Document:

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                                                                    EXHIBIT 10.1

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                                CREDIT AGREEMENT

                                  by and among

                       SENSORMATIC ELECTRONICS CORPORATION
                                       AND
                           THE BORROWING SUBSIDIARIES,
                                  as Borrowers,

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

                       SUNTRUST BANK, SOUTH FLORIDA, N.A.,
                              as Syndication Agent

                                       and

                                 BANK ONE, N.A.,
                             as Documentation Agent

                                       and

                   THE LENDERS PARTY HERETO FROM TIME TO TIME

                                December 9, 1999

================================================================================

                         BANC OF AMERICA SECURITIES LLC,
                   as Sole Lead Arranger and Sole Book Manager

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                                TABLE OF CONTENTS

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                                                      ARTICLE I

                                                Definitions and Terms

         1.1      Definitions.....................................................................................2
         1.2      Rules of Interpretation........................................................................27
         1.3      Accounting Principles..........................................................................28

                                                     ARTICLE II

                                                The Credit Facilities

         2.1      Revolving Loans................................................................................29
         2.2      Competitive Bid Loans..........................................................................35
         2.3      Use of Proceeds................................................................................40
         2.4      Notes..........................................................................................40
         2.5      Swing Line.....................................................................................41
         2.6      Termination of Total Commitment; Change in Control.............................................42
         2.7      Designation of Borrowing Subsidiaries..........................................................43

                                                     ARTICLE III

                                                  Letters of Credit

         3.1      Letters of Credit..............................................................................44
         3.2      Reimbursement and Participations...............................................................45

                                                     ARTICLE IV

                                  Eurodollar Funding, Fees, and Payment Conventions

         4.1      Interest Rate Options..........................................................................49
         4.2      Conversions and Elections of Subsequent Interest Periods.......................................49
         4.3      Payment of Interest............................................................................50
         4.4      Prepayments of Eurodollar Rate Loans and Competitive Bid Loans.................................50
         4.5      Manner of Payment..............................................................................51
         4.6      Fees...........................................................................................51
         4.7      Pro Rata Payments..............................................................................52
         4.8      Computation of Rates and Fees..................................................................52
         4.9      Deficiency Advances; Failure to Purchase Participations........................................52
         4.10     Intraday Funding...............................................................................53
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<S>               <C>                                                                                            <C>
                                                      ARTICLE V

                                              Change in Circumstances

         5.1      Increased Cost and Reduced Return..............................................................55
         5.2      Limitation on Types of Loans...................................................................56
         5.3      Illegality.....................................................................................57
         5.4      Treatment of Affected Loans....................................................................57
         5.5      Compensation...................................................................................58
         5.6      Taxes..........................................................................................58
         5.7      Replacement Lenders............................................................................60

                                                     ARTICLE VI

                              Conditions to Making Loans and Issuing Letters of Credit

         6.1      Conditions of Initial Advance and Issuing Letters of Credit....................................62
         6.2      Conditions of Revolving Loans and Letter of Credit.............................................64

                                                     ARTICLE VII

                                           Representations and Warranties

         7.1      Organization and Authority.....................................................................66
         7.2      Loan Documents.................................................................................66
         7.3      Solvency.......................................................................................67
         7.4      Subsidiaries and Stockholders..................................................................67
         7.5      Ownership Interests............................................................................67
         7.6      Financial Condition............................................................................67
         7.7      Title to Properties............................................................................68
         7.8      Taxes..........................................................................................68
         7.9      Other Agreements...............................................................................68
         7.10     Litigation.....................................................................................68
         7.11     Margin Stock...................................................................................69
         7.12     Investment Company.............................................................................69
         7.13     Patents, Etc...................................................................................69
         7.14     No Untrue Statement............................................................................69
         7.15     No Consents, Etc...............................................................................70
         7.16     Employee Benefit Plans.........................................................................70
         7.17     No Default.....................................................................................71
         7.18     Environmental Laws.............................................................................71
         7.19     Employment Matters.............................................................................72
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<S>               <C>                                                                                            <C>
         7.20     RICO...........................................................................................72
         7.21     Year 2000 Compliance...........................................................................72

                                                    ARTICLE VIII

                                               Affirmative Covenants

         8.1      Financial Reports, Etc.........................................................................73
         8.2      Maintain Properties............................................................................74
         8.3      Existence, Qualification, Etc..................................................................74
         8.4      Regulations and Taxes..........................................................................74
         8.5      Insurance......................................................................................75
         8.6      True Books.....................................................................................75
         8.7      Year 2000 Compliance...........................................................................75
         8.8      Right of Inspection............................................................................75
         8.9      Observe all Laws...............................................................................75
         8.10     Governmental Licenses..........................................................................76
         8.11     Covenants Extending to Other Persons...........................................................76
         8.12     Officer's Knowledge of Default.................................................................76
         8.13     Suits or Other Proceedings.....................................................................76
         8.14     Notice of Environmental Complaint or Condition.................................................76
         8.15     Environmental Compliance.......................................................................76
         8.16     Indemnification................................................................................77
         8.17     Further Assurances.............................................................................77
         8.18     Employee Benefit Plans.........................................................................77
         8.19     Continued Operations...........................................................................78

                                                     ARTICLE IX

                                                 Negative Covenants

         9.1      Financial Covenants............................................................................79
         9.2      Acquisitions...................................................................................79
         9.3      Liens..........................................................................................80
         9.4      Restricted Payments............................................................................81
         9.5      Merger or Consolidation........................................................................81
         9.6      Sale of Assets.................................................................................82
         9.7      Transactions with Affiliates...................................................................82
         9.8      Sale and Leaseback.............................................................................82
         9.9      Subordinated Debt and Senior Notes.............................................................83
         9.10     Indebtedness...................................................................................83
         9.11     Compliance with ERISA, the Code and Foreign Benefit Laws.......................................84
         9.12     Fiscal Year....................................................................................85

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<S>               <C>                                                                                            <C>
         9.13.    Dissolution, etc.............................................................................. 85
         9.14.    Rate Hedging Obligations.......................................................................85
         9.15.    Negative Pledge Clauses........................................................................85
         9.16.    Restrictions on Investments....................................................................85

                                                      ARTICLE X

                                         Events of Default and Acceleration

         10.1     Events of Default..............................................................................87
         10.2     Administrative Agent to Act....................................................................90
         10.3     Cumulative Rights..............................................................................90
         10.4     No Waiver......................................................................................90
         10.5     Allocation of Proceeds.........................................................................90

                                                     ARTICLE XI

                                              The Administrative Agent

         11.1     Appointment, Powers, and Immunities............................................................92
         11.2     Reliance by Administrative Agent...............................................................92
         11.3     Defaults.......................................................................................93
         11.4     Rights as Lender...............................................................................93
         11.5     Indemnification................................................................................93
         11.6     Non-Reliance on Administrative Agent and Other Lenders.........................................94
         11.7     Resignation of Administrative Agent............................................................94
         11.8     Other Agents...................................................................................94

                                                     ARTICLE XII

                                                   Miscellaneous

         12.1     Assignments and Participations.................................................................95
         12.2     Notices........................................................................................97
         12.3     Right of Set-off; Adjustments..................................................................98
         12.4     Survival.......................................................................................98
         12.5     Expenses.......................................................................................98
         12.6     Amendments and Waivers.........................................................................99
         12.7     Counterparts; Facsimile Signatures.............................................................99
         12.8     Termination...................................................................................100
         12.9     Indemnification; Limitation of Liability......................................................100
         12.10    Severability..................................................................................101
         12.11    Entire Agreement..............................................................................101
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<S>                                                                                                                <C>

         12.12    Agreement Controls...............................................................................101
         12.13    Usury Savings Clause.............................................................................101
         12.14    Confidentiality..................................................................................102
         12.15    GOVERNING LAW; WAIVER OF JURY TRIAL..............................................................103

         EXHIBIT A        Applicable Commitment Percentages........................................................A-1
         EXHIBIT B        Form of Assignment and Acceptance........................................................B-1
         EXHIBIT C        Notice of Appointment (or Revocation) of Authorized Representative.......................C-1
         EXHIBIT D-1      Form of Borrowing Notice...............................................................D-1-1
         EXHIBIT D-2      Form of Borrowing Notice--Swing Line Loans.............................................D-2-1
         EXHIBIT E        Form of Interest Rate Selection Notice...................................................E-1
         EXHIBIT F-1      Form of Competitive Bid Note...........................................................F-1-1
         EXHIBIT F-2      Form of Revolving Note.................................................................F-2-1
         EXHIBIT F-3      Form of Swing Line Note................................................................F-3-1
         EXHIBIT G        Form of Competitive Bid Quote Request....................................................G-1
         EXHIBIT H        Form of Competitive Bid Quote............................................................H-1
         EXHIBIT I        Subordination Provisions.................................................................I-1
         EXHIBIT J        Form of Opinion of Borrower's Counsel....................................................J-1
         EXHIBIT K        Compliance Certificate...................................................................K-1
         EXHIBIT L        Form of Assumption Letter................................................................L-1
         EXHIBIT M        Form of Amendment Agreement..............................................................M-1

         Schedule 1.1(a)  Existing Letters of Credit...............................................................S-1
         Schedule 1.1(b)  Pricing Grid.............................................................................S-2
         Schedule 7.4     Subsidiaries and Investments in Other Persons............................................S-3
         Schedule 7.6     Indebtedness.............................................................................S-4
         Schedule 7.7     Liens....................................................................................S-5
         Schedule 7.8     Tax Matters..............................................................................S-6

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                                CREDIT AGREEMENT

         THIS CREDIT AGREEMENT, dated as of December 9, 1999 (the "Agreement"),
is made by and among SENSORMATIC ELECTRONICS CORPORATION, a Delaware corporation
having its principal place of business at 951 Yamato Road, Boca Raton, Florida
(the "Parent"), the BORROWING SUBSIDIARIES parties hereto pursuant to SECTION
2.7 herein (the Parent and each Borrowing Subsidiary is individually referred to
as a "Borrower" and collectively as the "Borrowers"), BANK OF AMERICA, N.A., a
national banking association organized and existing under the laws of the United
States, in its capacity as a Lender ("Bank of America"), and each other
financial institution executing and delivering a signature page hereto and each
other financial institution which may hereafter execute and deliver an
instrument of assignment with respect to this Agreement pursuant to SECTION 12.1
(hereinafter such financial institutions may be referred to individually as a
"Lender" or collectively as the "Lenders"), and BANK OF AMERICA, N.A., a
national banking association organized and existing under the laws of the United
States, in its capacity as administrative agent for the Lenders (in such
capacity, and together with any successor agent appointed in accordance with the
terms of SECTION 11.7, the "Administrative Agent");

                              W I T N E S S E T H:

         WHEREAS, the Borrowers have requested that the Lenders make available
to the Borrowers a revolving credit facility of up to $125,000,000, the proceeds
of which are to be used for working capital, capital expenditures and general
corporate purposes, including acquisitions and to repay certain existing
indebtedness and which shall include (i) a letter of credit facility of up to
$50,000,000 for the issuance of standby letters of credit, (ii) a swing line
facility of up to $10,000,000 and (iii) a $25,000,000 multi-currency facility;
and

         WHEREAS, the Lenders party hereto are willing to make available to the
Borrowers a revolving credit facility of up to $115,000,000 which includes a
letter of credit facility of up to $50,000,000, a swing line facility of up to
$10,000,000 and a $25,000,000 multi-currency facility upon the terms and
conditions set forth herein and each Lender hereby agrees that the revolving
credit facility may be increased to $125,000,000 at any time so long as no
Default or Event of Default exists without further action or approval of the
Lenders;

         NOW, THEREFORE, the Borrowers, the Lenders and the Administrative Agent
hereby agree as follows:

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                                    ARTICLE I

                             DEFINITIONS AND TERMS

1.1 Definitions. For the purposes of this Agreement, in addition to the
definitions set forth above, the following terms shall have the respective
meanings set forth below:

         "Absolute Rate" has the meaning assigned to such term in SECTION
2.2(c)(ii)(C) hereof.

         "Absolute Rate Loan" means any Loan for which the rate of interest is
determined by reference to the Absolute Rate.

                  "Acquisition" means the acquisition of (i) a majority equity
         interest in another Person (including the purchase of an option,
         warrant or convertible or similar type security to acquire such a
         majority interest at the time it becomes exercisable by the holder
         thereof), whether by purchase of such equity interest or upon exercise
         of an option or warrant for, or conversion of securities into, such
         equity interest, or (ii) assets of another Person which constitute all
         or any material part of the assets of such Person or of a Line or Lines
         of Business conducted by such Person.

                  "Advance" means any of a borrowing under (i) the Revolving
         Credit Facility consisting of a Base Rate Loan or a Eurodollar Rate
         Loan, (ii) the Swing Line consisting of a Base Rate Loan or (iii) the
         Competitive Bid Facility consisting of Competitive Bid Loans.

                  "Advance Day Exchange Rate" means, with respect to a specified
         Advance or Loan of an Alternative Currency, the Spot Rate of Exchange
         as of the date two Business Days preceding the date such Advance is
         originally made, PROVIDED that, if such Advance or Loan is continued
         for a subsequent Interest Period pursuant to SECTIONS 2.1(b) and 4.2
         the Advance Day Exchange Rate with respect to such Loan shall be the
         Spot Rate of Exchange two Business Days preceding the effective date of
         the latest Continuation or Conversion of such Advance or Loan; and the
         Dollar Value of such Advance or Loan shall be adjusted as set forth in
         SECTION 2.1(c); PROVIDED, further, that in the case of a drawing under
         a Letter of Credit issued in an Alternative Currency, the Spot Rate of
         Exchange shall be as of the date of such drawing.

                  "Affiliate" means any Person (i) which directly or indirectly
         through one or more intermediaries controls, or is controlled by, or is
         under common control with the Parent; or (ii) which beneficially owns
         or holds 5% or more of any class of the outstanding voting stock (or in
         the case of a Person which is not a corporation, 5% or more of the
         equity interest) of the Parent; or 5% or more of any class of the
         outstanding voting stock (or in the case of a Person which is not a
         corporation, 5% or more of the equity interest) of which is
         beneficially owned or held by the Parent; PROVIDED, that no Person
         shall be deemed to be an Affiliate of any Person solely by virtue of
         being an officer, director or employee of such Person.

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                  "Alternative Currency" means, with respect to Loans under the
         Revolving Facility, British Pounds and the euro and, with the prior
         written consent of all Lenders and the Administrative Agent, any other
         lawful currency other than Dollars which is freely transferable and
         convertible into Dollars in the United States currency market;
         PROVIDED, however, that an Alternative Currency shall only be available
         to the Borrowers if each Lender shall have access to such Alternative
         Currency on terms reasonably acceptable to such Lender.

                  "Alternative Currency Equivalent Amount" means, with respect
         to a specified Alternative Currency and a specified Dollar amount, the
         amount of such Alternative Currency into which such Dollar amount would
         be converted, based on the applicable Advance Day Exchange Rate.

                  "Alternative Currency Loan" means a Loan made in an
         Alternative Currency.

                  "Applicable Commitment Percentage" means, for each Lender at
         any time, a fraction, with respect to the Revolving Credit Facility and
         the Letter of Credit Facility the numerator of which shall be such
         Lender's Revolving Credit Commitment and the denominator of which shall
         be the Total Revolving Credit Commitment, which Applicable Commitment
         Percentage for each Lender as of the Closing Date is as set forth in
         EXHIBIT A; PROVIDED that the Applicable Commitment Percentage of each
         Lender shall be increased or decreased to reflect (i) the addition of
         one or more Lenders pursuant to SECTION 2.1(f) hereof, (ii) any
         assignments to or by such Lender effected in accordance with SECTION
         12.1 and (iii) any mandatory payment effected in accordance with
         SECTION 2.6.

                  "Applicable Facility Fee" means that number of basis points
         per annum set forth on the Pricing Grid under the heading "Applicable
         Facility Fee" which shall be based upon the Borrower's Rating as set
         forth on the Pricing Grid.

                  "Applicable Lending Office" means, for each Lender and for
         each Type of Loan, the "Lending Office" of such Lender (or of an
         affiliate of such Lender) designated for such Type of Loan on the
         signature pages hereof or such other office of such Lender (or an
         affiliate of such Lender) as such Lender may from time to time specify
         to the Administrative Agent and the Borrower by written notice in
         accordance with the terms hereof as the office by which its Loans of
         such Type are to be made and maintained.

                  "Applicable Margin" means that number of basis points per
         annum set forth on the Pricing Grid under the heading "Applicable
         Eurodollar Margin" for Eurodollar Rate Loans and "Applicable Base Rate
         Margin" for Base Rate Loans which shall be based on the Borrower's
         Rating as set forth on the Pricing Grid plus the Utilization Amount, if
         any.

                  "Applicable Rate" means the Eurodollar Rate applicable to any
         Alternative Currency Loan.

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                  "Applications and Agreements for Letters of Credit" means,
         collectively, the Applications and Agreements for Letters of Credit, or
         similar documentation, executed by one or more of the Borrowers from
         time to time and delivered to the Issuing Bank to support the issuance
         of Letters of Credit.

                  "Assignment and Acceptance" shall mean an Assignment and
         Acceptance in the form of EXHIBIT B (with blanks appropriately filled
         in) delivered to the Administrative Agent in connection with an
         assignment of a Lender's interest under this Agreement pursuant to
         SECTION 12.1.

                  "Associated Costs" means, with respect to Alternative Currency
         Loans in British Pounds, a rate per annum equal to the arithmetic mean
         of the percentage rates applicable to the Applicable Lending Office of
         the relevant Lender according to the following formula:

                           Associated Costs          BY + L(Y-X) + S X 0.01
                           per annum           =     ----------------------
                                                           100 - (B+L)

         where:

         B        =        The percentage of such Lender's eligible liabilities
                           required, on the first day of the Relevant Period, to
                           be held in a non-interest-bearing deposit account
                           with the Bank of England pursuant to the cash ratio
                           requirements of the Bank of England.

         Y        =        The interest rate at which British Pound deposits in
                           an amount comparable to the aggregate principal
                           amount of the relevant Loan are offered by such
                           Lender to leading banks in the London interbank
                           market at or about 11:00 a.m. (London time) on the
                           first day of the Relevant Period for a period
                           comparable to the Relevant Period.

         L        =        The percentage of eligible liabilities which the Bank
                           of England, as at the first day of the Relevant
                           Period, requires such Lender to maintain as interest
                           bearing special deposits with the Bank of England.

         X        =        The rate per annum payable by the Bank of England to
                           the Lender on interest bearing special deposits.

         S        =        The rate payable by the Lender to the Financial
                           Services Authority pursuant to the Fees Regulations
                           (but, for this purpose, the figure at paragraph
                           [2.02b]/[2.03b] of the Fees Regulations shall be
                           deemed to be zero) and expressed in British Pounds
                           per (pound)1,000,000 of the Fee Base of the Lender.

                  (a)      For the purposes of this definition:

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                           (i) "eligible liabilities" and "special deposits"
                  shall have the meanings ascribed to them from time to time by
                  the Bank of England;

                           (ii) "Relevant Period" means, if the Interest Period
                  with respect to the relevant Loan is three months or less, the
                  duration of such Interest Period or, if such Interest Period
                  is longer than three months, each period of three months and
                  any necessary shorter period in such Interest Period;

                           (iii) "Fee Regulations" means the Banking Supervision
                  (Fees) Regulations 1998 or such other regulations as may be in
                  force from time to time in respect of the payment of fees for
                  banking supervision; and

                           (iv) "Fee Base" shall bear the meaning ascribed to
                  it, and shall be calculated in accordance with, the Fees
                  Regulations.

                  (b) In the application of the above formula, B, Y, L, X, S and
         Z will be included in the formula as decimal fractions and not as
         percentages, e.g. if B = 0.5% and Y = 15%, BY will be calculated as 0.5
         x 15 and not as 0.5% x 15%.

                  (c) Associated Costs shall be computed by the applicable
         Lender on the first day of each Relevant Period, and shall, if
         necessary, be rounded upward to the nearest 1/10,000 of 1%. If there is
         more than one Relevant Period comprised in the relevant Interest
         Period, then the Associated Costs for that Interest Period shall be the
         weighted average of the amounts so computed for the Relevant Periods
         comprised in that Interest Period.

                  (d) Calculations will be made on the basis of a year of 365
         days.

                  "Assumption Agreement" has the meaning set forth in SECTION
         2.7.

                  "Authorized Representative" means any of the President or any
         Vice President of the Parent or, with respect to financial matters, the
         chief financial officer of the Parent, or any other Person expressly
         designated by the Board of Directors of the Parent (or the appropriate
         committee thereof) or the Vice President and Treasurer of the Parent as
         an Authorized Representative of the Borrowers, as set forth from time
         to time in a certificate in the form of EXHIBIT C.

                  "Bank of America" means Bank of America, N.A.

                  "BAS" means Banc of America Securities LLC and its successors.

                  "Base Rate" means, for any day, the rate per annum equal to
         the sum of (a) the higher of (i) the Federal Funds Rate for such day
         plus one-half of one percent (0.5%) and (ii) the Prime Rate for such
         day plus (b) the Applicable Margin. Any change in the Base Rate due

                                       5
<PAGE>   12

         to a change in the Prime Rate or the Federal Funds Rate shall be
         effective on the effective date of such change in the Prime Rate or
         Federal Funds Rate.

                  "Base Rate Loan" means a Loan for which the rate of interest
         is determined by reference to the Base Rate.

                  "Base Rate Refunding Loan" means a Base Rate Loan or Swing
         Line Loan made either to (i) satisfy Reimbursement Obligations arising
         from a drawing under a Letter of Credit or (ii) pay Bank of America in
         respect of Swing Line Outstandings.

                  "Board" means the Board of Governors of the Federal Reserve
         System (or any successor body).

                  "Borrowers' Account" means a demand deposit account designated
         by the Borrower or any successor account with the Administrative Agent,
         which may be maintained at one or more offices of the Administrative
         Agent or an agent of the Administrative Agent.

                  "Borrowing Notice" means the notice delivered by an Authorized
         Representative in connection with an Advance under the Revolving Credit
         Facility or a Swing Line, in the forms of EXHIBITS D-1 AND D-2,
         respectively.

                  "Borrowing Subsidiary" means any Subsidiary of the Parent
         which has been designated as a Borrower pursuant to SECTION 2.7.

                  "British Pound" or "(pound)" means the lawful currency of
         England and Wales.

                  "Business Day" means, (i) except as expressly provided in
         clause (ii), any day which is not a Saturday, Sunday or a day on which
         banks in the States of New York and North Carolina are authorized or
         obligated by law, executive order or governmental decree to be closed,
         (ii) with respect to the selection, funding, interest rate, payment,
         and Interest Period of any Eurodollar Rate Loan or any Competitive Bid
         Loan at the Eurodollar Competitive Rate, any day which is a Business
         Day, as described in clause (i) above, and that is also a day for
         trading by and between banks in Dollar deposits in the applicable
         interbank Eurodollar market or in deposits in the Applicable
         Alternative Currency in the United States interbank market, as
         applicable and (iii) with respect to the selection, funding, interest
         rate, payment and Interest Period for any Alternative Currency Loan
         denominated in euros, any day which is a Business Day as described in
         clause (ii) above, and on which TARGET (Trans-European Automated
         Realtime Gross settlement Express Transfer system) or any successor
         thereto is scheduled to be open for business, and (iv) with respect to
         the selection, funding, interest rate, payment and Interest Period for
         any Alternative Currency Loan not denominated in euros, any day which
         is a Business Day as described in clause (ii) above, and on which the
         relevant Funding Bank is open for the transaction of business
         contemplated by this Agreement and on which dealings in the relevant
         Alternative Currency are carried on in the

                                       6
<PAGE>   13

         applicable offshore foreign exchange interbank market in which
         disbursement of or payment in such Alternative Currency will be made or
         received hereunder.

                  "Capital Expenditures" means, with respect to the Parent and
         its Subsidiaries, for any period the SUM of (without duplication) (i)
         all expenditures (whether paid in cash or accrued as liabilities) by
         the Parent or any Subsidiary during such period for items that would be
         classified as "property, plant or equipment" or comparable items on the
         consolidated balance sheet of the Parent and its Subsidiaries,
         including without limitation all transactional costs incurred in
         connection with such expenditures provided the same have been
         capitalized, excluding, however, the amount of any Capital Expenditures
         paid for with proceeds of casualty insurance as evidenced in writing
         and submitted to the Administrative Agent together with any compliance
         certificate delivered pursuant to SECTION 8.1(a) or (b), and (ii) with
         respect to any Capital Lease entered into by the Parent or its
         Subsidiaries during such period, the present value of the lease
         payments due under such Capital Lease over the term of such Capital
         Lease applying a discount rate equal to the interest rate provided in
         such lease (or in the absence of a stated interest rate, that rate used
         in the preparation of the financial statements described in SECTION
         8.1(a)), all the foregoing in accordance with GAAP applied on a
         Consistent Basis.

                  "Capital Leases" means all leases which have been or should be
         capitalized in accordance with GAAP as in effect from time to time
         including Statement No. 13 of the Financial Accounting Standards Board
         and any successor thereof.

                  "Change of Control" means, at any time:

                           (i) any "person" or "group" (each as used in Sections
                  13(d)(3) and 14(d)(2) of the Exchange Act) either (A) becomes
                  the "beneficial owner" (as defined in Rule 13d-3 of the
                  Exchange Act), directly or indirectly, of Voting Securities
                  of the Parent (or securities convertible into or exchangeable
                  for such Voting Securities) representing 30% or more of the
                  combined voting power of all Voting Securities of the Parent
                  (on a fully diluted basis) or (B) otherwise has the ability,
                  directly or indirectly, to elect a majority of the board of
                  directors of the Borrower;

                           (ii) during any period of up to 12 consecutive
                  months, commencing on the Closing Date, individuals who at the
                  beginning of such 12-month period were directors of the Parent
                  shall cease for any reason (other than the death, disability
                  or retirement of an officer of the Parent that is serving as a
                  director at such time so long as another officer of the Parent
                  replaces such Person as a director) to constitute a majority
                  of the board of directors of the Borrower; or

                           (iii) the Parent shall cease to own all of the issued
                  and outstanding Voting Securities of a Borrowing Subsidiary
                  (except for nominal local ownership, if any, required by
                  applicable law) unless the Borrowing Subsidiary shall cease to
                  be a Borrower hereunder and shall have complied with SECTION
                  2.7 hereof.

                                       7
<PAGE>   14

                  "Closing Date" means the date as of which this Agreement is
         executed by the Borrowers, the Lenders and the Administrative Agent and
         on which the conditions set forth in SECTION 6.1 have been satisfied.

                  "Code" means the Internal Revenue Code of 1986, as amended,
         and any regulations promulgated thereunder.

                  "Competitive Bid Borrowing" has the meaning assigned to such
         term in SECTION 2.2 hereof.

                  "Competitive Bid Facility" means the facility described in
         SECTION 2.2 hereof providing for Competitive Bid Loans to the Parent.

                  "Competitive Bid Loan Commitment" means the amount which a
         Lender has offered to loan to the Parent pursuant to a Competitive Bid
         Quote by such Lender, the sum of all Competitive Bid Loans not to
         exceed in the aggregate one hundred percent (100%) of the Total
         Revolving Credit Commitment.

                  "Competitive Bid Loans" means the Loans bearing interest at an
         Absolute Rate or a Eurodollar Competitive Rate provided for in SECTION
         2.2 hereof.

                  "Competitive Bid Notes" means, collectively, the promissory
         notes of the Parent with respect to Competitive Bid Loans provided for
         by SECTION 2.2 hereof and executed and delivered to the Lenders as
         provided in SECTION 2.4 substantially in the form attached hereto as
         EXHIBIT F-1 and incorporated herein by reference, with appropriate
         insertions as to dates and names of Lenders, and all promissory notes
         delivered in substitution or exchange therefor, in each case as the
         same shall be amended, modified or supplemented and in effect from time
         to time.

                  "Competitive Bid Quote" means an offer in accordance with
         SECTION 2.2 hereof by a Lender to make a Competitive Bid Loan with one
         single specified interest rate.

                  "Competitive Bid Quote Request" has the meaning assigned to
         such term in SECTION 2.2 hereof.

                  "Consistent Basis" in reference to the application of GAAP
         means the accounting principles observed in the period referred to are
         comparable in all material respects to those applied in the preparation
         of the audited financial statements of the Parent referred to as of the
         Closing Date in SECTION 7.6(a).

                  "Consolidated EBIT" means, with respect to the Parent and its
         Subsidiaries for any Four-Quarter Period ending on the date of
         computation thereof, the SUM of, without duplication, (i) Consolidated
         Net Income net of interest income, (ii) Consolidated Interest

                                       8
<PAGE>   15

         Expense, and (iii) taxes on income, all determined on a consolidated
         basis in accordance with GAAP applied on a Consistent Basis.

                  "Consolidated Indebtedness" means all Indebtedness of the
         Parent and its Subsidiaries, all determined on a consolidated basis.

                  "Consolidated Interest Expense" means, with respect to any
         period of computation thereof, the gross interest expense of the Parent
         and its Subsidiaries, including without limitation (i) the current
         amortized portion of debt discounts to the extent included in gross
         interest expense, (ii) the current amortized portion of all fees
         (including fees payable in respect of any Rate Hedging Obligations)
         payable in connection with the incurrence of Indebtedness to the extent
         included in gross interest expense, and (iii) the portion of any
         payments made in connection with Capital Leases allocable to interest
         expense, all determined on a consolidated basis in accordance with GAAP
         applied on a Consistent Basis.

                  "Consolidated Interest Coverage Ratio" means the ratio of
         Consolidated EBIT to Consolidated Interest Expense net of interest
         income, if any, for the Four-Quarter Period ending on the date of
         computation thereof.

                  "Consolidated Leverage Ratio" means, as of the date of
         computation thereof, the ratio of (i) Consolidated Indebtedness
         (determined as at such date) to (ii) Consolidated Total Capitalization.

                  "Consolidated Net Income" means, for any period of computation
         thereof, the gross revenues from operations of the Parent and its
         Subsidiaries (including payments received by the Parent and its
         Subsidiaries of (i) interest income, and (ii) dividends and
         distributions made in the ordinary course of their businesses by
         Persons in which investment is permitted pursuant to this Agreement and
         not related to an extraordinary event), less all operating and
         non-operating expenses of the Parent and its Subsidiaries including
         taxes on income, all determined on a consolidated basis in accordance
         with GAAP applied on a Consistent Basis; but excluding (for all
         purposes other than (x) compliance with SECTION 9.1(a) hereof) as
         income: (i) net gains on the sale, conversion or other disposition of
         capital assets, (ii) net gains on the acquisition, retirement, sale or
         other disposition of capital stock and other securities of the Parent
         or its Subsidiaries, (iii) net gains on the collection of proceeds of
         life insurance policies, (iv) any write-up of any asset, and (v) any
         other net gain or credit of an extraordinary nature as determined in
         accordance with GAAP applied on a Consistent Basis; provided, however,
         that for purposes of determining compliance with the provisions of
         SECTION 9.1(a) hereof, there shall be disregarded any increase in
         Consolidated Net Income upon giving effect to any Acquisition which
         results from the treatment of such Acquisition as a "pooling of
         interests."

                  "Consolidated Net Worth" means, as of any date on which the
         amount thereof is to be determined, Consolidated Shareholders' Equity.

                                       9
<PAGE>   16

                  "Consolidated Senior Leverage Ratio" means, as of the date of
         computation thereof, the ratio of (i) Consolidated Indebtedness less
         Subordinated Indebtedness (determined as of such date) to (ii)
         Consolidated Total Capitalization.

                  "Consolidated Shareholders' Equity" means, as of any date on
         which the amount thereof is to be determined, the sum of the following
         in respect of the Parent and its Subsidiaries (determined on a
         consolidated basis and excluding any upward adjustment after the
         Closing Date due to revaluation of assets): (i) the amount of issued
         and outstanding share capital, plus (ii) the amount of additional
         paid-in capital and retained earnings (or, in the case of a deficit,
         minus the amount of such deficit), plus (iii) the amount of any foreign
         currency translation adjustment (if positive, or, if negative, minus
         the amount of such translation adjustment), minus (iv) the amount of
         any treasury stock, all as determined in accordance with GAAP applied
         on a Consistent Basis.

                  "Consolidated Total Assets" means, as of any date on which the
         amount thereof is to be determined, the net book value of all assets of
         the Parent and its Subsidiaries as determined on a consolidated basis
         in accordance with GAAP applied on a Consistent Basis.

                  "Consolidated Total Capitalization" means, as of any date on
         which the amount thereof is to be determined, the sum of Consolidated
         Indebtedness as of such date of determination plus Consolidated
         Shareholders' Equity as of the last day of the most recently ended
         fiscal quarter.

                  "Contingent Obligation" means, as to any Person, any direct or
         indirect liability of that Person with respect to any Indebtedness,
         lease, dividend, guaranty, letter of credit or other obligation, other
         than commercial letters of credit and surety bonds, (each a "PRIMARY
         OBLIGATION") of another Person (the "PRIMARY OBLIGOR"), whether or not
         contingent, (a) to purchase, repurchase or otherwise acquire any such
         primary obligation or any property constituting direct or indirect
         security therefor, or (b) to advance or provide funds (i) for the
         payment or discharge of any such primary obligation, or (ii) to
         maintain working capital or equity capital of the primary obligor in
         respect of any such primary obligation or otherwise to maintain the net
         worth or solvency or any balance sheet item, level of income or
         financial condition of such primary obligor, or (c) to purchase
         property, securities or services primarily for the purpose of assuring
         the owner of any such primary obligation of the ability of the primary
         obligor thereof to make payment of such primary obligation, or (d)
         otherwise to assure or hold harmless the owner of any such primary
         obligation against loss or failure or inability to perform in respect
         thereof including the amount of any recourse arising under an asset
         securitization or a receivables financing other than a recourse
         obligation arising by a breach of representations or warranties
         contained therein. The amount of any Contingent Obligation shall be
         deemed to be an amount equal to the stated or determinable amount of
         the primary obligation in respect of which such Contingent Obligation
         is made or, if not stated or determinable, the maximum reasonably
         anticipated liability in respect thereof. For the purposes of clarity,
         the obligations of the Parent and Sensor SPC Inc. ("SPC") under the
         Purchase and Sale Agreement, dated as of April 16, 1999 (as
         supplemented, amended or

                                       10
<PAGE>   17

         modified from time to time), by and among First Sierra Financial, Inc.
         ("First Sierra"), the Parent and SPC (and any obligations under similar
         arrangements of the Parent and/or any of its Subsidiaries, whether or
         not with First Sierra) shall not be deemed to be Contingent Obligations
         in that the only recourse obligation thereunder arises as a result of a
         breach of representations and warranties contained therein.

                  "Continue," "Continuation," and "Continued" shall refer to the
         continuation pursuant to SECTION 4.2 hereof of a Eurodollar Rate Loan
         of one Type as a Eurodollar Rate Loan of the same Type from one
         Interest Period to the next Interest Period.

                  "Convert," "Conversion," and "Converted" shall refer to a
         conversion pursuant to SECTION 4.2 of one Type of Loan denominated in
         Dollars into another Type of Loan.

                  "Cost of Acquisition" means, with respect to any Acquisition,
         as at the date of entering into any agreement therefor, the SUM of the
         following (without duplication): (i) the amount of any cash and fair
         market value of other property (excluding the unpaid principal amount
         of any debt instrument) given as consideration, (ii) the amount
         (determined by using the face amount or the amount payable at maturity,
         whichever is greater) of any Indebtedness incurred, assumed or acquired
         by the Parent or any Subsidiary in connection with such Acquisition,
         (iii) all additional purchase price amounts in the form of earnouts and
         other contingent obligations that should be recorded at the time of
         such Acquisition on the financial statements of the Parent and its
         Subsidiaries in accordance with GAAP, and (iv) all amounts paid in
         respect of covenants not to compete, consulting agreements that should
         be recorded on financial statements of the Parent and its Subsidiaries
         in accordance with GAAP, and other affiliated contracts in connection
         with such Acquisition.

                  "Default" means any event or condition which, with the giving
         or receipt of notice or lapse of time or both, would constitute an
         Event of Default hereunder.

                  "Default Rate" means (i) with respect to each Eurodollar Rate
         Loan and Competitive Bid Loan, until the end of the Interest Period
         applicable thereto, a rate of two percent (2%) above the Eurodollar
         Rate, Absolute Rate or Eurodollar Competitive Rate, as the case may be,
         applicable to such Loan, and thereafter at a rate of interest per annum
         which shall be two percent (2%) above the Base Rate, (ii) with respect
         to Base Rate Loans, Swing Line Loans, Reimbursement Obligations, fees,
         and other amounts payable in respect of Obligations or (except as
         otherwise expressly provided therein) the obligations of any other
         Person under any of the other Loan Documents, a rate of interest per
         annum which shall be two percent (2%) above the Base Rate and (iii) in
         any case, the maximum rate permitted by applicable law, if lower.

                  "Dollar Equivalent Amount" means, with respect to a specified
         Alternative Currency amount, the amount of Dollars into which an
         Alternative Currency amount would be converted, based on the applicable
         Advance Day Exchange Rate.

                                       11
<PAGE>   18

                  "Dollar Value" of an Advance or Loan or Letter of Credit in an
         Alternative Currency means the Dollar Equivalent Amount of the
         principal amount of such Advance or Loan or stated amount of such
         Letter of Credit, as the case may be, as recorded in the Administrative
         Agent's records pursuant to SECTION 2.1(b) and SECTION 3.1(b).

                  "Dollars" and the symbol "$" means dollars constituting legal
         tender for the payment of public and private debts in the United States
         of America.

                  "Domestic Subsidiary" means any Subsidiary of the Parent
         organized under the laws of the United States of America, any state or
         territory thereof or the District of Columbia.

                  "Eligible Assignee" means (i) a Lender, (ii) an affiliate of a
         Lender, and (iii) any other Person approved by the Administrative Agent
         and, unless an Event of Default has occurred and is continuing at the
         time any assignment is effected in accordance with SECTION 12.1, the
         Parent, such approval not to be unreasonably withheld (provided that
         the incurrence by the Parent of additional costs pursuant to ARTICLE V
         as a result of such assignment shall constitute a reasonable basis for
         withholding such consent) or delayed by the Parent and such approval to
         be deemed given by the Parent (in the absence of notice to the
         contrary, effective upon receipt) within six Business Days after notice
         of such proposed assignment has been provided by the assigning Lender
         to the Parent; PROVIDED, HOWEVER, that neither the Parent nor an
         affiliate of the Parent shall qualify as an Eligible Assignee.

                  "Employee Benefit Plan" means (i) any employee benefit plan,
         including any Pension Plan, within the meaning of Section 3(3) of ERISA
         which (A) is maintained for employees of the Parent or any of its ERISA
         Affiliates, or any Subsidiary or is assumed by the Parent or any of its
         ERISA Affiliates, or any Subsidiary in connection with any Acquisition
         or (B) has at any time been maintained for the employees of the Parent,
         any current or former ERISA Affiliate, or any Subsidiary and (ii) any
         plan, arrangement, understanding or scheme maintained by the Parent or
         any Subsidiary that provides retirement, deferred compensation,
         employee or retiree medical or life insurance, severance benefits or
         any other benefit covering any employee or former employee and which is
         administered under any Foreign Benefit Law or regulated by any
         Governmental Authority other than the United States of America.

                  "Environmental Laws" means any federal, state or local
         statute, law, ordinance, code, rule, regulation, order, decree, permit
         or license regulating, relating to, or imposing liability or standards
         of conduct concerning, any environmental matters or conditions,
         environmental protection or conservation, including without limitation,
         the Comprehensive Environmental Response, Compensation and Liability
         Act of 1980, as amended; the Superfund Amendments and Reauthorization
         Act of 1986, as amended; the Resource Conservation and Recovery Act, as
         amended; the Toxic Substances Control Act, as amended; the Clean Air
         Act, as amended; the Clean Water Act, as amended; together with all
         regulations promulgated thereunder, and any other "Superfund" or
         "Superlien" law.

                                       12
<PAGE>   19

                  "EMU" means the European economic and monetary union.

                  "EMU Legislation" means (a) a Treaty on European Union (the
         Treaty of Rome of March 25, 1957, as amended by the Single European Act
         1986 and the Maastricht Treaty (which was signed at Maastricht on
         February 1, 1992 and came into force on November 1, 1993)) and (b)
         legislative measures of the European Council (including without
         limitation European Council regulations) for the introduction of,
         changeover to or operation of the euro, in each case as amended or
         supplemented from time to time.

                  "ERISA" means the Employee Retirement Income Security Act of
         1974, as amended from time to time, and any successor statute and all
         rules and regulations promulgated thereunder.

                  "ERISA Affiliate," as applied to the Parent, means any Person
         or trade or business which is a member of a group which is under common
         control with the Borrower, who together with the Parent, is treated as
         a single employer within the meaning of Section 414(b) and (c) of the
         Code.

                  "euro" each means the single official non-legacy currency
         denominated as the euro and constituting legal tender for the payment
         of public and private debts in the Participating Member States.

                  "Eurodollar Competitive Rate" has the meaning assigned to such
         term in SECTION 2.2(c)(ii)(D).

                  "Eurodollar Rate Loan" means a Loan for which the rate of
         interest is determined by reference to the Eurodollar Rate.

                  "Eurodollar Rate" means the interest rate per annum calculated
         according to the following formula:

                  Eurodollar =   INTERBANK OFFERED RATE     +    Applicable
                  Rate         ----------------------------        Margin
                                 1 - Reserve Requirement

                  "Event of Default" means any of the occurrences set forth as
         such in SECTION 10.1.

                  "Exchange Act" means the Securities Exchange Act of 1934, as
         amended, and the regulations promulgated thereunder.

                  Existing Letters of Credit" means those Letters of Credit
         described on SCHEDULE 1.1(a).

                  "Executive Officer" means any of the following officers of the
         Parent, to wit: the Chief Executive Officer, the President, any Senior
         Vice President designated in the Parent's

                                       13
<PAGE>   20

         Form 10-K as an Executive Officer, the Corporate Counsel-Secretary, and
         Vice President and Treasurer.

                  "Facility Termination Date" means such date as all of the
         following shall have occurred: (a) the Borrowers shall have permanently
         terminated the Revolving Credit Facility, Competitive Bid Facility and
         the Swing Line by payment in full in cash of all outstanding
         Competitive Bid Loans, Revolving Credit Outstandings, Letter of Credit
         Outstandings and Swing Line Outstandings, together with all accrued and
         unpaid interest thereon, except for the undrawn portion of Letters of
         Credit as have been fully cash collateralized in a manner consistent
         with the terms of SECTION 10.1(b), (b) Revolving Credit Commitments,
         Competitive Bid Loan Commitments and Letter of Credit Commitments shall
         have terminated or expired and (c) the Borrowers shall have fully,
         finally and irrevocably paid and satisfied in full all Obligations
         (other than Obligations consisting of continuing indemnities and other
         contingent Obligations of any of the Borrowers that may be owing to the
         Lenders pursuant to the Loan Documents and expressly survive
         termination of this Agreement);

                  "FASB 133 Adjustments" means entries on or adjustments to any
         balance sheet or statement of income in respect of derivatives or
         hedging instruments as required or permitted by Statement of Financial
         Accounting Standards No. 133.

                  "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 next 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 rate
         charged to the Administrative Agent (in its individual capacity) on
         such day on such transactions as determined by the Administrative
         Agent.

                  "Fiscal Year" means the twelve month fiscal period of the
         Parent and its Subsidiaries commencing on July 1 of each calendar year
         and ending on June 30 of the next calendar year.

                  "Foreign Benefit Law" means any applicable statute, law,
         ordinance, code, rule, regulation, order or decree of any foreign
         nation or any province, state, territory, protectorate or other
         political subdivision thereof regulating, relating to, or imposing
         liability or standards of conduct concerning, any Employee Benefit
         Plan.

                  "Four-Quarter Period" means a period of four full consecutive
         fiscal quarters of the Parent and its Subsidiaries, taken together as
         one accounting period.

                                       14
<PAGE>   21

                  "Funding Bank" means any banking institution approved by the
         Administrative Agent located within a country which country's currency
         constitutes an Alternative Currency; provided that in the case of the
         euro, the Funding Bank may be located in any Participating Member
         State.

                  "GAAP" or "Generally Accepted Accounting Principles" means
         generally accepted accounting principles, being those principles of
         accounting set forth in pronouncements of the Financial Accounting
         Standards Board, the American Institute of Certified Public
         Accountants, or which have other substantial authoritative support and
         are applicable in the circumstances as of the date of a report.

                  "Governmental Authority" shall mean any Federal, state,
         municipal, national or other governmental department, commission,
         board, bureau, court, agency or instrumentality or political
         subdivision thereof or any entity or officer exercising executive,
         legislative, judicial, regulatory or administrative functions of or
         pertaining to any government or any court, in each case whether
         associated with a state of the United States, the United States, or a
         foreign entity or government.

                  "Hazardous Material" means and includes any pollutant,
         contaminant, or hazardous, toxic or dangerous waste, substance or
         material (including without limitation petroleum products,
         asbestos-containing materials and lead), the generation, handling,
         storage, transportation, disposal, treatment, release, discharge or
         emission of which is subject to any Environmental Law.

                  "Indebtedness" means as to any Person, without duplication,
         (a) all Indebtedness for Money Borrowed of such Person, (b) all
         indebtedness secured by any Lien on any property or asset owned or held
         by such Person (other than commercial letters of credit) regardless or
         whether the indebtedness secured thereby shall have been assumed by
         such Person or is non-recourse to the credit of such Person and (c) all
         Contingent Obligations of such Person.

                  "Indebtedness for Money Borrowed" means with respect to any
         Person, without duplication, all indebtedness in respect of money
         borrowed, including without limitation, all obligations under Capital
         Leases, the deferred purchase price of any property or services, the
         aggregate face amount of all bankers acceptances, letters of credit
         (other than commercial letters of credit), the amount of off-balance
         sheet leases of real estate and large items of equipment which are
         treated as Indebtedness for income tax purposes but are treated as
         operating leases under GAAP, and (without duplication) all payment and
         reimbursement obligations in respect thereof whether or not matured,
         evidenced by a promissory note, bond, debenture or similar written
         obligation for the payment of money (including reimbursement agreements
         and conditional sales or similar title retention agreements), other
         than trade payables and accrued expenses incurred in the ordinary
         course of business.

                  "Interbank Offered Rate" means, with respect to any Eurodollar
         Rate Loan or any Competitive Bid Loan at a Eurodollar Competitive Rate
         for the Interest Period applicable

                                       15
<PAGE>   22

         thereto, the rate per annum (rounded upwards, if necessary, to the
         nearest 1/100 of 1%) appearing (x) in the case of Loans in Dollars on
         Telerate Page 3750 (or any successor page) as the London interbank
         offered rate for deposits in Dollars and (y) in the case of Loans in an
         Alternative Currency, on the applicable Telerate Rate Page as the
         London interbank offered rate for deposits in the applicable
         Alternative Currency 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 "Interbank Offered Rate" shall mean, with respect
         to any Eurodollar Rate Loan or any Competitive Bid Loan at a Eurodollar
         Competitive Rate for the Interest Period applicable thereto, 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 or the applicable Alternative Currency, as
         the case may be, 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 (rounded upwards, if
         necessary, to the nearest 1/100 of 1%).

                  "Interest Period" means (a) for each Eurodollar Rate Loan, a
         period commencing on the date such Eurodollar Rate Loan is made or
         Converted or Continued and ending, at the Borrower's option, on the
         date one, two, three or six months thereafter as notified to the
         Administrative Agent by the Authorized Representative in accordance
         with the terms hereof; PROVIDED that,

                           (i) if an Interest Period for a Eurodollar Rate Loan
                  would end on a day which is not a Business Day, such Interest
                  Period shall be extended to the next Business Day (unless such
                  extension would cause the applicable Interest Period to end in
                  the succeeding calendar month, in which case such Interest
                  Period shall end on the next preceding Business Day);

                           (ii) any Interest Period which begins on the last
                  Business Day of a 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 a calendar month;

                           (iii) on any day, with respect to all Revolving
                  Credit Loans and Competitive Bid Loans, there shall not be in
                  effect (x) more than seven (7) Interest Periods, and (y), in
                  the case of a Competitive Bid Loan, more than one (1) Interest
                  Period having a term of seven (7) days;

                  (b) for each Competitive Bid Loan at an Absolute Rate, the
         period commencing on the date of such Loan and ending on such date as
         may be mutually agreed upon by the Parent and the Lender or Lenders
         making such Competitive Bid Loan or Loans, as the case may be,
         comprising such Competitive Bid Loan; PROVIDED that no Interest Period
         for a

                                       16
<PAGE>   23

         Competitive Bid Loan at an Absolute Rate shall be for a period of less
         than seven or greater than 180 days; and

                  (c) for each Competitive Bid Loan at a Eurodollar Competitive
         Rate, the period commencing on the date such Competitive Bid Loan is
         made and ending, at the Parent's option, on the date one week or one,
         two, three or six months thereafter as notified by the Parent to such
         Lender by the Authorized Representative three (3) Business Days prior
         to the beginning of such Interest Period PROVIDED that if an Interest
         Period for such Loan would end on a day which is not a Business Day,
         such Interest Period shall be extended to the next Business Day (unless
         such extension would cause the applicable Interest Period to end in the
         succeeding calendar month, in which case such Interest Period shall end
         in the next preceding Business Day).

                  "Interest Rate Selection Notice" means the written notice
         delivered by an Authorized Representative in connection with the
         election of a subsequent Interest Period for any Eurodollar Rate Loan
         or the Conversion of any Eurodollar Rate Loan denominated in Dollars
         into a Base Rate Loan or the Conversion of any Base Rate Loan into a
         Eurodollar Rate Loan, in the form of EXHIBIT E.

                  "Investments" means all expenditures made and all liabilities
         incurred (contingently or otherwise) for the acquisition of stock or
         Indebtedness of, or for loans, advances, capital contributions or
         transfers of property to, or in respect of any guaranties, or
         obligations of, any Person. In determining the aggregate amount of
         Investments outstanding at any particular time: (a) the amount of any
         Investment represented by a guaranty shall be taken at not less than
         the principal amount of the obligations guaranteed and still
         outstanding; (b) there shall be included as an Investment all interest
         accrued with respect to Indebtedness constituting an Investment unless
         and until such interest is paid; (c) there shall be deducted in respect
         of each such Investment any amount received as a return of capital (but
         only by repurchase, redemption, retirement, repayment, liquidating
         dividend or liquidating distribution); (d) there shall not be deducted
         in respect of any Investment any amounts received as earnings on such
         Investment, whether as dividends, interest or otherwise, except that
         accrued interest included as provided in the foregoing clause (b) may
         be deducted when paid; and (e) there shall not be deducted from the
         aggregate amount of Investments any decrease in the value thereof.

                  "Issuing Bank" means Bank of America as issuer of Letters of
         Credit under ARTICLE III and BankBoston, N.A. as issuer of the Existing
         Letters of Credit.

                  "LC Account Agreement" means the LC Account Agreement dated as
         of the date hereof among the Borrowers and the Administrative Agent, as
         amended, modified or supplemented from time to time.

                  "Letter of Credit" means a standby letter of credit issued by
         the Issuing Bank pursuant to Article III hereof for the account of one
         or more of the Borrowers in favor of a Person advancing credit or
         securing an obligation on behalf of one or more the Borrowers.

                                       17
<PAGE>   24

                  "Letter of Credit Commitment" means, with respect to each
         Lender, the obligation of such Lender to acquire Participations in
         respect of Letters of Credit and Reimbursement Obligations up to an
         aggregate amount at any one time outstanding equal to such Lender's
         Applicable Commitment Percentage of the Total Letter of Credit
         Commitment as the same may be increased or decreased from time to time
         pursuant to this Agreement.

                  "Letter of Credit Facility" means the facility described in
         ARTICLE III hereof providing for the issuance by the Issuing Bank for
         the account of one or more of the Borrowers of Letters of Credit in an
         aggregate stated amount at any time outstanding not exceeding the Total
         Letter of Credit Commitment minus outstanding Reimbursement
         Obligations.

                  "Letter of Credit Outstandings" means, as of any date of
         determination, the aggregate amount available to be drawn under all
         Letters of Credit plus Reimbursement Obligations then outstanding.

                  "Lien" means any interest in property securing any obligation
         owed to, or a claim by, a Person other than the owner of the property,
         whether such interest is based on the common law, statute or contract,
         and including but not limited to the lien or security interest arising
         from a mortgage, encumbrance, pledge, security agreement, conditional
         sale or trust receipt or a lease, consignment or bailment for security
         purposes. For the purposes of this Agreement, the Parent and any
         Subsidiary shall be deemed to be the owner of any property which it has
         acquired or holds subject to a conditional sale agreement, financing
         lease, or other arrangement pursuant to which title to the property has
         been retained by or vested in some other Person for security purposes.

                  "Line or Lines of Business" means the marketing and sale of
         security, sensing, tracking and video systems and components, including
         without limitation, electronic article surveillance systems, closed
         circuit television systems, radio frequency identification systems and
         access control and asset management systems and related services, such
         as installation, maintenance and monitoring.

                  "Loan" or "Loans" means any of the Revolving Loans, Swing Line
         Loans or Competitive Bid Loans.

                  "Loan Documents" means this Agreement, the Notes, the LC
         Account Agreement, the Applications and Agreements for Letter of
         Credit, and all other instruments and documents heretofore or hereafter
         executed or delivered to or in favor of any Lender (including the
         Issuing Bank) or the Administrative Agent in connection with the Loans
         made and transactions contemplated under this Agreement, as the same
         may be amended, supplemented or replaced from the time to time.

                  "Material Adverse Effect" means a material adverse effect on
         (i) the business, properties, operations, prospects or condition,
         financial or otherwise, of Parent and its Subsidiaries, taken as a
         whole, (ii) the ability of any Borrower to pay or perform its

                                       18
<PAGE>   25

         respective obligations, liabilities and indebtedness under the Loan
         Documents as such payment or performance becomes due in accordance with
         the terms thereof, or (iii) the rights, powers and remedies of the
         Administrative Agent or any Lender under any Loan Document or the
         validity, legality or enforceability thereof.

                  "Material Subsidiary" means any Borrowing Subsidiary and any
         direct or indirect Subsidiary of the Parent which (i) has Consolidated
         Total Assets equal to or greater than 5% of Consolidated Total Assets
         (calculated as of the most recent fiscal period with respect to which
         the Agent shall have received financial statements required to be
         delivered pursuant to SECTIONS 8.1(a) or (b) (or if prior to delivery
         of any financial statements pursuant to such Sections, then calculated
         with respect to the Fiscal Year end financials statements referenced in
         SECTION 7.6) (the "Required Financial Information")) or (ii) has
         consolidated total revenues equal to or greater than 5% of consolidated
         total revenues of the Parent and its Subsidiaries (calculated for the
         most recent period for which the Agent has received the Required
         Financial Information); PROVIDED, HOWEVER, that notwithstanding the
         foregoing, the term "Material Subsidiary" shall mean each of those
         Subsidiaries that together with the Borrower and each other Material
         Subsidiary have assets equal to not less than 85% of Consolidated Total
         Assets (calculated as described above) and consolidated total revenues
         of not less than 85% of consolidated total revenues (calculated as
         described above); PROVIDED, FURTHER that if more than one combination
         of Subsidiaries satisfies such threshold, then those Subsidiaries so
         determined to be "Material Subsidiaries" shall be specified by the
         Parent in the Schedule required to be delivered by the Parent to the
         Administrative Agent on the Closing Date pursuant to SECTION 6.1 and
         thereafter pursuant to SECTION 8.1(a).

                  "Moody's" means Moody's Investors Service, Inc.

                  "Multiemployer Plan" means a "multiemployer plan" as defined
         in Section 4001(a)(3) of ERISA to which the Parent or any ERISA
         Affiliate is making, or is accruing an obligation to make,
         contributions or has made, or been obligated to make, contributions
         within the preceding six (6) Fiscal Years.

                  "Municipal Obligations" means general obligations issued by,
         and supported by the full taxing authority of, any state of the United
         States of America or of any municipal corporation or other public body
         organized under the laws of any such state which are rated in the
         highest investment rating category by both S&P and Moody's.

                  "Note Agreement (1993)" means the Note Agreement dated as of
         January 15, 1993 pertaining to the Parent's $135,000,000 Principal
         Amount 8.21% Senior Notes Due January 30, 2003, as amended by the First
         Amendment dated as of May 31, 1993, as heretofore amended and as it may
         be amended or supplemented from time to time.

                  "Note Agreement (1996)" means the Note Agreement dated as of
         March 29, 1996, pertaining to Parent's $230,000,000 Principal Amount
         7.74% Senior Notes Due March 29, 2006, $50,000,000 Principal Amount
         7.11% Senior Notes Due March 29, 2001 and

                                       19
<PAGE>   26

         $70,000,000 Principal Amount 6.99% Senior Notes Due March 29, 2000, and
         as it may be amended or supplemented from time to time.

                  "Notes" means, collectively, the Competitive Bid Notes, the
         Swing Line Note and the Revolving Notes.

                  "Obligations" means the obligations, liabilities and
         Indebtedness of each of the Borrowers with respect to (i) the principal
         and interest, including any interest accruing after the commencement of
         any bankruptcy or receivership proceedings, on the Loans as evidenced
         by the Notes, (ii) the Reimbursement Obligations and otherwise in
         respect of the Letters of Credit and (iii) the payment and performance
         of all other obligations, liabilities and Indebtedness of each of the
         Borrowers to the Lenders (including the Issuing Bank), the
         Administrative Agent or BAS hereunder, under any one or more of the
         other Loan Documents or with respect to the Loans.

                  "Operating Documents" means with respect to any corporation,
         limited liability company, partnership, limited partnership, limited
         liability partnership or other legally authorized incorporated or
         unincorporated entity, the bylaws, operating agreement, partnership
         agreement, limited partnership agreement or other applicable documents
         relating to the operation, governance or management of such entity.

                  "Organizational Action" means with respect to any corporation,
         limited liability company, partnership, limited partnership, limited
         liability partnership or other legally authorized incorporated or
         unincorporated entity, any corporate, organizational or partnership
         action (including any required shareholder, member or partner action),
         or other similar official action, as applicable, taken by such entity.

                  "Organizational Documents" means with respect to any
         corporation, limited liability company, partnership, limited
         partnership, limited liability partnership or other legally authorized
         incorporated or unincorporated entity, the articles of incorporation,
         certificate of incorporation, articles of organization, certificate of
         limited partnership or other applicable organizational or charter
         documents relating to the creation of such entity.

                  "Outstandings" means, collectively, at any date, the Letter of
         Credit Outstandings, Swing Line Outstandings, outstanding Competitive
         Bid Loans and Revolving Credit Outstandings on such date.

                  "Participating Member State" means each country which from
         time to time becomes a Participating Member State as described in EMU
         Legislation.

                  "Participation" means, (i) with respect to any Lender (other
         than the Issuing Bank) and a Letter of Credit, the extension of credit
         represented by the participation of such Lender hereunder in the
         liability of the Issuing Bank in respect of a Letter of Credit issued
         by the Issuing Bank in accordance with the terms hereof and (ii) with
         respect to any Lender (other

                                       20
<PAGE>   27

         than Bank of America) and a Swing Line Loan, the extension of credit
         represented by the participation of such Lender hereunder in the
         liability of Bank of America in respect of a Swing Line Loan made by
         Bank of America in accordance with the terms hereof.

                  "PBGC" means the Pension Benefit Guaranty Corporation and any
         successor thereto.

                  "Pension Plan" means any employee pension benefit plan within
         the meaning of Section 3(2) of ERISA, other than a Multiemployer Plan,
         which is subject to the provisions of Title IV of ERISA or Section 412
         of the Code and which (i) is maintained for employees of the Parent or
         any of its ERISA Affiliates or is assumed by the Parent or any of its
         ERISA Affiliates in connection with any Acquisition or (ii) has at any
         time been maintained for the employees of the Parent or any current or
         former ERISA Affiliate.

                  "Person" means an individual, partnership, corporation,
         limited liability company, limited liability partnership, trust,
         unincorporated organization, association, joint venture or a government
         or agency or political subdivision thereof.

                  "Pricing Grid" means the table set forth on SCHEDULE 1.1(b)
         attached hereto setting forth the Ratings and the number of basis
         points to be utilized in calculating each of the Applicable Margin and
         the Applicable Facility Fee.

                  "Prime Rate" means the per annum rate of interest established
         from time to time by Bank of America as its prime rate, which rate may
         not be the lowest rate of interest charged by Bank of America to its
         customers.

                  "Principal Office" means the principal office of Bank of
         America, presently located at 101 North Tryon Street, 15th Floor, NC1
         001-15-04, Charlotte, North Carolina 28255, Attention: Agency Services,
         or such other office and address as the Administrative Agent may from
         time to time designate.

                  "Quotation Date" has the meaning assigned to such term in
         SECTION 2.2 hereof.

                  "Rate Hedging Obligations" means, without duplication, any and
         all obligations of the Parent or any Subsidiary, whether absolute or
         contingent and howsoever and whensoever created, arising, evidenced or
         acquired (including all renewals, extensions and modifications thereof
         and substitutions therefor), under (i) any and all agreements, devices
         or arrangements designed to protect at least one of the parties thereto
         from the fluctuations of interest rates, exchange rates or forward
         rates applicable to such party's assets, liabilities or exchange
         transactions, including, but not limited to, Dollar-denominated or
         cross-currency interest rate exchange agreements, forward currency
         exchange agreements, interest rate cap or collar protection agreements,
         forward rate currency or interest rate options, puts, warrants and
         those commonly known as interest rate "swap" agreements; (ii) all other
         "derivative instruments" as defined in FASB 133 and which are subject
         to the reporting requirements of FASB 133;

                                       21
<PAGE>   28

         and (iii) any and all cancellations, buybacks, reversals, terminations
         or assignments of any of the foregoing.

                  "Rating" means the long-term, unsecured, unenhanced debt
         rating assigned to senior Indebtedness of the Parent by S&P, or if S&P
         shall cease to provide Ratings of Indebtedness of Persons, such other
         rating agency as shall be acceptable to the Required Lenders.

                  "Regulation D" means Regulation D of the Board as the same may
         be amended or supplemented from time to time.

                  "Reimbursement Obligation" shall mean at any time, the
         obligation of the Borrowers with respect to any Letter of Credit to
         reimburse the Issuing Bank and the Lenders to the extent of their
         respective Participations (including by the receipt by the Issuing Bank
         of proceeds of Loans pursuant to SECTION 2.1(c)(iii)) for amounts
         theretofore paid by the Issuing Bank pursuant to a drawing under such
         Letter of Credit.

                  "Repurchase Agreement" means a repurchase agreement entered
         into with any financial institution whose debt obligations or
         commercial paper are rated "A" by either of S&P or Moody's or "A-1" by
         S&P or "P-1" by Moody's.

                  "Required Lenders" means, as of any date, Lenders on such date
         having Credit Exposures (as defined below) aggregating more than 50% of
         the aggregate Credit Exposures of all the Lenders on such date. For
         purposes of the preceding sentence, the amount of the "CREDIT EXPOSURE"
         of each Lender shall be equal at all times to the sum of its Revolving
         Credit Commitment; PROVIDED that, for the purpose of this definition
         only, (A) if any Lender shall have failed to fund its Applicable
         Commitment Percentage of any Advance, then the Revolving Credit
         Commitment of such Lender shall be deemed reduced by the amount it so
         failed to fund for so long as such failure shall continue and such
         Lender's Credit Exposure attributable to such failure shall be deemed
         held by any Lender making more than its Applicable Commitment
         Percentage of such Advance to the extent it covers such failure, (B) if
         any Lender shall have failed to pay to the Issuing Bank upon demand its
         Applicable Commitment Percentage of any drawing under any Letter of
         Credit resulting in an outstanding Reimbursement Obligation (whether by
         funding its Participation therein or otherwise), such Lender's Credit
         Exposure attributable to all Letter of Credit Outstandings shall be
         deemed to be held by the Issuing Bank until such Lender shall pay such
         deficiency amount to the Issuing Bank together with interest thereon as
         provided in SECTIONS 4.9 and 4.10 and (C) if any Lender shall have
         failed to pay to Bank of America on demand its Applicable Commitment
         Percentage of any Swing Line Loan (whether by funding its Participation
         therein or otherwise), such Lender's Credit Exposure attributable to
         all Swing Line Outstandings shall be deemed to be held by Bank of
         America until such Lender shall pay such deficiency amount to Bank of
         America together with interest thereon as provided in SECTION 2.5.

                                       22
<PAGE>   29

                  "Reserve Requirement" means, at any time, the maximum rate at
         which reserves (including, without limitation, any marginal, special,
         supplemental, or emergency reserves) are required to be maintained
         under regulations issued from time to time by the Board of Governors of
         the Federal Reserve System (or any successor) by member banks of the
         Federal Reserve System against "Eurocurrency liabilities" (as such term
         is used in Regulation D). Without limiting the effect of the foregoing,
         the Reserve Requirement shall reflect any other reserves required to be
         maintained by such member banks with respect to (i) any category of
         liabilities which includes deposits by reference to which the
         Eurodollar Rate is to be determined, or (ii) any category of extensions
         of credit or other assets which include Eurodollar Rate Loans. The
         Eurodollar Rate shall be adjusted automatically on and as of the
         effective date of any change in the Reserve Requirement.

                  "Restricted Payment" means (a) any dividend or other
         distribution, direct or indirect, on account of any shares of any class
         of stock of Parent or any Subsidiary (other than those payable or
         distributable solely to the Parent and dividends paid to the holders of
         the Parent's 6 1/2% Convertible Preferred Stock with common stock of
         the Parent) now or hereafter outstanding, except a dividend payable
         solely in shares of a class of stock to the holders of that class; (b)
         any redemption, conversion, exchange, retirement or similar payment,
         purchase or other acquisition for value, direct or indirect, of any
         shares of any class of stock of Parent or any of its Subsidiaries
         (other than those payable or distributable solely to the Parent and
         other than the redemption of Parent's 6 1/2% Convertible Preferred
         Stock with the Parent's Common Stock) now or hereafter outstanding; (c)
         any payment made to retire, or to obtain the surrender of, any
         outstanding warrants, options or other rights to acquire shares of any
         class of stock of Parent or any securities of its Subsidiaries now or
         hereafter outstanding; (d) any issuance and sale of securities of any
         Subsidiary of the Parent (or any option, warrant or right to acquire
         such stock) other than to the Parent and (e) any payment (which shall
         not be deemed to include a conversion), other than a scheduled
         mandatory prepayment or payment, on any Subordinated Indebtedness;
         PROVIDED, HOWEVER, that payments made with respect to ownership
         interests in Subsidiaries required by applicable law to be held by a
         Person other than the Parent or a Subsidiary and distributions to
         owners of joint ventures or minority interests shall not be deemed
         Restricted Payments.

                  "Revolving Credit Commitment" means, with respect to each
         Lender, the obligation of such Lender to make Revolving Loans to the
         Borrowers up to an aggregate principal amount at any one time
         outstanding equal to such Lender's Applicable Commitment Percentage of
         the Total Revolving Credit Commitment.

                  "Revolving Credit Facility" means the facility described in
         SECTION 2.1 hereof providing for Loans to the Borrowers by the Lenders
         in the aggregate principal amount of the Total Revolving Credit
         Commitment.

                  "Revolving Credit Outstandings" means, as of any date of
         determination, the aggregate principal amount of all Revolving Loans
         then outstanding.

                                       23
<PAGE>   30

                  "Revolving Credit Termination Date" means (i) the Stated
         Termination Date or (ii) such earlier date of termination of Lenders'
         obligations pursuant to SECTION 10.1 upon the occurrence of an Event of
         Default, or (iii) such date as the Borrowers may voluntarily and
         permanently terminate the Revolving Credit Facility and the Competitive
         Bid Facility by voluntary termination of the Commitments in full and by
         payment in full of all Revolving Credit Outstandings, outstanding
         Competitive Bid Loans, Swing Line Outstandings and Letter of Credit
         Outstandings and cancellation of all Letters of Credit and Competitive
         Bid Loan Commitments, together with all accrued and unpaid interest
         thereon; PROVIDED that with the consent of the Administrative Agent
         Letters of Credit may be cash collateralized in a manner acceptable to
         the Administrative Agent.

                  "Revolving Loan" means any borrowing pursuant to an Advance
         under the Revolving Credit Facility in accordance with SECTION 2.1.

                  "Revolving Notes" means, collectively, the promissory notes of
         the Borrowers evidencing Revolving Loans executed and delivered to the
         Lenders as provided in SECTION 2.4 substantially in the form of EXHIBIT
         F-2, with appropriate insertions as to amounts, dates and names of
         Lenders.

                  "S&P" means Standard & Poor's Ratings Group, a division of The
         McGraw-Hill Companies, Inc.

                  "Senior Notes" means the notes issued prior to the Closing
         Date under the Note Agreement (1993) or the Note Agreement (1996).

                  "Solvent" means, when used with respect to any Person, that at
         the time of determination:

                           (a) the fair value of its assets (both at fair
                  valuation and at present fair saleable value on an orderly
                  basis) is in excess of the total amount of its liabilities,
                  including Contingent Obligations; and

                           (b) it is then able and expects to be able to pay its
                  debts as they mature; and

                           (c) it has capital sufficient to carry on its
                  business as conducted and as proposed to be conducted.

                  "Spot Rate of Exchange" means, (i) in determining the Dollar
         Equivalent Amount or a specified Alternative Currency amount as of any
         date, the spot exchange rate determined by the Administrative Agent in
         accordance with its usual procedures for the purchase by the
         Administrative Agent of Dollars with such Alternative Currency at
         approximately 10:00 A.M. on the Business Day that is two (2) Business
         Days prior to such date, and (ii) in determining the Alternative
         Currency Equivalent Amount of a specified Dollar amount on

                                       24
<PAGE>   31

         any date, the spot exchange rate determined by the Administrative Agent
         in accordance with its usual procedures for the purchase by the
         Administrative Agent of such Alternative Currency with Dollars at
         approximately 10:00 A.M. on the Business Day that is two (2) Business
         Days prior to such date.

                  "Stated Termination Date" means December 8, 2002.

                  "Subordinated Indebtedness" means unsecured Indebtedness of
         the Parent which (a) is expressly subordinate in right of payment to
         the Obligations and the Senior Notes pursuant to a form of
         subordination substantially in the form of EXHIBIT G and (b) has a
         Weighted Average Life to Maturity extending beyond the Stated
         Termination Date in effect from time to time and the latest final
         maturity of the Senior Notes.

                  "Subsequent Participant" means each country that adopts the
         euro as its lawful currency after January 1, 1999.

                  "Subsidiary" means any corporation or other entity in which
         more than 50% of its outstanding Voting Securities or more than 50% of
         all equity interests is owned directly or indirectly by the Parent
         and/or by one or more of the Borrower's Subsidiaries.

                  "Swing Line" means the revolving line of credit established by
         Bank of America in favor of the Borrowers pursuant to SECTION 2.5.

                  "Swing Line Loans" means loans made by Bank of America to the
         Borrowers pursuant to SECTION 2.5.

                  "Swing Line Note" means the promissory note of the Borrowers
         evidencing the Swing Line executed and delivered to Bank of America as
         provided in Section 2.4 substantially in the form of EXHIBIT F-3.

                  "Swing Line Outstandings" means, as of any date of
         determination, the aggregate principal amount of all Swing Line Loans
         then outstanding.

                  "Termination Event" means: (i) a "Reportable Event" described
         in Section 4043 of ERISA and the regulations issued thereunder (unless
         the notice requirement has been waived by applicable regulation); or
         (ii) the withdrawal of the Parent or any ERISA Affiliate from a Pension
         Plan during a plan year in which it was a "substantial employer" as
         defined in Section 4001(a)(2) of ERISA or was deemed such under Section
         4062(e) of ERISA; or (iii) the termination of a Pension Plan, the
         filing of a notice of intent to terminate a Pension Plan or the
         treatment of a Pension Plan amendment as a termination under Section
         4041 of ERISA; or (iv) the institution of proceedings to terminate a
         Pension Plan by the PBGC; or (v) any other event or condition which
         would constitute grounds under Section 4042(a) of ERISA for the
         termination of, or the appointment of a trustee to administer, any
         Pension Plan; or (vi) the partial or complete withdrawal of the Parent
         or any ERISA Affiliate from

                                       25
<PAGE>   32

         a Multiemployer Plan; or (vii) the imposition of a Lien pursuant to
         Section 412 of the Code or Section 302 of ERISA; or (viii) any event or
         condition which results in the reorganization or insolvency of a
         Multiemployer Plan under Section 4241 or Section 4245 of ERISA,
         respectively; or (ix) any event or condition which results in the
         termination of a Multiemployer Plan under Section 4041A of ERISA or the
         institution by the PBGC of proceedings to terminate a Multiemployer
         Plan under Section 4042 of ERISA; or (x) any event or condition with
         respect to any Employee Benefit Plan which is regulated by any Foreign
         Benefit Law that results in the termination of such Employee Benefit
         Plan or the revocation of such Employee Benefit Plan's authority to
         operate under the applicable Foreign Benefit Law.

                  "Total Alternative Currency Commitment" means an amount not to
         exceed $25,000,000.

                  "Total Letter of Credit Commitment" means an amount not to
         exceed $50,000,000.

                  "Total Revolving Credit Commitment" means a principal amount
         equal to (i) $115,000,000 or (ii) at such time as the existing EXHIBIT
         A hereto is amended by the entering into of an Amendment Agreement in
         the form of EXHIBIT L by the Borrowers, the Agent and any lending
         institution agreeing to provide additional Loans of up to $10,000,000,
         an amount equal to up to $125,000,000 as such amounts are reduced from
         time to time in accordance with SECTION 2.1(e).

                  "Type" shall mean any type of Loan (i.e., a Base Rate Loan or
         a Eurodollar Rate Loan).

                  "Utilization Amount" means at such times as the sum of (i)
         Revolving Credit Outstandings, (ii) Letter of Credit Outstandings in
         excess of $20,000,000, (iii) outstanding Competitive Bid Loans and (iv)
         Swing Line Outstandings exceed 25% of the Total Revolving Credit
         Commitment, 25 basis points.

                  "Valuation Date" means any of (i) the date of any Advance or
         Continuation of any Loan hereunder, (ii) the date of the issuance of
         any Letter of Credit and the date of a drawing on any Letter of Credit,
         (iii) in the absence of the occurrence of either of the foregoing
         events in a period of three (3) consecutive months, a date selected by
         the Administrative Agent at least once in such three month period, and
         (iv) any other date when there are outstanding Alternative Currency
         Loans or Letters of Credit issued in an Alternative Currency that the
         Administrative Agent shall determine the Dollar Equivalent amount of
         such Loans and Letters of Credit.

                  "Voting Securities" means shares of capital stock issued by a
         corporation, or equivalent interests in any other Person, the holders
         of which are ordinarily, in the absence of contingencies, entitled to
         vote for the election of directors (or persons performing similar

                                       26
<PAGE>   33

         functions) of such Person, even if the right so to vote has been
         suspended by the happening of such a contingency.

                  "Weighted Average Life to Maturity" means, as applied to any
         prepayment of principal of the Senior Notes, or to any Subordinated
         Consolidated Debt, at any date, the number of years obtained by
         dividing (a) the then outstanding principal amount of the Senior Notes
         to be prepaid, or the then outstanding principal amount of such
         Subordinated Debt, into (b) the sum of the products obtained by
         multiplying (i) the amount of each then remaining installment, sinking
         fund, serial maturity, or other required payment, including payment at
         final maturity, foregone by virtue of such prepayment of the Senior
         Notes, or in respect of such Subordinated Debt, by (ii) the number of
         years (calculated to the nearest 1/12th) which would have elapsed
         between such date and the making of such payment.

                  "Year 2000 Compliant" means all computer applications
         (including those affected by information received from its suppliers
         and vendors) that are material to the Parent's or any of its Material
         Subsidiaries' business and operations will on a timely basis be able to
         perform properly date-sensitive functions involving all dates on and
         after January 1, 2000;

                  "Year 2000 Problem" means the risk that computer applications
         used by the Parent or any of its Material Subsidiaries (including those
         affected by information received from its suppliers and vendors) may be
         unable to recognize and perform properly date-sensitive functions
         involving certain dates on and after January 1, 2000.

         1.2 RULES OF INTERPRETATION.

                  (a) All accounting terms not specifically defined herein shall
         have the meanings assigned to such terms and shall be interpreted in
         accordance with GAAP applied on a Consistent Basis.

                  (b) Each term defined in Articles 1, 8 or 9 of the Florida
         Uniform Commercial Code shall have the meaning given therein unless
         otherwise defined herein, except to the extent that the Uniform
         Commercial Code of another jurisdiction is controlling, in which case
         such terms shall have the meaning given in the Uniform Commercial Code
         of the applicable jurisdiction.

                  (c) The headings, subheadings and table of contents used
         herein or in any other Loan Document are solely for convenience of
         reference and shall not constitute a part of any such document or
         affect the meaning, construction or effect of any provision thereof.

                  (d) Except as otherwise expressly provided, references in any
         Loan Document to articles, sections, paragraphs, clauses, annexes,
         appendices, exhibits and schedules are references to articles,
         sections, paragraphs, clauses, annexes, appendices, exhibits and
         schedules in or to such Loan Document.

                                       27

<PAGE>   34

                  (e) All definitions set forth herein or in any other Loan
         Document shall apply to the singular as well as the plural form of such
         defined term, and all references to the masculine gender shall include
         reference to the feminine or neuter gender, and VICE VERSA, as the
         context may require.

                  (f) When used herein or in any other Loan Document, words such
         as "hereunder," "hereto," "hereof" and "herein" and other words of like
         import shall, unless the context clearly indicates to the contrary,
         refer to the whole of the applicable document and not to any particular
         article, section, subsection, paragraph or clause thereof.

                  (g) References to "including" means including without limiting
         the generality of any description preceding such term, and for purposes
         hereof the rule of EJUSDEM GENERIS shall not be applicable to limit a
         general statement, followed by or referable to an enumeration of
         specific matters, to matters similar to those specifically mentioned.

                  (h) Except as otherwise expressly provided, all dates and
         times of day specified herein shall refer to such dates and times at
         Charlotte, North Carolina.

                  (i) Whenever interest rates or fees are established in whole
         or in part by reference to a numerical percentage expressed as "___%,"
         such arithmetic expression shall be interpreted in accordance with the
         convention that 1% = 100 basis points.

                  (j) Each of the parties to the Loan Documents and their
         counsel have reviewed and revised, or requested (or had the opportunity
         to request) revisions to, the Loan Documents, and any rule of
         construction that ambiguities are to be resolved against the drafting
         party shall be inapplicable in the construing and interpretation of the
         Loan Documents and all exhibits, schedules and appendices thereto.

                  (k) Any reference to an officer of the Borrower or any other
         Person by reference to the title of such officer shall be deemed to
         refer to each other officer of such Person, however titled, exercising
         the same or substantially similar functions.

                  (l) All references to any agreement or document as amended,
         modified or supplemented, or words of similar effect, shall mean such
         document or agreement, as the case may be, as amended, modified or
         supplemented from time to time only as and to the extent permitted
         therein and in the Loan Documents.

         1.3 ACCOUNTING PRINCIPLES. If any change after the Closing Date in
GAAP as in effect on the Closing Date shall result in a change in any
calculation required to determine compliance with any provision contained in
this Agreement, the Parent and the Required Lenders will negotiate in good faith
to amend such provision in a manner to reflect such change such that the
determination of compliance with such provision shall yield the same substantive
result as would have obtained prior to such change in GAAP. Until such an
amendment is entered into, covenants shall be calculated in accordance with GAAP
as in effect immediately preceding such change.

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<PAGE>   35

                                   ARTICLE II

                             THE CREDIT FACILITIES

         2.1 REVOLVING LOANS.

         (a) COMMITMENT. Subject to the terms and conditions of this Agreement,
each Lender severally agrees to make Advances in Dollars or an Alternative
Currency (as specified in the respective Borrowing Notice) to the Borrowers
under the Revolving Credit Facility from time to time from the Closing Date
until the Revolving Credit Termination Date on a pro rata basis as to the total
borrowing requested by such Borrower on any day determined by such Lender's
Applicable Commitment Percentage up to but not exceeding the Revolving Credit
Commitment of such Lender, PROVIDED, however, that the Lenders will not be
required and shall have no obligation to make any such Advance (i) so long as a
Default or an Event of Default has occurred and is continuing or (ii) if the
Administrative Agent has accelerated the maturity of any of the Notes as a
result of an Event of Default; PROVIDED further, however, that immediately after
giving effect to each such Advance, the Dollar Value of Outstandings shall not
exceed the Total Revolving Credit Commitment and the Dollar Value of outstanding
Advances in Alternative Currencies shall not exceed the Total Alternative
Currency Commitment. Within such limits and subject to the other terms and
conditions of this Agreement, the Borrowers may borrow, repay and reborrow under
the Revolving Credit Facility on a Business Day from the Closing Date until, but
(as to borrowings and reborrowings) not including, the Revolving Credit
Termination Date.

         (b) (i) Each request by a Borrower for an Advance of an Alternative
Currency under a Borrowing Notice shall constitute the respective Borrower's
request for a Revolving Loan of the Dollar Value of the amount of the
Alternative Currency specified in such Borrowing Notice and for such Revolving
Loan to be made available by the Lenders to such Borrower in the Alternative
Currency Equivalent Amount of such Dollar Value (determined based on the Advance
Day Exchange Rate applicable to such Advance). The principal amount outstanding
on any Revolving Loan shall be recorded in the Administrative Agent's records in
Dollars, based on the Dollar Value of the initial Advance of such Loan in such
Alternative Currency, as reduced from time to time by the Dollar Equivalent
Amount (based on the Advance Day Exchange Rate applicable to such Advance) of
any principal payments with respect to such Advance. Advances in an Alternative
Currency shall be limited to Eurodollar Rate Loans. A Borrower may elect to
Continue an Alternative Currency Loan pursuant to the terms of SECTION 4.2(b)
and subject to the provisions of this SECTION 2.1(b). In the event a Eurodollar
Rate Loan of an Alternative Currency is Continued, such election to Continue the
Eurodollar Rate Loan shall be treated as an Advance and the Administrative Agent
shall notify the Borrowers and the Lenders of the Advance Day Exchange Rate,
Interest Period and the Eurodollar Rate for such Continued Eurodollar Rate Loan.
The Lenders shall each be deemed to have made an Advance to the respective
Borrower of its Applicable Commitment Percentage of such Revolving Loan of an
Alternative Currency and the Administrative Agent shall apply the Advance Day
Exchange Rate for such new Interest Period to such Continued Alternative
Currency Equivalent Amount to determine the new Dollar Value of such Eurodollar
Rate Loan and shall adjust its books and the Revolving Credit Outstandings. In
the event that such

                                       29
<PAGE>   36

adjustment with respect to a Continued Loan would cause either the total Dollar
Value of Revolving Credit Outstandings to exceed the Total Revolving Credit
Commitment or the Dollar Value of such Continued Alternative Currency Equivalent
Amount to exceed the Total Alternative Currency Commitment, the respective
Borrower shall, immediately on the effective date of such Continuation, repay (a
"Rate Adjustment Payment") the portion of such Continued Revolving Loan (without
regard to any minimum amounts set forth in clause (ii) of this SECTION 2.1(b))
(applying the new Advance Day Exchange Rate) necessary to ensure that the total
Dollar Value on such date of all Revolving Credit Outstandings does not exceed
the Total Revolving Credit Commitment and that the Dollar Value on such date of
such Continued Alternative Currency Equivalent Amount does not exceed the Total
Alternative Currency Commitment, PROVIDED, HOWEVER, that the Borrowers shall not
be required to pay any additional compensation pursuant to SECTION 5.5 with
respect to a prepayment of a Revolving Loan required by this sentence if such
prepayment is made immediately on the effective date of the Continuation giving
rise to such prepayment and no notice of such prepayment shall be required. If
the Administrative Agent does not receive an Interest Rate Selection Notice
giving notice of election of the duration of an Interest Period or Continuation
of an Alternative Rate Loan by the time prescribed in SECTION 2.1(c) or 4.2(b),
as applicable, the Borrowers shall be deemed to have elected to repay such
Alternative Currency Rate Loan and if such Alternative Currency Loan is not
repaid on the last day of the applicable Interest Period, together with accrued
interest thereon, such Alternative Currency Loan shall be converted to a Base
Rate Loan in the Dollar Equivalent Amount of such Alternative Currency Loan. For
the purposes of determining the maximum amount of Revolving Credit Outstandings
hereunder, it is intended by the parties that all Revolving Loans shall be the
functional equivalent of Loans made and repaid (based on the applicable Advance
Day Exchange Rate for each Advance) in Dollars. It is recognized that one or
more Lenders may elect to record Loans or Advances in Alternative Currencies.
The Administrative Agent shall maintain records sufficient to identify at any
time, (A) the Advance Day Exchange Rate with respect to each Advance, and (B)
the portion of the Revolving Credit Outstandings attributable to each Advance.

                  (ii) The amount of Outstandings (including with respect to
         Loans of Alternative Currencies the total Dollar Value) shall not
         exceed at any time the Total Revolving Credit Commitment, and, in the
         event there shall be outstanding any such excess, the Borrowers shall
         immediately make such payments and prepayments as shall be necessary to
         comply with this restriction. The Lenders and Borrowers acknowledge and
         agree that the Dollar Equivalent Value of Alternative Currency Loans
         will only be determined on Valuation Dates and the Administrative Agent
         shall give the Borrower notice if the Dollar Value of Outstandings
         shall exceed either the Total Revolving Credit Commitment or the Total
         Alternative Currency Commitment. Each Advance under the Revolving
         Credit Facility, other than Base Rate Refunding Loans, shall be in an
         amount of at least $2,500,000 (or the equivalent thereof if in any
         Alternative Currency), and, if greater than $2,500,000 (or the
         equivalent thereof if in any Alternative Currency), an integral
         multiple of $500,000 (or the equivalent thereof if in any Alternative
         Currency).

                  (iii) Without prejudice and in addition to any method of
         conversion or rounding prescribed by any EMU Legislation and without
         prejudice to (i) the liabilities for

                                       30
<PAGE>   37

         Indebtedness of the Borrowers to the Lenders under or pursuant to this
         Agreement or (ii) each Lender's Revolving Credit Commitment, any
         reference in this Agreement to a minimum amount (or an integral
         multiple thereof) in a national currency of a Subsequent Participant,
         be replaced by a reference to such reasonably comparable amount in the
         euro unit as the Administrative Agent may determine based on the
         applicable exchange rate of such national currency for the euro.

                  (iv) The Agent may from time to time further modify the terms
         of, and practices contemplated by, this Agreement with respect to the
         euro to the extent the Administrative Agent determines, in its
         reasonable discretion, that such modifications are necessary or
         convenient to reflect new laws, regulations, customs or practices
         developed in connection with the euro. The Administrative Agent may
         effect such modifications, and this Agreement shall be deemed so
         amended, without the consent of the Borrowers or Lenders to the extent
         such modifications are not materially disadvantageous to the Borrowers
         and the Lenders, upon notice thereto.

         (c)      ADVANCES.

                  (i) An Authorized Representative shall give the Administrative
         Agent (1) at least three (3) Business Days' irrevocable telephonic
         notice of each Eurodollar Rate Loan denominated in Dollars (whether
         representing an additional borrowing or the Conversion of a borrowing
         hereunder or the Conversion of a borrowing hereunder from a Base Rate
         Loan to a Eurodollar Rate Loan denominated in Dollars) prior to 10:30
         A.M., (2) at least four (4) Business Days' irrevocable notice by
         telephonic notice of each Alternative Currency Loan (whether
         representing an additional borrowing hereunder or the Continuation or
         Conversion of a borrowing hereunder) prior to 10:30 A.M. and (3)
         irrevocable telephonic notice of each Base Rate Loan (other than Base
         Rate Refunding Loans to the extent the same are effected without notice
         pursuant to SECTION 2.1(c)(iii) and whether representing an additional
         borrowing hereunder or the Conversion of borrowing hereunder from
         Eurodollar Rate Loans to Base Rate Loans) prior to 10:30 A.M. on the
         day of such proposed Revolving Loan. Each such notice shall be
         effective upon receipt by the Administrative Agent, shall specify the
         amount of the borrowing, whether Dollar or Alternative Currency, the
         type of Revolving Loan (Base Rate or Eurodollar Rate), the date of
         borrowing and, if a Eurodollar Rate Loan, the Interest Period to be
         used in the computation of interest. The Authorized Representative
         shall provide the Administrative Agent written confirmation of each
         such telephonic notice in the form of a Borrowing Notice or Interest
         Rate Selection Notice (as applicable) with appropriate insertions but
         failure to provide such confirmation shall not affect the validity of
         such telephonic notice. Notice of receipt of such Borrowing Notice or
         Interest Rate Selection Notice, as the case may be, together with the
         amount of each Lender's portion of an Advance requested thereunder,
         shall be provided by the Administrative Agent to each Lender by
         telefacsimile transmission with reasonable promptness, but (provided
         the Administrative Agent shall have received such notice by 10:30 A.M.)
         not later than 1:00 P.M. on the same day as the Administrative Agent's
         receipt of such notice. At approximately 10:00 A.M. two (2) Business
         Days preceding the date specified for an

                                       31
<PAGE>   38

         Advance of an Alternative Currency, the Administrative Agent shall
         determine the Advance Day Exchange Rate and the applicable Eurodollar
         Rate. Not later than 10:45 A.M. two (2) Business Days preceding the
         date specified for each Advance of an Alternative Currency, the
         Administrative Agent shall provide the Borrowers and each Lender notice
         by telefacsimile transmission of the Advance Day Exchange Rate
         applicable to such Advance, and the applicable Alternative Currency
         Equivalent Amount of the Loan or Loans required to be made by each
         Lender on such date, and the Dollar Value of such Loan or Loans and the
         applicable Eurodollar Rate.

                  (ii) (A) In the case of Advances in Dollars, not later than
         2:00 P.M. on the date specified for each borrowing under this SECTION
         2.1, each Lender shall, pursuant to the terms and subject to the
         conditions of this Agreement, make the amount of the Advance or
         Advances to be made by it on such day available by wire transfer to the
         Administrative Agent in the amount of its pro rata share, determined
         according to such Lender's Applicable Commitment Percentage of the
         Revolving Loan or Revolving Loans to be made on such day. Such wire
         transfer shall be directed to the Administrative Agent at the Principal
         Office and shall be in the form of Dollars constituting immediately
         available funds. The amount so received by the Administrative Agent
         shall, subject to the terms and conditions of this Agreement, be made
         available to the Borrowers by delivery of the proceeds thereof to the
         Borrowers' Account or otherwise as shall be directed in the applicable
         Borrowing Notice by the Authorized Representative and reasonably
         acceptable to the Administrative Agent.

                  (B) In the case of Advances of an Alternative Currency, not
         later than 10:00 A.M. on the date specified for each Advance, each
         Lender shall, pursuant to the terms and subject to the conditions of
         this Agreement, make the amount of the Loan or Loans to be made by it
         on such day available to the Borrowers at the Funding Bank, to the
         account of the Administrative Agent with the Funding Bank. The amount
         so received by the Funding Bank shall, subject to the terms and
         conditions of the Loan Documents and upon instruction from the
         Administrative Agent to the Funding Bank on the same day or immediately
         preceding day but no later than 10:00 A.M., be made available to the
         Borrowers by delivery of the Alternative Currency Equivalent Amount to
         the Borrowers' account with the Funding Bank.

                  (iii) Notwithstanding the foregoing, if a drawing is made
         under any Letter of Credit, such drawing is honored by the Issuing
         Bank, and the Borrowers shall not immediately fully reimburse the
         Issuing Bank in respect of such drawing from other funds available to
         the Borrowers, (A) provided that the conditions to making a Revolving
         Loan as herein provided shall then be satisfied, the Reimbursement
         Obligation arising from such drawing shall be paid to the Issuing Bank
         by the Administrative Agent without the requirement of notice to or
         from the Borrowers from immediately available funds which shall be
         advanced as a Base Rate Refunding Loan to the Administrative Agent at
         its Principal Office by each Lender under the Revolving Credit Facility
         in an amount equal to such Lender's Applicable Commitment Percentage of
         such Reimbursement Obligation, and (B) if the conditions to making a
         Revolving Loan as herein provided shall not then be satisfied, each of
         the Lenders shall fund by payment to the Administrative Agent (for the
         benefit of the

                                       32
<PAGE>   39

         Issuing Bank) at its Principal Office in immediately available funds
         the purchase from the Issuing Bank of their respective Participations
         in the related Reimbursement Obligation based on their respective
         Applicable Commitment Percentages of the Total Letter of Credit
         Commitment. If a drawing is presented under any Letter of Credit in
         accordance with the terms thereof and the Borrowers shall not
         immediately reimburse the Issuing Bank in respect thereof, then notice
         of such drawing or payment shall be provided promptly by the Issuing
         Bank to the Administrative Agent and the Administrative Agent shall
         provide notice to each Lender by telephone or telefacsimile
         transmission. If notice to the Lenders of a drawing under any Letter of
         Credit is given by the Administrative Agent at or before 12:00 noon on
         any Business Day, each Lender shall either make a Base Rate Refunding
         Loan or fund the purchase of its Participation as specified above in
         the amount of such Lender's Applicable Commitment Percentage of such
         drawing or payment and shall pay such amount to the Administrative
         Agent for the account of the Issuing Bank at the Principal Office in
         Dollars and in immediately available funds before 2:30 P.M. on the same
         Business Day. If such notice to the Lenders is given by the
         Administrative Agent after 12:00 noon on any Business Day, each Lender
         shall either make such Base Rate Refunding Loan or fund such purchase
         before 12:00 noon on the next following Business Day.

         (d) REPAYMENT OF REVOLVING LOANS The principal amount of each Revolving
Loan shall be due and payable by the respective Borrowers to the Administrative
Agent for the benefit of each Lender in full on the Revolving Credit Termination
Date, or earlier as specifically provided herein. The principal amount of any
Revolving Loan may be prepaid in whole or in part on any Business Day, upon (A)
at least three (3) Business Days' irrevocable telephonic notice in the case of
each Revolving Loan that is a Eurodollar Rate Loan from an Authorized
Representative (effective upon receipt) to the Administrative Agent prior to
10:30 A.M. and (B) irrevocable telephonic notice in the case of each Revolving
Loan that is a Base Rate Loan from an Authorized Representative (effective upon
receipt) to the Administrative Agent prior to 10:30 A.M. on the day of such
proposed repayment. The Authorized Representative shall provide the
Administrative Agent written confirmation of each such telephonic notice but
failure to provide such confirmation shall not effect the validity of such
telephonic notice. All prepayments of Revolving Loans made by the Borrowers
shall be in the amount of $2,500,000 (or the Alternative Currency Equivalent
Amount thereof if in any Alternative Currency), or such greater amount which is
an integral multiple of $500,000 (or the Alternative Currency Equivalent Amount
thereof if in any Alternative Currency), or the amount equal to all Revolving
Credit Outstandings, or such other amount as necessary to comply with SECTION
2.1(b).

         (e) REDUCTIONS. The Parent shall, by notice from an Authorized
Representative, have the right from time to time but not more frequently than
once each calendar month, upon not less than three (3) Business Days' written
notice to the Administrative Agent, effective upon receipt, to reduce the Total
Revolving Credit Commitment. The Administrative Agent shall give each Lender,
within one (1) Business Day of receipt of such notice, telefacsimile notice, or
telephonic notice (confirmed in writing), of such reduction. Each such reduction
shall be in the aggregate amount of $2,500,000 or such greater amount which is
in an integral multiple of $500,000, or the entire remaining Total Revolving
Credit Commitment, and shall permanently reduce the Total Revolving Credit

                                       33
<PAGE>   40

Commitment. Each reduction of the Total Revolving Credit Commitment shall be
accompanied by payment of the Revolving Loans (and, if necessary, effective
cancellations of Letters of Credit) to the extent that the principal amount of
Outstandings exceeds the Total Revolving Credit Commitment after giving effect
to such reduction, together with accrued and unpaid interest on the amounts
prepaid.

         (f) INCREASE IN FACILITY. The Borrowers shall be entitled to increase
the Revolving Credit Facility to up to $125,000,000 without further action of
the Lenders by one or more lenders (approved by the Administrative Agent and the
Borrowers) the Administrative Agent and the Borrowers entering into an Amendment
Agreement in substantially the form attached hereto as EXHIBIT L whereby such
lender or lenders agree to provide additional Revolving Credit Commitments of up
to $10,000,000.

         (g) PARENT OBLIGATION. The Parent, hereby irrevocably, absolutely and
unconditionally guarantees the full and punctual payment or performance when
due, whether at stated maturity, by required prepayment, declaration,
acceleration, demand or otherwise, of all Obligations of each other Borrower now
existing or hereafter arising under the Loan Documents. This guarantee
constitutes a guaranty of payment and not of collection.

         It is the intention of the parties that with respect to the Parent its
obligations under the immediately preceding paragraph shall be absolute,
unconditional and irrevocable irrespective of:

                  (i) any lack of validity, legality or enforceability of this
         Agreement, any Note, or any other Loan Document as to any other
         Borrower;

                  (ii) the failure of the Administrative Agent or the Lenders:

                                    (A) to enforce any right or remedy against
                           any other Borrower or any other Person under the
                           provisions of this Agreement, any Note, any other
                           Loan Document or otherwise, or

                                    (B) to exercise any right or remedy against
                           any guarantor of, or collateral securing, any
                           Obligations;

                  (iii) any change in the time, manner or place of payment of,
         or in any other term of, all or any of the Obligations, or any other
         extension, compromise or renewal of any Obligations with respect to any
         other Borrower;

                  (iv) any reduction, limitation, impairment or termination of
         any Obligations with respect to any other Borrower or any other Person
         for any reason including any claim of waiver, release, surrender,
         alteration or compromise, and shall not be subject to (and the Parent
         hereby waives any right to or claim of) any defense or setoff,
         counterclaim, recoupment or termination whatsoever by reason of the
         invalidity, illegality, nongenuineness,

                                       34
<PAGE>   41

         irregularity, compromise or unenforceability of, or any other event or
         occurrence affecting, any Obligations with respect to any other
         Borrower;

                  (v) any addition, exchange, release, surrender or
         nonperfection of any collateral, or any amendment to or waiver or
         release or addition of, or consent to departure from, any guaranty,
         held by the Agent or any holder of any Note securing any of the
         Obligations; or

                  (vi) any other circumstance which might otherwise constitute a
         defense available to, or a legal or equitable discharge of, any other
         Borrower, any surety or any guarantor other than the defense of payment
         in full of the Obligations.

         The Parent agrees that its joint and several liability hereunder shall
continue to be effective or be reinstated, as the case may be, if at any time
any payment (in whole or in part) of any of the Obligations is rescinded or must
be restored by the Administrative Agent, any Lender or any holder of any Note,
upon the insolvency, bankruptcy or reorganization of any other Borrower as
though such payment had not been made.

         The Parent hereby expressly waives: (a) notice of the Administrative
Agent's or any Lender's acceptance of this Agreement; (b) notice of the
existence or creation or non-payment of all or any of the Obligations; (c)
presentment, demand, notice of dishonor, protest, and all other notices
whatsoever other than notices expressly provided for in this Agreement or by
applicable law and (d) all diligence in collection or protection of or
realization upon the Obligations or any thereof, any obligation hereunder, or
any security for or guaranty of any of the foregoing.

         No delay on any of the Administrative Agent or any Lender's part in the
exercise of any right or remedy shall operate as a waiver thereof, and no single
or partial exercise by the Administrative Agent or any Lender of any right or
remedy shall preclude any other or further exercise thereof or the exercise of
any other right or remedy. No action of the Administrative Agent or any Lender
permitted hereunder shall in any way affect or impair any of its rights or any
of its obligations to any of the Borrowers under this Agreement (except as
otherwise waived, modified, or amended).

         (g) Notwithstanding anything herein to the contrary, the Borrowing
Subsidiaries shall be liable hereunder only for Advances, Loans and
Reimbursement Obligations made to it or on its behalf hereunder together with
interest relating thereto and fees and expenses arising hereunder.

         2.2 COMPETITIVE BID LOANS.

                  (a) In addition to Revolving Loans, at any time prior to the
         Revolving Credit Termination Date and provided no Default or Event of
         Default exists hereunder, the Parent may, as set forth in this SECTION
         2.2, request the Lenders to make offers to make Competitive Bid Loans
         to the Parent in Dollars. The Lenders may, but shall have no obligation
         to, make such offers and the Parent may, but shall have no obligation
         to, accept any such offers in the manner set forth in this SECTION 2.2.
         There may be no more than seven (7) different Interest Periods, plus
         one (1) seven day Interest Period (in the case of

                                       35
<PAGE>   42

         a Competitive Bid Loan) for both Eurodollar Rate Loans and Competitive
         Bid Loans outstanding at the same time (for which purpose Interest
         Periods for each Eurodollar Rate Loan and each Competitive Bid Loan
         shall be deemed to be different Interest Periods even if they are
         coterminous). Neither the aggregate Dollar Value of all Outstandings
         nor the aggregate principal amount of all outstanding Competitive Bid
         Loans shall exceed one hundred percent (100%) of the Total Revolving
         Credit Commitment at any time.

                  (b) When the Parent wishes to request offers to make
         Competitive Bid Loans, it shall give the Administrative Agent and the
         Lenders notice (a "Competitive Bid Quote Request") to be received no
         later than 11:00 a.m. on (A) the fourth Business Day prior to the date
         of borrowing proposed therein, in the case of a Competitive Bid Quote
         Request for Competitive Bid Loans at the Eurodollar Competitive Rate or
         (B) the Business Day prior to the date of borrowing proposed therein,
         in the case of a Competitive Bid Quote Request for Competitive Bid
         Loans at the Absolute Rate (or, in any such case, such other time and
         date as the Parent and the Administrative Agent, with the consent of
         the Required Lenders, may agree). The Parent may request offers to make
         Competitive Bid Loans for up to three (3) different Interest Periods in
         a single notice; PROVIDED that the request for each separate Interest
         Period shall be deemed to be a separate Competitive Bid Quote Request
         for a separate borrowing (a "Competitive Bid Borrowing") and there
         shall not be outstanding at any one time more than three (3)
         Competitive Bid Borrowings. Each such Competitive Bid Quote Request
         shall be substantially in the form of EXHIBIT G attached hereto and
         shall specify as to each Competitive Bid Borrowing:

                           (i) the proposed date of such borrowing, which shall
                  be a Business Day;

                           (ii) the aggregate amount of such Competitive Bid
                  Borrowing, which shall be at least $5,000,000 (or in
                  increments of $1,000,000 in excess thereof) but shall not
                  cause the limits specified in SECTION 2.2(a) hereof to be
                  violated;

                           (iii) the duration of the Interest Period applicable
                  thereto;

                           (iv) whether the Competitive Bid Quote Request for a
                  particular Interest Period is seeking quotes for Competitive
                  Bid Loans at the Absolute Rate or the Eurodollar Competitive
                  Rate;

                           (v) whether the Parent shall have the right to prepay
                  a requested Competitive Bid Loan; and

                           (vi) the date on which the Competitive Bid Quotes are
                  to be submitted if it is before the proposed date of borrowing
                  (the date on which such Competitive Bid Quotes are to be
                  submitted is called the "Quotation Date").

                                       36
<PAGE>   43

         Except as otherwise provided in this SECTION 2.2(b), no more than two
         (2) Competitive Bid Quote Requests shall be given within five (5)
         Business Days (or such other number of days as the Borrower and the
         Administrative Agent, with the consent of the Required Lenders, may
         agree) of any other Competitive Bid Quote Request.

                  (c) (i) Each Lender may submit one or more Competitive Bid
         Quotes, each containing an offer to make a Competitive Bid Loan in
         response to any Competitive Bid Quote Request; PROVIDED that, if the
         Parent's request under SECTION 2.2(b) hereof specified more than one
         Interest Period, such Lender may make a single submission containing
         one or more Competitive Bid Quotes for each such Interest Period. Each
         Competitive Bid Quote must be submitted to the Borrower not later than
         9:30 a.m. on (A) the third Business Day prior to the proposed date of
         borrowing, in the case of a Competitive Bid Quote Request for
         Competitive Bid Loans at the Eurodollar Competitive Rate or (B) the
         Quotation Date, in the case of a Competitive Bid Quote Request for
         Competitive Bid Loans at the Absolute Rate (or, in any such case, such
         other time and date as the Parent and the Administrative Agent, with
         the consent of the Required Lenders, may agree) PROVIDED that if Bank
         of America is receiving quotes as provided in SECTION 2.2(g), any
         Competitive Bid Quote may be submitted by Bank of America (or its
         applicable Lending Office) only if Bank of America (or such applicable
         Lending Office) notifies the Parent of the terms of the offer contained
         therein not later than 9:15 a.m. on the Quotation Date. Subject to
         ARTICLES VI, VII AND XI hereof, any Competitive Bid Quote so made shall
         be irrevocable except with the consent of the Administrative Agent
         given on the instructions of the Borrower.

                  (ii) Each Competitive Bid Quote shall be substantially in the
         form of EXHIBIT H attached hereto and shall specify:

                           (A) the proposed date of borrowing and the Interest
                  Period therefor;

                           (B) the principal amount of the Competitive Bid Loan
                  for which each such offer is being made, which principal
                  amount shall be at least $2,500,000 (or in increments of
                  $500,000 in excess thereof); PROVIDED that the aggregate
                  principal amount of all Competitive Bid Loans for which a
                  Lender submits Competitive Bid Quotes (x) may not exceed the
                  Revolving Credit Commitment of such Lender and (y) may not
                  exceed the principal amount of the Competitive Bid Borrowing
                  for a particular Interest Period for which offers were
                  requested;

                           (C) in the case of a Competitive Bid Quote for
                  Competitive Bid Loans at an Absolute Rate, the rate of
                  interest per annum (rounded upwards, if necessary, to the
                  nearest 1/10,000th of 1%) offered for each such Competitive
                  Bid Loan (the "Absolute Rate");

                           (D) in the case of a Competitive Bid Quote for
                  Competitive Bid Loans at the Eurodollar Competitive Rate, the
                  positive or negative margin to be added to

                                       37
<PAGE>   44

                  or deducted from the Interbank Offered Rate offered for each
                  such Competitive Bid Loan (the "Eurodollar Competitive Rate");
                  and

                           (E) the identity of the quoting Lender.

         Unless otherwise agreed by the Administrative Agent and the Parent, no
         Competitive Bid Quote shall contain qualifying, conditional or similar
         language or propose terms other than or in addition to those set forth
         in the applicable Competitive Bid Quote Request and, in particular, no
         Competitive Bid Quote may be conditioned upon acceptance by the
         Borrower of all (or some specified minimum) of the principal amount of
         the Competitive Bid Loan for which such Competitive Bid Quote is being
         made. Any subsequent Competitive Bid Quote submitted by a Lender that
         amends, modifies or is otherwise inconsistent with a previous
         Competitive Bid Quote submitted by such Lender with respect to the same
         Competitive Bid Quote Request shall be disregarded by the Borrower
         unless such subsequent Competitive Bid Quote is submitted solely to
         correct a manifest error in such former Competitive Bid Quote.

                  (d) The Parent shall (A) in the case of a Competitive Bid Loan
         at an Absolute Rate, as promptly as practicable after the Competitive
         Bid Quote is submitted (but in any event not later than 10:30 a.m. on
         the Quotation Date (or such other time and date as the Parent and the
         Administrative Agent, with the consent of the Required Lenders, may
         agree) or (B) in the case of a Competitive Bid Loan at a Eurodollar
         Competitive Rate, the third Business Day prior to the proposed date of
         borrowing), notify the Administrative Agent and Lenders of (A) the
         aggregate principal amount of the Competitive Bid Borrowing for which
         Competitive Bid Quotes have been received as well as the ranges of bids
         submitted for each Interest Period requested, (B) the respective
         principal amounts and Absolute Rates or Eurodollar Competitive Rates,
         as the case may be, so offered by each Lender (identifying the Lender
         that made each Competitive Bid Quote), and (C) its acceptance or
         nonacceptance of the Competitive Bid Quotes. In the case of acceptance,
         such notice shall specify the aggregate principal amount of offers for
         each Interest Period that are accepted. The Borrowers may accept any
         Competitive Bid Quote in whole or in part (PROVIDED that any
         Competitive Bid Quote accepted in part shall be at least $2,500,000 or
         in increments of $500,000 in excess thereof); PROVIDED that:

                           (i) the aggregate principal amount of each
                  Competitive Bid Borrowing may not exceed the applicable amount
                  set forth in the related Competitive Bid Quote Request;

                           (ii) the aggregate principal amount of each
                  Competitive Bid Borrowing shall be at least $5,000,000 (or an
                  increment of $1,000,000 in excess thereof) but shall not cause
                  the limits specified in SECTION 2.2(a) hereof to be violated;

                           (iii) except as provided below, acceptance of
                  Competitive Bid Quotes for any Interest Period may be made
                  only in ascending order of Absolute Rates or

                                       38
<PAGE>   45

                  Eurodollar Competitive Rates, as the case may be, beginning
                  with the lowest rate so offered; and

                           (iv) the Parent may not accept any Competitive Bid
                  Quote where such Competitive Bid Quote fails to comply with
                  SECTION 2.2(c)(ii) hereof or otherwise fails to comply with
                  the requirements of this Agreement (including, without
                  limitation, SECTION 2.2(a) hereof).

         Any of the conditions above notwithstanding, the Parent may, in its
         sole discretion, accept a Competitive Bid Quote that does not contain
         the lowest Absolute Rate or Eurodollar Competitive Rates, as the case
         may be, where acceptance of the Competitive Bid Quote containing the
         lowest Absolute Rate or Eurodollar Competitive Rate, as the case may
         be, would either (x) cause the principal amount of Outstandings payable
         to a Lender or Lenders offering the lowest Absolute Rate or Eurodollar
         Competitive Rate, as the case may be, to exceed the Revolving Credit
         Commitment of any Lender or (y) result in any increased costs to the
         Borrower under ARTICLE V.

                  If Competitive Bid Quotes are made by two or more Lenders with
         the same Absolute Rates or Eurodollar Competitive Rates, as the case
         may be, for a greater aggregate principal amount than the amount in
         respect of which Competitive Bid Quotes are accepted for the related
         Interest Period after the acceptance of all Competitive Bid Quotes, if
         any, of all lower Absolute Rates or Eurodollar Competitive Rates, as
         the case may be, offered by any Lender for such related Interest
         Period, the principal amount of Competitive Bid Loans in respect of
         which such Competitive Bid Quotes are accepted shall be allocated by
         the Parent among such Lenders as nearly as possible (in amounts of at
         least $1,000,000 or in increments of $100,000 in excess thereof) in
         proportion to the aggregate principal amount of such Competitive Bid
         Quotes. Determinations by the Parent of the amounts of Competitive Bid
         Loans and the lowest bid after adjustment as provided in SECTION
         2.2(d)(iii) shall be conclusive in the absence of manifest error.

                  (e) Any Lender whose offer to make any Competitive Bid Loan
         has been accepted shall, not later than 1:00 p.m. on the date specified
         for the making of such Loan, make the amount of such Loan available to
         the Parent at the Borrowers' Account or otherwise as shall be directed
         by the Authorized Representative in Dollars and in immediately
         available funds.

                  (f) From time to time, the Parent shall furnish such
         information to the Administrative Agent as the Administrative Agent may
         request relating to the making of Competitive Bid Loans, including the
         amounts, interest rates, dates of borrowings and maturities thereof.

                  (g) The Parent may request the Administrative Agent to receive
         the Competitive Bid Quotes, in which event the Administrative Agent
         shall (A) in the case of a Competitive Bid Loan at the Absolute Rate,
         as promptly as practicable after the Competitive Bid Quote

                                       39
<PAGE>   46

         is submitted (but in no event later than 10:00 a.m. on the Quotation
         Date) or (B) in the case of a Competitive Bid Loan at the Eurodollar
         Competitive Rate, by 10:00 a.m. on the date a Competitive Quote is
         submitted, notify the Parent of the terms of any Competitive Bid Quote
         submitted by a Lender that is in accordance with SECTION 2.2(c) hereof.
         The Administrative Agent's notice to the Parent shall specify (A) the
         aggregate principal amount of the Competitive Bid Borrowing for which
         Competitive Bid Quotes have been received and (B) the respective
         principal amounts and Absolute Rates or Eurodollar Competitive Rate, as
         the case may be, offered by each Lender (identifying the Lender that
         made each Competitive Bid Quote). Not later than 10:30 a.m. on (A) the
         third Business Day prior to the proposed date of borrowing, in the case
         of Competitive Bid Loans at the Eurodollar Competitive Rate or (B) the
         Quotation Date (or, in any such case, such other time and date as the
         Parent and the Administrative Agent, with the consent of the Required
         Lenders, may agree), the Parent shall notify the Administrative Agent
         of its acceptance or nonacceptance of the Competitive Bid Quotes so
         notified to it (and the failure of the Parent to give such notice by
         such time shall constitute nonacceptance) and the Administrative Agent
         shall promptly notify each affected Lender. Together with each notice
         of a request for Competitive Bid Quotes, which the Borrower requires
         the Administrative Agent to issue pursuant to this paragraph (g), the
         Borrower shall pay to the Administrative Agent for the account of the
         Administrative Agent a bid administration fee of $2,000.00.

                  (h) The principal amount of each Competitive Bid Loan shall be
         due and payable to the Lender making such Loan on the last day of the
         Interest Period therefor.

         2.3 USE OF PROCEEDS. The proceeds of the Loans made pursuant to the
Revolving Credit Facility and Competitive Bid Facility and Swing Line hereunder
shall be used by the Borrowers (i) for general working capital needs, Capital
Expenditures, Acquisitions and other corporate purposes and (ii) to repay the
Existing Indebtedness.

         2.4 Notes.

                  (a) REVOLVING NOTES. Revolving Loans made by each Lender shall
         be evidenced by the Revolving Note payable to the order of such Lender
         in the respective amount of its Applicable Commitment Percentage of the
         Total Revolving Credit Commitment, which Revolving Note shall be dated
         the Closing Date or a later date pursuant to an Assignment and
         Acceptance or the increase in the Total Revolving Credit Commitment and
         shall be duly completed, executed and delivered by the Borrower.

                  (b) COMPETITIVE BID NOTES. The portion of the Competitive Bid
         Loans made by each Lender shall be evidenced by the Competitive Bid
         Note payable to the order of such Lender in the respective amount of
         its Revolving Credit Commitment, which Competitive Bid Notes shall be
         dated the Closing Date or a later date pursuant to an Assignment and
         Acceptance or the increase in the Total Revolving Credit Commitment and
         shall be duly completed, executed and delivered by the Borrower.

                                       40
<PAGE>   47

                  (c) SWING LINE NOTE. The Swing Line Outstandings shall be
         evidenced by a separate Swing Line Note payable to the order of the
         Bank of America in the amount of the Swing Line, which Note shall be
         dated the Closing Date and shall be duly completed, executed and
         delivered by the Borrower.

         2.5 SWING LINE.

                  (a) Notwithstanding any other provision of this Agreement to
         the contrary, in order to administer the Revolving Credit Facility in
         an efficient manner and to minimize the transfer of funds between the
         Administrative Agent and the Lenders, Bank of America shall make
         available Swing Line Loans in Dollars only to the Borrowers prior to
         the Revolving Credit Termination Date. Bank of America shall not be
         obligated to make any Swing Line Loan pursuant hereto (i) if to the
         actual knowledge of Bank of America the respective Borrower is not in
         compliance with all the conditions to the making of Revolving Loans set
         forth in this Agreement, (ii) if after giving effect to such Swing Line
         Loan, the Swing Line Outstandings exceed $10,000,000, or (iii) if after
         giving effect to such Swing Line Loan, the Dollar Value of Outstandings
         exceeds the Total Revolving Credit Commitment. The Borrowers may,
         subject to the conditions set forth in the preceding sentence, borrow,
         repay and reborrow under this SECTION 2.5. Unless notified to the
         contrary by Bank of America, borrowings under the Swing Line shall be
         made in the minimum amount of $250,000 or, if greater, in amounts which
         are integral multiples of $50,000, or in the amount necessary to effect
         a Base Rate Refunding Loan, upon written request by telefacsimile
         transmission, effective upon receipt, by an Authorized Representative
         of the Borrower made to Bank of America not later than 12:30 P.M. on
         the Business Day of the requested borrowing. Each such Borrowing Notice
         shall specify the amount of the borrowing and the date of borrowing,
         and shall be in the form of EXHIBIT D-2, with appropriate insertions.
         Unless notified to the contrary by Bank of America, each repayment of a
         Swing Line Loan shall be in an amount which is an integral multiple of
         $50,000 or the aggregate amount of all Swing Line Outstandings.

                  (b) The interest payable on Swing Line Loans is solely for the
         account of Bank of America. Swing Line Loans shall bear interest solely
         at the Base Rate. Upon the occurrence of an Event of Default Swing Line
         Loans shall accrue interest at the Default Rate. All accrued and unpaid
         interest on Swing Line Loans shall be payable, on the dates and in the
         manner provided in SECTIONS 4.3 with respect to interest on Base Rate
         Loans.

                  (c) Upon the making of a Swing Line Loan, each Lender shall be
         deemed to have purchased from Bank of America a Participation therein
         in an amount equal to that Lender's Applicable Commitment Percentage of
         such Swing Line Loan. Upon demand made by Bank of America, each Lender
         shall, according to its Applicable Commitment Percentage of such Swing
         Line Loan, promptly provide to Bank of America its purchase price
         therefor in an amount equal to its Participation therein. Any Advance
         made by a Lender pursuant to demand of Bank of America of the purchase
         price of its Participation shall when made be deemed to be (i) provided
         that the conditions to making Revolving Loans shall be satisfied,

                                       41
<PAGE>   48

         a Base Rate Refunding Loan under SECTION 2.1, and (ii) in all other
         cases, the funding by each Lender of the purchase price of its
         Participation in such Swing Line Loan. The obligation of each Lender to
         so provide its purchase price to Bank of America shall be absolute and
         unconditional and shall not be affected by the occurrence of an Event
         of Default or any other occurrence or event.

         The Borrowers, at their option and subject to the terms hereof, may
request an Advance pursuant to SECTION 2.1 in an amount sufficient to repay
Swing Line Outstandings on any date and the Administrative Agent shall provide
from the proceeds of such Advance to Bank of America the amount necessary to
repay such Swing Line Outstandings (which Bank of America shall then apply to
such repayment) and credit any balance of the Advance in immediately available
funds in the manner directed by the Borrowers pursuant to SECTION 2.1(c)(ii).
The proceeds of such Advances shall be paid to Bank of America for application
to the Swing Line Outstandings and the Lenders shall then be deemed to have made
Loans in the amount of such Advances. The Swing Line shall continue in effect
until the Revolving Credit Termination Date, at which time all Swing Line
Outstandings and accrued interest thereon shall be due and payable in full.

         2.6 TERMINATION OF TOTAL COMMITMENT; CHANGE IN CONTROL. The Parent
shall give written notice to the Administrative Agent of the occurrence of any
Change in Control promptly after the senior management of the Parent obtains
knowledge thereof, and shall offer to terminate the commitments of all of the
Lenders and repay all outstanding Obligations on a date specified in such
notice, which shall be not less than thirty (30) nor more than forty-five (45)
days after the date of such notice, or such earlier time as provided for such
notice in the change of control provision of any other instrument relating to
Indebtedness or agreement for the securitization or other sale of receivables to
which the Parent or any Subsidiary is a party, but in any event shall not be
later than the effective date of the Change in Control. The Administrative Agent
shall provide to each Lender a copy of such written notice promptly after its
receipt thereof. Such notice by the Parent also shall specify the date by which
each Lender that wishes to accept such offer must deliver notice to the Parent
(with a copy to the Administrative Agent) of such acceptance, which date shall
be no earlier than twenty (20) and no later than ten (10) days prior to the date
of the proposed termination, or such earlier time as provided for such notice in
the change of control provision of any other instrument relating to Indebtedness
or agreement for the securitization or other sale of receivables to which the
Parent or any Subsidiary is a party. If any Lender shall accept such offer, then
on the date so specified, or such earlier time as provided for repayment in the
change of control provision of any other instrument relating to Indebtedness or
agreement for the securitization or other sale of receivables to which the
Parent or any Subsidiary is a party, the commitment of such Lender shall
terminate on the date so specified in the Parent's notice (which date shall
become the Revolving Credit Termination Date for those Lenders for all purposes
hereunder), any Loans owing to such Lenders (together with accrued interest
thereon and all accrued fees, including, without limitation any fees incurred
pursuant to SECTION 12.9) then outstanding shall be due and payable on such
date, all Reimbursement Obligations of such Lender and such Participations shall
be cash collateralized and the Revolving Credit Commitment of such Lender shall
automatically and permanently be reduced by all such amounts.

                                       42
<PAGE>   49

         2.7 DESIGNATION OF BORROWING SUBSIDIARIES. The Parent may within the
six month period following the Closing Date designate either or both of
Sensormatic, B.V., a subsidiary organized under the laws of the Netherlands, or
Sensormatic Cayman, L.P., a limited partnership organized under the laws of the
Cayman Islands as a "Borrowing Subsidiary" hereunder by causing (i) such
Subsidiary to execute and deliver a duly completed Assumption Letter in
substantially the form attached hereto as EXHIBIT K (the "Assumption Letter") to
the Administrative Agent, with the written consent of the Parent at the foot
thereof and (ii) the delivery to the Administrative Agent of those items with
respect to such Borrowing Subsidiary described in SECTION 6.1(a). A Subsidiary
may cease to be a Borrowing Subsidiary hereunder by payment in full of all
Obligations of such Borrowing Subsidiary and written notice to the
Administrative Agent of its termination of its rights hereunder as provided in
the Assumption Letter.

                                       43
<PAGE>   50

                                   ARTICLE III

                               LETTERS OF CREDIT

         3.1 LETTERS OF CREDIT. (a) The Issuing Bank agrees, subject to the
terms and conditions of this Agreement, upon request of any Borrower to issue
from time to time for the account of such Borrower Letters of Credit upon
delivery to the Issuing Bank of an Application and Agreement for Letter of
Credit relating thereto in form and content acceptable to the Issuing Bank;
PROVIDED, that (i) the Issuing Bank shall not be obligated to issue (or renew)
any Letter of Credit if it has been notified by the Administrative Agent or has
actual knowledge that a Default or Event of Default has occurred and is
continuing, (ii) the Letter of Credit Outstandings shall not exceed the Total
Letter of Credit Commitment and (iii) no Letter of Credit shall be issued (or
renewed) if, after giving effect thereto, the Dollar Value of Outstandings shall
exceed the Total Revolving Credit Commitment. No Letter of Credit shall have an
expiry date (including all rights of the respective Borrower or any beneficiary
named in such Letter of Credit to require renewal) or payment date occurring
later than the earlier to occur of one year after the date of its issuance or
the seventh Business Day prior to the Stated Termination Date. The Borrowers,
the Administrative Agent and the Lenders acknowledge and agree that the Existing
Letters of Credit are deemed Letters of Credit issued under and pursuant to this
Agreement as if they had been issued on the Closing Date, provided, Bank Boston,
N.A. shall have no obligation to extend or renew any Existing Letters of Credit.

         (b) Upon completion of a proper Application and Agreement for Letter of
Credit, the Issuing Bank may issue upon request and for the account of one or
more of Borrowers' Letters of Credit payable in an Alternative Currency. For
purposes of determining Letters of Credit Outstandings, any Letter of Credit
issued in an Alternative Currency shall be recorded in the Administrative
Agent's account in Dollars based on the Alternative Currency Equivalent Amount
on the date of issuance of such Letter of Credit; PROVIDED, HOWEVER, that the
Administrative Agent shall determine the Dollar Equivalent Amount of any Letter
of Credit issued in an Alternative Currency on the date of any drawing under a
Letter of Credit or any Advance or Continuation for the purpose of determining
the Dollar Value of Letter of Credit Outstandings. Any draw on a Letter of
Credit issued in an Alternative Currency shall be repaid in the same Alternative
Currency in an amount equal to the amount of the draw in such Alternative
Currency. To the extent that the Administrative Agent shall determine at any
time that the sum of (i) the Dollar Value of Outstandings, in each case
determined on any Valuation Date, made or issued in Alternative Currencies
exceeds the Total Alternative Currency Commitment, the Borrowers shall
immediately repay Alternative Currency Loans so that after giving effect to such
payment the Dollar Value outstanding Alternative Currency Loans plus the Dollar
Value of outstanding Letters of Credit issued in Alternative Currencies does not
exceed the Total Alternative Currency Commitment. If at any time the Letter of
Credit Outstandings shall exceed the Total Letter of Credit Commitment the
Borrower shall, in its discretion, either (i) cause to be terminated Letters of
Credit or (ii) cash collateralize Letters of Credit so that as a result the
amount of Letter of Credit Outstandings do not exceed the Total Letter of Credit
Commitment.

                                       44

<PAGE>   51

         3.2 REIMBURSEMENT AND PARTICIPATIONS.

                  (a) The Borrower for whose account a Letter of Credit has been
         issued hereby unconditionally agrees to pay to the Issuing Bank
         immediately on demand at the Principal Office (i) in Dollars with
         respect to Letters of Credit issued in Dollars, and (ii) in the
         applicable Alternative Currency, in the case of Letters of Credit
         issued in Alternative Currencies all amounts required to pay all drafts
         drawn or purporting to be drawn under such Letters of Credit and all
         reasonable expenses incurred by the Issuing Bank in connection with the
         Letters of Credit, and in any event and without demand to place in
         possession of the Issuing Bank (which shall include Advances under the
         Revolving Credit Facility if permitted by SECTION 2.1 and Swing Line
         Loans if permitted by SECTION 2.5) sufficient funds to pay all drawings
         arising under any Letter of Credit. The Issuing Bank agrees to give the
         Borrowers prompt notice of any request for a draw under a Letter of
         Credit. To the extent permitted by SECTION 2.1(c)(iii) and SECTION 2.5,
         all amounts the Issuing Bank pays under a Letter of Credit, plus
         charges and reasonable expenses as time to time agreed to by the
         Issuing Bank and the Borrower shall be paid pursuant to Advances under
         the Revolving Credit Facility or, if the Borrower shall elect, by Swing
         Line Loans. The Borrowers agree to pay the Issuing Bank interest on any
         Reimbursement Obligations not paid when due hereunder at the Default
         Rate.

                  (b) In accordance with the provisions of SECTION 2.1(c), the
         Issuing Bank shall notify the Administrative Agent of any drawing under
         any Letter of Credit promptly following the receipt by the Issuing Bank
         of such drawing.

                  (c) Each Lender (other than the Issuing Bank) shall
         automatically acquire on the date of issuance thereof, a Participation
         in the liability of the Issuing Bank in respect of each Letter of
         Credit in an amount equal to the Dollar Value such Lender's Applicable
         Commitment Percentage of such liability, and to the extent that any
         Borrower is obligated to pay the Issuing Bank under SECTION 3.2(a),
         each Lender (other than the Issuing Bank) thereby shall absolutely,
         unconditionally and irrevocably assume, and shall be unconditionally
         obligated to pay to the Issuing Bank in Dollars, its Applicable
         Commitment Percentage of the liability of the Issuing Bank under such
         Letter of Credit in the manner and with the effect provided in SECTION
         2.1(c)(iii).

                  (d) Simultaneously with the making of each payment by a Lender
         to the Issuing Bank pursuant to SECTION 2.1(c)(iii)(B), such Lender
         shall, automatically and without any further action on the part of the
         Issuing Bank or such Lender, acquire a Participation in an amount equal
         to such payment (excluding the portion thereof constituting interest
         accrued prior to the date the Lender made its payment) in the related
         Reimbursement Obligation of the Borrowers. Each Lender's obligation to
         make payment to the Administrative Agent for the account of the Issuing
         Bank pursuant to SECTION 2.1(c)(iii) and SECTION 3.2(c), and the right
         of the Issuing Bank to receive the same, shall be absolute and
         unconditional, shall not be affected by any circumstance whatsoever and
         shall be made without any offset, abatement, withholding or reduction
         whatsoever. In the event the Lenders have purchased Participations in
         any Reimbursement Obligation as set forth above, then at any time
         payment (in fully collected, immediately available funds) of such
         Reimbursement Obligation, in

                                       45
<PAGE>   52

         whole or in part, is received by the Issuing Bank from the Borrowers,
         the Issuing Bank shall promptly pay to each Lender an amount equal to
         its Applicable Commitment Percentage of such payment from the
         Borrowers.

                  (e) Promptly following the end of each calendar quarter, the
         Issuing Bank shall deliver to the Administrative Agent a notice
         describing the aggregate undrawn amount of all Letters of Credit at the
         end of such quarter. Upon the request of any Lender from time to time,
         the Issuing Bank shall deliver to the Administrative Agent, and the
         Administrative Agent shall deliver to such Lender, any other
         information reasonably requested by such Lender with respect to each
         outstanding Letter of Credit.

                  (f) The issuance by the Issuing Bank of each Letter of Credit
         shall, in addition to the conditions precedent set forth in ARTICLE VI,
         be subject to the conditions that such Letter of Credit be in such form
         and contain such terms as shall be reasonably satisfactory to the
         Issuing Bank consistent with the then current practices and procedures
         of the Issuing Bank with respect to similar letters of credit, and the
         Borrowers shall have executed and delivered such other instruments and
         agreements relating to such Letters of Credit as the Issuing Bank shall
         have reasonably requested consistent with such practices and
         procedures. All Letters of Credit shall be issued pursuant to and
         subject to the Uniform Customs and Practice for Documentary Credits,
         1993 revision, International Chamber of Commerce Publication No. 500
         or, if the Issuing Bank and the respective Borrower shall agree by
         express reference in an affected Letter of Credit, the International
         Chamber of Commerce International Standby Practices commonly referred
         to as "ISP98," or any subsequent amendment or revision of either
         thereof.

                  (g) Each Borrower agrees that the Issuing Bank may, in its
         sole discretion, accept or pay, as complying with the terms of any
         Letter of Credit, any drafts or other documents otherwise in order
         which may be signed or issued by an administrator, executor, trustee in
         bankruptcy, debtor in possession, assignee for the benefit of
         creditors, liquidator, receiver, attorney in fact or other legal
         representative of a party who is authorized under such Letter of Credit
         to draw or issue any drafts or other documents.

                  (h) Without limiting the generality of the provisions of
         SECTION 12.9, the Parent and the Borrower (if other than the Parent)
         for whose account a Letter of Credit is issued hereby agrees to
         indemnify and hold harmless the Issuing Bank, each other Lender and the
         Administrative Agent from and against any and all claims and damages,
         losses, liabilities, reasonable costs and expenses which the Issuing
         Bank, such other Lender or the Administrative Agent may incur (or which
         may be claimed against the Issuing Bank, such other Lender or the
         Administrative Agent) by any Person by reason of or in connection with
         the issuance or transfer of or payment or failure to pay under such
         Letter of Credit; provided that the Borrowers shall not be required to
         indemnify the Issuing Bank, any other Lender or the Administrative
         Agent for any claims, damages, losses, liabilities, costs or expenses
         to the extent, but only to the extent, (i) caused by the willful
         misconduct or gross negligence of the party to be indemnified or (ii)
         caused by the failure of the Issuing Bank to pay under any

                                       46
<PAGE>   53

         Letter of Credit after the presentation to it of a request for payment
         strictly complying with the terms and conditions of such Letter of
         Credit, unless such payment is prohibited by any law, regulation, court
         order or decree. The indemnification and hold harmless provisions of
         this SECTION 3.2(h) shall survive repayment of the Obligations,
         occurrence of the Revolving Credit Termination Date, the Facility
         Termination Date and expiration or termination of this Agreement.

                  (i) Without limiting Borrowers' rights as set forth in SECTION
         3.2(h), the obligation of each Borrower to immediately reimburse the
         Issuing Bank for drawings made under Letters of Credit issued for the
         account of such Borrower and the Issuing Bank's right to receive such
         payment shall be absolute, unconditional and irrevocable, and such
         obligations of the Borrowers shall be performed strictly in accordance
         with the terms of this Agreement and such Letters of Credit and the
         related Application and Agreement for any Letter of Credit, under all
         circumstances whatsoever, including the following circumstances:

                           (i) any lack of validity or enforceability of the
                  Letter of Credit, the obligation supported by the Letter of
                  Credit or any other agreement or instrument relating thereto
                  (collectively, the "Related LC Documents");

                           (ii) any amendment or waiver of or any consent to or
                  departure from all or any of the Related LC Documents;
                  provided that the Issuing Bank shall not amend a Letter of
                  Credit without the written consent of the Borrower for whose
                  benefit such Letter of Credit is issued;

                           (iii) the existence of any claim, setoff, defense
                  (other than the defense of payment in accordance with the
                  terms of this Agreement) or other rights which the Borrowers
                  may have at any time against any beneficiary or any transferee
                  of a Letter of Credit (or any persons or entities for whom any
                  such beneficiary or any such transferee may be acting), the
                  Administrative Agent, the Lenders or any other Person, whether
                  in connection with the Loan Documents, the Related LC
                  Documents or any unrelated transaction;

                           (iv) any breach of contract or other dispute between
                  the Borrower and any beneficiary or any transferee of a Letter
                  of Credit (or any persons or entities for whom such
                  beneficiary or any such transferee may be acting), the
                  Administrative Agent, the Lenders or any other Person;

                           (v) any draft, statement or any other document
                  presented under the 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
                  whatsoever;

                           (vi) any delay, extension of time, renewal,
                  compromise or other indulgence or modification granted or
                  agreed to by the Administrative Agent, with

                                       47
<PAGE>   54

                  or without notice to or approval by the Borrowers in respect
                  of any of Borrowers' Obligations under this Agreement; or

                           (vii) any other circumstance or happening whatsoever,
                  whether or not similar to any of the foregoing.

                                       48
<PAGE>   55

                                   ARTICLE IV

               EURODOLLAR FUNDING, FEES, AND PAYMENT CONVENTIONS

         4.1 INTEREST RATE OPTIONS. Eurodollar Rate Loans and Base Rate Loans
may be outstanding at the same time and, so long as no Default or Event of
Default shall have occurred and be continuing, the Borrowers shall have the
option to elect the Type of Loan and the duration of the initial and any
subsequent Interest Periods and to Convert Revolving Loans in accordance with
SECTIONS 2.1(c)(i) AND 4.2, as applicable; PROVIDED, HOWEVER, (a) there shall
not be outstanding at any one time Eurodollar Rate Loans and Competitive Bid
Loans having more than seven (7) different Interest Periods, (b) each Eurodollar
Rate Loan (including each Conversion into and each Continuation as a Eurodollar
Rate Loan) shall be in an amount of $5,000,000 (or the equivalent thereof if in
any Alternative Currency) or, if greater than $5,000,000, an integral multiple
of $1,000,000 (or the equivalent thereof if in any Alternative Currency), and
(c) no Eurodollar Rate Loan shall have an Interest Period that extends beyond
the Stated Termination Date. If the Parent's senior, unsecured, unenhanced
Indebtedness ceases to have a Rating, the Borrowers shall not be entitled to
select Eurodollar Rate Loans and at the end of any then existing Interest Period
for a Eurodollar Rate Loan, such Loan shall convert to Base Rate Loan. If the
Administrative Agent does not receive a Borrowing Notice or an Interest Rate
Selection Notice giving notice of election of the duration of an Interest Period
or of Conversion of any Loan to or Continuation of a Loan as a Eurodollar Rate
Loan by the time prescribed by SECTIONS 2.1(c)(i) and 4.2, as applicable (x) in
the case of Loans denominated in Dollars, the respective Borrower shall be
deemed to have elected to obtain or Convert such Loan to (or Continue such Loan
as) a Base Rate Loan until such Borrower notifies the Administrative Agent in
accordance with SECTION 4.2 and (y) in the case of Alternative Currency Loans,
the provisions of SECTION 2.1(b) shall apply. The Borrowers shall not be
entitled to elect to Continue any Loan as or Convert any Loan into a Eurodollar
Rate Loan or a Competitive Bid Loan if a Default or Event of Default shall have
occurred and be continuing.

         4.2 CONVERSIONS AND ELECTIONS OF SUBSEQUENT INTEREST PERIODS. Subject
to the limitations set forth in the definition of "Interest Period" and in
SECTION 4.1 and ARTICLE V, the Borrower may:

                  (a) upon delivery of telephonic notice to the Administrative
         Agent (which shall be irrevocable) on or before 10:30 A.M. on any
         Business Day, Convert any Eurodollar Rate Loan (other than an
         Alternative Currency Loan) to a Base Rate Loan on the last day of the
         Interest Period for such Eurodollar Rate Loan; and

                  (b) provided that no Default or Event of Default shall have
         occurred and be continuing, upon delivery of telephonic notice to the
         Administrative Agent (which shall be irrevocable) on or before 10:30
         A.M. three (3) Business Days', or in the case of Alternative Currency
         Loans, four (4) Business Days' prior to the date of such Conversion or
         Continuation:

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<PAGE>   56

                           (i) elect a subsequent Interest Period for any
                  Eurodollar Rate Loan to begin on the last day of the then
                  current Interest Period for such Eurodollar Rate Loan; or

                           (ii) Convert any Base Rate Loan to a Eurodollar Rate
                  Loan on any Business Day.

Each such notice shall be effective upon receipt by the Administrative Agent,
shall specify the Borrower, the amount of the Eurodollar Rate Loan affected, the
type of Loan affected, and, if a Continuation as or Conversion into a Eurodollar
Rate Loan, the Interest Period to be used in the computation of interest. The
Authorized Representative shall provide the Administrative Agent written
confirmation of each such telephonic notice in the form of a Borrowing Notice or
Interest Rate Selection Notice (as applicable) with appropriate insertions but
failure to provide such confirmation shall not affect the validity of such
telephonic notice. Notice of receipt of such Borrowing Notice or Interest Rate
Selection Notice, as the case may be, shall be provided by the Administrative
Agent to each Lender by telefacsimile transmission with reasonable promptness,
but (provided the Administrative Agent shall have received such notice by 10:30
A.M.) not later than 1:00 P.M. on the same day as the Administrative Agent's
receipt of such notice. All such Continuations or Conversions of Loans shall be
effected pro rata based on the Applicable Commitment Percentages of the Lenders.

         4.3 PAYMENT OF INTEREST. The Borrowers shall pay interest on the
outstanding and unpaid principal amount of each Loan, commencing on the first
date of such Loan until such Loan shall be repaid, at the applicable Base Rate
or Eurodollar Rate as designated by a Borrower in the related Borrowing Notice
or Interest Rate Selection Notice or as otherwise provided hereunder. Interest
on each Loan shall be paid on the earlier of (a) in the case of any Base Rate
Loan, quarterly in arrears of the last Business Day of each March, June,
September and December, commencing on December 31, 1999, until the Revolving
Credit Termination Date, at which date as applicable the entire principal amount
of and all accrued interest on the Revolving Loans shall be paid in full, (b) in
the case of any Eurodollar Rate Loan and Competitive Bid Loan, on last day of
the applicable Interest Period for such Eurodollar Rate Loan and Competitive Bid
Loan and if such Interest Period extends for more than three (3) months, at
intervals of three (3) months after the first day of such Interest Period, and
(c) the Revolving Credit Termination Date; PROVIDED, HOWEVER, that if any Event
of Default shall occur and be continuing, all amounts outstanding hereunder
shall bear interest thereafter until paid in full at the Default Rate.

         4.4 PREPAYMENTS OF EURODOLLAR RATE LOANS AND COMPETITIVE BID LOANS.
Whenever any payment of principal shall be made in respect of any Loan
hereunder, whether at maturity, on acceleration, by optional or mandatory
prepayment or as otherwise required or permitted hereunder, with the effect that
any Eurodollar Rate Loan or Competitive Bid Loan shall be prepaid in whole or in
part prior to the last day of the Interest Period applicable to such Eurodollar
Rate Loan or Competitive Bid Loan, such payment of principal shall be
accompanied by the additional payment, if any, required by SECTION 5.5.

                                       50
<PAGE>   57

         4.5 MANNER OF PAYMENT.

                  (a) Each payment of principal (including any prepayment) and
         payment of interest and fees, and any other amount required to be paid
         by or on behalf of the Borrowers to the Lenders, the Issuing Bank, the
         Administrative Agent, or Bank of America with respect to any (i) Loan
         (other than a Competitive Bid Loan and a Revolving Loan in an
         Alternative Currency), Letter of Credit (other than one denominated in
         an Alternative Currency), Reimbursement Obligation or Swing Line Loan,
         shall be made to the Administrative Agent at the Principal Office in
         Dollars, (ii) Loan or Letter of Credit in an Alternative Currency,
         shall be made in the Alternative Currency, and (iii) Competitive Bid
         Loan shall be made to the Lender making each Competitive Bid Loan at
         its Applicable Lending Office, in each case in immediately available
         funds without condition or deduction for any setoff, recoupment,
         deduction or counterclaim on or before 12:30 P.M. on the date such
         payment is due.

                  (b) Any payment made by or on behalf of a Borrower that is not
         made in Dollars or the applicable Alternative Currency, as the case may
         be, in immediately available funds and prior to 12:30 P.M. on the date
         such payment is to be made shall constitute a non-conforming payment.
         Any such non-conforming payment shall not be deemed to be received
         until the later of (i) the time such funds become available funds and
         (ii) the next Business Day. Any non-conforming payment may constitute
         or become a Default or Event of Default as otherwise provided herein.
         Interest shall continue to accrue at the Default Rate on any principal
         or fees as to which no payment or a non-conforming payment is made from
         the date such amount was due and payable until the later of (i) the
         date such funds become available funds or (ii) the next Business Day.

                  (c) In the event that any payment hereunder or under any of
         the Notes becomes due and payable on a day other than a Business Day,
         then such due date shall be extended to the next succeeding Business
         Day unless provided otherwise under the definition of "Interest
         Period"; PROVIDED, however, that interest shall continue to accrue
         during the period of any such extension; and PROVIDED further, however,
         that in no event shall any such due date be extended beyond the
         Revolving Credit Termination Date.

         4.6 Fees.

                  (a) FACILITY FEES. For the period beginning on the Closing
         Date and ending on the Revolving Credit Termination Date, the Borrowers
         agree to pay to the Administrative Agent, for the benefit of each
         Lender a facility fee equal to the Applicable Facility Fee multiplied
         by the Revolving Credit Commitment of such Lender. Such fees shall be
         due in arrears on the last Business Day of each March, June, September
         and December commencing December 31, 1999 to and on the Revolving
         Credit Termination Date. Notwithstanding the foregoing, so long as any
         Lender fails to make available any portion of its Revolving Credit
         Commitment when requested, such Lender shall not be entitled to receive
         payment of its pro rata share of such fees until such Lender shall make
         available such portion.

                                       51
<PAGE>   58

                  (b) LETTER OF CREDIT FACILITY FEES. The Borrowers shall pay to
         the Administrative Agent, for the pro rata benefit of the Lenders based
         on their Applicable Commitment Percentages, a fee on the aggregate
         Dollar Value of the amount available to be drawn on each outstanding
         Letter of Credit at a rate equal to the Applicable Margin for
         Eurodollar Rate Loans. Such fees shall be due with respect to each
         Letter of Credit quarterly in arrears on the last day of each March,
         June, September and December, the first such payment to be made on the
         first such date occurring after the date of issuance of a Letter of
         Credit.

                  (c) LETTER OF CREDIT FRONTING AND ADMINISTRATIVE FEES. The
         Borrowers shall pay to the Issuing Bank a fronting fee of one-eighth
         percent per annum (1/8%) on the aggregate amount available to be drawn
         on each outstanding Letter of Credit (other than the Existing Letters
         of Credit), such fee to be payable quarterly in arrears with respect to
         each Letter of Credit on the dates established in SECTION 4.6(b) for
         the payment of Letter of Credit facility fees with respect to such
         Letter of Credit. The Borrowers shall also pay to the Issuing Bank such
         administrative fee and other fees, if any, in connection with the
         Letters of Credit in such amounts and at such times as the Issuing Bank
         and the Borrowers shall agree from time to time.

                  (d) AGENT FEES. The Borrowers agree to pay to the
         Administrative Agent, for the Administrative Agent's individual
         account, an annual Administrative Agent's fee as set forth in the
         letter dated October 29, 1999 from the Administrative Agent to the
         Parent.

         4.7 PRO RATA PAYMENTS. Except as otherwise specified herein, (a) each
payment on account of the principal of and interest on Loans, the fees described
in SECTION 4.6(a) and (b), and Swing Line Loans and Reimbursement Obligations as
to which the Lenders have funded their respective Participations which remain
outstanding, shall be made to the Administrative Agent for the account of the
Lenders pro rata based on their Applicable Commitment Percentages, and (b) the
Administrative Agent will promptly distribute to the Lenders in immediately
available funds payments received in fully collected, immediately available
funds from the Borrower.

         4.8 COMPUTATION OF RATES AND FEES. Except as may be otherwise expressly
provided, all interest rates (including the Base Rate, each Eurodollar Rate,
Absolute Rate and Eurodollar Competitive Rate and the Default Rate) and fees
shall be computed on the basis of a year of 360 days and calculated for actual
days elapsed.

         4.9 DEFICIENCY ADVANCES; FAILURE TO PURCHASE PARTICIPATIONS. No Lender
shall be responsible for any default of any other Lender in respect to such
other Lender's obligation to make any Loan or Advance hereunder or to fund its
purchase of any Participation hereunder nor shall the Revolving Credit
Commitment or Letter of Credit Commitment of any Lender hereunder be increased
as a result of such default of any other Lender. Without limiting the generality
of the foregoing or the provisions of SECTION 4.10, in the event any Lender
shall fail to advance funds to the Borrower as herein provided, the
Administrative Agent may in its discretion, but shall not be obligated to,
advance under the applicable Note in its favor as a Lender all or any portion of
such amount or amounts (each, a "deficiency advance") and shall thereafter be
entitled to payments from

                                       52
<PAGE>   59

the Borrower of principal of and interest on such deficiency advance in the same
manner and at the same interest rate or rates to which such other Lender would
have been entitled had it made such Advance under its Note; provided that, (i)
such defaulting Lender shall not be entitled to receive payments of principal,
interest or fees with respect to such deficiency advance until such deficiency
advance (together with interest thereon as provided in clause (ii)) shall be
paid by such Lender and (ii) upon payment to the Administrative Agent from such
other Lender of the entire outstanding amount of each such deficiency advance,
together with accrued and unpaid interest thereon, from the most recent date or
dates interest was paid to the Administrative Agent by a Borrower on each Loan
comprising the deficiency advance at the Federal Funds Rate, then such payment
shall be credited against the applicable Note of the Administrative Agent in
full payment of such deficiency advance and such Borrower shall be deemed to
have borrowed the amount of such deficiency advance from such other Lender as of
the most recent date or dates, as the case may be, upon which any payments of
interest were made by such Borrower thereon. In the event any Lender shall fail
to fund its purchase of a Participation after notice from the Issuing Bank or
Bank of America as the Swing Line lender, as applicable, such Lender shall pay
to the Issuing Bank or Bank of America as the Swing Line lender, as applicable,
such amount on demand, together with interest at the Federal Funds Rate on the
amount so due from the date of such notice to the date such purchase price is
received by the Issuing Bank or Bank of America as the Swing Line lender, as
applicable.

         4.10 INTRADAY FUNDING. Without limiting the provisions of SECTION 4.9,
unless the Borrowers or any Lender has notified the Administrative Agent not
later than 12:00 Noon on the Business Day before the date any payment (including
in the case of Lenders any Advance) to be made by it is due, that it does not
intend to remit such payment, the Administrative Agent may, in its discretion,
assume that a Borrower or each Lender, as the case may be, has timely remitted
such payment in the manner required hereunder and may, in its discretion and in
reliance thereon, make available such payment (or portion thereof) to the Person
entitled thereto as otherwise provided herein. If such payment was not in fact
remitted to the Administrative Agent in the manner required hereunder, then:

                  (i) if a Borrower failed to make such payment, each Lender
         shall forthwith on demand repay to the Administrative Agent the amount
         of such assumed payment made available to such Lender, together with
         interest thereon in respect of each day from and including the date
         such amount was made available by the Administrative Agent to such
         Lender to the date such amount is repaid to the Administrative Agent at
         the Federal Funds Rate; and

                  (ii) if any Lender failed to make such payment, the
         Administrative Agent shall be entitled to recover such corresponding
         amount forthwith upon the Administrative Agent's demand therefor, the
         Administrative Agent promptly shall notify the respective Borrower, and
         such Borrower shall promptly pay such corresponding amount to the
         Administrative Agent in immediately available funds upon receipt of
         such demand. The Administrative Agent also shall be entitled to recover
         interest on such corresponding amount in respect of each day from the
         date such corresponding amount was made available by the Administrative
         Agent to a Borrower to the date such corresponding amount is recovered
         by the

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<PAGE>   60

         Administrative Agent, (A) from such Lender at a rate per annum equal to
         the daily Federal Funds Rate or (B) from the Borrowers, at a rate per
         annum equal to the interest rate applicable to the Loan which includes
         such corresponding amount. Until the Administrative Agent shall recover
         such corresponding amount together with interest thereon, such
         corresponding amount shall constitute a deficiency advance within the
         meaning of SECTION 4.9. Nothing herein shall be deemed to relieve any
         Lender from its obligation to fulfill its commitments hereunder or to
         prejudice any rights which the Administrative Agent or the Borrowers
         may have against any Lender as a result of any default by such Lender
         hereunder. Any Lender which shall fail to make available its portion of
         any Advance shall not be entitled to receive any payment pursuant to
         SECTION 5.5(b) by reason of the failure of the Borrower to borrow
         hereunder.

                                       54

<PAGE>   61
                                    ARTICLE V

                             CHANGE IN CIRCUMSTANCES

         5.1      INCREASED COST AND REDUCED RETURN.

                  (a) If, after the date hereof, the adoption of any applicable
         law, rule, or regulation, or any change in any applicable law, rule, or
         regulation, or any change in the interpretation or administration
         thereof by any governmental authority, central bank, or comparable
         agency charged with the interpretation or administration thereof, or
         compliance by any Lender (or its Applicable Lending Office) with any
         request or directive (whether or not having the force of law) of any
         such governmental authority, central bank, or comparable agency:

                           (i) shall subject such Lender (or its Applicable
                  Lending Office) to any tax, duty, or other charge with respect
                  to any Eurodollar Rate Loans or Competitive Bid Loans, its
                  Notes, or its obligation to make Eurodollar Rate Loans or
                  Competitive Bid Loans, or change the basis of taxation of any
                  amounts payable to such Lender (or its Applicable Lending
                  Office) under this Agreement or its Notes in respect of any
                  Eurodollar Rate Loans or Competitive Bid Loans (other than
                  taxes imposed on the overall net income of such Lender by the
                  jurisdiction in which such Lender has its principal office or
                  such Applicable Lending Office);

                           (ii) shall impose, modify, or deem applicable any
                  reserve, special deposit, assessment, or similar requirement
                  (other than the Reserve Requirement utilized in the
                  determination of the Eurodollar Rate) relating to any
                  extensions of credit or other assets of, or any deposits with
                  or other liabilities or commitments of, such Lender (or its
                  Applicable Lending Office), including the Revolving Credit
                  Commitment of such Lender hereunder; or

                           (iii) shall impose on such Lender (or its Applicable
                  Lending Office) or on the London interbank market any other
                  condition affecting this Agreement or its Note or any of such
                  extensions of credit or liabilities or commitments;

         and the result of any of the foregoing is to increase the cost to such
         Lender (or its Applicable Lending Office) of making, Converting into,
         Continuing, or maintaining any Loans or to reduce any sum received or
         receivable by such Lender (or its Applicable Lending Office) under this
         Agreement or its Note with respect to any Eurodollar Rate Loans or
         Competitive Bid Loans, then the Borrowers shall pay to such Lender on
         demand such amount or amounts as will compensate such Lender for such
         increased cost or reduction. If any Lender requests compensation by the
         Borrowers under this SECTION 5.1(a), the Borrowers may, by notice to
         such Lender (with a copy to the Administrative Agent), suspend the
         obligation of such Lender to make or Continue Loans of the Type with
         respect to which such compensation is requested, or to Convert Loans of
         any other Type into Loans of such Type, until the event or condition
         giving rise to such request ceases to be in effect (in which case the
         provisions

                                       55

<PAGE>   62

         of SECTION 5.4 shall be applicable); PROVIDED that such suspension
         shall not affect the right of such Lender to receive the compensation
         so requested; PROVIDED, FURTHER, that the Borrowers shall not be liable
         for payment of any such amount if the Lender does not demand payment of
         such amount within 180 days of such lender becoming aware of the event
         giving rise to the reduction of the rate or return.

                  (b) If, after the date hereof, any Lender shall have
         determined that the adoption of any applicable law, rule, or regulation
         regarding capital adequacy or any change therein or in the
         interpretation or administration thereof by any governmental authority,
         central bank, or comparable agency charged with the interpretation or
         administration thereof, or any request or directive regarding capital
         adequacy (whether or not having the force of law) of any such
         governmental authority, central bank, or comparable agency, has or
         would have the effect of reducing the rate of return on the capital of
         such Lender or any corporation controlling such Lender as a consequence
         of such Lender's obligations hereunder to a level below that which such
         Lender or such corporation could have achieved but for such adoption,
         change, request, or directive (taking into consideration its policies
         with respect to capital adequacy), then from time to time upon demand
         the Borrowers shall pay to such Lender such additional amount or
         amounts as will compensate such Lender for such reduction; provided
         that the Borrowers shall not be liable for payment of any such amount
         if the Lender does not demand payment of such amount within 180 days of
         such Lender becoming aware of the event giving rise to the reduction of
         the rate or return.

                  (c) Without limiting the foregoing but without duplication for
         any Associated Costs reimbursed pursuant to SECTION 5.1(a) or (b), as
         to any Alternative Currency Loan denominated in British Pounds, the
         Borrowers will pay the Associated Costs. In addition, the Associated
         Costs shall be increased by an amount which the applicable Lender shall
         determine from time to time to be necessary to compensate such Lender
         for the cost or loss to it of complying with any liquidity, monetary
         control or prudential requirements of The Bank of England existing from
         time to time.

                  (d) Each Lender shall promptly notify the Borrowers and the
         Administrative Agent of any event of which it has knowledge, occurring
         after the date hereof, which will entitle such Lender to compensation
         pursuant to this SECTION 5.1 and will designate a different Applicable
         Lending Office if such designation will avoid the need for, or reduce
         the amount of, such compensation and will not, in the judgment of such
         Lender, be otherwise disadvantageous to it. Any Lender claiming
         compensation under this SECTION 5.1 shall furnish to the Borrowers and
         the Administrative Agent a statement setting forth the additional
         amount or amounts to be paid to it hereunder which shall be conclusive
         in the absence of manifest error. In determining such amount, such
         Lender may use any reasonable averaging and attribution methods.

         5.2 LIMITATION ON TYPES OF LOANS. If on or prior to the first day of
any Interest Period for any Eurodollar Rate Loan:

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<PAGE>   63

                  (a) the Administrative Agent determines (which determination
         shall be conclusive) that by reason of circumstances affecting the
         relevant market, adequate and reasonable means do not exist for
         ascertaining the Eurodollar Rate for such Interest Period; or

                  (b) the Required Lenders determine (which determination shall
         be conclusive) and notify the Administrative Agent that the Eurodollar
         Rate will not adequately and fairly reflect the cost to the Lenders of
         funding Eurodollar Rate Loans for such Interest Period;

then the Administrative Agent shall give the Borrowers prompt notice thereof
specifying the relevant Type of Loans and the relevant amounts or periods, and
so long as such condition remains in effect, the Lenders shall be under no
obligation to make additional Loans of such Type, Continue Loans of such Type,
or to Convert Loans of any other Type into Loans of such Type and the Borrowers
shall, on the last day(s) of the then current Interest Period(s) for the
outstanding Loans of the affected Type, either prepay such Loans or Convert such
Loans into another Type of Loan in accordance with the terms of this Agreement.

         5.3 ILLEGALITY. Notwithstanding any other provision of this Agreement,
in the event that it becomes unlawful for any Lender or its Applicable Lending
Office to make, maintain, or fund Eurodollar Rate Loans or Competitive Bid Loans
at a Eurodollar Competitive Rate hereunder, then such Lender shall promptly
notify the Borrowers thereof and such Lender's obligation to make or Continue
Eurodollar Rate Loans or Competitive Bid Loans at a Eurodollar Competitive Rate
and to Convert other Types of Loans into Eurodollar Rate Loans or Competitive
Bid Loans at a Eurodollar Competitive Rate shall be suspended until such time as
such Lender may again make, maintain, and fund Eurodollar Rate Loans or
Competitive Bid Loans at a Eurodollar Competitive Rate (in which case the
provisions of SECTION 5.4 shall be applicable).

         5.4 TREATMENT OF AFFECTED LOANS. If the obligation of any Lender to
make a Eurodollar Rate Loan or a Competitive Bid Loan or to Continue, or to
Convert Loans of any other Type into, Loans of a particular Type shall be
suspended pursuant to SECTION 5.2 OR 5.3 hereof (Loans of such Type being herein
called "Affected Loans" and such Type being herein called the "Affected Type"),
such Lender's Affected Loans shall be (i), in the case of Loans denominated in
Dollars, automatically Converted into Base Rate Loans on the last day(s) of the
then current Interest Period(s) for Affected Loans (or, in the case of a
Conversion required by SECTION 5.3 hereof, on such earlier date as such Lender
may specify to the Borrowers with a copy to the Administrative Agent) and,
unless and until such Lender gives notice as provided below that the
circumstances specified in SECTION 5.2 OR 5.3 hereof that gave rise to such
Conversion no longer exist:

                  (a) to the extent that such Lender's Affected Loans have been
         so Converted, all payments and prepayments of principal that would
         otherwise be applied to such Lender's Affected Loans shall be applied
         instead to its Base Rate Loans; and

                  (b) all Loans that would otherwise be made or Continued by
         such Lender as Loans of the Affected Type shall be made or Continued
         instead as Base Rate Loans, and all

                                       57

<PAGE>   64

         Loans of such Lender that would otherwise be Converted into Loans of
         the Affected Type shall be Converted instead into (or shall remain as)
         Base Rate Loans; and

(ii) in the case of a Loan denominated in an Alternative Currency, paid in full
on the last day of the Interest Period for such Loan.

If such Lender gives notice to the Borrower (with a copy to the Administrative
Agent) that the circumstances specified in SECTION 5.2 OR 5.3 hereof that gave
rise to the Conversion of such Lender's Affected Loans pursuant to this SECTION
5.4 no longer exist (which such Lender agrees to do promptly upon such
circumstances ceasing to exist) at a time when Loans of the Affected Type made
by other Lenders are outstanding, such Lender's Base Rate Loans shall be
automatically Converted, on the first day(s) of the next succeeding Interest
Period(s) for such outstanding Loans of the Affected Type, to the extent
necessary so that, after giving effect thereto, all Loans held by the Lenders
holding Loans of the Affected Type and by such Lender are held pro rata (as to
principal amounts, Types, and Interest Periods) in accordance with their
respective Revolving Credit Commitments.

         5.5 COMPENSATION. Upon the request of any Lender, the Borrowers shall
pay to such Lender such amount or amounts as shall be sufficient (in the
reasonable opinion of such Lender) to compensate it for any loss, cost, or
expense (including loss of anticipated profits) incurred by it as a result of:

                  (a) any payment, prepayment, or Conversion of a Eurodollar
         Rate Loan or a Competitive Bid Loan for any reason (including, without
         limitation, the acceleration of the Loans pursuant to SECTION 10.1) on
         a date other than the last day of the Interest Period for such Loan; or

                  (b) any failure by the Borrowers for any reason (including,
         without limitation, the failure of any condition precedent specified in
         ARTICLE VI to be satisfied) to borrow, Convert, Continue, or prepay a
         Eurodollar Rate Loan or a Competitive Bid Loan on the date for such
         borrowing, Conversion, Continuation, or prepayment specified in the
         relevant notice of borrowing, prepayment, Continuation, or Conversion
         under this Agreement.

         5.6 TAXES.

                  (a) Any and all payments by the Borrowers to or for the
         account of any Lender or the Administrative Agent hereunder or under
         any other Loan Document shall be made free and clear of and without
         deduction for any and all present or future taxes, duties, levies,
         imposts, deductions, charges or withholdings, and all liabilities with
         respect thereto, EXCLUDING, in the case of each Lender and the
         Administrative Agent, taxes imposed on its income, and franchise taxes
         imposed on it, by the jurisdiction under the laws of which such Lender
         (or its Applicable Lending Office) or the Administrative Agent (as the
         case may be) is organized or maintains an Applicable Lending Office or
         any political subdivision thereof (all such non-excluded taxes, duties,
         levies, imposts, deductions, charges, withholdings, and

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<PAGE>   65

         liabilities being hereinafter referred to as "Taxes"). If any Borrower
         shall be required by law to deduct any Taxes from or in respect of any
         sum payable under this Agreement or any other Loan Document to any
         Lender or the Administrative Agent, (i) the sum payable shall be
         increased as necessary so that after making all required deductions
         (including deductions applicable to additional sums payable under this
         SECTION 5.6) such Lender or the Administrative Agent receives an amount
         equal to the sum it would have received had no such deductions been
         made, (ii) such Borrower shall make such deductions, (iii) such
         Borrower shall pay the full amount deducted to the relevant taxation
         authority or other authority in accordance with applicable law, and
         (iv) such Borrower shall furnish to the Administrative Agent, at its
         address referred to in SECTION 12.2, the original or a certified copy
         of a receipt evidencing payment thereof.

                  (b) In addition, each Borrower agrees to pay any and all
         present or future stamp or documentary taxes and any other excise or
         property taxes or charges or similar levies which arise from any
         payment made under this Agreement or any other Loan Document or from
         the execution or delivery by such Borrower of, or otherwise with
         respect to, this Agreement or any other Loan Document (hereinafter
         referred to as "Other Taxes").

                  (c) Each Borrower agrees to indemnify each Lender and the
         Administrative Agent for the full amount of Taxes and Other Taxes
         (including, without limitation, any Taxes or Other Taxes imposed or
         asserted by any jurisdiction on amounts payable by such Borrower under
         this SECTION 5.6) paid by such Lender or the Administrative Agent (as
         the case may be) and any liability (including penalties, interest, and
         expenses) arising therefrom or with respect thereto.

                  (d) Each Lender organized under the laws of a jurisdiction
         outside the United States, on or prior to the date of its execution and
         delivery of this Agreement in the case of each Lender listed on the
         signature pages hereof and on or prior to the date on which it becomes
         a Lender in the case of each other Lender, and from time to time
         thereafter if requested in writing by the Parent or the Administrative
         Agent (but only so long as such Lender remains lawfully able to do so),
         shall provide the Borrowers and the Administrative Agent with (i)
         Internal Revenue Service Form 1001 or 4224, as appropriate, or any
         successor form prescribed by the Internal Revenue Service, certifying
         that such Lender is entitled to benefits under an income tax treaty to
         which the United States is a party which reduces the rate of
         withholding tax on payments of interest or certifying that the income
         receivable pursuant to this Agreement is effectively connected with the
         conduct of a trade or business in the United States, (ii) Internal
         Revenue Service Form W-8 (including Form W-8BEN or W-8EC1) or W-9, as
         appropriate, or any successor form prescribed by the Internal Revenue
         Service, and (iii) any other form or certificate required by any taxing
         authority (including any certificate required by Sections 871(h) and
         881(c) of the Internal Revenue Code), certifying that such Lender is
         entitled to an exemption from or a reduced rate of tax on payments
         pursuant to this Agreement or any of the other Loan Documents.

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                  (e) For any period with respect to which a Lender has failed
         to provide the Borrowers and the Administrative Agent with the
         appropriate form pursuant to SECTION 5.6(d) (unless such failure is due
         to a change in treaty, law, or regulation occurring subsequent to the
         date on which a form originally was required to be provided), or if any
         information on such forms is false or inaccurate in any material
         respect such Lender shall not be entitled to indemnification under
         SECTION 5.6(a) OR 5.6(b) with respect to Taxes imposed by the United
         States; PROVIDED, HOWEVER, that should a Lender, which is otherwise
         exempt from or subject to a reduced rate of withholding tax, become
         subject to Taxes because of its failure to deliver a form required
         hereunder, the Borrowers shall take such steps as such Lender shall
         reasonably request to assist such Lender to recover such Taxes.

                  (f) If a Borrower is required to pay additional amounts to or
         for the account of any Lender pursuant to this SECTION 5.6, then such
         Lender will agree to use reasonable efforts to change the jurisdiction
         of its Applicable Lending Office so as to eliminate or reduce any such
         additional payment which may thereafter accrue if such change, in the
         judgment of such Lender, is not otherwise disadvantageous to such
         Lender.

                  (g) Within thirty (30) days after the date of any payment of
         Taxes, the Borrowers shall furnish to the Administrative Agent the
         original or a certified copy of a receipt evidencing such payment.

                  (h) Without prejudice to the survival of any other agreement
         of the Borrowers hereunder, the agreements and obligations of the
         Borrowers contained in this SECTION 5.6 shall survive the termination
         of the Revolving Credit Commitments and the payment in full of the
         Notes and the Facility Termination Date.

                  (i) Notwithstanding any provision contained in this SECTION
         5.6 to the contrary, the Borrowers shall not be obligated to reimburse
         any Lender which is obligated to pay Florida documentary stamp taxes by
         reason of the fact that it has brought its Note or Notes or other Loan
         Documents into the State of Florida, other than for the reason of
         enforcing its rights under its Note or Notes or other Loan Documents.

         5.7 REPLACEMENT LENDERS. In the event a Lender shall be unable to make
a Loan by reason of any provision of this ARTICLE V or shall seek compensation
pursuant to this ARTICLE V (other than SECTION 5.5), the Parent may, in its sole
discretion, on ten (10) Business Days' prior written notice to the
Administrative Agent and such Lender, cause such Lender to (and such Lender
shall) assign pursuant to SECTION 12.1 hereof, all of its rights and obligations
under this Agreement (other than with respect to outstanding Competitive Bid
Loans) to an Eligible Assignee designated by the Parent which is willing to
become a Lender for a purchase price equal to the outstanding principal amount
of the Loans payable to such Lender, together with any accrued but unpaid
interest on such Loans, any accrued but unpaid fees with respect to such
Lender's Revolving Credit Commitment and any other amounts payable to such
Lender under this Agreement; PROVIDED, that any expenses or other amounts which
would be owing to such Lender pursuant to any indemnification provision
hereunder shall be payable by the Parent as if the

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respective Borrower had prepaid the Loans of such Lender rather than such Lender
having assigned its interest thereunder. The Borrowers or the Eligible Assignee
under this Section shall pay the applicable processing fee under SECTION 12.1.

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                                   ARTICLE VI

            CONDITIONS TO MAKING LOANS AND ISSUING LETTERS OF CREDIT

         6.1 CONDITIONS OF INITIAL ADVANCE AND ISSUING LETTERS OF CREDIT. The
obligation of the Lenders to make the initial Advance under the Revolving Credit
Facility, and of the Issuing Bank to issue any Letter of Credit, and of Bank of
America to make any Swing Line Loan, is subject to the conditions precedent
that:

                  (a) the Administrative Agent shall have received on the
         Closing Date, in form and substance satisfactory to the Administrative
         Agent, the following:

                           (i) executed originals of each of this Agreement for
                  each Lender, the Notes of each Lender, the LC Account
                  Agreement, the other Loan Documents, together with all
                  schedules and exhibits thereto;

                           (ii) the favorable written opinion or opinions with
                  respect to the Loan Documents and the transactions
                  contemplated thereby of counsel to the Borrowers dated the
                  Closing Date, addressed to the Administrative Agent and the
                  Lenders and satisfactory to Smith Helms Mulliss & Moore,
                  L.L.P., special counsel to the Administrative Agent,
                  substantially in the form of EXHIBIT J;

                           (iii) resolutions of the boards of directors or other
                  appropriate governing body (or of the appropriate committee
                  thereof) of each Borrower certified by its secretary or
                  assistant secretary as of the Closing Date, approving and
                  adopting the Loan Documents to be executed by such Person, and
                  authorizing the execution and delivery thereof;

                           (iv) specimen signatures of officers or other
                  appropriate representatives executing the Loan Documents on
                  behalf of each of the Borrowers, certified by the secretary or
                  assistant secretary of such Borrower;

                           (v) the Organizational Documents of each of the
                  Borrowers certified as of a recent date by the Secretary of
                  State of its state of organization;

                           (vi) Operating Documents of each of the Borrowers
                  certified as of the Closing Date as true and correct by its
                  secretary or assistant secretary;

                           (vii) certificates, if available, issued as of a
                  recent date by the Secretaries of State of the respective
                  jurisdictions of formation of each of the Borrowers as to the
                  due existence and good standing of such Person;

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                           (viii) appropriate certificate of qualification to do
                  business, good standing and, where appropriate, authority to
                  conduct business under assumed name, issued in respect of each
                  Borrower as of a recent date by the Secretary of State of
                  Florida;

                           (ix) notice of appointment of the initial Authorized
                  Representative(s);

                           (x) certificate of an Authorized Representative dated
                  the Closing Date demonstrating compliance with the financial
                  covenants contained in SECTIONS 9.1(a) through 9.1(d) as of
                  the end of the fiscal quarter most recently ended prior to the
                  Closing Date, substantially in the form of EXHIBIT K;

                           (xi) evidence of all insurance required by the Loan
                  Documents;

                           (xii) an initial Borrowing Notice, and, if elected by
                  the Borrowers, an Interest Rate Selection Notice;

                           (xiii) evidence that all fees payable by the
                  Borrowers on the Closing Date to the Administrative Agent, BAS
                  and the Lenders have been paid in full;

                           (xiv) Uniform Commercial Code search results showing
                  only those Liens as are acceptable to the Administrative
                  Agent; and

                           (xv) such other documents, instruments, certificates
                  and opinions as the Administrative Agent or any Lender may
                  reasonably request on or prior to the Closing Date in
                  connection with the consummation of the transactions
                  contemplated hereby; and

                  (b) In the good faith judgment of the Administrative Agent and
         the Lenders:

                           (i) there shall not have occurred or become known to
                  the Administrative Agent or the Lenders any event, condition,
                  situation or status since the date of the information
                  contained in the financial and business projections, budgets,
                  pro forma data and forecasts concerning the Parent and its
                  Subsidiaries delivered to the Administrative Agent prior to
                  the Closing Date that has had or could reasonably be expected
                  to result in a Material Adverse Effect;

                           (ii) no litigation, action, suit, investigation or
                  other arbitral, administrative or judicial proceeding shall be
                  pending or threatened which could reasonably be likely to
                  result in a Material Adverse Effect; and

                           (iii) the Borrowers shall have received all
                  approvals, consents and waivers, and shall have made or given
                  all necessary filings and notices as shall be required to
                  consummate the transactions contemplated hereby without the
                  occurrence of any default under, conflict with or violation of
                  (A) any applicable law, rule, regulation,

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                  order or decree of any Governmental Authority or arbitral
                  authority or (B) any agreement, document or instrument to
                  which any Borrower is a party or by which any of them or their
                  properties is bound.

         6.2 CONDITIONS OF REVOLVING LOANS AND LETTER OF CREDIT. The obligations
of the Lenders to make any Revolving Loans, and the Issuing Bank to issue (or
renew) Letters of Credit and Bank of America to make Swing Line Loans, hereunder
on or subsequent to the Closing Date are subject to the satisfaction of the
following conditions:

                  (a) the Administrative Agent or, in the case of Swing Line
         Loans, Bank of America shall have received a Borrowing Notice if
         required by ARTICLE II;

                  (b) the representations and warranties of the Borrowers set
         forth in ARTICLE VII and in each of the other Loan Documents shall be
         true and correct in all material respects on and as of the date of such
         Advance, Swing Line Loan or Letter of Credit issuance or renewal, with
         the same effect as though such representations and warranties had been
         made on and as of such date, except to the extent that such
         representations and warranties expressly relate to an earlier date and
         except that the financial statements referred to in SECTION 7.6(a)
         shall be deemed (solely for the purpose of the representation and
         warranty contained in such SECTION 7.6(a) but not for the purpose of
         any cross reference to such SECTION 7.6(a) or to the financial
         statements described therein contained in any other provision of
         SECTION 7.6 or elsewhere in ARTICLE VII) to be those financial
         statements most recently delivered to the Administrative Agent and the
         Lenders pursuant to SECTION 8.1 from the date financial statements are
         delivered to the Administrative Agent and the Lenders in accordance
         with such Section;

                  (c) in the case of the issuance of a Letter of Credit, a
         Borrower shall have executed and delivered to the Issuing Bank an
         Application and Agreement for Letter of Credit in form and content
         acceptable to the Issuing Bank together with such other instruments and
         documents as it shall request;

                  (d) at the time of (and after giving effect to) each Advance,
         Swing Line Loan or the issuance of a Letter of Credit, no Default or
         Event of Default specified in ARTICLE X shall have occurred and be
         continuing; and

                  (e) immediately after giving effect to:

                           (i) a Revolving Loan, the aggregate principal balance
                  of all outstanding Revolving Loans for each Lender shall not
                  exceed such Lender's Revolving Credit Commitment;

                           (ii) a Letter of Credit or renewal thereof, the
                  aggregate principal balance of all outstanding Participations
                  in Letters of Credit and Reimbursement Obligations (or in the
                  case of the Issuing Bank, its remaining interest after
                  deduction of all

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                  Participations in Letters of Credit and Reimbursement
                  Obligations of other Lenders) for each Lender and in the
                  aggregate shall not exceed, respectively, (X) such Lender's
                  Letter of Credit Commitment or (Y) the Total Letter of Credit
                  Commitment;

                           (iii) a Swing Line Loan, the Swing Line Outstandings
                  shall not exceed $10,000,000; and

                           (iv) a Revolving Loan, Competitive Bid Loan, Swing
                  Line Loan or a Letter of Credit or renewal thereof, the sum of
                  Outstandings shall not exceed the Total Revolving Credit
                  Commitment.

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                                   ARTICLE VII

                         REPRESENTATIONS AND WARRANTIES

         Each Borrower represents and warrants with respect to itself and to its
Subsidiaries (which representations and warranties shall survive the delivery of
the documents mentioned herein and the making of Loans), that:

         7.1 ORGANIZATION AND AUTHORITY.

                  (a) The Parent and each Material Subsidiary is a corporation
         or partnership duly organized and validly existing under the laws of
         the jurisdiction of its formation;

                  (b) The Parent and each Material Subsidiary (x) has the
         requisite power and authority to own its properties and assets and to
         carry on its business as now being conducted and as contemplated in the
         Loan Documents, and (y) is qualified to do business in every
         jurisdiction in which failure so to qualify would have a Material
         Adverse Effect;

                  (c) The Borrower has the power and authority to execute,
         deliver and perform this Agreement and the Notes, and to borrow
         hereunder, and to execute, deliver and perform each of the other Loan
         Documents to which it is a party;

                  (d) When executed and delivered, each of the Loan Documents to
         which any Borrower is a party will be the legal, valid and binding
         obligation or agreement, as the case may be, of such Borrower,
         enforceable against such Borrower in accordance with its terms, subject
         to the effect of any applicable bankruptcy, moratorium, insolvency,
         reorganization or other similar law affecting the enforceability of
         creditors' rights generally and to the effect of general principles of
         equity (whether considered in a proceeding at law or in equity).

         7.2 LOAN DOCUMENTS. The execution, delivery and performance by each
Borrower of each of the Loan Documents to which it is a party:

                  (a) have been duly authorized by all requisite Organizational
         Action of such Borrower required for the lawful execution, delivery and
         performance thereof;

                  (b) do not violate any provisions of (i) any applicable law,
         rule or regulation, (ii) any judgment, writ, order, determination,
         decree or arbitral award of any Governmental Authority or arbitral
         authority binding on such Borrower or its properties, or (iii) the
         Organizational Documents or Operating Documents of such Borrower;

                  (c) does not and will not be in conflict with, result in a
         breach of or constitute an event of default, or an event which, with
         notice or lapse of time or both, would constitute an event of default,
         under any contract, indenture, agreement or other instrument or
         document

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         to which such Borrower is a party, or by which the properties or assets
         of such Borrower are bound; and

                  (d) does not and will not result in the creation or imposition
         of any Lien upon any of the properties or assets of such Borrower or
         any Subsidiary.

         7.3 SOLVENCY. Each Borrower is Solvent after giving effect to the
transactions contemplated by the Loan Documents.

         7.4 SUBSIDIARIES AND STOCKHOLDERS. The Borrower has no Subsidiaries
other than those Persons listed as Subsidiaries in SCHEDULE 7.4 and additional
Subsidiaries created or acquired after the Closing Date; SCHEDULE 7.4 states as
of the date hereof the organizational form of each entity, whether such
Subsidiary is a Material Subsidiary and if it is a Material Subsidiary its
percent of Consolidated Total Assets and consolidated net revenues and the
number and/or percentage of outstanding shares or other equity interest
(including options, warrants and other rights to acquire any interest) of each
such class of capital stock or other equity interest owned by Borrower or by any
such Subsidiary; the outstanding shares or other equity interests of each such
Subsidiary have been duly authorized and validly issued and are fully paid and
nonassessable; and Borrower and each such Subsidiary owns beneficially and of
record all the shares and other interests it is listed as owning in SCHEDULE
7.4, free and clear of any Lien.

         7.5 OWNERSHIP INTERESTS. The Parent owns no interest in one or more
Persons, which interest in such Persons has an aggregate fair market value in
excess of $750,000, other than the Persons listed in SCHEDULE 7.4, equity
investments in Persons not constituting Subsidiaries permitted under SECTION 9.6
and additional Subsidiaries created or acquired after the Closing Date.

         7.6 FINANCIAL CONDITION.

                  (a) The Parent has heretofore furnished to each Lender an
         audited consolidated balance sheet of the Parent and its Subsidiaries
         as at June 30, 1999 and the notes thereto and the related consolidated
         statements of income, stockholders' equity and cash flows for the
         Fiscal Year then ended as examined and certified by
         PricewaterhouseCoopers, and unaudited consolidated interim financial
         statements of the Parent and its Subsidiaries consisting of a
         consolidated balance sheets and related consolidated statements of
         income, stockholders' equity and cash flows, in each case without
         notes, for and as of the end of the three month period ending September
         30, 1999. Except as set forth therein, such annual financial statements
         (including the notes thereto) present fairly the consolidated financial
         condition of the Parent and its Subsidiaries as of the end of such
         Fiscal Year and three month period and results of their operations and
         the changes in its stockholders' equity for the Fiscal Year then ended,
         and in the case of such interim financial statements, reflect all
         adjustments constituting only normal recurring accruals necessary for a
         fair presentation of the consolidated financial condition of the Parent
         and its Subsidiaries as of such date and the consolidated results of
         their operations and changes in cash flows all in conformity with

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         GAAP applied on a Consistent Basis, subject however, in the case of
         unaudited interim statements to year end audit adjustments;

                  (b) since the later of (i) the date of the audited financial
         statements delivered pursuant to SECTION 7.6(a) hereof or (ii) the date
         of the audited financial statements most recently delivered pursuant to
         SECTION 8.1(a) hereof, there has been no material adverse change in the
         condition, financial or otherwise, of the Parent or any of its Material
         Subsidiaries or in the businesses, properties, performance, prospects
         or operations of the Parent or its Material Subsidiaries, nor have such
         businesses or properties been materially adversely affected as a result
         of any fire, explosion, earthquake, accident, strike, lockout,
         combination of workers, flood, embargo or act of God; and

                  (c) except as set forth in the financial statements referred
         to in SECTION 7.6(a) or in SCHEDULE 7.6 or permitted by SECTION 9.10,
         neither the Parent nor any Subsidiary has incurred, other than in the
         ordinary course of business, any material Indebtedness, Contingent
         Obligation or other commitment or liability which remains outstanding
         or unsatisfied.

         7.7 TITLE TO PROPERTIES. The Parent and each of its Material
Subsidiaries has good and marketable title to all its real and personal
properties, subject to no transfer restrictions or Liens of any kind, except for
the transfer restrictions and Liens described in SCHEDULE 7.7 and Liens
permitted by SECTION 9.3.

         7.8 TAXES. Except as set forth in SCHEDULE 7.8, the Borrower and each
of its Subsidiaries has filed or caused to be filed all federal, state and local
tax returns which are required to be filed by it and, except for taxes and
assessments being contested in good faith by appropriate proceedings diligently
conducted and against which reserves reflected in the financial statements
described in SECTION 7.6(a) or SECTIONS 8.1(a) or (b) and satisfactory to the
Parent's independent certified public accountants have been established, have
paid or caused to be paid all taxes as shown on said returns or on any
assessment received by it, to the extent that such taxes have become due.

         7.9 OTHER AGREEMENTS. Neither the Borrower nor any Subsidiary is

                  (a) a party to or subject to any judgment, order, decree,
         agreement, lease or instrument, or subject to other restrictions, which
         individually or in the aggregate could reasonably be expected to have a
         Material Adverse Effect; or

                  (b) in default in the performance, observance or fulfillment
         of any of the obligations, covenants or conditions contained in any
         agreement or instrument to which such Borrower or any Subsidiary is a
         party, which default has, or if not remedied within any applicable
         grace period could reasonably be likely to have, a Material Adverse
         Effect.

         7.10 LITIGATION. Except as set forth in the Parent's Annual Report on
Form 10-K for the period ended June 30, 1999 or Quarterly Report on Form 10-Q
for the period ended September 30,

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1999, as to which the ultimate outcome, and whether such proceeding could have a
Material Adverse Effect cannot be determined at this time, there is no action,
suit, investigation or proceeding at law or in equity or by or before any
governmental instrumentality or agency or arbitral body pending, or, to the
knowledge of the Borrower, threatened by or against the Borrower or any
Subsidiary or affecting the Borrower or any Subsidiary or any properties or
rights of the Borrower or any Subsidiary, which could reasonably be likely to
have a Material Adverse Effect.

         7.11 MARGIN STOCK. The proceeds of the borrowings made hereunder will
be used by the Borrower only for the purposes expressly authorized herein. None
of such proceeds will be used, directly or indirectly, for the purpose of
purchasing or carrying any margin stock or for the purpose of reducing or
retiring any Indebtedness which was originally incurred to purchase or carry
margin stock or for any other purpose which might constitute any of the Loans
under this Agreement a "purpose credit" within the meaning of said Regulation U
(12 C.F.R. Part 224) or Regulation X (12 C.F.R. Part 221) of the Board. Neither
the Borrower nor any agent acting in its behalf has taken or will take any
action which might cause this Agreement or any of the documents or instruments
delivered pursuant hereto to violate any regulation of the Board or to violate
the Securities Exchange Act of 1934, as amended, or the Securities Act of 1933,
as amended, or any state securities laws, in each case as in effect on the date
hereof.

         7.12 INVESTMENT COMPANY. The Parent is not an "investment company," or
an "affiliated person" of, or "promoter" or "principal underwriter" for, an
"investment company," as such terms are defined in the Investment Company Act of
1940, as amended (15 U.S.C. ss. 80a-1, et seq.). The application of the proceeds
of the Loans and repayment thereof by the Borrowers and the performance by the
Borrowers of the transactions contemplated by the Loan Documents will not
violate any provision of said Act, or any rule, regulation or order issued by
the Securities and Exchange Commission thereunder, in each case as in effect on
the date hereof.

         7.13 PATENTS, ETC. Except as set forth in the Parent's Annual Report on
Form 10-K for the period ended June 30, 1999 or Quarterly Report on Form 10-Q
for the period ended September 30, 1999, as to which the ultimate outcome, and
whether such proceeding could have a Material Adverse Effect cannot be
determined at this time, the Parent owns or has the right to use, under valid
license agreements or otherwise, all material patents, licenses, franchises,
trademarks, trademark rights, trade names, trade name rights, trade secrets and
copyrights necessary to or used in the conduct of its businesses as now
conducted and as contemplated by the Loan Documents, without known conflict with
any patent, license, franchise, trademark, trade secret, trade name, copyright,
other proprietary right of any other Person.

         7.14 NO UNTRUE STATEMENT. Neither (a) this Agreement nor any other Loan
Document or certificate or document executed and delivered by or on behalf of
the Borrower in accordance with or pursuant to any Loan Document nor (b) any
statement, representation, or warranty provided by the Parent or any of its
Subsidiaries to the Administrative Agent in connection with the negotiation or
preparation of the Loan Documents taken together, and taken together with the
Parent's Annual Reports on Form 10-K for periods ending on and prior to June 30,
1999 and Quarterly Reports on Form 10-Q for periods ending on and prior to
September 30, 1999, contains any misrepresentation

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or untrue statement of material fact or omits to state a material fact
necessary, in light of the circumstance under which it was made, in order to
make any such warranty, representation or statement contained therein not
misleading, except that projections and estimates reflected therein constitute
good faith estimates of the Parent or such Subsidiary based on then current
information and assumptions believed by the Parent or such Subsidiary to be
reasonable.

         7.15 NO CONSENTS, ETC. Neither the respective businesses or properties
of the Parent or any Material Subsidiary, nor any relationship among the Parent
or any Material Subsidiary and any other Person, nor any circumstance in
connection with the execution, delivery and performance of the Loan Documents
and the transactions contemplated thereby, is such as to require a consent,
approval or authorization of, or filing, registration or qualification with, any
Governmental Authority or any other Person on the part of the Parent as a
condition to the execution, delivery and performance of, or consummation of the
transactions contemplated by the Loan Documents, which, if not obtained or
effected, would be reasonably likely to have a Material Adverse Effect, or if
so, such consent, approval, authorization, filing, registration or qualification
has been duly obtained or effected, as the case may be.

         7.16 EMPLOYEE BENEFIT PLANS.

                  (a) The Parent and each ERISA Affiliate is in substantial
         compliance with all applicable provisions of ERISA and the regulations
         and published interpretations thereunder and in substantial compliance
         with all Foreign Benefit Laws with respect to all Employee Benefit
         Plans, except for any required amendments for which the remedial
         amendment period as defined in Section 401(b) of the Code has not yet
         expired. Each Employee Benefit Plan that is intended to be qualified
         under Section 401(a) of the Code, except with respect to said remedial
         period, has been determined or the Borrower or its Subsidiaries is in
         the process of obtaining a determination by the Internal Revenue
         Service to be so qualified, each trust related to such plan has been
         determined to be exempt under Section 501(a) of the Code, and each
         Employee Benefit Plan subject to any Foreign Benefit Law has received
         the required approvals by any Governmental Authority regulating such
         Employee Benefit Plan. No material liability has been incurred by the
         Parent or any ERISA Affiliate which remains unsatisfied for any taxes
         or penalties with respect to any Employee Benefit Plan or any
         Multiemployer Plan;

                  (b) Neither the Parent nor any ERISA Affiliate has (i) engaged
         in a nonexempt prohibited transaction described in Section 4975 of the
         Code or Section 406 of ERISA affecting any of the Employee Benefit
         Plans or the trusts created thereunder which could subject any such
         Employee Benefit Plan or trust to a material tax or penalty on
         prohibited transactions imposed under Internal Revenue Code Section
         4975 or ERISA, (ii) incurred any accumulated funding deficiency under
         Section 412 of the Code or Section 302 of ERISA with respect to any
         Employee Benefit Plan, whether or not waived, or any other liability to
         the PBGC which remains outstanding other than the payment of premiums
         and there are no premium payments which are due and unpaid, (iii)
         failed to make a required contribution or payment to a Multiemployer
         Plan, (iv) failed to make a required installment or other required

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         payment under Section 412 of the Code, Section 302 of ERISA or the
         terms of such Employee Benefit Plan, or (v) failed to make a required
         contribution or payment, or otherwise failed to operate in compliance
         with any Foreign Benefit Law regulating any Employee Benefit Plan;

                  (c) No Termination Event has occurred or is reasonably
         expected to occur with respect to any Pension Plan or Multiemployer
         Plan, and neither the Parent nor any ERISA Affiliate has incurred any
         unpaid withdrawal liability under Title IV of ERISA with respect to any
         Multiemployer Plan;

                  (d) The present value of all vested accrued benefits under
         each Employee Benefit Plan which is subject to Title IV of ERISA, or
         where the funding of which is regulated by any Foreign Benefit Law did
         not, as of the most recent valuation date for each such plan, exceed
         the then current value of the assets of such Employee Benefit Plan
         allocable to such benefits;

                  (e) To the best of the Borrower's knowledge, each Employee
         Benefit Plan which is subject to Title IV of ERISA or the funding of
         which is regulated by any Foreign Benefit Law, maintained by the Parent
         or any ERISA Affiliate, has been administered in accordance with its
         terms in all material respects and is in compliance in all material
         respects with all applicable requirements of ERISA, applicable Foreign
         Benefit Law and other applicable laws, regulations and rules;

                  (f) The consummation of the Loans and the issuance of the
         Letters of Credit provided for herein will not involve any prohibited
         transaction under ERISA which is not subject to a statutory or
         administrative exemption; and

                  (g) No material proceeding, claim, lawsuit and/or
         investigation exists or, to the best knowledge of the Borrower after
         due inquiry, is threatened concerning or involving any Employee Benefit
         Plan;

         7.17 NO DEFAULT. As of the date hereof, there does not exist any
Default or Event of Default hereunder.

         7.18 ENVIRONMENTAL LAWS. Except as listed on SCHEDULE 7.18, the
Borrower and each Subsidiary is in compliance in all material respects with all
applicable Environmental Laws and has been issued and currently maintains all
required federal, state and local permits, licenses, certificates and approvals.
Except as listed on SCHEDULE 7.18, neither the Borrower nor any Subsidiary has
been notified of any pending or threatened action, suit, proceeding or
investigation, and neither the Borrower nor any Subsidiary is aware of any
facts, any of which could reasonably be expected to have a Material Adverse
Effect, which (a) calls into question, or could reasonably be expected to call
into question, compliance by the Borrower or any Subsidiary with any
Environmental Laws, (b) seeks, or could reasonably be expected to form the basis
of a meritorious proceeding, to suspend, revoke or terminate any license, permit
or approval necessary for the operation of the Borrower's

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or any Subsidiary's business or facilities or for the generation, handling,
storage, treatment or disposal of any Hazardous Materials, or (c) seeks to
cause, or could reasonably be expected to form the basis of a meritorious
proceeding to cause, any property of the Borrower or any Subsidiary to be
subject to any restrictions on ownership, use, occupancy or transferability
under any Environmental Law.

         7.19 EMPLOYMENT MATTERS.

                  (a) None of the employees of the Borrower or any Subsidiary is
         subject to any collective bargaining agreement and there are no
         strikes, work stoppages, election or decertification petitions or
         proceedings, unfair labor charges, equal opportunity proceedings, or
         other material labor/employee related controversies or proceedings
         pending or, to the best knowledge of the Borrower, threatened against
         the Borrower or any Subsidiary or between the Borrower or any
         Subsidiary and any of its employees, other than employee grievances
         arising in the ordinary course of business which could not reasonably
         be expected, individually or in the aggregate, to have a Material
         Adverse Effect; and

                  (b) Except to the extent a failure to maintain compliance
         would not have a Material Adverse Effect, the Borrower and each
         Subsidiary is in compliance in all respects with all applicable laws,
         rules and regulations pertaining to labor or employment matters,
         including without limitation those pertaining to wages, hours,
         occupational safety and taxation and there is neither pending or
         threatened any litigation, administrative proceeding nor, to the
         knowledge of the Borrower, any investigation, in respect of such
         matters which, if decided adversely, could reasonably be likely,
         individually or in the aggregate, to have a Material Adverse Effect.

         7.20 RICO. Neither the Borrower nor any Subsidiary is engaged in or has
engaged in any course of conduct that could reasonably subject any of their
respective properties to any Lien, seizure or other forfeiture under any
criminal law, racketeer influenced and corrupt organizations law, civil or
criminal, or other similar laws.

         7.21 YEAR 2000 COMPLIANCE. The Borrower and its Material Subsidiaries
have (i) initiated a review and assessment of all areas within its and each of
its Subsidiaries' business and operations (including those affected by
information received from suppliers and vendors) that could reasonably be
expected to be adversely affected by the Year 2000 Problem, (ii) developed a
plan and timeline for addressing the Year 2000 Problem on a timely basis, and
(iii) to date, implemented that plan substantially in accordance with that
timetable. The Borrower reasonably believes that all computer applications
(including those affected by information received from its suppliers and
vendors) that are material to its or any of its Subsidiaries' business and
operations will on a timely basis be Year 2000 Compliant, except to the extent
that a failure to do so could not reasonably be expected to have Material
Adverse Effect.

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                                  ARTICLE VIII

                              AFFIRMATIVE COVENANTS

         Until the Facility Termination Date, unless the Required Lenders shall
otherwise consent in writing, the Parent will, and where applicable will cause
each Material Subsidiary to:

         8.1      FINANCIAL REPORTS, ETC.

                  (a) As soon as practical and in any event within 105 days
         after the end of each Fiscal Year of the Parent, deliver or cause to be
         delivered to the Administrative Agent and each Lender (i) a
         consolidated balance sheet of the Parent and its Subsidiaries as at the
         end of such Fiscal Year, and the notes thereto, and the related
         consolidated statements of income, stockholders' equity and cash flows,
         and the respective notes thereto, for such Fiscal Year, setting forth
         comparative financial statements for the preceding Fiscal Year, all
         prepared in accordance with GAAP applied on a Consistent Basis and
         containing, with respect to the consolidated financial statements,
         opinions of PricewaterhouseCoopers, or other such independent certified
         public accountants selected by the Parent and approved by the
         Administrative Agent, which are unqualified as to the scope of the
         audit performed and as to the "going concern" status of the Parent and
         without any exception not acceptable to the Lenders, (ii) a certificate
         of an Authorized Representative demonstrating compliance with SECTIONS
         9.1(a) through 9.1(e), which certificate shall be in the form of
         EXHIBIT K and (iii) a schedule containing a list of Material
         Subsidiaries as at the end of the Fiscal Year which schedule shall set
         forth the percentage of Consolidated Total Assets and Consolidated Net
         Income of each such Subsidiary;

                  (b) as soon as practical and in any event within 55 days after
         the end of each fiscal quarter (except the last fiscal quarter of the
         Fiscal Year), deliver to the Administrative Agent and each Lender (i) a
         consolidated balance sheet of the Parent and its Subsidiaries as at the
         end of such fiscal quarter, and the related consolidated statements of
         income, stockholders' equity and cash flows for such fiscal quarter and
         for the period from the beginning of the then current Fiscal Year
         through the end of such reporting period, and accompanied by a
         certificate of an Authorized Representative to the effect that such
         financial statements reflect all adjustments constituting only normal
         recurring accruals necessary for a fair presentation of the
         consolidated financial condition of the Parent and its Subsidiaries as
         of the end of such fiscal period and the consolidated results of their
         operations and the changes in their financial position for such fiscal
         period, (ii) a certificate of an Authorized Representative containing
         computations for such quarter comparable to that required pursuant to
         SECTION 8.1(a)(ii) and (iii) a schedule containing a list of Material
         Subsidiaries as of the end of such fiscal quarter similar to that
         required pursuant to SECTION 8.1(a)(iii).

                  (c) together with each delivery of the financial statements
         required by SECTION 8.1(a)(i), deliver to the Administrative Agent and
         each Lender a letter from the Parent's accountants specified in SECTION
         8.1(a)(i) stating that in performing the audit

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         necessary to render an opinion on the financial statements delivered
         under SECTION 8.1(a)(i), they obtained no knowledge of any Default or
         Event of Default by the Parent in the fulfillment of the terms and
         provisions of this Agreement insofar as they relate to financial
         matters (which at the date of such statement remains uncured); or if
         the accountants have obtained knowledge of such Default or Event of
         Default, a statement specifying the nature and period of existence
         thereof;

                  (d) promptly upon their becoming available to the Parent, the
         Parent shall deliver to the Administrative Agent and each Lender a copy
         of (i) all regular or special reports or effective registration
         statements which Parent or any Subsidiary shall file with the
         Securities and Exchange Commission (or any successor thereto) or any
         securities exchange, (ii) any proxy statement distributed by the Parent
         or any Subsidiary to its shareholders, bondholders or the financial
         community in general, and (iii) any management letter or other report
         submitted to the Parent or any Subsidiary by independent accountants in
         connection with any annual, interim or special audit of the Borrower or
         any Subsidiary;

                  (e) not later than the last Business Day of the first month of
         each Fiscal Year, deliver to the Administrative Agent and each Lender a
         capital and operating expense budget and consolidated financial
         projections for the Parent and its Subsidiaries for the next Fiscal
         Year, prepared in accordance with GAAP applied on a Consistent Basis;
         and

                  (f) promptly, from time to time, deliver or cause to be
         delivered to the Administrative Agent and each Lender such other
         information regarding Parent's and any Subsidiary's operations,
         business affairs and financial condition as the Administrative Agent or
         such Lender may reasonably request.

         8.2 MAINTAIN PROPERTIES. Maintain all properties necessary to its
operations in good working order and condition, make all needed repairs,
replacements and renewals to such properties, and maintain free from Liens all
trademarks, trade names, patents, copyrights, trade secrets, know-how, and other
intellectual property and proprietary information (or adequate licenses
thereto), in each case as are reasonably necessary to conduct its business as
currently conducted or as contemplated hereby, all in accordance with customary
and prudent business practices, except in each case to the extent that failure
to maintain any of the foregoing is not reasonably like to have a Material
Adverse Effect.

         8.3 EXISTENCE, QUALIFICATION, ETC. Except as otherwise expressly
permitted under SECTION 9.5, do or cause to be done all things necessary to
preserve and keep in full force and effect its existence and all material rights
and franchises, and maintain its license or qualification to do business as a
foreign corporation and good standing in each jurisdiction in which its
ownership or lease of property or the nature of its business makes such license
or qualification necessary except where the failure to so qualify would not be
reasonably likely to have a Material Adverse Effect.

         8.4 REGULATIONS AND TAXES. Comply in all material respects with or
contest in good faith all statutes and governmental regulations and pay all
taxes, assessments, governmental charges,

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claims for labor, supplies, rent and any other obligation which, if unpaid,
would become a Lien against any of its properties except liabilities being
contested in good faith by appropriate proceedings diligently conducted and
against which adequate reserves acceptable to the Parent's independent certified
public accountants have been established unless and until any Lien resulting
therefrom attaches to any of its property and becomes enforceable against its
creditors.

         8.5 INSURANCE. (a) Keep all of its insurable properties adequately
insured at all times with responsible insurance carriers against loss or damage
by fire and other hazards to the extent and in the manner as are customarily
insured against by similar businesses owning such properties similarly situated,
(b) maintain general public liability insurance at all times with responsible
insurance carriers against liability on account of damage to persons and
property and (c) maintain insurance under all applicable workers' compensation
laws (or in the alternative, maintain required reserves if self-insured for
workers' compensation purposes) and against loss by reason by business
interruption such policies of insurance to have such limits, deductibles,
exclusions, co-insurance and other provisions providing no less coverages than
are maintained by similar businesses that are similarly situated, such insurance
policies to be in form reasonably satisfactory to the Administrative Agent. Each
of the policies of insurance described in this SECTION 8.5 shall provide that
the insurer shall give the Administrative Agent not less than thirty (30) days'
prior written notice before any such policy shall be terminated, lapse or be
altered in any manner.

         8.6 TRUE BOOKS. Keep true books of record and account in which full,
true and correct entries will be made of all of its dealings and transactions,
and set up on its books such reserves as may be required by GAAP with respect to
doubtful accounts and all taxes, assessments, charges, levies and claims and
with respect to its business in general, and include such reserves in interim as
well as year-end financial statements.

         8.7 YEAR 2000 COMPLIANCE. The Borrower will promptly notify the
Administrative Agent and the Lenders in the event the Borrower discovers or
determines that any computer application (including those affected by
information received from its suppliers and vendors) that is material to its or
any of its Subsidiaries' business and operations will not be Year 2000 Compliant
on a timely basis, except to the extent that such failure could not reasonably
be expected to have a Material Adverse Effect.

         8.8 RIGHT OF INSPECTION. Permit any Person designated by any Lender at
such Lender's expense or the Administrative Agent at the Administrative Agent's
expense to visit and inspect any of the properties, corporate books and
financial reports of the Borrower or any Subsidiary and to discuss its affairs,
finances and accounts with its principal officers and independent certified
public accountants, all at reasonable times, at reasonable intervals and with
reasonable prior notice. From and after the occurrence and during the
continuance of an Event of Default, the Parent shall be obligated to pay the
expenses of the Lender and Administrative Agent incurred in connection with any
such visit and inspection.

         8.9 OBSERVE ALL LAWS. Conform to and duly observe in all material
respects all laws, rules and regulations and all other valid requirements of any
Governmental Authority with respect to the

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conduct of its business, except where the failure to do so could not reasonably
be expected to have a Material Adverse Effect.

         8.10 GOVERNMENTAL LICENSES. Obtain and maintain all licenses, permits,
certifications and approvals of all applicable Governmental Authorities as are
required for the conduct of its business as currently conducted and as
contemplated by the Loan Documents, except where the failure to do so could not
reasonably be expected to have a Material Adverse Effect.

         8.11 COVENANTS EXTENDING TO OTHER PERSONS. Cause each of its Material
Subsidiaries to do with respect to itself, its business and its assets, each of
the things required of the Borrowers in SECTIONS 8.2 through 8.11, and 8.20
inclusive.

         8.12 OFFICER'S KNOWLEDGE OF DEFAULT. Upon any Executive Officer of the
Borrower obtaining knowledge of any Default or Event of Default hereunder or
under any other obligation of the Borrower or any Subsidiary to any Lender, or
any event, development or occurrence which could reasonably be expected to have
a Material Adverse Effect, cause such officer or an Authorized Representative to
promptly notify the Administrative Agent of the nature thereof, the period of
existence thereof, and what action the Borrower or such Subsidiary proposes to
take with respect thereto.

         8.13 SUITS OR OTHER PROCEEDINGS. Upon any Executive Officer of the
Borrower obtaining knowledge of any litigation or other proceedings being
instituted against the Borrower or any Subsidiary, or any attachment, levy,
execution or other process being instituted against any assets of the Parent or
any Subsidiary, making a claim or claims in an aggregate amount greater than
$10,000,000 not otherwise covered by insurance, promptly deliver to the
Administrative Agent written notice thereof stating the nature and status of
such litigation, dispute, proceeding, levy, execution or other process.

         8.14 NOTICE OF ENVIRONMENTAL COMPLAINT OR CONDITION. Promptly provide
to the Administrative Agent true, accurate and complete copies of any and all
notices, complaints, orders, directives, claims or citations received by the
Borrower or any Material Subsidiary relating to any (a) violation or alleged
violation by the Borrower or any Subsidiary of any applicable Environmental Law;
(b) release or threatened release by the Borrower or any Material Subsidiary, or
by any Person handling, transporting or disposing of any Hazardous Material on
behalf of the Borrower or any Material Subsidiary, or at any facility or
property owned or leased or operated by the Borrower or any Material Subsidiary,
of any Hazardous Material, except where occurring legally pursuant to a permit
or license; or (c) liability or alleged liability of the Borrower or any
Material Subsidiary for the costs of cleaning up, removing, remediating or
responding to a release of Hazardous Materials, which in any of the foregoing
instances would reasonably be expected to have a Material Adverse Effect.

         8.15 ENVIRONMENTAL COMPLIANCE. If the Borrower or any Material
Subsidiary shall receive any letter, notice, complaint, order, directive, claim
or citation alleging that the Borrower or any Subsidiary has violated any
Environmental Law, has released any Hazardous Material, or is liable

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for the costs of cleaning up, removing, remediating or responding to a release
of Hazardous Materials, the Borrower and any Subsidiary shall, within the time
period permitted and to the extent required by the applicable Environmental Law
or the Governmental Authority responsible for enforcing such Environmental Law,
remove or remedy, or cause the applicable Subsidiary to remove or remedy, such
violation or release or satisfy such liability, unless and only during the
period that the applicability of the Environmental Law, the fact of such
violation or liability or the action required to remove or remedy such violation
is being contested by the Borrower or the applicable Subsidiary by appropriate
proceedings diligently conducted and all reserves with respect thereto as may be
required under Generally Accepted Accounting Principles, if any, have been made,
and no Lien in connection therewith shall have attached to any property of the
Borrower or the applicable Subsidiary which shall have become enforceable
against creditors of such Person.

         8.16 INDEMNIFICATION. Without limiting the generality of SECTION 12.9,
the Parent hereby agrees to indemnify and hold the Administrative Agent and the
Lenders and any affiliate of any Lender party to a Swap Agreement, and their
respective officers, directors, employees and agents, harmless from and against
any and all claims, losses, penalties, liabilities, damages and expenses
(including assessment and cleanup costs and reasonable attorneys', consultants'
or other expert fees, expenses and disbursements) arising directly or indirectly
from, out of or by reason of (a) the violation of any Environmental Law by the
Borrower or any Subsidiary or with respect to any property owned, operated or
leased by the Borrower or any Subsidiary or (b) the handling, storage,
transportation, treatment, emission, release, discharge or disposal of any
Hazardous Materials by or on behalf of the Borrower or any Subsidiary, or on or
with respect to property owned or leased or operated by the Borrower or any
Subsidiary. The provisions of this SECTION 8.16 shall survive repayment of the
Obligations and expiration or termination of this Agreement.

         8.17 FURTHER ASSURANCES. At the Borrower's cost and expense, upon
request of the Administrative Agent, duly execute and deliver or cause to be
duly executed and delivered, to the Administrative Agent such further
instruments, documents and certificates, and do and cause to be done such
further acts that may be reasonably necessary or advisable in the reasonable
opinion of the Administrative Agent to carry out more effectively the provisions
and purposes of this Agreement, the Security Instruments and the other Loan
Documents.

         8.18 EMPLOYEE BENEFIT PLANS.

                  (a) With reasonable promptness, and in any event within thirty
         (30) days thereof, give notice to the Administrative Agent of (a) the
         establishment of any new Pension Plan (which notice shall include a
         copy of such plan), (b) the commencement of contributions to any
         Employee Benefit Plan to which the Parent or any of its ERISA
         Affiliates was not previously contributing, (c) any material increase
         in the benefits of any existing Employee Benefit Plan, (d) each funding
         waiver request filed with respect to any Pension Plan and all
         communications received or sent by the Parent or any ERISA Affiliate
         with respect to such request and (e) the failure of the Parent or any
         ERISA Affiliate to make a required installment or payment under Section
         302 of ERISA or Section 412 of the Code (in the case of Employee
         Benefit Plans regulated by the Code or ERISA) or under any Foreign
         Benefit

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         Law (in the case of Employee Benefit Plans regulated by any Foreign
         Benefit Law) by the due date;

                  (b) Promptly and in any event within fifteen (15) days of
         becoming aware of the occurrence or forthcoming occurrence of any (a)
         Termination Event or (b) nonexempt "prohibited transaction," as such
         term is defined in Section 406 of ERISA or Section 4975 of the Code, in
         connection with any Employee Benefit Plan or any trust created
         thereunder, deliver to the Administrative Agent a notice specifying the
         nature thereof, what action the Parent or any ERISA Affiliate has
         taken, is taking or proposes to take with respect thereto and, when
         known, any action taken or threatened by the Internal Revenue Service,
         the Department of Labor or the PBGC with respect thereto; and

                  (c) With reasonable promptness but in any event within fifteen
         (15) days for purposes of clauses (a), (b) and (c), deliver to the
         Administrative Agent copies of (a) any unfavorable determination letter
         from the Internal Revenue Service regarding the qualification of an
         Employee Benefit Plan under Section 401(a) of the Code, (b) all notices
         received by the Parent or any ERISA Affiliate of the PBGC's or any
         Governmental Authority's intent to terminate any Pension Plan or to
         have a trustee appointed to administer any Pension Plan, (c) each
         Schedule B (Actuarial Information) to the annual report (Form 5500
         Series) filed by the Parent or any ERISA Affiliate with the Internal
         Revenue Service with respect to each Employee Benefit Plan and (d) all
         notices received by the Parent or any ERISA Affiliate from a
         Multiemployer Plan sponsor concerning the imposition or amount of
         withdrawal liability pursuant to Section 4202 of ERISA. The Borrower
         will notify the Administrative Agent in writing within five (5)
         Business Days of the Borrower or any ERISA Affiliate obtaining
         knowledge or reason to know that the Borrower or any ERISA Affiliate
         has filed or intends to file a notice of intent to terminate any
         Pension Plan under a distress termination within the meaning of Section
         4041(c) of ERISA.

         8.19 CONTINUED OPERATIONS. Continue at all times to conduct its
business and engage principally in the same Line or Lines of Business
substantially as heretofore conducted.

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                                   ARTICLE IX

                               NEGATIVE COVENANTS

         Until the Facility Termination Date, unless the Required Lenders shall
otherwise consent in writing, the Parent will not, nor will it permit any
Subsidiary to:

         9.1 FINANCIAL COVENANTS.

                  (a) CONSOLIDATED NET WORTH. Permit Consolidated Net Worth to
         be less than (i) $725,000,000 from the Closing Date until (but
         excluding) the last day of the fiscal quarter that includes the Closing
         Date (the "Closing Date Quarter"), and (ii) as at the last day of each
         fiscal quarter of the Borrower ending after the Closing Date and until
         (but excluding) the last day of the next following fiscal quarter of
         the Borrower, the sum of (A) the amount of Consolidated Net Worth
         required to be maintained pursuant to this Section 9.1(a) as at the end
         of the immediately preceding fiscal quarter (or, in the case of the
         Closing Date Quarter, required to be maintained as of the Closing
         Date), plus (B) 50% of Consolidated Net Income (with no reduction for
         net losses during any period) for the fiscal quarter of the Borrower
         ending on such day (including within "Consolidated Net Income" certain
         items otherwise excluded, as provided for in the definition of
         "Consolidated Net Income"), plus (C) 100% of the aggregate amount of
         all increases after the Closing Date in the stated capital and
         additional paid-in capital accounts of the Borrower resulting from the
         issuance of equity securities or other capital investments, but
         excluding amounts recorded with respect to employee benefit plans and
         by reason of stock dividends paid to holders of the Parent's 6 1/2%
         Convertible Preferred Stock.

                  (b) CONSOLIDATED SENIOR LEVERAGE RATIO. Permit at any time the
         Consolidated Senior Leverage Ratio to be greater than .50 to 1.00.

                  (c) CONSOLIDATED LEVERAGE RATIO. Permit at any time the
         Consolidated Leverage Ratio to be greater than .55 to 1.00.

                  (d) CONSOLIDATED INTEREST COVERAGE RATIO. Permit the
         Consolidated Interest Coverage Ratio to be less than 2.00 to 1.00.

                  (e) CAPITAL EXPENDITURES. Make or become committed to make
         Capital Expenditures which exceed $75,000,000 in the aggregate in any
         Fiscal Year of the Borrower (on a non-cumulative basis, with the effect
         that amounts not expended in any Fiscal Year may not be carried forward
         to a subsequent period).

         9.2 ACQUISITIONS. Enter into any agreement, contract, binding
commitment or other arrangement providing for any Acquisition, or take any
action to solicit the tender of securities or proxies in respect thereof in
order to effect any Acquisition, unless (i) the Person to be (or whose assets
are to be) acquired does not oppose such Acquisition and the Line or Lines of
Business of the

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Person to be acquired are substantially the same as one or more Line or Lines of
Business conducted by the Parent and its Subsidiaries, (ii) no Default or Event
of Default shall have occurred and be continuing either immediately prior to or
immediately after giving effect to such Acquisition, (iii) the Person acquired
shall be a wholly-owned Subsidiary, or be merged into the Borrower or a
wholly-owned Subsidiary, immediately upon consummation of the Acquisition (or if
assets are being acquired, the acquiror shall be the Parent or a wholly-owned
Subsidiary), and (iv) the Cost of Acquisition does not exceed $50,000,000.

         9.3 LIENS. Incur, create or permit to exist any Lien, charge or other
encumbrance of any nature whatsoever with respect to any property or assets now
owned or hereafter acquired by the Parent or any Subsidiary, other than

                  (a) Liens otherwise existing as of the date hereof and as set
         forth in SCHEDULE 8.7;

                  (b) Liens imposed by law for taxes, assessments or charges of
         any Governmental Authority for claims not yet due or which are being
         contested in good faith by appropriate proceedings diligently conducted
         and with respect to which adequate reserves or other appropriate
         provisions are being maintained in accordance with GAAP and which Liens
         are not yet enforceable against other creditors;

                  (c) statutory Liens of landlords and Liens of carriers,
         warehousemen, mechanics, materialmen and other Liens imposed by law or
         created in the ordinary course of business and in existence less than
         90 days from the date of creation thereof for amounts not yet due or
         which are being contested in good faith by appropriate proceedings
         diligently conducted and with respect to which adequate reserves or
         other appropriate provisions are being maintained in accordance with
         GAAP and which Liens are not yet enforceable against other creditors;

                  (d) Liens incurred or deposits made in the ordinary course of
         business (including, without limitation, surety bonds and appeal bonds)
         in connection with workers' compensation, unemployment insurance and
         other types of social security benefits or to secure the performance of
         tenders, bids, leases, contracts (other than for the repayment of
         Indebtedness), statutory obligations and other similar obligations or
         arising as a result of progress payments under government contracts;

                  (e) easements (including reciprocal easement agreements and
         utility agreements), rights-of-way, covenants, consents, reservations,
         encroachments, variations and zoning and other restrictions, charges or
         encumbrances (whether or not recorded), which do not interfere
         materially with the ordinary conduct of the business of the Borrower or
         any Subsidiary and which do not materially detract from the value of
         the property to which they attach or materially impair the use thereof
         to the Borrower or any Subsidiary;

                  (f) subject to SECTION 10.1(i), Liens arising in connection
         with court proceedings provided the execution of such Liens are being
         contested in good faith by appropriate

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         proceedings, any foreclosure action either does not exist or is
         effectively stayed and the Parent has established adequate reserves
         therefor on the books its books in accordance with GAAP;

                  (g) unexercised rights of setoff, bankers' liens and other
         rights arising solely by operation of law and not created to secure
         Indebtedness;

                  (h) to the extent considered a Lien on assets of the Parent or
         any Subsidiary, Liens arising in connection with the sale, factoring or
         securitization of leases, receivables or other accounts in the ordinary
         course of business;

                  (i) to the extent considered a Lien on assets of the Parent or
         any Subsidiary, the interest of the lessee or purchaser in assets of
         the Parent or any Subsidiary leased to such lessee under a lease or
         sold to such purchaser under the terms of a conditional sale
         arrangement;

                  (j) purchase money Liens to secure Indebtedness permitted
         under SECTION 9.10(f) and incurred to purchase fixed assets, provided
         such Indebtedness represents not less than 75% of the purchase price of
         such assets as of the date of purchase thereof and no property other
         than the assets so purchased secures such Indebtedness;

                  (k) Liens arising in connection with Capital Leases permitted
         under SECTION 9.10(f), provided that no such Lien shall extend to any
         Collateral or to any other property other than the assets subject to
         such Capital Leases;

                  (l) Liens securing Indebtedness of a Subsidiary to the Parent
         or to another wholly-owned Subsidiary; and

                  (m) to the extent deemed a Lien, Liens arising in transactions
         permitted under SECTION 9.8.

         9.4 RESTRICTED PAYMENTS. Make any Restricted Payment or apply or set
apart any of their assets therefor or agree to do any of the foregoing, unless,
after giving effect thereto, (i) the aggregate amount of Restricted Payments
made after the Closing Date to and including the date of making the Restricted
Payment in questions would not exceed the sum of: (x) $50,000,000; (y) fifty
percent (50%) of cumulative Consolidated Net Income for each Fiscal Year ending
after the Closing Date (less 100% thereof in case of a deficit); and (z) the net
cash proceeds received by the Parent from the sale of common stock subsequent to
the Closing Date or the net cash proceeds received by the Parent from the sale
of securities convertible into common stock of the Parent upon conversion
thereof subsequent to the Closing Date; (ii) no Default or Event of Default
would exist; and (iii) the Parent could incur at least $1.00 of additional
Indebtedness under SECTION 9.10.

         9.5 MERGER OR CONSOLIDATION. Merge or consolidate with, or sell all or
substantially all of its assets to, any Person, except that:

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                  (a) The Parent may merge or consolidate with any Person,
         provided that immediately after giving effect thereto (i) the Parent is
         the successor corporation, (ii) there shall exist no Default or Event
         of Default, and (iii) the Parent could incur at least $1.00 of
         additional Indebtedness under SECTION 9.10; and

                  (b) so long as no Default or Event of Default has occurred and
         is continuing, any Subsidiary may merge with any other Subsidiary or
         the Parent.

         9.6 SALE OF ASSETS. (a) Other than in the ordinary course of business,
including sales of receivables, leases, rental equipment and the residual
interest therein, and the sale of obsolete equipment or equipment which is worn
out or no longer used or useful, and other than as permitted by SECTION 9.5,
sell, lease, transfer or otherwise (including by way of merger) dispose of
(collectively a "Disposition") any assets, including capital stock of
Subsidiaries, in one or a series of transactions, to any Person, (i) if in any
Fiscal Year, after giving effect to such Disposition, the aggregate net book
value of assets subject to Dispositions during such Fiscal Year would exceed
seven and one-half percent (7 1/2%) of Consolidated Total Assets as of the
immediately preceding Fiscal Year or (ii) if, after giving effect to such
Disposition and all prior Dispositions since the Closing Date, the aggregate net
book value of assets subject to Dispositions would exceed, on a cumulative
basis, fifteen percent (15%) of Consolidated Total Assets as of the end of the
immediately preceding Fiscal Year or (iii) if a Default or Event of Default
exists or (iv) if the Borrower cannot incur at least $1.00 of additional Debt
pursuant to SECTION 9.10.

         (b) Notwithstanding the foregoing limitations in clause (a) of this
SECTION 9.6 the Parent and Subsidiaries may make Dispositions among themselves.

         9.7 TRANSACTIONS WITH AFFILIATES. Enter into, or be a party to any
transaction with any Affiliate of the Parent or any Subsidiary (which Affiliate
is not the Parent or a Subsidiary or a joint venture or other Person in which
the Parent or any Subsidiary owns less than a majority interest and which, if it
were a Subsidiary, would not be a Material Subsidiary), except as permitted by
law and in the ordinary course of business and pursuant to reasonable terms
which are no less favorable to the Parent or such Subsidiary than would be
obtained in a comparable arm's length transaction with a Person which is not an
Affiliate; PROVIDED, that the foregoing shall not affect the ability of the
Parent or any Subsidiary from determining, in its sole discretion, the amount or
form of executive or directors compensation from time to time or from effecting
any reorganization of the corporate or ownership structure of its Subsidiaries.

         9.8 SALE AND LEASEBACK. Enter into any arrangement, directly or
indirectly, whereby the Parent or any Subsidiary of the Parent shall sell or
transfer any real property owned by it in order then or thereafter to lease such
real property or lease other real property that the Parent or any Subsidiary of
the Parent intends to use for substantially the same purpose as the real
property being sold or transferred; PROVIDED, HOWEVER, so long as no Default or
Event of Default has occurred and is continuing or would exist as a result of
such a transaction, the Parent and its Subsidiaries shall be permitted to (a)
enter into a sale and leaseback transaction pertaining to the Parent's
"Corporate Office Building" located at 951 Yamato Road, Boca Raton, Florida
33431 and the Parent's "Boca

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Operations Center" located at 6600 Congress Avenue, Boca Raton, Florida 33487 so
long as the purchase price for each such sale and leaseback is no less than the
fair market value of the applicable asset at the time of the sale and (b) other
sale and leaseback transactions so long as in the case of this clause (b) (i)
the aggregate net cash proceeds received for all such sales or dispositions does
not exceed $5,000,000 during the term of this Agreement; and (ii) the purchase
price for each such sale and leaseback is no less than the fair market value of
the applicable asset at the time of the sale.

         9.9 SUBORDINATED DEBT AND SENIOR NOTES. Amend, supplement or otherwise
modify the terms of any of the Consolidated Subordinated Indebtedness or Senior
Notes or voluntarily prepay, redeem or repurchase any of the Consolidated
Subordinated Indebtedness or Senior Notes; PROVIDED, HOWEVER, (a) the Parent or
such Subsidiary may amend, supplement or otherwise modify the terms of any of
the Consolidated Subordinated Indebtedness or Senior Notes if after giving
effect to such amendment, supplement or modification, the terms of such
Consolidated Subordinated Indebtedness or Senior Notes are no less favorable to
the Parent, such Subsidiary or the Lenders than the terms of this Agreement,
such amendment, supplement or modification does not affect the subordination
provisions in any manner which is materially adverse to the Administrative Agent
or any of the Lenders, and (b) the Parent or any of its Subsidiaries shall be
permitted to convert such Indebtedness into equity (and make any necessary cash
payments associated with such conversion for fractional shares) or refinance
such Consolidated Subordinated Indebtedness or Senior Notes with other
Indebtedness so long as (i) in the case of a refinancing of Consolidated
Subordinated Indebtedness or Senior Notes, no Default or Event of Default has
occurred and is continuing or would exist as a result thereof and (ii) the terms
and conditions of such Indebtedness (including, without limitation, the
principal amount of such Indebtedness, the interest rate, the maturity,
covenants and defaults) are no less favorable to the Parent or such Subsidiary
as the terms and conditions contained in this Agreement; and PROVIDED, FURTHER,
and subject to compliance by the Parent with SECTION 2.6, the Parent or such
Subsidiary shall be permitted to make prepayments on such Consolidated
Subordinated Indebtedness or Senior Notes to the extent such Person is
contractually obligated to make or offer to make such prepayments as a result of
a change of control or similar event.

         9.10 INDEBTEDNESS. Incur, create, assume or permit to exist any
Indebtedness, howsoever evidenced, except:

                  (a) Indebtedness, including available and unused amounts,
         existing as of the Closing Date as set forth in SCHEDULE 7.6;

                  (b) Indebtedness owing to the Administrative Agent or any
         Lender in connection with this Agreement, any Note or other Loan
         Document;

                  (c) the endorsement of negotiable instruments for deposit or
         collection or similar transactions in the ordinary course of business;

                  (d) Indebtedness of a Subsidiary owed to the Borrower or
         another Subsidiary;

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                  (e) additional unsecured Indebtedness in an aggregate
         outstanding principal amount not to exceed $150,000,000;

                  (f) purchase money indebtedness and Capital Leases described
         in SECTION 9.3(j) and (k) not to exceed an aggregate outstanding
         principal amount at any time of $25,000,000;

                  (g) to the extent deemed Indebtedness sales and leaseback
         transactions permitted under SECTION 9.8;

                  (h) Indebtedness extending the maturity of, or renewing,
         refunding or refinancing, in whole or in part, Indebtedness incurred
         under clauses (a), (e) and (g) of this SECTION 9.10, provided that the
         terms of any such extension, renewal, refunding or refinancing
         Indebtedness (and of any agreement or instrument entered into in
         connection therewith) are no less favorable to the Administrative Agent
         and the Lenders than the terms of the Indebtedness as in effect prior
         to such action, and provided further that (1) the aggregate principal
         amount of such Indebtedness shall not be increased by such action and
         the interest rate or rates and fees payable on such extended, renewed,
         refunding or refinanced Indebtedness shall be at a market rate for
         similarly rated companies, (2) the group of direct or contingent
         obligors on such Indebtedness shall not be expanded as a result of any
         such action, and (3) immediately before and immediately after giving
         effect to any such extension, renewal, refunding or refinancing, no
         Default or Event of Default shall have occurred and be continuing.

         9.11 COMPLIANCE WITH ERISA, THE CODE AND FOREIGN BENEFIT LAWS. With
respect to any Pension Plan, Employee Benefit Plan or Multiemployer Plan:

                  (a) permit the occurrence of any Termination Event which would
         result in a liability on the part of the Borrower or any ERISA
         Affiliate to the PBGC or to any Governmental Authority; or

                  (b) permit the present value of all benefit liabilities under
         all Pension Plans to exceed the current value of the assets of such
         Pension Plans allocable to such benefit liabilities; or

                  (c) permit any accumulated funding deficiency (as defined in
         Section 302 of ERISA and Section 412 of the Code) with respect to any
         Pension Plan, whether or not waived; or

                  (d) fail to make any contribution or payment to any
         Multiemployer Plan which the Borrower or any ERISA Affiliate may be
         required to make under any agreement relating to such Multiemployer
         Plan, or any law pertaining thereto; or

                  (e) engage, or permit the Parent or any ERISA Affiliate to
         engage, in any prohibited transaction under Section 406 of ERISA or
         Section 4975 of the Code for which

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         a civil penalty pursuant to Section 502(i) of ERISA or a tax pursuant
         to Section 4975 of the Code may be imposed in a material amount; or

                  (f) permit (i) the establishment of any Employee Benefit Plan
         providing post-retirement welfare benefits or (ii) establish or amend
         any Employee Benefit Plan which establishment or amendment could result
         in liability to the Parent or any ERISA Affiliate or materially
         increase the obligation of the Parent or any ERISA Affiliate to a
         Multiemployer Plan; or

                  (g) fail, or permit the Borrower or any ERISA Affiliate to
         fail, to establish, maintain and operate each Employee Benefit Plan in
         compliance in all material respects with the provisions of ERISA, the
         Code, all applicable Foreign Benefit Laws and all other applicable laws
         and the regulations and interpretations thereof.

         9.12. FISCAL YEAR. Change its Fiscal Year.

         9.13. DISSOLUTION, ETC. Wind up, liquidate or dissolve (voluntarily or
involuntarily) or commence or suffer any proceedings seeking any such winding
up, liquidation or dissolution, except in connection with a merger or
consolidation permitted pursuant to SECTION 9.5.

         9.14. RATE HEDGING OBLIGATIONS. Incur any Rate Hedging Obligations or
enter into any agreements, arrangements, devices or instruments relating to Rate
Hedging Obligations, except for Rate Hedging Obligations incurred to limit risks
of currency or interest rate fluctuations to which the Parent and its
Subsidiaries are otherwise subject by virtue of the operations of their
businesses and not for speculative purposes.

         9.15. NEGATIVE PLEDGE CLAUSES. Enter into or cause, suffer or permit to
exist any agreement with any Person other than the Administrative Agent and the
Lenders pursuant to this Agreement or any other Loan Documents which prohibits
or limits the ability of any of the Parent or any Subsidiary to create, incur,
assume or suffer to exist any Lien upon any of its property, assets or revenues,
whether now owned or hereafter acquired except for those contained in agreements
described in SECTION 9.14 or in the Note Agreement (1993) or the Note Agreement
(1996); PROVIDED that the Parent and any Subsidiary may enter into or cause,
suffer or permit to exist any such an agreement in connection with, (i)
Indebtedness permitted under SECTIONS 9.10(a), (e), (f) or (h) and (ii)
securitizations or other receivables financings (including any documents related
thereto) or sale and leaseback transactions.

         9.16. RESTRICTIONS ON INVESTMENTS. Make additional cash Investments
after the Closing Date in its Subsidiaries which are not Domestic Subsidiaries,
whether in the form of intercompany debt or in the form of contributions to the
stockholder's equity of such Subsidiaries, except to the extent that the
aggregate net increase in such intercompany Indebtedness and stockholder's
equity after the Closing Date as a result of such cash Investments does not
exceed an amount equal to the sum of (i) $62,500,000, PLUS (ii) the aggregate
amount of all cash dividends paid by the Subsidiaries and received by the Parent
after the Closing Date; provided, that without limiting the foregoing a

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Subsidiary which is not a Domestic Subsidiary (a "Foreign Subsidiary") may make
additional cash investments in a Foreign Subsidiary after the Closing Date as
long as such investing Foreign Subsidiary is not itself a Borrower and the funds
utilized to make any such investment were not, directly or indirectly, borrowed
from the Lenders under this Agreement.

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                                    ARTICLE X

                       EVENTS OF DEFAULT AND ACCELERATION

         10.1 EVENTS OF DEFAULT. If any one or more of the following events
(herein called "Events of Default") shall occur for any reason whatsoever (and
whether such occurrence shall be voluntary or involuntary or come about or be
effected by operation of law or pursuant to or in compliance with any judgment,
decree or order of any court or any order, rule or regulation of any
Governmental Authority), that is to say:

                  (a) if default shall be made in the due and punctual payment
         of the principal of any Loan, Reimbursement Obligation or other
         Obligation, when and as the same shall be due and payable whether
         pursuant to any provision of ARTICLE II or ARTICLE III or ARTICLE IV,
         at maturity, by acceleration or otherwise; or

                  (b) if default shall be made in the due and punctual payment
         of any amount of interest on any Loan, Reimbursement Obligation or
         other Obligation or of any fees or other amounts payable to any of the
         Lenders or the Administrative Agent within three (3) days of the date
         on which the same shall be due and payable; or

                  (c) if default shall be made in the performance or observance
         of any covenant set forth in SECTION 8.8, 8.12, 8.13 or ARTICLE IX;

                  (d) if a default shall be made in the performance or
         observance of, or shall occur under, any covenant, agreement or
         provision contained in this Agreement or the Notes (other than as
         described in clauses (a), (b) or (c) above) and such default shall
         continue for thirty (30) or more days after the earlier of receipt of
         notice of such default by the Authorized Representative from the
         Administrative Agent or an Executive Officer of the Parent becomes
         aware of such default, or if a default shall be made in the performance
         or observance of, or shall occur under, any covenant, agreement or
         provision contained in any of the other Loan Documents (beyond any
         applicable grace period, if any, contained therein) or in any
         instrument or document evidencing or creating any obligation, guaranty,
         or Lien in favor of the Administrative Agent or any of the Lenders or
         delivered to the Administrative Agent or any of the Lenders in
         connection with or pursuant to this Agreement or any of the
         Obligations, or if any Loan Document ceases to be in full force and
         effect (other than as expressly provided for hereunder or thereunder or
         with the express written consent of the Administrative Agent), or if
         without the written consent of the Lenders, this Agreement or any other
         Loan Document shall be disaffirmed or shall terminate, be terminable or
         be terminated or become void or unenforceable for any reason whatsoever
         (other than as expressly provided for hereunder or thereunder or with
         the express written consent of the Administrative Agent or other than
         as not enforceable pursuant to applicable law); or

                  (e) if there shall occur, other than by reason of a change of
         control, (i) a default, which is not cured or waived, in the payment of
         any principal, interest, premium or other

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         amount with respect to any Indebtedness (other than the Loans and other
         Obligations) of the Parent or any Material Subsidiary in an amount not
         less than $10,000,000 in the aggregate principal amount outstanding, or
         (ii) a default, which is not cured or waived, in the performance,
         observance or fulfillment of any term or covenant contained in any
         agreement or instrument under or pursuant to which any such
         Indebtedness may have been issued, created, assumed, guaranteed or
         secured by the Parent or any Material Subsidiary, or (iii) any other
         event of default as specified in any agreement or instrument under or
         pursuant to which any such Indebtedness may have been issued, created,
         assumed, guaranteed or secured by the Borrower or any Material
         Subsidiary, and such default or event of default shall continue for
         more than the period of grace, if any, therein specified, or such
         default or event of default shall permit the holder of any such
         Indebtedness (or any agent or trustee acting on behalf of one or more
         holders) to accelerate the maturity thereof; or

                  (f) if any representation, warranty or other statement of fact
         contained in any Loan Document or in any writing, certificate, report
         or statement at any time furnished to the Administrative Agent or any
         Lender by or on behalf of the Parent or any Material Subsidiary
         pursuant to or in connection with any Loan Document, or otherwise,
         shall be false or misleading in any material respect when given; or

                  (g) if the Parent or any Material Subsidiary shall be unable
         to pay its debts generally as they become due; file a petition to take
         advantage of any insolvency statute; make an assignment for the benefit
         of its creditors; commence a proceeding for the appointment of a
         receiver, trustee, liquidator or conservator of itself or of the whole
         or any substantial part of its property; file a petition or answer
         seeking liquidation, reorganization or arrangement or similar relief
         under the federal bankruptcy laws or any other applicable law or
         statute; or

                  (h) if a court of competent jurisdiction shall enter an order,
         judgment or decree appointing a custodian, receiver, trustee,
         liquidator or conservator of the Parent or any Material Subsidiary or
         of the whole or any substantial part of its properties and such order,
         judgment or decree continues unstayed and in effect for a period of
         sixty (60) days, or approve a petition filed against the Parent or any
         Material Subsidiary seeking liquidation, reorganization or arrangement
         or similar relief under the federal bankruptcy laws or any other
         applicable law or statute of the United States of America or any state,
         which petition is not dismissed within sixty (60) days; or if, under
         the provisions of any other law for the relief or aid of debtors, a
         court of competent jurisdiction shall assume custody or control of the
         Parent or any Material Subsidiary or of the whole or any substantial
         part of its properties, which control is not relinquished within sixty
         (60) days; or if there is commenced against the Parent or any Material
         Subsidiary any proceeding or petition seeking reorganization,
         arrangement or similar relief under the federal bankruptcy laws or any
         other applicable law or statute of the United States of America or any
         state which proceeding or petition remains undismissed for a period of
         sixty (60) days; or if the Parent or any Material Subsidiary takes any
         action to indicate its consent to or approval of any such proceeding or
         petition; or

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                  (i) if (i) one or more judgments or orders where the amount
         not covered by insurance (or the amount as to which the insurer denies
         liability) is in excess of $1,000,000 is rendered against the Parent or
         any Material Subsidiary, or (ii) there is any attachment, injunction or
         execution against any of the Parent's or Material Subsidiaries'
         properties for any amount in excess of $1,000,000 in the aggregate; and
         such judgment, attachment, injunction or execution remains unpaid,
         unstayed, undischarged, unbonded or undismissed for a period of thirty
         (30) days; or

                  (j) if the Parent or any Material Subsidiary shall, other than
         in the ordinary course of business (as determined by past practices),
         suspend all or any part of its operations material to the conduct of
         the business of the Borrower or such Material Subsidiary for a period
         of more than 60 days;

then, and in any such event and at any time thereafter, if such Event of Default
or any other Event of Default shall have not been cured or waived,

                  (A) either or both of the following actions may be taken: (i)
         the Administrative Agent may, and at the direction of the Required
         Lenders shall, declare any obligation of the Lenders and the Issuing
         Bank to make further Loans or to issue additional Letters of Credit
         terminated, whereupon the obligation of each Lender to make further
         Loans and of the Issuing Bank to issue additional Letters of Credit,
         hereunder shall terminate immediately, and (ii) the Administrative
         Agent shall at the direction of the Required Lenders, at their option,
         declare by notice to the Parent any or all of the Obligations to be
         immediately due and payable, and the same, including all interest
         accrued thereon and all other obligations of the Parent to the
         Administrative Agent and the Lenders, shall forthwith become
         immediately due and payable without presentment, demand, protest,
         notice or other formality of any kind, all of which are hereby
         expressly waived, anything contained herein or in any instrument
         evidencing the Obligations to the contrary notwithstanding; PROVIDED,
         however, that notwithstanding the above, if there shall occur an Event
         of Default under clause (g) or (h) above, then the obligation of the
         Lenders to make Loans and of the Issuing Bank to issue Letters of
         Credit hereunder shall automatically terminate and any and all of the
         Obligations shall be immediately due and payable without the necessity
         of any action by the Administrative Agent or the Required Lenders or
         notice to the Administrative Agent or the Lenders;

                  (B) The Parent shall, upon demand of the Administrative Agent
         or the Required Lenders, deposit cash with the Administrative Agent in
         an amount equal to the undrawn amount of any Letter of Credit, as
         collateral security for the repayment of any future drawings or
         payments under such Letters of Credit, and such amounts shall be held
         by the Administrative Agent pursuant to the terms of the LC Account
         Agreement; and

                  (C) the Administrative Agent and each of the Lenders shall
         have all of the rights and remedies available under the Loan Documents
         or under any applicable law.

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         10.2 ADMINISTRATIVE AGENT TO ACT. In case any one or more Events of
Default shall occur and not have been waived, the Administrative Agent may, and
at the direction of the Required Lenders shall, proceed to protect and enforce
their rights or remedies either by suit in equity or by action at law, or both,
whether for the specific performance of any covenant, agreement or other
provision contained herein or in any other Loan Document, or to enforce the
payment of the Obligations or any other legal or equitable right or remedy.

         10.3 CUMULATIVE RIGHTS. No right or remedy herein conferred upon the
Lenders or the Administrative Agent is intended to be exclusive of any other
rights or remedies contained herein or in any other Loan Document, and every
such right or remedy shall be cumulative and shall be in addition to every other
such right or remedy contained herein and therein or now or hereafter existing
at law or in equity or by statute, or otherwise.

         10.4 NO WAIVER. No course of dealing between the Parent and any Lender
or the Administrative Agent or any failure or delay on the part of any Lender or
the Administrative Agent in exercising any rights or remedies under any Loan
Document or otherwise available to it shall operate as a waiver of any rights or
remedies and no single or partial exercise of any rights or remedies shall
operate as a waiver or preclude the exercise of any other rights or remedies
hereunder or of the same right or remedy on a future occasion.

         10.5 ALLOCATION OF PROCEEDS. If an Event of Default has occurred and
not been waived, and the maturity of the Notes has been accelerated pursuant to
ARTICLE X hereof, all payments received by the Administrative Agent hereunder,
in respect of any principal of or interest on the Obligations or any other
amounts payable by the Parent hereunder, shall be applied by the Administrative
Agent in the following order:

                  (a) amounts due to the Lenders and each Issuing Bank pursuant
         to SECTIONS 4.6(a), 4.6(b), 4.6(c) and 12.5;

                  (b) amounts due to the Administrative Agent pursuant to
         SECTION 4.6(d);

                  (c) payments of interest on Loans and Reimbursement
         Obligations, to be applied for the ratable benefit of the Lenders (with
         amounts payable in respect of Swing Line Outstandings being included in
         such calculation and paid to Bank of America);

                  (d) payments of principal of Loans and Reimbursement
         Obligations, to be applied for the ratable benefit of the Lenders (with
         amounts payable in respect of Swing Line Outstandings being included in
         such calculation and paid to Bank of America);

                  (e) payments of cash amounts to the Administrative Agent in
         respect of outstanding Letters of Credit pursuant to SECTION 10.1(B);

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                  (f) amounts due to the Issuing Bank, the Administrative Agent
         and the Lenders pursuant to SECTIONS 3.2(h), 8.16 and 12.9;

                  (g) payments of all other amounts due under any of the Loan
         Documents, if any, to be applied for the ratable benefit of the
         Lenders;

                  (h) amounts due to any of the Lenders or their affiliates in
         respect of Obligations consisting of liabilities under any Swap
         Agreement with any of the Lenders or their affiliates on a pro rata
         basis according to the amounts owed; and

                  (i) any surplus remaining after application as provided for
         herein, to the Parent or otherwise as may be required by applicable
         law.

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                                   ARTICLE XI

                            THE ADMINISTRATIVE AGENT

         11.1 APPOINTMENT, POWERS, AND IMMUNITIES. Each Lender hereby
irrevocably appoints and authorizes the Administrative Agent to act as its agent
under this Agreement and the other Loan Documents with such powers and
discretion as are specifically delegated to the Administrative Agent by the
terms of this Agreement and the other Loan Documents, together with such other
powers as are reasonably incidental thereto. The Administrative Agent (which
term as used in this sentence and in SECTION 11.5 and the first sentence of
SECTION 11.6 hereof shall include its affiliates and its own and its affiliates'
officers, directors, employees, and agents):

                  (a) shall not have any duties or responsibilities except those
         expressly set forth in this Agreement and shall not be a trustee or
         fiduciary for any Lender;

                  (b) shall not be responsible to the Lenders for any recital,
         statement, representation, or warranty (whether written or oral) made
         in or in connection with any Loan Document or any certificate or other
         document referred to or provided for in, or received by any of them
         under, any Loan Document, or for the value, validity, effectiveness,
         genuineness, enforceability, or sufficiency of any Loan Document, or
         any other document referred to or provided for therein or for any
         failure by any Borrower or any other Person to perform any of its
         obligations thereunder;

                  (c) shall not be responsible for or have any duty to
         ascertain, inquire into, or verify the performance or observance of any
         covenants or agreements by any Borrower or the satisfaction of any
         condition or to inspect the property (including the books and records)
         of any Borrower or any of its Subsidiaries or affiliates;

                  (d) shall not be required to initiate or conduct any
         litigation or collection proceedings under any Loan Document; and

                  (e) shall not be responsible for any action taken or omitted
         to be taken by it under or in connection with any Loan Document, except
         for its own gross negligence or willful misconduct.

The Administrative Agent may employ agents and attorneys-in-fact and shall not
be responsible for the negligence or misconduct of any such agents or
attorneys-in-fact selected by it with reasonable care.

         11.2 RELIANCE BY ADMINISTRATIVE AGENT. The Administrative Agent shall
be entitled to rely upon any certification, notice, instrument, writing, or
other communication (including, without limitation, any thereof by telephone or
telefacsimile) believed by it to be genuine and correct and to have been signed,
sent or made by or on behalf of the proper Person or Persons, and upon advice
and statements of legal counsel (including counsel for any Borrower),
independent accountants, and

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other experts selected by the Administrative Agent. The Administrative Agent may
deem and treat the payee of any Note as the holder thereof for all purposes
hereof unless and until the Administrative Agent receives and accepts an
Assignment and Acceptance executed in accordance with SECTION 12.1 hereof. As to
any matters not expressly provided for by this Agreement, 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 instructions of the Required
Lenders, and such instructions shall be binding on all of the Lenders; PROVIDED,
HOWEVER, that the Administrative Agent shall not be required to take any action
that exposes the Administrative Agent to personal liability or that is contrary
to any Loan Document or applicable law or unless it shall first be indemnified
to its satisfaction by the Lenders against any and all liability and expense
which may be incurred by it by reason of taking any such action.

         11.3 DEFAULTS. The Administrative Agent shall not be deemed to have
knowledge or notice of the occurrence of a Default or Event of Default unless
the Administrative Agent has received written notice from a Lender or the
Borrower specifying such Default or Event of Default and stating that such
notice is a "Notice of Default." In the event that the Administrative Agent
receives such a notice of the occurrence of a Default or Event of Default, the
Administrative Agent shall give prompt notice thereof to the Lenders. The
Administrative Agent shall (subject to SECTION 11.2 hereof) take such action
with respect to such Default or Event of Default as shall reasonably be directed
by the Required Lenders, PROVIDED THAT, unless and until the Administrative
Agent shall have received such directions, the Administrative Agent may (but
shall not be obligated to) take such action, or refrain from taking such action,
with respect to such Default or Event of Default as it shall deem advisable in
the best interest of the Lenders.

         11.4 RIGHTS AS LENDER. With respect to its Revolving Credit Commitment
and the Loans made by it and Letters of Credit issued by it, Bank of America
(and any successor acting as Administrative Agent) in its capacity as a Lender
hereunder shall have the same rights and powers hereunder as any other Lender
and may exercise the same as though it were not acting as the Administrative
Agent, and the term "Lender" or "Lenders" shall, unless the context otherwise
indicates, include the Administrative Agent in its individual capacity. Bank of
America (and any successor acting as Administrative Agent) and its affiliates
may (without having to account therefor to any Lender) accept deposits from,
lend money to, make investments in, provide services to, and generally engage in
any kind of lending, trust, or other business with the Parent or any of its
Subsidiaries or affiliates as if it were not acting as Administrative Agent, and
Bank of America (and any successor acting as Administrative Agent) and its
affiliates may accept fees and other consideration from the Parent or any of its
Subsidiaries or affiliates for services in connection with this Agreement or
otherwise without having to account for the same to the Lenders.

         11.5 INDEMNIFICATION. The Lenders agree to indemnify the Administrative
Agent (to the extent not reimbursed under SECTION 12.9 hereof, but without
limiting the obligations of the Borrowers under such Section) ratably in
accordance with their respective Revolving Credit Commitments, for any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses (including attorneys' fees), or disbursements of any kind and
nature

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whatsoever that may be imposed on, incurred by or asserted against the
Administrative Agent (including by any Lender) in any way relating to or arising
out of any Loan Document or the transactions contemplated thereby or any action
taken or omitted by the Administrative Agent under any Loan Document; PROVIDED
that no Lender shall be liable for any of the foregoing to the extent they arise
from the gross negligence or willful misconduct of the Person to be indemnified.
Without limitation of the foregoing, each Lender agrees to reimburse the
Administrative Agent promptly upon demand for its ratable share of any costs or
expenses payable by the Borrowers under SECTION 12.5, to the extent that the
Administrative Agent is not promptly reimbursed for such costs and expenses by
the Borrowers. The agreements contained in this SECTION 11.5 shall survive
payment in full of the Loans and all other amounts payable under this Agreement.

         11.6 NON-RELIANCE ON ADMINISTRATIVE AGENT AND OTHER LENDERS. Each
Lender agrees that it has, independently and without reliance on the
Administrative Agent or any other Lender, and based on such documents and
information as it has deemed appropriate, made its own credit analysis of the
Parent and its Subsidiaries and decision to enter into this Agreement and that
it will, independently and without reliance upon the Administrative Agent or any
other Lender, and based on such documents and information as it shall deem
appropriate at the time, continue to make its own analysis and decisions in
taking or not taking action under the Loan Documents. Except for notices,
reports, and other documents and information expressly required to be furnished
to the Lenders by the Administrative Agent hereunder, the Administrative Agent
shall not have any duty or responsibility to provide any Lender with any credit
or other information concerning the affairs, financial condition, or business of
the Parent or any of its Subsidiaries or affiliates that may come into the
possession of the Administrative Agent or any of its affiliates.

         11.7 RESIGNATION OF ADMINISTRATIVE AGENT. The Administrative Agent may
resign at any time by giving notice thereof to the Lenders and the Borrowers.
Upon any such resignation, the Required Lenders shall have the right, with the
consent of the Parent, so long as there is no Default or Event of Default, and
so long as such consent is not unreasonably withheld, to appoint a successor
Administrative Agent. If no successor Administrative Agent shall have been so
appointed by the Required Lenders and shall have accepted such appointment
within thirty (30) days after the retiring Administrative Agent's giving of
notice of resignation, then the retiring Administrative Agent may, on behalf of
the Lenders, appoint a successor Administrative Agent which shall be a
commercial bank organized under the laws of the United States of America having
combined capital and surplus of at least $500,000,000. Upon the acceptance of
any appointment as Administrative Agent hereunder by a successor, such successor
shall thereupon succeed to and become vested with all the rights, powers,
discretion, privileges, and duties of the retiring Administrative Agent, and the
retiring Administrative Agent shall be discharged from its duties and
obligations hereunder. After any retiring Administrative Agent's resignation
hereunder as Administrative Agent, the provisions of this ARTICLE XI shall
continue in effect for its benefit in respect of any actions taken or omitted to
be taken by it while it was acting as Administrative Agent.

         11.8 OTHER AGENTS. Neither the Syndication Agent nor the Documentation
Agent shall have any duties hereunder other than as a Lender.

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                                   ARTICLE XII

                                  MISCELLANEOUS

         12.1 ASSIGNMENTS AND PARTICIPATIONS.

                  (a) Each Lender may assign to one or more Eligible Assignees
         all or a portion of its rights and obligations under this Agreement
         (including, without limitation, all or a portion of its Loans, its
         Note, its Revolving Credit Commitment); PROVIDED, HOWEVER, that

                           (i) each such assignment shall be to an Eligible
                  Assignee;

                           (ii) except in the case of an assignment to another
                  Lender or an assignment of all of a Lender's rights and
                  obligations under this Agreement, any such partial assignment
                  shall be in an amount at least equal to $5,000,000 or an
                  integral multiple of $1,000,000 in excess thereof;

                           (iii) each such assignment by a Lender shall be of a
                  constant, and not varying, percentage of all of its rights and
                  obligations under this Agreement and the Notes (excluding
                  outstanding Competitive Bid Loans and except that any
                  assignment by Bank of America shall not include its rights,
                  benefits or duties as the Issuing Bank or as the provider of
                  Swing Line Loans); and

                           (iv) the parties to such assignment shall execute and
                  deliver to the Administrative Agent for its acceptance an
                  Assignment and Acceptance in the form of EXHIBIT B hereto,
                  together with any Note subject to such assignment and a
                  processing fee of $3,500.

         Upon execution, delivery, and acceptance of such Assignment and
         Acceptance, the assignee thereunder shall be a party hereto and, to the
         extent of such assignment, have the obligations, rights, and benefits
         of a Lender hereunder and the assigning Lender shall, to the extent of
         such assignment, relinquish its rights and be released from its
         obligations under this Agreement. Upon the consummation of any
         assignment pursuant to this Section, the assignor, the Administrative
         Agent and the Borrowers shall make appropriate arrangements so that, if
         required, new Notes are issued to the assignor and the assignee. If the
         assignee is not incorporated under the laws of the United States of
         America or a state thereof, it shall deliver to the Borrowers and the
         Administrative Agent certification as to exemption from deduction or
         withholding of Taxes in accordance with SECTION 5.6.

                  (b) The Administrative Agent shall maintain at its address
         referred to in SECTION 12.2 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 Lenders and the Revolving Credit
         Commitments of, and principal amount of the Loans owing to, each Lender
         from time to time (the "Register"). The entries in the Register shall
         be conclusive and binding for all

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         purposes, absent manifest error, and the Borrowers, the Administrative
         Agent and the Lenders may treat each Person whose name is recorded in
         the Register as a Lender hereunder for all purposes of this Agreement.
         The Register shall be available for inspection by the Borrower or any
         Lender at any reasonable time and from time to time upon reasonable
         prior notice.

                  (c) Upon its receipt of an Assignment and Acceptance executed
         by the parties thereto, together with any Note subject to such
         assignment and payment of the processing fee, the Administrative Agent
         shall, if such Assignment and Acceptance has been completed and is in
         substantially the form of EXHIBIT B hereto, (i) accept such Assignment
         and Acceptance, (ii) record the information contained therein in the
         Register and (iii) give prompt notice thereof to the parties thereto.

                  (d) Each Lender may sell participations to one or more Persons
         in all or a portion of its rights, obligations or rights and
         obligations under this Agreement (including all or a portion of its
         Revolving Credit Commitment or its Loans); PROVIDED, HOWEVER, that (i)
         such Lender's obligations under this Agreement shall remain unchanged,
         (ii) such Lender shall remain solely responsible to the other parties
         hereto for the performance of such obligations, (iii) the participant
         shall be entitled to the benefit of the yield protection provisions
         contained in ARTICLE V but only to the extent that such Lender selling
         the participation is entitled thereto, and (iv) the Borrowers shall
         continue to deal solely and directly with such Lender in connection
         with such Lender's rights and obligations under this Agreement, and
         such Lender shall retain the sole right to enforce the obligations of
         the Borrowers relating to its Loans and its Note and to approve any
         amendment, modification, or waiver of any provision of this Agreement
         (other than amendments, modifications, or waivers decreasing the amount
         of principal of or the rate at which interest is payable on such Loans
         or Note, extending any scheduled principal payment date or date fixed
         for the payment of interest on such Loans or Note, or extending its
         Revolving Credit Commitment).

                  (e) Notwithstanding any other provision set forth in this
         Agreement, any Lender may at any time assign and pledge all or any
         portion of its Loans and its Note to any Federal Reserve Bank as
         collateral security pursuant to Regulation A and any Operating Circular
         issued by such Federal Reserve Bank. No such assignment shall release
         the assigning Lender from its obligations hereunder.

                  (f) Any Lender may furnish any information concerning the
         Parent or any of its Subsidiaries in the possession of such Lender from
         time to time to assignees and participants (including prospective
         assignees and participants) subject to such assignee or participant
         agreeing to the provisions of SECTION 12.14.

                  (g) Whenever in this Agreement any of the parties hereto is
         referred to, such reference shall be deemed to include the successors
         and permitted assigns of such party and all covenants, provisions and
         agreements by or on behalf of the Borrowers which are contained in the
         Loan Documents shall inure to the benefit of the successors and
         permitted

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         assigns of the Administrative Agent, the Lenders, or any of them. The
         Borrowers may not assign or otherwise transfer to any other Person any
         right, power, benefit, or privilege (or any interest therein) conferred
         hereunder or under any of the other Loan Documents, or delegate (by
         assumption or otherwise) to any other Person any duty, obligation, or
         liability arising hereunder or under any of the other Loan Documents,
         and any such purported assignment, delegation or other transfer shall
         be void.

         12.2 NOTICES. Any notice shall be conclusively deemed to have been
received by any party hereto and be effective (i) on the day on which delivered
(including hand delivery by commercial courier service) to such party (against
receipt therefor), (ii) on the date of transmission to such party, in the case
of notice by telefacsimile (where the proper transmission of such notice is
either acknowledged by the recipient or electronically confirmed by the
transmitting device), or (iii) on the fifth Business Day after the day on which
mailed to such party, if sent prepaid by certified or registered mail, return
receipt requested, in each case delivered, transmitted or mailed, as the case
may be, to the address or telefacsimile number, as appropriate, set forth below
or such other address or number as such party shall specify by notice hereunder:

                  (a)      if to the Borrowers:

                           Sensormatic Electronics Corporation
                           951 Yamato Road
                           Boca Raton, Florida 33431-0700
                           Attn: Treasurer
                           Telephone:       (561) 989-7912
                           Telefacsimile: (561) 989-7215

                  (b)      if to the Administrative Agent:

                           Bank of America, N.A.
                           101 North Tryon Street, 15th Floor
                           NC1-001-15-04
                           Charlotte, North Carolina  28255
                           Attention: Agency Services
                           Telephone:     (704) 388-3919
                           Telefacsimile: (704) 386-9923

                           with a copy to:

                           Bank of America, N.A.
                           100 S.E. Second Street, 14th Floor
                           Miami, Florida 33131
                           Attention: Richard Starke, Credit Products
                           Telephone:     (305) 533-2435
                           Telefacsimile: (305) 533-2437

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                  (c)      if to the Lenders:

                           At the addresses set forth on the signature pages
                           hereof and on the signature page of each Assignment
                           and Acceptance;

         12.3 RIGHT OF SET-OFF; ADJUSTMENTS.

                  (a) Regardless of the adequacy of any collateral, during the
         continuance of any Event or Default, the Borrowers acknowledge that by
         operation of applicable law any deposits or other sums credited by or
         due from any of the Lenders to a Borrower and any securities or other
         property of a Borrower in the possession of such Lender or any
         affiliate may be applied to or set off by such Lender against the
         payment of Obligations and any and all other liabilities, direct or
         indirect, absolute or contingent, due or to become due, now existing or
         hereafter arising, of a Borrower to such Lender.

                  (b) If any Lender (a "benefitted Lender") shall at any time
         receive any payment of all or part of the Loans owing to it, 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
         Lender, if any, in respect of such other Lender's Loans owing to it, or
         interest thereon, such benefitted Lender shall purchase for cash from
         the other Lenders a participating interest in such portion of each such
         other Lender's Loans owing to it, or shall provide such other Lenders
         with the benefits of any such collateral, or the proceeds thereof, as
         shall be necessary to cause such benefitted Lender to share the excess
         payment or benefits of such collateral or proceeds ratably with each of
         the Lenders; PROVIDED, HOWEVER, that if all or any portion of such
         excess payment or benefits is thereafter recovered from such benefitted
         Lender, such purchase shall be rescinded, and the purchase price and
         benefits returned, to the extent of such recovery, but without
         interest. Each Borrower agrees that any Lender so purchasing a
         participation from a Lender pursuant to this SECTION 12.3 may, to the
         fullest extent permitted by law, exercise all of its rights of payment
         (including the right of set-off) with respect to such participation as
         fully as if such Person were the direct creditor of such Borrower in
         the amount of such participation.

         12.4 SURVIVAL. All covenants, agreements, representations and
warranties made herein shall survive the making by the Lenders of the Loans and
the issuance of the Letters of Credit and the execution and delivery to the
Lenders of this Agreement and the Notes and shall continue in full force and
effect so long as any of Obligations remain outstanding or any Lender has any
Revolving Credit Commitment hereunder or the Borrower has continuing obligations
hereunder unless otherwise provided herein.

         12.5 EXPENSES. The Parent agrees to pay on demand all costs and
expenses of the Administrative Agent in connection with the syndication,
preparation, execution, delivery, administration, modification, and amendment of
this Agreement, the other Loan Documents, and the other documents to be
delivered hereunder, including, without limitation, the reasonable fees and

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expenses of counsel for the Administrative Agent (including the cost of internal
counsel) with respect thereto and with respect to advising the Administrative
Agent as to its rights and responsibilities under the Loan Documents. The Parent
further agrees to pay on demand all costs and expenses of the Administrative
Agent and the Lenders, if any (including, without limitation, reasonable
attorneys' fees and expenses and the cost of internal counsel), in connection
with the enforcement (whether through negotiations, legal proceedings, or
otherwise) of the Loan Documents.

         12.6 AMENDMENTS AND WAIVERS. Any provision of this Agreement or any
other Loan Document may be amended or waived if, but only if, such amendment or
waiver is in writing and is signed by the Borrowers or other applicable Person
party to such Loan Document and either the Required Lenders or (as to Loan
Documents other than the Credit Agreement) the Administrative Agent on behalf of
the Required Lenders (and, if ARTICLE XI or the rights or duties of the
Administrative Agent are affected thereby, by the Administrative Agent);
PROVIDED that no such amendment or waiver shall, unless signed by all the
Lenders, (i) increase the Revolving Credit Commitments of the Lenders or the
Total Revolving Credit Commitment (ii) reduce the principal of or rate of
interest on any Loan, Reimbursement Obligation or any fees or other amounts
payable hereunder, (iii) postpone any date fixed for the payment of any
scheduled installment of principal of or interest on any Loan or any fees or
other amounts payable hereunder or for termination of any Revolving Credit
Commitment, or (iv) change the percentage of the Revolving Credit Commitment or
of the unpaid principal amount of the Notes or Reimbursement Obligation, or the
number of Lenders, which shall be required for the Lenders or any of them to
take any action under this SECTION 12.6 or any other provision of this Agreement
or (v) release any guarantor except as expressly contemplated in the Loan
Documents; and PROVIDED, FURTHER, that no such amendment or waiver that affects
the rights, privileges or obligations of Bank of America as provider of Swing
Line Loans, shall be effective unless signed in writing by Bank of America or
that affects the rights, privileges or obligations of the Issuing Bank as issuer
of Letters of Credit, shall be effective unless signed in writing by the Issuing
Bank.

         No notice to or demand on the Borrowers in any case shall entitle the
Borrowers to any other or further notice or demand in similar or other
circumstances, except as otherwise expressly provided herein. No delay or
omission on any Lender's or the Administrative Agent's part in exercising any
right, remedy or option shall operate as a waiver of such or any other right,
remedy or option or of any Default or Event of Default.

         12.7 COUNTERPARTS; FACSIMILE SIGNATURES. This Agreement may be executed
in any number of counterparts, each of which when so executed and delivered
shall be deemed an original, and it shall not be necessary in making proof of
this Agreement to produce or account for more than one such fully-executed
counterpart. Signatures on communications and other documents may be transmitted
by facsimile only with the consent of the Administrative Agent in its sole and
absolute discretion in each instance. The effectiveness of any such signatures
accepted by the Administrative Agent shall, subject to applicable law, have the
same force and effect as manual signatures and shall be binding on all parties.
The Administrative Agent may also require that any such signature be confirmed
by a manually-signed hardcopy thereof. Each party hereto hereby adopts as an
original

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executed signature page each signature page hereafter furnished by such party to
the Administrative Agent (or an agent of the Administrative Agent) bearing (with
the consent of the Administrative Agent) a facsimile signature by or on behalf
of such party. Nothing contained in this Section shall limit the provisions of
SECTION 11.2.

         12.8 TERMINATION. The termination of this Agreement shall not affect
any rights of the Borrowers, the Lenders or the Administrative Agent or any
obligation of the Borrower, the Lenders or the Administrative Agent, arising
prior to the effective date of such termination, and the provisions hereof shall
continue to be fully operative until all transactions entered into or rights
created or obligations incurred prior to such termination have been fully
disposed of, concluded or liquidated and the Obligations arising prior to or
after such termination have been irrevocably paid in full. The rights granted to
the Administrative Agent for the benefit of the Lenders under the Loan Documents
shall continue in full force and effect, notwithstanding the termination of this
Agreement, until all of the Obligations have been paid in full after the
termination hereof (other than Obligations in the nature of continuing
indemnities or expense reimbursement obligations not yet due and payable, which
shall continue) or the Borrowers have furnished the Lenders and the
Administrative Agent with an indemnification satisfactory to the Administrative
Agent and each Lender with respect thereto. Notwithstanding the foregoing, if
after receipt of any payment of all or any part of the Obligations, any Lender
is for any reason compelled to surrender such payment to any Person because such
payment is determined to be void or voidable as a preference, impermissible
setoff, a diversion of trust funds or for any other reason, this Agreement shall
continue in full force and the Parent shall be liable to, and shall indemnify
and hold the Administrative Agent or such Lender harmless for, the amount of
such payment surrendered until the Administrative Agent or such Lender shall
have been finally and irrevocably paid in full. The provisions of the foregoing
sentence shall be and remain effective notwithstanding any contrary action which
may have been taken by the Administrative Agent or the Lenders in reliance upon
such payment, and any such contrary action so taken shall be without prejudice
to the Administrative Agent or the Lenders' rights under this Agreement and
shall be deemed to have been conditioned upon such payment having become final
and irrevocable.

         12.9 INDEMNIFICATION; LIMITATION OF LIABILITY.

                  (a) The Parent agrees to indemnify and hold harmless the
         Administrative Agent and each Lender and each of their affiliates and
         their respective officers, directors, employees, agents, and advisors
         (each, an "Indemnified Party") from and against any and all claims,
         damages, losses, liabilities, costs, and expenses (including, without
         limitation, reasonable attorneys' fees) that may be incurred by or
         asserted or awarded against any Indemnified Party, in each case arising
         out of or in connection with or by reason of (including, without
         limitation, in connection with any investigation, litigation, or
         proceeding or preparation of defense in connection therewith) the Loan
         Documents, any of the transactions contemplated herein or the actual or
         proposed use of the proceeds of the Loans, except to the extent such
         claim, damage, loss, liability, cost, or expense is found in a final,
         non-appealable judgment by a court of competent jurisdiction to have
         resulted from such Indemnified Party's gross negligence or willful
         misconduct. In the case of an investigation,

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<PAGE>   107

         litigation or other proceeding to which the indemnity in this SECTION
         12.9 applies, such indemnity shall be effective whether or not such
         investigation, litigation or proceeding is brought by any Borrower, its
         directors, shareholders or creditors or an Indemnified Party or any
         other Person or any Indemnified Party is otherwise a party thereto and
         whether or not the transactions contemplated hereby are consummated.
         The Parent agrees that no Indemnified Party shall have any liability
         (whether direct or indirect, in contract or tort or otherwise) to it,
         any of its Subsidiaries or any security holders or creditors thereof
         arising out of, related to or in connection with the transactions
         contemplated herein, except to the extent that such liability is found
         in a final non-appealable judgment by a court of competent jurisdiction
         to have directly resulted from such Indemnified Party's gross
         negligence or willful misconduct. Each of the Borrower, the
         Administrative Agent and the Lenders agree not to assert any claim
         against one another or any of their affiliates, or any of their
         respective directors, officers, employees, attorneys, agents, and
         advisers, on any theory of liability, for special, indirect,
         consequential, or punitive damages arising out of or otherwise relating
         to the Loan Documents, any of the transactions contemplated herein or
         the actual or proposed use of the proceeds of the Loans.

                  (b) Without prejudice to the survival of any other agreement
         of the Borrowers hereunder, the agreements and obligations of the
         Borrowers contained in this Section 12.9 shall survive the payment in
         full of the Loans and all other amounts payable under this Agreement.

         12.10 SEVERABILITY. If any provision of this Agreement or the other
Loan Documents shall be determined to be illegal or invalid as to one or more of
the parties hereto, then such provision shall remain in effect with respect to
all parties, if any, as to whom such provision is neither illegal nor invalid,
and in any event all other provisions hereof shall remain effective and binding
on the parties hereto.

         12.11 ENTIRE AGREEMENT. This Agreement, together with the other Loan
Documents, constitutes the entire agreement among the parties with respect to
the subject matter hereof and supersedes all previous proposals, negotiations,
representations, commitments and other communications between or among the
parties, both oral and written, with respect thereto (except that those
provisions (if any) which by the express terms of the commitment letter dated as
of October 29, 1999, executed by Bank of America and BAS and accepted by the
Parent, survive the closing of the Revolving Credit Facility and Letter of
Credit Facility, shall survive and continue in effect).

         12.12 AGREEMENT CONTROLS. In the event that any term of any of the Loan
Documents other than this Agreement conflicts with or differs from any express
term of this Agreement, the terms and provisions of this Agreement shall control
to the extent of such conflict or difference.

         12.13 USURY SAVINGS CLAUSE. Notwithstanding any other provision herein,
the aggregate interest rate charged under any of the Notes, including all
charges or fees in connection therewith deemed in the nature of interest under
applicable law shall not exceed the Highest Lawful Rate (as

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such term is defined below). If the rate of interest (determined without regard
to the preceding sentence) under this Agreement at any time exceeds the Highest
Lawful Rate (as defined below), the outstanding amount of the Loans made
hereunder shall bear interest at the Highest Lawful Rate until the total amount
of interest due hereunder equals the amount of interest which would have been
due hereunder if the stated rates of interest set forth in this Agreement had at
all times been in effect. In addition, if when the Loans made hereunder are
repaid in full the total interest due hereunder (taking into account the
increase provided for above) is less than the total amount of interest which
would have been due hereunder if the stated rates of interest set forth in this
Agreement had at all times been in effect, then to the extent permitted by law,
the Borrowers shall pay to the Administrative Agent an amount equal to the
difference between the amount of interest paid and the amount of interest which
would have been paid if the Highest Lawful Rate had at all times been in effect.
Notwithstanding the foregoing, it is the intention of the Lenders and the
Borrowers to conform strictly to any applicable usury laws. Accordingly, if any
Lender contracts for, charges, or receives any consideration which constitutes
interest in excess of the Highest Lawful Rate, then any such excess shall be
cancelled automatically and, if previously paid, shall at such Lender's option
be applied to the outstanding amount of the Loans made hereunder or be refunded
to the Borrowers. As used in this paragraph, the term "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
such Lender 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.

         12.14 CONFIDENTIALITY. The Administrative Agent and each Lender (each,
a "LENDING PARTY") agrees to keep confidential any information furnished or made
available to it by the Parent or any Borrowing Subsidiary pursuant to this
Agreement and shall not disclose information to any Person in the same or
similar Line of Business as the Parent or its Subsidiaries; PROVIDED that
nothing herein shall prevent any Lending Party from disclosing such information
(a) to any other Lending Party or any affiliate of any Lending Party, or any
officer, director, employee, agent, or advisor of any Lending Party or affiliate
of any Lending Party, (b) to any other Person if reasonably incidental to the
administration of the credit facility provided herein, (c) as required by any
law, rule, or regulation, (d) upon the order of any court or administrative
agency, (e) upon the request or demand of any regulatory agency or authority,
(f) that is or becomes available to the public or that is or becomes available
to any Lending Party other than as a result of a disclosure by any Lending Party
prohibited by this Agreement or through disclosure by any other Person whom the
Administrative Agent or such Lender has reason to believe disclosed such
information in violation of or contrary to the confidentiality requirements or
policies of the Parent or a Subsidiary, (g) in connection with any litigation to
which such Lending Party or any of its affiliates may be a party arising by
reason of or related to this Agreement, (h) to the extent necessary in
connection with the exercise of any remedy under this Agreement or any other
Loan Document, and (i) subject to provisions substantially similar to those
contained in this Section, to any actual or proposed participant or assignee.
The Lenders shall give the Parent notice of any required disclosure of such
information pursuant to clauses (c), (d), (e) or (g) hereof.

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            12.15 GOVERNING LAW; WAIVER OF JURY TRIAL.

                  (a) THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS SHALL
         BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE
         OF NEW YORK APPLICABLE TO CONTRACTS EXECUTED, AND TO BE FULLY
         PERFORMED, IN SUCH STATE.

                  (b) EACH BORROWER HEREBY EXPRESSLY AND IRREVOCABLY AGREES AND
         CONSENTS THAT ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING
         TO THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED HEREIN MAY BE
         INSTITUTED IN ANY STATE OR FEDERAL COURT SITTING IN THE BOROUGH OF
         MANHATTAN, STATE OF NEW YORK, UNITED STATES OF AMERICA OR THE COUNTY OF
         PALM BEACH, STATE OF FLORIDA, UNITED STATES OF AMERICA AND, BY THE
         EXECUTION AND DELIVERY OF THIS AGREEMENT, THE BORROWER EXPRESSLY WAIVES
         ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE
         IN, OR TO THE EXERCISE OF JURISDICTION OVER IT AND ITS PROPERTY BY, ANY
         SUCH COURT IN ANY SUCH SUIT, ACTION OR PROCEEDING, AND EACH BORROWER
         HEREBY IRREVOCABLY SUBMITS GENERALLY AND UNCONDITIONALLY TO THE
         JURISDICTION OF ANY SUCH COURT IN ANY SUCH SUIT, ACTION OR PROCEEDING.

                  (c) EACH BORROWER AGREES THAT SERVICE OF PROCESS MAY BE MADE
         BY PERSONAL SERVICE OF A COPY OF THE SUMMONS AND COMPLAINT OR OTHER
         LEGAL PROCESS IN ANY SUCH SUIT, ACTION OR PROCEEDING, OR BY REGISTERED
         OR CERTIFIED MAIL (POSTAGE PREPAID) TO THE ADDRESS OF THE BORROWERS
         PROVIDED IN SECTION 12.2, OR BY ANY OTHER METHOD OF SERVICE PROVIDED
         FOR UNDER THE APPLICABLE LAWS IN EFFECT IN THE STATE OF FLORIDA.

                  (d) NOTHING CONTAINED IN SUBSECTIONS (b) OR (c) HEREOF SHALL
         PRECLUDE THE ADMINISTRATIVE AGENT OR ANY LENDER FROM BRINGING ANY SUIT,
         ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO ANY LOAN DOCUMENT IN
         THE COURTS OF ANY JURISDICTION WHERE THE BORROWERS OR ANY OF THE
         BORROWERS' PROPERTY OR ASSETS MAY BE FOUND OR LOCATED.

                  (e) IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY
         RIGHTS OR REMEDIES UNDER OR RELATED TO ANY LOAN DOCUMENT OR ANY
         AMENDMENT, INSTRUMENT, DOCUMENT OR AGREEMENT DELIVERED OR THAT MAY IN
         THE FUTURE BE DELIVERED IN CONNECTION THEREWITH, THE BORROWERS, THE
         ADMINISTRATIVE AGENT AND THE LENDERS HEREBY AGREE, TO THE EXTENT
         PERMITTED BY APPLICABLE LAW, THAT ANY SUCH ACTION, SUIT OR PROCEEDING
         SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY AND

                                       103

<PAGE>   110

         HEREBY IRREVOCABLY WAIVE, TO THE EXTENT PERMITTED BY APPLICABLE LAW,
         ANY RIGHT SUCH PERSON MAY HAVE TO TRIAL BY JURY IN ANY SUCH ACTION,
         SUIT OR PROCEEDING.

                  (f) EACH BORROWER HEREBY EXPRESSLY WAIVES ANY OBJECTION IT MAY
         HAVE THAT ANY COURT TO WHOSE JURISDICTION IT HAS SUBMITTED PURSUANT TO
         THE TERMS HEREOF IS AN INCONVENIENT FORUM.

                         [Signatures on following pages]

                                       104

<PAGE>   111

         IN WITNESS WHEREOF, the parties hereto have caused this instrument to
be made, executed and delivered by their duly authorized officers as of the day
and year first above written.

                                      SENSORMATIC ELECTRONICS CORPORATION

WITNESS:

/s/ R. Malloy McKeithen               By: /s/ Thomas F. Donahue
-------------------------------           -------------------------------------
                                      Name:  Thomas F. Donahue
/s/ Terry L. Witcher                  Title: Vice President and Treasurer
-------------------------------

                              Signature Page 1 of 6

<PAGE>   112

                             BANK OF AMERICA, N.A.,
                             as Administrative Agent for the Lenders

                             By: /s/ Richard M. Starke
                                ----------------------------------------
                             Name: Richard M. Starke
                             Title: Managing Director

                             BANK OF AMERICA, N.A.

                             By: /s/ Richard M. Starke
                                ----------------------------------------
                             Name:  Richard M. Starke
                             Title: Managing Director

                             Lending Office for Base Rate Loans:
                                 Bank of America, N.A.
                                 101 North Tryon Street, 15th Floor
                                 NC1-001-15-04
                                 Charlotte, North Carolina  28255
                                 Attention: Agency Services
                                 Telephone:(704) 388-3919
                                 Telefacsimile:(704) 386-9923

                             Wire Transfer Instructions:
                                 Bank of America, N.A.
                                 ABA#  053000196
                                 Account No.:_____________________________
                                 Reference: Sensormatic Electronics Corporation
                                 Attention: Agency Services

                             Lending Office for Eurodollar Rate Loans:
                                 Bank of America, N.A.
                                 101 North Tryon Street, 15th Floor
                                 NC1-001-15-04
                                 Charlotte, North Carolina  28255
                                 Attention: Agency Services
                                 Telephone:(704) 388-3919
                                 Telefacsimile:(704) 386-9923

                           Wire Transfer Instructions:
                                 Bank of America, N.A.
                                 ABA# 053000196
                                 Account No.:______________________________
                                 Reference: Sensormatic Electronics Corporation
                                 Attention: Agency Services

                              Signature Page 2 of 6

<PAGE>   113

                            SUNTRUST BANK, SOUTH FLORIDA, N.A.

                            By: /s/ W. David Wisdom
                               ---------------------------------
                            Name: W. David Wisdom
                            Title: Vice President

                            Lending Office:
                            501 E. Las Olas Boulevard
                            Fort Lauderdale, Florida 33301

                            Wire Transfer Instructions:
                            SunTrust Bank, South Florida, N.A.
                            Fort Lauderdale, Florida
                            ABA #067-006-076
                            Account #9607004110
                            Corporate Banking
                            Attention: Jennifer Campbell
                            Reference: Sensormatic Electronics Corporation

                              Signature Page 3 of 6

<PAGE>   114

                              BANK ONE, NA
                              (CHICAGO MAIN OFFICE)

                              By: /s/ Jennifer Schmoll
                                 -------------------------------------
                              Name:  Jennifer Schmoll
                              Title: Customer Service Officer

                              Lending Office:
                              1 Bank One Plaza
                              Suite 0324
                              Chicago, Illinois 60670

                              Wire Transfer Instructions:
                              Bank One, NA
                              Chicago, Illinois
                              ABA #071000013
                              Account #4811-5286 00000
                                 Loan Processing Dept.
                              Attention: Mattie Reed
                              Reference: Sensormatic Electronics Corporation

                              Signature Page 4 of 6

<PAGE>   115

                                BANKBOSTON, N.A.

                                By: /s/ Lynn R. Schade
                                   -----------------------------------
                                Name: Lynn R. Schade
                                Title: Vice President

                                Lending Office:
                                100 Federal Street
                                Boston, Massachusetts 02110

                                Wire Transfer Instructions:
                                BankBoston
                                Boston, Massachusetts
                                ABA #011000390
                                Account #540-99647
                                Account Name: High Technology and
                                   Environmental Services
                                   Adm 50, 60
                                Attention: Anthony Dunn
                                Reference: Sensormatic Electronics Corporation

                              Signature Page 5 of 6

<PAGE>   116

                                DRESDNER BANK LATEINAMERIKA AG,
                                MIAMI AGENCY

                                By: /s/ Alan Hills            s/s Frank Huthnane
                                    --------------------------------------------
                                Name: Alan Hills                 Frank Huthnane
                                Title: Vice President            Vice President

                                Lending Office:
                                801 Brickell Avenue
                                Suite 1100
                                Miami, Florida 33131

                                Wire Transfer Instructions:
                                Dresdner Bank Lateinamerika AG
                                Miami, Florida
                                ABA #0660-1085-6
                                Attention: Credit Services Department
                                Reference: Sensormatic Electronics Corporation

                              Signature Page 6 of 6

<PAGE>   117

                                    EXHIBIT A

                        Applicable Commitment Percentages

<TABLE>
<CAPTION>
                                                        Revolving                            Applicable
                                                          Credit                             Commitment
Lender                                                  Commitment                           Percentage
------                                                  ----------                           ----------
<S>                                                  <C>                                <C>
Bank of America, N.A                                 $  30,000,000.00                   26.086956521739100%

SunTrust Bank, South Florida, N.A.                      25,000,000.00                   21.739130434782600%

Bank One, NA
(Chicago Main Office)                                   25,000,000.00                   21.739130434782600%

BankBoston, N.A.                                        20,000,000.00                   17.391304347826100%

Dresdner Bank Lateinamerika AG,
Miami Agency                                            15,000,000.00                   13.043478260869600%
                                                      ---------------                   -------------------
                                                      $115,000,000.00                   100%

</TABLE>

                                       A-1

<PAGE>   118

                                    EXHIBIT B

                        Form of Assignment and Acceptance

         Reference is made to the Credit Agreement dated as of December 9, 1999
(the "Credit Agreement") among Sensormatic Electronics Corporation, a Delaware
corporation, and the Borrowing Subsidiaries parties thereto (collectively, the
"Borrowers"), the Lenders (as defined in the Credit Agreement) and Bank of
America, N.A., as agent for the Lenders (the "Administrative Agent"). Terms
defined in the Credit Agreement are used herein with the same meaning.

         The "Assignor" and the "Assignee" referred to on SCHEDULE 1 agree as
follows:

         1. The Assignor hereby sells and assigns to the Assignee, WITHOUT
RECOURSE and without representation or warranty except as expressly set forth
herein, and the Assignee hereby purchases and assumes from the Assignor, an
interest in and to the Assignor's rights and obligations under the Credit
Agreement and the other Loan Documents as of the date hereof equal to the
percentage interest specified on SCHEDULE 1 of all outstanding rights and
obligations under the Credit Agreement and the other Loan Documents.* After
giving effect to such sale and assignment, the Assignee's Revolving Credit
Commitment and the amount of the Loans owing to the Assignee will be as set
forth on SCHEDULE 1.

         2. The Assignor (i) 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 any adverse claim; (ii) makes no representation or
warranty and assumes no responsibility with respect to any statements,
warranties or representations made in or in connection with the Loan Documents
or the execution, legality, validity, enforceability, genuineness, sufficiency
or value of the Loan Documents or any other instrument or document furnished
pursuant thereto; (iii) makes no representation or warranty and assumes no
responsibility with respect to the financial condition of any Borrower or the
performance or observance by any Borrower of any of its obligations under the
Loan Documents or any other instrument or document furnished pursuant thereto;
and (iv) attaches the Notes held by the Assignor and requests that the
Administrative Agent exchange such Notes for new Notes payable to the order of
the Assignee in an amount equal to the Revolving Credit Commitment assumed by
the Assignee pursuant hereto and to the Assignor in an amount equal to the
Revolving Credit Commitment retained by the Assignor, if any, as specified on
SCHEDULE 1.

         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 8.1 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 Lender and
based on such documents and information as it shall deem appropriate at the
time, continue to make its own credit

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

         * In the case of Bank of America as Assignor, excluding any rights,
benefits or duties as provider of Swing Line Loans or as Issuing Bank.

                                       B-1

<PAGE>   119

decisions in taking or not taking action under the Credit Agreement; (iii)
confirms that it is an Eligible Assignee; (iv) appoints and authorizes the
Administrative Agent to take such action as agent on its behalf and to exercise
such powers and discretion under the Credit Agreement as are delegated to the
Administrative Agent by the terms thereof, together with such powers and
discretion as are reasonably incidental thereto; (v) agrees that it will perform
in accordance with their terms all of the obligations that by the terms of the
Credit Agreement are required to be performed by it as a Lender; and (vi)
attaches any U.S. Internal Revenue Service or other forms required under SECTION
6.6.

         4. Following the execution of this Assignment and Acceptance, it will
be delivered to the Administrative Agent for acceptance and recording by the
Administrative Agent. The effective date for this Assignment and Acceptance (the
"Effective Date") shall be the date of acceptance hereof by the Administrative
Agent, unless otherwise specified on SCHEDULE 1.

         5. Upon such acceptance and recording by the Administrative Agent, as
of the Effective Date, (i) the Assignee shall be a party to the Credit Agreement
and, to the extent provided in this Assignment and Acceptance, have the rights
and obligations of a Lender thereunder and (ii) the Assignor shall, to the
extent provided in this Assignment and Acceptance, relinquish its rights and be
released from its obligations under the Credit Agreement.

         6. Upon such acceptance and recording by the Administrative Agent, 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, without limitation, all payments of principal, interest and
commitment fees with respect thereto) to the Assignee. The Assignor and Assignee
shall make all appropriate adjustments in payments 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
in accordance with, the laws of the State of New York.

         8. This Assignment and Acceptance may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of
which when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement. Delivery of an executed
counterpart of SCHEDULE 1 to this Assignment and Acceptance by telefacsimile
shall be effective as delivery of a manually executed counterpart of this
Assignment and Acceptance.

         IN WITNESS WHEREOF, the Assignor and the Assignee have caused SCHEDULE
1 to this Assignment and Acceptance to be executed by their officers thereunto
duly authorized as of the date specified thereon.

                                       B-2

<PAGE>   120

                                   Schedule 1

                                                                Revolving Credit
                                                                    Facility
                                                                ----------------
Percentage interest assigned:                                        _____%

Assignee's Commitment:                                           $
                                                                 ---------------

Aggregate outstanding principal amount of Loans                  $
assigned:                                                        ---------------

Principal amount of Note payable to Assignee:                    $
                                                                 ---------------

Principal amount of Note payable to Assignor:                    $
                                                                 ---------------

Effective Date (if other than date of acceptance by              *
Administrative Agent):                                           ---------,-----

                                      [NAME OF ASSIGNOR], as Assignor

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

                                      Dated: __________, ____

                                      [NAME OF ASSIGNEE], as Assignee

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

                                      Domestic Lending Office:

                                      Eurodollar Lending Office:

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

         * This date should be no earlier than five Business Days after the
delivery of this Assignment and Acceptance to the Administrative Agent.

                                       B-3

<PAGE>   121

Accepted [and Approved] **
this ___ day of ___________, ____

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

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

[Approved this ____ day
of ____________, ____

SENSORMATIC ELECTRONICS CORPORATION

By:                                   ]**
   -----------------------------------
Title:

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

         ** Required if the Assignee is an Eligible Assignee solely by reason of
clause (iii) of the definition of "Eligible Assignee."

                                       B-4

<PAGE>   122

                                    EXHIBIT C

       Notice of Appointment (or Revocation) of Authorized Representative

         Reference is hereby made to the Credit Agreement dated as of December
9, 1999 (the "Agreement") among Sensormatic Electronics Corporation, a Delaware
corporation (the "Parent"), and the Borrowing Subsidiaries, if any,
(collectively, with the Parent, the "Borrowers"), the Lenders (as defined in the
Agreement), and Bank of America, N.A., as Administrative Agent for the Lenders
("Administrative Agent"). Capitalized terms used but not defined herein shall
have the respective meanings therefor set forth in the Agreement.

         The Parent hereby nominate, constitute and appoint each individual
named below as an Authorized Representative under the Loan Documents, and hereby
represents and warrants that (i) set forth opposite each such individual's name
is a true and correct statement of such individual's office (to which such
individual has been duly elected or appointed), a genuine specimen signature of
such individual and an address for the giving of notice, and (ii) each such
individual has been duly authorized by the Borrowers to act as Authorized
Representative under the Loan Documents:

<TABLE>
<CAPTION>
          Name and Address                               Office                               Specimen Signature
------------------------------------       -----------------------------------        ----------------------------------
<S>                                           <C>                                         <C>

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

  --------------------------------            ----------------------------                ---------------------------
  --------------------------------            ----------------------------                ---------------------------
  --------------------------------
</TABLE>

         Parent hereby revokes (effective upon receipt hereof by the
Administrative Agent) the prior appointment of ________________ as an Authorized
Representative.

         This the ___ day of __________________, ____.

                                    SENSORMATIC ELECTRONICS CORPORATION

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

                                       C-1

<PAGE>   123

                                   EXHIBIT D-1

                            Form of Borrowing Notice

To:      Bank of America, N.A.,
         as Administrative Agent
         101 North Tryon Street, 15th Floor
         NC1-001-15-04
         Charlotte, North Carolina  28255
         Attention: Agency Services
         Telefacsimile:  (704)386-9923

         Reference is hereby made to the Credit Agreement dated as of December
9, 1999 (the "Agreement") among Sensormatic Electronics Corporation (the
"Parent"), the Borrowing Subsidiaries (together with the Parent the "Borrowers"
and individually a "Borrower"), the Lenders (as defined in the Agreement), and
Bank of America, N.A., as Administrative Agent for the Lenders ("Administrative
Agent"). Capitalized terms used but not defined herein shall have the respective
meanings therefor set forth in the Agreement.

         The undersigned Borrower through its Authorized Representative hereby
gives notice to the Administrative Agent that Loans of the type and amount set
forth below be made on the date indicated:

<TABLE>
<CAPTION>
         Type of Loan
         (check one)                   Interest Period(1)               Aggregate Amount(2)              Date of Loan(3)
------------------------------      ------------------------       -----------------------------       --------------------
<S>                                     <C>                            <C>                                <C>
Revolving Loan
------------------------------

Base Rate Loan
                                        ------------------             -----------------------            -----------------
Eurodollar Rate Loan
                                        ------------------             -----------------------            -----------------
Alternative
                                        ------------------             -----------------------            -----------------
Currency _______(4)
</TABLE>

-----------------------
(1) For any Eurodollar Rate Loan, one, two, three or six months.

(2) Must be $_________ or if greater an integral multiple of $_______, unless a
    Base Rate Refunding Loan.
(3) At least three (3) Business Days later if a Eurodollar Rate Loan and four
    (4) Business Days later if an Alternative Currency Loan.
(4) Insert either British Pounds or euro unless Lenders have agreed otherwise.

         The Borrower hereby requests that the proceeds of Loans described in
this Borrowing Notice be made available to the Borrower as follows: [INSERT
TRANSMITTAL INSTRUCTIONS].

         The undersigned hereby certifies that:

                                      D-1-1

<PAGE>   124

         1. No Default or Event of Default exists either now or after giving
effect to the borrowing described herein; and

         2. All the representations and warranties set forth in ARTICLE VII of
the Agreement and in the Loan Documents (other than those expressly stated to
refer to a particular date) are true and correct in all material respects as of
the date hereof except that the reference to the financial statements in SECTION
7.6(a) of the Agreement shall be deemed (solely for the purpose of the
representation and warranty contained in such SECTION 7.6(a) but not for the
purpose of any cross reference to such SECTION 7.6(a) or to the financial
statements described therein contained in any other provision of SECTION 7.6 or
elsewhere in ARTICLE VII) to refer to those financial statements most recently
delivered to you pursuant to SECTION 8.1 of the Agreement (it being understood
that any financial statements delivered pursuant to SECTION 8.1(b) have not been
certified by independent public accountants).

         3. All conditions contained in the Agreement to the making of any Loan
requested hereby have been met or satisfied in full.

                            -------------------------------------------
                            [Insert Name of Borrower]

                            BY:
                               ----------------------------------------
                                      Authorized Representative

                            DATE:
                                 --------------------------------------

                                      D-1-2

<PAGE>   125

                                   EXHIBIT D-2

                   Form of Borrowing Notice--Swing Line Loans

To:      Bank of America, N.A.,
         101 North Tryon Street, 15th Floor
         NC1-001-15-04
         Charlotte, North Carolina  28255
         Attention: Agency Services
         Telefacsimile:  (704)386-9923

         Reference is hereby made to the Credit Agreement dated as of December
9, 1999 (the "Agreement") among Sensormatic Electronics Corporation (the
"Parent"), the Borrowing Subsidiaries (together with the Parent the "Borrowers"
and individually, a "Borrower"), the Lenders (as defined in the Agreement), and
Bank of America, N.A., as Administrative Agent for the Lenders ("Administrative
Agent"). Capitalized terms used but not defined herein shall have the respective
meanings therefor set forth in the Agreement.

         The Borrower through its Authorized Representative hereby gives notice
to Bank of America that a Swing Line Loan of the amount set forth below be made
on the date indicated:

            Amount(1)                                     Date of Loan
---------------------------------              ---------------------------------
           $----------                                  ----------, ----

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

         (1)      Must be $250,000 or if greater an integral multiple of
                  $50,000, unless a Base Rate Refunding Loan.

         The Borrower hereby requests that the proceeds of Swing Line Loans
described in this Borrowing Notice be made available to the Borrower as follows:
[INSERT TRANSMITTAL INSTRUCTIONS]

         The undersigned hereby certifies that:

         1. No Default or Event of Default exists either now or after giving
effect to the borrowing described herein; and

         2. All the representations and warranties set forth in ARTICLE VII of
the Agreement and in the Loan Documents (other than those expressly stated to
refer to a particular date) are true and correct in all material respects as of
the date hereof except that the reference to the financial statements in SECTION
7.6(a) of the Agreement shall be deemed (solely for the purpose of the
representation and warranty contained in such SECTION 7.6(a) but not for the
purpose of any cross reference to such SECTION 7.6(a) or to the financial
statements described therein contained in any other provision of SECTION 7.6 or
elsewhere in ARTICLE VII) to refer to those financial statements most

                                      D-2-1

<PAGE>   126

recently delivered to you pursuant to SECTION 8.1 of the Agreement (it being
understood that any financial statements delivered pursuant to SECTION 8.1(b)
have not been certified by independent public accountants).

         3. All conditions contained in the Agreement to the making of any Loan
requested hereby have been met or satisfied in full.

                            --------------------------------------------
                            [Insert Name of Borrower]

                            BY:
                              ------------------------------------------
                            Authorized Representative

                            DATE:
                                 ---------------------------------------

                                      D-2-2

<PAGE>   127

                                    EXHIBIT E

                     Form of Interest Rate Selection Notice

To:      Bank of America, N.A., as Administrative Agent
         101 North Tryon Street, 15th Floor
         NC1-001-15-04
         Charlotte, North Carolina  28255
         Attention:  Agency Services
         Telefacsimile:  (704) 386-9923

         Reference is hereby made to the Credit Agreement dated as of December
9, 1999 (the "Agreement") among Sensormatic Electronics Corporation (the
"Parent), the Borrowing Subsidiaries (together with the Parent the "Borrowers"
and individually, a "Borrower"), the Lenders (as defined in the Agreement), and
Bank of America, N.A., as Administrative Agent for the Lenders ("Administrative
Agent"). Capitalized terms used but not defined herein shall have the respective
meanings therefor set forth in the Agreement.

         The Borrower through its Authorized Representative hereby gives notice
to the Administrative Agent of the following selection of a type of Loan and
Interest Period:

<TABLE>
<CAPTION>
          Type of Loan
           (check one)                    Interest Period(1)             Aggregate Amount(2)             Date of Loan(3)
---------------------------------       -----------------------      ---------------------------       --------------------
<S>                                     <C>                            <C>                                <C>
Revolving Loan
------------------------------

Base Rate Loan
                                        ------------------             -----------------------            -----------------
Eurodollar Rate Loan
                                        ------------------             -----------------------            -----------------
Alternative
                                        ------------------             -----------------------            -----------------
Currency _______(4)

</TABLE>

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

(1) For any Eurodollar Rate Loan [or Segment], one, two, three or six months.
(2) Must be $_________ or if greater an integral multiple of $_______, unless a
    Base Rate Refunding Loan.
(3) At least three (3) Business Days later if a Eurodollar Rate Loan and four
    (4) Business Days later if an Alternative Currency Loan.
(4) Insert either British Pounds or euro unless Lenders have agreed otherwise.

                                -------------------------------------------
                                [Insert Name of Borrower]

                                BY:
                                   ----------------------------------------
                                       Authorized Representative
                                DATE:
                                     --------------------------------------

                                       E-1

<PAGE>   128

                                   EXHIBIT F-1

                          FORM OF COMPETITIVE BID NOTE

                                 Promissory Note

$------------                                             ----------, ----------

                                                                __________, 1999

         FOR VALUE RECEIVED, SENSORMATIC ELECTRONICS CORPORATION, a
Delaware corporation having its principal place of business located in Boca
Raton, Florida (the "Borrower") hereby promises to pay as provided in the Credit
Agreement (as defined below), to the order of

         ___________________________________ ** (the "Lender"), in its
individual capacity, at the office of Bank of America, N.A., as administrative
agent for the Lender (the "Administrative Agent"), located at 101 North Tryon
Street, 15th Floor, NC1-001-15-04, Charlotte, North Carolina 28255 (or at such
other place or places as the Administrative Agent may designate) at the times
set forth in the Credit Agreement dated as of December 9, 1999 among the
Borrower, the financial institutions party thereto (collectively, the "Lenders")
and the Administrative Agent (as amended, supplemented or otherwise modified and
in effect from time to time, the "Credit Agreement"; all capitalized terms not
otherwise defined herein shall have the respective meanings set forth in the
Credit Agreement), in lawful money of the United States of America and in
immediately available funds, the aggregate unpaid principal amount of all
Competitive Bid Loans made by the Lender to the Borrower, on the dates and in
the principal amounts set forth in the Lender's Competitive Bid Quote and
accepted by the Borrower, and to pay interest on the unpaid principal amount of
each such Competitive Bid Loan, at such office, in like money and funds, for the
period commencing on the date of such Competitive Bid Loan until such
Competitive Bid Loan shall be paid in full, at the rates per annum and on the
dates set forth in the Lender's Competitive Bid Quote and accepted by either
Borrower.

         The date, amount, type of loan, interest rate and maturity date of each
Competitive Bid Loan made by the Lender to the Borrower, and each payment made
on account of the principal thereof, shall be recorded by the Lender on its
books and, prior to any transfer of this Note, endorsed by the Lender on the
schedule attached hereto or any continuation thereof, PROVIDED that the failure
of the Lender to make any such recordation or endorsement shall not affect the
obligations of the Borrower to make a payment when due of any amount owing under
the Credit Agreement or hereunder in respect of the Competitive Bid Loans made
by the Lender.

-----------------
**       Insert name of Lender

                                      F-1-1

<PAGE>   129

         This Note is one of the Competitive Bid Notes referred to in the Credit
Agreement and is issued pursuant to and entitled to the benefits and security of
the Credit Agreement to which reference is hereby made for a more complete
statement of the terms and conditions upon which the Competitive Bid Loans
evidenced hereby were made or are made and are to be repaid. This Note is
subject to certain restrictions on transfer or assignment as provided in the
Agreement.

         If payment of all sums due hereunder is accelerated under the terms of
the Credit Agreement or under the terms of the other Loan Documents executed in
connection with the Credit Agreement, the then remaining principal amount and
accrued but unpaid interest shall bear interest which shall be payable on demand
at the rates per annum set forth in ARTICLE II of the Credit Agreement, or the
maximum rate permitted under applicable law, if lower, until such principal and
interest have been paid in full. Further, in the event of such acceleration,
this Note, and all other indebtedness of the Borrower to the Lender under the
Loan Documents shall become immediately due and payable, without presentation,
demand, protest or notice of any kind, all of which are hereby waived by the
Borrowers. Upon acceleration interest shall be payable at the Absolute Rate or
the Eurodollar Competitive Rate, as the case may be, plus two percent (2%) per
annum.

         In the event this Note is not paid when due at any stated or
accelerated maturity, the Borrowers agree to pay, in addition to the principal
and interest, all costs of collection, including reasonable attorneys' fees, and
interest thereon at the rates set forth above.

         Interest hereunder shall be computed as provided in the Credit
Agreement.

         This Note shall be governed by, and construed in accordance with, the
laws of the State of Florida.

                  [Remainder of page intentionally left blank.]

                                      F-1-2

<PAGE>   130

         IN WITNESS WHEREOF, the Borrower has caused this Note to be made,
executed and delivered by its duly authorized representative as of the date and
year first above written, all pursuant to authority duly granted.

                                          SENSORMATIC ELECTRONICS CORPORATION

WITNESS:

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

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

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

                                      F-1-3

<PAGE>   131

                        SCHEDULE OF COMPETITIVE BID LOANS

         This Note evidences Competitive Bid Loans made under the
within-described Credit Agreement to the Borrower, on the dates, in the
principal amounts, of the types, bearing interest at the rates and maturing on
the dates set forth below, subject to the payments and prepayments of principal
set forth below:

<TABLE>
<CAPTION>
                                     Type of
                                      Loan
                                    (Absolute
                 Principal           Rate or
    Date          Amount           Eurodollar                         Maturity         Amount            Unpaid
     of             of             Competitive        Interest         Date of        Paid or          Principal          Notation
    Loan           Loan               Rate)             Rate            Loan          Prepaid            Amount           Made by
    ----           ----               -----             ----            ----          -------            ------           -------
<S>              <C>               <C>                <C>             <C>             <C>              <C>                <C>

</TABLE>

                                      F-1-4

<PAGE>   132

                                   EXHIBIT F-2

                             Form of Revolving Note

                                 Promissory Note
                                (Revolving Loan)

                                                          ----------, ----------

                                                                ----------, ----

         FOR VALUE RECEIVED, SENSORMATIC ELECTRONICS CORPORATION, a

Delaware corporation having its principal place of business located in Boca
Raton, Florida (the "Borrower"), hereby promises to pay to the order of

         _______________________________________________ (the "Lender"), in its
individual capacity, at the office of BANK OF AMERICA, N.A., as agent for the
Lenders (the "Administrative Agent"), located at 101 North Tryon Street,
NC1-001-15-04, Charlotte, North Carolina 28255 (or at such other place or places
as the Administrative Agent may designate in writing) at the times set forth in
the Credit Agreement dated as of December 9, 1999 among the Borrower, the
financial institutions party thereto (collectively, the "Lenders") and the
Administrative Agent (the "Agreement" -- all capitalized terms not otherwise
defined herein shall have the respective meanings set forth in the Agreement) in
immediately available funds, the aggregate unpaid principal amount of all
Revolving Loans made by the Lender to the Borrower pursuant to the Agreement on
the Revolving Credit Termination Date or such earlier date as may be required
pursuant to the terms of the Agreement, and to pay interest from the date hereof
on the unpaid principal amount hereof, in like money, at said office, on the
dates and at the rates provided in ARTICLES II AND IV of the Agreement. All or
any portion of the principal amount of Loans may be prepaid or required to be
prepaid as provided in the Agreement.

         If payment of all sums due hereunder is accelerated under the terms of
the Agreement or under the terms of the other Loan Documents executed in
connection with the Agreement, the then remaining principal amount and accrued
but unpaid interest thereon evidenced by this Revolving Note shall become
immediately due and payable, without presentation, demand, protest or notice of
any kind, all of which are hereby waived by the Borrower.

         In the event this Revolving Note is not paid when due at any stated or
accelerated maturity, the Borrower agrees to pay, in addition to the principal
and interest, all costs of collection, including reasonable attorneys' fees, and
interest due hereunder thereon at the rates set forth above.

         Interest hereunder shall be computed as provided in the Agreement.

                                      F-2-1

<PAGE>   133

         This Revolving Note is one of the Revolving Notes referred to in the
Agreement and is issued pursuant to and entitled to the benefits and security of
the Agreement to which reference is hereby made for a more complete statement of
the terms and conditions upon which the Revolving Loans evidenced hereby were or
are made and are to be repaid. This Revolving Note is subject to certain
restrictions on transfer or assignment as provided in the Agreement.

          Protest, notice of protest, notice of dishonor, diligence or any other
formality are hereby waived by all parties bound hereon.

                            [SIGNATURE PAGE FOLLOWS.]

                                      F-2-2

<PAGE>   134

         IN WITNESS WHEREOF, the Borrower has caused this Revolving Note to be
made, executed and delivered by its duly authorized representative as of the
date and year first above written, all pursuant to authority duly granted.

                                          SENSORMATIC ELECTRONICS CORPORATION

WITNESS:

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

                                      F-2-3

<PAGE>   135

                                   EXHIBIT F-3

                             Form of Swing Line Note

                                 Promissory Note
                                (Swing Line Loan)

$
----------------                                          ----------, ----------

                                                                ----------, ----

         FOR VALUE RECEIVED, SENSORMATIC ELECTRONICS CORPORATION, a Delaware
corporation having its principal place of business located in Boca Raton,
Florida (the "Borrower"), hereby promises to pay to the order of

         BANK OF AMERICA, N.A. ("Bank of America"), in its individual capacity,
at Bank of America's offices located at 101 North Tryon Street, NC1-001-15-04,
Charlotte, North Carolina 28255 (or at such other place or places as Bank of
America may designate) at the times set forth in the Credit Agreement dated as
of December 9, 1999 among the Borrower, the financial institutions party thereto
(collectively, the "Lenders") and Bank of America, N.A., as agent for the
Lenders (the "Administrative Agent") (as amended, supplemented or otherwise
modified from time to time, the "Agreement" -- all capitalized terms not
otherwise defined herein shall have the respective meanings set forth in the
Agreement), in lawful money of the United States of America, in immediately
available funds, the principal amount of

         ______________________________________ DOLLARS ($____________) or if
less than such principal amount, the aggregate unpaid principal amount of all
Swing Line Loans made by Bank of America to the Borrower pursuant to the
Agreement on the Revolving Credit Termination Date or such earlier date as may
be required pursuant to the terms of the Agreement, and to pay interest from the
date hereof on the unpaid principal amount hereof, in like money, at said
office, on the dates and at the rates provided in ARTICLES II AND IV of the
Agreement. All or any portion of the principal amount of Swing Line Loans may be
prepaid as provided in the Agreement.

         If payment of all sums due hereunder is accelerated under the terms of
the Agreement or under the terms of the other Loan Documents executed in
connection with the Agreement, the then remaining principal amount and accrued
but unpaid interest shall bear interest which shall be payable on demand at the
Default Rate until such principal and interest have been paid in full. Further,
in the event of such acceleration, this Note, and all other indebtedness of the
Borrower to the Lender shall become immediately due and payable, without
presentation, demand, protest or notice of any kind, all of which are hereby
waived by the Borrower.

                                      F-3-1

<PAGE>   136

         In the event this Note is not paid when due at any stated or
accelerated maturity, the Borrower agrees to pay, in addition to the principal
and interest, all costs of collection, including reasonable attorneys' fees, and
interest thereon at the rates set forth above.

         Interest hereunder shall be computed on the basis of a 360 day year for
the actual number of days in the interest period.

         This Note is the Swing Line Note referred to in the Agreement and is
issued pursuant to and entitled to the benefits and security of the Agreement to
which reference is hereby made for a more complete statement of the terms and
conditions upon which the Swing Line Loans evidenced hereby were or are made and
are to be repaid. This Note is subject to certain restrictions on transfer or
assignment as provided in the Agreement.

         This Note shall be governed by and construed in accordance with the
laws of the State of Florida.

         Protest, notice of protest, notice of dishonor, diligence or any other
formality are hereby waived by all parties bound hereon.

                            [SIGNATURE PAGE FOLLOWS.]

                                      F-3-2

<PAGE>   137

         IN WITNESS WHEREOF, the Borrower has caused this Note to be made,
executed and delivered by its duly authorized representative as of the date and
year first above written, all pursuant to authority duly granted.

                                             SENSORMATIC ELECTRONICS CORPORATION

WITNESS:

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

                                      F-3-3

<PAGE>   138

                                    EXHIBIT G

                      FORM OF COMPETITIVE BID QUOTE REQUEST

                                     [Date]

To:               Bank of America, N.A.
                  as Administrative Agent

Attention:

Re:               Competitive Bid Quote Request

         Pursuant to SECTION 2.2 of the Credit Agreement dated as of December 9,
1999 (as amended, supplemented or otherwise modified and in effect from time to
time, the "Credit Agreement") among Sensormatic Electronics Corporation, the
lenders named therein and Bank of America, N.A., as Administrative Agent, we
hereby give notice that we request Competitive Bid Quotes, [with][without] the
right of prepayment, for the following proposed Competitive Bid Borrowing(s):

<TABLE>
<CAPTION>
Borrowing                 Type of                                       Quotation               Interest
 Date(1)                   Loan(2)                Date                  Amount(3)               Period(4)
---------                 -------               ---------               ---------               --------
<S>                       <C>                   <C>                     <C>                     <C>
</TABLE>

         Terms used herein have the meanings assigned to them in the Credit
Agreement.

                                           SENSORMATIC ELECTRONICS CORPORATION

                                           By:
                                              ---------------------------------
                                                    Authorized Representative

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

        (1) At least four (4) Business Days later if at the Eurodollar
            Competitive Rate.
        (2) Competitive Bid Loan at
                  (a) Absolute Rate; or
                  (b) Eurodollar Competitive Rate
        (3) Each amount must be $2,500,000 or a multiple of $500,000 in excess
            thereof.
        (4) A period of up to 180 days after the making of such Competitive Bid
            Loan and ending on a Business Day for Competitive Bid Loans at the
            Absolute Rate. For any Competitive Bid Loan at the Eurodollar
            Competitive Rate, one week or one, two, three or six months, with
            the possibility of not more than one (1) one week Interest Period.

                                       G-1

<PAGE>   139

                                    EXHIBIT H

                          FORM OF COMPETITIVE BID QUOTE

To:               [Sensormatic Electronics Corporation] ("Borrower") [or Bank
                  of America, N.A., as Administrative Agent]

Attention:

Re:               Competitive Bid Quote

         The Competitive Bid Quote is given in accordance with SECTION 2.2 of
the Credit Agreement dated as of December 9, 1999 (as amended, supplemented or
otherwise modified and in effect from time to time, the "Credit Agreement")
among Sensormatic Electronics Corporation, the lenders named therein and Bank of
America, N.A., as Administrative Agent. Terms defined in the Credit Agreement
are used herein as defined therein.

         In response to the Borrower's invitation dated ______________, ____, we
hereby make the following Competitive Bid Quote(s) on the following terms:

                  1. Quoting Lender:

                  2. Person to contact at Quoting Lender:

                  3. We hereby offer to make Competitive Bid Loan(s) in the
         following principal amount(s), for the following interest Period(s) and
         at the following rate(s):

<TABLE>
<CAPTION>
Borrowing               Type of                                     Quotation         Interest
  Date                  Loan(1)                Date(2)              Amount(3)         Period(4)          Rate(5)
---------               -------                -------              ---------         ---------          -------
<S>                     <C>                    <C>                  <C>               <C>                <C>

</TABLE>

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

        (1) At Absolute Rate or Eurodollar Competitive Rate
        (2) As specified in the related Competitive Bid Quote Request
        (3) The principal amount bid for each Interest Period may not exceed the
principal amount requested. Bids must be made for at least $2,500,000 or a
multiple of $500,000 in excess thereof.
        (4) A period of up to 100 days after the making of such Competitive Bid
Loan and ending on a Business Day for Competitive Bid Loans at the Absolute
Rate. For Competitive Bid Loans at the Eurodollar Competitive Rate, one week or
one, two, three, or six months, with the possibility of not more than one (1)
one week Interest Period, as specified in the related Competitive Bid Quote
Request.
        (5) Specify positive margin or negative margin to be added to or
deducted from the Interbank Offered Rate.

                                       H-1

<PAGE>   140

         We understand and agree that the offer(s) set forth above, subject to
the satisfaction of the applicable conditions set forth in the Credit Agreement,
irrevocably obligate(s) us to make the Competitive Bid Loan(s) for which any
offer(s) (is/are) accepted, in whole or in part.

Dated: ______________, ____

                                          Very truly yours,

                                          [NAME OF LENDER]

                                          By:
                                             ----------------------------------
                                                   Authorized Officer

                                       H-2

<PAGE>   141

                                    EXHIBIT I

                            Subordination Provisions

         SECTION ____. AGREEMENT THAT DEBENTURES TO BE SUBORDINATE. The Trustee
acknowledges, the Company covenants and agrees, and each holder of Debentures
issued hereunder by his acceptance thereof likewise covenants and agrees, that
all payments of principal of, premium, if any, and interest on the Debentures
and all other monetary claims, including such monetary claims as may result from
rights of repurchase or rescission, under or in respect of the Debentures shall
be subordinated in accordance with the provisions of this Article Four to the
prior payment in full in cash of all amounts payable under all Senior
Indebtedness of the Company.

         SECTION ____. LIMITATION DURING CERTAIN DEFAULTS ON SENIOR
INDEBTEDNESS. No direct or indirect payment by or on behalf of the Company on
account of principal, premium, if any, or interest on the Debentures or any
other monetary claims, including such monetary claims as may result from rights
of repurchase or rescission, under or in respect of the Debentures whether
pursuant to the terms of the Debentures or upon acceleration or otherwise shall
be made, and no Debentures shall be redeemed or purchased, either directly or
indirectly, by the Company or any Subsidiary, if, at the time of such payment or
purchase or immediately after giving effect thereto, there shall exist a default
in the payment of all or any portion of the obligations under any Senior
Indebtedness.

         SECTION ____. PRIORITY OF SENIOR INDEBTEDNESS. Upon (i) any
acceleration of the principal amount due on the Debentures or (ii) any payment
or distribution of assets of the Company of any kind or character, whether in
cash, property or securities, to creditors upon any dissolution or winding-up or
total or partial liquidation or reorganization of the Company, whether voluntary
or involuntary or in bankruptcy, insolvency, receivership, or other proceedings
or upon an assignment for the benefit of creditors or any other marshalling of
assets or liabilities of the Company, all amounts payable under Senior
Indebtedness shall first be paid in full in cash, before any payment is made on
account of the principal of, premium, if any, or interest on the indebtedness
evidenced by the Debentures, or on account of any other monetary claims,
including such monetary claims as may result from rights of repurchase or
rescission, under or in respect of the Debentures, or any payment is made to
acquire any of the Debentures for cash, property or securities or any
distribution is made with respect to the Debentures of any cash, property or
securities, and upon any such dissolution or winding-up or liquidation or
reorganization any payment or distribution of assets of the Company of any kind
or character, whether in cash, property or securities, to which the holders of
the Debentures or the Trustee under this Indenture would be entitled, except for
the provisions hereof, shall be paid by the Company or by any receiver, trustee
in bankruptcy, liquidating trustee, agent or other person making such payment or
distribution, or by the holders of Debentures or by the Trustee under this
Indenture if received by them or it, directly to he holders of Senior
Indebtedness (pro rata to each such holder on the basis of the respective
amounts of Senior Indebtedness held by such holder) or their representatives to
the extent necessary to pay all such Senior Indebtedness in full, in cash, after
giving effect to any concurrent payment or distribution to

                                       I-1

<PAGE>   142

or for the holders of Senior Indebtedness, before any payment or distribution is
made to the holders of the indebtedness evidenced by the Debentures or to the
Trustee under this Indenture.

         SECTION ____. PAYMENT OVER OF PROCEEDS IN CERTAIN EVENTS. In the event
that any payment or distribution of assets of the Company of any kind or
character not permitted by Sections ___ or ___, whether in cash, property or
securities, shall be received by the Trustee or paying agent if any, or the
holders of the Debentures before all Senior Indebtedness is paid in full cash,
such payment or distribution shall be received and held in trust for the benefit
of the holders of Senior Indebtedness and shall be paid over or delivered to, in
the case of clause (ii) of Section __, the trustee in bankruptcy, receiver,
liquidating trustee, custodian, assignee, agent or other person making payment
or distribution of assets of the Company and, in the case of Section ___ and
clause (i) of Section __, to the Company, in each case in trust for the holders
of, and for application to the payment of, all Senior Indebtedness remaining
unpaid to the extent necessary to pay all obligations in respect of such Senior
Indebtedness in full cash in accordance with its terms, after giving effect to
any concurrent payment or distribution to the holders of such Senior
Indebtedness.

         SECTION ____. NO WAIVER OF SUBORDINATION PROVISIONS. Without notice to
or the consent of the debenture holders or the Trustee, the holders of Senior
Indebtedness may at any time and from time to time, without impairing or
releasing the subordination herein made, change the manner, place or terms of
payments, or change or extend the time of payment of or renew or alter the
Senior Indebtedness, or amend or supplement in any manner any instrument
evidencing the Senior Indebtedness, any agreement pursuant to which the Senior
Indebtedness was issued or incurred or any instrument securing or relating to
the Senior Indebtedness; release any person liable in any manner for the payment
or collection of the Senior Indebtedness, exercise or refrain from exercising
any rights in respect of the Senior Indebtedness against the Company or any
other person; apply any moneys or other property paid by any person or released
in any manner to the Senior Indebtedness; or accept or release any security for
the Senior Indebtedness.

                  SECTION ____. NOTICE TO TRUSTEE OF SPECIFIED EVENTS; RELIANCE
ON CERTIFICATE OF LIQUIDATING AGENT. The Company shall give prompt written
notice to the Trustee and any paying agent of any fact known to the Company that
would prohibit the making of any payment to or by the Trustee or any paying
agent in respect of the Debentures pursuant to the provisions of this Article.

         Upon any distribution of assets of the Company or payment by or on
behalf of the Company referred to in this Article Four, the Trustee and the
holders of the Debentures shall be entitled to rely upon any order or decree of
a court of competent jurisdiction in which any proceedings of the nature
referred to in Section 4.03 are pending, and the Trustee and the holders of the
Debentures shall be entitled to rely upon a certificate of the liquidating
trustee or agent or other person making any such distribution to the Trustee or
to the holders of the Debentures for the purpose of ascertaining the persons
entitled to participate in such distribution, the holders of Senior Indebtedness
and other indebtedness of the Company, the amount thereof or payable thereon,
the amount or amounts paid or distributed thereon and all other facts pertinent
thereto or to this Article Four.

                                       I-2

<PAGE>   143

         SECTION ____. SUBROGATION. Subject to the payment in full of all
amounts payable under or in respect of all Senior Indebtedness, in cash, the
holders of the Debentures (together with holders of any other indebtedness; of
the Company which is subordinate in right of payment to the payment of other
indebtedness of the Company, but is not subordinate in right of payment to the
Debentures and by its terms grants such right of subrogation to the holders
thereof) shall be subrogated to the rights of the holders of Senior Indebtedness
to receive distributions of assets of the Company or payments by or on behalf of
the Company, made on the Senior Indebtedness, until the principal of (and
premium, if any) and interest on the Debentures shall be paid in full; and, for
the purposes of such subrogation, no distributions or payments to the holders of
Senior Indebtedness of any cash, property or securities to which the holders of
the Debentures or the Trustee would be entitled except for the provisions of
this Article Four, and no payment over pursuant to the provisions of this
Article Four to the holders of Senior Indebtedness by the holders of the
Debentures or the Trustee, shall, as between the Company, its creditors other
than the holders of Senior Indebtedness and the holders of Debentures, be deemed
to be a payment by the Company to or on account of Senior Indebtedness, it being
understood that the provisions of this Article Four are, and are intended,
solely for the purpose of defining the relative rights of the holders of the
Debentures, on the one hand, and the holders of Senior Indebtedness on the other
hand.

         SECTION ____. OBLIGATION TO PAY NOT IMPAIRED. Nothing contained in this
Article Four or elsewhere in this Indenture, or in the Debentures, is intended
to or shall alter or impair, as between the Company, its creditors other than
the holders of Senior Indebtedness, and the holders of the Debentures, the
obligation of the Company, which is absolute and unconditional, to pay to the
holders of the Debentures the principal of (and premium, if any) and interest on
the Debentures at the time and place and at the rate and in the currency therein
prescribed, or to affect the relative rights of the holders of the Debentures
and creditors of the Company other than the holders of Senior Indebtedness, nor
shall anything herein or therein prevent the Trustee or the holder of any
Debenture from exercising all remedies otherwise permitted by applicable law
upon default under this Indenture, subject to the right, if any, under this
Article Four of the holders of the Senior Indebtedness in respect of cash,
property or securities of the Company received upon the exercise of any such
remedy.

         SECTION ____. RELIANCE BY SENIOR INDEBTEDNESS ON SUBORDINATION
PROVISIONS. Each holder of a Debenture by his acceptance thereof acknowledges
and agrees that the foregoing subordination provisions are, and are intended to
be, an inducement and a consideration to each holder of any Senior Indebtedness,
whether such Senior Indebtedness was created or acquired before or after the
issuance of the Debentures, to acquire and continue to hold, or to continue to
hold, such Senior Indebtedness, and such holder of Senior Indebtedness shall be
deemed conclusively to have relied on such subordination provisions in acquiring
and continuing to hold, or in continuing to hold, such Senior Indebtedness. The
subordination provisions in this Article Four may be enforced directly by the
holders of Senior Indebtedness.

         SECTION ____. SUBORDINATION NOT TO BE PREJUDICED BY CERTAIN ACTS. No
present or future holder of Senior Indebtedness shall be prejudiced in his right
to enforce subordination of the indebtedness evidenced by the Debentures by any
act or failure to act in good faith by any such

                                       I-3

<PAGE>   144

holder or by noncompliance by the Company with the terms and provisions and
covenants herein regardless of any acknowledgment thereof any such holder may
have or otherwise be charged with.

         SECTION ____. TRUSTEE AUTHORIZED TO EFFECTUATE SUBORDINATION. Each
holder of Debentures by his acceptance thereof authorizes and directs the
Trustee on his behalf to take such action as may be necessary or appropriate to
acknowledge or effectuate the subordination as provided in this Article Four and
appoints the Trustee his attorney-in-fact for any and all such purposes
including, in the event of any dissolution, winding-up, liquidation or
reorganization of the Company (whether in bankruptcy, insolvency, or
receivership or similar proceedings or upon an assignment for the benefit of
creditors or otherwise) tending towards liquidation of the business and assets
of the Company, to file a claim for the unpaid balance of its Debentures in the
form required in said proceedings and to cause said claim to be approved. If the
Trustee does not file a proper claim or proof of debt in the form required in
such proceeding prior to 30 days before the expiration of the time to file such
claim or proof, then the holders of the Senior Indebtedness shall have the right
to file and are hereby authorized to file an appropriate claim or proof for and
on behalf of the holders of said Debentures.

                                       I-4

<PAGE>   145

                                    EXHIBIT J

                      Form of Opinion of Borrower's Counsel

                                                              December 9, 1999

Bank of America, N.A.,
  as Administrative Agent and
  Each of the Lenders Party to the
  Credit Agreement Referenced Below
Bank of America Corporate Center
Charlotte, North Carolina 28255-0065

                  RE: $125,000,000 REVOLVING CREDIT AND LETTER OF CREDIT
                      FACILITIES AMONG BANK OF AMERICA, N.A.,
                      AS ADMINISTRATIVE AGENT, THE LENDERS PARTY THERETO
                      AND SENSORMATIC ELECTRONICS CORPORATION AND CERTAIN
                      OTHER BORROWER SUBSIDIARIES, AS BORROWERS
                      ---------------------------------------------------

Ladies and Gentlemen:

                  We have acted as special New York counsel to Sensormatic
Electronics Corporation, a Delaware corporation (the "Parent"), in connection
with the Revolving Credit Facility in the amount of $125,000,000 (the "Revolving
Credit Facility"), including the $50,000,000 Letter of Credit Facility
constituting part of the Revolving Credit Facility (the "LC Facility"), each
being made available to the Parent by you on this date pursuant to the Credit
Agreement of even date herewith among you, the Lenders and the Parent (the
"Credit Agreement"), and the other transactions contemplated under the Credit
Agreement.

                  This opinion is being delivered in accordance with the
conditions set forth in SECTION 6.1 of the Credit Agreement. All capitalized
terms not otherwise defined herein shall have the meanings provided therefor in
the Credit Agreement.

                  As such counsel, we have reviewed forms of the following
documents:

                  1.  the Credit Agreement;
                  2.  the Revolving Notes;

                                       J-1
<PAGE>   146

                  3.  the Competitive Bid Notes;
                  4.  the Swing Line Note; and
                  5.  the LC Account Agreement.

                  The documents described in items 1 through 5 immediately above
are referred to herein as the "Loan Documents."

                  For purposes of the opinions expressed below, we have assumed
that all natural persons executing the Loan Documents have legal capacity to do
so; that all signatures (other than those of representatives of the Parent on
the Loan Documents) on all documents submitted to us are genuine; that all
documents submitted to us as originals are authentic; and that all documents
submitted to us as certified copies or photocopies conform to the originals of
such documents, which themselves are authentic.

                  In addition, for purposes of giving this opinion, we have
examined such corporate records of the Parent, certificates of public officials,
certificates of appropriate officials of the Parent, and such other documents,
and have made such inquiries as we have deemed appropriate. As to matters of
fact only, we have relied on the representations and warranties of the Parent
set forth in the Loan Documents.

                  Based upon and subject to the foregoing, and subject to the
further assumptions and qualifications set forth below, it is our opinion that:

1. The Parent is a corporation duly incorporated, validly existing and, based
solely on a certificate of the Secretary of State of the State of Delaware dated
December 1, 1999, in good standing under the laws of the State of Delaware. The
Parent has full corporate power and authority to own its assets and conduct the
businesses in which it is now engaged and as are expressly contemplated by the
Loan Documents, and has full corporate power and authority to enter into each of
the Loan Documents to which it is a party and to perform its obligations
thereunder.

2. Each of the Loan Documents to which the Parent is a party has been duly
authorized by the Board of Directors of the Parent (and by any required
shareholder action), has been duly executed and delivered by the Parent.

3. The Credit Agreement constitutes the legal, valid and binding obligation of
the Parent, enforceable against the Parent in accordance with its terms, except
as the enforceability thereof may be limited by (i) applicable bankruptcy,
insolvency, reorganization, fraudulent conveyance, voidable preference,
moratorium or other similar laws affecting the enforcement of creditors' rights
generally, and (ii) general principles of equity (including, without limitation,
as to the availability or non-availability of specific performance and other
equitable remedies), whether considered in a proceeding at law or in equity.

                                      J-2
<PAGE>   147

4. Neither the execution or delivery of, nor performance by the Parent of its
obligations under, the Loan Documents (a) does or will conflict with, violate or
constitute a breach of (i) the charter or bylaws of the Parent, (ii) any laws,
rules or regulations of the State of New York or federal laws, rules or
regulations of the United States of America applicable to the Parent,
or (iii) to our knowledge, any of the agreements of the Parent listed in Exhibit
A hereto, being the agreements and instruments which the Parent has identified
to us as being the material agreements relating to Indebtedness or the financing
of receivables binding upon the Parent or any of its properties, (b) requires
the prior consent of, notice to, license from or filing with any Governmental
Authority which has not been duly obtained or made on or prior to the date
hereof, or (c) does or will result in the creation or imposition of any lien,
pledge, charge or encumbrance of any nature upon or with respect to any of the
properties of the Parent.

5. To our knowledge, there is no pending or threatened, action, suit,
investigation or proceeding (including, without limitation, any action, suit,
investigation, or proceeding under any environmental or labor law), before or by
any court, or governmental department, commission, board, bureau,
instrumentality, agency or arbitral authority, (1) which calls into question the
validity or enforceability of any of the Loan Documents, or the titles to their
respective offices or authority of any officers of the Parent, or (2) in which
there is a reasonable likelihood of an adverse decision which could reasonably
be expected to have a Material Adverse Effect, except that we express no views
as to the ultimate outcome of any of the proceedings described in Parent's
reports on (i) Form 10-K for the fiscal year ended June 30, 1999 or (ii) Form
10-Q for the quarterly period ended September 30, 1999 (and any other actions,
suits or proceedings based primarily on allegations similar to those contained
in such proceedings) or as to whether or not such matters could reasonably be
expected to have a Material Adverse Effect.

6. Assuming that the proceeds of the Loans and Letters of Credit are used
solely as contemplated in Section 2.3 and 7.11 of the Credit Agreement, none of
the transactions contemplated by the Credit Agreement, including, without
limitation, the use of the proceeds of the Loans provided for in the Loan
Documents, will violate or result in a violation of Section 7 of the Securities
Exchange Act of 1934, as amended, any regulations issued pursuant thereto, or
regulations T, U or X of the Board of Governors of the Federal Reserve System.

7. We are qualified to practice in the State of New York and do not purport
to be experts on any laws other than the federal laws of the United States, the
State of New York and the General Corporation Law of the State of Delaware and
this opinion is rendered only with respect to such laws. We have made no
independent investigation of the laws of any other jurisdiction.

8. In rendering the opinions in paragraph 6 above, we have assumed that none of
the proceeds of any Loans or Letters of Credit will be used by the Parent or any
of its Subsidiaries, directly or indirectly, for the purposes of purchasing or
carrying any "margin stock" within the meaning of Regulation U of the Board of
Governors of the Federal Reserve System, and that

                                       J-3
<PAGE>   148

none of the Parent or any of its Subsidiaries will be engaged primarily or as
one of its important activities in the business of purchasing or carrying any
such margin stock.

9. In rendering the opinions in paragraph 3 above, we have assumed, with your
permission, that:

            (a) The Credit Agreement has been duly authorized, executed and
      delivered by the Administrative Agent and each of the Lenders and, to the
      extent provided therein, constitutes the legal, valid and binding
      obligation of the Administrative Agent and the Lenders, enforceable
      against each of them in accordance with its terms, except as such
      enforceability may be limited by (i) applicable bankruptcy, insolvency,
      reorganization, fraudulent conveyance, voidable preference, moratorium or
      other similar laws affecting the enforcement of creditors' rights
      generally, and (ii) general principles of equity (including, without
      limitation, as to the availability or non-availability of specific
      performance and other equitable remedies), whether considered in a
      proceeding at law or in equity.

            (b) Neither the authorization, execution and delivery of the Credit
      Agreement or the Notes nor the consummation of the transactions
      contemplated therein, nor the fulfillment or compliance with the terms
      thereof, violates or will result in the violation of the provisions of any
      law, rule or regulation of the State of Florida (the jurisdiction in which
      the Parent is located), the State of North Carolina (the jurisdiction in
      which the Loans and Reimbursement Obligations in Dollars are to be paid),
      or of any other jurisdiction in which the Loans or Reimbursement
      Obligations are to be paid, or any other jurisdiction in which any
      Borrower may be located. Illegality in any of those jurisdictions could,
      in certain circumstances, affect the enforceability of the obligations of
      the Parent as Borrower or as guarantor under the guaranty set forth in
      Section 2.1(g) of the Credit Agreement. Nevertheless, we note that in a
      1990 decision of the United States District Court for the Southern
      District of New York, a guarantor was unsuccessful in asserting illegality
      under the laws of the principal debtor's jurisdiction as a defense against
      payment under a guarantee that was stated to be governed by New York law,
      the court holding that extraterritorial effect would be given to the
      foreign law only by application of principles of comity. BANK LEUMI TRUST
      COMPANY OF NEW YORK V. DAVID WULKAN, 735 F. Supp. 72 (S.D.N.Y. April 2,
      1990). Without having made any specific inquiry into this matter, we are
      not aware of factors present in the Credit Agreement which, under
      circumstances existing today, would cause a court in the State of New York
      to apply principles of comity, but no confident conclusion can be
      expressed without a detailed examination of matters both intrinsic and
      extrinsic to the transaction, such as the laws, rules and regulations of
      each relevant jurisdiction, and the policies of relevant agencies of the
      government of the United States toward those jurisdictions and toward the
      particular matters that are the subject of the relevant foreign laws,
      rules and regulations to which extraterritorial effect would be given.

                                       J-4
<PAGE>   149

      The foregoing opinions are subject to the qualifications that:

            (I) We express no opinion as to (a) any Borrower's title to or
      rights in any of its assets or other properties; (b) the enforceability of
      the following Sections of the Credit Agreement: Section 1.2(j), Section
      12.6 (insofar as it purports to preclude the validity or effectiveness of
      non-written amendments, waivers or other modifications) or Section 12.10;
      (c) the jurisdiction of any court other than the courts of the State of
      New York over the subject matter of any dispute arising out of the Loan
      Documents or over the Parent or any other Borrower; (d) any waiver of
      rights to trial by jury or defenses based on an inconvenient forum; and
      (e) any provision of the Credit Agreement or the other Loan Documents
      purporting to provide for interest after judgment, to establish
      evidentiary standards, or to grant or waive rights of set-off or
      counterclaim.

            (II) Without limiting the generality of the statements in paragraph
      I above, we express no opinion as to the applicability of the laws of the
      State of Florida, the State of North Carolina or any other jurisdiction
      that may limit the enforceability of provisions for interest on defaulted
      obligations, or the maximum rate or amount of interest that may be
      charged, taken, collected or received with respect to the obligations
      under the Credit Agreement, the Notes or any of the other Loan Documents,
      or as to the effect of such laws (other than the State of New York), if
      applicable.

            (III) We point out that the enforceability of indemnities set forth
      in the Credit Agreement or the Notes may be limited by applicable
      securities laws, by public policy or by the discretion of the court, and
      in particular, we express no opinion as to the enforceability of any
      provision of the Loan Documents that purports to exculpate or indemnify
      any party for its own gross negligence or willful misconduct.

            (IV) Without limiting the exceptions to the opinion expressed in
      paragraph 3, we point out that, in applying general principles of equity,
      a court may decline to enforce the right of the Administrative Agent or
      the Lenders to accelerate the maturity of the Loans or to exercise other
      remedies in connection with a default if such rights were to be invoked in
      the context of a default that is immaterial, or in the context of fraud or
      exploitative overreaching by the Administrative Agent or any Lender, or
      unconscionable conduct by the Administrative Agent or any Lender to
      exploit a technical breach. Moreover, provisions of the Credit Agreement
      or the Notes that permit the Administrative Agent or any Lender to take
      actions or make determinations may be subject to requirements that such
      actions be taken and such determinations be made on a reasonable basis and
      in good faith.

            (V) We caution you that not all of the waivers and consents set
      forth in Section 2.1(g) of the Credit Agreement (the Parent guaranty)
      necessarily would be given effect in

                                       J-5
<PAGE>   150

      the State of New York. For example, the Lenders' purported right, set
      forth in Section 2.1(g)(ii)(B)(iii) of the Credit Agreement, to change the
      time, manner or place of payment of, or any other term of, the
      Obligations, without affecting their rights under said Section 2.1(g)
      might, notwithstanding those provisions, affect the rights of the
      Administrative Agent or Lenders against the Parent, especially if the
      relevant change, amendment, waiver or consent were to be of an essential
      term of the Credit Agreement or the Notes, or were to be so extensive as
      to create a new contract. Nevertheless, we do not believe that the
      inclusion of such provisions would render Section 2.1(g) invalid or
      otherwise unenforceable. We also note that a decision of the United States
      District Court for the Southern District of New York held that a "sweeping
      waiver" of the type set forth in portions of said Section
      2.1(g)(ii)(B)(iii) was enforceable, notwithstanding allegations of
      tortious interference with contractual relations, interference with
      prospective economic advantage, negligence and violations of certain laws.
      AMERICAN EXPRESS BANK, LTD. V. PETER L. COKER, ET AL., 1990 WL 100888
      (S.D.N.Y. July 13, 1990).

            (VI) We wish to point out further that, if enforcement of the
      obligations of the Parent or any other Borrower were to be sought in the
      State of New York with respect to obligations denominated in a currency
      other than U.S. Dollars, (a) a New York statute provides that a judgment
      rendered by a court of the State of New York in respect of an obligation
      denominated in a currency other than U.S. Dollars (a "Foreign Currency")
      may be rendered in such Foreign Currency, and if so would be converted
      into U.S. Dollars at the rate of exchange prevailing on the date of entry
      of the judgment; and (b) a judgment rendered by a Federal court in New
      York in respect of an obligation denominated in a Foreign Currency may be
      expressed in U.S. Dollars, but we express no opinion as to the rate of
      exchange such court would apply.

            (VII) We note further that the willingness of any United States
      federal court to accept jurisdiction over any dispute arising out of the
      Credit Agreement or any of the other Loan Documents may, notwithstanding
      the submission by the Borrowers to the personal jurisdiction of certain
      federal courts pursuant to Section 12.15 of the Credit Agreement, be
      subject to applicable law and to such court's discretion.

                  As to any matters regarding the laws of the State of Florida,
we have relied, with your permission, solely on the opinion of Walter Engdahl,
dated December 9, 1999, addressed to you, a copy of which is annexed to this
letter as Appendix A. We have no knowledge of, and have made no independent
investigation of, any matters of Florida law.

                  In this opinion letter, the phrase "to our knowledge" means to
the actual knowledge of those attorneys in our firm who are actively involved in
work on behalf of the Parent, without independent investigation outside the
firm. The phrase "legal, valid and binding obligation of the Parent enforceable
against the Parent in accordance with its terms" means that the obligation in
question is of the type that is capable of enforcement under the law of the
State

                                       J-6
<PAGE>   151

of New York, but does not mean that such obligation necessarily would be
enforced by a court in all circumstances. In addition, if any obligation is
enforced, we express no opinion as to what remedy, whether or not specified in
the Credit Agreement or the other Loan Documents, would be awarded.

                  This opinion speaks only as of the date hereof, and we do not
undertake any duty to advise you of any change herein. Without limiting the
generality of the foregoing, we note that certain agreements to which the
Borrowers now are or hereafter may become parties may contain limitations on the
incurrence from time to time of Indebtedness and other obligations by the Parent
and its Subsidiaries, which limitations could be violated by a borrowing of
Loans or the issuance of Letters of Credit under the Credit Agreement by the
Parent or the other Borrowers. We do not undertake to advise you of those
circumstances.

                  Our opinions contained herein are rendered at the request of
the Parent solely in connection with the transactions contemplated under the
Loan Documents and may not be relied upon in any manner by any Person other than
the addressees hereof, any successor or assignee of any addressee (including
successive assignees) and any Person who shall acquire a participation interest
in the interest of any Lender (collectively, the "Reliance Parties"), or by any
Reliance Party for any other purpose. Our opinions herein shall not be quoted or
otherwise included, summarized or referred to in any publication or document, in
whole or in part, for any purpose whatsoever, or furnished to any Person other
than a Reliance Party (or a Person considering whether to become a Reliance
Party), except as may be required of any Reliance Party by applicable law or
regulation or in accordance with any auditing or oversight function or request
of regulatory agencies to which a Reliance Party is subject.

                                Very truly yours,

                                       J-7
<PAGE>   152

                                    EXHIBIT A
                               MATERIAL AGREEMENTS

Note Agreement, dated as of January 15, 1993, of Sensormatic Electronics
Corporation ("Sensormatic") to each of the Purchasers named therein, and related
documents, for the issuance and sale by Sensormatic of $135,000,000 aggregate
principal amount of its Senior Notes.

Note Agreement, dated as of March 29, 1996, of Sensormatic to each of the
Purchasers named therein, and related documents, for the issuance and sale by
Sensormatic of $350,000,000 aggregate principal amount of its Senior Notes.

Receivables Purchase Agreement, dated as of July 31, 1996, among Sensormatic,
NationsBank National Association (South) ("NationsBank"), together with such
other financial institutions that may become parties thereto, as Purchaser, and
NationsBank, as Agent.

Amended and Restated Multicurrency Revolving Credit Agreement, dated as of March
18, 1997, as amended, by and among Sensormatic, the other Borrowing Subsidiaries
which may form time to time become parties thereto, the Banks, BankBoston, N.A.,
as Agent for the Banks, and NationsBank, N.A., as Syndication Agent.

Receivables Purchase Agreement, dated as of June 27, 1997, as heretofore
amended, between Sensormatic and Sensor SPC Inc.

Purchase and Sale Agreement, dated as of April 16, 1999, as heretofore amended,
among First Sierra Financial, Inc., Sensormatic Electronics Corporation and
Sensor SPC Inc.

Master Program Agreement, dated as of April 16, 1999 by and between First Sierra
Financial, Inc. and Sensormatic Electronics Corporation.

Servicing Agreement, dated as of April 16, 1999 by and between First Sierra
Financial, Inc. and Sensormatic Electronics Corporation.

Guarantee of the Sensormatic Electronics Corporation, dated 24 March 1997 in
favor of Mont Blanc Receivables Financing Limited, Bankers Trustee Company
Limited and MBRF Trustee Limited, with respect to the obligations of Sensormatic
Holdings Limited, Sensormatic Limited, Sensormatic CamEra Limited and
Sensormatic Finance Limited arising under the Sensormatic Standard Terms and
Conditions in relation to the Sensormatic Offer to Sell, the Sensormatic
Framework Agreement, the Sensormatic Subordinated Loan Facility Agreement, the
Sensormatic Bank Account Agreement, the Deed of Joinder, and the Sensormatic
Administration Agreement referred to in such Guarantee.

Factoring Agreement, dated as of November 1, 1995, between Sensormatic
Electronics Corporation and the CIT Group/Commercial Services, Inc., as amended.

                                       J-8
<PAGE>   153

Receivables Purchase Facility Agreement, dated as of December 21, 1995, among
Certain Designated Subsidiaries of Sensormatic Electronic Corporation,
Sensormatic Electronic Corporation, ABN Amro Bank (Belgie) N.V. as Agent and the
Banks party thereto. Guarantee by Sensormatic Electronics Corporation, dated 23
June 1999, in favor of Franfinance S.A. relating to the Protocol Agreement dated
June 1999 between Sensormatic E.C. S.r.l and Franfinance S.A.

1997 Guarantee by Sensormatic Electronics Corporation in favor of Franfinance
S.A. relating to the Financial Leasing Contract dated September 21, 1995 between
Franfinance Location S.A. and Sensormatic France S.A.

Guarantee of Sensormatic Electronics Corporation in favor of Newcourt AG & Co.,
relating to the Lease Financing Program Agreement, dated 2 August 1995, and the
Portfolio Acquisition Agreement, dated 30 September 1999, between Sensormatic
GmbH and Newcourt AG & Co.

                                       J-9
<PAGE>   154

                                                                      APPENDIX A

                                                              December 9, 1999

Bank of America, N.A.,
  as Administrative Agent and
  Each of the Lenders Party to the
  Credit Agreement Referenced Below
Bank of America Corporate Center
Charlotte, North Carolina 28255-0065

                  RE:  $125,000,000 REVOLVING CREDIT AND LETTER OF
                       CREDIT FACILITIES AMONG BANK OF AMERICA, N.A.,
                       AS ADMINISTRATIVE AGENT, THE LENDERS PARTY THERETO
                       AND SENSORMATIC ELECTRONICS CORPORATION AND CERTAIN
                       OTHER BORROWER SUBSIDIARIES, AS BORROWERS
                       ---------------------------------------------------

Ladies and Gentlemen:

                  I am the Vice President-General Counsel of Sensormatic
Electronics Corporation (the "Parent") and as such I am generally familiar with
the terms of the Credit Agreement of even date herewith among you, the Lenders
and the Parent (the "Credit Agreement"), and the other transactions contemplated
under the Credit Agreement.

                  This opinion is being delivered in accordance with the
conditions set forth in SECTION 6.1 of the Credit Agreement. All capitalized
terms not otherwise defined herein shall have the meanings provided therefor in
the Credit Agreement.

                  As such counsel, I have reviewed forms of the following
documents:

                  1.  the Credit Agreement;
                  2.  the Revolving Notes;
                  3.  the Competitive Bid Notes;
                  4.  the Swing Line Note; and
                  5.  the LC Account Agreement.

                                      J-10
<PAGE>   155

                  The documents described in items 1 through 5 immediately
above are referred to herein as the "Loan Documents."

                  For purposes of the opinions expressed below, I have assumed
that all natural persons executing the Loan Documents have legal capacity to do
so; that all signatures (other than those of representatives of the Parent on
the Loan Documents) on all documents submitted to me are genuine; that all
documents submitted to me as originals are authentic; and that all documents
submitted to me as certified copies or photocopies conform to the originals of
such documents, which themselves are authentic.

                  In addition, for purposes of giving this opinion, I have
examined such corporate records of the Parent, certificates of public officials,
certificates of appropriate officials of the Parent, and such other documents,
and have made such inquiries as I have deemed appropriate. As to matters of fact
only, I have relied on the representations and warranties of the Parent set
forth in the Loan Documents.

                  Based upon and subject to the foregoing, and subject to the
further assumptions and qualifications set forth below, it is my opinion that:

                  1. Based solely on a certificate of the Secretary of State of
the State of Florida dated December 1, 1999, the Parent is in good standing as a
foreign corporation in the State of Florida.

                  2. The execution, delivery and performance by the Parent of
the Credit Agreement and the other Loan Documents (a) do not contravene, or
constitute a default under, any provision of applicable law, rule or regulation
of the State of Florida, and (b) do not require any registration or consent by
or filing with any governmental authority of the State of Florida.

                  3. Assuming that no Note has been executed or delivered in the
State of Florida, and that no Bank brings its Note into or holds its Note in the
State of Florida for any purpose whatsoever, there is no Florida documentary
stamp tax payable in the State of Florida in connection with the execution,
delivery or performance by the Borrowers of the Credit Agreement or the other
Loan Documents.

                  I am qualified to practice law in the State of Florida and do
not purport to be expert on any laws other than the laws of the State of
Florida, and this opinion is rendered only with respect to such laws. I have
made no investigation of the laws of any other jurisdiction.

                  My opinions contained herein are rendered at the request of
the Parent solely in connection with the transactions contemplated under the
Loan Documents and may not be relied upon in any manner by any Person other than
the addressees hereof, any successor or assignee of any addressee (including
successive assignees) and any Person who shall acquire a participation interest
in the interest of any Lender (collectively, the "Reliance Parties"), or by any
Reliance

                                       J-11
<PAGE>   156

Party for any other purpose. My opinions herein shall not be quoted or
otherwise included, summarized or referred to in any publication or document, in
whole or in part, for any purpose whatsoever, or furnished to any Person other
than a Reliance Party (or a Person considering whether to become a Reliance
Party), except as may be required of any Reliance Party by applicable law or
regulation or in accordance with any auditing or oversight function or request
of regulatory agencies to which a Reliance Party is subject.

                  This opinion speaks only as of the date hereof, and I do not
undertake any duty to advise you of any changes herein.

                                          Very truly yours,

                                          Walter A. Engdahl

                                       J-12
<PAGE>   157

                                    EXHIBIT K

                             Compliance Certificate

Bank of America, N.A.,
as Administrative Agent
101 North Tryon Street, 15th Floor
NC1-001-15-04
Charlotte, North Carolina  28255
Attention: Agency Services
Telefacsimile:  (704) 386-9923

Bank of America, N.A.,
as Administrative Agent

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

---------------------------------------
Attention:
          -----------------------------
Telefacsimile:    (___) ___-____

         Reference is hereby made to the Credit Agreement dated as of December
9, 1999 (the "Agreement") among Sensormatic Electronics Corporation, a Delaware
corporation (the "Borrower"), the Lenders (as defined in the Agreement) and Bank
of America, N.A., as Administrative Agent for the Lenders ("Administrative
Agent"). Capitalized terms used but not otherwise defined herein shall have the
respective meanings therefor set forth in the Agreement. The undersigned, a duly
authorized and acting Authorized Representative, hereby certifies to you as of
__________ (the "Determination Date") as follows:

1.       Calculations:

                        COMPLIANCE CERTIFICATE WORKSHEET

<TABLE>
<CAPTION>

<S>               <C>                                                                             <C>

         A.       Net Worth

                  Consolidated Net Worth at such time of determination                           $__________
                  (Not to be less than the amount set forth in SECTION 11.1
                  of the Credit Agreement

         B.       Consolidated Senior Leverage Ratio

                  (1)      Consolidated Senior Indebtedness outstanding at                       $__________
                           such time of determination
</TABLE>

                                       K-1

<PAGE>   158

<TABLE>
<CAPTION>

<S>               <C>                                                                             <C>
                  (2)      Subordinated Indebtedness at such time of                             $__________
                           determination

                  (3)      1 minus 2                                                             $__________

                  (4)      Consolidated Total Capitalization at such time                        $__________
                           of determination

                  (5)      Amount of item (3) not to exceed 50% of amount
                           of item (4)

         C.       Consolidated Leverage Ratio

                  (1)      Consolidated Indebtedness outstanding at such                         $__________
                           time of determination

                  (2)      Consolidated Total Capitalization at such time                        $__________
                           of determination

                  (3)      Amount of item (1) not to exceed 55% of amount
                           of item (2)

         D.       Consolidated Interest Coverage Ratio

                  (1)      Consolidated EBIT                                                     $__________

                  (2)      Consolidated Interest Expense                                         $__________

                  (3)      Ratio of (1) to (2)                                                   ____ to 1.00

                  (4)      Item (3) must not be less than .55 to 1.00

         E.       Capital Expenditures

                  (1)      Capital Expenditures for Fiscal Year ending ________                  $__________

                  (2)      Amount of Item (1) must not exceed $75,000,000
</TABLE>

2.       No Default

                  A. Since __________ (the date of the last similar
         certification), no Default or Event of Default specified in ARTICLE X
         of the Agreement has occurred and is continuing.

                                       K-2

<PAGE>   159

                  B. If a Default or Event of Default has occurred since
         __________ (the date of the last similar certification), the Borrower
         proposes to take the following action with respect to such Default or
         Event of Default: _____________________________________________________
         _____________________________________________________________________.
                  (NOTE, if no Default or Event of Default has occurred, insert
                  "Not Applicable").

         The Determination Date is the date of the last required financial
statements submitted to the Lenders in accordance with SECTION 8.1 of the
Agreement.

         IN WITNESS WHEREOF, I have executed this Certificate this _____ day
of __________, _______.

                                    By:
                                       ----------------------------------------
                                             Authorized Representative

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

                                       K-3

<PAGE>   160

                                    EXHIBIT L

                            Form of Assumption Letter

                                     [Date]

To Bank of America, N.A., as
Administrative Agent and
the Lenders party to the Credit
Agreement referred to below

Ladies and Gentlemen:

         Reference is made to the Credit Agreement dated as of December 9, 1999
among Sensormatic Electronics Corporation (the "Parent"), the Borrowing
Subsidiaries from time to time party thereto, the financial institutions from
time to time party thereto as Lenders and Bank of America, N.A., as
Administrative Agent (as amended, restated or otherwise modified from time to
time, the "Credit Agreement"). Terms used herein and not otherwise defined
herein shall have the meanings assigned to such terms in the Credit Agreement.

         1.       BORROWING SUBSIDIARY.

         (i) The undersigned, _________________ (the "Subsidiary") a
         ______________ corporation and a Subsidiary of the Parent, proposes to
         become a "Borrowing Subsidiary" under the Credit Agreement, and
         accordingly hereby agrees that from the date hereof until the payment
         in full of the principal of and interest on all Loans made to it or on
         its behalf and termination of all Letters of Credit issued for its
         benefit under the Credit Agreement and performance of all of its other
         obligations thereunder, and termination of its status as a "Borrowing
         Subsidiary" as provided below, it shall perform, comply with and be
         bound by each of the provisions of the Credit Agreement which are
         stated to apply to a "Borrowing Subsidiary" or a "Borrower". In
         addition, the Subsidiary hereby represents and warrants that: (i) each
         of the representations and warranties set forth in ARTICLE VII of the
         Credit Agreement is true and correct with respect to the Subsidiary as
         of the date hereof and (ii) it has heretofore received a true and
         correct copy of the Credit Agreement (including any amendments thereto,
         modifications thereof or waivers thereunder) as in effect on the date
         hereof.

         (ii) So long as the principal of and interest on all Loans made to the
         Subsidiary or on its behalf under the Credit Agreement shall have been
         paid in full and all Letters of Credit issued for its benefit
         terminated and all other obligations of the Subsidiary under the Credit
         Agreement shall have been fully performed, the Subsidiary may, by not
         less than five Business Days' prior notice to the Administrative Agent,
         terminate its status as a "Borrowing Subsidiary."

                                       L-1

<PAGE>   161

         2. CONDITIONS PRECEDENT. No Lender shall make any Loan to or on behalf
of the Subsidiary unless the Subsidiary has furnished to the Administrative
Agent, with sufficient copies for the Lenders, the following items:

         (i)      Copies of the articles of incorporation or similar
                  organizational documents of the Subsidiary, together with all
                  amendments, and a certificate of good standing (if available),
                  both certified by the appropriate governmental officer in its
                  jurisdiction of incorporation.

         (ii)     Copies, certified by an appropriate officer or director of the
                  Subsidiary, of its bylaws or similar organizational documents
                  and of its Board of Directors resolutions (and resolutions of
                  other bodies, if any are deemed necessary by counsel for any
                  Lender) authorizing the execution of this Assumption Letter
                  and all other Loan Documents to which the Subsidiary is a
                  party.

         (iii)    An incumbency certificate, executed by an appropriate officer
                  or director of the Subsidiary, which shall identify by name
                  and title and bear the signature of the officers or directors
                  of the Subsidiary authorized to sign this Assumption Letter
                  and the other Loan Documents to which it is a party and to
                  request Loans thereunder, upon which certificate the
                  Administrative Agent and the Lenders shall be entitled to rely
                  until informed of any change in writing by the Subsidiary.

         (iv)     A written opinion of counsel to the Subsidiary, addressed to
                  the Lenders, in form and substance satisfactory to the
                  Administrative Agent.

         (v)      Notes issued by the Subsidiary to the order of each of the
                  Lenders.

         (vi)     Written money transfer instructions, in substantially the form
                  of EXHIBIT "A" attached hereto addressed to the Administrative
                  Agent on behalf of the Subsidiary and signed by duly
                  authorized officer, together with such other related money
                  transfer authorizations as the Administrative Agent may have
                  reasonably requested.

         (vii)    Such other documents as any Lender or its counsel may have
                  reasonably requested.

         3. REPRESENTATIONS. The Subsidiary further represents and warrants to
the Lenders as follows:

         (i)      EXISTENCE AND POWER. The Subsidiary and each of its
                  Subsidiaries:

                  (a)      is a corporation, partnership or limited liability
                           company duly organized, validly existing and in good
                           standing under the laws of the jurisdiction of its
                           incorporation;

                                       L-2

<PAGE>   162

                  (b)      has the power and authority and governmental
                           licenses, authorizations, consents and approvals to
                           own its assets, carry on its business and to execute,
                           deliver, and perform its obligations under this
                           Assumption Letter and the Loan Documents;

                  (c)      is duly qualified and is licensed and in good
                           standing under the laws of each jurisdiction where
                           its ownership, lease or operation of property or the
                           conduct of its business requires such qualification
                           or license, except to the extent failure to so
                           qualify would not have a Material Adverse Effect; and

                  (d)      is in compliance with all laws, rules and
                           regulations, except to the extent the failure to so
                           comply would not have a Material Adverse Effect.

         (ii)     AUTHORIZATION; NO CONTRAVENTION. The execution, delivery and
                  performance by the Subsidiary and its Subsidiaries of this
                  Assumption Letter and each other Loan Document to which such
                  Person is party have been duly authorized by all necessary
                  action and do not and will not:

                  (a)      contravene the terms of any of that Person's
                           Organization Documents;

                  (b)      conflict with or result in a material breach or
                           contravention of, or the creation of any Lien under,
                           any document evidencing any material contractual
                           obligation to which such Person is a party or any
                           order, injunction, writ or decree of any Governmental
                           Authority to which such Person or its property is
                           subject; or

                  (c)      violate any laws, rules or regulations applicable to
                           it.

         (iii)    GOVERNMENTAL AUTHORIZATION. No approval, consent, exemption,
                  authorization, or other action by, or notice to, or filing
                  with, any Governmental Authority is necessary or required in
                  connection with the execution, delivery or performance by, or
                  enforcement against, the Subsidiary or any of its Subsidiaries
                  of this Assumption Letter or any other Loan Document.

         (iv)     BINDING EFFECT. This Assumption Letter and each other Loan
                  Document to which the Subsidiary or any of its Subsidiaries is
                  a party constitute the legal, valid and binding obligations of
                  the Subsidiary and any of its Subsidiaries to the extent it is
                  a party thereto, enforceable against such Person in accordance
                  with their respective terms (except as enforceability may be
                  limited by applicable bankruptcy, insolvency, or similar laws
                  affecting the enforcement of creditors' rights generally or by
                  equitable principles relating to enforceability).

         (v)      FILING. To ensure the enforceability or admissibility in
                  evidence of this Assumption Letter, the Notes issued by the
                  Subsidiary or any of the other Loan Documents in the

                                       L-3

<PAGE>   163

                  Subsidiary's country of organization or incorporation and
                  country which is its principal place of business (each, a
                  "Subject Country"), it is not necessary that this Assumption
                  Letter or such Notes or any other documents be filed or
                  recorded with any court or other authority in any Subject
                  Country or that any stamp or similar tax be paid in respect of
                  this Assumption Letter or such Notes or any other documents.
                  The qualification by any Lender or the Administrative Agent
                  for admission to do business under the laws of any Subject
                  Country does not constitute a condition to, and the failure to
                  so qualify does not affect, the exercise by any Lender or the
                  Administrative Agent of any right, privilege, or remedy
                  afforded to any Lender or the Administrative Agent in
                  connection with the Loan Documents or the enforcement of any
                  such right, privilege, or remedy. The performance by any
                  Lender or the Administrative Agent of any action required or
                  permitted under the Loan Documents will not violate any law or
                  regulation of any Subject Country or any political subdivision
                  thereof or result in any tax liability or other unfavorable
                  consequence to such party pursuant to the laws of any such
                  Subject Country or political subdivision or taxing authority
                  thereof or any rule or regulation of any federation or
                  organization or similar entity of which such Subject Country
                  is a member.

         (vi)     NO IMMUNITY. Neither the Subsidiary nor any of its assets is
                  entitled to immunity from suit, execution, attachment or other
                  legal process. The Subsidiary's execution and delivery of this
                  Assumption Letter and the other Loan Documents to which it is
                  a party constitute, and the exercise of its rights and
                  performance of and compliance with its obligations under such
                  Loan Documents will constitute, private and commercial acts
                  done and performed for private and commercial purposes.

         (vii)    CREDIT AGREEMENT. Affirms each of the representations and
                  warranties contained in ARTICLE VII of the Credit Agreement.

         4. THE PARENT GUARANTY OF SUBSIDIARY OBLIGATIONS. The Parent expressly
agrees as follows:

         (i)      DIRECT OBLIGATIONS. The Parent hereby unconditionally and
                  irrevocably affirms to the Lenders its direct liability for,
                  and guarantees to the Lenders, the due and punctual payment of
                  all obligations and liabilities of the Subsidiary to the
                  Lenders, whether arising under this Assumption Letter, the
                  Credit Agreement, the other Loan Documents or any other
                  documents related thereto (collectively, the "Borrowing
                  Subsidiary Obligations") including, but not limited to, the
                  due and punctual payment of principal of and interest on the
                  Notes issued by the Subsidiary, and punctual payment of all
                  other sums now or hereafter owed by the Subsidiary under this
                  Assumption Letter, the Credit Agreement, the Loan Documents,
                  any Note issued by the Subsidiary and any other document
                  related thereto as and when the same shall become due (whether
                  by acceleration or otherwise) and according to the terms
                  hereof and thereof. In case of failure by the Subsidiary
                  punctually to pay any Borrowing Subsidiary Obligation, the
                  Parent hereby unconditionally agrees to cause such

                                       L-4

<PAGE>   164

                  payment to be made punctually as and when the same shall
                  become due and payable, whether at maturity or by declaration
                  or otherwise, and as if such payment were made by the
                  Subsidiary.

         (ii)     OBLIGATIONS UNCONDITIONAL. The obligations of the Parent under
                  this Assumption Letter shall be irrevocable, unconditional and
                  absolute and, without limiting the generality of the
                  foregoing, shall not be released, discharged or otherwise
                  affected by:

                           (a) any extension, renewal, settlement, compromise,
                  waiver or release in respect of any obligation of the
                  Subsidiary (or any other Borrowing Subsidiary) or under any
                  Note or other agreement issued or entered into by any
                  Subsidiary (or any other Borrowing Subsidiary), by operation
                  of law or otherwise;

                           (b) any modification or amendment of or supplement to
                  this Assumption Letter or any Loan Document;

                           (c) any compromise, settlement, modification,
                  amendment, waiver, release, non-perfection or invalidity of or
                  to any direct or indirect security, guarantee or other
                  liability of any third party with respect to any Borrowing
                  Subsidiary Obligation;

                           (d) any change in the corporate existence, structure,
                  or ownership of, or any insolvency, bankruptcy, reorganization
                  or other similar proceeding affecting, the Subsidiary (or any
                  other Borrowing Subsidiary) or their assets or any resulting
                  release or discharge of any Borrowing Subsidiary Obligation;

                           (e) the existence of any claim, set-off or other
                  right which the Parent may have at any time against the
                  Subsidiary (or any other Borrowing Subsidiary), the
                  Administrative Agent, any Lender or any other Person, whether
                  or not arising in connection with this Assumption Letter or
                  any other Loan Document; provided, however, that nothing
                  herein shall prevent the assertion of any such claim by
                  separate suit or compulsory counterclaim;

                           (f) any invalidity or unenforceability relating to or
                  against the Subsidiary (or any other Borrowing Subsidiary) for
                  any reason of this Assumption Letter or any Loan Document, or
                  any provision of applicable law or regulation purporting to
                  prohibit the payment by the Subsidiary (or any other Borrowing
                  Subsidiary) of the principal of or interest on any Note issued
                  by the Subsidiary (or any other Borrowing Subsidiary) or any
                  other amount payable by the Subsidiary (or any other Borrowing
                  Subsidiary) under this Assumption Letter, the Credit Agreement
                  or any Loan Document; or

                                       L-5

<PAGE>   165

                           (g) any other act or omission to act or delay of any
                  kind by the Subsidiary (or any other Borrowing Subsidiary),
                  the Administrative Agent, any Lender or any other Person or
                  any other circumstance whatsoever that might, but for the
                  provisions of this paragraph, constitute a legal or equitable
                  discharge of the obligations of the Parent under this
                  Assumption Letter, the Credit Agreement or any Loan Document.

         (iii)    DISCHARGE ONLY UPON PAYMENT IN FULL; REINSTATEMENT IN CERTAIN
                  CIRCUMSTANCES. The Parent's obligations hereunder shall remain
                  in full force and effect until each Commitment has expired or
                  is terminated and the principal of and interest on the Notes
                  and all other Obligations payable under this Assumption Letter
                  and the Loan Documents shall have been paid in full. If at any
                  time any payment of the principal of or interest on any Note
                  issued by the Subsidiary or any other amount payable by the
                  Subsidiary under this Assumption Letter or any Loan Document
                  is rescinded or must be otherwise restored or returned upon
                  the insolvency, bankruptcy or reorganization of the Subsidiary
                  or otherwise, the Parent's obligations under this Assumption
                  Letter with respect to such payment shall be reinstated at
                  such time as though such payment had become due but had not
                  been made at such time. This provision shall survive the
                  termination of this Assumption Letter and the payment in full
                  of the Obligations.

         (iv)     WAIVER. The Parent irrevocably waives acceptance hereof,
                  presentment, demand, protest and any notice not provided for
                  herein, as well as any requirement that at any time any action
                  be taken by any Person against the Subsidiary or any other
                  Person. The Parent waives any benefit of the collateral, if
                  any, which may from time to time secure the Obligations or any
                  part thereof and authorizes the Administrative Agent or the
                  Lenders to take any action, or exercise any remedy with
                  respect thereto, which the Administrative Agent or the Lenders
                  in its or their sole discretion shall determine, without
                  notice to the Parent.

         (v)      STAY OF ACCELERATION. If acceleration of the time for payment
                  of any amount payable by the Subsidiary under this Assumption
                  Letter or any of the Loan Documents is stayed upon the
                  insolvency, bankruptcy or reorganization of the Subsidiary or
                  any other Person, all such amounts otherwise subject to
                  acceleration under the terms of this Assumption Letter or any
                  Loan Document shall nonetheless be payable by the Parent
                  hereunder forthwith on demand by the Administrative Agent.

         (vi)     PAYMENTS. All payments to be made by the Parent pursuant to
                  this Assumption Letter shall be made at the times and in the
                  manner and in the currency prescribed for payments in the
                  Credit Agreement.

         (vii)    DELAY OF SUBROGATION. Until the Parent's obligations under
                  this Assumption Letter have been paid in full and terminated,
                  the Parent shall not exercise any right of subrogation with
                  respect to payments made by the Parent pursuant to this
                  Assumption Letter.

                                       L-6

<PAGE>   166

         5. NOTICE. Any notice to be given to the Subsidiary may be given to the
Parent (and shall conclusively be deemed to have been received by the Subsidiary
when received, or deemed received, by the Parent) in the manner set forth in the
Credit Agreement. The Subsidiary agrees that the Parent may give notices under
this Assumption Letter and the Loan Documents on behalf of the Subsidiary, and
that any such notice given by the Parent on behalf of the Subsidiary shall be
binding upon the Subsidiary.

         6.       JURISDICTION AND GOVERNING LAW.

         (i)      Without limiting the provisions of SECTION 12.15 of the Credit
                  Agreement, the Subsidiary and the Parent each irrevocably and
                  unconditionally submits, for itself and its property, to the
                  jurisdiction of the United States federal court for the Middle
                  District of Florida or any Florida state court, and any
                  appellate court from any thereof, in any action or proceeding
                  arising out of or relating to this Assumption Letter, the
                  Credit Agreement or any other Loan Document or for recognition
                  or enforcement of any judgment relating thereto, and the
                  Subsidiary and the Parent each irrevocably and unconditionally
                  agrees that all claims in respect of any such action or
                  proceeding may be heard and determined in any such court.

         (ii)     This Assumption Letter shall be governed by, and construed in
                  accordance with, the internal laws (and not the law of
                  conflicts) of the State of New York; provided that the
                  Administrative Agent and the Lenders shall retain all rights
                  arising under federal law.

                               [signatures follow]

                                       L-7

<PAGE>   167

         IN WITNESS WHEREOF, the Subsidiary has duly executed and delivered this
Assumption Letter as of the date and year first above written.

                                       [NAME  OF  BORROWING SUBSIDIARY]

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

Agreed and Consented to:

SENSORMATIC ELECTRONICS CORPORATION

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

                                       L-8

<PAGE>   168

                                   EXHIBIT "A"
                 LOAN/CREDIT RELATED MONEY TRANSFER INSTRUCTION

To:      Bank of America, N.A., as Administrative Agent
         (the "Administrative Agent") under the
         Credit Agreement Described Below.

RE:      Credit Agreement dated as of December 9, 1999 (as the same may be
         amended, modified or supplemented, the "Credit Agreement"), among
         Sensormatic Electronics Corporation, (the "Parent"), various Borrowing
         Subsidiaries thereof, Bank of America, N.A., as Administrative Agent,
         and the Lenders named therein. Terms used herein and not otherwise
         defined shall have the meanings assigned thereto in the Credit
         Agreement.

         The Administrative Agent is specifically authorized and directed to act
upon the following standing money transfer instructions with respect to the
proceeds of Loans or other extensions of credit from time to time until receipt
by the Administrative Agent of a specific written revocation of such
instructions by [NAME OF BORROWING SUBSIDIARY] (the "Borrowing Entity"),
provided, however, that the Administrative Agent may otherwise transfer funds as
hereafter directed in writing by the Borrowing Entity in accordance with SECTION
12.2 of the Credit Agreement or based on any telephonic notice made in
accordance with any other applicable provision of the Credit Agreement.

Facility Identification Number(s)
                                 -----------------------------------------------

Customer/Account Name
                     -----------------------------------------------------------

Transfer Funds to
                 ---------------------------------------------------------------

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

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

For Account No.
               -----------------------------------------------------------------

Reference/Attention To
                      ----------------------------------------------------------

Authorized Officer (Customer Representative)     Date
                                                     ---------------------------

-------------------------------------------          --------------------------
(Please Print)                                              (Signature)

Bank Officer Name                                Date
                                                     ---------------------------

-------------------------------------------          ---------------------------
(Please Print)                                               (Signature)

    (DELIVER COMPLETED FORM TO CREDIT SUPPORT STAFF FOR IMMEDIATE PROCESSING)

                                       L-9

<PAGE>   169

                                    EXHIBIT M

                           Form of Amendment Agreement
                              Amendment No. ___ to

                                Credit Agreement

         THIS AMENDMENT AGREEMENT is made and entered into this _____ day of
________, ____, by and among SENSORMATIC ELECTRONICS CORPORATION, a Florida
corporation (herein called the "Parent"), the BORROWING SUBSIDIARIES parties
hereto, if any (the Parent and each Borrowing Subsidiary is individually
referred to as a "Borrower" and collectively as the "Borrowers"), BANK OF
AMERICA, N.A. (the "Administrative Agent"), as Administrative Agent for the
lenders (the "Lenders") party to a Credit Agreement dated December 9, 1999 among
such Lenders, the Parent and the Administrative Agent, as amended (the
"Agreement") and a new Lender party to this Amendment Agreement (the "New
Lender").

                              W I T N E S S E T H:

         WHEREAS, the Parent, the Agent and the Lenders have entered into the
Agreement pursuant to which the Lenders have agreed to make revolving loans to
the Borrowers in the principal amount of $115,000,000 as evidenced by the Notes
(as defined in the Agreement); and

         WHEREAS, the New Lender has agreed to provide to the Borrowers Loans
and participations in Letters of Credit of up to $__________ thereby increasing
the Total Revolving Credit Commitment to $___________ and the parties hereto
desire to amend the Agreement in the manner herein set forth effective as of the
date hereof;

         NOW, THEREFORE, the Borrower, the Administrative Agent and the New
Lender do hereby agree as follows:

         1. DEFINITIONS. The term "Agreement" as used herein and in the Loan
Documents (as defined in the Agreement) shall mean the Agreement as hereby
amended and modified. Unless the context otherwise requires, all terms used
herein without definition shall have the definition provided therefor in the
Agreement.

         2. AMENDMENTS. Subject to the conditions hereof, the Agreement is
hereby amended, effective as of the date hereof, by deleting EXHIBIT A and
inserting in lieu thereof EXHIBIT A attached hereto, and the New Lender agrees
by the execution of this Amendment Agreement that it shall be a party to the
Agreement as a "Lender" and shall provide to the Borrower its Revolving Credit
Commitment in the amount set forth in EXHIBIT A attached hereto.

         3. REPRESENTATIONS AND WARRANTIES. Each Borrower hereby certifies that:

                  (a) The representations and warranties made by Borrower in
         ARTICLE VII thereof are true in all material respects on and as of the
         date hereof except that the financial

                                       M-1

<PAGE>   170

         statements referred to in SECTION 7.6(a) shall be those most recently
         furnished to each Lender pursuant to SECTION 8.1(a) and (b);

                  (b) There has been no material adverse change in the
         condition, financial or otherwise, of the Parent and its Subsidiaries
         since the date of the most recent financial reports of the Parent
         received by each Lender under SECTION 7.6(a), or if more recent, those
         received under SECTION 8.1 thereof, other than changes in the ordinary
         course of business, none of which has been a material adverse change;
         and

                  (c) No event has occurred and no condition exists which, upon
         the consummation of the transaction contemplated hereby, constituted a
         Default or an Event of Default on the part of the Borrower under the
         Agreement or the Notes either immediately or with the lapse of time or
         the giving of notice, or both.

         4. CONDITIONS. As a condition to the effectiveness of this Amendment
Agreement, the Borrowers shall deliver, or cause to be delivered to the
Administrative Agent, the following:

                  (a) Four (4) executed counterparts of this Amendment
         Agreement; and

                  (b) A fully-executed Revolving Note and Competitive Bid Note
         payable to the Lender in the amount of Lender's Revolving Credit
         Commitment.

         5. OTHER DOCUMENTS. All instruments and documents incident to the
consummation of the transactions contemplated hereby shall be satisfactory in
form and substance to the Administrative Agent and its counsel; the
Administrative Agent shall have received copies of all additional agreements,
instruments and documents which it may reasonably request in connection
therewith, including evidence of the authority of Borrowers to enter into the
transactions contemplated by this Amendment Agreement, in each case such
documents, when appropriate, to be certified by appropriate corporate or
governmental authorities; and all proceedings of the Borrowers relating to the
matters provided for herein shall be satisfactory to the Administrative Agent
and its counsel.

         6. ENTIRE AGREEMENT. This Amendment Agreement sets forth the entire
understanding and agreement of the parties hereto in relation to the subject
matter hereof and supersedes any prior negotiations and agreements among the
parties relative to such subject matter. No promise, conditions, representation
or warranty, express or implied, not herein set forth shall bind any party
hereto, and no one of them has relied on any such promise, condition,
representation or warranty. Each of the parties hereto acknowledges that, except
as in this Amendment Agreement or otherwise expressly stated, no
representations, warranties or commitments, express or implied, have been made
by any other party to the other. None of the terms of conditions of this
Amendment Agreement may be changed, modified, waived or canceled orally or
otherwise, except by writing, signed by all the parties hereto, specifying such
change, modification, waiver or cancellation of such terms or conditions, or of
any proceeding or succeeding breach thereof.

                                       M-2

<PAGE>   171

         7. FULL FORCE AND EFFECT OF AGREEMENT. Except as hereby specifically
amended, modified or supplemented, the Agreement and all of the other Loan
Documents are hereby confirmed and ratified in all respects and shall remain in
full force and effect according to their respective terms.

                                       M-3

<PAGE>   172

         IN WITNESS WHEREOF, the parties hereto have caused this Amendment
agreement to be duly executed by their duly authorized officers, all as of the
day and year first above written.

                                          SENSORMATIC ELECTRONICS CORPORATION

WITNESS:

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

                                          Title:
----------------------------                    -------------------------------

                                          BORROWING SUBSIDIARY:

                                          --------------------------------------
                                                      [Insert Name]

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

                                       M-4

<PAGE>   173

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

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

                                       M-5

<PAGE>   174

                                          --------------------------------------
                                          [Insert Name of Lender]

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

                                       M-6

<PAGE>   175

                                    EXHIBIT A

                        Applicable Commitment Percentages

<TABLE>
<CAPTION>
                                                                                                 Applicable
                                                     Revolving Credit                            Commitment
Lender                                               Commitment                                  Percentage
------                                               ----------                                  ----------
<S>                                                  <C>                                         <C>
Bank of America, N.A.                                $                                                    %

SunTrust Bank, South Florida, N.A.                   $

Bank One, N.A. (Chicago Main Office)                 $

BankBoston, N.A.                                     $

Dresdner Bank Lateinamerika AG,
Miami Agency                                         $

                                                     $
--------------------------                            ---------                                  --------

                  Total                              $                                           100%
                                                      ---------
</TABLE>

                                       M-7================================================================================

                                CREDIT AGREEMENT

                                 by and between

                  SITEK, INCORPORATED, a Delaware corporation,
           ADVANCED TECHNOLOGY SERVICES, INC., an Arizona corporation

                                       and

                 IMPERIAL BANK, a California banking corporation

                                   Dated as of

                                January 10, 2000

================================================================================
<PAGE>
                                TABLE OF CONTENTS

                                                                            Page
                                                                            ----

RECITALS.......................................................................1

ARTICLE 1    DEFINITION OF TERMS...............................................2
      1.1    Definitions.......................................................2
      1.2    References........................................................8
      1.3    Accounting Terms..................................................8

ARTICLE 2    THE RLC...........................................................9
      2.1    Commitment........................................................9
      2.2    Revolving Line of Credit..........................................9
      2.3    RLC Advances......................................................9
      2.4    RLC Payments......................................................9
      2.5    Principal Prepayments; Excess Balance Payment....................10
      2.6    Method of Payment................................................10
      2.7    Collection of Payment............................................10
      2.8    Conditions.......................................................10
      2.9    Other RLC Advances by Lender.....................................11
      2.10   Assignment.......................................................11
      2.11   Fees.............................................................11

ARTICLE 3    SECURITY.........................................................12
      3.1    Security.........................................................12
      3.2    Security Documents...............................................12

ARTICLE 4    CONDITIONS PRECEDENT.............................................13
      4.1    Initial or Any Subsequent Advance................................13
      4.2    No Event of Default..............................................14
      4.3    No Material Adverse Effect.......................................14
      4.4    Representations and Warranties...................................14

ARTICLE 5    REPRESENTATIONS AND WARRANTIES...................................15
      5.1    Recitals.........................................................15
      5.2    Organization and Good Standing...................................15
      5.3    Authorization and Power..........................................15
      5.4    Security Documents...............................................15
      5.5    No Conflicts or Consents.........................................15
      5.6    No Litigation....................................................15
      5.7    Financial Condition..............................................16
      5.8    Taxes............................................................16
      5.9    No Stock Purchase................................................16

                                       -i-
<PAGE>
      5.10   Advances.........................................................16
      5.11   Enforceable Obligations..........................................16
      5.12   No Default.......................................................16
      5.13   Significant Debt Agreements......................................16
      5.14   ERISA............................................................17
      5.15   Compliance with Law..............................................17
      5.16   Solvent..........................................................17
      5.17   Investment Borrower Act..........................................17
      5.18   Title............................................................17
      5.19   Survival of Representations, Etc.................................17
      5.20   Environmental Matters............................................17
      5.21   Licenses, Tradenames.............................................17

ARTICLE 6    AFFIRMATIVE COVENANTS............................................18
      6.1    Financial Statements, Reports and Documents......................18
      6.2    Maintenance of Existence and Rights; Conduct of Business;
             Management.......................................................19
      6.3    Operations and Properties........................................19
      6.4    Authorizations and Approvals.....................................19
      6.5    Compliance with Law..............................................19
      6.6    Payment of Taxes and Other Indebtedness..........................19
      6.7    Compliance with Significant Debt Agreements
             and Other Agreements.............................................20
      6.8    Compliance with Credit Documents.................................20
      6.9    Notice of Default................................................20
      6.10   Other Notices....................................................20
      6.11   Books and Records; Access........................................20
      6.12   ERISA Compliance.................................................20
      6.13   Further Assurances...............................................20
      6.14   Insurance........................................................21
      6.15   Depository Accounts..............................................21
      6.16   Equipment Located in United Kingdom..............................22

ARTICLE 7    NEGATIVE COVENANTS...............................................23
      7.1    No Debt..........................................................23
      7.2    Liens............................................................23
      7.3    Existence........................................................23
      7.4    Amendments to Organizational Documents...........................23
      7.5    Margin Stock.....................................................23
      7.6    Distributions....................................................24
      7.7    Indebtedness; Payments...........................................24
      7.8    Transfer Collateral..............................................24
      7.9    Merger; Sale of Assets...........................................24
      7.10   Financial Covenants..............................................24

                                      -ii-
<PAGE>
ARTICLE 8    EVENTS OF DEFAULT................................................25
      8.1    Events of Default................................................25
      8.2    Remedies Upon Event of Default...................................27
      8.3    Performance by Lender............................................28

ARTICLE 9    MISCELLANEOUS....................................................29
      9.1    Modification.....................................................29
      9.2    Waiver...........................................................29
      9.3    Payment of Expenses..............................................29
      9.4    Notices..........................................................29
      9.5    Governing Law; Jurisdiction, Venue; Waiver of Jury Trial.........30
      9.6    Reference Provision..............................................31
      9.7    Invalid Provisions...............................................32
      9.8    Binding Effect...................................................32
      9.9    Entirety.........................................................32
      9.10   Headings.........................................................32
      9.11   Survival.........................................................32
      9.12   No Third Party Beneficiary.......................................32
      9.13   Time.............................................................33
      9.14   Schedules and Exhibits Incorporated..............................33
      9.15   Counterparts.....................................................33
      9.16   Equipment Located in United Kingdom..............................ii

EXHIBIT "A"  Form of Advance Notice
EXHIBIT "B"  Form of Compliance Certificate
EXHIBIT "C"  Borrowing Base Certificate
EXHIBIT "D"  Subordination Agreement
EXHIBIT "E"  Pending Litigation

                                      -iii-
<PAGE>
                                CREDIT AGREEMENT

     BY THIS CREDIT  AGREEMENT  (together with any amendments or  modifications,
the "Credit  Agreement"),  entered into as of this 10th day of January,  2000 by
and between SITEK,  INCORPORATED,  a Delaware  corporation  ("SITEK"),  ADVANCED
TECHNOLOGY  SERVICES,  INC., an Arizona corporation  ("ATSI";  and together with
SITEK, the "Borrower"), and IMPERIAL BANK, a California banking corporation (the
"Lender"),  in  consideration  of the mutual promises  herein  contained and for
other valuable consideration, the parties hereto do hereby agree as follows:

                                    RECITALS

     A. Borrower has applied to Lender for a revolving  line of credit  facility
(the  "RLC")  in  the  principal  amount  of  TWO  MILLION  AND  NO/100  DOLLARS
($2,000,000.00)  for the purpose of funding  Borrower's  working  capital  needs
related to trading cycles.

     B. As a condition for extending such financial  accommodations,  Lender has
required that Borrower enter into this Credit Agreement,  establishing the terms
and conditions thereof.
<PAGE>
                                    ARTICLE 1

                               DEFINITION OF TERMS

     1.1  DEFINITIONS.  For the  purposes of this Credit  Agreement,  unless the
context  otherwise  requires,  the  following  terms  shall have the  respective
meanings assigned to them in this Article 1 or in the Section hereof referred to
below:

          "ACCOUNTS  RECEIVABLE" means, at any time, the accounts  receivable of
ATSI.

          "ADVANCE" means an RLC Advance.

          "AFFILIATE"  of  any  Person  means  any  Person  which,  directly  or
indirectly,  controls or is controlled by such Person.  For the purposes of this
definition,   "control"  (including,   with  correlative   meanings,   the  term
"controlled by"), as used with respect to any Person, shall mean the possession,
directly or  indirectly,  of the power to direct or cause the  direction  of the
management and policies of such Person, whether by contract or otherwise.

          "APPROVED  CUSTOMERS"  means  the  following  customers  of  ATSI  (as
amended, from time to time, by Lender in its reasonable  discretion):  Phillips,
Motorola,   National  Semiconductor,   Samsung,  Intel,  Fujitsu,   Siemens,  ST
Microelectronics, Sony, AMCC, LSI Logic, Texas Instruments, On Semiconductor and
TSMC.

          "ATSI": See the Preamble hereto.

          "AUTHORIZED  OFFICER"  means one or more  officers  of  Borrower  duly
authorized  (and so certified to Lender by the  corporate  secretary of Borrower
pursuant  to a  certificate  of  authority  and  incumbency  from  time  to time
satisfactory  to Lender in the  exercise  of  Lender's  reasonable  discretion),
acting alone, to request  Advances under the provisions of this Credit Agreement
and execute and deliver documents, instruments,  agreements, reports, statements
and certificates in connection herewith.

          "BANKING  DAY" means a day of the year on which banks are not required
or authorized to close in Inglewood, California and Phoenix, Arizona.

          "BORROWER": See the Preamble hereto.

          "BORROWING  BASE" means the sum of (i) the  Eligible  Accounts  Amount
plus (ii) the Eligible Inventory Amount.

          "BORROWING BASE CERTIFICATE" means a certificate  substantially in the
form attached hereto as Exhibit "C".

                                       -2-
<PAGE>
          "CHANGE IN CONTROL" means the occurrence or existence of the following
events or conditions  without the prior written consent of Lender,  if different
than the state of affairs as of the Closing Date:

               (a) the  acquisition  by any Person or two or more Persons acting
          in concert of Control of the Borrower.

          "CLOSING DATE" means the date of delivery of this Credit Agreement.

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

          "COLLATERAL" means all property subject to the Security Documents.

          "CONTROL"  when used  with  respect  to any  Person  means the  power,
directly  or  indirectly,  to direct the  management  policies  of such  Person,
whether  through the ownership of voting  securities,  by contract or otherwise;
and the terms  "controlling" and "controlled"  have meanings  correlative to the
foregoing.

          "CONTROLLED GROUP" means,  severally and collectively,  the members of
the group  controlling,  controlled  by and/or in common  control  of  Borrower,
within the meaning of Section 4001(b) of ERISA.

          "CREDIT AGREEMENT": See the Preamble hereto.

          "CREDIT  DOCUMENTS" means this Credit  Agreement,  the Note (including
any renewals, extensions and refundings thereof), the Security Documents and any
written  agreements,  certificates or documents (and with respect to this Credit
Agreement and such other written  agreements  and  documents,  any amendments or
supplements thereto or modifications  thereof) executed or delivered pursuant to
the terms of this Credit Agreement.

          "DEFAULT  RATE" means at any time five percent (5%) per annum over the
then applicable interest rate.

          "DOLLARS"  and the sign "$" mean lawful  currency of the United States
of America.

          "EBITDA"  means Net Income,  plus the sum of all amounts  deducted for
interest expense, tax expense,  depreciation and amortization, in computing such
Net Income.

          "EBITDA RATIO" means EBITDA divided by Borrower's interest expense.

          "ELIGIBLE   ACCOUNTS"   means  those   accounts   receivable  of  ATSI
attributable  to the  Approved  Customers  and as Lender in its sole  discretion
shall  determine are eligible  from time to time.  Eligible  Accounts  shall not
include any of the following:

                                       -3-
<PAGE>
               (a) Account  balances over ninety (90) calendar days from the due
          date; provided,  however,  that in no event shall the due date be more
          than thirty (30) days after the invoice date.

               (b)  Accounts  with  respect  to which the  account  debtor is an
          officer, director,  shareholder,  employee, subsidiary or affiliate of
          Borrower.

               (c) [Intentionally Deleted.]

               (d) [Intentionally Deleted.]

               (e) Unless the account debtor is an Approved  Customer,  accounts
          with  respect  to  international  transactions  unless  insured  by an
          insurance  company  acceptable  to  Lender in its sole  discretion  or
          covered by letters of credit issued or confirmed by a bank  acceptable
          to Lender or unless  otherwise  acceptable to Lender,  in its sole and
          absolute discretion.

               (f) [Intentionally Deleted.]

               (g)  Accounts  where the account  debtor is a seller to Borrower,
          whereby a  potential  offset  (contra)  exists,  to the  extent of the
          offset.

               (h) Consignment or guaranteed sales.

               (i) [Intentionally Deleted.]

               (j) Contracts receivable.

               (k) Progress billings.

               (l) Accounts with respect to  installment  sales to the extent of
          amounts not yet due and payable or, if due and payable,  balances that
          are over sixty (60) calendar days from their due date.

          "ELIGIBLE  ACCOUNTS  AMOUNT"  means an  amount  equal to  seventy-five
percent (75.0%) of the Eligible Accounts.

          "ELIGIBLE  INVENTORY"  means that  inventory of ATSI that  consists of
finished goods and that is located in the United  States,  all of which shall be
valued at the lower of actual cost or market value in accordance with GAAP.

                                       -4-
<PAGE>
          "ELIGIBLE  INVENTORY  AMOUNT"  means an amount equal to fifty  percent
(50.0%) of the Eligible Inventory.

          "ERISA" means the Employee  Retirement Income Security Act of 1974, as
amended,  together  with all final and  permanent  regulations  issued  pursuant
thereto.  References  herein to sections and  subsections of ERISA are deemed to
refer to any successor or substitute provisions therefor.

          "EVENT OF DEFAULT": See Section 8.1.

          "EXCHANGE ACT" means the Securities Exchange Act of 1934.

          "FINANCIAL COVENANTS": See Section 7.10 hereof.

          "GAAP"  means  those  generally  accepted  accounting  principles  and
practices  which are  recognized as such by the American  Institute of Certified
Public  Accountants  acting  through its Accounting  Principles  Board or by the
Financial  Accounting  Standards  Board or through other  appropriate  boards or
committees thereof and which are consistently  applied for all periods after the
date hereof so as to properly reflect the financial  condition,  and the results
of operations  and changes in the  financial  position,  of Borrower,  including
without limitation  accounting rules promulgated  pursuant to Regulations SX and
SK, except that any accounting  principle or practice  required to be changed by
the said Accounting Principles Board or Financial Accounting Standards Board (or
other appropriate board or committee of the said Boards) in order to continue as
a generally accepted accounting principle or practice may be so changed.

          "GOVERNMENTAL  AUTHORITY"  means  any  government  (or  any  political
subdivision  or  jurisdiction   thereof),   court,   bureau,   agency  or  other
governmental authority having jurisdiction over Borrower or any of its business,
operations or properties.

          "INDEBTEDNESS"  of a  Person  means  each  of the  following  (without
duplication):  (a) obligations of that Person to any other Person for payment of
borrowed  money,  (b) capital lease  obligations,  (c) notes and drafts drawn or
accepted by that Person payable to any other Person, whether or not representing
obligations  for borrowed  money (but without  duplication of  indebtedness  for
borrowed  money),  (d) any  obligation  for the  purchase  price of property the
payment of which is deferred  for more than one year or  evidenced  by a note or
equivalent instrument,  (e) guarantees of Indebtedness of third parties, and (f)
a recourse or nonrecourse payment obligation of any other Person that is secured
by a Lien on any  property  of the first  Person,  whether or not assumed by the
first  Person,  up to the fair market value (from time to time) of such property
(absent  manifest  evidence  to the  contrary,  the  fair  market  value of such
property  shall be the  amount  determined  under GAAP for  financial  reporting
purposes).

          "LENDER": See the Preamble hereto.

                                       -5-
<PAGE>
          "LIEN" means any lien, mortgage,  security interest, tax lien, pledge,
encumbrance,  conditional  sale or title  retention  arrangement,  or any  other
interest in property  designed to secure the repayment of  Indebtedness  whether
arising by agreement or under any statute or law, or otherwise.

          "LOAN" or "Loans" means the RLC.

          "LOAN FEE": See Section 2.8 hereto.

          "MATERIAL  ADVERSE  EFFECT" means any  circumstance or event which (i)
has any  material  adverse  effect upon the  validity or  enforceability  of any
Credit Document,  (ii) materially impairs the ability of Borrower to fulfill its
obligations under the Credit  Documents,  or (iii) causes an Event of Default or
any event which,  with notice or lapse of time or both, would become an Event of
Default.

          "NET  INCOME"  means,  for any period,  the net income of Borrower for
such period in accordance with GAAP, determined on a consolidated basis.

          "NOTE" means that Revolving  Promissory  Note of even date herewith in
the amount of the RLC, executed by Borrower and delivered  pursuant to the terms
of this Credit agreement, together with any renewals, extensions,  modifications
or replacements thereof.

          "OBLIGATION"  means all present and future  indebtedness,  obligations
and liabilities of Borrower to Lender, and all renewals and extensions  thereof,
or any part thereof, arising pursuant to this Credit Agreement or represented by
the  Note,  including  without  limitation  the Loan and all  interest  accruing
thereon,  and attorneys' fees incurred in the enforcement or collection thereof,
regardless of whether such indebtedness, obligations and liabilities are direct,
indirect, fixed, contingent,  joint, several or joint and several; together with
all indebtedness,  obligations and liabilities of Borrower  evidenced or arising
pursuant to any of the other Credit  Documents,  and all renewals and extensions
thereof, or part thereof.

          "PAYMENT  DATE"  with  respect  to a Loan  means the tenth day of each
month,  commencing  the  tenth day of the first  month  after the first  Advance
applicable  to such Loan shall have been made,  provided that if any such day is
not a Banking Day, then such Payment Date shall be the next  successive  Banking
Day.

          "PBGC"  means  the  Pension  Benefit  Guaranty  Corporation,  and  any
successor  to  all  or  substantially   all  of  the  Pension  Benefit  Guaranty
Corporation's functions under ERISA.

          "PERMITTED LIENS" means:

               (a) Liens in Lender's favor.

               (b) Liens for taxes not delinquent.

                                       -6-
<PAGE>
               (c)  Liens  resulting  from or  hereafter  arising  from  the TLD
          Funding Credit Facility.

               (d) Liens  resulting  from  purchase  money  financing  as to the
          personal property so financed and any sales proceeds.

          "PERSON"  includes an individual,  a corporation,  a joint venture,  a
partnership,   a  trust,  a  limited  liability   Borrower,   an  unincorporated
organization or a government or any agency or political subdivision thereof.

          "PLAN" means an employee defined benefit plan or other plan maintained
by  Borrower  for  employees  of Borrower  and covered by Title IV of ERISA,  or
subject to the minimum funding standards under Section 412 of the Code.

          "PLEDGE AGREEMENT": See Section 3.1(b) hereof.

          "PRIME RATE" means the interest rate per annum  publicly  announced by
Lender,  or its successors,  as its "prime rate" as in effect from time to time.
Borrower  acknowledges that the Prime Rate is not necessarily the best or lowest
rate  offered by Lender and Lender may lend to its  customers  at rates that are
at, above or below its Prime Rate.

          "QUARTERLY  END DATE" means each March 31, June 30,  September  30 and
December 31.

          "REGULATION  U"  means  Regulation  U  promulgated  by  the  Board  of
Governors  of the  Federal  Reserve  System,  12 C.F.R.  Part 221,  or any other
regulation hereafter promulgated by said Board to replace the prior Regulation U
and having substantially the same function.

          "REPORTABLE  EVENT"  means  any  "reportable  event" as  described  in
Section  4043(b)  of ERISA  with  respect  to which the  thirty  (30) day notice
requirement has not been waived by the PBGC.

          "RLC" means that  revolving line of credit made available by Lender to
Borrower pursuant to Article 2 hereof.

          "RLC ADVANCE" means a disbursement of the proceeds of the RLC.

          "RLC COMMITMENT" means Two Million And No/100 Dollars ($2,000,000.00).

          "RLC FEE": See Section 2.11 hereof.

          "RLC MATURITY DATE" means January 9, 2001.

          "SECURITY AGREEMENT": See Section 3.1(a) hereof.

                                       -7-
<PAGE>
          "SECURITY DOCUMENTS": See Section 3.2 hereof.

          "SIGNIFICANT  DEBT  AGREEMENT"  means all documents,  instruments  and
agreements   executed  by  Borrower,   evidencing,   securing  or  ensuring  any
Indebtedness of Borrower or any guaranty in excess of $100,000.00 in outstanding
principal (or principal equivalent) amount.

          "SITEK": See the Preamble hereto.

          "SUBORDINATED DEBT" means Indebtedness of Borrower subordinated to the
payment of the Obligation pursuant to written agreements acceptable to Lender.

          "SUBORDINATION    AGREEMENT"    means   a   Subordination    Agreement
substantially in form attached hereto as Exhibit "D".

          "SUBSIDIARY"  means  any  corporation  of which  more  than 50% of the
outstanding  shares of capital stock having  general voting power under ordinary
circumstances to elect a majority of the board of directors of such corporation,
irrespective  of whether or not at the time stock of any other  class or classes
shall  have or  might  have  voting  power by  reason  of the  happening  of any
contingency, is at the time directly or indirectly owned by the Borrower, by the
Borrower  and  one  or  more  other  Subsidiaries,  or  by  one  or  more  other
Subsidiaries.

          "TLD FUNDING" means TLD Funding Group, Inc., an Arizona corporation.

          "TLD  FUNDING  CREDIT  FACILITY"  means that certain  credit  facility
provided to Borrower by TLD Funding in an amount equal to $1,000,000.00  for the
purchase of equipment inventory.

          "VARIABLE  RATE"  means the rate per annum equal to (i) the Prime Rate
per annum as in effect from time to time,  plus (ii) four  percent  (4.0%).  The
Variable Rate will change on each day that the "Prime Rate" changes.

     1.2 REFERENCES.  Capitalized terms shall be equally  applicable to both the
singular  and the  plural  forms of the terms  therein  defined.  References  to
"Credit Agreement," "this Agreement," "herein," "hereof,"  "hereunder," or other
like words mean this  Credit  Agreement  as amended,  supplemented,  restated or
otherwise modified and in effect from time to time.

     1.3 ACCOUNTING TERMS.  Except as expressly provided to the contrary herein,
all  accounting  terms shall be interpreted  and all  accounting  determinations
shall be made in accordance with GAAP, except as otherwise specifically provided
for  herein.  To the  extent  any  change in GAAP  affects  any  computation  or
determination  required  to be made  pursuant  to this  Credit  Agreement,  such
computation  or  determination  shall be made as if such  change in GAAP had not
occurred  unless  Borrower and Lender agree in writing on an  adjustment to such
computation or determination to account for such change in GAAP.

                                       -8-
<PAGE>
                                    ARTICLE 2

                                     THE RLC

     2.1 COMMITMENT.  Subject to the conditions herein set forth,  Lender agrees
to make the RLC available to or for the benefit of Borrower, and Borrower agrees
to draw upon the RLC,  in the  manner and upon the terms and  conditions  herein
expressed, amounts that shall not exceed the lesser of the RLC Commitment or the
Borrowing Base.

     2.2 REVOLVING LINE OF CREDIT.

          (a)  Subject  to the terms  and  conditions  set forth in this  Credit
     Agreement,  the RLC shall be a revolving line of credit,  against which RLC
     Advances may be made to  Borrower,  repaid by Borrower and new RLC Advances
     made to Borrower, as Borrower may request, provided that (i) no RLC Advance
     shall be made if an  Event of  Default  shall  be  continuing,  (ii) no RLC
     Advance shall be made that would cause the outstanding principal balance of
     the RLC to exceed the lesser of the RLC  Commitment or the Borrowing  Base,
     and (iii) no RLC Advance shall be made on or after the RLC Maturity Date.

          (b) The RLC shall be evidenced by the Note.

     2.3 RLC  ADVANCES.  An RLC Advance shall be made by Lender to Borrower upon
written  notice  from  Borrower in  substantially  the form  attached  hereto as
Exhibit "A" hereof from an  Authorized  Officer  (which notice  Borrower  hereby
authorizes Lender to accept by telefacsimile) and shall include the date and the
amount of the requested RLC Advance. If such notice is received by Lender before
noon  (Inglewood,  California  local time) on any Banking Day,  Lender agrees to
make such RLC Advance no later than the next Banking Day.

     2.4 RLC PAYMENTS. The RLC shall bear interest and be payable to Lender upon
the following terms and conditions:

          (a) Interest on an RLC Advance shall accrue at the Variable Rate.

          (b) All accrued interest on an RLC Advance shall be due and payable on
     each Payment Date.

          (c) If any payment of interest  and/or  principal  is not  received by
     Lender when such payment is due, then in addition to the remedies conferred
     upon the Lender under the Credit  Documents,  a late charge of five percent
     (5%) of the amount of the  installment  due and unpaid will be added to the
     delinquent  amount to compensate the Lender for the expense of handling the
     delinquency  for any payment  past due,  regardless  of any notice and cure
     period.

                                       -9-
<PAGE>
          (d) Upon the  occurrence  of an Event of Default  and after  maturity,
     including  maturity upon acceleration,  the unpaid principal  balance,  all
     accrued and unpaid interest and all other amounts  payable  hereunder shall
     bear interest at the Default Rate.

          (e) The unpaid principal balance,  all accrued and unpaid interest and
     all other amounts  payable  hereunder  with respect to the RLC shall be due
     and payable in full on the RLC Maturity Date.

     2.5 PRINCIPAL PREPAYMENTS; EXCESS BALANCE PAYMENT.

          (a) Borrower may prepay the outstanding  principal  balance of the RLC
     in whole or in part at any time  prior  to the RLC  Maturity  Date  without
     penalty or premium as stated in such notice by Borrower, provided that such
     prepayment also includes accrued interest to the date of such prepayment on
     the principal amount prepaid.

          (b) There  shall be due and  payable  from  Borrower  to  Lender,  and
     Borrower shall repay to Lender, within five (5) days of written demand from
     Lender,  from time to time, any amount by which the  outstanding  principal
     balance  of the  RLC  exceeds  the  lesser  of the  RLC  Commitment  or the
     Borrowing Base.

     2.6 METHOD OF PAYMENT.  All payments of principal  of, and interest on, the
Note  shall be made to Lender  before  2:00 p.m.  (Inglewood,  California  local
time), in immediately  available  funds.  All payments made on the Note shall be
credited,  to the extent of the amount  thereof,  in the following  manner:  (i)
first,  to the payment of costs,  fees or other  charges  incurred in connection
with the RLC;  (ii) second,  to the payment of accrued  interest on the RLC; and
(iii) third, to the reduction of the principal balance of the RLC.

     2.7  COLLECTION  OF  PAYMENT.  Borrower  authorizes  Lender to collect  all
interest,  fees,  costs  and/or  expenses  due under this  Agreement by charging
Borrower's  demand  deposit  account  with Lender for the full  amount  thereof.
Should there be insufficient funds in any such demand deposit account to pay all
such sums when due, the full amount of such deficiency  shall be immediately due
and payable by Borrower.

     2.8  CONDITIONS.  Lender shall have no  obligation  to make any RLC Advance
unless and until all of the conditions and requirements of this Credit Agreement
are fully  satisfied.  However,  Lender in its sole and absolute  discretion may
elect to make one or more RLC Advances prior to full satisfaction of one or more
such conditions and/or requirements. Notwithstanding that such an RLC Advance or
RLC Advances are made, such unsatisfied conditions and/or requirements shall not
be waived or released thereby. Borrower shall be and continue to be obligated to
fully satisfy such  conditions  and  requirements,  and Lender,  at any time, in
Lender's sole and absolute  discretion,  may stop making RLC Advances  until all
conditions and requirements are fully satisfied.

                                      -10-
<PAGE>
     2.9 OTHER RLC ADVANCES BY LENDER.  Lender,  after giving  fifteen (15) days
prior written  notice to Borrower to allow for corrective  action,  from time to
time, may make RLC Advances in any amount in payment of (i) insurance  premiums,
taxes,  assessments,  liens or encumbrances existing against property encumbered
by the Security Documents, (ii) interest accrued and payable upon the RLC, (iii)
any charges and expenses that are the  obligation of Borrower  under this Credit
Agreement or any Security Document, and (iv) any charges or matters necessary to
preserve the property  encumbered by the Security Documents or to cure any still
existing Event of Default.

     2.10  ASSIGNMENT.  Borrower shall have no right to the proceeds of the Loan
other  than to have  the  same  disbursed  by  Lender  in  accordance  with  the
disbursement  provisions  contained in this Credit Agreement.  Any assignment or
transfer,  voluntary  or  involuntary,  of this  Credit  Agreement  or any right
hereunder  shall not be binding  upon or in any way affect  Lender  without  its
written consent.

     2.11 FEES. In connection with the Loan, Borrower agrees to pay to Lender on
the Closing Date a non-refundable  fee in the amount of one and one-half percent
(1.50%) of the RLC Commitment (the "RLC Fee").

                                      -11-
<PAGE>
                                    ARTICLE 3

                                    SECURITY

     3.1 SECURITY. So long as any Loan is outstanding, Borrower shall cause such
Loan and Borrower's obligations under this Credit Agreement to be secured at all
times by the following:

          (a)  A  valid  and  effective   security   agreement   (the  "Security
     Agreement"),  duly  executed  and  delivered  by or on behalf of  Borrower,
     granting  Lender a valid and  enforceable  security  interest in all of its
     personal  property as described  therein,  subject to no prior Liens except
     for Permitted Liens.

          (b) A  pledge  and  irrevocable  proxy  security  agreement  from  the
     Borrower (the "Pledge Agreement"),  assigning,  transferring,  pledging and
     delivering  to Lender and granting to Lender a security  interest in all of
     ATSI's common stock.

     3.2 SECURITY  DOCUMENTS.  All of the  documents  required by this Article 3
shall be in form satisfactory to Lender and Lender's counsel, and, together with
any  Financing  Statements  for filing  and/or  recording,  and any other  items
required  by Lender  to fully  perfect  and  effectuate  the liens and  security
interests  of Lender  contemplated  by the Security  Agreement,  and this Credit
Agreement,  may  heretofore  or  hereinafter  be  referred  to as the  "Security
Documents."

                                      -12-
<PAGE>
                                    ARTICLE 4

                              CONDITIONS PRECEDENT

     The  obligation of Lender to make any Loan and to make each and any Advance
hereunder is subject to the full prior satisfaction at each such time of each of
the following conditions precedent:

     4.1  INITIAL OR ANY  SUBSEQUENT  ADVANCE.  Prior to its making the  initial
Advance or any subsequent Advance, Lender shall have received the following each
in form and substance satisfactory to Lender:

          (a) THIS CREDIT AGREEMENT.  This Credit  Agreement,  duly executed and
     delivered to Lender by Borrower.

          (b) THE NOTE. The Note,  duly  executed,  drawn to the order of Lender
     and otherwise as provided in Article 2 hereof.

          (c)  ORGANIZATIONAL  DOCUMENTS.  A copy of the current  organizational
     documents of  Borrower,  including  all  amendments  thereto,  certified as
     current  and  complete  by the  appropriate  authority  of the state of its
     formation,  together  with  evidence  of its good  standing in its state of
     formation.

          (d) MEMBER  AUTHORIZATION.  An  authorization  signed by its  members,
     authorizing  the RLC, the  execution,  delivery,  and  performance  of this
     Credit  Agreement,  the Note,  the Credit  Documents,  and all  advances of
     credit hereunder.

          (e) SECURITY  AGREEMENT.  The Security  Agreement,  duly  executed and
     delivered to Lender by Borrower.

          (f)  PLEDGE  AGREEMENT.  The  Pledge  Agreement,   duly  executed  and
     delivered to Lender by Borrower.

          (g) LENDER'S  FEES AND COSTS.  Payment of the RLC Fee in the amount of
     $30,000.00 plus Lender's other fees and costs.

          (h) COMPLIANCE CERTIFICATE.  A Compliance Certificate substantially in
     the form of Exhibit "B" attached  hereto,  indicating  that  Borrower is in
     compliance with the Financial Covenants as of September 30, 1999.

          (i)  FINANCING  STATEMENTS.  Financing  Statements,  duly executed and
     delivered to Lender by Borrower.

                                      -13-
<PAGE>
          (j)  ACCOUNTS  RECEIVABLE.   A  listing  and  aging  of  the  accounts
     receivable of Borrower as of November 30, 1999.

          (k) [INTENTIONALLY DELETED.]

          (l) BORROWER'S FINANCIAL  STATEMENTS.  Borrower's 1999 fiscal year end
     financial  statements  audited by a certified public accountant  reasonably
     acceptable to Lender.

          (m) ADDITIONAL  INFORMATION.  Such other  information and documents as
     may reasonably be required by Lender or Lender's counsel.

     4.2 NO EVENT OF DEFAULT.  No Event of Default known to Borrower  shall have
occurred and be continuing, or result from Lender's making of any Loan.

     4.3 NO MATERIAL ADVERSE EFFECT. Since the date of the most recent financial
statements provided to Lender by Borrower,  no change shall have occurred in the
business or financial  condition of Borrower that could have a Material  Adverse
Effect.

     4.4  REPRESENTATIONS  AND WARRANTIES.  The  representations  and warranties
contained  in  Article  5  hereof  shall  be true and  correct  in all  material
respects, with the same force and effect as though made on and as of the Closing
Date  (other than those of such  representations  which by their  express  terms
speak to a date prior to that date, which representations shall, in all material
respects, be true and correct as of such respective date).

                                      -14-
<PAGE>
                                    ARTICLE 5

                         REPRESENTATIONS AND WARRANTIES

     To induce  Lender to make the Loans,  Borrower  represents  and warrants to
Lender that:

     5.1  RECITALS.  The recitals  and  statements  of intent  appearing in this
Credit Agreement are true and correct.

     5.2 ORGANIZATION AND GOOD STANDING. It is duly organized,  validly existing
and in good standing in all states  and/or  countries in which the nature of its
business and property makes such qualifications necessary or appropriate. It has
the legal power and authority to own its  properties  and assets and to transact
the  business in which it is engaged and is or will be qualified in those states
and/or countries  wherein the nature of its proposed  business and property will
make such qualifications necessary or appropriate in the future.

     5.3  AUTHORIZATION  AND POWER. It has the power and requisite  authority to
execute,  deliver and  perform  this  Credit  Agreement,  the Note and the other
Credit  Documents to be executed by it; it is duly  authorized to, and has taken
all action,  corporate or  otherwise,  necessary  to  authorize it to,  execute,
deliver  and  perform  this  Credit  Agreement,  the Note and such other  Credit
Documents and is and will continue to be duly  authorized to perform this Credit
Agreement, the Note and such other Credit Documents.

     5.4 SECURITY  DOCUMENTS.  The liens,  security  interests  and  assignments
created by the Security  Documents will, when granted,  be valid,  effective and
enforceable liens, security interests and assignments,  except to the extent (if
any) otherwise agreed in writing by Lender.

     5.5 NO CONFLICTS OR CONSENTS.  Neither the  execution  and delivery of this
Credit Agreement, the Note or the other Credit Documents to which it is a party,
nor the consummation of any of the transactions herein or therein  contemplated,
nor  compliance  with the  terms  and  provisions  hereof  or with the terms and
provisions  thereof,  (a) will  materially  contravene or conflict with: (i) any
provision  of law,  statute  or  regulation  to  which it is  subject,  (ii) any
judgment, license, order or permit applicable to it, (iii) any indenture, credit
agreement, mortgage, deed of trust, or other agreement or instrument to which it
is a party or by which it may be bound,  or to which it may be  subject,  or (b)
will  violate  any  provision  of  its  organizational  documents.  No  consent,
approval, authorization or order of any court or Governmental Authority or other
Person is required in  connection  with the  execution and delivery by it of the
Credit  Documents  or to  consummate  the  transactions  contemplated  hereby or
thereby, or if required,  such consent,  approval,  authorization or order shall
have been obtained.

     5.6 NO  LITIGATION.  Except for those  matters  disclosed  in  Exhibit  "E"
attached hereto and by this reference incorporated herein, there are no actions,
suits or legal, equitable, arbitration or administrative proceedings pending, or
to its actual  knowledge  overtly  threatened,  against  Borrower that would, if
adversely determined, have a Material Adverse Effect.

                                      -15-
<PAGE>
     5.7  FINANCIAL  CONDITION.  It  has  delivered  to  Lender  copies  of  the
Borrower's most recent financial statements.  Such financial statements,  in all
material  respects,  fairly and  accurately  present the  financial  position of
Borrower as of such date, have been prepared in accordance with GAAP and neither
contain  any untrue  statement  of a material  fact nor fail to state a material
fact required in order to make such financial  statement not  misleading.  Since
the date thereof,  Borrower has not discovered any  obligations,  liabilities or
indebtedness  (including  contingent and indirect liabilities and obligations or
unusual  forward or long-term  commitments)  which in the aggregate are material
and adverse to the  financial  position or business of Borrower that should have
been but were not reflected in such  financial  statements.  No changes having a
Material Adverse Effect have occurred in the financial  condition or business of
Borrower since the date of such financial statements.

     5.8 TAXES. It has filed or caused to be filed all returns and reports which
are required to be filed by any jurisdiction, and has paid or made provision for
the  payment  of all  taxes,  assessments,  fees or other  governmental  charges
imposed upon its  properties,  income or franchises,  as to which the failure to
file or pay would have a Material  Adverse  Effect,  except such  assessments or
taxes,  if  any,  which  are  being  contested  in  good  faith  by  appropriate
proceedings.

     5.9  NO  STOCK  PURCHASE.   No  part  of  the  proceeds  of  any  financial
accommodation  made by Lender in connection  with this Credit  Agreement will be
used to purchase or carry "margin  stock," as that term is defined in Regulation
U, or to extend  credit to others for the purpose of purchasing or carrying such
margin stock.

     5.10  ADVANCES.  Each  request for an Advance or for the  extension  of any
financial  accommodation  by Lender  whatsoever  shall constitute an affirmation
that the representations and warranties contained herein are true and correct as
of the time of such request.  All  representations  and  warranties  made herein
shall survive the execution of this Credit  Agreement,  all advances of proceeds
of the  Loans  and  the  execution  and  delivery  of all  other  documents  and
instruments in connection with the Loans and/or this Credit  Agreement,  so long
as Lender has any  commitment  to lend  hereunder  and until the Loans have been
paid in full and all of Borrower's obligations under this Credit Agreement,  the
Note and all Security Documents have been fully discharged. Any investigation at
any time made by or on behalf of Lender  shall not  diminish  Lender's  right to
rely on the representations and warranties herein.

     5.11 ENFORCEABLE OBLIGATIONS. This Credit Agreement, the Note and the other
Credit  Documents  are the legal,  valid and binding  obligations  of  Borrower,
enforceable  against Borrower in accordance with their respective terms,  except
as limited by  bankruptcy,  insolvency or other laws or equitable  principles of
general application relating to the enforcement of creditors' rights.

     5.12 NO DEFAULT.  No event or condition has occurred and is continuing that
constitutes an Event of Default.

                                      -16-
<PAGE>
     5.13  SIGNIFICANT  DEBT  AGREEMENTS.  It is not in default in any  material
respect under any Significant Debt Agreement.

     5.14 ERISA.  (a) No Reportable  Event has occurred and is  continuing  with
respect to any Plan;  (b) PBGC has not  instituted  proceedings to terminate any
Plan;  (c) neither the Borrower,  any member of the  Controlled  Group,  nor any
duly-appointed  administrator  of a Plan (i) has incurred any  liability to PBGC
with  respect to any Plan other than for premiums not yet due or payable or (ii)
has  instituted or intends to institute  proceedings to terminate any Plan under
Section  4041 or  4041A  of  ERISA;  and (d)  each  Plan of  Borrower  has  been
maintained and funded in all material  respects in accordance with its terms and
in all material  respects in accordance with all provisions of ERISA  applicable
thereto. Neither the Borrower nor any of its Subsidiaries participates in, or is
required  to make  contributions  to, any  Multi-employer  Plan (as that term is
defined in Section 3(37) of ERISA).

     5.15  COMPLIANCE  WITH LAW. It is in substantial  compliance with all laws,
rules,  regulations,  orders, writs, injunctions and decrees that are applicable
to it, or its properties, noncompliance with which would have a Material Adverse
Effect.

     5.16  SOLVENT.  It (both  before  and  after  giving  effect  to the  Loans
contemplated hereby) is solvent, has assets having a fair value in excess of the
amount  required to pay its probable  liabilities  on its existing debts as they
become absolute and matured,  and has, and will have, access to adequate capital
for the  conduct of its  business  and the ability to pay its debts from time to
time incurred in connection therewith as such debts mature.

     5.17 INVESTMENT  BORROWER ACT. It is not, and is not directly or indirectly
controlled  by, or acting on behalf  of,  any  person  which is, an  "Investment
Borrower" within the meaning of the Investment Borrower Act of 1940, as amended.

     5.18 TITLE. It has good and marketable title to the Collateral.

     5.19 SURVIVAL OF  REPRESENTATIONS,  ETC. All representations and warranties
by Borrower  herein shall  survive the making of any Loan and the  execution and
delivery  of any  Note;  any  investigation  at any time made by or on behalf of
Lender  shall not diminish  Lender's  right to rely on the  representations  and
warranties herein.

     5.20  ENVIRONMENTAL  MATTERS.  Except as previously  disclosed to Lender in
writing,  it,  to the  best of its  knowledge  after  due  investigation,  is in
compliance in all material  respects with all applicable  environmental,  health
and safety  statutes and  regulations  and  Borrower  does not have any material
contingent  liability in  connection  with any improper  treatment,  disposal or
release into the environment of any hazardous or toxic waste or substance.

     5.21  LICENSES,  TRADENAMES.  It,  as of the  date  hereof,  possesses  all
necessary  trademarks,  tradenames,  copyrights,  patents,  patent  rights,  and
licenses to conduct its  business as now  operated,  without any known  conflict
with valid  trademarks,  tradenames,  copyright  patents and  license  rights of
others.

                                      -17-
<PAGE>
                                    ARTICLE 6

                              AFFIRMATIVE COVENANTS

     Until  payment  in full of the Loan  and the  complete  performance  of the
Obligation, Borrower agrees that:

     6.1 FINANCIAL STATEMENTS, REPORTS AND DOCUMENTS. It shall deliver, or cause
to be delivered, to Lender each of the following:

          (a) ANNUAL  STATEMENTS  OF BORROWER.  As soon as available  and in any
     event  within  ninety  (90) days  after the  close of each  fiscal  year of
     Borrower,  audited financial statements of Borrower,  including its balance
     sheet as of the  close of such  fiscal  year and  statements  of  income of
     Borrower for such fiscal year,  in each case setting  forth in  comparative
     form the figures for the preceding  fiscal year,  all in reasonable  detail
     and  accompanied by an unqualified  opinion  thereon of independent  public
     accountants  of  recognized  national  standing  selected by  Borrower  and
     acceptable to Lender,  to the effect that such  financial  statements  have
     been prepared in accordance with GAAP.

          (b) MONTHLY STATEMENTS OF BORROWER.  As soon as available,  and in any
     event within  thirty (30) days after the end of each month (except for that
     at the  close of the  fiscal  year),  an aging  report  as to its  accounts
     payable  as of the  end of such  month,  copies  of the  balance  sheet  of
     Borrower  as of the end of such month and  statement  of income of Borrower
     for that  month and for the  portion of the fiscal  year  ending  with such
     month,  prepared on a  consolidating  and  consolidated  basis in each case
     setting forth in comparative form the figures for the corresponding  period
     of the preceding fiscal year  (commencing  with the comparative  report for
     the month of April  2000),  all in  reasonable  detail and  fairly  stated,
     certified by Borrower and prepared by Borrower in accordance with GAAP.

          (c) COMPLIANCE CERTIFICATE OF BORROWER.  Within thirty (30) days after
     the end of each  quarter  hereafter  and ninety (90) days after the year of
     each fiscal year of Borrower,  a certificate  signed by the chief financial
     officer of the Borrower,  substantially in the form of Exhibit "B" attached
     hereto  certifying that after a review of the activities of Borrower during
     such period, Borrower has observed,  performed and fulfilled each and every
     obligation  and covenant  contained  herein and no Event of Default  exists
     under any of the same or,  if any Event of  Default  shall  have  occurred,
     specifying  the nature and status  thereof,  and stating that all financial
     statements  of Borrower  delivered to Lender during the  respective  period
     pursuant to Sections 6.1(a) and 6.1(b) hereof, to his/her knowledge, fairly
     present in all material respect the financial  position of the Borrower and
     the results of its  operations at the dates and for the periods  indicated,
     and have been prepared in accordance with GAAP, together with a calculation
     of the Financial Covenants.

                                      -18-
<PAGE>
          (d) BORROWING BASE CERTIFICATE.  Within ten (10) days after the end of
     each month, a Borrowing Base Certificate substantially in the form attached
     hereto as Exhibit "C".

          (e) OTHER MONTHLY REPORTS.  Within ten (10) days after the end of each
     month,  reports as to its accounts  receivable and inventory located in the
     United States,  except Lender in its sole discretion may not require any of
     these reports. Lender's waiver of this requirement for any particular month
     shall not constitute a waiver for any subsequent month.

          (f) OTHER INFORMATION. Such other information concerning the business,
     properties  (including  customer  lists and  product  detail) or  financial
     condition of Borrower as Lender shall reasonably request.

     6.2 MAINTENANCE OF EXISTENCE AND RIGHTS;  CONDUCT OF BUSINESS;  MANAGEMENT.
It will preserve and maintain its  existence and all of its rights,  privileges,
licenses,  permits,  franchises  and other rights  necessary or desirable in the
normal conduct of its business, conduct its business in an orderly and efficient
manner  consistent  with  good  business  practices  and  maintain  professional
management of its business.

     6.3  OPERATIONS  AND  PROPERTIES.  It will keep in good  working  order and
condition,  ordinary wear and tear  excepted,  all of its assets and  properties
which are necessary to the conduct of its business.

     6.4 AUTHORIZATIONS AND APPROVALS. It will maintain, at its own expense, all
such governmental licenses,  authorizations,  consents, permits and approvals as
may be required to enable it to comply with its obligations  hereunder and under
the other  Credit  Documents  and to operate  its  businesses  as  presently  or
hereafter duly conducted.

     6.5 COMPLIANCE  WITH LAW. It will comply with all applicable  laws,  rules,
regulations,  and all final,  nonappealable orders of any Governmental Authority
applicable to it or any of its property,  business  operations or  transactions,
including without limitation,  any environmental laws applicable to it, a breach
of which could result in a Material Adverse Effect.

     6.6 PAYMENT OF TAXES AND OTHER INDEBTEDNESS.  It will pay and discharge (i)
all income taxes and payroll taxes, (ii) all taxes, assessments,  fees and other
governmental  charges imposed upon it or upon its income or profits, or upon any
property belonging to it, before delinquent, which become due and payable, (iii)
all lawful claims (including claims for labor,  materials and supplies),  which,
if  unpaid,  might  become a Lien upon any of its  property  and (iv) all of its
Indebtedness  as it becomes due and  payable,  except as  prohibited  hereunder;
provided,  however,  that  it  shall  not be  required  to  pay  any  such  tax,
assessment,  charge,  levy, claims or Indebtedness if and so long as the amount,
applicability  or validity thereof shall currently be contested in good faith by
appropriate  actions and  appropriate  accruals and reserves  therefor have been
established in accordance with GAAP.

                                      -19-
<PAGE>
     6.7 COMPLIANCE WITH  SIGNIFICANT DEBT AGREEMENTS AND OTHER  AGREEMENTS.  It
will comply in all material  respects with (i) all Significant  Debt Agreements,
and (ii) all  agreements and contracts to which it is a party, a breach of which
could result in a Material Adverse Effect.

     6.8  COMPLIANCE  WITH  CREDIT  DOCUMENTS.  It will  comply with any and all
covenants and provisions of this Credit Agreement, the Note and all other Credit
Documents.

     6.9 NOTICE OF DEFAULT.  It will furnish to Lender immediately upon becoming
actually  aware of the existence of any event or condition  that  constitutes an
Event of Default, a written notice specifying the nature and period of existence
thereof  and the  action  which it is taking or  proposes  to take with  respect
thereto.

     6.10 OTHER  NOTICES.  It will  promptly  notify  Lender of (a) any Material
Adverse Effect,  (b) any waiver,  release or default under any Significant  Debt
Agreement,  (c) any claim not covered by  insurance  against  Borrower or any of
Borrower's   properties,   and  (d)  the   commencement  of,  and  any  material
determination  in, any litigation with any third party or any proceeding  before
any Governmental Authority affecting it, except litigation or proceedings which,
if adversely determined, would not have a Material Adverse Effect.

     6.11 BOOKS AND  RECORDS;  ACCESS.  Upon three (3) Banking  Days notice from
Lender,  it will give any  authorized  representative  of Lender  access  during
normal  business hours to, and permit such  representative  to examine,  copy or
make excerpts from,  any and all books,  records and documents in its possession
of and  relating  to the Loan,  and to inspect  any of its  properties.  It will
maintain  complete  and  accurate  books  and  records  of its  transactions  in
accordance with good accounting practices.

     6.12 ERISA COMPLIANCE. With respect to its Plans, it shall (a) at all times
comply with the minimum funding  standards set forth in Section 302 of ERISA and
Section  412 of the Code or shall  have duly  obtained  a formal  waiver of such
compliance from the proper  authority;  (b) at Lender's  request,  within thirty
(30) days after the filing  thereof,  furnish  to Lender  copies of each  annual
report/return  (Form 5500  Series),  as well as all  schedules  and  attachments
required to be filed with the  Department  of Labor and/or the Internal  Revenue
Service pursuant to ERISA, in connection with each of its Plans for each year of
the plan; (c) notify Lender within a reasonable time of any fact, including, but
not limited  to, any  Reportable  Event  arising in  connection  with any of its
Plans, which constitutes  grounds for termination thereof by the PBGC or for the
appointment  by the  appropriate  United States  District  Court of a trustee to
administer such Plan,  together with a statement,  if requested by Lender, as to
the reason  therefor and the action,  if any,  proposed to be taken with respect
thereto;  and (d) furnish to Lender  within a  reasonable  time,  upon  Lender's
request,  such  additional  information  concerning  any of its  Plans as may be
reasonably requested.

     6.13 FURTHER ASSURANCES.  It will make, execute or endorse, and acknowledge
and  deliver  or  file  or  cause  the  same  to  be  done,  all  such  notices,
certifications and additional agreements,  undertakings or other assurances, and
take any and all such  other  action,  as Lender  may,  from time to time,  deem
reasonably necessary or proper to fully evidence the Loan.

                                      -20-
<PAGE>
     6.14 INSURANCE. It shall maintain in full force and effect at all times all
insurance coverages required under the terms of this Credit Agreement and/or the
Security  Documents to which it is a party.  In addition,  it shall  maintain in
full force and effect at all times:

          (a)  Policies of all risk  coverage  insurance  covering  all tangible
     personalty in which Lender has been granted or obtained a security interest
     to secure the Obligation,  in coverage  amounts not less than, from time to
     time, the fair market value thereof.

          (b) Policies of insurance  evidencing  personal liability and property
     damage liability coverages in amounts not less than $1,000,000.00 (combined
     single limit for bodily injury and property damage), and an umbrella excess
     liability  coverage  in an amount not less than  $2,000,000.00  shall be in
     effect with respect to Borrower.

          (c)  Policies of workers'  compensation  insurance in amounts and with
     coverages as legally required.

Without  limitation of the foregoing,  it shall at all times maintain  insurance
coverages in scope and amount not less than,  and not less  extensive  than, the
scope and amount of insurance coverages customary in the trades or businesses in
which it is from time to time engaged.  All of the aforesaid insurance coverages
shall be issued by insurers reasonably acceptable to Lender.

     Copies of all policies of  insurance  evidencing  such  coverages in effect
from time to time and showing Lender as an additional  insured  and/or  Lender's
loss payee,  as required by Lender,  shall be delivered to Lender within fifteen
(15) days of the Closing Date and upon  reasonable  notice upon  issuance of new
policies thereafter. From time to time, promptly upon Lender's request, it shall
provide evidence  satisfactory to Lender (i) that required  coverage in required
amounts is in effect,  and (ii) that  Lender is shown as an  additional  insured
and/or  Lender's  loss payee,  as required by Lender,  with  respect to all such
coverages,  as Lender's interest may appear, by standard  (non-attribution) loss
payable endorsement,  additional insured endorsement,  insurer's  certificate or
other  means  acceptable  to Lender in its  reasonable  discretion.  At Lender's
option,  it shall  deliver to Lender  certified  copies of all such  policies of
insurance  in effect  from  time to time,  to be  retained  by Lender so long as
Lender shall have any  commitment  to lend  hereunder  and/or any portion of the
Obligation  shall be outstanding  or  unsatisfied.  All such insurance  policies
shall  provide  for at least  thirty  (30)  days  prior  written  notice  of the
cancellation or modification thereof to Lender.

     6.15  DEPOSITORY  ACCOUNTS.  Within  thirty (30) days of the Closing  Date,
Borrower shall establish and maintain its principal  depository  accounts (other
than payroll  accounts) with and utilize cash  management  services  provided by
Lender.

                                      -21-
<PAGE>
     6.16 EQUIPMENT  LOCATED IN UNITED KINGDOM.  Within one hundred twenty (120)
days of the Closing Date, it will provide  evidence  reasonably  satisfactory to
Lender that all of the  equipment  inventory  located in the United  Kingdom has
been either  transferred  to the United  States or sold.  In the event  Borrower
fails to comply with the requirements of the previous sentence,  Borrower agrees
that it shall pay all  reasonable  costs  and  expenses  of  Lender  (including,
without  limitation,  the attorneys' fees of Lender's legal counsel) incurred by
Lender in perfecting its security interest in the equipment inventory located in
the United Kingdom.  Borrower further agrees that it shall execute all documents
reasonably necessary to perfect such security interest.

                                      -22-
<PAGE>
                                    ARTICLE 7

                               NEGATIVE COVENANTS

     Until payment in full of the Loan and the  performance  of the  Obligation,
Borrower  shall not,  without  receiving  the prior express  written  consent of
Lender:

     7.1 NO DEBT. ATSI shall not become or remain  obligated  either directly or
as a guarantor or surety for any  Indebtedness  for borrowed  money,  or for any
Indebtedness  incurred in connection with the acquisition of any property,  real
or  personal,  tangible or  intangible  including,  but not  limited  to,  lease
purchase agreements, except:

          (a) Indebtedness to the Lender.

          (b) Leases and specific equipment financed by TLD Funding.

          (c) Indebtedness secured by liens permitted under Section 7.2 hereof.

Notwithstanding  anything contained herein, ATSI may obtain additional financing
for new equipment from TLD Funding  pursuant to the TLD Funding Credit  Facility
provided  that ATSI shall inform  Lender in writing of such new financing on the
date of such financing.

     7.2 LIENS. On and after the date hereof, Borrower will not create or suffer
to exist Liens upon its property, real or personal, including without limitation
its  patents,  copyrights  and  trademarks,  except (i) Liens,  if any,  for the
benefit of Lender, and (ii) Permitted Liens.

     7.3 EXISTENCE.  Dissolve or liquidate, or merge or consolidate with or into
any other  entity,  or turn over the  management  or operation of its  property,
assets or business  to any other  Person or make any  substantial  change in the
character of its business.

     7.4  AMENDMENTS  TO  ORGANIZATIONAL  DOCUMENTS.  Amend  its  organizational
documents  if the result  thereof  could  result in the  occurrence  directly or
indirectly of a Material Adverse Effect.

     7.5 MARGIN  STOCK.  Use any  proceeds of the Loans,  or any proceeds of any
other or future  financial  accommodation  from Lender for the purpose,  whether
immediate,  incidental or ultimate, of purchasing or carrying any "margin stock"
as that term is defined in Regulation U or to reduce or retire any  indebtedness
undertaken for such purposes  within the meaning of said  Regulation U, and will
not use such proceeds in a manner that would involve  Borrower in a violation of
Regulation U or of any other Regulation of the Board of Governors of the Federal
Reserve System, nor use such proceeds for any purpose not permitted by Section 7
of the  Exchange  Act,  or  any  of the  rules  or  regulations  respecting  the
extensions of credit promulgated thereunder.

                                      -23-
<PAGE>
     7.6 DISTRIBUTIONS. Declare or pay any dividends or make any distribution of
any  kind,  other  than  existing  debt as of the  Closing  Date,  not to exceed
$150,000.00.

     7.7  INDEBTEDNESS;  PAYMENTS.  With respect to any new Indebtedness that is
not permitted  Indebtedness  under Section 7.1 herein,  Borrower  agrees that at
least five (5) Banking Days prior to incurring any such  Indebtedness,  Borrower
shall inform Lender in writing of any Indebtedness (i) with a Person that is not
an Affiliate of Borrower, or (ii) with a Person that is an Affiliate of Borrower
unless such Indebtedness  consists of Subordinated Debt. Borrower shall not make
any  payment  on  its  Subordinated  Debt  in any  month  unless  it is in  full
compliance  with all  Financial  Covenants  and the  Borrowing  Base  limitation
pursuant to Section  2.5(b),  prior to and after giving  effect to such payment.
Whenever Borrower incurs any debt with a Person that is an Affiliate of Borrower
which has not previously  executed a Subordination  Agreement for the benefit of
Lender,  Borrower  shall cause such Affiliate to execute and deliver to Lender a
Subordination Agreement.

     7.8 TRANSFER COLLATERAL. Assign, transfer or convey any of its right, title
and interest in the Collateral;  provided,  however, that ATSI may transfer cash
to any Subsidiary of Borrower solely for the purpose of funding normal operating
expenses of such Subsidiary provided that no Event of Default and no event, that
with the giving of notice or the passage of time, or both,  would be an Event of
Default  (including,  but not limited to, the failure to make Principal Payments
as provided  herein and in the Note),  shall have  occurred and be continuing on
the date of such transfer of cash.

     7.9  MERGER;  SALE OF  ASSETS.  (i) Sell,  lease,  transfer  or  dispose of
substantially  all of the Collateral to another entity; or (ii) consolidate with
or merge the  Collateral  into  another  entity,  or permit any  transfer of the
ownership  of the  Collateral,  permit  any  other  entity  to merge  into it or
consolidate  with it,  or  permit  any  transfer  of the  ownership  or power to
control, Borrower.

     7.10 FINANCIAL COVENANTS.

          (a)  NET  INCOME.  Permit  Borrower's  Net  Income  for  any  two  (2)
     consecutive  fiscal  months for any fiscal  year to be less than zero (i.e.
     net loss).

          (b) INTEREST  COVERAGE  RATIO.  Commencing  on March 31, 2000,  permit
     Borrower's  EBITDA  Ratio  to be  less  than  3.0 to 1.0 at the  end of any
     quarter, measured on a rolling four (4) quarter basis.

                                      -24-
<PAGE>
                                    ARTICLE 8

                                EVENTS OF DEFAULT

     8.1 EVENTS OF DEFAULT. An "Event of Default" shall exist if any one or more
of the following events (herein  collectively  called "Events of Default") shall
occur and be continuing:

          (a) Borrower  shall fail to pay any  principal of, or interest on, the
     Note when the same shall become due or payable and such  failure  continues
     for five (5) Banking Days after notice thereof to Borrower.

          (b) Any failure or neglect to perform or observe any of the covenants,
     conditions,  provisions or agreements of Borrower  contained  herein, or in
     any of  the  other  Credit  Documents  (other  than a  failure  or  neglect
     described in one or more of the other  provisions  of this Section 8.1) and
     such  failure  or  neglect  either  cannot  be  remedied  or,  if it can be
     remedied,  it continues  unremedied for a period of fifteen (15) days after
     written notice thereof to Borrower.

          (c) Any warranty, representation or statement contained in this Credit
     Agreement  or any of the other Credit  Documents,  or which is contained in
     any certificate or statement furnished or made to Lender pursuant hereto or
     in  connection  herewith or with the Loan,  shall be or shall prove to have
     been false when made or furnished.

          (d) The occurrence of any material  "event of default" or "default" by
     Borrower  under any Credit  Document,  or any  agreement,  now or hereafter
     existing,  to which Lender or an  Affiliate  of Lender,  and Borrower or an
     Affiliate of Borrower are a party.

          (e) Borrower shall (i) fail to pay any Indebtedness of Borrower (other
     than the Note) due under any Significant Debt Agreement, or any interest or
     premium  thereon,  when  due  (whether  by  scheduled  maturity,   required
     prepayment,  acceleration,  demand,  or otherwise) or within any applicable
     grace  period,  (ii) fail to  perform  or observe  any term,  covenant,  or
     condition on its part to be performed  or observed  under any  agreement or
     instrument  relating  to such  Indebtedness,  within any  applicable  grace
     period when  required to be performed  or  observed,  if the effect of such
     failure  to  perform  or observe  is to  accelerate  the  maturity  of such
     Indebtedness,  or any such  Indebtedness  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,  or (iii)  allow the
     occurrence  of  any  material   event  of  default  with  respect  to  such
     Indebtedness.

          (f) Any one or more of the Credit Documents shall have been determined
     to  be  invalid  or  unenforceable  against  Borrower executing the same in

                                      -25-
<PAGE>
     accordance  with  the  respective  terms  thereof,  or  shall in any way be
     terminated or become or be declared  ineffective or  inoperative,  so as to
     deny Lender the substantial  benefits  contemplated by such Credit Document
     or Credit Documents.

          (g) Borrower  shall (i) apply for or consent to the  appointment  of a
     receiver, trustee, custodian,  intervenor or liquidator of itself or of all
     or a  substantial  part of its assets,  (ii) file a  voluntary  petition in
     bankruptcy  or admit in writing  that it is unable to pay its debts as they
     become due,  (iii) make a general  assignment for the benefit of creditors,
     (iv) file a petition or answer  seeking  reorganization  of an  arrangement
     with creditors or to take  advantage of any bankruptcy or insolvency  laws,
     (v) file an answer admitting the material allegations of, or consent to, or
     default in  answering,  a  petition  filed  against  it in any  bankruptcy,
     reorganization or insolvency proceeding,  or (vi) take corporate action for
     the purpose of effecting any of the foregoing

          (h) An  involuntary  petition  or  complaint  shall be  filed  against
     Borrower,   seeking  bankruptcy  or  reorganization  of  Borrower,  or  the
     appointment of a receiver,  custodian, trustee, intervenor or liquidator of
     Borrower,  or all or substantially all of its assets,  and such petition or
     complaint  shall  not have been  dismissed  within  sixty  (60) days of the
     filing thereof; or an order, order for relief,  judgment or decree shall be
     entered by any court of competent jurisdiction or other competent authority
     approving a petition  or  complaint  seeking  reorganization  of  Borrower,
     appointing a receiver,  custodian,  trustee,  intervenor  or  liquidator of
     Borrower,  or all or  substantially  all of its  assets,  and  such  order,
     judgment or decree  shall  continue  unstayed and in effect for a period of
     sixty (60) days.

          (i) Any final judgment(s) (excluding those the enforcement of which is
     suspended  pending appeal) for the payment of money in excess of the sum of
     $100,000 in the  aggregate  (other than any  judgment  covered by insurance
     where  coverage has been  acknowledged  by the  insurer)  shall be rendered
     against  Borrower,  and such judgment or judgments  shall not be satisfied,
     settled,  bonded or  discharged at least ten (10) days prior to the date on
     which any of its assets could be lawfully sold to satisfy such judgment.

          (j) Either (i) proceedings shall have been instituted to terminate, or
     a notice of  termination  shall have been filed with  respect to, any Plans
     (other  than a  Multi-Employer  Pension  Plan as that  term is  defined  in
     Section  4001(a)(3)  of ERISA) by  Borrower,  any member of the  Controlled
     Group, PBGC or any representative of any thereof, or any such Plan shall be
     terminated,  in each case  under  Section  4041 or 4042 of ERISA,  and such
     termination  shall  give  rise  to a  liability  of  the  Borrower  or  the
     Controlled  Group to the PBGC or the Plan under  ERISA  having an effect in
     excess of $100,000 or (ii) a  Reportable  Event,  the  occurrence  of which
     would cause the  imposition  of a lien in excess of $100,000  under Section
     4062 of ERISA,  shall have  occurred with respect to any Plan (other than a
     Multi-Employer  Pension Plan as that term is defined in Section  4001(a)(3)
     of ERISA) and be continuing for a period of sixty (60) days.

                                      -26-
<PAGE>
          (k) Any of the following events shall occur with respect to any Multi-
     Employer  Pension  Plan (as that term is defined in Section  4001(a)(3)  of
     ERISA)  to which  Borrower  contributes  or  contributed  on  behalf of its
     employees and Lender determines in good faith that the aggregate  liability
     likely  to be  incurred  by  Borrower,  as a  result  of any of the  events
     specified in Subsections (i), (ii) and (iii) below,  will have an effect in
     excess of  $100,000;  (i)  Borrower  incurs a  withdrawal  liability  under
     Section 4201 of ERISA;  (ii) any such plan is "in  reorganization"  as that
     term is  defined  in  Section  4241 of  ERISA;  or (iii)  any such  Plan is
     terminated under Section 4041A of ERISA.

          (l) The occurrence of a change in the Control of Borrower  without the
     written consent of Lender, which will not be unreasonably withheld.

          (m) The  dissolution,  liquidation,  sale,  transfer,  lease  or other
     disposal of all or substantially all of the assets or business of Borrower.

          (n) Any failure to observe any of the Financial Covenants.

          (o) A  substantial  change  in  the  duties,  responsibilities  and/or
     authority of either Don M. Jackson or Gloria J. Zemla.

          (p) The occurrence of any adverse change in the financial condition of
     Borrower that Lender in its reasonable  discretion  deems  material,  or if
     Lender  in good  faith  shall  believe  that the  prospect  of  payment  or
     performance of the Loans is impaired.

     8.2  REMEDIES  UPON EVENT OF  DEFAULT.  If an Event of  Default  shall have
occurred and be  continuing,  then Lender may, at its sole option,  exercise any
one or more of the  following  rights  and  remedies,  and  any  other  remedies
provided in any of the Credit  Documents,  as Lender in its sole  discretion may
deem necessary or appropriate, all of which remedies shall be deemed cumulative,
and not alternative:

               (i)  Cease   making   Advances   or   extensions   of   financial
          accommodations in any form to or for the benefit of Borrower,

               (ii) Declare the  principal of, and all interest then accrued on,
          the Note and any other  liabilities  hereunder to be forthwith due and
          payable,  whereupon the same shall become  immediately due and payable
          without presentment,  demand,  protest,  notice of default,  notice of
          acceleration or of intention to accelerate or other notice of any kind
          all of which Borrower  hereby  expressly  waives,  anything  contained
          herein or in the Note to the contrary notwithstanding,

                                      -27-
<PAGE>
               (iii) Reduce any claim to judgment, and/or

               (iv) Without notice of default or demand,  pursue and enforce any
          of  Lender'  rights  and  remedies  under  the  Credit  Documents,  or
          otherwise  provided  under  or  pursuant  to  any  applicable  law  or
          agreement;  provided,  however, that if any Event of Default specified
          in Sections  8.1(g) and 8.1(h) shall occur,  the principal of, and all
          interest on, the Note and other liabilities  hereunder shall thereupon
          become due and  payable  concurrently  therewith,  without any further
          action by Lender and without presentment,  demand,  protest, notice of
          default, notice of acceleration or of intention to accelerate or other
          notice of any kind, all of which Borrower hereby expressly waives.

     Upon the  occurrence  and during the  continuance  of any Event of Default,
Lender is  hereby  authorized  at any time and from time to time,  with five (5)
days notice to Borrower,  to setoff and apply any and all moneys,  securities or
other property of Borrower and the proceeds therefrom,  now or hereafter held or
received  by or in transit to Lender or its  agents,  from or for the account of
Borrower, whether for safe keeping, custody, pledge, transmission, collection or
otherwise,  and also upon any and all deposits  (general or special) and credits
of  Borrower,  and any and all  claims of  Borrower  against  Lender at any time
existing.  Lender agrees promptly to notify Borrower prior to and after any such
setoff and application,  provided that the failure to give such notice shall not
affect the validity of such setoff and  application.  The rights of Lender under
this  Section  8.2 are in  addition  to other  rights and  remedies  (including,
without limitation, other rights of setoff) which Lender may have.

     8.3  PERFORMANCE BY LENDER.  Should  Borrower fail to perform any covenant,
duty or agreement  with respect to the payment of taxes,  obtaining  licenses or
permits,  or any other  requirement  contained  herein  or in any of the  Credit
Documents  within the period  provided  herein,  if any, for  correction of such
failure,  Lender may, with five (5) days prior notice, at its option, perform or
attempt to perform such  covenant,  duty or agreement on behalf of Borrower.  In
such event,  Borrower shall,  at the request of Lender,  promptly pay any amount
expended by Lender in such performance or attempted performance to Lender at its
office in Inglewood,  California,  together with interest thereon at the Default
Rate,  from  the  date of  such  expenditure  until  paid.  Notwithstanding  the
foregoing,  it is expressly understood that Lender does not assume any liability
or  responsibility  for the  performance of any duties of Borrower  hereunder or
under any of the Credit  Documents  or other  control  over the  management  and
affairs of Borrower.

                                      -28-
<PAGE>
                                    ARTICLE 9

                                  MISCELLANEOUS

     9.1 MODIFICATION. All modifications, consents, amendments or waivers of any
provision  of any  Credit  Document,  or consent to any  departure  by  Borrower
therefrom,  shall be effective only if the same shall be in writing and accepted
by Lender.

     9.2 WAIVER. No failure to exercise, and no delay in exercising, on the part
of Lender, any right hereunder shall operate as a waiver thereof,  nor shall any
single or partial  exercise  thereof preclude any other further exercise thereof
or the exercise of any other right. The rights of Lender hereunder and under the
Credit  Documents  shall be in addition to all other rights  provided by law. No
modification  or waiver of any provision of this Credit  Agreement,  the Note or
any Credit  Documents,  nor consent to departure  therefrom,  shall be effective
unless  in  writing  and no such  consent  or waiver  shall  extend  beyond  the
particular  case and  purpose  involved.  No notice or demand  given in any case
shall constitute a waiver of the right to take other action in the same, similar
or other instances without such notice or demand.

     9.3  PAYMENT OF  EXPENSES.  Borrower  shall pay all costs and  expenses  of
Lender  (including,  without  limitation,  the attorneys' fees of Lender's legal
counsel)  incurred by Lender in connection with the  documentation of the Loans,
and the  preservation  and  enforcement  of  Lender's  rights  under this Credit
Agreement, the Note, and/or the other Credit Documents;  provided, however, that
notwithstanding  the  aforesaid,  with respect to any legal  action  between the
parties  hereto that is pursued to judgment the  prevailing  party only shall be
reimbursed  by the other party for all costs and  expenses  (including,  without
limitation,  reasonable  attorneys'  fees and costs) incurred in connection with
the preservation and enforcement of its rights under this Credit Agreement,  the
Note and/or other Credit  Documents.  In addition,  Borrower shall pay all costs
and  expenses  of  Lender  in  connection  with  the  negotiation,  preparation,
execution and delivery of any and all amendments,  modifications and supplements
of or to this Credit Agreement, the Note or any other Credit Document.  Borrower
shall  receive a written  estimate of all legal fees and related legal costs and
will have an  opportunity  to review all such  estimates  prior to its approval,
which shall not be unreasonably withheld.

     9.4 NOTICES. Except for telephonic notices permitted herein, any notices or
other communications  required or permitted to be given by this Credit Agreement
or any other documents and  instruments  referred to herein must be (i) given in
writing and  personally  delivered or mailed by prepaid  certified or registered
mail  or sent by  overnight  delivery  service,  or (ii)  made by  telefacsimile
delivered or transmitted,  to the party to whom such notice or  communication is
directed, to the address of such party as follows:

                                      -29-
<PAGE>
     Borrower:           SITEK, Incorporated
                         1817 West 4th Street
                         Tempe, Arizona 85281
                         Attention: Gloria Zemla - CFO
                         Telecopier: (602) __________

     with a copy to:     Robert S. Bornhoft, Esq.
                         Quarles & Brady
                         One East Camelback Road
                         Suite 400
                         Phoenix, Arizona 85012
                         Telecopier: (602) __________

     Lender:             Imperial Bank
                         9920 South La Cienega Boulevard
                         Suite 636
                         Inglewood, California  90301
                         Attention: Lending Services
                         Telecopier:  (310) 417-5695

     With a copy to:     Imperial Bank
                         400 East Van Buren
                         Suite 900
                         Phoenix, Arizona  85004
                         Attention: Edmund Ozorio
                         Telecopier:  (602) 261-7881

          Any  notice  to be  personally  delivered  may  be  delivered  to  the
          principal offices  (determined as of the date of such delivery) of the
          party to whom  such  notice  is  directed.  Any such  notice  or other
          communication  shall be deemed to have been  given  (whether  actually
          received or not) on the day it is  personally  delivered as aforesaid;
          or, if mailed,  on the third day after it is mailed as aforesaid;  or,
          if  transmitted  by  telefacsimile,  on the day that  such  notice  is
          transmitted  as  aforesaid.  Any  party may  change  its  address  for
          purposes of this Credit  Agreement by giving  notice of such change to
          the other parties pursuant to this Section 9.4.

     9.5 GOVERNING  LAW;  JURISDICTION,  VENUE;  WAIVER OF JURY TRIAL.  The Loan
Documents  shall be governed by and construed in accordance with the substantive
laws (other than conflict laws) of the State of California, except to the extent
Lender has greater rights or remedies  under Federal law,  whether as a national
bank or  otherwise,  in which case such  choice of  California  law shall not be
deemed to deprive  Lender of any such rights and  remedies  as may be  available
under Federal law.  Subject to the provisions of Section 9.6 hereof,  each party
consents to the personal  jurisdiction  and venue of the state courts located in
Los Angeles,  State of California in connection with any controversy  related to
this  Agreement,  waives  any  argument  that  venue  in any  such  forum is not
convenient and agrees that any litigation initiated by any of them in connection

                                      -30-
<PAGE>
with this Agreement shall be venued in the Superior Court of Los Angeles County,
California.  The  parties  waive  any  right to trial by jury in any  action  or
proceeding  based  on or  pertaining  to  this  Agreement  or any of the  Credit
Documents.

     9.6 REFERENCE PROVISION.

          (a) Each  controversy,  dispute or claim ("Claim") between the parties
     arising  out of or  relating  to this  Agreement  and/or  any of the Credit
     Documents, which is not settled in writing within ten days after the "Claim
     Date"  (defined  as the date on which a party gives  written  notice to all
     other parties that a controversy, dispute or claim exists), will be settled
     by a reference  proceeding in Los Angeles,  California,  in accordance with
     the  provisions  of Section  638 ET SEQ.  of the  California  Code of Civil
     Procedure,  or their successor section ("CCP"),  which shall constitute the
     exclusive  remedy for the settlement of any Claim,  including  whether such
     Claim is subject to the  reference  proceeding  and the parties waive their
     rights to initiate any legal proceedings against each other in any court or
     jurisdiction  other than the Superior  Court of Los Angeles (the  "Court").
     The referee  shall be a retired Judge  selected by mutual  agreement of the
     parties,  and if they  cannot so agree  with in thirty  days (30) after the
     Claim Date,  the referee  shall be selected by the  Presiding  Judge of the
     Court.  The referee  shall be  appointed  to sit as a temporary  judge,  as
     authorized by law. The referee shall (a) be requested to set the matter for
     hearing within sixty (60) days after the Claim Date and (b) try any and all
     issues of law or fact and report a  statement  of  decision  upon them,  if
     possible,  within ninety (90) days of the Claim Date. Any decision rendered
     by the referee will be final,  binding and conclusive and judgment shall be
     entered pursuant to CCP 644 in the Court.  All discovery  permitted by this
     Agreement  shall be  completed  no later than  fifteen (15) days before the
     first hearing date established by the referee.  The referee may extend such
     period in the event of a party's refusal to provide requested discovery for
     any reason  whatsoever,  including,  without  limitation,  legal objections
     raised to such discovery or  unavailability  of a witness due to absence or
     illness.  No party shall be entitled to "priority" in conducing  discovery.
     Depositions  may be taken by  either  party  upon  seven  (7) days  written
     notice,  and,  request for  production of inspection of documents  shall be
     responded to within ten (10) days after service.  All disputes  relating to
     discovery which cannot be resolved by the parties shall be submitted to the
     referee whose decision shall be final and binding upon the parties.

          (b)  The  referee  shall  be  required  to  determine  all  issues  in
     accordance  with existing  case law and the statutory  laws of the State of
     California.  The rules of evidence  applicable to proceedings at law in the
     State of California  will be applicable  to the reference  proceeding.  The
     referee shall be empowered to enter  equitable as well as legal relief,  to
     provide all temporary  and/or  provisional  remedies and to enter equitable
     orders that will be binding  upon the  parties.  The referee  shall issue a
     single  judgment  at the  close of the  reference  proceeding  which  shall

                                      -31-
<PAGE>
     dispose of all of the  claims of the  parties  that are the  subject to the
     reference.  The parties  hereto  expressly  reserve the right to contest or
     appeal  from the  final  judgment  or any  appealable  order or  appealable
     judgment entered by the referee. The parties expressly reserve the right to
     findings of fact,  conclusions of law, a written statement of decision, and
     the right to move for a new trial or a different judgment, which new trial,
     if granted, is also to be a reference proceeding under this provision.

          (c) No  provision  of  Paragraphs  (a) or (b)  of  this  Section  9.6,
     however,  shall limit the right of Lender to bring action for possession of
     any collateral in any jurisdiction,  wherever  located,  in accordance with
     the provisions of the Security Documents.

     9.7 INVALID PROVISIONS.  If any provision of any Credit Document is held to
be illegal,  invalid or  unenforceable  under  present or future laws during the
term of this Credit  Agreement,  such provision shall be fully  severable;  such
Credit  Document shall be construed and enforced as if such illegal,  invalid or
unenforceable  provision had never comprised a part of such Credit Document; and
the remaining  provisions of such Credit Document shall remain in full force and
effect  and shall not be  affected  by the  illegal,  invalid  or  unenforceable
provision or by its severance from such Credit Document. Furthermore, in lieu of
each such illegal,  invalid or  unenforceable  provision there shall be added as
part of such Credit  Document a provision  mutually  agreeable  to Borrower  and
Lender as similar in terms to such illegal,  invalid or unenforceable  provision
as may be possible and be legal, valid and enforceable.

     9.8 BINDING EFFECT. The Credit Documents shall be binding upon and inure to
the benefit of Borrower and Lender and their respective successors,  assigns and
legal  representatives;  provided,  however,  that Borrower may not, without the
prior  written  consent  of  Lender,  assign  any  rights,   powers,  duties  or
obligations thereunder.

     9.9 ENTIRETY.  The Credit Documents embody the entire agreement between the
parties and supersede all prior agreements and understandings,  if any, relating
to the subject matter hereof and thereof.

     9.10 HEADINGS.  Section  headings are for convenience of reference only and
shall in no way affect the interpretation of this Credit Agreement.

     9.11 SURVIVAL.  All  representations and warranties made by Borrower herein
shall survive delivery of the Note and the making of the Loan.

     9.12 NO THIRD PARTY BENEFICIARY.  The parties do not intend the benefits of
this  Credit  Agreement  to inure to any  third  party,  nor shall  this  Credit
Agreement  be  construed  to make or render  Lender  liable to any  materialman,
supplier, contractor,  subcontractor,  purchaser or lessee of any property owned
by  Borrower,  or for  debts or  claims  accruing  to any such  persons  against
Borrower.  Notwithstanding  anything  contained herein or in the Note, or in any
other Credit Document,  or any conduct or course of conduct by any or all of the

                                      -32-
<PAGE>
parties  hereto,  before or after  signing  this Credit  Agreement or any of the
other  Credit  Documents,  neither  this Credit  Agreement  nor any other Credit
Document  shall be  construed  as creating  any right,  claim or cause of action
against Lender, or any of its officers, directors, agents or employees, in favor
of any materialman, supplier, contractor, subcontractor,  purchaser or lessee of
any  property  owned by  Borrower,  nor to any other person or entity other than
Borrower.

     9.13 TIME. Time is of the essence hereof.

     9.14  SCHEDULES  AND  EXHIBITS  INCORPORATED.  All  schedules  and exhibits
attached hereto,  if any, are hereby  incorporated into this Credit Agreement by
each reference thereto as if fully set forth at each such reference.

     9.15  COUNTERPARTS.  This  Credit  Agreement  may be  executed  in multiple
counterparts,  each of which, when so executed,  shall be deemed an original but
all such counterparts shall constitute but one and the same agreement.

     IN WITNESS WHEREOF,  the undersigned have executed this Credit Agreement as
of the day and year first above written.

                                        SITEK, INCORPORATED, a Delaware
                                        corporation

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

                                        ADVANCED TECHNOLOGY SERVICES, INC.,
                                        an Arizona corporation

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

                                        IMPERIAL BANK, a California banking
                                        corporation

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

                                      -33-
<PAGE>
                                   EXHIBIT "A"

                             FORM OF ADVANCE NOTICE

Imperial Bank
400 East Van Buren
Suite 900
Phoenix, Arizona  85004
Attention: Edmund Ozorio                                     Date:______________
Telecopier: (602) 261-7881
                                                             Time:______________

Dear Ladies and Gentlemen:

     The  undersigned  ("Borrower")  refers to the Credit  Agreement dated as of
January 10, 2000 (as it may hereafter be amended, modified, extended or restated
from time to time,  the "Credit  Agreement"),  between  SITEK,  Incorporated,  a
Delaware  corporation  and  Advanced  Technology  Services,   Inc.,  an  Arizona
corporation  (together,  the "Borrower"),  and Imperial Bank.  Capitalized terms
used herein and not otherwise defined herein shall have the meanings assigned to
such terms in the Credit Agreement.

     The Borrower  hereby  gives notice that it requests an Advance  pursuant to
Section  2.3 of the  Credit  Agreement  and sets  forth  below the terms of such
requested Advance:

     A.   Date of Advance
                                                            --------------------
     B.   Principal Amount of Advance
                                                            --------------------

                                        Sincerely,

                                        SITEK INCORPORATED, a Delaware
                                        corporation

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

                                        ADVANCED TECHNOLOGY SERVICES, INC.,
                                        an Arizona corporation

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------
<PAGE>
                                   EXHIBIT "B"

                             COMPLIANCE CERTIFICATE
                                FOR PERIOD ENDING

                               ------------------
                              ("REPORTING PERIOD")

Imperial Bank Arizona
400 East Van Buren
Suite 900
Phoenix, Arizona  85004
Attention: Edmund Ozorio
Telecopier:  (602) 261-7881                                Date:_____________(1)

Dear Ladies and Gentlemen:

     This  Compliance  Certificate  refers to the Credit  Agreement  dated as of
January 10, 2000 (as it may hereafter be amended, modified, extended or restated
from time to time,  the "Credit  Agreement"),  between  SITEK,  Incorporated,  a
Delaware  corporation  and  Advanced  Technology  Services,   Inc.,  an  Arizona
corporation  (together,  the "Borrower") and Imperial Bank, a California banking
corporation.  Capitalized terms used and not otherwise defined herein shall have
the meanings assigned to such terms in the Credit Agreement.

     Pursuant to Section 6.1 of the Credit  Agreement,  the undersigned,  hereby
certifies that:

     1. To the  best of the  undersigned's  knowledge,  after  a  review  of the
activities  of Borrower  during the  Reporting  Period,  Borrower has  observed,
performed and fulfilled each and every obligation and covenant  contained in the
Credit  Agreement  and  no  "Event  of  Default"  thereunder  exists  [or if so,
specifying the nature and extent thereof and any corrective  actions taken or to
be taken].

----------
(1)  To be submitted within 30 days after the end of each quarter.
<PAGE>
     2. All  financial  statements  of Borrower  delivered to Lender  during the
Reporting Period, to the undersigned's knowledge, fairly present in all material
respect the financial position of the Borrower and the results of its operations
at the dates and for the periods  indicated and have been prepared in accordance
with GAAP.

     3. As of the last Reporting  Period,  the computations  below were true and
correct:

     Section 7.10 - Financial Covenants

          (a)  INTEREST COVERAGE RATIO.

          Numerator: EBITDA                                    A    $_______

          Denominator: Interest Expense                        B    $_______

          A divided by B equals                                A/B   _______x

          Minimum                                              3.0 to 1.0x

          (b) NET INCOME.  The Borrower _____  satisfies  _____ does not satisfy
     the  requirement  that  the  Borrower  not  incur a net loss in any two (2)
     consecutive quarters or any fiscal year.

                                        SITEK, INCORPORATED, a Delaware
                                        corporation

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Its:
                                             -----------------------------------

                                        ADVANCED TECHNOLOGY SERVICES, INC.,
                                        an Arizona corporation

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Its:
                                             -----------------------------------

                                       -2-
<PAGE>
                                   EXHIBIT "C"

                           BORROWING BASE CERTIFICATE
<PAGE>
                                   EXHIBIT "D"

                             SUBORDINATION AGREEMENT

TO:  IMPERIAL BANK

     The  undersigned  ("We") are interested in the financial  success of SITEK,
INCORPORATED,  a Delaware corporation and ADVANCED TECHNOLOGY SERVICES, INC., an
Arizona  corporation  (together,  the  "Borrower"),  and  agree  that  financial
accommodations from IMPERIAL BANK ("Bank" or "You") to Borrower pursuant to that
Credit  Agreement  dated as of January 10,  2000 (the  "Credit  Agreement")  are
necessary,  and we  accordingly  request that you grant to or renew for Borrower
such  financial  accommodation  as you may deem  proper,  and for the purpose of
inducing you to grant, renew or extend such financial  accommodation,  we hereby
severally agree as follows:

     All claims of each of the  undersigned  against  Borrower  now or hereafter
existing,  whether  matured or not (subject to the maximum if specified  below),
are and shall be at all times  subordinate  and subject to any and all claims on
your part against Borrower now or hereafter existing, whether matured or not, so
long as any such claim on your part against  Borrower  shall remain  unpaid,  in
whole or in part,  and each of the  undersigned  agrees  not to sue upon,  or to
collect, or to receive payment upon, by setoff or in any other manner, any claim
or claims on his/hers or its part against  Borrower  now or hereafter  existing,
nor to sell, assign,  transfer,  pledge, or give a security interest in the same
(except  subject  expressly  to this  Agreement),  nor to  enforce  or apply any
security now or hereafter existing, nor to join in any petition in bankruptcy or
any assignment for the benefit of creditors or any creditors  agreement,  nor to
take any lien or security on any of Borrower's property,  real or personal,  nor
to incur any  obligation  to nor  receive  any  loans,  advances  or gifts  from
Borrower, so long as any such claim on your part against Borrower shall exist or
so long as you are  committed  or  otherwise  obligated to make any loans to, or
grant any credit to,  Borrower.  In addition,  so long as any claim on your part
against  Borrower  shall remain unpaid,  in whole or in part,  Bank shall have a
prior security  interest in the assets of Borrower  consisting of Collateral (as
defined in the Credit  Agreement),  now owned or hereafter  acquired by Borrower
and each of the undersigned hereby subordinates any security interest, including
without  limitation  any purchase  money  security  interest,  which each of the
undersigned  now has or  hereafter  acquires in the  Collateral  to all security
interests which Bank now has or hereafter acquires in the Collateral.

     All claims on your part against Borrower now or hereafter existing shall be
first paid by Borrower  before any  payment  shall be made by Borrower to any of
the  undersigned  unless  Borrower  is in full  compliance  with  all  Financial
Covenants  (as  defined  in  the  Credit  Agreement)  contained  in  the  Credit
Agreement,  prior to and after giving effect to such  payment.  Said priority of
payment  shall apply during the ordinary  course of  Borrower's  business and in
case of any assignment by Borrower for the benefit of Borrower's creditors,  and
in case of any bankruptcy  proceedings instituted by or against Borrower, and in
case of the  appointment of any receiver for Borrower or Borrower's  business or
<PAGE>
assets,  and in case of any  dissolution  or other  winding up of the affairs of
Borrower,  or of Borrower's  business,  and in all such cases respectively,  the
officers of Borrower and any  assignee,  trustee in  bankruptcy,  receiver,  and
other  person or persons in charge,  are hereby  directed to pay to you the full
amount of your claims against  Borrower  before making any payment to any of the
undersigned,  and so far as may be  necessary  for  that  purpose,  each  of the
undersigned  hereby transfers and assigns to you all of his/her or its rights to
any payment or  distribution  which might  otherwise be coming to him/her or it.
You are hereby  irrevocably  constituted and appointed the  attorney-in-fact  of
each of the  undersigned  to file  any and all  proofs  of claim  and any  other
documents and to take all other  action,  either in your name, or in the name of
the undersigned, or any of them, which in your opinion is necessary or desirable
to enable you to obtain all such payments.

     Each of the  undersigned  agrees  that if part or all of any  claim  of the
undersigned  shall be evidenced by a promissory  note or other  instrument,  the
undersigned  shall cause to be placed  thereon a legend stating that the payment
thereof  is  subordinate  to the  payment  of all  claims on your  part  against
Borrower pursuant to the terms of this Subordination  Agreement, and each of the
undersigned  agrees to mark all books of account in such manner to indicate that
payment  thereof is  subordinated  pursuant  to the terms of this  Subordination
Agreement.

     Each of the  undersigned  further  agrees that in case he, she or it should
take or  receive  any  security  interest  in,  or  lien  by way of  attachment,
execution,  or otherwise on any of the property,  real or personal, of Borrower,
or should  take or join in any  other  measure  or  advantage  contrary  to this
Agreement,  while any claim exists on your part against  Borrower,  you shall be
entitled to have the same vacated,  dissolved and set aside by such  proceedings
at law, or otherwise,  as you may deem proper,  and this Agreement  shall be and
constitute  full and sufficient  ground therefor and shall entitle you to be and
become a party to any  proceedings at law, or otherwise,  initiated by you or by
any other party,  in or by which you may deem it proper to protect your interest
hereunder,  and the party so violating this Agreement shall be liable to you for
all loss  and  damage  sustained  by you by  reason  of such  breach,  including
attorney's fees in any such legal action.

     If the  undersigned,  or any of them, shall receive any payment or property
in violation of this  Agreement,  such payment of property  shall be received by
such  undersigned  in  trust  for  you  and  forthwith  will  be  delivered  and
transferred to you.

     No  subordination  of  obligations  of  Borrower  to the  undersigned  have
previously  been executed by the undersigned for the benefit of anyone else, and
any such subordinations hereafter executed will be, and shall be expressed to be
subject and subordinate to the effect hereof. This Agreement shall be continuing
in effect,  it shall not be cancelled or otherwise  rendered  ineffective by the
payment or discharge at any time of all of Borrower's obligations to you, and it
shall  apply  to any  and all  financial  accommodations  subsequently  granted,

                                       -2-
<PAGE>
renewed or extended by you for Borrower, unless the undersigned shall deliver to
you a written  notice of  revocation as to future  transactions,  at a time when
Borrower  is no  longer  obligated  to you in any  way,  and  while  you are not
committed or  otherwise  obligated to make any loans to, or grant any credit to,
Borrower.

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

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

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Its:
                                             -----------------------------------

                                       -3-
<PAGE>
                ACCEPTANCE OF SUBORDINATION AGREEMENT BY BORROWER

     The  undersigned,  being the Borrower named in the foregoing  Subordination
Agreement,  hereby accepts and consents thereto and agrees to be bound by all of
the provisions  thereof and to recognize all priorities and other rights granted
thereby to IMPERIAL BANK, and to pay said Bank in accordance therewith.

Dated ________________________

                                        SITEK, INCORPORATED, a Delaware
                                        corporation

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

                                        ADVANCED TECHNOLOGY SERVICES, INC.,
                                        an Arizona corporation

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

                                       -4-

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