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                                                                    EXHIBIT 10.5

THESE SECURITIES AND THE SECURITIES ISSUABLE UPON EXERCISE OF THESE SECURITIES
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
"ACT"), AND THEY MAY NOT BE OFFERED, SOLD, PLEDGED, HYPOTHECATED, ASSIGNED OR
TRANSFERRED EXCEPT (i) PURSUANT TO A REGISTRATION STATEMENT UNDER THE ACT WHICH
HAS BECOME EFFECTIVE AND IS CURRENT WITH RESPECT TO THESE SECURITIES, OR (ii)
PURSUANT TO A SPECIFIC EXEMPTION FROM REGISTRATION UNDER THE ACT BUT ONLY UPON A
HOLDER HEREOF FIRST HAVING OBTAINED THE WRITTEN OPINION OF COUNSEL TO THE
COMPANY, OR OTHER COUNSEL REASONABLY ACCEPTABLE TO THE COMPANY. THAT THE
PROPOSED DISPOSITION IS CONSISTENT WITH ALL APPLICABLE PROVISIONS OF THE ACT AS
WELL AS ANY APPLICABLE "BLUE SKY" OR SIMILAR STATE SECURITIES LAW.

                          BOSTON LIFE SCIENCES, INC.

                     Warrant for the Purchase of Shares of
                     --------------------------------------
                                 Common Stock
                                 ------------

NO.  BLSI  -  [INSERT NUMBER]                            [INSERT NUMBER] SHARES

FOR VALUE RECEIVED, BOSTON LIFE SCIENCES, INC., A Delaware corporation (the
"COMPANY"), hereby certifies that Pictet Global Sector Fund-Biotech or its
permitted assigns, is entitled to purchase from the Company, at any time or from
time to time commencing on June 1, 2000 (the "Initial Exercise Date") and prior
to 5:00 P. M., New York City time, on May 31, 2005 (the "Termination Date"),
[INSERT NUMBER] fully paid and non-assessable shares of the Common Stock, $.01
par value per share, of the Company for an aggregate purchase price of [insert
price] computed on the basis of [insert price] per share. If the weighted
average sales price per share of common stock of the Company (as reported by
Bloomberg Financial Services) for the 20 trading days ending on June 1, 2001
(the "Reset Price") is less than [insert price], then the exercise price of the
warrant will be adjusted to the Reset Price. (Hereinafter, (i) said Common
Stock, together with any other equity securities which may be issued by the
Company with respect thereto or in substitution therefor, is referred to as the
"COMMON STOCK", (ii) the shares of the Common Stock purchasable hereunder or
under any other Warrant (as hereinafter defined) are referred to as the "WARRANT
SHARES", (iii) the aggregate purchase price payable for the Warrant Shares
hereunder is referred to as the "AGGREGATE WARRANT PRICE", (iv) the price
payable for each of the Warrant Shares hereunder is referred to as the "PER
SHARE WARRANT PRICE", (v) this Warrant, all similar Warrants issued on the date
hereof and all warrants hereafter issued in exchange or substitution for this
Warrant or such similar Warrants are referred to as the "WARRANTS" and (vi) the
holder of this Warrant is referred to as the "HOLDER" and the holder of this
Warrant and all other Warrants or Warrant Shares issued upon the exercise of any
Warrant are referred to as the "HOLDERS"). The Per Share Warrant Price and the
number of Warrant Shares purchasable on exercise of this Warrant shall be
subject to adjustment as hereinafter provided.

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     1.   EXERCISE OF WARRANT
          -------------------

          (a) This Warrant may be exercised, in whole at any time or in part
from time to time, commencing on the Initial Exercise Date and prior to 5:00
P.M. New York City time, on the Termination Date by the holder by the surrender
of this Warrant (with the subscription form at the end hereof duly executed) at
the address set forth in Subsection 9(a) hereof, together with proper payment of
the Aggregate Warrant Price, or the proportionate part thereof if this Warrant
is exercised in part, with payment for Warrant Shares made by certified or
official bank check payable to the order of the Company; or

          (b) If this Warrant is exercised in part, this Warrant must be
exercised for a number of whole shares of the Common Stock and the Holder is
entitled to receive a new Warrant covering the Warrant Shares which have not
been exercised and setting forth the proportionate part of the Aggregate Warrant
Price applicable to such Warrant Shares. Upon surrender of this Warrant, the
Company will (i) within a reasonable time but not longer than five (5) business
days issue a certificate or certificates in the name of the Holder for the
largest number of whole shares of the Common Stock to which the Holder shall be
entitled and, if this Warrant is exercised in whole, in lieu of any fractional
share of the Common Stock to which the Holder shall be entitled, pay to the
Holder cash in an amount equal to the fair value of such fractional share
(determined in such reasonable manner as the Board of Directors of the Company
shall determine), and (ii) deliver the other securities and properties
receivable upon the exercise of this Warrant, if any, or the proportionate part
thereof if this Warrant is exercised in part, pursuant to the provisions of this
Warrant.

     2.   RESERVATION OF WARRANT SHARES; LISTING.  The Company agrees that,
          --------------------------------------
prior to the expiration of this Warrant, the Company will at all times (a) have
authorized and in reserve, and will keep available, solely for issuance or
delivery upon the exercise of this Warrant, the shares of the Common Stock and
other securities and properties as from time to time shall be receivable upon
the exercise of this Warrant, free and clear of all restrictions on sale or
transfer, except for the restrictions on sale or transfer set forth in the
Securities Act of 1933, as amended (the "ACT"), and restrictions created by or
on behalf of the Holder, and free and clear of all preemptive rights and rights
of first refusal; and (b) if the Company prepares and files a registration
statement covering the shares of Common Stock issued or issuable upon exercise
of this Warrant with the Securities and Exchange Commission (the "SEC") which
registration statement is declared effective by the SEC under the Act and the
Company lists its Common Stock on any national securities exchange, it will use
its best efforts to cause the shares of Common Stock subject to this Warrant to
be listed on such exchange.

     3.   PROTECTION AGAINST DILUTION.
          ---------------------------

          (a) If, at any time or from time to time after the date of the
Warrant, the Company shall issue or distribute to all of the holders of shares
of Common Stock evidence of its indebtedness, any other securities of the
Company or any cash, property or other assets (excluding a subdivision,
combination or reclassification, or dividend or distribution payable in shares
of Common Stock, referred to in Subsection 3(b), and also excluding cash
dividends or cash distributions paid out of net profits legally available
therefor in the full amount thereof, together with the value of other dividends
and distributions made substantially concurrently therewith or pursuant to a
plan which includes payment thereof, which is equivalent to not more than 5% of
the Company's net worth) (any such non-excluded event being herein called a
"SPECIAL DIVIDEND"), the Per Share Warrant Price shall be adjusted by
multiplying the Per Share Warrant Price then in effect by a fraction, the
numerator of which shall be the then current Market Price (closing price as
reported by Nasdaq) of the Common Stock less the fair market value (as
determined in good faith by the Company's Board of Directors) of the evidence of
indebtedness, cash, securities or property, or other assets

                                       2
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issued or distributed in such Special Dividend applicable to one share of Common
Stock and the denominator of which shall be the then current Market Price of the
Common Stock. An adjustment made pursuant to this Subsection 3(a) shall become
effective immediately after the record date of any such Special Dividend.

          (b) In case the Company shall hereafter (i) pay a dividend or make a
distribution on its capital stock in shares of Common Stock, (ii) subdivide its
outstanding shares of Common Stock into a great number of shares, (iii) combine
its outstanding shares of Common Stock into a smaller number of shares or (iv)
issue by reclassification of its Common Stock any shares of  capital stock of
the Company, the Per Share Warrant Price shall be adjusted to be equal to a
fraction, the numerator of which shall be the Aggregate Warrant Price and the
denominator of which shall be the number of shares of Common Stock or other
capital stock of the Company which he would have owned immediately following
such action had such Warrant been exercised immediately prior thereto.  An
adjustment made pursuant to this Subsection 3(b) shall become effective
immediately after the record date in the case of a dividend or distribution and
shall become effective immediately after the effective date in the case of a
subdivision, combination or reclassification.

          (c) No adjustment in the Per Share Warrant Price shall be required in
the case of the issuance by the Company of (a) Common Stock pursuant to the
exercise of any Warrant, (b) options or warrants to purchase Common Stock
(including the exercise thereof) issued or sold to employees, officers or
directors of or consultants and advisers to the Company or any subsidiary
thereof, and (c) shares of Common Stock issued or sold pursuant to stock
purchase or stock option plans or other similar arrangements that are approved
by the Company's Board of Directors.

          (d) In case of any capital reorganization or reclassification, or any
consolidation or merger to which the Company is a party other than a merger or
consolidation in which the Company is the continuing corporation, or in case of
any sale or conveyance to another entity of the property of the Company as an
entirety or substantially as an entirety, or in the case of any statutory
exchange of securities with another corporation (including any exchange effected
in connection with a merger of a third corporation into the Company), the Holder
of this Warrant shall have the right thereafter to receive on the exercise of
this Warrant the kind and amount of securities, cash or other property which the
Holder would have owned or have been entitled to receive immediately after such
reorganization, reclassification, consolidation, merger, statutory

                                       3
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exchange, sale or conveyance had this Warrant been exercised immediately prior
to the effective date of such reorganization, reclassification, consolidation,
merger, statutory exchange, sale or conveyance and in any such case, if
necessary, appropriate adjustment shall be made in the application of the
provisions set forth in this Section 3 with respect to the rights and interests
thereafter of the Holder of this Warrant to the end that the provisions set
forth in this Section 3 shall thereafter correspondingly be made applicable, as
nearly as may reasonably be, in relation to any shares or other securities or
property thereafter deliverable on the exercise of this Warrant. The above
provisions of this Subsection 3(d) shall similarly apply to successive
reorganizations, reclassifications, consolidations, mergers, statutory
exchanges, sales or conveyances. The issuer of any shares of stock or other
securities or property thereafter deliverable on the exercise of this Warrant
shall be responsible for all of the agreements and obligations of the Company
hereunder. Notice of any such reorganization, reclassification, consolidation,
merger, statutory exchange, sale or conveyance and of said provisions so
proposed to be made, shall be mailed to the Holders of the Warrants not less
than 30 days prior to such event. A sale of all or substantially all of the
assets of the Company for a consideration consisting primarily of securities
shall be deemed a consolidation or merger for the foregoing purposes.

          (e) In case any event shall occur as to which the other provisions of
this Section 3 are not strictly applicable but as to which the failure to make
any adjustment would not fairly protect the purchase rights represented by this
Warrant in accordance with the essential intent and principles hereof then, in
each such case, the Holders of Warrants representing the right to purchase a
majority of the Warrant Shares subject to all outstanding Warrants may appoint a
firm of independent public accountants of recognized national standing
reasonably acceptable to the Company, which shall give their opinion as to the
adjustment, if any, on a basis consistent with the essential intent and
principles established herein, necessary to preserve the purchase rights
represented by the Warrants.  Upon receipt of such opinion, the Company will
promptly mail a copy thereof to the Holder of this Warrant and shall make the
adjustments described therein.  The fees and expenses of such independent public
accountants shall be borne by the Company.

          (f) No adjustment in the Per Share Warranty Price shall be required
unless such adjustment would require an increase or decrease of at least $0.05
per share of Common Stock; provided, however, that any adjustments which by
                           --------  -------
reason of this Subsection 3(f) are not required to be made shall be carried
forward and taken into account in any subsequent adjustment; provided, further,
                                                             --------  -------
however, that adjustments shall be required and made in accordance with the
provisions of this Section 3 (other than this Subsection 3(f)) not later than
such times as may be required in order to preserve the tax-free nature of a
distribution to the Holder of this Warrant or Common Stock issuable upon the
exercise hereof.  All calculations under this section 3 shall be made to the
nearest cent or to the nearest 1/100th of share, as the case may be.  Anything
in this Section 3 to the contrary notwithstanding, the Company shall be entitled
to make such reductions in the Per Share Warrant Price, in addition to those
required by this Section 3, as it in its discretion shall deem to be advisable
in order that any stock dividend, subdivision of shares or distribution of
rights to purchase stock or securities convertible or exchangeable for stock
hereafter made by the Company to its stockholders shall not be taxable.

                                       4
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          (g) If the Board of Directors of the Company shall declare any
dividend or other distribution with respect to the Common Stock other than a
cash distribution out of earned surplus, the Company shall mail notice thereof
to the Holders of the Warrants not less than 15 days prior to the record date
fixed for determining stockholders entitled to participate in such dividend or
other distribution.

          (h) If, as a result of an adjustment made pursuant to this Section 3,
the Holder of any Warrant thereafter surrendered for exercise shall become
entitled to receive shares of two or more classes of capital stock or shares of
Common Stock and other capital stock of the Company, the Board of Directors
(whose reasonable determination shall be conclusive and shall be described in a
written notice to the Holder of any Warrant promptly after such adjustment)
shall determine the allocation of the adjusted Per Share Warrant Price between
or among shares or such classes of capital stock or shares of Common Stock and
other capital stock.

     4.   FULLY PAID STOCK; TAXES.  The Company agrees that the shares of the
          -----------------------
Common Stock represented by each and every certificate of Warrant Shares
delivered on the exercise of this Warrant be validly issued and outstanding,
fully paid and nonassessable, and not subject to preemptive rights or rights of
first refusal, and the Company will take all such actions as may be necessary to
assure that the par value or stated value, if any, per share of the Common Stock
is at all times equal to or less than the then Per Share Warrant Price.  The
Company further covenants and agrees that it will pay, when due and payable, any
and all Federal and State stamp, original issue or similar taxes which may be
payable in respect of the issue of any Warrant Share or any certificate thereof.

     5.   REGISTRATION UNDER SECURITIES ACT OF 1933.
          -----------------------------------------

          The initial holder of this Warrant is entitled to  the benefit of
certain regulation rights in respect of the Warrant Shares as provided in the
Registration Rights Agreement dated as of June 1, 2000.

                                       5
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     6.   LIMITED TRANSFERABILITY.  This Warrant may not be sold, transferred,
          ------------------------
assigned or hypothecated by the Holder (a) except in compliance with the
provisions of the Act and the applicable state securities "blue sky" laws, and
(b) until the first anniversary hereof except (i) to any successor firm or
corporation of Pictet Global Sector Fund - Biotech, (ii) to any of the officers
or employees of Pictet Global Sector Fund - Biotech or any such successor firm
or (iii) in the case of an individual, pursuant to such individual's last will
and testament or the laws of descent and distribution, and is so transferable
only upon the books of the Company which it shall cause to me maintained for
such purpose. The Company may treat the registered Holder of this Warrant as he
or it appears on the Company's books at any time as the Holder for all purposes.
The Company shall permit any Holder of a Warrant or his duly authorized
attorney, upon written request during ordinary business hours, to inspect and
copy or make extracts from its books showing the registered holders of Warrants.
All warrants issued upon the transfer or assignment of this Warrant will be
dated the same date as this Warrant, and all rights of the holder thereof shall
be identical to those of the Holder.

     7.   LOSS, ETC., OF WARRANT.  Upon receipt of evidence satisfactory to the
          ----------------------
Company of the loss, theft, destruction or mutilation of this Warrant, and of
indemnity reasonably satisfactory to the Company, if lost, stolen or destroyed,
and upon surrender and cancellation of this Warrant, if mutilated, the Company
shall execute and deliver to the Holder a new Warrant of like date, tenor and
denomination.

     8.   WARRANT HOLDER NOT SHAREHOLDER.  Except as otherwise provided herein,
          ------------------------------
this Warrant does not confer upon the Holder any right to vote or to consent to
or receive notice as a stockholder of the Company, as such, in respect of any
matters whatsoever, or any other rights or liabilities as a stockholder, prior
to the exercise hereof.

                                       6
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     9.   COMMUNICATION.  No notice or other communication under this Warrant
          -------------
shall be effective unless, but any notice or other communication shall be
effective and shall be deemed to have been given if, the same is in writing and
is mailed by first-class mail, postage prepaid, addressed to:

          (a)  The Company at 137 Newbury Street, 8th Floor, Boston,
Massachusetts 02116 or other address as the Company has designated in writing to
the Holder, or

          (b)  the Holder at Pictet Global Fund-Biotech, c/o Pictet & Cie, Bd
Georges-Favon 29, CH-1204 Geneva, Switzerland Attn: Dr. Vincent Ossipow or other
such address as the Holder has designated in writing to the Company, with a copy
to Mr. Yves Martignier, Pictet & Cie, Bd Georges-Favon 29, CH-1204 Geneva,
Switzerland.

     10.  HEADINGS. The headings of this Warrant have been inserted as a matter
          --------
of convenience and shall not affect the construction hereof.

     11.  APPLICABLE LAW.  This Warrant shall be governed by and construed in
          --------------
accordance with the law of the State of Delaware without giving effect to the
principles of conflicts of law thereof.

IN WITNESS WHEREOF, the Company has caused this Warrant to be signed by its
President and attested to by its Secretary on the dates indicated below.

                                                     BOSTON LIFE SCIENCES, INC.

                                                     By: /s/ S. David Hillson
                                                        -----------------------
                                                        Chief Executive Officer

                                                                6/1/00
                                                        -----------------------
                                                                 Date

ATTEST:

 /s/ Joseph Hernon
-------------------------
     Secretary

        6/1/00
-------------------------
         Date

                                       7
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                                 SUBSCRIPTION
                                 ------------

          The undersigned, _______________________, pursuant to the provisions
of the foregoing Warrant, hereby agrees to Subscribe for and purchase
________________ shares of the Common Stock, par value $.01 per share, of Boston
Life Sciences, Inc. covered by said Warrant, and makes payment therefor in full
at the price per share provided by said Warrant.

Dated:__________________                Signature:______________________________

                                        Address:________________________________

                                                ________________________________

                                  ASSIGNMENT
                                  ----------

          FOR VALUE RECEIVED______________ hereby sells, assigns and transfers
unto ______________________the foregoing Warrant and all right evidenced
thereby, and does irrevocably constitute and appoint ________________________,
attorney, to transfer said Warrant on the books of Boston Life Sciences, Inc.

Dated:__________________                Signature:______________________________

                                        Address:________________________________

                                                ________________________________

                              PARTIAL ASSIGNMENT
                              ------------------

          FOR VALUE RECEIVED __________________ hereby assigns and transfers
unto ________________________ the right to purchase ___________ shares of the
Common Stock, par value $.01 per share, of Boston Life Sciences, Inc. covered by
the foregoing Warrant, and a proportionate part of said Warrant and the rights
evidenced thereby, and does irrevocably constitute  and appoint
____________________________, attorney, to transfer that part of said Warrant on
the books of Boston Life Sciences, Inc.

Dated:__________________                Signature:______________________________

                                        Address:________________________________

                                                ________________________________

                                       8AGREEMENT AND PLAN OF MERGER

     THIS AGREEMENT AND PLAN OF MERGER,  made this 26th day of May, 2000, by and
between  TERRY  KLEIN  ("T.  Klein")(hereinafter  referred  to as "T.  Klein" or
"Securityholder"),  U.S.  COMMUNICATIONS,  INC., a New Mexico  corporation  (the
"Company"),  ARGUSS HOLDINGS,  INC., a Delaware corporation (the "Parent"),  and
ARGUSS  COMMUNICATIONS  GROUP, INC. ("ACG"),  a Delaware  corporation and a 100%
direct subsidiary of Parent.

                             INTRODUCTORY STATEMENT
                             ----------------------

     A.  Securityholder owns one thousand (1,000) shares of capital stock of the
Company, which shares constitute all of the issued and outstanding capital stock
("Stock")  of the  Company,  a New Mexico  corporation  doing  business  as U.S.
Communications.

     B. The Company is engaged in the construction, reconstruction, maintenance,
repair and expansion of CATV,  SMATV  systems and other  related  systems in the
telecommunications industry.

     C.  Parent has agreed  with the  Securityholder  for Parent to acquire  the
Company by means of a merger of the  Company  with and into ACG, a wholly  owned
subsidiary  of Parent  upon the terms and  subject to the  conditions  set forth
herein.

     D. In furtherance of such  acquisition,  the Boards of Directors of Parent,
ACG and the Company  have each  approved the plan of merger to merge the Company
with and into ACG (the "Merger") in accordance with the applicable provisions of
the Delaware General  Corporation Law (the "DGCL"),  and the New Mexico Business
Corporation Act ("NMBCA"),  and upon the terms and subject to the conditions set
forth herein.

     E. Pursuant to the Merger,  the record holders of each outstanding share of
the Company's common stock,  one dollar ($1.00) par value,  shall be entitled to
receive  the Merger  Consideration  (as  defined  in  Section  2.1) so that upon
receipt of the Merger Consideration,  such share of the Stock shall be canceled,
all upon the terms and subject to the conditions set forth herein.

     F. The parties hereto intend that this transaction to qualify as a tax free
reorganization under Section 368(a)(1)(A) and Section 368(a)(2)(D) of the United

<PAGE>

States Federal  Internal  Revenue Code of 1986, as amended  ("Code").  Except as
otherwise required by a determination  within the meaning of Section 1313 of the
Code, the parties hereto intend to treat the Merger as a  reorganization  within
the meaning of Section 368 (a)(1) of the Code for tax  purposes  (including  for
income  tax  reporting  purposes)  and no party  shall  take or fail to take any
action with the  knowledge  that such action or failure to take such action will
prevent  or impede  the  Merger  from  qualifying  as a tax free  reorganization
thereunder.

     NOW,  THEREFORE,  WITNESSETH,  for and in consideration of the promises and
the  mutual  representations,   warranties,   covenants  and  agreements  herein
contained and other good and valuable consideration,  receipt of which is hereby
acknowledged, the parties do agree as follows:

                                   DEFINITIONS
                                   -----------

     The  following  terms when used in this  AGREEMENT AND PLAN OF MERGER shall
have the following meanings:

         "1999 VALUE OF THE COMPANY"  shall mean the value of the Company  equal
to the product of Four and One-Half  (4-1/2)  times the  December,1999  12 Month
Adjusted Cash Flow.

         "ACCOUNTS  RECEIVABLE"  means accounts  receivable,  notes due from all
sources of the Company, and credits for returned or damaged merchandise.

         "ACG" has the meaning set forth in the preface above.

         "ACT" shall mean the  Securities  Act of 1933, as the same has been and
shall be amended from time to time.

         "ADVERSE CONSEQUENCES" means all material actions, suits,  proceedings,
hearings,  investigations,  charges, complaints,  claims, demands,  injunctions,
judgments,  orders, decrees,  rulings,  damages, dues, penalties,  fines, costs,
liabilities,  obligations,  taxes, liens, losses,  expenses, and fees, including
court  costs  and  attorneys'  fees and  expenses,  net of all tax  savings  and
insurance proceeds actually received by an Indemnitee with respect to any of the
foregoing.

         "AGREEMENT" means this AGREEMENT AND PLAN OF MERGER.

<PAGE>

         "ARGUSS"  shall mean the  Parent,  Arguss  Holdings,  Inc.,  a Delaware
corporation with its principal offices located at One Church Street,  Suite 302,
Rockville, Maryland 20850, and its successors and assigns.

         "ARGUSS STOCK" shall mean the authorized capital stock of Arguss.

         "ASSETS" means all property,  rights,  things of value and other assets
of the  Company  described,  referred  to, or  listed,  in  Section  4.9 of this
Agreement.

         "CERTIFICATE OF MERGER" has the meaning set forth in Section 1.2 below.

         "CLOSING" means the transfer of the Stock to ACG and the payment of the
Purchase Price to Securityholder pursuant to this Agreement.

         "CLOSING  BALANCE  SHEET" shall mean the internally  generated  closing
balance sheet and profit and loss statement of the Company for the period ending
the Closing  Date,  as adjusted  to present  them on an accrual  basis for a "C"
corporation.

         "CLOSING DATE" means the date of Closing,  established  under Section 3
of this Agreement.

         "COMPANY" means U.S.  Communications,  Inc. for all references prior to
the merger and the division or wholly owned  subsidiary of ACG that conducts the
business of U.S. Communications Division after the merger.

         "DGCL" has the meaning set forth in the introductory statement.

         "DECEMBER  1999  AUDIT"  shall  mean the audit of the  Company  for the
twelve (12) month period ending  December 31, 1999,  prepared in accordance with
generally accepted accounting principles  consistently applied by the accounting
firm of Rogoff,  Erickson,  Diamond  and Walker,  LLP.,  and  acceptable  to the
accounting firm of KPMG Peat Marwick.

         "DECEMBER  1999 12 MONTH  ADJUSTED  CASH  FLOW"  shall  mean that value
determined  in  accordance  with  generally   accepted   accounting   principles
consistently  applied,  and  based  on the  December  1999  Audit,  equal to the
difference  between (a) that number equal to the twelve (12) month net income of
the  Company as of  December  31,  1999 ,  adjusted  by EBITDA,  as that term is
defined in accordance with generally accepted  accounting  principles,  and more

<PAGE>

specifically as adjusted by adding back all deductions taken in determining such
number, if any, for interest, depreciation, income taxes and the amount of total
compensation  paid to T. Klein by the Company with respect to services  rendered
by him to the Company in 1999 and (b) that number equal to the Base  Salary,  as
that term is defined in the Employment  Agreement,  payable to T. Klein pursuant
to the Employment Agreement, as that term is defined herein.

         "EMPLOYMENT AGREEMENT" means the Employment Agreement to be executed by
ACG and T. Klein pursuant to Sections 6.5 and 6.17, hereof.

         "ENVIRONMENTAL,  HEALTH,  AND  SAFETY  LAWS"  means the  United  States
federal Comprehensive Environmental Response,  Compensation and Liability Act of
1980, the Resource  Conservation  and Recovery Act of 1976, and the Occupational
Safety and Health Act of 1970,  each as  amended,  together  with all other laws
(including  rules,  regulations,  codes,  and judicial  decisions  thereunder of
federal,  state,  local,  and  foreign  governments  and all  agencies  thereof)
concerning pollution or protection of the environment, public health and safety,
or employee health and safety, including laws relating to emissions, discharges,
releases,  or  threatened  releases of  Hazardous  Materials  into  ambient air,
surface water,  ground water, or lands or otherwise relating to the manufacture,
processing,  distribution,  use, treatment,  storage,  disposal,  transport,  or
handling of Hazardous Materials.

         "EXTREMELY  HAZARDOUS  SUBSTANCE"  has the meaning set forth in Section
302 of the  Emergency  Planning  and  Community  Right-to-Know  Act of 1986,  as
amended.

         "FINANCIAL   STATEMENT"  means  the  audited   consolidated   financial
statement  of the Company and its  subsidiaries  for the  Company's  fiscal year
ending in 1999,  prepared by Rogoff,  Erickson,  Diamond and  Walker,  LLP,  the
Company's regular independent  certified public accountant,  and accepted by the
accounting  firm of  KPMG  Peat  Marwick.  The  Financial  Statements  shall  be
presented after making all appropriate  adjustments  required to present them on
an accrual basis for a "C" corporation.

         "GAAP" shall mean in  accordance  with  generally  accepted  accounting
principles, consistently applied.

<PAGE>

         "HAZARDOUS MATERIALS" shall include, without limitation, any pollutants
or other toxic or hazardous substances or any solid, liquid,  gaseous or thermal
irritant or contaminant,  including smoke, vapor, soot, fumes,  acids,  alkalis,
chemicals  and waste  (including  materials  to be  recycled,  reconditioned  or
reclaimed),  oil  or  petroleum  flammable  materials,  explosives,  radioactive
materials, hazardous waste, hazardous or toxic substances, or related materials,
asbestos  requiring  treatment  as a matter of law,  or any other  substance  or
materials  defined as hazardous or harmful,  or requiring  special  treatment or
special handling by any federal,  state or local  environmental law,  ordinance,
rule  or   regulation   including,   without   limitation,   the   Comprehensive
Environmental  Response,  Compensation and Liability Act of 1980, as amended (42
U.S.C.  Sections 9601, et seq.), the Hazardous Materials  Transportation Act, as
amended  (49 U.S.C.  Section  1801,  et seq.),  the  Resource  Conservation  and
Recovery  Act, as amended (42 U.S.C.  Sections 6901 et seq.),  the  Occupational
Safety and  Health  Act of 1970 and the  regulations  adopted  and  publications
promulgated pursuant thereto.

         "T. KLEIN" shall mean Terry Klein, a stockholder,  officer and director
of the Company and a signatory to this Agreement.

         "KNOWLEDGE" shall mean, when referring to the Knowledge of the Company,
the actual knowledge of the  Securityholder,  or information the  Securityholder
had reason to know or should have known in his capacity as shareholder, officer,
director or employee of the Company.

         "MERGER" means the merger of U.S. Communications into ACG.

         "MERGER  CONSIDERATION" means the aggregate  consideration set forth in
Section 2 hereof.

         "NET WORTH" shall mean the total assets of the Company,  reduced by any
value placed on the intangible assets of the Company, including, but not limited
to, goodwill, less the total liabilities of the Company as those terms are shown
on the Financial Statement and on the Closing Balance Sheet.

         "NMBCA" has the meaning set forth in the introductory statement above.

         "PREMISES"  shall mean the leased  premises of the Company,  located at
5030 Edith Blvd., NE, Albuquerque, New Mexico 87107.

<PAGE>

         "REGISTRATION  RIGHTS  AGREEMENT"  shall mean the  Registration  Rights
Agreement executed by the Securityholder and Parent pursuant to Sections 6.9 and
6.20, hereof.

         "STOCK" shall mean all of the authorized issued and outstanding capital
stock of the Company, including all warrants, options, convertible securities or
right (contingent or otherwise) to purchase or acquire stock of the Company.

         "SURVIVING CORPORATION" has the meaning set forth in Section 1.1 below.

         "U.S.  COMMUNICATIONS  DIVISION" shall mean the business and affairs of
the Company, after the Company is merged with and into ACG.

                                    SECTION 1

                                   THE MERGER
                                   ----------

         1.1 EFFECTIVE  TIME. On the Closing Date (as defined in Section 3), and
subject to and upon the  fulfillment  or waiver of the terms and  conditions  of
this  Agreement,  the DGCL and the NMBCA,  Parent shall,  effective as of May 1,
2000,  acquire the Company by means of the  Company  being  merged with and into
ACG, where by the separate  corporate  existence of the Company shall cease, and
ACG  shall  continue  as  the  surviving  corporation.   ACG  as  the  surviving
corporation  after  the  Merger  is  hereinafter  sometimes  referred  to as the
"Surviving Corporation."

         1.2 CERTIFICATE OF MERGER. On the Closing Date,  assuming  satisfaction
or waiver of the  conditions  set forth in Section 6, the parties  hereto  shall
cause  the  Merger  to be  consummated  by filing a  Certificate  of Merger  and
Articles of Merger as contemplated by the DGCL and the NMBCA,  respectively (the
"Certificates of Merger"), together with any required related certificates, with
the  Secretary of State of the State of Delaware  and the  Secretary of State of
the State of New Mexico, respectively, in such form as required by, and executed
in  accordance  with the  relevant  provisions  of the DGCL and the  NMBCA.  The
respective  Certificates  of Merger  shall be filed on the Closing  Date and the
date of their actual filing shall be deemed the Filing Date.

         1.3 EFFECT OF THE MERGER.  Upon the  consummation  of the  Merger,  the
effect of the merger shall be as provided in this Agreement, the Certificates of
Merger and the applicable provisions of the DGCL and the NMBCA. Without limiting

<PAGE>

the generality of the foregoing,  and subject thereto,  upon the consummation of
the Merger all the property,  rights,  privileges,  powers and franchises of the
Company  and  ACG  shall  vest in the  Surviving  Corporation,  and  all  debts,
liabilities  and  duties  of  the  Company  and  ACG  shall  become  the  debts,
liabilities and duties of the Surviving Corporation.

         1.4 CERTIFICATE OF INCORPORATION, BY-LAWS.

              (i) CERTIFICATE OF INCORPORATION.  Unless otherwise  determined by
Parent  prior to the  Closing  Date,  upon the  consummation  of the  Merger the
Certificate  of  Incorporation  of ACG,  as in effect  immediately  prior to the
consummation  of the Merger,  shall be the Certificate of  Incorporation  of the
Surviving  Corporation until thereafter  amended in accordance with the DGCL and
such Certificate of Incorporation.

              (ii) BY-LAWS.  Unless otherwise  determined by Parent prior to the
consummation of the Merger,  the By-Laws of ACG, as in effect  immediately prior
to the closing  date,  shall be the By-Laws of the Surviving  Corporation  until
thereafter amended in accordance with the DGCL, the Certificate of Incorporation
of the Surviving Corporation and such By-Laws.

         1.5 DIRECTORS AND OFFICERS.  The directors of ACG immediately  prior to
the  consummation  of the Merger,  with the  addition of T. Klein,  shall be the
initial  directors  of  the  Surviving  Corporation,  each  to  hold  office  in
accordance  with the Certificate of  Incorporation  and By-Laws of the Surviving
Corporation,  and the officers of ACG immediately  prior to the  consummation of
the Merger shall be the initial officers of the Surviving  Corporation,  in each
case  until  their  respective  successors  are duly  elected or  appointed  and
qualified.

                                    SECTION 2

                              MERGER CONSIDERATION
                              --------------------

         2.1  SHARES OF  COMPANY.  As of the  Filing  Date,  each share of Stock
issued and outstanding as of the Closing Date, shall by virtue of the merger and
without  any action on the part of the holder  thereof,  be  converted  into the
right to  receive  an  amount  per share in  Arguss  Stock and in cash  ("Merger
Consideration"), without interest, determined in accordance with Section 2.2.

<PAGE>

         2.2 MERGER  CONSIDERATION.  The total merger  consideration  to be paid
collectively by Parent and ACG to the Securityholder shall be an amount equal to
the sum of the 1999 Value of the Company.  Each share of Stock shall be entitled
to  receive a sum equal to the 1999  Value of the  Company  divided by the total
number of shares of the Stock.

         The  Merger  Consideration  shall  be  paid  to the  Securityholder  as
follows:

              (a) At Closing,  the Securityholder shall receive the sum equal to
Fifty Per Cent (50%) of the 1999 Value of the Company  through  the  issuance of
shares of the authorized  capital stock of Arguss ("Arguss  Stock") as set forth
in Exhibit  2.2(a).  For the  purposes  of  determining  the number of shares of
Arguss Stock to be issued to the Securityholder pursuant to this Section 2.2(a),
the value of each  share of Arguss  Stock  shall be Fifteen  and 75/100  Dollars
($15.75).

              (b) At Closing,  the Securityholder shall receive the sum equal to
Fifty Per Cent (50%) of the 1999 Value of the Company in cash, wire transfer, or
certified funds as set forth on Exhibit 2.2(b).

              (c) The Net Worth of the Company on the Closing  Date shall be the
Net Worth of the Company as set forth on the Closing Balance Sheet. In the event
the Net Worth is less than Two Million Dollars ($2,000,000) on the Closing Date,
such  deficiency  shall  be  withheld  from  the  Merger  Consideration  paid to
Securityholder pursuant to Section 2.2(b), hereof. In the event the Net Worth is
greater than Two Million  Dollars  ($2,000,000) on the Closing Date, such excess
amount  shall  be paid as  additional  Merger  Consideration  to  Securityholder
pursuant  to  Sections  2.2(a) and  2.2(b),  hereof.  To enable  all  parties to
determine the Net Worth of the Company on the Closing Date,  the  Securityholder
shall cause the Closing Balance Sheet to be delivered to the Parent at Closing.

              (d) In the event  that the  market  price of Arguss  Stock is less
than Fifteen and 75/100 Dollars ($15.75) on the first anniversary of the Closing
Date (the "First Anniversary Date"),  additional shares of Arguss Stock shall be
issued to Securityholder.  The number of additional shares of Arguss Stock to be
issued pursuant to this Section 2.2 (d) shall be that number of shares,  if any,
which, when (1) multiplied by the greater of the market price of Arguss Stock as
of the  Closing  Date or the  market  price  of  Arguss  Stock  as of the  First

<PAGE>

Anniversary  Date,  and (2) added to the value of the number of shares of Arguss
Stock issued on the Closing Date pursuant to Section 2.2(a),  above,  multiplied
by the greater of the market price of Arguss  Stock as of the First  Anniversary
Date or the market price as of the Closing  Date,  causes the total value of the
Arguss Stock to equal Fifty per cent (50%) of the total  Merger  Consideration..
For the  purposes of this  Section 2.2 (d),  the "market  price"  shall mean the
closing  price of the shares of Arguss  Stock on the day  preceding  the Closing
Date or the First Anniversary Date.

         2.3  ALLOCATION OF MERGER  CONSIDERATION.  The allocation of the Merger
Consideration by Securityholder, if desired, is set forth in Exhibit 2.3.

                                    SECTION 3

                                     CLOSING
                                     -------

         The  Closing  of the  Merger  shall  occur  at the  offices  of  Arguss
Holdings, Inc., One Church Street, Suite 302, Rockville, Maryland 20850, at 2:00
p.m. on the 30th day of April,  2000,  or at such other time,  date and place as
Parent and Securityholder may agree (the "Closing Date"). Closing may take place
by telefacsimile. At the Closing:

         3.1 CANCELLATION.

              (a) Upon filing of the Certificates of Merger,  each such share of
the Stock  shall be canceled  and shall  thereafter  evidence  only the right to
receive a pro rata share of the Merger Consideration.

              (b) Upon filing of the Certificates of Merger, each share, if any,
of the Stock held in the  treasury  of the Company and each share of Stock owned
directly or indirectly by any wholly owned Subsidiary of the Company immediately
prior to the  consummation  of the  Merger  shall,  by virtue of the  Merger and
without any action on the part of the holder  thereof,  cease to be outstanding,
be canceled and retired without payment of any consideration  therefor and cease
to exist.

         3.2 DELIVERY OF CASH AND EXCHANGE OF CERTIFICATES.

              (a) EXCHANGE PROCEDURES. As of the Closing Date, upon surrender of
the  certificates  representing  shares of the Stock  (the  "Certificates")  for

<PAGE>

cancellation to Parent  together with such other  customary  documents as may be
required to transfer the Stock the holder of such Certificates shall be entitled
to  receive  in  exchange   therefore   their  pro  rata  share  of  the  Merger
Consideration as provided in Section 2.2(a),  (b), (c),(e),  (f) and (g), above,
and  the  Certificates  so  surrendered   shall  forthwith  be  canceled.   Each
outstanding  Certificate that, prior to the Closing Date,  represented shares of
the Stock will be deemed  from and after the  Closing  Date,  for all  corporate
purposes,  to  evidence  the  right to  receive a pro rata  share of the  Merger
Consideration into which such shares of the Stock shall have been so converted.

              (b) NO LIABILITY.  Neither  Parent,  ACG, nor the Company shall be
liable to any holder of the Stock for any Merger  Consideration  delivered  to a
public  official  pursuant  to any  applicable  abandoned  property,  escheat or
similar law.

              (c)  WITHHOLDING  RIGHTS.  Parent  shall be entitled to deduct and
withhold  from the  Merger  Consideration  otherwise  payable  pursuant  to this
Agreement to any holder of the Stock such amounts, if any, as Parent is required
to deduct and  withhold  with  respect to the making of such  payment  under the
Code,  or any  provision of state,  local or foreign tax law. To the extent that
amounts are so withheld by Parent, such withheld amount shall be treated for all
purposes  of this  Agreement  as having been paid to the holder of the shares in
respect of which such deduction and withholding  was made by Parent,  and Parent
shall  pay all such  withheld  amounts  to the  proper  authorities  within  the
ordinary course of business.

                                    SECTION 4

                     REPRESENTATIONS, WARRANTIES AND CERTAIN

                   COVENANTS OF SECURITYHOLDER AND THE COMPANY
                   -------------------------------------------

         As a material  inducement to induce  Parent and ACG to  consummate  the
Merger  under this  Agreement,  the  Securityholder  and Company  represent  and
warrant  that  each of the  matters  set  forth in this  Section  4 are true and
correct as of the date hereof,  and acknowledge that Parent and ACG's entry into
this Agreement and the  performance of their  obligations  hereunder are made in
reliance  upon the  completeness  and  accuracy of each of the matters set forth
herein.  The  representations  and  warranties  being made by the Company  shall

<PAGE>

survive up and until the Closing Date. The  representations and warranties being
made by the Securityholder shall survive as setforth in Section 12.11, herein.

         4.1 ORGANIZATION, QUALIFICATIONS AND CORPORATE POWER.

              (a)  The  Company  is a  corporation  duly  incorporated,  validly
existing  and in good  standing  under  the  laws of the  State  of New  Mexico.
Attached as Exhibit 4.1(a) is a list of all states in which the Company, and its
subsidiaries,  are qualified to do business.  The Company, and its subsidiaries,
are duly qualified as a foreign  corporation in each other jurisdiction in which
the  failure  to be  qualified  would have a material  adverse  effect  upon the
Company,  and its  subsidiaries.  The  Company,  and its  subsidiaries,  has the
corporate  power and authority to own and hold their  properties  and to conduct
their  businesses as currently  conducted  and as proposed to be  conducted,  to
execute, deliver and perform this Agreement to which the Company is a signatory.

              (b)  Except as listed on  Exhibit  4.1(b),  the  Company,  and its
subsidiaries, do not own of record or beneficially,  directly or indirectly, (i)
any shares of outstanding  capital stock or securities  convertible into capital
stock  of any  other  corporation  or (ii)  any  participating  interest  in any
partnership, joint venture or other non-corporate business enterprise.

         4.2 AUTHORIZATION OF AGREEMENT.

              (a) The execution, delivery and performance by the Company of this
Agreement to which it is a signatory  hereunder have been duly authorized by all
requisite corporate action and will not (i) violate any applicable  provision of
law,  any order of any court or other  agency of  government,  the  Articles  or
Certificate of Incorporation  or Bylaws of the Company,  or any provision of any
indenture,  agreement or other  instrument  by which the Company,  or any of its
properties or assets is bound or affected,  or (ii) conflict  with,  result in a
material  breach of or  constitute  (with due notice or lapse of time or both) a
default under any such indenture,  agreement or other instrument,  or results in
being declared  void,  voidable or without  further  binding effect any license,
governmental  permit or  certification,  employee plan,  note,  bond,  mortgage,
indenture,  deed of  trust,  franchise,  lease,  contract,  agreement,  or other
instrument or commitment or obligation to which Company is a party,  or by which
Company, or any of its assets, may be bound, subject or affected,  (iii) violate
any  order,  writ,  injunction,  decree,  judgment,  or  ruling  of any court or

<PAGE>

governmental  authority  applicable  to  Company or any of its  assets,  or (iv)
except as  otherwise  provided  in this  Agreement,  result in the  creation  or
imposition  of any lien,  charge or  encumbrance  of any nature  whatsoever  not
arising in the ordinary  course of business upon any of the properties or assets
of the Company  except as to conflicts,  breaches and  violations  that will not
have a  material  adverse  effect  on the  business,  property  or assets of the
Company.

         4.3 CAPITAL STOCK. The authorized capital stock of the Company, and its
subsidiaries,  and the  holders  of the issued  and  outstanding  shares of such
capital  stock are set forth in  Exhibit  4.3  hereto.  Except as  disclosed  in
Exhibit 4.3, there is no (i) subscription, warrant, option, convertible security
or other right  (contingent  or  otherwise) to purchase or acquire any shares of
any class of capital  stock of the  Company,  or of its  subsidiaries,  which is
authorized  or  outstanding,  (ii) the Company,  and its  subsidiaries,  have no
commitments  to issue any shares,  warrants,  options or other such rights or to
distribute  to  holders  of any  class of its  capital  stock  any  evidence  of
indebtedness  or  assets,  (iii)  the  Company,  and its  subsidiaries,  have no
obligation  (contingent or otherwise) to purchase,  redeem or otherwise  acquire
any shares of its capital  stock or any interest  therein or to pay any dividend
or make any other distribution in respect thereof, and (iv) the Company, and its
subsidiaries,  have no obligation  or  commitment to register  under the Act any
securities  issued or to be  issued by it.  All of the  issued  and  outstanding
shares of the capital stock of the Company,  and of its subsidiaries,  have been
validly issued in compliance with all federal and state  securities laws and are
fully paid and non-assessable.

         4.4  FINANCIAL  STATEMENTS.  The  Company has  delivered  to Parent the
Financial Statement,  the Closing Balance Sheet, and the December 1999 Audit. To
the extent that they cover periods  ending on or before the Closing  Date,  such
Financial Statement,  Closing Balance Sheet and December 1999 Audit are complete
and correct,  have been prepared in accordance  with GAAP and fairly present the
consolidated financial position of the Company, and its subsidiaries, as of such
respective  dates after making all appropriate  adjustments  required to present
the  Financial  Statement,  Closing  Balance Sheet and December 1999 Audit on an
accrual  basis for a "C"  corporation,  and the  results of  operations  for the
respective periods then ended. Except as set forth in such Financial  Statement,
Closing Balance Sheet and December 1999 Audit or incurred in the ordinary course

<PAGE>

of business,  to the  knowledge of  Securityholder  and the Company  neither the
Company nor any of its  subsidiaries  has any material  obligation or liability,
absolute,  accrued or contingent except obligations and liabilities which do not
adversely effect the business, property or assets of the Company.

         4.5 ABSENCE OF  CHANGES.  Except as listed in Exhibit 4.5 and since the
time period covered by the Financial  Statement,  neither the Company nor any of
its subsidiaries, have:

              (a)  Transferred,  assigned,  conveyed  or  liquidated  any of its
assets or entered into any  transaction  or incurred any liability or obligation
which  affects  the  assets or the  conduct of its  business,  other than in the
ordinary course of the Company's business;

              (b) Incurred any change in its business,  operations, or financial
condition  which  may  have a  material  adverse  effect  on its  assets  or its
business,  or become  aware of any event  which may  result in any such  adverse
change;

              (c) Suffered any material destruction,  damage or loss relating to
its assets or the conduct of its business whether or not covered by insurance;

              (d)  Suffered,  permitted  or incurred  other than in the ordinary
course of business the  imposition of any lien,  charge,  encumbrance  (which as
used  herein  includes,   without  limitation,  any  mortgage,  deed  of  trust,
conveyance  to secure debt or security  interest)  whether or not  contingent in
nature,  or claim upon any of its assets,  except for any current year lien with
respect to personal or real property taxes not yet due and payable;

              (e) Committed,  suffered, permitted or incurred any default in any
liability  or  obligation  which,  in the  aggregate,  have  had or will  have a
material adverse effect upon its assets or the conduct of its business;

              (f) Made or agreed to any change in the terms of any  contract  or
instrument  to which it is a party  which has a material  adverse  effect on its
assets or the conduct of its business;

              (g)  Knowingly  waived,  canceled,  sold or otherwise  disposed of
other than in the  ordinary  course of  business,  for less than the face amount
thereof,  any  claim or right  relating  to its  assets  or the  conduct  of its
business, which it has against others;

<PAGE>

              (h) Declared, promised or made any distribution from its assets or
other  payment  from the  assets  to its  shareholders  (other  than  reasonable
compensation for services actually  rendered) or issued any additional shares or
rights,  options or calls  with  respect  to its  shares of  capital  stock,  or
redeemed,  purchased or otherwise acquired any of its shares, or made any change
whatsoever in its capital structure;

              (i) Paid, agreed to pay or incurred any obligation for any payment
for,  any  contribution  or other  amount to, or with  respect to, any  employee
benefit  plan,  or paid or agreed to pay any  bonus or  salary  increase  to its
executive officers or directors, or made any increase in the pension, retirement
or other  benefits of its  directors  or  executive  officers  other than in the
ordinary course of business;

              (j) Committed,  suffered,  permitted, incurred or entered into any
transaction  or event other than in the normal  course of  business  which would
increase its liability for any prior taxable year;

              (k) Incurred any other liability or obligation or entered into any
transaction  other than in the  ordinary  course of business  which would have a
material adverse effect on its condition (financial or otherwise); or

              (l) Received any notices of, or has reason to believe, that any of
its customers or clients have taken or contemplate any steps which could disrupt
its business  relationship  with said  customer or client or could result in the
diminution in the value of the business of the Company as a going concern.

         4.6  ACTIONS  PENDING.  Except as listed on  Exhibit  4.6,  there is no
action, suit,  investigation,  or proceeding pending or, to the knowledge of the
Company or Securityholder threatened against the Securityholder, the Company, or
its subsidiaries,  or any of its properties or rights, before any court or by or
before any  governmental  body or  arbitration  board or  tribunal  and no basis
exists for any such action, suit,  investigation or proceeding which will result
in any material liability or affirmative or negative injunction being imposed on
the Company,  or its subsidiaries,  or Securityholder.  The foregoing  includes,
without  limiting its  generality,  actions  pending or threatened (or any basis
therefor known to the Company or Securityholder)  involving the prior employment

<PAGE>

of  any  employees  or  prospective   employees  of  the  Company,   or  of  its
subsidiaries,  or the  Company's  use, in connection  with its business,  of any
information  or techniques  which might be alleged to be  proprietary  to former
employer(s) of its employees.

         4.7  BUSINESS  PROPERTY  RIGHTS.  To  the  best  of  the  Company's  or
Securityholder's  knowledge,  no person or entity has made or threatened to make
(or has any valid  reason to  threaten)  any claims  that the  operation  of the
business of the Company,  or of its subsidiaries,  is or will be in violation of
or infringe on any technology,  patents,  copyrights,  trademarks,  trade names,
service  marks  (and  any  application  for  any  of  the  foregoing)  licenses,
proprietary  information,  know-how,  or trade secrets (the  "Business  Property
Rights").  To the best of the Company's or  Securityholder's  knowledge no third
party is infringing  upon or violating any of the  Company's  Business  Property
Rights and the  Company  has the  exclusive  right to use the same.  None of the
employees,  directors,  or stockholders of the Company's or its subsidiaries has
any valid claim whatsoever  (whether  direct,  indirect or contingent) of right,
title or interest in or to any of the Company's Business Property Rights.

         4.8  LIABILITIES.  Except as listed in Exhibit 4.8, to the knowledge of
Securityholder and the Company neither the Company, or its subsidiaries, has any
liabilities or obligations,  whether accrued, absolute,  contingent or otherwise
(individually  or in the  aggregate),  which  are  of a  nature  required  to be
reflected in financial  statements  prepared in accordance with GAAP,  including
without  limitation,  any liability  which might result from an audit of its tax
returns by any appropriate  authority except (i) the liabilities and obligations
set forth in the "Financial  Statements or Closing Balance Sheet")  delivered in
accordance with Section 4.4 and (ii)  liabilities  and obligations  incurred for
the purpose of enabling the Company or its  subsidiaries to conduct their normal
business  (in each case in normal  amounts  and  incurred  only in the  ordinary
course of business)  except such  liabilities and obligations that do not have a
material  adverse  effect on the  business,  property and assets of the Company.
Except as disclosed in the Financial Statements or Closing Balance Sheet, to the
knowledge  of  Securityholder  and the  Company  neither  the  Company,  nor its
subsidiaries,  is in default with respect to any  liabilities or obligations and
all such  liabilities  or  obligations  shown  and  reflected  in the  Financial
Statements and Closing Balance Sheet, and such  liabilities  incurred or accrued
subsequent to the Company's and its  subsidiaries  incorporation,  have been, or

<PAGE>

are being,  paid or discharged as they become due, and all such  liabilities and
obligations were incurred in the ordinary course of business except with respect
to defaults that do not have a material adverse effect on the business, property
and assets of the Company.

         4.9 OWNERSHIP OF ASSETS AND LEASES.  Attached  hereto as Exhibit 4.9(a)
is a complete  and correct  list and brief  description,  as of the date of this
Agreement, of all real property and material items of personal property owned by
the Company, or by its subsidiaries,  and all of the leases and other agreements
relating to any real,  personal or intangible  property owned, used, licensed or
leased by the Company,  and its subsidiaries.  The Company, and its subsidiaries
have good and marketable  title to all of its assets,  including those listed on
Exhibit 4.9(a), and any income or revenue generated therefrom, in each case free
and clear of any liens,  claims,  charges,  options,  rights of tenants or other
encumbrances  except (i) as  disclosed  and  reserved  against in the  Financial
Statements (to the extent and in the amounts so disclosed and reserved against),
(ii) for liens  arising from current  taxes not yet due and payable and (iii) as
set forth on Exhibit  4.9(b).  Each of the leases and agreements of the Company,
and its subsidiaries are in full force and effect and constitute a legal,  valid
and binding  obligation of the Company,  and of its subsidiaries,  and the other
respective parties thereto,  enforceable in accordance with its terms, except as
enforceability  may  be  limited  by  applicable   equitable  principles  or  by
bankruptcy, insolvency, reorganization, moratorium, or similar laws from time to
time in effect affecting the enforcement of creditors'  rights  generally,  and,
there is not under any of such leases or agreements  existing any default of the
Company,  or  of  its  subsidiaries,   or  to  the  best  of  the  Company's  or
Securityholder's  knowledge of any other parties  thereto (or event or condition
which,  with  notice or lapse of time,  or both,  would  constitute  a default).
Neither the  Company,  nor any of its  subsidiaries,  has received any notice of
violation of any applicable  regulation,  ordinance or other law with respect to
its operations or assets,  and, to the best of the Company's  knowledge there is
not any such violation or grounds  therefor which could  adversely  affect their
assets or the  conduct of its  business.  Neither  the  Company,  nor any of its
subsidiaries,  is a party to any contract or  obligation  whereby an absolute or
contingent right to purchase,  obtain or acquire any rights in any of the assets
has been granted to anyone. There does not exist and will not exist by virtue of

<PAGE>

the  transactions  contemplated  by this  Agreement  any claim or right of third
persons which may be legally asserted against any asset of the Company's, or its
subsidiaries.

         4.10 TAXES. The Company, and its subsidiaries, have paid all taxes due,
assessed  and owed by them as  reflected  on their tax  returns  and have timely
filed all federal,  state, local and other tax returns which were required to be
filed and which were due prior to the Closing  Date,  except for those taxes set
forth on Exhibit  4.10(a).  All federal,  state,  local,  and other taxes of the
Company, or of its subsidiaries, accruable since the filing of such returns have
been properly accrued. No federal income tax returns for the Company, or for its
subsidiaries,  have ever been  audited by the  Internal  Revenue  Service or any
state or local taxing  authority,  except as described  in Exhibit  4.10(b).  No
other  proceedings  or other  actions  which are still pending or open have been
taken for the assessment or collection of additional  taxes of any kind from the
Company,  or from its  subsidiaries,  for any period for which returns have been
filed,  and to the Company's  knowledge,  no other  examination  by the Internal
Revenue  Service or any other taxing  authority  affecting  the Company,  or its
subsidiaries,  is now  pending.  Except  for those  taxes  set forth on  Exhibit
4.10(a),  taxes which the Company, or its subsidiaries,  were required by law to
withhold  or  collect  subsequent  to the  incorporation  of the  Company or its
subsidiaries,  have been  withheld or  collected  and have been paid over to the
proper  governmental  authorities or are properly held by the Company, or by its
subsidiaries,  for such payment and are so withheld,  collected and paid over as
of the date hereof.  No waivers of statutes of  limitations  with respect to any
tax returns of the Company,  or of its subsidiaries,  nor extensions of time for
the  assessment  of any tax have  been  given by any  current  employees  of the
Company,  or of  its  subsidiaries.  There  is not  and  there  will  not be any
liabilities  for federal,  state and local income,  sales,  use, excise or other
taxes arising out of, or attributable to, or affecting the assets or the conduct
of the  business  of the  Company  or its  subsidiaries,  through  the  close of
business on the Closing Date, or  attributable  to the conduct of the operations
of the  Company,  or its  subsidiaries,  at any time  for  which  Parent  or the
Surviving  Corporation  will  have  any  liability  for  payment  or  otherwise,
including,  but not limited  to, any tax  assessed or imposed as a result of any
conversion  by the Company or any of its  subsidiaries  from a Subchapter S to a
Subchapter C corporation.  After the Closing,  there does not and will not exist
by virtue of the  transactions  contemplated by this Agreement any liability for

<PAGE>

taxes which may be asserted  by any taxing  authority  against the assets of the
Company or its subsidiaries,  or the operation of their businesses,  and no lien
or other  encumbrance  for taxes will attach to such assets or the  operation of
their businesses.

         4.11 CONTRACTS, OTHER AGREEMENTS.  Attached hereto as Exhibit 4.11 is a
true and complete list of each material contract, agreement and other instrument
to which  the  Company,  or its  subsidiaries,  is a party,  including,  but not
limited to, all bank and financing documents.  At Parent's request, the Company,
and its  subsidiaries,  shall  deliver to Parent a true and complete copy of any
such contract,  agreement or instrument.  All of the contracts,  agreements, and
instruments  described  in Exhibit  4.11 hereto are valid and  binding  upon the
Company,  or its  subsidiaries,  and the other  parties  thereto and are in full
force and effect, and, neither the Company,  nor to the best of the Company's or
Securityholder's  knowledge any other party to any such contract,  commitment or
arrangement  has  breached  any  provision  of, or is in default in any  respect
under, the material terms thereof. No contract, agreement or other instrument to
which the Company, or its subsidiaries, are a party will be materially breached,
violated  or  result in a default  as a result of the  transaction  contemplated
hereunder.

         4.12 GOVERNMENTAL APPROVALS. No registration or filing with, or consent
or approval  of, or other action by, any  federal,  state or other  governmental
agency or  instrumentality  is or will be  necessary  for the  valid  execution,
delivery and performance of this Agreement by the Company.

         4.13  LACK OF  DEFAULTS.  The  Company  and  Securityholder  know of no
default in performance of any obligation, covenant or condition contained in any
note,  debenture,  mortgage or other contract or agreement of any nature or kind
to which either is a party, nor of any default with respect to any order,  writ,
injunction or decree of any court,  governmental  authority or arbitration board
or tribunal  to which  either is a party,  which  would have a material  adverse
effect on the assets or business of the Company,  its subsidiaries.  The Company
and Securityholder know of no violation of any law, ordinance, governmental rule
or  regulation  to which either is subject,  nor has either failed to obtain any
licenses, permits, franchises or other governmental authorizations necessary for
the ownership of their  properties or to the conduct of their business where any

<PAGE>

such violation or failure would likely result in a material  adverse effect upon
the  business  of  the  Company,   its  subsidiaries.   The  Company,   and  its
subsidiaries, have conducted and will conduct their businesses and operations in
substantial  compliance  with all federal,  state,  county and  municipal  laws,
statutes,  ordinances and regulations and are in substantial compliance with all
applicable  requirements of all federal,  state, county and municipal regulatory
authorities.

         4.14 EMPLOYEES AND EMPLOYEE BENEFIT PLANS.

              (a) Attached  hereto as Exhibit  4.14(a) is a list of each pension
retirement,  profit-sharing,  deferred  compensation,  bonus or other  incentive
plan, program,  arrangement,  or agreement or other  understanding,  or medical,
vision,  dental or other health plan, or life  insurance or disability  plan, or
any other employee benefit plan,  including,  without limitation,  any "employee
benefit  plan" as defined  in Section  3(3) of the  Employee  Retirement  Income
Security Act of 1974, as amended ("ERISA"),  to which the Company contributes or
is a party or is bound or under  which it may have  liability  and  under  which
employees or former  employees of the Company or of its  subsidiaries  (or their
beneficiaries)  are eligible to  participate  or derive a benefit (the foregoing
herein referred to as the "Employee Benefit Plans). The Company has delivered to
Parent  true,  correct and  complete  copies of all  Employee  Benefit  Plans as
currently in effect,  and the Company has complied in all material  aspects with
any and all  obligations  required  of it under the terms of any plan  listed on
Exhibit 4.14(a).

              (b)  Attached  hereto as Exhibit  4.14(b)  are the  names,  social
security  numbers and current  rate of  compensation  of all salaried and hourly
paid employees employed by the Company,  or by its subsidiaries,  as of the date
hereof,  and at Closing the  Company  will  provide an updated  list of all such
employees as of the date of closing.

         4.15  INSURANCE.  Attached  hereto as Exhibit  4.15 is a  complete  and
correct  list and  description  of all of the policies of  liability,  property,
workers'  compensation  and other  forms of  insurance  or bonds  carried by the
Company,  or its  subsidiaries,  for the benefit of or in connection  with their
assets and  businesses.  All of such  policies  are in full force and effect and
there are no overdue premiums or other payments on such policies and neither the
Company nor any of its subsidiaries,  has received any notice of cancellation or
termination of any of these policies. Neither the Securityholder nor the Company

<PAGE>

have knowledge of any change or proposed change to any of the rates set forth in
the policies listed on Exhibit 4.15 other than as set out in the Policies.

         4.16 LABOR  MATTERS.  Except as set forth on Exhibit 4.16,  none of the
employees  of the Company or of its  subsidiaries  are  covered by a  collective
bargaining  agreement,  and no collective bargaining efforts with respect to any
of the  employees  of the  Company,  its  subsidiaries,  are  pending or, to the
knowledge of the Company  threatened.  No labor dispute,  strike, work stoppage,
employee  collective  action or labor  relations  problem  of any kind which has
materially adversely affected or may so affect the Company, or its subsidiaries,
or any of their businesses or operations, is pending or, to the knowledge of the
Company is threatened.  The Company, and its subsidiaries,  have complied in all
material respects with the reporting and withholding  provisions of the Code and
the Federal Insurance Contribution Act and all similar state and local laws, and
with the federal, state, and local laws, ordinances,  rules and regulations with
respect  to  employment  and  employment  practices,  terms  and  conditions  of
employment  and  of  the  workplace,   wages  and  hours  and  equal  employment
opportunity.

         4.17 BROKERS AND FINDERS.  Except for the fees listed on Exhibit  4.17,
neither  the  Securityholder  nor the  Company or any of its  subsidiaries,  has
incurred or become liable for any  commission,  fee or other similar  payment to
any  broker,  finder,  agent  or  other  intermediary  in  connection  with  the
negotiation  or  execution  of  this  Agreement  or  the   consummation  of  the
transactions  contemplated hereby.  Securityholder  agrees to be responsible for
paying all Broker  fees  incurred by the  Company,  and its  subsidiaries,  as a
result of this transaction.

         4.18 ACCOUNTS RECEIVABLE.

              (a) All accounts receivable of the Company,  and its subsidiaries,
shown  on the  consolidated  audited  balance  sheet  of the  Company,  and  its
subsidiaries,  as of December  31, 1999,  and all notes and accounts  receivable
acquired by the Company and its  subsidiaries  subsequent  to December 31, 1999,
reflect actual transactions,  have arisen in the ordinary course of business and
have been collected or are now in the process of collection  without recourse to
any judicial  proceedings  in the ordinary  course of business in the  aggregate
recorded  amounts  thereof,  less the  applicable  allowances  reflected on such
balance sheets with respect to the accounts  receivable  shown thereon or set up

<PAGE>

on the respective books of the Company,  and its  subsidiaries,  with respect to
the notes and accounts receivable acquired subsequent to September 30, 1997.

              (b) Except as set forth on Exhibit  4.18(b),  the  Company  has no
knowledge  as to  any of  the  accounts  receivable  of  the  Company  or of its
subsidiaries,  being  subject  to any  lien  or  claim  of  offset,  set  off or
counterclaim not provided for by the Company's, its subsidiaries, or affiliates,
allowance for doubtful accounts as of the date of execution hereof.

         4.19  CONFLICTS OF INTERESTS.  Except as described in Exhibit 4.19 (a),
no officer, director or stockholder of the Company, or of its subsidiaries,  was
or is, directly or indirectly,  a joint investor or co-venturer  with, or owner,
lessor, lessee,  licensor or license of any real or personal property,  tangible
or intangible,  owned or used by, or a lender to or debtor of, the Company,  its
subsidiaries,  and neither the  Company,  nor any of its  subsidiaries,  has any
commitments  or obligations  as a result of any such  transactions  prior to the
date hereof. Except as described in Exhibit 4.19 (b), and except for directly or
indirectly  holding  less than five percent  (5%) of the  outstanding  shares of
stock  in  a  company  which  is  publicly   traded,   none  of  such  officers,
stockholders,   or  directors  own  or  have  owned,   directly  or  indirectly,
individually or  collectively,  an interest in any entity which is a competitor,
customer or supplier of (or has any existing contractual  relationship with) the
Company, its subsidiaries.

         4.20 ENVIRONMENTAL COMPLIANCE.  Except as listed on Exhibit 4.20(a), to
the best of the  Company's  knowledge,  the Company has complied in all material
respects with all applicable federal,  state and local Environmental  Health and
Safety Laws with  respect to its Premises  and its  operations  and has kept its
premises free and clear of any liens and charges imposed  pursuant to such laws.
Neither the Company, nor any its subsidiaries,  has received any notice that any
facts or conditions exist which would give rise to any violation, claim, charge,
penalty or liability relating to any applicable  Environmental Health and Safety
Laws of any governmental body or agency having jurisdiction over the premises.

         4.21  OWNERSHIP OF THE STOCK.  Except as provided in Exhibit 4.21,  the
Securityholder  owns all of the Stock beneficially and of record, free and clear
of all liens,  restrictions,  encumbrances,  charges, and adverse claims and the

<PAGE>

Stock to be  purchased  hereunder  constitutes  One  Hundred  Per Cent (100%) of
issued and outstanding stock of the Company.

         4.22 ABSENCE OF SENSITIVE PAYMENTS.  Neither the Securityholder nor, to
the knowledge of the Securityholder and Company, any of the directors, officers,
or stockholders of the Company, its subsidiaries:

              (a) has made or has agreed to make any contributions,  payments or
gifts of funds or property to any governmental official, employee or agent where
either the payment or the purpose of such  contribution,  payment or gift was or
is illegal under the laws of the United States, any state thereof,  or any other
jurisdiction (foreign or domestic);

              (b) has established or maintained any unrecorded fund or asset for
any purpose,  or has made any false or artificial entries on any of its books or
records for any reason; or

              (c)  has  made  or  has  agreed  to  make  any   contribution   or
expenditure, or has reimbursed any political gift or contribution or expenditure
made by any other person to candidates for public office, whether federal, state
or local,  foreign  or  domestic  where  such  contributions  were or would be a
violation of applicable law.

         4.23 APPROVAL OF MERGER; RELATED MATTERS. The Securityholder represents
and warrants that such  Securityholder,  in his capacity as a shareholder of the
Company  (i)  approves  of and  consents  to the  Merger  as set  forth  in this
Agreement,  (ii)  waives  any  notice  of a  shareholder's  meeting  or  similar
corporate  formality  in  connection  with  the  approval  of  the  transactions
described herein,  including,  without limitation,  the Merger, (iii) waives any
rights to protest or object to the Merger or to the  exercise  of any  statutory
remedy of appraisal as to the Stock owned by such  Securityholder as provided in
the NMBCA,  (iv) has  received  a copy of  resolutions  approving  the Merger in
accordance with the NMBCA, and (v), to the extent such  Securityholder  owes any
amounts to the Company,  or its  subsidiaries,  pursuant to any Promissory  Note
issued by such Securityholder to the Company,  or to its subsidiaries,  consents
to  the  use  of  a  portion  of  the  Merger  Consideration   payable  to  such
Securityholder to pay off each such Promissory Note.

<PAGE>

                                    SECTION 5

                     REPRESENTATIONS, WARRANTIES AND CERTAIN

                           COVENANTS OF PARENT AND ACG
                           ---------------------------

         As a material  inducement to induce  Securityholder  to consummate  the
Merger under this  Agreement,  Parent and ACG represent and warrant that each of
the  matters  set forth in this  Section 5 are true and  correct  as of the date
hereof, and acknowledge that Securityholder's  entry into this Agreement and the
performance  of  their  obligations  hereunder  are  made in  reliance  upon the
completeness  and  accuracy  of  each  of the  matters  set  forth  herein.  The
representations and warranties being made by the Parent and ACG shall survive as
set forth in Section 12.11 herein.

         5.1  ORGANIZATION,  STANDING,  ETC.  Parent and ACG are duly organized,
validly  existing and in good  standing  under the laws of its  jurisdiction  of
their organization. ACG is a 100% direct subsidiary of Parent, which owns all of
the issued and outstanding shares of the capital stock of ACG.

         5.2  AUTHORIZATION,  ETC. The execution and delivery of this  Agreement
and any other  instruments  or documents  required to be executed and  delivered
hereby, and the purchase of the Stock contemplated  hereby, have been authorized
by such authorities or by such court of competent  jurisdiction,  if any, as may
be required by applicable law and constitute a valid and binding  obligations of
Parent and of ACG, enforceable against them in accordance with the terms of this
Agreement.

         5.3  NO  BREACH  OR  DEFAULTS  CAUSED  BY  AGREEMENT.  The  making  and
execution,  delivery,  and  performance by Parent and ACG of this Agreement does
and will not breach or constitute (with due notice or lapse of time or both) any
default in any articles,  by-laws,  agreements,  or  instruments  of any kind or
character to which  Parent or ACG are a signatory  or a party,  or by which they
may be bound, subject to, or affected, now or in the future.

         5.4 GOVERNMENTAL  APPROVALS. No registration or filing with, or consent
or approval of, or other action by, any federal,  state,  or other  governmental
agency or  instrumentality,  which has not been  made or  obtained  prior to the
execution of this  Agreement  by Parent or ACG, is or will be necessary  for the
valid execution, delivery, and performance of this Agreement by Parent and ACG.

<PAGE>

         5.5 BROKERS FEES. Parent and ACG represent there are no brokers,  other
than those set forth on  Exhibit  5.5,  involved  in this  transaction  on their
behalf.  Parent and ACG shall pay all broker fees contractually  obligated to be
paid to those brokers set forth on said Exhibit.

         5.6 AUTHORIZED SHARES OF STOCK. There exists sufficient authorized, but
unissued,  shares of Arguss  Stock  necessary  to enable  Parent to satisfy  any
obligation  of it to issue  shares  of  Arguss  Stock  pursuant  to this  Merger
Agreement.

         5.9  CORPORATE  FILINGS.  All  information   contained  in  any  public
disclosure  made by Parent pursuant to the Act or otherwise was true and correct
at the time of its disclosure.

                                    SECTION 6

                              CONDITIONS TO CLOSING
                              ---------------------

     A.  Parent's obligation to consummate the Merger under this Agreement shall
be subject to fulfillment of all of the following  conditions on or prior to the
Closing, any of which may be waived in writing by Parent.

         6.1  PERFORMANCE  OF  AGREEMENTS.  The Company shall have performed all
agreements  contained  herein and  required to be performed by it prior to or at
the  Closing  and  all of the  representations  and  warranties  made  by it and
Securityholder  in this  Agreement  shall be true and  correct as of the Closing
Date.

         6.2 LACK OF MATERIAL  LIABILITIES.  Neither the Company, nor any of its
subsidiaries,  shall have incurred any material liability,  direct or contingent
(as that term is  ordinarily  used),  other than in the  ordinary  course of its
business,  since  October  31,  1999;  including,  but not  limited  to, any tax
liability  resulting  from  the  transaction  contemplated  hereby,  or  by  the
Company's compliance with any of the terms and conditions hereof.

         6.3 FINANCIAL STATEMENT. Parent shall have received a balance sheet and
profit and loss statement for the Company, and its subsidiaries,  as of December
31, 1999.

<PAGE>

         6.4 LACK OF  DEFAULTS.  No Event of Default  (as  defined in Section 10
hereof) and no event or condition  which,  with notice or the lapse of time,  or
both, would constitute an Event of Default, shall exist.

         6.5  EMPLOYMENT  AGREEMENT.  T. Klein and ACG shall have  executed  the
Employment Agreement, a copy of which is attached hereto as Exhibit 6.5(a).

         6.6  OPINION  OF  COUNSEL.  Parent  shall have  received  an opinion of
counsel from the attorneys for the Company,  and Securityholder  dated as of the
Closing  Date,  in form and  substance  substantially  similar to that  attached
hereto as Exhibit 6.6.

         6.7 COMPLIANCE CERTIFICATE.  The Company shall have delivered to Parent
the  certificate,  attached  hereto as Exhibit 6.7,  executed by its  President,
dated the Closing Date,  certifying the fulfillment of the conditions  specified
in this  Section  6 and  the  accuracy  of the  representations  and  warranties
contained in Section 4 hereof.

         6.8 KEY-PERSON TERM LIFE INSURANCE.  The Company shall have applied for
an insurance policy on the life of T. Klein,  such policy (a) to name the Parent
as sole beneficiary, (b) to be in form and substance satisfactory to the Parent,
and (c) to be in the amount of Two Million Dollars ($2,000,000).

         6.9 REGISTRATION RIGHTS AGREEMENT.  The Securityholder and Parent shall
have executed the  Registration  Rights  Agreement,  a copy of which is attached
hereto as Exhibit 6.9.

         6.10 RELEASE FROM  SECURITYHOLDER.  Securityholder  shall have executed
and  delivered to the Parent,  in a form  satisfactory  to Parent's  counsel,  a
release of any claim that he may have against the Company, and its subsidiaries,
for the  repayment  of any  loan,  claim  for  unpaid  compensation,  claim  for
indemnification or otherwise except for the notes set forth in Exhibit 6.10.

         6.11 LEASE OF PREMISES. Company shall have executed an amendment to the
existing  lease  or a new  lease  for the  Premises  under  the same  terms  and
conditions of the existing lease on the Premises;  provided,  however,  that any
such lease or  amendment  shall allow for its  termination  by Company  upon the
giving of twelve (12) months prior notice.

         6.12  CORPORATE  DOCUMENTS.  Parent shall have  received  copies of the
following documents:

<PAGE>

              (a) a  certificate  of the  President  of the  Company  dated  the
Closing Date and  certifying  (i) that  attached  thereto is a true and complete
copy of the Articles or Certificate of  Incorporation  and Bylaws of the Company
as in effect on the date of such  certification;  and (ii) that attached thereto
are true and complete copies of resolutions adopted by the Board of Directors of
the  Company  authorizing  the  execution,  delivery  and  performance  of  this
Agreement,  and that all such resolutions are still in full force and effect and
are all the resolutions adopted in connection with the transactions contemplated
by this Agreement; and

              (b) such  additional  supporting  documents and other  information
with  respect  to the  operations  and  affairs  of the  Company  as Parent  may
reasonably request.

         All such documents  described in (a) and (b) shall be  satisfactory  in
form and substance to Parent and its counsel.

         6.13 CORPORATE FILINGS. All relevant incorporation and merger documents
shall be filed with the appropriate  governmental  agencies in the form attached
hereto as Exhibit 6.13.

         6.14 NET WORTH. The Company shall have as of the Closing Date, as shown
on the Closing  Balance  Sheet, a Net Worth greater than or equal to Two Million
Dollars  ($2,000,000)  as  adjusted  for  deferred  taxes and other  adjustments
necessary as a result of  delivering  the Closing  Balance Sheet to Parent on an
accrual basis for a "C" corporation.  To enable all parties to determine the Net
Worth of the Company,  the Securityholder  shall cause the Closing Balance Sheet
to be delivered to the Parent at Closing.

     B. The  Securityholder's  and Company's obligation to consummate the Merger
under this  Agreement  shall be subject to  fulfillment  of all of the following
conditions on or prior to the Closing,  any of which may be waived in writing by
the Company and the Securityholder.

         6.15 PERFORMANCE OF AGREEMENTS. Parent and ACG shall have performed all
agreements  contained  herein and required to be performed by each of them prior
to or at the  Closing  and all of the  representations  and  warranties  made by
Parent and ACG in this  Agreement  shall be true and  correct as of the  Closing
Date.

         6.16  EMPLOYMENT  AGREEMENT.  ACG shall have  executed  the  Employment
Agreement, a copy of which is attached hereto as Exhibit 6.5(a).

<PAGE>

         6.17  REGISTRATION  RIGHTS  AGREEMENT.  Parent shall have  executed the
Registration  Rights  Agreement,  a copy of which is attached  hereto as Exhibit
6.9.

         6.18  EMPLOYEE  STOCK  OPTIONS.  Parent  shall  have  taken any and all
actions  necessary,  including  soliciting the approval of its shareholders,  if
necessary,  to  grant  One  Hundred  Thousand  (100,000)  stock  options  to the
employees and in the amounts designated in Exhibit 6.18.

         6.19 CORPORATE FILINGS. All relevant incorporation and merger documents
shall be filed with the appropriate  governmental  agencies in the form attached
hereto as Exhibit 6.19.

         6.20 RELEASE OF SECURITYHOLDER'S GUARANTY OF COMPANY DEBT. On or before
the Closing Date,  Parent and ACG shall  acknowledge  their obligation to obtain
the release of all of Securityholder's personal guaranties of the Company's debt
listed  on  Exhibit  6.20,  and  shall  provide   Securityholder   with  written
confirmation   of  such   release   from   the   Company's   creditors   holding
Securityholder's  guaranty  within  thirty (30) days of Closing.  Parent and ACG
shall use its best efforts to obtain Securityholder's  release from any guaranty
existing  prior to Closing but  inadvertently  omitted from inclusion on Exhibit
6.20.

                                    SECTION 7

                          TRANSACTIONS PRIOR TO CLOSING
                          -----------------------------

         Between  the date of this  Agreement  and the  Closing,  the  executive
officers and Board of Directors of the Company  shall retain full control of the
management  and  business  of the  Company.  To  enable  Parent to  prepare  for
settlement  at the Closing,  Parent,  Securityholder  and the Company agree that
between the date hereof and Closing:

         7.1 TAXES. The Company will promptly pay and discharge,  or cause to be
paid  and  discharged,  their  federal,  state  and  other  governmental  taxes,
assessments,  fees and  charges  imposed  upon it or on any of its  property  or
assets and timely file any returns and reports in connection with the foregoing;
provided,  however,  nothing herein shall require the Company to pay or cause to
be paid any tax, assessment, fee or charge so long as the validity thereof shall
be contested  in good faith by  appropriate  procedures  and the Company has set
aside on its books and maintains  adequate  reserves with respect thereto or for
which disclosure to Parent has been made pursuant to Exhibits 4.10(a) and (b).

<PAGE>

         7.2 BOOKS OF RECORD AND ACCOUNT;  INSPECTION. The Company will maintain
at all times proper  books of record and account in  accordance  with GAAP,  and
will permit any of Parent's officers or any of its authorized representatives or
accountants  to visit and inspect the offices  and  properties  of the  Company,
examine  the  Company's  books of account  and other  records,  and  discuss the
Company's affairs,  finances and accounts with Parent's appropriate officers and
managers, legal counsel,  accountants and auditors, all at normal business hours
and  as  often  as  Parent  may  request  provided  any  such  discussions  with
accountants  will not cause the Company to incur any material  cost with respect
to such accountants and legal counsel.

         7.3 FINANCIAL REPORTS.  The Company shall furnish to Parent,  within 20
days after the end of each  month (and  within 45 days after the end of the last
month of the  Company's  fiscal  year),  an  unaudited  financial  report of the
Company,  which report shall include profit and loss  statement,  a consolidated
balance sheet, a cash flow analysis,  and such other financial  information that
Parent may reasonably request.

         7.4 INSURANCE.

              (a) The  Company  will  maintain  in effect  liability  insurance,
property insurance, worker's compensation insurance, the life insurance policies
referenced  in Section  6.8 and  extended  coverage  insurance  on its  personal
property referenced in Section 4.15 above, with responsible insurance companies,
against  such risks as are  customarily  insured  against by similar  businesses
operating  in the  same  vicinity,  and in  amounts  not  less  than  those  (i)
recommended by major insurance companies for similar businesses or (ii) required
by  governmental  authorities  having  jurisdiction  over  all  or  part  of the
Company's operations.

         7.5  NOTIFICATION.  The Company  will,  within two (2)  business  days,
advise Parent in writing of the following:

              (a) The occurrence of an Event of Default;

              (b) The filing of any suit,  action,  other proceeding against the
Company or any  investigation  which the Company learns is pending or threatened
against it, if the amount  involved  or at risk by nature of such suit,  action,

<PAGE>

other  proceeding  or  investigation   exceeds   Twenty-Five   Thousand  Dollars
($25,000);

              (c) The filing,  recording or  assessment  of a federal,  state or
local tax lien  against  the  Company  or any of its  assets  other  than in the
ordinary course of business;

              (d) The  occurrence  of any  reportable  event with respect to any
employee  benefit plan of the Company or which is subject to the  provisions  of
ERISA,  including a statement  setting forth details as to the reportable  event
and the action proposed to be taken with respect thereto,  together with a copy,
if  available,  of the  notice of such  reportable  event  given to the  Pension
Benefit Guaranty Corporation; and

              (e) Any other  condition,  act or event  which the  Company in its
good faith judgment  believes will adversely  affect  Parent's rights under this
Agreement.

         7.6  CORPORATE  EXISTENCE.  The Company  shall at all times cause to be
done every act  necessary  to  maintain  and  preserve  its  existence,  rights,
franchises,  and certifications in the jurisdictions of their  incorporation and
to remain  qualified  as foreign  corporations  in every  jurisdiction  in which
qualification is required.

         7.7  MAINTENANCE OF PROPERTIES.  The Company shall maintain or cause to
be  maintained  in  good  repair,  working  order  and  condition  all  tangible
properties  required  for its business and from time to time make or cause to be
made all appropriate repairs and replacements thereof.

         7.8 TRADE  SECRETS.  The Company  will use its best efforts to maintain
the confidentiality of any Business Property Rights of the Company and will seek
to restrict the ability of any  employee  having  knowledge of such  proprietary
information or trade secrets from competing with the Company through  employment
and non-competition agreements and similar arrangements.

         7.9 MERGERS  AND OTHER  TRANSFERS.  The  Company  will not (i) merge or
consolidate with any person,  firm,  association or corporation,  (ii) transfer,
sell,  assign,  lease  or  otherwise  abandon  or  dispose  of  (whether  in one
transaction or a series of transactions)  any material part of its assets except
in the normal course of business if such transaction  would reduce the Net Worth
of the Company below  $2,000,000  (iii) change the nature of its business,  (iv)
create any  subsidiaries,  or (v) liquidate,  dissolve or cease active  business
operations.

<PAGE>

         7.10  CERTIFICATE  OF  INCORPORATION  AND BYLAWS.  The Company will not
amend its Articles or  Certificate of  Incorporation  or Bylaws if the result of
any such  amendment  will have an adverse  effect on Parent's  rights under this
Agreement.

         7.11 JUDGMENTS AND LIENS.  Neither the  Securityholder  nor the Company
shall  create,  incur,  assume or permit to exist any mortgage,  lien,  security
interest, charge or encumbrance on any property or assets now owned or hereafter
acquired by the Company except:

              (a) Liens  arising out of  judgments or awards (i) which have been
in force less than the  applicable  appeal  period so long as  execution  is not
levied  thereunder,  or (ii) in respect of which the Company shall in good faith
be prosecuting  an appeal or proceedings  for review and in respect of which the
Company shall have secured a subsisting stay of execution pending such appeal or
proceedings for review;

              (b)  Liens for  taxes,  assessments  or  governmental  charges  or
levies, provided payment thereof shall not at the time be required;

              (c)  Deposits,  liens,  bonds or  pledges  to  secure  payment  of
worker's  compensation,   unemployment  insurance,   pensions  or  other  social
obligations,  surety, stay or appeal bonds, or other similar obligations arising
in the ordinary course of business;

              (d) Mechanic's, worker's, repairmen's,  warehousemen's,  vendor's,
or carrier's  liens,  or other similar  liens arising in the ordinary  course of
business  and  securing  sums which are not past due,  or deposits or pledges to
obtain the release of any such liens;

              (e) Liens arising by operation of law under lease  agreements made
in the ordinary course of business and confined to the property rented;

              (f) Liens on  property  securing  the  purchase  price of property
acquired  after  the date  hereof  provided  that each of such lien (i) is given
solely to secure  indebtedness  not exceeding one hundred  percent (100%) of the
lesser of the cost or fair market value of such  property,  (ii) does not extend
to any  other  property  and  (iii) is given at the time of  acquisition  of the
property;

              (g) Presently outstanding liens; and

<PAGE>

              (h)  Extension,  renewal or refunding of  indebtedness  secured by
liens permitted by this Section 7.11,  provided that the then outstanding amount
of such  indebtedness  is not increased and such liens do not extend to property
not then encumbered thereby.

         7.12 ISSUANCES OF CAPITAL STOCK.  The Company will not issue any of its
capital  stock to any  person or entity or grant any person or entity an option,
warrant,  convertible  security or any other right or  agreement  to acquire any
shares of its capital stock, without the prior written consent of Parent.

         7.13 PURCHASE OF  SECURITIES  OR ASSETS.  The Company will not purchase
the  outstanding  equity  securities of any other person,  firm,  association or
corporation,  except  obligations  issued or  guaranteed  by the  United  States
government  or any state or political  subdivision  thereof or other  short-term
instruments  normally  marketed  by banks and  nationally  recognized  brokerage
firms,  provided  nothing  herein shall  restrict  the Company from  maintaining
accounts with federally insured banking institutions or money market funds.

         7.14 DECLARATION OF DIVIDENDS,  ETC. The Company will not (i) make, pay
or declare any  distributions  or dividends of cash or property  with respect to
its  issued  shares  of  Common  Stock;  (ii)  directly  or  indirectly  redeem,
repurchase or otherwise reacquire any shares of its Common Stock; (iii) increase
the salary or pay any bonuses to any management employees, officers or directors
of the Company,  if such action decreases the Net Worth of the Company below Two
Million Dollars  ($2,000,000) as adjusted for deferred taxes and other decreases
due to expenses made in the ordinary course of business.

         Except as set forth on Schedule 7.14, the Company is further prohibited
from declaring or distributing,  without the prior written approval of Parent in
its  sole   discretion,   any  executive  bonus  or  other  form  of  additional
compensation.

         7.15  PAYMENTS TO OFFICERS.  Except as described on Exhibit  7.15,  the
Company shall not loan or advance any amount to, or sell,  transfer or lease any
properties or assets (real, personal or mixed,  tangible or intangible),  to, or
enter into any agreement or arrangement  with, any of the Company's  officers or
directors,  except for compensation to officers pursuant to existing agreements,

<PAGE>

copies of which have been  delivered to Parent,  and  reimbursement  of expenses
incurred by employees of the Company in connection with their employment.

         7.16  INDEBTEDNESS.  The Company shall not incur any  indebtedness  for
borrowed money,  including pension fund loans, or purchase money indebtedness or
guarantee  any such  indebtedness  or issue or sell any debt  securities  of the
Company or guarantee in any manner (including,  without limitation,  by agreeing
to maintain the financial  condition of another  person) any debt  securities of
others,  provided,  however,  that the  Company  shall  have the  right to incur
indebtedness in the ordinary course of business for office furniture, equipment,
trade payables, machinery and vehicles.

         7.17 EXPENDITURES.  The Company shall not make any capital  investments
or  capital  expenditures  in excess of an  aggregate  of  Twenty-Five  Thousand
Dollars  ($25,000)  which are outside of the  ordinary  course of the  Company's
business, without the consent of Parent.

         7.18  EMPLOYEE  BENEFIT  PLANS.  The  Company  shall  not adopt any new
Employee Benefit Plans but may expand existing  benefits subject to the approval
of the Board of Directors.  Notwithstanding the foregoing, the Company may amend
its Employee  Benefit  Plans to the extent  necessary to comply with  applicable
law.

         7.19  MATERIAL  CONTRACTS.  Except as  described on Exhibit  7.19,  the
Company shall not enter into,  assume,  renew or permit to be renewed (including
by not  giving  a  permitted  notice  of  termination)  any  contract,  lease or
obligation  outside the  ordinary  course of business.  Except as expressly  set
forth therein, the Company shall not modify, amend, terminate,  waive or release
any  benefit or right  under any  employment  agreement,  or any other  material
agreement to which the Company is a party,  without the prior written consent of
Parent.

         7.20  NON-BUSINESS  ASSETS.  The Company  shall not apply any corporate
funds  toward the  payment of any  principal  or  interest  due or owing for the
purchase of any non-corporate assets.

<PAGE>

                                    SECTION 8

                            COVENANTS NOT TO COMPETE
                            ------------------------

         8.1 COVENANT NOT TO COMPETE. Except for owning up to five per cent (5%)
of the shares of a publicly-traded company or as otherwise authorized by ACG and
Parent or by the terms of this Agreement,  Securityholder shall not, directly or
indirectly,  alone or with  others,  enter  into  any  business  related  to the
construction,  reconstruction,  maintenance, repair and expansion of CATV, SMATV
systems and any other related systems in the telecommunications  industry within
the Southwestern Continental United States, or within Two Hundred (200) miles of
an existing project of the Company, and its subsidiaries,  for a period of three
(3) years from the date of Closing.  Further,  Securityholder  shall not, during
such period, disclose, divulge, communicate, use to the detriment of the Company
or Parent or for the benefit of any other person or persons,  or use in any way,
any confidential information or trade secrets of the Company, including customer
list, personnel information, and other similar data. In addition, Securityholder
shall not,  during such period,  (i) hire or attempt to hire any employee of the
Company,  and its  subsidiaries,  or (ii)  interfere  with any contract or other
relationship of the Company,  and its subsidiaries,  and any of its customers or
suppliers.  Securityholder  agrees that Parent  shall be entitled to  injunctive
relief in the event of any breach of the covenants  set forth in this  paragraph
together  with  reasonable  attorney's  fees and damages.  Damages shall only be
collectible from the party breaching this provision.

                                    SECTION 9

                                 INDEMNIFICATION
                                 ---------------

     A.  Securityholder  and  the  Company,  to the  extent  set  forth  in this
Agreement,   shall  indemnify  and  hold  harmless  Parent,  ACG  and  Surviving
Corporation  against and in respect to the following,  in addition to any losses
otherwise specifically indemnified against in this Agreement, as follows:

         9.1 INDEMNIFICATION BY THE SECURITYHOLDER AND THE COMPANY.

              (a)  BREACH.  Subject to the  provision  of this  Section  9.1 and
except as otherwise more specifically set forth herein,  the  Securityholder and
the  Company  (each  in  his  or  her  capacity  as an  indemnifying  party,  an
"Indemnifying  party") covenants and agrees to jointly and severally  indemnify,
defend,   protect,  and  hold  harmless  each  of  Parent,  ACG,  the  Surviving

<PAGE>

Corporation and each of their  respective  Subsidiaries  and Affiliates (each in
its capacity as an indemnified  party,  an  "Indemnitee")  at all times from and
after the date of this  Agreement  from and  against  all  Adverse  Consequences
incurred by such  Indemnitee as a result of or incident to (i) any breach of any
representation  or warranty of the  Company or the  Securityholder  set forth in
Section 4 of this Agreement,  (ii) any material breach or  nonfulfillment by the
Company or the  Securityholder  of, or any  noncompliance  by the Company or the
Securityholder with, any covenants, agreement, or obligation contained herein or
in any certificate or other document delivered in connection herewith,  or (iii)
all damage or deficiency  resulting directly from the material inaccuracy of any
list,   certificate   or  other   instrument   delivered  by  or  on  behalf  of
Securityholder  or the Company in  connection  herewith,  whether made as of the
date hereof, or as of the Closing Date hereunder or otherwise, or resulting from
the  non-fulfillment  of any  agreement  on the  part of  Securityholder  or the
Company  contained in this Agreement or made in connection with the transactions
contemplated hereby.

              (b) ENVIRONMENTAL INDEMNIFICATION.  The Company and Securityholder
jointly and severally, hereby indemnify each Indemnitee and hold each Indemnitee
harmless from and against any and all damages,  losses,  liabilities,  costs and
expenses of removal,  relocation,  elimination,  remediation or encapsulation of
any Hazardous  Materials,  obligations,  penalties,  fines,  impositions,  fees,
levies,  lien  removal  or bonding  costs,  claims,  actions,  causes of action,
injuries,  administrative  orders,  consent  agreements and orders,  litigation,
demands,  defenses,  judgments,  suits,  proceedings,  disbursements or expenses
(including  without  limitation,  attorney's  and experts'  reasonable  fees and
disbursements) of any kind and nature whatsoever resulting from the operation of
the Company's business as of the Closing Date: (i) which (x) is imposed upon, or
incurred by, Parent by reason of, relating to or arising out of the violation by
the Company prior to the Closing of any environmental laws, rules or regulations
of any governmental body or agency having jurisdiction over the Premises, or (y)
arises out of the discharge, dispersal, release, storage, treatment, generation,
disposal or escape of any Hazardous Materials, on or from the Premises as of the
Closing  Date,  or (z) arises out of the  failure  to detect  the  existence  of
Hazardous  Materials in the soil,  air,  surface  water or  groundwater,  or the
performance  or failure to perform  the  abatement  of any  Hazardous  Materials
source as of the Closing Date or the replacement or removal of any soil,  water,

<PAGE>

surface water, or groundwater  containing  Hazardous  Materials;  and/or (ii) is
imposed  upon,  or incurred by,  Parent by reason of or relating to any material
breach, act, omission or misrepresentation contained in Section 4.20.

              (c) TAX MATTERS.  Company and Securityholder jointly and severally
indemnify each Indemnitee from and against all Adverse Consequences  incurred by
any  Indemnitee  as a result of or incident  to any Income  Taxes or other Taxes
imposed on the Surviving Corporation,  the Company or any of its subsidiaries or
for which the  Surviving  Corporation,  Company or any of its  subsidiaries  may
otherwise be liable by law or regulation  (including,  without  limitation,  the
provisions of Treasury Regulation Section 1.1502-6) or contract, for any taxable
year or period  that  ends on or before  Closing.  This  indemnity  specifically
excludes  any taxes  that may be imposed  on any  indemnitee  as a result of the
disqualification  of this  transaction  as a tax free  reorganization  under the
Code.

              (d) BROKER FEE.  Each  Indemnifying  Party  jointly and  severally
indemnifies  each Indemnitee from any claim made by a broker,  finder,  agent or
other  intermediary  against the Company after  Closing in  connection  with the
negotiation  or  execution  of  this  Agreement  or  the   consummation  of  the
transactions contemplated hereby, except for those claims made against Parent or
ACG pursuant to Section 5.5, hereof.

              (e)  SET-OFF.  Except as  otherwise  provided  in this  Agreement,
Parent  shall be  entitled  to set-off  the  Securityholder's  or the  Company's
liability to Parent for indemnification under this Section 9, or under any other
paragraph of this Agreement, after any dispute regarding such liability has been
resolved by the parties or  otherwise,  by crediting  the amount of liability in
equal parts against the  consideration due to be paid pursuant to Section 2.2(d)
of  this   Agreement   by  reducing   the  amount  of  Arguss  Stock  issued  to
Securityholder  pursuant to Sections 2.2(d). In the event that Parent desires to
exercise  its rights  pursuant  to this  paragraph,  the Parent  must notify the
Securityholder  and  Company in writing  of its  intent to  exercise  its rights
pursuant to this Section  9.1(e),  setting forth the nature of the claim and the
amount  proposed to be set-off and any liability  alleged by the Parent which is
disputed in writing by the Securityholder shall remain unpaid until such dispute
has been resolved.  If Securityholder  does not dispute the liability alleged by
Parent, such amounts will be set-off without further notice.

<PAGE>

              (f)  COSTS AND  EXPENSES.  Except as  otherwise  provided  in this
Agreement,  all amounts indemnified pursuant to this Section 9 shall include all
costs and expenses of the Indemnitee,  including,  but not limited to, the costs
of any actions,  reasonable  attorneys  fees,  and other  expenses  necessary to
enforce the rights granted hereunder.

              (g) TERMINATION OF COMPANY'S  OBLIGATION.  Company's obligation to
indemnify Parent, or to contribute to any party indemnifying Parent, pursuant to
this Section 9 shall expire as of the Closing Date.

              (h) TERMINATION OF SECURITYHOLDER'S  OBLIGATION.  Securityholder's
obligation  to  indemnify  any  Indemnitee,   or  to  contribute  to  any  party
indemnifying  any Indemnitee,  pursuant to this Section 9, shall,  except in the
event of actual  fraud or  intentional  non-disclosure,  expire  three (3) years
after  the  Closing  Date,  except  as to those  involving  tax  matters,  which
obligation  shall  expire  upon the  earlier  to occur of six (6) years from the
Closing Date or the expiration of any applicable statute of limitations.

         9.2 LIMITS OF INDEMNIFICATION.  For the purposes of this Section 9, the
Indemnifying  Parties   Indemnification   shall  be  limited  to  those  Adverse
Consequences  which  exceed  in  the  aggregate  Twenty  Five  Thousand  Dollars
($25,000).

         9.3 NO CIRCULAR RECOVERY. Securityholder hereby agrees that he will not
make any claim for indemnification against either Parent or ACG by reason of the
fact that he was a director,  officer, employee agent or other representative of
the  Company  of any of its  Subsidiaries  (whether  such  claim is for  Adverse
Consequences  of any kind or otherwise and whether such claim is pursuant to any
statute,  charter, by-law,  contractual obligation or otherwise) with respect to
any claim for indemnification brought by Parent, the Surviving Corporation,  and
their respective Subsidiaries and Affiliates against the Securityholder.

                                   SECTION 10

                                   TERMINATION
                                   -----------

         10.1 TERMINATION BY PARENT. This Agreement may be terminated by Parent,
on or before the Closing Date, upon the occurrence of the following:

<PAGE>

              (a) If any of the material conditions specified in Section 6 shall
not have been met prior to the Closing Date.

              (b) If an  event  of  default,  as  defined  in  Section  11,  has
occurred, and has not been cured during any applicable cure period.

         10.2 TERMINATION BY SECURITYHOLDER. This Agreement may be terminated by
Securityholder,  on or before  the  Closing  Date,  upon the  occurrence  of the
following:

              (a) If any of the conditions specified in Section 5 shall not have
been met prior to the Closing Date.

              (b) If an event of default,  as defined in Section 11(a)(ii),  has
occurred and has not been cured during any applicable cure period.

              (c) If the Closing has not occurred by December 31, 1999.

                                   SECTION 11

                                     DEFAULT
                                     -------

         11.1 EVENTS OF DEFAULT.  It shall be  considered an Event of Default if
any one or more of the following events shall occur:

              (a) If  any  statement,  certificate,  report,  representation  or
warranty  of a  material  nature  made  or  furnished  by  (i)  the  Company  or
Securityholder to the Parent and ACG or by (ii) Parent and ACG to the Company or
Securityholder  under this Agreement shall prove to have been false or erroneous
in any material respect.

              (b) The  occurrence  of any event of  material  default  under any
other financing agreement, note, lease, mortgage, security agreement,  factoring
agreement or any other obligation of the Company the result of which will have a
material adverse effect on the Company unless any such event of default shall be
timely cured under any applicable cure provision or waived by the person to whom
or to which the Company is obligated or indebted.

         11.2 WAIVER BY PARTIES.  Any failure by any Party to insist upon strict
performance  by any  other  Party  to the  Agreement  of  any of the  terms  and
provisions of this  Agreement,  shall not be deemed to be a waiver of any of the
terms and conditions  hereof and the parties shall have the right  thereafter to

<PAGE>

insist  upon  strict  performance  thereof by any of the other  Parties,  unless
otherwise agreed to in writing by the parties hereto.

                                   SECTION 12

                                  MISCELLANEOUS
                                  -------------

         12.1 COSTS.  Except for  expenses  relating to the  preparation  of the
December 1999 Audit, which will be paid by Parent,  each party shall pay its own
expenses  incident to the transaction  contemplated  hereby,  including fees and
expenses of their attorneys, accountants,  appraisers or consultants, whether or
not  those   transactions   are   consummated   at   Closing,   subject  to  the
indemnification and termination provisions hereof.

         12.2 SALES AND TRANSFER  TAXES.  All state sales taxes and all transfer
taxes and all documentary  taxes, if any,  payable in connection with the Merger
shall be paid by the party to whom such taxes are customarily  attributed  under
the laws of the State of New Mexico.

         12.3  RELATIONSHIPS  TO OTHER  AGREEMENTS.  In the event of a  conflict
between any of the provisions of this Agreement and any other agreement relating
to  this  transaction  between  the  Securityholder,  Company  and  Parent,  the
provisions of this Agreement shall control.

         12.4 TITLES AND CAPTIONS.  All article or section titles or captions in
this  Agreement  are for  convenience  of  reference  and  are not  part of this
Agreement  and shall in no way define,  limit,  extend or describe  the scope or
intent of provisions herein.

         12.5 EXHIBITS. The Exhibits and Schedules referred to herein are hereby
made a part hereof.

         12.6  APPLICABLE  LAW.  This  Agreement  is  to  be  governed  by,  and
construed,  interpreted,  and enforced in accordance with the laws of New Mexico
applicable to agreements to be performed wholly within such state.

         12.7 BINDING EFFECT AND  ASSIGNMENT.  This  Agreement  shall be binding
upon and inure to the  benefit of the  successors  and  assigns of the  parties.
Notwithstanding  the  foregoing,  neither the Company nor Parent  shall have any
right to assign any of its rights or obligations  under this  Agreement  without
the prior written consent of the other parties hereto.

<PAGE>

         12.8 NOTICES. All notices, requests,  instructions,  or other documents
required  hereunder shall be deemed to have been given or made when delivered by
registered or certified mail,  return receipt  requested,  postage prepaid or by
messenger or overnight delivery service to:

If Company then:             U.S. Communications, Inc.
                             5030 Edith Blvd., NE
                             Albuquerque, NM 87107

Counsel for Company:         Aldridge, Grammar, Jeffrey & Hammar, P.A.
                             1212 Pennsylvania, NE
                             Albuquerque, NM 87110
                             Attn:   Kevin Hammar, Esq.

If T. Klein then:            Terry Klein
                             c/o U.S. Communications, Inc.
                             5030 Edith Blvd., NE
                             Albuquerque, NM 87107

Counsel for T. Klein:        Aldridge, Grammar, Jeffrey & Hammar, P.A.
                             1212 Pennsylvania, NE
                             Albuquerque, NM 87110
                             Attn:   Kevin Hammar, Esq.

If Parent then:              Arguss Holdings, Inc.
                             One Church Street, Suite 302
                             Rockville, Maryland 20850
                             Attn: Haywood Miller

Counsel for Parent:          Bleecker & Associates, P.C.
                             51 Monroe Street
                             Suite 1210
                             Rockville, Maryland  20850
                             Attn:  Steven S. Bleecker, Esq.

         Any party may from time to time  give the  others  written  notice of a
change in the address to which  notices are to be sent and of any  successors in
interest.

         12.9 SEVERABILITY. Inapplicability or unenforceability of any provision
of this  Agreement  shall not  impair the  operation  or  validity  of any other
provision   hereof.   If  any  provision  shall  be  declared   inapplicable  or
unenforceable,  there shall be added  automatically  as part of this Agreement a
provision as similar in terms to such inapplicable or unenforceable provision as
may be possible and be legal, valid and enforceable.

         12.10  ACCEPTANCE OR APPROVAL.  By accepting all or approving  anything
required  to be  observed,  performed,  or  fulfilled,  or to be given to Parent
pursuant to this  Agreement,  including,  but not  limited to, any  certificate,
balance  sheet,  statement of profit or loss or other  financial  statement,  or

<PAGE>

insurance  policy,  Parent shall not be deemed to have  accepted or approved the
sufficiency,  legality,  effectiveness  or legal  effect of the same,  or of any
term, provision, or condition thereof as to third parties.

         12.11 SURVIVAL. All covenants,  representations, and warranties made by
the  Securityholder  and Parent in this Agreement,  except in the case of actual
fraud or intentional  non-disclosure,  shall survive the Closing hereunder for a
period of three (3) years, except as to those involving tax matters, which shall
survive  the  closing  for  the  lesser  of a  period  of six (6)  years  or the
expiration of any applicable statute of limitations.

         12.12  ENTIRE  AGREEMENT.  This  Agreement,   including  all  Exhibits,
constitutes  the entire  agreement  among the parties  hereto  pertaining to the
subject matter hereof,  and supersedes all prior  agreements and  understandings
pertaining thereto. No covenant,  representation,  or condition not expressed in
this  Agreement  shall affect or be deemed to interpret,  change or restrict the
express provisions hereof and no amendments hereto shall be valid unless made in
writing and signed by all parties hereto.

         12.13  COUNTERPARTS.  This  Agreement  may be executed in any number of
counterparts, all of which together shall constitute one instrument.

         12.14  SECURITY  MATTERS.  (a)  By  executing  this  Agreement,  Parent
acknowledges  that: (i) Parent has been advised that the Stock has not been and
will not have  been  registered  under  the Act or the New  Mexico  or  Maryland
securities  laws or other  applicable  securities  laws of any  state,  that the
Securityholder  in  transferring  such shares to the Parent will be relying,  if
applicable,  upon the exemption from such registration requirements contained in
Section  4(1) or 4(2) of the Act as a  transaction  by a  person  other  than as
issuer, underwriter or dealer and the applicable state exemption; (ii) the Stock
may be  "restricted"  as  that  term is used  in  Rule  144  under  the Act as a
consequence  of which  Parent  may not be able to sell the  shares  unless  such
shares are first  registered  under the Act and any applicable  state securities
laws or unless  an  exemption  from such  registration,  is, in the  opinion  of
counsel,  available;  (iii) the Stock will be  acquired  by Parent for  purposes
other than  "distribution" as that term is used in Section 2(11) of the Act, and
(iv) Parent will execute,  if Securityholder so requests,  an appropriate letter
affirming  that its intention  with respect to the proposed  acquisition  of the

<PAGE>

Stock is that such  acquisition be for  investment  purposes only and not with a
view toward resale or distribution thereof.

              (b) The shares of Arguss Stock are not registered under the Act of
1933, and are being issued without  registration on the grounds that the sale of
Arguss  Stock  hereunder is exempt from  registration  under the Act pursuant to
Section 4(2) thereof and Parent's  reliance on such  exemption is  predicated on
Securityholder's representations set forth herein.

         This Agreement is made in reliance upon Securityholder's representation
to Parent  that the shares of Arguss  Stock to be issued  will be  acquired  for
investment and not with a view to the sale or  distribution of any part thereof,
and  that   Securityholder  has  no  present  intention  of  selling,   granting
participation in or otherwise distributing the same.

         Securityholder  hereby  represents that he is experienced in evaluating
and  investing  in  companies  such  as the  Parent,  have  such  knowledge  and
experience in financial and business  matters as to be capable of evaluating the
merits and risks of this  investment,  and have the ability to bear the economic
risks of this  investment.  Securityholder  further  represents  that during the
course of the  transaction  he has had the  opportunity to ask questions of, and
receive answers from, representatives of Parent concerning the Parent.

         Securityholder   hereby  agrees  that  the  Arguss  Stock  may  not  be
transferred without  registration under the Act or an exemption  therefrom,  and
that in the absence of an effective  Registration  Statement covering the Arguss
Stock,  or an available  exemption from  registration  under the Act, the Arguss
Stock  must be held  indefinitely.  In  particular,  and  without  limiting  the
foregoing,  Securityholder  is aware  that the  Arguss  Stock may be not be sold
pursuant to Rule 144  promulgated  under the Act unless all  conditions  of that
Rule are met.

         Securityholder  hereby  agrees that in no event will he transfer any of
the Arguss  Stock other than  pursuant to an  effective  Registration  Statement
under the Act, or pursuant to the  conditions  of any legend  appearing  on said
Arguss Stock.

         12.15  PREPARATION AND FILING OF SEC DOCUMENTS.  If and whenever,  as a
result  of the  transaction  contemplated  hereunder,  the  Parent  is  under an
obligation to provide financial  information to, or prepare a filing of any kind
with,   the  United  States   Securities   and  Exchange   Commission   ("SEC"),

<PAGE>

Securityholder  shall  assist  the Parent in  preparing  any  audited  financial
statements  required by the SEC for this purpose,  to the extent that it relates
to the business and affairs of the Company on and prior to the Closing Date. The
cost of preparing any such financial statements shall be borne by the Parent.

         12.16 PREPARATION AND FILING OF INCOME TAX RETURNS.  The Securityholder
shall  furnish to Parent  copies of the  federal,  state,  and local  income tax
returns of the Company for the period ending on the Closing  Date.  Parent shall
prepare and furnish all tax returns of the Company for the periods  ending after
the Closing Date and shall furnish copies to the Securityholder.  In addition to
the  rights  set  forth  in  Section  8-220  of  the  Delaware   Corporate  Law,
Securityholder  shall have the right,  in the event of an audit,  litigation  or
other  proceeding,  to examine such other  documentation  of the Company that is
reasonably required by such audit, litigation or other proceeding,

     IN WITNESS WHEREOF,  the parties hereto have executed this Agreement on the
day and year first above written.

ATTEST:                             ARGUSS HOLDINGS, INC.

____________________                By:  ______________________________

                                    Title:  ___________________________

<PAGE>

ATTEST:                             U.S. COMMUNICATIONS, INC.

____________________                By: _______________________________
                                          Terry Klein, President

WITNESS:

____________________                ___________________________________
                                    TERRY KLEIN

ATTEST:                             ARGUSS COMMUNICATIONS GROUP, INC.

____________________                By:  ______________________________

                                    Title:  ___________________________

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