Document:

<PAGE>   1
                                                                   EXHIBIT 10.19
                             BASIC LEASE INFORMATION

                        LEASE DATED AS OF JANUARY 7, 2000

LANDLORD:                  ACRE HPC, LLC

TENANT:                    The Holmes Group, Inc.

COMMENCEMENT DATE:         As of December 1, 1999

RENT COMMENCEMENT
DATE:                      As to the warehouse component of the Improvements,
                           September 1, 2000. As to the office building
                           component of the Improvements, December 1, 2000.

LEASE EXPIRATION
DATE:                      December 31, 2015, unless extended pursuant to
                           paragraph 3(c) of this Lease.

PRIMARY TERM FIXED RENT:   The annual Fixed Rent during the Primary Term of
                           this Lease shall be payable monthly in advance as
                           follows:

(a)      From the date of delivery of this Lease to but not including the Rent
         Commencement Date, no Fixed Rent shall be payable, but Tenant shall be
         responsible for Additional Rent during such period, as provided in the
         Lease.

(b)      Subject to subparagraph (d) below, from September 1, 2000 through
         November 30, 2000, Fixed Rent shall be paid at the annual rate of
         $1,472,520, and shall be payable on the fifteenth day of each month
         commencing September 15, 2000.

(c)      Subject to subparagraph (d) below, from December 1, 2000 through August
         31, 2002: at the annual rate of $2,265,415, 1/12 of which shall be
         payable in advance on the fifteenth day of each month, commencing on
         December 15, 2000. If Tenant requests Landlord to approve change orders
         involving any cost in connection with the construction of the
         Improvements on the Premises which exceed the guaranteed maximum price
         under the Construction Contract or if the Mortgagee requires Landlord
         to invest funds in excess of the guaranteed maximum price under the
         Construction Contract in order to complete the Premises, and Landlord
         actually advances funds for such purpose (which Landlord agrees to do
         to the extent of the first $500,000 which is shown as the contingency
         in the initial Project Budget), then Fixed Rent shall be increased by
         an amount determined by using an annual rental constant of 11.7% on the
         first $500,000 of such Landlord advances and 12.5% on any amounts in
         excess of $500,000, which increased rentals shall be confirmed by a
         supplement to this Lease. Notwithstanding the preceding sentence,
         Tenant shall have the right for ten

<PAGE>   2

         (10) days after submission of a requisition to advance funds to pay the
         costs in excess of the guaranteed maximum price under the Construction
         Contract, in which case there will be no increase in Fixed Rent in
         respect of the amounts so paid by Tenant; such payment shall not be
         deemed to be Additional Rent, but shall be accounted for as a leasehold
         improvement. If the Improvements are not Substantially Complete by
         December 1, 2001 for reasons of force majeure which excuse timely
         performance under the Construction Contract, then Landlord may invest
         such further funds as it in good faith deems necessary to bring the
         Improvements to Substantial Completion, and annual Fixed Rent will be
         increased by 12.5% of any sums expended for such purpose (in addition
         to those funds described in the preceding sentence) which increased
         rents shall be confirmed by a supplement to this Lease. If solely by
         reason of force majeure as described in the Construction Contract, the
         Improvements are not Substantially Complete by December 1, 2000, Fixed
         Rent shall be reduced to the product of (x) the then applicable rate of
         interest on the Mortgage, and (y) the excess of the total amount of the
         Project Budget over the amount then secured by the Mortgage; such
         reduction shall terminate as additional funds are drawn down under the
         Mortgage. Upon Final Completion of the Improvements, if the amount
         Landlord has invested in the Premises (including amounts represented by
         the Mortgage) is less than the total amount of the Project Budget, then
         annual Fixed Rent for the first thirty-six months of the Term shall be
         reduced by 8% of the excess of the total amount of the Project Budget
         over the amount so invested by Landlord. If Tenant has, pursuant to
         this paragraph, paid for a portion of construction because Mortgagee
         refused to fund a portion of a requisition due to the fact that certain
         line items of the Project Budget were being exceeded, and if after
         Final Completion of the Improvements, the Project Budget has not been
         exceeded in the aggregate and Landlord may draw down funds from
         Mortgagee, Landlord agrees to draw such funds to the extent of
         construction costs paid by Tenant for the reasons set forth in this
         sentence, and to pay such proceeds to Tenant (in which case the Fixed
         Rent will be appropriately increased). If Landlord has invested
         additional equity funds because Mortgagee refused to fund a portion of
         a requisition due to the fact that certain line items of the Project
         Budget were being exceeded, Landlord agrees to draw down funds from
         Mortgagee to the extent available and as soon as possible under the
         terms of the Loan Documents in order to result in the capitalization of
         the Premises being 25% equity and 75% debt, provided that Landlord
         shall receive an equity return of 15% per annum on such additional
         equity funds (pro rated for any period shorter than one year).

(d)      Beginning September 1, 2002, annual Fixed Rent shall be the annual
         Fixed Rent payable during the preceding annual period and increased
         (but not decreased) in such month and every thirty-six months
         thereafter during the Primary Term by the lesser of (x) a dollar amount
         equivalent to the product of (a) the annual Fixed Rent payable during
         the immediately preceding period, and (b)(i) the percentage increase in
         the All Urban Consumer Price Index - All Items, All Cities over the
         immediately preceding three year period, multiplied by (ii) 1,000, or
         (y) 6.75% of the annual Fixed Rent payable during the immediately
         preceding period, one twelfth (1/12th) of which shall be payable in
         advance on the fifteenth day of month, beginning on September 15, 2002.
         There shall be no adjustment in the date or the amount of the triennial
         re-set of Fixed Rent in the event one component of the Improvements is
         Substantially Complete before the other.

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(e)      Tenant shall receive a credit against Fixed Rent for the net amount of
         any liquidated damages under the Construction Contract when such
         damages are actually received by Landlord, it being understood that
         Landlord has no duty to seek such damages under the Construction
         Contract, although Tenant shall have the right to seek such damages
         pursuant to the rights granted to Tenant in Section 8 and 30 of this
         Lease for the account of Landlord. Receipt by Landlord shall include
         receipt by Mortgagee when Mortgagee applies such amount against the
         principal secured by a Mortgage, in which case the credit shall be in
         an amount equal to reduction in monthly debt service on the Mortgage;
         if there is no reduction in debt service on the Mortgage, then such net
         amount shall be paid to Tenant upon the earlier to occur of (x) the
         maturity of the debt secured by the Mortgage, (y) the refinancing of
         such Mortgage, and (z) the sale of the Premises by the Landlord.

EXTENSION TERM RENT:         The annual Fixed Rent during each Extension Term
-------------------          shall be the amount of Fixed Rent payable during
                             the last year of the preceding Term of this Lease,
                             increased (but not decreased) on the first day of
                             the thirty-seventh month after the last increase
                             in Fixed Rent under this Lease, and every
                             thirty-six months thereafter by the lesser of (x)
                             a dollar amount equivalent to the product of (a)
                             the annual Fixed Rent payable during the
                             immediately preceding period and (b) the
                             percentage increase in the All Urban Consumer
                             Price Index - All Items All Cities over the
                             immediately preceding three year period,
                             multiplied by (ii) 1,000, and (y) 6.75%, payable
                             monthly in advance.

LANDLORD ADDRESS
FOR PAYMENT:                 ---------------------------
                             ---------------------------
                             ---------------------------

TENANT ADDRESS:              The Holmes Group, Inc.
                             233 Fortune Boulevard
                             Milford, Massachusetts 01757

<PAGE>   4

                                 LEASE AGREEMENT

                                     Between

                                  ACRE HPC, LLC

                                   as Landlord

                                       and

                             THE HOLMES GROUP, INC.

                                    as Tenant

                           Dated as of January 7, 2000

<PAGE>   5

                                TABLE OF CONTENTS

                                                                          PAGE

DEFINITIONS..................................................................2

1.       DEMISE OF PREMISES; QUIET ENJOYMENT.................................6

2.       USE.................................................................7

3.       TERM................................................................8

4.       RENTAL..............................................................8

5.       TAXES...............................................................9

6.       NET LEASE; NON-TERMINABILITY.......................................11

7.       SERVICES...........................................................12

8.       REPAIRS AND MAINTENANCE; REPLACEMENT...............................13

9.       DESTRUCTION OF OR DAMAGE TO PREMISES...............................14

10.      INSURANCE, HOLD HARMLESS AND INDEMNIFICATION.......................16

11.      COMPLIANCE WITH LAWS, COVENANTS....................................19

12.      PARTIAL TAKING.....................................................20

13.      SUBSTANTIAL TAKING.................................................21

14.      DEFAULT:   EVENTS OF DEFAULT.......................................22

15.      REMEDIES...........................................................23

16.      SUBORDINATION......................................................26

17.      LANDLORD'S RIGHT OF ENTRY..........................................27

18.      NOTICES............................................................27

19.      ESTOPPEL CERTIFICATES; FINANCIAL DATA..............................29

20.      MECHANICS'  LIENS..................................................30

                                        i

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21.      END OF TERM........................................................31

22.      ALTERATIONS........................................................32

23.      MEMORANDUM OF LEASE ...............................................35

24.      SUBLETTING/ASSIGNMENT..............................................35

25.      HAZARDOUS MATERIAL.................................................37

26.      EARLY TERMINATION..................................................40

27.      TENANT ALLOWANCE; FINANCING........................................40

28.      REPRESENTATIONS AND WARRANTIES OF TENANT...........................41

29.      REPRESENTATIONS AND WARRANTIES OF LANDLORD.........................43

30.      LANDLORD'S WORK....................................................44

31.      RESERVED...........................................................47

32.      TENANT'S RIGHT OF FIRST REFUSAL....................................47

33.      MISCELLANEOUS PROVISIONS...........................................48

                                       ii

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EXHIBITS:

A.       LEGAL DESCRIPTION - LAND
B.       DESCRIPTION OF EQUIPMENT, PERSONAL PROPERTY AND FIXTURES
C.       PERMITTED ENCUMBRANCES
D.       PROJECT BUDGET

                                       iii

<PAGE>   8

         THIS LEASE, made and entered into as of January 7, 2000 (together with
all amendments and supplements hereto, this "Lease"), by and between ACRE HPC,
LLC, a Delaware limited liability company with offices c/o American Corporate
Real Estate LLC, 800 Third Avenue, 40th Floor, New York, New York 10022
(together with any successor or assigns, hereinafter called the "Landlord") and
THE HOLMES GROUP, INC., a Massachusetts corporation having an address at 233
Fortune Boulevard, Milford, Massachusetts 01757 (together with any permitted
successor or assigns, hereinafter collectively called the "Tenant").

                                    RECITALS

A. Capitalized terms used in these recitals and elsewhere in this Lease and not
otherwise defined herein have the meanings set forth in the definitions section
immediately following these recitals.

B. Landlord has acquired the land described on EXHIBIT A hereto (the "Land") and
has engaged Consigli Construction Co., Inc., a Massachusetts corporation having
an address at 72 Sumner Street, Milford, Massachusetts 01757 (together with any
permitted successor or assign under the Construction Contract, "General
Contractor") to cause the design and construction and installation of the
Improvements on the Land pursuant to the Approved Plans.

C. Landlord and Tenant agree that Tenant should have certain rights and
obligations with respect to Landlord's Work and the parties desire to set forth
such rights and obligations upon the terms and conditions set forth in this
Lease.

D. In connection with its acquisition of the Land and its engagement of General
Contractor to cause the construction of certain of the Improvements thereon,
Landlord has obtained financing in the principal amount of up to Seventeen
Million Four Hundred Thousand Dollars ($17,400,000) (the "Construction Loan")
from Fleet National Bank ("Lender") pursuant to the terms and conditions of the
Construction Loan Documents.

E. Landlord desires to lease the Land and the Improvements to Tenant, and Tenant
desires to lease the Land and Improvements from Landlord.

F. Tenant has received and reviewed copies of the Construction Contract and the
Construction Loan Documents and is fully aware of the terms and conditions
thereof.

G. Tenant has been fully involved in the testing and preparation of the Land for
the construction of the Improvements and the drafting and review of the Approved
Plans to date. Tenant is satisfied that the Premises are acceptable (or will be
acceptable upon completion of the Improvements) to Tenant for its business
purposes, subject to its review and approval of the plans not yet prepared which
shall be included in the term "Approved Plans".

NOW, THEREFORE, in consideration of the following agreements and covenants, the
mutual sufficiency of which is hereby acknowledged, the parties agree as
follows:

                                       -1-

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                                   DEFINITIONS

Capitalized terms used herein shall have the following meanings for all purposes
of this Lease and shall be equally applicable to both the singular and plural
forms of the terms herein defined.

         "ADDITIONAL RENT" means all amounts, liabilities and obligations other
than Fixed Rent which Tenant assumes or agrees to pay under this Lease to
Landlord or others, but shall exclude capital investments of the character
described in paragraph (c) of the Basic Lease Information or alterations of the
character described in paragraph 22. In the event of casualty which damages the
Improvements while the Construction Loan is outstanding, and Landlord, if such
casualty occurs prior to Substantial Completion of the component in question,
determines in the exercise of commercially reasonable judgment that the affected
Improvements can be restored, but that such restoration is not reasonably
anticipated to be completed prior to the initial maturity of the Construction
Loan, then Landlord shall exercise its right to extend the term of the
Construction Loan for a period not to exceed one (1) year. If Landlord is
required to so extend the term of the Construction Loan for the sole purpose of
permitting restoration of the Improvements while the Construction Loan is
outstanding, Additional Rent shall include an amount equal to the extension fee,
if any, charged by the construction lender for so extending the Construction
Loan and an amount equal to any increased interest or other charges imposed by
the construction lender during the period of such extension. Moreover, if solely
as a result of (i) an Event of Default under this Lease which has occurred and
is continuing or (ii) a default by Tenant under any loan or credit agreement to
which it is now or hereafter a party in connection with which a creditor gives
Tenant a notice of default which default has not been waived by such creditor or
cured, the lender declares a default under the Construction Loan, Tenant shall
pay as Additional Rent any fees, costs, and increased interest imposed by the
construction lender in order for such construction lender to waive such default.

         "AFFILIATES" means entities controlled by, controlling or under common
control with Tenant.

         "APPRAISER" means the firm or person that has prepared and delivered
the Closing Appraisal and any "bringdowns" thereof in accordance with the terms
of this Lease.

         "APPROVED PLANS" means the plans and specifications prepared and to be
prepared by the Architect and other design professionals and approved by
Landlord and Tenant pursuant to this Lease and approved by Lender pursuant to
the Construction Loan Documents, as the same may be modified from time to time
by Change Orders or otherwise in accordance with the terms of this Lease, the
Construction Contract and the Construction Loan Documents.

         "ARCHITECT" means Adam Kornafel of AM Design Architects, Inc., a
Connecticut corporation with an address at 700 Plaza Middlesex, Middletown, CT
06457, Massachusetts Registration No. 10437.

                                       -2-

<PAGE>   10

         "BASIC LEASE INFORMATION" means the pages preceding this Lease which
are hereby incorporated by reference.

         "CHANGE ORDER" has the meaning set forth in the Construction Contract.

         "CLOSING APPRAISAL" means an MAI appraisal in form and substance
acceptable to Landlord and provided to Landlord on or prior to the Closing Date
which indicates an estimated fair market value and useful life of the Premises
on the Closing Date, assuming construction of the Improvements in accordance
with the Approved Plans.

         "CLOSING DATE" means January 14, 2000.

         "CODE" means the Internal Revenue Code of 1986, as amended from time to
time.

         "COMMENCEMENT DATE" has the meaning specified in the Basic Lease
Information.

         "COMPLETION DATE" means the date on which either component of the
Improvements is Substantially Complete, and all certificates, waivers and other
instruments, agreement and other documents required to satisfy the definition of
"Substantially Complete" pursuant to the terms of the Construction Contract have
been executed and delivered as required thereunder.

         "CONSTRUCTION CONTRACT" means that certain Standard Form of Agreement
Between Owner and Design Builder dated as of January 7, 2000 entered into by and
between Landlord and the General Contractor, together with that certain Rider
attached thereto dated as of January 7, 2000, and together with all other
amendments thereto from time to time.

         "CONSTRUCTION LOAN" has the meaning specified in the recitals hereof.

         "CONSTRUCTION LOAN DOCUMENTS" means (i) that certain $17,400,000
Construction Loan Agreement dated as of January 7, 2000, by and between Landlord
and Lender, (ii) that certain Promissory Note in the principal amount of
$17,400,000 dated as of January 7, 2000, by Landlord, as maker, to Lender, as
Payee, (iii) that certain Mortgage and Security Agreement dated as of January 7,
2000, by Landlord, as mortgagor, to Lender, as mortgagee, (iv) that certain
Assignment of Leases and Rents dated as of January 7, 2000, by Landlord, as
assignor, to Lender, as Assignee, (v) that certain Collateral Assignment and
Security Agreement in respect of Contracts, Licenses and Permits dated as of
January 7, 2000, by Landlord, as assignor, and Lender, as assignee, and (vi) any
other agreements and instruments evidencing or entered into in connection with
the Construction Loan as of the date hereof.

         "COST OF THE PROJECT" means at any time the sum of (i) the cost of
acquisition of the Land, (ii) the cost of design, acquisition, construction,
financing and installation of the Improvements pursuant to the Construction
Contract, (iii) certain transaction costs relating to the acquisition of the
Land and to transactions contemplated by this Lease, the Construction Contract
and the Construction Loan Documents, including construction period interest,
acquisition fees, legal fees and expenses, appraisal fees, asset management
fees, environmental site assessment fees and title and survey

                                       -3-

<PAGE>   11

expenses, and (iv) the costs of ownership of the Land and Improvements arising
during or attributable to the period from the Commencement Date through the
Completion Date, all as determined in good faith by Landlord and Tenant and
accompanied by supporting documentation and materials satisfactory to Landlord.

         "DEFAULT" means any event or circumstance that with the passage of time
or the giving of notice or both would constitute an Event of Default hereunder.

         "ENVIRONMENTAL LAWS" is defined in paragraph 25(b) of this Lease.

         "EVENT OF DEFAULT" is defined in paragraph 14 of this Lease.

         "EXTENSION TERM" is defined in paragraph 3(b) of this Lease.

         "FINAL COMPLETION" has the meaning specified in the Construction
Contract.

         "FIRST MORTGAGE" or "MORTGAGE" shall mean a first mortgage on the
Premises given by Landlord to the Lender to secure a loan financing or
refinancing the Landlord's interest in the Premises.

         "FIXED RENT" is defined in paragraph 4 of this Lease.

         "GENERAL CONTRACTOR" has the meaning set forth in the recitals to this
Lease.

         "IMPOSITION" means the various taxes and other charges referred to in
paragraph 5, the present and future governmental laws and regulations more
specifically described in paragraph 11.

         "IMPROVEMENTS" means the interest of Landlord in all of the buildings,
structures, improvements, and all building fixtures therein (including, without
limitation, parking areas and driveways) now or hereafter located on the Land,
including the improvements described in the recitals to this Lease which are to
be constructed pursuant to the Construction Contract, and including without
limitation the equipment, personal property and fixtures described on EXHIBIT B
hereto.

         "INDEMNIFIED PARTIES" means Landlord and its shareholders, officers,
directors, partners, employees, attorneys and agents, licensees, and any holder
of any beneficial interest in any of them, or their successors and assigns,
provided that until Final Completion of a component of the Improvements, the
term "Indemnified Parties" with respect to such component shall mean Landlord
only.

         "LAND" means the land, but none of the Improvements thereon, described
in EXHIBIT A hereto.

         "LANDLORD" is defined in the first paragraph of this Lease.

                                       -4-

<PAGE>   12

         "LANDLORD'S AUTHORIZED REPRESENTATIVES" means any of R. Michael Dorsch
III, H. Cabot Lodge III or Barclay G. Jones III.

         "LANDLORD'S WORK" means the construction of the Improvements shown or
described on the Approved Plans pursuant to the Construction Contract.

         "LAWS" means all federal, state and local laws, ordinances, rules,
regulations and requirements which have been enacted as of the date of this
Lease and which are or will become applicable to the Premises including, without
limitation, all building laws, health codes, safety rules, handicapped access
laws (including the Americans with Disabilities Act) and zoning subdivision laws
and regulations.

         "LEASE" is defined in the first sentence of this Lease.

         "LEASE EXPIRATION DATE" has the meaning specified in the Basic Lease
Information.

         "MEMORANDUM OF LEASE" means any short form or memorandum of this Lease
executed and delivered by Landlord and Tenant for recording purposes.

         "MORTGAGEE" shall mean Lender and any other holder of a First Mortgage
with respect to the Premises or any part thereof.

         "OFFER AMOUNT" means the Landlord's total investment in the Premises,
including Costs of the Project and any other money invested in the Premises. At
the date hereof, the parties estimate the Offer Amount will be $21,457,000, but
will be increased if costs in excess of those specified in the Construction
Contract are incurred by Landlord.

         "OFFER NOTICE" is defined in paragraph in paragraph 32(a) of this
Lease.

         "OPERATIVE DOCUMENTS" means this Lease, the Memorandum of Lease, the
Construction Contract, and the Construction Loan Documents.

         "OVERDUE RATE" means the greater of (x)thirteen percent (13%) per annum
or (y) four percent (4%) plus the prime or base interest rate of money center
banks as reported from time to time in the Wall Street Journal, but in any
event, if lower, the maximum annual interest rate allowed by law for business
loans (not primarily for personal, family or household purposes).

         "PERSON" means any individual, corporation, partnership, limited
liability company, joint venture, association, joint stock company, trust,
trustee(s) of a trust, unincorporated organization, or government or
governmental authority, agency or political subdivision thereof.

         "PERMITTED ENCUMBRANCES" means:

                                       -5-

<PAGE>   13

             (a)  Any liens for taxes, assessments and other governmental
                  charges and any liens of mechanics, materialmen and laborers
                  for work or services performed or materials furnished in
                  connection with the Premises, which are not due and payable;

             (b)  The easements, rights-of-way, encroachments, encumbrances,
                  restrictive covenants or other matters affecting the title to
                  the Premises or any part thereof set forth in Schedule B to
                  the policy of owner's title insurance (or commitments
                  therefor) delivered to and accepted by Landlord with respect
                  to the Premises in connection with the delivery of this Lease
                  as shown on EXHIBIT C attached hereto;

             (c)  This Lease and the rights of Tenant hereunder; and

             (d)  Utility easements benefiting the Premises in such location and
                  in form and substance acceptable to Landlord and Tenant.

         "PRIMARY TERM" is defined in paragraph 3(a) of this Lease.

         "PREMISES" is defined in paragraph 1 of this Lease.

         "PROJECT BUDGET" means the budget for the acquisition of the Land and
construction of the Improvements attached hereto as EXHIBIT D. The Project
Budget may be increased by up to $500,000, which Landlord has agreed to fund as
provided in the Basic Lease Information.

         "RENT" means Fixed Rent and Additional Rent.

         "RENT COMMENCEMENT DATE" has the meaning specified in the Basic Lease
Information.

         "SITE ASSESSMENTS" is defined in paragraph 25(d) of this Lease.

         "SITE REVIEWERS" is defined in paragraph 25(d) of this Lease.

         "SUBSTANTIALLY COMPLETE and "SUBSTANTIAL COMPLETION" have the meanings,
with respect to either the warehouse component or the office building component
of the Improvements, as specified in the Construction Contract.

         "TENANT'S TRADE FIXTURES" means all personal property of Tenant in or
on the Premises which is not necessary for the operation of the Improvements.

         "TERM" means the Primary Term, together with the Extension Terms.

         "TERMINATION DATE" is defined in paragraph 13 of this Lease.

1.       DEMISE OF PREMISES; QUIET ENJOYMENT

                                       -6-

<PAGE>   14

         (a) Landlord hereby demises and leases to Tenant and Tenant hereby
leases and rents from Landlord the Premises (it being understood that the
Improvements will be built after the Commencement Date), IN ITS "AS IS"
CONDITION, SUBJECT TO THE EXISTING STATE OF TITLE (WITHOUT EXPRESS OR IMPLIED
WARRANTY OF LANDLORD WITH RESPECT TO THE CONDITION, QUALITY, REPAIR OR FITNESS
OF THE PREMISES FOR A PARTICULAR USE OR TITLE THERETO, ALL SUCH WARRANTIES BEING
HEREBY WAIVED AND RENOUNCED BY TENANT), consisting of the Landlord's interest in
the Land, the Improvements, together with any easements, rights, and
appurtenances in connection therewith or belonging to said Land and
Improvements, all being collectively hereinafter referred to as "the Premises".
No easement for light, air or view is included with or appurtenant to the
Premises. The foregoing disclaimer has been negotiated by Landlord and Tenant,
each being represented by independent counsel, and is intended as a complete
negation of any representation or warranty by Landlord, express or implied.

         (b) Landlord covenants with Tenant, that upon the payment of the Fixed
Rent and Additional Rent and the performance of all the terms of this Lease,
Tenant shall at all times during the Term, peaceably and quietly enjoy the
Premises without any disturbance from Landlord or from any person claiming by,
through, or under Landlord. Exercise by Landlord of its rights to come upon the
Premises as set forth in this Lease shall not constitute a violation of this
paragraph.

         (c) Landlord hereby assigns to Tenant, without representation or
warranty, for the duration of this Lease, all warranties relating to the design,
construction, materials, equipment and services relating to the Premises to
facilitate Tenant's performance of its obligations hereunder. The foregoing
assignment shall automatically terminate and all rights in the representations
and warranties thereby assigned shall revert to Landlord effective upon the
expiration or termination of this Lease. If any such warranty is, by its terms,
not assignable by Landlord, then Tenant shall have the right to enforce such
warranty in the name and on behalf of Landlord, all at Tenant's expense, and
Landlord shall hold any such unassignable warranty interest in trust for the
benefit of Tenant for the duration of this Lease.

2.       USE

         Tenant may, subject to applicable zoning restrictions and any recorded
covenants or restrictions, use and occupy the Premises for office, warehouse,
research & development, light manufacturing and assembly, and
repair/refurbishing purposes only. Tenant shall not use, suffer or permit the
Premises, or any portion thereof, to be used by Tenant, any third party or the
public, as such, without restriction or in such manner as might impair
Landlord's title to the Premises, or in such manner as might reasonably make
possible a claim or claims of adverse usage or adverse possession by the public,
as such, or third Persons, or of implied dedication of the Premises, or any
portion thereof. With the consent of Landlord, which shall not be unreasonably
withheld, Tenant may use the Premises for other lawful purposes that do not
decrease the value or utility of the Premises, increase the cost of insurance on
the Premises or increase the risk of environmental contamination of the
Premises.

                                       -7-

<PAGE>   15

3.       TERM

         a. The term of this Lease shall be for a period of approximately
sixteen (16) years (the "Primary Term") and shall commence on the Commencement
Date and end on the Lease Expiration Date.

         b. Tenant shall have the right, at its option, to extend the Primary
Term of this Lease, for three (3) extension terms (the "Extension Terms"), which
shall extend the Primary Term for an additional five (5) years each. Each
Extension Term shall commence on the day after the expiration of the preceding
term and shall expire on the fifth (5th) anniversary of the Lease Expiration
Date in the case of the first Extension Term, on the tenth (10th), anniversary
of the Lease Expiration Date in the case of the second Extension Term, and on
the fifteenth (15th) anniversary of the Lease Expiration Date in the case of the
third Extension Term. Subject to the next sentence, the option to extend the
Term of this Lease as described above shall be deemed exercised by Tenant,
unless at least eighteen (18) months prior to the Lease Expiration Date or
expiration of the Extension Term, as the case may be, Tenant shall have
delivered notice to Landlord of Tenant's irrevocable decision to terminate this
Lease on the Lease Expiration Date or expiration of the applicable Extension
Term, as the case may be. Landlord shall give Tenant notice of its right to
terminate this Lease, such notice to be given at any time after the
twenty-fourth (24th) month prior to the Lease Expiration Date; failure of
Landlord to deliver such notice shall not be a default and shall have the effect
of extending the date for Tenant to give its notice to terminate this Lease
pursuant to this Section 3 to a date that is ten (10) business days after
Landlord gives such notice to Tenant with such termination effective eighteen
(18) months after the date Landlord gave such reminder notice to Tenant. Subject
to the provisions of paragraph 4, the terms and conditions of this Lease shall
apply to each Extension Term with the same force and effect as if such Extension
Term had originally been included in the Primary Term of the Lease. The right of
Tenant to the Extension Terms shall be conditioned upon this Lease being in full
force and effect as of the Lease Expiration Date or expiration of the first,
second and third Extension Term, as the case may be. The Primary Term, together
with any Extension Term, shall constitute the "Term" of this Lease.

4.       RENTAL

         a. Tenant shall pay to Landlord the following amounts as rent for the
Premises:

               i. During the Term of this Lease from and after the Rent
Commencement Date, Tenant shall pay to Landlord, as fixed monthly rent, the
amount of monthly rent specified in the Basic Lease Information (the "Fixed
Rent").

               ii. Throughout the Term of this Lease, Tenant shall pay, as
additional rent, all other amounts of money and charges required to be paid by
Tenant under this Lease, whether or not such amounts of money or charges are
designated Additional Rent. Such additional Rent shall not include capital
investments of the character described in paragraph (c) of the Basic Lease
Information or paragraph 22 hereof. As used in this Lease, "Rent" shall mean and
include all Fixed Rent and Additional Rent payable by Tenant in accordance with
this Lease.

                                       -8-

<PAGE>   16

         b. It is the intention of Landlord and Tenant that the Fixed Rent
payable by Tenant to Landlord during the entire term of this Lease shall be as
specified in the Basic Lease Information and shall be absolutely net of all
costs and expenses incurred in connection with the management, operation,
maintenance and repair of the Premises in accordance with this Lease. After
Substantial Completion of each component of the Improvements, Landlord shall
have no obligations or liabilities whatsoever with respect to the management,
operation, maintenance or repair of such components of the Premises during the
term of this Lease, and after Substantial Completion of each component of the
Improvements, Tenant shall manage, operate, maintain and repair such component
of the Premises in accordance with this Lease and shall pay all costs and
expenses incurred in connection therewith before such costs or expenses become
delinquent. Without limiting the generality of the foregoing, throughout the
entire Term of this Lease, Tenant shall pay, as Additional Rent, after
Substantial Completion of each component of the Improvements, all premiums for
all property and liability insurance covering the such component(s) required
hereunder. Throughout the term of this Lease, Tenant shall pay all Property
Taxes (as defined in paragraph 5(a)) and all Other Taxes (as defined in
paragraph 5(b)) that accrue during or are allocable to the terms of this Lease.

         c. Subject to Landlord's exercise of its one-time right to change
payment dates as specified in paragraph (d) of the Basic Lease Information,
Tenant shall pay all Fixed Rent to Landlord, in advance, on or before the
fifteenth day of each and every calendar month during the Term of this Lease
without notice, by wire transfer or other electronic means (or otherwise so
there are collected funds available to Landlord on the due date). Interest at
the Overdue Rate shall accrue on Fixed Rent from the due date thereof to the
date of actual payment. If the Fixed Rent is paid more than five (5) days after
its due date, a late charge of five percent (5%) of the delinquent amount shall
be due and payable. Tenant shall pay all Additional Rent when due. Tenant shall
pay all Fixed Rent to Landlord without notice, demand, deduction or offset
(except as otherwise expressly set forth in this Lease), in lawful money of the
United States of America, at the address of Landlord specified in the Basic
Lease Information, or to such other person or persons or at such other place or
places as Landlord may from time to time designate in writing, provided that no
more than three such persons shall be designated at any one time.

5.       TAXES

         a. Tenant shall pay, as Additional Rent, all Property Taxes prior to
the assessment of any interest or penalty for late payment. Property Taxes shall
mean all taxes, assessments, excises, levies, fees and charges (and any tax,
assessment, excise, levy, municipal service fee, fee or charge levied wholly or
partly in lieu thereof or as a substitute therefor or as an addition thereto) of
every kind and description, general or special, ordinary or extraordinary,
foreseen or unforeseen, secured or unsecured, whether or not now customary or
within the contemplation of Landlord and Tenant, that are levied, assessed,
charged, confirmed or imposed by any public or government authority on or
against, or otherwise with respect to, the Premises or any part thereof or any
personal property used in connection with the Premises. Property Taxes shall not
include net income, estate, inheritance, succession or transfer taxes of
Landlord, unless levied or assessed against Landlord in whole or in part in lieu
of, as a substitute for, or as an addition to any Property Taxes.

                                       -9-

<PAGE>   17

         b. Tenant shall pay, as Additional Rent, all Other Taxes prior to the
assessment of any interest or penalty for late payment. Other Taxes shall mean
all taxes, assessments, excises, levies, fees and charges, including all
payments related to the cost of providing facilities or services, whether or not
now customary or within the contemplation of Landlord and Tenant, that are
levied, assessed, charged, confirmed or imposed by any public or government
authority upon, or measured by, or reasonably attributable to (i) the Premises,
(ii) the cost or value of Tenant's equipment, furniture, fixtures and other
personal property located in the Premises or the cost or value of any leasehold
improvements made in or to the Premises by or for Tenant, regardless of whether
title to such improvements is vested in Tenant or Landlord, (iii) any Rent
payable under this Lease, including any gross income tax or excise tax levied by
any public or government authority with respect to the receipt of any such Rent,
(iv) the possession, leasing, operation, management, maintenance, alteration,
repair, use or occupancy by Tenant of the Premises, or (v) this transaction or
any document to which Tenant is a party creating or transferring an interest or
an estate in the Premises. Other Taxes shall not include net income, estate,
inheritance, succession or transfer taxes of Landlord, unless levied or assessed
against Landlord in while or in part in lieu of, as a substitute for, or as an
addition to any Other Taxes.

         c. Except for any tax on the net income derived from the Fixed Rent, if
at any time during the Term, any method of taxation shall be such that there
shall be levied, assessed or imposed on the Landlord, or on the Fixed Rent or
Additional Rent, or on the Premises, or any portion thereof, a capital levy,
gross receipts tax, occupational license tax or other tax on the Rents received
therefrom, or a franchise tax, or an assessment, gross receipts levy or charge
measured by or based in whole or in part upon such gross Rents, Tenant, to the
extent permitted by law, covenants to pay and discharge the same, it being the
intention of the parties hereto that the Fixed Rent to be paid hereunder shall
be paid to Landlord absolutely net without deduction or charge of any nature
whatsoever, foreseeable or unforeseeable, ordinary or extraordinary, or of any
nature, kind, or description, except as otherwise expressly provided in this
Lease.

         d. Tenant covenants to furnish Landlord, within fifteen (15) days after
request by Landlord, official receipts of the appropriate taxing authority, if
any, or other appropriate proof reasonably satisfactory to Landlord, evidencing
the payment of the same. The certificate, advice or bill of the appropriate
official designated by law to make or issue the same or to receive payment of
any Imposition may be relied upon by Landlord as sufficient evidence that such
Imposition is due and unpaid at the time of making or issuance of such
certificate, advice or bill.

         e. Tenant shall have the right to contest the amount or validity, in
whole or in part, of any Property Tax or Other Tax or to seek a reduction in the
valuation of the Premises as assessed for real estate property tax purposes by
appropriate proceedings diligently conducted in good faith (but only after
payment of such Tax). Landlord shall not be required to join in any proceeding
referred to in this subparagraph (e) unless required by law, in which event
Landlord shall, upon written request by Tenant, join in such proceedings or
permit the same to be brought in its name. Tenant covenants that Landlord shall
not suffer or sustain any costs or expenses (including, but not limited to,
counsel fees) or any liability in connection with any such proceeding. No such
consent shall subject Landlord to any material civil liability or the risk of
any criminal liability.

                                      -10-

<PAGE>   18

         f. During the continuance of an Event of Default, upon notice from
Landlord, Tenant shall pay to Landlord on the first day of each calendar month
an amount equal to one twelfth (1/12th) of the Property Taxes and Other Taxes,
as reasonably estimated by Landlord on the basis of assessments and bills and
estimates thereof. Such amounts shall be held by Landlord or Mortgagee, and so
long as they are held by Mortgagee, they shall be held without interest, and
shall not be deemed to be trust funds and may be commingled with the general
funds of Mortgagee. If such funds are held by Landlord, they shall be held in a
separate interest bearing account with interest payable to Tenant. Landlord
shall apply such amounts to the payment of the taxes with respect to which such
amounts were paid, subject to any rights of the Mortgagee thereto. Landlord
shall make no charge for holding and applying such amounts. If at any time the
amount on deposit pursuant to this paragraph shall be less than the amount
reasonably deemed necessary by Landlord to pay such taxes as they become due,
Tenant shall pay to Landlord the amount necessary to make up the deficiency
within five (5) days after notice from Landlord requesting payment thereof.
Annually Landlord shall refund to Tenant any amount held by Landlord pursuant to
this paragraph which is not reasonably deemed necessary for the payment of
future taxes.

6.       NET LEASE; NON-TERMINABILITY

         a. This is an absolutely net lease and the Fixed Rent, Additional Rent
and all other sums payable hereunder by Tenant shall be paid without notice,
demand, set-off, counterclaim, abatement (except as otherwise expressly provided
in this Lease), suspension, deduction or defense. It is the intention of the
parties hereto that the Fixed Rent shall be an absolutely net return to Landlord
throughout the Term of this Lease. In order that such Rent shall be absolutely
net to Landlord, Tenant shall pay when due, and save Landlord harmless from and
against, any and all costs, charges and expenses attributable to the Premises,
including but not limited to, each fine, fee, penalty, charge (including
governmental charges), assessments, sewer rent, Impositions, insurance premiums
as may be required from time to time by Landlord or Mortgagee, utility expenses,
carrying charges, costs, expenses and obligations of every kind and nature
whatsoever, general and special, ordinary and extraordinary, foreseen and
unforeseen, the payment for which Landlord or Tenant is, or shall become liable
by reason of any rights or interest of Landlord or Tenant in, to or under the
Premises or this Lease or in any manner relating to the ownership, leasing,
operation, management, maintenance, repair, rebuilding use or occupation of the
Premises, or of any portion thereof; provided, however, that nothing herein
contained shall be construed as imposing upon Tenant any obligation to pay any
net income, estate, inheritance, succession or transfer tax of Landlord growing
out of, or levied in connection with, this Lease or Landlord's right or interest
in the Premises. The foregoing shall not affect Landlord's obligation to fund
the Project Budget for the costs of initial construction of the Improvements.

         b. This Lease shall not terminate, nor shall Tenant have any right to
terminate this Lease, except as expressly provided in paragraphs 9(b), 13 and
26, nor shall Tenant be entitled to any abatement or reduction of Rent
hereunder, nor shall the obligations of Tenant under this Lease be affected, by
reason of (i) any damage to or destruction of all or any part of the Premises
from whatever cause, subject to paragraph 9(b), (ii) subject to paragraph 13,
the taking of the Premises

                                      -11-

<PAGE>   19

or any portion thereof by condemnation, requisition or otherwise, (iii) the
prohibition, limitation or restriction of Tenant's use of all or any part of the
Premises, or any interference with such use, (iv) any eviction by paramount
title or otherwise, (v) Tenant's acquisition or ownership of all or any part of
the Premises otherwise than as expressly provided herein, (vi) any default on
the part of Landlord under this Lease, or under any other agreement to which
Landlord and Tenant may be parties, (vii) the failure of Landlord to deliver
possession of the Premises or (viii) any other cause whether similar or
dissimilar to the foregoing, any present or future law to the contrary
notwithstanding. It is the intention of the parties hereto that the obligations
of Tenant hereunder shall be separate and independent covenants and agreements,
that the Fixed Rent, the Additional Rent and all other sums payable by Tenant
hereunder shall continue to be payable in all events and that the obligations of
Tenant hereunder shall continue unaffected unless the requirement to pay or
perform the same shall have been terminated pursuant to any express provision of
this Lease. Tenant agrees that Tenant will not be relieved of the obligations to
pay the Basic Rent or any Additional Rent in case of damage to or destruction of
the Premises.

         c. Tenant agrees that it will remain obligated under this Lease in
accordance with its terms, and that it will not take any action to terminate,
rescind or avoid this Lease, notwithstanding (i) the bankruptcy, insolvency,
reorganization, composition, readjustment, liquidation, dissolution or
winding-up or other proceeding affecting Landlord or its successor in interest,
or (ii) any action with respect to this Lease which may be taken by any trustee
or receiver of Landlord or its successor in interest or by any court in any such
proceeding.

         d. Tenant waives all rights which may now or hereafter be conferred by
law (i) to quit, terminate or surrender this Lease or the Premises or any part
thereof, or (ii) to any abatement, suspension, deferment or reduction of the
Fixed Rent, Additional Rent or any other sums payable under this Lease, except
as otherwise expressly provided herein.

7.       SERVICES

         Prior to Substantial Completion of each component of the Improvements,
the cost of all necessary services for such undelivered component shall be
included in the Project Budget and paid as a Cost of the Project. After
Substantial Completion of each component, Tenant shall, at Tenant's sole cost
and expense, supply the completed component with electricity, heating,
ventilating and air conditioning, water, natural gas, lighting, replacement for
all lights, restroom supplies, telephone service, window washing, security
service, janitor, scavenger and disposal services (including hazardous and
biological waste disposal), and such other services as Tenant determines to
furnish to the Premises. Landlord shall not be in default hereunder or be liable
for any damage or loss directly or indirectly resulting from, nor shall the
Fixed Rent or Additional Rent be abated or a constructive or other eviction be
deemed to have occurred by reason of, the installation, use or interruption of
use of any equipment in connection with the furnishing of any of the foregoing
services, any failure to furnish or delay in furnishing any such services,
whether such failure or delay is caused by accident or any condition beyond the
control of Landlord or Tenant or by the making of repairs or improvements to the
Premises, or any limitation, curtailment, rationing or restriction on use of
water, electricity, gas or any form of energy serving the Premises, whether such
results

                                      -12-

<PAGE>   20

from mandatory governmental restriction or voluntary compliance with
governmental guidelines. Tenant shall pay the full cost of all of the foregoing
services and all other utilities and services supplied to the Premises as
Additional Rent.

8.       REPAIRS AND MAINTENANCE; REPLACEMENT

         a. Prior to Substantial Completion of each component of the
Improvements, the costs of all repairs, maintenance and replacements for such
incomplete component shall be included in the Project Budget and paid as a Cost
of the Project. After Substantial Completion of each component of the
Improvements, Tenant shall, at its own sole cost and expense, keep the such
component(s) in good order and condition as a first class office, research and
development, light manufacturing and assembly, warehouse and repair/refurbishing
facility, at all times on and after Substantial Completion of each component of
the Premises to and including the date of the termination of the Term, by lapse
of time or otherwise. Tenant shall promptly and adequately repair the Premises
and all its component parts, and replace or repair all landscaping and all
damaged or broken fixtures and appurtenances, including by not limited to,
parking lot surface and stripes, mechanical systems, electrical and lighting
systems, plumbing and sewage systems, interior and exterior walls, roof,
foundations, floor slabs, columns and structural steel so as to preserve and
protect the useful life, utility and value of such components, and in all events
so as to preserve the effectiveness of any warranty relating thereto, such
repairs and replacements to be at least equal in quality and class to the
original work. If any building system or component which is then being used
shall become obsolete or uneconomic to repair, Tenant shall remove such item
from the Premises and, promptly replace it with an item of comparable initial
value and function. Tenant shall be entitled to the obsolete or uneconomic unit
and may sell it for Tenant's own account. Promptly upon installation of any
equipment constituting a part of a building system, Tenant shall deliver to
Landlord the original warranty (which shall specify Landlord as the owner of the
equipment) relating to such equipment. Tenant shall deliver to Landlord a
written statement showing all removals and replacements of such systems or
components during the preceding calendar year, including manufacturers, model
numbers, and serial numbers. Landlord, may upon forty-eight (48) hours prior
notice cause independent private inspectors to make inspections of any building
and building systems on the Premises or segments thereof to determine Tenant's
compliance under this paragraph 8. Tenant shall be entitled to treat the cost of
any fixtures, equipment and signs provided by Tenant and not required by the
terms of this Lease as leasehold improvements; however, all such items shall be
subject to the terms of this Lease.

         Landlord shall use commercially reasonable efforts to cause the General
Contractor to comply with the terms of the Construction Contract. Landlord and
Tenant agree to cooperate in good faith regarding issues relating to the design
and construction of the Improvements. If Landlord fails, for a period of ten
(10) days after notice, to take appropriate action under any contract relating
to the Premises (other than this Lease, the Mortgage and other documents
securing the loan represented by the Mortgage) Tenant shall have the right, in
Landlord's name, to take commercially reasonable action under any such contract,
provided such action of Tenant shall not expose Landlord to any liability or
result in the loss of Landlord's rights under any such contract for which Tenant
has not indemnified Landlord and posted such security as Landlord may reasonably
request).

                                      -13-

<PAGE>   21

         Landlord may, but is not required to, after ten (10) days notice to
Tenant (except in the case of emergency, in which case Tenant shall be given
notice contemporaneously with entry), enter the Premises and make such repairs,
alterations, replacements or maintenance as Landlord reasonably deems necessary
to protect persons or property or to maintain the Improvements in accordance
with the terms of this Lease, in a diligent fashion, and Tenant shall pay
Landlord as Additional Rent forthwith upon being billed for same by Landlord the
cost thereof plus an administrative fee of five percent (5%) of such cost. Such
amounts shall bear interest at the Overdue Rate from the date of billing until
paid. The foregoing right of entry is in addition to other rights of entry by
Landlord under the terms of this Lease.

         b. It is intended by Tenant and Landlord that, after Substantial
Completion of each component of the Improvements, Landlord shall have no
obligation, in any manner whatsoever, to repair or maintain such component(s)
(or any equipment therein), whether structural or nonstructural, all of which
obligations are intended, as between Landlord and Tenant, to be those of Tenant.
Tenant expressly waives the benefit of any statute now or in the future in
effect which would otherwise afford Tenant the right to make repairs at
Landlord's expense or to terminate this Lease because of Landlord's failure to
keep the Premises in good order, condition and repair.

         c. Tenant shall maintain on the Premises, and turn over to Landlord
upon expiration or termination of this Lease, then current operating manuals for
the equipment then located on the Premises.

         d. Tenant covenants not to install any underground storage tank on the
Land.

9.       DESTRUCTION OF OR DAMAGE TO PREMISES

         a. If, after Substantial Completion of each component of the Premises,
such component or any part thereof are damaged by fire or other casualty during
the Term of this Lease, Tenant shall repair such damage and restore the Premises
to substantially the same or better condition as existed before the occurrence
of such fire or other casualty using materials of the same or better grade than
that of the materials being replaced, so that the value and utility of the
Premises (considered as unencumbered by this Lease) shall not be decreased, and
this Lease shall remain in full force and effect. Such repair and replacement by
Tenant shall be done in accordance with paragraph 22 and the standards of
paragraph 8 and Tenant shall, at its expense, obtain all permits required for
such work. An architect or engineer selected by Landlord shall review, at
Tenant's expense, all plans and specifications and all draw requests hereunder.
In no event shall Fixed Rent or Additional Rent abate, nor shall this Lease
terminate by reason of such damage or destruction. Tenant may, at its sole cost
and expense, participate with Landlord in the negotiation of the amount of the
proceeds with the insurer, but Tenant shall have no right to prevent Landlord
from agreeing to a settlement so long as the settlement will provide sufficient
funds to pay the cost the restoration work required by this paragraph. Provided
no Event of Default is continuing under this Lease, and provided Tenant has (i)
delivered to Landlord plans and specifications and a budget for such repair and
restoration (all of which Landlord shall have approved in its reasonable
judgment), and (ii) deposited with Landlord or the Proceeds Trustee hereinafter
mentioned cash in the sum equal to the excess, if any, of the total

                                      -14-

<PAGE>   22

cost set forth in such approved budget over the amount of insurance proceeds
received on account of such casualty, then Landlord shall make available to
Tenant all insurance proceeds actually received by Landlord on account of such
casualty, for application to the costs of such approved repair and restoration,
as set forth below. In lieu of the cash required by the preceding sentence,
Tenant may deposit a clean irrevocable evergreen letter of credit for an
equivalent amount drawn on a bank acceptable to Landlord and Mortgagee.

         b. If Tenant is obligated to repair and restore pursuant to paragraph
9(a), then in the event the estimated cost of reconstruction is equal to or less
than five hundred thousand dollars ($500,000), insurance proceeds (net of the
cost of collection thereof) up to such amount shall be paid over to Tenant for
the sole purpose of reconstruction. In the event the estimated cost of
reconstruction is in excess of five hundred thousand dollars ($500,000), all
insurance proceeds (net of the cost of collection thereof) shall be paid to or
deposited with either a bank or trust company designated by Landlord, subject to
the reasonable approval of Tenant (herein called the "Proceeds Trustee") in the
name of the Proceeds Trustee as trustee for Landlord and Tenant and disbursed in
the manner hereinafter provided. In the event Landlord mortgages the Premises
with a First Mortgage, the mortgagee thereunder may, at its option, be appointed
Proceeds Trustee for so long as such First Mortgage remains outstanding and such
Mortgagee does not control Landlord or is not controlled by or under common
control with Landlord. Insurance proceeds shall be deposited in an interest
bearing account and interest shall be distributed to Tenant upon completion of
said installation, repair, replacement or rebuilding, provided no Event of
Default has occurred and is continuing hereunder, and any proceeds remaining
after payment of all costs of reconstruction shall (unless an Event of Default
shall have occurred and be continuing hereunder) be paid to Tenant, unless
Mortgagee applies such remaining proceeds to the principal amount secured by the
Mortgage, in which case there shall be a credit against monthly Fixed Rent equal
to the reduction in fixed monthly debt service resulting from such application,
or, if there is no reduction in debt service, Tenant shall be paid the amount of
such remaining proceeds upon the earlier to occur of the maturity of the debt
secured by the Mortgage, the refinancing of the Mortgage or the sale of the
Premises. All checks drawn on said account shall be signed by the Proceeds
Trustee. Insurance proceeds shall be disbursed to Tenant by the Proceeds Trustee
under the following procedure:

               i. No more frequently than once per calendar month, Tenant may
request that Landlord reimburse Tenant out of such insurance proceeds for costs
incurred by Tenant for work in place to repair and restore the Premises and not
previously reimbursed and for the cost of construction materials stored on site
at the Premises. Tenant's request shall certify that all work for which
reimbursement is requested was performed in compliance with the plans and
specifications approved by Landlord pursuant to paragraph 8 and all applicable
laws, and shall include reasonably satisfactory evidence of the costs incurred
by Tenant and unconditional lien releases in form and substance required by
applicable law executed by all mechanics, materialmen, laborers, suppliers and
contractors who performed any portion of the repair work or supplied materials.

               ii. Within fifteen (15) days after receiving Tenant's request,
Landlord shall approve or disapprove Tenant's request, which approval shall not
be unreasonably withheld, delayed or conditioned by notice to Tenant. If
Landlord approves all or any portion of a request and Proceeds Trustee has
received (and not previously disbursed) insurance proceeds, then the Proceeds

                                      -15-

<PAGE>   23

Trustee shall send to or upon the written order of Tenant a check or wire
transfer in the amount approved by Landlord. If Landlord disapproves all or any
portion of a request, then Landlord's notice shall state the reasons for that
disapproval. Landlord's failure to deliver a notice approving or disapproving a
request shall be conclusively deemed Landlord's disapproval of the request.

10.      INSURANCE, HOLD HARMLESS AND INDEMNIFICATION

         a. Landlord shall not be liable to Tenant for any damage to or loss or
theft of any property or for any bodily or personal injury, illness or death of
any person in, on or about the Premises arising at any time and from any cause
whatsoever after Substantial Completion of any component of the Improvements, as
to such component. Tenant waives all claims against Landlord arising from any
liability described in this paragraph 10(a), except to the extent caused by the
gross negligence or willful misconduct of Landlord.

         b. At all times after Substantial Completion of each component of the
Improvements, as to such completed component, Tenant hereby agrees to indemnify
and defend Landlord against and hold Landlord harmless from all claims, demands,
liabilities, damages, losses, costs and expenses, including reasonable
attorneys' fees and disbursements, arising from or related to any use or
occupancy of the Premises, or any condition of the Premises, or any default in
the performance of Tenant's obligations hereunder, or any damage to any property
(including property of employees and invitees of Tenant) or any bodily or
personal injury, illness or death of any person (including employees and
invitees of Tenant) occurring in, on or about the Premises or any part thereof
or any part of the building or the land constituting a part of the Premises
arising at any time and from any cause whatsoever or occurring outside the
Premises when such damage, bodily or personal injury, illness or death is caused
by any act or omission of Tenant or its agents, officers, employees,
contractors, invitees or licensees. This paragraph 10(b) shall survive the
termination of this Lease with respect to any damage, bodily or personal injury,
illness or death occurring prior to such termination.

         c. Prior to Substantial Completion of each component of the
Improvements, as to such incomplete component, insurance premiums shall be
included in the Project Budget. From and after Substantial Completion of each
component of the Improvements, Tenant shall, at all times and during the term of
this Lease and at Tenant's sole cost and expense, obtain and keep in force
comprehensive commercial general liability and special cause of loss insurance,
including contractual liability (specifically covering this Lease), cross
liability, fire legal liability, and premises operations, all on an "occurrence"
policy form, with a minimum combined single limit in the amount of ten million
dollars ($10,000,000) per occurrence for bodily or personal injury to, illness
of, or death of persons and damage to property occurring in, on or about the
Premises, and such insurance shall name Landlord and Mortgagee as additional
insureds. Such insurance may be effected though the use of both primary and
umbrella coverage. Tenant shall, at Tenant's sole cost and expense, be
responsible for insuring Tenant's furniture, equipment, fixtures, computers,
office machines and personal property.

                                      -16-

<PAGE>   24

         d. From and after Substantial Completion of each component of the
Improvements, as to such completed component, Tenant shall thereafter, at all
times during the Term of this Lease and at Tenant's sole cost and expense,
obtain and keep in force worker's compensation and employer's liability
insurance in all states in which the Premises and any other operations of the
Tenant are located and any other state in which the Tenant or its contractors or
subcontractors may be subject to any statutory or other liability arising in any
manner whatsoever out of the actual or alleged employment of others.

         e. From and after Substantial Completion of each component of the
Improvements, as to such completed component, Tenant shall thereafter, at all
times during the Term of this Lease after Substantial Completion, at Tenant's
sole cost and expense, obtain and keep in force or reimburse Landlord for the
cost of (a) insurance against loss (including earthquake and flood if the
Premises are located in an active seismic zone or a designated flood hazard
area) or damage to the Premises by fire and all other risks of physical loss
(including earthquake and flood) covered by insurance of the type now known as
"all risk," with difference in conditions coverage, in an amount not less than
the full replacement cost of those portions of the Premises on which Landlord's
Work is complete (without deduction for depreciation), including the cost of
debris removal and such endorsements as Landlord may reasonably require, and
containing "Replacement Cost" and "Agreed Amount" endorsements; (b) boiler and
machinery insurance covering pressure vessels, air tanks, boilers, machinery,
pressure piping, heating, ventilation and air conditioning equipment, and
elevator and escalator equipment, provided the Premises contain equipment of
such nature and insurance against loss of occupancy or use arising from any
breakdown of any such items, in such amounts as Landlord may reasonably
determine; (c) business interruption insurance for not less than one year of
Fixed Rent if the Premises are destroyed or rendered untenantable by any cause
insured against (it being understood that the existence of such insurance does
not reduce Tenant's obligation to pay Fixed Rent without diminution); and (d)
insurance in amounts and against such other risks as Landlord or Mortgagee may
reasonably require and against such risks as are customarily insured against by
operators of similar properties. In addition, during any period when any
demolition or construction on the Land is underway by Tenant, Tenant shall
maintain the following insurance: (i) completed value builders risk insurance
for the Premises, including all building materials thereon, covering loss or
damage from fire, lightning, extended coverage periods, sprinkler, leakage,
vandalism, malicious mischief and perils insured in an amount not less than the
cost, as estimated by Landlord, of the construction of alterations to the
Improvements, and (ii) worker's compensation insurance covering the full
statutory liability as an employer of the contractor performing the work of such
construction or alterations. Tenant may provide any required insurance coverage
by a combination of primary, excess and umbrella policies.

         f. All insurance required to be maintained by Tenant under this
paragraph 10 and all renewals thereof shall be issued by good and responsible
companies qualified to do and doing business in the state of where the Premises
are located and having a Standard and Poor's Corporation claims paying ability
rating of at least "AA" and shall be reasonably satisfactory to Landlord. All
deductible amounts in excess of $100,000 under each such insurance policy shall
be subject to Landlord's prior written approval, which shall not be unreasonably
withheld. Each policy to be maintained by Tenant shall expressly provide that
the policy shall not be canceled or altered without thirty (30) days' prior
notice to Landlord and shall remain in effect notwithstanding any such

                                      -17-

<PAGE>   25

cancellation or alteration until such notice shall have been given to Landlord
and such period of thirty (30) days shall have expired. All insurance under this
paragraph 10 to be maintained by Tenant (other than business interruption
insurance) shall name Landlord and any other parties designated by Landlord as
an additional insured and loss payee, shall be primary and noncontributing with
any insurance which may be carried by Landlord, shall afford coverage for all
claims based on any act, omission, event or condition that occurred or arose (or
the onset of which occurred or arose) during the policy period, and shall
expressly provide that Landlord, although named as an insured, shall
nevertheless be entitled to recover under the policy for any loss, injury or
damage to Landlord. Tenant may carry such insurance under "blanket" policies,
provided such policies expressly reserve an amount of coverage for the Premises
equal to the amount required by this Lease. Upon the issuance of each such
policy to be maintained by Tenant, Tenant shall deliver each such policy or a
certified copy and a certificate thereof (Acord 27 form) to Landlord for
retention by Landlord. Upon fifteen (15) days prior notice, Landlord shall have
the right from time to time to effect insurance for the benefit of Tenant or
Landlord or both of them and all premiums paid by Landlord shall be payable by
Tenant as Additional Rent on demand. Tenant shall pay to Landlord, immediately
upon demand all costs incurred by Landlord to obtain and maintain in effect the
policies of insurance required under this paragraph 10 or otherwise required by
Landlord.

         g. Tenant waives on behalf of all insurers under all policies of
property, liability and other insurance (excluding workers' compensation) now or
hereafter carried by Tenant insuring or covering the Premises, or any portion or
any contents thereof, or any operations therein, all rights of subrogation which
any insurer might otherwise, if at all, have to any claims of Tenant against
Landlord. Landlord waives on behalf of all insurers under all policies of
property, liability and other insurance (excluding workers' compensation) now or
hereafter carried by Landlord insuring or covering the Premises or any portion
or any contents thereof, or any operations therein, all rights of subrogation
which any insurer might otherwise, if at all, have to any claims of Landlord
against Tenant. Tenant shall, prior to or immediately after the date of this
Lease, procure from each of the insurers under all policies of property,
liability and other insurance (excluding workers' compensation) now or hereafter
carried by Tenant insuring or covering the Premises, or any portion or any
contents thereof, or any operations therein, a waiver of all rights of
subrogation which the insurer might otherwise, if at all, have to any claims of
Tenant against Landlord as required by this paragraph 10(g). Tenant shall have
the right to adjust losses under all policies of property insurance required by
this Lease and Landlord shall have the right to participate in such process. If
Tenant fails to adjust losses in a diligent manner, Landlord may, upon two (2)
business days notice assume control of the adjustment process.

         h. During the continuance of an Event of Default, upon notice from
Landlord, Tenant shall pay to Landlord on the first day of each calendar month
an amount equal to one twelfth (1/12th) of the premiums for the insurance
required by this paragraph 10, as reasonably estimated by Landlord on the basis
of bills and estimates thereof. Such amounts shall be held by Landlord or
Mortgagee, and if held by Mortgagee, such funds shall be held without interest,
and shall not be deemed to be trust funds and may be commingled with the general
funds of Mortgagee. If such funds are held by Landlord, they shall be deemed to
be trust funds and shall be held in a separate interest bearing account with
interest payable to Tenant. Landlord shall apply such amounts to the payment of
the insurance premiums with respect to which such amounts were paid, subject to
any rights of the

                                      -18-

<PAGE>   26

Mortgagee thereto. Landlord shall make no charge for holding and applying such
amounts. If at any time the amount on deposit pursuant to this paragraph shall
be less than the amount deemed necessary by Landlord to pay such premiums as
they become due, Tenant shall pay to Landlord the amount necessary to make the
deficiency within five (5) days after notice from Landlord requesting payment
thereof. Upon the expiration or termination of the term of this Lease (other
than as a result of an Event of Default), Landlord shall promptly refund to
Tenant any amount held by Landlord pursuant to this paragraph.

11.      COMPLIANCE WITH LAWS, COVENANTS

         Tenant shall, after Substantial Completion of each component of the
Improvements, as to such completed component, and thereafter throughout the Term
promptly comply or cause compliance with or remove or cure any violation of any
and all present and future laws, including, without limitation, the Americans
with Disabilities Act of 1990, as the same may be amended from time to time,
ordinances (zoning or otherwise), orders, rules, regulations and requirements of
all Federal, State, municipal and other governmental bodies having jurisdiction
over the Premises and the appropriate departments, commissions, boards and
officers thereof, and the orders, rules and regulations of the Board of Fire
Underwriters where the Premises are situated, or any other body now or hereafter
constituted exercising lawful or valid authority over the Premises, or any
portion thereof, or the sidewalks, curbs, roadways, alleys or entrances adjacent
or appurtenant thereto, or exercising authority with respect to the use or
manner of use of the Premises, or such adjacent or appurtenant facilities, and
whether the compliance, curing or removal of any such violation and the costs
and expenses necessitated thereby shall have been foreseen or unforeseen,
ordinary or extraordinary, and whether or not the same shall be presently within
the contemplation of Landlord or Tenant or shall involve any change in
governmental policy, or require structural or extraordinary repairs, alterations
or additions by Tenant and irrespective of the amount of the costs thereof. From
and after Substantial Completion of each component of the Improvements, as to
such completed component(s),Tenant, at its sole cost and expense, shall comply
with all agreements, contracts, easements, restrictions, reservations or
covenants, if any, running with the land, or hereafter created by Tenant or
consented to by Tenant or requested by Tenant and Tenant shall also comply with,
observe and perform all provisions and requirements of all policies of insurance
at any time in force with respect to the Premises and required to be obtained
and maintained under the terms of paragraph 10 hereof and shall comply with all
development permits issued by governmental authorities issued in connection with
development of the Premises. Tenant shall have the right, upon notice to
Landlord, to contest at its sole cost and expense the validity or applicability
of any law, order, rule or regulation, provided such contest shall not create
any civil or criminal liability of Landlord or create any lien on the Premises
or the Fixed Rent.

         If Tenant shall at any time fail to pay any Imposition in accordance
with the provisions of paragraphs 5 or 25, or to take out, pay for, maintain and
deliver any of the insurance policies or certificates of insurance provided for
in paragraph 10, or shall fail to make any other payment or perform any other
act on its part to be made or performed hereunder (other than acts subject to
cure pursuant to paragraph 8(a)) , then Landlord, after five (5) days prior
notice to Tenant (or with only contemporaneous oral notice in situations where
Landlord reasonably determines that delay is likely

                                      -19-

<PAGE>   27

to cause harm to Landlord's interest in the Premises), and without waiving or
releasing Tenant from any obligation of Tenant contained in this Lease, may, but
shall be under no obligation to do so,

               i. pay any Imposition payable by Tenant pursuant to this Lease;

               ii. take out, pay for and maintain any of the insurance policies
provided for in paragraph 10; or

               iii. make any other payment or perform any other act on Tenant's
part to be paid or performed hereunder, except that any time permitted to Tenant
to perform any act required by this paragraph shall be extended for such period
as may be necessary to effectuate such performance, provided Tenant is
continuously, diligently and in good faith prosecuting such performance.

         Landlord may enter upon the Premises for any such purpose and take all
such action therein or thereon as may be necessary therefor. All sums,
reasonable under the circumstances, actually so paid by Landlord and all costs
and expenses, including reasonable attorneys' fees, incurred by Landlord in
connection with the performance of any such act, together with interest thereon
at the Overdue Rate and an administrative fee equal to 5% of all such costs and
expenses, shall be paid by Tenant to Landlord on demand and submission of
reasonable evidence of such expenditures. Landlord shall not be limited in the
proof of any damages which Landlord may claim against Tenant arising out of or
by reason of Tenant's failure to provide and keep in force insurance as
aforesaid, to the amount of the insurance premium or premiums not paid or
incurred by Tenant, and which would have been payable upon such insurance, but
Landlord shall also be entitled to recover, as damages for such breach, the
uninsured amount of any loss, damages, costs and expenses of suit, including
reasonable attorney's fees, suffered or incurred by reason of damage to or
destruction of the Premises, or any portion thereof or other damage or loss
which Tenant is required to insure against hereunder, occurring during any
period when Tenant shall have failed or neglected to provide insurance as
aforesaid.

12.      PARTIAL TAKING

                                      -20-
<PAGE>   28

         If less than substantially all of the office building component or the
warehouse component of the Improvements or the related Land shall be taken or
either component is temporarily taken for public or quasi-public purposes on or
after Substantial Completion of any component of the Improvements, Tenant will
promptly, at its sole cost and expense, restore, repair, replace or rebuild the
affected component(s) so taken in conformity with the requirements of paragraphs
8 and 22 as nearly as practicable to the condition, size, quality of workmanship
and market value thereof immediately prior to such taking, without regard to the
adequacy of any condemnation award for such purpose. There shall be no abatement
of Rent during such period of restoration. Tenant may, at its sole cost and
expense, participate with Landlord in the negotiation of the amount of the award
with the condemning authority, but Tenant shall have no right to prevent
Landlord from agreeing to a settlement so long as the settlement will provide
sufficient funds to pay the cost of the restoration work required by this
paragraph. In performing its obligations, Tenant shall be entitled to all
condemnation proceeds available to Landlord under the same terms and conditions
for disbursement set forth for casualty proceeds in paragraph 9 hereof. Tenant
shall, at its sole cost and expense, negotiate and, if necessary, litigate, the
amount of the award, and Landlord shall have the right to participate in such
process, and if Tenant fails to diligently prosecute such efforts, Landlord may
take control of the process. Any condemnation proceeds in excess of the amounts
as are made available to Tenant for restoration or repair of the Premises and
the cost of collection thereof, shall be the sole and exclusive property of
Landlord. Tenant shall have the right to participate in condemnation proceedings
with Landlord, and shall be entitled to receive any award made by the condemning
authority in respect of business loss or, if available, business relocation and
any other claim permitted by law which does not, in any such case, diminish
Landlord's recovery. After receipt of Landlord of any condemnation proceeds not
required for the restoration of the Premises or the cost of collection thereof,
Fixed Rent shall be reduced dollar-for-dollar by the amount of any reduction in
debt service on the First Mortgage occasioned by the prepayment resulting from
such condemnation proceeds. Landlord agrees to use commercially reasonable
efforts to cause its lenders to agree to reamortize their loans after
application of condemnation awards, rather than apply such awards in the inverse
order of loan payments. If there is no reduction in debt service as a result of
such application by Mortgagee, Tenant shall receive an amount equal to the
amount so applied by Mortgage upon the earlier to occur of the refinancing of
the Mortgage or the sale of the Premises.

13.      SUBSTANTIAL TAKING

         If all or substantially all of either or both of the office building
component or the warehouse component(s) of the Improvements or the related Land
shall be taken for public or quasi-public purposes after Substantial Completion
of either such component, and if Tenant determines that such event has rendered
the either or both of such components unavailable for use or unsuitable for
restoration for continued use and occupancy in Tenant's business, then Tenant,
in lieu of rebuilding as contemplated by Paragraph 12, shall, not later than
ninety (90) days after such occurrence, deliver to Landlord (i) notice of its
intention to terminate this Lease as to the affected component on a date
occurring not more than ninety-five (95) days nor less than sixty (60) days
after such notice (the "Termination Date"), (ii) a certificate by the president
or a vice president of Tenant describing the event giving rise to such
termination, stating that such event has rendered the affected component
unavailable for use or unsuitable for restoration for continued use and
occupancy in Tenant's business and that such termination will not violate any
operating agreement or covenant then in

                                      -21-

<PAGE>   29

effect, and (iii) an irrevocable offer to purchase any remaining portion of the
affected component and the related condemnation award at a price equal) 35% of
the Offer Amount in the case of the office building component and 65% of the
Offer Amount in the case of the warehouse component, plus in either case any
prepayment premium or breakage fees charged by Mortgagee. Landlord shall accept
or reject such offer by notice given to Tenant not later than thirty (30) days
after receipt of Tenant's notice, and if Landlord fails to act, it shall be
deemed to have accepted the offer. If Landlord shall have accepted such offer or
is deemed to have accepted such offer, on the Termination Date, Landlord shall
convey by quitclaim deed to Tenant any remaining portion of the affected
component free of liens and encumbrances (except those existing on the
Commencement Date, exclusive of the Mortgage, or thereafter created with the
written consent of the Tenant), along with the right to receive any condemnation
award to which Landlord is entitled. If Landlord rejects such offer, this Lease
shall terminate as to the affected component on the Termination Date except for
liabilities which accrued prior thereto. Upon completion of such sale (if
applicable) and in all events upon the payment of all Fixed Rent and Additional
Rent payable through the Termination Date, this Lease shall terminate as to the
affected component on the Termination Date, except with respect to liabilities
which arose on or prior to the Termination Date. If any subdivision, lot split
or similar procedure is required in order for Landlord to comply with this
paragraph, the Termination Date shall be postponed until completion of such
procedure, and all costs associated with such procedure shall be paid by Tenant.
After the Termination Date, this Lease shall continue in full force and effect
with respect to the building component unaffected by such taking or notice of
taking.

14.      DEFAULT:   EVENTS OF DEFAULT

         The occurrence of any one or more of the following events ("Event of
Default") shall constitute a breach of this Lease by Tenant:

         a. Tenant fails to pay any Fixed Rent as and when such Fixed Rent
becomes due, and such failure continues for five (5) days after notice thereof;
or

         b. Tenant fails to pay any Additional Rent as and when such Additional
Rent becomes due and payable and such failure continues for more than ten (10)
days after Landlord gives notice thereof to Tenant; or

         c. Tenant fails to (i) cause any lien to be removed or bonded against
in accordance with paragraph 20 hereof or (ii) deliver evidence of the insurance
coverage required to be maintained pursuant to paragraph 10 hereof, and such
failure continues for a period of five (5) business days after Tenant receives
notice thereof; or

         d. Tenant fails to perform or breaches any other agreement or covenant
of this Lease to be performed or observed by Tenant as and when performance or
observance is due and such failure or breach continues for more than thirty (30)
days after Landlord's giving notice thereof to Tenant; provided, however, that
if, by the nature of such agreement or covenant, such failure or breach cannot
reasonably be cured within such period of thirty (30) days (it being agreed that
the agreements and covenants of paragraph 24 are not subject to this proviso),
an Event of Default shall not exist as long as Tenant commences with due
diligence and dispatch the curing of such failure

                                      -22-

<PAGE>   30

or breach within such period of thirty (30) days and, having so commenced,
thereafter prosecutes with diligence and dispatch and completes the curing of
such failure or breach within a reasonable time not to exceed one hundred eighty
(180) days; or

         e. Tenant (i) files, or consents by answer or otherwise to the filing
against it of, a petition for relief or reorganization or arrangement or any
other petition in bankruptcy or for liquidation or to take advantage of any
bankruptcy, insolvency or other debtors' relief law of any jurisdiction, (ii)
makes an assignment for the benefit of its creditors, (iii) consents to the
appointment of a custodian, receiver, trustee or other officer with similar
powers of Tenant or of any substantial part of Tenant's property, or (iv) takes
action for the purpose of any of the foregoing; or

         f. A court or government authority enters an order, and such order is
not vacated within ninety (90) days, (i) appointing a custodian, receiver,
trustee or other officer with similar powers with respect to Tenant or with
respect to any substantial part of Tenant's property, or (ii) constituting an
order for relief or approving a petition for relief or reorganization or
arrangement or any other petition in bankruptcy, insolvency or other debtors'
relief law of any jurisdiction, or (iii) ordering the dissolution, winding-up or
liquidation of Tenant;

         g. An event of default shall occur under any loan agreement or
indenture of Tenant securing an amount in excess of five million dollars
($5,000,000) and the lender(s) thereunder have accelerated the maturity of the
debt secured thereby;

         h. Tenant shall abandon the Premises and such abandonment shall
continue for thirty (30) consecutive days (provided, that if Tenant gives
Landlord notice of its vacating the Premises, Landlord will give notice to
Tenant of the acts or omissions constituting abandonment of the Premises, in
which case Tenant shall have ten (10) days to cure such deficiencies provided,
however, that if, by their nature such deficiencies cannot reasonably be cured
within such period of ten (10) days, an Event of Default shall not exist as long
as Tenant commences with due diligence and dispatch the curing of such
deficiencies within such period of ten (10) days and, having so commenced,
thereafter prosecutes with diligence and dispatch and completes the curing of
such deficiencies within a reasonable time not to exceed one hundred eighty
(180) days ), or the Premises are vacant and remain vacant for a period of one
hundred eighty (180) days (other than incident to remodeling or any casualty or
taking) unless Tenant is using diligent efforts to assign this Lease or sublet
the Premises (in each case to the extent permitted hereunder), as evidenced by
engaging a recognized commercial real estate broker or undertaking other action
clearly demonstrating meaningful effort to so assign this Lease or sublet the
Premises.

         i. If, as of the time when the same shall have been made, any
representation or warranty of Tenant set forth herein or in any consent, notice,
certificate, demand, request or other instrument delivered by or on behalf of
Tenant in connection with or pursuant to this Lease, the Construction Contract
or any of the Construction Loan Documents or the transactions contemplated
hereby or thereby shall prove to have been incorrect or misleading in any
material respect when made;

                                      -23-

<PAGE>   31

         j. Any judgment or order for the payment of money in excess of one
hundred thousand ($100,000) shall be rendered against Tenant and not paid within
thirty (30) days after the right to appeal shall have expired; and

         k. This Lease or any estate of Tenant hereunder is levied upon under
any execution and such attachment or execution is not vacated within thirty (30)
days.

         Landlord may treat the occurrence of any one or more of the foregoing
Events of Default as a breach of this Lease. For so long as such Event of
Default continues, Landlord, at its option and with or without further notice or
demand of any kind to Tenant or any other person, may have any one or more of
the remedies provided in this Lease, in addition to all other remedies and
rights provided at law or in equity.

15.      REMEDIES

         In the event of any Event of Default, Landlord may, in addition to, and
not in derogation of any remedies for any preceding breach, with or without
notice of demand (except as otherwise expressly provided herein) and without
limiting Landlord in the exercise of any right or remedy which Landlord may have
by reason of such Event of Default:

         a. Landlord shall have the right at any time to give a termination
notice to Tenant and, on the date specified in such notice, Tenant's right to
possession shall terminate and this Lease shall terminate. Upon such
termination, Landlord shall have the right to recover from Tenant:

               i. The worth at the time of determination of all unpaid Rent
which had been earned at the time of termination;

               ii. The worth at the time of determination of the amount of all
unpaid Rent for the balance of the term of this Lease after the time of
determination less the worth at the time of determination of the net amount, if
any, which Tenant proves could reasonably have been earned from the Premises for
such period (whether or not Landlord has attempted to mitigate damages); and

               iii. All other amounts necessary to compensate Landlord for all
the detriment proximately caused by Tenant's failure to perform all of Tenant's
obligations under this Lease or which in the ordinary course of things would be
likely to result therefrom (including, for example, costs of collection, costs
of reletting, including brokerage commissions and tenant finish costs, and
similar real estate-related damages, but excluding remote or speculative
damages). The "worth at the time of determination" of the amounts referred to in
clause (i) above shall be computed by allowing interest at the Overdue Rate. The
"worth at the time of determination" of the amount referred to in clause (ii)
above shall be computed by discounting such amount at eight percent (8%) per
annum. For the purpose of determining unpaid Rent under clause (i) and (ii)
above, the Rent reserved in this Lease shall be deemed to be the total Rent
payable by Tenant under paragraph 4 hereof.

                                      -24-

<PAGE>   32

         b. Even though Tenant has breached this Lease, this Lease shall
continue in effect for so long as Landlord does not terminate Tenant's right to
possession, and Landlord shall have the right to enforce all its rights and
remedies under this Lease, including the right to recover all Rent as it becomes
due under this Lease. Acts of maintenance or preservation or efforts to relet
the Premises or the appointment of a receiver upon initiative of Landlord to
protect Landlord's interest under this Lease shall not constitute a termination
of Tenant's right to possession unless notice of termination is given by
Landlord to Tenant. Landlord shall have unrestricted rights of entry for such
purposes following an Event of Default. Landlord shall be entitled to an
administrative fee of five percent (5%) of all amounts expended under this
paragraph 15.

         c. All agreements and covenants to be performed or observed by Tenant
under this Lease shall be at Tenant's sole cost and expense and without any
abatement of Fixed Rent or Additional Rent. If Tenant fails to pay any sum of
money to be paid by Tenant or to perform any other act to be performed by Tenant
under this Lease as and when due or required to be performed, Landlord shall
have the right, but shall not be obligated, and without waiving or releasing
Tenant from any obligations of Tenant, to make any such payment or to perform
any such other act on behalf of Tenant in accordance with this Lease, upon ten
(10) days notice to Tenant (except in the case of emergencies, in which case no
advance notice is required). All sums so paid by Landlord and all necessary
incidental costs plus an administrative fee equal to five percent (5%) of such
sum shall be deemed Additional Rent hereunder and shall be payable by Tenant to
Landlord on demand, together with interest on all such sums from the date of
expenditure by Landlord to the date of repayment by Tenant at the Overdue Rate.
Landlord shall have, in addition to all other rights and remedies of Landlord,
the same rights and remedies in the event of the nonpayment of such sums (plus
interest at the Overdue Rate) by Tenant as in the case of default by Tenant in
the payment of Rent.

         d. (i) Prior to Final Completion of all of the Improvements, Landlord
may elect, as its exclusive remedy for an Event of Default hereunder caused by
Tenant's fraud, illegal acts, misapplication of funds, bankruptcy or other
willful misconduct, to charge Tenant a fee (which Tenant hereby agrees to pay
upon request during the continuance of an Event of Default) equal to the Offer
Amount, or, as Landlord's exclusive remedy for any other Event of Default, to
charge Tenant a fee (which Tenant hereby agrees to pay upon request during the
continuance of such Event of Default, equal to eighty-nine and nine tenths
percent (89.9%) of the Cost of the Project to Date as determined in accordance
with generally accepted accounting principles, less the sum of any Additional
Rent or other non-reimbursed payments previously made by Tenant. Upon payment of
such fee, this Lease shall terminate and neither Landlord nor Tenant shall
thereafter have any obligation to the other by reason of this Lease.

(ii) After Final Completion of all of the Improvements, the occurrence of an
Event of Default shall constitute an irrevocable offer by Tenant to purchase the
Property for a price equal to the greater of (x) the Offer Amount plus any
prepayment premium or breakage fee charged by Landlord's Mortgagee, or (y) the
present value of the remaining payments of Fixed Rent for the balance of the
then current term, discounted to present worth using a discount rate of ten
percent (10%) per annum. If Landlord accepts such offer by notice given within
ninety (90) days after the occurrence of the Event of Default, Landlord shall
convey its interest in the Property to Tenant as provided in paragraph 13 at a
closing held within thirty (30) days of such acceptance notice against payment
of

                                      -25-

<PAGE>   33

the purchase price by Tenant. Unless Landlord shall have accepted such offer as
herein provided, such offer shall be deemed to be rejected and this Lease shall
continue, subject to termination as otherwise provided in this paragraph 15.

         e. If Tenant abandons or surrenders the Premises, or is dispossessed by
process of law or otherwise, any movable furniture, equipment, trade fixtures or
personal property belonging to Tenant and left in the Premises shall be deemed
to be abandoned, at the option of Landlord, and Landlord shall have the right to
sell or otherwise dispose of such personal property in any commercially
reasonable manner. If Tenant abandons the Premises, Landlord shall have the
right, but not the obligation, to sublet the Premises on reasonable terms for
the account of Tenant, and Tenant shall be liable for all costs of such
subletting, including without limitation the cost of preparing the Premises for
subtenants and normal and customary leasing commissions paid to brokers. The net
profit from any such subletting shall be applied toward the damages that Tenant
then owes hereunder.

         f. In addition to the aforementioned remedies available to Landlord, if
the Event of Default arises from Tenant's failure to comply with its obligations
under any term of provision of paragraph 20(a) of this Lease, then Landlord
shall be entitled to exercise any or all of the following remedies, either
singly or cumulatively:

               i. Increase Fixed Rent by the greater of (i) twelve and one half
percent (12.5%) of any moneys paid by Landlord in connection with such Event of
Default, or (ii) the amount by which Landlord's mortgage financing costs
increase as a result of such Event of Default;

               ii. Demand immediate payment of all sums due in connection with
such Event of Default, together with an administrative fee of five percent (5%)
of such amount, plus interest thereon at the Overdue Rate until paid; and

               iii. Recover from Tenant all other damages and expenses that
Landlord may have sustained by reason of such Event of Default, including,
without limitation, reasonable costs and expenses incurred in the completion of
the Tenant's Work by either Lender or Landlord, and reasonable attorneys' fees
and expenses, which damages and expenses shall be paid by Tenant as they are
incurred by Landlord or Lender, respectively, together with an administrative
fee of five percent (5%), plus interest thereon at the Overdue Rate until paid.
The administrative fee shall not be payable with respect to legal fees incurred
by Landlord.

                                      -26-

<PAGE>   34

16.      SUBORDINATION

         a. SUBORDINATION, NON-DISTURBANCE. Tenant agrees at any time hereafter,
and from time to time within twenty (20) days of request of Landlord, to execute
and deliver to Landlord a commercially reasonable instrument subjecting and
subordinating this Lease to the lien of any mortgage, deed of trust, security
instrument, ground or underlying lease or other document of like nature
(hereinafter collectively referred to as "Superior Mortgage") which at any time
may be placed upon the Premises, or any portion thereof, by Landlord, and to any
replacements, renewals, amendments, consolidations, modifications, extensions or
refinancing thereof, and to each and every advance made under any Superior
Mortgage. Such instrument shall require that all insurance proceeds and
condemnation awards shall be applied as provided in this Lease. It is agreed,
nevertheless, that so long as there exists no Event of Default, such
subordination agreement or other instrument, release or document (herein
"Subordination Agreement") shall not interfere with, hinder or reduce Tenant's
right to quiet enjoyment under this Lease, nor the right of Tenant to continue
to occupy the Premises, and all portions thereof, and to conduct its business
thereon in accordance with the covenants, conditions, provisions, terms and
agreements of this Lease. The costs of preparing and recording such document
shall be borne by Landlord, but Tenant shall be responsible for its own counsel
fees.

         b. MORTGAGEE PROTECTION CLAUSE. In the event of any act or omission of
Landlord constituting a default by Landlord, Tenant shall not exercise any
remedy until Tenant has given Landlord and any Mortgagee of the Premises notice
of such act or omission, and until a reasonable period of time (not less than
ten (10) business days) to allow Landlord or the Mortgagee to remedy such act or
omission. However, if such act or omission cannot, with due diligence and in
good faith, be remedied within such period or cannot be cured simply by the
payment of money, the Landlord and the Mortgagee shall be allowed such further
period of time as may be reasonably necessary provided that it commences
remedying the same with due diligence and in good faith and thereafter
diligently prosecutes such cure, provided such cure period shall not extend
beyond two hundred seventy (270) days after the notice of such default. Nothing
herein contained shall be construed or interpreted as requiring any Mortgagee
receiving such notice to remedy such act or omission.

         c. ATTORNMENT. If any Mortgagee shall succeed to the rights of Landlord
under this Lease or to ownership of the Premises, whether through possession or
foreclosure or the delivery of a deed to the Premises in lieu of foreclosure,
then such Mortgagee shall automatically be deemed to have recognized this Lease
and to assume the obligations of Landlord hereunder accruing on and after the
date such Mortgagee acquired title to the Premises, and Tenant shall attorn to
and recognize such Mortgagee as Tenant's landlord under this Lease and shall
promptly execute and deliver any instrument that such Mortgagee may reasonably
request to evidence such attornment (whether before or after the making of the
Mortgage). In the event of any other transfer of Landlord's interest hereunder,
such transferee shall automatically be deemed to have recognized this Lease and
to assume the obligations of Landlord hereunder accruing on and after the date
of such transfer, Tenant shall attorn to and recognize such transferee as
Tenant's landlord under this Lease and shall promptly execute and deliver any
instrument that such transferee and Landlord may reasonably request to evidence
such attornment.

                                      -27-

<PAGE>   35

         d. CONSENT TO ASSIGNMENT. Upon ten (10) days' advance notice, Tenant
agrees to execute, acknowledge and deliver a document consenting to the
assignment by Landlord of this Lease to a Mortgagee, in a form then customary
after negotiation with institutional lenders, with such changes therein as may
be reasonably requested by the Mortgagee which shall not adversely affect any
significant right of Tenant under this Lease or increase Tenant's obligations
under this lease in any material respect.

17.      LANDLORD'S RIGHT OF ENTRY

         Landlord, Mortgagee and their respective designees shall have the right
to enter the Premises at any time during normal business hours and any part of
the Premises on two (2) days advance notice and to inspect the same, post
notices of non-responsibility, monitor construction, perform appraisals, perform
environmental site assessments and engineering studies, exhibit the Premises to
prospective purchasers and mortgagees, and examine Tenant's books and records
pertaining to the Premises, insurance policies, certificates of occupancy and
other documents, records and permits in Tenant's possession with respect to the
Premises, all of which shall be customary and adequate and reasonably
satisfactory to Landlord. Landlord shall use reasonable efforts to minimize the
interference with Tenant's business during any such entry, and shall repair any
damage caused by Landlord during any such entry.

18.      NOTICES

         Notices, statements, demands, or other communications required or
permitted to be given, rendered or made by either party to the other pursuant to
this Lease or pursuant to any applicable law or requirement of public authority,
shall be in writing (whether or not so stated elsewhere in this Lease) and shall
be deemed to have been properly given, rendered or made, when received by
overnight delivery or overnight courier (of if such delivery is refused) or
facsimile transmission with a confirmation copy sent by overnight delivery or by
overnight courier delivery addressed to the other parties as follows:

                                      -28-

<PAGE>   36

             To Landlord:  ACRE HPC, LLC
                           c/o American Corporate Real Estate, LLC
                           800 Third Avenue, 40th Floor
                           New York, New York  10022
                           Attention:      Barclay G. Jones, III

       With a copy to:     ACRE HPC, LLC
                           c/o American Corporate Real Estate LLC
                           One Financial Center, 29th Floor
                           Boston, Massachusetts 02111
                           Attention: R. Michael Dorsch, III

       With a copy to:     ACRE HPC, LLC
                           c/o William E. Simon & Sons Realty, L.L.C.
                           10990 Wilshire Boulevard, Suite 500
                           Los Angeles, California 90024
                           Attention: Philip T. Fitzgerald

       With a copy to:     Day, Berry & Howard LLP
                           260 Franklin Street
                           Boston, Massachusetts 02110
                           Attention:   Lewis A. Burleigh, Esq.

       To Tenant:          The Holmes Group, Inc.
                           233 Fortune Boulevard
                           Milford, Massachusetts 01757
                           Attention: Ira B. Morgenstern, Senior Vice President

       With a copy to:     Posternak, Blankstein & Lund, L.L.P.
                           100 Charles River Plaza
                           Boston, Massachusetts 02114
                           Attention: Donald H. Siegel, P.C.

       With a copy to:     The Holmes Group, Inc.
                           233 Fortune Boulevard
                           Milford, Massachusetts 01757
                           Attention: Paul Izzo, Esq., General Counsel

         Any party listed in this paragraph 18 may, by notices as aforesaid,
designate a different address for addresses for notice, statements, demands or
other communications intended for it.

                                      -29-

<PAGE>   37

19.      ESTOPPEL CERTIFICATES; FINANCIAL DATA

         a. At any time and from time to time, Tenant shall, within twenty (20)
days after written request by Landlord, execute, acknowledge and deliver to
Landlord a certificate certifying: (a) that this Lease is unmodified and in full
force and effect (or, if there have been modifications, that this Lease is in
full force and effect as modified, and stating the date and nature of each
modification); (b) the Commencement Date and the Expiration Date determined in
accordance with paragraph 3 and the date, if any, to which all Rent and other
sums payable hereunder have been paid; (c) the amount of Fixed Rent currently
payable monthly, (d) that no notice has been received by Tenant of any default
by Tenant hereunder which has not been cured, except as to defaults specified in
such certificate; (e) to the best of Tenant's knowledge, that Landlord is not in
default under this Lease, except as to defaults specified in such certificate;
and (f) to the best of Tenant's knowledge, such other matters as may be
reasonably requested by Landlord or any actual or prospective purchaser or
mortgage lender. Any such certificate may be relied upon by Landlord and any
actual or prospective purchaser or mortgage lender of the Premises or any part
thereof.

         At any time and from time to time, Landlord shall, within twenty (20)
days after written request by Tenant, execute, acknowledge and deliver to Tenant
a certificate certifying: (a) that this Lease is unmodified and in full force
and effect (or, if there have been modifications, that this Lease is in full
force and effect as modified, and stating the date and nature of each
modification); (b) the Commencement Date and the Expiration Date determined in
accordance with paragraph 3 and the date, if any, to which Fixed Rent and other
sums payable hereunder have been paid; (c) the amount of Fixed Rent currently
payable monthly, (d) that no notice has been received by Landlord of any default
by Landlord hereunder which has not been cured, except as to defaults specified
in such certificate; (e) to the best of Landlord's knowledge, that Tenant is not
in default under this Lease, except as to defaults specified in such
certificate; and (f) to the best of Landlord's knowledge, such other matters as
may be reasonably requested by Tenant. Any such certificate may be relied upon
by Tenant and any permitted assignee of Tenant.

                                      -30-

<PAGE>   38

         b. Tenant shall deliver to Landlord and to any lender or purchaser
designated by Landlord the following information: within ninety (90) days after
the end of each fiscal year of Tenant, an audited balance sheet of Tenant and
its consolidated subsidiaries as at the end of such year, an audited statement
of profits and losses of Tenant and its consolidated subsidiaries for such year,
and an audited statement of cash flows of Tenant and its consolidated
subsidiaries for such year, setting forth in each case, in comparative form, the
corresponding figures for the preceding fiscal year in reasonable detail and
scope and certified by independent certified public accountants of recognized
national standing selected by Tenant; and within forty-five (45) days after the
end of each of the first three fiscal quarters of Tenant a balance sheet of
Tenant and its consolidated subsidiaries as at the end of such quarter,
statements of profits and losses of Tenant and its consolidated subsidiaries for
such quarter and a statement of cash flows of Tenant and its consolidated
subsidiaries for such quarter, setting forth in each case, in comparative form,
the corresponding figures for the similar quarter of the preceding year, in
reasonable detail and scope, and certified to be true and complete by a
financial officer of Tenant having knowledge thereof, subject to year-end
adjustment; the foregoing financial statements all being prepared in accordance
with generally accepted accounting principles, consistently applied. So long as
Tenant is a reporting company under the Securities and Exchange Act of 1934, as
amended, the foregoing requirements of this paragraph 19(b) will be satisfied by
the delivery of Tenant's Forms 10-K, 10-Q and annual reports promptly upon their
filing with the Securities and Exchange Commission. Together with the annual
financial statements described above, Tenant shall upon request by Landlord, not
more than once in a calendar year, deliver to Landlord an annual operating
statement of the Property in detail reasonably satisfactory to Landlord and
certified to be true, complete and correct by an officer of Tenant. Landlord
agrees to take reasonable steps to assure that any information designated by
Tenant as "non-public" will be kept confidential.

         c. Upon ten (10) days' prior notice, Tenant will permit Landlord and
its professional representatives to visit Tenant's offices, and discuss Tenant's
affairs and finances with appropriate officers, and will make available such
information as Landlord may reasonably request bearing on the Tenant, the
Premises or this Lease, provided that Landlord shall agree to maintain the
confidentiality of any information reasonably designated by Tenant as
"nonpublic".

20.      MECHANICS'  LIENS

                                      -31-

<PAGE>   39

         a. Except for liens created through the act of Landlord or its agents,
Tenant shall not suffer or permit any mechanic's lien or other lien to be filed
or recorded for more than thirty (30) days against the Premises, equipment or
materials supplied or claimed to have been supplied to the Premises at the
request of Tenant, or anyone holding the Premises, or any portion thereof,
through or under Tenant. If any such mechanic's lien or other lien shall at any
time be filed or recorded against the Premises, or any portion thereof, Tenant
shall cause the same to be discharged of record within thirty (30) days after
the date of filing or recording of the same. However, in the event Tenant
desires to contest the validity of any lien it shall (i) on or before thirty
(30) days prior to the due date thereof (but in no event later than thirty (30)
days after the filing or recording thereof), notify Landlord, in writing, that
Tenant intends to so contest same; (ii) on or before the due date thereof, if
such lien involves an amount in excess of fifty thousand dollars ($50,000) or if
any Mortgagee so requires, bond over such lien or deposit with Landlord or the
title company insuring over such lien, security (in form and content reasonably
satisfactory to Landlord or Mortgagee) for the payment of the full amount of
such lien, and from time to time deposit additional security so that, at all
times, adequate security will be available for the payment of the full amount of
the lien together with all interest, penalties, costs and other charges in
respect thereof. An unconditional title insurance endorsement issued by Fidelity
National Title Insurance Company insuring Landlord and Mortgagee against loss by
reason of any such lien shall be deemed to be adequate security. For purposes of
this paragraph 20(a), the term "liens created through the act of Landlord" means
only liens that result from the actions or omissions of Landlord directly, and
such term expressly excludes any liens filed or recorded against the Premises
by, or as a result of any act or omission of, Tenant, any lender of Tenant, or
any contractor (including General Contractor), subcontractor or supplier to
Tenant of materials with respect to the Improvements, it being understood that
the discharge of all of such liens shall be the responsibility of Tenant
pursuant to the terms of this paragraph 20.

         b. If Tenant complies with the foregoing, and Tenant continues, in good
faith, to contest the validity of such lien by appropriate legal proceedings
which shall operate to prevent the collection thereof and the sale or forfeiture
of the Premises, or any part thereof, to satisfy the same, Tenant shall be under
no obligation to pay such lien until such time as the same has been decreed, by
court order, to be a valid lien on the Premises. Any surplus deposit retained by
Landlord, after the payment of the lien shall be repaid to Tenant. Provided that
nonpayment of such lien does not cause Landlord to be in violation of any of its
contractual undertakings, Landlord agrees not to pay such lien during the period
of Tenant's contest. However, if Landlord pays for the discharge of a lien or
any part thereof (other than liens relating to the initial construction of the
Improvements) from funds of Landlord, any amount paid by Landlord, together with
all costs, fees and expenses in connection therewith (including reasonable
attorney's fees of Landlord) plus an administrative fee equal to five percent
(5%) of such costs and expenses, shall be repaid by Tenant to Landlord on demand
by Landlord, together with interest thereon at the Overdue Rate. Except for
liens relating to the initial construction of the Improvements, Tenant shall
indemnify and defend Landlord against and save Landlord and the Premises, and
any portion thereof, harmless from and against all losses, costs, damages,
expenses, liabilities, suits, penalties, claims, demands and obligations,
including, without limitation, reasonable attorney's fees, resulting from the
assertion, filing, foreclosure or other legal proceedings with respect to any
such mechanic's lien or other lien or the attempt by Tenant to discharge same as
above provided.

                                      -32-

<PAGE>   40

         c. All materialmen, contractors, artisans, engineers, mechanics,
laborers and any other Person now or hereafter furnishing any labor, services,
materials, supplies or equipment to Tenant with respect to the Premises, or any
portion thereof, are hereby charged with notice that they must look exclusively
to Tenant to obtain payment for the same, except with respect to labor,
services, materials, supplies and equipment authorized by the Approved Plans.
Notice is hereby given that Landlord shall not be liable for any labor,
services, materials, supplies, skill, machinery, fixtures or equipment furnished
or to be furnished to Tenant upon credit, and that no mechanic's lien or other
lien for any such labor, services, materials, supplies, machinery, fixtures or
equipment shall attach to or affect the estate or interest of Landlord in and to
the Premises, or any portion thereof.

         d. Tenant shall not create and, subject to the provisions of paragraphs
20(a) and 20(b) hereof, shall not permit or suffer and shall promptly discharge
and satisfy of record, any other lien, encumbrance, charge, security interest,
or other right or interest which, as a result of Tenant's action or inaction
contrary to the provisions hereof, shall be or become a lien, encumbrance,
charge or security interest upon the Premises, or any portion thereof, or the
income therefrom, other than Permitted Encumbrances.

21.      END OF TERM

         a. Upon the expiration or earlier termination of the Term of this
Lease, Tenant shall surrender the Premises to Landlord in good condition and
repair as a first class facility and suitable for the same use in which the
Premises was originally received from Landlord except as repaired, rebuilt or
altered as required or permitted by this Lease (or, in the case of termination
pursuant to paragraph 13, as condemned) and except for damage caused by
Landlord, and shall surrender all keys to the Premises to Landlord at the place
then fixed for notices to Landlord and shall inform Landlord of all combinations
on locks, safes and vaults, if any. Except as otherwise provided herein, Tenant
shall at such time remove all of its property (including Tenant's Trade
Fixtures) therefrom and all alterations and improvements placed thereon by
Tenant and not consented to by Landlord for which the consent of Landlord is
required pursuant to this Lease, if so requested by Landlord. Tenant shall
repair any damage to the Premises caused by such removal, and any and all such
property not so removed when required shall, at Landlord's option, become the
exclusive property of Landlord or be disposed of by Landlord, at Tenant's cost
and expense, without further notice to or demand upon Tenant.

         b. If the Premises are not surrendered as above set forth, Tenant shall
indemnify, defend and hold Landlord harmless from and against loss or liability
resulting from the delay by Tenant in so surrendering Premises, including,
without limitation, any claim made by any succeeding occupant founded on such
delay. Tenant's obligation to observe or perform this covenant shall survive the
expiration or other termination of this Lease. In addition to the foregoing, and
in addition to the Additional Rent, Tenant shall pay to Landlord a sum equal to
150% of the monthly Fixed Rent which would otherwise be due hereunder for each
month or portion thereof for which Tenant shall remain in possession of the
Premises or any part thereof after the termination of the Term or of Tenant's
rights of possession, whether by lapse of time or otherwise. The provisions of
this

                                      -33-

<PAGE>   41

paragraph 21(b) shall not be deemed to limit or constitute a waiver of any other
rights or remedies of Landlord provided herein, at law or at equity.

         c. All property of Tenant not removed on or before the last day of the
Term of this Lease shall be deemed abandoned. Tenant hereby agrees that Landlord
may remove all property of Tenant, including Tenant's Trade Fixtures, from the
Premises upon termination of this Lease and to cause its transportation and
storage, all at the sole cost and risk of Tenant and Landlord shall not be
liable for damage, theft, misappropriation or loss thereof and Landlord shall
not be liable in any manner in respect thereto and Landlord shall be entitled to
dispose of such property, as Landlord deems fit, without the requirement of an
accounting. Tenant shall pay all costs and expenses of such removal,
transportation and storage. Tenant shall reimburse Landlord upon demand for any
expenses reasonably and actually incurred by Landlord with respect to removal or
storage of abandoned property and with respect to restoring said Premises to
good order, condition and repair.

         d. Except for surrender upon the expiration or earlier termination of
the Term hereof as expressly provided herein, no surrender to Landlord of this
Lease or of the Premises shall be valid or effective unless agreed to and
accepted in writing by Landlord.

22.      ALTERATIONS

         a. Tenant may make alterations, additions or improvements to the
Premises without Landlord's consent only if (i) such alterations, additions or
improvements will be in compliance with all applicable laws, codes, rules,
regulations and ordinances, (ii) such alterations, additions or improvements
will not reduce the fair market value or utility of the Premises, considered as
unencumbered by this Lease, and (iii) such alterations, additions or
improvements will not modify in any way the structural, exterior or roof
elements of the Premises or mechanical, electrical, plumbing, utility or life
safety systems (as opposed to components of a system) of the Premises, but
Tenant shall give prior notice of any such alterations, additions or
improvements to Landlord. In all other cases, Landlord's prior written consent
shall be required, which approval shall not be withheld, delayed or conditioned
if (a) the work to be done would not, in Landlord's reasonable judgment,
adversely affect the value, character, rentability or usefulness of the Premises
or any part thereof. In no event shall Tenant be permitted to install
underground storage tanks or fuel systems on the Premises.

         b. All alterations, additions or improvements requiring Landlord's
consent shall be made at Tenant's sole cost and expense as follows:

               i. Tenant shall submit to Landlord, for Landlord's approval,
complete plans and specifications for all work to be done by Tenant. Such plans
and specifications shall be prepared by the licensed architect(s) and
engineer(s) approved by Landlord, shall comply with all applicable codes,
ordinances, rules and regulations, shall not adversely affect the structural
elements of the Premises, shall be in a form sufficient to secure the approval
of all government authorities with jurisdiction over the Premises, and shall be
otherwise satisfactory to Landlord in Landlord's reasonable discretion.

                                      -34-

<PAGE>   42

               ii. Landlord shall notify Tenant within thirty (30) days whether
Landlord approves or disapproves such plans and specifications. Tenant may
submit to Landlord revised plans and specifications for Landlord's prior
approval, which approval shall not be withheld or delayed if (a) the work to be
done would not, in Landlord's reasonable judgment, adversely affect the value,
character, rentability or usefulness of the Premises or any part thereof, or (b)
the work to be done shall be required by any Law (hereinafter defined). Tenant
shall pay all costs, including the fees and expenses of the licensed
architect(s) and engineer(s), in preparing such plans and specifications. If
Landlord does not respond within such thirty (30) day period, Tenant may send
Landlord a second notice, prominently stating that failure to respond within ten
(10) days shall result in the deemed approval of the plans and specifications
delivered to Landlord as to which no response was made for more than thirty (30)
days. If Landlord fails to respond within such ten (10) day period, such plans
and specifications shall be deemed approved by Landlord.

               iii. All changes (other than field changes for which no change
order is prepared, and which will be reflected in the final "as built" plans) in
the plans and specifications approved by Landlord shall be subject to Landlord's
prior written approval, which shall not be unreasonably withheld, delayed or
conditioned. If Tenant wishes to make such change in approved plans and
specifications, Tenant shall have such architect(s) and engineer(s) prepare
plans and specifications for such change and submit them to Landlord for
Landlord's written approval. Landlord shall notify Tenant in writing promptly
whether Landlord approves or disapproves such change. After Landlord's written
approval of such change, such change shall become part of the plans and
specifications approved by Landlord.

               iv. Tenant shall obtain and comply with all building permits and
other government permits and approvals required in connection with the work.
Tenant shall, through Tenant's licensed contractor, perform the work
substantially in accordance with the plans and specifications approved in
writing by Landlord. Tenant shall pay the entire cost of all work (including the
cost of all utilities, permits, fees, taxes, and property and liability
insurance premiums in connection therewith) required to make the alterations,
additions or improvements. Under no circumstances shall Landlord be liable to
Tenant for any damage, loss, cost or expenses incurred by Tenant on account of
any plans and specifications, contractors or subcontractors, design of any work,
construction of any work, or delay in completion of any work.

               v. Tenant shall give notice to Landlord of the date on which
construction of any work to be done by outside contractors will be commenced at
least ten (10) days prior to such date. Landlord shall have the right to post
and keep posted on the Premises any notices that may be provided by law or which
Landlord may deem to be proper for the protection of Landlord and the Premises
from such liens, and to take any other action Landlord deems necessary to remove
or discharge liens or encumbrances at the expense of Tenant.

               vi. All alterations, additions, fixtures and improvements,
whether temporary or permanent in character, made in or to the Premises by
Tenant, shall become part of the Premises and Landlord's property, except those
which are readily removable without causing material damage to the Premises
(which shall be and remain the property of Tenant). Upon termination or
expiration

                                      -35-

<PAGE>   43

of this Lease, Tenant shall, at Tenant's expense, remove all movable furniture,
equipment, trade fixtures, office machines and other personal property
(including Tenant's Trade Fixtures) from the Premises and repair all damage
caused by such removal. Termination of this Lease shall not affect the
obligations of Tenant pursuant to this paragraph 22(b) to be performed after
such termination.

               vii. Notwithstanding the foregoing paragraphs, if at any time
during the Term of this Lease, Tenant wishes to make alterations, modifications,
expansions or improvements to the Premises which are not required to be made by
the terms of this Lease, and the cost thereof exceeds five hundred thousand
dollars ($500,000), Landlord agrees, subject to the further conditions of this
subparagraph (vii), upon ninety (90) days advance notice including detailed
plans of such alteration, modification, expansion or improvement, to reimburse
the cost thereof promptly upon completion of construction thereof. Landlord
shall cooperate in Tenant's efforts to obtain any easements, permits or licenses
required for such alterations, modifications, expansions or improvements. Any
alterations, modifications, expansions or improvements funded by Landlord shall
be the property of Landlord and shall be fully subject to the terms of this
Lease. In all events, Fixed Rent hereunder (including escalations thereof as
provided in the Basic Lease Information) shall be increased by an amount at
least sufficient to amortize the entire amount expended by Landlord in
connection therewith over the then remaining Term of this Lease at an interest
rate equal to the rate that Landlord could obtain on a hypothetical loan from an
institutional investor for an unsecured loan of the same amount and maturity.
Landlord's failure to fund the cost of any such acquisition and/or expansion
shall not constitute a default by Landlord hereunder and shall not give Tenant
any right to abate Rent or to terminate this Lease. Tenant shall have the right,
in its sole discretion, to finance the cost of any alterations, modifications,
expansions or improvements on the Land out of its own cash flow (in which case
there will be no increase in Fixed Rent due to such investment), provided no
mortgage or other encumbrance is placed on Landlord's or Tenant's interest
therein and provided that Landlord's ownership of such assets and the subjection
of such assets to this Lease is confirmed in a manner reasonably satisfactory to
Landlord, in a way that preserves Tenant's right to amortize its investment as a
leasehold improvement.

               viii. Landlord agrees that Tenant may, at its sole cost and
expense, install, maintain and replace on the roof or parapet of the
Improvements (at a location to be approved by Landlord, such approval not to be
unreasonably withheld, delayed or conditioned) a microwave satellite dish,
aerials and other electronic transmission and receiving equipment for use in
connection with Tenant's business at the Premises (and not for any other
purpose).

23.      MEMORANDUM OF LEASE

         The parties agree to promptly execute a Memorandum of Lease in
recordable form and either of the parties shall have the right, without notice
to the other party, to record such Memorandum of Lease.

24.      SUBLETTING/ASSIGNMENT

                                      -36-

<PAGE>   44

         a. Tenant shall not, directly or indirectly, without the prior written
consent of Landlord, assign this Lease or any interest herein or sublease the
Premises or any part thereof, or permit the use or occupancy of the Premises by
any person or entity other than Tenant and its Affiliates. No consent shall be
required for any sublease which otherwise complies with this paragraph 24 so
long as either (x) Tenant or its Affiliates shall occupy at least fifty percent
(50%) of the square footage of the Premises and of each component building
thereof, or (y) if more than fifty percent (50%) of the Premises or any
component building thereof is occupied by one or more persons other than Tenant
and its Affiliates, each such other person shall have a credit rating at least
as high as that of Tenant at the date of such subleasing. If Tenant has obtained
Landlord's consent to an assignment of its interest under this Lease, Tenant may
be released from further liability hereunder if the assignee has a credit rating
at least as high as that of Tenant on the date of the assignment, and in no
event lower than BBB by Standard and Poor's Rating Service (or the equivalent
rating of another major nationally recognized statistical rating agency if
Standard and Poor's Rating Service is no longer rating Tenant's debt). Tenant
shall in all other cases remain primarily liable (and not liable merely as a
guarantor or surety) for the performance by any assignee or subtenant of all
obligations of Tenant under this Lease, as if no assignment or sublease had been
made. This Lease shall not, nor shall any interest herein, be assignable as to
the interest of Tenant involuntarily or by operation of law without the prior
written consent of Landlord. A merger or consolidation of Tenant with another
entity other than an entity controlled by Tenant, the sale of substantially all
the assets of Tenant to another entity, the change of more than fifty percent
(50%) of the members of the board of directors within a twelve month period
(excluding any change of designees made by a person previously entitled to
designate members of Tenant's board of directors) or the change of the owners of
fifty percent (50%) of more of voting securities of Tenant within a twelve month
period (excluding transfers by a shareholder to an affiliate controlled by or
under common control with such shareholder, and at any time that a majority of
Tenant's stock is publicly held, a transfer among members of the public provided
that no related group of public holders shall have acquired more than 51% of
Tenant's stock) shall be deemed to be an assignment subject to this paragraph,
and Landlord's consent to an assignment described in this sentence shall not be
unreasonably withheld, delayed or conditioned. Notwithstanding the foregoing, if
Tenant's unsecured senior debt is then rated by Standard and Poors Rating
Service or an equivalent rating agency, and assignment caused by events
described in the immediately preceding sentence shall not require Landlord's
consent if within thirty (30) days after the later of such event or the public
announcement of such event, Tenant's credit rating is not downgraded or put on
credit watch with negative implications. Any of the foregoing acts without such
prior written consent of Landlord shall be void and shall, at the option of
Landlord, constitute a default that entitles Landlord to terminate this Lease.
Tenant agrees that the instrument by which any assignment to which Landlord
consents is accomplished shall expressly provide that the assignee will perform
all of the covenants to be performed by Tenant under this Lease as and when
performance is due after the effective date of the assignment or sublease and
that Landlord will have the right to enforce such covenants directly against
such assignee. Any purported assignment without an instrument containing the
foregoing provisions shall be void.

         b. If Landlord consents in writing or if Landlord's consent is not
required, Tenant may complete the intended assignment or sublease subject to the
following conditions: (i) no assignment or sublease shall be valid and no
assignee or subtenant shall take possession of the Premises or any

                                      -37-

<PAGE>   45

part thereof until an executed duplicate original of such assignment or
sublease, in compliance with paragraph 24(a), has been delivered to Landlord,
(ii) no assignee or subtenant shall have a right further to assign or sublease
otherwise than in compliance with this paragraph 24, and (iii) Landlord shall be
entitled to eighty percent (80%) of any net profit on any subletting or
assignment, except a subletting or assignment inherent in a merger,
consolidation, sale of substantially all assets of Tenant or purchase of
substantially all voting securities of Tenant.

         c. No assignment or sublease whatsoever shall release Tenant from
Tenant's obligations and liabilities under this Lease (which shall continue as
the obligations of a principal and not of a guarantor or surety) or alter the
primary liability of Tenant to pay all Rent and to perform all obligations to be
paid and performed by Tenant. The acceptance of Rent by Landlord from any other
person or entity shall not be deemed to be a waiver by Landlord of any provision
of this Lease. Consent to one assignment or sublease shall not be deemed consent
to any subsequent assignment or sublease. If any assignee, subtenant or
successor of Tenant defaults in the performance of any obligation to be
performed by Tenant under this Lease, Landlord may proceed directly against
Tenant without the necessity of exhausting remedies against such assignee,
subtenant or successor. Landlord may consent to subsequent assignments or
subleases or amendments or modifications to this Lease with assignees,
subtenants or successor of Tenant, without notifying Tenant or any successor of
Tenant and without obtaining any consent thereto from Tenant or any successor of
Tenant, and such action shall not release Tenant from liability under this
Lease.

         d. After an assignment of Tenant's interest in this Lease, Landlord
shall not exercise remedies on account of a default or Event of Default
hereunder unless Landlord shall have given notice to the Tenant named herein as
well as the tenant in possession of the Premises, of such default or Event of
Default as provided in paragraph 14. If this Lease shall be terminated as a
result of such default or Event of Default because, by its nature it was not
susceptible of cure by Tenant named herein, then Tenant named herein, if it has
cured all defaults susceptible of cure by such person (including all defaults
that can be cured by the payment of money) shall be entitled to possession of
the Premises for the remainder of the Term under all the terms and conditions of
this Lease as it exists on the date of delivery or as subsequently modified with
the consent of the named Tenant.

25.      HAZARDOUS MATERIAL

         a. Prior to Substantial Completion of each component of the
Improvements, the costs of complying with all Environmental Laws as to the
incomplete component shall be included in the Project Budget and paid as a Cost
of the Project. After Substantial Completion of each component of the
Improvements, as to each completed component, Tenant (i) shall comply, and cause
the Premises to comply, with all Environmental Laws (as hereinafter defined)
applicable to the Premises (including the making of all submissions to
governmental authorities required by Environmental Laws and the carrying out of
any remediation program specified by such authority), (ii) shall prohibit the
use of the Premises for the generation, manufacture, refinement, production, or
processing of any Hazardous Material (as hereinafter defined) or for the
storage, handling, transfer or transportation of any Hazardous Material (other
than in connection with the operation, business and maintenance of the Premises
and in commercially reasonable quantities as a consumer thereof and supplier of

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<PAGE>   46

consumer products and in compliance with Environmental Laws), (iii) shall not
permit to remain, install or permit the installation on the Premises of any
surface impoundments, underground storage tanks, pcb-containing transformers or
asbestos-containing materials, and (iv) shall cause any alterations of the
Premises to be done in a way so as to not expose in an unsafe manner the persons
working on or visiting the Premises to Hazardous Materials and in connection
with any such alterations shall remove any Hazardous Materials present upon the
Premises which are not in compliance with Environmental Laws or which present a
danger to persons working on or visiting the Premises.

         b. "Environmental Laws" means the Resource Conservation and Recovery
Act of 1976, as amended, 42 U.S.C. ss.ss.6901, ET SEQ. (RCRA), as amended, the
Comprehensive Environmental Response, Compensation and Liability Act of 1980, as
amended by the Superfund Amendments and Reauthorization Act of 1986, 42 U.S.C.
ss.ss.9601 ET SEQ. (CERCLA), as amended, the Toxic Substance Control Act, as
amended, 15 U.S.C. ss.ss.2601 ET SEQ., the Federal Insecticide, Fungicide and
Rodenticide Act, as amended, 7 U.S.C. ss.ss.136 ET SEQ., and all applicable
federal, state and local environmental laws, ordinances, rules and regulations,
as any of the foregoing may have been or may be from time to time amended,
supplemented or supplanted, and any other federal, state or local laws,
ordinances, rules and regulations, now or hereafter existing relating to
regulations or control of Hazardous Material or materials. The term "Hazardous
Materials" as used in this Lease shall mean substances defined as "hazardous
substances", "hazardous materials", "hazardous wastes" or "toxic substances" in
any applicable federal, state or local statute, rule, regulation or
determination, including but not limited to the Comprehensive Environmental
Response, Compensation and Liability Act of 1980, as amended, 42 U.S.C.
ss.ss.9601, ET SEQ.; the Hazardous Materials Transportation Act, 49 U.S.C.
ss.ss.1801, ET SEQ.; the Resource, Conservation and Recovery Act of 1976, 42
U.S.C. ss.ss.6901, ET SEQ.; and, asbestos, pcb's, radioactive substances,
methane, volatile hydrocarbons, petroleum or petroleum-derived substances or
wastes, radon, industrial solvents or any other material as may be specified in
applicable law or regulations.

         c. After Substantial Completion of each component of the Improvements,
as to each completed component Tenant agrees to protect, defend, indemnify and
hold harmless Landlord, its directors, officers, employees and agents, and any
successors to Landlord's interest in the chain of title to the Premises, their
direct or indirect partners, directors, officers, employees, and agents, from
and against any and all liability, including all foreseeable and all
unforeseeable damages including but not limited to attorney's and consultant's
fees, fines, penalties and civil or criminal damages, directly or indirectly
arising out of the use, generation, storage, treatment, release, threatened
release, discharge, spill, presence or disposal of Hazardous Materials from, on,
at, to or under the Premises thereafter during the Term of this Lease, and
including, without limitation, the cost of any required or necessary repair,
response action, remediation, investigation, cleanup or detoxification and the
preparation of any closure or other required plans, whether such action is
required or necessary prior to or following transfer of title to the Premises.
This agreement to indemnify and hold harmless shall be in addition to any other
obligations or liabilities Tenant may have to Landlord at common law under all
statutes and ordinances or otherwise, and shall survive following the date of
expiration or earlier termination of this Lease for five (5) years, except where
the event giving rise to the liability for which indemnity is sought arises out
of Tenant's acts, in which case the agreement to indemnify shall survive the
expiration or termination of this Lease without limit of time. Prior to Final

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<PAGE>   47

Completion of both components of the Improvements, the foregoing indemnity shall
be limited to Landlord. Tenant expressly agrees that the representations,
warranties and covenants made and the indemnities stated in this Lease are not
personal to Landlord, and the benefits under this Lease may be assigned to
subsequent parties in interest to the chain of title to the Premises, which
subsequent parties in interest may proceed directly against Tenant to recover
pursuant to this Lease. Tenant, at its expense, may institute appropriate legal
proceedings with respect to environmental matters of the type specified in this
paragraph 25(c) or any lien for such environmental matters, not involving
Landlord or its Mortgagee as a defendant (unless Landlord or its mortgagee is
the alleged cause of the damage), conducted in good faith and with due
diligence, provided that such proceedings shall not in any way impair the
interests of Landlord or Mortgagee under this Lease or contravene the provisions
of any first mortgage. Counsel to Tenant in such proceedings shall be reasonably
approved by Landlord if Landlord is a defendant in the same proceeding. Landlord
shall have the right to appoint co-counsel, which co-counsel will cooperate with
Tenant's counsel in such proceedings. The fees and expenses of such co-counsel
shall be paid by Landlord, unless such co-counsel are appointed because the
interests of Landlord and Tenant in such proceedings, in such counsel's opinion,
are or have become adverse, or Tenant or Tenant's counsel is not conducting such
proceedings in good faith or with due diligence.

         d. After Substantial Completion of each component of the Improvements,
as to the completed component, Tenant, upon two (2) days prior notice shall
permit such persons as Landlord or any assignee of Landlord may designate and
(unless an Event of Default has occurred and is continuing) approved by Tenant,
which approval shall not be unreasonably withheld or delayed ("Site Reviewers"),
to visit the Premises from time to time and perform environmental site
investigations and assessments ("Site Assessments") on the Premises for the
purpose of determining whether there exists on the Premises any environmental
condition which may result in any liability, cost or expense to Landlord or any
other owner or occupier of the Premises. Such Site Assessments may include both
above and below the ground testing for environmental damage or the presence of
Hazardous Material on the Premises and such other tests on the Premises as may
be necessary to conduct the Site Assessments in the reasonable opinion of the
Site Reviewers. Tenant shall supply to the Site Reviewers such historical and
operational information regarding the Premises as may be reasonably requested by
the Site Reviewers to facilitate the Site Assessments (other than information
previously supplied in writing to Landlord by Tenant) and shall make available
for meetings with the Site Reviewers appropriate personnel having knowledge of
such matters. The cost of performing and reporting all Site Assessments shall be
paid by Landlord unless an Event of Default has occurred and is continuing or
unless the Site Reviewers discover an environmental condition causing the
Premises requiring action reasonably estimated by Landlord to cost five thousand
dollars ($5,000) or more, in either of which events such cost will be paid by
Tenant and if not promptly paid by Tenant then together with an administrative
fee equal to five percent (5% )of such cost within ten (10) days after demand by
Landlord with interest to accrue at the Overdue Rate. Landlord, promptly after
request by Tenant and payment by Tenant to the extent required as aforesaid,
shall deliver to Tenant copies of reports, summaries or other compilations of
the results of such Site Assessments (it being agreed that if Tenant is to pay
for a report, Landlord shall deliver to Tenant excerpts from the report showing
the facts which make Tenant responsible for the cost of the report). Tenant's
sole remedy for Landlord's breach of the preceding sentence shall be a mandatory
injunction, and not a termination of this Lease or a withholding or reduction of
Rent.

                                      -40-

<PAGE>   48

         e. Tenant shall notify Landlord in writing, promptly upon Tenant's
learning thereof, of any:

               i. notice or claim to the effect that Tenant is or may be liable
to any Person as a result of the release or threatened release of any Hazardous
Material into the environment from the Premises;

               ii. notice that Tenant is subject to investigation by any
governmental authority evaluating whether any remedial action is needed to
respond to the release or threatened release of any Hazardous Material into the
environment from the Premises;

               iii. notice that the Premises are subject to an environmental
lien; and

               iv. notice of violation to Tenant or awareness by Tenant of a
condition which might reasonably result in a notice of violation of any
applicable Environmental Law that could have a material adverse effect upon the
Premises.

         f. If required by the Lender in accordance with the Construction Loan
Documents after Substantial Completion of any component of the Improvements,
Tenant shall deliver, at Tenant's expense, to Landlord, Lender and any other
parties to the financing arrangements contemplated by the Construction Loan
Documents, the updated environmental site assessment report or reports of such
completed component(s) and related Land, which reports shall (i) confirm the
substance of the previous reports, (ii) reveal no additional actual or potential
environmental liabilities, and (iii) confirm that the construction of the
Improvements to date effected no change in compliance with Environmental Laws
and otherwise satisfies the requirements of this subparagraph. If such
environmental site assessment reports, as updated, recommend or reveal the need
for additional review or remediation, Tenant, at its own expense as to
Substantially Completed components of the Improvement and related Land, shall
provide such additional environmental site assessment reports or remediation as
are required by Landlord, Lender or any other party to such financing
arrangements. The cost of performing and reporting all other Site Assessments
shall be paid by Landlord unless an Event of Default has occurred and is
continuing or unless the Site Reviewers discover a material environmental
condition causing the Premises not to be in compliance with applicable
Environmental Laws, in either of which events such cost together with an
administrative fee equal to five percent (5%) thereof will be paid by Tenant
within ten (10) days after demand by Landlord with interest to accrue at the
Overdue Rate. The results of the environmental site assessment reports shall be
reasonably satisfactory to Landlord, Lender and any other parties to the
financing arrangements.

26. EARLY TERMINATION Upon irrevocable notice given to Landlord not later than
June 1, 2009 and provided that no Event of Default shall have occurred and be
continuing hereunder, Tenant shall have the right to terminate this Lease as of
December 1, 2010, provided Tenant pays (x) if the Premises are leased to a third
party as of the date of termination, a termination fee equal to the Fixed Rent
that would be payable hereunder for the year following such termination date,
(y)

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<PAGE>   49

if the Premises are not leased to a third party as of the date of termination, a
termination fee equal to the Fixed Rent that would be payable hereunder for the
year following such termination date, plus Fixed Rent at the rate applicable to
the year following such termination date and Additional Rent until the Premises
are leased to a third party (but in no event for a period longer than two (2)
years), plus the reasonable cost of marketing the Premises, including brokerage
commissions and refitting the Premises for a new tenant, but offset by any rent
paid by a new tenant during such two year period in excess of the Fixed Rent
that would be payable hereunder during such period.

27.      TENANT ALLOWANCE; FINANCING.

         If Landlord proposes to refinance any Mortgage, Tenant shall cooperate
in the process, and shall negotiate in good faith any request made by a
prospective Mortgagee for changes or modifications to this Lease, and shall not
unreasonably withhold its consent to any such proposed change or modification so
long as the same does not adversely affect any significant right of Tenant under
this Lease or increase Tenant's obligations under this Lease. Tenant shall
permit Landlord and the proposed Mortgagee, at their expense, to meet with
management personnel of Tenant at Tenant's offices and to discuss the Tenant's
business and finances. On request of Landlord, Tenant agrees to provide any such
prospective Mortgagee the information to which Landlord is entitled hereunder.
If any such information is non-public and designated as such by Tenant, Landlord
will take reasonable steps to assure the confidentiality of such information.
Tenant agrees to execute, acknowledge and deliver documents reasonably requested
by the prospective Mortgagee (such as a consent to the financing (without
encumbering Tenant's assets), a consent to assignment of lease, and a
subordination, non-disturbance and attornment agreement meeting the standards
set forth in paragraph 16), customary for tenants to sign in connection with
mortgage loans to their landlords, so long as such documents are either in form
then customary among institutional lenders (provided the same do not adversely
change Tenant's rights or obligations in a way not previously changed by loan
documents previously executed by Tenant in connection with an earlier Mortgage).
Landlord shall pay Tenant's reasonable legal fees with regard to any financing
of the Premises other than the initial construction loan, the initial permanent
financing and subsequent refinancings occurring at least five (5) years after
the last financing in which Landlord did not pay for Tenant's legal expenses.

28. REPRESENTATIONS AND WARRANTIES OF TENANT. Tenant warrants and represents to
Landlord as follows as of the Closing Date:

         a. ORGANIZATION AND POWER. Tenant (i) is a corporation duly formed,
validly existing and in good standing under the laws of the Commonwealth of
Massachusetts and is duly qualified as a foreign corporation and in good
standing in all other jurisdictions in which such qualification is required in
order for Tenant to carry on its business as now conducted, except where the
failure to be so qualified will not have a material adverse effect on Tenant;
and (ii) has the full corporate power, authority and legal right to lease the
Premises from Landlord and to execute, deliver and perform the Operative
Documents to which it is a party.

                                      -42-

<PAGE>   50

         b. FULL DISCLOSURE. No written statement delivered to Landlord or
Lender by Tenant in connection with the negotiation of the transactions
contemplated hereby or contained in this Lease or any other Operative Document
to which Tenant is a party contains any untrue statement of a material fact or
omits a material fact necessary to make the statements contained therein or
herein not misleading in any material respect. There is no fact peculiar to
Tenant which is not disclosed in writing which materially and adversely affects
Tenant's ability to perform under this Lease or any other Operative Document to
which Tenant is a party.

         c. LITIGATION. There is no action, suit or proceeding pending, or to
the best of Tenant's knowledge threatened, against or affecting Tenant at law or
in equity before any court, or by or before any federal, state, municipal or
other governmental department, commission, board, bureau, agency, or
instrumentality or arbitrator which if adversely determined (i) individually or
in the aggregate would materially and adversely affect the performance by Tenant
of its obligations under this Lease or any other Operative Document to which it
is a party or the business and operations of Tenant, taken as a whole, or (ii)
would affect in any material respect the consummation or validity of the
Operative Documents to which it is a party, or the transactions contemplated
thereby.

         d. FINANCIAL INFORMATION. There has been no material adverse change in
the condition of Tenant, financial or otherwise, since December 31, 1998.
Landlord acknowledges receipt of Tenant's form 10Q as of September 30, 1999 and
its form S-4 filed with the Securities and Exchange Commission on May 6, 1999
(as supplemented by filings made on June 18, July 2 and July 14, 1999), and
agrees that the state of facts disclosed therein shall not be deemed to
constitute a material adverse change from Tenant's condition as of December 31,
1998. The foregoing acknowledgment shall not constitute a standard of
materiality for any other purpose than this subparagraph.

         e. NO DEFAULTS. No Default or Event of Default has occurred and is
continuing. Tenant is not in default in the payment of the principal or interest
on any indebtedness for borrowed money or for its deferred purchase of property
or in default under any instrument or agreement under and subject to which any
such indebtedness has been issued or under any lease, in each case involving the
likelihood of any actions or proceedings against it which will materially and
adversely affect Tenant or its ability to perform under this Lease, under this
Lease or any other Operative Document to which Tenant is a party.

         f. NO VIOLATION. Neither the execution, delivery or performance by
Tenant of this Lease or the other Operative Documents to be delivered by Tenant
nor compliance herewith or therewith (i) conflicts or will conflict with or
results or will result in a breach of or constitutes or will constitute a
default under (A) any law in effect as of the Closing Date or (B) any order,
writ, injunction or decree of any court or other governmental authority, or (ii)
results or will result in the creation or imposition of any lien, charge or
encumbrance upon its property pursuant to such agreement or instrument except
for Permitted Encumbrances. Neither the execution, delivery or performance by
the Tenant of this Lease, or the Operative Documents to be delivered by Tenant
nor compliance by Tenant herewith or therewith conflicts or will conflict with
or results or will result in a breach of or constitutes or will constitute a
default under (x) the articles of organization or by-laws of Tenant,

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<PAGE>   51

(y) any agreement or instrument to which Tenant is a party or by which it is
bound, or (z) the terms of any agreement pursuant to which Tenant has borrowed
money.

         g. OPERATIVE DOCUMENTS ARE LEGAL AND AUTHORIZED. This Lease and the
other Operative Documents to which Tenant is a party have been duly authorized
by Tenant by all necessary corporate action (including any necessary action by
its shareholders) and duly executed and delivered by it, and, assuming the due
authorization, execution and delivery thereof by the other parties thereto, are
legal, valid and binding obligations of Tenant enforceable against it in
accordance with their respective terms.

         h. INSURANCE. All insurance required by Article 10 of this Lease to be
maintained by Tenant at the date hereof is in effect, and all premiums now due
and payable in respect of such insurance have been paid.

         i. CONSENTS. No consent, license, approval or authorization of, or
filing, registration or declaration with, or exemption or other action by, any
governmental or public body, authority, bureau or agency (including courts)
under the laws of the United States of America or the Commonwealth of
Massachusetts, or of any other state is required in connection with the
execution and delivery or performance by Tenant of this Lease or any other
Operative Document to which it is a party. All actions, consents and approvals
of Tenant required to be performed on or prior to the Closing Date in connection
with the transactions contemplated by the Operative Documents have been
performed in accordance with their respective terms or have been obtained and
remain in full force and effect as of the Closing Date.

         j. APPROVALS. Tenant holds or, if not required on the date hereof, will
obtain in the ordinary course on or before the date required, all licenses,
certificates, consents, approvals, and permits from governmental authorities
materially necessary to perform its obligations under this Lease, to use and
operate the Premises in accordance with the provisions of this Lease and to
enter into and perform this Lease and the other Operative Documents.

         k. COMPLIANCE; TAXES. The Improvements, if constructed in accordance
with the Approved Plans, will comply with all zoning, subdivision and other land
use laws and regulations, including without limitation the Americans with
Disabilities Act. Upon completion of the Improvements, Tenant will use and
occupy the Premises, and the Premises are acceptable (or will be upon completion
of the Improvements) to Tenant, for its business purposes. There are no eminent
domain proceedings pending, or to Tenant's knowledge, threatened with respect
thereto. Tenant is not in default in the payment of any taxes levied or assessed
against it or its assets, non-payment of which would materially and adversely
affect Tenant or its ability to perform under this Lease, under this Lease or
any other Operative Document to which Tenant is a party.

         l. LEASE. Tenant has unconditionally accepted the Premises to the
extent set forth under the terms and conditions of this Lease, and no offset
exists with respect to any Fixed Rent or other sums payable under this Lease and
no Fixed Rent or other sum payable under this Lease has been prepaid.

                                      -44-

<PAGE>   52

         m. USE. The Permitted Encumbrances do not interfere in any material
respect with the intended use by Tenant of the Premises.

         n. ERISA. Tenant is not entering into this Lease or any other Operative
Document or transaction contemplated hereby or thereby, directly or indirectly,
in connection with any arrangement in any way involving any employee benefit
plan or related trust with respect to which it is a party-in-interest, all
within the meaning of ERISA and the Code.

         o. PROPERTY RELATED INFORMATION. All information provided by or on
behalf of Tenant to the engineers in connection with the environmental site
assessment reports contemplated by this Lease or to the Appraiser in connection
with the Closing Appraisal is, to the best of Tenant's knowledge, true, accurate
and complete in all material respects.

         p. LOCATION OF OFFICE AND RECORDS. Tenant's principal place of business
is 233 Fortune Boulevard, Milford, Massachusetts. Tenant will keep its corporate
records concerning this Lease and the Premises in its offices at such address
until completion of the Improvements, at which time all such records shall be
kept at the Premises. Tenant will notify Landlord and Lender promptly (but in no
event later than five days after any such change) of any change in any of the
information set forth in this paragraph 28(p).

29. REPRESENTATIONS AND WARRANTIES OF LANDLORD. Landlord represents and warrants
to Tenant as follows as of the Closing Date:

         a. ORGANIZATION AND POWER. (i) Landlord is a limited liability company
duly formed, validly existing and in good standing under the laws of the State
of Delaware and duly qualified to transact business in the Commonwealth of
Massachusetts; and (ii) Landlord has full power and authority (A) to execute,
deliver and perform the terms and provisions of this Lease and the other
Operative Documents to which Landlord is a party, and (B) to acquire and hold a
fee or leasehold estate in the Premises.

         b. AGREEMENTS LEGAL AND AUTHORIZED. This Lease and the other Operative
Documents to which Landlord is a party have been duly authorized by Landlord and
duly executed and delivered by it and, assuming the due authorization, execution
and delivery thereof by the other parties thereto, are legal, valid and binding
obligations of Landlord, enforceable against it in accordance with their
respective terms.

         c. LITIGATION. There is no action, suit or proceeding pending, or to
the best of Landlord's knowledge threatened, against or affecting Landlord at
law or in equity before any court, or by or before any federal, state, municipal
or other governmental department, commission, bound, bureau, agency, or
instrumentality or arbitration which, if adversely determined, would materially
and adversely affect the Premises or would question the right, power and
authority of Landlord to enter into or perform this Lease or any other Operative
Document to which it is a party.

         d. NO VIOLATION. Neither the execution, delivery or performance by
Landlord of this Lease or the other Operative Documents to be delivered by
Landlord nor compliance herewith or therewith

                                      -45-

<PAGE>   53

(i) conflicts or will conflict with or results or will result in a breach of or
constitutes or will constitute a default under (A) any law in effect as of the
date of delivery of this Lease or (B) any order, writ, injunction or decree of
any court or other governmental authority, or (ii) results or will result in the
creation or imposition of any lien, charge or encumbrance upon its property
pursuant to such agreement or instrument, except the liens and security
interests created, and as permitted, by the Operative Documents. Neither the
execution, delivery or performance by the Landlord of this Lease, or the
Operative Documents to be delivered by Landlord nor compliance by Landlord
herewith or therewith conflicts or will conflict with or results or will result
in a breach of or constitutes or will constitute a default under (x) the
certificate of formation or limited liability company agreement of Landlord or
(x) any agreement or instrument to which Landlord is a party or by which it is
bound.

         e. CONSENTS. No consent, license, approval or authorization of, or
filing, registration or declaration with, or exemption or other action by, any
governmental or public body, bureau or agency (including courts) under the laws
of the Commonwealth of Massachusetts is required in connection with the
execution and delivery or performance by Landlord of this Lease or any other
Operative Document to which Landlord is a party.

30. LANDLORD'S WORK.

         a. Upon the request of Tenant and in consideration of Tenant's
agreement to enter into this Lease of the Premises, Landlord has entered into
the Construction Contract and will use commercially reasonable efforts to cause
the General Contractor to complete the construction and performance of work
thereunder in accordance with the Approved Plans. Tenant will lease the
Improvements, once constructed, from Landlord in accordance with the terms and
conditions of this Lease, and Landlord and Tenant therefore agree that Tenant
should have certain rights and obligations with respect to the performance of
Landlord's Work.

               Landlord and Tenant acknowledge that the Approved Plans for
Landlord's Work are not yet complete. Landlord and Tenant agree that any
proposed plan or specification of a portion of Landlord's Work or a proposed
revision of an Approved Plan shall be submitted from time to time by General
Contractor simultaneously to both Landlord and Tenant. Landlord agrees to
promptly give commercially reasonable consideration to all proposed plans and
changes to plans. Landlord agrees that it will not withhold, delay or condition
its approval of a plan or specification which is approved by Tenant provided the
work depicted on such plan or described in such specification, when considered
together with the work depicted or described in the existing Approved Plans: (i)
will not increase the total cost of the Improvements set forth in the
Construction Contract, and (ii) does not materially adversely affect the
anticipated soundness, structural integrity, value, utility, operation or useful
life of the Improvements; provided, however, that Landlord may not withhold its
approval of a plan pursuant to clause (i) above if Tenant shall agree to
reimburse the cost of the affected element(s) of the Improvements in the manner
set forth in section 30(j) below. If Tenant shall seek Landlord's consent to a
plan which contains element(s) which materially adversely affect the value,
utility, operation or useful life of the Improvements, Landlord may require, as
a condition to such consent, that upon expiration or termination of this Lease,
Tenant shall restore the Premises to the physical construction and condition
they would have been in if such element(s) included in

                                      -46-

<PAGE>   54

the plan had not been approved. Upon approval by Landlord and Tenant as provided
in this paragraph, the proposed plan or specification shall be an Approved Plan.

         b. So long as no Event of Default has occurred and is continuing
hereunder, Landlord agrees that Landlord shall not enter into any amendment of,
agree to any consent under, or give any waivers or approvals pursuant to the
terms of the Construction Contract without obtaining the prior written consent
of Tenant if such amendment, consent, waiver or approval would have the effect
of (i) increasing any of Tenant's financial obligations under this Lease (other
than an increase in Fixed Rent by reason of increased investment by Landlord, as
contemplated in the Basic Lease Information), (ii) impairing or delaying in any
material way Tenant's use or occupancy of the Improvements as contemplated by
the Approved Plans, (iii) altering in any material adverse respect any of the
Approved Plans or materially adversely affecting the soundness, structural
integrity, value, utility, operation or useful life of the Improvements, or (iv)
otherwise adversely affecting Tenant's rights to the use or occupancy of the
Improvements as contemplated by the Approved Plans.

         c. So long as no Event of Default has occurred and is continuing
hereunder, Landlord and Tenant agree that any Change Orders for Landlord's Work
requiring the consent of Landlord pursuant to the terms of the Construction
Contract shall require the consent of both Landlord and Tenant. Accordingly, so
long as no Event of Default has occurred and is continuing hereunder, Landlord
agrees not to give its consent to any Change Order unless Landlord shall first
have received Tenant's prior written consent to such Change Order. Each of
Landlord and Tenant agrees that it shall not unreasonably withhold, condition or
delay its consent to any Change Order if such Change Order, when considered
together with all other Change Orders executed and delivered to such date, (i)
will not increase the total cost of the Improvements except as the cost of
completion in accordance with Approved Plans necessitates the increased cost;
and (ii) does not materially adversely affect the soundness, structural
integrity, value, utility, operation or useful life of the Improvements, so long
as the Construction Contract and the payment and performance bond relating
thereto shall have been amended to reflect such Change Order for Landlord's
Work; provided, however, that Landlord may not withhold its approval of a Change
Order pursuant to clause (i) above if Tenant shall agree to reimburse the cost
of the affected element(s) of the Improvements in the manner set forth in
section 30(j) below. In addition, each of Landlord and Tenant agree that it
shall not unreasonably withhold, condition or delay its consent to any Change
Order if such Change Order is based on the topography or configuration of the
Land, local zoning requirements, or the location of adjacent buildings, and
Landlord agrees to permit the cost of such Change Order to be paid out of the
contingency reserve provided in the Project Budget or, to the extent permitted
by the lender under the Construction Loan, the contingency reserve provided in
the Construction Contract. If Tenant shall seek Landlord's consent to a Change
Order which contains element(s) which materially adversely affect the value,
utility, operation or useful life of the Improvements, Landlord may require, as
a condition to such consent, that upon expiration or termination of this Lease,
Tenant shall restore the Premises to the physical construction and condition
they would have been in if such element(s) included in the Change Order had not
been approved.

         d. Upon delivery, installation, testing or completion of construction
(including punch list items) of any aspect of

                                      -47-

<PAGE>   55

Landlord's Work, as appropriate, Tenant shall inspect such aspect of Landlord's
Work and, unless Tenant gives Landlord timely written notice of any defect in or
other objection to such aspect of Landlord's Work, (i) Tenant shall be deemed to
have accepted such aspect of Landlord's Work under this Lease and (ii) Tenant
shall be deemed to have agreed that such aspect of Landlord's Work is
satisfactory to Tenant in all respects and suitable for its purposes hereunder.
The foregoing acceptance of Landlord's Work shall not limit Tenant's rights, if
any, as against General Contractor or against third parties in respect of their
warranties with respect thereto.

         e. Without limiting the generality of the preceding subparagraph (i)
from time to time at Landlord's request and (ii) in any event at such time as a
component of the Improvements is Substantially Complete and any punchlist items
with respect to such component have been addressed by General Contractor, Tenant
shall execute and deliver an instrument confirming Tenant's acceptance of
Landlord's Work or any appropriate portion thereof.

         f. Tenant has received and reviewed copies of the Construction Contract
and the Construction Loan Documents and accepts their terms. Landlord hereby
grants to Tenant, to the extent of its right to do so under the Construction
Contract, the rights of Tenant described in the Construction Contract. In
furtherance of the foregoing and not in limitation thereof, Tenant, at Tenant's
sole cost and expense, agrees to cooperate with Landlord in all reasonable
respects in (i) delivering prompt written responses to Landlord and, if
requested, to General Contractor, in connection with any proposed amendment of,
consents under, or giving of any waivers or approvals pursuant to the terms of
the Construction Contract, (ii) delivering prompt written responses to Landlord
and, if requested, to General Contractor, in connection with any Change Orders
under the Construction Contract, (iii) satisfying conditions precedent to the
advance of proceeds under the Construction Loan involving Tenant, (iv)
delivering prompt written responses to Landlord and, if requested, to Lender, in
connection with any proposed amendment of, consents under, or giving of any
waivers or approvals pursuant to the terms of any of the Construction Loan
Documents, (v) providing any estoppel certificates, documents, certificates or
opinions reasonably requested by Landlord, General Contractor or Lender in
connection with the transactions contemplated by the Construction Contract, this
Lease and the Construction Loan Documents, and (vi) otherwise carrying out the
effect and intent of the Construction Contract, this Lease and the Construction
Loan Documents.

         g. Tenant shall at all times during the construction of the
Improvements keep and maintain accurate books, records and accounts showing all
materials ordered and received, and all disbursements and accounts payable in
connection with the construction of the Improvements, and shall make such books,
records and accounts available to Landlord, upon two business days' advance
notice, for inspection and copying during normal business hours at the office of
Tenant as set forth in the preliminary caption of this Lease.

         h. Tenant acknowledges and agrees that, in dealing with Landlord under
the terms and provisions of this paragraph 30, Tenant shall be entitled to rely
only on communications and statements of one of Landlord's Authorized
Representatives, or such other person as Landlord may designate from time to
time by written notice to Tenant.

                                      -48-

<PAGE>   56

         i. Tenant shall give Landlord prompt written notice of any incident of
Force Majeure, commencement of any litigation, or other interruption of the
construction of the Project or which may materially interfere with the ability
to complete the warehouse component of the Improvements by September 1, 2000, or
to complete the office building component of the Improvements by December 1,
2000.

         j. If Tenant shall have agreed to pay the increased cost shown on a
proposed plan or described in a proposed specification or required by a proposed
Change Order pursuant to section 30(a) or 30(c), respectively, Tenant shall
reimburse the cost of such element(s) of the Improvements in question as
leasehold improvement(s) promptly after Final Completion, at a price equal to
the increased cost of the work described in such plan, specification or Change
Order under the design/build agreement between Landlord and General Contractor,
plus the interest paid by Landlord used to pay for such costs pursuant to loan
terms arranged by Tenant, so that the ratio between Tenant's equity investment
and the Construction Loan will, upon completion of the Improvements, remain
constant, in which case any changes in Fixed Rent will be determined pursuant to
the terms of this Lease. It is understood that Landlord will fund neither its
equity investment nor a draw under the Construction Loan to pay for any such
cost, but that such costs shall be initially paid by an accommodation third
party non-recourse loan to Landlord secured either by an assignment of Tenant's
cost reimbursement agreement or a letter of credit under Tenant's credit line.

31.      RESERVED.

32.      TENANT'S RIGHT OF FIRST REFUSAL.

         a. Tenant shall have a one time right of first refusal with respect to
the Premises as hereinafter set forth. If at any time this Lease is in full
force and effect, Landlord shall receive a bona fide offer from any third party
for the purchase of the Premises, which offer Landlord shall desire to accept,
Landlord shall promptly deliver to Tenant a copy of such offer (the "Offer
Notice"). The delivery of the Offer Notice to Tenant shall constitute a written
offer by Landlord to sell the Premises to Tenant upon the same terms and
conditions as set forth in the Offer Notice. Provided that no Event of Default
has occurred and is continuing, Tenant may, within twenty (20 )business days
after receipt of the Offer Notice, elect to purchase the Premises on the same
terms and conditions as those set forth in the Offer Notice by delivering to
Landlord within said twenty (20) business days a written acceptance of such
offer together with a non-refundable deposit equal to five percent (5%) of the
gross purchase price (or such larger deposit as may be required by the terms of
the third party offer). If Tenant accepts the offer, Landlord shall convey the
Premises to Tenant in accordance with the provisions of paragraph (b) below
(except that the deed shall be subject to any encumbrances contemplated by the
Offer Notice) and Tenant shall pay to Landlord the purchase price and other
consideration as set forth in the Offer Notice. If Tenant fails to accept the
offer within the time period herein specified, Tenant's right of first refusal
under this Lease shall terminate and be null and void and Landlord shall be free
to, but not obligated to, complete the proposed sale of the Premises, provided
that the terms on which such sale is consummated are not more favorable to the
purchaser (except in DE MINIMIS respects) than the terms offered to Tenant
pursuant to the Offer Notice. Tenant's right of first refusal shall become null
and void upon the first sale of the

                                      -49-

<PAGE>   57

Premises to a bona fide third party. The term, "the right of first refusal" in
this paragraph shall be inapplicable to a transfer to any Person affiliated with
Landlord. The provisions of this paragraph shall not apply to or prohibit: (i)
any mortgaging, subjection to deed of trust or other hypothecation of Landlord's
interest in the Premises; (ii) any sale of the Premises pursuant to a private
power of sale, under, or judicial foreclosure of, any mortgage, deed of trust or
other security instrument or devise to which Landlord's interest in the Premises
is now or hereafter subject; (iii) any transfer of Landlord's interest in the
Premises to a mortgagee, beneficiary under deed of trust or other holder of a
security interest therein by deed in lieu of foreclosure; or (iv) any transfer
of the Premises to any governmental or quasi-governmental agency with power of
condemnation.

         b. If Tenant shall accept such offer, the title closing shall take
place within 20 business days after such acceptance. Landlord shall deliver to
Tenant a Massachusetts quitclaim deed conveying the Premises as provided in
paragraph (a) above and a certificate in customary form pursuant to section 1445
of the Internal Revenue Code of 1986, as amended; all costs of such transfer,
and any closing and due diligence costs which the proposed purchaser would pay,
shall be paid by Tenant. Unless all Rent and other sums due hereunder are paid
in full at or prior to the title closing, Landlord may, at Landlord's option,
terminate Landlord's obligation to convey the Premises pursuant to this
paragraph.

33.      MISCELLANEOUS PROVISIONS.

         a. This Lease and all of the covenants and provisions hereof shall
inure to the benefit of, and be binding upon, the parties hereto and the heirs,
personal representatives, successors and permitted assigns of the parties.

         b. The titles and headings appearing in this Lease are for reference
only and shall not be considered a part of this lease or in any way to modify,
amend or affect the provisions thereof.

         c. This Lease contains the complete agreement of the parties with
reference to the leasing of the Premises, and may not be amended except by an
instrument in writing signed by Landlord and Tenant and consented by Mortgagee
(if any).

         d. Any provision or provisions 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 the remaining provisions hereof shall nevertheless remain
in full force and effect.

         e. This Lease may be executed in one or more counterparts, and may be
signed by each party on a separate counterpart, each of which, taken together,
shall be an original, and all of which shall constitute one and same instrument.

         f. The term "Landlord" as used in this Lease shall mean only the owner
or owners at the time in question of the Premises and in the event of any
transfer of such title or interest, Landlord named in this Lease (and in case of
any subsequent transfers, then the grantor) shall be relieved from and after the
date of such transfer of all liability as respects Landlord's obligations
thereafter to be performed hereunder, provided that any funds in the hands of
Landlord or the then grantor at the

                                      -50-

<PAGE>   58

time of such transfer, in which Tenant has an interest, shall be delivered to
the grantee. The obligations contained in this Lease to be performed by Landlord
shall, subject as aforesaid, be binding on Landlord's successors and assigns,
only during their respective periods of ownership.

         g. This Lease shall be governed by and construed and enforced in
accordance with and subject to the laws of the state where the Premises are
located.

         h. Any claim based on or in respect of any liability of Landlord under
this Lease shall be enforced only against the Premises and insurance proceeds
and condemnation awards relating to the Premises, and not against any other
assets, properties or funds of (1) Landlord or any director, officer,
shareholder, general partner, limited partner, or direct or indirect partners,
employee or agent of Landlord or its general partners (or any legal
representative, heir, estate, successor or assign of any thereof), (2) any
predecessor or successor partnership or corporation (or other entity) of
Landlord or its general partners, either directly or through Landlord or its
predecessor or successor partnership or corporation (or other Person) of
Landlord or its general partners, and (3) any other person. Landlord shall not
attempt to enforce any provision of this Lease against any officer, director or
individual shareholder in his or her individual capacity.

         i. Without the written approval of Landlord and Tenant, no Person other
than Landlord (including its direct and indirect partners), Mortgagee, Tenant
and their respective successors and assigns shall have any rights under this
Lease.

         j. There shall be no merger of the leasehold estate created hereby by
reason of the fact that the same Person may own directly or indirectly, (1) the
leasehold estate created hereby or any interest in this Lease or such leasehold
estate and (2) the fee estate in the Premises. Notwithstanding any such combined
ownership, this Lease shall continue in full force and effect until terminated
by an instrument executed by both Landlord and Tenant.

         k. The Land includes approximately nine and one-quarter (9.25) acres of
land abutting Central Street which is zoned for residential use and which Tenant
wishes to have excluded from this Lease upon completion of the subdivision of
such land (for purposes of this section, the term "subdivision" shall include a
so-called "Approval Not Required" determination by the governmental authorities
having jurisdiction that the plan(s) showing the new lots created does not
require approval under the Subdivision Control Law). Landlord agrees to
cooperate, at Tenant's expense, in obtaining such subdivision and, if obtained,
Landlord agrees to convey such land, for nominal non-monetary consideration, to
Tenant or upon Tenant's written direction, provided that such conveyance will
not result in the Premises being in violation of any applicable law, order,
rule, ordinance or regulation. If Tenant makes application for such subdivision
and approval thereof is granted prior to repayment of the Construction Loan,
Landlord agrees to (i) use commercially reasonable efforts (which efforts shall
not require any payment other than nominal processing or recording costs or the
fees of the construction lender's counsel, which Tenant shall pay) to cause the
construction lender to release the land so subdivided from the Premises securing
the Construction Loan, and (ii) to exclude such land or subdivided portion
thereof from any mortgage thereafter granted by Landlord to the maximum degree
possible and still be able to obtain a 75% loan-to-value permanent loan. If
Tenant has not made application for such subdivision or such approval has not
been granted at the time of the Construction Loan, Landlord agrees that any
mortgage thereafter granted by Landlord shall provide

                                      -51-

<PAGE>   59

for release of such land without the requirement of any payment other than
nominal processing or recording costs, provided that the release of such land
will not reduce the loan value of the Premises. Such costs, and all costs of
such conveyance, including transfer taxes and Landlord's reasonable attorneys'
fees, shall be paid by Tenant.

         l. Tenant shall pay the fees and expenses of any and all professionals
retained by it in connection with the transactions contemplated by the
Construction Contract, this Lease and the Construction Loan Documents, to the
extent that such fees and expenses are not included within the Cost of the
Project.

         m. Tenant agrees to indemnify and hold harmless the Indemnified Parties
from and against any and all liability and loss with respect to or resulting
from the non-payment or delayed payment of any fees and expenses including any
interest or penalties thereon payable by Tenant hereunder.

         n. Whenever in this Lease either party is required to take an action
within a particular time period, delays caused by acts of God, war, major
casualty, strike, labor shortage or other cause beyond the reasonable control of
such party shall not be counted in determining the time in which such
performance must be completed (except in the case of the obligation to pay
money) so long as such party shall, promptly after the commencement of such
delay, shall give the other party notice thereof and estimating the duration
thereof.

         o. If at any time a dispute shall arise as to any amount to be paid by
one party to the other hereunder, the obligor may make payment "under protest",
and such payment shall not be deemed a voluntary payment, and the right of the
obligor to contest its liability for such payment shall survive such payment.

         p. Landlord and Tenant each represent that they have dealt with no
broker, finder or other person who could legally charge a commission in
connection with Landlord's acquisition of the Land or with this Lease, other
than The Binswanger Companies, whose commission shall be included in the Project
Budget and paid as a Cost of the Project.

         q. The relationship between Landlord and Tenant under this Lease is
solely that of landlord and tenant. Landlord shall have no liabilities
whatsoever as an "employer" of Tenant, nor shall Landlord have any
responsibility to provide any benefits normally associated with employee status.
Tenant covenants and agrees that it neither hold itself out as, nor claim to be
an officer, director, partner or employee of Landlord by reason of any term or
provision of this Lease, and that it will not by reason hereof make any claim,
demand or application to or for any right or privilege applicable to an officer,
director, partner or employee of Landlord.

         r. To facilitate Tenant's financing of personal property, Landlord
hereby waives all liens, claims, demands or rights, including the right to levy
or distrain for unpaid rent, which Landlord may have or hereafter acquire on any
personal property located on the Premises. Before any such equipment lessor or
secured party may remove any personal property form the Premises, it shall enter
into an agreement with Landlord to repair any damage to the Premises caused by
such removal.

                                      -52-

<PAGE>   60

                            [SIGNATURE PAGE FOLLOWS]

                                      -53-

<PAGE>   61

         IN WITNESS WHEREOF, the parties have hereunto set their hands under
seal as of the day and year first above written.

                          LANDLORD:

                          ACRE HPC, LLC

                          By ACRE SIMON, L.L.C.
                          Its sole member

                                   By AMERICAN CORPORATE REAL ESTATE, LLC
                                   Its Operating Member

                                   By: /s/ R. Michael Dorsch III
                                      -----------------------------------
                                      R. Michael Dorsch III
                                      Its Authorized Representative

                          TENANT:

                          THE HOLMES GROUP, INC.

                          By: /s/ Ira B. Morgenstern
                             -----------------------------------
                             Name: Ira B. Morgenstern
                             Title: Senior Vice President

<PAGE>   62

                                    EXHIBIT A

                            LEGAL DESCRIPTION - LAND

Beginning at a point on the northerly sideline of Central Street, said point
being the southeasterly corner of the described lot;

Thence running for three courses along the northerly sideline of Central Street:
         along a curve to the right with a radius of 500.00 feet and a length of
         295.79 feet to a point;
         along a curve to the left with a radius of 525.00 feet and a length of
         306.82 feet to a point; N 77(degree) 47' 49" W a distance of 310.39
         feet to a point;

Thence turning and running by land of Buchanan N 04(degree) 36' 24" E a distance
of 578.65 feet to a drill hole;

Thence turning and running by land of Domingos along the wall for five courses:
         N 10(degree) 31' 26" W a distance of 29.85 feet to a drill hole;
         N 12(degree) 28' 53" W a distance of 398.14 feet to a drill hole;
         N 12(degree) 55' 11" W a distance of 241.06 feet to a drill hole;
         N 13(degree) 11' 37" W a distance of 244.30 feet to a drill hole;
         N 10(degree) 18' 04" W a distance of 117.25 feet to a drill hole;

Thence turning and continuing by land of Domingos S 81(degree) 38' 23" E a
distance of 33.73 feet to a drill hole;

Thence running by land of Comeau for two courses:
         S 81(degree) 33' 14" E a distance of 396.00 feet to a point;
         S 80(degree) 34' 42" E a distance of 284.22 feet to a point on the
         westerly sideline of Industrial Road;

Thence turning and running along the sideline of Industrial Road for five
courses:
         S 36(degree) 33' 09" W a distance of 158.77 feet to a point;
         along a curve to the right with a radius of 25.00 feet and length of
         24.71 feet to a point;
         along a curve to the left with a radius of 75.00 feet and a length of
         383.88 feet to a point;
         along a curve to the right with a radius of 25.00 feet and a length of
         24.71 feet to a point;
         N 36(degree) 33' 09" E a distance of 189.51 feet to a point on the
         easterly sideline of Industrial Road;

Thence turning and running by land of Comeau for three courses:
         S 80(degree) 34' 42" E a distance of 29.76 feet to a point;
         S 81(degree) 44' 55" E a distance of 528.89 feet to a drill hole;
         S 79(degree) 52' 36" E a distance of 376.94 feet to a drill hole;

<PAGE>   63

Thence turning and continuing by land of Comeau S 13(degree) 49' 13" W a
distance of 600.18 feet to a drill hole;
Thence running by land of Kenny, Balducci, Pratt and Pratt S 25(degree) 30' 18"
W a distance of 673.00 feet to a drill hole;

Thence running by land of Pratt S 25(degree) 28' 56" W a distance of 508.57 feet
to a point;

Thence turning and running by land of Parrella S 77(degree) 04' 43" W a distance
of 45.83 feet to an iron rod;

Thence continuing by land of Parrella S 00(degree) 45' 24" E a distance of 7.92
feet to the point of beginning.

The above-described parcel contains 2,093,824 square feet, or 48.068 acres, more
or less, as shown on a plan entitled "Plan of Land, Milford, Mass." prepared by
GLM Engineering Consultants, Inc., dated March 12, 1999, and recorded in Plan
Book 746 as Plan 30.

<PAGE>   64

                                    EXHIBIT B

            DESCRIPTION OF EQUIPMENT, PERSONAL PROPERTY AND FIXTURES

                                    ELEVATORS

<PAGE>   65

                                    EXHIBIT C
                             PERMITTED ENCUMBRANCES

<PAGE>   66

                                    EXHIBIT D
                                 PROJECT BUDGET<PAGE>   1

                                                               EXECUTION VERSION

                                                                   EXHIBIT 10.46

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

                            NEXTERA ENTERPRISES, INC.

                                CREDIT AGREEMENT

                          Dated as of December 30, 1999

                     BANKBOSTON, N.A., Administrative Agent

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

                       BANCBOSTON ROBERTSON STEPHENS INC.,
                Co-Adviser, Co-Lead Arranger and Co-Book Manager

                         BANC OF AMERICA SECURITIES LLC,
                               Syndication Agent,
                Co-Adviser, Co-Lead Arranger and Co-Book Manager

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

<PAGE>   2

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>

                                                                                                            Page
                                                                                                            ----
<S>                                                                                                          <C>
1.   Definitions; Certain Rules of Construction...............................................................1
2.   The Credits.............................................................................................25
     2.1.     Revolving Credit...............................................................................25
              2.1.1.   Revolving Loan........................................................................25
              2.1.2.   Maximum Amount of Revolving Credit....................................................25
              2.1.3.   Borrowing Requests....................................................................26
              2.1.4.   Revolving Notes.......................................................................26
     2.2.     Acquisition Credit.............................................................................26
              2.2.1.   Acquisition Loan......................................................................26
              2.2.2.   Maximum Amount of Acquisition Credit..................................................27
              2.2.3.   Borrowing Requests.  .................................................................27
              2.2.4.   Acquisition Notes.....................................................................28
     2.3.     Letters of Credit..............................................................................28
              2.3.1.   Issuance of Letters of Credit.........................................................28
              2.3.2.   Requests for Letters of Credit........................................................28
              2.3.3.   Form and Expiration of Letters of Credit..............................................29
              2.3.4.   Lenders' Participation in Letters of Credit...........................................29
              2.3.5.   Reimbursement of Payment..............................................................29
              2.3.6.   UCP; ISP..............................................................................29
              2.3.7.   Subrogation...........................................................................31
              2.3.8.   Modification, Consent, etc............................................................31
     2.4.     Application of Proceeds........................................................................31
              2.4.1.   Revolving Loan........................................................................31
              2.4.2.   Acquisition Loan......................................................................31
              2.4.3.   Letters of Credit.....................................................................32
              2.4.4.   Specifically Prohibited Applications..................................................32
     2.5.     Option to Extend Maturities of Credits.........................................................32
     2.6.     Settlement under the Cash Management Agreement.................................................32
3.   Interest; LIBOR Pricing Options; Fees...................................................................33
     3.1.     Interest.......................................................................................33
     3.2.     LIBOR Pricing Options..........................................................................33
              3.2.1.   Election of LIBOR Pricing Options.....................................................33
              3.2.2.   Notice to Lenders and the Company.....................................................34
              3.2.3.   Selection of LIBOR Interest Periods...................................................34
              3.2.4.   Reimbursement of Breakage Costs.......................................................35
              3.2.5.   Violation of Legal Requirements.......................................................35
              3.2.6.   Funding Procedure.....................................................................36
     3.3.     Commitment Fees................................................................................36
              3.3.1.   Revolving Credit Commitment Fee.......................................................36
</TABLE>

                                      -i-

<PAGE>   3

<TABLE>

<S>                                                                                                          <C>
              3.3.2.   Acquisition Credit Commitment Fee.....................................................36
     3.4.     Letter of Credit Fees..........................................................................36
     3.5.     Changes in Circumstances; Yield Protection.....................................................37
              3.5.1.   Reserve Requirements, etc.............................................................37
              3.5.2.   Taxes.................................................................................37
              3.5.3.   Capital Adequacy......................................................................38
              3.5.4.   Regulatory Changes....................................................................38
              3.5.5.   Compensation Claims...................................................................38
              3.5.6.   Mitigation............................................................................39
     3.6.     Computations of Interest and Fees..............................................................39
4.   Payment.................................................................................................39
     4.1.     Payment at Maturity............................................................................39
     4.2.     Contingent Required Prepayments................................................................39
              4.2.1.   Excess Credit Exposure................................................................39
              4.2.2.   Net Asset Sale Proceeds...............................................................40
              4.2.3.   Net Debt Proceeds.....................................................................40
              4.2.4.   Net Equity Proceeds...................................................................40
              4.2.5.   Cash Management Agreement.............................................................40
     4.3.     Voluntary Prepayments..........................................................................40
     4.4.     Letters of Credit..............................................................................40
     4.5.     Reborrowing; Application of Payments, etc......................................................41
              4.5.1.   Reborrowing...........................................................................41
              4.5.2.   Order of Application..................................................................41
              4.5.3.   Payments for Lenders..................................................................41
5.   Conditions to Extending Credit..........................................................................41
     5.1.     Conditions on Initial Closing Date.............................................................41
              5.1.1 .  Notes.................................................................................42
              5.1.2.   Payment of Fees.......................................................................42
              5.1.3.   Legal Opinions........................................................................42
              5.1.4.   Guarantee and Security Agreement......................................................42
              5.1.5.   Perfection of Security................................................................42
              5.1.6.   Subordination Agreement...............................................................42
              5.1.7.   Solvency..............................................................................43
              5.1.8.   Termination of Prior Credit Agreement.................................................43
              5.1.9.   Proper Proceedings....................................................................43
              5.1.10.  General...............................................................................44
     5.2.     Conditions to Each Extension of Credit.........................................................44
              5.2.1.   Officer's Certificate.................................................................44
              5.2.2.   Legality, etc.........................................................................44
6.   General Covenants.......................................................................................44
     6.1.     Taxes and Other Charges; Accounts Payable......................................................45
              6.1.1.   Taxes and Other Charges...............................................................45
              6.1.2.   Accounts Payable......................................................................45
</TABLE>

                                      -ii-

<PAGE>   4

<TABLE>

<S>                                                                                                         <C>
    6.2.     Conduct of Business, etc.......................................................................45
             6.2.1.   Types of Business.....................................................................45
             6.2.2.   Maintenance of Properties.............................................................45
             6.2.3.   Statutory Compliance..................................................................46
             6.2.4.   Compliance with Material Agreements...................................................46
    6.3.     Insurance......................................................................................46
             6.3.1.   Business Interruption Insurance.......................................................46
             6.3.2.   Property Insurance....................................................................46
             6.3.3.   Liability Insurance...................................................................46
    6.4.     Financial Statements and Reports...............................................................47
             6.4.1.   Annual Reports........................................................................47
             6.4.2.   Quarterly Reports.....................................................................48
             6.4.3.   Monthly Reports.......................................................................49
             6.4.4.   Other Reports.........................................................................49
             6.4.5.   Notice of Litigation, Defaults, etc...................................................50
             6.4.6.   ERISA Reports.........................................................................50
             6.4.7.   Other Information.....................................................................51
    6.5.     Certain Financial Tests........................................................................51
             6.5.1.   Consolidated Total Debt to Consolidated Pro Forma EBITDA..............................51
             6.5.2.   Consolidated Pro Forma EBITDA Minus Capital Expenditures to
                      Consolidated Pro Forma Interest Expense ..............................................51
             6.5.3.   Quick Ratio...........................................................................51
             6.5.4.   Consolidated Adjusted Net Worth.......................................................52
    6.6.     Indebtedness...................................................................................52
    6.7.     Guarantees; Letters of Credit..................................................................53
    6.8.     Liens..........................................................................................53
    6.9.     Investments and Acquisitions...................................................................55
    6.10.    Distributions..................................................................................57
    6.11.    Asset Dispositions and Mergers.................................................................58
    6.12.    Issuance of Stock by Subsidiaries; Subsidiary Distributions....................................59
             6.12.1.   Issuance of Stock by Subsidiaries....................................................59
             6.12.2.   No Restrictions on Subsidiary Distributions..........................................59
    6.13.    Voluntary Prepayments of Other Indebtedness....................................................59
    6.14.    Derivative Contracts...........................................................................59
    6.15.    Negative Pledge Clauses........................................................................59
    6.16.    ERISA, etc.....................................................................................60
    6.17.    Transactions with Affiliates...................................................................60
    6.18.    Restricted Operations of Cranberry Hill Capital................................................60
7.  Representations and Warranties..........................................................................60
    7.1.     Organization and Business......................................................................60
             7.1.1.   The Company...........................................................................60
             7.1.2.   Subsidiaries..........................................................................61
             7.1.3.   Qualification.........................................................................61
</TABLE>

                                     -iii-

<PAGE>   5

<TABLE>
<S>                                                                                                         <C>
             7.1.4.   Capitalization........................................................................62
    7.2.     Financial Statements and Other Information; Material Agreements................................62
             7.2.1.   Financial Statements and Other Information............................................62
             7.2.2.   Material Agreements...................................................................63
    7.3.     Agreements Relating to Financing Debt, Investments, etc........................................63
    7.4.     Changes in Condition...........................................................................64
    7.5.     Title to Assets................................................................................64
    7.6.     Operations in Conformity With Law, etc.........................................................64
    7.7.     Litigation.....................................................................................64
    7.8.     Authorization and Enforceability...............................................................65
    7.9.     No Legal Obstacle to Agreements................................................................65
    7.10.    Defaults.......................................................................................66
    7.11.    Licenses, etc..................................................................................66
    7.12.    Tax Returns....................................................................................66
    7.13.    Certain Business Representations...............................................................66
             7.13.1.  Labor Relations.......................................................................66
             7.13.2.  Antitrust.............................................................................67
             7.13.3.  Year 2000 Issues......................................................................67
             7.13.4.  Future Expenditures...................................................................67
    7.14.    Pension Plans..................................................................................67
    7.15.    Environmental Regulations......................................................................67
             7.15.1.  Environmental Compliance..............................................................67
             7.15.2.  Environmental Condition of Properties.................................................68
    7.16.    Government Regulation; Margin Stock............................................................68
             7.16.1.  Government Regulation.................................................................68
             7.16.2.  Margin Stock..........................................................................68
    7.17.    Disclosure.....................................................................................68
8.  Defaults................................................................................................68
    8.1.     Events of Default..............................................................................68
             8.1.1.   Payment...............................................................................68
             8.1.2.   Specified Covenants...................................................................69
             8.1.3.   Other Covenants.......................................................................69
             8.1.4.   Representations and Warranties........................................................69
             8.1.5.   Material Financing Debt Cross Default, etc............................................69
             8.1.6.   Ownership; Liquidation; etc...........................................................70
             8.1.7.   Enforceability, etc...................................................................70
             8.1.8.   Judgments.............................................................................71
             8.1.9.   ERISA.................................................................................71
             8.1.10.  Bankruptcy, etc.......................................................................71
    8.2.     Certain Actions Following an Event of Default..................................................72
             8.2.1.   Terminate Obligation to Extend Credit.................................................72
             8.2.2.   Specific Performance; Exercise of Rights..............................................72
             8.2.3.   Acceleration..........................................................................72
</TABLE>

                                      -iv-

<PAGE>   6

<TABLE>

<S>                                                                                                          <C>
              8.2.4.   Enforcement of Payment; Credit Security; Setoff.......................................73
              8.2.5.   Cumulative Remedies...................................................................73
     8.3.     Annulment of Defaults..........................................................................73
     8.4.     Waivers........................................................................................73
9.   Expenses; Indemnity.....................................................................................74
     9.1.     Expenses.......................................................................................74
     9.2.     General Indemnity..............................................................................74
     9.3.     Indemnity With Respect to Letters of Credit....................................................75
10.  Operations; Agent.......................................................................................75
     10.1.    Interests in Credits...........................................................................75
     10.2.    Agent's Authority to Act, etc..................................................................75
     10.3.    Company to Pay Agent, etc......................................................................76
     10.4.    Lender Operations for Advances, Letters of Credit, etc.........................................76
              10.4.1.   Advances.............................................................................76
              10.4.2.   Letters of Credit....................................................................76
              10.4.3.   Agent to Allocate Payments, etc......................................................77
              10.4.4.   Nonperforming Lenders................................................................77
     10.5.    Sharing of Payments, etc.......................................................................78
     10.6.    Agent's Resignation............................................................................78
     10.7.    Concerning the Agent...........................................................................79
              10.7.1.   Action in Good Faith, etc............................................................79
              10.7.2.   No Implied Duties, etc...............................................................79
              10.7.3.   Validity, etc........................................................................79
              10.7.4.   Compliance...........................................................................80
              10.7.5.   Employment of Agents and Counsel.....................................................80
              10.7.6.   Reliance on Documents and Counsel....................................................80
              10.7.7.   Agent's Reimbursement................................................................80
     10.8.    Rights as a Lender.............................................................................80
     10.9.    Independent Credit Decision....................................................................81
     10.10.   Indemnification................................................................................81
11.  Successors and Assigns; Lender Assignments and Participations...........................................81
     11.1.    Assignments by Lenders.........................................................................82
              11.1.1.   Assignees and Assignment Procedures..................................................82
              11.1.2.   Terms of Assignment and Acceptance...................................................83
              11.1.3.   Register.............................................................................84
              11.1.4.   Acceptance of Assignment and Assumption..............................................84
              11.1.5.   Federal Reserve Bank.................................................................84
              11.1.6.   Further Assurances...................................................................84
     11.2.    Credit Participants............................................................................85
     11.3.    Replacement of Lender..........................................................................85
12.  Confidentiality.........................................................................................86
13.  Foreign Lenders.........................................................................................87
14.  Notices.................................................................................................88
</TABLE>

                                      -v-

<PAGE>   7

<TABLE>
<S>                                                                                                          <C>

15.  Amendments, Consents, Waivers, etc......................................................................88
     15.1.    Lender Consents for Amendments.................................................................88
     15.2.    Course of Dealing; No Implied Waivers..........................................................90
16.  General Provisions......................................................................................90
     16.1.    Defeasance.....................................................................................90
     16.2.    No Strict Construction.........................................................................91
     16.3.    Certain Obligor Acknowledgments................................................................91
     16.4.    Venue; Service of Process; Certain Waivers.....................................................91
     16.5.    WAIVER OF JURY TRIAL...........................................................................92
     16.6.    Interpretation; Governing Law; etc.............................................................92
</TABLE>

                                      -vi-
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                                     -viii-

<PAGE>   10

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                                      -ix-

<PAGE>   11

                                                                       Page
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                                       -x-

<PAGE>   12

                                                                       Page
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                                      -xi-

<PAGE>   13

                                    EXHIBITS

2.1.4      -  Revolving Note

2.2.4      -  Acquisition Note

5.1.4      -  Guarantee and Security Agreement

5.1.6      -  Subordination Agreement

5.2.1      -  Officer's Certificate

6.4.       -  Compliance Certificate

6.9.2      -  Foreign Subsidiary Subordination Agreement

7.1        -  Company and its Subsidiaries

7.2.2      -  Material Agreements

7.3        -  Financing Debt, Certain Investments, etc.

7.7        -  Litigation

7.12       -  Tax Matters

7.14       -  Multi-employer and Defined Benefit Plans

7.15       -  Hazardous Material Sites

7.16.2     -  Margin Stock

10.1       -  Percentage Interests

11.1.1     -  Assignment and Acceptance

                                     -xii-

<PAGE>   14

                            NEXTERA ENTERPRISES, INC.

                                CREDIT AGREEMENT

     This Agreement, dated as of December 30, 1999, is among Nextera
Enterprises, Inc., a Delaware corporation, its Subsidiaries from time to time
party hereto, the Lenders from time to time party hereto and BankBoston, N.A.,
both in its capacity as a Lender and in its capacity as administrative agent for
the Lenders. The parties agree as follows:

     RECITALS: Pursuant to this Agreement, the Lenders are extending to the
Company a $15,000,000 revolving credit facility, including a $7,500,000
sub-allotment for Letters of Credit, and a $40,000,000 revolving acquisition
facility. All the credit facilities mature on March 29, 2002. These credit
facilities are guaranteed by the Company's Domestic Subsidiaries and are secured
by liens on substantially all the assets of the Company and its Domestic
Subsidiaries (excluding Cranberry Hill Capital, LLC and 34% of the voting stock
of Foreign Subsidiaries owned by the Company and its Domestic Subsidiaries). The
proceeds of these credit facilities may be used to refinance existing
Indebtedness, to make certain acquisitions and for general corporate purposes,
each as provided herein.

1.   DEFINITIONS; CERTAIN RULES OF CONSTRUCTION. Certain capitalized terms are
used in this Agreement and in the other Credit Documents with the specific
meanings defined below in this Section 1. Except as otherwise explicitly
specified to the contrary or unless the context clearly requires otherwise, (a)
the capitalized term "Section" refers to sections of this Agreement, (b) the
capitalized term "Exhibit" refers to exhibits to this Agreement, (c) references
to a particular Section include all subsections thereof, (d) the word
"including" shall be construed as "including without limitation", (e) accounting
terms not otherwise defined herein have the meaning provided under GAAP, (f)
references to a particular statute or regulation include all rules and
regulations thereunder and any successor statute, regulation or rules, in each
case as from time to time in effect, (g) references to a particular Person
include such Person's successors and assigns to the extent not prohibited by
this Agreement and the other Credit Documents and (h) references to "Dollars" or
"$" mean United States Funds. References to "the date hereof" mean the date
first set forth above.

     "ACCUMULATED BENEFIT OBLIGATIONS" means the actuarial present value of the
accumulated benefit obligations under any Plan, calculated in accordance with
Statement No. 87 of the Financial Accounting Standards Board.

     "ACQUISITION LOAN" is defined in Section 2.2.4.

     "ACQUISITION NOTES" is defined in Section 2.2.4.

     "AFFECTED LENDER" is defined in Section 11.3.

<PAGE>   15

     "AFFILIATE" means, with respect to the Company (or any other specified
Person), any other Person directly or indirectly controlling, controlled by or
under direct or indirect common control with the Company (or such specified
Person), and shall include (a) any officer or director or general partner of the
Company (or such specified Person), (b) any Person of which the Company (or such
specified Person) or any Affiliate (as defined in clause (a) above) of the
Company (or such specified Person) shall, directly or indirectly, beneficially
own either (i) at least 10% of the outstanding equity securities having the
general power to vote or (ii) at least 10% of all equity interests or (c) any
Person directly or indirectly controlling the Company (or such specified Person)
through a management agreement, voting agreement or other contract.

     "AGENT" means BankBoston in its capacity as administrative agent for the
Lenders hereunder, as well as its successors and assigns in such capacity
appointed pursuant to Section 10.6.

     "AGREEMENT" means this Credit Agreement as from time to time amended,
modified and in effect.

     "APPLICABLE MARGIN" means (a) from the Initial Closing Date through the
fifth Banking Day after which the Company delivers quarterly financial
statements in accordance with Section 6.4.2 for the fiscal quarter ending March
31, 2000, a percentage no lower than the percentage set forth below as Level I
and (b) on each day thereafter, the percentage in the table below set opposite
the Reference Leverage Ratio for such date:

<TABLE>
<CAPTION>
                                                  Base Rate                   LIBOR             Commitment
      Reference Leverage Ratio                Applicable Margin         Applicable Margin        Fee Rate
      ------------------------                -----------------         -----------------        --------
<S>   <C>                                             <C>                     <C>                 <C>
I.    Less than 3.00:1.00 but greater                 1.50%                   2.75%               0.50%
      than or equal to 2.50:1.00

II.   Less than 2.50:1.00 but greater                 1.00                    2.25                0.50
      than or equal to 2.00:1.00

III.  Less than 2.00:1.00 but greater                 0.75                    2.00                0.45
      than or equal to 1.50:1.00

IV.   Less than 1.50:1.00 but greater                 0.50                    1.75                0.40
      than or equal to 1.00:1.00

V.    Less than 1.00:1.00                             0.25                    1.50                0.35
</TABLE>

                                      -2-

<PAGE>   16

Changes in the Applicable Margin shall occur on the fifth Banking Day after
quarterly financial statements have been furnished to the Agent in accordance
with Sections 6.4.1 or 6.4.2 from time to time. In the event that the financial
statements required to be delivered pursuant to Section 6.4.1 or 6.4.2, as
applicable, are not delivered when due, then during the period from the fifth
Banking Day following the date such financial statements were due until the
fifth Banking Day following the date on which they are actually delivered, the
Applicable Margin shall be the maximum amount set forth in the table above.

     "APPLICABLE RATE" means, at any date, the sum of:

          (a) (i) with respect to each portion of the Loan subject to a LIBOR
          Pricing Option, the sum of the Applicable Margin (which may change
          during the LIBOR Interest Period for such LIBOR Pricing Option in
          accordance with the definition of "Applicable Margin") PLUS the LIBOR
          Rate with respect to such LIBOR Pricing Option;

               (ii) with respect to each other portion of the Loan, the sum of
          the Applicable Margin PLUS the Base Rate;

     PLUS (b) an additional 2% per annum effective on the day the Agent provides
          written notice to the Company that the interest rates hereunder are
          increasing as a result of the occurrence and continuance of an Event
          of Default until the earlier of such time as (i) such Event of Default
          is no longer continuing or (ii) such Event of Default is deemed no
          longer to exist, in each case pursuant to Section 8.3.

     "ASSIGNEE" is defined in Section 11.1.1.

     "ASSIGNMENT AND ACCEPTANCE" is defined in Section 11.1.1.

     "BANKBOSTON" means BankBoston, N.A.

     "BANKING DAY" means any day other than Saturday, Sunday or a day on which
banks in Boston, Massachusetts are authorized or required by law or other
governmental action to close and, if such term is used with reference to a LIBOR
Pricing Option, any day on which dealings are effected in the LIBOR Deposits in
question by first-class banks in the inter-bank LIBOR markets in New York, New
York.

                                      -3-

<PAGE>   17

     "BANKRUPTCY CODE" means Title 11 of the United States Code.

     "BANKRUPTCY DEFAULT" means an Event of Default referred to in Section
8.1.10.

     "BASE RATE" means, on any date, the greater of (a) the rate of interest
announced by BankBoston at the Boston Office as its Base Rate or (b) the sum of
1/2% PLus the Federal Funds Rate.

     "BOSTON OFFICE" means the principal banking office of BankBoston in Boston,
Massachusetts.

     "BY-LAWS" means all written by-laws, rules, regulations and all other
documents relating to the management, governance or internal regulation of any
Person other than an individual, all as from time to time in effect.

     "CAPITAL EXPENDITURES" means, for any period, amounts added or required to
be added to the property, plant and equipment or other fixed assets account on
the Consolidated balance sheet of the Company and its Subsidiaries, prepared in
accordance with GAAP, including expenditures in respect of (a) the acquisition,
construction, improvement or replacement of land, buildings, machinery,
equipment, leaseholds and any other real or personal property, (b) to the extent
not included in clause (a) above, materials, contract labor and direct labor
relating thereto (excluding amounts properly expensed as repairs and maintenance
in accordance with GAAP) and (c) software development costs to the extent not
expensed; PROVIDED, HOWEVER, that Capital Expenditures shall not include (i) the
purchase price for the acquisition of another Person (or substantially all the
assets of another Person) as a going concern permitted by Section 6.9 or (ii)
expenditures made with the proceeds of condemnation awards or insurance claims.

     "CAPITALIZED LEASE" means any lease which is required to be capitalized on
the balance sheet of the lessee in accordance with GAAP, including Statement
Nos. 13 and 98 of the Financial Accounting Standards Board.

     "CAPITALIZED LEASE OBLIGATIONS" means the amount of the liability
reflecting the aggregate discounted amount of future payments under all
Capitalized Leases calculated in accordance with GAAP, including Statement Nos.
13 and 98 of the Financial Accounting Standards Board.

     "CASH EQUIVALENTS" means:

          (1)  negotiable certificates of deposit, time deposits (including
     sweep accounts), demand deposits and bankers' acceptances having a maturity
     of nine months

                                      -4-

<PAGE>   18

     or less and issued by any United States financial institution having
     capital and surplus and undivided profits aggregating at least $100,000,000
     and rated at least Prime-1 by Moody's or A-1 by S&P or issued by any
     Lender;

          (2)  corporate obligations having a maturity of nine months or less
     and rated at least Prime-1 by Moody's or A-1 by S&P or issued by any
     Lender;

          (3)  any direct obligation of the United States of America or any
     agency or instrumentality thereof, or of any state or municipality thereof,
     (i) which has a remaining maturity at the time of purchase of not more than
     one year or which is subject to a repurchase agreement with any Lender (or
     any other financial institution referred to in clause (a) above)
     exercisable within one year from the time of purchase and (ii) which, in
     the case of obligations of any state or municipality, is rated at least Aaa
     by Moody's or AAA by S&P;

          (4)  any mutual fund or other pooled investment vehicle rated at least
     Aa by Moody's or AA by S&P which invests principally in obligations
     described above; and

          (5)  any Investment by a Foreign Subsidiary in its local jurisdiction
     comparable to the items described above.

     "CASH MANAGEMENT AGREEMENT" means any Cash Management Master Agreement
entered into between the Agent and the Company from time to time, as from time
to time in effect, including all schedules and addenda thereto, relating to cash
management, sweep account and other similar services provided by the Agent to
the Company to facilitate daily advances and repayments in connection with the
Company's operations and working capital requirements.

     "CERCLA" means the federal Comprehensive Environmental Response,
Compensation and Liability Act of 1980.

     "CHARTER" means the articles of organization, certificate of incorporation,
statute, constitution, joint venture agreement, partnership agreement, trust
indenture, limited liability company agreement or other charter document of any
Person other than an individual, each as from time to time in effect.

     "CLOSING DATE" means the Initial Closing Date and each other date on which
any extension of credit is made pursuant to Sections 2.1, 2.2 or 2.3.

     "CODE" means the federal Internal Revenue Code of 1986.

                                      -5-

<PAGE>   19

     "COMMITMENT" means, with respect to any Lender, such Lender's obligations
to extend the respective credits contemplated by Section 2 and its interests in
such credits at any time outstanding. The original Commitments are set forth in
Exhibit 10.1 and the subsequent Commitments are recorded from time to time in
the Register.

     "COMMITMENT FEE RATE" means, at any date, the sum of (a) the rate per annum
equal to the Applicable Margin with respect to the Commitment Fee Rate PLUS (b)
an additional 2% per annum effective on the day the Agent provides written
notice to the Company that the interest rates hereunder are increasing as a
result of the occurrence and continuance of an Event of Default until the
earlier of such time as (i) such Event of Default is no longer continuing or
(ii) such Event of Default is deemed no longer to exist, in each case pursuant
to Section 8.3.

     "COMPANY" means Nextera Enterprises, Inc., a Delaware corporation.

     "COMPUTATION COVENANTS" means Sections 6.5, 6.6.7, 6.6.13, 6.9.5, 6.9.8,
6.10.2, 6.10.3, 6.11.6 and 6.11.7.

     "CONSOLIDATED" and "CONSOLIDATING", when used with reference to any term,
mean that term as applied to the accounts of the Company (or other specified
Person) and all of its Subsidiaries (or other specified group of Persons), or
such of its Subsidiaries as may be specified, consolidated (or combined) or
consolidating (or combining), as the case may be, in accordance with GAAP and
with appropriate deductions for minority interests in Subsidiaries.

     "CONSOLIDATED ADJUSTED POSITIVE CONSOLIDATED NET INCOME" means, for any
period, the amount, if any, by which the sum of Consolidated Net Income PLUS
Consolidated Adjustment Items exceeds zero.

     "CONSOLIDATED ADJUSTED NET WORTH" means, at any date, the sum of
Consolidated Net Worth PLUS the cumulative amount of all Consolidated Adjustment
Items incurred after June 30, 1999.

     "CONSOLIDATED ADJUSTMENT ITEMS" means, for any period, the remainder of the
following items (in each case net of the tax benefit or expense provided by each
item): (a) to the extent such amounts have reduced Consolidated Net Income for
such period (i) non-cash compensation charges associated with the issuance of
stock options or other equity instruments to employees or third parties; PLUS
(ii) non-cash charges associated with the write-off of in-process research and
development costs in connection with acquisitions consummated within 100 days of
such write-off; PLUS (iii) the non-cash portion of restructuring charges
incurred after June 30, 1999; MINUS (b) to the extent such amounts have not
reduced Consolidated Net Income for such period, the cash portion of
restructuring charges incurred after June 30, 1999 and paid during such period.

                                      -6-

<PAGE>   20

     "CONSOLIDATED CURRENT LIABILITIES" means, at any date, all amounts that are
or should be carried as current liabilities on the balance sheet of the Company
and its Subsidiaries determined in accordance with GAAP on a Consolidated basis,
including the current portion of all long-term Financing Debt.

     "CONSOLIDATED EBITDA" means, for any period, the total of:

          (a)  Consolidated Net Income;

     PLUS (b)  all amounts deducted in computing such Consolidated Net Income in
               respect of:

               (1) depreciation, amortization and other non-cash charges
          (including non-cash transaction charges related to acquisitions
          permitted by Section 6.9),

               (2) interest expense,

               (3) taxes based upon or measured by net income,

               (4) non-recurring cash transaction costs related to acquisitions
          permitted by Section 6.9 and

               (5) management fees charged by Knowledge Universe for periods
          ending prior to May 19, 1999;

     MINUS (c) all cash payments made during such period on account of reserves,
     restructuring charges and other non-cash charges deducted from Consolidated
     Net Income in a previous period;

     MINUS (d) all amounts included in Consolidated Net Income in respect of
     deferred income tax benefits and other non-cash income items (other than
     accounts receivable and other normal current accrued income items in the
     ordinary course of business).

     "CONSOLIDATED INTEREST EXPENSE" means, for any period, the total of:

           (a) the aggregate amount of interest, including commitment fees and
     other financing fees and costs, payments in the nature of interest under
     Capitalized Leases and net payments under Hedge Agreements, accrued by the
     Company and its Subsidiaries (whether such interest is reflected as an item
     of expense or capitalized) in accordance with GAAP on a Consolidated basis,

                                      -7-

<PAGE>   21

     MINUS (b) to the extent otherwise included in clause (a) above, the
     amortization of deferred financing fees and costs, original issue discount
     relating to Indebtedness and accrued interest on Indebtedness not paid in
     cash to the extent permitted by the terms, including subordination terms,
     of such Indebtedness (including PIK Interest),

     PLUS (c) actual cash payments with respect to accrued and unpaid interest
     (including PIK Interest) that has previously reduced Consolidated Interest
     Expense pursuant to clause (b) above,

     MINUS (d) interest paid on the Debentures and bridge financing Indebtedness
     at the closing of the initial underwritten public offering of the Company's
     stock.

     "CONSOLIDATED NET INCOME" means, for any period, the net income (or loss)
of the Company and its Subsidiaries, determined in accordance with GAAP on a
Consolidated basis; PROVIDED, HOWEVER, that Consolidated Net Income shall not
include:

          (a) the income (or loss) of any Person accrued prior to the date such
     Person becomes a Subsidiary or is merged into or consolidated with the
     Company or any of its Subsidiaries;

          (b) the income (or loss) of any Person (other than a Subsidiary) in
     which the Company or any of its Subsidiaries has an ownership interest;
     PROVIDED, HOWEVER, that (i) Consolidated Net Income shall include amounts
     in respect of the income of such Person when actually received in cash by
     the Company or such Subsidiary in the form of dividends or similar
     Distributions and (ii) Consolidated Net Income shall be reduced by the
     aggregate amount of all Investments, regardless of the form thereof, made
     by the Company or any of its Subsidiaries in such Person for the purpose of
     funding any deficit or loss of such Person;

          (c) all amounts included in computing such net income (or loss) in
     respect of (i) the write-up of any asset on or after June 30, 1999 or (ii)
     the retirement of any Indebtedness or equity at less than face value after
     June 30, 1999;

          (d) extraordinary and nonrecurring gains or losses;

          (e) the income of any Subsidiary to the extent the payment of such
     income in the form of a Distribution or repayment of Indebtedness to the
     Company or a Wholly Owned Subsidiary is not permitted, whether on account
     of any Charter or By-law restriction, any agreement, instrument, deed or
     lease or any law, statute, judgment, decree or governmental order, rule or
     regulation applicable to such Subsidiary; and

          (6) any after-tax gains or losses attributable to returned surplus
     assets of any Plan.

                                      -8-

<PAGE>   22

     "CONSOLIDATED NET WORTH" means, at any date, the total of:

          (a) stockholders' equity of the Company and its Subsidiaries
     determined in accordance with GAAP on a Consolidated basis, excluding the
     effect of any foreign currency translation adjustments;

     MINUS (b) the amount by which such stockholders' equity has been increased
     after June 30, 1999 by the items excluded from Consolidated Net Income
     pursuant to clauses (a) through (f) of the definition of Consolidated Net
     Income;

     MINUS (c) to the extent not already deducted from the amount in clause (a)
     above, (i) treasury stock, (ii) receivables due from an employee stock
     ownership plan and (iii) Guarantees of Indebtedness incurred by an employee
     stock ownership plan.

     "CONSOLIDATED PRO FORMA EBITDA" means, for any period, the sum of:

           (a) Consolidated EBITDA;

     PLUS  (b) in the event during such period the Company or any of its
     Subsidiaries makes an acquisition permitted by Section 6.9 (whether by
     stock purchase, asset purchase, merger, consolidation or otherwise),
     Consolidated EBITDA of such acquired Person (or acquired assets) accrued
     during such period prior to the date of such acquisition; PROVIDED, in
     determining the Consolidated EBITDA of such acquired Person (or acquired
     assets) for such period, such Consolidated EBITDA will be adjusted as
     follows: actions taken or anticipated to be taken by the Company and/or its
     Subsidiaries prior to the first anniversary of the related acquisition date
     (such as changes in compensation and other Affiliate payments) that result
     in a cost savings with respect to such acquired Person (or acquired assets)
     will be deemed to have been taken on the first day of such period for which
     Consolidated EBITDA is being determined (with the intent that such cost
     savings be effectively annualized by extrapolation from the demonstrated or
     anticipated cost savings since the related acquisition date). Such
     adjustments in such Consolidated EBITDA will be subject to the approval of
     the Required Lenders, such approval not to be unreasonably withheld; and

     MINUS (c) in the event during such period the Company or any of its
     Subsidiaries disposes of any assets permitted by Section 6.11 (whether by
     sale, merger, consolidation or otherwise), Consolidated EBITDA of such
     disposed assets accrued during such period prior to the date of such
     disposition.

     "CONSOLIDATED PRO FORMA INTEREST EXPENSE" means, for any period, the sum
of:

                                      -9-

<PAGE>   23

           (a)  Consolidated Interest Expense;

     PLUS  (b) in the event the Company or any of its Subsidiaries makes an
     acquisition during such period, Consolidated Interest Expense deemed to
     accrue on Indebtedness assumed or incurred as a result of such acquisition
     from the beginning of such period to the date of such acquisition, which
     deemed Consolidated Interest Expense shall be calculated by assuming that
     (i) any Indebtedness assumed or incurred as a result of such acquisition
     was assumed or incurred on the first day of such period and (ii) the
     interest rate applicable to such Indebtedness prior to such acquisition was
     the same as the interest rate applicable to such Indebtedness on the date
     of such acquisition;

     MINUS (c) in the event the Company or any of its Subsidiaries disposes of
     any assets permitted by Section 6.11 (other than Sections 6.11.1 through
     6.11.6) during such period, Consolidated Interest Expense accrued on any
     Indebtedness repaid as a result of such disposition.

     "CONSOLIDATED TOTAL DEBT" means, at any date, all Financing Debt of the
Company and its Subsidiaries on a Consolidated basis.

     "CRANBERRY HILL CAPITAL" means Cranberry Hill Capital, LLC, a Delaware
limited liability company of which Nextera Business Performance Solutions, Inc.
is the sole member.

     "CREDIT DOCUMENTS" means:

          (a) this Agreement, the Notes, each Letter of Credit, each draft
     presented or accepted under a Letter of Credit, the Guarantee and Security
     Agreement, the Cash Management Agreement, the Subordination Agreement, the
     fee agreement contemplated by Section 5.1.2 and each Hedge Agreement
     provided by a Lender (or an Affiliate of a Lender) to the Company or any of
     its Subsidiaries, each as from time to time in effect; and

          (b) any other present or future agreement or instrument from time to
     time entered into among the Company, any of its Subsidiaries or any other
     Obligor, on one hand, and the Agent, any Letter of Credit Issuer or all the
     Lenders, on the other hand, relating to, amending or modifying this
     Agreement or any other Credit Document referred to above or which is stated
     to be a Credit Document, each as from time to time in effect.

     "CREDIT OBLIGATIONS" means all present and future liabilities, obligations
and Indebtedness of the Company, any of its Subsidiaries or any other Obligor
owing to the Agent or any Lender (or any Affiliate of a Lender) under or in
connection with this Agreement or any other Credit Document, including
obligations in respect of principal, interest, reimbursement

                                      -10-

<PAGE>   24

obligations under Letters of Credit and Hedge Agreements provided by a Lender
(or an Affiliate of a Lender), commitment fees, Letter of Credit fees, amounts
provided for in Sections 3.2.4, 3.5 and 9 and other fees, charges, indemnities
and expenses from time to time owing hereunder or under any other Credit
Document (all whether accruing before or after a Bankruptcy Default and
regardless of whether allowed as a claim in bankruptcy or similar proceedings).

     "CREDIT PARTICIPANT" is defined in Section 11.2.

     "CREDIT REALLOCATION" means the election by the Company, upon seven Banking
Days prior written notice to the Agent at a time when no Default exists,
irrevocably to transfer unused availability from the revolving credit facility
in Section 2.1 to the acquisition credit facility in Section 2.2 (or from such
acquisition facility to such revolving credit facility); PROVIDED, HOWEVER, that
no more than $5,000,000 of unused availability may be transferred between such
credit facilities at any one time, and in no event shall such a transfer occur
more than twice in any year.

     "CREDIT SECURITY" means all assets now or from time to time hereafter
subjected to a security interest, mortgage or charge (or intended or required so
to be subjected pursuant to the Guarantee and Security Agreement or any other
Credit Document) to secure the payment or performance of any of the Credit
Obligations on a pari passu basis, including the assets described in section 3.1
of the Guarantee and Security Agreement.

     "CURRENCY EXCHANGE AGREEMENT" means any currency swap, foreign exchange
contract or similar arrangement providing for protection against fluctuations in
currency exchange rates, either generally or under specific contingencies.

     "DEBENTURES" means the various debentures owed by the Company to certain
individuals and affiliates of Knowledge Enterprises, in the aggregate principal
amount of $30,001,000 as of the date hereof, all as amended and modified through
the date hereof and previously furnished to the Agent, with such subsequent
amendments and modifications as are entered into in accordance with Section
6.2.4.

     "DEFAULT" means any Event of Default and any event or condition which with
the passage of time or giving of notice, or both, would become an Event of
Default, including the filing against the Company, any of its Subsidiaries or
any other Obligor of a petition commencing an involuntary case under the
Bankruptcy Code.

     "DELINQUENCY PERIOD" is defined in Section 10.4.4.

     "DELINQUENT PAYMENT" is defined in Section 10.4.4.

                                      -11-

<PAGE>   25

     "DISTRIBUTION" means, with respect to the Company (or other specified
Person):

          (a) the declaration or payment of any dividend or distribution on or
     in respect of any shares of any class of capital stock of or other equity
     interests in the Company (or such specified Person);

          (b) the purchase, redemption or other retirement for value of any
     shares of any class of capital stock of or other equity interest in the
     Company (or such specified Person) or any of its Subsidiaries, or of
     options, warrants or other rights for the purchase of such shares,
     directly, indirectly through a Subsidiary or corporate parent or otherwise;

          (c) any other distribution on or in respect of any shares of any class
     of capital stock of or equity or other beneficial interest in the Company
     (or such specified Person);

          (d) any payment of principal or interest with respect to, or any
     purchase, redemption or defeasance of, any Financing Debt of the Company
     (or such specified Person) or any of its Subsidiaries which by its terms or
     the terms of any agreement is subordinated to the payment of the Credit
     Obligations; and

          (e) any payment, loan or advance by the Company (or such specified
     Person) to, or any other Investment by the Company (or such specified
     Person) in, the holder of any shares of any class of capital stock of or
     equity interest in the Company (or such specified Person) or any of its
     Subsidiaries, or any Affiliate of such holder (including the payment of
     management and transaction fees and expenses);

PROVIDED, HOWEVER, that the term "Distribution" shall not include (i) dividends
payable in perpetual common stock of or other similar equity interests in the
Company (or such specified Person) or (ii) payments in the ordinary course of
business in respect of (A) reasonable compensation paid to employees, officers
and directors, (B) advances and reimbursements to employees for travel expenses,
drawing accounts, relocation costs and similar expenditures or (C) payments or
accounts payable, in each case for services rendered or goods sold by,
non-Affiliates that own capital stock of or other equity interests in the
Company (or such specified Person) or any of its Subsidiaries.

     "DOMESTIC SUBSIDIARY" means any Subsidiary that is not a Foreign
Subsidiary.

     "ELIGIBLE ASSIGNEE" means (a) a Lender, (b) an Affiliate of a Lender, (c) a
Related Fund and (d) subject to the prior approval of the Agent and, so long as
no Event of Default shall have occurred and be continuing, the Company, such
approval by the Agent and the Company not to be unreasonably withheld or
delayed:

                                      -12-

<PAGE>   26

          (i) a commercial bank organized under the laws of the United States of
     America, or any state thereof, and having total assets in excess of
     $500,000,000;

          (ii) a savings and loan association or savings bank organized under
     the laws of the United States of America, or any state thereof, and having
     total assets in excess of $500,000,000;

          (iii) a commercial bank organized under the laws of any other country
     that is a member of the Organization for Economic Cooperation and
     Development or has concluded special lending arrangements with the
     International Monetary Fund associated with its General Arrangements to
     Borrow or of the Cayman Islands, or a political subdivision of any such
     country, and having total assets in excess of $500,000,000, so long as such
     bank is acting through a branch or agency located in the United States of
     America;

          (iv) the central bank of any country that is a member of the
     Organization for Economic Cooperation and Development; and

          (v) a finance company, insurance company or other financial
     institution or fund (whether a corporation, partnership, trust or other
     entity) that is engaged in making, purchasing or otherwise investing in
     commercial loans in the ordinary course of its business and having total
     assets in excess of $500,000,000;

PROVIDED, HOWEVER, that (A) no Person shall qualify as an Eligible Assignee with
respect to assignments of obligations or Commitments in connection with Letters
of Credit unless such Person qualifies under clauses (d)(i) or (d)(iii) above
and (B) no Obligor or Affiliate of an Obligor shall qualify as an Eligible
Assignee under any circumstances.

     "ENVIRONMENTAL LAWS" means all applicable federal, state or local statutes,
laws, ordinances, codes, rules, regulations and guidelines (including consent
decrees and administrative orders) relating to public health and safety and
protection of the environment, including the federal Occupational Health and
Safety Act.

     "ERISA" means the federal Employee Retirement Income Security Act of 1974.

     "ERISA GROUP PERSON" means the Company, any of its Subsidiaries and any
Person which is a member of the controlled group or under common control with
the Company or any of its Subsidiaries within the meaning of section 414 of the
Code or section 4001(a)(14) of ERISA.

     "EVENT OF DEFAULT" is defined in Section 8.1.

                                      -13-

<PAGE>   27

     "EXCHANGE ACT" means the federal Securities Exchange Act of 1934.

     "FEDERAL FUNDS RATE" means, for any day, the rate equal to the weighted
average (rounded upward to the nearest 1/16%) of (a) the rates on overnight
federal funds transactions with members of the Federal Reserve System arranged
by federal funds brokers, as such weighted average is published for such day
(or, if such day is not a Banking Day, for the immediately preceding Banking
Day) by the Federal Reserve Bank of New York or (b) if such rate is not so
published for such Banking Day, quotations received by the Agent from three
federal funds brokers of recognized standing selected by the Agent. Each
determination by the Agent of the Federal Funds Rate shall, in the absence of
manifest error, be conclusive.

     "FINANCIAL OFFICER" of the Company (or other specified Person) means its
chief executive officer, chief financial officer, chief operating officer,
chairman, president, treasurer, controller or any of its vice presidents whose
primary responsibility is for its financial affairs, in each case whose
incumbency and signatures have been certified to the Agent by the secretary or
other appropriate attesting officer of the Company (or such specified Person).

     "FINANCING DEBT" means each of the items described in clauses (a) through
(f) of the definition of the term "Indebtedness" and, without duplication, any
Guarantees of such items.

     "FOREIGN SUBSIDIARY" means each Subsidiary that is organized under the laws
of, and conducting its business primarily in a jurisdiction outside of, the
United States of America and that is not domesticated or dually incorporated
under the laws of the United States of America or the states thereof.

     "FUNDING LIABILITY" means (a) any LIBOR Deposit which was used (or deemed
by Section 3.2.6 to have been used) to fund any portion of the Loan subject to a
LIBOR Pricing Option, and (b) any portion of the Loan subject to a LIBOR Pricing
Option funded (or deemed by Section 3.2.6 to have been funded) with the proceeds
of any such LIBOR Deposit.

     "GAAP" means generally accepted accounting principles as from time to time
in effect, including the statements and interpretations of the United States
Financial Accounting Standards Board; PROVIDED, HOWEVER, that (a) for purposes
of compliance with Section 6 (other than Section 6.4) and the related
definitions, "GAAP" means such principles as in effect on December 31, 1998 as
applied by the Company and its Subsidiaries in the preparation of the most
recent annual statements referred to in Section 7.2.1(a), and consistently
followed, without giving effect to any subsequent changes thereto and (b) in the
event of a change in generally accepted accounting principles after such date,
either the Company or the Required Lenders may request a change in the
definition of "GAAP", in which case the parties hereto

                                      -14-

<PAGE>   28

shall negotiate in good faith with respect to an amendment of this Agreement
implementing such change.

     "GUARANTEE" means, with respect to the Company (or other specified Person):

          (a) any guarantee by the Company (or such specified Person) of the
     payment or performance of, or any contingent obligation by the Company (or
     such specified Person) in respect of, any Indebtedness or other obligation
     of any primary obligor;

          (b) any other arrangement whereby credit is extended to a primary
     obligor on the basis of any promise or undertaking of the Company (or such
     specified Person), including any binding "comfort letter" or "keep well
     agreement" written by the Company (or such specified Person), to a creditor
     or prospective creditor of such primary obligor, to (i) pay the
     Indebtedness of such primary obligor, (ii) purchase an obligation owed by
     such primary obligor, (iii) pay for the purchase or lease of assets or
     services regardless of the actual delivery thereof or (iv) maintain the
     capital, working capital, solvency or general financial condition of such
     primary obligor;

          (c) any liability of the Company (or such specified Person), as a
     general partner of a partnership in respect of Indebtedness or other
     obligations of such partnership;

          (d) any liability of the Company (or such specified Person) as a joint
     venturer of a joint venture in respect of Indebtedness or other obligations
     of such joint venture;

          (e) any liability of the Company (or such specified Person) with
     respect to the tax liability of others as a member of a group (other than a
     group consisting solely of the Company and its Subsidiaries) that is
     consolidated for tax purposes; and

          (f) reimbursement obligations, whether contingent or matured, of the
     Company (or such specified Person) with respect to letters of credit,
     bankers acceptances, surety bonds, other financial guarantees and Hedge
     Agreements,

in each case whether or not any of the foregoing are reflected on the balance
sheet of the Company (or such specified Person) or in a footnote thereto;
PROVIDED, HOWEVER, that the term "Guarantee" shall not include endorsements for
collection or deposit in the ordinary course of business. The amount of any
Guarantee and the amount of Indebtedness resulting from such Guarantee shall be
the maximum amount that the guarantor may become obligated to pay in respect of
the obligations (whether or not such obligations are outstanding at the time of
computation).

     "GUARANTEE AND SECURITY AGREEMENT" is defined in Section 5.1.4.

                                      -15-

<PAGE>   29

     "GUARANTOR" means each of the Company's Subsidiaries party to, or which
subsequently becomes party to, the Guarantee and Security Agreement as a
Guarantor.

     "HAZARDOUS MATERIAL" means any pollutant, toxic or hazardous material or
waste, including any "hazardous substance" or "pollutant" or "contaminant" as
defined in section 101(14) of CERCLA or any other Environmental Law or regulated
as toxic or hazardous under RCRA or any other Environmental Law.

     "HEDGE AGREEMENTS" means, collectively, Currency Exchange Agreements and
Interest Rate Protection Agreements.

     "IMMATERIAL SUBSIDIARY" means any Subsidiary whose assets (at fair market
value) do not exceed $100,000 and in which the net Investment of the Company and
its Subsidiaries is less than $100,000.

     "INDEBTEDNESS" means all obligations, contingent or otherwise, which in
accordance with GAAP are required to be classified upon the balance sheet of the
Company (or other specified Person) as liabilities, but in any event including
(without duplication):

          (a) borrowed money;

          (b) indebtedness evidenced by notes, debentures or similar
     instruments;

          (c) Capitalized Lease Obligations;

          (d) the deferred cash purchase price of assets, services or
     securities, including related noncompetition, consulting and stock
     repurchase obligations (other than ordinary trade accounts payable within
     six months after the incurrence thereof in the ordinary course of
     business);

          (e) mandatory redemption or dividend rights on capital stock (or other
     equity);

          (f) reimbursement obligations, whether contingent or matured, with
     respect to letters of credit, bankers acceptances, surety bonds, other
     financial guarantees and Hedge Agreements (without duplication of other
     Indebtedness supported or guaranteed thereby);

          (g) unfunded pension liabilities;

                                      -16-

<PAGE>   30

          (h) obligations that are immediately and directly due and payable out
     of the proceeds of or production from property;

          (i) liabilities secured by any Lien existing on property owned or
     acquired by the Company (or such specified Person), whether or not the
     liability secured thereby shall have been assumed; and

          (j) all Guarantees in respect of Indebtedness of others.

     "INDEMNIFIED PARTY" is defined in Section 9.2.

     "INITIAL CLOSING DATE" means December 30, 1999 or such other date prior to
January 1, 2000 agreed to by the Company and the Agent as the first Closing Date
hereunder.

     "INTEREST RATE PROTECTION AGREEMENT" means any interest rate swap, interest
rate cap, interest rate hedge or other contractual arrangement that converts
variable interest rates into fixed interest rates, fixed interest rates into
variable interest rates or other similar arrangements.

     "INVESTMENT" means, with respect to the Company (or other specified
Person):

          (a) any share of capital stock, partnership or other equity interest,
     evidence of Indebtedness or other security issued by any other Person;

          (b) any loan, advance or extension of credit to, or contribution to
     the capital of, any other Person;

          (c) any Guarantee of the obligations of any other Person;

          (d) any acquisition of all, or any division or similar operating unit
     of, the business of any other Person or the assets comprising such
     business, division or unit; and

          (e) any other similar investment.

     The investments described in the foregoing clauses (a) through (e) shall be
included in the term "Investment" whether they are made or acquired by purchase,
exchange, issuance of stock or other securities, merger, reorganization or any
other method; PROVIDED, HOWEVER, that the term "Investment" shall not include
(i) trade and customer accounts receivable for property leased, goods furnished
or services rendered in the ordinary course of business and payable within one
year in accordance with customary trade terms, (ii) deposits, advances or
prepayments to suppliers for property leased or licensed, goods furnished and
services rendered in the ordinary course of business, (iii) advances to
employees for relocation and

                                      -17-

<PAGE>   31

travel expenses, drawing accounts and similar expenditures, (iv) stock or other
securities acquired in connection with the satisfaction or enforcement of
Indebtedness or claims or accounts receivable due to the Company (or such
specified Person) or as security for any such Indebtedness or claim or (v)
demand deposits in banks or similar financial institutions.

     In determining the amount of outstanding Investments:

          (A) the amount of any Investment shall be the cost thereof MINUS any
     returns of capital in cash on such Investment (determined in accordance
     with GAAP without regard to amounts realized as income on such Investment);

          (B) the amount of any Investment in respect of a purchase described in
     clause (d) above shall include the amount of any Financing Debt assumed in
     connection with such purchase or secured by any asset acquired in such
     purchase (whether or not any Financing Debt is assumed) or for which any
     Person that becomes a Subsidiary is liable on the date on which the
     securities of such Person are acquired; and

          (C) no Investment shall be increased as the result of an increase in
     the undistributed retained earnings of the Person in which the Investment
     was made or decreased as a result of an equity interest in the losses of
     such Person.

     "ISP" is defined in Section 2.3.6.

     "KNOWLEDGE ENTERPRISES" means Knowledge Enterprises, Inc., a Delaware
corporation.

     "LEGAL REQUIREMENT" means any present or future requirement imposed upon
any of the Lenders or the Company and its Subsidiaries by any law, statute,
rule, regulation, directive, order, decree or guideline (or any interpretation
thereof by courts or of administrative bodies) of the United States of America,
or any jurisdiction in which any LIBOR Office is located or any state or
political subdivision of any of the foregoing, or by any board, governmental or
administrative agency, central bank or monetary authority of the United States
of America, any jurisdiction in which any LIBOR Office is located or where the
Company or any of its Subsidiaries owns property or conducts its business, or
any political subdivision of any of the foregoing. Any such law, statute, rule,
regulation, directive, order, decree, guideline or interpretation imposed on any
of the Lenders not having the force of law shall be deemed to be a Legal
Requirement for purposes of Section 3 if such Lender reasonably believes that
compliance therewith is customary commercial practice.

     "LENDER" means each of the Persons listed as lenders on the signature page
hereto, including BankBoston and Bank of America, N.A., each in its capacity as
a Lender and such other Persons who may from time to time own a Percentage
Interest in the Credit Obligations, but the term "Lender" shall not include any
Credit Participant.

                                      -18-

<PAGE>   32

     "LENDING OFFICER" means such individuals whom the Agent may designate by
notice to the Company from time to time as an officer or employee who may
receive telephone requests for extensions of credit under Sections 2.1.3 and
2.3.2.

     "LETTER OF CREDIT" is defined in Section 2.3.1.

     "LETTER OF CREDIT EXPOSURE" means, at any date, the sum of (a) the
aggregate face amount of all drafts that may then or thereafter be presented by
beneficiaries under all Letters of Credit then outstanding, PLUS (b) the
aggregate face amount of all drafts that the Letter of Credit Issuer has
previously accepted under Letters of Credit but has not paid.

     "LETTER OF CREDIT ISSUER" means, for any Letter of Credit, BankBoston or,
in the event BankBoston does not for any reason issue a requested Letter of
Credit, another Lender selected by the Company to issue such Letter of Credit.

     "LIBOR BASIC RATE" means, for any LIBOR Interest Period, the rate of
interest at which LIBOR Deposits which have a term corresponding to such LIBOR
Interest Period are offered to the Agent by first class banks in the inter-bank
LIBOR market for delivery in immediately available funds at a LIBOR Office on
the first day of such LIBOR Interest Period as determined by the Agent at
approximately 11:00 a.m. (London time) two Banking Days prior to the date upon
which such LIBOR Interest Period is to commence (which determination by the
Agent shall, in the absence of manifest error, be conclusive).

     "LIBOR DEPOSITS" means, with respect to any Lender, deposits of United
States Funds in a non-United States office or an international banking facility
of such Lender.

     "LIBOR INTEREST PERIOD" means any period, selected as provided in Section
3.2.1, of one, two, three or six months, commencing on any Banking Day and
ending on the corresponding date in the subsequent calendar month so indicated
(or, if such subsequent calendar month has no corresponding date, on the last
day of such subsequent calendar month); PROVIDED, HOWEVER, that subject to
Section 3.2.3, if any LIBOR Interest Period so selected would otherwise begin or
end on a date which is not a Banking Day, such LIBOR Interest Period shall
instead begin or end, as the case may be, on the immediately preceding or
succeeding Banking Day as determined by the Agent in accordance with the then
current banking practice in the inter-bank LIBOR market with respect to LIBOR
Deposits at the applicable LIBOR Office, which determination by the Agent shall,
in the absence of manifest error, be conclusive.

     "LIBOR OFFICE" means such non-United States office or international banking
facility of any Lender as such Lender may from time to time select.

                                      -19-

<PAGE>   33

     "LIBOR PRICING OPTIONS" means the options granted pursuant to Section 3.2.1
to have the interest on any portion of the Loan computed on the basis of a LIBOR
Rate.

     "LIBOR RATE" for any LIBOR Interest Period means the rate, rounded upward
to the nearest 1/100%, obtained by dividing (a) the LIBOR Basic Rate for such
LIBOR Interest Period by (b) an amount equal to 1 MINUS the LIBOR Reserve Rate;
PROVIDED, HOWEVER, that if at any time during such LIBOR Interest Period the
LIBOR Reserve Rate applicable to any outstanding LIBOR Pricing Option changes,
the LIBOR Rate for such LIBOR Interest Period shall automatically be adjusted to
reflect such change, effective as of the date of such change to the extent
required by the Legal Requirement implementing such change.

     "LIBOR RESERVE RATE" means the stated maximum rate (expressed as a decimal)
of all reserves (including any basic, supplemental, marginal or emergency
reserve or any reserve asset), if any, as from time to time in effect, required
by any Legal Requirement to be maintained by any Lender against (a)
"Eurocurrency liabilities" as specified in Regulation D of the Board of
Governors of the Federal Reserve System applicable to LIBOR Pricing Options or
(b) any other category of extensions of credit, or other assets, that includes
loans subject to a LIBOR Pricing Option by a non-United States office of any of
the Lenders to United States residents.

     "LIEN" means, with respect to the Company (or any other specified Person):

          (a) any lien, encumbrance, mortgage, pledge, charge or security
     interest of any kind upon any property or assets of the Company (or such
     specified Person), whether now owned or hereafter acquired, or upon the
     income or profits therefrom;

          (b) the acquisition of, or the agreement to acquire, any property or
     asset upon conditional sale or subject to any other title retention
     agreement, device or arrangement (including a Capitalized Lease);

          (c) the sale, assignment, pledge or transfer for security of any
     accounts, general intangibles or chattel paper of the Company (or such
     specified Person), with or without recourse;

          (d) the transfer of any tangible property or assets for the purpose of
     subjecting such items to the payment of previously outstanding Indebtedness
     in priority to payment of the general creditors of the Company (or such
     specified Person); and

          (e) the existence for a period of more than 120 consecutive days of
     any Indebtedness against the Company (or such specified Person) which if
     unpaid would by law or upon a Bankruptcy Default be given any priority over
     general creditors.

     "LOAN" means, collectively, the Revolving Loan and the Acquisition Loan.

                                      -20-

<PAGE>   34

     "MARGIN STOCK" means "margin stock" within the meaning of Regulations T, U
or X of the Board of Governors of the Federal Reserve System.

     "MATERIAL ADVERSE CHANGE" means, since any specified date or from the
circumstances existing immediately prior to the happening of any specified
event, a material adverse change in (a) the business, assets, financial
condition, income or prospects of the Company and its Subsidiaries (on a
Consolidated basis), whether as a result of (i) general economic conditions
affecting the business consulting industry, (ii) fire, flood or other natural
calamities, (iii) regulatory changes, judicial decisions, war or other
governmental action or (iv) any other event or development, whether or not
related to those enumerated above or (b) the ability of the Obligors to perform
their obligations under the Credit Documents or (c) the rights and remedies of
the Agent and the Lenders under the Credit Documents.

     "MATERIAL AGREEMENTS" is defined in Section 7.2.2.

     "MATERIAL FINANCING DEBT" means any Financing Debt (other than the Credit
Obligations and, so long as the Subordination Agreement is in full force and
effect, the Debentures) outstanding in an aggregate amount of principal (whether
or not due) and accrued interest exceeding $500,000.

     "MATURITY DATE" means March 29, 2002 (which Maturity Date may be extended
as provided in Section 2.5).

     "MAXIMUM AMOUNT OF ACQUISITION CREDIT" is defined in Section 2.2.2.

     "MAXIMUM AMOUNT OF REVOLVING CREDIT" is defined in Section 2.1.2.

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

     "MULTIEMPLOYER PLAN" means any Plan that is a "multiemployer plan" as
defined in section 4001(a)(3) of ERISA.

     "NET ASSET SALE PROCEEDS" means the cash proceeds of the sale or
disposition of assets (including by way of merger), and the cash proceeds of any
insurance payments on account of the destruction or loss of property, by the
Company or any of its Subsidiaries after the Initial Closing Date, net of (a)
any Indebtedness permitted by Section 6.6.7 (purchase money Indebtedness and
Capitalized Leases) secured by assets being sold in such transaction required to
be paid from such proceeds, (b) income taxes that, as estimated by the Company
in good faith, will be required to be paid by the Company or any of its
Subsidiaries in cash as a result of, and within 16 months after, such sale or
disposition, (c) reasonable reserves for liabilities, indemnities, escrows and
purchase price adjustments resulting from the sale of assets and (d) all
reasonable expenses of the Company or any of its Subsidiaries payable in
connection with

                                      -21-

<PAGE>   35

the sale or disposition; PROVIDED, HOWEVER, that "Net Asset Sale Proceeds" shall
not include cash proceeds:

          (i) of asset sales permitted by Section 6.11.1, 6.11.6 or 6.11.7,

          (ii) to the extent not covered in clause (i) above, of mergers
     permitted by Section 6.11.2,

          (iii) that will be used to acquire replacement or other assets within
     180 days after such sale, disposition, destruction or loss; PROVIDED,
     HOWEVER, that if any amount in this clause (iii) is not actually used to
     acquire replacement or other assets within such 180-day period, such amount
     shall become Net Asset Sale Proceeds,

          (iv) of licensing or leasing of assets permitted by Section 6.11.3, or

          (v) of the liquidation or other disposition of Cranberry Hill Capital.

     "NET DEBT PROCEEDS" means cash proceeds (net of reasonable out-of-pocket
transaction fees and expenses) from the incurrence by the Company or any of its
Subsidiaries after the Initial Closing Date of Financing Debt other than
Financing Debt permitted by Sections 6.6.1 (the Loan), 6.6.7 (purchase money
Indebtedness and Capitalized Leases), 6.6.9 (intercompany Indebtedness) and
6.6.13 (Foreign Subsidiary Indebtedness).

     "NET EQUITY PROCEEDS" means the cash proceeds (net of reasonable
out-of-pocket fees and expenses) received by the Company or any of its
Subsidiaries in connection with any issuance by the Company or any of its
Subsidiaries after the Initial Closing Date of any shares of its capital stock,
other equity interests or options, warrants or other purchase rights to acquire
such capital stock or other equity interests to, or receipt of a capital
contribution from, any Person (other than any Obligors or their officers,
employees and directors); PROVIDED, HOWEVER, that Net Equity Proceeds shall
exclude all cash proceeds derived from any exercises under the Company's stock
option plans and employee stock purchase plans.

     "NONPERFORMING LENDER" is defined in Section 10.4.4.

     "NOTES" means, collectively, the Revolving Notes and the Acquisition Notes.

     "OBLIGOR" means the Company, each Guarantor and each other Person
guaranteeing or providing collateral for the Credit Obligations.

     "OVERDUE REIMBURSEMENT RATE" means, at any date, the highest Applicable
Rate then in effect.

                                      -22-

<PAGE>   36

     "PAYMENT DATE" means (a) the last Banking Day of each March, June,
September and December, beginning on the first such date after the date hereof
and (b) the Maturity Date.

     "PBGC" means the Pension Benefit Guaranty Corporation or any successor
entity.

     "PERCENTAGE INTEREST" means, with respect to any Lender, the Commitment of
such Lender with respect to the respective portions of the Loan and Letter of
Credit Exposure. For purposes of determining votes or consents by the Lenders,
the Percentage Interest of any Lender shall be computed as follows: (a) at all
times when no Event of Default under Section 8.1.1 and no Bankruptcy Default
exists, the ratio that the respective Commitments of such Lender bears to the
total Commitments of all Lenders as from time to time in effect and reflected in
the Register, and (b) at all other times, the ratio that the respective amounts
of the outstanding Loan and Letter of Credit Exposure owing to such Lender bear
to the total outstanding Loan and Letter of Credit Exposure owing to all
Lenders.

     "PERFORMING LENDER" is defined in Section 10.4.4.

     "PERSON" means any present or future natural person or any corporation,
association, partnership, joint venture, limited liability, joint stock or other
company, business trust, trust, organization, business or government or any
governmental agency or political subdivision thereof.

     "PIK INTEREST" means any accrued interest payments on Financing Debt that
are postponed or made through the issuance of "payment-in-kind" notes or other
similar securities (including book-entry accrual with respect to such postponed
interest payments), all in accordance with the terms of such Financing Debt;
PROVIDED, HOWEVER, that in no event shall PIK Interest include payments made
with cash or Cash Equivalents.

     "PLAN" means, at any date, any pension benefit plan subject to Title IV of
ERISA maintained, or to which contributions have been made or are required to be
made, by any ERISA Group Person within six years prior to such date.

     "PRIOR CREDIT AGREEMENT" means the Discretionary Demand Credit Agreement
dated as of June 26, 1999, as from time to time in effect, among the Company,
its Domestic Subsidiaries and BankBoston.

     "PROSPECTUS" is defined in Section 7.2.1.

     "RCRA" means the federal Resource Conservation and Recovery Act, 42 U.S.C.
section 690, ET SEQ.

     "REFERENCE LEVERAGE RATIO" means, on any date, the ratio of (a)
Consolidated Total Debt as of the end of the most recent period of four
consecutive fiscal quarters for which

                                      -23-

<PAGE>   37

financial statements have been furnished to the Lenders in accordance with
Sections 6.4.1 and 6.4.2 prior to such date to (b) Consolidated Pro Forma EBITDA
for such period.

     "REGISTER" is defined in Section 11.1.3.

     "RELATED FUND" means, with respect to any Lender that is a fund that
invests in senior bank loans, any other fund that invests in senior bank loans
and is managed by the same investment advisor as such Lender or by an Affiliate
of such investment advisor.

     "REPLACEMENT LENDER" is defined in Section 11.3.

     "REQUIRED LENDERS" means, with respect to any approval, consent,
modification, waiver or other action to be taken by the Agent or the Lenders
under the Credit Documents which require action by the Required Lenders, such
Lenders as own at least a majority of the Percentage Interests; PROVIDED,
HOWEVER, that with respect to any matters referred to in the proviso to Section
15.1, Required Lenders means such Lenders as own at least the respective
portions of the Percentage Interests required by Section 15.1.

     "REVOLVING LOAN" is defined in Section 2.1.4.

     "REVOLVING NOTES" is defined in Section 2.1.4.

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

     "SECURITIES ACT" means the federal Securities Act of 1933.

     "SETTLEMENT" means the making or receiving of payments, in immediately
available funds, by the Lenders to the extent necessary to cause each Lender's
actual share of the Revolving Loan to be equal to such Lender's Percentage
Interest with respect to the Revolving Loan, in the event that, prior to such
making or receiving of payments, the actual share is not so equal.

     "SETTLEMENT AMOUNT" is defined in Section 2.6.

     "SETTLEMENT DATE" means the first Banking Day in each calendar week and
each Payment Date.

     "SIBSON CANADA" means Sibson Canada Co., a corporation formed under the
laws of Canada.

     "SUBORDINATION AGREEMENT" is defined in Section 5.1.6.

                                      -24-

<PAGE>   38

     "SUBSIDIARY" means any Person of which the Company (or other specified
Person) shall at the time, directly or indirectly through one or more of its
Subsidiaries, (a) own at least 50% of the outstanding capital stock (or other
shares of beneficial interest) entitled to vote generally, (b) hold at least 50%
of the partnership, joint venture or similar interests or (c) be a general
partner or joint venturer and hold at least 50% of the general partner or joint
venturer interests, as the case may be.

     "SYNDICATION AGENT" means Banc of America Securities LLC, a Delaware
limited liability company .

     "TAX" means any present or future tax, levy, duty, impost, deduction,
withholding or other charges of whatever nature at any time required by any
Legal Requirement (a) to be paid by any Lender or (b) to be withheld or deducted
from any payment otherwise required hereby to be made to any Lender, in each
case on or with respect to its obligations hereunder, from the Loan, any payment
in respect of the Credit Obligations or any Funding Liability not included in
the foregoing; PROVIDED, HOWEVER, that the term "Tax" shall not include taxes
imposed upon or measured by the net income of such Lender or franchise taxes
that are imposed in lieu of net income taxes; PROVIDED, FURTHER, HOWEVER, that
the term "Tax" shall include withholding taxes in any event.

     "UCP" is defined in Section 2.3.6.

     "UNITED STATES FUNDS" means such coin or currency of the United States of
America as at the time shall be legal tender therein for the payment of public
and private debts.

     "WHOLLY OWNED SUBSIDIARY" means any Subsidiary of which all of the
outstanding capital stock (or other shares of beneficial interest) entitled to
vote generally (other than directors' qualifying shares and, in the case of
Foreign Subsidiaries, shares required by Legal Requirements to be held by
foreign nationals) is owned by the Company (or other specified Person) directly,
or indirectly through one or more Wholly Owned Subsidiaries; PROVIDED, HOWEVER,
that Sibson Canada shall be considered a "Wholly Owned Subsidiary" so long as
the Company owns at least 99% of the outstanding equity of Sibson Canada.

2.   THE CREDITS.

     2.1. REVOLVING CREDIT.

          2.1.1. REVOLVING LOAN. Subject to all the terms and conditions of this
     Agreement and so long as no Default exists, from time to time on and after
     the Initial Closing Date and prior to the Maturity Date the Lenders will,
     severally in accordance with their respective Commitments in the Revolving
     Loan, make loans to the Company in such amounts as may be requested by the
     Company in accordance with

                                      -25-

<PAGE>   39

     Section 2.1.3. The sum of the aggregate principal amount of loans made
     under this Section 2.1.1 at any one time outstanding (including loans made
     in accordance with the Cash Management Agreement) PLUS the Letter of Credit
     Exposure shall in no event exceed the Maximum Amount of Revolving Credit.
     In no event will the principal amount of loans at any one time outstanding
     made by any Lender pursuant to this Section 2.1, together with such
     Lender's Percentage Interest in the Letter of Credit Exposure, exceed such
     Lender's Commitment with respect to the Revolving Loan.

          2.1.2. MAXIMUM AMOUNT OF REVOLVING CREDIT. The term "MAXIMUM AMOUNT OF
     REVOLVING CREDIT" means the lesser of:

                (a) the total of (i) $15,000,000 MINUS (ii) any Net Asset Sale
          Proceeds described in Section 4.2.2 and Net Debt Proceeds described in
          Section 4.2.3, in each case to the extent allocable to the Revolving
          Loan in accordance with Section 4.5.2, PLUS (iii) any Credit
          Reallocation from the Maximum Amount of Acquisition Credit to the
          Maximum Amount of Revolving Credit, MINUS (iv) any Credit Reallocation
          from the Maximum Amount of Revolving Credit to the Maximum Amount of
          Acquisition Credit, or

                (b) the amount to which the then applicable amount set forth in
          clause (a) hereof shall have been irrevocably reduced from time to
          time by seven Banking Days notice from the Company to the Agent (the
          minimum aggregate amount of which reduction shall be $5,000,000 and
          integral multiples of $1,000,000 in excess thereof).

          2.1.3. BORROWING REQUESTS. Except as otherwise provided in the Cash
     Management Agreement for net daily loans not exceeding $2,500,000 in
     principal amount made in accordance therewith, the Company may from time to
     time request a loan under Section 2.1.1 by providing to the Agent a notice
     (which may be given by a telephone call received by a Lending Officer if
     promptly confirmed in writing). Such notice must be not later than noon
     (Boston time) on the first Banking Day (third Banking Day if any portion of
     such loan will be subject to a LIBOR Pricing Option on the requested
     Closing Date) prior to the requested Closing Date for such loan. The notice
     must specify (a) the amount of the requested loan (which shall be not less
     than $1,000,000 and an integral multiple of $500,000, except as otherwise
     provided in the Cash Management Agreement) and (b) the requested Closing
     Date therefor, which shall be a Banking Day. Upon receipt of such notice,
     the Agent will promptly inform each other Lender (by telephone or
     otherwise). Each such loan will be made at the Boston Office by depositing
     the amount thereof to the general account of the Company with the Agent. In
     connection with each such loan, the Company shall furnish to the Agent a
     certificate in substantially the form of Exhibit 5.2.1.

                                      -26-

<PAGE>   40

          2.1.4. REVOLVING NOTES. The aggregate principal amount of the loans
     outstanding from time to time under this Section 2.1 (including loans made
     in accordance with the Cash Management Agreement) is referred to as the
     "REVOLVING LOAN". The Agent shall keep a record of the Revolving Loan and
     the respective interests of the Lenders therein as part of the Register,
     which shall evidence the Revolving Loan. The Revolving Loan shall be deemed
     owed to each Lender having a Commitment therein severally in accordance
     with such Lender's Percentage Interest therein, and all payments thereon
     shall be for the account of each Lender in accordance with its Percentage
     Interest therein. Upon written request of any Lender, the Company's
     obligations to pay such Lender's Percentage Interest in the Revolving Loan
     shall be further evidenced by a separate note of the Company in
     substantially the form of Exhibit 2.1.4 (the "REVOLVING NOTES"), payable to
     such Lender in accordance with such Lender's Percentage Interest in the
     Revolving Loan.

     2.2. ACQUISITION CREDIT.

          2.2.1. ACQUISITION LOAN. Subject to all the terms and conditions of
     this Agreement and so long as no Default exists, from time to time on and
     after the Initial Closing Date and prior to the Maturity Date the Lenders
     will, severally in accordance with their respective Commitments in the
     Acquisition Loan, make loans to the Company in such amounts as may be
     requested by the Company in accordance with Section 2.2.3 for the purpose
     of funding all or a portion of an acquisition permitted by Section 6.9
     (whether requested in connection with the closing of such an acquisition or
     to fund future payments by the Company (i.e., that become due and owing by
     the Company after the closing of such an acquisition) related to such an
     acquisition) (or, on the Initial Closing Date, refinancing the Prior Credit
     Agreement). The sum of the aggregate principal amount of loans made under
     this Section 2.2.1 at any one time outstanding shall in no event exceed the
     Maximum Amount of Acquisition Credit. In no event will the principal amount
     of loans at any one time outstanding made by any Lender pursuant to this
     Section 2.2 exceed such Lender's Commitment with respect to the Acquisition
     Loan.

          2.2.2. MAXIMUM AMOUNT OF ACQUISITION CREDIT. The term "MAXIMUM AMOUNT
     OF ACQUISITION CREDIT" means the lesser of:

                (a) the total of (i) $40,000,000 MINUS (ii) any Net Asset Sale
          Proceeds described in Section 4.2.2 and Net Debt Proceeds described in
          Section 4.2.3, in each case to the extent allocable to the Acquisition
          Loan in accordance with Section 4.5.2, PLUS (iii) any Credit
          Reallocation from the Maximum Amount of Revolving Credit to the
          Maximum Amount of Acquisition Credit, MINUS (iv) any Credit
          Reallocation from the Maximum

                                      -27-

<PAGE>   41

          Amount of Acquisition Credit to the Maximum Amount of Revolving
          Credit, or

                 (b) the amount to which the then applicable amount set forth in
          clause (a) hereof shall have been irrevocably reduced from time to
          time by seven Banking Days notice from the Company to the Agent (the
          minimum aggregate amount of which reduction shall be $5,000,000 and
          integral multiples of $1,000,000 thereof).

          2.2.3. BORROWING REQUESTS. The Company may from time to time request a
     loan under this Section 2.2 by providing to the Agent a written notice in
     accordance with Section 2.2.1. Such notice must be not later than noon
     (Boston time) on the first Banking Day (third Banking Day if any portion of
     such loan will be subject to a LIBOR Pricing Option on the requested
     Closing Date) prior to the requested Closing Date for such loan. The notice
     must specify (a) the amount of the requested loan (which shall not be less
     than $500,000) and (b) the requested Closing Date therefor, which shall be
     a Banking Day. Upon receipt of such notice, the Agent will promptly inform
     each other Lender (by telephone or otherwise). Each such loan will be made
     at the Boston Office by depositing the amount thereof to the general
     account of the Company with the Agent or by wire transfer as the Company
     may direct in writing to the Agent. In connection with each such loan, the
     Company shall furnish to the Agent a certificate in substantially the form
     of Exhibit 5.2.1 and any additional information the Agent or any Lender
     shall reasonably request.

          2.2.4. ACQUISITION NOTES. The aggregate principal amount of the loans
     outstanding from time to time under this Section 2.2 is referred to as the
     "ACQUISITION LOAN". The Agent shall keep a record of the Acquisition Loan
     and the interests of the respective Lenders therein as part of the
     Register, which shall evidence the Acquisition Loan. The Acquisition Loan
     shall be deemed owed to each Lender having a Commitment therein severally
     in accordance with such Lender's Percentage Interest therein, and all
     payments thereon shall be for the account of each Lender in accordance with
     its Percentage Interest therein. Upon request of any Lender, the Company's
     obligations to pay such Lender's Percentage Interest in the Acquisition
     Loan shall be evidenced by a separate note of the Company in substantially
     the form of Exhibit 2.2.4 (the "ACQUISITION NOTES"), payable to such Lender
     in accordance with such Lender's Percentage Interest in the Acquisition
     Loan.

     2.3. LETTERS OF CREDIT.

          2.3.1. ISSUANCE OF LETTERS OF CREDIT. Subject to all the terms and
     conditions of this Agreement and so long as no Default exists, from time to
     time on and after the Initial Closing Date and prior to the date five
     Banking Days preceding the Maturity

                                      -28-

<PAGE>   42

     Date, the Letter of Credit Issuer will issue for the account of the Company
     one or more irrevocable documentary or standby letters of credit (the
     "LETTERS OF CREDIT"). In addition, letters of credit having Letter of
     Credit Exposure not exceeding $4,000,000 issued under the Prior Credit
     Agreement shall be automatically deemed to be Letters of Credit issued
     under this Section 2.3. The sum of Letter of Credit Exposure PLUS the
     Revolving Loan shall in no event exceed the Maximum Amount of Revolving
     Credit. Letter of Credit Exposure shall in no event exceed $7,500,000.

          2.3.2. REQUESTS FOR LETTERS OF CREDIT. The Company may from time to
     time request a Letter of Credit to be issued by providing to the Letter of
     Credit Issuer (and the Agent if the Letter of Credit Issuer is not the
     Agent) a notice which is actually received not less than three Banking Days
     (for standby Letters of Credit) and one Banking Day (for documentary
     Letters of Credit) prior to the requested Closing Date for such Letter of
     Credit specifying (a) the amount of the requested Letter of Credit, (b) the
     beneficiary thereof, (c) the requested Closing Date and (d) a summary of
     the principal terms of the text for such Letter of Credit, together with
     any customary application forms required by the Letter of Credit Issuer. In
     the event of any inconsistency between such application forms and this
     Agreement, this Agreement shall govern. Each Letter of Credit will be
     issued by forwarding it to the Company or to such other Person as directed
     in writing by the Company. In connection with the issuance of any Letter of
     Credit, the Company shall furnish to the Letter of Credit Issuer (and the
     Agent if the Letter of Credit Issuer is not the Agent) a certificate in
     substantially the form of Exhibit 5.2.1.

          2.3.3. FORM AND EXPIRATION OF LETTERS OF CREDIT. Each Letter of Credit
     issued under this Section 2.3 and each draft accepted or paid under such a
     Letter of Credit shall be issued, accepted or paid, as the case may be, by
     the Letter of Credit Issuer at its principal office. No Letter of Credit
     shall provide for the payment of drafts drawn thereunder, and no draft
     shall be payable, at a date which is later than the earlier of (a) the date
     12 months after the date of issuance (which expiration date may be extended
     at the option of the Letter of Credit Issuer for additional 12-month
     periods ending prior to the date referred to in clause (b) below) or (b)
     five Banking Days prior to the Maturity Date. Each Letter of Credit and
     each draft accepted under a Letter of Credit shall be in such form and
     shall contain such terms as is generally acceptable in the industry for
     which such Letter of Credit is being requested and shall be in such amount
     as the Letter of Credit Issuer and the Company may agree upon at the time
     such Letter of Credit is issued.

          2.3.4. LENDERS' PARTICIPATION IN LETTERS OF CREDIT. Upon the issuance
     of any Letter of Credit, a participation therein, in an amount equal to
     each Lender's Percentage Interest in the Revolving Loan, shall
     automatically be deemed granted by the Letter of Credit Issuer to each such
     Lender on the date of such issuance and such

                                      -29-

<PAGE>   43

     Lenders shall automatically be obligated, as set forth in Section 10.4, to
     reimburse the Letter of Credit Issuer to the extent of their respective
     Percentage Interests in the Revolving Loan for all obligations incurred by
     the Letter of Credit Issuer to third parties in respect of such Letter of
     Credit not reimbursed by the Company. The Letter of Credit Issuer will send
     to each Lender (and the Agent if the Letter of Credit Issuer is not the
     Agent) a confirmation regarding the participations in Letters of Credit
     outstanding during such month.

          2.3.5. REIMBURSEMENT OF PAYMENT. At such time as a Letter of Credit
     Issuer makes any payment on a draft presented or accepted under a Letter of
     Credit, the amount of such payment shall be considered a loan under Section
     2.1.1 (regardless of whether the conditions set forth in Section 5.2 are
     satisfied) and part of the Revolving Loan as if the Company had paid in
     full the amount required with respect to the Letter of Credit by borrowing
     such amount under Section 2.1.1, except as provided below. In the event
     such amount would cause the Revolving Loan to exceed the Maximum Amount of
     Revolving Credit or if during the existence of an Event of Default the
     Agent has previously provided written notice to the Company that Letter of
     Credit payments will no longer be considered loans under Section 2.1.1, the
     Company will on demand pay to the Agent in immediately available funds the
     amount of such payment.

          2.3.6. UCP; ISP. As to any Letter of Credit that is a documentary
     letter of credit, the most recent Uniform Customs and Practice for
     Documentary Credits adopted by a Congress of the International Chamber of
     Commerce, and any subsequent revisions thereof approved by a Congress of
     the International Chamber of Commerce and adhered to by the Letter of
     Credit Issuer (the "UCP"), shall be binding on the Company and the Letter
     of Credit Issuer except to the extent otherwise provided herein, in any
     Letter of Credit or in any other Credit Document. As to any Letter of
     Credit that is a standby letter of credit, the most recent International
     Standby Practices adopted by a Congress of the International Chamber of
     Commerce, and any subsequent revisions thereof approved by a Congress of
     the International Chamber of Commerce and adhered to by the Letter of
     Credit Issuer (the "ISP"), shall be binding on the Company and the Letter
     of Credit Issuer except to the extent otherwise provided herein, in any
     Letter of Credit or in any other Credit Document. Without limiting the
     foregoing, in the event of an unexpected closure of the Letter of Credit
     Issuer Letter of Credit draws may be made up to only two Banking Days after
     the reopening of the Letter of Credit Issuer rather than the 30 day period
     provided in Rule 3.14(a) of the ISP. Anything in the UCP or the ISP to the
     contrary notwithstanding:

          (1)  With respect to each Letter of Credit, neither the Letter of
     Credit Issuer nor its correspondents shall be responsible for or shall have
     any duty to ascertain (unless the Letter of Credit Issuer or such
     correspondent is grossly negligent or willful in failing so to ascertain):

                                      -30-

<PAGE>   44

               (1) the genuineness of any signature or the validity, form,
          sufficiency, accuracy, genuineness or legal effect of any
          endorsements;

               (2) delay in giving, or failure to give, notice of arrival,
          notice of refusal of documents or of discrepancies in respect of which
          any Letter of Credit Issuer refuses the documents or any other notice,
          demand or protest;

               (3) the performance by any beneficiary under any Letter of Credit
          of such beneficiary's obligations to the Company;

               (4) inaccuracy in any notice received by the Letter of Credit
          Issuer;

               (5) the validity, form, sufficiency, accuracy, genuineness or
          legal effect of any instrument, draft, certificate or other document
          required by such Letter of Credit to be presented before payment of a
          draft if such instrument, draft, certificate or other document appears
          on its face to comply with the requirements of the Letter of Credit,
          or the office held by or the authority of any Person signing any of
          the same; or

               (6) failure of any instrument to bear any reference or adequate
          reference to such Letter of Credit, or failure of any Person to note
          the amount of any instrument on the reverse of such Letter of Credit
          or to surrender such Letter of Credit or to forward documents in the
          manner required by such Letter of Credit.

          (2)  The occurrence of any of the events referred to in the UCP or the
     ISP or in the preceding clauses of this Section 2.3.6 shall not affect or
     prevent the vesting of any of the Letter of Credit Issuer's rights or
     powers hereunder or the Company's obligation to make reimbursement (whether
     by cash payment or by refinancing with advances under the Revolving Loan in
     accordance with Section 2.3.5) of amounts paid under any Letter of Credit
     or any draft accepted thereunder.

          (3)  In the event of any conflict between the provisions of this
     Agreement and either the UCP or the ISP, the provisions of this Agreement
     shall govern.

          2.3.7. SUBROGATION. Upon any payment by a Letter of Credit Issuer
     under any Letter of Credit and until the reimbursement of such Letter of
     Credit Issuer by the Company with respect to such payment (whether by cash
     payment or by refinancing with advances under the Revolving Loan in
     accordance with Section 2.3.5), the Letter of Credit Issuer shall be
     entitled to be subrogated to, and to acquire and retain, the

                                      -31-
<PAGE>   45

     rights which the Person to whom such payment is made may have against the
     Company, all for the benefit of the Lenders. The Company will take such
     action as the Letter of Credit Issuer may reasonably request, including
     requiring the beneficiary of any Letter of Credit to execute such documents
     as the Letter of Credit Issuer may reasonably request, to assure and
     confirm to the Letter of Credit Issuer such subrogation and such rights,
     including the rights, if any, of the beneficiary to whom such payment is
     made in accounts receivable, inventory and other properties and assets of
     any Obligor.

          2.3.8. MODIFICATION, CONSENT, ETC. If the Company requests or consents
     in writing to any modification or extension of any Letter of Credit, or
     waives any failure of any draft, certificate or other document to comply
     with the terms of such Letter of Credit, the Letter of Credit Issuer shall
     be entitled to rely on such request, consent or waiver. This Agreement
     shall be binding upon the Company with respect to such Letter of Credit as
     so modified or extended, and with respect to any action taken or omitted by
     such Letter of Credit Issuer pursuant to any such request, consent or
     waiver.

     2.4. APPLICATION OF PROCEEDS.

          2.4.1. REVOLVING LOAN. Subject to Section 2.4.4, the Company will
     apply the proceeds of the Revolving Loan for working capital, capital
     expenditures and other lawful corporate purposes of the Company and its
     Subsidiaries.

          2.4.2. ACQUISITION LOAN. The Company will apply the proceeds of the
     Acquisition Loan to fund all or a portion of acquisitions permitted by
     Section 6.9 (whether through stock purchase, asset purchase, merger or
     consolidation), including the repayment of related Indebtedness of the
     acquired entity that will not be assumed by the Company and its
     Subsidiaries, and to pay the related transaction fees and expenses. In
     addition, on the Initial Closing Date the Company may apply the proceeds of
     the Acquisition Loan to refinance the Prior Credit Agreement.

          2.4.3. LETTERS OF CREDIT. Letters of Credit shall be issued only for
     such lawful corporate purposes as the Company has requested in writing and
     to which the Letter of Credit Issuer agrees, which agreement shall not be
     unreasonably withheld.

          2.4.4. SPECIFICALLY PROHIBITED APPLICATIONS. The Company will not,
     directly or indirectly, apply any part of the proceeds of any extension of
     credit made pursuant to the Credit Documents to purchase or to carry Margin
     Stock or to any transaction prohibited by the Credit Documents or by Legal
     Requirements applicable to the Lenders.

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<PAGE>   46

     2.5. OPTION TO EXTEND MATURITIES OF CREDITS. So long as no Default exists,
the Company may request, by notice to the Lenders at least 90 days and not more
than 120 days prior to the Maturity Date, that the Maturity Date be extended for
an additional period not longer than 12 months, but in no event to a date later
than March 29, 2003. The Lenders shall consider such request in their sole
discretion, and may propose additional terms, including any changes in the
interest rates, as a condition to any extension. The Lenders shall provide a
written response to the Borrower not later than 45 days after receipt of such
request. In no event shall the Maturity Date be extended hereunder without the
consent of each of the Lenders (giving effect to any Replacement Lender under
Section 11.3). In the event the Lenders offer to extend the Maturity Date
pursuant to this Section 2.5, the Company may accept such offer by written
notice received by the Agent not later than 30 days after receipt by the Company
of such offer.

     2.6. SETTLEMENT UNDER THE CASH MANAGEMENT AGREEMENT. On each Settlement
Date, the Agent shall, not later than 11:00 a.m. (Boston time), give telephonic
or facsimile notice (a) to the Lenders and the Company of the net outstanding
amount of loans made, or the net amount of repayments of the Revolving Loan
received, as the case may be, by the Agent on behalf of the Lenders under the
Cash Management Agreement since the immediately preceding Settlement Date
through the close of business on the prior Banking Day and (b) to the Lenders of
the amount (a "SETTLEMENT AMOUNT") that each Lender shall pay or receive, as the
case may be, to effect a Settlement of the Revolving Loan. A statement of the
Agent submitted to the Lenders and the Company with respect to any amounts owing
under this Section 2.6 shall be prima facie evidence of the amount due and
owing. Each Lender shall, not later than 3:00 p.m. (Boston time) on such
Settlement Date, send to or receive from the Agent, as the case may be, a wire
transfer of immediately available funds in the amount of the Settlement Amount
for such Lender. All funds advanced by any Lender pursuant to this Section 2.6
shall for all purposes be treated as an advance under the Revolving Loan made by
such Lender to the Company and all funds received by any Lender pursuant to this
Section 2.6 shall for all purposes be treated as repayment of the Revolving Loan
made to such Lender. In the event that any bankruptcy, reorganization,
liquidation, receivership or similar case or proceeding in which the Company is
a debtor prevents a Lender from making any advance under the Revolving Loan to
effect a Settlement as contemplated hereby, such Lender will make such
dispositions and arrangements with the other Lenders with respect to such
advance under the Revolving Loan, either by way of purchase of participations,
distribution, assignment of claims, subrogation or otherwise, as shall result in
each Lender's share of the outstanding Revolving Loan being equal, as nearly
practicable, to such Lender's Percentage Interest in the Revolving Loan.

3.   INTEREST; LIBOR PRICING OPTIONS; FEES.

     3.1. INTEREST. The Loan shall accrue and bear interest at a rate per annum
which shall at all times equal the Applicable Rate. Prior to any stated or
accelerated maturity of the

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<PAGE>   47

Loan, the Company will, on each Payment Date, pay the accrued and unpaid
interest on the portion of the Loan which was not subject to a LIBOR Pricing
Option. On the last day of each LIBOR Interest Period or on any earlier
termination of any LIBOR Pricing Option, the Company will pay the accrued and
unpaid interest on the portion of the Loan which was subject to the LIBOR
Pricing Option which expired or terminated on such date. In the case of any
LIBOR Interest Period longer than three months, the Company will also pay the
accrued and unpaid interest on the portion of the Loan subject to the LIBOR
Pricing Option having such LIBOR Interest Period at three-month intervals, the
first such payment to be made on the last Banking Day of the three-month period
which begins on the first day of such LIBOR Interest Period. On the stated or
any accelerated maturity of the Loan, the Company will pay all accrued and
unpaid interest on the Loan, including any accrued and unpaid interest on any
portion of the Loan which is subject to a LIBOR Pricing Option. Upon the
occurrence and during the continuance of an Event of Default, the Lenders may
require accrued interest to be payable on demand or at regular intervals more
frequent than each Payment Date. All payments of interest hereunder shall be
made to the Agent for the account of each Lender in accordance with such
Lender's Percentage Interest therein.

     3.2. LIBOR PRICING OPTIONS.

          3.2.1. ELECTION OF LIBOR PRICING OPTIONS. Subject to all of the terms
     and conditions hereof and so long as no Default exists, the Company may
     from time to time, by irrevocable notice to the Agent actually received by
     noon (Boston time) not less than three Banking Days prior to the
     commencement of the LIBOR Interest Period selected in such notice, elect to
     have such portion of the Loan as the Company may specify in such notice
     accrue and bear interest during the LIBOR Interest Period so selected at
     the Applicable Rate computed on the basis of the LIBOR Rate. In the event
     the Company at any time does not elect a LIBOR Pricing Option under this
     Section 3.2.1 for any portion of the Loan (upon termination of a LIBOR
     Pricing Option or otherwise), then such portion of the Loan will accrue and
     bear interest at the Applicable Rate based on the Base Rate. A single LIBOR
     Pricing Option may include any portion of the Revolving Loan or Acquisition
     Loan designated by the Company in the notice referred to above so long as
     the Percentage Interests of the Lenders are the same for each such portion
     of the Loan. No election of a LIBOR Pricing Option shall become effective:

          (1)  if, prior to the commencement of any such LIBOR Interest Period,
     the Agent determines that (i) the electing or granting of the LIBOR Pricing
     Option in question would violate a Legal Requirement, (ii) LIBOR Deposits
     in an amount comparable to the amount of the Loan as to which such LIBOR
     Pricing Option has been elected and which have a term corresponding to the
     proposed LIBOR Interest Period are not readily available in the inter-bank
     LIBOR market or (iii) by reason of circumstances affecting the inter-bank
     LIBOR market, adequate and reasonable methods

                                      -34-

<PAGE>   48

     do not exist for ascertaining the interest rate applicable to such deposits
     for the proposed LIBOR Interest Period; or

          (2)  if the Required Lenders shall have advised the Agent by telephone
     or otherwise at or prior to noon (Boston time) on the second Banking Day
     prior to the commencement of such proposed LIBOR Interest Period (and shall
     have subsequently confirmed in writing) that, after reasonable efforts to
     determine the availability of such LIBOR Deposits, the Required Lenders
     reasonably anticipate that LIBOR Deposits in an amount equal to the
     Percentage Interest of the Required Lenders in the portion of the Loan as
     to which such LIBOR Pricing Option has been elected and which have a term
     corresponding to the LIBOR Interest Period in question will not be offered
     in the LIBOR market to the Required Lenders at a rate of interest that does
     not exceed the anticipated LIBOR Basic Rate.

          3.2.2. NOTICE TO LENDERS AND THE COMPANY. The Agent will promptly
     inform each Lender (by telephone or otherwise) of each notice received by
     it from the Company pursuant to Section 3.2.1 and of the LIBOR Interest
     Period specified in such notice. Upon determination by the Agent of the
     LIBOR Rate for such LIBOR Interest Period or in the event such election
     shall not become effective, the Agent will promptly notify the Company and
     each Lender (by telephone or otherwise) of the LIBOR Rate so determined or
     why such election did not become effective, as the case may be.

          3.2.3. SELECTION OF LIBOR INTEREST PERIODS. LIBOR Interest Periods
     shall be selected so that:

          (1)  the minimum portion of the Loan subject to any LIBOR Pricing
     Option shall be $2,000,000 and an integral multiple of $500,000;

          (2)  no more than six LIBOR Pricing Options shall be outstanding at
     any one time;

          (3)  no LIBOR Interest Period shall expire later than the Maturity
     Date; and (1)

          (4)  prior to the date 60 days after the Initial Closing Date or the
     earlier date the Agent informs the Company that the proposed initial
     syndication of the credit facilities provided hereby will close, no LIBOR
     Interest Period shall extend beyond such date except with the written
     consent of the Agent, which consent shall not be unreasonably withheld. The
     Company and the Agent shall confer about the appropriate scheduling of the
     selection of LIBOR Interest Periods to facilitate the anticipated
     syndication of the credit facilities provided herein to other Lenders.

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<PAGE>   49

          3.2.4. REIMBURSEMENT OF BREAKAGE COSTS. If any portion of the Loan
     subject to a LIBOR Pricing Option is repaid, or any LIBOR Pricing Option is
     terminated for any reason (including acceleration of maturity), on a date
     which is prior to the last Banking Day of the LIBOR Interest Period
     applicable to such LIBOR Pricing Option, the Company will pay to the Agent
     for the account of each Lender in accordance with such Lender's Percentage
     Interest, in addition to any amounts of interest otherwise payable
     hereunder, an amount equal to the present value (calculated in accordance
     with this Section 3.2.4) of interest for the unexpired portion of such
     LIBOR Interest Period on the portion of the Loan so repaid, or as to which
     a LIBOR Pricing Option was so terminated, at a per annum rate equal to the
     excess, if any, of (a) the rate applicable to such LIBOR Pricing Option
     MINUS (b) the lowest rate of interest obtainable by the Agent upon the
     purchase of debt securities customarily issued by the Treasury of the
     United States of America which have a maturity date approximating the last
     Banking Day of such LIBOR Interest Period. The present value of such
     additional interest shall be calculated by discounting the amount of such
     interest for each day in the unexpired portion of such LIBOR Interest
     Period from such day to the date of such repayment or termination at a per
     annum interest rate equal to the interest rate determined pursuant to
     clause (b) of the preceding sentence, and by adding all such amounts for
     all such days during such period. The determination by the Agent of such
     amount of interest shall, in the absence of manifest error, be conclusive.
     For purposes of this Section 3.2.4, if any portion of the Loan which was to
     have been subject to a LIBOR Pricing Option is not outstanding on the first
     day of the LIBOR Interest Period applicable to such LIBOR Pricing Option
     other than for reasons described in Section 3.2.1 or as a result of the
     failure of any Lender to perform its obligations under Section 2, the
     Company shall be deemed to have terminated such LIBOR Pricing Option.

          3.2.5. VIOLATION OF LEGAL REQUIREMENTS. If any mandatory Legal
     Requirement shall prevent any Lender from funding or maintaining through
     the purchase of deposits in the interbank LIBOR market any portion of the
     Loan subject to a LIBOR Pricing Option or otherwise from giving effect to
     such Lender's obligations as contemplated by Section 3.2, (a) the Agent may
     by notice to the Company terminate all of the affected LIBOR Pricing
     Options of such Lender on the respective last day of the then current LIBOR
     Interest Period with respect to such Loan or within such earlier period as
     required by law, (b) the portion of the Loan subject to such terminated
     LIBOR Pricing Options shall immediately bear interest thereafter at the
     Applicable Rate computed on the basis of the Base Rate and (c) the Company
     shall make any payment required by Section 3.2.4. The Company shall be
     entitled to replace any such Lender in accordance with Section 11.3.

          3.2.6. FUNDING PROCEDURE. The Lenders may fund any portion of the Loan
     subject to a LIBOR Pricing Option out of any funds available to the
     Lenders. Regardless of the source of the funds actually used by any of the
     Lenders to fund any

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<PAGE>   50

     portion of the Loan subject to a LIBOR Pricing Option, however, all amounts
     payable hereunder, including the interest rate applicable to any such
     portion of the Loan and the amounts payable under Sections 3.2.4 and 3.5,
     shall be computed as if each Lender had actually funded such Lender's
     Percentage Interest in such portion of the Loan through the purchase of
     deposits in such amount of the type by which the LIBOR Basic Rate was
     determined with a maturity the same as the applicable LIBOR Interest Period
     relating thereto and through the transfer of such deposits from an office
     of the Lender having the same location as the applicable LIBOR Office to
     one of such Lender's offices in the United States of America.

     3.3. COMMITMENT FEES.

          3.3.1. REVOLVING CREDIT COMMITMENT FEE. In consideration of the
     Lenders' commitments to make the extensions of credit provided for in
     Section 2.1, while such commitments are outstanding, the Company will pay
     to the Agent for the account of the Lenders in accordance with the Lenders'
     respective Commitments in the Revolving Loan, on each Payment Date, an
     amount equal to interest computed at the Commitment Fee Rate as of such
     Payment Date on the amount by which (a) the daily Maximum Amount of
     Revolving Credit during the three-month period or portion thereof ending on
     such Payment Date exceeded (b) the sum of (i) the daily Revolving Loan
     during such period or portion thereof PLUS (ii) the daily Letter of Credit
     Exposure during such period or portion thereof.

          3.3.2. ACQUISITION CREDIT COMMITMENT FEE. In consideration of the
     Lenders' commitments to make the extensions of credit provided for in
     Section 2.2, while such commitments are outstanding, the Company will pay
     to the Agent for the account of the Lenders in accordance with the Lenders'
     respective Commitments in the Acquisition Loan, on each Payment Date, an
     amount equal to interest computed at the Commitment Fee Rate as of such
     Payment Date on the respective amounts by which (a) the daily Maximum
     Amount of Acquisition Credit during the three-month period or portion
     thereof ending on such Payment Date exceeded (b) the daily Acquisition Loan
     during such period or portion thereof.

     3.4. LETTER OF CREDIT FEES. The Company will pay to the Agent for the
account of each of the Lenders, in accordance with the Lenders' respective
Percentage Interests, in arrears on each Payment Date, a Letter of Credit fee
equal to interest at a rate per annum equal to the sum of (a) the Applicable
Margin indicated for the LIBOR Rate plus (b) an additional 2% per annum
effective on the day the Agent provides written notice to the Company that the
interest rates hereunder are increasing as a result of the occurrence and
continuance of an Event of Default until the earlier of such time as (i) such
Event of Default is no longer continuing or (ii) such Event of Default is deemed
no longer to exist, in each case pursuant to Section 8.3, on the daily Letter of
Credit Exposure during the three-month period or portion thereof ending

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<PAGE>   51

on such Payment Date. The Company will pay to the Letter of Credit Issuer, for
its own account, on the date such Letter of Credit is issued, extended, renewed
or amended, an amount equal to (i) interest computed at the rate of 0.125% per
annum on the amount of such Letter of Credit being issued and (ii) customary
service charges and expenses for its services in connection with such Letter of
Credit at the times and in the amounts from time to time in effect in accordance
with its general rate structure, including fees and expenses relating to
issuance, amendment, negotiation, cancellation and similar operations.

     3.5. CHANGES IN CIRCUMSTANCES; YIELD PROTECTION.

          3.5.1. RESERVE REQUIREMENTS, ETC. If any Legal Requirement shall (a)
     impose, modify, increase or deem applicable any insurance assessment,
     reserve, special deposit or similar requirement against any Funding
     Liability or the Letters of Credit, (b) impose, modify, increase or deem
     applicable any other requirement or condition with respect to any Funding
     Liability or the Letters of Credit or (c) change the basis of taxation of
     Funding Liabilities or payments in respect of any Letter of Credit (other
     than changes in the rate of taxes measured by the overall net income of
     such Lender) and the effect of any of the foregoing shall be to increase
     the cost to any Lender of issuing, making, funding or maintaining its
     respective Percentage Interest in any portion of the Loan subject to a
     LIBOR Pricing Option or any Letter of Credit, to reduce the amounts
     received or receivable by such Lender under this Agreement or to require
     such Lender to make any payment or forego any amounts otherwise payable to
     such Lender under this Agreement (other than any Tax or any reserves that
     are included in computing the LIBOR Reserve Rate), then such Lender may
     claim compensation from the Company under Section 3.5.5.

          3.5.2. TAXES. All payments of the Credit Obligations shall be made
     without set-off or counterclaim and free and clear of any deductions,
     including deductions for Taxes, unless the Company is required by law to
     make such deductions. If (a) any Lender shall be subject to any Tax with
     respect to any payment of the Credit Obligations or its obligations
     hereunder or (b) the Company shall be required to withhold or deduct any
     Tax on any payment on the Credit Obligations, then such Lender may claim
     compensation from the Company under Section 3.5.5 to the extent such Lender
     is then in compliance with any applicable requirements of Section 13.
     Whenever Taxes must be withheld by the Company with respect to any payments
     of the Credit Obligations, the Company shall promptly furnish to the Agent
     for the account of the applicable Lender official receipts (to the extent
     that the relevant governmental authority delivers such receipts) evidencing
     payment of any such Taxes so withheld. If the Company fails to pay any such
     Taxes when due or fails to remit to the Agent for the account of the
     applicable Lender the required receipts evidencing payment of any such
     Taxes so withheld or deducted, the Company shall indemnify the affected
     Lender for any incremental Taxes and interest or penalties that may become
     payable by such

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<PAGE>   52

     Lender as a result of any such failure. In the event any Lender receives a
     refund of any Taxes for which it has received payment from the Company
     under this Section 3.5.2, such Lender shall promptly pay the amount of such
     refund to the Company, together with any interest thereon actually earned
     by such Lender.

          3.5.3. CAPITAL ADEQUACY. If any Lender shall determine that compliance
     by such Lender with any Legal Requirement regarding capital adequacy of
     banks or bank holding companies has or would have the effect of reducing
     the rate of return on the capital of such Lender and its Affiliates as a
     consequence of such Lender's commitment to make the extensions of credit
     contemplated hereby, or such Lender's maintenance of the extensions of
     credit contemplated hereby, to a level below that which such Lender could
     have achieved but for such compliance (taking into consideration the
     policies of such Lender and its Affiliates with respect to capital adequacy
     immediately before such compliance and assuming that the capital of such
     Lender and its Affiliates was fully utilized prior to such compliance) by
     an amount deemed by such Lender to be material, then such Lender may claim
     compensation from the Company under Section 3.5.5.

          3.5.4. REGULATORY CHANGES. If any Lender shall determine that (a) any
     change in any Legal Requirement (including any new Legal Requirement) after
     the date hereof shall directly or indirectly (i) reduce the amount of any
     sum received or receivable by such Lender with respect to the Loan or the
     Letters of Credit or the return to be earned by such Lender on the Loan or
     the Letters of Credit, (ii) impose a cost on such Lender or any Affiliate
     of such Lender that is attributable to the making or maintaining of, or
     such Lender's commitment to make, its portion of the Loan or the Letters of
     Credit, or (iii) require such Lender or any Affiliate of such Lender to
     make any payment on, or calculated by reference to, the gross amount of any
     amount received by such Lender under any Credit Document (other than Taxes
     or income or franchise taxes), and (b) such reduction, increased cost or
     payment shall not be fully compensated for by an adjustment in the
     Applicable Rate or the Letter of Credit fees, then such Lender may claim
     compensation from the Company under Section 3.5.5.

          3.5.5. COMPENSATION CLAIMS. Within 15 days after the receipt by the
     Company of a certificate from any Lender setting forth why it is claiming
     compensation under this Section 3.5 and computations (in reasonable detail)
     of the amount thereof, the Company shall pay to such Lender such additional
     amounts as such Lender sets forth in such certificate as sufficient fully
     to compensate it on account of the foregoing provisions of this Section
     3.5, together with interest on such amount from the 15th day after receipt
     of such certificate until payment in full thereof at the Overdue
     Reimbursement Rate. The determination by such Lender of the amount to be
     paid to it and the basis for computation thereof hereunder shall be
     conclusive so long as (a) such determination is made in good faith, (b) no
     manifest error appears therein and (c) the

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<PAGE>   53

     Lender uses reasonable averaging and attribution methods. The Company shall
     be entitled to replace any such Lender in accordance with Section 11.3.

          3.5.6. MITIGATION. Each Lender shall take such commercially reasonable
     steps as it may determine are not materially disadvantageous to it,
     including changing lending offices to the extent feasible, in order to
     reduce amounts otherwise payable by the Company to such Lender pursuant to
     Sections 3.2.4 and 3.5 or to make LIBOR Pricing Options available under
     Sections 3.2.1 and 3.2.5. In addition, the Company shall not be responsible
     for costs (a) under Section 3.5 arising more than 90 days prior to receipt
     by the Company of the certificate from the affected Lender pursuant to such
     Section 3.5 or (b) under Section 3.2.4 arising from the termination of
     LIBOR Pricing Options more than 90 days prior to the demand by the Agent
     for payment under Section 3.2.4.

     3.6. COMPUTATIONS OF INTEREST AND FEES. For purposes of this Agreement,
interest, commitment fees and Letter of Credit fees (and any other amount
expressed as interest or such fees) shall be computed on the basis of a 360-day
year for actual days elapsed; PROVIDED, HOWEVER, that interest on any portion of
the Loan for which interest is calculated on the basis of the Base Rate shall be
computed on the basis of a 365/6-day year. If any payment required by this
Agreement becomes due on any day that is not a Banking Day, such payment shall,
except as otherwise provided in the definition of "LIBOR Interest Period", be
made on the next succeeding Banking Day. If the due date for any payment of
principal is extended as a result of the immediately preceding sentence,
interest shall be payable for the time during which payment is extended at the
Applicable Rate.

4.   PAYMENT.

     4.1. PAYMENT AT MATURITY. On the Maturity Date or any accelerated maturity
of the Loan, the Company will pay to the Agent an amount equal to the Loan then
due, together with all accrued and unpaid interest and fees with respect thereto
and all other Credit Obligations then outstanding.

     4.2. CONTINGENT REQUIRED PREPAYMENTS.

          4.2.1. EXCESS CREDIT EXPOSURE. If at any time the Revolving Loan
     exceeds the limits set forth in Section 2.1 or the Acquisition Loan exceeds
     the limits set forth in Section 2.2, the Company shall within one Banking
     Day after actual knowledge by a Financial Officer or notice from the Agent
     pay the amount of such excess to the Agent as a prepayment of the Revolving
     Loan or the Acquisition Loan, as the case may be. If at any time the Letter
     of Credit Exposure exceeds the limits set forth in Section 2.3, the Company
     shall within one Banking Day after actual knowledge by a

                                      -40-

<PAGE>   54

     Financial Officer or notice from the Agent pay the amount of such excess to
     the Agent to be applied as provided in Section 4.4.

          4.2.2. NET ASSET SALE PROCEEDS. Upon receipt by the Company or any of
     its Subsidiaries of Net Asset Sale Proceeds or net proceeds of asset sales
     permitted by Section 6.11.7, the Company shall within one Banking Day pay
     to the Agent as a prepayment of the Loan to be applied as provided in
     Section 4.5.2 the lesser of (a) the amount of such Net Asset Sale Proceeds
     or (b) the amount of the Loan.

          4.2.3. NET DEBT PROCEEDS. Upon receipt of Net Debt Proceeds by the
     Company or any of its Subsidiaries, the Company shall within one Banking
     Day pay to the Agent as a prepayment of the Loan to be applied as provided
     in Section 4.5.2 the lesser of (a) the amount of such Net Debt Proceeds or
     (b) the amount of the Loan.

          4.2.4. NET EQUITY PROCEEDS. Upon receipt of Net Equity Proceeds by the
     Company or any of its Subsidiaries, the Company shall within one Banking
     Day pay to the Agent as a prepayment of the Loan to be applied as provided
     in Section 4.5.2 the lesser of (a) the amount of such Net Equity Proceeds
     or (b) the amount of the Loan.

          4.2.5. CASH MANAGEMENT AGREEMENT. At the times and in the amounts
     required by the Cash Management Agreement, the Company will pay to the
     Agent for the account of the Lenders prepayments of the Revolving Loan.

     4.3. VOLUNTARY PREPAYMENTS. In addition to the prepayments required by
Section 4.2, the Company may from time to time prepay all or any portion of the
Loan (in a minimum amount of $1,000,000 and an integral multiple of $500,000,
except with respect to payments made pursuant to the Cash Management Agreement
as to which no minimum amount shall apply, or such lesser amount as is then
outstanding), without premium or penalty of any type (except as provided in
Section 3.2.4 with respect to the early termination of LIBOR Pricing Options).
The Company shall give the Agent at least one Banking Day prior notice of its
intention to prepay the Loan under this Section 4.3, specifying the date of
payment and the total amount of the Revolving Loan and the Acquisition Loan to
be paid on such date.

     4.4. LETTERS OF CREDIT. If on the Maturity Date or any accelerated maturity
of the Credit Obligations the Lenders shall be obligated in respect of a Letter
of Credit or a draft accepted under a Letter of Credit, the Company will either:

          (1) prepay such obligation by depositing cash with the Agent, or

          (2) deliver to the Agent a standby letter of credit (designating the
     Letter of Credit Issuer as beneficiary and issued by a bank and on terms
     reasonably acceptable to the Letter of Credit Issuer),

                                      -41-

<PAGE>   55

in each case in an amount equal to the portion of the then Letter of Credit
Exposure issued for the account of the Company. Any such cash so deposited and
the cash proceeds of any draw under any standby Letter of Credit so furnished,
including any interest thereon, shall be returned by the Agent to the Company
only when, and to the extent that, the amount of such cash held by the Agent
exceeds the Letter of Credit Exposure at such time and no Default then exists;
PROVIDED, HOWEVER, that if an Event of Default occurs and the Credit Obligations
become or are declared immediately due and payable, the Agent may apply such
cash, including any interest thereon, to the payment of any of the Credit
Obligations.

     4.5. REBORROWING; APPLICATION OF PAYMENTS, ETC.

          4.5.1. REBORROWING. The amounts of the Revolving Loan or the
     Acquisition Loan prepaid pursuant to Sections 4.2.1, 4.2.4, 4.2.5, 4.3 or
     from the net proceeds from dispositions of assets permitted by Section
     6.11.7 may be reborrowed from time to time prior to the Maturity Date in
     accordance with Sections 2.1 and 2.2, subject to the limits set forth
     therein.

          4.5.2. ORDER OF APPLICATION. In the absence of notice to the contrary
     by the Company, any prepayment of the Loan pursuant to Sections 4.2.2,
     4.2.3, 4.2.4 or 4.3 shall be applied first to the Revolving Loan, with any
     balance to the Acquisition Loan. Subject to the foregoing, any prepayment
     of the Loan shall be applied first to the portion of the Revolving Loan or
     Acquisition Loan, as the case may be, not then subject to LIBOR Pricing
     Options, then the balance of any such prepayment shall be applied to the
     portion of the Revolving Loan or Acquisition Loan, as the case may be, then
     subject to LIBOR Pricing Options, in the chronological order of the
     respective maturities thereof (or as the Company may otherwise specify in
     writing), together with any payments required by Section 3.2.4.

          4.5.3. PAYMENTS FOR LENDERS. All payments of principal hereunder shall
     be made to the Agent for the account of the Lenders in accordance with the
     Lenders' respective Percentage Interests in the Credit Obligations so
     repaid.

5.   CONDITIONS TO EXTENDING CREDIT.

     5.1. CONDITIONS ON INITIAL CLOSING DATE. The obligations of the Lenders to
make the initial extension of credit pursuant to Section 2 shall be subject to
the satisfaction, on or before the Initial Closing Date, of the conditions set
forth in this Section 5.1 as well as the further conditions in Section 5.2. If
the conditions set forth in this Section 5.1 are not met on or prior to the
Initial Closing Date, the Lenders shall have no obligation to make any
extensions of credit hereunder.

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<PAGE>   56

          5.1.1. NOTES. The Company shall have duly executed and delivered to
     the Agent a Revolving Note and an Acquisition Note for each Lender having a
     Commitment with respect thereto who has requested delivery of a Note prior
     to the Initial Closing Date.

          5.1.2. PAYMENT OF FEES. The Company shall have paid to the Agent and
     the Syndication Agent the fees contemplated by the separate letter
     agreement among the Agent, the Syndication Agent, certain of their
     respective affiliates and the Company dated prior to the date hereof, which
     fees may be paid from proceeds of the initial loan made pursuant to Section
     2.

          5.1.3. LEGAL OPINIONS. On the Initial Closing Date, the Lenders shall
     have received from the following special counsel for the Company and its
     Subsidiaries their respective opinions with respect to the transactions
     contemplated by the Credit Documents, which opinions shall be in form and
     substance reasonably satisfactory to the Required Lenders:

          (1)  Latham & Watkins;

          (2)  Maron & Sandler; and

          (3)  Perkins, Smith & Cohen.

          The Company authorizes and directs its special counsels to furnish the
     foregoing opinions.

          5.1.4. GUARANTEE AND SECURITY AGREEMENT. Each of the Company and its
     Domestic Subsidiaries (other than Cranberry Hill Capital) shall have duly
     authorized, executed and delivered to the Agent a Guarantee and Security
     Agreement in substantially the form of Exhibit 5.1.4 (the "GUARANTEE AND
     SECURITY AGREEMENT").

          5.1.5. PERFECTION OF SECURITY. Each Obligor shall have duly
     authorized, executed, acknowledged, delivered, filed, registered and
     recorded such security agreements, notices, financing statements, memoranda
     of intellectual property security interests and other instruments as the
     Agent may have reasonably requested in order to perfect the Liens purported
     or required pursuant to the Credit Documents to be created in the Credit
     Security and shall have paid all filing or recording fees or taxes required
     to be paid in connection therewith, including any recording, mortgage,
     documentary, transfer or intangible taxes.

          5.1.6. SUBORDINATION AGREEMENT. Each of Knowledge Universe and the
     Company shall have duly authorized, executed and delivered to the Agent a

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<PAGE>   57

     Subordination Agreement in substantially the form of Exhibit 5.1.6 (the
     "SUBORDINATION AGREEMENT").

          5.1.7. SOLVENCY.

          (1)  After giving effect to the incurrence of the Credit Obligations,
     the Company and its Domestic Subsidiaries, taken as a whole:

               (1)  will be solvent;

               (2)  will have assets having a fair saleable value in excess of
          the amount required to pay their probable liability on their existing
          debts as such debts become absolute and mature;

               (3)  will have access to adequate capital for the conduct of
          their business; and

               (4)  will have the ability to pay their debts from time to time
          incurred as such debts mature.

          (2)  The Company shall have furnished to the Lenders a certificate,
     signed by a Financial Officer, to such effect, together with calculations
     pursuant to Section 7.2.1(d) with respect to the Computation Covenants, in
     each case giving pro forma effect to the incurrence of the Credit
     Obligations.

          5.1.8. TERMINATION OF PRIOR CREDIT AGREEMENT. Contemporaneously with
     the initial advances hereunder, the Company and its Subsidiaries shall have
     paid in full all principal, interest and other accrued and outstanding
     amounts under the Prior Credit Agreement (other than reimbursement
     obligations with respect to letters of credit issued under the Prior Credit
     Agreement that constitute Letters of Credit under this Agreement in
     accordance with Section 2.3.1), all Liens securing amounts owing under the
     Prior Credit Agreement shall have been released or assigned to the Agent
     and the Prior Credit Agreement shall have become terminated and of no
     further force or effect (except for indemnity provisions that by their
     terms survive the termination of the Prior Credit Agreement).

          5.1.9. PROPER PROCEEDINGS. This Agreement, each other Credit Document
     and the transactions contemplated hereby and thereby shall have been
     authorized by all necessary corporate or other proceedings. All necessary
     consents, approvals and authorizations of any governmental or
     administrative agency or any other Person of any of the transactions
     contemplated hereby or by any other Credit Document shall have been
     obtained and shall be in full force and effect.

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<PAGE>   58

          5.1.10. GENERAL. All legal and corporate proceedings in connection
     with the transactions contemplated by this Agreement shall be reasonably
     satisfactory in form and substance to the Agent and the Agent shall have
     received copies of all documents, including certified copies of the Charter
     and By-Laws of the Company and the other Obligors, records of corporate
     proceedings, certificates as to signatures and incumbency of officers and
     opinions of counsel, which the Agent may have reasonably requested in
     connection therewith, such documents where appropriate to be certified by
     proper corporate or governmental authorities.

     5.2. CONDITIONS TO EACH EXTENSION OF CREDIT. The obligations of the Lenders
to make any extension of credit pursuant to Section 2 shall be subject to the
satisfaction, on or before the Closing Date for such extension of credit, of the
following conditions:

          5.2.1. OFFICER'S CERTIFICATE. The representations and warranties
     contained in Section 7 shall be true and correct on and as of such Closing
     Date with the same force and effect as though made on and as of such date
     (except as to any representation or warranty which refers to a specific
     earlier date); no Default shall exist on such Closing Date prior to or
     immediately after giving effect to the requested extension of credit; no
     Material Adverse Change shall have occurred; in the event of an advance
     under the Acquisition Loan, the proceeds shall be used to finance all or a
     portion of an acquisition permitted by Section 6.9 and, on the Initial
     Closing Date, amounts outstanding under the Prior Credit Agreement; and,
     except in connection with a loan made in accordance with the Cash
     Management Agreement in a principal amount less than $250,000 (and loans up
     to $2,500,000 made on the first and fifteenth days of the month for payroll
     purposes), the Company shall have furnished to the Agent in connection with
     the requested extension of credit a certificate to these effects, in
     substantially the form of Exhibit 5.2.1, signed by a Financial Officer.

          5.2.2. LEGALITY, ETC. The making of the requested extension of credit
     shall not (a) subject any Lender to any penalty or special tax (other than
     a Tax for which the Company is required to reimburse the Lenders under
     Section 3.5), (b) be prohibited by any Legal Requirement or (c) violate any
     credit restraint program of the executive branch of the government of the
     United States of America, the Board of Governors of the Federal Reserve
     System or any other governmental or administrative agency so long as any
     Lender reasonably believes that compliance therewith is customary
     commercial practice.

6.   GENERAL COVENANTS. Each of the Company and the other Guarantors covenants
that, until all of the Credit Obligations shall have been paid in full and until
the Lenders' commitments to extend credit under this Agreement and any other
Credit Document shall have

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<PAGE>   59

been irrevocably terminated, the Company and its Subsidiaries will comply with
the following provisions:

     6.1. TAXES AND OTHER CHARGES; ACCOUNTS PAYABLE.

          6.1.1. TAXES AND OTHER CHARGES. Each of the Company and its
     Subsidiaries shall duly pay and discharge, or cause to be paid and
     discharged, before the same becomes in arrears, all taxes, assessments and
     other governmental charges imposed upon such Person and its properties,
     sales or activities, or upon the income or profits therefrom, as well as
     all claims for labor, materials or supplies which if unpaid might by law
     become a Lien upon any of its property; PROVIDED, HOWEVER, that any such
     tax, assessment, charge or claim need not be paid if the validity or amount
     thereof shall at the time be contested in good faith by appropriate
     proceedings and if such Person shall, in accordance with GAAP, have set
     aside on its books adequate reserves with respect thereto; and PROVIDED,
     FURTHER, that each of the Company and its Subsidiaries shall pay or bond,
     or cause to be paid or bonded, all such taxes, assessments, charges or
     other governmental claims immediately upon the commencement of proceedings
     to foreclose any Lien which may have attached as security therefor (except
     to the extent such proceedings have been dismissed or stayed).

          6.1.2. ACCOUNTS PAYABLE. Each of the Company and its Subsidiaries
     shall promptly pay when due, or in conformity with customary trade terms,
     all accounts payable incident to the operations of such Person not referred
     to in Section 6.1.1; PROVIDED, HOWEVER, that any such accounts payable need
     not be paid if the validity or amount thereof shall at the time be
     contested in good faith and if such Person shall, in accordance with GAAP,
     have set aside on its books adequate reserves with respect thereto.

     6.2. CONDUCT OF BUSINESS, ETC.

          6.2.1. TYPES OF BUSINESS. The Company and its Subsidiaries shall
     engage only in the business of (a) business consulting, (b) minority
     investments in and cooperative ventures with Internet, intellectual
     property and other service-oriented businesses and (c) other activities
     related thereto.

          6.2.2. MAINTENANCE OF PROPERTIES. Each of the Company and its
     Subsidiaries:

          (1)  shall keep its properties in such repair, working order and
     condition, and shall from time to time make such repairs, replacements,
     additions and improvements thereto, as are necessary for the efficient
     operation of its businesses and shall comply at all times in all material
     respects with all material franchises, licenses and leases to

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<PAGE>   60

     which it is party so as to prevent any loss or forfeiture thereof or
     thereunder, except where (i) compliance is at the time being contested in
     good faith by appropriate proceedings and (ii) failure to comply with the
     provisions being contested has not resulted, and does not create a material
     risk of resulting, in the aggregate in any Material Adverse Change; and (1)

          (2)  shall do all things necessary to preserve, renew and keep in full
     force and effect and in good standing its legal existence and authority
     necessary to continue its business; PROVIDED, HOWEVER, that this Section
     6.2.2(b) shall not prevent the merger, consolidation or liquidation of
     Subsidiaries permitted by Section 6.11.

          6.2.3. STATUTORY COMPLIANCE. Each of the Company and its Subsidiaries
     shall comply in all material respects with all valid Legal Requirements
     applicable to it, except where (a) compliance therewith shall at the time
     be contested in good faith by appropriate proceedings and (b) failure so to
     comply with the provisions being contested has not resulted, and does not
     create a material risk of resulting, in the aggregate in any Material
     Adverse Change.

          6.2.4. COMPLIANCE WITH MATERIAL AGREEMENTS. Each of the Company and
     its Subsidiaries shall comply in all material respects with the Material
     Agreements (to the extent not in violation of the other provisions of this
     Agreement or any other Credit Document). Without the prior written consent
     of the Required Lenders, no Material Agreement shall be amended, modified,
     waived or terminated in any manner that would have in any material respect
     an adverse effect on the interests of the Lenders.

     6.3. INSURANCE.

          6.3.1. BUSINESS INTERRUPTION INSURANCE. Each of the Company and its
     Subsidiaries shall maintain with financially sound and reputable insurers
     insurance related to interruption of business, either for loss of revenues
     or for extra expense, in the manner customary for businesses of similar
     size engaged in similar activities.

          6.3.2. PROPERTY INSURANCE. Each of the Company and its Subsidiaries
     shall keep its assets which are of an insurable character insured by
     financially sound and reputable insurers against theft and fraud and
     against loss or damage by fire, explosion and hazards insured against by
     extended coverage to the extent, in amounts and with deductibles at least
     as favorable as those generally maintained by businesses of similar size
     engaged in similar activities.

          6.3.3. LIABILITY INSURANCE. Each of the Company and its Subsidiaries
     shall maintain with financially sound and reputable insurers insurance
     against liability

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<PAGE>   61

     for hazards, risks and liability to persons and property to the extent, in
     amounts and with deductibles at least as favorable as those generally
     maintained by businesses of similar size engaged in similar activities;
     PROVIDED, HOWEVER, that it may effect workers' compensation insurance or
     similar coverage with respect to operations in any particular state or
     other jurisdiction through an insurance fund operated by such state or
     jurisdiction or by meeting the self-insurance requirements of such state or
     jurisdiction.

     6.4. FINANCIAL STATEMENTS AND REPORTS. Each of the Company and its
Subsidiaries shall maintain a system of accounting in which correct entries
shall be made of all transactions in relation to their business and affairs in
accordance with generally accepted accounting practice. The fiscal year of the
Company and its Subsidiaries shall end on December 31 in each year and the
fiscal quarters of the Company and its Subsidiaries shall end on March 31, June
30, September 30 and December 31 in each year.

          6.4.1. ANNUAL REPORTS. The Company shall furnish to the Agent (with
     copies for each Lender) within 92 days after the end of each fiscal year,
     the Consolidated and Consolidating balance sheets of the Company and its
     Subsidiaries as at the end of such fiscal year, the Consolidated and
     Consolidating statements of income and Consolidated statements of changes
     in shareholders' equity and of cash flows of the Company and its
     Subsidiaries for such fiscal year (all in reasonable detail) and, in the
     case of Consolidated financial statements, comparative figures for the
     immediately preceding fiscal year, all accompanied by:

          (1)  Reports of independent certified public accountants of recognized
     national standing reasonably satisfactory to the Required Lenders,
     containing no material qualification, to the effect that they have audited
     the foregoing Consolidated financial statements in accordance with
     generally accepted auditing standards and that such Consolidated financial
     statements present fairly, in all material respects, the financial position
     of the Company and its Subsidiaries covered thereby at the dates thereof
     and the results of their operations for the periods covered thereby in
     conformity with GAAP.

          (2)  The statement of such accountants that they have caused this
     Agreement to be reviewed and that in the course of their audit of the
     Company and its Subsidiaries no facts have come to their attention that
     cause them to believe that any Default exists and in particular that they
     have no knowledge of any Default under the Computation Covenants or, if
     such is not the case, specifying such Default and the nature thereof. This
     statement is furnished by such accountants with the understanding that the
     examination of such accountants cannot be relied upon to give such
     accountants knowledge of any such Default except as it relates to
     accounting or auditing matters within the scope of their audit.

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<PAGE>   62

          (3)  A certificate of the Company signed by a Financial Officer to the
     effect that such officer has caused this Agreement to be reviewed and has
     no knowledge of any Default, or if such officer has such knowledge,
     specifying such Default and the nature thereof, and what action the Company
     has taken, is taking or proposes to take with respect thereto.

          (4)  Computations by the Company comparing the financial statements
     referred to above with the most recent budget for such fiscal year
     furnished to the Agent in accordance with Section 6.4.4.

          (5)  Computations by the Company in substantially the form of Exhibit
     6.4 demonstrating, as of the end of such fiscal year, compliance with the
     Computation Covenants, signed by a Financial Officer.

          (6)  Calculations, as at the end of such fiscal year, of (i) the
     Accumulated Benefit Obligations for each Plan (other than Multiemployer
     Plans) having Accumulated Benefit Obligations in excess of $1,000,000 and
     (ii) the fair market value of the assets of such Plan allocable to such
     benefits.

          (7)  Supplements to Exhibits 7.1, 7.3, 7.14 and 7.15 showing any
     changes in the information set forth in such exhibits not previously
     furnished to the Agent in writing, as well as any changes in the Charter,
     Bylaws or incumbency of officers of the Obligors from those previously
     certified to the Agent.

          (8)  In the event of a change in GAAP after December 31, 1998,
     computations by the Company, signed by a Financial Officer, reconciling the
     financial statements referred to above with financial statements prepared
     in accordance with GAAP as applied to the other covenants in Section 6 and
     related definitions.

          (9)  In reasonable detail, management's discussion and analysis of the
     results of operations and the financial condition of the Company and its
     Subsidiaries as at the end of and for the year covered by such financial
     statements.

          6.4.2. QUARTERLY REPORTS. The Company shall furnish to the Agent (with
     copies for each Lender) within 47 days after the end of each of the first
     three fiscal quarters of the Company, the internally prepared Consolidated
     and Consolidating balance sheets of the Company and its Subsidiaries as of
     the end of such fiscal quarter, the Consolidated and Consolidating
     statements of income and the Consolidated statements of changes in
     shareholders' equity and of cash flows of the Company and its Subsidiaries
     for such fiscal quarter and for the portion of the fiscal year then ended
     (all in reasonable detail) and comparative figures for the same period in
     the preceding fiscal year, all accompanied by:

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<PAGE>   63

          (1)  A certificate of the Company signed by a Financial Officer to the
     effect that such financial statements have been prepared in accordance with
     GAAP and present fairly, in all material respects, the financial position
     of the Company and its Subsidiaries covered thereby at the dates thereof
     and the results of their operations for the periods covered thereby,
     subject only to normal year-end audit adjustments and the addition of
     footnotes.

          (2)  A certificate of the Company signed by a Financial Officer to the
     effect that such officer has caused this Agreement to be reviewed and has
     no knowledge of any Default, or if such officer has such knowledge,
     specifying such Default and the nature thereof and what action the Company
     has taken, is taking or proposes to take with respect thereto.

          (3)  Computations by the Company comparing the financial statements
     referred to above with the most recent budget for the period covered
     thereby furnished to the Agent in accordance with Section 6.4.4.

          (4)  Computations by the Company in substantially the form of Exhibit
     6.4 demonstrating, as of the end of such quarter, compliance with the
     Computation Covenants, signed by a Financial Officer.

          (5)  Supplements to Exhibits 7.1, 7.3, 7.14 and 7.15 showing any
     changes in the information set forth in such exhibits not previously
     furnished to the Agent in writing, as well as any changes in the Charter,
     Bylaws or incumbency of officers of the Obligors from those previously
     certified to the Agent.

          (6)  In reasonable detail, management's discussion and analysis of the
     results of operations and financial condition of the Company and its
     Subsidiaries as at the end of and for the fiscal period covered by the
     financial statements referred to above.

          6.4.3. MONTHLY REPORTS. The Company shall furnish to the Agent (with
     copies for each Lender) as soon as available and, in any event, within 25
     days after the end of each month (other than months that coincide with the
     end of a fiscal quarter of the Company), the internally prepared
     Consolidated balance sheet of the Company and its Subsidiaries as at the
     end of such month and the Consolidated statements of income and of cash
     flows of the Company and its Subsidiaries for such month (all in reasonable
     detail), together with other financial reporting items in substantially the
     form of the Company's internal monthly reports, all accompanied by a
     certificate of the Company signed by a Financial Officer to the effect that
     such financial statements were prepared in accordance with GAAP and present
     fairly, in all material respects, the financial position of the Persons
     covered thereby at the dates thereof and the results of their

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<PAGE>   64

     operations for the periods covered thereby, subject only to normal year-end
     audit adjustments and the addition of footnotes.

          6.4.4. OTHER REPORTS. The Company shall promptly furnish to the Agent
     (with copies for each Lender):

          (1)  As soon as prepared and in any event before the beginning of each
     fiscal year, an annual budget and operating projections for such fiscal
     year of the Company and its Subsidiaries, prepared in a manner consistent
     with the manner in which the financial projections described in Section
     7.2.1 were prepared.

          (2)  Any material updates of such budget and projections.

          (3)  Any management letters furnished to the Company or any of its
     Subsidiaries by the Company's auditors.

          (4)  All budgets, projections, statements of operations and other
     reports furnished generally to the shareholders of the Company.

          (5)  Such registration statements, proxy statements and reports,
     including Forms S-1, S-2, S-3, S-4, 10-K, 10-Q and 8-K, as may be filed by
     the Company or any of its Subsidiaries with the Securities and Exchange
     Commission.

          (6)  Any 90-day letter or 30-day letter from the federal Internal
     Revenue Service (or the equivalent notice received from state or other
     taxing authorities) asserting tax deficiencies against the Company or any
     of its Subsidiaries.

          6.4.5. NOTICE OF LITIGATION, DEFAULTS, ETC. The Company shall promptly
     furnish to the Agent notice of any litigation or any administrative or
     arbitration proceeding (a) which creates a material risk of resulting,
     after giving effect to any applicable insurance, in the payment by the
     Company and its Subsidiaries of more than $500,000 or (b) which results, or
     creates a material risk of resulting, in a Material Adverse Change.
     Promptly upon acquiring knowledge thereof, the Company shall notify the
     Agent of the existence of any Default or Material Adverse Change,
     specifying the nature thereof and what action the Company or any of its
     Subsidiaries has taken, is taking or proposes to take with respect thereto.

          6.4.6. ERISA REPORTS. The Company shall furnish to the Agent (with
     copies for each Lender) as soon as available the following items with
     respect to any Plan:

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<PAGE>   65

          (1)  any request for a waiver of the funding standards or an extension
     of the amortization period,

          (2)  notice of any reportable event (as defined in section 4043 of
     ERISA), unless the notice requirement with respect thereto has been waived
     by regulation,

          (3)  any notice received by any ERISA Group Person that the PBGC has
     instituted or intends to institute proceedings to terminate any Plan, or
     that any Multiemployer Plan is insolvent or in reorganization,

          (4)  notice of the possibility of the termination of any Plan by its
     administrator pursuant to section 4041 of ERISA, and

          (5)  notice of the intention of any ERISA Group Person to withdraw, in
     whole or in part, from any Multiemployer Plan.

          6.4.7. OTHER INFORMATION. Subject to Section 12, from time to time at
     reasonable intervals upon request of the Agent, each of the Company and its
     Subsidiaries shall furnish to the Agent such other information regarding
     the business, assets, financial condition, income or prospects of the
     Company and its Subsidiaries as such officer may reasonably request,
     including copies of all tax returns, licenses, agreements, leases and
     instruments to which any of the Company or its Subsidiaries is party. Each
     Lender's authorized officers and representatives shall have the right
     during normal business hours upon reasonable notice and at reasonable
     intervals to examine the books and records of the Company and its
     Subsidiaries, to make copies and notes therefrom for the purpose of
     ascertaining compliance with or obtaining enforcement of this Agreement or
     any other Credit Document; PROVIDED, HOWEVER, that the Agent shall
     coordinate the exercise of such Lenders' rights to the extent practicable.

     6.5. CERTAIN FINANCIAL TESTS.

          6.5.1. CONSOLIDATED TOTAL DEBT TO CONSOLIDATED PRO FORMA EBITDA. On
     the last day of each fiscal quarter of the Company, Consolidated Total Debt
     shall not exceed the percentage set forth in the table below of
     Consolidated Pro Forma EBITDA for the period of four consecutive fiscal
     quarters ending on such date.

               Period Ending                    Percentage
               -------------                    ----------

             June 30, 1999 through                 300%
             September 30, 2001

             December 31, 2001                     275%
             and thereafter

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<PAGE>   66

          6.5.2. CONSOLIDATED PRO FORMA EBITDA MINUS CAPITAL EXPENDITURES TO
     CONSOLIDATED PRO FORMA INTEREST EXPENSE. For each period of four
     consecutive fiscal quarters of the Company (measured as of the last day of
     each fiscal quarter of the Company), the ratio of (a) the remainder of
     Consolidated Pro Forma EBITDA MINUS Capital Expenditures to (b)
     Consolidated Pro Forma Interest Expense shall equal or exceed 3.00 to 1.00.

          6.5.3. QUICK RATIO. The ratio of the sum of cash, Cash Equivalents and
     accounts receivable carried on the balance sheet of the Company and its
     Subsidiaries determined in accordance with GAAP on a Consolidated basis to
     Consolidated Current Liabilities (excluding any portion of the Loan) shall
     equal or exceed 1.10 to 1.00 at all times.

          6.5.4. CONSOLIDATED ADJUSTED NET WORTH. Consolidated Adjusted Net
     Worth shall at all times equal or exceed the sum of (a) 90% of Consolidated
     Net Worth as of June 30, 1999, PLUS (b) 75% of Consolidated Adjusted
     Positive Consolidated Net Income since June 30, 1999, PLUS (c) 90% of the
     amount by which Consolidated shareholders' equity of the Company and its
     Subsidiaries has been increased after June 30, 1999 by the proceeds of the
     issuance of capital stock or options, warrants or other rights to acquire
     such capital stock or from capital contributions.

     6.6. INDEBTEDNESS. Neither the Company nor any of its Subsidiaries shall
create, incur, assume or otherwise become or remain liable with respect to any
Indebtedness (or become contractually committed to do so), except the following:

          6.6.1. Indebtedness in respect of the Credit Obligations.

          6.6.2. Guarantees permitted by Section 6.7.

          6.6.3. Current liabilities, other than Financing Debt, incurred in the
     ordinary course of business.

          6.6.4. To the extent that payment thereof shall not at the time be
     required by Section 6.1, Indebtedness in respect of taxes, assessments,
     governmental charges and claims for labor, materials and supplies.

          6.6.5. Indebtedness secured by Liens of carriers, warehouses,
     mechanics, landlords and other Persons permitted by Sections 6.8.5 and
     6.8.6.

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<PAGE>   67

          6.6.6. Indebtedness in respect of judgments or awards (a) which have
     been in force for less than the applicable appeal period or (b) in respect
     of which the Company or any Subsidiary shall at the time in good faith be
     prosecuting an appeal or proceedings for review and, in the case of each of
     clauses (a) and (b), the Company or such Subsidiary shall have taken
     appropriate reserves therefor in accordance with GAAP and execution of such
     judgment or award shall not be levied.

          6.6.7. To the extent permitted by Section 6.8.7, Indebtedness in
     respect of Capitalized Lease Obligations or secured by purchase money
     security interests; PROVIDED, HOWEVER, that the aggregate principal amount
     of all Indebtedness permitted by this Section 6.6.7 at any one time
     outstanding shall not exceed $5,000,000.

          6.6.8. Indebtedness in respect of deferred taxes arising in the
     ordinary course of business.

          6.6.9. Indebtedness in respect of inter-company loans and advances
     among the Company and its Subsidiaries which are not prohibited by Section
     6.9.

          6.6.10. Unfunded pension liabilities and obligations with respect to
     Plans so long as the Company and all other ERISA Group Persons are in
     compliance with Section 6.16.

          6.6.11. Indebtedness outstanding on the date hereof and described in
     Exhibit 7.3 and (except with respect to the Prior Credit Agreement, which
     shall be terminated on the Initial Closing Date) all renewals, refinancings
     and extensions thereof not in excess of the amount thereof outstanding
     immediately prior to such renewal or extension (without reducing
     Indebtedness permitted under the other provisions of this Section 6.6).

          6.6.12. Unsecured Indebtedness in respect of obligations incurred
     pursuant to an acquisition permitted under Section 6.9, the amount of which
     is deferred purchase price or based on post-acquisition performance (when
     achieved) of the business or assets acquired (or Subsidiary acquiring such
     business or assets) in connection with such acquisition, in an amount not
     to exceed $1,000,000 at any one time outstanding.

          6.6.13. Indebtedness of Foreign Subsidiaries owing to local lenders in
     the jurisdiction of operations of such Foreign Subsidiaries in an aggregate
     principal amount not exceeding $500,000 at any one time outstanding in an
     equivalent amount of United States Funds.

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<PAGE>   68

     6.7. GUARANTEES; LETTERS OF CREDIT. Neither the Company nor any of its
Subsidiaries shall become or remain liable with respect to any Guarantee,
including reimbursement obligations, whether contingent or matured, under
letters of credit or other financial guarantees by third parties (or become
contractually committed do to so), except the following:

          6.7.1. Letters of Credit and Guarantees of the Credit Obligations.

          6.7.2. Guarantees by the Company or its Subsidiaries of Indebtedness
     and other obligations incurred by the Company or its Subsidiaries and
     permitted by Section 6.6.

     6.8. LIENS. Neither the Company nor any of its Subsidiaries shall create,
incur or enter into, or suffer to be created or incurred or to exist, any Lien
(or become contractually committed to do so), except the following:

          6.8.1. Liens on the Credit Security that secure the Credit
     Obligations.

          6.8.2. Liens to secure taxes, assessments and other governmental
     charges, to the extent that payment thereof shall not at the time be
     required by Section 6.1.

          6.8.3. Deposits or pledges made (a) in connection with, or to secure
     payment of, workers' compensation, unemployment insurance, old age pensions
     or other social security, (b) in connection with casualty insurance
     maintained in accordance with Section 6.3, (c) to secure the performance of
     bids, tenders, contracts (other than contracts relating to Financing Debt)
     or leases, (d) to secure statutory obligations or surety or appeal bonds,
     (e) to secure indemnity, performance or other similar bonds in the ordinary
     course of business or (f) in connection with contested amounts to the
     extent that payment thereof shall not at that time be required by Section
     6.1.

          6.8.4. Liens in respect of judgments or awards, to the extent that
     such judgments or awards are permitted by Section 6.6.6 but only to the
     extent that such Liens are junior to the Liens on the Credit Security
     granted to secure the Credit Obligations.

          6.8.5. Liens of carriers, warehouses, mechanics and similar Liens, in
     each case (a) in existence less than 90 days from the date of creation
     thereof or (b) being contested in good faith by the Company or any
     Subsidiary in appropriate proceedings (so long as the Company or such
     Subsidiary shall, in accordance with GAAP, have set aside on its books
     adequate reserves with respect thereto).

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<PAGE>   69

          6.8.6. Encumbrances in the nature of (a) zoning restrictions, (b)
     easements, (c) restrictions of record on the use of real property, (d)
     landlords' and lessors' Liens on rented premises and (e) restrictions on
     transfers or assignment of leases, which in each case do not materially
     detract from the value of the encumbered property or impair the use thereof
     in the business of the Company or any Subsidiary.

          6.8.7. Liens constituting (a) purchase money security interests
     (including mortgages, conditional sales, Capitalized Leases and any other
     title retention or deferred purchase devices), interests in leases or
     tangible personal property (other than inventory) existing or created on
     the date on which such property is acquired or within 60 days thereafter,
     and (b) the renewal, extension or refunding of any security interest
     referred to in the foregoing clause (a) in an amount not to exceed the
     amount thereof remaining unpaid immediately prior to such renewal,
     extension or refunding; PROVIDED, HOWEVER, that (i) each such security
     interest shall attach solely to the particular item of property so
     acquired, and the principal amount of Indebtedness (including Indebtedness
     in respect of Capitalized Lease Obligations) secured thereby shall not
     exceed the cost (including all such Indebtedness secured thereby, whether
     or not assumed) of such item of property; and (ii) the aggregate principal
     amount of all Indebtedness secured by Liens permitted by this Section 6.8.7
     shall not exceed the amount permitted by Section 6.6.7.

          6.8.8. Restrictions under federal and state securities laws on the
     transfer of securities.

          6.8.9. The sale of doubtful accounts receivable for collection in the
     ordinary course of business.

          6.8.10. Liens as in effect on the date hereof described in Exhibit 7.3
     (and renewals and replacements thereof) and securing Indebtedness permitted
     by Section 6.6.11 (without reducing Liens permitted under the other
     provisions of this Section 6.8).

          6.8.11. Liens arising from Uniform Commercial Code financing
     statements and similar documents filed on a precautionary basis in respect
     of operating leases intended by the parties to be true leases.

          6.8.12. Liens on the assets of Foreign Subsidiaries to secure
     Indebtedness permitted by Section 6.6.13.

     6.9. INVESTMENTS AND ACQUISITIONS. Neither the Company nor any of its
Subsidiaries shall have outstanding, acquire or hold any Investment (including
any Investment consisting of

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<PAGE>   70

the acquisition of any business) (or become contractually committed to do so),
except the following:

          6.9.1. Investments of the Company and its Subsidiaries in (a) Wholly
     Owned Subsidiaries which are Guarantors as of the date hereof or (b)
     Persons that have become Wholly Owned Subsidiaries and Guarantors after the
     date hereof in accordance with Section 6.9.6; PROVIDED, HOWEVER, that (a)
     no such Investment shall involve the transfer by the Company of any
     material assets other than cash and (b) loans and advances from a Foreign
     Subsidiary to a Domestic Subsidiary must be subordinated to the Credit
     Obligations pursuant to an intercompany subordination agreement in
     substantially the form of Exhibit 6.9.2.

          6.9.2. Intercompany loans and advances from any Wholly Owned
     Subsidiary to the Company but in each case only to the extent reasonably
     necessary for Consolidated tax planning and working capital management;
     PROVIDED, HOWEVER, that loans and advances from a Foreign Subsidiary to the
     Company or a Domestic Subsidiary must be subordinated to the Credit
     Obligations pursuant to an intercompany subordination agreement in
     substantially the form of Exhibit 6.9.2.

          6.9.3. Investments in Cash Equivalents. 1.1.1.

          6.9.4. Guarantees permitted by Section 6.7.

          6.9.5. So long as immediately before and after giving effect thereto
     no Default exists, Investments of the Company and its Subsidiaries in
     Foreign Subsidiaries that have been previously acquired or created by the
     Company and its Subsidiaries; PROVIDED, HOWEVER, that (a) such Investments
     shall not involve the transfer of substantial assets from the Company and
     its Domestic Subsidiaries to its Foreign Subsidiaries, other than cash and
     surplus equipment, and (b) Investments of the Company and its Domestic
     Subsidiaries in Foreign Subsidiaries made pursuant to this Section shall
     not exceed $2,000,000 at any one time outstanding MINUS the value of assets
     transferred to Foreign Subsidiaries pursuant to Section 6.11.6.

          6.9.6. The Company and its Subsidiaries may make acquisitions of
     businesses in the same or a substantially similar line of business so long
     as:

          (a)  The Company provides written computations and projections
               satisfactory to the Agent demonstrating pro forma compliance with
               Section 6.5 and the absence of any Default, both immediately
               before and after giving effect to such acquisition.

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<PAGE>   71

          (b)  The aggregate purchase price (including cash, assumed debt,
               earnout payments, seller debt, stock issuances and noncompetition
               payments) for such acquisition (including any related
               acquisitions) is less than $50,000,000.

          (c)  The Company has demonstrated to the satisfaction of the Agent
               that the business to be acquired has a positive adjusted
               Consolidated Pro Forma EBITDA on a trailing 12 month basis for
               the 12 months most recently ended prior to the proposed
               acquisition (with adjustments to Consolidated Pro Forma EBITDA
               being normal and customary for transactions of this type and
               approved by the Agent).

          (d)  The Company has provided the Agent at least 15 Banking Days prior
               written notice of such acquisition and copies of all letters of
               intent and agreements relating thereto.

          (e)  The Company or one of its Wholly Owned Subsidiaries is the
               surviving entity of such acquisition or, in the event of a stock
               acquisition, the Company or one of its Wholly Owned Subsidiaries
               will own at least 80% of the capital stock, as well as at least
               80% of the capital stock entitled to vote generally for the
               election of directors, of the acquired entity.

          (f)  The acquired business, if an acquired or newly created domestic
               corporation, will become a Guarantor and pledge its assets to
               secure the credit facility. The Company and the other Guarantors
               will pledge the stock (up to 66% of voting stock of a foreign
               corporation) of the acquired or newly created entity.

          (g)  The Lenders will have received a customary legal opinion from
               special counsel to the Company with respect to the new Guarantor.

          6.9.7. Investments outstanding on the date hereof and described in
     Exhibit 7.3 (without reducing Investments permitted under the other
     provisions of this Section 6.9).

          6.9.8. So long as immediately before and after giving effect thereto
     no Default exists, Investments in portfolio companies in an aggregate
     amount (calculated at original cost, net of any Distributions received in
     respect of such Investments) not to exceed $4,000,000 at any one time
     outstanding; PROVIDED, HOWEVER, that (a) no single Investment in any such
     portfolio company shall exceed $500,000 at any one time outstanding without
     the approval of the Required Lenders, which approval shall not be
     unreasonably withheld, and (b) as of the date of such Investment, the
     Reference

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<PAGE>   72

     Leverage Ratio shall not exceed 250% if such Investment is made on or
     before December 31, 2001 or 225% if such Investment is made after December
     31, 2001, unless the Company shall obtain the approval of the Required
     Lenders to make such Investment.

     6.10. DISTRIBUTIONS. Neither the Company nor any of its Subsidiaries shall
make any Distribution (or become contractually committed to do so), except the
following:

          6.10.1. So long as immediately before and after giving effect thereto
     no Default exists, Subsidiaries of the Company may make Distributions to
     the Company or any Wholly Owned Subsidiary of the Company and the Company
     and its Subsidiaries may make Investments permitted by Section 6.9.

          6.10.2. The Company may make Distributions of PIK Interest on the
     Debentures in accordance with their terms and, so long as immediately
     before and after giving effect thereto no Default exists, the Company may
     make cash interest payments on the Debentures equal to the lesser of (a) an
     amount equal to the accrued, scheduled, mandatory cash payments of interest
     on the Debentures in accordance with their terms, including subordination
     terms and (b) an aggregate amount in any year equal to 10% of the
     outstanding principal amount of the Debentures at the time of payment.

          6.10.3. So long as immediately before and after giving effect thereto
     no Default exists, the Company may repurchase Company stock, options to
     acquire such stock and Debentures in an aggregate amount not exceeding
     $200,000 in any year in cash, as well as any non-cash repurchases of the
     Debentures consummated by offsetting corresponding amounts owing to the
     Company by such employees, and any repurchases made from the cash proceeds
     of exercises under the Company's stock option plans and employee stock
     purchase plans.

     6.11. ASSET DISPOSITIONS AND MERGERS. Neither the Company nor any of its
Subsidiaries shall merge or enter into a consolidation or sell, lease, exchange,
sell and lease back, sublease or otherwise dispose of any of its assets (or
become contractually committed to do so), except the following:

          6.11.1. The Company and any of its Subsidiaries may sell or otherwise
     dispose of (a) inventory and Cash Equivalents in the ordinary course of
     business, (b) assets (i) that will be replaced in the ordinary course of
     business within 12 months by other assets of equal or greater value or (ii)
     that are no longer used or useful in the business of the Company or such
     Subsidiary, PROVIDED, HOWEVER that the aggregate fair market value (book
     value, if greater) of all assets sold under this clause (b) in any fiscal
     year shall not be material, (c) doubtful accounts receivable for collection
     purposes in the ordinary course of business and (d) Immaterial
     Subsidiaries.

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<PAGE>   73

          6.11.2. Any Wholly Owned Subsidiary of the Company may merge,
     consolidate or be liquidated into the Company or any other Wholly Owned
     Subsidiary of the Company so long as after giving effect to any such merger
     to which the Company is a party the Company shall be the surviving or
     resulting Person.

          6.11.3. Licensing or leasing of assets for fair value in the ordinary
     course of business.

          6.11.4. Nextera Business Performance Solutions Group, Inc. may
     liquidate or otherwise dispose of all its interest in Cranberry Hill
     Capital.

          6.11.5. Mergers or consolidations in connection with acquisitions
     permitted by Section 6.9.

          6.11.6. The sale, transfer or other disposition of assets from the
     Company to any Guarantor or from a Subsidiary to the Company or a
     Guarantor; PROVIDED, HOWEVER, that all such sales, transfers or other
     dispositions of assets of the Company and its Domestic Subsidiaries to
     Foreign Subsidiaries shall not exceed $2,000,000 in the aggregate MINUS the
     outstanding amount of Investments in Foreign Subsidiaries made under
     Section 6.9.5.

          6.11.7. So long as immediately before and after giving effect thereto
     no Default exists, dispositions of assets not to exceed $2,500,000
     (measured at net book value, except for assets constituting
     available-for-sale securities, which shall be measured at the lower of
     original cost or market value) for any fiscal year.

          6.11.8. Transactions constituting the offset of Indebtedness permitted
     by Section 6.10.3.

     6.12. ISSUANCE OF STOCK BY SUBSIDIARIES; SUBSIDIARY DISTRIBUTIONS.

          6.12.1. ISSUANCE OF STOCK BY SUBSIDIARIES. No Subsidiary shall issue
     or sell any shares of its capital stock or other evidence of beneficial
     ownership to any Person other than (a) the Company or any Wholly Owned
     Subsidiary of the Company, which shares shall have been pledged to the
     Agent as part of the Credit Security to the extent required by the
     Guarantee and Security Agreement, (b) directors of Subsidiaries as
     qualifying shares to the extent required by Legal Requirements and, in the
     case of Foreign Subsidiaries, shares required by Legal Requirements to be
     held by foreign nationals and (c) pro rata Distributions to shareholders of
     non-Wholly Owned Subsidiaries.

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<PAGE>   74

          6.12.2. NO RESTRICTIONS ON SUBSIDIARY DISTRIBUTIONS. Except for this
     Agreement and the Credit Documents, neither the Company nor any Subsidiary
     shall enter into or be bound by any agreement (including covenants
     requiring the maintenance of specified amounts of net worth or working
     capital) restricting the right of any Subsidiary to make Distributions or
     extensions of credit to the Company (directly or indirectly through another
     Subsidiary).

     6.13. VOLUNTARY PREPAYMENTS OF OTHER INDEBTEDNESS. Neither the Company nor
any of its Subsidiaries shall make any voluntary prepayment of principal of or
interest on any Financing Debt (other than the Credit Obligations) or make any
voluntary redemptions or repurchases of Financing Debt (other than the Credit
Obligations), in each case except in order to facilitate a refinancing of
Indebtedness permitted by Sections 6.6 or 6.10.3.

     6.14. DERIVATIVE CONTRACTS. Neither the Company nor any of its Subsidiaries
shall enter into any Hedge Agreement or other financial or commodity derivative
contracts except to provide hedge protection for an underlying economic
transaction in the ordinary course of business.

     6.15. NEGATIVE PLEDGE CLAUSES. Neither the Company nor any of its
Subsidiaries shall enter into any agreement, instrument, deed or lease which
prohibits or limits the ability of the Company or any of its Subsidiaries to
create, incur, assume or suffer to exist any Lien upon any of their respective
properties, assets or revenues, whether now owned or hereafter acquired, or
which requires the grant of any collateral for such obligation if collateral is
granted for another obligation, except the following:

          6.15.1. This Agreement and the other Credit Documents.

          6.15.2. Covenants in documents creating, or that could create, Liens
     permitted by Section 6.8 prohibiting further or any, as the case may be,
     Liens on the assets encumbered thereby.

     6.16. ERISA, ETC. Each of the Company and its Subsidiaries shall comply,
and shall cause all ERISA Group Persons to comply, in all material respects,
with the provisions of ERISA and the Code applicable to each Plan. Each of the
Company and its Subsidiaries shall meet, and shall cause all ERISA Group Persons
to meet, all minimum funding requirements applicable to them with respect to any
Plan pursuant to section 302 of ERISA or section 412 of the Code, without giving
effect to any waivers of such requirements or extensions of the related
amortization periods which may be granted. At no time shall the Accumulated
Benefit Obligations under any Plan that is not a Multiemployer Plan exceed the
fair market value of the assets of such Plan allocable to such benefits by more
than $500,000. The Company and its Subsidiaries shall not withdraw, and shall
cause all other ERISA Group Persons not to withdraw, in whole or in part, from
any Multiemployer Plan so as to give rise to withdrawal

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<PAGE>   75

liability exceeding $500,000 in the aggregate. At no time shall the actuarial
present value of unfunded liabilities for post-employment health care benefits
(other than COBRA continuation coverage benefits), whether or not provided under
a Plan, calculated in a manner consistent with Statement No. 106 of the
Financial Accounting Standards Board, exceed $500,000.

     6.17. TRANSACTIONS WITH AFFILIATES. Neither the Company nor any of its
Subsidiaries shall effect any transaction with any of their respective
Affiliates (except for the Company and its Subsidiaries) on a basis less
favorable to the Company and its Subsidiaries than would be the case if such
transaction had been effected with a non-Affiliate.

     6.18. RESTRICTED OPERATIONS OF CRANBERRY HILL CAPITAL. Cranberry Hill
Capital will conduct no operations other than owning Investments in former
customers of Symmetrix, Inc. (now known as Nextera Business Performance
Solutions, Inc.) for the benefit of present and former employees of Symmetrix,
Inc. and activities incidental thereto. Cranberry Hill Capital will own no
material assets other than such Investments and cash expected to be spent or
distributed within 90 days.

7.   REPRESENTATIONS AND WARRANTIES. In order to induce the Lenders to extend
credit to the Company hereunder, each of the Company and the other Guarantors
jointly and severally represents and warrants as follows:

     7.1. ORGANIZATION AND BUSINESS.

          7.1.1. THE COMPANY. The Company is a duly organized and validly
     existing corporation, in good standing under the laws of Delaware, with all
     power and authority, corporate or otherwise, necessary to (a) enter into
     and perform this Agreement and each other Credit Document to which it is
     party, (b) incur the Credit Obligations, (c) grant the Agent for the
     benefit of the Lenders the security interests in the Credit Security owned
     by it to secure the Credit Obligations and (d) own its properties and carry
     on the business now conducted or proposed to be conducted by it. Certified
     copies of the Charter and By-laws of the Company have been previously
     delivered to the Agent and are correct and complete. Exhibit 7.1, as from
     time to time hereafter supplemented in accordance with Sections 6.4.1 and
     6.4.2, sets forth, as of the later of the date hereof or the end of the
     most recent fiscal quarter for which financial statements are required to
     be furnished in accordance with such Sections, (i) the jurisdiction of
     incorporation of the Company, (ii) the address of the Company's principal
     executive office and chief place of business, (iii) each name, including
     any trade name, under which the Company conducts its business and (iv) the
     jurisdictions in which the Company owns material real or tangible personal
     property.

          7.1.2. SUBSIDIARIES. Each Subsidiary of the Company is duly organized,
     validly existing and in good standing under the laws of the jurisdiction in
     which it is

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<PAGE>   76

     organized, with all power and authority, corporate or otherwise, necessary
     to (a) enter into and perform this Agreement and each other Credit Document
     to which it is party, (b) guarantee the Credit Obligations, (c) grant the
     Agent for the benefit of the Lenders the security interest in the Credit
     Security owned by such Subsidiary to secure the Credit Obligations and (d)
     own its properties and carry on the business now conducted or proposed to
     be conducted by it. Certified copies of the Charter and By-laws of each
     Subsidiary of the Company have been previously delivered to the Agent and
     are correct and complete. Exhibit 7.1, as from time to time hereafter
     supplemented in accordance with Sections 6.4.1 and 6.4.2, sets forth, as of
     the later of the date hereof or the end of the most recent fiscal quarter
     for which financial statements are required to be furnished in accordance
     with such Sections, (i) the name and jurisdiction of organization of each
     Subsidiary of the Company, (ii) the address of the chief executive office
     and principal place of business of each such Subsidiary, (iii) each name
     under which each such Subsidiary conducts its business, (iv) each
     jurisdiction in which each such Subsidiary owns material real or tangible
     personal property, and (v) the number of authorized and issued shares and
     ownership of each such Subsidiary.

          7.1.3. QUALIFICATION. Each of the Company and its Subsidiaries is duly
     and legally qualified to do business as a foreign corporation or other
     entity and is in good standing in each state or jurisdiction in which such
     qualification is required and is duly authorized, qualified and licensed
     under all laws, regulations, ordinances or orders of public authorities, or
     otherwise, to carry on its business in the places and in the manner in
     which it is conducted, except for failures to be so qualified, authorized
     or licensed which would not in the aggregate result, or create a material
     risk of resulting, in any Material Adverse Change.

          7.1.4. CAPITALIZATION. Except as set forth in Exhibit 7.1, as from
     time to time hereafter supplemented in accordance with Sections 6.4.1 and
     6.4.2, no options, warrants, conversion rights, preemptive rights or other
     statutory or contractual rights to purchase shares of capital stock or
     other securities of any Subsidiary now exist, nor has any Subsidiary
     authorized any such right, nor is any Subsidiary obligated in any other
     manner to issue shares of its capital stock or other securities.

     7.2. FINANCIAL STATEMENTS AND OTHER INFORMATION; MATERIAL AGREEMENTS.

          7.2.1. FINANCIAL STATEMENTS AND OTHER INFORMATION. The Company has
     previously furnished to the Agent copies of the following:

          (1)  The audited Consolidated and unaudited Consolidating balance
     sheets of the Company and its Subsidiaries as at December 31 in each of
     1996, 1997 and 1998 and the audited Consolidated and unaudited
     Consolidating statements of income and the audited Consolidated statements
     of changes in shareholders' equity and of cash flows of

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<PAGE>   77

     the Company and its Subsidiaries for the fiscal years (or the fiscal
     quarter, in the case of June 30, 1999) of the Company then ended.

          (2)  The unaudited Consolidated balance sheet of the Company and its
     Subsidiaries as at June 30, 1999 and the unaudited Consolidated statements
     of income and of cash flows of the Company and its Subsidiaries for the
     fiscal quarter and the portion of the fiscal year then ended.

          (3)  The three-year financial and operational projections for the
     Company and its Subsidiaries dated September 1999.

          (4)  Calculations with respect to the Computation Covenants as of the
     end of the most recent fiscal quarter preceding the date hereof on a pro
     forma basis giving effect to the incurrence of the Credit Obligations.

          (5)  The registration statement on Form S-1 of the Company, together
     with all amendments thereto, filed by the Company with the Securities and
     Exchange Commission in connection with its initial public offering of Class
     A Common Stock in May 1999 (the "PROSPECTUS").

          The audited Consolidated financial statements (including the notes
     thereto) referred to in clause (a) above were prepared in accordance with
     GAAP and fairly present in all material respects the financial position of
     the Company and its Subsidiaries on a Consolidated basis at the respective
     dates thereof and the results of their operations for the periods covered
     thereby. The unaudited Consolidating financial statements referred to in
     clause (a) above and the unaudited Consolidated financial statements
     referred to in clause (b) above were prepared in accordance with GAAP and
     fairly present in all material respects the financial position of the
     Company and its Subsidiaries at the respective dates thereof and the
     results of their operations for the periods covered thereby, subject to
     normal year-end audit adjustments and the addition of footnotes in the case
     of interim financial statements. Neither the Company nor any of its
     Subsidiaries has any known contingent liability material to the Company and
     its Subsidiaries on a Consolidated basis which is not reflected in the
     balance sheets referred to in clauses (a) or (b) above (or delivered
     pursuant to Sections 6.4.1 or 6.4.2) or in the notes thereto.

          In the Company's judgment, the financial and operational projections
     referred to in clause (c) above constitute a reasonable basis as of the
     Initial Closing Date for the assessment of the future performance of the
     Company and its Subsidiaries during the periods indicated therein, it being
     understood that any projected financial information represents an estimate,
     based on various assumptions, of future results of operations which may or
     may not in fact occur.

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<PAGE>   78

          The Prospectus contained all information required to be contained
     therein and otherwise complied in all material respects with the Securities
     Act.

          7.2.2. MATERIAL AGREEMENTS. The Company has previously furnished to
     the Agent correct and complete copies, including all exhibits, schedules
     and amendments thereto, of the agreements and instruments, each as in
     effect on the date hereof, listed in Exhibit 7.2.2, which constitute all
     agreements and instruments material to the Company and its Subsidiaries on
     a Consolidated basis (the "MATERIAL AGREEMENTS").

     7.3. AGREEMENTS RELATING TO FINANCING DEBT, INVESTMENTS, ETC. Exhibit 7.3,
as from time to time hereafter supplemented in accordance with Sections 6.4.1
and 6.4.2, sets forth:

          7.3.1. The amounts (as of the dates indicated in Exhibit 7.3, as so
     supplemented) of all Financing Debt of the Company and its Subsidiaries and
     all agreements which relate to such Financing Debt.

          7.3.2. All Liens and Guarantees with respect to such Financing Debt.

          7.3.3. Certain material Investments outstanding as of the date hereof
     and all agreements which directly or indirectly require the Company or any
     Subsidiary to make any Investment.

          7.3.4. All trademarks, tradenames, service marks, service names and
     patents owned by the Company and its Subsidiaries that are registered with
     the federal Patent and Trademark Office (or with respect to which
     applications for such registration have been filed).

          7.3.5. All copyrights owned by the Company and its Subsidiaries that
     are registered with the federal Copyright Office.

          7.3.6. All bank and deposit accounts owned by the Company and its
     Subsidiaries.

The Company has furnished the Agent correct and complete copies of any
agreements described above in this Section 7.3 requested by the Agent.

     7.4. CHANGES IN CONDITION. Between June 30, 1999 and the date hereof, no
Material Adverse Change has occurred and between June 30, 1999 and the date
hereof, neither the Company nor any Subsidiary of the Company has entered into
any material transaction outside

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<PAGE>   79

the ordinary course of business except for the transactions contemplated by this
Agreement and the Material Agreements and as otherwise disclosed in writing to
the Agent.

     7.5. TITLE TO ASSETS. The Company and its Subsidiaries have good and
marketable title to all material assets necessary for or used in the operations
of their business as now conducted by them and reflected in the most recent
balance sheet referred to in Section 7.2.1 (or the balance sheet most recently
furnished to the Agent pursuant to Sections 6.4.1 or 6.4.2), and to all assets
acquired subsequent to the date of such balance sheet, subject to no Liens
except for Liens permitted by Section 6.8 and except for assets disposed of as
permitted by Section 6.11.

     7.6. OPERATIONS IN CONFORMITY WITH LAW, ETC. The operations of the Company
and its Subsidiaries as now conducted or proposed to be conducted are not in
violation of, nor is the Company or its Subsidiaries in default under, any Legal
Requirement presently in effect, except for such violations and defaults as do
not and will not, in the aggregate, result, or create a material risk of
resulting, in any Material Adverse Change. The Company has received no notice of
any such violation or default and has no knowledge of any basis on which the
operations of the Company or its Subsidiaries, as now conducted and as currently
proposed to be conducted after the date hereof, would be held so as to violate
or to give rise to any such violation or default.

     7.7. LITIGATION. Except as set forth on Exhibit 7.7, no litigation, at law
or in equity, or any proceeding before any court, board or other governmental or
administrative agency or any arbitrator is pending or, to the knowledge of the
Company or any Guarantor, threatened which involves any material risk of any
final judgment, order or liability which, after giving effect to any applicable
insurance, has resulted, or creates a material risk of resulting, in any
Material Adverse Change or which seeks to enjoin the consummation, or which
questions the validity, of any of the transactions contemplated by this
Agreement or any other Credit Document. Except as set forth on Exhibit 7.7, no
judgment, decree or order of any court, board or other governmental or
administrative agency or any arbitrator has been issued against or binds the
Company or any of its Subsidiaries which has resulted, or creates a material
risk of resulting, in any Material Adverse Change.

     7.8. AUTHORIZATION AND ENFORCEABILITY. Each of the Company and each other
Obligor has taken all corporate action required to execute, deliver and perform
this Agreement and each other Credit Document to which it is party. No consent
of stockholders of the Company is necessary in order to authorize the execution,
delivery or performance of this Agreement or any other Credit Document to which
the Company is party. Each of this Agreement and each other Credit Document
constitutes the legal, valid and binding obligation of each Obligor party
thereto and is enforceable against such Obligor in accordance with its terms
except as such enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting the enforcement
of creditors' rights generally.

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     7.9. NO LEGAL OBSTACLE TO AGREEMENTS. Neither the execution and delivery of
this Agreement or any other Credit Document, nor the making of any borrowings
hereunder, nor the guaranteeing of the Credit Obligations, nor the securing of
the Credit Obligations with the Credit Security, nor the consummation of any
transaction referred to in or contemplated by this Agreement or any other Credit
Document, nor the fulfillment of the terms hereof or thereof or of any other
agreement, instrument, deed or lease contemplated by this Agreement or any other
Credit Document has constituted or resulted in or will constitute or result in:

          (1)  any breach or termination of the provisions of any agreement,
     instrument, deed or lease which is material to the Company and its
     Subsidiaries, taken as a whole, or which would have a material adverse
     effect on the rights of the Lenders under the Credit Documents, to which
     the Company, any of its Subsidiaries or any other Obligor is a party or by
     which it is bound, or of the Charter or By-laws of the Company, any of its
     Subsidiaries or any other Obligor;

          (2)  the violation of any law, statute, judgment, decree or
     governmental order, rule or regulation applicable to the Company, any of
     its Subsidiaries or any other Obligor;

          (3)  the creation under any agreement, instrument, deed or lease of
     any Lien (other than Liens on the Credit Security which secure the Credit
     Obligations) upon any of the assets of the Company, any of its Subsidiaries
     or any other Obligor; or

          (4)  any redemption, retirement or other repurchase obligation of the
     Company, any of its Subsidiaries or any other Obligor under any Charter,
     By-law, agreement, instrument, deed or lease.

No approval, authorization or other action by, or declaration to or filing with,
any governmental or administrative authority or any other Person is required to
be obtained or made by the Company, any of its Subsidiaries or any other Obligor
in connection with the execution, delivery and performance of this Agreement or
any other Credit Document, the transactions contemplated hereby or thereby, the
making of any borrowing hereunder, the guaranteeing of the Credit Obligations or
the securing of the Credit Obligations with the Credit Security (other than
filings necessary to perfect the Agent's security interest in the Credit
Security).

     7.10. DEFAULTS. Neither the Company nor any of its Subsidiaries is in
default under any provision of its Charter or By-laws or of this Agreement or
any other Credit Document. Neither the Company nor any of its Subsidiaries is in
default under any provision of any agreement, instrument, deed or lease to which
it is party or by which it or its property is bound so as to result, or create a
material risk of resulting, in any Material Adverse Change.

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<PAGE>   81

     7.11. LICENSES, ETC. The Company and its Subsidiaries have all patents,
patent applications, patent licenses, patent rights, trademarks, trademark
rights, trade names, trade name rights, copyrights, licenses, franchises,
permits, authorizations and other rights as are reasonably necessary for the
conduct of the business of the Company and its Subsidiaries as now conducted by
them. All of the foregoing are in full force and effect in all material
respects, and each of the Company and its Subsidiaries is in substantial
compliance with the foregoing without any known conflict with the valid rights
of others which has resulted, or creates a material risk of resulting, in any
Material Adverse Change. No event has occurred which permits, or after notice or
lapse of time or both would permit, the revocation or termination of any such
license, franchise or other right or which affects the rights of any of the
Company and its Subsidiaries thereunder so as to result, or to create a material
risk of resulting, in any Material Adverse Change.

     7.12. TAX RETURNS. Except as set forth on Exhibit 7.12, each of the Company
and its Subsidiaries has filed all material tax and information returns which
are required to be filed by it and has paid, or made adequate provision for the
payment of, all taxes which have or may become due pursuant to such returns or
to any assessment received by it, other than taxes and assessments being
contested by the Company and its Subsidiaries in good faith by appropriate
proceedings and for which adequate reserves have been taken in accordance with
GAAP. Except as set forth on Exhibit 7.12, neither the Company nor any of its
Subsidiaries knows of any material additional assessments or any basis therefor.
The Company reasonably believes that the charges, accruals and reserves on the
books of the Company and its Subsidiaries in respect of taxes or other
governmental charges are adequate.

     7.13. CERTAIN BUSINESS REPRESENTATIONS.

          7.13.1. LABOR RELATIONS. No dispute or controversy between the Company
     or any of its Subsidiaries and any of their respective employees has
     resulted, or is reasonably likely to result, in any Material Adverse
     Change, and neither the Company nor any of its Subsidiaries anticipates
     that its relationships with its unions or employees will result, or are
     reasonably likely to result, in any Material Adverse Change. The Company
     and each of its Subsidiaries is in compliance in all material respects with
     all federal and state laws with respect to (a) non-discrimination in
     employment with which the failure to comply, in the aggregate, has
     resulted, or creates a material risk of resulting, in a Material Adverse
     Change and (b) the payment of wages.

          7.13.2. ANTITRUST. Each of the Company and its Subsidiaries is in
     compliance in all material respects with all federal and state antitrust
     laws relating to its business and the geographic concentration of its
     business.

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<PAGE>   82

          7.13.3. YEAR 2000 ISSUES. Based on a review of the operations of the
     Company and its Subsidiaries as they relate to the processing, storage and
     retrieval of data, the Company does not believe that a Material Adverse
     Change is reasonably likely to occur as a result of computer software and
     hardware that will not function with respect to periods commencing January
     1, 2000 at least as effectively as with respect to periods ending on or
     prior to December 31, 1999.

          7.13.4. FUTURE EXPENDITURES. Neither the Company nor any of its
     Subsidiaries anticipate that the future expenditures, if any, by the
     Company and its Subsidiaries needed to meet the provisions of any federal,
     state or foreign governmental statutes, orders, rules or regulations will
     be so burdensome as to result, or create a material risk of resulting, in
     any Material Adverse Change.

     7.14. PENSION PLANS. Each Plan (other than a Multiemployer Plan) and, to
the knowledge of the Company and its Subsidiaries, each Multiemployer Plan is in
material compliance with the applicable provisions of ERISA and the Code. Each
Multiemployer Plan and each Plan that constitutes a "defined benefit plan" (as
defined in ERISA) are set forth in Exhibit 7.14 (as from time to time hereafter
supplemented in accordance with Sections 6.4.1 and 6.4.2). Each ERISA Group
Person has met all of the material funding standards applicable to all Plans
that are not Multiemployer Plans, and no condition exists which would permit the
institution of proceedings to terminate any Plan that is not a Multiemployer
Plan under section 4042 of ERISA. To the knowledge of the Company and each
Subsidiary, no Plan that is a Multiemployer Plan is currently insolvent or in
reorganization or has been terminated within the meaning of ERISA.

     7.15. ENVIRONMENTAL REGULATIONS.

          7.15.1. ENVIRONMENTAL COMPLIANCE. Each of the Company and its
     Subsidiaries is in compliance in all material respects with the Clean Air
     Act, the Federal Water Pollution Control Act, the Marine Protection
     Research and Sanctuaries Act, RCRA, CERCLA and any other Environmental Law
     in effect in any jurisdiction in which any properties of the Company or any
     of its Subsidiaries are located or where any of them conducts its business,
     and with all applicable published rules and regulations (and applicable
     standards and requirements) of the federal Environmental Protection Agency
     and of any similar agencies in states or foreign countries in which the
     Company or its Subsidiaries conducts its business other than those which in
     the aggregate have not resulted, and do not create a material risk of
     resulting, in a Material Adverse Change.

          7.15.2. ENVIRONMENTAL CONDITION OF PROPERTIES. To the knowledge of the
     Company, none of the properties owned or leased by the Company or any of
     its Subsidiaries has been used as a treatment, storage or disposal site for
     Hazardous

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<PAGE>   83

     Material, other than as disclosed in Exhibit 7.15 (as from time to time
     hereafter supplemented in accordance with Sections 6.4.1 and 6.4.2). To the
     knowledge of the Company, no Hazardous Material is present in any real
     property currently or formerly owned or operated by the Company or any of
     its Subsidiaries except that which has not resulted, and does not create a
     material risk of resulting, in a Material Adverse Change.

     7.16. GOVERNMENT REGULATION; MARGIN STOCK.

          7.16.1. GOVERNMENT REGULATION. Neither the Company nor any of its
     Subsidiaries, nor any Person controlling the Company or any of its
     Subsidiaries or under common control with the Company or any of its
     Subsidiaries, is subject to regulation under the Public Utility Holding
     Company Act of 1935, the Federal Power Act, the Investment Company Act, the
     Interstate Commerce Act or any statute or regulation which regulates the
     incurring by the Company or any of its Subsidiaries of Financing Debt as
     contemplated by this Agreement and the other Credit Documents.

          7.16.2. MARGIN STOCK. Except as set forth on Exhibit 7.16.2, neither
     the Company nor any of its Subsidiaries owns any Margin Stock; PROVIDED,
     HOWEVER, that the value of all such Margin Stock owned by the Company and
     its Subsidiaries does not exceed 25% of the book value of the total assets
     of the Company and its Subsidiaries.

     7.17. DISCLOSURE. Neither this Agreement nor any other Credit Document nor
any financial statement, report, notice, mortgage, assignment or certificate,
taken as a whole, furnished or to be furnished to the Lenders or the Agent by or
on behalf of the Company or any of its Subsidiaries in connection with the
transactions contemplated hereby or by such Credit Document contains any untrue
statement of material fact or omits to state a material fact necessary in order
to make the statements contained herein or therein not misleading in light of
the circumstances under which they were made.

8.   DEFAULTS.

     8.1. EVENTS OF DEFAULT. The following events are referred to as "EVENTS OF
DEFAULT":

          8.1.1. PAYMENT. The Company shall fail to make any payment in respect
     of: (a) interest or any fee on or in respect of any of the Credit
     Obligations owed by it as the same shall become due and payable, and such
     failure shall continue for a period of three Banking Days, or (b) any
     Credit Obligation with respect to payments made by any Letter of Credit
     Issuer under any Letter of Credit or any draft drawn thereunder within
     three Banking Days after demand therefor by such Letter of Credit Issuer
     (whether by loan, cash or otherwise) or (c) principal of any of the Credit
     Obligations owed by it as the same shall become due, whether at maturity or
     by acceleration or otherwise.

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<PAGE>   84

          8.1.2. SPECIFIED COVENANTS. The Company or any of its Subsidiaries
     shall fail to perform or observe any of the provisions of Section 6.4.5 or
     Sections 6.5 through 6.17.

          8.1.3. OTHER COVENANTS. The Company, any of its Subsidiaries or any
     other Obligor shall fail to perform or observe any other covenant,
     agreement or provision to be performed or observed by it under this
     Agreement or any other Credit Document, and such failure shall not be
     rectified or cured to the written satisfaction of the Required Lenders
     within 30 days after the earlier of (a) notice thereof by the Agent to the
     Company or (b) a Financial Officer shall have actual knowledge thereof.

          8.1.4. REPRESENTATIONS AND WARRANTIES. Any representation or warranty
     of or with respect to the Company, any of its Subsidiaries or any other
     Obligor made to the Lenders or the Agent in, pursuant to or in connection
     with this Agreement or any other Credit Document, or in any financial
     statement, report, notice, mortgage, assignment or certificate delivered to
     the Agent or any of the Lenders by the Company, any of its Subsidiaries or
     any other Obligor in connection herewith or therewith, shall be false in
     any material respect on the date as of which it was made.

          8.1.5. MATERIAL FINANCING DEBT CROSS DEFAULT, ETC.

          (1)  The Company or any of its Subsidiaries shall fail to make any
     payment when due (after giving effect to any applicable grace periods) in
     respect of any Material Financing Debt;

          (2)  the Company or any of its Subsidiaries shall fail to perform or
     observe the terms of any agreement or instrument relating to any Material
     Financing Debt, and such failure shall continue, without having been duly
     cured, waived or consented to, beyond the period of grace, if any,
     specified in such agreement or instrument, and such failure shall permit
     the acceleration of such Material Financing Debt;

          (3)  all or any part of any Material Financing Debt of the Company or
     any of its Subsidiaries shall be accelerated or shall become due or payable
     prior to its stated maturity (except with respect to voluntary prepayments
     thereof) for any reason whatsoever;

          (4)  any Lien on any property of the Company or any of its
     Subsidiaries securing any Material Financing Debt shall be enforced by
     foreclosure or similar action; or

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<PAGE>   85

          (5)  any holder of any Material Financing Debt shall exercise any
     right of rescission with respect to the issuance thereof or put, mandatory
     prepayment or repurchase rights against any Obligor with respect to such
     Material Financing Debt (other than any such rights that may be satisfied
     with "payment in kind" notes or other similar securities).

          8.1.6. OWNERSHIP; LIQUIDATION; ETC. Except as permitted by Section
     6.11:

          (1)  the Company shall cease to own, directly or indirectly, all the
     capital stock of its Subsidiaries, except (i) to the extent permitted by
     Section 6.12.1, (ii) shares of Sibson Canada owned by third parties as of
     the date hereof and (iii) as permitted pursuant to Section 6.9; or

          (2)  Knowledge Enterprises and its Affiliates shall cease to own
     voting stock necessary to elect a majority of the members of the Company's
     board of directors, other than as a result of stock issuances by the
     Company; or

          (3)  a majority of the board of directors of the Company shall be
     neither (i) nominated or approved in advance by the board of directors of
     the Company nor (ii) appointed or approved in advance by directors so
     nominated or approved; or

          (4)  any Person, together with "affiliates" and "associates" of such
     Person within the meaning of Rule 12b-2 of the Exchange Act, or any "group"
     including such Person under sections 13(d) and 14(d) of the Exchange Act,
     other than the Persons described in paragraph (b) above, shall acquire
     after the date hereof (i) beneficial ownership within the meaning of Rule
     13d-3 of the Exchange Act of 33% or more of either the voting stock or
     total equity capital of the Company or (ii) direct or indirect control of
     the Company through a shareholder, voting or similar agreement or
     arrangement; or

          (5)  except for Immaterial Subsidiaries, the Company or any of its
     Subsidiaries or any other Obligor shall initiate any action to dissolve,
     liquidate or otherwise terminate its existence.

          8.1.7. ENFORCEABILITY, ETC. Any Credit Document shall cease for any
     reason (other than the scheduled termination thereof in accordance with its
     terms) to be enforceable in accordance with its terms or in full force and
     effect; or any party to any Credit Document shall so assert in a judicial
     or similar proceeding; or the security interests created by this Agreement
     or any other Credit Documents shall cease to be enforceable and of the same
     effect and priority purported to be created hereby, except to the extent
     that any such loss of perfection or priority results (a) from the failure
     of

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<PAGE>   86

     the Agent to maintain possession of certificates representing securities
     pledged under the Credit Documents or (b) from any gross negligence or
     willful misconduct of the Agent.

          8.1.8. JUDGMENTS. A final judgment (a) which, with other outstanding
     final judgments against the Company and its Subsidiaries, exceeds an
     aggregate of $500,000 in excess of applicable insurance coverage shall be
     rendered against the Company or any of its Subsidiaries, or (b) which
     grants injunctive relief that results, or creates a material risk of
     resulting, in a Material Adverse Change and in either case if (i) within 45
     days after entry thereof, such judgment shall not have been discharged or
     execution thereof stayed pending appeal or (ii) within 45 days after the
     expiration of any such stay, such judgment shall not have been discharged.

          8.1.9. ERISA. Any "reportable event" (as defined in section 4043 of
     ERISA) shall have occurred that reasonably could be expected to result in
     termination of a Plan or the appointment by the appropriate United States
     District Court of a trustee to administer any Plan or the imposition of a
     Lien in favor of a Plan; or any ERISA Group Person shall fail to pay when
     due amounts aggregating in excess of $500,000 which it shall have become
     liable to pay to the PBGC or to a Plan under Title IV of ERISA; or notice
     of intent to terminate a Plan shall be filed under Title IV of ERISA by any
     ERISA Group Person or administrator; or the PBGC shall institute
     proceedings under Title IV of ERISA to terminate or to cause a trustee to
     be appointed to administer any Plan or a proceeding shall be instituted by
     a fiduciary of any Plan against any ERISA Group Person to enforce section
     515 or 4219(c)(5) of ERISA and such proceeding shall not have been
     dismissed within 45 days thereafter; or a condition shall exist by reason
     of which the PBGC would be entitled to obtain a decree adjudicating that
     any Plan must be terminated.

          8.1.10. BANKRUPTCY, ETC. The Company, any of its Subsidiaries or any
     other Obligor shall:

          (1)  commence a voluntary case under the Bankruptcy Code or authorize,
     by appropriate proceedings of its board of directors or other governing
     body, the commencement of such a voluntary case;

          (2)  (i) have filed against it a petition commencing an involuntary
     case under the Bankruptcy Code that shall not have been dismissed within 60
     days after the date on which such petition is filed, or (ii) file an answer
     or other pleading within such 60-day period admitting or failing to deny
     the material allegations of such a petition or seeking, consenting to or
     acquiescing in the relief therein provided, or (iii) have entered against
     it an order for relief in any involuntary case commenced under the
     Bankruptcy Code;

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<PAGE>   87

          (3)  seek relief as a debtor under any applicable law, other than the
     Bankruptcy Code, of any jurisdiction relating to the liquidation or
     reorganization of debtors or to the modification or alteration of the
     rights of creditors, or consent to or acquiesce in such relief;

          (4)  have entered against it an order by a court of competent
     jurisdiction (i) finding it to be bankrupt or insolvent, (ii) ordering or
     approving its liquidation or reorganization as a debtor or any modification
     or alteration of the rights of its creditors or (iii) assuming custody of,
     or appointing a receiver or other custodian for, all or a substantial
     portion of its property; or

          (5)  make an assignment for the benefit of, or enter into a
     composition with, its creditors, or appoint, or consent to the appointment
     of, or suffer to exist a receiver or other custodian for, all or a
     substantial portion of its property.

     8.2. CERTAIN ACTIONS FOLLOWING AN EVENT OF DEFAULT. If any one or more
Events of Default shall occur and be continuing, then in each and every such
case:

          8.2.1. TERMINATE OBLIGATION TO EXTEND CREDIT. Upon written request of
     the Required Lenders, the Agent shall terminate the obligations of the
     Lenders to make any further extensions of credit under the Credit Documents
     by furnishing notice of such termination to the Company; PROVIDED, HOWEVER,
     that if a Bankruptcy Default shall have occurred, the obligations of the
     Lenders to make any further extensions of credit under the Credit Documents
     shall automatically terminate.

          8.2.2. SPECIFIC PERFORMANCE; EXERCISE OF RIGHTS. Upon written request
     of the Required Lenders, the Agent shall proceed to protect and enforce the
     Lenders' rights by suit in equity, action at law and/or other appropriate
     proceeding, either for specific performance of any covenant or condition
     contained in this Agreement or any other Credit Document (other than Hedge
     Agreements) or in any instrument or assignment delivered to the Lenders
     pursuant to this Agreement or any other Credit Document (other than Hedge
     Agreements), or in aid of the exercise of any power granted in this
     Agreement or any other Credit Document (other than Hedge Agreements) or any
     such instrument or assignment.

          8.2.3. ACCELERATION. Upon written request of the Required Lenders, the
     Agent shall by notice in writing to the Company (a) declare all or any part
     of the unpaid balance of the Credit Obligations (other than amounts under
     Hedge Agreements) then outstanding to be immediately due and payable, and
     (b) require the Company immediately to deposit with the Agent in cash an
     amount equal to the then Letter of Credit Exposure (which cash shall be
     held and applied as provided in Section 4.4), and thereupon such unpaid
     balance or part thereof and such amount equal to the Letter of

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<PAGE>   88

     Credit Exposure shall become so due and payable without presentation,
     protest or further demand or notice of any kind, all of which are hereby
     expressly waived; PROVIDED, HOWEVER, that if a Bankruptcy Default shall
     have occurred, the unpaid balance of the Credit Obligations (other than
     amounts under Hedge Agreements) shall automatically become immediately due
     and payable.

          8.2.4. ENFORCEMENT OF PAYMENT; CREDIT SECURITY; SETOFF. Upon written
     request of the Required Lenders, the Agent shall proceed to enforce payment
     of the Credit Obligations in such manner as it may elect, to cancel, or
     instruct other Letter of Credit Issuers to cancel, any outstanding Letters
     of Credit which permit the cancellation thereof and to realize upon any and
     all rights in the Credit Security. The Lenders may offset and apply toward
     the payment of the Credit Obligations (and/or toward the curing of any
     Event of Default) any Indebtedness from the Lenders to the respective
     Obligors, including any Indebtedness represented by deposits in any account
     maintained with the Lenders, regardless of the adequacy of any security for
     the Credit Obligations. The Lenders shall have no duty to determine the
     adequacy of any such security in connection with any such offset.

          8.2.5. CUMULATIVE REMEDIES. To the extent not prohibited by applicable
     law which cannot be waived, all of the Lenders' rights hereunder and under
     each other Credit Document shall be cumulative.

     8.3. ANNULMENT OF DEFAULTS. Once an Event of Default has occurred, such
Event of Default shall be deemed to exist and be continuing for all purposes of
the Credit Documents (other than Hedge Agreements) until the Required Lenders or
the Agent (with the consent of the Required Lenders) shall have waived such
Event of Default in writing, stated in writing that the same has been cured to
such Lenders' reasonable satisfaction or entered into an amendment to this
Agreement which by its express terms cures such Event of Default, at which time
such Event of Default shall no longer be deemed to exist or to have continued.
No such action by the Lenders or the Agent shall extend to or affect any
subsequent Event of Default or impair any rights of the Lenders upon the
occurrence thereof. The making of any extension of credit during the existence
of any Default or Event of Default shall not constitute a waiver thereof.

     8.4. WAIVERS. To the extent that such waiver is not prohibited by the
provisions of applicable law that cannot be waived, each of the Company and the
other Obligors waives:

          (1)  all presentments, demands for performance, notices of
     nonperformance (except to the extent required by this Agreement or any
     other Credit Document), protests, notices of protest and notices of
     dishonor;

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<PAGE>   89

          (2)  any requirement of diligence or promptness on the part of the
     Agent or any Lender in the enforcement of its rights under this Agreement
     or any other Credit Document;

          (3)  any and all notices of every kind and description which may be
     required to be given by any statute or rule of law; and

          (4)  any defense (other than indefeasible payment in full) which it
     may now or hereafter have with respect to its liability under this
     Agreement or any other Credit Document or with respect to the Credit
     Obligations.

9.   EXPENSES; INDEMNITY.

     9.1. EXPENSES. Whether or not the transactions contemplated hereby shall be
consummated, the Company will pay:

          (1)  all reasonable expenses of the Agent and the Syndication Agent
     (including the out-of-pocket expenses related to forming the group of
     Lenders and reasonable fees and disbursements of the counsel to the Agent
     and the Syndication Agent) in connection with the negotiation, preparation
     and duplication of this Agreement and each other Credit Document,
     examinations by, and reports of, the Agent's commercial financial
     examiners, fixed asset appraisers and environmental consultants, the
     transactions contemplated hereby and thereby and amendments, waivers,
     consents and other operations hereunder and thereunder;

          (2)  all recording and filing fees and transfer and documentary stamp
     and similar taxes at any time payable in respect of this Agreement, any
     other Credit Document, any Credit Security or the incurrence of the Credit
     Obligations; and

          (3)  all other reasonable expenses incurred by the Agent, the Lenders
     or the holder of any Credit Obligation in connection with the enforcement
     of any rights hereunder or under any other Credit Document or any work-out
     negotiations relating to the Credit Obligations, including costs of
     collection and reasonable attorneys' fees (including a reasonable allowance
     for the hourly cost of attorneys employed by the Lenders on a salaried
     basis) and expenses.

     9.2. GENERAL INDEMNITY. The Company shall indemnify the Lenders and the
Agent and hold them harmless from any liability, loss or damage resulting from
the violation by the Company of Section 2.4. In addition, the Company shall
indemnify each Lender, the Agent, the Syndication Agent, each of the Lenders' or
the Agent's or the Syndication Agent's directors, officers, employees, agents,
attorneys, accountants, consultants and each Person, if any, who controls any
Lender or the Agent (each Lender, the Agent and each of such

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<PAGE>   90

directors, officers, employees, agents, attorneys, accountants, consultants and
control Persons is referred to as an "INDEMNIFIED PARTY") and hold each of them
harmless from and against any and all claims, damages, liabilities and
reasonable expenses (including reasonable fees and disbursements of counsel with
whom any Indemnified Party may consult in connection therewith and all
reasonable expenses of litigation or preparation therefor) which any Indemnified
Party may incur or which may be asserted against any Indemnified Party relating
to, arising out of or by reason of this Agreement or any other Credit Document
in connection with (a) the Indemnified Party's compliance with or contest of any
subpoena or other process issued against it in any proceeding involving the
Company or any of its Subsidiaries or their Affiliates, (b) any litigation or
investigation involving the Company, any of its Subsidiaries or their
Affiliates, or any officer, director or employee thereof, (c) the existence or
exercise of any security rights with respect to the Credit Security in
accordance with the Credit Documents, or (d) this Agreement, any other Credit
Document or any transaction contemplated hereby or thereby; PROVIDED, HOWEVER,
that the foregoing indemnity shall not apply (i) to litigation commenced by the
Company against the Lenders or the Agent or the Syndication Agent which seeks
enforcement of any of the rights of the Company hereunder or under any other
Credit Document and is determined adversely to the Lenders or the Agent or the
Syndication Agent in a final nonappealable judgment or (ii) to the extent such
claims, damages, liabilities and expenses result from the Indemnified Party's
own gross negligence or willful misconduct. THE COMPANY EXPRESSLY ACKNOWLEDGES
THAT IT MAY BE REQUIRED TO INDEMNIFY PERSONS AGAINST THEIR OWN NEGLIGENCE.

     9.3. INDEMNITY WITH RESPECT TO LETTERS OF CREDIT. The Company shall
indemnify each Letter of Credit Issuer and its correspondents and hold each of
them harmless from and against any and all claims, losses, liabilities, damages
and reasonable expenses (including reasonable attorneys' fees) arising from or
in connection with any Letter of Credit, including any such claim, loss,
liability, damage or expense arising out of any transfer, sale, delivery,
surrender or endorsement of any invoice, bill of lading, warehouse receipt or
other document at any time held by the Agent, such Letter of Credit Issuer or
held for their respective accounts by any of their correspondents, in connection
with any Letter of Credit, except to the extent such claims, losses,
liabilities, damages and expenses result from gross negligence or willful
misconduct on the part of the Agent or any other Letter of Credit Issuer.

10.  OPERATIONS; AGENT.

     10.1. INTERESTS IN CREDITS. The Percentage Interest of each Lender in the
respective portions of the Loan and Letter of Credit Exposure, and the related
Commitments, shall be computed based on the maximum principal amount for each
Lender as set forth in the Register, as from time to time in effect. The current
Percentage Interests are set forth in Exhibit 10.1, which may be updated by the
Agent from time to time to conform to the Register.

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     10.2. AGENT'S AUTHORITY TO ACT, ETC. Each of the Lenders appoints and
authorizes BankBoston to act for the Lenders as the Lenders' Agent in connection
with the transactions contemplated by this Agreement and the other Credit
Documents (other than Hedge Agreements) on the terms set forth herein. All
action in connection with the enforcement of, or the exercise of any remedies
(other than the Lenders' rights of set-off as provided in Section 8.2.4 or in
any Credit Document) in respect of the Credit Obligations and Credit Documents
shall be taken by the Agent.

     10.3. COMPANY TO PAY AGENT, ETC. The Company and each Guarantor shall be
fully protected in making all payments in respect of the Credit Obligations
(other than payments under Hedge Agreements) to the Agent, in relying upon
consents, modifications and amendments executed by the Agent purportedly on the
Lenders' behalf, and in dealing with the Agent as herein provided. The Agent may
charge the accounts of the Company, on the dates when the amounts thereof become
due and payable, with the amounts of the principal of and interest on the Loan,
any amounts paid by the Letter of Credit Issuers to third parties under Letters
of Credit or drafts presented thereunder, commitment fees, Letter of Credit fees
and all other fees and amounts owing under any Credit Document (other than Hedge
Agreements).

     10.4. LENDER OPERATIONS FOR ADVANCES, LETTERS OF CREDIT, ETC.

          10.4.1. ADVANCES. Except as the Lenders otherwise agree for loans made
     in accordance with the Cash Management Agreement, on each Closing Date,
     each Lender shall advance to the Agent in immediately available funds such
     Lender's Percentage Interest in the portion of the Loan advanced on such
     Closing Date prior to 12:00 noon (Boston time). If such funds are not
     received at such time, but all applicable conditions set forth in Section 5
     have been satisfied, each Lender authorizes and requests the Agent to
     advance for the Lender's account, pursuant to the terms hereof, the
     Lender's respective Percentage Interest in such portion of the Loan and
     agrees to reimburse the Agent in immediately available funds for the amount
     thereof prior to 2:00 p.m. (Boston time) on the day any portion of the Loan
     is advanced hereunder; PROVIDED, HOWEVER, that the Agent is not authorized
     to make any such advance for the account of any Lender who has previously
     notified the Agent in writing that such Lender will not be performing its
     obligations to make further advances hereunder; and PROVIDED, FURTHER, that
     the Agent shall be under no obligation to make any such advance. With
     respect to loans advanced and repayments received in accordance with the
     Cash Management Agreement, the Agent shall make such advances and hold such
     repayments for its own account on an interim basis and shall settle such
     transactions on a net basis with the other Lenders on each Settlement Date
     as provided in Section 2.6.

          10.4.2. LETTERS OF CREDIT. Each of the Lenders authorizes and requests
     each Letter of Credit Issuer to issue the Letters of Credit provided for in
     Section 2.3

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     and to grant each Lender a participation in each of such Letters of Credit
     in an amount equal to its Percentage Interest in the amount of each such
     Letter of Credit. Promptly upon the request of the Letter of Credit Issuer,
     each Lender shall reimburse the Letter of Credit Issuer in immediately
     available funds for such Lender's Percentage Interest in the amount of all
     obligations to third parties incurred by the Letter of Credit Issuer in
     respect of each Letter of Credit and each draft accepted under a Letter of
     Credit to the extent not reimbursed by the Company by 2:00 p.m. (Boston
     time) on the Banking Day when due. The Letter of Credit Issuer will notify
     each Lender of the issuance of any Letter of Credit, the amount and date of
     payment of any draft drawn or accepted under a Letter of Credit and whether
     in connection with the payment of any such draft the amount thereof was
     added to the Revolving Loan or was reimbursed by the Company.

          10.4.3. AGENT TO ALLOCATE PAYMENTS, ETC. All payments of principal and
     interest in respect of the extensions of credit made pursuant to this
     Agreement, reimbursement of amounts paid by any Letter of Credit Issuer to
     third parties under Letters of Credit or drafts presented thereunder,
     commitment fees, Letter of Credit fees and other fees under this Agreement
     shall, as a matter of convenience, be made by the Company and the
     Guarantors to the Agent in immediately available funds by noon (Boston
     time) on any Banking Day. Except as the Lenders otherwise agree for loans
     made in accordance with the Cash Management Agreement, the share of each
     Lender shall be credited to such Lender by the Agent in immediately
     available funds by 2:00 p.m. (Boston time) on such Banking Day in such
     manner that the principal amount of the Credit Obligations to be paid shall
     be paid proportionately in accordance with the Lenders' respective
     Percentage Interests in such Credit Obligations, except as otherwise
     provided in this Agreement. Under no circumstances shall any Lender be
     required to produce or present its Notes as evidence of its interests in
     the Credit Obligations in any action or proceeding relating to the Credit
     Obligations.

          10.4.4. NONPERFORMING LENDERS. In the event that any Lender fails to
     reimburse the Agent pursuant to Sections 10.4.1 or 10.4.2 (or in such
     manner as the Lenders otherwise agree for loans made in accordance with the
     Cash Management Agreement) for the Percentage Interest of such lender (a
     "NONPERFORMING LENDER") in any credit advanced by the Agent pursuant
     hereto, overdue amounts (the "DELINQUENT PAYMENT") due from the
     Nonperforming Lender to the Agent shall bear interest, payable by the
     Nonperforming Lender on demand, at a per annum rate equal to (a) the
     Federal Funds Rate for the first three days overdue and (b) the sum of 2%
     PLUS the Federal Funds Rate for any longer period. Such interest shall be
     payable to the Agent for its own account for the period commencing on the
     date of the Delinquent Payment and ending on the date the Nonperforming
     Lender reimburses the Agent on account of the Delinquent Payment (to the
     extent not paid by any Obligor as provided below) and the accrued interest
     thereon (the "DELINQUENCY PERIOD"), whether pursuant to the assignments
     referred to below or otherwise. Upon notice by the Agent, the Company

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     will pay to the Agent the principal (but not the interest) portion of the
     Delinquent Payment; PROVIDED that such Delinquent Payment has been
     outstanding for no fewer than three days. During the Delinquency Period, in
     order to make reimbursements for the Delinquent Payment and accrued
     interest thereon, the Nonperforming Lender shall be deemed to have assigned
     to the Agent all interest, commitment fees and other payments made by the
     Company under Section 3 that would have thereafter otherwise been payable
     under the Credit Documents to the Nonperforming Lender. During any period
     in which any Nonperforming Lender is not performing its obligations to
     extend credit under Section 2, the Nonperforming Lender shall be deemed to
     have assigned to each Lender that is not a Nonperforming Lender (a
     "PERFORMING LENDER") all principal and other payments made by the Company
     under Section 4 that would have thereafter otherwise been payable under the
     Credit Documents to the Nonperforming Lender. The Agent shall credit a
     portion of such payments to each Performing Lender in an amount equal to
     the Percentage Interest of such Performing Lender in an amount equal to the
     Percentage Interest of such Performing Lender divided by one MINUS the
     Percentage Interest of the Nonperforming Lender until the respective
     portions of the Loan owed to all the Lenders are the same as the Percentage
     Interests of the Lenders immediately prior to the failure of the
     Nonperforming Lender to perform its obligations under Section 2. The
     foregoing provisions shall be in addition to any other remedies the Agent,
     the Performing Lenders or the Company may have under law or equity against
     the Nonperforming Lender as a result of the Delinquent Payment as a result
     of its failure to perform its obligations under Section 2.

     10.5. SHARING OF PAYMENTS, ETC. Each Lender agrees that (a) if by
exercising any right of set-off or counterclaim or otherwise, it shall receive
payment of (i) a proportion of the aggregate amount due with respect to its
Percentage Interest in the Loan and Letter of Credit Exposure which is greater
than (ii) the proportion received by any other Lender in respect of the
aggregate amount due with respect to such other Lender's Percentage Interest in
the Loan and Letter of Credit Exposure and (b) if such inequality shall continue
for more than 10 days, the Lender receiving such proportionately greater payment
shall purchase participations in the Percentage Interests in the Loan and Letter
of Credit Exposure held by the other Lenders, and such other adjustments shall
be made from time to time (including rescission of such purchases of
participations in the event the unequal payment originally received is recovered
from such Lender through bankruptcy proceedings or otherwise), as may be
required so that all such payments of principal and interest with respect to the
Loan and Letter of Credit Exposure held by the Lenders shall be shared by the
Lenders pro rata in accordance with their respective Percentage Interests;
PROVIDED, HOWEVER, that this Section 10.5 shall not impair the right of any
Lender to exercise any right of set-off or counterclaim it may have and to apply
the amount subject to such exercise to the payment of Indebtedness of any
Obligor other than such Obligor's Indebtedness with respect to the Loan and
Letter of Credit Exposure. Each Lender that grants a participation in the Credit
Obligations to a Credit Participant shall require as a condition to the granting
of such participation that such Credit Participant agree to share

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<PAGE>   94

payments received in respect of the Credit Obligations as provided in this
Section 10.5. The provisions of this Section 10.5 are for the sole and exclusive
benefit of the Lenders and no failure of any Lender to comply with the terms
hereof shall be available to any Obligor as a defense to the payment of the
Credit Obligations.

     10.6. AGENT'S RESIGNATION. The Agent may resign at any time by giving at
least 60 days' prior written notice of its intention to do so to each of the
Lenders and the Company and upon the appointment by the Required Lenders of a
successor Agent reasonably satisfactory to the Company; PROVIDED, HOWEVER, that
Bank of America, N.A. shall have the right of first refusal with respect to such
appointment. If no successor Agent shall have been so appointed and shall have
accepted such appointment within 45 days after the retiring Agent's giving of
such notice of resignation, then the retiring Agent may appoint a successor
Agent which shall be a bank or a trust company organized under the laws of the
United States of America or any state thereof and having a combined capital,
surplus and undivided profit of at least $100,000,000 (so long as no Default
exists) with the consent of the Company, which shall not be unreasonably
withheld; PROVIDED, HOWEVER, that any successor Agent appointed under this
sentence may be removed upon the written request of the Required Lenders, which
request shall also appoint a successor Agent (so long as no Default exists)
reasonably satisfactory to the Company. Upon the appointment of a new Agent
hereunder, the term "Agent" shall for all purposes of this Agreement thereafter
mean such successor. After any retiring Agent's resignation hereunder as Agent,
or the removal hereunder of any successor Agent, the provisions of this
Agreement shall continue to inure to the benefit of such retiring or removed
Agent as to any actions taken or omitted to be taken by it while it was Agent
under this Agreement.

     10.7. CONCERNING THE AGENT.

          10.7.1. ACTION IN GOOD FAITH, ETC. The Agent and its officers,
     directors, employees and agents shall be under no liability to any of the
     Lenders or to any future holder of any interest in the Credit Obligations
     for any action or failure to act taken or suffered in good faith, and any
     action or failure to act in accordance with an opinion of its counsel shall
     conclusively be deemed to be in good faith. The Agent shall in all cases be
     entitled to rely, and shall be fully protected in relying, on instructions
     given to the Agent by the Required Lenders.

          10.7.2. NO IMPLIED DUTIES, ETC. The Agent shall have and may exercise
     such powers as are specifically delegated to the Agent under this Agreement
     or any other Credit Document together with all other powers incidental
     thereto. The Agent shall have no implied duties to any Person or any
     obligation to take any action under this Agreement or any other Credit
     Document except for action specifically provided for in this Agreement or
     any other Credit Document to be taken by the Agent.

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          10.7.3. VALIDITY, ETC. The Agent shall not be responsible to any
     Lender or any future holder of any interest in the Credit Obligations (a)
     for the legality, validity, enforceability or effectiveness of this
     Agreement or any other Credit Document, (b) for any recitals, reports,
     representations, warranties or statements contained in or made in
     connection with this Agreement or any other Credit Document, (c) for the
     existence or value of any assets included in any security for the Credit
     Obligations, (d) for the effectiveness of any Lien purported to be included
     in the Credit Security, (e) for the specification or failure to specify any
     particular assets to be included in the Credit Security, or (f) unless the
     Agent shall have failed to comply with Section 10.7.1, for the perfection
     of the security interests in the Credit Security.

          10.7.4. COMPLIANCE. The Agent shall not be obligated to ascertain or
     inquire as to the performance or observance of any of the terms of this
     Agreement or any other Credit Document; and in connection with any
     extension of credit under this Agreement or any other Credit Document, the
     Agent shall be fully protected in relying on a certificate of the Company
     as to the fulfillment by the Company of any conditions to such extension of
     credit.

          10.7.5. EMPLOYMENT OF AGENTS AND COUNSEL. The Agent may execute any of
     its duties as Agent under this Agreement or any other Credit Document by or
     through employees, agents and attorneys-in-fact and shall not be
     responsible to any of the Lenders, the Company or any other Obligor for the
     default or misconduct of any such agents or attorneys-in-fact selected by
     the Agent acting in good faith. The Agent shall be entitled to advice of
     counsel concerning all matters pertaining to the agency hereby created and
     its duties hereunder or under any other Credit Document.

          10.7.6. RELIANCE ON DOCUMENTS AND COUNSEL. The Agent shall be entitled
     to rely, and shall be fully protected in relying, upon any affidavit,
     certificate, cablegram, consent, instrument, letter, notice, order,
     document, statement, telecopy, telegram, telex or teletype message or
     writing reasonably believed in good faith by the Agent to be genuine and
     correct and to have been signed, sent or made by the Person in question,
     including any telephonic or oral statement made by such Person, and, with
     respect to legal matters, upon an opinion or the advice of counsel selected
     by the Agent.

          10.7.7. AGENT'S REIMBURSEMENT. Each of the Lenders severally agrees to
     reimburse the Agent, pro rata in accordance with such Lender's Percentage
     Interest, for any reasonable expenses not reimbursed by the Company or the
     Guarantors (without limiting the obligation of the Company or the
     Guarantors to make such reimbursement): (a) for which the Agent is entitled
     to reimbursement by the Company or the Guarantors under this Agreement or
     any other Credit Document, and (b) after the occurrence and during the
     continuance of a Default, for any other reasonable expenses incurred by the
     Agent on the Lenders' behalf in connection with the enforcement of the
     Lenders' rights

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<PAGE>   96

     under this Agreement or any other Credit Document; PROVIDED, HOWEVER, that
     the Agent shall not be reimbursed for any such expenses arising as a result
     of its gross negligence or willful misconduct.

     10.8. RIGHTS AS A LENDER. With respect to any credit extended by it
hereunder, BankBoston shall have the same rights, obligations and powers
hereunder as any other Lender and may exercise such rights and powers as though
it were not the Agent, and unless the context otherwise specifies, BankBoston
shall be treated in its individual capacity as though it were not the Agent
hereunder. Without limiting the generality of the foregoing, the Percentage
Interest of BankBoston shall be included in any computations of Percentage
Interests. BankBoston and its Affiliates may accept deposits from, lend money
to, act as trustee for and generally engage in any kind of banking or trust
business with the Company, any of its Subsidiaries or any Affiliate of any of
them and any Person who may do business with or own an equity interest in the
Company, any of its Subsidiaries or any Affiliate of any of them, all as if
BankBoston were not the Agent and without any duty to account therefor to the
other Lenders.

     10.9. INDEPENDENT CREDIT DECISION. Each of the Lenders acknowledges that it
has independently and without reliance upon the Agent, based on the financial
statements and other documents referred to in Section 7.2, on the other
representations and warranties contained herein and on such other information
with respect to the Company and its Subsidiaries as such Lender deemed
appropriate, made such Lender's own credit analysis and decision to enter into
this Agreement and to make the extensions of credit provided for hereunder. Each
Lender represents to the Agent that such Lender will continue to make its own
independent credit and other decisions in taking or not taking action under this
Agreement or any other Credit Document. Each Lender expressly acknowledges that
neither the Agent nor any of its officers, directors, employees, agents,
attorneys-in-fact or Affiliates has made any representations or warranties to
such Lender, and no act by the Agent taken under this Agreement or any other
Credit Document, including any review of the affairs of the Company and its
Subsidiaries, shall be deemed to constitute any representation or warranty by
the Agent. Except for notices, reports and other documents expressly required to
be furnished to each Lender by the Agent under this Agreement or any other
Credit Document, the Agent shall not have any duty or responsibility to provide
any Lender with any credit or other information concerning the business,
operations, property, condition, financial or otherwise, or creditworthiness of
the Company or any Subsidiary which may come into the possession of the Agent or
any of its officers, directors, employees, agents, attorneys-in-fact or
Affiliates.

     10.10. INDEMNIFICATION. The Lenders shall severally indemnify the Agent and
its officers, directors, employees, agents, attorneys, accountants, consultants
and controlling Persons (to the extent not reimbursed by the Obligors and
without limiting the obligation of any of the Obligors to do so), pro rata in
accordance with their respective Percentage Interests, from and against any and
all liabilities, obligations, losses, damages, penalties, actions,

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judgments, suits, costs, expenses or disbursements of any kind whatsoever which
may at any time be imposed on, incurred by or asserted against the Agent or such
Persons relating to or arising out of this Agreement, any other Credit Document,
the transactions contemplated hereby or thereby, or any action taken or omitted
by the Agent in connection with any of the foregoing; PROVIDED, HOWEVER, that
the foregoing shall not extend to actions or omissions which are taken by the
Agent with gross negligence or willful misconduct.

11.  SUCCESSORS AND ASSIGNS; LENDER ASSIGNMENTS AND PARTICIPATIONS. Any
reference in this Agreement or any other Credit Document to any of the parties
hereto shall be deemed to include the successors and assigns of such party, and
all covenants and agreements by or on behalf of the Company, the other Obligors,
the Agent or the Lenders that are contained in this Agreement or any other
Credit Document shall bind and inure to the benefit of their respective
successors and assigns; PROVIDED, HOWEVER, that (a) the Company and its
Subsidiaries may not assign their rights or obligations under this Agreement or
any other Credit Document except for mergers or liquidations permitted by
Section 6.11, and (b) the Lenders shall be not entitled to assign their
respective Percentage Interests in the credits extended hereunder or their
Commitments except as set forth below in this Section 11.

     11.1. ASSIGNMENTS BY LENDERS.

          11.1.1. ASSIGNEES AND ASSIGNMENT PROCEDURES. Each Lender may, in
     compliance with applicable laws in connection with such assignment, assign
     to one or more Eligible Assignees (each, an "ASSIGNEE") all or a portion of
     its interests, rights and obligations under this Agreement and the other
     Credit Documents, including all or a portion, which must be pro rata
     between the Revolving Loan, the Acquisition Loan and the Letter of Credit
     Exposure, of its Commitment, the portions of the Loan and Letter of Credit
     Exposure at the time owing to it and any Notes held by it, but excluding
     its rights and obligations as a Letter of Credit Issuer; PROVIDED, HOWEVER,
     that:

               (1)  the aggregate amount of the Commitment of the assigning
          Lender subject to each such assignment to any Assignee other than
          another Lender, a Related Fund or an Affiliate of a Lender (determined
          as of the date the Assignment and Acceptance with respect to such
          assignment is delivered to the Agent) shall be not less than
          $5,000,000 and in increments of $1,000,000 (or, if less, the entire
          remaining amount of the assigning Lender's Commitment); and

               (2)  the parties to each such assignment shall execute and
          deliver to the Agent an Assignment and Acceptance (the "ASSIGNMENT AND
          ACCEPTANCE") substantially in the form of Exhibit 11.1.1, together
          with the Note subject to such assignment and, except in the event of a
          transfer pursuant to Section 11.3, a processing and recordation fee of
          $2,500 payable to the Agent by the assigning

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          Lender (or as the assigning Lender and the Assignee may otherwise
          agree between themselves).

     Upon acceptance and recording pursuant to Section 11.1.4, from and after
     the effective date specified in each Assignment and Acceptance (which
     effective date shall be at least five Banking Days after the execution
     thereof unless waived by the Agent):

          (A)  the Assignee shall be a party hereto and, to the extent provided
               in such Assignment and Acceptance, have the rights and
               obligations of a Lender under this Agreement and

          (B)  the assigning Lender shall, to the extent provided in such
               assignment, be released from its obligations under this Agreement
               (and, in the case of an Assignment and Acceptance covering all or
               the remaining portion of an assigning Lender's rights and
               obligations under this Agreement, such Lender shall cease to be a
               party hereto but shall continue to be entitled to the benefits of
               Sections 3.2.4, 3.5 and 9, as well as to any fees accrued for its
               account hereunder and not yet paid).

          11.1.2. TERMS OF ASSIGNMENT AND ACCEPTANCE. By executing and
     delivering an Assignment and Acceptance, the assigning Lender and the
     Assignee shall be deemed to confirm to and agree with each other and the
     other parties hereto as follows:

          (1)  other than the representation and warranty that it is the legal
     and beneficial owner of the interest being assigned thereby free and clear
     of any adverse claim, such assigning Lender makes no representation or
     warranty and assumes no responsibility with respect to any statements,
     warranties or representations made in or in connection with this Agreement
     or the execution, legality, validity, enforceability, genuineness,
     sufficiency or value of this Agreement, any other Credit Document or any
     other instrument or document furnished pursuant hereto;

          (2)  such assigning Lender makes no representation or warranty and
     assumes no responsibility with respect to the financial condition of the
     Company and its Subsidiaries or the performance or observance by the
     Company or any of its Subsidiaries of any of its obligations under this
     Agreement, any other Credit Document or any other instrument or document
     furnished pursuant hereto;

          (3)  such Assignee confirms that it has received a copy of this
     Agreement, together with copies of the most recent financial statements
     delivered pursuant to Section 7.2 or Section 6.4 and such other documents
     and information as it has deemed

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     appropriate to make its own credit analysis and decision to enter into such
     Assignment and Acceptance;

          (4)  such Assignee will independently and without reliance upon the
     Agent, such assigning Lender or any other Lender, and based on such
     documents and information as it shall deem appropriate at the time,
     continue to make its own credit decisions in taking or not taking action
     under this Agreement;

          (5)  such Assignee appoints and authorizes the Agent to take such
     action as agent on its behalf and to exercise such powers under this
     Agreement as are delegated to the Agent by the terms hereof, together with
     such powers as are reasonably incidental thereto; and

          (6)  such Assignee agrees that it will perform in accordance with the
     terms of this Agreement all the obligations which are required to be
     performed by it as a Lender.

          11.1.3. REGISTER. The Agent shall maintain at the Boston Office (for
     this limited purpose, also as agent for the Company) a register (the
     "REGISTER") for the recordation of (a) the names and addresses of the
     Lenders and the Assignees which assume rights and obligations pursuant to
     an assignment under Section 11.1.1, (b) the Percentage Interest of each
     such Lender as set forth in Exhibit 10.1 and (c) the amount of the Loan and
     Letter of Credit Exposure owing to each Lender from time to time. The
     entries in the Register shall be conclusive, in the absence of manifest
     error, and the Company, the Agent and the Lenders may treat each Person
     whose name is registered therein for all purposes as a party to this
     Agreement. The Register shall be available for inspection by the Company or
     any Lender at any reasonable time and from time to time upon reasonable
     prior notice.

          11.1.4. ACCEPTANCE OF ASSIGNMENT AND ASSUMPTION. Upon its receipt of a
     completed Assignment and Acceptance executed by an assigning Lender and an
     Assignee (and any necessary consent of the Agent and the Company) together
     with the processing and recordation fee referred to in Section 11.1.1 and,
     to the extent necessary, the Note being assigned, the Agent shall (a)
     accept such Assignment and Acceptance, (b) record the information contained
     therein in the Register and (c) give prompt notice thereof to the Company.
     Within five Banking Days after receipt of notice, the Company, at its own
     expense, shall execute and deliver to the Agent (in exchange for the
     surrendered Note if such Note must be surrendered or reissued as a result
     of such assignment) a new Note to the order of such Assignee in a principal
     amount equal to the applicable Commitment and Loan assumed by it pursuant
     to such Assignment and Acceptance. If the assigning Lender has retained a
     Commitment and Loan, its Note shall be deemed to be then outstanding in a
     principal amount equal to the applicable Commitment and Loan retained by
     it.

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          11.1.5. FEDERAL RESERVE BANK. Notwithstanding the foregoing provisions
     of this Section 11 (without the consent of or notice to the Agent or the
     Company), any Lender may at any time pledge all or any portion of such
     Lender's rights under this Agreement and the other Credit Documents to a
     Federal Reserve Bank or, in the case of any Lender that is a fund, to the
     trustee of such fund to support the fund's obligations to such trustee;
     PROVIDED, HOWEVER, that no such pledge or assignment shall release such
     Lender from such Lender's obligations hereunder or under any other Credit
     Document.

          11.1.6. FURTHER ASSURANCES. The Company and its Subsidiaries shall
     sign such documents and take such other actions from time to time
     reasonably requested by an Assignee to enable it to share in the benefits
     of the rights created by the Credit Documents.

     11.2. CREDIT PARTICIPANTS. Each Lender may, without the consent of the
Company or the Agent, in compliance with applicable laws in connection with such
participation, sell to one or more commercial banks, other financial
institutions or funds in the business of making or purchasing loans similar to
the Credit Obligations (each a "CREDIT PARTICIPANT") participations in all or a
portion of its interests, rights and obligations under this Agreement and the
other Credit Documents (including all or a portion of its Commitment, the Loan
and Letter of Credit Exposure owing to it and the Notes held by it); PROVIDED,
HOWEVER, that:

          (1) such Lender's obligations under this Agreement shall remain
     unchanged;

          (2) such Lender shall remain solely responsible to the other parties
     hereto for the performance of such obligations;

          (3) the Credit Participant shall be entitled to the benefit of the
     cost protection provisions contained in Sections 3.2.4, 3.5 and 9, but
     shall not be entitled to receive any greater payment thereunder than the
     selling Lender would have been entitled to receive with respect to the
     interest so sold if such interest had not been sold; and

          (4) the Company, the Agent and the other Lenders shall continue to
     deal solely and directly with such Lender in connection with such Lender's
     rights and obligations under this Agreement and, under any agreements
     between such Lender and such Credit Participant, such Lender shall retain
     the sole right as one of the Lenders to vote (and to determine how to vote)
     with respect to the enforcement of the obligations of the Obligors relating
     to the Loan and Letter of Credit Exposure and the approval of any
     amendment, modification or waiver of any provision of this Agreement (other
     than amendments, modifications, consents or waivers described in clause (b)
     of the proviso to Section 15.1, with respect to which the Credit
     Participant may determine how to vote).

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Each Obligor agrees, to the fullest extent permitted by applicable law, that any
Credit Participant and any Lender purchasing a participation from another Lender
pursuant to Section 10.5 may exercise all rights of payment (including the right
of set-off), with respect to its participation as fully as if such Credit
Participant or such Lender were the direct creditor of the Obligors and a Lender
hereunder in the amount of such participation; PROVIDED, HOWEVER, that such
Credit Participant may only exercise its rights of payment if the Company has
been notified that such Person is a Credit Participant.

     11.3. REPLACEMENT OF LENDER. In the event that any Lender or, to the extent
applicable, any Credit Participant (the "AFFECTED LENDER"):

          (1) fails to perform its obligations to fund any portion of the Loan
     or to issue any Letter of Credit on any Closing Date when required to do so
     by the terms of the Credit Documents, or fails to provide its portion of
     any LIBOR Pricing Option pursuant to Section 3.2.1 or on account of a Legal
     Requirement as contemplated by Section 3.2.5;

          (2) demands payment under the provisions of Section 3.5 in an amount
     materially in excess of the amounts with respect thereto demanded by the
     other Lenders; or

          (3) refuses to consent to a proposed amendment, modification, waiver
     or other action requiring consent of the holders of 100% of the Percentage
     Interests under Section 15.1 that is consented to by Lenders owning at
     least 80% of the Percentage Interests;

then, so long as no Event of Default exists, the Company shall have the right to
seek a replacement lender which is reasonably satisfactory to the Agent (the
"REPLACEMENT LENDER"). The Replacement Lender shall purchase the interests of
the Affected Lender in the Loan, Letters of Credit and its Commitment and shall
assume the obligations of the Affected Lender hereunder and under the other
Credit Documents upon execution by the Replacement Lender of an Assignment and
Acceptance and the tender by it to the Affected Lender of a purchase price
agreed between it and the Affected Lender (or, if they are unable to agree, a
purchase price in the amount of the Affected Lender's Percentage Interest in the
Loan and Letter of Credit Exposure, or appropriate credit support for contingent
amounts included therein, and all other outstanding Credit Obligations then owed
to the Affected Lender). No assignment fee pursuant to Section 11.1.1(ii) shall
be required in connection with such assignment. Such assignment by any Affected
Lender who has performed its obligations hereunder shall be deemed an early
termination of any LIBOR Pricing Option to the extent of such Affected Lender's
portion thereof, and the Company will pay to such Affected Lender any resulting
amounts due under Section 3.2.4. Upon consummation of such assignment, the
Replacement Lender shall become

                                      -88-

<PAGE>   102

party to this Agreement as a signatory hereto and shall have all the rights and
obligations of the Affected Lender under this Agreement and the other Credit
Documents with a Percentage Interest equal to the Percentage Interest of the
Affected Lender, the Affected Lender shall be released from its obligations
hereunder and under the other Credit Documents, and no further consent or action
by any party shall be required. Upon the consummation of such assignment, the
Company, the Agent and the Affected Lender shall make appropriate arrangements
so that a new Note is issued to the Replacement Lender if it has acquired a
portion of the Loan. The Company and the Guarantors shall sign such documents
and take such other actions reasonably requested by the Replacement Lender to
enable it to share in the benefits of the rights created by the Credit
Documents. Until the consummation of an assignment in accordance with the
foregoing provisions of this Section 11.3, the Company shall continue to pay to
the Affected Lender any Credit Obligations as they become due and payable.

12.  CONFIDENTIALITY. Each Lender will make no disclosure of confidential
information furnished to it by the Company or any of its Subsidiaries unless
such information shall have become public (unless such information has become
public as a result of a violation of this Section 12), except:

          (1) in connection with operations under or the enforcement of this
     Agreement or any other Credit Document to Persons who have a reasonable
     need to be furnished such confidential information in connection with the
     administration or other actions related to this Agreement and who agree, in
     a commercially customary manner, to comply with the restrictions contained
     in this Section 12 with respect to such information;

          (2) pursuant to any statutory or regulatory requirement or any
     mandatory court order, subpoena or other legal process;

          (3) to any parent or corporate Affiliate of such Lender or to any
     Credit Participant, proposed Credit Participant or proposed Assignee in
     connection with the administration or other actions related to this
     Agreement; PROVIDED, HOWEVER, that any such Person shall agree, in a
     commercially customary manner, to comply with the restrictions set forth in
     this Section 12 with respect to such information;

          (4) to its independent counsel, auditors and other professional
     advisors in connection with the administration or other actions related to
     this Agreement with instruction to such Person to keep such information
     confidential; and

          (5) with the prior written consent of the Company, to any other
     Person.

                                      -89-

<PAGE>   103

13.  FOREIGN LENDERS. If any Lender is not created or organized in, or under the
laws of, the United States of America or any state thereof, such Lender shall
deliver to the Company and the Agent the forms described in one of the following
two clauses:

          (a) Two fully completed and duly executed United States Internal
     Revenue Service Form 1001 or 4224 or any successor form, as the case may
     be, certifying that such Lender is entitled to receive payments of the
     Credit Obligations payable to it without deduction or withholding of any
     United States federal income taxes; or

          (b) A statement, executed by such Lender under penalty of perjury,
     certifying that such Lender is not a "bank" within the meaning of section
     881(c)(3)(A) of the Code and two fully completed and duly executed United
     States Internal Revenue Service Forms W-8 or any successor form, certifying
     that such Lender is not a "United States person" within the meaning of
     section 7701(a)(30) of the Code.

Each Lender that delivers any form or statement pursuant to this Section 13
further undertakes to renew such forms and statements by delivering to the
Company and the Agent any updated form, successor form or other certification,
as the case may be, on or before the date that any form or statement previously
delivered pursuant to this Section 13 expires or becomes obsolete or after the
occurrence of any event requiring a change in such most recent form or
statement. If at any time the Company and the Agent have not received all forms
and statements (including any renewals thereof) required to be provided by any
Lender pursuant to this Section 13, Section 3.5 shall not apply with respect to
any amount of United States federal income taxes required to be withheld from
payments of the Credit Obligations to such Lender.

14.  NOTICES. Except as otherwise specified in this Agreement or any other
Credit Document, any notice required to be given pursuant to this Agreement or
any other Credit Document shall be given in writing. Any notice, consent,
approval, demand or other communication in connection with this Agreement or any
other Credit Document shall be deemed to be given if given in writing (including
telex, telecopy or similar teletransmission) addressed as provided below (or to
the addressee at such other address as the addressee shall have specified by
notice actually received by the addressor), and if either (a) actually delivered
in fully legible form to such address (evidenced in the case of a telex by
receipt of the correct answerback) or (b) in the case of a letter, unless actual
receipt of the notice is required by any Credit Document five days shall have
elapsed after the same shall have been deposited in the United States mails,
with first-class postage prepaid and registered or certified.

     If to the Company or any of its Subsidiaries, to it at its address set
forth in Exhibit 7.1 (as supplemented pursuant to Sections 6.4.1 and 6.4.2), to
the attention of the chief financial officer.

                                      -90-

<PAGE>   104

     If to any Lender or the Agent, to it at its address set forth on the
signature pages of this Agreement or in the Register, with a copy to the Agent.

15.  AMENDMENTS, CONSENTS, WAIVERS, ETC.

     15.1. LENDER CONSENTS FOR AMENDMENTS. Except as otherwise set forth herein,
the Agent may (and upon the written request of the Required Lenders the Agent
shall) take or refrain from taking any action under this Agreement or any other
Credit Document, including giving its written consent to any modification of or
amendment to and waiving in writing compliance with any covenant or condition in
this Agreement or any other Credit Document (other than a Hedge Agreement) or
any Default or Event of Default, all of which actions shall be binding upon all
of the Lenders; PROVIDED, HOWEVER, that:

          (1) Except as provided below, without the written consent of the
     Lenders owning at least a majority of the Percentage Interests
     (disregarding the Percentage Interest of any Nonperforming Lender so long
     as such Lender is treated equally with the other Lenders with respect to
     any actions enumerated below), no written modification of, amendment to,
     consent with respect to, waiver of compliance with or waiver of a Default
     under, any of the Credit Documents (other than a Hedge Agreement) shall be
     made.

          (2) Without the written consent of such Lenders as own 100% of the
     Percentage Interests (disregarding the Percentage Interest of any
     Nonperforming Lender so long as such Lender is treated equally with the
     other Lenders with respect to any actions enumerated below):

               (1) None of the conditions specified in Section 5 shall be
          amended, waived or modified.

               (2) No release of all or substantially all of the Credit Security
          or release of the Company or any material Guarantor shall be made (in
          any event, without the written consent of the Lenders, the Agent may
          release particular items of Credit Security or particular Guarantors
          in dispositions permitted by Section 6.11, as modified by amendments
          thereto approved by the Required Lenders, and may release all Credit
          Security pursuant to Section 16.1 upon payment in full of the Credit
          Obligations and termination of the Commitments).

               (3) No incurrence or existence of any Lien on all or
          substantially all of the Credit Security shall be permitted (other
          than Liens securing the Credit Obligations).

                                      -91-

<PAGE>   105

               (4) No alteration shall be made of the Lenders' rights of set-off
          contained in Section 8.2.4.

               (5) No amendment to or modification of this Section 15.1 or the
          definition of "Required Lenders" shall be made.

          (3) Without the written consent of each Lender that is directly
     affected thereby, as well as such Lenders as own at least a majority of the
     Percentage Interests (disregarding the Percentage Interest of any
     Nonperforming Lender so long as such Lender is treated equally with the
     other Lenders with respect to any actions enumerated below):

               (1) No reduction shall be made in (A) the amount of principal of
          the Loan owing to such Lender or reimbursement obligations for
          payments made under Letters of Credit payable or participated to such
          Lender, (B) the interest rate on the portion of the Loan owing to such
          Lender or (C) the Letter of Credit fees or commitment fees owing to
          such Lender with respect to the credit facility provided herein (other
          than amendments and waivers approved by the Required Lenders that
          modify defined terms used in calculating the Applicable Margin or that
          waive an increase in the Applicable Rate as a result of an Event of
          Default).

               (2) No change shall be made in the stated, scheduled time of
          payment of any portion of the Loan owing to such Lender or interest
          thereon or reimbursement of payments made under Letters of Credit or
          fees relating to any of the foregoing payable to such Lender and no
          waiver shall be made of any Default under Section 8.1.1 with respect
          to such Lender (other than amendments and waivers approved by the
          Required Lenders that modify defined terms used in calculating the
          Applicable Margin).

               (3) No increase shall be made in the amount, or extension of the
          term, of the stated Commitments of such Lender beyond that provided
          for under Section 2.

          (4) Without the written consent of the Agent, no amendment or
     modification of any Credit Document shall affect the rights or duties of
     the Agent under the Credit Documents.

          (5) Without the written consent of a Letter of Credit Issuer, no
     amendment or modification of any Credit Document shall affect the rights or
     duties of such Letter of Credit Issuer under the Credit Documents.

                                      -92-

<PAGE>   106

     15.2. COURSE OF DEALING; NO IMPLIED WAIVERS. No course of dealing between
any Lender or the Agent, on one hand, and the Company or any other Obligor, on
the other hand, shall operate as a waiver of any of the Lenders' or the Agent's
rights under this Agreement or any other Credit Document or with respect to the
Credit Obligations. In particular, no delay or omission on the part of any
Lender or the Agent in exercising any right under this Agreement or any other
Credit Document or with respect to the Credit Obligations shall operate as a
waiver of such right or any other right hereunder or thereunder. A waiver on any
one occasion shall not be construed as a bar to or waiver of any right or remedy
on any future occasion. No waiver, consent or amendment with respect to this
Agreement or any other Credit Document shall be binding unless it is in writing
and signed by the Agent or the Required Lenders.

16.  GENERAL PROVISIONS.

     16.1. DEFEASANCE. When all Credit Obligations have been paid, performed and
reasonably determined by the Agent to have been indefeasibly discharged in full,
and if at the time no Lender continues to be committed to extend any credit to
the Company hereunder or under any other Credit Document, this Agreement and the
other Credit Documents shall terminate and, at the Company's written request,
accompanied by such certificates and other items as the Agent shall reasonably
deem necessary, the Credit Security shall revert to the Obligors and the right,
title and interest of the Agent and the Lenders therein shall terminate.
Thereupon, on the Obligors' demand and at their cost and expense, the Agent
shall execute proper instruments, acknowledging satisfaction of and discharging
this Agreement and the other Credit Documents, and shall redeliver to the
Obligors any Credit Security then in its possession; PROVIDED, HOWEVER, that
Sections 3.2.4, 3.5 (for 90 days after termination of this Agreement), 9,
10.7.7, 10.10, 12 and 16 shall survive the termination of this Agreement.

     16.2. NO STRICT CONSTRUCTION. The parties have participated jointly in the
negotiation and drafting of this Agreement and the other Credit Documents with
counsel sophisticated in financing transactions. In the event an ambiguity or
question of intent or interpretation arises, this Agreement and the other Credit
Documents shall be construed as if drafted jointly by the parties and no
presumption or burden of proof shall arise favoring or disfavoring any party by
virtue of the authorship of any provisions of this Agreement and the other
Credit Documents.

     16.3. CERTAIN OBLIGOR ACKNOWLEDGMENTS. Each of the Company and the other
Obligors acknowledges that:

          (1) it has been advised by counsel in the negotiation, execution and
     delivery of this Agreement and the other Credit Documents;

          (2) neither the Agent nor any Lender has any fiduciary relationship
     with or duty to the Obligors arising out of or in connection with this
     Agreement or any other

                                      -93-

<PAGE>   107

     Credit Document, and the relationship between the Agent and Lenders, on one
     hand, and the Obligors, on the other hand, in connection herewith or
     therewith is solely that of debtor and creditor; and

          (3) no joint venture is created hereby or by the other Credit
     Documents or otherwise exists by virtue of the transactions contemplated
     hereby or thereby among the Obligors and the Lenders.

     16.4. VENUE; SERVICE OF PROCESS; CERTAIN WAIVERS. Each of the Company, the
other Obligors, the Agent and the Lenders:

          (1) Irrevocably submits to the nonexclusive jurisdiction of the state
     courts of The Commonwealth of Massachusetts and to the nonexclusive
     jurisdiction of the United States District Court for the District of
     Massachusetts for the purpose of any suit, action or other proceeding
     arising out of or based upon this Agreement or any other Credit Document or
     the subject matter hereof or thereof;

          (2) Waives to the extent not prohibited by applicable law that cannot
     be waived, and agrees not to assert, by way of motion, as a defense or
     otherwise, in any such proceeding brought in any of the above-named courts,
     any claim that it is not subject personally to the jurisdiction of such
     court, that its property is exempt or immune from attachment or execution,
     that such proceeding is brought in an inconvenient forum, that the venue of
     such proceeding is improper, or that this Agreement or any other Credit
     Document, or the subject matter hereof or thereof, may not be enforced in
     or by such court;

          (3) Consents to service of process in any such proceeding in any
     manner at the time permitted by Chapter 223A of the General Laws of The
     Commonwealth of Massachusetts and agrees that service of process by
     registered or certified mail, return receipt requested, at its address
     specified in or pursuant to Section 14 is reasonably calculated to give
     actual notice; and

          (4) Waives to the extent not prohibited by applicable law that cannot
     be waived any right it may have to claim or recover in any such proceeding
     any special, exemplary, punitive or consequential damages.

     16.5. WAIVER OF JURY TRIAL. TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW
THAT CANNOT BE WAIVED, EACH OF THE COMPANY, THE OTHER OBLIGORS, THE AGENT AND
THE LENDERS WAIVES, AND COVENANTS THAT IT WILL NOT ASSERT (WHETHER AS PLAINTIFF,
DEFENDANT OR OTHERWISE), ANY RIGHT TO TRIAL BY JURY IN ANY FORUM IN RESPECT OF
ANY ISSUE, CLAIM OR PROCEEDING ARISING OUT OF THIS AGREEMENT OR ANY

                                      -94-

<PAGE>   108

OTHER CREDIT DOCUMENT OR THE SUBJECT MATTER HEREOF OR THEREOF OR ANY CREDIT
OBLIGATION OR IN ANY WAY CONNECTED WITH THE DEALINGS OF THE LENDERS, THE AGENT,
THE COMPANY OR ANY OTHER OBLIGOR IN CONNECTION WITH ANY OF THE ABOVE, IN EACH
CASE WHETHER NOW EXISTING OR HEREAFTER ARISING AND WHETHER IN CONTRACT, TORT OR
OTHERWISE. Each of the Company and the other Obligors acknowledges that it has
been informed by the Agent that the foregoing sentence constitutes a material
inducement upon which each of the Lenders has relied and will rely in entering
into this Agreement and any other Credit Document. Any Lender, the Agent, the
Company or any other Obligor may file an original counterpart or a copy of this
Agreement with any court as written evidence of the consent of the Company, the
other Obligors, the Agent and the Lenders to the waiver of their rights to trial
by jury.

     16.6. INTERPRETATION; GOVERNING LAW; ETC. Time is (and shall be) of the
essence in this Agreement and the other Credit Documents. All covenants,
agreements, representations and warranties made in this Agreement or any other
Credit Document or in certificates delivered pursuant hereto or thereto shall be
deemed to have been relied on by each Lender, notwithstanding any investigation
made by any Lender on its behalf, and shall survive the execution and delivery
to the Lenders hereof and thereof. The invalidity or unenforceability of any
provision hereof shall not affect the validity or enforceability of any other
provision hereof, and any invalid or unenforceable provision shall be modified
so as to be enforced to the maximum extent of its validity or enforceability.
The headings in this Agreement are for convenience of reference only and shall
not limit or otherwise affect the meaning hereof. This Agreement and the other
Credit Documents constitute the entire understanding of the parties with respect
to the subject matter hereof and thereof and supersede all prior and
contemporaneous understandings and agreements, whether written or oral. This
Agreement may be executed in any number of counterparts which together shall
constitute one instrument. This Agreement shall be governed by and construed in
accordance with the laws (other than the conflict of laws rules) of The
Commonwealth of Massachusetts.

                 [THE REST OF THIS PAGE IS INTENTIONALLY BLANK.]

                                      -95-
<PAGE>   109

     Each of the undersigned has caused this Agreement to be executed and
delivered by its duly authorized officer as an agreement under seal as of the
date first above written.

                               NEXTERA ENTERPRISES, INC.

                               By:   ______________________________________
                                     Title:

                               CE ACQUISITION CORP.
                               CRITIAS, INC.
                               ERG ACQUISITION CORP.
                               LEXECON INC.
                               NEONEXT LLC
                               NETNEXT, INC.
                               NEXTERA BUSINESS PERFORMANCE
                                  SOLUTIONS GROUP, INC.
                               NEXTERA INTERACTIVE, INC.
                               THE PLANNING TECHNOLOGIES
                                  GROUP, L.L.C.
                               PYRAMID IMAGING, INC.
                               SCANADA, INC.
                               SIBSON & COMPANY, LLC
                               SIBSON INTERNATIONAL, LLC
                               TIMAEUS, INC.

                               By: ______________________________________
                                   As an authorized officer of each of the
                                   foregoing corporations or limited liability
                                   companies

                               BANKBOSTON, N.A.

                               By: ______________________________________
                                   Title:

                               BANKBOSTON, N.A.
                               Technology and Communications Division
                               100 Federal Street
                               Boston, Massachusetts  02110

<PAGE>   110

                               Telecopy:  (617) 434-0819
                               Telex:  940581

                               BANK OF AMERICA , N.A.

                               By:______________________________________
                                  Title:

                               BANK OF AMERICA, N.A.
                                  6610 Rockledge Drive, 6th Floor
                                  Bethesda, Maryland  20817
                                  Telecopy:  (301) 571-0719

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