Document:

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                                                                     Exhibit 4.8

                                PLEDGE AGREEMENT

     THIS PLEDGE AGREEMENT (this "Agreement"), is entered into as of September
9, 2004, by each of the parties listed on the signature pages hereof and those
additional entities that hereafter become parties hereto by executing the form
of Supplement attached hereto as Annex 1, as pledgors (collectively, the
"Pledgors", and each, a "Pledgor") and THE BANK OF NEW YORK TRUST COMPANY, N.A.,
in its capacity as Trustee under the Indenture (as defined below) (the
"Trustee").

                                   WITNESSETH:

          WHEREAS, pursuant to (a) that certain Indenture dated as of the date
hereof (as amended, restated, supplemented or otherwise modified from time to
time, the "Indenture"), by and among Securus Technologies, Inc., a Delaware
corporation, as issuer (the "Company"), the Subsidiaries of the Company party
thereto as guarantors (the "Guarantors") and the Trustee and (b) the Purchase
Agreement dated as of August 18, 2004 (the "Purchase Agreement"), among the
Company, the Guarantors, Credit Suisse First Boston LLC and Morgan Stanley & Co.
Incorporated (the "Initial Purchasers"), the Company is issuing $154,000,000
aggregate principal amount of its Second-Priority Senior Secured Notes Due 2011
(the "Notes" and the holders thereof, "Noteholders") which will be guaranteed on
a senior secured basis by the Guarantors;

          WHEREAS, in order to induce the Trustee to enter into the Indenture
and to induce the Initial Purchasers to purchase the Notes and in order to
secure the prompt and complete payment, observance and performance of, among
other things, (a) the obligations of the Pledgors that are Guarantors under the
Indenture and (b) all obligations of the Company under the Indenture and (items
(a) and (b) being hereinafter referred to as the "Secured Obligations"), each
Pledgor has agreed to pledge to the Trustee, for the benefit of the Noteholders,
all of its right, title and interest in and to all of the Equity Interests owned
by such Pledgor, regardless of class or designation (collectively, including,
without limitation, the Additional Pledged Interests (defined below), the
"Pledged Interests"), whether now owned or hereafter acquired (i) in each of the
business organizations listed on Schedule 1 attached hereto (collectively,
together with any additional Subsidiaries of any Pledgor hereafter acquired or
formed which shares, interests or units are pledged pursuant to this Agreement,
the "Pledged Companies") and (ii) each additional Subsidiary of such Pledgor
hereafter acquired or formed which shares, interests or units thereof are
required pursuant to the Indenture to be pledged to the Trustee (the "Additional
Pledged Interests");

          WHEREAS the Company, the Guarantors, the Trustee and ING Capital LLC,
as Intercreditor Agent, among others, have entered into an Intercreditor
Agreement, dated as of September 9, 2004 (as amended, restated, supplemented or
otherwise modified form time to time, the "Intercreditor Agreement"), pursuant
to which the lien upon and security interest in the Pledged Collateral (as
defined below) granted by this Agreement are and shall be subordinated in all
respects to the lien upon and security interest in the Pledged Collateral (as
defined below) granted pursuant to, and subject to
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the terms and conditions of, the Senior Lender Documents (as defined in the
Intercreditor Agreement);

          WHEREAS, each Pledgor (other than the Company) is a direct or indirect
Subsidiary of the Company, and each Pledgor has determined that its execution,
delivery and performance of this Agreement directly or indirectly benefits, and
is within the business purposes and in the best interests of, such Pledgor; and

          WHEREAS each Pledgor has duly authorized the execution, delivery and
performance of this Agreement.

     NOW, THEREFORE, for and in consideration of the foregoing and other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

     1. Warranty.  Each Pledgor hereby represents and warrants to the Trustee
and the Initial Purchasers that:

          (a) except for the security interest created hereby, such Pledgor is
and will at all times be the sole holder of record and the legal and beneficial
owner, free and clear of all Liens other than Permitted Liens (as defined in the
Indenture), of the Pledged Interests indicated on Schedule 1 as being owned by
such Pledgor and, when acquired by such Pledgor, the Additional Pledged
Interests;

          (b) all of the Pledged Interests are duly authorized, validly issued,
fully paid and nonassessable and the Pledged Interests constitute or will
constitute the percentage of the issued and outstanding Equity Interests of the
Pledged Companies of such Pledgor identified on Schedule 1 hereto as
supplemented or modified by any Pledge Agreement Addendum (as defined below) or
any Supplement (as defined below);

          (c) such Pledgor has the right and requisite authority to pledge,
assign, transfer, deliver, deposit and set over the Pledged Collateral (as
defined below) pledged by such Pledgor to the Trustee as provided herein;

          (d) all actions necessary or desirable to perfect, establish the
perfection of, or otherwise protect, the Trustee's Liens in the Pledged
Collateral, and the proceeds thereof, have been duly taken (i) upon the
execution and delivery of this Agreement, (ii) upon the taking of possession by
the Trustee or any bailee thereof, including under the provisions of the
Intercreditor Agreement or otherwise, of any certificates constituting the
Pledged Interests (including any Additional Pledged Interests), to the extent
such Pledged Interests are represented by certificates, together with undated
powers endorsed in blank by the applicable Pledgor, and (iii) upon the filing of
Uniform Commercial Code financing statements in the jurisdiction of formation of
each Pledgor with respect to the Pledged Interests (including any Additional
Pledged Interests) of such Pledgor, and the Trustee's Liens in the Pledged
Collateral will not be subject to any prior Lien other than Permitted Liens; and

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          (e) no consent, approval, authorization or other order or other action
by, and no notice to or filing with, any Governmental Authority or any other
Person is required (i) for the pledge and grant of a lien by such Pledgor of the
Pledged Collateral pursuant to this Agreement or for the execution, delivery or
performance of this Agreement by such Pledgor, or (ii) for the exercise by the
Trustee of the voting or other rights provided for in this Agreement or the
remedies in respect of the Pledged Collateral pursuant to this Agreement, except
as may be required in connection with such disposition by laws affecting the
offering and sale of securities generally or as may be required by the
Intercreditor Agreement.

The representations and warranties set forth in this Section 1 shall survive the
execution and delivery of this Agreement.

     2. Security Interest.  As security for the full and prompt payment and
performance of the Secured Obligations, each Pledgor hereby unconditionally
pledges, transfers, conveys, grants and assigns to the Trustee, for the benefit
of the Noteholders, a continuing security interest in and security title to all
of the following property now owned or at any time hereafter acquired by such
Pledgor or in which such Pledgor now has, or may acquire in the future, any
right, title or interest thereto (collectively, the "Pledged Collateral"):

          (a) the Pledged Interests (including the Additional Pledged Interests)
and all substitutions therefor and replacements thereof, all proceeds thereof
and all rights relating thereto, including, without limitation, any certificates
representing the Pledged Interests (including the Additional Pledged Interests),
subject to the Intercreditor Agreement, (i) the right to request, after the
occurrence and during the continuation of an Event of Default, that the Pledged
Interests (including the Additional Pledged Interests) be registered in the name
of the Trustee or any of its nominees, (ii) the right to receive any
certificates representing any of the Pledged Interests (including any
certificates representing any of the Additional Pledged Interests) and (iii) the
right to require that same be delivered to the Trustee together with undated
powers or assignments of investment securities with respect thereto, duly
endorsed in blank by the applicable Pledgor, all warrants, options, share
appreciation rights and other rights, contractual or otherwise, in respect
thereof and of all dividends, distributions of income, profits, surplus or other
compensation by way of income or liquidating distributions, in cash or in kind,
cash, instruments and other property from time to time received, receivable or
otherwise distributed in respect of or in addition to, in substitution of, on
account of or in exchange for any or all of the Pledged Interests (including the
Additional Pledged Interests), whether now owned or hereafter acquired by such
Pledgor; provided, however, that the Pledged Interests shall not include more
than 65% of the issued and outstanding voting Equity Interests of any Subsidiary
that is not a U.S. Subsidiary or any U.S. Subsidiary that is a limited liability
company or limited partnership which has no other assets other than Equity
Interests of any Subsidiary that is not a U.S. Subsidiary; provided, further,
that (x) shares of capital stock and other Equity Interests will constitute
Pledged Interests only to the extent that such capital stock and other Equity
Interests can secure the Notes without Rule 3-10 or Rule 3-16 of Regulation S-X
under the Securities Act ("Rule 3-10"

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and "Rule 3-16," respectively) (or any other law, rule or regulation) requiring
separate financial statements of such Subsidiary to be filed with the SEC (or
any other governmental regulatory agency); (y) in the event that either Rule
3-10 or Rule 3-16 requires or is amended, modified or interpreted by the SEC to
require (or is replaced with another rule or regulation, or any other law, rule
or regulation is adopted, which would require) the filing with the SEC (or any
other governmental regulatory agency) of separate financial statements of any
Subsidiary due to the fact that such Subsidiary's capital stock or other Equity
Interests constitute Pledged Interests, then such capital stock or other Equity
Interests shall automatically be deemed not to be Pledged Interests, but only to
the extent necessary to not be subject to such requirement; and (z) in the event
that either Rule 3-10 or Rule 3-16 is amended, modified or interpreted by the
SEC to permit (or is replaced with another rule or regulation, or any other law,
rule or regulation is adopted, which would permit) such capital stock or other
Equity Interests to constitute Pledged Interests without the filing with the SEC
(or any other governmental regulatory agency) of separate financial statements
of such Subsidiary, then such capital stock and other Equity Interests shall
automatically be deemed to be Pledged Interests but only to the extent necessary
to not be subject to any such financial statement requirement;

          (b) all of such Pledgor's rights, powers and remedies under the
limited liability company operating agreements of the Pledged Companies that are
limited liability companies (collectively, the "Operating Agreements") and under
the partnership agreements of the Pledged Companies that are general or limited
partnerships (collectively, the "Partnership Agreements"); and

          (c) to the extent not otherwise included, all proceeds of any and all
of the foregoing. For purposes of this Agreement, the term "proceeds" includes
whatever is receivable or received when Pledged Collateral or proceeds are sold,
exchanged, collected or otherwise disposed of, whether such disposition is
voluntary or involuntary, and includes, without limitation, proceeds of any
indemnity or guaranty payable to the Pledgors or the Trustee from time to time
with respect to any of the Pledged Collateral.

Each Pledgor has delivered to and deposited with ING Capital LLC (i) as
administrative agent (the "Administrative Agent") under the Credit Agreement (as
further amended, restated, refinanced, replaced, supplemented or otherwise
modified from time to time, the "Credit Agreement") dated as of the date hereof,
by and among the Company, the Administrative Agent, the Guarantors and the
various financial institutions party thereto, and (ii) as bailee of the Trustee
on behalf of the Noteholders under the Intercreditor Agreement (or will deliver
and deposit (in any event within five (5) Business Days of such Pledgor's
receipt thereof) with the Administrative Agent or the Trustee, as the case may
be, in accordance with Section 4 hereof) all certificates representing the
Pledged Interests owned by such Pledgor to the extent such Pledged Interests are
represented by certificates, and undated powers endorsed in blank with respect
to such certificates. In addition, each Pledgor hereby authorizes the filing of
appropriate Uniform Commercial Code financing statements describing the Pledged
Collateral (including any Additional Pledged Interests) in order to perfect the
Trustee's security interest therein. It is the intention of the parties hereto
that record and beneficial ownership of the Pledged

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Collateral, including, without limitation, all voting, consensual and dividend
rights, shall remain in the applicable Pledgor until the occurrence of an Event
of Default and until the Administrative Agent or the Trustee, as the case may be
in accordance with the Intercreditor Agreement, shall notify the applicable
Pledgor of the Administrative Agent's or Trustee's, as the case may be, exercise
of voting and consensual rights to the Pledged Collateral pursuant to Section 11
hereof.

     3. Operating Agreements and Partnership Agreements.

          (a) Anything herein to the contrary notwithstanding, each Pledgor
shall, for so long as it shall remain a member under any Operating Agreement or
a partner under any Partnership Agreement, remain liable under such Operating
Agreement or Partnership Agreement, as the case may be, to observe and perform
all of the conditions and obligations to be observed and performed by it
thereunder, all in accordance with and pursuant to the terms and provisions
thereof.

          (b) For Pledged Collateral where the applicable Operating Agreement or
Partnership Agreement provides that all limited liability company or partnership
interests, as applicable, issued thereunder shall be certificated, then the
applicable Pledgor or Pledgors shall not amend, supplement or otherwise modify
(or consent to any such amendment, supplement or modification of) the terms of
such Operating Agreement or such Partnership Agreement, as the case may be, so
as to provide for the issuance of uncertificated limited liability company or
partnership interests, as applicable.

          (c) For Pledged Collateral where the applicable Operating Agreement or
Partnership Agreement, as the case may be, does not provide that all limited
liability company or partnership interests, as applicable, issued thereunder
shall be certificated, each Pledgor, as applicable, hereby represents and
warrants to the Trustee that such Pledged Collateral owned by it (i) is not
dealt in or traded on securities exchanges or in securities markets, (ii) does
not constitute investment company securities, and (iii) is not held by such
Pledgor in a securities account. In addition, none of the articles of
organization, the Operating Agreements, the Partnership Agreements and the other
agreements governing any of the uncertificated Pledged Collateral provide that
such Pledged Collateral may be certificated or that such Pledged Collateral are
securities governed by Article 8 of the UCC as in effect in any relevant
jurisdiction.

     4. Additional Pledged Interests.  In the event that, during the term of
this Agreement,

          (a) any Pledgor shall receive or become entitled to receive any
Additional Pledged Interests (including, without limitation, any Additional
Pledged Interests representing a dividend or a distribution in connection with
any reclassification, increase or reduction of capital, merger, consolidation,
sale of assets, combination or other reorganization), or any promissory note or
other instrument by virtue of such Pledgor having been an owner of any of the
Pledged Collateral, or any other assets (including, without limitation, any
options, warrants, subscriptions or other rights,

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whether as an addition to, in substitution for, or in exchange for any of the
Pledged Interests or otherwise) constituting Pledged Collateral, each Pledgor
agrees to promptly (and in any event within five (5) Business Days of such
Pledgor's receipt thereof) undertake the following actions: (i) to deliver to
the Administrative Agent, as bailee for the Trustee under the Intercreditor
Agreement, or, if following a Discharge of Senior Lender Claims (as defined in
the Intercreditor Agreement), to the Trustee, any such Additional Pledged
Interests or other Pledged Collateral represented by a certificate or other
instrument, or any such promissory note or other instrument received, such
certificate, promissory note or other instrument, together with undated powers
endorsed in blank by such Pledgor, (ii) with respect to any such Additional
Pledged Interests or other Pledged Collateral which is not represented by a
certificate or other instrument, to file Uniform Commercial Code financing
statements to the extent required in order to perfect the Lien of the Trustee in
such Additional Pledged Interests and other Pledged Collateral granted hereunder
and (iii) in the case of both clause (i) and clause (ii) to deliver to the
Trustee a duly executed Pledge Agreement Addendum in substantially the form of
Annex 1 hereto (a "Pledge Agreement Addendum") identifying the Additional
Pledged Interests, promissory note or other instrument or other Pledged
Collateral which are pledged by such Pledgor pursuant to this Agreement. Upon
the execution and delivery of any Pledge Agreement Addendum, any Additional
Pledged Interests, promissory note or other instrument and other Pledged
Collateral identified thereon shall thereafter constitute Pledged Collateral to
be held by the Administrative Agent or the Trustee, as the case may be, pursuant
to the terms of this Agreement, and

          (b) any distribution of any Equity Interests or other securities of
any Person, regardless of class or designation, or any warrants, options,
purchase rights, conversion or exchange rights, voting rights, calls or claims
of any character with respect to any of the foregoing, shall be made on or in
respect of the Pledged Collateral or any property shall be distributed upon or
with respect to the Pledged Collateral pursuant to the recapitalization or
reclassification of the Equity Interests or other securities of the issuer
thereof or pursuant to the reorganization thereof, the property so distributed
shall be delivered promptly (and in any event within five (5) Business Days of
the applicable Pledgor's receipt thereof) by each applicable Pledgor to (i) the
Administrative Agent, as bailee of the Trustee on behalf of the Noteholders
under the provisions of the Intercreditor Agreement, or (ii) if following a
Discharge of Senior Lender Claims (as defined in the Intercreditor Agreement),
the Trustee, to be held by it as additional collateral security for the Secured
Obligations. All sums of money and property so paid or distributed in respect of
the Pledged Collateral which are received by any Pledgor shall, until paid or
delivered to the Administrative Agent or the Trustee, as the case may be, be
held by the Pledgors in trust for the benefit of the Trustee segregated from
such Pledgor's other property, and such Pledgor shall deliver such money or
property promptly to the Administrative Agent or the Trustee, as the case may
be, in the exact form received, together with the authorization to file any
necessary Uniform Commercial Code financing statements or any necessary
endorsement or appropriate stock or other powers or assignments duly endorsed in
blank by such Pledgor.

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     5. Covenants.  Each Pledgor hereby covenants and agrees that:

          (a) such Pledgor will not sell or otherwise dispose of any interest in
the Pledged Collateral or any funds or property held therein or constituting a
part thereof, except as permitted by the Indenture;

          (b) such Pledgor will not create or permit to exist any Lien upon or
with respect to the Pledged Collateral or any funds or property constituting a
part thereof, other than the Lien created hereunder in favor of the Trustee and
other Permitted Liens (as defined in the Indenture) and such Pledgor has and
will defend the title to the Pledged Collateral and the Liens of the Trustee in
the Pledged Collateral against the claim of any Person (other than the
Administrative Agent) and will maintain and preserve such Liens;

          (c) such Pledgor shall at its own expense, promptly deliver to the
Trustee a copy of each notice or other communication received by it in respect
of any of the Pledged Interests constituting Pledged Collateral hereunder;

          (d) such Pledgor shall not make or consent to any amendment or other
modification or waiver with respect to any such Pledged Interests, or enter into
any agreement or permit to exist any restriction with respect to any such
Pledged Interests other than pursuant hereto, except as permitted by the
Indenture;

          (e) such Pledgor shall not convey or encumber any of the Pledged
Collateral in any manner whatsoever except as provided in the Indenture nor take
any action which would (or fail to take any action, the result of which failure
would) in any manner impair the value of the Pledged Collateral or the priority
or enforceability of the security interest of the Trustee therein;

          (f) such Pledgor agrees that from time to time, at its own expense,
such Pledgor will promptly execute and deliver all further instruments and
documents, and take all further action, that may be necessary or that the
Trustee may reasonably request, in order to ensure to the Trustee and the
Noteholders the benefits of the Liens in and to the Pledged Collateral intended
to be created by this Agreement, or to enable the Trustee to exercise and
enforce its rights and remedies hereunder with respect to any of the Pledged
Collateral;

          (g) such Pledgor authorizes the Trustee to file, transmit, or
communicate, as applicable, Uniform Commercial Code financing statements,
in-lieu financing statements and amendments in order to perfect the Trustee's
security interest in the Pledged Collateral without such Pledgor's signature to
the extent permitted by Applicable Law. A photocopy or other reproduction of
this Agreement or any financing statement covering the Pledged Collateral or any
part thereof shall be sufficient as a financing statement where permitted by
Applicable Law. Each Pledgor also hereby ratifies its authorization for the
Trustee to have filed in any jurisdiction any financing statements, in-lieu of
financing statements or amendments thereto if filed prior to the date hereof;

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          (h) such Pledgor acknowledges that it is not authorized to file any
financing statement or amendment or termination statement with respect to any
financing statement filed in connection with this Agreement without the prior
written consent of the Trustee, subject to such Pledgor's rights under Section
9-509(d)(2) of the UCC; and

          (i) such Pledgor will cooperate with the Trustee, at such Pledgor's
expense, in obtaining all necessary approvals and making all necessary filings
under federal (domestic or foreign), state, provincial, local or foreign law in
connection with such Liens or any sale or transfer of the Pledged Collateral.

     6. Event of Default.  Upon the occurrence and during the continuation of an
Event of Default, the Trustee, subject to the provisions of the Intercreditor
Agreement, may sell or otherwise dispose of any of the Pledged Interests at one
or more public or private sales or make other commercially reasonable
disposition of the Pledged Interests or any portion thereof after ten (10) days'
notice to the applicable Pledgor, and the Trustee or any Noteholder may purchase
the Pledged Interests or any portion thereof at any public sale. Each Pledgor
hereby acknowledges and agrees that such notice, when given, shall constitute a
reasonable "authenticated notification of disposition" within the meaning of
Section 9-611 of the Uniform Commercial Code, as in effect from time to time in
any applicable jurisdiction. The proceeds of the public or private sale or other
disposition shall, subject to the provisions of the Intercreditor Agreement,
first be applied to the costs of the Trustee incurred in connection with the
sale, expressly including, without limitation, any costs under Section 9 hereof,
and then as provided in the Indenture. In the event the proceeds of such sale or
other disposition of the Pledged Interests are insufficient to satisfy the
Secured Obligations in full, each Pledgor shall remain jointly and severally
liable for any such deficiency.

     7. Additional Rights of the Trustee.  In addition to its rights, powers,
protections, immunities, indemnities and privileges under this Agreement and the
Indenture (which are expressly incorporated by reference herein), the Trustee
shall have all the rights, powers and privileges of a secured party under the
UCC.

     8. Return of Pledged Interests to the Pledgor.  Upon payment in full in
cash, or other satisfaction to the satisfaction of the Trustee, of the Secured
Obligations, this Agreement and the Trustee's Liens hereunder shall terminate,
and, if applicable, the Trustee shall promptly return the remaining certificated
Pledged Interests and all rights received by the Trustee as a result of its
possessory interest in such Pledged Interests to the appropriate Pledgors and
shall promptly deliver such termination statements and other release documents
as may be requested by the applicable Pledgor to evidence the termination of the
Trustee's Liens in such Pledged Interests hereunder.

     9. Disposition of Pledged Collateral by Trustee.  None of the Pledged
Interests existing as of the date of this Agreement is, and none of the
Additional Pledged Interests hereafter acquired on the date of acquisition
thereof will be, registered or qualified under the various Federal or state
securities laws of the United States and disposition thereof after an Event of
Default may be restricted to one or more private

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(instead of public) sales in view of the lack of such registration or
qualification. Each Pledgor understands that in connection with such
disposition, the Trustee may approach only a restricted number of potential
purchasers and further understands that a sale under such circumstances may
yield a lower price for the Pledged Interests than if the Pledged Interests were
registered and qualified pursuant to Federal and state securities laws and sold
on the open market. Each Pledgor, therefore, agrees that: (a) if the Trustee
shall, pursuant to the terms of this Agreement and the Intercreditor Agreement,
sell or cause the Pledged Interests or any portion thereof to be sold at a
private sale, the Trustee shall have the right to rely upon the advice and
opinion of any nationally recognized brokerage or investment firm (but shall not
be obligated to seek such advice and the failure to do so shall not be
considered in determining the commercial reasonableness of such action) as to
the best manner in which to offer the Pledged Interest for sale and as to the
best price reasonably obtainable at the private sale thereof; and (b) such
reliance shall be conclusive evidence that the Trustee has handled such
disposition in a commercially reasonable manner.

     10. Pledgors' Obligations Absolute.  The obligations of the Pledgors under
this Agreement shall be direct and immediate and not conditional or contingent
upon the pursuit of any remedies against any other Person, nor against other
security or Liens available to the Trustee or any Noteholder. Each Pledgor
hereby waives any right to require that an action be brought against any other
Person or to require that resort be had to any security or to any balance of any
deposit account or credit on the books of the Trustee in favor of any other
Person prior to the exercise of remedies hereunder, or to require action
hereunder prior to resort by the Trustee to any other security or collateral for
the Secured Obligations.

     11. Voting Rights.

          (a) Unless an Event of Default under the Indenture shall have occurred
and be continuing, each Pledgor shall be entitled to exercise any and all voting
and other consensual rights pertaining to the Pledged Interests owned by it,
subject to Section 11(b). Upon the occurrence and during the continuation of an
Event of Default under the Indenture, subject to the provisions of the
Intercreditor Agreement, (i) the Trustee may, at its option, and with ten (10)
days' prior notice to any Pledgor, and in addition to all rights and remedies
available to the Trustee under any other agreement, at law, in equity, or
otherwise, exercise all voting rights, and all other ownership or consensual
rights, in respect of the Pledged Collateral owned by such Pledgor, but under no
circumstances is the Trustee obligated by the terms of this Agreement to
exercise such rights, and (ii) each Pledgor hereby appoints the Trustee, such
Pledgor's true and lawful attorney-in-fact and IRREVOCABLE PROXY to vote the
Pledged Collateral owned by such Pledgor in any manner the Trustee deems
advisable for or against all matters submitted or which may be submitted to a
vote of shareholders, partners or members, as the case may be. The
power-of-attorney granted hereby is coupled with an interest and shall be
irrevocable.

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          (b) For so long as any Pledgor shall have the right to vote the
Pledged Collateral owned by it, such Pledgor covenants and agrees that it will
not, without the prior written consent of the Trustee, vote or take any
consensual action with respect to such Pledged Collateral which would materially
adversely affect the rights of the Trustee and the Noteholders or violate the
Indenture, this Agreement or any other Noteholder Document (as defined in the
Intercreditor Agreement).

     12. Indemnity and Expenses.

          (a) Each Pledgor, jointly and severally, agrees to indemnify the
Trustee, the Initial Purchasers and the Noteholders from and against all claims,
lawsuits and liabilities (including reasonable attorneys' fees) growing out of
or resulting from this Agreement (including, without limitation, enforcement of
this Agreement) except claims, losses or liabilities resulting from the gross
negligence or willful misconduct of the party seeking indemnification as
determined by a final non-appealable order of a court of competent jurisdiction.
This provision shall survive the termination of this Agreement and the Indenture
and the repayment of the Secured Obligations.

          (b) The Pledgors shall, upon demand, pay to the Trustee, jointly and
severally, the amount of any and all expenses, including, without limitation,
the reasonable fees and expenses of its counsel incurred and the fees and
expenses of any experts and agents, which the Trustee may incur in connection
with (i) the administration of this Agreement, (ii) the custody, preservation,
use or operation of, or, upon an Event of Default, the sale of, collection from,
or other realization upon, any of the Pledged Collateral in accordance with this
Agreement, (iii) the exercise or enforcement of any of the rights of the Trustee
hereunder or (iv) the failure by any of the Pledgors to perform or observe any
of the provisions hereof.

     13. Merger, Amendments; Etc.  THIS WRITTEN AGREEMENT, TOGETHER WITH THE
OTHER NOTEHOLDER DOCUMENTS (AS DEFINED IN THE INTERCREDITOR AGREEMENT),
REPRESENTS 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. No waiver
of any provision of this Agreement, and no consent to any departure by any of
the Pledgors herefrom, shall in any event be effective unless the same shall be
in writing and signed by the Trustee, and then such waiver or consent shall be
effective only in the specific instance and for the specific purpose for which
given. No amendment of any provision of this Agreement shall be effective unless
the same shall be in writing and signed by the Trustee and each of the Pledgors
to which such amendment applies.

     14. Addresses for Notices.  All notices and other communications provided
for hereunder shall be given in the form and manner and delivered to the Trustee
at its address specified in the Indenture, and to any of the Pledgors at their
respective addresses

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specified in the Indenture, or, as to any party, at such other address as shall
be designated by such party in a written notice to each of the parties hereto.

     15. Continuing Security Interest: Assignments under Indenture.  This
Agreement shall create a continuing security interest in the Pledged Collateral
and shall (a) remain in full force and effect until the Secured Obligations have
been paid in full in cash or otherwise satisfied to the satisfaction of the
Trustee, (b) be binding upon each of the Pledgors, and their respective
successors and assigns, and (c) inure to the benefit of, and be enforceable by,
the Trustee, and its successors, transferees and assigns. Upon payment in full
in cash, or other satisfaction to the satisfaction of the Trustee, of the
Secured Obligations, the security interest granted hereby shall terminate and
all rights to the Pledged Collateral shall immediately revert to the Pledgors or
any other Person entitled thereto. At such time as the Secured Obligations have
been paid in full in cash or otherwise satisfied to the satisfaction of the
Trustee, the Trustee will promptly authorize the filing of appropriate
termination statements to terminate the security interest and promptly return
the remaining certificated Pledged Interests, if any, and all rights received by
the Trustee as a result of its possessory interest in such Pledged Interests to
the appropriate Pledgors. No transfer or renewal, extension, assignment or
termination of this Agreement or of the Indenture, or any other instrument or
document executed and delivered by the Company or any of the Pledgors to the
Trustee, nor the taking of further security, nor the retaking or re-delivery of
the Pledged Collateral to the Company and the Pledgors, or any of them, by the
Trustee, nor any other act of the Noteholders, or any of them, shall release any
of the Pledgors from any obligation under this Agreement, except a release or
discharge executed in writing by the Trustee with respect to such obligation or
payment of such obligation or upon payment in full in cash, or other
satisfaction to the satisfaction of the Trustee of the Secured Obligations. The
Trustee shall not by any act, delay, omission or otherwise, be deemed to have
waived any of its rights or remedies hereunder, unless such waiver is in writing
and signed by the Trustee and then only to the extent therein set forth. A
waiver by the Trustee of any right or remedy on any occasion shall not be
construed as a bar to the exercise of any such right or remedy which the Trustee
would otherwise have had on any other occasion. In the event of any sale of
Pledged Collateral permitted by Section 11.03 of the Indenture, or any other
permitted sale of Pledged Collateral, the Trustee will, promptly upon the
written request of the appropriate Pledgor, if applicable, return the relevant
certificated Pledged Interests to the appropriate Pledgor (and all rights
received by the Trustee as a result of its possessory interest in such Pledged
Interests) and execute and deliver to the relevant Pledgor termination
statements provided to the Trustee to terminate the security interest in such
Pledged Collateral.

     16. Governing Law.  This Agreement is intended to take effect as a sealed
instrument and shall be construed in accordance with and governed by the laws of
the State of New York, without regard to the conflict of laws principles
thereof, except to the extent that the validity or perfection of the security
interest hereunder, or remedies hereunder, in respect of any particular Pledged
Collateral are governed by the laws of a jurisdiction other than the State of
New York.

                                       11
<PAGE>
     17. New Subsidiaries.  Pursuant to, and except as otherwise provided in,
Section 4.20 of the Indenture, any new direct or indirect Subsidiary (whether by
acquisition, creation or designation) of the Company (if such new Subsidiary
owns Equity Interests in another Subsidiary) and any existing Subsidiary that
owns any Equity Interests in such new Subsidiary if such existing Subsidiary is
not currently a party hereto is required to enter into this Agreement by
executing and delivering in favor of the Trustee, an instrument in the form of
Annex 2 attached hereto (a "Supplement"). Upon the execution and delivery of the
Supplement by such Subsidiary, such Subsidiary shall become a Pledgor hereunder
with the same force and effect as if originally named as a Pledgor herein. The
execution and delivery of any instrument adding an additional Pledgor as a party
to this Agreement shall not require the consent of any other Pledgor hereunder.
The rights and obligations of each Pledgor hereunder shall remain in full force
and effect notwithstanding the addition of any new Pledgor hereunder.

     18. Trustee.  Each reference herein to any right granted to, benefit
conferred upon or power exercisable by the "Trustee" shall be a reference to
Trustee for the benefit of Noteholders, and each action taken or right exercised
hereunder shall be deemed to have been so taken or exercised by Trustee for the
benefit of the Noteholders.

     19. Miscellaneous.

          (a) This Agreement may be executed in any number of counterparts, each
of which shall be deemed to be an original, but all such separate counterparts
shall together constitute but one and the same instrument. In proving this
Agreement in any judicial proceedings, it shall not be necessary to produce or
account for more than one such counterpart signed by the party against whom such
enforcement is sought. Any signatures delivered by a party by facsimile
transmission or by e-mail transmission of an adobe file format document (also
known as a PDF file) shall be deemed an original signature hereto.

          (b) Any provision of this Agreement which is prohibited or
unenforceable shall be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof in that
jurisdiction or affecting the validity or enforceability of such provision in
any other jurisdiction.

          (c) Headings used in this Agreement are for convenience only and shall
not be used in connection with the interpretation of any provision hereof.

          (d) The pronouns used herein shall include, when appropriate, either
gender and both singular and plural, and the grammatical construction of
sentences shall conform thereto.

          (e) Notwithstanding anything herein to the contrary, (i) the liens and
security interests granted to the Trustee pursuant to this Agreement are
expressly subject and subordinate to the liens and security interests granted to
the Administrative Agent (and its permitted successors and assigns), for the
benefit of the credit parties, pursuant to

                                       12
<PAGE>
the Credit Agreement and the related security documents dated as of September 9,
2004 (as further amended, restated, refinanced, replaced, supplemented or
otherwise modified from time to time), by and among the Company, ING Capital
LLC, as agent, the lenders and the other credit parties party thereto and the
other parties party thereto and (ii) the exercise of any right or remedy by the
Trustee hereunder is subject to the limitations and provisions of the
Intercreditor Agreement. In the event of any conflict between the terms of the
Intercreditor Agreement and the terms of this Agreement, the terms of the
Intercreditor Agreement shall govern.

          (f) In connection with its appointment and acting hereunder, the
Trustee is entitled to all rights, privileges, protections, benefits and
immunities provided to it under the Indenture.

                [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

                                       13
<PAGE>
          IN WITNESS WHEREOF, the undersigned parties hereto have executed this
Agreement by and through their duly authorized officers, as of the day and year
first above written.

PLEDGORS:                               SECURUS TECHNOLOGIES, INC.,
                                        a Delaware corporation

                                        By: /s/ Lewis Schoenwetter
                                            ------------------------------------
                                        Name: Lewis Schoenwetter
                                        Title: Vice President

                                        T-NETIX, INC., a Delaware corporation

                                        By: /s/ Lewis Schoenwetter
                                            ------------------------------------
                                        Name: Lewis Schoenwetter
                                        Title: Vice President

                                        EVERCOM HOLDINGS, INC.,
                                        a Delaware corporation

                                        By: /s/ Lewis Schoenwetter
                                            ------------------------------------
                                        Name: Lewis Schoenwetter
                                        Title: Vice President

                                        EVERCOM, INC., a Delaware corporation

                                        By: /s/ Lewis Schoenwetter
                                            ------------------------------------
                                        Name: Lewis Schoenwetter
                                        Title: Vice President

TRUSTEE:                                THE BANK OF NEW YORK TRUST
                                        COMPANY, N.A., as Trustee

                                        By: /s/ George Bemister
                                            ------------------------------------
                                        Name: George Bemister
                                        Title: Assistant Vice President

PLEDGE AGREEMENT
<PAGE>

                                   SCHEDULE 1

                                PLEDGED COMPANIES

<TABLE>
<CAPTION>
                                      Number of     Class of   Percentage
                  Name of Pledged      Pledged      Pledged     of Class    Certificate
Name of Pledgor       Company       Shares/Units   Interests      Owned         Nos.
---------------   ---------------   ------------   ---------   ----------   -----------
<S>               <C>               <C>            <C>         <C>          <C>

</TABLE>

PLEDGE AGREEMENT ADDENDUM
<PAGE>
                           Annex 1 to Pledge Agreement

                            PLEDGE AGREEMENT ADDENDUM

     This Pledge Agreement Addendum, dated as of ____________, 20___, is
delivered pursuant to Section 4 of the Pledge Agreement referred to below. The
undersigned hereby agrees that this Pledge Agreement Addendum may be attached to
that certain Pledge Agreement, dated as of September 9, 2004 (as amended,
restated, supplemented or otherwise modified from time to time, the "Pledge
Agreement"; the terms defined therein and not otherwise defined herein being
used as therein defined), made by the undersigned, together with the other
Pledgors named therein, to The Bank of New York Trust Company, N.A., as Trustee,
and that the additional interests listed on this Pledge Agreement Addendum as
set forth below shall be and become part of the Pledged Interests pledged by the
undersigned to the Trustee in the Pledge Agreement and shall secure all Secured
Obligations and any pledged company set forth on this Pledge Agreement Addendum
as set forth below shall be and become a "Pledged Company" under the Pledge
Agreement, each with the same force and effect as if originally named therein.

     The undersigned hereby certifies that the representations and warranties
set forth in Section 1 of the Pledge Agreement of the undersigned are true and
correct as to the Pledged Collateral listed herein on and as of the date hereof.

                                        [___________________]

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

<TABLE>
<CAPTION>
                                      Number of     Class of   Percentage
                  Name of Pledged      Pledged      Pledged     of Class    Certificate
Name of Pledgor       Company       Shares/Units   Interests      Owned         Nos.
---------------   ---------------   ------------   ---------   ----------   -----------
<S>               <C>               <C>            <C>         <C>          <C>

</TABLE>
<PAGE>
                           Annex 2 to Pledge Agreement

                               Form of Supplement

     Supplement No. __ (this "Supplement") dated as of _______ to the Pledge
     Agreement dated as of September 9, 2004 (as amended, restated, supplemented
     or otherwise modified from time to time, the "Pledge Agreement") by each of
     the parties listed on the signature pages thereto and those additional
     entities that thereafter become parties thereto (each a "Pledgor" and
     collectively, (the "Pledgors") and THE BANK OF NEW YORK TRUST COMPANY,
     N.A., in its capacity as trustee under the Indenture (as defined below)
     (the "Trustee").

                                   WITNESSETH:

     WHEREAS, pursuant to (a) that certain Indenture dated as of the date hereof
(as amended, restated, supplemented or otherwise modified from time to time, the
"Indenture"), by and among Securus Technologies, Inc., a Delaware corporation,
as issuer (the "Company"), the Subsidiaries of the Company party thereto as
guarantors (the "Guarantors") and the Trustee and (b) the Purchase Agreement
dated as of August 18, 2004 (the "Purchase Agreement"), among the Company, the
Guarantors, Credit Suisse First Boston LLC and Morgan Stanley & Co. Incorporated
(the "Initial Purchasers"), the Company is issuing $154,000,000 aggregate
principal amount of its Second-Priority Senior Secured Notes Due 2011 (the
"Notes") which will be guaranteed on a senior secured basis by the Guarantors;

     WHEREAS, capitalized terms used herein and not otherwise defined herein
shall have the meanings assigned to such terms in the Pledge Agreement, and if
not defined therein, in the Indenture; and

     WHEREAS, the Pledgors have entered into the Pledge Agreement in order to
induce the Initial Purchasers to purchase the Notes and to induce the Trustee to
enter into the Indenture and continue to perform its duties thereunder; and

     WHEREAS, pursuant to, and except as otherwise provided in, Section 4.20 of
the Indenture, new direct or indirect Subsidiaries of the Company (if such new
Subsidiary owns Equity Interests in another Subsidiary) and any existing
Subsidiary that owns any Equity Interests in such new Subsidiary if such
existing Subsidiary is not currently a party to the Pledge Agreement), must
execute and deliver certain Security Documents, including the Pledge Agreement
to provide to the Trustee a supplement to the Pledge Agreement, and such other
security documents requested by the Trustee in its discretion and the execution
of the Pledge Agreement by the undersigned new Pledgor or Pledgors
(collectively, the "New Pledgor") may be accomplished by the execution of this
Supplement in favor of the Trustee for the benefit of the Noteholders;

                                Annex 2 - Page 1
<PAGE>
     NOW, THEREFORE, for and in consideration of the foregoing and other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the New Pledgor hereby agrees as follows:

     SECTION 1. In accordance with Section 17 of the Pledge Agreement, the New
Pledgor, by its signature below, becomes a 'Pledgor' under the Pledge Agreement
with the same force and effect as if originally named therein as a 'Pledgor' and
the New Pledgor hereby (a) agrees to all of the terms and provisions of the
Pledge Agreement applicable to it as a 'Pledgor' thereunder and (b) represents
and warrants that the representations and warranties made by it as a 'Pledgor'
thereunder are true and correct on and as of the date hereof. In furtherance of
the foregoing, the New Pledgor, as security for the full and prompt payment and
performance of the Secured Obligations now or hereafter existing and all
obligations of such New Pledgor pursuant to this Agreement, the Indenture and
the other Noteholder Documents (as defined in the Intercreditor Agreement) to
which such New Pledgor is a party, does hereby grant and assign to the Trustee,
for the benefit of the Noteholders, a continuing security interest in and
security title to all Equity Interests or other securities of such Pledgor,
regardless of class or designation, and all warrants, options, purchase rights,
conversion or exchange rights, voting rights, calls or claims of any character
with respect thereto (hereafter collectively referred to as "Pledged Interests")
of any Subsidiary of the New Pledgor listed on Exhibit A attached hereto and any
Pledged Collateral of any Subsidiary of the New Pledgor obtained in the future.
Concurrently with the delivery hereof, the New Pledgor shall, subject to the
provisions of the Intercreditor Agreement, deliver to and deposit with the
Trustee all certificates representing any of the Pledged Collateral, to the
extent such Pledged Interests are represented by certificates, together with
undated powers endorsed in blank by the New Pledgor, and, to the extent any of
the Pledged Collateral shall not be represented by certificates, the New Pledgor
hereby authorizes the Trustee to file Uniform Commercial Code financing
statements in order to perfect the security interest granted to the Trustee
under the Pledge Agreement in such Pledged Collateral. Exhibit A, "Pledged
Interests," attached hereto supplements Schedule 1 to the Pledge Agreement and
shall be deemed a part thereof for all purposes of the Pledge Agreement. Each
reference to a 'Pledgor' in the Pledge Agreement shall be deemed to include the
New Pledgor. The Pledge Agreement is incorporated herein by reference.

     SECTION 2. The New Pledgor represents and warrants to the Trustee and the
Noteholders that this Supplement has been duly executed and delivered by the New
Pledgor and constitutes its legal, valid and binding obligation, enforceable
against it in accordance with its terms, except as enforceability thereof may be
limited by bankruptcy, insolvency, reorganization, fraudulent transfer,
moratorium or other similar laws affecting creditors' rights generally and
general principles of equity (regardless of whether such enforceability is
considered in a proceeding at law or in equity).

     SECTION 3. This Supplement may be executed in multiple counterparts, each
of which shall be deemed to be an original, but all such separate counterparts
shall together constitute but one and the same instrument. Delivery of a
counterpart hereof by facsimile transmission or by e-mail transmission shall be
as effective as delivery of a manually executed counterpart hereof.

     SECTION 4. Except as expressly supplemented hereby, the Pledge Agreement
shall remain in full force and effect.
<PAGE>
     SECTION 5. This Supplement is intended to take effect as a sealed
instrument and shall be construed in accordance with and governed by the laws of
the State of New York, without regard to the conflict of laws principles
thereof, except to the extent that the validity or perfection of the security
interest hereunder, or remedies hereunder, in respect of any particular
Collateral are governed by the laws of a jurisdiction other than the State of
New York.

            [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK.]
<PAGE>
     IN WITNESS WHEREOF, the New Pledgor has duly executed this Supplement to
the Pledge Agreement as of the day and year first above written.

NEW PLEDGOR:                            [Name of New Pledgor]

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

                                Annex 2 - Page 4
<PAGE>
                                    EXHIBIT A

                          ADDITIONAL PLEDGED INTERESTS

<TABLE>
<CAPTION>
                                      Number of     Class of   Percentage
                  Name of Pledged      Pledged      Pledged     of Class    Certificate
Name of Pledgor       Company       Shares/Units   Interests      Owned         Nos.
---------------   ---------------   ------------   ---------   ----------   -----------
<S>               <C>               <C>            <C>         <C>          <C>

</TABLE><PAGE>

                                                                     EXHIBIT 4.9
                                   $30,000,000

                                CREDIT AGREEMENT

                                      among

                  SECURUS TECHNOLOGIES, INC., as the Borrower,

        The Subsidiaries of the Borrower party hereto as the Guarantors,

             The financial institutions party hereto as the Lenders,

                     ING CAPITAL LLC, as the Issuing Lender,

                                       and

                  ING CAPITAL LLC, as the Administrative Agent

                                September 9, 2004

<PAGE>

                                      INDEX

<TABLE>
<CAPTION>
                                                                                          PAGE
                                                                                          ----
<S>                                                                                       <C>
ARTICLE 1.         DEFINITIONS, ACCOUNTING PRINCIPLES AND OTHER INTERPRETIVE MATTERS....    1
      Section  1.1      Definitions.....................................................    1
      Section  1.2      Accounting Principles...........................................   22
      Section  1.3      Other Interpretive Matters......................................   22
ARTICLE 2.         THE LOANS AND THE LETTERS OF CREDIT..................................   23
      Section  2.1      Extension of Credit.............................................   23
      Section  2.2      Manner of Borrowing and Disbursement of Loans...................   24
      Section  2.3      Interest........................................................   27
      Section  2.4      Fees............................................................   27
      Section  2.5      Prepayment/Reduction of Commitment..............................   28
      Section  2.6      Repayment.......................................................   29
      Section  2.7      Notes; Loan Accounts............................................   30
      Section  2.8      Manner of Payment...............................................   30
      Section  2.9      Reimbursement...................................................   32
      Section 2.10      Pro Rata Treatment..............................................   33
      Section 2.11      Application of Payments.........................................   33
      Section 2.12      Use of Proceeds.................................................   34
      Section 2.13      All Obligations to Constitute One Obligation....................   34
      Section 2.14      Maximum Rate of Interest........................................   34
      Section 2.15      Letters of Credit...............................................   35
      Section 2.16      Hedge Agreements................................................   38
ARTICLE 3.         GUARANTY.............................................................   38
      Section  3.1      Guaranty........................................................   38
      Section  3.2      Special Provisions Applicable to Subsidiary Guarantors..........   42
ARTICLE 4.         CONDITIONS PRECEDENT.................................................   42
      Section  4.1      Conditions Precedent to Initial Advance.........................   42
      Section  4.2      Conditions Precedent to Each Advance............................   45
      Section  4.3      Conditions Precedent to Each Letter of Credit...................   46
ARTICLE 5.         REPRESENTATIONS AND WARRANTIES.......................................   46
      Section  5.1      General Representations and Warranties..........................   46
      Section  5.2      Representations and Warranties Relating to Accounts.............   53
</TABLE>

<PAGE>

<TABLE>
<S>                                                                                          <C>
      Section  5.3      Representations and Warranties Relating to Inventory..............   54
      Section  5.4      Survival of Representations and Warranties, etc...................   54
ARTICLE 6.         GENERAL COVENANTS......................................................   54
      Section  6.1      Preservation of Existence and Similar Matters.....................   54
      Section  6.2      Compliance with Applicable Law....................................   54
      Section  6.3      Maintenance of Properties.........................................   54
      Section  6.4      Accounting Methods and Financial Records..........................   54
      Section  6.5      Insurance.........................................................   55
      Section  6.6      Payment of Taxes and Claims.......................................   55
      Section  6.7      Visits and Inspections............................................   55
      Section  6.8      Conduct of Business...............................................   56
      Section  6.9      ERISA.............................................................   56
      Section 6.10      Lien Perfection...................................................   56
      Section 6.11      Location of Collateral............................................   56
      Section 6.12      Protection of Collateral..........................................   56
      Section 6.13      Assignments and Records of Accounts...............................   57
      Section 6.14      Administration of Accounts........................................   57
      Section 6.15      Deposit Accounts..................................................   58
      Section 6.16      Further Assurances................................................   58
      Section 6.17      Broker's Claims...................................................   58
      Section 6.18      Indemnity.........................................................   59
      Section 6.19      Environmental Matters.............................................   59
      Section 6.20      Formation of Subsidiaries.........................................   60
      Section 6.21      Post Closing Conditions...........................................   61
ARTICLE 7.         INFORMATION COVENANTS..................................................   61
      Section  7.1      Quarterly Financial Statements and Information....................   62
      Section  7.2      Annual Financial Statements and Information;
                        Certificate of No Default.........................................   62
      Section  7.3      Compliance Certificates...........................................   62
      Section  7.4      Access to Accountants.............................................   62
      Section  7.5      Additional Reports................................................   62
      Section  7.6      Notice of Litigation and Other Matters............................   63
ARTICLE 8.         NEGATIVE COVENANTS.....................................................   65
      Section  8.1      Funded Debt.......................................................   65
      Section  8.2      Guaranties........................................................   65
</TABLE>

                                      -2-
<PAGE>

<TABLE>
<S>                                                                                          <C>
      Section   8.3     Liens.............................................................   66
      Section   8.4     Restricted Payments and Purchases.................................   66
      Section   8.5     Investments.......................................................   66
      Section   8.6     Affiliate Transactions............................................   66
      Section   8.7     Liquidation; Change in Ownership, Name, or Fiscal Year;
                        Disposition or Acquisition of Assets; Etc........................    67
      Section   8.8     Interest Coverage Ratio...........................................   68
      Section   8.9     Capital Expenditures..............................................   68
      Section  8.10     Minimum EBITDA....................................................   69
      Section  8.11     Sales and Leasebacks..............................................   69
      Section  8.12     Amendment and Waiver..............................................   69
      Section  8.13     ERISA Liability...................................................   69
      Section  8.14     Prepayments.......................................................   69
      Section  8.15     Negative Pledge, Etc..............................................   70
      Section  8.16     Inconsistent Agreements...........................................   70
ARTICLE 9.         DEFAULT................................................................   70
      Section   9.1     Events of Default.................................................   70
      Section   9.2     Remedies..........................................................   72
ARTICLE 10.        THE ADMINISTRATIVE AGENT...............................................   74
      Section  10.1     Appointment and Authorization.....................................   74
      Section  10.2     Interest Holders..................................................   74
      Section  10.3     Consultation with Counsel.........................................   74
      Section  10.4     Documents.........................................................   74
      Section  10.5     Administrative Agent and Affiliates...............................   74
      Section  10.6     Responsibility of the Administrative Agent........................   74
      Section  10.7     Action by Administrative Agent....................................   75
      Section  10.8     Notice of Default.................................................   75
      Section  10.9     Responsibility Disclaimed.........................................   75
      Section  10.10    Indemnification...................................................   76
      Section  10.11    Credit Decision...................................................   76
      Section  10.12    Successor Administrative Agent....................................   76
      Section  10.13    Administrative Agent May File Proofs of Claim.....................   77
      Section  10.14    Collateral........................................................   77
      Section  10.15    Release of Collateral.............................................   77
ARTICLE 11.        MISCELLANEOUS..........................................................   78
</TABLE>

                                      -3-
<PAGE>

<TABLE>
<S>                                                                                          <C>
      Section  11.1     Notices...........................................................   78
      Section  11.2     Expenses..........................................................   79
      Section  11.3     Waivers...........................................................   80
      Section  11.4     Set-Off...........................................................   80
      Section  11.5     Assignment........................................................   81
      Section  11.6     Counterparts......................................................   82
      Section  11.7     Under Seal; Governing Law.........................................   82
      Section  11.8     Severability......................................................   83
      Section  11.9     Headings..........................................................   83
      Section 11.10     Source of Funds...................................................   83
      Section 11.11     Entire Agreement..................................................   83
      Section 11.12     Amendments and Waivers............................................   83
      Section 11.13     Other Relationships...............................................   84
      Section 11.14     Pronouns..........................................................   84
      Section 11.15     Disclosure........................................................   84
      Section 11.16     Replacement of Lender.............................................   84
      Section 11.17     Confidentiality...................................................   85
      Section 11.18     Revival and Reinstatement of Obligations..........................   85
      Section 11.19     USA Patriot Act...................................................   85
ARTICLE 12.        YIELD PROTECTION.......................................................   86
      Section  12.1     Eurodollar Rate Basis Determination...............................   86
      Section  12.2     Illegality........................................................   86
      Section  12.3     Increased Costs...................................................   86
      Section  12.4     Effect On Other Advances..........................................   88
      Section  12.5     Capital Adequacy..................................................   88
ARTICLE 13.        JURISDICTION, VENUE AND WAIVER OF JURY TRIAL...........................   88
      Section  13.1     Jurisdiction and Service of Process...............................   88
      Section  13.2     Consent to Venue..................................................   89
      Section  13.3     Waiver of Jury Trial..............................................   89
</TABLE>

                                      -4-

<PAGE>

<TABLE>
<CAPTION>
<S>                   <C>
EXHIBITS
--------
Exhibit A             -  Form of Administrative Questionnaire
Exhibit B             -  Form of Assignment and Acceptance
Exhibit C             -  Form of Borrowing Base Certificate
Exhibit D-1           -  Form of Collateral Access Agreement - Landlord
Exhibit D-2           -  Form of Collateral Access Agreement - Bailee
Exhibit E             -  Form of Compliance Certificate
Exhibit F             -  Form of Note
Exhibit G             -  Form of Notice of Conversion/Continuation
Exhibit H             -  Form of Pledge Agreement
Exhibit I             -  Form of Request for Advance
Exhibit J             -  Form of Request for Issuance of Letter of Credit
Exhibit K             -  Form of Security Agreement
Exhibit L-1           -  Form of Secretary's Certificate
Exhibit L-2           -  Form of Officer's Certificate
Exhibit M             -  Form of Guaranty Supplement
</TABLE>

<TABLE>
<CAPTION>
<S>                   <C>
SCHEDULES
---------
Schedule 1(a)         -  Commitment Ratios
Schedule 1(b)         -  Liens
Schedule 1(c)         -  Pro Forma Basis
Schedule 5.1(c)-1     -  Subsidiaries
Schedule 5.1(c)-2     -  Partnerships/Joint Ventures
Schedule 5.1(d)       -  Outstanding Capital Stock Ownership
Schedule 5.1(f)       -  Necessary Authorizations
Schedule 5.1(h)       -  Material Contracts
Schedule 5.1(i)       -  Labor Matters
Schedule 5.1(j)       -  Taxes
Schedule 5.1(m)       -  Investments/Guaranties as of the Agreement Date
Schedule 5.1(n)       -  Litigation
Schedule 5.1(o)       -  ERISA
Schedule 5.1(p)       -  Intellectual Property; Licenses and Certifications
Schedule 5.1(q)       -  Compliance
Schedule 5.1(v)       -  Insurance
Schedule 5.1(w)       -  Brokers' Fees
Schedule 5.1(x) - 1   -  Leased Real Property
Schedule 5.1(x) - 2   -  Owned Real Property
Schedule 5.1(y) - 1   -  Environmental Matters - Compliance
Schedule 5.1(y) - 2   -  Environmental Matters - Notices
Schedule 6.11         -  Location of Collateral
Schedule 6.15         -  Bank and Investment Accounts
Schedule 8.6          -  Affiliate Transactions
</TABLE>

                                      -5-
<PAGE>

                                CREDIT AGREEMENT

                                      among

      THIS CREDIT AGREEMENT dated as of September 9, 2004, is by and among
SECURUS TECHNOLOGIES, INC., as the Borrower, the Subsidiaries of the Borrower
party hereto as the Guarantors, the financial institutions party hereto as the
Lenders, ING CAPITAL LLC, as the Issuing Lender, and ING CAPITAL LLC, as the
Administrative Agent.

                              W I T N E S S E T H:

      WHEREAS, the Borrower, Evercom Holdings, Inc. (the "Target") and other
Persons are parties to the Merger Agreement; and

      WHEREAS, pursuant to the Merger Agreement, the Borrower will, upon the
funding of the Loans under this Agreement and the issuance of Funded Debt
pursuant to the Senior Note Documents and the Subordinated Note Documents,
acquire the Target; and

      WHEREAS, the Borrower has requested that the Administrative Agent, the
Issuing Lender and the Lenders make available to it the Commitments, on the
terms and conditions set forth herein, to, among other things, finance in part
the acquisition by the Borrower of the Stock of the Target and fund transaction
costs and working capital needs of the Borrower and the Guarantors; and

      WHEREAS, the Administrative Agent, the Issuing Lender and the Lenders are
willing to make the Commitments available to the Borrower upon the terms and
conditions set forth herein;

      NOW, THEREFORE, in consideration of the premises and the covenants and
agreements contained herein and other good and valuable consideration the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
hereby agree as follows:

                                   ARTICLE 1.

                     DEFINITIONS, ACCOUNTING PRINCIPLES AND
                           OTHER INTERPRETIVE MATTERS

      Section 1.1 Definitions. For the purposes of this Agreement:

      "Account Debtor" shall mean any Person who is obligated to make payments
in respect of an Account; provided that in the case of any third party billing
aggregator or similar service provider, the "Account Debtor" shall mean the
ultimate LEC that receives the relevant call detail records, any additional
billing records or a monthly bill statement, and bills the end user.

      "Accounts" shall mean all "accounts," as such term is defined in the UCC,
of each Borrower Party whether now existing or hereafter created or arising,
including, without limitation, (i) all accounts receivable, other receivables,
book debts and other forms of obligations (other than forms of obligations
evidenced by chattel paper (as defined in the UCC) or instruments (as defined in
the UCC)) (including any such obligations that may be characterized as an
account or contract right under the UCC), (ii) all of each Borrower Party's
rights in, to and under all purchase orders or receipts for goods or services,
(iii) all of each Borrower Party's rights to any goods represented by any of the
foregoing (including unpaid sellers' rights of rescission, replevin, reclamation
and stoppage in transit and rights to returned, reclaimed or repossessed goods),
(iv) all rights to payment due to a Borrower Party for personal property (and
any real property pledged to the Administrative Agent after the Agreement Date
pursuant to Section 8.7(h))
<PAGE>

sold, leased, licensed, assigned or otherwise disposed of, for a policy of
insurance issued or to be issued, for a secondary obligation incurred or to be
incurred, for energy provided or to be provided, for the use or hire of a vessel
under a charter or other contract, arising out of the use of a credit card or
charge card, or for services rendered or to be rendered by such Borrower Party
or in connection with any other transaction (whether or not yet earned by
performance on the part of such Borrower Party), (v) all health care insurance
receivables and (vi) all collateral security of any kind, given by any Account
Debtor or any other Person with respect to any of the foregoing.

      "additional amount" shall have the meaning specified in Section 2.8(b)(i)
hereof.

      "Administrative Agent" shall mean ING Capital LLC, acting as
administrative agent for the Lender Group, and any successor Administrative
Agent appointed pursuant to Section 10.12.

      "Administrative Agent Indemnified Person" shall have the meaning specified
in Section 10.10 hereof.

      "Administrative Agent's Office" shall mean the office of the
Administrative Agent located at 1325 Avenue of the Americas, New York, New York
10019, Attention: Lissette Ruiz, Associate, or such other office as may be
designated pursuant to the provisions of Section 11.1.

      "Administrative Questionnaire" shall mean a questionnaire substantially in
the form of Exhibit A.

      "Advance" or "Advances" shall mean amounts of the Loans advanced by the
Lenders to, or on behalf of, the Borrower pursuant to Section 2.2 on the
occasion of any borrowing and shall include, without limitation, all Agent
Advances.

      "Affiliate" shall mean, with respect to any Person, any other Person that,
directly or indirectly, is in control of, is controlled by, or is under common
control with such Person, or that is a director, officer or partner of such
Person. For purposes of this definition, "control", when used with respect to
any Person, includes, without limitation, the direct or indirect beneficial
ownership of ten percent (10%) or more of the outstanding Equity Interests of
such Person or the power to direct or cause the direction of the management and
policies of such Person whether by contract or otherwise.

      "Agent Advances" shall have the meaning specified in Section 2.1(d)
hereof.

      "Aggregate Commitment Ratio" shall mean, with respect to any Lender, the
ratio, expressed as a percentage, of (i) the unutilized Commitment plus Loans
(other than Agent Advances) outstanding plus participation interests in Letter
of Credit Obligations and Agent Advances outstanding of such Lender, divided by
(ii) the sum of the aggregate unutilized Commitments plus Loans (other than
Agent Advances) outstanding plus participation interests in Letter of Credit
Obligations and Agent Advances of all Lenders, which, as of the Agreement Date,
are set forth (together with Dollar amounts thereof) on Schedule 1(a).

      "Aggregate Revolving Credit Obligations" shall mean, as of any particular
time, without duplication, the sum of (a) the aggregate principal amount of all
Revolving Loans then outstanding, plus (b) the aggregate principal amount of all
Agent Advances then outstanding, plus (c) the aggregate amount of all Letter of
Credit Obligations then outstanding.

      "Agreement" shall mean this Credit Agreement, together with all exhibits
and schedules hereto.

      "Agreement Date" shall mean the date as of which this Agreement is dated.

                                       2
<PAGE>

      "Anti-Terrorism Laws" shall mean 18 U.S.C. ss.ss. 1956 and 1957, Executive
Order No. 13224 and the USA Patriot Act, and any regulations relating thereto.

      "Applicable Law" shall mean, in respect of any Person, all provisions of
constitutions, statutes, rules, regulations, and orders of governmental bodies
or regulatory agencies applicable to such Person, and all orders and decrees of
all courts and arbitrators in proceedings or actions to which the Person in
question is a party or by which it is bound.

      "Appreciable" shall mean material in relation to the business, operations,
financial condition, assets, or properties of the Borrower and its Subsidiaries
taken as a whole.

      "Approved Fund" shall mean any Fund that is administered or managed by (a)
a Lender, (b) an Affiliate of a Lender or (c) an entity that administers or
manages a Lender.

      "Assignment and Acceptance" shall mean that certain form of Assignment and
Acceptance attached hereto as Exhibit B, pursuant to which each Lender may, as
further provided in Section 11.5, sell a portion of its Loans or Commitments.

      "Authorized Signatory" shall mean, with respect to any Borrower Party,
such senior personnel of such Borrower Party as may be duly authorized and
designated in writing to the Administrative Agent by such Borrower Party to
execute documents, agreements, and instruments on behalf of such Borrower Party.

      "Availability" shall mean, as of any particular time, (a) the lesser of
(i) the Commitments and (ii) the Borrowing Base, minus (b) in each case, the
Aggregate Revolving Credit Obligations.

      "Available Letter of Credit Amount" shall mean, as of any particular time,
an amount equal to the lesser of (a) the Letter of Credit Commitment at such
time less the aggregate amount of all Letter of Credit Obligations than
outstanding and (b) Availability at such time.

      "Avoidance Provisions" shall mean the substantive state or federal laws
under which the possible avoidance or unenforceability of the Obligations of any
Borrower hereunder (or any other Obligations of such Borrower to the Lender
Group and any other Person holding any of the Obligations) shall be determined
in any such case or proceeding.

      "Bad Debt Reserve" shall have the meaning specified in the Borrowing Base
Certificate.

      "Bankruptcy Code" shall mean the United States Bankruptcy Code (11 U.S.C.
Section 101 et seq.), as now or hereafter amended, and any successor statute and
any rules and regulations promulgated thereunder.

      "Billing Tape" shall mean a billing tape or other data format presentable
to an LEC in accordance with the applicable LEC Agreement or to a billing
aggregator in accordance with the agreement with such billing aggregator.

      "Blocked Person" shall have the meaning specified in Section 5.1(dd)(ii)
hereof.

      "Borrower" shall mean Securus Technologies, Inc., a Delaware corporation.

      "Borrower Parties" shall mean, collectively, the Borrower and the
Guarantors; and "Borrower Party" shall mean any one of the foregoing Borrower
Parties.

                                       3
<PAGE>

      "Borrower Payments" shall have the meaning specified in Section 2.8(b)(i)
hereof.

      "Borrowing Base" shall mean, at any particular time, the sum of:

            (a)   up to 80% of Eligible Accounts; plus

            (b)   up to 50% of Eligible Inventory; minus

            (c)   the Reserves.

      "Borrowing Base Certificate" shall mean a certificate of an Authorized
Signatory of the Borrower substantially in the form of Exhibit C.

      "Business Day" shall mean any day excluding Saturday, Sunday and any day
which is a legal holiday under the laws of the State of New York or is a day on
which banking institutions located in such state are closed; provided, however,
that when used with reference to a Eurodollar Advance (including the making,
continuing, prepaying or repaying of any Eurodollar Advance), the term "Business
Day" shall also exclude any day in which banks are not open for dealings in
deposits of Dollars on the London interbank market.

      "Capital Expenditure Carry Forward Amount" shall mean, to the extent
positive, for any fiscal year, a carry forward amount equal to (a) for calendar
year 2005, the lesser of (i) $9,000,000 less the aggregate amount of Capital
Expenditures made pursuant to Section 8.9 in the previous period and (ii)
$5,000,000 and (b) for calendar year 2006 and each calendar year thereafter, the
lesser of (i) $22,000,000 less the aggregate amount of Capital Expenditures made
pursuant to Section 8.9 in the immediately preceding period and (ii) $5,000,000.

      "Capital Expenditures" shall mean, for any period, on a consolidated basis
for the Borrower Parties, the aggregate of all expenditures made by the Borrower
Parties during such period that, in conformity with GAAP, are required to be
included in or reflected on the consolidated balance sheet as a capital asset of
the Borrower Parties, including, without limitation, the current portion of
Capitalized Lease Obligations of the Borrower Parties but excluding capital
expenditures consisting of line cards and equipment related thereto recovered
from customers, returned to Inventory, and then subsequently installed at a new
customer to the extent such items do not constitute a cash expenditure.

      "Capitalized Lease Obligation" shall mean that portion of any obligation
of a Person as lessee under a lease which at the time would be required to be
capitalized on the balance sheet of such lessee in accordance with GAAP.

      "Cash Equivalents" shall mean, collectively, (a) marketable, direct
obligations of the US and its agencies maturing within three hundred sixty-five
(365) days of the date of purchase, (b) commercial paper issued by corporations,
each of which shall (i) have a consolidated net worth of at least $250,000,000,
and (ii) conduct substantially all of its business in the US, which commercial
paper will mature within one hundred eighty (180) days from the date of the
original issue thereof and is rated "P-1" or better by Moody's or "A-1" or
better by S&P, (c) certificates of deposit maturing within three hundred
sixty-five (365) days of the date of purchase and issued by a US national or
state bank having deposits totaling more than $250,000,000, and whose short-term
debt is rated "P-1" or better by Moody's or "A-1" or better by S&P, and (d) up
to $100,000 per institution and up to $1,000,000 in the aggregate in (i)
short-term obligations issued by any local commercial bank or trust company
located in those areas where the Borrower conducts its business, whose deposits
are insured by the Federal Deposit Insurance Corporation,

                                       4
<PAGE>

or (ii) commercial bank-insured money market funds, or any combination of the
types of investments described in this clause (d).

      "Change in Control" shall mean:

            (a) prior to the first public offering of common stock of the
Borrower, the Permitted Holders cease to be the "beneficial owner" (as defined
in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of at
least 40% of the total voting power of the Voting Stock of the Borrower, whether
as a result of issuance of securities of the Borrower, any merger,
consolidation, liquidation or dissolution of the Borrower, or any direct or
indirect transfer of securities (for purposes of this clause (a) and clause (b)
below, the Permitted Holders shall be deemed to beneficially own any Voting
Stock of a Person (the "specified person") held by any other Person (the "parent
entity") so long as the Permitted Holders beneficially own (as so defined),
directly or indirectly, in the aggregate a majority of the voting power of the
Voting Stock of the parent entity);

            (b) any "person" (as such term is used in Sections 13(d) and 14(d)
of the Exchange Act), other than one or more Permitted Holders, is or becomes
the beneficial owner (as defined in clause (a) above, except that for purposes
of this clause (b) such person shall be deemed to have "beneficial ownership" of
all shares that any such person has the right to acquire, whether such right is
exercisable immediately or only after the passage of time), directly or
indirectly, of more than 50% of the total voting power of the Voting Stock of
the Borrower (for the purposes of this clause (b), such other person shall be
deemed to beneficially own any Voting Stock of a specified person held by a
parent entity, if such other person is the beneficial owner (as defined in this
clause (b)), directly or indirectly, of more than 50% of the voting power of the
Voting Stock of such parent entity);

            (c) individuals who on the Agreement Date constituted the Board of
Directors (together with any new directors whose election by such Board of
Directors or whose nomination for election by the stockholders of the Borrower
was approved by a vote of 66-2/3% of the directors of the Borrower then still in
office who were either directors on the Agreement Date or whose election or
nomination for election was previously so approved) cease for any reason to
constitute a majority of the Board of Directors then in office; provided,
however, that any individual appointed by H.I.G. (or an Affiliate of H.I.G.) to
replace any existing H.I.G. Director shall be deemed to have been a member of
the Board of Directors on the Agreement Date;

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

            (e) the merger or consolidation of the Borrower with or into another
Person or the merger of another Person with or into the Borrower, or the sale of
all or substantially all the assets of the Borrower (determined on a
consolidated basis) to another Person other than (i) a transaction in which the
survivor or transferee is a Person that is controlled by the Permitted Holders
or (ii) a transaction following which (A) in the case of a merger or
consolidation transaction, holders of securities that represented at least a
majority of the Voting Stock of the Borrower immediately prior to such
transaction (or other securities into which such securities are converted as
part of such merger or consolidation transaction) own directly or indirectly at
least a majority of the voting power of the Voting Stock of the surviving Person
in such merger or consolidation transaction immediately after such transaction
and (B) in the case of a sale of assets transaction, each transferee becomes a
Guarantor; or

            (f) the Borrower ceases to be the beneficial owner (as defined in
clause (a) above), directly or indirectly, of 100% of the Voting Stock of each
of T-Netix and Evercom, or, following a merger of T-Netix and Evercom, such
surviving entity.

                                       5
<PAGE>

      "Code" shall mean the Internal Revenue Code of 1986, as amended from time
to time.

      "Collateral" shall mean all property pledged as collateral security for
the Obligations pursuant to the Security Documents or otherwise, and all other
non-real estate property (and any real property pledged to the Administrative
Agent after the Agreement Date pursuant to Section 8.7(h)) of any Borrower Party
that is now or hereafter in the possession or control of any member of the
Lender Group, or on which any member of the Lender Group has been granted a
Lien.

      "Collateral Access Agreement" shall mean any agreement of any lessor,
warehouseman, processor, consignee or other Person in possession of, having a
Lien upon or having rights or interests in, any of the Collateral in favor of
the Administrative Agent, for the benefit of the Lender Group, substantially in
the form of Exhibit D-1 or Exhibit D-2 or otherwise in form and substance
reasonably satisfactory to the Administrative Agent, waiving or subordinating
Liens such Person may hold in regard to the non-real estate property of any of
the Borrower Parties and providing the Administrative Agent access to its
Collateral.

      "Commercial Letter of Credit" shall mean a documentary Letter of Credit
issued by the Issuing Lender in respect of the purchase of goods or services by
the Borrower in the ordinary course of its business.

      "Commitment Ratio" shall mean, with respect to any Lender, the ratio,
expressed as a percentage, of (a) the Commitment of such Lender, divided by (b)
the Commitment of all Lenders, which, as of the Agreement Date, are set forth
(together with Dollar amounts thereof) on Schedule 1(a).

      "Commitments" shall mean the several obligations of the Lenders to advance
the aggregate amount of up to $30,000,000 to the Borrower on or after the
Agreement Date, in accordance with their respective Commitment Ratios, pursuant
to the terms of this Agreement, and as such amount may be reduced from time to
time pursuant to the terms of this Agreement.

      "Compliance Certificate" shall mean a certificate executed by an
Authorized Signatory of the Borrower substantially in the form of Exhibit E.

      "Control Agreement" shall mean any "authenticated" (as defined in the UCC)
agreement between a depository bank or a securities intermediary, as applicable,
and the Administrative Agent, for the benefit of the Lender Group, and
acknowledged and agreed to by the applicable Borrower Party, in form acceptable
to the Administrative Agent in its sole discretion.

      "Copyright Security Agreements" shall mean, collectively, the Copyright
Security Agreements made in favor of the Administrative Agent, on behalf of the
Lender Group, from time to time.

      "Customer Dispute" shall mean all instances in which (i) a customer of the
Borrower has rejected or returned the goods and such return or rejection has not
been accepted by the Borrower as a valid return or rejection, or (ii) a customer
of the Borrower has otherwise affirmatively asserted grounds for nonpayment of
an Account, including, without limitation, any repossession of goods by the
Borrower, or any claim by an Account Debtor of total or partial failure of
delivery, set-off, counterclaim, or breach of warranty.

      "Date of Issue" shall mean the date on which the Issuing Lender issues a
Letter of Credit pursuant to Section 2.15.

                                       6
<PAGE>

      "Default" shall mean any Event of Default, and any of the events specified
in Section 9.1 regardless of whether there shall have occurred any passage of
time or giving of notice (or both) that would be necessary in order to
constitute such event an Event of Default.

      "Default Rate" shall mean a simple per annum interest rate equal to, with
respect to all outstanding Obligations, the sum of (a) the highest applicable
Interest Rate Basis (including, for this purpose, the Interest Rate Margin in
the Eurodollar Basis), plus (b) two percent (2.00%); provided, however, that (i)
as to any Eurodollar Advance outstanding on the date that the Default Rate
becomes applicable, the Default Rate shall be based on the then applicable
Eurodollar Basis until the end of the current Eurodollar Advance Period and
thereafter the Default Rate shall be based on the Prime Rate as in effect from
time to time and (ii) as to any Prime Rate Advance outstanding on the date that
the Default Rate becomes applicable, the Default Rate shall be based on the
Prime Rate as in effect from time to time.

      "Disbursement Account" shall mean account number 06300066423 maintained at
JPMorgan Chase Bank, or as otherwise designated to the Administrative Agent by
the Borrower.

      "Distributable Cash Flow" shall mean the sum of (without duplication):

      (a) fifty percent (50%) of the Consolidated Net Income (for purposes of
this definition, as defined in the Indenture) accrued during the period (treated
as one accounting period) from the beginning of the fiscal quarter immediately
following the fiscal quarter during which the Agreement Date occurs to the end
of the most recent fiscal quarter ending at least 45 days prior to the date of
such payment described in Section 8.4(e) (or, in case such Consolidated Net
Income shall be a deficit, minus one hundred percent (100%) of such deficit);
plus

      (b) one hundred percent (100%) of the aggregate Net Cash Proceeds (for
purposes of this definition, as defined in the Indenture) received by the
Borrower from the issuance or sale of its Capital Stock (for purposes of this
definition, as defined in the Indenture) (other than Disqualified Stock (for
purposes of this definition, as defined in the Indenture)) subsequent to the
Agreement Date (other than an issuance or sale to a Subsidiary of the Borrower
and other than an issuance or sale to an employee stock ownership plan or to a
trust established by the Borrower or any of its Subsidiaries for the benefit of
their employees) and one hundred percent (100%) of any cash capital contribution
received by the Borrower from its stockholders subsequent to the Agreement Date;
plus

      (c) the amount by which Indebtedness (for purposes of this definition, as
defined in the Indenture) of the Borrower is reduced upon the conversion or
exchange subsequent to the Agreement Date of any Indebtedness of the Borrower
convertible or exchangeable for Capital Stock (other than Disqualified Stock) of
the Borrower (less the amount of any cash, or the fair value of any other
property, distributed by the Borrower upon such conversion or exchange);
provided, however, that the foregoing amount shall not exceed the Net Cash
Proceeds received by the Borrower or any Restricted Subsidiary (for purposes of
this definition, as defined in the Indenture) from the sale of such Indebtedness
(excluding Net Cash Proceeds from sales to a Subsidiary of the Borrower or to an
employee stock ownership plan or to a trust established by the Borrower or any
of its Subsidiaries for the benefit of their employees); plus

      (d) an amount equal to the sum of (i) the net reduction in the Investments
(for purposes of this definition, as defined in the Indenture) (other than
Permitted Investments (for purposes of this definition, as defined in the
Indenture)) made by the Borrower or any Restricted Subsidiary in any Person
resulting from repurchases, repayments or redemptions of such Investments by
such Person, proceeds realized on the sale of such Investment and proceeds
representing the return of capital (excluding dividends and distributions), in
each case received by the Borrower or any Restricted Subsidiary and (ii) to the
extent such Person is an Unrestricted Subsidiary (for purposes of this
definition, as defined in the

                                       7
<PAGE>

Indenture), the portion (proportionate to the Borrower's equity interest in such
Subsidiary) of the fair market value of the net assets of such Unrestricted
Subsidiary at the time such Unrestricted Subsidiary is designated a Restricted
Subsidiary; provided, however, that the foregoing sum shall not exceed, in the
case of any such Person or Unrestricted Subsidiary, the amount of Investments
(excluding Permitted Investments) previously made and treated as a Restricted
Payment (for purposes of this definition, as defined in the Indenture) by the
Borrower or any Restricted Subsidiary in such Person or Unrestricted Subsidiary;
minus

      (e) the aggregate amount of all Restricted Payments since the Agreement
Date.

      "Dividends" shall mean, any direct or indirect distribution, dividend, or
payment to any Person on account of any Equity Interests of any Borrower Party.

      "Dollars" or "$" shall mean the lawful currency of the United States of
America.

      "Domestic Subsidiary" shall mean any Subsidiary of the Borrower that is
organized and existing under the laws of the US or any state or commonwealth
thereof or under the laws of the District of Columbia.

      "EBITDA" shall mean, with respect to the Borrower on a consolidated basis
with its Subsidiaries for any period, the Net Income for such period, plus (a)
without duplication and to the extent deducted in determining Net Income for
such period, the sum of (i) income taxes, (ii) Interest Expense, (iii)
depreciation and amortization expense, (iv) all other non-cash charges and
non-cash losses, (v) purchase accounting adjustments, (vi) non-recurring
severance payments and expenses relating thereto in the ordinary course of
business or as a result of the consummation of the Tender Offer, the T-Netix
Consolidation and the Merger, (vii) fees, costs and expenses incurred in
connection with the Tender Offer, the T-Netix Consolidation and the transactions
consummated on the Agreement Date and contemplated by the Loan Documents, the
Merger Documents and the Senior Note Documents to the extent such fees, costs
and expenses are disclosed to the Administrative Agent in writing, (viii) the
fees payable to H.I.G. under the Management Agreements, (ix) other success
bonuses paid to H.I.G. or its Affiliates, (x) extraordinary losses, (xi) fees to
directors of the Borrower and to former shareholders of the Target as
contemplated by Section 8.4(c) and (xii) fees, costs and expenses incurred in
connection with the restructuring of the Target and its Subsidiaries to the
extent such fees, costs and expenses (A) are disclosed to the Administrative
Agent in writing and (B) do not exceed $210,000 in the aggregate minus (b)
without duplication and to the extent added in computing Net Income for such
period, (i) non-cash gains and other non-cash income and (ii) extraordinary
gains; provided, however, that if any such calculation includes any period in
which an acquisition or sale of a Person or all or substantially all of the
assets of a Person occurred, then such calculation shall be made on a Pro Forma
Basis.

      "Eligible Accounts" shall have the meaning specified in the Borrowing Base
Certificate; provided, however, that for purposes of calculating Eligible
Accounts immediately prior to the Merger, references in this definition to
"Accounts" shall include accounts of the Target to be acquired by the Borrower
pursuant to the Merger Agreement.

      "Eligible Assignee" shall mean (a) a Lender; (b) an Affiliate of a Lender;
(c) an Approved Fund; or (d) any other Person approved by (i) the Administrative
Agent, (ii) with respect to any proposed assignee of the Commitment, the Issuing
Lender and, (iii) unless (x) such Person is taking delivery of an assignment in
connection with physical settlement of a credit derivatives transaction or (y)
an Event of Default exists, the Borrower, such approvals not to be unreasonably
withheld or delayed; provided, however, that if the consent of the Borrower to
an assignment or to an Eligible Assignee is required hereunder (including a
consent to an assignment which does not meet the minimum assignment

                                       8
<PAGE>

thresholds specified in Section 11.5(b)), the Borrower shall be deemed to have
given its consent ten (10) Business Days after the date notice thereof has been
delivered by the assigning Lender (through the Administrative Agent) unless such
consent is expressly refused by the Borrower prior to such tenth (10th) Business
Day.

      "Eligible Inventory" shall have the meaning specified in the Borrowing
Base Certificate; provided, however, that for purposes of calculating Eligible
Inventory immediately prior to the Merger, references in this definition to
"Inventory" shall include accounts of the Target to be acquired by the Borrower
pursuant to the Merger Agreement.

      "Employment Agreement" shall have the meaning ascribed thereto in Section
4.1(f).

      "Environmental Laws" shall mean, collectively, any and all applicable
federal, state, local or municipal laws, rules, orders, regulations, statutes,
ordinances, codes, decrees or requirements of any Governmental Authority
regulating, relating to or imposing liability or standards of conduct concerning
environmental protection matters, including without limitation, Hazardous
Materials, as now or may at any time during the term of this Agreement be in
effect.

      "Equity Interests" shall mean, as applied to any Person, any capital
stock, membership interests, partnership interests or other equity interests of
such Person, regardless of class or designation, and all warrants, options,
purchase rights, conversion or exchange rights, voting rights, calls or claims
of any character with respect thereto.

      "ERISA" shall mean the Employee Retirement Income Security Act of 1974, as
in effect on the Agreement Date and as such Act may be amended thereafter from
time to time.

      "ERISA Affiliate" shall mean, with respect to any Borrower Party, any
trade or business (whether or not incorporated) that together with such Borrower
Party, are treated as a single employer under Section 414(b), (c), (m) and (o)
of the Code.

      "ERISA Event" shall mean, with respect to any Borrower Party or any ERISA
Affiliate, (a) any "reportable event" within the meaning of Section 4043 of
ERISA with respect to a Title IV Plan for which the thirty (30) day notice
period has not been waived; (b) the withdrawal of any Borrower Party or ERISA
Affiliate from a Title IV Plan subject to Section 4063 of ERISA during a plan
year in which it was a substantial employer, as defined in Section 4001(a)(2) of
ERISA; (c) the complete or partial withdrawal of any Borrower Party or any ERISA
Affiliate from any Multiemployer Plan; (d) the filing of a notice of intent to
terminate a Title IV Plan or the treatment of a plan amendment as a termination
under Section 4041 of ERISA; (e) the institution of proceedings to terminate a
Title IV Plan or Multiemployer Plan by the PBGC; (f) the reorganization or
insolvency of a Multiemployer Plan under Section 4241 or 4245 of ERISA; (g) the
failure by any Borrower Party or ERISA Affiliate to make when due required
contributions to a Multiemployer Plan or Title IV Plan unless such failure is
cured within thirty (30) days; (h) any other event or condition that would
reasonably be expected to constitute grounds under Section 4042 of ERISA for the
termination of, or the appointment of a trustee to administer, any Title IV Plan
or Multiemployer Plan or for the imposition of liability under Section 4069 or
4212(c) of ERISA, or (i) the revocation of a Plan's tax-qualified status under
Code Section 401(a).

      "Eurodollar Advance" shall mean an Advance which the Borrower requests to
be made as a Eurodollar Advance or which is continued as or converted to a
Eurodollar Advance, in accordance with the provisions of Section 2.2.

                                       9
<PAGE>

      "Eurodollar Advance Period" shall mean, for each Eurodollar Advance, each
one, two, three, or six month period, as selected by the Borrower pursuant to
Section 2.2, during which the applicable Eurodollar Rate (but not the Interest
Rate Margin) shall remain unchanged. Notwithstanding the foregoing, however: (a)
any applicable Eurodollar Advance Period which would otherwise end on a day
which is not a Business Day shall be extended to the next succeeding Business
Day, unless such Business Day falls in another calendar month, in which case
such Eurodollar Advance Period shall end on the next preceding Business Day; (b)
any applicable Eurodollar Advance Period which begins on a day for which there
is no numerically corresponding day in the calendar month during which such
Eurodollar Advance Period is to end shall (subject to clause (a) above) end on
the last day of such calendar month; and (c) no Eurodollar Advance Period shall
extend beyond the Maturity Date or such earlier date as would interfere with the
repayment obligations of the Borrower under Section 2.6.

      "Eurodollar Basis" shall mean, with respect to each Eurodollar Advance
Period, a simple per annum interest rate equal to the quotient of (i) the
Eurodollar Rate divided by (ii) one minus the Eurodollar Reserve Percentage,
stated as a decimal. The Eurodollar Basis shall remain unchanged during the
applicable Eurodollar Advance Period, except for changes to reflect adjustments
in the Eurodollar Reserve Percentage.

      "Eurodollar Rate" shall mean, for any applicable Eurodollar Advance
Period, the rate per annum quoted at or about 11:00 a.m. (London, England time)
two (2) Business Days prior to the first day of the Eurodollar Advance Period on
that page of the Reuters, Telerate or Bloomberg reporting service (as then being
used by the Administrative Agent to obtain such interest rate quotes) that
displays British Banker's Association Interest Settlement Rates for deposits in
Dollars for a period equal to such Eurodollar Advance Period or if such page or
such service shall cease to be available, such other page or service (as the
case may be) for the purpose of displaying British Banker's Association Interest
Settlement Rates as reasonably determined by the Administrative Agent upon
advising the Borrower as to the use of any such other service; provided, that if
the Administrative Agent determines that the relevant foregoing sources are
unavailable for the relevant Eurodollar Advance Period, the Eurodollar Rate
shall mean the rate of interest determined by the Administrative Agent to be the
average (rounded upward, if necessary, to the nearest one one-hundredth of one
percent (1/100th of 1%)) of the rates per annum at which deposits in Dollars are
offered to the Administrative Agent two (2) Business Days preceding the first
day of such Eurodollar Advance Period by leading banks in the London interbank
market as of 10:00 a.m. for delivery on the first day of such Eurodollar Advance
Period, for the number of days comprised therein and in an amount comparable to
the amount of the applicable Eurodollar Advance; provided, further, that if no
such offered rates appear on such page and the Administrative Agent is providing
any Hedge Agreement in effect on such date, the Eurodollar Rate for such
Eurodollar Advance Period will be the applicable floating rate payable by the
Administrative Agent with respect to the applicable Hedge Agreement (without
regard to any applicable margins added thereto under the terms of such Hedge
Agreement).

      "Eurodollar Reserve Percentage" shall mean the aggregate of the maximum
reserve percentages (including, without limitation, any emergency, supplemental,
special or other marginal reserves) expressed as a decimal (rounded upwards to
the next one one-hundredth of one percent (1/100th of 1%)) in effect on any day
to which the Administrative Agent is subject with respect to the Eurodollar
Basis pursuant to regulations issued by the Board of Governors of the Federal
Reserve System (or any Governmental Authority succeeding to any of its principal
functions) ("Regulation D") with respect to Eurocurrency Liabilities (as that
term is defined in Regulation D). Eurodollar Advances shall be deemed to
constitute Eurocurrency Liabilities and to be subject to such reserve
requirements without benefit of or credit for proration, exemptions or offsets
that may be available from time to time to the Administrative Agent under
Regulation D. The Eurodollar Reserve Percentage shall be adjusted automatically
on and as of the effective date of any change in any reserve percentage. The
Eurodollar Basis for any Eurodollar Advance shall be adjusted as of the
effective date of any changes in the Eurodollar Reserve Percentage.

                                       10
<PAGE>

      "Event of Default" shall mean any of the events specified in Section 9.1,
provided that any requirement for notice or lapse of time, or both, has been
satisfied.

      "Executive Order No. 13224" shall mean Executive Order No. 13224 on
Terrorist Financing, effective September 24, 2001, as the same has been, or
shall hereafter be, renewed, extended, amended or replaced.

      "Federal Funds Rate" shall mean, for any day, the rate set forth in the
weekly statistical release designated as H.15(519), or any successor
publication, published by the Federal Reserve Bank of New York (including any
such successor, "H.15(519)") on the preceding Business Day opposite the caption
"Federal Funds (Effective)"; or, if for any relevant day such rate is not so
published on any such preceding Business Day, the rate for such day will be the
arithmetic mean as determined by the Administrative Agent of the rates for the
last transaction in overnight Federal funds arranged prior to 12:00 noon
(Atlanta, Georgia time) on that day by each of three leading brokers of Federal
funds transactions in New York, New York selected by the Administrative Agent.

      "Fee Letter" shall mean that certain fee letter of even date herewith
executed by the Borrower and addressed to ING Capital LLC.

      "Financial Covenants" shall mean the financial covenants applicable to the
Borrower Parties from time to time pursuant to Sections 8.8, 8.9 and 8.10.

      "Foreign Lender" shall have the meaning specified in Section 2.8(b)(v).

      "Foreign Subsidiary" shall mean any Subsidiary of a Borrower Party that is
not a Domestic Subsidiary.

      "Fund" shall mean any Person that is (or will be) engaged in making,
purchasing, holding or otherwise investing in commercial loans and similar
extensions of credit in the ordinary course of its business.

      "Funded Debt" shall mean, with respect to the Borrower and its
Subsidiaries on a consolidated basis and without duplication, as of any
calculation date, (a) any obligation of such Person for borrowed money,
including, without limitation, all of the Obligations; (b) any obligation of
such Person evidenced by bonds, debentures, notes or other similar instruments;
(c) any obligation of such Person to pay the deferred purchase price of property
or for services (other than in the ordinary course of business); (d) any
Capitalized Lease Obligation; (e) any obligation or liability of others secured
by a Lien on property owned by such Person, whether or not such obligation or
liability is assumed; (f) any reimbursement obligations (contingent or
otherwise) of such Person with respect to letters of credit, bankers acceptances
and similar instruments issued for the account of such Person; (g) any Guaranty
(except items of shareholders' equity or Equity Interests or surplus or general
contingency or deferred tax reserves); (h) any financial obligation of such
Person under purchase money mortgages; (i) any financial obligation of such
Person under asset securitization vehicles; (j) any obligations of such Person
under conditional sales contracts and similar title retention instruments with
respect to property acquired; and (k) any financial obligation of such Person as
issuer of Equity Interests redeemable in whole or in part at the option of a
Person other than such issuer, at a fixed and determinable date or upon the
occurrence of an event not solely within the control of such issuer.

      "GAAP" shall mean generally accepted accounting principles and practices
set forth from time to time in the opinions and pronouncements of the Accounting
Principles Board and the American Institute of Certified Public Accountants and
statements and pronouncements of the Financial Accounting

                                       11
<PAGE>

Standards Board (or agencies with similar functions of comparable stature and
authority within the US accounting profession).

      "Governmental Authority" shall mean any nation or government, any state or
other political subdivision thereof and any governmental entity exercising
executive, legislative, judicial, regulatory or administrative functions of or
pertaining to any government.

      "Guarantors" shall mean, collectively, the Subsidiary Guarantors; and
"Guarantor" shall mean any one of the foregoing Guarantors.

      "Guaranty" or "guaranteed," as applied to an obligation (each a "primary
obligation"), shall mean and include (a) any guaranty, direct or indirect, in
any manner, of any part or all of such primary obligation, and (b) any
agreement, direct or indirect, contingent or otherwise, the practical effect of
which is to assure in any way the payment or performance (or payment of damages
in the event of non-performance) of any part or all of such primary obligation,
including, without limiting the foregoing, any reimbursement obligations as to
amounts drawn down by beneficiaries of outstanding letters of credit, and any
obligation of any Person, whether or not contingent, (i) to purchase any such
primary obligation or any property or asset constituting direct or indirect
security therefor, (ii) to advance or supply funds (1) for the purchase or
payment of such primary obligation or (2) to maintain working capital, equity
capital or the net worth, cash flow, solvency or other balance sheet or income
statement condition of any other Person, (iii) to purchase property, assets,
securities or services primarily for the purpose of assuring the owner or holder
of any primary obligation of the ability of the primary obligor with respect to
such primary obligation to make payment thereof or (iv) otherwise to assure or
hold harmless the owner or holder of such primary obligation against loss in
respect thereof. All references in this Agreement to "this Guaranty" shall be to
the Guaranty provided for pursuant to the terms of Article 3.

      "Guaranty Supplement" shall have the meaning specified in Section 6.20.

      "Hazardous Materials" shall mean any hazardous materials, hazardous
wastes, hazardous constituents, hazardous or toxic substances, petroleum
products (including crude oil or any fraction thereof), friable asbestos
containing materials defined or regulated as such in or under any Environmental
Law.

      "Hedge Agreement" shall mean any and all transactions, agreements or
documents now existing or hereafter entered into between or among any Borrower
Party, on the one hand, and the Administrative Agent (or an Affiliate of the
Administrative Agent), on the other hand, which provides for an interest rate,
credit or equity swap, cap, floor, collar, forward foreign exchange transaction,
currency swap, cross currency rate swap, currency option, or any combination of,
or option with respect to, these or similar transactions, for the purpose of
hedging such Borrower Party's exposure to fluctuations in interest or exchange
rates, loan, credit exchange, security or currency valuations.

      "H.I.G." shall mean H.I.G. Capital LLC, a Delaware limited liability
company.

      "H.I.G. Directors" shall mean Sami Mnaymneh, Tony Tamer, Brian Schwartz,
Douglas Berman and Lewis Schoenwetter and their successors designated by H.I.G.
or its Affiliates.

      "Indemnified Person" shall mean each member of the Lender Group, each
Affiliate thereof and each of their respective employees, representatives,
officers and directors.

                                       12
<PAGE>

      "Indenture" shall mean that certain Indenture dated as of the Agreement
Date, among the Borrower, the "Subsidiary Guarantors" (as defined in the
Indenture) and the Indenture Trustee, as in effect on the Agreement Date.

      "Indenture Trustee" shall mean (a) The Bank of New York, in its capacity
as trustee under the Indenture, or (b) any successor trustee under the Indenture
from time to time.

      "Intercreditor Agreement" means that certain Intercreditor Agreement
between the Administrative Agent and the Indenture Trustee, dated as of the
Agreement Date, in form and substance satisfactory to the Administrative Agent.

      "Interest Coverage Ratio" shall mean, with respect to the Borrower and its
Subsidiaries on a consolidated basis for any period, the ratio of (a) EBITDA
plus any Junior Capital issued by the Borrower during such period to (b)
Interest Expense during such period.

      "Interest Expense" shall mean, for any period, cash interest expense of
the Borrower and its Subsidiaries, determined on a consolidated basis in
accordance with GAAP, in respect of the Loan Documents and the Senior Note
Documents.

      "Interest Rate Basis" shall mean the Prime Rate or the Eurodollar Basis,
as applicable.

      "Interest Rate Margin" shall mean 2.50% per annum.

      "Inventory" shall mean all "inventory," as such term is defined in the
UCC, of each Borrower Party, whether now existing or hereafter acquired,
wherever located, and in any event including inventory, merchandise, goods and
other personal property that are held by or on behalf of a Borrower Party for
sale or lease or are furnished or are to be furnished under a contract of
service, goods that are leased by a Borrower Party as lessor, or that constitute
raw materials, samples, work-in-process, finished goods, returned goods,
promotional materials or materials or supplies of any kind, nature or
description used or consumed or to be used or consumed in such Borrower Party's
business or in the processing, production, packaging, promotion, delivery or
shipping of the same, including all supplies and embedded software.

      "Inventory Reserve" shall have the meaning specified in the Borrowing Base
Certificate.

      "Investment" shall mean, with respect to any Person, any loan, advance or
extension of credit by such Person to, or any Guaranty with respect to the
Equity Interests, Funded Debt or other obligations of, or any contributions to
the capital of, any other Person, or any ownership, purchase or other
acquisition by such Person of any Equity Interests of any other Person, other
than any acquisition of all or substantially all of the Equity Interests of a
Person or all or substantially all of the assets, property or business of a
Person.

      "Issuing Lender" shall mean ING Capital LLC, or any other Person who
hereafter may be designated as the Issuing Lender pursuant to an Assignment and
Acceptance or otherwise.

      "Junior Capital" shall mean the amount of any equity that is issued by the
Borrower after the Agreement Date.

      "LEC" shall mean any independent local exchange company, provider of local
telecommunications services, long distance telecommunications services, or
clearinghouse.

                                       13
<PAGE>

      "LEC Agreement" shall mean any document, agreement or contract between a
Borrower Party and an LEC which provides for billing and/or collection services,
as the same may be amended, modified or replaced from time to time.

      "Lender Group" shall mean, collectively, the Administrative Agent, the
Issuing Lender and the Lenders. In addition, if ING Capital LLC ceases to be the
Administrative Agent, then for any Hedge Agreement entered into by any Borrower
Party with ING Capital LLC while it was the Administrative Agent, ING Capital
LLC or its Affiliate party to any Hedge Agreements shall be a deemed to be a
member of the Lender Group for purposes of determining the secured parties under
any Security Documents.

      "Lenders" shall mean those lenders whose names are set forth on the
signature pages to this Agreement under the heading "Lenders" and any assignees
of the Lenders who hereafter become parties hereto pursuant to and in accordance
with Section 11.5; and "Lender" shall mean any one of the foregoing Lenders.

      "Letter of Credit Commitment" shall mean the obligation of the Issuing
Lender to issue Letters of Credit in an aggregate face amount from time to time
not to exceed $12,500,000 pursuant to the terms of this Agreement.

      "Letter of Credit Obligations" shall mean, at any time, without
duplication, the sum of (a) an amount equal to one hundred percent (100%) of the
aggregate undrawn and unexpired stated amount (including the amount to which any
such Letter of Credit can be reinstated pursuant to its terms) of the then
outstanding Letters of Credit, plus (b) an amount equal to one hundred percent
(100%) of the aggregate drawn, but unreimbursed drawings of any Letters of
Credit.

      "Letter of Credit Reserve Account" shall mean any account maintained by
the Administrative Agent the proceeds of which shall be applied as provided in
Section 9.2(d).

      "Letters of Credit" shall mean either Standby Letters of Credit or
Commercial Letters of Credit issued by the Issuing Lender on behalf of the
Borrower from time to time in accordance with Section 2.15.

      "Lien" shall mean, with respect to any property, any mortgage, lien,
pledge, negative pledge agreement, assignment, charge, option, security
interest, title retention agreement, levy, execution, seizure, attachment,
garnishment, or other encumbrance of any kind in respect of such property,
whether or not choate, vested, or perfected.

      "Loan Account" shall have the meaning specified in Section 2.7(b).

      "Loan Documents" shall mean this Agreement, any Notes, the Security
Documents, the Control Agreements, the Fee Letter, the Guaranty Supplements, the
Management Fees Subordination Agreement, the Intercreditor Agreement, the
Subordination Agreement, all reimbursement agreements relating to Letters of
Credit issued hereunder, all Collateral Access Agreements, all Compliance
Certificates, all Requests for Advance, all Requests for Issuance of Letters of
Credit, all Notices of Conversion/Continuation, all Borrowing Base Certificates
and all other documents, lockbox agreements, instruments, certificates, and
agreements executed or delivered in connection with or contemplated by this
Agreement, including, without limitation, any security agreements or guaranty
agreements from the Borrower's Subsidiaries to the Lender Group, or any of them;
provided, however, that, notwithstanding the foregoing, none of the Hedge
Agreements shall constitute Loan Documents.

                                       14
<PAGE>

      "Loans" shall mean, collectively, the Revolving Loans and the Agent
Advances.

      "Majority Lenders" shall mean, as of any date of calculation, (a) if there
are two (2) or fewer Lenders, ING Capital LLC, and (b) if there are three (3) or
more Lenders, Lenders the sum of whose unutilized Commitments plus Loans (other
than Agent Advances) outstanding plus participation interests in Letter of
Credit Obligations and Agent Advances outstanding on such date of calculation
equals or exceeds fifty-one percent (51%) of the sum of the aggregate unutilized
Commitments plus Loans (other than Agent Advances) outstanding plus
participation interests in Letter of Credit Obligations and Agent Advances
outstanding of all of the Lenders as of such date of calculation.

      "Management Agreements" shall mean, collectively, that certain Amended and
Restated Consulting Services Agreement dated as of the date hereof, among
T-Netix, Evercom Systems, Inc. and H.I.G., and that certain Amended and Restated
Professional Services Agreement dated as of the date hereof, among T-Netix,
Evercom Systems, Inc. and H.I.G., in each case as such document may be amended,
restated, supplemented or modified from time to time as permitted under this
Agreement.

      "Management Fees Subordination Agreement" shall mean that certain
Management Fees Subordination Agreement dated as of the Agreement Date, among
T-Netix, Evercom Systems, Inc., H.I.G. and the Administrative Agent, for the
benefit of the Lender Group, in form and substance satisfactory to the
Administrative Agent.

      "Margin Stock" shall have the meaning specified in Section 5.1(t) hereof.

      "Material Contracts" shall mean, collectively, (a) the contracts with the
Persons listed as the "Top Ten Customers Based on Sales Revenues" of the
Borrower Parties on Schedule 5.1(h), and (b) all other contracts, leases,
instruments, guaranties, licenses or other arrangements (other than the Loan
Documents) to which any Borrower Party or any Subsidiary of a Borrower Party is
or becomes a party as to which the breach, nonperformance, cancellation or
failure to renew by any party thereto would reasonably be expected to have a
Materially Adverse Effect.

      "Materially Adverse Effect" shall mean any materially adverse effect (a)
upon the business, assets, liabilities, condition (financial or otherwise), or
results of operations of the Borrower and its Subsidiaries, taken as a whole, or
(b) upon the ability of any Borrower Party to perform its material obligations
under this Agreement or any other Loan Document to which it is a party, or (c)
upon the rights, benefits or interests of the Administrative Agent, the Lenders
or the Issuing Lender in or to this Agreement, any other Loan Document or the
Collateral.

      "Maturity Date" shall mean September 9, 2009, or such earlier date as
payment of the Loans shall be due pursuant to Section 9.2.

      "Maximum Guaranteed Amount" shall have the meaning specified in Section
3.1(g) hereof.

      "Merger" shall mean the acquisition by the Borrower on the Agreement Date
of the Stock of the Target pursuant to the Merger Agreement.

      "Merger Agreement" shall mean that certain Agreement and Plan of Merger
dated as of July 10, 2004, by and among the Borrower (formerly known as TZ
Holdings, Inc.), New Mustang Acquisition, Inc., the Target and the
Indemnification Representative (as defined therein).

      "Merger Documents" shall mean the Merger Agreement and all other documents
related thereto and executed in connection with the Merger.

                                       15
<PAGE>

      "Moody's" shall mean Moody's Investor Service, Inc., or any successor
thereto.

      "Multiemployer Plan" shall mean a "multiemployer plan" as defined in
Section 4001(a)(3) of ERISA, and to which any Borrower Party or ERISA Affiliate
is making, is obligated to make or has made or been obligated to make, since
January 1, 1998, contributions on behalf of participants who are or were
employed by any of them.

      "Necessary Authorizations" shall mean all material authorizations,
consents, permits, approvals, licenses, and exemptions from, and all filings and
registrations with, and all reports to, any Governmental Authority whether
federal, state, local, and all agencies thereof, which are required for the
transactions contemplated by the Loan Documents, the consummation of the Merger
and the conduct of the businesses and the ownership (or lease) of the properties
and assets of the Borrower Parties.

      "Net Cash Proceeds" shall mean, with respect to any sale, lease, transfer,
casualty loss or other disposition or loss of assets by any Borrower Party or
the incurrence by any Borrower Party of any Funded Debt (other than the
Obligations), the aggregate amount of cash received for such assets, or as a
result of such Funded Debt, net of reasonable and customary transaction costs
properly attributable to such transaction and payable by such Borrower Party to
a non-Affiliate in connection with such sale, lease, transfer or other
disposition of assets or the incurrence of any Funded Debt, including, without
limitation, sales commissions and underwriting discounts.

      "Net Income" shall mean, with respect to any Person for any period, the
consolidated net income (or deficit) of such Person and its Subsidiaries for
such period, determined in accordance with GAAP.

      "Non-Depository Account" shall have the meaning specified in Section
6.15(c) hereof.

      "Note Purchase Agreement" shall mean that certain Note Purchase Agreement
dated as of the Agreement Date by the Borrower and the "Subsidiary Guarantors"
(as defined in the Note Purchase Agreement) to the Subordinated Creditors, as in
effect on the Agreement Date.

      "Notes" shall mean those certain promissory notes issued by the Borrower
to each of the Lenders that requests a promissory note, in accordance with each
such Lender's Commitment Ratio of the Commitment, in substantially in the form
of Exhibit F.

      "Notice of Conversion/Continuation" shall mean a notice in substantially
the form of Exhibit G.

      "Obligations" shall mean (a) all payment and performance obligations as
existing from time to time of the Borrower Parties to the Lender Group, or any
of them, under this Agreement and the other Loan Documents (including all Letter
of Credit Obligations and including any interest, fees and expenses that, but
for the provisions of the Bankruptcy Code, would have accrued), or as a result
of making the Loans or issuing the Letters of Credit, (b) the obligation to pay
an amount equal to the amount of any and all damages which the Lender Group, or
any of them, may suffer by reason of a breach by any Borrower Party of any
obligation, covenant, or undertaking with respect to this Agreement or any other
Loan Document, and (c) any debts, liabilities and obligations as existing from
time to time of any Borrower Party to the Administrative Agent (or an Affiliate
of the Administrative Agent) arising from or in connection with any Hedge
Agreements and, if ING Capital LLC ceases to be the Administrative Agent, any
debts, liabilities and obligations as existing from time to time of any Borrower
Party to ING Capital LLC (or an Affiliate of ING Capital LLC) arising from or in
connection with any Hedge Agreements entered into at a time when ING Capital LLC
was the Administrative Agent.

                                       16
<PAGE>

      "OFAC" shall mean the Office of Foreign Assets Control of the United
States Department of the Treasury.

      "Offering Circular" shall mean the final offering circular dated as of
August 18, 2004, and used in connection with the offering of the Initial
Securities (as defined in the Indenture) issued on the Agreement Date.

      "Other Taxes" shall have the meaning specified in Section 2.8(b)(ii)
hereof.

      "Overadvance" shall have the meaning specified in Section 2.1(c).

      "Participant" shall have the meaning specified in Section 11.5(d).

      "Patent Security Agreements" shall mean, collectively, the Patent Security
Agreements made in favor of the Administrative Agent, on behalf of the Lender
Group, from time to time.

      "Payment Date" shall mean the last day of each Eurodollar Advance Period
for a Eurodollar Advance.

      "PBGC" shall mean the Pension Benefit Guaranty Corporation or any entity
succeeding to any or all of its functions under ERISA.

      "Permitted Holders" shall mean H.I.G., the Affiliates of H.I.G., Richard
Falcone and Richard E. Cree. Except for a Permitted Holder specifically
identified by name, in determining whether Voting Stock is owned by a Permitted
Holder, only Voting Stock acquired by a Permitted Holder in its described
capacity will be treated as "beneficially owned" by such Permitted Holder.

      "Permitted Liens" shall mean, as applied to any Person:

      (a) Any Lien in favor of the Administrative Agent or any other member of
the Lender Group given to secure the Obligations;

      (b) (i) Liens on real estate for real estate taxes not yet delinquent and
(ii) Liens for taxes, assessments, judgments, governmental charges or levies, or
claims not yet delinquent or the non-payment of which is being diligently
contested in good faith by appropriate proceedings and for which adequate
reserves have been set aside on such Person's books;

      (c) Liens of carriers, warehousemen, mechanics, laborers, suppliers,
workers and materialmen incurred in the ordinary course of business for sums not
yet due or being diligently contested in good faith, if such reserve or
appropriate provision, if any, as shall be required by GAAP shall have been made
therefor;

      (d) Liens incurred in the ordinary course of business in connection with
worker's compensation and unemployment insurance or other types of social
security benefits;

      (e) Easements, rights-of-way, restrictions (including zoning or deed
restrictions), and other similar encumbrances on the use of real property which
in the reasonable opinion of the Administrative Agent do not interfere with the
ordinary conduct of the business of such Person;

      (f)Purchase money security interests and Liens securing Capitalized Lease
Obligations, provided that such Lien attaches only to the asset (which asset
shall not constitute Inventory)

                                       17
<PAGE>

so purchased or leased by such Person and secures only Funded Debt incurred by
such Person in order to purchase or lease such asset, but only to the extent
permitted by Section 8.1(f);

      (g)Deposits to secure the performance of bids, trade contracts, tenders,
sales, leases, statutory obligations, surety and appeal bonds, performance bonds
and other obligations of a like nature incurred in the ordinary course of
business;

      (h) Liens on assets of the Borrower and its Subsidiaries existing as of
the Agreement Date (after giving effect to the Merger) which are set forth on
Schedule 1(b);

      (i)Liens on the Collateral constituting personal property (other than any
and all Accounts and Inventory and any and all proceeds thereof) in favor of the
Indenture Trustee securing obligations under the Senior Note Documents, provided
that such Liens are subject to the Intercreditor Agreement at all times; and

      (j) Liens securing Indebtedness in an aggregate amount not in excess of
$1,000,000 at any one time.

      "Person" shall mean an individual, corporation, partnership, trust, joint
stock company, limited liability company, unincorporated organization, other
legal entity or joint venture or a government or any agency or political
subdivision thereof.

      "Plan" shall mean an employee benefit plan within the meaning of Section
3(3) of ERISA subject to Title IV of ERISA that any Borrower Party or ERISA
Affiliate maintains, contributes to or has an obligation to contribute to or has
maintained, contributed to or had an obligation to contribute to at any time
within the past six (6) years on behalf of participants who were employed by any
Borrower Party or ERISA Affiliate.

      "Pledge Agreement" shall mean that certain Pledge Agreement dated as of
the Agreement Date by certain of the Borrower Parties in favor of the
Administrative Agent, for the benefit of the Lender Group, substantially in the
form of Exhibit H, pursuant to which such Borrower Parties have pledged to the
Administrative Agent, for the benefit of the Lender Group, as security for the
Obligations all of the Equity Interests, whether now owned or hereafter acquired
by each of them, in each of their respective Subsidiaries, except as otherwise
described in Section 6.20.

      "Prime Rate" shall mean, at any time, the "prime rate" of interest
reported, from time to time, by The Wall Street Journal; provided, however, that
in the event that The Wall Street Journal ceases reporting a "prime rate",
"Prime Rate" shall mean the per annum rate of interest reported as the "Lender
Prime Loan" rate for the most recent weekday for which such rate is quoted in
Statistical Release H.5 (519) published from time to time by the Board of
Governors of the Federal Reserve System; provided, further that in the event
that both of the aforesaid indices cease to be published or to report rates of
the aforesaid types, the "Prime Rate" shall be determined from a comparable
index chosen by the Administrative Agent in good faith. The "Prime Rate" shall
change effective on the date of publication of any change in the applicable
index by which such "Prime Rate" is determined.

      "Prime Rate Advance" shall mean an Advance which the Borrower requests to
be made as a Prime Rate Advance or which is converted to a Prime Rate Advance,
in accordance with the provisions of Section 2.2.

      "Pro Forma Basis" shall mean for purposes of determining compliance with
the Financial Covenants and the defined terms relating thereto, giving pro forma
effect to any acquisition or sale of a

                                       18
<PAGE>

Person, all or substantially all of the business or assets of a Person, and any
related incurrence, repayment or refinancing of Funded Debt, Capital
Expenditures or other related transactions which would otherwise be accounted
for as an adjustment permitted by GAAP or as calculated in the definition of
EBITDA, in each case, as if such acquisition or sale and related transactions
were realized on the first day of the relevant period; provided that the pro
forma adjustments listed on Schedule 1(c) hereto shall be permitted in any
event.

      "Property" shall mean any real property or personal property, plant,
building, facility, structure, underground storage tank or unit, equipment,
Inventory or other asset owned, leased or operated by the Borrower Parties,
their Subsidiaries or any of them (including, without limitation, any surface
water thereon or adjacent thereto, and soil and groundwater thereunder).

      "Register" shall have the meaning specified in Section 11.5(c).

      "Reimbursement Obligations" shall mean the payment obligations of the
Borrower under Section 2.15(d).

      "Replacement Event" shall have the meaning specified in Section 11.16.

      "Replacement Lender" shall have the meaning specified in Section 11.16.

      "Request for Advance" shall mean any certificate signed by an Authorized
Signatory of the Borrower requesting a new Advance hereunder, which certificate
shall be denominated a "Request for Advance," and shall be in substantially the
form of Exhibit I. Each Request for Advance shall, among other things, specify
the date of the Advance, which shall be a Business Day, the amount of the
Advance, and the type of Advance.

      "Request for Issuance of Letter of Credit" shall mean any certificate
signed by an Authorized Signatory of the Borrower requesting that the Issuing
Lender issue a Letter of Credit hereunder, which certificate shall be in
substantially the form of Exhibit J, and shall, among other things, (a) specify
that the requested Letter of Credit is either a Commercial Letter of Credit or a
Standby Letter of Credit, (b) the stated amount of the Letter of Credit (which
shall be in Dollars), (c) the effective date (which shall be a Business Day) for
the issuance of such Letter of Credit, (d) the date on which such Letter of
Credit is to expire (which shall be a Business Day and which shall be subject to
Section 2.15(a)), (e) the Person for whose benefit such Letter of Credit is to
be issued, (f) other relevant terms of such Letter of Credit, and (g) the
Available Letter of Credit Amount as of the scheduled date of issuance of such
Letter of Credit.

      "Reserves" shall mean the following Borrowing Base reserves: (a) reserves
for three (3) months' rent at each leased location where Inventory that is
included in the Borrowing Base is located unless a Collateral Access Agreement
with respect to such location has been delivered to the Administrative Agent;
(b) reserves for warehousemen's or bailees' charges at each location where
Inventory that is included in the Borrowing Base is located unless a Collateral
Access Agreement with respect to such location has been delivered to the
Administrative Agent; (c) the Bad Debt Reserve; and (d) the Inventory Reserve.

      "Restricted Payment" shall mean (a) Dividends, (b) any payment of
management, consulting or similar fees payable by any Borrower Party or any
Subsidiary of a Borrower Party to any Affiliate, and (c) any payment of
principal, interest or any other obligation on account of any Funded Debt
incurred under the Subordinated Note Documents.

                                       19

<PAGE>

      "Restricted Purchase" shall mean any payment on account of the purchase,
redemption, or other acquisition or retirement of any shares of Equity Interests
of any Borrower Party.

      "Retiree Welfare Plan" shall mean a Plan that is an "employee welfare
benefit plan" within the meaning of Section 3(1) of ERISA that provides for
continuing coverage or benefits for any participant or any beneficiary of a
participant after such participant's termination of employment, other than
continuation coverage provided pursuant to Code Section 4980B and at the sole
expense of the participant or the beneficiary.

      "Revolving Loans" shall mean, collectively, the amounts (other than Agent
Advances) advanced from time to time by the Lenders to the Borrower under the
Commitment, not to exceed the amount of the Commitment.

      "S&P" shall mean Standard & Poor's Ratings Group, a division of
McGraw-Hill, Inc., or any successor thereto.

      "SEA" shall mean the Securities and Exchange Act of 1934 and the rules
promulgated thereunder by the Securities and Exchange Commission, as amended
from time to time or any similar Federal law then in force.

      "Securities Act" shall mean the Securities Act of 1933, as amended, or any
similar Federal law then in force.

      "Security Agreement" shall mean that certain Security Agreement dated as
of the Agreement Date among the Borrower Parties and the Administrative Agent,
on behalf of, and for the benefit of, the Lender Group, substantially in the
form of Exhibit K.

      "Security Documents" shall mean, collectively, the Copyright Security
Agreements, the Patent Security Agreements, the Pledge Agreement, the Security
Agreement, the Trademark Security Agreements, all UCC-1 financing statements and
any other document, instrument or agreement granting Collateral for the
Obligations, as the same may be amended or modified from time to time.

      "Senior Note Documents" shall mean the Indenture, the Securities (as
defined in the Indenture), the Security Documents (as defined in the Indenture,
but excluding the Intercreditor Agreement) and any other documents, agreements
and instruments executed in connection with any of the foregoing, in each case
as such document may be amended, restated, supplemented or modified from time to
time as permitted under this Agreement.

      "Standby Letter of Credit" shall mean a Letter of Credit issued to support
obligations of the Borrower incurred in the ordinary course of its business, and
which is not a Commercial Letter of Credit.

      "Subordinated Creditors" shall mean, collectively, Laminar Direct Capital,
L.P. and any other Person party to the Subordination Agreement as a Subordinated
Creditor (as defined in the Subordination Agreement).

      "Subordinated Note Documents" shall mean the Note Purchase Agreement, the
Notes (as defined in the Note Purchase Agreement), that certain Warrant issued
by the Borrower to Laminar Direct Capital, L.P. on the Agreement Date, that
certain Investor Rights Agreement dated as of the Agreement Date between the
Borrower and Laminar Direct Capital, L.P. and any other documents, agreements
and instruments executed in connection with any of the foregoing, in each case
as such document may be amended, restated, supplemented or modified from time to
time as permitted under this Agreement.

                                       20

<PAGE>

      "Subordination Agreement" means that certain Subordination and
Intercreditor Agreement between the Administrative Agent and the Subordinated
Creditors, dated as of the date hereof, in form and substance satisfactory to
the Administrative Agent.

      "Subsidiary" shall mean, as applied to any Person, any corporation of
which more than fifty percent (50%) of the outstanding stock (other than
directors' qualifying shares) having ordinary voting power to elect a majority
of its board of directors, regardless of the existence at the time of a right of
the holders of any class or classes of securities of such corporation to
exercise such voting power by reason of the happening of any contingency, or any
partnership or limited liability company of which more than fifty percent (50%)
of the outstanding partnership interests or membership interests, as the case
may be, is at the time owned by such Person, or by one or more Subsidiaries of
such Person, or by such Person and one or more Subsidiaries of such Person.

      "Subsidiary Guarantors" shall mean all Subsidiaries of the Borrower
signatory to this Agreement as a "Guarantor" and all Subsidiaries of the
Borrower that have executed and delivered a Guaranty Supplement.

      "T-Netix" shall mean T-Netix, Inc., a Delaware corporation.

      "T-Netix Consolidation" shall mean the merger of TZ Acquisition, Inc., a
Delaware corporation, with and into T-Netix pursuant to the terms of that
certain Agreement and Plan of Merger dated as of January 22, 2004, among the
Borrower (formerly known as TZ Holdings, Inc.), TZ Acquisition, Inc. and
T-Netix, which resulted in T-Netix being the surviving entity and a wholly-owned
Subsidiary of the Borrower.

      "Target" shall have the meaning specified in the recitals of this
Agreement.

      "Taxes" shall have the meaning specified in Section 2.8(b)(i) hereof.

      "Tender Offer" shall mean the offer made to the shareholders of T-Netix by
TZ Acquisition, Inc. to purchase the Equity Interests of T-Netix for $4.60 per
share, as more fully described in the Schedule TO filed by TZ Acquisition, Inc.
with the Securities and Exchange Commission.

      "Title IV Plan" shall mean a Plan that is an "employee pension benefit
plan," within the meaning of Section 3(2) of ERISA, that is covered by Title IV
of ERISA.

      "Trademark Security Agreements" shall mean, collectively, the Trademark
Security Agreements made in favor of the Administrative Agent, on behalf of the
Lender Group, from time to time.

      "UCC" shall mean the Uniform Commercial Code as the same may, from time to
time, be enacted and in effect in the State of New York; provided, that to the
extent that the UCC is used to define any term herein and such term is defined
differently in different Articles or Divisions of the UCC, the definition of
such term contained in Article or Division 9 shall govern; provided further,
that in the event that, by reason of mandatory provisions of law, any or all of
the attachment, perfection or priority of, or remedies with respect to, the
Administrative Agent's Lien on any Collateral is governed by the Uniform
Commercial Code as enacted and in effect in a jurisdiction other than the State
of New York, the term "UCC" shall mean the Uniform Commercial Code as enacted
and in effect in such other jurisdiction solely for purposes of the provisions
thereof relating to such attachment, perfection, priority or remedies and for
purposes of definitions related to such provisions.

                                       21

<PAGE>

      "Unfunded Pension Liability" shall mean at any time, the aggregate amount,
if any, of the sum of (a) the amount by which the present value of all accrued
benefits under each Title IV Plan exceeds the fair market value of all assets of
such Title IV Plan allocable to such benefits in accordance with Title IV of
ERISA, all determined as of the most recent valuation date for each such Title
IV Plan using the actuarial assumptions for funding purposes in effect under
such Title IV Plan, and (b) for a period of five (5) years following a
transaction which might reasonably be expected to be covered by Section 4069 of
ERISA, the liabilities (whether or not accrued) that could be avoided by any
Borrower Party or any ERISA Affiliate as a result of such transaction.

      "Uniform Customs" shall mean the Uniform Customs and Practice for
Documentary Credits (1993 Revision), International Chamber of Commerce
Publication No. 500, as the same may be amended from time to time.

      "US" or "United States" shall mean the United States of America.

      "USA Patriot Act" shall mean the Uniting and Strengthening America by
Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA
PATRIOT ACT) Act of 2001, Pub. L. No. 107-56, 115 Stat. 272 (2001), as the same
has been, or shall hereafter be, renewed, extended, amended or replaced.

      "Value" shall mean, at any particular date, with respect to any item of
Inventory: (a) the lower of the fair market value of the Inventory and its cost,
valued in accordance with the "First-In, First-Out" method of accounting, minus
(b) an amount which is equal to the amount of reserves which, under FASB No. 48,
"Revenue recognition when the right of return exists," the Borrower shall be
required to take in regard to the amount identified in clause (a) of this
definition.

      "Voting Stock", of a Person, shall mean all classes of Equity Interests of
such Person then outstanding and normally entitled (without regard to the
occurrence of any contingency) to vote in the election of directors, managers or
trustees thereof.

      "Voidable Transfer" shall have the meaning specified in Section 11.18.

      Section 1.2 Accounting Principles. The classification, character and
amount of all assets, liabilities, capital accounts and reserves and of all
items of income and expense to be determined, and any consolidation or other
accounting computation to be made, and the interpretation of any definition
containing any financial term, pursuant to this Agreement shall be determined
and made in accordance with GAAP consistently applied, unless such principles
are inconsistent with the express requirements of this Agreement. All accounting
terms used herein without definition shall be used as defined under GAAP. All
financial calculations hereunder shall, unless otherwise stated, be determined
for the Borrower on a consolidated basis with its Subsidiaries.

      Section 1.3 Other Interpretive Matters. Except as expressly provided to
the contrary, each definition of an agreement in this Article 1 shall include
such instrument or agreement as amended, restated, supplemented or otherwise
modified from time to time with, if required, the prior written consent of the
Majority Lenders, except as provided in Section 11.12 and otherwise to the
extent permitted under this Agreement and the other Loan Documents. Except where
the context otherwise requires, definitions imparting the singular shall include
the plural and vice versa. Except where otherwise specifically provided herein,
each reference to a "Section", "Article", "Exhibit" or "Schedule" shall be to a
Section or Article of this Agreement or an Exhibit or Schedule attached to this
Agreement. Except where otherwise specifically restricted, reference to a party
to a Loan Document includes that party and its successors and assigns. An Event
of Default, if one occurs, shall "exist", "continue" or be "continuing" until
such Event

                                       22

<PAGE>

of Default has been waived in writing in accordance with Section 11.12. All
terms used herein which are defined in Article 9 of the UCC and which are not
otherwise defined herein shall have the same meanings herein as set forth
therein.

                                   ARTICLE 2.

                       THE LOANS AND THE LETTERS OF CREDIT

      Section 2.1 Extension of Credit. Subject to the terms and conditions of,
and in reliance upon the representations and warranties made in, this Agreement
and the other Loan Documents, the Lenders agree, severally in accordance with
their respective Commitment Ratios, and not jointly, to extend credit to the
Borrower in an aggregate principal amount not to exceed Thirty Million Dollars
($30,000,000).

      (a) The Loans. Each Lender agrees, severally in accordance with its
Commitment Ratio and not jointly with the other Lenders, upon the terms and
subject to the conditions of this Agreement, to lend and relend to the Borrower,
from time to time on any Business Day prior to the Maturity Date, amounts which
do not exceed such Lender's ratable share (based upon such Lender's Commitment
Ratio) of Availability as of such Business Day. Subject to the terms and
conditions hereof and prior to the Maturity Date, Advances under the Commitment
may be repaid and reborrowed from time to time on a revolving basis.

      (b) The Letters of Credit. Subject to the terms and conditions of this
Agreement, the Issuing Lender agrees to issue Letters of Credit for the account
of the Borrower, from time to time on any Business Day prior to the date thirty
(30) days prior to the Maturity Date, pursuant to Section 2.15 in an outstanding
face amount not to exceed, with respect to the issuance of any individual Letter
of Credit as of any Business Day, the Available Letter of Credit Amount as of
such Business Day.

      (c) Overadvances; Optional Overadvances. If at any time the amount of the
Aggregate Revolving Credit Obligations exceeds the Commitment, the Borrowing
Base or any other applicable limitation set forth in this Agreement (including,
without limitation, the limitations on Agent Advances and Letters of Credit)
such excess (an "Overadvance") shall nevertheless constitute a portion of the
Obligations that are secured by the Collateral and are entitled to all benefits
thereof. In no event, however, shall the Borrower have any right whatsoever to
(i) receive any Revolving Loan or (ii) request the issuance of any Letter of
Credit if, before or after giving effect thereto, there shall exist a Default.
In the event that (1) the Lenders shall make any Revolving Loans, (2) the
Administrative Agent shall make any Agent Advances or (3) the Issuing Lender
shall agree to the issuance of any Letter of Credit, which in any such case
gives rise to an Overadvance, the Borrower shall make, on demand, a payment on
the Obligations to be applied to the Revolving Loans, the Agent Advances and the
Letter of Credit Reserve Account, as appropriate, in an aggregate principal
amount equal to such Overadvance.

      (d) Agent Advances.

                  (i) Subject to the limitations set forth below and
notwithstanding anything else in this Agreement to the contrary, the
Administrative Agent is authorized by the Borrower and the Lenders, from time to
time in the Administrative Agent's sole discretion, (A) at any time that a
Default exists, or (B) at any time that any of the other conditions precedent
set forth in Article 4 have not been satisfied, to make Prime Rate Advances to
the Borrower on behalf of the Lenders in an aggregate amount outstanding at any
time not to exceed (together with all other Aggregate Revolving Credit
Obligations) the lesser of (x) the Commitment and (y) $1,000,000 in excess of
the Borrowing Base, which the Administrative Agent, in its reasonable business
judgment, deems necessary or desirable (1) to preserve

                                       23

<PAGE>

or protect the Collateral, or any portion thereof, (2) to enhance the likelihood
of, or maximize the amount of, repayment of the Loans and other Obligations, or
(3) to pay any other amount chargeable to the Borrower pursuant to the terms of
this Agreement, including costs, fees and expenses as provided under this
Agreement (any of such advances are herein referred to as "Agent Advances");
provided, that the Majority Lenders may at any time revoke the Administrative
Agent's authorization to make Agent Advances. Any such revocation must be in
writing and shall become effective prospectively upon the Administrative Agent's
receipt thereof. The Administrative Agent shall promptly provide to the Borrower
written notice of any Agent Advance.

                  (ii) The Agent Advances shall be secured by the Collateral and
shall constitute Obligations hereunder. Each Agent Advance shall bear interest
as a Prime Rate Advance. Each Agent Advance shall be subject to all terms and
conditions of this Agreement and the other Loan Documents applicable to
Revolving Loans, except that all payments thereon shall be made to the
Administrative Agent solely for its own account. The Administrative Agent shall
have no duty or obligation to make any Agent Advance hereunder.

                  (iii) The Administrative Agent shall notify each Lender no
less frequently than weekly, as determined by the Administrative Agent, of the
principal amount of Agent Advances outstanding as of 12:00 noon (Atlanta,
Georgia time) as of such date, and each Lender's pro rata share thereof. Each
Lender shall before 2:00 p.m. (Atlanta, Georgia time) on such Business Day make
available to the Administrative Agent, in immediately available funds, the
amount of its pro rata share of such principal amount of Agent Advances
outstanding. Upon such payment by a Lender, such Lender shall be deemed to have
made a Revolving Loan to the Borrower, notwithstanding any failure of the
Borrower to satisfy the conditions in Section 4.2. The Administrative Agent
shall use such funds to repay the principal amount of Agent Advances.
Additionally, if at any time any Agent Advances are outstanding, any of the
events described in clauses (g) or (h) of Section 9.1 shall have occurred, then
each Lender shall automatically, upon the occurrence of such event, and without
any action on the part of the Administrative Agent, the Borrower or the Lenders,
be deemed to have purchased an undivided participation in the principal and
interest of all Agent Advances then outstanding in an amount equal to such
Lender's Commitment Ratio and each Lender shall, notwithstanding such Event of
Default, immediately pay to the Administrative Agent in immediately available
funds, the amount of such Lender's participation (and upon receipt thereof, the
Administrative Agent shall deliver to such Lender, a loan participation
certificate dated the date of receipt of such funds in such amount). The
disbursement of funds in connection with the settlement of Agent Advances
hereunder shall be subject to the terms and conditions of Section 2.2(f).

      Section 2.2 Manner of Borrowing and Disbursement of Loans.

      (a) Choice of Interest Rate, etc. Any Advance shall, at the option of the
Borrower, be made either as a Prime Rate Advance or as a Eurodollar Advance
(except for the first three (3) Business Days after the Agreement Date, during
which period the Loans shall bear interest as a Prime Rate Advance); provided,
however, that (i) if the Borrower fails to give the Administrative Agent written
notice specifying whether a Eurodollar Advance is to be repaid, continued or
converted on a Payment Date, such Advance shall be converted to a Prime Rate
Advance on the Payment Date in accordance with Section 2.3(a)(iii), (ii) the
Borrower may not select a Eurodollar Advance (A) with respect to an Advance, the
proceeds of which are to reimburse the Issuing Lender pursuant to Section 2.15,
or (B) if, at the time of such Advance or at the time of the continuation of, or
conversion to, a Eurodollar Advance pursuant to Section 2.2(c), a Default exists
and (iii) all Agent Advances shall be made as Prime Rate Advances. Any notice
given to the Administrative Agent in connection with a requested Advance
hereunder shall be given to the Administrative Agent prior to 1:00 p.m.
(Atlanta, Georgia time) in order for such Business Day to count toward the
minimum number of Business Days required.

                                       24

<PAGE>

      (b) Prime Rate Advances.

                  (i) Initial and Subsequent Advances. The Borrower shall give
the Administrative Agent in the case of Prime Rate Advances irrevocable notice
by telephone not later than 1:00 p.m. (Atlanta, Georgia time) on the date of
such Prime Rate Advance and shall promptly confirm any such telephone notice
with a written Request for Advance; provided, however, that the failure by the
Borrower to confirm any notice by telephone with a written Request for Advance
shall not invalidate any notice so given. Each Prime Rate Advance shall be in a
principal amount of no less than $250,000 and in an integral multiple of $50,000
in excess thereof.

                  (ii) Repayments and Conversions. The Borrower may (A) subject
to Section 2.5, at any time without prior notice repay a Prime Rate Advance, or
(B) upon at least three (3) Business Days' irrevocable prior written notice to
the Administrative Agent in the form of a Notice of Conversion/Continuation,
convert all or a portion of the principal thereof to one or more Eurodollar
Advances. Upon the date indicated by the Borrower, such Prime Rate Advance shall
be so repaid or converted.

      (c) Eurodollar Advances.

                  (i) Initial and Subsequent Advances. The Borrower shall give
the Administrative Agent in the case of Eurodollar Advances irrevocable notice
by telephone not later than 1:00 p.m. (Atlanta, Georgia time) three (3) days
prior to the date of such Eurodollar Advance and shall promptly confirm any such
telephone notice with a written Request for Advance; provided, however, that the
failure by the Borrower to confirm any notice by telephone with a written
Request for Advance shall not invalidate any notice so given.

                  (ii) Repayments, Continuations and Conversions. At least three
(3) Business Days prior to each Payment Date for a Eurodollar Advance, the
Borrower shall give the Administrative Agent written notice in the form of a
Notice of Conversion/Continuation specifying whether all or a portion of such
Eurodollar Advance outstanding on such Payment Date is to be continued in whole
or in part as one or more new Eurodollar Advances and also specifying the new
Eurodollar Advance Period applicable to each such new Eurodollar Advance (and
subject to the provisions of this Agreement, upon such Payment Date, such
Eurodollar Advance shall be so continued). Upon such Payment Date, any
Eurodollar Advance (or portion thereof) not so continued shall be converted to a
Prime Rate Advance or, subject to Section 2.5, be repaid.

                  (iii) Miscellaneous. Notwithstanding any term or provision of
this Agreement which may be construed to the contrary, each Eurodollar Advance
shall be in a principal amount of no less than $500,000 and in an integral
multiple of $100,000 in excess thereof, and at no time shall the aggregate
number of all Eurodollar Advances then outstanding exceed eight (8).

      (d) Notification of Lenders. Upon receipt of a (i) Request for Advance or
a telephone or telecopy request for Advance, (ii) notification from the Issuing
Lender that a draw has been made under any Letter of Credit, or (iii) notice
from the Borrower with respect to the prepayment of any outstanding Eurodollar
Advance prior to the Payment Date for such Advance, the Administrative Agent
shall promptly notify each Lender by telephone or telecopy of the contents
thereof and the amount of each Lender's portion of any such Advance. Each Lender
shall, not later than 2:00 p.m. (Atlanta, Georgia time) on the date specified
for such Advance (under clause (i) or (ii) above) in such notice, make available
to the Administrative Agent at the Administrative Agent's Office, or at such
account as the Administrative Agent shall designate, the amount of such Lender's
portion of the Advance in immediately available funds.

                                       25

<PAGE>

      (e) Disbursement. Prior to 3:00 p.m. (Atlanta, Georgia time) on the date
of an Advance hereunder, the Administrative Agent shall, subject to the
satisfaction of the conditions set forth in Article 4, disburse the amounts made
available to the Administrative Agent by the Lenders in like funds by (i)
transferring the amounts so made available by wire transfer to the Borrower's
Disbursement Account or (ii) in the case of an Advance the proceeds of which are
to reimburse the Issuing Lender pursuant to Section 2.15, transferring such
amounts to such Issuing Lender. Unless the Administrative Agent shall have
received notice from a Lender prior to 1:00 p.m. (Atlanta, Georgia time) on the
date of any Advance that such Lender will not make available to the
Administrative Agent such Lender's ratable portion of such Advance, the
Administrative Agent may assume that such Lender has made or will make such
portion available to the Administrative Agent on the date of such Advance and
the Administrative Agent may, in its sole discretion and in reliance upon such
assumption, make available to the Borrower or the Issuing Lender, as applicable,
on such date a corresponding amount. If and to the extent such Lender shall not
have so made such ratable portion available to the Administrative Agent, such
Lender agrees to repay to the Administrative Agent forthwith on demand such
corresponding amount together with interest thereon, for each day from the date
such amount is made available to the Borrower or the Issuing Lender, as
applicable, until the date such amount is repaid to the Administrative Agent,
(x) for the first two (2) Business Days, at the Federal Funds Rate for such
Business Days, and (y) thereafter, at the Prime Rate. If such Lender shall repay
to the Administrative Agent such corresponding amount, such amount so repaid
shall constitute such Lender's portion of the applicable Advance for purposes of
this Agreement and if both such Lender and the Borrower shall pay and repay such
corresponding amount, the Administrative Agent shall promptly relend to the
Borrower such corresponding amount. If such Lender does not repay such
corresponding amount immediately upon the Administrative Agent's demand
therefor, the Administrative Agent shall notify the Borrower and the Borrower
shall immediately pay such corresponding amount to the Administrative Agent. The
failure of any Lender to fund its portion of any Advance shall not relieve any
other Lender of its obligation, if any, hereunder to fund its respective portion
of the Advance on the date of such borrowing, but no Lender shall be responsible
for any such failure of any other Lender. In the event that a Lender for any
reason fails or refuses to fund its portion of an Advance in violation of this
Agreement, then, until such time as such Lender has funded its portion of such
Advance, or all other Lenders have received payment in full (whether by
repayment or prepayment) of the principal and interest due in respect of such
Advance, such non-funding Lender shall not (i) have the right to vote regarding
any issue on which voting is required or advisable under this Agreement or any
other Loan Document and, with respect to any such Lender, the amount of the
Commitments or Loans, as applicable, held by such Lender shall not be counted as
outstanding for purposes of determining "Majority Lenders" hereunder, and (ii)
be entitled to receive any payments of principal, interest or fees from the
Borrower or the Administrative Agent (or the other Lenders) in respect of its
Loans.

      (f) Deemed Requests for Advance. Unless payment is otherwise timely made
by the Borrower, the becoming due of any amount required to be paid under this
Agreement or any of the other Loan Documents as principal, interest,
reimbursement obligations in connection with Letters of Credit, premiums, fees,
reimbursable expenses or other sums payable hereunder shall be deemed
irrevocably to be a Request for Advance on the due date of, and in an aggregate
amount required to pay, such principal, interest, reimbursement obligations in
connection with Letters of Credit, premiums, fees, reimbursable expenses or
other sums payable hereunder, and the proceeds of a Revolving Loan made pursuant
thereto may be disbursed by way of direct payment of the relevant Obligation and
shall bear interest as a Prime Rate Advance. The Lenders shall have no
obligation to the Borrower to honor any deemed Request for Advance under this
Section 2.2(f) unless all the conditions set forth in Section 4.2 have been
satisfied, but, with the consent of the Lenders required under the last sentence
of Section 4.2, may do so in their sole discretion and without regard to the
existence of, and without being deemed to have waived, any Default and without
regard to the existence or creation of an Overadvance or the failure by the
Borrower to satisfy any of the conditions set forth in Section 4.2. No further
authorization, direction or approval by the Borrower shall be required to be
given by the Borrower for any deemed Request for Advance under

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this Section 2.2(f). The Administrative Agent shall promptly provide to the
Borrower written notice of any Advance pursuant to this Section 2.2(f).

      Section 2.3 Interest.

      (a) On Loans. Interest on the Loans, subject to Sections 2.3(b) and (c),
shall be payable as follows:

                  (i) On Prime Rate Advances. Interest on each Prime Rate
Advance shall be computed for the actual number of days elapsed on the basis of
a hypothetical year of three hundred sixty-five (365) days and shall be payable
quarterly in arrears on the first day of each calendar quarter for the prior
calendar quarter, commencing on October 1, 2004. Interest on Prime Rate Advances
then outstanding shall also be due and payable on the Maturity Date (or the date
of any earlier prepayment in full of the Obligations). Interest shall accrue and
be payable on each Prime Rate Advance at the simple per annum interest rate
equal to the Prime Rate.

                  (ii) On Eurodollar Advances. Interest on each Eurodollar
Advance shall be computed for the actual number of days elapsed on the basis of
a hypothetical year of three hundred sixty (360) days and shall be payable in
arrears on (x) the Payment Date for such Advance, and (y) if the Eurodollar
Advance Period for such Advance is greater than three (3) months, on each three
month anniversary of such Advance. Interest on Eurodollar Advances then
outstanding shall also be due and payable on the Maturity Date (or the date of
any earlier prepayment in full of the Obligations). Interest shall accrue and be
payable on each Eurodollar Advance at a rate per annum equal to the sum of (A)
the Eurodollar Basis applicable to such Eurodollar Advance, and (B) the Interest
Rate Margin.

                  (iii) If No Notice of Selection of Interest Rate. If the
Borrower fails to give the Administrative Agent timely notice of its selection
of a Eurodollar Basis, or if for any reason a determination of a Eurodollar
Basis for any Advance is not timely concluded, the Prime Rate shall apply to
such Advance. If the Borrower fails to elect to continue any Eurodollar Advance
then outstanding prior to the last Payment Date applicable thereto in accordance
with the provisions of Section 2.2, as applicable, the Prime Rate shall apply to
such Advance commencing on and after such Payment Date.

      (b) Upon Default. Immediately upon the occurrence of an Event of Default
specified in Sections 9.1(b), 9.1(g) or 9.1(h) that has not been waived in
writing, and, at the option of the Administrative Agent or the Majority Lenders,
upon the occurrence of an Event of Default other than an Event of Default
specified in Sections 9.1(b), 9.1(g) or 9.1(h) that has not been waived in
writing, interest on the outstanding Obligations shall accrue at the Default
Rate. Interest accruing at the Default Rate shall be payable on demand and in
any event on the Maturity Date (or the date of any earlier prepayment in full of
the Obligations) and shall accrue until the earliest to occur of (i) waiver of
the applicable Event of Default in accordance with Section 11.12, (ii) agreement
by the Majority Lenders to rescind the charging of interest at the Default Rate,
or (iii) payment in full of the Obligations. The Lenders shall not be required
to (A) accelerate the maturity of the Loans, (B) terminate the Commitments, or
(C) exercise any other rights or remedies under the Loan Documents in order to
charge interest hereunder at the Default Rate.

      (c) Computation of Interest. In computing interest on any Advance, the
date of making the Advance shall be included and the date of payment shall be
excluded; provided, however, that if an Advance is repaid on the date that it is
made, one (1) day's interest shall be due with respect to such Advance.

      Section 2.4 Fees.

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<PAGE>

      (a) Fee Letter. The Borrower agrees to pay to the Administrative Agent
such fees as are set forth in the Fee Letter.

      (b) Unused Line Fee. The Borrower agrees to pay to the Administrative
Agent, for the account of the Lenders in accordance with their respective
Commitment Ratios, an unused line fee on the aggregate amount by which the
Commitment exceeded the sum of the average daily amount of Aggregate Revolving
Credit Obligations (other than with respect to any Agent Advances) for each day
from the Agreement Date through the Maturity Date (or the date of any earlier
prepayment in full of the Obligations), at a rate of one-half of one percent
(.50%) per annum. Such unused line fee shall be computed on the annual basis of
a hypothetical year of three hundred sixty (360) days for the actual number of
days elapsed, shall be payable in arrears on October 5, 2004, for the
immediately preceding calendar quarter and thereafter shall be payable quarterly
in arrears on the fifth day of each calendar quarter thereafter for the
immediately preceding calendar quarter, and if then unpaid, on the Maturity Date
(or the date of any earlier prepayment in full of the Obligations), and shall be
fully earned when due and non-refundable when paid.

      (c) Letter of Credit Fees.

                  (i) The Borrower shall pay to the Administrative Agent for the
account of the Lenders, in accordance with their respective Commitment Ratios, a
fee on the stated amount of any outstanding Letters of Credit for each day from
the Date of Issue through the Maturity Date (or the date of any earlier
prepayment in full of the Obligations) at a rate per annum on the amount of the
Letter of Credit Obligations equal to two and one-half percent (2.50%). Such
Letter of Credit fee shall be computed on the basis of a hypothetical year of
three hundred sixty (360) days for the actual number of days elapsed, shall be
payable quarterly in arrears for each calendar quarter on the fifth day of the
immediately succeeding calendar quarter, commencing on October 5, 2004, and if
then unpaid, on the Maturity Date (or the date of any earlier prepayment in full
of the Obligations), and shall be fully earned when due and non-refundable when
paid.

                  (ii) The Borrower shall also pay to the Administrative Agent,
for the account of the Issuing Lender, (A) a fee on the stated amount of each
Letter of Credit for each day from the Date of Issue through the expiration date
of each such Letter of Credit (or any earlier prepayment in full of the
Obligations) at a rate of one-eighth of one-percent (0.125%) per annum which fee
shall be computed on the basis of a hypothetical year of three hundred sixty
(360) days for the actual number of days elapsed, shall be payable quarterly in
arrears on the first day of each calendar quarter for the immediately preceding
calendar quarter, commencing on October 1, 2004, and, if unpaid on the Maturity
Date (or any earlier prepayment in full of the Obligations) and (B) any
reasonable and customary fees charged by the Issuing Lender for issuance and
administration of such Letters of Credit. The foregoing fees shall be fully
earned when due, and non-refundable when paid.

      (d) Computation of Fees. In computing any fees payable under this Section
2.4, the first day of the applicable period shall be included and the date of
the payment shall be excluded.

      Section 2.5 Prepayment/Reduction of Commitment.

      (a) The principal amount of any Prime Rate Advance may be repaid in full
or in part at any time, without penalty or prior notice; and the principal
amount of any Eurodollar Advance may be prepaid prior to the applicable Payment
Date, upon three (3) Business Days' prior written notice to the Administrative
Agent, provided that the Borrower shall reimburse the Lenders and the
Administrative Agent, on the earlier of demand or the Maturity Date, for any
loss or reasonable out-of-pocket expense incurred by the Lenders or the
Administrative Agent in connection with such prepayment of such

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<PAGE>

Eurodollar Advance, as set forth in Section 2.9. Each notice of prepayment of
any Eurodollar Advance shall be irrevocable, and each prepayment or repayment
made under this Section 2.5(a) shall include the accrued interest on the amount
so prepaid or repaid. Upon receipt of any notice of repayment or prepayment, the
Administrative Agent shall promptly notify each Lender of the contents thereof
by telephone or telecopy and of such Lender's portion of the repayment or
prepayment. Notwithstanding the foregoing, the Borrower shall not make any
repayment or prepayment of the Revolving Loans unless and until the balance of
the Agent Advances then outstanding is zero. Other than with respect to amounts
required to be applied to the Loans pursuant to the last sentence of Section
2.6(a) or pursuant to Section 2.6(c), repayments or prepayments of principal
hereunder shall be in minimum amounts of $250,000 and integral multiples of
$50,000 in excess thereof. Except as provided in Section 2.5(b), any repayment
and prepayment of Advances outstanding under the Commitment shall not reduce the
Commitment. Any prepayment of the Loans shall not affect the Borrower's
obligation to continue to make payments under any swap agreement (as defined in
11 U.S.C. ss.101), including, without limitation, any such swap agreement that
is a Hedge Agreement, which shall remain in full force and effect
notwithstanding such prepayment, subject to the terms of the applicable swap
agreement.

      (b) The Borrower shall have the right, at any time and from time to time
after the Agreement Date and prior to the Maturity Date, upon at least ten (10)
Business Days' prior written notice to the Administrative Agent, without premium
or penalty, to cancel or reduce permanently all or a portion of the Commitment
on a pro rata basis among the Lenders in accordance with their respective
Commitment Ratios; provided, that (i) any such partial reduction shall be made
in an amount not less than $500,000 and in integral multiples of $100,000 in
excess thereof and (ii) the Commitment may not be reduced to an amount below the
then outstanding Letter of Credit Obligations. As of the date of cancellation or
reduction set forth in such notice, the Commitment shall be permanently canceled
or reduced to the amount stated in the Borrower's notice for all purposes
herein, and the Borrower shall pay to the Administrative Agent for the account
of the Lenders the amount necessary to repay in full the principal amount of the
Revolving Loans and Agent Advances or reduce the principal amount of the
Revolving Loans and Agent Advances then outstanding to not more than the amount
of the Commitment as so reduced, together with accrued interest on the amount so
prepaid and the unused line fee set forth in Section 2.4(b) accrued through the
date of the reduction with respect to the amount reduced, and shall reimburse
the Administrative Agent and the Lenders for any loss or out-of-pocket expense
incurred by any of them in connection with such payment as set forth in Section
2.9 and, in the case of cancellation of the Commitment, shall secure the Letter
of Credit Obligations through the delivery of cash collateral in an amount equal
to 105% of the Letters of Credit Obligations.

      Section 2.6 Repayment.

      (a) The Revolving Loans. All unpaid principal and accrued interest on the
Revolving Loans shall be due and payable in full on the Maturity Date.
Notwithstanding the foregoing, however, in the event that at any time and for
any reason there shall exist an Overadvance, the Borrower shall pay to the
Administrative Agent, on demand, an amount equal to the Overadvance, which
payment shall constitute a mandatory payment of the Revolving Loans, Agent
Advances and Letter of Credit Reserve Account, as appropriate.

      (b) Other Mandatory Repayments. All Net Cash Proceeds from the sale or
other disposition or casualty or condemnation loss of any Collateral or other
assets of any Borrower Party (other than Net Cash Proceeds from the sale of
Inventory in the ordinary course of business), including, without limitation,
the sale or other disposition of any Subsidiary of any Borrower Party, shall be
paid on the date of receipt thereof by the Borrower Parties as a mandatory
payment of the Obligations; provided, however, so long as no Default or Event of
Default exists, the Borrower shall not be required to apply such Net Cash
Proceeds in the aggregate amount of $2,000,000 for each fiscal year to repay the
Obligations to the

                                       29

<PAGE>

extent that such Net Cash Proceeds are reinvested in equipment or other assets
that are used or useful in the business of such Borrower Party within one
hundred twenty (120) days of receipt by such Borrower Party of such Net Cash
Proceeds. So long as no Event of Default exists, all such Net Cash Proceeds
(other than Net Cash Proceeds from the sale of Inventory in the ordinary course
of business or from the casualty loss of any Inventory) shall be applied first
to repay outstanding Agent Advances and then to repay outstanding Revolving
Loans. So long as no Event of Default exists, all such other Net Cash Proceeds
shall be applied in the manner set forth in Section 2.11(a). Notwithstanding the
foregoing, if an Event of Default exists, all such Net Cash Proceeds shall be
applied in the manner set forth in Section 2.11(b). The Commitment shall not be
permanently reduced by the amount of any payment of the Agent Advances or
Revolving Loans due under this Section 2.6(b).

      (c) The Other Obligations. In addition to the foregoing, the Borrower
hereby promises to pay all Obligations (other than Obligations in respect of
Hedge Agreements), including, without limitation, the principal amount of the
Loans, amounts drawn under Letters of Credit and interest and fees on the
foregoing, as the same become due and payable hereunder and, in any event, on
the Maturity Date. In addition to the foregoing, the Borrower hereby promises to
pay all Obligations in respect of Hedge Agreements as the same become due and
payable under the applicable Hedge Agreements.

      Section 2.7 Notes; Loan Accounts.

      (a) The Loans shall be repayable in accordance with the terms and
provisions set forth herein and, upon request by any Lender, the Loans owed to
such Lender shall be evidenced by Notes. A Note shall be payable to the order of
each Lender requesting such a Note in accordance with the Commitment Ratio of
such Lender. Each such Note shall be issued by the Borrower to the applicable
Lender and shall be duly executed and delivered by an Authorized Signatory of
the Borrower.

      (b) The Administrative Agent shall open and maintain on its books in the
name of the Borrower a loan account with respect to the Loans and interest
thereon (the "Loan Account"). The Administrative Agent shall debit such Loan
Account for the principal amount of each Advance made by it on behalf of the
Lenders, accrued interest thereon, and all other amounts which shall become due
from the Borrower pursuant to this Agreement and shall credit the Loan Account
for each payment which the Borrower shall make in respect to the Obligations.
The records of the Administrative Agent with respect to such Loan Account shall
be conclusive evidence of the Loans and accrued interest thereon, absent
manifest error.

      Section 2.8 Manner of Payment.

      (a) When Payments Due.

                  (i) Each payment (including any prepayment) by the Borrower on
account of the principal of or interest on the Loans, fees, and any other amount
owed to any member of the Lender Group under this Agreement or the other Loan
Documents shall be made not later than 1:00 p.m. (Atlanta, Georgia time) on the
date specified for payment under this Agreement or any other Loan Document to
the Administrative Agent at the Administrative Agent's Office, for the account
of the Lenders, the Issuing Lender or the Administrative Agent, as the case may
be, in Dollars in immediately available funds. Any payment received by the
Administrative Agent after 1:00 p.m. (Atlanta, Georgia time) shall be deemed
received on the next Business Day. In the case of a payment for the account of a
Lender, the Administrative Agent will promptly thereafter distribute the amount
so received in like funds to such Lender. In the case of a payment for the
account of the Issuing Lender, the Administrative Agent will promptly thereafter
distribute the amount so received in like funds to the Issuing Lender. If the

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<PAGE>

Administrative Agent shall not have received any payment from the Borrower as
and when due, the Administrative Agent will promptly notify the Lenders
accordingly.

                  (ii) Except as provided in the definition of Eurodollar
Advance Period, if any payment under this Agreement or any other Loan Document
shall be specified to be made on a day which is not a Business Day, it shall be
made on the next succeeding day which is a Business Day, and such extension of
time shall in such case be included in computing interest and fees, if any, in
connection with such payment.

      (b) No Deduction.

                  (i) Any and all payments of principal and interest, or of any
fees or indemnity or expense reimbursements by the Borrower hereunder or under
any other Loan Documents (the "Borrower Payments") shall be made without setoff
or counterclaim and free and clear of and without deduction for any and all
current or future taxes, levies, imposts, deductions, charges or withholdings
with respect to such Borrower Payments and all interest, penalties or similar
liabilities with respect thereto, excluding taxes imposed on the net income of
any member of the Lender Group by the jurisdiction under the laws of which such
member of the Lender Group is organized or conducts business or any political
subdivision thereof (all such nonexcluded taxes, levies, imposts, deductions,
charges or withholdings and liabilities collectively or individually "Taxes").
If the Borrower shall be required to deduct any Taxes from or in respect of any
sum payable to any member of the Lender Group hereunder or under any other Loan
Document, (i) the sum payable shall be increased by the amount (an "additional
amount") necessary so that after making all required deductions (including
deductions applicable to additional sums payable under this Section 2.8(b)(i),
such member of the Lender Group shall receive an amount equal to the sum it
would have received had no such deductions been made, (ii) the Borrower shall
make such deductions, and (iii) the Borrower shall pay the full amount deducted
to the relevant Governmental Authority in accordance with Applicable Law.

                  (ii) In addition, the Borrower shall pay to the relevant
Governmental Authority in accordance with Applicable Law any current or future
stamp or documentary taxes or any other excise or property taxes, charges or
similar levies that arise from any payment made hereunder or from the execution,
delivery or registration of, or otherwise with respect to, this Agreement or any
other Loan Document (such taxes being "Other Taxes").

                  (iii) The Borrower shall indemnify the members of the Lender
Group for the full amount of Taxes and Other Taxes with respect to Borrower
Payments paid by such Person, and any liability (including penalties, interest
and expenses (including reasonable attorney's fees and expenses)) arising
therefrom or with respect thereto, whether or not such Taxes or Other Taxes were
correctly or legally asserted by the relevant Governmental Authority. A
certificate setting forth and containing an explanation in reasonable detail of
the manner in which such amount shall have been determined and the amount of
such payment or liability prepared by a member of the Lender Group or the
Administrative Agent on its behalf, absent manifest error, shall be final,
conclusive and binding for all purposes. Such indemnification shall be made
within thirty (30) days after the date the Administrative Agent or such member,
as the case may be, makes written demand therefor. If any Taxes or Other Taxes
for which the Administrative Agent or any member of the Lender Group has
received indemnification from the Borrower hereunder shall be finally determined
to have been incorrectly or illegally asserted and are refunded to the
Administrative Agent or such member, the Administrative Agent or such member, as
the case may be, shall promptly forward to the Borrower any such refunded amount
(after deduction of any Tax or Other Tax paid or payable by any member of the
Lender Group as a result of such refund), not exceeding the increased amount
paid by the Borrower pursuant to this Section 2.8(b).

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<PAGE>

                  (iv) As soon as practicable after the date of any payment of
Taxes or Other Taxes by the Borrower to the relevant Governmental Authority, the
Borrower will deliver to the Administrative Agent, at its address, the original
or a certified copy of a receipt issued by such Governmental Authority
evidencing payment thereof.

                  (v) On or prior to the Agreement Date (or, in the case of any
Lender that becomes a party to this Agreement pursuant to an Assignment and
Acceptance, on or prior to the effective date of such Assignment and
Acceptance), each Lender which is organized in a jurisdiction other than the
United States or a political subdivision thereof (a "Foreign Lender") shall
provide each of the Administrative Agent and the Borrower with either (A) two
(2) properly executed originals of Form W-8ECI or Form W-8BEN (or any successor
forms) prescribed by the Internal Revenue Service or other documents
satisfactory to the Borrower and the Administrative Agent, as the case may be,
certifying (1) as to such Foreign Lender's status for purposes of determining
exemption from United States withholding taxes with respect to all payments to
be made to such Foreign Lender hereunder and under any other Loan Documents or
(2) that all payments to be made to such Foreign Lender hereunder and under any
other Loan Documents are subject to such taxes at a rate reduced to zero by an
applicable tax treaty, or (B)(1) a certificate executed by such Lender
certifying that such Lender is not a "bank" and that such Lender qualifies for
the portfolio interest exemption under Section 881(c) of the Code, and (2) two
(2) properly executed originals of Internal Revenue Service Form W-8BEN (or any
successor form), in each case, certifying such Lender's entitlement to an
exemption from United States withholding tax with respect to payments of
interest to be made hereunder or under any other Loan Documents. Each such
Foreign Lender agrees to provide the Administrative Agent and the Borrower with
new forms prescribed by the Internal Revenue Service upon the expiration or
obsolescence of any previously delivered form, or after the occurrence of any
event requiring a change in the most recent forms delivered by it to the
Administrative Agent and the Borrower.

                  (vi) The Borrower shall not be required to indemnify any
Foreign Lender, or to pay any additional amounts to such Foreign Lender pursuant
to Section 2.8(b)(i) or (b)(iii) above to the extent that (A) the obligation to
withhold amounts with respect to United States Federal, state or local
withholding tax existed on the date such Foreign Lender became a party to this
Agreement (or, in the case of a transferee, on the effective date of the
Assignment and Acceptance pursuant to which such transferee became a Lender) or,
with respect to payments to a new lending office, the date such Foreign Lender
designated such new lending office; provided, however, that this clause (A)
shall not apply to any Foreign Lender that became a Lender or new lending office
that became a new lending office as a result of an assignment or designation
made at the request of the Borrower; and provided further, however, that this
clause (A) shall not apply to the extent the indemnity payment or additional
amounts, if any, that any member of the Lender Group through a new lending
office would be entitled to receive (without regard to this clause (A)) do not
exceed the indemnity payment or additional amounts that the Person making the
assignment or transfer to such member of the Lender Group making the designation
of such new lending office would have been entitled to receive in the absence of
such assignment, transfer or designation or (B) the obligation to pay such
additional amounts or such indemnity payments would not have arisen but for a
failure by such member of the Lender Group to comply with the provisions of
Section 2.8(b)(v) above.

                  (vii) Nothing contained in this Section 2.8(b) shall require
any member of the Lender Group to make available to the Borrower any of its tax
returns (or any other information) that it deems confidential or proprietary.

      Section 2.9 Reimbursement. Whenever any Lender shall sustain or incur any
losses (including losses of anticipated profits) or out-of-pocket expenses in
connection with (a) failure by the Borrower to borrow or continue any Eurodollar

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<PAGE>

Advance, or convert any Advance to a Eurodollar Advance, in each case, after
having given notice of its intention to do so in accordance with Section 2.2
(whether by reason of the election of the Borrower not to proceed or the
non-fulfillment of any of the conditions set forth in this Agreement), or (b)
prepayment of any Eurodollar Advance in whole or in part for any reason or (c)
failure by the Borrower to prepay any Eurodollar Advance after giving notice of
its intention to prepay such Advance, the Borrower agrees to pay to such Lender,
promptly upon such Lender's demand therefor, an amount sufficient to compensate
such Lender for all such losses and out-of-pocket expenses. Such Lender's good
faith determination of the amount of such losses and out-of-pocket expenses,
absent manifest error, shall be binding and conclusive. Losses subject to
reimbursement hereunder shall include, without limitation or duplication,
expenses incurred by any Lender or any participant of such Lender permitted
hereunder in connection with the re-employment of funds prepaid, repaid, not
borrowed, or paid, as the case may be, and any lost profit of such Lender or any
participant of such Lender over the remainder of the Eurodollar Advance Period
for such prepaid Advance. For purposes of calculating amounts payable to a
Lender under this paragraph, each Lender shall be deemed to have actually funded
its relevant Eurodollar Advance through the purchase of a deposit bearing
interest at the Eurodollar Rate in an amount equal to the amount of that
Eurodollar Advance and having a maturity and repricing characteristics
comparable to the relevant Eurodollar Advance Period; provided, however, that
each Lender may fund each of its Eurodollar Advances in any manner it sees fit,
and the foregoing assumption shall be utilized only for the calculation of
amounts payable under this Section 2.9.

      Section 2.10 Pro Rata Treatment.

      (a) Advances. Each Advance with respect to the Revolving Loans from the
Lenders under this Agreement shall be made pro rata on the basis of their
respective Commitment Ratios.

      (b) Payments. Each payment and prepayment of the principal of the
Revolving Loans and each payment of interest on the Revolving Loans received
from the Borrower shall be made by the Administrative Agent to the Lenders pro
rata on the basis of their respective unpaid principal amounts thereof
outstanding immediately prior to such payment or prepayment (except in cases
when a Lender's right to receive payments is restricted pursuant to Section
2.2(e)). If any Lender shall obtain any payment (whether involuntary, through
the exercise of any right of set-off or otherwise) on account of the Loans in
excess of its ratable share of Loans under its Aggregate Commitment Ratio (or in
violation of any restriction set forth in Section 2.2(e)), such Lender shall
forthwith purchase from the other Lenders such participation in the Loans made
by them as shall be necessary to cause such purchasing Lender to share the
excess payment ratably with each of them; provided, however, that if all or any
portion of such excess payment is thereafter recovered from such purchasing
Lender, such purchase from each Lender shall be rescinded and such Lender shall
repay to the purchasing Lender the purchase price to the extent of such recovery
without interest thereon unless the Lender obligated to repay such amount is
required to pay interest. The Borrower agrees that any Lender so purchasing a
participation from another Lender pursuant to this Section 2.10(b) may, to the
fullest extent permitted by law, exercise all its rights of payment (including
the right of set-off) with respect to such participation as fully as if such
Lender were the direct creditor of the Borrower in the amount of such
participation.

      Section 2.11 Application of Payments.

      (a) Payments Prior to Event of Default. Prior to the occurrence and
continuance of an Event of Default, all amounts received by the Administrative
Agent from the Borrower (other than payments specifically earmarked for
application to certain principal, interest, fees or expenses hereunder or
payments made pursuant to Section 2.6(b) (which shall be applied as earmarked
or, with respect to payments under Section 2.6(b), as set forth in Section
2.6(b))), shall be distributed by the Administrative Agent in the following
order of priority: FIRST, to the payment of fees and expenses then due and
payable to the Administrative Agent hereunder; SECOND, pro rata, to the payment
of any fees and

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<PAGE>

expenses then due and payable to the Lenders and the Issuing Lender hereunder or
under any other Loan Documents; THIRD, pro rata, to the payment of interest then
due and payable on the Agent Advances and the Revolving Loans; FOURTH, to the
payment of principal then due and payable on the Agent Advances; FIFTH, pro
rata, to (i) the payment of principal on the Revolving Loans then outstanding
and (ii) the payment of any Obligation arising in respect of the Hedge
Agreements; and SIXTH, to the payment of all other Obligations not otherwise
referred to in this Section 2.11(a) then due and payable.

      (b) Payments Subsequent to Event of Default. Notwithstanding anything in
this Agreement or any other Loan Documents which may be construed to the
contrary, subsequent to the occurrence and during the continuance of an Event of
Default, payments and prepayments with respect to the Obligations made to the
Lender Group, or any of them, or otherwise received by any member of the Lender
Group (from realization on Collateral or otherwise) shall be distributed in the
following order of priority (subject, as applicable, to Section 2.10): FIRST, to
the costs and expenses (including attorneys' fees and expenses), if any,
incurred by any member of the Lender Group in the collection of such amounts
under this Agreement or of the Loan Documents, including, without limitation,
any costs incurred in connection with the sale or disposition of any Collateral;
SECOND, to any fees then due and payable to the Administrative Agent under this
Agreement or any other Loan Document; THIRD, pro rata, to any fees then due and
payable to the Lenders and the Issuing Lender under this Agreement or any other
Loan Document; FOURTH, pro rata, to the payment of interest then due and payable
on the Agent Advances and the Revolving Loans; FIFTH, pro rata, to (i) the
payment of the principal of the Agent Advances then outstanding, (ii) the
payment of principal on the Revolving Loans then outstanding, (iii) the Letter
of Credit Reserve Account to the extent of one hundred five percent (105%) of
any Letter of Credit Obligations then outstanding, and (iv) the payment of any
Obligation arising in respect of the Hedge Agreements; SIXTH, to any other
Obligations not otherwise referred to in this Section 2.11(b); SEVENTH, to
damages incurred by the Administrative Agent or any Lender by reason of any
breach hereof or of any other Loan Document; and EIGHTH, upon satisfaction in
full of all Obligations, to the Borrower or as otherwise required by law.

      Section 2.12 Use of Proceeds. The proceeds of the Loans shall be used by
the Borrower as follows:

      (a) The proceeds of the initial Advance of Revolving Loans hereunder shall
be used on the Agreement Date to provide financing, related to the acquisition
by the Borrower of the Stock of the Target pursuant to the Merger Agreement, to
fund transaction costs, and for working capital.

      (b) The balance of the proceeds of the Loans shall be advanced to the
Borrower and may be used for the Borrower Parties' general operating needs to
the extent not inconsistent with the provisions of this Agreement.

      Section 2.13 All Obligations to Constitute One Obligation. All Obligations
shall constitute one general obligation of the Borrower and shall be secured by
the Administrative Agent's security interest (on behalf of, and for the benefit
of, the Lender Group) and Lien upon all of the Collateral, and by all other
security interests and Liens heretofore, now or at any time hereafter granted by
any Borrower Party to the Administrative Agent or any other member of the Lender
Group, to the extent provided in the Security Documents under which such Liens
arise.

      Section 2.14 Maximum Rate of Interest. The Borrower and the Lender Group
hereby agree and stipulate that the only charges imposed upon the Borrower for
the use of money in connection with this Agreement are and shall be the specific
interest and fees described in this Article 2 and in any other Loan Document.
Notwithstanding the foregoing, the Borrower and the Lender Group further agree
and stipulate that all closing fees, agency fees, syndication fees, facility
fees, underwriting fees, default

                                       34

<PAGE>

charges, late charges, funding or "breakage" charges, increased cost charges,
attorneys' fees and reimbursement for costs and expenses paid by any member of
the Lender Group to third parties or for damages incurred by the Lender Group,
or any of them, are charges to compensate the Lender Group for underwriting and
administrative services and costs or losses performed or incurred, and to be
performed and incurred, by the Lender Group in connection with this Agreement
and the other Loan Documents and shall under no circumstances be deemed to be
charges for the use of money pursuant to Official Code of Georgia Annotated
Sections 7-4-2 and 7-4-18 or any other Applicable Law. In no event shall the
amount of interest and other charges for the use of money payable under this
Agreement exceed the maximum amounts permissible under any law that a court of
competent jurisdiction shall, in a final determination, deem applicable. The
Borrower and the Lender Group, in executing and delivering this Agreement,
intend legally to agree upon the rate or rates of interest and other charges for
the use of money and manner of payment stated within it; provided, however,
that, anything contained herein to the contrary notwithstanding, if the amount
of such interest and other charges for the use of money or manner of payment
exceeds the maximum amount allowable under Applicable Law, then, ipso facto as
of the Agreement Date, the Borrower is and shall be liable only for the payment
of such maximum as allowed by law, and payment received from the Borrower in
excess of such legal maximum, whenever received, shall be applied to reduce the
principal balance of the Revolving Loans to the extent of such excess.

      Section 2.15 Letters of Credit.

      (a) Subject to the terms and conditions of this Agreement, the Issuing
Lender, on behalf of the Lenders, and in reliance on the agreements of the
Lenders set forth in Section 2.15(c) below, hereby agrees to issue one or more
Letters of Credit up to an aggregate face amount equal to the Letter of Credit
Commitment; provided, however, that, except as described in the last sentence of
Section 4.3, the Issuing Lender shall not issue any Letter of Credit unless the
conditions precedent to the issuance thereof set forth in Section 4.3 have been
satisfied. Each Letter of Credit shall (1) be denominated in Dollars, and (2)
expire no later than the earlier to occur of (A) the date thirty (30) days prior
to the Maturity Date, and (B) three hundred sixty (360) days after its date of
issuance (but may contain provisions for automatic renewal provided that no
Default exists on the renewal date or would be caused by such renewal and
provided no such renewal shall extend beyond the date thirty (30) days prior to
the Maturity Date). Each Letter of Credit shall be subject to the Uniform
Customs and, to the extent not inconsistent therewith, the laws of the State of
New York. The Issuing Lender shall not at any time be obligated to issue, or
cause to be issued, any Letter of Credit if such issuance would conflict with,
or cause the Issuing Lender to exceed any limits imposed by, any Applicable Law.

      (b) The Borrower may from time to time request that the Issuing Lender
issue a Letter of Credit. The Borrower shall execute and deliver to the
Administrative Agent and the Issuing Lender a Request for Issuance of Letter of
Credit for each Letter of Credit to be issued by the Issuing Lender, not later
than 1:00 p.m. (Atlanta, Georgia time) on the third (3rd) Business Day preceding
the date on which the requested Letter of Credit is to be issued, or such
shorter notice as may be acceptable to the Issuing Lender and the Administrative
Agent. Upon receipt of any such Request for Issuance of Letter of Credit,
subject to satisfaction of all conditions precedent thereto as set forth in
Section 4.3 or waiver of such conditions pursuant to the last sentence of
Section 4.3, the Issuing Lender shall process such Request for Issuance of
Letter of Credit and the certificates, documents and other papers and
information delivered to it in connection therewith in accordance with its
customary procedures and shall promptly issue the Letter of Credit requested
thereby. The Issuing Lender shall furnish a copy of such Letter of Credit to the
Borrower and the Administrative Agent following the issuance thereof. In
addition to the fees payable pursuant to Section 2.4(c)(ii), the Borrower shall
pay or reimburse the Issuing Lender for normal and customary costs and expenses
incurred by the Issuing Lender in issuing, effecting payment under, amending or
otherwise administering the Letters of Credit.

                                       35

<PAGE>

      (c) Immediately upon the issuance by the Issuing Lender of a Letter of
Credit and in accordance with the terms and conditions of this Agreement, the
Issuing Lender shall be deemed to have sold and transferred to each Lender, and
each Lender shall be deemed irrevocably and unconditionally to have purchased
and received from the Issuing Lender, without recourse or warranty, an undivided
interest and participation, to the extent of such Lender's Commitment Ratio, in
such Letter of Credit and the obligations of the Borrower with respect thereto
(including, without limitation, all Letter of Credit Obligations with respect
thereto). The Issuing Lender shall promptly notify the Administrative Agent of
any draw under a Letter of Credit. At such time as the Administrative Agent
shall be notified by the Issuing Lender that the beneficiary under any Letter of
Credit has drawn on the same, the Administrative Agent shall promptly notify the
Borrower and the Lenders, by telephone or telecopy, of the amount of the draw
and, in the case of each Lender, such Lender's portion of such draw amount as
calculated in accordance with its Commitment Ratio.

      (d) The Borrower hereby agrees to immediately reimburse the Issuing Lender
for amounts paid by the Issuing Lender in respect of draws under each Letter of
Credit. In order to facilitate such repayment, the Borrower hereby irrevocably
requests the Lenders, and the Lenders hereby severally agree, on the terms and
conditions of this Agreement (other than as provided in Article 2 with respect
to the amounts of, the timing of requests for, and the repayment of Advances
hereunder and in Article 4 with respect to conditions precedent to Advances
hereunder), with respect to any drawing under a Letter of Credit, to make a
Prime Rate Advance on each day on which a draw is made under any Letter of
Credit and in the amount of such draw, and to pay the proceeds of such Advance
directly to the Issuing Lender to reimburse the Issuing Lender for the amount
paid by it upon such draw. Each Lender shall pay its share of such Prime Rate
Advance by paying its portion of such Advance to the Administrative Agent in
accordance with Section 2.2(e) and its Commitment Ratio, without reduction for
any set-off or counterclaim of any nature whatsoever and regardless of whether
any Default exists or would be caused thereby. The disbursement of funds in
connection with a draw under a Letter of Credit pursuant to this Section
hereunder shall be subject to the terms and conditions of Section 2.2(e). The
obligation of each Lender to make payments to the Administrative Agent, for the
account of the Issuing Lender, in accordance with this Section 2.15 shall be
absolute and unconditional and no Lender shall be relieved of its obligations to
make such payments by reason of noncompliance by any other Person with the terms
of the Letter of Credit or for any other reason (other than the gross negligence
or willful misconduct of the Issuing Lender in paying such Letter of Credit, as
determined by a final non-appealable judgment of a court of competent
jurisdiction). The Administrative Agent shall promptly remit to the Issuing
Lender the amounts so received from the other Lenders. Any overdue amounts
payable by the Lenders to the Issuing Lender in respect of a draw under any
Letter of Credit shall bear interest, payable on demand, (x) for the first two
(2) Business Days, at the Federal Funds Rate, and (y) thereafter, at the Prime
Rate.

      (e) The Borrower agrees that each Advance by the Lenders to reimburse the
Issuing Lender for draws under any Letter of Credit, shall, for all purposes
hereunder, unless and until converted into a Eurodollar Advance pursuant to
Section 2.2(b)(ii), be deemed to be a Prime Rate Advance under the Commitment
and shall be payable and bear interest in accordance with all other Prime Rate
Advances of Revolving Loans.

      (f) The Borrower agrees that any action taken or omitted to be taken by
the Issuing Lender in connection with any Letter of Credit, except for such
actions or omissions as shall constitute gross negligence or willful misconduct
on the part of such Issuing Lender as determined by a final non-appealable
judgment of a court of competent jurisdiction, shall be binding on the Borrower
as between the Borrower and the Issuing Lender, and shall not result in any
liability of the Issuing Lender to the Borrower. The obligation of the Borrower
to reimburse the Issuing Lender for a drawing under any Letter of Credit or the
Lenders for Advances made by them to the Issuing Lender on account of draws made
under the Letters of Credit shall be absolute, unconditional and irrevocable,
and shall be paid strictly in

                                       36

<PAGE>

accordance with the terms of this Agreement under all circumstances whatsoever,
including, without limitation, the following circumstances:

                  (i) Any lack of validity or enforceability of any Loan
Document;

                  (ii) Any amendment or waiver of or consent to any departure
from any or all of the Loan Documents;

                  (iii) Any improper use which may be made of any Letter of
Credit or any improper acts or omissions of any beneficiary or transferee of any
Letter of Credit in connection therewith;

                  (iv) The existence of any claim, set-off, defense or any right
which the Borrower may have at any time against any beneficiary or any
transferee of any Letter of Credit (or Persons for whom any such beneficiary or
any such transferee may be acting), any Lender or any other Person, whether in
connection with any Letter of Credit, any transaction contemplated by any Letter
of Credit, this Agreement, or any other Loan Document, or any unrelated
transaction;

                  (v) Any statement or any other documents presented under any
Letter of Credit proving to be insufficient, forged, fraudulent or invalid in
any respect or any statement therein being untrue or inaccurate in any respect
whatsoever;

                  (vi) The insolvency of any Person issuing any documents in
connection with any Letter of Credit;

                  (vii) Any breach of any agreement between the Borrower and any
beneficiary or transferee of any Letter of Credit;

                  (viii) Any irregularity in the transaction with respect to
which any Letter of Credit is issued, including any fraud by the beneficiary or
any transferee of such Letter of Credit;

                  (ix) Any errors, omissions, interruptions or delays in
transmission or delivery of any messages, by mail, cable, telegraph, wireless or
otherwise, whether or not they are in code;

                  (x) Any act, error, neglect or default, omission, insolvency
or failure of business of any of the correspondents of the Issuing Lender;

                  (xi) Any other circumstances arising from causes beyond the
control of the Issuing Lender;

                  (xii) Payment by the Issuing Lender under any Letter of Credit
against presentation of a sight draft or a certificate which does not comply
with the terms of such Letter of Credit, provided that such payment shall not
have constituted gross negligence or willful misconduct of the Issuing Lender as
determined by a final non-appealable judgment of a court of competent
jurisdiction; and

                  (xiii) Any other circumstance or happening whatsoever, whether
or not similar to any of the foregoing.

      (g) The Borrower will indemnify and hold harmless each Indemnified Person
from and against any and all claims, liabilities, obligations, losses, damages,
penalties, actions, judgments, suits,

                                       37

<PAGE>

costs, expenses or disbursements of any kind or nature whatsoever (including
reasonable attorneys' fees) which may be imposed on, incurred by or asserted
against such Indemnified Person in any way relating to or arising out of the
issuance of a Letter of Credit, except that the Borrower shall not be liable to
an Indemnified Person for any portion of such claims, liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements resulting from the gross negligence or willful misconduct of such
Indemnified Person as determined by a final non-appealable judgment of a court
of competent jurisdiction. This Section 2.15(g) shall survive termination of
this Agreement.

      (h) Each Lender shall be responsible (to the extent the Issuing Lender is
not reimbursed by the Borrower) for its pro rata share (based on such Lender's
Commitment Ratio) of any and all reasonable out-of-pocket costs, expenses
(including reasonable legal fees) and disbursements which may be incurred or
made by the Issuing Lender in connection with the collection of any amounts due
under, the administration of, or the presentation or enforcement of any rights
conferred by any Letter of Credit, the Borrower's or any guarantor's obligations
to reimburse draws thereunder or otherwise. In the event the Borrower shall fail
to pay such expenses of the Issuing Lender within fifteen (15) days of demand
for payment by the Issuing Lender, each Lender shall thereupon pay to the
Issuing Lender its pro rata share (based on such Lender's Commitment Ratio) of
such expenses within ten (10) days from the date of the Issuing Lender's notice
to the Lenders of the Borrower's failure to pay; provided, however, that if the
Borrower shall thereafter pay such expenses, the Issuing Lender will repay to
each Lender the amounts received from such Lender hereunder.

      Section 2.16 Hedge Agreements. Any Borrower Party may request Hedge
Agreements although no Borrower Party is required to do so. If any Hedge
Agreements are provided, the Borrower Parties agree to indemnify and hold the
Lender Group, or any of them, harmless from any and all costs and obligations
now or hereafter incurred by the Lender Group, or any of them, which arise from
any indemnity given by them to the Administrative Agent or its Affiliate, as
applicable, related to such Hedge Agreements. The agreement contained in this
Section shall survive termination of this Agreement. The Borrower Parties
acknowledge and agree that the obtaining of Hedge Agreements from the
Administrative Agent or any of its Affiliates (a) is in the sole and absolute
discretion of the Administrative Agent or such Affiliates, and (b) is subject to
all rules and regulations of the Administrative Agent or such Affiliate.

                                   ARTICLE 3.

                                    GUARANTY

      Section 3.1 Guaranty.

      (a) Each Guarantor hereby guarantees to the Administrative Agent, for the
benefit of the Lender Group, the full and prompt payment of the Obligations,
including, without limitation, any interest therein (including, without
limitation, interest as provided in this Agreement accruing after the filing of
a petition initiating any insolvency proceedings, whether or not such interest
accrues or is recoverable against the Borrower after the filing of such petition
for purposes of the Bankruptcy Code or is an allowed claim in such proceeding),
plus reasonable attorneys' fees and expenses if the obligations represented by
this Guaranty are collected by law, through an attorney-at-law, or under advice
therefrom.

      (b) Regardless of whether any proposed guarantor or any other Person shall
become in any other way responsible to the Lender Group, or any of them, for or
in respect of the Obligations or any part thereof, and regardless of whether or
not any Person now or hereafter responsible to the Lender Group, or any of them,
for the Obligations or any part thereof, whether under this Guaranty or
otherwise, shall cease to be so liable, each Guarantor hereby declares and
agrees that this Guaranty shall be a joint and several

                                       38

<PAGE>

obligation, shall be a continuing guaranty and shall be operative and binding
until the Obligations shall have been indefeasibly paid in full in cash (or in
the case of Letter of Credit Obligations, secured through delivery of cash
collateral in an amount equal to one hundred and five percent (105%) of the
Letter of Credit Obligations) and the Commitments shall have been terminated.

      (c) Each Guarantor absolutely, unconditionally and irrevocably waives any
and all right to assert any defense (other than the defense of payment in cash
in full, to the extent of its obligations hereunder, or a defense that such
Guarantor's liability is limited as provided in Section 3.1(g)), set-off,
counterclaim or cross-claim of any nature whatsoever with respect to this
Guaranty or the obligations of the Guarantors under this Guaranty or the
obligations of any other Person or party (including, without limitation, the
Borrower) relating to this Guaranty or the obligations of any of the Guarantors
under this Guaranty or otherwise with respect to the Obligations in any action
or proceeding brought by the Administrative Agent or any other member of the
Lender Group to collect the Obligations or any portion thereof, or to enforce
the obligations of any of the Guarantors under this Guaranty.

      (d) The Lender Group, or any of them, may from time to time, without
exonerating or releasing any Guarantor in any way under this Guaranty, (i) take
such further or other security or securities for the Obligations or any part
thereof as they may deem proper, or (ii) release, discharge, abandon or
otherwise deal with or fail to deal with any Guarantor of the Obligations or any
security or securities therefor or any part thereof now or hereafter held by the
Lender Group, or any of them, or (iii) amend, modify, extend, accelerate or
waive in any manner any of the provisions, terms, or conditions of the Loan
Documents, all as they may consider expedient or appropriate in their sole
discretion. Without limiting the generality of the foregoing, or of Section
3.1(e), it is understood that the Lender Group, or any of them, may, without
exonerating or releasing any Guarantor, give up, modify or abstain from
perfecting or taking advantage of any security for the Obligations and accept or
make any compositions or arrangements, and realize upon any security for the
Obligations when, and in such manner, and with or without notice, all as such
Person may deem expedient.

      (e) Each Guarantor acknowledges and agrees that no change in the nature or
terms of the Obligations or any of the Loan Documents, or other agreements,
instruments or contracts evidencing, related to or attendant with the
Obligations (including any novation), shall discharge all or any part of the
liabilities and obligations of such Guarantor pursuant to this Guaranty; it
being the purpose and intent of the Guarantors and the Lender Group that the
covenants, agreements and all liabilities and obligations of each Guarantor
hereunder are absolute, unconditional and irrevocable under any and all
circumstances. Without limiting the generality of the foregoing, each Guarantor
agrees that until each and every one of the covenants and agreements of this
Guaranty is fully performed, and without possibility of recourse, whether by
operation of law or otherwise, such Guarantor's undertakings hereunder shall not
be released, in whole or in part, by any action or thing which might, but for
this paragraph of this Guaranty, be deemed a legal or equitable discharge of a
surety or guarantor, or by reason of any waiver, omission of the Lender Group,
or any of them, or their failure to proceed promptly or otherwise, or by reason
of any action taken or omitted by the Lender Group, or any of them, whether or
not such action or failure to act varies or increases the risk of, or affects
the rights or remedies of, such Guarantor or by reason of any further dealings
between the Borrower, on the one hand, and any member of the Lender Group, on
the other hand, or any other guarantor or surety, and such Guarantor hereby
expressly waives and surrenders any defense to its liability hereunder, or any
right of counterclaim or offset of any nature or description which it may have
or may exist based upon, and shall be deemed to have consented to, any of the
foregoing acts, omissions, things, agreements or waivers.

      (f) The Lender Group, or any of them, may, without demand or notice of any
kind upon or to any Guarantor, at any time or from time to time when any amount
shall be due and payable hereunder by any Guarantor, if the Borrower shall not
have timely paid any of the Obligations (or in the case of Letter

                                       39

<PAGE>

of Credit Obligations, secured through delivery of cash collateral in an amount
equal to one hundred and five percent (105%) of the Letter of Credit
Obligations), set-off and appropriate and apply to any portion of the
Obligations hereby guaranteed, and in such order of application as the
Administrative Agent may from time to time elect in accordance with this
Agreement, any deposits, property, balances, credit accounts or moneys of any
Guarantor in the possession of any member of the Lender Group or under their
respective control for any purpose. If and to the extent that any Guarantor
makes any payment to the Administrative Agent or any other Person pursuant to or
in respect of this Guaranty, any claim which such Guarantor may have against the
Borrower by reason thereof shall be subject and subordinate to the prior payment
in full of the Obligations to the satisfaction of the Lender Group.

      (g) The creation or existence from time to time of Obligations in excess
of the amount committed to or outstanding on the date of this Guaranty is hereby
authorized, without notice to any Guarantor, and shall in no way impair or
affect this Guaranty or the rights of the Lender Group herein. It is the
intention of each Guarantor and the Administrative Agent that each Guarantor's
obligations hereunder shall be, but not in excess of, the Maximum Guaranteed
Amount (as herein defined). The "Maximum Guaranteed Amount" with respect to any
Guarantor, shall mean the maximum amount which could be paid by such Guarantor
without rendering this Guaranty void or voidable as would otherwise be held or
determined by a court of competent jurisdiction in any action or proceeding
involving any state or Federal bankruptcy, insolvency, reorganization,
moratorium, fraudulent conveyance or other similar laws relating to the
insolvency of debtors.

      (h) To the extent set forth in Section 3.1(g), but only to the extent that
the Obligations of any Guarantor hereunder, or the transfers made by such
Guarantor under any Security Document, would otherwise be subject to avoidance
under any Avoidance Provisions if such Guarantor is not deemed to have received
valuable consideration, fair value, fair consideration or reasonably equivalent
value for such transfers or obligations, or if such transfers or obligations of
any Guarantor hereunder would render such Guarantor insolvent, or leave such
Guarantor with an unreasonably small capital or unreasonably small assets to
conduct its business, or cause such Guarantor to have incurred debts (or to have
intended to have incurred debts) beyond its ability to pay such debts as they
mature, in each case as of the time any of the obligations of such Guarantor are
deemed to have been incurred and transfers made under such Avoidance Provisions,
then the obligations of such Guarantor hereunder shall be reduced to that amount
which, after giving effect thereto, would not cause the Obligations of such
Guarantor hereunder (or any other Obligations of such Guarantor to the Lender
Group or any other Person holding any of the Obligations), as so reduced, to be
subject to avoidance under such Avoidance Provisions. This Section 3.1(h) is
intended solely to preserve the rights hereunder of the Lender Group and any
other Person holding any of the Obligations to the maximum extent that would not
cause the obligations of the Guarantors hereunder to be subject to avoidance
under any Avoidance Provisions, and none of the Guarantors nor any other Person
shall have any right, defense, offset, or claim under this Section 3.1(h) as
against the Lender Group or any other Person holding any of the Obligations that
would not otherwise be available to such Person under the Avoidance Provisions.

      (i) Upon the bankruptcy or winding up or other distribution of assets of
the Borrower, or of any surety or guarantor (other than the applicable
Guarantor) for any Obligations of the Borrower to the Lender Group, or any of
them, the rights of the Administrative Agent against any Guarantor shall not be
affected or impaired by the omission of any member of the Lender Group to prove
its claim, or to prove the full claim, as appropriate, against the Borrower, or
any such other guarantor or surety, and the Administrative Agent may prove such
claims as it sees fit and may refrain from proving any claim and in its
discretion may value as it sees fit or refrain from valuing any security held by
it without in any way releasing, reducing or otherwise affecting the liability
to the Lender Group of each of the Guarantors.

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<PAGE>

      (j) Each Guarantor hereby absolutely, unconditionally and irrevocably
expressly waives, except to the extent such waiver would be expressly prohibited
by Applicable Law, the following: (i) notice of acceptance of this Guaranty,
(ii) notice of the existence or creation of all or any of the Obligations, (iii)
presentment, demand, notice of dishonor, protest and all other notices
whatsoever (other than notices expressly required hereunder or under any other
Loan Document to which any Guarantor is a party), (iv) all diligence in
collection or protection of or realization upon the Obligations or any part
thereof, any obligation hereunder, or any security for any of the foregoing, (v)
all rights to enforce any remedy which the Lender Group, or any of them, may
have against the Borrower, and (vi) until the Obligations shall have been paid
in full in cash (or in the case of a Letter of Credit Obligations, secured
through delivery of cash collateral in an amount equal to one hundred and five
percent (105%) of the Letter of Credit Obligations), all rights of subrogation,
indemnification, contribution and reimbursement from the Borrower for amounts
paid hereunder and any benefit of, or right to participate in, any collateral or
security now or hereinafter held by the Lender Group, or any of them, in respect
of the Obligations. If a claim is ever made upon any member of the Lender Group
for the repayment or recovery of any amount or amounts received by such Person
in payment of any of the Obligations and such Person repays all or part of such
amount by reason of (A) any judgment, decree or order of any court or
administrative body having jurisdiction over such Person or any of its property,
or (B) any settlement or compromise of any such claim effected by such Person
with any such claimant, including the Borrower, then in such event each
Guarantor agrees that any such judgment, decree, order, settlement or compromise
shall be binding upon such Guarantor, notwithstanding any revocation hereof or
the cancellation of any promissory note or other instrument evidencing any of
the Obligations, and such Guarantor shall be and remain obligated to such Person
hereunder for the amount so repaid or recovered to the same extent as if such
amount had never originally been received by such Person.

      (k) This Guaranty is a continuing guaranty of the Obligations and all
liabilities to which it applies or may apply under the terms hereof and shall be
conclusively presumed to have been created in reliance hereon. No failure or
delay by any member of the Lender Group in the exercise of any right, power,
privilege or remedy shall operate as a waiver thereof, and no single or partial
exercise by the Administrative Agent of any right or remedy shall preclude other
or further exercise thereof or the exercise of any other right or remedy and no
course of dealing between any Guarantor and any member of the Lender Group shall
operate as a waiver thereof. No action by any member of the Lender Group
permitted hereunder shall in any way impair or affect this Guaranty. For the
purpose of this Guaranty, the Obligations shall include, without limitation, all
Obligations of the Borrower to the Lender Group, notwithstanding any right or
power of any third party, individually or in the name of the Borrower and the
Lender Group, or any of them, to assert any claim or defense as to the
invalidity or unenforceability of any such Obligation, and no such claim or
defense shall impair or affect the obligations of any Guarantor hereunder.

      (l) This is a guaranty of payment and not of collection. In the event the
Administrative Agent makes a demand upon any Guarantor in accordance with the
terms of this Guaranty, such Guarantor shall be held and bound to the
Administrative Agent directly as debtor in respect of the payment of the amounts
hereby guaranteed. All costs and expenses, including, without limitation,
reasonable attorneys' fees and expenses, incurred by the Administrative Agent in
obtaining performance of or collecting payments due under this Guaranty shall be
deemed part of the Obligations guaranteed hereby.

      (m) Each Subsidiary Guarantor is a direct or indirect wholly owned
Subsidiary of the Borrower. Each Guarantor expressly represents and acknowledges
that any financial accommodations by the Lender Group to the Borrower,
including, without limitation, the extension of credit, are and will be of
direct interest, benefit and advantage to such Guarantor.

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<PAGE>

      (n) The payment obligation of a Guarantor to any other Guarantor under any
Applicable Law regarding contribution rights among co-obligors or otherwise
shall be subordinate and subject in right of payment to the prior payment in
full of the obligations of such Guarantor under the other provisions of this
Guaranty, and such Guarantor shall not exercise any right or remedy with respect
to such rights until payment and satisfaction in full of all such obligations.

      Section 3.2 Special Provisions Applicable to Subsidiary Guarantors.
Pursuant to Section 6.20 of this Agreement, except as otherwise provided in such
Section, any new Subsidiary of the Borrower is required to enter into this
Agreement by executing and delivering to the Administrative Agent a Guaranty
Supplement. Upon the execution and delivery of a Guaranty Supplement by such new
Subsidiary, such Subsidiary shall become a Guarantor and Borrower Party
hereunder with the same force and effect as if originally named as a Guarantor
or Borrower Party herein. The execution and delivery of any Guaranty Supplement
adding an additional Guarantor as a party to this Agreement shall not require
the consent of any other party hereto. The rights and obligations of each party
hereunder shall remain in full force and effect notwithstanding the addition of
any new Guarantor hereunder.

                                   ARTICLE 4.

                              CONDITIONS PRECEDENT

      Section 4.1 Conditions Precedent to Initial Advance. The obligations of
the Lenders to undertake the Commitments and to make the initial Advance
hereunder, and the obligation of the Issuing Lender to issue the initial Letter
of Credit hereunder, are subject to the prior fulfillment of each of the
following conditions:

      (a) The Administrative Agent shall have received each of the following, in
form and substance satisfactory to the Lender Group:

                  (i) This duly executed Agreement;

                  (ii) A duly executed Note to the order of each Lender
requesting a promissory note in the amount of such Lender's Commitment Ratio of
the Commitment;

                  (iii) The Pledge Agreement duly executed by each Borrower
Party having one or more direct Subsidiaries, together with Uniform Commercial
Code financing statements related to all of the Equity Interests pledged as
security thereunder and certificates representing all of the certificated Equity
Interests of the pledged Subsidiaries and stock powers duly endorsed in blank;

                  (iv) The Security Agreement duly executed by each Borrower
Party, together with Uniform Commercial Code financing statements related
thereto;

                  (v) A Copyright Security Agreement duly executed by each
Borrower Party;

                  (vi) A Patent Security Agreement duly executed by each
Borrower Party;

                  (vii) A Trademark Security Agreement duly executed by each
Borrower Party;

                  (viii) The Fee Letter duly executed by the Borrower;

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<PAGE>

                  (ix) The legal opinion of White & Case LLP, counsel to the
Borrower Parties, addressed to the Lender Group;

                  (x) The duly executed Request for Advance for the initial
Advance of the Loans and the duly executed Request for Issuance of Letter of
Credit for the initial Letter of Credit;

                  (xi) A duly executed Borrowing Base Certificate dated as of
the Agreement Date;

                  (xii) With respect to each Borrower Party, certificates signed
by an Authorized Signatory of such Borrower Party (or, in the case of a Borrower
Party that is a partnership, the general partner of such Borrower Party or, in
the case of a Borrower Party that is a limited liability company, the members or
manager, as appropriate, of such Borrower Party) in substantially the form of
Exhibits L-1 and L-2, including a certificate of incumbency with respect to each
Authorized Signatory of such Person, together with appropriate attachments which
shall include, without limitation, the following: (A) a copy of the Certificate
of Incorporation or Formation of such Person certified to be true, complete and
correct by the Secretary of State of the State of such Person's incorporation or
formation, (B) a true, complete and correct copy of the By-Laws, partnership
agreement or operating agreement of such Person, (C) a true, complete and
correct copy of the resolutions of such Person (or it general partner, members
or manager, as applicable) authorizing the execution, delivery and performance
by such Person of the Loan Documents and the Hedge Agreements and, with respect
to the Borrower, authorizing the borrowings hereunder, (D) certificates of good
standing from each jurisdiction in which such Person does business, (E) copies
of written employment contracts for key management level employees of such
Person, and (F) copies of all shareholders or share purchase agreements relating
to the Equity Interests of such Person;

                  (xiii) The duly executed Management Fees Subordination
Agreement and a true, correct and complete copy of the executed Management
Agreements, and the Lender Group shall have received a certificate of an
Authorized Signatory of the Borrower so stating;

                  (xiv) The duly executed Intercreditor Agreement and a true,
correct and complete copy of the executed Senior Note Documents, and the Lender
Group shall have received a certificate of an Authorized Signatory of the
Borrower so stating

                  (xv) The duly executed Subordination Agreement and a true,
correct and complete copy of the executed Subordinated Note Documents, and the
Lender Group shall have received a certificate of an Authorized Signatory of the
Borrower so stating;

                  (xvi) A true, correct and complete copy of the executed Merger
Agreement, together with all exhibits and schedules thereto, and the Lender
Group shall have received a certificate of an Authorized Signatory of the
Borrower so stating;

                  (xvii) A true, correct and complete copy of the other executed
Merger Documents, and the Lender Group shall have received a certificate of an
Authorized Signatory of the Borrower so stating;

                  (xviii) A certificate of the Secretary or an Assistant
Secretary of the Borrower certifying that attached thereto is a true and
complete copy of resolutions adopted by the Board of Directors of the Borrower
authorizing the execution, delivery and performance of the Senior Note
Documents, the Subordinated Note Documents and the Merger Agreement and the
consummation of the transactions provided for therein;

                                       43

<PAGE>

                  (xix) Certificates of insurance and loss payable endorsements
with respect to the Borrower Parties meeting the requirements of Section 6.5;

                  (xx) Pay-off letters, termination statements, canceled
mortgages and the like required by the Administrative Agent in connection with
the removal of any Liens (other than Permitted Liens) against the assets of the
Borrower Parties after giving effect to the Merger;

                  (xxi) Lien search results with respect to the Target and the
Borrower Parties from all appropriate jurisdictions and filing offices;

                  (xxii) Evidence satisfactory to the Administrative Agent that
the Liens granted pursuant to the Security Documents will be first priority
perfected Liens on the Collateral (subject only to Permitted Liens);

                  (xxiii) Payment of all fees and expenses payable to the
Administrative Agent, the Affiliates of the Administrative Agent, and the
Lenders in connection with the execution and delivery of this Agreement,
including, without limitation, reasonable fees and expenses of counsel to the
Administrative Agent;

                  (xxiv) A flow of funds report duly executed by the Borrower,
which report shall include a statement of all sources and uses of funds on the
Agreement Date (the "Flow of Funds Report");

                  (xxv) The Flow of Funds Report and financial statements of the
Borrower and its Subsidiaries on a consolidated basis as at June 30, 2004, that
collectively evidence, as of the Agreement Date, that a group of investors shall
have made capital contributions to the Borrower in an aggregate amount of at
least $30,000,000;

                  (xxvi) All documentation and other information required by
bank regulatory authorities under applicable "know your customer" and anti-money
laundering rules and regulations, including the USA Patriot Act; and

                  (xxvii) All such other documents as the Administrative Agent
may reasonably request, certified by an appropriate governmental official or an
Authorized Signatory if so requested.

      (b) The Lender Group shall have received evidence satisfactory to them
that no change in the business, assets, management, operations, financial
condition or prospects of the Borrower Parties or the Target shall have occurred
since June 30, 2004, which change has had or is reasonably likely to have a
Materially Adverse Effect, and the Lender Group shall have received a
certificate of an Authorized Signatory of the Borrower so stating.

      (c) The Lender Group shall have received evidence satisfactory to them
that all conditions to the closing of the transactions contemplated by the
Senior Note Documents have been satisfied and that the Initial Securities (as
defined in the Indenture) in the principal face amount of $154,000,000 have been
purchased, and the Lender Group shall have received a certificate of an
Authorized Signatory of the Borrower so stating.

      (d) The Lender Group shall have received evidence satisfactory to them
that all conditions to the closing of the transactions contemplated by the
Subordinated Note Documents have been satisfied and that the Notes (as defined
in the Note Purchase Agreement) have been purchased in the principal amount of
$40,000,000, and the Lender Group shall have received a certificate of an
Authorized Signatory of the Borrower so stating.

                                       44

<PAGE>

      (e) The Lender Group shall have received evidence satisfactory to them
that all Necessary Authorizations, except as set forth on Schedule 5.1(f), are
in full force and effect and are not subject to any pending or threatened
reversal or cancellation, and that no Default exists, after giving effect to the
initial Advance hereunder, and the Lender Group shall have received a
certificate of an Authorized Signatory of the Borrower so stating.

      (f) The Lender Group shall have received evidence satisfactory to them
that the Borrower shall have entered into an employment, confidentiality and
noncompetition agreement (the "Employment Agreement") with Richard Falcone,
which Employment Agreement shall be in form and substance satisfactory to the
Administrative Agent and which Employment Agreement shall be in full force and
effect on the Agreement Date, and the Lender Group shall have received a
certificate of an Authorized Signatory of the Borrower certifying that a true,
correct and complete copy of such Employment Agreement is attached to such
certificate.

      (g) The Lender Group shall have received evidence satisfactory to the
Administrative Agent that the Merger will be consummated on terms satisfactory
to the Administrative Agent immediately following the initial Advance of the
Loans hereunder as of the Agreement Date, and the Lender Group shall have
received a certificate of an Authorized Signatory of the Borrower so stating.

      (h) The Administrative Agent shall have received confirmation that the
original Uniform Commercial Code financing statements signed by the respective
Borrower Parties as debtor and naming the Administrative Agent as secured party
have been duly filed in all appropriate jurisdictions, in such form as shall be
satisfactory to the Administrative Agent.

      (i) The Lender Group shall have received evidence satisfactory to it that
as of the Agreement Date, after giving effect to the borrowings hereunder on the
Agreement Date and the issuance of any Letters of Credit hereunder on the
Agreement Date, Availability shall not be less than $1,000,000 (assuming trade
payables are being paid currently, expenses and liabilities are being paid in
the ordinary course of business and without acceleration of sales, and without
deterioration in working capital).

      Section 4.2 Conditions Precedent to Each Advance. The obligation of the
Lenders to make each Advance, including the initial Advance hereunder (but
excluding Advances, the proceeds of which are to reimburse (i) the
Administrative Agent for Agent Advances or (ii) the Issuing Lender for amounts
drawn under a Letter of Credit), is subject to the fulfillment of each of the
following conditions immediately prior to or contemporaneously with such
Advance:

      (a) All of the representations and warranties of the Borrower Parties
under this Agreement and the other Loan Documents, which, pursuant to Section
5.4, are made at and as of the time of such Advance, shall be true and correct
in all material respects at such time, both before and after giving effect to
the application of the proceeds of the Advance;

      (b) The incumbency of the Authorized Signatories of the Borrower shall be
as stated in the certificate of incumbency contained in the certificate of the
Borrower delivered pursuant to Section 4.1(a) or as subsequently modified and
reflected in a certificate of incumbency delivered to the Administrative Agent
and the Lenders;

      (c) The most recent Borrowing Base Certificate which shall have been
delivered to the Administrative Agent pursuant to Section 7.5(a) shall
demonstrate that, after giving effect to the making of such Advance, no
Overadvance shall exist; and

                                       45

<PAGE>

      (d) There shall not exist on the date of such Advance and after giving
effect thereto, a Default.

The Borrower hereby agrees that the delivery of any Request for Advance
hereunder or any telephonic request for an Advance hereunder shall be deemed to
be the certification of the Authorized Signatory thereof that all of the
conditions set forth in this Section 4.2 have been satisfied. Notwithstanding
the foregoing, if the conditions, or any of them, set forth above are not
satisfied, such conditions may be waived by the requisite Lenders under Section
11.12, and, in any event the Majority Lenders may waive the condition set forth
in Section 4.2(c).

      Section 4.3 Conditions Precedent to Each Letter of Credit. The obligation
of the Issuing Lender to issue each Letter of Credit (including the initial
Letter of Credit) hereunder is subject to the fulfillment of each of the
following conditions immediately prior to or contemporaneously with the issuance
of such Letter of Credit:

      (a) All of the representations and warranties of the Borrower Parties
under this Agreement and the other Loan Documents, which, pursuant to Section
5.4, are made at and as of the time of the issuance of such Letter of Credit,
shall be true and correct in all material respects at such time, both before and
after giving effect to the issuance of such Letter of Credit;

      (b) The incumbency of the Authorized Signatories of the Borrower shall be
as stated in the certificate of incumbency contained in the certificate of the
Borrower delivered pursuant to Section 4.1(a) or as subsequently modified and
reflected in a certificate of incumbency delivered to the Administrative Agent
and the Lenders;

      (c) The most recent Borrowing Base Certificate which shall have been
delivered to the Administrative Agent pursuant to Section 7.5(a) hereof shall
demonstrate that, after giving effect to the making of such Letter of Credit, no
Overadvance shall exist; and

      (d) There shall not exist on the date of issuance of such Letter of
Credit, and after giving effect thereto, a Default.

The Borrower hereby agrees that the delivery of any Request for Issuance of a
Letter of Credit hereunder shall be deemed to be the certification of the
Authorized Signatory thereof that all of the conditions set forth in this
Section 4.3 have been satisfied. Notwithstanding the foregoing, if the
conditions, or any of them, set forth above are not satisfied, such conditions
may be waived by the requisite Lenders under Section 11.12, and, in any event
the Majority Lenders may waive the condition set forth in Section 4.3(c).

                                   ARTICLE 5.

                         REPRESENTATIONS AND WARRANTIES

      Section 5.1 General Representations and Warranties. In order to induce the
Lender Group to enter into this Agreement and to extend the Loans and issue the
Letters of Credit to the Borrower, each Borrower Party hereby represents, and
warrants that:

      (a) Organization; Power; Qualification. Each Borrower Party (i) is a
corporation, partnership or limited liability company duly organized, validly
existing, and in good standing under the laws of its state of incorporation or
formation, (ii) has the corporate or other company power and authority to own or
lease and operate its properties and to carry on its business as now being and
hereafter proposed to be conducted, and (iii) is duly qualified and is in good
standing as a foreign corporation or other company,

                                       46

<PAGE>

and authorized to do business, in each jurisdiction in which the character of
its properties or the nature of its business requires such qualification or
authorization, except where the failure to be so qualified would not reasonably
be expected to have a Materially Adverse Effect.

      (b) Authorization; Enforceability. Each Borrower Party has the power and
has taken all necessary action, corporate or otherwise, to authorize it to
execute, deliver, and perform this Agreement and each of the other Loan
Documents to which it is a party in accordance with the terms thereof and to
consummate the transactions contemplated hereby and thereby. Each of this
Agreement and each other Loan Document to which a Borrower Party is a party has
been duly executed and delivered by such Borrower Party, and is a legal, valid
and binding obligation of such Borrower Party, enforceable in accordance with
its terms except to the extent that the enforceability thereof may be limited by
applicable bankruptcy, insolvency, reorganization or similar laws affecting the
enforcement of creditor's rights generally or by general principles of equity
(regardless of whether such enforcement is considered in a proceeding in equity
or at law).

      (c) Partnerships; Joint Ventures; Subsidiaries. Except as disclosed on
Schedule 5.1(c)-1, no Borrower Party has any Subsidiaries. No Borrower Party is
a partner or joint venturer in any partnership or joint venture other than (i)
the Subsidiaries listed on Schedule 5.1(c)-1 and (ii) the partnerships and joint
ventures (that are not Subsidiaries) listed on Schedule 5.1(c)-2. Schedule
5.1(c)-1 and Schedule 5.1(c)-2 set forth, for each Person set forth thereon, a
complete and accurate statement of (a) the percentage ownership of each such
Person by the applicable Borrower Party, (b) the state or other jurisdiction of
incorporation or formation, as appropriate, of each such Person, (c) each state
in which each such Person is qualified as a corporation to do business on the
Agreement Date and (d) all of each such Person's trade names, trade styles or
doing business forms which such Person has used or under which such Person has
transacted business during the five (5) year period immediately preceding the
Agreement Date.

      (d) Capital Stock and Related Matters. The authorized Equity Interests as
of the Agreement Date of each Borrower Party that is a corporation and the
number of shares of such Equity Interests that are issued and outstanding as of
the Agreement Date are as set forth on Schedule 5.1(d). All of the shares of
such Equity Interests that are issued and outstanding as of the Agreement Date
have been duly authorized and validly issued and are fully paid and
non-assessable. None of such Equity Interests have been issued in material
violation of the Securities Act, or the securities, "Blue Sky" or other
Applicable Laws of any applicable jurisdiction. As of the Agreement Date, the
Equity Interests of each such Borrower Party are owned by the parties listed on
Schedule 5.1(d) in the amounts set forth on such schedule and a description of
the Equity Interests of each such party is listed on Schedule 5.1(d). Except as
described on Schedule 5.1(d), no Borrower Party has outstanding any stock or
securities convertible into or exchangeable for any shares of its Equity
Interests, nor are there any preemptive or similar rights to subscribe for or to
purchase, or any other rights to subscribe for or to purchase, or any options
for the purchase of, or any agreements providing for the issuance (contingent or
otherwise) of, or any calls, commitments, or claims of any character relating
to, any Equity Interests or any stock or securities convertible into or
exchangeable for any Equity Interests. Except as set forth on Schedule 5.1(d),
no Borrower Party is subject to any obligation (contingent or otherwise) to
repurchase or otherwise acquire or retire any shares of its Equity Interests or
to register any shares of its Equity Interests, and there are no agreements
restricting the transfer of any shares of such Borrower Party's Equity Interests
or restricting the ability of any Subsidiary of the Borrower from making
distributions, dividends or other Restricted Payments to the Borrower.

      (e) Compliance with Law, Loan Documents, and Contemplated Transactions.
The execution, delivery, and performance of this Agreement and each of the other
Loan Documents and the Hedge Agreements in accordance with their respective
terms and the consummation of the transactions

                                       47

<PAGE>

contemplated hereby and thereby do not and will not (i) except as set forth on
Schedule 5.1(q), violate any Applicable Law, (ii) conflict with, result in a
breach of, or constitute a default under (A) the certificate of incorporation or
formation or by-laws, partnership agreement or operating agreement of any
Borrower Party or (B) under any material indenture, agreement, or other
instrument to which any Borrower Party is a party or by which any Borrower Party
or any of its properties may be bound in any material respect, or (iii) result
in or require the creation or imposition of any Lien upon or with any Borrower
Party except Permitted Liens.

      (f) Necessary Authorizations. Except as set forth on Schedule 5.1(f), each
Borrower Party has obtained all Necessary Authorizations, and all such Necessary
Authorizations are in full force and effect. None of such Necessary
Authorizations is the subject of any pending or, to the best of each Borrower
Party's knowledge, threatened revocation, by the grantor of the Necessary
Authorization. No Borrower Party is required to obtain any additional Necessary
Authorizations in connection with the execution, delivery, and performance of
this Agreement, any other Loan Document or any Hedge Agreement, in accordance
with their respective terms, or the consummation of the transactions
contemplated hereby or thereby. None of such exceptions disclosed on Schedule
5.1(f), individually or collectively, is reasonably expected to have a
Materially Adverse Effect.

      (g) Title to Properties. Each Borrower Party has good, marketable, and
legal title to, or a valid leasehold interest in, all of its properties and
assets, and none of such properties or assets is subject to any Liens, other
than Permitted Liens.

      (h) Material Contracts. Schedule 5.1(h) contains a complete list, as of
the Agreement Date, of each Material Contract, true, correct and complete copies
of which have been delivered or otherwise made available to the Administrative
Agent. Schedule 5.1(h) further identifies, as of the Agreement Date, each
Material Contract that requires consent to the granting of a Lien in favor of
the Administrative Agent on the rights of any Borrower Party thereunder. No
Borrower is in default in any material respect under or with respect to any
Material Contract to which it is a party or by which it or any of its properties
are bound.

      (i) Labor Matters. Except as disclosed on Schedule 5.1(i): (a) no labor
contract to which any Borrower Party is a party or is otherwise subject is
scheduled to expire prior to the Maturity Date; (b) no Borrower Party has, since
June 30, 2002, taken any action which would have constituted or resulted in a
"plant closing" or "mass layoff" within the meaning of the Federal Worker
Adjustment and Retraining Notification Act of 1988 or any similar applicable
federal, state or local law; and (c) on the Agreement Date (i) no Borrower Party
is a party to any labor dispute (other than any immaterial disputes with such
Borrower Party's employees as individuals and not affecting such Borrower
Party's relations with any labor group or its workforce as a whole), nor, to the
knowledge of the Borrower, is any labor dispute imminent that might have a
Materially Adverse Effect, and (ii) there are no pending or, to each Borrower
Party's knowledge, threatened strikes or walkouts relating to any labor
contracts to which any Borrower Party is a party or is otherwise subject. Except
as set forth on Schedule 5.1(i), none of the employees of any Borrower Party is
a party to any collective bargaining agreement with such Borrower Party.

      (j) Taxes. Except as set forth on Schedule 5.1(j), since January 1, 2002,
all material federal, state and other tax returns of each Borrower Party
required by law to be filed have been duly filed, all such tax returns are true,
complete and correct in all material respects, and all federal, state, and other
taxes (including without limitation, all real estate and personal property,
income, franchise, transfer and gains taxes), all general or special
assessments, and other governmental charges or levies upon each Borrower Party
and any of their respective properties, income, profits, and assets, which are
due and payable, have been paid, except any payment of any of the foregoing
which such Borrower Party, is

                                       48

<PAGE>

currently contesting in good faith by appropriate proceedings and with respect
to which reserves in conformity with GAAP have been provided on the books of
such Borrower Party or are otherwise involving amounts less than or equal to
$10,000. Except as set forth on Schedule 5.1(j), since June 30, 2002, no
adjustment involving amounts in excess of $10,000 relating to any tax returns
has been proposed formally or informally by any Governmental Authority and, to
the knowledge of each Borrower Party, no basis exists for any such adjustment.
The charges, accruals, and reserves on the books of the Borrower Parties in
respect of taxes are, in the reasonable judgment of the Borrower Parties,
adequate. Except as set forth on Schedule 5.1(j), no Borrower Party is currently
being audited, or has knowledge of any pending audit, by the Internal Revenue
Service or any other taxing authority. Except as described in Schedule 5.1(j),
no Borrower Party has executed or filed with the Internal Revenue Service or any
other Governmental Authority any current agreement or other document extending,
or having the effect of extending, the period for assessment or collection of
any current taxes. None of the Borrower Parties are liable for any taxes: (a)
under any agreement (including any tax sharing agreements) or (b) to each
Borrower Party's knowledge, as a transferee. As of the Agreement Date, no
Borrower Party has agreed, or been requested, to make any adjustment under Code
Section 481(a), by reason of a change in accounting method or otherwise.

      (k) Financial Statements. The Borrower Parties and their Subsidiaries have
furnished, or caused to be furnished, to the Lenders (i) the audited financial
statements of the Borrower and its Subsidiaries on a consolidated basis and the
audited financial statements for the Target and its Subsidiaries on a
consolidated basis which are complete and correct in all material respects and
present fairly in accordance with GAAP the respective financial positions of the
Borrower and its Subsidiaries and the Target and its Subsidiaries as at December
31, 2003, and the results of operations for the fiscal year then ended and (ii)
the unaudited financial statements of the Borrower and its Subsidiaries on a
consolidated basis and the unaudited financial statements for the Target and its
Subsidiaries on a consolidated basis which are complete and correct in all
material respects and present fairly in accordance with GAAP, subject to normal
year end adjustments, the respective financial positions of the Borrower and its
Subsidiaries and the Target and its Subsidiaries as at June 30, 2004, and the
results of operations for the fiscal quarter then ended. In addition, the
Borrower Parties shall furnish to the Lenders the balance sheet of the Borrower
and its Subsidiaries on a consolidated basis dated as of June 30, 2004 giving
pro forma effect to the Merger and the borrowings hereunder and under the Senior
Note Documents and the Subordinated Note Documents. The assumptions used in
preparing the pro forma financial statements provided as described in this
Section provide a reasonable basis for presenting the significant effects
directly attributable to the transactions or events described therein, the
related pro forma adjustments give appropriate effect to those assumptions, and
the pro forma columns therein reflect the proper application of those
adjustments to the corresponding historical financial statement amounts. Except
as disclosed in the financial statements provided as described in this Section,
no Borrower Party or any Subsidiary of a Borrower Party has, as of such date,
any material liabilities, contingent or otherwise, required by GAAP of any
Borrower Party or any Subsidiary of a Borrower Party which have not heretofore
been disclosed in writing to the Lenders.

      (l) No Adverse Change. Since June 30, 2004, there has occurred no event
which has had or could reasonably be expected to have a Materially Adverse
Effect.

      (m) Investments and Guaranties. As of the Agreement Date, no Borrower
Party owns any Equity Interests of any Person except as disclosed on Schedules
5.1(c)-1 and 5.1(c)-2, or has outstanding loans or advances to, or guaranties of
the obligations of, any Person in excess of $100,000, except as reflected in the
financial statements referred to in Section 5.1(k) or disclosed on Schedule
5.1(m).

      (n) Liabilities, Litigation, etc. Since June 30, 2004, except for
liabilities incurred in the normal course of business, no Borrower Party has any
material (individually or in the aggregate)

                                       49

<PAGE>

liabilities, direct or contingent required to be disclosed by GAAP, except as
disclosed or referred to in the financial statements referred to in Section
5.1(k) or with respect to the Obligations or Funded Debt under the Senior Note
Documents or the Subordinated Note Documents. As of the Agreement Date, except
as described on Schedules 5.1(n) and 5.1(y)(1) and (2), there is no litigation,
legal or administrative proceeding, investigation, or other action of any nature
pending or, to the knowledge of the Borrower Parties, threatened against or
affecting any Borrower Party, any Subsidiary of any Borrower Party or any of
their respective properties which could reasonably be expected to result in any
judgment against or liability of such Borrower Party in excess of $500,000 or
the loss of any certification or license material to the operation of such
Borrower Party's business. None of such litigation disclosed on Schedules 5.1(n)
and 5.1(y)(1) and (2), individually or collectively, is reasonably expected to
have a Materially Adverse Effect.

      (o) ERISA. Schedule 5.1(o) lists all Plans and separately identifies all
Multiemployer Plans. Copies of all such listed Plans, together with a copy of
the latest IRS/DOL 5500-series form for each such Plan, have been delivered to
the Administrative Agent. Except with respect to Multiemployer Plans, each Plan
intended to be qualified under Code Section 401 has been determined by the IRS
to qualify under Section 401 of the Code, and, to the knowledge of the Borrower
Parties, nothing has occurred since the date of the most recent determination
that would cause the loss of such qualification. Each Borrower Party and each
ERISA Affiliate and each of their respective Plans are in compliance with ERISA
and the Code and no Borrower Party nor any of its ERISA Affiliates has incurred
any accumulated funding deficiency with respect to any such Plan within the
meaning of ERISA or the Code which would reasonably be expected to have a
Materially Adverse Effect. Since January 1, 1997, no Borrower Party or ERISA
Affiliate has incurred any liability to the PBGC in connection with any such
Plan (other than the payment of premiums that are not past due) which would
reasonably be expected to have a Materially Adverse Effect. No Title IV Plan has
any Unfunded Pension Liability which would reasonably be expected to have a
Materially Adverse Effect. No ERISA Event or event described in Section 4062(e)
of ERISA has occurred and is continuing with respect to any such Plan which
would reasonably be expected to have a Materially Adverse Effect. There are no
pending, or to the knowledge of any Borrower Party, threatened material claims
(other than claims for benefits in the normal course and appeals of denied
claims), sanctions, actions or lawsuits, asserted or instituted against any Plan
which would reasonably be expected to have a Materially Adverse Effect. No such
Plan or trust created thereunder, or party in interest (as defined in Section
3(14) of ERISA, or any fiduciary (as defined in Section 3(21) of ERISA), has
engaged in a "prohibited transaction" (as such term is defined in Section 406 of
ERISA or Section 4975 of the Code) which would subject such Plan or any other
Plan of any Borrower Party or any of its ERISA Affiliates, any trust created
thereunder, or any such party in interest or fiduciary, or any party dealing
with any such Plan or any such trust to any material penalty or tax on
"prohibited transactions" imposed by Section 502 of ERISA or Section 4975 of the
Code which would reasonably be expected to have a Materially Adverse Effect.

      (p) Intellectual Property; Licenses; Certifications. Except as set forth
on Schedule 5.1(p), no Borrower Party owns any registered patents, trademarks,
service marks or copyrights, and has no pending registration applications with
respect to any of the foregoing. The Borrower and its Subsidiaries own, possess
or can acquire on reasonable terms, adequate trademarks, trade names and other
rights to inventions, know-how, patents, copyrights, confidential information
and other material intellectual property necessary to conduct the business now
operated by them, or presently employed by them. Except as set forth on Schedule
5.1(p), to the best of the Borrower Parties' knowledge, no material licenses or
certifications are necessary for the operation of the Borrower Parties' business
as it is currently conducted.

      (q) Compliance with Law; Absence of Default. Except as set forth on
Schedule 5.1(q), each Borrower Party is in material compliance with all
Applicable Laws and with all of the provisions of its

                                       50

<PAGE>

certificate of incorporation or formation and by-laws or other governing
documents, and no event has occurred or has failed to occur which has not been
remedied or waived, the occurrence or non-occurrence of which constitutes (i) a
Default, (ii) a default by such Borrower Party under the Senior Note Documents,
(iii) a default by such Borrower Party under the Subordinated Note Documents or
(iv) a default under any other indenture, agreement, or other instrument, or any
judgment, decree, or order to which such Borrower Party is a party or by which
such Borrower Party or any of their respective properties may be bound, in each
case involving $500,000 or more.

      (r) Casualties; Taking of Properties, etc. Since June 30, 2004, neither
the business nor the properties of the Borrower Parties or the Target has been
materially and adversely affected as a result of any fire, explosion,
earthquake, flood, drought, windstorm, accident, embargo, requisition or taking
of property or cancellation of contracts, permits or concessions by any domestic
or foreign government or any agency thereof, riot, activities of armed forces,
or acts of God or of any public enemy which would reasonably be expected to have
a Materially Adverse Effect.

      (s) Accuracy and Completeness of Information. (i) All representations and
warranties in the Loan Documents were, at the time furnished, complete and
correct in all material respects. No fact is currently known to any Borrower
Party which has, or could reasonably be expected to have, a Materially Adverse
Effect. With respect to projections, estimates and forecasts given to the Lender
Group, such projections, estimates and forecasts are based on the Borrower
Parties' good faith assessment of the future of the business at the time made.
The Borrower Parties had a reasonable basis for such assessment at the time
made.

                  (ii) On the Agreement Date, the Offering Circular does not
include any untrue statement of a Appreciable fact or omit to state any
Appreciable fact necessary in order to make the statements therein, in the light
of the circumstances under which they were made, not misleading. The preceding
sentence does not apply to (A) statements in, or omissions from, the section of
the Offering Circular entitled "Description of the New Working Capital Facility"
and (B) statements in or omissions in the Offering Circular that are based upon
written information furnished to the Borrower by Credit Suisse First Boston LLC
or Morgan Stanley & Co. Incorporated specifically for use therein. The
provisions of the Offering Circular contain a true and correct description of
(Y) all of the Appreciable secured and unsecured Funded Debt and other
Appreciable obligations of the Borrower Parties as of June 30, 2004, and (Z) all
of the Appreciable Investments of the Borrower Parties as of June 30, 2004.

      (t) Compliance with Regulations T, U, and X. No Borrower Party is engaged
principally in or has as one of its important activities in the business of
extending credit for the purpose of purchasing or carrying, and no Borrower
Party owns or presently intends to acquire, any "margin security" or "margin
stock" as defined in Regulations T, U and X of the Board of Governors of the
Federal Reserve System (herein called "Margin Stock"). None of the proceeds of
the Loans will be used, directly or indirectly, for the purpose of purchasing or
carrying any Margin Stock or for any other purpose which might constitute this
transaction a "purpose credit" within the meaning of said Regulations T, U and
X. No Borrower Party or any bank acting on its behalf has taken or will take any
action which might cause this Agreement or any other Loan Documents to violate
Regulation T, U or X or any other regulation of the Board of Governors of the
Federal Reserve System or to violate the SEA, in each case as now in effect or
as the same may hereafter be in effect. If so requested by the Administrative
Agent, the Borrower Parties will furnish the Administrative Agent with (i) a
statement or statements in conformity with the requirements of Federal Reserve
Form U-1 or Form G-3 referred to in Regulation U of said Board of Governors and
(ii) other documents evidencing its compliance with the margin regulations,
including without limitation an opinion of counsel in form and substance
satisfactory to the Administrative Agent. Neither the making of the Loans nor
the use of proceeds thereof will violate, or be inconsistent with, the
provisions of Regulation T, U or X of said Board of Governors.

                                       51

<PAGE>

      (u) Solvency. As of the Agreement Date and after giving effect to the
transactions contemplated by the Senior Note Documents, the Subordinated Note
Documents, the Merger Documents, the Merger and the transactions contemplated by
the Loan Documents (i) the assets, tangible and intangible, of Borrower Parties,
at a fair valuation on a going concern basis, will exceed their debt on a
consolidated basis; (ii) the capital of each Borrower Party will not be
unreasonably small to conduct its business; and (iii) no Borrower Party will
have incurred debts, or have intended to incur debts, beyond its ability to pay
such debts as they mature. For purposes of this Section, "debt" shall mean any
liability on a claim, and "claim" shall mean (A) the right to payment, whether
or not such right is reduced to judgment, liquidated, unliquidated, fixed,
contingent, matured, unmatured, undisputed, legal, equitable, secured or
unsecured, or (B) the right to an equitable remedy for breach of performance if
such breach gives rise to a right to payment, whether or not such right to an
equitable remedy is reduced to judgment, fixed, contingent, matured, unmatured,
undisputed, secured or unsecured.

      (v) Insurance. The Borrower Parties have insurance meeting the
requirements of Section 6.5, and such insurance policies are in full force and
effect. As of the Agreement Date, all insurance maintained by the Borrower
Parties is fully described on Schedule 5.1(v).

      (w) Broker's or Finder's Commissions. Except as set forth on Schedule
5.1(w), no broker's or finder's fee or commission will be payable with respect
to the execution and delivery of this Agreement and the other Loan Documents,
and no other similar fees or commissions will be payable by the Borrower Parties
for any other services rendered to the Borrower Parties ancillary to the credit
transactions contemplated herein.

      (x) Real Property. All real property leased by each Borrower Party as of
the Agreement Date, and the name of the lessor of such real property, is set
forth in Schedule 5.1(x)-1. The leases of each Borrower Party are valid,
enforceable against the Borrower Party and in full force and effect, and have
not been modified or amended, except as otherwise set forth in Schedule
5.1(x)-1. There is no default or condition which, with the passage of time or
the giving of notice, or both, would constitute a material default on the part
of any Borrower Party under such leases and the Borrower Parties have paid all
rents and other charges due and payable under such leases. All real property
owned by each Borrower Party as of the Agreement Date is set forth in Schedule
5.1(x)-2. As of the Agreement Date, no Borrower Party owns, leases or uses any
real property other than as set forth on Schedule 5.1(x)-1 or 2. Each Borrower
Party owns good and marketable fee simple title to all of its owned real
property, and none of its respective owned real property is subject to any
Liens, except Permitted Liens.

      (y) Environmental Matters.

                  (i) Except as is described on Schedule 5.1(y) - 1, each
Borrower Party is in material compliance with all applicable Environmental Laws.

                  (ii) Except as is described on Schedule 5.1(y) - 2, no
Borrower Party has received from any Governmental Authority any written
complaint, or written notice of violation or alleged violation, investigation or
written advisory action or written notice of potential liability regarding
matters of environmental protection or permit compliance under applicable
Environmental Laws that would reasonably be expected to have an Materially
Adverse Effect with regard to the Properties, nor is any Borrower Party aware
that any such notice is pending.

      (z) OSHA. All of the Borrower Parties' operations are conducted in
compliance, in all material respects, with all applicable rules and regulations
promulgated by the Occupational Safety and Health Administration of the United
States Department of Labor.

                                       52

<PAGE>

      (aa) Name of Borrower Parties. Except as disclosed on Schedule 5.1(c) - 1,
no Borrower Party has changed its name within the preceding five (5) years from
the Agreement Date, nor has any Borrower Party transacted business under any
other name or trade name.

      (bb) Investment Company Act; Public Utility Holding Company Act. No
Borrower Party is required to register under the provisions of the Investment
Company Act of 1940, as amended, and neither the entering into or performance by
the Borrower Parties of this Agreement nor the issuance of any Notes violates
any provision of such Act or requires any consent, approval, or authorization
of, or registration with, any governmental or public body or authority pursuant
to any of the provisions of such Act. No Borrower Party is a "holding company"
or a "subsidiary company" of a "holding company", or an "affiliate" of a
"holding company" or of a "subsidiary company" of a "holding company", as such
terms are defined in the Public Utility Holding Company Act of 1935, as amended.

      (cc) Holding Company Status. The Borrower does not own or lease, directly
or indirectly, any real, personal, intangible or tangible property of any
nature, other than the Equity Interests of its Subsidiaries. The Borrower does
not conduct, transact or otherwise engage in any material business or operations
other than those incidental to the ownership of such Equity Interests of its
Subsidiaries. The Borrower does not have any material obligations or liabilities
other than under the Loan Documents, the Senior Note Documents and the
Subordinated Note Documents.

      (dd) Anti-Terrorism Laws.

                  (i) Anti-Terrorism Laws. No Borrower Party is in violation of
any Anti-Terrorism Law or engages in or conspires to engage in any transaction
that evades or avoids, or has the purpose of evading or avoiding, or attempts to
violate, any of the prohibitions set forth in any Anti-Terrorism Law; provided
that no representation is made herein as to a Person that may use a Borrower
Party's telephone services.

                  (ii) Executive Order No. 13224. No Borrower Party is any of
the following (each a "Blocked Person"):

                        (1) a Person that is listed in the annex to, or is
otherwise subject to the provisions of, Executive Order No. 13224;

                        (2) a Person controlled by, or acting for or on behalf
of, any Person that is listed in the annex to, or is otherwise subject to the
provisions of, Executive Order No. 13224;

                        (3) a Person or entity with which any bank or other
financial institution is prohibited from dealing or otherwise engaging in any
transaction by any Anti-Terrorism Law;

                        (4) a Person or entity that commits, threatens or
conspires to commit "terrorism" as defined in Executive Order No. 13224; or

                        (5) a Person or entity that is named as a "specially
designated national" on the most current list published by OFAC at its official
website or any replacement website or other replacement official publication of
such list.

      Section 5.2 Representations and Warranties Relating to Accounts. With
respect to all Accounts of each Borrower Party, such Borrower Party hereby
warrants and represents to the Lender Group that such Accounts are legally valid
and binding obligations of Account Debtors created by the

                                       53
<PAGE>

sale and delivery of Inventory or the rendition of services to such Account
Debtors in the ordinary course of such Borrower Party's business, subject to
offsets and disputes in the ordinary course of business. As to each Account that
is identified by such Borrower Party as an Eligible Account in a Borrowing Base
Certificate submitted to the Administrative Agent by the Borrower, to the best
of the Borrower's knowledge, such Account is not ineligible by virtue of one or
more of the excluding criteria set forth in the definition of Eligible Accounts.

      Section 5.3 Representations and Warranties Relating to Inventory. With
respect to all Eligible Inventory, the Administrative Agent may rely upon all
statements, warranties, or representations made in any Borrowing Base
Certificate in determining the classification of such Inventory and in
determining which items of Inventory listed in such Borrowing Base Certificate
meet the requirements of eligibility.

      Section 5.4 Survival of Representations and Warranties, etc. All
representations and warranties made under this Agreement and the other Loan
Documents shall be deemed to be made, and shall be true and correct, at and as
of the Agreement Date (after giving effect to the Merger) and on the date of
each Advance or issuance of a Letter of Credit hereunder, except to the extent
previously fulfilled in accordance with the terms of this Agreement or the other
Loan Documents and to the extent subsequently inapplicable. All representations
and warranties made under this Agreement and the other Loan Documents shall
survive, and not be waived by, the execution hereof by the Lender Group, or any
of them, any investigation or inquiry by any member of the Lender Group, or the
making of any Advance or the issuance of any Letter of Credit under this
Agreement.

                                   ARTICLE 6.

                                GENERAL COVENANTS

      Until the later of the date the Obligations are repaid in full or the date
the Borrower no longer has the right to borrow, or have Letters of Credit
issued, hereunder (whether or not the conditions to borrowing have been or can
be fulfilled), and unless the Majority Lenders shall otherwise give their prior
consent in writing:

      Section 6.1 Preservation of Existence and Similar Matters. Each Borrower
Party will (i) except as expressly permitted by Section 8.7, preserve and
maintain its existence, rights, franchises, licenses, and privileges in its
jurisdiction of incorporation or organization including, without limitation, all
Necessary Authorizations, and (ii) qualify and remain qualified and authorized
to do business in each jurisdiction in which the character of its properties or
the nature of its business requires such qualification or authorization in the
case of (i) or (ii) where the failure to do so would not have an Materially
Adverse Effect on a consolidated basis.

      Section 6.2 Compliance with Applicable Law. Each Borrower Party will
comply, in all material respects, with the requirements of all Applicable Law.

      Section 6.3 Maintenance of Properties. Each Borrower Party will maintain
or cause to be maintained in the ordinary course of business in good repair,
working order and condition, normal wear and tear and disposal of obsolete
equipment excepted, all properties owned by it except where the failure to do so
would not reasonably be expected to have an Materially Adverse Effect.

      Section 6.4 Accounting Methods and Financial Records. Each Borrower Party
will maintain a system of accounting established and administered in accordance
with GAAP, and will keep adequate records and books of account in which complete
entries will be made in accordance with such accounting

                                       54
<PAGE>

principles consistently applied and reflecting all transactions required to be
reflected by such accounting principles.

      Section 6.5 Insurance. Each Borrower Party will maintain insurance
including, but not limited to, public liability, property insurance,
comprehensive general liability, product liability, business interruption and
fidelity coverage insurance, in such amounts and against such risks as would be
customary for companies in the same industry and of comparable size as the
Borrower Parties from financially sound and reputable insurance companies having
and maintaining an A.M. Best rating of "A" or better and being in a size
category of VI or larger or otherwise acceptable to the Administrative Agent. In
addition to the foregoing, each Borrower Party further agrees to maintain and
pay for insurance upon all goods constituting Collateral wherever located, in
storage or in transit in vehicles, vessels or aircraft, including goods
evidenced by documents, covering casualty, hazard, public liability and such
other risks and in such amounts as would be customary for companies in the same
industry and of comparable size as the Borrower Parties, from financially sound
and reputable insurance companies having and maintaining an A.M. Best rating of
"A" or better and being in a size category of VI or larger or otherwise
acceptable to the Administrative Agent to insure the Lender Group's interest in
such Collateral. All such property insurance policies shall name the
Administrative Agent as loss payee and all liability insurance policies shall
name the Administrative Agent as additional insured. Each Borrower Party shall
deliver the original certificates of insurance evidencing that the required
insurance is in force together with satisfactory lender's loss payable and
additional insured, as applicable, endorsements. Each policy of insurance or
endorsement shall contain a clause requiring the insurer to give not less than
thirty (30) days' prior written notice to the Administrative Agent in the event
of cancellation or modification of the policy for any reason whatsoever and a
clause that the interest of the Administrative Agent shall not be impaired or
invalidated by any act or neglect of any Borrower Party or owner of the
Collateral nor by the occupation of the premises for purposes more hazardous
than are permitted by said policy. If any Borrower Party fails to provide and
pay for such insurance, the Administrative Agent may, after notice, at the
Borrower's expense, procure the same, but shall not be required to do so. Each
Borrower Party agrees to deliver to the Administrative Agent, promptly as
rendered, true copies of all material reports made in any reporting forms to
insurance companies.

      Section 6.6 Payment of Taxes and Claims. Each Borrower Party will pay and
discharge all material taxes, assessments, and governmental charges or levies
imposed upon it or its income or profit or upon any properties belonging to it
prior to the date on which penalties attach thereto, and all lawful claims for
labor, materials and supplies which have become due and payable and which by law
have or may become a Lien upon any of its Property; except that, no such tax,
assessment, charge, levy, or claim need be paid which is being contested in good
faith by appropriate proceedings and for which adequate reserves shall have been
set aside on the appropriate books, but only so long as such tax, assessment,
charge, levy, or claim does not become a Lien or charge other than a Permitted
Lien and no foreclosure, distraint, sale, or similar proceedings shall have been
commenced and remain unstayed for a period thirty (30) days after such
commencement. Each Borrower Party shall timely file all material information
returns required by federal, state, or local tax authorities.

      Section 6.7 Visits and Inspections. Each Borrower Party will permit
representatives of the Administrative Agent to (a) visit and inspect the
properties of the Borrower Parties during normal business hours, (b) inspect and
make extracts from and copies of the Borrower Parties' books and records, and
(c) discuss with the Borrower Parties' respective principal officers the
Borrower Parties' businesses, assets, liabilities, financial positions, results
of operations, and business prospects relating to the Borrower Parties. Any
other member of the Lender Group may, at its expense, accompany the
Administrative Agent on any regularly scheduled visit (or at any time that a
Default exists any visit regardless of whether it is regularly scheduled) to the
Borrower Parties' properties.

                                       55
<PAGE>

      Section 6.8 Conduct of Business. Each Borrower Party shall continue to
engage in business of the same general type or incidental thereto as conducted
by it as of the Agreement Date.

      Section 6.9 ERISA. Each Borrower Party shall at all times make, or cause
to be made, prompt payment of contributions required to meet the minimum funding
standards set forth in ERISA with respect to each Borrower Party's and its ERISA
Affiliates' Plans; furnish to the Administrative Agent, promptly upon the
Administrative Agent's request therefor, copies of any annual report required to
be filed pursuant to ERISA in connection with each such Plan of each Borrower
Party and its ERISA Affiliates; notify the Administrative Agent as soon as
practicable of any ERISA Event; and furnish to the Administrative Agent,
promptly upon the Administrative Agent's request therefor, correspondence and
filings with governmental agencies or the Plan's actuaries or accountants as may
be reasonably requested by the Administrative Agent with respect to an ERISA
Event.

      Section 6.10 Lien Perfection. Each Borrower Party agrees to take such
action as may be required to perfect or continue the perfection of the
Administrative Agent's (on behalf of, and for the benefit of, the Lender Group)
security interest in the Collateral. Each Borrower Party hereby authorizes the
Administrative Agent to file any such financing statement on such Borrower
Party's behalf describing the Collateral as "all assets of the debtor" or "all
personal property of the debtor."

      Section 6.11 Location of Collateral. All Collateral, other than Inventory
in transit, Inventory sold in the ordinary course of business and equipment
moved in the ordinary course of business, will at all times be kept by the
Borrower Parties at one or more of the business locations of the Borrower
Parties set forth in Schedule 6.11. The Inventory shall not, without the prior
written approval of the Administrative Agent, be moved from the locations set
forth on Schedule 6.11 except as permitted in the immediately preceding sentence
and prior to an Event of Default, (i) sales or other dispositions of assets
permitted pursuant to Section 8.7 and (ii) the storage of Inventory at locations
within the continental US other than those specified in the first sentence of
this Section 6.11 if (A) the Borrower gives the Administrative Agent written
notice of the new storage location at least thirty (30) days prior to storing
Inventory at such location, (B) the Lender Group's security interest in such
Inventory is and continues to be a duly perfected, first priority Lien thereon,
(C) neither any Borrower Party's nor the Administrative Agent's right of entry
upon the premises where such Inventory is stored or its right to remove the
Inventory therefrom, is in any way restricted, (D) the owner of such premises,
and any bailee, warehouseman or similar party that will be in possession of such
Inventory, shall have executed and delivered to the Administrative Agent a
Collateral Access Agreement, and (E) all negotiable documents and receipts in
respect of any Collateral maintained at such premises are promptly delivered to
the Administrative Agent and any non-negotiable documents and receipts in
respect of any Collateral maintained at such premises are issued to the
Administrative Agent and promptly delivered to the Administrative Agent.

      Section 6.12 Protection of Collateral. All insurance expenses and expenses
of protecting, storing, warehousing, insuring, handling, maintaining and
shipping the Collateral (including, without limitation, all rent payable by any
Borrower Party to any landlord of any premises where any of the Collateral may
be located), and any and all excise, property, sales, and use taxes imposed by
any state, federal, or local authority on any of the Collateral or in respect of
the sale thereof, shall be borne and paid by the Borrower Parties. If the
Borrower Parties fail to promptly pay any portion thereof when due, the Lenders
may, at their option, but shall not be required to, make a Prime Rate Advance
for such purpose and pay the same directly to the appropriate Person. The
Borrower agrees to reimburse the Lenders promptly therefor with interest
accruing thereon daily at the Default Rate provided in this Agreement. All sums
so paid or incurred by the Lenders for any of the foregoing and all reasonable
costs and expenses (including attorneys' fees, legal expenses, and court costs)
which the Lenders may incur in enforcing or protecting the Lien on or rights and
interest in the Collateral or any of their rights or remedies under this or any
other agreement between the parties hereto or in respect of any of the
transactions to be had

                                       56
<PAGE>

hereunder until paid by the Borrower to the Lenders with interest at the Default
Rate, shall be considered Obligations owing by the Borrower to the Lenders
hereunder. Such Obligations shall be secured by all Collateral and by any and
all other collateral, security, assets, reserves, or funds of the Borrower
Parties in or coming into the hands or inuring to the benefit of the Lenders.
Neither the Administrative Agent nor the Lenders shall be liable or responsible
in any way for the safekeeping of any of the Collateral or for any loss or
damage thereto (except for reasonable care in the custody thereof while any
Collateral is in the Lenders' actual possession) or for any diminution in the
value thereof, or for any act or default of any warehouseman, carrier,
forwarding agency, or other person whomsoever, but the same shall be at the
Borrower Parties' sole risk.

      Section 6.13 Assignments and Records of Accounts. If so requested by the
Administrative Agent following an Event of Default, each Borrower Party shall
execute and deliver to the Administrative Agent, for the benefit of the Lender
Group, formal written assignments of all of the Accounts daily, which shall
include all Accounts that have been created since the date of the last
assignment, together with copies of invoices or invoice registers related
thereto. Each Borrower Party shall keep accurate and complete records of the
Accounts and all payments and collections thereon.

      Section 6.14 Administration of Accounts.

      (a) The Administrative Agent retains the right after the occurrence and
during the continuance of an Event of Default to notify the Account Debtors that
the Accounts have been assigned to the Administrative Agent, for the benefit of
the Lender Group, and to collect the Accounts directly in its own name and to
charge the collection costs and expenses, including attorneys' fees, to the
Borrower. The Administrative Agent has no duty to protect, insure, collect or
realize upon the Accounts or preserve rights in them. Each Borrower Party
irrevocably makes, constitutes and appoints the Administrative Agent as such
Borrower Party's true and lawful attorney and agent-in-fact to endorse such
Borrower Party's name on any checks, notes, drafts or other payments relating
to, the Accounts which come into the Administrative Agent's possession or under
the Administrative Agent's control as a result of its taking any of the
foregoing actions. Additionally, the Administrative Agent, for the benefit of
the Lender Group, shall have the right to collect and settle or adjust all
disputes and claims directly with the Account Debtor and to compromise the
amount or extend the time for payment of the Accounts upon such terms and
conditions as the Administrative Agent may deem advisable, and to charge the
deficiencies, reasonable costs and expenses thereof, including attorney's fees,
to the Borrower.

      (b) If an Account includes a charge for any tax payable to any
governmental taxing authority, the Administrative Agent on behalf of the Lenders
is authorized, in its sole discretion, to pay the amount thereof to the proper
taxing authority for the account of the applicable Borrower Party and to make a
Prime Rate Advance to the Borrower to pay therefor. The Borrower Parties shall
notify the Administrative Agent if any Account includes any tax due to any
governmental taxing authority and, in the absence of such notice, the
Administrative Agent shall have the right to retain the full proceeds of the
Account and shall not be liable for any taxes to any governmental taxing
authority that may be due by any Borrower Party by reason of the sale and
delivery creating the Account.

      (c) After a Default has occurred and is continuing, any of the
Administrative Agent's officers, employees or agents shall have the right, at
any time or times hereafter, in the name of the Lenders, or any designee of the
Lenders or the Borrower Parties, to verify the validity, amount or other matter
relating to any Accounts by mail, telephone, telegraph or otherwise. The
Borrower Parties shall cooperate fully with the Administrative Agent and the
Lenders in an effort to facilitate and promptly conclude any such verification
process.

                                       57
<PAGE>

      Section 6.15 Deposit Accounts.

      (a) After an Event of Default has occurred and is continuing, the Borrower
Parties shall take all steps to ensure that all of their Account Debtors and all
of their credit card processors forward all items of payment to deposit accounts
subject to a Control Agreement. After an Event of Default has occurred and is
continuing, upon the request of the Administrative Agent, the Borrower Parties
shall cause each of their credit card processors to enter into an agreement, in
form and substance satisfactory to the Administrative Agent, with the
Administrative Agent and the applicable Borrower Party pursuant to which the
applicable Borrower Party shall irrevocably instruct such credit card processor
to forward all items of payment owing to the Borrower Parties directly to a
deposit account subject to a Control Agreement.

      (b) After an Event of Default has occurred and is continuing, in the event
that any Borrower Party shall at any time receive any payments described above
directly or shall receive any other funds representing proceeds of the
Collateral, such Borrower Party shall hold the same as trustee for the
Administrative Agent, shall segregate such remittances from its other assets,
and shall promptly deposit the same into a deposit account subject to a Control
Agreement. All cash, cash equivalents, checks, notes, drafts or similar items of
payment (including, without limitation, from the sale of any assets under
Section 8.7(b) or otherwise or constituting insurance or condemnation proceeds)
received by any Borrower Party shall be deposited into a deposit account subject
to a Control Agreement promptly upon receipt thereof by such Borrower Party.

      (c) As of the Agreement Date, all bank accounts and investment accounts of
the Borrower Parties are listed on Schedule 6.15 and such Schedule designates
which such accounts are deposit accounts. After an Event of Default has occurred
and is continuing, no Borrower Party shall open any other deposit account unless
the depository bank for such account shall have entered into a Control Agreement
with the Administrative Agent. In addition, no Borrower Party shall maintain a
balance in excess of the amount necessary to cover outstanding checks drawn on
such account in any other bank account or investment account (each a
"Non-Depository Account") unless and until such Borrower Party has delivered to
the Administrative Agent a Control Agreement executed by such Borrower Party,
the Administrative Agent and the financial institution where such account is
located.

      Section 6.16 Further Assurances. Each Borrower Party will promptly cure,
or cause to be cured, defects in the creation and issuance of any Notes and the
execution and delivery of the Loan Documents (including this Agreement) and any
Hedge Agreements, resulting from any act or failure to act by any Borrower Party
or any employee or officer thereof. Each Borrower Party at its expense will
promptly execute and deliver to the Administrative Agent and the Lenders, or
cause to be executed and delivered to the Administrative Agent and the Lenders,
all such other and further documents, agreements, and instruments in compliance
with or accomplishment of the covenants and agreements of the Borrower Parties
in the Loan Documents (including this Agreement) and the Hedge Agreements, or to
correct any omissions in the Loan Documents or any Hedge Agreements, or more
fully to state the obligations set out herein or in any of the Loan Documents or
the Hedge Agreements, or to obtain any consents, all as may be necessary or
appropriate in connection therewith as may be reasonably requested.

      Section 6.17 Broker's Claims. Each Borrower Party hereby indemnifies and
agrees to hold each member of the Lender Group harmless from and against any and
all losses, liabilities, damages, costs and expenses which may be suffered or
incurred by such member of the Lender Group in respect of any claim, suit,
action or cause of action now or hereafter asserted by a broker or any Person
acting in a similar capacity arising from or in connection with the execution
and delivery of this Agreement or any other Loan Document or Hedge Agreement or
the consummation of the transactions contemplated herein or therein. This
Section 6.17 shall survive termination of this Agreement.

                                       58
<PAGE>

      Section 6.18 Indemnity. Each Borrower Party will indemnify and hold
harmless each Indemnified Person from and against any and all claims,
liabilities, investigations, losses, damages, actions, demands, penalties,
judgments, suits, investigations and, to the extent provided in Section 11.2,
costs, expenses (including fees and expenses of experts, agents, consultants and
counsel) and disbursements, in each case, of any kind or nature (whether or not
the Indemnified Person is a party to any such action, suit or investigation)
whatsoever which may be imposed on, incurred by, or asserted against an
Indemnified Person resulting from any breach or alleged breach by the Borrower
Parties of any representation or warranty made hereunder, or otherwise in any
way relating to or arising out of the Commitments, this Agreement, the other
Loan Documents, the Hedge Agreements or any other document contemplated by this
Agreement, the making, administration or enforcement of the Loan Documents and
the Loans or any Hedge Agreements, any transaction contemplated hereby or any
related matters unless, with respect to any of the above, such Indemnified
Person is determined by a final non-appealable judgment of a court of competent
jurisdiction to have acted or failed to act with gross negligence or willful
misconduct. NO INDEMNIFIED PERSON SHALL BE RESPONSIBLE OR LIABLE TO ANY OTHER
PARTY TO ANY LOAN DOCUMENT, ANY SUCCESSOR, ASSIGNEE OR THIRD PARTY BENEFICIARY
OR SUCH PERSON OR ANY OTHER PERSON ASSERTING CLAIMS DERIVATIVELY THROUGH SUCH
PARTY, FOR INDIRECT, PUNITIVE, EXEMPLARY OR CONSEQUENTIAL DAMAGES WHICH MAY BE
ALLEGED AS A RESULT OF CREDIT HAVING BEEN EXTENDED, SUSPENDED OR TERMINATED
UNDER ANY LOAN DOCUMENT OR AS A RESULT OF ANY OTHER TRANSACTION CONTEMPLATED
HEREUNDER OR UNDER ANY OTHER LOAN DOCUMENT. This Section 6.18 shall survive
termination of this Agreement.

      Section 6.19 Environmental Matters.

      (a) Each Borrower Party shall comply in all material respects with the
Environmental Laws and shall notify the Administrative Agent within thirty (30)
days in the event of any discharge or discovery of any Hazardous Materials at,
upon, under or within the Properties in amounts that require material
remediation. Each Borrower Party shall forward to the Administrative Agent
copies of all documents alleging a violation of Environmental Laws, all
responses thereto and all documents submitted to environmental agencies relative
to remediation of Hazardous Materials on the Properties, in each case, within
thirty (30) days of receipt, delivery or submission (as the case may be) of the
same.

      (b) The Borrower Parties will not use or permit any other party to use any
Hazardous Materials on their premises except such materials as are used in the
Borrower Parties' normal course of business, maintenance and repairs, and then
only in material compliance with all applicable Environmental Laws. The Borrower
Parties shall not install in the Property friable asbestos or any substance
containing asbestos and deemed hazardous by an Applicable Law respecting such
material.

      (c) Each Borrower Party shall at all times indemnify and hold harmless the
Lender Group against and from any and all claims, suits, actions, debts,
damages, costs, losses, obligations, judgments, charges, and expenses, or any
nature whatsoever under or on account of the Environmental Laws including the
assertion of any lien thereunder, with respect to:

                  (i) any discharge of Hazardous Materials, the threat of a
discharge of any Hazardous Materials or the presence of any Hazardous Materials
affecting the Properties whether or not the same originates or emanates from the
Properties or any contiguous real estate including any loss of value of the
Properties as a result of any of the foregoing;

                  (ii) any costs of removal or remedial action incurred by the
US government or any costs incurred by any other person or damages from injury
to, destruction of, or loss of natural

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resources, including reasonable costs of assessing such injury, destruction or
loss incurred pursuant to any Environmental Laws;

                  (iii) liability for personal injury or property damage arising
under any statutory or common law tort theory (including without limitation
damages assessed) for the maintenance of a public or private nuisance or for the
carrying on of an abnormally dangerous activity at or caused by any Borrower
Party near the Properties; or

                  (iv) any other environmental matter affecting the Properties
within the jurisdiction of the Environmental Protection Agency, any other
federal agency, or any state or local environmental agency.

      (d) In the event of any discharge or discovery by any Borrower Party of
any Hazardous Materials at, upon, under or within the Properties in amounts that
require remediation by any Borrower Party, if the applicable Borrower Party
fails to begin the remediation within thirty (30) days after notice to the
Administrative Agent, the Administrative Agent may at its election, but without
the obligation to do so, give such notices or cause such work to be performed at
the Properties or take any and all other actions as the Administrative Agent
shall deem necessary or advisable in order to abate the discharge of such
Hazardous Material, remove such Hazardous Material or cure such Borrower Party's
noncompliance.

      (e) All of the representations, warranties, covenants and indemnities of
this Section 6.19 and Section 5.1(y) shall survive the termination of this
Agreement and the repayment of the Obligations and shall survive the transfer of
any or all right, title and interest in and to the Properties by the Borrower
Parties or any Subsidiary to any party, whether or not affiliated with the
Borrower Parties.

      Section 6.20 Formation of Subsidiaries. (a) At the time of the formation
of any direct or indirect Subsidiary of the Borrower after the Agreement Date or
the acquisition of any direct or indirect Subsidiary of the Borrower after the
Agreement Date, except as provided in Section 6.20(b), the parent Borrower or
Borrower Party, as appropriate, shall (i) cause such new Subsidiary to provide
to the Administrative Agent, for the benefit of the Lender Group, a joinder and
supplement to this Agreement substantially in the form of Exhibit M attached
hereto (each a "Guaranty Supplement"), pursuant to which such new Subsidiary
shall agree to join as a Guarantor of the Obligations under Article 3 and as a
Borrower Party under this Agreement, a supplement to the Security Agreement, and
such other security documents, together with appropriate Uniform Commercial Code
financing statements, all in form and substance reasonably satisfactory to the
Administrative Agent, (ii) provide to the Administrative Agent, for the benefit
of the Lender Group, a pledge agreement and appropriate certificates and powers
or Uniform Commercial Code financing statements, pledging all direct or
beneficial ownership interest in such new Subsidiary, in form and substance
reasonably satisfactory to the Administrative Agent; provided, however, that,
except as otherwise provided in Section 6.20(b), with respect to any new Foreign
Subsidiary, such pledge shall be limited to sixty-six and two-thirds percent
(66.67%) of the Equity Interests of such Foreign Subsidiary and (iii) provide to
the Administrative Agent, for the benefit of the Lender Group, all other
documentation, including one or more opinions of counsel satisfactory to the
Administrative Agent, which in its reasonable opinion is appropriate with
respect to such formation and the execution and delivery of the applicable
documentation referred to above.

      (b) If, at the time of formation or acquisition of any direct or indirect
Foreign Subsidiary of the Borrower after the Agreement Date or following a
change in the relevant sections of the Code or the regulations, rules, rulings,
notices or other official pronouncements issued or promulgated thereunder,
counsel for the Borrower reasonably acceptable to the Administrative Agent does
not, within thirty (30) days after a request from the Administrative Agent,
deliver evidence, in form and substance reasonably

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<PAGE>

satisfactory to the Administrative Agent and the Borrower, that (i) a pledge of
more than sixty-six and two-thirds percent (66 2/3%) of the total combined
voting power of all classes of capital stock of such Foreign Subsidiary entitled
to vote, (ii) the entering into by such Foreign Subsidiary of a security
agreement in substantially the form of the Security Agreement and (iii) the
entering into by such Foreign Subsidiary of a guaranty in substantially the form
of Article 3, in any such case, would cause the undistributed earnings of such
Foreign Subsidiary as determined for Federal income tax purposes to be treated
as a deemed dividend to such Foreign Subsidiary's United States parent for
Federal income tax purposes, then (A) in the case of a failure to deliver the
evidence described in clause (i) above, that portion of such Foreign
Subsidiary's outstanding capital stock so issued by such Foreign Subsidiary not
theretofore pledged pursuant to the Pledge Agreement shall be pledged to the
Administrative Agent for the benefit of the Lender Group pursuant to the Pledge
Agreement (or another pledge agreement in substantially similar form, if
needed), (B) in the case of a failure to deliver the evidence described in
clause (ii) above, such Foreign Subsidiary shall execute and deliver the
Security Agreement (or another security agreement in substantially similar form,
if needed), granting the Lender Group a security interest in all of such Foreign
Subsidiary's assets and securing the Obligations and, in the event a Guaranty
Supplement shall have been executed by such Foreign Subsidiary, the obligations
of such Foreign Subsidiary thereunder, and (C) in the case of a failure to
deliver the evidence described in clause (iii) above, such Foreign Subsidiary
shall execute and deliver the Guaranty Supplement (or a guaranty in
substantially similar form as the guaranty under Article 3, if needed),
guaranteeing the Obligations, in each case to the extent that the entering into
such Security Agreement or Guaranty Supplement is permitted by the laws of the
respective foreign jurisdiction and with all documents delivered pursuant to
this Section 6.20(b) to be in form and substance reasonably satisfactory to the
Administrative Agent.

      (c) Any document, agreement or instrument executed or issued pursuant to
this Section 6.20 shall be a "Loan Document" for purposes of this Agreement.

      Section 6.21 Post Closing Conditions. The Borrower shall perform or cause
to be performed the following:

      (a) No later than thirty (30) days from the Agreement Date, the Borrower
shall deliver duly executed Collateral Access Agreements with respect to the
following locations of the Borrower Parties: (i) 2155 Chenault Avenue,
Carrollton, Texas, and (ii) 1544 and 1548 Valwood Parkway, Carrollton, Texas;

      (b) No later than thirty (30) days from the Agreement Date, the Borrower
shall deliver certified copies of all insurance policies of the Borrower Parties
meeting the requirements of Section 6.5; and

      (c) No later than one hundred (100) days from the Agreement Date, the
Borrower shall deliver a duly executed Collateral Access Agreement with respect
to the 8201 Tristar Drive, Irving, Texas location of the Borrower Parties.

                                   ARTICLE 7.

                              INFORMATION COVENANTS

      Until the earlier of the date the Obligations are repaid in full or the
date the Borrower no longer has a right to borrow, or have Letters of Credit
issued, hereunder (whether or not the conditions to borrowing have been or can
be fulfilled) and unless the Majority Lenders shall otherwise give their prior
consent in writing, the Borrower Parties will furnish or cause to be furnished
to each member of the Lender Group:

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<PAGE>

      Section 7.1 Quarterly Financial Statements and Information. Within
forty-five (45) days after the last day of each fiscal quarter in each fiscal
year of the Borrower, the balance sheet of the Borrower as at the end of such
fiscal quarter, and the related statement of income and retained earnings and
related statement of cash flows for such fiscal quarter which financial
statements shall, (a) set forth in comparative form the figures for the
applicable period set forth in the projections delivered by the Borrower Parties
pursuant to Section 7.5(c), and (b) set forth in comparative form such figures
as at the end of such quarter during the previous fiscal year and for such
quarter during the previous fiscal year, all of which shall be on a consolidated
basis with the other Borrower Parties and shall be certified by an Authorized
Signatory of the Borrower to be, in his or her opinion, complete and correct in
all material respects and to present fairly in accordance with GAAP the
financial position of the Borrower Parties, as at the end of such period and the
results of operations for such period, subject only to normal year-end
adjustments.

      Section 7.2 Annual Financial Statements and Information; Certificate of No
Default. Within ninety (90) days after the end of each fiscal year of the
Borrower, the audited balance sheet of the Borrower as at the end of such year
and the related audited statements of income and retained earnings and related
audited statements of cash flows for such year, all of which shall be on a
consolidated basis with the other Borrower Parties, which financial statements
shall set forth in comparative form such figures as at the end of and for the
previous year, and shall be accompanied by an opinion of independent certified
public accountants of recognized standing satisfactory to the Administrative
Agent, stating that such financial statements are unqualified and prepared in
all material respects in accordance with GAAP, without any explanatory
paragraphs, together with a statement of such accountants of the Borrower
certifying that no Default, including, without limitation, any Default under the
Financial Covenants, was detected during the examination of the Borrower
Parties.

      Section 7.3 Compliance Certificates.

      (a) Quarterly and Annual Compliance Certificates. At the time the
financial statements are furnished pursuant to Sections 7.1 and 7.2, a
Compliance Certificate:

            (i) Setting forth as at the end of such quarter or year, as the case
      may be, the arithmetical calculations required to establish whether or not
      the Borrower Parties were in compliance with the requirements of the
      Financial Covenants; and

            (ii) Stating that, to the best of his or her knowledge, no Default
      has occurred as at the end of such quarter or year, as the case may be,
      or, if a Default has occurred, disclosing each such Default and its
      nature, when it occurred and whether it is continuing.

      Section 7.4 Access to Accountants. Each Borrower Party hereby authorizes
the Administrative Agent to communicate directly with the Borrower Parties' and
their Subsidiaries' independent public accountants and authorizes these
accountants to disclose to the Administrative Agent any and all financial
statements and other supporting financial data, including matters relating to
the annual audit and copies of any management letter with respect to its
business, financial condition and other affairs. On or before the Agreement
Date, the Borrower Parties shall deliver to their independent public accountants
a letter authorizing them to comply with the provisions of this Section 7.4.

      Section 7.5 Additional Reports.

      (a) Within thirty (30) days after the end of each fiscal month, or more
frequently as reasonably required by the Administrative Agent, the Borrower
shall deliver to the Administrative Agent and the Lenders, a Borrowing Base
Certificate as of the last day of the preceding fiscal month or such

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<PAGE>

other date reasonably required by the Administrative Agent, which shall be in
such form as shall be satisfactory to the Administrative Agent, setting forth
the amount of Inventory owned by the Borrower, and specifically setting forth
the amount of Eligible Inventory and setting forth a categorical breakdown of
all Accounts of the Borrower and a calculation of Eligible Accounts as of such
last day of the preceding fiscal month.

      (b) Promptly upon receipt thereof, the Borrower Parties shall deliver to
the Lender Group copies of all final reports, if any, submitted to any Borrower
Party by the Borrower Parties' independent public accountants in connection with
any annual or interim audit of the Borrower Parties, including, without
limitation, any final management report prepared in connection with the annual
audit referred to in Section 7.2;

      (c) On or before the commencement of each fiscal year, the Borrower
Parties shall deliver to the Lender Group the annual budget for the Borrower
Parties approved by the board of directors of the Borrower, including forecasts
of the income statement, the balance sheet and a cash flow statement for the
immediately succeeding year on a month by month basis;

      (d) To the extent not covered elsewhere in this Article 7, promptly after
the sending thereof, the Borrower Parties shall deliver to the Administrative
Agent and the Lenders copies of all financial statements, reports and other
information which any Borrower Party sends to any holder of its Funded Debt
(including the Funded Debt under the Senior Note Documents and the Subordinated
Note Documents) or its securities or which any Borrower Party files with the
Securities and Exchange Commission or any national securities exchange;

      (e) If there is a material change in GAAP after December 31, 2003, that
affects the presentation of the financial statements referred to in Section 7.1
and 7.2, then, in addition to delivery of such financial statements, and on the
date such financial statements are required to be delivered, the Borrower
Parties shall furnish the adjustments and reconciliations necessary to enable
the Borrower and each Lender to determine compliance with each of the Financial
Covenants, all of which shall be determined in accordance with GAAP consistently
applied; and

      (f) From time to time and promptly upon each request the Borrower Parties
shall deliver to the Administrative Agent on behalf of the Lender Group such
data, certificates, reports, statements, opinions of counsel, documents, or
further information regarding the business, assets, liabilities, financial
position, projections or results of operations of the Borrower Parties as the
Administrative Agent may reasonably request.

      Section 7.6 Notice of Litigation and Other Matters.

      (a) Promptly upon (and in any event within three (3) Business Days of) any
Borrower Party's obtaining knowledge of the institution of, or a written threat
of, any action, suit, governmental investigation or arbitration proceeding
against any Borrower Party or any Property, which action, suit, governmental
investigation or arbitration proceeding, if adversely determined, would expose,
in such Borrower Party's reasonable judgment, any Borrower Party or any
Subsidiary of a Borrower Party to liability in an aggregate amount in excess of
$2,000,000, such Borrower Party shall notify the Lender Group of the occurrence
thereof, and the Borrower Parties shall provide such additional information with
respect to such matters as the Lender Group, or any of them, may reasonably
request.

      (b) Immediately following the occurrence of any default (whether or not
any Borrower Party has received notice thereof from any other Person) on Funded
Debt of any Borrower Party which singly,

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<PAGE>

or in the aggregate, exceeds $2,000,000, such Borrower Party shall notify the
Lender Group of the occurrence thereof.

      (c) Promptly upon (and in any event within three (3) Business Days of) any
Borrower Party's receipt of notice of the pendency of any proceeding for the
condemnation or other taking of any material Personal Property of any Borrower
Party, such Borrower Party shall notify the Lender Group of the occurrence
thereof.

      (d) Promptly upon (and in any event within three (3) Business Days of) any
Borrower Party's receipt of notice of any event that would reasonably be likely
to result in a Materially Adverse Effect, such Borrower Party shall notify the
Lender Group of the occurrence thereof.

      (e) Promptly (and in any event within three (3) Business Days) following
any material amendment or change approved by the board of directors of the
Borrower to the budget submitted to the Lender Group pursuant to Section 7.5(c)
hereof, the Borrower Parties shall notify the Lender Group of the occurrence
thereof.

      (f) Immediately following any (i) Default under any Loan Document, or any
default by any Borrower Party under the Senior Note Documents or the
Subordinated Note Documents, or (ii) default under any other agreement (other
than those referenced in clause (i) of this Section 7.6(f) above or in Section
7.6(b)) to which any Borrower Party is a party or by which any Borrower Party's
is bound which would reasonably be expected to have a Materially Adverse Effect,
the Borrower Parties shall notify the Lender Group of the occurrence thereof
giving in each case the details thereof and specifying the action proposed to be
taken with respect thereto.

      (g) Promptly (and in any event within three (3) Business Days) following
any request therefor, the Borrower Parties shall provide all documentation and
other information required by bank regulatory authorities under applicable "know
your customer" and anti-money laundering rules and regulations, including the
USA Patriot Act.

      (h) Promptly (and in any event within three (3) Business Days) following
the occurrence of any ERISA Event or a "prohibited transaction" (as such term is
defined in Section 406 of ERISA or Section 4975 of the Code) with respect to any
Plan of any Borrower Party or any of its ERISA Affiliates or the commencement or
threatened commencement of any litigation regarding any such Plan or naming it
or the trustee of any such Plan with respect to such Plan (other than claims for
benefits in the ordinary course of business), the Borrower Parties shall notify
the Administrative Agent and the Lenders of the occurrence thereof.

      (i) The Borrower Parties shall deliver updates or supplements to the
following schedules (i) within forty-five days after the end of the end of each
fiscal year, as of the last day of such fiscal year: Schedule 5.1(c)-1, Schedule
5.1(c)-2, Schedule 5.1(d), Schedule 5.1(h), Schedule 5.1(m), Schedule 5.1(p),
Schedule 5.1(x)-1, Schedule 5.1(x)-2, Schedule 5.1(y)-1 and Schedule 5.1(y)-2,
and (ii) within forty-five days after the end of the end of each of the first
and third fiscal quarters of each fiscal year, as of the last day of such fiscal
quarter: Schedule 6.11 and Schedule 6.15, in each case, as may be required to
render correct the representations and warranties contained in the applicable
sections to which such schedules relate as of the last day of such fiscal
quarter without giving effect to any references therein to the "Agreement Date"
in each case, appropriately marked to show the changes made therein; provided
that no such supplement to any such Schedules or representation shall be deemed
a waiver of any Default resulting from the matters disclosed therein, except as
consented to by the Majority Lenders in writing.

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<PAGE>

                                   ARTICLE 8.

                               NEGATIVE COVENANTS

      Until the earlier of the date the Obligations are repaid in full or the
date the Borrower no longer has a right to borrow, or have Letters of Credit
issued, hereunder (whether or not the conditions to borrowing have been or can
be fulfilled) and unless the Majority Lenders shall otherwise give their prior
consent in writing:

      Section 8.1 Funded Debt. No Borrower Party will create, assume, incur, or
otherwise become or remain obligated in respect of, or permit to be outstanding,
any Funded Debt except, provided no Default then exists or would be caused
thereby:

      (a) Funded Debt under this Agreement and the other Loan Documents and the
Hedge Agreements;

      (b) Funded Debt under the Senior Note Documents in an aggregate principal
amount outstanding not to exceed $154,000,000 at any time;

      (c) Funded Debt under the Subordinated Note Documents in an aggregate
principal amount outstanding not to exceed the sum of $40,000,000 plus any
non-cash interest payments made in the form of Notes (as defined in the Note
Purchase Agreement) as permitted by Section 8.4(d) at any time, provided that
such Funded Debt is subject to the Subordination Agreement at all times;

      (d) So long as the Borrower delivers to the Lender Group evidence
satisfactory to the Administrative Agent that the Borrower Parties will be in
pro forma compliance with this Agreement and the other Loan Documents after
giving effect to the incurrence thereof, unsecured Funded Debt used:

                  (i) to finance any acquisition permitted by Section 8.7(d),
provided that all assets acquired are subject to the Lien of the Administrative
Agent upon the acquisition thereof, or

                  (ii) to finance the general corporate and working capital
needs of the Borrower Parties, provided that the aggregate principal amount of
such unsecured Funded Debt incurred pursuant to this clause (ii) shall not
exceed $20,000,000 at any time;

      (e) Trade or accounts payable or similar obligations, and accrued
expenses, incurred in the ordinary course of business, other than for borrowed
money;

      (f) Funded Debt of a Borrower Party that is unsecured or secured by
Permitted Liens described in clause (f) of the definition of Permitted Liens set
forth in Article 1 (including, without limitation, Capitalized Lease
Obligations), collectively, not to exceed the aggregate principal amount of
$5,000,000 at any time;

      (g) Guaranties permitted by Section 8.2;

      (h) Unsecured Funded Debt of any Borrower Party owed to another Borrower
Party; and

      (i) Funded Debt permitted under Section 8.7.

      Section 8.2 Guaranties. No Borrower Party will at any time guarantee or
enter into or assume any Guaranty, or be obligated with respect to, or permit to
be outstanding, any Guaranty, other

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<PAGE>

than (a) guaranties of the Obligations, (b) so long as no Default then exists or
would be caused thereby, guaranties by any Borrower Party of obligations under
agreements of any other Borrower Party entered into in connection with the
acquisition of services, supplies, and equipment in the ordinary course of
business of such Borrower Party, (c) guaranties of Funded Debt under the Senior
Note Documents existing as of the Agreement Date, and, so long as no Default
then exists or would be caused thereby, guaranties of Funded Debt under the
Senior Note Documents entered into after the Agreement Date, (d) guaranties of
Funded Debt under the Subordinated Note Documents existing as of the Agreement
Date, and, so long as no Default then exists or would be caused thereby,
guaranties of Funded Debt under the Subordinated Note Documents entered into
after the Agreement Date, provided that all such guaranties are subject to the
Subordination Agreement at all times, (e) so long as no Default then exists or
would be caused thereby, endorsements of instruments in the ordinary course of
business and (f) so long as no Default then exists or would be caused thereby,
guaranties by any Borrower Party of any obligation (other than the Funded Debt
under the Senior Note Documents or the Subordinated Note Documents) of any other
Borrower Party.

      Section 8.3 Liens. No Borrower Party will create, assume, incur, or permit
to exist or to be created, assumed, or permitted to exist, directly or
indirectly, any Lien on any of its property, real or personal, now owned or
hereafter acquired, except for Permitted Liens.

      Section 8.4 Restricted Payments and Purchases. No Borrower Party shall
directly or indirectly declare or make any Restricted Payment or Restricted
Purchase, or set aside any funds for any such purpose, other than Dividends on
common stock which accrue (but are not paid in cash) or are paid in kind or
Dividends on preferred stock which accrue (but are not paid in cash) or are paid
in kind; provided, however, that (a) the Borrower's Subsidiaries may make
Restricted Payments to the Borrower or a wholly owned Domestic Subsidiary of the
Borrower that is a Borrower Party; (b) to the extent permitted by the Management
Fees Subordination Agreement, T-Netix and Evercom Systems, Inc. may make
payments in accordance with the Management Agreements as they exist on the date
hereof or as amended as permitted by this Agreement, (c) the Borrower may pay
annual fees to the directors of the Borrower appointed by the former
shareholders of the Target in an aggregate amount not to exceed $60,000 and
annual fees to the former shareholders of the Target in an aggregate amount not
to exceed $140,000, (d) to the extent permitted by the Subordination Agreement,
the Borrower Parties may make non-cash interest payments in accordance with the
Subordinated Note Documents as they exist on the date hereof or as amended as
permitted by this Agreement and (e) so long as no Default then exists or would
be caused thereby and Distributable Cash Flow is available on the date thereof
for the payment therefor, the Borrower Parties may make cash interest payments
in accordance with the Subordinated Note Documents as they exist on the date
hereof or as amended as permitted by this Agreement.

      Section 8.5 Investments. No Borrower Party will make Investments, except
that (a) the Borrower may purchase or otherwise acquire and own and may permit
any of its Subsidiaries to purchase or otherwise acquire and own Cash
Equivalents; (b) the Borrower may hold the Investments in existence on the
Agreement Date and described on Schedule 5.1(c)-2; (c) the Borrower Parties may
hold the Equity Interests of their respective Subsidiaries in existence as of
the Agreement Date and their Subsidiaries created after the Agreement Date in
accordance with Section 6.20 and Section 8.7(i); (d) without limiting Section
8.2, any Borrower Party may make Investments in any other Borrower Party; (e)
the Borrower Parties may make loans to employees in an aggregate amount not to
exceed $500,000 at any time outstanding; (f) the Borrower Parties may hold
Investments arising out of Hedge Agreements; (g) the Borrower may consummate the
Merger on the Agreement Date; and (h) the Borrower Parties may make Investments
permitted by Section 8.7(d).

      Section 8.6 Affiliate Transactions. No Borrower Party shall enter into or
be a party to any agreement or transaction with any Affiliate except (a) as
described on Schedule 8.6, (b) Restricted

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Payments permitted by Section 8.4, (c) Investments permitted by Section 8.5 or
(d) in the ordinary course of and pursuant to the reasonable requirements of the
applicable Borrower Party's business and upon fair and reasonable terms that are
no less favorable to such Borrower Party than it would obtain in a comparable
arms length transaction with a Person not an Affiliate of such Borrower Party,
and otherwise on terms consistent with the business relationship of such
Borrower Party and such Affiliate prior to the Agreement Date, if any, and fully
disclosed to the Administrative Agent.

      Section 8.7 Liquidation; Change in Ownership, Name, or Fiscal Year;
Disposition or Acquisition of Assets; Etc. No Borrower Party shall at any time:

      (a) Liquidate or dissolve itself (or suffer any liquidation or
dissolution) or otherwise wind up its business, except that any Subsidiary of
the Borrower may liquidate or dissolve itself in accordance with Applicable Law;

      (b) Sell, lease, abandon, transfer or otherwise dispose of, in a single
transaction or a series of related transactions, any assets, property or
business, except for (i) the sale of Inventory in the ordinary course of
business at the fair market value thereof and for cash or cash equivalents, (ii)
physical assets used or consumed in the ordinary course of business, and (iii)
the sale or other disposal of obsolete equipment with a sale value not greater
than $500,000 in the aggregate for all such assets that may be sold during any
year if at least 75% of the purchase price therefor is paid in cash;

      (c) Become a general partner or joint venturer with any third party after
the Agreement Date;

      (d) Acquire (i) any Person, (ii) all or any substantial part of the
assets, property or business of a Person, or (iii) any assets that constitute a
division or operating unit of the business of any Person; provided, however,
that (A) the Borrower may consummate the Merger on the Agreement Date and (B)
the Borrower Parties may acquire the Equity Interests or all or any substantial
part of the assets, property or business of a Person or any assets that
constitute a division or operating unit of the business of a Person so long as
(w) no Default hereunder (including, without limitation, under Section 8.7(i))
and no default under the Senior Note Documents or the Subordinated Note
Documents exists or would be caused thereby and the Borrower delivers to the
Lender Group evidence satisfactory to the Administrative Agent that the Borrower
Parties will be in pro forma compliance with this Agreement and the other Loan
Documents after giving effect to such acquisition, (x) the Borrower shall have
minimum Availability of $5,000,000 after giving effect to such acquisition and
(y) the Borrower Parties execute and deliver to the Administrative Agent all
documents required by Section 6.10 and 6.20 and any other Loan Documents and
opinions reasonably requested by the Administrative Agent regarding the creation
and perfection of the security interests of the Administrative Agent in the
Collateral;

      (e) Merge or consolidate with any other Person; provided, however, that,
so long as no Default then exists or would be caused thereby (i) any Guarantor
may merge into the Borrower so long as the Borrower is the surviving entity
after such merger, (ii) any Guarantor may merge into any other Guarantor;

      (f) Change its corporate name without giving the Administrative Agent
thirty (30) days' prior written notice of its intention to do so and complying
with all reasonable requirements of the Lenders in regard thereto;

      (g) Change its year-end for accounting purposes from the fiscal year
ending December 31;

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<PAGE>

      (h) Acquire any real estate, unless the acquiring Borrower Party promptly
provides a mortgage in support of the Obligations and any other documents,
instruments, opinions and other items reasonably requested by the Administrative
Agent;

      (i) Create any Subsidiary; provided, however, that, so long as no Default
then exists or would be caused thereby, the Borrower or any Subsidiary of the
Borrower may create wholly owned Domestic Subsidiaries so long as the Borrower
and such Subsidiaries comply with Sections 6.10 and 6.20; or

      (j) (i) With respect to the Borrower, engage in any material business
activity other than its ownership of the Equity Interests of its Subsidiaries,
its performance hereunder and under the other Loan Documents, in respect of its
obligations under the Senior Note Documents, in respect of its obligations under
the Subordinated Note Documents, in respect of its corporate organizational
documents and in respect of the payment of insurance, accounting, legal or other
professional or administrative expenses incurred in the ordinary course of
business and (ii) with respect to the other Borrower Parties, engage in any
business other than (A) providing specialized telecommunications products and
services, including security enhanced call processing, call validation and
billing for the corrections communications marketplace and (B) consummating the
transactions to occur on the Agreement Date contemplated hereunder.

      Section 8.8 Interest Coverage Ratio. The Borrower Parties shall not permit
the Interest Coverage Ratio, measured at each fiscal quarter end occurring
during the term of this Agreement and maintained through the next measurement
date, to be less than the ratio specified below for the periods specified below:

<TABLE>
<CAPTION>
                             Period                                  Interest Coverage Ratio
                             ------                                  -----------------------
<S>                                                                  <C>
For the fiscal quarter ending December 31, 2004, the Agreement            1.75 to 1.00
Date through December 31, 2004

For the fiscal quarter ending March 31, 2005, the Agreement Date          1.75 to 1.00
through March 31, 2005

For the fiscal quarter ending June 30, 2005, the Agreement Date           1.75 to 1.00
through June 30, 2005

For the fiscal quarter ending September 31, 2005, and each fiscal         1.75 to 1.00
quarter ending thereafter, immediately preceding four (4) fiscal
quarter period
</TABLE>

      Section 8.9 Capital Expenditures. The Borrower Parties and their
Subsidiaries shall not make or incur in the aggregate any Capital Expenditures
in excess of the amounts set forth in the table below for the applicable periods
set forth in such table:

<TABLE>
<CAPTION>
                Period                         Capital Expenditures shall not exceed:
                ------                        ----------------------------------------
<S>                                           <C>
Agreement Date through December 31, 2004                     $9,000,000
</TABLE>

                                       68
<PAGE>

<TABLE>
<S>                                           <C>
Calendar year 2005 and each calendar year     $22,000,000 plus the Capital Expenditure
thereafter                                           Carry Forward Amount
</TABLE>

      Section 8.10 Minimum EBITDA. Commencing with the fiscal quarter ended
December 31, 2004, the Borrower Parties shall not permit EBITDA, measured at
each fiscal quarter end occurring during the term of this Agreement, for the
immediately preceding four fiscal quarter period, to be less than $35,000,000;
provided that it is agreed that EBITDA for the fiscal quarters ended March 31,
2004, and June 30, 2004, shall equal $12,062,000 and $12,489,000, respectively.

      Section 8.11 Sales and Leasebacks. No Borrower Party shall enter into any
arrangement, directly or indirectly, with any third party whereby such Borrower
Party, shall sell or transfer any property, real or personal, whether now owned
or hereafter acquired, and whereby such Borrower Party shall then or thereafter
rent or lease as lessee such property or any part thereof or other property
which such Borrower Party intends to use for substantially the same purpose or
purposes as the property sold or transferred.

      Section 8.12 Amendment and Waiver. No Borrower Party shall (a) amend,
modify, alter, increase, or change any of the terms or conditions of any of the
Senior Note Documents or any of the Subordinated Note Documents in any manner
that would (i) have the effect of (A) increasing principal, interest, fee or
other payment obligations thereunder, (B) adding collateral or other guarantors
(other than as contemplated in the Senior Note Documents and, with respect to
other guarantors, the Subordinated Note Documents, as of the Agreement Date),
(C) shortening the maturity or increasing the amortization of the obligations
thereunder, or (D) making the covenants, defaults or other provisions thereof
more burdensome or (ii) otherwise have a material adverse effect on the
interests of the Lender Group or (b) enter into any amendment of, or agree to or
accept any waiver, which would materially adversely affect the rights of such
Borrower Party or any member of the Lender Group, in the reasonable
determination of the Majority Lenders, of (i) its articles or certificate of
incorporation or formation and by-laws, partnership agreement or other governing
documents, (ii) the Management Agreements, (iii) the Merger Documents or (iv)
any Material Contract.

      Section 8.13 ERISA Liability. No Borrower Party shall (a) cause or permit
to occur any event that could result in the imposition of a Lien under Section
412 of the Code or Section 302 or 4068 of ERISA, or (b) cause or permit to occur
an ERISA Event to the extent such ERISA Event could reasonably be expected to
have a Materially Adverse Effect.

      Section 8.14 Prepayments. No Borrower Party shall prepay, redeem, defease
or purchase in any manner, or deposit or set aside funds for the purpose of any
of the foregoing, make any payment in respect of principal of, or make any
payment in respect of interest on, any Funded Debt, except (a) the Borrower
Parties may prepay, redeem, defease or purchase in any manner, or deposit or set
aside funds for the purpose of any of the foregoing, make any payment in respect
of principal of, or make any payment in respect of interest on, any Funded Debt
(other than any Funded Debt incurred under the Subordinated Note Documents) in
an aggregate amount not exceeding $1,000,000 in any fiscal year and (b) the
Borrower may (i) make regularly scheduled payments of principal or interest
required in accordance with the terms of the instruments governing any Funded
Debt permitted hereunder (other than any Funded Debt incurred under the
Subordinated Note Documents), (ii) make regularly scheduled payments of interest
required in accordance with the terms of the Subordinated Note Documents as
permitted by Section 8.4, (iii) so long as no Default then exists or would be
caused thereby, within one hundred eighty (180) days after the end of each
calendar year, purchase Securities (as defined in the Indenture) tendered for
purchase pursuant to an Excess Cash Flow Offer (as defined in the Indenture) in
an aggregate amount not to exceed for such calendar year, together with the
amount of any repurchase

                                       69
<PAGE>

made with respect to such calendar year under Section 8.14(b)(iv), the Excess
Cash Flow Amount (as defined in the Indenture) for such calendar year, (iv) so
long as no Default then exists or would be caused thereby, within thirty (30)
days prior to the end of each calendar year, purchase Securities (as defined in
the Indenture) available for purchase in an aggregate amount not to exceed for
such calendar year, together with the amount of any repurchase made with respect
to such calendar year under Section 8.14(b)(iii), the Excess Cash Flow Amount
(as defined in the Indenture) for such calendar year and (v) make payments,
including prepayments permitted or required hereunder, with respect to the
Obligations. For purposes of this Section, the exchange of the Initial
Securities (as defined in the Indenture) for Exchange Securities (as defined in
the Indenture) pursuant to the Registration Rights Agreement (as defined in the
Indenture) shall not be considered a redemption of the Initial Securities (as
defined in the Indenture).

      Section 8.15 Negative Pledge, Etc. No Borrower Party shall, directly or
indirectly, enter into any agreement (other than the Loan Documents, the Senior
Note Documents and the Subordinated Note Documents) with any Person that
prohibits or restricts or limits the ability of any Borrower Party or any such
Subsidiary to create, incur, pledge, or suffer to exist any Lien upon any of its
respective assets, or restricts the ability of any Subsidiary of the Borrower to
pay Dividends to the Borrower.

      Section 8.16 Inconsistent Agreements. No Borrower Party shall enter into
any contract or agreement which would materially violate the terms hereof, any
other Loan Document or any Hedge Agreement.

                                    ARTICLE 9.

                                     DEFAULT

      Section 9.1 Events of Default. Each of the following shall constitute an
Event of Default, whatever the reason for such event and whether it shall be
voluntary or involuntary or be effected by operation of law or pursuant to any
judgment or order of any court or any order, rule, or regulation of any
governmental or non-governmental body:

      (a) Any representation or warranty made under this Agreement, any other
Loan Document or any Hedge Agreements shall prove incorrect or misleading in any
material respect when made or deemed to have been made pursuant to Section 5.4;

      (b) (i) Any payment of any principal hereunder, or any reimbursement
obligations with respect to any Letter of Credit, shall not be received by the
Administrative Agent on the date such payment is due; or (ii) any payment of
interest hereunder or any fees payable hereunder or under the other Loan
Documents shall not be received by the Administrative Agent within five (5)
calendar days of the date such payment is due;

      (c) Any Borrower Party shall default in the performance or observance of
any agreement or covenant contained in Section 2.12, 6.1, 6.7 or 6.20 or in
Article 7 (other than Section 7.6(g)) or Article 8 (other than Sections 8.13,
8.15 and 8.16) or in any Security Document;

      (d) Any Borrower Party shall default in the performance or observance of
any other agreement or covenant contained in this Agreement not specifically
referred to elsewhere in this Section 9.1, and such default, if curable, shall
not be cured to the Majority Lenders' satisfaction within the earlier of (i) a
period of thirty (30) days from the date that such Borrower Party knew or should
have known of the occurrence of such default, or (ii) a period of thirty (30)
days after written notice of such default is given to such Borrower Party;

                                       70
<PAGE>

      (e) There shall occur any default in the performance or observance of any
agreement or covenant contained in any of the other Loan Documents (other than
this Agreement or the Security Documents or as otherwise provided in this
Section 9.1) which shall not be cured to the Majority Lenders' satisfaction
within the applicable cure period, if any, provided for in such Loan Document;

      (f) There shall occur any Change in Control;

      (g) (i) There shall be entered a decree or order for relief in respect of
any Borrower Party or any Subsidiary of a Borrower Party under the Bankruptcy
Code, or any other applicable federal or state bankruptcy law or other similar
law, or appointing a receiver, liquidator, assignee, trustee, custodian,
sequestrator, or similar official of any Borrower Party or of any Subsidiary of
a Borrower Party or of any substantial part of its properties, or ordering the
winding-up or liquidation of the affairs of any Borrower Party or any Subsidiary
of a Borrower Party, or (ii) an involuntary petition shall be filed against any
Borrower Party or any Subsidiary of a Borrower Party and a temporary stay
entered and (A) such petition and stay shall not be diligently contested, or (B)
any such petition and stay shall continue undismissed for a period of sixty (60)
consecutive days;

      (h) Any Borrower Party or any Subsidiary of a Borrower Party shall
commence an Insolvency Proceeding or any Borrower Party or any Subsidiary of a
Borrower Party shall consent to the institution of an Insolvency Proceeding or
to the appointment or taking of possession of a receiver, liquidator, assignee,
trustee, custodian, sequestrator, or other similar official of such Borrower
Party or any Subsidiary of a Borrower Party or of any substantial part of its
properties, or any Borrower Party or any Subsidiary of a Borrower Party shall
fail generally to pay its debts as they become due, or any Borrower Party or any
Subsidiary of a Borrower Party shall take any action in furtherance of any such
action;

      (i) A final judgment (other than a money judgment or judgments fully
covered (except for customary deductibles or copayments not to exceed $2,000,000
in the aggregate) by insurance as to which the insurance company has
acknowledged coverage) shall be entered by any court against any Borrower Party
or any Subsidiary of any Borrower Party for the payment of money which exceeds,
together with all other such judgments of the Borrower Parties and their
Subsidiaries outstanding at such time, $2,000,000 in the aggregate, or a warrant
of attachment or execution or similar process shall be issued or levied against
property of any Borrower Party or any Subsidiary of a Borrower Party pursuant to
a final judgment which, together with all other such property of the Borrower
Parties and their Subsidiaries subject to other such process, exceeds in value
$2,000,000 in the aggregate, and if, within thirty (30) days after the entry,
issue, or levy thereof, such judgment, warrant, or process shall not have been
paid or discharged or stayed pending appeal, or if, after the expiration of any
such stay, such judgment, warrant, or process shall not have been paid or
discharged;

      (j) (i) There shall be at any time any "accumulated funding deficiency,"
as defined in ERISA or in Section 412 of the Code, with respect to any Plan
maintained by any Borrower Party or any ERISA Affiliate of a Borrower Party, or
to which any Borrower Party or any of its ERISA Affiliates has any liabilities,
or any trust created thereunder; (ii) a trustee shall be appointed by a United
States District Court to administer any such Plan; (iii) the PBGC shall
institute proceedings to terminate any such Plan; (iv) any Borrower Party or any
ERISA Affiliate of any Borrower Party shall incur any liability to the PBGC in
connection with the termination of any such Plan; (v) any Plan or trust created
under any Plan of any Borrower Party or any ERISA Affiliate of any Borrower
Party shall engage in a non-exempt "prohibited transaction" (as such term is
defined in Section 406 of ERISA or Section 4975 of the Code) which would subject
any such Plan, any trust created thereunder, any trustee or administrator
thereof, or any party dealing with any such Plan or trust to any material tax or
penalty on "prohibited transactions" imposed by Section 502 of ERISA or Section
4975 of the Code; (vi) there shall be at any time a Lien

                                       71
<PAGE>

imposed against the assets of a Borrower Party or ERISA Affiliate under Code
Section 412, or ERISA Sections 302 or 4068; or (vii) there shall occur at any
time an ERISA Event, in each case, to the extent such occurrence could
reasonably be expected to have a Materially Adverse Effect.

      (k) There shall occur any acceleration or any Funded Debt is not paid
within any applicable grace period under any indenture, agreement, or instrument
evidencing Funded Debt of any Borrower Party or any Subsidiary of a Borrower
Party or any Hedge Agreement in an aggregate principal amount exceeding
$2,000,000 (determined singly or in the aggregate with other Funded Debt and any
obligations under the Hedge Agreements);

      (l) There shall occur and be continuing an "Event of Default" under (and
as defined in) the Indenture; or there shall occur and be continuing an "Event
of Default" under (and as defined in) the Subordinated Note Documents; or there
shall occur and be continuing an event of default under any of the other Senior
Note Documents or under any of the other Subordinated Note Documents;

      (m) H.I.G. shall deliver notice of a breach or default under a Management
Agreement to a Borrower Party;

      (n) All or any material portion of any Loan Document or any Hedge
Agreement shall at any time and for any reason be declared to be null and void,
or a proceeding shall be commenced by any Borrower Party, any Subsidiary of a
Borrower Party or any Affiliate thereof, or by any governmental authority having
jurisdiction over any Borrower Party, any Subsidiary of a Borrower Party or any
Affiliate thereof, seeking to establish the invalidity or unenforceability
thereof (exclusive of questions of interpretation of any provision thereof), or
any Borrower Party, any Subsidiary of a Borrower Party thereof shall deny that
it has any liability or obligation for the payment of any Obligation purported
to be created under any Loan Document or any Hedge Agreement, or any Hedge
Agreement shall be terminated as a result of a default or event of default by
any Borrower Party or revoked;

      (o) There shall occur any default by any party under any Merger Document
and any such document shall cease to be in full force and effect (except
pursuant to its terms) or shall be declared null and void, which in any such
case could reasonably be expected to expose the Borrower to a claim, loss or
liability in an aggregate amount in excess of $2,000,000;

      (p) The Merger shall not have become effective on the Agreement Date;

      (q) The Employment Agreement of Richard Falcone is terminated for any
reason and no replacement executive satisfactory to the Administrative Agent is
employed by the Borrower to replace such Person terminated within one hundred
fifty (150) days after such termination; or

      (r) Any Loan Document that purports to create a Lien, shall, for any
reason, fail or cease to create a valid and perfected and, except to the extent
permitted by the terms hereof or thereof, first priority Lien on or security
interest in Collateral with a fair market value of $2,000,000 or more covered
hereby or thereby, other than the failure of the Administrative Agent to take
any action within its control, and the Borrower Parties fail to correct such
failure or cessation within ten (10) days after written notice of such failure
or cessation is given to the Borrower.

      Section 9.2 Remedies. If an Event of Default shall have occurred and shall
be continuing, in addition to the rights and remedies set forth elsewhere in
this Agreement, the other Loan Documents and the Hedge Agreements:

                                       72
<PAGE>

      (a) With the exception of an Event of Default specified in Section 9.1(f),
(g) or (h), the Administrative Agent may in its discretion (unless otherwise
instructed by the Majority Lenders) or shall at the direction of the Majority
Lenders, with notice to the Borrower (i) terminate the Commitments and the
Letter of Credit Commitment, or (ii) declare the principal of and interest on
the Loans and all other Obligations (other than any Obligations existing from
time to time of any Borrower Party to the Administrative Agent (or an Affiliate
of the Administrative Agent) arising in connection with any Hedge Agreements) to
be forthwith due and payable without presentment, demand, protest, or notice of
any kind, all of which are hereby expressly waived, anything in this Agreement
or in any other Loan Document to the contrary notwithstanding, or both.

      (b) Upon the occurrence and continuance of an Event of Default specified
in Sections 9.1(f), (g) or (h), such principal, interest, and other Obligations
(other than any Obligations existing from time to time of any Borrower Party to
the Administrative Agent (or an Affiliate of the Administrative Agent) arising
in connection with any Hedge Agreements) shall thereupon and concurrently
therewith become due and payable, and the Commitments and the Letter of Credit
Commitment, shall forthwith terminate, all without any action by the Lender
Group, or any of them and without presentment, demand, protest, or other notice
of any kind, all of which are expressly waived, anything in this Agreement or in
any other Loan Document to the contrary notwithstanding.

      (c) The Administrative Agent may in its discretion (unless otherwise
instructed by the Majority Lenders) or shall at the direction of the Majority
Lenders, with notice to the Borrower, exercise all of the post-default rights
granted to the Lender Group, or any of them, under the Loan Documents or under
Applicable Law. The Administrative Agent, for the benefit of the Lender Group,
shall have the right to the appointment of a receiver for the Property of the
Borrower Parties, and the Borrower Parties hereby consent to such rights and
such appointment and hereby waive any objection the Borrower Parties may have
thereto or the right to have a bond or other security posted by the Lender
Group, or any of them, in connection therewith.

      (d) In regard to all Letters of Credit with respect to which presentment
for honor shall not have occurred at the time of any acceleration of the
Obligations pursuant to the provisions of this Section 9.2 or, upon the request
of the Administrative Agent, after the occurrence of an Event of Default and
prior to acceleration, the Borrower shall promptly upon demand by the
Administrative Agent deposit in a Letter of Credit Reserve Account opened by the
Administrative Agent for the benefit of the Lender Group an amount equal to one
hundred and five percent (105%) of the aggregate then undrawn and unexpired
amount of such Letter of Credit Obligations. Amounts held in such Letter of
Credit Reserve Account shall be applied by the Administrative Agent to the
payment of drafts drawn under such Letters of Credit, and the unused portion
thereof after such Letters of Credit shall have expired or been fully drawn
upon, if any, shall be applied to repay other Obligations in the manner set
forth in Section 2.11. Pending the application of such deposit to the payment of
the Reimbursement Obligations, the Administrative Agent shall, to the extent
reasonably practicable, invest such deposit in an interest bearing open account
or similar available savings deposit account and all interest accrued thereon
shall be held with such deposit as additional security for the Obligations.
After all such Letters of Credit shall have expired or been fully drawn upon,
all Reimbursement Obligations shall have been satisfied, and all other
Obligations shall have been paid in full, the balance, if any, in such Letter of
Credit Reserve Account shall be returned to the Borrower. Except as expressly
provided hereinabove, presentment, demand, protest and all other notices of any
kind are hereby expressly waived by the Borrower.

      (e) The rights and remedies of the Lender Group hereunder shall be
cumulative, and not exclusive.

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<PAGE>

                                   ARTICLE 10.

                            THE ADMINISTRATIVE AGENT

      Section 10.1 Appointment and Authorization. Each member of the Lender
Group hereby irrevocably appoints and authorizes, and hereby agrees that it will
require any transferee of any of its interest in this Agreement and the other
Loan Documents and its Loans, Commitments and, if applicable, Letter of Credit
Commitment irrevocably to appoint and authorize, the Administrative Agent to
take such actions as its agent on its behalf and to exercise such powers
hereunder and under the other Loan Documents as are delegated by the terms
hereof and thereof, together with such powers as are reasonably incidental
thereto. Without limiting the foregoing, each member of the Lender Group hereby
authorizes the Administrative Agent to execute and deliver each Loan Document to
which the Administrative Agent is, or is required to be, a party. Neither the
Administrative Agent nor any of its directors, officers, employees, or agents
shall be liable for any action taken or omitted to be taken by it hereunder or
in connection herewith, except for its own gross negligence or willful
misconduct as determined by a final non-appealable order of a court of competent
jurisdiction.

      Section 10.2 Interest Holders. The Administrative Agent may treat each
Lender, or the Person designated in the last notice filed with the
Administrative Agent under this Section 10.2, as the holder of all of the
interests of such Lender in this Agreement and the other Loan Documents and its
Loans and Commitments until written notice of transfer, signed by such Lender
(or the Person designated in the last notice filed with the Administrative
Agent) and by the Person designated in such written notice of transfer, in form
and substance satisfactory to the Administrative Agent, shall have been filed
with the Administrative Agent.

      Section 10.3 Consultation with Counsel. The Administrative Agent may
consult with legal counsel selected by it and shall not be liable to any Lender
or the Issuing Lender for any action taken or suffered by it in good faith in
reliance on the advice of such counsel.

      Section 10.4 Documents. The Administrative Agent shall not be under any
duty to examine, inquire into, or pass upon the validity, effectiveness, or
genuineness of this Agreement, any other Loan Document, or any instrument,
document, or communication furnished pursuant hereto or in connection herewith,
and the Administrative Agent shall be entitled to assume that they are valid,
effective, and genuine, have been signed or sent by the proper parties, and are
what they purport to be.

      Section 10.5 Administrative Agent and Affiliates. With respect to the
Commitment and Loans, the Administrative Agent shall have the same rights and
powers hereunder as any other Lender, and the Administrative Agent and its
Affiliates may accept deposits from, lend money to, and generally engage in any
kind of business with the Borrower Parties or any Affiliates of, or Persons
doing business with, the Borrower Parties, as if it were not the Administrative
Agent or affiliated with the Administrative Agent and without any obligation to
account therefor. The Lenders and the Issuing Lender acknowledge that the
Administrative Agent and its Affiliates have other lending and investment
relationships with the Borrower Parties and their Affiliates and in the future
may enter into additional such relationships.

      Section 10.6 Responsibility of the Administrative Agent. Notwithstanding
any provision to the contrary contained elsewhere in this Agreement or in any
other Loan Document, the Administrative Agent shall not have any duties or
responsibilities, except those expressly set forth herein, nor shall the
Administrative Agent have or be deemed to have any fiduciary relationship with
any other member of the Lender Group, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into this
Agreement or any other Loan Document or otherwise exist against the
Administrative Agent. Without limiting the generality of the foregoing sentence,
the use of the term "agent" in this

                                       74
<PAGE>

Agreement with reference to the Administrative Agent is not intended to connote
any fiduciary or other implied (or express) obligations arising under agency
doctrine of any applicable law. Instead, such term is used merely as a matter of
market custom, and is intended to create or reflect only an administrative
relationship between independent contracting parties. The Administrative Agent
shall be entitled to assume that no Default exists unless it has actual
knowledge, or has been notified by the any Borrower Party, of such fact, or has
been notified by a Lender that such Lender considers that a Default exists, and
such Lender shall specify in detail the nature thereof in writing. The
Administrative Agent shall provide each Lender with copies of such documents
received from any Borrower Party as such Lender may reasonably request.

      Section 10.7 Action by Administrative Agent.

      (a) The Administrative Agent shall be entitled to use its discretion with
respect to exercising or refraining from exercising any rights which may be
vested in it by, and with respect to taking or refraining from taking any action
or actions which it may be able to take under or in respect of, this Agreement,
unless the Administrative Agent shall have been instructed by the Majority
Lenders to exercise or refrain from exercising such rights or to take or refrain
from taking such action. The Administrative Agent shall incur no liability under
or in respect of this Agreement with respect to anything which it may do or
refrain from doing in the reasonable exercise of its judgment or which may seem
to it to be necessary or desirable in the circumstances.

      (b) The Administrative Agent shall not be liable to the Lenders and the
Issuing Lender, or any of them, in acting or refraining from acting under this
Agreement or any other Loan Document in accordance with the instructions of the
Majority Lenders (or all Lenders if expressly required by Section 11.12), and
any action taken or failure to act pursuant to such instructions shall be
binding on all Lenders and the Issuing Lender.

      Section 10.8 Notice of Default. In the event that any member of the Lender
Group shall acquire actual knowledge, or shall have been notified in writing, of
any Default, such member of the Lender Group shall promptly notify the other
members of the Lender Group, and the Administrative Agent shall take such action
and assert such rights under this Agreement as the Majority Lenders shall
request in writing, and the Administrative Agent shall not be subject to any
liability by reason of its acting pursuant to any such request. If the Majority
Lenders shall fail to request the Administrative Agent to take action or to
assert rights under this Agreement in respect of any Default after their receipt
of the notice of any Default from a member of the Lender Group, or shall request
inconsistent action with respect to such Default, the Administrative Agent may,
but shall not be required to, take such action and assert such rights (other
than rights under Article 9) as it deems in its discretion to be advisable for
the protection of the Lender Group, except that, if the Majority Lenders have
instructed the Administrative Agent not to take such action or assert such
right, in no event shall the Administrative Agent act contrary to such
instructions.

      Section 10.9 Responsibility Disclaimed. The Administrative Agent shall not
be under any liability or responsibility whatsoever as Administrative Agent:

      (a) To any Borrower Party or any other Person or entity as a consequence
of any failure or delay in performance by or any breach by, any member of the
Lender Group of any of its obligations under this Agreement;

      (b) To any Lender Group, or any of them, as a consequence of any failure
or delay in performance by, or any breach by, any Borrower Party or any other
obligor of any of its obligations under this Agreement or any other Loan
Document; or

                                       75
<PAGE>

      (c) To any Lender Group, or any of them, for any statements,
representations, or warranties in this Agreement, or any other document
contemplated by this Agreement or any information provided pursuant to this
Agreement, any other Loan Document, or any other document contemplated by this
Agreement, or for the validity, effectiveness, enforceability, or sufficiency of
this Agreement, any other Loan Document, or any other document contemplated by
this Agreement.

      Section 10.10 Indemnification. The Lenders agree to indemnify (to the
extent not reimbursed by the Borrower) and hold harmless the Administrative
Agent and each of its employees, representatives, officers and directors (each
an "Administrative Agent Indemnified Person") pro rata in accordance with their
Aggregate Commitment Ratios from and against any and all claims, liabilities,
investigations, losses, damages, actions, demands, penalties, judgments, suits,
investigations, costs, expenses (including fees and expenses of experts, agents,
consultants and counsel) and disbursements, in each case, of any kind or nature
(whether or not an Administrative Agent Indemnified Person is a party to any
such action, suit or investigation) whatsoever which may be imposed on, incurred
by, or asserted against an Administrative Agent Indemnified Person resulting
from any breach or alleged breach by the Borrower Parties of any representation
or warranty made hereunder, or otherwise in any way relating to or arising out
of the Commitments, this Agreement, the other Loan Documents or any other
document contemplated by this Agreement or any action taken or omitted by the
Administrative Agent under this Agreement, any other Loan Document, or any other
document contemplated by this Agreement (other than Hedge Agreements), the
making, administration or enforcement of the Loan Documents and the Loans or any
transaction contemplated hereby or any related matters unless, with respect to
any of the above, such Administrative Agent Indemnified Person is determined by
a final non-appealable judgment of a court of competent jurisdiction to have
acted or failed to act with gross negligence or willful misconduct. This Section
10.10 is for the benefit of each Administrative Agent Indemnified Person and
shall not in any way limit the obligations of the Borrower Parties under Section
6.18. The provisions of this Section 10.10 shall survive the termination of this
Agreement.

      Section 10.11 Credit Decision. Each member of the Lender Group represents
and warrants to each other member of the Lender Group that:

      (a) In making its decision to enter into this Agreement and to make its
Advances it has independently taken whatever steps it considers necessary to
evaluate the financial condition and affairs of the Borrower Parties and that it
has made an independent credit judgment, and that it has not relied upon
information provided by the Administrative Agent;

      (b) So long as any portion of the Obligations remains outstanding, it will
continue to make its own independent evaluation of the financial condition and
affairs of the Borrower Parties; and

      (c) Except for notices, reports and other documents expressly herein
required to be furnished to the Lenders by the Administrative Agent, the
Administrative Agent shall not have any duty or responsibility to provide any
Lender with any credit or other information concerning the business, prospects,
operations, property, financial and other condition or creditworthiness of the
Borrower Parties which may come into the possession of any of the Administrative
Agent or any Affiliates of the Administrative Agent.

      Section 10.12 Successor Administrative Agent. Subject to the appointment
and acceptance of a successor Administrative Agent as provided below, the
Administrative Agent may resign at any time by giving written notice thereof to
the Lenders and the Borrower. Upon any such resignation, the Majority Lenders
shall have the right to appoint a successor Administrative Agent (with the
consent of the Borrower if no Event of Default then exists). If no successor
Administrative Agent shall have been so appointed by the Majority Lenders, and
shall have accepted such appointment within thirty (30) days after

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the retiring Administrative Agent's giving of notice of resignation, then the
retiring Administrative Agent may, on behalf of the Lenders, appoint a successor
Administrative Agent which shall be any Lender or a Person organized under the
laws of the US, a State or any political subdivision thereof which has combined
capital and reserves in excess of $250,000,000. Upon the acceptance of any
appointment as Administrative Agent hereunder by a successor Administrative
Agent, such successor Administrative Agent shall thereupon succeed to and become
vested with all the rights, powers, privileges, duties, and obligations of the
retiring Administrative Agent, and the retiring Administrative Agent shall be
discharged from its duties and obligations hereunder. After any retiring
Administrative Agent's resignation hereunder as Administrative Agent, the
provisions of Article 10 shall continue in effect for its benefit in respect of
any actions taken or omitted to be taken by it while it was acting as the
Administrative Agent.

      Section 10.13 Administrative Agent May File Proofs of Claim. The
Administrative Agent may file such proofs of claim and other papers or documents
as may be necessary or advisable in order to have the claims of the
Administrative Agent (including any claim for the reasonable compensation,
expenses, disbursements and advances of the Administrative Agent, its agents,
financial advisors and counsel), the Lenders and the Issuing Lender allowed in
any judicial proceedings relative to any Borrower Party, or any of their
respective creditors or property, and shall be entitled and empowered to
collect, receive and distribute any monies, securities or other property payable
or deliverable on any such claims and any custodian in any such judicial
proceedings is hereby authorized by each Lender and the Issuing Lender to make
such payments to the Administrative Agent and, in the event that the
Administrative Agent shall consent to the making of such payments directly to
the Lenders and the Issuing Lender, to pay to the Administrative Agent any
amount due to the Administrative Agent for the reasonable compensation,
expenses, disbursements and advances of the Administrative Agent, its agents,
financial advisors and counsel, and any other amounts due the Administrative
Agent under Section 11.2. Nothing contained in the Loan Agreement or the Loan
Documents shall be deemed to authorize the Administrative Agent to authorize or
consent to or accept or adopt on behalf of any Lender or the Issuing Lender any
plan of reorganization, arrangement, adjustment or composition affecting this
Agreement, any Notes, the Letters of Credit or the rights of any holder thereof,
or to authorize the Administrative Agent to vote in respect of the claim of any
Lender or the Issuing Lender in any such proceeding.

      Section 10.14 Collateral. The Administrative Agent is hereby authorized to
hold all Collateral pledged pursuant to any Loan Document and to act on behalf
of the Lender Group, in its own capacity and through other agents appointed by
it, under the Security Documents; provided, that the Administrative Agent shall
not agree to the release of any Collateral except in accordance with the terms
of this Agreement. The Lender Group acknowledges that the Loans, any
Overadvances, all Obligations with respect to Hedge Agreements and all interest,
fees and expenses hereunder constitute one Funded Debt, secured by all of the
Collateral. The Administrative Agent hereby appoints each Lender and the Issuing
Lender as its agent (and each Lender and the Issuing Lender hereby accepts such
appointment) for the purpose of perfecting the Administrative Agent's Liens in
assets which, in accordance with the UCC, can be perfected by possession. Should
any Lender or the Issuing Lender obtain possession of any such Collateral,
subject to the limitations set forth in the Block Account Agreements, promptly
upon the Administrative Agent's request therefor shall deliver such Collateral
to the Administrative Agent or in accordance with the Administrative Agent's
instructions.

      Section 10.15 Release of Collateral.

      (a) Each Lender and the Issuing Lender hereby directs, in accordance with
the terms of this Agreement, the Administrative Agent to release any Lien held
by the Administrative Agent for the benefit of the Lender Group:

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                  (i) against all of the Collateral, upon final and indefeasible
payment in full of the Obligations and termination of the Commitments; or

                  (ii) against any part of the Collateral sold or disposed of by
the Borrower Parties if such sale or disposition is permitted by Section 8.7 or
is otherwise consented to by the requisite Lenders for such release as set forth
in Section 11.12, as certified to the Administrative Agent by the Borrower in a
certificate of an Authorized Signatory.

      (b) Each Lender and the Issuing Lender hereby directs the Administrative
Agent to execute and deliver or file or authorize the filing of such termination
and partial release statements and do such other things as are necessary to
release Liens to be released pursuant to this Section 10.15 promptly upon the
effectiveness of any such release. Upon request by the Administrative Agent at
any time, the Lenders and the Issuing Lender will confirm in writing the
Administrative Agent's authority to release particular types or items of
Collateral pursuant to this Section 10.15.

                                   ARTICLE 11.

                                  MISCELLANEOUS

      Section 11.1 Notices.

      (a) All notices and other communications under this Agreement shall be in
writing and shall be deemed to have been given five (5) days after deposit in
the mail, designated as certified mail, return receipt requested,
postage-prepaid, or one (1) day after being entrusted to a reputable commercial
overnight delivery service, or when delivered to the telegraph office or sent
out (with receipt confirmed) by telex or telecopy addressed to the party to
which such notice is directed at its address determined as in this Section 11.1.
All notices and other communications under this Agreement shall be given to the
parties hereto at the following addresses:

                  (i) If to any Borrower Party, to such Borrower Party in care
of the Borrower at:

                                Securus Technologies, Inc.
                                c/o Evercom Systems, Inc.
                                8201 Tristar Drive
                                Irving, Texas 75063
                                Attn: Keith Kelson
                                Telecopy No.: (972) 988-3774
                                Email: KKelson@evercom.net

                                with a copy to:

                                H.I.G. Capital, LLC
                                1001 Brickell Bay Drive,
                                27th Floor
                                Miami, Florida 33131
                                Attn: Alex Moskovitz
                                Telecopy No.: (305) 379-2013
                                Email:amoskovitz@higcapital.com

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                                and:

                                White & Case LLP
                                200 South Biscayne Boulevard
                                50th Floor
                                Miami, Florida  33131
                                Attn: Jorge L. Freeland, Esq.
                                Telecopy No.: (305) 358-5744
                                Email: jfreeland@whitecase.com

                  (ii) If to the Administrative Agent, to it at:

                                ING Capital LLC
                                1325 Avenue of the Americas
                                New York, New York  10019
                                Attn: Lissette Ruiz, Associate
                                Telecopy No.: 646-424-8253
                                Email: lissette.ruiz@americas.ing.com

                                with a copy to:

                                Paul, Hastings, Janofsky & Walker LLP
                                600 Peachtree Street, N.E.
                                Suite 2400
                                Atlanta, Georgia 30308
                                Attn: Kevin Conboy, Esq.
                                Telecopy No.: (404) 815-2424
                                Email: kevinconboy@paulhastings.com

                  (iii) If to the Lenders, to them at the addresses set forth on
the signature pages of this Agreement; and

                  (iv) If to the Issuing Lender, at the address set forth on the
signature pages of this Agreement.

      (b) Any party hereto may change the address to which notices shall be
directed under this Section 11.1 by giving ten (10) days' prior written notice
of such change to the other parties.

      Section 11.2 Expenses. The Borrower agrees to promptly pay or promptly
reimburse:

      (a) All reasonable out-of-pocket expenses of the Administrative Agent in
connection with the preparation, negotiation, execution, delivery and
syndication of this Agreement, the other Loan Documents and the Hedge
Agreements, the transactions contemplated hereunder and thereunder, and the
making of the initial Advance hereunder, including, but not limited to, the
reasonable fees and disbursements of counsel for the Administrative Agent, and
allocated costs for services of internal counsel for the Administrative Agent;

      (b) All reasonable out-of-pocket expenses of the Administrative Agent in
connection with the administration of the transactions contemplated in this
Agreement, the other Loan Documents and the Hedge Agreements, and the
preparation, negotiation, execution, and delivery of any waiver, amendment,

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or consent by the Lenders relating to this Agreement or the other Loan
Documents, including, but not limited to, all out-of-pocket expenses of the
Administrative Agent in connection with its periodic field audits and the fees
and disbursements of counsel for the Administrative Agent and allocated costs
for services of internal counsel for the Administrative Agent;

      (c) All reasonable out-of-pocket costs and expenses of the Administrative
Agent, the Issuing Lender and any Lender in connection with any restructuring,
refinancing, or "work out" of the transactions contemplated by this Agreement,
and of obtaining performance under this Agreement, the other Loan Documents and
the Hedge Agreements, and all reasonable out-of-pocket costs and expenses of
collection if default is made in the payment of the Obligations, which in each
case shall include fees and out-of-pocket expenses of counsel for the
Administrative Agent, the Issuing Lender and any Lender, and the fees and
out-of-pocket expenses of any experts of the Administrative Agent, or
consultants of the Administrative Agent, including in each case, but without in
any way limiting the generality of the foregoing, allocated costs for service of
their internal counsel; and

      (d) All taxes, assessments, general or special, and other charges levied
on, or assessed, placed or made against any of the Collateral, any Notes or the
Obligations.

      Section 11.3 Waivers. The rights and remedies of the Lender Group under
this Agreement, the other Loan Documents and the Hedge Agreements shall be
cumulative and not exclusive of any rights or remedies which they would
otherwise have. No failure or delay by the Lender Group, or any of them, or the
Majority Lenders in exercising any right shall operate as a waiver of such
right. The Lender Group expressly reserve the right to require strict compliance
with the terms of this Agreement in connection with any funding of a request for
an Advance. In the event the Lenders decide to fund a request for an Advance at
a time when the Borrower is not in strict compliance with the terms of this
Agreement, such decision by the Lenders shall not be deemed to constitute an
undertaking by the Lenders to fund any further requests for Advances or preclude
the Lenders from exercising any rights available to the Lenders under the Loan
Documents or at law or equity. Any waiver or indulgence granted by the Lenders
or by the Majority Lenders shall not constitute a modification of this
Agreement, except to the extent expressly provided in such waiver or indulgence,
or constitute a course of dealing by the Lenders at variance with the terms of
the Agreement such as to require further notice by the Lenders of the Lenders'
intent to require strict adherence to the terms of the Agreement in the future.
Any such actions shall not in any way affect the ability of the Lenders, in
their discretion, to exercise any rights available to them under this Agreement
or under any other agreement, whether or not the Lenders are party, relating to
the Borrower.

      Section 11.4 Set-Off. In addition to any rights now or hereafter granted
under Applicable Law and not by way of limitation of any such rights, except to
the extent limited by Applicable Law, at any time that a Default exists, each
member of the Lender Group and each subsequent holder of the Obligations is
hereby authorized by the Borrower Parties at any time or from time to time,
without notice to the Borrower Parties or to any other Person, any such notice
being hereby expressly waived, to set-off and to appropriate and apply any and
all deposits (general or special, time or demand, including, but not limited to,
Funded Debt evidenced by certificates of deposit, in each case whether matured
or unmatured, but not including any amounts held by any member of the Lender
Group or any of its Affiliates in any escrow account) and any other Funded Debt
at any time held or owing by any member of the Lender Group or any such holder
to or for the credit or the account of any Borrower Party, against and on
account of the obligations and liabilities of the Borrower Parties, to any
member of the Lender Group or any such holder under this Agreement, any Notes,
any other Loan Document and any Hedge Agreements, including, but not limited to,
all claims of any nature or description arising out of or connected with this
Agreement, any Notes, any other Loan Document or any Hedge Agreements,
irrespective of whether or not (a) the Lender Group shall have made any demand
hereunder or (b) the Lender Group shall have declared the principal of and
interest on the Loans and any Notes and other amounts due hereunder to be

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due and payable as permitted by Section 9.2 and although said obligations and
liabilities, or any of them, shall be contingent or unmatured. Any sums obtained
by any member of the Lender Group or by any subsequent holder of the Obligations
shall be subject to the application of payments provisions of Article 2.

      Section 11.5 Assignment.

      (a) The provisions of this Agreement shall be binding upon and inure to
the benefit of the parties hereto and their respective successors and assigns
permitted hereby, except that no Borrower Party may assign or otherwise transfer
any of its rights or obligations hereunder without the prior written consent of
each Lender (and any attempted assignment or transfer by any Borrower Party
without such consent shall be null and void). Nothing in this Agreement,
expressed or implied, shall be construed to confer upon any Person (other than
the parties hereto, their respective successors and assigns permitted hereby
and, to the extent expressly contemplated hereby, the Affiliates of the
Administrative Agent) any legal or equitable right, remedy or claim under or by
reason of this Agreement.

      (b) Any Lender (and any Lender that is an Issuing Lender) may assign to
one or more Eligible Assignees all or a portion of its rights and obligations
under this Agreement (including all or a portion of its Commitment and the Loans
at the time owing to it and, if applicable, all or a portion of its Letter of
Credit Commitment and excluding rights and obligations with respect to Hedge
Agreements); provided that (i) except in the case of an assignment of the entire
remaining amount of the assigning Lender's Commitment and the Loans at the time
owing to it or in the case of an assignment to a Lender or an Affiliate of a
Lender or an Approved Fund with respect to a Lender, the aggregate amount of the
Commitment of the assigning Lender subject to each such assignment (determined
as of the date the Assignment and Acceptance with respect to such assignment is
delivered to the Administrative Agent) shall not be less than $5,000,000, unless
each of the Administrative Agent and, so long as no Event of Default exists, the
Borrower otherwise consents (each such consent not to be unreasonably withheld
or delayed), and (ii) the parties to each assignment shall execute and deliver
to the Administrative Agent an Assignment and Acceptance, together with a
processing and recordation fee of $3,500, and the Eligible Assignee, if it shall
not be a Lender, shall deliver to the Administrative Agent an Administrative
Questionnaire. Subject to acceptance and recording thereof by the Administrative
Agent pursuant to paragraph (c) of this Section, from and after the effective
date specified in each Assignment and Acceptance, the Eligible Assignee
thereunder shall be a party hereto and, to the extent of the interest assigned
by such Assignment and Acceptance, have the rights and obligations of a Lender
under this Agreement, and the assigning Lender thereunder shall, to the extent
of the interest assigned by such Assignment and Acceptance, be released from its
obligations under this Agreement (and, in the case of an Assignment and
Acceptance covering all of the assigning Lender's rights and obligations under
this Agreement, such Lender shall cease to be a party hereto but shall continue
to be entitled to the benefits of Sections 2.8(b), 2.9, 6.18, 12.3 and 12.5. Any
assignment or transfer by a Lender of rights or obligations under this Agreement
that does not comply with this paragraph shall be treated for purposes of this
Agreement as a sale by such Lender of a participation in such rights and
obligations in accordance with paragraph (d) of this Section.

      (c) The Administrative Agent, acting solely for this purpose as an agent
of the Borrower, shall maintain at the Administrative Agent's Office a copy of
each Assignment and Acceptance delivered to it and a register for the
recordation of the names and addresses of the Lenders, and the Commitments of,
and principal amount of the Loans owing to, each Lender pursuant to the terms
hereof from time to time (the "Register"). The entries in the Register shall be
conclusive, and the Borrower, the Administrative Agent and the Lenders may treat
each Person whose name is recorded in the Register pursuant to the terms hereof
as a Lender hereunder for all purposes of this Agreement, notwithstanding

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notice to the contrary. The Register shall be available for inspection by the
Borrower and any Lender, at any reasonable time and from time to time upon
reasonable prior notice.

      (d) Any Lender may, without the consent of, or notice to, the Borrower or
the Administrative Agent, sell participations to one or more banks or other
entities (a "Participant") in all or a portion of such Lender's rights and/or
obligations under this Agreement (including all or a portion of its Commitment
and/or the Loans owing to it); provided that (i) such Lender's obligations under
this Agreement shall remain unchanged, (ii) such Lender shall remain solely
responsible to the other parties hereto for the performance of such obligations
and (iii) the Borrower and the Lender Group shall continue to deal solely and
directly with such Lender in connection with such Lender's rights and
obligations under this Agreement. Any agreement or instrument pursuant to which
a Lender sells such a participation shall provide that such Lender shall retain
the sole right to enforce this Agreement and to approve any amendment,
modification or waiver of any provision of this Agreement; provided that such
agreement or instrument may provide that such Lender will not, without the
consent of the Participant, agree to any amendment, modification or waiver
described in Section 11.12(a)(i) that affects such Participant. Subject to
paragraph (e) of this Section, the Borrower agrees that each Participant shall
be entitled to the benefits of Sections 2.8(b), 2.9, 6.18, 6.19(c) and 12.3 to
the same extent as if it were a Lender and had acquired its interest by
assignment pursuant to paragraph (b) of this Section. To the extent permitted by
law, each Participant also shall be entitled to the benefits of Section 11.4 as
though it were a Lender, provided such Participant agrees to be subject to
Section 2.8(b) as though it were a Lender.

      (e) A Participant shall not be entitled to receive any greater payment
under Section 2.8(b) or Section 12.3 than the applicable Lender would have been
entitled to receive with respect to the participation sold to such Participant,
unless the sale of the participation to such Participant is made with the
Borrower's prior written consent. A Participant that would be a Foreign Lender
if it were a Lender shall not be entitled to the benefits of Section 2.8(b)
unless the Borrower is notified of the participation sold to such Participant
and such Participant agrees, for the benefit of the Borrower, to comply with
Section 2.8(b) as though it were a Lender.

      (f) Any Lender may at any time pledge or assign a security interest in all
or any portion of its rights under this Agreement to secure obligations of such
Lender, including without limitation (i) any pledge or assignment to secure
obligations to a Federal Reserve Bank and (ii) in the case of any Lender that is
a Fund, any pledge or assignment of all or any portion of such Lender's rights
under this Agreement to any holders of obligations owed, or securities issued,
by such Lender as security for such obligations or securities, or to any trustee
for, or any other representative of, such holders, and this Section shall not
apply to any such pledge or assignment of a security interest; provided that no
such pledge or assignment of a security interest shall release a Lender from any
of its obligations hereunder or substitute any such pledgee or assignee for such
Lender as a party hereto.

      Section 11.6 Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed to be an original, but all such
separate counterparts shall together constitute but one and the same instrument.
In proving this Agreement or any other Loan Document in any judicial
proceedings, it shall not be necessary to produce or account for more than one
such counterpart signed by the party against whom such enforcement is sought.
Any signatures delivered by a party by facsimile transmission or by e-mail
transmission of an adobe file format document (also known as a PDF file) shall
be deemed an original signature hereto.

      Section 11.7 Under Seal; Governing Law. This Agreement and the other Loan
Documents are intended to take effect as sealed instruments and shall be
construed in accordance with and governed by the laws of the State of New York,
without regard to the conflict of laws principles thereof, except to the extent
otherwise provided in the Loan Documents.

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      Section 11.8 Severability. Any provision of this Agreement which is
prohibited or unenforceable shall be ineffective to the extent of such
prohibition or unenforceability without invalidating the remaining provisions
hereof in that jurisdiction or affecting the validity or enforceability of such
provision in any other jurisdiction.

      Section 11.9 Headings. Headings used in this Agreement are for convenience
only and shall not be used in connection with the interpretation of any
provision hereof.

      Section 11.10 Source of Funds. Notwithstanding the use by the Lenders of
the Prime Rate and the Eurodollar Rate as reference rates for the determination
of interest on the Loans, the Lenders shall be under no obligation to obtain
funds from any particular source in order to charge interest to the Borrower at
interest rates tied to such reference rates.

      Section 11.11 Entire Agreement. THIS WRITTEN AGREEMENT, TOGETHER WITH THE
OTHER LOAN DOCUMENTS, REPRESENTS 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. Each Borrower Party represents and warrants to the Lender Group that it
has read the provisions of this Section 11.11 and discussed the provisions of
this Section 11.11 and the rest of this Loan Agreement with counsel for such
Borrower Party, and such Borrower Party acknowledges and agrees that the Lender
Group is expressly relying upon such representations and warranties of such
Borrower Party (as well as the other representations and warranties of such
Borrower Party set forth in this Agreement and the other Loan Documents) in
entering into this Agreement.

      Section 11.12 Amendments and Waivers.

      (a) Neither this Agreement, any other Loan Document nor any term hereof or
thereof may be amended orally, nor may any provision hereof be waived orally but
only by an instrument in writing signed by the Majority Lenders, or in the case
of Loan Documents executed by the Administrative Agent (and not the other
members of the Lender Group), signed by the Administrative Agent and approved by
the Majority Lenders and, in the case of an amendment, also by the Borrower,
except that (i) the consent of each of the Lenders shall be required for (A) any
sale or release of, or the subordination of the Administrative Agent's security
interest in, all or any substantial part of the Collateral except in conjunction
with sales or transfers of Collateral permitted hereunder or any release of any
guarantor of the Obligations, (B) any extensions, postponements or delays of the
Maturity Date or the scheduled date of payment of interest or principal or fees,
or any reduction of principal (without a corresponding payment with respect
thereto), or reduction in the rate of interest or fees due to the Lenders
hereunder or under any other Loan Documents, (C) any amendment of this Section
11.12 or of the definition of "Majority Lenders" or any other provision of the
Loan Documents specifying the number or percentage of Lenders required to waive,
amend or modify any rights thereunder or make any determination or grant any
consent thereunder, (D) any amendment increasing the Commitments (it being
understood and agreed that a waiver of any Default or modification of any of the
defined terms contained herein (other than those defined terms specifically
addressed in this Section 11.12) shall not constitute a change in the terms of
the Commitments of any Lender), (E) any amendment increasing the amounts or
percentages set forth in the definition of "Borrowing Base", (F) any amendment
to the definition of "Availability", and (G) any amendment to Section 2.11; (ii)
the consent of the Administrative Agent, the Majority Lenders and the Borrower
shall be required for any amendment to Section 2.1(d) or Article 10; (iii) the
consent of the Issuing Lender, the Majority Lenders and the Borrower shall be
required for any amendment to Section 2.1(b) or 2.15 or the definition of
"Letter of Credit Commitment"; (iv) the consent of the Guarantors and the
Majority Lenders shall be required for any amendment to Article 3; and (v) the
consent of the

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Administrative Agent only shall be required to amend Schedule 1(a) hereto to
reflect assignments of the Commitments and Loans in accordance with this
Agreement. In addition to the required consents set forth above, if ING Capital
LLC or any Affiliate thereof has entered into a Hedge Agreement with any
Borrower Party and ING Capital LLC is no longer the Administrative Agent or a
Lender, the consent of ING Capital LLC or such Affiliate shall be required for
any amendment to Section 2.11 or any amendment described in clause (A) above.
Any amendment, modification, waiver, consent, termination or release of any
Hedge Agreements may be effected by the parties thereto without the consent of
the Lender Group.

      (b) Each Lender grants to the Administrative Agent the right to purchase
all (but not less than all) of such Lender's Commitment, Letter of Credit
Commitment, the Loans and Letter of Credit Obligations owing to it and any Notes
held by it and all of its rights and obligations hereunder and under the other
Loan Documents at a price equal to the outstanding principal amount of the Loans
payable to such Lender plus any accrued but unpaid interest on such Loans and
accrued but unpaid commitment fees and letter of credit fees owing to such
Lender plus the amount necessary to cash collateralize any Letters of Credit
issued by such Lender, which right may be exercised by the Administrative Agent
if such Lender refuses to execute any amendment, waiver or consent which
requires the written consent of all of the Lenders and to which the Majority
Lenders, the Administrative Agent and the Borrower have agreed. Each Lender
agrees that if the Administrative Agent exercises its option hereunder, it shall
promptly execute and deliver an Assignment and Acceptance and other agreements
and documentation necessary to effectuate such assignment. The Administrative
Agent may assign its purchase rights hereunder to any assignee if such
assignment complies with the requirements of Section 11.5(b).

      (c) If any fees are paid to the Lenders as consideration for amendments,
waivers or consents with respect to this Agreement, at Administrative Agent's
election, such fees may be paid only to those Lenders that agree to such
amendments, waivers or consents within the time specified for submission
thereof.

      Section 11.13 Other Relationships. No relationship created hereunder or
under any other Loan Document shall in any way affect the ability of any member
of the Lender Group to enter into or maintain business relationships with the
Borrower, or any of its Affiliates, beyond the relationships specifically
contemplated by this Agreement and the other Loan Documents.

      Section 11.14 Pronouns. The pronouns used herein shall include, when
appropriate, either gender and both singular and plural, and the grammatical
construction of sentences shall conform thereto.

      Section 11.15 Disclosure. The Borrower Parties agree that the
Administrative Agent shall have the right to issue press releases regarding the
making of the Loans and issuance and the Commitments to the Borrower pursuant to
the terms of this Agreement.

      Section 11.16 Replacement of Lender. In the event that a Replacement Event
occurs and is continuing with respect to any Lender, the Borrower may designate
another financial institution (such financial institution being herein called a
"Replacement Lender") acceptable to the Administrative Agent, and which is not
the Borrower or an Affiliate of the Borrower, to assume such Lender's Commitment
hereunder, to purchase the Loans and participations of such Lender and such
Lender's rights hereunder and (if such Lender is the Issuing Lender) to issue
Letters of Credit in substitution for all outstanding Letters of Credit issued
by such Lender, without recourse to or representation or warranty by, or expense
to, such Lender for a purchase price equal to the outstanding principal amount
of the Loans payable to such Lender plus any accrued but unpaid interest on such
Loans and accrued but unpaid commitment fees and letter of credit fees owing to
such Lender plus amounts necessary to cash collateralize any Letters of Credit
issued by such Lender, and upon such assumption, purchase and substitution, and
subject to the

                                       84

<PAGE>

execution and delivery to the Administrative Agent by the Replacement Lender of
documentation satisfactory to the Administrative Agent (pursuant to which such
Replacement Lender shall assume the obligations of such original Lender under
this Agreement), the Replacement Lender shall succeed to the rights and
obligations of such Lender hereunder and such Lender shall no longer be a party
hereto or have any rights hereunder provided that the obligations of the
Borrower to indemnify such Lender with respect to any event occurring or
obligations arising before such replacement shall survive such replacement.
"Replacement Event" shall mean, with respect to any Lender, (a) the commencement
of or the taking of possession by, a receiver, custodian, conservator, trustee
or liquidator of such Lender, or the declaration by the appropriate regulatory
authority that such Lender is insolvent, (b) the failure by a Lender to fund its
portion of any Advance as described in Section 2.2(e) or (c) the making of any
claim by any Lender under Section 2.8(b), 12.3 or 12.5, unless the changing of
the lending office by such Lender would obviate the need of such Lender to make
future claims under such Sections.

      Section 11.17 Confidentiality. No member of the Lender Group shall
disclose any non-public confidential information regarding the Borrower Parties
("Confidential Information") to any other Person without the consent of the
Borrower, other than (i) to such member of the Lender Group's Affiliates and
their officers, directors, employees, agents and advisors, to other members of
the Lender Group and, as contemplated by Section 11.5, to actual or prospective
assignees and participants, and then only on a confidential basis, (ii) as
required by any law, rule or regulation or judicial process, (iii) to any rating
agency when required by it, provided, that, prior to any such disclosure, such
rating agency shall undertake to preserve the confidentiality of any
Confidential Information relating to the Borrower Parties received by it from
such member of the Lender Group, (iv) as requested or required by any state,
federal or foreign authority or examiner regulating banks or banking, and (v) in
connection with the exercise of any remedy hereunder or any suit, action or
proceeding relating to this Agreement or any other Loan Document or the
enforcement of rights hereunder or thereunder.

      Section 11.18 Revival and Reinstatement of Obligations. If the incurrence
or payment of the Obligations by the Borrower or any Guarantor, or the transfer
to the Lender Group of any property, should for any reason subsequently be
declared to be void or voidable under any state or federal law relating to
creditors' rights, including provisions of the Bankruptcy Code relating to
fraudulent conveyances, preferences or other voidable or recoverable payments of
money or transfers of property (collectively, a "Voidable Transfer"), and if the
Lender Group, or any of them, is required to repay or restore, in whole or in
part, any such Voidable Transfer, or elects to do so upon the reasonable advice
of its counsel, then, as to any such Voidable Transfer, or the amount thereof
that the Lender Group, or any of them, is required or elects to repay or
restore, and as to all reasonable costs, expenses and attorneys' fees of the
Lender Group related thereto, the liability of the Borrower or such Guarantor,
as applicable, automatically shall be revived, reinstated and restored and shall
exist as though such Voidable Transfer had never been made.

      Section 11.19 USA Patriot Act. The Administrative Agent (for itself and
not on behalf of any Lender) and each Lender that is subject to the USA Patriot
Act hereby notify the Borrower that, pursuant to the requirements of the USA
Patriot Act, it is required to obtain, verify and record information that
identifies the Borrower Parties, which information includes the name and address
of the Borrower Parties and other information that will allow such Lender or the
Administrative Agent, as applicable, to identify such Borrower Party in
accordance with the USA Patriot Act.

                                       85

<PAGE>

                                  ARTICLE 12.

                                YIELD PROTECTION

      Section 12.1 Eurodollar Rate Basis Determination. Notwithstanding anything
contained herein which may be construed to the contrary, if with respect to any
proposed Eurodollar Advance for any Eurodollar Advance Period, the
Administrative Agent determines that deposits in Dollars (in the applicable
amount) are not being offered to leading banks in the London interbank market
for such Eurodollar Advance Period, the Administrative Agent shall forthwith
give notice thereof to the Borrower and the Lenders, whereupon until the
Administrative Agent notifies the Borrower that the circumstances giving rise to
such situation no longer exist, the obligations of the Lenders to make
Eurodollar Advances shall be suspended.

      Section 12.2 Illegality. If any change in Applicable Law, any change in
the interpretation or administration of any Applicable Law by any governmental
authority, central bank, or comparable agency charged with the interpretation or
administration thereof, or any change in compliance with Applicable Law as a
result of any request or directive (whether or not having the force of law) of
any such authority, central bank, or comparable agency after the Agreement Date,
shall make it unlawful or impossible for any Lender to make, maintain, or fund
its Eurodollar Advances, such Lender shall so notify the Administrative Agent,
and the Administrative Agent shall forthwith give notice thereof to the other
Lenders and the Borrower. Before giving any notice to the Administrative Agent
pursuant to this Section 12.2, such Lender shall designate a different lending
office if such designation will avoid the need for giving such notice and will
not, in the judgment of such Lender, be otherwise disadvantageous to such
Lender. Upon receipt of such notice, notwithstanding anything contained in
Article 2, the Borrower shall repay in full the then outstanding principal
amount of each affected Eurodollar Advance of such Lender, together with accrued
interest thereon, either (a) on the last day of the then current Eurodollar
Advance Period applicable to such Eurodollar Advance if such Lender may lawfully
continue to maintain and fund such Eurodollar Advance to such day or (b)
immediately if such Lender may not lawfully continue to fund and maintain such
Eurodollar Advance to such day. Concurrently with repaying each affected
Eurodollar Advance of such Lender, notwithstanding anything contained in Article
2, the Borrower shall borrow a Prime Rate Advance from such Lender, and such
Lender shall make such Advance in an amount such that the outstanding principal
amount of the Revolving Loans held by such Lender shall equal the outstanding
principal amount of such Revolving Loans immediately prior to such repayment.

      Section 12.3 Increased Costs.

      (a) If any change in Applicable Law, any change in the interpretation or
administration of any Applicable Law by any governmental authority, central
bank, or comparable agency charged with the interpretation or administration
thereof or any change in compliance with Applicable Law as a result of any
request or directive (whether or not having the force of law) of such
governmental authority, central bank, or comparable agency after the Agreement
Date:

                  (i) Shall subject any Lender to any tax, duty, or other charge
with respect to its obligation to make Eurodollar Advances, or its Eurodollar
Advances, or shall change the basis of taxation of payments to any Lender of the
principal of or interest on its Eurodollar Advances or in respect of any other
amounts due under this Agreement in respect of its Eurodollar Advances or its
obligation to make Eurodollar Advances (except for changes in the rate of tax on
the overall net income of such Lender);

                  (ii) Shall impose, modify, or deem applicable any reserve
(including, without limitation, any imposed by the Board of Governors of the
Federal Reserve System, but excluding any

                                       86

<PAGE>

included in an applicable Eurodollar Reserve Percentage), special deposit,
assessment, or other requirement or condition against assets of, deposits (other
than as described in Section 12.5) with or for the account of, or commitments or
credit extended by any Lender, or shall impose on any Lender or the eurodollar
interbank borrowing market any other condition affecting its obligation to make
such Eurodollar Advances or its Eurodollar Advances; and the result of any of
the foregoing is to increase the cost to such Lender of making or maintaining
any such Eurodollar Advances, or to reduce the amount of any sum received or
receivable by the Lender under this Agreement or under any Notes with respect
thereto, and such increase is not given effect in the determination of the
Eurodollar Rate;

                  (iii) Shall subject the Issuing Lender or any Lender to any
tax, duty or other charge with respect to the obligation to issue Letters of
Credit, maintain Letters of Credit or participate in Letters of Credit, or shall
change the basis of taxation of payments to the Issuing Lender or any Lender in
respect of amounts drawn under Letters of Credit or in respect of any other
amounts due under this Agreement in respect of Letters of Credit or the
obligation of the Issuing Lender to issue Letters of Credit or maintain Letters
of Credit or the obligation of the Lenders to participate in Letters of Credit
(except for changes in the rate of tax on the overall net income of the Issuing
Lender or any Lender); or

                  (iv) Shall impose, modify, or deem applicable any reserve
(including, without limitation, any imposed by the Board of Governors of the
Federal Reserve System), special deposit, assessment, or other requirement or
condition against assets of, deposits (other than as described in Section 12.5)
with or for the account of, or commitments or credit extended by the Issuing
Lender, or shall impose on the Issuing Lender or any Lender any other condition
affecting the obligation to issue Letters of Credit, maintain Letters of Credit
or participate in Letters of Credit; and the result of any of the foregoing is
to increase the cost to the Issuing Lender or any Lender of issuing, maintaining
or participating in any such Letters of Credit or to reduce the amount of any
sum received or receivable by the Issuing Lender or any Lender under this
Agreement with respect thereto,

then promptly upon demand by such Lender or Issuing Lender, the Borrower agrees
to pay, without duplication of amounts due under Section 2.8(b), to such Lender
or Issuing Lender such additional amount or amounts as will compensate such
Lender or Issuing Lender for such increased costs. Each Lender or Issuing Lender
will promptly notify the Borrower and the Administrative Agent of any event of
which it has knowledge, occurring after the date hereof, which will entitle such
Lender or the Issuing Lender to compensation pursuant to this Section 12.3 and
will designate a different lending office if such designation will avoid the
need for, or reduce the amount of, such compensation and will not, in the sole
judgment of such Lender or the Issuing Lender, be otherwise disadvantageous to
such Lender or the Issuing Lender.

      (b) A certificate of any Lender or the Issuing Lender claiming
compensation under this Section 12.3 and setting forth the additional amount or
amounts to be paid to it hereunder and calculations therefor shall be conclusive
in the absence of manifest error. In determining such amount, such Lender or the
Issuing Lender may use any reasonable averaging and attribution methods. If any
Lender demands compensation under this Section 12.3, the Borrower may at any
time, upon at least five (5) Business Days' prior notice to such Lender, prepay
in full the then outstanding affected Eurodollar Advances of such Lender,
together with accrued interest thereon to the date of prepayment, along with any
reimbursement required under Section 2.9. Concurrently with prepaying such
Eurodollar Advances, the Borrower shall borrow a Prime Rate Advance, or a
Eurodollar Advance not so affected, from such Lender, and such Lender shall make
such Advance in an amount such that the outstanding principal amount of the
Revolving Loans held by such Lender shall equal the outstanding principal amount
of such Revolving Loans immediately prior to such prepayment.

                                       87

<PAGE>

      Section 12.4 Effect On Other Advances. If notice has been given pursuant
to Section 12.1, 12.2 or 12.3 suspending the obligation of any Lender to make
any, or requiring Eurodollar Advances of any Lender to be repaid or prepaid,
then, unless and until such Lender (or, in the case of Section 12.1, the
Administrative Agent) notifies the Borrower that the circumstances giving rise
to such repayment no longer apply, all Advances which would otherwise be made by
such Lender as to the Eurodollar Advances affected shall, at the option of the
Borrower, be made instead as Prime Rate Advances.

      Section 12.5 Capital Adequacy. If after the Agreement Date, any Lender or
Issuing Lender (or any Affiliate of the foregoing) shall have reasonably
determined that the adoption of any applicable law, governmental rule,
regulation or order regarding the capital adequacy of banks or bank holding
companies, or any change therein, or any change in the interpretation or
administration thereof by any governmental authority, central bank or comparable
agency charged with the interpretation or administration thereof, or compliance
by such Lender or Issuing Lender (or any Affiliate of the foregoing) with any
request or directive regarding capital adequacy (whether or not having the force
of law) of any such governmental authority, central bank or comparable agency
(but only if such adoption, change, request or directive occurs after the
Agreement Date), has or would have the effect of reducing the rate of return on
such Lender's or Issuing Lender's (or any Affiliate of the foregoing) capital as
a consequence of such Lender's or Issuing Lender's Commitment or obligations
hereunder to a level below that which it could have achieved but for such
adoption, change or compliance (taking into consideration such Lender's or
Issuing Lender's (or any Affiliate of the foregoing) policies with respect to
capital adequacy immediately before such adoption, change or compliance and
assuming that such Lender's or Issuing Lender's (or any Affiliate of the
foregoing) capital was fully utilized prior to such adoption, change or
compliance), then, promptly upon demand by such Lender or Issuing Lender, the
Borrower shall immediately pay to such Lender or Issuing Lender such additional
amounts as shall be sufficient to compensate such Lender or Issuing Lender for
any such reduction actually suffered; provided, however, that there shall be no
duplication of amounts paid to a Lender pursuant to this sentence and Section
12.3 hereof. A certificate of such Lender or Issuing Lender setting forth the
amount to be paid to such Lender or Issuing Lender by the Borrower as a result
of any event referred to in this paragraph shall, absent manifest error, be
conclusive.

                                  ARTICLE 13.

                  JURISDICTION, VENUE AND WAIVER OF JURY TRIAL

      Section 13.1 Jurisdiction and Service of Process. FOR PURPOSES OF ANY
LEGAL ACTION OR PROCEEDING BROUGHT BY ANY MEMBER OF THE LENDER GROUP WITH
RESPECT TO THIS AGREEMENT, ANY OTHER LOAN DOCUMENT OR ANY HEDGE AGREEMENT, EACH
BORROWER PARTY AND EACH MEMBER OF THE LENDER GROUP HEREBY IRREVOCABLY SUBMITS TO
THE PERSONAL JURISDICTION OF THE FEDERAL AND STATE COURTS SITTING IN THE STATE
OF NEW YORK AND HEREBY IRREVOCABLY DESIGNATES AND APPOINTS, AS ITS AUTHORIZED
AGENT FOR SERVICE OF PROCESS IN THE STATE OF NEW YORK, THE SECRETARY OF STATE OF
NEW YORK, OR SUCH OTHER PERSON AS SUCH BORROWER PARTY SHALL DESIGNATE HEREAFTER
BY WRITTEN NOTICE GIVEN TO THE ADMINISTRATIVE AGENT. THE CONSENT TO JURISDICTION
HEREIN SHALL NOT BE EXCLUSIVE. THE LENDER GROUP SHALL FOR ALL PURPOSES
AUTOMATICALLY, AND WITHOUT ANY ACT ON THEIR PART, BE ENTITLED TO TREAT SUCH
DESIGNEE OF EACH BORROWER PARTY AS THE AUTHORIZED AGENT TO RECEIVE FOR AND ON
BEHALF OF SUCH BORROWER PARTY SERVICE OF WRITS, OR SUMMONS OR OTHER LEGAL
PROCESS IN THE STATE OF NEW YORK, WHICH SERVICE SHALL BE DEEMED EFFECTIVE
PERSONAL SERVICE ON SUCH BORROWER PARTY SERVED WHEN DELIVERED, WHETHER OR NOT
SUCH AGENT GIVES NOTICE TO SUCH BORROWER

                                       88

<PAGE>

PARTY; AND DELIVERY OF SUCH SERVICE TO ITS AUTHORIZED AGENT SHALL BE DEEMED TO
BE MADE WHEN PERSONALLY DELIVERED OR THREE (3) BUSINESS DAYS AFTER MAILING BY
REGISTERED OR CERTIFIED MAIL ADDRESSED TO SUCH AUTHORIZED AGENT. EACH BORROWER
PARTY FURTHER IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN ANY SUCH ACTION OR
PROCEEDING BY THE MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL TO
SUCH BORROWER PARTY AT THE ADDRESS SET FORTH ABOVE, SUCH SERVICE TO BECOME
EFFECTIVE THREE (3) BUSINESS DAYS AFTER SUCH MAILING. IN THE EVENT THAT, FOR ANY
REASON, SUCH AGENT OR ITS SUCCESSORS SHALL NO LONGER SERVE AS AGENT OF EACH
BORROWER PARTY TO RECEIVE SERVICE OF PROCESS IN THE STATE OF NEW YORK, EACH
BORROWER PARTY SHALL SERVE AND ADVISE THE ADMINISTRATIVE AGENT THEREOF SO THAT
AT ALL TIMES EACH BORROWER PARTY WILL MAINTAIN AN AGENT TO RECEIVE SERVICE OF
PROCESS IN THE STATE OF NEW YORK ON BEHALF OF SUCH BORROWER PARTY WITH RESPECT
TO THIS AGREEMENT, ALL OTHER LOAN DOCUMENTS AND THE HEDGE AGREEMENTS. IN THE
EVENT THAT, FOR ANY REASON, SERVICE OF LEGAL PROCESS CANNOT BE MADE IN THE
MANNER DESCRIBED ABOVE, SUCH SERVICE MAY BE MADE IN SUCH MANNER AS PERMITTED BY
LAW.

      Section 13.2 Consent to Venue. EACH BORROWER PARTY AND EACH MEMBER OF THE
LENDER GROUP HEREBY IRREVOCABLY WAIVES ANY OBJECTION IT WOULD MAKE NOW OR
HEREAFTER FOR THE LAYING OF VENUE OF ANY SUIT, ACTION, OR PROCEEDING ARISING OUT
OF OR RELATING TO THIS AGREEMENT, ANY OTHER LOAN DOCUMENT OR ANY HEDGE AGREEMENT
BROUGHT IN THE FEDERAL COURTS OF THE UNITED STATES SITTING IN NEW YORK COUNTY,
NEW YORK, AND HEREBY IRREVOCABLY WAIVES ANY CLAIM THAT ANY SUCH SUIT, ACTION, OR
PROCEEDING HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

      Section 13.3 Waiver of Jury Trial. EACH BORROWER PARTY AND EACH MEMBER OF
THE LENDER GROUP WAIVES, AND OTHERWISE AGREES NOT TO REQUEST, A TRIAL BY JURY IN
ANY COURT AND IN ANY ACTION, PROCEEDING OR COUNTERCLAIM OF ANY TYPE IN WHICH ANY
BORROWER PARTY, ANY MEMBER OF THE LENDER GROUP OR ANY OF THEIR RESPECTIVE
SUCCESSORS OR ASSIGNS IS A PARTY, AS TO ALL MATTERS AND THINGS ARISING DIRECTLY
OR INDIRECTLY OUT OF THIS AGREEMENT, THE OTHER LOAN DOCUMENTS, THE HEDGE
AGREEMENTS AND THE RELATIONS AMONG THE PARTIES LISTED IN THIS ARTICLE 13.

                  [Remainder of page intentionally left blank.]

                                       89

<PAGE>

      IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed under seal by their duly authorized officers in all as of the day and
year first above written.

BORROWER:                    SECURUS TECHNOLOGIES, INC., a Delaware corporation,
                             as the Borrower

                             By:   /s/ Lewis Schoenwetter
                                  Title: Vice President

                             Attest: /s/ Brian Schwartz
                                    Title: Vice President

GUARANTORS:                  T-NETIX, INC., a Delaware corporation, as a
                             Guarantor

                             By:   /s/ Lewis Schoenwetter
                                 Title: Vice President

                             TELEQUIP LABS, INC., a Nevada corporation,
                             as a Guarantor

                             By:   /s/ Lewis Schoenwetter
                                 Title: Vice President

                             T-NETIX TELECOMMUNICATIONS SERVICES, INC., a Texas
                             corporation, as a Guarantor

                             By:   /s/ Lewis Schoenwetter
                                 Title: Vice President

                             SPEAKEZ, INC., a Colorado corporation, as a
                             Guarantor

                             By:   /s/ Lewis Schoenwetter
                                 Title: Vice President

CREDIT AGREEMENT

<PAGE>

                             T-NETIX MONITORING CORPORATION,
                             a Colorado corporation, as a Guarantor

                             By:   /s/ Lewis Schoenwetter
                                 Title: Vice President

                             EVERCOM HOLDINGS, INC., a Delaware corporation, as
                             a Guarantor

                             By:   /s/ Lewis Schoenwetter
                                 Title: Vice President

                             EVERCOM, INC., a Delaware corporation, as a
                             Guarantor

                             By:   /s/ Lewis Schoenwetter
                                 Title: Vice President

                             EVERCOM SYSTEMS, INC., a Delaware corporation, as a
                             Guarantor

                             By:   /s/ Lewis Schoenwetter
                                 Title: Vice President

                             FORTUNELINX, INC., a Delaware corporation, as a
                             Guarantor

                             By:   /s/ Lewis Schoenwetter
                                 Title: Vice President

                             EVERCONNECT, INC., a Delaware corporation, as a
                             Guarantor

                             By:   /s/ Lewis Schoenwetter
                                 Title: Vice President

ADMINISTRATIVE AGENT:        ING CAPITAL LLC, as the Administrative Agent

                             By:   /s/ John Lanier
                                 Title: Director

ISSUING LENDER:              ING CAPITAL LLC, as the Issuing Lender

CREDIT AGREEMENT

<PAGE>

                             By:   /s/ John Lanier
                                 Title: Director

                             Address: See address for Administrative Agent set
                                      forth in Section 11.1(a)

LENDERS:                     ING CAPITAL LLC, as a Lender

                             By:   /s/ John Lanier
                                 Title: Director

                             Address: See address for Administrative Agent set
                                      forth in Section 11.1(a)

CREDIT AGREEMENT

<PAGE>

                             NORTH FORK BUSINESS CAPITAL
                             CORPORATION, as a Lender

                             By:  /s/ Barry S. Fein
                                 Title: Senior Vice President

                             Addresses: North Fork Business Capital Corporation
                                        275 Broadhollow Road
                                        P.O. Box 8914
                                        Melville, New York 11747
                                        Attn: Michael S. Burns
                                        Telecopy No.: (631) 501-5524
                                        Email: Mburns@nfb.com

                                        North Fork Business Capital Corporation
                                        275 Broadhollow Road
                                        P.O. Box 8914
                                        Melville, New York 11747
                                        Attn: Barry Fein
                                        Telecopy No.: (631) 501-5524
                                        Email: Bfein@nfb.com

CREDIT AGREEMENT

<PAGE>

                                  Schedule 1(a)

                                Commitment Ratios

<TABLE>
<CAPTION>
                         Commitment
Lender       Commitment     Ratio
------       ----------  ----------
<S>          <C>         <C>
Totals       $_________       100%
</TABLE>

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