Document:

<PAGE>   1
                                                                   Exhibit 10.9

                            ASSET PURCHASE AGREEMENT

                                      among

                         VIASOURCE COMMUNICATIONS, INC.
                          (f/k/a THE RTK GROUP, INC.);

                         TELECRAFTER ACQUISITION CORP.;

                           NASSAU COMMUNICATIONS, INC.
              (doing business as TELECRAFTER SERVICES CORPORATION);

                                       and

                       BRUCE A. NASSAU AND LURIE S. NASSAU

                            Dated as of July 28, 1999

<PAGE>   2
                               TABLE OF CONTENTS

<TABLE>
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                                                                                                             PAGE
                                                                                                             ----

<S>      <C>                                                                                                <C>
ARTICLE I DEFINITIONS.........................................................................................1

ARTICLE II SALE AND PURCHASE OF THE ASSETS....................................................................6

        Section 2.1 The Assets and the Assumed Liabilities....................................................6
        Section 2.2 Closing...................................................................................6
        Section 2.3 Purchase Price............................................................................6
        Section 2.4 Bill of Sale..............................................................................7
        Section 2.5 Escrow Agreement..........................................................................7
        Section 2.6 Net Worth Adjustment......................................................................7
        Section 2.7 Closing Proration.........................................................................8
        Section 2.8 Allocation of the Purchase Price..........................................................8
        Section 2.9 Transfer Taxes............................................................................8
        Section 2.10 Options..................................................................................9

ARTICLE III REPRESENTATIONS AND WARRANTIESOF SELLER AND THE STOCKHOLDERS......................................9

        Section 3.1 Organization and Qualification of Seller..................................................9
        Section 3.2 Section Intentionally Left Blank..........................................................9
        Section 3.3 No Subsidiaries...........................................................................9
        Section 3.4 Due Authorization of the Stockholders and Seller..........................................9
        Section 3.5 Section Intentionally Left Blank.........................................................10
        Section 3.6 No Conflict..............................................................................10
        Section 3.7 Ownership of the Seller..................................................................10
        Section 3.8 Title to and Condition of Assets.........................................................10
        Section 3.9 Environmental Matters....................................................................12
        Section 3.10 Financial Information...................................................................13
        Section 3.11 Tax Matters Relating to Seller..........................................................15
        Section 3.12 Section Intentionally Left Blank........................................................17
        Section 3.13 Events Subsequent to the Interim Balance Sheet Date.....................................17
        Section 3.14 Contracts, Obligations and Commitments..................................................18
        Section 3.15 Litigation..............................................................................20
        Section 3.16 Compliance with Law.....................................................................20
        Section 3.17 Licenses; Registrations; Permits; Etc...................................................21
        Section 3.18 Brokers.................................................................................21
        Section 3.19 Intellectual Property...................................................................21
        Section 3.20 Insurance...............................................................................22
        Section 3.21 Plans and Agreements Relating to Employees..............................................22
        Section 3.22 No Illegal or Improper Transactions.....................................................24

</TABLE>

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<TABLE>
<CAPTION>

<S>      <C>                                                                                                <C>
        Section 3.23 Related Transactions....................................................................25
        Section 3.24 No Product Liabilities; Product Warranties..............................................25
        Section 3.25 Suppliers and Customers.................................................................25
        Section 3.26 Powers of Attorney......................................................................26
        Section 3.27 Availability of Documents...............................................................26
        Section 3.28 Corporate Records.......................................................................26
        Section 3.29 Ordinary Course.........................................................................26
        Section 3.30 Equipment...............................................................................26
        Section 3.31 Disclosure..............................................................................26
        Section 3.32 Consents; Approvals.....................................................................26
        Section 3.33 Investment Representation...............................................................27

ARTICLE IV REPRESENTATIONS AND WARRANTIES OF PURCHASER AND PARENT............................................27

        Section 4.1 Authority Relative to this Agreement.....................................................27
        Section 4.2 Organization.............................................................................27

ARTICLE V CONDITIONS.........................................................................................28

        Section 5.1 Representations and Warranties True......................................................28
        Section 5.2 Performance..............................................................................28
        Section 5.3 Certificate..............................................................................28
        Section 5.4 No Material Adverse Change...............................................................28
        Section 5.5 Consents and Approvals...................................................................28
        Section 5.6 Opinion of Counsel for the Stockholders and Seller.......................................28
        Section 5.7 Legal Prohibition........................................................................28
        Section 5.8 Consents, Permits, Licenses Etc..........................................................28
        Section 5.9 Closing Matters..........................................................................29
        Section 5.10 Closing Certificates....................................................................29
        Section 5.11 Employment and Non-Competition Agreements...............................................29
        Section 5.12 Good Standing Certificate...............................................................29
        Section 5.13 Financing...............................................................................29
        Section 5.14 Certification of Non-Foreign Status.....................................................29
        Section 5.15 Bill of Sale............................................................................29
        Section 5.16 Escrow Agreement........................................................................29
        Section 5.17 Amended and Restated Stockholders Agreement of Parent...................................30
        Section 5.18 Disclosure Schedule.....................................................................30

ARTICLE VI INDEMNIFICATION...................................................................................30

        Section 6.1 Survival of Representations, Warranties, Covenants and Agreements........................30
        Section 6.2 The Stockholders' and Seller's Indemnity.................................................31
        Section 6.3 The Stockholders' and Seller's Environmental Indemnity...................................31
        Section 6.4 The Purchaser's Indemnity................................................................32
        Section 6.5 Notice and Defense of Claims.............................................................32
        Section 6.6 Reimbursement............................................................................33
        Section 6.7 Limitations..............................................................................34
        Section 6.8 Gross-Up.................................................................................34
</TABLE>

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<TABLE>
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<S>      <C>                                                                                                <C>
        Section 6.9 Relation to Escrow.......................................................................34

ARTICLE VII COVENANTS........................................................................................34

        Section 7.1 Conduct and Preservation of Business.....................................................34
        Section 7.2 Access to Information; Confidentiality...................................................35
        Section 7.3 Filings and Authorizations...............................................................35
        Section 7.4 Public Announcements.....................................................................35
        Section 7.5 Disclosure Schedule......................................................................36
        Section 7.6 Financial Statements.....................................................................36
        Section 7.7 Environmental Inspections and Assessments................................................36
        Section 7.8 No Shopping..............................................................................36
        Section 7.9 Maintenance of Books and Records.........................................................37
        Section 7.10 Further Assurances......................................................................37
        Section 7.11 Release of Liens........................................................................38
        Section 7.12 Consent to Transfer Assets..............................................................38

ARTICLE VIII TERMINATION.....................................................................................38

        Section 8.1 Termination Events.......................................................................38
        Section 8.2 Effect of Termination....................................................................39

ARTICLE IX MISCELLANEOUS.....................................................................................39

        Section 9.1 Expenses.................................................................................39
        Section 9.2 Amendments and Waivers...................................................................39
        Section 9.3 Bulk Sales Laws..........................................................................39
        Section 9.4 Entire Agreement, Assignment.............................................................39
        Section 9.5 Successors and Assigns...................................................................40
        Section 9.6 Notices..................................................................................40
        Section 9.7 Severability.............................................................................41
        Section 9.8 Specific Performance.....................................................................41
        Section 9.9 Governing Law............................................................................41
        Section 9.10 Headings; Table of Contents.............................................................41
        Section 9.11 Counterparts............................................................................41

</TABLE>

       EXHIBITS
       Exhibit A  -  Form of Bill of Sale
       Exhibit B  -  Form of Escrow Agreement
       Exhibit C  -  Form of Promissory Note
       Exhibit D  -  Form of Amended and Restated Stockholders Agreement of
                     ViaSource
       Exhibit 5.6 - Form of Seller's Opinion
       Exhibit 5.11- Form of Employment and Non-Competition Agreement for
                     Bruce A. Nassau

Disclosure Schedule:

<TABLE>
<CAPTION>

SCHEDULE NUMBER         DESCRIPTION
-------------------     ---------------------------------------------------------------------
<S>                     <C>
       3.1              Foreign Good Standing
       3.8(b)           Automobiles And Vehicles
       3.8(c)           Machinery, Equipment And Other Tangible Personal Property
       3.8(f)           Leased Real Property
       3.10(b)          Special Non-Recurring Income/
                        Income Not Earned In The Ordinary Course Of Business
       3.10(g)          Banks And Signing Officers
       3.11(e)          Tax Matters
       3.11(n)          "S Corporation" Elections
       3.13             Material Events Subsequent To Interim Balance Sheet
       3.14             Material Contracts, Obligations or Commitments
       3.14(b)          Consents to Assignment
       3.15             Material Pending Litigation
       3.16             Noncompliance with the Law
       3.17             Licenses, Registrations and Permits
       3.19             Intellectual Property Rights
       3.20             Insurance Policies, Performance Bonds and Letters of Credit
       3.21(a)          Employee Compensation Plans
       3.21(g)          Material Employment/Compensation Agreements
       3.21(h)          Employee Classification Table
       3.23             Interested Directors/Conflicts of Interest
       3.24             Product Liability or Warranty Claims
       3.25             Material Suppliers and Customers
       3.29             Transactions Outside the Ordinary Course of Business
       7.1              Conduct and Preservation of Business/
                        Prohibited, Permitted and Required Transactions
       7.11             Permitted Liens on Assets

</TABLE>

Pursuant to Regulation S-K, Item 601(b)(2), a copy of any omitted schedule will
be furnished to the Commission upon request.

                                      iii
<PAGE>   5

                            ASSET PURCHASE AGREEMENT

         ASSET PURCHASE AGREEMENT, dated as of July 28, 1999, among ViaSource
Communications, Inc., a New Jersey corporation ("Parent"), Telecrafter
Acquisition Corp., a Delaware corporation and a wholly owned subsidiary of
Parent ("Purchaser"), Nassau Communications, Inc., a Colorado corporation doing
business as Telecrafter Services Corporation ("Seller"), and Bruce A. Nassau and
Lurie Nassau (the "Stockholders" and each, individually, a "Stockholder").

         WHEREAS, Bruce A. Nassau and Lurie Nassau own 60% and 40%,
respectively, of the outstanding capital stock of Seller.

         WHEREAS, Seller wishes to sell, and Purchaser wishes to purchase, the
assets relating to the Business (as defined below).

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

                                   ARTICLE I.
                                   DEFINITIONS

         The following terms shall have the following respective meanings for
all purposes of this Agreement:

         "Affiliate" or "affiliate" means, with respect to any Person, any other
Person that, directly or indirectly, controls or is controlled by or is under
common control with such Person. As used in this definition of "Affiliate," the
term "control" and any derivatives thereof mean the possession, directly or
indirectly, of the power to direct or cause the direction of the management and
policies of a Person, whether through ownership of voting securities, by
contract, or otherwise.

         "Affiliated Group" means any affiliated group within the meaning of
Section 1504 of the Code or any similar group defined under a similar provision
of state, local or foreign law, including, but not limited to, any combined,
consolidated or unitary group.

         "Agreement" means this Asset Purchase Agreement, as it may be from time
to time amended, including the Schedules and Exhibits hereto.

         "Assets" has the meaning set forth in SECTION 2.1(a).

         "Assumed Liabilities" means all liabilities of Seller assumed by
Purchaser as set forth in SECTION 2.1(b).

         "Audited Financial Statements" has the meaning set forth in SECTION
3.10(a).

<PAGE>   6

         "Business" means the business historically and presently conducted by
Seller, including, without limitation, the installation and maintenance of cable
television systems (including fiber) and satellite dishes for the transmission
of video, voice and data.

         "Business Day" means any day other than a Saturday or Sunday or a day
on which banking institutions in the State of New York shall be authorized or
obligated by law to be closed.

         "Closing Date" means the date on which the purchase of the Assets by
the Purchaser as contemplated by this Agreement is consummated.

         "Closing Date Balance Sheet" means an unaudited balance sheet of Seller
as of the close of business on the Closing Date. The Closing Date Balance Sheet
shall be prepared in accordance with generally accepted accounting principles on
a basis consistent with that of the Audited Financial Statements.

         "Code" means the Internal Revenue Code of 1986, as amended. All
citations to provisions of the Code, or to the Treasury regulations promulgated
thereunder, shall include any amendments thereto and any substitute or successor
provisions thereto.

         "Contaminated Site List" means any list, registry or other compilation
established by any Governmental Body of facilities or sites that require or
potentially require investigation, removal actions, remedial actions or any
other response under any Environmental Laws.

         "Contracts" has the meaning set forth in SECTION 3.14.

         "Customers" has the meaning set forth in SECTION 3.25.

         "Disclosure Schedule" shall mean the schedules delivered by Seller and
the Stockholders to Purchaser referenced in Article III hereof.

         "Employee Plan" has the meaning set forth in SECTION 3.21(a).

         "Environmental Conditions" means any pollution, contamination,
degradation, damage or injury caused by, related to or arising from or in
connection with the generation, handling, use, treatment, storage,
transportation, disposal, discharge, Release or emission of any Hazardous
Materials.

         "Environmental Laws" means all laws, treatises, compacts, settlement or
consent agreements, orders, writs, injunctions, judgments, rules, regulations,
statutes, ordinances, common law principles, decrees or orders or other binding
requirements with or of any national, international, provincial, federal, state,
municipal, local or foreign Governmental Body relating to the environment
(including, without limitation, natural resources) or the health of humans or
other living organisms, including, without limitation, (a) the control, Release
or remediation of any Hazardous Material or potential Hazardous Material or
protection of the air, water or land, (b) generation, handling, treatment,
storage, disposal or transportation of any Hazardous Material, or (c) exposure
to hazardous, toxic or other substances alleged to be harmful, and (d) final and
binding requirements related to the foregoing imposed by (i) the terms and
conditions

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of any license, permit, approval or other authorization by any Governmental
Body, and (ii) applicable judicial, administrative or other regulatory decrees,
judgments and orders of any such Governmental Body. The term "Environmental
Laws" shall include, but not be limited to, the following statutes and the
regulations promulgated thereunder, as currently in effect or as subsequently
amended: the Clean Air Act, 42 U.S.C. ss. 7401 et seq.; the Clean Water Act, 33
U.S.C. ss. 1251 et seq.; the Resource Conservation Recovery Act, 42 U.S.C. ss.
6901 et seq.; the Superfund Amendments and Reauthorization Act, 42 U.S.C. ss.
11011 et seq.; the Toxic Substances Control Act, 15 U.S.C. ss. 2601 et seq.; the
Water Pollution Control Act, 33 U.S.C. ss. 1251, et seq.; the Safe Drinking
Water Act, 42 U.S.C. ss. 300f et seq.; the Comprehensive Environmental Response,
Compensation and Liability Act, 42 U.S.C. ss. 9601 et seq.; and any similar
state, federal, foreign or local statute or ordinance, including, without
limitation, the Colorado Industrial Site Recovery Act.

         "Environmental Remediation Costs" means all costs and expenses of any
Person of actions or activities to (a) clean up or remove or remediate Hazardous
Materials, (b) prevent or minimize the movement, leaching or migration of
Hazardous Materials, (c) prevent, minimize or mitigate or otherwise respond to
the Release or threatened Release of Hazardous Materials, or injury or damage
from such Release, or (d) comply with the requirements of any Environmental
Laws. Environmental Remediation Costs include, without limitation, costs and
expenses payable in connection with the foregoing for reasonable legal,
engineering or other consultant services, for investigation, testing, sampling
and monitoring (including, without limitation, medical monitoring), for boring,
excavation and construction, for removal, modification or replacement of
equipment or facilities, for labor and material, and for proper storage,
treatment and disposal of Hazardous Materials.

         "ERISA" means the Employee Retirement Income Security Act of 1974, as
it now exists and may hereafter be amended.

         "ERISA Affiliate" means any person, firm or entity (whether or not
incorporated) which, by reason of its relationship with Seller, is required to
be aggregated with Seller under Sections 414(b), 414(c) or 414(m) of the Code,
or which, together with Seller, is a member of a controlled group within the
meaning of Section 4001 (a) of ERISA.

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

         "Financial Statements" has the meaning set forth in SECTION 3.10(a).

         "Governmental Body" means any court or any federal, state, local,
municipal, or other government or governmental department, commission, board,
bureau, agency or instrumentality, domestic or foreign.

         "Hazardous Materials" means any (a) toxic or hazardous materials or
substances; (b) solid, liquid or gaseous wastes, including asbestos, buried
contaminants, chemicals, flammable or explosive materials; (c) radioactive
materials; (d) petroleum wastes and Releases of petroleum products; and (e) any
other chemical, pollutant, contaminant, waste or other

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substance (including, without limitation, any product) that is regulated by or
pursuant to any Environmental Law.

         "HSR Act" means the Hart-Scott-Rodino Antitrust Improvements Act of
1976, as amended.

         "Intellectual Property" means all intellectual property rights,
including, without limitation, (a) all inventions (whether patentable or
unpatentable and whether or not reduced to practice), all improvements thereto,
and all patents, patent applications, and patent disclosures, together with all
reissuances, continuations, continuations-in-part, revisions, extensions, and
reexaminations thereof, (b) all trademarks, service marks, trade dress, logos,
trade names, and corporate names, together with all translations, adaptations,
derivations, and combinations thereof and including all goodwill associated
therewith, and all applications, registrations, and renewals in connection
therewith, (c) all copyrightable works, all copyrights, and all applications,
registrations, and renewals in connection therewith, (d) all mask works and all
applications, registrations, and renewals in connection therewith, (e) all trade
secrets and confidential business information (including ideas, research and
development, know-how, formulas, compositions, manufacturing and production
processes, technologies and techniques, technical data, designs, drawings,
specifications, customer and supplier lists, pricing and cost information, and
business and marketing plans, strategies and proposals), (f) all computer
software (including data and related documentation and all source codes and
object codes), (g) all other proprietary rights, and (h) all copies and tangible
embodiments thereof (in whatever form or medium).

         "Interim Balance Sheet" has the meaning set forth in SECTION 3.10(a).

         "Interim Balance Sheet Date" has the meaning set forth in
SECTION 3.10(a).

         "Knowledge" of or with respect to Seller, means the actual knowledge of
Bruce A. Nassau, Lurie Nassau, David Hamilton, Bobbie Sharp or Jeff Aadrup after
due inquiry.

         "Laws" has the meaning set forth in SECTION 3.8(h).

         "Leased Real Property" has the meaning set forth in SECTION 3.8(f).

         "Liens" has the meaning set forth in SECTION 3.8(f).

         "Litigation" has the meaning set forth in SECTION 3.15.

         "Material Adverse Change" means an occurrence or event which has had or
is reasonably likely to have a material adverse effect on the business,
operations, assets, liabilities, properties, prospects or condition (financial
or otherwise) of the Assets or the Business.

         "Parent Shares" has the meaning set forth in SECTION 2.3.

         "Permit(s)" has the meaning set forth in SECTION 3.17.

                                       4
<PAGE>   9

         "Person" means an individual, partnership, corporation, joint venture,
unincorporated organization, limited liability company, cooperative or other
business organization or a governmental entity or agency thereof.

         "Product Liability" has the meaning set forth in SECTION 3.24(a).

         "Purchase Price" has the meaning set forth in SECTION 2.3.

         "Release" means any spilling, leaking, pumping, pouring, emitting,
emptying, discharging, injecting, escaping, leaching, migrating, dumping or
disposing into the environment.

         "Shares" means the shares of common stock of Seller issued and
outstanding and owned of record and beneficially by the Stockholders.

         "Stockholders" means Bruce A. Nassau and Lurie Nassau.

         "Tangible Assets" has the meaning set forth in SECTION 3.8(g).

         "Tax" or "Taxes" means any and all federal, state, local, foreign and
other taxes, levies, fees, imposts, duties and charges of whatever kind
(including any interest, penalties or additions to the tax imposed in connection
therewith or with respect thereto), including, without limitation, taxes imposed
on, or measured by, income, franchise, profits, or gross receipts, and also ad
valorem, value added, sales, use, service, environmental, real or personal
property, capital stock, license, payroll, withholding, employment, social
security, workers' compensation, unemployment compensation, utility, severance,
production, excise, stamp, occupation, premium, windfall profits, transfer and
gains taxes and custom duties. For purposes of this Agreement, "Taxes" also
includes any obligations under any agreements or arrangements with any person
with respect to the liability for, or sharing of, Taxes (including, without
limitation, pursuant to Treas. Reg. ss. 1.1502-6 or comparable provisions of
state, local or foreign Tax law) and including, without limitation, any
liability for Taxes as a transferee or successor, by contract or otherwise.

         "Tax Reserve" has the meaning set forth in SECTION 3.11(b).

         "Tax Return" means any return, report, claim for refund, information
statement, and other documentation (including, without limitation, all
schedules, exhibits and other attachments thereto and any other additional or
supporting material) filed or maintained, or required to be filed or maintained,
in connection with the calculation, determination, assessment or collection of
any Tax (including, without limitation, estimated Taxes).

         "Taxable Period" means any taxable year or any other period that is
treated as a taxable year (or other period, or portion thereof, in the case of a
Tax imposed with respect to such other period, E.G., a quarter or a portion of a
taxable period in the case of a taxable period that begins before and ends after
the Closing Date) with respect to which any Tax may be imposed under any
applicable statute, rule, law, or regulation.

         "Unaudited Financial Statements" has the meaning set forth in SECTION
3.10(a).

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<PAGE>   10

                                  ARTICLE II.
                         SALE AND PURCHASE OF THE ASSETS

         Section 2.1 THE ASSETS AND THE ASSUMED LIABILITIES (a) Upon the terms
and subject to the conditions of this Agreement, on the Closing Date, except as
set forth in Section 2.6, Seller shall sell, convey, assign, transfer and
deliver to the Purchaser and the Purchaser shall purchase and acquire good and
valid title to all of the properties, assets and rights of the Seller and
Seller's Affiliates, which exist at the Closing Date, used in connection with,
or necessary for the conduct of, the Business as it is conducted by Seller, in
the ordinary course, consistent with past practice (collectively, the "Assets").

         (b) Upon the terms and subject to the conditions of this Agreement, on
the Closing Date, Purchaser shall assume and agree to pay, discharge and perform
all liabilities and obligations (whether known or unknown, fixed or contingent)
of Seller, to the extent that they arise out of or relate to the ownership, use
or operation of the Assets (collectively, the "Assumed Liabilities"). The
Assumed Liabilities include (i) all obligations in respect of the ongoing or
future performance of Contracts unless a Contract is terminated by the other
party thereto due to an improper assignment by Seller or otherwise is not
effectively transferred and assigned to Purchaser; and (ii) all obligations in
respect of the ongoing or future performance of all other contracts, licenses,
permits and other agreements actually assigned by Seller to Purchaser in
accordance with this Agreement. The Assumed Liabilities, however, do not include
any obligation or liability for Taxes (i) of or that relates to the Seller, any
Stockholder or any Affiliate of the Seller or (ii) that relates to or arises as
a result of the sale or transfer of the Assets from the Seller to the Purchaser.

         Section 2.2 CLOSING. Subject to the provisions of Article V hereof, the
closing (the "Closing") of the sale and purchase of the Assets shall take place
at the opening of business on August 31, 1999, New York time, at the offices of
Dewey Ballantine LLP or such other time, place or date as the parties may
mutually agree. Failure to consummate the transactions provided for in this
Agreement on the date and time selected pursuant to this Section 2.2 shall not,
except as permitted by Section 7.1 hereof, result in the termination of this
Agreement and shall not relieve any party to this Agreement of any obligation
hereunder.

         Section 2.3 PURCHASE PRICE Subject to the terms and conditions herein
set forth, Seller hereby agrees to sell and Purchaser agrees to purchase from
Seller such Assets for (a) $10.5 million of immediately available funds, (b) 4.5
million shares of common stock, no par value, of ViaSource Communications, Inc.
(the "Parent Shares") and (c) a $3 million promissory note payable to Seller in
the form attached hereto as Exhibit C (the "Note") (collectively, the "Purchase
Price").

                  The funds referred to in (a) above shall be allocated as
follows: (i) $10 million shall be delivered by wire transfer to or upon the
order of Seller; and (ii) the remaining $0.5 million shall be delivered by wire
transfer to Seller's account, subject to the condition that such funds be used
solely for the purpose of cash disbursements to Seller's employees in connection
with the transactions contemplated by this Agreement.

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<PAGE>   11

                  The Parent Shares referred to in (b) above shall be allocated
as follows: (i) 3.9 million shares shall be issued, at the direction of Seller,
to Bruce Nassau and Lurie Nassau, of which 2.34 million shares will be issued to
Bruce Nassau and 1.56 million shares will be issued to Lurie S. Nassau; (ii) 0.1
million shares shall be held in escrow pursuant to the Escrow Agreement referred
to in Section 2.5; and (iii) the remaining 0.5 million shares shall be
transferred to the Seller, subject to the condition that such shares shall be
used solely for the purpose of stock bonuses to Seller's employees in connection
with the transactions contemplated by this Agreement.

         Section 2.4 BILL OF SALE. At the Closing, Purchaser, Seller and the
Stockholders shall deliver or cause to be delivered a duly executed Bill of Sale
substantially in the form of Exhibit A attached hereto;

         Section 2.5 ESCROW AGREEMENT. At the Closing, Parent, Purchaser,
Seller, the Stockholders and an escrow agent shall deliver or cause to be
delivered a duly executed Escrow Agreement substantially in the form of Exhibit
B attached hereto.

         Section 2.6 NET WORTH ADJUSTMENT (a) On the Closing Date, Seller shall
deliver to Purchaser a copy of the estimated Closing Date Balance Sheet. In the
event that the estimated Closing Date Balance Sheet reveals that the Seller's
Net Worth as of the Closing Date (the "Closing Date Net Worth") is greater than
its Net Worth as of December 31, 1998 as set forth on the Audited Financial
Statements (such excess, the "Excess Net Worth"), the Assets shall not include
cash of the Seller in an amount equal to the sum of (i) the amount of the U.S.
federal and state income tax liability of the Stockholders solely attributable
to income of the Seller from the period beginning January 1, 1999 and ending on
the day immediately prior to the Closing Date, and excluding any income or gain
from the sale of the Assets, less the aggregate amount of any distributions of
cash or property by the Seller to any Stockholder during or with respect to the
period beginning January 1, 1999 and ending on the Closing Date (the amount
described in this clause (i), the "1999 Earnings Tax") and (ii) 50% of the
excess of (A) the Excess Net Worth over (B) the 1999 Earnings Tax; PROVIDED,
that in no event shall the Assets remaining with the Seller exceed the Excess
Net Worth. For purposes hereof, "Net Worth" shall mean total assets less total
liabilities of the Company, determined in accordance with generally accepted
accounting principles applied on a basis consistent with that of the Audited
Financial Statements.

         (b) No later than 20 days after the Closing Date, the Seller shall
deliver to Purchaser (i) a certificate signed by the Seller and the Stockholders
certifying the amount of the Seller's Net Worth as of the Closing Date and (ii)
the Closing Date Balance Sheet. No later than 30 days after delivery of the
Closing Date Balance Sheet, Purchaser shall complete a review of the Closing
Date Balance Sheet and shall inform the Stockholders in writing that the Closing
Date Balance Sheet is acceptable or object to the Closing Date Balance Sheet in
writing setting forth a specific description of Purchaser's objections. If
Purchaser objects to the Closing Date Balance Sheet and the Stockholders do not
agree with Purchaser's objections or such objections are not resolved on a
mutually agreeable basis within 30 days of the Stockholders receipt of
Purchaser's objections, any such disagreement shall be promptly submitted to a
mutually acceptable "big five" accounting firm that is unaffiliated with either
party (the "Unaffiliated Firm"). The Unaffiliated Firm shall resolve such
dispute within 30 days after said Unaffiliated Firm's engagement by the parties.
The decision of such Unaffiliated Firm shall be final and binding

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<PAGE>   12

upon the Seller, the Stockholders and Purchaser and its fees, costs and expenses
shall be borne by the party against whom the Unaffiliated Firm shall rule. In
the event that the Net Worth on the Closing Date Balance Sheet exceeds the Net
Worth on the estimated Closing Date Balance Sheet and the amount of Assets
transferred was reduced pursuant to clause (ii) of paragraph (a) above,
Purchaser shall pay to Seller 50% of such excess. In the event that the Net
Worth on the Closing Date Balance Sheet is less than the Net Worth on the
estimated Closing Date Balance Sheet, Seller and each Stockholder, jointly and
severally, shall pay to Purchaser 50% of such excess; provided that Purchaser
may set off such amount against its obligations to Seller under the Note.

         Section 2.7 CLOSING PRORATION. After the Closing, any ad valorem, use,
real and personal property and other similar Taxes, installments or special
assessments, utility, water or similar payments arising from, or relating to,
the Assets or the conduct of the Business, which become due and payable on or
after the Closing Date and relate to periods both before and after the Closing
Date, shall be prorated and adjusted between the Stockholders and the Purchaser
as of the Closing Date on a per diem basis and the Stockholders shall be
responsible for and pay to the Purchaser the portion of such amounts allocable
to the period prior to the Closing Date for which payment is due on or after the
Closing Date at least five (5) Business Days prior to the date such Taxes become
due and payable.

         Section 2.8 ALLOCATION OF THE PURCHASE PRICE. On or prior to the
Closing Date, the Seller and the Purchaser shall mutually agree on an allocation
of the Purchase Price and the amount of the Assumed Liabilities (and all other
capitalizable costs) among the Assets and other relevant items in accordance
with Section 1060 of the Code and the Treasury regulations promulgated
thereunder and all applicable provisions of state, local and foreign law (such
allocations, the "Section 1060 Allocations"). If the Seller and the Purchaser
are unable to agree with respect to the Section 1060 Allocations, the Seller and
the Purchaser shall select a firm of independent certified public accountants
mutually acceptable to the Seller and the Purchaser from among
PricewaterhouseCoopers LLP, KPMG Peat Marwick LLP, Deloitte & Touche LLP, Ernst
& Young LLP, and Arthur Andersen LLP to determine such allocations. The
conclusions of such accounting firm shall be binding on the parties. The fees
and expenses of such accounting firm shall be shared equally by the Stockholders
and the Purchaser. Each of the parties hereto agrees (i) to prepare and file Tax
Returns, including, without limitation, Form 8594 (or any successor form), in a
manner consistent with the Section 1060 Allocations, as finally determined
pursuant to this Section 2.8, (ii) to report this transaction for federal,
state, local and foreign income tax purposes in accordance with the Section 1060
Allocations, as finally determined pursuant to this Section 2.8, and (iii) to
use its best efforts to sustain the Section 1060 Allocations, as finally
determined pursuant to this Section 2.8, in any subsequent Tax audit, dispute,
claim or similar proceeding.

         Section 2.9 TRANSFER TAXES. Notwithstanding any other provision of this
Agreement, all transfer, registration, stamp, documentary, sales, use and
similar Taxes (including, but not limited to, all applicable real estate
transfer or gains Taxes), any penalties, interest and additions to Tax, and
court, registration and filing fees incurred in connection with this Agreement
shall be the responsibility of and be timely paid by the Seller; Purchaser
hereby agrees to reimburse Seller for 50% of any such Taxes upon delivery to
Purchaser of a receipt or other evidence of

                                       8
<PAGE>   13

payment. The Seller and the Purchaser shall cooperate in the timely making of
all filings, returns, reports and forms as may be required in connection
therewith.

         Section 2.10 OPTIONS. In connection with the transactions contemplated
hereby, Parent hereby agrees to allocate 500,000 options to purchase Common
Stock of Parent under Parent's 1999 Stock Incentive Plan to employees of Seller
(other than Bruce A. Nassau and Lurie S. Nassau) as directed by Seller.

                                  ARTICLE III.
                         REPRESENTATIONS AND WARRANTIES
                         OF SELLER AND THE STOCKHOLDERS

         Each of the Stockholders and Seller, jointly and severally, hereby
represents and warrants to Parent and Purchaser as of the date hereof and as of
the Closing Date that:

         Section 3.1 ORGANIZATION AND QUALIFICATION OF SELLER Seller is a
corporation duly organized, validly existing and in good standing under the laws
of the jurisdiction of its incorporation, with corporate power and authority and
all licenses, permits and authorizations necessary to conduct its business and
to own, lease and operate the properties and assets used in connection
therewith. Seller is in good standing as a foreign corporation and licensed or
qualified to transact business in each jurisdiction in which the conduct of its
business or its ownership, leasing or operation of properties and assets
requires it to be so licensed or qualified, except where the failure to be so
licensed or qualified would not cause a Material Adverse Change, which
jurisdictions are listed on SCHEDULE 3.1. Seller is not in default under or in
violation of any provision of its certificate of incorporation or by-laws, true,
correct and complete copies of which have been delivered to Purchaser.

         Section 3.2 SECTION INTENTIONALLY LEFT BLANK

         Section 3.3 NO SUBSIDIARIES Seller has no direct or indirect
subsidiaries, or any direct or indirect interests or investments in any other
Person.

         Section 3.4 DUE AUTHORIZATION OF THE STOCKHOLDERS AND SELLER Each of
the Stockholders and Seller has full right, power and authority to enter into
this Agreement and the other documents required to be delivered by it or him or
her hereunder, to perform its or his or her obligations hereunder and thereunder
and to consummate the transactions contemplated hereby and thereby. The
execution and delivery of this Agreement and the other documents required to be
delivered hereunder and the consummation of the transactions contemplated hereby
and thereby have been duly authorized by all necessary corporate action on the
part of Seller.

         Each of this Agreement and the other documents required to be delivered
hereunder has been duly executed and delivered by each of the Stockholders and
Seller. This Agreement is and each other agreement contemplated hereby to which
Seller and/or each Stockholder will be a party will be, upon execution and
delivery thereof by Seller and/or each Stockholder, a legal, valid and binding
obligation of Seller and/or each Stockholder, enforceable against it or him or
her in accordance with its terms (except as enforceability may be limited by any
applicable

                                       9
<PAGE>   14

bankruptcy, insolvency or other laws affecting creditors' rights generally or by
general principles of equity, regardless of whether such enforceability is
considered in equity or at law).

         Section 3.5 SECTION INTENTIONALLY LEFT BLANK

         Section 3.6 NO CONFLICT Neither the execution and delivery of this
Agreement or any of the other documents contemplated hereby nor the consummation
of the transactions contemplated hereby or thereby by Seller and/or each
Stockholder will (a) conflict with, result in a breach or violation of or
constitute (or with notice or lapse of time or both constitute) a default under,
(i) the certificate of incorporation or by-laws of Seller, (ii) any law,
statute, regulation, order, judgment or decree or (iii) any instrument, contract
or other agreement to which Seller or any Stockholder is a party or by which
Seller (or any of its properties or assets) or any Stockholder is subject or
bound; (b) result in the creation of, or give any party the right to create, any
lien, charge, option, security interest or other encumbrance upon the shares,
assets or properties of Seller; (c) terminate or modify, or give any third party
the right to terminate or modify, the provisions or terms of any instrument,
contract or other agreement to which Seller or any Stockholder is a party or by
which Seller (or any of its properties or assets) or any Stockholder is subject
or bound or require Seller or any Stockholder to prepay any amount thereunder;
(d) require Seller or any Stockholder to obtain any authorization, consent,
approval or waiver from, to give any notification to, or to make any filing
with, any governmental body or authority or to obtain the approval or consent of
any other Person; or (e) result in any suspension, revocation, impairment,
forfeiture or nonrenewal of any Permit, license, qualification, authorization or
approval applicable to Seller.

         Section 3.7 OWNERSHIP OF THE SELLER

         (a) Bruce A. Nassau and Lurie Nassau directly own 60% and 40% of the
outstanding capital stock of the Seller, respectively (prior to the Closing
Date).

         Section 3.8 TITLE TO AND CONDITION OF ASSETS

         (a) The Assets constitute all of the assets, properties and rights used
in or necessary for the conduct of the Business as currently conducted. The
Seller is the sole owner of the Assets and Assumed Liabilities. Immediately
following the Closing, Seller will not own or lease any assets, properties or
rights which are used in or are necessary for the conduct of the Business.

         (b) SCHEDULE 3.8(b) contains a true, correct and complete list of all
automobiles and vehicles owned, leased or used by Seller, indicating whether
each such automobile or vehicle is leased.

         (c) SCHEDULE 3.8(c) contains a true, correct and complete list of all
machinery, equipment, computers and computer hardware, tools, supplies,
leasehold improvements, construction in progress, furniture, fixtures, and other
tangible personal property (other than vehicles and automobiles) owned, leased
or used by Seller, indicating with respect to all such listed property whether
such property is leased.

         (d) Seller does not own any real property.

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<PAGE>   15

         (e) Seller does not occupy or use any real property or building or
other units except the Leased Real Property.

         (f) SCHEDULE 3.8(f) contains a true, correct and complete list of all
leases of real property or buildings or other units under which Seller is a
lessee (collectively, the "Leased Real Property"). The Seller has a valid and
subsisting leasehold interest in all of the Leased Real Property, free and clear
of all liens, leases, encumbrances, claims under bailment and storage
agreements, options, equities, conditional sales contracts, title retention
agreements, encroachments, conditions, limitations, security interests, charges
and restrictions (collectively, "Liens"), except for Liens, if any, for real
property taxes not yet due and payable, and all restrictive covenants, easements
and rights, including, but not limited to, easements for power lines, water
lines, communication lines, sewer, roadways and other means of ingress and
egress, to which the Leased Real Property may be subject or which are necessary
to conduct the business conducted on such Leased Real Property. Seller enjoys
peaceful and undisturbed possession under all such leases and all such leases
are valid and enforceable in accordance with their respective terms, are in full
force and effect, and there is not under any such lease any default by Seller
or, to the Knowledge of Seller, by any other party to any such lease, or any
condition, event or act which, with the giving of notice or lapse of time, or
both, would constitute such a default. The consummation of the transactions
contemplated by this Agreement will not require notification to or the consent
or approval of any lessor of any of the Leased Real Property except as set forth
on SCHEDULE 3.8(f). True, correct and complete copies of the leases with respect
to the Leased Real Property have been delivered or made available to Purchaser.

         (g) All buildings, structures, improvements, fixtures, facilities,
equipment and all components of all buildings, structures and other improvements
included within the Leased Real Property, including, but not limited to, the
roofs and structural elements thereof and the heating, ventilation, air
conditioning, plumbing, electrical, mechanical, sewer, waste water, storm water,
paving and parking equipment, systems and facilities included therein
(collectively, the "Tangible Assets") are usable in the regular and ordinary
course of business. To Seller's Knowledge, there are no unsatisfied requests for
any repairs, restorations or improvements to the Leased Real Property or any
Tangible Assets from any governmental entity, there are no ongoing material
repairs to the Leased Real Property or any Tangible Assets being made by or on
behalf of Seller, and no portion of the Leased Real Property or any Tangible
Assets currently requires repair or replacement which has knowingly been
deferred. No person other than Seller owns any equipment or other Tangible
Assets necessary to the operation of the Business, except for items under valid
lease to Seller. Seller has not transferred any air rights or development rights
relating to the Leased Real Property. Seller has no outstanding contracts or
commitments for any improvements or capital expenditures with respect to the
Leased Real Property which have not been either fully paid for or reflected on
the Closing Date Balance Sheet.

         (h) None of such Leased Real Property is subject to any pending
condemnation or similar proceeding by any Governmental Body and to the Knowledge
of Seller, no such condemnation is threatened. The use and operation of the
Leased Real Property is in full compliance with all applicable statutes, rules,
regulations, ordinances, orders, writs, injunctions, judgments, decrees, awards
and restrictions of every Governmental Body having jurisdiction over any of the
Leased Real Property and every instrumentality or agency thereof (including,
without limitation, Environmental Laws and applicable statutes, rules,
regulations, orders and restrictions relating to

                                       11
<PAGE>   16

zoning, land use, construction, occupancy, safety, health, pollution controls,
employment and employment practices and access by the handicapped)
(collectively, "Laws"). There are no circumstances which would interfere with
the continued use and operation of the Leased Real Property following the
Closing Date in the manner currently conducted without the granting of any
special permit, exception, approval or variance. Neither Seller nor any
Stockholder has received any written notice of any violation (or claimed
violation) of or investigation regarding any Laws or any condemnation action or
proceeding with respect to any of the Leased Real Property.

         (i) No portion of the Leased Real Property has suffered any damage by
fire or other casualty which has not heretofore been completely repaired and
restored to its original condition.

         (j) Seller has made available to Purchaser true, correct and complete
copies of any title policies and surveys with respect to the Leased Real
Property.

         Section 3.9 ENVIRONMENTAL MATTERS

         (a) (i) All Permits and filings required under Environmental Laws that
are necessary for the operations of the Business, Seller, the Leased Real
Property, the Tangible Assets and any other property or assets owned, operated,
occupied or used by Seller or Seller's Affiliates ("Environmental Permits") have
been obtained or made and are in full force and effect, and the Stockholders and
Seller are unaware of any basis for revocation or suspension of any such
Environmental Permits; (ii) no Environmental Laws impose any obligation upon
Purchaser, the Stockholders, Seller or Seller's Affiliates, as a result of any
transaction contemplated hereby, to provide any prior notification to any
governmental entity of the transactions contemplated hereby; and (iii) there has
been no violation of such Environmental Permits, including, without limitation,
production levels or emission levels specified in such Environmental Permits.

         (b) The Stockholders (with respect to the Business), Seller, Seller's
Affiliates and the Business have at all times complied with all applicable
Environmental Laws.

         (c) There are no existing, pending or, to the Knowledge of Seller,
threatened actions, suits, claims, investigations, inquiries or proceedings by
or before any Governmental Body directed against the Stockholders (with respect
to the Business), Seller or Seller's Affiliates, and the Stockholders (with
respect to the Business), Seller and Seller's Affiliates are not subject to any
orders, judgments, decrees or settlements, and none of the Stockholders, Seller
or Seller's Affiliates has received or is otherwise aware of any notices, claim
or other communications alleging any potential liability of the Stockholders
(with respect to the Business), Seller or Seller's Affiliates, which pertain or
relate to Environmental Laws, including, without limitation, (i) any remedial
obligations at any location under any Environmental Law, (ii) violations of any
Environmental Law at any location, (iii) personal injury or property damage
claims relating to a Release of Hazardous Materials at any location, or (iv)
Environmental Remediation Costs.

         (d) No portion of the Leased Real Property or any other property owned,
operated, occupied or used by Seller or Seller's Affiliates is listed on any
Contaminated Site List.

         (e) There has been no Release of any Hazardous Materials on, to, from
or underlying the Leased Real Property.

                                       12
<PAGE>   17

         (f) No asbestos-containing materials or polychlorinated biphenyls
currently are present in, on or underlying the Leased Real Property or any other
property owned, operated, occupied or used by Seller or Seller's Affiliates.

         (g) There are no underground storage tanks, dumps or septic fields,
active or abandoned, at any of the Leased Real Property or any other property
owned, operated, occupied or used by Seller or Seller's Affiliates.

         (h) Purchaser has been provided with all engineering, geologic,
environmental reports and other documents in the possession or control of
Seller, Seller's Affiliates or any Stockholder relating to the Leased Real
Property or any other property owned, operated, occupied or used by Seller or
Seller's Affiliates, including, without limitation, those relating to (i) any
Environmental Conditions existing on the Leased Real Property and (ii) any
violations of any Environmental Laws.

         (i) All Hazardous Materials generated, used, stored, transported,
treated, disposed of or otherwise handled by or on behalf of Seller or Seller's
Affiliates have been generated, used, stored, transported, treated, disposed of
and otherwise handled in compliance with all applicable Environmental Laws.

         (j) None of the Stockholders (with respect to the Business), Seller or
Seller's Affiliates has any current liability, nor is there any liability which
may be reasonably anticipated, for Environmental Remediation Costs at any
location.

         (k) None of the Stockholders (with respect to the Business), Seller or
Seller's Affiliates has any current liability, nor is there any liability which
may be reasonably anticipated, under Environmental Laws (including, without
limitation, for the violation of any Environmental Law or Environmental
Remediation Costs) in connection with any businesses or properties previously
owned, leased, operated or otherwise used by Seller or Seller's Affiliates or
any of their predecessors.

         (l) None of Seller or Seller's Affiliates has ever performed or
authorized the performance of vehicle fueling, maintenance or washing at any
location owned, leased, or operated by any of them.

         (m) None of Seller or Seller's Affiliates has ever engaged in surface
or subsurface excavation or disturbance.

         Section 3.10 FINANCIAL INFORMATION

         (a) Seller has delivered to Purchaser (i) true, correct and complete
copies of Seller's audited balance sheet as of December 31, 1998 and the related
statements of operations and cash flows (together with the auditors' reports
thereon) for the period ended December 31, 1998, together with notes to such
financial statements (the "Audited Financial Statements"), (ii) true, correct
and complete copies of Seller's unaudited balance sheets as of March 31, 1999
and the related statements of operations and cash flows for the periods then
ended (the "Unaudited Financial Statements"), and (iii) a copy of the estimated
Closing Date Balance Sheet. Seller will deliver to the Purchaser a true, correct
and complete copy of the Closing Date Balance Sheet

                                       13
<PAGE>   18

within 30 days subsequent to the Closing Date. The Audited Financial Statements,
the Unaudited Financial Statements and the Closing Date Balance Sheet are herein
collectively referred to as the "Financial Statements." The unaudited balance
sheet of Seller at March 31, 1999 is herein referred to as the "Interim Balance
Sheet," and March 31, 1999 is herein referred to as the "Interim Balance Sheet
Date."

         (b) The Financial Statements are in accordance with the books and
records of Seller and have been prepared in accordance with generally accepted
accounting principles consistently applied throughout the periods covered
thereby. The balance sheets included in the Financial Statements present fairly
as of their respective dates the financial condition of Seller (subject, in the
case of the Unaudited Financial Statements, to year end adjustments that may be
required upon audit, which adjustments will not cause a Material Adverse Change
on such financial statements). All liabilities and obligations of Seller,
whether absolute, accrued, contingent or otherwise, whether direct or indirect,
and whether due or to become due, which existed at the date of such Financial
Statements have been disclosed on the balance sheets included in the Financial
Statements or in notes to the Financial Statements to the extent such
liabilities were required, under generally accepted accounting principles, to be
so disclosed. The statements of operations and cash flows included in the
Financial Statements present fairly the results of operations and cash flows of
Seller for the periods indicated (subject, in the case of the Unaudited
Financial Statements, to year end adjustments that may be required upon audit,
which adjustments will not have cause a Material Adverse Change), and the notes
included in the Financial Statements present fairly the information purported to
be shown thereby. The statements of operations included in the Financial
Statements do not contain any items of special or non-recurring income material
to Seller or other income not earned in the ordinary course of business except
as noted on SCHEDULE 3.10(b).

         (c) The accounts receivable of Seller as set forth on the Closing Date
Balance Sheet are valid and genuine; have arisen solely out of bona fide sales
and deliveries of goods, performance of services and other business transactions
in the ordinary course of business consistent with past practice; are not
subject to valid defenses, set-offs or counterclaims; and, are collectible at
the full recorded amount thereof (less the allowance for doubtful accounts
recorded on such balance sheet) by use of Seller's normal collection methods
without resort to litigation or reference to a collection agency. Seller has not
entered into any agreements with any Customers or clients since the date of the
Financial Statements, nor will Seller enter into any agreements with any
Customers or clients between the date hereof and the Closing Date, where it did
not have, or does not have, a reasonable basis to believe that said Customer has
the ability to pay, as and when due, for the services rendered by Seller. The
books and records of Seller state correctly the facts with respect to each
account receivable of Seller, and the balance due thereon. Each payment
reflected on such books or records as having been made on each such account
receivable was made by the respective account debtor and not directly or
indirectly by any director, officer, employee or agent of Seller, as the case
may be, unless such Person is shown on said books and records as such account
debtor. Each document and instrument evidencing, securing or relating to each
account receivable, including, without limitation, each insurance policy,
certificate, bill and statement is correct and complete in all material
respects, is genuine and valid and is enforceable in accordance with its terms,
and is not subject to any defense, claim of disability, counterclaim or offset
and, to Seller's knowledge, there is no threatened, intended or proposed
defense, claim of disability, counterclaim or offset with respect thereof,
subject to a

                                       14
<PAGE>   19

normal allowance for doubtful accounts. Each account receivable and each
document and instrument, and each transaction underlying or relating to it
conforms in all material respects, including, without limitation, in respect of
interest rates charged, notices given and disclosures made, to the requirements
and provisions of each applicable law, rule, regulation or order relating to
credit, consumer credit, credit practices, credit advertising, credit reporting,
retail installment sales, credit cards, collections, usury, interest rates and
truth-in-lending, including, without limitation, the Federal Truth in Lending
Act, as amended, and Regulation Z issued by the Board of Governors of the
Federal Reserve System thereunder.

         (d) All supply inventory of Seller reflected on the Closing Date
Balance Sheet was acquired and has been maintained in the ordinary course of
business; consists substantially of a quality, quantity and condition usable in
the ordinary course of business; is valued at the lower of cost or market in
accordance with generally accepted accounting principles and consistent with the
Financial Statements; and is not subject to any write down or write-off.

         (e) Seller has no liabilities of any kind whatsoever, whether or not
accrued and whether or not contingent or absolute, determined or determinable or
otherwise, including, without limitation, documentary or standby letters of
credit, workers' compensation claims, bid or performance bonds, or customer or
third party guarantees, and no existing condition, situation or set of
circumstances that could reasonably result in such a liability, other than
liabilities set forth on the Interim Balance Sheet and the Closing Date Balance
Sheet and liabilities which have arisen after the Interim Balance Sheet Date and
the Closing Date Balance Sheet in the ordinary course of business and consistent
with past practice (none of which is a liability for breach of contract, breach
of warranty, tort, infringement or a lawsuit).

         (f) The books, records and accounts of Seller accurately and fairly
reflect the transactions undertaken by and the assets and liabilities of Seller.

         (g) SCHEDULE 3.10(g) lists the name and address of every bank and other
financial institution in which Seller maintains an account (whether checking,
savings or otherwise), lock box or safe deposit box, and the account numbers and
names of persons having signing authority or other access thereto.

         (h) Since the Interim Balance Sheet Date there has been no Material
Adverse Change, whether as a result of any legislative or regulatory change,
revocation of any license or right to do business, fire, explosion, accident,
casualty, labor trouble, flood, drought, riot, storm, condemnation or act of God
or otherwise; and, to the best Knowledge of Seller, no fact or condition exists
or is contemplated or threatened which could reasonably be anticipated to cause
such a change in the future.

     Section 3.11 TAX MATTERS RELATING TO SELLER Except as set forth on SCHEDULE
3.11:

         (a) All Tax Returns required to be filed by, on behalf of or with
respect to Seller have been prepared in the manner required by applicable law
and duly and timely filed with the appropriate taxing authorities in all
jurisdictions in which such Tax Returns are required to be filed (after giving
effect to any valid extensions of time in which to make such filings), and all

                                       15
<PAGE>   20

such Tax Returns were true, complete and correct in all respects. No such Tax
Returns have been audited or are currently being audited.

         (b) All Taxes payable, whether or not shown (or required to be shown)
on a Tax Return, by, on behalf of or with respect to Seller, or in respect of
its income, assets or operations (including interest and penalties), have been
fully and timely paid, and adequate reserves or accruals for Taxes (without
regard to deferred Tax assets and liabilities) (the "Tax Reserve") have been
provided on the Financial Statements for the payment of any Taxes not yet due
and payable.

         (c) Seller has not executed or filed with any taxing authority any
agreement, waiver or other document or arrangement extending or having the
effect of extending the period for assessment or collection of Taxes (including,
but not limited to, any applicable statute of limitation), and no power of
attorney with respect to any Tax matter is currently in force. No extension of
time with respect to any date on which a Tax Return was or is to be filed by, on
behalf of or with respect to the Seller is in force.

         (d) Seller has complied in all material respects with all applicable
laws, rules and regulations relating to the payment and withholding of Taxes,
including, without limitation, the withholding and reporting requirements under
Sections 1441 through 1464, 3401 through 3406 and 6041 through 6049 of the Code,
and has duly and timely withheld from employee salaries, wages and other
compensation and has paid over to the appropriate taxing authorities all amounts
required to be so withheld and paid over for all periods under all applicable
laws.

         (e) Seller has made available to Purchaser true and complete copies of
(i) all U.S. federal, state, local and foreign Tax Returns of Seller and (ii)
any audit report issued relating to Taxes due from or with respect to Seller, or
its income, assets or operations. All Tax Returns filed by, on behalf of or with
respect to Seller for the taxable years ended on the respective dates set forth
on SCHEDULE 3.11(e) have been examined by the relevant taxing authority or the
statute of limitations with respect to such Tax Returns has expired.

         (f) No claim has been made by a taxing authority in a jurisdiction
where Seller does not file Tax Returns such that it is or may be subject to
taxation by that jurisdiction.

         (g) All deficiencies asserted or assessments made as a result of
examinations by any taxing authority of the Tax Returns of or covering or
including Seller have been fully paid, and there are no other audits or
investigations by any taxing authority or proceedings in progress, nor have the
Stockholders or Seller received any notice from any taxing authority that it
intends to conduct such an audit or investigation. No issue has been raised in
writing by a U.S. federal, state, local or foreign taxing authority in any
current or prior examination which, by application of the same or similar
principles, could reasonably be expected to result in a proposed adjustment or
deficiency for any Taxable Period. The results of any settlement and the
necessary adjustments resulting therefrom are properly reflected in the
Financial Statements.

         (h) Seller is not a party to any tax sharing or similar agreement or
arrangement (whether or not written) relating to allocating or sharing the
payment of, or liability for, Taxes with respect to any Taxable Period.

                                       16
<PAGE>   21

         (i) There is no contract, agreement, plan or arrangement covering any
person that, individually or collectively, or when taken together with any
payment that may be made under this Agreement or any agreements contemplated
hereby, could give rise to the payment of any "excess parachute payment" within
the meaning of Section 280G of the Code.

         (j) There are no security interests on any of the Assets that arose in
connection with any failure (or alleged failure) to pay any Taxes and, except
for liens for real and personal property Taxes not yet due and payable, there
are no liens for any Tax upon any Asset. None of the Assets is or could be
treated as (i) an equity interest in a corporation (or an entity treated as a
corporation for U.S. federal income tax purposes), (ii) an interest in a
partnership (or an entity treated as a partnership for U.S. federal income tax
purposes), or (iii) any interest in an entity (e.g., a corporation or a trust)
for U.S. federal income tax purposes.

         (k) Seller has never been a member of any Affiliated Group of
corporations for any Tax purposes. Seller does not have any liability for Taxes
of any person (other than Seller ) under Treasury regulation ss. 1.1502-6 (or
any similar provision of state, local or foreign law), as a transferee or
successor, by contract or otherwise.

         (l) Since the Interim Balance Sheet Date, Seller has not incurred any
liability for Taxes that would result in a material decrease in the net worth of
Seller.

         (m) None of the indebtedness of Seller constitutes "corporate
acquisition indebtedness" (as defined in Section 279(b) of the Code) with
respect to which any interest deductions may be disallowed under Section 279 of
the Code.

         (n) On February 1, 1993, Seller, with the requisite consent of its
stockholders, validly elected to be treated as an S corporation under Section
1362 of the Code (or its predecessor Code provision) and under the corresponding
provisions of applicable state and local laws where it files income Tax Returns,
which election was effective on February 1, 1993 and, except as set forth on
Schedule 3.11(n) for each year of the existence of Seller (and any predecessor
thereof). Seller has provided to the Purchaser evidence of the approval of such
election by the Internal Revenue Service. The Stockholders have furnished
evidence that each of Seller's elections to be treated as an S corporation has
never been terminated or revoked, is currently in effect and will continue to be
in effect through the Closing Date. Seller has no liability for any Taxes under
Section 1374 of the Code in connection with any sale, transfer or exchange of
any of its assets (including, without limitation, any transaction contemplated
hereby).

         Section 3.12 SECTION INTENTIONALLY LEFT BLANK

         Section 3.13 EVENTS SUBSEQUENT TO THE INTERIM BALANCE SHEET DATE Except
as set forth on SCHEDULE 3.13, since the Interim Balance Sheet Date, Seller has
not (a) borrowed any amount or incurred or become subject to any liability
(absolute, accrued or contingent), except current liabilities, liabilities under
contracts entered into, borrowings under banking facilities disclosed in the
Schedules hereto and liabilities in respect of letters of credit issued under
such banking facilities, all of which were in the ordinary course of business;
(b) discharged or satisfied any lien or paid any obligation or liability
(absolute, accrued or contingent) other than current liabilities shown on the
Interim Balance Sheet (including, without limitation, regularly scheduled

                                       17
<PAGE>   22

payments (but not prepayments) of long-term debt) and current liabilities
incurred since the Interim Balance Sheet Date in the ordinary course of
business; (c) failed to pay or discharge when due its liabilities or obligations
except liabilities and obligations being contested in good faith by appropriate
proceedings, which are described on SCHEDULE 3.13; (d) mortgaged, pledged or
subjected to lien any of its assets, tangible or intangible, other than liens of
current real property Taxes not yet due and payable; (e) sold, assigned or
transferred any of its tangible assets except for the sale of inventory in the
ordinary course of business, canceled any debt or claim, or waived any right of
substantial value in the ordinary course of business; (f) sold, assigned,
transferred or granted any license with respect to any Intellectual Property;
(g) suffered any damage or destruction to a material asset, whether or not
covered by insurance; (h) made commitments or agreements for capital
expenditures or capital additions or betterments exceeding in the aggregate
$25,000; (i) received notice or had Knowledge of any actual or threatened labor
trouble, strike or other occurrence, event or condition of any similar character
which has had or could reasonably be expected to result in a Material Adverse
Change on its business, operations, assets, properties, prospects or condition
(financial or otherwise); (j) suffered any Material Adverse Change in its
relations with, or any loss or threatened loss of, any of its suppliers or
customers disclosed pursuant to Section 3.25; (k) (1) granted any severance or
termination pay to any of its directors, officers, employees, independent
contractors or consultants, except in the ordinary course of business; (2)
entered into any employment, deferred compensation or other similar agreement
(or any amendment to any such existing agreement) or arrangement with any of its
directors, officers, employees, independent contractors or consultants, except
in the ordinary course of business consistent with past practice; (3) increased
any benefits payable under any existing severance or termination pay policies or
agreements with directors, officers, employees, independent contractors or
consultants, except in the ordinary course of business consistent with past
practice; (4) increased the compensation, bonus or other benefits payable to any
of its directors, officers, employees, independent contractors or consultants,
except in the ordinary course of business consistent with past practice; or (5)
made any loan to, or entered into any other transaction with, any of its
shareholders, directors, officers, employees, independent contractors or
consultants; (1) made any material change in the manner of its business or
operations; (m) made any material change in any method of accounting or
accounting practice; (n) declared, set aside or paid any dividend or made any
distribution on any shares of its capital stock (whether in cash or in kind), or
redeemed, purchased, or otherwise acquired any shares of its capital stock
except as set forth on the Schedules; (o) entered into any transaction except in
the ordinary course of business or as otherwise contemplated hereby; (p) made or
authorized any change in its charter, by-laws or other organizational documents,
except as set forth in the Schedules; (q) issued any shares of capital stock or
granted any options, warrants or other rights to acquire the same; (r) entered
into or committed to enter into any transactions between or with any affiliate
of Seller or the Stockholders; (s)(1) changed any practice with respect to
Taxes; (2) made, changed or revoked any Tax election; or (3) settled or
compromised any Tax liability; or (t) entered into any commitment (contingent or
otherwise) to do any of the foregoing.

         Section 3.14 CONTRACTS, OBLIGATIONS AND COMMITMENTS Except as set forth
on SCHEDULE 3.14 hereto, Seller is not a party to any existing contract,
obligation or commitment (written or oral) of any nature, including, without
limitation, the following:

                                       18
<PAGE>   23

         (a) Employment, bonus, severance, independent contractor or consulting
agreements, retirement, stock bonus, stock option, or similar plans;

         (b) Loan or other agreements, notes, indentures or instruments relating
to or evidencing indebtedness for borrowed money or mortgaging, pledging,
granting or creating a lien or security interest or other encumbrance on any of
its assets or any agreement or instrument evidencing any guaranty of payment or
performance by any other Person;

         (c) Agreements with any labor union or collective bargaining
organization or other labor agreements;

         (d) Any contract or series of contracts with the same Person for the
furnishing or purchase of equipment, goods or services in excess of $10,000;

         (e) Any joint venture contract or arrangement or other agreement
involving a sharing of profits or expenses;

         (f) Agreements which would, after the Closing Date, limit the freedom
of Purchaser to compete in any line of business or in any geographic area or
with any Person;

         (g) Agreements providing for the disposition of any of its properties
or assets or any shares of its capital stock;

         (h) Any distribution, dealer, representative or sales agency agreement,
contract or commitment;

         (i) Any commitment or agreement for capital expenditures or leasehold
improvements;

         (j) Any license, franchise, distributorship or other agreement which
relates in whole or in part to any Intellectual Property;

         (k) Any contract, commitment or arrangement not made in the ordinary
course of business;

         (l) Agreements with the federal government or any state or local
government or any agency thereof; or

         (m) Any contract, commitment or arrangement or agreement for
indemnification or contribution.

         Each contract, agreement, arrangement, plan, lease, license or similar
instrument to which Seller is a party, (collectively, the "Contracts"), (i) is a
valid and binding obligation of Seller and, to the Knowledge of Seller, the
other parties thereto, enforceable in accordance with its terms (except as the
enforceability thereof may be limited by any applicable bankruptcy, insolvency
or other laws affecting creditors' rights generally or by general principles of
equity, regardless of whether such enforceability is considered in equity or at
law), and is in full force and effect, and, subject to obtaining all requisite
consents to assignment from the other parties (which are listed on Schedule
3.14(b)) will continue to be so legal, valid, binding, enforceable and in full
force

                                       19
<PAGE>   24

and effect following the Closing Date and (ii) neither Seller, nor to the
Knowledge of Seller, any other party thereto is in breach or default, and no
event has occurred which would constitute (with or without notice or lapse of
time or both) a breach or default (or give rise to any right of termination,
modification, cancellation or acceleration) or loss of material benefits under
any such contract, except for breaches or defaults which would not result in a
Material Adverse Change. Seller has made all payments and performed all
obligations required to be paid or performed on or before the date of this
Agreement and otherwise complied with the provisions of all of the Contracts.
None of the Stockholders or Seller has received notice of default, defense,
offset, counterclaim, termination or acceleration with respect to any of the
Contracts. To the Knowledge of Seller, no Contract contains any contractual
business requirement with which there is a reasonable likelihood that Seller
will be unable to comply. Each Contract (other than those which expire in
accordance with the terms thereof) will continue to be legal, valid, binding,
enforceable and in full force and effect on identical terms immediately
following the consummation of the transactions contemplated hereby. The
Contracts comprise all of the leases, rental and occupancy agreements,
contracts, agreements, plans and commitments required in order to conduct the
Business as it has been and is now conducted. Seller has duly exercised all
rights and options to renew or extend the expiration date of all leases, rental
and occupancy agreements included in the Contracts, to the extent any such right
or option would expire prior to the Closing Date or within 60 days thereafter.
None of the Contracts contain(s) any present or future restriction on
Purchaser's right to conduct the Business presently conducted by Seller.

         Section 3.15 LITIGATION Except as set forth on SCHEDULE 3.15, neither
Seller or any Affiliate of Seller, nor any of their respective directors,
officers, employees or agents (in their capacity as such) is a party to any
pending or, to the Knowledge of Seller, threatened, claim, action, suit,
proceeding or investigation, at law or in equity or otherwise in, before or by
any court or governmental board, commission, agency, department or office, or
private arbitration tribunal, including, without limitation, any claim, action,
suit, proceeding or investigation (a) arising in connection with the conduct of
the Business by Seller, (b) to restrain, prohibit or invalidate, or to obtain
damages or other relief from Seller or any of its Affiliates, or its directors
or officers, or equitable or other relief in respect of this Agreement or the
transactions contemplated hereby, (c) which arises out of any contract,
agreement, letter of intent or arrangement alleged to have been entered into or
agreed to by the Stockholders or Seller and which conflicts with this Agreement
or the transactions contemplated hereby, or gives rise to a claim or right of
any kind of any Person as a result of the execution of this Agreement or the
consummation of the transactions contemplated hereby, (d) which, if successful,
could adversely affect the right of Purchaser or any successor-in-interest after
the Closing Date to own the Contributed Assets or to conduct the Business, or
(e) to suspend, revoke, annul, limit, terminate, amend or modify any Permit
(collectively, "Litigation"). Neither Seller nor either of the Stockholders is a
party or is subject to any order, ruling, judgment, decree or stipulation which
affects the Business or which would prevent the transactions contemplated by
this Agreement.

         Section 3.16 COMPLIANCE WITH LAW The Seller has been and is in
compliance with all applicable laws, rules, regulations, ordinances, codes,
standards and court or administrative orders and processes (including, without
limitation, any that relate to transportation, zoning, communications, consumer
protection, health and safety, products and services, proprietary rights,
anti-competitive practices, collective bargaining, ERISA, equal opportunity, the
Fair Labor Standards Act and improper payments). Except as set forth on SCHEDULE
3.16, Seller has

                                       20
<PAGE>   25

not received any written notice from any governmental authority, and to the
Knowledge of Seller, none is threatened, alleging that Seller (i) is being
investigated or (ii) or has violated, or not complied with, any of the above.

         Section 3.17 LICENSES; REGISTRATIONS; PERMITS; ETC Seller and each of
its managers, officers, directors, employees and independent contractors possess
all governmental registrations, licenses, permits, authorizations, consents and
approvals (collectively referred to herein as "Permits") necessary to operate
the Business as currently conducted, which necessary Permits are set forth on
SCHEDULE 3.17. All such Permits are in full force and effect and no such party
is in default under any of such Permits and no event has occurred and no
condition exists which, with the giving of notice, the passage of time, or both,
would constitute a default thereunder. True and correct copies of the Permits
(including, without limitation, Environmental Permits) issued most recently by
the applicable authorities with respect to the operation of the business of
Seller have been made available to Purchaser prior to the date hereof. Neither
of the Stockholders nor Seller has received written or verbal notice of any
action or proceeding which has been initiated or is proposed to be initiated by
any Governmental Body having jurisdiction thereof, to either revoke, withdraw or
suspend any of the Permits (including, without limitation, Environmental
Permits) or any judicial or administrative agency judgment or decision not to
renew any of the Permits (including, without limitation, Environmental Permits)
or any licensure or certification action of any other type.

         Section 3.18 BROKERS Following the Closing Date, Purchaser will not be
subject to any claim for any fee or commission to any broker, finder, investment
banker or other intermediary in connection with the transactions contemplated by
this Agreement or in connection with any contract, agreement, letter of intent
or arrangement described in Section 3.15(c) hereof based on any arrangement or
agreement made by or on behalf of the Stockholders, Seller or any of Seller's
Affiliates, and the Stockholders will hold Purchaser harmless from any such
claim, demand or liability.

         Section 3.19 INTELLECTUAL PROPERTY SCHEDULE 3.19 contains a true and
complete list of all patents, trademarks and service marks (either registered,
common law or registration applied for), trade names, registered copyrights and
third party licenses which are owned, used, registered in the name of or
licensed by Seller, or in which Seller otherwise has an interest, together with
a brief statement as to any filing, registration or issuance thereof, as to any
licenses, sublicenses, covenants or agreements entered into or granted by or to
Seller with respect thereto and as to any pending or, to the Knowledge of
Seller, threatened disputes or adverse claims with respect thereto. Seller is
the exclusive owner of all items listed on such Schedule. Seller owns or is
licensed or otherwise has the right to use (without the payment by Seller of any
royalty, except as disclosed on SCHEDULE 3.19, and otherwise on commercially
reasonable terms) all the Intellectual Property necessary to carry on the
Business as currently conducted. All licenses, if any, of Seller to use
Intellectual Property necessary to carry on the Business as currently conducted
are in full force and effect and neither Seller nor, to the best of the
Knowledge of Seller, any of the other parties to such licenses is in breach of
any provision of, or in default under any of the terms of, such licenses. Seller
has not granted any Person any license or other right to use any of the
Intellectual Property necessary to carry on the Business as currently conducted,
whether requiring the payment of royalties or not. Seller has not and does not
infringe upon or unlawfully or wrongfully uses any Intellectual Property owned
or claimed

                                       21
<PAGE>   26

by another, and to the Knowledge of Seller, no Person is infringing upon, or is
in violation of, any Intellectual Property or rights thereto of Seller.
Subsequent to the Closing Date, no current or former director, officer,
stockholder or employee of Seller shall own, have an interest in or have the
right to use any Intellectual Property which is being, or was at any time
(except as disclosed on SCHEDULE 3.19), utilized in the Business. There is no
pending or, to the best of the Knowledge of Seller, threatened claim or
litigation against contesting its right to use Intellectual Property, asserting
the misappropriation or misuse of any Intellectual Property or asserting that
Seller has violated or infringed the Intellectual Property of another party.
This Agreement and the consummation of the transactions contemplated hereby will
not in any manner affect the Purchaser's rights after the Closing Date with
respect to, or its ability to use, the Intellectual Property necessary to carry
on the Business as currently conducted on identical terms and conditions
immediately subsequent to the Closing Date. Seller has not conducted business
under any corporate, trade or fictitious name other than the names listed on
SCHEDULE 3.19 hereto.

         Section 3.20 INSURANCE SCHEDULE 3.20 sets forth all insurance
agreements and policies maintained by Seller or under which Seller is listed as
a beneficiary or additional insured (including any self-insurance arrangements)
and the type and amounts of coverage thereunder, which coverage reflects all
insurance which is required by Law or any agreement to which the Seller is a
party, true, correct and complete copies of which have been made available to
Purchaser. During the past three years, Seller has not been refused insurance,
nor has its coverage been limited, nor has any claim in excess of $25,000 been
made in respect of any such insurance. All of such policies, agreements and
arrangements are in full force and effect, Seller is not delinquent with respect
to any premium payments thereon, no notice of cancellation has been received,
and there is no existing default or event which, with the giving of notice or
lapse of time or both, would constitute a default thereunder. Seller maintains
the type and amount of insurance which is adequate to protect it and its
financial condition against the risks involved in the conduct of the Business.
SCHEDULE 3.20 sets forth a description of all performance bonds and letters of
credit which are required by law or any agreement, contract or commitment,
including the Contracts, to be maintained or entered into by Seller, all of
which are in full force and effect and comply with the requirements of
applicable law, contract or commitment. Except as set forth in SCHEDULE 3.20,
Seller has never been denied coverage by any insurance carrier, and Seller has
carried all insurance coverage which may be required by the laws of the states
in which the Business is conducted or by any agreement to which Seller is a
party, and in such amounts and with such deductibles as are customary for other
companies engaged in similar lines of business.

         Section 3.21 PLANS AND AGREEMENTS RELATING TO EMPLOYEES

         (a) SCHEDULE 3.21(a) lists each of the following plans, contracts,
policies and arrangements which is or, within six years prior to the Closing
Date, was sponsored, maintained or contributed to by, or otherwise binding upon
Seller or, in the case of an "employee pension plan" (as defined in Section 3(2)
of ERISA), an ERISA Affiliate for the benefit of any current or former employee,
director or other personnel (including any such plan, contract, policy or
arrangement approved or adopted before, but effective on or after, the date of
this Agreement): (i) any "employee benefit plan," as such term is defined in
Section 3(3) of ERISA, whether or not subject to the provisions of ERISA, (ii)
any personnel policy, and (iii) any other employment, consulting, collective
bargaining, stock option, stock bonus, stock purchase, phantom stock,

                                       22
<PAGE>   27

incentive, bonus, deferred compensation, retirement, severance, vacation,
dependent care, employee assistance, fringe benefit, medical, dental, sick
leave, death benefit, golden parachute or other compensatory plan, contract,
policy or arrangement which is not an employee benefit plan as defined in
Section 3(3) of ERISA (each such plan, contract, policy and arrangement
described in (i), (ii) or (iii) above being herein referred to as an "Employee
Plan").

         (b) With respect to each Employee Plan, the Stockholders and Seller
have made available to Purchaser true and complete copies of (1) each contract,
plan document, policy statement, summary plan description and other written
material governing or describing the Employee Plan and/or any related funding
arrangements (including, without limitation, any related trust agreement or
insurance company contract) or, if there are no such written materials, a
summary description of the Employee Plan; and (2), where applicable, (A) the
last two annual reports (5500 series) filed with the Internal Revenue Service or
the Department of Labor; (B) the most recent balance sheet and financial
statement; (C) the most recent actuarial report or valuation statement; and (D)
the most recent determination letter issued by the Internal Revenue Service, as
well as any other determination letter, private letter ruling, opinion letter or
prohibited transaction exemption issued by the Internal Revenue Service or the
Department of Labor within the last six years and any application therefor which
is currently pending.

         (c) Each Employee Plan has been maintained and administered in
accordance with its terms and in compliance with the provisions of applicable
law, including, without limitation, applicable disclosure, reporting, funding
and fiduciary requirements imposed by ERISA and/or the Code. All contributions,
insurance premiums, benefits and other payments required to be made to or under
each Employee Plan have been made timely and in accordance with the governing
documents and applicable law. With respect to each Employee Plan, (1) no
application, proceeding or other matter is pending before the Internal Revenue
Service, the Department of Labor or any other governmental agency; (2) no
action, suit, proceeding or claim (other than routine claims for benefits) is
pending or, to the Knowledge of Seller, threatened; and (3) to the Knowledge of
the Stockholders and Seller, no facts exist which could give rise to an action,
suit, proceeding or claim which, if asserted, could result in a material
liability or expense to Seller or the plan assets.

         (d) Neither Seller nor any ERISA Affiliate has or any time in the past
has had any liability, contingent or otherwise, under Title IV of ERISA or
Section 412 of the Code, or an obligation to contribute to a "multiemployer
plan" (as defined in Section 3(37) of ERISA).

         (e) No Employee Plan that is an "employee welfare benefit plan" under
Section 3(1) of ERISA is partially or fully funded through a trust. Seller and
its ERISA Affiliates have complied in all respects with the provisions of
Section 4980B of the Code with respect to any Employee Plan which is a group
health plan within the meaning of Section 5001(b)(1) of the Code. Seller does
not maintain, contribute to, or have an obligation under any plan, contract,
policy or arrangement providing health or death benefits (whether or not
insured) to current or former employees or other personnel beyond the
termination of their employment or other services.

         (f) The consummation of the transactions contemplated by this Agreement
will not (either alone or in conjunction with another event, such as a
termination of employment or other services) entitle any employee or other
person to receive severance or other compensation which

                                       23
<PAGE>   28

would not otherwise be payable absent the consummation of the transactions
contemplated by this Agreement or cause the acceleration of the time of payment
or vesting of any award or entitlement under any Employee Plan.

         (g) SCHEDULE 3.21(g) sets forth a complete and accurate list showing
the names, the rate of compensation (and the portions thereof attributable to
salary and bonuses, respectively) and location of all current officers,
employees and independent contractors of and consultants to Seller that
received, for the year ended December 31, 1998, or are expected to receive,
during the year ending December 31, 1999, annual base salary or other
compensation in excess of $25,000. There are no covenants, agreements or
restrictions to which Seller is a party or bound, including, but not limited to,
employee non-compete agreements, prohibiting, limiting or in any way restricting
any officer or employee listed on SCHEDULE 3.21(g) from engaging in any type of
business activity in any location. To the Knowledge of Seller, no officer or
employee listed on SCHEDULE 3.21(g) has any plans to terminate their employment.
There has not been, and the Stockholders do not anticipate, any adverse change
in relations with employees as a result of the announcement of the transactions
contemplated by this Agreement. Seller has not instituted any "freeze" of, or
delayed or deferred the grant of, any cost-of-living or other salary adjustments
for any of its employees, independent contractors or consultants.

         (h) SCHEDULE 3.21(h) sets forth by number and employment classification
the approximate numbers of employees, independent contractors, leased employees
and consultants of Seller as of the date of this Agreement, including any
collective bargaining or labor contracts to which Seller is a party and which is
applicable to persons employed by Seller, and, except as set forth therein, none
of said individuals are subject to union or collective bargaining agreements.
There has been no audit, action, suit, proceeding or claim relating to the
employment classification of the employees, independent contractors, leased
employees, and consultants of Seller and to the knowledge of Seller, no basis
for such audit, action, suit, proceeding or claim exists. Seller has properly
classified each employee, independent contractor, leased employee and consultant
for purposes of the Employee Plans and for any required employment or
withholding taxes. There have been no audits of the equal employment opportunity
practices of Seller and, to the Knowledge of Seller, no basis for such an audit
exists. Except as set forth on SCHEDULE 3.21(h), there is no pending or, to the
Knowledge of Seller, threatened union organizational effort, material labor
dispute, strike or work stoppage against Seller. Neither Seller, nor its
representatives or employees, has committed any unfair labor practices in
connection with the operation of the business of Seller, and, except as set
forth on SCHEDULE 3.21(h), there is no pending or, to the Knowledge of Seller,
threatened charge, complaint or investigation against or involving Seller by the
National Labor Relations Board, the Fair Labor Standards Board or any similar
governmental agency. Seller has in the past been and is in compliance in all
respects with all applicable collective bargaining agreements and laws
respecting employment, employment practices, employment discrimination, labor
relations, safety and health, wages, hours and terms and conditions of
employment. Seller has not experienced within the past 12 months a "plant
closing" or "mass layoff" within the meaning of the Worker Adjustment and
Retraining Notification Act, 29 U.S.C. ss.ss. 2101 et seq.

         Section 3.22 NO ILLEGAL OR IMPROPER TRANSACTIONS Neither Seller nor any
stockholder, officer, director, employee, agent or Affiliate of any of them has
offered, paid or agreed to pay to any Person (including any governmental
official) or solicited, received or agreed to receive from

                                       24
<PAGE>   29

any Person, directly or indirectly, any money or thing of value for the purpose
or with the intent of (a) obtaining or maintaining business for Seller, (b)
facilitating the purchase or sale of any product or service, or (c) avoiding the
imposition of any fine or penalty, in any such case in any manner which is in
violation of any applicable ordinance, regulation or law; and there have been no
false or fictitious entries made in the books or records of Seller.

         Section 3.23 RELATED TRANSACTIONS Except as set forth on SCHEDULE 3.23,
no current or former director, officer, employee, independent contractor,
consultant or Affiliate of Seller, or any relative of either of the Stockholders
is presently, or during the last three fiscal years has been, (a) a party to any
transaction with Seller (including, but not limited to, any contract, agreement
or other arrangement providing for the furnishing of services by, or rental of
real or personal property from, or otherwise requiring payments to, any such
director, officer, employee, independent contractor, consultant, Affiliate or
relative), or (b) the direct or indirect owner of an interest in any
corporation, firm, association or business organization which is a present (or
potential) competitor, supplier or customer of Seller.

         Section 3.24 NO PRODUCT LIABILITIES; PRODUCT WARRANTIES

         (a) Except as set forth on SCHEDULE 3.24, Seller has not, since January
1, 1995, incurred, nor does Seller or the Stockholders have Knowledge of, or
have any reason to believe there is any basis for alleging, any liability,
damage, loss, cost or expense as a result of any defect or other deficiency
(whether of design, materials, installation, workmanship, labeling, instructions
or otherwise) ("Product Liability") with respect to any product sold or service
rendered by Seller, whether such Product Liability is incurred by reason of any
express or implied warranty (including, without limitation, any warranty of
merchantability or fitness), any doctrine of common law (tort, contract or
other), any statutory provision or otherwise and irrespective of whether such
Product Liability is covered by insurance.

         (b) The Stockholders have furnished Purchaser with all forms of
warranties or guarantees of products and services that are in effect or proposed
to be used by Seller. There are no pending or, to the Knowledge of Seller,
threatened claims against Seller under any warranty or guaranty. SCHEDULE 3.24
lists all payments or settlements made in respect of any such warranty or
guaranty since January 1, 1996, indicating the name of each customer, the amount
of each payment and a brief description of the facts relating thereto.

         Section 3.25 SUPPLIERS AND CUSTOMERS

         (a) SCHEDULE 3.25 lists (i) all suppliers to which Seller made payments
during the year ended December 31, 1998, or to which Seller expects to make
payments during the year ending December 31,1999, in excess of five percent (5%)
of the cost of sales as reflected on Seller's statement of operations for the
year ended December 31, 1998 and (ii) all customers that paid Seller during the
year ended December 31, 1998 or that the Stockholders expect will pay to Seller
during the year ending December 31, 1999, more than five percent (5%) of
Seller's sales revenues as reflected on its statement of operations for the year
ended December 31, 1998 ("Customers").

                                       25
<PAGE>   30

         (b) None of the customers or suppliers listed on SCHEDULE 3.25 has
terminated or discontinued their business with Seller and Seller has no
Knowledge which might reasonably indicate that any of the customers or suppliers
listed on SCHEDULE 3.25 intend to cease purchasing from, selling to, or dealing
with, Seller, nor has any information been brought to the Stockholders'
attention which might reasonably lead them to believe any such customer or
supplier intends to alter in any material respect the amount of such purchases,
sales or the extent of dealings with Seller or would alter in any material
respect such purchases, sales or dealings in the event of the consummation of
the transactions contemplated by this Agreement. Seller has no Knowledge which
might reasonably indicate, nor has any information been brought to the
Stockholders' attention which might reasonably lead them to believe that, (i)
any supplier will not be able to fulfill outstanding or currently anticipated
purchase orders placed by Seller, or (ii) any customer will cancel outstanding
or currently anticipated purchase orders placed with Seller.

         Section 3.26 POWERS OF ATTORNEY There are no outstanding powers of
attorney executed on behalf of Seller.

         Section 3.27 AVAILABILITY OF DOCUMENTS The Stockholders have made
available to Purchaser copies of all documents, including, without limitation,
all agreements, Contracts, commitments, insurance policies, leases, plans,
instruments, undertakings, authorizations, Permits and Intellectual Property
listed in the Schedules hereto or referred to herein. Such copies are true and
complete and include all amendments, supplements and modifications thereto or
waivers currently in effect thereunder.

         Section 3.28 CORPORATE RECORDS The corporate record books of each of
Seller completely and accurately record all material corporate action taken by
the shareholders and boards of directors and committees thereof.

         Section 3.29 ORDINARY COURSE Since December 31, 1998, except as set
forth in SCHEDULE 3.29, Seller has conducted its business only in the ordinary
course and consistently with its prior practices.

         Section 3.30 EQUIPMENT As of the date hereof and on the Closing Date,
all equipment owned or leased by Seller and used in connection with the
operation of the Business shall be in good condition and working order, subject
to such routine maintenance and repairs thereto as may be required in the
ordinary course of the business of Seller, except as would not have,
individually or in the aggregate, a Material Adverse Change on the Business.

         Section 3.31 DISCLOSURE No information furnished by or on behalf of
either of the Stockholders or Seller to Purchaser contains any untrue statement
of a material fact or omits to state any fact necessary to make the information
disclosed not misleading.

         Section 3.32 CONSENTS; APPROVALS Each of the Stockholders and Seller
agrees to use all reasonable efforts to take, or cause to be taken, all actions,
and to do, or cause to be done, all things necessary to obtain any requisite
approvals, consents, orders, exemptions or waivers by any third party or
Governmental Body in connection with this Agreement. Each of the Stockholders
and Seller further agrees that if any required consent to the purchase of the
Assets

                                       26
<PAGE>   31

by Purchaser as provided for herein is not obtained prior to the Closing Date,
each of the Stockholders and Seller shall exercise efforts to arrange for
Purchaser to acquire all of the material benefits of the Assets as though the
required consents had been obtained and shall continue to use all efforts to
obtain such consents. Nothing in this Section 3.32 shall (i) affect Seller's
other rights under this Agreement or (ii) require either Stockholder or the
Seller to pay money or other consideration to any third party in violation of
applicable law or regulation.

         Section 3.33 INVESTMENT REPRESENTATION. Stockholders are acquiring the
Parent Shares for investment and not with a view toward, or for sale in
connection with, any public distribution thereof, nor with any intention of
distributing or selling the Parent Shares in violation of the federal securities
laws. Stockholders agrees that neither the Parent Shares nor any interest
therein may be offered, sold, transferred, pledged, hypothecated or otherwise
disposed of except pursuant to (i) an effective registration statement under the
Securities Act of 1933, as amended, and the rules and regulations of the
Securities and Exchange Commission thereunder (the "Securities Act") and any
applicable state securities laws or (ii) an exemption from the registration
requirements of the Securities Act and any applicable state securities laws,
such exemption to be evidenced by such documentation as Parent may reasonably
request, including an opinion of counsel (which counsel and opinion shall be
reasonably satisfactory to Parent) that such transfer is not in violation of the
Securities Act and any applicable state laws. Each Stockholder is an "accredited
investor" as such term is defined in Rule 501 of the Securities Act.

                                   ARTICLE IV
             REPRESENTATIONS AND WARRANTIES OF PURCHASER AND PARENT

         The Purchaser and Parent, jointly and severally, represent and warrant
as follows on and as of the date hereof:

         Section 4.1 AUTHORITY RELATIVE TO THIS AGREEMENT Each of the Parent and
the Purchaser has full corporate power and authority to execute and deliver this
Agreement and to consummate the transactions contemplated by this Agreement. The
execution and delivery of this Agreement by each of Parent and the Purchaser and
the consummation by each of Parent and the Purchaser of the transactions
contemplated by this Agreement have been duly and validly authorized by the
Board of Directors of Parent and the sole stockholder of the Purchaser and no
other corporate proceedings on the part of the Parent and the Purchaser are
necessary to authorize this Agreement or to consummate the transactions
contemplated by this Agreement. This Agreement has been duly and validly
executed and delivered by each of Parent and the Purchaser and constitutes the
valid and binding agreement of Parent and the Purchaser, enforceable against
Parent and the Purchaser in accordance with its terms.

         Section 4.2 ORGANIZATION The Parent is a corporation and the Purchaser
is a corporation, in each case duly organized, validly existing and in good
standing under the laws of the jurisdiction of its incorporation and has all
requisite corporate power and authority to own, lease and operate its properties
and to conduct its business as now being conducted.

                                       27
<PAGE>   32

                                   ARTICLE V
                                   CONDITIONS

         Purchaser's obligation to purchase and pay for the Assets on the
Closing Date is subject to the satisfaction, on or before the Closing Date, of
the following conditions:

         Section 5.1 REPRESENTATIONS AND WARRANTIES TRUE The representations and
warranties of the Stockholders and Seller in this Agreement shall be true and
correct in all respects as of the date hereof and at and as of the Closing Date
with the same effect as though such representations and warranties had been made
at and as of such time, other than representations and warranties that speak as
of another specific date or time prior to the date hereof (which need only be
true and correct as of such date or time).

         Section 5.2 PERFORMANCE Each of the Stockholders and Seller shall have
performed all obligations required to be performed by them under this Agreement
at or prior to the Closing Date.

         Section 5.3 CERTIFICATE Parent shall have received a certificate, dated
the Closing Date, signed by each of the Stockholders and Seller to the effect
that the conditions set forth in Sections 5.1 and 5.2 have been satisfied.

         Section 5.4 NO MATERIAL ADVERSE CHANGE There shall not have occurred
any events that have had or are reasonably likely to have a Material Adverse
Change.

         Section 5.5 CONSENTS AND APPROVALS All consents or approvals listed on
Schedules 3.14 and 3.17 to this Agreement shall have been obtained and any other
consents or approvals, the absence of which would have a Material Adverse
Change, shall have been obtained.

         Section 5.6 OPINION OF COUNSEL FOR THE STOCKHOLDERS AND SELLER Parent
shall have received from Woodson L. Herring, Esq., counsel to the Stockholders
and Seller, a written opinion, dated the Closing Date, substantially in the form
attached hereto as EXHIBIT 5.6.

         Section 5.7 LEGAL PROHIBITION On the Closing Date, no injunction,
decree or order shall be in effect prohibiting consummation of the transactions
contemplated hereby or which would make the consummation of such transactions
unlawful and no action, suit or proceeding shall have been instituted and remain
pending before a court, governmental body or regulatory authority to restrain or
prohibit the transactions contemplated by this Agreement and no adverse decision
shall have been made by any such court, governmental body or regulatory
authority which constitutes, or could be reasonably anticipated to constitute, a
Material Adverse Change. Between the date hereof and the Closing Date, no
federal, state or local statute, rule or regulation shall have been enacted or
deemed applicable by any government or governmental or administrative agency or
court the effect of which would be to prohibit, restrict, impair or delay the
consummation of the transactions contemplated hereby or restrict or impair the
ability of Purchaser to own the Assets.

         Section 5.8 CONSENTS, PERMITS, LICENSES ETC All authorizations,
consents, waivers, approvals, orders, registrations, qualifications,
designations, declarations, filings or other action required with or from any
Governmental Body or other regulatory authority or third party

                                       28
<PAGE>   33

(including, without limitation, all parties to each of the Contracts) in
connection with the execution, delivery and performance of this Agreement, the
consummation of the transactions contemplated hereby and the ownership by
Purchaser of the Assets shall have been duly obtained and shall be satisfactory
to Purchaser and its counsel, and copies thereof shall be delivered to Purchaser
at or prior to the Closing Date.

         Section 5.9 CLOSING MATTERS All actions to be taken by the Stockholders
or Seller in connection with the consummation of the transactions contemplated
hereby and all certificates, opinions, instruments and other documents required
to effect the transactions contemplated hereby shall be satisfactory in form and
substance to Purchaser and its counsel.

         Section 5.10 CLOSING CERTIFICATES Parent shall have received
certificates dated the Closing Date in form and substance reasonably
satisfactory to it from the Secretary or Assistant Secretary of Seller
certifying (i) that attached to such certificate are true, correct and complete
copies of the resolutions duly adopted by the Board of Directors of Seller
authorizing the transactions contemplated by this Agreement which remain in full
force and effect, (ii) that attached to such certificate are true, correct and
complete copies of the certificates or articles of incorporation and by-laws of
Seller, each as amended, to the Closing Date, and (iii) as to the incumbency of
each officer of Seller executing this Agreement and all documents and
instruments executed in connection therewith on behalf of Seller.

         Section 5.11 EMPLOYMENT AND NON-COMPETITION AGREEMENTS Bruce A. Nassau
shall have delivered an executed employment agreement to Parent on the Closing
Date in the form of Exhibit 5.11.

         Section 5.12 GOOD STANDING CERTIFICATE Parent shall have received an
original or telefacsimile certificate of good standing of Seller issued by the
Secretary of State of the State of Colorado dated as of the Closing Date and a
certificate of good standing as a foreign corporation from each state in which
Seller conducts business.

         Section 5.13 FINANCING All conditions precedent referred to in the
commitment letter from General Electric Capital Corporation to Parent (or an
Affiliate thereof) shall have been satisfied and the Parent shall have received
the financing contemplated thereunder.

         Section 5.14 CERTIFICATION OF NON-FOREIGN STATUS On or prior to the
Closing Date, the Seller shall have delivered to the Purchaser, pursuant to
Section 1445(b)(2) of the Code and Treas. Reg. ss. 1.1445-2(b)(2), a duly
executed certification of non-foreign status. Such certification shall conform
to the model certification provided in Treas. Reg. ss. 1.1445-2(b)(2)(iii)(B).

         Section 5.15 BILL OF SALE On the Closing Date, Seller and the
Stockholders shall have delivered to Purchaser a duly executed bill of sale for
the Assets substantially in the form of Exhibit A hereto.

         Section 5.16 ESCROW AGREEMENT On or prior to the Closing Date, Seller,
the Stockholders, Parent, Purchaser and an escrow agent shall have entered into
an escrow agreement substantially in the form of Exhibit B hereto and delivered
to the Escrow Agent of stock certificate for 100,000 shares of Common Stock of
Parent.

                                       29
<PAGE>   34

         Section 5.17 AMENDED AND RESTATED STOCKHOLDERS AGREEMENT OF PARENT On
or prior to the Closing Date, each Stockholder shall have become a party to the
Amended and Restated Stockholders Agreement of Parent substantially in the form
of Exhibit D hereto.

         Section 5.18 DISCLOSURE SCHEDULE (i) On or prior to August 1, 1999,
Seller shall have delivered to the Purchaser the Disclosure Schedule, to which
Purchaser shall be entitled to object for a period of 5 Business Days following
the receipt thereof and (ii) on or prior to the Closing Date, Seller shall have
delivered to the Purchaser the final Disclosure Schedule which schedule shall be
acceptable to Purchaser in Purchaser's sole discretion.

                                   ARTICLE VI
                                 INDEMNIFICATION

         Section 6.1 SURVIVAL OF REPRESENTATIONS, WARRANTIES, COVENANTS AND
AGREEMENTS All representations, warranties, covenants and agreements contained
in this Agreement and the right of indemnification with respect to breaches
thereof shall survive the execution of this Agreement, regardless of any
investigation made by Purchaser, on the one hand, or the Stockholders or Seller,
on the other hand, or on any of their behalves, and shall remain in full force
and effect as follows: (a) all representations and warranties and the right of
indemnification with respect to breaches thereof set forth in Sections 3.6, 3.9,
3.11, 3.14, 3.15, 3.16, 3.18, 3.19, 3.21, 3.32 and 3.33 of this Agreement shall
remain in full force and effect until 6 months following the expiration of the
applicable statute of limitations (including any extension thereof), except as
to any matters with respect to which a claim shall have been made pursuant to
Section 6.5 of this Agreement before such date, in which event survival shall
continue (but only with respect to, and to the extent of, such claim) until the
final resolution of such claim, including all applicable periods for appeal; (b)
all representations and warranties and the right of indemnification with respect
to breaches thereof set forth in Sections 3.8, 3.13, 3.17, 3.20, 3.23, 3.24,
3.25, 3.29 and 3.30 of this Agreement shall remain in full force and effect
until 3 years following the Closing Date, except as to any matters with respect
to which a claim shall have been made pursuant to Section 6.5 of this Agreement
before such date, in which event survival shall continue (but only with respect
to, and to the extent of, such claim) until the final resolution of such claim,
including all applicable periods for appeal; (c) all representations and
warranties and the right of indemnification with respect to breaches thereof set
forth in Sections 3.10, 3.22, 3.26, 3.27 and 3.31 of this Agreement shall remain
in full force and effect until 6 years following the Closing Date, except as to
any matters with respect to which a claim shall have been made pursuant to
Section 6.5 of this Agreement before such date, in which event survival shall
continue (but only with respect to, and to the extent of, such claim) until the
final resolution of such claim, including all applicable periods for appeal; (d)
all representations, warranties, covenants and agreements and the right of
indemnification with respect to breaches thereof set forth in Sections 3.1, 3.3,
3.4, 3.7 and 3.28 shall survive forever (subject to any applicable statute of
limitations and any extension thereof), except as to any matters with respect to
which a claim shall have been made pursuant to Section 6.5 of this Agreement
before such date, in which event survival shall continue (but only with respect
to, and to the extent of, such claim) until the final resolution of such claim,
including all applicable periods for appeal and (e) the indemnification set
forth in Section 6.3 shall survive forever (notwithstanding any applicable
statute of limitations and any extension thereof). The indemnification
obligations provided under this Article VI shall be the exclusive remedy of each
party thereto for the recovery of

                                       30
<PAGE>   35

money damages with respect to the matters described herein; provided that, (i)
any party hereto shall be entitled to an injunction or other equitable relief to
prevent breaches of this Agreement, to enforce specifically the terms and
provisions of this Agreement or to seek any other remedy to which they are
entitled in equity, (ii) nothing herein shall preclude a party from bringing an
action for fraud, and (iii) nothing herein shall limit any party's right of
setoff.

         Section 6.2 THE STOCKHOLDERS' AND SELLER'S INDEMNITY Each of the
Stockholders and Seller, jointly and severally, shall indemnify and hold
harmless Parent, Purchaser, each of its respective directors, officers,
partners, agents, shareholders, employees, Affiliates, successors and assigns
(collectively, the "RTK Indemnified Parties") at all times against and in
respect of any damage, loss, cost (including, without limitation, Environmental
Remediation Costs), expense, Tax, liability or obligation (including amounts
paid in investigation or settlement and reasonable attorneys' fees) direct or
indirect, known or unknown, foreseeable or unforeseeable, resulting to any of
them from or in connection with:

         (a) any false, misleading or inaccurate representation, breach of
warranty or nonfulfillment of any agreement, covenant or condition on the part
of any of the Stockholders or Seller under this Agreement;

         (b) all liabilities of Seller other than Assumed Liabilities;

         (c) any and all Taxes (i) of the Seller, any Stockholder or any
Affiliate of the Seller for any Taxable Period or (ii) whether determined on a
separate, consolidated, combined, group or unitary basis, including any
penalties and interest in respect thereof, of the Seller or any of its
Affiliates (A) pursuant to Treas. Reg. ss.1.1502-6 or any comparable provision
of state, local, or foreign law with respect to any Taxable Period and (B)
pursuant to any guaranty, indemnification, Tax sharing, or similar agreement
relating to the sharing of liability for, or payment of, Taxes;

         (d) liabilities relating to periods prior to the Closing Date with
respect to employment of labor, including, without limitation, with respect to
any labor dispute, unfair labor practice or misclassification of employees,
independent contractors, leased employees or consultants and with respect to any
law relating to wages, hours, discrimination, civil rights, safety and the
collection and payment of withholding and/or social security taxes and similar
taxes;

         (e) any bulk sales law determination that the sale of the Assets
hereunder is ineffective against any creditor of Seller or any taxing authority
asserting any similar claim against Seller, Parent, Purchaser or the Assets; or

         (f) all claims, complaints, actions, suits, proceedings, demands,
assessments, fines, penalties, judgments, orders, costs and expenses incident to
any of the foregoing.

         Section 6.3 THE STOCKHOLDERS' AND SELLER'S ENVIRONMENTAL INDEMNITY
Without limiting the foregoing Section 6.2, and notwithstanding any other
provision of this Agreement, each of the Stockholders and Seller, jointly and
severally, shall indemnify and hold harmless each of the RTK Indemnified Parties
at all times against and in respect of any damage, loss, cost (including,
without limitation, Environmental Remediation Costs), expense, Tax, liability or
obligation (including amounts paid in investigation or settlement and reasonable
attorneys' fees) direct or

                                       31
<PAGE>   36

indirect, known or unknown, foreseeable or unforeseeable, arising under
Environmental Law and resulting to any of them from or in connection with:

         (a) any act or omission occurring on or prior to the Closing Date of
any of the Stockholders, Seller, any of their Affiliates, or any of their
predecessors, including, without limitation, any violation of or noncompliance
with Environmental Laws;

         (b) the ownership, operation, occupation or use by any Person on or
prior to the Closing Date of the Leased Real Property, the Tangible Assets or
any other property or assets owned, leased, operated or otherwise used by the
Stockholders, Seller, any of their Affiliates, or any of their predecessors;

         (c) any Environmental Condition occurring or existing (i) on or prior
to the Closing Date at, on or under any of the Leased Real Property, the
Tangible Assets or any other property or assets owned, leased, operated or
otherwise used by the Stockholders, Seller, any of their Affiliates, or any of
their predecessors or (ii) at any time at, on or under any location at which any
Hazardous Materials have been generated, treated, stored or disposed by or on
behalf of the Stockholders, Seller, any of their Affiliates, or any of their
predecessors on or prior to the Closing Date; and

         (d) all claims, complaints, actions, suits, proceedings, demands,
assessments, fines, penalties, judgments, orders, costs and expenses incident to
any of the foregoing.

         Section 6.4 THE PURCHASER'S INDEMNITY Purchaser shall indemnify and
hold harmless the Stockholders and Seller (collectively "Telecrafter Indemnified
Parties") at all times after the date hereof against and in respect of:

         (a) any damage, loss, cost, expense or liability (including amounts
paid in investigation or settlement and reasonable attorneys' fees) resulting to
any of them from any false, misleading or inaccurate representation, breach of
warranty or nonfulfillment of any agreement, covenant or condition on the part
of Purchaser under this Agreement; and

         (b) all claims, actions, suits, proceedings, demands, assessments,
judgments, costs and expenses incident to any of the foregoing.

         Section 6.5 NOTICE AND DEFENSE OF CLAIMS Each RTK Indemnified Party and
each Telecrafter Indemnified Party entitled to indemnification under this
Article VI (each, an "Indemnified Party") shall give notice to each party
required to provide indemnification (each, an "Indemnifying Party") promptly
after such Indemnified Party has actual knowledge of any claim as to which
indemnity may be sought (which notice shall state the basis of the claim, the
section or sections of this Agreement alleged to have been breached, and, to the
extent feasible, the amount or an estimate of the amount of the claim), and
shall permit the Indemnifying Party, at the Indemnifying Party's expense, to
assume the defense of any such claim or any litigation resulting therefrom,
provided that counsel for the Indemnifying Party, who shall conduct the defense
of such claim or any litigation resulting therefrom, shall be approved by the
Indemnified Party (whose approval shall not unreasonably be withheld), and the
Indemnified Party may participate in such defense at such party's expense; and
PROVIDED, FURTHER, that the failure of any

                                       32
<PAGE>   37

Indemnified Party to give notice as provided herein shall not relieve the
Indemnifying Party of its obligations under this Article VI. The Indemnifying
Party, in the defense of any such claim or litigation, shall not, except with
the written consent of the Indemnified Party, consent to entry of any judgment
or enter into any settlement which does not include as an unconditional term
thereof the giving by the claimant or plaintiff to the Indemnified Party of a
release from all liability in respect of such claim, dispute, proceeding or
litigation; PROVIDED, that, with respect to any claim, dispute, proceeding or
litigation relating to Taxes, the Indemnifying Party shall not consent to entry
of any judgment or enter into any settlement, in either case, of any type
whatsoever, except with the written consent of the Indemnified Party, which
written consent will not be unreasonably withheld. The Indemnified Party shall
furnish such additional information regarding itself or the claim in question as
the Indemnifying Party may reasonably request in writing and as shall be
reasonably required in connection with the defense of such claim and litigation
resulting therefrom.

         Section 6.6 REIMBURSEMENT At the time that the Indemnified Party shall
suffer a loss because of a breach of any warranty, representation, covenant or
agreement by the Indemnifying Party or at the time the amount of any liability
on the part of the Indemnifying Party under this Article VI is determined (which
in the case of payment to third persons shall be the earlier of (i) the date of
such payment or (ii) the date that a court of competent jurisdiction shall enter
a final judgment, order or decree (after exhaustion of appeal rights)
establishing such liability) (such loss or amount being hereinafter referred to
as the "Indemnity Claim"), the Indemnifying Party shall forthwith, upon notice
from the Indemnified Party, pay to the Indemnified Party the amount of the
Indemnity Claim. For purposes hereof, the Indemnity Claim shall include the
amounts so paid, or determined to be owing, by the Indemnified Party together
with costs and reasonable attorneys' fees and interest on the foregoing items at
the rate of seven and one-half percent (7.5%) per annum from the date of notice
that the Indemnity Claim is due from the Indemnifying Party to the Indemnified
Party as hereinabove provided, until the Indemnity Claim shall be paid or set
off.

         In addition to its other obligations under this Section 6.6, each
Indemnifying Party agrees that, as an interim measure during the pendency of any
claim, action, investigation, inquiry or other proceeding for which
indemnification may be required pursuant to this Article VI, it will, if it does
not assume the defense thereof, reimburse the Indemnified Party on a monthly
basis for all reasonable legal fees or other out-of-pocket expenses reasonably
incurred in connection with investigating or defending any such claim, action,
investigation, inquiry or other proceeding, notwithstanding the absence of a
judicial determination as to the propriety and enforceability of the
Indemnifying Party's obligation to indemnify the Indemnified Party for such
expenses and the possibility that such payments might later be held to have been
improper by a court of competent jurisdiction. To the extent that any such
interim reimbursement payment is so held to have been improper, the Indemnified
Party shall promptly return it to the Indemnifying Party, together with interest
at the rate of seven and one-half percent (7.5%) per annum. Any such interim
reimbursement payments which are not made to the Indemnified Party within 30
days of a request for reimbursement shall be subject to set-off as set forth in
the preceding paragraph and shall bear interest at the rate of seven and
one-half percent (7.5%) per annum from the date of such request.

                                       33
<PAGE>   38

         Section 6.7 LIMITATIONS The indemnification obligations with respect to
representations and warranties of the Stockholders and Seller in Article III and
all covenants of the Stockholders and Seller in this Agreement are joint and
several obligations. This means that each of the Stockholders and Seller will be
responsible to the extent provided in this Article VI for the entirety of any
indemnification to which the RTK Indemnified Parties may be entitled under this
Article VI.

         Section 6.8 GROSS-UP If any indemnification payment is determined to be
taxable to the party receiving such payment by any taxing authority, the paying
party shall also indemnify the party receiving such payment for any Taxes
incurred by reason of the receipt or accrual of such payment (taking into
account any actual reduction in tax liability to the receiving party) and any
costs and expenses (including reasonable attorneys' fees) incurred by the party
receiving such payment in connection with such Taxes (or any asserted
deficiency, claim, demand, dispute, action, suit, proceeding, judgment or
assessment, including the defense or settlement thereof, relating to such
Taxes). The amount recoverable by an Indemnified Party shall take into account
the value of any insurance recoveries or actual reduction in Tax liability
realized by such Indemnified Party, and arising from the same incident or set of
facts or circumstances giving rise to the claim for indemnity.

         Section 6.9 RELATION TO ESCROW. Amounts payable to the Purchaser for
indemnification claims under Section 6.2(d) relating to any violation of or
claim under the Fair Labor Standards Act or the rules and regulations thereunder
shall first be paid from the escrow account under the Escrow Agreement or
accounted for via a set off to the principal amount owing under the Note. To the
extent the foregoing is not sufficient to pay such claim, such claim shall be
paid by the Indemnifying Parties.

                                  ARTICLE VII
                                    COVENANTS

         Section 7.1 CONDUCT AND PRESERVATION OF BUSINESS. Seller and each of
the Stockholders covenant that, except as contemplated by this Agreement, during
the period from the date of this Agreement to the Closing Date, Seller shall (i)
conduct its business in the usual manner and not enter into any transactions
outside the ordinary course of business; (ii) use its best efforts to maintain,
preserve and protect its properties and assets and the Business, including,
without limitation, to preserve its relationship with its employees, independent
contractors, suppliers and customers and to preserve its goodwill; (iii) comply
with all laws, ordinances, rules, regulations and orders applicable to its
business; (iv) not cause or permit to occur any of the events or occurrences
described in Section 3.13 (except as set forth on the Disclosure Schedule); (v)
continue to maintain and service the physical assets used in the conduct of the
Business in the same manner as has been its consistent past practice; (vi) not
declare, set aside or pay any dividend or make any distribution on any shares of
its capital stock (whether in cash or in kind), or redeem, purchase or otherwise
acquire any shares of its capital stock; (vii) not take any action or omit to
take any action which would result in the inaccuracy of any of Seller's or
either of the Stockholders' representations and warranties set forth herein if
such representations or warranties were to be made immediately after the
occurrence of such act or omission; (viii) properly maintain and repair all real
and personal property owned or leased by Seller or the Shareholders and used in
the business of Seller, so that such property at Closing is in the same

                                       34
<PAGE>   39

condition as normally maintained by Seller; (ix) use its prudent business
efforts to have in effect and maintain at all times all insurance of the kind,
in the amount and with the insurers set forth on the Disclosure Schedule hereto
or equivalent insurance; (x) refrain from granting any irrevocable powers of
attorney or comparable delegations of authority; (xi) refrain from taking any
action that would constitute, or fail to take any action that would prevent, a
breach of or a default under any agreement, contract or understanding to which
Seller is a party; (xii) use its prudent business efforts to preserve all
Permits; (xiii) perform all obligations required to be performed by it under any
Contracts; and (xiv) not enter into any collective bargaining agreement or other
contract or agreement (or any amendment or modification thereto) with any labor
union without the prior written consent of the Purchaser. Without limiting the
foregoing, Seller and each of the Stockholders covenant that until the Closing
Date or termination of this Agreement, except as set forth on the Disclosure
Schedule, Seller will not change the compensation of any of its respective
directors, officers, employees, independent contractors or consultants, or enter
into any employment, severance or other agreement with any of such persons,
except in the ordinary course of business.

         Section 7.2 ACCESS TO INFORMATION; CONFIDENTIALITY. Seller and each of
the Stockholders covenant that, between the date of this Agreement and the
Closing Date, Seller will (i) permit Purchaser's authorized representatives and
financing parties full access during normal business hours to all of its books,
records, Tax Returns, reports and other Tax related materials (including,
without limitation, Tax Returns filed and those in preparation as well as
workpapers), offices and other facilities and properties; (ii) permit Purchaser
to make such inspections thereof as Purchaser may reasonably request; and (iii)
furnish Purchaser with such financial and operating data (including, without
limitation, independent accountants' work papers) and other information as
Purchaser may from time to time reasonably request; PROVIDED, HOWEVER, that any
such investigation shall be conducted in such a manner as not to interfere
unreasonably with the operations of Seller.

         Section 7.3 FILINGS AND AUTHORIZATIONS. Each party covenants that it
will, as promptly as practicable, (i) make, or cause to be made, all filings and
submissions required under laws, rules and regulations applicable to it and any
Affiliates, as may be required for it to consummate the transactions
contemplated hereby; (ii) use reasonable efforts to obtain, or cause to be
obtained, all authorizations, approvals, consents and waivers from all Persons
and governmental or public authorities or bodies necessary to be obtained by it
or its Affiliates, in order for it so to consummate such transactions; and (iii)
use its best efforts to take, or cause to be taken, all other actions necessary,
proper or advisable in order for it to fulfill its obligations hereunder. Each
party hereto will coordinate and cooperate with the other parties hereto in
exchanging information and supplying such reasonable assistance as may be
reasonably requested by any other party hereto in connection with the foregoing.
Purchaser, Seller and each of the Stockholders shall make any filings required
pursuant to the HSR Act and shall cooperate with each other to provide any
information requested in connection with such filing.

         Section 7.4 PUBLIC ANNOUNCEMENTS. Unless and to the extent required by
law, each party (other than the Purchaser or parent following the Closing Date)
will agree in advance prior to the issuance of any press release or the making
of any public statement with respect to this Agreement and the transactions
contemplated hereby and shall not issue any such press release or make any such
public statement without the agreement of the other parties. In the event that

                                       35
<PAGE>   40

any party (other than the Purchaser or Parent following the Closing Date) is
required to issue a press release or make a public statement by law, it will
notify the other parties of the contents thereof in advance of the issuance or
making thereof.

         Section 7.5 DISCLOSURE SCHEDULE. From time to time prior to the
Closing, Seller and each of the Stockholders will promptly supplement or amend
the Disclosure Schedule with respect to any matter hereafter arising which, if
existing or occurring at the date of this Agreement or the date on which such
Disclosure Schedule is provided to Purchaser, would have been required to be set
forth or described in such Disclosure Schedule.

         Section 7.6 FINANCIAL STATEMENTS.

         (a) As soon as available and in any event within 30 days after the end
of each fiscal month prior to the Closing Date, Seller and each of the
Stockholders shall deliver to Purchaser such financial statements as are
prepared by Seller in the ordinary course of business (all such financial
statements shall be covered by and conform to the representations and warranties
set forth in Section 3.10 hereof and shall be included in the term "Financial
Statements" for purposes of Section 3.10(a) of this Agreement).

         (b) Seller and each of the Stockholders, at the Stockholders' expense,
shall provide Purchaser or any Affiliate of Purchaser, as soon as practicable
and in any event no later than 30 days after Purchaser's written request
therefor, with such financial statements relating to Seller as may be required
by Rule 3-05 or Article II of Regulation S-X promulgated under the Securities
Act and the Exchange Act in connection with the preparation and filing of any
registration statement or periodic report by Purchaser or any Affiliate of
Purchaser pursuant to the Securities Act or the Exchange Act, including, without
limitation, unqualified opinions thereon of independent public accountants and
consents thereof as required by the Securities Act or the Exchange Act or the
rules and regulations thereunder.

         Section 7.7 ENVIRONMENTAL INSPECTIONS AND ASSESSMENTS. Purchaser shall
have the right to inspect the records and the operations of Seller with respect
to environmental matters, and shall have the right to require Seller to conduct
Phase I assessments, as it deems appropriate. The representations, warranties,
indemnities and other undertakings set forth herein shall not be affected by any
such inspection or assessment or lack thereof, or the results of any such
inspection or assessment.

         Section 7.8 NO SHOPPING.

         (a) Seller and each of the Stockholders covenant, jointly and
severally, that, from and after the date hereof until the termination of this
Agreement, without the express written consent of Purchaser, neither Seller nor
any of the Stockholders shall, directly or indirectly, (i) solicit, initiate
discussions or engage in negotiations with any Person (other than any Purchaser
or its Affiliates or their representatives) relating to the possible
acquisition, whether by way of merger, reorganization, purchase of shares of
capital stock, purchase of assets, management agreement, license or distribution
agreement or otherwise (any such acquisition or other transaction or agreement
being referred to herein as an "ACQUISITION TRANSACTION"), of any interest in
Seller (other than inventory or obsolete, damaged or worn assets sold or
otherwise disposed of in the

                                       36
<PAGE>   41

ordinary course of the Business and consistent with past practice), (ii) provide
information with respect to Seller to any Person (other than any Purchaser or
its Affiliates or their representatives) in connection with a possible
Acquisition Transaction or (iii) enter into an agreement with any Person (other
than any Purchaser or its Affiliates) concerning a possible Acquisition
Transaction. Prior to the termination of this Agreement, if Seller or either of
the Stockholders receives an unsolicited offer or proposal relating to a
possible Acquisition Transaction, Seller or the Stockholders, as the case may
be, shall immediately notify Purchaser and provide information to Purchaser as
to the identity of the party making any such offer or proposal and the specific
terms of such offer or proposal (including, without limitation, the proposed
price and financing therefor).

         (b) The parties recognize and acknowledge that a breach by Seller and
each of the Stockholders of this Section 6.8 will cause irreparable and material
loss and damage to Purchaser as to which it will not have an adequate remedy at
law or in damages. Accordingly, each Party acknowledges and agrees that the
issuance of an injunction or other equitable remedy is an appropriate remedy for
any such breach. In addition, in the event of any breach of the foregoing which
results in the acquisition by a Person other than any Purchaser or its
Affiliates of a majority of the assets of the Business (measured by fair market
value) or of the capital stock of Seller, Seller and the Stockholders shall
promptly reimburse such Purchaser for all fees and expenses (including, without
limitation, out-of-pocket expenses, fees and expenses of accountants, counsel
and other advisors, and the like) incurred by them in connection with the
transactions contemplated by this Agreement.

         Section 7.9 MAINTENANCE OF BOOKS AND RECORDS. Each party shall preserve
until the seventh anniversary of the Closing Date (or such longer period as may
be required by applicable Laws) or, with respect to any pending claim subject to
indemnification pursuant to Article VI hereof, until final resolution of such
claim, all records possessed or to be possessed by such party relating to any of
the assets, liabilities or business of Seller prior to the Closing Date. After
the Closing Date, where there is a legitimate purpose, such party shall provide
any other party with access, upon prior reasonable written request specifying
the need therefor, during regular business hours, to (i) the officers and
employees of such party and (ii) the books of account and records of such party,
but, in each case, only to the extent relating to the assets, liabilities or
business of Seller prior to the Closing Date, and the other party and its
representatives shall have the right to make copies of such books and records;
PROVIDED, HOWEVER, that the foregoing right of access shall not be exercisable
in such a manner as to interfere unreasonably with the normal operations and
business of such party; and FURTHER, PROVIDED, that, as to so much of such
information as constitutes trade secrets or confidential business information of
such party, the requesting party and its officers, directors and representatives
will use due care not to disclose such information except (1) as required by
law, (2) with the prior written consent of such party, or (3) where such
information becomes available to the public generally, or becomes generally
known to competitors of such party, through sources other than the requesting
party, its Affiliates or its officers, directors or representatives.

         Section 7.10 FURTHER ASSURANCES. Seller and each of the Stockholders
from time to time after the Closing, at Purchaser's request, will execute,
acknowledge and deliver to Purchaser such other instruments of conveyance and
transfer and will take such other actions and execute and deliver such other
documents, certifications and further assurances as such Purchaser may

                                       37
<PAGE>   42

reasonably require in order to vest more effectively in Purchaser, or to put
such Purchaser more fully in possession of, the Assets. Each of the parties
hereto will cooperate with each other party hereto and execute and deliver to
each other party hereto such other instruments and documents and take such other
actions as may be reasonably requested from time to time by such other party as
necessary to carry out, evidence and confirm the intended purposes of this
Agreement.

         Section 7.11 RELEASE OF LIENS. At or prior to the Closing, Seller shall
cause the release of all Liens on the Assets, so that such Assets and rights are
free and clear of any Liens, other than as set forth in the Disclosure Schedule.

         Section 7.12 CONSENT TO TRANSFER ASSETS. Seller agrees that if any
consent required pursuant to Sections 5.5 or 5.8 to the transfer of any Asset to
the Purchaser as provided for herein is not obtained prior to Closing, Seller
shall provide to the Purchaser all of the benefits of such Asset as though the
required consents had been obtained (and, to the extent, but, notwithstanding
anything herein to the contrary, only to the extent, such benefits are provided,
the Purchaser shall assume the corresponding obligation) and shall continue to
use all reasonable efforts to obtain such consent; provided that Seller shall
not be required to make any payments not otherwise required under existing
agreements. Nothing in this Section 7.12 shall affect Parent's and the
Purchaser's other rights under this Agreement.

                                  ARTICLE VIII
                                   TERMINATION

         Section 8.1 TERMINATION EVENTS Subject to the provisions of Section
8.2, this Agreement may, by written notice given at or prior to the Closing Date
in the manner hereinafter provided, be terminated and abandoned:

         (a) By either (i) the Stockholders and Seller or (ii) Purchaser if a
default or breach shall be made by the other party with respect to the due and
timely performance of any of its covenants and agreements contained herein, or
with respect to the due compliance with any of the representations and
warranties contained in Article III or IV, as the case may be, and such default
cannot be cured and has not been waived;

         (b) By written mutual consent of Seller, the Stockholders and
Purchaser;

         (c) By either (i) the Stockholders and Seller or (ii) Purchaser, if the
Closing Date shall not have occurred, other than through failure of such party
to fulfill its obligations hereunder, on or before October 1, 1999 or such later
date as may be agreed upon by the parties;

         (d) By Purchaser, if the conditions set forth in Article V hereof shall
not have been met (or shall not, in the reasonable judgment of Purchaser, be
capable of being met) by September 1, 1999; or

         (e) By any party, if the occurrence of the transaction contemplated by
this Agreement would violate any order, decree or judgment prohibiting the
consummation of this Agreement.

                                       38
<PAGE>   43

         Section 8.2 EFFECT OF TERMINATION In the event this Agreement is
terminated pursuant to Section 8.1, all further obligations of the parties
hereunder shall terminate and no party shall have any right against the other
party hereto, except as set forth in this Section 8.2, and each party shall bear
its own costs and expenses. Nothing contained in this Section 8.2 shall relieve
any party from liability for any willful breach of the representations,
warranties, covenants or agreements set forth in this Agreement.

                                   ARTICLE IX
                                  MISCELLANEOUS

         Section 9.1 EXPENSES All expenses in connection with the purchase and
sale of the Assets at the time of this Agreement or any time hereafter will be
paid by the Purchaser; PROVIDED, HOWEVER, that if the transactions contemplated
by this Agreement are not consummated, each party hereto shall pay its own
expenses.

         Section 9.2 AMENDMENTS AND WAIVERS This Agreement shall not be amended
or modified except by a writing duly executed by Purchaser, the Stockholders and
Seller. Waiver of any term or condition of this Agreement by any party shall
only be effective if in writing. No waiver by any party of any default,
misrepresentation, or breach of warranty or covenant hereunder, whether
intentional or not, shall be deemed to extend to any prior or subsequent
default, misrepresentation, or breach of warranty or covenant hereunder or
affect in any way any rights arising by virtue of any prior or subsequent
occurrence.

         Section 9.3 BULK SALES LAWS. The parties hereto hereby waive compliance
with the provisions of any applicable bulk sales laws, including Article 6 of
the Uniform Commercial Code as it may be in effect in any applicable
jurisdiction. This provision shall not be deemed to in any way limit the
indemnity provided for in Section 6.2(e) above.

         Section 9.4 ENTIRE AGREEMENT, ASSIGNMENT (a) This Agreement, including
the Exhibits and Schedules hereto and the other instruments, agreements and
documents delivered pursuant to this Agreement, contains all of the terms,
conditions and representations and warranties agreed upon by the parties
relating to the subject matter of this Agreement and supersedes all prior
agreements, negotiations, correspondence, undertakings and communications of the
parties, oral or written, respecting such subject matter, including, without
limitation, that certain letter of understanding, executed on March 24, 1999 by
and between Parent and Seller and the mutual non-disclosure agreement executed
by and between Communications Resources Incorporated, a Delaware corporation,
and the Stockholders. No party shall be deemed to make any representation,
warranty or covenant to any other party with respect to this Agreement or the
transactions contemplated hereby except for the representations, warranties and
covenants contained herein (including the Schedules and Exhibits hereto and any
documents delivered pursuant hereto).

         (b) This Agreement shall not be assigned by a party hereto by operation
of law or otherwise; PROVIDED, that Parent or the Purchaser may assign its
rights and obligations hereunder to any direct or indirect wholly owned
subsidiary of Parent or the Purchaser, but no such assignment shall relieve
Parent or the Purchaser of its obligations hereunder if such assignee does not
perform such obligations.

                                       39
<PAGE>   44

         Section 9.5 SUCCESSORS AND ASSIGNS All covenants and agreements in this
Agreement contained by or on behalf of either of the parties hereto shall bind
and inure to the benefit of the respective successors and assigns of the parties
hereto whether so expressed or not.

         Section 9.6 NOTICES All notices, requests, demands and other
communications made in connection with this Agreement shall be in writing and
shall be deemed to have been duly given on the date of delivery, if delivered to
the persons identified below, or when received if sent by certified or
registered first-class mail, return receipt requested, or by reputable overnight
delivery service or by facsimile transmission, addressed as follows:

                  If to Seller:

                                            Telecrafter Services Corporation
                                            13131 West Cedar Ave.
                                            Lakewood, CO 80228
                                            Attn:  Bruce A. Nassau
                                            Telecopy: 303-987-8843

                  with a copy to:           Woodson L. Herring, Esq.
                                            Anderson & Jahde, P.C.
                                            950 South Cherry Street Suite 1000
                                            Denver, CO 80246
                                            Telecopy: 303-691-9719

                  If to the Stockholders:

                                            Bruce A. Nassau
                                            Lurie Nassau
                                            c/o Telecrafter Services Corporation
                                            13131 West Cedar Ave.
                                            Lakewood, CO 80228
                                            Telecopy: 303-987-8843

                  If to Parent or Purchaser:

                                            ViaSource Communications, Inc.
                                            c/o Communication Resources, Inc.
                                            1001 Cypress Creek Road
                                            Fort Lauderdale, FL 33309
                                            Attention:  Craig Russey
                                            Telecopy:  954-434-1647

                  With a copy to:           Crest Communications Partners LP
                                            320 Park Avenue, 17th Floor
                                            New York, NY 10022
                                            Attention:  V. Michael Fitzgerald;
                                                        Matthew O'Connell, Esq.

                                       40
<PAGE>   45

                                            Telecopy:  212-317-2710

                                            Woodson L. Herring, Esq.
                                            950 South Cherry Street Suite 1000
                                            Denver, CO 80246
                                            Telecopy: 303-691-9719

                                            Dewey Ballantine LLP
                                            1301 Avenue of the Americas
                                            New York, NY  10019
                                            Attention: Richard A. Stenberg, Esq.
                                            Telecopy:  (212) 259-6333

Such addresses and numbers may be changed, from time to time, by means of a
notice given in the manner provided in this Section.

         Section 9.7 SEVERABILITY. This Agreement shall be deemed severable; the
invalidity or unenforceability of any term or provision of this Agreement shall
not affect the validity or enforceability of this Agreement or of any other term
hereof, which shall remain in full force and effect. Upon a determination that
any term or other provision is invalid, illegal or incapable of being enforced,
the parties hereto shall negotiate in good faith to modify this Agreement so as
to effect the original intent of the parties as closely as possible in an
acceptable manner to the end that transactions contemplated hereby are fulfilled
to the extent possible.

         Section 9.8 SPECIFIC PERFORMANCE. The parties hereto agree that if any
of the provisions of this Agreement were not performed in accordance with their
specific terms or were otherwise breached, irreparable damage would occur, no
adequate remedy at law would exist and damages would be difficult to determine,
and that the parties shall be entitled to specific performance of the terms
hereof, in addition to any other remedy at law or equity.

         Section 9.9 GOVERNING LAW This Agreement shall be construed and
enforced in accordance with, and the rights of the parties shall be governed by,
the laws of the State of Colorado without regard to its conflict of laws
principles.

         Section 9.10 HEADINGS; TABLE OF CONTENTS The descriptive headings of
the several paragraphs of this Agreement and the table of contents are inserted
for convenience only and do not constitute a part of this Agreement.

         Section 9.11 COUNTERPARTS This Agreement may be executed simultaneously
in two or more counterparts, all of which shall be deemed but one and the same
instrument and each of which shall be deemed an original, and it shall not be
necessary in making proof of this Agreement to produce or account for more than
one such counterpart.

                                       41
<PAGE>   46

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date first written above.

                                        VIASOURCE COMMUNICATIONS, INC.

                                        By: /s/ Craig T. Russey
                                            ------------------------------------
                                            Name: Craig T. Russey
                                            Title: President

                                        TELECRAFTER ACQUISITION CORP.

                                        By: /s/ Craig T. Russey
                                            ------------------------------------
                                            Name: Craig T. Russey
                                            Title: President

                                        NASSAU COMMUNICATIONS, INC.

                                        By: /s/ Bruce A. Nassau
                                            ------------------------------------
                                            Name: Bruce A. Nassau
                                            Title:

                                        BRUCE A. NASSAU

                                        /s/ Bruce A. Nassau
                                        ----------------------------------------

                                        LURIE NASSAU

                                        /s/ Lurie Nassau
                                        ----------------------------------------

                                       42<PAGE>   1
                                                               EXHIBIT 10.10(a)

                              AMENDED AND RESTATED
                                CREDIT AGREEMENT

                           dated as of March 10, 2000

                                 by and between

                         VIASOURCE COMMUNICATIONS, INC.
                               (formerly known as
                              THE RTK GROUP, INC.)
                                   as Borrower

                                       and

                      GENERAL ELECTRIC CAPITAL CORPORATION
                                    as Lender

<PAGE>   2

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                                 Page
<S>               <C>                                                                                            <C>

SECTION 1.  DEFINITIONS..........................................................................................   1

                  1.1    Certain Defined Terms...................................................................   1
                  1.2    Accounting Terms; Utilization of GAAP for
                          Purposes of Calculations Under Agreement...............................................  23
                  1.3    Other Definitional Provisions and Rules of Construction.................................  23

SECTION 2.  THE LOAN.............................................................................................  24
                  2.1    Making of Loans; Notes..................................................................  24
                  2.2    Interest on the Loans...................................................................  25
                  2.3    Letters of Credit.......................................................................  28
                  2.4    Repayments, Prepayments and Redemption of Loan;
                          General Provisions Regarding Payments..................................................  32
                  2.5    Unused Facility Fee.....................................................................  36
                  2.6    Use of Proceeds.........................................................................  36
                  2.7    Special Provisions Governing LIBOR Rate Loan............................................  37
                  2.8    Increased Costs, Taxes; Capital Adequacy................................................  39
                  2.9    Guaranties of and Security for the Obligations..........................................  42

SECTION 3.  CONDITIONS TO THE LOANS..............................................................................  42
                  3.1    Conditions to Effectiveness on Initial Effective Date...................................  42
                  3.2    Conditions to Effectiveness on New Effective Date.......................................  43

SECTION 4.  BORROWER'S REPRESENTATIONS AND WARRANTIES............................................................  46
                  4.1    Organization, Powers, Qualification, Good Standing, Business and
                           Subsidiaries..........................................................................  46
                  4.2    Authorization of Borrowing, etc.........................................................  47
                  4.3    Financial Condition.....................................................................  48
                  4.4    No Material Adverse Change; No Restricted Junior Payments...............................  48
                  4.5    Title to Properties; Liens; Real Property...............................................  49
                  4.6    Litigation; Adverse Facts...............................................................  49
                  4.7    Payment of Taxes........................................................................  49
                  4.8    Performance of Agreements; Materially Adverse Agreements; Material
                           Contracts.............................................................................  50
                  4.9    Governmental Regulation.................................................................  50
                  4.10   Securities Activities...................................................................  50
                  4.11   Employee Benefit Plans..................................................................  51
                  4.12   Certain Fees............................................................................  51
                  4.13   Employee Matters........................................................................  51
                  4.14   Solvency................................................................................  51
</TABLE>

                                       i

<PAGE>   3

<TABLE>
<S>               <C>                                                                                              <C>
                  4.15   Matters Relating to Collateral..........................................................  52
                  4.16   Disclosure..............................................................................  53
                  4.17   Insurance...............................................................................  53
                  4.18   Intellectual Property...................................................................  53
                  4.19   [Intentionally Omitted].................................................................  54
                  4.20   Environmental Protection................................................................  54
                  4.21   Year 2000 Compliance....................................................................  55

SECTION 5.  BORROWER'S AFFIRMATIVE COVENANTS.....................................................................  55
                  5.1    Financial Statements and Other Reports..................................................  55
                  5.2    Existence, etc..........................................................................  61
                  5.3    Payment of Taxes and Claims; Tax Consolidation..........................................  61
                  5.4    Maintenance of Properties; Insurance;
                          Application of Net Insurance/Condemnation Proceeds.....................................  62
                  5.5    Inspection Rights; Lender Meeting.......................................................  63
                  5.6    Compliance with Laws, etc...............................................................  64
                  5.7    Environmental Disclosure and Inspection.................................................  64
                  5.8    Compliance with Related Documents; Use of Proceeds......................................  67
                  5.9    Additional Real Property Collateral.....................................................  67
                  5.10   Dissolution of Inactive Subsidiaries....................................................  67

SECTION 6.  BORROWER'S NEGATIVE COVENANTS........................................................................  68
                  6.1    Indebtedness............................................................................  68
                  6.2    Liens and Related Matters...............................................................  69
                  6.3    Dividends; Seller Notes.................................................................  70
                  6.4    Investments; Joint Ventures.............................................................  71
                  6.5    Contingent Obligations..................................................................  71
                  6.6    Restricted Junior Payments..............................................................  71
                  6.7    Financial Covenant......................................................................  72
                  6.8    Restriction on Fundamental Changes; Asset Sales and Acquisitions........................  72
                  6.9    Sales and Lease-Backs...................................................................  73
                  6.10   Sale or Discount of Receivables.........................................................  73
                  6.11   Transactions with Shareholders and Affiliates...........................................  73
                  6.12   Disposal of Subsidiary Stock............................................................  73
                  6.13   Conduct of Business.....................................................................  74
                  6.14   Amendments of Waivers of Related Documents and Charter Documents........................  74
                  6.15   Fiscal Year.............................................................................  74

SECTION 7.  EVENTS OF DEFAULT....................................................................................  75
                  7.1    Failure to Make Payments When Due.......................................................  75
                  7.2    Default in Other Agreements.............................................................  75
                  7.3    Breach of Certain Covenants.............................................................  75
                  7.4    Breach of Warranty......................................................................  75
                  7.5    Other Defaults Under Loan Documents.....................................................  76
</TABLE>

                                       ii

<PAGE>   4

<TABLE>
<S>               <C>                                                                                              <C>
                  7.6    Involuntary Bankruptcy; Appointment of Receiver, etc....................................  76
                  7.7    Voluntary Bankruptcy; Appointment of Receiver, etc......................................  76
                  7.8    Judgments and Attachments...............................................................  77
                  7.9    Dissolution.............................................................................  77
                  7.10   Employee Benefit Plans..................................................................  77
                  7.11   Change in Control.......................................................................  77
                  7.12   Failure of Security or Guaranty.........................................................  77

SECTION 8.  MISCELLANEOUS........................................................................................  78
                  8.1    Assignments and Participations in Loans.................................................  78
                  8.2    Expenses................................................................................  79
                  8.3    Indemnity...............................................................................  80
                  8.4    Set-Off; Security Interest in Deposit Accounts..........................................  81
                  8.5    Amendments and Waivers..................................................................  81
                  8.6    Independence of Covenants...............................................................  81
                  8.7    Notices.................................................................................  81
                  8.8    Survival of Representations, Warranties and Agreements..................................  82
                  8.9    Failure or Indulgence Not Waiver; Remedies Cumulative...................................  82
                  8.10   Marshalling; Payments Set Aside.........................................................  82
                  8.11   Severability............................................................................  82
                  8.12   Headings................................................................................  83
                  8.13   Applicable Law..........................................................................  83
                  8.14   Successors and Assigns..................................................................  83
                  8.15   Consent to Jurisdiction and Service of Process..........................................  83
                  8.16   Waiver of Jury Trial....................................................................  84
                  8.17   Confidentiality.........................................................................  85
                  8.18   Counterparts; Effectiveness.............................................................  85
</TABLE>

                                      iii

<PAGE>   5

<TABLE>
<CAPTION>
EXHIBITS
<S>               <C>

I-b               Form of Notice of Borrowing (Revolving Advance)
II                Form of Notice of Conversion/Continuation
III-b             Form of Revolving Note
IV                Form of Compliance Certificate
V-a               Form of Opinion of Pitney, Hardin, Kipp & Szuch
V-b               Form of Opinion of Dewey Ballantine
VI                Form of Assignment Agreement
VII               Form of Borrower Pledge Agreement
VIII              Form of Borrower Security Agreement
IX                Form of Subsidiary Guaranty
X                 Form of Subsidiary Security Agreement
XI                Form of Holdings Pledge Agreement
XII               Form of Landlord Consent
XIII              Form of Financial Condition Certificate
XIV               [Intentionally Omitted]
XV                Form of Stockholders' Agreement
XVI               Form of Seller Note Subordination Provisions
XVII              Form of Tax Sharing Agreement
XVIII             Form of Warrant
</TABLE>

                                       iv

<PAGE>   6

<TABLE>
<CAPTION>
SCHEDULES

<S>               <C>
4.1(d)            Subsidiaries
4.1(f)            Collateral Matters
4.3               Financial Condition
4.4               No Material Adverse Change
4.5               Real Property Leases
4.6               Litigation; Adverse Facts
4.8               Material Contracts
4.12              Broker's Fee
4.17              Insurance
4.20              Environmental Matters
6.2               Existing Liens (including list of existing UCC filings)
6.3               Existing Subsidiaries
</TABLE>

                                        v

<PAGE>   7

                      AMENDED AND RESTATED CREDIT AGREEMENT

                  AMENDED AND RESTATED CREDIT AGREEMENT, dated as of March 10,
2000 and entered into between VIASOURCE COMMUNICATIONS, INC. (formerly known as
THE RTK GROUP, INC.), a New Jersey corporation (together with its permitted
successors and assigns, "BORROWER") and GENERAL ELECTRIC CAPITAL CORPORATION
(together with its successors and assigns, "GECC" or "LENDER").

                                    RECITALS

                  Borrower and Lender entered into a Credit Agreement, dated as
of September 7, 1999, as amended as of December 22, 1999 (as so amended, the
"ORIGINAL CREDIT AGREEMENT"), pursuant to which Lender provided to Borrower a
secured term loan in the initial principal amount of $15,000,000, the proceeds
of which were utilized by Borrower to finance, in part, the Telecrafter
Acquisition.

                  Borrower has requested, and Lender has agreed to provide
Lender with a $15,000,000 senior secured revolving credit facility, the initial
proceeds of which shall be contributed by Borrower to certain of its Domestic
Subsidiaries to make payment in full of all Indebtedness outstanding under the
Senior Credit Agreements, and ongoing proceeds of which shall be used for
working capital needs, capital expenditures, acquisitions (each, to the extent
permitted hereunder) and other general corporate purposes of Borrower and its
Subsidiaries.

                  NOW THEREFORE, in consideration of the premises and the
agreements, provisions and covenants herein contained, Borrower and Lender
hereby agree that the Original Credit Agreement is hereby AMENDED AND RESTATED
as follows:

                                   SECTION 1.
                                  DEFINITIONS

         1.1      CERTAIN DEFINED TERMS.

                  The following terms used in this Agreement shall have the
following meanings:

                  "ADJUSTED LIBOR RATE" means, for each Interest Period, a rate
of interest determined by Lender equal to:

                           (a)      the offered rate for deposits in United
         States Dollars for the applicable Interest Period which appears on
         Telerate Page 3750 as of 11:00 a.m., London time, on the second full
         Business Day next preceding the first day of each Interest Period
         (unless such date is not a Business Day, in which event the next
         succeeding Business Day will be used); divided by

                  (b)      a number equal to 1.0 minus the aggregate (but
         without duplication) of the rate (expressed as a decimal fraction) of
         reserve requirements

<PAGE>   8

         in effect on the day which is two (2) Business Days prior to the
         beginning of such Interest Period (including basic, supplemental,
         marginal and emergency reserves under any regulation of the Board of
         Governors of the Federal Reserve System or other governmental authority
         having jurisdiction with respect thereto, as now and from time to time
         in effect) for Eurocurrency funding (currently referred to as
         "Eurocurrency liabilities" in Regulation D of such Board) which are
         required to be maintained by a member bank of the Federal Reserve
         System.

                  If such interest rates shall cease to be available from
Telerate News Service, the Adjusted LIBOR Rate shall be determined from such
financial reporting service or other information as shall be mutually acceptable
to Lender and Borrower.

                  "AFFILIATE", as applied to any Person, means any other Person
directly or indirectly controlling, controlled by, or under common control with,
that Person. For the purposes of this definition, "control" (including, with
correlative meanings, the terms "controlling", "controlled by" and "under common
control with"), as applied to any Person, means the possession, directly or
indirectly, of the power to direct or cause the direction of the management and
policies of that Person, whether through the ownership of voting securities or
by contract or otherwise.

                  "AGREEMENT" means this Amended and Restated Credit Agreement
dated as of March __, 2000, as it may hereafter be amended, supplemented or
otherwise modified from time to time in accordance with the terms set forth
herein.

                  "APPLICABLE MARGIN" means, with respect to any Loan, the
percentage determined by reference to subsection 2.2(a).

                  "ASSET SALE" means the sale by Borrower or any of its
Subsidiaries to any Person other than Borrower or any of its Subsidiaries of (i)
any of the stock of any of the Subsidiaries, (ii) substantially all of the
assets of any division or line of business of Borrower or any of its
Subsidiaries, or (iii) any other assets (whether tangible or intangible) of
Borrower or any of its Subsidiaries outside of the ordinary course of business.

                  "ASSIGNMENT AGREEMENT" means an Assignment Agreement in
substantially the form of Exhibit VI annexed hereto.

                  "BANKRUPTCY CODE" means Title 11 of the United States Code
entitled "Bankruptcy", as now and hereafter in effect, or any successor statute.

                  "BASE RATE" means, at any time, the higher of (x) the Prime
Rate or (y) the rate which is 1/2 of 1% in excess of the Federal Funds Effective
Rate.

                  "BASE RATE LOAN" means a Loan bearing interest at rates
determined by reference to the Base Rate as provided in subsection 2.2(a).

                  "BORROWER" has the meaning assigned to such term in the
heading to this Agreement.

                                        2

<PAGE>   9

                  "BORROWER PLEDGE AGREEMENT" means the Pledge and Security
Agreement executed and delivered by Borrower on the Initial Effective Date,
substantially in the form of Exhibit VII annexed hereto, as such agreement may
thereafter be amended, supplemented or otherwise modified from time to time as
permitted thereunder and hereunder.

                  "BORROWER SECURITY AGREEMENT" means Borrower Security
Agreement executed and delivered by Borrower on the Initial Effective Date,
substantially in the form of Exhibit VIII annexed hereto, relating to the
Collateral owned by Borrower, as such agreement may thereafter be amended,
supplemented or otherwise modified from time to time as permitted thereunder and
hereunder.

                  "BREAKAGE COSTS" means, to the extent that Lender is funding
the maintenance of a Loan during such funding period at the Adjusted LIBOR Rate,
during which the amount of such investment is reduced (in whole or in part)
prior to the end of the period for which it was originally scheduled to remain
outstanding (the amount of such reduced investment being referred to as the
"Allocated Amount"), the excess of (a) the discount or interest that would have
accrued on the Allocated Amount during the remainder of such funding period if
such reduction had not occurred over (b) the income, if any, scheduled to be
received by Lender from investing the Allocated Amount for the remainder of such
funding period.

                  "BRIDGE LOAN" means that certain $5,000,000 bridge loan
provided by Crest to Borrower to enable Borrower to redeem certain shares of
capital stock held by existing shareholders, all pursuant to that certain Stock
Purchase Agreement, dated as of June 14, 1999, by and among Crest, the Initial
Investors and Borrower.

                  "BUSINESS DAY" means (i) for all purposes other than as
covered by clause (ii) below, any day excluding Saturday, Sunday and any day
which is a legal holiday under the laws of the State of New York or is a day on
which banking institutions located in such state are authorized or required by
law or other governmental action to close, and (ii) with respect to all notices,
determinations, fundings and payments in connection with the Adjusted LIBOR Rate
or a LIBOR Rate Loan, any day that is a Business Day described in clause (i)
above and that is also a day for trading by and between banks in Dollar deposits
in the London interbank market.

                  "CAPITAL LEASE", as applied to any Person, means any lease of
any property (whether real, personal or mixed) by that Person as lessee that, in
conformity with GAAP, is accounted for as a capital lease on the balance sheet
of that Person.

                  "CASH" means money, currency or a credit balance in a Deposit
Account.

                  "CASH COLLATERAL ACCOUNT" has the meaning assigned to that
term in subsection 2.3(c).

                  "CASH EQUIVALENTS" means, as at any date of determination, (i)
marketable securities (a) issued or directly and unconditionally guaranteed as
to interest and principal by the United States Government or (b) issued by any
agency of the United States the

                                        3

<PAGE>   10

obligations of which are backed by the full faith and credit of the United
States, in each case maturing within one year after such date; (ii) marketable
direct obligations issued by any state of the United States of America or any
political subdivision of any such state or any public instrumentality thereof,
in each case maturing within one year after such date and having, at the time of
the acquisition thereof, the highest rating obtainable from either Standard &
Poor's Ratings Group ("S&P") or Moody's Investors Service, Inc. ("MOODY'S");
(iii) commercial paper maturing no more than one year from the date of creation
thereof and having, at the time of the acquisition thereof, a rating of at least
A-1 from S&P or at least P-1 from Moody's; (iv) certificates of deposit or
bankers' acceptances maturing within one year after such date and issued or
accepted by any commercial bank organized under the laws of the United States of
America or any state thereof or the District of Columbia that (a) is at least
"adequately capitalized" (as defined in the regulations of its primary Federal
banking regulator) and (b) has Tier 1 capital (as defined in such regulations)
of not less than $100,000,000; and (v) shares of any money market mutual fund
that (a) has at least 95% of its assets invested continuously in the types of
investments referred to in clauses (i) and (ii) above, (b) has net assets of not
less than $500,000,000, and (c) has the highest rating obtainable from either
S&P or Moody's.

                  "CHANGE OF CONTROL" means:

                           (a)      Crest ceasing for any reason to legally own
         and control at least 13% (on a fully diluted basis) of the issued and
         outstanding shares of capital stock of Borrower entitled to vote
         (without regard to any contingency) for the election of members of the
         Board of Directors thereof;

                           (b)      prior to the consummation of an Initial
         Public Offering, Crest ceasing for any reason to maintain those rights
         granted to it pursuant to Section 2.02 of the Stockholders' Agreement;

                           (c)      the sale, lease, or transfer of all or
         substantially all of Borrower's assets to any person or group (as such
         term is used in Section 13(d)(3) of the Exchange Act) other than a
         wholly-owned Subsidiary;

                           (d)      the adoption of a plan relating to the
         liquidation or dissolution of Borrower; or

                           (e)      the first day on which a majority of the
         members of Borrower's Boards of Directors are not individuals who on
         the Initial Effective Date are members of such Board of Directors or
         who were nominated for election or elected with the approval of a
         majority of the directors who were directors on the Initial Effective
         Date or whose nomination or election was previously so approved.

                  "COLLATERAL" means, collectively, all of the real, personal
and mixed property (including capital stock), and all Intellectual Property, in
each case, in which Liens are purported to be granted pursuant to the Security
Documents as security for the Obligations.

                                        4

<PAGE>   11

                  "COMPLIANCE CERTIFICATE" means a certificate substantially in
the form of Exhibit IV annexed hereto delivered to Lender by Borrower pursuant
to subsection 5.1(iv).

                  "CONSOLIDATED CAPITAL EXPENDITURES" means, for any period, the
aggregate of all expenditures (whether paid in cash or other consideration or
accrued as a liability and including that portion of Capital Leases which is
capitalized on the consolidated balance sheet of Borrower and its Subsidiaries)
by Borrower and its Subsidiaries during that period that, in conformity with
GAAP, are included in "additions to property, plant or equipment" or comparable
items reflected in the consolidated statement of cash flows of Borrower and its
Subsidiaries.

                  "CONSOLIDATED EXCESS CASH FLOW" means, for any Fiscal Year, an
amount (if positive) equal to (1) consolidated net income, plus (2) solely to
the extent deducted in determining consolidated net income (a) consolidated
depreciation, amortization, plus (b) Consolidated Interest Expense plus (or
minus)(as the case may be) decreases (increases) in working capital, minus (3)
the sum, without duplication, of (a) scheduled repayments of Consolidated Total
Debt, (b) Consolidated Capital Expenditures, (c) Consolidated Interest Expense,
plus or minus (as the case may be), (4) solely to the extent deducted in
determining consolidated net income, extraordinary gains or losses which are
cash items, and plus (5) taxes deducted in determining consolidated net income
to the extent not paid for in cash.

                  "CONSOLIDATED INTEREST EXPENSE" means, for any period, total
interest expense (including that portion attributable to Capital Leases in
accordance with GAAP and capitalized interest but excluding interest on the
Seller Notes payable via issuance of payment-in-kind promissory notes the form
of which are acceptable in form and substance to Lender in its reasonable
discretion but excluding interest on the Seller Notes to the extent not paid in
cash) of Borrower and its Subsidiaries on a consolidated basis with respect to
all outstanding Indebtedness of Borrower and its Subsidiaries, including all
commissions, discounts and other fees and charges owed with respect to letters
of credit and bankers' acceptance financing and net costs under Interest Rate
Agreements, but excluding, however, any commitment or other similar fees paid to
Lender on or before the Initial Effective Date.

                  "CONSOLIDATED TOTAL DEBT" means, as at any date of
determination, the aggregate amount of all Indebtedness that would be stated on
the balance sheet of Borrower and its Subsidiaries, determined on a consolidated
basis in accordance with GAAP.

                  "CONTINGENT OBLIGATION", as applied to any Person, means any
direct or indirect liability, contingent or otherwise, of that Person (i) with
respect to any Indebtedness, lease, dividend or other obligation of another if
the primary purpose or intent thereof by the Person incurring the Contingent
Obligation is to provide assurance to the obligee of such obligation of another
that such obligation of another will be paid or discharged, or that any
agreements relating thereto will be complied with, or that the holders of such
obligation will be protected (in whole or in part) against loss in respect

                                        5

<PAGE>   12

thereof, (ii) with respect to any letter of credit issued for the account of
that Person or as to which that Person is otherwise liable for reimbursement of
drawings, or (iii) under Interest Rate Agreements. Contingent Obligations shall
include (a) the direct or indirect guaranty, endorsement (otherwise than for
collection or deposit in the ordinary course of business), co-making,
discounting with recourse or sale with recourse by such Person of the obligation
of another, (b) the obligation to make take-or-pay or similar payments if
required regardless of non-performance by any other party or parties to an
agreement, and (c) any liability of such Person for the obligation of another
through any agreement (contingent or otherwise) (X) to purchase, repurchase or
otherwise acquire such obligation or any security therefor, or to provide funds
for the payment or discharge of such obligation (whether in the form of loans,
advances, stock purchases, capital contributions or otherwise) or (Y) to
maintain the solvency or any balance sheet item, level of income or financial
condition of another if, in the case of any agreement described under subclauses
(X) or (Y) of this sentence, the primary purpose or intent thereof is as
described in the preceding sentence. The amount of any Contingent Obligation
shall be equal to the amount of the obligation so guaranteed or otherwise
supported or, if less, the amount to which such Contingent Obligation is
specifically limited.

                  "CONTRACTUAL OBLIGATION", as applied to any Person, means any
provision of any Security issued by that Person or of any material indenture,
mortgage, deed of trust, contract, undertaking, agreement or other instrument to
which that Person is a party or by which it or any of its properties is bound or
to which it or any of its properties is subject.

                  "CREST" means Crest Communications Partners LP, together with
its successors and assigns.

                  "CRI" means Communications Resources Incorporated, together
with its successors and assigns.

                  "DEFAULT" means a condition or event that, after notice or
lapse of time or both, would constitute an Event of Default.

                  "DEPOSIT ACCOUNT" means a demand, time, savings, passbook or
like account with a bank, savings and loan association, credit union or like
organization, other than an account evidenced by a negotiable certificate of
deposit.

                  "DOLLARS" and the sign "$" mean the lawful money of the
United States of America.

                  "DOMESTIC SUBSIDIARY" means each Subsidiary of Borrower
incorporated or organized in the United States of America or under the law of
the United States of America or of any state thereof.

                  "EBITDA" with respect to Borrower and its Subsidiaries on a
consolidated basis, means an amount equal to (a) consolidated net income of such
Persons for such period, minus (b) the sum of (i) income tax credits, (ii)
interest income,

                                        6

<PAGE>   13

(iii) gain from extraordinary items for such period, (iv) any aggregate net gain
(but not any aggregate net loss) during such period arising from the sale,
exchange or other disposition of capital assets by such Person (including any
fixed assets, whether tangible or intangible, all inventory sold in conjunction
with the disposition of fixed assets and all securities), and (v) any other
non-cash gains which have been added in determining consolidated net income, in
each case to the extent included in the calculation of consolidated net income
of such Person for such period in accordance with GAAP, but without duplication,
plus (c) the sum of (i) any provision for income taxes, (ii) Consolidated
Interest Expense, (iii) loss from extraordinary items for such period, (iv) the
amount of non-cash charges (including depreciation and amortization) for such
period, (v) amortized debt discount for such period, and (vi) the amount of any
deduction to consolidated net income as the result of any grant to any members
of the management of such Person of any stock in each case to the extent
included in the calculation of consolidated net income of such Person for such
period in accordance with GAAP, but without duplication. For purposes of this
definition, the following items shall be excluded in determining consolidated
net income of a Person: (1) the income (or deficit) of any other Person (other
than a Subsidiary) in which such Person has an ownership interest, except to the
extent any such income has actually been received by such person in the form of
cash dividends or distributions; (2) the undistributed earnings of any
Subsidiary of such Person to the extent that the declaration or payment of
dividends or similar distributions by such Subsidiary is not at the time
permitted by the terms of any contractual obligation or requirement of law
applicable to such Subsidiary; (3) any restoration to income of any contingency
reserve, except to the extent that provision for such reserve was made out of
income accrued during such period; (4) any write-up of any assets; (5) any net
gain from the collection of the proceeds of life insurance policies; (6) any net
gain arising from the acquisition of any securities, or the extinguishment,
under GAAP, of any Indebtedness, of such Person, (7) in the case of a successor
to such Person by consolidation or merger or as a transferee of its assets, any
earnings of such successor prior to such consolidation, merger or transfer of
assets, and (8) any deferred credit representing the excess of equity in any
Subsidiary of such Person at the date of acquisition of such Subsidiary over the
cost to such Person of the investment in such Subsidiary. For the purposes of
calculating the Total Leverage Ratio, the income (or deficit) of any other
Person accrued prior to the date such Person became a Subsidiary of, or was
merged or consolidated into, such Person or any of such Person's Subsidiaries,
in all events pursuant to a Permitted Acquisition, shall be included in
determining the consolidated net income of a Person.

                  "EMPLOYEE BENEFIT PLAN" means any "employee benefit plan" as
defined in Section 3(3) of ERISA which is maintained or contributed to by
Borrower, any of its Subsidiaries or any of their respective ERISA Affiliates or
with respect to which Borrower or any of its Subsidiaries has liabilities.

                  "ENVIRONMENTAL CLAIM" means any investigation, notice, notice
of violation, claim, action, suit, proceeding, demand, abatement order or other
order or directive (conditional or otherwise), by any governmental authority or
any other Person, arising (i) pursuant to or in connection with any actual or
alleged violation of any Environmental Law, (ii) in connection with any
Hazardous Materials or any actual or

                                        7

<PAGE>   14

alleged Hazardous Materials Activity, or (iii) in connection with any actual or
alleged damage, injury, threat or harm to health, safety, natural resources or
the environment.

                  "ENVIRONMENTAL LAWS" means any and all current or future
statutes, ordinances, rules, regulations, judgments, Governmental
Authorizations, or any other requirements of governmental authorities relating
to (i) environmental matters, including those relating to any Hazardous
Materials Activity, (ii) the generation, use, storage, transportation or
disposal of Hazardous Materials, or (iii) occupational safety and health,
industrial hygiene or the protection of human, plant or animal health, in any
manner applicable to Company or any of its Subsidiaries or any Facility,
including the Comprehensive Environmental Response, Compensation, and Liability
Act (42 U.S.C. ss. 9601 et seq.), the Hazardous Materials Transportation Act (49
U.S.C. ss. 1801 et seq.), the Resource Conservation and Recovery Act (42 U.S.C.
ss. 6901 et seq.), the Federal Water Pollution Control Act (33 U.S.C. ss. 1251
et seq.), the Clean Air Act (42 U.S.C. ss. 7401 et seq.), the Toxic Substances
Control Act (15 U.S.C. ss. 2601 et seq.), the Federal Insecticide, Fungicide and
Rodenticide Act (7 U.S.C. ss. 136 et seq.), the Occupational Safety and Health
Act (29 U.S.C. ss. 651 et seq.), the Oil Pollution Act (33 U.S.C. ss. 2701 et
seq.) and the Emergency Planning and Community Right-to-Know Act (42 U.S.C. ss.
1100l et seq.), each as amended or supplemented, any analogous present or future
state or local statutes or laws, and any regulations promulgated pursuant to any
of the foregoing.

                  "ERISA" means the Employee Retirement Income Security Act of
1974, as amended from time to time, and any successor thereto.

                  "ERISA AFFILIATE" means, as applied to any Person, (i) any
corporation which is a member of a controlled group of corporations within the
meaning of Section 414(b) of the Internal Revenue Code of which that Person is a
member; (ii) any trade or business (whether or not incorporated) which is a
member of a group of trades or businesses under common control within the
meaning of Section 414(c) of the Internal Revenue Code of which that Person is a
member; and (iii) any member of an affiliated service group within the meaning
of Section 414(m) or (o) of the Internal Revenue Code of which that Person, is a
member. Any former ERISA Affiliate of Borrower or any of its Subsidiaries shall
continue to be considered an ERISA Affiliate of Borrower or such Subsidiary
within the meaning of this definition with respect to the period such entity was
an ERISA Affiliate of Borrower or such Subsidiary and with respect to
liabilities arising after such period for which Borrower or such Subsidiary
could be liable under the Internal Revenue Code or ERISA as a result of such
affiliation with such former ERISA Affiliate.

                  "ERISA EVENT" means (i) a "reportable event" within the
meaning of Section 4043 of ERISA and the regulations issued thereunder with
respect to any Pension Plan (excluding those for which the provision for 30-day
notice to the PBGC has been waived by regulation); (ii) the failure to meet the
minimum funding standard of Section 412 of the Internal Revenue Code with
respect to any Pension Plan (whether or not waived in accordance with Section
412(d) of the Internal Revenue Code) or the failure to make by its due date a
required installment under Section 412(m) of the Internal Revenue Code with
respect to any Pension Plan or the failure to make any required contribution to

                                       8
<PAGE>   15

a Multiemployer Plan; (iii) the provision by the administrator of any Pension
Plan pursuant to Section 4041(a)(2) of ERISA of a notice of intent to terminate
such plan in a distress termination described in Section 4041(c) of ERISA; (iv)
the withdrawal by Borrower, any of its Subsidiaries or any of their respective
ERISA Affiliates from any Pension Plan with two or more contributing sponsors or
the termination of any such Pension Plan resulting in liability pursuant to
Section 4063 or 4064 of ERISA; (v) the institution by the PBGC of proceedings to
terminate any Pension Plan, or the occurrence of any event or condition which is
reasonably likely to constitute grounds under ERISA for the termination of, or
the appointment of a trustee to administer, any Pension Plan; (vi) the
imposition of liability on Borrower, any of its Subsidiaries or any of their
respective ERISA Affiliates pursuant to Section 4062(e) or 4069 of ERISA or by
reason of the application of Section 4212(c) of ERISA; (vii) the withdrawal of
Borrower, any of its Subsidiaries or any of their respective ERISA Affiliates in
a complete or partial withdrawal (within the meaning of Sections 4203 and 4205
of ERISA) from any Multiemployer Plan if there is a reasonable likelihood for
the assessment of liability in connection therewith, or the receipt by Borrower,
any of its Subsidiaries or any of their respective ERISA Affiliates of notice
from any Multiemployer Plan that it is in reorganization or insolvency pursuant
to Section 4241 or 4245 of ERISA, or that it intends to terminate or has
terminated under Section 4041A or 4042 of ERISA; (viii) the occurrence of an act
or omission which could give rise to the imposition on Borrower or any of its
Subsidiaries of fines, penalties, taxes or related charges under Chapter 43 of
the Internal Revenue Code or under Section 409, Section 502(c), (i) or (l), or
Section 4071 of ERISA in respect of any Employee Benefit Plan; (ix) the
assertion of a material claim (other than routine claims for benefits) against
any Employee Benefit Plan maintained by Borrower or any of its Subsidiaries or
against Borrower or any of its Subsidiaries in connection with any Employee
Benefit Plan; (x) receipt from the Internal Revenue Service of notice of the
failure of any Pension Plan (or any other Employee Benefit Plan intended to be
qualified under Section 401(a) of the Internal Revenue Code other than a
Multiemployer Plan) to qualify under Section 401(a) of the Internal Revenue
Code, or the failure of any trust forming part of any Pension Plan to qualify
for exemption from taxation under Section 501(a) of the Internal Revenue Code;
or (xi) the imposition of a Lien pursuant to Section 401(a)(29) or 412(n) of the
Internal Revenue Code or pursuant to ERISA with respect to any Pension Plan.

                  "EVENT OF DEFAULT" means each of the events set forth in
Section 7.

                  "EXCHANGE ACT" means the Securities Exchange Act of 1934, as
amended from time to time, and any successor statute.

                  "FACILITY" or "FACILITIES" means any and all real property
(including all buildings, fixtures or other improvements located thereon) now,
hereafter or heretofore owned, leased, operated or used by Borrower or any of
its Subsidiaries or any of their respective predecessors or Affiliates.

                  "FEDERAL FUNDS EFFECTIVE RATE" means, for any period, a
floating rate equal to the weighted average of the rates on overnight Federal
funds transactions among members of the Federal Reserve System, as determined by
Lender.

                                       9
<PAGE>   16

                  "FINANCIAL PLAN" has the meaning assigned to that term in
subsection 5.1(xii).

                  "FIRST UNION L/C" means that certain letter of credit in the
face amount of $500,000, Letter of Credit No. SM403725, issued by First Union
Bank on 03/07/99 with an expiry date of 06/30/00 and naming CRI as applicant and
Credit Protection Association, L.P. as beneficiary thereunder.

                  "FISCAL QUARTER" means a fiscal quarter of any Fiscal Year.

                  "FISCAL YEAR" means the 52/53 week fiscal period of Borrower
and its Subsidiaries ending on the Saturday immediately preceding December 31 of
each calendar year.

                  "FIXED CHARGE COVERAGE RATIO" means, as of any date of
determination, the ratio of (x) the sum of (i) EBITDA minus (ii) Consolidated
Capital Expenditures, minus (iii) income Taxes excluded in determining EBITDA,
each as of end of any fiscal quarter, to (y) the sum of (i) mandatory principal
payments on Consolidated Total Debt, plus (ii) Consolidated Interest Expense, in
each case, for the twelve consecutive month period most recently ended, plus
(iii) dividends paid by Borrower to any member of the Investor Group for the 12
consecutive month period most recently ended.

                  "FOREIGN SUBSIDIARY" means each Subsidiary of Borrower other
than a Domestic Subsidiary.

                  "FUNDING AND PAYMENT OFFICE" means (i) the office of Lender
located at 2325 Lakeview Parkway, Suite 7000, Alpharetta, Georgia 30004-1976,
Attn: Account Manager -ViaSource, and for wire transfer purposes, Bankers Trust
Company, New York, NY, ABA Routing No. 021001033, Credit Account No. 502-328-54,
Account Name: GECC/CAF Depository -ViaSource, or (ii) such other office of
Lender as may from time to time be hereafter designated as such in a written
notice delivered by Lender to Borrower.

                  "GAAP" means, subject to the limitations on the application
thereof set forth in subsection 1.2, generally accepted accounting principles
set forth in opinions and pronouncements of the Accounting Principles Board of
the American Institute of Certified Public Accountants and statements and
pronouncements of the Financial Accounting Standards Board or in such other
statements by such other entity as may be approved by a significant segment of
the accounting profession, in each case as the same are applicable to the
circumstances as of the date of determination.

                  "GECC STOCK PURCHASE AGREEMENT" means that certain Stock
Purchase Agreement dated September 7, 1999 by and between GECC and Borrower.

                  "GOVERNMENTAL AUTHORIZATION" means any permit, license,
authorization, plan, directive, consent order or consent decree of or from any
federal, state or local governmental authority, agency or court.

                                       10
<PAGE>   17

                  "HAZARDOUS MATERIALS" means (i) any chemical, material or
substance at any time defined as or included in the definition of "hazardous
substances", "hazardous wastes", "hazardous materials", "extremely hazardous
waste", "acutely hazardous waste", "radioactive waste", "biohazardous waste",
"pollutant", "toxic pollutant", "contaminant", "restricted hazardous waste",
"infectious waste", "toxic substances", or any other term or expression intended
to define, list or classify substances by reason of properties harmful to
health, safety or the indoor or outdoor environment (including harmful
properties such as ignitability, corrosivity, reactivity, carcinogenicity,
toxicity, reproductive toxicity, "TCLP toxicity" or "EP toxicity" or words of
similar import under any applicable Environmental Laws); (ii) any oil,
petroleum, petroleum fraction or petroleum derived substance; (iii) any drilling
fluids, produced waters and other wastes associated with the exploration,
development or production of crude oil, natural gas or geothermal resources;
(iv) any flammable substances or explosives; (v) any radioactive materials; (vi)
any asbestos-containing materials; (vii) urea formaldehyde foam insulation;
(viii) electrical equipment which contains any oil or dielectric fluid
containing polychlorinated biphenyls; (ix) pesticides; and (x) any other
chemical, material or substance, exposure to which is prohibited, limited or
regulated by any governmental authority pursuant to applicable Environmental
Laws.

                  "HAZARDOUS MATERIALS ACTIVITY" means any past, current,
proposed or threatened activity, event or occurrence involving any Hazardous
Materials which is regulated pursuant to applicable Environmental Laws,
including the use, manufacture, possession, storage, holding, presence,
existence, location, Release, threatened Release, discharge, placement,
generation, transportation, processing, construction, treatment, abatement,
removal, remediation, disposal, disposition or handling of any Hazardous
Materials, and any corrective action or response action with respect to any of
the foregoing.

                  "HOLDINGS" means ViaSource Holdings, Inc., a Delaware
corporation.

                  "HOLDINGS PLEDGE AGREEMENT" means the Holdings Pledge
Agreement executed and delivered by Holdings on the Initial Effective Date,
substantially in the form of Exhibit XI annexed hereto, as such agreement may
thereafter be amended, supplemented or otherwise modified from time to time as
permitted thereunder and hereunder.

                  "INACTIVE SUBSIDIARY" means the Subsidiaries identified on
Schedule 4.1(d) hereto as inactive.

                  "INDEBTEDNESS", as applied to any Person, means (i) all
indebtedness for borrowed money, (ii) that portion of obligations with respect
to Capital Leases that is properly classified as a liability on a balance sheet
in conformity with GAAP, (iii) notes payable and drafts accepted representing
extensions of credit whether or not representing obligations for borrowed money,
(iv) any obligation owed for all or any part of the deferred purchase price of
property or services (excluding any such obligations incurred under ERISA),
which purchase price is (a) due more than six months from the date of incurrence
of the obligation in respect thereof or (b) evidenced by a note or similar

                                       11
<PAGE>   18

written instrument, and (v) all indebtedness secured by any Lien on any property
or asset owned or held by that Person regardless of whether the indebtedness
secured thereby shall have been assumed by that Person or is nonrecourse to the
credit of that Person. Obligations under Interest Rate Agreements constitute
Contingent Obligations, not Indebtedness.

                  "INDEMNIFIED LIABILITIES" has the meaning assigned to that
term in subsection 8.3.

                  "INDEMNITEE" has the meaning assigned to that term in
subsection 8.3.

                  "INITIAL EFFECTIVE DATE" means September 7, 1999.

                  "INITIAL INVESTORS" means Crest, Jackson National Life
Insurance Company, Old Hickory Fund I, LLC, and BancBoston Investments Inc.

                  "INITIAL PUBLIC OFFERING" means an underwritten public
offering of the common stock of the Borrower that generates cash proceeds to the
Borrower of at least $50,000,000, pursuant to which the Term Loan is repaid in
full upon the consummation (and with the proceeds) thereof.

                  "INTELLECTUAL PROPERTY" means all patents, trademarks,
tradenames, copyrights, technology, know-how and processes used in and necessary
for the conduct of the business of Borrower and its Subsidiaries as currently
conducted that are material to the condition (financial or otherwise), business
or operations of Borrower and its Subsidiaries, taken as a whole.

                  "INTEREST PERIOD" has the meaning assigned to that term in
subsection 2.2(b).

                  "INTEREST RATE AGREEMENT" means any interest rate swap
agreement, interest rate cap agreement, interest rate collar agreement or other
similar agreement or arrangement to which Borrower or any of its Subsidiaries is
a party.

                  "INTEREST RATE DETERMINATION DATE" means, with respect to any
Interest Period, the second Business Day prior to the first day of such Interest
Period.

                  "INTERNAL REVENUE CODE" means the Internal Revenue Code of
1986, as amended to the Initial Effective Date and from time to time thereafter,
any successor statute and the Treasury regulations promulgated under the
Internal Revenue Code.

                  "INVESTMENT" means (i) any direct or indirect purchase or
other acquisition by any Loan Party of, or of a beneficial interest in, any
Securities of any other Person (other than a Person that prior to such purchase
or acquisition was a wholly-owned Subsidiary of such Loan Party), (ii) any
direct or indirect redemption, retirement, purchase or other acquisition for
value, by any Subsidiary of Borrower from any Person other than any Loan Party,
of any equity Securities of such Loan Party, or (iii) any direct or indirect
loan, advance (other than advances to employees for moving, entertainment

                                       12
<PAGE>   19

and travel expenses, drawing accounts and similar expenditures in the ordinary
course of business) or capital contribution by Borrower or any of its
Subsidiaries to any other Person (other than a wholly-owned Subsidiary of
Borrower), including all indebtedness and accounts receivable from that other
Person that are not current assets or did not arise from sales to that other
Person in the ordinary course of business. The amount of any Investment shall be
the original cost of such Investment plus the cost of all additions thereto
minus, all cash returns of principal on such investment, without any adjustments
for increases or decreases in value, or write-ups, write-downs or write-offs
with respect to such Investment.

                  "INVESTOR GROUP" means the Initial Investors and the New
Investors.

                  "ISSUANCE" means the issuance by any Loan Party of
Indebtedness for borrowed money (other than the Obligations) or any equity
security.

                  "JOINT VENTURE" means a joint venture, partnership or other
similar arrangement, whether in corporate, partnership or other legal form;
provided that in no event shall any corporate Subsidiary of any Person be
considered to be a Joint Venture to which such Person is a party.

                  "LANDLORD CONSENT" means, with respect to any Material
Leasehold Property, a letter from the owner of such property substantially in
the form of Exhibit XII, annexed hereto, satisfactory in form and substance to
Lender, pursuant to which such owner agrees, for the benefit of Lender, (i) that
without any further consent of such owner or any further action on the part of
the Loan Party holding such Material Leasehold Property, such Material Leasehold
Property may be encumbered pursuant to a Mortgage and may be assigned to the
purchaser at a foreclosure sale or in a transfer in lieu of such a sale (and to
a subsequent third party assignee if Lender, or an Affiliate of Lender so
acquires such Material Leasehold Property), (ii) that such owner shall not
terminate such lease as a result of a default by such Loan Party thereunder
without first giving Lender notice of such default and at least 60 days (or, if
such default cannot reasonably be cured by Lender within such period, such
longer period as may reasonably be required) to cure such default and (iii) to
such other matters relating to such Material Leasehold Property as Lender may
reasonable request.

                  "L/C ISSUER" has the meaning assigned to that term in
subsection 2.3(a).

                  "L/C SUBLIMIT" has the meaning assigned to that term in
subsection 2.3(a).

                  "LENDER" means General Electric Capital Corporation, together
with its successors and permitted assigns pursuant to subsection 8.1.

                  "LETTER OF CREDIT" means a commercial or standby letter of
credit issued for the account of Borrower by any L/C Issuer, or a banker's
acceptance issued by Borrower, for which Lender has incurred Letter of Credit
Obligations, and "LETTERS OF CREDIT" means all such Letters of Credit.

                                       13
<PAGE>   20

                  "LETTER OF CREDIT FEE" has the meaning assigned to that term
in subsection 2.3(d).

                  "LETTER OF CREDIT OBLIGATIONS" means all outstanding
obligations incurred by Lender at the request of Borrower, whether direct or
indirect, contingent or otherwise, due or not due, in connection with the
issuance of a reimbursement agreement or guaranty by Lender with respect to any
Letter of Credit. The amount of such Letter of Credit Obligations shall equal
the maximum amount which may be payable by Lender thereupon or pursuant thereto.

                  "LIBOR RATE LOAN" means a Loan bearing interest at rates
determined by reference to the Adjusted LIBOR Rate as provided in subsection
2.2(a).

                  "LIEN" means any lien, mortgage, pledge, assignment, security
interest, charge or encumbrance of any kind (including any conditional sale or
other title retention agreement, any lease in the nature thereof, and any
agreement to give any security interest) and any option, trust or other
preferential arrangement having the practical effect of any of the foregoing.

                  "LOAN" means the Term Loan or the Revolving Loan, and "LOANS"
means the Term Loan and the Revolving Loan, collectively.

                  "LOAN DOCUMENTS" means this Agreement, the Term Note, the
Revolving Note, each Letter of Credit, each reimbursement agreement or guaranty
by Lender with respect to any Letter of Credit, the Security Documents and all
the other agreements, certificates of similar documents executed by a Loan Party
hereunder or thereunder.

                  "LOAN PARTY" means Borrower and its current and future
Subsidiaries but excluding Inactive Subsidiaries from time to time executing a
Loan Document, and "LOAN PARTIES" means all such Persons, collectively.

                  "MANAGEMENT FEES" means any fee or other form of compensation
to any member of the Investor Group (or any Affiliate of any member of the
Investor Group) in compensation for services rendered or goods provided to
Borrower or any Subsidiary thereof.

                  "MARGIN STOCK" has the meaning assigned to that term in
Regulation U of the Board of Governors of the Federal Reserve System as in
effect from time to time.

                  "MATERIAL ADVERSE EFFECT" means (i) a material adverse effect
upon the business, operations, properties, assets, liabilities, condition
(financial or otherwise) or prospects of Borrower and its Subsidiaries (taken as
a whole) or (ii) the impairment of the ability of any Loan Party to perform, or
of Lender to enforce, the Obligations.

                  "MATERIAL CONTRACT" means any contract or other arrangement to
which Borrower or any of its Subsidiaries is a party (other than the Loan
Documents) for which breach, nonperformance, cancellation or failure to renew
could have a Material Adverse Effect.

                                       14
<PAGE>   21

                  "MATERIAL LEASEHOLD PROPERTY" means any leasehold interest of
any Loan Party as lessee under any lease of real property set forth on Schedule
4.5 annexed hereto, and any other leasehold interest designated from time to
time by Lender in its reasonable discretion as being required to be included in
the Collateral that is designated by Lender as a "Material Leasehold Property"
from time to time.

                  "MERGER AGREEMENT" means that certain Agreement and Plan of
Merger, dated as of July 23, 1999, among Borrower, CRI Acquisition Corp., CRI
and Crest/CRI LLC, pursuant to which Borrower acquired through merger the
capital stock of CRI.

                  "MORTGAGE" means a security instrument (whether designated as
a deed of trust or a mortgage or by any similar title) executed and delivered by
any Loan Party as such instrument may be amended, supplemented or otherwise
modified from time to time as permitted thereunder and hereunder.

                  "MULTIEMPLOYER PLAN" means any Employee Benefit Plan which is
a "multiemployer plan" as defined in Section 3(37) of ERISA.

                  "NET CASH PROCEEDS" means, with respect to any Asset Sale or
Issuance, the cash proceeds received by the Loan Parties in connection with such
transaction or transaction, minus the reasonable costs and expenses incurred in
connection therewith.

                  "NET INSURANCE/CONDEMNATION PROCEEDS" means any Cash payments
or proceeds received by Borrower or any of its Subsidiaries (i) under any
business interruption or casualty insurance policy in respect of a covered loss
thereunder or (ii) as a result of the taking of any assets of Borrower or any of
its Subsidiaries by any Person pursuant to the power of eminent domain,
condemnation or otherwise, or pursuant to a sale of any such assets to a
purchaser with such power under threat of such a taking, in each case net of any
actual and reasonable documented costs incurred by Borrower or any of its
Subsidiaries in connection with the adjustment or settlement of any claims of
Borrower or such Subsidiary in respect thereof.

                  "NEW EFFECTIVE DATE" means the date on or before March __,
2000 on which the conditions set forth in subsection 3.2 are satisfied.

                  "NEW INVESTORS" means PNC Equity Management, Wood Street
Partner, II and General Electric Capital Corporation.

                  "NOTE" means the Term Note or the Revolving Note, and "NOTES"
means the Term Note and the Revolving Note, collectively.

                  "NOTICE OF BORROWING" means, with respect to the Revolving
Note, a notice substantially in the form of Exhibit I-b annexed hereto delivered
by Borrower to Lender pursuant to subsection 2.1(d) with respect to a proposed
Revolving Advance.

                  "NOTICE OF CONVERSION/CONTINUATION" means a notice
substantially in the form of Exhibit II annexed hereto delivered by Borrower to
Lender pursuant to

                                       15
<PAGE>   22

subsection 2.2(d) with respect to a proposed conversion or continuation of the
applicable basis for determining the interest rate with respect to a Loan and
specified therein.

                  "OBLIGATIONS" means all obligations of every nature of each
Loan Party from time to time owed to Lender under the Loan Documents, whether
for principal, interest, fees, expenses, reimbursement (with respect to Letters
of Credit or otherwise) indemnification or otherwise.

                  "OFFICER'S CERTIFICATE" means, as applied to any corporation,
a certificate executed on behalf of such corporation by its president or chief
financial officer; provided, that every Officer's Certificate with respect to
the compliance with a condition precedent to the making of the Loans hereunder
shall include (i) a statement that the officer or officers making or giving such
Officer's Certificate have read such condition and any definitions or other
provisions contained in this Agreement relating thereto, (ii) a statement that,
in the opinion of the signers, they have made or have caused to be made such
examination or investigation as is necessary to enable them to express an
informed opinion as to whether or not such condition has been complied with, and
(iii) a statement as to whether, in the opinion of the signers, such condition
has been complied with.

                  "O'LEARY SELLER NOTE" means that certain Subordinated
Promissory Note in the initial principal amount of $1,538,932 issued by Borrower
in favor of George O'Leary on January 3, 2000.

                  "OPERATING LEASE" means, as applied to any Person, any lease
(including leases that may be terminated by the lessee at any time) of any
property (whether real, personal or mixed) that is not a Capital Lease other
than any such lease under which that Person is the lessor.

                  "ORIGINAL CREDIT AGREEMENT" has the meaning set forth in the
recitals hereto.

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

                  "PENSION PLAN" means any Employee Benefit Plan, other than a
Multiemployer Plan, which is subject to Section 412 of the Internal Revenue Code
or Section 302 of ERISA.

                  "PERMITTED ACQUISITION" means one or more related acquisitions
of specified assets or no less than 80% of the issued and outstanding stock of a
Person (other than a natural person or an Affiliate of a Loan Party), in each
case, that is directly engaged (or, in the case of a holding company, whose
Subsidiary is directly engaged) in the business of providing communication
services on an outsourced basis and related activities, and that, at the time of
such acquisition, would not result in the occurrence of a Default hereunder (and
is effectuated at such time as no other Event of Default is continuing
hereunder).

                                       16
<PAGE>   23

                  "PERMITTED ENCUMBRANCES" means the following types of Liens
(excluding any such Lien imposed pursuant to Section 401(a)(29) or 412(n) of the
Internal Revenue Code or by ERISA, any such Lien relating to or imposed in
connection with any Environmental Claim, and any such Lien expressly prohibited
by any applicable terms of any of the Security Documents):

                           (a) Liens for taxes, assessments or governmental
         charges or claims the payment of which is not, at the time, required by
         subsection 5.3;

                           (b) statutory Liens of landlords, statutory Liens of
         banks and rights of set-off, statutory Liens of carriers, warehousemen,
         mechanics, repairmen, workmen and materialmen, and other Liens imposed
         by law, in each case incurred in the ordinary course of business (a)
         for amounts not yet overdue or (b) for amounts that are overdue and
         that (in the case of any such amounts overdue for a period in excess of
         5 days) are being contested in good faith by appropriate proceedings,
         so long as (1) such reserves or other appropriate provisions, if any,
         as shall be required by GAAP shall have been made for any such
         contested amounts, and (2) in the case of a Lien with respect to any
         portion of the Collateral, such contest proceedings conclusively
         operate to stay the sale of any portion of the Collateral on account of
         such Lien;

                           (c) Liens incurred or deposits made in the ordinary
         course of business in connection with workers' compensation,
         unemployment insurance and other types of social security, or to secure
         the performance of tenders, statutory obligations, surety and appeal
         bonds, bids, leases, government contracts, trade contracts, performance
         and return-of-money bonds and other similar obligations (exclusive of
         obligations for the payment of borrowed money), so long as no
         foreclosure, sale or similar proceedings have been commenced with
         respect to any portion of the Collateral on account thereof;

                           (d) any attachment or judgment Lien not constituting
         an Event of Default under subsection 7.8;

                           (e) leases or subleases granted to third parties in
         accordance with any applicable terms of the Security Documents and not
         interfering in any material respect with the ordinary conduct of the
         business of Borrower or any of its Subsidiaries or resulting in a
         material diminution in the value of any Collateral as security for the
         Obligations;

                           (f) easements, rights-of-way, restrictions,
         encroachments, and other minor defects or irregularities in title, in
         each case which do not and will not interfere in any material respect
         with the ordinary conduct of the business of Borrower or any of its
         Subsidiaries or result in a material diminution in the value of any
         Collateral as security for the Obligations;

                                       17
<PAGE>   24

                           (g) Liens arising from the filing of UCC financing
         statements for informational purposes in connection with operating
         leases entered into by any Loan Party;

                           (h) Liens in favor of customs and revenue authorities
         arising as a matter of law to secure payment of customs duties in
         connection with the importation of goods;

                           (i) any zoning or similar law or right reserved to or
         vested in any governmental office or agency to control or regulate the
         use of any real property;

                           (j) Liens securing obligations (other than
         obligations representing Indebtedness for borrowed money) under
         operating, reciprocal easement or similar agreements entered into in
         the ordinary course of business of Borrower and its Subsidiaries; and

                           (k) licenses of patents, trademarks and other
         intellectual property rights granted by Borrower or any of its
         Subsidiaries in the ordinary course of business and not interfering in
         any material respect with the ordinary conduct of the business of
         Borrower or such Subsidiary.

                  "PERMITTED EQUITY FINANCING" means an Issuance of any equity
security by Borrower, the Net Cash Proceeds of which are utilized exclusively to
finance a Permitted Acquisition.

                  "PERMITTED LIENS" means Liens permitted pursuant to subsection
6.2(a).

                  "PERMITTED SUBORDINATED DEBT FINANCING" means an Issuance of
Indebtedness for borrowed money by Borrower, the Net Cash Proceeds of which are
utilized exclusively to finance a Permitted Acquisition, SO LONG AS, as of the
date of incurrence thereof, any such Indebtedness contains subordination
provisions no less favorable to Lender as those set forth in Exhibit XVI annexed
hereto and pursuant to documentation containing interest rates, maturities,
redemption provisions, covenants, defaults, remedies and subordination
provisions reasonably acceptable to Lender.

                  "PERSON" means and includes natural persons, corporations,
limited partnerships, general partnerships, limited liability companies, limited
liability partnerships, joint stock companies, Joint Ventures, associations,
companies, trusts, banks, trust companies, land trusts, business trusts or other
organizations, whether or not legal entities, and governments (whether federal,
state or local, domestic or foreign, and including political subdivisions
thereof) and agencies or other administrative or regulatory bodies thereof.

                  "PLEDGE AGREEMENTS" means the Borrower Pledge Agreement and
the Holdings Pledge Agreement.

                                       18
<PAGE>   25

                  "PLEDGED COLLATERAL" means the "Pledged Collateral" as defined
in the Borrower Pledge Agreement and the Holdings Pledge Agreement.

                  "PNC STOCK PURCHASE AGREEMENT" means that certain Stock
Purchase Agreement dated September 7, 1999 by and between PNC Capital Corp. and
Wood Street Partners, II and Borrower.

                  "PRIME RATE" means, for any day, a floating rate equal to the
rate publicly quoted from time to time by The Wall Street Journal as the "base
rate on corporate loans at large U.S. money center commercial banks" (or, if The
Wall Street Journal ceases quoting a base rate of the type described, the
highest per annum rate of interest published by the Federal Reserve Board in
Federal Reserve statistical release H.15(519) entitled "Selected Interest Rates"
as the Bank prime loan rate or its equivalent). Each change in any interest rate
provided for in this Agreement based upon the Prime Rate shall take effect at
the time of such change in the Prime Rate.

                  "REGULATION D" means Regulation D of the Board of Governors of
the Federal Reserve System, as in effect from time to time.

                  "RELATED DOCUMENTS" means, collectively, Merger Agreement, the
PNC Stock Purchase Agreement, the GECC Stock Purchase Agreement and the
Telecrafter Purchase Agreement.

                  "RELEASE" means any release, spill, emission, leaking,
pumping, pouring, injection, escaping, deposit, disposal, discharge, dispersal,
dumping, leaching or migration of Hazardous Materials into the indoor or outdoor
environment (including the abandonment or disposal of any barrels, containers or
other closed receptacles containing any Hazardous Materials), including the
movement of any Hazardous Materials through the air, soil, surface water or
groundwater.

                  "RESTRICTED JUNIOR PAYMENT" means (i) any dividend or other
distribution, direct or indirect, on account of any shares of any class of stock
of Borrower now or hereafter outstanding, except a dividend payable solely in
shares of that class of stock to the holders of that class, (ii) any redemption,
retirement, sinking fund or similar payment, purchase or other acquisition for
value, direct or indirect, of any shares of any class of stock of Borrower now
or hereafter outstanding, (iii) any payment made to retire, or to obtain the
surrender of, any outstanding warrants, options or other rights to acquire
shares of any class of stock of Borrower now or hereafter outstanding, (iv) any
payment or prepayment of principal of, premium if any, or interest on, or
redemption, purchase, retirement, defeasance (including in-substance or legal
defeasance), sinking fund or similar payment with respect to any Subordinated
Indebtedness and (v) any payment of principal or interest with respect to the
Seller Notes.

                  "REVOLVING ADVANCE" has the meaning assigned to that term in
subsection 2.1(c).

                  "REVOLVING COMMITMENT" means the commitment of Lender to make
Revolving Advances and incur Letter of Credit Obligations, which aggregate

                                       19
<PAGE>   26

commitment shall be $15,000,000 on the New Effective Date, as such amount may be
adjusted downward, if at all, from time to time in accordance with this
Agreement.

                  "REVOLVING LOAN" means at any time, the sum of (i) the
aggregate amount of Revolving Advances outstanding to Borrower plus (ii) the
aggregate Letter of Credit Obligations incurred on behalf of Borrower.

                  "REVOLVING NOTE" has the meaning assigned to that term in
subsection 2.1(e).

                  "SECURITIES" means any stock, shares, partnership interests,
voting trust certificates, certificates of interest or participation in any
profit-sharing agreement or arrangement, options, warrants, bonds, debentures,
notes, or other evidences of indebtedness, secured or unsecured, convertible,
subordinated or otherwise, or in general any instruments commonly known as
"securities" or any certificates of interest, shares or participations in
temporary or interim certificates for the purchase or acquisition of, or any
right to subscribe to, purchase or acquire, any of the foregoing.

                  "SECURITIES ACT" means the Securities Act of 1933, as amended
from time to time, and any successor statute.

                  "SECURITY AGREEMENTS" means the Borrower Security Agreement
and the Subsidiary Security Agreements.

                  "SECURITY DOCUMENTS" means the Borrower Pledge Agreement (and
the bailee letter relating thereto), the Borrower Security Agreement, the
Subsidiary Guaranties, the Subsidiary Security Agreements, the Holdings Pledge
Agreement and all other instruments or documents delivered by any Loan Party
pursuant to this Agreement or any of the other Loan Documents in order to grant
to Lender a Lien on any real, personal or mixed property of that Loan Party as
security for the Obligations.

                  "SELLER NOTES" means (i) that certain Subordinated Promissory
Note in the initial principal amount of $3,000,000, dated September 7, 1999, and
issued by Telecrafter Acquisition Corp. in favor of Nassau Communications, Inc.
and (ii) any other note issued by Borrower to the seller of assets or equity
interests in connection with a Permitted Acquisition that contains subordination
provisions no less favorable to Lender as those set forth in Exhibit XVI annexed
hereto.

                  "SENIOR CREDIT AGREEMENTS" means:

                           (1) the Letter of Credit, Term Loan, Equipment Loan
         and Revolving Line of Credit Loan and Security Agreement, dated June
         27, 1997, between Statewide Savings Bank, S.L.A., and RTK Corporation,
         Queens Cable Contractors, Inc., The RTK Group, Inc. (the corporate
         predecessor of Borrower), Wireless Cable Contractors, Inc., Roy D.
         Tartaglia and Richard A. Thomas, as amended by the First Amendment
         thereto, dated February 11, 1999,

                                       20
<PAGE>   27

                           (2) the Promissory Notes, dated, February 12, 1999,
         July 27, 1998 and December 22, 1998, issued by RTK Group, Inc.(the
         corporate predecessor of Borrower) and Queens Cable Contractors, Inc.
         in favor of 1st Constitution Bank,

                           (3) the Loan and Security Agreement, dated July 14,
         1998, by and among Congress Financial Corporation and Communication
         Resources Incorporated, CRI Recoveries, L.P., CRI of Broward, L.P., Los
         Angeles CRI, L.L.C., Texas CRI, L.L.C., Pennsylvania CRI, L.L.C., and
         South Carolina CRI, L.L.C.,

                           (4) Agreement dated June 10, 1999 between Norwest
         Bank Colorado N.A. and Telecrafter; and

                           (5) The reimbursement obligation of CRI and CRI of
         Cherry Hill, Inc. to First Union Bank with respect to the First Union
         L/C.

                  "SOLVENT" means, with respect to any Person, that as of the
date of determination both (A)(i) the then fair saleable value of the property
of such Person is (y) greater than the total amount of liabilities (including
contingent liabilities) of such Person and (z) not less than the amount that
will be required to pay the probable liabilities on such Person's then existing
debts as they become absolute and matured considering all financing alternatives
and potential asset sales reasonably available to such Person; (ii) such
Person's capital is not unreasonably small in relation to its business or any
contemplated or undertaken transaction; and (iii) such Person does not intend to
incur, or believe (nor should it reasonably believe) that it will incur, debts
beyond its ability to pay such debts as they become due; and (B) such Person is
"solvent" within the meaning given that term and similar terms under applicable
laws relating to fraudulent transfers and conveyances. For purposes of this
definition, the amount of any contingent liability at any time shall be computed
as the amount that, in light of all of the facts and circumstances existing at
such time, represents the amount that can reasonably be expected to become an
actual or matured liability.

                  "STATED MATURITY DATE" means September 7, 2004.

                  "STOCKHOLDERS' AGREEMENT" means the Stockholders' Agreement in
substantially the form of Exhibit XV annexed hereto.

                  "STOCK PURCHASE AGREEMENT" means those Stock Purchase
Agreements, each dated as of September 7, 1999 by and between each of the New
Investors and Borrower, pursuant to which Borrower received from the New
Investors $5,000,000 in capital contributions, which capital contributions were
utilized to pay in full all amounts outstanding under the Bridge Loan on the
Initial Effective Date.

                  "SUBORDINATED INDEBTEDNESS" means any Indebtedness of any Loan
Party subordinated in right of payment to the Obligations pursuant to
documentation containing maturities, amortization schedules, covenants,
defaults, remedies, subordination

                                       21
<PAGE>   28

provisions and other material terms in form and substance reasonably
satisfactory to Lender.

                  "SUBSIDIARY" means (i) with respect to any Person, any
corporation, partnership, limited liability company, association, joint venture
or other business entity of which more than 50% of the total voting power of
shares of stock or other ownership interests entitled (without regard to the
occurrence of any contingency) to vote in the election of the Person or Persons
(whether directors, managers, trustees or other Persons performing similar
functions) having the power to direct or cause the direction of the management
and policies thereof is at the time owned or controlled, directly or indirectly,
by that Person or one or more of the other Subsidiaries of that Person or a
combination thereof, and (ii) with respect to Borrower and its Subsidiaries
after the New Effective Date, such Persons acquired or formed as a "Subsidiary"
in compliance with the provisions of Section 6.8 hereof, and (iii) on the New
Effective Date, the following Persons are Subsidiaries of the Borrower:

                                    (i)     CRI;
                                    (ii)    Telecrafter Acquisition Corp.,a
                                            Delaware corporation;
                                    (iii)   RTK Corporation, a New Jersey
                                            corporation;
                                    (iv)    RT/Katek Communications Group of
                                            Puerto Rico, a Puerto Rico
                                            corporation;
                                    (v)     Queens Cable Contractors Inc., a New
                                            Jersey corporation;
                                    (vi)    The Drop Depot, Inc., a New Jersey
                                            corporation;
                                    (vii)   CRI of Cherry Hill, Inc., a Delaware
                                            corporation;
                                    (viii)  PC Network Solutions, Inc., a
                                            Delaware corporation; and
                                    (ix)    Holdings.

                  "SUBSIDIARY GUARANTOR" means each Domestic Subsidiary of
Borrower (excluding any Inactive Subsidiary), and "SUBSIDIARY GUARANTORS" means
all such Subsidiary Guarantors.

                  "SUBSIDIARY GUARANTY" means, collectively (i) the Subsidiary
Guaranty executed and delivered by each Subsidiary Guarantor (other than
Holdings) on the Initial Effective Date, substantially in the form of Exhibit
IX-A, and (ii) the Holdings Guaranty executed and delivered by Holdings on the
Initial Effective Date, substantially in the form of Exhibit IX-B annexed
hereto, as such guaranties may thereafter be amended, supplemented or otherwise
modified from time to time as permitted thereunder and hereunder.

                  "SUBSIDIARY SECURITY AGREEMENT" means, the Subsidiary Security
Agreement executed and delivered by each Subsidiary Guarantor on the Initial
Effective Date, substantially in the form of Exhibit X annexed hereto, relating
to the Collateral owned by such each such Subsidiary, as such agreement may
thereafter be amended,

                                       22
<PAGE>   29

supplemented or otherwise modified from time to time as permitted thereunder and
hereunder.

                  "TAX" or "TAXES" means any present or future tax, levy,
impost, duty, charge, fee, deduction or withholding of any nature and whatever
called, by whomsoever, on whomsoever and wherever imposed, levied, collected,
withheld or assessed; provided, that "Tax on the overall net income" of a Person
shall be construed as a reference to a tax imposed by the jurisdiction in which
that Person is organized or in which that Person's principal office (and/or, in
the case of Lender, its lending office) is located or in which that Person
(and/or, in the case of Lender, its lending office) is deemed to be doing
business on all or part of the net income, profits or gains (whether worldwide,
or only insofar as such income, profits or gains are considered to arise in or
to relate to a particular jurisdiction, or otherwise) of that Person (and/or, in
the case of Lender, its lending office).

                  "TAX BENEFIT" has the meaning assigned to that term in
subsection 2.8(b).

                  "TAX SHARING AGREEMENT" means the Tax Sharing Agreement in
substantially the form of Exhibit XVII annexed hereto, as such agreement may
thereafter be amended, supplemented or otherwise modified from time to time as
permitted thereunder and hereunder.

                  "TELECRAFTER" means Nassau Communications, Inc. (doing
business as Telecrafter Services Corporation), together with its successors and
assigns.

                  "TELECRAFTER ACQUISITION" means the acquisition by Telecrafter
Acquisition Corp. of certain assets of Telecrafter pursuant to the Telecrafter
Purchase Agreement.

                  "TELECRAFTER PURCHASE AGREEMENT" means that certain Asset
Purchase Agreement, dated as of July 28, 1999, among Borrower, Telecrafter
Acquisition Corp., Telecrafter, Bruce A. Nassau and Lurie S. Nassau.

                  "TERM LOAN" means the term loan made by Lender to Borrower
pursuant to subsection 2.1(a) on the Initial Effective Date.

                  "TERM NOTE" means (i) the promissory term note of Borrower
issued to Lender on the Initial Effective Date and (ii) any promissory notes
issued by Borrower pursuant to the last sentence of subsection 8.1(b) in
connection with assignments of the Term Loan of Lender, in each case,
substantially in the form of Exhibit III annexed hereto, as they may be amended,
supplemented or otherwise modified from time to time.

                  "TERMINATION DATE" means the earlier of (i) the Stated
Maturity Date, or (ii) the date on which the Loans and other Obligations are
declared immediately due and payable in accordance with Section 7.

                                       23
<PAGE>   30

                  "TOTAL LEVERAGE RATIO" means, as of any date of determination,
the ratio of (i) Consolidated Total Debt as of such date to (ii) EBITDA for the
twelve consecutive month period most recently ended.

                  "UCC" means the Uniform Commercial Code (or any similar or
equivalent legislation) as in effect in any applicable jurisdiction.

                  "WARRANT" means that certain warrant, dated September 7,
1999,in the form attached as Exhibit XVIII annexed hereto, issued to General
Electric Capital Corporation to purchase shares of common stock of Borrower,
pursuant to that certain Stock and Warrant Purchase Agreement dated as of
September 7, 1999.

                  "YEAR 2000 COMPLIANT" means, in regard to any Person, that all
software, hardware, firmware, computer equipment and goods, or computer systems
under such Person's control and material to the business operations or financial
condition of such Person, will properly perform without error relating to date
data during and after the year 2000.

                  1.2 ACCOUNTING TERMS; UTILIZATION OF GAAP FOR PURPOSES OF
CALCULATIONS UNDER AGREEMENT.

                  Except as otherwise expressly provided in this Agreement, all
accounting terms not otherwise defined herein shall have the meanings assigned
to them in conformity with GAAP. Financial statements and other information
required to be delivered by Borrower to Lender pursuant to clauses (i), (ii) and
(iii) of subsection 5.1 shall be prepared in accordance with GAAP as in effect
at the time of such preparation (and delivered together with the reconciliation
statements provided for in subsection 5.1(v)). Calculations in connection with
the definitions, covenants and other provisions of this Agreement shall utilize
accounting principles and policies in conformity with those used to prepare the
financial statements referred to in subsection 4.3.

                  1.3 OTHER DEFINITIONAL PROVISIONS AND RULES OF CONSTRUCTION.

                           (a) Any of the terms defined herein may, unless the
         context otherwise requires, be used in the singular or the plural,
         depending on the reference.

                           (b) References to "Sections" and "subsections" shall
         be to Sections and subsections, respectively, of this Agreement unless
         otherwise specifically provided.

                           (c) The use in any of the Loan Documents of the word
         "include" or "including", when following any general statement, term or
         matter, shall not be construed to limit such statement, term or matter
         to the specific items or matters set forth immediately following such
         word or to similar items or matters, whether or not nonlimiting
         language (such as "without limitation" or "but not limited to" or words
         of similar import) is used with reference thereto, but

                                       24
<PAGE>   31

         rather shall be deemed to refer to all other items or matters that fall
         within the broadest possible scope of such general statement, term or
         matter.

                           (d) All references contained herein to this
         Agreement, any other Loan Document, any Related Document or any other
         agreement or other instrument shall be a reference to such agreement or
         instrument as it may be amended, restated, supplemented, replaced or
         otherwise in a different form from time to time in accordance with the
         terms thereof and hereof.

                                   SECTION 2.
                                    THE LOAN

                  2.1 MAKING OF LOANS; NOTES.

                           (a) THE TERM LOAN. Pursuant to the terms and
         conditions of the Original Credit Agreement and in reliance upon the
         representations and warranties of Borrower therein set forth, on the
         Initial Effective Date Lender made a Term Loan to Borrower in the
         amount of $15,000,000, which Term Loan is evidenced by a Term Note
         delivered by Borrower to Lender substantially in the form of Exhibit
         III-a annexed hereto. On the New Effective Date, the outstanding
         principal amount outstanding on the Term Loan is $15,000,000.

                           (b) ALLOCATION. On the Initial Effective Date,
         Borrower delivered to Lender the Warrant simultaneously with the
         delivery of the Note. In order to establish the "issue price" within
         the meaning of section 1273(b) of the Internal Revenue Code of 1986, as
         amended (the "CODE"), and the regulations issued thereunder, of the
         Term Note, and for all other purposes of the Code, Borrower and Lender
         agree that the amount of the Term Loan allocated to the Warrant shall
         be $1,500,000 and the amount of the Term Loan allocated to the Term
         Note shall be $13,500,000.

                           (c) THE REVOLVING CREDIT FACILITY. Subject to the
         terms and conditions of this Agreement and in reliance upon the
         representations and warranties of Borrower herein set forth, Lender
         agrees to make advances available to Borrower from time to time until
         the Termination Date (each, a "REVOLVING ADVANCE"). The Revolving Loan
         shall not at any time exceed the Revolving Commitment. Until the
         Termination Date, Borrower may from time to time borrow, repay and
         reborrow under this Section 2.1(c).

                           (d) BORROWING MECHANICS. Except with respect to
         automatic Revolving Advances made pursuant to subsection 2.3(b),
         Borrower shall deliver to Lender a Notice of Borrowing no later than
         10:00 A.M. (New York time) at least three Business Days in advance of
         the date of each proposed Revolving Advance (in the case of a LIBOR
         Rate Loan) or at least one Business Day in advance of of the date of
         each proposed Revolving Advance (in the case of a Base Rate Loan). A
         Revolving Advance may be continued as or converted into a Base Rate
         Loan and LIBOR Rate Loan in the manner provided in subsection 2.2(d).

                                       25
<PAGE>   32

         Each Notice of Borrowing must be given in writing (by telecopy or
         overnight courier) and shall include the information required in such
         Exhibit I-b and such other information as may be required by Lender. If
         Borrower desires to have the Revolving Advances bear interest by
         reference to a LIBOR Rate, it must comply with the provisions of
         subsection 2.2, including subsection 2.2(d).

                           (e) REVOLVING NOTE. Borrower shall execute and
         deliver on the New Effective Date to Lender a Note substantially in the
         form of Exhibit III-b annexed hereto to evidence the Revolving Loan
         (the "REVOLVING NOTE"). The Revolving Note shall represent the
         obligation of Borrower to pay the amount of the aggregate unpaid
         principal amount of all Revolving Advances to Borrower together with
         interest thereon set forth herein and therein. The entire unpaid
         balance of the Revolving Loan and all other non-contingent Obligations
         shall be immediately due and payable in full in immediately available
         funds on the Termination Date.

                  2.2      INTEREST ON THE LOANS.

                           (a) RATE OF INTEREST. Subject to the provisions of
         subsections 2.7 and 2.8, the Loans shall bear interest on the unpaid
         principal amount thereof from the date made until paid in full (whether
         by acceleration or otherwise) at a rate determined by reference to the
         Base Rate or the Adjusted LIBOR Rate. The applicable basis for
         determining the rate of interest with respect to the initial Revolving
         Advance on the New Effective Date shall be selected by Borrower at the
         time of delivery of a Notice of Borrowing pursuant to subsection
         2.1(d). The rate of interest on the Term Loan on the New Effective Date
         is 11.12% (that is, the LIBOR Rate of 6.12% plus 5.0%) and the Interest
         Period with respect to such LIBOR Rate Loan expires on June 5, 2000.

                  Subject to the provisions of subsections 2.2(e) and 2.8, the
Loans shall bear interest until paid in full as follows:

                                    (i)      if a Base Rate Loan, then at the
                                             sum of the Base Rate plus the
                                             Applicable Margin per annum; or

                                    (ii)     if a LIBOR Rate Loan, then at the
                                             sum of the Adjusted LIBOR Rate plus
                                             the Applicable Margin per annum.

                  The "APPLICABLE MARGIN" for Term Loans that are Base Rate
Loans and LIBOR Rate Loans shall be determined quarterly, based upon the
calculation of the Total Leverage Ratio for the prior fiscal quarter, as
follows:

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------
                                             APPLICABLE MARGIN FOR                APPLICABLE MARGIN
        TOTAL LEVERAGE RATIO                    LIBOR RATE LOANS                 FOR BASE RATE LOANS
----------------------------------------------------------------------------------------------------
<S>                                          <C>                                 <C>
less than or equal to 1.0x                            4.0%                              2.75%
----------------------------------------------------------------------------------------------------
greater than 1.0x                                     5.0%                              3.75%
----------------------------------------------------------------------------------------------------
</TABLE>

                                       26
<PAGE>   33

                  The "APPLICABLE MARGIN" for Revolving Loans that are Base Rate
Loans and LIBOR Rate Loans shall be as follows:

<TABLE>
<CAPTION>
-------------------------------------------------------------------
        APPLICABLE MARGIN FOR                 APPLICABLE MARGIN FOR
          LIBOR RATE LOANS                       BASE RATE LOANS
-------------------------------------------------------------------
        <S>                                   <C>
                2.75%                                 1.50%
-------------------------------------------------------------------
</TABLE>

                           (b) INTEREST PERIODS. In connection with a LIBOR Rate
         Loan, the interest period (each an "INTEREST PERIOD") to be applicable
         to the Loans shall be a 1, 2, 3 or 6 month period, as selected by
         Borrower; provided, that:

                                    (i)     in the case of immediately
                                            successive Interest Periods
                                            applicable to a LIBOR Rate Loan
                                            continued as such pursuant to a
                                            Notice of Conversion/Continuation,
                                            each successive Interest Period
                                            shall commence on the day on which
                                            the next preceding Interest Period
                                            expires;

                                    (ii)    if an Interest Period would
                                            otherwise expire on a day that is
                                            not a Business Day, such Interest
                                            Period shall expire on the next
                                            succeeding Business Day; provided,
                                            that, if any Interest Period would
                                            otherwise expire on a day that is
                                            not a Business Day but is a day of
                                            the month after which no further
                                            Business Day occurs in such month,
                                            such Interest Period shall expire on
                                            the next preceding Business Day;

                                    (iii)   any Interest Period that begins on
                                            the last Business Day of a calendar
                                            month (or on a day for which there
                                            is no numerically corresponding day
                                            in the calendar month at the end of
                                            such Interest Period) shall, subject
                                            to clause (v) of this subsection
                                            2.2(b), end on the last Business Day
                                            of a calendar month; and

                                    (iv)    no Interest Period with respect to
                                            any portion of the Loans shall
                                            extend beyond the Termination Date.

                           (c) INTEREST PAYMENTS. Subject to the provisions of
         subsection 2.2(e), interest on the Loans shall be payable on the last
         day of each Interest Period with respect to LIBOR Rate Loans, and the
         last Business Day of each quarter with respect to Base Rate Loans;
         provided, that, interest with respect to a LIBOR Rate Loan with a
         6-month Interest Period shall be payable at the end of the third and
         sixth months of such Interest Period.

                                       27
<PAGE>   34

                           (d) CONVERSION OR CONTINUATION. Subject to the
         provisions of subsection 2.7, Borrower shall have the option (i) to
         convert at any time a Loan bearing interest at a rate determined by
         reference to one basis to the alternative basis or (ii) upon the
         expiration of an Interest Period applicable to a Loan bearing interest
         at the LIBOR Rate, to continue a Loan as a LIBOR Rate Loan; provided,
         however, that a LIBOR Rate Loan may only be converted into a Base Rate
         Loan on the expiration date of an Interest Period applicable thereto;
         and provided, further, that no Loan may be made as or converted into a
         Base Rate Loan during the period from December 24 of any year to and
         including January 7 of the immediately succeeding year for the purpose
         of investing in securities bearing interest at a rate determined by
         reference to any other basis for the purpose of arbitrage or
         speculation.

                           Borrower shall deliver a Notice of
         Conversion/Continuation to Lender no later than 10:00 A.M. (New York
         time) at least one Business Day in advance of the proposed conversion
         date (in the case of a conversion to a Base Rate Loan) and at least
         three Business Days in advance of the proposed conversion/continuation
         date (in the case of a conversion to, or a continuation of, a LIBOR
         Rate Loan). A Notice of Conversion/Continuation shall specify (i) the
         proposed conversion/continuation date (which shall be a Business Day),
         (ii) the amount and type of the Loan to be converted/continued, (iii)
         the nature of the proposed conversion/continuation, (iv) in the case of
         a conversion to, or a continuation of, a LIBOR Rate Loan, that no
         Default or Event of Default has occurred and is continuing, (v) with
         respect to each LIBOR Rate Loan, whether such LIBOR Rate Loan will be
         for 1, 2, 3 or 6 months. In lieu of delivering the above-described
         Notice of Conversion/Continuation, Borrower may give Lender telephonic
         notice by the required time of any proposed conversion/continuation
         under this subsection 2.2(d); provided, that such notice shall be
         promptly confirmed in writing by delivery of a Notice of
         Conversion/Continuation to Lender on or before the proposed
         conversion/continuation date, and provided, further, that no more than
         five LIBOR Rate Loans shall be outstanding at any one time.

                  Lender shall not incur any liability to Borrower in acting
upon any telephonic notice referred to above that Lender believes in good faith
to have been given by a duly authorized officer or other person authorized to
act on behalf of Borrower or for otherwise acting in good faith under this
subsection 2.2(d), and upon conversion or continuation of the applicable basis
for determining the interest rate with respect to a Loan in accordance with this
Agreement pursuant to any such telephonic notice Borrower shall have effected a
conversion or continuation, as the case may be, hereunder.

                  Except as otherwise provided in subsections 2.7(b), 2.7(c) and
2.7(g), a Notice of Conversion/Continuation for conversion to, or continuation
of, a LIBOR Rate Loan (or telephonic notice in lieu thereof) shall be
irrevocable on and after the related Interest Rate Determination Date, and
Borrower shall be bound to effect a conversion or continuation in accordance
therewith.

                                       28
<PAGE>   35

                  (e) DEFAULT RATE. Upon the occurrence and during the
continuation of any Event of Default, the outstanding principal amount of the
Loans and, to the extent permitted by applicable law, any interest payments
thereon not paid when due and any fees and other amounts then due and payable
hereunder, shall thereafter bear interest (including post-petition interest in
any proceeding under the Bankruptcy Code or other applicable bankruptcy laws)
payable upon demand at a rate that is 2% per annum in excess of the interest
rate otherwise payable under this Agreement with respect to the Loans (or, in
the case of any such fees and other amounts, at a rate which is 2% per annum in
excess of the interest rate otherwise payable under this Agreement for a Term
Loan that is a Base Rate Loan); provided, that, in the case of a LIBOR Rate
Loan, upon the expiration of the Interest Period in effect at the time any such
increase in interest rate is effective such LIBOR Rate Loan shall thereupon
become a Base Rate Loan and shall thereafter bear interest payable upon demand
at a rate which is 2% per annum in excess of the interest rate otherwise payable
under this Agreement for a Term Loan that is Base Rate Loan. Payment or
acceptance of the increased rates of interest provided for in this subsection
2.2(e) is not a permitted alternative to timely payment and shall not constitute
a waiver of any Event of Default or otherwise prejudice or limit any rights or
remedies of Lender.

                  (f) COMPUTATION OF INTEREST. Interest on the Loans shall be
computed (i) in the case of a Base Rate Loan, on the basis of a 365-day or
366-day year, as the case may be, and (ii) in the case of a LIBOR Rate Loan, on
the basis of a 360-day year, in each case for the actual number of days elapsed
in the period during which it accrues. In computing interest on the Loans, the
date of the making of such Loan or the first day of an Interest Period
applicable to such Loan or, with respect to a Base Rate Loan being converted
from a LIBOR Rate Loan, the date of conversion of such LIBOR Rate Loan to such
Base Rate Loan, as the case may be, shall be included, and the date of payment
of such Loan or the expiration date of an Interest Period applicable to such
Loan or, with respect to a Base Rate Loan being converted to a LIBOR Rate Loan,
the date of conversion of such Base Rate Loan to such LIBOR Rate Loan, as the
case may be, shall be excluded; provided, that if a Loan is repaid on the same
day on which it is made, one day's interest shall be paid on that Loan.

                  2.3      LETTERS OF CREDIT.

                           (a) ISSUANCE. Subject to the terms and conditions of
this Agreement, Lender agrees to incur, from time to time prior to the
Termination Date, upon the request of Borrower and for the account of Borrower
or a Subsidiary, Letter of Credit Obligations by causing Letters of Credit to be
issued (by a bank or other legally authorized Person selected by or acceptable
to Borrower and acceptable to Lender in its sole discretion (each, an "L/C
ISSUER")) naming as account party Borrower or a Subsidiary, in each case
guaranteed by Lender. The aggregate amount of all such Letter of Credit
Obligations shall not at any time exceed the leasser of (i) $3,000,000 (the "L/C
SUBLIMIT"), and (ii) the Revolving Commitment minus the aggregate outstanding
principal balance of the

                                       29
<PAGE>   36
Revolving Advances. No such Letter of Credit shall have an expiry date which is
more than one year following the date of issuance thereof, and Lender shall not
be under any obligation to incur Letter of Credit Obligations in respect of any
Letter of Credit having an expiry date which is later than the Termination Date.

                           (b) ADVANCES AUTOMATIC. In the event that Lender
shall make any payment on or pursuant to any Letter of Credit Obligation, such
payment shall then be deemed automatically to constitute a Revolving Advance
under Section 2.1(c) hereof regardless of whether a Default or Event of Default
shall have occurred and be continuing and notwithstanding Borrower's failure to
satisfy the conditions precedent set forth herein.

                           (c) CASH COLLATERAL. If Borrower is required to
provide cash collateral for any Letter of Credit Obligations pursuant to the
Agreement prior to the Termination Date, Borrower will pay to Lender cash or
Cash Equivalents in an amount equal to 105% of the maximum amount then available
to be drawn under each applicable Letter of Credit outstanding. Such funds or
Cash Equivalents shall be held by Lender in a cash collateral account (the "CASH
COLLATERAL ACCOUNT") maintained at a bank or financial institution acceptable to
Lender. The Cash Collateral Account shall be in the name of Borrower and shall
be pledged to, and subject to the control of and in a manner satisfactory to
Lender. Borrower hereby pledges and grants to Lender a security interest in all
such funds and Cash Equivalents held in the Cash Collateral Account from time to
time, and all proceeds thereof, as security for the payment of all amounts due
in respect of the Letter of Credit Obligations and other Obligations, whether or
not then due.

                           If any Letter of Credit Obligations, whether or not
then due and payable, shall for any reason be outstanding on the Termination
Date, Borrower shall either (i) provide cash collateral therefor in the manner
described above, (ii) cause all such Letters of Credit and guaranties thereof to
be canceled and returned, or (iii) deliver a stand-by letter (or letters) of
credit in guarantee of such Letter of Credit Obligations, which stand-by letter
(or letters) of credit shall be of like tenor and duration as, and in an amount
equal to 105% of the aggregate maximum amount then available to be drawn under,
the Letters of Credit to which such outstanding Letter of Credit Obligations
relate and shall be issued by a bank or financial institution, and shall be
subject to such terms and conditions, in each case, as satisfactory to Lender in
its sole discretion.

                           From time to time after funds are deposited in the
Cash Collateral Account by Borrower, whether before or after the Termination
Date, Lender may apply such funds or Cash Equivalents then held in the Cash
Collateral Account to the payment of any Obligations, in such order as Lender
may elect, as shall be or shall become due and payable by Borrower to Lenders
with respect to such Letter of Credit Obligations and, upon the satisfaction in
full of all Letter of Credit Obligations, to any other Obligations then due and
payable.

                                       30
<PAGE>   37

                           Neither Borrower nor any Person claiming on behalf of
or through Borrower shall have any right to withdraw any of the funds or Cash
Equivalents held in the Cash Collateral Account, except that upon the
termination of all Letter of Credit Obligations and the payment of all amounts
payable by Borrower to Lender in respect thereof, any funds remaining in the
Cash Collateral Account shall be applied to other Obligations when due and owing
and upon payment in full of such Obligations, any remaining amount shall be paid
to Borrower or as otherwise required by law.

                           (d) FEES AND EXPENSES. Borrower agrees to pay to
Lender for Letter of Credit Obligations incurred hereunder, (i) all costs and
expenses incurred by Lender on account of such Letter of Credit Obligations, and
(ii) for each month during which any Letter of Credit Obligation shall remain
outstanding, a fee (the "LETTER OF CREDIT FEE") in an amount equal to the per
annum rate of the Applicable Margin for Revolving Loans that are LIBOR Rate
Loans multiplied by the maximum amount available from time to time to be drawn
under the applicable Letter of Credit. Such fee shall be paid to Lender in
arrears, on the first day of each month. In addition, Borrower shall pay to any
L/C Issuer, on demand, such fees (including all per annum fees), charges and
expenses of such L/C Issuer in respect of the issuance, negotiation, acceptance,
amendment, transfer and payment of such Letter of Credit or otherwise payable
pursuant to the application and related documentation under which such Letter of
Credit is issued.

                           (e) REQUEST FOR INCURRENCE OF LETTER OF CREDIT
OBLIGATIONS. Borrower shall give Lender at least two Business Days prior written
notice requesting the incurrence of any Letter of Credit Obligation, specifying
the date such Letter of Credit Obligation is to be incurred, identifying the
beneficiary to which such Letter of Credit Obligation relates and describing the
nature of the transactions proposed to be supported thereby. The notice shall be
accompanied by the form of the Letter of Credit (which shall be acceptable to
the L/C Issuer) to be guarantied. Notwithstanding anything contained herein to
the contrary, Letter of Credit applications by Borrower and approvals by Lender
may be made and transmitted pursuant to electronic codes and security measures
mutually agreed upon and established by and among Borrower, Lender and the L/C
Issuer.

                           (f) OBLIGATIONS ABSOLUTE. The obligation of Borrower
to reimburse Lender for payments made with respect to any Letter of Credit
Obligation shall be absolute, unconditional and irrevocable, without necessity
of presentment, demand, protest or other formalities. Such obligations of
Borrower shall be paid strictly in accordance with the terms hereof under all
circumstances including the following circumstances:

                               (i) any lack of validity or enforceability of any
         Letter of Credit, the Agreement or the other Loan Documents or any
         other agreement;

                                       31
<PAGE>   38

                           (ii) the existence of any claim, set-off, defense or
         other right which Borrower or any of its Affiliates or Lender may at
         any time have against a beneficiary or any transferee of any Letter of
         Credit (or any Persons or entities for whom any such transferee may be
         acting), Lender, or any other Person, whether in connection with the
         Agreement, the Letter of Credit, the transactions contemplated herein
         or therein or any unrelated transaction (including any underlying
         transaction between Borrower or any of its Affiliates and the
         beneficiary for which the Letter of Credit was procured);

                           (iii) any draft, demand, certificate or any other
         document presented under any Letter of Credit proving to be forged,
         fraudulent, invalid or insufficient in any respect or any statement
         therein being untrue or inaccurate in any respect;

                           (iv) payment by Lender (except as otherwise expressly
         provided in paragraph (g)(ii)(C) below) or any L/C Issuer under any
         Letter of Credit or guaranty thereof against presentation of a demand,
         draft or certificate or other document which does not comply with the
         terms of such Letter of Credit or such guaranty;

                           (v) any other circumstance or happening whatsoever,
         which is similar to any of the foregoing; or

                           (vi) the fact that a Default or an Event of Default
         shall have occurred and be continuing.

                  (g) INDEMNIFICATION; NATURE OF LENDER'S DUTIES.

                           (i) In addition to amounts payable as elsewhere
         provided in the Agreement, Borrower hereby agrees to pay and to
         protect, indemnify, and save harmless Lender from and against any and
         all claims, demands, liabilities, damages, losses, costs, charges and
         expenses (including attorneys' fees) which Lender may incur or be
         subject to as a consequence, direct or indirect, of (A) the issuance of
         any Letter of Credit or guaranty thereof, or (B) the failure of Lender
         seeking indemnification or of any L/C Issuer to honor a demand for
         payment under any Letter of Credit or guaranty thereof as a result of
         any act or omission, whether rightful or wrongful, of any present or
         future de jure or de facto government or governmental authority, in
         each case other than to the extent solely as a result of the gross
         negligence or willful misconduct of Lender (as finally determined by a
         court of competent jurisdiction).

                           (ii) As between Lender and Borrower, Borrower assumes
         all risks of the acts and omissions of, or misuse of any Letter of
         Credit by beneficiaries of any Letter of Credit. In furtherance and not
         in limitation of the foregoing, to the fullest extent permitted by law
         Lender

                                       32
<PAGE>   39

         shall not be responsible: (A) for the form, validity, sufficiency,
         accuracy, genuineness or legal effect of any document issued by any
         party in connection with the application for and issuance of any Letter
         of Credit, even if it should in fact prove to be in any or all respects
         invalid, insufficient, inaccurate, fraudulent or forged; (B) for the
         validity or sufficiency of any instrument transferring or assigning or
         purporting to transfer or assign any Letter of Credit or the rights or
         benefits thereunder or proceeds thereof, in whole or in part, which may
         prove to be invalid or ineffective for any reason; (C) for failure of
         the beneficiary of any Letter of Credit to comply fully with conditions
         required in order to demand payment under such Letter of Credit;
         provided, that, in the case of any payment by Lender under any Letter
         of Credit or guaranty thereof, Lender shall be liable to the extent
         such payment was made solely as a result of its gross negligence or
         willful misconduct (as finally determined by a court of competent
         jurisdiction) in determining that the demand for payment under such
         Letter of Credit or guaranty thereof complies on its face with any
         applicable requirements for a demand for payment under such Letter of
         Credit or guaranty thereof; (D) for errors, omissions, interruptions or
         delays in transmission or delivery of any messages, by mail, cable,
         telegraph, telex or otherwise, whether or not they be in cipher; (E)
         for errors in interpretation of technical terms; (F) for any loss or
         delay in the transmission or otherwise of any document required in
         order to make a payment under any Letter of Credit or guaranty thereof
         or of the proceeds thereof; (G) for the credit of the proceeds of any
         drawing under any Letter of Credit or guaranty thereof; and (H) for any
         consequences arising from causes beyond the control of Lender. None of
         the above shall affect, impair, or prevent the vesting of any of
         Lender's rights or powers hereunder or under the Agreement.

                           (iii) Nothing contained herein shall be deemed to
         limit or to expand any waivers, covenants or indemnities contained in
         any letter of credit application, reimbursement agreement or similar
         document, instrument or agreement between Borrower and such L/C Issuer.

         2.4 REPAYMENTS, PREPAYMENTS AND REDEMPTION OF LOAN; GENERAL PROVISIONS
REGARDING PAYMENTS.

                           (a) REPAYMENT OF LOAN. The aggregate principal amount
         of, and interest on, the Loans shall be due and payable in full on the
         Termination Date.

                           (b) VOLUNTARY PREPAYMENTS. Borrower may, upon not
         less than ten days' prior written or telephonic notice given to Lender
         by Noon (New York time) on the date required and, if given by
         telephone, promptly confirmed in writing to Lender, at any time and
         from time to time (i) voluntarily prepay all or part of the Term Loan,
         or (ii) voluntarily prepay all or part of the Revolving Loan on any
         Business Day in whole or in part in an aggregate minimum amount of

                                       33
<PAGE>   40

         $100,000 and integral multiples of $100,000 in excess of that amount;
         provided, that if such prepayment does not occur on the expiration of
         the Interest Period applicable thereto, Lender shall be entitled to
         receive Breakage Costs from Borrower. Notice of prepayment having been
         given as aforesaid, the principal amount of such Loan specified in such
         notice shall become due and payable on the prepayment date specified
         therein. Each notice of partial prepayment shall designate the Loan or
         other Obligations to which such prepayment is to be applied, provided,
         that amounts repaid on the Term Loan pursuant to this subsection shall
         be applied to the Term Loan in inverse order of scheduled maturities.
         Amounts prepaid on the Term Loan may not be reborrowed.

                           (c) TERMINATION OR REDUCTION OF REVOLVING COMMITMENT.
         Borrower may at any time on at least ten days' prior written notice to
         Lender terminate or reduce the Revolving Commitment or the L/C Sublimit
         in whole or in part in an aggregate minimum amount of $100,000 and
         integral multiples of $100,000 in excess of that amount; provided, that
         the Revolving Commitment shall not be reduced to an amount less than
         the L/C Sublimit, and provided, further, in no event shall the L/C
         Sublimit be reduced or terminated below the amount of Letter of Credit
         Obligations outstanding as of such date. Simultaneously (and as a
         condition to) such termination or reduction of the Revolving Commitment
         or the L/C Sublimit, all Revolving Loans and other Obligations in
         excess of the Revolving Commitment (as so reduced) shall be immediately
         due and payable in full. If such payment does not occur on the
         expiration of the Interest Period applicable thereto, Lender shall be
         entitled to receive Breakage Costs from Borrower. Upon any such
         prepayment and reduction or termination of the Revolving Commitment or
         the L/C Sublimit, Borrower's right to request Revolving Advances, or
         request that Letter of Credit Obligations (and the related L/C
         Sublimit) be incurred on its behalf shall simultaneously be permanently
         reduced or terminated, as the case may be.

                           (d) PREPAYMENT PREMIUM. Borrower shall pay a
         prepayment premium with respect to the Term Loan equal to 1% of the
         amount of such prepayment with respect to any voluntary prepayment made
         prior to September 7, 2000.

                           (e) SCHEDULED MANDATORY PREPAYMENTS. Borrower shall,
         until payment in full of the Term Loan and subject to earlier
         prepayment and payment as hereinafter provided, make installment
         payments in respect of the principal of the Term Loan to Lender on the
         dates (unless such date is not a Business Day, in which case, such
         payment shall be made on the next succeeding Business Day) and in the
         amounts set forth below.

<TABLE>
<CAPTION>
                  Payment Date                                                  Installment Amount
                  ------------                                                  ------------------

         <S>                                                                    <C>
         December 31, 2000, March 31, 2001                                           $468,750.00
         June 30, 2001 and September 30, 2001
</TABLE>

                                       34
<PAGE>   41

<TABLE>
         <S>                                                                       <C>
         December 31, 2001, March 31, 2002                                           $937,500.00
         June 30, 2002, September 30, 2002
         December 31, 2002, March 31, 2003
         June 30, 2003 and September 30, 2003

         December 31, 1 2003, March 31, 2004                                       $1,406,250.00
         June 30, 2004 and September 7, 2004
</TABLE>

         provided, however, that the last such installment shall be in the
         amount necessary to repay in full the unpaid principal amount of the
         Term Loan.

                           (f) MANDATORY PREPAYMENTS -- ASSET SALES. Borrower
         shall, until payment in full of the Term Loan and subject to earlier
         prepayment and payment as hereinafter provided, make prepayments in
         respect of the principal of the Term Loan to Lender concurrently with
         any Asset Sale, in an amount equal to the Net Cash Proceeds of such
         Asset Sale, as follows: first, to the Term Loan, until the Term Loan is
         paid in full, and second, to the Revolving Loan (and in permanent
         reduction of the Revolving Commitment), until the Revolving Loan is
         paid in full (and the Revolving Commitment is reduced to zero). Amounts
         repaid pursuant to this subsection shall be applied on the Term Loan in
         inverse order of scheduled maturities.

                           (g) MANDATORY PREPAYMENTS -- ISSUANCES. Borrower
         shall, until payment in full of the Term Loan and subject to earlier
         prepayment and payment as hereinafter provided, make a prepayment in
         respect of the principal of the Term Loan to Lender concurrently with
         any Issuance (other than an Issuance with respect to a Permitted
         Subordinated Debt Financing), of a percentage of the Net Cash Proceeds
         of such Issuance, as follows:

<TABLE>
<CAPTION>
                  Aggregate Amount of Proceeds from                   Percentage of Net Cash Proceeds
                  Such Issuance Plus all Prior and                    From Such Issuance To Be Applied
                  Simultaneous Issuances                              As Term Loan Prepayment
                  ----------------------                              -----------------------
                  <S>                                                 <C>
                  $0 to $5,000,000                                                  0%

                  $5,000,001 to $10,000,000                                        50%

                  Over $10,000,000                                                100%

</TABLE>

         Amounts repaid pursuant to this subsection shall be applied on the Term
         Loan in inverse order of scheduled maturities.

                           (h) MANDATORY PREPAYMENTS -- CONSOLIDATED EXCESS CASH
         FLOW. Borrower shall, until payment in full of the Term Loan and
         subject to earlier prepayment and payment as hereinafter provided, make
         prepayments in respect of the principal of the Term Loan to Lender not
         later than 90 days following the end of each Fiscal Year, a prepayment
         equal to (x) 25% of Consolidated Excess Cash Flow with respect to the
         Fiscal Year ending on or

                                       35
<PAGE>   42

         about December 31, 2000, and (y) 50% of Consolidated Excess Cash Flow
         with respect to each subsequent Fiscal Year. Amounts repaid pursuant to
         this subsection shall be applied on the Term Loan in inverse order of
         scheduled maturities

                           (i)      GENERAL PROVISIONS REGARDING PAYMENTS.

                                    (i)      Manner and Time of Payment. All
                                             payments by Borrower of principal,
                                             interest, fees and other
                                             Obligations hereunder and under the
                                             Notes shall be made in Dollars in
                                             same day funds, without defense,
                                             setoff or counterclaim, free of any
                                             restriction or condition, and
                                             delivered to Lender not later than
                                             12:00 Noon (New York time) on the
                                             date due at the Funding and Payment
                                             Office; funds received by Lender
                                             after that time on such due date
                                             shall be deemed to have been paid
                                             by Borrower on the next succeeding
                                             Business Day.

                                    (ii)     Payments on Business Days. Whenever
                                             any payment to be made hereunder
                                             shall be stated to be due on a day
                                             that is not a Business Day, such
                                             payment shall be made on the next
                                             succeeding Business Day and such
                                             extension of time shall be included
                                             in the computation of the payment
                                             of interest hereunder or of fees
                                             hereunder, as the case may be.

                                    (iii)    Notation of Payment. Lender agrees
                                             that before disposing of the Notes
                                             held by it, or any part thereof
                                             (other than by granting
                                             participations therein), that
                                             Lender will make a notation thereon
                                             of all principal payments
                                             previously made thereon and of the
                                             date to which interest thereon has
                                             been paid; provided, that the
                                             failure to make (or any error in
                                             the making of) any notation under
                                             any Note shall not limit or
                                             otherwise affect the obligations of
                                             Borrower hereunder or under such
                                             Note with respect to the unpaid
                                             portion of the Obligations.

                  (j) APPLICATION OF NET CASH PROCEEDS OF COLLATERAL AND
PAYMENTS UNDER SUBSIDIARY GUARANTY.

                                    (i)      Application of Net Cash Proceeds of
                                             Collateral. All Net Cash Proceeds
                                             received by Lender in respect of
                                             any sale of, collection from, or
                                             other realization upon all or any
                                             part of the Collateral under any

                                       36
<PAGE>   43

                                             Security Document may, in the
                                             discretion of Lender, be held by
                                             Lender as Collateral for, and/or
                                             (then or at any time thereafter)
                                             applied in full or in part by
                                             Lender against, the applicable
                                             Secured Obligations (as defined in
                                             such Security Document) in the
                                             following order of priority:

                                              1)     To the payment of all costs
                                                     and expenses of such sale,
                                                     collection or other
                                                     realization, including
                                                     reasonable compensation to
                                                     Lender and its counsel, and
                                                     all other expenses,
                                                     liabilities and advances
                                                     made or incurred by Lender
                                                     in connection therewith,
                                                     and all amounts for which
                                                     Lender is entitled to
                                                     indemnification under such
                                                     Security Document and all
                                                     advances made by Lender
                                                     thereunder for the account
                                                     of the applicable Loan
                                                     Party, and to the payment
                                                     of all costs and expenses
                                                     paid or incurred by Lender
                                                     in connection with the
                                                     exercise of any right or
                                                     remedy under such Security
                                                     Document, all in accordance
                                                     with the terms of this
                                                     Agreement and such Security
                                                     Document;

                                             2)      thereafter, to the extent
                                                     of any excess such Net Cash
                                                     Proceeds, to the payment of
                                                     all other such Secured
                                                     Obligations for the ratable
                                                     benefit of the holders
                                                     thereof, and

                                             3)      thereafter, to the extent
                                                     of any excess such Net Cash
                                                     Proceeds, to the payment to
                                                     or upon the order of such
                                                     Loan Party or to whosoever
                                                     may be lawfully entitled to
                                                     receive the same or as a
                                                     court of competent
                                                     jurisdiction may direct.

                                    (ii)     Application of Payments Under
                                             Subsidiary Guaranty. All payments
                                             received by Lender under the
                                             Subsidiary Guaranty shall be
                                             applied promptly from time to time
                                             by Lender in the following order of
                                             priority:

                                             1)      To the payment of the costs
                                                     and expenses of any
                                                     collection or other
                                                     realization under the
                                                     Subsidiary Guaranty,
                                                     including reasonable
                                                     compensation to Lender and
                                                     its counsel, and all
                                                     expenses, liabilities and
                                                     advances made

                                       37
<PAGE>   44

                                                     or incurred by Lender in
                                                     connection therewith, all
                                                     in accordance with the
                                                     terms of this Agreement
                                                     and the Subsidiary
                                                     Guaranty;

                                             2)      thereafter, to the extent
                                                     of any excess such
                                                     payments, to the payment of
                                                     all other Guarantied
                                                     Obligations (as defined in
                                                     the Subsidiary Guaranty)
                                                     for the ratable benefit of
                                                     the holders thereof, and

                                             3)      thereafter, to the extent
                                                     of any excess such
                                                     payments, to the payment to
                                                     the applicable Subsidiary
                                                     Guarantor or to whosoever
                                                     may be lawfully entitled to
                                                     receive the same or as a
                                                     court of competent
                                                     jurisdiction may direct.

                  2.5 UNUSED FACILITY FEE. Borrower agrees to pay to Lender, in
arrears, on the first Business Day of each month prior to the Termination Date
and on the Termination Date, a fee for Borrower's non-use of available funds
under the Revolving Loan facility in an amount equal to 0.50% per annum
(calculated on the basis of a 360-day year for actual days elapsed) of the
difference between (x) the Revolving Commitment (as it may be reduced from time
to time) and (y) the average for the period of the daily closing balances of the
Revolving Loan outstanding during the period for which such fee is due.

                  2.6      USE OF PROCEEDS.

                           (a) REVOLVING LOAN. The proceeds of the initial
         Revolving Advance on the New Effective Date shall be contributed by
         Borrower to certain of its Domestic Subsidiaries to make payment in
         full of all Indebtedness outstanding under the Senior Credit
         Agreements. The ongoing proceeds of Revolving Advances shall be applied
         by Borrower for working capital needs, capital expenditures,
         acquisitions (each, to the extent permitted hereunder) and other
         general corporate purposes of Borrower and its Subsidiaries.

                           (b) MARGIN REGULATIONS. No portion of the proceeds of
         any borrowing under this Agreement shall be used by Borrower or any of
         its Subsidiaries in any manner that might cause the borrowing or the
         application of such proceeds to violate Regulation U, Regulation T or
         Regulation X of the Board of Governors of the Federal Reserve System or
         any other regulation of such Board or to violate the Exchange Act, in
         each case as in effect on the date or dates of such borrowing and such
         use of proceeds.

                                       38
<PAGE>   45

                  2.7      SPECIAL PROVISIONS GOVERNING LIBOR RATE LOAN.

                  Notwithstanding any other provision of this Agreement to the
contrary, the following provisions shall govern with respect to a LIBOR Rate
Loan as to the matters covered:

                           (a) DETERMINATION OF APPLICABLE INTEREST RATE. As
         soon as practicable after 10:00 A.M. (New York time) on each Interest
         Rate Determination Date, Lender shall determine (which determination
         shall, absent manifest error, be final, conclusive and binding upon all
         parties) the interest rate that shall apply to the LIBOR Rate Loan for
         which an interest rate is then being determined for the applicable (as
         designated by Borrower) 1, 2, 3 or 6-month Interest Period and shall
         promptly give notice thereof (in writing or by telephone confirmed in
         writing) to Borrower.

                           (b) INABILITY TO DETERMINE APPLICABLE INTEREST RATE.
         In the event that Lender shall have determined (which determination
         shall be final and conclusive and binding upon all parties hereto), on
         any Interest Rate Determination Date with respect to a LIBOR Rate Loan,
         that by reason of circumstances affecting the London interbank market
         adequate and fair means do not exist for ascertaining the interest rate
         applicable to the Loans on the basis provided for in the definition of
         Adjusted LIBOR Rate, Lender shall on such date give notice (by
         telefacsimile or by telephone confirmed in writing) to Borrower of such
         determination, whereupon (i) such Loan may not be made as, or converted
         to, a LIBOR Rate Loan until such time as Lender notifies Borrower that
         the circumstances giving rise to such notice no longer exist and (ii)
         any Notice of Borrowing or Notice of Conversion/Continuation given by
         Borrower with respect to a Loan in respect of which such determination
         was made shall be deemed to be rescinded by Borrower.

                           (c) ILLEGALITY OR IMPRACTICABILITY OF LIBOR RATE
         LOAN. In the event that on any date Lender shall have determined (which
         determination shall be final and conclusive and binding upon all
         parties hereto) that the making, maintaining or continuation of its
         LIBOR Rate Loan (i) has become unlawful as a result of compliance by
         Lender in good faith with any law, treaty, governmental rule,
         regulation, guideline or order (or would conflict with any such treaty,
         governmental rule, regulation, guideline or order not having the force
         of law even though the failure to comply therewith would not be
         unlawful) or (ii) has become impracticable, or would cause Lender
         material hardship, as a result of contingencies occurring after the
         date of this Agreement which materially and adversely affect the London
         interbank market or the position of Lender in that market, then, and in
         any such event, Lender shall on that day give notice (by telefacsimile
         or by telephone confirmed in writing) to Borrower of such
         determination. Thereafter (a) the obligation of Lender to make Loans
         as, or to convert the Loan to, a LIBOR Rate Loan shall be suspended
         until such notice shall be withdrawn by Lender, (b) to the extent such
         determination by Lender relates to a LIBOR Rate Loan then being
         requested by Borrower pursuant to a

                                       39
<PAGE>   46

         Notice of Borrowing or a Notice of Conversion/Continuation, Lender
         shall make a Loan as (or convert a Loan to, as the case may be) a Base
         Rate Loan, (c) Lender's obligation to maintain its outstanding LIBOR
         Rate Loan (the "AFFECTED LOAN") shall be terminated at the earlier to
         occur of the expiration of the Interest Period then in effect with
         respect to the Affected Loan or when required by law, and (d) the
         Affected Loan shall automatically convert into a Base Rate Loan on the
         date of such termination. Notwithstanding the foregoing, to the extent
         a determination by Lender as described above relates to a LIBOR Rate
         Loan then being requested by Borrower pursuant to a Notice of Borrowing
         or a Notice of Conversion/Continuation, Borrower shall have the option,
         subject to the provisions of subsection 2.7(d), to rescind such Notice
         of Borrowing or Notice of Conversion/Continuation by giving notice (by
         telefacsimile or by telephone confirmed in writing) to Lender of such
         rescission on the date on which Lender gives notice of its
         determination as described above (which notice of rescission Lender
         shall promptly transmit to each other Lender).

                           (d) COMPENSATION FOR BREAKAGE OR NON-COMMENCEMENT OF
         INTEREST PERIODS. Borrower shall compensate Lender, upon written
         request by Lender (which request shall set forth the basis for
         requesting such amounts), for all reasonable losses, expenses and
         liabilities (including any interest paid by Lender to lenders of funds
         borrowed by it to make or carry its LIBOR Rate Loan and any loss,
         expense or liability sustained by Lender in connection with the
         liquidation or re-employment of such funds) which Lender may sustain:
         (i) if for any reason (other than a default by Lender) a borrowing of a
         LIBOR Rate Loan does not occur on a date specified therefor in a Notice
         of Borrowing or a telephonic request for borrowing, or a conversion to
         or continuation of a LIBOR Rate Loan does not occur on a date specified
         therefor in a Notice of Conversion/Continuation or a telephonic request
         for conversion or continuation, (ii) if any prepayment or other
         principal payment or any conversion of a LIBOR Rate Loan occurs on a
         date prior to the last day of an Interest Period applicable to that
         Loan, (iii) if any prepayment of its LIBOR Rate Loan is not made on any
         date specified in a notice of prepayment given by Borrower, or (iv) as
         a consequence of any other default by Borrower in the repayment of
         their LIBOR Rate Loan when required by the terms of this Agreement.

                           (e) BOOKING OF LIBOR RATE LOAN. Lender may make,
         carry or transfer the LIBOR Rate Loan at, to, or for the account of any
         of its branch offices or the office of an Affiliate of Lender, but in
         any such event without discharging Lender from its obligations to make
         Loans subject to and in accordance with the provisions this Agreement.

                           (f) ASSUMPTIONS CONCERNING FUNDING OF LIBOR RATE
         LOAN. Calculation of all amounts payable to Lender under this
         subsection 2.7 and under subsection 2.8(a) shall be made as though
         Lender had actually funded its LIBOR Rate Loan through the purchase of
         a LIBOR deposit bearing interest at the rate obtained pursuant to
         clause (i) of the definition of Adjusted LIBOR Rate in an amount equal
         to the amount of the LIBOR Rate Loan and having a maturity

                                       40
<PAGE>   47

         comparable to the relevant Interest Period and through the transfer of
         such LIBOR deposit from an offshore office of Lender to a domestic
         office of Lender in the United States of America; provided, however,
         that Lender may fund its LIBOR Rate Loan in any manner it sees fit and
         the foregoing assumptions shall be utilized only for the purposes of
         calculating amounts payable under this subsection 2.7 and under
         subsection 2.8(a).

                           (g) LIBOR RATE LOAN AFTER DEFAULT. After the
         occurrence of and during the continuation of a Default or an Event of
         Default, (i) Borrower may not elect to have a Loan be made or
         maintained as, or converted to, a LIBOR Rate Loan after the expiration
         of any Interest Period then in effect for the Loans and (ii) subject to
         the provisions of subsection 2.7(d), any Notice of Borrowing or Notice
         of Conversion/Continuation given by Borrower with respect to a
         requested borrowing or conversion/continuation that has not yet
         occurred shall be deemed to be rescinded by Borrower.

                  2.8      INCREASED COSTS, TAXES; CAPITAL ADEQUACY.

                           (a) COMPENSATION FOR INCREASED COSTS AND TAXES.
         Subject to the provisions of subsection 2.8(b) (which shall be
         controlling with respect to the matters covered thereby), in the event
         that Lender shall determine (which determination shall, absent manifest
         error, be final and conclusive and binding upon all parties hereto)
         that any law, treaty or governmental rule, regulation or order, or any
         change therein or in the interpretation, administration or application
         thereof (including the introduction of any new law, treaty or
         governmental rule, regulation or order), or any determination of a
         court or governmental authority, in each case that becomes effective
         after the Initial Effective Date, or compliance by Lender with any
         guideline, request or directive issued or made after the Initial
         Effective Date by any central bank or other governmental or
         quasi-governmental authority (whether or not having the force of law):

                                    (i)     subjects Lender (or its applicable
                                            lending office) to any additional
                                            Tax (other than any Tax on the
                                            overall net income of Lender) with
                                            respect to this Agreement or any of
                                            its obligations hereunder or any
                                            payments to Lender (or its
                                            applicable lending office) of
                                            principal, interest, fees or any
                                            other amount payable hereunder;

                                    (ii)    imposes, modifies or holds
                                            applicable any reserve (including
                                            any marginal, emergency,
                                            supplemental, special or other
                                            reserve), special deposit,
                                            compulsory loan, FDIC insurance or
                                            similar requirement against assets
                                            held by, or deposits or other
                                            liabilities in or for the account
                                            of, or advances or loans by, or
                                            other credit extended by, or any
                                            other acquisition of funds by, any
                                            office of Lender

                                       41
<PAGE>   48

                                             (other than any such reserve or
                                             other requirements with respect to
                                             a LIBOR Rate Loan that are
                                             reflected in the definition of
                                             Adjusted LIBOR Rate); or

                                    (iii)    imposes any other condition (other
                                             than with respect to a Tax matter)
                                             on or affecting Lender (or its
                                             applicable lending office) or its
                                             obligations hereunder or the London
                                             interbank market;

         and the result of any of the foregoing is to increase the cost to
         Lender of agreeing to make, making or maintaining the Loans hereunder
         or to reduce any amount received or receivable by Lender (or its
         applicable lending office) with respect thereto; then, in any such
         case, Borrower shall promptly pay to Lender, upon receipt of the
         statement referred to in the next sentence, such additional amount or
         amounts (in the form of an increased rate of, or a different method of
         calculating, interest or otherwise as Lender in its sole discretion
         shall determine) as may be necessary to compensate Lender for any such
         increased cost or reduction in amounts received or receivable
         hereunder; provided, however, that for purposes of this sentence, the
         final U.S. Treasury regulations that were issued October 6, 1997 and
         subsequently amended with respect to the withholding of United States
         federal income tax (the "NEW WITHHOLDING REGULATIONS") shall not be
         considered to constitute any law, treaty or governmental rule,
         regulation or order, or any change therein or in the interpretation,
         administration or application thereof (including the introduction of
         any new law, treaty or governmental rule, regulation or order), or any
         determination of a court of governmental authority, in each case that
         becomes effective after the Initial Effective Date, notwithstanding
         that the New Withholding Regulations generally are only effective for
         payments made after December 31, 2000. Lender shall deliver to Borrower
         a written statement, setting forth in reasonable detail the basis for
         calculating the additional amounts owed to Lender under this subsection
         2.8(a), which statement shall be conclusive and binding upon all
         parties hereto absent manifest error.

                           (b) WITHHOLDING OF TAXES. All sums payable by
         Borrower under this Agreement and the other Loan Documents shall
         (except to the extent required by law) be paid free and clear of, and
         without any deduction or withholding on account of, any Tax (other than
         a Tax on the overall net income of Lender) imposed, levied, collected,
         withheld or assessed by or within the United States of America or any
         political subdivision in or of the United States of America or any
         other jurisdiction from or to which a payment is made by or on behalf
         of Borrower or by any federation or organization of which the United
         States of America or any such jurisdiction is a member at the time of
         payment. If Borrower pays an additional amount pursuant to subsection
         2.8(a) or (b) with respect to Taxes imposed on any payments made to or
         on behalf of Lender (including any Lender that is an assignee or
         transferee of an interest under this Agreement pursuant to subsection
         8.1) and such Lender determines in its good faith discretion that it
         has actually received or realized in connection therewith

                                       42
<PAGE>   49

         any refund of Tax, or any reduction of, or credit against, its Tax
         liabilities (a "TAX BENEFIT"), such Lender shall pay to Borrower an
         amount that such Lender shall, in its good faith discretion, determine
         is equal to the net benefit, after tax, which was obtained by such
         Lender as a consequence of such refund, reduction or credit; provided,
         however, that (i) such Lender may determine, in its good faith
         discretion consistent with the policies of such Lender, whether to seek
         a Tax Benefit and (ii) nothing in this subsection 2.8(b) shall require
         such Lender to disclose any confidential information to Borrower
         (including its tax returns).

                           (c) TAX FORMS. Lender represents that as of the
         Initial Effective Date all payments to be made to it by Borrower
         pursuant to this Agreement and the other Loan Documents will be totally
         exempt from the withholding of United States federal tax. Lender agrees
         to deliver to Borrower on or prior to the Initial Effective Date, or in
         the case of a Lender that is an assignee or transferee of an interest
         under this Agreement pursuant to subsection 8.1 on the date of such
         assignment or transfer to such Lender, the appropriate Internal Revenue
         Service forms or certificates that establish such Lender's entitlement
         to a complete exemption from the withholding of United States federal
         tax with respect to payments to be made pursuant to this Agreement and
         the other Loan Documents. In addition, Lender (including any Lender
         that is an assignee or transferee of an interest under this Agreement
         pursuant to subsection 8.1) agrees that (i) from time to time after the
         Initial Effective Date, when a lapse in time or change in circumstance
         renders the previous Internal Revenue Service forms or certificates
         obsolete or inaccurate in any material respect, or (ii) upon Borrower's
         reasonable request after the occurrence of any other event requiring
         the delivery of an Internal Revenue Service form or certificate in
         addition to or in replacement of the forms or certificates previously
         delivered, it will deliver to Borrower such Internal Revenue Service
         forms or certificates as may be required in order to confirm or
         establish such Lender's entitlement to a continued exemption from the
         withholding of United States federal tax with respect to payments to be
         made under this Agreement and the other Loan Documents. Notwithstanding
         anything to the contrary contained in subsection 2.8(b), but subject to
         subsection 2.8(a), Borrower shall be entitled, to the extent it is
         required to do so by law, to deduct or withhold income or similar Taxes
         imposed by the United States (or any political subdivision or taxing
         authority thereof or therein) from amounts payable hereunder for the
         account of Lender (including any Lender that is an assignee or
         transferee of any interest under this Agreement pursuant to subsection
         8.1) and Borrower shall not be obligated pursuant to subsection 2.8(b)
         to gross-up payments to be made to such Lender in respect of such Taxes
         to the extent that such Lender has not provided to Borrower the
         appropriate Internal Revenue Service forms or certificates that
         establish a complete exemption from such deduction or withholding.

                           (d) CAPITAL ADEQUACY ADJUSTMENT. If Lender shall have
         determined that the adoption, effectiveness, phase-in or applicability
         after the Initial Effective Date of any law, rule or regulation (or any
         provision thereof) regarding capital adequacy, or any change therein or
         in the interpretation or

                                       43
<PAGE>   50

         administration thereof by any governmental authority, central bank or
         comparable agency charged with the interpretation or administration
         thereof, or compliance by Lender (or its applicable lending office)
         with any guideline, request or directive regarding capital adequacy
         (whether or not having the force of law) of any such governmental
         authority, central bank or comparable agency, has or would have the
         effect of reducing the rate of return on the capital of Lender or any
         corporation controlling Lender as a consequence of, or with reference
         to, Lender's Loan or other obligations hereunder with respect to the
         Loan to a level below that which Lender or such controlling corporation
         could have achieved but for such adoption, effectiveness, phase-in,
         applicability, change or compliance (taking into consideration the
         policies of Lender or such controlling corporation with regard to
         capital adequacy), then from time to time, within five Business Days
         after receipt by Borrower from Lender of the statement referred to in
         the next sentence, Borrower shall pay to Lender such additional amount
         or amounts as will compensate Lender or such controlling corporation on
         an after-tax basis for such reduction. Lender shall deliver to Borrower
         a written statement, setting forth in reasonable detail the basis of
         the calculation of such additional amounts, which statement shall be
         conclusive and binding upon all parties hereto absent manifest error.

                  2.9      GUARANTIES OF AND SECURITY FOR THE OBLIGATIONS.

                           (a) BORROWER AND ITS SUBSIDIARIES. (i) Subsidiary
         Guarantors shall guaranty the Obligations of Borrower pursuant to the
         Subsidiary Guaranties and (ii) to secure the full performance of the
         Obligations (a) Borrower shall grant to Lender a duly perfected first
         priority Lien on all of the issued and outstanding capital stock of
         Holdings, and (b) Borrower and Subsidiary Guarantors shall grant to
         Lender a duly perfected first priority Lien on all real, personal and
         mixed Collateral of Borrower and Subsidiary Guarantors, now owned or
         hereafter acquired, which Lender may request. Borrower and Subsidiary
         Guarantors shall execute and deliver any and all Security Documents
         including, without limitation, the Borrower Pledge Agreement, the
         Borrower Security Agreement, the Holdings Pledge Agreement, financing
         statements, termination statements, collateral search reports, title
         reports, title insurance, landlord waivers and consents, trademark
         documentation, opinions of counsel and such other perfection documents,
         instruments, information and materials with respect to the Collateral
         and Pledged Collateral as Lender may reasonably request. All of the
         foregoing shall be in form and substance reasonably satisfactory to
         Lender.

                           (b) FURTHER ASSURANCES; ADDITIONAL SECURITY. Borrower
         shall, and shall cause each other Loan Party (whether now or hereafter
         acquired or existing) to, from time to time, execute and deliver to
         Lender such additional Security Documents, statements, documents,
         agreements and reports as it may from time to time reasonably request
         to evidence, perfect or otherwise implement or assure the security for
         repayment of the Obligations; provided, that, no Loan Party shall be
         required to provide any different type of Collateral from that
         contemplated for such by the Security Documents to which it is a party
         as of the

                                       44

<PAGE>   51

Initial Effective Date. All reinsurance policies shall include direct access
agreements reasonably acceptable to Lender.

                                   SECTION 3.
                             CONDITIONS TO THE LOANS

                  The obligations of Lender to make the Loan hereunder are
subject to the satisfaction of the following conditions.

                  3.1 CONDITIONS TO EFFECTIVENESS ON INITIAL EFFECTIVE DATE.
[Intentionally Omitted]

                  3.2 CONDITIONS TO EFFECTIVENESS ON NEW EFFECTIVE DATE.

                  The amendment and restatement of the Original Credit Agreement
contemplated hereunder shall become effective only upon, and the obligations of
Lender to make the Loan on the New Effective Date, are subject to, prior or
concurrent satisfaction of the following conditions:

                           (a) BORROWER AND SUBSIDIARY GUARANTORS DOCUMENTS. On
         or before the New Effective Date, Borrower shall, and shall cause each
         Subsidiary Guarantor to, deliver to Lender the following with respect
         to Borrower or such Subsidiary Guarantor, as the case may be, each,
         unless otherwise noted, dated the New Effective Date:

                                    (i)      Resolutions of the Board of
                                             Directors of such Person approving
                                             and authorizing the execution,
                                             delivery and performance of the
                                             Loan Documents to which it is a
                                             party, certified as of the New
                                             Effective Date by the corporate
                                             secretary or an assistant secretary
                                             of such Person as being in full
                                             force and effect without
                                             modification or amendment;

                                    (ii)     Signature and incumbency
                                             certificates of the officers of
                                             such Person executing the Loan
                                             Documents to which it is a party;

                                    (iii)    Executed originals of (A) in the
                                             case of Borrower, this Agreement,
                                             the Revolving Note (duly executed
                                             in accordance with subsection
                                             2.1(e)) and amendments and
                                             confirmations to the other Loan
                                             Documents to which it is a party,
                                             and (B) updates to the Schedules to
                                             those attached to the Original
                                             Credit Agreement such that the
                                             information contained therein is
                                             true, complete and correct as of
                                             the New Effective Date; and

                                       45
<PAGE>   52

                                    (iv)     Such other documents as Lender may
                                             reasonably request.

                           (b) NO MATERIAL ADVERSE EFFECT. Since December 31,
         1998, no Material Adverse Effect (in the reasonable opinion of Lender)
         shall have occurred.

                           (c) NO MATERIAL LITIGATION. Since December 31, 1998,
         no litigation has commenced, which, if successful, would have Material
         Adverse Effect (in the reasonable opinion of Lender).

                           (d) NO MATERIAL MANAGEMENT CHANGES. Since December
         31, 1998, no material changes in management personnel (in the
         reasonable opinion of Lender) shall have occurred.

                           (e) NO MATERIAL INCREASE IN LIABILITIES. Since
         December 31, 1998, no material increase in the liabilities, liquidated
         or contingent, of the Subsidiaries, or a material decrease in the
         assets of the Subsidiaries, has occurred.

                           (f) SECURITY INTERESTS IN PERSONAL PROPERTY. To the
         extent not previously satisfied on the Initial Effective Date, Lender
         shall have received evidence satisfactory to it that Borrower and
         Subsidiary Guarantors shall have taken or caused to be taken all such
         actions, executed and delivered or caused to be executed and delivered
         all such agreements, documents and instruments, and made or caused to
         be made all such filings and recordings (other than the filing or
         recording of items described in clauses (ii) and (iii) below) that may
         be necessary or, in the opinion of Lender, desirable in order to create
         in favor of Lender a valid and (upon such filing and recording)
         perfected security interest in (i) the entire personal property
         Collateral of Borrower and Subsidiary Guarantors and (ii) the Pledged
         Collateral.

                           (g) FINANCIAL STATEMENTS. On or before the New
         Effective Date, Lender shall have received the audited consolidated
         statements of the Borrower and its Subsidiaries as of September 30,
         1999, certified as true and correct pursuant to an Officer's
         Certificate of the Borrower.

                           (h) SENIOR CREDIT AGREEMENTS. On or before the New
         Effective Date, Lender shall have received evidence that Borrower and
         the Domestic Subsidiaries shall have made payment in full of all
         Indebtedness outstanding under the Senior Credit Agreements and the
         Senior Credit Agreements (and all Liens granted thereunder) shall have
         been terminated in full and filings of UCC-3 termination statements
         relating to such Liens have been made or are in the possession of
         Lender for prompt filing immediately following the New Effective Date.

                           (i) INACTIVE SUBSIDIARIES. On or before the New
         Effective Date, Lender shall have received evidence that all documents
         of dissolution with respect to the Inactive Subsidiaries have been duly
         prepared and otherwise are

                                       46
<PAGE>   53

         either have been filed, or are in form ready for filing, with the
         appropriate governmental authority or agency.

                           (j) DELIVERY OF SOURCES, USES AND FUNDING
         CERTIFICATE. Borrower shall have delivered an Officers' Certificate
         detailing the sources and uses of the initial Revolving Advance, with
         proper wire instructions for Lender for the application of the Loan
         proceeds, all in form and substance satisfactory to Lender.

                           (k) DELIVERY OF FINANCIAL CONDITION CERTIFICATE. On
         or before the making of the initial Revolving Advance, Borrower shall
         have delivered a Financial Condition Certificate, substantially in the
         form of Exhibit XIII annexed hereto with appropriate attachments
         demonstrating that, both immediately prior to and immediately after
         giving effect to the consummation of the transactions on the New
         Effective Date and each Loan Party is Solvent.

                           (l) OFFICER'S CERTIFICATE. As of the New Effective
         Date, (i) no event which would constitute an Event of Default or
         Default shall have occurred and be continuing; (ii) the representations
         and warranties in Section 4 hereof shall be true, correct and complete
         in all material respects on and as of the New Effective Date to the
         same extent as though made on and as of that date, except to the extent
         such representations and warranties specifically relate to an earlier
         date, in which case such representations or warranties shall have been
         true, correct and complete in all material respects as of such date;
         (iii) since December 31, 1998, (x) no Material Adverse Effect shall
         have occurred, (y) no litigation, inquiry or other action and no
         injunction or restraining order shall be pending or threatened with
         respect to the Loans or the transactions contemplated by the Loan
         Documents, and (z) no material changes in management personnel has
         occurred, and (iv) each Loan Party shall have delivered to Lender an
         Officer's Certificate to such effect, in form and substance
         satisfactory to Lender.

                           (m) OPINIONS OF LOAN PARTIES' COUNSEL. Lender and its
         counsel shall have received originally executed copies of one or more
         favorable written opinions, dated as of the New Effective Date, of (i)
         Pitney, Hardin, Kipp & Szuch LLP, local counsel for the Loan Parties,
         in form and substance reasonably satisfactory to Lender and its counsel
         and setting forth substantially the matters in the opinions designated
         in Exhibit V-a annexed hereto and, as to such other matters as Lender
         may reasonably request and (ii) Dewey Ballantine LLP, counsel for the
         Loan Parties as to the matters set forth in Exhibit V-b annexed hereto
         and as to such other matters as Lender may reasonably request, all in
         form and substance satisfactory to Lender and its counsel.

                           (n) COMPLETION OF PROCEEDINGS. All corporate and
         other proceedings taken or to be taken in connection with the
         transactions contemplated hereby and all documents incidental thereto
         not previously found acceptable by Lender and its counsel shall be
         satisfactory in form and substance to Lender and

                                       47
<PAGE>   54

         such counsel, and Lender and its counsel shall have received all such
         counterpart originals or certified copies of such documents as Lender
         may reasonably request.

                           (o) PAYMENT OF FEES. On or before the New Effective
         Date, Borrower shall have paid to Lender those fees referred to in the
         proposal letter, dated December 10, 1999 that are payable on the New
         Effective Date.

                                   SECTION 4.
                    BORROWER'S REPRESENTATIONS AND WARRANTIES

         In order to induce Lender to enter into this Agreement and to make the
Loan, Borrower represents and warrants to Lender on the date of this Agreement
that the following statements are true, correct and complete:

                  4.1 ORGANIZATION, POWERS, QUALIFICATION, GOOD STANDING,
BUSINESS AND SUBSIDIARIES.

                           (a) ORGANIZATION AND POWERS. Each Loan Party is a
         corporation, partnership, limited liability company or trust, as the
         case may be, duly organized, validly existing and in good standing
         under the laws of its jurisdiction of organization as specified in
         Schedule 4.1(d) annexed hereto. Each Loan Party has all requisite power
         and authority to own and operate its properties, to carry on its
         business as now conducted and as proposed to be conducted, to enter
         into the Loan Documents to which it is a party and to carry out the
         transactions contemplated thereby.

                           (b) QUALIFICATION AND GOOD STANDING. Each of Borrower
         and each Subsidiary Guarantor is qualified to do business and in good
         standing in every jurisdiction where its assets are located and
         wherever necessary to carry out its business and operations, except in
         jurisdictions where the failure to be so qualified or in good standing
         has not had and will not have a Material Adverse Effect.

                           (c) CONDUCT OF BUSINESS. Borrower and the Subsidiary
         Guarantors are engaged only in the businesses permitted to be engaged
         in pursuant to subsection 6.13 and are conducting their business in
         accordance with the provisions of subsection 6.13. Each of Borrower and
         each Subsidiary Guarantor holds all licenses, permits, franchises,
         certificates of authority, or any waivers of the foregoing that are
         necessary to permit them to conduct their respective businesses as now
         conducted and to hold and operate their respective properties except as
         could not reasonably be expected to have a Material Adverse Effect. All
         such licenses, permits, franchises, certificates of authority, and
         waivers are valid and in full force and effect.

                           (d) SUBSIDIARIES. All of the Subsidiaries of Borrower
         as of the New Effective Date are identified in Schedule 4.1(d) annexed
         hereto. The capital stock of each of the Subsidiaries of Borrower
         identified in Schedule 4.1(d) annexed hereto is duly authorized,
         validly issued, fully paid and nonassessable

                                       48
<PAGE>   55

         and none of such capital stock constitutes Margin Stock. Schedule
         4.1(d) annexed hereto correctly sets forth, as of the New Effective
         Date, the ownership interest of Borrower and each of its Subsidiaries
         in each of the Subsidiaries of Borrower identified therein.

                           (e) REAL PROPERTY. No Loan Party owns any interest in
         real property.

                           (f) COLLATERAL MATTERS. Other than as may be
         supplemented by written notices delivered to Lender pursuant to the
         Pledge Agreements and the Security Agreements:

                                    (i)     the chief executive office and
                                            principal place of business of each
                                            Loan Party is as set forth in Part
                                            One of Schedule 4.1(f) annexed
                                            hereto;

                                    (ii)    the office where each Loan Party
                                            keeps its records concerning
                                            Accounts (as defined in the Security
                                            Agreements) and all originals of all
                                            chattel paper which evidence any
                                            Accounts are located at the
                                            addresses specified for such Loan
                                            Party in Part Two of Schedule 4.1(f)
                                            annexed hereto;

                                    (iii)   the location where each Loan Party
                                            keeps any Inventory (as defined in
                                            the Security Agreements) of at least
                                            $50,000 in the aggregate is at the
                                            address specified for such Loan
                                            Party in Part Three of Schedule
                                            4.1(f) annexed hereto;

                                    (iv)    the location where each Loan Party
                                            keeps any Equipment (as defined in
                                            the Security Agreements) of at least
                                            $50,000 in the aggregate is at the
                                            address specified for such Loan
                                            Party in Part Four of Schedule
                                            4.1(f) annexed hereto;

                                    (v)     other than as set forth in Part Five
                                            of Schedule 4.1(f) annexed hereto,
                                            no Loan Party does any business
                                            under any fictitious business names
                                            or tradenames or has done business
                                            under any fictitious business names
                                            or tradenames during the five years
                                            preceding the Initial Effective
                                            Date.

                  4.2      AUTHORIZATION OF BORROWING, ETC.

                           (a) AUTHORIZATION OF BORROWING. The execution,
         delivery and performance of the Loan Documents and the Related
         Documents have been duly authorized by all necessary action on the part
         of each Loan Party that is a party thereto.

                                       49
<PAGE>   56

                           (b) NO CONFLICT. The execution, delivery and
         performance by Loan Parties of the Loan Documents and the Related
         Documents and the consummation of the transactions contemplated thereby
         do not and will not (i) violate any provision of any law or any
         governmental rule or regulation applicable to any Loan Party, the
         Certificate or Articles of Incorporation or Bylaws or other
         organizational documents of any Loan Party or any order, judgment or
         decree of any court or other agency of government binding on any Loan
         Party, (ii) conflict with, result in a breach of or constitute (with
         due notice or lapse of time or both) a default under any Contractual
         Obligation of any Loan Party, (iii) result in or require the creation
         or imposition of any Lien upon any of the properties or assets of any
         Loan Party (other than any Liens created under any of the Loan
         Documents in favor of Lender), or (iv) require any approval of
         stockholders or any approval or consent of any Person under any
         Contractual Obligation of any Loan Party, except for such approvals or
         consents which have already been obtained that on or before the Initial
         Effective Date, such consents to be obtained shall be disclosed in
         writing to Lender.

                           (c) GOVERNMENTAL CONSENTS. The execution, delivery
         and performance by Loan Parties of the Loan Documents and the Related
         Documents and the consummation of the transactions contemplated thereby
         do not and will not require any registration with, consent or approval
         of, or notice to, or other action to, with or by, any federal, state or
         other governmental authority or regulatory body.

                           (d) BINDING OBLIGATION. Each of the Loan Documents
         and the Related Documents has been duly executed and delivered by each
         Loan Party that is a party thereto and is the legally valid and binding
         obligation of such Loan Party, enforceable against such Loan Party in
         accordance with its respective terms, except as may be limited by
         bankruptcy, insolvency, reorganization, moratorium or similar laws
         relating to or limiting creditors' rights generally or by equitable
         principles relating to enforceability.

                  4.3      FINANCIAL CONDITION.

                  Borrower has heretofore delivered to Lender, at Lender's
request, the financial statements described in subsection 3.2(g). Except as set
forth in Schedule 4.3 annexed hereto, all such statements were prepared in
conformity with GAAP and fairly present, in all material respects, the financial
position (on a consolidated and, where applicable, consolidating basis) of the
entities described in such financial statements as at the respective dates
thereof and the results of operations and cash flows (on a consolidated and,
where applicable, consolidating basis) of the entities described therein for
each of the periods then ended, subject, in the case of any such unaudited
financial statements, to changes resulting from audit and normal year-end
adjustments. Borrower and its Subsidiaries do not (and will not following the
funding of the initial Revolving Advance) have any Contingent Obligation,
contingent liability or liability for Taxes, long-term lease or unusual forward
or long-term commitment that is not reflected in the foregoing financial
statements or the notes thereto and which in any such case is material

                                       50
<PAGE>   57

in relation to the business, operations, properties, assets, condition
(financial or otherwise) or prospects of Borrower or any of its Subsidiaries.

                  4.4      NO MATERIAL ADVERSE CHANGE; NO RESTRICTED
                           JUNIOR PAYMENTS.

                  Except as set forth in Schedule 4.4 annexed hereto, since
December 31, 1998, no event or change has occurred that has caused or evidences,
either in any case or in the aggregate, a Material Adverse Effect. Since
December 31, 1998, neither Borrower nor any of its Subsidiaries has directly or
indirectly declared, ordered, paid or made, or set apart any sum or property
for, any Restricted Junior Payment or agreed to do so except as permitted by
subsection 6.6 or except in connection with the transactions contemplated in the
Recitals to this Agreement.

                  4.5      TITLE TO PROPERTIES; LIENS; REAL PROPERTY.

                           (a) TITLE TO PROPERTIES; LIENS. The Loan Parties have
         (i) good, sufficient and legal title to (in the case of fee interests
         in real property), (ii) valid leasehold interests in (in the case of
         leasehold interests in real or personal property), or (iii) good title
         to (in the case of all other personal property), all of their
         respective properties and assets reflected in the financial statements
         referred to in subsection 4.3 or in the most recent financial
         statements delivered pursuant to subsection 5.1, in each case except
         for assets disposed of since the date of such financial statements in
         the ordinary course of business or as otherwise permitted under
         subsection 6.8 and except as could not reasonably be expected to have a
         Material Adverse Effect. Except as permitted by this Agreement, all
         such properties and assets are free and clear of Liens.

                           (b) REAL PROPERTY. As of the New Effective Date, (i)
         no Loan Party owns any Real Property, and (ii) Schedule 4.5 annexed
         hereto contains a true, accurate and complete list of all Material
         Leasehold Properties of any Loan Party, regardless of whether such Loan
         Party is the landlord or tenant (whether directly or as an assignee or
         successor in interest) under such lease, sublease or assignment. Except
         as specified in Schedule 4.5 annexed hereto, each agreement listed in
         clause (ii) of the immediately preceding sentence is in full force and
         effect and Borrower does not have knowledge of any default that has
         occurred and is continuing thereunder, and each such agreement
         constitutes the legally valid and binding obligation of each applicable
         Loan Party, enforceable against such Loan Party in accordance with its
         terms, except as enforcement may be limited by bankruptcy, insolvency,
         reorganization, moratorium or similar laws relating to or limiting
         creditors' rights generally or by equitable principles.

                  4.6      LITIGATION; ADVERSE FACTS.

                  Except as set forth on Schedule 4.6, there are no actions,
suits, proceedings, arbitrations or governmental investigations (whether or not
purportedly on behalf of any Loan Party) at law or in equity, or before or by
any federal, state, municipal or other governmental department, commission,
board, bureau, agency or instrumentality,

                                       51
<PAGE>   58

domestic or foreign (including any Environmental Claims) that are pending or, to
the knowledge of any Loan Party, threatened against or affecting any Loan Party
or any property of any Loan Party and that, individually or in the aggregate,
could reasonably be expected to result in a Material Adverse Effect. No Loan
Party (i) is in violation of any applicable laws (including any Environmental
Laws) that, individually or in the aggregate, could reasonably be expected to
result in a Material Adverse Effect, or (ii) is subject to or in default with
respect to any final judgments, writs, injunctions, decrees, rules or
regulations of any court or any federal, state, municipal or other governmental
department, commission, board, bureau, agency or instrumentality, domestic or
foreign, that, individually or in the aggregate, could reasonably be expected to
result in a Material Adverse Effect.

                  4.7      PAYMENT OF TAXES.

                  Except to the extent permitted by subsection 5.3, all tax
returns and reports of each Loan Party required to be filed by any of them have
been timely filed, and all Taxes shown on such tax returns to be due and payable
and all assessments, fees and other governmental charges upon each Loan Party
and upon their respective properties, assets, income, businesses and franchises
which are due and payable have been paid when due and payable. No Loan Party
knows of any proposed Tax assessment against any Loan Party which is not being
actively contested by such Loan Party in good faith and by appropriate
proceedings; provided, that such reserves or other appropriate provisions, if
any, as shall be required in conformity with GAAP shall have been made or
provided therefor.

                  4.8 PERFORMANCE OF AGREEMENTS; MATERIALLY ADVERSE AGREEMENTS;
MATERIAL CONTRACTS.

                           (a) No Loan Party is in default in the performance,
         observance or fulfillment of any of the obligations, covenants or
         conditions contained in any of its Contractual Obligations, and no
         condition exists that, with the giving of notice or the lapse of time
         or both, would constitute such a default, except where the
         consequences, direct or indirect, of such default or defaults, if any,
         would not have a Material Adverse Effect.

                           (b) No Loan Party is a party to or is otherwise
         subject to any agreements or instruments or any charter or other
         internal restrictions which, individually or in the aggregate, could
         reasonably be expected to result in a Material Adverse Effect.

                           (c) Schedule 4.8 contains a true, correct and
         complete list of all the Material Contracts in effect on the New
         Effective Date. Except as described on Schedule 4.8, all such Material
         Contracts are in full force and effect and no material defaults
         currently exist thereunder.

                                       52
<PAGE>   59

                  4.9      GOVERNMENTAL REGULATION.

                  No Loan Party is subject to regulation under the Public
Utility Holding Borrower Act of 1935, the Federal Power Act, the Interstate
Commerce Act or the Investment Borrower Act of 1940 or under any other federal
or state statute or regulation which may limit its ability to incur Indebtedness
or which may otherwise render all or any portion of the Obligations
unenforceable.

                  4.10     SECURITIES ACTIVITIES.

                           (a) No Loan Party is engaged principally, or as one
         of its important activities, in the business of extending credit for
         the purpose of purchasing or carrying any Margin Stock.

                           (b) Not more than 25% of the value of the assets
         (either of Borrower only or of Borrower and its Subsidiaries on a
         consolidated basis) subject to the provisions of subsections 6.2 or 6.8
         or subject to any restriction contained in any agreement or instrument,
         between Borrower and Lender or any Affiliate of Lender, relating to
         Indebtedness and within the scope of subsection 7.2, will be Margin
         Stock.

                  4.11     EMPLOYEE BENEFIT PLANS.

                           (a) Each Loan Party is in compliance with all
         applicable provisions and requirements of ERISA and the regulations and
         published interpretations thereunder with respect to each Employee
         Benefit Plan, and have performed all their obligations under each
         Employee Benefit Plan. Each Employee Benefit Plan (other than a
         Multiemployer Plan) which is intended to qualify under Section 401(a)
         of the Internal Revenue Code is so qualified.

                           (b) No ERISA Event has occurred or is reasonably
         expected to occur that could reasonably be expected to have a Material
         Adverse Effect.

                           (c) Except to the extent required under Section 4980B
         of the Internal Revenue Code, no Employee Benefit Plan provides health
         or welfare benefits (through the purchase of insurance or otherwise)
         for any retired or former employee of any Loan Party.

                           (d) As of the most recent valuation date for any
         Pension Plan, the amount of benefit liabilities (as defined in Section
         4001(a)(16) of ERISA and determined using the actuarial assumptions set
         forth in the most recent actuarial report pertaining to such Pension
         Plan), individually or in the aggregate for all Pension Plans
         (excluding for purposes of such computation any Pension Plans with
         respect to which assets exceed benefit liabilities), does not exceed
         the fair market value of the assets of such Pension Plans by more than
         $50,000.

                           (e) To the knowledge of Borrower, after due inquiry,
         the potential liability of Borrower, its Subsidiaries and their
         respective ERISA

                                       53
<PAGE>   60

         Affiliates for a complete withdrawal from each Multiemployer Plan
         (within the meaning of Section 4203 of ERISA), when aggregated with
         such potential liability for a complete withdrawal from all
         Multiemployer Plans, does not exceed $50,000.

                  4.12     CERTAIN FEES.

                  Except as set forth on Schedule 4.12, no broker's or finder's
fee or commission will be payable with respect to this Agreement or any of the
transactions contemplated hereby, and Borrower hereby indemnifies Lender
against, and agrees that it will hold Lender harmless from. any claim, demand or
liability for any such broker's or finder's fees alleged to have been incurred
in connection herewith or therewith and any expenses (including reasonable fees,
expenses and disbursements of counsel) arising in connection with any such
claim, demand or liability.

                  4.13     EMPLOYEE MATTERS.

                  There is no strike or work stoppage in existence or threatened
involving any Loan Party that could reasonably be expected to have a Material
Adverse Effect.

                  4.14     SOLVENCY.

                  Each Loan Party is and, upon the incurrence of any Obligations
by such Loan Party on any date on which this representation is made, will be,
Solvent.

                  4.15     MATTERS RELATING TO COLLATERAL.

                           (a) CREATION, PERFECTION AND PRIORITY OF LIENS. The
         execution and delivery of the Security Documents by Loan Parties,
         together with the amendments and confirmations entered into on the New
         Effective Date, filings of UCC-3 termination statements with respect to
         the Senior Credit Agreements and the filings and recordations
         previously made of the Uniform Commercial Code financing statements
         naming each Loan Party as "debtor", naming Lender as "secured party"
         and describing the Collateral (as defined in the Security Agreements)
         in the filing offices set forth in Part Six of Schedule 4.1(f) annexed,
         constitute, to the extent a security interest in such Collateral may be
         perfected by filing Uniform Commercial Code financing statements, valid
         and perfected security interests therein subject to no Liens (other
         than Permitted Encumbrances) and prior to all other Liens. Upon the
         filing of such Uniform Commercial Code filing statements and the filing
         of the notices of trademarks and copyrights and other similar documents
         provided by Borrower with the United States Patent and Trademark
         Office, United States Copyright Office and the United States Trademark
         Office, as applicable, together with the special powers of attorney
         provided by Borrower, the security interests in such Collateral granted
         to Lender and constituting Intellectual Property will constitute valid
         and perfected security interests therein subject to no Liens (other
         than Permitted Encumbrances) and prior to all other Liens. The Pledge
         Agreements create in favor of Lender a valid perfected security
         interest in such Pledged Collateral as security for the Secured

                                       54
<PAGE>   61

         Obligations (as such term is defined in the Pledge Agreements), to the
         extent contemplated by the Security Documents subject to no equal or
         prior security interests and prior to all other Liens. Upon the filing
         of the Uniform Commercial Code financing statements, and with respect
         to the common stock of Holdings, Lender's taking possession of the
         certificates evidencing that portion of the Pledged Collateral
         consisting of Holdings' stock certificates, duly endorsed by the
         Pledgor (as defined in the Pledge Agreement), the security interest in
         such Pledged Collateral will be a perfected security interest, subject
         to no equal or prior security interest and prior to all other Liens.

                           (b) GOVERNMENTAL AUTHORIZATIONS. No authorization,
         approval or other action by, and no notice to or filing with, any
         governmental authority or regulatory body is required for either (i)
         the pledge or grant by any Loan Party of the Liens purported to be
         created in favor of Lender pursuant to any of the Security Documents or
         (ii) the exercise by Lender of any rights or remedies in respect of any
         Collateral (whether specifically granted or created pursuant to any of
         the Security Documents or created or provided for by applicable law),
         except for filings or recordings contemplated by subsections 2.9(b) and
         4.15(a) and except as may be required, in connection with the
         disposition of any Pledged Collateral, by laws generally affecting the
         offering and sale of securities.

                           (c) ABSENCE OF FILINGS. Except for filings that
         relate to the UCC-3 termination statements in the possession of Lender
         on the New Effective Date, no effective UCC financing statement,
         fixture filing or other instrument similar in effect covering all or
         any part of the Collateral is on file in any filing or recording
         office.

                           (d) MARGIN REGULATIONS. The pledge of the Pledged
         Collateral pursuant to the Security Documents does not violate
         Regulation T, U or X of the Board of Governors of the Federal Reserve
         System.

                           (e) INFORMATION REGARDING COLLATERAL. All information
         supplied to Lender by or on behalf of any Loan Party with respect to
         any of the Collateral (in each case taken as a whole with respect to
         any particular Collateral) is accurate and complete in all material
         respects.

                  4.16     DISCLOSURE.

                  No representation or warranty of any Loan Party contained in
any Loan Document or Related Document or in any other document, certificate or
written statement furnished to Lender by or on behalf of such Loan Party for use
in connection with the transactions contemplated by this Agreement contains any
untrue statement of a material fact or omits to state a material fact (known to
such Loan Party, in the case of any document not furnished by it) necessary in
order to make the statements contained herein or therein not misleading in light
of the circumstances in which the same were made. Any projections and pro forma
financial information contained in such materials are based upon good faith
estimates and assumptions believed by each Loan Party to be

                                       55
<PAGE>   62

reasonable at the time made, it being recognized by Lender that such projections
as to future events are not to be viewed as facts and that actual results during
the period or periods covered by any such projections may differ from the
projected results. There are no facts known (or which should upon the reasonable
exercise of diligence be known) to any Loan Party (other than matters of a
general economic nature) that, individually or in the aggregate, could
reasonably be expected to result in a Material Adverse Effect and that have not
been disclosed herein or in such other documents, certificates and statements
furnished to Lender for use in connection with the transactions contemplated
hereby.

                  4.17     INSURANCE.

                  Each Loan Party maintains, with, to its knowledge, financially
sound and reputable insurers, insurance with respect to its properties and
business and the properties and business of its Subsidiaries, against loss or
damage of the kinds customarily insured against by corporations of established
reputation engaged in the same or similar business of such types and in such
amounts as are customarily carried under similar circumstances by such other
corporations. Attached as Schedule 4.17 hereto is a complete and accurate
description of all policies of insurance that will be in effect as of the New
Effective Date for the Loan Parties.

                  4.18     INTELLECTUAL PROPERTY.

                           (a) The Loan Parties own, or are licensed to use, the
         Intellectual Property and to the knowledge of the Loan Parties all such
         Intellectual Property is duly and properly registered, filed or issued
         in the appropriate office and jurisdictions for such registrations,
         filing or issuances, except for common law trademarks and unregistered
         copyrights.

                           (b) No material claim has been asserted by any Person
         with respect to the use of any such Intellectual Property, or
         challenging or questioning the validity or effectiveness of any such
         Intellectual Property. To each Loan Party's knowledge, the use of such
         Intellectual Property by such Loan Party does not infringe on the
         rights of any Person, subject to such claims and infringements as do
         not, in the aggregate, give rise to any liabilities on the part of any
         Loan Party that are material to such Loan Party. The consummation of
         the transactions contemplated by this Agreement will not impair the
         ownership of (or the license to use, as the case may be) any of such
         Intellectual Property by any Loan Party.

                  4.19     [INTENTIONALLY OMITTED].

                  4.20     ENVIRONMENTAL PROTECTION.

Except as set forth in Schedule 4.20 annexed hereto:

                           (a) the operations of each Loan Party (including,
         without limitation, all operations and conditions at or in the
         Facilities) comply in all material respects with all Environmental
         Laws;

                                       56
<PAGE>   63

                           (b) each Loan Party has obtained all Governmental
         Authorizations under Environmental Laws necessary to its operations,
         and all such Governmental Authorizations are in good standing, and each
         Loan Party is in compliance with all material terms and conditions of
         such Governmental Authorizations;

                           (c) no Loan Party has received (i) any notice or
         claim to the effect that it is or may be liable to any Person as a
         result of or in connection with any Hazardous Materials or (ii) any
         letter or request for information under Section 104 of the
         Comprehensive Environmental Response, Compensation, and Liability Act
         (42 U.S.C. ss. 9604) or comparable state laws;

                           (d) none of the operations of any Loan Party is
         subject to any judicial or administrative proceeding alleging the
         violation of or liability under any Environmental Laws which if
         adversely determined could reasonably be expected to have a Material
         Adverse Effect;

                           (e) no Loan Party nor any of its Facilities or
         operations are subject to any outstanding written order or agreement
         with any governmental authority or private party relating to (i) any
         Environmental Laws or (ii) any Environmental Claims;

                           (f) no Loan Party nor, to the best knowledge of each
         Loan Party, any predecessor of such Loan Party or its Subsidiaries has
         filed any notice under any Environmental Law indicating past or present
         treatment or Release of Hazardous Materials at any Facility, and none
         of any Loan Party's or any of its Subsidiaries' operations involves the
         generation, transportation, treatment, storage or disposal of hazardous
         waste, as defined under 40 C.F.R. Parts 260-270 or any state
         equivalent;

                           (g) no Hazardous Materials exist on or under any
         Facility in a manner that has a reasonably possibility of giving rise
         to an Environmental Claim having a Material Adverse Effect, and no Loan
         Party has filed any notice or report of a Release of any Hazardous
         Materials that has a reasonable possibility of giving rise to an
         Environmental Claim against Borrower or any of its Subsidiaries having
         a Material Adverse Effect;

                           (h) to the knowledge of each Loan Party, no Loan
         Party nor any of its predecessors has disposed of any Hazardous
         Materials in a manner that has a reasonable possibility of giving rise
         to an Environmental Claim having a Material Adverse Effect;

                           (i) no underground storage tanks or surface
         impoundments are on or at any Facility; and

                           (j) no Lien in favor of any Person relating to or in
         connection with any Environmental Claim against Borrower or any of its
         Subsidiaries has been filed or has been attached to any Facility.

                                       57
<PAGE>   64

                  4.21     YEAR 2000 COMPLIANCE.

                  Each of Borrower and its Domestic Subsidiaries has performed
all acts necessary to ensure that Borrower and its Domestic Subsidiaries, and
any business in which Borrower and its Domestic Subsidiaries hold a substantial
interest, are and remain Year 2000 Compliant.

                                   SECTION 5.
                        BORROWER'S AFFIRMATIVE COVENANTS

                  Borrower covenants and agrees that until payment in full of
all Loans and other Obligations, unless Lender shall otherwise give prior
written consent, Borrower shall perform, and shall cause each other Loan Party
to perform, all covenants in this Section 5.

                  5.1      FINANCIAL STATEMENTS AND OTHER REPORTS.

                  Borrower will maintain, and cause each of its Subsidiaries to
maintain, a system of accounting established and administered in accordance with
sound business practices to permit preparation of financial statements in
conformity with GAAP. Borrower will deliver to Lender:

                                    (i)      Monthly Financials: as soon as
                                             available and in any event within
                                             45 days after the end of each month
                                             ending after the Initial Effective
                                             Date, copies of the monthly cash
                                             flow statements, balance sheets and
                                             income statements for such month of
                                             Borrower and each Subsidiary, on a
                                             consolidated and consolidating
                                             basis, together with such
                                             additional reports and information
                                             provided to the Board of Directors
                                             of Borrower on a monthly or
                                             periodic basis;

                                    (ii)     Quarterly Financials: as soon as
                                             available and in any event within
                                             45 days after the end of each of
                                             Borrower's first three Fiscal
                                             Quarters, the consolidated balance
                                             sheet of Borrower and its
                                             Subsidiaries as at the end of such
                                             Fiscal Quarter and the related
                                             consolidated statements of income
                                             and cash flows of Borrower and its
                                             Subsidiaries for such Fiscal
                                             Quarter and for the period from the
                                             beginning of the then current
                                             Fiscal Year to the end of such
                                             Fiscal Quarter, setting forth in
                                             each case in comparative form the
                                             corresponding figures for the
                                             corresponding periods of the
                                             previous Fiscal Year and the
                                             corresponding figures from the
                                             Financial Plan for the current
                                             Fiscal Year, all in reasonable

                                       58
<PAGE>   65

                                             detail and certified by an
                                             executive officer of Borrower that
                                             they fairly present, in all
                                             material respects, the financial
                                             condition of Borrower and its
                                             Subsidiaries as at the dates
                                             indicated and the results of their
                                             operations and their cash flows for
                                             the periods indicated, subject to
                                             changes resulting from audit and
                                             normal year-end adjustments;

                                    (iii)    Year-End Financials: as soon as
                                             available and in any event within
                                             90 days after the end of each
                                             Fiscal Year, (a) the consolidated
                                             balance sheet of Borrower and its
                                             Subsidiaries as at the end of such
                                             Fiscal Year and the related
                                             consolidated statements of income
                                             and cash flows of Borrower and its
                                             Subsidiaries for such Fiscal Year,
                                             setting forth in each case in
                                             comparative form the corresponding
                                             figures for the previous Fiscal
                                             Year and the corresponding figures
                                             from the Financial Plan for the
                                             Fiscal Year covered by such
                                             financial statements, all in
                                             reasonable detail and certified by
                                             an executive officer of Borrower
                                             that they fairly present, in all
                                             material respects, the financial
                                             condition of Borrower and its
                                             Subsidiaries as at the dates
                                             indicated and the results of their
                                             operations and their cash flows for
                                             the periods indicated and (b) in
                                             the case of such consolidated
                                             financial statements, a report
                                             thereon of independent certified
                                             public accountants of recognized
                                             standing selected by Borrower and
                                             satisfactory to Lender, which
                                             report shall be unqualified, shall
                                             express no doubts about the ability
                                             of Borrower and its Subsidiaries to
                                             continue as a going concern, and
                                             shall state that such consolidated
                                             financial statements fairly
                                             present, in all material respects,
                                             the consolidated financial position
                                             of Borrower and its Subsidiaries as
                                             at the dates indicated and the
                                             results of their operations and
                                             their cash flows for the periods
                                             indicated in conformity with GAAP
                                             applied on a basis consistent with
                                             prior years (except as otherwise
                                             disclosed in such financial
                                             statements) and that the
                                             examination by such accountants in
                                             connection with such consolidated
                                             financial statements has been made
                                             in accordance with generally
                                             accepted auditing standards;

                                    (iv)     Officer's and Compliance
                                             Certificates: together with each
                                             delivery of financial statements of
                                             Borrower

                                       59
<PAGE>   66
                                             and its Subsidiaries pursuant
                                             to subdivisions (i), (ii) and (iii)
                                             above, (a) an Officer's Certificate
                                             of Borrower duly executed by an
                                             executive officer of Borrower
                                             stating that the signer has
                                             reviewed the terms of this
                                             Agreement and has made, or caused
                                             to be made under his or her
                                             supervision, a review in reasonable
                                             detail of the transactions and
                                             condition of Borrower and its
                                             Subsidiaries during the accounting
                                             period covered by such financial
                                             statements and that such review has
                                             not disclosed the existence during
                                             or at the end of such accounting
                                             period, and that the signer does
                                             not have knowledge of the existence
                                             as at the date of such Officer's
                                             Certificate, of any condition or
                                             event that constitutes an Event of
                                             Default or Default, or, if any such
                                             condition or event existed or
                                             exists, specifying the nature and
                                             period of existence thereof and
                                             what action Borrower has taken, is
                                             taking and proposes to take with
                                             respect thereto; and (b) a
                                             Compliance Certificate duly
                                             executed by an executive officer of
                                             Borrower demonstrating in
                                             reasonable detail compliance during
                                             and at the end of the applicable
                                             accounting periods with the
                                             restrictions contained in Section
                                             6;

                                    (v)      Reconciliation Statements: if, as a
                                             result of any change in accounting
                                             principles and policies from those
                                             used in the preparation of the
                                             audited financial statements
                                             referred to in subsection 4.3, the
                                             consolidated financial statements
                                             of Borrower and its Subsidiaries
                                             delivered pursuant to subdivisions
                                             (i), (ii), (iii) or (xii) of this
                                             subsection 5.1 will differ in any
                                             material respect from the
                                             consolidated financial statements
                                             that would have been delivered
                                             pursuant to such subdivisions had
                                             no such change in accounting
                                             principles and policies been made,
                                             then (a) together with the first
                                             delivery of financial statements
                                             pursuant to subdivision (i), (ii),
                                             (iii) or (xii) of this subsection
                                             5.1 following such change,
                                             consolidated financial statements
                                             of Borrower and its Subsidiaries
                                             for (y) the current Fiscal Year to
                                             the Initial Effective Date of such
                                             change and (z) the two full Fiscal
                                             Years immediately preceding the
                                             Fiscal Year in which such change is
                                             made, in each case prepared on a
                                             pro forma basis as if such change
                                             had been in effect during such
                                             periods, and (b) together with each
                                             delivery of financial statements
                                             pursuant

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<PAGE>   67

                                             to subdivision (i), (ii), (iii) or
                                             (xii) of this subsection 5.1
                                             following such change, a written
                                             statement of an executive officer
                                             of Borrower setting forth the
                                             differences (including any
                                             differences that would affect any
                                             calculations relating to the
                                             financial covenant set forth in
                                             subsection 6.7) which would have
                                             resulted if such financial
                                             statements had been prepared
                                             without giving effect to such
                                             change;

                                    (vi)     Accountants' Certification:
                                             together with each delivery of
                                             consolidated financial statements
                                             of Borrower and its Subsidiaries
                                             pursuant to subdivision (iii)
                                             above, a written statement by the
                                             independent certified public
                                             accountants giving the report
                                             thereon (a) stating that their
                                             audit examination has included a
                                             review of subsection 6.7 of this
                                             Agreement as it relates to
                                             accounting matters, (b) stating
                                             whether, in connection with their
                                             audit examination, any condition or
                                             event that constitutes an Event of
                                             Default or Default has come to
                                             their attention and, if such a
                                             condition or event has come to
                                             their attention, specifying the
                                             nature and period of existence
                                             thereof; provided, that such
                                             accountants shall not be liable by
                                             reason of any failure to obtain
                                             knowledge of any such Event of
                                             Default or Default that would not
                                             be disclosed in the course of their
                                             audit examination, and (c) stating
                                             that based on their audit
                                             examination nothing has come to
                                             their attention that causes them to
                                             believe either or both that the
                                             information contained in the
                                             certificates delivered therewith
                                             pursuant to subdivision (iv) above
                                             is not correct or that the matters
                                             set forth in the Compliance
                                             Certificates delivered therewith
                                             pursuant to clause (b) of
                                             subdivision (iv) above for the
                                             applicable Fiscal Year are not
                                             stated in accordance with the terms
                                             of this Agreement; provided,
                                             however, that in issuing such
                                             statements, such accountants shall
                                             not be required to exceed the scope
                                             of normal auditing procedures
                                             conducted in connection with their
                                             opinion referred to above;

                                    (vii)    SEC Filings and Press Releases:
                                             promptly upon their becoming
                                             available, copies of (a) all
                                             financial statements, reports,
                                             notices and proxy statements sent
                                             or made available generally by
                                             Borrower to its security holders or
                                             by any Subsidiary of Borrower

                                       61
<PAGE>   68

                                             to its security holders other than
                                             Borrower or another Subsidiary of
                                             Borrower, (b) all regular and
                                             periodic reports and all
                                             registration statements (other than
                                             on Form S-8 or a similar form) and
                                             prospectuses, if any, filed by
                                             Borrower or any of its Subsidiaries
                                             with any securities exchange or
                                             with the Securities and Exchange
                                             Commission or any governmental or
                                             private regulatory authority, and
                                             (c) all press releases and other
                                             statements made available generally
                                             by Borrower or any of its
                                             Subsidiaries to the public
                                             concerning material developments in
                                             the business of Borrower or any of
                                             its Subsidiaries;

                                    (viii)   Events of Default, etc.: promptly
                                             upon any officer of Borrower
                                             obtaining knowledge (a) of any
                                             condition or event that constitutes
                                             an Event of Default or Default, (b)
                                             that any Person has given any
                                             notice to Borrower or any of its
                                             Subsidiaries or taken any other
                                             action with respect to a claimed
                                             default or event or condition of
                                             the type referred to in subsection
                                             7.2, (c) of any condition or event
                                             that would be required to be
                                             disclosed in a current report filed
                                             by Borrower with the Securities and
                                             Exchange Commission on Form 8-K
                                             (Items 1, 2, 4, 5 and 6 of such
                                             Form as in effect on the Initial
                                             Effective Date) if Borrower were
                                             required to file such reports under
                                             the Exchange Act, or (d) of the
                                             occurrence of any event or change
                                             that has caused or evidences,
                                             either in any case or in the
                                             aggregate, a Material Adverse
                                             Effect, an Officer's Certificate
                                             specifying the nature and period of
                                             existence of such condition, event
                                             or change, or specifying the notice
                                             given or action taken by any such
                                             Person and the nature of such
                                             claimed Event of Default, Default,
                                             default, event or condition, and
                                             what action Borrower has taken, is
                                             taking and proposes to take with
                                             respect thereto;

                                    (ix)     Litigation or Other Proceedings:
                                             promptly upon any officer of any
                                             Loan Party obtaining knowledge of
                                             (X) the institution of, or
                                             non-frivolous threat of, any
                                             action, suit, proceeding (whether
                                             administrative, judicial or
                                             otherwise), governmental
                                             investigation or arbitration
                                             against or affecting any Loan Party
                                             or any property of any Loan Party
                                             (collectively, "PROCEEDINGS") not
                                             previously disclosed in writing

                                       62
<PAGE>   69

                                             by Loan Parties to Lender or (Y)any
                                             material development in any
                                             Proceeding that, in any case:

                                             1)      if adversely determined,
                                                     has a reasonable
                                                     possibility of giving rise
                                                     to a Material Adverse
                                                     Effect; or

                                             2)      seeks to enjoin or
                                                     otherwise prevent the
                                                     consummation of, or to
                                                     recover any damages or
                                                     obtain relief as a result
                                                     of, the transactions
                                                     contemplated hereby;

                                             written notice thereof together
                                             with such other information as may
                                             be reasonably available to Borrower
                                             to enable Lender and its counsel to
                                             evaluate such matters;

                                    (x)      ERISA Events: promptly upon
                                             becoming aware of the occurrence of
                                             or forthcoming occurrence of any
                                             ERISA Event, a written notice
                                             specifying the nature thereof, what
                                             action the Loan Parties or any of
                                             their respective ERISA Affiliates
                                             has taken, is taking or proposes to
                                             take with respect thereto and, when
                                             known, any action taken or
                                             threatened by the Internal Revenue
                                             Service, the Department of Labor or
                                             the PBGC with respect thereto;

                                    (xi)     ERISA Notices: with reasonable
                                             promptness, copies of (a) each
                                             Schedule B (Actuarial Information)
                                             to the annual report (Form 5500
                                             Series) filed by any Loan Party or
                                             any of their respective ERISA
                                             Affiliates with the Internal
                                             Revenue Service with respect to
                                             each Pension Plan as Lender shall
                                             request; (b) all notices received
                                             by Loan Party or any of their
                                             respective ERISA Affiliates from a
                                             Multiemployer Plan sponsor
                                             concerning an ERISA Event; and (c)
                                             copies of such other documents or
                                             governmental reports or filings
                                             relating to any Employee Benefit
                                             Plan as Lender shall reasonably
                                             request;

                                    (xii)    Financial Plans: as soon as
                                             practicable and in any event no
                                             later than 45 days after the
                                             beginning of each Fiscal Year, a
                                             consolidated and a consolidating
                                             plan and financial forecast for
                                             such Fiscal Year, including without
                                             limitation (a) statements of income
                                             and cash flows of Borrower and its

                                       63
<PAGE>   70

                                             Subsidiaries for such Fiscal Year
                                             and (b) such other information and
                                             projections as Lender may
                                             reasonably request;

                                    (xiii)   Board of Directors: with reasonable
                                             promptness, written notice of any
                                             change in the Board of Directors of
                                             Borrower;

                                    (xiv)    Material Contracts: promptly, and
                                             in any event within ten Business
                                             Days after any Material Contract of
                                             Borrower or any of its Subsidiaries
                                             is terminated or amended in a
                                             manner that is materially adverse
                                             to Borrower or such Subsidiary, as
                                             the case may be, or any new
                                             Material Contract is entered into,
                                             a written statement describing such
                                             event with copies of such material
                                             amendments or new contracts, and an
                                             explanation of any actions being
                                             taken with respect thereto;

                                    (xv)     UCC Search Report: as promptly as
                                             practicable after the date of
                                             delivery to Lender of any UCC
                                             financing statement executed by any
                                             Loan Party pursuant to subsection
                                             3.2(h) or 2.7, copies of completed
                                             UCC searches evidencing the proper
                                             filing, recording and indexing of
                                             such UCC financing statement and
                                             listing all other effective
                                             financing statements that name such
                                             Loan Party as debtor, together with
                                             copies of all such other financing
                                             statements not previously delivered
                                             to Lender by or on behalf of
                                             Borrower or such Loan Party;

                                    (xvi)    Other Information: with reasonable
                                             promptness, such other information
                                             and data with respect to Borrower
                                             or any of its Subsidiaries as from
                                             time to time may be reasonably
                                             requested by Lender.

                  5.2      EXISTENCE, ETC.

                  Except as permitted under subsection 6.8, each Loan Party
shall at all times (a) preserve and keep in full force and effect its existence
and all rights and franchises material to its business and (b) comply in all
material respects with all material provisions of all franchises and licenses,
material agreements and leases to which it is a party, and shall suffer no loss
or forfeiture thereof or thereunder.

                                       64
<PAGE>   71

                  5.3      PAYMENT OF TAXES AND CLAIMS; TAX CONSOLIDATION.

                           (a) Each Loan Party will, and will cause each of its
         Subsidiaries to, pay all taxes, assessments and other governmental
         charges imposed upon it or any of its properties or assets or in
         respect of any of its income, businesses or franchises before any
         penalty accrues thereon, and all claims (including claims for labor,
         services, materials and supplies) for sums that have become due and
         payable and that by law have or may become a Lien upon any of its
         properties or assets, prior to the time when any penalty or fine shall
         be incurred with respect thereto; provided, that no such charge or
         claim need be paid if it is being contested in good faith by
         appropriate proceedings promptly instituted and diligently conducted,
         so long as (1) such reserve or other appropriate provision, if any, as
         shall be required in conformity with GAAP shall have been made therefor
         and (2) in the case of a charge or claim which has or may become a Lien
         against any of the Collateral, such contest proceedings conclusively
         operate to stay the sale of any portion of the Collateral to satisfy
         such charge or claim.

                           (b) No Loan Party will file or consent to the filing
         of any consolidated income tax return with any Person (other than
         Borrower).

                  5.4      MAINTENANCE OF PROPERTIES; INSURANCE; APPLICATION OF
NET INSURANCE/ CONDEMNATION PROCEEDS.

                           (a) MAINTENANCE OF PROPERTIES. Each Loan Party will,
         and will cause each of its Subsidiaries to, maintain or cause to be
         maintained in good repair, working order and condition, ordinary wear
         and tear excepted, all material properties used or useful in the
         business of such Loan Party and its Subsidiaries (including all
         Intellectual Property, except for any trademark and trade name
         identified by a Loan Party in writing to Lender, that such Loan Party
         has determined, in its best business judgment, to cease using because
         such trademark or trade name no longer possess any material value to
         the business and operations of such Loan Party) and from time to time
         will make or cause to be made all appropriate repairs, renewals and
         replacements thereof.

                           (b) INSURANCE. Each Loan Party will maintain or cause
         to be maintained, with financially sound and reputable insurers,
         insurance with respect to liabilities, losses or damage in respect of
         the assets, properties and businesses of such Loan Party and its
         Subsidiaries as may Customarily be carried or maintained under similar
         circumstances by corporations of established reputation engaged in
         similar businesses, in each case in such amounts (giving effect to
         self-insurance), with such deductibles, covering such risks and
         otherwise on such terms and conditions as shall be customary for
         corporations similarly situated in the industry. Without limiting the
         generality of the foregoing, each Loan Party will maintain or cause to
         be maintained replacement value casualty insurance on the Collateral
         under such policies of insurance, with such insurance companies, in
         such amounts, with such deductibles, and covering such risks as are at
         all times

                                       65
<PAGE>   72

         satisfactory to Lender in its commercially reasonable judgment. Each
         such policy of insurance shall name Lender as additional named insured
         or loss payee thereunder and provide for at least 30 days' prior
         written notice to Lender of any material modification or cancellation
         of such policy.

                           (c) APPLICATION OF NET INSURANCE/CONDEMNATION
         PROCEEDS.

                                    (i)      Business Interruption Insurance.
                                             Upon receipt by Borrower or any of
                                             its Subsidiaries of any proceeds of
                                             business interruption insurance, if
                                             any, constituting Net
                                             Insurance/Condemnation Proceeds,
                                             (a) so long as no Event of Default
                                             or Default shall have occurred and
                                             be continuing, Borrower may retain
                                             and apply such Net
                                             Insurance/Condemnation Proceeds for
                                             working capital purposes, and (b)
                                             if an Event of Default or Default
                                             shall have occurred and be
                                             continuing, Borrower shall apply an
                                             amount equal to such Net
                                             Insurance/Condemnation Proceeds to
                                             prepay the Loans.

                                    (ii)     Casualty Insurance/Condemnation
                                             Proceeds. Upon receipt by any
                                             Borrower or any of its Subsidiaries
                                             of any Net Insurance/Condemnation
                                             Proceeds other than from business
                                             interruption insurance, (a) so long
                                             as no Event of Default or Default
                                             shall have occurred and be
                                             continuing and such proceeds are
                                             less than $1,000,000 in the
                                             aggregate, Borrower shall, or shall
                                             cause one or more of its
                                             Subsidiaries to, promptly and
                                             diligently apply such Net
                                             Insurance/Condemnation Proceeds to
                                             pay or reimburse the costs of
                                             repairing, restoring or replacing
                                             the assets in respect of which such
                                             Net Insurance/Condemnation Proceeds
                                             were received or, to the extent not
                                             so applied within 180 days of such
                                             receipt, to prepay the Term Loan,
                                             and (b) if (y) an Event of Default
                                             or Default shall have occurred and
                                             be continuing or (z) such proceeds
                                             are in an aggregate amount of
                                             $1,000,000 or more, Borrower shall
                                             apply an amount equal to such Net
                                             Insurance/Condemnation Proceeds to
                                             prepay the Term Loan and, upon
                                             payment in full of the Term Loan,
                                             all other Obligations then
                                             outstanding.

                                    (iii)    Net Insurance/Condemnation Proceeds
                                             Received by Lender. Upon receipt by
                                             Lender of any Net
                                             Insurance/Condemnation Proceeds as
                                             loss payee at a time that Borrower
                                             would have been required to apply
                                             such Net Insurance/Condemnation
                                             Proceeds (if it had received them
                                             directly) to prepay the Term Loan
                                             (and if an Event of Default is
                                             continuing, all other Obligations),
                                             Lender shall, and Borrower hereby
                                             authorizes Lender to,

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<PAGE>   73

                                             apply such Net Insurance/
                                             Condemnation Proceeds to prepay the
                                             Term Loan (and if an Event of
                                             Default is continuing, all other
                                             Obligations) and if Borrower would
                                             not be required to so apply such
                                             proceeds at such time then Lender
                                             shall distribute such proceeds to
                                             Borrower to apply as set forth in
                                             subsections 5.4(c)(i) or (ii), as
                                             applicable.

                  5.5      INSPECTION RIGHTS; LENDER MEETING.

                           (a) INSPECTION RIGHTS. Borrower shall, and shall
         cause each of its Subsidiaries to, permit any authorized
         representatives designated by Lender to visit and inspect any of the
         properties of Borrower or any of its Subsidiaries, to inspect, copy and
         take extracts from its and their financial and accounting records, and
         to discuss its and their affairs, finances and accounts with its and
         their officers and independent public accountants (provided, that
         Borrower may, if it so chooses, be present at or participate in any
         such discussion), all upon reasonable notice and at such reasonable
         times during normal business hours and as often as may reasonably be
         requested.

                           (b) LENDER MEETING. Borrower will, upon the request
         of Lender, participate in a meeting with Lender once during each Fiscal
         Year to be held at Borrower's corporate offices (or at such other
         location as may be agreed to by Borrower and Lender) at such time as
         may be agreed to by Borrower and Lender.

                  5.6      COMPLIANCE WITH LAWS, ETC.

                           (a) COMPLIANCE GENERALLY . Borrower shall comply, and
         shall cause each of its Subsidiaries to comply with the requirements of
         all applicable laws, rules, regulations and orders of any governmental
         authority, noncompliance with which could reasonably be expected to
         cause, individually or in the aggregate, a Material Adverse Effect.

                           (b) ENVIRONMENTAL LAWS. Borrower shall, and shall
         cause its Subsidiaries to, exercise all reasonable due diligence in
         order to comply and cause (i) all tenants under any leases or occupancy
         agreements affecting any portion of the Facilities and (ii) all other
         Persons on or occupying such property, to comply with all Environmental
         Laws.

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<PAGE>   74

                  5.7      ENVIRONMENTAL DISCLOSURE AND INSPECTION.

                           (a) ENVIRONMENTAL REVIEW AND INVESTIGATION. Borrower
         agrees that Lender may, at any time that Lender determines in its
         reasonable discretion that any violation of Environmental Laws or risk
         of any Environmental Claim may exist, (i) retain, at Borrower's
         expense, an independent professional consultant to review any
         environmental audits, investigations, analyses and reports relating to
         Hazardous Materials prepared by or for Borrower or any of its
         Subsidiaries and (ii) conduct its own investigation of any Facility;
         provided, that, in the case of any Facility no longer owned, leased,
         operated or used by Borrower or any of its Subsidiaries. Borrower shall
         only be obligated to use its best efforts to obtain permission for
         Lender's professional consultant to conduct an investigation of such
         Facility. For purposes of conducting such a review and/or
         investigation, Borrower hereby grants to Lender and its agents,
         employees, consultants and contractors the right to enter into or onto
         any Facilities currently owned, leased. operated or used by Borrower or
         any of its Subsidiaries and to perform such tests on such property
         (including taking samples of soil, groundwater and suspected
         asbestos-containing materials) as are reasonably necessary in
         connection therewith. Any such investigation of any Facility shall be
         conducted, unless otherwise agreed to by Borrower and Lender, during
         normal business hours and, to the extent reasonably practicable, shall
         be conducted so as not to interfere with the ongoing operations at such
         Facility or to cause any damage or loss to any property at such
         Facility. Borrower and Lender hereby acknowledge and agree that any
         report of any investigation conducted at the request of Lender pursuant
         to this subsection 5.7(a) will be obtained and shall be used by Lender
         for the purposes of Lender's internal credit decisions, to monitor and
         police the Loan and to protect Lender's security interests created by
         the Loan Documents. Lender agrees to deliver a copy of any such report
         to Borrower with the understanding that Borrower acknowledges and
         agrees that (x) it will indemnify ind hold harmless Lender from any
         costs, losses or liabilities relating to Borrower's use of or reliance
         on such report, (y) Lender makes no representation or warranty with
         respect to such report, and (z) by delivering such report to Borrower,
         Lender is not requiring or recommending the implementation of any
         suggestions or recommendations contained in such report.

                  (b) ENVIRONMENTAL DISCLOSURE. Borrower will deliver to Lender:

                                    (i)      Environmental Audits and Reports.
                                             As soon as practicable following
                                             receipt thereof, copies of all
                                             environmental audits,
                                             investigations, analyses and
                                             reports of any kind or character,
                                             whether prepared by personnel of
                                             Borrower or any of its Subsidiaries
                                             or by independent consultants,
                                             governmental authorities or any
                                             other Persons, with respect to
                                             significant environmental matters
                                             at any Facility which, individually
                                             or in the aggregate, could

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<PAGE>   75

                                             reasonably be expected to result in
                                             a Material Adverse Effect or with
                                             respect to any Environmental Claims
                                             which, individually or in the
                                             aggregate, could reasonably be
                                             expected to result in a Material
                                             Adverse Effect;

                                    (ii)     Notice of Certain Releases,
                                             Remedial Actions, Etc. Promptly
                                             upon the occurrence thereof,
                                             written notice describing in
                                             reasonable detail (a) any Release
                                             required to be reported to any
                                             federal, state or local
                                             governmental or regulatory agency
                                             under any applicable Environmental
                                             Laws, (b) any remedial action taken
                                             by Borrower or any other Person in
                                             response to (1) any Hazardous
                                             Materials Activities the existence
                                             of which has a reasonable
                                             possibility of resulting in one or
                                             more Environmental Claims having,
                                             individually or in the aggregate, a
                                             Material Adverse Effect, or (2) any
                                             Environmental Claims that,
                                             individually or in the aggregate,
                                             have a reasonable possibility of
                                             resulting in a Material Adverse
                                             Effect.

                                    (iii)    Written Communications Regarding
                                             Environmental Claims, Releases,
                                             Etc. As soon as practicable
                                             following the sending or receipt
                                             thereof by Borrower or any of its
                                             Subsidiaries, a copy of any and all
                                             written communications with respect
                                             to (a) any Environmental Claims
                                             that, individually or in the
                                             aggregate, have a reasonable
                                             possibility of giving rise to a
                                             Material Adverse Effect, (b) any
                                             Release required to be reported to
                                             any federal, state or local
                                             governmental or regulatory agency,
                                             and (c) any request for information
                                             from any governmental agency that
                                             suggests such agency is
                                             investigating whether Borrower or
                                             any of its Subsidiaries may be
                                             potentially responsible for any
                                             Hazardous Materials Activity.

                                    (iv)     Notice of Certain Proposed Actions
                                             Having Environmental Impact. Prompt
                                             written notice describing in
                                             reasonable detail (a) any proposed
                                             acquisition of stock, assets, or
                                             property by Borrower or any of its
                                             Subsidiaries that could reasonably
                                             be expected to (1) expose Borrower
                                             or any of its Subsidiaries to, or
                                             result in, Environmental Claims
                                             that could reasonably be expected
                                             to have, individually or in the
                                             aggregate, a Material Adverse

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<PAGE>   76

                                             Effect or (2) affect the ability of
                                             Borrower or any of its Subsidiaries
                                             to maintain in full force and
                                             effect all material Governmental
                                             Authorizations required under any
                                             Environmental Laws for their
                                             respective operations and (b) any
                                             proposed action to be taken by
                                             Borrower or any of its
                                             Subsidiaries to commence
                                             manufacturing or other industrial
                                             operations or to modify current
                                             operations in a manner that could
                                             reasonably be expected to subject
                                             Borrower or any of its Subsidiaries
                                             to any material additional
                                             obligations or requirements
                                             under any Environmental Laws that
                                             could reasonably be expected to
                                             have, individually or in the
                                             aggregate, a Material Adverse
                                             Effect.

                                    (v)      Other Information. With reasonable
                                             promptness, such other documents
                                             and information as from time to
                                             time may be reasonably requested by
                                             Lender in relation to any matters
                                             disclosed pursuant to this
                                             subsection 5.7.

                           (c) BORROWER'S ACTIONS REGARDING HAZARDOUS MATERIALS
         ACTIVITIES, ENVIRONMENTAL CLAIMS AND VIOLATIONS OF ENVIRONMENTAL LAWS.
         Borrower or any of its Subsidiaries shall promptly take, and shall
         cause each of its Subsidiaries promptly to take:

                                    (i)      Remedial Actions Relating to
                                             Hazardous Materials Activities. Any
                                             and all investigations, studies,
                                             sampling, testing, abatement,
                                             cleanup, removal, remediation or
                                             other response actions required by
                                             Environmental Laws to be undertaken
                                             by Borrower to remove, remediate,
                                             clean up or abate any Hazardous
                                             Materials Activity on or under any
                                             Facility that is in violation of
                                             any Environmental Laws or that
                                             presents a material risk of giving
                                             rise to any Environmental Claim
                                             against Borrower or any of its
                                             Subsidiaries. In the event Borrower
                                             or any of its Subsidiaries
                                             undertakes any such action,
                                             Borrower or such Subsidiaries shall
                                             conduct and complete such action in
                                             compliance with all applicable
                                             Environmental Laws and in
                                             accordance with the orders and
                                             directives of all federal, state
                                             and local governmental authorities
                                             except when, and only to the extent
                                             that, Borrower or such Subsidiary's
                                             liability with respect to such
                                             Hazardous Materials Activity is
                                             being contested in good faith by
                                             Borrower or. such Subsidiary; and

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<PAGE>   77

                                    (ii)     Actions with Respect to
                                             Environmental Claims and Violations
                                             of Environmental Laws. Any and all
                                             actions necessary to (i) cure any
                                             material violation of applicable
                                             Environmental Laws by such Loan
                                             Party that could reasonably be
                                             expected to have, individually or
                                             in the aggregate, a Material
                                             Adverse Effect and (ii) make an
                                             appropriate response to any
                                             Environmental Claim against
                                             Borrower or any of its Subsidiaries
                                             and discharge any obligations it
                                             may have to any Person thereunder
                                             where failure to do so could
                                             reasonably be expected to have,
                                             individually or in the aggregate, a
                                             Material Adverse Effect.

                  5.8      COMPLIANCE WITH RELATED DOCUMENTS; USE OF PROCEEDS.

                  Each Loan Party shall comply at all times with each of the
covenants under the Related Documents to which such Loan Party is a party.
Material waivers from compliance by such Loan Party or any other Person with the
obligations specified in such Related Documents shall not be effective as
waivers hereunder unless consented to in writing by Lender.

                  The proceeds of the Term Loan were applied by Borrower on the
Initial Effective Date to (i) partially finance the Telecrafter Acquisition,
(ii) to pay off the Bridge Loan and (iii) for working capital and general
corporate purposes of Borrower and its Subsidiaries, in compliance with the
terms set forth in the Original Credit Agreement.

                  5.9      ADDITIONAL REAL PROPERTY COLLATERAL.

                  Upon the request of Lender, at any time, Borrower and its
Subsidiaries shall take all action necessary or reasonably advisable such that
Lender shall receive a Lien on all real property interests of Borrower and its
Subsidiaries acquired after the Initial Effective Date, including, without
limitation, all leasehold interests, and other documents and instruments as
requested by Lender at the time of acquisition of such property.

                  5.10     DISSOLUTION OF INACTIVE SUBSIDIARIES.

                  Within 10 Business Days of the New Effective Date, Borrower
shall have received evidence that all documents of dissolution with respect to
the Inactive Subsidiaries have been duly prepared and filed with all appropriate
governmental authorities and agencies. Borrower shall not permit any Inactive
Subsidiary to incur any assets or liabilities after the Effective Date.

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<PAGE>   78

                                   SECTION 6.
                          BORROWER'S NEGATIVE COVENANTS

                  Borrower covenants and agrees that until payment in full of
the Loan and other Obligations, unless Lender shall otherwise give prior written
consent, Borrower shall perform, and Borrower shall cause each of its
Subsidiaries to perform, all covenants in this Section 6.

                  6.1      INDEBTEDNESS.

                  Borrower shall not, and Borrower shall not suffer or permit
any of its Subsidiaries to, directly or indirectly, create, incur, assume or
guaranty, or otherwise become or remain directly or indirectly liable with
respect to, any Indebtedness, except:

                                    (i)      Borrower and its Subsidiaries may
                                             become and remain liable with
                                             respect to the Obligations;

                                    (ii)     Borrower and its Subsidiaries may
                                             become and remain liable with
                                             respect to Contingent Obligations
                                             permitted by subsection 6.5 and,
                                             upon any matured obligations
                                             actually arising pursuant thereto,
                                             the Indebtedness corresponding to
                                             the Contingent Obligations so
                                             extinguished;

                                    (iii)    Borrower and its Subsidiaries may
                                             become and remain liable with
                                             respect to Indebtedness in respect
                                             of Capital Leases not to exceed
                                             $400,000 notional amount at any
                                             time;

                                    (iv)     Borrower may become and remain
                                             liable with respect to Indebtedness
                                             payable to any of its wholly-owned
                                             Subsidiaries, and any wholly-owned
                                             Subsidiary of Borrower may become
                                             and remain liable with respect to
                                             Indebtedness to Borrower or any
                                             other wholly-owned Subsidiary of
                                             Borrower; provided, that (a) all
                                             such intercompany Indebtedness
                                             shall be evidenced by promissory
                                             notes, (b) all such intercompany
                                             Indebtedness owed by Borrower to
                                             any of its Subsidiaries shall be
                                             subordinated (I) in right of
                                             payment to the payment of any
                                             payments currently or past due
                                             constituting Obligations and (II)
                                             upon the occurrence of a Default or
                                             Event of Default, in right of
                                             payment to the payment in full of
                                             the Obligations pursuant to the
                                             terms of the applicable promissory
                                             notes or an intercompany
                                             subordination agreement, and (c)
                                             any payment by any Subsidiary of
                                             Borrower under any

                                       72
<PAGE>   79

                                             guaranty of the Obligations shall
                                             result in a pro tanto reduction of
                                             the amount of any intercompany
                                             Indebtedness owed by such
                                             Subsidiary to Borrower or to any of
                                             its Subsidiaries for whose benefit
                                             such payment is made;

                                    (v)      So long as no Default or Event of
                                             Default is continuing at the date
                                             of incurrence thereof, Borrower and
                                             its Subsidiaries may become and
                                             remain liable with respect to
                                             secured purchase money Indebtedness
                                             in an aggregate amount not to
                                             exceed $500,000 at any time
                                             outstanding; provided, that such
                                             Indebtedness shall be secured only
                                             by the assets purchased with the
                                             proceeds thereof and at least 80%
                                             of the purchase price of such
                                             assets shall be provided by the
                                             proceeds thereof;

                                    (vi)     [Intentionally Omitted];

                                    (vii)    Borrower may remain liable with
                                             respect to the O'Leary Seller Note
                                             and the Seller Note existing on the
                                             Initial Effective Date;

                                    (viii)   [intentionally omitted]

                                    (ix)     Following the Effective Date so
                                             long as no Event of Default is
                                             continuing, Borrower may become and
                                             remain liable with respect to
                                             additional Permitted Subordinated
                                             Debt Financing (including, without
                                             limitation, Seller Notes and the
                                             O'Leary Seller Note).

                                    (x)      Any Subsidiary of Borrower may
                                             become and remain liable with
                                             respect to other Indebtedness in an
                                             aggregate principal amount not to
                                             exceed $250,000 at any time
                                             outstanding.

                  6.2      LIENS AND RELATED MATTERS.

                           (a) PROHIBITION ON LIENS. Borrower shall not, and
         Borrower shall not permit any of its Subsidiaries to, directly or
         indirectly, create, incur, assume or permit to exist any Lien on or
         with respect to any property or asset of any kind (including any
         document or instrument in respect of goods or accounts receivable) of
         Borrower or any of its Subsidiaries, whether now owned or hereafter
         acquired, or any income or profits therefrom, or file or permit the
         filing of, or permit to remain in effect, any financing statement or
         other similar notice of any Lien with respect to any such property,
         asset, income or profits under the

                                       73
<PAGE>   80

         Uniform Commercial Code of any State or under any similar recording or
         notice statute, except:

                                    (i)     Permitted Encumbrances;

                                    (ii)    Liens granted pursuant to the
                                            Security Documents;

                                    (iii)   Borrower may grant purchase money
                                            Liens securing purchase money
                                            Indebtedness permitted pursuant to
                                            subsection 6.1(v); provided, that
                                            such Liens encumber only the assets
                                            so purchased;

                                    (iv)    [intentionally omitted]; and

                                    (v)     the Liens described on Schedule 6.2.

                           (b) EQUITABLE LIEN IN FAVOR OF LENDER. If Borrower or
         any of Borrower's Subsidiaries shall create or assume any Lien upon any
         of its properties or assets, whether now owned or hereafter acquired,
         other than Liens excepted by the provisions of subsection 6.2(a), it
         shall make or cause to be made effective provision whereby the
         Obligations will be secured by such Lien equally and ratably with any
         and all other Indebtedness secured thereby as long as any such
         Indebtedness shall be so secured; provided, that, notwithstanding the
         foregoing, this covenant shall not be construed as a consent by Lender
         to the creation or assumption of any such Lien not permitted by the
         provisions of subsection 6.2(a).

                           (c) NO FURTHER NEGATIVE PLEDGES. Except with respect
         to specific property encumbered to secure payment of particular
         Indebtedness or to be sold pursuant to an executed agreement with
         respect to an Asset Sale, neither Borrower nor any of Borrower's
         Subsidiaries shall, after the Initial Effective Date, enter into any
         agreement (other than an agreement prohibiting only the creation of
         Liens securing Subordinated Indebtedness) prohibiting the creation or
         assumption of any Lien upon any of its properties or assets, whether
         now owned or hereafter acquired.

                  6.3      DIVIDENDS; SELLER NOTES.

                           RESTRICTIONS ON ISSUANCES, DIVIDENDS. Borrower will
         not, and Borrower will not permit any of its Subsidiaries to (i) pay
         dividends or make any other distributions on any of Borrower's or any
         Subsidiary's capital stock, (ii) repay or prepay any Indebtedness owed
         by Borrower to any member of the Investor Group or any other
         shareholder or investor in Borrower, (iii) repay or prepay any
         Indebtedness with respect to the Seller Notes or any other Indebtedness
         owed by Borrower or any Subsidiary to any shareholder or investor in
         Borrower or such Subsidiary, (iv) make loans or advances to any member
         of the Investor Group or any other shareholder or investor in Borrower,
         (v) make loans or advances to any shareholder or investor in a
         Subsidiary, (vi) transfer any

                                       74
<PAGE>   81

         of its property or assets to any member of the Investor Group or any
         other shareholder or investor in Borrower; or (vii) transfer any of its
         property or assets to any shareholder or investor in such Subsidiary;
         provided, that, Borrower may make payments on the Seller Notes in the
         manner permitted under Section 6.6 hereof; and provided, further, that
         each Subsidiary of Borrower may pay dividends or make any other
         distributions or payments to any Loan Party in order to satisfy any
         obligations under the Tax Sharing Agreement; and provided, further, any
         Subsidiary may (and shall) take any one or more of the above-described
         actions if the purpose of such action is to enable Borrower to fulfill
         its obligations under this Agreement; and provided, further, any
         Subsidiary may take the actions described in subsection (i) hereof if
         and only if such payment or distribution ultimately is paid to either
         Holdings or Borrower.

                  6.4      INVESTMENTS; JOINT VENTURES.

                  Borrower shall not, and Borrower shall not permit any of
Borrower's Subsidiaries to, directly or indirectly, make or own any Investment
in any Person, including any Joint Venture or make Consolidated Capital
Expenditures, except, so long as no Event of Default is continuing:

                                    (i)      Borrower and Borrower's
                                             Subsidiaries may make and own
                                             Investments in Cash and Cash
                                             Equivalents;

                                    (ii)     Borrower and its Subsidiaries may
                                             make intercompany loans to the
                                             extent permitted under subsection
                                             6.1(iv);

                                    (iii)    Borrower and its Subsidiaries may
                                             make Consolidated Capital
                                             Expenditures in any Fiscal Year in
                                             an aggregate amount not to exceed
                                             the sum of (i) $4,800,000 and (ii)
                                             the unused portion (if any) of the
                                             maximum amount of Consolidated
                                             Capital Expenditures permitted
                                             hereunder for the then immediately
                                             preceding Fiscal Year (and without
                                             giving effect to any additional
                                             amounts permitted during such
                                             preceding Fiscal Year because of
                                             this clause (ii));

                                    (iv)     Borrower and its Subsidiaries may
                                             make Investments permitted pursuant
                                             to subsection 6.8; and

                                    (v)      following the consummation of an
                                             Initial Public Offering, Borrower
                                             may make additional Investments
                                             that are directly related to the
                                             business of providing communication
                                             services on an outsourced basis and
                                             related activities, that, in the

                                       75
<PAGE>   82

                                             aggregate at any time outstanding,
                                             do not exceed $500,000.

                  6.5      CONTINGENT OBLIGATIONS.

                  Borrower shall not, and Borrower shall not permit any of its
Subsidiaries to, directly or indirectly, create or become or remain liable with
respect to any Contingent Obligation, except:

                                    (i)      Subsidiaries of Borrower may become
                                             and remain liable with respect to
                                             Contingent Obligations in respect
                                             of the Loan Documents;

                                    (ii)     Borrower and its Subsidiaries may
                                             become and remain liable with
                                             respect to other Contingent
                                             Obligations; provided, that the
                                             maximum aggregate liability,
                                             contingent or otherwise, of
                                             Borrower and its Subsidiaries in
                                             respect of all such Contingent
                                             Obligations shall at no time exceed
                                             $500,000; and

                                    (iii)    Contingent Obligations with respect
                                             to transactions permitted pursuant
                                             to subsection 6.8.

                  6.6      RESTRICTED JUNIOR PAYMENTS.

                  Borrower shall not, and Borrower shall not permit any of its
Subsidiaries to, directly or indirectly, declare, order, pay, make or set apart
any sum for any Restricted Junior Payment, provided, that, so long as no Event
of Default is continuing and no accrued and unpaid interest is owing on the
Loans, (i) Borrower may make scheduled interest and principal payments on the
Seller Notes not more than once each Fiscal Year from Consolidated Excess Cash
Flow remaining following payment in full for such Fiscal Year of amounts
required to be paid pursuant to subsection 2.4(h) hereof, (ii) Borrower may make
scheduled interest and principal payments on the O'Leary Seller Note from the
Net Cash Proceeds of a Permitted Equity Financing; (iii) following the
consummation of an Initial Public Offering, Borrower may prepay amounts
outstanding under the Seller Notes and the O'Leary Seller Note from either (x)
the Consolidated Excess Cash Flow remaining following payment in full for such
Fiscal Year of amounts required to be paid pursuant to subsection 2.4(h) hereof,
or (y) the Net Cash Proceeds obtained from an Initial Public Offering; and (iv)
following the consummation of an Initial Public Offering, Borrower may make
payments to shareholders in lieu of the issuance of fractional shares and may
acquire or make cash payments in lieu of, shares of capital stock of warrants
for capital stock of Borrower held by any officer or employee up to the
termination of such Person's employment with Borrower or any of its
Subsidiaries.

                                       76
<PAGE>   83

                  6.7      FINANCIAL COVENANT.

                           (a) TOTAL LEVERAGE RATIO. The Total Leverage Ratio
         for each day of the rolling four quarter period ending as of each day
         during each period listed below shall not exceed the ratio indicated
         below:

<TABLE>
<CAPTION>
                  Period                                                Ratio
                  ------                                                -----

         <S>                                                           <C>
         Initial Effective Date through December 30, 1999              3.5:1.0

         December 31, 1999 through June 29, 2000                       3.0:1.0

         June 30, 2000 through December 30, 2000                       2.5:1.0

         at all times thereafter                                       2.0:1.0
</TABLE>

                           (b) FIXED CHARGE COVERAGE RATIO. The Fixed Charge
         Coverage Ratio for the rolling four quarter period ending as at the end
         of any fiscal quarter shall not be less than 1.25:1.0.

                  6.8 RESTRICTION ON FUNDAMENTAL CHANGES; ASSET SALES AND
ACQUISITIONS.

                  Borrower shall not, and shall not permit any of its
Subsidiaries to, alter the corporate, capital or legal structure of Borrower or
any of its Subsidiaries, or enter into any transaction of merger or
consolidation, or (except with respect to Inactive Subsidiaries) liquidate,
wind-up or dissolve itself (or suffer any liquidation or dissolution), or
convey, sell, lease, sub-lease, transfer or otherwise dispose of, in one
transaction or a series of transactions, all or any part of its business,
property or fixed assets, whether now owned or hereafter acquired (other than
sales including the sale, transfer, replacement or other disposition of
equipment and inventory, leases or sub-leases of its property, in each case, in
the ordinary course of business), or acquire by purchase or otherwise all or
substantially all the business, property or fixed assets of, or stock or other
evidence of beneficial ownership of, any Person or any division or line of
business of any Person, or acquire or create any additional Subsidiary;
provided, that, so long as no Default or Event of Default is continuing,
Borrower and its Subsidiaries may consummate a Permitted Acquisition, so long as
the payment of the purchase price and the financing of such Permitted
Acquisition shall not diminish (or result in the reduction with respect to the
immediately following Fiscal Year), of amounts payable pursuant to Section
2.4(h) hereof, and provided, further, the foregoing shall not restrict (i) the
Loan Parties from making Capital Expenditures otherwise permitted under
subsection 6.4(iii) (ii) Holdings or any other Subsidiary from acquiring or
forming any Subsidiary so long as contemporaneous with such acquisition or
formation such Subsidiary becomes a Subsidiary Guarantor, executes the
Subsidiary Security Agreement and any other Security Documents reasonably
required by Lender, in order to grant to Lender a first priority perfected Lien
(other than Permitted Liens) in its Assets in accordance with the terms of such
Security Documents, and the direct parent of such Subsidiary pledges all the
equity interests of such Subsidiary to Lender pursuant to the Holdings Pledge

                                       77
<PAGE>   84

Agreement, (iii) so long as no Event of Default is continuing, any Asset Sale,
so long as the Net Cash Proceeds thereof are applied in the manner required by
this Agreement.

                  6.9      SALES AND LEASE-BACKS.

                  Borrower shall not, and shall not permit any of its
Subsidiaries to, directly or indirectly, become or remain liable as lessee or as
a guarantor or other surety with respect to any lease, whether an Operating
Lease or a Capital Lease, of any property (whether real, personal or mixed),
whether now owned or hereafter acquired, (i) which Borrower or any of its
Subsidiaries has sold or transferred or is to sell or transfer to any other
Person (other than Borrower or any of its Subsidiaries) or (ii) which Borrower
or any of its Subsidiaries intends to use for substantially the same purpose as
any other property which has been or is to be sold or transferred by Borrower or
any of its Subsidiaries to any Person (other than Borrower or any of its
Subsidiaries) in connection with such lease.

                  6.10     SALE OR DISCOUNT OF RECEIVABLES.

                  Borrower shall not, and shall not permit any of its
Subsidiaries to, directly or indirectly, sell with recourse, or discount or
otherwise sell for less than the face value thereof, any of its notes or
accounts receivable.

                  6.11     TRANSACTIONS WITH SHAREHOLDERS AND AFFILIATES.

                  Borrower shall not, and shall not permit any of its
Subsidiaries to, directly or indirectly, enter into or permit to exist any
transaction (including the purchase, sale, lease or exchange of any property or
the rendering of any service) with any holder of 5% or more of any class of
equity Securities of Borrower or with any Affiliate of Borrower or of any such
holder, on terms that are less favorable to Borrower or such Subsidiary, as the
case may be, than those that might be obtained at the time from Persons who are
not such a holder or Affiliate; provided, that the foregoing restriction shall
not apply to any transaction between Borrower and any of its wholly-owned
Subsidiaries or between any of its wholly-owned Subsidiaries or the transactions
contemplated by the Seller Notes; provided, further, that no Management Fees
shall be permitted.

                  6.12     DISPOSAL OF SUBSIDIARY STOCK.

                  Neither Borrower nor any Subsidiary shall, or suffer of permit
any other Person to directly or indirectly sell, assign, pledge or otherwise
encumber or dispose of any shares of capital stock or other equity Securities of
any of its Subsidiaries, except to qualify directors if required by applicable
law, and to Lender.

                  6.13     CONDUCT OF BUSINESS.

                  From and after the Initial Effective Date, Borrower shall not
and shall not permit any of its Subsidiaries to, engage in any business other
than to own, actively manage or operate any business other than the business of
providing communication services on an outsourced basis and related activities.

                                       78
<PAGE>   85

                  6.14     AMENDMENTS OF WAIVERS OF RELATED DOCUMENTS AND
CHARTER DOCUMENTS.

                           (a) NO AMENDMENT OR WAIVER OF RELATED DOCUMENTS. No
         Loan Party will agree to any amendment to, or waive any of its rights
         under, any of the Related Documents (other than nonmaterial amendments
         or waivers which individually, or together with all other amendments,
         waivers or changes made, would not be adverse to any Loan Party or
         Lender), without obtaining the written consent of Lender to such
         amendment or waiver.

                           (b) CHARTER DOCUMENTS. Borrower will not, and shall
         not permit any of its Subsidiaries to agree to any material amendment
         to, or waive any of its material rights under, its certificates or
         articles of incorporation, bylaws or other documents relating to its
         capital stock without, in each case, obtaining the written consent of
         Lender to such amendment or waiver; provided, that, so long as no Event
         of Default is continuing, Borrower may make those amendments to its
         certificate of incorporation that are necessary in order to effectuate
         a Permitted Equity Financing or an Initial Public Offering.

                           (c) AMENDMENTS OF DOCUMENTS RELATING TO SUBORDINATED
         INDEBTEDNESS. Borrower shall not, and shall not permit any of its
         Subsidiaries to, amend or otherwise change the terms of any
         subordinated Indebtedness, or make any payment consistent with an
         amendment thereof or change thereto, if the effect of such amendment or
         change is to change (to earlier dates) any dates upon which payments of
         principal or interest are due thereon, change any event of default or
         condition to an event of default with respect thereto (other than to
         eliminate any such event of default or increase any grace period
         related thereto), change the redemption, prepayment or defeasance
         provisions thereof, change the subordination provisions of such
         Subordinated Indebtedness (or of any guaranty thereof), or change any
         collateral therefor (other than to release such collateral), or if the
         effect of such, amendment or change, together with all other amendments
         or changes made, is to increase materially the obligations of the
         obligor thereunder or to confer any additional rights on the holders of
         such Subordinated Indebtedness (or a trustee or other representative on
         their behalf) which would be adverse to Borrower, or Lender.

                  6.15     FISCAL YEAR.

                  Borrower shall not change its Fiscal Year-end from the
Saturday immediately preceding December 31 each calendar year without the
consent of Lender.

                                   SECTION 7.
                                EVENTS OF DEFAULT

                  If any of the following conditions or events ("EVENTS OF
DEFAULT") shall occur:

                                       79
<PAGE>   86

                  7.1      FAILURE TO MAKE PAYMENTS WHEN DUE.

                  Failure by Borrower to pay any installment of principal of the
Loan when due, whether at stated maturity, by acceleration, by notice of
voluntary prepayment, by mandatory prepayment or otherwise; or failure by
Borrower to pay any interest on the Loan or any fee or any other amount due
under this Agreement within two Business Days after the date due; or

                  7.2      DEFAULT IN OTHER AGREEMENTS.

                  Either (i) the failure of Borrower or any of Borrower's
Subsidiaries to pay when due (including any applicable grace period) any
principal of or interest on any Indebtedness (other than Indebtedness referred
to in subsection 7.1) or Contingent Obligations in an individual principal
amount of $150,000 or more or with an aggregate principal amount of $300,000 or
more, in each case beyond the end of any grace period provided therefor; or (ii)
the breach or default by Borrower or any of Borrower's Subsidiaries with respect
to any material term of one or more items of Indebtedness or Contingent
Obligations in the individual or aggregate principal amounts of $300,000 or more
or (iii) the breach or default by Borrower or any of Borrower's Subsidiaries
with respect to any loan agreement, mortgage, indenture or other agreement
relating to such items of Indebtedness or Contingent Obligations, if the effect
of such breach or default is to cause, or to permit the holder or holders of
that Indebtedness or Contingent Obligations (or a trustee on behalf of such
holder or holders) to cause, that Indebtedness or Contingent Obligations to
become or be declared due and payable prior to its stated maturity or the stated
maturity of any underlying obligation, as the case may be (upon the giving or
receiving of notice, lapse of time, both, or otherwise); or

                  7.3      BREACH OF CERTAIN COVENANTS.

                  Failure of Borrower to perform or comply with any term or
condition contained in subsections 2.6 or 5.2 or Section 6 of this Agreement; or

                  7.4      BREACH OF WARRANTY.

                  Any representation, warranty, certification or other statement
made by Borrower or any of Borrower's Subsidiaries in any Loan Document or in
any statement or certificate at any time given by Borrower or any of Borrower's
Subsidiaries in writing pursuant hereto or thereto or in connection herewith or
therewith shall be false in any material respect on the date as of which made;
or

                  7.5      OTHER DEFAULTS UNDER LOAN DOCUMENTS.

                  Borrower or any of Borrower's Subsidiaries shall default in
the performance of or compliance with any term contained in this Agreement or
any of the other Loan Documents, and such default shall not have been remedied
or waived within 30 days after the earlier of (i) an officer of Borrower
becoming aware of such default or (ii) receipt by Borrower any of notice from
Lender of such default; or

                                       80

<PAGE>   87

                  7.6      INVOLUNTARY BANKRUPTCY; APPOINTMENT OF RECEIVER, ETC.

                           (i) A court having jurisdiction in the premises shall
                           enter a decree or order for relief in respect of
                           Borrower or any of Borrower's Subsidiaries in an
                           involuntary case under the Bankruptcy Code or under
                           any other applicable bankruptcy, insolvency or
                           similar law now or hereafter in effect, which decree
                           or order is not stayed; or any other similar relief
                           shall be granted under any applicable federal or
                           state law; or (ii) an involuntary case shall be
                           commenced against Borrower or any of Borrower's
                           Subsidiaries under the Bankruptcy Code or under any
                           other applicable bankruptcy, insolvency or similar
                           law now or hereafter in effect, or a decree or order
                           of a court having jurisdiction in the premises for
                           the appointment of a receiver, liquidator,
                           sequestrator, trustee, custodian or other officer
                           having similar powers over trustee, Borrower or any
                           of Borrower's Subsidiaries, or over all or a
                           substantial part of its property, shall have been
                           entered; or there shall have occurred the involuntary
                           appointment of an interim receiver, trustee or other
                           custodian of trustee, Borrower or any of Borrower's
                           Subsidiaries for all or a substantial part of its
                           property; or a warrant of attachment, execution or
                           similar process shall have been issued against any
                           substantial part of the property of Borrower or any
                           of Borrower's Subsidiaries, and any such event
                           described in this clause (ii) shall continue for 60
                           days unless dismissed, bonded or discharged; or

                  7.7      VOLUNTARY BANKRUPTCY; APPOINTMENT OF RECEIVER, ETC.

                           (i) Borrower or any of Borrower's Subsidiaries shall
                           have an order for relief entered with respect to it
                           or commence a voluntary case under the Bankruptcy
                           Code or under any other applicable bankruptcy,
                           insolvency or similar law now or hereafter in effect,
                           or shall consent to the entry of an order for relief
                           in an involuntary case, or to the conversion of an
                           involuntary case to a voluntary case, under any such
                           law, or shall consent to the appointment of or taking
                           possession by a receiver, trustee or other custodian
                           for all or a substantial part of its property; or
                           Borrower or any of Borrower's Subsidiaries shall make
                           any assignment for the benefit of creditors; or (ii)
                           Borrower or any of Borrower's Subsidiaries shall be
                           unable, or shall fail generally, or shall admit in
                           writing its inability, to pay its debts as such debts
                           become due; or the Board of Directors of Borrower or
                           any of its Subsidiaries (or any committee thereof)
                           shall adopt any resolution or otherwise authorize any
                           action to approve any of the actions referred to in
                           clause (i) above or this clause (ii); or

                                       81
<PAGE>   88

                  7.8      JUDGMENTS AND ATTACHMENTS.

                  Any money judgment, writ or warrant of attachment or similar
process involving (i) in any individual case an amount in excess of $150,000 or
(ii) in the aggregate at any time an amount in excess of $300,000 (in either
case not adequately covered by insurance as to which a solvent and unaffiliated
insurance provider of Borrower or any of its Subsidiaries has acknowledged
coverage) shall be entered or filed against Borrower or any of Borrower's
Subsidiaries or any of their respective assets and shall remain undischarged,
unvacated, unbonded or unstayed for a period of 60 days (or in any event later
than five days prior to the date of any proposed sale thereunder); or

                  7.9      DISSOLUTION.

                  Any order, judgment or decree shall be entered against
Borrower or any of its Subsidiaries (other than any Inactive Subsidiary)
decreeing the dissolution or split up of Borrower or any of its Subsidiaries
(other than any Inactive Subsidiary) and such order shall remain undischarged or
unstayed for a period in excess of 30 days; or

                  7.10     EMPLOYEE BENEFIT PLANS.

                  There shall occur one or more ERISA Events which individually
or in the aggregate results in or might reasonably be expected to result in
liability of Borrower, any of its Subsidiaries or any of their respective ERISA
Affiliates in excess of $150,000 during the term of this Agreement; or there
shall exist an amount of benefit liabilities (as defined in Section 4001(a)(16)
of ERISA and determined using the actuarial assumptions set forth in the most
recent actuarial reports pertaining to such Pension Plan), individually or in
the aggregate for all Pension Plans (excluding for purposes of such computation
any Pension Plans with respect to which assets exceed benefit liabilities),
which exceeds the fair market value of the assets of such Pension Plans by more
than $150,000; or

                  7.11     CHANGE IN CONTROL.

                  There shall occur any Change of Control; or

                  7.12     FAILURE OF SECURITY OR GUARANTY.

                  The Subsidiary Guaranty or any Security Document shall, at any
time, cease to be in full force and effect (other than by reason of a release of
Collateral in accordance with the terms thereof or the satisfaction in full of
all Obligations) or shall be declared null and void, or the validity or
enforceability thereof shall be contested by any party thereto, or Lender shall
not have or cease to have a valid and perfected security interest in the
Collateral (subject to Permitted Liens) to the extent contemplated by the
Security Documents;

                  THEN, (i) upon the occurrence of any Event of Default
described in subsection 7.6 or 7.7, each of (a) the unpaid principal amount of
and accrued interest on the Loans, and (b) all other Obligations shall
automatically become immediately due and payable, without presentment, demand,
protest or other requirements of any kind, all of

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<PAGE>   89

which are hereby expressly waived by Borrower and (ii) upon the occurrence and
during the continuation of any other Event of Default, Lender shall by written
notice to Borrower, declare all or any portion of the amounts described in
clauses (a) through (b) above to be, and the same shall forthwith become,
immediately due and payable.

                                   SECTION 8.
                                  MISCELLANEOUS

                  8.1      ASSIGNMENTS AND PARTICIPATIONS IN LOANS.

                           (a) GENERAL. Lender shall have the right at any time
         to (i) sell, assign or transfer to any Person, or (ii) sell
         participations to any Person in, all or any part of the Loans made by
         it or any other interest herein or in any other Obligations owed to it;
         provided, that no such sale, Assignment, transfer or participation
         shall, without the consent of Borrower, require Borrower to file a
         registration statement with the Securities and Exchange Commission or
         apply to qualify such sale, assignment, transfer or participation under
         the securities laws of any state; provided, that, at no time shall
         there be more than three Lenders at any one time; and provided, further
         that upon any partial sale or assignment, Lenders shall designate a
         single Lender to serve as administrative agent to whom all notices
         shall be given on behalf of all Lenders; and provided, further that
         Borrower shall not be responsible to pay the costs relating to any sale
         or assignment except that, to the extent that Lender requires such
         amendments, Borrower shall pay the cost of documentation for amendments
         in order to place a single Lender to serve as agent on behalf of
         Lenders within the Loan Documents.

                           (b) ASSIGNMENTS. Terms of Assignments. The parties to
         any assignment shall execute and deliver to Lender, for its acceptance,
         an Assignment Agreement, together with a processing fee of $3,500 and
         such forms, certificates or other evidence, if any, described in
         subsection 2.8(c) with respect to United States federal income tax
         withholding matters and as may be required by Lender and Borrower. Upon
         such execution, delivery and acceptance, from and after the effective
         date specified in such Assignment Agreement, (y) the assignee
         thereunder shall be a party hereto and, to the extent that rights and
         obligations hereunder have been assigned to it pursuant to such
         Assignment Agreement, shall have the rights and obligations of a Lender
         hereunder and (z) the assigning Lender thereunder shall, to the extent
         that rights and obligations hereunder have been assigned by it pursuant
         to such Assignment Agreement, relinquish its rights (other than any
         rights which survive the termination of this Agreement under subsection
         8.8(b) and be released from its obligations under this Agreement (and,
         in the case of an Assignment Agreement covering all or the remaining
         portion of an assigning Lender's rights and obligations under this
         Agreement, Lender shall cease to be a party hereto). The assigning
         Lender shall, upon the effectiveness of such assignment or as promptly
         thereafter as practicable, surrender its applicable Note to Lender for
         cancellation, and thereupon new Notes shall be issued to the assignee
         and to the assigning Lender, substantially in the form of Exhibit III
         annexed hereto, as the case may be, with appropriate insertions, to
         reflect the new

                                       83

<PAGE>   90

         outstanding Loans of the assignee and the assigning Lender. To the
         extent that an assignment of all or any portion of a Lender's interests
         and rights under this Agreement and the other Loan Documents to any
         Person pursuant to this subsection 8.1(b) would, due to circumstances
         existing at the time of such assignment, result in increased costs
         under subsection 2.8 from those being charged by such assigning Lender
         prior to such assignment, then Borrower shall not be obligated to pay
         such increased costs (although Borrower shall be obligated to pay any
         other increased costs of the type described above resulting from
         changes after the date of the assignment).

                           (c) PARTICIPATIONS. The holder of any participation,
         other than an Affiliate of Lender granting such participation, shall
         not be entitled to require Lender to take or omit to take any action
         hereunder except action directly affecting (i) the extension of the
         regularly scheduled maturity of any portion of the principal amount of
         or interest on the Loans allocated to such participation or (ii) a
         reduction of the principal amount of or the rate of interest payable on
         the Loans allocated to such participation, and all amounts payable by
         Borrower hereunder (including amounts payable to Lender pursuant to
         subsections 2.7(d) and 2.8) shall be determined as if Lender had not
         sold such participation. Borrower and Lender hereby acknowledge and
         agree that, solely for purposes of subsection 8.4, (a) any
         participation will give rise to a direct obligation of Borrower to the
         participant and (b) the participant shall be considered to be a
         "Lender".

                           (d) INFORMATION. Lender may furnish any information
         concerning Borrower and Borrower's Subsidiaries in the possession of
         Lender from time to time to assignees and participants (including
         prospective assignees and participants), subject to subsection 8.17.

                  8.2      EXPENSES.

                  Whether or not the transactions contemplated hereby shall be
consummated, Borrower agrees to pay promptly (i) all the actual and reasonable
costs and expenses of preparation of the Loan Documents and any consents,
amendments, waivers or other modifications thereto; (ii) all reasonable costs of
furnishing all opinions by counsel for Borrower (including any opinions
requested by Lender as to any legal matters arising hereunder) and of Borrower's
performance of and compliance with all agreements and conditions on its part to
be performed or complied with under this Agreement and the other Loan Documents
including with respect to confirming compliance with environmental, insurance
and solvency requirements; (iii) the reasonable fees, expenses and disbursements
of counsel to Lender (including allocated costs of internal counsel) in
connection with the negotiation, preparation, execution and administration of
the Loan Documents and any consents, amendments, waivers or other modifications
thereto and any other documents or matters requested by Borrower; (iv) all the
actual costs and reasonable expenses of creating and perfecting Liens in favor
of Lender pursuant to any Security Document, including filing and recording
fees, expenses and taxes, stamp or documentary taxes, search fees, title
insurance premiums, and

                                       84
<PAGE>   91

reasonable fees, expenses and disbursements of counsel to Lender and of counsel
providing any opinions that Lender may request in respect of the Security
Documents or the Liens created pursuant thereto; (v) a field examination fee of
$600 per auditor per diem plus all actual costs and reasonable expenses in
connection with the conduct of Lender's initial and ongoing field examinations;
(vi) all the actual costs and reasonable expenses (including the reasonable
fees, expenses and disbursements of any auditors, accountants or appraisers and
any environmental or other consultants, advisors and agents employed or retained
by Lender or its counsel) of obtaining and reviewing any appraisals
environmental audits or reports hereunder; (vii) the custody or preservation of
any of the Collateral; and (viii) after the occurrence of an Event of Default,
all costs and expenses, including reasonable attorneys' fees (including
allocated costs of internal counsel) and costs of settlement, incurred by Lender
in enforcing any Obligations of or in collecting any payments due from any Loan
Party hereunder or under the other Loan Documents by reason of such Event of
Default (including in connection with the sale of, collection from, or other
realization upon any of the Collateral or the enforcement of the Subsidiary
Guaranty) or in connection with any refinancing or restructuring of the credit
arrangements provided under this Agreement in the nature of a "workout" or
pursuant to any insolvency or bankruptcy proceedings.

                  8.3      INDEMNITY.

                  In addition to the payment of expenses pursuant to subsection
8.2, whether or not the transactions contemplated hereby shall be consummated,
Borrower agrees to defend (subject to Indemnitees' selection of counsel),
indemnify, pay and hold harmless Lender and the officers, directors, employees,
agents and affiliates of Lender (collectively called the "INDEMNITEES"), from
and against any and all Indemnified Liabilities (as hereinafter defined);
provided, that Borrower shall not have any obligation to any Indemnitee
hereunder with respect to any Indemnified Liabilities to the extent such
Indemnified Liabilities arise solely from the gross negligence or willful
misconduct of that Indemnitee as determined by a final judgment of a court of
competent jurisdiction.

                  As used herein, "INDEMNIFIED LIABILITIES" means, collectively,
any and all liabilities, obligations, losses, damages (including natural
resource damages), penalties, actions, judgments, suits, claims (including
Environmental Claims), costs (including the costs of any investigation, study,
sampling, testing, abatement, cleanup, removal, remediation or other response
action necessary to remove, remediate, clean up or abate any Hazardous Materials
Activity), costs, expenses and disbursements of any kind or nature whatsoever
(including the reasonable fees and disbursements of counsel for Indemnitees in
connection with any investigative, administrative or judicial proceeding
commenced or threatened by any Person, whether or not any such Indemnitee shall
be designated as a party or a potential party thereto, and any fees or expenses
incurred by Indemnitees in enforcing this indemnity), whether direct (other than
indirect or consequential damages), and whether based on any federal, state or
foreign laws, statutes, rules or regulations (including securities and
commercial laws, statutes, rules or regulations and Environmental Laws), on
common law or equitable cause or on contract or otherwise, that may be imposed
on, incurred by, or asserted against any such Indemnitee, in any manner relating
to or arising out of (i) this Agreement or the other

                                       85
<PAGE>   92

Loan Documents or the transactions contemplated hereby or thereby (including
Lender's agreement to make the Loan hereunder or the use or intended use of the
proceeds thereof, or any enforcement of any of the Loan Documents (including any
sale of, collection from, or other realization upon any of the Collateral or the
enforcement of the Subsidiary Guaranty), (ii) the statements contained in the
commitment letter delivered by Lender to Borrower with respect thereto, or (iii)
any Environmental Claim or any Hazardous Materials Activity relating to or
arising from, directly or indirectly, any past or present activity, operation,
land ownership, or practice of Borrower or any of its Subsidiaries.

         To the extent that the undertakings to defend, indemnify, pay and hold
harmless set forth in this subsection 8.3 may be unenforceable in whole or in
part because they are violative of any law or public policy, Borrower shall
contribute the maximum portion that it is permitted to pay and satisfy under
applicable law to the payment and satisfaction of all Indemnified Liabilities
incurred by Indemnitees or any of them.

                  8.4      SET-OFF; SECURITY INTEREST IN DEPOSIT ACCOUNTS.

                  In addition to any rights now or hereafter granted under
applicable law and not by way of limitation of any such rights, upon the
occurrence of any Event of Default, Lender is hereby authorized by Borrower at
any time or from time to time, without notice to Borrower or to any other
Person, any such notice being hereby expressly waived, to set off and to
appropriate and to apply any and all deposits (general or special, including
Indebtedness evidenced by certificates of deposit, whether matured or
unmeasured, but not including trust accounts) and any other Indebtedness at any
time held or owing by Lender to or for the credit or the account of Borrower
against and on account of the obligations and liabilities of Borrower to Lender
under this Agreement and the other Loan Documents, including all claims of any
nature or description arising out of or connected with this Agreement or any
other Loan Document, irrespective of whether or not (i) Lender shall have made
any demand hereunder or (ii) the principal of or the interest on the Loan or any
amounts in respect of any other amounts due hereunder shall have become due and
payable pursuant to Section 7 and although said obligations and liabilities, or
any of them, may be contingent or unmatured. Borrower hereby further grants to
Lender a security interest in all deposits and accounts maintained with Lender
as security for the Obligations.

                  8.5      AMENDMENTS AND WAIVERS.

                  No amendment, modification, termination or waiver of any
provision of this Agreement or of the Note, or consent to any departure by
Borrower therefrom, shall in any event be effective without the written
concurrence of Lender. Any waiver or consent shall be effective only in the
specific instance and for the specific purpose for which it was given. No notice
to or demand on Borrower in any case shall entitle Borrower to any other or
further notice or demand in similar or other circumstances. Any amendment,
modification, termination, waiver or consent effected in accordance with this
subsection 8.5 shall be binding upon Lender and, if signed by any Borrower, on
Borrower.

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                  8.6      INDEPENDENCE OF COVENANTS.

                  All covenants hereunder shall be given independent effect so
that if a particular action or condition is not permitted by any of such
covenants, the fact that it would be permitted by an exception to, or would
otherwise be within the limitations of, another covenant shall not avoid the
occurrence of an Event of Default or Default if such action is taken or
condition exists.

                  8.7      NOTICES.

                  Unless otherwise specifically provided herein, any notice or
other communication herein required or permitted to be given shall be in writing
and may be personally served, telexed or sent by telefacsimile or United States
mail or courier service and shall be deemed to have been given when received.
For the purposes hereof, the address of each party hereto shall be as set forth
under such party's name on the signature pages hereof or such other address as
shall be designated by such Person in a written notice delivered to the other
parties hereto.

                  8.8      SURVIVAL OF REPRESENTATIONS, WARRANTIES AND
AGREEMENTS.

                           (a) All representations, warranties and agreements
         made herein shall survive the execution and delivery of this Agreement
         and the making of the Loan hereunder.

                           (b) Notwithstanding anything in this Agreement or
         implied by law to the contrary, the agreements of Borrower set forth in
         subsections 2.7(d), 2.8, 8.2, 8.3 and 8.4 shall survive the payment of
         the Loan and the termination of this Agreement.

                  8.9      FAILURE OR INDULGENCE NOT WAIVER; REMEDIES
CUMULATIVE.

                  No failure or delay on the part of Lender in the exercise of
any power, right or privilege hereunder or under any other Loan Document shall
impair such power, right or privilege or be construed to be a waiver of any
default or acquiescence therein, nor shall any single or partial exercise of any
such power, right or privilege preclude other or further exercise thereof or of
any other power, right or privilege. All rights and remedies existing under this
Agreement and the other Loan Documents are cumulative to, and not exclusive of,
any rights or remedies otherwise available.

                  8.10     MARSHALLING; PAYMENTS SET ASIDE.

                  Lender shall not be under any obligation to marshal any assets
in favor of Borrower or any other party or against or in payment of any or all
of the Obligations. To the extent that Borrower make a payment or payments to
Lender or Lender enforces any security interests or exercise their rights of
setoff, and such payment or payments or the proceeds of such enforcement or
setoff or any part thereof are subsequently invalidated, declared to be
fraudulent or preferential, set aside and/or required to be repaid to a trustee,
receiver or any other party under any bankruptcy law, any other state or federal

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law, common law or any equitable cause, then, to the extent of such recovery,
the obligation or part thereof originally intended to be satisfied, and all
Liens, rights and remedies therefor or related thereto, shall be revived and
continued in full force and effect as if such payment or payments had not been
made or such enforcement or setoff had not occurred.

                  8.11     SEVERABILITY.

                  In case any provision in or obligation under this Agreement or
the Note shall be invalid, illegal or unenforceable in any jurisdiction, the
validity, legality and enforceability of the remaining provisions or
obligations, or of such provision or obligation in any other jurisdiction, shall
not in any way be affected or impaired thereby.

                  8.12     HEADINGS.

                  Section and subsection headings in this Agreement are included
herein for convenience of reference only and shall not constitute a part of this
Agreement for any other purpose or be given any substantive effect.

                  8.13     APPLICABLE LAW.

                  THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
HEREUNDER SHALL, IN ACCORDANCE WITH SECTION 5-1401 OF THE GENERAL OBLIGATIONS
LAW OF THE STATE OF NEW YORK, BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK,
WITHOUT REGARD TO ANY CONFLICTS OF LAWS PRINCIPLES THEREOF THAT WOULD CALL FOR
THE APPLICATION OF THE LAWS OF ANY OTHER JURISDICTION; PROVIDED, THAT THE
PROVISIONS RELATING TO THE PERFECTION AND PRIORITY OF THE COLLATERAL SHALL BE
GOVERNED BY THE LAWS OF THE STATE OF THE LOCATION OF THE APPLICABLE COLLATERAL
AND THE UNIFORM COMMERCIAL CODE IN EFFECT IN SUCH STATE.

                  8.14     SUCCESSORS AND ASSIGNS.

                  This Agreement shall be binding upon the parties hereto and
their respective successors and assigns and shall inure to the benefit of the
parties hereto and the successors and assigns of lender. Neither Borrower'
rights or obligations hereunder nor any interest therein may be assigned or
delegated by Borrower without the prior written consent of all Lender.

                  8.15     CONSENT TO JURISDICTION AND SERVICE OF PROCESS.

                  ALL JUDICIAL PROCEEDINGS BROUGHT AGAINST ANY LOAN PARTY
ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR ANY
OBLIGATIONS THEREUNDER, MAY BE BROUGHT IN ANY STATE OR FEDERAL COURT OF
COMPETENT JURISDICTION IN THE STATE, COUNTY AND CITY OF NEW YORK. BY

                                       88
<PAGE>   95

EXECUTING AND DELIVERING THIS AGREEMENT, BORROWER, FOR ITSELF AND IN CONNECTION
WITH ITS PROPERTIES, IRREVOCABLY

         1)       ACCEPTS GENERALLY AND UNCONDITIONALLY THE
                  NONEXCLUSIVE JURISDICTION AND VENUE OF SUCH COURTS;

         2)       WAIVES ANY DEFENSE OF FORUM NON CONVENIENS;

         3)       AGREES THAT SERVICE OF ALL PROCESS IN ANY SUCH
                  PROCEEDING IN ANY SUCH COURT MAY BE MADE BY REGISTERED
                  OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO
                  BORROWER AT ITS ADDRESS PROVIDED IN ACCORDANCE WITH
                  SUBSECTION 8.7;

         4)       AGREES THAT SERVICE AS PROVIDED IN CLAUSE (3) ABOVE IS
                  SUFFICIENT TO CONFER PERSONAL JURISDICTION OVER
                  BORROWER IN ANY SUCH PROCEEDING IN ANY SUCH COURT, AND
                  OTHERWISE CONSTITUTES EFFECTIVE AND BINDING SERVICE IN
                  EVERY RESPECT;

         5)       AGREES THAT LENDER RETAINS THE RIGHT TO SERVE PROCESS IN
                  ANY OTHER MANNER PERMITTED BY LAW OR TO BRING
                  PROCEEDINGS AGAINST BORROWER IN THE COURTS OF ANY
                  OTHER JURISDICTION; AND

         6)       AGREES THAT THE PROVISIONS OF THIS SUBSECTION 8.15 RELATING TO
                  JURISDICTION AND VENUE SHALL BE BINDING AND ENFORCEABLE TO THE
                  FULLEST EXTENT PERMISSIBLE UNDER NEW YORK GENERAL OBLIGATIONS
                  LAW SECTION 5-1402 OR OTHERWISE.

                  8.16     WAIVER OF JURY TRIAL.

                  EACH OF THE PARTIES TO THIS AGREEMENT HEREBY AGREES TO WAIVE
ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON
OR ARISING OUT OF THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS OR ANY
DEALINGS BETWEEN THEM RELATING TO THE SUBJECT MATTER OF THIS LOAN TRANSACTION OR
THE LENDER/BORROWER RELATIONSHIP THAT IS BEING ESTABLISHED. The scope of this
waiver is intended to be all-encompassing of any and all disputes that may be
filed in any court and that relate to the subject matter of this transaction,
including contract claims, tort claims, breach of duty claims and all other
common law and statutory claims. Each party hereto acknowledges that this waiver
is a material inducement to enter into a business relationship, that each has
already relied on this waiver in entering into this Agreement, and that each
will continue to rely on this waiver in their related future dealings. Each
party hereto further warrants and represents that it has reviewed this waiver
with its legal counsel and that it

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knowingly and voluntarily waives its jury trial rights following consultation
with legal counsel. THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE
MODIFIED EITHER ORALLY OR IN WRITING (OTHER THAN BY A MUTUAL WRITTEN WAIVER
SPECIFICALLY REFERRING TO THIS SUBSECTION 8.16 AND EXECUTED BY EACH OF THE
PARTIES HERETO), AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS,
RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT OR ANY OF THE OTHER
LOAN DOCUMENTS OR TO ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO THE LOANS
MADE HEREUNDER. In the event of litigation, this Agreement may be filed as a
written consent to a trial by the court.

                  8.17     CONFIDENTIALITY.

                  Lender shall hold all non-public information obtained pursuant
to the requirements of this Agreement which has been identified as confidential
by Borrower in accordance with Lender's customary procedures for handling
confidential information of this nature and in accordance with safe and sound
banking practices, it being understood and agreed by Borrower that in any event
Lender may make disclosures to Affiliates of Lender or disclosures reasonably
required by any bona fide assignee, transferee or participant in connection with
the contemplated assignment or transfer by Lender of the Loan or any
participations therein or disclosures required or requested by any governmental
agency or representative thereof or pursuant to legal process; provided, that,
unless specifically prohibited by applicable law or court order, Lender shall
notify Borrower of any request by any governmental agency or representative
thereof (other than any such request in connection with any examination of the
financial condition of Lender by such governmental agency) for disclosure of any
such non-public information prior to disclosure of such information; and
provided, further, that in no event shall Lender be obligated or required to
return any materials furnished by Borrower or any of Borrower's Subsidiaries.

                  8.18     COUNTERPARTS; EFFECTIVENESS.

                  This Agreement and any amendments, waivers, consents, or
supplements may be executed in any number of counterparts and by different
parties hereto in separate counterparts, each of which when so executed and
delivered shall be deemed an original, but all such counterparts, together shall
constitute but one and the same instrument. This Agreement shall become
effective upon the execution of a counterpart hereof by each of Borrower and
Lender.

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                  IN WITNESS WHEREOF, the parties hereto have caused this
AMENDED AND RESTATED CREDIT AGREEMENT to be duly executed and delivered by their
respective officers thereunto duly authorized as of the date first written
above.

                                    BORROWER:

                                    VIASOURCE COMMUNICATIONS, INC.

                                    By: /s/ Craig A. Russey
                                        --------------------------------------
                                    Name:
                                    Title:

                                    Notice Address:

                                    c/o Communication Resources Incorporated
                                    1001 W. Cypress Creek Road, Suite 118
                                    Ft. Lauderdale, FL   33309
                                    Attn: Craig Russey

                                    with a copy to:

                                    Crest Communications Partners, L.P.
                                    320 Park Avenue, 17th Floor
                                    New York, NY  10022
                                    Attn: V. Michael Fitzgerald
                                    Telecopy: (212) 317-2710

                                    Crest Communications Partners, L.P.
                                    320 Park Avenue, 17th Floor
                                    New York, NY  10022
                                    Attn: Matthew O'Connell
                                    Telecopy: (212) 317-2710

                                    Dewey Ballantine LLP
                                    1301 Avenue of the Americas
                                    New York, NY  10019
                                    Attn: Richard A. Stenberg
                                    Telecopy: (212) 259-6333

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<PAGE>   98

                                    LENDER:

                                    GENERAL ELECTRIC CAPITAL
                                    CORPORATION

                                    By: /s/ Thomas P. Waters
                                        --------------------------------------
                                    Name:  Thomas P. Waters
                                    Title: Senior Vice President

                                    Notice Address:
                                    2325 Lakeview Parkway, Suite 7000
                                    Alpharetta, Georgia 30004-1976
                                    Attention: Viasource Account Manager

                                       92

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