Document:

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                                                                   EXHIBIT 10.16

                           WABASH NATIONAL CORPORATION
                           1000 SAGAMORE PARKWAY SOUTH
                            LAFAYETTE, INDIANA 47905

                                                        As of September 29, 2000

The Prudential Insurance Company
   of America ("PRUDENTIAL")
Pruco Life Insurance Company ("PRUCO")
Each Prudential Affiliate (as hereinafter
defined) which becomes bound by certain
provisions of this Agreement as hereinafter
provided (together with Prudential and Pruco, the "PURCHASERS")

c/o Prudential Capital Group
Two Prudential Plaza
Suite 5600
Chicago, Illinois  60601

Ladies and Gentlemen:

         The undersigned, Wabash National Corporation, a Delaware corporation
(herein called the "COMPANY"), hereby agrees with you as set forth below.
Reference is made to paragraph 10 hereof for definitions of capitalized terms
used herein and not otherwise defined herein.

         1.        AUTHORIZATION OF ISSUE OF NOTES.

         1A.       AUTHORIZATION OF ISSUE OF SERIES I NOTES. The Company will
authorize the issue of its senior promissory notes (the "SERIES I NOTES") in the
aggregate principal amount of $50,000,000, to be dated the date of issue
thereof, to mature September 29, 2007, to bear interest on the unpaid balance
thereof from the date thereof until the principal thereof shall have become due
and payable at the rate of 8.04% per annum and on overdue principal,
Yield-Maintenance Amount and interest at the rate specified therein, and to be
substantially in the form of Exhibit A-1 attached hereto. The terms "SERIES I
NOTE" and "SERIES I NOTES" as used herein shall include each Series I Note
delivered pursuant to any provision of this Agreement and each Series I Note
delivered in substitution or exchange for any such Series I Note pursuant to any
such provision.

         1B.       AUTHORIZATION OF ISSUE OF SHELF NOTES. The Company will
authorize the issue of its additional senior promissory notes (the "SHELF
NOTES") in the aggregate principal

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amount of $25,000,000, to be dated the date of issue thereof, to mature, in the
case of each Shelf Note so issued, no more than 12 years after the date of
original issuance thereof, to have an average life, in the case of each Shelf
Note so issued, of no more than 10 years after the date of original issuance
thereof, to bear interest on the unpaid balance thereof from the date thereof at
the rate per annum, and to have such other particular terms, as shall be set
forth, in the case of each Shelf Note so issued, in the Confirmation of
Acceptance with respect to such Shelf Note delivered pursuant to paragraph
2B(5), and to be substantially in the form of Exhibit A-2 attached hereto. The
terms "SHELF NOTE" and "SHELF NOTES" as used herein shall include each Shelf
Note delivered pursuant to any provision of this Agreement and each Shelf Note
delivered in substitution or exchange for any such Shelf Note pursuant to any
such provision. The terms "NOTE" and "NOTES" as used herein shall include each
Series I Note and each Shelf Note delivered pursuant to any provision of this
Agreement and each Note delivered in substitution or exchange for any such Note
pursuant to any such provision. Notes which have (i) the same final maturity,
(ii) the same principal prepayment dates, (iii) the same principal prepayment
amounts (as a percentage of the original principal amount of each Note), (iv)
the same interest rate, (v) the same interest payment periods and (vi) the same
date of issuance (which, in the case of a Note issued in exchange for another
Note, shall be deemed for these purposes the date on which such Note's ultimate
predecessor Note was issued), are herein called a "SERIES" of Notes.

         2.        PURCHASE AND SALE OF NOTES.

         2A.       PURCHASE AND SALE OF SERIES I NOTES. The Company hereby
agrees to sell to the Purchasers and, subject to the terms and conditions herein
set forth, the Purchasers agree to purchase from the Company $50,000,000
aggregate principal amount of Series I Notes at 100% of such aggregate principal
amount. On September 29, 2000 or any other date prior to September 29, 2000 upon
which the Company and Prudential may agree (herein called the "SERIES I CLOSING
DAY"), the Company will deliver to the Purchasers at the offices of Prudential
Capital Group, Two Prudential Plaza, Suite 5600, Chicago, Illinois 60601, one or
more Series I Notes registered in its name, evidencing the aggregate principal
amount of Series I Notes to be purchased by the Purchasers and in the
denomination or denominations specified with respect to each Purchaser in the
Purchaser Schedule attached hereto, against payment of the purchase price
thereof by transfer of immediately available funds for credit to the Company's
account # 56-90021 at Bank One, Chicago, Illinois, ABA Routing Number
071-000-013.

         2B.       PURCHASE AND SALE OF SHELF NOTES.

         2B(1).    FACILITY. Prudential is willing to consider, in its sole
discretion and within limits which may be authorized for purchase by Prudential
from time to time, the purchase of Shelf Notes pursuant to this Agreement. The
willingness of Prudential to consider such purchase of Shelf Notes is herein
called the "FACILITY". At any time, the aggregate principal amount of Shelf
Notes stated in paragraph 1B, minus the aggregate principal amount of Shelf
Notes purchased and sold pursuant to this Agreement prior to such time, minus
the aggregate principal amount of Accepted Notes (as hereinafter defined) which
have not yet been purchased and sold hereunder prior to such time, is herein
called the "AVAILABLE FACILITY AMOUNT" at such time. NOTWITHSTANDING

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THE WILLINGNESS OF PRUDENTIAL TO CONSIDER PURCHASES OF SHELF NOTES, THIS
AGREEMENT IS ENTERED INTO ON THE EXPRESS UNDERSTANDING THAT NEITHER PRUDENTIAL
NOR ANY PRUDENTIAL AFFILIATE SHALL BE OBLIGATED TO MAKE OR ACCEPT OFFERS TO
PURCHASE SHELF NOTES, OR TO QUOTE RATES, SPREADS OR OTHER TERMS WITH RESPECT TO
SPECIFIC PURCHASES OF SHELF NOTES, AND THE FACILITY SHALL IN NO WAY BE CONSTRUED
AS A COMMITMENT BY PRUDENTIAL OR ANY PRUDENTIAL AFFILIATE.

         2B(2).    ISSUANCE PERIOD. Shelf Notes may be issued and sold pursuant
to this Agreement until the earlier of (i) the third anniversary of the date of
this Agreement (or if such anniversary date is not a Business Day, the Business
Day next preceding such anniversary) and (ii) the thirtieth day after Prudential
shall have given to the Company, or the Company shall have given to Prudential,
a written notice stating that it elects to terminate the issuance and sale of
Shelf Notes pursuant to this Agreement (or if such thirtieth day is not a
Business Day, the Business Day next preceding such thirtieth day). The period
during which Shelf Notes may be issued and sold pursuant to this Agreement is
herein called the "ISSUANCE PERIOD".

         2B(3).    REQUEST FOR PURCHASE. The Company may from time to time
during the Issuance Period make requests for purchases of Shelf Notes (each such
request being herein called a "REQUEST FOR PURCHASE"). Each Request for Purchase
shall be made to Prudential by telecopier or overnight delivery service, and
shall (i) specify the aggregate principal amount of Shelf Notes covered thereby,
which shall not be less than $5,000,000 and not be greater than the Available
Facility Amount at the time such Request for Purchase is made, (ii) specify the
principal amounts, final maturities, principal prepayment dates and amounts and
interest payment periods (quarterly or semi-annual in arrears) of the Shelf
Notes covered thereby, (iii) specify the use of proceeds of such Shelf Notes,
(iv) specify the proposed day for the closing of the purchase and sale of such
Shelf Notes, which shall be a Business Day during the Issuance Period not less
than 10 days and not more than 25 days after the making of such Request for
Purchase, (v) specify the number of the account and the name and address of the
depository institution to which the purchase prices of such Shelf Notes are to
be transferred on the Closing Day for such purchase and sale, (vi) certify that
the representations and warranties contained in paragraph 8 are true on and as
of the date of such Request for Purchase and that there exists on the date of
such Request for Purchase no Event of Default or Default, (vii) specify whether
the fee to be due pursuant to paragraph 2B(8)(ii) should be included in the rate
quotes Prudential may provide pursuant to paragraph 2B(4) or will be paid
separately by the Company on the Closing Day for such purchase and sale, and
(viii) be substantially in the form of Exhibit B attached hereto. Each Request
for Purchase shall be in writing and shall be deemed made when received by
Prudential.

         2B(4).    RATE QUOTES. Not later than five Business Days after the
Company shall have given Prudential a Request for Purchase pursuant to paragraph
2B(3), Prudential may, but shall be under no obligation to, provide to the
Company by telephone or telecopier, in each case between 9:30 A.M. and 1:30 P.M.
New York City local time (or such later time as Prudential may elect) interest
rate quotes for the several principal amounts, maturities, principal prepayment

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schedules, and interest payment periods of Shelf Notes specified in such Request
for Purchase. Each quote shall represent the interest rate per annum payable on
the outstanding principal balance of such Shelf Notes at which Prudential or a
Prudential Affiliate would be willing to purchase such Shelf Notes at 100% of
the principal amount thereof.

         2B(5).    ACCEPTANCE. Within the Acceptance Window, the Company may,
subject to paragraph 2B(6), elect to accept such interest rate quotes as to not
less than $5,000,000 aggregate principal amount of the Shelf Notes specified in
the related Request for Purchase. Such election shall be made by an Authorized
Officer of the Company notifying Prudential by telephone or telecopier within
the Acceptance Window that the Company elects to accept such interest rate
quotes, specifying the Shelf Notes (each such Shelf Note being herein called an
"ACCEPTED NOTE") as to which such acceptance (herein called an "ACCEPTANCE")
relates. The day the Company notifies Prudential of an Acceptance with respect
to any Accepted Notes is herein called the "ACCEPTANCE DAY" for such Accepted
Notes. Any interest rate quotes as to which Prudential does not receive an
Acceptance within the Acceptance Window shall expire, and no purchase or sale of
Shelf Notes hereunder shall be made based on such expired interest rate quotes.
Subject to paragraph 2B(6) and the other terms and conditions hereof, the
Company agrees to sell to Prudential or a Prudential Affiliate, and Prudential
agrees to purchase, or to cause the purchase by a Prudential Affiliate of, the
Accepted Notes at 100% of the principal amount of such Notes. As soon as
practicable following the Acceptance Day, the Company, Prudential and each
Prudential Affiliate which is to purchase any such Accepted Notes will execute a
confirmation of such Acceptance substantially in the form of Exhibit C attached
hereto (herein called a "CONFIRMATION OF ACCEPTANCE"). If the Company should
fail to execute and return to Prudential within three Business Days following
receipt thereof a Confirmation of Acceptance with respect to any Accepted Notes,
Prudential may at its election at any time prior to its receipt thereof cancel
the closing with respect to such Accepted Notes by so notifying the Company in
writing.

         2B(6).    MARKET DISRUPTION. Notwithstanding the provisions of
paragraph 2B(5), if Prudential shall have provided interest rate quotes pursuant
to paragraph 2B(4) and thereafter prior to the time an Acceptance with respect
to such quotes shall have been notified to Prudential in accordance with
paragraph 2B(5) the domestic market for U.S. Treasury securities or derivatives
shall have closed or there shall have occurred a general suspension, material
limitation, or significant disruption of trading in securities generally on the
New York Stock Exchange or in the domestic market for U.S. Treasury securities
or derivatives, then such interest rate quotes shall expire, and no purchase or
sale of Shelf Notes hereunder shall be made based on such expired interest rate
quotes. If the Company thereafter notifies Prudential of the Acceptance of any
such interest rate quotes, such Acceptance shall be ineffective for all purposes
of this Agreement, and Prudential shall promptly notify the Company that the
provisions of this paragraph 2B(6) are applicable with respect to such
Acceptance.

         2B(7).   FACILITY CLOSINGS. Not later than 11:30 A.M. (New York City
local time) on the Closing Day for any Accepted Notes, the Company will deliver
to each Purchaser listed in the Confirmation of Acceptance relating thereto at
the offices of the Prudential Capital Group, Two Prudential Plaza, Suite 5600,
Chicago, Illinois 60601, Attention: Law Department, the Accepted

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Notes to be purchased by such Purchaser in the form of one or more Notes in
authorized denominations as such Purchaser may request for each Series of
Accepted Notes to be purchased on the Closing Day, dated the Closing Day and
registered in such Purchaser's name (or in the name of its nominee), against
payment of the purchase price thereof by transfer of immediately available funds
for credit to the Company's account specified in the Request for Purchase of
such Notes. If the Company fails to tender to any Purchaser the Accepted Notes
to be purchased by such Purchaser on the scheduled Closing Day for such Accepted
Notes as provided above in this paragraph 2B(7), or any of the conditions
specified in paragraph 3 shall not have been fulfilled by the time required on
such scheduled Closing Day, the Company shall, prior to 1:00 P.M., New York City
local time, on such scheduled Closing Day notify Prudential (which notification
shall be deemed received by each Purchaser) in writing whether (i) such closing
is to be rescheduled (such rescheduled date to be a Business Day during the
Issuance Period not less than one Business Day and not more than 10 Business
Days after such scheduled Closing Day (the "RESCHEDULED CLOSING DAY")) and
certify to Prudential (which certification shall be for the benefit of each
Purchaser) that the Company reasonably believes that it will be able to comply
with the conditions set forth in paragraph 3 on such Rescheduled Closing Day and
that the Company will pay the Delayed Delivery Fee in accordance with paragraph
2B(8)(iii) or (ii) such closing is to be canceled. In the event that the Company
shall fail to give such notice referred to in the preceding sentence, Prudential
(on behalf of each Purchaser) may at its election, at any time after 1:00 P.M.,
New York City local time, on such scheduled Closing Day, notify the Company in
writing that such closing is to be canceled. Notwithstanding anything to the
contrary appearing in this Agreement, the Company may not elect to reschedule a
closing with respect to any given Accepted Notes on more than one occasion,
unless Prudential shall have otherwise consented in writing.

         2B(8).      FEES.

         2B(8)(i).   STRUCTURING FEE. At the time of the execution and delivery
of this Agreement by the Company and Prudential, the Company will pay to
Prudential in immediately available funds a fee (herein called the "STRUCTURING
FEE") in the amount of $25,000.00.

         2B(8)(ii).  ISSUANCE FEE. The Company will pay to Prudential in
immediately available funds a fee (herein called the "ISSUANCE FEE") on each
Closing Day in an amount equal to 0.10% of the aggregate principal amount of
Notes sold on such Closing Day, unless the Company shall have requested pursuant
to the applicable Request for Purchase that such fee be included in the rate
quotes Prudential may provide pursuant to paragraph 2B(4). Notwithstanding the
foregoing, the amount of the Structuring Fee shall be credited to reduce up to
$25,000 in any Issuance Fees payable with respect to any Shelf Notes that are
issued prior to December 31, 2000.

         2B(8)(iii). DELAYED DELIVERY FEE. If the closing of the purchase and
sale of any Accepted Note is delayed for any reason beyond the original Closing
Day for such Accepted Note, the Company will pay to Prudential (a) on the
Cancellation Date or actual closing date of such purchase and sale and (b) if
earlier, the next Business Day following 90 days after the Acceptance Day for
such Accepted Note and on each Business Day following 90 days after the prior
payment hereunder, a fee (herein called the "DELAYED DELIVERY FEE") calculated
as follows:

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                           (BEY - MMY) X DTS/360 X PA

where "BEY" means Bond Equivalent Yield, i.e., the bond equivalent yield per
annum of such Accepted Note; "MMY" means Money Market Yield, i.e., the yield per
annum on a commercial paper investment of the highest quality selected by
Prudential on the date Prudential receives notice of the delay in the closing
for such Accepted Note having a maturity date or dates the same as, or closest
to, the Rescheduled Closing Day or Rescheduled Closing Days (a new alternative
investment being selected by Prudential each time such closing is delayed);
"DTS" means Days to Settlement, i.e., the number of actual days elapsed from and
including the original Closing Day with respect to such Accepted Note (in the
case of the first such payment with respect to such Accepted Note) or from and
including the date of the next preceding payment (in the case of any subsequent
delayed delivery fee payment with respect to such Accepted Note) to but
excluding the date of such payment; and "PA" means Principal Amount, i.e., the
principal amount of the Accepted Note for which such calculation is being made.
In no case shall the Delayed Delivery Fee be less than zero. Nothing contained
herein shall obligate any Purchaser to purchase any Accepted Note on any day
other than the Closing Day for such Accepted Note, as the same may be
rescheduled from time to time in compliance with paragraph 2B(7).

         2B(8)(iv). CANCELLATION FEE. If the Company at any time notifies
Prudential in writing that the Company is canceling the closing of the purchase
and sale of any Accepted Note, or if Prudential notifies the Company in writing
under the circumstances set forth in the last sentence of paragraph 2B(5) or the
penultimate sentence of paragraph 2B(7) that the closing of the purchase and
sale of such Accepted Note is to be canceled, or if the closing of the purchase
and sale of such Accepted Note is not consummated on or prior to the last day of
the Issuance Period (the date of any such notification, or the last day of the
Issuance Period, as the case may be, being herein called the "CANCELLATION
DATE"), the Company will pay to Prudential in immediately available funds an
amount (the "CANCELLATION FEE") calculated as follows:

                                     PI X PA

where "PI" means Price Increase, i.e., the quotient (expressed in decimals)
obtained by dividing (a) the excess of the ask price (as determined by
Prudential) of the Hedge Treasury Note(s) on the Cancellation Date over the bid
price (as determined by Prudential) of the Hedge Treasury Notes(s) on the
Acceptance Day for such Accepted Note by (b) such bid price; and "PA" has the
meaning ascribed to it in paragraph 2B(8)(iii). The foregoing bid and ask prices
shall be as reported by Telerate Systems, Inc. (or, if such data for any reason
ceases to be available through Telerate Systems, Inc., any publicly available
source of similar market data). Each price shall be based on a U.S. Treasury
security having a par value of $100.00 and shall be rounded to the second
decimal place. In no case shall the Cancellation Fee be less than zero.

         3.         CONDITIONS OF CLOSING. The obligation of any Purchaser to
purchase and pay for any Notes is subject to the satisfaction, on or before the
Closing Day for such Notes, of the following conditions:

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         3A.        CERTAIN DOCUMENTS. Such Purchaser shall have received the
following, each dated the date of the applicable Closing Day:

                    (i)      This Agreement;

                    (ii)     The Note(s) to be purchased by such Purchaser;

                    (iii) A favorable opinion of Gambs Mucker & Bauman, special
         counsel to the Company (or such other counsel designated by the Company
         and acceptable to the Purchaser(s)) satisfactory to such Purchaser and
         substantially in the form of Exhibit D-1 (in the case of the Series I
         Notes) or D-2 (in the case of any Shelf Notes) attached hereto and as
         to such other matters as such Purchaser may reasonably request. The
         Company hereby directs each such counsel to deliver such opinion,
         agrees that the issuance and sale of any Notes will constitute a
         reconfirmation of such direction, and understands and agrees that each
         Purchaser receiving such an opinion will and is hereby authorized to
         rely on such opinion;

                    (iv) a Secretary's Certificate signed by the Secretary or an
         Assistant Secretary and one other officer of the Company certifying,
         among other things, (A) as to the names, titles and true signatures of
         the officers of the Company authorized to sign this Agreement, the
         Notes and the other documents to be delivered in connection with this
         Agreement, (B) that attached as Exhibit A thereto is a true, accurate
         and complete copy of the Articles of Incorporation of the Company,
         certified by the Secretary of State of Delaware as of a date not more
         than ten Business Days from the Closing Day, (C) that attached as
         Exhibit B thereto is a true, accurate and complete copy of the
         Company's Bylaws which were duly adopted and are presently in effect
         and have been in effect immediately prior to and at all times since the
         adoption of the resolutions referred to in clause (D) below, (D) that
         attached as Exhibit C thereto is a true, accurate and complete copy of
         the resolutions of the Company's Board of Directors (authorizing the
         issuance and sale of the Notes and the execution, delivery and
         performance of this Agreement) duly adopted by written action or at a
         meeting of the Company's Board of Directors, and such resolutions have
         not been rescinded, amended or modified and (E) that attached as
         Exhibit D thereto is a good standing certificate for the Company from
         the Secretary of State of Delaware;

                    (v) a Secretary's Certificate signed by the Secretary or an
         Assistant Secretary and one other officer of each Guarantor certifying
         that attached thereto is a true, accurate and complete copy of the
         resolutions of such Guarantor's Board of Directors (authorizing the
         execution, delivery and performance of the Series I Guaranty) duly
         adopted by consent in lieu of a meeting by such Guarantor's Board of
         Directors, and such resolutions have not been rescinded, amended or
         modified.

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                    (vi) an Officer's Certificate certifying that (A) the
         representations and warranties contained in paragraph 8 shall be true
         on and as of the Closing Day, except to the extent of changes caused by
         the transactions herein contemplated; and (B) on the date of closing no
         Event of Default or Default exists;

                    (vii) additional documents or certificates with respect to
         legal matters or corporate or other proceedings related to the
         transactions contemplated hereby as may be reasonably requested by such
         Purchaser.

         3B.        OPINION OF PURCHASER'S SPECIAL COUNSEL. Such Purchaser shall
have received from Kira E. Druyan, Assistant General Counsel of Prudential or
such other counsel who is acting as special counsel for it in connection with
this transaction, a favorable opinion satisfactory to such Purchaser as to such
matters incident to the matters herein contemplated as it may reasonably
request.

         3C.        REPRESENTATIONS AND WARRANTIES; NO DEFAULT. The
representations and warranties contained in paragraph 8 shall be true on and as
of such Closing Day, except to the extent of changes caused by the transactions
herein contemplated; there shall exist on such Closing Day no Event of Default
or Default; and the Company shall have delivered to such Purchaser an Officer's
Certificate, dated such Closing Day, to both such effects.

         3D.        PURCHASE PERMITTED BY APPLICABLE LAWS. The purchase of and
payment for the Notes to be purchased by such Purchaser on the terms and
conditions herein provided (including the use of the proceeds of such Notes by
the Company) shall not violate any applicable law or governmental regulation
(including, without limitation, Section 5 of the Securities Act or Regulation U,
T or X of the Board of Governors of the Federal Reserve System) and shall not
subject such Purchaser to any tax, penalty, liability or other onerous condition
under or pursuant to any applicable law or governmental regulation, and such
Purchaser shall have received such certificates or other evidence as it may
request to establish compliance with this condition.

         3E.        PAYMENT OF FEES. The Company shall have paid to Prudential
any fees due it pursuant to or in connection with this Agreement, including any
Structuring Fee due pursuant to paragraph 2B(8)(i), any Issuance Fee due
pursuant to paragraph 2B(8)(ii) and any Delayed Delivery Fee due pursuant to
paragraph 2B(8)(iii).

         3F.        SUBSIDIARY GUARANTY. Such Purchaser shall have received a
Guaranty in the form of Exhibit E hereto (the "SERIES I GUARANTY") duly executed
by the Guarantors and the Company.

         3G.        INTERCREDITOR AMENDMENT. Bank One, Indiana, N.A., as Agent
for the lenders under the Credit Agreement, and the Noteholders shall, prior to
December 31, 2000, have entered into, executed and delivered an amendment to the
Intercreditor Agreement, in a form reasonably satisfactory to the Purchasers
(the "INTERCREDITOR AMENDMENT"), which amendment shall provide for the equal and
ratable sharing of any payments made pursuant to the Series I

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Guaranty, the Series I Guaranty, the Guarantee by the Guarantors with respect to
the Series B-H Notes and the Revolver Guaranty.

         4.         PREPAYMENTS. The Series I Notes and any Shelf Notes shall be
subject to required prepayment as and to the extent provided in paragraphs 4A
and 4B, respectively. The Series I Notes and any Shelf Notes shall also be
subject to prepayment under the circumstances set forth in paragraphs 4C and 4F.
Any prepayment made by the Company pursuant to any other provision of this
paragraph 4 shall not reduce or otherwise affect its obligation to make any
required prepayment as specified in paragraph 4A or 4B.

         4A.        REQUIRED PREPAYMENTS OF SERIES I NOTES. Until the Series I
Notes shall be paid in full, the Company shall apply to the prepayment of the
Series I Notes, without Yield-Maintenance Amount, the sum of $25,000,000 on
September 29, 2005 and such principal amounts of the Series I Notes, together
with interest thereon to the payment dates, shall become due on such payment
dates. The remaining unpaid principal amount of the Series I Notes, together
with any accrued and unpaid interest, shall become due on the maturity date of
the Series I Notes.

         4B.        REQUIRED PREPAYMENTS OF SHELF NOTES. Each Series of Shelf
Notes shall be subject to required prepayments, if any, set forth in the Notes
of such Series.

         4C.        OPTIONAL PREPAYMENT WITH YIELD-MAINTENANCE AMOUNT. The Notes
of each Series shall be subject to prepayment, in whole at any time or from time
to time in part (in integral multiples of $500,000 and in a minimum amount of
$1,000,000), at the option of the Company, at 100% of the principal amount so
prepaid plus interest thereon to the prepayment date and the Yield-Maintenance
Amount, if any, with respect to each such Note. Any partial prepayment of a
Series of the Notes pursuant to this paragraph 4C shall be applied in
satisfaction of required payments of principal in inverse order of their
scheduled due dates.

         4D.        NOTICE OF OPTIONAL PREPAYMENT. The Company shall give the
holder of each Note of a Series to be prepaid pursuant to paragraph 4C
irrevocable written notice of such prepayment not less than 10 Business Days
prior to the prepayment date, specifying such prepayment date, the aggregate
principal amount of the Notes of such Series to be prepaid on such date, the
principal amount of the Notes of such Series held by such holder to be prepaid
on that date and that such prepayment is to be made pursuant to paragraph 4C.
Notice of prepayment having been given as aforesaid, the principal amount of the
Notes specified in such notice, together with interest thereon to the prepayment
date and together with the Yield-Maintenance Amount, if any, herein provided,
shall become due and payable on such prepayment date. The Company shall, on or
before the day on which it gives written notice of any prepayment pursuant to
paragraph 4C, give telephonic notice of the principal amount of the Notes to be
prepaid and the prepayment date to each Significant Holder which shall have
designated a recipient for such notices in the Purchaser Schedule attached
hereto or the applicable Confirmation of Acceptance or by notice in writing to
the Company.

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         4E.        APPLICATION OF PREPAYMENTS. In the case of each prepayment
of less than the entire unpaid principal amount of all outstanding Notes of any
Series pursuant to paragraphs 4A, 4B or 4C, the amount to be prepaid shall be
applied pro rata to all outstanding Notes of such Series (including, for the
purpose of this paragraph 4E only, all Notes prepaid or otherwise retired or
purchased or otherwise acquired by the Company or any of its Subsidiaries or
Affiliates other than by prepayment pursuant to paragraph 4A, 4B or 4C)
according to the respective unpaid principal amounts thereof.

          4F.       CHANGE IN CONTROL PREPAYMENT.

                    (i) NOTICE OF CHANGE IN CONTROL OR CONTROL EVENT. The
         Company will, promptly after the occurrence of any Change in Control or
         Control Event, but in any event within two Business Days thereafter,
         give written notice of such Change in Control or Control Event to each
         holder of Notes. In the case that a Change in Control has occurred,
         such notice shall contain and constitute an offer to prepay Notes as
         described in subparagraph (ii) of this paragraph 4F and shall be
         accompanied by the certificate described in subparagraph (vi) of this
         paragraph 4F.

                    (ii) OFFER TO PREPAY NOTES. The offer to prepay Notes
         contemplated by subparagraph (i) of this paragraph 4F shall be an offer
         to prepay, in accordance with and subject to this paragraph 4F, all,
         but not less than all, the Notes held by each holder (in this case
         only, "holder" in respect of any Note registered in the name of a
         nominee for a disclosed beneficial owner shall mean such beneficial
         owner) on the later of a date certain, set forth in such offer, which
         shall not be less than 30 days nor more than 60 days after the date of
         such offer (the "PROPOSED PREPAYMENT DATE") or, if such prepayment date
         is extended to a later date pursuant to subparagraph (v)(b) of this
         paragraph 4F, such later date.

                    (iii) ACCEPTANCE; REJECTION. A holder of Notes may accept
         the offer to prepay made pursuant to this paragraph 4F by causing a
         notice of such acceptance to be delivered to the Company at least 7
         days prior to the Proposed Prepayment Date. A failure by a holder of
         Notes to respond to an offer to prepay made pursuant to this paragraph
         4F shall, except as otherwise provided in subparagraph (v) of this
         paragraph 4F, be deemed to constitute a rejection of such offer by such
         holder. The Company will, immediately after receiving a notice of
         acceptance pursuant to this subparagraph (iii) from any holder of
         Notes, given written notice thereof to each other holder of Notes (the
         date of the first such notice by the Company being called the
         "ACCEPTANCE NOTICE DATE")

                    (iv) PREPAYMENT. Prepayment of the Notes to be prepaid
         pursuant to this paragraph 4F shall be at 100% of the principal amount
         of such Notes, plus the Yield-Maintenance Amount determined for the
         date of prepayment with respect to such principal amount, together with
         interest on such Notes accrued to the date of prepayment. The
         prepayment shall be made on the later of the Proposed Prepayment Pate
         or, if such

                                       10
<PAGE>   11

         prepayment date is extended to a later date pursuant to subparagraph
         (v) (b) of this paragraph 4F, such later date.

                    (v) RELINQUISHMENT OF RIGHTS. Any holder of Notes (a
         "RELINQUISHING HOLDER") may, by notice to the company invoking the
         provisions of this subparagraph (v), irrevocably relinquish, for itself
         only but not for any subsequent holder of such holder's Notes, the
         right to have its Notes prepaid pursuant to this paragraph 4F unless
         any other holder of any Notes accepts an offer to prepay Notes pursuant
         to subparagraph (iii) of this paragraph 4F. In the event that there is
         one or more Relinquishing Holders at any time and any other holder of
         any Notes accepts an offer to prepay Notes pursuant to subparagraph
         (iii) of this paragraph 4F, then (a) any such Relinquishing Holder may
         accept the offer to prepay made pursuant to this paragraph 4F by
         causing a notice of such acceptance to be delivered to the Company on
         or before the 15th day after the Acceptance Notice Date, and (b) the
         date for the prepayment of the Notes to be prepaid pursuant to this
         paragraph 4F shall be extended to the 20th day after the Acceptance
         Notice Date.

                    (vi) OFFICER'S CERTIFICATE. Each offer to prepay the Notes
         pursuant to this paragraph 4F shall be accompanied by a certificate,
         executed by a Senior Financial Officer of the Company and dated the
         date of such offer, specifying: (a) the Proposed Prepayment Date; (b)
         that such offer is made pursuant to this paragraph 4F; (c) the
         principal amount of each Note offered to be prepaid; (d) the estimated
         Yield-Maintenance Amount due in connection with such prepayment
         (calculated as if the date of such notice were the date of the
         prepayment), setting forth the details of such computation; (e) the
         interest that would be due on each Note offered to be prepaid, accrued
         to the Proposed Prepayment Date; (f) that the conditions of this
         paragraph 4F have been fulfilled; and (g) in reasonable detail, the
         nature and date of the Change in Control or Control Event.

         4G.        NO ACQUISITION OF NOTES. The Company shall not, and shall
not permit any of its Subsidiaries or Affiliates to, prepay or otherwise retire
in whole or in part prior to their stated final maturity (other than by
prepayment pursuant to paragraphs 4A, 4B, 4C or 4F, or upon acceleration of such
final maturity pursuant to paragraph 7A), or purchase or otherwise acquire,
directly or indirectly, Notes held by any holder. Any notes so prepaid or
otherwise retired or purchased or otherwise acquired by the Company or any of
its Subsidiaries or Affiliates shall not be deemed to be outstanding for any
purpose under this Agreement, except as provided in paragraph 4E.

         5.         AFFIRMATIVE COVENANTS. During the Issuance Period and so
long thereafter as any Note is outstanding and unpaid, the Company covenants as
follows:

         5A.        FINANCIAL STATEMENTS; NOTICE OF DEFAULTS. The Company
covenants that it will deliver to each Significant Holder in triplicate:

                    (i) as soon as practicable and in any event within 45 days
         after the end of each quarterly period (other than the last quarterly
         period) in each fiscal year

                                       11
<PAGE>   12

         consolidating and consolidated statements of income, and cash flows and
         a consolidated statement of shareholders' equity of the Company and its
         Subsidiaries for the period from the beginning of the current fiscal
         year to the end of such quarterly period, and a consolidating and
         consolidated balance sheet of the Company and its Subsidiaries as at
         the end of such quarterly period, setting forth in each case in
         comparative form figures for the corresponding period in the preceding
         fiscal year, all in reasonable detail and certified by an authorized
         financial officer of the Company, subject to changes resulting from
         year-end adjustments; provided, however, that delivery pursuant to
         clause (iii) below of copies of the Quarterly Report on From 10-Q of
         the Company for such quarterly period filed with the Securities and
         Exchange Commission shall be deemed to satisfy the requirements of this
         clause (i) with respect to consolidated statements;

                    (ii) as soon as practicable and in any event within 90 days
         after the end of each fiscal year, consolidating and consolidated
         statements of income and cash flows and a consolidated statement of
         shareholders' equity of the Company and its Subsidiaries for such year,
         and a consolidating and consolidated balance sheet of the Company and
         its Subsidiaries as at the end of such year, setting forth in each case
         in comparative form corresponding consolidated figures from the
         preceding annual audit, all in reasonable detail and satisfactory in
         form to the Required Holder(s) and, as to the consolidated statements,
         reported on by independent public accountants of recognized national
         standing selected by the Company whose report shall be without
         limitation as to scope of the audit and satisfactory in substance to
         the Required Holder(s) and, as to the consolidating statements,
         certified by an authorized financial officer of the Company provided,
         however, that delivery pursuant to clause (iii) below of copies of the
         Annual Report on Form 10-K of the Company for such fiscal year filed
         with the Securities and Exchange Commission shall be deemed to satisfy
         the requirements of this clause (ii) with respect to consolidated
         statements;

                    (iii) promptly upon their becoming available, one copy of
         (a) each financial statement, report, notice or proxy statement sent by
         the Company or any Restricted Subsidiary to public securities holders
         generally, and (b) each regular or periodic report, each registration
         statement that shall have become effective (other than registration
         statements relating to employee benefit plans on Form 5-8, and without
         exhibits except as expressly requested by such holder), and each
         related final prospectus and all amendments thereto filed by the
         Company or any Restricted Subsidiary with the Securities and Exchange
         Commission;

                    (iv) promptly, and in any event within five days after a
         Responsible Officer becoming aware of the existence thereof, a written
         notice specifying any Default or Event of Default and the nature and
         period of existence thereof and what action the Company is taking or
         proposes to take with respect thereto;

                    (v) promptly, and in any event within five days after a
         Responsible Officer becoming aware of any of the following, a written
         notice setting forth the nature

                                       12
<PAGE>   13

         thereof and the action, if any, that the Company or an ERISA Affiliate
         proposes to take with respect thereto:

                              (a) with respect to any Plan, any reportable
                   event, as defined in section 4043(b) of ERISA and the
                   regulations thereunder, for which notice thereof has not been
                   waived pursuant to such regulations as in effect on the date
                   hereof; or

                              (b) the taking by the PBGC of steps to institute,
                   or the threatening by the PBGC of the institution of,
                   proceedings under section 4042 of ERISA for the termination
                   of, or the appointment of a trustee to administer, any Plan,
                   or the receipt by the Company or any ERISA Affiliate of a
                   notice from a Multiemployer Plan that such action has been
                   taken by the PBGC with respect to such Multiemployer Plan; or

                              (c) any event, transaction or condition that could
                   result in the incurrence of any liability by the Company or
                   any ERISA Affiliate pursuant to Title I or IV of ERISA or the
                   penalty or excise tax provisions of the Code relating to
                   employee benefit plans, or in the imposition of any Lien on
                   any of the rights, properties or assets of the Company or any
                   ERISA Affiliate pursuant to Title I or IV of ERISA or such
                   penalty or excise tax provisions, if such liability or Lien,
                   taken together with any other such liabilities or Liens then
                   existing, would reasonably be expected to have a Material
                   Adverse Effect; and

                    (vi) with reasonable promptness, such other data and
         information relating to the business, operations, affairs, financial
         condition, assets or properties of the Company or any of its
         Subsidiaries or relating to the ability of the Company to perform its
         obligations hereunder and under the Notes as from time to time may be
         reasonably requested by any such holder of Notes.

Together with each delivery of financial statements required by clauses (i) and
(ii) above, the Company will deliver to each Significant Holder an Officer's
Certificate demonstrating (with computations in reasonable detail) compliance by
the Company and its Subsidiaries with the provisions of paragraph 6 and stating
that there exists no Event of Default or Default, or, if any Event of Default or
Default exists, specifying the nature and period of existence thereof and what
action the Company proposes to take with respect thereto. Together with each
delivery of financial statements required by clause (ii) above, the Company will
deliver to each Significant Holder a certificate of such accountants stating
that, in making the audit necessary for their report on such financial
statements, they have obtained no knowledge of any Event of Default or Default,
or, if they have obtained knowledge of any Event of Default or Default,
specifying the nature and period of existence thereof. Such accountants,
however, shall not be liable to anyone by reason of their failure to obtain
knowledge of any Event of Default or Default which would not be disclosed in the
course of an audit conducted in accordance with generally accepted auditing
standards.

                                       13
<PAGE>   14

         5B.        INFORMATION REQUIRED BY RULE 144A. The Company covenants
that it will, upon the request of the holder of any Note, provide such holder,
and any qualified institutional buyer designated by such holder, such financial
and other information as such holder may reasonably determine to be necessary in
order to permit compliance with the information requirements of Rule 144A under
the Securities Act in connection with the resale of Notes, except at such times
as the Company is subject to and in compliance with the reporting requirements
of section 13 or 15(d) of the Exchange Act. For the purpose of this paragraph
5B, the term "QUALIFIED INSTITUTIONAL BUYER" shall have the meaning specified in
Rule 144A under the Securities Act.

         5C.        INSPECTION OF PROPERTY. The Company covenants that it will
permit any Person designated by any Significant Holder in writing, at such
Significant Holder's expense (if no Default or Event of Default exists), to
visit and inspect any of the properties of the Company and its Subsidiaries, to
examine the corporate books and financial records of the Company and its
Subsidiaries and make copies thereof or extracts therefrom and to discuss the
affairs, finances and accounts of any of such corporations with the principal
officers of the Company and its independent public accountants, all at such
reasonable times and as often as such Significant Holder may reasonably request.
If an Event of Default or Default then exists, any visit and/or inspection
pursuant to this paragraph 5C shall be at the expense of the Company.

         5D.        COVENANT TO SECURE NOTES EQUALLY. The Company covenants
that, if it or any Subsidiary shall create or assume any Lien upon any of its
property or assets, whether now owned or hereafter acquired, other than Liens
permitted by the provisions of paragraph 6B(1) (unless prior written consent to
the creation or assumption thereof shall have been obtained pursuant to
paragraph 11C), it will make or cause to be made effective provision whereby the
Notes will be secured by such Lien equally and ratably with any and all other
Debt thereby secured so long as any such other Debt shall be so secured.

         5E.        COMPLIANCE WITH LAWS. The Company covenants that it shall,
and shall cause each Restricted Subsidiary to, comply with all applicable laws,
rules, regulations, decrees and orders of all federal, state, local or foreign
courts or governmental agencies, authorities, instrumentalities or regulatory
bodies the noncompliance with which could be reasonably expected to result in a
material adverse effect on the business, assets, operations or condition
(financial or otherwise) of the Company and its Restricted Subsidiaries taken as
a whole.

         5F.        MAINTENANCE OF INSURANCE. The Company covenants that it and
each of its Restricted Subsidiaries will maintain, with financially sound and
reputable insurers, insurance in such amounts and against such liabilities and
hazards as customarily is maintained by the other companies operating similar
businesses. Together with each delivery of financial statements under paragraph
5A, the Company will, upon the request of any Significant Holder, deliver an
Officer's Certificate specifying the details of such insurance in effect.

                                       14
<PAGE>   15

         5G.        INTERCREDITOR AMENDMENT COUPON ADJUSTMENT. If, as of
December 31, 2000, the Intercreditor Amendment has not been delivered to the
Purchasers, the interest payable with respect to each outstanding Note shall,
until the Intercreditor Amendment has been delivered, be immediately adjusted to
equal (a) the interest rate affixed on the face of each such Note plus (b) .75%.

         6.         NEGATIVE COVENANTS. During the Issuance Period and so long
thereafter as any Note or other amount due hereunder is outstanding and unpaid,
the Company covenants as follows:

         6A.        MINIMUM CONSOLIDATED TANGIBLE NET WORTH. The Company will
not permit Consolidated Tangible Net Worth at any time to be less than the sum
of (a) $135,000,000 plus (b) 25% of Consolidated Net Income computed on a
cumulative basis for each of the elapsed fiscal quarters ending after December
31, 2000; provided that notwithstanding that Consolidated Net Income for any
such elapsed fiscal quarter may be a deficit figure, no reduction as a result
thereof shall be made on the sum to be maintained pursuant hereto.

         6B.        LIEN, DEBT AND OTHER RESTRICTIONS. The Company will not and
will not permit any Restricted Subsidiary to:

         6B(1).     LIENS. Create, assume or suffer to exist any Lien upon any
of its properties or assets, whether now owned or hereafter acquired (whether or
not provision is made for the equal and ratable securing of the Notes in
accordance with the provisions of paragraph 5D), except:

                    (a) Liens for taxes, assessments or other governmental
         charges not yet due or which are being actively contested in good faith
         by appropriate proceedings,

                    (b) Liens incidental to the conduct of its business or the
         ownership of its property and assets which were not incurred in
         connection with the borrowing of money or the obtaining of an advance
         or credit, and which do not in the aggregate materially detract from
         the value of the property or assets, or materially impair the use
         thereof in the operation of the business, of the Company and its
         Restricted Subsidiaries, taken as a whole,

                    (c) Liens on property or assets of a Restricted Subsidiary
         to secure obligations of such Restricted Subsidiary to the Company or
         to a Wholly-Owned Restricted Subsidiary,

                    (d) Liens created by or resulting from any litigation or
         legal proceeding which is currently being contested in good faith by
         appropriate proceedings, provided that the enforcement of such Liens is
         effectively stayed by such contest.

                                       15
<PAGE>   16

                    (e) Liens in existence on Property of the Company or any
         Restricted Subsidiary on the date hereof and identified on Schedule
         6B(1) hereto,

                    (f) any Liens renewing, extending or refunding any Lien
         permitted by clause (e) of this paragraph 6B(1), provided that the
         principal amount of the obligations secured thereby is not increased
         and the Lien is not extended to other Property,

                    (g) (i) any Lien in Property or in rights relating thereto
         to secure all or a part of the purchase price or cost of the
         construction of, or Debt incurred to pay all or a portion of the
         purchase price or cost of construction of, such Property, which Liens
         are created contemporaneously with, or within 180 days after, such
         acquisition or the completion of such construction by the Company or a
         Restricted Subsidiary, (ii) any Lien in Property existing in such
         Property at the time of acquisition thereof whether or not the Debt
         secured thereby is assumed by the Company or such Restricted
         Subsidiary, or (iii) any Lien existing in the Property of a corporation
         at the time such corporation is merged into or consolidated with the
         Company or a Restricted Subsidiary or existing in the Property of a
         corporation or firm at the time of a sale, lease or other disposition
         of the Properties of such corporation or firm as an entirety or
         substantially as an entirety to the Company or a Restricted Subsidiary;
         provided, however, that, in each case the obligations secured by any
         such Lien shall not exceed 100% of the fair market value of the related
         Property at the time of such acquisition, completion of construction,
         merger, consolidation, sale, lease or other disposition, as the case
         may be, and any such Lien shall attach solely to the Property acquired
         or constructed; and,

                    (h) Liens arising in connection with a Qualifying
         Securitization Transaction on Qualifying Receivables which are the
         subject of a Qualifying Securitization Transaction and any equipment,
         collections, accounts and other Property relating thereto;

                    (i) Liens securing other Priority Debt permitted under
         paragraph 6B(3); and

                    (j) other Liens incidental to the normal conduct of the
         business of the Company or any Restricted Subsidiary or the ownership
         of its property (including, without limitation, Liens arising from
         licenses or sublicenses granted by the Company or any Restricted
         Subsidiary) which are not incurred in connection with the incurrence of
         Debt and which do not in the aggregate materially impair the use of
         such property in the operation of the business of the Company and its
         Restricted Subsidiaries taken as a whole or the value of such property
         for the purposes of such business.

                                       16
<PAGE>   17

         6B(2).     FUNDED DEBT.  Create, incur, assume or suffer to exist any
Funded Debt, except:

                    (a) the Notes;

                    (b) the Series A Notes; and the Series B-H Notes,

                    (c) Funded Debt existing on the Series I Closing Day, all of
         which is set forth on Schedule 6B(2) hereto, and any renewals,
         extensions and refundings thereof, provided that the principal amount
         thereof shall not be increased;

                    (d) other Funded Debt provided that, in the case of (a), (b)
         or (c), immediately after giving effect to the creation, incurrence or
         assumption of such Funded Debt (i) the aggregate amount of all Funded
         Debt of the Company and its Restricted Subsidiaries on a consolidated
         basis does not exceed 60% of Consolidated Total Capitalization as of
         the end of the immediately prior fiscal quarter, and (ii) if such
         Funded Debt is Priority Debt, such creation, incurrence or assumption
         is permitted by paragraph 6B(3);

                    (e) Debt consisting of (i) intercompany loans from Wabash
         Technology Corp. to Wabash National, L.P. and (ii) intercompany loans
         from WTSI Technology Corp. to Wabash National, L.P.; and

                    (f) Debt arising under the Series I Guaranty, the Note
         Guaranty, Guarantees by the Guarantors with respect to the Series B-H
         Notes and the Revolver Guaranty.

         6B(3).     PRIORITY DEBT. Create, incur, assume or suffer to exist any
Priority Debt unless (a) the aggregate amount of all Priority Debt outstanding
at any time does not exceed 20% of Consolidated Adjusted Net Worth at such time,
and (b) the creation, incurrence or assumption of such Priority Debt is
permitted by paragraph 6B(2).

         6B(4).     SALE OF STOCK AND DEBT OF SUBSIDIARIES. Sell or otherwise
dispose of, or part with control of, any shares of stock or Debt of any
Subsidiary, except (i) to the Company or Wholly-Owned Restricted Subsidiary, and
(ii) that all shares of stock and Debt of any Subsidiary at the time owned by or
owed to the Company and all Subsidiaries may be sold as an entirety for a cash
consideration which represents the fair value (as determined in good faith by
the Board of Directors of the Company) at the time of sale of the shares of
stock and Debt so sold; provided that (a) such sale or other disposition, if
treated as a Transfer of assets of such Subsidiary, would be permitted by
paragraph 6B(6) and (b) at the time of such sale, such Subsidiary shall not own,
directly or indirectly, any shares of stock or Debt of any other Subsidiary
(unless all of the shares of stock and Debt of such other Subsidiary owned,
directly or indirectly, by the Company and all Subsidiaries are simultaneously
being sold as permitted by this paragraph 6B(4));

                                       17
<PAGE>   18

         6B(5).     MERGER AND CONSOLIDATION. Consolidate with or merge with or
into any Person except:

                    (a) the Company may consolidate with or merge with or into
         any other corporation provided that (i) the successor formed by such
         consolidation or the survivor of such merger, as the case may be, shall
         be a solvent corporation organized and existing under the laws of the
         United States or any State thereof (including the District of
         Columbia), and, if the Company is not such corporation, such
         corporation shall have executed and delivered to each holder of any
         Notes its assumption agreement, in form and substance reasonably
         satisfactory to the Required Holders, of the due and punctual payment
         of the Notes and performance and observance of each covenant and
         condition of this Agreement and the Notes, and (ii) immediately after
         giving effect to such transaction, no Default or Event of Default shall
         have occurred and be continuing and such successor or survivor would be
         permitted to incur at least $1.00 of additional Funded Debt under the
         provisions of paragraph 6B(2) hereof; and

                    (b) any Restricted Subsidiary may merge with any other
         Restricted Subsidiary.

         6B(6).     TRANSFER OF PROPERTY. Transfer any of its Property if, after
giving effect to such Transfer, the aggregate Value of all Property Transferred
(other than as permitted by clauses (a), (b) or (c) of this paragraph 6B(6) on
or after the Series I Closing Day shall exceed 25% of Consolidated Total Assets
as of the Series I Closing Day, except:

                    (a) the Transfer in the ordinary course of business of (i)
         inventory held for sale or (ii) equipment, fixtures, supplies or
         materials no longer required in the operation of the business of the
         Company or such Restricted Subsidiary or that is obsolete;

                    (b) (b)(i) the Company or any Restricted Subsidiary may
         Transfer Qualifying Receivables in connection with a Qualifying
         Securitization Transaction, and (ii) Wabash Finance may Transfer, in
         the ordinary course of its business, lease and other finance contract
         receivables and equipment subject to lease; provided, however, (x) in
         the case of Transfers described in clause (b)(i), above, that any
         Special Purpose Subsidiary shall not own any Property or conduct any
         activities other than those Properties and activities which are
         reasonably required to be owned and conducted in connection with the
         involvement of such Subsidiary in Qualifying Securitization
         Transactions, and (y) in the case of Transfers described in clause
         (b)(ii), that (A) the proceeds received by Wabash Finance in connection
         with such Transfer shall be not less than the fair market value of the
         Property which is the subject of such Transfer and (B) the aggregate
         Value of all Property described in clause (b)(ii) and subject of
         Transfers during the then current fiscal year of Wabash Finance is not
         greater than 50% of Wabash Finance's Tangible Assets as of the end of
         Wabash Finance's fiscal year then most recently ended;

                                       18
<PAGE>   19

                    (c) any Restricted Subsidiary may Transfer Property to the
         Company or another Wholly-Owned Restricted Subsidiary;

                    (d) either: (i) prior to, or contemporaneously with, such
         Transfer the Company shall have delivered to each holder of a Note an
         Officer's Certificate certifying that the Company is electing to use
         the Excess Net Proceeds from such Transfer in the manner provided in
         this clause (i) and, within one year after the date of such Transfer,
         the Company or the Restricted Subsidiary making such Transfer shall
         have used such Excess Net Proceeds to acquire other Property having a
         fair market value at least equal to the Value of the Property
         Transferred, provided that such acquired Property shall not be subject
         to any Lien to any greater extent than the Liens to which the Property
         transferred was subject to, or (ii) the Company shall not less than 30
         days nor more than 60 days prior to the date of such Transfer offer
         pursuant to a written notice (the "ASSET DISPOSITION PREPAYMENT
         NOTICE") to apply on a pro rata basis the Excess Net Proceeds to which
         such assets relate towards the prepayment of all outstanding Senior
         Funded Debt of the Company (including, without limitation, the Notes
         pursuant to paragraph 4C hereof, together with accrued interest
         thereon, including the premium provided for in said paragraph 4C). Such
         Asset Disposition Prepayment Notice shall specify (A) a date (the
         "ASSET DISPOSITION PREPAYMENT DATE"), which shall be not less than 120
         days nor more than 180 days following the date of such Asset
         Disposition Prepayment Notice, on which the Company will apply such
         Excess Net Proceeds to the prepayment on a pro rata basis of all of the
         outstanding Senior Funded Debt of the Company held by any Person which
         accepts such offer of prepayment and (B) a date, which shall be not
         more than 60 days nor less than 30 days prior to such Asset Disposition
         Prepayment Date, on which each holder of Senior Funded Debt of the
         Company must accept or decline such offer of prepayment. Without
         limiting the foregoing, the Company shall not more than 15 days nor
         less than 10 days prior to such Asset Disposition Prepayment Date send
         a second written notice (the "SECONDARY ASSET DISPOSITION PREPAYMENT
         NOTICE") to all holders of outstanding Senior Funded Debt of the
         Company notifying each such holder of the decision of each other holder
         of Senior Funded Debt of the Company to accept or reject such offer of
         prepayment and in such Secondary Asset Disposition Prepayment Notice
         offer to each holder of outstanding Senior Funded Debt to apply on a
         pro rata basis the amount of such Excess Net Proceeds which will not be
         applied to such prepayment by virtue of any such holder of Senior
         Funded Debt having declined the original offer of prepayment. On such
         Asset Disposition Prepayment Date, the Company shall apply the amount
         of such Excess Net Proceeds which has been agreed or deemed to be
         agreed by holders of Senior Funded Debt of the Company pursuant to any
         agreement pursuant to which any such Senior Funded Debt is outstanding
         shall be applied to the prepayment of Senior Funded Debt held by each
         holder thereof which has accepted or been deemed to accept such initial
         offer of prepayment or such initial offer and such secondary offer of
         prepayment, as the case may be, to the prepayment of Senior Funded Debt
         as and to the extent herein contemplated. It is understood and agreed
         by the Company and each holder of the Notes by its acceptance thereof
         that any such holder may decline any such offer of prepayment, that the
         failure of any such holder to accept or decline any such offer of
         prepayment shall

                                       19
<PAGE>   20

         be deemed to be an election by such holder to accept such prepayment
         and that if any such offer is so accepted, the Excess Net Proceeds so
         offered towards the prepayment of the Notes and accepted shall be
         prepaid, together with the premium provided for in paragraph 4C.

         6B(7).     TRANSACTIONS WITH AFFILIATES. Enter into directly or
indirectly any Material transaction or Material group of related transactions
(including without limitation the purchase, lease, sale or exchange of
properties of any kind or the rendering of any service) with any Affiliate
(other than the Company or another Restricted Subsidiary), except pursuant to
the reasonable requirements of the Company's or such Restricted Subsidiary's
business and upon fair and reasonable terms no less favorable to the Company or
such Restricted Subsidiary than would be obtainable in a comparable arm's-length
transaction with a Person not an Affiliate. It is understood and agreed by the
parties hereto that (i) sales of Qualifying Receivables in connection with
Qualifying Securitization Transactions, and (ii) intercompany loans and
transactions that are reasonably related to Qualifying Securitization
Transactions shall not be deemed to violate this paragraph 6B(7).

         6B(8).     RESTRICTED PAYMENTS. Declare or make any Restricted Payments
in any fiscal quarter unless, immediately after giving effect thereto (a) the
aggregate amount of all Restricted Payments declared or made by the Company and
its Restricted Payments in such fiscal quarter does not exceed the Restricted
Payment Amount for such fiscal quarter, and (b) no Default or Event of Default
shall have occurred and the continuing and the Company would be permitted to
incur at least $1.00 of additional Funded Debt under the provision of paragraph
6B(2) hereof; provided, however, that notwithstanding anything to the contrary
contained in the first part of this sentence, a Restricted Subsidiary may at any
time pay dividends or make other distributions to the Company and prepay any
Debt owed to the Company.

         6B(9).     LIMITATIONS ON RESTRICTIVE AGREEMENTS. Enter into, or suffer
to exist, any agreement with any Person which, directly or indirectly, prohibits
or limits the ability of any Restricted Subsidiary to (a) pay dividends or make
other distributions to the Company or prepay any Debt owed to the Company or (b)
transfer any of its properties or assets to the Company (other than (i) such
restrictions on transfers of assets as are contained in the Credit Agreement as
in effect on the Series I Closing Day and (ii) with respect to assets subject to
Liens permitted by paragraph 6B(1).

         6B(10).    ADDITIONAL SUBSIDIARY GUARANTORS. (a) If, as of the end of
any fiscal quarter of the Company (commending with the fiscal quarter ending on
December 31, 1999), either (1) the aggregate Available Assets of the Company and
the Guarantors were less than 75% of the Consolidated Total Assets as of such
date or (2) the Company and the Guarantors accounted for less than 75% of the
Consolidated Net Income (or, if Consolidated Net Income was not positive, less
than 75% of the consolidated net sales of the Company and its Restricted
Subsidiaries) for the four fiscal quarter period then ended, then within 90 days
(or if such fiscal quarter is the last fiscal quarter of the Company's fiscal
year, 120 days) after the end of such fiscal quarter, the Company shall cause
one or more additional Restricted Subsidiaries to execute

                                       20
<PAGE>   21

and deliver a supplement to the Series I Guaranty in the form of Exhibit A to
the Series I Guaranty so that, after taking such additional Guarantors into
account, both (A) the aggregate Available Assets of the Company and the
Guarantors accounted for at least 75% of the Consolidated Net Income (or, if
Consolidated Net Income was not positive, at least 75% of the consolidated net
sales of the Company and its Restricted Subsidiaries) for the four fiscal
quarter period then ended. In addition, concurrently with any Restricted
Subsidiary (other than the Initial Guarantors) entering into a guaranty in
respect of any Debt of the Company under the Credit Agreement, the Company shall
cause such Restricted Subsidiary to execute and deliver a supplement to the
Series I Guaranty in the form of Exhibit A to the Series I Guaranty.

                  (b) Concurrently with the execution and delivery by a
Restricted Subsidiary of a supplement to the Series I Guaranty, the Company
shall cause such Restricted Subsidiary to deliver to each holder of Notes (1)
such documents and evidence with respect to such Restricted Subsidiary as the
Required Holders may reasonably request in writing in order to establish the
existence and good standing of such Restricted Subsidiary and evidence that the
Board of Directors or other governing body of such Restricted Subsidiary (as
applicable) has adopted resolutions or taken other appropriate action (as
applicable) authorizing the execution and delivery of a supplement to the Series
I Guaranty, (2) an acknowledgment, in form and substance satisfactory to the
Required Holders, of such Restricted Subsidiary's Agreement to be bound by the
terms of the Intercreditor Agreement, and (3) an opinion of counsel to the
effect that (i) such Restricted Subsidiary is a corporation or other business
entity, duly organized, validly existing and in good standing, if applicable,
under the laws of its jurisdiction of organization, has the power and the
authority to execute and deliver a supplement to the Series I Guaranty and to
perform the Series I Guaranty, (ii) the execution and delivery of a supplement
to the Series I Guaranty and performance of the Series I Guaranty has been duly
authorized by all necessary action on the part of such Restricted Subsidiary, a
supplement to the Series I Guaranty has been duly executed and delivered by such
Restricted Subsidiary and the Series I Guaranty constitutes the legal, valid and
binding contract of such Restricted Subsidiary enforceable against such
Restricted Subsidiary in accordance with its terms, subject to bankruptcy,
insolvency, fraudulent conveyance or similar laws affecting creditors' rights
generally, and general principles of equity (regardless of whether the
application of such principles is considered in a proceeding in equity or at
law), (iii) the execution and delivery of a supplement to the Series I Guaranty
and the performance by such Restricted Subsidiary of the Series I Guaranty do
not conflict with or result in any breach of any of the provisions of or
constitute a default under or result in the creation of a Lien upon any of the
property of such Restricted Subsidiary pursuant to the provisions of its charter
documents or any agreement or other instrument known to such counsel to which
such Restricted Subsidiary is a party to or by which such Restricted Subsidiary
may be bound and (iv) no approval, consent or withholding of objection on the
part of, or filing, registration or qualification with, any Governmental
Authority, Federal or state, is necessary in connection with the lawful
execution and delivery of a supplement to the Series I Guaranty by such
Restricted Subsidiary or the performance of the Series I Guaranty by such
Restricted Subsidiary, which opinion may contain such assumptions and
qualifications as are reasonably acceptable to the Required Holders.

                                       21
<PAGE>   22

                  (c) If (i) as of the end of any fiscal quarter of the Company
(commencing with the fiscal quarter ending on December 31, 2000), the Company
and certain Guarantors (the "CONTINUING GUARANTORS") have satisfied the
conditions set forth in clauses (A) and (B) of the first sentence of paragraph
6B(10)(a) of four consecutive fiscal quarters, ending with such fiscal quarter,
(ii) within 90 days (or, if such fiscal quarter is the last fiscal quarter of
the Company's fiscal year, 120 days) after the end of such fiscal quarter, the
Company delivers to the holders of the Notes a certificate setting forth
calculations (in a form reasonably satisfactory to the Required Holders) for the
Company and the Continuing Guarantors for each of such four consecutive fiscal
quarters demonstrating compliance with the preceding clause (i), and (iii) no
Event of Default or Default shall have occurred since the beginning of such four
fiscal quarter period (and the Company's certificate required by the preceding
clause (ii) contains a representation and warranty to such effect), then the
Company may deliver to the holders of the Notes, together with such certificate,
a request to release any Guarantor or Guarantors, other than the continuing
Guarantors, from the Series I Guaranty, and the Required Holders shall promptly
execute and deliver such a release (in a form reasonably satisfactory to the
Required Holders), provided, however, that the Required Holders shall not be
obligated to release any Guarantor pursuant hereto unless such Guarantor shall
concurrently be released from any guaranty of the Company's obligations under
the Credit Agreement.

         6C.        MOST FAVORED LENDER. Unless otherwise specified in writing
by the Required Holder(s), the Company will not, and will not permit any
Subsidiary to, agree to, with or for the benefit of the holder(s) of any other
Debt of the Company or any Subsidiary in an aggregate outstanding principal
amount in excess of $25,000,000 or with or for the benefit of Persons with
commitments to provide loans or other financial accommodations to the Company or
any Subsidiary in an aggregate principal amount in excess of $25,000,000, any
financial or restrictive covenants or events of default which are more
restrictive than, or in addition to, the financial or negative covenants or
Events of Default contained in this Agreement, unless the Company has entered
into, or has caused such Subsidiary to enter into, an agreement with the holders
of the Notes, in form and substance reasonably satisfactory to the holders of
the Notes, whereby such financial or negative covenants or events of default are
added to this Agreement for the benefit of the Notes, and any conditions
precedent to the effectiveness of such agreement have been satisfied; provided,
however, the Required Holder(s) agree that any covenant or event of default
added to this Agreement solely by virtue of this provision shall be eliminated
or made less restrictive, as the case may be, at the request of the Company if
all such other agreements which contain such covenant or event of default have
been modified to eliminate or make less restrictive, as the case may be, such
covenant or event of default and (i) no default or event of default was
continuing at the time of such modification (or series of related modifications)
under such other agreements, (ii) the Company paid no compensation to such other
lender(s) in connection with such modification (or series of related
modifications and (iii) no Default or Event of Default shall be continuing under
this Agreement).

                                       22
<PAGE>   23
         7.         EVENTS OF DEFAULT.

         7A.        ACCELERATION. If any of the following events shall occur and
be continuing for any reason whatsoever (and whether such occurrence shall be
voluntary or involuntary or come about or be effected by operation of law or
otherwise):

                    (i) the Company defaults in the payment of any principal of,
         or Yield-Maintenance Amount payable with respect to, any Note when the
         same shall become due, either by the terms thereof or otherwise as
         herein provided; or

                    (ii) the Company defaults in the payment of any interest on
         any Note for more than five Business Days after the date due; or

                    (iii) the Company or any Restricted Subsidiary defaults
         (whether as primary obligor or as guarantor or other surety) in any
         payment of principal of or interest on any other obligation for money
         borrowed (or any Capitalized Lease Obligation, any obligation under a
         conditional sale or other title retention agreement, any obligation
         issued or assumed as full or partial payment for property whether or
         not secured by a purchase money mortgage or any obligation under notes
         payable or drafts accepted representing extensions of credit) beyond
         any period of grace provided with respect thereto, or the Company or
         any Restricted Subsidiary fails to perform or observe any other
         agreement, term or condition contained in any agreement under which any
         such obligation is created (or if any other event thereunder or under
         any such agreement shall occur and be continuing) and the effect of
         such failure or other event is to cause, or to permit the holder or
         holders of such obligation (or a trustee on behalf of such holder or
         holders) to cause, such obligation to become due (or to be repurchased
         by the Company or any Restricted Subsidiary) prior to any stated
         maturity, provided that the aggregate amount of all obligations as to
         which such a payment default shall occur and be continuing or such a
         failure or other event causing or permitting acceleration (or resale to
         the Company or any Restricted Subsidiary) shall occur and be continuing
         exceeds $5,000,000; or

                    (iv) any representation or warranty made by the Company
         herein or by the Company or any Restricted Subsidiary or by any officer
         of the Company or any Restricted Subsidiary in this Agreement or in any
         writing furnished in connection with or pursuant to this Agreement
         shall be false or incorrect in any material respect on the date as of
         which made; or

                    (v) the Company fails to perform or observe any agreement
         contained in paragraph 5A or 6 and such default is not remedied within
         10 days after the earlier of (i) a Responsible Officer obtaining actual
         knowledge of such default and (2) the Company receiving written notice
         of such default from any holder of a Note (any such written notice to
         be identified as a "notice of default" and to refer specifically to
         this subparagraph (v) of paragraph 7A); or

                                       23
<PAGE>   24

                    (vi) the Company fails to perform or observe any other
         agreement, term or condition contained herein and such failure shall
         not be remedied within 30 days after the earlier of (i) a Responsible
         Officer obtaining actual knowledge of such default and (ii) the Company
         receiving written notice of such default from any holder of a Note (any
         such written notice to be identified as a "notice of default" and to
         refer specifically to this subclause (vi) of paragraph 7A); or

                    (vii) the Company or any Restricted Subsidiary makes an
         assignment for the benefit of creditors or is generally not paying its
         debts as such debts become due; or

                    (viii) any decree or order for relief in respect of the
         Company or any Restricted Subsidiary is entered under any bankruptcy,
         reorganization, compromise, arrangement, insolvency, readjustment of
         debt, dissolution or liquidation or similar law, whether now or
         hereafter in effect (herein called the "BANKRUPTCY LAW"), of any
         jurisdiction; or

                    (ix) the Company or any Restricted Subsidiary petitions or
         applies to any tribunal for, or consents to, the appointment of, or
         taking possession by, a trustee, receiver, custodian, liquidator or
         similar official of the Company or any Restricted Subsidiary, or of any
         substantial part of the assets of the Company or any Restricted
         Subsidiary, or commences a voluntary case under the Bankruptcy Law of
         the United States or any proceedings (other than proceedings for the
         voluntary liquidation and dissolution of a Restricted Subsidiary)
         relating to the Company or any Restricted Subsidiary under the
         Bankruptcy Law of any other jurisdiction; or

                    (x) any such petition or application is filed, or any such
         proceedings are commenced, against the Company or any Restricted
         Subsidiary and the Company or such Restricted Subsidiary by any act
         indicates its approval thereof, consent thereto or acquiescence
         therein, or an order, judgment or decree is entered appointing any such
         trustee, receiver, custodian, liquidator or similar official, or
         approving the petition in any such proceedings, and such order,
         judgment or decree remains unstayed and in effect for more than 30
         days; or

                    (xi) any order, judgment or decree is entered in any
         proceedings against the Company decreeing the dissolution of the
         Company and such order, judgment or decree remains unstayed and in
         effect for more than 60 days; or

                    (xii) any order, judgment or decree is entered in any
         proceedings against the Company or any Restricted Subsidiary decreeing
         a split-up of the Company or such Restricted Subsidiary which requires
         the divestiture of assets representing a substantial part, or the
         divestiture of the stock of a Subsidiary whose assets represent a
         substantial part, of the consolidated assets of the Company and its
         Subsidiaries (determined in accordance with generally accepted
         accounting principles) or which requires the divestiture of assets, or

                                       24
<PAGE>   25

         stock of a Subsidiary, which shall have contributed a substantial part
         of the consolidated net income of the Company and its Subsidiaries
         (determined in accordance with generally accepted accounting
         principles) for any of the three fiscal years then most recently ended,
         and such order, judgment or decree remains unstayed and in effect for
         more than 60 days; or

                    (xiii) one or more final judgments in an aggregate amount in
         excess of $2,000,000 is rendered against the Company or any Restricted
         Subsidiary and, within 45 days after entry thereof, any such judgment
         is not discharged or execution thereof stayed pending appeal, or within
         45 days after the expiration of any such stay, such judgment is not
         discharged; or

                    (xiv) the Company or any ERISA Affiliate, in its capacity as
         an employer under a Multiemployer Plan, makes a complete or partial
         withdrawal from such Multiemployer Plan resulting in the incurrence by
         such withdrawing employer of a withdrawal liability in an amount
         exceeding $500,000; or

                    (xv) the Series I Guaranty shall cease to be in full force
         and effect for any reason whatsoever with respect to any Guarantor
         (other than in connection with the release of a Guarantor from the
         Series I Guaranty as contemplated by paragraph 6B(10)(c), including,
         without limitation, a determination by any Governmental Authority or
         court that such agreement is invalid, void or unenforceable or any of
         the Restricted Subsidiaries party to the Series I Guaranty shall
         contest or deny in writing the validity or enforceability of any of its
         respective obligations under the Series I Guaranty; or

                    (xvi) the Company shall fail to deliver to the Purchasers
         the Intercreditor Amendment prior to June 30, 2001.

then (a) if such event is an Event of Default specified in clause (i) or (ii) of
this paragraph 7A, any holder of any Note may at its option during the
continuance of such Event of Default, by notice in writing to the Company,
declare all of the Notes held by such holder to be, and all of the Notes held by
such holder shall thereupon be and become, immediately due and payable at par
together with interest accrued thereon, without presentment, demand, protest or
notice of any kind, all of which are hereby waived by the Company, (b) if such
event is an Event of Default specified in clause (viii), (ix) or (x) of this
paragraph 7A with respect to the Company, all of the Notes at the time
outstanding shall automatically become immediately due and payable together with
interest accrued thereon and together with the Yield-Maintenance Amount, if any,
with respect to each Note, without presentment, demand, protest or notice of any
kind, all of which are hereby waived by the Company, and (c) with respect to any
event constituting an Event of Default, the Required Holder(s) of the Notes of
any Series may at its or their option during the continuance of such Event of
Default, by notice in writing to the Company, declare all of the Notes of such
Series to be, and all of the Notes of such Series shall thereupon be and become,
immediately due and payable together with interest accrued thereon and together
with the Yield-Maintenance Amount, if any, with respect to each Note of such
Series, without presentment, demand, protest or notice of any kind, all of which
are hereby waived by the Company.

                                       25
<PAGE>   26

         7B.        RESCISSION OF ACCELERATION. At any time after any or all of
the Notes of any Series shall have been declared immediately due and payable
pursuant to paragraph 7A, the Required Holder(s) of the Notes of such Series
may, by notice in writing to the Company, rescind and annul such declaration and
its consequences if (i) the Company shall have paid all overdue interest on the
Notes of such Series, the principal of and Yield-Maintenance Amount, if any,
payable with respect to any Notes of such Series which have become due otherwise
than by reason of such declaration, and interest on such overdue interest and
overdue principal and Yield-Maintenance Amount at the rate specified in the
Notes of such Series, (ii) the Company shall not have paid any amounts which
have become due solely by reason of such declaration, (iii) all Events of
Default and Defaults, other than non-payment of amounts which have become due
solely by reason of such declaration, shall have been cured or waived pursuant
to paragraph 11C, and (iv) no judgment or decree shall have been entered for the
payment of any amounts due pursuant to the Notes of such Series or this
Agreement. No such rescission or annulment shall extend to or affect any
subsequent Event of Default or Default or impair any right arising therefrom.

         7C.        NOTICE OF ACCELERATION OR RESCISSION. Whenever any Note
shall be declared immediately due and payable pursuant to paragraph 7A or any
such declaration shall be rescinded and annulled pursuant to paragraph 7B, the
Company shall forthwith give written notice thereof to the holder of each Note
of each Series at the time outstanding.

         7D.        OTHER REMEDIES. If any Event of Default or Default shall
occur and be continuing, the holder of any Note may proceed to protect and
enforce its rights under this Agreement and such Note by exercising such
remedies as are available to such holder in respect thereof under applicable
law, either by suit in equity or by action at law, or both, whether for specific
performance of any covenant or other agreement contained in this Agreement or in
aid of the exercise of any power granted in this Agreement. No remedy conferred
in this Agreement upon the holder of any Note is intended to be exclusive of any
other remedy, and each and every such remedy shall be cumulative and shall be in
addition to every other remedy conferred herein or now or hereafter existing at
law or in equity or by statute or otherwise.

         8.         REPRESENTATIONS, COVENANTS AND WARRANTIES. The Company
represents, covenants and warrants as follows (all references to "Subsidiary"
and "Subsidiaries" in this paragraph 8 shall be deemed omitted if the Company
has no Subsidiaries at the time the representations herein are made or
repeated):

         8A.        ORGANIZATION; SUBSIDIARY PREFERRED STOCK. The Company is a
corporation duly organized and existing in good standing under the laws of the
State of Delaware, each Subsidiary is duly organized and existing in good
standing under the laws of the jurisdiction in which it is incorporated, and the
Company has and each Subsidiary has the corporate power to own its respective
property and to carry on its respective business as now being conducted. No
Subsidiary has outstanding any shares of stock of a class which has priority
over any other class as to dividends or in liquidation. Schedule 8A is (except
as noted therein) a complete and correct list of the Company's Subsidiaries,
showing, as to each Subsidiary, the correct name thereof, the

                                       26
<PAGE>   27

jurisdiction of its organization, and the percentage of shares of each class of
its capital stock or similar equity interests outstanding owned by the Company
and each other Subsidiary, and identifying each such Subsidiary as a Restricted
Subsidiary or an Unrestricted Subsidiary. All of the outstanding shares of
capital stock or similar equity interests of each Restricted Subsidiary shown in
Schedule 8A as being owned by the Company and its Subsidiaries have been validly
issued, are fully paid and non-assessable and are owned by the Company or
another Restricted Subsidiary free and clear of any Lien (except as otherwise
disclosed in Schedule 8A).

         8B.        FINANCIAL STATEMENTS. The Company has furnished each
Purchaser of any Note with the following financial statements, identified by a
principal financial officer of the Company: (i) a consolidated balance sheet of
the Company and its Subsidiaries as at December 31 in each of the three fiscal
years of the Company most recently completed prior to the date as of which this
representation is made or repeated to such Purchaser (other than fiscal years
completed within 90 days prior to such date for which audited financial
statements have not been released) and consolidated statements of income and
cash flows and a consolidated statement of shareholders' equity of the Company
and its Subsidiaries for each such year, all reported on by Arthur Andersen and
(ii) consolidated balance sheet of the Company and its Subsidiaries as at the
end of the quarterly period (if any) most recently completed prior to such date
and after the end of such fiscal year (other than quarterly periods completed
within 60 days prior to such date for which financial statements have not been
released) and the comparable quarterly period in the preceding fiscal year and
consolidated statements of income and cash flows and a consolidated statement of
shareholders' equity for the periods from the beginning of the fiscal years in
which such quarterly periods are included to the end of such quarterly periods,
prepared by the Company. Such financial statements (including any related
schedules and/or notes) are true and correct in all material respects (subject,
as to interim statements, to changes resulting from audits and year-end
adjustments), have been prepared in accordance with generally accepted
accounting principles consistently followed throughout the periods involved and
show all liabilities, direct and contingent, of the Company and its Subsidiaries
required to be shown in accordance with such principles. The balance sheets
fairly present the condition of the Company and its Subsidiaries as at the dates
thereof, and the statements of income, stockholders' equity and cash flows
fairly present the results of the operations of the Company and its Subsidiaries
and their cash flows for the periods indicated. There has been no material
adverse change in the business, property or assets, condition (financial or
otherwise), operations or prospects of the Company and its Subsidiaries taken as
a whole since the end of the most recent fiscal year for which such audited
financial statements have been furnished.

         8C.        ACTIONS PENDING. There is no action, suit, investigation or
proceeding pending or, to the knowledge of the Company, threatened against the
Company or any of its Subsidiaries, or any properties or rights of the Company
or any of its Subsidiaries, by or before any court, arbitrator or administrative
or governmental body which could be reasonably expected to result in any
material adverse change in the business, property or assets, condition
(financial or otherwise) or operations of the Company and its Subsidiaries taken
as a whole.

                                       27
<PAGE>   28

         8D.        OUTSTANDING DEBT. Neither the Company nor any of its
Restricted Subsidiaries has outstanding any Debt except as permitted by
paragraph 6B(2). There exists no default under the provisions of any instrument
evidencing such Debt or of any agreement relating thereto.

         8E.        TITLE TO PROPERTIES. The Company has and each of its
Restricted Subsidiaries has good and indefeasible title to its respective real
properties (other than properties which it leases) and good title to all of its
other respective properties and assets, including the properties and assets
reflected in the most recent audited balance sheet referred to in paragraph 8B
(other than properties and assets disposed of in the ordinary course of
business), subject to no Lien of any kind except Liens permitted by paragraph
6B(1). All leases necessary in any material respect for the conduct of the
respective businesses of the Company and its Subsidiaries are valid and
subsisting and are in full force and effect.

         8F.        TAXES. The Company has and each of its Subsidiaries has
filed all federal, state and other income tax returns which, to the best
knowledge of the officers of the Company and its Subsidiaries, are required to
be filed, and each has paid all taxes as shown on such returns and on all
assessments received by it to the extent that such taxes have become due, except
such taxes as are being contested in good faith by appropriate proceedings for
which adequate reserves have been established in accordance with generally
accepted accounting principles.

         8G.        CONFLICTING AGREEMENTS AND OTHER MATTERS. Neither the
Company nor any of its Subsidiaries is a party to any contract or agreement or
subject to any charter or other corporate restriction which materially and
adversely affects its business, property or assets, condition (financial or
otherwise) or operations. Neither the execution nor delivery of this Agreement
or the Notes, nor the offering, issuance and sale of the Notes, nor fulfillment
of nor compliance with the terms and provisions hereof and of the Notes will
conflict with, or result in a breach of the terms, conditions or provisions of,
or constitute a default under, or result in any violation of, or result in the
creation of any Lien upon any of the properties or assets of the Company or any
of its Subsidiaries pursuant to, the charter or by-laws of the Company or any of
its Subsidiaries, any award of any arbitrator or any agreement (including any
agreement with stockholders), instrument, order, judgment, decree, statute, law,
rule or regulation to which the Company or any of its Subsidiaries is subject.
Neither the Company nor any of its Subsidiaries is a party to, or otherwise
subject to any provision contained in, any instrument evidencing Indebtedness of
the Company or such Subsidiary, any agreement relating thereto or any other
contract or agreement (including its charter) which limits the amount of, or
otherwise imposes restrictions on the incurring of, Debt of the Company of the
type to be evidenced by the Notes except as set forth in the agreements listed
in Schedule 8G attached hereto (as such Schedule 8G may have been modified from
time to time by written supplements thereto delivered by the Company and
accepted in writing by Prudential).

                                       28
<PAGE>   29

         8H.        OFFERING OF NOTES. Neither the Company nor any agent acting
on its behalf has, directly or indirectly, offered the Notes or any similar
security of the Company for sale to, or solicited any offers to buy the Notes or
any similar security of the Company from, or otherwise approached or negotiated
with respect thereto with, any Person other than institutional investors, and
neither the Company nor any agent acting on its behalf has taken or will take
any action which would subject the issuance or sale of the Notes to the
provisions of Section 5 of the Securities Act or to the provisions of any
securities or Blue Sky law of any applicable jurisdiction.

         8I.        USE OF PROCEEDS. The proceeds of the Series I Notes will be
used to retire existing indebtedness. The Company is not engaged principally, or
as one of its important activities, in the business of extending credit for the
purpose of purchasing or carrying "margin stock" (within the meaning of
Regulation U of the Board of Governors of the Federal Reserve System), and the
aggregate market value of all "margin stock" owned by the Company and its
Restricted Subsidiaries does not exceed 25% of the aggregate value of the assets
thereof, as determined by any reasonable method. Neither the Company nor any
agent acting on its behalf has taken or will take any action which might cause
this Agreement or the Notes to violate Regulation U, Regulation T or any other
regulation of the Board of Governors of the Federal Reserve System or to violate
the Exchange Act, in each case as in effect now or as the same may hereafter be
in effect.

         8J.        ERISA. No accumulated funding deficiency (as defined in
section 302 of ERISA and section 412 of the Code), whether or not waived, exists
with respect to any Plan (other than a Multiemployer Plan). No liability to the
PBGC has been or is expected by the Company or any ERISA Affiliate to be
incurred with respect to any Plan (other than a Multiemployer Plan) by the
Company, any Subsidiary or any ERISA Affiliate which is or would be materially
adverse to the business, property or assets, condition (financial or otherwise)
or operations of the Company and its Subsidiaries taken as a whole. Neither the
Company, any Subsidiary nor any ERISA Affiliate has incurred or presently
expects to incur any withdrawal liability under Title IV of ERISA with respect
to any Multiemployer Plan which is or would be materially adverse to the
business, property or assets, condition (financial or otherwise) or operations
of the Company and its Subsidiaries taken as a whole. The execution and delivery
of this Agreement and the issuance and sale of the Notes will be exempt from or
will not involve any transaction which is subject to the prohibitions of section
406 of ERISA and will not involve any transaction in connection with which a
penalty could be imposed under section 502(i) of ERISA or a tax could be imposed
pursuant to section 4975 of the Code. The representation by the Company in the
next preceding sentence is made in reliance upon and subject to the accuracy of
the representation of each Purchaser in paragraph 9B as to the source of funds
to be used by it to purchase any Notes.

         8K.        GOVERNMENTAL CONSENT. Neither the nature of the Company or
of any Subsidiary, nor any of their respective businesses or properties, nor any
relationship between the Company or any Subsidiary and any other Person, nor any
circumstance in connection with the offering, issuance, sale or delivery of the
Notes is such as to require any authorization, consent, approval, exemption or
any action by or notice to or filing with any court or administrative or

                                       29
<PAGE>   30

governmental body (other than routine filings after the Closing Day for any
Notes with the Securities and Exchange Commission and/or state Blue Sky
authorities) in connection with the execution and delivery of this Agreement,
the offering, issuance, sale or delivery of the Notes or fulfillment of or
compliance with the terms and provisions hereof or of the Notes.

         8L.        ENVIRONMENTAL COMPLIANCE. The Company and its Subsidiaries
and all of their respective properties and facilities have complied at all times
and in all respects with all foreign, federal, state, local and regional
statutes, laws, ordinances and judicial or administrative orders, judgments,
rulings and regulations relating to protection of the environment except, in any
such case, where failure to comply would not result in a material adverse effect
on the business, condition (financial or otherwise) or operations of the Company
and its Subsidiaries taken as a whole.

         8M.        REGULATORY STATUS. Neither the Company nor any Subsidiary is
(i) an "investment company" or a company "controlled" by an "investment company"
within the meaning of the Investment Company Act of 1940, as amended, (ii) a
"holding company" or a "subsidiary company" or an "affiliate" of a "holding
company" or a "subsidiary company" of a "holding company", within the meaning of
the Public Utility Act of 1935, as amended, or (iii) a "public utility" within
the meaning of the Federal Power Act, as amended.

         8N.        SECTION 144A. The Notes are not of the same class as
securities, if any, of the Company listed on a national securities exchange
registered under Section 6 of the Exchange Act or quoted in a U.S. automated
inter-dealer quotation system.

         8O.        ABSENCE OF FINANCING STATEMENTS, ETC. Except with respect to
Liens permitted by paragraph 6B(1) hereof, there is no financing statement,
security agreement, chattel mortgage, real estate mortgage or other document
filed or recorded with any filing records, registry or other public office, that
purports to cover, affect or give notice of any present or possible future Lien
on, or security interest in, any assets or property of the Company or any of its
Subsidiaries or any rights relating thereto.

         8P.        DISCLOSURE. Neither this Agreement nor any other document,
certificate or statement furnished to any Purchaser by or on behalf of the
Company in connection herewith contains any untrue statement of a material fact
or omits to state a material fact necessary in order to make the statements
contained herein and therein not misleading. There is no fact peculiar to the
Company or any of its Subsidiaries which materially adversely affects or in the
future may (so far as the Company can now foresee) materially adversely affect
the business, property or assets, condition (financial or otherwise) or
operations of the Company or any of its Subsidiaries and which has not been set
forth in this Agreement.

         8Q.        HOSTILE TENDER OFFERS. None of the proceeds of the sale of
any Notes will be used to finance a Hostile Tender Offer.

                                       30
<PAGE>   31

         9.         REPRESENTATIONS OF THE PURCHASERS.

                    Each Purchaser represents as follows:

         9A.        NATURE OF PURCHASE. Such Purchaser is not acquiring the
Notes purchased by it hereunder with a view to or for sale in connection with
any distribution thereof within the meaning of the Securities Act, provided that
the disposition of such Purchaser's property shall at all times be and remain
within its control.

         9B.        SOURCE OF FUNDS. The source of the funds being used by such
Purchaser to pay the purchase price of the Notes being purchased by such
Purchaser hereunder constitutes assets allocated to: (i) the "insurance company
general account" of such Purchaser (as such term is defined under Section V of
the United States Department of Labor's Prohibited Transaction Class Exemption
("PTCE") 95-60), and as of the date of the purchase of the Notes such Purchaser
satisfies all of the applicable requirements for relief under Sections I and IV
of PTCE 95-60, (ii) a separate account maintained by such Purchaser in which no
employee benefit plan, other than employee benefit plans identified on a list
which has been furnished by such Purchaser to the Company, participates to the
extent of 10% or more or (iii) an investment fund, the assets of which do not
include any assets of any employee benefit plan. For the purpose of this
paragraph 9B, the terms "SEPARATE ACCOUNT" and "EMPLOYEE BENEFIT PLAN" shall
have the respective meanings specified in section 3 of ERISA.

         10.        DEFINITIONS; ACCOUNTING MATTERS. For the purpose of this
Agreement, the terms defined in paragraphs 10A and 10B (or within the text of
any other paragraph) shall have the respective meanings specified therein and
all accounting matters shall be subject to determination as provided in
paragraph 10C.

         10A.       YIELD-MAINTENANCE TERMS.

                    "CALLED PRINCIPAL" shall mean, with respect to any Note, the
principal of such Note that is to be prepaid pursuant to paragraph 4C or 4F or
is declared to be immediately due and payable pursuant to paragraph 7A, as the
context requires.

                    "DISCOUNTED VALUE" shall mean, with respect to the Called
Principal of any Note, the amount obtained by discounting all Remaining
Scheduled Payments with respect to such Called Principal from their respective
scheduled due dates to the Settlement Date with respect to such Called
Principal, in accordance with accepted financial practice and at a discount
factor (as converted to reflect the periodic basis on which interest on such
Note is payable, if payable other than on a semi-annual basis) equal to the
Reinvestment Yield with respect to such Called Principal.

                    "REINVESTMENT YIELD" shall mean, with respect to the Called
Principal of any Note, the yield to maturity implied by (i) 0.50% over the
yields reported, as of 10:00 A.M. (New York City local time) on the Business Day
next preceding the Settlement Date with respect to

                                       31
<PAGE>   32

such Called Principal, on the display designated as "Page 678" on the Telerate
Service (or such other display as may replace page 678 on the Telerate Service)
for actively traded U.S. Treasury securities having a maturity equal to the
Remaining Average Life of such Called Principal as of such Settlement Date, or
if such yields shall not be reported as of such time or the yields reported as
of such time shall not be ascertainable, (ii) the Treasury Constant Maturity
Series yields reported, for the latest day for which such yields shall have been
so reported as of the Business Day next preceding the Settlement Date with
respect to such Called Principal, in Federal Reserve Statistical Release H.15
(519) (or any comparable successor publication) for actively traded U.S.
Treasury securities having a constant maturity equal to the Remaining Average
Life of such Called Principal as of such Settlement Date. Such implied yield
shall be determined, if necessary, by (a) converting U.S. Treasury bill
quotations to bond-equivalent yields in accordance with accepted financial
practice and (b) interpolating linearly between yields reported for various
maturities.

                    "REMAINING AVERAGE LIFE" shall mean, with respect to the
Called Principal of any Note, the number of years (calculated to the nearest
one-twelfth year) obtained by dividing (i) such Called Principal into (ii) the
sum of the products obtained by multiplying (a) each Remaining Scheduled Payment
of such Called Principal (but not of interest thereon) by (b) the number of
years (calculated to the nearest one-twelfth year) which will elapse between the
Settlement Date with respect to such Called Principal and the scheduled due date
of such Remaining Scheduled Payment.

                    "REMAINING SCHEDULED PAYMENTS" shall mean, with respect to
the Called Principal of any Note, all payments of such Called Principal and
interest thereon that would be due on or after the Settlement Date with respect
to such Called Principal if no payment of such Called Principal were made prior
to its scheduled due date.

                    "SETTLEMENT DATE" shall mean, with respect to the Called
Principal of any Note, the date on which such Called Principal is to be prepaid
pursuant to paragraph 4C or 4F or is declared to be immediately due and payable
pursuant to paragraph 7A, as the context requires.

                    "YIELD-MAINTENANCE AMOUNT" shall mean, with respect to any
Note, an amount equal to the excess, if any, of the Discounted Value of the
Called Principal of such Note over the sum of (i) such Called Principal plus
(ii) interest accrued thereon as of (including interest due on) the Settlement
Date with respect to such Called Principal. The Yield-Maintenance Amount shall
in no event be less than zero.

         10B.       OTHER TERMS.

                    "ACCEPTANCE" shall have the meaning specified in paragraph
2B(5).

                    "ACCEPTANCE DAY" shall have the meaning specified in
paragraph 2B(5).

                    "ACCEPTANCE NOTICE DATE" shall have the meaning specified in
paragraph 4F(iii).

                                       32
<PAGE>   33

                    "ACCEPTANCE WINDOW" shall mean, with respect to any interest
rate quote made by Prudential pursuant to paragraph 2B(4), the time period
designated by Prudential during which the Company may elect to accept such
interest rate quote as to not less than $5,000,000 in aggregate principal amount
of Shelf Notes specified in the related Request for Purchase.

                    "ACCEPTED NOTE" shall have the meaning specified in
paragraph 2B(5).

                    "AFFILIATE" shall mean (i) any Person directly or indirectly
controlling, controlled by, or under direct or indirect common control with such
Person (except, with respect to the Company, a Subsidiary) and (ii) with respect
to Prudential, any investment fund or vehicle for which Prudential or any
Prudential Affiliate acts as investment advisor or portfolio manager. A Person
shall be deemed to control a corporation if such Person possesses, directly or
indirectly, the power to direct or cause the direction of the management and
policies of such corporation, whether through the ownership of voting
securities, by contract or otherwise.

                    "ASSET DISPOSITION PREPAYMENT DATE" shall have the meaning
provided in paragraph 6B(6).

                    "ASSET DISPOSITION PREPAYMENT NOTICE" shall have the meaning
provided in paragraph 6B(6).

                    "AUTHORIZED OFFICER" shall mean (i) in the case of the
Company, a Senior Financial Officer or any officer of the Company designated as
an "Authorized Officer" of the Company for the purpose of this Agreement in an
Officer's Certificate executed by the Company's chief executive officer or chief
financial officer and delivered to Prudential, and (ii) in the case of
Prudential, Scott von Fischer, William Engelking, Julia Buthman, Alfred Sharp
and any vice president of Prudential designated as its "Authorized Officer" for
the purpose of this Agreement in a certificate executed by one of its Authorized
Officers. Any action taken under this Agreement on behalf of the Company by any
individual who on or after the date of this Agreement shall have been an
Authorized Officer of the Company and whom Prudential in good faith believes to
be an Authorized Officer of the Company at the time of such action shall be
binding on the Company even though such individual shall have ceased to be an
Authorized Officer of the Company, and any action taken under this Agreement on
behalf of Prudential by any individual who on or after the date of this
Agreement shall have been an Authorized Officer of Prudential and whom the
Company in good faith believes to be an Authorized Officer of Prudential at the
time of such action shall be binding on Prudential even though such individual
shall have ceased to be an Authorized Officer of Prudential.

                    "AVAILABLE ASSETS" means, with respect to the Company or any
of its Restricted Subsidiaries, as of the date of any determination thereof, the
book value of the assets (other than the capital stock of, or other ownership
interests in, Subsidiaries) of such Person minus the sum of (i) the aggregate
amount of any intercompany receivables owing to such Person from the Company or
any of its Restricted Subsidiaries, (ii) the aggregate amount of any

                                       33
<PAGE>   34

intercompany payables owing by such Person to any Restricted Subsidiary of the
Company that is not a Guarantor and (iii) the aggregate book value of assets of
such Person that are subject to any Lien securing Debt of the Company or any of
its Restricted Subsidiaries other than the Notes.

                    "AVAILABLE FACILITY AMOUNT" shall have the meaning specified
in paragraph 2B(1).

                    "BANKRUPTCY LAW" shall have the meaning specified in clause
(viii) of paragraph 7A.

                    "BUSINESS DAY" shall mean any day other than (i) a Saturday
or a Sunday, (ii) a day on which commercial banks in New York City, Indiana or
Illinois are required or authorized to be closed and (iii) for purposes of
paragraph 2B(3) hereof only, a day on which Prudential is not open for business.

                    "CANCELLATION DATE" shall have the meaning specified in
paragraph 2B(8)(iv).

                    "CANCELLATION FEE" shall have the meaning specified in
paragraph 2B(8)(iv).

                    "CAPITALIZED LEASE OBLIGATION" shall mean any rental
obligation which, under generally accepted accounting principles, is or will be
required to be capitalized on the books of the Company or any Subsidiary, taken
at the amount thereof accounted for as indebtedness (net of interest expenses)
in accordance with such principles.

                    "CHANGE IN CONTROL" shall mean if any person (as such term
is used in section 13(d) and section 14(d)(2) of the Exchange Act as in effect
on the Series I Closing Day), other than a person who is a Company Officer, or
persons constituting a group (as such term is used in Rule 13d-5 under the
Exchange Act), other than a group consisting of Company Officers, become the
"beneficial owners" (as such term is used in Rule 13d-3 under the Exchange Act
as in effect on the Series I Closing Day), directly or indirectly, of more than
50% of the total voting power of all classes then outstanding of the Company's
Voting Stock.

                    "CLOSING DAY" shall mean, with respect to the Series I
Notes, the Series I Closing Day and, with respect to any Accepted Note, the
Business Day specified for the closing of the purchase and sale of such Accepted
Note in the Request for Purchase of such Accepted Note, provided that (i) if the
Company and the Purchaser which is obligated to purchase such Accepted Note
agree on an earlier Business Day for such closing, the "CLOSING DAY" for such
Accepted Note shall be such earlier Business Day, and (ii) if the closing of the
purchase and sale of such Accepted Note is rescheduled pursuant to paragraph
2B(7), the Closing Day for such Accepted Note, for all purposes of this
Agreement except references to "original Closing Day" in paragraph 2B(8)(iii),
shall mean the Rescheduled Closing Day with respect to such Accepted Note.

                                       34
<PAGE>   35

                    "CODE" shall mean the Internal Revenue Code of 1986, as
amended and the rules and regulations promulgated thereunder from time to time.

                    "COMPANY" shall have the meaning specified in the
introductory paragraph.

                    "COMPANY OFFICER" shall mean any individual elected as an
officer of the Company by its Board of Directors and holding that office as of
the Series I Closing Day.

                    "CONFIDENTIAL INFORMATION" shall mean any written
information delivered or made available by or on behalf of the Company or any
Subsidiary to a Purchaser or a Transferee (as the case may be) in connection
with or pursuant to this Agreement which is proprietary in nature and clearly
marked or labeled as being confidential information, but in no event shall
include information (i) which was publicly known or otherwise known to such
Purchaser or Transferee (as the case may be) at the time of disclosure (except
pursuant to disclosure in connection with this Agreement), (ii) which
subsequently becomes publicly known through no act or omission by such Purchaser
or Transferee (as the case may be), or (iii) which otherwise becomes known to
such Purchaser or Transferee, other than through disclosure by the Company or
any Subsidiary or any Person who was not under an obligation of confidentiality
(known or advised to such Purchaser).

                    "CONFIRMATION OF ACCEPTANCE" shall have the meaning
specified in paragraph 2B(5).

                    "CONSOLIDATED ADJUSTED NET WORTH" shall mean, as of any time
of determination thereof, (a) the sum of stockholders' equity, preferred stock,
minority interest and deferred income taxes as of such date, less (b) the
excess, if any, of (i) the amount of goodwill as of such date recorded after the
Series I Closing Day over (ii) 10% of Consolidated Total Assets as of such date;
all determined in accordance with generally accepted accounting principles on a
consolidated basis for the Company and its Restricted Subsidiaries.

                    "CONSOLIDATED NET EARNINGS" shall mean, for any period, the
net earnings of the Company and its Restricted Subsidiaries for such period
excluding: (i) extraordinary gains and losses, and (ii) any equity interest of
the Company in the unremitted earnings to a corporation not a Subsidiary, all
determined in accordance with generally accepted accounting principles on a
consolidated basis for the Company and its Restricted Subsidiaries.

                    "CONSOLIDATED NET INCOME" shall mean with reference to any
period, the net income (or loss) of the Company and its Restricted Subsidiaries
for such period (taken as a cumulative whole), as determined in accordance with
generally accepted accounting principles, after eliminating all offsetting
debits and credits between the Company and its Restricted Subsidiaries and all
other items required to be eliminated in the course of the preparation of
consolidated financial statements of the Company and its Restricted Subsidiaries
in accordance with generally accepted accounting principles.

                                       35
<PAGE>   36

                    "CONSOLIDATED TANGIBLE NET WORTH" shall mean as of the date
of any determination thereof, the arithmetic sum of:

                    (a) the amount of the capital stock accounts (net of
         treasury stock, at cost) plus (or minus in the case of deficit) the
         surplus and retained earnings of the Company and its Restricted
         Subsidiaries,

PLUS

                    (b) minority interests and deferred taxes of the Company and
         its Restricted Subsidiaries,

MINUS

                    (c) the net book value, after deducting any reserves
         applicable thereto, of all items of the following character which are
         included in the assets of the Company and its Restricted Subsidiaries,
         to wit:

                              (i) the incremental increase in an asset resulting
                   from any reappraisal, revaluation or write-up of assets
                   (other than any revaluation or write-up of assets in
                   accordance with generally accepted accounting principles);
                   and

                              (ii) goodwill, patents, patent applications,
                   permits, trademarks, trade names, copyrights, licenses,
                   franchises, experimental expense, organizational expense,
                   unamortized debt discount and expense, the excess of cost of
                   shares acquired over book value of related assets and such
                   other assets as are properly classified as "intangible
                   assets" acquired by the Company or any Restricted Subsidiary
                   after the Series I Closing Day to the extent and in the
                   amount by which the fair market value thereof is in excess of
                   10% of Consolidated Total Assets as of any date of
                   determination of Consolidated Total Assets;

all determined in accordance with generally accepted accounting principles.

                    "CONSOLIDATED TOTAL ASSETS" shall mean, as of any date, the
total assets of the Company and its Restricted Subsidiaries as of such date
determined on a consolidated basis in accordance with generally accepted
accounting principles.

                    "CONSOLIDATED TOTAL CAPITALIZATION" shall mean, as of any
time of determination thereof, the sum of Consolidated Adjusted Net Worth and
the amount of Funded Debt of the Company and its Restricted Subsidiaries
determined on a consolidated basis in accordance with generally accepted
accounting principles.

                                       36
<PAGE>   37

                    "CONTROL EVENT" shall mean (i) the execution by the Company
or any of its Subsidiaries or Affiliates of any agreement or letter of intent
with respect to any proposed transaction or event or series of transactions or
events which, individually or in the aggregate, may reasonably be expected to
result in a Change in Control, (ii) the execution of any written agreement
which, when fully performed by the parties thereto, would result in a Change in
Control, or (iii) the making of any written offer by any person (as such term is
used in section 13(d) and section 14(d)(2) of the Exchange Act as in effect on
the Series I Closing Day) or related persons constituting a group (as such term
is used in Rule 13d-5 under the Exchange Act as in effect on the Series I
Closing Day) to the holders of the common stock of the Company, which offer, if
accepted by the requisite number of such holders, would result in a Change in
Control.

                    "CREDIT AGREEMENT" means that certain Credit Agreement,
dated as of September 30, 1997, among the Company, as borrower, the lenders
party thereto and Bank One, Indiana, N.A. (as successor to NBD Bank, N.A.), as
administrative agent, as amended by Amendment No. 2 to Credit Agreement, dated
as of September 30, 1999, as from time to time further supplemented, amended,
extended, restated or otherwise modified and including any successor or
replacement senior credit facility.

                    "DEBT" shall mean all obligations of the Company or any
Restricted Subsidiary for borrowed money, all Capitalized Lease Obligations of
the Company or any Restricted Subsidiary and, without duplication, all
Guarantees of the Company or any Restricted Subsidiaries, but shall exclude any
unfunded obligations which may exist now and in the future with respect to any
of the Plans.

                    "DELAYED DELIVERY FEE" shall have the meaning specified in
paragraph 2B(8)(iii).

                    "ERISA" shall mean the Employee Retirement Income Security
Act of 1974, as amended and the rules and regulations promulgated thereunder
from time to time in effect.

                    "ERISA AFFILIATE" shall mean any corporation which is a
member of the same controlled group of corporations as the Company within the
meaning of section 414(b) of the Code, or any trade or business which is under
common control with the Company within the meaning of section 414(c) of the
Code.

                    "EVENT OF DEFAULT" shall mean any of the events specified in
paragraph 7A, provided that there has been satisfied any requirement in
connection with such event for the giving of notice, or the lapse of time, or
the happening of any further condition, event or act, and "DEFAULT" shall mean
any of such events, whether or not any such requirement has been satisfied.

                    "EXCESS NET PROCEEDS" shall mean, with respect to any
Transfer of Property, the Net Proceeds from such Transfer to the extent
attributable to Property transferred in excess of the limitation imposed by the
provisions of the introductory paragraph of paragraph 6B(6).

                                       37
<PAGE>   38

                    "EXCHANGE ACT" shall mean the Securities Exchange Act of
1934, as amended.

                    "FACILITY" shall have the meaning specified in paragraph
2B(1).

                    "FAS 125" shall mean Statement of Financial Accounting
Standards No. 125, Accounting for Transfers and Servicing of Financial Assets
and Extinguishments of Liabilities, as promulgated by the Financial Accounting
Standards Board, and any succeeding or supplementary statement, standard, ruling
or interpretation thereto or thereof.

                    "FUNDED DEBT" shall mean all Debt of the Company and its
Restricted Subsidiaries which would, in accordance with generally accepted
accounting principles, constitute long term debt, including, without limitation:

                              (a) any Debt with a maturity of more than one year
                   after the date of creation of such Debt,

                              (b) any Debt outstanding under a revolving credit
                   or similar agreement providing for borrowings (and renewals
                   and extensions thereof) which pursuant to its terms would
                   constitute long term debt in accordance with generally
                   accepted accounting principles,

                              (c) any Capitalized Lease Obligation, and

                              (d) any Guarantee with respect to Funded Debt of
                   another Person.

Notwithstanding anything to the contrary contained in this definition, Funded
Debt at any time shall (i) exclude Debt (whether short term or long term) under
a revolving credit or similar agreement under which there was no Debt
outstanding for a period of 30 consecutive days during the twelve month period
preceding the date of determination, (ii) include all Debt under a revolving
credit or similar agreement (whether short term or long term) with respect to
which there was not a period of 30 consecutive days during the twelve month
period preceding the date of determination during which no Debt was outstanding,
and (iii) exclude all Debt consisting of intercompany loans arising in
connection with a Qualifying Securitization Transaction.

                    "GOVERNMENTAL AUTHORITY" shall mean (a) the government of
(i) the United States of America or any State or other political subdivision
thereof; or (ii) any jurisdiction in which the Company or any Subsidiary
conducts all or any part of its business, or which asserts jurisdiction over any
properties of the Company or any Subsidiary, or (b) any entity exercising
executive, legislative, judicial, regulatory or administrative functions of, or
pertaining to, any such government.

                                       38
<PAGE>   39

                    "GUARANTEE" shall mean, with respect to any Person, any
obligation (except the endorsement in the ordinary course of business of
negotiable instruments for deposit or collection) of such Person guaranteeing or
in effect guaranteeing any indebtedness, dividend or other obligation of any
other Person in any manner, whether directly or indirectly, including (without
limitation) obligations incurred through an agreement, contingent or otherwise,
by such Person:

                              (a) to purchase such indebtedness or obligation or
                   any property constituting security therefor;

                              (b) to advance or supply funds (i) for the
                   purchase or payment of such indebtedness or obligation, or
                   (ii) to maintain any working capital or other balance sheet
                   condition or any income statement condition of any other
                   Person or otherwise to advance or make available funds for
                   the purchase or payment of such indebtedness or obligation;

                              (c) to lease properties or to purchase properties
                   or services primarily for the purpose of assuring the owner
                   of such indebtedness or obligation of the ability of any
                   other Person to make payment of the indebtedness or
                   obligation; or

                              (d) otherwise to assure the owner of such
                   indebtedness or obligation against loss in respect thereof.

In any computation of the indebtedness or other liabilities of the obligor under
any Guarantee, the indebtedness or other obligations that are the subject of
such Guarantee shall be assumed to be direct obligations of such obligor.

                    "GUARANTOR" means each of Wabash National, L.P., a Delaware
limited partnership, Wabash National Finance Corporation, an Indiana corporation
and Fruehauf Trailer Services, Inc., a Delaware corporation (collectively, the
"INITIAL GUARANTORS") and each other Restricted Subsidiary that executes and
delivers a supplement to the Series I Guaranty pursuant to paragraph 6B(10)
hereof.

                    "HEDGE TREASURY NOTE(S)" shall mean, with respect to any
Accepted Note, the United States Treasury Note or Notes whose duration (as
determined by Prudential) most closely matches the duration of such Accepted
Note.

                    "HOSTILE TENDER OFFER" shall mean, with respect to the use
of proceeds of any Note, any offer to purchase, or any purchase of, shares of
capital stock of any corporation or equity interests in any other entity, or
securities convertible into or representing the beneficial ownership of, or
rights to acquire, any such shares or equity interests, if such shares, equity
interests, securities or rights are of a class which is publicly traded on any
securities exchange or in any over-the-counter market, other than purchases of
such shares, equity interests, securities or

                                       39
<PAGE>   40

rights representing less than 5% of the equity interests or beneficial ownership
of such corporation or other entity for portfolio investment purposes, and such
offer or purchase has not been duly approved by the board of directors of such
corporation or the equivalent governing body of such other entity prior to the
date on which the Company makes the Request for Purchase of such Note.

                    "INCLUDING" shall mean, unless the context clearly requires
otherwise, "including without limitation".

                    "INITIAL GUARANTOR" has the meaning set forth in the
definition of "Guarantor".

                    "INTERCREDITOR AGREEMENT" means the Intercreditor Agreement,
dated as of September 30, 1999, among Bank One, Indiana, N.A. (as successor to
NBD Bank, N.A.), as agent for the lenders under the Credit Agreement, the
holders of the Notes and the holders of the Series B-H Notes.

                    "INTERCREDITOR AMENDMENT" shall have the meaning specified
in paragraph 3G.

                    "INVESTMENT" shall mean any loan or advance to, or purchase
or other acquisition of any stock, obligations or securities of or other
interest in, or the making of a capital contribution to, any Person.

                    "ISSUANCE FEE" shall have the meaning specified in paragraph
2B(8)(ii).

                    "ISSUANCE PERIOD" shall have the meaning specified in
paragraph 2B(2).

                    "LIEN" shall mean any mortgage, pledge, security interest,
encumbrance, lien (statutory or otherwise) or charge of any kind (including any
agreement to give any of the foregoing, any conditional sale or other title
retention agreement, any lease in the nature thereof, and the filing of or
agreement to give any financing statement under the Uniform Commercial Code of
any jurisdiction) or any other type of preferential arrangement for the purpose,
or having the effect, of protecting a creditor against loss or securing the
payment or performance of an obligation.

                    "MATERIAL" shall mean material in relation to the business,
operations, affairs, financial conditions, assets or properties of the Company
and its Restricted Subsidiaries taken as a whole.

                    "MULTIEMPLOYER PLAN" shall mean any Plan which is a
"multiemployer plan" (as such term is defined in section 4001(a)(3) of ERISA.

                    "NET PROCEEDS" shall mean, with respect to any Transfer of
any Property by any Person, an amount equal to the excess of (a) the aggregate
amount of all consideration (valued at fair market value of such consideration
at the time of consummation of such Transfer) received

                                       40
<PAGE>   41

by such Person in respect of such Transfer over (b) the ordinary and reasonable
out-of-pocket costs and expenses actually incurred by such Person in connection
with such Transfer.

                    "NOTE GUARANTY" means the unconditional guaranty of payment
of the Series A Notes, dated as of September 30, 1999, executed by the
Guarantors, as the same may from time to time be amended, restated or otherwise
modified.

                    "NOTES" shall have the meaning specified in paragraph 1B.

                    "OFFICER'S CERTIFICATE" shall mean a certificate signed in
the name of the Company by an Authorized Officer of the Company.

                    "PBGC" shall mean the Pension Benefit Guaranty Corporation
referred to and defined in ERISA or any successor thereto.

                    "PERMITTED INVESTMENTS" shall mean:

                              (a) investments in Property to be used in the
                   ordinary course of the Company's or any Restricted
                   Subsidiary's businesses;

                              (b) all investments (whether otherwise Permitted
                   Investments or constituting Restricted Payments) existing on
                   the Series I Closing Day, which investments are set forth on
                   Schedule 6B(8);

                              (c) investments in or advances to Restricted
                   Subsidiaries or corporate entities which simultaneously with
                   the making of such investment become Restricted Subsidiaries;

                              (d) investments in joint ventures or
                   unconsolidated Subsidiaries or Unrestricted Subsidiaries of
                   the Company which do not exceed $500,000 per annum;

                              (e) certificates of deposit with final maturities
                   of one year or less from the date of acquisition thereof
                   issued by United States commercial banks rated "A" or above
                   by either Standard & Poor's Corporation or Moody's Investor
                   Services, Inc. and having combined capital, surplus and
                   undivided profits of at least $100,000,000;

                              (f) commercial paper maturing within 270 days from
                   the date of acquisition thereof and rated at least "A1" by
                   Standard & Poor's Corporation or "P1" by Moody's Investor
                   Services, Inc.;

                                       41
<PAGE>   42

                              (g) direct obligations of the United States of
                   America or of agencies of the United States of America fully
                   guaranteed by the United States of America with final
                   maturities of one year or less from the date of acquisition
                   thereof;

                              (h) money market preferred stock raised "A" or
                   above by either Standard & Poor's Corporation or Moody's
                   Investor Services, Inc. with final maturities of less than
                   two years from the date of acquisition thereof;

                              (i) tax exempt floating rate tender option bonds,
                   backed by a letter of credit issued by a United States
                   commercial bank rated at least "AA" by Standard & Poor's
                   Corporation of "Aa" by Moody's Investor Services;

                              (j) repurchase agreements with a commercial bank
                   described in clause (e) of this definition in respect of
                   investments described in clauses (e), (f), or (g) of this
                   definition if for terms less than one year;

                              (k) money market mutual funds whose investments
                   are solely in those investments of the type described in
                   clauses (e), (f), (g), (h), (i) and (j) of this definition;

                              (l) investments in or advances to a Special
                   Purpose Subsidiary and other intercompany loans and advances,
                   in each case, in connection with a Qualifying Securitization
                   Transaction; and

                              (m) investments in or advances by a Restricted
                   Subsidiary to the Company.

                    "PERSON" shall mean and include an individual, a
partnership, a joint venture, a corporation, a trust, an unincorporated
organization and a government or any department or agency thereof.

                    "PLAN" shall mean any employee pension benefit plan (as such
term is defined in section 3 of ERISA) which is or has been established or
maintained, or to which contributions are or have been made, by the Company or
any ERISA Affiliate.

                    "PRIORITY DEBT" shall mean (i) all Debt of the Company or
any Restricted Subsidiary secured by a Lien on any Property of the Company or
any Restricted Subsidiary, excluding Debt secured by Liens permitted by clauses
(a), (b), (c) (e), (f), (g) or (h) of paragraph 6B(1) but including Debt secured
by Liens permitted by clauses (d) and (i) of paragraph 6B(1), and (ii) all Debt
of Restricted Subsidiaries (excluding Debt secured by Liens permitted by clauses
(a), (b), (c), (e), (f), (g) or (h) of paragraph 6B(1) and Debt permitted by
subclauses (e) and (f) of paragraph 6B(2)).

                                       42
<PAGE>   43

                    "PROPERTY" shall mean, unless otherwise specifically
limited, real or personal property of any kind, tangible or intangible, choate
or inchoate.

                    "PROPOSED PREPAYMENT DATE" shall have the meaning specified
in paragraph 4F(ii).

                    "PRUCO" shall mean Pruco Life Insurance Company.

                    "PRUDENTIAL" shall mean The Prudential Insurance Company of
America.

                    "PRUDENTIAL AFFILIATE" shall mean any Affiliate of
Prudential.

                    "PURCHASERS" shall mean Prudential and Pruco with respect to
the Series I Notes and, with respect to any Accepted Notes, Prudential and/or
the Prudential Affiliate(s), which are purchasing such Accepted Notes.

                    "QUALIFYING RECEIVABLES" shall mean indebtedness and other
obligations owed to the Company or any Subsidiary, whether constituting
accounts, chattel paper, instruments or general intangibles, arising in
connection with the sale of semi-trailers and related parts and services by the
Company or such Subsidiary to commercial customers, including, without
limitation, the obligation to pay any finance charges with respect thereto.

                    "QUALIFYING SECURITIZATION TRANSACTION" shall mean the
Transfer or pledge (including the granting of a security interest) of Qualifying
Receivables by the Company or a Subsidiary, and any related pledges or grants of
security interests, in a transaction which (i) results in the Company or such
Subsidiary being permitted under FAS 125 (as in effect on the date of the
consummation of the transaction in question) to derecognize such Qualifying
Receivables in the preparation of the financial statements of the Company or
such Subsidiary, and (ii) is effected under such terms and conditions as are
customary in transactions of a similar nature.

                    "RELINQUISHING HOLDER" shall have the meaning specified in
paragraph 4F(v).

                    "REQUEST FOR PURCHASE" shall have the meaning specified in
paragraph 2B(3).

                    "REQUIRED HOLDER(S)" shall mean the holder or holders of at
least 51% of the aggregate principal amount of the Notes or of a Series of
Notes, as the context may require, from time to time outstanding.

                    "RESCHEDULED CLOSING DAY" shall have the meaning specified
in paragraph 2B(7).

                                       43
<PAGE>   44

                    "RESPONSIBLE OFFICER" shall mean any Senior Financial
Officer or any other officer of the Company involved principally in its
financial administration or its controllership function.

                    "RESTRICTED PAYMENT AMOUNT" shall mean (a) for the first
fiscal quarter ending after the Series I Closing Day, $40,000,000, and (b) for
each subsequent fiscal quarter, the amount equal to the following: (i) the
Restricted Payment Amount for the immediately preceding fiscal quarter, (ii)
plus 75% (or minus 100% in the event of a deficit) of Consolidated Net Earnings
for the immediately preceding fiscal quarter, (iii) plus the net cash proceeds
received by the Company during the immediately preceding fiscal quarter from any
sale by the Company of any class of capital stock of the Company or from any
cash capital contribution to the Company, (iv) plus the net cash proceeds
received by the Company or any Restricted Subsidiary during the immediately
preceding fiscal quarter from the liquidation (whether at maturity, by sale or
otherwise) of any Investment not constituting a Permitted Investment, and (v)
minus the aggregate amount of all Restricted Payments made during the
immediately preceding fiscal quarter.

                    "RESTRICTED PAYMENTS" shall mean (a) any payment or
declaration of any dividend or any other distribution on account of any class of
stock (except dividends or stock splits payable solely in the common stock of
the Company), (b) redemptions, purchases or other acquisitions (direct or
indirect) of any capital stock; and (c) any Investments not constituting
Permitted Investments. As used in this definition, the term "capital stock"
shall include warrants, rights and options to purchase capital stock. Any
Restricted Payment made in Property other than cash shall, for the purposes of
determining the amount thereof for all purposes of this Agreement, be valued at
the greater of such Property's book value or fair market value at the time such
Restricted Payment is made.

                    "RESTRICTED SUBSIDIARY" shall mean any Subsidiary (a) so
designated by the Company in writing to the holders of the Notes as a Restricted
Subsidiary, and (b) of which more than 50% (by number of votes) of the Voting
Stock is owned by the Company and/or one or more Restricted Subsidiaries. All
Subsidiaries not designated as Unrestricted Subsidiaries shall be deemed to be
Restricted Subsidiaries.

                    "REVOLVER GUARANTY" means that certain Guaranty, dated as of
September 30, 1999, by the Initial Guarantors in favor of Bank One, Indiana,
N.A. (as successor to NBD Bank, N.A.), as administrative agent under the Credit
Agreement, as amended, restated or otherwise modified from time to time
(including, without limitation, to add additional Subsidiaries of the Company as
guarantors pursuant to the terms of the Credit Agreement).

                    "SECONDARY ASSET DISPOSITION PREPAYMENT NOTICE" shall have
the meaning provided in paragraph 6B(6).

                    "SECURITIES ACT" shall mean the Securities Act of 1933, as
amended.

                                       44
<PAGE>   45

                    "SENIOR FINANCIAL OFFICER" shall mean the chief financial
officer, principal accounting officer, treasurer or comptroller of the Company.

                    "SENIOR FUNDED DEBT" shall mean, with respect to any Person,
Funded Debt of such Person which is not expressed to be subordinate or junior in
rank to any other Funded Debt of such Person.

                    "SERIES" shall have the meaning specified in paragraph 1B.

                    "SERIES A NOTE AGREEMENT" means the Note Purchase Agreement
dated as of January 31, 1996 between the Company and the purchasers listed
therein pursuant to which the Company issued the Series A Notes.

                    "SERIES A NOTES" shall mean the $50,000,000 6.41% Senior A
Notes issued by the Company on January 31, 1996.

                    "SERIES B-H NOTES" means, collectively, the Company's (a)
$8,000,000 aggregate principal amount 6.99% Senior Notes, Series B, due December
17, 2001, (b) $22,000,00 aggregate principal amount Designated Rate Senior
Notes, Series C, due March 13, 2002, (c) 49,000,000 aggregate principal amount
7.31% Senior Notes, Series D, due December 17, 2004, (d) $3,000,000 aggregate
principal amount Designated Rate Senior Notes, Series E, due March 13, 2005, (e)
$13,000,000 aggregate principal amount 7.47% Senior Notes, Series F, due
December 17, 2006, (f) $20,000,000 aggregate principal amount 7.53% Senior
Notes, Series G, due December 30, 2008, and (g) $25,000,000 aggregate principal
amount 7.55% Senior Notes, Series H, due December 17, 2008.

                    "SERIES I CLOSING DAY" shall have the meaning specified in
paragraph 2A.

                    "SERIES I GUARANTY" shall have the meaning specified in
paragraph 3F.

                    "SERIES I NOTE(S)" shall have the meaning specified in
paragraph 1A.

                    "SHELF NOTES" shall have the meaning specified in paragraph
1B.

                    "SIGNIFICANT HOLDER" shall mean (i) Prudential, so long as
Prudential or any Prudential Affiliate shall hold (or be committed under this
Agreement to purchase) any Note, and (ii) any other holder of at least 10% of
the aggregate principal amount of the Notes from time to time outstanding.

                    "SPECIAL PURPOSE SUBSIDIARY" means any Subsidiary created as
a special purpose entity in connection with a Qualifying Securitization
Transaction."

                    "STRUCTURING FEE" shall have the meaning specified in
paragraph 2B(8)(i).

                                       45
<PAGE>   46

                    "SUBSIDIARY" shall mean any corporation of which at least
51% of the total combined voting power of all classes of Voting Stock of which
shall, at the time as of which any determination is being made, be owned by the
Company either directly or through Subsidiaries.

                    "TANGIBLE ASSETS" shall mean as of any determination
thereof, with respect to any Person, total assets of such Person in accordance
with generally accepted accounting principles, but excluding therefrom goodwill,
patents, patent applications, permits, trademarks, trade names, copyrights,
licenses, franchises, experimental expense, organizational expense, unamortized
debt discount and expense, the excess of cost of shares acquired over book value
of related assets and such other assets as are properly classified as
`intangible assets' in accordance with generally accepted accounting principles.

                    "TRANSFER" shall mean, with respect to any Property, the
sale, exchange, conveyance, lease, transfer or other disposition of such
Property.

                    "TRANSFEREE" shall mean any direct or indirect transferee of
all or any part of any Note purchased by any Purchaser under this Agreement.

                    "UNRESTRICTED SUBSIDIARY" shall mean (a) any Subsidiary so
designated by the Company in writing to the holders of the Notes as an
Unrestricted Subsidiary, (b) any Subsidiary not meeting the definition of a
Restricted Subsidiary, and (c) Wabash National Funding Corporation and its
successors and assigns. Notwithstanding the foregoing, (i) no designation of a
Subsidiary as a Restricted Subsidiary shall be made if, immediately after giving
effect to such designation on Default or an Event of Default would exist or the
Company would be unable to incur at least $1.00 of additional Funded Debt under
paragraph 6B(2), and (ii) no Subsidiary may have its designation as an
Unrestricted Subsidiary or a Restricted Subsidiary changed more than one time.

                    "VALUE" shall mean, with respect to any Property on any
date, the greater of the book value of such Property on such date or the fair
market value of such Property on such date.

                    "VOTING STOCK" shall mean, with respect to any corporation,
any shares of stock of such corporation whose holders are entitled under
ordinary circumstances to vote for the election of directors of such
corporation, or persons performing similar functions (irrespective of whether at
the time stock of any other class or classes shall have or might have voting
power by reason of the happening of any contingency).

                    "WABASH FINANCE" shall mean Wabash National Finance
Corporation, or any entity which is a legal successor thereto.

                    "WHOLLY-OWNED RESTRICTED SUBSIDIARY" shall mean any
Restricted Subsidiary all of the stock of every class of which is, at the time
as of which any determination is being made, owned by the Company either
directly or through a Wholly-Owned Restricted Subsidiary.

                                       46
<PAGE>   47

         10C.       ACCOUNTING PRINCIPLES, TERMS AND DETERMINATIONS. All
references in this Agreement to "generally accepted accounting principles" shall
be deemed to refer to generally accepted accounting principles in effect in the
United States at the time of application thereof. Unless otherwise specified
herein, all accounting terms used herein shall be interpreted, all
determinations with respect to accounting matters hereunder shall be made, and
all unaudited financial statements and certificates and reports as to financial
matters required to be furnished hereunder shall be prepared, in accordance with
generally accepted accounting principles applied on a basis consistent with the
most recent audited financial statements delivered pursuant to clause (ii) of
paragraph 5A or, if no such statements have been so delivered, the most recent
audited financial statements referred to in clause (i) of paragraph 8B. Any
reference herein to any specific law, statute, rule or regulation shall refer to
such law, statute, rule or regulation as the same may be may be modified,
amended or replaced from time to time.

         11.        MISCELLANEOUS.

         11A.       NOTE PAYMENTS. The Company agrees that, so long as any
Purchaser shall hold any Note, it will make payments of principal of, interest
on, and any Yield-Maintenance Amount payable with respect to, such Note, which
comply with the terms of this Agreement, by wire transfer of immediately
available funds for credit (not later than 12:00 noon, New York City local time,
on the date due) to (i) the account or accounts of such Purchaser specified in
the Purchaser Schedule attached hereto in the case of any Series I Note, (ii)
the account or accounts of such Purchaser specified in the Confirmation of
Acceptance with respect to such Note in the case of any Shelf Note or (iii) such
other account or accounts in the United States as such Purchaser may from time
to time designate in writing, notwithstanding any contrary provision herein or
in any Note with respect to the place of payment. Each Purchaser agrees that,
before disposing of any Note, it will make a notation thereon (or on a schedule
attached thereto) of all principal payments previously made thereon and of the
date to which interest thereon has been paid. The Company agrees to afford the
benefits of this paragraph 11A to any Transferee which shall have made the same
agreement as the Purchasers have made in this paragraph 11A.

         11B.       EXPENSES. The Company agrees, whether or not the
transactions contemplated hereby shall be consummated, to pay, and save
Prudential, each Purchaser and any Transferee harmless against liability for the
payment of, all out-of-pocket expenses arising in connection with such
transactions, including (i) all document production and duplication charges and
the fees and expenses of any special counsel engaged by the Purchasers or any
Transferee in connection with this Agreement, the transactions contemplated
hereby and any subsequent proposed modification of, or proposed consent under,
this Agreement, whether or not such proposed modification shall be effected or
proposed consent granted, (ii) the costs and expenses, including attorneys'
fees, incurred by any Purchaser or any Transferee in enforcing (or determining
whether or how to enforce) any rights under this Agreement or the Notes or in
responding to any subpoena or other legal process or informal investigative
demand issued in connection with this Agreement or the transactions contemplated
hereby or by reason of any Purchaser's or any Transferee's having acquired any
Note, including without limitation costs and expenses (including

                                       47
<PAGE>   48

financial advisors' fees) incurred in any bankruptcy case or in connection with
any work-out or restructuring of the transactions contemplated hereby and by the
Notes. The obligations of the Company under this paragraph 11B shall survive the
transfer of any Note or portion thereof or interest therein by any Purchaser or
any Transferee, the payment of any Note, the enforcement, amendment or waiver of
any provision of this Agreement or the Notes, and the termination of this
Agreement.

         11C.       CONSENT TO AMENDMENTS. This Agreement may be amended, and
the Company may take any action herein prohibited, or omit to perform any act
herein required to be performed by it, if the Company shall obtain the written
consent to such amendment, action or omission to act, of the Required Holder(s)
of the Notes of each Series except that, (i) with the written consent of the
holders of all Notes of a particular Series, and if an Event of Default shall
have occurred and be continuing, of the holders of all Notes of all Series, at
the time outstanding (and such written consents), the Notes of such Series may
be amended or the provisions thereof waived to change the maturity thereof, to
change or affect the principal thereof, or to change or affect the rate or time
of payment of interest on or any Yield-Maintenance Amount payable with respect
to the Notes of such Series, (ii) without the written consent of the holder or
holders of all Notes at the time outstanding, no amendment to or waiver of the
provisions of this Agreement shall change or affect the provisions of paragraph
7A or this paragraph 11C insofar as such provisions relate to proportions of the
principal amount of the Notes of any Series, or the rights of any individual
holder of Notes, required with respect to any declaration of Notes to be due and
payable or with respect to any consent, amendment, waiver or declaration, (iii)
with the written consent of Prudential (and without the consent of any other
holder of the Notes) the provisions of paragraph 2B may be amended or waived
(except insofar as any such amendment or waiver would affect any rights or
obligations with respect to the purchase and sale of Notes which shall have
become Accepted Notes prior to such amendment or waiver), and (iv) with the
written consent of all of the Purchasers which shall have become obligated to
purchase Accepted Notes of any Series (and not without the written consent of
all such Purchasers), any of the provisions of paragraphs 2B and 3 may be
amended or waived insofar as such amendment or waiver would affect only rights
or obligations with respect to the purchase and sale of the Accepted Notes of
such Series or the terms and provisions of such Accepted Notes. Each holder of
any Note at the time or thereafter outstanding shall be bound by any consent
authorized by this paragraph 11C, whether or not such Note shall have been
marked to indicate such consent, but any Notes issued thereafter may bear a
notation referring to any such consent. No course of dealing between the Company
and the holder of any Note nor any delay in exercising any rights hereunder or
under any Note shall operate as a waiver of any rights of any holder of such
Note. As used herein and in the Notes, the term "THIS AGREEMENT" and references
thereto shall mean this Agreement as it may from time to time be amended or
supplemented.

         11D.       FORM, REGISTRATION, TRANSFER AND EXCHANGE OF NOTES; LOST
NOTES. The Notes are issuable as registered notes without coupons in
denominations of at least $1,000,000, except as may be necessary to reflect any
principal amount not evenly divisible by $1,000,000; provided, however, that no
such minimum denomination shall apply to Notes issued upon transfer by any
holder of the Notes to Prudential or Prudential Affiliates or to any other
entity or group of

                                       48
<PAGE>   49

affiliates with respect to which the Notes so issued or transferred shall be
managed by a single entity. The Company shall keep at its principal office a
register in which the Company shall provide for the registration of Notes and of
transfers of Notes. Upon surrender for registration of transfer of any Note at
the principal office of the Company, the Company shall, at its expense, execute
and deliver one or more new Notes of like tenor and of a like aggregate
principal amount, registered in the name of such transferee or transferees. At
the option of the holder of any Note, such Note may be exchanged for other Notes
of like tenor and of any authorized denominations, of a like aggregate principal
amount, upon surrender of the Note to be exchanged at the principal office of
the Company. Whenever any Notes are so surrendered for exchange, the Company
shall, at its expense, execute and deliver the Notes which the holder making the
exchange is entitled to receive. Each prepayment of principal payable on each
prepayment date upon each new Note issued upon any such transfer or exchange
shall be in the same proportion to the unpaid principal amount of such new Note
as the prepayment of principal payable on such date on the Note surrendered for
registration of transfer or exchange bore to the unpaid principal amount of such
Note. No reference need be made in any such new Note to any prepayment or
prepayments of principal previously due and paid upon the Note surrendered for
registration of transfer or exchange. Every Note surrendered for registration of
transfer or exchange shall be duly endorsed, or be accompanied by a written
instrument of transfer duly executed, by the holder of such Note or such
holder's attorney duly authorized in writing. Any Note or Notes issued in
exchange for any Note or upon transfer thereof shall carry the rights to unpaid
interest and interest to accrue which were carried by the Note so exchanged or
transferred, so that neither gain nor loss of interest shall result from any
such transfer or exchange. Upon receipt of written notice from the holder of any
Note of the loss, theft, destruction or mutilation of such Note and, in the case
of any such loss, theft or destruction, upon receipt of such holder's unsecured
indemnity agreement, or in the case of any such mutilation upon surrender and
cancellation of such Note, the Company will make and deliver a new Note, of like
tenor, in lieu of the lost, stolen, destroyed or mutilated Note.

         11E.      PERSONS DEEMED OWNERS; PARTICIPATIONS. Prior to due
presentment for registration of transfer, the Company may treat the Person in
whose name any Note is registered as the owner and holder of such Note for the
purpose of receiving payment of principal of and interest on, and any
Yield-Maintenance Amount payable with respect to, such Note and for all other
purposes whatsoever, whether or not such Note shall be overdue, and the Company
shall not be affected by notice to the contrary. Subject to the preceding
sentence, the holder of any Note may from time to time grant participations in
all or any part of such Note to any Person on such terms and conditions as may
be determined by such holder in its sole and absolute discretion.

         11F.      SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT.
All representations and warranties contained herein or made in writing by or on
behalf of the Company in connection herewith shall survive the execution and
delivery of this Agreement and the Notes, the transfer by any Purchaser of any
Note or portion thereof or interest therein and the payment of any Note, and may
be relied upon by any Transferee, regardless of any investigation made at any
time by or on behalf of any Purchaser or any Transferee. Subject to the
preceding sentence, this Agreement and the Notes embody the entire agreement and
understanding between the parties

                                       49
<PAGE>   50

hereto with respect to the subject matter hereof and supersede all prior
agreements and understandings relating to such subject matter.

         11G.       SUCCESSORS AND ASSIGNS. All covenants and other agreements
in this Agreement contained by or on behalf of any of the parties hereto shall
bind and inure to the benefit of the respective successors and assigns of the
parties hereto (including, without limitation, any Transferee) whether so
expressed or not.

         11H.       INDEPENDENCE OF COVENANTS. All covenants hereunder shall be
given independent effect so that if a particular action or condition is
prohibited by any one of such covenants, the fact that it would be permitted by
an exception to, or otherwise be in compliance within the limitations of,
another covenant shall not avoid (i) the occurrence of a Default or Event of
Default if such action is taken or such condition exists or (ii) in any way
prejudice an attempt by the holder of any Note to prohibit through equitable
action or otherwise the taking of any action by the Company or any Subsidiary
which would result in a Default or Event of Default.

         11I.       NOTICES. All written communications provided for hereunder
(other than communications provided for under paragraph 2) shall be sent by
first class mail or nationwide overnight delivery service (with charges prepaid)
and (i) if to any Purchaser, addressed as specified for such communications in
the Purchaser Schedule attached hereto (in the case of the Series I Notes) or
the Purchaser Schedule attached to the applicable Confirmation of Acceptance (in
the case of any Shelf Notes) or at such other address as any such Purchaser
shall have specified to the Company in writing, (ii) if to any other holder of
any Note, addressed to it at such address as it shall have specified in writing
to the Company or, if any such holder shall not have so specified an address,
then addressed to such holder in care of the last holder of such Note which
shall have so specified an address to the Company and (iii) if to the Company,
addressed to it at 1000 Sagamore Parkway South, Lafayette, Indiana 47905,
Attention: Chief Financial Officer, provided, however, that any such
communication to the Company may also, at the option of the Person sending such
communication, be delivered by any other means either to the Company at its
address specified above or to any Authorized Officer of the Company. Any
communication pursuant to paragraph 2 shall be made by the method specified for
such communication in paragraph 2, and shall be effective to create any rights
or obligations under this Agreement only if, in the case of a telephone
communication, an Authorized Officer of the party conveying the information and
of the party receiving the information are parties to the telephone call, and in
the case of a telecopier communication, the communication is signed by an
Authorized Officer of the party conveying the information, addressed to the
attention of an Authorized Officer of the party receiving the information, and
in fact received at the telecopier terminal the number of which is listed for
the party receiving the communication in the Information Schedule or at such
other telecopier terminal as the party receiving the information shall have
specified in writing to the party sending such information.

         11J.       PAYMENTS DUE ON NON-BUSINESS DAYS. Anything in this
Agreement or the Notes to the contrary notwithstanding, any payment of principal
of or interest on, or Yield-Maintenance Amount payable with respect to, any Note
that is due on a date other than a Business

                                       50
<PAGE>   51

Day shall be made on the next succeeding Business Day. If the date for any
payment is extended to the next succeeding Business Day by reason of the
preceding sentence, the period of such extension shall be included in the
computation of the interest payable on such Business Day.

         11K.       SEVERABILITY. 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 without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

         11L.       DESCRIPTIVE HEADINGS. The descriptive headings of the
several paragraphs of this Agreement are inserted for convenience only and do
not constitute a part of this Agreement.

         11M.       SATISFACTION REQUIREMENT. If any agreement, certificate or
other writing, or any action taken or to be taken, is by the terms of this
Agreement required to be satisfactory to any Purchaser, to any holder of Notes
or to the Required Holder(s), the determination of such satisfaction shall be
made by such Purchaser, such holder or the Required Holder(s), as the case may
be, in the sole and exclusive judgment (exercised in good faith) of the Person
or Persons making such determination.

         11N.       GOVERNING LAW. THIS AGREEMENT SHALL BE CONSTRUED AND
ENFORCED IN ACCORDANCE WITH, AND THE RIGHTS OF THE PARTIES SHALL BE GOVERNED BY,
THE INTERNAL LAW OF THE STATE OF ILLINOIS.

         11O.       SEVERALTY OF OBLIGATIONS. The sales of Notes to the
Purchasers are to be several sales, and the obligations of Prudential and the
Purchasers under this Agreement are several obligations. No failure by
Prudential or any Purchaser to perform its obligations under this Agreement
shall relieve any other Purchaser or the Company of any of its obligations
hereunder, and neither Prudential nor any Purchaser shall be responsible for the
obligations of, or any action taken or omitted by, any other such Person
hereunder.

         11P.       COUNTERPARTS. This Agreement may be executed in any number
of counterparts, each of which shall be an original, but all of which together
shall constitute one instrument.

         11Q.       DISCLOSURE TO OTHER PERSONS. Each Purchaser (and each
Transferee by its acceptance of an interest in any Note) agrees to use its
reasonable best efforts to hold in confidence and not disclose any Confidential
Information; provided, however, that nothing contained herein shall prevent the
holder of any Note from delivering copies of any financial statements and other
documents delivered to such holder, and disclosing any other information
disclosed to such holder, by the Company or any Subsidiary in connection with or
pursuant to this Agreement to (i) such holder's directors, officers, employees,
agents and professional consultants, (ii) any other holder of any Note, (iii)
any Person to which such holder offers to sell such Note or any part thereof,
(iv) any Person to which such holder sells or offers to sell a participation in
all or any part of such Note,

                                       51
<PAGE>   52

(v) any federal or state regulatory authority having jurisdiction over such
holder, (vi) the National Association of Insurance Commissioners or any similar
organization or any nationally recognized rating agency or (vii) any other
Person to which such delivery or disclosure may be reasonably necessary or
appropriate (a) in compliance with any law, rule, regulation or order applicable
to such holder, (b) in response to any subpoena or other legal process or
investigative demand, (c) in connection with any litigation in connection with
this Agreement to which such holder is a party or (d) in order to protect such
holder's investment and enforce the rights of such holder under this Agreement;
and provided further that after notice to the Company the holders of the Notes
shall be free to correct any false or misleading information which may become
public concerning their relationship to the Company or any of its Subsidiaries.

            [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

                                       52
<PAGE>   53

         11R.       BINDING AGREEMENT. When this Agreement is executed and
delivered by the Company and Prudential, it shall become a binding agreement
between the Company and Prudential. This Agreement shall also inure to and each
such Purchaser shall be bound by this Agreement to the extent provided in such
Confirmation of Acceptance.

                                              Very truly yours,

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

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

The foregoing Agreement is
hereby accepted as of the
date first above written.

THE PRUDENTIAL INSURANCE
  COMPANY OF AMERICA

By:
   -----------------------------
       Vice President

PRUCO LIFE INSURANCE COMPANY

By:
   -----------------------------
       Vice President

                                       53<PAGE>   1
                                                                    EXHIBIT 10.1

1.       BASIC LEASE PROVISIONS:

<TABLE>
<S>                                                   <C>
A.       Building Address:                            2101 So. Arlington Heights Road
                                                      Arlington Heights, Illinois  60005

B.       Landlord and Address:                        LaSalle Bank National Association, Successor Trustee
                                                      to American National Bank and Trust Company of
                                                      Chicago As Trustee Under Trust No. 59948

                                                      c/o Liz-Green, Inc.
                                                      2101 So. Arlington Heights Road
                                                      Arlington Heights, Illinois  60005

C.       Tenant and Current Address:                  Security Associates International, Inc.
                                                      ----------------------------------------------------
                                                      2101 So. Arlington Heights Rd.  #100
                                                      ----------------------------------------------------
                                                      Arlington Heights, Illinois  60005
                                                      ----------------------------------------------------

D.       Date of Lease:                               August 12, 2000
                                                      ----------------------------------------------------

E.       Length of Lease Term:                        Ten (10) years
                                                      ----------------------------------------------------

F.       Commencement Date of Term:                   January 1, 2001
                                                      ----------------------------------------------------

G.       Expiration Date of Term:                     December 31, 2010
                                                      ----------------------------------------------------

H.       Annual Net Base Rent:                        See Exhibit "A"
                                                      ----------------------------------------------------

I.       Actual Combined Operating
         & Real Estate Tax Adjustment:                See Exhibit "A"
                                                      ----------------------------------------------------

J.       Rentable Area of Premises:                   18,233   Square Feet
                                                      ----------------------------------------------------

K.       Rentable Area of Building:                   61,733  Square Feet
                                                      ----------------------------------------------------
L.       Tenant's Proportionate
         Share:                                       29.54% (Percent)
                                                      ----------------------------------------------------
M.       Security Deposit:                            None

N.       Suite Numbers of Premises:                   Suite #150 and Suite #145
                                                      ----------------------------------------------------

O.       Broker                                       Liz-Green, Inc.
                                                      ----------------------------------------------------

P.       Exhibits:                                    Exhibit A - Annual Rent Schedule
                                                      ----------------------------------------------------
                                                      Exhibit B - Cleaning Specifications
                                                      ----------------------------------------------------
                                                      Exhibit C - Rules & Regulations
                                                      ----------------------------------------------------
                                                      Exhibit D - Space Plan Of Premises
                                                      ----------------------------------------------------
                                                      Exhibit E - Scope Of Work Clarifications
                                                      ----------------------------------------------------
</TABLE>

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2. LEASING AGREEMENT. LaSalle Bank National Association, Successor Trustee to
American National Bank and Trust Company of Chicago, As Trustee Under Trust No.
59948 (the "Landlord") and the beneficiaries of a certain Trust Agreement dated
December 15, 1983, and known as Trust Number 59948 at LaSalle Bank National
Association (the "Beneficiary") leases to Tenant and Tenant leases from Landlord
the premises (the "Premises") which are or will be contained in the building
(the "Building") located at 2101 South Arlington Heights Road, Arlington
Heights, Illinois 60005. The terms of this lease (the "Term") shall commence on
the date (the "Commencement Date") which is the earlier to occur of the date
stated in Paragraph lF, or the date Tenant first occupies all or part of the
Premises for the conduct of business. The Term shall expire on the date (the
"Expiration Date") stated in Paragraph 1G, unless terminated earlier as
otherwise provided in this Lease.

3. SERVICES.

A. Basic Services. Landlord shall furnish the following services, subject to
applicable laws and governmental restrictions and to the other provisions of
this Lease:

(1) Cooled and heated air in season of all common areas within the Building,
daily from 7:30 A.M. to 6:00 P.M. (Saturdays from 8:00 A.M. to 1:00 P.M.),
Sundays and holidays excepted. These utility costs are a part of the Building's
operating expense as more fully described in 7.A.(1).

(2) Customary maintenance and repair of the exterior portion of the Building
(including the roof), the parking area for the Building, the common areas of the
Building and, subject to Tenant's obligations under subsections (1), (2) and (3)
of Paragraph 3B below, the structural, mechanical, plumbing and electrical
systems of the Building.

(3) Cold water for drinking, lavatory and toilet purposes drawn through fixtures
installed by Landlord, or by Tenant with Landlord's written consent and hot
water for lavatory purposes drawn from regular Building supply at the prevailing
temperatures. Tenant shall pay Landlord at rates fixed by Landlord for water
furnished for any other purpose.

(4) Customary janitor service in and about the common areas within the Building,
Monday through Friday; Saturdays, Sundays and holidays excepted. Attached to
this Lease as Exhibit "B" are the current cleaning specifications for the
Building, all of which Tenant hereby agrees shall be deemed to be reasonable.

(5) Washing of the windows in the common areas of the Building and washing of
the exterior windows in the Premises shall be furnished periodically at such
times as Landlord in its discretion shall determine.

(6) Lighting of common areas of the Building's West wing during the Building's
normal hours will be as specified in subsection (1) of this Paragraph 3A.
Lighting of common areas of the Building's East wing will remain on (24) twenty
four hours per day, (7) seven days per week. Parking lot lighting of exterior
parking lot at Building's East wing shall have those light standards illuminated
as required by time of year from 5:00 p.m. to 9:00 a.m. C.S.T.

(7) Clearance of snow from the parking lot and sidewalks serving the Building at
such times as Landlord in its discretion shall determine.

(8) Landscaping of the plants and foliage in the common areas of the Building at
such times as Landlord in its discretion shall determine.

(9) Exterior paved parking area with spaces available for Tenant's use on a
first-come, first-serve basis and for use by Landlord and its agents and other
tenants, guests and invitees, including rubbish removal and cartage in and about
the premises Mondays through Saturday both inclusive, Sundays and holidays
excluded.

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B. Tenant's Utilities and Certain Services.

(1) Electricity shall not be furnished by Landlord, but shall be furnished by
the approved electric utility company serving the Building. Landlord shall
permit Tenant to receive such service directly from such utility company at
Tenant's cost and shall permit Landlord's wire and conduits, to the extent
available, suitable and safely capable, to be used for such purposes. The
Premises shall contain two (2) electrical meters installed at Landlord's
expense, one for heating and air conditioning and the other for lighting and
outlets. Tenant shall make all necessary arrangements with the utility company
for paying for electric current furnished by the utility company to the Premises
and Tenant shall pay for all charges for all electric current consumed in the
Premises, including without limitation, performance of janitor service, the
making of any alterations or repairs in the Premises, the operation of all
heating, ventilating and air conditioning systems and the operation of all other
systems which may be required for telephone or data processing equipment, and
for other special equipment or machinery installed by Tenant.

(2) Tenant agrees to purchase from Landlord, all lamps, bulbs, ballast's and
starters used in the Premises after the initial installation of same.

(3) Heating and air conditioning equipment currently installed servicing the
Premises shall be repaired and maintained at Landlord's sole cost, this also
includes replacement of filters within the heating and air conditioning
equipment. Tenant shall maintain a temperature in the Premises at all times
during the Term of not less than 55 degrees Fahrenheit. In the event any heating
or air conditioning equipment servicing the Premises requires replacement as a
result of Tenant's failure to permit Landlord to perform its obligations under
this subsection (3) of Paragraph 3B or to notify Landlord of any malfunction or
other problem of such equipment, then Tenant also shall bear the cost of the
replacement of such equipment.

(4) Heating and air conditioning equipment to be installed by Tenant which will
serve the to be constructed UPS room and Call Center rooms will be repaired and
maintained at the sole cost of the Tenant.

(5) Any emergency back up generators and UPS systems shall repaired and
maintained at the sole cost of the Tenant.

(6) Tenant shall make arrangements directly with the Telephone company servicing
the Building for such telephone service in the Premises as is, desired by Tenant
and the cost of all such telephone service (including the cost of installing all
wires and cables) shall be paid for by Tenant.

(7) If Tenant desires telegraphic, burglar alarm, computer installations or
signal service, Landlord shall upon request of Tenant direct where and how all
connections for such service shall be introduced and run. In the absence of such
directions, Tenant shall make no borings, cutting or installation of wires or
cables in or about the Premises. The cost of all such installations and service
shall be paid for by Tenant.

C. Additional Services. Landlord shall in no event be obligated to furnish any
services or utilities, other than those stated in Paragraph 3A. If Landlord
elects to furnish services or utilities requested by Tenant in addition to those
stated in Paragraph 3A (including utility services in the common areas of the
Building at times other than those stated in Paragraph 3A), Tenant shall pay to
Landlord Landlord's then prevailing charges for such services and utilities
within thirty (30) days after receipt of Landlord's statements. If Tenant shall
fail to make any such payment, Landlord may, without notice to Tenant and in
addition to all other remedies available to Landlord, discontinue any or all of
the additional services. No discontinuance of any service under this Paragraph
3C shall result in any liability of Landlord to Tenant or be considered as an
eviction or a disturbance of Tenant's use of the Premises.

D. Failures or delays in furnishing services.

(1) Tenant agrees that Landlord shall not be liable for damages for any failure,
delay or interruption in the furnishing of any of the services described in
Paragraphs 3B or 3C above, if such failure delay or interruption shall be
remedied within 96 hours and that during such periods, the interior temperature
of the Premises shall not exceed 90 degrees F nor fall below 55 degrees F.

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<PAGE>   4

(2) Tenant agrees that Landlord shall not be liable for damages for any failure
to furnish or delay in furnishing any service stated in Paragraph 3A if such
failure or delay is caused, in whole or in part, by any one or more of the
events stated in Paragraph (24 I).

(3) No failure or delay in furnishing any service stated in Paragraph 3A, 3B or
3C caused in whole or in part by any one or more of the events stated in
Paragraph (24 I), shall not be considered to be an eviction or disturbance of
Tenant's use of the Premises, or relieve Tenant from its obligation to pay all
Rent when due or from any other obligations of Tenant under this Lease provided
such failure shall not result in a health or safety hazard, exceed 96 hours in
duration or result in temperatures exceeding 90 degrees F nor falling below 55
degrees F.

4. POSSESSION, USE AND ENJOYMENT.

A. Possession and Use of Premises. Tenant shall be entitled to possession of the
Premises on January 01, 2001. Tenant shall occupy and use the Premises for
general office purposes only, with the exception of approximately (2,000) two
thousand square feet in the Eastern portion of the Leased Premises which shall
be used as a call center that will be operated on a (24) twenty four hour (7)
seven day per week basis. Tenant shall not occupy or use the Premises or permit
the use or occupancy of the Premises for any purpose or in any manner which:

(1) may be dangerous to persons or property;

(2) may invalidate or increase the amount of premiums for any policy of
insurance affecting the Building, and if any additional amounts of insurance
premiums are so incurred, Tenant shall pay to Landlord the additional amounts on
demand; or

(3) may create a nuisance, disturb any other tenant of the Building or the
occupants of neighboring property or injure the reputation of the Building.

B. Quiet Enjoyment. Provided that Tenant is not in breach or default under this
Lease, Tenant shall be entitled to peaceful and quiet enjoyment of the Premises,
subject to the terms of this Lease.

5. CONDITION OF PREMISES. Tenant shall notify Landlord in writing within thirty
(30) days after Tenant takes possession of the Premises of any defects in the
Premises claimed by Tenant. Except for defects stated in such notice and latent
defects of which Tenant becomes aware and notifies Landlord after the
Commencement Date, Tenant shall be conclusively presumed to have accepted the
Premises in the condition existing on the date Tenant first takes possession and
to have waived all claims relating to the condition of the Premises. No
agreement of Landlord to alter, remodel, decorate, clean or improve the Premises
or the Building, and no representation regarding the condition of the Premises
or the Building has been made by or on behalf of Landlord to Tenant, except as
stated in this Lease. In addition to and without limitation of Tenant's
obligations under subsection (3) of Paragraph 3B above, Tenant, at its expense,
shall keep the Premises in good repair and operating condition and shall
promptly repair all damage to the Premises caused by Tenant, or any of its
employees, agents or invitees.

6. NET BASE RENT. Tenant shall pay to Landlord Net Base Rent during the Term at
the annual rate(s) stated in Paragraph 1H. Net Base Rent shall be payable in
equal monthly installments in advance on the first day of each calendar month
during the Term, except that the installment of Net Base Rent due for the first
month of the Term in which Net Base Rent is payable shall be paid by Tenant to
Landlord when Tenant signs this Lease.

7. RENT ADJUSTMENT.

A. Definitions. As used in this Lease:

(1) "Expenses" shall mean and include all expenses, costs, fees and
disbursements paid or incurred by or on behalf of Landlord for owning, managing,
operating, maintaining and repairing the Building, the land upon which the
Building is situated (the "Land") and the personal property and equipment used
in connection with the Building or the Land. Expenses shall include the cost of
any capital improvements to the Building made after the date of this Lease which
are intended to reduce Expenses or which are required under any governmental
laws, regulations or ordinances which were not applicable to the Building at the
time it was constructed, which cost shall be

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<PAGE>   5

amortized over such reasonable period as Landlord shall determine, together with
interest on the un-amortized cost of any such improvement (at the prevailing
loan rate available to Landlord on the date the cost of such improvement was
incurred). Expenses shall not include "Taxes" (as defined in Paragraph 7.A. (2),
costs of alterations of the premises of tenants of the Building, interest and
principal payments on mortgages, ground rental payments and real estate
brokerage and leasing commissions and activities for the sole purpose of
marketing or leasing.

(2) "Taxes" shall mean any and all charges that are evidenced by the semi annual
real estate tax bills issued by the Cook County Collectors Office or any other
agency empowered to render a real estate tax bill for the Building.

(3) "Tenant's Proportionate Share" shall mean the percentage stated in Paragraph
1L. Tenant's Proportionate Share is determined by dividing the rentable area of
the Premises (which the parties mutually agree contains the area stated in
Paragraph 1J) by the rentable area of the Building (which the parties mutually
agree contains the area stated in Paragraph 1K.

B. Rent Adjustment. In addition to Base Rent, Tenant shall pay to Landlord for
each calendar year occurring entirely or partially within the Term (herein
sometimes called "Rent Adjustment"), Tenant's Proportionate Share of the sum of
all Expenses plus all Taxes for such calendar year as listed on Page 1, Item I
of the Basic Lease Provisions.

C. Payments of Rent Adjustment. Tenant shall make payments ("Progress Payments")
on account of the Combined Expense and Tax Adjustment for each calendar year
occurring entirely or partially within the Term as follows. Landlord may furnish
to Tenant prior to such calendar year and from time to time during such calendar
year a written notice (a "Projection Notice") setting forth (i) Landlord's
reasonable estimates, forecasts or projections of Taxes and Expenses for such
calendar year, (ii) the Combined Expense and Tax Adjustment for such calendar
year based upon such projections, and (iii) the monthly Progress Payments to be
made by Tenant for such year based upon such projected Combined Expense and Tax
Adjustment. Until Landlord furnishes a Projection Notice for such calendar year,
Tenant shall pay to Landlord Progress Payments (at the time of and together with
each monthly installment of Base Rent) equal to the greater of the latest
monthly installment of Progress Payments or one-twelfth (1/12th) of the sum of
the latest actual Combined Expense and Tax Adjustment as determined by Landlord.
On or before the first day of the month immediately following service of a
Projection Notice, and on or before the first day of each following month until
Tenant receives a further Projection Notice, Tenant shall pay to Landlord the
monthly installment of Progress Payments shown in the Projection Notice. Within
thirty (30) days following service of a Projection Notice, Tenant shall also pay
to Landlord a lump sum payment equal to the Progress Payments owing by Tenant to
Landlord (as shown in the Projection Notice) for the period commencing on the
first day of such calendar year and expiring on the last day of the month during
which such Projection Notice is served, less all Progress Payments previously
paid by Tenant to Landlord for such calendar year.

D. Readjustments. After the end of each calendar year and after Landlord shall
have determined the actual amounts of Taxes and the actual amount of Expenses to
be used in determining the Combined Expense and Tax Adjustment for such calendar
year, Landlord shall furnish Tenant a statement ("Landlord's Statement") of
Taxes and Expenses and the Combined Expense and Tax Adjustment for such calendar
year. If the sum of the Combined Expense and Tax owed for such calendar year
exceeds the Progress Payments paid by Tenant to Landlord for such calendar year,
then Tenant shall pay to Landlord within thirty (30) days after the date of
Landlord's Statement, an amount equal to such excess. If the Progress Payments
paid by Tenant to Landlord for such calendar year exceed the sum of the Combined
Expense and Tax Adjustment owed for such calendar year, then Landlord shall
credit such excess to Rent payable after the date of Landlord's Statement until
such excess is exhausted. If this Lease shall expire or terminate prior to full
application of such excess, Landlord shall pay to Tenant the unapplied balance
that is not reasonably required for payment of Rent Adjustment for the calendar
year in which the Lease expires or terminates. No interest or penalties shall
accrue on any amounts which Landlord is obligated to credit or pay to Tenant by
reason of this Paragraph 7D. Unless Tenant shall take written exception to any
item shown in any Landlord's Statement within thirty (30) days after the date of
such Landlord's Statement, Landlord's Statement shall be considered as final and
conclusively binding upon Tenant.

E. Survival. The obligations of Tenant to pay Rent Adjustment provided for in
this Paragraph 7 shall survive the expiration or termination of this Lease.
Tenant shall pay any Rent Adjustment owing to

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<PAGE>   6

Landlord within fifteen (15) days after the date of Landlord's Statement for the
calendar year in which this Lease expires or terminates.

F. No Decrease in Base Rent. In no event shall the determination of any Rent
Adjustment owing under this Paragraph 7 result in a decrease in the Net Base
Rent stated in Paragraph 1H.

G. Books and Records. Landlord shall maintain books and records of Expenses and
Taxes in accordance with sound accounting and managing practices. Provided that
all Rent (including Rent Adjustment) has been paid in full and Tenant is not
otherwise in breach or default under this Lease, the books and records shall be
available to Tenant for inspection during Landlord's normal business hours upon
prior reasonable notice at a location designated by Landlord.

H. Payment of Rent. All charges, costs and sums required to be paid by Tenant
under this Lease in addition to Net Base Rent and Rent Adjustment shall be
considered additional rent, and Base Rent, Rent Adjustment and additional rent
shall be collectively called "Rent". Rent shall be payable without demand,
notice, offset or deduction, except as otherwise specifically stated in this
Lease. All Rent due under this Lease shall be paid by checks payable to the
order of Arlington Associates, and delivered to Liz-Green, Inc., the managing
agent ("Manager"), which checks shall be mailed or delivered to Manager at the
Office of Manager, 2101 So. Arlington Heights Road, Arlington Heights, Illinois
60005 or in such other manner or at such other place as Landlord or Beneficiary
may from time to time designate to Tenant. Net Base Rent and Rent Adjustment
will be prorated for partial months or years within the Term. Tenant's covenant
to pay Rent shall be independent of each and every other covenant and provision
of this Lease.

8. SECURITY DEPOSIT. None.

9. ALTERATIONS.

A. Approvals. Without Landlord's prior written consent (which consent shall not
be unreasonably withheld), Tenant shall not make or cause to be made any
alterations, improvements, additions, changes or repairs (an "alteration",
collectively) in or to the Premises or the Building. As a condition to granting
its consent to any alteration, Landlord may impose reasonable requirements,
including, without limitation, requirements as to the manner and time for the
performance of such alteration and the type and amount of insurance and bonds
Tenant must acquire and maintain during the course of performance of such
alteration. In addition, Landlord shall have the right to: approve the
contractors or mechanics performing the alteration; approve all plans and
specification for the alteration; review the work of Tenant's architects,
engineers, contractors or mechanics; such approval shall not be unreasonably
withheld. The Landlord may order reasonable changes in such alteration in
instances in which materials or workmanship is defective or not in accordance
with plans or specifications previously approved by Landlord. Tenant shall pay
the entire cost of an alteration, and if requested by Landlord, shall deposit
with Landlord prior to commencement of such alteration, funds or other security
reasonably acceptable to Landlord covering the full cost of such alteration.
Each alteration shall become the property of Landlord when made and shall be
surrendered with the Premises upon the expiration or termination of this Lease;
provided, however, that Landlord may, by written notice to Tenant, require
Tenant, at its expense, to remove any or all alterations, including but not
limited to the UPS system, exterior diesel generator, exterior antennas and all
associated electrical panels and feeders and repair any damage to the Premises
or Building caused by such removal, prior to the expiration or termination of
this Lease.

B. Compliance with Laws. Each alteration shall be performed in a good and
workmanlike manner using new grades of materials; in full compliance with all
applicable laws, ordinances and governmental regulations, rules and
requirements; and in full compliance with all insurance rules, orders,
directions, regulations and requirements.

C. No Liens. Before any alteration is commenced, Tenant shall give Landlord at
least fifteen (15) days' prior written notice of same. Tenant, at its expense,
shall procure and deliver to Landlord a completion and lien indemnity bond
satisfactory to Landlord for such alteration, and during the course of
performance of such alteration Tenant shall, upon Landlord's request, furnish
Landlord with sworn contractor's statements and lien waivers covering all work
previously performed. Tenant shall not permit any lien or claim for lien of any
mechanic, laborer or supplier or any lien to be filed against the Building or
the Land, or any part thereof arising out of work performed, or alleged to have
been performed by, or at the direction of, or on behalf of Tenant. If any such
lien or claim for lien is filled, Tenant shall within ten (10) days after
written request to Tenant, either (i) have such lien or claim for lien released
of record, (ii) deliver

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to Landlord a bond in form, content, amount, and issued by surety, satisfactory
to Landlord indemnifying Landlord and others designated by Landlord against all
costs and liabilities resulting from such lien or claim for lien and the
foreclosure or attempted foreclosure thereof, or (iii) at Tenant's sole expense,
obtain and deliver to Landlord, a commitment from Chicago Title Insurance
Company, or other title insurance company acceptable to Landlord, committing to
insure title to the Building and the Landlord over such lien, in favor of
Landlord or any proposed purchaser or mortgagee of said Land or the Building. If
Tenant fails to have such lien, or claim for lien so released, or to deliver
such bond or title insurance commitment to Landlord, Landlord, without
investigating the validity of such lien, may pay or discharge the same and
Tenant shall reimburse Landlord upon demand for the amount so paid by Landlord,
including Landlord's expenses and attorney's fees. Tenant agrees to indemnify,
hold harmless and defend Landlord, the Beneficiary, the Manager and their
respective officers, partners and employees from any liability, loss, cost,
damage or expense (including attorneys' fees), arising out of any such lien
claim or out of any other claim relating to work done or materials supplied to
the Premises at Tenant's request or on Tenant's behalf, except if work is
furnished and installed by Landlord.

10. ASSIGNMENT AND SUBLETTING.

A. Consent. Tenant shall not without the prior written consent of Landlord which
consent shall not be unreasonably with-held in each instance,

(1) assign, mortgage, pledge, hypothecate or otherwise transfer or permit the
transfer of this Lease or the interest of Tenant in this Lease, in whole or in
part, by operation of law or otherwise:

(2) sublet all or any part of the Premises; or

(3) permit the use or occupancy of all or any part of the Premises for any
purpose not permitted under Paragraph 4, or by anyone other than Tenant and
Tenant's employees.

For purposes of this Paragraph 10A an "assignment" shall be considered to
include a change in the majority ownership or control of Tenant if Tenant is a
corporation whose stock is not traded publicly.

B. Recapture of Space. If Tenant desires to assign this Lease or sublet all or
any part of the Premises, Tenant shall give Landlord written notice ("Tenant's
Notice") of such desire prior to entering into such assignment or sublease,
which Tenant's Notice shall be signed by an officer or partner of Tenant. If
Tenant's Notice is for a proposed assignment, it shall state the name, address
and business of the assignee (and include current credit information and reports
on such assignee); the effective date of assignment; and the amount of all sums
and other consideration to be paid or transferred to Tenant for such assignment.
If Tenant's Notice is for a proposed sublease, it shall state the name, address
and business of the subtenant (and include current credit information and
reports on such subtenant); the commencement date of the term of the sublease;
the length of the term of the sublease (including any renewal options); the rent
to be payable under the sublease; and shall include a floor plan showing the
part of the Premises to be sublet (including separate identification of any part
of the Premises for which the subtenant will be granted expansion options or
rights). Landlord shall then have the right (the "recapture right") to (i)
terminate this Lease in its entirety effective as of the proposed effective date
of assignment or the proposed commencement date of the term of the sublease (as
specified in Tenant's Notice), if Tenant's Notice is for a proposed assignment
or for a proposed sublease of all of the Premises; or (ii) partially terminate
this Lease effective as of the proposed commencement date of the term of the
sublease (as specified in Tenant's Notice), with respect to that part of the
Premises to be sublet, if Tenant's Notice is for a proposed sublease of less
than all of the Premises. Landlord may exercise the recapture right by giving
Tenant written notice ("Landlord's Notice") of such exercise within fifteen (15)
business days after receipt by Landlord of Tenant's Notice. If Landlord
exercises the recapture right and this Lease is terminated in its entirety, then
neither Landlord nor Tenant shall have any further rights, estates or
liabilities under this Lease accruing after the effective date of termination,
except for such obligations which expressly survive the termination of this
Lease. If Landlord exercises the recapture right and this Lease is partially
terminated with respect to a part of the Premises (the "excluded space"), then,
effective as of the date this Lease is so partially terminated (i) the Net Base
Rent stated in Paragraph 1H shall be decreased to the product obtained by
multiplying such amount by a fraction, the numerator of which is the rentable
area of the Premises immediately after such partial termination of this Lease
(as determined by Landlord) and the denominator of which is the rentable area of
the Premises immediately prior to such partial termination of this Lease, (ii)
the rentable area of the Premises stated in Paragraph 1J shall be reduced by the
rentable area of the excluded space, (iii) Tenant's Proportionate Share stated
in Paragraph 1L shall be reduced to the percentage

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<PAGE>   8

obtained by dividing the new rentable area of the Premises by the rentable area
of the Building, (iv) Tenant shall pay the reasonable costs incurred in
physically separating the excluded space from the balance of the Premises and
shall surrender the excluded space to Landlord on or before the effective date
of partial termination in a good, clean and tenantable condition, ordinary wear
excepted; and (v) neither Landlord nor Tenant shall have any further rights,
estates or liabilities under this Lease with respect to the excluded space
accruing after the effective date of partial termination of this Lease, except
for such obligations which expressly survive the termination of this Lease.

C. Conditions for Consent. If Landlord does not exercise any recapture right
arising in favor of Landlord under Paragraph 10B, Tenant may then enter into the
assignment or sublease, as the case may be, specified in the Tenant's Notice
giving rise to such recapture right, in accordance, and only in accordance, with
the following provisions. If Tenant enters into such assignment or sublease it
shall submit an executed copy of the sublease or assignment to Landlord for
consent not less than thirty (30) days prior to the proposed effective date of
assignment or the proposed commencement date of the term of the sublease, as the
case may be. In the case of a sublease, the instrument shall expressly state
that it is and shall remain at all times subject and subordinate to this Lease
and all of the terms, covenants and agreements contained in this Lease. No such
assignment or sublease instrument shall expressly or by implication impose upon
Landlord any duties or obligations or alter the provisions of this Lease.
Landlord agrees to give Tenant written notice within fifteen (15) days after
receipt by Landlord of Tenant's proposed assignment or proposed sublease of
Landlord's consent to or rejection of same. Landlord agrees that its consent to
any such proposed assignment or proposed sublease shall not be unreasonably
withheld; provided, however, that in addition to other circumstances under which
Landlord's consent may be withheld, Tenant agrees that the withholding by
Landlord of its consent to such proposed assignment or proposed sublease will
not be deemed "unreasonable" if:

(1) the assignee or subtenant is non-creditworthy or disreputable, or is not of
a character, or otherwise is not in keeping with, the nature or class of tenants
in the Building,

(2) the assignee or subtenant is a government (or subdivision or agency thereof)
or is then a tenant in the Building,

(3) the use of the Premises by the assignee or subtenant would, in Landlord's
reasonable judgment, significantly increase the pedestrian traffic in and out of
the Building or the vehicular traffic in and about, or the use of, the exterior
paved parking area, or would require Landlord to perform any alterations to the
Building to comply with applicable building code requirements,

(4) there is then in existence any sublease of all or any part of the Premises,
or

(5) Tenant is then in breach or default under this Lease.

Tenant may not submit to Landlord for consent any assignment or sublease on
terms or conditions or with parties different from those stated in the Tenant's
Notice for such assignment or sublease, nor may Tenant submit to Landlord for
consent any assignment or sublease later than the date which is sixty (60) days
after the expiration of the period for exercise by Landlord of the recapture
right arising by reason of such assignment or sublease, without the right to
exercise its recapture right. Notwithstanding anything to and contrary contained
in this Lease, Tenant's sole right and remedy in any dispute as to whether
Landlord's consent to a proposed sublease or proposed assignment has been
unreasonably withheld shall be action for declaratory judgment or specific
performance and Tenant shall not be entitled to any damages if Landlord is
adjudged to have unreasonably withheld such consent.

D. Profit. If Tenant, having first obtained Landlord's consent in accordance
with Paragraph 10C, shall assign this Lease for money or other property, or
sublet all or any part of the Premises at a rental or for other consideration in
excess of the Net Base Rent plus Rent Adjustment (or prorate portion thereof)
due and payable by Tenant under this Lease, then Tenant shall pay to Landlord,
as additional rent (i) on the first day of each month during the term of any
such sublease, the excess of all rent and other consideration due from the
subtenant for such month over the sum of (ii) the Net Base Rent plus Rent
Adjustment then payable to Landlord under this Lease for said month (or if only
a portion of the Premises is being sublet, the portion of the Net Base Rent plus
Rent Adjustment then payable to Landlord under this Lease for said month which
is allocable on a square footage basis to the space sublet), plus (iii) an
amount equal to the quotient of the reasonable leasehold improvement costs and
customary real estate brokerage commissions to licensed Illinois real estate
brokers (other than to "Tenant or any affiliate of Tenant) incurred by Tenant

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<PAGE>   9

in connection with such sublease (as shall be supported by appropriate written
documentation submitted by Tenant to Landlord), divided by the number of months
in the term of such sublease, and (iv) immediately upon receipt, all sums or
other consideration received by Tenant from any such assignment; it being
agreed, however, that Tenant shall be responsible to Landlord for any deficiency
if Tenant shall assign this Lease or sublet all or any part of the Premises at a
rental or for consideration which is less than that required under this Lease.

E. No Waiver. Consent by Landlord to any subletting, transfer, lien, charge, use
or occupancy, shall not operate as a waiver by Landlord of, or to release or
discharge Tenant from, any liability under this Lease, whether past, present or
future (including liability arising during any renewal term of this Lease or
with respect to any expansion space included in the Premises), or be considered
to be a consent to or relieve Tenant from obtaining Landlord's consent to any
subsequent assignment, subletting, transfer, lien, charge, use or occupancy.
Tenant shall pay Landlord's reasonable costs, charges and expenses, including
attorney's fees and fees of architects, engineers and other professionals,
incurred in connection with its review of any proposed assignment or proposed
sublease, whether or not Landlord approves such transfer of interest, which in
no event shall be more than five hundred dollars ($500.00) for each proposed
sublease or assignment.

11. WAIVER AND INDEMNITY.

A. Waiver. To the extent permitted by Illinois law, Tenant waives all claims
against Landlord, the Beneficiary, the property manager and their respective
officers, partners, agents and employees, for injury or damage to person or
property sustained by Tenant resulting directly or indirectly from the gross
negligence or willful misconduct of Tenant, their respective officers, partners,
agents and employees due to fire or other casualty, cause or any existing or
future condition, defect, matter or thing in or about the Premises or the
Building, or from any equipment or appurtenance in the Building, or from any
accident in or about the Building, or from any act or neglect of any tenant or
other occupant of the Building or of any other person. This Paragraph 11A shall
apply especially, but not exclusively, to damage caused by water, snow, frost,
steam, excessive heat or cold, sewerage, gas, odors or noise, or the bursting or
leaking of pipes or plumbing fixtures, broken glass, sprinkling or air
conditioning devices or equipment, or flooding, and shall apply without
distinction as to the person whose act or neglect was responsible for the damage
and whether the damage was due to any of the acts specifically enumerated above,
or from any other thing or circumstance, whether of a like nature or of a wholly
different nature.

B. Indemnity. Tenant agrees to indemnify and hold harmless Landlord, and
Beneficiary, the Manager and their respective officers, partners, agents, and
employees, from and against any and all claims, demands, actions, injuries to
all persons and damage to or theft or misappropriation or loss of property
occurring in or about the Premises and arising from Tenant's occupancy of the
Premises or the conduct of its business or from any activity, work, or thing
done, permitted or suffered by Tenant in or about the Premises or from any
breach or default on the part of Tenant in the performance of any covenant or
agreement on the part of Tenant to be performed under this Lease or due to any
other act or omission of Tenant, its agents or employees. If any such proceeding
is filed against Landlord or any such indemnified party, Tenant agrees to defend
such proceeding at its sole cost by legal counsel reasonable satisfactory to
Landlord, if requested by Landlord.

12. LANDLORD'S REMEDIES.

A. Events of Default. Each of the following shall constitute an "event of
default" by Tenant under this Lease:

(1) Tenant fails to pay any installment of Rent within five (5) days after such
installment of Rent is due (which five (5) day period shall run concurrently
with and not be in addition to the statutory Landlord's five (5) day notice
required under Illinois law in dispossession proceedings); provided, however,
that if in any consecutive twelve (12) month period Tenant shall, on three (3)
separate occasions, fail to pay any installment of Rent on the date such
installment of Rent is due, then on the fourth (4th) such occasion and on each
occasion thereafter on which Tenant shall fail to pay an installment of Rent on
the date such installment of Rent is due, each such failure shall constitute an
event of default and Tenant shall then no longer have any five (5) day period in
which to cure any such failure.

                                       10
<PAGE>   10

(2) Tenant fails to observe or perform any of the other covenants or provisions
of this Lease to be observed or performed by Tenant and, for each such failure
which has not previously occurred within the then preceding six (6) month
period, Tenant fails to cure such failure within fifteen (15) days after written
notice to Tenant; provided, that if such failure is not susceptible to being
cured within such fifteen (15) day period but Tenant promptly commences such
cure, said fifteen (15) day period shall be extended as long as Tenant is
actively, diligently and continuously attempting to effectuate such cure (and
furnishing Landlord with weekly written status reports on such efforts) but in
no event shall said fifteen (15) day period be extended by more than thirty (30)
days;

(3) Tenant fails to maintain a temperature in the Premises of not less than
fifty-five degrees (55 degrees) Fahrenheit as provided in subsection (3) of
Paragraph 3B Above.

(4) Tenant abandons the Premises.

B. Landlord's Remedies. Upon the occurrence of an event of default by Tenant
under this Lease, Landlord, at its option, without further notice or demand to
Tenant, may, in addition to all other rights and remedies provided in this
Lease, or available to Landlord at law or in equity:

(1) Terminate this Lease and Tenant's right to possession of the Premises and
recover all damages to which Landlord is entitled under law, and in such event,
Landlord shall, to the extent required by law, take reasonable measures to
mitigate damages recoverable against Tenant. Landlord's damages shall
specifically include, without limitation (a) all Landlord's expenses or
re-letting including repairs, alterations, improvements, additions, legal fees
and brokerage commissions), plus (b) the amount of all Rent owing under this
Lease for the balance of the Term discounted at the rate of six percent (6%) per
year, which amount shall be automatically considered accelerated and immediately
due and payable in full by Tenant to Landlord upon Landlord's election to
terminate this Lease.

(2) Terminate Tenant's right to possession of the Premises without terminating
this Lease, in which event Landlord shall, if and to the extent required by law,
take reasonable measures to mitigate the damages recoverable against Tenant by
attempting to relet the Premises or any part thereof for the account of Tenant,
for such rent and term and upon such terms and conditions as are acceptable to
Landlord; provided, however, that Landlord shall not be obligated to market or
relet the Premises on a priority basis over unleased or unoccupied space in the
Building or to relet the Premises to any person or entity that falls within the
categories specified in 10C (1), (2) or (3) of this Lease. For purposes of such
re-letting, Landlord is authorized to decorate, repair, alter and improve the
Premises to the extent reasonably necessary. If Landlord does not relet the
Premises, then Tenant shall pay Landlord monthly on the first day of each month
during the period that Tenant's right of possession is terminated, a sum equal
to the amount of Rent due under this Lease for such month (less any amount which
Landlord could have realized if Landlord relet the Premises to a reputable,
credit worthy substitute tenant procured by Tenant and presented to Landlord in
writing, which substitute tenant was ready, willing and able to lease the entire
Premises from Landlord under a lease in form identical to the form of this
Lease). If the Premises are relet and a sufficient sum is not realized from such
reletting after payment of all Landlord's expenses of re-letting (including
repairs, alterations, improvements, additions, decorations, legal fees,
advertising and other marketing expenses and brokerage commissions) to satisfy
the payment of Rent due under this Lease for any month, Tenant shall pay
Landlord any such deficiency monthly upon demand. Tenant agrees that Landlord
may file suit to recover any sums due to Landlord under this section from time
to time and that such suit or recovery of any amount due Landlord shall not be
any defense to any subsequent action brought for any amount not previously
reduced to judgment in favor of Landlord. If Landlord elects to terminate
Tenant's right to possession only without terminating this Lease, Landlord may,
at its option, enter into the Premises, remove Tenant's signs and other
evidences of tenancy, and take and hold possession thereof; provided, however,
that such entry and possession shall not terminate this Lease or release Tenant,
in whole or in part, from Tenant's obligation to pay the Rent reserved hereunder
for the full Term or from any other obligation of Tenant under this Lease.

C. Bankruptcy. In the event a petition is filed by or against Tenant seeking a
plan of reorganization or arrangement under the Federal Bankruptcy Code,
Landlord and Tenant agree, to the extent permitted by

                                       11
<PAGE>   11

law, that the trustee in bankruptcy shall determine within sixty (60) days after
commencement of the case, whether to assume or reject this Lease.

D. Attorneys' Fees. Tenant shall pay upon issuance of a final unappealable
judgment against Tenant all costs and expenses, including attorneys' fees paid
or incurred by Landlord in connection with any action or proceeding by Landlord
to terminate this Lease or to terminate Tenant's right to possession of the
Premises.

13. SURRENDER OF PREMISES. Upon the expiration or termination of this Lease or
termination of Tenant's right to possession of the Premises, Tenant shall
surrender and vacate the Premises immediately and deliver possession of the
Premises to Landlord in a clean, good and tenantable condition, ordinary wear
excepted; provided, however, that all alterations and improvements installed in
the Premises shall be promptly removed by Tenant (at Tenant's cost and expense)
at the termination or expiration of the Term if so requested by Landlord. Upon
any termination which occurs other than by reason of Tenant's default, Tenant
shall be entitled to remove from the Premises all moveable trade fixtures and
personal property of Tenant without credit or compensation from Landlord,
provided, Tenant shall immediately repair all damage to the Premises or the
Building resulting from such removal and shall restore the Premises to a
tenantable condition. In the event possession of the Premises is not immediately
delivered to Landlord or if Tenant shall fail to remove any moveable trade
fixtures or personal property which Tenant is entitled to remove, Landlord may
remove same without any liability to Tenant. Any moveable trade fixtures and
personal property which may be removed from the Premises by Tenant but which are
not so removed shall be conclusively presumed to have been abandoned by Tenant
and title to such property shall pass to Landlord without any payment or credit,
and Landlord may, at its option and at Tenant's expense, store and/or dispose of
such property.

14. HOLDING OVER.

A. Tenant shall pay Landlord double the Net Base Rent plus double the Rent
Adjustment then applicable for each month (or any part of a month) if Tenant
obtains Landlords written permission to retain possession month to month of all
or any part of the Premises after the expiration or termination of the Term of
this Lease. The provisions of this Paragraph 14 shall not constitute a waiver by
Landlord of any re-entry or eviction rights of Landlord available under this
Lease or by law.

B. Without limiting anything set forth in Paragraph 14A above, Tenant shall
indemnify, defend and forever hold harmless Landlord, the Beneficiary, the
Manager and their respective officers, partners and employees from and against
any and all claims, liabilities, actions, losses, damages and expenses
(including court costs and attorneys' fees) asserted against or sustained by any
such party and arising from or by reason of such retention of possession.

C. Reserved Parking. Notwithstanding the provision of section 3.A.(9) of this
Lease, the Landlord shall make available during the term of this lease a total
of ten (10) reserved parking spaces for the exclusive use of Security Associates
International, Inc.

15. OPTION TO RENEW.

A. So long as an event of default is not then existing the term of this Lease
may be extended, at the option of Tenant, for one additional period of five (5)
years with six (6) months or more prior written notice to Landlord with such
period being herein sometimes referred to as the Extended Term as follows:

B. The Extended Term shall be on the same terms, covenants and conditions of
this Lease and any reference herein to the "Terms" shall be deemed to include
any Extended Term applied thereto, except for the amount of Net Base Rent during
the Extended Term. The Net Base Rent during the first year of the Extended Term
shall be the same as the fifth year of the initial Lease Term. The Net Base Rent
for each succeeding year of the Extended Term shall be equal to one hundred five
percent (105%) of the annual Net Base Rent for the immediately preceding year.
Any termination of this Lease during the Initial Term of this Lease or an
Extended Term shall terminate all rights hereunder.

16. RULES AND REGULATIONS. Tenant shall abide by all reasonable rules and
regulations adopted by Landlord from time to time for the operation and
management of the Building. If any rules and regulations are contrary to the
provisions of this Lease, the provisions of this Lease shall govern. Attached to
this Lease as Exhibit "C" are the current rules and regulations for the
Building, all of which Tenant

                                       12
<PAGE>   12

hereby agrees shall be deemed to be reasonable. Landlord shall not be
responsible for the violation of any rules or regulations of the Building by
other tenants of the Building.

17. FIRE AND OTHER CASUALTY. If all or a substantial part of the Premises are
rendered untenantable by reason of fire or other casualty, or if the Building is
damaged by fire or other casualty in such a manner as materially adversely
affects access to or use of the Premises, Landlord shall with reasonable
diligence take such action as is necessary to repair and restore the Premises
and the Building. In the event Landlord fails for any reason to complete said
restoration within ninety (90) days then either party shall have the right to
terminate this Lease by giving to the other party written notice of such
election within ten (10) days after receipt of the architect's certificate. If
said fire or other casualty results in the total destruction of the Building,
this Lease shall automatically terminate as of the date of said fire or other
casualty. Net Base Rent and Rent Adjustment shall abate for that part of the
Premises which are untenantable on a per diem and proportionate area basis from
the date of the fire or other casualty until Landlord has substantially
completed the repair and restoration work; provided, that Tenant does not occupy
or use such part of the Premises which are untenantable during such period.

18. TENANT'S INSURANCE. Tenant, at its expense, shall maintain in force at all
times during the Term and comprehensive general public liability insurance,
which shall include coverage for personal liability, contractual liability,
tenant's legal liability, bodily injury, death and property damage, all on an
occurrence basis with respect to the business carried on in or from the Premises
and Tenant's use and occupancy of the Premises, with coverage for any one
occurrence or claim of not less than two million dollars ($2,000,000), which
insurance shall include Landlord and Beneficiary as named insured and shall
protect Landlord and Beneficiary in respect of claims by Tenant as if Landlord
and Beneficiary were separately insured. Such insurance shall be on terms and
with insurers reasonably acceptable to Landlord. Any casualty insurance carried
by Tenant and covering the Premises or Tenant's fixtures, property or equipment
located in the Premises shall contain a waiver by the insurer of any rights of
subrogation or indemnity or any other claim to which the insurer might otherwise
be entitled against Landlord, the Beneficiary, the Manager and their respective
partners, agents or employees. Tenant shall furnish to Landlord prior to the
Commencement Date, certificates or other evidences acceptable to Landlord as to
the insurance from time to time maintained by Tenant and, no later than thirty
(30) days prior to the date such insurance otherwise would expire, Tenant shall
furnish Landlord with certificates confirming the renewal or continuation of
such insurance for themselves and all others claiming under them, including the
insurer, waive all rights including rights of subrogation against the other for
loss, damage or liability resulting from a risk which is insured against by
either party, to the extent of any recovery collectible under such insurance;
provided, however, that this waiver shall apply only when permitted by the
applicable policy of insurance.

19. WAIVER OF RECOVERS AND SUBROGATION. Notwithstanding any other provision of
this Lease to the contrary, Lessor and Lessee agree that in the event that the
building of which the Premises are a part or any part or parts thereof or the
fixtures, merchandise, and contents therein are damaged or destroyed by fire or
other casualty, each of the parties hereto, for itself and any person or entity
claiming through or under such party by way of subrogation or otherwise, hereby
waives all rights of recovery from the other party hereto for any loss or damage
whether caused by such other parties negligence or otherwise. Lessor shall cause
each insurance policy carried by Lessor insuring the building of which the
Premises are a part or any part or parts thereof against loss by fire or any
other casualties covered or embraced by all risk or special form property
casualty insurance to be written in such a manner so as to provide that the
insurer waives all right of recovery by way of subrogation against Lessee in
connection with any loss or damage covered by the policy or policies and that
such waiver shall not invalidate such insurance policy or policies. Lessee will
cause each Insurance policy carried by Lessee insuring Lessee's property in the
Premises to be written in such a manner so as to provide that the insurer waives
all right of recovery by way of subrogation against Lessor in connection with
any loss or damage covered by the policy and that such waiver shall not
invalidate such insurance policy or policies.

20. LANDLORD'S RIGHTS. Landlord shall have the following rights exercisable
without notice (except as expressly provided to the contrary) and without being
deemed an eviction or disturbance of Tenant's use or possession of the Premises
or giving rise to any claim for set-off or abatement of Rent: (1) To change the
name or street address of the Building upon prior written notice to Tenant; (2)
To install, affix and maintain all signs on the exterior and/or interior of the
Building; (3) To designate and/or approve prior to installation, all types of
signs, window shades, blinds, drapes, awnings or other similar items, and all
internal lighting that may be visible from the exterior of the Premises; (4) To
display the Premises to holders of mortgages or trust deeds encumbering the
Building or potential purchasers of the Building at any

                                       13
<PAGE>   13

reasonable hour, and to prospective tenants at reasonable hours during the last
twelve (12) months of the Term; (5) a notice of not less than forty eight (48)
hours shall be provided prior to changing the arrangement of entrances, doors,
corridors, and stairs in or outside of the Building; (6) To grant to any party
the exclusive right to conduct any business or render any service in or to the
Building, provided such exclusive right shall not operate to prohibit Tenant
from using the Premises for the purposes permitted under this Lease; (7) To
prohibit the placing of vending or dispensing machines of any kind in or about
the Premises other than for use by Tenant's employees; (8) To have access for
Landlord and other tenants of the Building to any mail chutes and boxes located
in or on the Premises according to the rules of the United States Post Office
and to discontinue any mail chute service in the Building; (9) To close the
Building after normal business hours, except that Tenant and its employees and
invitees shall be entitled to admission at all times under such regulations as
Landlord prescribes for security purposes; (10) To take any and all reasonable
measures, including inspections and repairs to the Premises or to the Building,
as may be necessary or desirable in the operation or protection of the Building;
(11) To retain at all times master keys or pass keys to the Premises; (12) To
install, operate and maintain security systems which monitor, by closed circuit
television or otherwise, all persons entering and leaving the Building; (13) To
install and maintain pipes, ducts, conduits, wires and structural elements
located in the Premises which serve other parts or other tenants of the
Building; (14) To make alterations, improvements, repairs and replacements to
the Building or any systems, equipment, machinery or common areas located in,
on, under or outside of the Building; and (15) To install blinds and/or window
treatments in the Premises in order to maintain conformance with the standards
or aesthetics of the Building.

21. ESTOPPEL CERTIFICATE. Tenant shall within five (10) business days after each
prior written request from Landlord, execute and deliver in form and substance
satisfactory to Landlord, an estoppel letter signed by an officer or partner of
Tenant and certifying: the Commencement Date and the Expiration Date; the date
to which Net Base Rent and Rent Adjustment has been paid; the amount of Net Base
Rent and Rent Adjustment then being paid; the amount of any security deposit;
that Tenant has accepted the Premises; that this Lease is in full force and
effect and has not been modified, amended or assigned (or, if modified, stating
the nature of such modification and certifying that this Lease, as so modified,
is in full force and effect); that all improvements have been fully completed;
that there are no defaults of Landlord under this Lease nor any existing
condition upon which the giving of notice or lapse of time would constitute a
default; that Tenant has not received any concession; that there are no offsets
to the payment of Rent; that Tenant has received no notice from any insurance
company of any defects or inadequacies of the Premises; Tenant has no options or
rights other than as set forth in this Lease; or by operation of law and such
other matters which Landlord may reasonably request. If the letter is to be
delivered to a purchaser or other subsequent owner of the Building, it shall
further include the agreement of Tenant to recognize such purchaser or other
subsequent owner as Landlord under this Lease and to pay Rent to the purchaser
or other subsequent owner or its designee in accordance with the terms of this
Lease. It is expressly understood and agreed that any such statement may be
relied upon by any prospective purchaser, mortgagee or ground lessor of all or
any portion of the Real Estate. Tenant's failure to deliver such statement
within said five (5) day period shall be conclusive upon Tenant that this Lease
is in full force and effect, without modification except as may be represented
by Landlord, that there are no uncured defaults in Landlord's performance, that
not more than two (2) months' rental has been paid in advance and that all other
statements required to be made in the estoppel letter are conclusively made.

22. MORTGAGE BY LANDLORD. This Lease is expressly subject and subordinate at all
times to (1) any ground, underlying or operating lease of the Building or the
Land now or hereafter existing and all amendments, renewals and modifications to
any such lease, and (2) the lien of any now existing or hereafter created
mortgage or trust deed encumbering fee title to the Building, the Land and/or
the leasehold estate under any such ground, underlying or operating lease, and
to all advances made or to be made upon the security of such lien. Tenant
agrees:

(a) if requested by any mortgagee, trustee or lessor, Tenant shall subordinate
its interest in this Lease to any such mortgage, trust deed or lease and will
execute such subordination agreement or agreements as may be reasonably required
by any said mortgagee, trustee or lessor, and

(b) in the event of any default by Landlord under this Lease which would give
Tenant the right to terminate this Lease or to claim a partial or total
eviction, Tenant will not exercise any such right until (i) it has notified in
writing the mortgagee, holder of such trust deed or lessor, as the case may be
(if the name and address of such mortgagee, holder or lessor shall have
previously been furnished by written notice to Tenant) of such default, and (ii)
such mortgagee, holder or

                                       14
<PAGE>   14

lessor, as the case may be, fails within a reasonable time (not to exceed thirty
(30) days) after receipt of such notice to cause such default to be cured, and

(c) if any such mortgage or trust deed be foreclosed (or a deed given in lieu of
foreclosure), or if any such lease be terminated, upon request of the mortgagee,
holder or lessor, as the case may be, Tenant will attorn to the purchaser at
foreclosure sale (or grantee of deed in lieu of foreclosure) or the lessor under
the lease, as the case may be, and will execute such instruments as may be
necessary or appropriate to evidence such attornment.

23. NOTICES. All notices and approvals to be given by one party to the other
party under this Lease shall be given in writing, mailed or delivered as
follows:

(a) To Landlord, LaSalle Bank National Association, Successor Trustee to
American National Bank and Trust Company of Chicago, As Trustee Under Trust No.
59948, 135 So. LaSalle Street, Suite 2500, Chicago IL 60603.

(b) Washington Square Capital, 100 Washington Square, Suite 800, Minneapolis, MN
55441-2147, Attn: Ms. Janine Desplinter.

(c) Liz-Green, Inc., 2101 So. Arlington Heights Road, Arlington Heights,
Illinois 60005, Attention: Property Manager or to such other person or persons
or at such other address of addresses designated by notice to Tenant.

(d) To Tenant at the location stated in Paragraph 1C until Tenant takes
possession of the Premises and then at the Premises.

Notices shall be delivered by hand or by United States certified or registered
mail, postage prepaid, return receipt requested. Notices shall be considered to
have been given upon personal delivery or upon posting in the United States
Mails.

24. MISCELLANEOUS.

A. Binding Effect. This Lease shall be binding upon and inure to the benefit of
Landlord and Tenant and their respective heirs, legal representatives,
successors and permitted assigns.

B. Default Interest. All amounts owing to Landlord under this Lease for which
the date of payment is not expressly fixed, shall be paid within thirty (30)
days after the date Landlord renders statements of account. Tenant shall pay
Landlord interest from the date payment is due until it is made on any Rent
owing under this Lease, which is not paid with in ten (thirty (30) of the date
it first becomes due and on all other amounts not paid Landlord within thirty
(30) days after they become due, at a rate equal to the sum of three percent
(3%), plus the prime rate of interest from time to time announced by LaSalle
Bank National Association.

C. Eminent Domain. In the event that all or a substantial part of the Premises
or the Building are taken by eminent domain (or by a deed given in lieu of
condemnation) so that the Premises cannot be reasonably used by Tenant for the
purposes for which they are leased, then either party may terminate this Lease
by giving written notice of termination to the other party within thirty (30)
days after such taking. In the event of any taking by eminent domain (or deed
given in lieu of condemnation) the entire award shall be paid to and retained by
Landlord. Subject to the foregoing, Tenant may pursue a separate award against
the condemning authority in a separate proceeding for Tenant's loss, if any, to
leasehold improvements paid for by Tenant without any credit or allowance from
Landlord and for Tenant's moving and relocation expenses.

D. Exhibits. All Exhibits attached to this Lease are made a part of this Lease
and incorporated by this reference into this Lease.

                                       15
<PAGE>   15

E. Entire Agreement. This Lease and the Exhibits and Rider (if any) attached to
this Lease set forth all the covenants, promises, assurances, agreements,
representations, conditions, warranties, statements and understandings (the
"Representations" collectively) between Landlord and Tenant concerning the
Premises and the Building, and there are no Representations, either oral or
written, between them other than those in this Lease. This Lease supersedes and
revokes all previous negotiations, estimates of the initial and/or future
amounts of Expenses, Taxes and/or Rent, arrangements, letters of intent, offers
to lease, reservations of space, lease proposals, brochures, Representations and
information conveyed, whether oral or in writing, between the parties or their
respective representatives, agents, brokers, salespersons or any other person
purporting to represent Landlord or Tenant. Tenant acknowledges that it has not
been induced to enter into this Lease by any Representations not set forth in
this Lease, it has not relied on any such Representations, no such
Representation shall be used in the interpretation or construction of this Lease
and Landlord shall have no liability for any consequences arising as a result of
any such Representations. No subsequent alteration, amendment, change or
addition to this Lease shall be binding upon Landlord or Tenant unless in
writing signed by both parties.

F. Signing. The signing of this Lease by Tenant and delivery of this Lease to
Landlord or its agent does not constitute a reservation of or option for the
Premises or an agreement to enter into a Lease and this Lease shall become
effective only if and when Landlord signs and delivers same to Tenant; provided,
however, the signing and delivery by Tenant of this Lease to Landlord or its
agent shall constitute an irrevocable offer by Tenant to lease the Premises on
the terms and conditions contained in this Lease, which offer may not be
withdrawn or revoked for thirty (30) days after such signing and delivery. If
Tenant is a corporation, it shall deliver to Land-lord concurrently with the
delivery to Landlord of a signed Lease, certified resolutions of Tenant's
directors authorizing the signing and delivery of this Lease and the performance
by Tenant of its obligations under this Lease.

G. No Accord. No payment by Tenant or receipt by Landlord of a lesser amount
than any installment or payment of Rent due shall be deemed to be other than on
account of the amount due, and no endorsement or statement on any check or any
letter accompanying any check or payment of Rent shall be considered an accord
and satisfaction, and Landlord may accept such check or payment without
prejudice to Landlord's right to recover the balance of such installment or
payment of Rent or pursue any other remedies available to Landlord. No receipt
of money by Landlord from Tenant after the termination of this Lease or Tenant's
right to possession of the Premises shall reinstate, continue or extend the
Term.

H. Broker. Tenant represents to Landlord and the Beneficiary that except for the
broker stated in Paragraph 1(0), Tenant has not dealt with any real estate
broker, sales person, or finder in connection with this Lease, and no such
person initiated or participated in the negotiation of this Lease, or showed the
Premises to Tenant. Tenant agrees to indemnify, defend and hold harmless
Landlord, the Beneficiary, the Manager and their respective officers, partners
and employees, from and against any and all claims, demands, for brokerage
commissions or fees arising out of a breach of such representation. Unless
otherwise agreed by the parties, Landlord shall be responsible for the payment
of all commissions to the broker stated in Paragraph 1(0), based upon the
leasing commission policy of Landlord applicable to the Building and in effect
as of the date of this Lease.

I. Force Majeure. Landlord shall not be considered in default of any of the
terms, covenants and conditions of this Lease on Landlord's part to be
performed, if Landlord fails to timely perform same and such failure is due to
in whole or in part to any strike, lockout, labor trouble (whether legal or
illegal), civil disorder, inability to procure materials, failure of power or
reduction or interruption in the furnishing or level of power, water, sewer, gas
or any other service or utility to be furnished or provided under this Lease,
restrictive governmental laws and regulations, riots, insurrections, war, fuel
shortages, accidents, casualties, Acts of God, acts caused directly or
indirectly by Tenant (or Tenant's agents, employees or invitees) or any other
cause beyond the reasonable control of Landlord.

J. Paragraphs. Paragraph captions in this Lease are inserted only as a matter of
convenience and in no way define, limit, construe or describe the scope or
intent of such Paragraphs.

K. Applicable Law. This Lease shall be construed in accordance with the laws of
the State of Illinois.

L. Time. Time is of the essence of this Lease and the performance of all
obligations under this Lease.

                                       16
<PAGE>   16

M. Landlord's Performance. If Tenant fails timely to perform any of its duties
under this Lease, Landlord shall have the right (but not the obligation) after
the expiration of any applicable notice and cure period, to itself perform such
duty on behalf and at the expense of Tenant, without further notice to Tenant,
and all sums incurred by Landlord in performing such duty shall be considered
additional rent under this Lease and shall be due and payable upon demand by
Landlord.

N. Recording. Tenant shall not record this Lease or a memorandum of this Lease
in the Office of the Recorder of Deeds of Cook County, Illinois.

O. Severability. If any clause, phrase, provision or portion of this Lease or
the application of same to any person or circumstance shall be invalid or
unenforceable under applicable law, such event shall not affect, impair or
render invalid or unenforceable the remainder of this Lease, nor any other
clause, phrase, provision or portion of this Lease, nor shall it affect the
application of any clause, phrase, provision or portion of this Lease to other
persons or circumstances.

P. Litigation Costs . In the event any litigation is instituted by any party to
this Agreement against the other party regarding the construction of any term or
to recover any damages resulting from a breach of any term of this Agreement,
the prevailing party in any such action shall be entitled to recover from the
losing party all of such prevailing party's attorneys' fees and costs associated
with such action.

25. EXCULPATION. This Lease is executed by LaSalle Bank National Association,
Successor Trustee to American National Bank and Trust Company of Chicago, As
Trustee Under Trust No. 59948, not personally but as Trustee as aforesaid, in
the exercise of the power and authority conferred upon and vested in it as such
Trustee, and under the express direction of the beneficiaries of a certain Trust
Agreement dated December 15, 1983, and known as Trust Number 59948 at LaSalle
Bank National Association, to all provisions of which Trust Agreement this Lease
is expressly made subject. It is expressly understood and agreed that nothing
contained in this Lease shall be construed as creating any liability whatsoever
against said Trustee personally, and in particular without limiting the
generality of the foregoing, there shall be no personal liability to pay any
indebtedness accruing under this Lease or to perform any covenant, either
express or implied, contained in this Lease, or to keep, preserve or sequester
any property of said Trust, and that all personal liability of said Trustee of
every sort, if any, is hereby expressly waived by Tenant, and by every person
now or hereafter claiming any right or security under this Lease; and that so
far as the said Trustee is concerned the owner of any indebtedness or liability
accruing under this Lease shall look solely to the Premises for the payment of
same. It is further understood and agreed that the said Trustee has no agents or
employees and merely holds naked legal title to the Real Estate; that said
Trustee has no control over and under this Lease, assumes no responsibility for,
(1) the management or control of the Real Estate, (2) the upkeep, inspection,
maintenance or repair of the Real Estate, (3) the collection of rents, or the
rental of the Real Estate, or (4) the conduct of any business which is carried
on upon the Real Estate.

                                       17
<PAGE>   17

IN WITNESS WHEREOF, this Lease is executed as of the day and year aforesaid.

TENANT:   By:                                            Date:
             ------------------------------------------       ------------------
                James S. Brannen, President
                Security Associates International, Inc.

LANDLORD: LASALLE BANK NATIONAL ASSOCIATION, SUCCESSOR TRUSTEE TO AMERICAN
          NATIONAL BANK AND TRUST COMPANY OF CHICAGO, NOT PERSONALLY BUT SOLELY
          AS TRUSTEE UNDER IT'S TRUST NO. 59948

          By:                                            Date:
             ------------------------------------------       ------------------

                                       18
<PAGE>   18

EXHIBIT "A", TO LEASE DATED AUGUST 12, 2000, BY AND BETWEEN LASALLE NATIONAL
ASSOCIATION SUCCESSOR TRUSTEE TO AMERICAN NATIONAL BANK AND TRUST COMPANY UNDER
TRUST AGREEMENT KNOWN AS TRUST NO. 59948 AS LANDLORD AND SECURITY ASSOCIATES
INTERNATIONAL, INC., AS TENANT.

<TABLE>
<CAPTION>
                                                                   Total
                      Net Base Rent        Tax And Operating      Estimated
                         Actual            Expenses Estimated     Payments
                      -------------        ------------------     ---------
<S>                   <C>                  <C>                    <C>
    1 /1/2001           18,460.00              14,191.35          32,651.35
    2 /1/2001           18,460.00              14,191.35          32,651.35
    3 /1/2001           18,460.00              14,191.35          32,651.35
    4 /1/2001           18,460.00              14,191.35          32,651.35
    5 /1/2001           18,460.00              14,191.35          32,651.35
    6 /1/2001           18,460.00              14,191.35          32,651.35
    7 /1/2001           18,460.00              14,191.35          32,651.35
    8 /1/2001           18,460.00              14,191.35          32,651.35
    9 /1/2001           18,460.00              14,191.35          32,651.35
   10 /1/2001           18,460.00              14,191.35          32,651.35
   11 /1/2001           18,460.00              14,191.35          32,651.35
   12 /1/2001           18,460.00              14,191.35          32,651.35
    1 /1/2002           19,106.10              14,759.00          33,865.10
    2 /1/2002           19,106.10              14,759.00          33,865.10
    3 /1/2002           19,106.10              14,759.00          33,865.10
    4 /1/2002           19,106.10              14,759.00          33,865.10
    5 /1/2002           19,106.10              14,759.00          33,865.10
    6 /1/2002           19,106.10              14,759.00          33,865.10
    7 /1/2002           19,106.10              14,759.00          33,865.10
    8 /1/2002           19,106.10              14,759.00          33,865.10
    9 /1/2002           19,106.10              14,759.00          33,865.10
   10 /1/2002           19,106.10              14,759.00          33,865.10
   11 /1/2002           19,106.10              14,759.00          33,865.10
   12 /1/2002           19,106.10              14,759.00          33,865.10
    1 /1/2003           19,774.81              15,201.77          34,976.59
    2 /1/2003           19,774.81              15,201.77          34,976.59
    3 /1/2003           19,774.81              15,201.77          34,976.59
    4 /1/2003           19,774.81              15,201.77          34,976.59
    5 /1/2003           19,774.81              15,201.77          34,976.59
    6 /1/2003           19,774.81              15,201.77          34,976.59
    7 /1/2003           19,774.81              15,201.77          34,976.59
    8 /1/2003           19,774.81              15,201.77          34,976.59
    9 /1/2003           19,774.81              15,201.77          34,976.59
   10 /1/2003           19,774.81              15,201.77          34,976.59
   11 /1/2003           19,774.81              15,201.77          34,976.59
   12 /1/2003           19,774.81              15,201.77          34,976.59
    1 /1/2004           20,466.93              15,657.83          36,124.76
    2 /1/2004           20,466.93              15,657.83          36,124.76
    3 /1/2004           20,466.93              15,657.83          36,124.76
    4 /1/2004           20,466.93              15,657.83          36,124.76
    5 /1/2004           20,466.93              15,657.83          36,124.76
    6 /1/2004           20,466.93              15,657.83          36,124.76
</TABLE>

                                       19

<PAGE>   19

<TABLE>
<CAPTION>
                                                                  Total
                     Net Base Rent        Tax And Operating      Estimated
                        Actual            Expenses Estimated     Payments
                     -------------        ------------------     ---------
<S>                   <C>                  <C>                    <C>
    7/1/2004           20,466.93              15,657.83          36,124.76
    8/1/2004           20,466.93              15,657.83          36,124.76
    9/1/2004           20,466.93              15,657.83          36,124.76
   10/1/2004           20,466.93              15,657.83          36,124.76
   11/1/2004           20,466.93              15,657.83          36,124.76
   12/1/2004           20,466.93              15,657.83          36,124.76
    1/1/2005           21,183.27              16,127.56          37,310.84
    2/1/2005           21,183.27              16,127.56          37,310.84
    3/1/2005           21,183.27              16,127.56          37,310.84
    4/1/2005           21,183.27              16,127.56          37,310.84
    5/1/2005           21,183.27              16,127.56          37,310.84
    6/1/2005           21,183.27              16,127.56          37,310.84
    7/1/2005           21,183.27              16,127.56          37,310.84
    8/1/2005           21,183.27              16,127.56          37,310.84
    9/1/2005           21,183.27              16,127.56          37,310.84
   10/1/2005           21,183.27              16,127.56          37,310.84
   11/1/2005           21,183.27              16,127.56          37,310.84
   12/1/2005           21,183.27              16,127.56          37,310.84
    1/1/2006           21,924.69              16,611.39          38,536.08
    2/1/2006           21,924.69              16,611.39          38,536.08
    3/1/2006           21,924.69              16,611.39          38,536.08
    4/1/2006           21,924.69              16,611.39          38,536.08
    5/1/2006           21,924.69              16,611.39          38,536.08
    6/1/2006           21,924.69              16,611.39          38,536.08
    7/1/2006           21,924.69              16,611.39          38,536.08
    8/1/2006           21,924.69              16,611.39          38,536.08
    9/1/2006           21,924.69              16,611.39          38,536.08
   10/1/2006           21,924.69              16,611.39          38,536.08
   11/1/2006           21,924.69              16,611.39          38,536.08
   12/1/2006           21,924.69              16,611.39          38,536.08
    1/1/2007           22,692.05              17,275.84          39,967.90
    2/1/2007           22,692.05              17,275.84          39,967.90
    3/1/2007           22,692.05              17,275.84          39,967.90
    4/1/2007           22,692.05              17,275.84          39,967.90
    5/1/2007           22,692.05              17,275.84          39,967.90
    6/1/2007           22,692.05              17,275.84          39,967.90
    7/1/2007           22,692.05              17,275.84          39,967.90
    8/1/2007           22,692.05              17,275.84          39,967.90
    9/1/2007           22,692.05              17,275.84          39,967.90
   10/1/2007           22,692.05              17,275.84          39,967.90
   11/1/2007           22,692.05              17,275.84          39,967.90
   12/1/2007           22,692.05              17,275.84          39,967.90
    1/1/2008           23,486.28              17,794.12          41,280.40
    2/1/2008           23,486.28              17,794.12          41,280.40
    3/1/2008           23,486.28              17,794.12          41,280.40
    4/1/2008           23,486.28              17,794.12          41,280.40
    5/1/2008           23,486.28              17,794.12          41,280.40
    6/1/2008           23,486.28              17,794.12          41,280.40
    7/1/2008           23,486.28              17,794.12          41,280.40
    8/1/2008           23,486.28              17,794.12          41,280.40
    9/1/2008           23,486.28              17,794.12          41,280.40
   10/1/2008           23,486.28              17,794.12          41,280.40
</TABLE>

                                       20

<PAGE>   20

<TABLE>
<CAPTION>
                                                                  Total
                     Net Base Rent        Tax And Operating      Estimated
                        Actual            Expenses Estimated     Payments
                     -------------        ------------------     ---------
<S>                   <C>                  <C>                    <C>
   11/1/2008           23,486.28              17,794.12          41,280.40
   12/1/2008           23,486.28              17,794.12          41,280.40
    1/1/2009           24,308.29              18,327.94          42,636.24
    2/1/2009           24,308.29              18,327.94          42,636.24
    3/1/2009           24,308.29              18,327.94          42,636.24
    4/1/2009           24,308.29              18,327.94          42,636.24
    5/1/2009           24,308.29              18,327.94          42,636.24
    6/1/2009           24,308.29              18,327.94          42,636.24
    7/1/2009           24,308.29              18,327.94          42,636.24
    8/1/2009           24,308.29              18,327.94          42,636.24
    9/1/2009           24,308.29              18,327.94          42,636.24
   10/1/2009           24,308.29              18,327.94          42,636.24
   11/1/2009           24,308.29              18,327.94          42,636.24
   12/1/2009           24,308.29              18,327.94          42,636.24
    1/1/2010           25,159.09              18,877.78          44,036.87
    2/1/2010           25,159.09              18,877.78          44,036.87
    3/1/2010           25,159.09              18,877.78          44,036.87
    4/1/2010           25,159.09              18,877.78          44,036.87
    5/1/2010           25,159.09              18,877.78          44,036.87
    6/1/2010           25,159.09              18,877.78          44,036.87
    7/1/2010           25,159.09              18,877.78          44,036.87
    8/1/2010           25,159.09              18,877.78          44,036.87
    9/1/2010           25,159.09              18,877.78          44,036.87
   10/1/2010           25,159.09              18,877.78          44,036.87
   11/1/2010           25,159.09              18,877.78          44,036.87
   12/1/2010           25,159.09              18,877.78          44,036.87
</TABLE>

                                       21

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00017-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00017-of-00352.parquet"}]]