Document:

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                                                                   EXHIBIT 10.14

                                LEASE AGREEMENT

LESSOR: MOACYR THEODORO DE CARVALHO, Brazilian citizen, married, owner, bearer
of the identificadon Card (RG) no. 1.524.337 and registered with the Brazilian
Treasury Department as an Individual Taxpayer (CPF/MF) under no. 210.282.818-20,
resident and domiciled at Rua Dr. Vieira Bueno, no. 374, Cambui, in Campinas,
Sao Paulo.

LESSEE: TELECT DO BRASIL LTDA., company registered with the National Directory
of Legal Entities of the Brazilian Treasury Department (CNPJ/MF) under no.
03.425.450/0001-14, with head office at Avenida Paulista, no. 1294, 8th floor,
Sao Paulo/SP, by its delegated manager, MARTA DE ARAUJO RODRIGUES, Brazilian
citizen, attorney, divorced, bearer of the Identification Card (RG) no.
22.661.111-5 SSP/SP and registered with the Brazilian Treasury Department as an
Individual Taxpayer (CIC/MF) under no. 146.933.088-11, domiciled at Avenida
Paulista, no. 1294, 8th floor, Sao Paulo/SP.

The signers hereto, identified above, hereinafter simply referred to as LESSOR
AND LESSEE have mutually agreed, in the best form of the law, on the following,
which they reciprocally accept and grant, to wit:

1.      The LESSOR is the owner of the real estate property located at Rua
        Domingos Cazotd, no. 350, Jardim Santa Genebra, in Campinas/SP, acquired
        pursuant to registration no. R4/70.383, of enrollment no. 70.383 of the
        2nd Real Estate Notary Office of the Judicial District of Campinas, and
        leases it to the LESSEE through the conditions to be stipulated as
        follows.

2.      The lease term is for thirty-six (36) months, starting on 02/01/2000,
        and shall terminate on 12/31/2002.

3.      The monthly rent is for R$ 12,000.00 (twelve thousand Brazilian reais).

        PARAGRAPH ONE -- The rent shall be adjusted annually, calculated by the
variation of the General Market Price Index (IPC-M), or another rate that comes
to substitute it.

        PARAGRAPH TWO -- LESSOR and LESSEE henceforth agree that the rent
adjustment frequency shall be reduced to the minimum period of time permitted by
Law, should there be an alteration to the limitation which is referred to in the
legislation in force, which is never less than one month.

        PARAGRAPH THREE -- The rent shall be paid up to the 1st of month
subsequent to the month owed, through a deposit into the checking account of the
lessor, under no. 035.234-40, with Banco Cidade (244) Branch 14, the deposit
receipts service as payment receipts.

        PARAGRAPH FOUR -- The payments made by check, that shall be issued
exclusively by the LESSEE, shall be accepted in pro-solvendo character, and
shall only produce the effects of clearance when they are actually paid by the
banking institution.

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        PARAGRAPH FIVE -- Any bonus, discount, abatement, or reduction conceded
to the LESSEE in the value of the rent or fine, as well as the receiving of the
rents on a day that is different from the one above set forth, be them initially
or after the periodic adjustments, even repeated time, the frequency not being
important, shall be a mere liberality on the part of LESSOR, not characterizing
a modification of this agreement or novation, and not creating any right for the
LESSEE, it being the right of the LESSOR, at any time and independent of notice,
to demand the full value on the day that was agreed upon.

        PARAGRAPH SIX -- The LESSOR concedes to the LESSEE, irreversible and
irrevocably, during the first twelve (12) months that this lease is in force, a
discount equal to R$ 2,000.00 (two thousand Brazilian reais) per month on the
value of the rent owed pursuant the provision in the caption of this clause, due
to the investments to be made by the LESSEE on the real estate property.

4.      Whenever the rent is paid late, in any hypothesis, a fine shall be
        levied of ten percent (10%) interest of one percent (1%) per month,
        daily monetary restatement calculated based on the variation of the same
        rate stipulated for the restatement of the rent value, for the month
        prior to the debt.

        SOLE PARAGRAPH -- The failure to pay the rent or other charges
punctually on the due dates, shall place the LESSEE itself in ARREARS,
regardless of any notice, summons, or judicial or extra-judicial warning,
raising the right for judgment of CLEARANCE ACTION DUE TO FAILURE TO PAY.

5.      All that is owed due to this agreement and not bear the executive
        process, shall be charged by the competent judicial action, being that
        the debtor it will be the responsible in both cases, for attorneys fees
        that the creditor amasses for the reservation of its rights, that shall
        be calculated on a 20% basis on the value of the debt or judgment, as
        well as the court and extra-judicial cost that are verified.

        SOLE PARAGRAPH -- In the event of a judicial procedure of CLEARANCE,
EXECUTION, or COLLECTION of any debts, a monetary restatement on each
installment charge shall always be levied, from the respective due date, in
addition to interest rates of 1% per month, including those cases in which a
PURGING OF ARREARS is permitted.

ADDITIONAL LEASE CHARGES

6.      All of the normal lease expenses and charges, water, electricity, gas
        consumption, including the Building and Urban Land Tax -- IPTU, shall be
        paid by the LESSEE.

        PARAGRAPH ONE -- The installment for the Building and Urban Land Tax --
IPTU for each month shall be paid by the LESSEE, along with the rent payment for
the previous month, on the day that it is due (paragraph three of clause three),
regardless of the day of the month determined by the City Government for the
payment of the Tax, the LESSOR should notify as to the value at least ten (10)
days in advance.

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        PARAGRAPH TWO -- The other charges and expenses that are referred to in
the caption of this clause, that are not for the IPTU, shall be paid directly by
the LESSEE, on the respective due dates, the proofs of payment should be
presented to the LESSOR whenever requested, the refusal to do so shall be
characterized as a contractual infraction, raising the right of termination and
the collection of a fine.

CONSERVATION OF THE REAL ESTATE PROPERTY AND IMPROVEMENTS

7.      The property is being delivered in the terms of the PRIOR INSPECTION,
        that is a part of this instrument, duly signed by the parties. The
        LESSEE undertakes, at the end of the agreement and with the delivery of
        the keys, to provide the painting in the two coats and in the color that
        are already there, as well as to substitute the damaged installations,
        the expenses for such reforms being its entire responsibility, without
        any right to indemnification, restitution, or retention.

8.      Any damage caused to the property or its installations, as well as the
        expenses that the LESSOR is obliged to in order to restore possible
        modifications made to the property by the LESSEE shall not be covered in
        the fine stipulated herein, but shall be paid separately.

9.      The LESSEE is not authorized to make any improvement to the property,
        except for those with regards to security and conservation of the
        property (necessaries, Brazilian Civil Code, Article 63, paragraph 3),
        keeping it in good conditions of hygiene and cleanliness, with the
        sanitary equipment, paint, windows, marble, closures, faucets, sinks,
        bathrooms, drains, and other installations and accessories in the state
        described in the PRIOR INSPECTION that is a full part hereto for all
        effects, in order to thus restore them at the time that this agreement
        ends or is terminated.

        SOLE PARAGRAPH -- The LESSEE shall not have the right to any
indemnification for the improvements that it may make, even when authorized to
do so, not even the retention of the property, these rights are expressly waived
by the LESSEE, pursuant to what is provided for in Article 35 of Law no.
8.245/91.

10.     The LESSEE henceforth grants the LESSOR the right to examine or inspect
        the leased property, whenever the latter finds it convenient, on dates
        and times scheduled in advance between the parties.

11.     The LESSEE undertakes to buy insurance against fire for the leased
        property, using an insurance company of good standing, in the value of
        one hundred (100) times the nominal value of the rent, the expenses
        arising there from being its own expense, the policy being issued in the
        name of the LESSOR. The insurance should be renewed by the LESSEE
        whenever the period contracted with the insurance company expires, for
        the true value of the property at the time, regardless o the value of
        the rent that is being paid at the time, in such a manner as to insure
        that the property is always covered, even though the lease may be in
        force for an undetermined period of time.

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        SOLE PARAGRAPH -- The non-fulfillment of the obligation in the caption
of this clause shall give rise to the termination of this agreement, the LESSEE
being further subject to the penalties stipulated herein, in addition to the
liability for losses and damages, in those cases.

GUARANTEE

12.     The LESSEE undertakes for a period of thirty (30) days to provide a
        guarantee that is sufficient for insuring the payment of the contractual
        obligations assumed herein, which may be in the form of an insurance
        guarantee, a banking letter guarantee, or a deposit guarantee.

PENALTIES

13.     The party that infringes on this agreement, on any one of its clauses,
        shall pay the other a fine equivalent to three (03) rents in force at
        the time of the infraction, the innocent party has the right to
        simultaneously consider the lease as terminated, regardless of any
        formality.

        SOLE PARAGRAPH -- The LESSEE hence has the right to vacate the premises,
without it being considered an infraction, after twelve (12) months of the
initial term of this agreement have lapsed.

RESTITUTION OF THE PROPERTY

14.     Upon proceeding with the vacating of the property, the LESSEE undertakes
        to exhibit, duly paid, the proof for the expenses for the last six (06)
        months for the fees and tariffs for water, sewage, and light due until
        the date of the actual vacating. In the event that it has not received
        the respective notices at the time of the vacating, the LESSEE shall
        leave at the disposal of the LESSOR an amount equal to three (3) of the
        last payments made, for each month of consumption that has not been
        paid. If there is a difference in the favor of the LESSEE, die money
        shall be returned to it with the presentation of the competent
        clearances. If the difference is in favor of the LESSOR, it shall be
        reimbursed in twenty-four (24) hours, with the presentation of the
        respective clearances.

15.     The LESSOR is hereby granted the right to refuse to accept the keys for
        the property if it is not presented in the conditions stipulated herein
        or in the inspection that is a part hereto, and during this period the
        rent shall continue to be paid normally by the LESSEE.

        SOLE PARAGRAPH -- In the event that the LESSOR needs to make repairs or
substitutions of any installation in the property, the liability of the LESSEE
for said expenses and for the rents and charges shall be substituted by the time
necessary to carry out the same.

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GENERAL CONDITIONS

16.     The LESSEE undertakes to satisfy all of the demands of the public powers
        that are necessary, nor to make modifications or transformations on the
        building, without the written authorization from the LESSOR.

17.     Citation from the public health services shall not be a motive for the
        LESSEE to abandon the property or terminate the agreement, save a prior
        judicial inspection that proves that the construction is threatening
        destruction.

18.     In the event of the expropriation of the real estate, the LESSOR is no
        longer bound to the clauses of this agreement, the LESSEE retains the
        right only to have the expropriating power to the indemnification to
        which it has a right.

19.     The leased property is destined exclusively for INDUSTRIAL USE, its
        usage may not be changed without the express consent of the LESSOR.

20.     The connection of the electricity in the property should be requested
        directly to "CPFL" by the LESSEE, being that the rent that is normally
        due in the period that proceeds the connection, regardless of any
        possible delay in that company to turn it on. In the event that the
        electricity is already connected at the time of the lease, the LESSEE
        undertakes to request the transfer of the connection to its name from
        "CPFL", which should be done \within the maximum term of thirty (30)
        days, under the penalty of incurring the penalties stipulated herein.

        SOLE PARAGRAPH -- Should the construction of a primary power cabin be
necessary, and the corresponding connection, all of the costs shall be fully the
responsibility of the LESSEE.

21.     For all the questions arising herefrom, the jurisdiction of the location
        of the property shall be competent, no matter what the domicile is for
        the contracting parties.

        SOLE PARAGRAPH -- The citation, summons, or notification in any actions
referring to the lease hereby contracted, shall be made via correspondence with
notice of receipt, telex, or fax.

In witness whereof, the parties sign this agreement in two (02) counterparts in
equal tenor, in the presence of the undersigned witnesses.

                          Campinas, January 27th, 2000.

                       -----------------------------------
                           MOACYR THEODORO DE CARVALHO

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                       -----------------------------------
                             TELECT DO BRASIL LTDA.
                            Marta de Aradjo Rodrigues
                                Delegated Manager

Witnesses:

----------------------------------------------------------
Edie Celso Lopes Guimaraes
Individual Taxpayer Registration (CPF) no.: 721.124.848-34
Identification Card (RG) no.: 7.418.358 SSP/SP

----------------------------------------------------------
Adaira Aparecida Rodrigues
Individual Taxpayer Registration (CPF) no.: 246.060.628-19
Identification Card (RG) no.: 26.644.193-2 SSP/SP

                                       6<PAGE>   1
                                                                   EXHIBIT 10.15

                            BUSINESS LOAN AGREEMENT

This Business Loan Agreement ("Agreement") is made between Bank of America NT &
SA doing business as Seafirst Bank ("Bank") and Telect, Inc. ("Borrower") with
respect to the following:

                                     PART A

1.      Line of Credit #8806237054-331. Subject to the terms of this Agreement,
        Bank will make loans to Borrower under a [X] revolving [ ] non-revolving
        line of credit as follows:

        (a)     TOTAL AMOUNT AVAILABLE: $20,000,000.00

        [ ]     Subject to the provisions of any accounts receivable and/or
                inventory borrowing plan required herein; it is expressly
                understood that collateral ineligible for borrowing purposes is
                determined solely by Bank.

        [ ]     Subject to (describe): N/A.

        (b)     AVAILABILITY PERIOD: March 1, 1999 through September 1, 1999.
                However, if loans are made and/or new promissory notes executed
                after the last date, such advances will be subject to the terms
                of this Agreement until repaid in full unless a written
                statement signed by the Bank and Borrower provides otherwise, or
                a replacement loan agreement is executed. The making of such
                additional advances alone, however, does not constitute a
                commitment by the bank to make any further advances or extend
                the availability period.

        (c)     INTEREST RATE:

                [X]     Banks publicly announced Reference Rate plus -0- percent
                        of the principal per annum. "Reference Rate" means the
                        rate of interest publicly announced from time to time by
                        Bank in San Francisco, California as its "Reference
                        Rate." The Reference Rate is set based on various
                        factors including Bank's cost and desired return,
                        general economic conditions, and other factors, and is
                        used as a reference point for pricing some loans. Bank
                        may price loans to its customers at, above, or below the
                        Reference Rate. Any change in the Reference Rate shall
                        take effect at the opening of business on the day
                        specified in the public announcement of a change in the
                        Reference Rate. [X] or, LIBOR plus 190 basis points
                        fixed for 30 to 180 days.

        (d)     INTEREST RATE BASIS. All interest will be calculated at the per
                annum interest rate based on 360-day period and applied to the
                actual number of days elapsed.

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        (e)     REPAYMENT: At the times and in amounts as set forth in note(s)
                required under Part B Article 1 of this Agreement.

        (f)     LOAN FEE: N/A payable on N/A.

        (g)     FEE ON UNUTILIZED PORTION OF LINE: On N/A and every N/A
                thereafter, Borrower shall pay a fee based upon the average
                daily unused portion of the line of credit. This fee will be
                calculated as follows: N/A

        (h)     OTHER FEE(S) (IDENTIFY): N/A

        (i)     COLLATERAL. This revolving line of credit shall be secured by a
                security interest, which is hereby granted, in favor of Bank on
                the following collateral: N/A. Also, collateral securing other
                loans with Bank may secure this loan.

<PAGE>   3

                                     PART B

1.      Promissory Note(s). All loans shall be evidenced by promissory notes in
        a form and substance satisfactory to Bank.

2.      Conditions to Availability of Loan/Line of Credit. Before Bank is
        obligated to disburse/make any advance, or at any time thereafter which
        Bank deems necessary and appropriate, Bank must receive all of the
        following, each of which must be in form and substance satisfactory to
        Bank ("loan documents"):

        2.1     Original, executed promissory note(s);

        2.2     Original executed security agreement(s) and/or deed(s) of trust
                covering the collateral described in Part A:

        2.3     All collateral described in Part A in which Bank wishes to have
                a possessory security interest;

        2.4     Financing statement(s) executed by Borrower;

        2.5     Such evidence that Bank may deem appropriate that the security
                interests and liens in favor of Bank are valid, enforceable, and
                prior to the rights and interests of others except those
                consented to in writing by Bank;

       +2.6     The following guaranty(ies) in favor of the Bank: N/A

       +2.7     Subordination agreement(s) in favor of Bank executed by: N/A

        2.8     Evidence that the execution, delivery, and performance by
                Borrower of this Agreement and the execution, delivery, and
                performance by Borrower and any corporate guarantor or corporate
                subordinating creditor of any instrument or agreement required
                under this Agreement, as appropriate, have been duly authorized;

        2.9     Any other document which is deemed by the Bank to be required
                from time to time to evidence loans or to effect the provisions
                of this Agreement;

        2.10    If requested by Bank, a written legal opinion expressed to Bank,
                of counsel for Borrower as to the matters set forth in sections
                3.1 and 3.2 and to the best of such counsel's knowledge after
                reasonable investigation, the matters set forth in sections 3.3,
                3.5, 3.6, 3.7, 3.9 and such other matters as the Bank may
                reasonably request;

        2.11    Pay or reimburse Bank for any out-of-pocket expenses expended in
                making or administering the loans made hereunder including
                without limitation attorney's fees (including allocation costs
                of in-house counsel);

       +2.12    Other (describe): N/A

3.      Representations and Warranties. Borrower represents and warrants to
        Bank, except as Borrower has disclosed to Bank in writing, as of the
        date of this Agreement and hereafter so long as credit granted under
        this Agreement is available and until full and final payment of all sums
        outstanding under this Agreement and promissory notes that:

       +3.1     Borrower is duly organized and existing under the laws of the
                state of its organization as a:

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        X Corporation ___ General Partnership   ___ Limited Partnership

        ____ Sole Proprietorship    ____ dba

                Borrower is properly licensed and in good standing in each state
                in which Borrower is doing business and Borrower has qualified
                under, and complied with, where required, the fictitious or
                trade name statutes of each state in which Borrower is doing
                business, and Borrower has obtained all necessary government
                approvals for its business activities; the execution, delivery,
                and performance of this Agreement and such notes and other
                instruments required herein are within Borrower's powers, have
                been duly authorized, and, as to Borrower and any guarantor, are
                not in conflict with the terms of any charter, bylaws, or other
                organization papers of Borrower, and this Agreement, such notes
                and the loan documents are valid and enforceable according to
                their terms;

        3.2     The execution, delivery, and performance of this Agreement, the
                loan documents and any other instruments are not in conflict
                with any law or any indenture, agreement or undertaking to which
                Borrower is a party or by which Borrower is bound or affected;

        3.3     Borrower has title to each of the properties and assets as
                reflected in its financial statements (except such assets which
                have been sold or otherwise disposed of in the ordinary course
                of business), and no assets or revenues of the Borrower are
                subject to any lien except as required or permitted by this
                Agreement, disclosed in its financial statements or otherwise
                previously disclosed to Bank in writing;

        3.4     All financial information, statements as to ownership of
                Borrower and all other statements submitted by Borrower to Bank,
                whether previously or in the future, are and will be true and
                correct in all material respects upon submission and are and
                will be complete upon submission insofar as may be necessary to
                give Bank a true and accurate knowledge of the subject matter
                thereof;

        3.5     Borrower has filed all tax returns and reports as required by
                law to be filed and has paid all taxes and assessments
                applicable to Borrower or to its properties which are presently
                due and payable, except those being contested in good faith;

        3.6     There are no proceedings, litigation or claims (including unpaid
                taxes) against Borrower pending or, to the knowledge of the
                Borrower, threatened, before any court or government agency, and
                no other event has occurred which may have a material adverse
                effect on Borrower's financial condition;

        3.7     There is no event which is, or with notice or lapse of time, or
                both, would be, an Event of Default (as defined in Section 7)
                under this Agreement;

       +3.8     On the basis of a comprehensive review and assessment of
                Borrower's systems and equipment and inquiry made of Borrower's
                material suppliers, vendors and customers, Borrower reasonably
                believes that the "Year 2000 problem" (that is, the inability of
                computers, as well as embedded

<PAGE>   5

                microchips in non-computing devices, to perform properly
                date-sensitive functions with respect to certain dates prior to
                and after December 31, 1999), including costs of remediation,
                will not result in a material adverse change in the operations,
                business, properties, condition (financial or otherwise) [or
                prospects] of Borrower. Borrower has developed feasible
                contingency plans adequately to ensure uninterrupted and
                unimpaired business operation in the event of failure of its own
                or a third party's systems or equipment due to the Year 2000
                problem, including those of vendors, customers, and suppliers,
                as well as a general failure of or interruption in its
                communications and delivery infrastructure.

        3.9     Borrower has exercised due diligence in inspecting Borrower's
                properties for hazardous wastes and hazardous substances. Except
                as otherwise previously disclosed and acknowledged to Bank in
                writing; (a) during the period of Borrower's ownership of
                Borrower's properties, there has been no use, generation,
                manufacture, storage, treatment, disposal, release or threatened
                release of any hazardous waste or hazardous substance by any
                person in, on, under or but any of Borrower's properties; (b)
                Borrower has no actual or constructive knowledge that there has
                been any use, generation, manufacture, storage, treatment,
                disposal, release or threatened release of any hazardous waste
                or hazardous substance by any person in, on, under or about any
                of Borrower's properties by any prior owner or occupant of any
                of Borrower's properties; and (c) Borrower has no actual or
                constructive notice of any actual or threatened litigation or
                claims of any kind by any person relating to such matters. The
                terms "hazardous waste(s)," "hazardous substance(s),"
                "disposal," "release," and "threatened release" as used in this
                Agreement shall have the same meanings as set forth in the
                Comprehensive Environmental Response, Compensation, and
                Liability Act of 1980, as mended, 42 U.S.C. Section 9601, et
                seq., the Superfund Amendments and Reauthorization Act of 1986,
                as amended, Pub. L. No. 99-499, the Hazardous Materials
                Transportation Act, as amended, 49 U.S.C. Section 1801, et seq.,
                the Resource Conservation and Recovery Act, as amended, 49
                U.S.C. Section 6901, et seq., or other applicable state or
                federal laws, rules or regulations adopted pursuant to any of
                the foregoing; and

       +3.10    Each chief place of business of Borrower, and the office or
                offices where Borrower keeps its records concerning any of the
                collateral, is located at: N. 2111 Molter Rd., Liberty Lake, WA,

4.      Affirmative Covenants. So long as credit granted under this Agreement is
        available and until full and final payment of all sums outstanding under
        this Agreement and promissory note(s) Borrower will:

       +4.1     Use the proceeds of the loans covered by this Agreement only in
                connection with Borrower's business activities and exclusively
                for the following purposes: General Corporate Purposes.

       +4.2     Maintain current assets in an amount at least equal to 1.5 times
                current liabilities, and not less than $15,000,000. Current
                assets and current

<PAGE>   6

                liabilities shall be determined in accordance with generally
                accepted accounting principles and practices, consistently
                applied;

       +4.3     Maintain a tangible net worth of at least $30,000,000 and not
                permit Borrower's total indebtedness which is not subordinated
                in a manner satisfactory to Bank to exceed 1.25 times Borrower's
                tangible net worth. "Tangible net worth" means the excess of
                total assets over total liabilities, excluding, however, from
                the determination of total assets (a) all assets which should be
                classified as intangible assets such as goodwill, patents,
                trademarks, copyrights, franchises, and deferred charges
                (including unamortized debt discount and research and
                development costs), (b) treasury stock, (c) cash held in a
                sinking or other similar fund established for the purpose of
                redemption or other retirement of capital stock, (d) to the
                extent not already deducted from total assets, reserves for
                depreciation, depletion, obsolescence or amortization of
                properties and other reserves or appropriations of retained
                earnings which have been or should be established in connection
                with the business conducted by the relevant corporation, and (e)
                any revaluation or other write-up in book value of assets
                subsequent to the fiscal year of such corporation last ended at
                the date of this Agreement;

       +4.4     Upon request Borrower agrees to insure and to furnish Bank with
                evidence of insurance covering the life of Borrower (if an
                individual) or the lives of designated partners or officers of
                Borrower (if a partnership or corporation) in the amounts stated
                below. Borrower shall take such actions as are reasonably
                requested by Bank, such as assigning the insurance policies to
                Bank or naming Bank as beneficiary and obtaining the insurer's
                acknowledgment thereof, to provide that in the event of the
                death of any of the named insureds the policy proceeds will be
                applied to payment of Borrower's obligations owing to Bank;

                Name: N/A Amount: N/A

                Name: N/A Amount: N/A

       +4.5     Promptly give written notice to Bank of: (a) all litigation and
                claims made or threatened affecting Borrower where the amount is
                $500,000 or more; (b) any substantial dispute which may exist
                between Borrower and any governmental regulatory body or law
                enforcement authority; (c) any Event of Default under this
                Agreement or any other agreement with Bank or any other creditor
                or any event which become an Event of Default; and (d) any other
                matter which has resulted or might result in a material adverse
                change in Borrower's financial condition or operations;

       +4.6     Borrower shall as soon as available, but in any event within 150
                days following the end of each Borrower's fiscal years and
                within 60 day following the end of each quarter provide to Bank,
                in a form satisfactory to Bank (including audited statements if
                required at any time by Bank), such financial statements and
                other information respecting the financial condition and
                operations of Borrower as Bank may reasonably request;

<PAGE>   7

        4.7     Borrower will maintain in effect insurance with responsible
                insurance companies in such amounts and against such risks as is
                customarily maintained by persons engaged in business similar to
                that of Borrower and all policies covering property given as
                security for the loans shall have loss payable clauses in favor
                of Bank. Borrower agrees to deliver to Bank such evidence of
                insurance as Bank may reasonably require and, within thirty (30)
                days after notice from Bank, to obtain such additional insurance
                with an insurer satisfactory to the Bank;

        4.8     Borrower will pay all indebtedness taxes and other obligations
                for which the Borrower is liable or to which its income or
                property is subject before they shall become delinquent, except
                any which is being contested by the Borrower in good faith;

        4.9     Borrower will continue to conduct its business as presently
                constituted, and will maintain and preserve all rights,
                privileges and franchises now enjoyed, conduct Borrower's
                business in an orderly, efficient and customary manner, keep all
                Borrowers properties in good working order and condition, and
                from time to time make all needed repairs, renewals or
                replacements so that the efficiency of Borrower's properties
                shall be fully maintained and preserved;

        4.10    Borrower will maintain adequate books, accounts and records and
                prepare all financial statements required hereunder in
                accordance with generally accepted accounting principles and
                practices consistently applied, and in compliance with the
                regulations of any governmental regulatory body having
                jurisdiction over Borrower or Borrower's business;

        4.11    Borrower will permit representatives of Bank to examine and make
                copies of the books and records of Borrower and to examine the
                collateral of the Borrower at reasonable times;

        4.12    Borrower will perform, on request of Bank, such acts as may be
                necessary or advisable to perfect any lien or security interest
                provided for herein or otherwise carry out the intent of this
                Agreement;

        4.13    Borrower will comply with all applicable federal, state and
                municipal laws, ordinances, rules and regulations relating to
                its properties, charters, businesses and operations, including
                compliance with all minimum funding and other requirements
                related to any of Borrower's employee benefit plans;

        4.14    Borrower will permit representatives of Bank to enter onto
                Borrower's properties to inspect and test Borrower's properties
                as Bank, in its sole discretion, may deem appropriate to
                determine Borrower's compliance with section 5.8 of this
                Agreement; provided however, that any such inspections and tests
                shall be for Bank's sole benefit and shall not be construed to
                create any responsibility or liability on the part of Bank to
                Borrower or to any third party.

5.      Negative Covenants. So long as credit granted under this Agreement is
        available and until full and final payment of all sums outstanding under
        this Agreement and promissory note(s):

<PAGE>   8

       +5.1     Borrower will not, during any fiscal year, expend or incur in
                the aggregate more than $10,000,000 for fixed assets, nor more
                than N/A for any single fixed asset whether or not payable that
                fiscal year or later under any purchase agreement or lease;

        5.2     Borrower will not, without the prior written consent of Bank,
                purchase or lease under an agreement for acquisition, incur any
                other indebtedness for borrowed money, mortgage, assign, or
                otherwise encumber any of Borrower's assets, nor sell, transfer
                or otherwise hypothecate any such assets except in the ordinary
                course of business. Borrower shall not guaranty, endorse,
                co-sign, or otherwise become liable upon the obligations of
                others, except by the endorsement of negotiable instruments for
                deposit or collection in the ordinary course of business. For
                purposes of this paragraph, the sale or assignment of accounts
                receivable, or the granting of a security interest therein,
                shall be deemed the incurring of indebtedness for borrowed
                money;

       +5.3     The total of salaries, withdrawals, or other forms of
                compensation, whether paid in cash or otherwise, by Borrower
                shall not exceed the following amounts for the persons
                indicated, nor will amounts in excess of such limits be paid to
                any other persons:

                Name: N/A
                Monthly/Yearly Amount: N/A

                Name: N/A
                Monthly/Yearly Amount: N/A

        5.4     Borrower will not, without Bank's prior written consent, declare
                any dividends on shares of its capital stock, or apply any of
                its assets to the purchase, redemption or other retirement of
                such shares, or otherwise amend its capital structure;

       +5.5     Borrower will not make any loan or advance to any person(s) or
                purchase or otherwise acquire the capital stock, assets or
                obligations of, or any interest in, any person, except:

                (a)     commercial bank time deposits maturing within one year,

                (b)     marketable general obligations of the United States or a
                        State, or marketable obligations fully guarantied by the
                        United States,

                (c)     short-term commercial paper with the highest rating of a
                        generally recognized rating service,

                (d)     other investments related to the Borrower's business
                        which, together with such other investments now
                        outstanding, do not in the aggregate exceed the sum of
                        $500,000, at any time;

        5.6     Borrower will not liquidate or dissolve or enter into any
                consolidation, merger, pool, joint venture, syndicate or other
                combination, or sell, lease, or dispose of Borrower's business
                assets as a whole or such as in the opinion of Bank constitute a
                substantial portion of Borrower's business or assets;

<PAGE>   9

        5.7     Borrower will not engage in any business activities or
                operations substantially different from or unrelated to present
                business activities or operations; and

        5.8     Borrower, and Borrower's tenants, contractors, agents or other
                parties authorized to use any of Borrower's properties, will not
                use, generate, manufacture, store, treat, dispose of, or release
                any hazardous substance or hazardous waste in, on, under or
                about any of Borrower's properties, except as previously
                disclosed to Bank in writing as provided in section 3.9; and any
                such activity shall be conducted in compliance with all
                applicable federal, state and local laws, regulations and
                ordinances, including without limitation those described in
                section 3.9.

6.      Waiver, Release and Indemnification. Borrower hereby: (a) releases and
        waives any claims against Bank for indemnity or contribution in the
        event Borrower becomes liable for cleanup or other costs under any of
        the applicable federal, state or local laws, regulations or ordinances,
        including without limitation those described in section 3.9, and (b)
        agrees to indemnify and hold Bank harmless from and against any and all
        claims, losses, liabilities, damages, penalties and expenses which Bank
        may directly or indirectly sustain or suffer resulting from a breach of
        (i) any of Borrower's representations and warranties with respect to
        hazardous wastes and hazardous substances contained in section 3.9, or
        (ii) section 5.8. The provisions of this section 6 shall survive the
        full and final payment of all sums outstanding under this Agreement and
        promissory notes and shall not be affected by Bank's acquisition of any
        interest in any of the Borrower's properties, whether by foreclosure or
        otherwise.

7.      Events of Default. The occurrence of any of the following events
        ("Events of Default") shall terminate any and all obligations on the
        part of Bank to make or continue the loan and/or line of credit and, at
        the option of Bank, shall make all sums of interest and principal
        outstanding under the loan and/or line of credit immediately due and
        payable, without notice of default, presentment or demand for payment,
        protest or notice of nonpayment or dishonor, or other notices or demands
        of any kind of character, all of which are waived by Borrower, and Bank
        may proceed with collection of such obligations and enforcement and
        realization upon all security which it may hold and to the enforcement
        of all rights hereunder or at law:

        7.1     The Borrower shall fail to pay when due any amount payable by it
                hereunder on any loans or notes executed in connection herewith.

        7.2     Borrower shall fail to comply with the provisions of any other
                covenant, obligation or term of this Agreement for a period of
                fifteen (15) days after the earlier of written notice thereof
                shall have been given to the Borrower by Bank or Borrower or any
                Guarantor has knowledge of an Event of Default or an event that
                can become an Event of Default;

        7.3     Borrower shall fail to pay when due any other obligation for
                borrowed money, or to perform any term or covenant on its part
                to be performed under any agreement relating to such obligation
                or any such other debt shall be

<PAGE>   10

                declared to be due and payable and such failure shall continue
                after the applicable grace period;

        7.4     Any representation or warranty made by Borrower in this
                Agreement or in any other statement to Bank shall prove to have
                been false or misleading in any material respect when made, or
                Borrower's representations regarding the "year 2000 problem"
                shall cease to be true, whether or not true when made, and as a
                result Bank reasonably believes that Borrower's financial
                condition or its ability to pay its debts as they come due will
                thereby be materially impaired;

        7.5     Borrower makes an assignment for the benefit of creditors, files
                a petition in bankruptcy, is adjudicated insolvent or
                bankruptcy, petitions to any court for a receiver or trustee for
                Borrower or any substantial part of its property, commences any
                proceeding relating to the arrangement, readjustment,
                reorganization or liquidation under any bankruptcy or similar
                laws, or if there is commenced against Borrower any such
                proceedings which remain undismissed for a period of thirty (30)
                days or, if Borrower by any act indicates its consent or
                acquiescence in any such proceeding or the appointment of any
                such trustee or receiver;

       +7.6     Any judgment attaches against Borrower or any of its properties
                for an amount in excess of $250,000 which remains unpaid,
                unstayed on appeal, unbonded, or undismissed for a period of
                thirty (30) days;

        7.7     Loss of any required government approvals, and/or any
                governmental regulatory authority takes or institutes action
                which, in the opinion of Bank, will adversely affect Borrower's
                condition, operations or ability to repay the loan and/or line
                of credit;

        7.8     Failure of Bank to have a legal, valid and binding first lien
                on, or a valid and enforceable prior perfected security interest
                in, any property covered by any deed of trust or security
                agreement required under this Agreement;

        7.9     Borrower dies, becomes incompetent, or ceases to exist as a
                going concern;

        7.10    Occurrence of an extraordinary situation which gives Bank
                reasonable grounds to believe that Borrower may not, or will be
                unable to, perform its obligations under this or any other
                agreement between Bank and Borrower; or

        7.11    Any of the preceding events occur with respect to any guarantor
                of credit under this Agreement, or such guarantor dies or
                becomes incompetent, unless the obligations arising under the
                guaranty and related agreements have been unconditionally
                assumed by the guarantor's estate in a manner satisfactory to
                Bank.

8.      Successors; Waivers. Notwithstanding the Events of Default above, this
        Agreement shall be binding upon and inure to the benefit of Borrower and
        Bank, their respective successors and assigns, except that Borrower may
        not assign its rights hereunder. No consent or waiver under this
        Agreement shall be effective unless in writing and signed by the Bank
        and shall not waive or affect any other default, whether prior or
        subsequent thereto, and whether of the same or different type. No delay
        or omission

<PAGE>   11
        on the part of the Bank in exercising any right shall operate as a
        waiver of such right or any other right.

9.      Arbitration.

        9.1     At the request of either Bank or Borrower any controversy or
                claim between the Bank and Borrower, arising from or relating to
                this Agreement or any Loan Document executed in connection with
                this Agreement or arising from any alleged tort shall be settled
                by arbitration in King County, Washington. The United States
                Arbitration Act will apply to the arbitration proceedings which
                will be administered by the American Arbitration Association
                under its commercial rules of arbitration exceed that unless the
                amount of the claim(s) being arbitrated exceeds $5,000,000 there
                shall be only one arbitrator. Any controversy over whether an
                issue is arbitrable hall be determined by the arbitrator(s).
                Judgment upon the arbitration award may be entered in any court
                having jurisdiction. The institution and maintenance of any
                action for judicial relief or pursuit of a provisional or
                ancillary remedy shall not constitute a waiver of the right of
                either party, including plaintiff, to submit the controversy or
                claim to arbitration if such action for judicial relief is
                contested. For purposes of the application of the statute of
                limitations the filing of an arbitration as provided herein is
                the equivalent of filing a lawsuit and the arbitrator(s) will
                have the authority to decide whether any claim or controversy is
                barred by the statute of limitations, and if s, to dismiss the
                arbitration on that basis. The parties consent to the joinder in
                the arbitration proceedings of any guarantor, hypothecator or
                other party having an interest related to the claim or
                controversy being arbitrated.

        9.2     Notwithstanding the provisions of Section 9.1, no controversy or
                claim shall be submitted to arbitration without the consent of
                all parties if at the time of the proposed submission, such
                controversy or claim arises from or relates to an obligation
                secured by real property;

        9.3     No provision of this Section 9 shall limit the right of the
                Borrower or the Bank to exercise self-help remedies such as
                setoff, foreclosure or sale of any collateral, or obtaining any
                ancillary provisional or interim remedies from a court of
                competent jurisdiction before, after or during the pendency of
                any arbitration proceeding. The exercise of any such remedy does
                not waive the right of either party to request arbitration. At
                Bank's option foreclosure under any deed of trust may be
                accomplished by exercise of the power of sale under the deed of
                trust or judicial foreclosure as a mortgage.

10.     Collection Activities, Lawsuits and Governing Law. Borrower agrees to
        pay Bank all of Bank's costs and expenses (including reasonable
        attorney's fees and the allocated cost for in-house legal services
        incurred by Bank), incurred in the documentation and administration of
        this Agreement and the loans reflected herein. The nonprevailing party
        shall, upon demand by the prevailing party, reimburse the prevailing
        party of all of its costs, expenses and reasonable attorneys' fees
        (including the allocated cost of in-house counsel) incurred in
        connection with any controversy

<PAGE>   12
        or claim between said parties relating to this Agreement or any of the
        loan documents, or to an alleged tort arising out of the transactions
        evidence by this agreement or any of the loan documents, including those
        incurred in any action, bankruptcy proceeding, arbitration or other
        alternative dispute resolution proceeding, or appeal, or in the course
        of exercising any judicial or nonjudicial remedies. If suit is
        instituted by Bank to enforce this Agreement or any of the loan
        documents, Borrower consents to the personal jurisdiction of the courts
        of the State of Washington and Federal Courts located in the State of
        Washington. Borrower further consents to the venue of this suit, being
        lain in Seattle, Washington. This Agreement and any notes and security
        agreements entered into pursuant to this Agreement shall be construed in
        accordance with the laws of the State of Washington.

+11.    Additional Provisions. Borrower agrees to the additional provisions set
        forth immediately following this Section 11 or on any "Exhibit N/A"
        attached to and hereby incorporated into Agreement. This Agreement
        supersedes all oral negotiations or agreements between Bank and Borrower
        with respect to the subject matter hereof and constitutes the entire
        understanding and Agreement of the matters set forth in this Agreement.

        11.1    Borrower shall maintain a minimum debt coverage ratio of 1.25
                times, measured annually. Debt coverage ratio is defined as
                follows: Net Income + Depreciation + Amortization/CPTLD

12.     Miscellaneous. If any provision of this Agreement is held to be invalid
        or unenforceable, then (a) such provision shall be deemed modified if
        possible, or if not possible, such provision shall be deemed stricken,
        and (b) all other provisions shall remain in full force and effect.

        12.1    If the imposition of or any change in any law, rule, or
                regulation guideline or the interpretation or application of any
                thereof by any court or administrative or governmental authority
                (including any request or policy whether or not having the force
                of law) shall impose or modify any taxes (except U.S. federal,
                state or local income or franchise taxes imposed on Bank),
                reserve requirements, capital adequacy requirements or other
                obligations which would: (a) increase the cost to Bank for
                extending or maintaining any loans and/or line of credit to
                which this Agreement relates, (b) reduce the amounts payable to
                Bank under this Agreement, such notes and other instruments, or
                (c) reduce the rate of return on Bank's capital as a consequence
                of Bank's obligations with respect to any loan and/or line of
                credit to which this Agreement relates, then Borrower agrees to
                pay Bank such additional amounts as will compensate Bank
                therefor, within five (5) days after Bank's written demand for
                such payment, which demand shall be accompanied by an
                explanation of such imposition or charge and a calculation in
                reasonable detail of the additional amounts payable by Borrower,
                which explanation and calculations shall be conclusive, absent
                manifest error.

<PAGE>   13

        12.2    Bank may sell participations in or assign this loan in whole or
                in part without notice to Borrower and Bank may provide
                information regarding the Borrower and this Agreement to any
                prospective participant or assignee. If a participation is sold
                or the loan is assigned the purchaser will have the right of set
                off against the Borrower and may enforce its interest in the
                Loan irrespective of any claims or defenses the Borrower may
                have against the Bank.

13.     Notices. Any notices shall be given in writing to the opposite party's
        signature below or as that party may otherwise specify in writing.

14.     ORAL AGREEMENTS OR ORAL COMMITMENTS TO LOAN MONEY, EXTEND CREDIT, OR TO
        FORBEAR FROM ENFORCING REPAYMENT OF A DEBT ARE NOT ENFORCEABLE UNDER
        WASHINGTON LAW.

This Business Loan Agreement (Parts A and B) executed by the parties on March 1,
1999. Borrower acknowledges having read all of the provisions of this Agreement
and Borrower agrees to its terms.

Bank of America NT&SA, D.B.A., Seafirst     Spokane & Eastern Commercial Team #1
                      (Branch/Office)

By:
   ------------------------------------------------------
   Joe Poole

Title: Vice President

Address:       601 W. Riverside, Floor 5
City, State, Zip:  Spokane, WA 99210
Phone:         (509) 353-1475
Fax:           (509) 353-1492

               TELECT, INC.
               (Borrower Name)

By:
   -----------------------------------------------------
   Harold Alexander

Title:  Vice President
Address:       2111 N. Molter Road
City, State, Zip:     Liberty Lake, WA 99019
Phone:  509 926-6000
Fax:    509 928-8462

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