Document:

<PAGE>   1

               SIXTEENTH AMENDMENT TO LOAN AND SECURITY AGREEMENT
                               AND LOAN DOCUMENTS

THIS SIXTEENTH AMENDMENT TO LOAN AND SECURITY AGREEMENT AND LOAN DOCUMENTS (this
"Amendment"), dated as of December 29, 1999, is between NATIONAL BANK OF CANADA,
a Canadian chartered bank ("Lender"), and CET ENVIRONMENTAL SERVICES, INC., a
California corporation ("Borrower").

                                    Recitals

A.       Lender and Borrower entered into a Loan and Security Agreement dated
         May 29, 1997, as amended by the first through fifteenth amendments (as
         amended, the "Loan Agreement"). Defined terms used herein and not
         defined herein shall have the meaning set forth in the Loan Agreement
         (as amended).

B.       The Loans are secured by the Collateral.

C.       Under the Fourteenth and Fifteenth Amendments to Loan Agreement,
         Borrower was required to make a payment on December 26, 1999 in
         connection with a permanent reduction in the Maximum Loan Availability.
         Borrower has failed to make such payment and such failure constitutes
         an Event of Default (the "Payment Default").

E.       Borrower has requested that Lender waive the Payment Default and modify
         the Set Reduction Amount and extend the Maturity Date and Lender has
         agreed to do so subject to the terms and conditions set forth herein.

                                   Agreement

IN CONSIDERATION of the foregoing and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, Lender and Borrower
agree as follows:

1.       Waiver of Payment Default. Subject to Borrower's performance of all of
         the obligations hereunder and under the Loan Agreement, including
         without limitation, the payment of all amounts due under the Loan
         Agreement, including without limitation the amounts described in
         paragraph 2(c) below, Lender agrees to waive the Payment Default; on
         the conditions that: (a) if Borrower fails to perform any of its
         obligations, Lender's waiver shall be null and void and of no force and
         effect whatsoever; (b) Lender is not waiving any other defaults or
         Events of Default that may have occurred or may hereinafter occur, and
         (c) Lender's waiver of the Payment Default or any other defaults or
         failure to or delay in exercising any rights or remedies shall not be
         deemed a waiver of any subsequent Event of Default or a waiver of its
         right to execute its rights or remedies at any time.

<PAGE>   2

2.       Loan Amount Modification.

         (a) Section 1 of the Loan Agreement is hereby amended by amending and
         restating Section 1(u) of the Loan Agreement to read as follows:

                  1(u)     "Maximum Loan Availability" shall mean the lesser of
                           (a) $l,500,000 minus the Required Reductions or (b)
                           the Revolving Loan Availability, minus (a) the
                           aggregate undrawn face amount of all Letters of
                           Credit and (b) the aggregate amount of all Revolver
                           Reductions.

         (b) Section 1 of the Loan Agreement is hereby amended by amending and
         restating Section 1(hh) of the Loan Agreement (added pursuant to the
         Fourteenth Amendment) to read as follows:

                  1(hh)    "Required Reductions" shall mean the sum of (a) the
                           Set Reduction Amount, plus (b) the Collection
                           Reduction Amount.

         (c) Section 1 of the Loan Agreement is hereby further amended by
         amending and restating Section 1 (ii) of the Loan Agreement (added
         pursuant to the Fourteenth Amendment) to read as follows:

                  1(ii)    "Set Reduction Amount" shall mean the following
                           amounts commencing on the initial dates and
                           continuing during the periods opposite such figures:

<TABLE>
                 ------------------------------------- ----------
                 <S>                                   <C>
                 December 29, 1999 through               $250,000
                 January 6, 2000
                 ------------------------------------- ----------
                 January 7, 2000 through                 $750,000
                 January 13, 2000
                 ------------------------------------- ----------
                 January 14, 2000 through              $1,000,000
                 January 20, 2000
                 ------------------------------------- ----------
                 January 21, 2000 through              $1,300,000
                 January 27, 2000
                 ------------------------------------- ----------
</TABLE>

         (c)      Section 1 of the Loan Agreement is hereby further amended by
                  amending and restating Section 1(jj) of the Loan Agreement
                  (added pursuant to the Fourteenth Amendment) to read as
                  follows:

                                      -2-
<PAGE>   3

                  1(jj)    "Collection Reduction Amount" shall mean an amount
                           equal to 20% of the amount of Accounts collected or
                           payments received on Accounts from December 29, 1999
                           up to and including the business days prior to the
                           date such amount is determined.

         (d)      Borrower acknowledges that the purpose of the Required
                  Reductions and Revolving Reductions is to cause the Revolving
                  Loan to be fully repaid on or before January 28, 2000.
                  Accordingly, the definition of "Maturity Date" set forth in
                  Section 1(t) of the Loan Agreement is amended in its entity to
                  read as follows:

                  "Maturity Date" shall mean the earlier of (a) the date the
                  Liabilities are accelerated pursuant to Section 14 or (b)
                  January 28, 2000.

         (c)      Borrower acknowledges that on each date that there is a
                  decrease in the Maximum Loan Availability as a result of an
                  increase in the Set Reduction Amount, the Collection Reduction
                  Amount or the Revolver Reduction Amount, Borrower must repay
                  the amount by which the outstanding amount of the Revolving
                  Loan exceeds the revised Maximum Loan Availability, including
                  without limitation as a result of the increases in the Set
                  Reduction Amount which takes place on December 30, 1999,
                  January 7, 2000, January 14, 2000, and January 21, 2000, and
                  acknowledges that payments are due on such dates.

         (d)      Borrower agrees that the Borrower's failure to pay any amounts
                  due under the Loan Agreement, including without limitation,
                  any amounts described in paragraph 2(c) above shall constitute
                  an Event of Default under the Loan Agreement and Lender shall
                  be entitled to exercise all remedies in connection therewith.

3.       Assignment of Claims. As a condition of Lender's waiver of the
         Defaults, Borrower agrees, immediately upon request of Lender to
         execute all assignments, confirmations and other agreements necessary
         to comply with the Assignment of Claims Act with respect to Contract
         numbers DACA45-97-D0022, F04699-D-0024, and F41624-97-D-8010 and any
         other contracts requested by Lender.

4.       Loan Documents.

         a.       Lender and Borrower agree that any and all notes or other
                  documents executed in connection with the Loans (collectively,
                  the "Loan Documents") are hereby amended to reflect the
                  amendments set forth herein and that no further amendments to
                  any Loan Documents are required to reflect the foregoing.

                                       -3-
<PAGE>   4

         b.       All references in any document to the Loan Agreement or any
                  other Loan Document shall refer to the Loan Agreement or such
                  Loan Document as amended pursuant to this Amendment.

5.       Amendment Fee. As a condition to Lender's performing its obligations
         under this Amendment, Borrower shall pay to Lender an amendment fee
         equal to $15,000 payable immediately upon the execution of this
         Amendment. Such amendment fee shall be fully earned as of the date
         hereof, but $10,000 of such fee will be refunded to Borrower upon
         payment in full of the Loan and all other amounts due Lender on or
         prior to January 28, 2000.

6.       Representations and Warranties. Borrower hereby certifies to the Lender
         that as of the date of this Amendment (taking into consideration the
         transactions contemplated by this Amendment), all of Borrower's
         representations and warranties contained in the Loan Agreement and all
         Loan Documents are true, accurate and complete in all material
         respects, and no Event of Default (other than the Defaults) or event
         that with notice or the passage of time or both would constitute an
         Event of Default has occurred under the Loan Agreement or any Loan
         Document. Without limiting the generality of the foregoing, Borrower
         represents and warrants that the execution and delivery of this
         Amendment has been authorized by all necessary action on the part of
         Borrower, that the person executing this Amendment on behalf of
         Borrower is duly authorized to do so and that this Amendment
         constitutes the legal, valid, binding and enforceable obligation of
         Borrower.

7.       Additional Documents. Borrower shall execute and deliver to Lender at
         any time and from time to time such additional amendments to the Loan
         Agreement and the Loan Documents as the Lender may request to confirm
         and carry out the transactions contemplated hereby or to confirm,
         correct and clarify the security for the Loan.

8.       Continuation of the Loan Agreement, Etc. Except as specified in this
         Amendment, the provisions of the Loan Agreement and the Loan Documents
         (as previously amended) shall remain in full force and effect, and if
         there is a conflict between the terms of this Amendment and those of
         the Loan Agreement or the Loan Documents (as previously amended), the
         terms of this Amendment shall control.

9.       Miscellaneous.

         a.       This Amendment shall be governed by and construed under the
                  laws of the State of Colorado and shall be binding upon and
                  inure to the benefit of the parties hereto and their
                  successors and permissible assigns.

         b        This Amendment may be executed in two or more counterparts,
                  each of which shall be deemed an original and all of which
                  together shall constitute one instrument.

                                      -4-
<PAGE>   5

         c.       This Amendment and all documents to be executed and delivered
                  hereunder may be delivered in the form of a facsimile copy,
                  subsequently confirmed by delivery of the originally executed
                  document.

         d.       This Amendment constitutes the entire agreement between
                  Borrower and the Lender concerning the subject matter of this
                  Amendment and supercedes the Forbearance Letter, which
                  Forbearance Letter is no longer of any force or effect. This
                  Amendment may not be amended or modified orally, but only by a
                  written agreement executed by Borrower and the Lender and
                  designated as an amendment or modification of the Loan
                  Agreement as amended by this Amendment.

EXECUTED as of the date first set forth above.

                                       BORROWER

                                       CET ENVIRONMENTAL SERVICES,
                                       INC., a California corporation

                                       By: /s/ DALE W. BLECK
                                          --------------------------------------
                                       Name: Dale W. Bleck
                                            ------------------------------------
                                       Title: CFO
                                             -----------------------------------

                                       LENDER:

                                       NATIONAL BANK OF CANADA, a
                                       Canadian chartered bank

                                       By:
                                          --------------------------------------
                                          Allen C. Balk
                                          Vice President

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

                                       -5-<PAGE>   1

                     ASSET PURCHASE AND ASSIGNMENT AGREEMENT

                          DATED AS OF OCTOBER 21, 1999

                                  BY AND AMONG

                        CET ENVIRONMENTAL SERVICES, INC.

                                       AND

                                 IT CORPORATION

<PAGE>   2

ASSET PURCHASE AND ASSIGNMENT AGREEMENT, dated as of October 21, 1999, by and
among CET ENVIRONMENTAL SERVICES, INC., a California corporation ("CET")
("Seller"), and IT CORPORATION, a California corporation ("Purchaser").

                                   WITNESSETH

     WHEREAS, the Seller is in the business of providing environmental
remediation services and related services to public and private customers (the
"Business");

     WHEREAS, the Seller desires to sell and assign to Purchaser, and Purchaser
desires to purchase and assume from the Seller, certain of the assets associated
with the Business, upon the terms and conditions herein set forth.

     NOW, THEREFORE, in consideration of the mutual covenants and agreements
contained herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

     1.   Assets, Contracts and Rights to be Acquired. Subject to the terms and
          conditions herein set forth, at the closing (as hereinafter defined in
          Section 3.B), Seller agrees to sell, assign, transfer and convey to
          Purchaser, free and clear of all liens, claims rights, interests,
          charges, pledges and encumbrances (collectively, "Liens") of every
          kind, nature and description, and Purchaser agrees to purchase,
          acquire and assume from Seller as of the Closing (but subject to
          satisfaction of the Condition Precedent, as hereinafter defined) all
          right, title and interest of Seller in and to the following assets,
          contracts and rights used in or pertaining to part of the Business:

          A.   Contract 68-W7-0016 (effective January 9, 1997) with the United
               States Environmental Protection Agency ("EPA") related to the
               provisions of Emergency and Rapid Response Services for Regions
               6, 8 and 9 of the EPA, together with applicable delivery orders,
               purchase orders, and other agreements, if any, entered into in
               the ordinary course in connection with the performance of the
               work under such contracts and listed on Schedule "1-A." and
               copies of which have or shall be delivered to the Purchaser on or
               before the Closing (collectively, the "EPA Contracts") including
               the right to Gross Revenues thereunder from the date of closing;

          B.   The right of Purchaser to enter into a subcontract with Seller to
               perform on behalf of Seller the work remaining under Delivery

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               Order 01-10-016 of U.S. EPA Contract 68-S7-000l should Purchaser
               so elect at the time of Closing.

          C.   Sellers' owned machinery, equipment, tools, uniforms, protective
               gear, office furniture and equipment, wherever located, used in
               connection with and necessary for the performance of the EPA
               Contracts, a schedule of which is annexed hereto as Schedule
               "1.C." (the "EPA Contract Equipment");

          D.   Except as set forth in Section 2 below,

               (i)     To the extent assignable, any and all rights of Seller to
                       seek indemnification, reimbursement, contribution,
                       insurance for or other recourse against third parties
                       (including insurers), with respect to any environmental,
                       products, workers compensation or other liability
                       relating to or arising from the performance by the Seller
                       or their subcontractors of the EPA Contracts prior to the
                       Closing or, the ownership, possession, use or operation
                       of any Acquired Asset (including, any damage thereto)
                       (collectively, the "Insurance and Indemnity Rights");

               (ii)    All unliquidated and liquidated claims and causes of
                       action of every kind and description which Seller may
                       have against any third party arising out of, in
                       connection with, or relating to any item included within
                       the definition of Acquired Assets for damages actually
                       suffered by, or claims brought against, Purchaser at or
                       after the Closing notwithstanding when the event giving
                       rise to such damages or claims occurred (including any
                       damage to any of the Acquired Assets) (collectively, the
                       "Claim Rights");

               (iii)   To the extent transferable, all governmental permits,
                       licenses and other related agreements or instruments
                       held by Seller to which Seller is a party, in each case
                       which are material to, or are used or materially useful
                       in, the ownership or operation of the Acquired Assets;

          E.   Certain ancillary assets needed in connection with or, necessary
               for the performance of the EPA Contracts, and other similar
               assets used in the performance of the EPA Contracts, a schedule
               of which is annexed hereto as Schedule "1.E." (the "Ancillary
               Assets"). Purchaser agrees to provide Seller reasonable access to
               such assets in connection with performance of its obligations
               relating to the EPA Contracts and the other assets transferred;
               and

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<PAGE>   4

          F.   The right to assume upon closing (as defined in Section 3.B) the
               lease for Seller's facility at 170 West Dayton, Edmonds,
               Washington annexed at Schedule 1.F hereto.

     The assets, contracts and rights to be sold and assigned by Seller to
     Purchaser pursuant to this Section 1 are hereinafter collectively referred
     to as the "Acquired Assets."

     2.   Excluded Assets. Except for the Acquired Assets set forth in Section 1
          above or as otherwise specifically provided for herein, Purchaser
          shall not purchase, assume, acquire, or otherwise obtain rights in and
          to any other assets of the Seller, including, without limitation:

          A.   Any and all of Seller's other machinery, equipment, inventory,
               tools, uniforms, protective gear, office furniture and equipment,
               real property, patents, trade names, and general intangibles,
               wherever located, not described in Section 1, specifically
               equipment used by Seller's offices in Regions 6, 8, and 9; and

          B.   All cash, funds in accounts, security deposits, revenues and
               receivables, including, without limitation, any unbilled
               receivables due from the EPA under the EPA Contracts for any work
               performed, services rendered or expenses or costs incurred up to
               and including, the day of the Closing together with claims,
               refunds, reimbursements or credits under other contracts (the
               "Seller Receivables"); and

          C.   Any premium refunds or credits owed under the Seller's insurance
               or indemnity policies or any tax refunds owed to the Seller
               whether or not related to the EPA Contracts.

               In addition, Seller shall retain any Insurance and Indemnity
               Rights and/or Claim Rights which the Seller needs or requires, or
               are materially useful, in (a) recovering, collecting, receiving
               or obtaining reimbursement from or by the EPA or any third party
               for expenses incurred prior to the Closing by Seller related to
               the Acquired Assets, (b) collection of Seller Receivables, but
               only to the extent so needed, required or materially useful, or
               (c) defending and/or paying and/or satisfying any Non-Assumed
               Liability Claim (defined in Section 3.D. below) or other
               liability.

               The excluded assets, contracts and rights set forth in this
               Section 2 are hereinafter collectively referred to as the
               "Excluded Assets." The Parties acknowledge that the EPA may make
               payments to Purchaser or Seller to which the other Party is
               entitled. In such case, the party receiving the payment shall
               hold in trust the portion

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<PAGE>   5

               of such payment properly payable to the other party and shall
               promptly forward such sums to the party entitled thereto.

     3.   Acquisition of Acquired Assets and Acquired Liabilities; Retention of
          Liabilities by Seller.

          A.   At the Closing, Seller and Purchaser shall execute:

               (i)     A Bill of Sale, Assignment and Assumption Agreement for
                       the Acquired Assets, substantially in the form annexed
                       hereto as Schedule "3.A.(i)"

               (ii)    Such other instruments of transfer as Purchaser may
                       reasonably deem necessary to vest in Purchaser sufficient
                       title to the Acquired Assets free and clear of Liens.

          B.   Closing. The closing of this transaction (the "Closing") shall
               occur not more than five (5) business days after receipt by the
               Parties of written notification from the EPA of the approval of
               the Novation of EPA Contract 68-W7-0016, or at such other date,
               time and place as may be mutually agreed upon by the parties
               hereto (the "Closing Date") at the offices of the IT Corporation,
               Englewood, CO. The parties hereto agree that time is of the
               essence with respect to the Closing.

          C.   Assumed Obligations. Purchaser shall not assume or become liable
               for the payment of any debts, liabilities, obligations, setoffs,
               defenses, losses, wages, employee benefits, COBRA payments,
               claims, if any, under the Workers Adjustment, Retraining and
               Notification Act, 29 U.S.C. Section 2101, et seq. or other
               applicable law, benefit plans, 401k pension plans or collective
               bargaining agreements (collectively, "Workers' Claims"), accounts
               payable, bank indebtedness, mortgages, warranties, fines,
               penalties, or any other obligations of the Seller or any
               affiliate of the Seller, whether the same are known or unknown,
               now existing or hereafter arising of whatever nature or
               character, whether absolute or contingent, liquidated or
               disputed, except for certain liabilities arising with respect to
               the EPA Contracts and described on the Schedule of Assumed
               Obligations annexed hereto as Schedule "3.C." (the "Assumed
               Liabilities").

          D.   Seller shall indemnify and defend Purchaser against all claims
               (each, a "Non-Assumed Liability Claim") for liabilities or
               obligations that are not Assumed Liabilities, including, without
               limitation, Workers' Claims, claims, set-offs or offsets by the
               EPA under the EPA Contracts relating to work performed by Seller

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<PAGE>   6

               prior to the Closing Date, or claims by third parties or
               creditors of Seller relating to the conduct by Seller of their
               business prior to Closing, in accordance with the following
               procedures:

               (i)     In the event a Non-Assumed Liability Claim is asserted
                       against Purchaser, Purchaser shall notify Seller, in
                       writing, as soon as practicable after discovery of such
                       Non-Assumed Liability Claim, specifying in reasonable
                       detail the nature of the claim and the amount sought. The
                       Seller shall have the right to assume or direct, through
                       counsel of their own choosing, the defense, prosecution
                       or settlement of any Non-Assumed Liability Claim promptly
                       upon written notice to Purchaser, at their sole cost and
                       expense. If the seller elects to assume the defense of
                       any Non-Assumed Liability Claim, Seller shall keep
                       Purchaser informed as to the status of such litigation or
                       other action and shall not settle such Non-Assumed
                       Liability Claim in a manner which would impose any
                       material burden or obligation on Purchaser without the
                       consent of Purchaser, which consent shall not be
                       unreasonably withheld. The Purchaser may, at its own
                       expense, retain separate counsel to participate in such
                       defense. Purchaser shall provide Seller with such access
                       to its records and personnel relating to any such
                       Non-Assumed as is necessary to defend such Non-Assumed
                       Liability Claim during normal business hours and shall
                       otherwise cooperate with the Seller in the defense or
                       settlement thereof. Prior to resolution of the
                       Non-Assumed Liability Claim, Purchaser shall not pay, or
                       permit to be paid, or seek to offset, reserve for,
                       setoff, deduct or seek a credit against the Payment for
                       all or any part of the Non-Assumed Liability Claim,
                       unless the Seller consents in writing to such payment. If
                       the Seller fails to defend, or if after commencing or
                       undertaking any such defense, the Seller fails to
                       prosecute or withdraws from such defense, the Purchaser
                       shall have the right to defend such claim and to be
                       reimbursed its defense costs (including reasonable
                       counsel fees and expenses) related thereto by Seller,
                       provided that Purchaser shall use its best efforts to
                       settle such claim for the lowest amount possible, and
                       provided that Purchaser shall not be obligated to enter
                       into a settlement pursuant to which it will be required
                       to perform material nonmonetary obligations. Purchaser
                       shall (a) give the Seller prompt written notice (i) of a
                       proposed settlement offer made by the other party, prior
                       to acceptance of such offer or (ii) of an offer Purchaser
                       proposes to make, prior to making such offer, and (b)

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                       request that the Seller consent thereto, which consent
                       shall not be unreasonably withheld. In the event the
                       Seller is unwilling to approve such proposed settlement,
                       the Seller shall have the right to assume or reassume
                       said defense. In the event that Seller neither approves
                       the proposed settlement or assumes or reassumes the
                       defense, Purchaser shall have the right to pay such
                       Non-Assumed Liability Claim at the settled amount and
                       recover the amount of such payment from Seller in
                       accordance with the terms of this Agreement. Any judgment
                       entered against the Purchaser on a Non-Assumed Liability
                       Claim after compliance with this subsection will be fully
                       reimbursed by Seller.

               (ii)    In the event that the EPA notifies Purchaser that an
                       audit reveals an overpayment to Seller for work performed
                       or expenses incurred prior to Closing and demands
                       repayment of such amounts or offsets such amounts against
                       payments owed to Purchaser pursuant to the EPA Contracts,
                       Purchaser shall notify Seller of such Non-Assumed
                       Liability Claim as soon as practicable after Purchaser
                       receives notice of such Non-Assumed Liability Claim. The
                       Seller shall have the right to negotiate with the EPA or
                       to participate in applicable dispute resolution
                       mechanisms, at their sole cost and expense. Purchaser
                       shall not pay the EPA for such Non-Assumed Liability
                       Claim without the consent of Seller, unless the failure
                       to pay such Non-Assumed Liability Claim will subject the
                       Purchaser to penalties or affect its ability to bid on or
                       obtain other government contracts or orders, in which
                       case the Purchaser may recover the amount paid by it with
                       respect to such Non-Assumed Liability Claim from Seller.
                       In the event that Seller cannot resolve such Non-Assumed
                       Liability Claim within thirty (30) days after the EPA has
                       withheld, offset or set funds with respect to such
                       Non-Assumed Liability Claim from funds payable to the
                       Purchaser, the Purchaser may recover such withheld,
                       offset or set-off amount from Seller in accordance with
                       this Agreement.

     4.   Purchase Price and Terms.

          A.   As consideration for the sale, assignment and delivery of the
               Acquired Assets by Seller, Purchaser shall assume the Assumed
               Liabilities and pay to Seller the following amount (collectively,
               the "Purchase Price"):

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<PAGE>   8

               (i)     At Closing, One Million, Three Hundred Thousand Dollars
                       ($1,300,000) in cash, paid by wire transfer, bank
                       transfer or bank or cashier's check (the "Payment");

     5.   Office Leases and Other EPA Contract Equipment.

          A.   Seller will obtain necessary written consent of the Landlord of
               the Edmonds Washington lease and pay any charges of the Landlord
               related to obtaining such consent to Purchaser's assumption of
               that lease.

          B.   In the event the Purchaser and the Seller jointly determine,
               after the date of this Agreement, that the Seller owns any
               machinery, equipment, tools, uniforms, protective gear, office
               furniture or equipment, that is not listed as EPA Contract
               Equipment on Schedule 1.C. annexed hereto, but is used in
               connection with or is necessary for the performance of the EPA
               Contracts and is not otherwise required by the Seller in their
               Business (the "Unscheduled EPA Contract Equipment"), Purchaser
               shall have the right, but not the obligation, for a period of
               thirty (30) days after the Closing (which period may be extended
               upon the written consent of the Seller) to purchase, free and
               clear of any and all Liens, for cash, or as otherwise mutually
               agreed, any such Unscheduled EPA Contract Equipment at a mutually
               agreeable price.

          C.   Purchaser shall be entitled to use, in connection with its
               performance of the EPA contracts, Sellers' management information
               system computer facilities located at Englewood, CO and any
               related software, from and after the Closing, without charge, as
               long thereafter as the system and computer are operated by the
               Seller; provided, however, that such access shall be limited to
               read only information and delivery order specific data directly
               related to the EPA Contracts. Notwithstanding the preceding
               sentence, Seller shall give Purchaser prompt notice upon learning
               that such facility will become unavailable and shall cooperate
               with Purchaser to ensure continued availability of all data on
               such system.

     6.   Leased Equipment Used to Perform the EPA Contracts.

          A.   By notice to Seller up to 30 days after the Closing, Purchaser
               shall have the option, but not the obligation, to the extent
               assumable, to elect to assume any or all of Sellers' lease
               obligations for leased equipment used to perform any jobs or work
               orders under the EPA Contracts being performed at the time of the
               Closing, all of which

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<PAGE>   9

               leases, and the periodic rental obligations thereunder, are
               described on Schedule "6.A." annexed hereto (the "EPA Leased
               Equipment Leases"). Seller shall take all reasonably necessary
               action to assume and assign the EPA Leased Equipment Leases, to
               include satisfying any cure obligations.

     7.   Transfer Taxes.

          A.   All sales or transfer taxes, if any, including, but not limited
               to, document recording fees, sales and excise taxes, arising out
               of or in connection with the consummation of the transactions
               contemplated hereby shall be paid by the Purchaser.

     8.   Allocation of Purchase Price.

          A.   The parties agree to allocate the aggregate consideration
               received by Sellers with respect to the acquired assets in
               accordance with Section 1060 of the Internal Revenue Service
               Code, as mutually agreed. Subject to the requirements of any
               applicable tax law or election, all such mutually agreed to
               allocation shall be used by each party in preparing any filings
               required pursuant to Section 1060 of the Code or any similar
               provisions of state or local law and all relevant Income Tax
               Returns.

     9.   Employees.

          A.   Seller and Purchaser agree to reasonably cooperate regarding
               communications made to the employees of the Seller concerning the
               transactions contemplated by this Agreement, understanding that
               Purchaser may wish to contact those employees of the Seller that
               Purchaser desires to hire or to whom it wishes to offer
               employment. Notwithstanding the foregoing, Purchaser shall have
               no obligation to hire or offer to hire any employee of the
               Seller. With respect to any employee of the Seller, Purchaser
               shall have no liability for any wages, severance benefits,
               vacation benefits, COBRA, pension, Workers' Claim, or 401k
               obligation, collective bargaining agreements or any other
               benefits owed by the Seller to such employee.

     10.  Conditions Precedent.

          A.   All obligations of the Purchaser under this Agreement are subject
               to the fulfillment of each of the following conditions prior to
               or at the Closing, any of which conditions may be waived by the
               Purchaser prior to or at the Closing:

                                        9
<PAGE>   10

               (i)     Representations and Warranties. All of the
                       representations, warranties and certifications of the
                       Seller contained in this Agreement shall be true, correct
                       and complete in all material respects on the Closing Date
                       as though all such representations, warranties and
                       certifications were made and given on and as of the
                       Closing Date.

               (ii)    Performance by the Seller. Seller shall have performed
                       and complied with all covenants, agreements and
                       conditions required to be performed or complied with by
                       them pursuant to this Agreement prior to or at the
                       Closing.

               (iii)   No Restraint on Transactions. There shall be no effective
                       injunction, judgment, decree, restraining order or order
                       of any nature issued against Seller or Purchaser by a
                       court or government agency of competent jurisdiction
                       which shall direct that this Agreement, or any of the
                       transactions contemplated by this Agreement not be
                       consummated as herein or therein provided, nor shall any
                       litigation or other proceeding seeking to enjoin the
                       Closing or any of the transactions contemplated by this
                       Agreement have been instituted or threatened by any
                       Federal, state or local governmental agency of
                       department. No request for voluntary postponement of the
                       Closing Date shall have been received by any party to
                       this Agreement from any Federal, state or local
                       governmental agency or department.

               (iv)    No Material Adverse Change. Since September 23, 1999
                       there shall not have been any material adverse change in
                       the condition of the Acquired Assets that is material in
                       the context of this transaction.

               (v)     Novation Approval. The effectiveness of the sale and
                       assignment of the acquired assets, the assumption by
                       Purchaser of the Assumed Liabilities, and all other
                       transactions contemplated by this Agreement shall be
                       subject to the condition that the EPA shall have
                       consented in writing to the assignment or novation from
                       Seller to Purchaser of the EPA Contract 68-W7-0016 by
                       November 30, 1999.

               (vi)    Other Consents. The Purchaser or Seller shall have
                       obtained such other consents, estoppels and
                       authorizations, in form and substance satisfactory to the
                       Purchaser, as shall

                                       10
<PAGE>   11

                       be reasonably necessary in order for the transactions
                       contemplated by this Agreement to be consummated,
                       including, without limitation, the consents of any
                       secured Parties or creditors.

          B.   All obligations of the Seller under this Agreement are subject to
               the fulfillment of each of the following conditions prior to or
               at the Closing, any of which conditions may be waived by the
               Seller prior to or at the Closing:

               (i)     The representations, warranties and certifications of
                       Purchaser contained in this Agreement shall be true,
                       correct and complete in all material respects on the
                       Closing Date as though all such representations,
                       warranties and certifications were made and given on and
                       as of the Closing Date.

     11.  Representations of Sellers.

          A.   Seller hereby represents and warrants to the Purchaser as
               follows:

               (i)     Organization. CET is a corporation duly organized,
                       validly existing and in good standing under the laws of
                       its respective state of incorporation and has all
                       requisite power and authority, corporate or otherwise, to
                       carry on and conduct its business as now being conducted
                       and to own or lease its properties and assets.

               (ii)    Authorization. Seller has the right, power and capacity
                       to execute, deliver and perform this Agreement and to
                       consummate the transactions contemplated hereby. The
                       execution, delivery and performance of this Agreement and
                       the consummation of the transactions contemplated hereby,
                       have been duly authorized by all necessary action on the
                       part of Seller's Board of Directors and this Agreement
                       and validly executed and delivered by Sellers and
                       constitute Seller's legal, valid and binding obligation,
                       enforceable in accordance with its terms.

               (iii)   Ownership of Acquired Assets.

                       (x)  To the best of the knowledge, information and belief
                            of the officers of Seller, the Schedules referenced
                            in Schedules 1.A, 1.C. and 1.E hereof set forth a
                            complete and accurate list and description of

                                       11
<PAGE>   12

                            Acquired Assets that are being sold or assigned to
                            Purchaser;

                       (y)  Seller has good and valid title to and owns all of
                            the Acquired Assets being sold to Purchaser
                            hereunder, including all rights under the EPA
                            Contracts and the Ancillary Assets.

               (iv)    No Brokerage. No finder or broker was consulted by Seller
                       or was involved in the sale and assignment transactions
                       contemplated by this Agreement or has any other basis
                       upon which to claim a fee or commission, except Seller
                       retained a broker, Sanders Morris & Mundy, and will be
                       solely responsible for paying all fees or commissions.

               (v)     Compliance with Law. Seller has not received any notice
                       of, and has no actual knowledge of, any claimed violation
                       with respect to any law, ordinance, regulation or court
                       order applicable to the Acquired Assets which remains
                       uncured, except as disclosed to in this Agreement and
                       applicable Schedules thereto.

               (vi)    Labor Matters. Seller is not a party to, or bound by, any
                       collective bargaining agreements, and no representation
                       question exists with respect to Seller's employees except
                       as set forth on Schedule 11.A.(vi). Seller is not
                       subject to any liabilities to its employees under the
                       Worker Adjustment and Retraining Notification Act (the
                       "WARN Act"), 29 U.S.C. Section 2101 et. seq.

               (vii)   Permits. Schedule 11.A.(vii) sets forth a true, correct
                       and complete list of all licenses and permits in
                       connection with the performance of the EPA Contracts (the
                       "Permits") including, without limitation, those issued or
                       required under Environmental Laws (as hereinafter
                       defined) and those relating to the occupancy or use of
                       the Edmonds Office issued to or held by Sellers, except
                       for those the absence of which would not have any
                       material adverse effect on the assets, business,
                       financial condition, results of operations or future
                       prospects of the Seller taken as a whole. Such listed
                       Permits are the only Permits that are required for the
                       Seller to perform the EPA Contracts, except for those the
                       absence of which would not have any material adverse
                       effect on the assets, business, financial condition,
                       results of operations or future prospects of Seller

                                       12
<PAGE>   13

                       in the performance of the EPA Contracts. Each such Permit
                       is in full force and effect and, to the knowledge of
                       Seller, no suspension or cancellation of such Permit is
                       threatened and there is no reasonable basis for believing
                       that any such Permit will not be renewable upon
                       expiration. Except as set forth in Schedule 11.A.(viii),
                       each such Permit is assignable by the Seller to the
                       Purchaser without the consent or approval of any party
                       and will continue in full force and effect following the
                       Closing except to the extent such Permit is not
                       assignable or assumable by law. To the extent a Permit is
                       assignable, Seller agrees to assist in the assignment of
                       such Permit by Purchaser.

               (viii)  Environmental Matters.

                       (a)  Except as set forth in Schedule 11.A.(viii)(a),
                            Seller has complied in all material respects with
                            all applicable Environmental Laws (as defined below)
                            in performing the EPA Contracts. There is no pending
                            or, to the knowledge of Seller, threatened civil or
                            criminal litigation, written notice of violation,
                            formal administrative proceeding, or investigation,
                            inquiry or information request by any Governmental
                            Entity, relating to any Environmental Law involving
                            the EPA Contracts. For purposes of this Agreement,
                            "Environmental Law" means any federal, state or
                            local law, statute, rule or regulation or the common
                            law relating to the environment or occupational
                            health and safety, including, without limitation,
                            any statute, regulation or order pertaining to (i)
                            treatment, storage, disposal, generation and
                            transportation of industrial, toxic or hazardous
                            substances or solid or hazardous waste; (ii) air,
                            water and noise pollution; (iii) groundwater and
                            soil contamination; (iv) the release or threatened
                            release into the environment of industrial, toxic
                            or hazardous substances, or solid or hazardous
                            waste, including, without limitation, emissions,
                            discharges, injections, spills, escapes or dumping
                            of pollutants, contaminants or chemicals; (v) the
                            protection of wildlife, marine sanctuaries and
                            wetlands, including, without limitation, all
                            endangered and threatened species; (vi) storage
                            tanks, vessels and containers; (vii) underground and
                            other storage tanks or vessels, abandoned, disposed
                            or discarded barrels, containers and other closed
                            receptacles;

                                       13
<PAGE>   14

                            (viii) health and safety of employees and other
                            persons; and (ix) manufacture, processing, use,
                            distribution, treatment, storage, disposal,
                            transportation or handling of pollutants,
                            contaminants, chemicals or industrial, toxic or
                            hazardous substances or oil or petroleum products or
                            solid or hazardous waste. As used herein, the terms
                            "release" and "environment" shall have the meaning
                            set forth in the federal Comprehensive Environmental
                            Compensation, Liability and Response Act of 1980
                            ("CERCLA").

                       (b)  Except as set forth in Schedule 11.A.(viii)(b),
                            there have been no releases of any Materials of
                            Environmental Concern (as defined below) into the
                            environmental at any parcel of real property or any
                            facility used in the performance of the EPA
                            Contracts formerly or currently owned, operated or
                            controlled by the Seller. With respect to any such
                            releases of Materials of Environmental Concern,
                            Seller has given all required notices to
                            Governmental Entities (true, correct and complete
                            copies of which have been previously provided to the
                            Purchaser). Seller is not aware of any releases of
                            Materials of Environmental Concern at parcels of
                            real property or facilities used in the performance
                            of the EPA Contracts owned, operated or controlled
                            by Seller. For purposes of this Agreement,
                            "Materials of Environmental Concern" means any
                            chemicals, pollutants or contaminants, hazardous
                            substances (as such term is defined under CERCLA),
                            solid wastes and hazardous wastes (as such terms
                            are defined under the Federal Resources Conservation
                            and Recovery Act), toxic materials, oil or petroleum
                            and petroleum products.

                       (c)  Schedule 11.A.(viii)(c) sets forth a true, correct
                            and complete list of all environmental reports,
                            investigations and audits (whether conducted by or
                            on behalf of the Seller or a third party, and
                            whether done at the initiative of the Sellers or
                            directed by a Governmental Entity or other third
                            party) issued or conducted during the past five
                            years relating to the Edmonds Office. True, correct
                            and complete copies of each such report, or the
                            results of each such investigation or audit, which
                            are in the possession,

                                       14
<PAGE>   15

                            or control of Seller, have previously been provided
                            to the Purchaser.

                       (d)  Schedule 11.A.(viii)(d) sets forth a true, correct
                            and complete list of all of the solid and hazardous
                            waste transporters and treatment, storage and
                            disposal facilities used in the performance of the
                            EPA Contracts that have been owned or operated by
                            Seller since September 23, 1999. Seller is not aware
                            of any material environmental liability against
                            Seller with respect to any such transporter or
                            facility.

               (ix)    Government Contracts. Except as disclosed in Schedule
                       11.A.(ix), Sellers have not been suspended or debarred
                       from bidding on contracts or subcontracts with any
                       governmental entity; no such suspension or debarment has
                       been initiated or, to the knowledge of Sellers,
                       threatened; and the consummation of the transactions
                       contemplated by this Agreement will not result in any
                       such suspension or debarment of any Seller or the
                       Purchaser (assuming that no such suspension or debarment
                       will result solely from the identity of the Purchaser).
                       The Sellers have not been or are not now being audited or
                       investigated relative to the EPA Contracts by the United
                       States Government Accounting Office, the United States
                       Department of Defense or any of its agencies, the Defense
                       Contract Audit Agency, the United States Department of
                       Justice, the Inspector General of any United States
                       governmental entity, or any prime contractor with a
                       governmental entity; nor, to the knowledge of the
                       Sellers, has any such audit or investigation been
                       threatened except with respect to the Government Contract
                       Suspension referenced in Schedule 11.A.(ix). Except as
                       disclosed in Schedule 11.A.(ix), to the knowledge of the
                       Sellers, there is no valid basis for (a) the suspension
                       or debarment of the Sellers from bidding on contracts or
                       subcontracts with any Governmental Entity or (b) any
                       claim pursuant to an audit or investigation by any of the
                       entities named in the previous sentence with respect to
                       the EPA Contracts. Seller is not a party to any
                       agreement, contract or commitment, which requires such
                       any Seller to obtain or maintain a security clearance
                       with any Governmental Entity.

     12.  Price Adjustment for Acquired Assets. To the extent it is discovered
          prior to transfer of title or ownership to Purchaser that any Acquired
          Assets

                                       15
<PAGE>   16

                       listed on the Schedules annexed hereto are not owned by
                       the Sellers as of the Closing or Sellers are otherwise
                       unable to transfer to Purchaser title to such Acquired
                       Assets, free and clear of Liens, Seller shall retain such
                       asset and Purchaser shall be entitled to a credit against
                       the payment on the value of such asset.

     13.  Representations of Purchaser.

          A.   Purchaser hereby represents and warrants to the Sellers as
               follows:

               (i)     Organization. Purchaser is a corporation, duly organized,
                       validly existing and in good standing under the laws of
                       the state of California and has all requisite power and
                       authority, corporate or otherwise, to carry on and
                       conduct its business as now being conducted and to own or
                       lease its properties and assets.

               (ii)    Authorization. Purchaser has the right, power and
                       capacity to execute, deliver and perform this Agreement
                       and to consummate the transactions contemplated hereby.
                       The execution, delivery and performance of this
                       Agreement, and the consummation of the transactions
                       contemplated hereby, have been duly and validly executed
                       and delivered by Purchaser and constitute Purchaser's
                       legal, valid and binding obligation, enforceable in
                       accordance with its terms.

               (iii)   Qualification. As of the Closing, Purchaser (x) (1) has
                       performed services for the EPA within the past two (2)
                       years, and (2) has not had a contract with the EPA or a
                       contractor of the EPA be terminated for cause within the
                       past five (5) years, or (y) is unaware of any reason why
                       the EPA would not approve an assignment (or novation) of
                       the EPA Contracts to Purchaser.

               (iv)    No Brokerage. No broker was involved in the sale and
                       assignment transactions contemplated by the Agreement.

     14.  Warranties by Seller. Purchaser acknowledges that Seller is making no
          express or implied warranty or representation as to condition,
          merchantability or suitability as to any of the Acquired Assets and
          that Purchaser takes the Acquired Assets of Sellers "as is" and "where
          is"; provided, however, that Purchaser shall not be obligated to take
          title to:

                                       16
<PAGE>   17

          (a)  contaminated EPA Contract Equipment not located on an active EPA
               Contract job site, unless Sellers agree to cause or pay for the
               decontamination of same; or

          (b)  any EPA Contract Equipment which is incapable of being used for
               the original purpose for which it was intended.

     15.  Cooperation.

          A.   Prior to Closing, Seller and Purchaser agree to cooperate in all
               material respects with each other to afford access to their
               respective personnel and representatives, and they shall provide
               such information concerning the Business, the EPA Contracts and
               any Acquired Assets that may be reasonably requested by the other
               party.

          B.   Purchaser agrees to cooperate and assist, without charge, with
               any reasonable request by Seller to provide at Seller's expense,
               copies of records, documents or other information needed in
               connection with an audit or examination by the EPA, other
               government agency or third party and not otherwise, whether
               formal or informal, of any jobs or work performed or invoices
               rendered by the Sellers prior to closing.

          C.   Sellers and Purchaser shall cooperate and assist each other in
               attempting to obtain the approval of the novation of the EPA
               contracts from the EPA and all other consents or approvals
               required hereunder.

     16.  Records Maintenance.

          From and after the date of this Agreement, the parties shall preserve
          all books, records, and other documents, materials, and information
          relevant to the representations, warranties, and covenants set forth
          in this Agreement for a period of six years following the date of this
          Agreement or for such larger period as the rights of the parties
          hereunder may exist.

     17.  Notices. All notices, requests, demands and other communications
          provided for by this Agreement shall be in writing and transmitted by
          facsimile or delivered in person, or mailed by registered or certified
          mail, postage prepaid, addressed to the parties, at the following
          address or to such changed address as such party may have fixed for
          such notices. Any notice to change of address shall be effective only
          upon receipt. All notices given by facsimile transmissions shall be
          deemed given on the date of delivery; all notice given by registered
          or certified mail shall be deemed given on the date placed in the
          mail.

                                       17
<PAGE>   18

          If to Seller:       CET Environmental Services Inc.
                              7032 S. Revere Parkway
                              Englewood, CO 80112
                              Attention: Steven H. Davis
                              Telephone: 720/875-9115
                              Facsimile: 720/875-9114

          If to Purchaser:    IT Corporation
                              2790 Mosside Boulevard
                              Monroeville, PA 15146-2792
                              Attention: Paul C. Smith, Esq.
                              Telephone: 412/372-7701
                              Facsimile: 412/858-3997

     18.  Noncompetition. Seller agrees that it will not seek, either directly
          or indirectly, as a prime contractor or subcontractor, to obtain
          contract or subcontract awards for the performance of emergency and
          rapid response service with the U.S. Environmental Protection Agency
          for a period of five (5) years from the date of this Agreement.

     19.  Entire Agreement. This Agreement, including the Schedules hereto, sets
          forth the entire agreement and understanding between and among the
          parties as to the subject matter hereof and merges and supersedes all
          prior discussions, arrangements and understandings of every kind and
          nature between them, and no party hereto shall be bound by any
          condition, definition, warranty or representation other than as
          expressly provided for in this Agreement or as may be on a date
          subsequent to the date hereof duly set forth in writing signed by an
          authorized officer of the party to be charged, and this Agreement may
          not discharged except by performance in accordance with its terms or
          by a writing signed by an authorized officer of the party to be
          charged.

     20.  Severability. Any term or provision of this Agreement that is invalid
          or unenforceable in any jurisdiction, as to such jurisdiction, shall
          be ineffective to the extent of such invalidity or unenforceability,
          without rendering invalid or unenforceable the remaining terms and
          provisions of this Agreement or affecting the validity or
          enforceability of any of the terms or provisions of this Agreement in
          any other jurisdiction.

     21.  Dispute Resolution and Arbitration. In the event that any dispute
          arises between the parties pertaining to the subject matter of this
          Agreement, and the parties, through the senior management of Seller
          and Purchaser, are unable to resolve such dispute within a reasonable
          time through

                                       18
<PAGE>   19

     negotiations and mediation efforts by senior executives of both parties,
     such dispute shall be resolved as set forth in this Section 21.

     (a)  The procedures of this Section 21 may be initiated by a written notice
          ("Dispute Notice") given by one party ("Claimant") to the other, but
          not before thirty (30) days have passed during which the parties have
          been unable to reach a resolution as described above. The Dispute
          Notice shall be accompanied by (i) a statement of the Claimant
          describing the dispute in reasonable detail and (ii) documentation, if
          any, supporting the Claimant's position on the dispute. Within twenty
          (20) days after the other party's ("Respondent") receipt of the
          Dispute Notice and accompanying materials, the parties shall submit
          the dispute to binding arbitration in the Colorado area under the
          commercial rules of the American Arbitration Association.

     (b)  Any award arising out of arbitration (i) shall be binding and
          conclusive upon the parties; (ii) shall be limited to a holding for or
          against a party, and affording such monetary remedy as is deemed
          equitable, just and within the scope of this Agreement; (iii) may not
          include special, incidental, consequential or punitive damages; (iv)
          may in appropriate circumstances include injunctive relief; and (v)
          may be entered in court in accordance with the United States
          Arbitration Act.

     (c)  The arbitrator may not limit, expand or otherwise modify the terms of
          this Agreement.

     (d)  The laws of the State of California shall apply to any mediation,
          arbitration, or litigation arising under this Agreement.

     (e)  Each party shall bear its own expenses incurred in any mediation,
          arbitration or litigation, but any expenses related to the
          compensation and the costs of any mediator or arbitrator shall be
          borne equally by the parties to the dispute.

     (f)  A request by a party to a court for interim measures necessary to
          preserve a party's rights and remedies for resolution pursuant to this
          Section 21 shall not be deemed a waiver of the agreement to arbitrate.

     (g)  The parties, their representatives, other participants and the
          mediator or arbitrator shall hold the existence, content and result of
          arbitration in confidence.

     (h)  Any claim by Purchaser for indemnity or reimbursement from Seller for
          a "Non-Assumed Liability Claim" under Section 3.D need not be

                                       19
<PAGE>   20

              first submitted to arbitration under this Article 21, but
              Purchaser may instead elect to proceed directly under Section 22.

     22.  Jurisdiction; Court Proceedings; Waiver of Jury Trial. Subject to the
          provisions of Section 21, any suit, action or proceeding against any
          party to this Agreement arising out of or relating to this Agreement
          shall be brought in any Federal or state court located in the State of
          California or Colorado and each of the parties hereby submits to the
          exclusive jurisdiction of such courts for the purpose of any such
          suit, action or proceeding. A final judgment in any such action or
          proceeding shall be conclusive and may be enforced in other
          jurisdictions by suit on the judgment or in any other manner provided
          by law. To the extent that service of process by mail is permitted by
          Applicable Law, each party irrevocably consents to the service of
          process in any such suit, action or proceeding in such courts by the
          mailing of such process by registered or certified mail, postage
          prepaid, at its address for notices provided for herein. Each party
          irrevocably agrees not to assert (a) any objection which it may ever
          have to the laying of venue of any such suit, action or proceeding in
          any Federal or state court located in the Commonwealth of Pennsylvania
          and (b) any claim that any such suit, action or proceeding brought in
          any such court has been brought in an inconvenient forum. Each party
          waives any right to a trial by jury, to the extent lawful.

     23.  Non-Assignment of EPA Contracts. On and after the Closing, Purchaser
          shall not assign, transfer or novate its interest in and to the EPA
          Contracts without the prior written consent of the Seller; provided,
          however, that the Purchaser may assign the EPA Contracts to an
          affiliate or subsidiary or to a purchaser as part of a sale of the
          Purchaser to a third party, subject to the terms and conditions
          contained herein. This section shall survive the Closing.

     24.  Sections 3.C, 3.D, 5, 8, 9, 12, 14, 15, 16, 17, 18, 19, 20, 21, 22 and
          23 shall survive the Closing.

     25.  Counterparts. This Agreement may be signed in two counterparts, each
          of which shall be treated as an original, but which when taken
          together, shall constitute one and the same instrument.

                    [This space is intentionally left blank.]

                                       20
<PAGE>   21
         IN WITNESS WHEREOF, the parties hereto have executed this Agreement or
caused this Agreement to be executed in their respective names by their
respective duly authorized officers or representatives on the day and year first
above written.

                                       CET Environmental Services, Inc.

                                       By:
                                           -------------------------------------
                                       Name: Steven H. Davis
                                             -----------------------------------
                                       Title: President
                                              ----------------------------------

                                       IT Corporation

                                       By: /s/ BENJAMIN J. KOSEK
                                           -------------------------------------
                                       Name: Benjamin J. Kosek
                                             -----------------------------------
                                       Title: Vice President
                                              ----------------------------------

                                       21
<PAGE>   22

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement or
caused this Agreement to be executed in their respective names by their
respective duly authorized officers or representatives on the day and year first
above written.

                                       CET Environmental Services, Inc.

                                       BY: /s/ STEVEN H. DAVIS
                                           -------------------------------------
                                       NAME: Steven H. Davis
                                             -----------------------------------
                                       TITLE: President
                                              ----------------------------------

                                       IT Corporation

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

                                       21
<PAGE>   23
                                                                    SCHEDULE 1.A
                                                                    EPA CONTRACT

1.  Contract 68-W-0016 (effective January 9, 1997), with the EPA related to the
    provisions of Emergency and Rapid Response Services for Regions 6, 8 and 9
    of the EPA, and the following delivery orders attached hereto.

                                       22
<PAGE>   24

                                  HARBOR SQUARE
                                     OFFICE

1. PARTIES: This Lease, dated for reference purposes only November 24, 1997, is
made by and between HARBOR SQUARE ASSOCIATES (hereinafter called "Landlord") and
CET ENVIRONMENTAL SERVICES, INC. a California Corporation (hereinafter called
"Tenant").

2. PREMISES: Landlord hereby leases to Tenant and Tenant hereby leases from
Landlord that certain space (hereinafter called "Premises"), containing
approximately 6,920 square feet of floor area, being Suite 106 A AND 203 in
Building 5, located at 170 West Dayton, Edmonds, Snohomish County, Washington.
The approximate dimensions of said Premises are delineated in Exhibit "A" and
Exhibit "A-2" attached hereto and are located on property more particularly
described on Exhibit "A-1" attached hereto.

Said Lease is subject to the terms, covenants and conditions herein set forth
and the Tenant covenants as a material part of the consideration for this Lease
to keep and perform each and all of said terms, covenants and conditions by it
to be kept and performed.

3. USE: Tenant shall use the Premises for GENERAL OFFICE and shall not use or
permit the Premises to be used for any other purposes without the prior written
consent of Landlord.

4. TERM: Lease Term shall be THREE (3) FULL YEARS.

In the event the Premises are complete, the term of this Lease shall commence as
of APRIL 1, 1998. This Lease shall commence as of the date hereof and shall
continue thereafter during the Lease Term specified herein above, unless sooner
terminated as hereinafter provided in this Lease. Said Lease Term shall be
computed from the first day of January of the year following the date when the
obligation to pay any rental under this Lease first arises. The Lease shall
terminate on MARCH 31, 2001. * Unless extended as provided in Addendum 1
attached hereto.

In the event the Premises are not presently complete, Landlord agrees to deliver
to Tenant, and Tenant agrees to accept from Landlord possession of the Premises
forthwith upon substantial completion of the Premises as described in Exhibit
"B" attached hereto and incorporated herein by reference.

Landlord agrees that it will, at its sole cost and expense as soon as is
reasonably possible after the execution of this Lease commence and pursue to
completion the improvements to be erected by Landlord to the extent shown on the
attached Exhibit "B" labeled "Description of Landlord's Work and Tenant's Work".

The term "Substantial Completion of the Premises" is defined as the date on
which Landlord, its Agent or its Project Architect notifies Tenant in writing
that the Premises are substantially complete to the extent of Landlord's Work
specified in Exhibit "B" hereof, with the exception of such work as Landlord
cannot complete until Tenant performs necessary portions of its work. Tenant
shall commence the installation of fixtures, equipment and any of Tenant's work
as set forth in said Exhibit "B" promptly upon substantial completion of
Landlord's Work in the Premises and shall diligently prosecute such installation
to completion, and shall open the Premises for business not later than the date
specified for commencement of Monthly Base Rent in Article 5 hereof.

<PAGE>   25

5. MONTHLY BASE RENT: Tenant agrees to pay to Landlord as Rent, without notice
or demand, the monthly sum of EIGHT THOUSAND AND SEVENTY THREE AND 00/100's
($8,073.00) DOLLARS commencing APRIL 1,1998 and a like sum, in advance, on or
before the first day of each and every successive calendar month thereafter
during the term hereof, except that the first month's rent and deposit referred
to in Paragraph 6 herein, shall be paid upon the execution hereof. Rent for any
period during the term hereof which is for less than one (1) month shall be a
pro-rated portion of the monthly installment herein, based upon a thirty (30)
day month. Said rental shall be paid to Landlord without deduction or offset, in
lawful money of the United States of America, at such place as Landlord may from
time to time designate in writing.

     5A. The Monthly Base Rent shall be subject to increase on each annual
anniversary of the commencement of the term of this Lease. The base for
computing the increase is the Consumer Price Index all Urban Consumers U.S. City
Average (1982-84) = 100), published by the United States Department of Labor,
Bureau of Labor Statistics ("Index"), which is in effect on the ninetieth (90th)
day preceding the date of the commencement of the term ("Beginning Index"). The
Index published and in effect on the ninetieth (90th) day preceding each
anniversary of the commencement of the term of this Lease ("Extension Index") is
to be used in determine the amount of the increase from one year to the next.
Beginning with the rent due on and after the first anniversary of the
commencement of the term of this Lease, and on and after each subsequent
anniversary, the Base Monthly Rent shall be increased to equal the product
achieved by multiplying the initial full base monthly rent due with respect to
the month immediately preceding such anniversary date by a fraction. On the
first anniversary of the Commencement Date, the numerator of the fraction will
be the Extension Index and the denominator will be the Beginning Index. On the
second and any subsequent anniversaries of the Commencement Date, the numerator
of the fraction will be the current Extension Index and the denominator will be
the Extension Index used to calculate the previous year's rental increase. If
there is a decline from one lease year to the next in the Extension Index, the
monthly rent due during the subsequent lease year shall equal the monthly rent
due during the then present lease year. Notwithstanding anything contained
herein to the contrary, in no event shall base rent increase more than 4% on
each adjustment date.

   If the Index is changed so that the base year differs from that in effect
when the term commences, the Index shall be converted in accordance with the
conversion factor published by the United States Department of Labor, Bureau of
Labor Statistics. If the Index is discontinued or revised during the term, such
other government index or computation with which it is replaced shall be used in
order to obtain substantially the same result as would be obtained if the Index
had not been discontinued or revised.

6. SECURITY DEPOSIT: Tenant shall deposit with Landlord the sum of EIGHT
THOUSAND EIGHT HUNDRED AND SEVENTY FOUR AND 57/100'S ($8,874.57) DOLLARS. Said
sum shall be held by Landlord as security for the faithful performance by Tenant
of all the terms, covenants and conditions of this Lease to be kept and
performed by Tenant hereof. If Tenant defaults with respect to any provision of
this Lease including but not limited to the provisions relating to the payment
of rent, Landlord may (but shall not be required to) use, apply or retain all
or any part of this security deposit for the payment of any rent or any other
sum of default, or for the payment of any amount which Landlord may spend or
become obligated to spend by reason of Tenant's default, or to compensate
Landlord for any other loss or damage which Landlord may suffer by reason of
Tenant's default. If any portion of said deposit is so used or applied Tenant
shall, within five (5) days written demand therefore, deposit cash with Landlord
in an amount sufficient to restore the security deposit to its original amount
and Tenant's failure to do so shall be a default under this Lease. Landlord
shall not be required to keep this security deposit separate from its general
funds, and Tenant shall not be entitled to interest on such deposit. If Tenant
shall fully and faithfully perform every provision of this Lease to be performed
by it, the security deposit or any balance thereof shall be returned to Tenant
(or, at Landlord's option, to the last assignee of Tenant's interest hereunder)
within the ten (10) days following expiration of

                                        2
<PAGE>   26

the Lease term. In the event of termination of Landlord's interest in this
Lease, Landlord shall transfer said deposit to Landlord's successor in interest.

7. ADDITIONAL CHARGES:

I.   In addition to the Minimum Rent provided in Article 5 above, Tenant shall
pay to Landlord the following items, hereinafter called "Adjustments" Payment
for the Adjustments will commence MARCH 1, 1998. Base year 1997 cost per square
foot of $1.39 or $644.96 per month. The Adjustments are as follows:

     (a) All real estate taxes and insurance premiums on the Premises, including
land, building and improvements thereon. Said real estate taxes shall include
all real estate taxes and assessments that are levied upon and/or assessed
against the Premises. Said insurance shall include all insurance premiums for
fire, extended coverage, liability, and any other insurance that Landlord deems
necessary on the Premises. Said taxes and insurance premiums for the purpose of
this provision shall be reasonably apportioned in accordance with the total
floor area of the Premises as it relates to the total rentable floor area of the
building or buildings of which the Premises are a part, (provided, however, that
if any tenants in said building or buildings pay taxes directly to any taxing
authority or carry their own insurance, as may be provided in their lease, their
square footage shall not be deemed a part of the floor area). Any additional
amount in insurance premium in excess of the norm for the building or buildings
due to the specific nature of Tenant's business, shall be borne by the Tenant.

     (b) That percent of the total cost of the following items as Tenant's total
floor area bears to the total floor area of the building which is from time to
time completed as of the first day of each calendar quarter. Tenant's
proportionate share (23.65%) of the total cost of the following items:

       (i) All real estate taxes including assessments, all insurance costs, and
all costs to maintain, repair or replace common areas, parking lots, sidewalks,
driveways, and other areas used in common by the tenants of the Building.

       (ii) All costs to supervise and administer said common areas, parking
lots, sidewalks, driveways, and other areas used in common by the tenants or
occupants of the Building. Said costs shall include such fees as may be paid to
a third party in connection with same and shall in any event include a fee to
Landlord to supervise and administer same in an amount equal to ten (10%)
percent of the total costs of (I) above.

       (iii) Any parking charges, utilities surcharges, or any other costs
levied, assessed, imposed by or at the direction of or resulting from statutes
or regulations or interpretations thereof, promulgated by any governmental
authority in connection with the use or occupancy of the Premises or the parking
facilities serving the Premises.

       (iv) All rental taxes (other than Federal or State income taxes) levied
by any law, statute or ordinance presently in effect or enacted during the term
of this Lease.

II.  Upon commencement of rental Landlord shall submit to Tenant a statement of
the anticipated monthly Adjustments for the period between such commencement and
the following January and Tenant shall pay same and all subsequent monthly
payments in advance on the first day of each month. Tenant shall continue to
make said monthly payments until notified by Landlord of a change thereof. By
March 1 of each year, Landlord shall endeavor to give Tenant a statement showing
the total actual Adjustments for the Building for the prior calendar year and
Tenant's allocable share thereof, prorated from the commencement of payment for
Adjustments. In the event the total of the monthly payments which Tenant has
made for the prior calendar year are less than the actual share of such
Adjustments, then Tenant shall pay the difference in a lump sum within ten (10)
days after receipt of such statement from Landlord and shall concurrently pay
the

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<PAGE>   27

difference between the monthly payments made in the then-current calendar year
and the amount of monthly payments which are then calculated as monthly
Adjustments based on the prior year's experience. Any overpayment by Tenant
shall be credited towards the monthly Adjustments next coming due. The actual
Adjustments for the prior year shall be used for purposes of calculating the
anticipated monthly Adjustments for the then-current year with the actual
determination of such Adjustments after each calendar year as above provided;
excepting that in any year in which resurfacing is contemplated, Landlord shall
be permitted to include the anticipated cost of same as part of the estimated
monthly Adjustments. Even though the term has expired and Tenant has vacated the
premises, when the final determination is made of Tenant's share of said
Adjustments for the year in which this Lease terminates, Tenant shall
immediately pay any increase due over the estimated Adjustments previously paid
and, conversely, any overpayment made shall be immediately rebated by Landlord
to Tenant.

8. USES PROHIBITED: Tenant shall not do or permit anything to be done in or
about the Premises nor bring or keep anything therein which will in any way
increase the existing rate of or affect any fire or other insurance upon the
Building or any of its contents, or cause a cancellation of any insurance policy
covering said Building or any part thereof or any of its contents. Tenant shall
not do or permit anything to be done in or about the Premises which will in any
way obstruct or interfere with the rights of other tenants or occupants of the
Building or injure or annoy them or use or allow the Premises to be used for any
improper, immoral, unlawful or objectionable purpose, nor shall Tenant cause,
maintain or permit any nuisance in, on or about the Premises. Tenant shall not
commit or allow to be committed any waste in or upon the Premises.

9. COMPLIANCE WITH THE LAW: Tenant shall not use the Premises, or permit
anything to be done in or about the Premises, which will in any way conflict
with any law, statute, ordinance or governmental rule or regulation now in force
or which may hereafter be enacted or promulgated. Tenant shall, at its sole cost
and expense, promptly comply with all laws, statutes, ordinances and
governmental rules, regulations or requirements now in force or which may
hereafter be in force an with the requirements of any board of fire underwriters
or other similar bodies now or hereafter constituted relating to or affecting
the condition, use or occupancy of the Premises, excluding structural changes
not related to or affected by Tenant's Improvements or acts. The judgment of any
court of competent jurisdiction or the admission of Tenant in any action against
Tenant, whether Landlord be a party thereto or not, that Tenant has violated any
law, statute, ordinance or governmental rule, regulation or requirement, shall
be conclusive of that fact as between the Landlord and Tenant.

10. ALTERATIONS AND ADDITIONS: Tenant shall not make or allow to be made any
alterations, additions or improvements to or of the Premises or any part thereof
without the written consent of Landlord, and any alterations, additions or
improvements to or of said Premises, including, but not limited to, wall
covering, paneling and built-in cabinet work, but excepting movable furniture
and trade fixtures, shall at once become a part of the realty and belong to the
Landlord and shall be surrendered with the Premises. In the event Landlord
consents to the making of any alterations, additions or improvements to the
Premises by Tenant, the same shall be made by Tenant at Tenant's sole cost and
expense and any structural work shall be done by a contractor licensed and
bonded by the State of Washington. Upon the expiration or sooner termination of
the term hereof, Tenant shall, upon written demand by Landlord, given at least
thirty (30) days prior to the end of the term at Tenant's sole cost and expense,
forthwith and with all due diligence remove any alternations additions or
improvements made by Tenant, designated by Landlord to be removed, and Tenant
shall, forthwith and with all due diligence, at its sole cost and expense,
repair any damage to the premises caused by such removal.

11. REPAIRS: Notwithstanding the provisions of Article 10 hereinabove, Landlord
shall repair and maintain the structural portions of the Building including the
exterior walls and roof, unless such maintenance and repairs are caused in part
or in whole by the act, neglect, fault or omission of any duty by the Tenant,
its agents, servants, employees,

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<PAGE>   28

invitees, or any damage caused by breaking and entering, in which case Tenant
shall pay to Landlord the reasonable cost of such maintenance and repairs.
Landlord shall not be liable for any failure to make any such repairs or to
perform any maintenance unless such failure shall persist for an unreasonable
time after written notice of the need of such repairs or maintenance is given to
Landlord by Tenant. Except as provided in Article 25 hereof, there shall be no
abatement of rent and no liability of Landlord by reason of any injury to or
interference with Tenant's business arising from the making of any repairs,
alterations or improvements in or to any portion of the Building or the Premises
or in or to fixtures, appurtenances and equipment therein, Tenant waives the
right to make repairs at Landlord's expense under any law, statute or ordinance
now or hereafter in effect.

By entry hereunder, Tenant accepts the Premises as being in good and sanitary
order, condition and repair. Tenant shall keep, maintain and preserve the
Premises in first class condition and repair, and shall, when and if needed, at
Tenant's sole cost and expense, make all repairs to the Premises and every part
thereof. Tenant shall upon the expiration or sooner termination of the term
hereof, surrender the Premises to Landlord in the same condition as when
received, usual and ordinary wear and tear excepted. Landlord shall have no
obligation to alter, remodel, improve, repair, decorate or paint the Premises or
any part thereof. The parties hereto affirm that Landlord has made no
representations to Tenant respecting the condition of the Premises, the
Building, the Project or the Common Area except as specifically herein set
forth.

12. LIENS: Tenant shall keep the Premises and the property in which the Premises
are situated from any liens arising out of any work performed, materials
furnished or obligations incurred by Tenant, Landlord may require, at Landlord's
sole option, that Tenant shall provide to Landlord, at Tenant's sole cost and
expense, a lien and completion bond in an amount equal to one and one-half (1
1/2) times the estimated cost of any improvements, additions, or alterations in
the Premises which the Tenant desires to make, to insure Landlord against any
liability for mechanics' and materialmen's liens and to insure completion of the
work.

13. ASSIGNMENT AND SUBLETTING: Tenant shall not either voluntarily, or by
operation of law, assign, transfer, mortgage, pledge hypothecate or encumber
this Lease or any interest therein, and shall not sublet the said Premises or
any part thereof, or any right or privilege appurtenant thereto, or allow any
other person (the employees agents, servants and invitees of Tenant excepted) to
occupy or use the said Premises, or any portion thereof, without the written
consent of Landlord first had and obtained. A consent to one assignment,
subletting, occupation or use by any other person shall not be deemed to be a
consent to any subsequent assignment, subletting, occupation or use by another
person. Consent to any such assignment or subletting shall in no way relieve
Tenant of any liability under this Lease.

    Any such assignment or subletting without such consent shall be void, and
shall, at the option of the Landlord constitute a default under the terms of
this Lease.

    In the event that Landlord shall consent to a sublease or assignment
hereunder, Tenant shall pay Landlord Five Hundred and no/l00s ($500.00) Dollars,
incurred in connection with the processing of documents necessary to giving of
such consent.

14. HOLD HARMLESS: Tenant shall indemnify and hold harmless Landlord against and
from any and all claims arising from Tenant's use of the Premises or from the
conduct of its business or from any activity, work, or other things done,
permitted or suffered by the Tenant or about the Premises, and shall further
indemnify and hold harmless Landlord against and from any and all claims arising
from any breach of default in the performance of any obligation on Tenant's part
to be performed under the terms of this Lease, or arising from any act or
negligence of the Tenant, or any officer, agent, employee, guest, or invitee of
Tenant, and from all costs, attorney's fees, and liabilities incurred in or
about the defense of any such claim or any action or preceding brought thereon
and in case any action or proceeding be brought against Landlord by reason of
such claim, Tenant upon notice from

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<PAGE>   29

Landlord shall defend the same at Tenant's expense by counsel reasonably
satisfactory to Landlord, Tenant as a material part of the consideration to
Landlord hereby assumes all risk of damage to property or injury to persons in,
upon or about the Premises, from any cause other than Landlord's negligence, and
Tenant hereby waives all claims in respect thereof against Landlord.

    Landlord or its agents shall not be liable for any loss or damage to persons
or property resulting from fire, explosion, falling plaster, steam, gas,
electricity, water or rain which may leak from any part of the Building or from
the pipes, appliances, or plumbing works therein or from the roof, street or
subsurface or from any other place resulting from dampness or any other cause
whatsoever, unless caused by or due to the negligence of Landlord, its agents,
servants or employees, Landlord or its agents shall not be liable for
interference with the light, air, or for any latent defect in the Premises.
Tenant shall give prompt notice to Landlord in case of casualty or accidents in
the Premises.

    Neither Landlord nor any partner, director, officer, agent or employee of
Landlord shall be liable to Tenant or its partners, directors, officers,
contractors, agents, employees, invitees, sublessees or licensees, for any loss,
injury or damage to Tenant or to any other person, or to its or their property,
irrespective of the cause of such injury, damage or loss, unless solely caused
by or solely resulting from the gross negligence or willful misconduct of
Landlord or its employees in the operation or maintenance of the Premises, the
Building, or the Project without contributory negligence on the part of Tenant
or any of its sublessees or licensees or its or their employees, agents or
contractors, or any other lessees or occupants of the Building or Project.
Further, neither Landlord nor any partner, director, officer, agent or employee
of Landlord shall be liable (I) for any such damage caused by other lessees or
persons in or about the Building or Project, or caused by quasi-public work; or
(ii) for consequential damages arising out of any loss of the use of the
Premises of any equipment or facilities therein by Tenant or any person claiming
through or under Tenant.

15. SUBROGATION: As long as their respective insurers so permit, Landlord and
Tenant hereby mutually waive their respective rights of recovery against each
other for any loss insured by fire, extended coverage and other property
insurance policies existing for the benefit of the respective parties. Each
party shall apply to their insurers to obtain said waivers. Each party shall
obtain any special endorsements, if required by their insurer to evidence
compliance with the aforementioned waiver.

16. LIABILITY INSURANCE:

     16A Tenant shall, during the term hereof and any other period of occupancy,
at its sole cost and expense, keep in full force and effect the following
insurance:

         1. Standard form property insurance insuring against the perils of
fire, extended coverage, vandalism, malicious mischief, special extended
coverage ("All Risk") and sprinkler leakage. This insurance policy shall be upon
all property owned by Tenant, for which Tenant is legally liable or that was
installed at Tenant's expense, and which is located in the Project including,
without limitation, furniture, fittings, installations, fixtures (other than
Tenant Improvements installed by Landlord), and any other personal property, in
an amount not less than ninety percent (90%) of the full replacement cost
thereof. In the event that there shall be a dispute as to the amount which
comprises full replacement cost, the decision of Landlord or any mortgagees of
Landlord shall be conclusive. This insurance policy shall also be upon direct or
indirect loss of Tenant's earnings attributable to Tenant's inability to use
fully or obtain access to the Premises, Building or Project in an amount as will
property reimburse Tenant. Such policy shall name Landlord and any mortgagees of
Landlord as insured parties, as their respective interest may appear.

                                        6
<PAGE>   30

          2. Comprehensive General Liability Insurance insuring Tenant against
any liability arising out of the lease, use, occupancy or maintenance of the
Premises and all areas appurtenant thereto. Such insurance shall be in the
amount of $1,000,000 Combined Single Limit for injury to or death of one or more
persons in an occurrence, and for damage to tangible property (including loss of
use) in an occurrence, with such liability amount to be adjusted from year to
year to reflect increases in the Consumer Price Index. The policy shall insure
the hazards of the Premises and Tenant's Operations thereon, independent
contractors, contractual liability (covering the indemnity contained in
Paragraph 20 hereof and shall (a) name Landlord as an additional insured, (b)
contain a cross liability provision and (c) contain a provision that the
insurance provided the Landlord hereunder shall be primary and non-contributing
with any other insurance available to the Landlord.

         3. Workers' Compensation and Employer's Liability insurance (as
required by state law).

         4. Any other form or forms of insurance as Tenant or Landlord or any
mortgagees of Landlord may reasonably require from time to time in form, in
amounts and for insurance risks against which a prudent tenant would protect
itself.

     16B All policies shall be written in a form satisfactory to Landlord and
shall be taken out with insurance companies holding a General Policyholders
Rating of "A" and a Financial Rating of "X" or better, as set forth in the most
current issue of Best's Insurance Reports. Within ten (10) days after the
execution of this Lease, Tenant shall deliver to Landlord copies of policies or
certificates evidencing the existence of the amounts and forms of coverage
satisfactory to Landlord. No such policy shall be cancelable or reducible in
coverage except after thirty (30) days' prior written notice to Landlord. Tenant
shall, within ten (10) days prior to the expiration of such policies, furnish
Landlord with renewals or "binders" thereof, or Landlord may order such
insurance and charge the cost thereof to Tenant as additional rent. If Landlord
obtains any insurance that is the responsibility of Tenant under this Paragraph,
Landlord shall deliver to Tenant a written statement setting forth the cost of
any such insurance and showing in reasonable detail the manner in which it has
been computed.

17. UTILITIES: Tenant shall pay for all water, gas, heat, light, power, sewer
charges, telephone service and all other services and utilities supplied to the
Premises, together with any taxes thereon. If any such services are not
separately metered to tenant, Tenant shall pay to Landlord a reasonable
proportion to be determined by Landlord of all charges jointly metered with
other premises.

18. PERSONAL PROPERTY TAXES: Tenant shall pay, or cause to be paid, before
delinquency any and all taxes levied or assessed and which become payable during
the term hereof upon all Tenant's leasehold improvements, equipment, furniture,
fixtures, and any other personal property located in the Premises. In the Event
any or all of the Tenant's leasehold improvements equipment, furniture, fixtures
and other personal property shall be assessed and taxed with the real property.
Tenant shall pay to Landlord its share of such taxes within ten (10) days after
delivery to Tenant by Landlord of a statement in writing setting forth the
amount of such taxes applicable to Tenant's property.

19. RULES AND REGULATIONS: Tenant shall faithfully observe and comply with the
rules and regulations that Landlord shall from time to time promulgate and/or
modify. The rules and regulations shall be binding upon the Tenant upon delivery
of a copy of them to Tenant. Landlord shall not be responsible to Tenant for the
nonperformance of any said rules and regulations by any other tenants or
occupants.

20. HOLDING OVER: If Tenant remains in possession of the Premises or any part
thereof with the express written consent of Landlord, such occupancy shall be a
tenancy from month to month at a rental in the amount of 150% the last Monthly
Minimum Rent,

                                        7
<PAGE>   31

plus all other charges payable hereunder, and upon all the terms hereof
applicable to a month to month tenancy.

21. ENTRY BY LANDLORD: Landlord reserves, and shall at any and all times have
the right to enter the Premises to inspect the same, to submit said Premises to
prospective purchasers or tenants, to post notices of non-responsibility, to
repair the Premises and any portion of the Building of which the Premises are a
part that Landlord may deem necessary or desirable, without abatement of rent,
and may for that purpose erect scaffolding and other necessary structures where
reasonably required by the character of the work to be performed, always
providing that the entrance to the Premises shall not be blocked thereby, and
further providing that the business of the Tenant shall not be interfered with
unreasonably. Tenant hereby waives any claim for damages or for any injury or
inconvenience or interference with Tenant's business, any loss of occupancy or
quiet enjoyment of the Premises, and any other loss occasioned thereby, unless
caused by Landlord negligence. For each of the aforesaid purposes, Landlord
shall at all times have and retain a key with which to unlock all of the doors
in, upon and about the Premises, excluding Tenant's vaults, safes and files, and
Landlord shall have the right to use any and all means which Landlord may deem
proper to open said doors in an emergency in order to obtain entry to the
Premises without liability to Tenant except for any failure to exercise due care
for Tenant's property and any entry to the Premises obtained by Landlord by any
of said means, or otherwise, shall not under any circumstances be construed or
deemed to be a forcible or unlawful entry into, or a detainer of, the Premises,
or an eviction of Tenant from the Premises or any portion thereof.

22. TENANT'S DEFAULT: The occurrence of any one or more of the following events
shall constitute a default and breach of this Lease by Tenant.

     22A. The vacating or abandonment of the Premises by Tenant.

     22B. The failure by Tenant to make any payment of rent or any other payment
     required to be made by Tenant hereunder, as and when due, where such
     failure shall continue for a period of five 5) days after verbal or written
     notice thereof by Landlord to Tenant.

     22C. The failure by Tenant to observe or perform any of the covenants,
     conditions, or provisions of this Lease to be observed or performed by the
     Tenant, other than described in Article 22B above, where such failure shall
     continue for a period of thirty (30) days after written notice hereof by
     Landlord to Tenant; provided, however, that if the nature of Tenant's
     default is such that more than thirty (30) days are reasonably required for
     its cure, then Tenant shall not be deemed to be in default if Tenant
     commences such cure within said thirty (30) days period and thereafter
     diligently prosecutes such cure to completion.

     22D. The making by Tenant of any general assignment or general arrangement
     for the benefit of creditors; or the filing by or against Tenant of a
     petition to have Tenant adjudged a bankrupt, or a petition or
     reorganization or arrangement under any law relating to bankruptcy (unless,
     in the case of a petition filed against Tenant, the same is dismissed
     within sixty (60) days; or the appointment of a trustee or a receiver to
     take possession of substantially all of Tenants assets located at the
     Premises or of Tenants interest in this Lease, where possession is not
     restored to Tenant within thirty (30) days; or the attachment, execution or
     other judicial seizure of substantially all of Tenant's assets located at
     the Premises or of Tenant's interest in this Lease, where such seizure is
     not discharged in thirty (30) days.

23. REMEDIES IN DEFAULT: In the event of any such default or breach by Tenant,
Landlord may at any time thereafter, with or without notice or demand and
without

                                        8

<PAGE>   32

limiting Landlord in the exercise of a right or remedy which Landlord may have
by reason of such default or breach;

     23A. Terminate Tenant's right to possession of the Premises by any lawful
     means, in which case this Lease shall terminate and Tenant shall
     immediately surrender possession of the Premises to Landlord. In such event
     Landlord shall be entitled to recover from Tenant all damages incurred by
     Landlord by reason of Tenant's default including, but not limited to; the
     cost of recovering possession of the Premises; expenses of reletting,
     including necessary renovation and alteration of the Premises; reasonable
     attorney's fees; the worth at the time of award by the court having
     jurisdiction thereof of the amount by which the unpaid rent and other
     charges and Adjustments called for herein for the balance of the term after
     the time of such award exceeds the amount of such loss for the same period
     that Tenant proves could be reasonably avoided; and that portion of any
     leasing commission paid by Landlord and applicable to the unexpired term of
     this Lease. Unpaid installments of rent or other sums shall bear interest
     from the date due at the rate of twelve (12%) percent per annum; or,

     23B. Maintain Tenant's right to possession in which case this Lease shall
     continue in effect whether or not Tenant shall have abandoned the Premises.
     In such event Landlord shall be entitled to enforce all of Landlord's
     rights and remedies under this Lease, including the right to recover the
     rent and any other charges and Adjustments as may become due hereunder; or

     23C. Pursue any other remedy now or hereafter available to Landlord under
     the laws or judicial decisions of the State in which the Premises are
     located.

24. DEFAULT BY LANDLORD: Landlord shall not be in default unless Landlord fails
to perform obligations required of Landlord within a reasonable time, but in no
event later than thirty (30) days after the receipt of written notice of default
by Landlord and by the holder of any first mortgage or deed of trust covering
the Premises whose name and address shall have theretofore been furnished to
Tenant in writing, specifying wherein Landlord has failed to perform such
obligation, provided, however, that if the nature of Landlord's obligation is
such that more than thirty (30) days are required for performance then Landlord
shall not be in default if Landlord commences performance within such thirty
(30) days period and thereafter diligently prosecutes the same to completion. In
no event shall Tenant have the right to terminate this Lease as a result of
Landlord's default and Tenant's remedies shall be limited to damages and/or an
injunction.

25. RECONSTRUCTION: In the event the Premises are damaged by fire or other
perils covered by extended coverage insurance, Landlord agrees to forthwith
repair same, and this Lease shall remain in full force and effect, except that
Tenant shall be entitled to a proportionate reduction of the Minimum Rent from
the date of damage and while such repairs are being made, such proportionate
reduction to be based upon the extent to which the damage and making of such
repairs shall reasonably interfere with the business carried on by the Tenant in
the Premises. If the damage is due to the fault or neglect of Tenant or its
employees, there shall be no abatement of rent.

     In the event the Premises are damaged as a result of any cause other than
the perils covered by fire and extended coverage insurance, then Landlord shall
forthwith repair the same, provided the extent of the destruction be less than
ten (10%) percent of the then full replacement cost of the premises. In the
event the destruction of the Premises is to an extent of ten (10%) percent or
more of the full replacement cost then Landlord shall have the option; (1) to
repair or restore such damage, this Lease continuing in full force and effect,
but the Monthly Base Rent to be proportionately reduced as hereinabove in this
Article provided; or (2) give notice to Tenant at any time within sixty (60)
days after such damage, terminating this Lease as of the date specified in such
notice, which date shall be no more than thirty (30) days after the giving of
such notice. In the event of giving such

                                       9
<PAGE>   33

     notice, this Lease shall expire and all interest of the Tenant in the
     Premises shall terminate on the date so specified in such notice and the
     Monthly Base Rent, reduced by as proportionate reduction, based upon the
     extent, if any, to which such damage interfered with the business carried
     on by the Tenant in the Premises, shall be paid up to date of said such
     termination.

          Notwithstanding anything to the contrary contained in this Article,
     Landlord shall not have any obligation whatsoever to repair, reconstruct or
     restore the Premises when the damage resulting from any casualty covered
     under this Article occurs during the last twenty-four months of the term
     of this Lease or any extension thereof.

          Landlord shall not be required to repair any injury or damage by fire
     or other cause, or to make any repairs or replacements of any leasehold
     improvements, fixtures, or other personal property of Tenant.

     26. EMINENT DOMAIN: If more than twenty-five (25%) percent of the Premises
     shall be taken or appropriated by any public or quasi-public authority
     under the power of eminent domain, either party hereto shall have the
     right, at its option, within sixty (60) days after said taking, to
     terminate this Lease upon thirty (30) days written notice. If either less
     than or more than 25% of the Premises are taken (and neither party elects
     to terminate as herein provided), the Monthly Base Rent thereafter to be
     paid shall be equitably reduced. If any part of the Building other than the
     Premise may be so taken or appropriated, Landlord shall within sixty (60)
     days of said taking have the right at its option to terminate this Lease
     upon written notice to Tenant. In the event of any taking or appropriation
     whatsoever, Landlord shall be entitled to any and all awards and/or
     settlements which may be given and Tenant shall have no claim against
     Landlord for the value of any unexpired term of this Lease.

     27. TENANT'S STATEMENT: Tenant shall at any time and from time to time upon
     not less than five (5) days prior written notice from Landlord execute,
     acknowledge and deliver to Landlord, and to any Lender of Landlord, a
     statement in writing (a) certifying that this Lease is unmodified and in
     full force and effect (or, if modified, stating the nature of such
     modification and certifying that this Lease as so modified is in full force
     and effect), and the date to which the rental and other charges are paid in
     advance, if any, and (b) acknowledging that there are not, to Tenant's
     knowledge, any incurred defaults on the part of the Landlord hereunder, or
     specifying such defaults if any are claimed, and (c) setting forth the date
     of commencement of rents and expiration of the term hereof. Any such
     statement may be relied upon by any prospective purchaser or encumbrance of
     all or any portion of the real property of which the Premises are a part.

     28. PARKING AND COMMON AREAS: Landlord covenants that common and parking
     areas shall be at all times available for the non-exclusive use of Tenant
     during the full term of this Lease or any extension term hereof, provided
     that the condemnation or other taking by any public authority, or sale in
     lieu of condemnation, of any or all of such common and parking areas shall
     not constitute a violation of this covenant. Landlord reserves the right to
     change the entrances, exits, traffic lanes and the boundaries and locations
     of such parking area or areas.

          28A. Prior to the date of Tenant's opening for business in the
          Premises, Landlord shall cause said common and parking area of areas
          to be graded, surfaced, marked and landscaped at no expense to Tenant.

          28B. The Landlord shall keep said automobile parking and common areas
          in a neat, clean and orderly condition, and shall repair any damage to
          the facilities thereof.

          28C. Tenant, for the use and benefit of Tenant, its agents, employees,
          customers, licensees and sub-tenants, shall have the non-exclusive
          right in common with Landlord, and other present and future owners,
          tenants and their agents, employees, customers, licensees and
          sub-tenants, to use said common and parking areas during

                                       10

<PAGE>   34

          the entire term of this Lease, or any extension thereof, for ingress
          and egress, and automobile parking.

          28D. The Tenant, in the use of said common and parking areas, agrees
          to comply with such reasonable rules, regulations and charges for
          parking as the Landlord may adopt from time to time for the orderly
          and proper operation of said common and parking area. Such rules may
          include but shall not be limited to the following; (1) The restricting
          of employee parking to a limited, designated area or areas; and (2)
          The regulation of the removal, storage and disposal of Tenant's refuse
          and other rubbish at the sole cost and cost and expense of Tenant.

     29.  AUTHORITY OF PARTIES:

          29A. Corporate Authority. If Tenant is a corporation, each individual
          executing this Lease on behalf of said corporation represents and
          warrants that he is duly authorized to execute and deliver this Lease
          on behalf of said corporation, in accordance with a duly adopted
          resolution of the board of directors of said corporation, a copy of
          which is attached hereto, in accordance with the bylaws of said
          corporation, and that this Lease is binding upon said corporation in
          accordance with its terms.

          29B. Limited Partnerships. If the Landlord herein is a limited
          partnership, it is understood and agreed that any claims by Tenant on
          Landlord shall be limited to the assets of the limited partnership,
          and furthermore, Tenant expressly waives any and all rights to proceed
          against the individual partners, or the officers, directors or
          shareholders of any corporate partner, except to the extent of their
          interest in said limited partnership.

     30. SIGNS: No sign, picture, advertisement or notice shall be displayed,
     inscribed, painted or affixed to any of the glass or woodwork of the
     premises hereby demised, except such as shall be approved by the Landlord
     in writing, and shall be painted by a sign painter designated by the
     Landlord, no signs or devices shall be hung on or placed against the
     windows of said premises nor on the exterior wall of the building. (See
     Sign Criteria attached.)

     31. DISPLAYS: The Tenant may not display or sell merchandise or allow
     grocery carts or other similar devices within the control of Tenant to be
     stored or to remain outside the defined exterior walls and permanent
     doorways of the Premises. Tenant further agrees not to install any exterior
     lighting, amplifiers or similar devices or use in or about the Premises any
     advertising medium which may be heard or seen outside the Premises, such as
     flashing lights, searchlights, loudspeakers, phonographs or radio
     broadcasts.

     32. AUCTIONS: Tenant shall not conduct or permit to be conducted any sale
     by auction in, upon or from the Premises, whether said auction be
     voluntary, involuntary, pursuant to any assignment for the payment of
     creditors or pursuant to any bankruptcy or other insolvency proceeding.

     33. HOURS OF BUSINESS: Not applicable to this Lease.

     34. LIMITATION ON LIABILITY: In consideration of the benefits accruing
     hereunder, Tenant and all successors and assigns covenant and agree that,
     in the event of any actual or alleged failure, breach or default
     hereunder by Landlord:

          34A The sole and exclusive remedy shall be against the Landlord's
     interest in the Project;

          34B No partner of Landlord shall be sued or named as a party in any
     suite or action (except as may be necessary to secure jurisdiction of the
     partnership);

                                       11

<PAGE>   35

          34C No service of process shall be made against any partner of
     Landlord (except as may be necessary to secure jurisdiction of the
     partnership);

          34D No judgment will be taken against any partner of Landlord;

          34E Any judgment taken against any partner of Landlord may be vacated
     and set aside at any time nunc pro tunc;

          34F No writ of execution will ever be levied against the assets of any
     partner of Landlord;

          34G The obligations of Landlord under this Lease do not constitute
     personal obligations of the individual partners, directors, officers or
     shareholders of Landlord, and Tenant shall not seek recourse against the
     individual partners, directors, officers or shareholders of Landlord or any
     of their personal assets for satisfaction of any liability in respect to
     this Lease;

          34H These covenants and agreements are enforceable both by Landlord
     and also by any partner of Landlord.

     35. MODIFICATION FOR LENDER: If in connection with obtaining construction,
     interim or permanent financing for the Project the lender shall request
     reasonable modifications in this Lease as a condition to such financing,
     Tenant will not unreasonably withhold, delay or defer its consent thereto,
     provided that such modifications do not increase the obligations of Tenant
     hereunder or materially adversely affect the leasehold interest hereby
     created or Tenant's rights hereunder.

     36. HAZARDOUS SUBSTANCES:

          36A Presence and Use of Hazardous Substances. Tenant shall not,
     without Landlord's prior written consent, keep on or around the Premises,
     Common Areas or Building, for use, disposal, treatment, generation, storage
     or sale, any substances, wastes or materials, designated as, or containing
     components designated as hazardous dangerous toxic or harmful and/or which
     are subject to regulation by any federal, state or local law, regulation,
     statute or ordinance (collectively referred to as "Hazardous Substances").

          36B Cleanup Costs. Default and Indemnification.

          1. Tenant shall be fully and completely liable to Landlord for any and
     all cleanup costs, and any and all other charges, fees, penalties (civil
     and criminal) imposed by any governmental authority with respect to
     Tenant's use, disposal, transportation, generation and/or sale of Hazardous
     Substances, in or about the Premises, Common Areas, or Building.

          2. Tenant shall indemnify, defend and save Landlord harmless from any
     and all of the costs, fees, penalties and charges assessed against or
     imposed upon Landlord (as well as Landlord's attorneys' fees and costs) as
     a result of Tenant's use, disposal, transportation, generation and/or sale
     of Hazardous Substances.

          3. Upon Tenant's default in addition to the rights and remedies set
     forth elsewhere in this Lease, Landlord shall be entitled to the following
     rights and remedies:

               a. At Landlord's option, to terminate this Lease immediately;
     and/or

               b. To recover any and all damages associated with the default,
     including, but not limited to cleanup costs and charges, civil and criminal
     penalties and fees, loss of business and sales by Landlord and other
     tenants of the Building, any and all damages and claims asserted by third
     parties and Landlord's attorneys' fees and costs.

                                       12

<PAGE>   36

     37.  GENERAL PROVISIONS:

          (i) Plats and Riders. Clauses, plats, riders and addendum's, if any
     affixed to this Lease are a part hereof.

          (ii) Waiver. The waiver by Landlord of any term, covenant or condition
     herein contained shall not be deemed to be a waiver of such term, covenant
     or condition herein contained. The subsequent acceptance of rent hereunder
     by Landlord shall not be deemed to be a waiver of any preceding default by
     Tenant of any term, covenant or condition of this Lease, other than the
     failure of the Tenant to pay the particular rental so accepted, regardless
     of Landlord's knowledge of such preceding default at the time of the
     acceptance of such rent.

          (iii) Joint Obligation. If there be more than one Tenant the
     obligations hereunder imposed shall be joint and several.

          (iv) Marginal Headings. The marginal headings and article titles to
     the articles of this Lease are not a part of the Lease and shall have no
     effect upon the construction or interpretation of any part thereof.

          (v) Time. Time is of the essence of this Lease and each and all of its
     provisions in which performance is a factor.

          (vi) Successors and Assigns. The covenants and conditions herein
     contained, subject to the provisions as to assignment, apply to and bind
     the heirs, successors, executors, administrators and assigns of the parties
     hereto.

          (vii) Recordation. Neither Landlord nor Tenant shall record this
     Lease, but a short form memorandum hereof may be recorded at the request of
     Landlord.

          (viii) Quiet Possession. Upon Tenant paying the rent reserved
     hereunder and observing and performing all of the covenants, conditions and
     provisions on Tenant's part to be observed and performed hereunder, Tenant
     shall have quiet possession of the Premises for the entire term hereof,
     subject to all the provisions of this Lease. Tenant has satisfied himself
     of and hereby accepts the building's method of construction for sound
     deadening. Any additional requirements for sound deadening shall be borne
     at the sole expense of the Tenant.

          (ix) Late Charges. Tenant hereby acknowledges that late payment by
     Tenant to Landlord of rent or other sums due hereunder will cause Landlord
     to incur costs not contemplated by this Lease, the exact amount of which
     will be extremely difficult to ascertain. Such costs include, but are not
     limited to, processing and accounting charges, and late charges which may
     be imposed upon Landlord by terms of any mortgage of trust deed covering
     the Premises. Accordingly, if any installment of rent or any sum due from
     Tenant shall not be received by Landlord or Landlord's designee within
     ten (10) days after the amount is due, then Tenant shall pay to Landlord
     a late charge equal to ten (10%) percent of such overdue amount, plus any
     attorney's fees incurred by Landlord by reason of Tenant's failure to pay
     rent and/or other charges when due hereunder. The parties hereby agree that
     such late charges represent a fair and reasonable estimate of the cost that
     Landlord will incur by reason of the late payment by Tenant. Acceptance of
     such late charges by the Landlord shall in no event constitute a waiver of
     tenant's default with respect to such overdue amount, nor prevent Landlord
     from exercising any of the other rights and remedies granted hereunder.

          (x) Prior Agreements. This Lease contains all of the agreement of the
     parties hereto with respect to any matter covered or mentioned in this
     Lease, and no prior agreements or understanding pertaining to any such
     matters shall be effective for any purpose. No provision of this Lease may
     be amended or added to except by an agreement in writing

                                       13
<PAGE>   37

     signed by the parties hereto or their respective successors in interest.
     This Lease shall not be effective or binding on any party until fully
     executed by both parties hereto.

          (xi) Inability to Perform. This Lease and the obligations of the
     Tenant hereunder shall not be affected or impaired because the Landlord is
     unable to fulfill any of its obligations hereunder or is delayed in doing
     so, if such inability or delay is caused by reason of strike, labor
     troubles, acts of God, or any other cause beyond the reasonable control of
     the Landlord.

          (xii) Partial Invalidity. Any provision of this Lease which shall
     prove to be invalid, void, or illegal shall in no way affect, impair or
     invalidate any other provision hereof and such other provision shall remain
     in full force and effect.

          (xiii) Cumulative Remedies. No remedy or election hereunder shall be
     deemed exclusive but shall, wherever possible, be cumulative with all other
     remedies at law or in equity.

          (xiv) Choice of Law. This Lease shall be governed by the laws of the
     State in which the Premises are located.

          (xv) Attorney's Fees. In the event of any action or proceeding brought
     by either party against the other under this Lease the prevailing party
     shall be entitled to recover for the fees of its attorney in such action or
     proceeding, including costs of appeal, if any, in such amount as the court
     may judge reasonable as attorney's fees. In addition, should it be
     necessary for Landlord to employ legal counsel to enforce any of the
     provisions herein contained, Tenant agrees to pay all attorney's fees and
     court costs reasonably incurred.

          (xvi) Sale of Premises by Landlord. In the event of any sale of the
     Premises by Landlord, Landlord shall be and is hereby entirely freed and
     relieved of all liability under any and all of its covenants and
     obligations contained in or derived from this Lease arising out of any act,
     occurrence or omission occurring after the consummation of such sale; and
     the purchaser, at such sale or any subsequent sale of the Premises shall be
     deemed, without any further agreement between the parties or their
     successors in interest or between the parties and any such purchaser, to
     have assumed and agreed to carry out any and all of the covenants and
     obligations of the Landlord under this Lease.

          (xvii) Subordination, Attornment. Upon request of the Landlord, Tenant
     will, in writing, subordinate its rights hereunder to the lien of any
     mortgage or deed of trust to any bank, insurance company or other lending
     institution, now or hereafter in force against the Premises, and to all
     advances made or hereafter to be made upon the security thereof.

          In the event any proceedings are brought for foreclosure, or in the
     event of the exercise of the power of sale under any mortgage or deed of
     trust made by the Landlord covering the Premises, the Tenant shall attorn
     to the purchaser upon any such foreclosure or sale and recognize such
     purchaser as the Landlord under this Lease.

          The provisions of this Article to the contrary notwithstanding and so
     long as Tenant is not in default hereunder, this Lease shall remain in full
     force and effect for the full term hereof.

          (xviii) Notices. All notices and demands which may or are to be
     required or permitted to be given by either party on the other hereunder
     shall be in writing. All notices and demands by the Landlord to the Tenant
     shall be sent by United States Mail, postage prepaid, addressed to the
     Tenant at the Premises, and to the address herein below, or to such other
     place as Tenant may from time to time designate in a notice to the
     Landlord. All notices and demands by the Tenant to the Landlord shall be
     sent by United States Mail postage prepaid, addressed to the Landlord at
     the address set forth herein, and to such other person or place as the
     Landlord may from time to time designate in a notice to the Tenant.

                                       14
<PAGE>   38

To Landlord At: 120 W. DAYTON, SUITE B/6, EDMONDS, WASHINGTON 98020

To Tenant At: 170 W. DAYTON, SUITE 106 A, EDMONDS, WASHINGTON 98020

38. BROKERS. Tenant warrants that it has had no dealings with any real estate
broker or agents in connection with the negotiation of this Lease, excepting
only NONE and it knows of no other real estate broker or agent who is entitled
to a commission in connection with Lease.

39. This Lease is subject to final approval of the lending institution
financing this project.

If this Lease has been filled in, it has been prepared for submission to your
attorney for his approval. No representation or recommendation has been made by
the real estate broker or its agents or employees as to the legal sufficiency,
legal effect or tax consequences of this Lease or the transactions relating
thereto.

LANDLORD: HARBOR SQUARE ASSOCIATES

By: /s/ DICK BESELIN
   ---------------------------------------
   Dick Beselin, Managing General Partner

TENANT:

By: /s/ JOHN G.L. HOPKINS
  ----------------------------------------
  John G.L. Hopkins, Senior Vice President
  CET Environmental Services, Inc.
<PAGE>   39

STATE OF WASHINGTON      )
                         ) ss.
COUNTY OF                )

On this 10th day of December, 1997, before me, the undersigned, a Notary Public
in and for the State of Washington, duly commissioned and sworn, personally
appeared Dick Beselin, to me known to be the Managing General Partner, of the
company that executed the foregoing instrument, and acknowledged the said
instrument to be the free and voluntary act and deed of said corporation, for
the uses and purposes therein mentioned and on oath stated that he was
authorized to execute the said instrument and that the seal affixed is the seal
of said company.

Witness my hand and official seal hereto affixed the day and year first above
written.

[NOTARY PUBLIC SEAL]                         /s/ JANICE CONNER
                                             ----------------------------------
                                             NOTARY PUBLIC in and for the State
                                             of Washington, residing at

                                                           EDMONDS
                                             ----------------------------------

                                             My commission expires: 11/9/99
                                                                   ---------

STATE OF WASHINGTON      )
                         ) ss.
COUNTY OF SNOHOMISH      )

On this 2nd day of December, 199_, before me, a Notary Public in and for the
State of Washington, duly commissioned and sworn, personally appeared John G. L.
Hopkins, to me known to be the individual names in and who executed the
foregoing instrument, and acknowledged to me that he/she signed the same as
his/her free and voluntary act and deed for the uses and purposes therein
mentioned.

WITNESS MY HAND AND OFFICIAL SEAL the day and year first above written.

[NOTARY PUBLIC SEAL]                         /s/ SUSAN BESELIN
                                             ----------------------------------
                                             NOTARY PUBLIC in and for the State
                                             of Washington, residing at

                                                           EDMONDS
                                             ----------------------------------

                                             My commission expires: 6/15/99
                                                                   ----------

                                       16
<PAGE>   40

                                   EXHIBIT "C"
                           HARBOR SQUARE BUSINESS PARK
                              RULES AND REGULATIONS

         Tenant shall faithfully observe and comply with the rules and
regulations that Landlord shall from time to time promulgate and/or modify. The
rules and regulations shall be binding upon the Tenant. Landlord shall not be
responsible to Tenant for the nonperformance of any said rules and regulations
by any other tenants or occupants.

         The Tenant, in the use of said common and parking areas, agrees to
comply with such reasonable rules, regulations for the parking as the Landlord
may adopt from time to time for the orderly and proper operation of said common
and parking areas. Such rules may include but shall not be limited to the
restricting of employee parking to a limited, designated area or areas. The
following rules and regulations are now in effect:

1. Tenant parking is on a non-exclusive, first-come-first-serve basis within the
designated areas and is intended for vehicles used to commute to and from work.
Storage of vehicles or the display of vehicles, such as "for sale", is not
permitted. Company vans or cars used in the daily operation of tenant's business
may remain on the premises overnight. Any parking of vehicles other than what is
described above must have Landlord's approval. Vehicles not conforming with the
above will be towed at the owner's expense.

2. All loading and unloading of goods shall be done only at such times, in the
areas, and through the entrances designated for such purposes by Landlord.

3. All garbage and refuse shall be kept in the kind of container specified by
Landlord, and shall be placed outside of the Leases Premises prepared for
collection in the manner and at the times and places specified by Landlord. If
Landlord shall provide or designate a service for picking up refuse and garbage,
Tenant shall use same at Tenant's cost. Tenant shall pay the cost of removal of
any of Tenant's refuse or rubbish.

4. No aerial shall be erected on the roof or exterior walls of the Leased
Premises or on the grounds, without in each instance, the written consent of
Landlord. Any aerial so installed without such written consent shall be subject
to removal without notice at any time.

5. No loud speakers, televisions, phonographs, radios, or other devices shall be
used in a manner so as to be heard or seen outside of the Leased Premises
without the prior written consent of Landlord.

6. If the Leased Premises are equipped with heating facilities separate from
those in the remainder of the building, Tenant shall keep the Leased Premises at
a temperature sufficiently high to prevent freezing of water pipes and fixtures.

7. The exterior areas immediately adjoining the Leased Premises shall be kept
clean and free from snow, ice, dirt and rubbish by Tenant to the satisfaction of
Landlord, and Tenant shall not place or permit any obstruction or merchandise in
such areas.

8. The plumbing facilities shall not be used for any other purpose than that
for which they are constructed, and no foreign substance of any kind shall be
thrown therein, and the expense of any breakage, stoppage, or damage resulting
from a violation of this provision shall be borne by Tenant who shall, or whose
employees, agents or invitees shall have caused it.

9. Tenant shall use at Tenant's cost such pest extermination contractor as
Landlord may direct and at such intervals as Landlord may require.

                                       17
<PAGE>   41

10. Tenant shall not burn any trash or garbage of any kind in or about the
Leased Premises.

11. Tenant shall not make noises, cause disturbances, or create odors which may
be offensive to other tenants of the building or their officers employees
agents, servants, customers or invitees.

12. Tenant shall not allow for the operation of a day care facility within the
Premises.

13. Tenant, employees or invitees shall not smoke in the premises.

                                       18

<PAGE>   42

                                  EXHIBIT "A"

                          HARBOR SQUARE BUSINESS PARK

                               [FIRST FLOOR PLAN]

<PAGE>   43

                                   EXHIBIT "B"

                          HARBOR SQUARE BUSINESS PARK

               Description of Landlord's Work and Tenant's Work

                    Tenant: CET ENVIRONMENTAL SERVICES, INC.
                             170 W. Dayton, 106 B-D
                               Edmonds, WA 98020

         DESCRIPTION OF LANDLORD'S WORK

         Premises: As is in the enclosed space, with the exception of:

                  1. Over Head door to be re-installed.

                  Exterior:

                  1. Landlord shall provide for a fenced area with one (1)
                  roller gate immediately adjacent to the warehouse as shown on
                  "Exhibit D - Yard".

<PAGE>   44

                                EXHIBIT "D-YARD"

                          HARBOR SQUARE BUSINESS PARK

                                  [FLOOR PLAN]

<PAGE>   45
                                  EXHIBIT "A-1"

                          HARBOR SQUARE BUSINESS PARK

Building 5

That portion of Government Lot 3, Section 23, Township 27 North, Range 3 East,
V.M., described as Parcel 5, in Snohomish County, Washington, together with
easements, covenants and restrictions of record.

                                       22
<PAGE>   46

                                   ADDENDUM 1

         Tenant shall have three (3) successive options to extend the term of
this lease upon the same terms and conditions as contained in the Lease dated
November 24, 1997 for an additional period of one (1) year each commencing upon
the expiration of the preceeding term, provided that Tenant is not in material
default in the performance of any condition of the Lease at the time of the
exercise of the option or at the time of commencement of the option term. The
option may be exercised only by Tenant delivering written notice thereof to
Landlord not less than six (6) months prior to the expiration of the original
Lease term, the terms and conditions of the Lease shall remain the same except
for the amount of minimum rent, which amount shall be negotiated and agreed upon
by both parties at least four (4) months prior to commencement date of the
option term. In the event that minimum rent is not agreed upon by that time,
this option becomes null and void. Upon exercise of the option and upon
agreement of the amount of minimum rent per the above, the Lease shall be deemed
extended without execution of any further lease or other instrument. Together
with the payment of minimum rent due for the first month of the option term,
Tenant shall deposit with Landlord any additional amount necessary so that the
amount of security deposit held by Landlord equals the amount of the
then-current minimum rent.

                                       23
<PAGE>   47

                           HARBOR SQUARE SIGN CRITERIA

                           BUILDING 5, 170 W. DAYTON

A.       One copy of layout and shop drawings are to be submitted to the
         Lessor for approval before fabrication and prior to submission to the
         City.

B.       An approved drawing will be required before installation of sign is
         permitted. Signs built without approval or contrary to corrections on
         approved drawing will be altered to conform with these standards at
         the expense of the Lessee.

C.       No flashing or animated signs will be permitted.

D.       No exposed electrical tubing or "cross-over" will be permitted.

E.       No projections above or below the sign panel designated area will be
         permitted.

F.       For the ground floor, the following types of signs are acceptable:
         channel letters, foam letters.
         Second floor signage is generally not permitted.

G.       All lettering shall be restricted to the sign area. See subsequent
         sheets for maximum letter heights and allowable locations.

H.       Window signs shall be for tenant identification only and shall be fold
         leaf or similar lettering (see Sheet 2).

I        Symbols, spacing and colors are subject to the Lessor's written
         approval.

J.       After approval by Lessor, a sign must be submitted to and approved by
         the Architectural Design Board of the City of Edmonds.

<PAGE>   48

TEMPORARY SIGNS:

All temporary signs, which have been pre-approved by Landlord and meet the City
of Edmonds sign code, require a refundable deposit of $100. Temporary signs
include, but are not limited to, banners and posters. All temporary signs shall
be removed after fourteen (14) days, unless Tenant has received prior approval
from Landlord for a longer placement. Any signs left up longer than what
Landlord has approved shall be removed by Landlord and Tenant shall forfeit the
entire deposit. Signs shall not be installed in such a manner that the building
shell is penetrated. In the event that this should occur, Tenant shall also pay
the cost the repair such penetrations in addition to the amount initially
deposited. Signs which have been placed without Landlord's prior written
approval shall be removed at the sole expense of Tenant including, but not
limited to, any repairs resulting from sign placement and removal.

Sandwich style signs are to be placed only on the grassy areas as outlined on
the attached site plan and must be to announce special events only (e.g.,
special displays, sales, etc.) and cannot be left out for more than fourteen
(14) days in a row and are to be removed each night. Only one sandwich sign at a
time can be placed on each of the grassy areas as outlined on the attached site
plan. These signs must also conform to the size, colors, etc. as allowed by the
current City of Edmonds codes.

<PAGE>   49

                           [HARBOR SQUARE LETTERHEAD]

                                 HARBOR SQUARE
                                 SIGN CRITERIA

A.   INSTALLATION:

     1.   TENANTS SHALL PAY FOR THE INSTALLATION AND MAINTENANCE
          OF ALL SIGNS.  THE OWNER WILL PROVIDE PRIMARY ELECTRICAL
          SERVICE TERMINATING AT THE POINT SHOWN ON THE CONSTRUCTION
          DRAWINGS.  THE TENANT SHALL PROVIDE ALL OTHER INSTALLATION,
          INCLUDING FINAL CONNECTION, TRANSFORMERS AND ALL OTHER LABOR
          AND MATERIALS FOR SIGN INSTALLATION.

B.   EXCEPTIONS:

     1.   EXCEPTIONS TO THESE STANDARDS SHALL BE REVIEWED BY THE LESSOR,
          AND ACCORDINGLY, THE DEVELOPER WILL RETAIN FULL RIGHTS OF APPROVAL ON
          ANY SIGNS USED IN HARBOR SQUARE.

[DRAWING]      C.   STOREFRONT/WINDOWS:

                    1.   THE TENANT IS ALLOWED TO USE UP TO 144 SQ. IN. OF GOLD
                         LEAF OR DECAL APPLICATION LETTERING, NOT TO EXCEED 2".

                    2.   ALL NUMBERS AND DECAL LETTERS SHALL BE
                         "MICRO-STYLE BOLD".  OTHER TYPE FACES ARE SUBJECT TO
                         APPROVAL BY LESSOR.

                                      -2-
<PAGE>   50
[HARBOR SQUARE LETTERHEAD]       HARBOR SQUARE
                                 SIGN CRITERIA

A.   ILLUMINATED SIGN CAN:

     1.   FROM SIDEWALL TO SIDEWALL OF TENANT SPACE, APPROVED
          PLASTIC PANELS AND SIGNS SHALL BE LIMITED AS FOLLOWS:

          a.   They shall not exceed 20 percent of the wall area.
          b.   They shall be located a minimum distance of 18" from
               adjacent tenants.
          c.   They shall not exceed a height of 18".
          d.   All edges and the back shall be fully encased in metal.

     2.   SIGN SHALL BE ATTACHED DIRECTLY TO WALL.  THE BOTTOM OF
          PROJECTING SIGN SHALL BE AT 8' - 0" MINIMUM.

     3.   SUGGESTED TYPE FACE IS "MICROSTYLE BOLD", OTHER FACES SUBJECT TO
          PRIOR APPROVAL BY LESSOR.

     [DRAWING]           ANODIZED ALUMINUM SIGN        [DRAWING]
                         CAN, TO MATCH STOREFRONT.

                         SEMI-OPAQUE BACKGROUND
                         COLOR SUBJECT TO LESSOR'S
                         APPROVAL.

                         TRANSLUCENT LETTERS,
                         COLOR SUBJECT TO LESSOR'S
                         APPROVAL. 430 WA. COOLWHITE
                         LAMPS, 7" O.C.

                                      -3-

<PAGE>   51

                                  [SITE PLAN]

[HARBOR SQUARE LOGO]                                                 HARBOR
                                                                     SQUARE
                                                                     ASSOCIATES
                                                                     EDMONDS, WA
                                                                     98020
<PAGE>   52
                                                                   SCHEDULE 1.C.
                                                          EPA CONTRACT EQUIPMENT

SEE ATTACHED SCHEDULE AND INCLUDING SELLERS OFFICE FURNITURE AND MISCELLANEOUS
EQUIPMENT AND SUPPLIES LOCATED IN THE EDMUNDS, WA LEASED FACILITY.

                                       23
<PAGE>   53
<TABLE>
<CAPTION>

 ID            SERIAL                        MAKE & MODEL                          AP VENDOR              FAACCT   BOOK_BASIS
----      -----------------        ---------------------------------       ------------------------      --------  -----------
<S>       <C>                      <C>                                     <C>                           <C>
S100      1FTJX35G4RKB31487        94 F350 1 TON EXT CAB                   COURTESY                      0172-002  $ 13,385.85
S101      1FTJX35GTEB64213         96 F350 1 TON EXT CAB                   ASSOCIATES LEASING            0172-002  $ 20,732.00
S102      2FDKF3852LCA91856        90 F350 1 TON FLATBED                   BILLPIE FORD                  0171-002  $ 24,961.97
S103      [ILLEGIBLE]              95 CHEVY                                ASSOCIATES LEASING            0172-002  $ 22,743.53
S104      [ILLEGIBLE]              92 F250 1 TON BOX TRUCK                 ENTERPRISE                    0172-002  $ 21,580.68
S105      1FTJW35SF9SEA71446       95 F350 1 TON CREW CAB                  ASSOCIATES LEASING            0172-002  $ 25,780.00
S106      [ILLEGIBLE]              KOMATSU 5000LB INDUSTRIAL FORKLIFT      HERTZ                         0171-002  $ 13,000.03
S107      [ILLEGIBLE]              98 YAMAHA 386CC 4X4 ATV                 CANTON FARM EQUIPMENT         0171-002  $  5,295.00
S108      3B7KC23C7SM172833        95 BR2500 RAM                           ASSOCIATES LEASING            0172-002  $ 27,315.00
S200      [ILLEGIBLE]              28' 1985 FRUEHAUF VAN                   FRUEHAUF                      0170-002  $[ILLEGIBLE]
S202      16VAX1213N1A21011        92 BIG TEX UTILITY TRAILER              HARRIS TRAILER SALES          0170-002  $    777.56
S205      FRTO11702                32' SEMI TRAILER                        FRUEHAUF                      0170-002  $  3,843.00
S207      FRTO11708                32' SEMI TRAILER                        FRUEHAUF                      0170-002  $  3,843.00
S208      107101E                  74 GINDY DRY VAN                        FRUEHAUF                      0170-002  $  6,774.12
S209                               HAZDECON MODEL #R-MDF4LP                HAZDECON                      0170-002  $ 26,930.00
S210      983110                   8'X20' DECON TRAILER                    HAZCO/CENTRAL INDUSTRIES      0170-002  $  2,164.00
S300      GC02-2471827             2' TRASH PUMP                           HONDA                         0170-002  $  1,136.10
S301      234-76104-01             3' TRASH PUMP                           MULTIQUIP                     0170-002  $  1,555.13
S302      WAF1009366               3' TRASH PUMP                           HONDA                         0170-002  $  1,295.00
S304      [ILLEGIBLE]              2' SUBMERSIBLE PUMP                     TEEL SYSTEMS                  0170-002  $  1,487.58
S307      08-9527                  PUMP ME/PAPB/TF/FTF/PTS                 WAGNER PROCESS/WILDEN         0170-002  $  2,587.69
S308                               PUMP WIMB/TO/TF/TF/AT                   ARGO/WILDEN                   0170-002  $    985.00
S309                               PUMP WIM1STOTFTFAT                      ARGO/WILDEN                   0170-002  $  1,543.00
S310                               PUMP WIMB/ST/FT/TF/ST                   ARGO/WILDEN                   0170-002  $  2,090.00
S311                               PUMP WIMB/ST/FT/TF/ST                   ARGO/WILDEN                   0170-002  $  2,093.00
S313                               PUMP M8-WIM                             ARGO/WILDEN                   0170-002  $  1,170.00
S314                               PUMP M8-WIM                             ARGO/WILDEN                   0170-002  $    985.00
S317      15-5003                  MIS-00-BN-BN-BN                         PHOENIX PUMPS/WILDEN          0170-002  $  1,232,62
S318      [ILLEGIBLE]              MASTERFLEX 12VDC                        COLE-PARMER/REDI-FLO          0170-002  $  2,369.38
S319                               110 VOLT FUEL PUMP                      REBEL OIL                     0170-002  $    466.94
S321                               PUMP PCISP2GVPNC                        ARGO                          0170-002  $    946.25
S323                               3'DD ALUMINUM PUMP                      HERTZ/WILDEN                  0170-002  $  1,357.38
S324      CA9105 CA9115            TELESCOPIC SHOWER                       SAFETY ENVIRONMENTAL          0170-002  $    899.71
S329                               LUTZ PUMP                               RYAN HERCO                    0170-002  $  1,325.87
S400      1119596                  93 HONDA GENERATOR [ILLEGIBLE]          HILLSBORO HONDA               0170-002  $  2,150.00
S500A                              HIP AIR PACK                            CASCADE/MSA                   0170-002  $  1,748.89
S500B                              HIP AIR PACK                            CASCADE/MSA                   0170-002  $  1,748.89
S500C                              HIP AIR PACK                            CASCADE/MSA                   0170-002  $  1,748.89
S500D                              HIP AIR PACK                            CASCADE/MSA                   0170-002  $  1,748.89
S502A                              HIP AIR PACK                            HAZCO/MSA                     0170-002  $  1,582.73
S502B                              HIP AIR PACK                            HAZCO/MSA                     0170-002  $  1,582.73
S502C                              HIP AIR PACK                            HAZCO/MSA                     0170-002  $  1,582.73
S503A                              HIP AIR PACK                            HAZCO/CASCADE                 0170-002  $  1,359.04
S503B                              HIP AIR PACK                            HAZCO/CASCADE                 0170-002  $  1,359.04
S503C                              HIP AIR PACK                            HAZCO/CASCADE                 0170-002  $  1,359.04
S503D                              HIP AIR PACK                            HAZCO/CASCADE                 0170-002  $  1,359.04
S504A                              HIP AIR PACK                            CASCADE/MSA                   0170-002  $  1,487.58
S504B                              HIP AIR PACK                            CASCADE/MSA                   0170-002  $  1,487.58
S504C                              HIP AIR PACK                            CASCADE/MSA                   0170-002  $  1,487.58
S505A                              HIP AIR PACK                            CASCADE/MSA                   0170-002  $  1,437.50
</TABLE>

<TABLE>
<CAPTION>

 ID                SEP-99                DEP EXP-99             ACCUM 99          NBV
----            -----------             -----------           -----------     -----------
<S>             <C>                     <C>                   <C>             <C>
S100                 (17.19)                 897.51             13,368.61           17.19
S101                 345.53                3,109.00             14,627.58        6,104.42
S102                   0.00                    0.00             24,961.97            0.00
S103                 379.05                3,411.53             20,456.54        2,288.99
S104                 359.88                3,237.10             20,693.47     [ILLEGIBLE]
S105                 429.57             [ILLEGIBLE]           [ILLEGIBLE]        4,640.91
S106                 216.67                1,950.00              4,554.45        8,435.58
S107                  58.25                  794.25           [ILLEGIBLE]        3,674.14
S108                 455.25                4,097.25             24,052.38        3,282.63
S200                 104.45                  940.02              3,874.96        2,391.82
S202                  28.87                   15.98                777.58            0.00
S205                 (14.94)                  79.00              3,843.01            0.00
S207                 (14.94)                  79.00              3,843.01            0.00
S208                 112.90                1,016.12               4,22.53        2,551,59
S209                 345.00                3,105.00             16,215.00       12,765.00
S210                   0.00                    0.00           [ILLEGIBLE]           (0.00
S300                  13.53                  121.73                885.60          270.50
S301                   0.00                   82.69              1,565.13           (0.00
S302                   0.00                   23.74              1,295,00           (0.00
S304                   0.00                    0.00              1,487.58            0.00
S307                  30.57                  275.11                911.94        1,555.75
S308                   0.00                    0.00                917.47           67.53
S309                   0.00                    0.00              1,543.00           (0.00
S310                   0.00                    0.00              2,090.00           (0.00
S311                   0.00                    0.00              2,093.00            0.00
S313                  13.93                  125.36                998.21          171.79
S314                   0.00                    0.00                985.00            0.00
S317                  14.67                  132.07                555.17          577.45
S318                  28.21                  253.66              2,309.21           80.17
S319                   5.80                   52.17                373.90          113.04
S321                  11.25                  101.38                836.61          109.64
S323                  16.16                  145.43                324.28        1,033.12
S324                  10.71                   96.40                770.82          128.89
S329                  22.10                  154.68                154.68        1,171.19
S400                  25.60                  230.36              1,611.51          508.49
S500A                 20.82                  187.38                796.72          952.17
S500B                 20.82                  187.38                796.72          952.17
S500C                 20.82                  187.38                796.72          952.17
S500D                 20.82                  187.38                796.72          952.17
S502A                 18.84                  169.58              1,069.60          513.13
S502B                 18.84                  169.58              1,069.60          513.13
S502C                 18.84                  169.58              1,069.60          513.13
S503A                 16.18                  145.61                837.54          521.50
S503B                 16.18                  145.61                837.54          521.50
S503C                 16.18                  145.61                837.54          521.50
S503D                 16.18                  145.61                837.54          521.50
S504A                  0.00                    0.00              1,487.58            0.00
S504B                  0.00                    0.00              1,487.58            0.00
S504C                  0.00                    0.00              1,487.58            0.00
S505A                 19.49                  175.45              1,595.91           41.59
</TABLE>

                                  Page 1 of 6
<PAGE>   54
<TABLE>
<CAPTION>
  ID               SERIAL                          MAKE & MODEL                        AP VENDOR              FAACCT
  --               ------                          ------------                        ---------              ------
<S>         <C>                         <C>                                     <C>                          <C>
S505B                                   HIP AIR PACK                            CASCADE/MSA                  0170-002
S505C                                   HIP AIR PACK                            CASCADE/MSA                  0170-002
S505D                                   HIP AIR PACK                            CASCADE/MSA                  0170-002
S506                                    HIP AIR PACK                            MSA/SCBA                     0170-002
S507                                    HIP AIR PACK                            MSA/SCBA                     0170-002
S701                                    VAC-U-MAX 55 GAL OPEN TOP               VACU-MAX                     0170-002
S702                                    VAC-U-MAX CLN/U55                       VACU-MAX                     0170-002
S703                                    VAC-U-MAX CLN/U55                       VACU-MAX                     0170-002
S704                                    ASBESTOS VAC                            HACO                         0170-002
S705                                    ASBESTOS VAC                            HACO                         0170-002
S706        CA102ASB-12P                PULLMAN HOLT 12 GAL VACUUM              SAFETY ENVIRONMENTAL         0170-002
S707        CA102ASB-12P                PULLMAN HOLT 12 GAL VACUUM              SAFETY ENVIRONMENTAL         0170-002
S708        CA102ASB-12P                PULLMAN HOLT 12 GAL VACUUM              SAFETY ENVIRONMENTAL         0170-002
S709        CA102ASB-12P                PULLMAN HOLT 12 GAL VACUUM              SAFETY ENVIRONMENTAL         0170-002
S710                                    NILFISK WET/DRY MERCURY VAC             HAZCO                        0170-002
S711                                    NILFISK WET/DRY MERCURY VAC             HAZCO                        0170-002
S712                                    FA200DE NEGATIVE AIR                    SAFETY ENVIRONMENTAL         0170-002
S713                                    FA200DE NEGATIVE AIR                    SAFETY ENVIRONMENTAL         0170-002
S714                                    FA200DE NEGATIVE AIR                    SAFETY ENVIRONMENTAL         0170-002
S715                                    FA200DE NEGATIVE AIR                    SAFETY ENVIRONMENTAL         0170-002
S716                                    FA200DE NEGATIVE AIR                    SAFETY ENVIRONMENTAL         0170-002
S717                                    FA200DE NEGATIVE AIR                    SAFETY ENVIRONMENTAL         0170-002
S722                                    AIRSTRIPPER, SHALLOW TRAY               AIR STRIP                    0170-002
S724                                    CONCRETE VIBRATOR W/MOTOR               LONE STAR NORTHWEST          0170-002
S725                                    FIRE SAFETY CABINET                     C&H DISTRIBUTORS             0170-002
S726                                    FIRE SAFETY CABINET                     C&H DISTRIBUTORS             0170-002
S734                                    1/2" PNEUMATIC DRILL                    GRAINGER                     0170-002
S738        B190                        PNEUMATIC DRUM DEHEADER GA W/3517       WIZARD DRUM TOOL             0170-002
S739        TC16116                     BROOKS ($443,811)                       TARMAC                       0170-002
S740        PD390-3953                  3000 PSI GENERATOR PRESSURE WASHER      LANDA                        0170-002
S741        10074                       SUPER PROLINE DRUM CRUSHER 10-20/70     DRUMBEATERS OF AMERICA       0170-002
S749                                    PH 3000 HYDRALIC SHEAR                  CODE 3 RES Q                 0170-002
S752        DE4800/FR1210               105 GAL TANK W/FUEL PUMP                ACE TANK & EQUIP             0170-002
S756                                    HAZCAT KIT W/SENS. PUMP & TUBES         HAZTECH SYSTEMS              0170-002
S758        26083                       BURIED PIPE & CABLE DETECTOR            MCMASTER CARR SUPPLY         0170-002
S759        933113                      LASER PRO SHOT L1AS                     OPTICO FIELD EQUIPMENT & S   0170-002
S761        K01B1                       EXPLOSIMETER MODEL #1314SMPN            GASTECH                      0170-002
S763        580A-2521B-219              PHOTOIONIZATION DETECTOR MODEL #58      ENVIRONMENTAL INSTRUMEN      0170-002
S764        590A-24612-217              PHOTOIONIZATION DETECTOR MODEL #58      ENVIRONMENTAL INSTRUMEN      0170-002
S765        15326                       100 FT WATER LEVEL INDICATOR            SINCO/SLOPE INDICATOR COM    0170-002
S770                                    MARK 4 DUST FOGGER SYSTEM               TORGERSON MACHINERY          0170-002
S771                                    SPACE RECOVERY UNIT                     ARAMSCO                      0170-002
S773        063415                      AUTO LEVEL W/TRIPOD                     CONTRACTORS WAREHOUSE        0170-002
S774        B0210                       PCB SOIL TEST ANALYZER                  ENSYS                        0170-002
S777                                    3.5 HP GAS BLOWER W/VINYL HOSE DUCT     HAZCO                        0170-002
S778                                    3.5 HP GAS BLOWER W/VINYL HOSE DUCT     HAZCO                        0170-002
S779                                    3.5 HP GAS BLOWER W/VINYL HOSE DUCT     HAZCO                        0170-002
S780                                    3.5 HP GAS BLOWER W/VINYL HOSE DUCT     HAZCO                        0170-002
S781                                    3.5 HP GAS BLOWER W/VINYL HOSE DUCT     HAZCO                        0170-002
S782                                    3.5 HP GAS BLOWER W/VINYL HOSE DUCT     HAZCO                        0170-002
</TABLE>

<TABLE>
<CAPTION>
  ID            BOOK_BASIS           SEP-99             DEP EXP-99          ACCUM-99              NBV
  --            ----------           ------             ----------          --------              ---
<S>             <C>                 <C>                <C>                  <C>                <C>
S505B           $  1,637.50            19.49              175.45             1,593.31               44.18
S505C           $  1,637.50            19.49              175.45             1,593.31               44.19
S505D           $  1,637.50            19.49              175.45             1,593.31               44.19
S506            $  2,694.50             0.00              192.48             2,694.75                0.00
S507            $  2,694.50             0.00                0.00             2,694.75                0.00
S701            $  1,345.85            18.02              144.20               254.22            1,091.63
S702            $    954.55             0.00                0.00               954.56               (0.00)
S703            $    954.55             0.00                0.00               954.56               (0.00)
S704            $  1,300.00            15.48              139.29               513.29              785.71
S705            $  1,300.00            15.48              139.29               513.29              785.71
S706            $    624.06             7.43               66.87               522.79              101.29
S707            $    624.06             7.43               66.87               534.68               89.40
S708            $    624.06             7.43               66.87               534.68               89.40
S709            $    624.06             7.43               66.87               534.68               89.40
S710            $  4,072.38            48.48              436.33             1,016.48            3,055.90
S711            $  4,072.38            48.48              436.33             1,165.77            2,905.61
S712            $    808.13             9.62               86.59               692.36              115.77
S713            $    808.13             9.62               86.59               692.36              115.77
S714            $    808.13             9.62               86.59               692.36              115.77
S715            $    808.13             9.62               86.59               692.36              115.77
S716            $    808.13             9.62               86.59               692.36              115.77
S717            $    808.13             9.62               86.59               692.36              115.77
S722            $ 13,096.00           155.93            1,403.36             5,145.64            7,952.36
S724            $    948.00            11.29              101.57               714.39              233.61
S725            $    794.68             9.48               85.14               530.73              263.95
S726            $    795.00             9.46               85.18               659.86              135.34
S734            $    651.72             7.76               69.83               606.01               43.71
S738            $  3,005.60             0.00              146.70             3,005.60               (0.00)
S739            $443,611.00         5,283.46           47,551.18            65,239.69          358,571.11
S740            $ 10,641.03             0.00                0.00            10,641.03               (0.00)
S741            $ 45,774.30           544.93            4,904.38            25,339.34           20,434.96
S749            $  6,330.43            75.36              576.26             3,197.87            3,132.58
S752            $    689.55             8.21               73.66               307.29              382.26
S756            $  3,007.30            35.80              322.21             1,661.18            1,345.12
S758            $    674.04             8.02               72.22               430.37              243.67
S759            $  3,315.60            39.47              355.24             1,518.33            1,797.27
S761            $  2,324.15             0.00                0.00             2,324.15                0.00
S763            $  4,885.00            56.15              523.39             1,093.31            3,791.68
S764            $  4,925.00            58.63              527.68             1,102.28            3,822.74
S765            $    680.00             8.10               72.66               152.19              527.81
S770            $  2,291.36            27.28              245.51             1,382.10              909.28
S771            $  2,675.88            31.86              286.70             2,056.62              619.06
S773            $    864.86             0.00               51.48               664.68                0.00
S774            $  1,261.50            15.26              137.30             1,000.79              280.71
S777            $  1,118.89            13.32              119.88               388.06              730.83
S778            $  1,118.89            13.32              119.88               388.06              730.83
S779            $  1,118.89            13.32              119.88               388.06              730.83
S780            $  1,118.89            13.32              119.88               388.06              730.83
S781            $  1,118.89            13.32              119.88               388.06              730.83
S782            $  1,118.89            13.32              119.88               388.06              730.83
</TABLE>

                                  PAGE 2 OF 6
<PAGE>   55

<TABLE>
<CAPTION>
  ID               SERIAL                          MAKE & MODEL                        AP VENDOR              FAACCT
  --               ------                          ------------                        ---------              ------
<S>         <C>                         <C>                                     <C>                          <C>
S783                                    3.5 HP GAS BLOWER W/VINYL HOSE DUCT     HAZCO                        0170-002
S784                                    DATA LOGGER TRANSDUCER                                               0170-002
S785                                    VAPOR EXT/GROUND WATER UNIT                                          0170-002
S786                                    WATER TREATMENT VESSELS                 CAMERON-YAKIMA               0170-002
S787                                    WATER TREATMENT VESSELS                 CAMERON-YAKIMA               0170-002
S788                                    WATER TREATMENT VESSELS                 CAMERON-YAKIMA               0170-002
S789                                    WAREHOUSE SECURITY GATE                 ECONOMY FENCE CENTER         0170-002
S790                                    BASIC SOIL AUGER KIT                    NORTHWEST PUMP & EQUIPM      0170-002
S791        000945                      CONNEX BOX                              INSTANT SPACE                0170-002
S792                                    1000LB VAPOR PHASE CARBON VESSELS       SUN-AG                       0170-002
S794        202-2226                    THERMO ANEMOMETER                       GRAINGER                     0170-002
S795        59261                       1000LB PORTABLE BALANCE SCALE           CASCO                        0170-002
S796        DCR-205-15                  DRUM TIPPER 55 GAL/ 180 DEGREE          CLARKLIFT OF SAN DIEGO       0170-002
S797                                    GREASE BARREL CHASSIS PUMP              SPOKANE PUMP/LINCOLN         0170-002
S798        202-2226                    THERMO ANEMOMETER                       GRAINGER                     0170-002
S799                                    DESORBER UNIT REBUILD                   TARMAC                       0170-002
S800        X7329576-1                  445 CDX COMPUTER                        TOSHIBA/COMPUTER CITY        0176-002
S801        X7328877-1                  445 CDX COMPUTER                        TOSHIBA/COMPUTER CITY        0176-002
S802        X7328876-1                  445 CDX COMPUTER                        TOSHIBA/COMPUTER CITY        0176-002
S803        X7311417                    445 CDX COMPUTER                        TOSHIBA/COMPUTER CITY        0176-002
S806        87142380                    445 CDX COMPUTER                        TOSHIBA/COMPUTER CITY        0176-002
S807        87141412                    445 CDX COMPUTER                        TOSHIBA/COMPUTER CITY        0176-002
S808        97278138                    445 CDX COMPUTER                        TOSHIBA/COMPUTER CITY        0176-002
S809        18504350                    305 CDS COMPUTER                        TOSHIBA/COMPUTER CITY        0176-002
S810        67041818                    225 CDS COMPUTER                        TOSHIBA/COMPUTER CITY        0176-002
S811        67041551                    225 CDS COMPUTER                        TOSHIBA/COMPUTER CITY        0176-002
S812        11651633                    205 CDS COMPUTER                        TOSHIBA/COMPUTER CITY        0176-002
S813        10628342                    205 CDS COMPUTER                        TOSHIBA/COMPUTER CITY        0176-002
S814        12895459                    205 CDS COMPUTER                        TOSHIBA/COMPUTER CITY        0176-002
S818        12895318                    205 CDS COMPUTER                        TOSHIBA/COMPUTER CITY        0176-002
S819        83443183                    P100 DESK TOP COMPUTER                  INTEL/COMPUSAVE              0176-002
S820        83442978                    P100 DESK TOP COMPUTER                  INTEL/COMPUSAVE              0176-002
S821        83443180                    P100 DESK TOP COMPUTER                  INTEL/COMPUSAVE              0176-002
S822        6694685                     105 CS COMPUTER                         TOSHIBA/COMPUTER CITY        0176-002
S824        6694770                     105 CS COMPUTER                         TOSHIBA/COMPUTER CITY        0176-002
S825        12688656                    205 CDS COMPUTER                        TOSHIBA/COMPUTER CITY        0176-002
S826                                    200 MMX NOTEBOOK                        TOSHIBA/COMPUTER CITY        0176-002
S827                                    INTER-TEL AXXESS PHONE SYSTEM           TERRA COMMUNICATIONS         0176-002
S828        77085756                    225 CDS COMPUTER                        TOSHIBA/COMPUTER CITY        0176-002
S829        95120264                    TOSHIBA FAX MACHINE                     KELLY BUSINESS MACHINES      0176-002
S830                                    IBM-THINKPAD                            PACIFIC BUSINESS SYSTEMS     0176-002
S831                                    IBM-THINKPAD                            PACIFIC BUSINESS SYSTEMS     0176-002
S832                                    IBM-THINKPAD                            PACIFIC BUSINESS SYSTEMS     0176-002
S833                                    IBM-THINKPAD                            PACIFIC BUSINESS SYSTEMS     0176-002
S834                                    IBM-THINKPAD                            PACIFIC BUSINESS SYSTEMS     0176-002
S836        USKB123324                  HEWLETT 4SI PRINTER                     HEWLETT PACKARD              0176-002
S837        USHC038184                  HEWLETT 4SI PRINTER                     HEWLETT PACKARD              0176-002
S838        JPT001439                   HP LASER 5SI                            HEWLETT PACKARD              0176-002
S839        JP6K048433                  HP LASER 5SI                            HEWLETT PACKARD              0176-002
S841        601908                      P-133 COMPUTER                          COMPUTER CITY                0176-002

<CAPTION>
  ID            BOOK_BASIS           SEP-99             DEP EXP-99          ACCUM-99              NBV
  --            ----------           ------             ----------          --------              ---
<S>             <C>                 <C>                <C>                  <C>                <C>
S783            $   1,118.89           13.32                19.88                388.06            730.83
S784            $   3,023.65           36.00               323.96              2,813.67            209.98
S785            $  48,210.30          585.84               572.53             41,857.61          7,342.49
S786            $   2,841.66           33.83               304.46              2,238.12            805.54
S787            $   2,841.66           33.83               304.46              2,238.12            805.54
S788            $   2,841.66           33.83               304.46              2,238.12            805.54
S789            $   1,081.35           12.87               115.88                821.72            159.83
S790            $     779.00            9.27                83.46                884.00            115.00
S791            $   2,950.00           18.73               283.29              2,850.00              0.00
S792            $   8,120.00           98.87               870.00              7,250.00            870.00
S794            $     592.50            6.70                60.27                107.81            454.68
S795            $     575.00            2.26                52.48                575.00              0.00
S796            $     883.44           10.28                92.51                792.17             71.27
S797            $     759.46            9.04                81.37                850.65            108.80
S798            $     582.50            6.70                90.27                107.81            454.89
S799            $ 334,952.00        3,987.64            35,868.79              35,88.79        299,073.21
S800            $   2,563.31           42.72               364.50                900.01          1,663.30
S801            $   2,563.31           42.72               364.50                900.01          1,663.30
S802            $   2,563.31           42.72               364.50                900.01          1,663.30
S803            $   2,434.90           40.58               365.24                848.90          1,588.10
S806            $   2,610.00           43.50               391.50              1,025.16          1,584.85
S807            $   2,610.02           43.50               391.50              1,025.16          1,584.85
S808            $   2,455.62           40.93               368.34                839.98          1,515.88
S809            $   1,988.28           32.80               295.24                825.48          1,342.80
S810            $   2,980.47           43.17               388.57              1,070.73          1,519.74
S811            $   2,782.42           48.37               417.36              1,255.18          1,527.24
S812            $   2,824.73           43.75               393.71                971.15          1,853,58
S813            $   2,227.09           37.12               564.08              1,374.61            852.48
S814            $   1,878.71           31.31               281.81                994.67            884.04
S818            $   2,034.88           33.91               305.23              1,048.48            958.38
S819            $     856.85           14.28               128.53                255.83            601.23
S820            $     856.85           14.28               128.53                255.83            601.23
S821            $     856.85           14.28               128.53                255.83            601.22
S822            $   2,126.55           35.44               318.98              1,349.18            777.37
S824            $   3,143.42           52.39               471.51              2,107.84          1,035.58
S825            $   2,217.89           38.96               332.68              1,175.48          1,042.41
S826            $   1,976.96           32.95               296.54                571.12          1,405.64
S827            $  32,736.89          389.71             3,507.42              8,808.05         24,655.84
S828            $   2,889.62           48.33               434.94              1,254.89          1,644.73
S829            $   2,850.00           44.17               397.50              1,938.92            711.08
S830            $   2,604.00           43.40               390.60                585.85          2,038,35
S831            $   2,604.23           43.40               390.63                585.70          2,038.53
S832            $   1,372.70           22.88               205.91                298.18          1,074.52
S833            $   1,372.00           22.87               205.80                298.03          1,073.97
S834            $   1,372.00           22.87               205.80                298.03          1,073.97
S836            $   1,406.52            0.00                 0.00              1,406.52             (0.00)
S837            $   1,433.83           23.88               215.01                959.74            474.89
S838            $   1,498.67            0.00                 0.00              4,496.67             (0.00)
S839            $   1,447.84           24.13               217.18              1,321.56            126.28
S841            $   1,778.81           29.65               266.82                935.85            842.98
</TABLE>

                                   PAGE 3 OF 6

<PAGE>   56
<TABLE>
<CAPTION>

  ID         SERIAL               MAKE & MODEL                  AP VENDOR             FAACCT
------   ----------------     -------------------      -----------------------  ------------------
<S>      <C>                  <C>                      <C>                      <C>
S842      500268              P-90  COMPUTER                 COMPUTER CITY            0176-002
S843      601907              P-133 COMPUTER                 COMPUTER CITY            0176-002
S844      M949502099          P-133 COMPUTER                 COMPUTER CITY            0176-002
S845      509131              P-100 COMPUTER                 COMPUTER CITY            0176-002
S646                          P-133 COMPUTER                 COMPUTER CITY            0176-002
S647      M49502096           P-133 COMPUTER                 COMPUTER CITY            0176-002
S648      500267              P-90  COMPUTER                 COMPUTER CITY            0176-002
S849                          P-133 COMPUTER                 COMPUTER CITY            0176-002
S850      601909              P-133 COMPUTER                 COMPUTER CITY            0176-002
S851      601909              P-133 COMPUTER                 COMPUTER CITY            0176-002
S852      62026088            ALDER S10 TYPEWRITER           FIRSTLINE OFFICE         0175-002
S855                          P-90 PCL ELSA FILE SERVER      COMPUTER REPAIR, INC     0176-002
S858                          CET COMPANY SIGN               JIM MANNING & ASSOC.     0175-002
S862                          MAGNA SHELL DESK PANEL         CRAWFORD                 0175-002
S863                          42" HDN LATERAL FILE CABINET   CRAWFORD                 0175-002
S864                          42" HDN LATERAL FILE CABINET   CRAWFORD                 0175-002
S865                          1700CU OFFICE SAFE             SOURCE 100               0175-002
S866                          AUDIO VISUAL BOARD3076         CRAWFORD                 0175-002
S867      Y8215376A           NOTEBOOK COMPUTER              TOSHIBA                  0176-002
S868      Y8214843A           NOTEBOOK COMPUTER              TOSHIBA                  0176-002
S869      Y8202213A           NOTEBOOK COMPUTER              TOSHIBA                  0176-002
S892      500256              P-90 COMPUTER                  COMPUTER                 0176-002
S902      174DVJ2978          GP300 RADIO                    MOTOROLA                 0170-002
S907      174FVJ6950          GP300 RADIO                    MOTOROLA                 0170-002
S909      174FVJ5926          GP300 RADIO                    MOTOROLA                 0170-002
S910      174FVJ6928          GP300 RADIO                    MOTOROLA                 0170-002
S911      174FVJ3215          GP300 RADIO                    MOTOROLA                 0170-002
S914      174FWN1115          GP300 RADIO                    MOTOROLA                 0170-002
S915      174FWND942          GP300 RADIO                    MOTOROLA                 0170-002
S916      174FWLD223          GP300 RADIO                    MOTOROLA                 0170-002
S918      174FWDL211          GP300 RADIO                    MOTOROLA                 0170-002
S919      174FWN1146          GP300 RADIO                    MOTOROLA                 0170-002
S921      174FWN1152          GP300 RADIO                    MOTOROLA                 0170-002
S922      174FWN1145          GP300 RADIO                    MOTOROLA                 0170-002
S935      174FLWD204          GP300 RADIO                    MOTOROLA                 0170-002
S936      174FWN1118          GP300 RADIO                    MOTOROLA                 0170-002
S937      174FWN1144          GP300 RADIO                    MOTOROLA                 0170-002
P100      1FTDF1727VKB15641   97 F150                        FORD                     0172-002
P102      1FTJW36F3VEAS1658   97 F350                        FORD                     0172-002
P105      2FDLFH47MOMCADS     91 F450 FLAT BED               FORD                     0171-002
P111      WC619386            28'x8' RESPONSE TRAILER        WELLS CARGO              0170-002
P200                          15HP OUTBOARD MOTOR            JOHNSON                  0170-002
P201                          15HP OUTBOARD MOTOR            EVINRUDE                 0170-002
P202      SYL492206896        SKIFF & TRAILER                STEVENS MARINE/SYLVAN    0170-002
P203      SMK820288191        SKIFF & TRAILER                SMOKER CRAFT             0170-002
P300                          M-4  PUMP                      WILDEN                   0170-002
P301                          M-15 PUMP                      WILDEN                   0170-002
P302                          M-15 PUMP                      WILDEN                   0170-002
P303                          M-15 PUMP                      WILDEN                   0170-002
P304                          M-15 PUMP                      WILDEN                   0170-002

<CAPTION>
<S>       <C>                 <C>            <C>                 <C>                  <C>
 ID         BOOK BASIS          SEP-99           DEP EXP-99           ACCUM-99            NBV
------   ----------------    -------------   -----------------   ----------------     ----------
S842         4,028.30              67.14              604.25           3,403.91           624.39
S843         1,778.81              29.65              266.82             935.85           842.96
S864         1,991.96              33.20              298.79           1,660.27           131.69
S865         2,207.22              36.79              331.08           1,530.34           676.88
S646         1,372.71              22.68              205.91             624.58           748.13
S647         1,947.65              32.46              292.15           1,818.89           128.76
S648         2,948.14              49.14              442.22           2,491.16           456.95
S849         1,372.70              22.88              205.91             824.58           748.12
S850         1,566.74              26.11              235.01             824.28           742.46
S851         1,566.74              26.11              235.01             824.28           742.48
S852           700.70               0.00                0.00             700.70            (0.00)
S855        20,060.98             343.35            3,009.14          18,951.51         3,109.45
S858         3,080.65              36.68              330.09           2,013.56         1,067.29
S862           503.13               5.88               53.91             309.27           193.88
S863           615.95               7.33               65.93             380.57           235.35
S864           635.78               7.57               68.12             102.43           533.35
S865           773.63               9.21               82.89             597.11           178.52
S866           938.88              10.82               97.38             558.87           350.21
S867         1,303.17              21.72              173.78             173.76         1,129.41
S868         1,303.17              21.72              173.78             173.75         1,129.41
S869         1,303.18              21.72              173.76             173.75         1,129.41
S892         4,028.30              67.14              604.25           3,403.91           624.39
S902         1,074.58              12.79              115.13             650.72           423.86
S907           939.33              11.18              100.64             558.82           370.51
S909           939.33              11.16              100.64             161.77           777.56
S910           939.33              11.18              100.64             568.82           370.51
S911           939.33              11.18              100.64             568.82           370.51
S914         1,064.05              12.67              114.01             497.40           568.65
S915         1,064.05              12.67              114.01             497.40           568.65
S916         1,064.05              12.67              114.01             497.40           568.65
S918           888.60              10.55               94.99             414.45           472.15
S919           888.60              10.55               94.99             414.45           472.15
S921           888.60              10.55               94.99             414.45           472.15
S922           888.60              10.55               94.99             414.45           472.15
S935         1,064.05              12.67              114.01             497.40           568.65
S936           888.60              10.55               94.99             414.45           472.15
S937         1,064.05              12.67              114.01             497.40           568.65
P100        16,511.56             275.19            2,476.73           7,430.20         9,081.36
P102        27,599.40             459.99            4,139.91          17,510.29        10,089.11
P105        22,000.00             966.67            3,300.00          21,095.58           904.44
P111        10,526.00             175.43            1,578.90           6,549.51         3,978.49
P200         1,800.00              15.00              135.00             589.50         1,210.50
P201         1,799.00              14.99              134.83             546.20         1,250.80
P202         2,059.00              34.32              308.85           1,254.85           804.15
P203         2,500.00              41.67              375.00           1,209,72         1,290.26
P300           800.00               7.14               64.29             526.90            73.10
P301         1,500.00              17.86              160.71           1,027.38           472.62
P302         1,500.00              17.86              160.71           1,027.38           472.62
P303         1,500.00              17.86              160.71           1,027.38           472.62
P304         1,500.00              17.86              160.71           1,027.38           472.62
</TABLE>

                                  Page 4 of 6
<PAGE>   57
<TABLE>
<CAPTION>
ID           SERIAL          MAKE & MODEL                      AP VENDOR              FAACCT     BOOK_BASIS     SEP-99    DEP EXP-99
----      ------------    ----------------------------------   ---------------------  --------   -----------    ------   -----------

<S>       <C>             <C>                                  <C>                    <C>        <C>            <C>      <C>
P305                      M-4 PUMP                             WILDEN                 0170-002   $    600.00      7.14      64.28
P306      9201            FLOTO PUMP                           WATERIOUS              0170-002   $  1,500.00     17.95     150.71
P307      169322          VAC-U-MAX CLOSED TOP                 VACUMAX                0170-002   $    900.00     10.71      96.43
P400      1457476         2.2 KW-GENERATOR                     DAYTON                 0170-002   $    500.00      5.95      53.57
P403      EA7-1134068     EM50005 GENERATOR                    HONDA                  0170-002   $  2,399.00     28.58     257.04
P404      12018           AIR COMPRESSOR                       SULLIVAN               0170-002   $ 15,000.00    178.57   1,607.14
P500      ALT285194358    IASA SCBA                            ULTRALITE              0170-002   $  1,900.00     22.52     203.57
P501      ALT285155242    MSA SCBA                             ULTRALITE              0170-002   $  1,900.00     22.62     203.57
P502      ALT295194296    MSA SCBA                             ULTRALITE              0170-002   $  1,900.00     22.62     203.57
P508                      HIP AIR PACK                         MSA                    0170-002   $  1,000.00     11.90     107.14
P509                      HIP AIR PACK                         MSA                    0170-002   $  1,000.00     11.90     107.14
P510      ALT285224729    MSA SCBA                             ULTRALITE              0170-002   $  1,900.00     22.62     203.57
P511      TP705-1727      BIO SYSTEM                           BIO SYSTEMS            0170-002   $  1,000.00     23.51     214.29
P512      TP806-2229      BIO SYSTEM                           BIO SYSTEMS            0170-002   $  2,000.00     23.81     214.29
P513      M003-2933       BIO SYSTEM                           BIO SYSTEMS            0170-002   $  2,000.00     23.81     214.29
P600                      400 OIL CONTAINMENT BOOM             AMERICAN SEA CURTAIN   0170-002   $  4,475.00     53.27     479.46
P708      9108143008      LEL METER                            INDUSTRIAL SCIENTIFIC  0170-002   $  1,100.00     13.10     117.66
P714                      2400 FAST TANK                       TENYERS                0170-002   $  3,150.00     37.50     337.50
P720                      COPPUS BLOWER                        COPPUS                 0170-002   $  1,500.00     17.56     180.71
P721                      COPPUS BLOWER                        COPPUS                 0170-002   $  2,934.00     34.94     314.45
P722      WD796-6101      ALPHA 3100 OILWATER SEPARATOR        LANDA                  0170-002   $  8,835.50     81.38     732.38
P723      VB564034        WELDING MACHINE                      MILLER                 0170-002   $    500.00      5.95      53.57
P724      07921174        CONFINED SPACE SYSTEM MODEL #K1550                          0170-002   $  3,100.00     36.90     332.14
P725                      WRENCH SET/TOOLS                     CRAFTSMAN              0170-002   $    510.24      6.07      54.67
P730      54699V          FALL PROTECTION & RETRIEVE           MILLER                 0170-002   $  2,200.00     25.19     235.71
P731      CC0243          LASER TRANSIT                                               0170-002   $    895.00     10.65      95.89
P732      973500003       HEPA VAC                             EUROCLEAN              0170-002   $  1,225.00     14.56     131.25
P733      9735000032      HEPA VAC                             EUROCLEAN              0170-002   $  1,225.00     20.42     183.75
P734      973500006       HEPA VAC                             EUROCLEAN              0170-002   $  1,225.00     14.58     131.25
P735      973500005       HEPA VAC                             EUROCLEAN              0170-002   $  1,225.00     14.58     131.25
P737      903046013       LEL METER                            INDUSTRIAL SCIENTIFIC  0170-002   $    500.00      5.95      53.57
P738      53625V          FALL PROTECTION/BLOCK                MILLER                 0170-002   $  1,474.85     17.56     158.02
P739                      SOIL SAMPLER BORE KIT                ARTS MANUFACTURING     0170-002   $  1,000.00     11.90     107.14
P740      TK-02           VAC-U-MAX CLOSED TOP DRUM            VAC-U-MAX              0170-002   $  1,000.00     11.90     107.14
P741      55D-D61         VAC-U-MAX OPEN TOP DRUM              VAC-U-MAX              0170-002   $  1,000.00     11.90     107.14
P743                      FILTER PRESS                         ELMCO                  0170-002   $  2,000.00     23.61     214.29
P744                      EXPLOSION PROOF LIGHTS                                      0170-002   $    900.00     10.71      96.43
P745                      HAZCAT KIT                           HAZTECH                0170-002   $  2,713.23     32.30     290.70
P746      38511847X7      CHAIN SAW                            STILH                  0170-002   $    446.90      5.32      47.88
P802      D75453111       LAPTOP                               TOSHIBA                0176-002   $  2,009.57     33.50     301.48
P804                      COMPUTER                             GATEWAY                0176-002   $  2,590.00      0.00      56.79
P807      11BHNTZ         TYPEWRITER                           IBM                    0170-002   $    575.00      9.58      89.25
P808                      AUTOMATED PHONE SYSTEM               SAMSUNG                0175-002   $ 13,774.32    153.96   1,475.82
P809                      435 CDS LAPTOP                       TOSHIBA                0176-002   $  1,585.95     26.43     237.89
P908                      CELL PHONE                           MOTOROLA               0170-002   $    500.00      0.00       0.00
P909                      CELL PHONE                           MOTOROLA               0170-002   $    500.00      0.00       0.00
P910                      CELL PHONE                           MOTOROLA               0170-002   $    500.00      0.00     211.11
P911                      CELL PHONE                           MOTOROLA               0170-002   $    500.00      0.00     211.11
P912                      CELL PHONE                           MOTOROLA               0170-002   $    500.00      0.00     211.11
                          OFFICE FILES                         DELATTE METALS         0174-002   $    785.94      9.38      46.78

<CAPTION>
ID            ACCUM-99      NBV
----        ----------   ---------

<S>         <C>          <C>
P305           410.95       189.05
P306           882.74       617.25
P307           616.43       283.57
P400           439.08        60.91
P403         1,041.47     1,357.53
P404        10,273.81     4,725.19
P500         1,164.88       735.12
P501         1,301.35       596.65
P502         1,301.35       596.65
P508           684.92       315.08
P509           684.92       315.08
P510         1,301.35       698.65
P511         1,369.84       630.16
P512         1,368.54       630.16
P513         1,389.54       630.16
P600         1,930.29     2,544.71
P708           753.41       346.59
P714         2,583.75       568.25
P720         1,027.38       472.52
P721         1,541.99     1,392.91
P722         2,948.49     3,887.01
P723           342.46       157.54
P724         2,123.25       876.75
P725           220.09       290.15
P730           516.83     1,665.17
P731           222.68       872.32
P732           312.57       912.43
P733           437.60       787.40
P734           312.57       912.43
P735           312.57       912.43
P737           342.48       157.54
P738         1,010.16       464.89
P739           684.92       315.08
P740           215.87       784.13
P741           215.87       784.13
P743         1,060.16       819.84
P744           618.43       283.57
P745           812.89     1,900.34
P746           194.01       252.89
P802         1,258.40       751.47
P804         2,690.00        (1.00)
P807           345.32       229.58
P808         3,312.40    10,481.92
P809           728.95       857.29
P908           500.00         0.00
P909           500.00         0.00
P910           500.00         0.00
P911           500.00         0.00
P912           500.00         0.00
                48.78       739.18
</TABLE>

                                  Page 5 of 6
<PAGE>   58
<TABLE>
<CAPTION>
  ID               SERIAL                          MAKE & MODEL                        AP VENDOR              FAACCT
  --               ------                          ------------                        ---------              ------
<S>         <C>                         <C>                                     <C>                          <C>
                                        TOSHIBA                                 ANDREA LINDQUIST             0176-002
                                        TOSHIBA                                 LAURIE TEUN                  0176-002
                                        TOSHIBA                                 BRYAN CHERNICK               0176-002
                                        HP LASER JET 5SI                        COMPUTERS & APPLICATIONS     0176-002
                                        15 HP 3 PHASE MOTOR                     DAVIS PUMP & ELECTRIC        0170-002
                                        PH METER PROBE/RECEPTACLE               TBI BAILEY                   0170-002
                                        101165 DIGITEC PRINT                    MOUNTAIN PACIFIC MACHINE     0170-002
                                        TOSHIBA                                 CAROL TIERNEY                0176-002
                                        TOSHIBA                                 LAURIE TEUN                  0176-002
</TABLE>

<TABLE>
<CAPTION>
  ID           BOOK_BASIS             SEP-99             DEP EXP-99          ACCUM-99              NBV
  --           ----------             ------             ----------          --------              ---
<S>          <C>                 <C>                <C>                  <C>                <C>
             $       800.00            13.33              105.67               105.67              693.33
             $     1,521.45            25.36              177.50               177.50            1,343.96
             $       790.20            13.17               52.68                52.68              737.52
             $     2,334.84            38.91              116.74               116.74            2,218.10
             $       694.02            11.57               23.13                23.13              670.89
             $     1,237.14            20.82               41.24                41.24            1,195.90
             $     2,197.25            36.62               73.24                73.24            2,124.01
             $     1,646.17            30.77               61.54                61.54            1,784.53
             $     1,751.75            29.20               58.39                58.39            1,593.36

             $ 1,663,351.18      $ 20,257.41        $ 183,975.96         $ 697,014.67       $  868,346.51
</TABLE>

FURNITURE AND EQUIPMENT

                                  Page 6 of 6
<PAGE>   59

                                                                   SCHEDULE 1.E.
                                                                ANCILLARY ASSETS

         Ancillary Assets as defined in the Asset Purchase and Assignment
Agreement shall mean and include all documents, books and records, instruments,
databases, stationary, preprinted forms, programs, records, intangibles,
consultants' reports and memoranda, customer, vendor and supplier lists, trade
secrets and other proprietary or confidential information, work files and work
products necessary for closing out delivery orders, telephone numbers and other
assets of Seller, in each case which relate solely or primarily to the Acquired
Assets or are used solely or primarily with Acquired Assets or are used solely
or primarily in the performance of the EPA Contracts. Ancillary Assets shall
not include any EPA Contract Equipment or Excluded Assets.

                                       24

<PAGE>   60

                                  SCHEDULE 3.C

                         SCHEDULE OF ASSUMED LIABILITIES

The only liabilities of Sellers that Purchaser shall be obligated to assume are
as follows:

(1)      The direct obligations of Sellers under the EPA Contracts relating to
         performance after the Closing Date; and

(2)      Obligations and liabilities of Sellers, whether to the EPA or third
         parties that can be reasonably and foreseeably implied from the terms
         of the EPA Contracts or the Federal Acquisition Regulations as
         necessary or required in connection with the assumption, novation or
         performance of the EPA Contracts, from and after the Closing Date.
         Examples of the foregoing shall include, but are not limited to, any
         obligations of Sellers under the EPA Contracts to use minority or small
         business contractors or the requirement to lease or acquire particular
         items of equipment necessary to complete performance under the EPA
         Contracts. This does not include government or third party claims
         arising out of Seller's performance of the EPA contract prior to the
         Closing Date.

(3)      Seller leases at the property located at 170 West Dayton, Edmonton, WA.

                                       25

<PAGE>   61

                                                                    SCHEDULE 1.D
                                                          EDMONDS FACILITY LEASE

                               SEE ATTACHED LEASE

                                       26

<PAGE>   62
                               JOB STATUS SUMMARY
                                   ERRS WEST
                            CONTRACT NO. 68-W7-0016
                           08/01/99 THROUGH 08/31/99

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------
REGION 6
-----------------------------------------------------------------------------------------------
                                                                   D.O.
-----------------------------------------------------------------------------------------------
 D.O.               Project                   Start             Completion             D.O.
-----------------------------------------------------------------------------------------------
 No.                 Name                      Date                Date              Ceiling
===============================================================================================
<S>       <C>                                <C>                 <C>               <C>
06-001    Shepherd Lead                      02/27/97            06/05/97            300,000.00
-----------------------------------------------------------------------------------------------
06-002    Mylar Fire                         03/26/97            04/30/97            500,000.00
-----------------------------------------------------------------------------------------------
06-003    Arkansas Methyl Parathion          03/31/97            08/31/98            600,000.00
-----------------------------------------------------------------------------------------------
06-004    Louisiana Methyl Parathion         04/11/97            01/08/99          3,025,000.00
-----------------------------------------------------------------------------------------------
06-005    BPS Inc., Fire                     05/08/97            06/30/97            100,000.00
-----------------------------------------------------------------------------------------------
06-006    Victory Metals                     05/16/97            11/30/97            185,000.00
-----------------------------------------------------------------------------------------------
06-007    Mammoth Mill                       06/09/97            01/08/98            180,000.00
-----------------------------------------------------------------------------------------------
06-008    Gray Ag-Air Site                   06/24/97            10/31/97            350,000.00
-----------------------------------------------------------------------------------------------
06-009    Garland Drum                       06/24/97            07/31/97             25,000.00
-----------------------------------------------------------------------------------------------
06-010    JFK High School                    06/25/97            10/31/97            100,000.00
-----------------------------------------------------------------------------------------------
06-011    Pontchatula Battery                07/18/97            10/15/97            120,000.00
-----------------------------------------------------------------------------------------------
06-012    Preplanning Region 6               03/20/98            01/08/00             55,000.00
-----------------------------------------------------------------------------------------------
06-013    Odessa Drum                        07/18/97            01/08/98          1,000,000.00
-----------------------------------------------------------------------------------------------
06-014    Southern Shipbuilding              08/21/97            10/30/97            150,000.00
-----------------------------------------------------------------------------------------------
06-015    Mill Creek Drum                    08/06/97            10/31/97             40,000.00
-----------------------------------------------------------------------------------------------
06-016    Hot Springs Mercury                09/10/97            10/31/97            100,000.00
-----------------------------------------------------------------------------------------------
06-017    Richland Oil Salvage, Inc.         09/23/97            01/08/98            400,000.00
-----------------------------------------------------------------------------------------------
06-018    Stephenson-Bennett Mine Site       09/30/97            02/28/99          3,843,000.00
-----------------------------------------------------------------------------------------------
06-019    Mesh Plastics                      09/30/97            01/08/98            100,000.00
-----------------------------------------------------------------------------------------------
06-020    Polycycle-Tecula                   10/23/97            11/30/98             20,000.00
-----------------------------------------------------------------------------------------------
06-021    Overholt Trucking                  11/06/97            06/30/98          1,532,000.00
-----------------------------------------------------------------------------------------------
06-022    Anti-freeze, Inc.                  12/03/97            07/31/98            600,000.00
-----------------------------------------------------------------------------------------------
06-023    Lake Maurapas Barge                12/02/97            06/30/98            200,000.00
-----------------------------------------------------------------------------------------------
06-024    Texarkana Mercury and Neon         01/06/98            07/31/98            355,000.00
-----------------------------------------------------------------------------------------------
06-025    Dallas Plating                     01/08/98            07/31/98            263,000.00
-----------------------------------------------------------------------------------------------
06-026    Everman Oil Spill                  02/02/98            03/31/98             50,000.00
-----------------------------------------------------------------------------------------------
06-027    Broussard Chemical                 02/20/98            05/31/98             75,000.00
-----------------------------------------------------------------------------------------------
06-028    Lake Palourde Aband. Barge         02/11/98            10/31/98            175,000.00
-----------------------------------------------------------------------------------------------
06-029    Guthrie Oil                        04/13/98            08/31/98             80,000.00
-----------------------------------------------------------------------------------------------
06-630    Castex Systems                     03/09/98            07/31/99          1,250,000.00
-----------------------------------------------------------------------------------------------
06-631    Plano Mercury                      03/05/98            05/30/98             50,000.00
-----------------------------------------------------------------------------------------------
</TABLE>
<PAGE>   63
                               JOB STATUS SUMMARY
                                   ERRS WEST
                            CONTRACT NO. 68-W7-0016
                           08/01/99 THROUGH 08/31/99

<TABLE>
<S>       <C>                                     <C>            <C>            <C>
============================================================================================
06-632    11th Street Drums                       04/01/98       07/31/98         110,000.00
--------------------------------------------------------------------------------------------
06-633    Clearwater Fluids Recycling             04/06/98       01/07/99         690,000.00
--------------------------------------------------------------------------------------------
06-634    Louisiana Oil Recycling, Inc.           04/10/98       01/07/99         500,000.00
--------------------------------------------------------------------------------------------
06-635    FM 14 Drum Site                         05/14/98       09/30/98         500,000.00
--------------------------------------------------------------------------------------------
06-636    Penrod Drum                             06/01/98       09/30/98         450,000.00
--------------------------------------------------------------------------------------------
06-637    Westbank Asbestos                       07/10/98       09/30/98         220,000.00
--------------------------------------------------------------------------------------------
06-638    Mid-South Tire Fire                     07/16/98       10/31/98         150,000.00
--------------------------------------------------------------------------------------------
06-639    Concord Operating Co.                   07/27/98       10/31/98           5,000.00
--------------------------------------------------------------------------------------------
06-640    Bayou Sorrel Aband. Barge               07/30/98       01/08/99         300,000.00
--------------------------------------------------------------------------------------------
06-641    Ojo Caliente Dip Vat Site               08/07/98       11/30/98         118,000.00
--------------------------------------------------------------------------------------------
06-642    Hudson Oil Refinery                     08/11/98       09/15/99       5,950,000.00
--------------------------------------------------------------------------------------------
06-643    ERI Tire Fire                           08/24/98       01/08/99         500,000.00
--------------------------------------------------------------------------------------------
06-644    Delatte Metals                          08/27/98       09/08/99       7,905,881.00
--------------------------------------------------------------------------------------------
06-645    Talen's Landing Bulk Plant              09/08/98       09/08/99       1,350,000.00
--------------------------------------------------------------------------------------------
06-646    Hastings Radiochemical Sites            09/28/98       06/30/99       1,500,000.00
--------------------------------------------------------------------------------------------
06-647    MDI                                     09/28/98       09/30/99         600,000.00
--------------------------------------------------------------------------------------------
06-648    Tex-Tin Site (off-site)                 09/28/98       09/30/99         500,000.00
--------------------------------------------------------------------------------------------
06-649    State Marine Site                       09/29/98       09/30/99          40,000.00
--------------------------------------------------------------------------------------------
06-650    Madisonville Tire/Drum Fire             10/04/98       10/04/99          65,000.00
--------------------------------------------------------------------------------------------
06-651    Limestone Landfill Fire                 10/07/98       09/30/99         200,000.00
--------------------------------------------------------------------------------------------
06-652    Oilton Auto Pack Site                   12/18/98       09/15/99          40,000.00
--------------------------------------------------------------------------------------------
06-653    R&P Electroplating                      01/06/99       09/30/99         900,000.00
--------------------------------------------------------------------------------------------
06-654    Production Gauging Services, Inc.       01/07/99       04/30/99         250,000.00
--------------------------------------------------------------------------------------------
06-655    Leachville Metal Plating Site           02/25/99       12/31/99         175,000.00
--------------------------------------------------------------------------------------------
06-656    Hudson Oil Refinery II                  03/26/99       01/08/00         900,000.00
--------------------------------------------------------------------------------------------
06-657    Sulfur Molten Tank Fire                 04/08/99       05/09/99         200,000.00
--------------------------------------------------------------------------------------------
06-658    O'Neil Tank Battery                     04/26/99       08/30/99         150,000.00
--------------------------------------------------------------------------------------------
06-659    Tiger Pass                              05/10/99       01/08/00         950,000.00
--------------------------------------------------------------------------------------------
06-660    W. Duet No. 1 Well Gas Blowout          05/14/99       06/30/99       1,400,000.00
--------------------------------------------------------------------------------------------
06-661    HHW, OK Tornadoes                       05/18/99       09/30/99          50,000.00
--------------------------------------------------------------------------------------------
06-662    The Chemical House                      05/24/99       09/30/99         200,000.00
--------------------------------------------------------------------------------------------
06-663    OK Tornado II                           06/01/99       01/08/00         425,000.00
--------------------------------------------------------------------------------------------
06-664    Rockwall Mercury                        06/16/99       10/31/99         100,000.00
--------------------------------------------------------------------------------------------
06-665    Ruston Foundary                         06/28/99       08/31/99          40,000.00
--------------------------------------------------------------------------------------------
06-666    Exxon Houston Ship Channel              06/28/99       07/31/99           8,000.00
============================================================================================
</TABLE>
<PAGE>   64
                               JOB STATUS SUMMARY
                                   ERRS WEST
                            CONTRACT NO. 68-W7-0016
                           08/01/99 THROUGH 08/31/99

<TABLE>
===============================================================================================
<S>         <C>                                     <C>             <C>           <C>
06-667      Arabi Mercury Spill                     07/09/99        10/31/99          50,000.00
-----------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------
08-001      Spring Creek Oil Spill                  02/28/97        07/09/97          10,000.00
-----------------------------------------------------------------------------------------------
08-002      Oklahoma City Bomb. / G7 Conf.          03/10/97        07/01/98          22,000.00
-----------------------------------------------------------------------------------------------
08-003      Aspen Park Solvents                     03/10/97        01/08/00         105,000.00
-----------------------------------------------------------------------------------------------
08-004      Lovell Refining                         03/10/97        09/30/99         298,720.00
-----------------------------------------------------------------------------------------------
08-005      Industrial Chrome Plating               03/13/97        01/08/98         300,000.00
-----------------------------------------------------------------------------------------------
08-006      York Street Drums                       03/12/97        06/01/97           7,500.00
-----------------------------------------------------------------------------------------------
08-007      Twins Inn Site                          03/27/97        01/08/99          14,500.00
-----------------------------------------------------------------------------------------------
08-008      Roxborough Mercury Site                 04/01/97        07/01/97           5,000.00
-----------------------------------------------------------------------------------------------
08-009      Red River of North Dakota               04/24/97        01/08/98       3,250,000.00
-----------------------------------------------------------------------------------------------
08-010      Allison Street Drum Site                06/02/97        09/01/97          10,000.00
-----------------------------------------------------------------------------------------------
08-011      Red Water Mine Site                     06/13/97        10/31/98         245,000.00
-----------------------------------------------------------------------------------------------
08-012      Ramp Industries                         06/19/97        01/08/98          80,000.00
-----------------------------------------------------------------------------------------------
08-013      Badger Mercury Site                     06/25/97        11/30/97          18,500.00
-----------------------------------------------------------------------------------------------
08-014      Flathead Lake Boat Site                 07/04/97        07/31/97           5,000.00
-----------------------------------------------------------------------------------------------
08-015      Reclaim Barrel Site                     07/18/97        05/01/98          64,000.00
-----------------------------------------------------------------------------------------------
08-016      Towaac Day Care Center                  08/05/97        10/30/97           3,000.00
-----------------------------------------------------------------------------------------------
08-017      Upper AR River / Leadville              09/22/97        01/08/00         500,000.00
-----------------------------------------------------------------------------------------------
08-018      Manville Pesticide Site                 09/25/97        09/30/98         390,000.00
-----------------------------------------------------------------------------------------------
08-019      Ute Tribe Chemical Site                 10/16/97        04/01/98          35,000.00
-----------------------------------------------------------------------------------------------
08-020      Bull Oil Site                           10/28/97        04/01/98          72,000.00
-----------------------------------------------------------------------------------------------
08-021      Wounded Knee Sew. Lagoon                11/06/97        01/08/98          45,000.00
-----------------------------------------------------------------------------------------------
08-022      Craig Diesel Spill-Yampa River          11/07/97        01/08/98           1,000.00
-----------------------------------------------------------------------------------------------
08-023      32nd Street Asphalt Site                11/10/97        11/30/97           1,000.00
-----------------------------------------------------------------------------------------------
08-024      38th and York PCB                       02/06/98        09/01/98          81,000.00
-----------------------------------------------------------------------------------------------
08-025      High-Tech Metals                        02/19/98        08/30/98         190,000.00
-----------------------------------------------------------------------------------------------
08-026      Craig Mercury Site                      03/20/98        08/30/98          15,000.00
-----------------------------------------------------------------------------------------------
08-027      Preplanning Region 8                    03/30/98        01/08/00          55,000.00
-----------------------------------------------------------------------------------------------
08-028      Sandy Smelter                           04/01/98        03/31/99       1,850,000.00
-----------------------------------------------------------------------------------------------
08-029      54th Street Drums                       04/17/98        07/30/98          13,000.00
-----------------------------------------------------------------------------------------------
08-830      Leadville Drums                         05/19/98        10/31/98          23,000.00
-----------------------------------------------------------------------------------------------
08-831      Hansen Container                        05/28/98        12/31/98          22,000.00
-----------------------------------------------------------------------------------------------
08-832      Sheridan PCM Drum                       05/22/98        12/31/98           7,000.00
-----------------------------------------------------------------------------------------------
08-833      Pine Ridge Pesticide Site               06/12/98        10/31/98          11,000.00
===============================================================================================
</TABLE>
<PAGE>   65
                               JOB STATUS SUMMARY
                                   ERRS WEST
                            CONTRACT NO. 68-W7-0016
                           08/01/99 THROUGH 08/31/99

<TABLE>
<CAPTION>
=======================================================================================
<S>       <C>                                     <C>       <C>          <C>
08-834    58th and York                           07/16/98   10/31/98          7,000.00
---------------------------------------------------------------------------------------
08-835    Summitville Drum                        07/30/98   06/30/99        250,000.00
---------------------------------------------------------------------------------------
08-836    Upper Arkansas River Lagoon             07/30/98   10/31/98         24,500.00
---------------------------------------------------------------------------------------
08-837    Vasquez and I-70                        09/22/98   06/30/99        785,000.00
---------------------------------------------------------------------------------------
08-838    Weld County Waste Disposal              09/25/98   10/01/99      2,195,000.00
---------------------------------------------------------------------------------------
08-839    Basin Tailings Site                     10/08/98   06/30/99        355,000.00
---------------------------------------------------------------------------------------
08-840    R.J. Refinery Site                      10/13/98   06/30/99         17,000.00
---------------------------------------------------------------------------------------
08-841    Davis Post & Pole                       10/26/98   08/01/99        135,000.00
---------------------------------------------------------------------------------------
08-842    Santa Fe Tanker Site                    12/05/98   11/01/99         20,000.00
---------------------------------------------------------------------------------------
08-843    Fenton Culvert                          01/15/99   03/30/99         25,000.00
---------------------------------------------------------------------------------------
08-844    Rosebud Indian Reservation              02/05/99   04/30/99          5,000.00
---------------------------------------------------------------------------------------
08-845    Ute Mountain Indian Reservation         02/11/99   04/30/99          9,500.00
---------------------------------------------------------------------------------------
08-046    Thornton Mercury Site                   03/11/99  not listed         6,500.00
---------------------------------------------------------------------------------------
08-847    Wade Field Services, Inc.               04/15/99   09/30/99         39,000.00
---------------------------------------------------------------------------------------
08-848    Pleasant View PCE Site                  04/21/99   09/30/99         35,000.00
---------------------------------------------------------------------------------------
08-849    Manvel Pesticide Site                   05/18/99   01/08/00         15,000.00
---------------------------------------------------------------------------------------
08-850    Monroe Chemical                         05/26/99   01/08/00        100,000.00
---------------------------------------------------------------------------------------
08-851    Montezuma County Pesticide              06/02/99   01/08/00         13,000.00
---------------------------------------------------------------------------------------
08-852    Upper Ten Mile Creek                    06/10/99   01/08/00      4,000,000.00
---------------------------------------------------------------------------------------
08-853    Kenco Refinery                          06/11/99   01/08/00         24,000.00
---------------------------------------------------------------------------------------
08-854    Upper AR River Fluvial Tailings II      07/09/99   01/08/00        350,000.00
---------------------------------------------------------------------------------------
08-855    Lockwood Solvents                       07/14/99   01/08/00          5,000.00
---------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------
09-001    Sutter County, California               01/15/97   06/30/99        200,000.00
---------------------------------------------------------------------------------------
09-002    San Joaquin County, California          01/15/97   06/30/97        100,000.00
---------------------------------------------------------------------------------------
09-003    McCormick & Baxter                      03/03/97   10/31/97        455,000.00
---------------------------------------------------------------------------------------
09-004    Enviropur West                          02/28/97   06/30/98      1,600,000.00
---------------------------------------------------------------------------------------
09-005    Fresno Drum                             02/26/97   12/08/98        368,000.00
---------------------------------------------------------------------------------------
09-006    DC Metals                               03/01/97   09/30/99        790,000.00
---------------------------------------------------------------------------------------
09-007    Del Norte                               02/26/97   03/31/99        155,000.00
---------------------------------------------------------------------------------------
09-008    Frontier Fertilizer                     02/26/97   06/30/97         35,000.00
---------------------------------------------------------------------------------------
09-009    Yuba County, California                 02/26/97   06/30/97         75,000.00
---------------------------------------------------------------------------------------
09-010    Household Hazardous Waste               02/28/97   06/30/97        400,000.00
---------------------------------------------------------------------------------------
09-011    Moorpark Meth Lab                       03/17/97   09/30/97        100,000.00
---------------------------------------------------------------------------------------
09-012    Proto Metals                            04/07/97   07/31/97        139,000.00
=======================================================================================
</TABLE>

<PAGE>   66
                               JOB STATUS SUMMARY
                                   ERRS WEST
                            CONTRACT NO. 68-W7-0016
                           08/01/99 THROUGH 08/31/99

<TABLE>
============================================================================================
<S>         <C>                                 <C>             <C>             <C>
09-013      Geo Operator Corp. / Unit 15        04/17/97        01/08/98        1,300,000.00
--------------------------------------------------------------------------------------------
09-014      Republic of Palau                   04/14/97        06/30/98          330,000.00
--------------------------------------------------------------------------------------------
09-015      American Samoa                      05/01/97        08/01/97           25,000.00
--------------------------------------------------------------------------------------------
09-016      Freelove Meth Lab / Valleyhome      05/05/97        09/30/97           72,000.00
--------------------------------------------------------------------------------------------
09-017      Ocean Park Lead                     05/12/97        09/30/97           60,000.00
--------------------------------------------------------------------------------------------
09-018      Lola and White Streets              06/20/97        07/31/97            5,000.00
--------------------------------------------------------------------------------------------
09-019      PEMACO                              08/01/97        01/08/00        1,100,000.00
--------------------------------------------------------------------------------------------
09-020      South Idaho Floods                  06/26/97        07/31/97           15,000.00
--------------------------------------------------------------------------------------------
09-021      Gentry Subdivision PCB Site         07/08/97        09/30/97           52,000.00
--------------------------------------------------------------------------------------------
09-022      Palermo Wells Site                  07/11/97        09/30/97           50,000.00
--------------------------------------------------------------------------------------------
09-023      Toro Creek                          07/15/97        01/08/00          340,000.00
--------------------------------------------------------------------------------------------
09-024      Iron Mountain Mine                  08/01/97        03/31/98          600,000.00
--------------------------------------------------------------------------------------------
09-025      Duck Valley                         09/15/97        09/30/99           24,000.00
--------------------------------------------------------------------------------------------
09-026      Leviathan Mine                      09/24/97        09/25/98          600,000.00
--------------------------------------------------------------------------------------------
09-027      Byers Bomb Site                     09/22/97        09/30/99        1,050,000.00
--------------------------------------------------------------------------------------------
09-028      Navajo Forest Products Ind.         09/24/97        09/30/98           80,000.00
--------------------------------------------------------------------------------------------
09-029      Bakersfield Chrome & Bumper         09/24/97        06/30/98          130,000.00
--------------------------------------------------------------------------------------------
09-030      Lava Cap Mine                       10/15/97        12/31/98          525,000.00
--------------------------------------------------------------------------------------------
09-031      K&L Plating / Pearmain              09/30/97        06/30/98          600,000.00
--------------------------------------------------------------------------------------------
09-032      K&L Plating / 89th                  10/03/97        06/30/98          500,000.00
--------------------------------------------------------------------------------------------
09-033      Pala Drug Lab                       09/25/97        01/08/98           10,000.00
--------------------------------------------------------------------------------------------
09-034      Eagle 1 Mill                        10/06/97        06/30/98          100,000.00
--------------------------------------------------------------------------------------------
09-035      Tuolumne Indian Reservation         10/10/97        01/08/98           10,000.00
--------------------------------------------------------------------------------------------
09-036      PRC Patterson                       11/05/97        03/31/99          300,000.00
--------------------------------------------------------------------------------------------
09-037      West Cap                            03/05/98        03/31/99          518,500.00
--------------------------------------------------------------------------------------------
09-938      The Syntrum Corporation             02/09/98        09/30/99        1,205,549.00
--------------------------------------------------------------------------------------------
09-039      Preplanning Region 9                02/12/98        01/08/00           50,000.00
--------------------------------------------------------------------------------------------
09-040      Bay Blvd. / Lagoon Drive            03/05/98        09/30/98          100,000.00
--------------------------------------------------------------------------------------------
09-041      Indian Basin Boatyard               04/09/98        09/30/98          180,000.00
--------------------------------------------------------------------------------------------
09-042      Gambonini Mercury Mine              04/10/98        09/30/99        2,750,000.00
--------------------------------------------------------------------------------------------
09-943      Alcoa Pacific                       04/21/98        09/30/98           35,000.00
--------------------------------------------------------------------------------------------
09-944      Kingsbury Creek Mine                06/12/98        01/08/98           60,000.00
--------------------------------------------------------------------------------------------
09-945      Cappell Road                        07/22/98        01/08/99          200,000.00
--------------------------------------------------------------------------------------------
09-946      Minerec Mining Chemical             09/01/98        03/31/99          150,000.00
--------------------------------------------------------------------------------------------
09-947      Grey Eagle Mine                     09/09/98        09/30/98        1,781,655.00
============================================================================================
</TABLE>

<PAGE>   67
                               JOB STATUS SUMMARY

                                   ERRS WEST

                            CONTRACT NO. 68-W7-0016

                           08/01/99 THROUGH 08/31/99

<TABLE>

<S>                                     <C>            <C>            <C>
===================================================================================
09-948 McFarland, CA                    09/17/98       09/30/99          35,000.00
-----------------------------------------------------------------------------------
09-949 Barona Res. Meth Drums           11/18/98       03/31/99          10,000.00
-----------------------------------------------------------------------------------
09-950 Wilder Ranch                     11/30/98       03/31/98         250,000.00
-----------------------------------------------------------------------------------
09-951 Francis Plating Site             12/16/98       09/30/99       1,000,000.00
-----------------------------------------------------------------------------------
09-952 CRIT Parker Pesticide Site       02/20/99       09/30/99         168,500.00
-----------------------------------------------------------------------------------
09-953 38th Street Rad Site             03/04/99       09/30/99          50,000.00
-----------------------------------------------------------------------------------
09-954 Hollywood Blvd, near I-5         03/10/99       06/30/99          50,000.00
-----------------------------------------------------------------------------------
09-955 Hofer Property                   05/04/99       01/08/00         680,000.00
-----------------------------------------------------------------------------------
09-956 Pala Indian Reservation          04/29/99       06/30/99           5,000.00
-----------------------------------------------------------------------------------
09-957 Gila River Indian Reservation    05/27/99       01/08/00         200,000.00
-----------------------------------------------------------------------------------
09-958 SW Photochemical                 06/18/99       01/08/00         600,000.00
-----------------------------------------------------------------------------------
09-959 Buena Vista / Klau Mine          07/09/99       12/15/99       1,149,978.00
-----------------------------------------------------------------------------------
09-960 Mongmong, Guam                   07/21/99       12/15/99         200,000.00
===================================================================================
</TABLE>
<PAGE>   68

                                                                   SCHEDULE 1.C.
                                                          EPA CONTRACT EQUIPMENT

SEE ATTACHED SCHEDULE AND INCLUDING SELLERS OFFICE FURNITURE AND MISCELLANEOUS
EQUIPMENT AND SUPPLIES LOCATED IN THE EDMUNDS, WA LEASED FACILITY.

                                       23
<PAGE>   69
<TABLE>
<CAPTION>

 ID            SERIAL                        MAKE & MODEL                          AP VENDOR              FAACCT   BOOK_BASIS
----      -----------------        ---------------------------------       ------------------------      --------  -----------
<S>       <C>                      <C>                                     <C>                           <C>
S100      1FTJX35G4RKB31487        94 F350 1 TON EXT CAB                   COURTESY                      0172-002  $ 13,385.85
S101      1FTJX35GTEB64213         96 F350 1 TON EXT CAB                   ASSOCIATES LEASING            0172-002  $ 20,732.00
S102      2FDKF3852LCA91856        90 F350 1 TON FLATBED                   BILLPIE FORD                  0171-002  $ 24,961.97
S103      [ILLEGIBLE]              95 CHEVY                                ASSOCIATES LEASING            0172-002  $ 22,743.53
S104      [ILLEGIBLE]              92 F250 1 TON BOX TRUCK                 ENTERPRISE                    0172-002  $ 21,580.68
S105      1FTJW35SF9SEA71446       95 F350 1 TON CREW CAB                  ASSOCIATES LEASING            0172-002  $ 25,780.00
S106      [ILLEGIBLE]              KOMATSU 5000LB INDUSTRIAL FORKLIFT      HERTZ                         0171-002  $ 13,000.03
S107      [ILLEGIBLE]              98 YAMAHA 386CC 4X4 ATV                 CANTON FARM EQUIPMENT         0171-002  $  5,295.00
S108      3B7KC23C7SM172833        95 BR2500 RAM                           ASSOCIATES LEASING            0172-002  $ 27,315.00
S200      [ILLEGIBLE]              28' 1985 FREUHAUF VAN                   FRUEHAUF                      0170-002  $[ILLEGIBLE]
S202      16VAX1213N1A21011        92 BIG TEX UTILITY TRAILER              HARRIS TRAILER SALES          0170-002  $    777.56
S205      FRTO11702                32' SEMI TRAILER                        FRUEHAUF                      0170-002  $  3,843.00
S207      FRTO11708                32' SEMI TRAILER                        FRUEHAUF                      0170-002  $  3,843.00
S208      107101E                  74 GINDY DRY VAN                        FRUEHAUF                      0170-002  $  6,774.12
S209                               HAZDECON MODEL #R-MDF4LP                HAZDECON                      0170-002  $ 26,930.00
S210      983110                   8'X20' DECON TRAILER                    HAZCO/CENTRAL INDUSTRIES      0170-002  $  2,164.00
S300      GC02-2471827             2' TRASH PUMP                           HONDA                         0170-002  $  1,136.10
S301      234-76104-01             3' TRASH PUMP                           MULTIQUIP                     0170-002  $  1,555.13
S302      WAF1009366               3' TRASH PUMP                           HONDA                         0170-002  $  1,295.00
S304      [ILLEGIBLE]              2' SUBMERSIBLE PUMP                     TEEL SYSTEMS                  0170-002  $  1,487.58
S307      08-9527                  PUMP ME/PAPB/TF/FTF/PTS                 WAGNER PROCESS/WILDEN         0170-002  $  2,587.69
S308                               PUMP WIMB/TO/TF/TF/AT                   ARGO/WILDEN                   0170-002  $    985.00
S309                               PUMP WIM1STOTFTFAT                      ARGO/WILDEN                   0170-002  $  1,543.00
S310                               PUMP WIMB/ST/FT/TF/ST                   ARGO/WILDEN                   0170-002  $  2,090.00
S311                               PUMP WIMB/ST/FT/TF/ST                   ARGO/WILDEN                   0170-002  $  2,093.00
S313                               PUMP M8-WIM                             ARGO/WILDEN                   0170-002  $  1,170.00
S314                               PUMP M8-WIM                             ARGO/WILDEN                   0170-002  $    985.00
S317      15-5003                  MIS-00-BN-BN-BN                         PHOENIX PUMPS/WILDEN          0170-002  $  1,232,62
S318      [ILLEGIBLE]              MASTERFLEX 12VDC                        COLE-PARMER/REDI-FLO          0170-002  $  2,369.38
S319                               110 VOLT FUEL PUMP                      REBEL OIL                     0170-002  $    466.94
S321                               PUMP PCISP2GVPNC                        ARGO                          0170-002  $    946.25
S323                               3'DD ALUMINUM PUMP                      HERTZ/WILDEN                  0170-002  $  1,357.38
S324      CA9105 CA9115            TELESCOPIC SHOWER                       SAFETY ENVIRONMENTAL          0170-002  $    899.71
S329                               LUTZ PUMP                               RYAN HERCO                    0170-002  $  1,325.87
S400      1119596                  93 HONDA GENERATOR [ILLEGIBLE]          HILLSBORO HONDA               0170-002  $  2,150.00
S500A                              HIP AIR PACK                            CASCADE/MSA                   0170-002  $  1,748.89
S500B                              HIP AIR PACK                            CASCADE/MSA                   0170-002  $  1,748.89
S500C                              HIP AIR PACK                            CASCADE/MSA                   0170-002  $  1,748.89
S500D                              HIP AIR PACK                            CASCADE/MSA                   0170-002  $  1,748.89
S502A                              HIP AIR PACK                            HAZCO/MSA                     0170-002  $  1,582.73
S502B                              HIP AIR PACK                            HAZCO/MSA                     0170-002  $  1,582.73
S502C                              HIP AIR PACK                            HAZCO/MSA                     0170-002  $  1,582.73
S503A                              HIP AIR PACK                            HAZCO/CASCADE                 0170-002  $  1,359.04
S503B                              HIP AIR PACK                            HAZCO/CASCADE                 0170-002  $  1,359.04
S503C                              HIP AIR PACK                            HAZCO/CASCADE                 0170-002  $  1,359.04
S503D                              HIP AIR PACK                            HAZCO/CASCADE                 0170-002  $  1,359.04
S504A                              HIP AIR PACK                            CASCADE/MSA                   0170-002  $  1,487.58
S504B                              HIP AIR PACK                            CASCADE/MSA                   0170-002  $  1,487.58
S504C                              HIP AIR PACK                            CASCADE/MSA                   0170-002  $  1,487.58
S505A                              HIP AIR PACK                            CASCADE/MSA                   0170-002  $  1,437.50
</TABLE>

<TABLE>
<CAPTION>

 ID                SEP-99                DEP EXP-99             ACCUM 99          NBV
----            -----------             -----------           -----------     -----------
<S>             <C>                     <C>                   <C>             <C>
S100                 (17.19)                 897.51             13,368.61           17.19
S101                 345.53                3,109.00             14,627.58        6,104.42
S102                   0.00                    0.00             24,961.97            0.00
S103                 379.05                3,411.53             20,456.54        2,288.99
S104                 359.88                3,237.10             20,693.47     [ILLEGIBLE]
S105                 429.57             [ILLEGIBLE]           [ILLEGIBLE]        4,640.91
S106                 216.67                1,950.00              4,554.45        8,435.58
S107                  58.25                  794.25           [ILLEGIBLE]        3,674.14
S108                 455.25                4,097.25             24,052.38        3,282.63
S200                 104.45                  940.02              3,874.96        2,391.82
S202                  28.87                   15.98                777.58            0.00
S205                 (14.94)                  79.00              3,843.01            0.00
S207                 (14.94)                  79.00              3,843.01            0.00
S208                 112.90                1,016.12               4,22.53        2,551,59
S209                 345.00                3,105.00             16,215.00       12,765.00
S210                   0.00                    0.00           [ILLEGIBLE]           (0.00
S300                  13.53                  121.73                885.60          270.50
S301                   0.00                   82.69              1,565.13           (0.00
S302                   0.00                   23.74              1,295,00           (0.00
S304                   0.00                    0.00              1,487.58            0.00
S307                  30.57                  275.11                911.94        1,555.75
S308                   0.00                    0.00                917.47           67.53
S309                   0.00                    0.00              1,543.00           (0.00
S310                   0.00                    0.00              2,090.00           (0.00
S311                   0.00                    0.00              2,093.00            0.00
S313                  13.93                  125.36                998.21          171.79
S314                   0.00                    0.00                985.00            0.00
S317                  14.67                  132.07                555.17          577.45
S318                  28.21                  253.66              2,309.21           80.17
S319                   5.80                   52.17                373.90          113.04
S321                  11.25                  101.38                836.61          109.64
S323                  16.16                  145.43                324.28        1,033.12
S324                  10.71                   96.40                770.82          128.89
S329                  22.10                  154.68                154.68        1,171.19
S400                  25.60                  230.36              1,611.51          508.49
S500A                 20.82                  187.38                796.72          952.17
S500B                 20.82                  187.38                796.72          952.17
S500C                 20.82                  187.38                796.72          952.17
S500D                 20.82                  187.38                796.72          952.17
S502A                 18.84                  169.58              1,069.60          513.13
S502B                 18.84                  169.58              1,069.60          513.13
S502C                 18.84                  169.58              1,069.60          513.13
S503A                 16.18                  145.61                837.54          521.50
S503B                 16.18                  145.61                837.54          521.50
S503C                 16.18                  145.61                837.54          521.50
S503D                 16.18                  145.61                837.54          521.50
S504A                  0.00                    0.00              1,487.58            0.00
S504B                  0.00                    0.00              1,487.58            0.00
S504C                  0.00                    0.00              1,487.58            0.00
S505A                 19.49                  175.45              1,595.91           41.59
</TABLE>

                                  Page 1 of 6
<PAGE>   70
<TABLE>
<CAPTION>
  ID               SERIAL                          MAKE & MODEL                        AP VENDOR              FAACCT
  --               ------                          ------------                        ---------              ------
<S>         <C>                         <C>                                     <C>                          <C>
S505B                                   HIP AIR PACK                            CASCADE/MSA                  0170-002
S505C                                   HIP AIR PACK                            CASCADE/MSA                  0170-002
S505D                                   HIP AIR PACK                            CASCADE/MSA                  0170-002
S506                                    HIP AIR PACK                            MSA/SCBA                     0170-002
S507                                    HIP AIR PACK                            MSA/SCBA                     0170-002
S701                                    VAC-U-MAX 55 GAL OPEN TOP               VACU-MAX                     0170-002
S702                                    VAC-U-MAX CLN/U55                       VACU-MAX                     0170-002
S703                                    VAC-U-MAX CLN/U55                       VACU-MAX                     0170-002
S704                                    ASBESTOS VAC                            HACO                         0170-002
S705                                    ASBESTOS VAC                            HACO                         0170-002
S706        CA102ASB-12P                PULLMAN HOLT 12 GAL VACUUM              SAFETY ENVIRONMENTAL         0170-002
S707        CA102ASB-12P                PULLMAN HOLT 12 GAL VACUUM              SAFETY ENVIRONMENTAL         0170-002
S708        CA102ASB-12P                PULLMAN HOLT 12 GAL VACUUM              SAFETY ENVIRONMENTAL         0170-002
S709        CA102ASB-12P                PULLMAN HOLT 12 GAL VACUUM              SAFETY ENVIRONMENTAL         0170-002
S710                                    NILFISK WET/DRY MERCURY VAC             HAZCO                        0170-002
S711                                    NILFISK WET/DRY MERCURY VAC             HAZCO                        0170-002
S712                                    FA200DE NEGATIVE AIR                    SAFETY ENVIRONMENTAL         0170-002
S713                                    FA200DE NEGATIVE AIR                    SAFETY ENVIRONMENTAL         0170-002
S714                                    FA200DE NEGATIVE AIR                    SAFETY ENVIRONMENTAL         0170-002
S715                                    FA200DE NEGATIVE AIR                    SAFETY ENVIRONMENTAL         0170-002
S716                                    FA200DE NEGATIVE AIR                    SAFETY ENVIRONMENTAL         0170-002
S717                                    FA200DE NEGATIVE AIR                    SAFETY ENVIRONMENTAL         0170-002
S722                                    AIRSTRIPPER, SHALLOW TRAY               AIR STRIP                    0170-002
S724                                    CONCRETE VIBRATOR W/MOTOR               LONE STAR NORTHWEST          0170-002
S725                                    FIRE SAFETY CABINET                     C&H DISTRIBUTORS             0170-002
S726                                    FIRE SAFETY CABINET                     C&H DISTRIBUTORS             0170-002
S734                                    1/2" PNEUMATIC DRILL                    GRAINGER                     0170-002
S738        B190                        PNEUMATIC DRUM DEHEADER GA W/3517       WIZARD DRUM TOOL             0170-002
S739        TC16116                     BROOKS ($443,811)                       TARMAC                       0170-002
S740        PD390-3953                  3000 PSI GENERATOR PRESSURE WASHER      LANDA                        0170-002
S741        10074                       SUPER PROLINE DRUM CRUSHER 10-20/70     DRUMBEATERS OF AMERICA       0170-002
S749                                    PH 3000 HYDRALIC SHEAR                  CODE 3 RES Q                 0170-002
S752        DE4800/FR1210               105 GAL TANK W/FUEL PUMP                ACE TANK & EQUIP             0170-002
S756                                    HAZCAT KIT W/SENS. PUMP & TUBES         HAZTECH SYSTEMS              0170-002
S758        26083                       BURIED PIPE & CABLE DETECTOR            MCMASTER CARR SUPPLY         0170-002
S759        933113                      LASER PRO SHOT L1AS                     OPTICO FIELD EQUIPMENT & S   0170-002
S761        K01B1                       EXPLOSIMETER MODEL #1314SMPN            GASTECH                      0170-002
S763        580A-2521B-219              PHOTOIONIZATION DETECTOR MODEL #58      ENVIRONMENTAL INSTRUMEN      0170-002
S764        590A-24612-217              PHOTOIONIZATION DETECTOR MODEL #58      ENVIRONMENTAL INSTRUMEN      0170-002
S765        15326                       100 FT WATER LEVEL INDICATOR            SINCO/SLOPE INDICATOR COM    0170-002
S770                                    MARK 4 DUST FOGGER SYSTEM               TORGERSON MACHINERY          0170-002
S771                                    SPACE RECOVERY UNIT                     ARAMSCO                      0170-002
S773        063415                      AUTO LEVEL W/TRIPOD                     CONTRACTORS WAREHOUSE        0170-002
S774        B0210                       PCB SOIL TEST ANALYZER                  ENSYS                        0170-002
S777                                    3.5 HP GAS BLOWER W/VINYL HOSE DUCT     HAZCO                        0170-002
S778                                    3.5 HP GAS BLOWER W/VINYL HOSE DUCT     HAZCO                        0170-002
S779                                    3.5 HP GAS BLOWER W/VINYL HOSE DUCT     HAZCO                        0170-002
S780                                    3.5 HP GAS BLOWER W/VINYL HOSE DUCT     HAZCO                        0170-002
S781                                    3.5 HP GAS BLOWER W/VINYL HOSE DUCT     HAZCO                        0170-002
S782                                    3.5 HP GAS BLOWER W/VINYL HOSE DUCT     HAZCO                        0170-002
</TABLE>

<TABLE>
<CAPTION>
  ID            BOOK_BASIS           SEP-99             DEP EXP-99          ACCUM-99              NBV
  --            ----------           ------             ----------          --------              ---
<S>             <C>                 <C>                <C>                  <C>                <C>
S505B           $  1,637.50            19.49              175.45             1,593.31               44.18
S505C           $  1,637.50            19.49              175.45             1,593.31               44.19
S505D           $  1,637.50            19.49              175.45             1,593.31               44.19
S506            $  2,694.50             0.00              192.48             2,694.75                0.00
S507            $  2,694.50             0.00                0.00             2,694.75                0.00
S701            $  1,345.85            18.02              144.20               254.22            1,091.63
S702            $    954.55             0.00                0.00               954.56               (0.00)
S703            $    954.55             0.00                0.00               954.56               (0.00)
S704            $  1,300.00            15.48              139.29               513.29              785.71
S705            $  1,300.00            15.48              139.29               513.29              785.71
S706            $    624.06             7.43               66.87               522.79              101.29
S707            $    624.06             7.43               66.87               534.68               89.40
S708            $    624.06             7.43               66.87               534.68               89.40
S709            $    624.06             7.43               66.87               534.68               89.40
S710            $  4,072.38            48.48              436.33             1,016.48            3,055.90
S711            $  4,072.38            48.48              436.33             1,165.77            2,905.61
S712            $    808.13             9.62               86.59               692.36              115.77
S713            $    808.13             9.62               86.59               692.36              115.77
S714            $    808.13             9.62               86.59               692.36              115.77
S715            $    808.13             9.62               86.59               692.36              115.77
S716            $    808.13             9.62               86.59               692.36              115.77
S717            $    808.13             9.62               86.59               692.36              115.77
S722            $ 13,096.00           155.93            1,403.36             5,145.64            7,952.36
S724            $    948.00            11.29              101.57               714.39              233.61
S725            $    794.68             9.48               85.14               530.73              263.95
S726            $    795.00             9.46               85.18               659.86              135.34
S734            $    651.72             7.76               69.83               606.01               43.71
S738            $  3,005.60             0.00              146.70             3,005.60               (0.00)
S739            $443,611.00         5,283.46           47,551.18            65,239.69          358,571.11
S740            $ 10,641.03             0.00                0.00            10,641.03               (0.00)
S741            $ 45,774.30           544.93            4,904.38            25,339.34           20,434.96
S749            $  6,330.43            75.36              576.26             3,197.87            3,132.58
S752            $    689.55             8.21               73.66               307.29              382.26
S756            $  3,007.30            35.80              322.21             1,661.18            1,345.12
S758            $    674.04             8.02               72.22               430.37              243.67
S759            $  3,315.60            39.47              355.24             1,518.33            1,797.27
S761            $  2,324.15             0.00                0.00             2,324.15                0.00
S763            $  4,885.00            56.15              523.39             1,093.31            3,791.68
S764            $  4,925.00            58.63              527.68             1,102.28            3,822.74
S765            $    680.00             8.10               72.66               152.19              527.81
S770            $  2,291.36            27.28              245.51             1,382.10              909.28
S771            $  2,675.88            31.86              286.70             2,056.62              619.06
S773            $    864.86             0.00               51.48               664.68                0.00
S774            $  1,261.50            15.26              137.30             1,000.79              280.71
S777            $  1,118.89            13.32              119.88               388.06              730.83
S778            $  1,118.89            13.32              119.88               388.06              730.83
S779            $  1,118.89            13.32              119.88               388.06              730.83
S780            $  1,118.89            13.32              119.88               388.06              730.83
S781            $  1,118.89            13.32              119.88               388.06              730.83
S782            $  1,118.89            13.32              119.88               388.06              730.83
</TABLE>

                                  PAGE 2 OF 6
<PAGE>   71

<TABLE>
<CAPTION>
  ID               SERIAL                          MAKE & MODEL                        AP VENDOR              FAACCT
  --               ------                          ------------                        ---------              ------
<S>         <C>                         <C>                                     <C>                          <C>
S783                                    3.5 HP GAS BLOWER W/VINYL HOSE DUCT     HAZCO                        0170-002
S784                                    DATA LOGGER TRANSDUCER                                               0170-002
S785                                    VAPOR EXT/GROUND WATER UNIT                                          0170-002
S786                                    WATER TREATMENT VESSELS                 CAMERON-YAKIMA               0170-002
S787                                    WATER TREATMENT VESSELS                 CAMERON-YAKIMA               0170-002
S788                                    WATER TREATMENT VESSELS                 CAMERON-YAKIMA               0170-002
S789                                    WAREHOUSE SECURITY GATE                 ECONOMY FENCE CENTER         0170-002
S790                                    BASIC SOIL AUGER KIT                    NORTHWEST PUMP & EQUIPM      0170-002
S791        000945                      CONNEX BOX                              INSTANT SPACE                0170-002
S792                                    1000LB VAPOR PHASE CARBON VESSELS       SUN-AG                       0170-002
S794        202-2226                    THERMO ANEMOMETER                       GRAINGER                     0170-002
S795        59261                       1000LB PORTABLE BALANCE SCALE           CASCO                        0170-002
S796        DCR-205-15                  DRUM TIPPER 55 GAL/ 180 DEGREE          CLARKLIFT OF SAN DIEGO       0170-002
S797                                    GREASE BARREL CHASSIS PUMP              SPOKANE PUMP/LINCOLN         0170-002
S798        202-2226                    THERMO ANEMOMETER                       GRAINGER                     0170-002
S799                                    DESORBER UNIT REBUILD                   TARMAC                       0170-002
S800        X7329576-1                  445 CDX COMPUTER                        TOSHIBA/COMPUTER CITY        0176-002
S801        X7328877-1                  445 CDX COMPUTER                        TOSHIBA/COMPUTER CITY        0176-002
S802        X7328876-1                  445 CDX COMPUTER                        TOSHIBA/COMPUTER CITY        0176-002
S803        X7311417                    445 CDX COMPUTER                        TOSHIBA/COMPUTER CITY        0176-002
S806        87142380                    445 CDX COMPUTER                        TOSHIBA/COMPUTER CITY        0176-002
S807        87141412                    445 CDX COMPUTER                        TOSHIBA/COMPUTER CITY        0176-002
S808        97278138                    445 CDX COMPUTER                        TOSHIBA/COMPUTER CITY        0176-002
S809        18504350                    305 CDS COMPUTER                        TOSHIBA/COMPUTER CITY        0176-002
S810        67041818                    225 CDS COMPUTER                        TOSHIBA/COMPUTER CITY        0176-002
S811        67041551                    225 CDS COMPUTER                        TOSHIBA/COMPUTER CITY        0176-002
S812        11651633                    205 CDS COMPUTER                        TOSHIBA/COMPUTER CITY        0176-002
S813        10628342                    205 CDS COMPUTER                        TOSHIBA/COMPUTER CITY        0176-002
S814        12895459                    205 CDS COMPUTER                        TOSHIBA/COMPUTER CITY        0176-002
S818        12895318                    205 CDS COMPUTER                        TOSHIBA/COMPUTER CITY        0176-002
S819        83443183                    P100 DESK TOP COMPUTER                  INTEL/COMPUSAVE              0176-002
S820        83442978                    P100 DESK TOP COMPUTER                  INTEL/COMPUSAVE              0176-002
S821        83443180                    P100 DESK TOP COMPUTER                  INTEL/COMPUSAVE              0176-002
S822        6694685                     105 CS COMPUTER                         TOSHIBA/COMPUTER CITY        0176-002
S824        6694770                     105 CS COMPUTER                         TOSHIBA/COMPUTER CITY        0176-002
S825        12688656                    205 CDS COMPUTER                        TOSHIBA/COMPUTER CITY        0176-002
S826                                    200 MMX NOTEBOOK                        TOSHIBA/COMPUTER CITY        0176-002
S827                                    INTER-TEL AXXESS PHONE SYSTEM           TERRA COMMUNICATIONS         0176-002
S828        77085756                    225 CDS COMPUTER                        TOSHIBA/COMPUTER CITY        0176-002
S829        95120264                    TOSHIBA FAX MACHINE                     KELLY BUSINESS MACHINES      0176-002
S830                                    IBM-THINKPAD                            PACIFIC BUSINESS SYSTEMS     0176-002
S831                                    IBM-THINKPAD                            PACIFIC BUSINESS SYSTEMS     0176-002
S832                                    IBM-THINKPAD                            PACIFIC BUSINESS SYSTEMS     0176-002
S833                                    IBM-THINKPAD                            PACIFIC BUSINESS SYSTEMS     0176-002
S834                                    IBM-THINKPAD                            PACIFIC BUSINESS SYSTEMS     0176-002
S836        USKB123324                  HEWLETT 4SI PRINTER                     HEWLETT PACKARD              0176-002
S837        USHC038184                  HEWLETT 4SI PRINTER                     HEWLETT PACKARD              0176-002
S838        JPT001439                   HP LASER 5SI                            HEWLETT PACKARD              0176-002
S839        JP6K048433                  HP LASER 5SI                            HEWLETT PACKARD              0176-002
S841        601908                      P-133 COMPUTER                          COMPUTER CITY                0176-002

<CAPTION>
  ID            BOOK_BASIS           SEP-99             DEP EXP-99          ACCUM-99              NBV
  --            ----------           ------             ----------          --------              ---
<S>             <C>                 <C>                <C>                  <C>                <C>
S783            $   1,118.89           13.32                19.88                388.06            730.83
S784            $   3,023.65           36.00               323.96              2,813.67            209.98
S785            $  48,210.30          585.84               572.53             41,857.61          7,342.49
S786            $   2,841.66           33.83               304.46              2,238.12            805.54
S787            $   2,841.66           33.83               304.46              2,238.12            805.54
S788            $   2,841.66           33.83               304.46              2,238.12            805.54
S789            $   1,081.35           12.87               115.88                821.72            159.83
S790            $     779.00            9.27                83.46                884.00            115.00
S791            $   2,950.00           18.73               283.29              2,850.00              0.00
S792            $   8,120.00           98.87               870.00              7,250.00            870.00
S794            $     592.50            6.70                60.27                107.81            454.68
S795            $     575.00            2.26                52.48                575.00              0.00
S796            $     883.44           10.28                92.51                792.17             71.27
S797            $     759.46            9.04                81.37                850.65            108.80
S798            $     582.50            6.70                90.27                107.81            454.89
S799            $ 334,952.00        3,987.64            35,868.79              35,88.79        299,073.21
S800            $   2,563.31           42.72               364.50                900.01          1,663.30
S801            $   2,563.31           42.72               364.50                900.01          1,663.30
S802            $   2,563.31           42.72               364.50                900.01          1,663.30
S803            $   2,434.90           40.58               365.24                848.90          1,588.10
S806            $   2,610.00           43.50               391.50              1,025.16          1,584.85
S807            $   2,610.02           43.50               391.50              1,025.16          1,584.85
S808            $   2,455.62           40.93               368.34                839.98          1,515.88
S809            $   1,988.28           32.80               295.24                825.48          1,342.80
S810            $   2,980.47           43.17               388.57              1,070.73          1,519.74
S811            $   2,782.42           48.37               417.36              1,255.18          1,527.24
S812            $   2,824.73           43.75               393.71                971.15          1,853,58
S813            $   2,227.09           37.12               564.08              1,374.61            852.48
S814            $   1,878.71           31.31               281.81                994.67            884.04
S818            $   2,034.88           33.91               305.23              1,048.48            958.38
S819            $     856.85           14.28               128.53                255.83            601.23
S820            $     856.85           14.28               128.53                255.83            601.23
S821            $     856.85           14.28               128.53                255.83            601.22
S822            $   2,126.55           35.44               318.98              1,349.18            777.37
S824            $   3,143.42           52.39               471.51              2,107.84          1,035.58
S825            $   2,217.89           38.96               332.68              1,175.48          1,042.41
S826            $   1,976.96           32.95               296.54                571.12          1,405.64
S827            $  32,736.89          389.71             3,507.42              8,808.05         24,655.84
S828            $   2,889.62           48.33               434.94              1,254.89          1,644.73
S829            $   2,850.00           44.17               397.50              1,938.92            711.08
S830            $   2,604.00           43.40               390.60                585.85          2,038,35
S831            $   2,604.23           43.40               390.63                585.70          2,038.53
S832            $   1,372.70           22.88               205.91                298.18          1,074.52
S833            $   1,372.00           22.87               205.80                298.03          1,073.97
S834            $   1,372.00           22.87               205.80                298.03          1,073.97
S836            $   1,406.52            0.00                 0.00              1,406.52             (0.00)
S837            $   1,433.83           23.88               215.01                959.74            474.89
S838            $   1,498.67            0.00                 0.00              4,496.67             (0.00)
S839            $   1,447.84           24.13               217.18              1,321.56            126.28
S841            $   1,778.81           29.65               266.82                935.85            842.98
</TABLE>

                                   PAGE 3 OF 6

<PAGE>   72
<TABLE>
<CAPTION>

  ID         SERIAL               MAKE & MODEL                  AP VENDOR             FAACCT
------   ----------------     -------------------      -----------------------  ------------------
<S>      <C>                  <C>                      <C>                      <C>
S842      500268              P-90  COMPUTER                 COMPUTER CITY            0176-002
S843      601907              P-133 COMPUTER                 COMPUTER CITY            0176-002
S844      M949502099          P-133 COMPUTER                 COMPUTER CITY            0176-002
S845      509131              P-100 COMPUTER                 COMPUTER CITY            0176-002
S646                          P-133 COMPUTER                 COMPUTER CITY            0176-002
S647      M49502096           P-133 COMPUTER                 COMPUTER CITY            0176-002
S648      500267              P-90  COMPUTER                 COMPUTER CITY            0176-002
S849                          P-133 COMPUTER                 COMPUTER CITY            0176-002
S850      601909              P-133 COMPUTER                 COMPUTER CITY            0176-002
S851      601909              P-133 COMPUTER                 COMPUTER CITY            0176-002
S852      62026088            ALDER S10 TYPEWRITER           FIRSTLINE OFFICE         0175-002
S855                          P-90 PCL ELSA FILE SERVER      COMPUTER REPAIR, INC     0176-002
S858                          CET COMPANY SIGN               JIM MANNING & ASSOC.     0175-002
S862                          MAGNA SHELL DESK PANEL         CRAWFORD                 0175-002
S863                          42" HDN LATERAL FILE CABINET   CRAWFORD                 0175-002
S864                          42" HDN LATERAL FILE CABINET   CRAWFORD                 0175-002
S865                          1700CU OFFICE SAFE             SOURCE 100               0175-002
S866                          AUDIO VISUAL BOARD3076         CRAWFORD                 0175-002
S867      Y8215376A           NOTEBOOK COMPUTER              TOSHIBA                  0176-002
S868      Y8214843A           NOTEBOOK COMPUTER              TOSHIBA                  0176-002
S869      Y8202213A           NOTEBOOK COMPUTER              TOSHIBA                  0176-002
S892      500256              P-90 COMPUTER                  COMPUTER                 0176-002
S902      174DVJ2978          GP300 RADIO                    MOTOROLA                 0170-002
S907      174FVJ6950          GP300 RADIO                    MOTOROLA                 0170-002
S909      174FVJ5926          GP300 RADIO                    MOTOROLA                 0170-002
S910      174FVJ6928          GP300 RADIO                    MOTOROLA                 0170-002
S911      174FVJ3215          GP300 RADIO                    MOTOROLA                 0170-002
S914      174FWN1115          GP300 RADIO                    MOTOROLA                 0170-002
S915      174FWND942          GP300 RADIO                    MOTOROLA                 0170-002
S916      174FWLD223          GP300 RADIO                    MOTOROLA                 0170-002
S918      174FWDL211          GP300 RADIO                    MOTOROLA                 0170-002
S919      174FWN1146          GP300 RADIO                    MOTOROLA                 0170-002
S921      174FWN1152          GP300 RADIO                    MOTOROLA                 0170-002
S922      174FWN1145          GP300 RADIO                    MOTOROLA                 0170-002
S935      174FLWD204          GP300 RADIO                    MOTOROLA                 0170-002
S936      174FWN1118          GP300 RADIO                    MOTOROLA                 0170-002
S937      174FWN1144          GP300 RADIO                    MOTOROLA                 0170-002
P100      1FTDF1727VKB15641   97 F150                        FORD                     0172-002
P102      1FTJW36F3VEAS1658   97 F350                        FORD                     0172-002
P105      2FDLFH47MOMCADS     91 F450 FLAT BED               FORD                     0171-002
P111      WC619386            28'x8' RESPONSE TRAILER        WELLS CARGO              0170-002
P200                          15HP OUTBOARD MOTOR            JOHNSON                  0170-002
P201                          15HP OUTBOARD MOTOR            EVINRUDE                 0170-002
P202      SYL492206896        SKIFF & TRAILER                STEVENS MARINE/SYLVAN    0170-002
P203      SMK820288191        SKIFF & TRAILER                SMOKER CRAFT             0170-002
P300                          M-4  PUMP                      WILDEN                   0170-002
P301                          M-15 PUMP                      WILDEN                   0170-002
P302                          M-15 PUMP                      WILDEN                   0170-002
P303                          M-15 PUMP                      WILDEN                   0170-002
P304                          M-15 PUMP                      WILDEN                   0170-002

<CAPTION>
<S>       <C>                 <C>            <C>                 <C>                  <C>
 ID         BOOK BASIS          SEP-99           DEP EXP-99           ACCUM-99            NBV
------   ----------------    -------------   -----------------   ----------------     ----------
S842         4,028.30              67.14              604.25           3,403.91           624.39
S843         1,778.81              29.65              266.82             935.85           842.96
S864         1,991.96              33.20              298.79           1,660.27           131.69
S865         2,207.22              36.79              331.08           1,530.34           676.88
S646         1,372.71              22.68              205.91             624.58           748.13
S647         1,947.65              32.46              292.15           1,818.89           128.76
S648         2,948.14              49.14              442.22           2,491.16           456.95
S849         1,372.70              22.88              205.91             824.58           748.12
S850         1,566.74              26.11              235.01             824.28           742.46
S851         1,566.74              26.11              235.01             824.28           742.48
S852           700.70               0.00                0.00             700.70            (0.00)
S855        20,060.98             343.35            3,009.14          18,951.51         3,109.45
S858         3,080.65              36.68              330.09           2,013.56         1,067.29
S862           503.13               5.88               53.91             309.27           193.88
S863           615.95               7.33               65.93             380.57           235.35
S864           635.78               7.57               68.12             102.43           533.35
S865           773.63               9.21               82.89             597.11           178.52
S866           938.88              10.82               97.38             558.87           350.21
S867         1,303.17              21.72              173.78             173.76         1,129.41
S868         1,303.17              21.72              173.78             173.75         1,129.41
S869         1,303.18              21.72              173.76             173.75         1,129.41
S892         4,028.30              67.14              604.25           3,403.91           624.39
S902         1,074.58              12.79              115.13             650.72           423.86
S907           939.33              11.18              100.64             558.82           370.51
S909           939.33              11.16              100.64             161.77           777.56
S910           939.33              11.18              100.64             568.82           370.51
S911           939.33              11.18              100.64             568.82           370.51
S914         1,064.05              12.67              114.01             497.40           568.65
S915         1,064.05              12.67              114.01             497.40           568.65
S916         1,064.05              12.67              114.01             497.40           568.65
S918           888.60              10.55               94.99             414.45           472.15
S919           888.60              10.55               94.99             414.45           472.15
S921           888.60              10.55               94.99             414.45           472.15
S922           888.60              10.55               94.99             414.45           472.15
S935         1,064.05              12.67              114.01             497.40           568.65
S936           888.60              10.55               94.99             414.45           472.15
S937         1,064.05              12.67              114.01             497.40           568.65
P100        16,511.56             275.19            2,476.73           7,430.20         9,081.36
P102        27,599.40             459.99            4,139.91          17,510.29        10,089.11
P105        22,000.00             966.67            3,300.00          21,095.58           904.44
P111        10,526.00             175.43            1,578.90           6,549.51         3,978.49
P200         1,800.00              15.00              135.00             589.50         1,210.50
P201         1,799.00              14.99              134.83             546.20         1,250.80
P202         2,059.00              34.32              308.85           1,254.85           804.15
P203         2,500.00              41.67              375.00           1,209,72         1,290.26
P300           800.00               7.14               64.29             526.90            73.10
P301         1,500.00              17.86              160.71           1,027.38           472.62
P302         1,500.00              17.86              160.71           1,027.38           472.62
P303         1,500.00              17.86              160.71           1,027.38           472.62
P304         1,500.00              17.86              160.71           1,027.38           472.62
</TABLE>

                                  Page 4 of 6
<PAGE>   73
<TABLE>
<CAPTION>
ID           SERIAL          MAKE & MODEL                      AP VENDOR              FAACCT     BOOK_BASIS     SEP-99    DEP EXP-99
----      ------------    ----------------------------------   ---------------------  --------   -----------    ------   -----------

<S>       <C>             <C>                                  <C>                    <C>        <C>            <C>      <C>
P305                      M-4 PUMP                             WILDEN                 0170-002   $    600.00      7.14      64.28
P306      9201            FLOTO PUMP                           WATERIOUS              0170-002   $  1,500.00     17.95     150.71
P307      169322          VAC-U-MAX CLOSED TOP                 VACUMAX                0170-002   $    900.00     10.71      96.43
P400      1457476         2.2 KW-GENERATOR                     DAYTON                 0170-002   $    500.00      5.95      53.57
P403      EA7-1134068     EM50005 GENERATOR                    HONDA                  0170-002   $  2,399.00     28.58     257.04
P404      12018           AIR COMPRESSOR                       SULLIVAN               0170-002   $ 15,000.00    178.57   1,607.14
P500      ALT285194358    IASA SCBA                            ULTRALITE              0170-002   $  1,900.00     22.52     203.57
P501      ALT285155242    MSA SCBA                             ULTRALITE              0170-002   $  1,900.00     22.62     203.57
P502      ALT295194296    MSA SCBA                             ULTRALITE              0170-002   $  1,900.00     22.62     203.57
P508                      HIP AIR PACK                         MSA                    0170-002   $  1,000.00     11.90     107.14
P509                      HIP AIR PACK                         MSA                    0170-002   $  1,000.00     11.90     107.14
P510      ALT285224729    MSA SCBA                             ULTRALITE              0170-002   $  1,900.00     22.62     203.57
P511      TP705-1727      BIO SYSTEM                           BIO SYSTEMS            0170-002   $  1,000.00     23.51     214.29
P512      TP806-2229      BIO SYSTEM                           BIO SYSTEMS            0170-002   $  2,000.00     23.81     214.29
P513      M003-2933       BIO SYSTEM                           BIO SYSTEMS            0170-002   $  2,000.00     23.81     214.29
P600                      400 OIL CONTAINMENT BOOM             AMERICAN SEA CURTAIN   0170-002   $  4,475.00     53.27     479.46
P708      9108143008      LEL METER                            INDUSTRIAL SCIENTIFIC  0170-002   $  1,100.00     13.10     117.66
P714                      2400 FAST TANK                       TENYERS                0170-002   $  3,150.00     37.50     337.50
P720                      COPPUS BLOWER                        COPPUS                 0170-002   $  1,500.00     17.56     180.71
P721                      COPPUS BLOWER                        COPPUS                 0170-002   $  2,934.00     34.94     314.45
P722      WD796-6101      ALPHA 3100 OILWATER SEPARATOR        LANDA                  0170-002   $  8,835.50     81.38     732.38
P723      VB564034        WELDING MACHINE                      MILLER                 0170-002   $    500.00      5.95      53.57
P724      07921174        CONFINED SPACE SYSTEM MODEL #K1550                          0170-002   $  3,100.00     36.90     332.14
P725                      WRENCH SET/TOOLS                     CRAFTSMAN              0170-002   $    510.24      6.07      54.67
P730      54699V          FALL PROTECTION & RETRIEVE           MILLER                 0170-002   $  2,200.00     25.19     235.71
P731      CC0243          LASER TRANSIT                                               0170-002   $    895.00     10.65      95.89
P732      973500003       HEPA VAC                             EUROCLEAN              0170-002   $  1,225.00     14.56     131.25
P733      9735000032      HEPA VAC                             EUROCLEAN              0170-002   $  1,225.00     20.42     183.75
P734      973500006       HEPA VAC                             EUROCLEAN              0170-002   $  1,225.00     14.58     131.25
P735      973500005       HEPA VAC                             EUROCLEAN              0170-002   $  1,225.00     14.58     131.25
P737      903046013       LEL METER                            INDUSTRIAL SCIENTIFIC  0170-002   $    500.00      5.95      53.57
P738      53625V          FALL PROTECTION/BLOCK                MILLER                 0170-002   $  1,474.85     17.56     158.02
P739                      SOIL SAMPLER BORE KIT                ARTS MANUFACTURING     0170-002   $  1,000.00     11.90     107.14
P740      TK-02           VAC-U-MAX CLOSED TOP DRUM            VAC-U-MAX              0170-002   $  1,000.00     11.90     107.14
P741      55D-D61         VAC-U-MAX OPEN TOP DRUM              VAC-U-MAX              0170-002   $  1,000.00     11.90     107.14
P743                      FILTER PRESS                         ELMCO                  0170-002   $  2,000.00     23.61     214.29
P744                      EXPLOSION PROOF LIGHTS                                      0170-002   $    900.00     10.71      96.43
P745                      HAZCAT KIT                           HAZTECH                0170-002   $  2,713.23     32.30     290.70
P746      38511847X7      CHAIN SAW                            STILH                  0170-002   $    446.90      5.32      47.88
P802      D75453111       LAPTOP                               TOSHIBA                0176-002   $  2,009.57     33.50     301.48
P804                      COMPUTER                             GATEWAY                0176-002   $  2,590.00      0.00      56.79
P807      11BHNTZ         TYPEWRITER                           IBM                    0170-002   $    575.00      9.58      89.25
P808                      AUTOMATED PHONE SYSTEM               SAMSUNG                0175-002   $ 13,774.32    153.96   1,475.82
P809                      435 CDS LAPTOP                       TOSHIBA                0176-002   $  1,585.95     26.43     237.89
P908                      CELL PHONE                           MOTOROLA               0170-002   $    500.00      0.00       0.00
P909                      CELL PHONE                           MOTOROLA               0170-002   $    500.00      0.00       0.00
P910                      CELL PHONE                           MOTOROLA               0170-002   $    500.00      0.00     211.11
P911                      CELL PHONE                           MOTOROLA               0170-002   $    500.00      0.00     211.11
P912                      CELL PHONE                           MOTOROLA               0170-002   $    500.00      0.00     211.11
                          OFFICE FILES                         DELATTE METALS         0174-002   $    785.94      9.38      46.78

<CAPTION>
ID            ACCUM-99      NBV
----        ----------   ---------

<S>         <C>          <C>
P305           410.95       189.05
P306           882.74       617.25
P307           616.43       283.57
P400           439.08        60.91
P403         1,041.47     1,357.53
P404        10,273.81     4,725.19
P500         1,164.88       735.12
P501         1,301.35       596.65
P502         1,301.35       596.65
P508           684.92       315.08
P509           684.92       315.08
P510         1,301.35       698.65
P511         1,369.84       630.16
P512         1,368.54       630.16
P513         1,389.54       630.16
P600         1,930.29     2,544.71
P708           753.41       346.59
P714         2,583.75       568.25
P720         1,027.38       472.52
P721         1,541.99     1,392.91
P722         2,948.49     3,887.01
P723           342.46       157.54
P724         2,123.25       876.75
P725           220.09       290.15
P730           516.83     1,665.17
P731           222.68       872.32
P732           312.57       912.43
P733           437.60       787.40
P734           312.57       912.43
P735           312.57       912.43
P737           342.48       157.54
P738         1,010.16       464.89
P739           684.92       315.08
P740           215.87       784.13
P741           215.87       784.13
P743         1,060.16       819.84
P744           618.43       283.57
P745           812.89     1,900.34
P746           194.01       252.89
P802         1,258.40       751.47
P804         2,690.00        (1.00)
P807           345.32       229.58
P808         3,312.40    10,481.92
P809           728.95       857.29
P908           500.00         0.00
P909           500.00         0.00
P910           500.00         0.00
P911           500.00         0.00
P912           500.00         0.00
                48.78       739.18
</TABLE>

                                  Page 5 of 6
<PAGE>   74
<TABLE>
<CAPTION>
  ID               SERIAL                          MAKE & MODEL                        AP VENDOR              FAACCT
  --               ------                          ------------                        ---------              ------
<S>         <C>                         <C>                                     <C>                          <C>
                                        TOSHIBA                                 ANDREA LINDQUIST             0176-002
                                        TOSHIBA                                 LAURIE TEUN                  0176-002
                                        TOSHIBA                                 BRYAN CHERNICK               0176-002
                                        HP LASER JET 5SI                        COMPUTERS & APPLICATIONS     0176-002
                                        15 HP 3 PHASE MOTOR                     DAVIS PUMP & ELECTRIC        0170-002
                                        PH METER PROBE/RECEPTACLE               TBI BAILEY                   0170-002
                                        101165 DIGITEC PRINT                    MOUNTAIN PACIFIC MACHINE     0170-002
                                        TOSHIBA                                 CAROL TIERNEY                0176-002
                                        TOSHIBA                                 LAURIE TEUN                  0176-002
</TABLE>

<TABLE>
<CAPTION>
  ID           BOOK_BASIS             SEP-99             DEP EXP-99          ACCUM-99              NBV
  --           ----------             ------             ----------          --------              ---
<S>          <C>                 <C>                <C>                  <C>                <C>
             $       800.00            13.33              105.67               105.67              693.33
             $     1,521.45            25.36              177.50               177.50            1,343.96
             $       790.20            13.17               52.68                52.68              737.52
             $     2,334.84            38.91              116.74               116.74            2,218.10
             $       694.02            11.57               23.13                23.13              670.89
             $     1,237.14            20.82               41.24                41.24            1,195.90
             $     2,197.25            36.62               73.24                73.24            2,124.01
             $     1,646.17            30.77               61.54                61.54            1,784.53
             $     1,751.75            29.20               58.39                58.39            1,593.36

             $ 1,663,351.18      $ 20,257.41        $ 183,975.96         $ 697,014.67       $  868,346.51
</TABLE>

FURNITURE AND EQUIPMENT

                                  Page 6 of 6
<PAGE>   75
                                                                 SCHEDULE 1.E.
                                                              ANCILLARY ASSETS

     Ancillary Assets as defined in the Asset Purchase and Assignment Agreement
shall mean and include all documents, books and records, instruments, databases,
stationery, preprinted forms, programs, records, intangibles, consultants'
reports and memoranda, customer, vendor and supplier lists, trade secrets and
other proprietary or confidential information, work files and work products
necessary for closing out delivery orders, telephone numbers and other assets of
Seller, in each case which relate solely or primarily to the Acquired Assets or
are used solely or primarily with Acquired Assets or are used solely or
primarily in the performance of the EPA Contracts. Ancillary Assets shall not
include any EPA Contract Equipment or Excluded Assets.

                                       24

<PAGE>   76

                                  SCHEDULE 3.C

                         SCHEDULE OF ASSUMED LIABILITIES

     The only liabilities of Sellers that Purchaser shall be obligated to assume
are as follows:

     (1)  The direct obligations of Sellers under the EPA Contracts relating to
          performance after the Closing Date; and

     (2)  Obligations and liabilities of Sellers, whether to the EPA or third
          parties that can be reasonably and foreseeably implied from the terms
          of the EPA Contracts or the Federal Acquisition Regulations as
          necessary or required in connection with the assumption, novation or
          performance of the EPA Contracts, from and after the Closing Date.
          Examples of the foregoing shall include, but are not limited to, any
          obligations of Sellers under the EPA Contracts to use minority or
          small business contractors or the requirement to lease or acquire
          particular items of equipment necessary to complete performance under
          the EPA Contracts. This does not include government or third party
          claims arising out of Seller's performance of the EPA contract prior
          to the Closing Date.

     (3)  Seller leases at the property located at 170 West Dayton, Edmonton,
          WA.

                                       25

<PAGE>   77

                                                                  SCHEDULE 1.D
                                                        EDMONDS FACILITY LEASE

                               SEE ATTACHED LEASE

                                       26

<PAGE>   78

                                                                SCHEDULE 3.A.(j)
                                        BILL OF SALE, ASSIGNMENT AND ASSUMPTION

     CET Environmental Services, Inc., a California corporation having an
address at 7032 D. Revere Parkway, Englewood, CO 80112 ("CET") (hereinafter
Seller), as of the _________ day of ________________, 1999, in consideration of
the sum of ONE DOLLAR ($1.00) and other good and valuable consideration paid to
Sellers by IT CORPORATION, a corporation organized and existing under the laws
of the State of California, having its principal office at 2790 Mosside
Boulevard, Monroeville, Pennsylvania, 15146-2792 ("Purchaser"), the receipt and
sufficiency of which is hereby acknowledged, hereby sells, transfers, conveys,
sets over and assigns to Purchaser, it successors and assigns, the following:

     All Acquired Assets (as more particularly listed in the referenced
Schedules to the Asset Purchase and Assignment Agreement (the "Purchase
Agreement") between the parties, incorporated by reference herein and made part
thereof), including:

     A.   the EPA Contracts, as listed in the Schedule 1 A. of the Purchase
          Agreement;

     B.   the EPA Contract Equipment, as listed in Schedule 1.C of the Purchase
          Agreement;

     C    the Insurance and Indemnity Rights and the Claim Rights, each as
          described in Section 1.D of the Purchase Agreement; and

     D.   the Ancillary Assets, as listed in Schedule 1.D of the Purchase
          Agreement.

     In consideration of the above, the Purchase hereby assumes those
obligations, indebtedness and liabilities of the Seller described on Schedule
3.D to the Purchase Agreement (the "Assumed Liabilities").

     Seller warrants that IT has good and marketable title to the Acquired
Assets and are conveying the Acquired Assets to Purchaser free and clear of all
liens, encumbrances, claims charges or other liabilities (except for the Assumed
Liabilities), and agrees to execute all documents necessary or advisable to
convey such title to Purchaser. Purchaser acknowledges that Sellers are making
no express or implied warranty or representation as to the condition,
merchantability or suitability as to any of the Acquired Assets and that
Purchaser takes the Acquired Assets of Sellers "as is" and "where is"; provided,
however that Purchaser shall not be obligated to take title to:

     A.   contaminated EPA Contract Equipment not located on an active EPA
          Contract job site unless Seller agree to cause or pay for
          decontamination of same; or

                                       27

<PAGE>   79

     B.   any EPA Contract Equipment which is incapable of being used for the
          original purpose for which it was intended.

     The Seller covenants arid agrees to warrant and defend the sale, transfer
or assignment of the EPA Contracts from and against all persons.

     The Purchaser covenants and agrees to warrant and defend the purchase,
transfer, and assumption of the Assumed Liabilities, from and against all
persons.

     All capitalized terms not otherwise defined herein shall have the meaning
ascribed to such terms in the Purchase Agreement.

     IN WITNESS WHEREOF, each of the undersigned has duly executed this Bill of
Sale, Assignment and Assumption on the day and year first above written.

                                       CET Environmental Services, Inc.

                                       By:
                                          ------------------------------------
                                       Its:
                                           -----------------------------------

                                       IT Corporation

                                       By:
                                          ------------------------------------
                                       Its:
                                           -----------------------------------

                                       28
<PAGE>   80

                                                                   SCHEDULE 6.A
                                                    EPA LEASED EQUIPMENT LEASES

                        TO BE PROVIDED PRIOR TO CLOSING.

                                       29

<PAGE>   81

                                                            SCHEDULE 11.A (vi)
                                                                 LABOR MATTERS

                                      NONE

                                       30

<PAGE>   82

                                                           Schedule 11.A (vii)
                                                                       PERMITS

                                      NONE

                                       31

<PAGE>   83

                                                             SCHEDULE 11(viii)
                                                         ENVIRONMENTAL MATTERS

                                      NONE

                                       32

<PAGE>   84

                                                            SCHEDULE 11.A (ix)
                                                          GOVERNMENT CONTRACTS

     Seller is currently suspended from government contract and grant programs
by the U.S. Environmental Protection Agency for the reasons set forth in the
Notice of Suspension, dated August 10, 1999, from Robert F. Meumier, Debarring
to the Notice of Suspension.

                                       33

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