Document:

<PAGE>   1
                                  EXHIBIT 10(O)

                        FIRST LEASE AMENDMENT BETWEEN
                         PINNACLE DATA SYSTEMS, INC.
                                    AND
                      DUKE REALTY LIMITED PARTNERSHIP
                           DATED JANUARY 5, 2000
<PAGE>   2

                              FIRST LEASE AMENDMENT

         THIS FIRST LEASE AMENDMENT (the "Amendment") is executed this 5TH day
of January , 2000, by and between DUKE-WEEKS REALTY LIMITED PARTNERSHIP, an
Indiana limited partnership ("Landlord") and PINNACLE DATA SYSTEMS, INC., an
Ohio corporation ("Tenant").

                               W I T N E S S E TH:

         WHEREAS, Duke Realty Limited Partnership, an Indiana limited
partnership, as predecessor in interest to Landlord and Tenant entered into a
certain lease dated March 9, 1999 (the "Lease"), whereby Tenant leased from
Landlord certain premises consisting of approximately 56, 601 rentable square
feet of space (the "Original Premises") located in an office/warehouse building
commonly known as 6600 Port Road, Groveport, OH 43125;

         WHEREAS, Landlord and Tenant desire to expand the Original Premises by
a total of approximately 56,601 rentable square feet of space which Tenant shall
commence occupancy of one-half of the Additional Space (approximately 28,301
rentable square feet of space) on February 1, 2000 and commence occupancy of the
remaining one half of the Additional Space (approximately 28,300 rentable square
feet of space) on June 1, 2000 (both halves individually and/or collectively
referred to as the "Additional Space"). Collectively, the Original Premises and
Additional Space shall hereinafter be referred to as the "Lease Premises"; and

         WHEREAS, THEREFORE, in consideration of the foregoing premises, the
mutual covenants herein contained and each act performed hereunder by the
parties, Landlord and Tenant hereby enter into this Amendment.

         1.       INCORPORATION OF RECITALs. The above recitals are hereby
                  incorporated into this Amendment as if fully set forth herein.

         2.       AMENDMENT OF ARTICLE 1. SECTION 1.01. BASIC LEASE PROVISIONS
                  AND DEFINITIONS. Commencing February 1, 2000, ARTICLE 1,
                  SECTION 1.01, subsections A, B, C, D, E, and L are hereby
                  amended as follows:

         A.       AMENDED EXHIBIT A is attached hereto and incorporated herein
                  by reference, which identifies the Original Premises and the
                  Additional Space, in lieu of EXHIBIT A attached to the Lease.

         B.       Rentable Area (02/01/00 - 05/31/00: approximately 84,902
                  rentable square feet; Rentable Area (06/01/00 - 04/30/09):
                  approximately 113,202 rentable square feet;

                  Landlord shall use commercially reasonable standards,
                  consistently applied, in determining the Rentable Area and the
                  rentable area of the Building. Landlord's

                                      -1-
<PAGE>   3

                  determination of Rentable Area shall conclusively be deemed
                  correct for all purposes hereunder.

         C.       Tenant's Proportionate Share (02/01/00 - 05/31/00):  8.33%
                  Tenant's Proportionate Share (06/01/00 - 04/30/99):  11.10%;

         D.       Minimum Annual Rent:

                  Original Premises:
                  -----------------

                  02/01/00 - 04/30/04     $202,065.60 per year
                  05/01/04 - 04/30/09     $232,630.08 per year

                  Additional Space:
                  ----------------

                  02/01/00 - 05/31/00     $ 40,281.76 (4  months)
                  06/01/00 - 04/30/01     $221,545.72 (11 months)
                  05/01/01 - 04/30/02     $266,024.76 per year
                  05/01/02 - 04/30/03     $294,325.20 per year
                  05/01/03 - 04/30/04     $324,323.76 per year
                  05/01/04 - 04/30/09     $356,586.36 per year

         E.       Monthly Rental
                  Installments:

                  Original Premises:
                  -----------------

                  02/01/99 - 04/30/04     $  16,838.80 per month
                  05/01/04 - 04/30/09     $  19,385.84 per month

                  Additional Space:
                  ----------------

                  02/01/00 - 05/31/00     $10,070.44 per month
                  06/01/00 - 04/30/00     $20,140.52 per month
                  05/01/01 - 04/30/02     $22,168.73 per month
                  05/01/02 - 04/30/03     $24,527.10 per month
                  05/01/03 - 04/30/04     $27,026.98 per month
                  05/01/04 - 04/30/09     $29,715.53 per month

         L.       Address for notices:

                  Landlord:               Duke-Weeks Realty Limited Partnership
                                          5600 Blazer Parkway, Suite 100
                                          Dublin, OH  43017
                                          Attn:  Property Manager

                                      -2-
<PAGE>   4

                  Tenant:                 Pinnacle Data Systems, Inc.
                                          6600 Port Road
                                          Groveport, OH  43125

                  Address for rental and other payment:

                                          Duke-Weeks Realty Limited Partnership
                                          P.O. Box 931998
                                          Cleveland, OH  44193

         3.      INCORPORATION INTO ARTICLE 2. CONSTRUCTION OF TENANT
IMPROVEMENTS FOR ADDITIONAL SPACE. The following shall be added to SECTION 2.02
of the Lease:

         Landlord agrees to perform and complete, at Landlord's sole cost and
expense, the work on the tenant finish improvements for the Additional Space in
accordance with the plans and specifications which have been mutually agreed
upon by both Landlord and Tenant and attached hereto as EXHIBIT B-1 (the
"Additional Space Improvements"). Upon written notice from Landlord, Tenant
shall have the right and privilege of going onto the Additional space to
complete interior decoration work and to prepare the Additional Space for its
occupancy, provided, however, that its schedule in so doing shall be
communicated to Landlord and the approval of Landlord secured so as not to
interfere with other work of Landlord being carried on at the time; and provided
further that Landlord shall have no responsibility or liability whatsoever for
any loss or damage to any of Tenant's leasehold improvements, fixtures,
equipment and any other materials installed or left in the Additional Space.

         Notwithstanding anything stated herein to the contrary, Landlord agrees
that in the event Landlord is able to complete the installation of a new
exterior dock door (as described in EXHIBIT B-1) ("Exterior Dock Work") for an
amount less than One Hundred and Seven Thousand Dollars ($107,000.00) as set
forth in EXHIBIT B-1 (such savings hereinafter referred to as "Exterior Dock
Savings"), Landlord shall reduce the Minimum Annual Rent for the Additional
Space by multiplying the Exterior Dock Savings by a factor of .095.

         4.       AMENDMENT OF SECTION 16.13. OPTION TO EXTEND. SECTION 16.13 of
the Lease is hereby deleted in its entirety and the following substituted in
lieu thereof:

         A.       GRANT AND EXERCISE OF OPTION. Provided that (i) Tenant has not
been in Default hereunder at any time during the Term of this Lease ("Original
Term"), (ii) the creditworthiness of Tenant is then acceptable to Landlord,
(iii) Tenant named herein remains in possession of and has been continuously
operating in the entire Leased Premises, throughout the Original Term and (iv)
the current use of the Leased Premises is acceptable to Landlord, Tenant shall
have one (1) option to extend the Original Term for one (1) additional period of
five (5) years (the "Extension Term"). The Extension Term shall be upon the same
terms and conditions contained in the Lease for the Original Term except (i)
Tenant shall not have any further option to extend and (ii) the Minimum Annual
Rent shall be adjusted as set forth here ("Rent Adjustment"). Tenant shall
exercise such option by delivering to Landlord, no later than nine (9) months
prior to the expiration of the Original Term, written notice of Tenant's desire
to extend the Original Term.

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<PAGE>   5

Tenant's failure to properly exe4rcise such option shall waive it. If Tenant
properly exercises its option to extend, Landlord shall notify Tenant of the
Rent Adjustment no later than ninety (90) days prior to the commencement of the
Extension Term. Tenant shall be deemed to have accepted the Rent Adjustment if
it fails to deliver to Landlord a written objection thereto within five (5)
business days after receipt thereof. If Tenant properly exercises its option to
extend, Landlord and Tenant shall execute an amendment to the Lease s(or, at
Landlord's option, a new lease on the form then in use for the Building)
reflecting the terms and conditions of the Extension Term, within thirty (30)
days after Tenant's acceptance of the Rent Adjustment.

        B.       MARKET RENT ADJUSTMENT. The Minimum Annual Rent for the
Original Premises for the Extension Term shall be Four Dollars and Seventy-Two
Cents ($4.72) per rentable square foot of the Original Premises. The Minimum
Annual Rent for the Additional Space for the Extension Term shall be Seven
Dollars and Twenty-Five Cents ($7.25) per rentable square foot of the Additional
Space. The Minimum Monthly Rent shall be an amount equal to one-twelfth (1/12)
of the Minimum Annual Rent for the Extension Term and shall be paid at the same
time and in the same manner as provided in the Lease.

         5.      DELETION OF SECTION 16.14. TENANT'S CONTINGENCY. SECTION 16.14
of the Lease is hereby deleted in its entirety and is of no further force and
effect.

         6.      INCORPORATION OF SECTION 16.16. LANDLORD'S ALLOWANCE FOR
FUTURE IMPROVEMENT. The following section is hereby incorporated into the Lease
as SECTION 16.16:

         At any time during years 1-5 of the Lease Term, Tenant may request in
writing that Landlord construct and install a hydraulic lift to service the
first and second floors of the Building ("Lift Work"). Landlord agrees to
perform such Lift Work, subject to Landlord and Tenant mutually agreeing upon
construction plans and specifications related thereto. Landlord and Tenant shall
share on a fifty-fifty basis the costs and expenses associated with the Finish
Work; provided, however, the Landlord's responsibility with respect to the Lift
Work shall not exceed Fifteen Thousand Dollars ($15,000.00). Performance of the
Lift Work is also contingent upon Tenant securing the consent and approval of
those Building tenants whose leased premises may be encroached upon as a result
of the Finish Work.

         7.      TENANT'S REPRESENTATIONS AND WARRANTIES. The undersigned
represents and warrants to Landlord that (i) Tenant is duly organized, validly
existing and in good standing in accordance with the laws of the state under
which it was organized; (ii) all action necessary to authorize the execution of
this Amendment has been taken by Tenant; and (iii) the individual executing and
delivering this Amendment on behalf of Tenant has been authorized to do so, and
such execution and delivery shall bind Tenant. Tenant, at Landlord's request,
shall provide Landlord with evidence of such authority.

         8.      EXAMINATION OF AMENDMENT. Submission of this instrument for
examination or signature to Tenant does not constitute a reservation or option,
and it is not effective until execution by and delivery to both Landlord and
Tenant.

                                      -4-
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        9.        DEFINITIONS. Except as otherwise provided herein, the
capitalized terms used in this Amendment shall have the definitions set forth in
the Lease.

       10.        INCORPORATION. This Amendment shall be incorporated into and
made a part of the Lease, and all provisions of the Lease not expressly modified
or amended hereby shall remain in full force and effect.

                                      -5-
<PAGE>   7

         IN WITNESSES WHEREOF, the parties have caused this Amendment to be
executed on the day and year first written above.

WITNESS 1:                            LANDLORD:

 /s/Jeffrey D. Palmquist              DUKE-WEEKS REALTY LIMITED
--------------------------            an Indiana limited partnership
Partnership (Signature)

Jeffrey D. Palmquist                  By:  Duke-Weeks Realty Corporation
--------------------------            its General Partner
Printed

WITNESS 2:                               By: /s/J. Kurt Dehner
                                            -------------------------------
                                            J. Kurt Dehner
 /s/ Laureen McElhaney                      Senior Vice President
--------------------------                  Columbus Industrial
Signature

Laureen McElhaney

Printed

WITNESS 1:                            TENANT:

 /s/R. Hahn                           PINNACLE DATA SYSTEMS, INC.
--------------------------            an Ohio corporation
Signature

R. Hahn                               By: /s/John D. Bair
--------------------------               ----------------------------------
Printed
                                      Printed: John D. Bair
                                              -----------------------------
WITNESS 2:                            Title:   CEO
                                             ------

 /s/Thomas J. Carr
--------------------------
Signature

Thomas J. Carr
--------------------------
Printed

                                      -6-
<PAGE>   8

STATE OF OHIO       )
                    ) SS.
COUNTY OF FRANKLIN  )

         Before me, a Notary Public in and for said County and State, personally
appeared J. Kurt Dehner, by me known and by me known to be the Senior Vice
President, Columbus Industrial of Duke-Weeks Realty Corporation, an Indiana
corporation, the general partner of Duke-Weeks Realty Limited Partnership, an
Indiana limited partnership, who acknowledged the execution of the above and
foregoing First Lease Amendment for and on behalf of said partnership.

         WITNESS my hand and Notarial Seal this 5TH day of JANUARY , 2000.

                                    /s/Laureen H. McElhaney
                                    -----------------------------------------
                                    Notary Public

                                    Laureen H. McElhaney
                                    -----------------------------------------
                                    Printed Signature

My Commission Expires:     10-19-04
                        -------------

My County of Residence:   Franklin
                        -------------

STATE OF OHIO       )
                    ) SS.
COUNTY OF FRANKLIN  )

         Before me, a Notary Public in and for said County and State, personally
appeared JOHN D. BAIR, by me known and by me known to be the CEO of Pinnacle
Data Systems, Inc., an Ohio corporation, who acknowledged the execution of the
above and foregoing First Lease Amendment for and on behalf of said corporation.

         WITNESS my hand and Notarial Seal this 5TH day of JANUARY , 2000.

                                    /s/Laureen H. McElhaney
                                    -----------------------------------------
                                    Notary Public

                                    Laureen H. McElhaney
                                    -----------------------------------------
                                    Printed Signature

My Commission Expires:     10-19-04
                        --------------

My County of Residence:   Franklin
                        --------------

                                      -7-
<PAGE>   9

                                   EXHIBIT B-1
                                   -----------

Landlord agrees to perform and complete, at Landlord's sole cost and expense,
the work itemized below.

First Floor Area
----------------

1.       Install three (3) new 6' case openings with headers along north side of
         office space.

Second Floor Area
-----------------

1.       Replace the carpeting and cove base with new, building-standard
         carpeting and cove base in one (1) office and one (1) conference room
         located at the northeast corner of the second floor office area. Color
         selection by Tenant.

2.       All remaining carpeted areas shall be thoroughly cleaned.

3.       Paint all interior office walls with one (1) coat of latex paint.

Exterior Changes
----------------

1.       Landlord shall provide an allowance of $107,000 to install a new
         exterior dock on the rear of the building, adjacent to Tenant's current
         dock area. This concrete dock area to be approximately 6'- 8' in width
         and approximately 30'- 40' in length and 48" in height. The dock area
         will be accessed by the current set of double doors, also to include
         handrails and a canopy system.

2.       Landlord shall provide an allowance of up to $10,000 towards the cost
         of fabricating and installing an exterior illuminated sign, to be
         located on the front of the building over the main entrance. The sign
         shall be approved by Landlord, and shall be in accordance with all
         applicable laws of the Village of Groveport.

Future Changes
--------------

1.       Landlord shall provide an allowance of up to $15,000 towards the cost
         of installing a hydraulic lift to service the first and second floors
         of the building.<PAGE>   1

                                  EXHIBIT 10(Q)

                             BUSINESS LOAN AGREEMENT
                                     BETWEEN
                           PINNACLE DATA SYSTEMS, INC.
                                       AND
                          KEY BANK NATIONAL ASSOCIATION
                             DATED FEBRUARY 18, 2000

<PAGE>   2

                             BUSINESS LOAN AGREEMENT

THIS BUSINESS LOAN AGREEMENT between Pinnacle Data Systems, Inc. ("Borrower")
and KeyBank National association ("Lender") is made and executed on the
following terms and conditions. Borrower has received prior commercial loans
from Lender or has applied to Lender for a commercial loan or loans and other
financial accommodations, including those which may be described on any exhibit
or schedule attached to this Agreement. All such loans and financial
accommodations, together with all future loans and financial accommodations from
Lender to Borrower, are referred to in this Agreement individually as the "Loan"
and collectively as the "Loans." Borrower understands and agrees that: (a) in
granting, renewing, or extending any Loan, Lender is relying upon Borrower's
representations, warranties, and agreements, as set forth in this Agreement; (b)
the granting, renewing, or extending of any Loan by Lender at all times shall be
subject to Lender's sole judgment and discretion; and (c) all such Loans shall
be and shall remain subject to the following terms and conditions of this
Agreement.

TERM. This Agreement shall be effective as of February 18, 2000, and shall
continue thereafter until all indebtedness of Borrower to Lender has been
performed in full and the parties terminate this Agreement in writing.

DEFINITIONS. The following words shall have the following meanings when used in
this Agreement. Terms not otherwise defined in this Agreement shall have the
meanings attributed to such terms in the Uniform Commercial Code. All references
to dollar amounts shall mean amounts in lawful money of the United States of
America.

         AGREEMENT. The word "Agreement" means this Business Loan Agreement, as
         this Business Loan Agreement may be amended or modified from time to
         time, together with all exhibits and schedules attached to this
         Business Loan Agreement from time to time.

         BORROWER. The word "Borrower" means Pinnacle Data Systems, Inc. The
         word "Borrower" also includes, as applicable, all subsidiaries and
         affiliates of Borrower as provided below in the paragraph titled
         "Subsidiaries and Affiliates."

         CERCLA. The word "CERCLA" means the Comprehensive Environmental
         Response, Compensation, and Liability Act of 1980, as amended.

         COLLATERAL. The word "Collateral" means and includes without limitation
         all property and assets granted as collateral security for a Loan,
         whether real or personal property, whether granted directly or
         indirectly, whether granted now or in the future, and whether granted
         in the form of a security interest, mortgage, deed of trust,
         assignment, pledge, chattel mortgage, chattel trust, factor's lien,
         equipment trust, conditional sale, trust receipt, lien, charge, lien or
         title retention contract, lease or consignment intended as a security
         device, or any other security or lien interest whatsoever, whether
         created by law, contract, or otherwise.
<PAGE>   3

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

         EVENT OF DEFAULT. The words "Event of Default" mean and include without
         limitation any of the Events of Default set forth below in the section
         titled "EVENTS OF DEFAULT."

         GRANTOR. The word "Grantor" means and includes without limitation each
         and all of the persons or entities granting a Security interest in any
         Collateral for the indebtedness, including without limitation all
         Borrowers granting such a Security interest.

         GUARANTOR. The word "Guarantor" means and includes without limitation
         each and all of the guarantors, sureties, and accommodation parties in
         connection with any indebtedness.

         INDEBTEDNESS. The word "Indebtedness" means and includes without
         limitation all Loans, together with all other obligations, debts and
         liabilities of Borrower to Lender, or any one or more of them, as well
         as all claims by Lender against Borrower, or any one or more of them;
         whether now or hereafter existing, voluntary or involuntary, due or not
         due, absolute or contingent, liquidated or unliquidated; whether
         Borrower may be liable individually or jointly with others; whether
         Borrower may be obligated as a guarantor, surety, or otherwise; whether
         recovery upon such indebtedness may be or hereafter may become barred
         by any statute of limitations; and whether such indebtedness may be or
         hereafter may become otherwise unenforceable.

         LENDER. The word "Lender" means KeyBank National Association, its
         successors and assigns.

         LOAN. The word "Loan" or "Loans" means and includes without limitation
         any and all commercial loans and financial accommodations from Lender
         to Borrower, whether now or hereafter existing, and however evidenced,
         including without limitation those loans and financial accommodations
         described herein or described on any exhibit or schedule attached to
         this Agreement from time to time.

         NOTE. The word "Note" means and includes without limitation Borrower's
         promissory note or notes, if any, evidencing Borrower's Loan
         obligations in favor of Lender, as well as any substitute, replacement
         or refinancing note or notes thereof.

         PERMITTED LIENS. The words "Permitted Liens" mean: (a) liens and
         security interest securing indebtedness owed by Borrower to Lender; (b)
         liens for taxes, assessments, or similar charges either not yet due or
         being contested in good faith; (c) liens of materialmen, mechanics,
         warehousemen, or carriers, or other like liens

<PAGE>   4

         arising in the ordinary course of business and securing obligations
         which are not yet delinquent; (d) purchase money liens or purchase
         money security interest upon or in any property acquired or held by
         Borrower in the ordinary course of business to secure indebtedness
         outstanding on the date of this Agreement or permitted to be incurred
         under the paragraph of this Agreement titled "Indebtedness and Liens";
         (e) liens and security interest which, as of the date of this
         Agreement, have been disclosed to an approved by the Lender in writing;
         and (f) those liens and security interests which in the aggregate
         constitute an immaterial and insignificant monetary amount with respect
         to the net value of Borrower's assets.

         RELATED DOCUMENTS. The words "Related Documents" mean and include
         without limitation all promissory notes, credit agreements, loan
         agreements, environmental agreements, guaranties, security agreements,
         mortgages, deeds of trust, and all other instruments, agreements and
         documents, whether now or hereafter existing, executed in connection
         with the indebtedness.

         SECURITY AGREEMENT. The words "Security Agreement" mean and include
         without limitation any agreements, promises, covenants, arrangements,
         under understandings or other agreements. whether created by law,
         contract, or otherwise, evidencing, governing, creating a Security
         Interest.

         SECURITY INTEREST. The words "Security Interest" mean and include
         without limitation any type of collateral security, whether in the form
         of a lien, charge, mortgage, deed of trust, assignment, pledge, chattel
         mortgage, chattel trust, factors lien, equipment trust, conditional
         sale, trust receipt, lien or title retention contract, lease or
         consignment intended as a security device, or any other security or
         lien interest whatsoever, whether created by law, contract, or
         otherwise.

         SARA. The word "SARA" means the Superfund Amendments and
         Reauthorization Act of 1986 as now or hereafter amended.

CONDITIONS PRECEDENT TO EACH ADVANCE. Lender's obligation to make the Initial
Loan Advance and each subsequent Loan Advance under this Agreement shall be
subject to the fulfillment to Lender's satisfaction of all of the conditions set
forth in this Agreement and in the Related Documents.

         LOAN DOCUMENTS. Borrower shall provide to Lender in form satisfactory
         to Lender the following documents for the Loan: (a) the Note, (b)
         Security Agreements granting to Lender security interests in the
         Collateral, (c) Financing Statements perfecting Lender's Security
         Interests; (d) evidence of insurance as required below; and (e) any
         other documents required under this Agreement or by Lender or its
         counsel.

         BORROWER'S AUTHORIZATION. Borrower shall have provided in form and
         substance satisfactory to Lender proper certified resolutions, duly
         authorizing the execution

<PAGE>   5

         and delivery of this Agreement, the Note and the Related Documents, and
         such other authorizations and other documents and instruments as Lender
         or its counsel, in their sole discretion, may require.

         PAYMENT OF FEES AND EXPENSES. Borrower shall have paid to Lender all
         fees, charges, and other expenses which are then due and payable as
         specified in this Agreement or any Related Document.

         REPRESENTATIONS AND WARRANTIES. The representations and warranties set
         forth in this Agreement, in the Related Documents, and in any document
         or certificate delivered to Lender under this Agreement are true and
         correct.

         NO EVENT OF DEFAULT. There shall not exist at the time of any advance a
         condition which would constitute an Event of Default under this
         Agreement.

REPRESENTATIONS AND WARRANTIES. Borrower represents and warrants to Lender, as
of the date of this Agreement, as of the date of each disbursement of Loan
proceeds, as of the date of any renewal, extension or modification of any Loan,
and at all times any indebtedness exists:

         ORGANIZATION. Borrower is a corporation which is duly organized,
         validly existing, and in good standing under the laws of the State of
         Ohio and is validly existing and in good standing in all states in
         which Borrower is doing business. Borrower has the full power and
         authority to own its properties and to transact the businesses in which
         it is presently engaged or presently proposes to engage. Borrower also
         is duly qualified as a foreign corporation and is in good standing in
         all states in which the failure to so quality would have a material
         adverse effect on its businesses or financial condition.

         AUTHORIZATION. The execution, delivery, and performance of this
         Agreement and all Related Documents by Borrower, to the extent to be
         executed, delivered or performed by Borrower, have been duly authorized
         by all necessary action by Borrower; do not require the consent or
         approval of any other person, regulatory authority or governmental
         body; and do not conflict with, result in a violation of, or constitute
         a default under (a) any provision of its articles of incorporation or
         organization, or bylaws or code of regulations, or any agreement or
         other instrument binding upon Borrower or (b) any law, governmental
         regulation, court decree, or order applicable to Borrower.

         FINANCIAL INFORMATION. Each financial statement of Borrower supplied to
         Lender truly and completely disclosed Borrower's financial condition as
         of the date of the statement, and there has been no material adverse
         change in Borrower's financial condition subsequent to the date of the
         most recent financial statement supplied to Lender. Borrower has no
         material contingent obligations except as disclosed in such financial
         statements.

<PAGE>   6

         LEGAL EFFECT. This Agreement constitutes, and any instrument or
         agreement required hereunder to be given by Borrower when delivered
         will constitute, legal valid and binding obligations of Borrower
         enforceable against Borrower in accordance with their respective terms.

         PROPERTIES. Except as contemplated by this Agreement or as previously
         disclosed in Borrower's financial statements or in writing to Lender
         and as accepted by Lender, and except for property tax liens for taxes
         not presently due and payable, Borrower owns and has good title to all
         of Borrower's properties free and clear of all Security Interests, and
         has not executed any security documents or financing statements
         relating to such properties. All of Borrower's properties are filed in
         Borrower's legal name, and Borrower has not used, or filed a financing
         statement under any other name for at least the last five (5) years.

         HAZARDOUS SUBSTANCES. The terms "hazardous waste," "hazardous
         substance," "disposal," "release," and "threatened release," as used in
         this Agreement, shall have the same meanings as set forth in the
         "CERCLA," "SARA," the Hazardous Materials Transportation Act, 49 U.S.C.
         Section 1801, at seq., the Resource Conservation and Recovery Act, 42
         U.S.C. Section 6901, at seq., or other applicable state or Federal
         laws, rules, or regulations adopted pursuant to any of the foregoing.
         Except as disclosed to and acknowledged by Lender in writing, Borrower
         represents and warrants that: (a) During the period of Borrower's
         ownership of the properties, there has been no use, generation,
         manufacture, storage, treatment, disposal, release or threatened
         release of any hazardous waste or substance by any person on, under,
         about or from any of the properties. (b) Borrower has no knowledge of,
         or reason to believe that there has been (i) any use, generation,
         manufacture, storage, treatment, disposal, release, or threatened
         release of any hazardous waste or substance on, under, about or from
         the properties by any prior owners or occupants of any of the
         properties, or (ii) any actual or threatened litigation or claims of
         any kind by any person relating to such matters. (c) Neither Borrower
         nor any tenant, contractor, agent or other authorized user of any of
         the properties shall use, generate, manufacture, store, treat, dispose
         of, or release any hazardous waste or substance on, under, about or
         from any of the properties; and any such activity shall be conducted in
         compliance with all applicable federal, state, and local laws,
         regulations, and ordinances, including without limitation those laws.
         regulations and ordinances described above. Borrower authorizes Lender
         and its agents to enter upon the properties to make such inspections
         and tests as Lender may deem appropriate to determine compliance of the
         properties with this section of the Agreement. Any inspections or tests
         made by Lender shall be at Borrower's expense and for Lender's purposes
         only and shall not be construed to create any responsibility or
         liability on the part of Lender to Borrower or to any other person. The
         representations and warranties contained herein are based on Borrower's
         due diligence in investigating the properties for hazardous waste and
         hazardous substances. Borrower hereby (a) releases and waives any
         future claims against Lender for indemnity or contribution in the event
         Borrower becomes liable for cleanup or other costs

<PAGE>   7

         under any such laws, and (b) agrees to indemnify and hold harmless
         Lender against any and all claims, losses, liabilities, damages,
         penalties, and expenses which Lender may directly or indirectly sustain
         or suffer resulting from a breach of this section of the Agreement or
         as a consequence of any use, generation, manufacture, storage,
         disposal, release or threatened release of a hazardous waste or
         substance on the properties. The provisions of this section of the
         Agreement, including the obligation to indemnity, shall survive the
         payment of the Indebtedness and the termination or expiration of this
         Agreement and shall not be affected by Lender's acquisition of any
         interest in any of the properties, whether by foreclosure or otherwise.

         LITIGATION AND CLAIMS. No litigation, claim, investigation,
         administrative proceeding or similar action (including those for unpaid
         taxes) against Borrower is pending or threatened, and no other event
         has occurred which may materially adversely affect Borrower's financial
         condition or properties, other than litigation, claims, or other
         events, if any, that have been disclosed to and acknowledged by Lender
         in writing.

         TAXES. To the best of Borrower's knowledge, all tax returns and reports
         of Borrower that are or were required to be filed, have been filed, and
         all taxes, assessments and other governmental charges have been paid in
         full, except those presently being or to be contested by Borrower in
         good faith in the ordinary course of business and for which adequate
         reserves have been provided.

         LIEN PRIORITY. Unless otherwise previously disclosed to Lender in
         writing, Borrower has not entered into or granted any Security
         Agreements, or permitted the filing or attachment of any Security
         Interests on or affecting any of the Collateral directly or indirectly
         securing repayment of Borrower's Loan and Note, that would be prior or
         that may in any way be superior to Lender's Security Interests and
         rights in and to such Collateral.

         BINDING EFFECT. This Agreement, the Note, all Security Agreements
         directly or indirectly securing repayment of Borrower's Loan and Note
         and all of the Related Documents are binding upon Borrower as well as
         upon Borrower's successors, representatives and assigns, and are
         legally enforceable in accordance with their respective terms.

         COMMERCIAL PURPOSES. Borrower intends to use the Loan proceeds solely
         for business or commercial related purposes.

         EMPLOYEE BENEFIT PLANS. Each employee benefit plan as to which Borrower
         may have any liability complies in all material respects with all
         applicable requirements of law and regulations, and (i) no Reportable
         Event nor Prohibited Transaction (as defined in ERISA) has occurred
         with respect to any such plan, (ii) Borrower has not withdrawn from any
         such plan or6fiated steps to do so, (iii) no steps have been taken to
         terminate any such plan, and (iv) there are no unfunded

<PAGE>   8

         liabilities other than those previously disclosed to Lender in writing.

         LOCATION OF BORROWER'S OFFICE AND RECORDS. Borrower's place of
         business, or Borrower's Chief executive office, if Borrower has more
         than one place of business, is located at 6600 Port Rd., Groveport. OH
         43215. Unless Borrower has designated otherwise in writing this
         location is also the office or offices where Borrower keeps its records
         concerning the Collateral.

         YEAR 2000. Borrower warrants and represents that all software utilized
         in the conduct of Borrower's business will have appropriate
         capabilities and compatibility, for operation to handle calendar dates
         falling on or after January 1, 2000, and all information pertaining to
         such calendar dates, in the same manner and with the same functionality
         as the software does respecting calendar dates falling on or before
         December 31, 1999. Further, Borrower warrants and represents that the
         data-related user interface functions, data-fields, and data-related
         program instructions and functions of the software include the
         indication of the century.

         INFORMATION. All information heretofore or contemporaneously herewith
         furnished by Borrower to Lender for the purposes of or in connection
         with this Agreement or any transaction contemplated hereby is, and all
         information hereafter furnished by or on behalf of Borrower to Lender
         will be, true and accurate in every material respect on the date as of
         which such information is dated or certified; and none of such
         information is or will be incomplete by omitting to state any material
         fact necessary to make such information not misleading.

         SURVIVAL OF REPRESENTATIONS AND WARRANTIES. Borrower understands and
         agrees that Lender, without independent investigation, is relying upon
         the above representations and warrants in extending Loan Advances to
         Borrower. Borrower further agrees that the foregoing representations
         and warranties shall be continuing in nature and shall remain in full
         force and effect until such time as Borrower's indebtedness shall be
         paid in full, or until this Agreement shall be terminated in the manner
         provided above, whichever is the last to occur.

AFFIRMATIVE COVENANTS. Borrower covenants and agrees with Lender that, while
this Agreement is in effect, Borrower will:

         LITIGATION. Promptly inform Lender in writing of (a) all material
         adverse changes in Borrower's financial condition, and (b) all existing
         and all threatened litigation, claims, investigations, administrative
         proceedings or similar actions affecting Borrower or any Guarantor
         which could materially affect the financial condition of Borrower or
         the financial condition of any Guarantor.

         FINANCIAL RECORDS. Maintain its books and records In accordance with
         generally accepted accounting principles, applied on a consistent basis
         and permit Lender to
<PAGE>   9

         examine and audit Borrower's books and records at all reasonable times.

         FINANCIAL STATEMENTS. Furnish Lender with, as soon as available but in
         no event later than one hundred twenty (120) days after the end of each
         fiscal year, Borrower's balance sheet and income statement for the year
         ended reviewed by a certified public accountant satisfactory to Lender,
         and, as soon as available, but in no event later than forty five (45)
         days after the end of each fiscal quarter, Borrower's balance sheet and
         profit and loss statement for the period ended, prepared and certified
         as correct to the best knowledge and belief by Borrower's chief
         financial officer or other officer or person acceptable to Lender. All
         financial reports required to be provided under this Agreement shall be
         prepared in accordance with generally accepted accounting principles,
         applied on a consistent basis and certified by Borrower as being true
         and correct.

         ADDITIONAL INFORMATION. Furnish such additional Information and
         statements, lists of assets and liabilities, agings of receivables and
         payables, inventory schedules, budgets, forecasts, tax returns, and
         other reports with respect to Borrower's financial condition and
         business operations as Lender may request from time to time.

         INSURANCE. Maintain fire and other risk Insurance, public liability
         insurance, and such other insurance as Lender may require with respect
         to Borrower's properties and operations, in form, amounts, coverages
         and with insurance companies reasonably acceptable to Lender. Borrower,
         upon request of Lender, will deliver to Lender from time to time the
         policies or certificates of insurance in form satisfactory to Lender,
         including stipulations that coverages will not be cancelled or
         diminished without at least ten (10) days' prior written notice to
         Lender. Each insurance policy also shall include an endorsement
         providing that coverage in favor of Lender will not be impaired in any
         way by any act, omission or default of Borrower or any other person. In
         connection with all policies covering assets in which Lender holds or
         is offered a security interest for the Loans. Borrower will provide
         Lender with such loss payable or other endorsements as Lender may
         require.

         INSURANCE REPORTS. Furnish to Lender, upon request of Lender, reports
         on each existing insurance policy showing such information as Lender
         may reasonably request, including without limitation the following: (a)
         the name of the Insurer; (b) the risks insured; (c) the amount of the
         policy; (d) the properties insured; (e) the then current property
         values on the basis of which insurance has been obtained, and the
         manner of determining those values; and (f) the expiration date of the
         policy. In addition, upon request of Lender (however not more often
         than annually), Borrower will have an independent appraiser
         satisfactory to Lender determine, as applicable, the actual cash value
         or replacement cost of any Collateral. The cost of such appraisal shall
         be paid by Borrower.

         OTHER AGREEMENTS. Comply with all terms and conditions of all other

<PAGE>   10

         agreements, whether now or hereafter existing, between Borrower and any
         other party and notify Lender immediately in writing of any default in
         connection with any other such agreements.

         LOAN PROCEEDS. Use all Loan proceeds solely for Borrower's business
         operations unless specifically consented to the contrary by Lender In
         writing.

         TAXES, CHARGES AND LIENS. Pay and discharge when due all of its
         indebtedness and obligations, including without limitation all
         assessments, taxes, governmental charges, levies and liens, of every
         kind and nature, imposed upon Borrower or its properties, income, or
         profits, prior to the date on which penalties would attach, and all
         lawful claims that, if unpaid, might become a lien or charge upon any
         of Borrower's properties, income or profits. Provided however, Borrower
         will not be required to pay and discharge any such assessment, tax,
         charge, levy, lien or claim so long as (a) the legality of the same
         shall be contested in good faith by appropriate proceedings, and (b)
         Borrower shall have established on its books adequate reserves with
         respect to such contested assessment, lax, charge, levy, lien, or claim
         in accordance with generally accepted accounting practices. Borrower,
         upon demand of Lender, will furnish to Lender evidence of payment of
         the assessments, taxes, charges, levies, liens and claims and will
         authorize the appropriate governmental official to deliver to Lender at
         any time a written statement of any assessments, taxes, charges,
         levies, liens and claims against Borrowers properties, income, or
         profits.

         PERFORMANCE. Perform and comply with all terms, conditions, and
         provisions set forth in this Agreement and in the Related manner, and
         promptly notify Lender if Borrower learns of the occurrence of any
         event which constitutes an Event of Default under this Agreement or
         under any of the Related Documents.

         OPERATIONS. Maintain executive and management personnel with
         substantially the same qualifications and experience as the present
         executive and management personnel; provide written notice to Lender of
         any change in executive and management personnel; conduct its business
         affairs in a reasonable and prudent manner and in compliance with all
         applicable federal, state and municipal laws, ordinances, rules and
         regulations respecting its properties, charters, businesses and
         operations, including without limitation, compliance with the Americans
         With Disabilities Act and with all minimum funding standards and other
         requirements of ERISA and other laws applicable to Borrower's employee
         benefit plans.

         INSPECTION. Permit employees or agents of Lender at any reasonable time
         to inspect any and all Collateral for the Loan or Loans and Borrower's
         other properties and to examine or audit Borrower's books, accounts,
         and records and to make copies and memoranda of Borrowers books,
         accounts, and records. If Borrower now or at any time hereafter
         maintains any records (including without limitation computer generated
         records and computer software programs for the

<PAGE>   11

         generation of such records) in the possession of a third party,
         Borrower, upon request of Lender, shall notify such party to permit
         Lender free access to such records at all reasonable times and to
         provide Lender with copies of any records it may request, all at
         Borrower's expense.

         COMPLIANCE CERTIFICATE. Unless waived in writing by Lender, provide
         Lender at least annually and at the time of each disbursement of Loan
         proceeds with a certificate executed by Borrower's chief financial
         officer, or other officer or person acceptable to Lender, certifying
         that the representations and warranties set forth in this Agreement are
         true and correct as of the date of the certificate and further
         certifying that as of the date of the certificate, no Event of Default
         exists under this Agreement.

         ENVIRONMENTAL COMPLIANCE AND REPORTS. Borrower shall comply in all
         respects with all environmental protection federal, state and local
         laws, statutes, regulations and ordinances; not cause or permit to
         exist, as a result of an intentional or unintentional action or
         omission on its part or on the part of any third party, on property
         owned and/or occupied by Borrower, any environmental activity where
         damage may result to the environment, unless such environmental
         activity is pursuant to and in compliance with the conditions of a
         permit issued by the appropriate federal, state or local governmental
         authorities; shall furnish to Lender promptly and in any event within
         thirty (30) days after receipt thereof a copy of any notice, summons,
         lien, citation, directive, letter or other communication from any
         governmental agency or Instrumentality concerning any Intentional or
         unintentional action or omission on Borrower's part in connection with
         any environmental activity whether or not there is damage to the
         environment and/or other natural resources.

         ADDITIONAL ASSURANCES. Make, execute and deliver to Lender such
         promissory notes, mortgages, deeds of trust, security agreements,
         financing statements, Instruments, documents and other agreements as
         Lender or its attorneys may reasonably request to evidence and secure
         the Loans and to perfect all Security Interests.

RECOVERY OF ADDITIONAL COSTS. If the imposition of or any change in any law,
rule, regulation or guideline, or the interpretation or application of any
thereof by any court of administrative or governmental authority (including any
request or policy not having the force of law) shall impose, modify or make
applicable any taxes (except U.S. federal, state or local income or franchise
taxes imposed on Lender), reserve requirements, capital adequacy requirements or
other obligations which would (a) increase the cost to Lender for extending or
maintaining the credit facilities to which this Agreement relates, (b) reduce
the amounts payable to Lender under this Agreement or the Related Documents, or
(c) reduce the rate of return on Lender's capital as a consequence of Lender's
obligations with respect to the credit facilities to which this Agreement
rotates, then Borrower agrees to pay Lender such additional amounts as will
compensate Lender therefor, within five (5) days after Lender's written demand
for such payment,

<PAGE>   12

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 in the absence
of manifest error.

NEGATIVE COVENANTS. Borrower covenants and agrees with Lender that while this
Agreement is in effect, Borrower shall not, without the prior written consent of
Lender.

         INDEBTEDNESS AND LIENs. (a) except for trade debt incurred in the
normal course of business and indebtedness to Lender contemplated by this
Agreement, create, incur or assume indebtedness for borrowed money, including
capital leases. (b) except as allowed as a Permitted Lien, sell, transfer.
mortgage, assign. pledge. lease. grant a security Interest In, or encumber any
of Borrower's assets, or (c) sell with recourse any of Borrower's accounts,
except to Lender.

         CONTINUITY OF OPERATIONS. (a) Engage In any business activities
substantially different than those in which Borrower is presently engaged, (b)
cease operations, liquidate, merge, transfer, acquire or consolidate with any
other entity, change ownership, change its name, dissolve or transfer or sell
Collateral out of the ordinary course of business, (c) pay any dividends on
Borrower's stock (other than dividends payable in its stock), provided, however
that notwithstanding the foregoing, but only so long as no Event of Default has
occurred and is continuing or would result from the payment of dividends, if
Borrower is a "Subchapter S Corporation" (as defined in the Internal Revenue
Code of 1986, as amended), Borrower may pay cash dividends on its stock to its
shareholders from time to time in amounts necessary to enable the shareholders
to pay income taxes and make estimated income tax payments to satisfy their
liabilities under federal and state law which arise solely from their status as
Shareholders of a Subchapter S Corporation because of their ownership of shares
of stock of Borrower, or (d) purchase or retire any of Borrower's outstanding
shares or alter or amend Borrower's capital structure.

         LOANS, ACQUISITIONS AND GUARANTIES. (a) Loan, invest in or advance
money or assets, (b) purchase, create or acquire any interest in any other
enterprise or entity, or (c) Incur any obligation as surety or guarantor other
than in the ordinary course of business.

CESSATION OF ADVANCES. If Lender has made any commitment to make any Loan to
Borrower, whether under this Agreement or under any other agreement, Lender
shall have no obligation to make Loan Advances or to disburse Loan proceeds if:
(a) Borrower or any Guarantor is in default under the terms of this Agreement or
any of the Related Documents or any other agreement that Borrower or any
Guarantor has with Lender; (b) Borrower or any Guarantor becomes insolvent,
files a petition in bankruptcy or similar proceedings, or is adjudged a
bankrupt, (c) there occurs a material adverse change in Borrower's financial
condition, in the financial condition of any Guarantor, or in the value of any
Collateral securing any Loan; (d) any Guarantor seeks, claims or otherwise
attempts to limit, modify or revoke such Guarantor's guaranty of the Loan or any
other loan with Lender; or (e) Lender in good faith deems itself insecure, even
though no Event of Default shall have occurred.

<PAGE>   13

FINANCIAL COVENANTS AND ADDITIONAL DEFINITIONS. Borrower shall comply with all
covenants and ratios:
TOTAL DEBT/TANGIBLE NET WORTH RATIO Borrower shall maintain a ratio of Total
Debt to Tangible Net Worth of less than 2.50 to 1.00; calculated at the end of
each quarterly. The words "Tangible Net Worth" mean Borrower's total assets
excluding all intangible assets (i.e., goodwill, trademarks. patents,
copyrights, organizational expenses, and similar intangible items, but including
leaseholds and leasehold improvements) less Total Debt. The words "Total Debt"
mean all of Borrower's liabilities including Subordinated Debt. The words
"Subordinated Debt" mean indebtedness and liabilities of Borrower which have
been subordinated by written agreement to indebtedness owed by Borrower to
Lender in form and substance acceptable to Lender.

OPERATING CASH FLOW TO TOTAL FIXED CHARGE RATIO Borrower shall maintain a ratio
of Operating Cash Flow to Total Fixed Charges of not ins than 1.20 to 1.00;
calculated at the end of each quarter for the preceding 12-month period. The
words "Operating Cash Flow" mean not income after taxes and exclusive of
extraordinary gains and losses and gains on asset sales and other Income, plus
depreciation, amortization, interest expense and lease expense, less dividends
and distributions. The words "Total Fixed Charges" mean interest expense, plus
current maturities of long-term debt and current maturities of capital leases,
plus lease expenses, plus preferred stock dividends, plus Capital Expenditures
(calculated for the preceding, twelve-month period.) The words "Capital
Expenditure" mean current period not fixed assets less prior period not find
assets, plus current period depreciation.

EVENTS OF DEFAULT. Each of the following shall constitute an Event of Default
under this Agreement.
DEFAULT AN INDEBTEDNESS. Failure of Borrower to make any payment when due on the
Loans.
OTHER DEFAULTS. Failure of Borrower or any Grantor to comply with or to perform
when due any other term, obligation, covenant or condition contained in this
Agreement or in any of the Related Documents, or failure of Borrower to comply
with or to perform any other term, obligation, covenant or condition contained
in any other agreement between Lender and Borrower.
DEFAULT IN FAVOR OF THIRD PARTIES. Should Borrower or any Grantor default under
any loan, extension of credit, security agreement, purchase or sales agreement,
or any other agreement in favor of any other creditor or person that may
materially affect any of Borrower's property or Borrower's or any Grantor's
ability to repay the Loans or perform their respective obligations under this
Agreement or any of the Related Documents.
FALSE STATEMENTS. Any warranty, representation or statement made or furnished to
Lender by or on behalf of Borrower or any Grantor under this Agreement or the
Related Documents is false or misleading in any material respect at the time
made or furnished, or becomes false or misleading at any time thereafter.
DETECTIVE COLLATERALIZATION. This Agreement or any of the Related Documents
ceases to be in full force and effect (including failure of any Security
Agreement to create a valid and perfected Security Interest) at any time and for
any reason.
INSOLVENCY The dissolution or termination of Borrower's existence as a going
business.

<PAGE>   14

the Insolvency of Borrower, the appointment of a receiver for
any part of Borrower's property, any assignment for the benefit of creditors,
any type of creditor workout, or the commencement of any proceeding under any
bankruptcy or insolvency laws by or against Borrower.
CREDITOR OR FORFEITURE PROCEEDINGS. Commencement of foreclosure or forfeiture
proceedings, whether by judicial proceeding, self-help, repossession or any
other method, by any creditor of Borrower, any creditor of any Grantor against
any collateral securing the Indebtedness, or by any governmental agency. This
includes a garnishment. attachment, or levy on or of any of Borrowers deposit
accounts with Lender.
EVENTS AFFECTING GUARANTOR. Any of the preceding events occurs with respect to
any Guarantor of any of the Indebtedness or any Guarantor dies or becomes
incompetent, or revokes or disputes the validity of, or liability under any
Guaranty of ft Indebtedness.
CHANGE IN OWNERSHIP. Any change in ownership of twenty-five percent (25%) or
more of the common stock of Borrower.
ADVERSE CHANGE. A material adverse change occurs in Borrower's financial
condition, or Lender believes the prospect of payment or performance of the
Indebtedness is impaired. Insecurity. Lender, in good faith. deems itself
insecure.

EFFECT OF AN EVENT OF DEFAULT. If any Event of Default shall occur, except where
otherwise provided In this Agreement or the Related Documents, all commitments
and obligations of Lender under this Agreement or the Related Documents or any
other agreement Immediately will terminate including any obligation to make Loan
Advances or disbursements), and, at Lender's option, all Indebtedness
Immediately will become due and payable, all without notice of any kind to
Borrower, except that in the case of an Event of Default of the type described
In the "Insolvency" subsection above, such acceleration shall be automatic and
not optional. In addition, Lender shall have all the rights and remedies
provided in the Related Documents or available at law, in equity, or otherwise.
Except as may be prohibited by applicable law, all of Lender's rights and
remedies shall be cumulative and may be exercised singularly or concurrently.
Election by Lender to pursue any remedy shall not exclude pursuit of any other
remedy, and an election to make expenditures or to take action to perform an
obligation of Borrower or of any Grantor shall not affect Lender's right to
declare a default and to exercise Its rights and remedies.

MISCELLANEOUS PROVISIONS. The following miscellaneous provisions we a part of
this Agreement:
AMENDMENTs. This Agreement, together with any Related Documents, constitutes the
entire understanding and agreement of the parties as to the matters set forth in
this Agreement. No alteration of or amendment to this Agreement shall be
effective unless given in writing and signed by the party or parties sought to
be charged or bound by the alteration or amendment.
APPLICABLE LAW. This Agreement has been delivered to Lender and accepted by
Lender in the State of Ohio. If there is a lawsuit, Borrower agrees upon
Lender's request to submit to the jurisdiction of the courts of Cuyahoga County,
the State of Ohio. Lender and Borrower hereby waive the right to any jury trial
in any action, proceeding, or counterclaim brought by either Lender or Borrower
against the other. This Agreement

<PAGE>   15

shall be governed by and construed In accordance with the laws of the State of
Ohio.
CAPTION HEADINGS. Caption headings in this Agreement are for convenience
purposes only and are not to be used to interpret or define the provisions of
this Agreement.
CONSENT TO LOAN PARTICIPATION. Borrower agrees and consents to Lender's sale or
transfer, whether now or later, of one or more participation interests in the
Loans to one or more purchasers, whether related or unrelated to Lender. Lender
may provide. without any limitation whatsoever, to any one or more purchasers,
or potential purchasers, any Information or knowledge Lender may have about
Borrower or about any other matter relating to the Loan, and Borrower hereby
waives any rights to privacy it may have with respect to such matters. Borrower
additionally waives any and all notices of sale of participation interests, as
well as all notices of any repurchase of such participation Interests. Borrower
also agrees that the purchasers of any such participation interests will be
considered as the absolute owners of such Interests In the Loans and will have
all the rights granted under the participation agreement or agreements governing
the sale of such participation Interests. Borrower further waives all rights of
offset or counterclaim that It may have now or later against Lender or against
any purchaser of such a participation interest and unconditionally agrees that
either Lender or such purchaser may enforce Borrower's obligation under the
Loans Irrespective of the failure or insolvency of any holder of any Interest in
the Loans. Borrower further agrees that the purchaser of any such participation
interests may enforce Its interests irrespective of any personal claims or
defenses that Borrower may have against Lender.
COSTS AND EXPENSES. Borrower agrees to pay upon demand all of Lender's expenses,
including without limitation attorneys' fees, incurred In connection with the
preparation, execution, enforcement, modification and collection of this
Agreement or in connection with the Loans made pursuant to this Agreement.
Lender may pay someone else to help collect the Loans and to enforce this
Agreement, and Borrower will pay that amount. This includes, subject to any
limits under applicable law, Lenders attorneys' fees and Lender's legal
expenses, whether or not there is a lawsuit, including attorneys' few for
bankruptcy proceedings (including efforts to modify or vacate any automatic stay
or Injunction), appeals, and any anticipated post-judgment collection services.
Borrower also will pay any court costs, in addition to all other sums provided
by law.
NOTICES. All notices required to be given under this Agreement shall be given in
writing, may be sent by telefascimile (unless otherwise required by law and
shall be effective when actually delivered or when deposited with a nationally
recognized overnight courier or deposited in the United States mail, first
class, postage prepaid, addressed to the party to whom the notice, is to be
given at the address shown above. Any party may change Its address for notices
under this Agreement by giving formal written notice to the other parties
specifying that the purpose of the notice is to change the party's address. To
the extent permitted by applicable law, if there is more than one Borrower,
notice to any Borrower will constitute notice to all Borrowers. For notice
purposes, Borrower will keep Lender informed at all times of Borrower's current
address).
SEVERABILITY. If a court of competent jurisdiction finds any provision of this
Agreement to be Invalid or unenforceable as to any person or circumstance, such
finding shall root render that provision invalid or unenforceable as to any
other persons or circumstances. If feasible, any such offending provision shall
be deemed to be modified to be within the limits of enforceability or validity;
however, if the offending provision cannot be so

<PAGE>   16
modified, it shall be stricken and all other provisions of this Agreement in all
other respects shall remain valid and enforceable.
SUBSIDIARIES & AFFILIATES OF BORROWER. To the extent the context of any
provisions of this Agreement makes it appropriate, including without limitation
any representation, warranty or covenant, the word "Borrower" as used herein
shall include all subsidiaries and affiliates of Borrower. Notwithstanding the
foregoing however, under no circumstances shall this Agreement be construed to
require Lender to make any loan or other financial accommodation to any
subsidiary or affiliate of Borrower.
SUCCESSORS AND ASSIGNS. All covenants and agreements contained by or on behalf
of Borrower shall bind its successors and assigns and shall inure to the benefit
of Lender, its successors and assigns. Borrower shall not, however, have the
right to assign its rights under this Agreement or any interest therein, without
the prior written consent of Lender.
SURVIVAL. All warranties, representations, and covenants made by Borrower in
this Agreement or in any certificate or other instrument delivered by Borrower
to Lender under this Agreement shall be considered to have been relied upon by
Lender and will survive the making of the Loan and delivery to Lender of the
Related Documents, regardless of any investigation made by Lender or on Lender's
behalf.
TIME IS OF THE ESSENCE. Time is of the essence in the performance of this
Agreement.
WAIVER. Lender shall not be deemed to have waived any rights under this
Agreement unless such waiver is given in writing and signed by Lender. No delay
or omission on the part of Lender in exercising any right shall operate as a
waiver of such right or any other right. A waiver by Lender of a provision of
this Agreement shall not prejudice or constitute a waiver of Lenders right
otherwise to demand strict compliance with that provision or any other provision
of this Agreement. No prior waiver by Lender, nor any course of dealing between
Lender and Borrower, or between Lender and any Grantor, shall constitute a
waiver of any of Lender's rights or of any obligations of Borrower or of any
Grantor as to any future transactions. Whenever the consent of Lender is
required under this Agreement, the granting of such consent by Lender in any
instance shall not constitute continuing consent in subsequent Instances where
such consent is required, and in all cases such consent may be granted or
withheld in the sole discretion of Lender.

BORROWER ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS BUSINESS LOAN
AGREEMENT, AND BORROWER AGREES TO ITS TERMS. THIS AGREEMENT IS DATED AS OF
FEBRUARY 18, 2000.

BORROWER:
Pinnacle Data Systems, Inc.

Thomas J. Carr, Chief Financial Officer and  Treasurer

LENDER:

By: Authorized Officer

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00006-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00006-of-00352.parquet"}]]