Document:

<PAGE>   1
                                                                    Exhibit 10.4

                                AMENDMENT ONE TO
                           LOAN AND SECURITY AGREEMENT

         THIS AMENDMENT ONE TO LOAN AND SECURITY AGREEMENT (this "Amendment"),
dated as of February 23, 2000, is made and entered into by and between BANK ONE,
TEXAS, NATIONAL ASSOCIATION ("LENDER") and LONG REACH HOLDINGS, INC., a Delaware
corporation ("BORROWER").

                                    RECITALS

         A. Borrower and Lender entered into that certain Loan and Security
Agreement, dated April 20, 1999 (the "LOAN AGREEMENT").

         B. Borrower is the surviving corporation of a merger of Long Reach
Holding, Inc., a Delaware corporation, into TBM Acquisition I, Inc., a Delaware
corporation (the "MERGER") pursuant to the Amended and Restated Agreement and
Plan of Merger dated as of February 4, 2000 by and among TBM Holdings, Inc., TBM
Acquisition I, Inc., Long Reach Holdings, Inc. and the shareholders of Long
Reach Holdings, Inc. (the "MERGER AGREEMENT").

         C. Lender and Borrower desire to amend the Loan Agreement as herein set
forth.

         NOW, THEREFORE, in consideration of the premises herein contained and
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged by both parties, the parties hereto, intending to be legally
bound, agree as follows:

                                    ARTICLE I
                                   Definitions

         Section 1.01. Definitions. Capitalized terms used in this Amendment, to
the extent not otherwise defined herein, shall have the same definitions
assigned to such terms in the Loan Agreement, as amended hereby.

                                   ARTICLE II
                        Amendments to the Loan Agreement

         Section 2.01. Amendment of Definitions. SECTION 1 of the Loan Agreement
is hereby amended by deleting the definitions of "Borrowing Base," "Committed
Sum," "Contract Rate," "Eligible Inventory," "Fixed Charge Coverage Ratio,"
"Tangible Net Worth" and "Termination Date" in their entirety and substituting
therefor the following:

                                      -1-
<PAGE>   2

                  "'Borrowing Base' means, as of any date, an amount equal to
         the sum of: (a) eighty-five percent (85%) (or such lesser percentage as
         the Lender may in its sole and absolute discretion determine from time
         to time) of Eligible Accounts on such date, PLUS (b) the lesser of (i)
         the sum of (A) sixty percent (60%) (or such lesser percentage as the
         Lender may in its sole and absolute discretion determine from time to
         time) of the value of Eligible Inventory consisting of raw material
         metal stock (based upon the lower of cost (computed on a
         first-in-first-out basis), fair market value or orderly liquidation as
         determined by Lender in its sole discretion), PLUS (B) fifty percent
         (50%) (or such lesser percentage as the Lender may in its sole and
         absolute discretion determine from time to time) of the value of
         Eligible Inventory other than metal stock (based upon the lower of cost
         (computed on a first-in-first-out basis), fair market value or orderly
         liquidation as determined by Lender in its sole discretion) or (ii) the
         lesser of (A) $4,000,000, or (B) one hundred twenty-five percent (125%)
         of the aggregate advances against Eligible Accounts from the date of
         Amendment One hereto through December 31, 2000 (and one hundred percent
         (100%) after December 31, 2000), MINUS (c) the Financial Accommodation
         Reserve, and MINUS (d) the Reserve."

                  "'Committed Sum' means $10,000,000."

                  "'Contract Rate' shall mean the sum of the Prime Rate in
         effect from time to time, plus one percent percent (1.0%); PROVIDED,
         HOWEVER, the Contract Rate shall be reduced to the sum of the Prime
         Rate in effect from time to time, plus one half of one percent (0.50%)
         in the event that (i) the Borrower's audited financial statements for
         the ten month fiscal year ending December 31, 2000 establish that
         Borrower's Net Cash Flow Available for Principal Payments for such
         fiscal year is no worse than a negative $714,000, (ii) no Default or
         Event of Default has occurred and is continuing at the time Borrower's
         audited financial statements for the fiscal year ending December 31,
         2000 are delivered to Lender, and (iii) Borrower has maintained
         $650,000 or more in Average Excess Loan Availability under the
         Revolving Facility for the twelve (12) consecutive months ending
         December 31, 2000; any such reduction in the Contract Rate resulting
         from achieving such parameters shall become effective on the first day
         of the calendar month after the Borrower's audited financial statements
         for the ten month fiscal year ending December 31, 2000 are delivered to
         Lender. If Borrower qualified for a rate reduction pursuant to the
         immediately preceding sentence, the Contract Rate shall be further
         reduced by one quarter of one percent (0.25%) (or in the event that
         Borrower did not qualify for a rate reduction pursuant to the
         immediately preceding sentence, the Contract Rate shall be reduced by
         one half of one percent (0.5%)) in the event that (i) the Borrower's
         audited financial statements for the calendar year ending December 31,
         2001 establish that Borrower's Net Cash Flow Available for Principal
         Payments for such calendar year equals or exceeds $1,021,000, (ii) no
         Default or Event of Default has occurred and is continuing at the time
         Borrower's audited financial statements for the calendar year ending
         December 31, 2001 are delivered to Lender, and (iii) Borrower has
         maintained

                                      -2-
<PAGE>   3

         $650,000 or more in Average Excess Loan Availability under the
         Revolving Facility for the twelve (12) consecutive months ending
         December 31, 2001; any such reduction in the Contract Rate resulting
         from achieving such parameters shall become effective on the first day
         of the calendar month after the Borrower's audited financial statements
         for the calendar year ending December 31, 2001 are delivered to Lender.
         Any change in the Contract Rate resulting from a change in the Prime
         Rate shall become effective on the day such change in the Prime Rate is
         announced by Lender."

                  "'Eligible Inventory' means, as at any date of determination,
         all inventory owned by and in the possession of Borrower and located in
         the United States of America that Lender, in its sole and absolute
         discretion, deems to be eligible for borrowing purposes; provided,
         however, that upon the effectiveness of Amendment One to this
         Agreement, a reserve of $100,000 shall be established (the "INITIAL
         INVENTORY RESERVE") that shall reduce the amount of Eligible Inventory
         otherwise determined hereunder, and as of each calendar month end
         occurring after the effectiveness of such Amendment One, such
         eligibility reserve shall be increased by $100,000; provided, further,
         that when Borrower delivers to Lender an inventory line item turn
         report, in form and detail satisfactory to Lender in its sole
         discretion, that establishes to Lender's satisfaction the proper amount
         of a reserve (the "TURN REPORT RESERVE") against Eligible Inventory
         equal to purchased parts raw materials and finished goods on hand in
         excess of one year's supply, as demonstrated by historical sales, such
         Turn Report Reserve shall be used in place of the Initial Inventory
         Reserve (as it may have been increased) as long as such inventory line
         item turn report is delivered to Lender within fifteen days of each
         fiscal quarter end; otherwise, the Initial Inventory Reserve shall be
         reinstated at the amount last used and shall continue to increase each
         month end by $100,000. Without limiting the generality of the
         foregoing, unless otherwise agreed by Lender, the following is not
         Eligible Inventory:

                  (a) work-in-process;

                  (b) finished goods subject to a specific purchase order which
                  do not meet the specifications of such purchase order;

                  (c) inventory which Lender determines, in its sole and
                  absolute discretion exercised in good faith, to be
                  unacceptable for borrowing purposes due to age, quality, type,
                  category, value and/or quantity;

                  (d) inventory with respect to which Lender does not have a
                  valid, first priority and fully perfected security interest;

                  (e) inventory with respect to which there exists any Lien
                  (other than a Permitted Lien) in favor of any Person other
                  than Lender;

                                      -3-
<PAGE>   4

                  (f) packaging or shipping material or maintenance supplies;

                  (g) shipping or product labels;

                  (h) inventory that is obsolete;

                  (i) inventory that has been returned or repossessed unless
                  such inventory is in new, unused and saleable condition;

                  (j) inventory that consists of used goods taken in trade;

                  (k) inventory produced in violation of the Fair Labor
                  Standards Act, in particular provisions contained in Title 29
                  U.S.C. 215 (a)(i);

                  (l) inventory located in a jurisdiction other than the United
                  States of America and inventory located at a location for
                  which Lender does not have a valid landlord's or
                  warehouseman's waiver or subordination on terms and conditions
                  acceptable to Lender in its sole discretion; and

                  (m) inventory located at any location other than those listed
                  on SCHEDULE 5.1(q), as amended from time to time."

                  "'Fixed Charge Coverage Ratio' means, for any period, the
         ratio of (i) consolidated Net Income of Borrower and its Subsidiaries
         after income taxes, PLUS, without duplication and to the extent
         deducted in determining Net Income, depreciation and amortization and
         other non-cash expenses for such period, interest expense paid in cash
         during such period, lease expense for such period, Allowed Kaizen
         Expenses for such period, Allowed Restructuring Expenses for such
         period to (ii) the sum of the following, without duplication, interest
         expense paid in cash during such period, plus lease expense for such
         period, plus current maturities of Funded Indebtedness, plus current
         maturities of Capitalized Lease Obligations, plus Non-Financed Capital
         Expenditures, plus dividends on preferred stock paid in cash, plus
         principal payments on Subordinated Indebtedness if such payments are
         permitted by the Subordination Agreement."

                  "'Tangible Net Worth' means, as applied to Borrower, the
         consolidated Net Worth of Borrower and its Subsidiaries at the time in
         question, after deducting therefrom amounts due from Affiliates and
         shareholders of such Person and all other items which should properly
         be treated as intangibles in accordance with GAAP, plus Subordinated
         Indebtedness then outstanding."

                                      -4-
<PAGE>   5

         "'Termination Date' means March 31, 2003."

         Section 2.02. Amendment of Section 1. SECTION 1 is further amended by
adding thereto the following definitions:

                  "'Allowed Kaizen Expenses' means costs and expenses incurred
         by Borrower to provide Kaizen consulting and training; provided, that,
         such costs and expenses shall not exceed an aggregate $360,000 for
         calendar year 2001, $300,000 for calendar year 2002 and $60,000 for the
         period from January 1, 2003 through the Termination Date."

                  "'Allowed Restructuring Expenses' means costs and expenses
         incurred by Borrower related to the merger of Long Reach Holdings, Inc.
         into TBM Acquisition I, Inc. during calendar year 2000; provided, that,
         such costs and expenses shall not exceed an aggregate $1,250,000 for
         calendar year 2000 and an aggregate $500,000 for calendar year 2001 and
         no amount in subsequent years."

                  "'Average Excess Loan Availability' means, for any period, the
         amount obtained by, first, adding the difference, as of the end of each
         day during such period, between (i) the Borrowing Base and (ii) the
         unpaid principal balance of the Revolving Loan and, then, by dividing
         such sum by the number of days in such period."

                  "'EBITDA' means, for any period, the consolidated Net Income
         of Borrower and its Subsidiaries for such period, PLUS, without
         duplication and to the extent deducted from revenues in determining Net
         Income for such period, (a) the aggregate amount of income tax expense
         for such period, (b) the aggregate amount of interest expense for such
         period, and (c) all amounts attributable to depreciation and
         amortization for such period, and MINUS, without duplication and to the
         extent added to revenues in determining Net Income for such period, all
         non-cash non-recurring gains during such period, in each case
         determined in accordance with GAAP."

                  "'Loan Availability' means, at any time of determination, the
         amount, if any, by which the Borrowing Base at such time exceeds the
         unpaid principal balance of the Revolving Loan at such time."

                  "'Net Cash Flow Available for Principal Payments' means, for
         any period, EBITDA for such period, LESS the sum of the following
         without duplication: interest expense paid in cash during such period,
         income taxes due with respect to such period, the increase or decrease
         in non-cash working capital for such period, Non-Financed Capital
         Expenditures made during such period, costs and expenses incurred by
         Borrower in such period to provide Kaizen consulting and training, and
         restructuring expenses incurred by Borrower in such period (not
         including, with respect to Kaizen expenses and restructuring expenses,
         amounts reserved for such expenses but not charged against

                                      -5-
<PAGE>   6

         income for such period), in each case determined in accordance with
         GAAP unless otherwise defined herein."

         Section 2.03. Amendment of Section 2.6. SECTION 2.6 of the Loan
Agreement is hereby amended in its entirety to read as follows:

                  "Section 2.6 Repayment of Term Loan. The Term Loan is due and
         payable as follows: (i) accrued and unpaid interest, calculated at the
         rate set forth in SECTION 3.1, shall be due and payable commencing on
         MARCH 1, 2000, and continuing on the first (1st) day of each month
         thereafter, and (ii) principal installments (a) in the amount of
         $60,000 each shall be due and payable on the first (1st) day of each
         month, commencing on JANUARY 1, 2001, and continuing thereafter through
         and including DECEMBER 1, 2001, and (b) in the amount of $50,000 each
         shall be due and payable on the first (1st) day of each month,
         commencing on JANUARY 1, 2002, and continuing thereafter through the
         Termination Date, when the then unpaid principal balance of the Term
         Loan, together with all accrued and unpaid interest, shall be due and
         payable in full."

         Section 2.04 Amendment of Section 3.2. SECTION 3.2 of the Loan
Agreement is hereby amended by adding thereto the following as subsection (g):

                  "(g) Borrower shall pay to Lender, in consideration of
         consenting to the merger of Borrower and TBM Acquisition I, Inc. and
         entering into Amendment One to the Loan Agreement and waiving the
         Events of Default existing prior to the execution of Amendment One, a
         closing fee of $125,000, one-half payable upon execution of Amendment
         One and the remaining amount payable on or before the earlier of (i)
         the termination of this Agreement or (ii) April 1, 2001. Such closing
         fee shall be fully earned upon the execution of Amendment One to the
         Loan Agreement."

         Section 2.05. Amendment of Section 3.5(b). SECTION 3.5(b) of the Loan
Agreement is hereby amended in its entirety to read as follows:

                  "(b) Early Termination. Upon 60 days prior written notice to
         the Lender, the Borrower may terminate this Agreement prior to the
         Termination Date. If Borrower terminates this Agreement prior to the
         Termination Date, Borrower acknowledges that (i) such termination would
         result in the loss to Lender of the benefits of this Agreement and that
         the damages incurred by Lender as a result of such termination are and
         would be difficult of ascertainment, and (ii) no such termination shall
         be effective until Borrower has paid to Lender all of the Obligations
         in immediately available funds, together with a sum certain as
         liquidated damages. Such liquidated damages, being Borrower' and
         Lender's best and fairest estimate of Lender's damages caused by such
         termination, shall be equal to (i) $100,000 if the termination occurs
         on or prior to March 31, 2001, (ii)

                                      -6-
<PAGE>   7

         $75,000 if the termination occurs after March 31, 2001 but on or prior
         to March 31, 2002. No liquidated damages will be payable if the
         termination occurs after March 31, 2002."

         Section 2.06. Amendment of Section 4.3. SECTION 4.3(f) of the Loan
Agreement is hereby amended in its entirety to read as follows:

                  "(f) Adverse Change. No changes having a Material Adverse
         Effect (or that could reasonably be expected to cause or have a
         Material Adverse Effect) have occurred since the date of Amendment One
         to this Agreement."

         Section 2.07. Amendment of Section 6.1. SECTION 6.1 of the Loan
Agreement is hereby amended in its entirety to read as follows:

                  "Section 6.1 Security Interest. To secure the payment and
         performance of the Obligations, Borrower hereby mortgages, pledges and
         assigns to Lender for itself, and as agent for its Affiliates, all of
         the Collateral, and grants to Lender for itself, and as agent for its
         Affiliates, a security interest and Lien in and upon, all of the
         Collateral."

         Section 2.08. Amendment of Article VI. ARTICLE VI of the Loan Agreement
is hereby amended by adding thereto the following as SECTION 6.15:

                  "Section 6.15 Release of Houston Real Estate. Upon the
         effectiveness of Amendment One to this Agreement, Lender shall release
         the Borrower's Little Rock, Arkansas real estate from any Lien. Lender
         agrees to release the Borrower's Houston, Texas real estate from any
         Lien if, but only if, (i) Borrower's Net Cash Flow Available for
         Principal Payments for the calendar year ending December 31, 2001, as
         established by Borrower's audited financial statements for such year,
         equals or exceeds $1,021,000 and (ii) at the time such financial
         statements are delivered to Lender there is no Default or Event of
         Default then existing."

         Section 2.09. Amendment of Section 8.1. SECTION 8.1(b) of the Loan
Agreement is hereby amended in its entirety to read as follows:

                  "(b) Monthly Financial Statements. As soon as available, but
         in any event within forty (40) days after the end of each month of
         Borrower, copies of the unaudited consolidated balance sheet of
         Borrower and its Subsidiaries as of the end of such month and the
         related unaudited income statement for Borrower and its Subsidiaries
         for such month and for the portion of the fiscal year of Borrower
         through such month, certified by the chief financial officer of
         Borrower as presenting fairly the financial condition and results of
         operations of the Borrower and its Subsidiaries as of the date thereof
         and for the periods ended on such date, subject to normal year end
         adjustments."

                                      -7-
<PAGE>   8

         Section 2.10. Amendment of Section 8.4. SECTION 8.4 of the Loan
Agreement is hereby amended by adding thereto the following as subsection (c):

                  "(c) Within five Business Days of the filing thereof, copies
         of all Forms 10-K and Forms 10-Q filed by TBM Holdings, Inc. with the
         Securities Exchange Commission."

         Section 2.11. Amendment of Section 9.1. SECTION 9.1 of the Loan
Agreement is hereby amended by deleting subsections (b) and (c) in their
entirety and substituting therefor the following subsections (b) and (c) and
adding thereto the following subsection (d):

                  "(b) Minimum Fixed Charge Coverage Ratio. Permit, as of the
         last day of any calendar month during any period set forth below, the
         Fixed Charge Coverage Ratio for such month, to be less than the ratio
         set forth opposite such period below:

<TABLE>
<CAPTION>
            Period                                   Fixed Charge Coverage Ratio
            ------                                   ---------------------------
<S>                                                  <C>
January 1, 2001 through December 31, 2001                     1.00 to 1.0
January 1, 2002 and thereafter                                1.10 to 1.0
</TABLE>

                  (c) Minimum Tangible Net Worth. Permit the Tangible Net Worth
         of Borrower and its Subsidiaries on the date of Amendment One to this
         Agreement to be less than $7,500,000 less balance sheet adjustments
         proposed by Borrower within thirty (30) days of the date of such
         Amendment One and to which Lender consents in writing (such balance
         sheet adjustments are referred to herein as the "ADJUSTMENTS") or
         permit, at any time during any period set forth below, the consolidated
         Tangible Net Worth of Borrower and its Subsidiaries to be less than the
         amount set forth opposite such period below:

<TABLE>
<CAPTION>
                  Period                                               Minimum Tangible Net Worth
                  ------                                               --------------------------
<S>                                                                   <C>
         Effective Date through September 29, 2001                    $5,000,000 less the Adjustments
         September 30, 2001 through December 30, 2001                 $5,250,000 less the Adjustments
         December 31, 2001 through March 30, 2002                     $5,500,000 less the Adjustments
         March 31, 2002 through June 29, 2002                         $5,750,000 less the Adjustments
         June 30, 2002 through September 29, 2002                     $6,250,000 less the Adjustments
         September 30, 2002 and thereafter                            $6,500,000 less the Adjustments
</TABLE>

                  (d) Minimum Net Income. Permit its Net Income for any period
         set forth below to be more negative than the negative amount set forth
         opposite such period below:

                                      -8-
<PAGE>   9

<TABLE>
<CAPTION>
                  Period                                            Minimum Net Income
<S>                                                                 <C>
         Fiscal quarter ending June 30, 2000                         $(650,000)
         Fiscal quarter ending September 30, 2000                    $(950,000)
         Fiscal quarter ending December 31, 2000                     $(600,000)
         Fiscal quarter ending March 31, 2001                        $(600,000)
         Two consecutive Fiscal quarters ending June 30, 2001        $(377,000)"
</TABLE>

         Section 2.12. Amendment of Section 9.2. SECTION 9.2 of the Loan
Agreement is hereby amended in its entirety to read as follows:

                  "Section 9.2 Investments. Acquire any Investment or permit any
         Investment to be outstanding, other than Permitted Investments and
         other than Investments (a) with respect to which Borrower has provided
         to Lender at least fifteen (15) days written notice prior to the
         closing thereof and (b) which (i) constitute the acquisition of a
         company or product line that have products complimentary with Borrower
         and its Subsidiaries and (ii) entail either consolidation of existing
         production facilities or cost savings in general and administrative
         expenses by selling products through existing channels with Borrower's
         sales representative and independent sales representatives and (c) the
         integration of which or the consummation of which will not cause a
         Default or Event of Default."

         Section 2.13. Amendment of Section 9.3. SECTION 9.3 of the Loan
Agreement is hereby amended in its entirety to read as follows:

                  "Section 9.3 Prohibited Distributions and Payments, Etc.
         Declare or make any Prohibited Distribution or Prohibited Payment;
         provided, that Borrower may declare and pay dividends to TBM Holdings,
         Inc. ("HOLDINGS"), in an aggregate amount equal to the income tax
         liability of Holdings attributable to the separate taxable income of
         Borrower and its Subsidiaries.

         Section 2.14. Amendment of Section 9.6. SECTION 9.6 of the Loan
Agreement is hereby amended in its entirety to read as follows:

                  "Section 9.6 Merger, Consolidation, Sale of Assets,
         Acquisitions. (i) Merge or consolidate with any other Person or (ii)
         sell, lease or transfer or otherwise dispose of all or a substantial
         portion of Borrower's assets to any Person or (iii) acquire all or
         substantially all of the assets of any Person or the assets
         constituting the business or a division or operating unit of any Person
         unless with respect to such acquisition the parameters for Investments
         set forth in SECTION 9.2 are met."

         Section 2.12. Amendment of Section 9.9. SECTION 9.9 of the Loan
Agreement is hereby deleted in its entirety and replace with the following:

                  "Section 9.9 [This section is intentionally omitted.]"

                                      -9-
<PAGE>   10

         Section 2.13. Amendment of Section 9.13. SECTION 9.13 of the Loan
Agreement is hereby amended in its entirety to read as follows:

                  "Section 9.13 Management Fees. Directly or indirectly pay or
         agree to pay any management, consulting, training or similar fees and
         expenses (other than payments to consultants hired by Borrower in lieu
         of salaries paid to officers of Borrower) to any Person that exceed, in
         the aggregate for any calendar year, the amounts set forth below for
         the applicable calendar year:

<TABLE>
<CAPTION>
        Applicable Calendar Year                       Maximum Aggregate Amount
<S>                                                    <C>
         2000                                          $450,000
         2001                                          $450,000
         2002                                          $375,000
         2003 through the Termination Date             $75,000
</TABLE>

         provided, that the existing contractual obligation of TBM Holdings,
         Inc. to Colt Capital Group, Inc. in the amount of $150,000 per year,
         payable monthly, may be paid in addition to the management fees
         permitted by this Section 9.13 as long as no Event of Default is
         existing at the time of such payment or would be caused thereby."

         Section 2.14. Amendment of Article IX. ARTICLE IX of the Loan Agreement
is hereby amended by adding thereto the following as SECTION 9.14 and SECTION
9.15:

                  "Section 9.14 Minimum Availability. Permit its Loan
         Availability at any time to be less than $400,000."

                  "Section 9.15 Balance Sheet Adjustments. Make any adjustments
         to its balance sheet as at the date of Amendment One hereto without the
         prior written consent of Lender."

         Section 2.15. Amendment of Section 10.1. SECTIONS 10.1(o) AND 10.1(p)
of the Loan Agreement are hereby amended in their entirety to read as follows:

                  "(o) TBM Holdings, Inc., shall cease to own a majority of the
         outstanding shares of capital stock of Borrower entitled to vote for
         directors (including stock that has been issued following the exercise
         or conversion of any warrants or convertible securities owned by any
         Person);

                                      -10-
<PAGE>   11

                  (p) William A. Schwartz shall for any reason cease to serve as
         President of TBM Holdings, Inc., or William J. Sample shall for any
         reason no longer serve as either the Vice President or Chief Executive
         Officer of Borrower and 60 days shall have elapsed during which time no
         replacement reasonably satisfactory to the Lender shall have been
         appointed; or"

         Section 2.16. Amendment of Section 10.1. SECTION 10.1 of the Loan
Agreement shall be further amended by adding thereto the following as subsection
(q):

                  "(q) TBM Holdings, Inc. shall (i) repudiate its obligations
         under, or commit an anticipatory breach of, its unlimited guaranty of
         the Obligations executed for the benefit of Lender or (ii) attempt to
         terminate such guaranty or (iii) commence any legal proceeding to
         terminate or hold invalid in any respect such guaranty."

                                   ARTICLE III
                              Conditions Precedent
                              --------------------

         Section 3.01. Conditions Precedent. The effectiveness of this Amendment
is subject to the satisfaction of the following conditions precedent, unless
specifically waived in writing by Lender:

                  (a) The representations and warranties of Borrower contained
         herein and of Borrower and TBM Acquisition I, Inc. in the Merger
         Agreement shall be true and correct as of the date hereof as if made on
         the date hereof;

                  (b) After giving effect to the provisions of this Amendment,
         no Default or Event of Default shall have occurred and be continuing
         under the Loan Agreement;

                  (c) Lender shall have received this Amendment and the Renewal
         and Extension Revolving Note and the Renewal and Extension Term Note in
         the forms of EXHIBIT A and EXHIBIT B attached hereto, duly executed by
         Borrower;

                  (d) TBM Holdings, Inc. shall have executed and delivered to
         Lender an unlimited guaranty of the Obligations, in form and substance
         acceptable to Lender in its sole discretion;

                  (e) Lender shall receive an opinion of Borrower's counsel, in
         form and substance acceptable to Lender in its sole discretion;

                  (f) Upon the Merger, Borrower shall make such payments to
         Lender as are necessary to reduce the outstanding principal balance of
         the Revolving Loan to

                                      -11-
<PAGE>   12

         $5,500,000 and to reduce the outstanding principal balance of the Term
         Loan to $2,500,000;

                  (g) Borrower's Loan Availability upon the effectiveness of the
         Merger and after all payments required in connection with the Merger or
         as conditions to effectiveness of this Amendment shall be at least
         $1,000,000;

                  (h) Upon the effectiveness of the Merger, the outstanding
         principal of Subordinated Debt of the Borrower shall not exceed
         $4,000,000;

                  (i) Patrick H. Peyton shall be serving as Borrower's Chief
         Financial Officer;

                  (j) The holders of the Subordinated Debt shall have executed
         and delivered to Lender amendments of the Subordination Agreements
         governing such Subordinated Debt in form and substance acceptable to
         Lender in its sole discretion;

                  (k) Lender shall have received from a title insurance company
         acceptable to Lender in its sole discretion a Commitment for Mortgagee
         Policy of Title Insurance on Borrower's Houston, Texas real estate
         providing for the issuance of mortgagee title policy in the amount of
         $2,100,000 and containing only such exceptions as are acceptable to
         Lender in its sole discretion;

                  (l) Borrower shall have executed and delivered to Lender a
         Modification of Deed of Trust in such form and content as is required
         by Lender in its sole discretion relating to Borrower's Houston, Texas
         real estate;

                  (m) Borrower shall have paid to Lender, in consideration of
         consenting to the Merger and amending the Loan Agreement as set forth
         herein and waiving the Events of Default existing prior hereto,
         one-half of the $125,000 closing fee;

                  (n) Borrower shall have delivered to Lender certified board of
         directors resolutions and certificates of incumbency, in such form and
         content as is acceptable to Lender in its sole discretion, for both
         Borrower and TBM Holdings, Inc.;

                  (o) Borrower shall have delivered to Lender a Certificate of
         Merger issued by the Secretary of State of Delaware certifying that the
         Merger has become effective;

                  (p) Borrower shall execute and deliver to Lender such
         financing statements and amendments to financing statements as Lender
         shall require for filing with various governmental offices;

                                      -12-
<PAGE>   13

                  (q) All corporate proceedings taken in connection with the
         transactions contemplated by this Amendment and all documents,
         instruments and other legal matters incident thereto shall be
         reasonably satisfactory to Lender and its legal counsel.

                                   ARTICLE IV
                 Ratifications, Representations, and Warranties
                 ----------------------------------------------

         Section 4.01. Ratifications by Borrower. The terms and provisions set
forth in this Amendment shall modify and supersede all inconsistent terms and
provisions set forth in the Loan Agreement and, except as expressly modified and
superseded by this Amendment, the terms and provisions of the Loan Agreement are
ratified and confirmed and shall continue in full force and effect. The Loan
Agreement as amended by this Amendment shall continue to be the legal, valid,
binding and enforceable in accordance with its terms. Borrower, as the surviving
corporation of the Merger, acknowledges that it is primarily liable for all
Obligations, now existing or hereafter arising under the Loan Agreement.

         Section 4.02. Renewal and Extension of Security Interests and
Assignments. Borrower hereby renews and affirms the liens and security interests
created and granted in the Loan Agreement and all other Loan Documents. Borrower
agrees that this Amendment shall in no manner affect or impair the liens and
security interests securing the Obligations, and that such liens and security
interests shall not in any manner be waived, the purposes of this Amendment
being to modify the Loan Agreement as herein provided, and to carry forward all
liens and security interest securing same, which are acknowledged by Borrower to
be valid and subsisting.

         Section 4.03. Representations and Warranties. Borrower represents and
warrants to Lender as follows: (i) the execution, delivery and performance of
this Amendment and any and all other Loan Documents executed and/or delivered in
connection herewith have been authorized by all requisite corporate action on
the part of Borrower and will not violate the articles of incorporation or
bylaws of Borrower or any agreement to which Borrower is a party; (ii) the
representations and warranties of Borrower and TBM Acquisition I, Inc.,
contained in the Merger Agreement are true and correct on and as of the date
hereof as though made on and as of the date hereof; (iii) no Default or Event of
Default under the Loan Agreement as amended hereby has occurred and is
continuing; and (iv) Borrower is in full compliance with all covenants and
agreements contained in the Loan Agreement, as amended hereby.

         Section 4.04. Waiver of Defaults. Upon the effectiveness of this
Amendment, any and all Defaults and Events of Default that previously existed
under the Loan Agreement prior to amendment hereby or under any of the other
Loan Documents shall be waived.

                                      -13-
<PAGE>   14

                                    ARTICLE V
                                  Miscellaneous
                                  -------------

         Section 5.01. Survival of Representations and Warranties. All
representations and warranties made in the Merger Agreement, this Amendment or
any other Loan Document furnished in connection with this Amendment shall
survive the execution and delivery of this Amendment and the other Loan
Documents, and no investigation by Lender or any closing shall affect such
representations and warranties or the right of Lender to rely thereon.

         Section 5.02. Reference to Loan Agreement. Each of the Loan Documents,
including the Loan Agreement and any and all other agreements, documents or
instruments now or hereafter executed and delivered pursuant to the terms hereof
or pursuant to the terms of the Loan Agreement as amended hereby, are hereby
amended so that any reference in such Loan Documents to the Loan Agreement shall
mean a reference to the Loan Agreement as amended hereby.

         Section 5.03. Expenses of Lender. Borrower agrees to pay on demand all
costs and expenses incurred by Lender in connection with the preparation,
negotiation and execution of this Amendment and the other Loan Documents
executed pursuant hereto (provided that the legal fees reimbursable by Borrower
for the preparation, negotiation and execution of this Amendment and such Loan
Documents shall be limited to $10,000). Borrower agrees to pay on demand all
costs and expenses incurred by Lender in connection with any and all future
amendments, modifications, and supplements to the Loan Agreement, including,
without limitation, the costs and fees of Lender's legal counsel, and all costs
and expenses incurred by Lender in connection with the enforcement or
preservation of any rights under the Loan Agreement, as amended hereby, or any
other Loan Document, including, without limitation, the reasonable costs and
fees of Lender's legal counsel.

         Section 5.04. Severability. Any provision of this Amendment held by a
court of competent jurisdiction to be invalid or unenforceable shall not impair
or invalidate the remainder of this Amendment and the effect thereof shall be
confined to the provision so held to be invalid or unenforceable.

         SECTION 5.05. APPLICABLE LAW. THIS AMENDMENT SHALL BE DEEMED TO HAVE
BEEN MADE AND TO BE PERFORMABLE IN AND SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS AND APPLICABLE FEDERAL LAW.

         Section 5.06. Successors and Assigns. This Amendment is binding upon
and shall inure to the benefit of the parties hereto and their respective
successors, assigns, heirs, executors, and

                                      -14-
<PAGE>   15

legal representatives, except that none of the parties hereto other than Lender
may assign or transfer any of its rights or obligations hereunder without the
prior written consent of Lender.

         Section 5.07. Counterparts. This Amendment may be executed in one or
more counterparts, each of which when so executed shall be deemed to be an
original, but all of which when taken together shall constitute one and the same
instrument. This Amendment may be executed and delivered by facsimile
transmission.

         Section 5.08. Headings. The headings, captions, and arrangements used
in this Amendment are for convenience only and shall not affect the
interpretation of this Amendment.

         Section 5.09. Conflicting Provisions. If any provision of the Loan
Agreement as amended hereby conflicts with any provision of any other Loan
Document, the provision in the Loan Agreement shall control.

         SECTION 5.10. RELEASE. AS OF THE DATE HEREOF, BORROWER HEREBY
ACKNOWLEDGES THAT BORROWER HAS NO DEFENSE, COUNTERCLAIM, OFFSET,
CROSS-COMPLAINT, CLAIM OR DEMAND OF ANY KIND OR NATURE WHATSOEVER THAT CAN BE
ASSERTED TO REDUCE OR ELIMINATE ALL OR ANY PART OF BORROWER'S LIABILITY TO REPAY
THE LOAN OR TO SEEK AFFIRMATIVE RELIEF OR DAMAGES OF ANY KIND OR NATURE FROM
LENDER. BORROWER VOLUNTARILY AND KNOWINGLY RELEASES AND FOREVER DISCHARGES
LENDER, ITS PREDECESSORS, AGENTS, EMPLOYEES, SUCCESSORS AND ASSIGNS, FROM ALL
POSSIBLE CLAIMS, DEMANDS, ACTIONS, CAUSES OF ACTION, DAMAGES, COSTS, EXPENSES,
AND LIABILITIES WHATSOEVER, KNOWN OR UNKNOWN, ANTICIPATED OR UNANTICIPATED,
SUSPECTED OR UNSUSPECTED, FIXED, CONTINGENT, OR CONDITIONAL, AT LAW OR IN
EQUITY, ORIGINATING IN WHOLE OR IN PART ON OR BEFORE THE DATE THIS AMENDMENT IS
EXECUTED, WHICH BORROWER MAY NOW OR HEREAFTER HAVE AGAINST LENDER, ITS
PREDECESSORS, AGENTS, EMPLOYEES, SUCCESSORS AND

                                      -15-
<PAGE>   16

ASSIGNS, IF ANY, AND IRRESPECTIVE OR WHETHER ANY SUCH CLAIMS ARISE OUT OF
CONTRACT, TORT, VIOLATION OF LAW OR REGULATIONS, OR OTHERWISE, AND ARISING FROM
ANY LOAN, INCLUDING, WITHOUT LIMITATION, ANY CONTRACTING FOR, CHARGING, TAKING,
RESERVING, COLLECTING OR RECEIVING INTEREST IN EXCESS OF THE HIGHEST LAWFUL RATE
APPLICABLE, THE EXERCISE OF ANY RIGHTS AND REMEDIES UNDER THE LOAN AGREEMENT OR
OTHER LOAN DOCUMENTS, AND NEGOTIATION FOR AND EXECUTION OF THIS AMENDMENT.

         Section 5.11 Forbearance Agreement. The First Amended and Restated
Forbearance Agreement (the "FORBEARANCE AGREEMENT") among Lender, Borrower and
the Subordinated Creditors named therein, dated as of January 31, 2000, is
terminated upon the effectiveness of this Amendment, and accordingly Lender's
obligations (i) to forbear from exercising any rights or remedies upon the
occurrence of a Default or Event of Default and (ii) to make any overadvances to
Borrower shall likewise terminate.

         SECTION 5.12. ENTIRE AGREEMENT. THIS AMENDMENT, THE LOAN AGREEMENT AND
ALL OTHER LOAN DOCUMENTS EXECUTED AND DELIVERED IN CONNECTION WITH AND PURSUANT
TO THIS AMENDMENT AND THE LOAN AGREEMENT REPRESENT THE FINAL AGREEMENT BETWEEN
THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS,
OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL
AGREEMENTS BETWEEN THE PARTIES.

         EXECUTED as of the date first written above.

LONG REACH HOLDINGS, INC.                  BANK ONE, TEXAS, NATIONAL ASSOCIATION

    /s/ William A. Schwartz                    /s/ F. W. McCollum
By:_____________________________           By:____________________________
          William A. Schwartz                         F. W. McCollum
    Name:_________________________              Name:_________________________
           CEO                                        Vice President
    Title:__________________________            Title:__________________________

                                      -16-<PAGE>   1
                                                                    EXHIBIT 10.5

                               UNLIMITED GUARANTY

         THIS UNLIMITED GUARANTY ("Guaranty") is made as of February 23, 2000,
by Guarantor (as hereinafter defined) for the benefit of Bank (as hereinafter
defined).

         1. Definitions. As used in this Guaranty, the following terms shall
have the meanings indicated below:

                  (a) The term "Bank" shall mean BANK ONE, TEXAS, NATIONAL
         ASSOCIATION, whose address for notice purposes is the following:

                  1717 Main, 3rd Floor
                  Dallas,  Dallas County, Texas 75201
                  Attn: Asset Based Lending Dept.

                  (b) The term "Borrower" shall mean Long Reach Holdings, Inc.,
         a Delaware corporation, and the survivor by merger of Long Reach
         Holdings, Inc., a Delaware corporation, into TBM Acquisition I, Inc, a
         Delaware corporation.

                  (c) The term "Guaranteed Indebtedness" shall mean (i) all
         indebtedness, obligations and liabilities of Borrower to Bank of any
         kind or character, now existing or hereafter arising, whether direct,
         indirect, related, unrelated, fixed, contingent, liquidated,
         unliquidated, joint, several or joint and several, and regardless of
         whether such indebtedness, obligations and liabilities may, prior to
         their acquisitions by Bank, be or have been payable to or in favor of a
         third party and subsequently acquired by Bank (it being contemplated
         that Bank may make such acquisitions from third parties), including
         without limitation all indebtedness, obligations and liabilities of
         Borrower to Bank now existing or hereafter arising by note, draft,
         acceptance, guaranty, endorsement, letter of credit, assignment,
         purchase, overdraft, discount, indemnity agreement or otherwise, (ii)
         all accrued but unpaid interest on any of the indebtedness described in
         (i) above (including, without limitation, all interest which would have
         accrued but for the filing of a petition under the United States
         Bankruptcy Code, as amended, or any other bankruptcy or insolvency
         law), (iii) all obligations of Borrower to Bank under any documents
         evidencing, securing, governing and/or pertaining to all or any part of
         the indebtedness described in (i) and (ii) above (collectively, the
         "Loan Documents"), (iv) all Obligations as defined in that certain Loan
         and Security Agreement dated as of April 20, 1999 between Borrower and
         Bank, as amended from time to time, (v) all costs and expenses incurred
         by Bank in connection with the collection and administration of all or
         any part of the indebtedness and obligations described in (i), (ii),
         (iii) and (iv) above or the protection or preservation of, or
         realization upon, the collateral securing all or any part of such

UNLIMITED GUARANTY - PAGE 1
<PAGE>   2
         indebtedness and obligations, including without limitation all
         reasonable attorneys' fees (including, without limitation, attorneys'
         fees and expenses incurred by Bank in connection with any proceedings
         involving Guarantor or Borrower under the United States Bankruptcy
         Code, as amended, or any other bankruptcy or insolvency law) and (vi)
         all renewals, extensions, modifications and rearrangements of the
         indebtedness and obligations described in (i), (ii), (iii),(iv) and (v)
         above.

                  (d) The term "Guarantor" shall mean TBM HOLDINGS, INC., a
         Delaware corporation, whose address for notice purposes is the
         following:

                  136 Main Street
                  Westport, Connecticut 06880.

         2. Obligations. As an inducement to Bank to extend or continue to
extend credit and other financial accommodations to Borrower, Guarantor, for
value received, does hereby unconditionally and absolutely guarantee the prompt
and full payment and performance of the Guaranteed Indebtedness when due or
declared to be due and at all times thereafter.

         3. Character of Obligations. This is an absolute, continuing and
unconditional guaranty of payment and not of collection and if at any time or
from time to time there is no outstanding Guaranteed Indebtedness, the
obligations of Guarantor with respect to any and all Guaranteed Indebtedness
incurred thereafter shall not be affected. All Guaranteed Indebtedness
heretofore, concurrently herewith or hereafter made by Bank to Borrower shall be
conclusively presumed to have been made or acquired in acceptance hereof.
Guarantor shall be liable, jointly and severally, with Borrower and any other
guarantor of all or any part of the Guaranteed Indebtedness.

         4. Right of Revocation. Guarantor understands and agrees that Guarantor
may revoke its future obligations under this Guaranty at any time by giving Bank
written notice that Guarantor will not be liable hereunder for any indebtedness
or obligations of Borrower incurred on or after the effective date of such
revocation. Such revocation shall be deemed to be effective on the day following
the day Bank receives such notice delivered either by: (a) personal delivery or
delivery by nationally recognized overnight service to the address and
designated department of Bank identified in subparagraph 1(a) above, or (b)
United States mail, registered or certified, return receipt requested, postage
prepaid, addressed to Bank at the address shown in subparagraph 1(a) above.
Notwithstanding such revocation, Guarantor shall remain liable on its
obligations hereunder until payment in full to Bank of (x) all of the Guaranteed
Indebtedness that is outstanding on the effective date of such revocation, and
any renewals and extensions thereof, and (y) all loans, advances and other
extensions of credit made to or for the account of Borrower on or after the
effective date of such revocation pursuant to the obligation of Bank under a
commitment or agreement made to or with Borrower prior to the effective date of
such

UNLIMITED GUARANTY - PAGE 2
<PAGE>   3
revocation. The terms and conditions of this Guaranty, including without
limitation the consents and waivers set forth in paragraph 7 hereof, shall
remain in effect with respect to the Guaranteed Indebtedness described in the
preceding sentence in the same manner as if such revocation had not been made by
Guarantor.

         5. Representations and Warranties. Guarantor hereby represents and
warrants the following to Bank:

                  (a) This Guaranty may reasonably be expected to benefit,
         directly or indirectly, Guarantor, and (i) if Guarantor is a
         corporation, the Board of Directors of Guarantor has determined that
         this Guaranty may reasonably be expected to benefit, directly or
         indirectly, Guarantor, or (ii) if Guarantor is a partnership, the
         requisite number of its partners have determined that this Guaranty may
         reasonably be expected to benefit, directly or indirectly, Guarantor;
         and

                  (b) Guarantor is familiar with, and has independently reviewed
         the books and records regarding, the financial condition of Borrower
         and is familiar with the value of any and all collateral intended to be
         security for the payment of all or any part of the Guaranteed
         Indebtedness; provided, however, Guarantor is not relying on such
         financial condition or collateral as an inducement to enter into this
         Guaranty; and

                  (c) Guarantor has adequate means to obtain from Borrower on a
         continuing basis information concerning the financial condition of
         Borrower and Guarantor is not relying on Bank to provide such
         information to Guarantor either now or in the future; and

                  (d) Guarantor has the power and authority to execute, deliver
         and perform this Guaranty and any other agreements executed by
         Guarantor contemporaneously herewith, and the execution, delivery and
         performance of this Guaranty and any other agreements executed by
         Guarantor contemporaneously herewith do not and will not violate (i)
         any agreement or instrument to which Guarantor is a party, (ii) any
         law, rule, regulation or order of any governmental authority to which
         Guarantor is subject, or (iii) its articles or certificate of
         incorporation or bylaws, if Guarantor is a corporation, or its
         partnership agreement, if Guarantor is a partnership; and

                  (e) Neither Bank nor any other party has made any
         representation, warranty or statement to Guarantor in order to induce
         Guarantor to execute this Guaranty; and

                  (f) The financial statements and other financial information
         regarding Guarantor heretofore and hereafter delivered to Bank are and
         shall be true and correct in all material respects and fairly present
         the financial position of Guarantor as of the dates thereof, and no
         material adverse change has occurred in the financial condition of

UNLIMITED GUARANTY - PAGE 3
<PAGE>   4
         Guarantor reflected in the financial statements and other financial
         information regarding Guarantor heretofore delivered to Bank since the
         date of the last statement thereof; and

                  (g) As of the date hereof, and after giving effect to this
         Guaranty and the obligations evidenced hereby, (i) Guarantor is and
         will be solvent, (ii) the fair saleable value of Guarantor's assets
         exceeds and will continue to exceed its liabilities (both fixed and
         contingent), (iii) Guarantor is and will continue to be able to pay its
         debts as they mature, and (iv) if Guarantor is not an individual,
         Guarantor has and will continue to have sufficient capital to carry on
         its business and all businesses in which it is about to engage.

         6. Covenants. Guarantor hereby covenants and agrees with Bank as
follows:

                  (a) Guarantor shall not, so long as its obligations under this
         Guaranty continue, transfer or pledge any material portion of its
         assets for less than full and adequate consideration; and

                  (b) Guarantor shall promptly furnish to Bank at any time and
         from time to time such financial statements and other financial
         information of Guarantor as the Bank may reasonably require, in form
         and substance satisfactory to Bank; and

                  (c) Guarantor shall comply with all terms and provisions of
         the Loan Documents that apply to Guarantor; and

                  (d) Guarantor shall promptly inform Bank of (i) any litigation
         or governmental investigation against Guarantor or affecting any
         security for all or any part of the Guaranteed Indebtedness or this
         Guaranty which, if determined adversely, might have a material adverse
         effect upon the financial condition of Guarantor or upon such security
         or might cause a default under any of the Loan Documents, (ii) any
         claim or controversy which might become the subject of such litigation
         or governmental investigation, and (iii) any material adverse change in
         the financial condition of Guarantor.

         7.       Consent and Waiver.

                  (a) Guarantor waives (i) promptness, diligence and notice of
         acceptance of this Guaranty and notice of the incurring of any
         obligation, indebtedness or liability to which this Guaranty applies or
         may apply and waives presentment for payment, notice of nonpayment,
         protest, demand, notice of protest, notice of intent to accelerate,
         notice of acceleration, notice of dishonor, diligence in enforcement
         and indulgences of every kind, and (ii) the taking of any other action
         by Bank, including without limitation, giving any

UNLIMITED GUARANTY - PAGE 4
<PAGE>   5
         notice of default or any other notice to, or making any demand on,
         Borrower, any other guarantor of all or any part of the Guaranteed
         Indebtedness or any other party.

                  (b) Guarantor waives any rights Guarantor has under, or any
         requirements imposed by, Chapter 34 of the Texas Business and Commerce
         Code, as in effect on the date of this Guaranty or as it may be amended
         from time to time.

                  (c) Bank may at any time, without the consent of or notice to
         Guarantor, without incurring responsibility to Guarantor and without
         impairing, releasing, reducing or affecting the obligations of
         Guarantor hereunder: (i) change the manner, place or terms of payment
         of all or any part of the Guaranteed Indebtedness, or renew, extend,
         modify, rearrange, increase or alter all or any part of the Guaranteed
         Indebtedness; (ii) change the interest rate accruing on any of the
         Guaranteed Indebtedness (including, without limitation, any periodic
         change in such interest rate that occurs because such Guaranteed
         Indebtedness accrues interest at a variable rate which may fluctuate
         from time to time); (iii) sell, exchange, release, surrender,
         subordinate, realize upon or otherwise deal with in any manner and in
         any order any collateral for all or any part of the Guaranteed
         Indebtedness or this Guaranty or setoff against all or any part of the
         Guaranteed Indebtedness; (iv) neglect, delay, omit, fail or refuse to
         take or prosecute any action for the collection of all or any part of
         the Guaranteed Indebtedness or this Guaranty or to take or prosecute
         any action in connection with any of the Loan Documents; (v) exercise
         or refrain from exercising any rights against Borrower or others, or
         otherwise act or refrain from acting; (vi) settle or compromise all or
         any part of the Guaranteed Indebtedness and subordinate the payment of
         all or any part of the Guaranteed Indebtedness to the payment of any
         obligations, indebtedness or liabilities which may be due or become due
         to Bank or others; (vii) apply any deposit balance, fund, payment,
         collections through process of law or otherwise or other collateral of
         Borrower to the satisfaction and liquidation of the indebtedness or
         obligations of Borrower to Bank, if any, not guaranteed under this
         Guaranty pursuant to paragraph 4 herein; and (viii) apply any sums paid
         to Bank by Guarantor, Borrower or others to the Guaranteed Indebtedness
         in such order and manner as Bank, in its sole discretion, may
         determine.

                  (d) Should Bank seek to enforce the obligations of Guarantor
         hereunder by action in any court or otherwise, Guarantor waives any
         requirement, substantive or procedural, that (i) Bank first enforce any
         rights or remedies against Borrower or any other person or entity
         liable to Bank for all or any part of the Guaranteed Indebtedness,
         including without limitation that a judgment first be rendered against
         Borrower or any other person or entity, or that Borrower or any other
         person or entity should be joined in such cause, or (ii) Bank shall
         first enforce rights against any collateral which shall ever have been
         given to secure all or any part of the Guaranteed Indebtedness or this
         Guaranty.

UNLIMITED GUARANTY - PAGE 5
<PAGE>   6
         Such waiver shall be without prejudice to Bank's right, at its option,
         to proceed against Borrower or any other person or entity, whether by
         separate action or by joinder.

                  (e) In addition to any other waivers, agreements and covenants
         of Guarantor set forth herein, Guarantor hereby further waives and
         releases all claims, causes of action, defenses and offsets for any act
         or omission of Bank, its directors, officers, employees,
         representatives or agents in connection with Bank's administration of
         the Guaranteed Indebtedness, except for Bank's willful misconduct or
         gross negligence.

         8.       Obligations Not Impaired.

                  (a) Guarantor agrees that its obligations hereunder shall not
         be released, diminished, impaired, reduced or affected by the
         occurrence of any one or more of the following events: (i) the death,
         disability or lack of corporate power of Borrower, Guarantor or any
         other guarantor of all or any part of the Guaranteed Indebtedness, (ii)
         any receivership, insolvency, bankruptcy or other proceedings affecting
         Borrower, Guarantor or any other guarantor of all or any part of the
         Guaranteed Indebtedness, or any of their respective property; (iii) the
         partial or total release or discharge of Borrower or any other
         guarantor of all or any part of the Guaranteed Indebtedness, or any
         other person or entity from the performance of any obligation contained
         in any instrument or agreement evidencing, governing or securing all or
         any part of the Guaranteed Indebtedness, whether occurring by reason of
         law or otherwise; (iv) the taking or accepting of any collateral for
         all or any part of the Guaranteed Indebtedness or this Guaranty; (v)
         the taking or accepting of any other guaranty for all or any part of
         the Guaranteed Indebtedness; (vi) any failure by Bank to acquire,
         perfect or continue any lien or security interest on collateral
         securing all or any part of the Guaranteed Indebtedness or this
         Guaranty; (vii) the impairment of any collateral securing all or any
         part of the Guaranteed Indebtedness or this Guaranty; (viii) any
         failure by Bank to sell any collateral securing all or any part of the
         Guaranteed Indebtedness or this Guaranty in a commercially reasonable
         manner or as otherwise required by law; (ix) any invalidity or
         unenforceability of or defect or deficiency in any of the Loan
         Documents; or (x) any other circumstance which might otherwise
         constitute a defense available to, or discharge of, Borrower or any
         other guarantor of all or any part of the Guaranteed Indebtedness.

                  (b) This Guaranty shall continue to be effective or be
         reinstated, as the case may be, if at any time any payment of all or
         any part of the Guaranteed Indebtedness is rescinded or must otherwise
         be returned by Bank upon the insolvency, bankruptcy or reorganization
         of Borrower, Guarantor, any other guarantor of all or any part of the
         Guaranteed Indebtedness, or otherwise, all as though such payment had
         not been made.

UNLIMITED GUARANTY - PAGE 6
<PAGE>   7
                  (c) In the event Borrower is a corporation, joint stock
         association or partnership, or is hereafter incorporated, none of the
         following shall affect Guarantor's liability hereunder: (i) the
         unenforceability of all or any part of the Guaranteed Indebtedness
         against Borrower by reason of the fact that the Guaranteed Indebtedness
         exceeds the amount permitted by law; (ii) the act of creating all or
         any part of the Guaranteed Indebtedness is ultra vires; or (iii) the
         officers or partners creating all or any part of the Guaranteed
         Indebtedness acted in excess of their authority. Guarantor hereby
         acknowledges that withdrawal from, or termination of, any ownership
         interest in Borrower now or hereafter owned or held by Guarantor shall
         not alter, affect or in any way limit the obligations of Guarantor
         hereunder.

         9. Actions against Guarantor. In the event of a default in the payment
or performance of all or any part of the Guaranteed Indebtedness when such
Guaranteed Indebtedness becomes due, whether by its terms, by acceleration or
otherwise, Guarantor shall, without notice or demand, promptly pay the amount
due thereon to Bank, in lawful money of the United States, at Bank's address set
forth in subparagraph 1(a) above. One or more successive or concurrent actions
may be brought against Guarantor, either in the same action in which Borrower is
sued or in separate actions, as often as Bank deems advisable. The exercise by
Bank of any right or remedy under this Guaranty or under any other agreement or
instrument, at law, in equity or otherwise, shall not preclude concurrent or
subsequent exercise of any other right or remedy. The books and records of Bank
shall be admissible in evidence in any action or proceeding involving this
Guaranty and shall be prima facie evidence of the payments made on, and the
outstanding balance of, the Guaranteed Indebtedness.

         10. Payment by Guarantor. Whenever Guarantor pays any sum which is or
may become due under this Guaranty, written notice must be delivered to Bank
contemporaneously with such payment. Such notice shall be effective for purposes
of this paragraph when contemporaneously with such payment Bank receives such
notice either by: (a) personal delivery or delivery by nationally recognized
overnight service to the address and designated department of Bank identified in
subparagraph 1(a) above, or (b) United States mail, certified or registered,
return receipt requested, postage prepaid, addressed to Bank at the address
shown in subparagraph 1(a) above. In the absence of such notice to Bank by
Guarantor in compliance with the provisions hereof, any sum received by Bank on
account of the Guaranteed Indebtedness shall be conclusively deemed paid by
Borrower.

         11. Notice of Sale. In the event that Guarantor is entitled to receive
any notice under the Uniform Commercial Code, as it exists in the state
governing any such notice, of the sale or other disposition of any collateral
securing all or any part of the Guaranteed Indebtedness or this Guaranty,
reasonable notice shall be deemed given when such notice is deposited in the
United States mail, postage prepaid, at the address for Guarantor set forth in
subparagraph 1(d) above, ten (10) days prior to the date any public sale, or
after which any private sale, of any such

UNLIMITED GUARANTY - PAGE 7
<PAGE>   8
collateral is to be held; provided, however, that notice given in any other
reasonable manner or at any other reasonable time shall be sufficient.

         12. Waiver by Bank. No delay on the part of Bank in exercising any
right hereunder or failure to exercise the same shall operate as a waiver of
such right. In no event shall any waiver of the provisions of this Guaranty be
effective unless the same be in writing and signed by an officer of Bank, and
then only in the specific instance and for the purpose given.

         13. Successors and Assigns. This Guaranty is for the benefit of Bank,
its successors and assigns. This Guaranty is binding upon Guarantor and
Guarantor's heirs, executors, administrators, personal representatives and
successors, including without limitation any person or entity obligated by
operation of law upon the reorganization, merger, consolidation or other change
in the organizational structure of Guarantor.

         14. Costs and Expenses. Guarantor shall pay on demand by Bank all costs
and expenses, including without limitation, all reasonable attorneys' fees
incurred by Bank in connection with the preparation, administration, enforcement
and/or collection of this Guaranty. This covenant shall survive the payment of
the Guaranteed Indebtedness.

         15. Severability. If any provision of this Guaranty is held by a court
of competent jurisdiction to be illegal, invalid or unenforceable under present
or future laws, such provision shall be fully severable, shall not impair or
invalidate the remainder of this Guaranty and the effect thereof shall be
confined to the provision held to be illegal, invalid or unenforceable.

         16. No Obligation. Nothing contained herein shall be construed as an
obligation on the part of Bank to extend or continue to extend credit to
Borrower.

         17. Amendment. No modification or amendment of any provision of this
Guaranty, nor consent to any departure by Guarantor therefrom, shall be
effective unless the same shall be in writing and signed by an officer of Bank,
and then shall be effective only in the specific instance and for the purpose
for which given.

         18. Cumulative Rights. All rights and remedies of Bank hereunder are
cumulative of each other and of every other right or remedy which Bank may
otherwise have at law or in equity or under any instrument or agreement, and the
exercise of one or more of such rights or remedies shall not prejudice or impair
the concurrent or subsequent exercise of any other rights or remedies.

         19. GOVERNING LAW. THIS GUARANTY SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS AND APPLICABLE FEDERAL LAWS.

UNLIMITED GUARANTY - PAGE 8
<PAGE>   9
         20. Venue. This Guaranty has been entered into in the county in Texas
where Bank's address for notice purposes is located, and it shall be performable
for all purposes in such county. Courts within the State of Texas shall have
jurisdiction over any and all disputes arising under or pertaining to this
Guaranty and venue for any such disputes shall be in the county or judicial
district where the Bank's address for notice purposes is located.

         21. Compliance with Applicable Usury Laws. Notwithstanding any other
provision of this Guaranty or of any instrument or agreement evidencing,
governing or securing all or any part of the Guaranteed Indebtedness, Guarantor
and Bank by its acceptance hereof agree that Guarantor shall never be required
or obligated to pay interest in excess of the maximum nonusurious interest rate
as may be authorized by applicable law for the written contracts which
constitute the Guaranteed Indebtedness. It is the intention of Guarantor and
Bank to conform strictly to the applicable laws which limit interest rates, and
any of the aforesaid contracts for interest, if and to the extent payable by
Guarantor, shall be held to be subject to reduction to the maximum nonusurious
interest rate allowed under said law.

         22. Descriptive Headings. The headings in this Guaranty are for
convenience only and shall not define or limit the provisions hereof.

         23. Gender. Within this Guaranty, words of any gender shall be held and
construed to include the other gender.

         24. Entire Agreement. This Guaranty contains the entire agreement
between Guarantor and Bank regarding the subject matter hereof and supersedes
all prior written and oral agreements and understandings, if any, regarding
same; provided, however, this Guaranty is in addition to and does not replace,
cancel, modify or affect any other guaranty of Guarantor now or hereafter held
by Bank that relates to Borrower or any other person or entity.

UNLIMITED GUARANTY - PAGE 9
<PAGE>   10
         EXECUTED as of the date first above written.

                                                   GUARANTOR:

                                                   TBM HOLDINGS, INC.

                                                        /s/ William A. Schwartz
                                                    By:________________________

                                                         President
                                                    Its:_______________________

UNLIMITED GUARANTY - PAGE 10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00003-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00003-of-00352.parquet"}]]