Document:

<PAGE>   1
                                                                  EXHIBIT 10(i)

                                CREDIT AGREEMENT

                                      Among

                           EAGLE USA AIRFREIGHT, INC.
                                  as Borrower,

                           THE FINANCIAL INSTITUTIONS
                         NAMED IN THIS CREDIT AGREEMENT
                                    as Banks,

                             BANK OF AMERICA, N.A.,
               as Sole and Exclusive Lead Arranger, Book Manager,
                     and Administrative Agent for the Banks,

                                 $50,000,000.00

                                January 13, 2000

<PAGE>   2

                               TABLE OF CONTENTS

<TABLE>
<S>               <C>                                                                                           <C>
    ARTICLE 1.    DEFINITIONS AND ACCOUNTING TERMS................................................................1
         1.1      Certain Defined Terms...........................................................................1
         1.2      Computation of Time Periods....................................................................20
         1.3      Singular and Plural of Definitions.............................................................20
         1.4      Money..........................................................................................20
         1.5      Captions; References...........................................................................20
         1.6      Accounting Terms and Determinations............................................................21
         1.7      Knowledge......................................................................................21
         1.8      Types..........................................................................................21
         1.9      Other Matters of Interpretation................................................................21

    ARTICLE 2.    CREDIT FACILITIES..............................................................................22
         2.1      Revolving Loan Facility........................................................................22
         2.2      Letter of Credit Facility......................................................................25
         2.3      Swing Line Facility............................................................................30
         2.4      Fees...........................................................................................32
         2.5      Revolving Loan Interest........................................................................33
         2.6      Breakage Costs.................................................................................36
         2.7      Increased Costs................................................................................36
         2.8      Illegality.....................................................................................37
         2.9      Market Failure.................................................................................38
         2.10     Payment Procedures and Computations............................................................38
         2.11     Taxes..........................................................................................40
         2.12     Change of Lending Office.......................................................................42
         2.13     Dormant Guarantors.............................................................................43

    ARTICLE 3.    CONDITIONS PRECEDENT...........................................................................44
         3.1      Conditions Precedent to Initial Extension of Credit............................................44
         3.2      Conditions to All Loans and Letters of Credit..................................................45

    ARTICLE 4.    REPRESENTATIONS AND WARRANTIES.................................................................47
         4.1      Organization...................................................................................47
         4.2      Power and Authority; Validity..................................................................48
         4.3      No Violation...................................................................................48
         4.4      Litigation.....................................................................................48
         4.5      Use of Proceeds; Margin Regulations............................................................49
         4.6      Investment Company Act.........................................................................49
         4.7      Public Utility Holding Company Act.............................................................49
         4.8      True and Complete Disclosure...................................................................49
         4.9      Financial Statements...........................................................................50
</TABLE>

                                        i

<PAGE>   3

<TABLE>
<S>               <C>                                                                                           <C>
         4.10     No Material Adverse Change.....................................................................50
         4.11     Labor Controversies............................................................................50
         4.12     Taxes..........................................................................................50
         4.13     ERISA..........................................................................................50
         4.14     Consents.......................................................................................50
         4.15     Capitalization.................................................................................51
         4.16     Ownership of Property..........................................................................51
         4.17     Compliance with Statutes.......................................................................51
         4.18     Environmental Matters..........................................................................51
         4.19     Locations......................................................................................52
         4.20     Insurance......................................................................................52
         4.21     Existing Debt and Liens........................................................................52
         4.22     Year 2000......................................................................................52
         4.23     Intellectual Property..........................................................................53

    ARTICLE 5.     COVENANTS.....................................................................................53
         5.1      Organization...................................................................................53
         5.2      Reporting......................................................................................54
         5.3      Inspection.....................................................................................55
         5.4      Use of Proceeds................................................................................55
         5.5      Financial Covenants............................................................................56
         5.6      Debt...........................................................................................56
         5.7      Liens; Negative Pledges........................................................................57
         5.8      Other Obligations..............................................................................57
         5.9      Corporate Transactions.........................................................................57
         5.10     Distributions..................................................................................58
         5.11     Transactions with Affiliates...................................................................58
         5.12     Insurance......................................................................................58
         5.13     Investments....................................................................................58
         5.14     Lines of Business..............................................................................58
         5.15     Compliance with Laws...........................................................................58
         5.16     Environmental Compliance.......................................................................59
         5.17     ERISA Compliance...............................................................................59
         5.18     Payment of Certain Claims......................................................................59
         5.19     Newly Formed Subsidiaries......................................................................59
         5.20     Offices and Files..............................................................................60
         5.21     Acquisitions...................................................................................60

    ARTICLE 6.     DEFAULT AND REMEDIES..........................................................................61
         6.1      Events of Default..............................................................................61
         6.2      Termination of Revolving Loan Commitments......................................................63
         6.3      Acceleration of Credit Obligations.............................................................64
         6.4      Cash Collateralization of Letters of Credit....................................................64
</TABLE>

                                       ii

<PAGE>   4

<TABLE>
<S>               <C>                                                                                            <C>
         6.5      Default Interest...............................................................................64
         6.6      Right of Setoff................................................................................65
         6.7      Actions Under Credit Documents.................................................................65
         6.8      Remedies Cumulative............................................................................65
         6.9      Application of Payments........................................................................65

    ARTICLE 7.    THE ADMINISTRATIVE AGENT AND THE ISSUING BANK..................................................66
         7.1      Authorization and Action.......................................................................66
         7.2      Reliance, Etc..................................................................................67
         7.3      Affiliates.....................................................................................67
         7.4      Bank Credit Decision...........................................................................68
         7.5      Expenses.......................................................................................68
         7.6      Indemnification................................................................................68
         7.7      Successor Administrative Agent and Issuing Bank................................................69

    ARTICLE 8.    MISCELLANEOUS..................................................................................69
         8.1      Expenses.......................................................................................69
         8.2      Indemnification................................................................................70
         8.3      Modifications, Waivers, and Consents...........................................................70
         8.4      Survival of Agreements.........................................................................71
         8.5      Assignment and Participation...................................................................71
         8.6      Adjustments....................................................................................74
         8.7      Change in Accounting Principles or Tax Laws....................................................75
         8.8      Acknowledgments................................................................................75
         8.9      Confidentiality................................................................................75
         8.10     Effectiveness..................................................................................76
         8.11     Notice.........................................................................................76
         8.12     Choice of Law..................................................................................76
         8.13     Forum Selection................................................................................76
         8.14     Service of Process.............................................................................77
         8.15     Jury Trial Waiver..............................................................................77
         8.16     Counterparts...................................................................................77
         8.17     No Further Agreements..........................................................................77
         8.18     ARBITRATION....................................................................................78
</TABLE>

                                       iii

<PAGE>   5

EXHIBITS

         Exhibit A   -   Form of Compliance Certificate
         Exhibit B   -   Form of Revolving Loan Borrowing Request
         Exhibit C   -   Form of Continuation/Conversion Request
         Exhibit D   -   Form of Revolving Loan Note
         Exhibit E   -   Form of Assignment and Acceptance
         Exhibit F   -   Form of Financial Condition Certificate
         Exhibit G   -   Form of Joinder Agreement
         Exhibit H   -   Form of Swing Line Note
         Exhibit I   -   Form of Subsidiary Guaranty

SCHEDULES

         Schedule I      -    Notice Information
         Schedule 2.13   -    Dormant Guarantors
         Schedule 3.4    -    List of Litigation
         Schedule 4.12   -    List of Unpaid Taxes
         Schedule 4.19   -    List of Locations
         Schedule 4.20   -    List of Insurance Coverages
         Schedule 4.21   -    List of Post-Closing Debt and Liens
         Schedule 4.23   -    Intellectual Property
         Schedule 5.1    -    List of Subsidiaries

                                       iv

<PAGE>   6

                                CREDIT AGREEMENT

         This Credit Agreement dated as of January 13, 2000, is among EAGLE USA
AIRFREIGHT, INC., a Texas corporation as Borrower; the financial institutions
named herein and from time to time made a party to this Agreement in accordance
with the terms hereof, as Banks; and BANK OF AMERICA, N.A., as Administrative
Agent for the Banks.

         The parties hereto agree as follows:

ARTICLE 1. DEFINITIONS AND ACCOUNTING TERMS.

         1.1 Certain Defined Terms. As used in this Agreement, the following
terms shall have the following meanings (unless otherwise indicated, such
meanings to be equally applicable to both the singular and plural forms of the
terms defined):

         "ACQUISITION" means a direct or indirect purchase by the Borrower or
any of its Subsidiaries after the Effective Date hereof for cash, stock, or
other securities or other property, whether in one or more related transactions,
of all or substantially all of the assets or voting securities or other equity
interests of a domestic Person or a domestic business unit, division or group of
a person, and which satisfies the applicable Acquisition Criteria.

         "ACQUISITION CONSIDERATION" means, with respect to any Acquisition, the
non-equity consideration payable by Borrower, directly or indirectly through
one of its Subsidiaries, to the sellers of that Acquisition as the purchase
price for that Acquisition. For purposes of this Agreement, the amount of
Acquisition Consideration applicable to any Acquisition shall be determined as
of the Acquisition Date thereof, in accordance with GAAP, as the total
non-equity amount paid (including amounts paid in consideration for covenants
not to compete) for that Acquisition, including, without limitation, cash, Debt
assumed or incurred, and redeemable Capital Stock which is subject to mandatory
redemption prior to the date six (6) months after the Revolving Loan Maturity
Date, but excluding the value of any Capital Stock of Borrower (other than such
mandatorily redeemable Capital Stock) issued as consideration.

         "ACQUISITION CRITERIA" means, with respect to any proposed Acquisition,
all of the following criteria:

                  (a) on the Acquisition Date of that Acquisition, and after
         giving effect thereto, no Default or Event of Default would result
         therefrom;

<PAGE>   7

                  (b) the business acquired in that Acquisition and the business
         of each of its domestic Subsidiaries, if any, consist primarily of
         operating assets or rights to use operating assets (including
         installation, maintenance, or service contract rights) in one or more
         Permitted Lines of Business;

                  (c) the Acquisition Consideration to be paid for that
         Acquisition (and its domestic Subsidiaries) is either (i)
         $25,000,000.00 or less in the aggregate, determined without duplication
         of amounts, or (ii) Approved Consideration;

                  (d) if the business acquired in that Acquisition is a domestic
         entity that will remain in existence after the acquisition, that entity
         (and each of its domestic Subsidiaries which will remain in existence
         after the Acquisition Date) will become a domestic Subsidiary of
         Borrower on the Acquisition Date; and

                  (e) all requirements of Section 5.21 in respect of that
         Acquisition shall have been, or will be, fully and timely satisfied.

         "ACQUISITION DATE" means, with respect to any Acquisition, the date on
which Borrower, directly or indirectly through one of its Subsidiaries, closes
and completes that Acquisition.

         "ADMINISTRATIVE AGENT" means Bank of America in its capacity as sole
and exclusive administrative agent, lead arranger, and book manager, any
successor to Bank of America by merger, and any successor agent pursuant to
Section 7.7.

         "AFFILIATE" means, as to any Person, any other Person that, directly or
indirectly, through one or more intermediaries controls, is controlled by, or is
under common control with, such Person or any Subsidiary of such Person. The
term "CONTROL" (including the terms "CONTROLLED BY" or "UNDER COMMON CONTROL
WITH") means the possession, directly or indirectly, of the power to direct or
cause the direction of the management and policies of a Person, whether through
ownership, by contract, or otherwise.

         "AGREEMENT" means this Credit Agreement, as may be modified, amended,
restated, and supplemented from time to time.

         "APPLICABLE LENDING OFFICE" means, with respect to each Bank and for
any particular type of transaction, the office of such Bank set forth in
Schedule I to this Agreement (or in the applicable Assignment and Acceptance by
which such Bank joined this Agreement) as its applicable lending office for such
type of transaction or

                                       2
<PAGE>   8

such other office of such Bank as such Bank may from time to time specify in
writing to the Borrower and the Administrative Agent for such particular type of
transaction.

         "APPLICABLE MARGIN" means, with respect to interest rates, unused
commitment fees, and letter of credit fees, as applicable, determined as of the
end of the fiscal quarter then most recently ended (except as hereafter
provided), at such times as the relevant Consolidated Funded Debt to
Consolidated EBITDA Ratio is in one of the following ranges, the percentage per
annum set forth opposite such Consolidated Funded Debt to Consolidated EBITDA
Ratio:

<TABLE>
<CAPTION>
Consolidated Funded
-------------------
Debt to Consolidated                 Applicable Margin
--------------------                LIBOR Tranches and            Applicable Margin             Applicable Margin
EBITDA Ratio                       Letter of Credit Fee          Prime Rate Tranche              Commitment Fee
------------                       --------------------          ------------------             -----------------
<S>                                <C>                           <C>                            <C>
<= 1.00                                    0.625%                         0%                            0.15%

> 1.00 x but <= 2.00 x                     0.875%                         0%                           0.175%

>  2.00                                    1.125%                         0%                            0.20%
</TABLE>

         Until delivery of a Compliance Certificate for the fiscal quarter
ending on March 31, 2000, the foregoing margins shall be deemed to be based upon
a Consolidated Funded Debt to Consolidated EBITDA Ratio of less than or equal to
1.0 to 1.0. Thereafter, the ratio and resulting Applicable Margin shall be based
upon Schedule B of the most recent Compliance Certificate delivered to the
Administrative Agent pursuant to Section 5.2(a) or Section 5.2(b) (beginning
with the delivery of the Compliance Certificate for the fiscal quarter ending on
March 31, 2000).

         Any adjustments to the Applicable Margin shall become effective on the
60th day following the last day of each fiscal quarter (except the last fiscal
quarter of each fiscal year) or on the 90th day following the last day of each
fiscal year as applicable; provided, however, that if any such Compliance
Certificate is not delivered when required hereunder, unless otherwise agreed to
by the Administrative Agent in writing, the Applicable Margin shall be deemed to
be the maximum percentage amount in each table from such 60th or 90th day until
such Compliance Certificate is received by the Administrative Agent.

         Upon any change in the Applicable Margin, the Administrative Agent
shall promptly notify the Borrower and the Banks of the new Applicable Margin.

         "APPROVED CONSIDERATION" means the Acquisition Consideration payable
for an Acquisition, the payment of which has been approved in writing by the
Majority Banks prior to the Acquisition Date of such Acquisition as Approved
Consideration for purposes of this Agreement.

                                       3
<PAGE>   9

         "ASSIGNMENT AND ACCEPTANCE" means an Assignment and Acceptance in
substantially the form of Exhibit E executed by an assignor Bank, an assignee
Bank, and the Administrative Agent, in accordance with Section 8.5.

         "BANK OF AMERICA" means Bank of America, N.A. and its successors by
merger.

         "BANKS" means the lenders listed as Banks on the signature pages of
this Agreement and each Eligible Assignee that shall become a party to this
Agreement pursuant to Section 8.5(b).

         "BASE RATE" means, for any day, the fluctuating rate per annum of
interest equal to the greater of (a) the Prime Rate in effect on such day or (b)
the Federal Funds Rate in effect on such day plus 0.50%.

         "BORROWER" means Eagle USA Airfreight, Inc., a Texas corporation.

         "BUSINESS DAY" means any Monday through Friday during which all
commercial banks are open for conducting all of their commercial banking
business services in Houston, Texas, and, if the applicable Business Day relates
to any LIBOR Tranche, on which dealings are carried on in the London interbank
market.

         "CAPITAL STOCK" means: (a) in the case of a corporation, any equity
security issued by that corporation; and (b) in the case of any other entity,
any share, membership, partnership or other percentage interest, unit of
participation or other equivalent (however designated) of an equity security or
other equity interest in an entity.

         "CAPITALIZED LEASE OBLIGATIONS" means, for any Person, the amount of
such Person's liabilities under all leases of real or personal property (or any
interest therein) which is required to be capitalized on the balance sheet of
such Person as determined in accordance with GAAP.

         "CASH" means legal currency of the United States of America.

         "CASH EQUIVALENTS" means (i) securities issued or directly and fully
guaranteed or insured by the United States of America or any agency or
instrumentality thereof having maturities of not more than twelve (12) months
from the date of acquisition; (ii) U.S. Dollar denominated time deposits and
certificates of deposit maturing within one (1) year from the date of
acquisition thereof with any Bank or any other financial institution whose
short-term senior unsecured debt rating is at least A-1 from S&P or P-1 from
Moody's; (iii) LIBOR denominated time deposits and certificates of deposit
maturing within six (6) months from the date of acquisition thereof with any
Bank or any other financial institution whose short-term senior unsecured debt
rating is at least

                                       4
<PAGE>   10

A-1 from S&P or P-1 from Moody's; (iv) commercial paper or Eurocommercial paper
with a rating of at least A-1 from S&P or P-1 from Moody's, with maturities of
not more than twelve (12) months from the date of acquisition; (v) repurchase
obligations entered into with any Bank or any other financial institution whose
short-term senior unsecured debt rating is at least A-1 from S&P or P-1 from
Moody's, which are secured by a fully perfected security interest in any
obligation of the type described in (i) above and has a market value of the time
such repurchase is entered into of not less than 100% of the repurchase
obligation of such Bank or such other Person thereunder; (vi) marketable direct
obligations issued by any state of the United States of America or any political
subdivision of any such state or any public instrumentality thereof maturing
within twelve (12) months from the date of acquisition thereof or providing for
the resetting of the interest rate applicable thereto not less often than
annually and, at the time of acquisition, having one of the two highest ratings
obtainable from either S&P or Moody's; (vii) money market funds which have at
least $1,000,000,000 in assets and which invest primarily in securities of the
types described in clauses (i) through (vi) above; and (viii) marketable
securities publicly traded on nationally recognized United States' domestic
stock exchange.

         "CHANGE OF CONTROL" means, with respect to the Borrower, (a) the direct
or indirect acquisition after the date hereof by any Person or related Persons
constituting a group of (i) beneficial ownership of issued and outstanding
shares of Voting Securities of the Borrower, the result of which acquisition is
that such Person or such group possesses 25% or more of the combined voting
power of all then-issued and outstanding Voting Securities of the Borrower or
(ii) the power to elect, appoint, or cause the election or appointment of at
least a majority of the members of the board of directors of the Borrower, or
(b) the individuals who, at the beginning of any period of 12 consecutive
months, constitute the Borrower's board of directors (together with any new
director whose election by the Borrower's board of directors or whose nomination
for election by the Borrower's stockholders entitled to vote thereon was
approved by a vote of at least a majority of the directors then still in office
who either were directors at the beginning of such period or whose election or
nomination for election was previously so approved) cease for any reason (other
than death or disability) to constitute a majority of the Borrower's board of
directors then in office during such 12 month period.

         "CHARTER DOCUMENTS" means, with respect to any Person, (a) the articles
or certificate of formation, incorporation, or organization (or the equivalent
organizational documents) of such Person, and (b) the bylaws, limited liability
company agreement or regulations (or the equivalent governing documents) of such
Person.

         "CODE" means the Internal Revenue Code of 1986, as amended, or any
successor statute.

                                       5
<PAGE>   11

         "COMMONLY CONTROLLED ENTITY" means, with respect to any Person, any
other Person which is under common control with such Person within the meaning
of Section 414 of the Code.

         "COMPLIANCE CERTIFICATE" means a compliance certificate executed by a
Responsible Officer of the Borrower in substantially the form of Exhibit A,
including the following attached Schedules:

         SCHEDULE A: The applicable financial reports provided under Section
         5.2(a) or 5.2(b).

         SCHEDULE B: The computation of the financial covenants under this
         Agreement in a form acceptable to the Administrative Agent.

         "CONSOLIDATED EBIT" means, for any applicable period, the sum of
Consolidated Net Income plus each of the following to the extent actually
deducted in determining Consolidated Net Income (a) Consolidated Interest
Expense, and (b) Consolidated Tax Expense.

         "CONSOLIDATED EBITDA" means, for any applicable period, the sum of
Consolidated Net Income plus each of the following to the extent actually
deducted in determining Consolidated Net Income (a) Consolidated Interest
Expense, (b) Consolidated Tax Expense, and (c) the amount of all depreciation
and amortization expense deducted in determining Consolidated Net Income, all
calculated on a consolidated basis for the Borrower and its Subsidiaries and as
determined in accordance with GAAP.

         "CONSOLIDATED FIXED CHARGE COVERAGE RATIO" means, for the immediately
preceding four fiscal quarters, the ratio of (a) the sum of, without
duplication, (i) Consolidated EBIT, plus (ii) Consolidated Lease Expense; to (b)
the sum of (i) Consolidated Interest Expense, plus (ii) Consolidated Lease
Expense.

         "CONSOLIDATED FUNDED DEBT" means, as of any date of determination, all
interest bearing Debt of Borrower and its Subsidiaries which is evidenced by
promissory notes, loan agreements, bonds or similar instruments, as such amount
is required to be shown on Borrower's consolidated balance sheet as of that date
prepared in accordance with GAAP (including, without limitation, all Capitalized
Lease Obligations).

         "CONSOLIDATED FUNDED DEBT TO CONSOLIDATED EBITDA RATIO" means, as of
the end of any fiscal quarter of Borrower, the ratio of (a) Consolidated Funded
Debt at that time to (b) Consolidated EBITDA for the four fiscal quarters then
ended.

                                       6
<PAGE>   12

         "CONSOLIDATED FUNDED DEBT TO TOTAL CAPITALIZATION RATIO" means, as of
the end of any fiscal quarter of Borrower, the ratio of (a) Consolidated Funded
Debt to (b) the sum of (i) Consolidated Net Worth, plus (ii) Consolidated Funded
Debt.

         "CONSOLIDATED INTEREST EXPENSE" means, for any period, the amount
which, in conformity with GAAP, would be set forth opposite the caption
"interest expense" or any like caption (including without limitation, imputed
interest included in payments under Capitalized Lease Obligations) on a
consolidated income statement of the Borrower and its Subsidiaries for such
period.

         "CONSOLIDATED LEASE EXPENSE" means, for any period, the amount which,
in conformity with GAAP, would be set forth opposite the caption "lease expense"
or any like caption on a consolidated income statement of the Borrower and its
Subsidiaries for such period.

         "CONSOLIDATED NET INCOME" means, for any period, the net income (or
loss), after provision or benefit for taxes of the Borrower and its Subsidiaries
on a consolidated basis for such period, determined in accordance with GAAP.

         "CONSOLIDATED NET WORTH" means, as of any date of determination, the
Borrower's consolidated stockholders equity determined in accordance with GAAP.

         "CONSOLIDATED TAX EXPENSE" means, for any period, the amount which, in
conformity with GAAP, would be set forth opposite the caption "tax expense" or
any like caption on a consolidated income statement of the Borrower and the
Subsidiaries for such period.

         "CONTINUATION/CONVERSION REQUEST" means a Continuation/Conversion
Request in substantially the form of Exhibit C executed by a Responsible Officer
of the Borrower and delivered to the Administrative Agent.

         "CREDIT DOCUMENTS" means this Agreement, the Revolving Loan Notes, the
Letter of Credit Documents, the Swing Line Note, the Guaranty, the Interest
Hedge Agreements, all joinder agreements provided pursuant to Section 5.19 and
5.21, and each other agreement, instrument, or document executed at any time in
connection with this Agreement.

         "CREDIT OBLIGATIONS" means all principal, interest, fees,
reimbursements, indemnifications, and other amounts now or hereafter owed by the
Borrower to the Administrative Agent and the Banks (or with respect to the
Interest Hedge Agreements, any Affiliates of the Banks) under this Agreement,
the Revolving Loan Notes, the Swing Line Note, the Letter of Credit Documents,
and the other Credit Documents and any increases, extensions, and rearrangements
of those obligations

                                       7
<PAGE>   13

under any amendments, supplements, and other modifications of the documents and
agreements creating those obligations.

         "DEBT" of any Person means at any date, without duplication of amounts,
(a) all indebtedness, obligations and liabilities of such Person for borrowed
money, (b) all indebtedness, obligations and liabilities of such Person
evidenced by bonds, debentures, notes, bankers acceptances or other similar
instruments, whether recourse or non-recourse and whether secured or unsecured,
(c) all obligations of such Person issued or assumed as the deferred purchase of
property or services (other than unsecured accounts payable, accrued expenses,
deferred compensation, and other pension, benefit and welfare expenses arising
in the ordinary course of business), (d) all Capitalized Lease Obligations of
such Person, (e) all obligations, after netting, of such Person in respect of
Interest Hedge Agreements or agreements, devices or arrangements designed to
protect against fluctuations in commodity prices or currency exchange rates, (f)
all amounts available for drawing under all letters of credit issued for the
account of such Person and all amounts drawn under all such letters of credit
for which such Person has an outstanding reimbursement obligation, (g) all
mandatory obligations of such Person to redeem or repurchase its outstanding
Capital Stock at any time prior to the date six (6) months after the Revolving
Loan Maturity Date, and (h) obligations of other Persons, whether or not
assumed, secured by Liens upon property or payable out of the proceeds or
production from property owned or acquired by such Person, but only to the
extent of such property's fair market value, (i) any liabilities of others of
the type described in the preceding clauses (a) through (h) in respect of which
such Person has incurred, assumed or acquired a liability by means of a
Guaranty. For purposes of this Agreement, the Debt of any Person shall include
the Debt of any partnership or joint venture to which such Person is a party, to
the extent such Debt is recourse to such Person.

         "DEFAULT" means (a) an Event of Default or (b) any event or condition
which with notice or lapse of time or both would, unless cured or waived, become
an Event of Default.

         "DEFAULT RATE" means, with respect to any amount due hereunder, a per
annum interest rate equal to (a) if such amount is either outstanding principal
accruing interest based upon a rate established elsewhere in this Agreement or
accrued but unpaid interest thereon, the sum of (i) the interest rate
established elsewhere in this Agreement from time to time for such principal
amount, including any applicable margin, plus (ii) 2.00% per annum or (b) in all
other cases, the Base Rate in effect from time to time plus the Applicable
Margin for the Prime Rate Tranche in effect from time to time plus 2.00% per
annum.

                                       8
<PAGE>   14

         "DERIVATIVES" means any swap, hedge, cap, collar, or similar
arrangement providing for the exchange of risks related to price changes in any
commodity, including money.

         "DISTRIBUTION" by any Person, means (a) with respect to any Capital
Stock issued by such Person, the retirement, redemption, repurchase, or other
acquisition for value of such Capital Stock, (b) the declaration or payment
(without duplication) of any dividend or other distribution, whether monetary or
in kind, on or with respect to any Capital Stock of such Person, and (c) any
other payment or distribution of assets of a similar nature or in respect of an
equity investment in such Person.

         "DOLLARS OR $" means lawful money of the United States of America.

         "EFFECTIVE DATE" means the date this Agreement becomes effective as
defined in Section 8.10.

         "ELIGIBLE ASSIGNEE" means, with respect to any assignment hereunder (a)
any Bank, or (b) at the time of such assignment, any commercial bank organized
under the laws of the United States or any of the countries parties to the
Organization for Economic Cooperation and Development or any political
subdivision of any thereof which has primary capital (or its equivalent) of not
less than $500,000,000, is approved by the Administrative Agent, and, so long as
no Event of Default exists and the proposed assignee is not an Affiliate of a
Bank, is approved by the Borrower, in either case, such approval not to be
unreasonably withheld.

         "ENGAGEMENT LETTER" means the letter agreement dated as of November 11,
1999, from the Administrative Agent regarding, among other things, the
administrative agency fee payable to Administrative Agent.

         "ENVIRONMENTAL CLAIMS" means any and all administrative, regulatory or
judicial actions, suits, demands, demand letters, claims, liens, notices of
non-compliance or violations, formal investigations or proceedings relating to
any Environmental Law ("CLAIMS") or any permit issued under any Environmental
Law, including, without limitation, (i) any and all Claims by governmental or
regulatory authorities for enforcement, cleanup, removal, response, remedial or
other actions or damages pursuant to any applicable Environmental Law, and (ii)
any and all Claims by any third party seeking damages, contribution,
indemnification, cost recovery, compensation or injunctive relief resulting from
a release or threatened release of Hazardous Materials.

         "ENVIRONMENTAL LAW" means all federal, state, foreign, and local laws,
rules, regulations, ordinances, orders, decisions, agreements, and other
requirements now or hereafter in effect relating to the pollution, destruction,
loss, or injury of the environment, the presence of any contaminant in the
environment, the protection,

                                       9
<PAGE>   15

cleanup, remediation, or restoration of the environment, the creation, handling,
transportation, use, or disposal of any waste product in the environment,
exposure of persons to any contaminant, waste, or hazardous substance in the
environment, and the health and safety of employees in relation to their
environment.

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

         "EVENT OF DEFAULT" has the meaning specified in Section 6.1.

         "FEDERAL FUNDS RATE" means, for any day, the rate per annum (rounded
upwards, if necessary, to the nearest 1/100 of 1%) equal to the weighted average
of the rates on overnight federal funds transactions with members of the Federal
Reserve System arranged by federal funds brokers on such day, as published by
the Federal Reserve Bank of New York on the Business Day next succeeding such
day; provided that (a) if such day is not a Business Day, the Federal Funds Rate
for such day shall be such rate on such transactions on the immediately
preceding Business Day as so published on the next succeeding Business Day, and
(b) if no such rate is so published on such next succeeding Business Day, the
Federal Funds Rate for such day shall be the average of the offered rates quoted
to the Administrative Agent (in its individual capacity) by two (2) federal
funds brokers of recognized standing on such day for such transactions as
selected and determined by the Administrative Agent.

         "FEDERAL RESERVE BOARD" means the Board of Governors of the Federal
Reserve System or any of its successors.

         "GAAP" means generally accepted accounting principles, consistently
applied, as used in the United States of America.

         "GUARANTOR" means each domestic Subsidiary of Borrower as of the
Effective Date and each other domestic Subsidiary of Borrower formed or acquired
after the Effective Date and required to become a Guarantor pursuant to Section
5.19.

         "GUARANTY" means, for any Person, without duplication, any liability,
contingent or otherwise, of such Person guaranteeing or otherwise becoming
liable for any obligation of any other Person (the "PRIMARY OBLIGOR") in any
manner, whether directly or indirectly, and including, without limitation, any
liability of such Person, direct or indirect, (a) to purchase or pay (or advance
or supply funds for the purchase or payment of) such obligation or to purchase
(or to advance or supply funds for the purchase of) any security for the payment
of such obligation, (b) to purchase or lease property, securities or services
for the purpose of assuring the owner of such obligation of the payment of such
obligation, (c) to maintain working capital, equity capital or other financial
statement condition or liquidity of the primary obligor so as

                                       10
<PAGE>   16

to enable the primary obligor to pay such obligation, or (d) otherwise to assure
the owner of such obligation against loss in respect thereof; provided, that the
term "GUARANTY" does not include endorsements for collection or deposit in the
ordinary course of the endorser's business.

         "HAZARDOUS MATERIALS" means any substance (a) that is regulated by any
Environmental Law, (b) whose handling is regulated by any Environmental Law, (c)
exposure to which is regulated or in any way controlled under any Environmental
Law, or (d) the release of which is subject to notification under any
Environmental Law.

         "HIGHEST LAWFUL RATE" means the maximum lawful interest rate, if any,
that at any time or from time to time may be contracted for, charged, or
received under the laws applicable to the relevant Bank which are presently in
effect or, to the extent allowed by law, under such applicable laws which may
hereafter be in effect and which allow a higher maximum nonusurious interest
rate than applicable laws now allow. The maximum lawful rate under this
Agreement shall be the weekly indicated rate ceiling under Chapter 1D of Article
5069 of the Texas Revised Civil Statutes and Texas Finance Code Chapter 303, as
amended, unless any other lawful rate ceiling exceeds the rate ceiling so
determined, and then the higher rate ceiling shall apply.

         "INTEREST HEDGE AGREEMENTS" means any and all agreements, devices or
arrangements designed to protect at least one of the parties thereto from the
fluctuations of interest rates or foreign exchange rates, including, without
limitation, interest rate cap or collar protection agreements, foreign exchange
contracts, interest rate swap agreements, interest rate options, or other
Derivatives, as the same may be amended or modified and in effect from time to
time.

         "INTEREST PERIOD" means, with respect to each LIBOR Tranche, the period
commencing on the date of such LIBOR Tranche and ending on the last day of the
period selected by the Borrower pursuant to the provisions below. The duration
of each such Interest Period shall be one, two, three, or six months, in each
case as the Borrower may select in the applicable Revolving Loan Borrowing
Request or Continuation/Conversion Request (unless there shall exist any
Default, in which case, the Borrower may only select one month Interest
Periods); provided, however, that:

                  (a) whenever the last day of any Interest Period would
         otherwise occur on a day other than a Business Day, the last day of
         such Interest Period shall be extended to occur on the next succeeding
         Business Day; provided that if such extension would cause the last day
         of such Interest Period to occur in the next following calendar month,
         the last day of such Interest Period shall occur on the next preceding
         Business Day;

                                       11
<PAGE>   17

                  (b) any Interest Period which begins on the last Business Day
         of the calendar month (or on a day for which there is no numerically
         corresponding day in the calendar month at the end of such Interest
         Period) shall end on the last Business Day of the calendar month in
         which it would have ended if there were a numerically corresponding day
         in such calendar month; and

                  (c) the Borrower may not select an Interest Period for any
         LIBOR Tranche which ends after the Revolving Loan Maturity Date.

         "INVESTMENT" means a payment or obligation made or incurred by a Person
in the form of cash, loans, guaranties, open accounts, transfers of property,
and other extensions of credit.

         "ISSUING BANK" means Bank of America, any successor to Bank of America
by merger, and any successor issuing bank pursuant to Section 7.7.

         "LETTER OF CREDIT" means any commercial or standby letter of credit
issued by the Issuing Bank for the account of the Borrower pursuant to the terms
of this Agreement.

         "LETTER OF CREDIT APPLICATION" means the Issuing Bank's standard form
letter of credit application for either a commercial or standby letter of
credit, as the case may be, which has been executed by the Borrower and accepted
by the Issuing Bank in connection with the issuance of a Letter of Credit.

         "LETTER OF CREDIT APPLICATION AMENDMENT" means the Issuing Bank's
standard form application to amend a letter of credit for either a commercial or
standby letter of credit, as the case may be, which has been executed by a
Borrower and accepted by the Issuing Bank in connection with the increase or
extension of a Letter of Credit.

         "LETTER OF CREDIT COLLATERAL ACCOUNT" means a special interest-bearing
cash collateral account pledged to the Administrative Agent containing cash
deposited pursuant to Sections 2.2(d) or 6.4 to be maintained with the
Administrative Agent in accordance with Section 2.2(g).

         "LETTER OF CREDIT DOCUMENTS" means all Letters of Credit, Letter of
Credit Applications, Letter of Credit Application Amendments, and agreements,
documents, and instruments entered into in connection with or relating thereto,
and all modifications, amendments, and supplements to any of the foregoing.

         "LETTER OF CREDIT EXPOSURE" means, as of any date of its determination,
the aggregate outstanding undrawn amount of Letters of Credit plus the aggregate
of the

                                       12
<PAGE>   18

reimbursement obligations of the Borrower under the Letter of Credit
Applications and this Agreement.

         "LETTER OF CREDIT SUBLIMIT" means $10,000,000.00.

         "LIBOR" means, for any LIBOR Tranche for any Interest Period therefor,
the rate per annum (rounded upwards, if necessary, to the nearest 1/100 of 1%)
appearing on Telerate Page 3750 (or any successor page) as the London interbank
offered rate for deposits in Dollars at approximately 11:00 a.m. (London time)
two Business Days prior to the first day of such Interest Period for a term
comparable to such Interest Period. If for any reason such rate is not
available, the term "LIBOR" shall mean, for any LIBOR Tranche for any Interest
Period therefor, the rate per annum (rounded upwards, if necessary, to the
nearest 1/100 of 1%) appearing on Reuters Screen LIBO Page as the London
interbank offered rate for deposits in Dollars at approximately 11:00 a.m.
(London time) two Business Days prior to the first day of such Interest Period
for a term comparable to such Interest Period; provided, however, if more than
one rate is specified on Reuters Screen LIBO Page, the applicable rate shall be
the arithmetic mean of all such rates.

         "LIBOR TRANCHE" shall mean any Tranche which bears interest based upon
the LIBOR, as determined in accordance with Section 2.5.

         "LIEN" means any mortgage, pledge, hypothecation, assignment, deposit
arrangement, encumbrance, lien (statutory or other), charge or other security
interest or any preference, priority or other security agreement or preferential
arrangement of any kind or nature whatsoever (including, without limitation, any
conditional sale or other title retention agreement and any Capitalized Lease
Obligation having substantially the same economic effect as any of the
foregoing), and the filing of any financing statement under the Uniform
Commercial Code or comparable law of any jurisdiction in respect of any of the
foregoing (other than financing statements under the Uniform Commercial Code or
comparable law relating to Debt which has been paid off and is subject to a
payoff letter which releases the Liens evidenced by such financing statement,
provided, that such financing statement is terminated within thirty (30) days
following the payoff of such Debt).

         "MAJORITY BANKS" means (a) so long as Borrower may make Revolving Loan
Borrowings under this Agreement, Banks holding more than 50% of the Revolving
Loan Commitments at such time, and (b) upon and after the expiration of the
commitment of the Banks to advance Revolving Loan Borrowings under this
Agreement, Banks holding more than 50% of the then aggregate unpaid balances of
the Revolving Notes, plus the Letter of Credit Exposure of the Banks, at such
time.

                                       13
<PAGE>   19

         "MATERIAL ADVERSE CHANGE OR EFFECT" means an effect that results in a
material adverse change since June 30, 1999 (based upon the Preliminary
Financial Statements) in (i) the business, properties, assets, or financial
condition of the Borrower and its Subsidiaries, taken as a whole, or (ii) in the
ability of the Borrower or Borrower and the Guarantors, taken as a whole, to
perform its Credit Obligations under the Credit Documents to which they are a
party.

         "MOODY'S" means Moody's Investors Service, Inc., or any successor
thereto.

         "PBGC" means Pension Benefit Guaranty Corporation or its successor.

         "PERMITTED DEBT" of Borrower or any Subsidiary of Borrower means:

         (a) the Debt included in the Credit Obligations;

         (b) the Subsidiary Guaranties;

         (c) Debt of any Subsidiary of Borrower owing to Borrower or any other
Subsidiary of Borrower or Debt of Borrower to any of its Subsidiaries;

         (d) any Interest Hedge Agreements not entered into for speculative
purposes;

         (e) Debt of Borrower or any Subsidiary incurred in connection with an
Acquisition to the sellers (or their representatives), including, without
limitation, contingent earn-out payments, but only to the extent such Debt is
unsecured;

         (f) additional Debt (including, without limitation, purchase money
indebtedness and secured trade payables and any Debt assumed by Borrower in
connection with an Acquisition) of Borrower and its Subsidiaries not to exceed
at any time an outstanding aggregate principal amount of such additional Debt
equal to $30,000,000.00;

         (g) Debt constituting reimbursement obligations to sureties issuing
payment and performance bonds in the ordinary and usual course of Borrower's and
its Subsidiaries' business operations; and

         (h) extensions and renewals of any of the foregoing (to the extent
otherwise permitted under this Agreement).

         "PERMITTED ENCUMBRANCES" means each of the following:

         (a) Liens created pursuant to the Credit Documents;

                                       14
<PAGE>   20

         (b) Liens for taxes not yet due or which are being contested in good
faith by appropriate proceedings; provided, that adequate reserves with respect
thereto are maintained on the books of the Borrower or its Subsidiaries, as the
case may be, in conformity with GAAP;

         (c) carriers', warehousemen's (to the extent permitted by paragraph (s)
below), mechanics', materialmen's, repairmen's, or other like Liens arising by
operation of law for sums which are not yet due or which are being contested in
good faith by appropriate proceedings;

         (d) Liens incurred in the ordinary course of a specified Person's
business in connection with workmen's compensation, unemployment insurance and
other social security legislation (other than pursuant to ERISA or Section
4.12(n) of the Code) or to secure liabilities to insurance carriers under
insurance or self-insurance arrangements and other obligations of a like nature,
so long as, in each case with respect to this clause (d), the obligation is not
Debt and is not overdue, or if overdue, is being contested in good faith by
appropriate proceedings and reserves in conformity with GAAP have been provided
for;

         (e) easements, rights-of-way, restrictions and other similar
encumbrances incurred in the ordinary course of business which, in the
aggregate, are not substantial in amount and which do not in any case materially
detract from the value of the property subject thereto or materially interfere
with the ordinary conduct of the business of the Borrower or such Subsidiary;

         (f) defects or irregularities in the specified Person's title to its
real properties which do not materially (i) diminish the value of the surface
estate or (ii) interfere with the ordinary conduct of the specified Person's
business or the use or intended use of any of such properties;

         (g) any interest or title of any consignor, operating lease lessor or
similar Person in assets of that Person pursuant to any consignment or operating
lease arrangement entered into in the ordinary course of the specified Person's
business;

         (h) Liens incurred in the ordinary course of the specified Person's
business to secure the performance of bids, tenders, trade contracts (other than
for borrowed money), leases, statutory obligations, surety and appeal bonds,
performance and return of money bonds and other obligations of a like nature; so
long as, in each case with respect to this clause (h), the obligation secured is
not Debt and is not overdue, or if overdue, is being contested in good faith by
appropriate proceedings and reserves in conformity with GAAP have been provided
for;

                                       15
<PAGE>   21

         (i) Liens arising out of judgments or awards against the Borrower or
any of its Subsidiaries, or in connection with surety or appeal bonds or the
like in connection with bonding such judgments or award, the time for appeal
from which or petition for rehearing of which shall not have expired or for
which the Borrower or such Subsidiary shall be prosecuting on appeal or
proceeding for review and for which it shall have obtained a stay of execution
or the like pending such appeal or proceeding for review;

         (j) Liens securing up to $10,000,000.00, in the aggregate of the
Permitted Debt permitted by paragraph (f) of the definition of Permitted Debt;
provided, that any such Liens shall not encumber Cash or Cash Equivalents, any
account or accounts receivable, real property, or the stock or other ownership
interest of the Borrower in any of its Subsidiaries or any proceeds thereof;

         (k) rights reserved to or vested in any Governmental Authority by the
terms of any right, power, franchise, grant, license or permit, or by any
provision of law, to terminate such right, power, franchise, grant, license or
permit to purchase, condemn, expropriate or recapture or to designate a
purchaser of any of the property of the specified Person;

         (l) rights reserved to or vested in any Governmental Authority to
control, regulate or use any property of the specified Person;

         (m) any obligations or duties affecting the property of the specified
Person to any Governmental Authority with respect to any franchise, grant,
license or permit;

         (n) pre-judgment Liens;

         (o) legal or equitable encumbrances deemed to exist by reason of
fraudulent transfer or conveyance laws;

         (p) Liens securing sureties for reimbursement of amounts paid on
payment and performance bonds (to the extent such amounts constitute Permitted
Debt under paragraph (g) of the definition of Permitted Debt); and

         (q) Liens in existence on the date hereof and listed on Schedule 4.21;
provided, that no such Lien is spread to cover any additional property after the
Effective Date and that the amount of Debt secured thereby is not increased.

         "PERMITTED INVESTMENTS" means all of the following investments:

                  (a) direct and indirect investments by Borrower in wholly
         owned domestic Subsidiaries and indirect investments in its Foreign
         Subsidiaries;

                                       16
<PAGE>   22

                  (b) investments in Permitted Debt;

                  (c) Acquisitions permitted by the terms of this Agreement;

                  (d) investments up to an aggregate amount of $20,000,000.00 in
         any Person (other than Borrower or a Subsidiary);

                  (e) extensions of trade credit in the ordinary course of
         business; and

                  (f) investments in Cash Equivalents.

In valuing any investments for the purpose of applying any limitations set forth
in this Agreement, such investments shall be taken at the original cost thereof
(but without reduction or increase for any subsequent appreciation or
depreciation thereof) less any amount actually repaid or recovered on account of
capital or principal (but without reduction for any offsetting investments made
by the investee in the investor). For purposes of this Agreement, at any time
when a corporation becomes a Subsidiary of the Borrower, all investments of such
corporation at such time shall be deemed to have been made by such corporation
at such time.

         "PERMITTED LINE OF BUSINESS" means any of the following: (a) freight
transportation and logistics, (b) warehousing, (c) import/export services, and
(d) any activity reasonably related to the foregoing.

         "PERSON" means an individual, partnership, corporation (including a
business trust), joint stock company, limited liability company, trust,
unincorporated association, joint venture, or other entity, or a government or
any political subdivision or agency thereof, or any trustee, receiver,
custodian, or similar official.

         "PLAN" means, for any Person, an employee benefit plan of that Person
subject to ERISA.

         "PRELIMINARY FINANCIAL STATEMENTS" means the financial statements of
Borrower and its Subsidiaries provided to the Administrative Agent in connection
with Borrower's application for the Revolving Loans to be provided under this
Agreement.

         "PRIME RATE" means, for any day, the fluctuating per annum interest
rate in effect on such day equal to the rate of interest publicly announced by
the Administrative Agent as its prime rate, whether or not the Borrower has
notice thereof.

         "PRIME RATE BORROWING" shall mean that portion of any Revolving Loan
Borrowing which bears interest based upon the Base Rate as determined in
accordance with Section 2.4.

                                       17
<PAGE>   23

         "PRIME RATE TRANCHE" shall mean the Tranche which bears interest based
upon the Base Rate, as determined in accordance with Section 2.5.

         "PROHIBITED TRANSACTION" means any transaction set forth in Section 406
of ERISA or Section 4975 of the Code.

         "RATABLE SHARE" OR "PRO RATA SHARE" means, with respect to any Bank and
as of any date of its determination, either (a) the ratio of such Bank's
Revolving Loan Commitment at such time to the aggregate Revolving Loan
Commitments at such time or (b) if the Revolving Loan Commitments have been
terminated, the ratio of such Bank's aggregate outstanding Revolving Loan
Advances and share of the Letter of Credit Exposure at such time to the
aggregate outstanding Revolving Loan Advances and Letter of Credit Exposure at
such time.

         "RELATED PARTIES" means, with respect to any Person, such Person's
stockholders, directors, officers, employees, agents, Affiliates, successors,
and assigns, and their respective stockholders, directors, officers, employees,
and agents, and, with respect to any Person that is an individual, such Person's
family relations and heirs.

         "REPORTABLE EVENT" means any of the events set forth in Section 4043 of
ERISA.

         "RESPONSIBLE OFFICER" means, with respect to any Person, such Person's
Chief Executive Officer, President, Chief Financial Officer, Treasurer,
Controller, or any other officer of such Person designated by any of the
foregoing in writing from time to time.

         "REVOLVING LOAN" or "REVOLVING LOANS" each means the aggregate
outstanding principal amount of the Revolving Loan Borrowings.

         "REVOLVING LOAN ADVANCE" means the outstanding principal from a Bank
which represents such Bank's ratable share of a Revolving Loan Borrowing.

         "REVOLVING LOAN BORROWING" means any aggregate amount of principal
advanced on the same day and pursuant to the same Revolving Loan Borrowing
Request under the revolving loan facility created in Section 2.1.

         "REVOLVING LOAN BORROWING REQUEST" means a Revolving Loan Borrowing
Request in substantially the form of Exhibit B executed by a Responsible Officer
of the Borrower and delivered to the Administrative Agent.

         "REVOLVING LOAN COMMITMENT" means, for any Bank, the amount set forth
beside such Bank's name on the signature pages of this Agreement as its
Revolving Loan Commitment, or if such Bank has entered into any Assignment and
Acceptance

                                       18
<PAGE>   24

since the date of this Agreement, as set forth for such Bank as its Revolving
Loan Commitment in the Register maintained by the Administrative Agent pursuant
to Section 8.5(c), in each case as such amount may be terminated pursuant to
Section 6.2.

         "REVOLVING LOAN MATURITY DATE" means 364 days from the date of this
Agreement.

         "REVOLVING LOAN NOTE" means a promissory note of the Borrower payable
to the order of a Bank, in substantially the form of Exhibit D, evidencing the
indebtedness of the Borrower to such Bank resulting from Revolving Loan Advances
made by such Bank to the Borrower.

         "S&P" means Standard & Poor's Rating Group or any successor thereto.

         "SEC" means the Securities and Exchange Commission.

         "SUBSIDIARY" means, as to any Person, a corporation, partnership or
other entity of which shares of stock or other ownership interests having
ordinary voting power (other than stock or such other ownership interests having
such power only by reason of the happening of a contingency) to elect a majority
of the board of directors or other managers of such corporation, partnership or
other entity are at the time owned, or the management of which is otherwise
controlled, directly or indirectly through one or more intermediaries, or both,
by such Person. Unless otherwise qualified, all references to a "Subsidiary" or
to "Subsidiaries" in this Agreement shall refer to a Subsidiary or Subsidiaries
of the Borrower.

         "SUBSIDIARY GUARANTY" means a Guaranty in substantially in the form of
Exhibit I, executed and delivered to the Administrative Agent by each domestic
Subsidiary of Borrower existing on the Effective Date, guaranteeing the payment
and performance of the Credit Obligations and each domestic Subsidiary after the
Effective Date under Sections 5.19 and 5.21.

         "SWING LINE LENDER" means Bank of America and its successors and
assigns.

         "SWING LINE LOAN" means the aggregate outstanding principal amount of
the advances made under the Swing Line Note.

         "SWING LINE NOTE" means the promissory note of the Borrower in the
principal amount of $10,000,000 payable to the order of the Swing Line Lender
evidencing the indebtedness of the Borrower to the Swing Line Lender resulting
from advances to the Borrower under the line of credit created thereunder, and
in substantially the form of Exhibit H.

                                       19
<PAGE>   25

         "TRANCHE" means any tranche of principal outstanding under the
Revolving Loan accruing interest on the same basis whether created in connection
with new advances of principal under the Revolving Loan pursuant to Section
2.5(a)(i) or by the continuation or conversion of existing tranches of principal
under such Revolving Loan pursuant to Section 2.5(a)(ii) and shall include the
Prime Rate Tranche or any LIBOR Tranche.

         "TYPE" has the meanings set forth in Section 1.8.

         "VOTING SECURITIES" means (a) with respect to any corporation, any
capital stock of the corporation having general voting power under ordinary
circumstances to elect directors of such corporation, (b) with respect to any
partnership, any partnership interest having general voting power under ordinary
circumstances to elect the general partner or other management of the
partnership, and (c) with respect to any other Person, such ownership interests
in such Person having general voting power under ordinary circumstances to elect
the management of such Person, in each case, irrespective of whether at the time
any other class of stock, partnership interests, or other ownership interest
might have special voting power or rights by reason of the happening of any
contingency.

         1.2 Computation of Time Periods. In this Agreement, in the computation
of periods of time from a specified date to a later specified date, the word
"from" means "from and including" and the words "to" and "until" each means "to
but excluding."

         1.3 Singular and Plural of Definitions. Each term defined in the
singular form in Section 1.1 shall mean the plural thereof when the plural form
of such term is used in this Agreement, and each term defined in the plural form
in Section 1.1 shall mean the singular thereof when the singular form of such
term is used in this Agreement.

         1.4 Money. Unless stipulated otherwise, all references herein or in any
of the Credit Documents to "DOLLARS," "$," "MONEY," "PAYMENTS" or other similar
financial or monetary terms are references to lawful money of the United States
of America.

         1.5 Captions; References. The captions in this Agreement and in the
table of contents hereof are for convenience of reference only and shall not
define, affect or limit any of the terms or provisions hereof. All references
herein to "ARTICLES" and "SECTIONS" are, unless specified otherwise, references
to articles and sections of this Agreement. Unless specifically indicated
otherwise, all references herein to an "EXHIBIT," "ANNEX" or "SCHEDULE" are
references to exhibits, annexes or schedules attached hereto, all of which are
incorporated herein and made a part hereof for all purposes, the same as if set
forth fully herein, it being understood that if any exhibit, annex or schedule
attached hereto which is to be executed and delivered contains blanks, the same
shall be completed correctly and in accordance with this Agreement

                                       20
<PAGE>   26

prior to or at the time of the execution and delivery thereof. The words
"HEREIN," "HEREOF," "HEREUNDER" and other similar compounds of the word "HERE"
when used in this Agreement shall refer to this entire Agreement and not to any
particular provision or Section unless specifically indicated otherwise.

         1.6 Accounting Terms and Determinations. Unless otherwise specified
herein, all accounting terms used herein shall be interpreted, all accounting
determinations hereunder shall be made, and all financial statements required to
be delivered hereunder shall be prepared in accordance with GAAP.

         1.7 Knowledge. References in this Agreement or any other Credit
Document to knowledge of Borrower or any Subsidiary of Borrower of events or
circumstances shall be deemed to refer to events or circumstances of which a
Responsible Officer of Borrower or a Subsidiary has actual knowledge thereof, or
of which a Responsible Officer of Borrower or a Subsidiary has received
information communicated to him or her in writing.

         1.8 Types. The "TYPE" of a Tranche refers to the determination whether
such tranche is a LIBOR Tranche or the Prime Rate Tranche.

         1.9 Other Matters of Interpretation. All references to instruments,
documents, contracts, and agreements are references to such instruments,
documents, contracts, and agreements as the same may be amended, supplemented,
and otherwise modified from time to time, unless otherwise specified. The word
"INCLUDING" shall mean "INCLUDING BUT NOT LIMITED TO." The word "OR" shall mean
"AND/OR" wherever necessary to prevent interpretation of any provision against
the Administrative Agent or the Banks. "CURRENT", for purposes of this
Agreement, shall mean within 30 days from the applicable date. Whenever the
Borrower has an obligation under this Agreement and the Credit Documents the
expense of complying with that obligation shall be an expense of the Borrower
unless otherwise specified. Whenever any determination is to be made by the
Administrative Agent or any Bank, such determination shall be in such Person's
sole discretion unless otherwise specified in this Agreement. If any provision
in this Agreement and the Credit Documents is held to be illegal, invalid, not
binding, or unenforceable, such provision shall be fully severable and this
Agreement and the Credit Documents shall be construed and enforced as if such
illegal, invalid, not binding, or unenforceable provision had never comprised a
part of this Agreement and the Credit Documents, and the remaining provisions
shall remain in full force and effect. This Agreement and the Credit Documents
have been reviewed and negotiated by sophisticated parties with access to legal
counsel and shall not be construed against the drafter. In the event of a
conflict between this Agreement and any other Credit Documents, this Agreement
shall control.

                                       21
<PAGE>   27

ARTICLE 2.        CREDIT FACILITIES.

         2.1      Revolving Loan Facility.

                  (a) Revolving Loan Commitments. Each Bank severally agrees, on
         the terms and conditions set forth in this Agreement and for the
         purposes set forth in Section 5.4, to make Revolving Loan Advances to
         the Borrower as such Bank's ratable share of Revolving Loan Borrowings
         requested by the Borrower from time to time on any Business Day during
         the period from the Effective Date until the Revolving Loan Maturity
         Date provided that the aggregate outstanding principal amount of
         Revolving Loan Advances made by such Bank plus such Bank's ratable
         share of the Swing Line Loan plus such Bank's ratable share of the
         Letter of Credit Exposure shall not exceed such Bank's Revolving Loan
         Commitment. Revolving Loan Borrowings must be made in an amount equal
         to or greater than $1,000,000, in the case of any Revolving Loan
         Borrowing comprised of a LIBOR Tranche, or $500,000, in the case of any
         Prime Rate Borrowing comprised of a Prime Rate Tranche, and be made in
         multiples of $1,000,000, in the case of any Revolving Loan Borrowing
         comprised of a LIBOR Tranche, or $100,000, in the case of any Prime
         Rate Borrowing comprised of a Prime Rate Tranche. Within the limits
         expressed in this Agreement, the Borrower may from time to time borrow,
         prepay, and reborrow Revolving Loan Borrowings. The Revolving Loan
         shall be evidenced by Revolving Loan Notes made by the Borrower.

                  (b)      Method of Advancing

                           (i) Each Revolving Loan Borrowing shall be made
                  pursuant to a Revolving Loan Borrowing Request given by the
                  Borrower to the Administrative Agent in writing or by telecopy
                  not later than the time required pursuant to Section 2.5(a)(i)
                  to select the interest rate basis for the Revolving Loan
                  Borrowing. Each Revolving Loan Borrowing Request shall be
                  fully completed and shall specify the information required
                  therein, and shall be irrevocable and binding on the Borrower.
                  Upon receipt of the Revolving Loan Borrowing Request by the
                  Administrative Agent, the Administrative Agent shall promptly
                  forward notice of the Revolving Loan Borrowing to the Banks.
                  Each Bank shall, before 1:00 p.m. (local time at the
                  Applicable Lending Office of the Administrative Agent) on the
                  date of the requested Revolving Loan Borrowing, make available
                  from its Applicable Lending Office to the Administrative Agent
                  at the Administrative Agent's Applicable Lending Office, in
                  immediately available funds, such Bank's ratable share of such
                  Revolving Loan Borrowing. Subject to the satisfaction of all
                  applicable conditions

                                       22
<PAGE>   28

                  precedent, after receipt by the Administrative Agent of such
                  funds, the Administrative Agent shall, by 4:00 p.m. (local
                  time at the Applicable Lending Office of the Administrative
                  Agent), on the date requested for such Revolving Loan
                  Borrowing make such Revolving Loan Borrowing available to the
                  Borrower in immediately available funds at any account of
                  Borrower which is designated in writing by the Borrower to the
                  Administrative Agent.

                           (ii) Unless the Administrative Agent shall have
                  received notice from a Bank before the date of any Revolving
                  Loan Borrowing that such Bank shall not make available to the
                  Administrative Agent such Bank's ratable share of such
                  Revolving Loan Borrowing, the Administrative Agent may assume
                  that such Bank has made its ratable share of such Revolving
                  Loan Borrowing available to the Administrative Agent on the
                  date of such Revolving Loan Borrowing in accordance with
                  paragraph (i) above and the Administrative Agent may, in
                  reliance upon such assumption make available to the Borrower
                  on such date a corresponding amount. If and to the extent that
                  such Bank shall not have so made its ratable share of such
                  Revolving Loan Borrowing available to the Administrative
                  Agent, such Bank agrees that it shall pay interest on such
                  amount for each day from the date such amount is made
                  available to the Borrower by the Administrative Agent until
                  the date such amount is paid to the Administrative Agent by
                  such Bank at the Federal Funds Rate in effect from time to
                  time, provided that with respect to such Bank if such amount
                  is not paid by such Bank by the end of the second day after
                  the Administrative Agent makes such amount available to the
                  Borrower, the interest rates specified above shall be
                  increased by a per annum amount equal to 2.00% on the third
                  day and shall remain at such increased rate thereafter.
                  Interest on such amount shall be due and payable by such Bank
                  upon demand by the Administrative Agent. If such Bank shall
                  pay to the Administrative Agent such amount and interest as
                  provided above, such amount so paid shall constitute such
                  Bank's Revolving Loan Advance as part of such Revolving Loan
                  Borrowing for all purposes of this Agreement even though not
                  made on the same day as the other Revolving Loan Advances
                  comprising such Revolving Loan Borrowing. In the event that
                  such Bank has not repaid such amount by the end of the fifth
                  day after such amount was made available to the Borrower, the
                  Borrower agrees to repay to the Administrative Agent on demand
                  such amount, together with interest on such amount for each
                  day from the date such amount was made available to the
                  Borrower until the date such amount is repaid to the
                  Administrative Agent at the interest rate charged to the
                  Borrower for such Revolving Loan Borrowing under the terms of
                  this Agreement.

                                       23
<PAGE>   29

                           (iii) The failure of any Bank to make available its
                  ratable share of any Revolving Loan Borrowing shall not
                  relieve any other Bank of its obligation, if any, to make
                  available its ratable share of such Revolving Loan Borrowing.
                  No Bank shall be responsible for the failure of any other Bank
                  to honor such other Bank's obligations hereunder, including
                  any failure to make available any funds as part of any
                  Revolving Loan Borrowing; provided, however, that nothing
                  contained in this Agreement shall affect Borrower's rights
                  against any Bank defaulting on its obligations hereunder,
                  including, by way of example, the failure of a Bank to make
                  available its ratable share of any Revolving Loan Borrowing.

                  (c) Prepayment.

                           (i) The Borrower may prepay without penalty the
                  outstanding principal amount of the Revolving Loan pursuant to
                  written notice given by the Borrower to the Administrative
                  Agent in writing or by telecopy not later than (A) 1:00 p.m.
                  (local time at the Applicable Lending Office of the
                  Administrative Agent) on the third Business Day before the
                  date of the proposed prepayment, in the case of the prepayment
                  of any portion of the Revolving Loan which is comprised of
                  LIBOR Tranches, or (B) 11:00 a.m. (local time at the
                  Applicable Lending Office of the Administrative Agent) on the
                  same Business Day of the proposed prepayment, in the case of
                  the prepayment of any portion of the Revolving Loan comprised
                  solely of the Prime Rate Tranche. Each such notice shall
                  specify the principal amount and Tranche or Tranches of the
                  Revolving Loan which shall be prepaid, the date of the
                  prepayment, and shall be irrevocable and binding on the
                  Borrower. Prepayments of the Revolving Loan shall be made in
                  integral multiples of $1,000,000, in the case of prepayments
                  of any LIBOR Tranches, or $100,000, in the case of prepayments
                  of the Prime Rate Tranche. If the prepayment would cause the
                  aggregate outstanding principal amount of any LIBOR Tranche
                  comprising all or any part of the Revolving Loan or the
                  aggregate outstanding principal amount of the Prime Rate
                  Tranche comprising all or any part of the Revolving Loan, to
                  be less than $1,000,000, in the case of any such LIBOR
                  Tranche, or $500,000, in the case of the Prime Rate Tranche,
                  the prepayment must be in an amount equal to the entire
                  outstanding principal amount of such LIBOR Tranche under the
                  Revolving Loan or the entire outstanding principal amount of
                  the Prime Rate Tranche under the Revolving Loan, as the case
                  may be. Upon receipt of any notice of prepayment, the
                  Administrative Agent shall give prompt notice of the intended
                  prepayment to the Banks. For each such notice given by the
                  Borrower, the Borrower shall prepay the Revolving Loan in the
                  specified amount on the specified date as set forth in such
                  notice.

                                       24
<PAGE>   30

                  The Borrower shall have no right to prepay any principal
                  amount of the Revolving Loan except as provided in this
                  Section 2.1(c)(i).

                           (ii) Each prepayment of principal of any LIBOR
                  Tranche under the Revolving Loan pursuant to this Section
                  2.1(c) shall be accompanied by payment of all accrued but
                  unpaid interest on the principal amount prepaid and any
                  amounts required to be paid pursuant to Section 2.6 as a
                  result of such prepayment.

                  (d) Repayment. The Borrower shall pay to the Administrative
         Agent for the ratable benefit of the Banks the aggregate outstanding
         principal amount of the Revolving Loan on the Revolving Loan Maturity
         Date.

                  (e) Reduction of Revolving Loan Commitments. The Borrower
         shall have the right, upon at least three Business Days' irrevocable
         notice to the Administrative Agent, to terminate in whole or reduce
         ratably in part the unused portion of the Revolving Loan Commitments;
         provided that each partial reduction shall be in the aggregate amount
         of $5,000,000 or in integral multiples of $5,000,000 in excess thereof.
         Any reduction or termination of the Revolving Loan Commitments pursuant
         to this Section 2.1(e) shall be permanent, with no obligation of the
         Banks to reinstate such Revolving Loan Commitments and the commitment
         fees provided for in Section 2.4(a) shall thereafter be computed on the
         basis of the Revolving Loan Commitments, as so reduced. Notwithstanding
         the foregoing, in no event shall the aggregate amount of the Revolving
         Commitments be reduced to an amount less than the sum of (i) the
         aggregate outstanding principal balances of the Revolving Loan Notes,
         plus (ii) the Letter of Credit Exposure, plus (iii) the outstanding
         balance of the Swing Line Note.

         2.2 Letter of Credit Facility.

                  (a) Commitment for Letters of Credit. The Issuing Bank shall,
         on the terms and conditions set forth in this Agreement and for the
         purposes set forth in Section 5.4, issue, increase, and extend Letters
         of Credit at the request of the Borrower from time to time on any
         Business Day during the period from the date of this Agreement until
         the Revolving Loan Maturity Date provided that (i) the Letter of Credit
         Exposure shall not exceed the Letter of Credit Sublimit and (ii) the
         aggregate outstanding principal amount of Revolving Loan Borrowings
         plus the Swing Line Note plus the Letter of Credit Exposure shall not
         exceed the aggregate amount of the Revolving Loan Commitments. No
         Letter of Credit may have an expiration date later than 24 months after
         its issuance date, and each Letter of Credit which is self-extending
         beyond its expiration date must be cancelable upon no more than 30 days
         notice prior to each extension period

                                       25
<PAGE>   31

         given by the Issuing Bank to the beneficiary of such Letter of Credit.
         No Letter of Credit may have an expiration date later than 18 months
         after the Revolving Loan Maturity Date unless approved by the Issuing
         Bank, the Administrative Agent, and the Banks. Each Letter of Credit
         must be in form and substance acceptable to the Issuing Bank. The
         indebtedness of the Borrower to the Issuing Bank resulting from Letters
         of Credit requested by the Borrower shall be evidenced by the Letter of
         Credit Applications made by the Borrower.

                  (b) Requesting Letters of Credit. Each Letter of Credit shall
         be issued, increased, or extended pursuant to a Letter of Credit
         Application or Letter of Credit Application Amendment, as applicable,
         given by the Borrower to the Issuing Bank in writing or by telecopy
         promptly confirmed in writing, such Letter of Credit Application or
         Letter of Credit Application Amendment being given not later than 1:00
         p.m. (local time at the Applicable Lending Office of the Administrative
         Agent) on the third Business Day before the date of the proposed
         issuance, increase, or extension of the Letter of Credit. Each Letter
         of Credit Application or Letter of Credit Application Amendment shall
         be fully completed and shall specify the information required therein
         (including the proposed form of the Letter of Credit or change
         thereto), and shall be irrevocable and binding on the Borrower. Upon
         receipt by the Issuing Bank of the Letter of Credit Application or
         Letter of Credit Application Amendment, the Issuing Bank shall give
         prompt notice thereof to the Administrative Agent, and the
         Administrative Agent shall promptly inform the Banks of the proposed
         Letter of Credit or change thereto. Subject to the satisfaction of all
         applicable conditions precedent, the Issuing Bank shall, by 4:00 p.m.
         (local time at the Applicable Lending Office of the Administrative
         Agent), on the date requested by the Borrower for the issuance,
         increase, or extension of such Letter of Credit issue, increase, or
         extend such Letter of Credit to the specified beneficiary. Upon the
         date of the issuance, increase, or extension of a Letter of Credit, the
         Issuing Bank shall be deemed to have sold to each other Bank and each
         other Bank shall be deemed to have purchased from the Issuing Bank a
         ratable participation in the related Letter of Credit or change
         thereto. The Issuing Bank shall notify the Administrative Agent of each
         Letter of Credit issued, increased, or extended and the date and amount
         of each Bank's participation in such Letter of Credit, and the
         Administrative Agent shall in turn notify the Banks.

                  (c) Reimbursements for Letters of Credit. With respect to any
         Letter of Credit and in accordance with the related Letter of Credit
         Application, the Borrower agrees to pay to the Issuing Bank upon and as
         a condition to the issuance of the related Letter of Credit or change
         thereto, fees due with respect to such Letter of Credit as specified in
         Section 2.4(b). If the Borrower does not pay upon demand of the Issuing
         Bank any amount due to the Issuing Bank under any Letter of Credit
         Application, in addition to any rights the Issuing Bank may

                                       26
<PAGE>   32

         have under such Letter of Credit Application, the Issuing Bank may upon
         written notice to the Administrative Agent request the satisfaction of
         such obligation by the making of a Revolving Loan Borrowing.
         Concurrently with such notice to the Administrative Agent, the Issuing
         Bank will use reasonable efforts to provide like notice to the
         Borrower, provided that failure to provide such notice to the Borrower
         at such time shall not invalidate the effectiveness of such request for
         a Revolving Loan Borrowing. Upon such request, the Borrower shall be
         deemed to have requested the making of a Revolving Loan Borrowing in
         the amount of such obligation and the transfer of the proceeds thereof
         to the Issuing Bank. Such Revolving Loan Borrowing shall be a Prime
         Rate Borrowing. The Administrative Agent shall promptly forward notice
         of such Revolving Loan Borrowing to the Borrower and the Banks, and
         each Bank shall, in accordance with the procedures of Section 2.1(b),
         other than limitations on the size of Revolving Loan Borrowings, and
         notwithstanding the failure of any conditions precedent, make available
         such Bank's ratable share of such Revolving Loan Borrowing to the
         Administrative Agent, and the Administrative Agent shall promptly
         deliver the proceeds thereof to the Issuing Bank for application to
         such Bank's share of the obligations under such Letter of Credit.
         Subject to the provisions of this Section 2.2(c), the Borrower hereby
         unconditionally and irrevocably authorizes, empowers, and directs the
         Issuing Bank to make such requests for Revolving Loan Borrowings on
         behalf of the Borrower, and the Banks to make Revolving Loan Advances
         to the Administrative Agent for the benefit of the Issuing Bank in
         satisfaction of such obligations. The Administrative Agent and each
         Bank may record and otherwise treat the making of such Revolving Loan
         Borrowings as the making of Revolving Loan Borrowings to the Borrower
         under this Agreement as if requested by the Borrower. Nothing herein is
         intended to release the Borrower's obligations under any Letter of
         Credit Application, but only to provide an additional method of payment
         therefor. The making of any Revolving Loan Borrowing under this Section
         2.2(c) shall not constitute a cure or waiver of any Default or Event of
         Default, other than the payment Default or Event of Default which is
         satisfied by the application of the amounts deemed advanced hereunder,
         caused by the Borrower's failure to comply with the provisions of this
         Agreement or any Letter of Credit Application.

                  (d) Prepayments of Letters of Credit. In the event that any
         Letters of Credit shall be outstanding according to their terms after
         the Revolving Loan Maturity Date, the Borrower shall pay to the
         Administrative Agent on the Revolving Loan Maturity Date an amount
         equal to the Letter of Credit Exposure allocable to such Letters of
         Credit to be held in the Letter of Credit Collateral Account and
         applied in accordance with paragraph (g) below.

                                       27
<PAGE>   33

                  (e) Credit Obligations Unconditional. The obligations of the
         Borrower and each Bank under this Agreement and the Letter of Credit
         Applications to make payments as required to reimburse the Issuing Bank
         for draws under Letters of Credit and to make other payments due in
         respect of Letters of Credit shall be unconditional and irrevocable,
         and shall be paid strictly in accordance with the terms of this
         Agreement and the Letter of Credit Applications under all
         circumstances, including: (i) any lack of validity or enforceability of
         any Letter of Credit Document; (ii) any amendment, waiver, or consent
         to departure from any Letter of Credit Document agreed to by Borrower;
         (iii) the existence of any claim, set-off, defense, or other right
         which the Borrower or any Bank may have at any time against any
         beneficiary or transferee of any Letter of Credit (or any Persons for
         whom any such beneficiary or any such transferee may be acting), the
         Issuing Bank, or any other person or entity, whether in connection with
         the transactions contemplated in this Agreement or any unrelated
         transaction; or (iv) any statement or any other document presented
         under such Letter of Credit proving to be forged, fraudulent, invalid,
         or insufficient in any respect or any statement therein being untrue or
         inaccurate in any respect where same on due examination appears to be
         regular on its face: provided, however, that nothing contained in this
         paragraph (e) shall be deemed to constitute a waiver of any remedies of
         the Borrower or any Bank in connection with the Letters of Credit or
         the Borrower's or such Bank's rights under paragraph (f) below.

                  (f) Liability of Issuing Bank. The Issuing Bank and the Banks
         shall not be liable or responsible for: (i) the use which may be made
         of any Letter of Credit or any acts or omissions of any beneficiary or
         transferee in connection therewith; (ii) the validity, sufficiency, or
         genuineness of documents related to Letters of Credit, or of any
         endorsement thereon where same on due examination appears to be regular
         on its face, even if such documents should prove to be in any or all
         respects invalid, insufficient, fraudulent, or forged; (iii) the
         performance of any transaction between Borrower or one or more of its
         Subsidiaries and any beneficiary which underlies the Letter of Credit;
         (iv) loss or destruction of any draft, demand, or document in transit
         or in the possession of others unless due to the gross negligence or
         willful misconduct of the Issuing Bank or any Bank; (v) lack of
         knowledge of any particular trade usage (other than standard United
         States and Western European banking usage as used in the normal course
         of business) unless such lack of knowledge is due to the gross
         negligence or willful misconduct of the Issuing Bank or any other Bank;
         or (vi) any other circumstances reasonably similar to the above in
         making or failing to make payment under any Letter of Credit (INCLUDING
         THE ISSUING BANK'S OWN NEGLIGENCE, except as expressly provided below);
         except that the Issuing Bank shall be liable to the Borrower or any
         Bank to the extent of any direct, as opposed to consequential, damages
         suffered by the Borrower or such Bank which the Borrower or such Bank
         proves were caused by (A) the Issuing

                                       28
<PAGE>   34

         Bank's gross negligence or willful misconduct in determining whether
         documents presented under a Letter of Credit comply with the terms of
         such Letter of Credit, (B) the Issuing Bank's willful or grossly
         negligent failure to make or delay in making lawful payment under any
         Letter of Credit after the presentation to it of documentation strictly
         complying with the terms and conditions of such Letter of Credit, (C)
         the Issuing Bank's payment of greater than the maximum amount permitted
         under any Letter of Credit, or (D) the Issuing Bank's negligence in the
         handling of money.

                  (g) Letter of Credit Collateral Account.

                           (i) If the Borrower is required to deposit funds in
                  the Letter of Credit Collateral Account pursuant to Sections
                  2.2(d) or 6.4, then the Borrower and the Administrative Agent
                  shall establish the Letter of Credit Collateral Account and
                  the Borrower shall execute any documents and agreements,
                  including the Administrative Agent's standard form assignment
                  of deposit accounts, that the Administrative Agent reasonably
                  requests in connection therewith to establish the Letter of
                  Credit Collateral Account and grant the Administrative Agent a
                  first priority security interest in such account and the funds
                  therein. The Borrower hereby pledges to the Administrative
                  Agent and grants the Administrative Agent a security interest
                  in the Letter of Credit Collateral Account, whenever
                  established, all funds held in the Letter of Credit Collateral
                  Account from time to time, and all proceeds thereof as
                  security for the payment of the Credit Obligations.

                           (ii) Funds held in the Letter of Credit Collateral
                  Account shall be held as cash collateral for obligations with
                  respect to Letters of Credit and promptly applied by the
                  Administrative Agent at the request of the Issuing Bank to any
                  reimbursement or other obligations under Letters of Credit
                  that exist or occur. To the extent that any surplus funds are
                  held in the Letter of Credit Collateral Account above the
                  Letter of Credit Exposure, during the existence of an Event of
                  Default the Administrative Agent may (A) hold such surplus
                  funds in the Letter of Credit Collateral Account as cash
                  collateral for the Credit Obligations or (B) apply such
                  surplus funds to any Credit Obligations in accordance with
                  Section 6.9. If no Default exists, the Administrative Agent
                  shall release to the Borrower at the Borrower's written
                  request any funds held in the Letter of Credit Collateral
                  Account above the amounts required by Section 2.2(d).

                           (iii) Funds held in the Letter of Credit Collateral
                  Account shall be invested in money market funds of the
                  Administrative Agent or in another

                                       29
<PAGE>   35

                  investment if mutually agreed upon by the Borrower and the
                  Administrative Agent, but the Administrative Agent shall have
                  no other obligation to make any other investment of the funds
                  therein. The Administrative Agent shall exercise reasonable
                  care in the custody and preservation of any funds held in the
                  Letter of Credit Collateral Account and shall be deemed to
                  have exercised such care if such funds are accorded treatment
                  substantially equivalent to that which the Administrative
                  Agent accords its own property, it being understood that the
                  Administrative Agent shall not have any responsibility for
                  taking any necessary steps to preserve rights against any
                  parties with respect to any such funds.

         2.3 Swing Line Facility.

                  (a) Commitment. The Swing Line Lender agrees, on the terms and
         conditions set forth in the Swing Line Note and this Agreement, to make
         advances to the Borrower under the Swing Line Note. No Bank (other than
         the Swing Line Lender) shall have any rights thereunder (but each Bank
         shall have the obligation to reimburse the Swing Line Lender in
         accordance with paragraph (d) below). The indebtedness of the Borrower
         to the Swing Line Lender resulting from the advances under the Swing
         Line Note made by the Swing Line Lender shall be evidenced by the Swing
         Line Note made by the Borrower. Subject to the terms and conditions of
         this Section 2.3 and Article 5, Borrower may repay, and reborrow under
         the Swing Line Note.

                  (b) Interest. Interest shall accrue on the outstanding balance
         of the Swing Line Note at the Base Rate plus the Applicable Margin. The
         Borrower shall pay to the Swing Line Lender all accrued but unpaid
         interest on the outstanding principal amount of the Swing Line Note on
         the last day of each calendar quarter and on the Revolving Loan
         Maturity Date.

                  (c) Repayment. The Borrower shall pay to the Swing Line Lender
         the aggregate outstanding principal amount of the Swing Line Loan on
         the Revolving Loan Maturity Date.

                  (d) Reimbursements for Swing Line Loan Obligations. With
         respect to the Swing Line Loan and the interest accruing thereon, the
         Borrower agrees to pay to the Swing Line Lender such amounts when due
         and payable to the Swing Line Lender under the Swing Line Note. At any
         time (including, without limitation, in the event the Borrower does not
         pay to the Swing Line Lender any amounts when due and payable to the
         Swing Line Lender under the Swing Line Note or if any other Default or
         Event of Default is then continuing), in addition to any rights the
         Swing Line Lender may have under such Swing Line Note, the

                                       30
<PAGE>   36

         Swing Line Lender may upon written notice to the Administrative Agent
         request the making of a Revolving Loan Advance in the amount of any
         amounts outstanding under the Swing Line Note. Upon such request,
         Borrower shall be deemed to have requested a Revolving Loan Advance in
         the amount outstanding under the Swing Line Note and the transfer of
         the proceeds thereof to the Swing Line Lender for application to the
         balance of the Swing Line Note. Such Revolving Loan Borrowing shall be
         a Prime Rate Borrowing. The Administrative Agent shall promptly forward
         notice of such Revolving Loan Advance to the Borrower and the Banks,
         and each Bank shall, in accordance with the procedures of Section
         2.1(b) and elsewhere in this Agreement, and notwithstanding the failure
         of any conditions precedent in Section 3.2, make available such Bank's
         pro rata portion of such Revolving Loan Advance to the Administrative
         Agent, and the Administrative Agent shall promptly deliver the proceeds
         thereof to the Swing Line Lender for application to such amounts owed
         to the Swing Line Lender under the Swing Line Note. Borrower hereby
         unconditionally and irrevocably authorizes, empowers, and directs the
         Swing Line Lender to make such requests for Revolving Loan Advances on
         behalf of the Borrower, and the Banks to make Revolving Loan Advances
         to the Administrative Agent for the benefit of the Swing Line Lender in
         satisfaction of such obligations subject to the provisions of this
         Section 2.3(d). The Administrative Agent and each Bank may record and
         otherwise treat the making of such Revolving Loan Advances as the
         making of a Revolving Loan Advance to the Borrower under this Agreement
         as if requested by the Borrower. Nothing herein is intended to release
         the Borrower's obligations under the Swing Line Note, but only to
         provide an additional method of payment therefor. The making of any
         Revolving Loan Advance under this Section 2.3(d) shall not constitute a
         cure or waiver of any Default or Event of Default other than the
         payment Default or Event of Default which is satisfied by the
         application of the amounts deemed advanced hereunder, caused by the
         Borrower's failure to comply with the provisions of this Agreement or
         the Swing Line Note.

                  (e) Limitation on Swing Line Loan Availability. The amount of
         any advance under the Swing Line Note, when added to the outstanding
         principal balance of the Swing Line Note, shall in no event exceed
         $10,000,000.00, and such amount shall not in any event exceed an amount
         equal to the aggregate amount of the Revolving Loan Commitments, minus
         the Revolving Loans, minus the Letter of Credit Exposure, minus the
         outstanding principal balance of the Swing Line Note.

                  (f) Reimbursement. The Swing Line Lender may enforce its right
         to reimbursement from Administrative Agent under Section 2.3(d) from
         payments and other amounts received from time to time by Administrative
         Agent for application to the Credit Obligations (including, without
         limitation, from

                                       31
<PAGE>   37

         payments made on the Revolving Loan and the liquidation of collateral)
         prior to the payment of such amounts by Administrative Agent to Banks,
         even if the reimbursement rights of the Swing Line Lender are enforced
         after the receipt of such amounts by Administrative Agent.

                  (g) Prepayment. The Borrower may prepay without penalty the
         outstanding principal amount of the Swing Line Loan pursuant to written
         notice given by the Borrower to the Administrative Agent in writing or
         by telecopy not later than 11:00 a.m. (local time at the Applicable
         Lending Office of the Administrative Agent) on the same Business Day of
         the proposed prepayment.

         2.4 Fees.

                  (a) Commitment Fees. The Borrower shall pay to the
         Administrative Agent for the ratable benefit of the Banks an unused
         commitment fee in an amount equal to the product of the Applicable
         Margin for unused commitment fees in effect from time to time
         multiplied by the average daily amount by which (i) the aggregate
         amount of the Revolving Loan Commitments exceeds (ii) the aggregate
         outstanding principal amount of the Revolving Loan plus the Letter of
         Credit Exposure. The unused commitment fee shall be due and payable in
         arrears on the last day of each calendar quarter and on the Revolving
         Loan Maturity Date.

                  (b) Fees for Letters of Credit. For each Letter of Credit
         issued by the Issuing Bank, the Borrower shall pay to the
         Administrative Agent for the ratable benefit of the Banks a letter of
         credit fee equal to the Applicable Margin for letter of credit fees per
         annum on the face amount of such Letter of Credit for the stated term
         of such Letter of Credit, with a minimum fee of $500. In addition, for
         each Letter of Credit issued by the Issuing Bank after the syndication
         by Bank of America of all or any part of its interest in its Revolving
         Loan Commitment, the Borrower shall pay to the Administrative Agent for
         the benefit of the Issuing Bank a fronting fee of 1/8% per annum on the
         face amount of such Letter of Credit for the stated term of such Letter
         of Credit, with a minimum fee of $500. The Borrower shall pay each such
         letter of credit fee for each Letter of Credit quarterly in arrears
         within ten days after when billed therefor by the Issuing Bank.

                  (c) Engagement Letter. The Borrower shall pay to Bank of
         America the fees payable to Bank of America as provided for in the
         Engagement Letter.

                                       32
<PAGE>   38

         2.5 Revolving Loan Interest.

                  (a) Election of Interest Rate Basis. The Borrower may select
         the interest rate basis for the Revolving Loan in accordance with the
         terms of this Section 2.5(a):

                           (i) Under the Revolving Loan Borrowing Request
                  provided to the Administrative Agent in connection with the
                  making of each Revolving Loan Borrowing, the Borrower shall
                  select the amount and the Type of the Tranches, and for each
                  LIBOR Tranche selected, any permitted Interest Period for each
                  such LIBOR Tranche, which will comprise such Revolving Loan
                  Borrowing, provided that (A) at no time shall there be more
                  than seven separate LIBOR Tranches outstanding and (B) each
                  LIBOR Tranche must be in a principal amount equal to or
                  greater than $1,000,000 and be made in multiples of
                  $1,000,000, and the Prime Rate Tranche must be in a principal
                  amount equal to or greater than $500,000 and be made in
                  multiples of $100,000. Such interest rate elections must be
                  provided to the Administrative Agent in writing or by telecopy
                  not later than 1:00 p.m. (local time at the Applicable Lending
                  Office of the Administrative Agent) on the third Business Day
                  before the date of any proposed Revolving Loan Borrowing
                  comprised of a LIBOR Tranche or 11:00 a.m. (local time at the
                  Applicable Lending Office of the Administrative Agent) on the
                  same day of any proposed Revolving Loan Borrowing which is a
                  Prime Rate Borrowing. The Administrative Agent shall promptly
                  forward copies of such interest rate elections to the Banks.
                  In the case of any Revolving Loan Borrowing comprised of a
                  LIBOR Tranche upon determination by the Administrative Agent,
                  the Administrative Agent shall promptly notify the Borrower
                  and the Banks of the applicable interest rate for such
                  Tranche.

                           (ii) With respect to any Tranche, the Borrower may
                  continue or convert any portion of any LIBOR Tranche or the
                  Prime Rate Tranche to form new LIBOR Tranches or increase or
                  decrease the amount of the Prime Rate Tranche in accordance
                  with this paragraph. Each such continuation or conversion
                  shall be deemed to create a new LIBOR Tranche or increase or
                  decrease the amount of the Prime Rate Tranche, as applicable,
                  for all purposes of this Agreement. Each such continuation or
                  conversion shall be made pursuant to a Continuation/Conversion
                  Request given by the Borrower to the Administrative Agent in
                  writing or by telecopy not later than 1:00 p.m. (local time at
                  the Applicable Lending Office of the Administrative Agent) on
                  the third Business Day before the date of the proposed
                  continuation or conversion in the case of LIBOR conversions,
                  and on the same Business Day of the proposed continuation

                                       33
<PAGE>   39

                  or conversion in the case of Base Rate conversions. Each
                  Continuation/Conversion Request shall be fully completed and
                  shall specify the information required therein, and shall be
                  irrevocable and binding on the Borrower. The Administrative
                  Agent shall promptly forward notice of the continuation or
                  conversion to the Banks. In the case of any continuation or
                  conversion into LIBOR Tranches, upon determination by the
                  Administrative Agent, the Administrative Agent shall notify
                  the Borrower and the Banks of the applicable interest rate.
                  Continuations and conversions of LIBOR Tranches shall be made
                  in integral multiples of $1,000,000, and continuations and
                  conversions of the Prime Rate Tranche shall be made in
                  integral multiples of $100,000. No continuation or conversion
                  shall be permitted if such continuation or conversion would
                  cause the aggregate outstanding principal amount of any LIBOR
                  Tranche which would remain outstanding to be less than
                  $1,000,000, or the aggregate outstanding principal amount of
                  the Prime Rate Tranche which would remain outstanding to be
                  less than $500,000. Any conversion of an existing LIBOR
                  Tranche is subject to Section 2.5. Subject to the satisfaction
                  of all applicable conditions precedent, the Administrative
                  Agent and the Banks shall before close of business on the date
                  requested by the Borrower for the continuation or conversion,
                  make such continuation or conversion.

                           (iii) At the end of the Interest Period for any LIBOR
                  Tranche if the Borrower has not continued or converted such
                  LIBOR Tranche into new Tranches as provided for in paragraph
                  (ii) above, the Borrower shall be deemed to have continued
                  such LIBOR Tranche as a new LIBOR Tranche with an Interest
                  Period of one month. All of the Prime Rate Tranche shall
                  continue as the Prime Rate Tranche unless the Borrower
                  converts such Prime Rate Tranche as provided for in paragraph
                  (ii) above.

                  (b) LIBOR Tranches. Each LIBOR Tranche shall bear interest
         during its Interest Period at a per annum interest rate equal to the
         sum of the LIBOR for such Tranche plus the Applicable Margin for LIBOR
         Tranches in effect from time to time. The Borrower shall pay to
         Administrative Agent for the ratable benefit of the Banks all accrued
         but unpaid interest on each LIBOR Tranche on the last day of the
         applicable Interest Period for such LIBOR Tranche (and with respect to
         LIBOR Tranches with Interest Periods of greater than three months, on
         the date which is three months after the first date of the Interest
         Period for such LIBOR Tranche), when required upon prepayment as
         specified elsewhere in this Agreement, on any date when such LIBOR
         Tranche is prepaid in full, and on the Revolving Loan Maturity Date.

                                       34
<PAGE>   40

                  (c) Prime Rate Tranche. The Prime Rate Tranche shall bear
         interest at a per annum interest rate equal to the Base Rate in effect
         from time to time plus the Applicable Margin for the Prime Rate Tranche
         in effect from time to time. The Borrower shall pay to the
         Administrative Agent for the ratable benefit of the Banks all accrued
         but unpaid interest on the aggregate outstanding principal amount of
         the Prime Rate Tranche on the last day of each calendar quarter, on any
         date the Prime Rate Tranche is prepaid in full, and on the Revolving
         Loan Maturity Date.

                  (d) Usury Protection.

                           (i) If, with respect to any Bank and the Borrower,
         the effective rate of interest contracted for by such Bank with the
         Borrower under the Credit Documents, including the stated rates of
         interest contracted for hereunder and any other amounts contracted for
         under the Credit Documents which are deemed to be interest, at any time
         exceeds the Highest Lawful Rate, then the outstanding principal amount
         of the loans made by such Bank to the Borrower hereunder shall bear
         interest at a rate which would make the effective rate of interest on
         the loans made by such Bank to the Borrower under the Credit Documents
         equal the Highest Lawful Rate until the difference between the amounts
         which would have been due by the Borrower to such Bank at the stated
         rates and the amounts which were due by the Borrower to such Bank at
         the Highest Lawful Rate (the "LOST INTEREST") has been recaptured by
         such Bank. If, when the loans made hereunder are repaid in full, the
         Lost Interest has not been fully recaptured by such Bank pursuant to
         the preceding paragraph, then, to the extent permitted by law, the
         interest rates charged by such Bank to the Borrower hereunder shall be
         retroactively increased such that the effective rate of interest on the
         loans made by such Bank to the Borrower under the Credit Documents was
         at the Highest Lawful Rate since the effectiveness of this Agreement to
         the extent necessary to recapture the Lost Interest not recaptured
         pursuant to the preceding sentence and, to the extent allowed by law,
         the Borrower shall pay to such Bank the amount of the Lost Interest
         remaining to be recaptured by such Bank.

                           (ii) In calculating all sums paid or agreed to be
         paid to any Bank by the Borrower for the use, forbearance, or detention
         of money under the Credit Documents, such amounts shall, to the extent
         permitted by applicable law, be amortized, prorated, allocated, and
         spread in equal parts throughout the term of the Credit Documents.

                           (iii)    NOTWITHSTANDING THE FOREGOING OR ANY OTHER
         TERM IN THIS AGREEMENT AND THE CREDIT DOCUMENTS TO THE CONTRARY, it is
         the intention of each Bank and the Borrower to conform

                                       35
<PAGE>   41

         strictly to any applicable usury laws. Accordingly, if any Bank
         contracts for, charges, or receives any consideration from the Borrower
         which constitutes interest in excess of the Highest Lawful Rate, then
         any such excess shall be canceled automatically and, if previously
         paid, shall at such Bank's option be applied to the outstanding amount
         of the loans made hereunder by such Bank to the Borrower or be refunded
         to the Borrower.

         2.6 Breakage Costs. If (i) any payment of principal on or any
conversion of any LIBOR Tranche is made on any date other than the last day of
the Interest Period for such LIBOR Tranche, whether as a result of any voluntary
or mandatory prepayment (other than a prepayment upon the occurrence of any
event subject to Section 2.8 or 2.9), any acceleration of maturity, or any other
cause, (ii) any payment of principal on any LIBOR Tranche is not made when due,
or (iii) any LIBOR Tranche is not borrowed, converted, or prepaid in accordance
with the respective notice thereof provided by the Borrower to the
Administrative Agent, whether as a result of any failure to meet any applicable
conditions precedent for borrowing, conversion, or prepayment, the permitted
cancellation of any request for borrowing, conversion, or prepayment, the
failure of the Borrower to provide the respective notice of borrowing,
conversion, or prepayment, or any other cause not specified above which is
created by the Borrower, then the Borrower shall pay to each Bank upon demand
any amounts required to compensate such Bank for any costs or expenses,
including administrative expenses, which are reasonably allocable to such
action, including costs and expenses related to the liquidation or redeployment
of funds acquired or designated by such Bank to fund or maintain such Bank's
ratable share of such LIBOR Tranche or related to the reacquisition or
redesignation of funds by such Bank to fund or maintain such Bank's ratable
share of such LIBOR Tranche following any liquidation or redeployment of such
funds caused by such action. Such Bank need not prove matched funding of any
particular funds, and a certificate as to the amount of such cost or expense
detailing the calculation thereof and certifying that such Bank customarily
charges such amounts to its other customers in similar circumstances submitted
by such Bank to the Borrower shall be conclusive and binding for all purposes,
absent manifest error, and if so paid, no Default or Event of Default shall be
deemed to have occurred as a result of the nonpayment.

         2.7 Increased Costs.

                  (a) Cost of Funds. If due to either (i) any introduction of,
         change in, or change in the interpretation of any law or regulation, in
         each case, after the date of this Agreement or (ii) compliance with any
         guideline or request from any central bank or other governmental
         authority having appropriate jurisdiction (whether or not having the
         force of law) given after the date of this Agreement, there shall be
         any increase in the costs of any Bank attributable to (x) committing to
         make any Revolving Loan Advance or obtaining funds for the

                                       36
<PAGE>   42

         making, funding, or maintaining of such Bank's ratable share of any
         LIBOR Tranche in the relevant interbank market or (y) committing to
         make Letters of Credit or issuing, funding, participating in, or
         maintaining Letters of Credit (including any increase in any applicable
         reserve requirement specified by the Federal Reserve Board, including
         those for emergency, marginal, supplemental, or other reserves), then
         the Borrower shall pay to such Bank upon demand any amounts required to
         compensate such Bank for such increased costs, such amounts being due
         and payable upon demand by such Bank. A certificate as to the cause and
         amount of such increased cost detailing the calculation of such cost
         and certifying that such Bank customarily charges such amounts to its
         other customers in similar circumstances submitted by such Bank to the
         Borrower shall be conclusive and binding for all purposes, absent
         manifest error. No Bank may make any claim for compensation under this
         Section 2.7(a) for increased costs incurred before 90 days prior to the
         delivery of any such certificate.

                  (b) Capital Adequacy. If, due to either (i) any introduction
         of, change in, or change in the interpretation of any law or
         regulation, in each case, after the date of this Agreement or (ii)
         compliance with any guideline or request from any central bank or other
         governmental authority having appropriate jurisdiction (whether or not
         having the force of law) given after the date of this Agreement, there
         shall be any increase in the capital requirements of any Bank or its
         parent or holding company attributable to (x) committing to make
         Revolving Loan Advances or making, funding, or maintaining Revolving
         Loan Advances or (y) committing to make Letters of Credit or issuing
         funding, participating in, or maintaining Letters of Credit, as such
         capital requirements are allocated by such Bank, then the Borrower
         shall pay to such Bank upon demand any amounts required to compensate
         such Bank or its parent or holding company for such increase in costs
         (including an amount equal to any reduction in the rate of return on
         assets or equity of such Bank or its parent or holding company), such
         amounts being due and payable upon demand by such Bank. A certificate
         as to the cause and amounts detailing the calculation of such amounts
         and certifying that such Bank customarily charges such amounts to its
         other customers in similar circumstances submitted by such Bank to the
         Borrower shall be conclusive and binding for all purposes, absent
         manifest error. No Bank may make any claim for compensation under this
         Section 2.7(b) for increased costs incurred before 90 days prior to the
         delivery of any such certificate.

         2.8 Illegality. Notwithstanding any other provision in this Agreement,
if it becomes unlawful for any Bank to obtain deposits or other funds for making
or funding such Bank's ratable share of any LIBOR Tranche in the relevant
interbank market, such Bank shall so notify the Borrower and the Administrative
Agent and such Bank's commitment to create LIBOR Tranches shall be suspended
until such unlawful

                                       37
<PAGE>   43

condition has passed, all LIBOR Tranches applicable to such Bank shall be
converted to the Prime Rate Tranche as of the end of each applicable Interest
Period or earlier if necessary to prevent such unlawful condition, and all
subsequent requests for LIBOR Tranches shall be deemed to be requests for Prime
Rate Borrowings or continuations and conversions of the Prime Rate Tranche, as
applicable, with respect to such Bank.

         2.9 Market Failure. Notwithstanding any other provision in this
Agreement, if the Administrative Agent determines (on its own behalf or after
having been notified thereof by Banks constituting Majority Banks) that: (a)
quotations of interest rates for the relevant deposits referred to in the
definition of "LIBOR" are not being provided in the relevant amounts, or
maturities for purposes of determining the rate of interest referred to in the
definition of "LIBOR" or (b) the relevant rates of interest referred to in the
definition of "LIBOR" which are used as the basis to determine the rate of
interest for LIBOR Tranches will not adequately cover the cost to any Bank of
making or maintaining such Bank's ratable share of any LIBOR Tranche, then the
Administrative Agent shall notify the Borrower that the Administrative Agent and
the Banks' commitment to create LIBOR Tranches shall be suspended until such
condition has passed, all LIBOR Tranches shall be converted to the Prime Rate
Tranche as of the end of each applicable Interest Period or earlier if
necessary, and all subsequent requests for LIBOR Tranches shall be deemed to be
requests for Prime Rate Borrowings or continuations and conversions of the Prime
Rate Tranche, as applicable with respect to such Bank.

         2.10 Payment Procedures and Computations.

                  (a) Payment Procedures. Time is of the essence in this
         Agreement and the Credit Documents. All payments hereunder shall be
         made in Dollars. The Borrower shall make each payment under this
         Agreement and under the Revolving Loan Notes and the Swing Line Note
         not later than 12:00 noon (local time at the Applicable Lending Office
         of the Administrative Agent) on the day when due to the Administrative
         Agent at the Administrative Agent's Applicable Lending Office in
         immediately available funds. All payments by the Borrower hereunder
         shall be made without any offset, abatement, withholding, deduction,
         counterclaim, or reduction. Upon receipt of payment from the Borrower
         of any principal, interest, or fees due to the Banks, the
         Administrative Agent shall promptly after receipt thereof distribute to
         the Banks their ratable share of such payments for the account of their
         respective Applicable Lending Offices. If and to the extent that the
         Administrative Agent shall not have so distributed to any Bank its
         ratable share of such payments, the Administrative Agent agrees that it
         shall pay interest on such amount for each day after the day when such
         amount is made available to the Administrative Agent by the Borrower
         until the date such amount is paid to such Bank by the Administrative
         Agent at the Federal Funds Rate in effect from time to time, provided
         that if such amount is

                                       38
<PAGE>   44

         not paid by the Administrative Agent by the end of the third day after
         the Borrower makes such amount available to the Administrative Agent,
         the interest rates specified above shall be increased by a per annum
         amount equal to 2.00% on the fourth day and shall remain at such
         increased rate thereafter. Interest on such amount shall be due and
         payable by the Administrative Agent upon demand by such Bank. Upon
         receipt of other amounts due solely to the Administrative Agent, the
         Issuing Bank, the Swing Line Lender, or a specific Bank, the
         Administrative Agent shall distribute such amounts to the appropriate
         party to be applied in accordance with the terms of this Agreement.

                  (b) Administrative Agent Reliance. Unless the Administrative
         Agent shall have received written notice from the Borrower prior to any
         date on which any payment is due to the Banks that the Borrower shall
         not make such payment in full, the Administrative Agent may assume that
         the Borrower has made such payment in full to the Administrative Agent
         on such date and the Administrative Agent may, in reliance upon such
         assumption, cause to be distributed to each Bank on such date an amount
         equal to the amount then due such Bank. If and to the extent the
         Borrower shall not have so made such payment in full to the
         Administrative Agent, each Bank shall repay to the Administrative Agent
         forthwith on demand such amount distributed to such Bank, together with
         interest thereon from the date such amount is distributed to such Bank
         until the date such Bank repays such amount to the Administrative
         Agent, at an interest rate equal to the Federal Funds Rate in effect
         from time to time, provided that with respect to such Bank, if such
         amount is not repaid by such Bank by the end of the second day after
         the date of the Administrative Agent's demand, the interest rates
         specified above shall be increased by a per annum amount equal to 2.00%
         on the third day after the date of the Administrative Agent's demand
         and shall remain at such increased rate thereafter.

                  (c) Sharing of Payments. Each Bank agrees that if it should
         receive any payment (whether by voluntary payment, by realization upon
         security, by the exercise of the right of setoff or banker's lien, by
         counterclaim or cross action, by the enforcement of any right under the
         Credit Documents, or otherwise) in respect of any obligation of the
         Borrower to pay principal, interest, fees, or any other obligation
         incurred under the Credit Documents in a proportion greater than the
         total amount of such principal, interest, fees, or other obligation
         then owed and due by the Borrower to such Bank bears to the total
         amount of principal, interest, fees, or other obligation then owed and
         due by the Borrower to all of the Banks immediately prior to such
         receipt, then such Bank receiving such excess payment shall purchase
         for cash without recourse from the other Banks an interest in the
         obligations of the Borrower to such Banks in such amount as shall
         result in a participation by all of the Banks, in

                                       39
<PAGE>   45

         proportion with the Banks' respective pro rata shares, in the aggregate
         unpaid amount of principal, interest, fees, or any such other
         obligation, as the case may be, owed by the Borrower to all of the
         Banks; provided that if all or any portion of such excess payment is
         thereafter recovered from such Bank, such purchase shall be rescinded
         and the purchase price restored to the extent of such recovery in
         proportion with the Banks' respective pro rata shares, but without
         interest.

                  (d) Authority to Charge Accounts. The Administrative Agent, if
         and to the extent payment owed to the Administrative Agent or any Bank
         is not made when due and such failure constitutes an Event of Default,
         may charge from time to time against any account of the Borrower with
         the Administrative Agent any amount so due. The Administrative Agent
         agrees promptly to notify the Borrower after any such charge and
         application made by the Administrative Agent provided that the failure
         to give such notice shall not affect the validity of such charge and
         application.

                  (e) Interest and Fees. Unless expressly provided for in this
         Agreement, (i) all computations of interest based on the Prime Rate
         (including the Base Rate, when applicable) shall be made on the basis
         of a 365/366 day year, as the case may be, (ii) all computations of
         interest based on the Federal Funds Rate (including the Base Rate, when
         applicable) shall be made on the basis of a 360 day year, (iii) all
         computations of interest based upon the LIBOR shall be made on the
         basis of a 360 day year, and (iv) all computations of fees shall be
         made on the basis of a 360 day year, in each case for the actual number
         of days (including the first day, but excluding the last day) occurring
         in the period for which such interest or fees are payable. Each
         determination by the Administrative Agent of an interest rate or fee
         shall be conclusive and binding, for all purposes, absent manifest
         error.

                  (f) Payment Dates. Whenever any payment shall be stated to be
         due on a day other than a Business Day, such payment shall be made on
         the next succeeding Business Day, and such extension of time shall in
         such case be included in the computation of payment of interest or
         fees, as the case may be. If the time for payment for an amount payable
         is not specified in this Agreement or in any other Credit Document, the
         payment shall be due and payable on demand by the Administrative Agent
         or the applicable Bank.

         2.11 Taxes.

                  (a) No Deduction for Certain Taxes. Any and all payments by
         the Borrower shall be made free and clear of and without deduction for
         any and all present or future taxes, levies, imposts, deductions,
         charges, or withholdings,

                                       40
<PAGE>   46

         and all liabilities with respect thereto, other than taxes imposed on
         the income and franchise taxes imposed on the Administrative Agent, any
         Bank, or the Applicable Lending Office thereof by any jurisdiction in
         which any such entity is a citizen or resident or any political
         subdivision of such jurisdiction (all such nonexcluded taxes, levies,
         imposts, deductions, charges, withholdings, and liabilities being
         hereinafter referred to as "TAXES"). If the Borrower shall be required
         by law to deduct any Taxes from or in respect of any sum payable to the
         Administrative Agent, any Bank, or the Applicable Lending Office
         thereof, (i) the sum payable shall be increased as may be necessary so
         that after making all required deductions (including deductions
         applicable to additional sums payable under this Section 2.11), such
         Person receives an amount equal to the sum it would have received had
         no such deductions been made; (ii) the Borrower shall make such
         deductions; and (iii) the Borrower shall pay the full amount deducted
         to the relevant taxation authority or other authority in accordance
         with applicable law.

                  (b) Other Taxes. The Borrower agrees to pay any present or
         future stamp or documentary taxes or any other excise or property
         taxes, charges, or similar levies which arise from any payment made or
         from the execution, delivery, or registration of, or otherwise with
         respect to, this Agreement or the other Credit Documents (other than
         those which become due as a result of any Bank joining this Agreement
         as a result of any Assignment and Acceptance, which shall be paid by
         the Bank which becomes a Bank hereunder as a result of such Assignment
         and Acceptance).

                  (c) TAX INDEMNITY. BORROWER AGREES TO INDEMNIFY EACH BANK AND
         THE ADMINISTRATIVE AGENT FOR THE FULL AMOUNT OF TAXES AND OTHER TAXES
         PAID BY SUCH BANK OR THE ADMINISTRATIVE AGENT AND ANY LIABILITY
         (INCLUDING PENALTIES, INTEREST, AND EXPENSES) ARISING THEREFROM OR WITH
         RESPECT THERETO, EXCEPT THAT THE FOREGOING SHALL NOT COVER TAXES AND
         OTHER TAXES PAID AS A DIRECT RESULT OF THE ADMINISTRATIVE AGENT'S OR
         ANY BANK'S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT.

                  (d) Foreign Bank Withholding Exemption. Each Bank and Issuing
         Bank that is not incorporated under the laws of the United States of
         America or a state thereof agrees that it shall deliver to the Borrower
         and the Administrative Agent (i) two duly completed copies of United
         States Internal Revenue Service Form 1001 or 4224 or successor
         applicable form, as the case may be, certifying in each case that such
         Bank is entitled to receive payments under this Agreement and the
         Revolving Loan Notes payable to it, without deduction or withholding of
         any United States federal income taxes, (ii) if applicable, an Internal
         Revenue Service Form W-8 or W-9 or successor applicable form, as the

                                       41
<PAGE>   47

         case may be, to establish an exemption from United States backup
         withholding tax, and (iii) any other governmental forms which are
         necessary or required under an applicable tax treaty or otherwise by
         law to reduce or eliminate any withholding tax, which have been
         reasonably requested by the Borrower. Each Bank which delivers to the
         Borrower and the Administrative Agent a Form 1001 or 4224 and Form W-8
         or W-9 pursuant to the next preceding sentence further undertakes to
         deliver to the Borrower and the Administrative Agent two further copies
         of the said letter and Form 1001 or 4224 and Form W-8 or W-9, or
         successor applicable forms, or other manner of certification, as the
         case may be, on or before the date that any such letter or form expires
         or becomes obsolete or after the occurrence of any event requiring a
         change in the most recent letter and form previously delivered by it to
         the Borrower and the Administrative Agent, and such extensions or
         renewals thereof as may reasonably be requested by the Borrower and the
         Administrative Agent certifying in the case of a Form 1001 or 4224 that
         such Bank is entitled to receive payments under this Agreement without
         deduction or withholding of any United States federal income taxes. If
         an event (including without limitation any change in treaty, law or
         regulation) has occurred prior to the date on which any delivery
         required by the preceding sentence would otherwise be required which
         renders all such forms inapplicable or which would prevent any Bank
         from duly completing and delivering any such letter or form with
         respect to it and such Bank advises the Borrower and the Administrative
         Agent that it is not capable of receiving payments without any
         deduction or withholding of United States federal income tax, and in
         the case of a Form W-8 or W-9, establishing an exemption from United
         States backup withholding tax, such Bank shall not be required to
         deliver such letter or forms. The Borrower shall withhold tax at the
         rate and in the manner required by the laws of the United States with
         respect to payments made to a Bank failing to provide the requisite
         Internal Revenue Service forms in a timely manner. Each Bank which
         fails to provide to the Borrower in a timely manner such forms shall
         reimburse the Borrower upon demand for any penalties paid by the
         Borrower as a result of any failure of the Borrower to withhold the
         required amounts that are caused by such Bank's failure to provide the
         required forms in a timely manner.

         2.12 Change of Lending Office.

                  (a) Each Bank agrees that if it makes any demand for payment
         under Section 2.7 or 2.11(a), or if any adoption or change of the type
         described in Section 2.8 shall occur with respect to it, it will use
         reasonable efforts (consistent with its internal policy and legal and
         regulatory restrictions and so long as such efforts would not be
         disadvantageous to it, as determined in its sole discretion) to
         designate a different lending office if the making of such a
         designation would reduce or obviate the need for the Borrower to make

                                       42
<PAGE>   48

         payments under Section 2.6 or 2.10(a), or would eliminate or reduce the
         effect of any adoption or change described in Section 2.7.

                  (b) If any Bank (including any participant Bank under Section
         8.5) shall assert that any adoption or change of the type described in
         Section 2.7 hereof has occurred with respect to it, or if any Bank
         (including any participant Bank under Section 8.5) requests
         compensation under Sections 2.7 or 2.8, or if the Borrower is required
         to pay any additional amount to any Bank or any authority for the
         account of any Bank pursuant to Section 2.11 then the Borrower may, at
         its expense and effort, upon notice to such Bank and the Administrative
         Agent, require such Bank to, and such Bank promptly shall, assign and
         delegate, without recourse (in accordance with and subject to the
         restrictions contained in Section 8.5), all its interests, rights, and
         obligations under this Agreement to an assignee that shall assume such
         obligations (which assignee may be another Bank, if a Bank accepts such
         assignment); provided that (i) if such assignee is not a Bank or an
         Affiliate thereof, the Borrower shall have received the prior written
         consent of the Administrative Agent and the Issuing Bank which consents
         shall not unreasonably be withheld or delayed, (ii) such Bank shall
         have received payment of an amount equal to the aggregate outstanding
         principal of such Bank's Revolving Loan Advances and its participations
         in Letters of Credit, accrued interest thereon, accrued fees and all
         other amounts payable to it hereunder, from the assignee (at least to
         the extent of such outstanding principal) and the Borrower (in the case
         of all other amounts), and (iii) in the case of any such assignment
         resulting from a claim for compensation under Sections 2.7 or 2.8 or
         payment required to be made pursuant to Section 2.11, such assignment
         will result in a reduction in such compensation or payments compared to
         the compensation or payments payable to the assigning Bank. A Bank
         shall not be required to make any such assignment and delegation if,
         prior thereto, as a result of a waiver by such Bank or otherwise, the
         circumstances entitling the Borrower to require such assignment and
         delegation no longer exist or cease to apply.

         2.13 Dormant Guarantors. Borrower and Banks agree that the Guarantors
listed in Schedule 2.13, while existing, are currently dormant and have no
assets, and that it is not intended that they will conduct any business in the
future. If Borrower elects to dissolve such dormant Guarantors (or any of them)
during the term of this Agreement, provided that such dormant Guarantors have
not conduced any business or acquired any assets since the Effective Date,
Administrative Agent shall release such dormant Guarantors from their
obligations under the Subsidiary Guaranty.

                                       43
<PAGE>   49

ARTICLE 3. CONDITIONS PRECEDENT.

         3.1 Conditions Precedent to Initial Extension of Credit. The obligation
of each Bank to make the initial extension of credit under this Agreement,
including the making of any Revolving Loan Advances and the issuance of any
Letters of Credit, and the obligation of the Swing Line Lender to make any
advances under the Swing Line Loan, shall be subject to the following conditions
precedent:

                  (a) The Administrative Agent shall have received and approved:

                           (i) Agreement. This Agreement executed by all the
                  parties hereto;

                           (ii) Notes. The duly executed Revolving Loan Notes
                  and the Swing Line Note;

                           (iii) Fees. All fees and other amounts required to be
                  paid by Borrower pursuant to the Engagement Letter and this
                  Agreement on or prior to the Effective Date;

                           (iv) Guaranties. The Subsidiary Guaranty duly
                  executed by each domestic Subsidiary of Borrower;

                           (v) Organizational Chart. A current organizational
                  chart of Borrower and its domestic Subsidiaries;

                           (vi) Opinion of Counsel. One or more opinions of
                  counsel for Borrower and its domestic Subsidiaries, opining as
                  to the existence of Borrower and such domestic Subsidiaries,
                  the enforceability of each of the Credit Documents to which
                  they are a party, and such other matters as the Administrative
                  Agent may reasonably request;

                           (vii) Charter Documents. The Charter Documents of
                  Borrower and each of its domestic Subsidiaries;

                           (viii) Certificate of Officers of Borrower and
                  Guarantors. All resolutions (and certificates as to the
                  authenticity thereof) and evidence the Administrative Agent
                  may reasonably request relating to the formation, existence
                  and good standing of Borrower and each domestic Subsidiary of
                  Borrower, corporate authority for the execution and validity
                  of this Agreement and the other Credit Documents executed and
                  delivered by the Borrower and its domestic Subsidiaries on or
                  prior to the Effective Date and any other matters relevant to
                  this Agreement;

                                       44
<PAGE>   50

                           (ix) Debt Schedule. A schedule of all Debt of
                  Borrower and its domestic Subsidiaries outstanding on the
                  Effective Date (prior to giving effect to the initial
                  Revolving Loan Advances), together with payoff letters, on
                  forms acceptable to the Administrative Agent, from the holders
                  of such Debt which is to be paid with the initial Revolving
                  Loan Advances;

                           (x) Consents. Certified copies of all documents
                  evidencing any necessary consents and governmental approvals
                  taken or obtained by Borrower and the Guarantors with respect
                  to the Credit Documents;

                           (xi) Financial Condition Certificate. A certificate
                  of the chief financial officer (or its equivalent) of Borrower
                  in substantially the form of Exhibit F;

                           (xii) Other Documents. All other Credit Documents
                  required to be provided by Administrative Agent and such other
                  documents, instruments, certificates and information as may be
                  reasonably requested by the Banks (including, without
                  limitation, receipt of the Preliminary Financial Statements).

                  (b) All legal matters incident to the execution and delivery
         of the Credit Documents shall be reasonably satisfactory to the
         Administrative Agent and the Banks, and their respective legal counsel.

         3.2 Conditions to All Loans and Letters of Credit. The obligation of
each Bank to fund any Revolving Advance or of the Swing Line Lender to make a
Swing Line Loan or of the Issuing Bank to issue, increase the amount of or
extend the expiry date of a Letter of Credit (including, without limitation, the
initial Revolving Borrowing and Letters of Credit, but excluding the Revolving
Loans to be made as required by Section 2.4(c)) is subject to the satisfaction
of the following conditions precedent:

                  (a) Notices. Timely receipt by the Administrative Agent of a
         Request for Advance or, to the extent applicable, a fully completed
         Letter of Credit Application and such other information relating to the
         requested Letter of Credit as Issuing Bank may reasonably request;

                  (b) No Material Adverse Change. No Material Adverse Change
         shall have occurred and be continuing from the Preliminary Financial
         Statements;

                  (c) New Litigation and Changes in Pending Litigation. Since
         the Effective Date, no new litigation (including, without limitation,
         derivative or injunctive actions), arbitration proceedings or
         governmental proceedings shall

                                       45
<PAGE>   51

         be pending or known to be threatened against the Borrower or any of its
         Subsidiaries which could reasonably be expected to have a Material
         Adverse Effect; and no material development (whether or not disclosed)
         shall have occurred in any litigation (including, without limitation,
         derivative or injunctive actions), arbitration proceedings or
         governmental proceedings previously disclosed, which could reasonably
         be expected to have a Material Adverse Effect;

                  (d) No Default. Immediately before and after giving effect to
         such Revolving Loan Borrowing and the application of the proceeds
         thereof or such Letter of Credit, no Default or Event of Default shall
         have occurred and be continuing;

                  (e) Representations and Warranties True and Correct. Each of
         the representations and warranties contained in this Agreement and in
         the other Credit Documents shall be true and correct in all material
         respects on and as of the date of such Loan or Letter of Credit, after
         giving effect to the requested Revolving Loan Borrowing or Letter of
         Credit (and the transactions related thereto), except that all
         representations and warranties that speak as of a particular date shall
         only be required on the date of each such Revolving Loan Borrowing or
         Letter of Credit to be true and correct in all material respects as of
         the date to which such representation or warranty speaks and not as of
         any subsequent date;

                  (f) Regulation U; Other Laws. The borrowings to be made by
         Borrower shall not result in either Borrower, the Administrative Agent
         or any Bank being in non-compliance with or in violation of Regulation
         U of the Board of Governors of the Federal Reserve System and shall not
         be prohibited by any other legal requirement (including Regulations T
         and X of the Board of Governors of the Federal Reserve System) imposed
         by the banking laws of the United States of America, and shall not
         otherwise subject the Administrative Agent or any Bank to a penalty or
         other onerous conditions under or pursuant to any legal requirement;
         and

                  (g) Acquired Business Information. If such Revolving Loan
         Borrowing is to be made to enable Borrower to finance an Acquisition
         (in whole or in part), such other information and documentation as is
         required pursuant to Section 5.21.

Each request for a Revolving Loan Borrowing and each request for the issuance
of, increase in the amount of, or extension of the expiry date of, a Letter of
Credit shall be deemed to be a representation and warranty by Borrower on the
date of such borrowing, or issuance of, increase in the amount of, or extension
of the expiry date

                                       46
<PAGE>   52

of, such Letter of Credit that all conditions precedent to such borrowing have
been satisfied or fulfilled unless Borrower gives to the Administrative Agent
written notice to the contrary, in which case no Bank shall be required to fund
such Revolving Loan Borrowing and the Issuing Bank shall not be required to
issue, increase the amount of or extend the expiry date of such Letter of Credit
unless the Majority Bank shall have previously waived in writing such
non-compliance. In the event an Event of Default shall have occurred and be
continuing, Borrower may not convert any Prime Rate Borrowing into a LIBOR
Tranche or continue any LIBOR Tranche and may only convert or continue any LIBOR
Tranche into or as a Prime Rate Borrowing in accordance with Section 2.6) hereof
and subject to the applicability of the provisions of Section 2.5 regarding
default rates of interest, and in such case, any LIBOR Tranche which has not
been accelerated pursuant to the terms hereof shall automatically convert into a
Prime Rate Borrowing at the end of the applicable Interest Period unless prior
to such time, any such Event of Default shall have been cured or waived pursuant
to the terms hereof. In the event a Default shall have occurred and be
continuing, the Borrower may only convert any Prime Rate Borrowing or continue
any LIBOR Tranche into a LIBOR Tranche with a one (1) month Interest Period.

ARTICLE 4. REPRESENTATIONS AND WARRANTIES.

         The Borrower represents and warrants to the Administrative Agent and
each Bank, and, except in cases where the following representations are
specifically limited to the date hereof, with each request for any extension of
credit hereunder, including the making of any Revolving Loan Advances, and the
issuance, increase, or extension of any Letters of Credit, again represents and
warrants to the Administrative Agent, and each Bank as follows:

         4.1 Organization.

                  (a) Borrower and each of its Subsidiaries (i) is a duly
         incorporated and existing corporation (or other Person) in good
         standing under the laws of the jurisdiction of its organization, (ii)
         has all necessary corporate power (or comparable power, in the case of
         a Subsidiary that is not a corporation) to own the property and assets
         it uses in its business and otherwise to carry on its business as
         presently conducted, and (iii) is duly licensed or qualified and in
         good standing in each jurisdiction in which the nature of the business
         transacted by it or the nature of the property owned or leased by it
         makes such licensing or qualification necessary, except where the
         failure to be so licensed or qualified could not reasonably be expected
         to have a Material Adverse Effect.

                  (b) Borrower has no Subsidiaries other than the Subsidiaries
         listed on Schedule 5.1. Borrower owns directly or indirectly through a
         Subsidiary one

                                       47
<PAGE>   53

         hundred percent (100%) of each class of capital stock or ownership
         interests of each domestic Subsidiary.

         4.2 Power and Authority; Validity. Each of the Borrower and its
domestic Subsidiaries have the corporate (or comparable power, in the case of a
Subsidiary that is not a corporation) power and authority to execute, deliver
and carry out the terms and provisions of the Credit Documents to which it is a
party and has taken all necessary corporate (or comparable action, in the case
of a Subsidiary that is not a corporation) action to authorize the execution,
delivery and performance of the Credit Documents to which it is a party. Each of
Borrower and its domestic Subsidiaries have duly executed and delivered each
such Lien Document and each such Lien Document constitutes the legal, valid and
binding obligation of such Person enforceable in accordance with its terms,
subject as to enforcement only to bankruptcy, insolvency, reorganization,
moratorium or other similar laws affecting the enforcement of creditors' rights
generally and by general principles of equity, regardless of whether in a
proceeding in equity or at law.

         4.3 No Violation. Neither the execution, delivery nor performance by
the Borrower or any of its domestic Subsidiaries of the Credit Documents to
which it is a party nor compliance by any of such Persons with the terms and
provisions thereof, nor the consummation by it of the transactions contemplated
herein or therein, will (a) contravene any applicable provision of any law,
statute, rule or regulation, or any applicable order, writ, injunction or decree
of any court or governmental instrumentality, except where such contravention
could not reasonably be expected to have a Material Adverse Effect, (b) conflict
with or result in any breach of any term, covenant, condition or other provision
of, or constitute a default under (except where such conflict, breach or default
could not reasonably be expected to have a Material Adverse Effect), or result
in the creation or imposition of (or the obligation to create or impose) any
Lien other than any Permitted Encumbrance upon any of the property or assets of
the Borrower or its domestic Subsidiaries under the terms of any contractual
obligation to which the Borrower or any of its domestic Subsidiaries is a party
or by which it or any of its properties or assets are bound or to which it may
be subject, or (c) violate or conflict with any provision of the Certificate or
Articles of Incorporation or Bylaws or other governance documents, as
applicable, of such Person.

         4.4 Litigation. There are no lawsuits (including, without limitation,
derivative or injunctive actions), arbitration proceedings or governmental
proceedings pending or, to the best knowledge of the Borrower, threatened,
involving the Borrower or any of its Subsidiaries except for such lawsuits or
other proceedings which could not reasonably be expected to have a Material
Adverse Effect and such lawsuits and proceedings disclosed in Schedule 3.4.

                                       48
<PAGE>   54

         4.5 Use of Proceeds; Margin Regulations. The proceeds of the Revolving
Loan may only be used to pay existing Debt, to provide working capital, and for
general corporate purposes (including the issuance of Letters of Credit) and for
Capital Expenditures. Neither the Borrower nor any of its Subsidiaries are
engaged in the business of extending credit for the purpose of purchasing or
carrying margin stock. No proceeds of any Loan will be used to purchase or carry
any "margin stock" (as defined in Regulation U of the Board of Governors of the
Federal Reserve System), to extend credit for the purpose of purchasing or
carrying any "margin stock," or for a purpose which violates Regulations U or X
of the Board of Governors of the Federal Reserve System.

         4.6 Investment Company Act. Neither the Borrower nor any of its
Subsidiaries is an "investment company" or a company "controlled" by an
"investment company," within the meaning of the Investment Company Act of 1940,
as amended.

         4.7 Public Utility Holding Company Act. Neither the Borrower nor any of
its Subsidiaries is a "holding company," or a "subsidiary company" of a "holding
company," or an "affiliate" of a "holding company" or of a "subsidiary company"
of a "holding company," within the meaning of the Public Utility Holding Company
Act of 1935, as amended.

         4.8 True and Complete Disclosure. All factual information (not
including estimated, financial information and other projections) heretofore or
contemporaneously furnished by Borrower or any of its Subsidiaries in writing to
the Administrative Agent or the Banks (including the Preliminary Financial
Statements) in connection with any Credit Document or any transaction
contemplated therein is, disregarding any updated, corrected, supplemented,
superceded or otherwise modified information except as so updated, corrected,
supplemented, superceded or otherwise modified and all other such factual
information hereafter furnished by any such Persons in writing to the Banks in
connection herewith, any of the other Credit Documents or the Revolving Loan
will be, true and accurate in all material respects, taken as a whole, on the
date of such information and not incomplete by omitting to state any material
fact necessary to make the information therein not misleading at such time in
light of the circumstances under which such information, taken as a whole, was
provided. All estimates, financial information and projections furnished by
Borrower or any of its Subsidiaries in writing to the Banks in connection with
any Credit Document or any transaction contemplated therein, were prepared by
Borrower in good faith based upon assumptions believed by Borrower to be
reasonable at the time such information was prepared, it being recognized by the
Administrative Agent and the Banks that such financial information as it relates
to future events is not to be viewed as fact and that actual results during the
period or periods covered by such financial information may differ from the
projected results set forth therein by a material amount.

                                       49
<PAGE>   55

         4.9 Financial Statements. The Preliminary Financial Statements,
together with the related notes and schedules, fairly presents the financial
position of Borrower and its Subsidiaries as of the dates thereof and the
results of operations for the periods covered thereby, subject to normal
year-end adjustments and omission of certain footnotes as permitted by the SEC.

         4.10 No Material Adverse Change. From June 30, 1999, there has occurred
no event or effect that has had, or to the best knowledge of Borrower could
reasonably be expected to have, a Material Adverse Effect.

         4.11 Labor Controversies. There are no labor strikes, lock-outs, slow
downs, work stoppages or similar events pending or, to the best knowledge of
Borrower, threatened, against the Borrower or any of its Subsidiaries that could
reasonably be expected to have a Material Adverse Effect.

         4.12 Taxes. Except as disclosed on Schedule 4.12, Borrower and its
Subsidiaries have filed all federal tax returns and all other material tax
returns required to be filed, and have paid all governmental taxes, rates,
assessments, fees, charges and levies (collectively, "TAXES") except such Taxes,
if any, as are being contested in good faith and for which reserves have been
provided in accordance with GAAP and except where the failure to pay such Taxes
could not reasonably be expected to have a Material Adverse Effect. Except as
disclosed on Schedule 4.12, no tax liens have been filed and no claims are being
asserted for Taxes. Except as disclosed on Schedule 4.12, the charges, accruals
and reserves on the books of the Borrower and its Subsidiaries for Taxes and
other governmental charges have been determined in accordance with GAAP.

         4.13 ERISA. With respect to each Plan, the Borrower and its
Subsidiaries have fulfilled their obligations under the minimum funding
standards of, and are in compliance in all material respects with, ERISA and
with the Code to the extent applicable to it, and have not incurred any
liability under Title IV of ERISA to the PBGC or a Plan other than a liability
to the PBGC for premiums under Section 4007 of ERISA, except where such
liability could not reasonably be expected to have a Material Adverse Effect. As
of the Effective Date, neither the Borrower nor any of its Subsidiaries has any
contingent liability with respect to any post-retirement benefits under a
welfare plan as defined in ERISA other than liability for continuation coverage
described in Part 6 of Title I of ERISA, except where such liability could not
reasonably be expected to have a Material Adverse Effect.

         4.14 Consents. All consents and approvals of, and filings and
registrations with, and all other actions of, all governmental agencies,
authorities or instrumentalities required to consummate the borrowings
hereunder, on the date of

                                       50
<PAGE>   56

each such borrowing, have been obtained or made and are or will be in full force
and effect.

         4.15 Capitalization. All outstanding shares of Capital Stock of the
Borrower and its Subsidiaries have been duly and validly issued, are fully paid
and nonassessable. None of the Borrower's Subsidiaries has outstanding any
securities convertible into or exchangeable for its Capital Stock or outstanding
any rights to subscribe for or to purchase, or any options for the purchase of,
or any agreement providing for the issuance (contingent or otherwise) of, or any
calls, commitments or claims of any character relating to, its Capital Stock.

         4.16 Ownership of Property. The Borrower and its Subsidiaries have good
title to or a valid leasehold interest in all of its property except to the
extent, in the aggregate, no Material Adverse Effect could reasonably be
expected to result from the failure to have such title or interest, subject to
no Liens except Permitted Encumbrances. The Borrower and its Subsidiaries own or
hold valid licenses to use all the material patents, trademarks, permits,
service marks and trade names, free of any burdensome restrictions, that are
necessary to the operation of the business of the Borrower and its Subsidiaries
as presently conducted, except where the failure to own or hold such licenses
could not reasonably be expected to have a Material Adverse Effect.

         4.17 Compliance with Statutes. The Borrower and its Subsidiaries are in
compliance in all material respects with all applicable statutes, regulations
and orders of, and all applicable restrictions imposed by, all governmental
bodies and have all necessary permits, licenses and other necessary
authorizations with respect to the conduct of their businesses and the ownership
and operation of their properties except where the failure to so comply or hold
such permits, licenses or other authorizations could not reasonably be expected
to have a Material Adverse Effect.

         4.18 Environmental Matters.

                  (a) Borrower and its Subsidiaries have complied with, and on
         the date of each Borrowing will be in compliance with, all applicable
         Environmental Laws and the requirements of any permits issued under
         such Environmental Laws except where failure to so comply could not
         reasonably be expected to have a Material Adverse Effect. To the best
         knowledge of the Borrower, there are no past, existing, or threatened
         Environmental Claims against the Borrower or any of its Subsidiaries or
         any property owned or operated by the Borrower or any of its
         Subsidiaries which could reasonably be expected to have a Material
         Adverse Effect. To the best knowledge of the Borrower, there are no
         conditions or occurrences on or emanating from any property owned or
         operated by the Borrower or any of its Subsidiaries or on any property
         adjoining or in the vicinity

                                       51
<PAGE>   57

         of any such property that could reasonably be expected (i) to form the
         basis of an Environmental Claim against the Borrower or any of its
         Subsidiaries or any property owned or operated by the Borrower or any
         of its Subsidiaries, or (ii) to cause any property owned or operated by
         the Borrower or any of its Subsidiaries to be subject to any material
         restrictions on the ownership, occupancy, the current or intended use
         or transferability of such property by the Borrower or any of its
         Subsidiaries under any applicable Environmental Law except for any such
         condition or occurrence described in clauses (i) or (ii) which could
         not reasonably be expected to have a Material Adverse Effect.

                  (b) To the best knowledge of the Borrower, (i) Hazardous
         Materials have not at any time been generated, used, treated or stored
         on, or transported to or from, any property owned or operated by the
         Borrower or any of its Subsidiaries in a manner that has violated or
         could reasonably be expected to violate any Environmental Law, except
         for such violation which could not reasonably be expected to have a
         Material Adverse Effect, and (ii) Hazardous Materials have not at any
         time been released on or from any property owned or operated by the
         Borrower or any of its Subsidiaries in a matter that has violated or
         could reasonably be expected to violate any Environmental Law, except
         for such violation which could not reasonably be expected to have a
         Material Adverse Effect.

         4.19 Locations. The locations of Borrower and each of its domestic
Subsidiaries are listed in Schedule 4.19.

         4.20 Insurance. Borrower and its domestic Subsidiaries currently
maintain the insurance coverages listed in Schedule 4.20, which meet the
requirements of Section 5.12.

         4.21 Existing Debt and Liens. Borrower and its domestic Subsidiaries
have no Debt or Liens on any of their properties or assets on the Effective Date
(after giving effect to the initial Revolving Loan Borrowings hereunder) other
than as listed on Schedule 4.21.

         4.22 Year 2000.

                  (a) Except to the extent that a failure to do so could not
         reasonably be expected to cause a Material Adverse Change, Borrower (i)
         has begun analyzing the operations of Borrower and its Subsidiaries
         that could be adversely affected by failure to become Year 2000
         compliant (that is, that computer applications, imbedded microchips and
         other systems will be able to perform date-sensitive functions prior to
         and after December 31, 1999); and (ii) is developing a plan for
         becoming Year 2000 compliant in a timely manner. The

                                       52
<PAGE>   58

         Borrower reasonably believes that it will become Year 2000 compliant
         for its operations and those of its Subsidiaries and Affiliates on a
         timely basis except to the extent that a failure to do so could not
         reasonably be expected to cause a Material Adverse Change.

                  (b) Borrower will promptly notify the Banks in the event the
         Borrower determines that any computer application which is material to
         the operations of Borrower, its Subsidiaries, or its Affiliates or any
         of its material vendors or suppliers will not be fully Year 2000
         compliant on a timely basis, except to the extent that such failure
         could not reasonably be expected to cause a Material Adverse Change.

         4.23 Intellectual Property. Borrower and each of its Subsidiaries owns,
or is licensed to use, all trademarks, tradenames, copyrights, technology,
know-how and processes necessary for the conduct of its business as currently
conducted except for those the failure to own or license which could not have a
Material Adverse Effect (the "INTELLECTUAL PROPERTY"). Borrower's Intellectual
Property is set forth on the attached Schedule 4.23. No claim has been asserted
and is pending by any Person challenging or questioning the use of any such
Intellectual Property or the validity or effectiveness of any such Intellectual
Property, nor does the Borrower know of any valid basis for any such claim. The
use of such Intellectual Property by the Borrower and its Subsidiaries does not
infringe on the rights of any Person, except for such claims and infringements
that, in the aggregate, could not have a Material Adverse Effect.

ARTICLE 5. COVENANTS

         Until the Administrative Agent and the Banks receives irrevocable
payment of the Obligations and each Bank's Revolving Loan Commitment has been
terminated, Borrower shall comply with and cause compliance with the following
covenants, unless the Majority Banks shall otherwise consent thereto in writing:

         5.1 Organization. The Borrower shall, and shall cause each Subsidiary
to (a) maintain itself as an entity duly organized, validly existing, and in
good standing under the laws of such Person's respective jurisdiction of
organization and (b) be duly licensed, qualified to do business, and in good
standing in each jurisdiction in which such Person is organized, owns property,
or conducts operations and which requires such licensing or qualification where
failure to be so licensed, qualified, or in good standing as required by this
clause (b) could reasonably be expected to cause a Material Adverse Change;
provided, however, that nothing in this Section 5.1 shall be interpreted to be
violated as a result of a transaction permitted by Section 5.9.

                                       53
<PAGE>   59

         5.2 Reporting. Borrower shall furnish to the Administrative Agent all
of the following:

                  (a) Annual Reports. As soon as available and in any event not
         later than 90 days after the end of each fiscal year of Borrower
         (beginning with the fiscal year ending on September 30, 2000), (i) a
         copy of the annual audit report for such fiscal year for Borrower,
         including therein the consolidated balance sheets of Borrower as of the
         end of such fiscal year and the consolidated statements of income,
         stockholders' equity, and cash flows for Borrower for such fiscal year,
         setting forth the consolidated financial position and results of
         Borrower for such fiscal year and certified, without any qualification
         or limit of the scope of the examination of matters relevant to the
         financial statements, by a nationally recognized certified public
         accounting firm, and (ii) a completed Compliance Certificate duly
         certified by a Responsible Officer of Borrower;

                  (b) Quarterly Reports. As soon as available and in any event
         not later than 60 days after the end of each of the first three fiscal
         quarters of the Borrower of each fiscal year, and in each case in form
         and substance acceptable to the Administrative Agent, beginning with
         the fiscal quarter ending on March 31, 2000, (i) a copy of the
         internally prepared consolidated financial statements of Borrower for
         such fiscal quarter and for the fiscal year to date period ending on
         the last day of such fiscal quarter, including therein the consolidated
         balance sheets of Borrower as of the end of such fiscal quarter and the
         consolidated statements of income, and cash flows for such fiscal
         quarter and for such fiscal year to date period, setting forth the
         consolidated financial position and results of Borrower for such fiscal
         quarter and fiscal year to date period, all in reasonable detail and
         duly certified by a Responsible Officer of Borrower as having been
         prepared in accordance with GAAP, including those applicable to interim
         financial reports which permit normal year end adjustments and do not
         require complete financial notes, and (ii) a completed Compliance
         Certificate duly certified by a Responsible Officer of Borrower;

                  (c) Shareholder Information. As soon as available and in any
         event not later than 30 days after the filing or delivery thereof,
         copies of all financial statements, reports, and proxy statements which
         the Borrower shall have sent to its stockholders generally;

                  (d) Defaults. Promptly, but in any event within two Business
         Days after the discovery thereof, a notice of any facts known to a
         Responsible Officer of Borrower or any Subsidiary of Borrower which
         constitute a Default, together with a statement of a Responsible
         Officer of the Borrower setting forth the details of such facts and the
         actions which the Borrower has taken and proposes to take with respect
         thereto and the Administrative Agent shall,

                                       54
<PAGE>   60

         promptly upon receipt from the Borrower of a notice pursuant to this
         Section 5.2(d), forward a copy of such notice to each Bank;

                  (e) Litigation. Promptly, but in any event within 10 Business
         Days after the commencement thereof, notice of all actions, suits, and
         proceedings before any court or governmental department, commission,
         board, bureau, agency, or instrumentality, domestic or foreign,
         affecting Borrower or any Subsidiary of Borrower which, if determined
         adversely, could reasonably be expected to cause a Material Adverse
         Change;

                  (f) Material Agreement Default. Promptly, but in any event
         within two Business Days after a Responsible Officer obtains knowledge
         thereof, notice of any breach by Borrower or any Subsidiary of Borrower
         of any contract or agreement which breach could reasonably be expected
         to cause a Material Adverse Change;

                  (g) Material Changes. Prompt written notice of any other
         condition or event of which a Responsible Officer of Borrower or any
         Subsidiary of Borrower has knowledge, which condition or event has
         resulted or could reasonably be expected to cause a Material Adverse
         Change; and

                  (h) Other Information. Such other information respecting the
         business operations or property of Borrower or any Subsidiary of
         Borrower, financial or otherwise, as the Administrative Agent or the
         Majority Banks may from time to time reasonably request.

         5.3 Inspection. Borrower shall, and cause each of its Subsidiaries, to
permit the Administrative Agent and the Banks to visit and inspect any of the
properties of such Person, to examine all of such Person's books of account,
records, reports, and other papers, to make copies and extracts therefrom, and
to discuss their respective affairs, finances, and accounts with their
respective officers, and independent public accountants all at such reasonable
times and as often as may be reasonably requested (except as otherwise provided
below), provided that Borrower is given at least three (3) Business Days'
advance notice thereof and reasonable opportunity to be present when independent
public accountants or other third parties are contacted, and provided further
that so long as no Default or Event of Default exists, the Administrative Agent
and the Banks shall not be reimbursed in connection with the exercise of the
foregoing inspection right more often than once in any calendar year (all
additional inspections shall be at the sole cost and expense of the inspecting
Bank).

         5.4 Use of Proceeds. The proceeds of the Revolving Loan Borrowings
shall be used by the Borrower for Acquisitions, acquisitions of foreign entities
and foreign business units, working capital needs, capital expenditures, and for
other lawful

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<PAGE>   61

corporate purposes. The Borrower shall not, directly or indirectly, use any part
of such proceeds for any purpose which violates, or is inconsistent with,
Regulation X of the Board of Governors of the Federal Reserve System.

         5.5 Financial Covenants. The Administrative Agent shall determine
compliance with the following financial covenants based upon the applicable
Schedule of the most recent Compliance Certificate delivered to the
Administrative Agent pursuant to Sections 5.2(a) or 5.2(b).

                  (a) Consolidated Net Worth. Borrower shall not permit its
         Consolidated Net Worth as of the last day of fiscal quarter to be less
         than an amount equal to (i) ninety percent (90%) of Borrower's
         Consolidated Net Worth on September 30, 1999, plus (ii) 50% of the
         cumulative quarterly Consolidated Net Income of the Borrower for each
         fiscal quarter of Borrower ending after September 30, 1999, and which
         the Borrower has positive consolidated net earnings for that fiscal
         quarter; plus (iii) 100% of the net proceeds received by Borrower after
         December 31, 1999, from any sale or issuance of any equity securities
         of, or any other additions to capital by, the Borrower or its
         Subsidiaries. Compliance with this paragraph (a) shall be determined
         based upon Schedule B of the applicable Compliance Certificate.

                  (b) Maximum Consolidated Funded Debt to Total Capitalization
         Ratio. As of the last day of each fiscal quarter of the Borrower,
         Borrower shall not permit its Consolidated Funded Debt to Total
         Capitalization Ratio to be greater than .50 to 1.00. Compliance with
         this paragraph (b) shall be determined based upon Schedule B of the
         applicable Compliance Certificate.

                  (c) Maximum Consolidated Funded Debt to Consolidated EBITDA
         Ratio. As of the last day of each fiscal quarter of the Borrower, the
         Borrower shall not permit its Consolidated Funded Debt to Consolidated
         EBITDA Ratio to be greater than 2.50 to 1.0. Compliance with this
         paragraph (c) shall be determined based upon Schedule B of the
         applicable Compliance Certificate.

                  (d) Minimum Consolidated Fixed Charge Coverage Ratio. As of
         the last day of each fiscal quarter of the Borrower, the Borrower shall
         not permit its Consolidated Fixed Charge Coverage Ratio to be less than
         2.00 to 1.00. Compliance with this paragraph (d) shall be determined
         based upon Schedule B of the applicable Compliance Certificate.

         5.6 Debt. The Borrower shall not, and shall not permit any of its
Subsidiaries to create, assume, incur, suffer to exist, or in any manner become
liable, directly, indirectly, or contingently in respect of, any Debt other than
Permitted Debt.

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<PAGE>   62

         5.7 Liens; Negative Pledges. The Borrower shall not, and shall not
permit any of its Subsidiaries to, create, assume, incur, or suffer to exist any
Lien on any of its real or personal property whether now owned or hereafter
acquired, or assign any right to receive its income, except for Permitted
Encumbrances. Further, Borrower shall not, and shall not permit any of its
Subsidiaries to, agree with any other Person (directly or indirectly), in
connection with Permitted Debt or otherwise, that it will not create, assume,
incur, assume, or suffer to exist any Liens.

         5.8 Other Obligations.

                  (a) Borrower shall not, and shall not permit any of its
         Subsidiaries to, create, incur, assume, or suffer to exist any
         obligations in respect of unfunded vested benefits under any pension
         plan or deferred compensation agreement in an aggregate outstanding
         amount which could reasonably be expected to cause a Material Adverse
         Change.

                  (b) Borrower shall not, and shall not permit any of its
         Subsidiaries to, create, incur, assume, or suffer to exist any
         obligations in respect of Derivatives, other than Derivatives used by
         Borrower and its Subsidiaries in such Person's respective business
         operations in aggregate notional quantities not to exceed the
         reasonably anticipated consumption of such Person of the underlying
         commodity for the relevant period, but no Derivatives which are
         speculative in nature.

         5.9 Corporate Transactions. Borrower shall not, and shall not permit
any of its Subsidiaries to (a) merge, consolidate, or amalgamate with another
Person, or liquidate, wind up, or dissolve itself (or take any action towards
any of the foregoing), (b) convey, sell, lease, assign, transfer, or otherwise
dispose of any of its property, businesses, or other assets outside of the
ordinary course of business, or (c) make any Acquisition except that:

                           (i) Any Subsidiary of Borrower may merge,
                  consolidate, or amalgamate into Borrower or any wholly owned
                  Subsidiary of Borrower, or convey, sell, lease, assign,
                  transfer, or otherwise dispose of any of its assets to
                  Borrower or any wholly-owned Subsidiary of Borrower (and if
                  such disposition transfers all or substantially all of the
                  assets of transferring Subsidiary, such subsidiary may then
                  liquidate, wind up, or dissolve itself); provided that
                  Borrower or the wholly-owned Subsidiary, as applicable, is the
                  surviving or acquiring entity; and

                           (ii) The Borrower or any Subsidiary of the Borrower
                  may make any Acquisition (by purchase or merger) subject to
                  and in accordance with the terms and requirements of Section
                  5.21.

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<PAGE>   63

         5.10 Distributions. Borrower shall not declare or pay Distributions in
any four fiscal quarter period in excess of twenty percent (20%) of Borrower's
Consolidated Net Income for that four fiscal quarter period.

         5.11 Transactions with Affiliates. Borrower shall not, and shall not
permit any of its Subsidiaries to, after the Effective Date, enter into any
transaction directly or indirectly with or for the benefit of an Affiliate
except transactions with an Affiliate for the leasing of property, the rendering
or receipt of services, or the purchase or sale of inventory or other assets in
the ordinary course of business if the monetary or business consideration
arising from such a transaction would be substantially as advantageous to such
Person as the monetary or business consideration which such Person would obtain
in a comparable arm's length transaction.

         5.12 Insurance. Borrower shall, and shall cause each of its
Subsidiaries to, maintain insurance with responsible and reputable insurance
companies or associations reasonably acceptable to the Administrative Agent in
such amounts and covering such risks as are usually carried by companies engaged
in similar businesses and owning similar properties in the same central areas in
which such Persons operate. Without limiting the foregoing, Borrower shall
maintain insurance coverage for itself and each of its Subsidiaries equal to or
better than on an item by item basis for each item, the coverage for itself and
each of its Subsidiaries existing on the date of this Agreement. Borrower shall
deliver to the Administrative Agent certificates evidencing such policies or
copies of such policies at the Administrative Agent's request following a
reasonable period to obtain such certificates taking into account the
jurisdiction where the insurance is maintained.

         5.13 Investments. Borrower shall not, and shall not permit any of its
Subsidiaries to, make or hold any direct or indirect investment in any Person,
including capital contributions to the Person, investments in the debt or equity
securities of the Person, and loans, guaranties, trade credit, or other
extensions of credit to the Person, except for Permitted Investments.

         5.14 Lines of Business. Borrower shall not, and shall not permit any of
its Subsidiaries to, engage in any type of business which is not a Permitted
Line of Business.

         5.15 Compliance with Laws. Borrower shall, and shall cause each of its
Subsidiaries to, comply with all federal, state, and local laws and regulations
which are applicable to the operations and property of such Persons, in each
case, where the failure to comply could reasonably be expected to cause a
Material Adverse Change.

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<PAGE>   64

         5.16 Environmental Compliance. Borrower shall, and shall cause each of
its Subsidiaries to, comply with all Environmental Laws and obtain and comply
with all related permits necessary for the ownership and operation of any such
Person's properties, in each case, where the failure to comply could reasonably
be expected to cause a Material Adverse Change. Borrower shall, and shall cause
each of its Subsidiaries to, promptly disclose to the Administrative Agent any
notice to or investigation of such Persons for any violation or alleged
violation of any Environmental Law in connection with any such Person's
presently or previously owned properties which represent liabilities which could
reasonably be expected to cause a Material Adverse Change. Borrower shall not,
and shall not permit any of its Subsidiaries, to create, handle, transport, use,
or dispose of any Hazardous Materials on or about any such Person's properties;
release any Hazardous Materials into the environment in connection with any such
Person's operations or contaminate any properties with Hazardous Materials; or
own properties contaminated by any Hazardous Materials, in each case in any
manner that could reasonably be expected to violate Environmental Laws and cause
a Material Adverse Change.

         5.17 ERISA Compliance. Borrower shall, and shall cause each of its
Subsidiaries, to (a) comply in all material respects with all applicable
provisions of ERISA and prevent the occurrence of any Reportable Event or
Prohibited Transaction with respect to, or the termination of, any of their
respective Plans, in each case, where the failure to do so could reasonably be
expected to cause a Material Adverse Change and (b) not create or participate in
any employee pension benefit plan covered by Title IV of ERISA or any
multiemployer plan under Section 4001(a)(3) of ERISA, to the extent such
participation could reasonably be expected to cause a Material Adverse Change.

         5.18 Payment of Certain Claims. Borrower shall, and shall cause each of
its Subsidiaries, to pay and discharge, before the same shall become delinquent,
(a) all taxes, assessments, levies, and like charges imposed upon any such
Person or upon any such Person's income, profits, or property by authorities
having competent jurisdiction prior to the date on which penalties attach
thereto except for tax payments being contested in good faith for which adequate
reserves have been established and reported in accordance with GAAP which could
not reasonably be expected to cause a Material Adverse Change and (b) all trade
payables and current operating liabilities, unless the same are less than 90
days past due or are being contested in good faith, have adequate reserves
established and reported in accordance with GAAP, and could not reasonably be
expected to cause a Material Adverse Change.

         5.19 Newly Formed Subsidiaries. Upon the formation of any new domestic
Subsidiary, Borrower shall and shall cause such domestic Subsidiary to promptly,
but in any event within 30 days after the formation of such new domestic
Subsidiary, execute and deliver (or caused to be executed and delivered) to the
Administrative

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<PAGE>   65

Agent such guaranties, amendment agreements, consents, and other documents and
agreements as the Administrative Agent requests so that such domestic Subsidiary
guarantees the Credit Obligations on the same terms as the existing domestic
Subsidiaries of Borrower (including the execution and delivery of a Joinder
Agreement in substantially the form of Exhibit G for the purpose of joining such
domestic Subsidiary as a party to the Guaranty, or the execution of such new
guaranties and consents as the Administrative Agent determines are necessary to
have the same effect in different jurisdictions. In connection therewith and
within 30 days after the formation of such new domestic Subsidiary, Borrower
shall provide Charter Documents and if requested by the Administrative Agent,
opinion letters reasonably satisfactory to the Administrative Agent reflecting
the corporate status of such new domestic Subsidiary of Borrower and the
enforceability of such agreements.

         5.20 Offices and Files. Borrower's books, records and files shall at
all times be maintained at Borrower's principal office. Borrower shall provide
Administrative Agent with written notice of any change in the location of
Borrower's principal office at least 60 days prior to any such change.

         5.21 Acquisitions.

                  (a) Within ten (10) days following the Acquisition Date of any
         Acquisition by Borrower or any of its domestic Subsidiaries of a new
         domestic Subsidiary, Borrower shall deliver to the Administrative
         Agent:

                           (i) if the Acquisition is a new domestic Subsidiary
                  of Borrower, a Joinder Agreement in the form of Exhibit G
                  executed and delivered by that Person (and all domestic
                  Subsidiaries of such Person which remain in existence after
                  the Acquisition), together with all opinions, resolutions, and
                  certificates required by the Administrative Agent to evidence
                  that the delivery of the Joinder Agreement is duly authorized;
                  and

                           (ii) the Charter Documents of the business acquired
                  in the Acquisition and each domestic Subsidiary thereof, all
                  assumed name certificates used by the Acquisition and such
                  domestic Subsidiaries and evidence that the Acquisition and
                  such domestic Subsidiaries have not dissolved and are in good
                  standing and have authority to transact business in all
                  applicable jurisdictions and are insured in the manner
                  required by this Agreement.

                  (b) Within sixty (60) days following the Acquisition Date
         relating to an Acquisition of a new domestic Subsidiary; Borrower shall
         deliver to the Administrative Agent evidence that, except for Permitted
         Encumbrances, all Liens on the assets of the Acquisition and its
         Subsidiaries (and, if the business

                                       60
<PAGE>   66

         acquired in the Acquisition or its domestic Subsidiaries is a Person
         whose outstanding Capital Stock or other evidence of ownership interest
         was acquired, on that Capital Stock or such other ownership interest)
         have been released or otherwise terminated.

ARTICLE 6. DEFAULT AND REMEDIES.

         6.1 Events of Default. Each of the following shall be an "EVENT OF
DEFAULT" for the purposes of this Agreement and for each of the Credit
Documents:

                  (a) Payment Failure. The Borrower (i) fails to pay when due
         any principal amounts (including, without limitation, reimbursements
         due under a Letter of Credit) due under this Agreement or any other
         Credit Document or (ii) fails to pay when due any interest, fees,
         reimbursements, indemnifications, or other amounts due under this
         Agreement or any other Credit Document within five Business Days from
         the date it is due;

                  (b) False Representation. Any written representation or
         warranty made by any Credit Party or any Responsible Officer thereof in
         this Agreement or in any other Credit Document proves to have been
         false or erroneous in any material respect at the time it was made or
         deemed made;

                  (c) Breach of Covenant. (i) Any breach by the Borrower of any
         of the covenants contained in Sections 5.2, 5.3, 5.4, 5.5, 5.6, 5.7,
         5.8, 5.9, 5.10, 5.13, 5.19, or 5.21, or (ii) any breach by Borrower or
         any of its Subsidiaries of any other covenants contained in this
         Agreement, or any other Credit Document and such breach is not cured
         within 30 days following the earlier of knowledge of such breach by a
         Responsible Officer of such Person or the receipt of written notice
         thereof from the Administrative Agent made at the request of any Bank;

                  (d) Guaranty.

                           (i) The Subsidiary Guaranty shall at any time and for
                  any reason cease to be in full force and effect with respect
                  to any Guarantor (except as permitted under Section 5.9 or
                  Section 2.13) or shall be contested by any Guarantor, or any
                  Guarantor shall deny it has any further liability or
                  obligation thereunder, or

                           (ii) any breach by any Guarantor of any of the
                  covenants contained in this Agreement or in the Subsidiary
                  Guaranty;

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<PAGE>   67

                  (e) Material Debt Default.

                           (i) Any principal, interest, fees, or other amounts
                  due on any Debt of Borrower or any of its Subsidiaries (other
                  than the Credit Obligations) is not paid when due, whether by
                  scheduled maturity, required prepayment, acceleration, demand,
                  or otherwise, and such failure is not cured within the
                  applicable grace period, if any, and the aggregate amount of
                  all Debt of such Persons so in default exceeds $1,000,000;

                           (ii) any other event shall occur or condition shall
                  exist under any agreement or instrument relating to any Debt
                  of any such Person (other than the Credit Obligations) the
                  effect of which is to accelerate or to permit the acceleration
                  of the maturity of any such Debt, whether or not any such Debt
                  is actually accelerated, and such event or condition shall not
                  be cured within the applicable grace period, if any, and the
                  aggregate amount of all Debt of such Persons so in default
                  exceeds $1,000,000; or

                           (iii) any Debt of any such Person shall be declared
                  to be due and payable or required to be prepaid (other than by
                  a regularly scheduled prepayment) prior to the stated maturity
                  thereof, and the aggregate amount of all Debt of such Persons
                  so accelerated exceeds $1,000,000;

                  (f) Material Agreement Default. There shall occur any breach
         by Borrower or any of its Subsidiaries of any contract or agreement
         which breach could reasonably be expected to cause a Material Adverse
         Change and such breach is not cured within the applicable grace period,
         if any;

                  (g) Bankruptcy and Insolvency. (i) There shall have been filed
         against any Borrower or any of its Subsidiaries or any such Person's
         properties, without such Person's consent, any petition or other
         request for relief seeking an arrangement, receivership,
         reorganization, liquidation, or similar relief under bankruptcy or
         other laws for the relief of debtors, and such petition or other
         request is not dismissed within sixty (60) days or any order for any
         relief is granted, or (ii) any such Person consents to or files any
         petition or other request for relief of the type described in clause
         (i) above seeking relief from creditors, makes any assignment for the
         benefit of creditors or other arrangement with creditors, or admits in
         writing such Person's inability to pay such Person's debts as they
         become due (the occurrence of any Event of Default under clause (i) or
         (ii) of this paragraph being a "BANKRUPTCY EVENT OF DEFAULT");

                                       62
<PAGE>   68

                  (h) Receiver. A custodian, receiver, trustee, examiner,
         liquidator or similar official is appointed for the Borrower or any of
         its Subsidiaries or any substantial part of its property, or a
         proceeding described in Section 6.1(h) is instituted against the
         Borrower or any of its Subsidiaries;

                  (i) ERISA. Borrower or any of its Subsidiaries fails to pay
         when due an amount aggregating in excess of $1,000,000 that it is
         liable to pay to the PBGC or to a Plan under Title IV of ERISA; or a
         notice of intent to terminate a Plan having unfunded vested liabilities
         of the Borrower or any of its Subsidiaries in excess of $1,000,000 (a
         "MATERIAL PLAN") is filed under Title IV of ERISA; or the PBGC
         institutes proceedings under Title IV of ERISA to terminate or to cause
         a trustee to be appointed to administer any Material Plan; or a
         proceeding is instituted by a fiduciary of any Material Plan against
         the Borrower or any of its Subsidiaries to collect any liability under
         Section 515 or 4219(c)(5) of ERISA and such proceeding is not dismissed
         within thirty (30) days thereafter; or a condition exists by reason of
         which the PBGC would be entitled to obtain a decree adjudicating that
         any Material Plan must be terminated, and such events individually or
         collectively with any other such events could reasonably be expected to
         cause a Material Adverse Change;

                  (j) Challenges. The Borrower, any Guarantor, any Person acting
         on behalf of the Borrower or any Guarantor, or any governmental,
         judicial or arbitral authority challenges the validity of any Credit
         Document or the Borrower's or any Guarantor's obligations thereunder,
         or any Credit Document ceases to be in full force and effect in all
         material respects or ceases to give to the Administrative Agent and the
         Banks the rights and powers purported to be granted in its favor
         thereby in all material respects other than for any reason solely
         caused by or within the sole control of the Administrative Agent and/or
         any Bank;

                  (k) Adverse Judgment. The aggregate outstanding amount of
         final, non-appealable judgments against Borrower or any of its
         Subsidiaries not discharged or stayed pending appeal or other court
         action within 45 days following entry is greater than $1,000,000; or

                  (l) Change of Control. There shall occur any Change of Control
         (except as a result of an Acquisition approved by the Majority Banks
         under the terms of this Agreement and which otherwise satisfies the
         Acquisition Criteria).

         6.2 Termination of Revolving Loan Commitments. Upon the occurrence of
any Bankruptcy Event of Default, all of the commitments of the Administrative
Agent and the Banks hereunder shall terminate. During the existence of any Event
of Default other than a Bankruptcy Event of Default, the Administrative Agent
shall at the request

                                       63
<PAGE>   69

of the Majority Banks declare by written notice to the Borrower all of the
commitments of the Administrative Agent and the Banks hereunder terminated,
whereupon the same shall immediately terminate.

         6.3 Acceleration of Credit Obligations. Upon the occurrence of any
Bankruptcy Event of Default, the aggregate outstanding principal amount of all
loans made hereunder, all accrued interest thereon, and all other Credit
Obligations shall immediately and automatically become due and payable. During
the existence of any Event of Default other than a Bankruptcy Event of Default,
the Administrative Agent shall at the request of the Majority Banks declare by
written notice to the Borrower the aggregate outstanding principal amount of all
loans made hereunder, all accrued interest thereon, and all other Credit
Obligations to be immediately due and payable, whereupon the same shall
immediately become due and payable. In connection with the foregoing, except for
the notice provided for above in this Article 6, the Borrower waives notice of
any Default or Event of Default, grace, notice of intent to accelerate, notice
of acceleration, presentment, demand, notice of nonpayment, protest, and all
other notices.

         6.4 Cash Collateralization of Letters of Credit. Upon the occurrence of
any Bankruptcy Event of Default, the Borrower shall pay to the Administrative
Agent an amount equal to the Letter of Credit Exposure to be held in the Letter
of Credit Collateral Account for disposition in accordance with Section 2.2(g).
During the existence of any Event of Default other than a Bankruptcy Event of
Default, the Administrative Agent shall at the request of the Majority Banks
require by written notice to the Borrower that the Borrower pay to the
Administrative Agent an amount equal to the Letter of Credit Exposure to be held
in the Letter of Credit Collateral Account for disposition in accordance with
Section 2.2(g), whereupon the Borrower shall pay to the Administrative Agent
such amount for such purpose.

         6.5 Default Interest. If any Event of Default exists based upon a
default in the payment of any amounts owing hereunder, the Administrative Agent
shall at the request of the Majority Banks declare by written notice to the
Borrower that the Credit Obligations specified in such notice shall bear
interest beginning on the date specified in such notice until paid in full at
the applicable Default Rate for such Credit Obligations, whereupon the Borrower
shall pay such interest to the Administrative Agent for the benefit of the
Administrative Agent and the Banks, as applicable, upon demand by the
Administrative Agent (except such demand shall be deemed to have been made upon
the occurrence of an Event of Default under Section 6.1(h). If any other Event
of Default exists, the Administrative Agent shall at the request of the Majority
Banks declare by written notice to the Borrower that, unless such Event of
Default is cured to the satisfaction of the Administrative Agent and the
Majority Banks on or before the 30th day following the occurrence of such Event
of Default, the Credit Obligations specified in such notice shall bear interest
beginning on such 30th

                                       64
<PAGE>   70

day until paid in full at the applicable Default Rate for such Credit
Obligations, whereupon the Borrower shall, if such Event of Default is not cured
by such date, pay such interest to the Administrative Agent for the benefit of
the Administrative Agent and the Banks, as applicable, upon demand by the
Administrative Agent after such date.

         6.6 Right of Setoff. During the existence of an Event of Default, the
Administrative Agent and each Bank is hereby authorized at any time, to the
fullest extent permitted by law, to set off and apply any indebtedness owed by
the Administrative Agent or such Bank to the Borrower against any and all of the
obligations of the Borrower under this Agreement and the Credit Documents,
irrespective of whether or not the Administrative Agent or such Bank shall have
made any demand under this Agreement or the Credit Documents. The Administrative
Agent and each Bank, as the case may be, agrees promptly to notify the Borrower
after any such setoff and application made by such party provided that the
failure to give such notice shall not affect the validity of such setoff and
application.

         6.7 Actions Under Credit Documents. Following an Event of Default, the
Administrative Agent shall at the request of the Majority Banks take any and all
actions permitted under the other Credit Documents, including the Guaranty and
the Security Documents.

         6.8 Remedies Cumulative. No right, power, or remedy conferred to the
Administrative Agent or the Banks in this Agreement and the Credit Documents, or
now or hereafter existing at law, in equity, by statute, or otherwise, shall be
exclusive, and each such right, power, or remedy shall to the full extent
permitted by law be cumulative and in addition to every other such right, power,
or remedy. No course of dealing and no delay in exercising any right, power, or
remedy conferred to the Administrative Agent or the Banks in this Agreement and
the Credit Documents, or now or hereafter existing at law, in equity, by statute
or otherwise, shall operate as a waiver of or otherwise prejudice any such
right, power, or remedy.

         6.9 Application of Payments. Prior to the Revolving Loan Maturity Date
or any acceleration of the Credit Obligations, all payments made hereunder shall
be applied to the Credit Obligations as directed by the Borrower, subject to the
rules regarding the application of payments to certain Credit Obligations
provided for hereunder and in the Credit Documents. Following the Revolving Loan
Maturity Date or any acceleration of the Credit Obligations, all payments and
collections shall be applied to the Credit Obligations in the following order:

         First, to the payment of the reasonable costs, expenses, reimbursements
         (other than reimbursement obligations with respect to draws under

                                       65
<PAGE>   71

         Letters of Credit), and indemnifications of the Administrative Agent
         that are due and payable under the Credit Documents;

         Then, ratably to the payment of the reasonable costs, expenses,
         reimbursements (other than reimbursement obligations with respect to
         draws under Letters of Credit), and indemnifications of the Banks that
         are due and payable under the Credit Documents;

         Then, ratably to the payment of all outstanding principal and accrued
         but unpaid interest and reimbursement obligations for draws under
         Letters of Credit due and payable under the Credit Documents;

         Then, ratably to the payment of all accrued but unpaid interest and
         fees and obligations under Interest Hedge Agreements due and payable
         under the Credit Documents;

         Then, ratably to the payment of any other amounts due and owing with
         respect to the Credit Obligations; and

         Finally, any surplus held by the Administrative Agent and remaining
         after payment in full of all the Credit Obligations and reserve for
         Credit Obligations not yet due and payable shall be promptly paid over
         to the Borrower or to whomever may be lawfully entitled to receive such
         surplus. All applications shall be distributed in accordance with
         Section 2.9(a).

ARTICLE 7.  THE ADMINISTRATIVE AGENT AND THE ISSUING BANK

         7.1 Authorization and Action. Each Bank hereby appoints and authorizes
the Administrative Agent to take such action as agent on its behalf and to
exercise such powers under this Agreement as are delegated to the Administrative
Agent by the terms hereof and of the other Credit Documents, together with such
powers as are reasonably incidental thereto. Statements under the Credit
Documents that the Administrative Agent may take certain actions, without
further qualification, mean that the Administrative Agent may take such actions
with or without the consent of the Banks or the Majority Banks, but where the
Credit Documents expressly require the determination of the Banks or the
Majority Banks, the Administrative Agent shall not take any such action without
the prior written consent thereof. As to any matters not expressly provided for
by this Agreement or any other Credit Document (including, without limitation,
enforcement or collection of the Revolving Loan Notes), the Administrative Agent
shall not be required to exercise any discretion or take any action, but shall
be required to act or to refrain from acting (and shall be fully protected in so
acting or refraining from acting) upon the written instructions of the Majority

                                       66
<PAGE>   72

Banks, and such instructions shall be binding upon all Banks and all holders of
Revolving Loan Notes; provided, however, that the Administrative Agent shall not
be required to take any action which exposes the Administrative Agent to
personal liability or which is contrary to this Agreement, any other Credit
Document, or applicable law.

         7.2 Reliance, Etc. Neither the Administrative Agent, the Issuing Bank,
nor any of their respective Related Parties (for the purposes of this Section
7.2, collectively, the "INDEMNIFIED PARTIES") shall be liable for any action
taken or omitted to be taken by any Indemnified Party under or in connection
with this Agreement or the other Credit Documents, INCLUDING ANY INDEMNIFIED
PARTY'S OWN NEGLIGENCE, except for any Indemnified Party's gross negligence or
willful misconduct. Without limitation of the generality of the foregoing, the
Administrative Agent and the Issuing Bank: (a) may treat the payee of any
Revolving Loan Note as the holder thereof until the Administrative Agent
receives written notice of the assignment or transfer thereof signed by such
payee and in form satisfactory to the Administrative Agent; (b) may consult with
legal counsel, independent public accountants, and other experts selected by it
and shall not be liable for any action taken or omitted to be taken in good
faith by it in accordance with the advice of such counsel, accountants, or
experts; (c) makes no warranty or representation to any Bank and shall not be
responsible to any Bank for any statements, warranties, or representations made
in or in connection with this Agreement or the other Credit Documents; (d) shall
not have any duty to ascertain or to inquire as to the performance or observance
of any of the terms, covenants, or conditions of this Agreement or any other
Credit Document on the part of the Credit Parties or to inspect the property
(including the books and records) of the Credit Parties; (e) shall not be
responsible to any Bank for the due execution, legality, validity,
enforceability, genuineness, sufficiency, or value of this Agreement or any
other Credit Document; and (f) shall incur no liability under or in respect of
this Agreement or any other Credit Document by acting upon any notice, consent,
certificate, or other instrument or writing (which may be by telecopier or
telex) reasonably believed by it to be genuine and signed or sent by the proper
party or parties.

         7.3 Affiliates. With respect to its Revolving Loan Commitments, the
Revolving Loan Advances made by it, its interests in the Letters of Credit, and
the Revolving Loan Notes issued to it, the Administrative Agent and the Issuing
Bank shall have the same rights and powers under this Agreement as any other
Bank and may exercise the same as though it were not the Administrative Agent.
The term "Bank" or "Banks" shall, unless otherwise expressly indicated, include
the Administrative Agent and the Issuing Bank in their individual capacity. The
Administrative Agent, the Issuing Bank, and their respective Affiliates may
accept deposits from, lend money to, act as trustee under indentures of, and
generally engage in any kind of business with, any Credit Party, and any Person
who may do business with or own securities of any Credit Party, all as if the
Administrative Agent were not an agent hereunder and the

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Issuing Bank were not the issuer of Letters of Credit hereunder and without any
duty to account therefor to the Banks.

         7.4 Bank Credit Decision. Each Bank acknowledges that it has,
independently and without reliance upon the Administrative Agent or any other
Bank and based on the Preliminary Financial Statements and such other documents
and information as it has deemed appropriate, made its own credit analysis and
decision to enter into this Agreement. Each Bank also acknowledges that it
shall, independently and without reliance upon the Administrative Agent or any
other Bank and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or
not taking action under this Agreement.

         7.5 Expenses. To the extent not paid by the Borrower, each Bank
severally agrees to pay to the Administrative Agent and the Issuing Bank on
demand such Bank's ratable share of the following: (a) all reasonable
out-of-pocket costs and expenses of the Administrative Agent and the Issuing
Bank in connection with the preparation, execution, delivery, administration,
modification, and amendment of this Agreement and the other Credit Documents,
including the reasonable fees and expenses of outside counsel for the
Administrative Agent and the Issuing Bank with respect to advising the
Administrative Agent and the Issuing Bank as to their respective rights and
responsibilities under this Agreement and the Credit Documents, and (b) all
out-of-pocket costs and expenses of the Administrative Agent and the Issuing
Bank in connection with the preservation or enforcement of the rights of the
Administrative Agent, the Issuing Bank, and the Banks under this Agreement and
the other Credit Documents, whether through negotiations, legal proceedings, or
otherwise, including fees and expenses of counsel for the Administrative Agent
and the Issuing Bank. The provisions of this Section 7.5 shall survive the
repayment and termination of the credit provided for under this Agreement and
any purported termination of this Agreement which does not expressly refer to
this Section 7.5.

         7.6 Indemnification. To the extent not reimbursed by the Borrower, each
Bank severally agrees to protect, defend, indemnify, and hold harmless the
Administrative Agent, the Syndication Agent, the Documentation Agent, the Swing
Line Lender, the Issuing Bank, and each of their respective Related Parties (for
the purposes of this Section 7.6, collectively, the "INDEMNIFIED PARTIES"), from
and against all demands, claims, actions, suits, damages, judgments, fines,
penalties, liabilities, and out-of-pocket costs and expenses, including
reasonable costs of attorneys and related costs of experts such as accountants
(collectively, the "INDEMNIFIED LIABILITIES"), actually incurred by any
Indemnified Party which are related to any litigation or proceeding relating to
this Agreement, the Credit Documents, or the transactions contemplated
thereunder, INCLUDING ANY INDEMNIFIED LIABILITIES CAUSED BY ANY INDEMNIFIED
PARTY'S OWN NEGLIGENCE, but not Indemnified Liabilities which are a result of
any Indemnified Party's gross negligence or willful

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misconduct. The provisions of this Section 7.6 shall survive the repayment and
termination of the credit provided for under this Agreement and any purported
termination of this Agreement which does not expressly refer to this Section
7.6.

         7.7 Successor Administrative Agent and Issuing Bank. The Administrative
Agent or the Issuing Bank may resign at any time by giving written notice
thereof to the Banks and the Borrower and may be removed at any time with or
without cause by the Majority Banks upon receipt of written notice from the
Majority Banks to such effect. Upon receipt of notice of any such resignation or
removal, the Majority Banks shall have the right to appoint a successor
Administrative Agent or Issuing Bank with the consent of the Borrower, which
consent shall not be unreasonably withheld. If no successor Administrative Agent
or Issuing Bank shall have been so appointed by the Majority Banks with the
consent of the Borrower, and shall have accepted such appointment, within 30
days after the retiring Administrative Agent's or Issuing Bank's giving of
notice of resignation or the Majority Banks' removal of the retiring
Administrative Agent or Issuing Bank, then the retiring Administrative Agent or
Issuing Bank may, on behalf of the Banks and the Borrower, appoint a successor
Administrative Agent or Issuing Bank, which shall be, in the case of a successor
agent, a commercial bank organized under the laws of the United States of
America or of any State thereof and having a combined capital and surplus of at
least $500,000,000 and, in the case of the Issuing Bank, a Bank. Upon the
acceptance of any appointment as Administrative Agent or Issuing Bank by a
successor Administrative Agent or Issuing Bank, such successor Administrative
Agent or Issuing Bank shall thereupon succeed to and become vested with all the
rights, powers, privileges, and duties of the retiring Administrative Agent or
Issuing Bank, and the retiring Administrative Agent or Issuing Bank shall be
discharged from any duties and obligations under this Agreement and the other
Credit Documents after such acceptance, except that the retiring Issuing Bank
shall remain the Issuing Bank with respect to any Letters of Credit outstanding
on the effective date of its resignation or removal and the provisions affecting
the Issuing Bank with respect to such Letters of Credit shall inure to the
benefit and remain the obligation of, as applicable, of the retiring Issuing
Bank until the termination of all such Letters of Credit. After any
Administrative Agent's or Issuing Bank's resignation or removal hereunder as
Administrative Agent or Issuing Bank, the provisions of this Article 7 shall
inure to such Person's benefit and remain the obligation of, as applicable, as
to any actions taken or omitted to be taken by such Person while such Person was
Administrative Agent or Issuing Bank under this Agreement and the other Credit
Documents.

ARTICLE 8. MISCELLANEOUS

         8.1 Expenses. The Borrower shall pay on demand of the applicable party
specified herein (a) all reasonable out-of-pocket costs and expenses of the
Administrative Agent and the Issuing Bank in connection with the preparation,

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execution, delivery, modification, and amendment of this Agreement and the other
Credit Documents, including the reasonable fees and expenses of outside counsel
for the Administrative Agent and the Issuing Bank, and (b) all reasonable
out-of-pocket costs and expenses of the Administrative Agent, the Issuing Bank,
and each Bank in connection with the preservation or enforcement of their
respective rights under this Agreement and the other Credit Documents, whether
through negotiations, legal proceedings, or otherwise, including reasonable fees
and expenses of counsel for the Administrative Agent, the Issuing Bank and each
Bank. The provisions of this Section 8.1 shall survive 365 days from the
repayment and termination of the credit provided for under this Agreement.

         8.2 Indemnification. The Borrower agrees to protect, defend, indemnify,
and hold harmless the Administrative Agent, the Issuing Bank, each Bank, and
each of their respective Related Parties (for the purposes of this Section 8.2,
collectively, the "INDEMNIFIED PARTIES"), from and against all demands, claims,
actions, suits, damages, judgments, fines, penalties, liabilities, and
reasonable out-of-pocket costs and expenses, including reasonable costs of
attorneys and related costs of experts such as accountants (collectively, the
"INDEMNIFIED LIABILITIES"), actually incurred by any Indemnified Party which are
related to any litigation or proceeding relating to this Agreement, the Credit
Documents, or the transactions contemplated thereunder, INCLUDING ANY
INDEMNIFIED LIABILITIES CAUSED BY ANY INDEMNIFIED PARTY'S OWN NEGLIGENCE, but
not Indemnified Liabilities which are a result of any Indemnified Party's gross
negligence or willful misconduct. The provisions of this Section 8.2 shall
survive 365 days from the repayment and termination of the credit provided for
under this Agreement.

         8.3 Modifications, Waivers, and Consents. No modification or waiver of
any provision of this Agreement or the Revolving Loan Notes nor any consent
required under this Agreement or the Revolving Loan Notes shall be effective
unless the same shall be in writing and signed by the Administrative Agent and
Majority Banks and the Borrower, and then such modification, waiver, or consent
shall be effective only in the specific instance and for the specific purpose
for which given; provided, however, that no modification, waiver, or consent
shall, unless in writing and signed by the Administrative Agent, all the Banks,
and the Borrower do any of the following: (a) waive any of the conditions
specified in Section 3.1 or 3.2, (b) increase the Revolving Loan Commitments of
the Banks, (c) forgive or reduce the amount or rate of any principal, interest,
or fees payable under the Credit Documents, or postpone or extend the time for
payment thereof (including, without limitation, extend the Revolving Loan
Maturity Date), (d) change to the definition of Permitted Debt, (e) release any
Guaranty or any material collateral securing the Credit Obligations (except as
otherwise permitted or required herein), or (f) change the percentage of Banks
required to take any action under this Agreement, the Revolving Loan Notes, or
the Security Documents, including any amendment of the definition of "MAJORITY
BANKS" or this

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Section 8.3. No modification, waiver, or consent shall, unless in writing and
signed by the Administrative Agent or the Issuing Bank affect the rights or
obligations of the Administrative Agent or the Issuing Bank, as the case may be,
under the Credit Documents. The Administrative Agent shall not modify or waive
or grant any consent under any other Credit Document if such action would be
prohibited under this Section 8.3 with respect to the Credit Agreement or the
Revolving Loan Notes.

         8.4 Survival of Agreements. All representations, warranties, and
covenants of the Borrower in this Agreement and the Credit Documents shall
survive the execution of this Agreement and the Credit Documents and any other
document or agreement.

         8.5 Assignment and Participation. This Agreement and the Credit
Documents shall bind and inure to the benefit of the Borrower and their
respective successors and assigns and the Administrative Agent and the Banks and
their respective successors and assigns. The Borrower may not assign its rights
or delegate its duties under this Agreement or any Credit Document.

                  (a) Assignments. Any Bank may assign to one or more banks or
         other entities all or any portion of its rights and obligations under
         this Agreement (including, without limitation, all or a portion of its
         Revolving Loan Commitments, the Revolving Loan Advances owing to it,
         the Revolving Loan Notes held by it, and the participation interest in
         the Letters of Credit owned by it); provided, however, that (i) each
         such assignment shall be of a constant, and not a varying, percentage
         of all of such Bank's rights and obligations under this Agreement, (ii)
         assignments of Revolving Loan Commitments shall be made in minimum
         amounts of $5,000,000 and be made in integral multiples of $1,000,000
         and the assigning Bank, if it retains any Revolving Loan Commitments,
         shall maintain at least $5,000,000 in Revolving Loan Commitments, (iii)
         each such assignment shall be to an Eligible Assignee, (iv) the parties
         to each such assignment shall execute and deliver to the Administrative
         Agent, for its acceptance and recording in the Register, an Assignment
         and Acceptance, together with the Revolving Loan Notes subject to such
         assignment, and (v) each Eligible Assignee (other than the Eligible
         Assignee of the Administrative Agent) shall pay to the Administrative
         Agent a $5,000.00 administrative fee. Upon such execution, delivery,
         acceptance and recording, from and after the effective date specified
         in each Assignment and Acceptance, which effective date shall be at
         least three Business Days after the execution thereof, (A) the assignee
         thereunder shall be a party hereto for all purposes and, to the extent
         that rights and obligations hereunder have been assigned to it pursuant
         to such Assignment and Acceptance, have the rights and obligations of a
         Bank hereunder and (B) such Bank thereunder shall, to the extent that
         rights and obligations hereunder have been assigned by it pursuant

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<PAGE>   77

         to such Assignment and Acceptance, relinquish its rights and be
         released from its obligations under this Agreement (and, in the case of
         an Assignment and Acceptance covering all or the remaining portion of
         such Bank's rights and obligations under this Agreement, such Bank
         shall cease to be a party hereto).

                  (b) Terms of Assignments. By executing and delivering an
         Assignment and Acceptance, the Bank thereunder and the assignee
         thereunder confirm to and agree with each other and the other parties
         hereto as follows: (i) other than as provided in such Assignment and
         Acceptance, such Bank makes no representation or warranty and assumes
         no responsibility with respect to any statements, warranties or
         representations made in or in connection with this Agreement or the
         execution, legality, validity, enforceability, genuineness, sufficiency
         of value of this Agreement or any other instrument or document
         furnished pursuant hereto; (ii) such Bank makes no representation or
         warranty and assumes no responsibility with respect to the financial
         condition of any Credit Party or the performance or observance by any
         Credit Party of any of its obligations under this Agreement or any
         other instrument or document furnished pursuant hereto; (iii) such
         assignee confirms that it has received a copy of this Agreement and
         such other documents and information as it has deemed appropriate to
         make its own credit analysis and decision to enter into such Assignment
         and Acceptance; (iv) such assignee shall independently and without
         reliance upon the Administrative Agent, such Bank or any other Bank and
         based on such documents and information as it shall deem appropriate at
         the time, continue to make its own credit decisions in taking or not
         taking action under this Agreement; (v) such assignee appoints and
         authorizes the Administrative Agent to take such action as agent on its
         behalf and to exercise such powers under this Agreement as are
         delegated to the Administrative Agent by the terms hereof, together
         with such powers as are reasonably incidental thereto; and (vi) such
         assignee agrees that it shall perform in accordance with their terms
         all of the obligations which by the terms of this Agreement are
         required to be performed by it as a Bank.

                  (c) The Register. The Administrative Agent shall maintain at
         its address referred to in Section 8.11 a copy of each Assignment and
         Acceptance delivered to and accepted by it and a register for the
         recordation of the names and addresses of the Banks and the Revolving
         Loan Commitments of each Bank from time to time (the "REGISTER"). The
         entries in the Register shall be conclusive and binding for all
         purposes, absent manifest error, and the Borrower, the Administrative
         Agent, the Issuing Bank, and the Banks may treat each Person whose name
         is recorded in the Register as a Bank hereunder for all purposes of
         this Agreement. The Register shall be available for inspection by the
         Borrower or any Bank at any reasonable time and from time to time upon
         reasonable prior notice.

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<PAGE>   78

                  (d) Procedures. Upon its receipt of an Assignment and
         Acceptance executed by a Bank and an Eligible Assignee, together with
         the Revolving Loan Notes subject to such assignment, the Administrative
         Agent shall, if such Assignment and Acceptance has been completed in
         the appropriate form, (i) accept such Assignment and Acceptance, (ii)
         record the information contained therein in the Register and (iii) give
         prompt notice thereof to the Borrower. Within five Business Days after
         its receipt of such notice, the Borrower shall execute and deliver to
         the Administrative Agent in exchange for the surrendered Revolving Loan
         Notes, marked "paid", a new Revolving Loan Note to the order of such
         Eligible Assignee in an amount equal to the Revolving Loan Commitment
         assumed by it pursuant to such Assignment and Acceptance and, if such
         Bank has retained any Revolving Loan Commitment hereunder, a new
         Revolving Loan Note to the order of such Bank in an amount equal to the
         Revolving Loan Commitment retained by it hereunder. Such new Revolving
         Loan Notes shall be dated the effective date of such Assignment and
         Acceptance and shall be in the appropriate form.

                  (e) Participation. Each Bank may sell participations to one or
         more banks or other entities in or to all or a portion of its rights
         and obligations under this Agreement (including, without limitation,
         all or a portion of its Revolving Loan Commitments, the Revolving Loan
         Advances owing to it, its participation interest in the Letters of
         Credit, and the Revolving Loan Notes held by it); provided, however,
         that (i) such Bank's obligations under this Agreement (including,
         without limitation, its Revolving Loan Commitments to the Borrower
         hereunder) shall remain unchanged, (ii) such Bank shall remain solely
         responsible to the other parties hereto for the performance of such
         obligations, (iii) such Bank shall remain the holder of any such
         Revolving Loan Notes for all purposes of this Agreement, (iv) the
         Borrower, the Administrative Agent, and the Issuing Bank and the other
         Banks shall continue to deal solely and directly with such Bank in
         connection with such Bank's rights and obligations under this
         Agreement, and (v) such Bank shall not require the participant's
         consent to any matter under this Agreement, except that upon 10 days'
         written notice of such participation to the Administrative Agent and
         the Borrower, such Bank may permit the participant to possess consent
         rights with respect to changes in the principal amount of the Revolving
         Loan Notes, reductions in fees or interest, extensions of the
         applicable maturity date, or releases of any collateral or guarantor
         (except to the extent otherwise permitted herein or in any of the other
         Credit Documents). The Borrower hereby agrees that participants shall
         have the same rights under Sections 2.6, 2.7, 2.8, 2.9, 2.10, and 8.2
         as a Bank to the extent of their respective participation.

                  (f) Assignments or Pledges to Federal Reserve Banks. In
         addition to the foregoing rights of assignment and participation, any
         Bank may assign or

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<PAGE>   79

         pledge any portion of its rights under this Agreement (including the
         Revolving Loan Advances owed to such Bank) to any Federal Reserve Bank
         in accordance with applicable law without notice to or the consent of
         the Borrower or the Administrative Agent, provided that (i) such Bank
         shall not be relieved of its obligations under this Agreement as a
         result thereof and (ii) in no event shall the Federal Reserve Bank be
         entitled to direct the actions of the pledging or assigning Bank under
         this Agreement.

                  (g) Foreign Banks. If, pursuant to this Section 8.5 any
         interest in this Agreement or any Revolving Loan Note is transferred to
         any transferee which is organized under the laws of any jurisdiction
         other than the United States of America or any State thereof, the
         transferor Bank shall cause such transferee, concurrently with the
         effectiveness of such transfer, to comply with Section 2.11(c) as it
         relates to the transferor and the transferee.

                  (h) Disclosures. The Borrower authorizes each Bank to disclose
         to any participant or assignee (each, a "TRANSFEREE") and any
         prospective Transferee, subject to the provisions of Section 8.5(a) or
         (e), any and all financial information in such Bank's possession
         concerning the Borrower and its Affiliates which has been delivered to
         such Bank by or on behalf of the Borrower pursuant to this Agreement or
         which has been delivered to such Bank by or on behalf of the Borrower
         in connection with such Borrower's credit evaluation of the Borrower
         and its Affiliates prior to becoming a party to this Agreement.

         8.6 Adjustments. If any Bank (a "BENEFITTED BANK") shall at any time
receive any payment of all or part of its Revolving Loans, or interest thereon,
or receive any collateral in respect thereof (whether voluntarily or
involuntarily, by set-off, or otherwise), in a greater proportion than any such
payment to or collateral received by any other Bank, if any, in respect of such
other Bank's Revolving Loans, or interest thereon, such benefitted Bank shall
purchase for cash from the other Banks a participating interest in such portion
of each such other Bank's Revolving Loan, or shall provide such other Banks with
the benefits of any such collateral, or the proceeds thereof, as shall be
necessary to cause such benefitted Bank to share the excess payment or benefits
of such collateral or proceeds ratably with each of the Banks; provided,
however, that if all or any portion of such excess payment or benefits is
thereafter recovered from such benefitted Bank, such purchase shall be
rescinded, and the purchase price and benefits returned, to the extent of such
recovery, but without interest. The Borrower agrees that each Bank so purchasing
a portion of another Bank's Revolving Loan may exercise all rights of payment
(including, without limitation, rights of set-off) with respect to such portion
as fully as if such Bank were the direct holder of such portion.

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         8.7 Change in Accounting Principles or Tax Laws. If (i) any change in
accounting principles from those used in the preparation of the financial
statements of the Borrower referred to in Section 5.2(a) and (b) is hereafter
occasioned by the promulgation of rules, regulations, pronouncements and
opinions by or required by the Financial Accounting Standards Board or the
American Institute of Certified Public Accountants or the SEC (or successors
thereto or agencies with similar functions) and such change materially affects
the calculation of any component of any financial covenant, standard or term
found in this Agreement, or (ii) there is a material change in federal or
foreign tax laws which materially affects the Borrower's ability to comply with
the financial covenants, standards or terms found in this Agreement, the
Borrower, the Administrative Agent and the Banks agree to enter into
negotiations in order to amend such provisions so as to equitably reflect such
changes with the desired result that the criteria for evaluating the Borrower's
and its Subsidiaries' consolidated financial condition shall be the same after
such changes as if such changes had not been made. Unless and until such
provisions have been so amended, the provisions of this Agreement shall govern.

         8.8 Acknowledgments. The Borrower hereby acknowledges that:

                  (a) Neither Administrative Agent nor any Bank has any
         fiduciary relationship with or duty to the Borrower arising out of or
         in connection with this Agreement or any of the other Credit Documents,
         and the relationship between the Borrower and its Subsidiaries, on one
         hand, and Administrative Agent and Banks, on the other hand, in
         connection herewith or therewith is solely that of debtor and creditor;
         and

                  (b) no joint venture is created hereby or by the other Credit
         Documents or otherwise exists by virtue of the transactions
         contemplated hereby among the Banks or among the Borrower and the
         Banks.

         8.9 Confidentiality. Each Bank agrees to keep confidential all
non-public information provided to it by the Borrower pursuant to this Agreement
that is designated by the Borrower in writing as confidential; provided that
nothing herein shall prevent any Bank from disclosing any such information (i)
to either Administrative Agent or any other Bank, (ii) to any transferee, or
participant, or any prospective transferee or participant, set forth in Section
8.5 which receives such information having been made aware of the confidential
nature thereof, (iii) to its employees, directors, agents, attorneys,
accountants and other professional advisors which receives such information with
the understanding of the confidential nature thereof, (iv) upon the request or
demand of any examiner or other Governmental Authority having jurisdiction over
such Bank which receives such request having been made aware of the confidential
nature thereof, (v) in response to any order of any court or other Governmental
Authority or as may otherwise be required pursuant to any

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<PAGE>   81

requirement of law which response discloses the confidential nature of such
information, (vi) which has been publicly disclosed other than in breach of this
Agreement, or (vii) in connection with the exercise of any remedy hereunder.

         8.10 Effectiveness. This Agreement shall become effective on the date
(the "EFFECTIVE DATE") on which Borrower has satisfied the conditions precedent
listed in Section 3.1, which shall be evidenced by the execution and delivery of
this Agreement by and to the Administrative Agent.

         8.11 Notice. All notices and other communications under this Agreement
and the Revolving Loan Notes shall be in writing and mailed by certified mail
(return receipt requested), telecopied, telexed, hand delivered, or delivered by
a nationally recognized overnight courier, to the address for the appropriate
party specified in Schedule I or at such other address as shall be designated by
such party in a written notice to the other parties. Mailed notices shall be
effective when received. Telecopied or telexed notices shall be effective when
transmission is completed or confirmed by telex answerback. Delivered notices
shall be effective when delivered by messenger or courier. Notwithstanding the
foregoing, notices and communications to the Administrative Agent pursuant to
Article 2 or 7 shall not be effective until received by the Administrative
Agent.

         8.12 Choice of Law. This Agreement and the Revolving Loan Notes have
been prepared, are being executed and delivered, and are intended to be
performed in the State of Texas, and the substantive laws of the State of Texas
and the applicable federal laws of the United States shall govern the validity,
construction, enforcement, and interpretation of this Agreement and the
Revolving Loan Notes; provided, however, Chapter 346 of the Texas Finance Code
does not apply to this Agreement, the Swing Line Note, any Letter of Credit, or
the Revolving Loan Notes. Each Letter of Credit shall be governed by the Uniform
Customs and Practice for Documentary Credits, International Chamber of Commerce
Publication No. 500 (1993 version).

         8.13 Forum Selection. THE PARTIES HERETO IRREVOCABLY CONSENT TO THE
JURISDICTION OF THE COURTS OF THE STATE OF TEXAS AND OF ANY FEDERAL COURT
LOCATED IN SUCH STATE IN CONNECTION WITH ANY ACTION OR PROCEEDING ARISING OUT OF
OR RELATING TO THE CREDIT DOCUMENTS OR ANY TRANSACTIONS RELATED THERETO. THE
PARTIES HERETO AGREE AND SHALL NOT CONTEST THAT PROPER FORUM AND VENUE FOR ANY
ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THE CREDIT DOCUMENTS OR ANY
TRANSACTIONS RELATING THERETO ARE IN THE COURTS OF THE STATE OF TEXAS IN HARRIS
COUNTY, TEXAS, AND THE FEDERAL COURTS LOCATED IN HARRIS COUNTY, TEXAS. THE
PARTIES HERETO IRREVOCABLY WAIVE ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER
HAVE TO THE FOREGOING

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<PAGE>   82

BASED UPON CLAIMS THAT THE FOREGOING COURTS ARE AN INCONVENIENT
FORUM.

         8.14 Service of Process. IN ANY ACTION OR PROCEEDING ARISING OUT OF OR
RELATING TO THE CREDIT DOCUMENTS OR ANY TRANSACTIONS RELATING THERETO, TO THE
EXTENT ALLOWED BY APPLICABLE LAWS, THE PARTIES HERETO WAIVE PERSONAL SERVICE OF
ANY SUMMONS, COMPLAINT, OR OTHER PROCESS OR NOTICE AND AGREES THAT SERVICE BY
FIRST CLASS MAIL, RETURN RECEIPT REQUESTED, TO THE OTHER PARTIES HERETO AT THEIR
ADDRESS FOR NOTICES HEREUNDER, OR ANY OTHER FORM OF SERVICE PROVIDED FOR IN THE
TEXAS CIVIL PRACTICE LAW AND RULES THEN IN EFFECT SHALL CONSTITUTE GOOD AND
SUFFICIENT SERVICE UPON SUCH PARTIES.

         8.15 Jury Trial Waiver. TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
LAW, EACH PARTY HERETO VOLUNTARILY, KNOWINGLY, IRREVOCABLY AND UNCONDITIONALLY
(BY THEIR ACCEPTANCE HEREOF) WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION
OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS UNDER THIS AGREEMENT, ANY OTHER
CREDIT DOCUMENT OR UNDER ANY AMENDMENT, INSTRUMENT, DOCUMENT OR AGREEMENT
DELIVERED OR WHICH MAY IN THE FUTURE BE DELIVERED IN CONNECTION HEREWITH OR
ARISING FROM ANY RELATIONSHIP EXISTING IN CONNECTION WITH THIS AGREEMENT AND
WAIVES ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE (WHETHER
BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF THIS AGREEMENT, ANY OTHER
CREDIT DOCUMENT, ANY OTHER RELATED DOCUMENT, AND AGREES THAT ANY SUCH ACTION,
PROCEEDING OR DISPUTE SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY. THIS
PROVISION IS A MATERIAL INDUCEMENT TO THE BANK TO PROVIDE THE REVOLVING LOAN
NOTES, THE SWING LINE NOTE, THE LOAN, AND LETTERS OF CREDIT.

         8.16 Counterparts. This Agreement may be executed in multiple
counterparts which together shall constitute one and the same instrument.

         8.17 No Further Agreements. THIS WRITTEN AGREEMENT AND THE CREDIT
DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE
CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL
AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE
PARTIES.

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<PAGE>   83

         8.18 ARBITRATION.

                  (a) ANY CONTROVERSY OR CLAIM BETWEEN OR AMONG THE PARTIES
         HERETO INCLUDING, WITHOUT LIMITATION, THOSE ARISING OUT OF OR RELATING
         TO THIS AGREEMENT OR ANY RELATED AGREEMENTS OR INSTRUMENTS, INCLUDING
         ANY CLAIM BASED ON OR ARISING FROM AN ALLEGED TORT, SHALL BE DETERMINED
         BY BINDING ARBITRATION IN ACCORDANCE WITH THE FEDERAL ARBITRATION ACT
         (OR IF NOT APPLICABLE, THE APPLICABLE STATE LAW). THE RULES OF PRACTICE
         AND PROCEDURE FOR THE ARBITRATION OF COMMERCIAL DISPUTES OF ENDISPUTE,
         INC. (DOING BUSINESS AS J.A.M.S./ENDISPUTE AND REFERRED TO HEREIN AS
         J.A.M.S.), AND THE "SPECIAL RULES" SET FORTH BELOW. IN THE EVENT OF ANY
         INCONSISTENCY, THE SPECIAL RULES SHALL CONTROL. JUDGMENT UPON ANY
         ARBITRATION AWARD MAY BE ENTERED IN ANY COURT HAVING JURISDICTION. ANY
         PARTY TO THIS AGREEMENT MAY BRING AN ACTION, INCLUDING A SUMMARY OR
         EXPEDITED PROCEEDING, TO COMPEL ARBITRATION OF ANY CONTROVERSY OR CLAIM
         TO WHICH THIS AGREEMENT APPLIES IN ANY COURT HAVING JURISDICTION OVER
         SUCH ACTION.

                  (b) SPECIAL RULES. THE ARBITRATION SHALL BE CONDUCTED IN THE
         CITY OF BORROWER'S DOMICILE AT THE TIME OF THIS AGREEMENT'S EXECUTION
         AND ADMINISTERED BY J.A.M.S. WHO WILL APPOINT AN ARBITRATOR; IF
         J.A.M.S. IS UNABLE OR LEGALLY PRECLUDED FROM ADMINISTERING THE
         ARBITRATION, THEN THE AMERICAN ARBITRATION ASSOCIATION WILL SERVE. ALL
         ARBITRATION HEARINGS WILL BE COMMENCED WITHIN NINETY (90) DAYS OF THE
         DEMAND FOR ARBITRATION; FURTHER, THE ARBITRATOR SHALL ONLY, UPON A
         SHOWING OF CAUSE, BE PERMITTED TO EXTEND THE COMMENCEMENT OF SUCH
         HEARING FOR UP TO AN ADDITIONAL SIXTY (60) DAYS.

                  (c) RESERVATION OF RIGHTS. NOTHING IN THIS AGREEMENT SHALL BE
         DEEMED TO (i) LIMIT THE APPLICABILITY OF ANY OTHERWISE APPLICABLE
         STATUTES OF LIMITATION OR REPOSE AND ANY WAIVERS CONTAINED IN THIS
         AGREEMENT; OR (ii) BE A WAIVER BY THE ADMINISTRATIVE AGENT OF THE
         PROTECTION AFFORDED TO IT BY 12 U.S.C. SEC. 91 OR ANY SUBSTANTIALLY
         EQUIVALENT STATE LAW; OR (iii) LIMIT THE RIGHT OF THE ADMINISTRATIVE
         AGENT HERETO (A) TO EXERCISE SELF HELP REMEDIES SUCH AS (WITHOUT
         LIMITATION) SETOFF, OR (B) TO FORECLOSE AGAINST ANY REAL OR PERSONAL
         PROPERTY COLLATERAL, OR (C) TO OBTAIN FROM A COURT PROVISIONAL OR
         ANCILLARY REMEDIES SUCH AS (WITHOUT LIMITATION) INJUNCTIVE RELIEF, WRIT
         OR POSSESSION OR THE APPOINTMENT OF A RECEIVER. THE

                                       78
<PAGE>   84

         BANK MAY EXERCISE SUCH SELF HELP RIGHTS, FORECLOSE UPON SUCH PROPERTY,
         OR OBTAIN SUCH PROVISIONAL OR ANCILLARY REMEDIES BEFORE, DURING OR
         AFTER THE PENDENCY OF ANY ARBITRATION PROCEEDING BROUGHT PURSUANT TO
         THIS AGREEMENT. NEITHER THIS EXERCISE OF SELF HELP REMEDIES NOR THE
         INSTITUTION OR MAINTENANCE OF AN ACTION FOR FORECLOSURE OR PROVISIONAL
         OR ANCILLARY REMEDIES SHALL CONSTITUTE A WAIVER OF THE RIGHT OF ANY
         PARTY, INCLUDING THE CLAIMANT IN ANY SUCH ACTION, TO ARBITRATE THE
         MERITS OF THE CONTROVERSY OR CLAIM OCCASIONING RESORT TO SUCH REMEDIES.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       79
<PAGE>   85

         EXECUTED as of the date first above written.

                                        BORROWER:

                                        EAGLE USA AIRFREIGHT, INC.

                                        By: /s/ DOUGLAS A. SECKEL
                                           -------------------------------------
                                             Douglas A. Seckel, Treasurer

                                        ADMINISTRATIVE AGENT:

                                        BANK OF AMERICA, N.A., as Administrative
                                        Agent

                                        By: /s/ WILLIAM B. BORUS
                                           -------------------------------------
                                             William B. Borus, Vice President

                                        BANKS:

                                        BANK OF AMERICA, N.A.

Revolving Loan Commitment:              By: /s/ WILLIAM B. BORUS
$50,000,000                                -------------------------------------
                                             William B. Borus, Vice President

                                       80
<PAGE>   86

                                                                       EXHIBIT A

                                     FORM OF
                             COMPLIANCE CERTIFICATE

                                     [date]

Bank of America, N.A., as Administrative
Agent for the financial institutions parties
to the Credit Agreement referred to below
700 Louisiana, 7th Floor
Houston, Texas 77002

Attention: Mr. William B. Borus

Ladies and Gentlemen:

I refer to the Credit Agreement dated as of January 13, 2000 (as the same may be
modified from time to time, the "CREDIT AGREEMENT"), among EAGLE USA AIRFREIGHT,
INC. (the "BORROWER"), the financial institutions parties thereto, and Bank of
America, N.A., as Administrative Agent for such financial institutions, the
defined terms of which are used herein unless otherwise defined herein.

Attached as Schedule A are consolidated financial statements of the Borrower
dated as of _________________. Such consolidated financial statements present
fairly, in all material respects, the consolidated financial condition of the
Borrower as of their date, and the related results of operations for the periods
reflected therein, in each case in conformity with generally accepted accounting
principles.

Attached as Schedule B are calculations of the Applicable Margin and the
financial covenants set forth in Section 5.5 of the Credit Agreement based upon
the financial information set forth in Schedule A. Such calculations are
accurate and complete and have been made in compliance with the requirements of
the Credit Agreement.

I hereby certify that I have no knowledge of any Defaults or Events of Default
by the Borrower in the observance of any of the provisions in the Credit
Agreement which existed as of the date of the financial statements attached as
Schedule A or which exist as of the date of this letter.

                                        Very truly yours,

                                        EAGLE USA AIRFREIGHT, INC.

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

<PAGE>   87

                                                                       EXHIBIT B

                                     FORM OF
                        REVOLVING LOAN BORROWING REQUEST

                                     [date]

Bank of America, N.A., as Administrative
Agent for the financial institutions parties
to the Credit Agreement referred to below
700 Louisiana, 7th Floor
Houston, Texas 77002

Ladies and Gentlemen:

The undersigned, EAGLE USA AIRFREIGHT, INC., a Texas corporation ("BORROWER"),
refers to the Credit Agreement dated as of January 13, 2000 (as the same may be
modified from time to time, the "CREDIT AGREEMENT," the defined terms of which
are used in this Borrowing Request unless otherwise defined in this Borrowing
Request) among the Borrower, the financial institutions parties thereto, and
Bank of America, N.A., as agent for such financial institutions, and hereby
gives you irrevocable notice pursuant to Section 2.1(b)(i) of the Credit
Agreement that the undersigned hereby requests a Borrowing (the "PROPOSED
BORROWING") on the terms set forth below:

         Date of Borrowing(1)       :
                                             --------------------------------
         Type of Tranche(2)         :
                                             --------------------------------
         Aggregate Amount(3)        :
                                             --------------------------------
         Interest Period(4)         :
                                             --------------------------------

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

         (1) The Date of Borrowing for the Proposed Borrowing must be a Business
Day. The Borrower must give three (3) Business Days' advance notice for
Borrowings including LIBOR Tranches or same day notice for a Prime Rate
Borrowing.

         (2) The Type of Tranches comprising the Proposed Borrowing may be LIBOR
Tranches or the Prime Rate Tranche subject to the provisions of Section
2.1(a)(i) of the Credit Agreement.

         (3) The Aggregate Amount of the Proposed Borrowing must be in a minimum
amount of $1,000,000, and in multiples of $1,000,000 for any LIBOR Tranche, and
$500,000 for the Prime Rate Tranche, and in multiples of $100,000 for any Prime
Rate Tranche.

         (4) The Interest Period applies only to Borrowings including LIBOR
Tranches and may be one, two, three, or six months. Insert "N/A" for any Prime
Rate Borrowings.

<PAGE>   88

The undersigned hereby certifies that the following statements are true on the
date hereof, and will be true on the date of the Proposed Borrowing:

         (a) the representations and warranties contained in the Credit
Agreement are correct in all material respects, before and after giving effect
to the Proposed Borrowing and the application of the proceeds therefrom, as
though made on the date of the Proposed Borrowing;

         (b) no Default or Event of Default has occurred and remains uncured,
nor would result from the Proposed Borrowing or from the application of the
proceeds therefrom; and

         (c) following the making of the proposed Revolving Loan Borrowing and
all other Revolving Loan Borrowings to be made on the same day to the Borrower,
the aggregate outstanding principal amount of the Revolving Loan plus the
outstanding principal balance of the Swing Line Note plus the aggregate
outstanding principal amount of the Letter of Credit Exposure shall not exceed
the aggregate amount of the Revolving Loan Commitments.

                                             Very truly yours,

                                             EAGLE USA AIRFREIGHT, INC.

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

<PAGE>   89

                                                                       EXHIBIT C

                                     FORM OF

                         CONTINUATION/CONVERSION REQUEST

                                     [date]

Bank of America, N.A., as Administrative
Agent for the financial institutions parties
to the Credit Agreement referred to below
700 Louisiana, 7th Floor
Houston, Texas 77002

Ladies and Gentlemen:

The undersigned, EAGLE USA AIRFREIGHT, INC., a Texas corporation (the
"BORROWER"), refers to the Credit Agreement dated as of January 13, 2000 (as the
same may be modified from time to time, the "CREDIT AGREEMENT," the defined
terms of which are used in this Continuation/ Conversion Request unless
otherwise defined in this Continuation/Conversion Request), among the Borrower,
the financial institutions parties thereto, and Bank of America, N.A., as agent
for such financial institutions, and hereby gives you irrevocable notice
pursuant to Section 2.5(a)(ii) of the Credit Agreement that the undersigned
hereby requests a [conversion][continuation] of [outstanding Borrowings][an
outstanding Borrowing] into a new Borrowing (the "PROPOSED BORROWING") on the
terms set forth below:

Outstanding Borrowing #1
Date of Borrowing          :
                                   -----------------------
Type of Tranche            :
                                   -----------------------
Aggregate Amount(1)
   for Continuation/
   Conversion              :
                                   -----------------------
Interest Period            :
                                   -----------------------

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

         (1) The Aggregate Amount for Conversion with respect to Tranches must
be in multiples of $1,000,000 for LIBOR Tranches and $100,000 for the Prime Rate
Tranche. No continuation or conversion may be made if such continuation or
conversion would cause the aggregate amount of any LIBOR Tranche to be less than
$1,000,000 or the Prime Rate Tranche to be less than $500,000.

<PAGE>   90

[Outstanding Borrowing #2
Date of Borrowing          :
                                   ------------------------
Type of Tranche            :
                                   ------------------------
Aggregate Amount(1)
   for Continuation;
   Conversion              :
                                   ------------------------
Interest Period            :
                                   ------------------------

Proposed Borrowing
Date of Continuation
   or Conversion(2)        :
                                   ------------------------
Type of Tranche(3)         :
                                   ------------------------
Aggregate Amount(4)        :
                                   ------------------------
Interest Period(5)         :
                                   ------------------------

The undersigned hereby certifies that the following statements are true on the
date hereof, and will be true on the date of the Proposed Borrowing:

         (a) the representations and warranties contained in the Credit
Agreement are correct in all material respects, before and after giving effect
to the Proposed Borrowing and the application of the proceeds therefrom, as
though made on the date of the Proposed Borrowing; and

         (b) no Default or Event of Default has occurred and remains uncured,
nor would result from the Proposed Borrowing.

                                             Very truly yours,

                                             EAGLE USA AIRFREIGHT, INC.

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

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

         (2) The Date of the proposed continuation or conversion must be a
Business Day. The Borrower must give three (3) Business Days' advance notice for
conversions into or continuations of Borrowings comprised of LIBOR Tranches.

         (3) The Type of Tranches comprising a Proposed Borrowing may be the
Prime Rate Tranche or LIBOR Tranches.

         (4) The Aggregate Amount of the Proposed Borrowing must be in multiples
of $1,000,000 for LIBOR Tranches and $100,000 for the Prime Rate Tranche. No
continuation or conversion may be made if such continuation or conversion would
cause the aggregate amount of any LIBOR Tranche to be less than $1,000,000 or
the Prime Rate Tranche to be less than $500,000.

         (5) The Interest Period applies only to Borrowings comprised of LIBOR
Tranches and may be one, two, three, or six months. Insert "N/A" for Prime Rate
Borrowings.

<PAGE>   91

                                    EXHIBIT D

                                     FORM OF
                               REVOLVING LOAN NOTE
                                  ([BANK NAME])

$[Amount]                         Houston, Texas                          [date]

         For value received, the undersigned EAGLE USA AIRFREIGHT, INC., a Texas
corporation ("BORROWER"), hereby promises to pay to the order of [Bank Name]
("BANK"), the principal amount of [Amount] ($[ ]) or, if less, the aggregate
outstanding principal amount of the Revolving Loan Advances (as defined in the
Credit Agreement referred to below) made by the Bank to the Borrower, together
with accrued but unpaid interest on the principal amount of each such Revolving
Loan Advance from the date of such Revolving Loan Advance until such principal
amount is paid in full, at such interest rates, and at such times, as are
specified in the Credit Agreement.

         This Note is one of the Revolving Loan Notes referred to in, and is
entitled to the benefits of, and is subject to the terms of the Credit Agreement
dated as of January 13, 2000 (as the same may be modified from time to time, the
"CREDIT AGREEMENT"), among the Borrower, the financial institutions parties
thereto ("BANKS"), and Bank of America, N.A., as Administrative Agent for the
Banks ("ADMINISTRATIVE AGENT"). Capitalized terms used herein but not defined
herein shall have the meanings specified by the Credit Agreement. The Credit
Agreement, among other things, (a) provides for the making of Revolving Loan
Advances by the Bank to the Borrower from time to time, the indebtedness of the
Borrower resulting from each such Revolving Loan Advance being evidenced by this
note, and (b) contains provisions for acceleration of the maturity of this Note
upon the happening of certain events stated in the Credit Agreement and for
prepayments of principal prior to the maturity of this Note upon the terms and
conditions specified in the Credit Agreement.

         Both principal and interest are payable to the Administrative Agent in
the currency, at the times, in the locations, and in the manner specified in the
Credit Agreement. The Bank shall record all Revolving Loan Advances and payments
of principal made under this Note, but no failure of the Bank to make such
recordings shall affect the Borrower's repayment obligations under this Note.

         It is contemplated that because of prepayments there may be times when
no indebtedness is owed under this Note. Notwithstanding such prepayments, this
Note

<PAGE>   92

shall remain valid and shall be in force as to Revolving Loan Advances made
pursuant to the Credit Agreement after such prepayments.

         It is the intention of the Bank and the Borrower to conform strictly to
any applicable usury laws. Accordingly, the terms of the Credit Agreement
relating to the prevention of usury will be strictly followed.

         THIS WRITTEN AGREEMENT AND THE CREDIT DOCUMENTS REPRESENT THE FINAL
AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.

THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

         EXECUTED as of the date first above written.

                                             EAGLE USA AIRFREIGHT, INC.

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

<PAGE>   93

                                    EXHIBIT E

                                     FORM OF
                            ASSIGNMENT AND ACCEPTANCE

                                     [date]

         Reference is made to the Credit Agreement dated as of January 13, 2000
(as the same may be modified from time to time, the "CREDIT AGREEMENT"), among
EAGLE USA AIRFREIGHT, INC., a Texas corporation (the "BORROWER"), the financial
institutions parties thereto ("BANKS"), and Bank of America, N.A., as
Administrative Agent for the Banks ("ADMINISTRATIVE AGENT"). Capitalized terms
used herein but not defined herein shall have the meanings specified by the
Credit Agreement.

         Pursuant to the terms of the Credit Agreement,[_________] ("ASSIGNOR"),
wishes to assign and delegate to [________] ("ASSIGNEE"), [_____]%(1) of its
rights and obligations under the Credit Agreement. Therefore, Assignor,
Assignee. and the Administrative Agent agree as follows:

         1. The Assignor hereby sells and assigns and delegates to the Assignee,
and the Assignee hereby purchases and assumes from the Assignor, without
recourse to the Assignor and without representation or warranty except for the
representations and warranties specifically set forth in clauses (i), (ii), and
(iii) of Section 2 of this Assignment and Acceptance, a [___]% interest in and
to all of the Assignor's rights and obligations under the Credit Agreement and
the other Credit Documents as of the Effective Date (as defined below),
including such percentage interest in the Assignor's Revolving, Loan Commitment,
the Revolving Loan Advances owing to the Assignor, the Assignor's ratable
participation interest in the Letters of Credit, and the Note[s] held by the
Assignor.

         2. The Assignor (i) represents and warrants that, prior to executing
this Assignment and Acceptance, its Revolving Loan Commitment is $[_______], the
aggregate outstanding principal amount of Revolving Loan Advances owed by the
Borrower to the Assignor is $[_______] and its ratable share of the Letter of
Credit Exposure is $[________]; (ii) represents and warrants that it is the
legal and beneficial owner of the interest being assigned by it hereunder and
that such interest is free and clear of an adverse claim; (iii) makes no
representation or warranty and assumes no responsibility with respect to any
statements, warranties, or representations made in or in connection with the
Credit Agreement or any other Credit Document or the

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

         (1) Specify percentage to four (4) decimal points.

<PAGE>   94

execution, legality, validity, enforceability, genuineness, sufficiency, or
value of the Credit Agreement or any other Credit Document or any other
instrument or document furnished pursuant thereto; (iv) makes no representation
or warranty and assumes no responsibility with respect to the financial
condition of the Borrower or any Guarantor or the performance or observance by
the Borrower or any Guarantor of any of its obligations under the Credit
Agreement or any other Credit Document or any other instrument or document
furnished pursuant thereto; and (v) attaches the Note[s] referred to in Section
I above and requests that the Administrative Agent exchange such Note[s] for a
new Note dated [________] made by [_______________] in the principal amount of
$[____________] payable to the order of the Assignee[, and a new Note dated
[_______________], in the principal amount of $[_______] to the order of
Assignor].

         3. The Assignee (i) confirms that it has received a copy of the Credit
Agreement, together with copies of the financial statements referred to in
Section 5.2 thereof and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into this
Assignment and Acceptance; (ii) agrees that it will, independently and without
reliance upon the Administrative Agent, the Assignor, or any other Bank, and
based on such documents and information as it shall deem appropriate at the
time, continue to make its own credit decisions in taking or not taking action
under the Credit Agreement or any other Credit Document; (iii) appoints and
authorizes the Administrative Agent to take such action as agent on its behalf
and to exercise such powers under the Credit Agreement and any other Credit
Document as are delegated to the Administrative Agent by the terms thereof,
together with such powers as are reasonably incidental thereto; (iv) agrees that
it will perform all of the obligations which by the terms of the Credit
Agreement or any other Credit Document are required to be performed by it as a
Bank; (v) specifies as its Applicable Lending Office and address for notices the
offices set forth beneath its name on the signature pages hereof; (vi) attaches
the forms prescribed by the Internal Revenue Service of the United States
certifying as to the Assignee's status for purposes of determining exemption
from United States withholding taxes with respect to all payments to be made to
the Assignee under the Credit Agreement and the Notes or such other documents as
are necessary to indicate that all such payments are subject to such rates at a
rate reduced by an applicable tax treaty2; and (vii) represents that it is an
Eligible Assignee.

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

         (2) If the Assignee is organized under the laws of a jurisdiction
outside the United States.

<PAGE>   95

         4. The effective date for this Assignment and Acceptance shall be
[_____] ("EFFECTIVE DATE")3 and following the execution of this Assignment and
Acceptance, the Administrative Agent will record it in the Register.

         5. Upon such recording, and as of the Effective Date. (i) the Assignee
shall be a party to the Credit Agreement for all purposes and, to the extent
provided in this Assignment and Acceptance, have the rights and obligations of a
Bank thereunder and (ii) the Assignor shall, to the extent provided in this
Assignment and Acceptance, relinquish its rights (other than rights against the
Borrower pursuant to Sections 8.1 and 8.2 of the Credit Agreement, which shall
survive this Assignment and Acceptance) and be released from its obligations
(other than obligations to the Administrative Agent pursuant to Sections 7.5 and
7.6 of the Credit Agreement, which shall survive this Assignment and Acceptance)
under the Credit Agreement.

         6. Upon such recording, from and after the Effective Date, the
Administrative Agent shall make all payments under the Credit Agreement and the
Notes in respect of the interest assigned hereby (including all payments of
principal, interest, and fees) to the Assignee. The Assignor and Assignee shall
make all appropriate adjustments for amounts earned under the Credit Agreement
and the Notes for periods prior to the Effective Date directly between
themselves.

         7. This Assignment and Acceptance shall be governed by, and construed
and enforced in accordance with, the laws of the State of Texas.

         The parties hereto have caused this Assignment and Acceptance to be
duly executed as of the date first above written.

                                            ASSIGNOR:

                                            [ASSIGNOR]

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

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

         (3) See Section 8.5. Such date shall be at least three (3) Business
Days after the execution of this Assignment and Acceptance.

<PAGE>   96

                                            ASSIGNEE:

                                            [ASSIGNEE]

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

                                            Notice Address:

                                            Address:

                                            Attention:
                                                      --------------------------
                                            Telephone:
                                                      --------------------------
                                            Telecopy:
                                                     ---------------------------

                                            Applicable Lending Office:
                                            Address:
                                                    ----------------------------
                                            Attention:
                                                      --------------------------
                                            Telephone:
                                                      --------------------------
                                            Telecopy:
                                                     ---------------------------

                                            Administrative Agent:

                                            BANK OF AMERICA, N.A.,
                                            as Administrative Agent

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

<PAGE>   97

[ACKNOWLEDGED
this________________day of _________________, 1999.

BORROWER:

EAGLE USA AIRFREIGHT, INC.

By:
   ---------------------------------
Name:
     -------------------------------
Title:                              ](4)
      ------------------------------

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

         (4) The Borrower's acknowledgment of this Assignment and Acceptance is
not required.

<PAGE>   98

                                                                       EXHIBIT F

                     FORM OF FINANCIAL CONDITION CERTIFICATE

TO:      Bank of America, N.A., as Administrative Agent for the Banks

RE:      Credit Agreement dated as of January 13, 2000 (the "CREDIT AGREEMENT")
         by and among the various financial institutions parties thereto
         (collectively, the "BANKS"), EAGLE USA AIRFREIGHT, INC. (the
         "BORROWER") and Bank of America, N.A., as Administrative Agent for the
         Banks.

         THIS FINANCIAL CONDITION CERTIFICATE of the Borrower is delivered on
behalf of the Borrower in connection with and as a condition to the making of
the Revolving Loan on or about the Effective Date under the Credit Agreement.
Capitalized terms used herein without definition have the meanings given thereto
in the Credit Agreement.

         I hereby certify to the Administrative Agent and each Bank, solely on
behalf of the Borrower, in good faith and to my knowledge and belief, as
follows:

         1. I am the officer of Borrower who has the knowledge for providing the
statements made herein.

         2. I have carefully reviewed the contents of this Certificate, and I
have conferred with counsel for the Borrower for the purpose of discussing the
meaning of its contents.

         3. I have concluded, in good faith and to my knowledge and belief, that
as of the Effective Date after giving effect to the consummation of the
transactions contemplated by the Credit Agreement as of such date, including,
but not limited to, the initial Revolving Loan Advances to occur on or about
such date:

                  (a) the fair salable value of the assets of the Borrower and
         its Subsidiaries on a consolidated basis exceed the total amount of
         liabilities (including contingent, subordinated, unmatured and
         unliquidated liabilities, in each case valued at the probable liability
         of the Borrower and its Subsidiaries with respect thereto), and
         therefore the Borrower and its Subsidiaries on a consolidated basis are
         not insolvent;

                  (b) the Borrower and each of its Subsidiaries will have
         sufficient cash flow from operations, or will be able to realize upon
         its assets, to enable it and its Subsidiaries to pay their respective
         debts, other

<PAGE>   99

         liabilities, and probable liabilities in respect of contingent
         obligations and other commitments, in each case as they mature in the
         ordinary course of business;

                  (c) neither the Borrower nor any of its Subsidiaries has an
         unreasonably small capital with which to engage in their respective
         businesses; and

                  (d) neither the Borrower nor any of its Subsidiaries has
         incurred any obligation under the Credit Agreement, the Revolving Loan
         Notes, or any of the other Credit Documents, or made any transfer
         pursuant to any thereof, with actual intent to hinder, delay or defraud
         either present or future creditors of the Borrower, or any of its
         Subsidiaries.

         I understand that the Administrative Agent and the Banks are relying on
the truth and accuracy of the foregoing in connection with their entering into
the Credit Agreement and the other Credit Documents and consummating the
transactions contemplated thereby to be consummated on the date hereof.

         DATED: January 12, 2000.

                                            EAGLE USA AIRFREIGHT, INC.

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

<PAGE>   100

                                                                       EXHIBIT G

                                JOINDER AGREEMENT
                                 ([SUBSIDIARY])

         [Subsidiary], a corporation (the "SUBSIDIARY"), hereby agrees with (a)
Bank of America, N.A., as Administrative Agent (the "ADMINISTRATIVE AGENT"),
under the Credit Agreement dated as of January 13, 2000, among EAGLE USA
AIRFREIGHT, INC., a Texas corporation, the financial institutions parties
thereto, and the Administrative Agent (as modified from time to time, the
"CREDIT AGREEMENT," the capitalized terms of which are used herein unless
otherwise defined herein), and (b) the other parties to the Guaranty dated as of
January 13, 2000, each executed in connection with the Credit Agreement, as
follows:

         In accordance with Sections 5.19 and 5.21, of the Credit Agreement, as
applicable, the Subsidiary hereby (a) joins the Guaranty as a party thereto and
assumes all the obligations of a Guarantor (as defined in the Guaranty) under
the Guaranty, (b) agrees to be bound by the provisions of the Guaranty and the
Subsidiary Security Agreement as if the Subsidiary had been an original party to
the Guaranty, and (c) confirms that, after joining the Guaranty as set forth
above, the representations and warranties set forth in the Credit Agreement and
the Guaranty with respect to the Subsidiary are true and correct in all material
respects as of the date of this Joinder Agreement.

         For purposes of notices under the Guaranty, the notice address for the
Subsidiary is as follows:

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

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

                  ---------------------------------------
                  Attention:
                              ---------------------------
                  Telephone:  (     )
                                     --------------------
                  Telecopy:   (     )
                                     --------------------

         THIS WRITTEN AGREEMENT AND THE CREDIT DOCUMENTS REPRESENT THE FINAL
AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.

THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES.

<PAGE>   101

         IN WITNESS WHEREOF this Joinder Agreement is executed and delivered as
of the ______ day of _________________________, 19_____.

                                                     [SUBSIDIARY]

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

<PAGE>   102

                                                                       EXHIBIT H

                                     FORM OF
                           SWING LINE PROMISSORY NOTE

$10,000,000.00                    Houston, Texas                January 13, 2000

         FOR VALUE RECEIVED, EAGLE USA AIRFREIGHT, INC., a Texas corporation
("MAKER"), promises to pay to the order of BANK OF AMERICA, N.A., in its
capacity as Swing Line Lender (as defined in the Loan Agreement referred to
herein below) ("BANK"), at its office located at 700 Louisiana, 7th Floor,
Houston, Harris County, Texas, or at such other address in Houston, Harris
County, Texas, given to Maker by Bank, the principal sum of Ten Million and
No/100 Dollars ($10,000,000.00), or so much thereof as may be advanced and
outstanding hereunder, together with accrued interest thereon, as hereinafter
provided.

         This Swing Line Note has been executed and delivered pursuant to, and
is entitled to the benefits of, the terms of that certain Credit Agreement dated
January 13, 2000 (as the same may be renewed, extended, restated, modified,
supplemented, amended and rearranged from time to time, the "LOAN AGREEMENT"),
executed by and among Maker, Bank, Issuing Bank, Swing Line Lender, and the
other Banks parties thereto from time to time, and is the note defined therein
as the "SWING LINE NOTE." Each capitalized term not expressly defined herein
shall have the meaning given to such term in the Loan Agreement. The terms of
the Loan Agreement shall govern in the case of any inconsistency between such
terms and the terms hereof. The advances evidenced by this Swing Line Note are
revolving loans and as such, subject to the terms of the Loan Agreement, prior
to the Revolving Loan Maturity Date, Maker may borrow, repay, and reborrow the
same hereunder.

1. Interest and Payment.

                  (a) Maturity. The principal of this Swing Line Note, and all
accrued but unpaid interest thereon, shall be due and payable in full on the
earlier of (i) the Revolving Loan Maturity Date or (ii) the date on which such
amounts become due and payable pursuant to Section 6.2 of the Loan Agreement.

                  (b) Accrual of Interest. Reference is hereby made to the
provisions of Sections 2.3 and 2.5 of the Loan Agreement relating to the
interest rate at which interest shall accrue on this Swing Line Note.
Accordingly, subject to Section 2.5(d) of the Loan Agreement and the terms
hereof, interest on this Swing Line Note shall accrue at the rate provided for
in Section 2.3(b) of the Loan Agreement.

<PAGE>   103

                  (c) Interest Payments. Interest hereon shall be due and
payable on the dates provided for in Section 2.3(b) of the Loan Agreement.

2. Default. The occurrence of an Event of Default under the Loan Agreement shall
constitute an Event of Default under this Swing Line Note.

3. All Remedies Available. Upon the occurrence and during the continuation of an
Event of Default, the holder hereof, acting by and through Administrative Agent
in accordance with and subject to the terms of Article 6 of the Loan Agreement,
shall have all of its rights as provided for in the Loan Agreement. Without
limiting the foregoing, during the continuance of an Event of Default, Bank may
at its option, cease making advances hereunder (regardless of any action or
inaction taken by the Majority Banks with respect to the particular event of
Default).

4. Usury Savings Provisions.

         (a) General Limitation. Notwithstanding anything herein or in any other
Credit Document, expressed or implied, to the contrary, in no event shall any
interest rate charged hereunder or under any other Credit Document, or any
interest contracted for, taken, reserved, collected or received by Bank, or any
other holder hereof, exceed the Highest Lawful Rate. This Swing Line Note, the
amounts payable hereunder and the rights of Bank, or any other holder hereof,
with respect hereto, are in all events subject to the terms of the Loan
Agreement, including, without limitation, Section 2.5(d) thereof.

5. General Provisions.

         (a) Business Days. Whenever any payment of principal or interest under
this Swing Line Note shall be due on a day which is not a Business Day, the date
for payment thereof shall be extended to the next succeeding Business Day, and
such extension of time shall be included in the computation of the amount of
interest then due and payable.

         (b) Notices. Any notice required or which any party desires to give
under this Swing Line Note shall be given and effective as provided in Section
8.6 of the Loan Agreement.

         (c) Assignments/Participations. Maker acknowledges and agrees that the
holder of this Swing Line Note may, at any time and from time to time, assign
all or a portion of its interest in this Swing Line Note or transfer to any
Person a participation interest in this Swing Line Note, subject to and in
accordance with the terms and conditions of the Loan Agreement, including
Section 8.5 thereof.

<PAGE>   104

         (d) GOVERNING LAW. THIS SWING LINE NOTE SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF TEXAS, OR TO THE EXTENT
THAT UNITED STATES FEDERAL LAW APPLIES PURSUANT TO SECTION 8.7 OF THE LOAN
AGREEMENT OR OTHERWISE, UNITED STATES FEDERAL LAW.

         (e) INTEGRATION. THIS SWING LINE NOTE AND THE OTHER CREDIT DOCUMENTS
REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY
EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.
THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

         IN WITNESS WHEREOF, Maker has duly executed this Swing Line Note as of
the date first above written.

                                            MAKER:

                                            EAGLE USA AIRFREIGHT, INC.,
                                            a Texas corporation

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

<PAGE>   105

                                                                       EXHIBIT I

                                    GUARANTY

            Each of the undersigned ("GUARANTOR", whether one or more), for
and in consideration of the sum of Ten and No/100 Dollars ($10.00) and other
good and valuable consideration, the sufficiency and receipt of which are hereby
acknowledged, and to induce BANK OF AMERICA, N.A., in its capacity as
Administrative Agent, and Issuing Bank, and each Bank (as such term is defined
in the hereafter defined Loan Agreement), at any time or from time to time to
loan monies or to otherwise extend credit, with or without security, to or for
the account of EAGLE USA AIRFREIGHT, INC., a Texas corporation ("BORROWER"), in
accordance with the terms of the hereinafter defined Loan Agreement, hereby,
jointly and severally, agree with Administrative Agent, Issuing Bank, and each
Bank as follows:

         1. Guarantor, jointly and severally, unconditionally guarantees the
prompt payment to Administrative Agent and each Bank of the following (the
"GUARANTEED INDEBTEDNESS") subject however to the limitations set forth in
paragraph 29:

         Any and all indebtedness, obligations, and liabilities of Borrower to
         Banks (individually and collectively) of any kind, type, or nature,
         whether now existing or hereafter arising under and in connection with
         the Credit Agreement dated January 13, 2000, among Borrower, Bank of
         America, N.A., as Administrative Agent, Swing Line Lender, and Issuing
         Bank, and each of the other Banks from time to time made a party
         thereto and the Swing Line Note (as the same may be amended, modified,
         supplemented, rearranged, and restated from time to time, the "LOAN
         AGREEMENT"), including all principal, accrued interest, and other
         amounts owing by Borrower under the Revolving Loan Notes (as such term
         is defined in the Loan Agreement), and each of the other Credit
         Obligations (as such term is defined in the Loan Agreement).

         2. All capitalized terms used in this Guaranty, which are not otherwise
defined herein, shall have the meanings assigned to such terms in the Loan
Agreement (regardless of whether or not specific reference is made to the Loan
Agreement).

         3. If the Guaranteed Indebtedness is not paid by Guarantor when due, as
required herein, and this Guaranty is placed in the hands of an attorney for
collection, or if this Guaranty is enforced by suit or through the Bankruptcy
Court or through any other judicial proceedings, Guarantor shall pay to
Administrative Agent (or any Bank, as the case may be) an amount equal to the
reasonable attorneys' fees and reasonable collection costs incurred by
Administrative Agent (or any Bank, as the case may be) in the collection of the
Guaranteed Indebtedness.

<PAGE>   106

         4. (a) Guarantor hereby expressly grants to each Bank a right of setoff
against all deposits and other sums at any time held or credited by or due from
such Bank to Guarantor. The rights of each Bank under this paragraph 4 are in
addition to other rights and remedies (including, without limitation, other
rights of setoff) which such Bank may have at law, in equity, or by agreement.

            (b) Upon the occurrence and during the continuation of any Event
of Default, each Bank is hereby authorized at any time and from time to time, to
the fullest extent permitted by applicable law, at its option, without notice,
demand or liability to Guarantor, to set off and apply any and all deposits
(general or special, time or demand, provisional or final, excepting, however,
any fiduciary or escrow accounts established by Guarantor into which only funds
of unrelated third parties are deposited, provided that Guarantor has informed
such Bank and Administrative Agent in writing of the nature of such accounts) at
any time held, and other indebtedness at any time owing, by such Bank to or for
the credit or the account of Guarantor against any and all of the Guaranteed
Indebtedness, in such order and manner as such Bank may determine, subject,
however, to the terms and provisions of the Loan Agreement, regardless of
whether Administrative Agent or such Bank (acting through Administrative Agent
in accordance with the Loan Agreement) shall have made any demand under this
Guaranty, and although such Guaranteed Indebtedness may be unmeasured.

         5. This is an absolute, complete, and continuing Guaranty, and no
notice of the Guaranteed Indebtedness or any extension of credit heretofore or
hereafter contracted by or extended to Borrower pursuant to the Loan Agreement
need be given to Guarantor. Borrower and Banks (through Administrative Agent or
otherwise) may rearrange, extend, and/or renew the Guaranteed Indebtedness
without notice to Guarantor and in such event Guarantor will remain fully bound
hereunder on the Guaranteed Indebtedness. Further, any Bank may assign all or
any portion of its respective interest in the Revolving Loan and its obligations
thereunder, subject to and in accordance with the terms of the Loan Agreement,
without giving notice thereof to Guarantor, or obtaining the consent thereto of
Guarantor, and, on the effective date of any such assignment pursuant to an
Assignment and Acceptance contemplated by Section 8.5 of the Loan Agreement, the
assignee thereunder shall be a Bank for purposes of this Guaranty. Guarantor
expressly waives all notices of any kind, presentment for payment, demand for
payment, protest, notice of protest, notice of intent to accelerate, notice of
acceleration, dishonor, diligence, notice of any adverse change in the financial
condition of Borrower, notice of any adjustment, indulgence, forbearance or
compromise that might be granted or given by any Bank (through Administrative
Agent or otherwise) to Borrower, and also notice of acceptance of this Guaranty,
acceptance on the part of each Bank (through Administrative Agent or otherwise)
being conclusively presumed by Guarantor's execution and delivery of this
Guaranty. The liability and obligations of Guarantor hereunder shall not be
affected or

                                        2

<PAGE>   107

impaired by any action or inaction by Banks (through Administrative Agent or
otherwise) in regard to any matter waived or notice of which is waived by
Guarantor in this paragraph or in any other paragraph of this Guaranty.

         6. Guarantor authorizes Banks (through Administrative Agent or
otherwise), without notice or demand and without affecting Guarantor's liability
hereunder, (a) to take and hold security for the payment of this Guaranty and/or
the Guaranteed Indebtedness, and to exchange, enforce, waive and/or release any
such security; (b) to apply such security and direct the order or manner of sale
thereof as Banks (through Administrative Agent or otherwise) in their discretion
may determine (but subject to the requirements of the Loan Agreement); (c) to
obtain a guaranty of the Guaranteed Indebtedness from any one or more other
Persons whomsoever and to enforce, waive, rearrange, modify, limit or release at
any time or times such other Persons from their respective obligations under
such guaranties; and (d) to fully or partially release at any time any guarantor
which executes this Guaranty or any other guaranty of the Guaranteed
Indebtedness, whether with or without consideration.

         7. Guarantor waives any right to require Banks (through Administrative
Agent or otherwise) to: (a) proceed against, or make any effort at the
collection of the Guaranteed Indebtedness from Borrower or any other guarantor
or Person liable for the Guaranteed Indebtedness; (b) proceed against or exhaust
any collateral held by Banks (through Administrative Agent or otherwise) as
security for the Guaranteed Indebtedness (or any part thereof); or (c) pursue,
through Administrative Agent or otherwise as permitted thereby, any other remedy
available to Banks under any other Credit Document. Guarantor further waives any
and all rights and remedies which Guarantor may have or be able to assert by
reason of the provisions of Chapter 34 of the Texas Business and Commerce Code
or Section 3.605 of the Texas Uniform Commercial Code or any right of
subrogation. Guarantor waives any defense arising by reason of any lack of
corporate authority or power, or other defense of Borrower or any other
guarantor of the Guaranteed Indebtedness (other than the defense of payment),
and Guarantor shall remain liable under this Guaranty regardless of whether
Borrower or any other guarantor be found not liable on the Guaranteed
Indebtedness for any reason, including, without limitation, the bankruptcy,
insolvency, or corporate dissolution of Borrower or any such other guarantor,
even though rendering the Guaranteed Indebtedness void or unenforceable or
uncollectible as against Borrower or any such other guarantor. This Guaranty
shall continue to be effective or be reinstated, as the case may be, if at any
time any payment of any of the Guaranteed Indebtedness is rescinded or must
otherwise be returned by any Bank (or Administrative Agent) upon the insolvency,
bankruptcy or reorganization of Borrower or otherwise, all as though such
payment had not been made and Guarantor will, thereupon, guarantee pursuant
hereto payment of such amount as to which a refund or restitution has been made,
together with interest accruing thereon subsequent to the date which is five
days after the date of such refund or restitution at the Default

                                       3
<PAGE>   108

Rate and the collection costs and fees (including, without limitation,
reasonable attorneys' fees) applicable thereto.

         8. Guarantor hereby represents and warrants to Banks and Administrative
Agent that the Revolving Loan made available to Borrower in accordance with the
terms of the Loan Agreement has benefitted, and does benefit, Guarantor,
directly or indirectly.

         9. Upon the occurrence of an Event of Default, subject to the terms and
provisions of the Loan Agreement, the Majority Banks may, at their option,
direct Administrative Agent to declare the unpaid balance of the Guaranteed
Indebtedness to be immediately due and payable, and thereupon such Guaranteed
Indebtedness shall immediately be due and payable without presentation, notice,
protest, notice of protest, notice of dishonor, notice of intent to accelerate,
or notice of acceleration, all of which are hereby expressly waived by Guarantor
(except as specifically provided for in the Loan Agreement).

         10. To the extent permitted by applicable law, the liability and
obligations of Guarantor hereunder shall not be affected or impaired by, to the
extent applicable, (a) the failure of Administrative Agent on behalf of Banks,
or any other party to exercise diligence or reasonable care in the preservation,
protection or other handling or treatment of all or any part of any collateral
securing payment of all or any part of the Guaranteed Indebtedness, (b) the
failure of any Lien intended to be granted or created pursuant to any Credit
Document to secure the Guaranteed Indebtedness to be properly perfected or
created or the unenforceability of any such Lien for any other reason, or (c)
the subordination of any such Lien to any Lien of any other Person.

         11. To the maximum extent permitted by applicable law, Administrative
Agent, on behalf of Banks, may pursue any remedy available to it pursuant to and
in accordance with the requirements of the Loan Agreement, without altering the
obligations of Guarantor hereunder and without liability to Guarantor, even
though the pursuit of such remedy may result in Guarantor's loss of rights of
subornation, including, without limitation, pursuing others liable for the
Guaranteed Indebtedness. Guarantor hereby agrees that in no event shall any such
payment by Guarantor in respect of the Guaranteed Indebtedness entitle it, by
subornation or otherwise, to exercise any rights against Borrower or to
participate in any security now or hereafter held by any Bank, or Administrative
Agent on behalf of Banks, for payment of the Guaranteed Indebtedness prior to
ninety (90) days (or the applicable preference period if such period is longer
than ninety [90] days) after the making of any such payment by Guarantor in
respect of the Guaranteed Indebtedness.

         12. Notwithstanding any change in Borrower's status, including, without
limitation, as a result of any dissolution of Borrower, any sale, lease, or
transfer of any

                                       4
<PAGE>   109

assets of Borrower, any changes in the stockholders, partners or members of
Borrower, or any reorganization of Borrower, this Guaranty shall continue, and
Guarantor shall remain liable for the Guaranteed Indebtedness.

         13. The liability of Guarantor for the payment of the Guaranteed
Indebtedness is primary and not secondary.

         14. Guarantor is familiar with and has independently reviewed the books
and records relating to the financial condition of Borrower; Guarantor is not,
however, relying on such financial condition as an inducement to entering into
this Guaranty. As of the date hereof, and after giving effect to this Guaranty
and the contingent obligations evidenced hereby, (a) the aggregate fair market
value of Guarantor's assets exceeds its liabilities (whether contingent,
subordinated, unmeasured, unliquidated or otherwise), (b) Guarantor has
sufficient cash flow to enable it to pay its Debt as it matures, and (c)
Guarantor has a reasonable amount of capital to conduct its business as
presently contemplated.

         15. Guarantor acknowledges that Guarantor is not relying on any
representations (oral or otherwise) of Administrative Agent, any Bank, or any
other Person (other than as expressly described in this Guaranty) as an
inducement to enter into this Guaranty.

         16. This Guaranty was reviewed by Guarantor, and Guarantor acknowledges
and agrees that Guarantor (a) understands fully all the terms of this Guaranty
and the consequences and implications of Guarantor's execution of this Guaranty,
and (b) has been afforded an opportunity to have this Guaranty reviewed by, and
to discuss the terms, consequences and implications of this Guaranty with, an
attorney or such other Persons as Guarantor may have desired. Guarantor has also
reviewed the Loan Agreement, and represents and warrants to Bank that all
representations and warranties made in the Loan Agreement by Borrower with
respect to Guarantor are true and correct.

         17. This Guaranty is and shall be in every particular available to the
successors of Administrative Agent and each Bank and is and shall be fully
binding upon the successors and assigns of Guarantor. This Guaranty is intended
for and shall inure to the benefit of Administrative Agent and each Bank. This
Guaranty shall be transferable with the same force and effect and to the same
extent that the Guaranteed Indebtedness is transferable pursuant to an
Assignment and Acceptance provided for in the Loan Agreement.

         18. All amounts becoming payable by Guarantor to any Bank (or
Administrative Agent on such Bank's behalf) under this Guaranty shall be payable
at

                                       5
<PAGE>   110

Administrative Agent's offices in Houston, Harris County, Texas specified in
Schedule I to the Loan Agreement.

         19. All notices, demands, requests, and communications permitted or
required under this Guaranty shall be in writing and, if given to Guarantor at
its address set forth on the signature page hereof or if given to Administrative
Agent or any Bank at its address set forth in Schedule I to the Loan Agreement
or in the applicable Assignment and Acceptance, in each case in a manner
provided for in Section 8.5 of the Loan Agreement, shall be effective at the
time provided for in Section 8.5 of the Loan Agreement.

         20. It is the intention of the parties hereto to comply strictly with
all applicable usury laws; accordingly, it is agreed that notwithstanding any
provisions of this Guaranty to the contrary, or in any documents securing
payment hereof or otherwise relating hereto, in no event shall this Guaranty or
such documents require the payment or permit the collection of an aggregate
amount of interest in excess of the maximum amount permitted by such laws,
including, without limitation, the laws of the State of Texas and the laws of
the United States of America. If any interest in excess of such maximum amount
is determined to be contracted for, charged or received under this Guaranty or
under the terms of any such documents securing payment hereof or otherwise
relating hereto, or if under any circumstance whatsoever the amount of interest
(including all amounts payable hereunder which are not denominated as interest
but which are determined to constitute interest under applicable usury laws)
contracted for, charged or received under this Guaranty shall exceed the maximum
amount of interest permitted by such applicable usury laws, then in any such
event (a) the provisions of this paragraph shall govern and control, (b)
Guarantor shall not be obligated to pay the amount of such interest to the
extent that it is in excess of the maximum amount of interest permitted by such
applicable usury laws, (c) any such excess interest which may have been
collected from Guarantor shall be either applied as a credit against the then
unpaid Guaranteed Indebtedness or, if the Guaranteed Indebtedness shall have
been paid in full, refunded to Guarantor, and (d) the effective rate of interest
shall be automatically reduced to the maximum lawful contract rate allowed under
such applicable usury laws as now or hereafter construed by courts of
appropriate jurisdiction. It is further agreed, without limitation of the
foregoing, that all calculations of the rate of interest contracted for, charged
or received under this Guaranty or under such other documents which are made for
the purpose of determining whether such rate exceeds the maximum lawful contract
rate, shall be made, to the extent permitted by such applicable usury laws, by
amortizing, prorating, allocating and spreading in equal parts during the full
term of this Guaranty, all interest at any time contracted for, charged or
received from Guarantor or otherwise by Banks in connection with this Guaranty.

                                       6
<PAGE>   111

         21. In case any of the provisions of this Guaranty shall for any reason
be held to be invalid, illegal, or unenforceable, such invalidity, illegality,
or unenforceability shall not affect any other provision hereof, and this
Guaranty shall be construed as if such invalid, illegal, or unenforceable
provision had never been contained herein.

         22. In all instances herein, the singular shall be construed to include
the plural and the masculine to include the feminine.

         23. THIS GUARANTY SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS, WITHOUT REGARD TO CONFLICT OF
LAW PRINCIPLES, AND THE APPLICABLE LAWS OF THE UNITED STATES OF AMERICA.

         24. To the extent permitted by applicable law, all actions or
proceedings with respect to the Guaranteed Indebtedness or this Guaranty may be
instituted in the Courts of the State of Texas located in Harris County, Texas,
or in the United States District Court for the Southern District of Texas, and
by execution and delivery of this Guaranty, to the extent permitted by
applicable law, Guarantor irrevocably and unconditionally (a) submits to the
non-exclusive jurisdiction (both subject matter and personal) of each such
court, and (b) waives (i) any objection Guarantor may now or hereafter have to
the laying of venue in any such courts and (ii) any claim that any action or
proceeding brought in any of such courts has been brought in an inconvenient
forum.

         25. Guarantor acknowledges and agrees that (a) Borrower has executed
and delivered a Revolving Loan Note to each Bank, which evidences a portion of
the Guaranteed Indebtedness, and (b) Guarantor is primarily, and not
secondarily, obligated to each Bank for payment of the Guaranteed Indebtedness
evidenced thereby.

         26. This Guaranty and the other Credit Documents supersede all other
prior understandings and agreements, whether written or not, between Guarantor
and the beneficiaries hereof relating specifically to the agreements contained
herein and therein and the transactions contemplated thereby.

         27. THIS GUARANTY CONSTITUTES A WRITTEN "LOAN AGREEMENT" AS DEFINED IN
SECTION 26.02 OF THE TEXAS BUSINESS AND COMMERCE CODE. THIS WRITTEN LOAN
AGREEMENT REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE
CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS
OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

         28. This Guaranty and each other Subsidiary Guaranty executed by any
Subsidiary of Borrower pursuant to the Loan Agreement (this Guaranty and such
other

                                       7
<PAGE>   112

Subsidiary Guaranties, as may be supplemented from time to time pursuant to
Joinder Agreements, being hereinafter collectively referred to as the
"SUBSIDIARY GUARANTY AGREEMENTS" and each Guarantor hereunder and each such
other guaranteeing Subsidiary of Borrower being hereinafter collectively
referred to as the "SUBSIDIARY GUARANTORS") is executed by each Subsidiary
Guarantor on a joint and several basis with each other Subsidiary Guarantor,
and, notwithstanding anything to the apparent contrary in any Subsidiary
Guaranty Agreement, all representations, warranties, agreements and covenants
made by the Subsidiary Guarantors in the respective Subsidiary Guaranty
Agreements are made jointly and severally for all purposes.

         29. Notwithstanding anything herein to the contrary, or any
representation made by Guarantor in Section 14, the obligations of each
Guarantor hereunder shall be limited to an aggregate amount equal to the largest
amount that would not render its obligations hereunder subject to avoidance
under Section 548 of the United States Bankruptcy Code or any comparable
provisions of any applicable state law.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       8
<PAGE>   113

              EXECUTED as of the ____ day of _______________, 2000.

                                 EGL EAGLE GLOBAL LOGISTICS, LP, a
                                 Delaware limited partnership

                                    By:  EAGLE USA AIRFREIGHT, INC., a
                                         Texas corporation, its general partner

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

                                 EGL DELAWARE LIMITED LIABILITY
                                 COMPANY, a [____________] limited liability
                                 company

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

                                 EGL Management, LLC, a [____________]
                                 company

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

                                 EAGLE FREIGHT SERVICES, INC., a Texas
                                 corporation

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

                                 EAGLE FREIGHT SERVICES, INC., a
                                 California corporation

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

                                        9

<PAGE>   114

                                 EAGLE USA TRANSPORTATION SERVICES,
                                 INC., a Texas corporation

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

                                 EAGLE MARITIME SERVICES, INC., a Texas
                                 corporation

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

                                 FREIGHT SERVICES MANAGEMENT, INC.,
                                 a Texas corporation

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

                                 EAGLE USA IMPORT BROKERS, INC., a
                                 Texas corporation

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

                                 EAGLE URBAN RENEWAL CORPORATION,
                                 a New Jersey Urban Renewal Entity

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

                                 EAGLE INTERNATIONAL HOLDINGS, INC.,
                                 a Delaware corporation

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

                                       10

<PAGE>   115

                                 EAGLE AIRCRAFT SALES &
                                 MANAGEMENT, INC., a Texas corporation

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

                                 EAGLE PARTNERS, LP, a ________ limited
                                 partnership

                                     By: EAGLE USA AIRFREIGHT, INC., a
                                         Texas corporation, its general partner

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

                                 EUSA PARTNERS, INC., a Delaware
                                 corporation

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

                                 EUSA HOLDINGS, INC., a Delaware
                                 corporation

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

                                 Address:         15350 Vickery Drive
                                                  Houston, Texas 77032

ACKNOWLEDGED AND AGREED TO:

BANK OF AMERICA, N.A., as Administrative
Agent on behalf of itself and the other
Banks, as Swing Line Lender, and as
Issuing Bank

By:
   -------------------------------
   [                          ],
    --------------------------
   [                          ]
    --------------------------

                                       11
<PAGE>   116
                                   Schedule I

                               NOTICE INFORMATION

1.       Eagle USA Airfreight, Inc.

         15350 Vickery Drive
         Houston, Texas 77032
         Attention: Douglas A. Seckel
         Telephone No: (281) 618-3420
         Telecopy No.:  (281) 618-3429

2.       Bank of America, N.A.

         Domestic Lending Office:
         Eurodollar Lending Office:

         700 Louisiana
         7th Floor
         Houston, Texas 77002
         Attention: William B. Borus
         Telephone No.: (713) 247-7756
         Telecopy No.:   (713) 247-7748<PAGE>

                                                                    Exhibit 10.1
                                                                    ------------

February 10, 2000

Mr. Donald L. Drakeman
President and Chief Executive Officer
Medarex, Inc.
707 State Road 206, Suite 206
Princeton, N.J. 08540

                             RE:  Letter of Intent
                                  ----------------

Dear Don:

I.   Introduction
     ------------

Per our recent discussions, this document will serve as a legally binding and
fully enforceable Letter of Intent ("Letter") between Eos Biotechnology, Inc., a
corporation organized and existing under the laws of the State of Delaware,
having its principal offices at 225A Gateway Boulevard, South San Francisco,
California, 94080, and Medarex, Inc., a New Jersey corporation having its
principal offices at 707 State Road 206, Princeton, NJ, 08540.

Medarex, Inc., ("Medarex") is the sole and exclusive owner of certain transgenic
mice useful for the preparation of fully human monoclonal antibodies.  Medarex
and Eos Biotechnology, Inc. ("Eos") entered into a Research and
Commercialization Agreement effective August 2, 1999 under which Eos makes
periodic payments to Medarex in exchange for access to such antibodies.  Such
payments take the form of Immunization Fees, Evaluation Period Extension Fees,
Commercial License Fees, Milestone Payments and Royalties.  The Parties are also
currently negotiating the Amended and Restated Research and Commercialization
Agreement (the "Prior Agreement).

The Purpose of the Letter is to state the Parties' intention and understanding
with respect to entering into a more extensive collaboration in which they will
share earnings and expenses associated with certain products in certain fields,
to the extent that such products reach a certain stage in their development.
This Letter outlines generally the agreed upon areas of cooperation and the
framework for definitive agreements; this Letter is not intended to contain an
all-inclusive list of the terms of such definitive agreements.
<PAGE>

Other product candidates will be commercially developed by Eos and/or a large
pharmaceutical or biotechnology development collaborator to which Eos may
license a significant portion of the remaining Eos generated Product Candidates,
with remuneration to Medarex as set forth in the Prior Agreement, subject to
Section III I 2 thereof.  In each instance, the ownership of intellectual
property shall be as set forth in the Prior Agreement if it is executed.

The Parties intend to be legally bound by both the business and legal terms of
this Letter, and in consideration of the mutual covenants set forth herein,
hereby agree to the provisions set forth below. This Letter shall remain in full
force and effect unless and until superseded by the execution and delivery of
such definitive agreements as may be necessary to establish the alliances and
arrangements intended by the Parties as set forth in this Letter, or until
otherwise terminated consistent with the provisions contained herein.

II.  Definitions:
     -----------

"Alliance" means the collaboration to share rights, interests and obligations
exclusive of intellectual property between Medarex and Eos pursuant to the terms
embodied in this Letter.

"First Field" [*****].

"Follow-on Product Candidate" [*****].

"Follow-on Product Opportunity" means any proposal to generate a Follow-on
Product Candidate.

"Party" means either Medarex or Eos or if plural, both Medarex and Eos.

"Pharmaceutical Collaborator" means a pharmaceutical or biotechnology company
with which Eos contracts to provide certain rights to license Product Candidates
in the First Field.

"Product Candidate" means a fully human therapeutic antibody (or portion
thereof) that has completed its first Successful Phase IIa Clinical Trial.

"Reversion Product" means a Product Candidate in the First Field that has been
rejected for licensing by the Pharmaceutical Collaborator.

"Selection"or "Select" [*****].

"Selection Period" means the five year period commencing upon the completion
date of the first Successful Phase IIa Clinical Trial for the first Product
Candidate, and any extensions thereof, during which time the Alliance shall have
the ability to Select the offered Product Candidates (as provided below) as
Shared Products.

-----------------
Confidential treatment has been requested for portions of this exhibit. The copy
filed herewith omits the information subject to the confidentiality request.
Omissions are designated as "[*****]".

                                      -2-
<PAGE>

"Shared Products" means all Selected Product Candidates and all Reversion
Products and Follow-on Product Candidates that are accepted by the Alliance for
development and commercialization by the Alliance.

"Successful Phase IIa Clinical Trial" means a clinical study that provides
sufficient evidence of validity of a therapeutic concept and adequate safety in
a patient population to reasonably support further investigation of the safety
and efficacy of the therapeutic candidate in further clinical studies. A Phase
IIa trial may include fewer than 100 patients.

III. Key Business Terms:
     ------------------

A.   Product Sharing.  Medarex and Eos will share equally (50:50) all Shared
     ---------------
Product rights, interests and obligations of the Alliance contemplated by this
Letter.  The Alliance shall have the right to Select no fewer than six (6) and
no more than nine (9) Shared Products, and in addition the Alliance shall have
rights to [*****].  Eos agrees to use commercially reasonable efforts to offer
to the Alliance a sufficient number of Product Candidates such that the Alliance
can Select as a minimum six (6), or if greater the same number of Product
Candidates in the First Field Selected by the Pharmaceutical Collaborator and/or
Eos but not more than a total of nine (9).

B.   Selection Process for Shared Products in the First Field.  [*****]
     --------------------------------------------------------

C.   Disposition of Product Candidates.  If the Alliance rejects a Product
     ---------------------------------
Candidate because Medarex refuses to accept that Product Candidate as a Shared
Product, the Product Candidate will remain the property of Eos and Medarex will
not have any buy-back or other rights thereto.

D.   Rights to Follow-on Product Candidates. By accepting a Product Candidate as
     --------------------------------------
a Shared Product, the Alliance receives from Eos and Medarex exclusive rights to
be offered any and all Follow-on Product Candidates for Shared Products.

E.   Presentation of Follow-on Product Opportunities.  [*****]
     -----------------------------------------------

3.   The Parties may mutually agree NOT to pursue a Follow-on Product
     Opportunity.  In such event, the Follow-on Product Opportunity proposal
     will be deemed not to have been made and if revived, must be presented
     again to the Alliance.

4.   If the development team cannot agree within the applicable thirty day
     period to pursue a particular Follow-on Product Opportunity, and one Party
     (the Affirmative Party) wishes to proceed with research and development
     work on such Follow-on Product Opportunity, the Affirmative Party may
     decide to pursue the Follow-on Product Opportunity without the
     participation of the other Party (the Declining Party).  [*****]

-----------------
Confidential treatment has been requested for portions of this exhibit. The copy
filed herewith omits the information subject to the confidentiality request.
Omissions are designated as "[*****]".

                                      -3-
<PAGE>

     i)   Follow-on Product Opportunities Utilizing Proprietary Technology.
          Should the Follow-on Product Opportunity and resulting Follow-on
          Product Candidate utilize technology for which the Declining Party and
          not the Affirmative Party has proprietary rights, the Parties will,
          prior to the initiation of research and development activities,
          negotiate in good faith commercially reasonable milestone and royalty
          rates to be paid to the Declining Party for such Follow-on Product
          Candidate. [*****]

     ii)  Follow-on Product Opportunities Not Utilizing Proprietary Technology.
          Should the Affirmative Party pursuing alone the Follow-on Product
          Opportunity and Follow-on Product Candidate NOT need to license
          proprietary technology from the Declining Party, that Affirmative
          Party will pay to the Declining Party the following milestones and
          royalties:

          [*****]

F.   Rights to Product Candidates outside the First Field.  [*****]
     ----------------------------------------------------

G.   Alliance Management and Decision-Making.
     ---------------------------------------

     1.   Development Team.  The Alliance will include a development team
          ----------------
consisting of two representatives from each Party [*****].  The development Team
will be responsible for planning and decisions regarding Shared Products and
Follow-on Product Candidates. Either Party may change any or all of its
respective development team representatives upon 30-days written notice to the
other Party.  All decisions of the development team will be unanimous.

     2.   Resolution of Development Team Disputes.  In the event the development
          ---------------------------------------
team cannot achieve unanimity within a reasonable period of time to be
negotiated by the Parties, the CEOs will mutually agree upon the proper course
of action.  [*****]

H.   Buy-back Rights for Declined Shared Products.  [*****]
     --------------------------------------------

I.   Manufacturing of Product Candidates.  [*****]
     -----------------------------------

J.   Medarex Payments/Credits to Eos.  Medarex will provide Eos with the
     -------------------------------
following consideration:

     1.   $5 million (five million and no/100 dollars) cash due and payable to
          Eos within thirty (30) days of the Closing Date or May 15, 2000,
          whichever is sooner.  This payment shall be a nonrefundable
          contribution to Eos' efforts in developing Product Candidates, and Eos
          will apply such funds towards developing Product Candidates.

-----------------
Confidential treatment has been requested for portions of this exhibit. The copy
filed herewith omits the information subject to the confidentiality request.
Omissions are designated as "[*****]".

                                      -4-
<PAGE>

          Medarex will also, within thirty (30) days of the Closing Date or May
          15, 2000, whichever is sooner, deposit $20 million (twenty million and
          no/100 dollars) in a third party interest-bearing escrow account for
          which account the escrow instructions are attached hereto as Exhibit
          B;

and

     2.   a credit of $75 million which Eos may apply at its discretion against
          any and all commercial license fees, milestone payments and royalties
          that Eos would otherwise owe to Medarex under the Prior Agreement and
          based on the following maximum all-inclusive price schedule:

 [*****]

     K.   Product Development Costs.  Eos will pay [*****].  Internal costs
          -------------------------
incurred by the Parties for agreed upon activities in direct support of
development will be shared equally by the Alliance at actual Fully-Burdened
Costs without an additional mark-up by the Parties.

     L.   Third Party Royalties.  Neither Party shall owe the other any royalty
          ---------------------
payments on the Shared Products other than as described in Section III.E.4 and
III.H.2. The Alliance will bear responsibility for all third party royalties.

     M.   Business Team.  The Alliance will include a business team consisting
          -------------
of equal numbers and at least one member from each Party but not [*****].  The
business team shall be established on or before the date on which the first
Product Candidate becomes a Shared Product. The business team will be
responsible for a business plan for the commercialization of each Shared
Product, including determining whether, when and with what limitations  a Shared
Product should be out-licensed.   Each business plan shall include plans (if
applicable) for the marketing of the applicable Shared Products by the Parties
in particular territories, either jointly (as a co-promotion), or by one Party
as the "lead" marketing Party, and/or the out-licensing of development and
marketing rights in specific geographical territories (for example: Asia or
Europe) in exchange for the licensee's payment of up-front fees, milestones,
future development costs in both the licensed territory and North America, and
royalties on net sales in the territory, all payable to the Alliance. All such
licensing revenues shall be revenues of the Alliance to be shared equally by the
Parties. For marketing of Shared Products by the Parties, the costs of such
marketing shall be Alliance costs and the revenues of such marketing shall be
Alliance revenues, each to be shared equally by the Parties.  It is understood
that in no event would the Parties "co-market" any particular Shared Product in
any country.

     N.   First Right of Offer for European Development & Marketing Rights.
          ----------------------------------------------------------------
During the first ninety (90) days after the Selection by the Alliance of a
particular Shared Product, Medarex

-----------------
Confidential treatment has been requested for portions of this exhibit. The copy
filed herewith omits the information subject to the confidentiality request.
Omissions are designated as "[*****]".

                                      -5-
<PAGE>

shall have the right to decide whether it intends to become the exclusive
licensee in the European market for such Shared Product, but provided that
Medarex may so elect up to a maximum of [*****] Shared Products. Such right to
decide, as to each such Shared Product, shall permanently expire after such
ninety (90) days have elapsed, and unless an appropriate license agreement has
been executed within an additional period of sixty (60) days, Medarex rights to
become such licensee will expire. Should Medarex exercise this right, the
Parties will negotiate the terms of such license in good faith and such license
shall be appended to the definitive agreements. The subject license shall in any
event include the following terms:

 [*****]

     O.   Co-Promotion Rights of the Parties.  If at any time a Party decides
          ----------------------------------
that it wishes to sublicense its rights to co-promote a Shared Product in a
given market, the other Party will have the right of first negotiation to obtain
full marketing rights to such Shared Product. If the Parties cannot agree on
terms within ninety (90) days, then the Party desiring to sublicense its co-
promotion rights may do so, however, the terms of such sublicense may not be
more attractive to a third party than the best offered to the other Party.

     P.   Monitoring of Eos Productivity.  [*****]
          ------------------------------

     Q.   Nature of the Alliance.  Prior to the acceptance of the first Shared
          ----------------------
Product, the Alliance will create the appropriate structure (if any) to optimize
the tax benefits to the Parties.

IV.  LEGAL TERMS
     -----------

     A.   Implementation; Conditions to Closing.  The consummation of the
          -------------------------------------
transactions intended by the Parties as set forth in this Letter will require
the negotiation, drafting, execution and delivery of the definitive agreements
containing the terms set forth herein and such other terms, conditions,
covenants, due diligence obligations, representations, warranties and
indemnities as are reasonable and customarily included in agreements relating to
similar transactions or are necessary given the particular business needs of
either or both of the Parties.  It is contemplated that the Parties will sign
the definitive agreements on or before April 15, 2000 (the "Closing Date").

     It is further understood that the ability of the Parties to enter into the
definitive agreements will be subject to: 1) the prior approval of the
definitive agreement(s) by the senior management or board of directors, as
appropriate, of Medarex; 2) the prior approval of the definitive agreement(s) by
the senior management or board of directors, as appropriate, of Eos; 3) the
completion of the Parties' review of the legal, financial, accounting and tax
implications of the structure of the transactions contemplated by this Letter,
and the satisfaction of the Parties with the results thereof; 4) the completion
of necessary and appropriate due diligence; 5) the consummation of a secondary

-----------------
Confidential treatment has been requested for portions of this exhibit. The copy
filed herewith omits the information subject to the confidentiality request.
Omissions are designated as "[*****]".

                                      -6-
<PAGE>

financing by Medarex raising a minimum of $50 million; 6) obtaining any
necessary legal or other regulatory approvals.

     B.   Due Diligence.  A list of information to be made available during the
          -------------
due diligence process will be established jointly by the Parties.  The Parties
will likewise agree on the logistics of the due diligence process.

     C.   Expenses.  Each Party will bear its own expenses in connection with
          --------
the negotiation, drafting, execution and delivery of the definitive agreement(s)
contemplated by this Letter.

     D.   Termination.   This Letter may be terminated at any time by mutual
          -----------
written agreement of the Parties. This Letter shall automatically terminate and
be of no further force and effect in the event that on or before May 14, 2000,
Medarex has not consummated a financing that raises at least $50 million.  In
addition, if Medarex has not timely performed its payment obligations in Section
III.J.1, Eos may terminate upon written notice.  If this Letter is not
terminated or replaced by definitive agreement(s), it shall remain in full force
and effect pursuant to the terms stated herein and shall be enforceable as the
de facto agreement of the Parties.  Not withstanding the foregoing, the Parties
agree that they shall continue at all times to use diligence and good faith
efforts to negotiate the final definitive agreement(s) until such time the
Parties reach agreement on and enter into such definitive agreement(s).

     E.   Amendment.  This Letter may be modified or amended only by a written
          ---------
document signed by both Parties.

     F.   Public Disclosures.  Neither Party will, without the prior written
          ------------------
consent of the other, issue any press release or make any other public
announcement or statement to any person or entity concerning the existence of
this Letter, except that the Parties may: 1) make disclosures in compliance with
the confidentiality provisions contained in this Letter; 2) disclose to
attorneys, consultants and accountants as needed to obtain advice regarding the
transactions contemplated by this Letter; 3) make disclosures required by
applicable law, 4) disclose to investors, financial advisors and other
individuals as reasonably necessary to obtain additional financing.

     G.   Confidentiality.  For purposes of this Section G, each Party's
          ---------------
officers, affiliates, directors, employees, agents and contractors shall be
referred to as its respective "Representatives."

For purposes of this Letter, "Confidential Information" shall mean all non-
public, confidential, proprietary or trade secret information or material, in
original or copied form, that has been or will be disclosed by one Party to the
other, either orally or in writing, during the negotiation of the definitive
agreements.  The following information shall not be considered Confidential
Information pursuant to this Letter: 1) information which, at the time of
disclosure, is generally available to the public; 2) information which, after
disclosure, becomes available to the public by publication or

                                      -7-
<PAGE>

otherwise, other than by breach of this Agreement by the receiving Party or by
inadvertent disclosure; 3) information that the receiving Party can establish by
competent written evidence was already known to it or was in its possession at
the time of disclosure and was not acquired, directly or indirectly, from the
disclosing Party.

  "Confidential Information" shall be labeled or indicated as such by the
disclosing Party before disclosure to the receiving Party where practicable.  In
the alternative, the disclosing Party may designate previously disclosed
information as "Confidential Information" and thus subject to the protection
afforded by this Letter if, within 30 days of disclosure, the disclosing Party
notifies the receiving Party in writing of such designation.

The Parties agree to hold in strict confidence and to use all reasonable
efforts, in no case less than the efforts exercised by the receiving Party to
protect its own Confidential Information, to maintain the secrecy of any and all
Confidential Information and may not disclose Confidential Information without
the express written consent of the disclosing Party.  Such reasonable efforts
shall include but not be limited to ensuring that only those Representatives as
have a "need to know" such Confidential Information for purposes permitted or
contemplated by this Letter shall have access to the Confidential Information.
The receiving Party shall not use Confidential Information for the receiving
Party's personal gain or for any purpose other than as necessary to the
fulfillment of its rights and obligations under this Letter. The Parties agree
to cause their Representatives to be similarly bound.

The receiving Party may disclose Confidential Information if compelled to do so
by a court or other tribunal of competent jurisdiction, provided that
immediately upon receiving notice that such disclosure may be required,
receiving Party give written notice by facsimile or overnight mail to the
disclosing Party so that the disclosing Party may seek a protective order or
other appropriate remedy from said court or tribunal.  In any event, the
receiving Party shall disclose only that portion of the Confidential Information
that, in the opinion of legal counsel, is legally required to be disclosed.
Receiving Party shall also exercise reasonable efforts to obtain assurance that
confidential treatment will be afforded Confidential Information revealed in
such a context.

The obligations set forth in this section G shall survive the termination of
this Letter for a period of ten (10) years after the date of such termination

Within thirty (30) days of the termination of this Letter, the receiving Party
shall (and shall cause its Representatives to) return to the disclosing Party or
destroy all documents and tangible items that contain or refer to Confidential
Information, except that receiving Party may retain one copy of each document in
its Legal Department files solely to permit compliance with obligations under
this Letter or for use in any pending legal proceeding to which such document
relates.

                                      -8-
<PAGE>

     H.   Governing Law.  This Letter and the definitive agreements executed in
          -------------
connection with it shall be governed by the laws of the State of California,
without giving effect to its conflict of laws rules and regulations.

     I.   Assignment.  Neither Party may assign its rights or obligations under
          ----------
this Letter or the definitive agreements absent the prior written consent of the
other Party.

     J.   Exclusivity.  Each Party agrees not to negotiate with or entertain
          -----------
negotiations from other Parties while this Letter is in effect, to the extent
that such negotiations would conflict with those contemplated by this Letter.

     K.   Entire agreement.  Upon execution and delivery of the definitive
          ----------------
agreements, the terms and conditions thereof shall constitute the entire
agreement of the Parties with respect to the subject matter of this Letter.
The definitive agreements shall supersede the Letter and any and all previous
agreements between the Parties, whether written or oral, with the exception of
the Research and Commercialization Agreement effective August 2, 1999, and the
Amended and Restated Research and Commercialization Agreement currently being
negotiated between the Parties to the extent that it is ultimately executed into
full force and effect.

     L.     [*****]

Enclosed are two originals of this binding Letter of Intent.  If the terms of
this Letter are agreeable to Medarex, please execute both originals and return
one to me at the above address.

                              Sincerely,

                              /s/David W. Martin, Jr.

                              David W. Martin, M.D.
                              President and Chief Executive Officer

Accepted by:

/s/Donald L. Drakeman
---------------------

Donald L. Drakeman (Name)
------------------

President & CEO (Title)
---------------

February 10, 2000 (Date)
-----------------

-----------------
Confidential treatment has been requested for portions of this exhibit. The copy
filed herewith omits the information subject to the confidentiality request.
Omissions are designated as "[*****]".

                                      -9-
<PAGE>

                                   Exhibit A

                                   TERM SHEET
                                   ----------

[*****]

-----------------
Confidential treatment has been requested for portions of this exhibit. The copy
filed herewith omits the information subject to the confidentiality request.
Omissions are designated as "[*****]".

                                      -10-
<PAGE>

                                   EXHIBIT B

                              ESCROW INSTRUCTIONS

[*****]

-----------------
Confidential treatment has been requested for portions of this exhibit. The copy
filed herewith omits the information subject to the confidentiality request.
Omissions are designated as "[*****]".

                                      -11-

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