conclusive evidence, absent manifest error, of the
amount due from such Borrower to the Administrative Agent or the Lenders, as the
case may be.

         (4)      Each Borrower shall furnish to the Administrative Agent and
the Lenders the original or a certified copy of a receipt evidencing payment of
Taxes or Other Taxes made by it within 30 days after the date of any payment of
Taxes or Other Taxes.

         (5)      All payments to the relevant Lenders or to the Administrative
Agent by Nationwide under any of the Credit Documents shall be made free and
clear of and without deduction or withholding for or on account of any Taxes
imposed by the United States of America or Canada (or any political subdivision
or taxing authority thereof or therein and other than Taxes which are required
to be withheld or deducted by (y) Canada in respect of Taxes otherwise payable
to Canada (or any political subdivision or taxing authority thereof or therein)
by the relevant Lender in respect of its taxable income, or (z) the United
States of America in respect of Taxes otherwise payable to the United States of
America (or any political subdivision of or taxing authority thereof or therein)
by the relevant Lender in respect of its taxable income), unless such deduction
or withholding is required by law. If any deduction or withholding of such Taxes
is so required, (i) the amount payable by Nationwide in respect of which such
deduction or withholding is required to be made shall be increased (and for
greater certainty in the case of interest, the amount of interest will be
increased) as may be necessary to ensure that, after making all required
deductions or withholdings (including deductions or withholdings applicable to
any additional amounts paid under this Section 11.07(5)), the relevant Lenders
or the Administrative Agent receive an amount (free and clear of such Taxes)
equal to the amount they would have received if no such deduction or withholding
had been made or required to be made, (ii) Nationwide shall make such required
deductions or withholdings, and (iii) Nationwide shall immediately pay the full
amount deducted or withheld to the relevant Governmental Entity in accordance
with applicable law. The foregoing obligation to pay additional amounts will not
apply: (i) to any tax required to be deducted or withheld solely by reason of
the failure of the Administrative Agent or any relevant Lender to comply, at
Nationwide's reasonable request, with certification, identification or
information reporting requirements concerning the nationality, residence,
identity or connection to the taxing jurisdiction if compliance is required by
statute, by regulation or by an applicable income tax treaty as a precondition
for
<PAGE>   100
                                      -99-

any exemption or reduction from such tax, and (ii) to any tax not imposed on or
measured by income or receipts (gross or net).

         (6)      If a Lender shall demand payment from a Borrower under this
Section 11.07 (other than in respect of Other Taxes), such Borrower may, within
30 Business Days after receiving such notice, upon giving 10 Business Days'
notice to the Administrative Agent and the Lender requiring such payment, elect
to prepay to such Lender all or such part of the amount of the Accommodations
owing to such Lender as may be specified by the Borrower in such notice. Any
such notice so given shall be irrevocable and such Borrower shall, on the tenth
Business Day after the giving of such notice, prepay to such Lender the amount
of the Accommodations Outstanding required to be paid pursuant to the giving of
such notice together with all interest accrued thereon, all amounts payable
under this Section 11.07 and all other amounts payable to such Lender in
connection with such prepayment pursuant to Section 11.06 or otherwise. Such
Lender's Commitments so prepaid shall be correspondingly permanently reduced or
terminated (as the case may be) on the tenth Business Day after the giving of
such notice (and, for greater certainty, no other Lender shall be responsible
therefor), and the aggregate Commitments shall be reduced by the amount and at
the time of any prepayments so made.

         (7)      The provisions of this Section 11.07 shall survive the
termination of this Agreement and the repayment of all Accommodations
Outstanding.

         SECTION 11.08.    SUCCESSORS AND ASSIGNS.

         (1)      This Agreement shall become effective when executed by the
Borrowers, the Administrative Agent and each Lender and after that time shall be
binding upon and enure to the benefit of the Borrowers, the Lenders and the
Administrative Agent and their respective successors and permitted assigns.

         (2)      None of the Borrowers shall have the right to assign its
rights or obligations under this Agreement or any interest in this Agreement
without the prior consent of all the Lenders, which consent may be arbitrarily
withheld.

         (3)      Subject to the next following sentence, a Lender may (i) with
the prior written consent of the Administrative Agent (which consent is not to
be unreasonably withheld), grant participations in all or any part of its
interest in the Credit Facilities to one or more Persons (each a "PARTICIPANT"),
or (ii) (y) at any time prior to the occurrence of an Event of Default which has
not been waived or cured, with the prior written consent of the Administrative
Agent and Bracknell (which consent is not to be unreasonably withheld), or (z)
at any time after the occurrence and during the continuance of an Event of
Default, without any requirement for notice to or consent of any of the
Borrowers, assign all or any part of its interest in the Credit Facilities to
one or more Persons (each an "ASSIGNEE").

<PAGE>   101
                                     -100-

In the case of any assignment or participation, (iii) unless an Event of Default
shall have occurred and be continuing, such participation or assignment shall be
in respect of at least U.S. $10,000,000 (or the total Commitment of the
assigning Lender if such total Commitment is less than U.S. $10,000,000) and
U.S. $1,000,000 increments thereof, (iv) in the case of an assignment of a
Lender's Canadian Commitment prior to a declaration pursuant to Section 9.01 of
this Agreement, the Assignee shall not be a non-resident of Canada and, in the
case of an assignment of a Lender's U.S. Commitment prior to a declaration
pursuant to Section 9.01 of this Agreement, the Assignee shall be a Person
described in the definition of "Foreign Lender", (v) unless an Event of Default
shall have occurred and be continuing, no Lender shall have a Commitment of less
than U.S. $10,000,000 as a result of such assignment, and (vi) the assigning
Lender shall have paid an administration fee of U.S. $3,500 to the
Administrative Agent. A Lender granting a participation shall, unless otherwise
expressly provided in this Agreement, act on behalf of all of its Participants
in all dealings with the Borrowers in respect of the Credit Facilities and no
Participant shall have any voting or consent rights with respect to any matter
requiring the Lenders' consent. In the case of an assignment, the Assignee shall
have the same rights and benefits and be subject to the same limitations under
the Credit Documents as it would have if it was a Lender, provided that no
Assignee shall be entitled to receive any greater payment, on a cumulative
basis, pursuant to Section 11.06 than the Lender which granted the assignment
would have been entitled to receive.

         (4)      The Borrowers shall provide such certificates,
acknowledgements and further assurances in respect of this Agreement and the
Credit Facilities as any Lender may reasonably require in connection with any
participation or assignment pursuant to this Section 11.08.

         (5)      In the case of an assignment, a Lender shall deliver to the
Borrowers an assignment and assumption agreement substantially in the form of
Schedule 9 by which an Assignee of the Lender assumes the obligations and agrees
to be bound by all the terms and conditions of this Agreement, all as if the
Assignee had been an original party. Upon receipt by the Administrative Agent of
the assignment and assumption agreement, the assigning Lender and the Borrowers
shall be released from their respective obligations under this Agreement (to the
extent of such assignment and assumption) and shall have no liability or
obligations to each other to such extent, except in respect of matters arising
prior to the assignment.

         (6)      Any assignment or grant of participation pursuant to this
Section 11.08 will not constitute a repayment by a Borrower to the assigning or
granting Lender of any Accommodation, nor a new Accommodation to a Borrower by
such Lender or by the Assignee or Participant, as the case may be, and the
parties acknowledge that the Borrowers' obligations with respect to any such
Accommodations will continue and will not constitute new obligations.
<PAGE>   102
                                     -101-

         SECTION 11.09.    RIGHT OF SET-OFF.

         Upon the occurrence and during the continuance of any Event of
Default, each Lender is authorized at any time and from time to time, to the
fullest extent permitted by law (including general principles of common law),
to set-off and apply any and all deposits (general or special, time or demand,
provisional or final) at any time held and other indebtedness at any time owing
by it to or for the credit or the account of a Borrower against any and all of
the obligations of the Borrowers under any of the Credit Documents,
irrespective of whether or not the Lender has made demand under any of the
Credit Documents and although such obligations may be unmatured or contingent.
If an obligation is unascertained, the Lender may, in good faith, estimate the
obligation and exercise its right of set-off in respect of the estimate,
subject to providing the Borrower with an accounting when the obligation is
finally determined. Each Lender shall promptly notify Bracknell and the
Administrative Agent after any set-off and application is made by it, provided
that the failure to give notice shall not affect the validity of the set-off
and application. The rights of the Lenders under this Section 11.09 are in
addition to any other rights and remedies (including all other rights of
set-off) which the Lenders may have.

         SECTION 11.10.    ACCOMMODATIONS BY LENDERS.

         The failure of any Lender to make an Accommodation shall not relieve
any other Lender of its obligations in connection with such Accommodation, but
no Lender is responsible for any other Lender's failure in respect of an
Accommodation. Unless the Administrative Agent receives notice from a Lender
prior to the date of any Accommodation that the Lender will not make its
rateable portion of the Accommodation available to the Administrative Agent,
the Administrative Agent may assume that the Lender has made its portion so
available on the date of the Accommodation and may, in reliance upon such
assumption, make a corresponding amount available to the relevant Borrower. If
the Lender has not made its rateable portion available to the Administrative
Agent, the Lender shall pay the corresponding amount to the Administrative
Agent immediately upon demand. If the Lender pays the corresponding amount to
the Administrative Agent, the amount so paid shall constitute the Lender's part
of the Accommodation for purposes of this Agreement. If the Lender does not pay
the amount to the Administrative Agent immediately upon demand and such amount
has been made available to the relevant Borrower, the Borrower shall pay the
corresponding amount to the Administrative Agent immediately upon demand and
any amount received and so reimbursed would not and will not constitute an
Accommodation. The Administrative Agent shall also be entitled to recover from
the Lender or the relevant Borrower, as the case may be, interest on the
corresponding amount, for each day from the date the amount was made available
to the Borrower until the date it is repaid to the Administrative Agent, at a
rate per annum equal to the Administrative Agent's cost of funds.

<PAGE>   103
                                     -102-

         SECTION 11.11.    RATEABLE PAYMENTS.

         Unless the Administrative Agent receives notice from Bracknell prior
to the date on which any payment is due to the Lenders that a Borrower will not
make the payment in full, the Administrative Agent may assume that the Borrower
has made the payment in full on that date and may, in reliance upon that
assumption, distribute to each Lender on the due date an amount equal to the
amount then due to the Lender. If a Borrower has not made the payment in full,
each Lender shall repay to the Administrative Agent immediately upon demand the
amount distributed to it together with interest for each day from the date such
amount was distributed to the Lender until the date the Lender repays it to the
Administrative Agent, at a rate per annum equal to the Administrative Agent's
cost of funds.

         SECTION 11.12.    JUDGMENT CURRENCY.

         (1)      If, for the purposes of obtaining judgment in any court, it is
necessary to convert a sum due to a Lender or the Administrative Agent in any
currency (the "Original Currency") into another currency (the "Other
Currency"), the parties agree, to the fullest extent that they may effectively
do so, that the rate of exchange used shall be that at which, in accordance
with normal banking procedures, such Lender or the Administrative Agent could
purchase the Original Currency with the Other Currency on the Business Day
preceding the day on which final judgment is given or, if permitted by
applicable law, on the day on which the judgment is paid or satisfied.

         (2)      The obligations of a Borrower in respect of any sum due in the
Original Currency from it to any Lender or the Administrative Agent under any
of the Credit Documents shall, notwithstanding any judgment in any Other
Currency, be discharged only to the extent that on the Business Day following
receipt by the Lender or the Administrative Agent of any sum adjudged to be so
due in the Other Currency, the Lender or the Administrative Agent may, in
accordance with normal banking procedures, purchase the Original Currency with
such Other Currency. If the amount of the Original Currency so purchased is
less than the sum originally due to the Lender or the Administrative Agent in
the Original Currency, the Borrower agrees, as a separate obligation and
notwithstanding the judgment, to indemnify the Lender or the Administrative
Agent against any loss and, if the amount of the Original Currency so purchased
exceeds the sum originally due to the Lender or the Administrative Agent in the
Original Currency, the Lender or the Administrative Agent shall remit such
excess to the Borrower.

         SECTION 11.13.    INTEREST ON ACCOUNTS.

         Except as may be expressly provided otherwise in this Agreement, all
amounts owed by a Borrower to the Administrative Agent and to any of the

<PAGE>   104
                                     -103-

Lenders, which are not paid when due (whether at stated maturity, on demand, by
acceleration or otherwise) shall bear interest (both before and after default
and judgment), from the date on which such amount is due until such amount is
paid in full, payable on demand, at a rate per annum equal at all times to (i)
in the case of an amount payable in U.S. Dollars to Domestic Lenders, the sum
of the U.S. Base Rate in effect from time to time, the Applicable Margin and
2%, (ii) in the case of an amount payable in U.S. Dollars to Foreign Lenders,
the sum of the U.S. Prime Rate in effect from time to time, the Applicable
Margin and 2%, and (iii) in the case of an amount payable in Canadian Dollars,
the sum of the Canadian Prime Rate in effect from time to time, the Applicable
Margin and 2%.

         SECTION 11.14.    SEVERABILITY.

         Any provision of this Agreement which is or becomes prohibited or
unenforceable in any jurisdiction does not invalidate, affect or impair the
remaining provisions thereof and any such prohibition or unenforceability in
any jurisdiction does not invalidate or render unenforceable such provision in
any other jurisdiction.

         SECTION 11.15.    GOVERNING LAW.

         This Agreement shall be governed by and interpreted and enforced in
accordance with the laws of the Province of Ontario and the laws of Canada
applicable therein.

         SECTION 11.16.    COUNTERPARTS.

         This Agreement may be executed in any number of counterparts
(including by way of facsimile) and all of such counterparts taken together
shall be deemed to constitute one and the same instrument.

         SECTION 11.17.    REFERENCE TO AND EFFECT ON THE ORIGINAL CREDIT
AGREEMENT.

         On and after the date hereof, each reference in the Original Credit
Agreement to "this Agreement", "hereunder", "hereof", "herein" or words like
import, and each reference to the Original Credit Agreement in the Credit
Documents and all other agreements, documents, instruments delivered by all or
any one or more of the Administrative Agent, the Lenders, the Borrowers and any
other Person, shall mean and be a reference to the Original Credit Agreement as
amended and restated hereby, and except as specifically amended and restated
and as the Credit Agreement may be further amended, restated or supplemented,
the

<PAGE>   105
                                     -104-

Original Credit Agreement shall remain in full force and effect and is hereby
ratified and confirmed.

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

                                          BRACKNELL CORPORATION

                                          Per:
                                               ---------------------------------
                                                   Authorized Signing Officer

                                          Per:
                                               ---------------------------------
                                                   Authorized Signing Officer

                                          NATIONWIDE ELECTRIC, INC.

                                          Per:
                                               ---------------------------------
                                                   Authorized Signing Officer

                                          THE STATE GROUP LIMITED

                                          Per:
                                               ---------------------------------
                                                   Authorized Signing Officer

<PAGE>   106
                                     -105-

<TABLE>
<CAPTION>
COMMITMENTS                                          THE LENDERS
<S>                                                  <C>
Canadian Term                                        ROYAL BANK OF CANADA
Commitment:

                  U.S. $5,215,517                    Per:
                                                          -----------------------------------------------
                                                          Authorized Signing Officer
Canadian Acquisition
Commitment:
                                                     Per:
                                                          -----------------------------------------------
                                                          Authorized Signing Officer
                  U.S. $1,043,103                         Address:      200 Bay Street
                                                                        5th Floor, South Tower
Canadian Operating                                                      Toronto, Ontario
Commitment:                                                             M5J 2J5

                  U.S. $6,250,000

                                                          Telephone:    (416) 974-5322
Canadian Swingline                                        Telecopier:   (416) 974-4974
Commitment:
                                                          Attention:    Senior Account Manager
                  U.S. $5,000,000
</TABLE>

<PAGE>   107
                                     -106-

<TABLE>

<S>                                                  <C>
Canadian Term                                        CANADIAN IMPERIAL BANK OF
Commitment:                                          COMMERCE

                  U.S. $4,353,448                    Per:
                                                          -----------------------------------------------
                                                          Authorized Signing Officer
Canadian Acquisition
Commitment:
                                                     Per:
                                                          -----------------------------------------------
                  U.S. $870,690                           Authorized Signing Officer
                                                          Address:      BCE Place
Canadian Operating                                                      161 Bay Street, 8th Floor
Commitment:                                                             Toronto, Ontario
                                                                        M5J 2S8
                  U.S. $6,250,000
                                                          Telephone:    (416) 956-3814
                                                          Telecopier:   (416) 956-3816

                                                          Attention:    Peter A. Mastromarini
                                                                        Director, Canadian
                                                                        Credit Capital Markets

Canadian Term                                        THE TORONTO-DOMINION BANK
Commitment:

                  U.S. $4,353,448                    Per:
                                                          ------------------------------------------------
                                                          Authorized Signing Officer
Canadian Acquisition
Commitment:
                                                     Per:
                  U.S. $870,690                           -----------------------------------------------
                                                          Authorized Signing Officer
                                                          Address:      55 King Street West
Canadian Operating                                                      Toronto-Dominion Tower
Commitment:                                                             9th Floor
                                                                        Toronto, Ontario
                  U.S. $6,250,000                                       M5K 1A2

                                                          Telephone:    (416) 982-7512
                                                          Telecopier:   (416) 944-5630

                                                          Attention:    Joanne Lynch
                                                                        Vice President, Corporate
                                                                        Credit
</TABLE>

<PAGE>   108
                                     -107-

<TABLE>

<S>                                                  <C>
Canadian Term                                        BANK OF AMERICA CANADA
Commitment:

                  U.S. $3,732,759                    Per:
                                                          -----------------------------------------------
                                                          Authorized Signing Officer
Canadian Acquisition                                      Address:      200 Front Street West
Commitment:                                                             Suite 2700
                                                                        Toronto, Ontario
                  U.S. $746,552                                         M5V 3L2

Canadian Operating                                        Telephone:    (416) 349-5352
Commitment:                                               Telecopier:   (416) 349-4282

                  U.S. $6,250,000                         Attention:    Jeffrey A. Armitage
                                                                        Vice President, Global
                                                                        Corporate & Investment
                                                                        Banking

Canadian Term                                        BANK OF MONTREAL
Commitment:

                  U.S. $2,698,276                    Per:
                                                          -----------------------------------------------
                                                          Authorized Signing Officer
Canadian Acquisition
Commitment:
                                                     Per:
                                                          -----------------------------------------------
                  U.S. $539,655                           Authorized Signing Officer
                                                          Address:      24th Floor
                                                                        First Canadian Place
                                                                        Toronto, Ontario
                                                                        M5X 1A1

                                                          Telephone:    (416) 867-7147
                                                          Telecopier:   (416) 867-4741

                                                          Attention:    Director, Asset Portfolio
                                                                        Management
</TABLE>

<PAGE>   109
                                     -108-

<TABLE>
<S>                                                  <C>
Canadian Term                                        BANK ONE CANADA
Commitment:

                  U.S. $2,353,448                    Per:
                                                          -----------------------------------------------
                                                          Authorized Signing Officer
Canadian Acquisition
Commitment:
                                                     Per:
                  U.S. $470,690                           -----------------------------------------------
                                                          Authorized Signing Officer
                                                          Address:      161 Bay Street
                                                                        Suite 4240
                                                                        Toronto, Ontario
                                                                        M5J 2S1

                                                          Telephone:    (416) 365-5260
                                                          Telecopier:   (416) 363-7574

                                                          Attention:    Janet A. Beadle
                                                                        Vice President

Canadian Term                                        COMERICA BANK - CANADA
Commitment:

                  U.S. $2,293,103                    Per:
                                                          -----------------------------------------------
                                                          Authorized Signing Officer
Canadian Acquisition
Commitment:
                                                     Per:
                  U.S. $458,621                           -----------------------------------------------
                                                          Authorized Signing Officer
                                                          Address:      Royal Bank Plaza
                                                                        South Tower, Suite 2210
                                                                        Toronto, Ontario
                                                                        M5J 2J2

                                                          Telephone:    (416) 367-3113
                                                          Telecopier:   (416) 367-2460

                                                          Attention:    Philip Buxton
                                                                        Managing Director
</TABLE>

<PAGE>   110
                                     -109-

<TABLE>

<S>                                                  <C>
U.S. Operating                                       ROYAL BANK OF CANADA
Commitment:

                  U.S. $7,500,000                    Per:
                                                          -----------------------------------------------
                                                          Authorized Signing Officer
                                                          Address:      Royal Bank of Canada
                                                                        Grand Cayman
                                                                        (North America No. 1)
                                                                        Branch
                                                                        c/o New York Branch
                                                                        One Liberty Plaza
                                                                        3rd Floor
                                                                        New York, New York
                                                                        10006-1404

                                                          Telephone:    (212) 428-6212
                                                          Telecopier:   (212) 428-2372

                                                          Attention:    Linda Joannou

                                                          with a copy to:

                                                          Telephone:    (212) 428-6363
                                                          Telecopier:   (212) 809-7148

                                                          Attention:    N.G. Millar

U.S. Operating                                            CIBC INC.
Commitment:

                  U.S. $5,500,000                    Per:
                                                          -----------------------------------------------
                                                          Authorized Signing Officer

                                                     Per:
                                                          -----------------------------------------------
                                                          Authorized Signing Officer
                                                          Address:      CIBC World Markets
                                                                        425 Lexington Avenue
                                                                        New York, New York
                                                                        10017

                                                          Telephone:    (212) 856-3504
                                                          Telecopier:   (212) 856-3761

                                                          Attention:    Howard Palmer
</TABLE>

<PAGE>   111
                                     -110-

<TABLE>

<S>                                                  <C>
U.S. Operating                                       TORONTO DOMINION (TEXAS) INC.
Commitment:

                  U.S. $5,500,000                    Per:
                                                          -----------------------------------------------
                                                          Authorized Signing Officer
                                                          Address:      909 Fannin Street
                                                                        17th Floor
                                                                        Houston, Texas
                                                                        77010

                                                          Telephone:    (713) 653-8289
                                                          Telecopier:   (713) 951-9921

                                                          Attention:    Mark A. Baird

U.S. Operating                                       BANK OF AMERICA, N.A.
Commitment:

                  U.S. $4,600,000                    Per:
                                                          -----------------------------------------------
                                                          Authorized Signing Officer
                                                          Address:      1850 Gateway Blvd.
                                                                        5th Floor
                                                                        Concord, California
                                                                        94520

                                                          Telephone:    (925) 675-8025
                                                          Telecopier:   (925) 675-8051

                                                          Attention:    Jacqueline Ho
                                                                        Vice President
</TABLE>

<PAGE>   112
                                     -111-

<TABLE>

<S>                                                  <C>
U.S. Operating                                       BANK OF MONTREAL
Commitment:

                  U.S. $6,850,000                    Per:
                                                          -----------------------------------------------
                                                          Authorized Signing Officer

                                                     Per:
                                                          -----------------------------------------------
                                                          Authorized Signing Officer
                                                          Address:      115 South LaSalle Street
                                                                        12th Floor
                                                                        Chicago, Illinois
                                                                        60603

                                                          Telephone:    (312) 750-6958
                                                          Telecopier:   (312) 750-6057

                                                          Attention:    Bruce A. Pietka

U.S. Operating                                       BANK ONE, KENTUCKY, N.A.
Commitment:

                  U.S. $6,350,000                    Per:
                                                          -----------------------------------------------
                                                          Authorized Signing Officer
U.S. Alternate Operating
Commitment:
                                                     Per:
                                                          -----------------------------------------------
                  U.S. $5,000,000                         Authorized Signing Officer
                                                          Address:      416 West Jefferson St.
                                                                        Louisville, Kentucky:
                                                                        40202

                                                          Telephone:    (502) 566-2895
                                                          Telecopier:   (502) 566-8324

                                                          Attention:    Mary Lou Pollett
</TABLE>

<PAGE>   113
                                     -112-

<TABLE>

<S>                                                  <C>
U.S. Operating                                       COMERICA BANK
Commitment:

                  U.S. $6,200,000                    Per:
                                                          -----------------------------------------------
                                                          Authorized Signing Officer

                                                     Per:
                                                          -----------------------------------------------
                                                          Authorized Signing Officer
                                                          Address:      500 Woodward Avenue
                                                                        Detroit, Michigan
                                                                        48226

                                                          Telephone:    (313) 222-9125
                                                          Telecopier:   (313) 964-4765

                                                          Attention:    Jim Lentner
</TABLE>

<PAGE>   114
                                     -113-

<TABLE>

<S>                                                  <C>
                                                     THE ADMINISTRATIVE AGENT

                                                     ROYAL BANK OF CANADA

                                                     Per:
                                                          -----------------------------------------------
                                                          Authorized Signing Officer
                                                          Address:      Global Banking -
                                                                        Canada
                                                                        Royal Bank Plaza
                                                                        South Tower
                                                                        200 Bay Street, 12th Floor
                                                                        Toronto, Ontario
                                                                        M5J 2J5

                                                          Telephone:    (416) 974-3866
                                                          Telecopier:   (416) 974-2407

                                                          Attention:    Manager, Agency
</TABLE>

<PAGE>   115

                                   SCHEDULE 1

                            FORM OF BORROWING NOTICE

                                                                         [DATE]

Royal Bank of Canada, as
  Administrative Agent
Global Banking
Royal Bank Plaza
200 Bay Street, 12th Floor
South Tower
Toronto, Ontario
M5J 2J5

Attention:  Manager, Agency

Dear Sirs:

         The undersigned, [BORROWER] (the "BORROWER"), refers to the second
amended and restated credit agreement dated as of July 21, 2000 (as amended,
supplemented or restated from time to time, the "CREDIT AGREEMENT", the terms
defined therein being used herein as therein defined) among Bracknell
Corporation, The State Group Limited and Nationwide Electric, Inc. as
Borrowers, the Administrative Agent and the Lenders, and hereby gives you
notice pursuant to Section 3.02 of the Credit Agreement that the Borrower
hereby requests a Borrowing under the Credit Agreement, and, in that connection
sets forth below the information relating to such Borrowing (the "PROPOSED
BORROWING") as required by Section 3.02 of the Credit Agreement:

         (i)      The date of the Proposed Borrowing, being a Business Day, is
                  --.

         (ii)     The Type of Advance is a [CANADIAN PRIME RATE ADVANCE, U.S.
                  BASE RATE ADVANCE, LIBOR RATE ADVANCE OR U.S. PRIME RATE
                  ADVANCE].

         (iii)    The aggregate amount of the Proposed Borrowing is --.

         (iv)     The Credit Facility under which the Proposed Borrowing is
                  requested is --.

         (V)      [THE LIBOR INTEREST PERIOD IS -- DAYS.]

         The undersigned certifies that the conditions precedent under the
Credit Agreement to the giving of this Borrowing Notice and the making of the
Accommodation contemplated hereby have been fully satisfied.

<PAGE>   116
                                      -2-

         The undersigned confirms and certifies to the Administrative Agent and
each Lender that as of the date of this Borrowing Notice, no Default or Event
of Default has occurred and is continuing under the Credit Agreement.

         The undersigned further confirms and certifies to the Administrative
Agent and each Lender that the proceeds of the Borrowing will be used solely
for the purposes specified and permitted by Section 2.03 of the Credit
Agreement.

                                                Yours truly,

                                                [BORROWER]

                                                Per:
                                                    -----------------------
                                                    Authorized Signatory

<PAGE>   117

                                   SCHEDULE 2

                            FORM OF ELECTION NOTICE

                                                                         [DATE]

Royal Bank of Canada, as
  Administrative Agent
Global Banking
 Royal Bank Plaza
200 Bay Street, 12th Floor
South Tower
Toronto, Ontario
M5J 2J5

Attention:  Manager, Agency

Dear Sirs:

         The undersigned, [BORROWER] (the "BORROWER"), refers to the second
amended and restated credit agreement dated as of July 21, 2000 (as amended,
supplemented or restated from time to time the "CREDIT AGREEMENT"; the terms
defined therein being used herein as therein defined) among Bracknell
Corporation, The State Group Limited and Nationwide Electric, Inc. as
Borrowers, the Administrative Agent and the Lenders and hereby gives you notice
pursuant to Section 3.03 of the Credit Agreement that the Borrower hereby
[ELECTS TO CONVERT ONE TYPE OF ADVANCE TO ANOTHER TYPE OF ADVANCE] or [ELECTS
TO CONVERT ONE TYPE OF ADVANCE TO ANOTHER TYPE OF ACCOMMODATION] or [ELECTS AN
ADDITIONAL LIBOR INTEREST PERIOD FOR CERTAIN LIBOR RATE ADVANCES], and in that
connection sets forth below the information relating to such election as
required by Section 3.03 of the Credit Agreement:

         (i)      The Business Day on which the conversion from one Type of
                  Advance to another is to be made --.*

         (ii)     The Type of Advance to be converted is [INSERT AMOUNT,
                  CURRENCY AND TYPE OF ADVANCE] under the [CANADA] [U.S.] [TERM
                  FACILITY], [ACQUISITION FACILITY] or [OPERATING FACILITY].*

         (iii)    The new [TYPE OF ADVANCE] or [TYPE OF ACCOMMODATION] selected
                  is --.*.

         (iv)     The initial Libor Interest Period for Libor Rate Advance is
                  --.**

<PAGE>   118
                                      -2-

         (v)      The Libor Rate Advance which is to be continued as a Libor
                  Rate Advance is [SPECIFY AMOUNT].***

         (vi)     The current Libor Interest Period for such Libor Rate Advance
                  expires on [SPECIFY DATE].***

         (vii)    The additional Libor Interest Period selected for such Libor
                  Rate Advance is --.***

         The undersigned certifies that the conditions precedent under the
Credit Agreement to the giving of this Election Notice and the making of the
Accommodation contemplated hereby have been fully satisfied.

         The undersigned confirms and certifies to the Administrative Agent and
each Lender that as of the date of this Election Notice no Default or Event of
Default has occurred and is continuing under the Credit Agreement.

         The undersigned further confirms and certifies to the Administrative
Agent and each Lender that the proceeds of the Borrowing will be used solely
for the purposes specified and permitted by Section 2.03 of the Credit
Agreement.

                                                     Yours truly,

                                                     [BORROWER]

                                                     Per:
                                                         -----------------------
                                                         Authorized Signatory

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

*        Omit Clauses (i), (ii), (iii) and (v) if the election does not
involve a conversion of a Type of Advance.

**       Omit Clause (v) if the conversion of Type of Advance does not involve
a conversion to a Libor Rate Advance.

***      Omit Clauses (v), (vi) and (vii) if the election does not involve the
selection of an additional Libor Interest Period for a Libor Rate Advance.

<PAGE>   119

                                   SCHEDULE 3

                             FORM OF DRAWING NOTICE

                                                                         [DATE]

Royal Bank of Canada, as
  Administrative Agent
Global Banking
Royal Bank Plaza
200 Bay Street, 12th Floor
South Tower
Toronto, Ontario
M5J 2J5

Attention:  Manager, Agency

Dear Sirs:

         The undersigned, [BORROWER] (the "BORROWER"), refers to the second
amended and restated credit agreement dated July 21, 2000 (as amended,
supplemented or restated from time to time, the "CREDIT AGREEMENT", the terms
defined therein being used herein as therein defined) among Bracknell
Corporation, The State Group Limited and Nationwide Electric, Inc. as
Borrowers, the Administrative Agent and the Lenders and hereby gives you notice
pursuant to Section 4.03 of the Credit Agreement that the Borrower hereby
requests a Drawing under the Credit Agreement, and, in that connection sets
forth below the information relating to such Drawing (the "PROPOSED DRAWING")
as required by Section 4.03(1) of the Credit Agreement:

         (i)      The Drawing Date of the Proposed Drawing, being a Business
                  Day, is --.

         (ii)     The Credit Facility under which the Proposed Drawing is
                  requested is --.

         (iii)    The aggregate Face Amount of Drafts to be accepted and
                  purchased is Cdn. $--.

         (iv)     The contract maturity date of the Drafts is --.

         The undersigned certifies that the conditions precedent under the
Credit Agreement to the giving of this Drawing Notice and the making of the
Accommodation contemplated hereby have been fully satisfied.

<PAGE>   120
                                      -2-

         The undersigned confirms and certifies to the Administrative Agent and
each Lender that as of the date of this Drawing Notice no Default or Event of
Default has occurred and is continuing under the Credit Agreement.

         The undersigned further confirms and certifies to the Administrative
Agent and each Lender that the proceeds of the Borrowing will be used solely
for the purposes specified and permitted by Section 2.03 of the Credit
Agreement.

                                                     Yours truly,

                                                     [BORROWER]

                                                     Per:
                                                         -----------------------
                                                         Authorized Signatory

<PAGE>   121

                                   SCHEDULE 4

                              FORM OF ISSUE NOTICE

                                                                         [DATE]

Royal Bank of Canada, as
  Administrative Agent
Global Banking
Royal Bank Plaza
200 Bay Street, 12th Floor
South Tower
Toronto, Ontario
M5J 2J5

Attention:  Manager, Agency

Dear Sirs:

         The undersigned, [BORROWER] (the "BORROWER"), refers to the second
amended and restated credit agreement dated as of July 21, 2000 (as amended,
supplemented or restated from time to time; the "CREDIT AGREEMENT"; the terms
defined therein being used herein as therein defined) among Bracknell
Corporation, the State Group Limited and Nationwide Electric, Inc. as
Borrowers, the Administrative Agent and the Lenders and hereby gives you notice
pursuant to Section 5.02 of the Credit Agreement that the Borrower hereby
requests an Issue under the Credit Agreement, and, in that connection; sets
forth below the information relating to such Issue (the "PROPOSED ISSUE") as
required by Section 5.02 of the Credit Agreement:

         (i)      The Business Day of the Proposed Issue is --.

         (ii)     The Type of Documentary Credit is --.

         (iii)    The Credit Facility under which the Proposed Issue is
                  requested is -- and the Issuing Lender is --.

         (iv)     The Face Amount of and currency of the Documentary Credit is
                  --.

         (v)      The expiration date of the Documentary Credit is --.

         (vi)     The name and address of the Beneficiary of the Documentary
                  Credit is --.

         The undersigned certifies that the conditions precedent under the
Credit Agreement to the giving of this Issue Notice and the making of the
Accommodation contemplated hereby have been fully satisfied.

<PAGE>   122
                                   -2-

                  The undersigned confirms and certifies to the Administrative
Agent and each Lender that as of the date of this Issue Notice no Default or
Event of Default has occurred and is continuing under the Credit Agreement.

                  The undersigned further confirms and certifies to the
Administrative Agent and each Lender that the Documentary Credit will be used
solely for the purposes specified and permitted by Section 2.03 of the Credit
Agreement.

                                                     Yours truly,

                                                     [BORROWER]

                                                     Per:
                                                          ----------------------
                                                          Authorized Signatory

<PAGE>   123

                                   SCHEDULE 5

                                 NOTICE PERIODS

<TABLE>
<CAPTION>
                                   BORROWING NOTICE,
                                    DRAWING NOTICE,
                                    ISSUE NOTICE OR
                                       REPAYMENTS                  CONVERSION/               PREPAYMENT OR
                                  (SECTIONS 3.02, 4.03          ELECTION (SECTION             REDUCTION OF
TYPE OF ACCOMMODATION                   AND 5.02)                      3.03)                   COMMITMENT
-----------------------------------------------------------------------------------------------------------
<S>                               <C>                           <C>                         <C>
Canadian Prime Rate Advance          1 Business Day*             1 Business Day             3 Business Days
Bankers' Acceptances                 2 Business Day              2 Business Day                          --
U.S. Base Rate Advance               1 Business Day*             1 Business Day             3 Business Days
Libor Rate Advance                   3 Business Days             3 Business Days                         --
U.S. Prime Rate Advance              1 Business Day*             1 Business Day             3 Business Days
Documentary Credit                   3 Business Days                         --                          --
</TABLE>

*Borrowings by way of Canadian Prime Rate Advances, U.S. Base Rate Advances or
U.S. Prime Rate Advances may be available on same day notice for up to Cdn.
$10,000,000 or U.S. $10,000,000 as the case may be.

In the case of conversion, the notice period applicable to the other Type of
Accommodation into which an Accommodation is to be converted must also be
observed.

The day on which any notice is given is included and the day on which the
specified action is to occur are excluded in calculating the notice period.

<PAGE>   124

                                   SCHEDULE 6

                               APPLICABLE MARGINS
                          (in basis points per annum)

A.       CANADIAN TERM FACILITY, CANADIAN ACQUISITION FACILITY AND BRACKNELL
LIMITED PARTNERSHIP CREDIT FACILITY:

<TABLE>
<CAPTION>
    RATIO OF
    TOTAL NET
     DEBT TO                             PRIME         LIBOR MARGIN,
  CONSOLIDATED                           RATE,       B/A'S, L/C'S, AND
     EBITDA           FACILITY FEES      USBR             L/G'S              ALL-IN DRAWN
-----------------------------------------------------------------------------------------
<S>                   <C>                <C>         <C>                     <C>
       [] 1.5:1           75.0             NIL            100.0                75.0/175.0
>1.5:1 [] 2.0:1           75.0            25.0            125.0               100.0/200.0
>2.0:1 [] 2.5:1           75.0            50.0            150.0               125.0/225.0
>2.5:1 [] 3.0:1           75.0           100.0            200.0               175.0/275.0
>3.0:1 [] 3.5:1           95.0           130.0            230.0               225.0/325.0
>3.5:1 [] 4.0:1          110.0           165.0            265.0               275.0/375.0
>4.0:1 []4.25:1          137.5           187.5            287.5               325.0/425.0
</TABLE>

B.       OPERATING FACILITIES:

<TABLE>
<CAPTION>
   RATIO OF
   TOTAL NET
    DEBT TO                             PRIME         LIBOR MARGIN,
 CONSOLIDATED                           RATE,       B/A'S, L/C'S, AND
    EBITDA           FACILITY FEES      USBR              L/G'S              ALL-IN DRAWN
-----------------------------------------------------------------------------------------
<S>                  <C>                <C>         <C>                      <C>
       []  1.5:1        30.0             45.0             145.0                75.0/175.0
>1.5:1 []  2.0:1        37.5             62.5             162.5               100.0/200.0
>2.0:1 []  2.5:1        37.5             87.5             187.5               125.0/225.0
>2.5:1 []  3.0:1        50.0            125.0             225.0               175.0/275.0
>3.0:1 []  3.5:1        62.5            162.5             262.5               225.0/325.0
>3.5:1 []  4.0:1        75.0            200.0             300.0               275.0/375.0
>4.0:1 [] 4.25:1        87.5            237.5             337.5               325.0/425.0
</TABLE>

<PAGE>   125

                                   SCHEDULE 7

                         FORM OF COMPLIANCE CERTIFICATE

                                                                         [DATE]

Royal Bank of Canada, as
  Administrative Agent
Global Banking
Royal Bank Plaza, 200 Bay Street
12th Floor, South Tower
Toronto, Ontario
M5J 2J5

Attention:        --

Dear Sirs:

         The undersigned, Bracknell Corporation ("BRACKNELL"), refers to the
Second Amended and Restated Credit Agreement dated as of July 21, 2000 (as it
may be amended, restated, replaced or supplemented from time to time, the
"CREDIT AGREEMENT", the terms defined therein being used herein as therein
defined) among Bracknell Corporation, The State Group Limited and Nationwide
Electric, Inc. as Borrowers, the financial institutions that are parties
thereto as Lenders and Royal Bank of Canada, as Administrative Agent. The
[QUARTERLY/ANNUAL] Compliance Certificate is delivered pursuant to Section 8.01
of the Credit Agreement for the [FINANCIAL YEAR/QUARTER] ending on [--] (the
"PERIOD").

         I, _______________________________, the Chief Financial Officer of
Bracknell, in such capacity and not personally, hereby certify that:

1.       I am the duly appointed Chief Financial Officer of Bracknell and as
         such I am providing this certificate for and on behalf of Bracknell
         pursuant to the Credit Agreement.

2.       I am familiar with and have examined the provisions of the Credit
         Agreement.

3.       To the best of my knowledge, information and belief, and after due
         inquiry, no Default or Event of Default has occurred and is continuing
         as at the date hereof.

4.       The financial statements delivered pursuant to Section 8.01 of the
         Credit Agreement have been prepared in accordance with GAAP in effect
         on the date of such financial statements. The information contained
         therein is true and

<PAGE>   126
                                      -2-

         correct in all material respects, subject only to year end audit
         adjustments and presents fairly and consistently the results of
         operations and changes in the financial position of the Borrowers as
         of and to the date thereof.

5.       The representations and warranties contained in Article 7 of the
         Credit Agreement are true and correct, in all material respects, as
         though made on the date hereof (other than those which relate solely
         to a prior time).

6.       As at the date hereof, Bracknell has raised $-- in the public capital
         markets.

7.       As of the date hereof, the aggregate Total Enterprise Value of all
         Acquisitions is $--.

8.       As of the date hereof, the aggregate Net Proceeds received in
         connection with permitted asset dispositions is $--.

9.       As of the date hereof, the total amount of Investments in Joint
         Ventures is $--.

10.      As at the last day of [DATE] the following ratios or calculations, as
         the case may be, were as follows:

<TABLE>

         <S>     <C>
         (a)      Total Debt as a percentage of
                  Capitalization:

         (b)      Total Net Debt to Consolidated
                  EBITDA:

         (c)      Consolidated EBITDA to Consolidated
                  Interest Expense:

         (d)      Consolidated EBITDA to Consolidated
                  Debt Service:

         (e)      Senior Net Debt to Consolidated EBITDA:
</TABLE>

                  DATED this _________ day of _______________________, _______.

                                                ------------------------------
                                                (Signature)

                                                ------------------------------
                                                (Name - please print)
                                                Chief Financial Officer

<PAGE>   127

                                SCHEDULE 7.01(F)
                        LOCATION OF ASSETS AND BUSINESS

New Brunswick

Quebec

Ontario

Manitoba

Saskatchewan

Alberta

British Columbia

Nova Scotia

Michigan

Indiana

Kentucky

Ohio

Georgia

Minnesota

Nevada

California

New Jersey

Tennessee

South Carolina

Texas

Illinois

<PAGE>   128

                                SCHEDULE 7.01(G)
                                 AUTHORIZATIONS

1.       The Borrowers and the Restricted Subsidiaries have all necessary
         contractor and trade licenses, certifications, authorizations,
         registrations and approvals in every jurisdiction in which they carry
         on business.
2.       The Borrowers and the Restricted Subsidiaries have non-gaming supplier
         licenses to provide services to the gaming industry in various
         jurisdictions in Canada and the U.S. and for certain tribes.

<PAGE>   129

                                SCHEDULE 7.01(I)
                                OWNED PROPERTIES

         BRACKNELL CORPORATION

1.       Vacant land at 10 Hawk Street, Nanticoke, Ontario.

         THE STATE GROUP LIMITED

2.       Land (original price $166,977) and the building (original price
         $602,401) at 2425 Central Avenue, Windsor, Ontario.

3.       Land (original price $100,024) and the building (original price of
         $84,021) at 21 Whitebone Way, St. John, New Brunswick.

         HIGHLIGHT CONSTRUCTION LTD.

4.       Land and the building (original price of $225,000 collectively) at
         #9-19533 96th Avenue, Surrey, British Columbia.

<PAGE>   130

                                SCHEDULE 7.01(J)
                               LEASED PROPERTIES

BRACKNELL CORPORATION
<TABLE>
<CAPTION>
ADDRESS:                                 LESSOR:                                  PERIOD:
--------                                 -------                                  -------
<S>                                      <C>                                      <C>
150 York Street, Suite 1506              Medcan Health Management                 June 1, 1998 to May 31, 2003
</TABLE>

THE STATE GROUP LIMITED AND SUBSIDIARIES

<TABLE>
<CAPTION>
ADDRESS:                                 LESSOR:                                  PERIOD:
--------                                 -------                                  -------
<S>                                      <C>                                      <C>
2150 Islington Ave.,                     Monogram Place Investments               Nov. 1991 - Oct. 2001
Etobicoke, Ontario

32131 Industrial Rd.,                    SIJL Development Company                 Oct. 1996 - Sept. 2001
Livonia, Michigan

Evansville, Indiana                      Long Par Four Revocable Trust            Jan. 1998 - Dec. 2000

1574 Erin St.,                           M. Kaufmann & M. Thompson                Nov. 1996 - Oct. 2001
Winnipeg, Manitoba

1100 Invicta Drive,                      Dalemont Inc.                            Dec. 1999 - Nov. 2002
Unit #17,
Oakville, Ontario

77 Bessemer Rd.,                         2 Realty Co. Ltd.
London, Ontario

11 Cushman Rd.,                          Covello Carmine Annes
St. Catharines, Ontario

60 Martin Ross Ave.,                     Larry Levenstein
Toronto, Ontario

583 Barton St. E.,                       Carol & Antoniella Martella
Stoney Creek, Ontario

Monogram Place Sign                      Neon Products
Airport Ind. Pkwy., #800,                Kiew Investment Corp.
Breslau, Ontario

245 Strassburg Rd.,                      Doyle Investments
Kitchener, Ontario

P.O. Box 4530,                           Dan Buck Development
Evansville, IN

155 Leonard St.,                         TGS Management Services Ltd., In Trust
Regina, Saskatchewan                     Sun Life Assurance Co.

855 Industrial Ave.,                     Commerce City Rental
Ottawa, Ontario

3430 - 25 St. N.E.                       Beutel Goodman Real Estate
Calgary, AB

17620 - 107 Ave.,                        HMR Properties Inc.
Edmonton, AB

7945 Henn Bourassa,                      Mayor Investment
Montreal, QC
</TABLE>

<PAGE>   131
- 2-

<TABLE>
<S>                                      <C>
32 Voyager Crt.,                         Cole Investment Ltd.
Etobicoke, Ontario

1735 Boundary Place,                     Boundary Place
Vancouver, BC

2 - 4 Cataraqui St.,                     ABNA Investments Ltd.
Unit 15B,
Kingston, Ontario

2342 Wyecroft Rd.,                       B & D Wilkinson Holdings Inc.
Oakville, Ontario

3895 Stadeview Cr., Unit 7,              Erin Mills Development Corporation
Mississauga, Ontario

200 Wright Ave., Unit 1,                 Park Place Investments Ltd.
Dartmouth, NS

35 Goderich Rd., Unit 8,                 Stockrex International
Hamilton, Ontario

13800 State Road 57 North,               Daylight Properties LLC
Evansville, IN

280 Woolrich St. South,                  Krew Investments Corporation
Breslean, Ontario

302-195 The West Mall,                   Oxford Properties Group Inc. & Patrim
Etobicoke, Ontario                       Properties Inc.

2342 Wyercroft Road,                     B&D Wilkinson Holdings Inc.
Oakville, Ontario                        (sublandlord)
</TABLE>

<PAGE>   132
- 3-

                                   ARTICLE 1
                   NATIONWIDE ELECTRIC, INC. AND SUBSIDIARIES

Lease for 1140 Floyd Drive, Lexington, KY between Henderson Family Enterprises,
LLC (lessor) and Parsons Electric Co. (lessee).
Lease for 4502 Poplar Level Road, Louisville, KY between Henderson Family
Enterprises, LLC (lessor) and Parsons Electric Co. (lessee).
Lease for 4391 Creek Road, Blue Ash, OH between Henderson Family Enterprises,
LLC (lessor) and Eagle Electric Holdings, Inc. (lessee).
Lease for 2284 Marietta Boulevard Northwest, Atlanta, GA between Harmony Hill
Partners, L.P. (lessor) and the Allison Company (lessee).
Lease for 5960 N.E. Main Street, Fridley, MN between Donald D. Dolan and Sharon
A. Dolan (lessor ) and Parsons Electric Co. (lessee).
Lease for 4214 Bertsos Drive, Unit #3, Las Vegas, NV between the Bernard Posin
and Sandra K. Posin Revocable Trust (lessor) and Southwest Systems Limited
(lessee).
Sub-lease for 333 South Seventh Street, Suite 2800, Minneapolis, MN between
Nationwide Electric, Inc. (sub-lessee) and Cosgrove, Flynn & Gaskins
(sub-lessor).
Lease for Neal Electric, Inc. Corporate Headquarters at 13250 Kirkham Way,
Poway CA.
Lease for Neal Electric, Inc. storage yard at 1235 Greenfield Drive, E1 Cajon,
CA.
Lease for Southwest Systems Limited office at 6265 South Valley View Drive,
Suites L & M, Las Vegas, Nevada

SYLVAN INDUSTRIAL PIPING, INC. AND RELATED COMPANIES
Lease for Sylvan Industrial Piping of Tennessee, Inc. at 317 Wilhagen Road,
Nashville, TN.
Lease for Sylvan Industrial Piping of NJ, Inc. at 1001 State Street, Perth
Amboy, NJ.
Lease for Sylvan Industrial Piping, Inc. at 815 Auburn Avenue, Pontiac,
Michigan.
Lease for Sylvan Industrial Piping, Inc. at 211 Ridge Road, Georgetown, SC.

BRACKNELL TELECOMMUNICATION SERVICES INC. AND SUBSIDIARIES
Lease for Bracknell Telecommunication Services, Inc. at 6300 Northwest Drive,
Unit B, Mississauga, Ontario.
Lease for Highlight Construction Ltd. at 11218/11220-143 Street, Edmonton,
Alberta.
Lease for Vista Communication Technologies Ltd. at 11208 143 Street, Edmonton,
Alberta.
Lease for Highlight Construction Ltd. at 20108 Logan Avenue, Langley, BC.
Lease for Highlight Antenna & Tower Services Ltd. at 190 Hodsman Road, Regina,
Saskatchewan.
Lease for Highlight Solutions, Inc. at 24711 and 24701 Halstead Road,
Farmington Hills, Michigan.
Lease for Highlight Solutions, Inc. at 145 Southeast Parkway, Franklin,
Tennessee.

SUNBELT INTEGRATED TRADE SERVICES, INC. AND SUBSIDIARIES
Lease for Quality Mechanical Contractors, Inc. at 3175 Westwood Drive, Las
Vegas, Nevada.
Lease for Inglett & Stubbs, Inc. at 5200 River View Road, Mableton, Georgia.
Lease for Quality Mechanical Contractors, Inc. for land usage on Mesa Vista,
Clark County, Nevada
Lease for Quality Mechanical Contractors, Inc. for 3135 Westwood Drive, Las
Vegas, Nevada.
Lease for Schmidt Electric Company, Inc. at 9701 F.M. 1625, Creedmor, Texas.
Lease for Crouch Electric, Inc. at 1106 Smith Road, Austin, Texas.
Lease for Sunbelt Integrated Trade Services, Inc. at B-102, 6655 West Sahara
Avenue, Las Vegas, NV.

<PAGE>   133

                                SCHEDULE 7.01(M)
                                 ENCROACHMENTS

None

<PAGE>   134

                                SCHEDULE 7.01(N)
                              COMPLIANCE WITH LAWS

None

<PAGE>   135
                                SCHEDULE 7.01(P)
                                  SUBSIDIARIES

I. BORROWERS

<TABLE>

<CAPTION>
BORROWER                             JURISDICTION                     SHARE OWNERSHIP (IF A SUBSIDIARY
--------                             ------------                     --------------------------------
<S>                                  <C>                              <C>
Bracknell Corporation                Ontario                          N/A
The State Group                      Ontario                          100% of the outstanding share capital is owned
Limited                                                               by Bracknell Corporation

Nationwide Electric, Inc.            Delaware                         100% of the outstanding share capital is owned
                                                                      by Bracknell Corporation
II.      RESTRICTED SUBSIDIARIES

<CAPTION>

SUBSIDIARY                            JURISDICTION                    SHARE OWNERSHIP
----------                            ------------                    ---------------
<S>                                   <C>                             <C>
The State Services Group Limited      Ontario                         100% of the outstanding share capital is owned
                                                                      by The State Group Limited

The State Group International         Michigan                        100% of the outstanding share capital is owned
Limited                                                               by The State Group Limited

The State Group (USA) Limited         Delaware                        100% of the outstanding share capital is owned
                                                                      by The State Group Limited

Preferred Electric, Inc.              Illinois                        100% of the outstanding share capital is owned
                                                                      by The State Group (USA) Limited

Preferred Electric Construction       Illinois                        100% of the outstanding share capital is owned
Corp.                                                                 by The State Group (USA) Limited

Bracknell Telecommunication           Ontario                         100% of the outstanding share capital is owned
Services Inc.                                                         by Bracknell Corporation

Parsons Electric Holdings Inc.        Delaware                        100% of the outstanding share capital is owned
                                                                      by Nationwide Electric, Inc.

Parsons Electric Co.                  Minnesota                       100% of the outstanding share capital is owned
                                                                      by Parsons Electric Holdings, Inc.

Eagle Electric Holdings, Inc.         Minnesota                       100% of the outstanding share capital is owned
                                                                      by Nationwide Electric, Inc.

Eagle Electric Holdings, Inc.         Delaware                        100% of the outstanding share capital is owned
                                                                      by Nationwide Electric, Inc.

Eagle Electrical Systems, Inc.        Ohio                            100% of the LLC interest is owned by Eagle
                                                                      Electric Holdings, Inc. - Delaware

Southwest Systems Limited             Nevada                          99% of the outstanding share capital is owned by
                                                                      Eagle Electric Holdings, Inc. - Delaware, and 1%
                                                                      owned by Eagle Electrical Systems Inc.

Allison-Smith Company                 Georgia                         100% of the outstanding share capital is owned by Parsons
                                                                      Electric Holdings, Inc.

Henderson Electric Co. Inc.           Delaware                        100% of the outstanding share capital is owned
                                                                      by Parsons Electric Holdings, Inc.

Neal Electric, Inc.                   California                      100% of the outstanding share capital is owned
                                                                      by Parsons Electric Holdings, Inc.
</TABLE>

<PAGE>   136
                                     - 2 -
<TABLE>
<CAPTION>
SUBSIDIARY                            JURISDICTION                    SHARE OWNERSHIP
----------                            ------------                    ---------------

<S>                                   <C>                             <C>
Neal Equipment, LLC                   California                      100% of the outstanding share capital is owned by
                                                                      Parsons Electric Holdings, Inc.

354709 Alberta Ltd.                   Alberta                         100% of the outstanding share capital is owned
                                                                      by Bracknell Corporation

334108 Alberta Ltd.                   Alberta                         100% of the outstanding share capital is owned
                                                                      by Bracknell Corporation

Sylvan Industrial Piping, Inc.        Michigan                        100% of the outstanding share capital is
                                                                      owned by Parsons Electric Holdings, Inc.

Sylvan Industrial Piping of N.J.,     New Jersey                      100% of the outstanding share capital is
Inc.                                                                  owned by Parsons Electric Holdings, Inc.

Sylvan Industrial Piping of           Tennessee                       100% of the outstanding share capital is
Tennessee, Inc.                                                       owned by Parsons Electric Holdings, Inc.

Highlight Construction Ltd.           Alberta                         100% of the outstanding share capital is
                                                                      owned by Bracknell Telecommunications
                                                                      Services Inc.

Vista Communication Technologies      Alberta                         100% of the outstanding share capital is
Ltd.                                                                  owned by Bracknell Telecommunications
                                                                      Services Inc.
Highlight Antenna Services Ltd.       British Columbia                100% of the outstanding share capital is
                                                                      owned by Bracknell Telecommunications
                                                                      Services Inc.

Highlight Antenna & Tower Services    Saskatchewan                    100% of the outstanding share capital is
Ltd.                                                                  owned by Bracknell Telecommunications
                                                                      Services Inc.

Highlight Solutions, Inc.             Delaware                        100% of the outstanding share capital is
                                                                      owned  by Bracknell Telecommunications
                                                                      Services Inc.

Highlight Towers Ontario Ltd.         Ontario                         100% of the outstanding share capital is
                                                                      owned by Bracknell Telecommunications
                                                                      Services Inc.

Sunbelt Integrated Trade Services,    Delaware                        100% of the outstanding share capital is
Inc.                                                                  owned by Parsons Electric Holdings, Inc.

Quality Mechanical Contractors, Inc.  Nevada                          100% of the outstanding share capital is
                                                                      owned by Sunbelt Integrated Trade Services,
                                                                      Inc.

Inglett & Stubbs, Inc.                Georgia                         100% of the outstanding share capital is
                                                                      owned by Sunbelt Integrated Trade Services,
                                                                      Inc.

Crouch Electric, Inc.                 Texas                           100% of the outstanding share capital is
                                                                      owned by Sunbelt Integrated Trade Services,
                                                                      Inc.
</TABLE>

<PAGE>   137
                                     - 3 -
<TABLE>

<CAPTION>
SUBSIDIARY                            JURISDICTION                    SHARE OWNERSHIP
----------                            ------------                    ---------------

<S>                                   <C>                             <C>
Pneu-Temp, Inc.                       Texas                           100% of the outstanding share capital is
                                                                      owned by Sunbelt Integrated Trade Services,
                                                                      Inc.

Crouch Industries LLC                 Texas                           100% of the outstanding share capital is owned by
                                                                      Sunbelt Integrated Trade Services, Inc.

Schmidt Electric Company, Inc.        Texas                           100% of the outstanding share capital is
                                                                      owned by Sunbelt Integrated Trade Services,
                                                                      Inc.

Bracknell Facilities                  Delaware                        100% of the outstanding share capital is
Services Inc.                                                         owned by Nationwide Electric, Inc.

1406883 Ontario Limited               Ontario                         100% of the outstanding share capital is
                                                                      owned by Bracknell Corporation.

3041768 Nova Scotia Company           Nova Scotia                     100% of the outstanding share capital is
                                                                      owned by Bracknell Limited Partnership

Bracknell B (Wyoming) LLC             Wyoming                         100% of the outstanding share capital is
                                                                      owned by 3041768 Nova Scotia Company

Bracknell A (Wyoming) LLC             Wyoming                         100% of the outstanding common shares are held by
                                                                      Bracknell B (Wyoming) LLC and 100% of the preferred
                                                                      shares are held by 3041768 Nova Scotia Company
</TABLE>

<PAGE>   138
                                     - 4 -

III.     ADDITIONAL SUBSIDIARIES WHICH ARE NOT RESTRICTED SUBSIDIARIES

<TABLE>
<CAPTION>
SUBSIDIARY                            JURISDICTION                    SHARE OWNERSHIP
----------                            ------------                    ---------------
<S>                                   <C>                             <C>
1341996 Ontario Inc.                  Ontario                         100% of the outstanding share capital is owned
                                                                      by Bracknell Corporation

1357248 Ontario Inc.                  Ontario                         100% of the outstanding share capital is owned
                                                                      by Bracknell Corporation

1016968 Ontario Inc.                  Ontario                         100% of the outstanding share capital is owned
                                                                      by Bracknell Corporation

ICS Automation Inc.                   Delaware                        100% of the outstanding share capital is owned
                                                                      by The State Group Limited

AOC Canada Ltd.                       Newfoundland                    50% of the outstanding share capital is owned
                                                                      by Bracknell Corporation

AOC Brown & Root Canada Ltd.          Newfoundland                    60% of the outstanding share capital is owned
                                                                      by AOC Canada Ltd.

Les Services de Gestion Clientech     Canada                          100% of the outstanding share capital is owned
Inc./Clientech Management Services                                    by Bracknell Corporation
Inc.

Cahill-State Atlantic Ltd.            Newfoundland                    100% of the outstanding share capital is owned
                                                                      by Bracknell Corporation
IV.      Partnerships

<CAPTION>
Subsidiary                            Jurisdiction                    Share Ownership
----------                            ------------                    ---------------
<S>                                  <C>                              <C>
Bracknell Limited Partnership         Nevada                          1406883 Ontario Limited (General Partner and
                                                                      0.1% limited partner), The State Group Limited
                                                                      (79.9% limited partner), The State Services
                                                                      Group Limited (15% limited partner), Highlight
                                                                      Construction Ltd. (5% limited partner)
</TABLE>

<PAGE>   139

                                SCHEDULE 7.01(Q)
                             BURDENSOME AGREEMENTS

None

<PAGE>   140

                                SCHEDULE 7.01(R)
                                   LITIGATION

See attached Summary of Pending Litigation.

<PAGE>   141

                                SCHEDULE 7.01(S)
                              ENVIRONMENTAL MATTERS

None

<PAGE>   142

                                SCHEDULE 7.01(T)
                                  PENSION PLANS

BRACKNELL CORPORATION

Group Insurance Plan under Great West Life Policy #151157

THE STATE GROUP LIMITED AND SUBSIDIARIES

Manufacturer's Life Policy GN8130008
Long Term Disability Provident Life & Accident Insurance Policy 190759
Humana Employers U.S. Health and Dental Policy #5127224
Group Insurance Plan under Great West Life Policy #151277
Manulife Financial Policy 54438 401K Plan
UNUM Life Insurance Long Term Disability and AD&D
The State Group Limited makes employer contributions to medical and pension
benefits for hourly workers under multi-employer pension and benefit plans
administered through trade unions as per the collective agreements.

NATIONWIDE ELECTRIC, INC.
Parsons Electric Co.
     Profit Sharing Plan
     Money Purchase Plan
     Multi-Employer Defined Benefit Plan (union)
Allison-Smith Company
     401(k) Plan
     Profit Sharing Plan
     Union Administered Retirement Plan
Henderson Electric Co.
     HB Holding Co. Profit Sharing Plan
Neal Electric, Inc.
     Profit Sharing
     Union Administered Retirement Plan

SYLVAN INDUSTRIAL PIPING, INC. AND SUBSIDIARIES
         Money Purchase Pension Trust
         Profit Sharing Trust

SUNBELT INTEGRATED TRADE SERVICES, INC. AND ITS SUBSIDIARIES
         Crouch Industries, LLC
                  Defined Benefit Pension Plan and Trust
         Inglett & Stubbs, Inc.
                  Profit Sharing Plan and Trust
         Quality Mechanical Contractors, Inc.
                  Quality Air Conditioning, Inc. Salary Reduction Plan
                  Flexible Benefits Plan

<PAGE>   143

                                SCHEDULE 7.01(U)
                               MATERIAL AGREEMENTS

1.       Agreement between Gold Turner, A Joint Venture and Neal Electric, Inc.
         dated October 12, 1998 as amended, relating to electrical services for
         the San Diego, CA Convention Centre (US $11,800,000).

2.       Agreement between Kiewit Pacific Co. and Neal Electric, Inc. dated
         October 6, 1998 as amended, relating to the South Bay Water Reclamation
         (US $7,400,000).

3.       Agreement between Huber, Hunt & Nichols, Inc. and The State Group
         Limited, dated March 19, 1999, relating to electrical services for the
         Northwest Airlines Terminal Infield Project (C$72,750,000).

4.       Agreement between NKK Steel Engineering, Inc. and The State Group
         International Limited, dated September 24, 1999, relating to mechanical
         installation, piping and electrical work for No. 1 Continuous
         Galvanizing Line Plan in Detroit (C$46,350,000).

5.       Standing Purchase Order Agreement between Ford Motor Company of Canada,
         Limited and The State Group Limited, relating to ongoing construction
         Commodity Management Blanket Order -- from June 22, 1999 through June
         22, 2002 (C$35,800,000).

6.       Agreement between J.A. Tiberti Construction, Inc. and Quality
         Mechanical Contractors, Inc. dated November 16, 1999 relating to the
         construction of the Sun Coast Hotel & Casino (US$9,231,100).

7.       Agreement between Kitchell Contractors and Quality Mechanical
         Contractors, Inc., dated November 23, 1998, relating to the
         construction of St. Rose Dominican Hospital (US$6,915,500).

8.       Agreement between A.F. Construction Company and Quality Mechanical
         Contractors, Inc. dated December 7, 1999, relating to the construction
         of the Clark County Regional Justice Center (US$16,709,000).

9.       Agreement between Holder Construction Company and Inglett & Stubbs,
         Inc., dated December 7, 1998, relating to the construction of the State
         Farm Corporate South Addition (US$28,830,547).

10.      Agreement between Holder Construction Company and Inglett & Stubbs,
         Inc., dated September 7, 1999, relating to the E*Trade Technical
         Operations Center (US$21,120,181).

11.      Agreement between Atlanta Arena Contractors and Inglett & Stubbs, Inc.,
         dated April 18, 1998, relating to the Atlanta Arena Facility
         (US$9,084,500).

12.      Agreement between Whiting-Turner/A.L. Johnson and Inglett & Stubbs,
         Inc. dated October 15, 1997, relating to the Center for Disease Control
         (US$49,322,735).

13.      Agreement between The State Group Limited and Process Systems Inc.
         (PSI) dated May, 2000 to install heating and cooling units and
         associated piping and electrical provide services at the Ford Motor
         Company plant in Oakville, Ontario (US$5,600,000) There is not one PO
         but several sectionalized PO's

14.      Agreement between The State Group Limited and JNE Engineering Inc.
         commencing September 1998 to install floor standing equipment including

<PAGE>   144
                                     - 2 -

         millwrighting, piping and electrical services at the Stelco steel plant
         in Hamilton, Ontario. (CDN$6,900,000)

15.      Agreement between The State Group Limited and Dofasco to construct a
         galvanizing line. (CDN$43,000,000) This job is 99% complete.

16.      Agreement between The State Group Limited and Vanbots Construction
         Corporation dated May, 1998 to provide electrical and communication
         installations at the Province of Ontario's Maplehurst Correctional
         Facility. (CDN$10,600,000)

17.      Agreement between The State Group Limited and BFC Buildings, a Division
         of BFC Construction Group Inc., dated April 1, 1999 to provide
         electrical services for Call Net's new building construction. (CDN$8.3
         million)

18.      Agreement between The State Group Limited and Urbacon Limited dated
         January 1, 2000 to provide power distribution, electrical and fire
         alarm installation services on a data centre for PSINet at 73 Laird
         Drive. (CDN$5,400,000)

19.      Agreement between Inglett & Stubbs and Batson-Cook and to provide
         electrical services for a data centre. (US$30,000,000)

20.      Agreement between Inglett & Stubbs and Hardin to provide electrical
         services for an office building. (US$16,000,000)

21.      Agreement between Inglett & Stubbs and Whiting-Turner Contracting
         Company to provide electrical services at an R&D center. (US$8,500,000)

22.      Agreement between Inglett & Stubbs and Whiting-Yurner Contracting

         Company dated July 16, 1997 to provide electrical services to the
         Center for Disease Control construction of an R&D laboratory.
         (US$6,500,000)

23.      Agreement between Inglett & Stubbs and Holder Construction Company
         dated February 15, 2000 to provide electrical services for the
         construction of a data center. (US$9,800,000)

24.      Agreement between Schmidt Electric, Inc. and White Construction Company
         dated November 23, 1999 to provide electrical services to construct a
         data center for Dell.

25.      Agreement between Schmidt Electric, Inc. and the Austin (Texas)
         Independent School District to provide electrical power and service
         upgrades for computers in 102 schools within the Austin, Texas School
         district.

26.      Agreement between Allison Smith Company and Nova Corporation dated
         March 16, 2000 to provide electrical services for the construction of a
         new building at 101 Aquila Way, Lithia Springs, Georgia (US$5,885,779).
         This job is 90% complete.

27.      Agreement between Allison Smith Company and Beers Construction Company
         dated August 17, 1999 to provide electrical services to Southern
         Energy, Inc. at 1155 Perimeter Center West, Atlanta, Georgia
         (US$6,080,434) This job is in excess of 99% complete.

28.      Agreement between Sylvan Industrial Piping, Inc. and DeMaria Building
         Company Inc. dated September 7, 1999 to provide mechanical services at
         the General Motors Milford, Michigan plant.

<PAGE>   145
                                     - 3 -

29.      Agreement between Henderson Electric Co., Inc. and F.A. Wilhelm
         Construction Co. Inc. to provide electrical services at Caesars World
         Indiana (US$5,205,590) This contract is 92% complete.

30.      Agreement between Parsons Electric Co. and McGough Construction dated
         August 6, 1999 to provide electrical installation and services for
         Division 16 (US$6,502,924)

31.      Agreement between Parsons Electric Co. and Kraus Anderson dated August
         6, 1999 to provide electrical installation and services for ADC
         Telecommunications (US$8,197,242)

32.      Agreement between Parsons Electric Co. and McGough Construction dated
         August 6, 1999 to provide electrical installation and services for St.
         John's Hospital, Minneapolis, Minnesota (US$5,714,748)

33.      Agreement between Bracknell Facilities Services Inc. and Clark Oil to
         provide facilities services management (US$50,000,000).

<PAGE>   146

                                SCHEDULE 7.01(V)
                                 LABOUR MATTERS

The State Group Limited and Nationwide Electric, Inc. are subject to the
following collective agreements through participation in industry management
associations:

1.       Boilermaker Contractors-Association Alberta Memorandum of Agreement,
         effective May 1, 1999 to April 30, 2001.

2.       Collective Agreement between Electrical Contractors Association of
         Alberta and Local Union 254 of the International Brotherhood of
         Electrical Workers and Local Union 424 of the International Brotherhood
         of Electrical Workers, effective September 2, 1997.

3.       1998 Collective Agreement between Electrical Contractors Trade Division
         C.L.R.A. of Manitoba and Local Union 2085 of the International
         Brotherhood of Electrical Workers effective May 1, 1998 to April 30,
         2001.

4.       Collective Agreement between Ontario Erectors association, Incorporated
         and Ontario Erectors Association and International Association of
         Bridge, Structural, Ornamental and Reinforcing Iron Workers and Iron
         Workers District Council of Ontario, May 1, 1998 to April 30, 2001.

5.       Collective Agreement between Electrical Contractors Association of New
         Brunswick Inc. and Local Union No. 502 of the International Brotherhood
         of Electrical Workers, effective March 15, 1999, and expiring December
         31, 2001.

6.       Collective Agreement between St. John Construction Association and the
         United Brotherhood of Carpenters and Joiners Local #1386. 7. Millwright
         Agreement, Province of Nova Scotia, 1998 - 2001, between Construction
         Management Bureau Limited and the Millwrights and Machine Erectors
         Local Union 1178.

8.       Provincial Electrical Agreement between the Unionized Employers in the
         Electrical Trade Division of the Construction Industry, and Local
         Unions 529 and 2038 of the International Brotherhood of Electrical
         Workers, effective May, 1998 and expired April 30, 2001 (Saskatchewan)
         (to be replaced).

9.       Ontario Provincial Collective Agreement between the Mechanical
         Contractors Association of Ontario, and the Ontario Pipe Traders
         council, effective May 15, 1998 to April 30, 2001.

10.      Collective Agreements between Construction Labour Relations Association
         of B.C. and Local 170 of the United Association of Journeymen and
         Apprentices of the Plumbing and Pipe Fitting Industry, 1994 - 1998.

11.      Articles of Agreement between the International Brotherhood of
         Boilermakers, Iron Ship Builders, Blacksmiths, Forgers and Helpers and
         the Boilermaker Contractors' Association, effective August 23, 1998 to
         June 30, 2001.

12.      Construction Collective Agreement (1998) between the Ontario
         Refrigeration and Air Conditioning Association, and Local 787 of the
         United Association of Journey Persons and Apprentices of the Plumbing
         and Pipe Fitting Industry of the United States and Canada.

<PAGE>   147
                                     - 2 -

13.      Collective Agreement between the Association of Millwrighting
         Contractors of Ontario Inc. and the Millwright District Council of
         Ontario, United Brotherhood of Carpenters and Joiners of America,
         effective September 18, 1995 to April 30, 1998 (expired - to be
         replaced).

14.      Principal Agreements between the Electrical Trade Bargaining Agency of
         the Electrical Contractors Association of Ontario and the International
         Brotherhood of Electrical Workers and the IBEW Construction council of
         Ontario, expiry date of April 30, 2001.

15.      Collective Agreement between the Association of Millwrighting
         Contractors of Ontario, Inc. and the Millwright District council of
         Ontario, United Brotherhood of Carpenters and Joiners of America,
         effective August 10, 1998 to April 30, 2001.

16.      Cape Breton Industrial Projects Collective Agreement 1996 - 1999
         between construction Management Bureau Limited and Various Building
         Trade Unions, effective July 1, 1996 and expired June 30, 1999 (to be
         replaced).

17.      Cape Breton Commercial Projects Collective Agreement 1996 - 1999
         between construction Management Bureau Limited and Various Building
         Trade Unions, effective July 1, 1996 and expired June 30, 1999 (to be
         replaced).

18.      Principal Agreement between the Electrical Contractors Association of
         the City of Chicago and Local Union No. 134 International Brotherhood
         of Electrical Workers dated August 25, 1991 as amended May 31, 1999.

19.      Agreement between Atlanta Chapter NECA and IBEW Local 613, effective
         until 8-31-00 (Allison-Smith Company).

20.      Working Agreement between Evansville Division, southern Indiana Chapter
         NECA and Henderson Electric Co. Inc.).

21.      Inside Agreement between Arkansas Chapter NECA and IBEW Local 295,
         effective until 9-1-99 (Parsons Electric Co.).

22.      Inside construction South Florida Chapter of NECA and IBEW Local 349,
         effective until terminated (Parsons Electric Co.).

23.      Agreement between Northern Illinois Chapter of NECA and IBEW Local 354,
         effective until 5-31-99 (Parsons Electric Co.).

24.      Inside Construction and maintenance Agreement between Minneapolis
         Chapter of NECA and IBEW Local 292, effective until 4-30-00 (Parsons
         Electric Co.).

25.      Inside Construction Agreement between South Central Minnesota Chapter
         of NECA and IBEW Local 343, effective until 5-31-99 (Parsons Electric
         Co.).

26.      Agreement between S.P.A.C.E. and IBEW Local 100, 242, 292, 294, 343,
         426 and 1426, effective until terminated (Parsons Electric Co.)

27.      Agreement between Associated General Contractors of Minnesota of
         International union of Operating Engineers, Local 49, effective until
         terminated (Parsons Electric Co.).

28.      Agreement covering Motor Repair Shops between Minneapolis Chapter NECA
         and IBEW Local 292, effective until terminated (Parsons Electric Co.).

29.      Inside Construction and Maintenance Agreement between St. Paul Chapter
         NECA and IBEW Local 110, effective until 4-30-00 (Parsons Electric Co.)

<PAGE>   148
                                     - 3 -

30.      Agreement between Metropolitan Detroit Plumbing & Mechanical
         Contractors Association, Inc. and Plumbing, Heating and Cooling
         Contractors Association of South Eastern Michigan, Inc. and Journeyman
         Plumbers Local No. 98 of Detroit, Michigan, effective June 1, 1998
         through May 31, 2001.

31.      Agreement between Metropolitan Detroit Plumbing & Mechanical
         Contractors Association, Inc. and Journeyman Pipefitters,
         Refrigeration, and Air Conditioning Service Local 636 of Detroit,
         Michigan, effective June 1, 1998 through May 31, 2001.

32.      Working Agreement between Plumbers and Pipefitters UA Local 572 and The
         Master Plumbing, Heating, Piping and Air Conditioning Contractors of
         Nashville and Vicinity, effective May 1, 1998 through April 30, 2001.

33.      Collective Bargaining Agreement between Local Union No. 9 of the United
         Association of Journeyman and Apprentices of the Plumbing and
         Pipefitting Industry of the United States and Canada, AFL-CIO and
         Mechanical Contractors Association of New Jersey, Inc. effective July
         1, 1998 to June 30, 2001.

34.      Agreement between Steamfitters, Pipefitters and Apprentices Local Union
         No. 475 of Essex County, Union County, Portions of Hunterdon, Mercer,
         Middlesey, Morris, Somerset and Warren Counties and all of their
         Territories in New Jersey and the Mechanical Contractors Association of
         New Jersey, effective May 1, 1999 to April 30, 2002.

35.      Agreement between Local Union No. 274 of the United Association of
         Journeymen and Apprentices of the United States and Canada, AFL-CIO and
         Mechanical Contractors Association of New Jersey, effective May 1, 1998
         to April 30, 2001.

36.      Union Agreement between Sheet Metal Workers' International Association
         Local Union No. 88 and SMACNA of Southern Nevada, Inc. effective July
         1, 1996 to June 30, 2001.

37.      Master Labour Agreement between Mechanical Contractors Association,
         Inc. and United Association of Journeyman and Apprentices of the
         Plumbing and Pipe Fitting Industry of the United States and Canada,
         Local Union No. 525, Las Vegas, Nevada effective June 1, 1997 to June
         1, 2001.

38.      Agreement between Austin Division of the Southeast Texas Chapter of
         National Electrical Contractors Association, Inc. and Local Union No.
         520 of the International Brotherhood of Electrical Workers, Austin,
         Texas dated June 4, 1997.

39.      Inside Wireman Agreement between Local Union No. 26, International
         Brotherhood of Electrical Workers and the Washington, D.C. Chapter,
         National Electrical Contractors Association effective June 1, 1997 -
         May 31, 2000.

40.      Inside Construction Agreement between Atlantic Coast Chapter, National
         Electrical Contractors Association and Local Union 553, International
         Brotherhood of Electrical Workers effective December, 1997.

<PAGE>   149
                                     - 4 -

41.      Working Agreement between Plumbers and Pipefitters U.A. Local 572 and
         The Master Plumbing, Heating, Piping and Air Conditioning contracts of
         Nashville and vicinity, effective May 1, 1998 through April 30, 2001.

42.      Collective Bargaining Agreement between Local Union No.9 of the United
         Association of Journeymen and Apprentices of the Plumbing and
         Pipefitting Industry of the United States of Canada, AFL-CIO and
         Mechanical Contractors Association of New Jersey, Inc., effective July
         1, 1998 to June 30, 2001.

43.      Agreement between Steamfitters, Pipefitters and Apprentices Local Union
         No. 475 of Essex County, Union County, portions of Hunterdon, Mercer,
         Middlesex, Morris, Somerset and Warren Counties and all of their
         territories in New Jersey and the Mechanical Contractors Association of
         New Jersey, effective May 1, 1999 to April 30, 2002.

44.      Agreement between Local Union No. 274 of the United Association of
         Journeymen and Apprentices of the United States and Canada, AFL-CIO and
         Mechanical Contractors Association of New Jersey, effective May 1, 1998
         to April 30, 2001.

45.      Millwright & Machine Erectors Construction Agreement dated January 1,
         2000.

46.      Ironworkers Agreement (Structural & Miscellaneous Steel) between The
         State Group Limited and the International Association of Bridge,
         Structural, Ornamental and Reinforcing Ironworkers Local Union No.
         842, effective May 1, 2000 to April 30, 2003.

47.      Industrial Collective Agreement between the United Brotherhood of
         Carpenters and Joiners of America, Local 1386 and the Moncton Northeast
         Construction Association, Inc. (The State Group Limited).

48.      Collective Agreement between the Electrical Contractors Association of
         New Brunswick, Inc. and Local Union No. 502 of the International
         Brotherhood of Electrical Workers, effective March 15, 1999 to December
         31, 2001 (The State Group Limited).

49.      Collective Agreement between the Electrical Contractors Association of
         New Brunswick, Inc. and Local Union 2166 of the International
         Brotherhood of Electrical Workers, effective February 21, 2000 to June
         30, 2002 (The State Group Limited).

50.      Collective Agreement between the Saint John Mechanical Contractors
         Employers Association and the U.A. Plumbers & Pipefitters Union Local
         No. 213, effective January 18, 1999 to June 30, 2001.

51.      Electrical Agreement between The Construction Management Bureau Limited
         (Nova Scotia) and The International Brotherhood of Electrical Workers
         Local Union No. 625, effective November 9, 1998 to April 30, 2001.

52.      Mechanical Industrial Collective Agreement between the Construction
         Management Bureau Limited (Nova Scotia) and Antigonish Local Union No.
         244, United Association of Journeymen and Apprentices of the Plumbing,
         Steam-Fitting and Pipefitting Industry of the United States and Canada,
         effective November 30, 1998 to April 30, 2001.

<PAGE>   150
                                     - 5 -

53.      Mechanical Collective Agreement Local 56 between Construction
         Management Bureau Limited and the United Association of Journeymen and
         Apprentices of the Plumbing, Steamfitting and Pipefitting Industry of
         the United States and Canada, Local Union 56, effective October 19,
         1998 to April 30, 2001.

54.      Ironworker Agreement between Construction Management Bureau Limited and
         International Association of Bridge, Structural and Ornamental
         Ironworkers, Local Union 752, effective March 22, 1999 to April 30,
         2001.

55.      Millwright Agreement between Construction Management Bureau Limited and
         The Millwrights and Machine Erectors, Local Union 1178, effective July
         1, 1998 to April 30, 2001.

56.      Cape Breton Commercial Products Collective Agreement between
         Construction Management Bureau Limited and various Trade Unions,
         effective July 16, 1999 to June 30, 2002.

57.      Cape Breton Industrial Projects Collective Agreement between
         Construction Management Bureau, Limited and The Cape Breton Island
         Building & Construction Trades Counsel, effective July 16, 1999 to June
         30, 2002.

<PAGE>   151

                                SCHEDULE 7.01(Y)
                               CORPORATE STRUCTURE

The following is a list of the beneficial shareholders of Bracknell Corporation,
the number of common and preferred shares owned with the percentage of common or
preferred shares in parentheses:

1.       Reardon Capital Management: 2,546,140 common shares (6.3%).

2.       Lincluden Management Ltd.: 2,814,002 common shares (7.0%).

3.       Phillips Hager & North Investment Ltd.: 2,504,000 common shares (6.2%).

4.       Investors Group Inc.: 2,572,700 common shares (6.4%)

<PAGE>   152

                                   SCHEDULE 8

                           LIST OF SECURITY DOCUMENTS

BRACKNELL

1.       Amended and Restated Guarantee given by Bracknell, State, SSG, BTS,
         HAT, HTO and HAS in favour of the Administrative Agent.

2.       Amended and Restated General Security Agreement between Bracknell,
         State, SSG, BTS, HAT, HTO and HAS and the Administrative Agent.

3.       Amended and Restated Securities Pledge Agreement between Bracknell and
         the Administrative Agent.

THE STATE GROUP LIMITED ("STATE")

1.       Amended and Restated Guarantee given by Bracknell, State, SSG, BTS,
         HAT, HTO and HAS in favour of the Administrative Agent.

2.       Amended and Restated General Security Agreement between Bracknell,
         State, SSG, BTS, HAT, HTO and HAS and the Administrative Agent.

3.       Amended and Restated Securities Pledge Agreement between Bracknell,
         State, SSG, BTS, HAT, HTO and HAS and the Administrative Agent.

4.       Pledge of Partnership Interest in Bracknell LP in favour of the
         Administrative Agent.

THE STATE SERVICES GROUP LIMITED ("SSG")

1.       Amended and Restated Guarantee given by Bracknell, State, SSG, BTS,
         HAT, HTO and HAS in favour of the Administrative Agent.

2.       Amended and Restated General Security Agreement between Bracknell,
         State, SSG, BTS, HAT, HTO and HAS and the Administrative Agent.

3.       Pledge of Partnership Interest in Bracknell LP in favour of the
         Administrative Agent.

NATIONWIDE AND THE U.S. SUBSIDIARIES

1.       Amended and Restated Guarantee and Collateral Agreement among
         Nationwide, PEH, PEC, SSL, EEHM, EEHD, EES, ASC, HEC, NEI, NE, NELLC,
         SGIL, SGUSA, PEI and PECC in favour of the Administrative Agent.

<PAGE>   153
                                     - 2 -

354709 ALBERTA INC. ("354709")

1.       Amended and Restated Guarantee given by 354709 in favour of the
         Administrative Agent.

2.       Amended and Restated General Security Agreement between 354709 and the
         Administrative Agent.

334108 ALBERTA INC. ("334108")

1.       Amended and Restated Guarantee given by 334108 in favour of the
         Administrative Agent.

2.       Amended and Restated General Security Agreement between 334108 and the
         Administrative Agent.

BRACKNELL TELECOMMUNICATION SERVICES INC. ("BTS")

1.       Amended and Restated Guarantee given by Bracknell, State, SSG, BTS,
         HAT, HTO and HAS in favour of the Administrative Agent.

2.       Amended and Restated Security Agreement between Bracknell, State, SSG,
         BTS, HAT, HTO and HAS and the Administrative Agent.

3.       Amended and Restated Securities Pledge Agreement between Bracknell,
         State, SSG, BTS, HAT, HTO and HAS and the Administrative Agent.

VISTA COMMUNICATION TECHNOLOGIES LTD. ("VISTA")

1.       Amended and Restated Guarantee given by Vista in favour of the
         Administrative Agent.

2.       Amended and Restated Security Agreement between Vista and the
         Administrative Agent.

HIGHLIGHT ANTENNA & TOWER SERVICES LTD. ("HAT")

1.       Amended and Restated Guarantee given by Bracknell, State, SSG, BTS,
         HAT, HTO and HAS in favour of the Administrative Agent.

2.       Amended and Restated Security Agreement between Bracknell, State, SSG,
         BTS, HAT, HTO and HAS and the Administrative Agent.

HIGHLIGHT TOWERS ONTARIO LTD. ("HTO")

1.       Amended and Restated Guarantee given by Bracknell, State, SSG, BTS,
         HAT, HTO and HAS in favour of the Administrative Agent.
<PAGE>   154

                                     - 3 -

2.       Amended and Restated Security Agreement between Bracknell, State, SSG,
         BTS, HAT, HTO and HAS and the Administrative Agent.

HIGHLIGHT ANTENNA SERVICES LTD. ("HAS")

1.       Amended and Restated Guarantee given by Bracknell, State, SSG, BTS,
         HAT, HTO and HAS in favour of the Administrative Agent.

2.       Amended and Restated Security Agreement between Bracknell, State, SSG,
         BTS, HAT, HTO and HAS and the Administrative Agent.

HIGHLIGHT CONSTRUCTION LTD. ("HCL")

1.       Amended and Restated Guarantee given by HCL in favour of the
         Administrative Agent.

2.       Amended and Restated Security Agreement between HCL and the
         Administrative Agent.

3.       Pledge of Partnership Interest of Bracknell LP in favour of the
         Administrative Agent.

1406883 ONTARIO LIMITED ("1406883")

1.       Guarantee given by 1406883 in favour of the Administrative Agent.

2.       Security Agreement between 1406883 and the Administrative Agent.

3.       Pledge of Partnership Interest in Bracknell LP in favour of the
         Administrative Agent.

4.       Collateral Covenant Agreement given by 1406883 in favour of the
         Administrative Agent.

3041768 NOVA SCOTIA COMPANY ("3041768")

1.       Guarantee given by 3041768 in favour of the Administrative Agent.

2.       Security Agreement between 3041768 and the Administrative Agent.

3.       Securities Pledge Agreement given by 3041768 in favour of the
         Administrative Agent.

4.       Collateral Covenant Agreement given by 3041768 in favour of the
         Administrative Agent.

<PAGE>   155
                                     - 4 -

BRACKNELL A (WYOMING) LLC ("BRACKNELL A")

1.       Guarantee and Collateral Agreement among Bracknell LP, Bracknell A and
         Bracknell B.

2.       Assignment of Security (re: Security Agreement given by Nationwide
         Subsidiaries) given in favour of the Administrative Agent.

3.       Collateral Covenant Agreement given by Bracknell A in favour of the
         Administrative Agent.

BRACKNELL B (WYOMING) LLC ("BRACKNELL B")

1.       Guarantee and Collateral Agreement among Bracknell LP, Bracknell A and
         Bracknell B.

2.       Collateral Covenant Agreement given by Bracknell B in favour of the
         Administrative Agent.

<PAGE>   156

                                SCHEDULE 8.01(s)

                              INACTIVE SUBSIDIARIES

1016968 Ontario Inc.

816591 Ontario Inc.

Tritech Energy Corporation

Technical Environmental Services (Dartmouth) Limited

1184123 Ontario Inc.

ICS Automation Inc.

Cahill - State Atlantic Ltd.

<PAGE>   157

                                SCHEDULE 8.02(A)
                                 PERMITTED DEBT

1.       Irrevocable Standby Letter of Credit No. P136055TO7512 dated March 8,
         1999 in the amount of $946,230.51 issued by the Royal Bank of Canada in
         favour of 1341996 Ontario Inc., on the application of Bracknell
         Corporation.

2.       Irrevocable Standby Letter of Credit No. P136070TO7512 dated March 8,
         1999 in the amount of $1,000,000 issued by the Royal Bank of Canada in
         favour of 1341777 Ontario Inc., on application of Bracknell
         Corporation.

3.       Indemnity Agreement dated May 13, 1999 between the Royal Bank of Canada
         and Bracknell Corporation in which Bracknell Corporation agrees to pay
         50% of a $5,300,000 Letter of Guarantee (no. M10583) to Profac
         Facilities Management Services Inc.

4.       Indemnity Agreement dated May 13, 1999 between the Royal Bank of Canada
         and Bracknell Corporation in which Bracknell Corporation will pay 50%
         of a $9,100,000 Letter of Guarantee (No. M105834) to Profac Facilities
         Management Services Inc.

5.       Indemnity Agreement dated May 12, 1996 between ProFac Management Group
         Limited, Bracknell Corporation, SNC-Lavalin Inc. and London Guarantee
         Insurance

6.       Indemnity Agreement dated September 9, 1992 between Bracknell
         Corporation and Wellington Insurance Company

7.       Indemnity Agreement dated September 19, 1994 between The State Group
         Limited and/or TCS Total Construction Solutions Inc., Bracknell
         Corporation and Wellington Insurance Company

8.       Indemnity Agreement dated February 3, 2000 between the St. Paul Surety
         Group of Companies, Bracknell Corporation and Nationwide Electric, Inc.

9.       Promissory Note issued in connection with Sunbelt Integrated Trade
         Services, Inc.'s unit offering, having an aggregate principal amount of
         US$1,150,000.

10.      Promissory Notes issued in connection with Sunbelt Integrated Trade
         Services, Inc.'s Tranche A Offering, having an aggregate principal
         amount of US$850,000.

<PAGE>   158

                                SCHEDULE 8.02(B)
                                 PERMITTED LIENS

1.       Liens in favour of the Royal Bank of Canada perfected by the
         registration made under the Personal Property Security Act (Alberta)
         (the "Alberta PPSA") by the Royal Bank of Canada as a secured party
         against Bracknell Corporation as debtor on September 9, 1996 as
         registration number 96090909464, against collateral described as all
         accounts, chattel paper and instruments as defined in the Alberta PPSA,
         and all records thereof owing to Bracknell Corporation by Cablecom
         International Network Cabling Inc., and proceeds of goods, inventory,
         chattel paper, securities, documents of title, instruments, money,
         intangibles and accounts (all as defined in the Alberta PPSA and
         insurance proceeds.

2.       Liens in favour of the Royal Bank of Canada perfected by the
         registration made under the Alberta PPSA by the Royal Bank of Canada as
         a secured party against Cablecom International Network Cabling Inc. as
         debtor on September 9, 1996 as registration number 96090909506, against
         collateral described as all accounts, chattel paper and instruments as
         defined in the Alberta PPSA, and all records thereof, and proceeds of
         goods, inventory, chattel paper, securities, documents of title,
         instruments, money, intangibles and accounts (all as defined in the
         Alberta PPSA) and insurance proceeds.

3.       Lien in favour of Comerica Bank perfected by the registration made
         under the Michigan UCC by Comerica Bank as a secured party against
         Sylvan Industrial Piping, Inc. as debtor on July 29, 1996, as
         registration nos. D121969 and D121970.

4.       Lien in favour of The Frost National Bank perfected by a registration
         made under the Texas UCC by The Frost National Bank as secured party
         against Crouch Industries LLC as debtor on February 3, 1999 as
         registration number 99-023627.

5.       Lien in favour of Cattlemens State Bank, assignee of Victoria Bank &
         Trust, Norwest Bank Texas, South Central and Norwest Bank Texas, N.A.
         perfected by a registration made under the Texas UCC by Cattlemens
         State Bank as secured party against Schmidt Electric Company, Inc. as
         debtor on July 29, 1987 as registration number 87 00200730.

6.       Lien in favour of Norwest Bank Texas, N.A. perfected by a registration
         made under the Texas UCC by Norwest Bank Texas, N.A. as secured party
         against Schmidt Electric Company, Inc. as debtor on July 28, 1998 as
         registration number 98 00153136.

7.       Lien in favour of Bank One, Kentucky, NA perfected by a registration
         made under Kentucky-Jefferson County UCC by Bank One, Kentucky, NA as
         secured party against Henderson Electric Co. Inc. as debtor on April 8,
         1999 as registration number 99-02589.

8.       Lien in favour of Liberty National Bank and Trust Company of Kentucky
         perfected by a registration made under Kentucky-Jefferson County UCC by
         Liberty National Bank and Trust Company of Kentucky as secured party

<PAGE>   159

- 2 -

         against Henderson Electric Co., Inc. as debtor on September 30, 1994 as
         registration number 94-08745.

9.       Security interest in favour of Smith Road LLC pursuant to a lease dated
         January 1, 1997 between Smith Road LLC, as landlord, and Crouch
         Industries LLC, as tenant, wherein the Landlord is granted a security
         interest in all equipment, inventory, fixtures, consumer goods, goods
         and any and all personal property of any kind or character which may be
         placed in the Premises and also upon all proceeds of any insurance
         which may accrue to the Tenant by reason of damage to or destruction of
         any such property.

10.      Lien in favour of First Security Bank of Nevada perfected by a
         registration made under Nevada UCC by First Security Bank of Nevada as
         secured party against Sunbelt Integrated Trade Services, Inc. as debtor
         on July 30, 1999 as registration number 9911822.

11.      Lien in favour of First Security Bank of Nevada perfected by a
         registration made under Florida UCC by First Security Bank of Nevada as
         secured party against Sunbelt Integrated Trade Services, Inc. as debtor
         on August 17, 1999 as registration number 188883.

12.      Lien in favour of First Security Bank of Nevada perfected by a
         registration made under Delaware UCC by First Security Bank of Nevada
         as secured party against Sunbelt Integrated Trade Services, Inc. as
         debtor on July 30, 1999 as registration number 199939360.

13.      Lien in favour of First Security Bank of Nevada perfected by a
         registration made under Nevada-Clark County UCC by First Security Bank
         of Nevada as secured party against Sunbelt Integrated Trade Services,
         Inc. as debtor on August 2, 1999 as registration number 990802-01017.

14.      Lien in favour of First Security Bank of Nevada perfected by a
         registration made under Nevada UCC by First Security Bank of Nevada as
         secured party against Quality Mechanical Contractors, Inc. as debtor on
         July 30, 1999 as registration number 9911821.

15.      Lien in favour of First Security Bank of Nevada perfected by a
         registration made under Nevada-Clark County UCC by First Security Bank
         of Nevada as secured party against Quality Mechanical Contractors, Inc.
         as debtor on August 2, 1999 as registration number 990802-01018.

16.      Garageman's Lien registered in favour of Kal Tire A Corporate
         Partnership on January 21, 2000 as number 00012101804 with respect to a
         1996 Dodge in the amount of $908.00.

17.      Garageman's Lien registered in favour of Kal Tire A Corporate
         Partnership on February 28, 2000 as number 00022802243 with respect to
         a 1996 Ford in the amount of $1,074.89.

18.      Garageman's Lien registered in favour of Kal Tire A Corporate
         Partnership on March 13, 2000 as number 00031306228 with respect to a
         1997 Dodge in the amount of $1,818.66.

<PAGE>   160

                                   SCHEDULE 9

                       ASSIGNMENT AND ASSUMPTION AGREEMENT

         Assignment and assumption agreement dated as of o between [NAME OF
ASSIGNOR] the ("ASSIGNOR"), a Lender under the Credit Agreement (as hereinafter
defined) and [NAME OF ASSIGNEE] (the "ASSIGNEE").

         WHEREAS the Administrative Agent and such other Lenders as may from
time to time be parties to the Credit Agreement have agreed to make certain
credit facilities available to Bracknell Corporation, Nationwide Electric, Inc.
and The State Group Limited (the "BORROWERS") upon the terms and conditions
contained in a second amended and restated credit agreement dated as of July 21,
2000 among the Borrowers, Royal Bank of Canada, as Administrative Agent and the
financial institutions parties thereto as lenders (the "LENDERS") (such credit
agreement as it may at any time or from time to time be amended, supplemented,
restated or replaced, the "CREDIT AGREEMENT");

         AND WHEREAS the Assignor has agreed to assign and sell to the Assignee
all of its right, title and interest in and to [describe the portion of the
Lender's [Canadian] [U.S.] [Acquisition] [OPERATING] [TERM] [SWINGLINE]
COMMITMENTS AND ACCOMMODATIONS OUTSTANDING BEING ASSIGNED], subject to the
conditions set forth in Section 11.08(3) of the Credit Agreement, and all right,
title and interest of the Assignor in and to the Credit Documents to the extent
relating thereto (collectively, the "ASSIGNED CREDIT FACILITIES"), and the
Assignee has agreed to accept and purchase the Assigned Credit Facilities and
assume all liabilities and obligations of the Assignor in respect of the
Assigned Credit Facilities (collectively, such assignment, sale, purchase and
assumption is hereinafter referred to as the "ASSIGNMENT");

         AND WHEREAS all necessary consents, if any, to the Assignment have been
obtained;

         AND WHEREAS the Assignor and the Assignee are required to enter into an
agreement pursuant to Section 11.08(5) of the Credit Agreement, and the
Borrowers and the Administrative Agent have agreed to acknowledge the
Assignment;

         NOW THEREFORE, in consideration of the foregoing premises, the sum of
$10.00 in lawful money of Canada now paid by the Assignor and the Assignee to
each other and for other good and valuable consideration, the receipt and
sufficiency of which are acknowledged by each such party, the parties agree as
follows:

<PAGE>   161
                                     - 2 -

         SECTION 1.01. DEFINITIONS. Terms defined in the Credit Agreement which
appear in this agreement without definition shall have the meanings ascribed to
them in the Credit Agreement.

         SECTION 2.01. CONVEYANCE OF INTEREST IN CREDIT FACILITIES. The Assignor
assigns, sells, conveys and transfers to the Assignee all of its undivided
interest in and to the Assigned Credit Facilities as and from this date.

         SECTION 3.01. ASSUMPTION. The Assignee accepts and assumes the Assigned
Credit Facilities by payment (i) to the Administrative Agent of the applicable
processing fee in section 11.08(5) of the Credit Agreement, and (ii) to the
Assignor of the amount set forth on Schedule "A" under "Purchase Price" and the
Assignee assumes and agrees to be bound by all of the terms and conditions of
the Credit Agreement and the other Credit Documents as if it were an original
Lender and party to them with a [CANADIAN] [U.S.] [ACQUISITION] [OPERATING]
[TERM] [SWINGLINE] Commitment equal to (where the Assignee is already an
original Lender, the aggregate of the [CANADIAN] [U.S.] [ACQUISITION]
[OPERATING] [TERM] [SWINGLINE] Commitment originally incurred by the Assignee
and) the Commitments included in the Assigned Credit Facilities and acknowledges
and expressly assumes in the name, place and stead of the Assignor all
obligations and liabilities attaching to the Assigned Credit Facilities and
agrees (iii) to perform all of the terms, conditions and agreements on its part
to be performed as a Lender in respect thereof under the Credit Agreement and
the other Credit Documents, and (iv) not to seek recourse against the Assignor
for any breaches by any of the Borrowers of the Credit Documents.

         SECTION 4.01. REPRESENTATIONS AND WARRANTIES OF THE ASSIGNOR. The
Assignor represents and warrants to the Assignee that the outstanding principal
amount of the Assigned Credit Facilities as set forth in Schedule "A" remains
outstanding as Accommodations Outstanding under the Credit Facility;

         SECTION 4.02. REPRESENTATIONS AND WARRANTIES OF THE ASSIGNEE. (1) The
Assignee represents and warrants to each other party hereto that it has the
capacity and power to enter into this assignment and assumption agreement in
accordance with its terms and to perform its obligations, and all action
required to authorize the execution and delivery of this assignment and
assumption agreement, and the performance of such obligations, has been duly
taken.

         (2) Unless this Assignment is being made at a time when an Event of
Default has occurred and is continuing, the Assignee represents and warrants to
each other Party hereto that [IT IS NOT A NON-RESIDENT OF CANADA] or [IT IS A
FOREIGN LENDER].

<PAGE>   162
                                     - 3 -

         SECTION 5.01. RELEASE BY THE BORROWERS. The assignment and assumption
herein being effective, the Assignor acknowledges the applicability of Section
11.08(5) of the Credit Agreement to the Assignment.

         SECTION 6.01. ASSIGNEE'S ACKNOWLEDGMENTS. The Assignee acknowledges and
agrees that (i) it has received a copy of the Credit Agreement and the other
Credit Documents, (ii) it is bound by all of the terms, conditions and covenants
of the Credit Agreement, the other Credit Documents and entitled to the same
rights and benefits thereof and is subject to the same limitations under the
Credit Agreement, the other Credit Documents and the Letter Agreement as it
would have as if it were an original Lender and signatory to the Credit
Agreement with [CANADIAN] [U.S.] [ACQUISITION] [OPERATING] [TERM] [SWINGLINE]
Commitments equal to (where the Assignee is already an original Lender, the
aggregate of the [CANADIAN] [U.S.] [ACQUISITION] [OPERATING] [TERM] [SWINGLINE]
Commitment originally incurred by the Assignee and) the [CANADIAN] [U.S.]
[ACQUISITION] [OPERATING] [TERM] [SWINGLINE] Commitments included in the
Assigned Credit Facilities; and (iii) it has, independently and without reliance
upon the Assignor (other than those representations and warranties contained in
this agreement) and on the basis of such document and information as it deems
appropriate, made its own credit decision regarding this assignment and
assumption agreement. Except for documents referred to in (i) above which the
Assignee has already received, the Assignor shall not have any duty to provide
the Assignee with any credit or other information concerning the affairs,
financial condition or business of any of the Borrowers or other third party.

         SECTION 7.01. RECOGNITION AS LENDER. The parties acknowledge and agree
that the Assignee is, by virtue of compliance with the provisions of Section
11.08(5) of the Credit Agreement, as and from this date, a Lender under and as
defined in the Credit Agreement for the purposes of the Credit Agreement and for
all of the other Credit Documents and bound by the terms, conditions and
covenants, and entitled to the benefits thereof as if it were an original Lender
and signatory with [CANADIAN] [U.S.] [ACQUISITION] [OPERATING] [TERM]
[SWINGLINE] Commitments equal to (where the Assignee is already an original
Lender, the aggregate of the [CANADIAN] [U.S.] [ACQUISITION] [OPERATING] [TERM]
[SWINGLINE] Commitment originally incurred by the Assignee and) the [Canadian]
[U.S.] [Acquisition] [Operating] [Term] [Swingline] Commitments included in the
Assigned Credit Facilities, and the Borrowers shall be entitled as and from this
date to deal exclusively and directly with the Assignee in respect of all
matters relating to the Assigned Credit Facilities.

         SECTION 8.01. GOVERNING LAW. This Assignment and Assumption Agreement
shall be governed by and interpreted and enforced in accordance with the laws of
the Province of Ontario and the federal laws of Canada applicable therein.

<PAGE>   163
                                     - 4 -

         SECTION 9.01. ENUREMENT. This assignment and assumption agreement shall
enure to the benefit of and be binding upon the parties and their respective
successors and permitted assigns.

         SECTION 10.01. COUNTERPARTS. This assignment and assumption agreement
may be executed in counterparts (including by way of facsimile), each of which
shall be deemed an original and which, taken together, shall constitute one and
the same instrument.

         IN WITNESS WHEREOF the parties have caused this assignment and
assumption agreement to be executed by their respective authorized officers as
of the date first above written.

                                       [ASSIGNOR]

                                       Per:
                                           -----------------------------------
                                           Authorized Signing Officer

                                       Per:
                                           -----------------------------------
                                           Authorized Signing Officer

                                       [ASSIGNEE]

                                       Per:
                                           -----------------------------------
                                           Authorized Signing Officer

                                       Per:
                                           -----------------------------------
                                           Authorized Signing Officer

<PAGE>   164
                                     - 5 -

Acknowledged by the undersigned this ____ day of ______________, ______.

                                       ROYAL BANK OF CANADA,
                                       as Administrative Agent

                                       Per:
                                           -----------------------------------
                                           Authorized Signing Officer

                                       Per:
                                           -----------------------------------
                                           Authorized Signing Officer

                                       BRACKNELL CORPORATION

                                       Per:
                                           -----------------------------------
                                           Authorized Signing Officer

                                       Per:
                                           -----------------------------------
                                           Authorized Signing Officer

                                       NATIONWIDE ELECTRIC, INC.

                                       Per:
                                           -----------------------------------
                                           Authorized Signing Officer

                                       Per:
                                           -----------------------------------
                                           Authorized Signing Officer

                                       THE STATE GROUP LIMITED

                                       Per:
                                           -----------------------------------
                                           Authorized Signing Officer

                                       Per:
                                           -----------------------------------
                                           Authorized Signing Officer

<PAGE>   165

                                  SCHEDULE "A"

                                [TO BE COMPLETED]
<TABLE>
<CAPTION>
                                                                                 Purchase Price
                                                                                 --------------

<S>                                                                              <C>
List [CANADIAN] [U.S.] [ACQUISITION] [OPERATING]
[TERM] [SWINGLINE] Commitments                                                         U.S. $ -
</TABLE>

<PAGE>   166

                                   SCHEDULE 10

                FORM OF POWER OF ATTORNEY - BANKERS' ACCEPTANCES

                  WHEREAS [BRACKNELL CORPORATION] [THE STATE GROUP LIMITED] (the
"BORROWER") wish to facilitate the acceptance of Bankers' Acceptances pursuant
to the terms of a second amended and restated credit agreement dated as of July
21, 2000 among, inter alia, the Borrower, a syndicate of Lenders and Royal Bank
of Canada, as administrative agent (the "AGENT") (as amended, supplemented and
restated from time to time, the "CREDIT AGREEMENT"). Capitalized terms used in
this power of attorney without definition shall have the meanings specified in
the Credit Agreement.

         NOW THEREFORE, the Borrower hereby appoints [o] (the "BANK"), acting by
its duly authorized signatory (the "ATTORNEY") for the time being at the Bank's
main branch in Toronto, Ontario (the "BRANCH ACCOUNT"), its attorney:

         (a)      to sign for and on behalf and in the name of the Borrower, as
                  drawer, drafts in the Bank's standard form which are
                  "depository bills" under and as defined in the Depository
                  Bills and Notes Act (Canada) (the "DBNA") ("DRAFTS") drawn on
                  the Bank payable to a "clearing house" under the DBNA or its
                  nominee for deposit by the Bank with the "clearing house"
                  after acceptance thereof by the Bank; and

         (b)      to fill in the amount, date and maturity date of such Drafts,

provided that such acts in each case are to be undertaken by the Bank in
accordance with instructions given to the Bank by the Borrower provided in this
power of attorney.

         Instructions to the Bank relating to the execution, completion,
discount and/or deposit by the Bank on behalf of the Borrower of Drafts which
the Borrower wishes to submit to the Bank for acceptance by the Bank shall be
communicated by the Agent and/or the Borrower to the Bank in writing to the
attorney at the Bank's Branch of Account following delivery by the Borrower of a
Drawing Notice pursuant to Section 4.03 of the Credit Agreement and shall
specify the following information:

1.       reference to this power of attorney;

2.       a Canadian Dollar amount, which shall be the aggregate face amount of
         the Drafts to be accepted by the Bank in respect of a particular
         Borrowing;

3.       a specified period of time, as provided in the Credit Agreement, which
         shall be the number of days after the date of such Drafts that such
         Drafts are to be payable, and the dates of issue and maturity of such
         Drafts; and

<PAGE>   167
                                     - 2 -

4.       discount/payment instructions specifying the account number of the
         Borrower and the financial institution at which the proceeds from the
         sale of such Drafts are to be credited.

         The communication in writing by the Agent to the Bank of the
instructions referred to above shall constitute the authorization and
instruction of the Borrower to the Bank to complete and execute Drafts in
accordance with such information as set out above and the request of the
Borrower to the Bank to accept such Drafts and deposit the same with the
"clearing house" against payment as set out in the instructions. The Borrower
acknowledges that the Bank shall not be obligated to accept any such Drafts
except in accordance with the provisions of the Credit Agreement.

         The Bank shall be and it is hereby authorized to act on behalf of the
Borrower upon and in compliance with instructions communicated to the Bank as
provided herein if the Bank reasonably believes them to be genuine.

         The Borrower agrees to indemnify the Bank and its directors, officers,
employees, affiliates and agents and to hold it and them harmless from and
against any loss, liability, expense or claim of any kind or nature whatsoever
incurred by any of them as a result of any action or inaction in any way
relating to or arising out of this power of attorney or the acts contemplated
hereby including the deposit of any draft with the "clearing house"; provided
that this indemnity shall not apply to any such loss, liability, expense or
claim which results from the gross negligence or wilful misconduct of the Bank
or any of its directors, officers, employees, affiliates or agents.

         This power of attorney may be revoked by the Borrower at any time upon
not less than five (5) Business Days' written notice served upon the Bank at the
Branch of Account, provided that (i) it may be replaced with another power of
attorney forthwith in accordance with the requirements of Section 4.04 of the
Credit Agreement, and (ii) no such revocation shall reduce, limit or otherwise
affect the obligations of the Borrower in respect of any Draft executed,
completed, endorsed, discounted and/or delivered in accordance herewith prior to
the time at which such revocation becomes effective.

         This power of attorney may be terminated by the Bank at any time upon
not less than five (5) Business Days' written notice to the Borrower in
accordance with Section 11.04 of the Credit Agreement.

         Any revocation or termination of this power of attorney shall not
affect the rights of the Bank and the obligations of the Borrower with respect
to the indemnities of the Borrower above stated with respect to all matters
arising prior in time to any such revocation or termination.

<PAGE>   168
                                     - 3 -

         This power of attorney is in addition to and not in substitution for
any agreement to which the Bank and the Borrower are parties.

         This power of attorney shall be governed in all respects by the laws of
the Province of Ontario and the laws of Canada applicable therein and each of
the Borrower and the Bank hereby irrevocably attorns to the non-exclusive
jurisdiction of the courts of such jurisdiction in respect of all matters
arising out of this power of attorney.

         In the event of a conflict between the provisions of this Power of
Attorney and the Credit Agreement, the Credit Agreement shall prevail.

         DATED at Toronto, this ________ day of __________________, 2000.

                                      [BORROWER]

                                       Per:
                                           -----------------------------------
                                             Name:
                                             Title:

                                       Per:
                                           -----------------------------------
                                             Name:
                                             Title:

<PAGE>   169

                    SUMMARY OF SIGNIFICANT PENDING LITIGATION

<TABLE>
<CAPTION>

   PARTIES        CLAIM                     COURT               AMOUNT           DATE FILED         COMMENTS
   -------        -----                     -----               ------           ----------         --------
<S>               <C>                       <C>                 <C>              <C>                <C>

SNC-Lavalin v.    Breach of Contract        Ontario Court       $370,005         July 26, 1999      We are seeking particulars of
State Group                                 (General Division)                                      this claim.  SNC-Lavalin have
Limited                                                                                             agreed not to proceed until we
                                                                                                    have had opportunity to discuss
                                                                                                    the claim directly.

Hanson v.         Auto accident allegedly   New Brunswick       General and      November 27, 1998  This claim has been referred to
Shephard          caused by an employee     Court of Queen's    special damages                     our insurer to defend.
et al.            of Bracknell              Bench

Sun
International     Fire damage to Atlantis   No claim filed yet   No claim filed  No claim filed     This matter has been referred to
Development       Hotel & Casino Project                         yet             yet                our insurer to defend. [INSURER
Limited           in the Bahamas                                                                    INDICATES MATTER HAS BEEN
and State Group                                                                                     CLOSED]
Limited

Cahill State      Compensation arising      Supreme Court of     $1,896,151      November 17, 1998  Just received the statement of
Atlantic          from a Subcontract        Nova Scotia                                             defence.
Ltd., The State   Agreement
Group Ltd.
v. Walter & SCI
Construction
Ltd.

Gerdau Courtice   Damage arising from       Ontario Superior      $255,000        November 2, 1999  Statement of claim filed.
Steel Inc.        explosion on job site     Court of Justice                                        Matter has been referred to

</TABLE>

<PAGE>   170

- 2 -

<TABLE>
<CAPTION>
   PARTIES        CLAIM                     COURT               AMOUNT           DATE FILED         COMMENTS
   -------        -----                     -----               ------           ----------         --------
<S>               <C>                       <C>                 <C>              <C>                <C>
v. Evans                                                                                            insurer to defend.
Industrial
Installations
Limited
and
The State
Group
Limited

The State Group   Compensation arising      Queen's Bench New    CDN $2,343,173  May, 2000           Statement of Claim has been
Limited v.        from a Construction       Brunswick                                                filed.
Irving Oil        Agreement

NKK Steel         Compensation arising      U.S. Federal Court   Amount not      May, 2000           TSGIL has filed a defense and
Engineering Inc.  from termination of a                          specified                           counterclaim for wrongful
v. The State      Construction Agreement                                                             termination of the Construction
Group                                                                                                Agreement.  Mediation has
International                                                                                        commenced, and the parties are
Limited                                                                                              proceeding with discovery.

The State Group   Compensation arising      Wayne County Court,  Amount not      May, 2000           We are awaiting a defense from
International     from wrongful             Michigan             specified                           NKKSE. Mediation has commenced,
Limited v.        termination of a                                                                   and the parties are proceeding
NKK Steel         Construction Agreement                                                             with discovery.
Engineering Inc.
and others

BFC               Compensation arising      Dispute is to be     CDN $2,000,000  December, 1999      BFC is by agreement proceeding
Construction      from termination of a     resolved through                                         through arbitration with ORC on
Corporation, The  Construction Agreement    mediation and binding                                    its own behalf and on behalf of
State                                       binding arbitrarion                                      its subcontractors.
</TABLE>

<PAGE>   171

- 3 -

<TABLE>
<CAPTION>
   PARTIES        CLAIM                     COURT               AMOUNT           DATE FILED         COMMENTS
   -------        -----                     -----               ------           ----------         --------
<S>               <C>                       <C>                 <C>              <C>                <C>
Group Limited,
The Ontario
Realty
Corporation and
others

State of          Compensation arising      No suit filed yet.   Not Specified.   May, 2000          TSGIL is rejecting being
Arkansas          from alleged                                                                       included in the potential claim
(Department of    contribution of to a                                                               as having no conection to th
Environmental     contaminated site in                                                               site in question.
Quality) and      Arkansas
The State Group
International
Limited and
others

Claim by Rouge    Compensation for          Wayne County,        Not Specified.  January, 2000.     Matter has been referred to our
Steel             alleged injuries          Michigan                                                insurer and the subcontractor to
Company for       suffered on a job site                                                            defend.
Indemnity         by an employee of a
relating to the   subcontractor of
following
action

Williams v.       TSGIL
Rouge Steel       Bayview Electric
Company           Company.

Quality           Compensation arising      Private Arbitration  US$1,800,000    March, 1998        General Contractor of the
Mechanical        from a Construction                                                               project is pursuing claim in
Contractors, Inc. Compensation arising      Private Arbitration  US$1,800,000    March, 1998        Federal Court. General
v R.M.A. Inc.     from a Construction                                                               Contractor of the project is
                  Agreement                                                                         pursuing claim in Federal Court.
</TABLE>

<PAGE>   172

- 4 -

<TABLE>
<CAPTION>
   PARTIES        CLAIM                     COURT               AMOUNT           DATE FILED         COMMENTS
   -------        -----                     -----               ------           ----------         --------

<S>               <C>                       <C>                 <C>              <C>                <C>
Quality           Compensation arising      Not filed            up to $3,500,000 August 6, 1999    General Contractor is pursuing
Mechanical        from Construction                                                                 payment.
Contractors,      Agreement
Inc. v.
Venetian Casino
Resort
LLC, et al.

Laguna Verde      Third party claim         Clark County,        Not Specified    November, 1999    Insurance carriers are defending
Townhomes v.      arising from alleged      Nevada                                                  the action
Laguna Verde      construction defects
Associates v.
Quality Air
Conditioning
et al

Mar-a-Lago        Third party claim         Not filed            Not Specified    December 7, 1999  Wheeler Development Corporation
Homeowners        arising from alleged                                                              has sent notice of third party
Association v.    construction defects                                                              complaint for indemnification
Wheeler
Development
Corporation
and Wheeler
Development
LLC

Quail Estates     Third party claim         Clark County,        Not Specified    March, 2000       Insurance carriers are defending
West              arising from alleged      Nevada                                                  the action
Homeowners v.     construction defects
Clark
Ribeiro v.
Quality
Mechanical
</TABLE>

<PAGE>   173

- 5 -
<TABLE>
<CAPTION>
   PARTIES        CLAIM                     COURT               AMOUNT           DATE FILED         COMMENTS
   -------        -----                     -----               ------           ----------         --------

<S>               <C>                       <C>                 <C>              <C>                <C>
Contractors,
Inc. (as third
parties)

David Duritsa v.
Beazer                                                                            April, 21, 2000    This matter has been referred
Homes                                                                                                 to our insurer to defend.
Holdings Corp.

Safway Steel      Third party claim                                               July 15, 1999
Products v.
Lehrer McGovern
Bons Inc.

Joni Taylor v.                                                   Not Specified    August 3, 1999     This matter has been referred
Adrian Young                                                                                          to our insurer to defend.

Western                                                          Not Specified    August 9, 1999
Casework Corp.
v. Douglas
Services Co.

Desert Plumbing                                                  Not Specified    August 6, 1999
and Heating Co.
Inv. v. SNF LLC

Steel Engineers                                                  Not Specified    September 4, 1997
Inc. v.
Meeks
Contracting Inc.

Quality                                                          Not Specified    August 27, 1998
Mechanical
</TABLE>

<PAGE>   174

- 6 -

<TABLE>
<CAPTION>
   PARTIES        CLAIM                     COURT               AMOUNT           DATE FILED         COMMENTS
   -------        -----                     -----               ------           ----------         --------

<S>               <C>                       <C>                 <C>              <C>                <C>
Contractors, Inc.
v.
Richardson
Construction
Inc.

Quality                                                          Not Specified    August 18, 1998
Mechanical
Contractors, Inc.
v. Display and
Nevada LLC

Derrick Robinson  Third Party Claim                              Not Specified    September 22, 1998
v. Theodore E.
Dusenbery

Insurance Co of                                                  Not Specified    December 11, 1997
the West v.
Quality Mechanical                                                                July 1, 1997
Contractors Inc.
(2 claims)

J.A. Tiberti                                                     Not Specified    December 20, 1996
Construction Co.
Inc. v. Poser
Electric
Inc.

Salphy M. Hooda                                                  Not Specified    August 6, 1999    This matter has been referred
v. Robert Spilsbury                                                                                 to our insurance company to
                                                                                                    defend.
</TABLE>

<PAGE>   175

- 7 -
<TABLE>
<CAPTION>
   PARTIES        CLAIM                     COURT               AMOUNT           DATE FILED         COMMENTS
   -------        -----                     -----               ------           ----------         --------

<S>               <C>                       <C>                 <C>              <C>                <C>
MTB Association                                                  Not Specified    April 3, 1996
v. Quality
Mechanical
Contractors, Inc.
</TABLE>

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00016-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00016-of-00352.parquet"}]]