Document:

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                                                                    Exhibit 10.1

                            STOCK PURCHASE AGREEMENT

                            SKE INTERNATIONAL L.L.C.
                                    ("BUYER")

                            MICHAEL BAKER CORPORATION
                                   ("SELLER")

                          BAKER SUPPORT SERVICES, INC.
                                   ("TARGET")

                                 APRIL 28, 2000

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1.   DEFINITIONS.

2.   PURCHASE AND SALE OF TARGET SHARES.

     (A) BASIC TRANSACTION.
     (B) ESCROW.
     (C) TOTAL CONSIDERATION AND TERMS.
     (D) NET PAYABLE ADJUSTMENT.
     (E) NONCOMPETE.
     (F) THE CLOSING.
     (G) DELIVERIES AT THE CLOSING.

3.   REPRESENTATIONS AND WARRANTIES OF BUYER AND SELLER.

     (A) REPRESENTATIONS AND WARRANTIES CONCERNING BUYER.
          (i)   Organization of Buyer.
          (ii)  Authorization of Transaction.
          (iii) Noncontravention.
          (iv)  Brokers' Fees.
          (v)   Ability to Consummate Transaction.
          (vi)  Investment Purpose Only.
     (B) REPRESENTATIONS AND WARRANTIES CONCERNING SELLER.
          (i)   Authorization of Transaction.
          (ii)  Noncontravention.
          (iii) Brokers' Fees.
          (iv)  Target Shares.

4.   REPRESENTATIONS AND WARRANTIES CONCERNING TARGET.

     (A) CORPORATE EXISTENCE AND CAPITALIZATION.
     (B) AUTHORIZATION OF TRANSACTION.
     (C) NONCONTRAVENTION.
     (D) TITLE TO ASSETS.
     (E) BOOKS AND RECORDS.
     (F) SUBSIDIARIES.
     (G) FINANCIAL STATEMENTS.
     (H) EVENTS SUBSEQUENT TO MOST RECENT FISCAL YEAR END.
     (I) UNDISCLOSED LIABILITIES.
     (J) LEGAL COMPLIANCE.
     (K) TAX MATTERS.
          (i)   Filing of Tax Returns.
          (ii)  Payment of Taxes.
          (iii) Audit, Investigations or Claims.
          (iv)  Lien.
          (v)   Security for Tax-Exempt Obligations.
          (vi)  Tax Exempt Use Property.
          (vii) Foreign Person.
          (viii)C Corporation.
          (ix)  Wage Withholding.
          (x)   No Backup Withholding.
          (xi)  Parachute Payments.
          (xii) Changes in Accounting Method.
     (L) REAL PROPERTY.
     (M) INTELLECTUAL PROPERTY.
     (N) CONTRACTS.
     (O) LICENSES, PERMITS AND AUTHORIZATIONS.
     (P) INSURANCE.
     (Q) LITIGATION.

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     (R) EMPLOYEES.
     (S) ENVIRONMENTAL MATTERS.
     (T) EMPLOYEE BENEFITS.
     (U) GUARANTIES.
     (V) GOVERNMENT CONTRACTS.
     (W) BROKERS' FEES.
     (X) AWARD FEE SCORES.
     (Y) DISCLOSURE.

5.   PRE-CLOSING COVENANTS

     (A) GENERAL.
     (B) HSR AND GOVERNMENTAL CONSENTS.
     (C) OPERATION OF BUSINESS.
     (D) FULL ACCESS.
     (E) CONFIDENTIALITY.
     (F) CONSENTS; REASONABLE EFFORT; COOPERATION.
     (G) NOTICE OF DEVELOPMENTS.
     (H) EXCLUSIVITY.
     (I) NO SOLICITATIONS.
     (J) EMPLOYEE MATTERS.

6.   POST-CLOSING COVENANTS

     (A) GENERAL.
     (B) LITIGATION SUPPORT.
     (C) BONDS.

7.   CONDITIONS TO OBLIGATION TO CLOSE.

     (A) CONDITIONS TO OBLIGATION OF BUYER.
     (B) CONDITIONS TO OBLIGATION OF SELLER.

8.   CONSENTS TO ASSIGNMENT OR NOVATION; RISK OF LOSS

     (A) CONSENTS.
     (B) RISK OF LOSS.

9.   SURVIVAL; INDEMNIFICATION

     (A) SURVIVAL.
     (B) INDEMNIFICATION PROVISIONS FOR BENEFIT OF BUYER.
     (C) INDEMNIFICATION PROVISIONS FOR BENEFIT OF SELLER.
     (D) MATTERS INVOLVING THIRD PARTIES.
     (E) DETERMINATION OF ADVERSE CONSEQUENCES.
     (F) INDEMNIFICATION DEDUCTIBLE.
     (G) INDEMNIFICATION LIMITATION.

10.  TAX MATTERS

     (A) TAX RETURNS.
     (B) TAX REFUNDS.
     (C) COOPERATION.
     (D) DOCUMENTATION.
     (E) INFORMATION.
     (F) TAXES AND FEES FOR THIS TRANSACTION.
     (G) LIABILITY FOR TAXES PRIOR TO CLOSING DATE.
     (H) CONTESTS.

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11.  TERMINATION

     (A) TERMINATION BY BUYER AND SELLER.
     (B) TERMINATION BY BUYER.
     (C) TERMINATION BY SELLER.
     (D) TERMINATION DATE.
     (E) TERMINATION OF RIGHTS AND DUTIES.
     (F) DISPOSITION OF EARNEST MONEY.

12.  BREACH OF AGREEMENT

     (A) BREACH AND OPPORTUNITY TO CURE.
     (B) BUYER'S REMEDY OF SPECIFIC PERFORMANCE.

13.  MISCELLANEOUS

     (A) PRESS RELEASES AND PUBLIC ANNOUNCEMENTS.
     (B) NO THIRD-PARTY BENEFICIARIES.
     (C) ENTIRE AGREEMENT.
     (D) FURTHER ASSURANCE.
     (E) SUCCESSION AND ASSIGNMENT.
     (F) COUNTERPARTS.
     (G) HEADINGS.
     (H) NOTICES.
     (I) GOVERNING LAW.
     (J) AMENDMENTS AND WAIVERS.
     (K) SEVERABILITY.
     (L) EXPENSES.
     (M) CONSTRUCTION.
     (N) INCORPORATION OF EXHIBITS, ANNEXES, AND SCHEDULES.
     (O) TIME OF ESSENCE.
     (P) NO OTHER REPRESENTATIONS.

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                            STOCK PURCHASE AGREEMENT

This Stock Purchase  Agreement (the "AGREEMENT") is entered into as of April 28,
2000,  by and among SKE  International  L.L.C.,  a  Delaware  limited  liability
company  ("BUYER"),   Michael  Baker  Corporation,  a  Pennsylvania  corporation
("SELLER"), and Baker Support Services, Inc., a Texas corporation ("TARGET," and
together with Buyer and Seller, the "PARTIES").

Seller in the  aggregate  owns all of the  outstanding  capital stock of Target.
Target is engaged in a business that consists primarily of providing operations,
maintenance  and support  services to agencies of the United  States  Government
pursuant to contracts with such agencies and subcontracts  under prime contracts
with such agencies (the "BUSINESS").

This Agreement  contemplates a transaction in which, on and subject to the terms
hereinafter set forth,  Buyer will purchase from Seller, and Seller will sell to
Buyer, all of the outstanding  capital stock of Target, as more specifically set
forth herein.

Now,  therefore,  in  consideration  of the  premises  and the mutual  promises,
representations, warranties, and covenants herein contained, and for other good
and  valuable  consideration,  the receipt and  sufficiency  of which are hereby
acknowledged, the Parties agree as follows.

1.   DEFINITIONS.
     -----------

Capitalized  terms used,  but not otherwise  defined,  herein have the following
meanings:

"ADVERSE  CONSEQUENCES"  means  all  actions,  suits,   proceedings,   hearings,
investigations,  charges, complaints,  claims, demands, injunctions,  judgments,
orders, decrees, rulings, actual damages, dues, penalties, fines, costs, amounts
paid in settlement,  liabilities,  obligations,  taxes, liens, losses, expenses,
and fees, including court costs and reasonable attorneys' fees and expenses.

"APPLICABLE RATE" means 6% per annum.

"AFFILIATE"  means,  as to any Person,  any  corporation,  partnership,  limited
liability  company or other entity which  controls,  is controlled  by, or under
common control with, such Person, and as to any Person which is a corporation or
limited liability  company,  any director,  managing member,  officer or greater
than 10% shareholder of such Person.

"ANCILLARY AGREEMENTS" mean the (i) Employment  Agreements,  the Trademark Usage
Agreement,  the  Noncompete  Agreement,  and the Escrow  Agreement  among Buyer,
Seller and a mutually  satisfactory  escrow agent, and (ii) the letter agreement
of even date  herewith  between the  guarantor  thereunder  and  Seller,  all in
connection with the transactions contemplated by this Agreement.

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"ASSETS" means all of Target's  right,  title and interest in and to properties,
assets and rights of any kind, whether tangible or intangible, real or personal,
owned by Target (the "ASSETS").

"BUSINESS" has the meaning set forth in the preface, above.

"BOOKS AND  RECORDS"  means (a) all records and lists  belonging  to or relating
exclusively  to  Target  and its  customers,  suppliers  or  personnel,  (b) all
product,  business and marketing  plans of Target,  and (c) all books,  ledgers,
files,  reports,  plans, drawings and operating records of every kind maintained
by Target and relating to Target.

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

"CLAIM"  means any  claim  for  indemnification  pursuant  to  Section 9 of this
Agreement.

"CLOSING" has the meaning set forth in Section 2(f) below.

"CLOSING DATE" has the meaning set forth in Section 2(f) below.

"CODE" means the Internal Revenue Code of 1986, as amended.

"CONFIDENTIAL  INFORMATION"  means  any  information  concerning  Target  or the
businesses  and affairs of Buyer,  or their  respective  Affiliates  that is not
already generally available to the public.

"CONTRACT"  means  any  written  agreement,  contract,  lease,  purchase  order,
memoranda of understanding or other binding contractual commitment of Target.

"DAVIS-BACON ACT" means the Davis-Bacon Act, as amended (40 U.S.C. Section 276a-
276a-7).

"DISCLOSURE SCHEDULE" has the meaning set forth in Section 3(b) below.

"EMPLOYEE  BENEFIT PLAN" means any (a)  nonqualified  deferred  compensation  or
retirement  plan or arrangement  which is an Employee  Pension Benefit Plan, (b)
qualified  defined  contribution  retirement  plan or  arrangement  which  is an
Employee Pension Benefit Plan, (c) qualified defined benefit  retirement plan or
arrangement   which  is  an  Employee   Pension   Benefit  Plan  (including  any
Multiemployer Plan), or (d) Employee Welfare Benefit Plan.

"EMPLOYEE PENSION BENEFIT PLAN" has the meaning set forth in ERISA Section 3(2).

"EMPLOYEE WELFARE BENEFIT PLAN" has the meaning set forth in ERISA
Section 3(l).

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"ENVIRONMENTAL  LAWS"  means  any and all  federal,  state,  local  and  foreign
statutes,   laws,  regulations,   ordinances,   judgments,   orders,  codes,  or
injunctions,  which impose liability for or standards of conduct  concerning the
manufacture,  processing,  generation,  distribution,  use, treatment,  storage,
disposal,  cleanup, transport or handling of Hazardous Substances including, The
Resource  Conservation and Recovery Act of 1976, as amended,  The  Comprehensive
Environmental  Response,  Compensation  and  Liability  Act of 1980,  as amended
("CERCLA"),  The Toxic  Substances  Control  Act, as amended,  the  Occupational
Safety  and  Health  Act of 1970,  as  amended,  to the extent it relates to the
handling of and exposure to hazardous or toxic materials or similar  substances,
and any other so-called "Superfund" or "Superlien" law.

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

"ESCROW AGREEMENT" means the escrow agreement among Buyer, Seller and a mutually
acceptable escrow agent, in the form to be agreed upon between Buyer and Seller,
relating  to the  holding  of  certain  proceeds  and the  disbursement  of such
proceeds, as set forth herein and therein.

"FIDUCIARY" has the meaning set forth in ERISA Section 3(21).

"FINANCIAL STATEMENTS" has the meaning set forth in Section 4(g) below.

"FIXTURES" means any fixtures,  machinery,  installations and building equipment
owned by Target and located at or on any Leased Real Property.

"GAAP" means United States generally accepted accounting principles as in effect
from time to time,  except to the extent  deviations  therefrom  are  applied in
making the Adjustments.

"GOVERNMENTAL   AUTHORITY"  means  any  Federal,   state,   municipal  or  local
government,   governmental  authority,   regulatory  or  administrative  agency,
governmental commission,  department, board, bureau, court, tribunal, arbitrator
or arbitral body.

"GOVERNMENT  CONTRACTS" means contracts or subcontracts  held by Target in which
the ultimate  contracting party is the United States government or any agency or
instrumentality thereof.

"GOVERNMENT-FURNISHED  PROPERTY" means all machinery,  equipment,  tools,  dies,
spare parts and all other  personal  property  and  fixtures  loaned,  bailed or
otherwise  furnished by the United States  Government to Target  pursuant to the
Government Contracts.

"HART-SCOTT-RODINO   ACT"  OR  "HSR"  means  the   Hart-Scott-Rodino   Antitrust
Improvements Act of 1976, as amended.

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"HAZARDOUS SUBSTANCE" means any hazardous or toxic substance or waste, pollutant
or contaminant  including  petroleum  products,  asbestos,  PCBs and radioactive
materials.

"INCOME TAX" means any federal,  state,  local, or foreign income tax, including
any interest, penalty, or addition thereto, whether disputed or not.

"INCOME TAX RETURN" means any return, declaration,  report, claim for refund, or
information return or statement relating to Income Taxes, including any schedule
or attachment thereto, and including any amendment thereof.

"INDEMNIFIED PARTY" has the meaning set forth in Section 9(d)(i) below.

"INDEMNIFYING PARTY" has the meaning set forth in Section 9(d)(i) below.

"INTELLECTUAL  PROPERTY"  means the  following,  to the  extent  related  to the
Business (a) all inventions  (whether  patentable or unpatentable and whether or
not reduced to practice),  all  improvements  thereto,  and all patents,  patent
applications,   and  patent   disclosures,   together   with  all   reissuances,
continuations, continuations-in-part,  revisions, extensions, and reexaminations
thereof, (b) all trademarks, service marks, trade dress, logos, trade names, and
corporate names, together with all translations,  adaptations,  derivations, and
combinations  thereof and including all goodwill associated  therewith,  and all
applications,  registrations,  and  renewals in  connection  therewith,  (c) all
copyrightable works, all copyrights,  and all applications,  registrations,  and
renewals  in  connection  therewith,  (d) all mask  works and all  applications,
registrations,  and renewals in connection therewith,  (e) all trade secrets and
confidential  business information  (including ideas,  research and development,
know-how,  formulas,  compositions,  manufacturing and production  processes and
techniques,  technical data,  designs,  drawings,  specifications,  customer and
supplier lists,  pricing and cost information,  and business and marketing plans
and  proposals),   (f)  all  computer  software   (including  data  and  related
documentation),  (g) all  other  proprietary  rights,  and (h)  all  copies  and
tangible  embodiments  thereof (in  whatever  form or  medium),  except that the
computer software referenced in (f) does not include software  applications used
by Target pursuant to a master license  agreement between the Seller and certain
software vendors.

"KNOWLEDGE"  means with respect to the Seller the actual knowledge of Richard L.
Shaw, H. James McKnight,  Craig O. Stuver,  Edward L. Wiley,  Glen Murphy,  Gary
Billions, and Robert Unger.

"LEASEHOLD IMPROVEMENTS" shall mean all leasehold improvements situated in or on
the Leased Real Property used and owned by Target.

"LOSS  CONTRACT"  means any  Contract for which Target has accrued a loss on its
financial  statements  or which  Target  reasonably  expects,  based on Seller's
Knowledge as of the date of this  Agreement and the Closing Date, to result in a
loss.

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"MATERIAL  ADVERSE  CHANGE"  means any change  relating  to the  Business or the
Assets which has a Material Adverse Effect.

"MATERIAL  ADVERSE  EFFECT"  means a material  adverse  effect on the  business,
financial condition,  operations, or results of operations of Target and, solely
with  respect  to the  debarment  and  suspension  issue  addressed  in  Section
4(v)(iii) of the Disclosure  Schedules and in Section 7(a)(ix) herein,  on Buyer
and its Affiliates.

"MOST RECENT  BALANCE SHEET" means the balance sheet  contained  within the Most
Recent Financial Statements.

"MOST  RECENT  FINANCIAL  STATEMENTS"  has the meaning set forth in Section 4(g)
below.

"MULTIEMPLOYER PLAN" has the meaning set forth in ERISA Section 3(37).

"PARTY" means Buyer, Seller and Target.

"PBGC" means the Pension Benefit Guaranty Corporation.

"PERSON" means an individual, a partnership,  a corporation (including a limited
liability corporation),  an association, a joint stock company, a trust, a joint
venture,  an  unincorporated  organization,  or a  governmental  entity  (or any
department, agency, or political subdivision thereof).

"PERSONAL PROPERTY" shall mean all of the personal property, whether tangible or
intangible, owned by Target.

"PRE-CLOSING  ENVIRONMENTAL  LIABILITIES" means, in connection with the Business
or  the  Real  Property,  any  written  notice,  claim,  demand,  action,  suit,
complaint,  proceeding  or  other  communication  by any  Person  or  Government
Authority alleging liability or potential  liability  (including but not limited
to liability for  investigatory  costs,  cleanup  costs,  governmental  response
costs, natural resource damages,  property damages,  personal injuries, fines or
penalties) arising out of, relating to, based on or resulting from circumstances
which,  as of the Closing  Date,  exist and form the basis of any  violation  or
alleged violation of any Environmental Laws, including the presence,  Release or
threatened Release of any Hazardous Substance.

"PURCHASE PRICE" has the meaning set forth in Section 2(c) below.

"REAL PROPERTY" means all real property owned,  leased,  operated or occupied by
Target as of the date of this Agreement,  except for the real property described
in  Section  4(l)  of the  Disclosure  Schedule,  together  with  all  Leasehold
Improvements or Fixtures located thereon.

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"RELEASE"  means  any  spill,  leak,  discharge,   disposal,  pumping,  pouring,
emitting,  emptying,  injecting,  abandoning,  leaching,  dumping or allowing to
escape of any Hazardous Substance.

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

"SECURITY INTEREST" means any mortgage,  pledge, lien,  encumbrance,  charge, or
other  security  interest,  other than  (a)(i)  mechanic's,  materialmen's,  and
similar  liens,  and (ii) other  statutory  liens,  which have been disclosed to
Buyer,  with  respect  to  amounts  not yet due and  payable  or which are being
contested in good faith through appropriate proceedings, (b) liens for taxes not
yet due and payable or for taxes that the taxpayer is  contesting  in good faith
through  appropriate  proceedings  which have been disclosed to Buyer, for which
adequate reserves are maintained and reflected on the Financial  Statements,  to
the extent  required by GAAP, (c) purchase money liens and liens securing rental
payments under capital lease  arrangements  which are reflected on the Financial
Statements, and (d) other encumbrances set forth in the Disclosure Schedules.

"SERVICE  CONTRACT  ACT" means the Service  Contract Act of 1965, as amended (41
U.S.C. Section 351, ET. SEQ.)

"SUBSIDIARY"  means any corporation,  partnership,  limited  liability  company,
joint venture or other entity in which  Target,  directly or  indirectly,  holds
more than fifty  percent  (50%) of the voting power of all equity  securities or
other ownership interests of such entity, or possesses,  directly or indirectly,
power to  direct or cause the  direction  of  management  or  policies  (whether
through ownership of voting securities or otherwise).

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

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

"TARGET  SHARE" means any share of the common stock,  par value $1.00 per share,
of Target.

"TAX" or "TAXES" means any federal, state, local or foreign net or gross income,
gross  receipts,  license,  payroll,   employment,   excise,  severance,  stamp,
occupation,  premium,  (including  taxes under Code Sec. 59A),  customs  duties,
capital stock, franchise,  profits,  withholding,  social security (or similar),
unemployment,   disability,   real  property,  personal  property,  sales,  use,
transfer,  registration,  value added, alternative or add-on minimum, estimated,
or  other  tax,  governmental  fee or like  assessment  or  charge  of any  kind
whatsoever,  together  with any  interest  and  penalties,  whether as a primary
obligor or as a result of being a  "transferor"  (within  the meaning of Section
6901 of the Code and any corresponding state and local law) of another person or
a member of an affiliated, consolidated or combined group.

<PAGE>

"TAX  RETURN"  means any  return,  declaration,  report,  claim for  refund,  or
information  return or statement  relating to Taxes,  including  any schedule or
attachment thereto, and including any amendment thereof.

"THIRD PARTY CLAIM" has the meaning set forth in Section 9(d) below.

2.   PURCHASE AND SALE OF TARGET SHARES.
     ----------------------------------

     (a)  BASIC TRANSACTION.
          -----------------

          On and subject to the terms and  conditions of this  Agreement,  Buyer
          agrees to purchase  from Seller,  and Seller  agrees to sell to Buyer,
          all of Seller's Target Shares, free and clear of all restrictions, for
          the consideration specified below in this Section 2.

     (b)  ESCROW.
          ------

          Not later  than May 10,  2000,  Buyer  shall  deposit  with a mutually
          satisfactory escrow agent pursuant to the Escrow Agreement in the form
          of Exhibit A hereto,  the sum of $500,000 (the "Escrow  Amount") which
          shall constitute earnest money. Such deposit shall be made pursuant to
          the terms of the Escrow Agreement.  If the Closing occurs,  the Escrow
          Amount  shall be  retained  in the  escrow  account to cover any post-
          Closing  Net  Payable  Adjustment  as  provided  in  Section  2(d) and
          distributed in accordance with the terms of the Escrow  Agreement.  If
          this Agreement is terminated prior to Closing,  then the Escrow Amount
          shall be distributed as provided in Section 11 of this Agreement.

     (c)  TOTAL CONSIDERATION AND TERMS.
          -----------------------------

          The aggregate consideration for Target Shares to be purchased by Buyer
          hereunder  (the "PURCHASE  PRICE")  shall,  subject to the Net Payable
          Adjustment  provided  below,   consist  of  Fourteen  Million  Dollars
          ($14,000,000 USD). It is understood that the net intercompany  payable
          by Target to Seller as of December 31, 1999,  was  $2,627,195.  At the
          Closing,  Buyer shall pay to Seller by wire  transfer  of  immediately
          available  funds to an account or  accounts  designated  in writing by
          Seller an amount equal to the Purchase Price, as adjusted  pursuant to
          Section  2(d)(i)  less the Escrow  Amount,  which shall be retained in
          Escrow in accordance with Section 2(b), above.

     (d)  NET PAYABLE ADJUSTMENT.
          ----------------------

          (i)  Seller shall cause to be prepared  and  delivered to Buyer on the
               Closing Date a  certificate  as to the  estimated  net payable by
               Target to Seller as of the Closing Date (the  "Estimated  Closing
               Date Net Payable").  The Estimated Closing Date Net Payable shall
               be compared to the December  31, 1999 Net Payable.  If the amount
               of the net intercompany payable has increased, the Purchase Price
               payable on the Closing Date shall increase dollar-for-dollar.  If
               the amount of the net  intercompany  payable has  decreased,  the
               Purchase  Price  payable  on  the  Closing  Date  shall  decrease
               dollar-for-dollar.

<PAGE>

          (ii) Buyer and Seller  shall  promptly  provide the other party hereto
               access to, and copies of, all information reasonably requested by
               the other party or its  representatives  in  connection  with the
               calculation  of the  Estimated  Closing  Date Net  Payable  or to
               permit the other  party to  investigate  the basis of any dispute
               therewith.

         (iii) Buyer  shall have a period of 30 days after the  Closing  Date to
               provide  Seller  with  notice   setting  forth  with   reasonable
               specificity  any  objection  to the  Estimated  Closing  Date Net
               Payable (an "Objection Notice").  Failure to provide an Objection
               Notice  within  such  30  day  period  shall  constitute  Buyer's
               approval of the Estimated  Closing Date Net Payable,  which shall
               then become final. If Buyer timely provides an Objection  Notice,
               Buyer and Seller shall promptly  commence good faith  discussions
               in an  attempt  to resolve  any  issues  raised in the  Objection
               Notice.  If Buyer and Seller are unable to resolve  such  dispute
               within 30 days  after  delivery  of the  Objection  Notice,  such
               dispute  shall be resolved by Arthur  Andersen  LLP or, if Arthur
               Andersen LLP is unwilling or unable to act in such  capacity,  by
               another accounting firm mutually  acceptable to Buyer and Seller.
               The  determination  of Arthur  Andersen LLP of the final  Closing
               Date Net Payable  shall be made within 30 days after  delivery to
               it of the Objection Notice and its  determination  shall be final
               and binding on the  parties.  Buyer and Seller shall each pay 50%
               of the fees and expenses of such accounting firm.

          (iv) Any decreases to the Purchase  Price  required as a result of the
               determination  of the final  Closing  Date Net  Payable  shall be
               promptly  reimbursed to Buyer out of the Escrow Amount or, if the
               Escrow  Agreement  has  already  been  terminated  and the  funds
               disbursed to Seller, paid promptly by Seller to Buyer.

          (v)  Any increases to the Purchase  Price  required as a result of the
               determination of the final Closing Date Net Payable shall be paid
               promptly to Seller by Buyer.

     (e)  NONCOMPETE.
          ----------

          At the  Closing,  Seller  shall  enter  into a  mutually  satisfactory
          noncompetition  agreement  with  Buyer in the form of Exhibit B hereto
          (the "NONCOMPETITION AGREEMENT").

     (f)  THE CLOSING.
          -----------

          Unless  agreed to otherwise in writing by the parties,  the closing of
          the transactions  contemplated by this Agreement (the "CLOSING") shall
          take  place at the  offices  of Cohen  Mohr LLP in  Washington,  D.C.,
          commencing  at  9:00  a.m.  local  time  on the  second  business  day
          following  the  satisfaction  or  waiver  of  all  conditions  to  the
          obligations of the Parties to consummate the transactions contemplated
          hereby (other than  conditions  with respect to actions the respective
          Parties  will take at the Closing  itself) or such other date as Buyer
          and Seller may mutually determine (the "CLOSING DATE").

<PAGE>

     (g)  DELIVERIES AT THE CLOSING.
          -------------------------

          At  the  Closing,  (i)  Seller  will  deliver  to  Buyer  the  various
          certificates,  instruments,  and documents referred to in Section 7(a)
          below,  (ii) Buyer will  deliver to Seller the  various  certificates,
          instruments,  and documents  referred to in Section 7(b) below,  (iii)
          Seller will deliver to Buyer stock  certificates  representing  all of
          Seller's  Target  Shares,  endorsed  in blank or  accompanied  by duly
          executed assignment  documents,  and (iv) Buyer will deliver to Seller
          the consideration specified in Section 2(c), above.

3.   REPRESENTATIONS AND WARRANTIES OF BUYER AND SELLER.
     --------------------------------------------------

     (a)  REPRESENTATIONS AND WARRANTIES CONCERNING BUYER.
          -----------------------------------------------

          Buyer represents and warrants to Seller that the statements  contained
          in this  Section  3(a) are correct and complete as of the date of this
          Agreement  and will be correct and complete as of the Closing Date (as
          though made then and as though the Closing Date were  substituted  for
          the date of this Agreement throughout this Section 3(a)).

          (i)  ORGANIZATION OF BUYER.
               ---------------------

               Buyer is a limited  liability  company  duly  organized,  validly
               existing,  and in good  standing  under  the laws of the State of
               Delaware.

          (ii) AUTHORIZATION OF TRANSACTION.
               ----------------------------

               Buyer has full  power and  authority  (including  full  corporate
               power and authority) to execute and deliver this Agreement and to
               perform its  respective  obligations  hereunder.  This  Agreement
               constitutes  the valid and legally  binding  obligation of Buyer,
               enforceable in accordance with its terms and  conditions,  except
               as the  enforceability  hereof  may be  affected  by  bankruptcy,
               insolvency,  fraudulent transfer, reorganization and similar laws
               affecting  the  rights of  creditors  generally,  and by  general
               principles of equity. Buyer need not give any notice to, make any
               filing with, or obtain any authorization, consent, or approval of
               any government or governmental  agency in order to consummate the
               transactions  contemplated  by  this  Agreement,  except  for the
               filing and approvals contemplated by Section 5(b) below.

<PAGE>

         (iii) NONCONTRAVENTION.
               ----------------

               Neither the execution and the delivery of this Agreement, nor the
               consummation  of  the  transactions   contemplated  hereby,  will
               violate any constitution,  statute, regulation, rule, injunction,
               judgment,  order, decree, ruling, charge, or other restriction of
               any government,  governmental  agency, or court to which Buyer is
               subject or any provision of its  certificate of  organization  or
               organization agreement.

          (iv) BROKERS' FEES.
               -------------

               Buyer  has  no  liability  or  obligation  to  pay  any  fees  or
               commissions to any broker,  finder,  or agent with respect to the
               transactions  contemplated  by this  Agreement  for which  Seller
               could become liable or obligated.

          (v)  ABILITY TO CONSUMMATE TRANSACTION.
               ---------------------------------

               Buyer  has  the   financial   capability   to  deliver  the  Cash
               Consideration  to Seller on the Closing Date  pursuant to Section
               2(c) hereof.

          (vi) INVESTMENT PURPOSE ONLY.
               -----------------------

               Buyer is  purchasing  the Target Shares for  investment  purposes
               only and not with a view towards resale.

     (b)  REPRESENTATIONS AND WARRANTIES CONCERNING SELLER.
          ------------------------------------------------

          Seller represents and warrants to Buyer that the statements  contained
          in this  Section  3(b) are correct and complete as of the date of this
          Agreement  and will be correct and complete as of the Closing Date (as
          though made then and as though the Closing Date were  substituted  for
          the date of this Agreement  throughout  this Section 3(b)),  except as
          set forth in the disclosure  schedules  delivered by Seller and Target
          to  Buyer  on the  date  hereof  and  initialed  by the  Parties  (the
          "DISCLOSURE SCHEDULES").  The Disclosure Schedules will be arranged in
          paragraphs  corresponding  to the  lettered  and  numbered  paragraphs
          contained in this Agreement.

          (i)  AUTHORIZATION OF TRANSACTION.
               ----------------------------

               Seller has the power and  authority  to execute and deliver  this
               Agreement  and  to  perform  its  obligations   hereunder.   This
               Agreement constitutes the valid and legally binding obligation of
               Seller,  enforceable  against Seller in accordance with its terms
               and  conditions,  except  as  the  enforceability  hereof  may be
               affected  by   bankruptcy,   insolvency,   fraudulent   transfer,
               reorganization,   and  similar  laws   affecting  the  rights  of
               creditors generally,  and by general principles of equity. Except
               as expressly set forth herein, Seller is not required to give any

<PAGE>

               notice to,  make any filing  with,  or obtain any  authorization,
               consent,  or approval of any government or governmental agency or
               any  other  Person  in  order  to  consummate  the   transactions
               contemplated  by  this  Agreement,  except  for  the  HSR  filing
               contemplated  by Section 5(b) and the approval of Seller's  Board
               of Directors contemplated in Section 7(b)(viii).

          (ii) NONCONTRAVENTION.
               ----------------

               Neither the execution and the delivery of this Agreement, nor the
               consummation  of  the  transactions   contemplated  hereby,  will
               violate any constitution,  statute, regulation, rule, injunction,
               judgment,  order, decree, ruling, charge, or other restriction of
               any government,  governmental agency, or court to which Seller is
               subject.

         (iii) BROKERS' FEES.
               -------------

               Seller  has no  liability  or  obligation  to  pay  any  fees  or
               commissions to any broker,  finder,  or agent with respect to the
               transactions contemplated by this Agreement for which Buyer could
               become liable or obligated.

          (iv) TARGET SHARES.
               -------------

               Seller holds of record and owns beneficially  1,000 shares of the
               common stock of Target, par value $1.00,  constituting all of the
               issued and outstanding  shares of Target,  which are owned,  free
               and  clear  of any  restrictions  on  transfer  (other  than  any
               restrictions under the Securities Act and state securities laws),
               taxes, Security Interests,  options,  warrants,  purchase rights,
               contracts, commitments, equities, claims, and demands, except for
               that certain  Security  Interest held by Mellon Bank,  N.A. which
               Mellon Bank will release  prior to the  Closing.  Seller is not a
               party to any option,  warrant,  purchase right, or other contract
               or  commitment  (other than this  Agreement)  that could  require
               Seller to sell,  transfer,  or  otherwise  dispose of any capital
               stock  of  Target.  Seller  is not a party to any  voting  trust,
               proxy,  or other agreement or  understanding  with respect to the
               voting of any capital stock of Target. Seller holds of record and
               owns beneficially all of the capital stock issued and outstanding
               by Target.

4.   REPRESENTATIONS AND WARRANTIES CONCERNING TARGET.
     ------------------------------------------------

     Seller  and Target  represent  and  warrant  to Buyer  that the  statements
     contained in this Section 4 are correct and complete as of the date of this
     Agreement  and will be correct  and  complete  as of the  Closing  Date (as
     though made then and as though the Closing  Date were  substituted  for the
     date of this Agreement  throughout  this Section 4), except as set forth in
     the Disclosure Schedules.

<PAGE>

     (a)  CORPORATE EXISTENCE AND CAPITALIZATION.
          --------------------------------------

          (i) Target is a corporation duly organized,  validly existing,  and in
          good  standing  under the laws of the  State of Texas.  Target is duly
          authorized to conduct business as a foreign corporation and is in good
          standing under the laws of each jurisdiction  where such qualification
          is  required,  except where the lack of such  qualification  would not
          have a  Material  Adverse  Effect.  Section  4(a)  of  the  Disclosure
          Schedule  contains  an  accurate  list of all  jurisdictions  in which
          Target is qualified to do business as a foreign corporation.

          (ii) The authorized  capital stock of Target  consists solely of 1,000
          shares of common stock,  par value $1.00 per share, of which all 1,000
          shares are issued and  outstanding.  There are no preferred  shares or
          classes of common shares.  All of the issued and outstanding shares of
          such common stock have been duly authorized, validly issued, are fully
          paid and nonassessable,  and are not subject to any preemptive rights.
          Seller holds of record and owns  beneficially  the number of shares of
          common  stock  set  forth  in  Section  3(b),  free  and  clear of all
          restrictions on transfer (other than restrictions under the Securities
          Act and state securities laws), taxes,  Security  Interests,  options,
          warrants,  purchase rights, contracts,  commitments,  equities, claims
          and demands, except for the Mellon Bank Security Interest.

          (iii)  Target  has not  issued or  granted  any  outstanding  options,
          warrants,  rights  or other  securities  or debt  convertible  into or
          exchangeable or exercisable for shares of the capital stock of Target,
          any other  commitments  or  agreements  providing  for the issuance of
          additional shares of the capital stock of Target, the sale of treasury
          shares,  or for the  repurchase  or  redemption  of shares of Target's
          capital stock, or any obligations  arising from canceled stock.  There
          are no  agreements  of any kind  which may  obligate  Target to issue,
          purchase,  register for sale,  redeem or otherwise  acquire any of its
          securities or interests.  There are no outstanding or authorized stock
          appreciation, phantom stock or similar rights with respect to Target.

          (iv) There are no voting trusts,  shareholder  agreements,  proxies or
          other  agreements  in effect with respect to the voting or transfer of
          Target  Shares  except for the  proxies  that may be in place  under a
          certain proxy agreement with the U.S. Department of Defense into which
          Target and Buyer may enter.

<PAGE>

     (b)  AUTHORIZATION OF TRANSACTION.
          ----------------------------

          Target has all requisite  corporate  power and authority to own, lease
          and operate the properties  owned by it, to conduct its business as it
          is presently  being  conducted,  to execute and deliver this Agreement
          and to perform its obligations hereunder. This Agreement has been duly
          executed and delivered by Target.

     (c)  NONCONTRAVENTION.
          ----------------

          Except  as set  forth  in  Section  4(c) of the  Disclosure  Schedule,
          neither the execution and the delivery of this Agreement by Seller and
          Target, nor the consummation of the transactions  contemplated hereby,
          will  (i)  violate  any  constitution,   statute,   regulation,  rule,
          injunction,   judgment,   order,  decree,  ruling,  charge,  or  other
          restriction of any government,  governmental agency, or court to which
          Target or any of the Assets is subject or any provision of the charter
          or bylaws of Target or (ii) conflict with, result in a material breach
          of, constitute a default under,  result in the acceleration of, create
          in any party the right to accelerate, terminate, modify, or cancel, or
          require any notice under any material (whether  individually or in the
          aggregate) Contract to which Target is a party or by which it is bound
          or to which any of the Assets is subject (or result in the  imposition
          of any Security Interest upon any of the Assets),  except where, prior
          to  or  simultaneously  with  the  Closing,  such  Contract  is  being
          terminated  or the consent of the other party  thereto  will have been
          obtained (including the release of the Mellon Bank Security Interest).

          Except for the filings contemplated by Section 5(b) below, Target does
          not need to give any notice to,  make any filing  with,  or obtain any
          authorization,  consent, or approval of any government or governmental
          agency  in  order  for the  Parties  to  consummate  the  transactions
          contemplated  by this  Agreement,  except  where the  failure  to give
          notice, file, or obtain any authorization,  consent, or approval would
          not have a Material Adverse Effect.

     (d)  TITLE TO ASSETS.
          ---------------

          Except as set forth in Section 4(d) of the Disclosure Schedule, Target
          has good  title  to,  or a valid  leasehold  interest  in,  or,  as to
          Intellectual Property,  valid license of, the property and assets used
          by it, or shown on the Most Recent Balance Sheet or acquired after the
          date thereof, free and clear of any Security Interests, other than the
          Mellon Bank Security Interest.

     (e)  BOOKS AND RECORDS.
          -----------------

          Target has made and kept (and given Buyer access to) Books and Records
          and accounts,  which,  in  reasonable  detail,  accurately  and fairly
          reflect in all material  respects,  Target. The minute books of Target
          which Buyer has been provided the opportunity to review, including all
          the  regular  and  special  meetings  of the  board of  directors  and
          shareholders of Target (including all resolutions adopted thereat) and
          are complete and accurate in all material respects.

<PAGE>

     (f)  SUBSIDIARIES.
          ------------

          Target has no  Subsidiaries,  except as set forth in Section  4(f) the
          Disclosure Schedule attached hereto.

     (g)  FINANCIAL STATEMENTS.
          --------------------

          Attached hereto as Exhibit C are the following  financial  statements:
          unaudited balance sheets, income statements,  statements of changes in
          stockholders'  equity and  statements  of cash flows of Target for the
          fiscal years ended  December 31, 1999,  1998 and 1997 (the  "UNAUDITED
          FINANCIAL STATEMENTS").  Adjustments for purposes of this Section 4(g)
          means normal and  consistently  applied  year-end  adjustments made to
          Target's  financial  statements for the years ended December 31, 1999,
          1998 and 1997.

          Prior to the  Closing,  Seller  and Target  will  deliver to Buyer the
          audited  balance  sheet,  income  statement,  statement  of changes in
          stockholders'  equity  and  statement  of cash flows of Target for the
          fiscal  year  ended   December  31,  1999  (the   "AUDITED   FINANCIAL
          STATEMENTS")  and  unaudited  financial   statements  for  the  period
          beginning  on  January 1, 2000 and ending on the last day of the month
          immediately  preceding the month of the Closing Date (the "MOST RECENT
          FINANCIAL STATEMENTS").

          The Unaudited Financial  Statements present, and the Audited Financial
          Statements  and the Most Recent  Financial  Statements  when delivered
          will present,  fairly and accurately,  in all material  respects,  the
          financial  condition  of Target as of such  dates and the  results  of
          operations  of  Target  for  such  periods.  The  Unaudited  Financial
          Statements have been prepared,  and the Audited  Financial  Statements
          will be prepared,  in accordance with a "modified GAAP format" as more
          fully described in the PricewaterhouseCoopers engagement letter, dated
          March 29,  2000,  and applied on a  consistent  basis  throughout  the
          periods covered thereby.

          The Most Recent Financial  Statements  described above will be subject
          to  normal   year-end   adjustments   (which   will  not  be  material
          individually  or in the  aggregate),  will  lack  footnotes  and other
          presentation items and will be prepared in accordance with a "modified
          GAAP format".

     (h)  EVENTS SUBSEQUENT TO MOST RECENT FISCAL YEAR END.
          -------------------------------------------------

          Since the Most Recent Fiscal Year End, there has not been any Material
          Adverse  Change  in  Target.   Specifically,   without   limiting  the
          generality  of the  foregoing,  since the Most Recent Fiscal Year End,
          except  as  contemplated  in this  Agreement  or as set  forth  in the
          Disclosure Schedules, there has not been any:

<PAGE>

          (i) change in accounting methods,  principles, or practices by Target,
          except  as  required  by  law  or  by  generally   applicable  changes
          instituted in the accounting profession;

          (ii) material  damage,  destruction or loss (whether or not covered by
          insurance) adversely affecting the tangible Assets or the Business;

          (iii)  cancellation of any material  indebtedness or waiver or release
          of any material right or claim of Target;

          (iv) increase in the rate of compensation payable or to become payable
          to, any bonus,  incentive  compensation,  service  award or other like
          benefit granted, made or accrued, contingently or otherwise, for or to
          the credit  of, any  director,  officer or other  employee,  except as
          provided in any employment  agreement  (including any union  contract)
          between  Target and any such  persons  or in any  employee  plan,  and
          except for any increases in the normal course of business;

          (v)  addition  to or  modification  of  the  Employee  Benefit  Plans,
          arrangements  or  practices  affecting  the  officers,  directors,  or
          employees of Target other than (A)  contributions  made in  accordance
          with the normal practices of Target,  (B) the extension of coverage to
          such  persons who became  eligible  after the Most Recent  Fiscal Year
          End, or (C) as set forth in the Employee Policy and Procedure  Manual,
          as provided to Buyer prior to the date hereof,

          (vi)  cancellation  or termination  of any material  Contract or entry
          into any Contract which is not in the ordinary  course of the business
          of Target;

          (vii) sale,  assignment  or transfer  of any  material  portion of the
          Assets,  other  than in the  ordinary  course of  business,  except as
          approved in writing in advance by Buyer;

          (viii)  capital  expenditure  or the  execution  of any  lease  or any
          incurring of liability therefor by Target involving payments in excess
          of $50,000  or  $200,000  in the  aggregate  with  respect to any such
          expenditure or lease or otherwise not substantially in accordance with
          Target's past practice;

          (ix) any  indebtedness  incurred by Target for  borrowed  money or any
          commitment to borrow money  entered into by Target,  or any loans made
          or agreed to be made by Target except for indebtedness incurred in the
          ordinary course of business as part of Target's inventory financing or
          under the existing working capital line of credit;

          (x)  revaluation  by Target of any of the  Assets,  including  without
          limitation  writing  off notes,  or writing  off  accounts  receivable
          except with respect to accounts receivable written off in the ordinary
          course of business;

<PAGE>

          (xi)  payment or  declaration  of any  dividends,  distributions  with
          respect  to  any  of  Target  Shares,  or  redemption,  repurchase  or
          acquisition by Target of any of Target Shares;

          (xii) since  December 31, 1999,  Seller and Target have not changed or
          modified their policies, practices or procedures relative to recording
          credits or charges to their  intercompany  receivables  and  payables.
          Moreover,  since December 31, 1999, Seller and Target have not changed
          or  modified   their  pricing  for   intercompany   services  and  any
          intercompany  sales  of  assets  or  the  assumption  of  intercompany
          liabilities; or

          (xiii) agreement by Target or Seller to do any of the things described
          in the preceding  clauses (i) through  (xii),  other than as expressly
          provided herein.

     (i)  UNDISCLOSED LIABILITIES.
          -----------------------

          Target does not have any liability  (whether  absolute or  contingent,
          whether accrued or unaccrued, whether liquidated or unliquidated,  and
          whether due or to become due,  excluding  any  liability for Taxes) in
          excess of $250,000,  except for (i)  liabilities set forth on the Most
          Recent  Financial  Statements  (or in any  notes  to the  Most  Recent
          Financial  Statements),  (ii) liabilities  which have arisen after the
          Most Recent Fiscal Month End in the ordinary course of business, (iii)
          liabilities or obligations  under the Contracts,  and (iv) liabilities
          relating to matters which are the subject of the other representations
          and warranties concerning Target set forth in this Agreement.

     (j)  LEGAL COMPLIANCE.
          ----------------

          Target has complied in its  operations  in all material  respects with
          all  applicable  statutes  and  governmental  rules,  regulations  and
          Permits,  except where the failure to comply would not have a Material
          Adverse Effect. No action, suit, proceeding, hearing, or, to Seller's
          Knowledge, investigation,  charge, complaint, or written claim, demand
          or notice in excess of $100,000  has been filed or  commenced  against
          Target  alleging  any failure so to comply,  nor, to the  Knowledge of
          Seller,  are any such  actions  threatened,  except as  identified  in
          Section 4(j) of the Disclosure Schedule.

     (k)  TAX MATTERS.
          -----------

          (i)  FILING OF TAX RETURNS.
               ---------------------

               Target has timely filed with the appropriate  taxing  authorities
               all returns (including without limitation information returns and
               other  material  information)  in respect of Taxes required to be

<PAGE>

               filed  through  the date  hereof  and will  timely  file any such
               returns  required to be filed on or prior to the Closing Date, in
               each case, subject to any applicable extensions.  The returns and
               other information filed are complete and accurate in all material
               respects.

          (ii) PAYMENT OF TAXES.
               ----------------

               All Taxes  that  accrue or are  payable  by Target in  respect of
               taxable  periods  that end on or before the Closing  Date and for
               any taxable  periods  that begin  before the Closing Date and end
               thereafter  to the  extent  such  Taxes are  attributable  to the
               portion of such period  ending on the Closing  Date (such  period
               being referred to herein as a "PRE-CLOSING  PARTIAL PERIOD"),  as
               determined  under the closing of the books method of  allocation,
               have (or will have,  on or before the  Closing  Date) been timely
               paid, or an adequate  reserve has been established  therefor,  as
               set forth in Section  4(k) of the  Disclosure  Schedule or in the
               Financial  Statements.   The  net  intercompany  account  balance
               includes the reserves for such Taxes. Target has no liability for
               Taxes  in  excess  of  the   amounts  so  paid  or   reserves  so
               established.

         (iii) AUDIT, INVESTIGATIONS OR CLAIMS.
               -------------------------------

               Except as set forth in Section 4(k) of the  Disclosure  Schedule,
               there are no  pending or  threatened  audits,  investigations  or
               claims for or relating to any additional Tax liability, and there
               are no matters under discussion with any governmental authorities
               with  respect  to Taxes  that is likely  to result in a  material
               additional  liability of Target for Taxes. Except as set forth in
               such  Section,  neither  Target nor Seller has been notified that
               any taxing  authority  intends  to audit a Target  return for any
               period.

          (iv) LIEN.
               ----

               There are no liens for Taxes  (other than for  current  Taxes not
               yet due and payable) on the Assets.

          (v)  SECURITY FOR TAX-EXEMPT OBLIGATIONS.
               -----------------------------------

               None of the Assets  directly or  indirectly  secures any debt the
               interest on which is tax-exempt under Section 103(a) of the Code.

          (vi) TAX EXEMPT USE PROPERTY.
               -----------------------

               None of the  Assets  is "tax  exempt  use  property"  within  the
               meaning of Section 168(h) of the Code.

         (vii) FOREIGN PERSON.
               --------------

               Neither Target nor Seller, is a person other than a United States
               person within the meaning of the Code.

<PAGE>

        (viii) C CORPORATION.
               -------------

               Target is a C Corporation  and has been a C Corporation  for each
               taxable year since 1987.

          (ix) WAGE WITHHOLDINg.
               ---------------

               Target has  withheld  all  material  Taxes  required to have been
               withheld  in  connection  with  amounts  paid  or  owing  to  any
               employee, independent contractor, creditor, stockholder, or other
               third party,  and such withheld  Taxes have either been duly paid
               to the proper  governmental  authority  or properly  set aside in
               accounts for such purpose.

          (x)  NO BACKUP WITHHOLDING.
               ---------------------

               The transaction  contemplated herein is not subject to the backup
               withholding  provisions  of  Section  3406  of  the  Code,  or of
               Subchapter  A of Chapter 3 of the Code or of any other  provision
               of law.

          (xi) PARACHUTE PAYMENTS.
               ------------------

               Target has not made any payments, nor is Target obligated to make
               any  payments,  and is not a party to any  agreement  that  could
               obligate  it to make any  payments  that  will not be  deductible
               under Section 280G of the Code.

         (xii) CHANGES IN ACCOUNTING METHOD.
               ----------------------------

               Except as set forth in Section 4(k) of the  Disclosure  Schedule,
               Target  has  not  agreed  to  nor  is it  required  to  make  any
               adjustment  pursuant to Section 481(a) of the Code by reason of a
               change in accounting  method initiated by Target,  and Seller has
               no Knowledge  that the IRS has proposed  any such  adjustment  or
               change in accounting method.

     (l)  REAL PROPERTY.
          -------------

          (i) Target does not own any real property.

          (ii) Section  4(l)(ii) of the Disclosure  Schedule lists and describes
          briefly all real property leased or subleased to Target for use in the
          Business (the "LEASED REAL  PROPERTY").  Target has made  available to

<PAGE>

          Buyer correct and complete  copies of the leases and subleases  listed
          in Section  4(l)(ii) of the Disclosure  Schedule (as amended to date).
          With respect to each lease and sublease listed in Section  4(l)(ii) of
          the  Disclosure  Schedule which relates to more than 2,000 square feet
          of net rentable  area (a "MATERIAL  LEASE"),  the lease or sublease is
          legal,  valid,  binding,  enforceable,  and in full force and  effect.
          Target has not assigned,  transferred,  conveyed, mortgaged, deeded in
          trust,   or  encumbered   any  interest  in  any  such   leasehold  or
          subleasehold. Target enjoys peaceful and undisturbed possession of all
          Leased  Real  Property,  and  Target  has  fulfilled  in all  material
          respects  all the  obligations  required to be performed by it through
          the date hereof with respect to such  Material  Leases.  Each Material
          Lease is transferable (upon receipt of necessary landlord consents) in
          connection with the transactions contemplated hereby.

          (iii)  Except  as set forth in  Section  4(l)(iii)  of the  Disclosure
          Schedule,  Target has  received  all  required  material  approvals of
          governmental  authorities (including Permits and material certificates
          of  occupancy  or  other  similar   certificates   permitting   lawful
          occupancy)  required in  connection  with the present use of the space
          covered by the Material Leases.

          (iv) Target has not received notice of any special assessment relating
          to any Real Property for which Target would be liable under any of the
          Real Property Leases.

     (m)  INTELLECTUAL PROPERTY.
          ---------------------

          To the  Knowledge  of the  Seller,  Target  has not  interfered  with,
          infringed upon, misappropriated, or violated any Intellectual Property
          rights of third  parties in any material  respect,  and Target has not
          received,  within  the last two years (or,  with  respect to the Baker
          Support  Services  mark,  five years) any written  charge,  complaint,
          claim, demand, or notice alleging any such interference, infringement,
          misappropriation,  or violation.  To the Knowledge of Seller, no third
          party  has  interfered  with,  infringed  upon,  misappropriated,   or
          violated  any  Material   Intellectual   Property   rights  of  Target
          constituting part of the Assets.

          (i) Section 4(m)(i) of the Disclosure  Schedule identifies those items
          of Intellectual Property owned by Target and used in the Business, the
          loss of which could  reasonably be expected to have a Material Adverse
          Effect  ("MATERIAL  INTELLECTUAL   PROPERTY"),   and  identifies  each
          license,  agreement,  or other  permission which Target has granted to
          any  third  party  with  respect  to any  such  Material  Intellectual
          Property  (together  with any  exceptions).  Copies  of all  documents
          relating to Material Intellectual Property have been made available to
          Buyer. With respect to each item of Intellectual  Property required to
          be identified in Section 4(m)(i) of the Disclosure Schedule:

<PAGE>

               (A)  the  item  is  not  subject  to  any   adverse   outstanding
               injunction, judgment, order, decree, ruling, or charge, and

               (B) no action, suit, proceeding, hearing, investigation,  charge,
               complaint, claim, or demand is pending or, to Seller's Knowledge
               threatened    which    challenges    the   legality,    validity,
               enforceability, use, or ownership of the item.

          (ii)  Section  4(m)(ii) of the  Disclosure  Schedule  identifies  each
          material item of  Intellectual  Property that any third party owns and
          that Target  uses in the  Business  pursuant  to license,  sublicense,
          agreement, or permission ("MATERIAL NON-OWNED INTELLECTUAL PROPERTY").
          Copies of all documents of Material  Non-Owned  Intellectual  Property
          have  been  made  available  to Buyer.  With  respect  to each item of
          Intellectual Property required to be identified in Section 4(m)(ii) of
          the Disclosure Schedule:

               (A) the license,  sublicense,  agreement,  or permission covering
               the item is legal, valid, binding, enforceable, and in full force
               and effect, provided,  however, that no representation is made as
               to the ownership of any Material Non-Owned  Intellectual Property
               or as to the right of Target's  licensor,  sublicensor or grantor
               to grant any such license, sublicense, agreement or permission,

               (B) neither  Target nor, to the  Knowledge  of Seller,  any other
               party to the license, sublicense,  agreement, or permission is in
               breach or default which would permit  termination,  modification,
               or acceleration thereunder, and

               (C) Target has not granted any  sublicense  or similar right with
               respect to the license, sublicense, agreement, or permission.

          (iii) With  respect to each  software  license or software  sublicense
          identified in Sections 4(m)(i) and 4(m)(ii) above to which Seller is a
          party,  Seller has not granted any  sublicense or similar right except
          in accordance  with the terms and  conditions  thereof,  including the
          payment of all applicable royalties,  and is not otherwise in material
          violation of such license or sublicense agreement.

     (n)  CONTRACTS.
          ---------

          (i)  Buyer  has been  given the  opportunity  to review  copies of all
          currently effective Contracts (other than the BAIT Contract,  which is
          classified)  described in clauses (A) through (L) to which Target is a
          party (the "MATERIAL CONTRACTS"), which copies are true and correct in
          all  material   respects,   subject  to  ordinary  course  extensions,
          renewals, and similar changes. Section 4(n) of the Disclosure Schedule
          lists:

               (A)  each  lease,   rental  or  occupancy   agreement,   license,
               installment  and conditional  sale agreement,  and other Contract
               affecting the ownership of,  leasing of, title to, use of, or any
               leasehold or other  interest  in, any real or personal  property,
               providing for payments in excess of $100,000 per annum;

<PAGE>

               (B) any  Contract (or group of related  Contracts)  (other than a
               Government Contract) for the furnishing or receipt of services or
               delivery of goods and/or materials, the performance of which will
               extend over a period of more than one year after the date of this
               Agreement  or  under  which  Target  paid or  received  aggregate
               consideration  in excess of $400,000  during the year ended 1999,
               or reasonably expects based upon the operation of the Business as
               of the date hereof to pay or receive  aggregate  consideration in
               excess of $400,000 during the year ending 2000;

               (C) any Government Contract and all amendments,  supplements, and
               modifications thereto;

               (D) any  Contract in excess of $300,000  creating or  governing a
               partnership,  limited  liability  company,  joint  venture or any
               teaming agreement or other Contract (however named) which teaming
               agreement  or other  Contract  involved  a  sharing  of  profits,
               losses, costs, or liabilities by Target with any other Person;

               (E) any note,  debenture,  guarantee,  loan,  letter  of  credit,
               surety bond or other  agreement,  instrument  or  commitment  (or
               group of  related  agreements)  in effect as of the date  hereof,
               under which Target has created, incurred,  assumed, or guaranteed
               any indebtedness  for borrowed money,  including any agreement or
               commitment   for  future  loans,   credit  or  financing  or  any
               capitalized  lease  obligation,  in excess of  $300,000  or under
               which  Target  has  imposed  a  Security  Interest  on any of the
               material Assets, tangible or intangible;

               (F) any agreement  (other than a teaming  agreement)  imposing on
               Target a restriction or obligation regarding noncompetition;

               (G) any Contract  involving an  obligation  of Target to make any
               payment to any  Affiliate of Target,  Seller,  or any of Target's
               directors, officers or employees (not including salary or similar
               compensation reflected on Target's payroll records);

               (H) any profit  sharing,  stock  option,  stock  purchase,  stock
               appreciation, deferred compensation, severance, or other material
               plan or  arrangement  for the  benefit  of its  current or former
               directors,  officers,  and  employees  (not  including  customary
               fringe benefits such as accrued vacation or sick leave);

               (I) any  agreement  for the  employment  of any  individual  on a
               full-time,  part-time,  consulting,  or other  basis which is not
               terminable  at-will  or which  provides  annual  compensation  in
               excess of $100,000 or severance benefits;

<PAGE>

               (J) any  agreement  under which Target has advanced or loaned any
               amount  which  remains  outstanding,  to any  of  its  directors,
               officers,  and employees  outside the ordinary course of business
               and which will not be paid off at or prior to the Closing Date;

               (K) each Loss Contract; and

               (L) each material  amendment,  supplement,  and  modification  in
               respect of any of the foregoing.

          (ii) With respect to each such Material Contract,  except as set forth
          in Section 4(n) of the Disclosure Schedule, (A) the Contract is legal,
          valid,  binding,  enforceable,  and in full  force  and  effect in all
          material respects as to Target and, to Seller's  Knowledge,  as to the
          other  parties  thereto;  and (B)  neither  the  Target,  nor,  to the
          Knowledge of Seller,  any third party,  is in breach or default  which
          would permit  termination,  modification,  or  acceleration  under the
          Contract.

          (iii) Except as set forth on Section 4(n) of the Disclosure  Schedule,
          Target is not engaged in any  renegotiations  of any amounts in excess
          of  $250,000  paid or payable  to Target  under  current or  completed
          Contracts with any Person having the contractual or statutory right to
          demand or require  such  renegotiation.  Target has not  received  any
          written demand for such renegotiation in respect of any such Contract.
          Except as set forth on Section  4(n) of the  Disclosure  Schedule,  no
          Person,   including  any  government   contracting  officer  or  prime
          contractor   has  given  Target   written  notice  that  any  material
          adjustments are required to the terms of any Material Contracts.

     (o)  LICENSES, PERMITS AND AUTHORIZATIONS.
          ------------------------------------

          Section  4(o)  of the  Disclosure  Schedule  contains  a  list  of all
          material licenses,  approvals,  consents, franchises and other permits
          (including without limitation, all facility security clearances) of or
          with any governmental regulatory or administrative authority,  whether
          foreign,  federal,  state  or  local,  which  are held by  Seller  and
          necessary  for  the  current  conduct  of  the  Business  as it is now
          conducted  (each a  "PERMIT").  All such Permits are in full force and
          effect and there are no proceedings pending or, to Seller's Knowledge,
          threatened  that  seek the  revocation,  cancellation,  suspension  or
          adverse modification thereof. To the Seller's Knowledge,  such Permits
          constitute  all  of  the  material  licenses,   approvals,   consents,
          franchises and permits necessary to permit Target to own, operate, use
          and  maintain  its Assets in the manner in which they are now operated
          and maintained and to conduct the Business  substantially as currently
          conducted.  To the  Seller's  Knowledge,  all  required  filings  with
          respect  to such  Permits  have  been  timely  made  and all  required
          applications for renewal thereof have been timely filed.

<PAGE>

     (p)  INSURANCE.
          ---------

          Section 4(p) of the Disclosure  Schedule  includes (i) a complete list
          of all workers'  compensation and general  liability  insurance claims
          pending  with  respect  to  Target,  and (ii) a  complete  list of all
          material insurance policies relating to Target.

     (q)  LITIGATION.
          ----------

          Section 4(q) of the  Disclosure  Schedule  sets forth each instance in
          which Target (i) is subject to any outstanding  injunction,  judgment,
          order,  decree,  ruling, or charge, or (ii) is a party or, to Seller's
          Knowledge,  has received written notice that it has been threatened to
          be  made  a  party  to  any  action,  suit,  proceeding,  hearing,  or
          investigation  of,  in,  or  before  any  court or  quasi-judicial  or
          administrative  agency  of  any  federal,  state,  local,  or  foreign
          jurisdiction  or before any  arbitrator,  in which the amount  exceeds
          $50,000.

     (r)  EMPLOYEES.
          ---------

          Except as set forth in Section 4(r) of the Disclosure Schedule,  as of
          the date of this  Agreement,  no  executive  officer has given  Target
          written notice of plans to terminate employment with Target during the
          next 12 months.  Except as set forth in Section 4(r) of the Disclosure
          Statement,  Target  is not a  party  to or  bound  by  any  collective
          bargaining agreement.  There are no material complaints against Target
          pending before the National Labor Relations Board or any similar state
          or local  labor  agency  by or on behalf of any  employee  of  Target.
          Target has complied in all material  respects with all material  laws,
          rules  and  regulations  relating  to  employment,   equal  employment
          opportunity,  nondiscrimination,  immigration, wages, hours, benefits,
          collective  bargaining,  the  payment of social  security  and similar
          taxes,  and any and all payments and benefits  required by the Service
          Contract Act (hereinafter  collectively referred to as the "EMPLOYMENT
          LAWS"). To Seller's Knowledge, Target is not liable for the payment of
          taxes,  fines,  penalties or other amounts,  however  designated,  for
          failure to comply with any of the foregoing Employment Laws. There are
          no material representation questions,  arbitration proceedings,  labor
          strikes,  slow downs or stoppages,  grievances or other labor disputes
          pending or, to Seller's Knowledge, threatened with respect to Target's
          Employees.

     (s)  ENVIRONMENTAL MATTERS.
          ---------------------

          Target  owns no real  estate,  and each  portion  of the  Leased  Real
          Property is part of a larger premises also subject to lease agreements
          with  other  tenants.  Except  as set  forth  in  Section  4(s) of the
          Disclosure Schedule, to Seller's Knowledge, (i) Target has complied in
          all material respects with any Environmental  Laws, (ii) Target is not
          required to hold or obtain any  environmental  permits,  certificates,

<PAGE>

          consents  or  other  settlement   agreements,   licenses,   approvals,
          registrations or authorizations under any Environmental Laws, (iii) no
          notice,  citation,  summons or order has been issued, no complaint has
          been  filed,  no penalty has been  assessed  and no  investigation  or
          review is pending or  threatened by any  governmental  or other entity
          relating to the Leased  Real  Property  or  Target's  operations  with
          respect to any alleged violation by Target of any Environmental Law or
          with respect to any use, possession,  generation,  treatment, storage,
          recycling,  transportation or disposal of any Hazardous  Substances by
          or on  behalf of  Target,  (iv)  there  are no facts or  circumstances
          related to environmental  matters  concerning the Leased Real Property
          that could  reasonably  be  expected  to lead to any  future  material
          environmental claims against Target under current  Environmental Laws,
          and (v) there have been no environmental inspections,  investigations,
          studies,  audits,  tests,  reviews  or  other  analyses  conducted  in
          relation to any Leased Real  Property,  Target or the  Business  which
          have not been provided or reported to Target.

     (t)  EMPLOYEE BENEFITS.
          -----------------

          (i)  Section  4(t) of the  Disclosure  Schedule  lists  each  material
          Employee  Benefit  Plan  that  Target  maintains  or to  which  Target
          contributes.

          (ii)  Each  such  Employee  Benefit  Plan  (and  each  related  trust,
          insurance  contract,  or fund) complies in all material  respects with
          the applicable  requirements of ERISA,  the Code, and other applicable
          laws.

          (iii) All  required  reports  and  descriptions  (including  Form 5500
          Annual Reports,  Summary Annual Reports,  PBG-C-l's,  and Summary Plan
          Descriptions)  have  been  filed  or  distributed  appropriately  with
          respect to each such Employee Benefit Plan.

          (iv) All  contributions for any period ending on or before the Closing
          Date  which  are not yet due  have  been  paid to each  such  Employee
          Pension Benefit Plan or accrued in accordance with the past custom and
          practice of Target.  All  premiums or other  payments  for all periods
          ending on or before the  Closing  Date have been paid with  respect to
          each such Employee  Benefit Plan which is an Employee  Welfare Benefit
          Plan.

          (v) Each such  Employee  Benefit  Plan  which is an  Employee  Pension
          Benefit Plan meets the  requirements of a "qualified  plan" under Code
          Section 401 (a) and has received a favorable determination letter from
          the Internal Revenue Service.

          (vi) Copies of the plan documents and summary plan  descriptions,  the
          most recent  determination  letter received from the Internal  Revenue
          Service,  the most  recent Form 5500  Annual  Report,  and all related
          trust agreements,  insurance  contracts,  and other funding agreements
          which  implement  each  such  Employee  Benefit  Plan  have  been made
          available to Buyer.

<PAGE>

          (vii) With respect to each Employee Benefit Plan that Target maintains
          or  ever  has  maintained  or  to  which  it  contributes,   ever  has
          contributed,  or ever has been required to contribute,  Target has not
          incurred any  material  liability to the PBGC (other than PBGC premium
          payments)  or  otherwise  under  Title  IV  of  ERISA  (including  any
          withdrawal  liability)  or under  the Code  with  respect  to any such
          Employee Benefit Plan which is an Employee Pension Benefit Plan.

          (viii) Target never has  contributed to, nor ever has been required to
          contribute to, any Multiemployer  Plan nor has any material  liability
          (whether known or unknown,  whether  asserted or  unasserted,  whether
          absolute  or  contingent,   whether  accrued  or  unaccrued,   whether
          liquidated  or  unliquidated,  and  whether  due  or to  become  due),
          including any withdrawal liability, under any Multiemployer Plan.

          (ix) Target does not  maintain  nor ever has  maintained  nor ever has
          contributed  to,  nor ever  has been  required  to  contribute  to any
          Employee  Welfare  Benefit Plan  providing  medical,  health,  or life
          insurance or other welfare-type benefits for current or future retired
          or terminated  employees,  their spouses,  or their dependents  (other
          than in accordance with Code Section 498(B).

     (u)  GUARANTIES.
          ----------

          Except for joint  ventures,  teaming  arrangements  and other  matters
          covered under the Government  Contracts,  Target is not a guarantor or
          otherwise   responsible  for  any  material  liability  or  obligation
          (including  indebtedness)  of any other  Person.  Section  4(u) of the
          Disclosure  Schedule  sets  forth  a list of all  material  guaranties
          provided  by any  corporate  Affiliate  of Target  for the  benefit of
          Target or with respect to the Business.

     (v)  GOVERNMENT CONTRACTS.
          --------------------

          With respect to each Government Contract:

          (i) To Seller's Knowledge,  during the past five years, no payment has
          been made by Target,  or by any Person  authorized  to act on Target's
          behalf, to any Person in connection with any such Government Contract,
          in  violation  of  applicable  procurement,  criminal or civil laws or
          regulations or in violation of (or requiring  disclosure  pursuant to)
          the Foreign Corrupt Practices Act.

          (ii) With respect to each material Government Contract,  except as set
          forth  in  section  4(v)  of  the  Disclosure  Schedule,  to  Seller's
          Knowledge  (A)  Target  has  complied  with  all  material  terms  and
          conditions  of  such  Government  Contract,   including  all  clauses,
          provisions and requirements incorporated expressly, by reference or by
          operation  of law  therein,  (B) Target has  complied in all  material
          respects with all  requirements  of applicable laws pertaining to such

<PAGE>

          Government  Contract,   (C)  all  representations  and  certifications
          executed,  acknowledged or set forth in such Government  Contract were
          complete  and correct in all material  respects as of their  effective
          date,  and Target has complied in all material  respects with all such
          representations and certifications,  and (D) neither the United States
          Government nor any prime contractor, subcontractor or other Person has
          notified  Seller in writing  that Target has  breached or violated any
          applicable  law (except  where the failure to comply  would not have a
          Material   Adverse   Effect),    or   any   material    certification,
          representation,  clause,  provision or requirement  pertaining to such
          Government Contract. Without limiting the generality of the foregoing,
          the laws,  regulations and  requirements  encompassed by this warranty
          include  laws,   regulations  and   requirements   regarding   bribes,
          gratuities,  disclosure of cost or pricing  data,  submission of false
          claims  to  the  Government,   kickbacks,  receipt  or  possession  of
          contractor  bid  and  proposal   information   and  source   selection
          information (as defined in Section 3.104-5 of the Federal  Acquisition
          Regulations),  and restrictions on the activities of former Government
          employees.

          (iii) Except as identified in Section 4(v) of the Disclosure Schedule,
          Target is not currently,  and has not been in the past five (5) years,
          debarred or suspended from doing business with any Federal  government
          agency,   nor  has  any  such  suspension  or  debarment  action  been
          commenced.  No show cause notices,  notices of termination for default
          or cure  notices  have  been  issued  against  Target in the past five
          years,  except,  as to any such cure  notices,  those with  respect to
          which cure has been made in the ordinary course of business.

          (iv)  Target  is not  currently  and has not been in the past five (5)
          years,  under  administrative,  civil or  criminal  indictment  or, to
          Seller's  Knowledge,   investigation,  with  respect  to  any  alleged
          irregularity,  misstatement  or omission  arising  under or in any way
          relating to any such  Government  Contract,  except for the suspension
          and  debarment  and  investigation  identified  in Section 4(v) of the
          Disclosure Schedule.

          (v) Target has never been  denied a security  clearance  necessary  to
          perform any Government  Contract  unless such clearance has later been
          granted.

          (vi) Target is not  currently  and has not been in the past five years
          subject to any  administrative,  civil or criminal claim or indictment
          that  arises out of or relates to any alleged or actual  violation  of
          the Service  Contract Act,  Davis-Bacon Act or any wage  determination
          issued pursuant to said Acts.

     (w)  BROKERS' FEES.
          -------------

          Target has no liability or obligation  to pay any fees or  commissions
          to any  broker,  finder,  or agent with  respect  to the  transactions
          contemplated by this Agreement.

<PAGE>

     (x)  AWARD FEE SCORES.
          ----------------

          Section 4(x) of the  Disclosure  Schedule  identifies  completely  and
          accurately  for  each  Government  Contract  constituting  part of the
          Assets, the award fee scores for calendar years 1999 and 1998.

     (y)  DISCLOSURE.
          ----------

          To the Knowledge of the Seller,  the  representations  and  warranties
          contained in this  Section 4 do not contain any untrue  statement of a
          material fact or omit to state any material fact necessary in order to
          make the  statements and  information  contained in this Section 4 not
          misleading.

5.    PRE-CLOSING COVENANTS.
      ---------------------

     The  Parties  agree as  follows  with  respect to the  period  between  the
     execution of this Agreement and the Closing Date.

     (a)  GENERAL.
          -------

          Each of the Parties will use its reasonable  efforts to cooperate with
          the  other  parties  in order to  consummate  and make  effective  the
          transactions contemplated by this Agreement.

     (b)  HSR AND GOVERNMENTAL CONSENTS.
          -----------------------------

          (i) Buyer and Seller will give any notices to, make any filings  with,
          and use reasonable  efforts to obtain as promptly as  practicable  any
          authorizations,   consents,   and   approvals   of   governments   and
          governmental   agencies.   Without  limiting  the  generality  of  the
          foregoing,  each of the Parties will file any  Notification and Report
          Forms and  related  material  that it may be required to file with the
          Federal  Trade  Commission  and the  Antitrust  Division of the United
          States Department of Justice under the Hart-Scott-Rodino Act. Any fees
          in connection  with such filing and any review or  processing  thereof
          shall  be paid by the  Buyer.  Buyer  and  Seller  will  each  use its
          reasonable  efforts  to obtain a waiver  from the  applicable  waiting
          period,   and  will  make  any   further   filings   pursuant  to  the
          Hart-Scott-Rodino Act that may be necessary in connection therewith.

          (ii) Buyer,  Target and Seller will give any required notices to, make
          any required  filings with,  and use  reasonable  efforts to obtain as
          promptly as practicable authorizations, consents, and approvals by the
          Defense  Security  Service,  the Council on Foreign  Investment in the
          United  States,  and any  other  necessary  government  authority,  of
          Buyer's acquisition of Target Shares and the continued  performance of
          classified Government Contracts by Target following the Closing.

<PAGE>

     (c)  OPERATION OF BUSINESS.
          ---------------------

          From the date hereof to the Closing Date, Target and Seller shall not,
          and Seller will not permit Target to, engage in any practice, take any
          action,  or enter into any transaction  outside the ordinary course of
          the Business. Without limiting the generality of the foregoing, except
          with the written  consent of Buyer,  Target  shall not and Seller will
          not cause Target to:

          (i) change or amend the Articles of Incorporation or Bylaws of Target;

          (ii) enter into,  extend,  materially  modify,  terminate or renew any
          Material Contract other than in the ordinary course of business;

          (iii) sell,  assign,  transfer,  convey,  lease,  mortgage,  pledge or
          otherwise dispose of or encumber any material Assets, or any interests
          therein other than in the ordinary course of business;

          (iv) except as otherwise required by law, and except for the retention
          bonuses and other matters  described in Section 5(c) of the Disclosure
          Schedule,  take any action relating to Target's employees with respect
          to the grant of any salary increase,  bonus,  severance or termination
          pay  (otherwise  than  pursuant to policies or agreements of Target in
          effect on the date hereof and  described in Target's  Employee  Policy
          and Procedure  Manual or in Section 5(c) of the Disclosure  Schedule),
          or  with  respect  to any  increase  of  benefits  payable  under  its
          severance or  termination  pay policies or agreements in effect on the
          date hereof or increase in any material  respect the  compensation  or
          fringe benefits of any employee or pay any benefit not required by any
          existing Employee Plan, agreement or policy;

          (v)  make  any  change  in the key  management  structure  of  Target,
          including,  without  limitation,  the hiring of additional officers or
          the termination of existing officers other than in the ordinary course
          of business;

          (vi)  adopt,  enter  into  or  amend  any  Employee  Plan,   agreement
          (including,   without   limitation,   any  collective   bargaining  or
          employment  agreement),  trust,  fund  or  other  arrangement  for the
          benefit or welfare of its employees  other than in the ordinary course
          of business;

          (vii) acquire by merger or consolidation with, or merge or consolidate
          with,  or purchase  substantially  all of the assets of, or  otherwise
          acquire  any   material   assets  or  business  of  any   corporation,
          partnership,  association or other business  organization  or division
          thereof;

<PAGE>

          (viii)  make any  capital  expenditures  or  commitments  in excess of
          $100,000 in the aggregate,  except any such expenditures  disclosed to
          Buyer prior to the date hereof;

          (ix) make any  loans or  advances  in  excess of $5,000 to any  Person
          other than in the ordinary course of business;

          (x) make any material tax election or settlement  or  compromise  with
          tax authorities that would affect the Assets or the Business after the
          Closing  hereunder,  except as set  forth in  Section  5(c)(x)  of the
          Disclosure Schedule;

          (xi)   intentionally   do  any   other  act  that   would   cause  any
          representation or warranty in this Agreement to be or become untrue in
          any material respect;

          (xii) fail to maintain the tangible  Assets in their  current state of
          repair, excepting normal wear and tear or casualty, or fail to replace
          consistent with Target's past practice inoperable,  worn out, obsolete
          or destroyed Assets;

          (xiii) make any changes in accounting  policies or practices except as
          set forth in Section 5(c)(xiii) of the Disclosure  Schedule;  provided
          that  Seller  shall  cause  Target  to report  to Buyer  promptly  any
          additional  such changes Target  proposes to make, and Buyer shall not
          withhold  its  consent  to any  such  change  if the  same  would  not
          reasonably  be  deemed  to have an  adverse  effect on Target or Buyer
          after the Closing Date;

          (xiv) declare, set aside, or pay any dividend or make any distribution
          with respect to its capital  stock or redeem,  purchase,  or otherwise
          acquire any of its capital stock;

          (xv) suffer any Material Adverse Change;

          (xvi) take on or incur debt or other business liabilities except those
          relating to normal business activities; or

          (xvii) enter into any agreement,  or otherwise become obligated, to do
          any action prohibited hereunder.

     (d)  FULL ACCESS.
          -----------

          Seller and Target  will permit  representatives  of Buyer to have full
          access at all reasonable times, and in a manner so as not to interfere
          with the  normal  business  operations  of  Target,  to all  premises,
          properties,   personnel,   books,  records  (including  tax  records),
          contracts, and documents of or pertaining to the Business.

<PAGE>

     (e)  CONFIDENTIALITY.
          ---------------

          Except (i) for any governmental  filings required in order to complete
          the Transactions, and (ii) as Buyer and Seller may agree or consent in
          writing,  Buyer,  Seller  and  Target  will treat and hold as such any
          Confidential  Information  it  receives  from the  other  Party or its
          representatives,  in the course of the reviews contemplated by Section
          5(d)  or  otherwise,   and  will  not  use  any  of  the  Confidential
          Information  except  in  connection  with  this  Agreement;  provided,
          however,  that any party hereto may disclose such  information  to its
          legal and financial  advisors,  lenders,  financing  sources and their
          respective legal advisors and  representatives so long as such Persons
          agree  to  maintain  the   confidentiality   of  such  information  in
          accordance with this Section 5(e). If this Agreement is terminated for
          any reason  whatsoever,  each Party will  return to the other Party or
          destroy all tangible  embodiments (and all copies) of the Confidential
          Information, including all information prepared by the receiving party
          or such receiving party's representatives, which are in its possession
          or the possession of its representatives.  Any provision hereof to the
          contrary  notwithstanding, information not so destroyed (or returned)
          will   remain    subject   to   these    confidentiality    provisions
          (notwithstanding  any termination of this Agreement)  until the second
          anniversary   of  the   date  of   this   Agreement.   The   foregoing
          confidentiality  provisions  shall not apply to such  portions  of the
          information  received which (i) are or become  generally  available to
          the public through no action by the receiving party or by such party's
          representatives,  (ii) are or become  available to the receiving party
          on a  nonconfidential  basis from a source,  other than the disclosing
          party or its  representatives,  which the  receiving  party  believes,
          after  reasonable  inquiry,  is not prohibited from disclosure of such
          information by a contractual, legal or fiduciary obligation, and shall
          not  apply  to any  disclosure  after  the  Closing  by  Buyer  of any
          information relating solely to Target.

     (f)  CONSENTS; REASONABLE EFFORT; COOPERATION.
          ----------------------------------------

          Target and Seller  will make  reasonable  efforts to obtain in writing
          the consents of third parties,  in connection with the consummation of
          the Transactions,  listed on Exhibit D attached hereto,  such consents
          to be  substantially  in the form set  forth  in such  Exhibit  D (the
          "REQUIRED CONSENTS").

     (g)  NOTICE OF DEVELOPMENTS.
          ----------------------

          Buyer will give written notice to Seller of any development  causing a
          breach of any of the  representations  and  warranties in Section 3(a)
          which has not  previously  been disclosed to Seller,  with  reasonable
          promptness after Buyer gains knowledge thereof. If Buyer has knowledge
          of a breach of any of the  representations  and  warranties  contained
          herein  prior to  Closing,  but fails to notify  Seller of the  breach
          prior to Closing and thereafter closes,  Buyer shall be precluded from
          seeking  indemnification  hereunder for damages  related to that known
          breach; provided that knowledge of Buyer shall not include matters for
          which  Seller  had   Knowledge   and  failed  to  disclose  to  Buyer.

<PAGE>

          "Knowledge"  of  Seller  for  purposes  of the  immediately  preceding
          sentence  means the actual  knowledge  of  Richard  L. Shaw,  H. James
          McKnight,  Craig O.  Stuver  and  Edward L.  Wiley.  Seller  will give
          written notice to Buyer of any development  causing a breach of any of
          the representations and warranties in Section 3(b) or 4 above relating
          to Target, the Business,  the Assets or the transactions  contemplated
          hereby,  which has not  previously  been  disclosed,  with  reasonable
          promptness after Seller has Knowledge thereof.  Buyer will give Seller
          notice,  as soon as reasonably  practicable  after Buyer has knowledge
          thereof,  of  any  material  inaccuracy  of  the  representations  and
          warranties  of Seller or Target  with  regard to the  Business  or the
          Assets of which Buyer gains  knowledge from Buyer's or its agents' due
          diligence investigation with regard to this Agreement.

     (h)  EXCLUSIVITY.
          -----------

          Prior  to the  Closing  or  other  termination  of this  Agreement  in
          accordance with the terms hereof, Seller will not (and Seller will not
          cause or permit Target to) accept an offer from any Person relating to
          the  acquisition of any capital stock or other voting  securities,  or
          any portion of the Assets, of Target.  Seller will not vote its Target
          Shares in favor of any such nonpermitted  acquisition  structured as a
          merger, consolidation, or share exchange.

     (i)  NO SOLICITATIONS.
          ----------------

          From the date hereof  through the Closing Date or  termination of this
          Agreement in  accordance  with the terms  hereof,  neither  Target nor
          Seller shall  directly or through an agent  disclose  any  information
          about  Target,  solicit,  respond to requests  for  information  about
          Target,  participate in or initiate  discussions or negotiations  with
          any  Person  or  group  of  Persons  (other  than  Buyer or any of its
          Affiliates)  concerning any merger,  sale of assets, sale of shares of
          capital  stock  or  similar  transactions   involving  Target  or  the
          Business.

     (j)  EMPLOYEE MATTERS.
          ----------------

          Upon the Closing,  Buyer will enter into  employment  agreements  with
          five key executive officers (Robert Unger, Gary Wittie, Gary Billions,
          Karen Canfield and Glen Murphy) of Target (collectively,  the "Covered
          Employees").  The Employment  Contracts will pay the Covered Employees
          at least 90% of their current  salaries  (including  bonuses) and will
          not terminate for at least six months,  unless the Covered Employee is
          terminated earlier for cause as defined in the employment agreements.

          Notwithstanding the foregoing, after the Closing, Buyer may modify the
          terms of, or  terminate  the  employment  of, all other  employees  of
          Target.  It is  acknowledged  and  agreed  that  Buyer  shall  have no
          obligation  to pay,  or cause  Target  after the  Closing to pay,  any
          severance  or  termination  payments to any  employee by virtue of the
          termination  by Seller,  or by Target with Seller's  consent,  of such
          employee's employment with Target effective as of the Closing Date.

<PAGE>

6.   POST-CLOSING COVENANTS.
     ----------------------

     The  Parties  agree as follows  with  respect to the period  following  the
     Closing.

     (a)  GENERAL.
          -------

          In case at any time after the Closing any further  action is necessary
          to carry out the purposes of this Agreement,  each of the Parties will
          take such further action (including the execution and delivery of such
          further  instruments and documents) as any other Party  reasonably may
          request,  all at the sole cost and  expense  of the  requesting  Party
          (unless the requesting Party is entitled to  indemnification  therefor
          under Section 9 below).  The Parties  acknowledge  and agree that from
          and after the  Closing  Buyer will be entitled  to  possession  of the
          Books and Records,  but will provide copies thereof to Seller promptly
          upon request therefor.  Buyer will provide all reasonable  cooperation
          with Seller in connection  with obtaining any  information  reasonably
          necessary for  preparation  of financial  statements  and tax returns.
          Seller shall  promptly  forward to Target,  any  invoices  received by
          Seller after Closing for goods or services provided to or on behalf of
          Target prior to Closing and Target will be  responsible  for paying or
          otherwise  resolving such amounts.  Seller shall also promptly forward
          to Target any payments,  reimbursements  or credits received by Seller
          from third parties after Closing that are owed to Target. Target shall
          promptly reimburse to Seller any payments made by Seller after Closing
          with respect to worker's  compensation and general liability insurance
          claims to the extent of reserves  accrued for such claims on the books
          of Target at Closing.

     (b)  LITIGATION SUPPORT.
          ------------------

          In the event and for so long as any Party  actively is  contesting  or
          defending   against   any   action,   suit,    proceeding,    hearing,
          investigation,  charge, complaint, claim, or demand in connection with
          (i) any  transaction  contemplated  under this  Agreement  or (ii) any
          fact, circumstance,  condition,  occurrence,  event, incident, action,
          failure to act,  or  transaction  prior to the Closing  Date  directly
          involving  the  Business,  each of the  other  Parties  will  make all
          reasonable  efforts to cooperate with him or it and his or its counsel
          in the contest or defense, make available their personnel, and provide
          such  testimony  and  access to their  books and  records  as shall be
          reasonably necessary in connection with the contest or defense, all at
          the sole cost and expense of the contesting or defending Party (unless
          the  contesting  or  defending  Party is entitled  to  indemnification
          therefor under Section 9 below).

     (c)  BONDS.
          -----

          Seller shall continue to guaranty existing performance bonds of Target
          for up to 60 days  following  the Closing to allow  coverage of Target

<PAGE>

          while Buyer seeks  replacement  bonds.  Buyer will use reasonable best
          efforts to obtain  replacement  bonds as promptly as practicable so as
          to enable Seller to discontinue its existing bonds. Seller will effect
          such  discontinuance  as  promptly as  practicable.  Buyer and Target,
          jointly and severally,  will reimburse  Seller for the following:  (i)
          all actual  costs  associated  with  maintaining  or  guarantying  the
          existing bonds  (including the pro rata amount of any prepayments with
          respect  thereto)  after  Closing for the benefit of Target,  (ii) all
          actual  payments  made by Seller with respect to such  existing  bonds
          after Closing, and (iii) all Adverse  Consequences  incurred by Seller
          as a result of maintaining  or  guarantying  such existing bonds after
          the  Closing.  Notwithstanding  anything  to  the  contrary  contained
          herein,  Target's  obligation  to reimburse  Seller under this Section
          6(c) shall  expire  upon the  earlier of (A)  replacement  of the last
          performance  bond and release of Seller from all liability  under such
          bonds, or (B) receipt by Seller of evidence  satisfactory to Seller of
          the guarantor's financial condition.

7.   CONDITIONS TO OBLIGATION TO CLOSE.
     ---------------------------------

     (a)  CONDITIONS TO OBLIGATION OF BUYER.
          ---------------------------------

          The obligation of Buyer to consummate the transactions to be performed
          by it in connection with the Closing is subject to satisfaction of the
          following conditions:

          (i) the  representations and warranties set forth in Sections 3(b) and
          4 above shall be true and correct in all  material  respects at and as
          of  the  Closing  Date  (except  for  those  expressly  relating  to a
          different  date) unless the  aggregate  amount of all breaches of such
          representations and warranties exceeds $500,000;

          (ii) Seller shall have performed and complied in all material respects
          with all of its covenants hereunder through the Closing;

          (iii) no action, suit, or proceeding shall be pending before any court
          or  quasi-judicial  or  administrative  agency of any federal,  state,
          local,  or foreign  jurisdiction  or before any arbitrator  wherein an
          unfavorable  injunction,  judgment,  order, decree,  ruling, or charge
          would prevent consummation of any of the transactions  contemplated by
          this Agreement or have a Material Adverse Effect;

          (iv) all applicable waiting periods (and any extensions thereof) under
          the  Hart-Scott-Rodino  Act  shall  have  expired  or  otherwise  been
          terminated;

          (v) Buyer  shall  have  received  from  counsel  to Seller an  opinion
          substantially  in the form set  forth in  Exhibit E  attached  hereto,
          addressed to Buyer,  reasonably  satisfactory to Buyer and its counsel
          and dated as of the Closing Date;

<PAGE>

          (vi) Buyer shall have  received from Seller such  certificates  of its
          duly authorized  officers and others,  evidencing  compliance with the
          conditions  set forth in this Section 7(a) and  containing  such other
          customary information as may be reasonably requested by Buyer;

          (vii) Buyer shall have received the consents set forth in Section 5(b)
          hereof;

          (viii) Prior to Closing,  Buyer shall have received  written  approval
          from Defense  Security  Service of its proposed  proxy  agreement  and
          Target's  retention of its classified  Government  Contracts in a form
          satisfactory to Buyer from authorized U.S. Government officials;

          (ix) Buyer  shall be  satisfied  that (A) the  previous  debarment  or
          suspension  of  Target  with  respect  to  the  Air  Force  Office  of
          Contractor   Compliance  matter  described  in  Section  4(v)  of  the
          Disclosure  Schedule is resolved,  and (B) Target will not be required
          with respect to such debarment and suspension  matter to enter into an
          Administrative  Agreement  which  imposes on Target  any  requirements
          other than the adoption of training programs which would be materially
          burdensome to Target or Buyer and its Affiliates;  provided that prior
          to  Closing  Buyer  shall  have used its  reasonable  best  efforts to
          achieve a resolution  of such  debarment and  suspension  matter which
          meets the requirements of this condition;

          (x)  Seller   shall  have   executed   and   delivered  to  Buyer  the
          Noncompetition Agreement in the form attached as Exhibit B hereto;

          (xi) Seller  shall have  executed  and  delivered to Buyer a five-year
          trademark license agreement, in the form attached as Exhibit F hereto,
          authorizing Buyer to use the name of Target;

          (xii) Between the date hereof and the earlier of  termination  of this
          Agreement or the Closing  Date,  Seller shall make Robert Unger and/or
          Glen Murphy reasonably  available to work jointly with Buyer to obtain
          a confirmation reasonably acceptable to Buyer from the U.S. Government
          that Target will not be precluded  from bidding on and receiving  base
          telecommunications  contracts  or from  being  awarded  options  under
          existing   base   telecommunication   contracts   by   virtue  of  the
          transactions  contemplated  by  this  Agreement;   provided  that,  in
          recognition  of the  sensitivity  of this issue and the  potential for
          damaging the Business,  Buyer will act prudently and judiciously so as
          to avoid impairing Target's existing relationships.

          (xiii)  Seller  shall cause the  Audited  Financial  Statements  to be
          delivered to Buyer,  including the final audit report  and/or  opinion
          and the audit shall not reveal a decrease  in  Target's  shareholders'
          equity (excluding goodwill) of $500,000 or more from that reflected in
          the unaudited balance sheet of Target as of December 31, 1999;

<PAGE>

          (xiv) Seller shall cause a good standing certificate or certificate of
          existence,  dated as of the Closing Date,  from the Secretary of State
          of Texas to be delivered to Buyer;

          (xv) Seller shall deliver to Buyer evidence reasonably satisfactory to
          Buyer that the Mellon Bank  Security  Interest and any other  Security
          Interests,  including but not limited to any assignments of Government
          Contract proceeds, with respect to the Assets have been released; and

          (xvi) Since the date of execution of this Agreement,  Target will have
          made  commercially  reasonable  efforts,  and  Seller  will  have made
          commercially  reasonable efforts to cause Target, to keep the Business
          and Assets  substantially  intact,  including  its present  operation,
          physical  facilities,  and  relationships  with  employees,   lessors,
          licensors,  suppliers and customers,  subject to customary  commercial
          practice.

          Buyer  may waive  any  condition  specified  in this  Section  7(a) in
          writing, or by consummating the transactions contemplated hereby.

     (b)  CONDITIONS TO OBLIGATION OF SELLER.
          ----------------------------------

          The  obligation  of  Seller  to  consummate  the  transactions  to  be
          performed  by  it  in  connection  with  the  Closing  is  subject  to
          satisfaction of the following conditions:

          (i) the representations and warranties set forth in Section 3(a) above
          shall be true and  correct in all  material  respects at and as of the
          Closing  Date  (except  for those  expressly  relating  to a different
          date);

          (ii) Buyer shall have performed and complied in all material  respects
          with all of its covenants hereunder through the Closing;

          (iii) no action, suit, or proceeding shall be pending before any court
          or  quasi-judicial  or  administrative  agency of any federal,  state,
          local,  or foreign  jurisdiction  or before any arbitrator  wherein an
          unfavorable  injunction,  judgment,  order, decree,  ruling, or charge
          would prevent consummation of any of the transactions contemplated, by
          this Agreement;

          (iv) all applicable waiting periods (and any extensions thereof) under
          the  Hart-Scott-Rodino  Act  shall  have  expired  or  otherwise  been
          terminated;

          (v)  Seller  shall  have  received  from  counsel  to Buyer an opinion
          substantially  in the form set  forth in  Exhibit G  attached  hereto,
          addressed  to  Seller,  reasonably  satisfactory  to  Seller  and  its
          counsel,  and dated as of the  Closing  Date.  Seller  also shall have
          received  on or before May 10,  2000 an opinion in form and  substance
          reasonably  satisfactory  to  Seller  and  its  counsel  as to (i) the
          enforceability  of the letter  agreement of even date herewith between
          the Seller and the guarantor thereunder and (ii) the joint and several
          liability  of  such  guarantor's   parent  entity  under  such  letter
          agreement in accordance with French law;

<PAGE>

          (vi) Seller shall have received from Buyer resolutions  adopted by the
          Board of Directors of Buyer  approving this  Agreement,  the Ancillary
          Agreements  and the  transactions  contemplated  hereby  and  thereby,
          certified by Buyer's corporate secretary or assistant secretary;

          (vii) The Ancillary  Agreements to which Buyer or Seller is a party in
          the forms attached as exhibits  hereto shall have been executed in the
          forms  initialed by the parties for  identification  as of the date of
          this Agreement,  and Buyer shall have executed and delivered to Seller
          the Escrow Agreement;

          (viii) The Seller's  board of directors,  or an  authorized  committee
          thereof,  shall have duly  authorized  and approved this Agreement and
          the transactions contemplated thereunder; and

          (ix) Seller shall have  received from Buyer such  certificates  of its
          duly authorized  officers and others,  evidencing  compliance with the
          conditions  set forth in this Section 7(b) and  containing  such other
          customary information as may be reasonably requested by Seller.

8.   CONSENTS TO ASSIGNMENT OR NOVATION; RISK OF LOSS.
     ------------------------------------------------

     (a)  CONSENTS.
          --------

          Anything  in this  Agreement  to the  contrary  notwithstanding,  this
          Agreement  shall not  constitute  an agreement to assign or novate any
          Contract,  or any claim or right or any benefit arising  thereunder or
          resulting  therefrom,  if an attempted assignment or novation thereof,
          without the  consent of a third  party  thereto,  would  constitute  a
          breach  thereof  or in any way  adversely  affect the rights of Target
          thereunder.  If  such  consent  is not  obtained,  or if an  attempted
          assignment or novation  thereof would be  ineffective  or would affect
          the  rights  thereunder  so that  Target  would not  receive  all such
          rights,  Seller and Buyer will cooperate,  in all reasonable  respects
          but without  material cost to Seller which is not promptly  reimbursed
          by Buyer,  to obtain such consent as soon as  practicable  and,  until
          such consent is obtained,  to provide to Target the benefits under any
          Contract to which such consent  relates (with Target  responsible  for
          all the liabilities and obligations thereunder).  Recognizing that any
          action taken by Seller pursuant to this Section 8(a) is at the request
          of and for the benefit of Buyer,  Buyer agrees to  indemnify  and hold
          harmless Seller from and against any claim, loss, liability,  damages,
          cost or expense  (including  reasonable  attorneys' fees and expenses)
          arising from or related to any breach or default under such  contracts
          by Target  following  the Closing  Date or any action  taken by Seller
          pursuant to the terms of this Section 8(a) at the request of Buyer. No

<PAGE>

          failure of a Contract to be transferred  shall be deemed to affect any
          amount  payable to Seller  pursuant to any  provision  of Section 2 of
          this Agreement, except to the extent such failure is the result of any
          breach by Target or Seller of any covenant, representation or warranty
          contained herein.

     (b)  RISK OF LOSS.
          ------------

          If any material portion of the tangible Assets is destroyed or damaged
          by fire or any other cause prior to the Closing Date which destruction
          or damage  disables  Target from  carrying on, or  materially  impairs
          Target's  ability to carry on a material part of the Business,  Seller
          shall give written  notice to Buyer as soon as reasonably  practicable
          after, but in any event within five business days of, Seller obtaining
          Knowledge thereof including information as to the amount of insurance,
          if any,  believed to cover such destruction or damage.  In such event,
          prior to the  Closing,  Buyer  shall have the  option,  which shall be
          exercised by written  notice to Seller within 10 days after receipt of
          Seller's  notice  or,  if there are not 10 days  prior to the  Closing
          Date, as soon as practicable prior to the Closing Date, of (i) closing
          with such Assets in their  destroyed  or damaged  condition,  in which
          event  Buyer shall be entitled  to the  proceeds of any  insurance  or
          other proceeds  payable with respect to such loss and,  subject to the
          limitations set forth in Section 9 hereof, to indemnification  for any
          uninsured  portion of such loss to the extent provided by such Section
          9, and the full  purchase  price  shall be  paid,  (ii) if  agreed  by
          Seller,  excluding  such  Assets  from  the  transaction  contemplated
          hereby,  in which  case the  purchase  price  shall be  reduced by the
          amount  allocated  to such  Assets,  as  mutually  agreed  between the
          Parties,  and  Seller  shall  be  entitled  to  promptly  receive  any
          insurance or other  proceeds  payable  with  respect to such loss,  or
          (iii) after providing  Target with a reasonable  opportunity to repair
          such  destruction or damage,  terminating this Agreement in accordance
          with Section 11, below.

9.   SURVIVAL; INDEMNIFICATION.
     -------------------------

     (a)  SURVIVAL.
          --------

          Notwithstanding  any investigation at any time conducted by any of the
          Parties  hereto,  each of the Parties hereto shall be entitled to rely
          on the  representations  and warranties of the other Parties set forth
          in this  Agreement and in any  schedule,  exhibit,  or other  document
          delivered pursuant to this Agreement.  All of the  representations and
          warranties of the Parties  contained in this  Agreement  shall survive
          the Closing and  continue in full force and effect for a period of two
          years  thereafter  except as otherwise  expressly set forth herein and
          except that those representations made with respect to the matters set
          forth in  Sections  4(a)(ii)  and (iii),  4(k),  4(s) and 4(t) and any
          claim with respect  thereto shall survive until ninety (90) days after
          the  expiration  of  the  applicable   statute  of  limitations  (with
          extensions)  with respect to the matters  addressed in those Sections.
          The termination  after Closing of the  representations  and warranties

<PAGE>

          provided  herein  shall not affect the rights of a party in respect of
          any claim made by such party in a writing  received by the other party
          prior to the expiration of the  applicable  survival  period  provided
          herein.  Any claim for  indemnification  described in Section 9(b)(ii)
          below  shall  survive  until  90  days  after  the  expiration  of the
          applicable  statute of limitations  (with  extensions) with respect to
          matters  covered  thereby.   All  other  claims  for   indemnification
          hereunder, except with respect to breaches of Sections 6(c), 10(b) and
          10(g), must be asserted within three years of Closing.

     (b)  INDEMNIFICATION PROVISIONS FOR BENEFIT OF BUYER.
          -----------------------------------------------

          In the event Target or Buyer suffers  Adverse  Consequences  after the
          Closing  as a result  of (i) the  breach by Seller or Target of any of
          their respective  representations and warranties  contained in Section
          3(b) or 4 hereof or of any  covenant  in this  Agreement,  or (ii) any
          Pre-Closing  Environmental Liability,  (each, a "BUYER INDEMNIFICATION
          MATTER"),   provided   that   Buyer   makes  a   written   claim   for
          indemnification  against Seller within the survival  period  described
          above, then Seller and Target, jointly and severally,  shall indemnify
          and hold  harmless  Buyer and its  Affiliates,  and  their  respective
          directors,  officers,  shareholders and employees  (collectively,  the
          "BUYER  PARTIES")  from and  against any  Adverse  Consequences  Buyer
          Parties  may  suffer  through  and  after  the date of the  claim  for
          indemnification  (including any Adverse Consequences Buyer Parties may
          suffer  after  the end of any  applicable  survival  period)  directly
          resulting  from  or  caused  by  such  Buyer  Indemnification   Matter
          (calculated as set forth in subsection (e) below).

     (c)  INDEMNIFICATION PROVISIONS FOR BENEFIT OF SELLER.
          ------------------------------------------------

          In  the  event  (i)  Buyer  breaches  any of  its  representations  or
          warranties  contained herein, (ii) Buyer breaches any of its covenants
          contained  herein,  or (iii) Buyer or Target terminates the employment
          of  any   Target   employees   after   Closing,   (each,   a   "SELLER
          INDEMNIFICATION MATTER"), and a claim is made against Seller or any of
          Seller Parties (as defined below) with respect thereto,  provided that
          Seller or such Seller Party makes a written claim for  indemnification
          against Buyer within the survival period described  above,  then Buyer
          agrees to indemnify, save, and hold harmless Seller and its Affiliates
          and their respective directors,  officers,  shareholders and employees
          (collectively,  the  "SELLER  PARTIES")  from and  against any Adverse
          Consequences such Seller Parties may suffer through and after the date
          of the claim for indemnification  (including any Adverse  Consequences
          such  Seller  Parties  may  suffer  after  the  end of any  applicable
          survival  period)  resulting from or caused by Seller  Indemnification
          Matter (calculated as set forth in subsection (e) below.

     (d)  MATTERS INVOLVING THIRD PARTIES.
          -------------------------------

          (i) If any  third  party  shall  notify  any Party  (the  "INDEMNIFIED
          PARTY") with respect to any matter (a "THIRD PARTY  CLAIM")  which may
          give rise to a claim for indemnification  against any other Party (the

<PAGE>

          "INDEMNIFYING PARTY") under this Section 9, then the Indemnified Party
          shall  promptly  notify  each  Indemnifying  Party  thereof in writing
          within 30 days  after the  Indemnified  Party has  knowledge  thereof;
          provided,  however,  that the  Indemnified  Party's failure to provide
          timely  such notice  shall not bar the  Indemnified  Party's  right to
          indemnification  hereunder if the Indemnified Party can establish that
          such failure has not materially  prejudiced the  Indemnifying  Party's
          ability to defend the claim or proceeding.

          (ii) Any Indemnifying  Party will have the right, at its sole cost and
          expense,  to assume the defense of the Third Party Claim with  counsel
          of its choice reasonably  satisfactory to the Indemnified Party at any
          time within 10  business  days after the  Indemnified  Party has given
          notice  of  the  Third  Party  Claim;  PROVIDED,   HOWEVER,  that  the
          Indemnifying   Party  shall   periodically   thereafter   provide  the
          Indemnified Party with reasonably  sufficient  evidence of the ability
          of the  Indemnifying  Party to  satisfy  its  obligations  under  this
          Section 9 with  respect to such Third Party  Claim.  In the event that
          the Indemnifying Party assumes the defense as set forth hereunder, the
          Indemnifying  Party shall conduct the defense of the Third Party Claim
          with reasonable diligence thereafter. The Indemnified Party may retain
          separate  co-counsel at its sole cost and expense and  participate  in
          the  defense of the Third  Party  Claim,  provided  that  Indemnifying
          Party's counsel will consult with such co-counsel, but shall remain in
          sole control of such action.

          (iii) So long as the Indemnifying  Party has assumed and is conducting
          the  defense  of the Third  Party  Claim in  accordance  with  Section
          9(d)(ii)  above,  (A) the  Indemnifying  Party will not consent to the
          entry of any judgment or enter into any settlement with respect to the
          Third Party Claim without the prior written consent of the Indemnified
          Party (not to be withheld, conditioned or delayed unreasonably) unless
          the judgment or proposed settlement involves only the payment of money
          damages by one or more of the Indemnifying Parties and does not impose
          any material injunction or other equitable relief upon the Indemnified
          Party and (B) the  Indemnified  Party will not consent to the entry of
          any  judgment or enter into any  settlement  with respect to the Third
          Party Claim  without  the prior  written  consent of the  Indemnifying
          Party (not to be withheld, conditioned or delayed unreasonably).

          (iv)  In the  event  none  of the  Indemnifying  Parties  assumes  and
          conducts  the  defense of the Third  Party  Claim in  accordance  with
          Section 9(d)(ii) above.  However, (A) the Indemnified Party may defend
          against  the Third Party  Claim in any manner it  reasonably  may deem
          appropriate;  provided  that the  Indemnified  Party shall conduct the
          defense of the Third Party Claim with reasonable diligence and (B) the
          Indemnifying   Parties  will  remain   responsible   for  any  Adverse
          Consequences the Indemnified Party may suffer resulting from,  arising
          out of,  relating  to, in the nature of, or caused by the Third  Party
          Claim to the extent provided in this Section 9. In such event, (1) the
          Indemnifying Party may retain separate co-counsel at its sole cost and
          expense and  participate in the defense of the Third Party Claim,  and
          the Indemnified  Party's counsel will consult with such co-counsel but
          shall  remain  in  sole  control  of  such  proceeding,  and  (2)  the

<PAGE>

          Indemnified  Party will not  consent to the entry of any  judgment  or
          enter  into any  settlement  with  respect  to the Third  Party  Claim
          without the prior written consent of the Indemnifying Party (not to be
          withheld, conditioned or delayed unreasonably).

     (e)  DETERMINATION OF ADVERSE CONSEQUENCES.
          -------------------------------------

          The Parties shall make  appropriate  adjustments for tax  consequences
          (net  of  tax  benefits  received)  and  insurance  coverage  (net  of
          insurance proceeds received) in determining  Adverse  Consequences for
          purposes of this Section 9. In calculating  Adverse  Consequences with
          respect to actual  out-of-pocket  costs paid by an Indemnified  Party,
          there shall be included  interest at the Applicable Rate from the date
          such costs are paid. The parties agree to use commercially  reasonable
          efforts  to  make  claims  on and  pursue  recovery  with  respect  to
          insurance on account of such  matters.  All  indemnification  payments
          under  this  Section 9 shall be  deemed  adjustments  to the  Purchase
          Price.

     (f)  INDEMNIFICATION DEDUCTIBLE.
          --------------------------

          (i) Seller will have no  liability  pursuant  to Section  9(b) for the
          first $300,000 of Adverse Consequences in the aggregate,  which amount
          shall constitute a deductible.

          (ii) With  respect to  indemnification  pursuant  to Section  9(c)(i),
          Buyer  will  have no  liability  for the  first  $300,000  of  Adverse
          Consequences  in  the  aggregate,  which  amount  shall  constitute  a
          deductible.

     (g)  INDEMNIFICATION LIMITATION.
          --------------------------

          (i) In no event will Seller be liable  under  Section 9(b) for Adverse
          Consequences  in an  aggregate  amount  of more than  $4,000,000  (the
          "Seller Cap"), provided that the Seller Cap shall automatically reduce
          to $2,000,000 in the aggregate on the first anniversary of the Closing
          Date except with respect to any Buyer Indemnification Matters properly
          asserted by Buyer in accordance with the terms of this Agreement prior
          to such first anniversary.

          (ii) With respect to indemnification  pursuant to Section 9(c)(i),  in
          no event will Buyer be liable for Adverse Consequences in an aggregate
          amount of more than  $4,000,000  (the "Buyer Cap"),  provided that the
          Buyer Cap shall automatically reduce to $2,000,000 in the aggregate on
          the first  anniversary  of the Closing Date except with respect to any
          Seller   Indemnification   Matters  properly  asserted  by  Seller  in
          accordance  with the  terms  of this  Agreement  prior  to such  first
          anniversary.

<PAGE>

     (h)  EXCLUSIVE REMEDY.
          ----------------

          After Closing the sole and exclusive  remedy of the Parties for breach
          of this  Agreement,  including  a breach  of the  representations  and
          warranties contained herein, shall be indemnification pursuant to this
          Section 9.

10.  TAX MATTERS.
     -----------

     The following  provisions shall govern the allocation of  responsibility as
     between Buyer and Seller for certain tax matters:

     (a)  TAX RETURNS.
          -----------

          Seller  shall  prepare or cause to be prepared and file or cause to be
          filed all Tax Returns for Target for all periods ending on or prior to
          the  Closing  Date which are filed  after the  Closing  Date.  All Tax
          Returns for Target  prepared  by Seller  shall be prepared in a manner
          consistent  with past  practices,  except  as  otherwise  required  by
          applicable  law.  Buyer  shall,  and shall cause  Target to,  promptly
          provide and make  available to Seller all  information  it may request
          for the purpose of preparing  and filing any such return or working on
          any audit that relates to or arises from such Tax Returns.

     (b)  TAX REFUNDS.
          -----------

          Any Tax  refunds  that are  received  by Buyer or by  Target,  and any
          amounts  credited  against  Taxes to  which  Buyer  or  Target  become
          entitled,  that relate to Tax periods  ending on or before the Closing
          Date shall be for the  account of Seller,  and Buyer and Target  shall
          pay over to Seller,  for  distribution  to Seller  pro rata,  any such
          refund or the amount of any such credit within fifteen (15) days after
          receipt or entitlement thereto.

          Buyer  shall,  if Seller so requests  and at Seller's  expense,  cause
          Target to file for and obtain any refund to which  Seller is  entitled
          under this  Section  10(b);  provided  that  Seller  shall not file to
          obtain any refund  that  would have the effect of  increasing  any Tax
          liability  of Target for any taxable  period  ending after the Closing
          Date  without  obtaining  Buyer's  consent,  which  consent  shall not
          unreasonably be withheld.

          Buyer shall  permit  Seller to  represent  Target  before the relevant
          taxing  authority  with respect to such refund  claim,  provided  that
          Seller  (i) shall keep  Buyer  informed  regarding  the  progress  and
          substantive  aspects  of any such  refund  claim,  and (ii)  shall not
          compromise  or settle  any such  refund  claim if such  compromise  or
          settlement  would have the effect of  increasing  any Tax liability of
          Target for any taxable  period  ending  after the Closing Date without
          obtaining  Buyer's  consent,  such  consent  not  to  be  unreasonably
          withheld.

<PAGE>

          In  addition,  to the extent  that a claim for refund or a  proceeding
          results in a payment or credit against Taxes by a taxing  authority to
          Buyer or Target of any amount accrued on the books of Target as of the
          Closing Date, Buyer shall pay such amount to Seller,  for distribution
          to  Seller,  pro rata,  within  fifteen  (15) days  after  receipt  or
          entitlement  thereto.  In the event that any refund or credit of Taxes
          for which a payment has been made  pursuant to this  Section  10(b) is
          subsequently  reduced or disallowed,  Seller shall  indemnify and hold
          harmless Target for any Taxes assessed  against Target (except for any
          penalties  that would  otherwise  be  included  as part of such Taxes,
          unless  such  refund was sought at the request of Seller) by reason of
          the reduction or disallowance.

     (c)  COOPERATION.
          -----------

          Buyer  and  Seller  shall  cooperate  fully,  as  and  to  the  extent
          reasonably requested by the other party, in connection with the filing
          of any Tax  Returns  for  Target and any  audit,  litigation  or other
          proceeding with respect to Taxes.  Such cooperation  shall include the
          retention  and (upon the  other  party's  request)  the  provision  of
          records  and  information  which are  reasonably  relevant to any such
          audit,  litigation or other proceeding and making employees  available
          on a mutually  convenient basis to provide additional  information and
          explanation of any material provided hereunder.

     (d)  DOCUMENTATION.
          -------------

          Buyer and Seller  further agree,  upon request,  to use all reasonable
          efforts  to  obtain  any   certificate  or  other  document  from  any
          governmental  authority  or any other  Person as may be  necessary  to
          mitigate,   reduce  or  eliminate   any  Tax  that  could  be  imposed
          (including,  but not  limited  to,  with  respect to the  transactions
          contemplated hereby).

     (e)  INFORMATION.
          -----------

          Buyer and Seller  further agree,  upon request,  to provide each other
          with all  information  that  either  party may be  required  to report
          regarding  Target or any  transaction  contemplated  by this Agreement
          pursuant  to  the  Code  and  all  Treasury   Department   Regulations
          promulgated thereunder,  and which is exclusively in the possession of
          the other party.

     (f)  TAXES AND FEES FOR THIS TRANSACTION.
          -----------------------------------

          Any transfer,  documentary,  sales, use, stamp, registration and other
          such Taxes and fees (including any penalties and interest) incurred in
          connection  with  this  Agreement  and the  transactions  contemplated
          hereby,  shall be paid by Seller when due, and Seller will, at its own
          expense,  file all necessary Tax Returns and other  documentation with
          respect  to  all  such  transfer,   documentary,  sales,  use,  stamp,
          registration  and other Taxes and fees, and, if required by applicable
          law.

<PAGE>

     (g)  LIABILITY FOR TAXES PRIOR TO CLOSING DATE.
          -----------------------------------------

          Seller  shall have sole  liability  for any Taxes  that  relate to the
          operations  of Target on or prior to the Closing  Date,  except to the
          extent that such Taxes have been  accrued on Target's  books as of the
          Closing Date. Except as otherwise  provided herein,  Seller shall have
          no  liability  with  respect to any Taxes of any kind with  respect to
          Target or its Assets or operations (i) with respect to all tax periods
          beginning  after the Closing Date, (ii) with respect to any tax period
          of Target  beginning  before the  Closing  Date and  ending  after the
          Closing Date, but only with respect to the portion  thereof  beginning
          after the  Closing  Date,  or (iii) with  respect  to any  pre-Closing
          partial  period,  but only to the extent such Taxes were paid prior to
          Closing or are  provided  for on the Books and Records of the Business
          as of the Closing Date.

     (h)  CONTESTS.
          --------

          Seller  and Buyer  agree to give  prompt  notice to each  other of any
          proposed  adjustment to Taxes for periods of Target ending on or prior
          to the Closing  Date or any  pre-Closing  partial  period.  Seller and
          Buyer shall  cooperate  with each other in the conduct of any audit or
          other proceedings involving Target for such periods and each Party may
          participate  at  its  own  expense,  provided  that  Target  may  only
          participate if the proposed  adjustment affects an item of Tax for any
          period  that  includes  the day after the  Closing or if the  proposed
          adjustment  affects any  taxable  period  beginning  after the Closing
          Date.

          Seller  shall have the right to control  the conduct of any such audit
          or proceeding for which Seller agrees that any resulting Tax allocable
          to any period prior to or including the Closing Date is covered by the
          indemnity  provided  in Section 9 of this  Agreement,  (such  audit or
          other  proceeding,  a "SELLER'S  CONTEST"),  provided that: (i) Seller
          shall keep Buyer  informed  regarding  the  progress  and  substantive
          aspect of any Seller's  Contest,  and (ii) Seller shall not compromise
          or settle any Seller's Contest without Buyer's consent,  which consent
          may not be  unreasonably  withheld.  If  Seller  chooses  to  direct a
          Seller's Contest,  Buyer shall provide powers of attorney  authorizing
          Seller to represent  Target before the relevant  taxing  authority and
          such other documents as are reasonably necessary for Seller to control
          the conduct of any Seller's Contest.

11.  TERMINATION.
     -----------

     (a)  TERMINATION BY BUYER AND SELLER.
          -------------------------------

          Buyer and  Seller  may  terminate  this  Agreement  by mutual  written
          consent at any time prior to the Closing.

<PAGE>

     (b)  TERMINATION BY BUYER.
          --------------------

          Buyer may terminate  this Agreement by giving written notice to Seller
          at any time prior to the Closing (A) in the event  Seller has breached
          any material  representation,  warranty, or covenant contained in this
          Agreement in any material  respect,  Buyer has notified  Seller of the
          breach,  and the breach has continued  without cure for a period of 10
          business  days after the notice of breach  (provided  that,  breach of
          Seller's representations and warranties if uncured shall not give rise
          to a right to terminate hereunder unless the inaccuracies constituting
          such breach or breaches exceed $500,000 in the aggregate),  (B) if the
          Closing shall not have occurred on or before the Termination  Date (as
          defined  below),  by reason of the failure of any condition  precedent
          under  Section 7(a) hereof  (unless the breach of any  representation,
          warranty,  or  covenant  of Buyer  contained  in this  Agreement  is a
          material factor  therein),  (C) if  consummation  of the  transactions
          contemplated  by this  Agreement is enjoined,  prohibited or otherwise
          restrained by the terms of a final,  non-appealable  order or judgment
          of a court of competent jurisdiction, or (D) if such termination would
          be authorized pursuant to Section 8(b) hereof.

     (c)  TERMINATION BY SELLER.
          ---------------------

          Seller may terminate  this Agreement by giving written notice to Buyer
          at any time prior to the Closing  (A) in the event Buyer has  breached
          any material  representation,  warranty, or covenant contained in this
          Agreement in any material  respect,  Seller has notified  Buyer of the
          breach,  and the breach has continued  without cure for a period of 10
          business days after the notice of breach  (provided that,  there shall
          be no cure period for Buyer's  failure to deposit the Escrow Amount by
          May 10, 2000  pursuant to Section 2(b) hereof or to deliver by May 10,
          2000 the opinion required by the second sentence of Section  7(b)(v)),
          (B)  if  the  Closing  shall  not  have  occurred  on  or  before  the
          Termination  Date  (unless the failure to close by such date is due to
          the breach of any representation,  warranty,  or covenant of Target or
          Seller  contained in this  Agreement),  or (C) if  consummation of the
          transactions contemplated by this Agreement is enjoined, prohibited or
          otherwise restrained by the terms of a final,  non-appealable order or
          judgment of a court of competent jurisdiction.

     (d)  TERMINATION DATE.
          ----------------

          "TERMINATION  DATE"  means  the  later  of (i) May 31,  2000,  (ii) 10
          business  days  after  delivery  to  Buyer  of the  Audited  Financial
          Statements, or (iii) 10 business days after expiration or termination
          of the applicable  waiting period under Hart-Scott-Rodino Act, but in
          any event not later than July 12, 2000.

<PAGE>

     (e)  TERMINATION OF RIGHTS AND DUTIES.
          --------------------------------

          If any Party terminates this Agreement pursuant to Sections 11(a), (b)
          or (c) above,  all rights and  obligations  of the  Parties  hereunder
          shall terminate  without any liability of any Party to any other Party
          (except  for any  liability  of any Party then in  breach);  provided,
          however, that the confidentiality provisions contained in Section 5(e)
          above shall survive termination.

     (f)  DISPOSITION OF EARNEST MONEY.
          ----------------------------

          The earnest money deposit  (together  with  interest  earned  thereon)
          shall be returned promptly to Buyer upon termination of this Agreement
          unless this Agreement is terminated pursuant to (i) the failure of the
          $500,000 condition precedent concerning representations and warranties
          containing materiality thresholds set forth in Section 11(b)(A),  (ii)
          Section 11(c)(A), or (iii) Section 11(c)(B), in which case the earnest
          money deposit  (together  with the interest  earned  thereon) shall be
          paid promptly to Seller.

12.   BREACH OF AGREEMENT.
      -------------------

     (a)  BREACH AND OPPORTUNITY TO CURE.
          ------------------------------

          If any party shall  breach the terms of this  Agreement  or default in
          the performance of its obligations to be performed  hereunder prior to
          Closing the nondefaulting Party shall have the right to provide Seller
          or Buyer, as applicable,  with notice  specifying in reasonable detail
          the nature of such  breach or  default.  If such breach or default has
          not been cured  within the time period  specified in Section 11 above,
          or by two business days prior to the Closing  Date,  if earlier,  then
          the Party  giving  such notice may (i)  terminate  this  Agreement  in
          accordance  with Section 11, (ii) extend the Closing Date for a period
          not in excess of 10 business  days, if such default has not been cured
          by the Closing Date (but no such extension  shall  constitute a waiver
          of such  nondefaulting  Party's right to terminate as a result of such
          default),  (iii) exercise the remedies  available to such Party at law
          or in equity, and/or (iv) proceed to Closing.

     (b)  BUYER'S REMEDY OF SPECIFIC PERFORMANCE.
          --------------------------------------

          Seller agrees that Target Shares represent unique property that cannot
          be  readily  obtained  on the  open  market  and that  Buyer  would be
          irreparably  injured if Seller's  obligation  to sell Target Shares to

<PAGE>

          Buyer  pursuant to this Agreement is not  specifically  enforced after
          default. Therefore, Buyer shall have the right to specifically enforce
          Seller's  obligation to sell Target  Shares to Buyer  pursuant to this
          Agreement,  and  Seller  agrees to waive the  defense in any such suit
          that  Buyer  has an  adequate  remedy  at  law  and  to  interpose  no
          opposition,  legal  or  otherwise,  as to the  propriety  of  specific
          performance  as  a  remedy.   As  a  condition  to  seeking   specific
          performance,  Buyer shall not be required  to have  tendered  the Cash
          Consideration, but shall be ready, willing and able to do so.

13.  MISCELLANEOUS.

     (a)  PRESS RELEASES AND PUBLIC ANNOUNCEMENTS.
          ---------------------------------------

          No Party shall issue any press release or make any public announcement
          relating to the  subject  matter of this  Agreement  without the prior
          written  approval of Buyer and  Seller;  PROVIDED,  HOWEVER,  that any
          Party may make any  public  disclosure  it  believes  in good faith is
          required  by  applicable  law  or any  listing  or  trading  agreement
          concerning   its   publicly-traded   securities  (in  which  case  the
          disclosing  Party will  advise the other  Parties  prior to making the
          disclosure).  The  Parties  agree  to  cooperate  with  each  other in
          drafting any press releases and public announcements.

     (b)  NO THIRD-PARTY BENEFICIARIES.
          ----------------------------

          This Agreement shall not confer any rights or remedies upon any Person
          other than the Parties and their  respective  successors and permitted
          assigns;  provided that Buyer Parties and Seller  Parties are intended
          third party beneficiaries of Section 9 hereof.

     (c)  ENTIRE AGREEMENT.
          ----------------

          This   Agreement   (including   the  documents   referred  to  herein)
          constitutes the entire  agreement among the Parties and supersedes any
          prior understandings,  agreements,  or representations by or among the
          Parties,  written or oral, to the extent they relate in any way to the
          subject matter hereof.

     (d)  FURTHER ASSURANCE.
          -----------------

          Each Party to this Agreement shall execute such documents and take, or
          cause  Target to take,  such  further  actions  as may  reasonably  be
          necessary to implement the provisions of this Agreement.

     (e)  SUCCESSION AND ASSIGNMENT.
          -------------------------

          This  Agreement  shall be binding upon and inure to the benefit of the
          Parties  named herein and their  respective  successors  and permitted

<PAGE>

          assigns.  None of the Parties may assign either this  Agreement or any
          of its rights,  interests,  or obligations hereunder without the prior
          written approval of Buyer and Seller; PROVIDED, HOWEVER, either Seller
          or  Buyer  may  (i)  assign  any or all of its  rights  and  interests
          hereunder to one or more of its  Affiliates  or as  collateral  to its
          financing  source,  (ii)  designate  one or more of its  Affiliates to
          perform its obligations  hereunder (in any or all of which cases under
          clause (i) or (ii) the original  Seller or Buyer,  as the case may be,
          nonetheless  shall remain fully responsible for the performance of all
          obligations  hereunder  designated  as the  obligations  of  Seller or
          Buyer,  as the case may be), and (iii) after the Closing Date,  assign
          its  rights and  obligations  under  this  Agreement  to any Person in
          connection with a sale or other  disposition of  substantially  all of
          the Business or substantially all of Target's assets, or capital stock
          without the consent of Seller.

     (f)  COUNTERPARTS.
          ------------

          This  Agreement may be executed in one or more  counterparts,  each of
          which  shall be  deemed an  original  but all of which  together  will
          constitute one and the same instrument.

     (g)  HEADINGS.
          --------

          The Section  headings  contained  in this  Agreement  are inserted for
          convenience  only and  shall  not  affect  in any way the  meaning  or
          interpretation of this Agreement.

     (h)  NOTICES.
          -------

          All  notices,  requests,  demands,  claims,  and other  communications
          hereunder will be in writing. Any notice,  request,  demand, claim, or
          other  communication   hereunder  shall  be  deemed  duly  given  when
          personally   delivered  against  a  signed  receipt  or  delivered  by
          recognized overnight courier (and then at the time of delivery or when
          delivery  is  refused)  or if it is sent  by  certified  mail,  return
          receipt requested, postage prepaid (and then three business days after
          deposited in such mail) and addressed to the intended recipient as set
          forth below:

          If to Seller:
                  H. James McKnight, Esq.
                  Michael Baker Corporation
                  P.O. Box 12259
                  Pittsburgh, PA  15231

          Copy to:
                  David L. DeNinno, Esq.
                  Reed Smith Shaw & McClay LLP
                  435 Sixth Avenue
                  Pittsburgh, PA  15219

<PAGE>

          If to Buyer:
                  Richard L. Turner
                  SKE International, L.L.C.
                  16201 South Grayson's Way
                  Coeur d'Alene, Idaho  83814

          Copy to:
                  William F. Savarino, Esq.
                  Cohen Mohr LLP
                  1055 Thomas Jefferson Street, N.W.
                  Suite 504
                  Washington, D.C.  20007

          Any  Party  may send any  notice,  request,  demand,  claim,  or other
          communication  hereunder to the intended  recipient at the address set
          forth  above  using  any other  means,  but no such  notice,  request,
          demand,  claim,  or other  communication  shall be deemed to have been
          duly given  unless and until it actually  is received by the  intended
          recipient.  Any  Party  may  change  the  address  to  which  notices,
          requests,  demands,  claims, and other communications hereunder are to
          be delivered by giving the other  Parties  notice in the manner herein
          set forth.

     (i)  GOVERNING LAW.
          -------------

          This Agreement  shall be governed by and construed in accordance  with
          the domestic  laws of the State of Delaware  without  giving effect to
          any choice or conflict of law  provision or rule (whether of the State
          of  Delaware  or  any  other   jurisdiction)   that  would  cause  the
          application  of the laws of any  jurisdiction  other than the State of
          Delaware.

     (j)  AMENDMENTS AND WAIVERS.
          ----------------------

          No amendment of any provision of this Agreement  shall be valid unless
          the same shall be in writing and signed by Buyer and Seller. No waiver
          by any Party of any default, misrepresentation,  or breach of warranty
          or covenant hereunder,  whether intentional or not, shall be deemed to
          extend  to any  prior or  subsequent  default,  misrepresentation,  or
          breach of  warranty  or  covenant  hereunder  or affect in any way any
          rights arising by virtue of any prior or subsequent such occurrence.

     (k)  SEVERABILITY.
          ------------

          Any  term  or  provision  of  this   Agreement   that  is  invalid  or
          unenforceable  in any situation in any  jurisdiction  shall not affect
          the validity or  enforceability  of the remaining terms and provisions
          hereof or the  validity or  enforceability  of the  offending  term or
          provision in any other situation or in any other jurisdiction.

<PAGE>

     (l)  EXPENSES.
          --------

          Except as otherwise  set forth  herein,  each of the Parties will bear
          its own  costs  and  expenses  (including  legal  fees  and  expenses)
          incurred  in  connection  with  this  Agreement  and the  transactions
          contemplated hereby.

     (m)  CONSTRUCTION.
          ------------

          The Parties have participated  jointly in the negotiation and drafting
          of this Agreement.  In the event an ambiguity or question of intent or
          interpretation arises, this Agreement shall be construed as if drafted
          jointly by the Parties and no  presumption  or burden of,  proof shall
          arise favoring or disfavoring any Party by virtue of the authorship of
          any of the provisions of this Agreement. Any reference to any federal,
          state,  local, or foreign statute or law shall be deemed also to refer
          to all  rules  and  regulations  promulgated  thereunder,  unless  the
          context requires otherwise.  The word "including" shall mean including
          without limitation.

     (n)  INCORPORATION OF EXHIBITS, ANNEXES, AND SCHEDULES.
          --------------------------------------------------

          The Exhibits,  Annexes, and Schedules identified in this Agreement are
          incorporated herein by reference and made a part hereof.

     (o)  TIME OF ESSENCE.
          ---------------

          With regard to all dates and time  periods set forth or referred to in
          this Agreement, time is of the essence.

     (p)  NO OTHER REPRESENTATIONS.
          ------------------------

          Except for the  representations and warranties in this Agreement or in
          any  certificate  or schedule  delivered  pursuant to this  Agreement,
          neither Seller nor Target or any representative of either: (i) will be
          deemed to have made any  representations,  warranties or assurances of
          any kind,  and (ii) will have any  obligation or liability to Buyer in
          respect of any oral or written statement or assurance made to Buyer in
          connection with the transactions contemplated hereby.

                                    * * * * *

<PAGE>

     IN WITNESS  WHEREOF,  the Parties hereto have executed this Agreement as of
the date first above written.

                                    SKE INTERNATIONAL L.L.C.

                                    By:      /s/ RICHARD L. TURNER
                                             ---------------------
                                    Title:   President
                                             ---------------------
                                    Date:    April 28, 2000
                                             ---------------------

                                    BAKER SUPPORT SERVICES, INC.

                                    By:      /s/ H. JAMES MCKNIGHT
                                             ---------------------
                                    Title:   Senior Vice President
                                             ---------------------
                                    Date:    April 28, 2000
                                             ---------------------

                                    MICHAEL BAKER CORPORATION

                                    By:      /s/ RICHARD L. SHAW
                                             ---------------------
                                    Title:   CEO
                                             ---------------------
                                    Date:    April 28, 2000
                                             ---------------------Superseder & Settlement Agreement

     This  Superseder  &  Settlement  Agreement  (the  "Agreement")  is made and
entered into by and among  AmeriNet  Group.com,  Inc., a publicly  held Delaware
corporation  with a class of  securities  registered  under Section 12(g) of the
Securities  Exchange Act of 1934, as amended ("AmeriNet" and the "Exchange Act,"
respectively);  and Xcel Associates, Inc.., a New Jersey corporation ("Xcel"); (
AmeriNet and Xcel being sometimes  hereinafter  collectively  referred to as the
"Parties" or generically as a "Party").

                                    Preamble:

     Whereas,  AmeriNet  entered  into  a  warrant  agreement  with  Xcel  dated
September  7,  1999,  wherein  Xcel was  granted a  warrant  to  purchase  up to
1,000,000  shares of  AmeriNet  common  stock at $0.75 per share  (the  "Warrant
Agreement"),   which  required   AmeriNet  to  file  a  registration   statement
registering  the  underlying  shares  (the  "Registration  Statement")  with the
Securities Exchange Commission; and.

     Whereas,  AmeriNet  did not file  Such  Registration  Statement  due to the
continually changing disclosure required; and

     Whereas,  the Parties had further  dealings  wherein Xcel was to be granted
additional  warrant  rights to purchase  up to  1,000,000  shares of  AmeriNet's
common stock at $1.25 per share; and,

     Whereas, Xcel has agreed to forego any such additional warrant rights; and,

     Whereas,  pursuant to a Loan Guaranty and  Indemnification  Agreement dated
September 30, 1999, Xcel loaned $75,000 to American  Internet  Technical Center,
Inc. ("AITC"),  then the sole AmeriNet  subsidiary,  which loan was secured by a
pledge of  35,000  shares  of  AmeriNet  common  stock by The  Yankee  Companies
("Yankees") for which Yankees was compensated by AmeriNet; and,

     Whereas,  AITC  defaulted  in repaying the loan to Xcel and Xcel was issued
the 35,000 shares of AmeriNet stock pledged to it by Yankees; and ,

     Whereas, AmeriNet has agreed to repay the $75,000 loan to Xcel and Xcel has
agreed to return the 35,000 shares to AmeriNet; and,

     Whereas,  the  Parties  wish to resolve any other  outstanding  obligations
arising from the aforementioned
dealings,

     NOW,   THEREFORE,   in  consideration   of  the  covenants,   promises  and
representations set forth herein, and for other good and valuable consideration,
the Parties, intending to be legally bound, hereby agree as follows:

                                   Witnesseth:

                                    Article I
                                   Definitions

     The following terms or phrases,  as used in this Agreement,  shall have the
following meanings:

(A)      Accredited Investor:

                    An investor that meets the  requirements for treatment as an
                    accredited investor, as defined in Rule 501(a) of Commission
                    Regulation D, which provides as follows:

                                     Page 4

<PAGE>

        Accredited investor.

                    "Accredited investor" shall mean any person who comes within
                    any  of  the  following   categories,   or  who  the  issuer
                    reasonably  believes  comes  within  any  of  the  following
                    categories,  at the  time of the sale of the  securities  to
                    that person:

                (1) Any bank as defined in  section  3(a)(2) of the Act,  or any
                    savings and loan association or other institution as defined
                    in  section  3(a)(5)(A)  of the Act  whether  acting  in its
                    individual  or  fiduciary  capacity;  any  broker  or dealer
                    registered pursuant to section 15 of the Securities Exchange
                    Act of 1934;  any  insurance  company  as defined in section
                    2(13) of the Act; any investment  company  registered  under
                    the Investment Company Act of 1940 or a business development
                    company as defined in section  2(a)(48)  of that Act;  Small
                    Business  Investment  Company  licensed  by the  U.S.  Small
                    Business  Administration  under section 301(c) or (d) of the
                    Small Business  Investment Act of 1958; any plan established
                    and maintained by a state,  its political  subdivisions,  or
                    any agency or  instrumentality  of a state or its  political
                    subdivisions for the benefit of its employees,  if such plan
                    has total assets in excess of $5,000,000;  employee  benefit
                    plan within the meaning of the  Employee  Retirement  Income
                    Security Act of 1974 if the investment decision is made by a
                    plan  fiduciary,  as defined  in section  3(21) of such Act,
                    which  is  either  a bank,  savings  and  loan  association,
                    insurance company,  or registered  investment adviser, or if
                    the  employee  benefit  plan has  total  assets in excess of
                    $5,000,000  or, if a  self-directed  plan,  with  investment
                    decisions   made  solely  by  persons  that  are  accredited
                    investors;

                (2) Any  private  business  development  company  as  defined in
                    section 202(a)(22) of the Investment Advisers Act of 1940;

                (3) Any  organization  described  in  Section  501(c)(3)  of the
                    Internal Revenue Code, corporation, Massachusetts or similar
                    business trust, or partnership,  not formed for the specific
                    purpose of  acquiring  the  securities  offered,  with total
                    assets in excess of $5,000,000;

                (4) Any director,  executive officer,  or general partner of the
                    issuer  of the  securities  being  offered  or sold,  or any
                    director, executive officer, or general partner of a general
                    partner of that issuer;

                (5) Any natural person whose  individual net worth, or joint net
                    worth with that person's spouse, at the time of his purchase
                    exceeds $1,000,000;

                (6) Any natural person who had an individual income in excess of
                    $200,000  in each of the two  most  recent  years  or  joint
                    income  with that  person's  spouse in excess of $300,000 in
                    each of those  years  and has a  reasonable  expectation  of
                    reaching the same income level in the current year;

                (7) Any trust,  with total assets in excess of  $5,000,000,  not
                    formed for the specific  purpose of acquiring the securities
                    offered,  whose  purchase  is  directed  by a  sophisticated
                    person as described in ss.230.506(b)(2)(ii); and

                (8) Any entity in which all of the equity owners are  accredited
                    investors.

(B)     Commission:  The United States Securities and Exchange Commission

                                     Page 5

<PAGE>

(C)     Exchange Act:  The Securities Exchange Act of 1934, as amended.

(D)     Exchange Act Reports:

                    The reports on Commission  Forms 10-SB,  10-KSB,  10-QSB and
                    8-K and  Commission  Schedules 14A and 14C, that AmeriNet is
                    required  to file  pursuant to  Sections  13, 14,  15(d) and
                    12(g) of the Exchange Act.

(E)    Securities Act:  The Securities Act of 1933, as amended.

                                   Article II
                              Settlement Agreement

(A)      Xcel hereby  irrevocably agrees to release AmeriNet from its obligation
         under the Warrant  Agreement to file a Registration  Statement with the
         Commission.

(B)      Xcel  further  irrevocably  agrees  to  forego  any  rights it may have
         eventually  had to purchase  1,000,000  shares of common stock at $1.25
         per share.

(C)      In  consideration  for Xcel's  release of  AmeriNet  as detailed in the
         preceding  paragraphs  (A) and (B),  AmeriNet  agrees to issue  200,000
         restricted shares of its common stock to Xcel on or before June 15,
         2000.

(D)      AmeriNet further agrees to pay to Xcel the  sum of $75,000 on or before
         June 15, 2000 as repayment  for Xcel's loan  to AITC and Xcel agrees to
         return 35,000 shares of AmeriNet stock to AmeriNet,  which  shares Xcel
         received from Yankees upon AITC's default in repaying the loan.

(E)      As a material  inducement  to AmeriNet's  consideration  of agreeing to
         issue  restricted  stock  to Xcel as  stated  in  paragraph  (C),  Xcel
         represents, warrants and covenants to AmeriNet, as follows:

         (1)      Xcel is familiar  with the  requirements  for  treatment as an
                  "accredited  investor" under  Regulation D and Section 4(6) of
                  the Securities Act and meets one or more of the definitions of
                  an "accredited  investor" contained in Rule 501(a) promulgated
                  under  authority of Securities  Act and has, alone or together
                  with its advisors or  representatives,  if any, such knowledge
                  and experience in financial  matters that.  Xcel is capable of
                  evaluating the relative risks and merits of this subscription,
                  the text of Rule 501(a) being set forth, in full, above;

         (2)      Xcel  acknowledges  that it has, based on its own  substantial
                  experience,   the   ability  to  evaluate   the   transactions
                  contemplated  hereby  and the  merits  and  risks  thereof  in
                  general  and  the  suitability  of the  transaction  for it in
                  particular;

         (3)      (a)      Xcel  understands  that  the  offer  and  issuance of
                           the  AmeriNet  Stock is  being  made in  reliance  on
                           Xcel's  representation  that it has  reviewed  all of
                           AmeriNet's  reports filed with the Commission  during
                           the past 12 months  and  posted  on the  Commission's
                           Internet  web  site  (www.sec.gov)  under  the  EDGAR
                           Archives sub site,  and has become  familiar with the
                           information   disclosed   therein,   including   that
                           contained in exhibits filed with such reports.

                  (b)      Xcel is fully aware of the material risks  associated
                           with  becoming an investor in AmeriNet  and  confirms
                           that it was  previously  informed that all documents,
                           records and books  pertaining to this investment have
                           been  available from AmeriNet and that all documents,
                           records  and  books  pertaining  to this  transaction
                           requested by her have been made available to her;

                                     Page 6
<PAGE>

         (4)      Xcel has had an  opportunity  to ask  questions of and receive
                  answers from the officers of AmeriNet concerning the terms and
                  conditions of this Agreement and the transactions contemplated
                  hereby,  as  well  as the  affairs  of  AmeriNet  and  related
                  matters;

         (5)      Xcel has had an opportunity to obtain  additional  information
                  necessary to verify the accuracy of the  information  referred
                  to in subparagraphs  (a), (b), (c) and (d) hereof,  as well as
                  to supplement the information in the Exchange Act Reports.

         (6)      Xcel has  represented to Xcel that it has the general  ability
                  to bear the risks of the subject  transaction and that Xcel is
                  a suitable  investor  for a private  offering  and Xcel hereby
                  affirms the correctness of such information to AmeriNet.

         (7)      Xcel acknowledges and is aware that:

                  (a)      The AmeriNet Stock is a speculative  investment  with
                           no assurance that AmeriNet will be successful,  or if
                           successful, that such success will result in payments
                           to Xcel or to realization of capital gains by Xcel on
                           disposition of the AmeriNet Stock; and

                  (b)      The  AmeriNet  Stock to be issued to her has not been
                           registered  under  the  Securities  Act or under  any
                           state securities  laws,  accordingly Xcel may have to
                           hold  such  common  stock  and  may  not be  able  to
                           liquidate,  pledge,  hypothecate,  assign or transfer
                           it;

         (8)      Xcel has obtained  its own opinion  from its legal  counsel to
                  the  effect  that  after an  examination  of the  transactions
                  associated herewith and the applicable law, no action needs to
                  be taken by Xcel in  conjunction  with this Agreement and  the
                  issuance  of  the AmeriNet Stock in conjunction therewith; and

         (9)      (a)      The  certificates  for  the  AmeriNet Stock will bear
                           restrictive  legends and  AmeriNet's  transfer  agent
                           will  be  instructed  not  to  transfer  the  subject
                           securities unless they have been registered  pursuant
                           to Section 6 of the  Securities  Act or an opinion of
                           counsel  to Xcel  satisfactory  to legal  counsel  to
                           AmeriNet and AmeriNet's  president has been provided,
                           to the effect that the proposed transaction is exempt
                           from   registration   requirements   imposed  by  the
                           Securities  Act, the Exchange Act and any  applicable
                           state or foreign laws.

                  (b)      The legend  shall read as  follows:  "The  securities
                           represented by this  certificate  were issued without
                           registration  under the  Securities  Act of 1933,  as
                           amended,  or comparable state laws in reliance on the
                           provisions   of  Section   4(6)  of  such  act,   and
                           comparable state law provisions. These securities may
                           not be  transferred  pledged or  hypothecated  unless
                           they are first registered  under applicable  federal,
                           state  or  foreign  laws,  or  the   transaction   is
                           demonstrated  to be exempt from such  requirements to
                           AmeriNet's satisfaction."

                                   Article III
                                   Superseder

(A)      The terms of this Agreement supersede the terms of all other agreements
         between AmeriNet and Xcel and its affiliate, including, but not limited
         to, the Warrant  Agreement,  all of which will be  henceforth  null and
         void as if they had never  been  entered  into,  this  Agreement  being
         deemed a novation, settlement accord and satisfaction of all such prior
         agreements.

(B)      In  consideration  for the  exchange of covenants  reflected  above but
         excepting only the obligations created by this Agreement,  AmeriNet and
         Xcel hereby each release,  discharge and forgive the other, and each of
         the others' subsidiaries,  affiliates,  members, officers,   directors,
         partners,  agents and employees from any and all  liabilities,  whether
         current or inchoate,  from the beginning of time until the date of this
         Agreement.

                                     Page 7
<PAGE>

                                   Article IV
                               General Provisions

4.1      Interpretation.

(A)      When a reference  is made in this  Agreement  to Schedules or Exhibits,
         such  reference  shall be to a Schedule  or  Exhibit to this  Agreement
         unless otherwise indicated.

(B)      The words "include,"  "includes" and "including" when used herein shall
         be  deemed  in  each  case  to  be  followed  by  the  words   "without
         limitation."

(C)      The headings  contained in this  Agreement are for  reference  purposes
         only and shall not affect in any way the meaning or  interpretation  of
         this Agreement.

(D)      The captions in this Agreement are for  convenience  and reference only
         and in no way  define,  describe,  extend  or limit  the  scope of this
         Agreement or the intent of any provisions hereof.

(E)      All pronouns and any variations thereof shall be deemed to refer to the
         masculine, feminine, neuter, singular or plural, as the identity of the
         Party or Parties,  or their  personal  representatives,  successors and
         assigns may require.

(F)      The Parties agree that they have been represented by counsel during the
         negotiation and execution of this Agreement and,  therefore,  waive the
         application  of any law,  regulation,  holding or rule of  construction
         providing  that  ambiguities  in an agreement or other document will be
         construed against the party drafting such agreement or document.

4.2      Notice.

(A)      All notices,  demands or other  communications given hereunder shall be
         in  writing  and shall be  deemed to have been duly  given on the first
         business day after  mailing by United  States  registered  or certified
         mail, return receipt requested, postage prepaid, addressed as follows:

         (1)      To AmeriNet:

                            AmeriNet Group.com, Inc.

        Crystal Corporate Center; 2500 North Military Trail, Suite 225-C;
                           Boca Raton, Florida 33431
                  Attention: Larry Van Etten, Interim President
                  Telephone (561) 998-3435, Fax (561) 998-4635

                            AmeriNet Group.com, Inc.

                1941 Southeast 51st Terrace; Ocala, Florida 34471
                   Attention, George Franjola, General Counsel
                  Telephone (352) 694-6661, Fax (352) 694-1325

         (2)      Xcel

                             Xcel Associates, Inc..

              224 Middle Road, 2nd floor, Hazlet, New Jersey 07730
                     Attention: Edward T. Whelan, President
                  Telephone (732) 264-3433, Fax (732) 264-5327

                                     Page 8
<PAGE>

or such other  address or to such other  person as any Party shall  designate to
the other for such purpose in the manner hereinafter set forth.

(B)      At the request of any Party,  notice will also be provided by overnight
         delivery,   facsimile   transmission  or  e-  mail,   provided  that  a
         transmission receipt is retained.

(C)      (1)      The  Parties  acknowledge  that  the Yankee Companies, Inc., a
                  Florida   corporation   ("Yankees")   serves  as  a  strategic
                  consultant  to  AmeriNet  and has acted as  scrivener  for the
                  Parties in this  transaction but that Yankees is neither a law
                  firm nor an agency subject to any  professional  regulation or
                  oversight.

         (2)      Yankees has  advised all of the Parties to retain  independent
                  legal and accounting  counsel to review this Agreement and its
                  exhibits and incorporated materials on their behalf.

         (3)      The  decision  by any Party not to use the  services  of legal
                  counsel in conjunction with this  transaction  shall be solely
                  at their own risk,  each Party  acknowledging  that applicable
                  rules of the Florida Bar prevent  AmeriNet's  general counsel,
                  who has reviewed,  approved and caused modifications on behalf
                  of AmeriNet,  from representing  anyone other than AmeriNet in
                  this transaction.

4.3      Merger of All Prior Agreements Herein.

(A)     This  instrument,  together  with  the  instruments  referred to herein,
        contains  all of the  understandings  and agreements of the Parties with
        respect to the subject matter discussed herein.

(B)     All prior agreements whether written or oral are merged herein and shall
        be of no force or effect.

4.4      Survival.

     The  several  representations,  warranties  and  covenants  of the  Parties
contained  herein  shall  survive the  execution  hereof and shall be  effective
regardless of any investigation  that may have been made or may be made by or on
behalf of any Party.

4.5      Severability.

     If any provision or any portion of any provision of this  Agreement,  other
than one of the conditions  precedent or subsequent,  or the application of such
provision  or any portion  thereof to any person or  circumstance  shall be held
invalid or  unenforceable,  the  remaining  portions of such  provision  and the
remaining  provisions of this Agreement or the  application of such provision or
portion of such  provision  as is held  invalid or  unenforceable  to persons or
circumstances  other  than those to which it is held  invalid or  unenforceable,
shall not be affected thereby.

4.6      Governing Law.

     This Agreement  shall be construed in accordance  with the  substantive and
procedural laws of the State of Delaware (other than those  regulating  Taxation
and choice of law).

                                     Page 9
<PAGE>

4.7      Indemnification.

(A)      Each Party hereby  irrevocably  agrees to indemnify  and hold the other
         Parties  harmless from any and all liabilities  and damages  (including
         legal or other expenses incidental  thereto),  contingent,  current, or
         inchoate  to which  they or any one of them  may  become  subject  as a
         direct,  indirect  or  incidental  consequence  of  any  action  by the
         indemnifying   Party  or  as  a  consequence  of  the  failure  of  the
         indemnifying  Party to act,  whether  pursuant to  requirements of this
         Agreement or otherwise.

(B)      In the event it becomes  necessary to enforce this indemnity through an
         attorney,  with or without  litigation,  the successful  Party shall be
         entitled to recover from the  indemnifying  Party,  all costs  incurred
         including  reasonable  attorneys'  fees  throughout  any  negotiations,
         trials or appeals, whether or not any suit is instituted.

4.8      Dispute Resolution.

(A)      In any action  between  the Parties to enforce any of the terms of this
         Agreement  or  any  other  matter   arising  from  this  Agreement  any
         proceedings   pertaining  directly  or  indirectly  to  the  rights  or
         obligations  of the  Parties  hereunder  shall,  to the extent  legally
         permitted, be held in Broward County, Florida, and the prevailing Party
         shall  be  entitled  to  recover  its  costs  and  expenses,  including
         reasonable attorneys' fees up to and including all negotiations, trials
         and appeals, whether or not any formal proceedings are initiated.

(B)      In the  event of any  dispute  arising  under  this  Agreement,  or the
         negotiation  thereof or inducements  to enter into the  Agreement,  the
         dispute shall,  at the request of any Party,  be  exclusively  resolved
         through the following procedures:

         (1)      (a)      First,  the  issue  shall  be  submitted to mediation
                           before a mediation service in Broward County, Florida
                           to be  selected  by lot from six  alternatives  to be
                           provided, three by AmeriNet and three by Xcel.

                  (b)      The mediation  efforts shall be concluded  within ten
                           business  days  after  their  initiation  unless  the
                           Parties  unanimously  agree to an extended  mediation
                           period;

         (2)      In the event that  mediation  does not lead to a resolution of
                  the  dispute  then at the  request of any Party,  the  Parties
                  shall  submit the  dispute to  binding  arbitration  before an
                  arbitration  service located in Broward County,  Florida to be
                  selected by lot, from six  alternatives to be provided,  three
                  by AmeriNet and three by Xcel.

         (3)      (a)      Expenses of mediation shall be borne  equally  by the
                           Parties, if successful.

                  (b)      Expenses  of  mediation,   if  unsuccessful   and  of
                           arbitration  shall be borne by the  Party or  Parties
                           against whom the arbitration decision is rendered.

                  (c)      If the terms of the arbitral award do not establish a
                           prevailing  Party,  then the expenses of unsuccessful
                           mediation and  arbitration  shall be borne equally by
                           the Parties involved.

4.9      Benefit of Agreement.

     The terms and provisions of this Agreement  shall be binding upon and inure
to  the  benefit  of  the   Parties,   their   successors,   assigns,   personal
representatives,  estate, heirs and legatees but are not intended to confer upon
any other person any rights or remedies hereunder.

4.10     Further Assurances.

     The Parties agree to do,  execute,  acknowledge  and deliver or cause to be
done,  executed,  acknowledged  or  delivered  and to perform  all such acts and
deliver all such deeds, assignments, transfers, conveyances, powers of attorney,
assurances,  stock certificates and other documents,  as may, from time to time,
be required herein to effect the intent and purpose of this Agreement.

                                     Page 10
<PAGE>

4.11     Counterparts.

(A)      This Agreement may be executed in any number of counterparts.

(B)      All   executed    counterparts    shall    constitute   one   Agreement
         notwithstanding  that  all  signatories  are  not  signatories  to  the
         original or the same counterpart.

(C)      Execution by exchange of facsimile transmission shall be deemed legally
         sufficient  to bind the  signatory;  however,  the Parties  shall,  for
         aesthetic  purposes,  prepare a fully executed original version of this
         Agreement which shall be the document filed with the Commission.

     In Witness  Whereof,  AmeriNet  and Xcel have caused this  Agreement  to be
executed by themselves or their duly authorized  respective officers,  all as of
the last date set forth below:

Signed, sealed and delivered
         In Our Presence:

                                                        AmeriNet Group.com, Inc.

_________________________________                       (A Delaware corporation)

_________________________________         By:     /s/ Larry Van Etten /s/
                                                    ____________________________
                                                     Larry Van Etten, President

         (Corporate Seal)

                                          Attest: /s/ Vanessa H. Lindsey
                                                   ____________________________
                                                  Vanessa H. Lindsey, Secretary
Dated:   May 31, 2000

State of Florida           }
County of Palm Beach       } ss.:

         On this 31 day of May, 2000,  before me, a notary public in and for the
county and state aforesaid,  personally  appeared Larry Van Etten and Vanessa H.
Lindsey,  to me known,  and known to me to be the  president  and  secretary  of
AmeriNet Group.com, Inc., the above-described corporation, and to me known to be
the  persons  who  executed  the  foregoing  instrument,  and  acknowledged  the
execution  thereof to be their  free act and deed,  and the free act and deed of
AmeriNet Group.com, Inc., for the uses and purposes therein mentioned.

         In witness whereof, I have hereunto set my hand and affixed my notarial
seal the day and year in this  certificate  first above  written.  My commission
expires the 21 day of April, 2004.

                                                /s/ Charles Scimeca
         {Seal}                             --------------------------------
                                                   Notary Public

                                    Page 11
<PAGE>

                                                           Xcel Associates, Inc.

_________________________________                     (a New Jersey corporation)

_________________________________         By:     /s/ Edward T. Whelan
                                                  _____________________________
                                                    Edward T. Whelan, President

         (Corporate Seal)

                                          Attest: /s/ Edward J. Meyer, Jr.
                                                  _____________________________
                                                  Edward J. Meyer, Jr. Secretary

Dated:   May 30, 2000

State of New Jersey        }
County of Monmouth         } ss.:

     On this 30th day of May,  2000,  before me, a notary  public in and for the
county and state aforesaid,  personally  appeared Edward T. Whelan and Edward J.
Meyer,  Jr., to me known,  and known to me to be the  president and secretary of
Xcel Associates,  Inc.., the above-described  corporation, and to me known to be
the  persons  who  executed  the  foregoing  instrument,  and  acknowledged  the
execution  thereof to be their  free act and deed,  and the free act and deed of
Xcel Associates, Inc.., for the uses and purposes therein mentioned.

     In witness  whereof,  I have  hereunto  set my hand and affixed my notarial
seal the day and year in this  certificate  first above  written.  My commission
expires the 30th day of May, 2000.

         (Seal)                                        /s/ Joseph P. Pasqualetto
                                                  ----------------------------
                                                        Attorney at Law of N.J.

                                     Page 12

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