Document:

<PAGE>   1
                                                                    EXHIBIT 10.1

                              AMENDED AND RESTATED
                         SECURED CONVERTIBLE SENIOR NOTE
                               PURCHASE AGREEMENT

                                     BETWEEN

                          ALTIVA FINANCIAL CORPORATION

                                       AND

                               VALUE PARTNERS, LTD

                       DATED FOR REFERENCES PURPOSES ONLY
                             AS OF FEBRUARY 29, 2000

<PAGE>   2

                                TABLE OF CONTENTS

<TABLE>
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Article I.        Definitions.....................................................................................1
         Section 1.1       Definitions............................................................................1

Article II.       Purchase and Sale of Notes......................................................................7
         Section 2.1       Purchase and Sale of Notes.............................................................7
         Section 2.2       Closing................................................................................7

Article III.      Representations and Warranties..................................................................7
         Section 3.1       Representations and Warranties of the Company..........................................7
         Section 3.2       Representations and Warranties of the Purchaser.......................................18

Article IV.       Conditions Precedent to Closing................................................................20
         Section 4.1       Conditions to Obligations of the Parties..............................................20
         Section 4.2       Conditions to Obligations of the Purchaser............................................20
         Section 4.3       Conditions to Obligations of the Company..............................................22

Article V.        Covenants......................................................................................23
         Section 5.1       Shareholder Meeting...................................................................23
         Section 5.2       Applications..........................................................................24
         Section 5.3       Investigation and Confidentiality.....................................................25
         Section 5.4       Press Releases........................................................................26
         Section 5.5       No Solicitation.......................................................................26
         Section 5.6       Rule 144 and Rule 144A Reporting......................................................26
         Section 5.7       Stay, Extension and Usury Laws........................................................27

Article VI.       Miscellaneous..................................................................................27
         Section 6.1       Survival of Provisions................................................................27
         Section 6.2       Termination...........................................................................27
         Section 6.3       Waiver; Amendments....................................................................28
         Section 6.4       Communications........................................................................28
         Section 6.5       Costs, Expenses and Taxes.............................................................28
         Section 6.6       Execution in Counterparts; FAX Execution..............................................29
         Section 6.7       Binding Effect; Assignment............................................................29
         Section 6.8       Governing Law.........................................................................30
         Section 6.9       Usury.................................................................................30
</TABLE>

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<TABLE>
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<S>      <C>                                                                                                     <C>
         Section 6.10      Severability of Provisions............................................................30
         Section 6.11      Construction..........................................................................30
         Section 6.12      Integration...........................................................................31
         Section 6.13      Participation Interests...............................................................31
         Section 6.14      No Third Party Beneficiaries..........................................................32
         Section 6.15      Representation by Counsel.............................................................32
         Section 6.16      Waiver of Claims......................................................................32
         Section 6.17      Texas Language........................................................................32
         Section 6.18      Power of Attorney.....................................................................32

Article VII       Indemnification................................................................................33
         Section 7.1       Indemnification.......................................................................33
         Section 7.2       Set Off...............................................................................33

         Exhibit A         Name and Address of the Purchaser
         Exhibit B         Form of Amended and Restated Note
         Exhibit C         Form of Amended and Restated Pledge and Security Agreement
         Exhibit D         Form of Amended and Restated Registration Rights Agreement
         Exhibit E         Form of Intercreditor and Collateral Sharing Agreement
         Exhibit F         Form of Indenture relating to the Exchange Notes
         Exhibit G         Matters to be covered by Opinion of Counsel to the Company
</TABLE>

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<PAGE>   4

                              AMENDED AND RESTATED
                         SECURED CONVERTIBLE SENIOR NOTE
                               PURCHASE AGREEMENT

         Amended and Restated Secured Convertible Senior Note Purchase
Agreement, dated for reference purposes only as of February 29, 2000 (the
"Agreement"), between Altiva Financial Corporation (the "Company"), a Delaware
corporation, and Value Partners, Ltd. (the "Purchaser"), a Texas Limited
partnership.

                                   WITNESSETH:

         WHEREAS, the Company and the Purchaser have entered into a Secured
Convertible Note Purchase Agreement, dated as of August 31, 1999, as amended by
Amendment No. 1 to the Secured Convertible Note Purchase Agreement, dated as of
December 13, 1999, Amendment No. 2 to the Secured Convertible Note Purchase
Agreement, dated as of December 30, 1999, Amendment No. 3 to the Secured
Convertible Note Purchase Agreement, dated as of February 2, 2000, and Amendment
No. 4 to the Secured Convertible Note Purchase Agreement, dated as of February
11, 2000 (collectively, the "Existing Agreement"), pursuant to which the
Purchaser acquired an aggregate of $7,000,000, $250,000, $1,750,000, $700,000
and $300,000 principal amount of 12% Secured Convertible Notes due 2006
(collectively the "Existing Notes"), respectively; and

         WHEREAS, the Company and the Purchaser desire to amend and restate the
Existing Agreement to increase the aggregate principal amount of 12% Secured
Convertible Notes due 2006 to be issued and sold by the Company to the Purchaser
from $10,000,000 to $14,000,000, to amend and restate such Notes and to
otherwise amend the agreements of the parties; and

         WHEREAS, the parties deem it in their best interest to set forth their
mutual agreements herein;

         NOW, THEREFORE, in consideration of any extension of credit and/or
other financial accommodation at any time made by the Purchaser to or for the
benefit of the Company, and of the promises set forth herein, the parties hereto
amend and restate the Existing Agreement in its entirety and agree as follows:

                                    ARTICLE I
                                   DEFINITIONS

         SECTION  1.1      DEFINITIONS. As used in this Agreement, and unless
the context requires a different meaning, the following terms have the meanings
indicated:

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         "Affiliate" means, with respect to any Person, any Person that,
directly or indirectly, controls, is controlled by or is under common control
with such Person. For the purposes of this definition, "control" (including,
with correlative meanings, the terms "controlled by" and "under common control
with") shall mean the possession, directly or indirectly, of the power to direct
or cause the direction of the management and policies of such Person, whether
through the ownership of voting securities, by contract or otherwise.

         "Agreement" means this Amended and Restated Secured Convertible Senior
Note Purchase Agreement, as amended, supplemented or modified from time to time.

         "Business Day" means any day except a Saturday, Sunday or other day on
which banking institutions in the city of Atlanta, Georgia are authorized by law
to close.

         "Capital Stock" of any Person means any and all shares or other equity
interest of such Person.

         "Closing" has the meaning set forth in Section 2.2.

         "Closing Date" has the meaning set forth in Section 2.2.

         "Code" means the Internal Revenue Code of 1986, as amended (or any
successor statute in effect from time to time), and the rules and regulations
promulgated thereunder.

         "Commission" means the Securities and Exchange Commission and any
successor thereto.

         "Common Stock" means the Common Stock, par value $.01 per share, of the
Company.

         "Company" means Altiva Financial Corporation, a Delaware corporation,
together with its successors.

         "Company Financial Statements" has the meaning set forth in Section
3.1(i)(i) hereof.

         "Environmental Claim" means any written notice from any governmental
authority or third party alleging potential liability (including without
limitation potential liability for investigating costs, cleanup costs,
governmental response costs, natural resource damages, property damages,
personal injuries or penalties) arising out of, based on, or resulting from the
presence, or release into the environment of any Materials of Environmental
Concern.

         "Environmental Laws" means any law, statute, rule or regulation of any
governmental, judicial, legislative, executive, administrative or regulatory
authority of the United States, or of any state, local or foreign government or
any subdivision thereof or of any governmental body or other regulatory or
administrative agency or commission, domestic or foreign (a "Law"), relating to
pollution or protection of the environment (including ambient air, surface
water, groundwater,

                                       2
<PAGE>   6

land surface or subsurface strata), including without limitation the
Comprehensive Environmental Response, Compensation and Liability Act of 1980, as
amended, the Resource Conservation and Recovery Act of 1976, as amended, and
other Laws relating to (i) emissions, discharges or releases of pollutants,
contaminants, chemicals, or industrial toxic or hazardous substances or wastes
(collectively known as "Polluting Substances") or (ii) the handling, storage,
disposal, reclamation, recycling or transportation of Polluting Substances.

         "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended (or any successor statute in effect from time to time).

         "Exchange" shall mean the exchange by the holders of the Subordinated
Notes of such Subordinated Notes for senior notes of the Company in the maximum
aggregate principal amount of $19,228,000, of which $6,428,000 shall be
mandatorily convertible into 6,428,000 shares of Common Stock which have
substantially the same terms as the Notes (except regarding convertibility into
shares of Common Stock) and which generally are secured on a pari passu basis by
the same collateral as the Notes pursuant to the Exchange Note Security
Agreements (as amended, supplemented or otherwise modified from time to time,
the "Exchange Notes"), as provided in the Exchange Agreement.

         "Exchange Act" means the Securities Exchange Act of 1934, as amended
and in effect from time to time (or any successor statute in effect from time to
time), and the rules and regulations of the Commission promulgated thereunder.

         "Exchange Agreement" means the Exchange Agreement between the Company
and the holders of not less than 92% of the aggregate principal amount of the
outstanding Subordinated Notes providing for the Exchange and related matters.

         "Exchange Note Indenture" means the Indenture entered into by the
Company and U.S. Trust Company of Texas, N.A., as trustee for the holders of the
Exchange Notes, as amended, supplemented or otherwise modified from time to
time.

         "Exchange Note Letter of Transmittal" means the Letter of Transmittal
between the Company and the holders of not less than 92% of the aggregate
principal amount of the outstanding Subordinated Notes providing for the
Exchange and related matters.

         "Exchange Note Registration Rights Agreement" means the Registration
Rights Agreement entered into by the Company and the holders of the Exchange
Notes, as amended, supplemented or otherwise modified from time to time.

         "Exchange Note Related Agreements" means the Exchange Notes, the
Exchange Note Indenture, the Exchange Note Security Agreements, the Escrow
Agreement, the Exchange Note Letter of Transmittal, the Exchange Note
Registration Rights Agreement and the Intercreditor Agreement.

         "Exchange Note Securities" means (i) the Exchange Notes and (ii) the
Common Stock issuable upon mandatory conversion of the Exchange Notes.

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<PAGE>   7

         "Exchange Note Security Agreements" means (i) the Pledge and Security
Agreement pursuant to which holders of Exchange Notes which constitute
"qualified institutional buyers" for purposes of Rule 144A under the Securities
Act ("QIBs") obtain a security interest in the collateral pledged by the Company
pursuant to the Security Agreement to secure the Notes and (ii) the Pledge and
Security Agreement pursuant to which Persons who or which do not constitute QIBs
obtain a first lien security interest in the capital stock of MCI.

         "Exchange Notes" has the meaning set forth in the definition of the
term "Exchange."

         "Existing Agreement " has the meaning set forth in the first WHEREAS
recital to this Agreement.

         "Existing Notes" has the meaning set forth in the first WHEREAS recital
to this Agreement.

         "GAAP" means generally accepted accounting principles set forth in the
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 have been approved by a significant segment of the accounting
profession, which are in effect on the date of this Agreement, consistently
applied.

         "Governmental Entity" means any federal or state court, administrative
agency or commission or other governmental authority or instrumentality.

         "HSR Act" means the Hart-Scott-Rodino Antitrust Improvements Act of
1976, as amended (or any successor statute in effect from time to time), and the
rules and regulations of the Federal Trade Commission promulgated thereunder.

         "Indebtedness Instrument" mean any note, mortgage, indenture, chattel
mortgage, deed of trust, loan agreement, hypothecation agreement, pledge
agreement, security agreement, financing statement or other document, instrument
or agreement evidencing or securing the payment of or otherwise relating to the
borrowing of monies. Indebtedness Instruments shall include, but not be limited
to, the Existing Notes, the Notes, the Exchange Notes and the Subordinated
Notes.

         "Lien" means, with respect to any asset, any mortgage, lien, pledge,
encumbrance, charge or security interest of any kind in respect of such asset.

         "Intercreditor Agreement" has the meaning set forth in Section 4.2(i).

         "Material Adverse Effect" means any effect that (i) is material and
adverse to the financial condition, results of operations, business or prospects
of the Company and its Subsidiaries taken as a whole or (ii) materially impairs
the ability of the Company to perform its

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obligations under this Agreement, any Related Agreement, the Exchange Agreement
or any Exchange Note Related Agreement.

         "Materials of Environmental Concern" means pollutants, contaminants,
wastes, toxic substances, petroleum and petroleum products and any other
materials regulated under Environmental Laws.

         "MCI" means The Money Centre, Inc., a North Carolina corporation,
together with its successors.

         "NASD" means National Association of Securities Dealers, Inc.

         "Notes" means $14,000,000 aggregate principal amount of Amended and
Restated 12% Secured Convertible Senior Notes due 2006 to be issued and sold by
the Company and purchased by the Purchaser pursuant to this Agreement,
substantially in the form of Exhibit B hereto, as amended, supplemented or
otherwise modified from time to time, which shall supersede in their entirety
the Existing Notes.

         "Participation Agreement" means the Amended and Restated Participation
Agreement between the Purchaser and T. Rowe Price, as amended, supplemented or
otherwise modified from time to time.

         "Person" means an individual, a corporation, a partnership, an
association, a trust or any other entity or organization, including a government
or a political subdivision or an agency or instrumentality thereof.

         "Preferred Stock" means the Preferred Stock, par value $.01 per share,
of the Company.

         "Previously Disclosed" means disclosed in a letter dated the date
hereof delivered from the Company to the Purchaser or from the Purchaser to the
Company, as applicable, specifically referring to the appropriate section of
this Agreement and describing in reasonable detail the matters contained
therein.

         "Purchase Price" has the meaning set forth in Section 2.1 hereof.

         "Purchaser" means Value Partners, Ltd and its successors and assigns.

         "Real Estate Owned" means the consolidated properties of the Company
acquired by foreclosure on a loan or deed-in-lieu thereof or otherwise included
in the Company's real estate owned for purposes of reporting asset quality of
the Company in its reports filed with the Commission under the Exchange Act.

         "Registration Rights Agreement" means the Amended and Restated
Registration Rights Agreement by and among the Company and the Purchaser,
substantially in the form of Exhibit D hereto, as amended, supplemented or
otherwise modified from time to time.

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<PAGE>   9

         "Related Agreements" means the Notes, the Security Agreement, the
Registration Rights Agreement and the Intercreditor Agreement.

         "Securities" means (i) the Notes and (ii) the Common Stock issuable
upon conversion of the Notes.

         "Securities Act" means the Securities Act of 1933, as amended (or any
successor statute thereto as in effect from time to time), and the rules and
regulations of the Commission promulgated thereunder.

         "Securities Documents" shall mean all reports, offering circulars,
proxy statements, registration statements and all similar documents filed, or
required to be filed, pursuant to the Securities Laws.

         "Securities Laws" shall mean the Securities Act; the Exchange Act; the
Investment Company Act of 1940, as amended; the Investment Advisers Act of 1940,
as amended; the Trust Indenture Act of 1939, as amended; and the rules and
regulations of the Commission promulgated thereunder.

         "Security Agreement" means the Amended and Restated Pledge and Security
Agreement by and among the Company and the Purchaser, in its own right and as
agent for the holders of the Notes, substantially in the form of Exhibit C
hereto, as amended, supplemented or otherwise modified from time to time.

         "State" means each of the states of the United States, the District of
Columbia and the Commonwealth of Puerto Rico.

         "Stock Equivalents" means, with respect to any Person, options,
warrants, calls, contracts or other rights entered into or issued by such Person
which confer upon the holder thereof the right (whether or not contingent) to
acquire any Capital Stock, voting securities or securities convertible into or
exchangeable for Capital Stock or voting securities of such Person.

         "Stock Option Plan" means the 1999 Stock Incentive Plan of the Company.

         "Subordinated Notes" means the 12 1/2% Subordinated Notes due 2001
issued by the Company.

         "Subsidiary" means with respect to any Person, (i) any corporation,
association, limited liability company or other business entity of which more
than 50% of the total voting power of shares of capital stock entitled (without
regard to the occurrence of any contingency) to vote in the election of
directors, managers or trustees thereof is at the time owned or controlled,
directly or indirectly, by such Person or one or more Subsidiaries of such
Person (or a combination thereof) and (ii) any partnership (a) the sole general
partner or managing general partner of which is such Person

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or a Subsidiary of such Person or (b) the only general partners of which are
such Person or one or more Subsidiaries of such Person (or any combination
thereof).

         "Taxes" means all taxes, charges, fees, levies or other governmental
assessments, including, without limitation, all net income, gross income, gross
receipts, sales, use, ad valorem, transfer, franchise, profits, license,
withholding, payroll, employment, excise, estimated, severance, stamp,
occupation, property or other taxes, customs, dues, fees, assessments or charges
of any kind whatsoever, together with any interest and any penalties, additions
to tax or additional amounts imposed by any taxing authority (domestic or
foreign).

         "Tax Returns" means all foreign, federal, State and local returns
relating to Taxes.

         "T. Rowe Price" means T. Rowe Price Recovery Fund, II, L.P. and its
successors and assigns.

                                   ARTICLE II
                           PURCHASE AND SALE OF NOTES

         SECTION 2.1 PURCHASE AND SALE OF NOTES. Subject to the terms and
conditions herein set forth, the Company agrees that it will issue and sell to
the Purchaser and the Purchaser agrees that it will purchase from the Company
the principal amount of Notes set forth opposite such Purchaser's name on
Exhibit A hereto at a price equal to $4,000,000 (the "Purchase Price", which is
equal to the difference between the $10,000,000 aggregate principal amount of
Existing Notes purchased by the Purchaser from the Company pursuant to the
Existing Agreement and the $14,000,000 principal amount of the Notes).

         SECTION 2.2 CLOSING. Subject to the satisfaction or waiver of all of
the conditions to the parties' obligations hereunder specified in Article IV of
this Agreement, the purchase and sale of the Notes will take place at a closing
(the "Closing") to be held at the offices of Venable, Baetjer and Howard, LLP,
in Baltimore, Maryland, at such time and on such day as the parties hereto
mutually agree upon. The date on which the Closing is to occur is referred to
herein as the "Closing Date."

                                   ARTICLE III
                         REPRESENTATIONS AND WARRANTIES

         SECTION 3.1 REPRESENTATIONS AND WARRANTIES OF THE COMPANY. Except as
Previously Disclosed, the Company represents and warrants to each of the
Purchasers as follows:

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         (a)      Capital Structure. The authorized capital stock of the Company
consists of 400,000,000 shares of Common Stock and 5,000,000 shares of Preferred
Stock. As of February 24, 2000, there were (i) 4,026,122 shares of Common Stock
issued and outstanding and no shares of Common Stock were held as treasury
shares and (ii) 56,905 shares of Series A Convertible Preferred Stock were
issued and outstanding and no shares of Preferred Stock were held as treasury
shares. All outstanding shares of Capital Stock of the Company have been duly
authorized and validly issued and are fully paid and nonassessable and none of
the outstanding shares of Capital Stock of the Company has been issued in
violation of the preemptive rights of any Person. Except as contemplated by this
Agreement or as Previously Disclosed, there are no Stock Equivalents authorized,
issued or outstanding with respect to the Capital Stock of the Company as of the
date hereof. The Company has Previously Disclosed each option to purchase Common
Stock which is outstanding as of the date hereof, including the exercise price
and term thereof, as well as the relevant terms of any other Stock Equivalents
which are outstanding as of the date hereof.

         (b)      Organization, Standing and Authority of the Company. The
Company is a corporation duly organized and validly existing under the laws of
Delaware with full corporate power and authority to own or lease all of its
properties and assets and to carry on its business as now conducted and is duly
licensed or qualified to do business and is in good standing in each
jurisdiction in which its ownership or leasing of property or the conduct of its
business requires such licensing or qualification and where the failure to be so
licensed, qualified or in good standing would have a Material Adverse Effect.
The Company has heretofore delivered true and complete copies of the Certificate
of Incorporation and Bylaws of the Company as in effect as of the date hereof to
each Purchaser which has requested the same.

         (c)      Ownership of Subsidiaries. The Company does not own or have
the right to acquire, directly or indirectly, any outstanding Capital Stock or
other voting securities or ownership interests of any corporation, bank, savings
association, partnership, joint venture or other organization. The outstanding
shares of Capital Stock of each Subsidiary of the Company have been duly
authorized and validly issued, are fully paid and nonassessable, and are
directly owned by the Company free and clear of all Liens. No Stock Equivalents
are authorized, issued or outstanding with respect to the Capital Stock of any
Subsidiary of the Company and there are no agreements, understandings or
commitments relating to the right of the Company to vote or to dispose of such
Capital Stock.

         (d)      Organization, Standing and Authority of Subsidiaries. Each
Subsidiary of the Company (i) is duly organized and validly existing under the
laws of the jurisdiction in which it is organized, (ii) has full corporate power
and authority to own or lease all of its properties and assets and to carry on
its business as now conducted and (iii) is duly licensed or qualified to do
business and is in good standing in each jurisdiction in which its ownership or
leasing of property or the conduct of its business requires such qualification,
except where the failure to be so licensed, qualified or in good standing would
not have a Material Adverse Effect. The Company has heretofore delivered true
and complete copies of the articles of incorporation and bylaws or equivalent
documents of each Subsidiary of the Company as in effect as of the date hereof
to each Purchaser which has requested the same.

                                       8
<PAGE>   12
         (e)      Authority; Due Execution. The Company has full corporate power
and authority to perform its respective obligations under this Agreement and
each of the Related Agreements, and the execution, delivery and performance by
the Company of this Agreement and each Related Agreement have been duly
authorized by all necessary corporate action on the part of the Company. This
Agreement has been duly executed and delivered by the Company and constitutes,
and each of the Related Agreements, when duly executed and delivered by the
Company, will constitute, a valid and binding obligation of the Company,
enforceable against the Company in accordance with its terms, except (i) rights
to indemnity and contribution under the Registration Rights Agreement may be
limited by applicable law, (ii) enforceability may be limited by bankruptcy,
insolvency, moratorium and similar laws affecting creditors' rights generally
and (iii) rights of acceleration and the availability of equitable remedies may
be limited by equitable principles of general applicability.

         (f)      No Conflict. Neither the execution and delivery of this
Agreement and each of the Related Agreements, nor consummation of the
transactions contemplated hereby and thereby, nor compliance by the Company with
any of the provisions hereof or thereof, (i) does or will conflict with or
result in a breach of any provisions of the Certificate of Incorporation or
Bylaws of the Company or the equivalent documents of any Subsidiary of the
Company, (ii) violate, conflict with or result in a breach of any term,
condition or provision of, or constitute a default (or an event which, with
notice or lapse of time, or both, would constitute a default) under, or give
rise to any right of termination, cancellation or acceleration with respect to,
or result in the creation of any Lien upon any property or asset of the Company
or a Subsidiary of the Company pursuant to, any material note, bond, mortgage,
indenture, deed of trust, license, lease, agreement or other instrument or
obligation to which the Company or a Subsidiary of the Company is a party, or by
which any of their respective properties or assets may be bound or affected, or
(iii) subject to the compliance referred to in clauses (i) and (ii) of the
succeeding sentence, violate any order, writ, injunction, decree, statute, rule
or regulation applicable to the Company or a Subsidiary of the Company. Except
for (i) compliance with applicable federal and State securities laws in
connection with this Agreement and the performance by the Company of its
obligations under the Registration Rights Agreement and (ii) any required
compliance by the Company with applicable federal and State securities laws
and/or the HSR Act in connection with the issuance of shares of Common Stock
upon conversion of the Notes in accordance with their terms, no consent,
approval, order or other authorization of any Governmental Entity or of any
third party is required by or on behalf of the Company or a Subsidiary of the
Company in connection with the execution, delivery and performance of this
Agreement and each of the Related Agreements. The representations and warranties
contained in this Section 3.1(f), insofar as they relate to federal and State
securities laws requirements, are made in reliance on the representations and
warranties of the Purchaser contained in Section 3.2 of this Agreement.

         (g)      Status of Securities. The Securities have been authorized by
all necessary corporate action on the part of the Company. When delivered to the
Purchaser at the Closing against payment therefor as provided herein, the Notes
will be duly authorized and validly issued and will not be issued in violation
of the preemptive rights of any Person. Subject to the approvals and compliance
referred to in the second sentence of Section 3.1(f) hereof, shares of Common
Stock issued by the Company upon conversion of the Notes in accordance with
their terms will be duly authorized,

                                       9
<PAGE>   13

validly issued and non-assessable at the time of issuance and will not be
issued in violation of the preemptive rights of any Person. The representations
and warranties contained in this Section 3.1(g), insofar as they relate to
federal and State securities laws requirements, are made in reliance on the
representations and warranties of the Purchaser contained in Section 3.2 of this
Agreement.

         (h)      Securities Reports. The Company has filed all Securities
Documents required to be filed by it under the Securities Laws on a timely basis
or has received a valid extension of such time of filing, and all such
Securities Documents complied in all material respects with the requirements of
the Securities Laws and did not contain any untrue statement of a material fact
or omit to state any material fact required to be stated therein or necessary in
order to make the statements therein, at the time and in light of the
circumstances under which they were made, not misleading.

         (i)      Financial Statements.

                  (i)      The Company has previously delivered to the Purchaser
(i) statements of financial condition of the Company as of August 31, 1999 and
1998 and statements of operations, changes in stockholders' equity and cash
flows of the Company for each of the years ended August 31, 1999, 1998 and 1997,
accompanied by the related audit report of Deloitte & Touche LLP, (ii) an
unaudited statement of financial condition as of November 30, 1999 and unaudited
statements of operations, changes in stockholders' equity and cash flows of the
Company for the three months ended November 30, 1999 and 1998 and (iii) an
unaudited statement of financial condition as of December 31, 1999 and an
unaudited statement of operations for the three months ended December 31, 1999.
The foregoing financial statements, as well as the financial statements of the
Company to be delivered to the holders of Notes after the Closing pursuant to
the terms of the Notes (collectively the "Company Financial Statements"), fairly
present or will fairly present, as the case may be, in all material respects the
consolidated financial condition of the Company as of the respective dates set
forth therein, and the consolidated results of operations, changes in
shareholders' equity and cash flows of the Company for the respective periods or
as of the respective dates set forth therein in accordance with GAAP.

                  (ii)     Each of the Company Financial Statements has been or
will be, as the case may be, prepared in accordance with GAAP consistently
applied during the periods involved, except as stated therein. The books and
records of the Company and its Subsidiaries are being maintained in material
compliance with applicable legal and accounting requirements, and such books and
records accurately reflect in all material respects all dealings and
transactions in respect of the business, assets, liabilities and affairs of the
Company and its Subsidiaries.

                  (iii)    Except to the extent (x) reflected, disclosed or
provided for in the Securities Documents filed by the Company prior to the date
hereof and (y) of liabilities incurred since August 31, 1999 in the ordinary
course of business, neither the Company nor any Subsidiary of the Company has
any liabilities, whether absolute, accrued, contingent or otherwise, which has
had or could reasonably be expected to have a Material Adverse Effect.

                                       10
<PAGE>   14

         (j)      Material Adverse Change. Since August 31, 1999, (i) the
Company and the Subsidiaries of the Company have conducted their respective
businesses in the ordinary and usual course (excluding the incurrence of
expenses in connection with this Agreement and the Exchange Agreement and the
transactions contemplated hereby and thereby) and (ii) no event has occurred or
circumstance arisen that, individually or in the aggregate, has had or could
reasonably be expected to have a Material Adverse Effect.

         (k)      Environmental Matters.

                  (i)      The Company is in compliance with all Environmental
Laws, except for any violations of any Environmental Law which, individually or
in the aggregate, has not had and could not reasonably be expected to have a
Material Adverse Effect. The Company has not received any communication alleging
that the Company or any Company Subsidiary is not in such compliance and, to the
knowledge of the Company, there are no present circumstances that would prevent
or interfere with the continuation of such compliance.

                  (ii)     None of the properties owned, leased or operated by
the Company or the any Company Subsidiary has been or is in violation of or
liable under any Environmental Law, except for any such violations or
liabilities which, individually or in the aggregate, has not had and could not
reasonably be expected to have a Material Adverse Effect.

                  (iii)    To the knowledge of the Company, there are no past or
present actions, activities, circumstances, conditions, events or incidents that
could reasonably form the basis of any Environmental Claim or other claim or
action or governmental investigation that could result in the imposition of any
liability arising under any Environmental Law against the Company or any of its
Subsidiaries or against any Person whose liability for any Environmental Claim
the Company or any Subsidiary of the Company has or may have retained or assumed
either contractually or by operation of law, except such as, individually or in
the aggregate, have not had and could not reasonably be expected to have a
Material Adverse Effect.

         (l)      Tax Matters.

                  (i)      The Company and its Subsidiaries have timely filed
all Tax Returns required by applicable law to be filed by them (including,
without limitation, estimated tax returns, income tax returns, information
returns and withholding and employment tax returns) and have paid, or where
payment is not required to have been made, have set up an adequate reserve or
accrual for the payment of, all Taxes required to be paid in respect of the
periods covered by such Tax Returns, except in all cases where the failure to do
so, individually or in the aggregate, has not had and could not reasonably be
expected to have a Material Adverse Effect. As of the date hereof, there is no
audit examination, assessed deficiency, deficiency litigation or refund
litigation with respect to any Taxes of the Company or any Subsidiary of the
Company. All Taxes due with respect to completed and settled examinations or
concluded litigation relating to the Company have been paid in full or

                                       11
<PAGE>   15

adequate provision has been made for any such Taxes on the Company's
consolidated statement of financial condition in accordance with GAAP. The
Company has not executed an extension or waiver of any statute of limitations on
the assessment or collection of any Tax that is currently in effect.

                  (ii)     Neither the Company nor any Subsidiary of the Company
(i) is a party to any agreement providing for the allocation or sharing of
taxes, (ii) is required to include in income any adjustment pursuant to Section
481(a) of the Code by reason of a voluntary change in accounting method
initiated by the Company or a Subsidiary of the Company (nor does the Company
have any knowledge that the Internal Revenue Service has proposed any such
adjustment or change of accounting method) or (iii) has filed a consent pursuant
to Section 341(f) of the Code or agreed to have Section 341(f)(2) of the Code
apply.

                  (iii)    There has been no "ownership change," as defined
under Section 382 of the Code and regulations thereunder, of the Company since
August 31, 1998, and issuance of the Notes pursuant to this Agreement (assuming
no conversion of such Notes) and consummation of the Exchange (including
conversion of the Exchange Notes) pursuant to the Exchange Agreement and the
Exchange Notes will not result in such an ownership change of the Company.

         (m)      ERISA. The Company is in compliance in all material respects
with all presently applicable provisions of ERISA; to the knowledge of the
Company, no "reportable event" (as defined in ERISA) has occurred with respect
to any "pension plan" (as defined in ERISA) for which the Company would have any
material liability; the Company has not incurred and does not expect to incur
liability under (i) Title IV of ERISA with respect to termination of, or
withdrawal from, any "pension plan" or (ii) Sections 412 (whether or not waived)
or 4971 of the Code; and each "pension plan" for which the Company would have
any liability that is intended to be qualified under Section 401(a) of the Code
is so qualified in all material respects and to the knowledge of the Company
nothing has occurred, whether by action or by failure to act, which would cause
the loss of such qualification.

         (n)      Litigation. There are no actions, suits, investigations or
legal proceedings instituted, pending or, to the knowledge of the Company,
threatened against the Company or any Subsidiary of the Company or against any
asset, interest or right of the Company or any Subsidiary of the Company, or
against any director, officer or employee of any of them that in any such case,
if decided adversely, could reasonably be expected to have, individually or in
the aggregate, a Material Adverse Effect. Neither the Company nor any Subsidiary
of the Company is a party to any order, judgment or decree which has had or
could reasonably be expected to have a Material Adverse Effect.

         (o)      Compliance with Laws. The Company and each Subsidiary of the
Company has all permits, licenses, certificates of authority, orders and
approvals of, and has made all filings, applications and registrations with,
federal, State, local and foreign governmental or regulatory bodies that are
necessary in order to permit it to carry on its business as it is presently
being

                                       12

<PAGE>   16

conducted and the absence of which could reasonably be expected to have a
Material Adverse Effect; all such permits, licenses, certificates of authority,
orders and approvals are in full force and effect; and to the best knowledge of
the Company, no suspension or cancellation of any of the same is threatened.

         (p)      No Default or Violation. Neither the Company nor any
Subsidiary of the Company currently is in violation of its Certificate of
Incorporation or Bylaws or equivalent documents, or of any applicable federal,
State or local law or ordinance or any order, rule or regulation of any
Governmental Entity (including, without limitation, all securities, safety,
health, environmental, zoning, anti-discrimination, antitrust, and wage and hour
laws, ordinances, orders, rules and regulations), or in default with respect to
any order, writ, injunction or decree of any court, or in default under any
order, license, regulation or demand of any Governmental Entity, any of which
violations or defaults could, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect, and neither the Company nor any
Subsidiary of the Company has received any notice or communication from any
Governmental Entity asserting that the Company or any Company Subsidiary is in
violation of any of the foregoing which could reasonably be expected to have a
Material Adverse Effect. Neither the Company nor any Subsidiary of the Company
is subject to any regulatory or supervisory cease and desist order, agreement,
written directive, memorandum of understanding or written commitment, and none
of them has received any written communication requesting that they enter into
any of the foregoing.

         (q)      Certain Fees. No fees or commissions will be payable by the
Company to brokers, finders, investment bankers or banks pursuant to any
agreement entered into by the Company with respect to the offer and sale of the
Notes or the Exchange Notes or any of the other transactions contemplated
hereby, by any Related Agreement or by the Stock Purchase Agreement.

         (r)      Patents, Trademarks, Etc. The Company and each of its
Subsidiaries owns or possesses all legal rights to use all proprietary rights,
including without limitation all trademarks, trade names, service marks and
copyrights, that are material to the conduct of their existing businesses.
Neither the Company nor any of its Subsidiaries is bound by or a party to any
options, licenses or agreements of any kind with respect to any trademarks,
service marks or trade names which it claims to own. Neither the Company nor any
of its Subsidiaries has received any communications alleging that any of them
has violated or would violate any of the patents, trademarks, service marks,
trade names, copyrights or trade secrets or other proprietary rights of any
other Person.

         (s)      Loan Matters

                  (i)      Each loan agreement, note or borrowing arrangement,
including without limitation portions of outstanding lines of credit and loan
commitments on the books and records of the Company and its Subsidiaries
(collectively, "Loans") that was made by the Company and to the knowledge of the
Company that was made by any third party was made, and has been serviced in all
material respects in accordance with, the Company's underwriting standards and
the relevant

                                       13
<PAGE>   17

 Loan documentation in the ordinary course of business, is evidenced in all
material respects by appropriate and sufficient documentation and, to the best
knowledge of the Company, constitutes the legal, valid and binding obligation of
the obligor named therein, subject to bankruptcy, insolvency, fraudulent
conveyance and other laws of general applicability relating to or affecting
creditor's rights and to general equity principles.

                  (ii)     None of the agreements pursuant to which the Company
or any Subsidiary has sold Loans or pools of Loans or participations in Loans or
pools of Loans contain any obligation to repurchase such Loans or interests
therein on account of a payment default by the obligor on any such Loans.
Neither the Company nor any of its Subsidiaries is in default under any such
agreement or has received any notice alleging default.

                  (iii)    To the knowledge of the Company, all brokers and
other third parties who originate or have originated Loans have all required
licenses and approvals from all jurisdictions requiring licenses and approvals
and have complied with and are not in violation of any applicable law,
regulation, order, rule, policy or guidelines of any Governmental Entity.

                  (iv)     The practices of the Company and its Subsidiaries
with respect to compensation paid to mortgage brokers comply with the policy
statement issued by the Department of Housing and Urban Development in March
1999.

         (t)      Certain Assets. The Company has Previously Disclosed a true
and correct listing of the following assets of the Company and its Subsidiaries
as of November 30, 1999: (i) all non-performing Loans, securities or other
assets (i.e., all assets on which the Company has ceased recognizing interest
under GAAP or as to which any payments of principal or interest are past due 90
or more days as of such date), (ii) all Loans, securities or other assets as to
which any payments of principal or interest are past due 60 or more days, (iii)
all Loans, securities or other assets not included in the foregoing which have
been classified special mention, substandard, doubtful or loss, or otherwise
classified adversely, by management of the Company or regulatory examiners, and
(iv) each parcel of Real Estate Owned (excepting such parcels as may have been
disposed of in the ordinary course of business subsequent to such date),
including an identification of the amount of reserves which have been
established with respect to each such parcel and its net carrying value.

         (u)      Year 2000 Compliance. All computer hardware and software
owned, used or licensed by the Company or any of its Subsidiaries, including but
not limited to system and application programs, files, databases and computer
services, the failure or disfunctionality of which would individually or in the
aggregate have a Material Adverse Effect is Year 2000 Complaint. "Year 2000
Complaint" means that such hardware and software will (i) correctly process date
data from at least January 1, 1900 through December 31, 2000 without error or
interruption due to date, (ii) maintain functionality with respect to the input,
storing, processing or output of records or data containing dates falling on or
after January 1, 2000, and (iii) be interoperable with other Year 2000 compliant
hardware or software owned, used or licensed by the Company or any of its
Subsidiaries which may

                                       14

<PAGE>   18

deliver records to, receive records from or otherwise interact with such
hardware or software in the course of processing records or data.

         (v)      Labor Matters. Neither the Company nor any of its Subsidiaries
is a party to or is bound by any collective bargaining agreement, contract or
other agreement or understanding with a labor union or labor organization, nor
is the Company or any of its Subsidiaries the subject of a proceeding naming the
Company or any Subsidiary of the Company as a defendant asserting that the
Company or any such Subsidiary has committed an unfair labor practice (within
the meaning of the National Labor Relations Act) or seeking to compel the
Company or any such Subsidiary to bargain with any labor organization as to
wages or conditions of employment, nor is there any strike or other material
labor dispute or disputes involving it or any of its Subsidiaries pending, or to
the Company's knowledge, threatened, nor the Company aware of any activity
involving its or any of its Subsidiaries' employees seeking to certify a
collective bargaining unit or engaging in other organizational activity.

         (w)      Insurance. The Company believes that it and each Subsidiary of
the Company is insured, and during each of the past three calendar years has
been insured, for reasonable amounts with financially sound and reputable
insurance companies against such risks as companies engaged in a similar
business would, in accordance with good business practice, customarily be
insured and has maintained all insurance required by applicable laws and
regulations. All of the policies and bonds maintained by the Company and its
Subsidiaries are in full force and effect and all claims thereunder have been
filed in a due and timely manner and, to the Company's knowledge, no such claim
has been denied.

         (x)      Properties. All real and personal property owned by the
Company or a Subsidiary of the Company or presently used by any of them in its
respective business is in an adequate condition (ordinary wear and tear
excepted) and is sufficient to carry on its business in the ordinary course of
business consistent with its past practices. The Company has good and marketable
title free and clear of all Liens (other than equities of redemption under
applicable foreclosure laws) to all of the material properties and assets, real
and personal, reflected on the consolidated statement of financial condition of
the Company as of August 31, 1999 included in the Company Financial Statements
or acquired after such date, other than properties sold by the Company in the
ordinary course of business, except (i) Liens for current taxes not yet due or
payable, (ii) pledges to secure deposits and other liens incurred in the
ordinary course of its banking business, (iii) such imperfections of title,
easements and encumbrances, if any, as are not material in character, amount or
extent and (iv) as reflected on the consolidated statement of financial
condition of the Company as of May 31, 1999 included in the Company Financial
Statements. All real and personal property which is material to the Company's
business and leased or licensed by the Company or a Subsidiary of the Company is
held pursuant to leases or licenses which are valid and enforceable in
accordance with their respective terms.

         (y)      Investment Company Act of 1940. The Company is not, and will
not become upon consummation of the transactions contemplated hereby and by the
Related Agreements, an

                                       15
<PAGE>   19

"investment company" or an entity "controlled" by an "investment company," as
such terms are defined in the Investment Company Act of 1940, as amended.

         (z)      Private Offering. Neither the Company nor any Person acting on
its behalf has taken or will take any action which might subject the offering,
issuance or sale of the Notes to the registration requirements of the Securities
Act or comparable provisions of any applicable State securities laws.

         (aa)     Exercise of Warrants; Stockholder Approval. After taking into
account the 600,000 shares of Common Stock issued by the Company in connection
with the acquisition of MCI but without regard to the shares of Common Stock
issuable upon conversion of the Notes, an aggregate of 11,027 shares of Common
Stock may be issued by the Company upon conversion of the Notes without
compliance with the stockholder approval requirements of the NASD. The
affirmative vote of the holders of a majority of the shares of Company Common
Stock present in person or by proxy at a duly called meeting of the stockholders
of the Company at which a quorum, consisting of the holders of a majority of the
outstanding shares of Company Common Stock present in person or by proxy, is
present is the only vote of the stockholders of the Company necessary to approve
(i) the conversion features of the Notes in their entirety and (ii) the
consummation of the Exchange pursuant to the Exchange Agreement.

         (bb)     Indebtedness Defaults. As of the date hereof and the Closing
Date, the Company is not in default under any Indebtedness Instrument (which has
not been waived).

         (cc)     Solvency. The Company (i) is now generally paying its debts as
they mature, (ii) owns property which, at a fair valuation, is greater than the
sum of its indebtedness and (iii) has capital sufficient to carry on its
business in the ordinary course consistent with past practice.

         (dd)     Exchange Agreement and Related Agreements.

         (i)      The Company has heretofore delivered to the Purchaser a true
and correct copy of the Exchange Agreement and the Exchange Note Related
Agreements.

         (ii)     The Company has full corporate power and authority to perform
its obligations under the Exchange Agreement and the Exchange Note Related
Agreements, and the execution, delivery and performance by the Company of the
Exchange Agreement and the Exchange Note Related Agreements have been duly
authorized by all necessary corporate action on the part of the Company, except
for the approval of the shareholders of the Company of the issuance of Common
Stock upon conversion of the Exchange Notes pursuant to the requirements of the
NASD. The Subordinated Note Agreement and the Exchange Note Related Agreements
have been duly executed and delivered by the Company and constitute valid and
binding obligations of the Company, enforceable against the Company in
accordance with its terms, except (i) rights to indemnity and contribution under
the Exchange Note Registration Rights Agreement may be limited by applicable
law, (ii) enforceability may be limited by bankruptcy, insolvency, moratorium
and similar laws affecting creditors' rights

                                       16
<PAGE>   20

generally and (iii) rights of acceleration and the availability of equitable
remedies may be limited by equitable principles of general applicability.

         (iii)    Neither the execution and delivery of any of the Exchange
Agreement and the Exchange Note Related Agreements, nor consummation of the
transactions contemplated thereby, nor compliance by the Company with any of the
provisions thereof, (i) does or will conflict with or result in a breach of any
provisions of the Certificate of Incorporation or Bylaws of the Company or the
equivalent documents of any Subsidiary of the Company, (ii) violate, conflict
with or result in a breach of any term, condition or provision of, or constitute
a default (or any event which, with notice or lapse of time, or both, would
constitute a default) under, or give rise to any right of termination,
cancellation or acceleration with respect to, or result in the creation of any
Lien upon any property or asset of the Company or a Subsidiary of the Company
pursuant to, any material note, bond, mortgage, indenture, deed of trust,
license, lease, agreement or other instrument or obligation to which the Company
or a Company Subsidiary is a party, or by which any of their respective
properties or assets may be bound or affected, or (iii) subject to the
compliance referred to in the succeeding sentence, violate any order, writ,
injunction, decree, statute, rule or regulation applicable to the Company or a
Subsidiary of the Company. Except for the approval of the shareholders of the
Company of the issuance of Common Stock upon conversion of the Exchange Notes
pursuant to the requirements of the NASD and actions by the Commission in
connection with the performance by the Company of its obligations under the
Exchange Note Registration Rights Agreement relating to such shares of Common
Stock, no consent, approval, order or other authorization of any Governmental
Entity or of any third party is required by or on behalf of the Company or a
Subsidiary of the Company in connection with the execution, delivery and
performance of the Exchange Agreement and the Exchange Related Agreements.

         (iv)     Except for the approval of the shareholders of the Company of
the issuance of Common Stock upon conversion of the Exchange Notes pursuant to
the requirements of the NASD, the Exchange Securities have been authorized by
all necessary corporate action on the part of the Company. When issued pursuant
to the terms of the Exchange Agreement, the Exchange Securities will be duly
authorized and validly issued and will not be issued in violation of the
preemptive rights of any Person. The Exchange Notes and, assuming receipt of the
shareholder approval referred to in the first sentence of this paragraph (iv),
the shares of Common Stock issued by the Company upon conversion of the Exchange
Notes, will be duly authorized, validly issued and non-assessable at the time of
issuance and will not be issued in violation of the preemptive rights of any
Person.

         (ee)     Disclosure. None of the representations and warranties of the
Company or any of the information or documents which have been Previously
Disclosed to the Purchaser pursuant hereto are false or misleading in any
material respect or contain any untrue statement of a material fact, or omit to
state any material fact required to be stated or necessary to make any such
information or document, at the time and in light of the circumstances, not
misleading. Copies of all documents referred to in this Section 3.1 are true,
correct and complete copies thereof and include all amendments, supplements and
modifications thereto and all waivers thereunder.

                                       17
<PAGE>   21

         SECTION 3.2       REPRESENTATIONS AND WARRANTIES OF THE PURCHASER.

         (a)      Investment Intent. The Purchaser represents and warrants to
the Company that the Securities to be acquired by it hereunder are being
acquired for its own account for investment and with no intention of
distributing or reselling such Securities or any part thereof or interest
therein in any transaction which would be in violation of federal or State
securities laws, without prejudice, however, to the Purchaser's right, subject
to the provisions of this Agreement and the Registration Rights Agreement, at
all times to sell participation interests in the Notes in accordance with
Section 6.13 hereof and/or to sell or otherwise dispose of all or any part of
such Securities under an effective registration statement under the Securities
Act and other applicable State securities laws or under an exemption from such
registration, and subject, nevertheless, to the disposition of the Purchaser's
property being at all times within its control.

         (b)      Transfer Restrictions. If the Purchaser should decide to
dispose of any of the Securities, such Purchaser understands and agrees that it
may do so only as set forth below: (i) to the Company, (ii) to any Person
reasonably believed by such Purchaser to be a "qualified institutional buyer"
("QIB") (as defined in Rule 144A under the Securities Act) in compliance with
Rule 144A under the Securities Act, (iii) pursuant to an exemption from
registration set forth in Rule 144 under the Securities Act, (iv) to any Person
who is reasonably believed by such Purchaser to be an "accredited investor" (as
defined in Rule 501(a) under the Securities Act) and that, prior to such
transfer, furnishes to the Purchaser and the Company a signed letter confirming
its status as an accredited investor and agreeing to the restrictions on
transfer of the Securities set forth in this Agreement, (v) to any Affiliate of
such Purchaser pursuant to an applicable exemption under the Securities Act or
(vi) pursuant to an effective registration statement under the Securities Act,
provided that, notwithstanding the foregoing, so long as certain of the
collateral for the Notes may be held only by a QIB, as reasonably determined by
the Company, the Notes may be offered, sold or otherwise disposed of only
pursuant to clauses (i) or (ii) above. In connection with any transfer of any
Securities other than (i) any transfer pursuant to an effective registration
statement under the Securities Act or (ii) any transfer by a QIB pursuant to
clause (ii) above, the Company may require that the transferor of any such
Securities provide to the Company an opinion of counsel experienced in the area
of United States securities laws selected by the transferor (which may include
in-house counsel of a transferor), which counsel shall be, and the form and
substance of which opinion shall be, reasonably satisfactory to the Company, to
the effect that such transfer does not require registration of such Securities
under the Securities Act or any State securities laws. In connection with any
transfer pursuant to clause (ii) above, the Company may request reasonable
certification as to the status of the transferor's transferee as a QIB. The
Purchaser agrees to the imprinting, so long as appropriate, (i) on the Notes of
the legends set forth on the form of Note included as Exhibit B hereto and (ii)
on certificates representing the Common Stock issuable upon conversion of the
Notes of legends which are substantially similar to such legends. The Notes and
certificates evidencing the Common Stock issuable upon conversion of the Notes
also shall bear any other legends required by applicable federal or State
securities laws, which legends may be removed when, in the opinion of counsel to
the Company experienced in the applicable securities laws, the same are no
longer required under the applicable requirements of such securities laws. The
Company agrees

                                       18
<PAGE>   22
that it will provide the Purchaser, upon request, with a substitute document
evidencing the Securities not bearing such legend at such time as such legend is
no longer applicable.

         (c)      Stop Transfer Instructions. The Purchaser agrees that the
Company shall be entitled to make a notation on its records and give
instructions to any transfer agent of the Securities in order to implement the
restrictions on transfer set forth in Section 3.2(b) of this Agreement.

         (d)      Accredited Investor, etc. The Purchaser represents and
warrants to, and covenants and agrees with, the Company that at the time it was
offered the Notes, it was, and at the date hereof, it is, a "qualified
institutional buyer" as defined in Rule 144A under the Securities Act, and has
such knowledge, sophistication and experience in business and financial matters
so as to be capable of evaluating the merits and risks of the prospective
investment in the Notes, and has so evaluated the merits and risks of such
investment, is able to bear the economic risk of such investment and, at the
present time, is able to afford a complete loss of such investment.

         (e)      Due Execution. The Purchaser represents and warrants to the
Company that this Agreement has been, and each Related Agreement to which it
will become a party will be, duly executed and delivered by it or on its behalf
and constitutes, or will constitute, as applicable, a valid and binding
obligation of such Purchaser, enforceable against the Purchaser in accordance
with its terms, except that (i) rights to indemnity and contribution under the
Registration Rights Agreement may be limited by applicable law, (ii)
enforceability may be limited by bankruptcy, insolvency, moratorium and similar
laws affecting creditors' rights generally and (iii) rights of acceleration and
the availability of equitable remedies may be limited by equitable principles of
general applicability.

         (f)      No Conflict. The Purchaser represents and warrants to the
Company that neither the execution and delivery of this Agreement and each of
the Related Agreements to which the Purchaser is or will become a party, nor
consummation of the transactions contemplated hereby and thereby, nor compliance
by the Purchaser with any of the provisions hereof or thereof, (i) does or will
conflict with or result in a breach of any provisions of the articles of
incorporation or bylaws or equivalent documents of the Purchaser, (ii) violate,
conflict with or result in a breach of any term, condition or provision of, or
constitute a default (or an event which, with notice or lapse of time, or both,
would constitute a default) under, or give rise to any right of termination,
cancellation or acceleration with respect to, or result in the creation of any
Lien upon my property or asset of the Purchaser pursuant to any material note,
bond, mortgage, indenture, deed of trust, license, lease, agreement or other
instrument or obligation to which the Purchaser is a party, or by which any of
its properties or assets may be bound or affected, or (iii), subject to the
compliance referred to in clause (i) and (ii) of the succeeding sentence,
violate any order, writ, injunction, decree, statute, rule or regulation
applicable to the Purchaser. Except for (i) compliance with applicable federal
and State securities laws in connection with the performance by the Purchaser of
its obligations under the Registration Rights Agreement and (ii) any required
compliance by the Purchaser with applicable federal and State securities laws
and the HSR Act in connection with the issuance of shares of Common Stock upon
conversion of the Notes in

                                       19
<PAGE>   23
accordance with their terms, the Purchaser represents and warrants to the
Company that no consent, approval, order or other authorization of

                                       20

<PAGE>   24

any Governmental Entity or of any third party is legally required by or on
behalf of the Purchaser in connection with the execution, delivery and
performance of this Agreement and each Related Agreement to which it will become
a party.

         (g)      Access to Information. The Purchaser acknowledges that prior
to the date hereof it has been afforded (i) the opportunity to ask such
questions as it has deemed necessary of, and to receive answers from,
representatives of the Company concerning the terms and conditions of the
offering of the Notes and the merits and risks of investing in the Notes and
(ii) access to information about the Company and the Company's financial
condition, results of operations, business, properties, management and prospects
sufficient to enable it to evaluate its investment in the Notes.

         (h)      Reliance. The Purchaser understands and acknowledges that (i)
the Notes are being offered and sold without registration under the Securities
Act in a transaction that is exempt from the registration provisions of the
Securities Act and (ii) such exemption depends in part on, and that the Company
will rely upon, the accuracy and truthfulness of the foregoing representations
and warranties of such Purchaser, and such Purchaser hereby consents to such
reliance.

                                   ARTICLE IV
                       CONDITIONS PRECEDENT TO THE CLOSING

         SECTION 4.1  CONDITIONS TO OBLIGATIONS OF THE PARTIES. The respective
obligations of each of the parties hereto to fulfill their obligations under
Section 2.1 hereof at the Closing shall be subject to the satisfaction or waiver
prior to the Closing of the following conditions:

         (a)      All requirements prescribed by law which are necessary to the
consummation of the transactions contemplated by this Agreement shall have been
satisfied.

         (b)      No party hereto shall be subject to any order, decree or
injunction of a court or agency of competent jurisdiction which enjoins or
prohibits the consummation of any of the transactions contemplated by this
Agreement.

         (c)      No statute, rule or regulation shall have been enacted,
entered, promulgated, interpreted, applied or enforced by any Governmental
Entity which prohibits, restricts or makes illegal consummation of any of the
transactions contemplated by this Agreement.

         (d)      The Company shall have entered into binding and enforceable
Exchange Agreements with the holders of not less than 92% principal amount of
Subordinated Notes.

         SECTION 4.2 CONDITIONS TO THE OBLIGATIONS OF THE PURCHASER. The
obligations of the Purchaser to fulfill its obligations under Section 2.1 hereof
shall be subject to the satisfaction or waiver prior to the Closing of the
following conditions:

                                       21
<PAGE>   25

         (a)      Each of the representations and warranties of the Company
contained in this Agreement shall be true and correct in all material respects
as of the date of this Agreement and as of the Closing Date as if made on the
Closing Date (or on the date when made in the case of any representation or
warranty which specifically relates to an earlier date); the Company shall have
performed, in all material respects, each of its covenants and agreements
contained in this Agreement to be performed prior to the Closing; and the
Purchaser shall have received a certificate signed by the Chief Executive
Officer and the Chief Financial Officer of the Company, dated the Closing Date,
to the foregoing effect.

         (b)      The Company shall have delivered to the Purchaser a duly
executed Note, registered in the name of the Purchaser, sufficient to evidence
the Note to be issued and sold by the Company and purchased by the Purchaser, as
set forth on Exhibit A hereto, against payment therefor to the Company in an
amount equal to the Purchase Price (net of the amount of costs as of the Closing
Date which are reimbursable by the Company pursuant to Section 6.5 hereof, which
shall be deemed a partial payment for the Note purchased by the Purchaser in
that sum) and surrender of the Existing Notes.

         (c)      The Purchaser shall have received (i) a counterpart to this
Agreement, duly executed and delivered by the Company, and (ii) a counterpart of
each Related Agreement (other than the Notes), substantially in the form
attached hereto as an exhibit, which shall have been duly executed and delivered
by the Company and the other party or parties thereto (other than the
Purchaser).

         (d)      The Purchaser shall have received, in form and substance
reasonably satisfactory to it, opinions, addressed to the Purchaser and dated
the Closing Date, of King & Spalding and Venable, Baetjer and Howard, LLP
special counsel to the Company, with respect to the indicated matters set forth
in Exhibit G hereto.

         (e)      No party to this Agreement (other than the Purchaser) shall be
in material breach of this Agreement unless such breach shall have been waived
in writing by each of the other parties to this Agreement.

         (f)      The Company shall have obtained in writing all consents of
third parties necessary to permit the consummation of the transactions
contemplated by this Agreement and the Related Agreements, as Previously
Disclosed pursuant to Section 3.1(f) hereof, and no such consent shall contain
any term or condition that the Purchaser reasonably deems to be materially
disadvantageous to the Company or the Purchaser.

         (g)      Each of City National Bank of West Virginia and Sovereign
Bancorp, Inc. shall have waived any adjustments to the terms of the stock
options issued to them pursuant to the Stock Option Agreement, dated May 29,
1998, between the Company and each such entity, that may be required pursuant to
Section 7 of such Stock Option Agreements as a result of (i) the issuance of the
Notes or the conversion thereof to shares of Common Stock in accordance with
their terms and (ii) consummation of the Exchange pursuant to the Exchange
Agreement, in each case in form and

                                       22
<PAGE>   26

substance reasonably satisfactory to the Purchaser, and Sovereign Bank shall
have waived the same pursuant to the Participation Agreement, dated June 29,
1998, between it and the Company.

         (h)      The Purchaser and T. Rowe Price shall have entered into the
Participation Agreement, pursuant to which T. Rowe Price shall have agreed to
purchase on the Closing Date a $5.5 million participation interest in the Notes
issued to the Purchaser pursuant to this Agreement and T. Rowe Price shall have
delivered to the Purchaser on the Closing Date a dollar amount equal to $2.0
million such participation interest (which amount is net of $3.5 million
previously delivered to the Purchaser by T. Rowe Price for participation
interests in the Existing Notes).

         (i)      The Company, the Purchaser, and United States Trust Company of
New York, as collateral agent for the holders of the Notes and the Exchange
Notes, shall have entered into an Intercreditor and Collateral Sharing Agreement
substantially in the form of Exhibit E hereto (the "Intercreditor Agreement"),
and the Company and United States Trust Company of New York, N.A., as trustee,
shall have entered into the Indenture relating to the Exchange Notes in the form
of Exhibit F hereto.

         (j)      The Purchaser shall have received such other certificates,
opinions, documents and instruments related to the transactions contemplated
hereby and the Exchange as may have been reasonably required by it and are
customary for transactions of this type, and all corporate and other
proceedings, and all documents, instruments and other legal matters in
connection with the transactions contemplated by this Agreement, shall be
reasonably satisfactory in form and substance to it and its counsel.

         SECTION 4.3 CONDITIONS TO THE OBLIGATIONS OF THE COMPANY. The
obligations of the Company to fulfill its obligations under Section 2.1 hereof
shall be subject to the satisfaction or waiver prior to the Closing of the
following conditions:

         (a)      Each of the representations and warranties of the Purchaser
contained in this Agreement shall be true and correct in all material respects
as of the date of this Agreement and as of the Closing Date as if made on the
Closing Date (or on the date when made in the case of any representation and
warranty which specifically relates to an earlier date), and the Company shall
have received a certificate signed by a duly authorized representative of each
Purchaser to the foregoing effect.

         (b)      The Purchaser shall have delivered to the Company the Existing
Notes and a dollar amount equal to the Purchase Price (net of the amount of
costs as of the Closing Date which are reimbursable by the Company pursuant to
Section 6.5 hereof), such amount to be payable (i) by wire transfer of
immediately available funds to an account with a bank designated by the Company,
by notice to the Purchaser to be provided no later than two Business Days prior
to the Closing Date, or (ii) a federal (same day) funds check payable to the
order of the Company.

                                       23
<PAGE>   27

         (c)      The Company shall have received (i) a counterpart to this
Agreement, duly executed and delivered by the Purchaser, and (ii) a counterpart
of each Related Agreement (other than the Notes), substantially in the form
attached hereto as an exhibit, which shall have been duly executed and delivered
by the Purchaser.

         (d)      No party to this Agreement (other than the Company) shall be
in material breach of this Agreement unless such breach shall have been waived
in writing by each of the other parties to this Agreement.

         (e)      The Company shall have obtained in writing all consents of
third parties necessary to permit the consummation of the transactions
contemplated by this Agreement and the Related Agreements (other than the
consents referred to in Section 4.2(g) hereof) and no such consent shall contain
any term or condition that the Company reasonably deems to be materially
disadvantageous to the Company.

         (f)      The Company shall have received such other certificates,
opinions, documents and instruments related to the transactions contemplated
hereby as may have been reasonably required by the Company and are customary for
transactions of this type, and all corporate and other proceedings, and all
documents, instruments and other legal matters in connection with the
transactions contemplated by this Agreement, shall be reasonably satisfactory in
form and substance to the Company and its counsel.

                                    ARTICLE V

                                    COVENANTS

         SECTION 5.1 SHAREHOLDER MEETING. The Company shall (i) take all action
necessary (including without limitation the preparation, filing and
dissemination of requisite proxy materials) to have its shareholders approve in
accordance with and to the extent required by the applicable requirements of the
NASD, separate proposals for the issuance of the number of shares of Common
Stock issuable (i) upon full conversion of the Notes and (ii) upon mandatory
conversion of the applicable portion of the Exchange Notes (the "Stockholder
Approvals") at the first annual meeting of the shareholders of the Company held
after the date hereof or at a special meeting of shareholders which is called
for the purpose prior to the holding of such annual meeting of shareholders,
which annual meeting or special meeting shall in no event be held later than
March 9, 2000, (ii) recommend that its shareholders approve each of such
proposals and use its reasonable best efforts to obtain, as promptly as
practicable, such approvals and (iii) reasonably cooperate and consult with the
Purchaser with respect to the foregoing matters, including without limitation
giving the Purchaser the right to review in advance the proxy statement (in
preliminary and definitive form) to be sent to the shareholders of the Company
to solicit the Stockholder Approvals.

                                       24
<PAGE>   28

         SECTION 5.2.      APPLICATIONS.

         (a)      Notwithstanding any other provision hereof to the contrary,
the right of a holder, whether on its own behalf or on behalf of a holder of a
participation interest in the Notes, to convert the principal amount of any
Note, or any portion thereof, and the obligation of the Company to issue any
shares of Common Stock upon the exercise of such conversion right, are subject
to the condition that, if upon receipt by the Company of written notice of
conversion from any holder, whether on its behalf or on behalf of a holder of
participation interest in the Notes, outside counsel advises the Company in
writing (a copy of which shall be provided to the converting holder) that in its
opinion the Company, such holder and/or any participant on behalf of whom such
holder is attempting to exercise conversion rights are required under applicable
law to make a filing under the HSR Act in connection with such conversion and
issuance of shares of Common Stock, no shares of Common Stock shall be issued to
such holder until all applicable filings under the HSR Act are made by the
Company and, if required under the HSR Act, by such holder and any other person
or persons and all applicable waiting periods under the HSR Act have expired or
been terminated. As soon as practicable after the receipt from any holder of the
Notes, whether on its behalf or on behalf of a holder of a participation
interest in the Notes (collectively the "Notice Giver"), of notice of an intent
to convert an amount of Notes sufficient to require a filing under the HSR Act,
but in any event no later than the tenth Business Day after receipt of such
notice, the Company will (i) prepare and file with the Antitrust Division of the
U.S. Department of Justice (the "DOJ") and the Federal Trade Commission (the
"FTC") the Notification and Report Form (accompanied by all documentary
attachments contemplated thereby) required by the HSR Act, (ii) upon the request
of any Notice Giver, request early termination of the waiting period imposed by
the HSR Act, (iii) coordinate and cooperate with the Notice Giver in responding
to formal and informal requests for additional information and documentary
material from the DOJ and the FTC in connection with such filing, (iv) use its
reasonable best efforts to take, or cause to be taken, all reasonable action and
to do, or cause to be done, all things reasonably necessary and appropriate to
permit the issuance to the Notice Giver of the shares of Common Stock issuable
upon the conversion of the Notes with respect to which any filing is required
under the HSR Act and (v) reimburse the holders of the Notes for the entire
amount of any filing fee or any other costs and expenses incurred by holders of
the Notes in connection therewith (including legal fees) or as required to be
paid under the HSR Act. The Notice Giver agrees to provide to the Company all
reasonable cooperation in connection with the making of such filings under the
HSR Act; provided, however, that neither the Company nor any such Notice Giver
shall be required in connection with any such filing to enter into any
agreement, or take or refrain from taking any action, as a condition to
obtaining any approval required under the HSR Act if, in the judgment of such
party, such condition could have a material adverse effect on such party or its
business. In the event that despite their reasonable efforts, the Company and
such Notice Giver do not receive all approvals required under the HSR Act in
connection with such conversion, such holder's notice of conversion shall be
deemed to be rescinded and the Company shall not be obligated to take any
further action with respect to the conversion of such Note pursuant to such
notice of exercise.

                                       25
<PAGE>   29

         (b)      In the event that any other approval, consent or non-objection
need be obtained by the Company from, or a notice or other filing need be filed
by the Company with, any Governmental Entity in connection with (i) the
execution, delivery and performance of this Agreement or any Related Agreement
by the Company or (ii) the Company's issuance of Common Stock upon conversion of
the Notes, the Company shall take all actions reasonably necessary to obtain any
such approval, consent or non-objection or file such notice or other filing as
promptly as practicable, and the Purchaser agrees to cooperate with the Company
in obtaining or filing the same. The Company shall provide copies of any notice,
application or other document required to be filed pursuant to this Section 5.2
(excluding any confidential information) to the holder(s) seeking to convert a
Note or Notes into Common Stock for review not less than three Business Days
prior to the making of such filing and shall keep such holder apprised of the
status of such filing and the consideration thereof by the relevant Governmental
Entity.

         SECTION 5.3       INVESTIGATION AND CONFIDENTIALITY.

         (a)      The Company shall permit the Purchaser and its representatives
reasonable access during normal business hours to its properties and personnel,
and shall disclose and make available to the Purchaser all books, papers and
records relating to the assets, stock ownership, properties, operations,
obligations and liabilities of the Company and its Subsidiaries, including, but
not limited to, all books of account (including the general ledger), tax
records, minute books of meetings of boards of directors (and any committees
thereof) and shareholders, organizational documents, bylaws, material contracts
and agreements, filings with any regulatory authority, accountants' work papers,
litigation files, loan files, plans affecting employees, and any other business
activities or prospects in which the Purchaser may have a reasonable interest in
connection with an investment in the Securities, provided that such access shall
be reasonably related to the transactions contemplated hereby and not unduly
interfere with normal operations, and provided further that in the event that
any of the foregoing are in the control of any third party, the Company shall
use its reasonable best efforts to cause such third party to provide access to
such materials to the Purchaser who shall request the same. In the event that
the Company is prohibited by law from providing any of the access referred to in
the preceding sentence to the Purchaser, it shall use its reasonable best
efforts to obtain promptly waivers thereof so as to permit such access. The
Company shall make the directors, officers, employees and agents and authorized
representatives (including counsel and independent public accountants) of the
Company and its Subsidiaries available to confer with the Purchaser and its
representatives, provided that such access shall be reasonably related to the
transactions contemplated hereby and not unduly interfere with normal
operations.

         (b)      All information furnished to the Purchaser by the Company
previously in connection with the transactions contemplated by this Agreement or
pursuant hereto shall be treated as the sole property of the Company and the
Purchaser covenants, severally and not jointly and as to itself only, that it
shall use its best efforts to keep confidential all such information and shall
not directly or indirectly use such information for any purpose other than in
connection with the transactions contemplated hereby. The obligation to keep
such

                                       26
<PAGE>   30

information confidential shall continue for five years from the date hereof
but shall not apply to (i) any information which the Purchaser can

                                       27
<PAGE>   31

establish by convincing evidence (x) was already in its possession prior to the
disclosure thereof by the Company; (y) was then generally known to the public;
or (z) became known to the public through no fault of the Purchaser; or (ii)
disclosures pursuant to a legal requirement or in accordance with an order of a
court of competent jurisdiction, provided that the Purchaser shall use its
reasonable best efforts to give the Company prior notice thereof as promptly as
practicable but in any event not less than five Business Days prior to such
disclosure and shall limit such disclosure to the minimum amount required by
such legal requirement or court order.

         (c)      No investigation by or on behalf of the Purchaser shall in any
way affect the representations, warranties, covenants or agreements of the
Company set forth herein.

         SECTION 5.4 PRESS RELEASES. The Company and the Purchaser shall agree
with each other as to the form and substance of any press release related to
this Agreement or the transactions contemplated hereby, and consult with each
other as to the form and substance of other public disclosures which may relate
to the transactions contemplated by this Agreement, provided, however, that
nothing contained herein shall prohibit any party, following prior notification
to such other parties, from making any disclosure which it determines in good
faith is required by law or regulation. For purposes of the foregoing, the
Company may treat a law firm designated from time to time by the Purchaser as
the authorized representative of the Purchaser.

         SECTION 5.5 NO SOLICITATION. Prior to consummation of the transactions
contemplated by this Agreement and the Exchange pursuant to the Exchange
Agreement, neither the Company nor any of the directors, officers, employees,
representatives or agents of the Company shall solicit or encourage inquiries or
proposals with respect to, furnish any information relating to, or participate
in any negotiations or discussions concerning, any acquisition, lease or
purchase of all or a substantial portion of the assets of, or any equity
interest in, the Company, or any business combination with the Company, other
than as contemplated by this Agreement and the Exchange Agreement. The Company
will immediately notify the Purchaser orally and in writing if any such
inquiries or proposals are received by, or such information is requested from,
or any such negotiations or discussions are sought to be initiated with, the
Company.

         SECTION 5.6 RULE 144 AND RULE 144A REPORTING. With a view to making
available to holders of Securities the benefits of certain rules and regulations
of the Commission which may permit the sale of the Securities to the public
without registration, the Company agrees at all times to:

         (a)      make and keep public information available, as those terms are
understood and defined in Rules 144 and 144A under the Securities Act (or any
successors thereto); and

         (b)      use its reasonable best efforts to file with the Commission in
a timely manner all Securities Documents required to be filed by the Company
under the Securities Laws.

                                       28
<PAGE>   32

         SECTION 5.7 STAY, EXTENSION AND USURY LAWS.

         The Company covenants (to the extent that it may lawfully do so) that
it shall not at any time insist upon, plead, or in any manner whatsoever claim
or take the benefit or advantage of, any stay, extension or usury law or other
law which would prohibit or forgive the Company from paying all or any portion
of the principal of, premium, if any, or interest on the Notes, wherever
enacted, now or at any time hereafter in force, or which may affect the
covenants or the performance of its obligations under the Notes, and the Company
(to the extent it may lawfully do so) hereby expressly waives all benefits or
advantages of any such law.

                                   ARTICLE VI

                                  MISCELLANEOUS

         SECTION 6.1 SURVIVAL OF PROVISIONS. The representations, warranties,
covenants and agreements of the Company and the Purchaser made herein shall
remain operative and in full force and effect regardless of (i) any
investigation made by or on behalf of the Purchaser or the Company, as the case
may be, (ii) acceptance of any of the Securities and payment by the Purchaser
therefor and retirement thereof, (iii) the transfer of any Securities or
interest therein by the Purchaser or (iv) any termination of this Agreement.

         SECTION 6.2 TERMINATION.  This Agreement may be terminated:

         (a)      by mutual agreement of the Company and the Purchaser;

         (b)      by the Company by written notice to the Purchaser if any of
the conditions specified in Sections 4.1 and 4.3 of this Agreement has not been
met or waived by it pursuant to the terms of this Agreement by 5:00 p.m.,
Eastern Time, on February 29, 2000, provided, however, that the right to
terminate this Agreement pursuant to this Section 6.2(b) shall not be available
to the Company to the extent that any action by the Company or failure by the
Company to fulfill any obligation under this Agreement has been a cause of, or
resulted in, the failure of any one or more of the conditions specified in
Sections 4.1 and 4.3 of this Agreement not being fulfilled by such date; or

         (c)      by the Purchaser by written notice to the Company if any of
the conditions specified in Sections 4.1 and 4.2 of this Agreement has not been
met or waived by such Purchaser pursuant to the terms of this Agreement by 5:00
p.m., Eastern Time, on February 29, 2000, provided, however, that the right to
terminate this Agreement pursuant to this Section 6.2(c) shall not be available
to the Purchaser to the extent that any action by such Purchaser or failure by
such Purchaser to fulfill any obligation under this Agreement has been a cause
of, or resulted in, the failure of any one or more of the conditions specified
in Sections 4.1 and 4.2 of this Agreement not being fulfilled by such date.

                                       29
<PAGE>   33

         SECTION 6.3    WAIVER; AMENDMENTS.

         No failure or delay on the part of the Company or the Purchaser in
exercising any right, power or remedy hereunder shall operate as a waiver
thereof, nor shall any single or partial exercise of any such right, power or
remedy preclude any other or further exercise thereof or the exercise of any
other right, power or remedy. The remedies provided for herein are cumulative
and are not exclusive of any remedies that may be available to the Company or
the Purchaser at law or in equity. No waiver of or consent to any departure by
the Company or the Purchaser from any provision of this Agreement shall be
effective unless signed in writing by the party entitled to the benefit thereof.
Except as otherwise provided herein, no amendment, modification or termination
of any provision of this Agreement shall be effective unless signed in writing
by or on behalf of the Company and the Purchaser. Any amendment, supplement or
modification of or to any of this Agreement, any waiver of any provision of this
Agreement, and any consent to any departure from the terms of any provision of
this Agreement, shall be effective only in the specific instance and for the
specific purpose for which made or given. Except where notice is specifically
required by this Agreement, no notice to or demand on any party hereto in any
case shall entitle another party hereto to any other or further notice or
demand in similar or other circumstances.

         SECTION 6.4    COMMUNICATIONS. All notices, demands and other
communications provided for or permitted hereunder shall be made in writing by
hand-delivery, registered first-class mail, telex, telecopier, or air courier
guaranteeing overnight delivery:

                  (i)   if to the Purchaser, initially at the address set forth
         below its name on Exhibit A hereto, and thereafter at such other
         address, notice of which is given in accordance with this Section 6.4,
         with a copy to T. Rowe Price at T. Rowe Price Recovery Fund, II, L.P.,
         100 E. Pratt Street, Baltimore, Maryland 21202; and

                  (ii)  if to the Company, initially at 1000 Parkwood Circle,
         Suite 600, Atlanta, Georgia 30339, Attention: Chief Financial Officer;
         and thereafter at such other address notice of which is given in
         accordance with this Section 6.4.

         All such notices and communications shall be deemed to have been duly
given: at the time delivered by hand, if personally delivered; five Business
Days after being sent by certified mail, return receipt requested, if mailed;
when answered back, if telexed; when receipt is acknowledged, if telecopied; and
on the next Business Day if timely delivered to an air courier guaranteeing
overnight delivery.

         SECTION 6.5    COSTS, EXPENSES AND TAXES. The Company agrees to (i) pay
all costs and expenses incurred by it in connection with the negotiation,
preparation, typing, reproduction, execution, delivery and performance of this
Agreement, the Related Agreements, the Exchange Agreement and the Exchange Note
Related Agreements and any amendment or supplement or modification hereof or
thereof (except to the extent otherwise provided in the Registration Rights
Agreement or the Exchange Note Registration Rights Agreement), including without
limitation,

                                       30

<PAGE>   34

attorneys fees and expenses and all reasonable costs and expenses incurred by it
in connection with the Company's administration of the foregoing agreements, and
(ii) reimburse the expenses of the Purchaser and T. Rowe Price incurred in
connection with the transactions provided for herein (through a deduction of the
Purchase Price), including reasonable fees and expenses payable to counsel to
the Purchaser and T. Rowe Price in connection with the negotiation, preparation,
typing, reproduction, execution and delivery of this Agreement, the Related
Agreements, the Exchange Agreement and the Exchange Note Related Agreements,
provided that such fees and expenses of counsel in this clause (ii) shall not
exceed $288,000 (such amount being exclusive of amounts paid by the Company in
connection with the negotiation, preparation and execution of the Existing
Agreement, exclusive of all amendments thereto). The Company shall pay all
reasonable costs and expenses (including, without limitation, attorneys' fees
and expenses), if any, incurred by the Purchaser in connection with any waiver,
amendment or modification of any provision of this Agreement or any Related
Agreement with respect to an obligation of, or requested by, the Company. In
addition, the Company shall pay any and all stamp, transfer and other similar
taxes payable in connection with the execution and delivery of this Agreement or
the original issuance of any of the Securities, and shall save and hold the
Purchaser harmless from and against any and all liabilities with respect to or
resulting from any delay in paying, or omission to pay, such taxes.

         SECTION 6.6       EXECUTION IN COUNTERPARTS; FAX EXECUTION.

         (a)      This Agreement may be executed in any number of counterparts
and by different parties hereto on separate counterparts, each of which
counterparts, when so executed and delivered, shall be deemed to be an original
and all of which counterparts, taken together, shall constitute but one and the
same Agreement.

         (b)      For purposes of negotiating and finalizing this Agreement or
any Related Agreement (including any subsequent amendments thereto), any signed
document transmitted by facsimile machine ("FAX") shall be treated in all manner
and respects as an original document. The signature of any party by FAX shall be
considered for these purposes as an original signature. Any such FAX document
shall be considered to have the same binding legal effect as an original
document. Each of the undersigned parties hereby agrees that it will not raise
the use of the FAX or the fact that any signature or document was transmitted or
communicated through the use of a FAX as a defense to the formation of this
Agreement or any Related Agreement.

         SECTION 6.7       BINDING EFFECT; ASSIGNMENT. Prior to the Closing, the
rights and obligations of any Purchaser under this Agreement may not be assigned
to any other Person except with the prior written consent of the Company, and
after the Closing the rights and obligations of the Purchaser may be assigned by
such Purchaser to any Person purchasing Securities from the Purchaser
contemporaneously with such assignment (provided the rights so assigned shall
apply to the Securities so purchased), subject to the provisions of Section
3.2(b). The rights and obligations of the Company under this Agreement may not
be assigned by the Company without the consent of the Purchaser. Except as
expressly provided in this Agreement, this Agreement shall not be construed so
as to confer any right or benefit upon any Person other

                                       31
<PAGE>   35

than the parties to this Agreement, and their respective successors and
permitted assigns. This Agreement shall be binding upon the Company and the
Purchaser and their respective permitted successors and assigns.

         SECTION 6.8 GOVERNING LAW. THE PARTIES HERETO ACKNOWLEDGE THAT THE
TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT AND THE NOTES BEAR A REASONABLE
RELATION TO THE STATE OF MARYLAND IN THAT, INTERALIA, T. ROWE PRICE HAS ITS
PRINCIPAL PLACE OF BUSINESS IN THE STATE OF MARYLAND, PART OF THE NEGOTIATIONS
RELATING TO THE TRANSACTIONS CONTEMPLATED HEREBY HAS OCCURRED IN THE STATE OF
MARYLAND AND THE CLOSING WILL OCCUR IN SUCH STATE. THIS AGREEMENT SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF
MARYLAND, WITHOUT REGARD TO THE PRINCIPLES OF CONFLICT OF LAWS THEREOF.

         SECTION 6.9.  USURY.

         All agreements between the Company and the holders of the Notes,
whether now existing or hereafter arising and whether written or oral, are
hereby limited so that in no contingency, whether by reason of acceleration of
the maturity of the Notes or otherwise, shall the interest contracted for,
charged, received, paid or agreed to be paid to the Noteholders exceed the
maximum amount permissible under the laws of the State of Maryland (hereinafter
the "Applicable Law"). If, from any circumstance whatsoever, interest would
otherwise be payable to the holders of the Notes in excess of the maximum amount
permissible under the Applicable Law, the interest payable to the holders of the
Notes shall be reduced to the maximum amount permissible under the Applicable
Law, and if from any circumstance the holders of the Notes shall ever receive
anything of value deemed interest by the Applicable Law in excess of the maximum
amount permissible under the Applicable Law, an amount equal to the excessive
interest shall be applied to the reduction of the principal of the Notes and not
to the payment of interest, or if such excessive amount of interest exceeds the
unpaid principal amount of the Notes, such excess shall be refunded to the
Company. All interest paid or agreed to be paid to the holders of the Notes
shall, to the extent permitted by the Applicable Law, be amortized, prorated,
allocated and spread throughout the full term of the Notes (including any
renewal or extension) until payment in full of the principal so that the
interest on the Notes for such full term shall not exceed the maximum amount
permissible under the Applicable Law. The Purchaser expressly disavows any
intent to contract for, charge or receive interest in an amount which exceeds
the maximum amount permissible under the Applicable Law. This paragraph as well
as similar paragraphs set forth in the Notes and the Collateral Documents shall
control all agreements between the Company and the holders of the Notes.

         SECTION 6.10  SEVERABILITY OF PROVISIONS. Any provision of this
Agreement which is prohibited or unenforceable in any jurisdiction shall, as to
such jurisdiction, be ineffective to the extent of such prohibition or
unenforceability only without invalidating the remaining provisions hereof or
affecting the validity or enforceability of such provision in any other
jurisdiction.

                                       32
<PAGE>   36

         SECTION 6.11  CONSTRUCTION. The Article and Section headings and Table
of Contents used or contained in this Agreement are for convenience of reference
only and shall not affect the construction of this Agreement. Section and other
references in this Agreement are to this Agreement unless otherwise specified.
In this Agreement, (i) the phrase "to the knowledge of the

                                       33
<PAGE>   37

Company" or words of such import shall mean all knowledge, including actual
knowledge and knowledge of matters which a reasonable person in such position
knew or should have known, of the respective directors and officers of the
Company; (ii) use of a particular gender shall be considered to represent the
masculine, feminine or neuter gender as appropriate; and (iii) the terms
"hereof," "herein," "hereunder" and similar terms refer to this Agreement as a
whole and not to any particular provision. The Company represents and warrants
to the Purchaser that the WHEREAS recitals to this Agreement are true and
accurate and agrees that such recitals constitute an integral part of this
Agreement.

         SECTION 6.12 INTEGRATION. This Agreement (including documents delivered
pursuant hereto) and the Related Agreements constitute the entire agreement
among the parties with respect to the subject matter thereof and supersede all
prior agreements between the parties with respect to such subject matter
(including without limitation the Existing Agreement and the Existing Notes) and
there are no promises or undertakings with respect thereto not expressly set
forth or referred to herein or therein.

         SECTION 6.13 PARTICIPATION INTERESTS. The Company acknowledges and
agrees that immediately following the consummation of the transactions
contemplated hereby the Purchaser will sell an undivided participation interest
in the Note or Notes acquired by it in the principal amount of $5.5 million to
T. Rowe Price pursuant to the Participation Agreement, and that the Purchaser or
any other registered holder of a Note shall have the right to sell additional
participation interests to T. Rowe Price and/or any other third party
(individually a "Participant" and collectively the "Participants") on such terms
as it may determine in its sole discretion. The Company acknowledges that the
original intent of the parties hereto and T. Rowe Price was for T. Rowe Price to
be a party to this Agreement and an acquirer of a Note or Notes, that the
Purchaser entered into this Agreement on the condition that T. Rowe Price be
permitted to purchase a participation interest in such amount and that the
transaction was restructured to provide for T. Rowe Price's acquisition of a
participation interest in the Notes in such amount solely because the Company is
not eligible under the terms of certain of the mortgage-related securities
included in the collateral subject to the Security Agreement to pledge an
interest in such collateral directly to T. Rowe Price. Accordingly, the Company
covenants and agrees that (i) the Purchaser or any other registered holder of a
Note shall be entitled to obtain on behalf of an applicable Participant the
benefits of this Agreement and each Related Agreement and (ii) the Company shall
take such action as may be necessary or advisable in order to enable the
Purchaser or any other registered holder of a Note to do the same and shall not
at any time insist upon, plead or in any manner whatsoever claim that a
Participant is not indirectly entitled to a right or benefit available to a
registered holder of a Note under this Agreement or any Related Agreement
because it is a Participant and not such a registered holder. Without in any way
limiting the foregoing, the Company acknowledges and agrees that its obligations
under the Registration Rights Agreement are for the benefit of both the holders
of the Notes and Participants and that any shares of Common Stock acquired by a
Participant upon conversion of a Note or Notes in which such Participant holds a
participation interest shall be subject to the terms of the Registration Rights
Agreement until such shares are no longer "Transfer Restricted Securities," as
such term is defined therein.

                                       34
<PAGE>   38

         SECTION 6.14. NO THIRD PARTY BENEFICIARIES. Except as otherwise
provided in Section 6.13 hereof, this Agreement is solely for the benefit of the
Purchaser and its successors and assigns and any subsequent registered holder of
a Note and nothing contained herein shall be deemed to confer upon any other
Person any right to insist on or to enforce the performance or observance of any
of the obligations contained herein. All conditions to the obligations of the
Purchaser to purchase Notes hereunder are imposed solely and exclusively for the
benefit of the Purchaser and its successors and assigns and no other Person
shall have standing to require satisfaction of such conditions in accordance
with their terms and no other Person shall under any circumstances be deemed to
be a beneficiary of such conditions.

         SECTION 6.15. REPRESENTATION BY COUNSEL. The Company hereby represents
that it has been represented by competent counsel of its choice in the
negotiation and execution of this Agreement and the Related Agreements; that it
has read and fully understands the terms hereof and thereof; that the Company
and its counsel have been afforded an opportunity to review, negotiate and
modify the terms of this Agreement and the Related Agreements and that it
intends to be bound by the terms hereof and thereof.

         SECTION 6.16. WAIVER OF CLAIMS. The Company hereby acknowledges, agrees
and affirms that it possesses no claims, defenses, offsets, recoupment or
counterclaims of any kind or nature against or with respect to the enforcement
of this Agreement or any Related Agreement (collectively, the "Claims"), nor
does the Company now have knowledge of any facts that would or might give rise
to any Claims. If facts now exist which would or could give rise to any Claim
against or with respect to the enforcement of this Agreement or any Related
Agreement, the Company hereby unconditionally, irrevocably and unequivocally
waives and fully releases any and all such Claims as if such Claims were the
subject of a lawsuit, adjudicated to final judgment from which no appeal could
be taken and therein dismissed with prejudice.

         SECTION 6.17. TEXAS LANGUAGE.

         (a)      THIS AGREEMENT, TOGETHER WITH THE RELATED AGREEMENTS,
REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES THERETO WITH RESPECT TO THE
MATTERS COVERED THEREBY AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.

         (b)      THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES
HERETO.

         SECTION 6.18 POWER OF ATTORNEY. The Purchaser, as well as each
subsequent holder of a Note, hereby appoints United States Trust Company of New
York, collateral agent for the holders of the Notes and the Exchange Notes, as
its attorney-in-fact for the purpose of executing on its behalf any of the
Related Agreements, and any amendments, supplements or other modifications
thereto,

                                       35
<PAGE>   39

as well as financing statements related to the Security Agreement, which
appointment is irrevocable and coupled with an interest.

                                   ARTICLE VII
                            INDEMNIFICATION; SET OFF

         SECTION 7.1. INDEMNIFICATION. The Company hereby agrees to reimburse
and indemnify each holder of a Note and its respective agents, employees and
assigns (collectively, the "Indemnified Parties") from and against any and all
losses, liabilities, claims, damages, expenses, obligations, penalties, actions,
judgments, suits, costs or disbursements of any kind or nature whatsoever
(including, without limitation, the fees and disbursements of counsel for such
Indemnified Party in connection with any investigative, administrative or
judicial proceeding commenced or threatened, whether or not such Indemnified
Party shall be designated a party thereto) that may at any time be imposed on,
asserted against or incurred by such Indemnified Party as a result of, or
arising out of, or in any way related to or by reason of, this Agreement or any
Related Agreement, any transaction from time to time contemplated hereby or
thereby, or any transaction financed in whole or in part or directly or
indirectly with the proceeds of any Note (and without in any way limiting the
generality of the foregoing, including any exercise by a holder of a Note of any
of its rights or remedies under this Agreement or any Related Agreement), but
excluding any such losses, liabilities, claims, damages, expenses, obligations,
penalties, actions, judgments, suits, costs or disbursements resulting solely
from the gross negligence or willful misconduct of such Indemnified Party, as
finally determined by a court of competent jurisdiction. If and to the extent
that the foregoing obligations of the Company under this Section 7.1, or any
other indemnification obligation of the Company hereunder or under any Related
Agreement, are unenforceable for any reason, the Company hereby agrees to make
the maximum contribution to the payment and satisfaction of such obligations
which is permissible under applicable law.

         SECTION 7.2. SET-OFF. The Company hereby agrees that if any obligation
or liability of the Company under this Agreement or any Related Agreement shall
be due and payable (by acceleration or otherwise) after the occurrence of an
Event of Default and during the continuation thereof, a holder of a Note shall
have the right, without notice to the Company, to set-off against and to
appropriate and apply to such obligation or liability of the Company any
obligation of any nature owing to the Company, including but not limited to all
deposits (whether time or demand, general or special, provisionally credited or
finally credited, whether or not evidenced by a certificate of deposit) now or
hereafter maintained by the Company with a Purchaser. Such right shall be
absolute and unconditional in all circumstances and, without limitation, shall
exist whether or not a holder of Note or any other Person shall have given
notice or made any demand to the Company or any other Person, whether such
obligation owed to the Company is contingent, absolute, matured or unmatured (it
being agreed that a holder of a Note may deem such obligation to be then due and
payable at the time of such setoff), and regardless of the existence or adequacy
of any collateral, guaranty or any other security, right or remedy available to
a Purchaser or any other Person. The rights provided by this Section 7.2 are in

                                       36
<PAGE>   40

addition to any other rights of set-off and all other rights and remedies which
a holder of a Note may otherwise have under this Agreement, any Related

                                       37
<PAGE>   41

Agreement, at law or in equity or otherwise, and nothing in this Agreement or
any Related Agreement shall be deemed a waiver or prohibition of or restriction
on the rights of set-off or any other rights of any such Person.

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

                                ALTIVA FINANCIAL CORPORATION

                                By: /s/ Edward B. Meyercord
                                    -------------------------------------------
                                    Name:  Edward B. Meyercord
                                    Title: Chairman and Chief Executive Officer

                                VALUE PARTNERS, LTD

                                By:  EWING & PARTNERS,
                                     General Partner

                                By: /s/ Timothy G. Ewing
                                    -------------------------------------------
                                    Name:  Timothy G. Ewing
                                    Title: Managing Partner

                                       38
<PAGE>   42

                                                                       EXHIBIT A

----------------------------------------- ------------------------------------
    Name and Address of Purchaser               Principal Amount of Notes

Value Partners, LTD                                    $14,000,000
4514 Cole Avenue - Suite 808
Dallas, Texas 75205
Attn:  Mr. Timothy Ewing
W (214) 522-2100
FAX (214) 522-2176

                                       2<PAGE>   1
                                                                    EXHIBIT 10.2

THIS AGREEMENT IS SUBJECT TO THE TERMS AND CONDITIONS OF THE INTERCREDITOR AND
COLLATERAL AGREEMENT DATED FEBRUARY 29, 2000 (REFERRED TO HEREIN AS THE
COLLATERAL SHARING AGREEMENT), AS THE SAME MAY BE AMENDED, MODIFIED OR OTHERWISE
SUPPLEMENTED FROM TIME TO TIME, BY AND AMONG ALTIVA FINANCIAL CORPORATION, VALUE
PARTNERS, LTD., AS ORIGINAL PURCHASER OF CERTAIN CONVERTIBLE NOTES ISSUED BY
ALTIVA AND THE HOLDERS FROM TIME TO TIME OF THE OBLIGATIONS ARISING UNDER THE
EXCHANGE AGREEMENT, AS DEFINED HEREIN.

               AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT

         This AMENDED AND RESTATED PLEDGE and SECURITY AGREEMENT, dated as of
February 29, 2000 for reference purposes only (as amended, supplemented or
otherwise modified from time to time, this "Pledge Agreement"), is entered into
between ALTIVA FINANCIAL CORPORATION, a Delaware corporation (the "Borrower"),
having its principal place of business at 1000 Parkwood Circle, Suite 600,
Atlanta, Georgia 30339 and VALUE PARTNERS, LTD., a Texas limited partnership,
having its principal place of business at 4514 Cole Avenue, Suite 808, Dallas,
Texas 75205, as the initial purchaser (the "Initial Purchaser") of the Notes, as
defined herein, issued pursuant to the Purchase Agreement, as defined herein,
and any subsequent registered owners of the Notes sold, assigned or otherwise
transferred in accordance with the Purchase Agreement and the Notes (who are
referred to collectively as the "Noteholders"). All Exhibits attached hereto are
by this reference incorporated herein.

                               W I T N E S S E T H

         WHEREAS, on August 31, 1999, the Borrower and the Initial Purchaser
entered into that certain Secured Convertible Note Purchase Agreement (the
"First Purchase Agreement"), which First Purchase Agreement is incorporated
herein by reference, which provided for the loan by the Noteholders of
$7,000,000.00 in the aggregate to be evidenced by the issuance by the Borrower
of 12% Secured Convertible Notes due 2006 (the "First Notes") to the Initial
Purchaser in the aggregate principal amount of $7,000,000.00; and

         WHEREAS, concurrently with the execution and delivery of the First
Purchase Agreement, the Borrower issued the First Notes to the Initial
Purchaser; and

         WHEREAS, in order to induce the Initial Purchaser to purchase the First
Notes, on August 31, 1999 the Borrower entered into that certain Pledge and
Security Agreement (the "First Pledge Agreement") pursuant to which the Borrower
granted to the Initial Purchaser as agent for the account of the Noteholders
(the "Agent") (a) a first priority lien and security interest in certain
Collateral, as defined therein, and (b) a subordinated lien and security
interest in certain collateral at that time pledged to and subject to the
security interest of Greenwich Capital Financial Products, Inc., a Delaware
corporation pursuant to that certain Pledge and

                                                                          PAGE 1
<PAGE>   2

Security Agreement, dated April 17, 1997, which subordinated lien became a first
priority lien and security interest on such date or dates of the Borrower's
satisfaction of its indebtedness and obligations to Greenwich secured by such
collateral; and

         WHEREAS, in order to induce the Initial Purchaser to purchase the
Notes, the Borrower has agreed to grant to the Noteholders a first priority lien
and security interest in the Textron Collateral, as defined herein, pledged by
the Borrower to Textron Financial Corporation ("Textron") pursuant to the
Textron Documents, as defined herein, and to deliver to the Collateral Agent on
behalf of the Noteholders the Textron Collateral, together with appropriate
endorsements in blank, within ten (10) Business Days of the date the security
interest of Textron in the Textron Collateral is extinguished; and

         WHEREAS, on December 13, 1999 the Borrower and the Initial Purchaser
entered into that certain Amendment #1 to the First Purchase Agreement (the
"Second Purchase Agreement"), which Second Purchase Agreement is incorporated
herein by reference, pursuant to which the parties agreed to increase the
principal amount of 12% Secured Convertible Notes by $250,000.00; and

         WHEREAS, in order to induce the Initial Purchaser to purchase the note
in the principal sum of $250,000.00 issued pursuant to the Second Purchase
Agreement (the "Second Note"), the Borrower and the Initial Purchaser entered
into that certain Amendment #1 to Pledge and Security Agreement, dated December
13, 1999 (the "Second Pledge Agreement"), pursuant to which the First Pledge
Agreement was affirmed, amended, modified, confirmed, extended, renewed and
increased to provide that the Second Note was subject to the pledge of
Collateral granted to secure repayment of the First Note pursuant to the terms
of the First Pledge Agreement; and

         WHEREAS, concurrently with the execution and delivery of the Second
Purchase Agreement and the Second Pledge Agreement, the Borrower issued the
Second Note to the Initial Purchaser; and

         WHEREAS, on or about December 31, 1999, the Borrower and the Initial
Purchaser entered into that certain Amendment #2 to the First Purchase Agreement
(the "Third Purchase Agreement"), pursuant to which the parties agreed to
increase the principal amount of 12% Secured Convertible Notes by $1,750,000.00,
of which $750,000.00 was funded on December 31, 1999 and $1,000,000.00 on
January 5, 2000; and

         WHEREAS, to induce the Initial Purchaser to purchase the note in the
principal sum of $1,750,000.00 (the "Third Note") issued pursuant to the Third
Purchase Agreement, the Borrower and Initial Purchaser entered into that certain
Amended and Restated Pledge and Security Agreement, dated for reference purposes
only as of December 31, 1999 (the "Third Pledge Agreement"), pursuant to which
the liens and rights granted in the First Pledge Agreement and the Second Pledge
Agreement were affirmed, amended, modified, confirmed, extended, increased and
renewed; and

                                                                          PAGE 2
<PAGE>   3

         WHEREAS, concurrently with the execution and delivery of the Third
Purchase Agreement and the Third Pledge Agreement, the Borrower issued the Third
Note to the Initial Purchaser; and

         WHEREAS, in addition to the Collateral pledged to secure repayment in
the First Pledge Agreement and the Second Pledge Agreement, the Borrower in the
Third Pledge Agreement granted a first lien and security interest in the Pledged
Shares, as defined herein, up to $2,000,000.00 aggregate principal amount of
Notes purchased by the Initial Purchaser on or after December 30, 1999,
consisting of the Third Note and an additional note or notes in the principal
amount of $250,000.00, if issued; and

         WHEREAS, on February 2, 2000, the Borrower and the Initial Purchaser
entered into Amendment #3 to the First Purchase Agreement (the "Fourth Purchase
Agreement"), which Fourth Purchase Agreement is incorporated herein by
reference, pursuant to which the parties agreed to increase the principal amount
of 12% Secured Convertible Notes by $700,000.00; and

         WHEREAS, to induce the Initial Purchaser to purchase the note in the
principal amount of $700,000.00 (the "Fourth Note") issued pursuant to the
Fourth Purchase Agreement, the Borrower and the Initial Purchaser entered into
Amendment #1 to the Amended and Restated Pledge and Security Agreement, dated
for reference purposes only as of February 2, 2000 (the "Fourth Pledge
Agreement"), pursuant to which the liens and rights granted in the First, Second
and Third Pledge Agreements were affirmed, amended, modified, confirmed,
increased and renewed, including an increase in the first lien and security
interest in the Pledged Shares to $2,450,000.00 as additional security for the
Third Note and Fourth Note; and

         WHEREAS, concurrently with the execution and delivery of the Fourth
Purchase Agreement and the Fourth Pledge Agreement, the Borrower issued the
Fourth Note to the Initial Purchaser; and

         WHEREAS, on February 11, 2000, the Borrower and the Initial Purchaser
entered into Amendment #4 to the First Purchase Agreement (the "Fifth Purchase
Agreement," and together with the First, Second, Third and Fourth Purchase
Agreements, the "Prior Purchase Agreements"), which Fifth Purchase Agreement is
incorporated herein by reference, pursuant to which the parties agreed to
increase the principal amount of 12% Secured Convertible Notes by $300,000.00;
and

         WHEREAS, to induce the Initial Purchaser to purchase the note in the
principal amount of $300,000.00 (the "Fifth Note," and together with the First,
Second, Third and Fourth Notes, the "Prior Notes") issued pursuant to the Fifth
Purchase Agreement, the Borrower and the Initial Purchaser entered into
Amendment #2 to the Amended and Restated Pledge and Security Agreement, dated
for reference purposes only as of February 11, 2000 (the "Fifth Pledge
Agreement"), pursuant to which the liens and rights granted in the First,
Second, Third and Fourth Pledge Agreements (together with the Fifth Pledge
Agreement, the "Prior Pledge Agreements") were affirmed, amended, modified,
confirmed, increased and renewed, including

                                                                          PAGE 3
<PAGE>   4

an increase in the first lien and security interest in the Pledged Shares to
$2,750,000.00 as additional security for the Third Note, the Fourth Note and the
Fifth Note; and

         WHEREAS, concurrently with the execution and delivery of the Fifth
Purchase Agreement and the Fifth Pledge Agreement, the Borrower issued the Fifth
Note to the Initial Purchaser; and

         WHEREAS, on or about February 29, 2000, the Borrower and the Initial
Purchaser entered into that certain Amended and Restated Secured Convertible
Senior Note Purchase Agreement, (as amended, supplemented or otherwise modified
from time to time the "Purchase Agreement"), which Purchase Agreement is
incorporated herein by reference, which provides for the purchase by the Initial
Purchaser of an Amended and Restated Note in the aggregate principal amount of
$14,000,000.00 (the "Sixth Note"), in return for the surrender of the First
Note, the Second Note, the Third Note, the Fourth Note and the Fifth Note, which
had an aggregate principal amount of $1,000,000.00, and the payment of
$4,000,000.00 by the Initial Purchaser to the Company; and

         WHEREAS, to induce the Initial Purchaser to purchase the Sixth Note,
the Borrower has agreed to enter into this Pledge Agreement, dated for reference
purposes only as of February 29, 2000, pursuant to which the liens and rights
granted in the First Pledge Agreement, the Second Pledge Agreement, the Third
Pledge Agreement, the Fourth Pledge Agreement and the Fifth Pledge Agreement are
affirmed, amended, modified, confirmed, extended, reinstated, increased and
renewed as set forth herein; and

         WHEREAS, pursuant to the Fifth Pledge Agreement, the first lien and
security interest in the Pledged Shares was limited to up to $2,750,000.00
aggregate principal amount of Notes purchased by the Noteholders on or after
December 30, 1999, which limitation is removed herein and the Pledged Shares
shall be collateral as to all Notes; and

         WHEREAS, concurrently with the execution and delivery of the Purchase
Agreement and this Pledge Agreement, the Borrower issued the Sixth Note to the
Initial Purchaser; and

         WHEREAS, pursuant to this Pledge Agreement, all rights and interests of
the Agent granted pursuant to the Prior Pledge Agreements are assigned to the
Noteholders; and

         WHEREAS, on November 26, 1996 and in October 1997, the Borrower
collectively issued $80,000,000.00 principal amount of 12 1/2% Senior
Subordinated Notes Due 2001 to certain holders thereof, which notes subsequently
were exchanged for $ 45,100,000.00 principal amount of 12 1/2% Subordinated
Notes due 2001 (the "Existing Subordinated Notes") and 42,500 shares of
Borrower's Series A Preferred Stock, par value $.01; and

         WHEREAS, as a condition to the Purchase Agreement, the Borrower shall
enter into an Exchange Agreement (the "Exchange Agreement"), with the holders of
not less than ninety-two percent (92%) of the Existing Subordinated Notes,
pursuant to which notes exchanged for the

                                                                          PAGE 4
<PAGE>   5

Existing Subordinated Notes shall be granted certain liens on the Collateral, as
set forth herein; and

         WHEREAS, the Borrower, the Initial Purchaser, and the Collateral Agent,
as agent for the Noteholders, the holders of the Replacement QIB Notes (as
defined herein) and the holders of the Replacement Non-QIB Notes (as defined
herein) have entered into the Collateral Sharing Agreement to set forth the
interests of the respective parties thereto in the Collateral; and

         NOW THEREFORE, in consideration of the premises and for other good and
valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the Borrower and the Noteholders hereby agree as follows:

                                    ARTICLE I
                                   DEFINITIONS

         1.1      Defined Terms. As used herein, the following terms shall have
the following meanings:

         "Accounts" shall have such meaning as such term is defined in Article 9
of the UCC, and shall include, without limitation, each of the following,
whether now owned or hereafter acquired by the Borrower: (a) all accounts
receivable, contract rights, book debts, notes, drafts and other obligations or
indebtedness owing the Borrower (including, without limitation, any such
obligation that might be characterized as an account, contract right, or general
intangible under the UCC in effect in any jurisdiction) and all monies due to or
to become due to the Borrower under all contracts for the sale, lease, or
exchange of goods or other property (whether or not earned by performance on the
part of the Borrower), in each case whether now in existence or hereafter
arising or acquired, including, without limitation, the right to receive the
proceeds thereof; (b) all rights of the Borrower to receive any payment of money
or other form of consideration; (c) all security pledged, assigned or granted to
or held by the Borrower to secure any of the foregoing; and (d) all guaranties
of, or indemnifications with respect to, any of the foregoing.

         "Additional Collateral" means property acceptable to the registered
holders of not less than a majority in aggregate principal amount of the
Majority QIB Holders, then outstanding in writing, in their sole and absolute
discretion.

         "Agent" shall have the meaning specified in the third recital paragraph
hereof.

         "Borrower" shall have the meaning specified in the introductory
paragraph hereof.

         "Business Day" means any day other than Saturday, Sunday or other day
on which banking institutions in Atlanta, Georgia or New York, New York are
authorized or required by law or executive order to be closed.

                                                                          PAGE 5
<PAGE>   6

         "Certificates" means any security, chattel paper, certificated security
or instrument, as from time to time amended, modified or supplemented, including
the following: any Residual Interest Instrument, any Interest Only Instrument,
the Senior Trust Certificate, the Pledged Shares and a Certificated Security as
defined in Section 8-102 of the UCC.

         "Clearing Corporation" shall have the meaning given such term in
Section 8-102(a)(5) of the UCC.

         "Collateral" shall have the meaning specified in Section 2.1.

         "Collateral Agent" means United States Trust Company of New York, in
its capacity as agent of the Noteholders for the purposes set forth in Section
2.2 hereof and as set forth in the Collateral Sharing Agreement, and any
successors and assigns thereof under the Collateral Sharing Agreement.

         "Collateral Sharing Agreement" shall mean that certain Intercreditor
and Collateral Sharing Agreement in the form attached hereto as Exhibit "A" and
by this reference incorporated herein.

         "Default" has the meaning set forth in Article I of the Notes.

         "Delivery" means a delivery of Collateral to the Noteholders or the
Collateral Agent (as the case may be) in accordance with this Pledge Agreement,
including Section 2.2 hereof.

         "Event of Default" has the meaning set forth in Section 5.1 of the
Notes.

         "Exchange Notes" means the Replacement QIB Notes and the Replacement
Non-QIB Notes.

         "Exchange Pledge Agreements" means that certain Pledge and Security
Agreement dated as of the date hereof pursuant to which the holders of the
Replacement QIB Notes are granted a first lien in all Collateral (other than the
Pledged Shares, in which a second lien is granted ) and that certain Pledge and
Security Agreement dated as of the date hereof pursuant to which the holders of
the Replacement Non-QIB Notes are granted a first lien in the Pledged Shares,
each as governed by the Collateral Sharing Agreement.

         "GAAP" means generally accepted accounting principles in the United
States of America as in effect from time to time, consistently applied.

         "Governmental Authority" means any nation, government, state, or any
political subdivision thereof, or any court, stock exchange, entity or agency
exercising executive, legislative, judicial, regulatory or administrative
functions of or pertaining to government.

         "Grantor Trust Right" means all rights of the Borrower, including the
right to payments to the Borrower, in the Sale Agreement executed in relation to
Mego Mortgage Home Loan Trust

                                                                          PAGE 6
<PAGE>   7

1996-3, including, without limitation, the rights set forth in Section
4.05(b)(xvii) of such Sale Agreement.

         "Indebtedness" has the meaning set forth in Section 2 of the Notes.

         "Indenture" means the Indenture, dated as of February 29, 2000, between
the Borrower and United States Trust Company of New York, as Trustee, together
with any amendment, modifications, supplements or restatements thereof.

         "Interest Only Instrument(s)" shall, as to that particular Certificate,
have the meaning ascribed to the term "Class S Certificate", "Class IS
Certificate, "Class IIS Certificate" or a similar phrase describing an interest
only security in the respective Sale Agreement arising from the Securitization
pursuant to which such security is issued, which security represents the
undivided interest of the Borrower in all or a portion of the interest payments
due on certain loans securitized in that Securitization.

         "Loan Documents" means, collectively, the Purchase Agreement, the
Notes, this Pledge Agreement, the Collateral Sharing Agreement, the Registration
Rights Agreement and any other documents evidencing or relating to the Notes or
the Collateral, the Additional Collateral or any such security which may now or
hereafter be given as further security for or in connection with the Notes.

         "Majority Holders" means the registered holders of not less than fifty
percent (50%) in aggregate principal amount of the Notes then outstanding
(except to the extent that a beneficial owner is treated as a registered holder
pursuant to Section 14.16 hereof).

         "Majority QIB Holders" means the registered holders of not less than
fifty percent (50%) in aggregate principal amount of the Notes and Replacement
QIB Notes, considered as a single class, then outstanding (except to the extent
that beneficial owners are treated as registered holders pursuant to Section
14.16 hereof).

         "Noteholders" has the meaning specified in the introductory paragraph
of this Pledge Agreement.

         "Notes" means the 12% Secured Convertible Senior Notes due 2006 issued
by the Borrower pursuant to the Purchase Agreement and the terms of such 12%
Secured Convertible Senior Notes due 2006, as such notes may be amended,
supplemented or otherwise modified from time to time.

         "Outstanding" or "outstanding" has the meaning given to it in the
Indenture.

         "Person" means any individual, partnership, corporation, limited
liability company, joint venture, association, joint stock company, trust,
unincorporated organization, or governmental entity (or any department, agency
or political subdivision thereof), or any other entity.

                                                                          PAGE 7
<PAGE>   8

         "Pledge Agreement" shall have the meaning specified in the first
paragraph hereof.

         "Pledged Shares" shall mean any and all shares of stock or other
evidence of equity or ownership interest of the Borrower in The Money Centre,
Inc. (either as record owner or beneficially), including but not limited to
those shares set forth on Exhibit "D" attached hereto and by this reference
incorporated herein, including any such interests which may be acquired after
the date hereof and the certificates or stock representing all such items. This
shall include all of the issued and outstanding shares of capital stock of The
Money Centre, Inc. in existence until expiration of the Pledge Agreement.

         "Prior Loan Documents" means the Prior Notes, the Prior Pledge
Agreements and the Prior Purchase Agreements.

         "Prior Notes" has the meaning specified in the sixteenth recital
paragraph hereof.

         "Prior Pledge Agreements" has the meaning specified in the sixteenth
recital paragraph hereof.

         "Prior Purchase Agreements" has the meaning specified in the fifteenth
recital paragraph hereof.

         "Purchase Agreement" has the meaning specified in the eighteenth
recital paragraph hereof.

         "Quarter" means any fiscal quarter ended on the last day of the months
of February, May, August and November.

         "Registration Rights Agreement" shall have the meaning set forth in the
Purchase Agreement.

         "Replacement QIB Notes" means those notes issued to those holders of
Existing Subordinated Notes pursuant to the Exchange Agreement which holders are
Qualified Institutional Buyers within the meaning of Rule 144A of the Securities
Act.

         "Replacement Non-QIB Notes" means those notes issued to those holders
of Existing Subordinated Notes pursuant to the Exchange Agreement which holders
are not Qualified Institutional Buyers within the meaning of Rule 144A of the
Securities Act.

         "Residual Interest Instrument(s)" shall, as to that particular
Certificate, have the meaning ascribed to the term "Class R Certificate",
"Residual Interest Instrument", "Residual Certificate", "Residual Instrument" or
a similar phrase describing a certificated residual interest in the Sale
Agreement arising from the Securitization pursuant to which such security is
issued, which security represents the undivided residual interest of the holder,
including in all or a portion of the interest and principal payments due on
certain loans securitized in that Securitization.

                                                                          PAGE 8
<PAGE>   9

Neither the Grantor Trust Right nor the Senior Trust Certificate are Residual
Interest Instruments.

          "Sale Agreement" means the respective Pooling and Servicing Agreement,
Sale and Servicing Agreement or similar agreement, together with related
agreements, including trust agreements and indentures, which create and grant
rights in Certificates and the Grantor Trust Right, entered into or otherwise
issued in relation to a particular Securitization.

         "Securities Act" means the Securities Act of 1933, as now in effect and
as hereafter amended from time to time.

         "Securitization" means the respective securitization as set forth on
Exhibit "E" hereto and by this reference incorporated herein.

         "Senior Trust Certificate" means that certain 125 Home Loan Owner Trust
1998-1, Senior Trust Certificate.

         "Textron" shall have the meaning specified in the fourth recital
paragraph hereof.

         "Textron Collateral" means those Certificates and all other rights
presently pledged to Textron as described in Exhibit "F" attached hereto and by
this reference incorporated herein.

         "Textron Documents" means that certain Credit Agreement dated as of
October 27, 1997 by and between Textron, as agent, and the Borrower, that
certain note as of the same date issued to the lenders under such Credit
Agreement and all related documents, including that certain Security Agreement
dated as of October 27, 1997, financing statements and transfer powers, all as
amended, supplemented or otherwise modified.

         "UCC" means the Uniform Commercial Code as in effect in the State of
Maryland; provided, that if by mandatory provisions of law, the perfection or
effect of perfection or non-perfection of the security interest in any
Collateral to which this Pledge Agreement relates is governed by the Uniform
Commercial Code as in effect on or after the date hereof in any other
jurisdiction, UCC means the Uniform Commercial Code as in effect in such other
jurisdiction for purposes of the provisions hereof relating to such perfection
or the effect of perfection or non-perfection.

         "Uncertificated Security" shall have the meaning given such term in
Section 8-102(a)(18) of the UCC.

                                   ARTICLE II
                        PLEDGE AND DELIVERY OF COLLATERAL
                            MANAGEMENT OF COLLATERAL

         2.1 Security. Subject to the rights of the holders of the Exchange
Notes set forth in the Exchange Pledge Agreements as governed by the Collateral
Sharing Agreement, as security

                                                                          PAGE 9
<PAGE>   10

for the payment (whether at the stated maturity, by acceleration or otherwise)
of all obligations, liabilities and indebtedness of the Borrower to the
Noteholders, whether now or hereafter owing or existing, arising under or
relating to this Pledge Agreement, the Notes and the other Loan Documents, and
for the payment, performance and discharge of all other obligations or
undertakings now or hereafter made for the benefit of the Noteholders under this
Pledge Agreement, the Notes, the other Loan Documents or under any other
agreement, promissory note or undertaking now existing or hereafter entered into
by the Borrower with or to the Noteholders pursuant to the terms hereof,
including any guaranty or surety obligations of the Borrower owed to the
Noteholders arising under or relating to this Pledge Agreement, the Notes and
the other Loan Documents, the Borrower hereby pledges, assigns, transfers and
delivers to the Noteholders, and grants to the Noteholders (and which as to
Collateral pledged pursuant to the Prior Pledge Agreements shall also constitute
a confirmation, extension, renewal and affirmation of such liens), a continuing
first priority lien and security interest (except as noted below or, in the case
of Additional Collateral, as otherwise agreed by the Majority QIB Holders in
accepting the same) in all of the Borrower's rights, title and interest in, to
and under: (a) the Certificates representing the Collateral; (b) the Grantor
Trust Right, subject to the Securitizations; (c) the Pledged Shares and
Certificates; (d) any other property of the Borrower held by the Noteholders,
the Replacement QIB Noteholders, the Replacement Non-QIB Noteholders or the
Collateral Agent on behalf of the Noteholders arising under or relating to the
Loan Documents, from time to time, or securing any other obligation of the
Borrower to the Noteholders or any of their respective affiliates; (e)
Additional Collateral; and (f) all proceeds, payments, income, products and
profits derived from or related to the above-described property (all of the
foregoing are collectively referred to herein as the "Collateral"). The
agreements and related documents evidencing the Grantor Trust Right and the
Certificates, as well as related documents comprising such Collateral are set
forth on Exhibit "C" and Exhibit "D" attached hereto and by this reference
incorporated herein. The Pledged Shares described in Exhibit "D" and the
Residual Interest Instruments, Senior Trust Certificate and Interest Only
Instruments described on Exhibit "C" and Exhibit "F" (attached hereto and by
this reference incorporated herein) are Certificates, all of which are
Collateral.

         The Collateral shall include all rights of the Borrower related to the
Collateral, the Additional Collateral and any other Collateral pledged pursuant
to the terms hereof, including the following:

         (a) Cash Proceeds. All rights to receive the payment of money in
respect of the Collateral, including the Certificates and Grantor Trust Right.

         (b) Chattel Paper, Instruments, etc. All chattel paper, securities,
uncertificated securities, instruments, non-negotiable instruments, negotiable
instruments, investment property, general intangibles, documents (as those terms
are defined in the UCC), Accounts and Certificates evidencing or with respect to
any of the Collateral.

         (c) Deposit Accounts. All rights to payments under the Collateral,
including payments due to the holders of Certificates and the Grantor Trust
Right from the accounts of the trustee (or other Person) into which funds to be
payable under Certificates and the Grantor Trust

                                                                         PAGE 10
<PAGE>   11

Right are deposited or held under a Securitization, and all money, cash and cash
equivalents of the Borrower, in each case arising from payments with respect to
any of the Collateral, including the Certificates and the Grantor Trust Right or
other Collateral.

         (d) Collateral. All collateral granted by third party obligors to, or
held by, the Borrower with respect to the Collateral, including the Certificates
and the Grantor Trust Right.

         (e) Books and Records. All books and records, including books of
account and ledgers of every kind and nature, all electronically recorded data
(including all computer programs, disks, tapes, electronic data processing media
and software used in connection with maintaining the Borrower's books and
records), all files and correspondence and all receptacles and containers for
the foregoing, all with respect to the Collateral, including Certificates and
the Grantor Trust Right.

         (f) Cash. All cash and other property held under this Pledge Agreement.

         (g) Miscellaneous. All right, title, interest in, to and under the
clean-up call provisions, including as contained in Section 9.01 of each of the
Sale Agreement with respect to the subject Securitization, and all proceeds,
payments and income derived from or relating thereto.

         (h) Proceeds and Products. All proceeds and products of the Collateral,
to the extent not included in the foregoing, including;

                           (i) all distributions arising from and pursuant to
                  the designated trust agreements or other Securitization
                  agreements (including Sales Agreements) with respect to the
                  Collateral,

                           (ii) all other proceeds of insurance and guarantees,
                  if any, with respect to the Collateral provided by MBIA
                  Insurance Corporation, the Federal Housing Administration or
                  any other Person providing coverage for loss or diminution in
                  value of the Collateral;

                           (iii) all other proceeds from the liquidation or
                  other recovery (if any) of loans relating to the Collateral;

                           (iv)     all "proceeds", as that term is defined in
                  Section 9-306 of the UCC;

                           (v) all cash, securities, dividends, increases,
                  distributions and profits received therefrom or in connection
                  therewith, including distributions or payments in partial or
                  complete liquidation or redemption, or as a result of
                  reclassifications, readjustments, reorganizations or changes
                  in the capital structure of the issuer thereof and any other
                  property at any time and from time to time received,
                  receivable or otherwise distributed or delivered to the
                  Noteholders or the

                                                                         PAGE 11
<PAGE>   12

                  Collateral Agent on behalf of the Noteholders, and all rights
                  and privileges pertaining thereto;

                           (vi) all additional shares of stock of any issuer of
                  any Certificate from time to time acquired by the Borrower in
                  any manner, and all dividends, cash, instruments and other
                  property from time to time received, receivable or otherwise
                  distributed in respect of or in exchange for any or all of
                  such shares;

                           (vii) all securities hereafter delivered to the
                  Noteholders or the Collateral Agent in substitution for, or in
                  addition to, any of the foregoing, all certificates
                  representing or evidencing such securities, and all cash,
                  securities, instruments, documents, dividends, increases,
                  distributions and profits received therefrom, and any other
                  property at any time and from time to time received by,
                  receivable by or otherwise distributed or delivered to the
                  Noteholders or the Collateral Agent in respect of or in
                  exchange for any or all of the property described;

                           (viii) all subscriptions, warrants, options and any
                  other rights issued now or hereafter by the issuer of the
                  Certificates or any other person whatsoever upon or in
                  connection with the Certificates and any part of the
                  Collateral; and

                           (ix) all products and proceeds of the foregoing and
                  all general intangibles and contract rights related thereto,
                  including without limitation, all revenues, distributions,
                  dividends, property, registration rights, contract rights and
                  other rights and interests that Borrower is, or may hereafter
                  become, entitled to receive on account of any collateral
                  described above.

Borrower shall forthwith deliver to the Collateral Agent on behalf of the
Noteholders all subscriptions, warrants, options and all such other rights, and
upon delivery to the Collateral Agent, the Collateral Agent shall hold, on
behalf of the Noteholders, such subscriptions, warrants, options and other
rights as Collateral pledged to secure the obligations of Borrower, provided,
however, that if the registered holders of not less than fifty percent (50%) in
aggregate principal amount of the Exchange Notes and the Notes, considered as a
single class, then outstanding, to whom such Collateral is pledged determine, in
their sole discretion, that the value of any such subscriptions, warrants,
options or other rights shall terminate, expire or be materially reduced in
value by holding the same as Collateral, such Persons shall have the right (but
not the obligation), in their sole discretion, to direct the Collateral Agent to
sell or exercise the same; and if exercised, then the monies disbursed by the
Collateral Agent in connection therewith shall become part of the Collateral and
all of the stock, securities, evidences of indebtedness and other items so
acquired shall become part of the Collateral;

         The Borrower will pay all filing, recording, search and other expenses
reasonably incurred by the Collateral Agent and each Noteholder with respect to
perfection of the Noteholders' security interest under this Pledge Agreement and
the confirmation of the priority of the Noteholders' security interest in the
Collateral.

                                                                         PAGE 12
<PAGE>   13

         2.2      Delivery of Collateral.

         (a) Delivery of Collateral to the Collateral Agent on behalf of the
Noteholders under this Pledge Agreement shall be made in the following manner:
(i) in the case of cash, including proceeds on the Collateral and cash which
constitutes Additional Collateral, by wire transfer or other method acceptable
to the Collateral Agent of immediately available funds; (ii) in the case of a
Certificate (or similar property perfected by possession), by the physical
delivery thereof evidencing such Collateral to the Collateral Agent or its
designee, either, at the election of the Majority QIB Holders (A) registered in
the name of a Noteholder as designated by the Majority QIB Holders (which shall
be Value Partners, Ltd. unless otherwise consented to by the Majority Holders),
and (B) in all other instances, in suitable form for delivery and transfer,
accompanied by duly executed instruments of transfer or assignment in blank or
such other documentation as may be necessary to effect transfer to the
Noteholders, whereupon, at the election of the Majority QIB Holders, the
Collateral Agent may take such steps as it deems necessary to effect the
recordation or re-registration of such Collateral in the name designated by the
Majority QIB Holders (which shall be in the name of Value Partners, Ltd. so long
as it is a Replacement QIB Noteholder or Noteholder, unless otherwise consented
to by Value Partners, Ltd. ); (iii) with respect to an Uncertificated Security
by registration in the name designated by the Majority Holders, whenever
possible, and in all other instances (other than an Uncertificated Security
credited on the books of a Clearing Corporation), the Borrower shall cause the
issuer of such Uncertificated Security to duly authorize and execute, and
deliver to the Collateral Agent, an agreement for the benefit of the Noteholders
substantially in the form of Exhibit "G" hereto (appropriately completed to the
satisfaction of the Collateral Agent and with such modifications, if any, as
shall be satisfactory to the Collateral Agent) pursuant to which such issuer
agrees to comply with any and all instructions originated by the Collateral
Agent or Majority Holders without further consent by the registered owner and
not to comply with instructions regarding such Uncertificated Security
originated by any other Person other than a court of competent jurisdiction
(Exhibit "G" shall be executed as to the Grantor Trust Right, even if not an
Uncertificated Security); (iv) with respect to a certificated security or
Uncertificated Security (as those terms are defined in the UCC) credited on the
books of a Clearing Corporation (including a Federal Reserve Bank, Participants
Trust Company or The Depository Trust Company), the Borrower shall promptly
notify the Collateral Agent thereof and shall promptly take all actions (x)
required (i) to comply with the applicable rules of such Clearing Corporation
and (ii) to perfect the security interest of the Noteholders under applicable
law (including, in any event, under Sections 9-115 (4)(a) and (b), 9-115 (1)(e)
and 8-106(d) of the UCC) and (y) as the Collateral Agent deems necessary or
desirable to effect the foregoing; and (v) in the case of any other Collateral
(such Collateral to be subject to the written approval of the Collateral Agent,
which approval may be withheld in the sole discretion of the Collateral Agent),
in such manner as the Collateral Agent shall agree to in writing. Except as
otherwise provided herein or, in the case of Additional Collateral, as otherwise
agreed by the Collateral Agent in accepting the same, all Collateral shall be
delivered free and clear of all liens and security interests other than the lien
and security interest created in favor of the Noteholders under this Pledge
Agreement and as provided in the Exchange Pledge Agreements and the Collateral
Sharing Agreement. Collateral delivered pursuant to the Prior Pledge Agreements
shall be retained by Value Partners, Ltd. and transferred to the Collateral
Agent at such time a the Collateral Agreement becomes effective. Current
possession of the Collateral by the Noteholders shall be deemed uninterrupted.

                                                                         PAGE 13
<PAGE>   14

         (b) In addition to the actions required to be taken pursuant to
preceding Section 2.2(a), the Borrower shall take the following additional
actions with respect to the Collateral:

                  (i) with respect to all Collateral of such Borrower whereby or
with respect to which the Noteholders may obtain "control" thereof within the
meaning of Section 8-106 of the UCC (or under any other provision of the UCC as
the same may be amended or supplemented from time to time, or under the laws of
any relevant State other than the State of Maryland), the Borrower shall take
all actions as may be requested from time to time by the Majority Holders so
that "control" of such Collateral is obtained and at all times held by the
Majority Holders; and

                  (ii) Borrower shall from time to time cause appropriate
financing statements (on Form UCC-1 or other appropriate form) under the Uniform
Commercial Code as in effect in the various relevant states, covering all
Collateral hereunder (with the form of such financing statements to be
satisfactory to the respective Noteholder), to be filed in the relevant filing
offices so that at all times the Noteholders have a security interest in all
Collateral which is perfected by the filing of such financing statements (in
each case to the maximum extent perfection by filing may be obtained under the
laws of the relevant states, including, without limitation, Section 9-115(4)(b)
of the UCC).

         (c) Pursuant to the Collateral Sharing Agreement, the Collateral Agent
is appointed agent of the Noteholders for the purpose of retaining physical
possession of the Collateral which may be perfected by possession and as to all
other actions permitted in the Collateral Sharing Agreement, including
enforcement of rights and remedies of the Noteholders.

         2.3 Assignment. In the First, Second, Third, Fourth and Fifth Pledge
Agreements, Value Partners, Ltd. was named as agent on behalf of the
Noteholders. Because there is presently only one Noteholder (Value Partners,
Ltd.) and because a Collateral Agent has been appointed for certain purposes,
all rights granted to the Agent in the Prior Pledge Agreements are granted to
the Noteholders. Certain of those rights and duties are assigned or assumed by
the Collateral Agent, as set forth herein or in the Collateral Sharing
Agreement. Rights granted the Collateral Agent herein are also deemed granted to
the Noteholders.

         2.4      Notice, Registration and Consents.

         On or prior to the date a Certificate, the Grantor Trust Right or any
other property becomes or is to become Collateral, the Borrower shall:

         (a) obtain all requisite consents necessary to provide to the
Noteholders the rights granted in this Pledge Agreement, including the grant and
perfection of the Noteholders of a security interest in such Collateral and, in
the case of registered or certificated Collateral, to (at the sole discretion of
the Majority QIB Holders) deliver the Certificates with duly endorsed powers in
blank or deliver the Certificates or, in the discretion of the Majority QIB
Holders, cause the registration thereof (on the books of the Securitization
trustee, certificate transfer agent and registrar or similar Person) in the name
of Value Partners, Ltd. (or such other person as

                                                                         PAGE 14
<PAGE>   15

consented to by Value Partners, Ltd. and if Value Partners, Ltd. is no longer a
Noteholder or Replacement QIB Noteholder, in the name as designated by the
Majority QIB Noteholders) on behalf of the Noteholders as provided in Section
2.2(a); and

         (b) provide all requisite notices necessary to provide to the
Noteholders the rights granted in this Pledge Agreement, including the grant and
perfection of the Noteholders' security interest in such Collateral, including
the notice set forth in Exhibit "G" attached hereto and by this reference
incorporated herein.

         Notices and consents shall include notices to and consents of the
indenture trustee and the certificate transfer agent and registrar of any
Securitization.

         2.5 Reserved.

         2.6 Shared Collateral and Textron Collateral.

         (a) Pursuant to the Collateral Sharing Agreement, (i) the lien granted
the holders of the Replacement QIB Notes by the Borrower under the Exchange
Pledge Agreement relating to such notes is pari passu with the lien in the
Collateral granted the Noteholders; which pari passu lien shall constitute a
first lien and security interest on all Collateral except the Pledged Shares and
a subordinated lien on the Pledged Shares, subject only to the first lien
thereon granted to the holders of the Replacement Non-QIB Notes in the Exchange
Pledge Agreement relating to such notes, and (ii) the holders of the Replacement
Non-QIB Notes are granted a first lien and security interest in the Pledged
Shares, with any recovery of proceeds from such Pledged Shares not to exceed
such sums as necessary to permit a pro-rata recovery of value equal to that of
the Noteholders and the holders of the Replacement QIB Notes.

         (b) On the date Textron's security interest in the Textron Collateral
is terminated in accordance with the terms of the Textron Documents, the Textron
Collateral shall be deemed Collateral as if it were set forth in Section 2.1 and
included on Exhibit "C". Other than the prompt delivery of such Textron
Collateral (and delivery of appropriate endorsements in blank and all
certificates and documents required by the Securitization trustee) to the
Collateral Agent on behalf of the Noteholders for purposes of registration in
the name of Value Partners, Ltd. (or the designee of the Majority Holders) on
behalf of the Noteholders, the Borrower represents and warrants that no further
action on the part of the Borrower is required to obtain an effective perfected
pledge of the Textron Collateral. Commencing at such time the Noteholders shall
have a first priority lien and security interest therein pursuant to this Pledge
Agreement (subject to the pari passu lien of the holders of the Replacement QIB
Notes) and the Borrower shall within ten (10) Business Days after the expiration
of Textron's security interest deliver to the Collateral Agent and register in
the name of Value Partners, Ltd. (including in compliance with Section 2.2)
those items on Exhibit "F" hereto, together with any other such documents
necessary to perfect the Noteholders' first priority lien and security interest
therein and to grant control to the Noteholders under Article 8 with no further
action necessary to obtain such a grant.

                                                                         PAGE 15
<PAGE>   16
         2.7 Reserved.

         2.8 Held in Trust. Any sums collected or received and any property
recovered or possessed by the Borrower in connection with the Collateral, which,
under the terms of this Pledge Agreement, should have been delivered to the
Collateral Agent or the Noteholders, shall be received and held by the Borrower
in trust for and on the Noteholders' behalf, shall be segregated from the other
assets and funds of the Borrower, and shall be delivered to or the Collateral
Agent for the benefit of the Noteholders.

                                   ARTICLE III
                               FURTHER ASSURANCES

         Subject to the terms of the Textron Documents and the Collateral
Sharing Agreement, the Borrower will, from time to time, at its expense,
execute, deliver, file, register, and record (in such manner and form as the
Majority Holders or Collateral Agent may require) any statement, assignment,
stock powers, instrument, document, agreement, or other paper and take any other
action (including, without limitation, any filings of financing or continuation
statements under the UCC) that the Majority Holders or Collateral Agent may from
time to time determine to be necessary or desirable in order to create,
preserve, upgrade in rank (to the extent required hereby), perfect, confirm, or
validate the lien and first or other priority security interests granted the
Noteholders, or to enable the Noteholders to obtain the full benefits of this
Pledge Agreement (including control, as that term is used in Articles 8 and 9 of
the UCC), and to enable the Noteholders to exercise and enforce any of its
rights, powers, and remedies hereunder with respect to any of the Collateral.

         At the request of the Majority Holders or the Collateral Agent, the
Borrower will use its reasonable best efforts to obtain the consent or
acknowledgement of any Person that is necessary or desirable to effect the
pledge hereunder of any right, title, claims, and benefits now owned or
hereafter acquired by the Borrower.

         To the extent permitted by law, the Borrower hereby authorizes the
Collateral Agent and each Noteholder to execute and file financing statements or
continuation statements without the Borrower's signature appearing thereon. The
Borrower agrees that a carbon, photographic, or other reproduction of this
Pledge Agreement or of a financing statement is sufficient as a financing
statement. The Borrower shall pay the costs of, or incidental to, any financing
or continuation statements concerning the Collateral. In the event that any
re-recording or refiling thereof (or filing of any statements of continuation or
assignment of any financing statement) is required to protect and preserve such
security interest, the Borrower, at its own cost and expense, shall cause the
same to be re-recorded and/or refiled at the time and in the manner requested by
the Collateral Agent or Majority Holders.

         The Borrower hereby authorizes the Noteholders and the Collateral Agent
to file or refile any financing statements, continuation statements, and/or
amended statements with respect to the security interests granted or to be
granted pursuant to this Pledge Agreement which, at any time, may be required or
appropriate, although the same may have been executed only by the Collateral
Agent or the Noteholders, and to execute such statements on behalf of the
Borrower.

                                                                         PAGE 16
<PAGE>   17

         In addition, in the event and to the extent that any of the Collateral
consists of or is represented by Certificates, including instruments or other
evidences of ownership such as would require physical possession of the same in
order to perfect the security interests therein, subject to the terms of the
Collateral Sharing Agreement and the Textron Documents, the Borrower will
promptly, at its expense, deliver the same to the Collateral Agent, with any
necessary endorsements thereon. Upon the Majority Holders' request, subject to
the terms of the Collateral Sharing Agreement and the Textron Documents, the
Borrower shall promptly deliver any documents related to any of the Collateral
and provide the Noteholders all information each may reasonably request
concerning the Collateral. The Borrower will take all steps requested by the
Collateral Agent or Majority Holders to perfect a security interest in the
Additional Collateral, including delivery of physical possession, the granting
of control, the execution and delivery of assignments and/or endorsements, the
registration thereof in the name or names designated by the Majority QIB
Holders, and the execution of financing statements. The Borrower hereby
irrevocably designates each Noteholder and the Collateral Agent for the account
of the Noteholders as agent and attorney-in-fact for the Borrower for the
aforesaid purposes.

                                   ARTICLE IV
                                    COVENANTS

         4.1 No Liens. Subject to the terms of the Textron Documents, the
Exchange Pledge Agreements and the Collateral Sharing Agreement, the Borrower
shall not, without the prior written consent of the holders of the majority in
aggregate principal amount of the Notes and the Exchange Notes, acting as a
single class, at the time outstanding, in any manner, transfer, assign or
further encumber or permit the encumbrance of the Borrower's interest in the
Collateral. If the Collateral, or any part thereof, is sold or otherwise
disposed of in violation of these provisions, the security interest of the
Noteholders shall continue in such Collateral or any part thereof
notwithstanding such sale or other disposition, and the Borrower will deliver
any proceeds thereof to the Collateral Agent.

         4.2 Loan Documents. The Borrower shall at all times during the term of
this Pledge Agreement comply with all of the affirmative covenants, negative
covenants and other terms and provisions contained in the Loan Documents.

         4.3 Consents. On the date Collateral is pledged, the Borrower shall
have obtained all consents of the respective issuer of any Collateral and of any
third party necessary for an effective pledge thereof, including the consent of
any Governmental Authority.

         4.4 Textron Collateral. Subject to the terms of the Exchange Pledge
Agreement relating to the Replacement QIB Notes and the Collateral Sharing
Agreement, the Borrower shall take all action which is necessary or advisable in
order for the Noteholders to obtain, and the Noteholders shall receive, a first
priority lien and security interest in the Textron Collateral not less than ten
(10) Business Days following the date the lien of Textron in the Textron
Collateral terminates.

                                                                         PAGE 17
<PAGE>   18

         4.5      Reserved.

         4.6 Taxes. All payments due the Noteholders under the Loan Documents
shall be made without set-off or counterclaim and free and clear of any
deductions, including deductions for taxes, unless the Borrower is required by
law to make such deductions. If (a) any Noteholder shall be subject to any tax
with respect to any such payment (other than income or franchise taxes), or (b)
the Borrower shall be required to withhold or deduct any tax on any such
payment, then such Noteholder may claim compensation from the Borrower under
Section 4.7. Whenever taxes must be withheld by the Borrower with respect to any
such payments, the Borrower shall promptly furnish to the Noteholders official
receipts (to the extent that the relevant governmental authority delivers such
receipts) evidencing payment of any such taxes so withheld. If the Borrower
fails to pay any such taxes when due or fails to remit to the Noteholders the
required receipts evidencing payment of any such taxes so withheld or deducted,
the Borrower shall indemnify the affected Noteholder for any incremental taxes
and interest or penalties that may become payable by such Noteholder as a result
of any such failure.

         4.7 Compensation Claims. Within fifteen (15) days after the receipt by
the Borrower of a certificate from the a Noteholder setting forth why such
Noteholder is claiming compensation under Section 4.6 and computations (in
reasonable detail) of the amount thereof, the Borrower shall pay to such
Noteholder such additional amounts as such Noteholder sets forth in such
certificate as sufficient fully to compensate it on account of the foregoing
provisions of Section 4.6, together with interest on such amount from the 15th
day after receipt of such certificate until payment in full thereof at the
applicable interest rate on the Notes which is then in effect. The reasonable
determination of such Noteholder of the amount to be paid to it and the basis
for computation thereof hereunder shall, in the absence of manifest error, be
conclusive. In determining such amount, such Noteholder may use any reasonable
averaging and attribution methods.

         4.8 Other Information. The Borrower shall use its best efforts to, and
cause the trustee or servicing agent for a Securitization to, enable each
Noteholder's authorized officers and representatives, during normal business
hours upon reasonable notice and at reasonable intervals, to examine documents,
bank statements and other records and to make copies and notes therefrom for the
purpose of ascertaining the financial condition of the Borrower and its
subsidiaries and the condition of the Collateral, provided, however, that any
such examination shall be at the Borrower's expense, including all reasonable
and necessary travel expenses, but excluding salaries for the officers and
representatives conducting such examination.

         4.9 Books and Records. The Borrower shall at all times keep its records
concerning the Collateral at its chief executive office and principal place of
business (which shall be one and the same) as set forth in this Pledge
Agreement, or so long as the Borrower shall have taken all steps reasonably
necessary to perfect the Noteholders' security interest in the Collateral with
respect to such new address, at such other address as the Borrower may specify
by notice actually received by the Collateral Agent and the Noteholders not less
than (10) Business Days prior to such change of address.

                                                                         PAGE 18
<PAGE>   19

         4.10 Insurance Policies. The Borrower grants to the Collateral Agent on
behalf of the Noteholders full power and authority as its attorney-in-fact,
effective upon notice to the Borrower after the occurrence and during the
continuance of an Event of Default, to adjust and settle any insurance policy
owned by the Borrower insuring against loss to the Collateral, to endorse any
drafts thereon and to sign receipts for any payments thereunder. Any amounts
that the Collateral Agent on behalf of the Noteholders receives under any such
policy (including return of unearned premiums) insuring against loss to the
Collateral shall be delivered to the Collateral Agent to be held as Collateral.

         4.11 Performance of Securitization Obligations. The Borrower shall
perform all servicing and other obligations required to be performed by it under
the Securitization agreements or any other agreement relating to the Collateral
and the Textron Collateral.

         4.12 Protection of the Collateral. All Collateral shall be free and
clear of any liens and restrictions on the transfer hereof, except as
specifically permitted or granted herein. The Borrower shall defend the title to
the Collateral against all claims and demands which could have an effect on the
Noteholders' rights or privileges hereunder. Except as set forth in the
Securitization documents, the Collateral Sharing Agreement, the Exchange Pledge
Agreements and the Textron Documents, the Borrower shall keep the respective
Collateral free and clear of all liens, claims, security interests, restrictions
of transfer, charges, encumbrances, taxes and assessments, and shall pay all
taxes, assessments and fees relating to the Collateral. The Borrower will
exclude from contracts to which it becomes a party after the date hereof
provisions that would prevent the Borrower from creating and maintaining in
favor of the Noteholders a security interest in the Collateral as pledged
hereby. The Borrower shall not modify, amend or waive any terms or conditions of
the Collateral or the Textron Collateral (including the waiver of a default), or
any rights or interest therein, without the prior written consent of the
registered holders of not less than fifty percent (50%) in aggregate principal
amount of the Exchange Notes and the Notes, considered as a single class, then
outstanding that have a security interest in such Collateral. The Borrower will
not sell, assign, transfer or otherwise dispose of any of the Collateral. The
Borrower will not take any action or suffer to exist any conditions that could
have an adverse effect on the Noteholders' rights (including, without
limitation, the security interest in the Collateral) granted hereunder, subject
to the Textron Documents.

         4.13 Applicable Law.  The Borrower will not use any of the
Collateral in violation of any applicable law.

         4.14 Reserved.

         4.15 Records. The Borrower shall allow each Noteholder to inspect all
records of the Borrower relating to the Collateral or to the Notes, and to make
and take away copies of such records.

         4.16 Notice of Change. The Borrower shall promptly notify the
Noteholders of any change in any fact or circumstances warranted or represented
by the Borrower in this Pledge

                                                                         PAGE 19
<PAGE>   20

Agreement or in any other writing furnished by the Borrower to the Noteholders
in connection with the Collateral or the obligations.

        4.17 Notice of Claims. The Borrower shall promptly notify the
Noteholders of any claim, action or proceeding affecting title to the
Collateral, or any part thereof, or the security interest herein, and, at the
request of the Majority Noteholders, appear in and defend, at the Borrower's
expense, any such action or proceeding.

        4.18 Rule 144. The Borrower will cooperate fully with the Noteholders
and the Collateral Agent with respect to any sale by the Collateral Agent of any
of the Collateral, including full and complete compliance with all requirements
of Rule 144 under the Securities Act and will give to the Collateral Agent all
information and will do all things necessary, including the execution of all
documents, forms, instruments, and other items, to comply with Rule 144 and any
and all other rules, regulations or laws of the United States or the appropriate
state necessary for the complete and unrestricted sale and/or transfer of the
Collateral and will exercise its best efforts to have the issuer of such
collateral, upon the request of the Collateral Agent, publicly disseminate all
information required to satisfy Rule 144(c).

        4.19 Merger. The Borrower shall not vote for, or consent to, any
amendment of the articles of incorporation or charter of any issuer of
Collateral that might materially adversely affect the value of the Collateral or
permit the issuer thereof to merge or consolidate with or into any other
corporation, firm or entity.

        4.20 Dividends and Other Distributions. Unless and until an Event of
Default shall have occurred and be continuing, all ordinary cash dividends shall
be paid to the Borrower. The Collateral Agent on behalf of the Noteholders shall
be entitled to receive directly, and to retain as part of the Collateral:

                  (i) all other or additional stock, instruments or other
         securities or property (including, but not limited to, cash dividends
         other than as set forth above) paid or distributed by way of dividend
         or otherwise in respect of the Collateral;

                  (ii) all other or additional stock, instruments or other
         securities or property (including, but not limited to, cash) paid or
         distributed in respect of the Collateral by way of stock-split,
         spin-off, split-up, reclassification, combination of shares or similar
         rearrangement;

                  (iii) all other or additional stock, instruments or other
         securities or property (including, but not limited to, cash) which may
         be paid in respect of the Collateral by reason of any consolidation,
         merger, exchange of stock, conveyance of assets, liquidation or similar
         corporate reorganization; and

                  (iv) all other property (other than cash) paid or distributed
         by way of dividend or distribution in respect of the Collateral.

         All dividends, distributions or other payments which are received by
the Borrower contrary to the provisions of this Section 4.20 or Section 5 shall
be received in trust for the benefit of the Noteholders, shall be segregated
from other property or funds of the Borrower and

                                                                         PAGE 20
<PAGE>   21

shall be forthwith paid over to the Noteholders as Collateral in the same form
as so received (with any necessary endorsement).

         Except as expressly provided for in this Agreement, all payments
received by the Collateral Agent with respect to the Collateral, shall, at the
Collateral Agent's option, be deposited in a special interest bearing account at
a bank (which may be, but need not be, a trust account or escrow account
maintained at the Collateral Agent) to be designated by the Collateral Agent in
the name of the Noteholders and the holders of the Replacement QIB Notes and the
Replacement Non-QIB Notes, as applicable, styled "Collateral Account". Funds in
said account are hereby assigned to the Collateral Agent on behalf of the
Noteholders and shall be impressed with a lien to secure the Notes, and shall be
applied by the Collateral Agent as provided for herein. Nothing herein shall
restrict the right of the Collateral Agent to exercise rights regarding the
distribution of proceeds as provided in Section 9-207 of the applicable UCC (or
a similar provision).

                                    ARTICLE V
                                    REMEDIES

         5.1 Remedies. If an Event of Default shall have occurred and be
continuing, then the Collateral Agent may, without limitation, to the fullest
extent permitted by applicable law, but subject to the Collateral Sharing
Agreement and the Textron Documents, exercise any or all of the following
rights:

         (a) Proceed to exercise any rights or remedies the Noteholders may have
hereunder or under the Notes or any other Loan Documents or otherwise;

         (b) Pursue, consecutively or cumulatively, any rights or remedies the
Noteholders may have at law, equity or otherwise, including all rights and
remedies available to secured parties under the applicable UCC provisions;

         (c) Cancel or otherwise terminate any additional obligations to fund
without prior notice to the Borrower (and the Borrower will be liable to the
Noteholders for any resulting loss, costs and expenses), and the Collateral
Agent (or Noteholders) may: (i) set off any obligation to the Borrower hereunder
or thereunder against any obligation of the Borrower to the Noteholders
hereunder or thereunder; and (ii) realize upon property securing any obligation
to Noteholders hereunder or thereunder;

         (d) Require the Borrower to, upon the Collateral Agent's request,
assemble the Collateral and otherwise make it available to the Collateral Agent.
The Collateral Agent may have a receiver appointed for all or any portion of the
Borrower's assets or business which constitutes the Collateral in order to
manage, protect, preserve, sell and otherwise dispose of all or any portion of
the Collateral in accordance with the terms of the Loan Documents, to continue
the operations of the Borrower and to collect all revenues and profits therefrom
to be applied to the payment of the Notes, including the compensation and
expenses of such receiver. Any Noteholder may offset and apply toward the
payment of the Notes (and/or toward the curing of any Event of Default) any
indebtedness from that Noteholder to the Borrower, including any

                                                                         PAGE 21
<PAGE>   22

indebtedness represented by deposits in any account maintained with any
Noteholder, regardless of the adequacy of any security for the Notes. The
Noteholders shall have no duty to determine the adequacy of any such security in
connection with any such offset;

         (e) To the extent specified in written notice from the Collateral Agent
to the Borrower take any of the following actions (for the sole benefit of the
Noteholders but at the Borrower's expense):

             (i)    To ask for, demand, take, collect, sue for and receive all
payments in respect of any Collateral which the Borrower could otherwise ask
for, demand, take, collect, sue for and receive for its own use;

             (ii)   To extend the time of payment of any Collateral and to make
any allowance or other adjustment with respect thereto;

             (iii)  To settle, compromise, prosecute or defend any action or
proceeding with respect to any Collateral and to enforce all rights and remedies
thereunder which the Borrower could otherwise enforce;

             (iv)   To enforce the payment of any Collateral, either in the name
of the Borrower or in its own name, and to endorse the name of the Borrower on
all checks, drafts, money orders and other instruments tendered to or received
in payment of indebtedness to the Noteholders;

             (v)    To notify the third party payor with respect to any
Collateral of the existence of the security interest created hereby and to cause
all payments in respect thereof thereafter to be made directly to the Collateral
Agent, provided, however, that whether or not the Collateral Agent shall have so
notified such payor, the Borrower will at its expense render all reasonable
assistance to the Collateral Agent in collecting such items and in enforcing
claims thereon;

             (vi)   To sell, transfer, assign or otherwise deal in or with any
Collateral or the proceeds thereof, as fully as the Borrower otherwise could do;

             (vii)  To receive all amounts  payable in respect of the
Collateral  otherwise  payable  under Section 4.20 to the Borrower;

             (viii) To vote all or any part of the Collateral (whether or not
transferred into the name of the Collateral Agent or the Noteholders) and give
all consents, waivers and ratifications in respect of the Collateral and
otherwise act with respect thereto as though it were the outright owner thereof
(the Borrower hereby irrevocably constituting and appointing the Collateral
Agent the proxy and attorney in fact of the Borrower, with full power of
substitution to do so); and

             (ix) To transfer all or any part of the Collateral into the
Collateral Agent's name or the name of its nominee or nominees;

                                                                         PAGE 22
<PAGE>   23

         (f) All or any part of the Collateral may be sold for cash or other
value, and the proceeds thereof applied against any amounts owed to the
Noteholders by the Borrower, in any number of lots at public or private sale in
a commercially reasonable manner, without demand, advertisement or notice,
provided, however, that the Collateral Agent shall give the Borrower 10 days'
prior written notice by first class mail, postage prepaid, to the Borrower's
address as set forth in Section 14.3 of the time and place and proposed terms of
any public sale, or the time after which a private sale may be made, which
notice each of the Borrower and the Collateral Agent agrees to be reasonable. At
any sale or sales of Collateral, the Collateral Agent or the Noteholders or any
of their officers acting on their behalf, or their assigns, may bid for and
purchase all or any part of the property and rights so sold, may use all or any
portion of the indebtedness owed to the Noteholders as payment for the property
or rights so purchased, and upon compliance with the terms of such sale may hold
and dispose of such property and rights without further accountability to the
Borrower, except for the proceeds of such sale or sales pursuant to Article X.
The Borrower acknowledges that any such sale will be made by the Collateral
Agent or the Noteholders on an "as is" basis with disclaimers of all warranties,
whether express or implied. The Borrower will execute and deliver or cause to be
executed and delivered such instruments, documents, assignments, waivers,
certificates and affidavits, will supply or cause to be supplied such further
information and will take such further action, as the Collateral Agent or the
Majority Holders shall reasonably request in connection with any such sale. The
Collateral Agent and the Noteholders shall not be obligated to make such sale of
Collateral regardless of whether such notice of sale has theretofore been given.
Each purchaser at any such sale shall hold the property so sold absolutely free
from any claim or right on the part of the Borrower. In lieu of selling the
Collateral, the Noteholders may credit the current market value of the
Collateral, as determined in a commercially reasonable manner, all free from any
right of redemption, against any amounts owed by the Borrower to the
Noteholders; provided, however, that the Borrower shall remain liable for any
deficiency and shall pay interest on such deficiency as prescribed in the Notes
(the Borrower agreeing that, to the extent that applicable law requires the
giving of notice by the Collateral Agent to the Borrower of any such
disposition, the minimum time required by such law (or if no minimum time is
specified, one Business Day) shall constitute reasonable notice). Neither the
Collateral Agent nor any Noteholder shall be liable for failure to collect or
realize upon any or all of the Collateral or for any delay in so doing nor shall
any of them be under any obligation to take action whatsoever with regard
thereto;

         (g) If, at any time when the Collateral Agent shall determine to
exercise its rights hereunder to sell all or a part of the securities included
in the Collateral, the securities in question shall not be effectively
registered under applicable law, the Collateral Agent may, in its sole
discretion, sell such securities by private or other sale not requiring such
registration in such manner and in such circumstances as the Collateral Agent
may deem necessary or advisable in order that such sale may be effected in
accordance with applicable securities laws without such registration and the
related delays, uncertainty and expense. Without limiting the generality of the
foregoing, in any event the Collateral Agent may in its sole discretion; (a)
approach and negotiate with a single purchaser or one or more possible
purchasers to effect such sale; (b) restrict such sale to one or more purchaser
each of whom will represent and agree that such purchaser is purchasing for its
own account, for investment and not with a view to the

                                                                         PAGE 23
<PAGE>   24

distribution or sale of such securities; and (c) cause to be placed on
certificates representing the securities in question a legend to the effect that
such securities have not been registered under applicable law and may not be
disposed of in violation of the provisions thereof. The Borrower agrees that
such manner of disposition is commercially reasonable, that it will, upon the
Collateral Agent's request, give any such purchaser access to such information
regarding the issuer of the securities in question as the Collateral Agent may
reasonably request and that the Collateral Agent shall not incur any
responsibility for selling all or a part of the securities included in the
Collateral at any private or other sale not requiring such registration,
notwithstanding the possibility that a substantially higher price might be
realized if the sale were deferred until after registration under applicable law
or until made in compliance with certain other rules or exemptions from the
registration provisions under applicable law. The Borrower acknowledges that no
adequate remedy at law exists for breach by it of this provision and that such
breach would not be adequately compensable in damages and therefore agrees that
this provision may be specifically enforced; and/or

         (h) Transfer or assign the Loan Documents to any Person without the
prior written consent of the Borrower.

         5.2 Cost and Expenses on Default. If an Event of Default shall have
occurred, the Collateral Agent and Noteholders shall be entitled to collect, in
addition to principal, interest and delinquency charges hereunder, all costs of
collection, including without limitation, reasonable attorneys' fees and
disbursements, incurred in connection with the protection or realization of
Collateral or in connection with any of such collection efforts, whether or not
suit on the Notes or any foreclosure proceeding is filed, and all such costs and
expenses shall be payable on demand and until paid shall also be secured by the
Collateral and other Loan Documents and by all other collateral held by the
Collateral Agent or Noteholders as security for the Borrower's obligations to
the Noteholders.

         5.3 Marshaling. Neither the Collateral Agent nor any Noteholder shall
be required to make any demand upon, or pursue or exhaust any of its rights or
remedies against, the Borrower or any guarantor, pledgor or any other Person
with respect to the payment of the Notes or to pursue or exhaust any of its
rights or remedies with respect to any Collateral therefore or any direct or
indirect guarantee thereof or insurance with respect thereto. Neither the
Collateral Agent nor the Noteholders shall be required to marshal the Collateral
or any guarantee of the Notes or to resort to the Collateral or any such
guarantee in any particular order, and all of its rights hereunder or under any
other Loan Document shall be cumulative. To the extent it may lawfully do so,
the Borrower absolutely and irrevocably waives and relinquishes the benefit and
advantage of, and covenants not to assert against the Collateral Agent or the
other Noteholders, any valuation, stay, appraisement, extension, redemption or
similar laws now or hereafter existing which, but for this provision, might be
applicable to the sale of any Collateral made under the judgment, order or
decree of any court, or privately under the power of sale conferred by this
Pledge Agreement, or otherwise. Without limiting the generality of the
foregoing, the Borrower: (a) agrees that it will not invoke or utilize any law
which might prevent, cause a delay in or otherwise impede the enforcement of the
rights of the Collateral Agent or the Noteholders in the Collateral; (b) waives
all such laws; and (c) agrees that it will not invoke or raise as a

                                                                         PAGE 24
<PAGE>   25

defense to any enforcement by the Collateral Agent or any Noteholder of any
rights and remedies relating to the Collateral or the Notes, any legal or
contractual requirement with which the Collateral Agent or any Noteholder may
have in good faith failed to comply. In addition, the Borrower waives any right
to prior notice (except to the extent expressly required by the other provisions
of this Pledge Agreement) or judicial hearing in connection with foreclosure on
or disposition of any Collateral, including any such right which the Borrower
would otherwise have under the Constitution of the United States of America, any
state or territory thereof or any other jurisdiction. The Borrower hereby waives
and releases to the fullest extent permitted by law any right or equity of
redemption with respect to the Collateral, whether before or after sale
hereunder.

         5.4 Any action or decision to be made by the Noteholders hereunder or
direction provided to the Collateral Agent hereunder may be by the Majority QIB
Holders. All rights in this Section granted to the Collateral Agent are deemed
are also granted to the Noteholders. So long as the Collateral Agent is
authorized and capable of exercising such rights under the Collateral Sharing
Agreement, it shall be permitted to do so.

                                   ARTICLE VI
                          CONTINUING SECURITY INTEREST

         The Borrower shall not assign or otherwise transfer this Pledge
Agreement or any interest herein without the Majority Holders' prior written
consent. This Pledge Agreement shall create a continuing security interest in
the Collateral and shall: (a) remain in full force and effect until the final
payment in full of all amounts payable under the Notes and the other Loan
Documents; (b) bind the Borrower, its successors and permitted assigns; and (c)
inure to the benefit of the Noteholders and their successors, transferees and
assigns.

         Subject to the requirements of Sections 3.2 of the Purchase Agreement,
upon transfer of Notes, each Noteholder may transfer its interest in the Loan
Documents to any of its successors or assigns, by notice to the Borrower, and
such other person or entity shall thereupon be vested with all the benefits in
respect thereof granted to such Noteholder herein or otherwise; provided that
such successor or assign has agreed in a writing, which shall be delivered to
the Borrower, to assume all of the obligations of the respective Noteholder
under the Loan Documents.

                                   ARTICLE VII
                           REPRESENTATIONS, WARRANTIES
                      AND ADDITIONAL COVENANTS OF BORROWER

         7.1 Representations and Warranties. The Borrower represents and
warrants to the Noteholders continuously throughout the term of the Notes, that:

         (a) The Collateral is owned by the Borrower free and clear of all
liens, claims or encumbrances, except for those granted Noteholders herein
(except as provided in the Collateral Sharing Agreement and the Exchange Pledge
Agreements, and as to the Textron Collateral, the security interest of Textron,
and as to the Certificates and the Grantor Trust Right, subject to the

                                                                         PAGE 25
<PAGE>   26

applicable Securitization). Except as disclosed in this Pledge Agreement, none
of the Collateral is subject to any option to purchase or similar rights of any
Person;

         (b) All Collateral (other than cash, the Grantor Trust Right or
Additional Collateral consented to in writing) shall be evidenced by
certificates or instruments, which certificates or instruments shall, pursuant
to Section 2.2, be endorsed in blank or be registered in the name as designated
by the Majority Holders (initially Value Partners, Ltd.) and delivered to the
Collateral Agent with any related assignment forms, duly completed by the
Borrower, required by the Securitization agreements (or as to the Textron
Collateral, shall be subject to the Textron Documents until such registration
and delivery as provided herein). The Borrower will, promptly upon the receipt
thereof, deliver to the Collateral Agent any certificate or similar instrument
representing any of such Collateral, together with appropriate, duly executed
assignment forms, in accordance with the terms hereof. The Borrower will take
all steps necessary to register the pledge to the Collateral Agent or
Noteholders, as requested by the Majority Holders (or ownership if requested by
the Majority Holders in writing) on the books of the issuer, purchaser, trustee
or custodian, as the case may be, with respect to all Collateral that is not
evidenced by certificates or other instruments in accordance with the terms
hereof;

         (c) The Borrower has obtained any and all permits, licenses, approval
and consents of any Governmental Authority and any third party as may be
required to own, purchase, pledge, sell or otherwise dispose of the Collateral
and to conduct or to transact its business or own, lease or operate its
properties and is in material compliance with all applicable requirements of
law;

         (d) Subject to the Exchange Pledge Agreements, the lien of Textron as
provided in the Textron Documents, and the Collateral Sharing Agreement, the
lien created by this Pledge Agreement constitutes a first priority perfected and
enforceable security interest in the Collateral in favor of the Noteholders; on
each occasion which the Borrower makes a Delivery of Collateral to the
Collateral Agent, the Borrower will be the sole record and beneficial owner of
that Collateral (until registration thereof as provided in Section 2.2) and
will, subject to the terms of this Pledge Agreement, have the right to receive
all payments (subject to the terms of any sales and servicing or pooling and
servicing agreement, indenture or any similar agreement pursuant to which the
Certificates were issued or to which the Grantor Trust Right or any other right
or interest arose) on the Collateral, in each case free and clear of all liens
and security interests other than the lien of this Pledge Agreement, and those
liens set forth above in this paragraph;

         (e) Except for financing statements contemplated or permitted by this
Pledge Agreement, the Exchange Pledge Agreements or the Collateral Sharing
Agreement, there are no financing statements or other actions required under the
UCC or similar law of any state or jurisdiction required in connection with the
grants of security interests to the Noteholders set forth in this Pledge
Agreement;

         (f) No representation or warranty made by or on behalf of Borrower
contained in any Loan Document and no information (written or oral),
certificate, financial statement or report furnished or to be furnished by or on
behalf of the Borrower thereunder or in connection with the transactions
contemplated thereby, contains or will contain an untrue statement of a material
fact,

                                                                         PAGE 26
<PAGE>   27

or, omits or will omit to state any material fact (including without limitation,
whether, to the best knowledge of Borrower, Borrower or any of its respective
officers or directors (past or present) is (or during the last five (5) years
has been) under civil or criminal investigation by a Governmental Authority or
is under indictment by any Governmental Authority) necessary to make the
statements herein or therein contained, in light of the circumstances in which
made, not misleading;

         (g) The Borrower does not have any reason to believe that it will not
be able to perform in all material respects all covenants and agreements to be
performed by it under this Pledge Agreement and each of the other Loan
Documents;

         (h) Each of the representations and warranties of the Borrower
contained in the other Loan Documents is true and correct;

         (i) The right of Borrower to receive a residual cash payment pursuant
to Section 4.05(b)(xvii) of the sale Agreement arising from the Mego Mortgage
Home Loan Trust 1996-3 is non-certificated and is evidenced only by the Sale
Agreement arising from that Securitization;

         (j) Any Residual Interest Instrument pledged as Collateral shall
represent the right of the holder thereof to receive one hundred percent (100%)
of the residual interest in the interest and principal payments due on the
underlying loans securitized in that Securitization, except as follows: (a)
Class R Certificate R-0001, 1996-3 represents the right to receive one hundred
percent (100%) of the residual interests in Group 1 Loans, as that term is
defined in the Sale Agreement for that Securitization; and (b) Residual Interest
Instrument No. 1 1997-1 and Residual Certificate No. 1, 1997-2 each represent
the right to receive ninety-nine percent (99%) of the residual interest in the
respective Securitization;

         (k) Except as disclosed on Schedule I hereto, there is no circumstance
presently in existence which prohibits the receipt of payment of obligations due
pursuant to the terms of the Certificates and the Grantor Trust Right pledged as
Collateral;

         (l) To the best of Borrower's knowledge, all of the Collateral has been
duly and validly authorized, issued, is fully paid and non-assessable and is
subject to no options to purchase or similar rights;

         (m) Each Pledged Share is validly authorized, issued, is fully paid and
non assessable and is subject to no option to purchase or similar rights;

         (n) The execution, delivery and consummation of this Pledge Agreement
will not violate the charter or bylaws of the Borrower or the issuer of any
Collateral or any law, regulation, mortgage, indenture, contract, instrument,
judgment or decree applicable to or binding on the Borrower or the issuer of any
Collateral;

         (o) The Pledged Shares constitute and shall at all times constitute one
hundred percent of the issued and outstanding voting and nonvoting stock of The
Money Centre;

                                                                         PAGE 27
<PAGE>   28

         (p) The Borrower has held the Pledged Shares, free and clear of all
liens, encumbrances and debt, and borne the full economic risk thereof since the
time of acquisition thereof on August 31, 1999 and at no time during said period
did the Borrower hold any short position in the Pledged Shares or option to sell
such shares, and at no time during such period did any other party hold a short
position in the Pledged Shares or an option to sell such shares;

         (q) Other than as provided in the Collateral Sharing Agreement and the
Exchange Pledge Agreements, the pledge, collateral assignment to the Noteholders
and delivery to and continuous possession by the Collateral Agent of the
Collateral consisting of certificated securities pursuant to this Pledge
Agreement creates a valid and perfected first priority security interest in such
securities and the proceeds thereof, subject to no prior lien or encumbrance or
to any agreement purporting to grant to any third party a lien or encumbrance on
the property or assets of the Borrower which would include the Collateral and
the Noteholders are entitled to all the rights, priorities and benefits afforded
by the UCC or other relevant law as enacted in any relevant jurisdiction to
perfect security interests in respect of such Collateral; and

         (r) "Control" (as defined in Section 8-106 of the UCC) has been
obtained by the Noteholders over all Collateral consisting of securities with
respect to which such "control" may be obtained pursuant to Section 8-106 of the
UCC.

                                  ARTICLE VIII
                              THE AGENT MAY PERFORM

         The Borrower hereby appoints any officer, general partner or agent of
the Collateral Agent and/or the Noteholders as the Borrower's true and lawful
attorney-in-fact with full authority in the place and stead of the Borrower and
in the name of the Collateral Agent or the Noteholders (as the case may be) or
otherwise, from time to time in the Collateral Agent's or the Majority Holders'
discretion, to take any action and to execute any agreements, documents and
instruments which the Collateral Agent or the Majority Holders may deem
necessary or advisable to accomplish the purpose of this Pledge Agreement. The
powers conferred on the Collateral Agent or the Noteholders (as the case may be)
hereunder are solely to protect the Noteholders' interest in the Collateral and
shall not impose any duty upon the Collateral Agent or the Noteholders to
exercise any such powers. All authorization and agencies herein contained with
respect to the Collateral are irrevocable and powers coupled with an interest.

                                   ARTICLE IX
                              CUSTODY OF COLLATERAL

         Except as provided by applicable law that cannot be waived, neither the
Noteholders nor the Collateral Agent will have any duty as to the custody and
protection of the Collateral, the collection of any part thereof or of any
income thereon or the preservation or exercise of any rights pertaining thereto,
including rights against prior parties, except for the use of reasonable care in
the custody and physical preservation of any Collateral in its possession.
Neither the Noteholders nor the Collateral Agent will be liable or responsible
for any loss or damage to any

                                                                         PAGE 28
<PAGE>   29

Collateral, or for any diminution in the value thereof, by reason of the act or
omission of any agent selected by the Collateral Agent or the Noteholders acting
in good faith.

                                    ARTICLE X
                     APPLICATION OF COLLATERAL AND PROCEEDS

         Subject to the Collateral Sharing Agreement, the proceeds of any sale
of, or other realization upon, all or any part of the Collateral shall be
applied in the order set forth in Section 5.3 of the Notes.

                                   ARTICLE XI
                           SECURITY INTEREST ABSOLUTE

         All rights of the Noteholders hereunder and the interest and all
obligations of the Borrower hereunder shall be absolute and unconditional
irrespective of:

                  (a) except as expressly provided in Section 14.9, any lack of
validity or enforceability of the Loan Documents or any other agreement or
instrument relating to the Loan Documents;

                  (b) any change in the time, manner or place of payment of, or
in any other term of, the Loan Documents, or any renewal or extension of the
Loan Documents or any other amendment or waiver of or any consent to any
departure from this Pledge Agreement or any other agreement or instrument;

                  (c) any sale, exchange, release or nonperfection of any of the
Collateral, or any release of any guarantor or any person liable in any manner
for the collection of the Notes, or any amendment or waiver of or consent to or
departure from any guaranty or the Loan Documents; or

                  (d) any other circumstance that might otherwise constitute a
defense available to, or a discharge of, the Borrower in respect of any of the
Loan Documents.

                                   ARTICLE XII
                               REMEDIES CUMULATIVE

         Each right, power and remedy of the Collateral Agent and the
Noteholders provided for in this Pledge Agreement or any other Loan Document, or
now or hereafter existing at law or in equity or by statute shall be cumulative
and concurrent and shall be in addition to every other such right, power or
remedy. The exercise or beginning of the exercise by the Collateral Agent or the
Noteholders of any one or more of the rights, powers or remedies provided for in
this Pledge Agreement or any other Loan Document or now or hereafter existing at
law or in equity or by statute or otherwise shall not preclude the simultaneous
or later exercise by the Collateral Agent of all such other rights, powers or
remedies, and no failure or delay on the part of the Collateral Agent to
exercise any such right, power or remedy shall operate as a waiver thereof.

                                                                         PAGE 29
<PAGE>   30

Unless otherwise required by the Loan Documents, no notice to or demand on the
Borrower in any case shall entitle the Borrower to any other or further notice
or demand in similar other circumstances or constitute waiver of any of the
rights of the Collateral Agent to any other or further action in any
circumstances without demand or notice. The obligations of the Borrower under
the Loan Documents are with full recourse to the Borrower and the Borrower shall
remain liable for any deficiency upon the exercise of remedies by Collateral
Agent.

                                  ARTICLE XIII
                       REFERENCES IN PLEDGE AGREEMENT AND
                              CONFIRMATION OF LIENS

         13.1 References in Pledge Agreement. All references in this Pledge
Agreement to the Notes, the Loan Documents and this Pledge Agreement shall
henceforth include references to the Notes, the Loan Documents and this Pledge
Agreement as such documents are amended, modified, extended, renewed, restated,
reinstated and increased hereby, and as such documents may, from time to time,
be further amended, modified, extended, renewed, restated, reinstated and/or
increased.

         13.2 Confirmation of Liens. The Borrower hereby modifies, confirms,
extends, renews and affirms to the Noteholders the security interests, liens and
rights of any and all security for the Notes, including without limitation, the
liens, security interests and rights set forth in the Prior Loan Documents and
the Loan Documents, to secure repayment of the Notes. The Borrower confirms that
the liens, security interests and rights of the Noteholders under the Prior Loan
Documents and the Loan Documents are valid and subsisting liens, security
interests and rights against the property described therein. The Borrower
confirms that this modification shall in no manner affect or impair any of the
liens, security interests or rights securing payment of the Notes and other
obligations as set forth in the Prior Loan Documents and that none of those
liens, security interests and rights shall in any manner be waived, the purpose
of this instrument being in part to carry forward, renew and extend all those
liens, security interests and rights. The Noteholders shall have the right to
exercise all of their rights and remedies under the Loan Documents and under
applicable law upon the occurrence of any Default or Event of Default under any
of the Loan Documents and under any and all existing or future amendment,
restatement or modification to any of the Loan Documents or the terms hereof. To
the extent not provided in this Pledge Agreement, this Pledge Agreement,
including Section 2.1, shall be deemed amended to include as an obligation,
repayment of which is secured thereby, all future advances by the Noteholders to
the Borrower whether under the Loan Documents, as they may be modified, amended,
extended, restated, reinstated, renewed and/or increased from time to time, or
under other separate documents, agreements or instruments. The parties do not
intend this Pledge Agreement to constitute a novation of any Prior Pledge
Agreement.

         13.3 Representations, Warranties, Covenants and Agreements of the
Borrower.

         The Borrower further represents, warrants and covenants and agrees with
the Noteholders as follows:

                                                                         PAGE 30
<PAGE>   31

         (a)  the information set forth in the recitals of this Pledge Agreement
are true and correct in all respects and that such recitals shall be deemed a
part of this Pledge Agreement for all purposes;

         (b)  Except to the extent set forth in the Collateral Sharing Agreement
and the Exchange Pledge Agreements, Borrower has not pledged, transferred,
conveyed, or assigned any interest in the Collateral except to the Noteholders
pursuant to the Loan Documents.

        13.4  Continued Effect.

         All terms, provisions and conditions of the Loan Documents (including
all documents executed in connection herewith) shall be enforceable and binding
in accordance with their respective terms.

        13.5  Waiver of Defaults.

         All defaults of the Collateral Agent on behalf of the Noteholders, if
any, under the Prior Loan Documents are hereby waived.

                                   ARTICLE XIV
                                    RESERVED

                                   ARTICLE XV
                                  MISCELLANEOUS

         14.1 Successors and Assigns; No Third-Party Beneficiaries. This Pledge
Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective permitted successors and assigns. Except as expressly set
forth herein and in the Collateral Sharing Agreement, this Pledge Agreement
shall not confer any rights, obligations, remedies or liabilities upon any
Person other than the parties hereto and their permitted successors and assigns.

         14.2 GOVERNING LAW. THE PARTIES HERETO ACKNOWLEDGE THAT THE
TRANSACTIONS CONTEMPLATED BY THIS PLEDGE AGREEMENT AND THE NOTES BEAR A
REASONABLE RELATION TO THE STATE OF MARYLAND IN THAT, INTER ALIA, AN INTENDED
PARTICIPANT IN THE NOTES HAS ITS PRINCIPAL PLACE OF BUSINESS IN THE STATE OF
MARYLAND, PART OF THE NEGOTIATIONS RELATING TO THE TRANSACTIONS CONTEMPLATED
HEREBY HAS OCCURRED IN THE STATE OF MARYLAND AND THE CLOSING WILL OCCUR IN SUCH
STATE. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF MARYLAND, WITHOUT REGARD TO THE PRINCIPLES OF CONFLICT
OF LAWS THEREOF.

         14.3 Notices. All notices, requests, demands, claims and other
communications under this Pledge Agreement shall be in writing (unless otherwise
specified herein) and shall be

                                                                         PAGE 31
<PAGE>   32

deemed duly given if (and then two (2) Business Days after) it is sent by
registered or certified mail, return receipt requested, postage prepaid, and
addressed to the intended recipient as set forth below:

                  If to Borrower:
                  Altiva Financial Corporation
                  Sixth Floor
                  1000 Parkwood Circle
                  Atlanta, Georgia  30339
                  Attention:  Office of the Chief Executive Officer
                  Telephone:  (770) 952-6700
                  Facsimile:  (770) 937-7576

                  With a Copy to:
                  King & Spalding
                  191 Peachtree Street
                  48th Floor
                  Atlanta, Georgia 30303
                  Attention:  Walter Driver, Esq.
                  Telephone:  (404) 572-4600
                  Facsimile:  (404) 572-5149

                  If to the Initial Noteholder:
                  Value Partners, Ltd.
                  4514 Cole Avenue
                  Suite 808
                  Dallas, Texas 75205
                  Attention:  Timothy G. Ewing
                  Telephone:  (214) 522-2100
                  Facsimile:  (214) 522-2176

                  With a copy to:
                  Bergman, Stein & Bird, L.L.P.
                  4514 Travis Street
                  Suite 300
                  Dallas, Texas 75205
                  Attention:  Jack R. Bird
                  Telephone:  (214) 528-2444
                  Facsimile:  (214) 599-0602

                  And

                  Elias, Matz, Tiernan & Herrick L.L.P.
                  734 15th Street, N.W.
                  12th Floor

                                                                         PAGE 32
<PAGE>   33

                  Washington, DC 20005
                  Attention:  Gerard L. Hawkins
                  Telephone:  (202) 347-0300
                  Facsimile:  (202) 347-2172

                  If to the Collateral Agent:

                  Haynes & Boone, L.L.P.
                  201 Main Street, Suite 2200
                  Fort Worth, Texas 76102
                  Attention:  William Greenhill
                  Telephone: (817) 347-6602
                  Facsimile: (817) 347-6650

                  And

                  United States Trust Company of New York
                  2001 Ross Avenue
                  Suite 2700
                  Dallas, Texas 75201
                  Attention:  John C. Stohlmann
                  Telephone: (214) 754-1254
                  Facsimile: (214) 754-1303

         Any party may send any notice, request, demand, claim or other
communications hereunder to the intended recipient at the address set forth
above using any other means (including personal delivery, expedited courier,
messenger service, telecopy, telex, ordinary mail, or electronic mail), but no
such notice, request, demand, claim, or other communication shall be deemed to
have been duly given unless and until it actually is received by the intended
recipient. Any party may change the address to which notices, requests, demands,
claims, and other communications hereunder are to be delivered by giving the
other party notice in the manner herein set forth.

         14.4 Amendments; Waivers. Subject to the Collateral Sharing Agreement
and except to the extent a different percentage is authorized, this Pledge
Agreement may not be amended, modified or supplemented except in writing signed
by each of the parties hereto (or the successors and assigns thereof) or the
parties constituting the necessary percentage of Noteholders authorized to take
such actions. Each party may, by written notice to the other, extend the time
for or waive the performance of any of the obligations of such other hereunder.
The waiver by any party hereto of a breach of this Pledge Agreement shall not
operate or be construed as a waiver of any other or subsequent breach. No delay,
omission or act by a party shall be deemed a waiver of such party's rights,
powers or remedies. No course of dealing between the parties hereto shall
operate a waiver of any provision hereof.

                                                                         PAGE 33
<PAGE>   34
         14.5     Payment of Expenses; Indemnity. The Borrower shall:

         (a) pay or reimburse the Noteholders and the Collateral Agent on demand
for all of its reasonable out-of-pocket costs and expenses incurred in
connection with the development, preparation and execution of any amendment,
modification or supplement to, or any waiver under, any Loan Document and any
other document prepared in connection therewith, and the consummation of the
transactions contemplated thereby, including, without limitation, the reasonable
fees and disbursements of counsel to the Collateral Agent and the Noteholders;

         (b) pay on demand all reasonable costs and expenses of the Noteholders
and the Collateral Agent, including, without limitation, the reasonable fees and
disbursements of counsel to the Noteholders and the Collateral Agent, in
connection with the occurrence or continuance of an Event of Default and the
enforcement, collection, protection or preservation (whether through
negotiation, legal proceedings or otherwise) of this Pledge Agreement or any
other Loan Document, the Collateral, and any obligation or any rights, remedy,
power or privilege of the Noteholders and the Collateral Agent hereunder or
thereunder;

         (c) pay and hold the Noteholders and Collateral Agent harmless from and
against any and all present and future stamp, excise, recording or other similar
taxes or fees payable in connection with the execution, delivery, recording and
filing of any Loan Document and hold the Noteholders harmless from and against
any and all liabilities with respect to or resulting from any delay or omission
to pay such taxes or fees; and

         (d) indemnify and hold harmless the Noteholders and Collateral Agent
and their respective directors, officers, partners, employees and agents from
and against, any and all liabilities, losses, damages, penalties, actions,
judgments, suits, claims, costs, expenses and disbursements, including, without
limitation, the reasonable fees and disbursement of counsel to the Noteholders
and Collateral Agent and such other parties, incurred by any of them in
connection with, arising out of or in any way relating to any investigation,
claim, litigation or other proceeding, pending or threatened (whether or not any
of them is designated a party thereto), in connection with, arising out of or in
any way related to this Pledge Agreement or any other Loan Document or any of
the transactions contemplated herein or therein or any use of the proceeds of
the Notes by the Borrower; provided that the Noteholders and Collateral Agent
shall not be entitled to any indemnification for any of the foregoing resulting
from their gross negligence or willful misconduct as determined by a court of
competent jurisdiction.

         If, and to the extent that, the indemnity obligations of the Borrower
hereunder may be unenforceable for any reason, the Borrower hereby agrees to
make the maximum contributions to the payment and satisfaction of each of such
indemnity obligations which is permissible under applicable law.

         14.6 Limited Liability. No recourse under any Loan Document shall be
had against, and no personal liability shall attach to, any officer, employee,
director, partner, affiliate, shareholder or agent of any party hereto, as such,
by the enforcement of any assessment or by any legal or equitable proceeding, by
virtue of any statute or otherwise in respect of any of the Loan Documents, it
being expressly agreed and understood that each Loan Document is solely a

                                                                         PAGE 34
<PAGE>   35

corporate or limited liability entity obligation of each party hereto, and that
any and all personal liability, either at common law or in equity, or by statute
or constitution, of every such officer, employee, director, partner, affiliate,
shareholder or agent for breaches by any party hereto of any obligation under
any Loan Document is hereby expressly waived as a condition of and in
consideration for the execution and delivery of this Pledge Agreement.

         14.7 Counterparts. This Pledge Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, but all of which taken
together shall constitute one and the same instrument.

         14.8 Severability; Interpretation. Any term or provision of this Pledge
Agreement that is invalid, illegal or unenforceable in any situation in any
jurisdiction shall not affect the validity, legality or enforceability of the
remaining terms and provisions hereof or the validity, legality or
enforceability of the offending term or provision in any other situation or in
any other jurisdiction.

         14.9 Usury. All agreements between Borrower and the Noteholders,
whether now existing or hereafter arising and whether written or oral, are
hereby limited so that in no contingency, whether by reason of demand or
acceleration of the Maturity Date, as that term is defined in the Notes, or
otherwise, shall the interest contracted for, charged, received, paid or agreed
to be paid to the Noteholders exceed the maximum amount permissible under the
laws of the State of Maryland (hereinafter the "Applicable Law"). If, from any
circumstance whatsoever, interest would otherwise be payable to the Noteholders
in excess of the maximum amount permissible under the Applicable Law, the
interest payable to the Noteholders shall be reduced to the maximum amount
permissible under the Applicable Law, and if from any circumstance the
Noteholders shall ever receive anything of value deemed interest by the
Applicable Law in excess of the maximum amount permissible under the Applicable
Law, an amount equal to the excessive interest shall be applied to the reduction
of the principal of the Notes and not to the payment of interest, or if such
excessive amount of interest exceeds the unpaid balance of principal of the
Notes, such excess shall be refunded to the Borrower. All interest paid or
agreed to be paid to the Noteholders shall, to the extent permitted by the
Applicable Law, be amortized, pro-rated, allocated and spread throughout the
full period (including any renewal or extension) until payment in full of the
principal so that the interest on the Notes for such full period shall not
exceed the maximum amount permissible under the Applicable Law. The Noteholders
expressly disavow any intent to contract for, charge or receive interest in an
amount which exceeds the maximum amount permissible under the Applicable Law.
This paragraph as well as a similar paragraph as set forth in the Notes shall
control all agreements between Borrower and the Noteholders.

         14.10 Time is of the Essence; No Waiver; Cumulative Remedies. Time and
exactitude of each of the terms, obligations, covenants and conditions of this
Pledge Agreement are hereby declared to be of the essence.

         14.11 Binding Effect. This Pledge Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective heirs,
executors, administrators, successors and

                                                                         PAGE 35
<PAGE>   36

assigns. Subject to Article VI, a Noteholder may assign its interest in this
Pledge Agreement, and if assigned, the assignee shall be entitled, upon
notifying the Borrower, to the payment and performance of the obligations
arising under the Loan Documents and agreements of the Borrower hereunder and to
all of the rights and remedies of such Noteholder hereunder, and the Borrower
will assert no claims or defenses the Borrower may have against the Noteholders
against the assignee. The gender and number used in this Pledge Agreement are
used for reference term only and shall apply with the same effect whether the
parties are masculine, feminine, neuter, singular or plural.

         14.12 Multiple Counterparts. This Pledge Agreement may be executed in
separate or multiple counterparts by the parties, and all of such counterparts
shall be considered as one and the same instrument notwithstanding the fact that
various counterparts are signed by only one or more of the parties, and all of
such Pledge Agreements shall be deemed but one and the same Pledge Agreement.

         14.13 Headings. The captions and Section headings in this Pledge
Agreement are for convenience of reference only, and shall not limit or
otherwise affect the meaning or interpretation of any provision hereof.

         14.14 Secured Party. This Pledge Agreement shall constitute a security
agreement, and the Noteholders shall have all of the rights in the Collateral of
a secured party, including under Articles 8 and 9 of the UCC.

         14.15 Chief Executive Office; Records. The Chief Executive Office of
the Borrower is located at the address specified in the introduction. The
Borrower's state of incorporation is Delaware. The Borrower will not move its
Chief Executive Office or change its state of incorporation except to such new
location as such Borrower may establish in accordance with the last sentence in
this Section 14.15. The Borrower shall not establish a new location for such
office or change it state of incorporation until (i) it shall have given to the
Noteholders and the Collateral Agent not less than 30 days' prior written notice
of its intention so to do, clearly describing such new location and providing
such other information in connection therewith as the Noteholders and the
Collateral Agent may reasonably request and (ii) with respect to such new
location or state of incorporation, it shall have taken all action satisfactory
to the Noteholders and the Collateral Agent to maintain the security interest of
the Noteholders in the Collateral intended to be granted hereby at all times
fully perfected and in full force and effect.

         14.16 Beneficial Owners. References herein to registered holders of
Notes and Exchange Notes shall be deemed to include beneficial owners of Notes
and Exchange Notes to the extent provided in the Notes and in the Indenture
relating to the Exchange Notes, respectively.

         14.17 Unless and until the Exchange, as defined in the Exchange
Agreement, has been consummated with respect to not less than 92% aggregate
principal amount of Old Notes (as defined in the Exchange Agreement), (a) all
rights granted the Collateral Agent, including the right to possess the
Collateral and to enforce remedies, belong solely to the Noteholders and (b)

                                                                         PAGE 36
<PAGE>   37

all references to the holders of Exchange Notes shall be inapplicable and all
rights granted such holders shall belong to the Noteholders.

                                                                     PAGE 37
<PAGE>   38

         IN WITNESS WHEREOF, the parties hereto have caused this Pledge
Agreement to be duly executed as of the date first above written.

                        VALUE PARTNERS, LTD.

                        By:  EWING & PARTNERS,
                             General Partner

                        By: /s/ TIMOTHY G. EWING
                           ----------------------------------------
                           Name: Timothy G. Ewing
                           Title:   Managing Partner

                           Address:
                                   4514 Cole Avenue, Suite 808
                                   Dallas, Texas 75205

                       ALTIVA FINANCIAL CORPORATION

                        By: /s/ EDWARD B. MEYERCORD
                            ----------------------------------------
                           Name: Edward. B Meyercord
                           Title: Chief Executive Officer

                           Address:
                                   1000 Parkwood Circle, Sixth Floor
                                   Atlanta, Georgia 30339

                                                                         PAGE 38

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