Document:

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                            ASSET PURCHASE AGREEMENT

Exhibit 10.1-1

      ASSET PURCHASE AGREEMENT (the "Agreement") made and entered into effective
as of the close of business October 31, 2000 by and among TEKGRAF, INC., a
Georgia corporation ("Seller"), MICRO ENVIRONMENTS, L.L.C., a Georgia limited
liability company ("Buyer"), and ANITA LTD., a corporation organized under the
laws of the British Virgin Islands ("Anita"). Buyer, Anita and Seller are
sometimes referred to herein collectively as the "Parties" and individually as a
"Party", and Buyer and Anita are sometimes referred to herein as the Buyer
Group.

                                    RECITALS

      WHEREAS, Anita is a party to that certain lawsuit captioned Tekgraf, Inc.,
a Georgia corporation, Plaintiff, v. Anita Ltd., Dan I. Bailey, Peter Goletz,
Michelle L. Lightman, and John W. Parrillo, Defendants, pending in the Superior
Court of Fulton County, Georgia, as Case No. 2000 CV 23746 (the "Lawsuit")
relating to the exercise of dissenters rights by Anita and others; and

      WHEREAS, Seller, through its "Tekgraf Systems" division, is engaged in the
business of the manufacture and sale of custom or "made to order" premium
servers and network workstations (the "Business") at its 2979 Pacific Drive
facility in Norcross, Georgia (the "Facility"); and

      WHEREAS, entering into this Agreement is in partial settlement of the
Lawsuit with respect to certain shares of Class A Common Stock (which were
formerly shares of Class B Common Stock), the fair value of which, among other
things, is the subject of the Lawsuit; and

      WHEREAS, Anita is the majority shareholder of Buyer, and Seller desires to
sell and Buyer desires to purchase substantially all of the operating assets
used by Seller in the Business, and Buyer is willing to assume certain
liabilities of Seller associated with the conduct of the Business; and

      NOW, THEREFORE, in consideration of the recitals, representations,
warranties, conditions and covenants contained herein, the Buyer Group and
Seller agree as follows:

1. PURCHASE AND SALE OF ASSETS

      1.1. Purchased Assets. On the terms and subject to the conditions and
exceptions contained herein, Seller agrees to sell, transfer, assign and deliver
to Buyer, and Buyer agrees to purchase at the Closing and on the Closing Date
(as each such term is hereinafter defined), all of Seller's right, title and
interest in and to the following assets and properties employed exclusively in
the conduct of the Business (collectively, the "Purchased Assets"):

            1.1.1. Tangible Personal Property. The machinery and equipment,
parts and accessories, data processing and graphics hardware and software,
furniture, fixtures, computers, tools and other tangible personal property used
in the conduct of the Business and located at the Facility (the "Tangible
Personal Property").

            1.1.2. Inventory. All of Seller's inventory, finished goods,
work-in-progress, raw materials and shipping supplies located at the Facility
and used or held for use in the conduct of the Business as the same may exist as
of the Closing Date (collectively, the "Inventory").

            1.1.3. Accounts Receivable. The trade and other accounts receivable
and all notes, bonds and other evidences of indebtedness of and rights to
receive payments arising out of sales occuring in the conduct of the Business
existing as of the Closing Date (collectively, the "Accounts Receivable").

            1.1.4. Certain Proprietary Rights. The copyrights, data processing
software, licenses, technology, trade secrets, know-how, customer lists,
customer files, inventions, formulations and formulation records, and other
proprietary information and rights (including all registrations and applications
therefor), if any, and the goodwill associated therewith, listed on Schedule
1.1.4.

            1.1.5. Business Contracts. The oral and written contracts used or
held for use in the conduct of the Business to which Sellers are a party and
which are described on Schedule 1.1.5 (the "Business Contracts");

            1.1.6. Leases. The leases and subleases of real property and
tangible personal property described in Schedule 1.1.6. as to which Seller is
the lessee or sublessee, together with any options to purchase the underlying
property and, with respect to real property, the improvements thereon, and in
each case all other rights, subleases, licenses, permits, deposits and profits
appurtenant to or related to such leases and subleases (the "Leases");

            1.1.7. Licenses. To the extent their transfer is permitted under the
terms thereof or under applicable laws, the licenses, permits, provider numbers,
orders, franchises, registrations and approvals (including applications
therefor) used in the conduct of the Business including, without limitation,
those listed in Schedule 1.1.7 hereto (the "Business Licenses");

            1.1.8. Books and Records. All books and records located at the
Facility and used in the conduct of the Business or otherwise relating to the
Assets (the " Books and Records"); and

            1.1.9. Other Assets and Properties. All of the other assets and
properties of the Sellers located at the Facility and used or useful in the
conduct of the Business, excluding the Excluded Assets (the "Other Assets").

      1.2. Excluded Assets. Notwithstanding anything in Section 1.1 to the
contrary, Seller shall not sell, transfer, assign or deliver to Buyer, and Buyer
shall not purchase, the following assets (collectively, the "Excluded Assets"):

            1.2.1. Cash and Funds. Any of Seller's cash, petty cash, cash on
deposit in banks or cash equivalents (classified as such in a manner consistent
with past practice in connection with compilations on the Seller's financial
statements), as of the Closing Date.

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            1.2.2. Prepaid Expenses. Any expenses of the Business which are
unaccrued or not yet due, but which have been paid by Seller prior to the
Closing.

            1.2.3. Accounting Software. The accounting software licensed and
used by the Business (the "Accounting Software").

2. CONSIDERATION

      2.1. Purchase Price; Delivery. The purchase price for the Purchased Assets
shall equal the Net Book Value (as defined below) of the Business, minus $35,000
(the "Purchase Price"). At Closing, the Buyer Group shall pay for the Purchased
Assets by assumption of the Assumed Liabilities and shall relinquish in favor of
Seller any and all right title and interest to 293,334 Dissenter's Shares (as
defined below), together with a duly executed stock power endorsed in blank. The
number of Dissenter's Shares as to which the Buyer Group shall relinquish its
rights shall be adjusted in accordance with Section 2.2. As used in this
Agreement, the "Dissenter's Shares" shall mean shares of Class A Common Stock of
Seller (which prior to the January 21, 2000 special meeting of Seller's
stockholders were shares of Class B Common Stock), together with any and all
rights accorded to such shares by Article 13 of the Georgia Business Corporation
Code, including but not limited to, any and all rights to receive fair value for
such shares and interest thereon, and which among other things, are the subject
of the Lawsuit.

      2.2 Share Adjustment. As soon as practicable after the Closing Date, but
in no event later than the 15th calendar day after the Closing Date, Seller
shall prepare, in a manner and on an accounting basis consistent with past
practice of the Seller as set forth in the financial statement of the Business
attached to Schedule 2.2, and deliver to Buyer a set of financial statements of
the Business dated as of October 31, 2000 (the "Adjustment Date") and a
statement (the "Closing Statement") showing the calculation of the Adjustment
Amount as of the Adjustment Date. The "Adjustment Amount" shall equal (i) the
net book value of the Business as of the Adjustment Date calculated in the
manner set forth in the financial statement of the Business attached to Schedule
2.2 (the "Net Book Value"), minus (ii) $35,000. If Seller does not receive
notice from Buyer disputing the Adjustment Amount within thirty (30) calendar
days after Buyer's receipt of the Closing Statement, then the Closing Statement
shall become final and binding on the Parties. If the Adjustment Amount is less
than $880,000, Seller shall release to the Buyer, subject to the Lawsuit,
Dissenter's Shares equal in value (based on a value of $3.00 per share) to the
difference between $880,000 and the Adjustment Amount. If the Adjustment Amount
is greater than $880,000, the Buyer shall promptly relinquish in favor of Seller
additional Dissenter's Shares equal in value (based on a value of $3.00 per
share) to the difference between the Adjustment Amount and $880,000.

      2.3 Disputes Regarding Adjustment Amount. If Buyer disagrees with the
Closing Statement used to calculate the Adjustment Amount, Buyer shall notify
Seller of such disagreement in writing specifying in detail the particulars of
such disagreement within thirty (30) calendar days after Buyer's receipt of the
Closing Statement. Buyer and Seller shall use reasonable efforts for a period of
fifteen (15) calendar days after Buyer's delivery of such notice (or such longer
period as Buyer and Seller may mutually agree upon) to resolve any disagreements
raised by Buyer with respect to the Closing Statement. If, at the end of such

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period, Buyer and Seller do not resolve such disagreements, Buyer and Seller
shall jointly select an independent accounting firm of recognized national
standing to review the Closing Statement and resolve any remaining disagreements
regarding the Adjustment Amount. In the event Buyer and Seller cannot agree upon
an accounting firm, they shall choose the same by lot from those "Big 5"
accounting firms having no material relationship to Buyer or Seller and their
respective Affiliates and having offices in locations suitable to conduct such
review. The determination by such independent accounting firm shall be final,
binding and conclusive on the Parties and judgment may be entered thereon in a
court of competent jurisdiction. Buyer and Seller shall use reasonable efforts
to cause such independent accounting firm to make its determination within
thirty (30) calendar days after accepting its selection. The fees and expenses
of such independent accounting firm shall be borne by the non-prevailing Party.

      2.4 Allocation of Purchase Price. Within sixty (60) days after the Closing
Date, Buyer and Seller shall use their reasonable best efforts to reach an
agreement regarding how the Purchase Price and the aggregate dollar amount of
the Assumed Liabilities shall be allocated among the Purchased Assets for tax
purposes. Upon having reached such an agreement, Buyer and Seller shall file all
tax returns and statements, forms and schedules in connection therewith
consistent with such allocation and shall take no position contrary thereto
unless required by law.

3. ASSUMPTION OF LIABILITIES BY BUYER

      3.1. Assumed Liabilities. At the Closing, the Buyer shall assume and agree
to perform and discharge, when and as due, all debts, obligations or liabilities
of Seller related to the Business, whether accrued, absolute, contingent,
unliquidated, or otherwise, whether known or unknown to Seller (the "Assumed
Liabilities"). Buyer, jointly and severally, agrees to indemnify, defend and
hold harmless Seller (and its directors, officers, employees, successors and
assigns) from and against all claims, liabilities, damages, deficiencies,
judgments, settlements, costs of investigation or other expenses (including
interest, penalties and reasonable attorney's fees and disbursements) based
upon, arising out of or otherwise in respect of the Assumed Liabilities.

      3.2. Excluded Liabilities. Except for the Assumed Liabilities, the Buyer
Group shall not assume or in any way become liable for, any debts, obligations
or liabilities of Seller or any of its affiliates (other than the Business), of
any kind or nature, including without limitation, bank overdrafts, checks in
process, intercompany payables or liabilities and any and all indebtedness
payable to any banks or financial institutions, whether accrued, absolute,
contingent or otherwise, or whether due or to become due, or otherwise, arising
out of events, transactions or facts which have occurred on or prior to the
Closing Date (collectively, the "Excluded Liabilities"). Seller agrees to pay,
perform and discharge when due the Excluded Liabilities and to indemnify, defend
and hold harmless Buyer Group (and its directors, officers, employees,
successors and assigns) from and against all claims, liabilities, damages,
deficiencies, judgments, settlements, costs of investigation or other expenses
(including interest, penalties and reasonable attorney's fees and disbursements)
based upon, arising out of or otherwise in respect of Seller's failure to so
pay, perform and discharge the Excluded Liabilities.

4. CLOSING. The Closing of the transactions contemplated by this Agreement (the
"Closing") shall be consummated at the offices of Gardner, Carton & Douglas, 321
North Clark

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Street, Chicago, Illinois 60610-4795 at 10:00 a.m. on October 31, 2000, unless
Buyer and Seller shall otherwise mutually agree. The day of the Closing is
sometimes referred to herein as the "Closing Date". The Closing shall be deemed
effective as of the close of business on the Closing Date.

5. REPRESENTATIONS AND WARRANTIES OF SELLER. Seller represents and warrants to
Buyer as follows:

      5.1. Organization. Seller is a corporation duly organized, validly
existing and in good standing under the laws of the State of Georgia, and Seller
possesses all requisite corporate power and authority to carry on the Business
as presently conducted, and to own and operate the Business and the Purchased
Assets.

      5.2. Qualification to Do Business. Seller is qualified to do business and
is in good standing in every jurisdiction in which the nature of the Business,
or the assets and properties owned or operated by it, makes such qualification
necessary.

      5.3. Authorization; No Breach. The execution, delivery and performance of
this Agreement and all of the transactions contemplated herein have been duly
authorized by all necessary corporate action on the part of Seller. This
Agreement and the other documents and instruments to be delivered by Seller
pursuant hereto constitute the valid and binding obligations of Seller,
enforceable against it in accordance with their respective terms, subject as to
enforcement to usual equitable principles and except as limited by bankruptcy,
moratorium, insolvency or similar laws of general application affecting the
enforcement of creditors' rights.

      5.4. Title to Properties. Except as set forth in Schedule 5.4, Seller has
good and marketable title to all of the Purchased Assets, free and clear of all
liens, claims, charges, set-offs, encumbrances or restrictions of every kind (a
"Lien"). The documents of transfer to be executed and delivered by Seller at
Closing will be sufficient to convey good and marketable title to the Purchased
Assets to Buyer.

      5.5. No Violations; Consents and Approvals. Except as set forth on
Schedule 5.5, the execution and delivery by Seller of this Agreement, the
Ancillary Documents to which each is a party and the fulfillment of and
compliance with the respective terms hereof and thereof by Seller do not and
will not, (a) conflict with or result in a breach of the terms, conditions or
provisions of, (b) constitute a default or event of default under (with due
notice, lapse of time or both), (c) result in the creation of any Lien upon the
Assets, (d) give any third party the right to accelerate any obligation under,
(e) result in a violation of, or (f) require any authorization, consent,
approval, exemption or other action by or notice to any Person (including,
without limitation, any creditor, customer or supplier) pursuant to any
applicable laws, statutes, rules, regulations, ordinances, orders, requirements,
announcements and other binding actions (collectively, "Regulations") or
Contract to which Seller is subject. Seller has complied with all applicable
Regulations in connection with the execution, delivery and performance of this
Agreement, and the other agreements, instruments, certificates and documents
executed in connection herewith (collectively, the "Ancillary Documents") to
which each is a party and the transactions contemplated hereby and thereby.
Seller is not required to submit any notice, report, or other filing with any
governmental authority in connection with its execution or delivery of

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this Agreement, the Ancillary Documents to which it is a party or the
consummation of the transactions contemplated hereby and thereby. Except as set
forth on Schedule 5.5 hereof, no authorization, consent, approval, exemption or
notice is required to be obtained by Seller in connection with the execution,
delivery, and performance of this Agreement, the Ancillary Documents to which it
is a party and the transactions contemplated hereby and thereby.

      5.6. Taxes. Seller has filed all federal and state reports, returns,
information returns and other documents (collectively, the "Tax Returns")
required to be filed with any federal or state taxing authorities (each a
"Taxing Authority", collectively, the "Taxing Authorities") in respect of all
relevant income taxes (including interest and penalties) applicable to its
business (collectively, the "Taxes") and in accordance with all tax sharing
agreements to which Seller may be a party. All Taxes required or anticipated to
be paid for all periods prior to and including the Closing Date have been paid
or are adequately provided for in Seller's financial statements, including any
Taxes that may be due or claimed to be due as a result of the consummation of
the transactions contemplated by this Agreement. All Taxes which are required to
be withheld or collected by Seller have been duly withheld or collected and, to
the extent required, have been paid to the proper Taxing Authority or properly
segregated or deposited as required by applicable laws. There are no Liens for
Taxes upon any property or assets of Seller except for Liens for Taxes not yet
due and payable.

      5.7. Litigation. Except as set forth on Schedule 5.7, there is no Claim
pending or, to the Knowledge of Seller, threatened against, relating to or
affecting Seller, the Business, or any of the Assets nor is there any order
outstanding against Seller, the Business or any of the Assets.

      5.8. Undisclosed Liabilities. To the Knowledge of Seller, there is no
liability, whether accrued, absolute or contingent, of a type required to be
reflected on the balance sheet of the Business or described in the notes thereto
consistent with past practice of the Seller that will not be in the Closing
Statement.

      5.9. Disclaimer of Warranties. THE PURCHASED ASSETS ARE BEING ACQUIRED BY
BUYER "AS IS," "WHERE IS," AND WITH ALL FAULTS AND (A) SELLER MAKES NO
REPRESENTATIONS OR WARRANTIES OF ANY KIND, WHETHER EXPRESS OR IMPLIED, WITH
RESPECT TO ALL OR ANY OF THE ASSETS, INCLUDING, WITHOUT LIMITATION, ANY IMPLIED
WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR ANY
REPRESENTATION WITH RESPECT TO THE DESIGN, QUALITY, DURABILITY, OR SUITABILITY
OF THE PURCHASED ASSETS FOR A PARTICULAR PURPOSE, AND (B) SELLER MAKES NO
REPRESENTATIONS OR WARRANTIES OF ANY KIND, WHETHER EXPRESS OR IMPLIED, IN
CONNECTION WITH THE VALUE, CONDITION, FITNESS, OR USE OF THE ASSETS OR THE
PRESENCE, ABSENCE OR CONDITION OF ANY ENVIRONMENTAL CONTAMINANT OR THE PRESENCE
OR EXISTENCE OF ANY ENVIRONMENTAL CONDITION.

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6. REPRESENTATIONS AND WARRANTIES OF THE BUYER GROUP. The Buyer Group represents
and warrants to Seller as follows:

      6.1. Organization. Buyer is a limited liability company duly organized,
validly existing and in good standing under the laws of the State of Georgia.

      6.2. Authorization. The execution, delivery and performance of this
Agreement and all of the transactions contemplated herein have been duly
authorized by all necessary corporate action on the part of the Buyer Group.
This Agreement and the other documents and instruments to be delivered by the
Buyer Group pursuant hereto constitute the valid and binding obligations of the
Buyer Group, enforceable against the Buyer Group in accordance with their
respective terms subject as to enforcement to usual equitable principles and
except as limited by bankruptcy, moratorium, insolvency or similar laws of
general application affecting the enforcement of creditors' rights. The Buyer
Group is not subject to any restriction or other provision contained in its
Articles of Organization or operating agreement, or any agreement, instrument,
order, judgment, decree or other restriction that would prevent the consummation
of the transactions contemplated by this Agreement, or that would result in the
creation of any lien, mortgage, security interest, charge or other encumbrance
upon its assets.

      No notice to, filing with, or authorization, consent or approval of any
public body or authority or other person or entity is required of Buyer Group in
connection with the execution, delivery and performance by Buyer Group of this
Agreement or the other documents and instruments to be delivered by Buyer Group
pursuant hereto or the consummation by Seller of the transactions contemplated
herein or therein.

      6.3. No Consent or Approval Required. No permit, consent, approval or
authorization of, or declaration to or filing with, any governmental or
regulatory authority or other person or entity is required of the Buyer Group in
connection with the execution, delivery and performance by the Buyer Group of
this Agreement or the other documents and instruments to be delivered by the
Buyer Group pursuant to this Agreement or the consummation by the Buyer Group of
any other transaction contemplated hereby.

      6.4 Dissenter's Shares. The Dissenter's Shares delivered at Closing are
shares as to which dissenters' rights have been asserted and which are the
subject of the Lawsuit.

      6.5 Stock. Anita represents and warrants to the Seller that, subject to
the tender of the Dissenter's Shares to perfect dissenter's rights, Anita has
good and marketable title to the Dissenter's Shares; free and clear of all
liens, encumbrances, claims, options, rights of first refusal, warrants,
conversion rights and other agreements (collectively, the "Liens"). Upon the
Closing of this Agreement, the Seller shall acquire good and marketable title to
the Dissenter's Shares delivered by Anita to Seller in connection with this
Agreement (as adjusted pursuant to Section 2.2 hereof), free and clear of all
Liens.

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7. ADDITIONAL AGREEMENTS OF THE PARTIES. Buyer and Seller agree as follows:

      7.1. Litigation Moratorium. The Parties agree to suspend and not pursue
any and all pending litigation or legal proceedings with respect to the Lawsuit,
until January 1, 2001. The Parties further agree to use their best efforts as
provided in Section 7.4 to take any action necessary to obtain Court approval of
a pretrial litigation schedule in the Lawsuit that is consistent with this
moratorium and preserves the Parties' rights to pursue the Lawsuit thereafter,
including but not limited to adequate time in which to complete discovery. At
Closing Anita agrees to deliver signed, written agreements of its co-defendants
to the Lawsuit to all of the foregoing moratorium provisions.

      7.2. Uncontested Stock. Anita agrees to waive any dissenter's rights that
Anita may have with regard to the Dissenter's Shares delivered by Anita to
Seller in connection with this Agreement (as adjusted pursuant to Section 2.2
hereof) and shall deliver a Release as provided in Section 9.3.4. with respect
to such shares. Anita shall retain all rights including, without limitation, its
dissenters rights under applicable state corporate law, with respect to any and
all of the Dissenters Shares that are not delivered pursuant to this Agreement
or that are delivered and released by Seller pursuant to Section 2.2.

      7.3. Value of Dissenter's Shares. The Parties agree that the value
attributed to the Dissenter's Shares for purposes of this Agreement may not be
used in any manner in any pending or future litigation between the parties,
including without limitation, the Lawsuit, as evidence or argument in support of
the value of Seller's Class A Common Stock or Class B Common Stock previously
tendered to the Seller by the defendants in the Lawsuit in the exercise of their
dissenter's rights. At Closing, Anita agrees to deliver signed, written
agreements of its co-defendants to the Lawsuit to the foregoing provision.

      7.4. Best Efforts; Further Assurances. Subject to the terms and conditions
herein provided, the Buyer Group and Seller agree to use reasonable commercial
efforts to take, or cause to be taken, all action, and to do, or cause to be
done, all things necessary, proper or advisable under applicable laws and
regulations to consummate and make effective the transactions contemplated by
this Agreement. The Buyer Group and Seller will each use their respective
reasonable commercial efforts to obtain consents of all third parties and
governmental bodies necessary for the consummation of the transactions
contemplated by this Agreement. In case at any time after Closing any further
actions, documents or instruments are necessary to carry out the purposes of
this Agreement, the Buyer Group and Seller shall take all such actions and
prepare and execute all such documents or instruments without any further
consideration therefor.

      7.5. Seller's Access to Records After Closing. For a period of three years
after the filing of Seller's 2000 income tax return and thereafter upon Seller's
written request and Buyer's approval, the Buyer shall give, or cause to be
given, to Seller, its successors and representatives, during normal business
hours and at Seller's or their successor's expense, such reasonable access to
the assets, properties, contracts, books, records, files, documents and affairs
of the Buyer as is reasonably necessary to allow Seller or Seller's successors
to obtain information in the Buyer's possession with respect to the Business up
to and including the Closing Date, and to allow Seller to

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obtain information with respect to any claims, demands, audits, suits or matters
of a similar nature made by or against Seller as the previous owner and operator
of the Business, and (at Seller's or its successor's expense) to make copies of
such information to the extent reasonably necessary.

      7.6. Certain Employee Matters.

            7.6.1. Offer of Employment. Effective immediately after the Closing,
Buyer shall offer employment to each person employed on the Closing Date
(including without limitation, employees who are on approved leaves of absence,
including, but not limited to, short-term and long-term disability leave, or who
are on a leave related to a workers' compensation claim, all of whom will be
offered employment upon their return from said leave of absence) in connection
with the operations of the Business (an "Employee"). Such offers of employment
shall be at compensation and benefit levels substantially equivalent in the
aggregate to compensation and benefit levels enjoyed by Employees of the
Business immediately prior to the Closing.

            7.6.2 Plans. If permitted pursuant to the terms of Buyer's Welfare
Plans (as hereinafter defined), if any, Buyer's welfare and fringe benefit
plans, programs, policies or arrangements ("Buyer's Welfare Plans") made
available to Employees shall treat service by Employees with Seller in the same
manner as service with Buyer for purposes of eligibility to participate in such
plans, programs, policies or arrangements, and Buyer shall use commercially
reasonable efforts to cause any limitations thereunder on coverage of
pre-existing conditions to be waived with respect to Employees and their
eligible dependents and beneficiaries. For purposes of the current plan year, if
permitted under the terms of Buyer's Welfare Plans, the Buyer shall take into
account deductible and co-payment amounts incurred under Business welfare
benefit plans when determining deductibles and co-payments under Buyer's welfare
plans with respect to Employees.

      7.7. Insurance. Coverage of the Business under all insurance policies of
the Seller shall cease as of the Closing Date. From and after the Closing Date,
Buyer will be responsible for obtaining and maintaining all insurance coverages
with respect to the Business. Neither Buyer nor the Business will have any
rights with respect to any insurance policies of Seller, except that Buyer and
the Business will have the right to assert claims (and Seller, at Buyer's sole
cost and expense, will use reasonable efforts to assist Buyer and the Business
in asserting claims) for any loss, liability or damage with respect to the
assets of the Business under such insurance policies of Seller which are
"occurrence basis" policies ("Occurance Basis Policies") arising out of insured
incidents occurring from the date of coverage thereunder first commenced until
the Closing Date to the extent such Occurance Basis Policies and agreements
relating thereto so allow.

      7.8. Consents. Seller shall cooperate with Buyer and use commercially
reasonable efforts to obtain the consent of the other parties to the contracts
listed on Schedule 5.5.

      7.9. License of Name. Buyer shall take such actions and file such
documents as may be necessary to change the name of the business from "Tekgraf
Systems" to a name dissimilar to "Tekgraf Systems" or "Tekgraf." Buyer shall
also change the trademarks and trade names

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associated with any products or services available from the Business or Buyer to
discontinue the use of the name "Tekgraf" and any confusingly similar trademarks
and trade names and otherwise discontinue the use of such trademarks and trade
names in connection with Seller's business operations. Notwithstanding the
foregoing, effective upon the Closing, from the Closing Date to January 31,
2001, Buyer shall have a temporary, nonexclusive, nontransferable license to use
the name "Tekgraf Systems", as the name of the Business.

      7.10. Certain Business Matters. As a condition to and an inducement for
the Seller to enter into this Agreement, Buyer and Seller each agree to assume
and fulfill on a timely basis all obligations under the following purchase
orders Seller has submitted to the Business for the purchase of computers
(excluding those computers shipped on the purchase orders through the Closing
Date): P.O. 16724 for 70 computers; P.O. 16578 for 135 computers; P.O. 16461 for
35 computers; and P.O. 16388 originally for 150 computers.

8. CONDUCT OF BUSINESS PENDING THE CLOSING. Unless the prior written consent of
Buyer is obtained, between the date hereof and the Closing Date:

      8.1. Ordinary Course. The Business shall be conducted in the ordinary
course of business, consistent with prior practices. Seller shall use reasonable
commercial efforts to preserve the Business intact and to preserve the
relationship and goodwill of its suppliers, customers and others having business
relations with it.

      8.2. Certain Transactions. Without limiting the generality of Section 8.1
hereof, Seller shall not: (a) sell, lease, mortgage, pledge or otherwise
encumber or dispose of any of the Purchased Assets, except for sales in the
ordinary course of business; or (b) sell, transfer, license or otherwise dispose
of or encumber any proprietary rights or fail to take all necessary action to
protect the proprietary rights of the Business so as to maintain their validity
and enforceability.

9. CONDITIONS TO CLOSING.

      9.1. Mutual Conditions. The respective obligations of each party to
consummate the transactions contemplated by this Agreement shall be subject to
the fulfillment at or prior to Closing of each of the following conditions:

            9.1.1. No Suit. No suit, action or other proceeding or investigation
shall be pending, or to the knowledge of any party hereto, be threatened before
or by any governmental agency or by any third party questioning the legality of
this Agreement or the consummation of the transactions contemplated hereby.

      9.2. The Buyer Group's Conditions. The obligations of the Buyer Group to
consummate the transactions contemplated by this Agreement shall be subject to
the fulfillment at or prior to Closing of each of the following conditions:

            9.2.1. Representations and Warranties. All representations and
warranties made by Seller in or pursuant to this Agreement shall be true and
correct on the date hereof and as of the Closing Date as though such
representations and warranties were made as of the Closing Date.

                                      -10-
<PAGE>

            9.2.2. Performance. Seller shall have duly performed and complied
with all of the obligations to be performed or complied with by it under the
terms of this Agreement on or prior to Closing.

            9.2.3. Closing Documents. Seller shall have delivered to Buyer a
Bill of Sale and Assumption Agreement, a Noncompetition, Nonsolicitation and
Nondisclosure Agreement, and an Indemnification Agreement, each executed by
Seller, and such other closing documents as the Buyer Group may reasonably
request, in form and substance reasonably acceptable to Buyer's counsel.

            9.2.4. Waiver. Buyer shall have the right to waive any or all of the
conditions precedent to its obligations hereunder; provided, however, that no
waiver by Buyer of any condition precedent to its obligations hereunder shall
constitute a waiver by Buyer of any other condition precedent to its obligations
hereunder.

      9.3. Seller's Conditions. The obligations of Seller to consummate the
transactions contemplated by this Agreement shall be subject to the fulfillment
at or prior to the Closing of each of the following conditions:

            9.3.1. Representations and Warranties. The representations and
warranties of Buyer contained in this Agreement shall be true and correct on the
date hereof and as of the Closing Date as though such representations and
warranties were made as of the Closing Date.

            9.3.2. Performance. The Buyer Group shall have duly performed and
complied with all of the obligations to be performed or complied with by it
under the terms of this Agreement on or prior to Closing.

            9.3.3. Approvals. All material authorizations or approvals or other
action required in connection with the execution, delivery and performance of
this Agreement by the Buyer Group, and the consummation by the Buyer Group of
the transactions contemplated hereby, shall have been obtained.

            9.3.4. Release. The Buyer Group shall have delivered a release with
respect to the Dissenter's Shares delivered pursuant to Section 2 in the form of
Schedule 9.3.4. hereto.

            9.3.5. Closing Documents. The Buyer Group shall have delivered to
Seller a duly executed Bill of Sale and Assumption Agreement, and such other
closing documents as Seller may reasonably request, in a form reasonably
acceptable to counsel for Seller.

            9.3.6. Waiver. Seller shall have the right to waive any or all of
the conditions precedent to its obligations hereunder; provided, however, that
no waiver by Seller of any condition precedent to its obligations hereunder
shall constitute a waiver by Seller of any other condition precedent to its
obligations hereunder.

                                      -11-
<PAGE>

10. TERMINATION.

      10.1. Termination of Agreement. This Agreement and the transactions
contemplated hereby may be terminated at any time prior to Closing, as follows:

            10.1.1. Mutual Consent. By the mutual written consent of the Buyer
Group and Seller.

            10.1.2. Breach by Seller. In the event that the conditions precedent
to the obligations of the Buyer Group hereunder are not satisfied or waived as
of the Closing Date or if Seller materially breaches its covenants or agreements
contained in this Agreement, the Buyer Group shall then have the right to
terminate this Agreement upon notice given to Seller at any time on or prior to
the Closing. Upon the occurrence of a material breach, the Buyer Group shall
retain the right to pursue any and all legal rights against Seller which it may
then have or thereafter obtain.

            10.1.3. Breach by Buyer. In the event that the conditions precedent
to the obligations of the Seller hereunder are not satisfied or waived as of the
Closing Date or if any member of the Buyer Group materially breaches its
covenants or agreements contained in this Agreement, Seller shall have the right
to terminate this Agreement upon notice given to the Buyer Group at any time
prior to the Closing, (except with respect to the Buyer Group's obligations
under the last sentence of Section 10.2 hereof, which shall survive such
termination).

            10.1.4. Litigation. By Buyer or Seller if any litigation or
proceeding instituted by any person has resulted in an order, stay, judgment or
decree restraining or prohibiting the consummation of the transactions
contemplated by this Agreement, or the ownership and operation by Buyer after
Closing of all the Purchased Assets or the Business, and such order or stay has
not been vacated, or such judgment or decree has not been vacated or reversed,
within ten days after the entry thereof.

            10.1.5. Cut-Off Date. By the Buyer Group or Seller if the Closing
shall not have occurred on or before November 1, 2000.

      10.2. Effect of Termination. If this Agreement is terminated pursuant to
Section 10.1 hereof (except by reason of subsection 10.1.2 or 10.1.3 hereof),
all rights and obligations of Seller and the Buyer Group hereunder shall
terminate and neither party shall have any liability to the other, except as
provided in the succeeding sentence. If the transaction contemplated hereunder
shall fail to be consummated for any reason, the Buyer Group agrees, (i) for a
period ending December 31, 2001, that it will not hire, offer to hire, or
otherwise solicit interest in hiring on the part of, any employee of Seller, and
(ii) that it will keep the contents of any documents, books or records of Seller
that are not in the public domain, strictly confidential.

11. SURVIVAL. Except as otherwise expressly set forth herein, all of the terms
and conditions of this Agreement, together with the representations, warranties
and covenants contained herein or in any instrument or document delivered or to
be delivered pursuant to this Agreement, shall survive the execution of this
Agreement and the Closing notwithstanding any investigation heretofore or
hereafter made by or on behalf of any party hereto; provided, however, that: (i)
the agreements and covenants set forth in this Agreement shall survive and

                                      -12-
<PAGE>

continue until all obligations set forth therein shall have been performed and
satisfied; and (ii) all representations and warranties shall survive and
continue until one (1) year from the Closing Date, except for representations
and warranties for which any claim for indemnification which shall be pending as
of such date of termination, in which event such representations and warranties
shall survive until the final disposition thereof.

12. MISCELLANEOUS.

      12.1. Notices. All notices, requests, demands and other communications
required or permitted to be given hereunder shall be in writing and shall be
deemed to have been duly given when delivered by hand, when mailed by certified
or registered mail, when received by facsimile transmission, or when deposited
with a nationally-recognized carrier for overnight delivery.

      12.2. Expenses. Regardless of whether the transactions provided for in
this Agreement are consummated, each party hereto shall pay its own expenses
incident to the preparation of this Agreement and the consummation of the
transactions contemplated hereby.

      12.3. Governing Law. This Agreement shall be governed by and construed in
accordance with the internal laws of the State of Illinois, without giving
effect to any choice or conflict of law provisions or rules (whether of the
State of Illinois or otherwise) that would cause the application of the laws of
any jurisdiction other than the State of Illinois.

      12.4. Successors and Assigns. This Agreement shall be binding upon and
inure to the benefit of the parties hereto, and their successors and assigns,
however, neither party may assign its rights, interests or obligations hereunder
without the prior written consent of the other party.

      12.5. Waiver. The waiver by either party of a breach by the other party of
any provision of this Agreement shall not operate or be construed as a waiver of
any subsequent breach by the waiving party.

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

      12.7. Titles and Headings. The titles and headings to sections contained
herein are for purposes of reference only, and shall not affect the provisions
hereof.

      12.8. Entire Agreement. This Agreement and the Schedules attached hereto
constitute the entire agreement among the parties with respect to the matters
covered thereby and supersede all previous written, oral or implied
understanding among them with respect to such matters.

      12.9. Amendment and Modification. The terms of this Agreement may be
amended, modified, waived or supplemented only by mutual consent set forth in a
writing duly signed by the parties hereto.

      12.10. Severability. In case any of the provisions contained in this
Agreement are found to be invalid, illegal or unenforceable in any respect, any
invalidity, illegality or unenforceability shall not affect any other provision
of this Agreement, but this Agreement shall be construed as if

                                      -13-
<PAGE>

such invalid, illegal or unenforceable provision had been limited or modified
(consistent with its general intent) to the extent necessary so that it shall be
valid, legal and enforceable, or if it shall not be possible to so limit or
modify such invalid or illegal or unenforceable provision or part of a
provision, this Agreement shall be construed as if such invalid or illegal or
unenforceable provision or part of a provision had never been contained herein.

      12.11. Public Announcement. No party shall publicly disclose this
Agreement or any dealings between the parties in connection with the subject
matter hereof without the prior written approval of the other, except as may be
required by law.

      12.12. Guarantee. Anita hereby absolutely and unconditionally guarantees
the Buyer's performance of its obligations under this Agreement and the
transactions contemplated hereby, subject to the limitations set forth in
Section 4 of the Indemnity Agreement.

      12.13. No Third Party Beneficiaries. This Agreement shall not confer any
rights or remedies upon any other individual or entity other than the parties
and their respective successors and permitted assigns.

      12.14. Knowledge of Seller. References in this Agreement to the "Knowledge
of Seller" or "Seller's Knowledge" shall be deemed to mean the actual knowledge
of Bill Rychel or Tom Mason.

                                      -14-
<PAGE>

      IN WITNESS WHEREOF the parties have executed this Agreement as of the date
set forth above.

TEKGRAF, INC.                           MICRO ENVIRONMENTS, L.L.C.

By: /s/ Thomas M. Mason                 By:  /s/ Phillip Aginsky
Its: CFO                                Its: Manager

                                        ANITA LTD.

                                        By:  /s/ Phillip Aginsky
                                        Its: Attorney-in-fact

                                      -15-
<PAGE>

                       Schedule 1.1.4.--Proprietary Rights

1.    The domain name www.tekgrafsystems.com, subject to use of the name
      "Tekgraf" as set forth in this Agreement.

2.    The domain name www.crescom.com

3.    The trade name "Crescent Computers"

4.    The trade name "Crescent Computer Services"

5.    The telephone number 800-852-6294

6.    The telephone number 770-441-1107

<PAGE>

                       Schedule 1.1.5.--Business Contracts

1.    MCI Wordlcom--local, long distance, and internet

2.    Georgia Security Systems--Security System Monitoring

<PAGE>

                             Schedule 1.1.6.--Leases

1.    Pro Logic--building lease

2.    Pitney Bowes--copier and postage meter lease

<PAGE>

                            Schedule 1.1.7.--Licenses

1.    Gwinnett County Business License

<PAGE>

               Schedule 2.2.--Financial Statement of the Business

<PAGE>

Tekgraf Systems
September 2000 Results

<TABLE>
<CAPTION>
  ACCT            DESCRIPTION                  9/30/00            EXCLUDED       9/30/00
                                             AS REPORTED         ASSETS/LIAB     ADJUSTED
                                             -----------         -----------     --------
                     ASSETS

<S>        <C>                              <C>                <C>             <C>
  1110     CASH CHECKING                     (121,320.16)       121,320.16(1)            --
  1150     PETTY CASH                              50.00                              50.00
  1210     TRADE RECEIVABLES                  731,008.39         (3,277.00)(2)   727,731.39
  1220     ALLOWANCE                          (46,255.88)                        (46,255.88)
  1310     STOCK INVENTORY                    444,321.70                         444,321.70
  1350     VENDOR INVENTORY                    40,966.95                          40,966.95
  1360     CLEARANCE INVENTORY                 22,304.51                          22,304.51
  1375     RTV CLEARING                         5,566.32                           5,566.32
  1384     MISC INVENTORY                      11,745.55                          11,745.55
  1420     OTHER RECEIVABLES                    3,994.71                           3,994.71
  1465     PREPAID EXPENSE                      8,480.00                           8,480.00
  1470     DEPOSITS                             4,536.00                           4,536.00
  1620     FIXED ASSETS                        81,522.03                          81,522.03
  1640     FIXED ASSETS                        37,944.00                          37,944.00
  1700     ACCUMULATED DEPR                   (91,940.00)                        (91,940.00)
1920/30    RECEIVABLE-TEKGRAF                 188,278.09       (142,497.89)       45,780.20(3)
                       TOTAL ASSETS         1,321,202.21        (24,454.73)    1,296,747.48

                       LIABILITIES
  1925     CORPORATE ALLOC                   (199,377.00)       199,377.00(4)            --
  2100     TRADE PAYABLE                     (459,097.56)                       (459,097.56)
  2105     INVENTORY ACCRUAL                   (6,732.81)                         (6,732.81)
  2200     ACCRUED EXPENSES                   (15,224.78)                        (15,224.78)
  2205     COMM ACCRUAL                       (16,542.30)                        (16,542.30)
  2220     SALES TAX PAYABLE                     (774.71)                           (774.71)
                     TOTAL LIABILITIES       (697,749.16)       199,377.00      (498,372.16)

                                            ------------        ----------     ------------
                   TOTAL NET BOOK VALUE       623,453.05        174,922.27       798,375.32
                                            ============        ==========     ============

                          EQUITY
  3010     COMMON STOCK                          (100.00)
  3100     ADD PAID IN CAPITAL               (869,900.00)
  3200     CURRENT EARNINGS                   137,813.07
  3210     RETAINED EARNINGS                  108,733.88
                       TOTAL EQUITY          (623,453.05)
</TABLE>

NOTES:
      1.)   Represents outstanding checks and deposits in transit.
      2.)   Represents intercompany A/R with Tekgraf. See notes #3.
      3.)   Represents prior two months of invoices to Tekgraf. See attached
            schedule.
      4.)   Represents Corporate management fee accrual.

<PAGE>

                       Schedule 5.4.--Title to Properties

      1. There is a Lien on the Purchased Assets in favor of Wachovia Bank,
which will be realesed at Closing.

      2. With respect to the proprietary rights, Seller makes no representation
or warranty of any kind, without limitation, no representation regarding title,
or ownership or infringement.

<PAGE>

              Schedule 5.5.--No Violations; Consents and Approvals

      1. The Seller has not obtained the consent of the other parties to the
contracts, leases and licenses set forth on Schedules 1.1.5., 1.1.6. and 1.1.7.
to assign these contracts, leases and licenses to Buyer.

<PAGE>

                            Schedule 5.7.--Litigation

1.    The lawsuit captioned Tekgraf, Inc., a Georgia corporation, Plaintiff, v.
      Anita Ltd., Dan I. Bailey, Peter Goletz, Michelle L. Lightman, and John W.
      Parrillo, Defendants, pending in the Superior Court of Fulton County,
      Georgia, as Case No. 2000 CV 23746.

2.    The lawsuit captioned Epicor Software Corporation, a Delaware corporation,
      Plaintiff, vs. Tekgraf, Inc., a corporation; and Does 1 to 25, Defendants,
      pending in the Supreme Court of Orange County, California, as Case No. 00
      CC 12236.

3.    The shareholders derivative claim threatened by Anita, Ltd.

<PAGE>

                                 Schedule 9.3.4

                                     RELEASE

      The Buyer Group and Philip Aginsky, on behalf of themselves, and each of
their present and former agents, employees, officers, directors, shareholders,
partners, attorneys, heirs, legal representatives, corporate affiliates,
including parent and subsidiary corporations, successors and assigns, hereby
forever release and discharge Seller, and each of its present and former agents,
employees, officers, directors, shareholders, partners, attorneys, heirs, legal
representatives, corporate affiliates, including parent and subsidiary
corporations, successors and assigns, of and from any and all actions, causes of
action, claims, debts, liabilities, damages, costs, loss of services, expenses,
compensation, demands and/or suits whatsoever, whether known or unknown, in law
or in equity, arising from or connected in any manner to the Dissenter's Shares
that the Buyer Group has agreed to deliver to Seller (regardless of whether such
Dissenter's Shares are to be delivered at Closing or thereafter pursuant to
Section 2.2 of the Agreement (as defined below)), including but not limited to,
all rights and claims provided by Article 13 of the Georgia Business Corporation
Code, all rights and claims that have been or could have been asserted pursuant
to Article 13 of the Georgia Business Corporation Code, and all rights and
claims that were raised or could have been raised in the Lawsuit;

      PROVIDED, HOWEVER, that, if Seller releases Dissenter's Shares to the
Buyer Group pursuant to Section 2.2 of the Agreement, this RELEASE shall not
apply to such released Dissenter's Shares; and

      PROVIDED FURTHER, HOWEVER, that this RELEASE shall not apply to and shall
not affect Dissenter's Shares that the Buyer Group is not obligated to deliver
to the Seller under the Agreement.

      IN ADDITION, Philip Aginsky represents and warrants that he has no
ownership interest in the Dissenter's Shares and releases the Seller from any
and all claims relating to the transactions contemplated by the Agreement. The
foregoing RELEASE shall not affect the Buyer Group's rights under the Agreement.

      Unless otherwise defined herein, all capitalized terms used herein shall
have the meanings ascribed to such terms in the Asset Purchase Agreement (the
"Agreement") dated as of November 1, 2000 by and among Tekgraf, Inc., a Georgia
corporation, Micro Environments, L.L.C., a Georgia limited liability company,
and Anita Ltd., a corporation organized under the laws of the Channel Islands.

      This RELEASE shall become effective upon completion of the Closing.

<PAGE>

MICRO ENVIRONMENTS, L.L.C.              ANITA LTD.

By:  /s/ Phillip Aginsky                By:  /s/ Phillip Aginsky

Its: Manager                            Its: Attorney-in-fact

/s/ Phillip Aginsky
-------------------------------

PHILIP AGINSKY

                                      -2-

<PAGE>

      Exhibit 10.1-2

                                BILL OF SALE AND
                              ASSUMPTION AGREEMENT

      Tekgraf, Inc., a Georgia corporation ("Seller"), for good and valuable
consideration paid to it by Micro Environments, L.L.C., a Georgia limited
liability company and Anita Ltd., a corporation organized under the laws of the
Channel Islands (collectively, the "Buyer Group") pursuant to an Asset Purchase
Agreement made and entered into effective as of close of business October 31,
2000 (the "Agreement"; the capitalized terms not otherwise defined herein shall
have the meaning assigned to such terms in the Agreement) by and between Seller
and the Buyer Group, by these presents does hereby sell, transfer, convey and
assign to the Buyer Group, and its successors and assigns, on the date hereof
all of Seller's right, title and interest in and to the Purchased Assets.

      At any time or from time to time after the date hereof, at Buyer's Group's
request and without further consideration, Seller shall execute and deliver to
the other Party such other instruments of sale, transfer, conveyance, assignment
and confirmation, provide such materials and information and take such other
actions as Buyer Group may reasonably deem necessary or desirable in order more
effectively to transfer, convey and assign to Buyer Group and to confirm Buyer
Group's title to, all of the Purchased Assets, and, to the full extent permitted
by Law, to put Buyer Group in actual possession and operating control of the
Purchased Assets and to assist Buyer Group in exercising all rights with respect
thereto.

      Seller hereby constitutes and appoints Buyer Group the true and lawful
attorney of Seller, with full power of substitution, in the name of Seller or
Buyer Group, but on behalf of and for the benefit of Buyer Group to make
endorsements on checks in order to collect, assert or enforce any claim, right
or title of any kind in or to the Purchased Assets.

      The Buyer Group, for itself, its successors and assigns, shall indemnify
and hold Seller harmless from, against, or in respect of all damage, loss,
claims, deficiency, liability, expenses (including, but not limited to, any
reasonable expert witness fees, reasonable attorneys' fees, court costs and
expenses), action, suit, proceeding, demand, assessment, or judgement to or
against Seller arising out of or in connection with any Assumed Liabilities to
the extent provided in the Agreement.

      This Bill of Sale is delivered pursuant to, on the terms of and subject to
the conditions set forth in the Agreement. This Bill of Sale may be executed in
any number of counterparts, each of which will be deemed an original, but all of
which together will constitute one and the same instrument.

<PAGE>

      IN WITNESS WHEREOF, the undersigned has executed this Bill of Sale as of
this 31st day of October, 2000.

TEKGRAF, INC.                           MICRO ENVIRONMENTS, L.L.C.

By:/s/ Thomas M. Mason                  By:/s/ Phillip Aginsky
Its: CFO, Tekgraf, Inc.                 Its: Attorney-in-fact

                                        ANITA LTD.

                                        By:  /s/ Phillip Aginsky
                                        Its: Attorney-in-fact

<PAGE>

Exhibit 10.1-3

                       NON-COMPETITION, NON-DISCLOSURE AND
                           NON-SOLICITATION AGREEMENT

      THIS NON-COMPETITION, NON-DISCLOSURE AND NON-SOLICITATION AGREEMENT (this
"Agreement") is made and entered into as of the 31st day of October, 2000 (the
"Effective Date"), by and among TEKGRAF, INC., a Georgia corporation ("Seller"),
MICRO ENVIRONMENTS, L.L.C., a Georgia limited liability company ("Buyer"), and
ANITA LTD., a corporation organized under the laws of the Channel Islands
("Anita"). Buyer and Anita are sometimes referred to herein as the "Buyer
Group".

                              W I T N E S S E T H:

      WHEREAS, Anita is a shareholder of Seller owning shares of the Class A
Common Stock (which were formerly shares of Class B Common Stock) of Seller and
holds a majority of the membership interests of Buyer, and has exercised its
dissenters rights with respect to its holdings of Seller's Class A Common Stock;

      WHEREAS, Anita is a party to that certain lawsuit captioned Tekgraf, Inc.,
a Georgia corporation, Plaintiff, v. Anita Ltd., Dan I. Bailey, Peter Goletz,
Michelle L. Lightman, and John W. Parrillo, Defendants, pending in the Superior
Court of Fulton County, Georgia, as Case No. 2000 CV 23746 (the "Lawsuit")
relating to the exercise of dissenters rights by Anita and others; and

      WHEREAS, Seller, through its "Tekgraf Systems" division, is engaged in the
business of the manufacture and sale of custom or "made to order" premium
servers and network workstations at its facility at Norcross, Georgia (the
"Business"); and

      WHEREAS, in partial settlement of the Lawsuit, Seller and the Buyer Group
have entered into an Asset Purchase Agreement, dated as of even date herewith,
pursuant to which Buyer is acquiring those assets of Seller and assuming certain
of the liabilities of Seller relating to the Business in exchange for the
delivery of a portion of the shares of Class A Common Stock (which were formerly
shares of Class B Common Stock), the fair value of which, among other things, is
the subject of the Lawsuit (the "Purchase Agreement"); and

      WHEREAS, Seller understands and acknowledges that the covenants of Seller
set forth herein are, collectively, a material inducement to the Buyer Group to
enter into the Purchase Agreement, without which the Buyer Group would not have
entered into the Purchase Agreement.

      NOW, THEREFORE, for and in consideration of the above premises, the mutual
agreements hereinafter set forth, and other good and valuable consideration, the
receipt, adequacy and sufficiency of which are hereby acknowledged, the parties
hereto covenant and agree as follows:

<PAGE>

      1. Definitions.

            (a) "Affiliate" shall mean, with regard to any Person, any Person,
directly or indirectly, controlled by, under common control of, or controlling
such Person.

            (b) "Customer" shall mean any Person, whether an individual or an
entity, to whom any products or services of the Restricted Businesses were
provided at any time during the twelve (12) month period immediately prior to
the Effective Date.

            (c) "Person" shall mean an individual, a partnership, a limited
partnership, a joint venture, a limited liability partnership or company, a
corporation, a proprietorship, a trust, a union, an unincorporated organization,
other business organization, a governmental entity or any department or agency
thereof or any other entity or organization.

            (d) "Restricted Businesses" means the Business.

            (e) "Restricted Period" means a period of five (5) years from the
Closing Date.

            (g) "Restricted Territory" means Georgia and the southeastern states
contiguous thereto.

            (h) "Supplier" shall mean any Person, whether an individual or
entity, from or through which any of the Buyer Group obtains as of the Closing
Date (or has obtained at any time during that twelve (12) month period
immediately prior to the Closing Date), supplies or resources including, without
limitation, investment and other financial resources used in or otherwise
relating to the ordinary course of the Business, for the purpose of rendering or
facilitating the services provided thereby or in connection with the management
of any and all of the functions of such entity's business.

      2. Acknowledgments and Agreements by Seller. Seller acknowledges that (i)
this Agreement includes certain consideration in respect of the goodwill
associated with the operation of the Restricted Businesses by Seller, (ii) the
covenants of Seller contained in this Agreement are a material inducement to
Buyer to enter into this Agreement, (iii) the Buyer Group and each of their
respective Affiliates (each a "Buyer Entity" and collectively, the "Buyer
Entities") has expended and will expend considerable time, effort and capital to
develop the Restricted Businesses, and (iv) the Buyer Group and each of the
other Buyer Entities has a legitimate business interest in protecting its
investment in the Restricted Businesses and would be irreparably damaged if
Seller were to breach the covenants set forth in this Agreement. Accordingly,
Seller agrees that the covenants set forth in this Agreement, (i) are separate
and independent covenants for which valuable consideration has been paid, the
receipt, adequacy and sufficiency of which are acknowledged by Seller, (ii) are
cumulative to all other covenants of Seller in favor of Buyer Group and the
other Buyer Entities

                                      -2-
<PAGE>

contained in this Agreement and shall survive the termination of this Agreement
for the purposes intended, (iii) are reasonable and necessary to protect and
preserve the conduct and operation of the Restricted Businesses by the Buyer
Group and the other Buyer Entities, and (iv) do not impose an undue hardship
upon Seller, do not unreasonably restrict Seller with respect to or from the
performance of services of, relating to or connected with the Restricted
Businesses, the management thereof or otherwise, and are reasonable with respect
to their duration, geographical area and scope.

      3. Noncompetition and Nonsolicitation Covenants. Seller covenants and
agrees that, during the Restricted Period, it shall not, directly or indirectly,
either individually, in partnership, jointly or in conjunction with any other
Person, whether as principal, agent, officer, director, shareholder, owner,
partner, joint venturer, member, manager, employee, independent contractor,
consultant, advisor, sales representative or any other capacity whatsoever:

            (a) engage in any Restricted Business within the Restricted
      Territory;

            (b) interfere with, disturb, or seek to interfere with or disturb
      the relationship (contractual or otherwise) between Buyer and any Person
      who is an employee of, or engaged as an independent contractor, consultant
      or in any similar capacity whatsoever with, Buyer in connection with the
      Business for the purpose or with the intent of inducing or enticing such
      Person to terminate such relationship with Buyer;

            (c) employ or otherwise engage as an employee, independent
      contractor, consultant or any capacity whatsoever, any Person who is, at
      that time, or who has been within one (1) year prior to that time,
      employed by Buyer or in the Business; or

            (d) interfere with, disturb, or seek to interfere with or disturb
      the relationship (contractual or otherwise) between Buyer and any Person
      which is, at that time, or which has been within one (1) year prior to
      that time, a Customer or Supplier of Buyer or the Business for the purpose
      of soliciting or selling products or services in competition with Buyer or
      the Business or inducing such Person to cease doing business with Buyer in
      connection with the Business.

      Notwithstanding anything to the contrary in this Agreement, (a) the
restrictions contained in this Section 3 shall terminate immediately upon a
material breach by Buyer or Anita of the Purchase Agreement as determined
pursuant to the final nonappealable judgment of a court of competent
jurisdiction, and (b) the restrictions contained herein shall not apply to any
entity subsequently acquired by Seller (an "Acquired Entity") where the revenue
of the Restricted Business activities conducted by the Acquired Entity is and
remains throughout the term of this Agreement less than twenty-five percent
(25%) of the total revenue of the Acquired Entity provided that the revenue of
the Restricted Business activities being conducted by Seller and all of its
Affiliates and subsidiaries, in the aggregate, is no greater that five percent
(5%) of the total revenues of the Seller.

                                      -3-
<PAGE>

      4. Non-disclosure; Confidentiality.

            (a) Confidential Information. "Confidential Information" means all
trade secrets and proprietary or business sensitive information primarily
related to the Business, whether in oral, written, graphic, machine-readable or
tangible form, and whether or not registered, and including all notes, plans,
records, documents and other evidence thereof, including but not limited to all:
customer lists, details of client contracts and any other customer information.
"Confidential Information" shall not include (a) any information which becomes
generally available to the public other than as a result of disclosure by Seller
or any relative, agent or representative thereof; (b) becomes available to
Seller on a non-confidential basis from a source other than Seller or any Buyer
Entity or any of its respective employees, agents or representatives, provided
that such source lawfully obtained such information and is not bound by a
confidentiality agreement with Seller or any Buyer Entity; or (c) is required to
be disclosed (y) by law provided, that if Seller is required by law (including,
without limitation, any judicial or administrative proceeding of any
governmental or regulatory authority) to disclose any of the Confidential
Information, Seller shall provide Buyer with prompt written notice of any such
requirement and shall cooperate in full with Buyer to obtain a protective order
or to pursue an action to obtain a waiver from such requirement or (z) pursuant
to the disclosure requirement of the rules and regulations of the Securities and
Exchange Commission. If, in the absence of a protective order or other remedy,
Seller is nonetheless, in the written opinion of Seller's outside counsel,
legally compelled to disclose Confidential Information, Seller may, without
liability hereunder disclose the Confidential Information, provided that (i)
Seller gives Buyer prior written notice of the information to be disclosed, (ii)
Seller only discloses that portion of the Confidential Information which counsel
advises is legally required to be disclosed, and (iii) Seller uses its or his
best efforts to preserve the confidentiality thereof by obtaining reasonable
assurance that confidential treatment will be accorded the Confidential
Information.

            (b) Non-Disclosure. Seller agrees that it will not at any time,
without the prior express written authorization of Buyer, (i) disclose to any
Person any Confidential Information, (ii) use any Confidential Information
whatsoever for any purpose whatsoever, or (iii) permit any Person whomsoever to
examine and/or make copies of any reports or any documents or software (whether
in written form or stored on magnetic, optical or other mass storage media)
which contain or are derived from any Confidential Information. Seller further
agrees that no Confidential Information shall be removed from the premises of
the Business or any Buyer Entity, without the prior express written consent of
such entity.

            (c) Buyer Entity Property. As used in this Agreement, the term
"Buyer Entity Property" means all documents, papers, computer printouts and
disks, records, customer or customer lists, files, manuals, supplies, computer
hardware and software, equipment, inventory and other materials, other than
Excluded Assets (collectively, "Materials"), containing Confidential Information
(as defined above) unless such Confidential Information is redacted or deleted
from the Materials and provided, that the Confidential Information contained in
any Excluded Assets shall be subject to the terms of Section 4(a) and (b)
hereof. Seller recognizes and agrees that:

                                      -4-
<PAGE>

            (i) All Buyer Entity Property shall be and remain the property of
      the Buyer Entity to which such property belongs; and

            (ii) Seller will immediately deliver and surrender to Buyer all
      Buyer Entity Property, including all copies, extracts or any other types
      of reproductions, which Seller has in its respective possession or
      control.

      5. Compensation to Seller. In consideration for the covenants and
agreements of Seller hereunder, there shall be allocated as payment therefor, a
portion of the Purchase Price in accordance with Section 2.4 of the Purchase
Agreement, in the amount set forth in the schedules thereto.

      6. Severability/Modification of Restrictions. The covenants and provisions
contained herein are severable and are to be interpreted as such to the extent
permitted by applicable law. Should any parts, terms or provisions of this
Agreement be declared or determined by any court to be illegal, invalid or
unenforceable for any reason, the legality, validity and enforceability of the
remaining parts, terms and provisions of this Agreement shall not be affected
thereby, and will remain operative in full force and effect. If any court rules
that any of the covenants in Sections 3 or 4 or any part thereof are illegal,
invalid, unenforceable, arbitrary, unreasonable or against public policy for any
reason, including, without limitation because of their geographic or business
scope or duration, then it is the intention of the parties hereto that such
covenants or parts thereof be construed and enforced as if they had been
narrowly drawn so as not to be illegal, invalid, unenforceable, arbitrary,
unreasonable or against public policy and shall be enforced to the maximum
extent permitted by law and the Agreement shall be reformed in accordance
therewith.

      7. Remedies/Enforcement.

            (a) The Buyer provides the livelihood and financial stability for
many employees and investors. All parties agree that compliance with the
covenants and provisions contained herein are necessary to protect the Buyer's
investment in the Restricted Businesses, the Confidential Information, and the
goodwill of the Buyer and that a breach will result in irreparable and
continuing damage to the Buyer. All parties agree that it is impossible to
measure or compensate in money alone the damages that would accrue in the event
that Seller failed to perform his or her respective obligations hereunder.
Therefore, if Seller breaches any covenant or provision hereof, the Buyer shall
have, at its option (without limiting any other right or remedy which may be
available either simultaneously or alternatively): (i) the right and remedy to
have such provisions enforced by specific enforcement, injunctive relief or
other equitable remedy by any court of competent jurisdiction, and (ii) the
right and remedy to require Seller to account for and pay over to the Buyer all
compensation, profits, monies, accruals, increments or other benefits, derived
or received by Seller, (or its, his or her successors and assigns) as a result
of any transactions constituting a breach of any of the provisions hereof, and
(iii) any other remedy provided by law. Seller acknowledges and

                                      -5-
<PAGE>

agrees that the provisions of this Agreement may be enforced by the Buyer or any
successors or assigns thereof.

            (b) It is specifically agreed that the Restricted Period, during
which the agreements and covenants of Seller made in Sections 3 and 4 shall be
effective, shall be computed for Seller by excluding from such computation any
and all of the time during which Seller is in violation of any provision of this
Agreement.

      8. Waiver. The rights and remedies of the parties to this Agreement are
cumulative and not alternative. Neither the failure nor any delay by any party
in exercising any right, power, or privilege under this Agreement will operate
as a waiver of such right, power or privilege, and no single or partial exercise
of any such right, power, or privilege will preclude any other or further
exercise of such right, power or privilege or the exercise of any other right,
power or privilege. To the maximum extent permitted by applicable law (a) no
claim or right arising out of this Agreement can be discharged by one party, in
whole or in part, by a waiver or renunciation of the claim or right unless in
writing signed by the other party; (b) no waiver that may be given by a party
will be applicable except in the specific instance for which it is given; (c) no
waiver by a party of any violation of any provision of this Agreement will
operate as or be deemed a waiver of any later violation by the breaching party,
and (d) no notice to or demand on one party will be deemed to be a waiver of any
obligation of such party or of the right of the party giving such notice or
demand to take further action without notice or demand as provided in this
Agreement.

      9. Covenants Ancillary to Sale of Business. The parties hereto expressly
acknowledge, stipulate and agree that this Agreement and the covenants of Seller
contained herein are ancillary to the Purchase Agreement and the transactions
relating thereto.

      10. Benefit. This Agreement shall inure to the benefit of the Buyer and
its successors and assigns and be binding upon Seller and its successors and
assigns.

      11. Assignment. This Agreement shall not be assignable by any of the
parties hereto without the prior written consent of the other party; provided,
however, that the Buyer shall have the right to assign their respective rights
and obligations under this Agreement in the event of a sale of all or
substantially all of the Buyer's stock or the sale or other transfer of all or
substantially all of its assets to any successor entity or any affiliate
thereof, at any time and in their sole and absolute discretion.

      12. Waiver of Jury Trial. BECAUSE DISPUTES ARISING IN CONNECTION WITH
COMMERCIAL MATTERS, INCLUDING NON-COMPETITION AGREEMENTS, ARE MOST QUICKLY AND
ECONOMICALLY RESOLVED BY AN EXPERIENCED AND EXPERT PERSON AND THE PARTIES WISH
APPLICABLE STATE AND FEDERAL LAWS TO APPLY (RATHER THAN ARBITRATION RULES), THE
PARTIES DESIRE THAT THEIR DISPUTES (IF ANY) BE RESOLVED BY A JUDGE APPLYING SUCH
APPLICABLE LAWS.

                                      -6-
<PAGE>

THEREFORE, TO ACHIEVE THE BEST COMBINATION OF THE BENEFITS OF THE JUDICIAL
SYSTEM AND OF ARBITRATION, THE PARTIES HERETO WAIVE ALL RIGHTS TO TRIAL BY JURY
IN ANY ACTION, SUIT, OR PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE, WHETHER
ARISING IN CONTRACT, TORT, OR OTHERWISE BETWEEN THE PARTIES ARISING OUT OF,
CONNECTED WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED
BETWEEN THEM IN CONNECTION WITH THIS AGREEMENT OR MATTERS RELATED HERETO.

      13. Costs and Attorneys' Fees.

            (a) Award to Prevailing Party in Proceeding. In the event any
attorney is employed by any party to this Agreement with regard to any legal
action or other proceeding brought by any party to this Agreement for the
enforcement of this Agreement, or because of an alleged dispute, breach, default
or misrepresentation in connection with any of the provisions of this Agreement,
then the prevailing party, whether at trial or upon appeal, and in addition to
any other relief to which the prevailing party may be granted, shall be entitled
to recover from the losing party all costs, expenses, and a reasonable sum for
attorney fees incurred by the prevailing party in bringing or defending such
action, arbitration, or proceeding, and in enforcing any judgment granted
therein, all of which costs, expenses and attorneys fees shall be deemed to have
accrued upon the commencement of such action and shall be paid whether or not
such action is prosecuted to judgment.

            (b) Judgment or Order Shall Award. Any judgment or order entered in
such matter shall contain a specific provision providing for the recovery by the
prevailing party of attorney fees, costs, and expenses incurred in enforcing
such judgment. For purposes of this Section, attorney fees shall include,
without limitation, fees incurred in the following: post-judgment motions;
contempt proceedings; garnishment, levy, and debtor and third party
examinations; discovery; and bankruptcy litigation.

      14. Amendment. This Agreement shall not be modified in whole or in part
except by an agreement in writing signed by all the parties hereto.

      15. Construction. The parties hereto acknowledge and agree that they and
their respective legal counsel have participated in the negotiation and
preparation of this Agreement and that should any provision of this Agreement
require judicial interpretation, it is agreed by the parties that the court
interpreting or construing the same shall not apply a presumption that the terms
hereof shall be more strictly construed against one party by reason of the rule
of construction that a document is to be construed more strictly against the
party who itself or through its agent prepared the same.

                                      -7-
<PAGE>

      16. Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

      17. Entire Agreement/Headings. This Agreement, the Indemnity Agreement and
the Purchase Agreement contain the entire agreement between the parties hereto
regarding the subject matter hereof, and supersedes any agreements or
understandings previously reached, made or alleged to have been made or entered
into between them covering the subjects addressed herein. The headings contained
in this Agreement are for convenience of reference only and shall not be
considered a part hereof.

      18. Choice of Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Illinois.

            [THE REST OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK]

                                      -8-
<PAGE>

      IN WITNESS WHEREOF, the parties hereto have set their hands and seals on
the date shown below.

                                        ANITA LTD.

                                        By:/s/ Phillip Aginsky
                                               Name: Phillip Aginsky
                                               Title: Attorney-in-fact

                                        MICRO ENVIRONMENTS, L.L.C.

                                        By:/s/ Phillip Aginsky
                                               Name: Phillip Aginsky
                                               Title: Manager

                                        TEKGRAF, INC.

                                        By:/s/ Thomas M. Mason
                                               Name: Thomas M. Mason
                                               Title:CFO

                                      -9-
<PAGE>

Exhibit 10.1-4

                                     RELEASE

      The Buyer Group and Philip Aginsky, on behalf of themselves, and each of
their present and former agents, employees, officers, directors, shareholders,
partners, attorneys, heirs, legal representatives, corporate affiliates,
including parent and subsidiary corporations, successors and assigns, hereby
forever release and discharge Seller, and each of its present and former agents,
employees, officers, directors, shareholders, partners, attorneys, heirs, legal
representatives, corporate affiliates, including parent and subsidiary
corporations, successors and assigns, of and from any and all actions, causes of
action, claims, debts, liabilities, damages, costs, loss of services, expenses,
compensation, demands and/or suits whatsoever, whether known or unknown, in law
or in equity, arising from or connected in any manner to the Dissenter's Shares
that the Buyer Group has agreed to deliver to Seller (regardless of whether such
Dissenter's Shares are to be delivered at Closing or thereafter pursuant to
Section 2.2 of the Agreement (as defined below)), including but not limited to,
all rights and claims provided by Article 13 of the Georgia Business Corporation
Code, all rights and claims that have been or could have been asserted pursuant
to Article 13 of the Georgia Business Corporation Code, and all rights and
claims that were raised or could have been raised in the Lawsuit;

      PROVIDED, HOWEVER, that, if Seller releases Dissenter's Shares to the
Buyer Group pursuant to Section 2.2 of the Agreement, this RELEASE shall not
apply to such released Dissenter's Shares; and

      PROVIDED FURTHER, HOWEVER, that this RELEASE shall not apply to and shall
not affect Dissenter's Shares that the Buyer Group is not obligated to deliver
to the Seller under the Agreement.

      IN ADDITION, Philip Aginsky represents and warrants that he has no
ownership interest in the Dissenter's Shares and releases the Seller from any
and all claims relating to the transactions contemplated by the Agreement. The
foregoing RELEASE shall not affect the Buyer Group's rights under the Agreement.

      Unless otherwise defined herein, all capitalized terms used herein shall
have the meanings ascribed to such terms in the Asset Purchase Agreement (the
"Agreement") made and entered into effective as of close of business October 31,
2000 by and among Tekgraf, Inc., a Georgia corporation, Micro Environments,
L.L.C., a Georgia limited liability company, and Anita Ltd., a corporation
organized under the laws of the Channel Islands.

      This RELEASE shall become effective upon completion of the Closing.

<PAGE>

      IN WITNESS WHEREOF the parties have executed this RELEASE as of the
Closing Date.

MICRO ENVIRONMENTS, L.L.C.              ANITA LTD.

By:  /s/ Phillip Aginsky                By:  /s/ Phillip Aginsky

Its: Manager                            Its: Attorney-in-fact

/s/ Phillip Aginsky
-----------------------------

PHILIP AGINSKY

<PAGE>

Exhibit 10.1-5

                               INDEMNITY AGREEMENT

      THIS INDEMNITY AGREEMENT (this "Agreement") is made and entered into as of
the 31st day of October, 2000 (the "Effective Date"), by and among TEKGRAF,
INC., a Georgia corporation ("Seller"), MICRO ENVIRONMENTS, L.L.C., a Georgia
limited liability company ("Buyer"), and ANITA LTD., a corporation organized
under the laws of the Channel Islands ("Anita"). Buyer and Anita are sometimes
referred to herein as the "Buyer Group".

                              W I T N E S S E T H:

      WHEREAS, Anita is a shareholder of Seller owning shares of the Class A
Common Stock (which were formerly shares of Class B Common Stock) of Seller and
holds a majority of the membership interests of Buyer, and has exercised its
dissenters rights with respect to its holdings of Seller's Class A Common Stock;

      WHEREAS, Anita is a party to that certain lawsuit captioned Tekgraf, Inc.,
a Georgia corporation, Plaintiff, v. Anita Ltd., Dan I. Bailey, Peter Goletz,
Michelle L. Lightman, and John W. Parrillo, Defendants, pending in the Superior
Court of Fulton County, Georgia, as Case No. 2000 CV 23746 (the "Lawsuit")
relating to the exercise of dissenters rights by Anita and others; and

      WHEREAS, Seller, through its "Tekgraf Systems" division, is engaged in the
business of the manufacture and sale of custom or "made to order" premium
servers and network workstations at its facility at Norcross, Georgia (the
"Business"); and

      WHEREAS, in partial settlement of the Lawsuit, the Seller and the Buyer
Group have entered into an Asset Purchase Agreement, dated as of even date
herewith, pursuant to which Buyer is acquiring those assets of Seller and
assuming certain of the liabilities of Seller relating to the Business in
exchange for the delivery of a portion of the shares of Class A Common Stock
(which were formerly shares of Class B Common Stock), the fair value of which,
among other things, is the subject of the Lawsuit (the "Purchase Agreement";
capitalized terms not defined herein shall have the meaning assigned to such
terms in the Purchase Agreement); and

      WHEREAS, each party understands and acknowledges that the covenants and
agreements set forth herein are, collectively, a material inducement to the
other party to enter into the Purchase Agreement, without which it would not
have entered into the Purchase Agreement.

      NOW, THEREFORE, for and in consideration of the above premises, the mutual
agreements hereinafter set forth, and other good and valuable consideration, the
receipt, adequacy and sufficiency of which are hereby acknowledged, the parties
hereto covenant and agree as follows:

<PAGE>

      1. Indemnification by Seller. Subject to this Agreement, Seller shall
indemnify, defend and hold harmless Buyer and Anita and each of the officers,
directors, employees, stockholders, members, attorneys, accountants, partners,
representatives, agents, successors and assigns thereof (each a "Buyer
Indemnified Party" and collectively, the "Buyer Indemnified Parties"), at all
times after the date of this Agreement, against and in respect of any and all
demands, claims, payments, obligations, deficiencies, fines, penalties,
assessments, actions, liens, causes of action, suits, proceedings, judgments,
losses, damages, liabilities, costs and expenses, including, without limitation,
the reasonable legal fees and expenses (individually, a "Claim" and
collectively, "Claims") resulting from, or in respect of, any of the following:

            1.1. Any misrepresentation, breach of warranty, or nonfulfillment of
any covenant or other obligation on the part of Seller under the Purchase
Agreement;

            1.2. the Epicor Software Corporation lawsuit against Seller as
described in Schedule 5.7 to the Purchase Agreement; and

            1.3. All demands, assessments, judgments, costs and reasonable legal
and other expenses arising from, or in connection with any Claim incident to any
of the foregoing.

      2. Indemnification by Buyer and Anita. Subject to this Agreement, Buyer
and Anita, jointly and severally, shall indemnify, defend and hold harmless
Seller and each of the officers, directors, employees, stockholders, members,
attorneys, accountants, partners, representatives, agents, successors and
assigns thereof (each, a "Seller Indemnified Party" and collectively, the
"Seller Indemnified Parties"), at all times after the date of this Agreement,
against and in respect of any and all Claims (including, without limitation, the
fees and expenses of counsel) resulting from, or in respect of:

            2.1. Any misrepresentation, breach of warranty, or nonfulfillment of
any covenant or other obligation on the part of Buyer or Anita under the
Purchase Agreement; and

            2.2. All demands, assessments, judgments, costs and reasonable legal
and other expenses arising from, or in connection with any Claim incident to any
of the foregoing.

      3. Third Party Claims .

            3.1. Except as otherwise provided in this Agreement, the following
procedures shall be applicable with respect to indemnification for third party
Claims. Promptly after receipt by the party seeking indemnification hereunder
(hereinafter referred to as the "Indemnitee") of notice of the commencement of
any action or the assertion of any Claim, liability or obligation by a third
party (whether by legal process or otherwise), against which Claim, liability or
obligation the other party to this Agreement (hereinafter the "Indemnitor") is,
or may be, required under this Agreement to indemnify such Indemnitee, the
Indemnitee will, if a Claim thereon is to be, or may be, made against the
Indemnitor, notify the Indemnitor in writing of the commencement or assertion
thereof and give the Indemnitor a copy of such Claim, process and all legal
pleadings. The Indemnitor shall have the right to participate in the defense of
such action with counsel of reputable standing. The Indemnitor shall have the
right to assume the

                                      -2-
<PAGE>

defense of such action. The Indemnitor and the Indemnitee shall cooperate in the
defense of such Claims. In the event that the Indemnitor shall assume or
participate in the defense of such proceeding as provided herein, the Indemnitee
shall make available to the Indemnitor all relevant records and sign such
documents as are necessary to defend such audit, assessment or other proceeding
in a timely manner.

            3.2. Upon judgment, determination, settlement or compromise of any
third party Claim, the Indemnitor shall pay promptly on behalf of the
Indemnitee, and/or to the Indemnitee in reimbursement of any amount theretofore
required to be paid by it, the amount so determined by judgment, determination,
settlement or compromise, unless in the case of a judgment an appeal is made
from the judgment, plus all other Claims of the Indemnitee with respect thereto
(including, without limitation, legal fees and expenses). If the Indemnitor
desires to appeal from an adverse judgment, then the Indemnitor shall post and
pay the cost of the security or bond to stay execution of the judgment pending
appeal. Upon the payment in full by the Indemnitor of such amounts, the
Indemnitor shall succeed to the rights of such Indemnitee, to the extent not
waived in settlement, against the third party who made such third party Claim.

            3.3. Prior to paying or settling any Claim against which an
Indemnitor is, or may be, obligated under this Agreement to indemnify an
Indemnitee, the Indemnitee must first supply the Indemnitor with a copy of a
final court judgment or decree holding the Indemnitee liable on such Claim or
absent such judgment or decree, a copy of the terms of the settlement of such
Claim, provided, however, that Indemnitee must first receive the written
approval of the terms and conditions of such settlement from the Indemnitor. An
Indemnitor shall have the right to settle any Claim against it or as to which it
has assumed the defense, subject to the prior written approval of the
Indemnitee, which approval shall not be unreasonably withheld, provided that
such settlement involves only the payment of a fixed sum which the Indemnitor is
obligated to pay and does not include any admission of liability or other such
similar admissions by or related to Indemnitee with respect to such Claim.

            3.4. An Indemnitee shall have the right to employ its own counsel in
any case, but the fees and expenses of such counsel shall be at the expense of
the Indemnitee unless (i) the employment of such counsel shall have been
authorized in writing by the Indemnitor in connection with the defense of such
action or Claim, (ii) the Indemnitor shall not have employed, or is prohibited
under this Section 3.4 from employing, counsel in the defense of such action or
Claim, or (iii) such Indemnitee shall have reasonably concluded that there may
be defenses available to it which are contrary to, or inconsistent with, those
available to the Indemnitor, in any of which events such fees and expenses of
not more than one additional counsel for the Indemnitee shall be borne by the
Indemnitor.

                                      -3-
<PAGE>

      4. Limitation on Indemnification. Any indemnification for a Claim
hereunder must be made within the time period for survival set forth in Section
11 of the Purchase Agreement. No party indemnified under this Agreement shall
assert any claim for indemnification hereunder against the other with respect to
the breach of any representation or warranty under the Purchase Agreement until
such time as, and solely to the extent that, the aggregate of all such Claims
which the indemnified party may have against the other shall exceed $50,000 and
then only to the extent of the Claims in excess of $50,000. Notwithstanding any
other term of this Agreement, neither the Seller, on the one hand, nor Buyer or
Anita, on the other hand, shall be liable to the other with respect to the
breach of any representation or warranty under the Purchase Agreement for an
amount which exceeds $880,000.

      5. Effect of Investigation. The right to indemnification, payment of
damages or other remedy based on such representations, warranties, covenants,
and obligations will not be affected by any investigation conducted with respect
to, or any knowledge acquired (or capable of being acquired) at any time,
whether before or after the execution and delivery of this Agreement or the
Closing Date, with respect to the accuracy or inaccuracy of or compliance with,
any such representation, warranty, covenant, or obligation. The waiver of any
condition based on the accuracy of any representation or warranty, or on the
performance of or compliance with any covenant or obligation, will not affect
the right to indemnification, payment of damages, or other remedy based on such
representations, warranties, covenants, and obligations.

      6. Notices. All notices, requests, demands and other communications
required or permitted to be given hereunder shall be in writing and shall be
deemed to have been duly given when delivered by hand, when mailed by certified
or registered mail, when received by facsimile transmission, or when deposited
with a nationally-recognized carrier for overnight delivery.

      7. Governing Law. This Agreement shall be governed by and construed in
accordance with the internal laws of the State of Illinois, without giving
effect to any choice or conflict of law provisions or rules (whether of the
State of Illinois or otherwise) that would cause the application of the laws of
any jurisdiction other than the State of Illinois.

      8. Successors and Assigns. This Agreement shall be binding upon and inure
to the benefit of the parties hereto, and their successors and assigns, however,
neither party may assign its rights, interests or obligations hereunder without
the prior written consent of the other party.

      9. Waiver. The waiver by either party of a breach by the other party of
any provision of this Agreement shall not operate or be construed as a waiver of
any subsequent breach by the waiving party.

      10. Construction. The parties hereto acknowledge and agree that they and
their respective legal counsel have participated in the negotiation and
preparation of this Agreement and that should any provision of this Agreement
require judicial interpretation, it is agreed by the parties that the court
interpreting or construing the same shall not apply a presumption that the terms
hereof shall be more strictly construed against one party by reason of the rule
of construction that a document is to be construed more strictly against the
party who itself or through its agent prepared the same.

                                      -4-
<PAGE>

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

      12. Titles and Headings. The titles and headings to sections contained
herein are for purposes of reference only, and shall not affect the provisions
hereof.

      13. Entire Agreement. The Purchase Agreement, this Agreement and the
Non-competition, Non-solicitation and Nondisclosure Agreement constitutes the
entire agreement among the parties with respect to the matters covered thereby
and supersede all previous written, oral or implied understanding among them
with respect to such matters.

      14. Amendment and Modification. The terms of this Agreement may be
amended, modified, waived or supplemented only by mutual consent set forth in a
writing duly signed by the parties hereto.

      15. Severability. In case any of the provisions contained in this
Agreement are found to be invalid, illegal or unenforceable in any respect, any
invalidity, illegality or unenforceability shall not affect any other provision
of this Agreement, but this Agreement shall be construed as if such invalid,
illegal or unenforceable provision had been limited or modified (consistent with
its general intent) to the extent necessary so that it shall be valid, legal and
enforceable, or if it shall not be possible to so limit or modify such invalid
or illegal or unenforceable provision or part of a provision, this Agreement
shall be construed as if such invalid or illegal or unenforceable provision or
part of a provision had never been contained herein.

      16. Covenants Ancillary to Sale of Business. The parties hereto expressly
acknowledge, stipulate and agree that this Agreement and the covenants contained
herein are ancillary to the Purchase Agreement and the transactions relating
thereto.

                                      -5-
<PAGE>

      IN WITNESS WHEREOF, the parties hereto have set their hands and seals on
the date shown below.

                                        ANITA LTD.

                                        By:/s/ Phillip Aginsky
                                               Name: Phillip Aginsky
                                               Title: Attorney-in-fact

                                        MICRO ENVIRONMENTS, L.L.C.

                                        By:/s/ Phillip Aginsky
                                               Name: Phillip Aginsky
                                               Title: Manager

                                        TEKGRAF, INC.

                                        By:/s/ Thomas M. Mason
                                               Name: Thomas M. Mason
                                               Title:CFO

                                      -6-
<PAGE>

Exhibit 10.1-6

                                    AGREEMENT

      THIS AGREEMENT (this "Agreement") made and entered into effective as of
close of business October 31, 2000 by and among Tekgraf, Inc., a Georgia
corporation (the "Company"), Anita Ltd., a corporation organized under the laws
of the Channel Islands ("Anita"), Dan I. Bailey, Peter Goletz, Michelle L.
Lightman, and John W. Parrillo (collectively, the "Shareholders"). Unless
otherwise defined herein, all capitalized terms used herein shall have the
meanings ascribed to such terms in the Purchase Agreement (as defined below).

      WHEREAS, the Company and Anita are parties to the Purchase Agreement (as
defined below);

      WHEREAS, as an inducement to the Company to enter into and consummate the
Purchase Agreement, the Shareholders are being asked to enter into this
Agreement;

      THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which is acknowledged, the parties agree as follows:

      1) The Shareholders and the Company agree to suspend and not pursue any
and all pending litigation or legal proceedings with respect to the Lawsuit (as
defined below), until January 1, 2001. The Shareholders and the Company further
agree to use their best efforts to take any action necessary to obtain Court
approval of a pretrial litigation schedule in the Lawsuit that is consistent
with this moratorium and preserves the Shareholders' and the Company's rights to
pursue the Lawsuit thereafter, including but not limited to adequate time in
which to complete discovery.

      2) The Shareholders and the Company agree that the value attributed to the
shares for purposes of the Purchase Agreement may not be used in any manner in
any pending or future litigation between the Shareholders and the Company,
including without limitation, the Lawsuit, as evidence or argument in support of
the value of Seller's Class A Common Stock or Class B Common Stock previously
tendered to the Seller by the defendants in the Lawsuit in the exercise of their
dissenter's rights.

      "Purchase Agreement" refers to the Asset Purchase Agreement made and
entered into effective as of close of business October 31, 2000 by and among
Tekgraf, Inc., a Georgia corporation, Micro Environments, L.L.C., a Georgia
limited liability company, and Anita Ltd., a corporation organized under the
laws of the Channel Islands.

      "Lawsuit" refers to the lawsuit captioned Tekgraf, Inc., a Georgia
corporation, Plaintiff, v. Anita Ltd., Dan I. Bailey, Peter Goletz, Michelle L.
Lightman, and John W. Parrillo, Defendants, pending in the Superior Court of
Fulton County, Georgia, as Case No. 2000 CV 23746 relating to the exercise of
dissenters rights by Anita and others.

<PAGE>

      This Agreement may be executed in any number of counterparts, each of
which will be deemed an original, but all of which together will constitute one
and the same instrument.

      IN WITNESS WHEREOF the parties have executed this Agreement as of the date
set forth above.

TEKGRAF, INC.                           ANITA LTD.

By: /s/ Thomas M. Mason                 By: /s/ Phillip Aginsky

Its: CFO                                Its:  Attorney-in-fact

                                        /s/ Dan I. Bailey
                                        Dan I. Bailey

                                        /s/ Peter Goletz
                                        Peter Goletz

                                        /s/ Michelle L. Lightman
                                        Michelle L. Lightman

                                        /s/ John W. Parrillo
                                        John W. ParrilloPrepared by MERRILL CORPORATION www.edgaradvantage.com

EXHIBIT 10.1  

 CREDIT AGREEMENT  

    THIS CREDIT AGREEMENT dated as of September 15, 2000 (this "Agreement") is entered into among Fargo
Electronics, Inc., a Delaware corporation (the "Company"), the financial institutions that are or may from time to time become parties hereto
(together with their respective successors and assigns, the "Banks") and LASALLE BANK NATIONAL ASSOCIATION (in its individual capacity,
"LaSalle"), as agent for the Banks. 

    WHEREAS,
the Banks have agreed to make available to the Company a revolving credit facility (which includes letters of credit) upon the terms and conditions set forth herein; 

    NOW,
THEREFORE, in consideration of the mutual agreements herein contained, the parties hereto agree as follows: 

SECTION 1

DEFINITIONS.  

    1.1  Definitions.  When used herein the following terms shall have the following meanings: 

    Account Debtor means any Person who is obligated to the Company or any Subsidiary under an Account Receivable. 

    Account Receivable means, with respect to any Person, any right of such person to payment for goods sold or leased or for services
rendered, whether or not evidenced by an instrument or chattel paper and whether or not yet earned by performance. 

    Acquisition means any transaction or series of related transactions for the purpose of or resulting, directly or indirectly, in
(a) the acquisition of all or substantially all of the assets of a Person, or of all
or substantially all of any business or division of a Person, (b) the acquisition of in excess of 50% of the capital stock, partnership interests, membership interests or equity of any Person,
or otherwise causing any Person to become a Subsidiary, or (c) a merger or consolidation or any other combination with another Person (other than a Person that is a Subsidiary). 

    Affected Loan—see Section 8.3. 

    Affiliate of any Person means (i) any other Person which, directly or indirectly, controls or is controlled by or is under
common control with such Person and (ii) any officer or director of such Person. A Person shall be deemed to be "controlled by" any other Person if such Person possesses, directly or
indirectly, power to vote 10% or more of the securities (on a fully diluted basis) having ordinary voting power for the election of directors or managers or power to direct or cause the direction of
the management and policies of such Person whether by contract or otherwise. 

    Agent means LaSalle in its capacity as agent for the Banks hereunder and any successor thereto in such capacity. 

    Agreement—see the Preamble. 

    Asset Sale means the sale, lease, assignment or other transfer for value (each a "Disposition") by the Company or any Subsidiary to any
Person (other than the Company or any Subsidiary) of any asset or right of the company or such Subsidiary other than (a) the Disposition of any asset which is to be replaced, and is in fact
replaced, within 90 days with another asset performing the same or a similar function, (b) the sale or lease of inventory in the ordinary course of business and (c) other
Dispositions in any Fiscal Year the Net Cash Proceeds of which do not in the aggregate exceed $250,000.00. 

    Assignment Agreement—see Section 14.9.1. 

    Attorney Costs means, with respect to any Person, all reasonable fees and charges of any counsel to such Person, the reasonable
allocable cost of internal legal services of such Person, all reasonable disbursements of such internal counsel and all court costs and similar legal expenses. 

    Bank—see the Preamble. References to the "Banks" shall include the Issuing
Bank; for purposes of clarification only, to the extent that LaSalle (or any successor Issuing Bank) may have any rights or obligations in addition to those of the other Banks due to its status as
Issuing Bank, its status as such will be specifically referenced. 

    Base Rate means at any time the greater of (a) the Federal Funds Rate plus 0.5% and (b) the Prime Rate. 

    Base Rate Loan means any Loan which bears interest at or by reference to the Base Rate. 

    Base Rate Margin—see the Pricing Schedule. 

    Borrowing Base means, at any date of determination during any Fiscal Month in one of the periods set forth below, the amount determined
by multiplying the factor set forth in the following table for the specified period times the Company's EBITDA for the twelve Fiscal Month Period ending on the last day of the second Fiscal Month
immediately preceding such date of determination. 

	Period
 
	 	Multiple Factor

	Closing Date to and including December 31, 2000	 	2.50
	January 1, 2001 to and including June 30, 2001	 	2.25
	At all times thereafter	 	2.00.

    Borrowing Base Certificate means a certificate substantially in the form of  Exhibit D. 

    Business Day means any day on which LaSalle is open for commercial banking business in Chicago, Illinois and Minneapolis, Minnesota
and, in the case of a Business Day which relates to a Eurodollar Loan, on which dealings are carried on in the London interbank eurodollar market. 

    Capital Expenditures means all expenditures which, in accordance with GAAP, would be required to be capitalized and shown on the
consolidated balance sheet of the Company, but excluding expenditures made in connection with the replacement, substitution or restoration of assets to the extent financed (i) from insurance
proceeds (or other similar recoveries) paid on account of the loss of or damage to the assets being replaced or restored or (ii) with awards of compensation arising from the taking by eminent
domain or condemnation of the assets being replaced. 

    Capital Lease means, with respect to any Person, any lease of (or other agreement conveying the right to use) any real or personal
property by such Person that, in conformity with GAAP, is accounted for as a capital lease on the balance sheet of such Person. 

    Cash Collateralize means to deliver cash collateral to the Agent, to be held as cash collateral for outstanding Letters of Credit,
pursuant to documentation satisfactory to the Agent, derivatives of such term have corresponding meanings. 

    Cash Equivalent Investment means, at any time, (a) any evidence of Debt, maturing not more than one year after such time, issued
or guaranteed by the United States Government or any agency thereof, (b) commercial paper, maturing not more than one year from the date of issue, or corporate demand notes, in each case
(unless issued by a Bank or its holding company) rated at least A-l by Standard & Poor's Ratings Group or P-l by Moody's Investors Service, Inc., (c) any
deposit account, certificate of deposit (or time deposits represented by such certificates of deposit) or banker's acceptance, maturing not more than one year after such time, or overnight Federal
Funds transactions that are issued or sold by any Bank or its holding company or by a commercial banking institution that is a member of the 

2

Federal Reserve System and has a combined capital and surplus and undivided profits of not less than $500,000,000 and (d) any repurchase agreement entered into with any Bank (or other
commercial banking institution of the stature referred to in clause (c)) which (i) is secured by a fully perfected security interest in
any obligation of the type described in any of clauses (a) through (c) and (ii) has a
market value at the time such repurchase agreement is entered into of not less than 100% of the repurchase obligation of such Bank (or other commercial banking institution) thereunder. 

    CERCLA—see Section 9.15. 

    Closing Date—see Section 11.1. 

    Code means the Internal Revenue Code of 1986. 

    Collateral Access Agreement means an agreement in form and substance reasonably satisfactory to the Agent pursuant to which a mortgagee
or lessor of real property on which collateral is stored or otherwise located, or a warehouseman, processor or other bailee of Inventory, acknowledges the Liens of the Agent and waives any Liens held
by such Person on such property, and, in the case of any such agreement with a mortgagee or lessor, permits the Agent access to and use of such real property for a reasonable amount of time following
the occurrence and during the continuance of an Event of Default to assemble, complete and sell any collateral stored or otherwise located thereon. 

    Collateral Documents means the Security Agreement and any other agreement or instrument pursuant to which the Company, any Subsidiary
or any other Person grants collateral to the Agent for the benefit of the Banks. 

    Commitment means, as to any Bank, such Bank's commitment to make Loans, and to issue or participate in Letters of Credit, under this
Agreement. The initial amount of each Bank's Pro Rata Share of the Revolving Commitment Amount is set forth on Schedule 2.1. 

    Company—see the Preamble. 

    Computation Period means each period of four consecutive Fiscal Quarters ending on the last day of a Fiscal Quarter thereafter except
that respect to the Computation Period for the Interest Coverage Ratio, Computation Period means each of the following periods: (i) the Fiscal Quarter ending September 30, 2000;
(ii) the period of two consecutive Fiscal Quarters ending December 31, 2000; (iii) the period of three consecutive Fiscal Quarters ending March 31,2001; and
(iv) each period of four consecutive Fiscal Quarters ending on June 30, 2001 or on the last day of a Fiscal Quarter thereafter. 

    Consolidated Net Income means, with respect to the Company and its Subsidiaries for any period, the net income (or loss) of the Company
and its Subsidiaries for such period, excluding any gains from Asset Sales, any extraordinary gains or extraordinary non-cash losses, any
gains or non-cash losses from discontinued operations and any other non-recurring gains or non-cash losses. 

    Controlled Group means all members of a controlled group of corporations and all members of a controlled group of trades or businesses
(whether or not incorporated) under common control which, together with the Company, are treated as a single employer under Section 414 of the Code or Section 4001 of ERISA. 

    Debt of any Person means, without duplication, (a) all indebtedness of such Person for borrowed money, whether or not evidenced
by bonds, debentures, notes or similar instruments, (b) all obligations of such Person as lessee under Capital Leases which have been or should be recorded as liabilities on a balance sheet of
such Person in accordance with GAAP or under any lease treated as an operating lease under GAAP and as a loan or financing for U.S. income tax purposes; (c) all obligations of such Person to
pay the deferred purchase price of property or services (excluding trade accounts payable in the ordinary course of business), (d) all indebtedness secured by a Lien on the property of such
Person, 

3

whether or not such indebtedness shall have been assumed by such Person, (e) all obligations, contingent or otherwise, with respect to the face amount of all letters of credit (whether or not
drawn) and banker's acceptances issued for the account of such Person (including the Letters of Credit), (f) all Hedging Obligations of such Person, (g) all Suretyship Liabilities of
such Person and (h) all Debt of any partnership of which such Person is a general partner and for which such Person is or may become personally liable. 

    Debt to be Repaid means Debt listed on Schedule 11.1. 

    Designated Person means the Company's Chief Financial Officer, Treasurer, Vice President of Administration or Director of Finance. 

    Designated Proceeds—see Section 6.2.2(a). 

    Disposal—see the definition of "Release". 

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

    EBITDA means, for any period, Consolidated Net Income for such period plus, to the extent deducted in determining such Consolidated Net
Income, Interest Expense, income tax expense, depreciation and amortization for such period. 

    Environmental Claims means all claims, however asserted, by any governmental, regulatory or judicial authority or other Person alleging
potential liability or responsibility for violation of any Environmental Law, or for release or injury to the environment. 

    Environmental Laws means all present or future federal, state or local laws, statutes, common law duties, rules, regulations,
ordinances and codes, together with all administrative orders, directed duties, requests, licenses, authorizations and permits of, and agreements with, any governmental authority, in each case
relating to Environmental Matters. 

    Environmental Matters means any matter arising out of or relating to health and safety, or pollution or protection of the environment
or workplace, including any of the foregoing relating to the presence, use, production, generation, handling, transport, treatment, storage, disposal, distribution, discharge, release, control or
cleanup of any Hazardous Substance. 

    ERISA means the Employee Retirement Income Security Act of 1974. 

    Eurocurrency Reserve Percentage means, with respect to any Eurodollar Loan for any Interest Period, a percentage (expressed as a
decimal) equal to the daily average during such Interest Period of the percentage in effect on each day of such Interest Period, as prescribed by the FRB, for determining the aggregate maximum reserve
requirements applicable to "Eurocurrency Liabilities" pursuant to Regulation D or any other then applicable regulation of the FRB which prescribes reserve requirements applicable to
"Eurocurrency Liabilities" as presently defined in Regulation D. 

    Eurodollar Loan means any Loan which bears interest at a rate determined by reference to the Eurodollar Rate (Reserve Adjusted). 

    Eurodollar Margin—see the Pricing Schedule. 

    Eurodollar Office means with respect to any Bank the office or offices of such Bank which shall be making or maintaining the Eurodollar
Loans of such Bank hereunder. A Eurodollar Office of any Bank may be, at the option of such Bank, either a domestic or foreign office. 

    Eurodollar Rate means, with respect to any Eurodollar Loan for any Interest Period, a rate per annum equal to the offered rate for
deposits in Dollars for a period equal or comparable to such 

4

Interest Period which appears on Telerate page 3750 as of 11:00 A.M. (London time) two Business Days prior to the first day of such Interest Period. "Telerate Page 3750" means the display
designated as "Page 3750" on the Telerate Service (or such other page as may replace page 3750 on that service or such other service as may be nominated by the British Bankers' Association as the
information vendor for the purpose of displaying British Bankers' Association Interest Settlement Rates for Dollar deposits). 

    Eurodollar Rate (Reserve Adjusted) means, with respect to any Eurodollar Loan for any Interest Period, a rate per annum (rounded
upwards, if necessary, to the nearest 1/100th of 1%) determined pursuant to the following formula: 

	Eurodollar Rate

(Reserve Adjusted)	 	=	 	Eurodollar Rate
 1-Eurocurrency Reserve Percentage.

    Event of Default means any of the events described in Section 12.1. 

    Federal Funds Rate means, 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 publication, "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 Agent of the rates for the last
transaction in overnight Federal funds arranged prior to 9:00 A.M. (New York City time) on that day by each of three leading brokers of Federal funds transactions in New York City selected by
the Agent. 

    Fiscal Month means a fiscal month of a Fiscal Year. 

    Fiscal Quarter means a fiscal quarter of a Fiscal Year. 

    Fiscal Year means the fiscal year of the Company and its Subsidiaries, which period shall be the 12-month period ending on
December 31 of each year. References to a Fiscal Year with a number corresponding to any calendar year (e.g., "Fiscal Year 2000") refer to the Fiscal Year ending on December 31 of such
calendar year. 

    FRB means the Board of Governors of the Federal Reserve System or any successor thereto. 

    GAAP means generally accepted accounting principles 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 Standards Board (or agencies with similar functions of
comparable stature and authority within the U.S. accounting profession), which are applicable to the circumstances as of the date of determination. 

    Group—see Section 2.2.1. 

    Guaranty means a guaranty in the form approved by the Agent and Required Banks. 

    Hazardous Substances—see Section 9.15. 

    Hedging Agreement means any interest rate, currency or commodity swap agreement, cap agreement or collar agreement, and any other
agreement or arrangement designed to protect a Person against fluctuations in interest rates, currency exchange rates or commodity prices. 

    Hedging Obligation means, with respect to any Person, any liability of such Person under any Hedging Agreement. 

5

    Interest Coverage Ratio means, for any Computation Period, the ratio of (a) EBITDA for such Computation Period to
(b) Interest Expense for such Computation Period; provided that for the Computation Periods ending September 30, 2000, December 31,
2000 and March 31, 2001, both EBITDA and Interest Expense shall be multiplied by 4, 2 and 1.33, respectively. 

    Interest Expense means for any period the consolidated interest expense of the Company and its Subsidiaries for such period (including
all imputed interest on Capital Leases and synthetic leases) and all commitment fees, letter of credit fees, agency fees, facility fees, balance deficiency fees and similar fees or expenses in
connection with the borrowing of money. 

    Interest Period means, as to any Eurodollar Loan, the period commencing on the date such Loan is borrowed or continued as, or converted
into, a Eurodollar Loan and ending on the date one, two, three or six months thereafter as selected by the Company pursuant to Section 2.2.2 or  2.2.3,
as the case may be; provided that: 

     (i) if
any Interest Period would otherwise end on a day that is not a Business Day, such Interest Period shall be extended to the following Business Day unless the
result of such extension would be to carry such Interest Period into another calendar month, in which event such Interest Period shall end on the preceding Business Day; 

    (ii) any
Interest Period that begins on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period shall end on
the last Business Day of the calendar month at the end of such Interest Period; and 

    (iii) the
Company may not select any Interest Period for a Revolving Loan which would extend beyond the scheduled Termination Date. 

    Inventory has the meaning assigned to such term in the Uniform Commercial Code as in effect in the State of Minnesota on the date
hereof. 

    Investment means, relative to any Person, any investment in another Person, whether by acquisition of any debt or equity security, by
making any loan or advance or by becoming obligated with respect to a Suretyship Liability in respect of obligations of such other Person (other than travel, relocation and similar advances to
employees and agents in the ordinary course of business). 

    Issuing Bank means LaSalle in its capacity as the issuer of Letters of Credit hereunder and its successors and assigns in such
capacity. 

    LaSalle—see the Preamble. 

    L/C Application means, with respect to any request for the issuance of a Letter of Credit, a letter of credit application in the form
being used by the Issuing Bank at the time of such request for the type of letter of credit requested. 

    LC Fee Rate—see the Pricing Schedule. 

    Letter of Credit—see Section 2.1.3. 

    Lien means, with respect to any Person, any interest granted by such Person in any real or personal property, asset or other right
owned or being purchased or acquired by such Person which secures payment or performance of any obligation and shall include any mortgage, lien, encumbrance, charge or other security interest of any
kind, whether arising by contract, as a matter of law, by judicial process or otherwise. 

    Loan Documents means this Agreement, the Notes, the Guaranty, the L/C Applications and the Collateral Documents. 

6

    Loan Party means the Company and each Subsidiary. 

    Loans means Revolving Loans. 

    Mandatory Prepayment Event—see Section 6.2.2(a). 

    Margin Stock means any "margin stock" as defined in Regulation U. 

    Master Letter of Credit Agreement means a Master Letter of Credit Agreement substantially in the form of  Exhibit H. 

    Material Adverse Effect means (a) a material adverse change in, or a material adverse effect upon, the financial condition,
operations, assets, business, properties or prospects of the Company and its Subsidiaries taken as a whole, (b) a material impairment of the ability of the Company or any Subsidiary to perform
any of its obligations under any Loan Document or (c) a material adverse effect upon any substantial portion of the collateral under the Collateral Documents or upon the legality, validity,
binding effect or enforceability against the Company or any Subsidiary of any Loan Document. 

    Multiemployer Pension Plan means a multi-employer plan, as defined in Section 4001(a)(3) of ERISA, to which the Company or any
member of the Controlled Group may have any liability. 

    Net Cash Proceeds means: 

    (a) with
respect to any Asset Sale the aggregate cash proceeds (including cash proceeds received by way of deferred payment of principal pursuant to a note, installment
receivable or otherwise, but only as and when received) received by the Company or any Subsidiary pursuant to such Asset Sale net of (i) the direct costs relating to such sale, transfer or
other disposition (including sales commissions and legal, accounting and investment banking fees), (ii) taxes paid or reasonably estimated by the Company to be payable as a result thereof
(after taking into account any available tax credits or deductions and any tax sharing arrangements) and (iii) amounts required to be applied to the repayment of any Debt secured by a Lien on
the asset subject to such Asset Sale (other than the Loans); and 

    (b) with
respect to any issuance of equity securities, the aggregate cash proceeds received by the Company or any Subsidiary pursuant to such issuance, net of the
direct costs relating to such issuance (including sales and underwriter's commission. 

    Non-Use Fee Rate—see the Pricing Schedule. 

    Note—see Section 3.1. 

    Operating Lease means any lease of (or other agreement conveying the right to use) any real or personal property by the Company or any
Subsidiary, as lessee, other than any Capital Lease. 

    PBGC means the Pension Benefit Guaranty Corporation and any entity succeeding to any or all of its functions under ERISA. 

    Pension Plan means a defined-benefit "pension plan", as such term is defined in Section 3(2) of ERISA, which is subject to Title
IV of ERISA (other than a Multiemployer Pension Plan), and to which the Company or any member of the Controlled Group may have any liability, including any liability by
reason of having been a substantial employer within the meaning of Section 4063 of ERISA at any time during the preceding five years, or by reason of being deemed to be a contributing sponsor
under Section 4069 of ERISA. 

    Person means any natural person, corporation, partnership, trust, limited liability company, association, governmental authority or
unit, or any other entity, whether acting in an individual, fiduciary or other capacity. 

7

    Prime Rate means, for any day, the rate of interest in effect for such day as publicly announced from time to time by LaSalle as its
prime rate (whether or not such rate is actually charged by LaSalle). Any change in the Prime Rate announced by LaSalle shall take effect at the opening of business on the day specified in the public
announcement of such change. 

    Pro Rata Share means, with respect to any Bank, the percentage specified opposite such Bank's name on Schedule 2.1 hereto, as
adjusted from time to time in accordance with the terms hereof. 

    RCRA—see Section 9.15. 

    Regulation D means Regulation D of the FRB. 

    Regulation U means Regulation U of the FRB. 

    Release has the meaning specified in CERCLA and the term "Disposal" (or
"Disposed") has the meaning specified in RCRA; provided that in the event either CERCLA or RCRA is
amended so as to broaden the meaning of any term defined thereby, such broader meaning shall apply as of the effective date of such amendment; and provided,
further, that to the extent that the laws of a state wherein any affected property lies establish a meaning for "Release" or
"Disposal" which is broader than is specified in either CERCLA or RCRA, such broader meaning shall apply. 

    Required Banks means Banks having Pro Rata Shares aggregating 60% or more; provided,
however, that if there are only two Banks party to this Agreement, then the Required Banks shall be defined as Banks having Pro Rata Shares aggregating 100%. 

    Revolving Commitment Amount means $30,000,000.00, as reduced from time to time pursuant to  Section 6.1. 

    Revolving Loan—see Section 2.1.1. 

    Revolving Outstandings means, at any time, the sum of (a) the aggregate principal amount of all outstanding Revolving Loans,
plus (b) the Stated Amount of all Letters of Credit. 

    SEC means the Securities and Exchange Commission or any other governmental authority succeeding to any of the principal functions
thereof. 

    Security Agreement means a security agreement substantially in the form of  Exhibit C. 

    Stated Amount means, with respect to any Letter of Credit at any date of determination, (a) the maximum aggregate amount
available for drawing thereunder under any and all circumstances plus (b) the aggregate amount of all unreimbursed payments and disbursements under such Letter of Credit. 

    Subordinated Debt means any unsecured Debt of the Company which has subordination terms, covenants, pricing and other terms which have
been approved in writing by the Required Banks. 

    Subsidiary means, with respect to any Person, a corporation, partnership, limited liability company or other entity of which such
Person and/or its other Subsidiaries own, directly or indirectly, such number of outstanding shares or other ownership interests as have more than 50% of the ordinary voting power for the election of
directors or other managers of such corporation, partnership, limited liability company or other entity. Unless the context otherwise requires, each reference to Subsidiaries herein shall be a
reference to Subsidiaries of the Company. 

    Suretyship Liability means any agreement, undertaking or arrangement by which any Person guarantees, endorses or otherwise becomes or
is contingently liable upon (by direct or indirect agreement, contingent or otherwise, to provide funds for payment, to supply funds to or otherwise to invest in a debtor, or otherwise to assure a
creditor against loss) any indebtedness, obligation or other 

8

liability of any other Person (other than by endorsements of instruments in the course of collection), or guarantees the payment of dividends or other distributions upon the shares of any other
Person. The amount of any Person's obligation in respect of any Suretyship Liability shall (subject to any limitation set forth therein) be deemed to be the principal amount of the debt, obligation or
other liability supported thereby. 

    Termination Date means the earlier to occur of (a) April 1, 2003 or (b) such other date on which the Commitments
terminate pursuant to Section 6 or 12. 

    Total Debt means all Debt of the Company and its Subsidiaries, determined on a consolidated basis, excluding (i) contingent
obligations in respect of Suretyship Liabilities (except to the extent constituting Suretyship Liabilities in respect of Debt of a Person other than the Company or any Subsidiary), (ii) Hedging
Obligations and (iii) Debt of the Company to Subsidiaries and Debt of Subsidiaries to the Company or to other Subsidiaries. 

    Total Debt to EBITDA Ratio means, as of the last day of any Fiscal Quarter, the ratio of (i) Total Debt as of such day to
(ii) EBITDA for the Computation Period ending on such day. 

    Type of Loan or Borrowing—see Section 2.2.1. The types of Loans or
borrowings under this Agreement are as follows: Base Rate Loans or borrowings and Eurodollar Loans or borrowings. 

    Unmatured Event of Default means any event that, if it continues uncured, will, with lapse of time or notice or both, constitute an
Event of Default. 

    Wholly-Owned Subsidiary means, as to any Person, another Person all of the shares of capital stock or other ownership interests of
which (except directors' qualifying shares) are at the time directly or indirectly owned by such Person and/or another Wholly-Owned Subsidiary of such Person. 

    1.2  Other Interpretive Provisions.  (a) The meanings of defined terms are equally applicable to
the singular and plural forms of the defined terms. 

    (b) Section, Schedule and  Exhibit references are to this Agreement unless otherwise specified. 

    (c) The
term "including" is not limiting and means "including without limitation." 

    (d) In
the computation of periods of time from a specified date to a later specified date, the word "from" means "from and including"; the words "to" and "until" each
mean "to but excluding", and the word "through" means "to and including." 

    (e) Unless
otherwise expressly provided herein, (i) references to agreements (including this Agreement) and other contractual instruments shall be deemed to
include all subsequent amendments and other modifications thereto, but only to the extent such amendments and other modifications are not prohibited by the terms of any Loan Document, and
(ii) references to any statute or regulation shall be construed as including all statutory and regulatory provisions amending, replacing, supplementing or interpreting such statute or
regulation. 

    (f)  This
Agreement and the other Loan Documents may use several different limitations, tests or measurements to regulate the same or similar matters. All such
limitations, tests and measurements are cumulative and each shall be performed in accordance with its terms. 

    (g) This
Agreement and the other Loan Documents are the result of negotiations among and have been reviewed by counsel to the Agent, the Company, the Banks and the
other parties thereto and are the products of all parties. Accordingly, they shall not be construed against the Agent or the Banks merely because of the Agent's or Banks' involvement in their
preparation. 

9

SECTION 2

COMMITMENTS OF THE BANKS; BORROWING, CONVERSION AND

LETTER OF CREDIT PROCEDURES.  

    2.1  Commitments.  On and subject to the terms and conditions of this Agreement, each of the Banks,
severally and for itself alone, agrees to make loans to, and to issue or participate in letters of credit for the account of, the Company as follows: 

    2.1.1  Revolving Loan Commitment.  Each Bank will make loans on a revolving basis
("Revolving Loans") from time to time until the Termination Date in such Bank's Pro Rata Share of such aggregate amounts as the Company may request from
all Banks; provided that the Revolving Outstandings will not at any time exceed the lesser of (x) the Revolving Commitment Amount and
(y) the Borrowing Base. 

    2.1.2  L/C Commitment.  (a) The Issuing Bank will issue standby letters of credit, in each case
containing such terms and conditions as are permitted by this Agreement and are reasonably satisfactory to the Issuing Bank (each a "Letter of Credit"),
at the request of and for the account of the Company from time to time before the date which is 30 days prior to the Termination Date and (b) as more fully set forth in  Section 2.3.2,
each Bank agrees to purchase a participation in each such Letter of Credit;  provided that (i) the aggregate Stated Amount of all Letters of Credit shall not at any time exceed $500,000.00 and (ii)
 the Revolving
Outstandings will not at any time exceed the lesser of (x) the Revolving Commitment Amount and (y) the Borrowing Base. 

    2.2  Loan Procedures.  

    2.2.1  Various Types of Loans.  Each Revolving Loan shall be divided into tranches which are, either a
Base Rate Loan or a Eurodollar Loan (each a "type" of Loan), as the Company shall specify in the related notice of borrowing or conversion pursuant to  Section
 2.2.2 or 2.2.3. Eurodollar Loans having the same Interest Period are sometimes called a
"Group" or collectively "Groups". Base Rate Loans and Eurodollar Loans may be outstanding at the same
time, provided that not more than four (4) different Groups of Eurodollar Loans shall be outstanding at any one time. All borrowings, conversions
and repayments of Revolving Loans shall be effected so that each Bank will have a pro rata share (according to its Pro Rata Share) of all types and Groups of Loans. 

    2.2.2  Borrowing Procedures.  The Company shall give written notice or telephonic notice (followed
immediately by written confirmation thereof) to the Agent of each proposed borrowing not later than (a) in the case of a Base Rate borrowing, 11:00 A.M., Chicago time, on the proposed
date of such borrowing, and (b) in the case of a Eurodollar borrowing, 11:00 A.M., Chicago time, at least three Business Days prior to the proposed date of such borrowing. Each such
notice shall be effective upon receipt by the Agent, shall be irrevocable, and shall specify the date, amount and type of borrowing and, in the case of a Eurodollar borrowing, the initial Interest
Period therefor. Promptly upon receipt of such notice, the Agent shall advise each Bank thereof. Not later than 1:00 P.M., Chicago time, on the date of a proposed borrowing, each Bank shall
provide the Agent at the office specified by the Agent with immediately available funds covering such Bank's Pro Rata Share of such borrowing and, so long as the Agent has not received written notice
that the conditions precedent set forth in Section 11 with respect to such borrowing have not been satisfied, the Agent shall pay over the funds
received by the Agent to the Company on the requested borrowing date. Each borrowing shall be on a Business Day. Each Base Rate borrowing shall be in an aggregate amount of at least $100,000.00 and an
integral multiple of $25,000.00, and each Eurodollar borrowing shall be in an aggregate amount of at least $500,000.00 and an integral multiple of at least $100,000.00. 

10

    2.2.3  Conversion and Continuation Procedures.  

    (a) Subject
to Section 2.2.1, the Company may, upon irrevocable written notice to the Agent in accordance with  clause (b) below: 

     (i) elect,
as of any Business Day, to convert any Loans (or, for conversion into Eurodollar Loans, any part thereof in an aggregate amount not less than $100,000.00 or
a higher integral multiple of $100,000.00) into Loans of the other type; or 

    (ii) elect,
as of the last day of the applicable Interest Period, to continue any Eurodollar Loans having Interest Periods expiring on such day (or any part thereof in
an aggregate amount not less than $100,000.00 or a higher integral multiple of $100,000.00) for a new Interest Period; 

provided that after giving effect to any prepayment, conversion or continuation, the aggregate principal amount of each Group of Eurodollar Loans shall
be at least $100,000.00 and an integral multiple of $100,000.00. 

    (b) The
Company shall give written or telephonic (followed immediately by written confirmation thereof) notice to the Agent of each proposed conversion or continuation
not later than (i) in the case of conversion into Base Rate Loans, 11:00 A.M., Chicago time, on the proposed date of such conversion and (ii) in the case of conversion into or
continuation of Eurodollar Loans, 11:00 A.M., Chicago time, at least three Business Days prior to the proposed date of such conversion or continuation, specifying in each case: 

     (i) the
proposed date of conversion or continuation; 

    (ii) the
aggregate amount of Loans to be converted or continued; 

    (iii) the
type of Loans resulting from the proposed conversion or continuation; and 

    (iv) in
the case of conversion into, or continuation of, Eurodollar Loans, the duration of the requested Interest Period therefor. 

    (c) If
upon the expiration of any Interest Period applicable to Eurodollar Loans, the Company has failed to select timely a new Interest Period to be applicable to such
Eurodollar Loans, the Company shall be deemed to have elected to convert such Eurodollar Loans into Base Rate Loans effective on the last day of such Interest Period. 

    (d) The
Agent will promptly notify each Bank of its receipt of a notice of conversion or continuation pursuant to this  Section 2.2.3 or, if no timely notice is provided by the Company, of the details of
any automatic conversion. 

    (e) Any
conversion of a Eurodollar Loan on a day other than the last day of an Interest Period therefor shall be subject to  Section 8.4. 

    2.3  Letter of Credit Procedures.  

    2.3.1  L/C Applications.  The Company shall give notice to the Agent and the Issuing Bank of the proposed
issuance of each Letter of Credit on a Business Day which is at least three Business Days (or such lesser number of days as the Agent and the Issuing Bank shall agree in any particular instance in
their sole discretion) prior to the proposed date of issuance of such Letter of Credit. Each such notice shall be accompanied by an L/C Application, duly executed by the Company and in all respects
satisfactory to the Agent and the Issuing Bank, together with such other documentation as the Agent or the Issuing Bank may request in support thereof, it being understood that each L/C Application
shall specify, among other things, the date on which the proposed Letter of Credit is to be issued, the expiration date of such Letter of Credit (which shall not be later than the earlier to occur of
(x) one year after the date of issuance thereof and 

11

(y) thirty days prior to the scheduled Termination Date) and whether such Letter of Credit is to be transferable in whole or in part. So long as the Issuing Bank has not received written notice
that the conditions precedent set forth in Section 11 with respect to the issuance of such Letter of Credit have not been satisfied, the Issuing
Bank shall issue such Letter of Credit on the requested issuance date. The Issuing Bank shall promptly advise the Agent of the issuance of each Letter of Credit and of any amendment thereto, extension
thereof or event or circumstance changing the amount available for drawing thereunder. In the event of any inconsistency between the terms of any L/C Application or the Master Letter of Credit
Agreement, on the one hand, and the terms of this Agreement, on the other hand, the terms of this Agreement shall control. 

    2.3.2  Participations in Letters of Credit.  Concurrently with the issuance of each Letter of Credit, the
Issuing Bank shall be deemed to have sold and transferred to each other Bank, and each other Bank shall be deemed irrevocably and unconditionally to have purchased and received from the Issuing Bank,
without recourse or warranty, an undivided interest and participation, to the extent of such other Bank's Pro Rata Share, in such Letter of Credit and the Company's reimbursement obligations with
respect thereto. For the purposes of this Agreement, the unparticipated portion of each Letter of Credit shall be deemed to be the Issuing Bank's "participation" therein. The Issuing Bank hereby
agrees, upon request of the Agent or any Bank, to deliver to the Agent or such Bank a list of all outstanding Letters of Credit issued by the Issuing Bank, together with such information related
thereto as the Agent or such Bank may reasonably request. 

    2.3.3  Reimbursement Obligations.  The Company hereby unconditionally and irrevocably agrees to reimburse
the Issuing Bank for each payment or disbursement made by the Issuing Bank under any
Letter of Credit honoring any demand for payment made by the beneficiary thereunder, in each case on the date that such payment or disbursement is made. Any amount not reimbursed on the date of such
payment or disbursement shall bear interest from the date of such payment or disbursement to the date that the Issuing Bank is reimbursed by the Company therefor, payable on demand, at a rate per
annum equal to the Base Rate from time to time in effect plus the Base Rate Margin from time to time in effect  plus, beginning on the third Business Day
after receipt of notice from the Issuing Bank of such payment or disbursement, 2% per annum. The Issuing Bank
shall notify the Company and the Agent whenever any demand for payment is made under any Letter of Credit by the beneficiary thereunder; provided that
the failure of the Issuing Bank to so notify the Company shall not affect the rights of the Issuing Bank or the Banks in any manner whatsoever. 

    2.3.4  Limitation on Obligations of Issuing Bank.  In determining whether to pay under any Letter of
Credit, the Issuing Bank shall not have any obligation to the Company or any Bank other than to confirm that any documents required to be delivered under such Letter of Credit appear to have been
delivered and appear to comply on their face with the requirements of such Letter of Credit. Any action taken or omitted to be taken by the Issuing Bank under or in connection with any Letter of
Credit, if taken or omitted in the absence of gross negligence and willful misconduct, shall not impose upon the Issuing Bank any liability to the Company or any Bank and shall not reduce or impair
the Company's reimbursement obligations set forth in Section 2.3.3 or the obligations of the Banks pursuant to  Section 2.3.5. 

    2.3.5  Funding by Banks to Issuing Bank.  If the Issuing Bank makes any payment or disbursement under any
Letter of Credit and the Company has not reimbursed the Issuing Bank in full for such payment or disbursement by 11:00 A.M., Chicago time, on the date of such payment or disbursement, or if any
reimbursement received by the Issuing Bank from the Company is or must be returned or rescinded upon or during any bankruptcy or reorganization of the Company or otherwise, each other Bank shall be
obligated to pay to the Agent for the account of the Issuing Bank, in full or partial payment of the purchase price of its participation in such Letter of Credit, 

12

its Pro Rata Share of such payment or disbursement (but no such payment shall diminish the obligations of the Company under Section 2.3.3), and,
upon notice from the Issuing Bank, the Agent shall promptly notify each other Bank thereof. Each other Bank irrevocably and unconditionally agrees to so pay to the Agent in immediately available funds
for the Issuing Bank's account the amount of such other Bank's Percentage of such payment or disbursement. If and to the extent any Bank shall not have made such amount available to the Agent by
2:00 P.M., Chicago time, on the Business Day on which such Bank receives notice from the Agent of such payment or disbursement (it being understood that any such notice received after noon,
Chicago time, on any Business Day shall be deemed to have been received on the next following Business Day), such Bank agrees to pay interest on such amount to the Agent for the Issuing Bank's account
forthwith on demand, for each day from the date such amount was to have been delivered to the Agent to the date such amount is paid, at a rate per annum
equal to (a) for the first three days after demand, the Federal Funds Rate from time to time in effect and (b) thereafter, the Base Rate from time to time in effect. Any Bank's failure
to make available to the Agent its Pro Rata Share of any such payment or disbursement shall not relieve any other Bank of its obligation hereunder to make available to the Agent such other Bank's Pro
Rata Share of such payment, but no Bank shall be responsible for the failure of any other Bank to make available to the Agent such other Bank's Pro Rata Share of any such payment or disbursement. 

    2.4  Commitments Several.  The failure of any Bank to make a requested Loan on any date shall not relieve
any other Bank of its obligation (if any) to make a Loan on such date, but no Bank shall be responsible for the failure of any other Bank to make any Loan to be made by such other Bank. 

    2.5  Certain Conditions.  Notwithstanding any other provision of this Agreement, no Bank shall have an
obligation to make any Loan, or to permit the continuation of or any conversion into any Eurodollar Loan, and the Issuing Bank shall not have any obligation to issue any Letter of Credit, if an Event
of Default or Unmatured Event of Default exists. 

SECTION 3

NOTES EVIDENCING LOANS.  

    3.1  Notes.  The Loans of each Bank shall be evidenced by a promissory note (each a
"Note") substantially in the form set forth in Exhibit A, with appropriate insertions, payable to
the order of such Bank in a face principal amount equal to the sum of such Bank's Pro Rata Share of the Revolving Commitment Amount in full on the Termination Date. 

    3.2  Recordkeeping.  Each Bank shall record in its records, or at its option on the schedule attached to
its Note, the date and amount of each Loan made by such Bank, each repayment or conversion thereof and, in the case of each Eurodollar Loan, the dates on which each Interest Period for such Loan shall
begin and end. The aggregate unpaid principal amount so recorded shall be rebuttable presumptive evidence of the principal amount owing and unpaid on such Note. The failure to so record any such
amount or any error in so recording any such amount shall not, however, limit or otherwise affect the obligations of the Company hereunder or under any Note to repay the principal amount of the Loans
evidenced by such Note together with all interest accruing thereon. 

13

SECTION 4

INTEREST.  

    4.1  Interest Rates.  The Company promises to pay interest on the unpaid principal amount of each Loan
for the period commencing on the date of such Loan until such Loan is paid in full as follows: 

    (a) at
all times while such Loan is a Base Rate Loan, at a rate per annum equal to the sum of the Base Rate from time to time in effect plus the Base Rate Margin from
time to time in effect; and 

    (b) at
all times while such Loan is a Eurodollar Loan, at a rate per annum equal to the sum of the Eurodollar Rate (Reserve Adjusted) applicable to each Interest Period
for such Loan plus the Eurodollar Margin from time to time in effect; 

provided that at any time an Event of Default exists, if requested by the Required Banks, the interest rate applicable to each Loan shall be increased
by 2% per annum. 

    4.2  Interest Payment Dates.  Accrued interest on each Base Rate Loan shall be payable in arrears on the
last day of each calendar month and at maturity. Accrued interest on each Eurodollar Loan shall be payable on the last day of each Interest Period relating to such Loan (and, in the case of a
Eurodollar Loan with a six-month Interest Period, on the three-month anniversary of the first day of such Interest Period) and at maturity. After maturity, accrued interest on all Loans
shall be payable on demand. 

    4.3  Setting and Notice of Eurodollar Rates.  The applicable Eurodollar Rate for each Interest Period
shall be determined by the Agent, and notice thereof shall be given by the Agent promptly to the Company and each Bank. Each determination of the applicable Eurodollar Rate by the Agent shall be
conclusive and binding upon the parties hereto, in the absence of demonstrable error. The Agent shall, upon written request of the Company or any Bank, deliver to the Company or such Bank a statement
showing the computations used by the Agent in determining any applicable Eurodollar Rate hereunder. 

    4.4  Computation of Interest.  Interest shall be computed for the actual number of days elapsed on the
basis of a year of 360 days. The applicable interest rate for each Base Rate Loan shall change simultaneously with each change in the Base Rate. 

SECTION 5

FEES.  

    5.1  Non-Use Fee.  The Company agrees to pay to the Agent for the account of each Bank a
non-use fee, for the period from the Closing Date to the Termination Date, at the Non-Use Fee Rate in effect from time to time of such Bank's Pro Rata Share (as adjusted from
time to time) of the unused amount of the Revolving Commitment Amount on each day. For purposes of calculating usage under this Section, the Revolving Commitment Amount shall be deemed used to the
extent of the aggregate principal amount of all outstanding Revolving Loans plus the Stated Amount of all Letters of Credit. Such non-use fee shall be payable in arrears on the last day of
each calendar quarter and on the Termination Date for any period then ending for which such non-use fee shall not have previously been paid. The non-use fee shall be computed
for the actual number of days elapsed on the basis of a year of 360 days. 

14

    5.2  Letter of Credit Fees.   

    (a) The
Company agrees to pay to the Agent for the account of each Bank a letter of credit fee for each Letter of Credit equal to the LC Fee Rate in effect from time to
time of such Bank's Pro Rata Share (as adjusted from time to time) of the undrawn amount of such Letter of Credit (computed for the actual number of days elapsed on the basis of a year of
360 days) as of each day; provided that, if requested by the Required Banks, the rate applicable to each Letter of Credit shall be increased by
2% per annum at any time that an Event of Default exists. Such letter of credit fee shall be payable in arrears on the last day of each calendar quarter and on the Termination Date for the period from
the date of the issuance of each Letter of Credit (or the last day on which the letter of credit fee was paid with respect thereto) to the date such payment is due or, if earlier, the date on which
such Letter of Credit expired or was terminated. 

    (b) In
addition, with respect to each Letter of Credit, the Company agrees to pay to the Issuing Bank, for its own account, (i) such fees and expenses as the
Issuing Bank customarily requires in connection with the issuance, negotiation, processing and/or administration of letters of credit in similar situations and (ii) a letter of credit fronting
fee in the amount and at the times agreed to by the Company and the Issuing Bank. 

    5.3  Upfront Fees.  The Company agrees to pay to the Agent for the account of each Bank on the Closing
Date an upfront fee in the amount previously agreed to between the Company and the Agent (and the Agent agrees to promptly forward to each Bank a portion of such upfront fee in the amount previously
agreed to between the Agent and such Bank). 

    5.4  Agent's Fees.  The Company agrees to pay to the Agent such agent's fees as are mutually agreed to
from time to time by the Company and the Agent. 

SECTION 6

REDUCTION OR TERMINATION OF THE

REVOLVING COMMITMENT AMOUNT; PREPAYMENTS.  

    6.1  Reduction or Termination of the Revolving Commitment Amount.  

    6.1.1  Voluntary Reduction or Termination of the Revolving Commitment Amount.  The Company may from time
to time on at least three Business Days' prior written notice received by the Agent (which shall promptly advise each Bank thereof) permanently reduce the Revolving Commitment Amount to an amount not
less than the Revolving Outstandings. Any such reduction shall be in an amount not less than $500,000.00 or a higher integral multiple of $100,000.00. Concurrently with any reduction of the Revolving
Commitment Amount to zero, the Company shall pay all interest on the Revolving Loans, all non-use fees and all letter of credit fees and shall Cash Collateralize in full all obligations
arising with respect to the Letters of Credit. 

    6.1.2  Mandatory Reductions of Revolving Commitment Amount.  The Revolving Commitment Amount shall be
permanently reduced by: 

    (a) $1,000,000.00
on the last day of each Fiscal Quarter, commencing September 30, 2000; and 

    (b) an
amount (if any) equal to the Net Cash Proceeds payable pursuant to a Mandatory Prepayment Event. 

    6.1.3  All Reductions of the Revolving Commitment Amount.  All reductions of the Revolving Commitment
Amount shall reduce the Commitments pro rata among the Banks according to their respective Pro Rata Shares. 

15

    6.2  Prepayments.  

    6.2.1  Voluntary Prepayments.  The Company may from time to time prepay the Loans in whole or in part;  provided that the Company shall give the
Agent (which shall promptly advise each Bank) notice thereof not later than 11:00 A.M., Chicago time, on
the day of such prepayment (which shall be a Business Day), specifying the Loans to be prepaid and the date and amount of prepayment. Any such partial prepayment shall be in an amount equal to
$100,000.00 or a higher integral multiple of $25,000.00. 

     6.2.2  Mandatory Prepayments.  

    (a) The
Company shall make a prepayment of the Revolving Loans upon the occurrence of any of the following (each a "Mandatory Prepayment
Event") at the following times and in the following amounts (such applicable amounts being referred to as "Designated
Proceeds"): 

     (i) Concurrently
with the receipt by the Company or any Subsidiary of any Net Cash Proceeds from any Asset Sale, in an amount equal to 90% of such Net Cash Proceeds. 

    (ii) Concurrently
with the receipt by the Company or any Subsidiary of any Net Cash Proceeds from any issuance of equity securities of the Company or any Subsidiary
(excluding (x) any issuance of shares of capital stock pursuant to any employee or director stock option program, benefit plan or compensation program and (y) any issuance by a
Subsidiary to the Company or another Subsidiary), in an amount equal to 25% of such Net Cash Proceeds. 

    (b) If
on any day the Revolving Outstandings exceed the Borrowing Base, the Company shall immediately prepay Revolving Loans and/or Cash Collateralize the outstanding
Letters of Credit, or do a combination of the foregoing, in an amount sufficient to eliminate such excess. 

    (c) If
on any day on which the Revolving Commitment Amount is reduced pursuant to Section 6.1.2 the Revolving
Outstandings exceed the Revolving Commitment Amount, the Company shall immediately prepay Revolving Loans or Cash Collateralize the outstanding Letters of Credit, or do a combination of the foregoing,
in an amount sufficient to eliminate such excess. 

    6.3  All Prepayments.  Each voluntary partial prepayment shall be in a principal amount of $100,000.00 or
a higher integral multiple of $25,000.00. Any partial prepayment of a Group of Eurodollar Loans shall be subject to the proviso to  Section 2.2.3(a). Any prepayment of a Eurodollar Loan on a day
other than the last day of an Interest Period therefor shall include interest on
the principal amount being repaid and shall be subject to Section 8.4. 

SECTION 7

MAKING AND PRORATION OF PAYMENTS; SETOFF; TAXES.  

    7.1  Making of Payments.  All payments of principal of or interest on the Notes, and of all fees, shall
be made by the Company to the Agent in immediately available funds at the office specified by the Agent not later than 1:00 p.m., Chicago time, on the date due; and funds received after that
hour shall be deemed to have been received by the Agent on the following Business Day. The Agent shall promptly remit to each Bank its share of all such payments received in collected funds by the
Agent for the
account of such Bank. All payments under Section 8.1 shall be made by the Company directly to the Bank entitled thereto. 

    7.2  Application of Certain Payments.  Each payment of principal shall be applied to such Loans as the
Company shall direct by notice to be received by the Agent on or before the date of such payment or, in the absence of such notice, as the Agent shall determine in its discretion. Concurrently with
each remittance to any Bank of its share of any such payment, the Agent shall advise such Bank as to the application of such payment. 

16

    7.3  Due Date Extension.  If any payment of principal or interest with respect to any of the Loans, or of
any fees, falls due on a day which is not a Business Day, then such due date shall be extended to the immediately following Business Day (unless, in the case of a Eurodollar Loan, such immediately
following Business Day is the first Business Day of a calendar month, in which case such due date shall be the immediately preceding Business Day) and, in the case of principal, additional interest
shall accrue and be payable for the period of any such extension. 

    7.4  Setoff.  The Company agrees that the Agent and each Bank have all rights of set-off and
bankers' lien provided by applicable law, and in addition thereto, the Company agrees that at any time any Event of Default exists, the Agent and each Bank may apply to the payment of any obligations
of the Company hereunder, whether or not then due, any and all balances, credits, deposits, accounts or moneys of the Company then or thereafter with the Agent or such Bank. 

    7.5  Proration of Payments.  If any Bank shall obtain any payment or other recovery (whether voluntary,
involuntary, by application of offset or otherwise, but excluding any payment pursuant to Section 8.7 or  14.9 and payments of interest on any Affected
Loan) on account of principal of or interest on any Loan (or on account of its participation in any Letter
of Credit) in excess of its pro rata share of payments and other recoveries obtained by all Banks on account of principal of and interest on the Loans (or such participation) then held by them, such
Bank shall purchase from the other Banks such participations in the Loans (or sub-participations in Letters of Credit) held by them as shall be necessary to cause such purchasing Bank to
share the excess payment or other recovery ratably with each of them; provided that if all or any portion of the excess payment or other recovery is
thereafter recovered from such purchasing Bank, the purchase shall be rescinded and the purchase price restored to the extent of such recovery. 

    7.6  Taxes.  All payments of principal of, and interest on, the Loans and all other amounts payable
hereunder shall be made free and clear of and without deduction for any present or future income, excise, stamp or franchise taxes and other taxes, fees, duties, withholdings or other charges of any
nature whatsoever imposed by any taxing authority, excluding franchise taxes and taxes imposed on or measured by any Bank's net income or receipts (all non-excluded items being called
"Taxes"). If any withholding or deduction from any payment to be made by the Company hereunder is required in respect of any Taxes pursuant to any
applicable law, rule or regulation, then the Company will: 

    (a) pay
directly to the relevant authority the full amount required to be so withheld or deducted; 

    (b) promptly
forward to the Agent an official receipt or other documentation satisfactory to the Agent evidencing such payment to such authority; and 

    (c) pay
to the Agent for the account of the Banks such additional amount or amounts as is necessary to ensure that the net amount actually received by each Bank will
equal the full amount such Bank would have received had no such withholding or deduction been required. 

    Moreover,
if any Taxes are directly asserted against the Agent or any Bank with respect to any payment received by the Agent or such Bank hereunder, the Agent or such Bank may pay
such Taxes and the Company will promptly pay such additional amounts (including any penalty, interest or expense) as is necessary in order that the net amount received by such Person after the payment
of such Taxes (including any Taxes on such additional amount) shall equal the amount such Person would have received had such Taxes not been asserted. 

    If
the Company fails to pay any Taxes when due to the appropriate taxing authority or fails to remit to the Agent, for the account of the respective Banks, the required receipts or
other required documentary evidence, the Company shall indemnify the Banks for any incremental Taxes, interest or penalties that may become payable by any Bank as a result of any such failure. Such
indemnity shall be payable upon demand by the Agent (which demand shall be accompanied by a statement setting forth 

17

the basis for such demand and a calculation of the amount thereof in reasonable detail). For purposes of this Section 7.6, a distribution
hereunder by the Agent or any Bank to or for the account of any Bank shall be deemed a payment by the Company. 

    Each
Bank that (a) is organized under the laws of a jurisdiction other than the United States of America and (b)(i) is a party hereto on the Closing Date or
(ii) becomes an assignee of an interest under this Agreement under Section 14.9.1 after the Closing Date (unless such Bank was already a
Bank hereunder immediately prior to such assignment) shall execute and deliver to the Company and the Agent one or more (as the Company or the Agent may reasonably request) United States Internal
Revenue Service Forms 4224 or Forms 1001 or such other forms or documents, appropriately completed, as may be applicable to establish that such Bank is exempt from withholding or deduction of Taxes.
The Company shall not be required to pay additional amounts to any Bank pursuant to this Section 7.6 to the extent that the obligation to pay
such additional amounts would not have arisen but for the failure of such Bank to comply with this paragraph. 

SECTION 8

INCREASED COSTS; SPECIAL PROVISIONS FOR EURODOLLAR LOANS.  

          8.1  Increased Costs.  

    (a) If,
after the date hereof, the adoption of, or any change in, any applicable law, rule or regulation, or any change in the interpretation or administration of any
applicable law, rule or regulation by any governmental authority, central bank or comparable agency charged with the interpretation or administration thereof, or compliance by any Bank (or any
Eurodollar Office of such Bank) with any request or directive (whether or not having the force of law) of any such authority, central bank or comparable agency 

     (i) shall
subject any Bank (or any Eurodollar Office of such Bank) to any tax, duty or other charge with respect to its Eurodollar Loans, its Note or its obligation to
make Eurodollar Loans, or shall change the basis of taxation of payments to any Bank of the principal of or interest on its Eurodollar Loans or any other amounts due under this Agreement in respect of
its Eurodollar Loans or its obligation to make Eurodollar Loans (except for changes in the rate of tax on the overall net income of such Bank or its Eurodollar Office imposed by the jurisdiction in
which such Bank's principal executive office or Eurodollar Office is located); 

    (ii) shall
impose, modify or deem applicable any reserve (including any reserve imposed by the FRB, but excluding any reserve included in the determination of interest
rates pursuant to Section 4), special deposit or similar requirement against assets of, deposits with or for the account of, or credit extended
by any Bank (or any Eurodollar Office of such Bank); or 

    (iii) shall
impose on any Bank (or its Eurodollar Office) any other condition affecting its Eurodollar Loans, its Note or its obligation to make Eurodollar Loans; 

and
the result of any of the foregoing is to increase the cost to (or to impose a cost on) such Bank (or any Eurodollar Office of such Bank) of making or maintaining any Eurodollar Loan, or to reduce
the amount of any sum received or receivable by such Bank (or its Eurodollar Office) under this Agreement or under its Note with respect thereto, then upon demand by such Bank (which demand shall be
accompanied by a statement setting forth the basis for such demand and a calculation of the amount thereof in reasonable detail, a copy of which shall be furnished to the Agent), the Company shall pay
directly to such Bank such additional amount as will compensate such Bank for such increased cost or such reduction. If any Bank fails to demand such payment within 60 days after it obtains
knowledge of such an event, such Bank shall, with respect to compensation payable pursuant to this Section, only be entitled to payment under this Section for 

18

costs incurred from and after the date 60 days prior to the date that such Bank makes its demand for payment. 

    (b) If
any Bank shall reasonably determine that any change in, the adoption or phase-in of, any applicable law, rule or regulation regarding capital
adequacy, 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 any Bank or any Person controlling such Bank with any request or directive regarding capital adequacy (whether or not having the force of law) of any such authority, central bank or
comparable agency, has or would have the effect of reducing the rate of return on such Bank's or such controlling Person's capital as a consequence of such Bank's obligations hereunder or under any
Letter of Credit to a level below that which such Bank or such controlling Person could have achieved but for such change, adoption, phase-in or compliance (taking into consideration such
Bank's or such controlling Person's policies with respect to capital adequacy) by an amount deemed by such Bank or such controlling Person to be material, then from time to time, upon demand by such
Bank (which demand shall be accompanied by a statement setting forth the basis for such demand and a calculation of the amount thereof in reasonable detail, a copy of which shall be furnished to the
Agent), the Company shall pay to such Bank such additional amount as will compensate such Bank or such controlling Person for such reduction. If any Bank fails to demand such payment within
60 days after it obtains knowledge of such an event, such Bank shall, with respect to compensation
payable pursuant to this Section, only be entitled to payment under this Section for costs incurred from and after the date 60 days prior to the date that such Bank makes its demand for
payment. 

    8.2  Basis for Determining Interest Rate Inadequate or Unfair.  If with respect to any Interest Period: 

    (a) deposits
in Dollars (in the applicable amounts) are not being offered to the Agent in the interbank eurodollar market for such Interest Period, or the Agent
otherwise reasonably determines (which determination shall be binding and conclusive on the Company) that by reason of circumstances affecting the interbank eurodollar market adequate and reasonable
means do not exist for ascertaining the applicable Eurodollar Rate; or 

    (b) any
Bank advises the Agent that the Eurodollar Rate (Reserve Adjusted) as determined by the Agent will not adequately and fairly reflect the cost to such Bank of
maintaining or funding Eurodollar Loans for such Interest Period (taking into account any amount to which such Banks may be entitled under  Section 8.1) or that the making or funding of Eurodollar
Loans has become impracticable as a result of an event occurring after the date of this
Agreement which in the opinion of such Bank materially affects such Loans; 

then the Agent shall promptly notify the other parties thereof and, so long as such circumstances shall continue, (i) no affected Bank shall be
under any obligation to make or convert into Eurodollar Loans and (ii) on the last day of the current Interest Period for each Eurodollar Loan, such Loan shall, unless then repaid in full,
automatically convert to a Base Rate Loan. 

    8.3  Changes in Law Rendering Eurodollar Loans Unlawful.  If any change in, or the adoption of any new,
law or regulation, or any change in the interpretation of any applicable law or regulation by any governmental or other regulatory body charged with the administration thereof, should make it (or in
the good faith judgment of any Bank cause a substantial question as to whether it is) unlawful for any Bank to make, maintain or fund Eurodollar Loans, then such Bank shall promptly notify each of the
other parties hereto and, so long as such circumstances shall continue, (a) such Bank shall have no obligation to make or convert into Eurodollar Loans (but shall make Base Rate Loans
concurrently with the making of or conversion into Eurodollar Loans by the Banks which are not so affected, in each case in an amount equal to the amount of Eurodollar Loans which would be made or
converted into by such Bank at such time in the absence of such circumstances) and (b) on the last day of the 

19

current Interest Period for each Eurodollar Loan of such Bank (or, in any event, on such earlier date as may be required by the relevant law, regulation or interpretation), such Eurodollar Loan shall,
unless then repaid in full, automatically convert to a Base Rate Loan. Each Base Rate Loan made by a Bank which, but for the circumstances described in the foregoing sentence, would be a Eurodollar
Loan (an "Affected Loan") shall remain outstanding for the same period as the Group of Eurodollar Loans of which such Affected Loan would be a part
absent such circumstances. 

    8.4  Funding Losses.  The Company hereby agrees that upon demand by any Bank (which demand shall be
accompanied by a statement setting forth the basis for the amount being claimed, a copy of which shall be furnished to the Agent), the Company will indemnify such Bank against any net loss or expense
which such Bank may sustain or incur (including any net loss or expense incurred by reason of the liquidation or reemployment of deposits or other funds acquired by such Bank to fund or maintain any
Eurodollar Loan), as reasonably determined by such Bank, as a result of (a) any payment, prepayment or conversion of any Eurodollar Loan of such Bank on a date other than the last day of an
Interest Period for such Loan (including any conversion pursuant to Section 8.3) or (b) any failure of the Company to borrow, convert or
continue any Loan on a date specified therefor in a notice of borrowing, conversion or continuation pursuant to this Agreement. For this purpose, all notices to the Agent pursuant to this Agreement
shall be deemed to be irrevocable. 

    8.5  Right of Banks to Fund through Other Offices.  Each Bank may, if it so elects, fulfill its
commitment as to any Eurodollar Loan by causing a foreign branch or Affiliate of such Bank to make such Loan; provided that in such event for the
purposes of this Agreement such Loan shall be deemed to have been made by such Bank and the obligation of the Company to repay such Loan shall nevertheless be to such Bank and shall be deemed held by
it, to the extent of such Loan, for the account of such branch or Affiliate. 

    8.6  Discretion of Banks as to Manner of Funding.  Notwithstanding any provision of this Agreement to the
contrary, each Bank shall be entitled to fund and maintain its funding of all or any part of its Loans in any manner it sees fit, it being understood, however, that for the purposes of this Agreement
all determinations hereunder shall be made as if such Bank had actually funded and maintained each Eurodollar Loan during each Interest Period for such Loan through the purchase of deposits having a
maturity corresponding to such Interest Period and bearing an interest rate equal to the Eurodollar Rate for such Interest Period. 

    
8.7  Mitigation of Circumstances; Replacement of Banks.  

    (a) Each
Bank shall promptly notify the Company and the Agent of any event of which it has knowledge which will result in, and will use reasonable commercial efforts
available to it (and not, in such Bank's sole judgment, otherwise disadvantageous to such Bank) to mitigate or avoid, (i) any obligation by the Company to pay any amount pursuant to  Section 7.6 or 8.1 or (ii) the occurrence of any circumstances described in  Section 8.2 or 8.3 (and,
if any Bank has given notice of any such event described in  clause (i) or (ii) above and thereafter such event ceases to exist, such Bank shall
promptly so
notify the Company and the Agent). Without limiting the foregoing, each Bank will designate a different funding office if such designation will avoid (or reduce the cost to the Company of) any event
described in clause (i) or (ii) of the preceding sentence and such designation will not, in such
Bank's sole judgment, be otherwise disadvantageous to such Bank. 

    (b) If
the Company becomes obligated to pay additional amounts to any Bank pursuant to Section 7.6 or  8.1, or any Bank gives notice of the occurrence of any
circumstances described in Section 8.2 or  8.3, the Company may designate another bank which is acceptable to the Agent and the Issuing Bank in their
reasonable discretion (such other bank being
called a "Replacement Bank") to purchase the Loans of such Bank and such Bank's rights hereunder, without recourse to or warranty by, or expense to,
such Bank, for a purchase price equal to the outstanding principal 

20

amount of the Loans payable to such Bank plus any accrued but unpaid interest on such Loans and all accrued but unpaid fees owed to such Bank and any other amounts payable to such Bank under this
Agreement, and to assume all the obligations of such Bank hereunder, and, upon such purchase and assumption (pursuant to an Assignment Agreement), such Bank shall no longer be a party hereto or have
any rights hereunder (other than rights with respect to indemnities and similar rights applicable to such Bank prior to the date of such purchase and assumption) and shall be relieved from all
obligations to the Company hereunder, and the Replacement Bank shall succeed to the rights and obligations of such Bank hereunder. 

    8.8  Conclusiveness of Statements; Survival of Provisions.  Determinations and statements of any Bank
pursuant to Section 8.1, 8.2, 8.3 or 8.4 shall be conclusive absent demonstrable error. Banks may
use reasonable averaging and attribution methods in determining compensation under Sections 8.1 and  8.4, and the provisions of such Sections shall
survive repayment of the Loans, cancellation of the Notes, expiration or termination of the Letters of
Credit and termination of this Agreement. 

SECTION 9

WARRANTIES.  

    To induce the Agent and the Banks to enter into this Agreement and to induce the Banks to make Loans and issue and participate in Letters of Credit hereunder,
the Company warrants to the Agent and the Banks that: 

    9.1  Organization.  The Company is a corporation validly existing and in good standing under the laws of
the State of Delaware; each Subsidiary is validly existing and in good standing under the laws of the jurisdiction of its organization; and each of the Company and each Subsidiary is duly qualified to
do business in each jurisdiction where, because of the nature of its activities or properties, such qualification is required, except for such jurisdictions where the failure to so qualify would not
have a Material Adverse Effect. 

    9.2  Authorization; No Conflict.  Each of the Company and each other Loan Party is duly authorized to
execute and deliver each Loan Document to which it is a party, the Company is duly authorized to borrow monies hereunder and each of the Company and each other Loan Party is duly authorized to perform
its obligations under each Loan Document to which it is a party. The execution, delivery and performance by the Company of this Agreement and by each of the Company and each other Loan Party of each
Loan Document to which it is a party, and the borrowings by the Company hereunder, do not and will not (a) require any consent or approval of any governmental agency or authority (other than
any consent or approval which has been obtained and is in full force and effect), (b) conflict with (i) any provision of law, (ii) the charter, by-laws or other
organizational documents of the Company or any other Loan Party or (iii) any agreement, indenture, instrument or other document, or any judgment, order or decree, which is binding upon the
Company or any other Loan Party or any of their respective properties or (c) require, or result in, the creation or imposition of any Lien on any asset of the Company, any Subsidiary or any
other Loan Party (other than Liens in favor of the Agent created pursuant to the Collateral Documents). 

    9.3  Validity and Binding Nature.  Each of this Agreement and each other Loan Document to which the
Company or any other Loan Party is a party is the legal, valid and binding obligation of such Person, enforceable against such Person in accordance with its terms, subject to bankruptcy, insolvency
and similar laws affecting the enforceability of creditors' rights generally and to general principles of equity. 

    9.4  Financial Condition.  The audited consolidated financial statements of the Company and its
Subsidiaries as at December 31, 1999 and the unaudited consolidated financial statements of the
Company and the Subsidiaries as at March 31, 2000, copies of each of which have been delivered to each Bank, were prepared in accordance with GAAP (subject, in the case of such unaudited 

21

statements, to the absence of footnotes and to normal year-end adjustments) and present fairly the consolidated financial condition of the Company and its Subsidiaries as at such dates and
the results of their operations for the periods then ended. 

    9.5  No Material Adverse Change.  Since December 31, 1999 there has been no material adverse
change in the financial condition, operations, assets, business, properties or prospects of the Company and its Subsidiaries taken as a whole. 

    9.6  Litigation and Contingent Liabilities.  No litigation (including derivative actions), arbitration
proceeding or governmental investigation or proceeding is pending or, to the Company's knowledge, threatened against the Company or any Subsidiary which might reasonably be expected to have a Material
Adverse Effect, except as set forth in Schedule 9.6. Other than any liability incident to such litigation or proceedings, neither the Company nor
any Subsidiary has any material contingent liabilities not listed on Schedule 9.6 or permitted by  Section 10.7. 

    9.7  Ownership of Properties; Liens.  Each of the Company and each Subsidiary owns good and, in the case
of real property, marketable title to all of its properties and assets, real and personal, tangible and intangible, of any nature whatsoever (including patents, trademarks, trade names, service marks
and copyrights), free and clear of all Liens, charges and claims (including infringement claims with respect to patents, trademarks, service marks, copyrights and the like) except as permitted by  Section
 10.8. 

    9.8  Subsidiaries.  As of the Closing Date, the Company has no Subsidiaries other than those listed on  Schedule 9.8. 

    9.9  Pension Plans.  During the five year period prior to the date of the execution and delivery of this
Agreement or the making of any Loan or the issuance of any Letter of Credit, neither the Company nor any member of its Controlled Group has maintained, established, sponsored or contributed to any
Pension Plan or Multiemployer Pension Plan. 

    9.10  Investment Company Act.  Neither the Company nor any Subsidiary is an "investment company" or a
company "controlled" by an "investment company", within the meaning of the Investment Company Act of 1940. 

    9.11  Public Utility Holding Company Act.  Neither the Company nor any Subsidiary 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", within the meaning of the Public Utility Holding Company
Act of 1935. 

    9.12  Regulation U.  The Company is not engaged principally, or as one of its important
activities, in the business of extending credit for the purpose of purchasing or carrying Margin Stock. 

    9.13  Taxes.  Each of the Company and each Subsidiary has filed all tax returns and reports required by
law to have been filed by it and has paid all taxes and governmental charges thereby shown to be owing, except any such taxes or charges which are being diligently contested in good faith by
appropriate proceedings and for which adequate reserves in accordance with GAAP shall have been set aside on its books. 

    9.14  Solvency, etc.  On the Closing Date, and immediately prior to and after giving effect to the
issuance of each Letter of Credit and each borrowing hereunder and the use of the proceeds thereof, (a) each of the Company's and each other Loan Party's assets will exceed its liabilities and
(b) each of the Company and each other Loan Party will be solvent, will be able to pay its debts as they mature, will own property with fair saleable value greater than the amount required to
pay its debts and will have capital sufficient to carry on its business as then constituted. 

22

    9.15  Environmental Matters.  

    (a)  No Violations.  Except as set forth on  Schedule 9.15, neither the Company nor any Subsidiary, nor any operator of the Company's or any
Subsidiary's properties, is in violation, or
alleged violation, of any judgment, decree, order, law, permit, license, rule or regulation pertaining to environmental matters, including those arising under the Resource Conservation and Recovery
Act ("RCRA"), the Comprehensive Environmental Response, Compensation and Liability Act of 1980
("CERCLA"), the
Superfund Amendments and Reauthorization Act of 1986 or any other Environmental Law which (i) in any single case, requires expenditures in any three-year period of $100,000.00 or
more by the Company and its Subsidiaries in penalties and/or for investigative, removal or remedial actions or (ii) individually or in the aggregate otherwise might reasonably be expected to
have a Material Adverse Effect. 

    (b)  Notices.  Except as set forth on  Schedule 9.15 and for matters arising after the Closing Date, in each case none of which could singly or in
the aggregate be expected to have a
Material Adverse Effect, neither the Company nor any Subsidiary has received notice from any third party, including any Federal, state or local governmental authority: (a) that any one of them
has been identified by the U.S. Environmental Protection Agency as a potentially responsible party under CERCLA with respect to a site listed on the National Priorities List, 40 C.F.R. Part 300
Appendix B; (b) that any hazardous waste, as defined by 42 U.S.C. §6903(5), any hazardous substance as defined by 42 U.S.C. §9601(14), any pollutant or
contaminant as defined by 42 U.S.C. §9601(33) or any toxic substance, oil or hazardous material or other chemical or substance regulated by any Environmental Law (all of the
foregoing, "Hazardous Substances") which any one of them has generated, transported or disposed of has been found at any site at which a Federal, state
or local agency or other third party has conducted a remedial investigation, removal or other response action pursuant to any Environmental Law; (c) that the Company or any Subsidiary must
conduct a remedial investigation, removal, response action or other activity pursuant to any Environmental Law; or (d) of any Environmental Claim. 

    (c)  Handling of Hazardous Substances.  Except as set forth on  Schedule 9.15, (i) no portion of the real property or other assets of the
Company or any Subsidiary has been used for the handling,
processing, storage or disposal of Hazardous Substances except in accordance in all material respects with applicable Environmental Laws; and no underground tank or other underground storage
receptacle for Hazardous Substances is located on such properties; (ii) in the course of any activities conducted by the Company, any Subsidiary or the operators of any real property of the
Company or any Subsidiary, no Hazardous Substances have been generated or are being used on such properties except in accordance in all material respects with applicable Environmental Laws;
(iii) there have been no Releases or threatened Releases of Hazardous Substances on, upon, into or from any real property or other assets of the Company or any Subsidiary, which Releases singly
or in the aggregate might reasonably be expected to have a material adverse effect on the value of such real property or assets; (iv) there have been no Releases on, upon, from or into any real
property in the vicinity of the real property or other assets of the Company or any Subsidiary which, through soil or groundwater contamination, may have come to be located on, and which might
reasonably be expected to have a material adverse effect on the value of, the real property or other assets of the Company or any Subsidiary; and (v) any Hazardous Substances generated by the
Company and its Subsidiaries have been transported offsite only by properly licensed carriers and delivered only to treatment or disposal facilities maintaining valid permits as required under
applicable Environmental Laws, which transporters and facilities have been and are operating in compliance in all material respects with such permits and applicable Environmental Laws. 

    9.16  Insurance.  Set forth on Schedule 9.16 is a
complete and accurate summary of the property and casualty insurance program of the Company and its Subsidiaries as of the Closing Date (including 

23

the names of all insurers, policy numbers, expiration dates, amounts and types of coverage, annual premiums, exclusions, deductibles, self-insured retention, and a description in
reasonable detail of any self-insurance program, retrospective rating plan, fronting arrangement or other risk assumption arrangement involving the Company or any Subsidiary). 

    9.17  Real Property.  Set forth on Schedule 9.17
is a complete and accurate list, as of the Closing Date, of the address of all real property owned or leased by the Company or any Subsidiary, together with, in the case of leased property, the name
and mailing address of the lessor of such property. 

    9.18  Information.  All information heretofore or contemporaneously herewith furnished in writing by the
Company or any other Loan Party to the Agent or any Bank for purposes of or in connection with this Agreement and the transactions contemplated hereby is, and all written information hereafter
furnished by or on behalf of the Company or any Subsidiary to the Agent or any Bank pursuant hereto or in connection herewith will be, true and accurate in every material respect on the date as of
which such information is dated or certified, and none of such information is or will be incomplete by omitting to state any material fact necessary to make such information not misleading in light of
the circumstances under which made (it being recognized by the Agent and the Banks that any projections and forecasts provided by the Company are based on good faith estimates and assumptions believed
by the Company to be reasonable as of the date of the applicable projections or assumptions and that actual results during the period or periods covered by any such projections and forecasts may
differ from projected or forecasted results). 

    9.19  Intellectual Property.  The Company and each Subsidiary owns and possesses or has a license or
other right to use all patents, patent rights, trademarks, trademark rights, trade names, trade name rights, service marks, service mark rights and copyrights as are necessary for the conduct of the
business of the Company and its Subsidiaries, without any infringement upon rights of others which could reasonably be expected to have a Material Adverse Effect. 

    9.20  Burdensome Obligations.  Neither the Company nor any Subsidiary is a party to any agreement or
contract or subject to any corporate or partnership restriction which might reasonably be expected to have a Material Adverse Effect. 

    9.21  Labor Matters.  Except as set forth on  Schedule 9.21, neither the Company nor any Subsidiary is subject
to any labor or collective bargaining agreement. There are no existing or
threatened strikes, lockouts or other labor disputes involving the Company or any Subsidiary that singly or in the aggregate could reasonably be expected to have a Material Adverse Effect. Hours
worked by and payment made to employees of the Company and its Subsidiaries are not in violation of the Fair Labor Standards Act or any other applicable law, rule or regulation dealing with such
matters. 

    9.22  No Default.  No Event of Default or Unmatured Event of Default exists or would result from the
incurring by the Company of any Debt hereunder or under any other Loan Document. 

SECTION 10

COVENANTS.  

    Until the expiration or termination of the Commitments and thereafter until all obligations of the Company hereunder and under the other Loan Documents are
paid in full and all Letters of Credit have been terminated, the Company agrees that, unless at any time the Required Banks shall otherwise expressly consent in writing, it will: 

    
10.1  Reports, Certificates and Other Information.  Furnish to the Agent and each Bank: 

    10.1.1  Annual Report.  Promptly when available and in any event within 90 days after the close of
each Fiscal Year: (a) a copy (which may be included in the 10K Reports described below) of the annual audit report of the Company and its Subsidiaries for such Fiscal Year, including 

24

therein consolidated balance sheets and statements of earnings and cash flows of the Company and its Subsidiaries as at the end of such Fiscal Year, certified without qualification by
PriceWaterhouseCoopers LLP or other independent auditors of recognized standing selected by the Company and reasonably acceptable to the Required Banks, together with (i) a written statement
from such accountants to the effect that in making the examination necessary for the signing of such annual audit report by such accountants, nothing came to their attention that caused them to
believe that the Company was not in compliance with any provision of Section 10.6, 10.7, 10.9 or  10.10 of this Agreement insofar as such provision
relates to accounting matters or, if something has come to their
attention that caused them to believe that the Company was not in compliance with any such provision, describing such non-compliance in reasonable detail and (ii) a comparison with
the budget for such Fiscal Year and a comparison with the previous Fiscal Year; and (b) consolidating balance sheets of the Company and its Subsidiaries as of the end of such Fiscal Year and a
consolidating statement of earnings for the Company and its Subsidiaries for such Fiscal Year, certified by a Designated Person. 

    10.1.2  Interim Reports.  (a) Promptly when available and in any event within 45 days after
the end of each Fiscal Quarter (except the last Fiscal Quarter of each Fiscal Year), a copy (which may be included in the 10Q Reports described below) of the consolidated and consolidating balance
sheets of the Company and its Subsidiaries as of the end of such Fiscal Quarter, together with consolidated and consolidating statements of earnings and cash flows for such Fiscal Quarter and for the
period beginning with the first day of such Fiscal Year and ending on the last day of such Fiscal Quarter, together with a comparison with the corresponding period of the previous Fiscal Year and a
comparison with the budget for such period of the current Fiscal Year, certified by a Designated Person; and (b) promptly when available and in any event within 30 days after the end of
each month (except the last month of each Fiscal Quarter), consolidated and consolidating balance sheets of the Company and its Subsidiaries as of the end of such month, together with consolidated and
consolidating statements of earnings and a consolidated statement of cash flows for such month and for the period beginning with the first day of such Fiscal Year and ending on the last day of such
month, together with the Company's Financial Summary, certified by a Designated Person. 

    10.1.3  Compliance Certificates.  Contemporaneously with the furnishing of a copy of each annual audit
report pursuant to Section 10.1.1 and each set of quarterly statements pursuant to  Section 10.1.2, a duly completed compliance certificate in the
form of Exhibit B, with
appropriate insertions, dated the date of such annual report or such quarterly statements and signed by a Designated Person, containing (i) a computation of each of the financial ratios and
restrictions set forth in Section 10.6 and to the effect that such officer has not become aware of any Event of Default or Unmatured Event of
Default that has occurred and is continuing or, if there is any such event, describing it and the steps, if any, being taken to cure it and (ii) a written statement of the Company's management
setting forth a discussion of the Company's financial condition, changes in financial condition and results of operations. 

    10.1.4  Reports to the SEC and to Shareholders.  Promptly upon the filing or sending thereof, copies of
all regular, periodic or special reports of the Company or any Subsidiary filed with the SEC including, without limitation, copies of the Company's 10K Report and 10Q Report (or, in either case, any
successor report) filed with the SEC; copies of all registration statements of the Company or any Subsidiary filed with the SEC (other than on Form S-8); and copies of all proxy
statements or other communications made to security holders generally. 

25

    10.1.5  Notice of Default, Litigation and ERISA Matters.  Promptly upon becoming aware of
any of the following, written notice describing the same and the steps being taken by the Company or the Subsidiary affected thereby with respect thereto: 

    (a) the
occurrence of an Event of Default or an Unmatured Event of Default; 

    (b) any
litigation, arbitration or governmental investigation or proceeding not previously disclosed by the Company to the Banks which has been instituted or, to the
knowledge of the Company, is threatened against the Company or any Subsidiary or to which any of the properties of any thereof is subject which might reasonably be expected to have a Material Adverse
Effect; 

    (c) any
cancellation or material change in any insurance maintained by the Company or any Subsidiary; or 

    (d) any
other event (including (i) any violation of any Environmental Law or the assertion of any Environmental Claim or (ii) the enactment or
effectiveness of any law, rule or regulation) which might reasonably be expected to have a Material Adverse Effect. 

    10.1.6  Borrowing Base Certificates.  Within 30 days of the end of each Fiscal Month, a Borrowing
Base Certificate dated as of the end of such month and executed by a Designated Person on behalf of the Company; provided that at any time an Event of
Default exists, the Agent may require the Company to deliver Borrowing Base Certificates more frequently. 

    10.1.7  Management Reports.  Promptly upon the request of the Agent or any Bank, copies of all detailed
financial and management reports submitted to the Company by independent auditors in connection with each annual or interim audit made by such auditors of the books of the Company. 

    10.1.8  Projections.  As soon as practicable, and in any event within 30 days prior to the
commencement of each Fiscal Year, financial projections for the Company and its Subsidiaries for such Fiscal Year
(including an operating budget and a cash flow budget) prepared in a manner consistent with the projections delivered by the Company to the Banks prior to the Closing Date or otherwise in a manner
reasonably satisfactory to the Agent, accompanied by a certificate of a Designated Person on behalf of the Company to the effect that (a) such projections were prepared by the Company in good
faith, (b) the Company has a reasonable basis for the assumptions contained in such projections and (c) such projections have been prepared in accordance with such assumptions, but
subject also to the understanding that such projections are not a guarantee of future performance. 

    10.1.9  Subordinated Debt Notices.  Intentionally Deleted. 

    10.1.10  Year 2000 Problem.  Intentionally Deleted. 

    10.1.11  Patent Schedules.  Contemporaneously with the furnishing of a copy of each annual audit report
pursuant to Section 10.1.1 and the set of quarterly financial statements pursuant to  Section 10.1.2 coinciding with the end of the second Fiscal
Quarter of each of the Company's fiscal years: (a) a schedule signed by a
Designated Person describing all of the Company's and its Subsidiaries' United States patents and patent applications; and (b) an amendment to the Notice of Security Interest most recently
filed in the United States Patent and Trademark Office conforming such filing to the scheduled patent and publicly available patent applications, each of which shall be in form and substance
satisfactory to the Agent and, the Company shall also furnish such schedule and amendment contemporaneously with the furnishing of the set of monthly financial statements pursuant to  Section 10.1.2
coinciding with the end of any Fiscal Month if the number of non-scheduled patent applications are ten (10) or
more. The Agent and each Bank agree that, except as may be required by applicable law or regulation, or by reason of subpoena 

26

after providing notice thereof and an opportunity to contest unless such notice is prohibited by the terms of the subpoena or applicable law, court order or government action or as may be necessary or
convenient for the enforcement of the Agent's and the Banks' rights and remedies under the Loan Documents or applicable law after the occurrence and during the continuance of any Event of Default,
neither the Agent nor such Bank will divulge, publish or otherwise reveal, either directly or through another, to any Person (other than to an Assignee or a Participant or a prospective Assignee or
Participant) any of the scheduled non-publicly available patent applications which the Company has identified in writing as being confidential; provided,
however, that no such information shall be confidential when it: (x) was known to the public prior to the date of its disclosure to the Agent and the Banks;
(y) becomes known to the public subsequent to the date of its disclosure by the Company through no act of the Agent or any Bank, or (z) becomes known to the Agent or any Bank on a
non-confidential basis from a source other than the Company. 

    10.1.12  Other Information.  Promptly from time to time, such other information concerning the Company
and its Subsidiaries as any Bank or the Agent may reasonably request. 

    10.2  Books, Records and Inspections.  Keep, and cause each Subsidiary to keep, its books and records in
accordance with sound business practices sufficient to allow the preparation of financial statements in accordance with GAAP; permit, and cause each Subsidiary to permit, any Bank or the Agent or any
representative thereof to inspect the properties and operations of the Company or such Subsidiary; and permit, and cause each Subsidiary to permit, at any reasonable time and with reasonable notice
(or at any time without notice if an Event of Default exists), any Bank or the Agent or any representative thereof to visit any or all of its offices, to discuss its financial matters with its
officers and its independent auditors (and the Company hereby authorizes such independent auditors to discuss such financial matters with any Bank or the Agent or any representative thereof), and to
examine (and, at the expense of the Company or the applicable Subsidiary, photocopy extracts from) any of its books or other records; and permit, and cause each Subsidiary to permit, the Agent and its
representatives to inspect the Inventory and other tangible assets of the Company or such Subsidiary, to perform appraisals of the equipment of the Company or such Subsidiary, and to inspect, audit,
check and make copies of and extracts from the books, records, computer data, computer programs, journals, orders, receipts, correspondence and other data relating to Inventory, Accounts Receivable
and any other collateral. All such inspections or audits by the Agent shall be at the Company's expense, provided that so long as no Event of Default or
Unmatured Event of Default exists, the Company shall not be required to reimburse the Agent for appraisals more frequently than twice each calendar year or for more than $10,000.00 per calendar year,
with the pre-Closing Date inspection not counting against such limit for the current calender year. 

    10.3  Maintenance of Property; Insurance.  

    (a) Keep,
and cause each Subsidiary to keep, all property useful and necessary in the business of the Company or such Subsidiary in good working order and condition,
ordinary wear and tear excepted. 

    (b) Maintain,
and cause each Subsidiary to maintain, with responsible insurance companies, such insurance as may be required by any law or governmental regulation or
court decree or order applicable to it and such other insurance, to such extent and against such hazards and liabilities, as is customarily maintained by companies similarly situated, but which shall
insure against all risks and liabilities of the type identified on Schedule 9.16 and shall have insured amounts no less than, and deductibles no
higher than, those set forth on such schedule; and, upon request of the Agent or any Bank, furnish to the Agent or such Bank a certificate setting forth in reasonable detail the nature and extent of
all insurance maintained by the Company and its Subsidiaries. The Company shall cause each
issuer of an insurance policy to provide the Agent with an endorsement (i) showing loss payable to the Agent with respect to each policy of property or casualty insurance 

27

and naming the Agent and each Bank as an additional insured with respect to each policy of insurance for liability for personal injury or property damage, (ii) providing that 30 days'
notice will be given to the Agent prior to any cancellation of, material reduction or change in coverage provided by or other material modification to such policy and (iii) reasonably
acceptable in all other respects to the Agent. 

    (c) UNLESS
THE COMPANY PROVIDES THE AGENT WITH EVIDENCE OF THE INSURANCE COVERAGE REQUIRED BY THIS AGREEMENT, THE AGENT MAY PURCHASE INSURANCE AT THE COMPANY'S EXPENSE
TO PROTECT THE AGENT'S AND THE BANKS' INTERESTS IN THE COLLATERAL. THIS INSURANCE MAY, BUT NEED NOT, PROTECT THE COMPANY'S INTERESTS. THE COVERAGE THAT THE AGENT PURCHASES MAY NOT PAY ANY CLAIM THAT
IS MADE AGAINST THE COMPANY IN CONNECTION WITH THE COLLATERAL. THE COMPANY MAY LATER CANCEL ANY INSURANCE PURCHASED BY THE AGENT, BUT ONLY AFTER PROVIDING THE AGENT WITH EVIDENCE THAT THE COMPANY HAS
OBTAINED INSURANCE AS REQUIRED BY THIS AGREEMENT. IF THE AGENT PURCHASES INSURANCE FOR THE COLLATERAL, THE COMPANY WILL BE RESPONSIBLE FOR THE COSTS OF THAT INSURANCE, INCLUDING INTEREST AND ANY OTHER
CHARGES THAT MAY BE IMPOSED WITH THE PLACEMENT OF THE INSURANCE, UNTIL THE EFFECTIVE DATE OF THE CANCELLATION OR EXPIRATION OF THE INSURANCE. THE COSTS OF THE INSURANCE MAY BE ADDED TO THE PRINCIPAL
AMOUNT OF THE LOANS OWING HEREUNDER. THE COSTS OF THE INSURANCE MAY BE MORE THAN THE COST OF THE INSURANCE THE COMPANY MAY BE ABLE TO OBTAIN ON ITS OWN. 

    10.4  Compliance with Laws; Payment of Taxes and Liabilities.  (a) Comply, and cause each
Subsidiary to comply, in all material respects with all applicable laws, rules, regulations, decrees, orders, judgments, licenses and permits, except where failure to comply could not reasonably be
expected to have a Material Adverse Effect; and (b) pay, and cause each Subsidiary to pay, prior to delinquency, all taxes and other governmental charges against it or any of its property, as
well as claims of any kind which, if unpaid, might become a Lien on any of its property; provided that the foregoing shall not require the Company or
any Subsidiary to pay any such tax or charge so long as it shall contest the validity thereof in good faith by appropriate proceedings, shall set aside on its books adequate reserves with respect
thereto in accordance with GAAP, the Company's or its Subsidiary's title to its property is not materially adversely affected or its use of such property in the ordinary course of its business is not
materially interfered with; provided further that, in all events, the Company or its Subsidiary shall pay or cause to be paid all such taxes,
assessments, charges or levies forthwith upon the commencement of foreclosure of any lien which may have attached as security therefor 

    10.5  Maintenance of Existence, etc.  Maintain and preserve, and (subject to  Section 10.11) cause each
Subsidiary to maintain and preserve, (a) its existence and good standing in the jurisdiction of its organization
and (b) its qualification to do business and good standing in each jurisdiction where the nature of its business makes such qualification necessary (except in those instances in which the
failure to be qualified or in good standing does not have a Material Adverse Effect). 

    10.6  Financial Covenants.  

    10.6.1  Interest Coverage Ratio.  Not permit the Interest Coverage Ratio for any Computation Period to be
less than 4.00 to 1.0. 

28

    10.6.2  Total Debt to EBITDA Ratio.  Not permit the Total Debt to EBITDA Ratio as of the last day of any
Computation Period to exceed the applicable ratio set forth below for such Computation Period: 

	Computation Period Ending
 
	 	Total Debt to EBITDA Ratio

	September 30, 2000 and December 31, 2000	 	2.50 to 1.00
	March 31, 2001 and June 30, 2001	 	2.25 to 1.00
	At any time thereafter	 	2.00 to 1.00.

    10.6.3  Capital Expenditures.  Not permit the aggregate amount of all Capital Expenditures made by the
Company and its Subsidiaries to exceed: (a) $3,500,000.00 in the Company's Fiscal Year 2000; (b) $4,000,000.00 in the Company's Fiscal Year 2001; (c) $4,500,000.00 in the
Company's Fiscal Year 2002; or (d) $5,500,000.00 in the Company's Fiscal Year 2003. 

    10.7  Limitations on Debt.  Not, and not permit any Subsidiary to, create, incur, assume or suffer to
exist any Debt, except: 

    (a) obligations
under this Agreement and the other Loan Documents; 

    (b) Debt
secured by Liens permitted by Section 10.8(d), and extensions, renewals and refinancings thereof;  provided that the aggregate amount of all such Debt
at any time outstanding shall not exceed $3,000,000.00; 

    (c) Debt
of Subsidiaries to the Company; 

    (d) unsecured
Debt of the Company to Subsidiaries; 

    (e) Subordinated
Debt; 

    (f)  Hedging
Obligations incurred for bona fide hedging purposes and not for speculation; 

    (g) Debt
described on Schedule 10.7 and any extension, renewal or refinancing thereof so long as the principal
amount thereof is not increased; and 

    (h) the
Debt to be Repaid (so long as such Debt is repaid on the Closing Date with the proceeds of the initial Loans hereunder). 

    10.8  Liens.  Not, and not permit any Subsidiary to, create or permit to exist any Lien on any of its
real or personal properties, assets or rights of whatsoever nature (whether now owned or hereafter acquired), except: 

    (a) Liens
for taxes or other governmental charges not at the time delinquent or thereafter payable without penalty or being contested in good faith by appropriate
proceedings and, in each case, for which it maintains adequate reserves; 

    (b) Liens
arising in the ordinary course of business (such as (i) Liens of carriers, warehousemen, mechanics and materialmen and other similar Liens imposed by
law and (ii) Liens incurred in connection with worker's compensation, unemployment compensation and other types of social security (excluding Liens arising under ERISA) or in connection with
surety bonds, bids, performance bonds and similar obligations) for sums not overdue or being contested in good faith by appropriate proceedings and not involving any deposits or advances or borrowed
money or the deferred purchase price of property or services and, in each case, for which it maintains adequate reserves; 

    (c) Liens
described on Schedule 10.8; 

    (d) subject
to the limitation set forth in Section 10.7(b), (i) Liens arising in connection with Capital
Leases (and attaching only to the property being leased), (ii) Liens existing on property at 

29

the time of the acquisition thereof by the Company or any Subsidiary (and not created in contemplation of such acquisition) and (iii) Liens that constitute purchase money security interests on
any property securing debt incurred for the purpose of financing all or any part of the cost of acquiring such property, provided that any such Lien
attaches to such property within 60 days of the acquisition thereof and attaches solely to the property so acquired; 

    (e) attachments,
appeal bonds, judgments and other similar Liens, for sums not exceeding $250,000.00 arising in connection with court proceedings,  provided the execution or other enforcement of such Liens is effectively
stayed and the claims secured thereby are being actively contested in good
faith and by appropriate proceedings; 

    (f)  easements,
rights of way, restrictions, minor defects or irregularities in title and other similar Liens not interfering in any material respect with the ordinary
conduct of the business of the Company or any Subsidiary; and 

    (g) Liens
arising under the Loan Documents. 

    10.9  Operating Leases.  Not permit the aggregate amount of all rental payments under Operating Leases
made (or scheduled to be made) by the Company and its Subsidiaries (on a consolidated basis) to exceed $2,000,000.00 in any Fiscal Year. 

    10.10  Restricted Payments.  Not, and not permit any Subsidiary to, (a) make any distribution to
any of its shareholders, (b) purchase or redeem any of its capital stock or other equity interests or any warrants, options or other rights in respect thereof, (c) pay any management
fees or similar fees to any of its shareholders or any Affiliate thereof, (d) make any redemption, prepayment, defeasance or repurchase of any Subordinated Debt or (e) set aside funds
for any of the foregoing. Notwithstanding the foregoing, any Subsidiary may pay dividends or make other distributions to the Company or to a Wholly-Owned Subsidiary. 

    10.11  Mergers, Consolidations, Sales.  Not, and not permit any Subsidiary to, be a party to any merger
or consolidation, or purchase or otherwise acquire all or substantially all of the assets or any stock of any class of, or any partnership or joint venture interest in, any other Person, or, except in
the ordinary course of its business, sell, transfer, convey or lease all or any substantial part of its assets, or sell or assign with or without recourse any receivables, except for (a) any
such merger, consolidation, sale, transfer, conveyance, lease or assignment of or by any Wholly-Owned Subsidiary into the Company or into, with or to any other Wholly-Owned Subsidiary; (b) any
such purchase or other acquisition by the Company or any Wholly-Owned Subsidiary of the assets or stock of any Wholly-Owned Subsidiary; and (c) sales and dispositions of assets (including the
stock of Subsidiaries) for at least fair market value (as determined by the Board of Directors of the Company) so long as the net book value of all assets sold or otherwise disposed of in any Fiscal
Year does not exceed 10% of the net book value of the consolidated assets of the Company and its Subsidiaries as of the last day of the preceding Fiscal Year. 

    10.12  Modification of Organizational Documents.  Not permit the Certificate or Articles of
Incorporation, By-Laws or other organizational documents of the Company or any Subsidiary to be amended or modified in any way which might reasonably be expected to materially adversely
affect the interests of the Banks. 

    10.13  Use of Proceeds.  Use the proceeds of the Loans, and the Letters of Credit, solely to refinance
existing Debt and for working capital and other general corporate purposes; and not use or permit any proceeds of any Loan to be used, either directly or indirectly, for the purpose, whether
immediate, incidental or ultimate, of "purchasing or carrying" any Margin Stock. 

30

    10.14  Further Assurances.  

    (a) Take,
and cause each Subsidiary to take, such actions as are necessary or as the Agent or the Required Banks may reasonably request from time to time (including the
execution and delivery of guaranties, security agreements, pledge agreements, mortgages, deeds of trust, financing statements and other documents, the filing or recording of any of the foregoing, and
the delivery of stock certificates and other collateral with respect to which perfection is obtained by possession) to ensure that (i) the obligations of the Company hereunder and under the
other Loan Documents (A) are secured by substantially all of the assets of the Company and (B) guaranteed by all of its Subsidiaries (including, promptly upon the acquisition or creation
thereof, any Subsidiary acquired or created after the date hereof) by execution of a counterpart of the Guaranty and (ii) the obligations of each Subsidiary under the Guaranty are secured by
substantially all of the assets of such Subsidiary. 

    (b) By
no later than 90 days after the Closing Date, enter into cash management agreements that are satisfactory to the Agent, in its sole discretion, and by no
later than 30 days after the Closing Date, cause each financial institution (other than the Agent) at which the Company or any Subsidiary maintains any lockbox, deposit account or other similar
account as of the Closing Date to deliver to the Agent a writing, in form and substance satisfactory to the Agent, (i) acknowledging and consenting to the security interest of the Agent in such
lockbox or account and all cash, checks, drafts and other instruments or writings for the payment of money from time to time therein, (ii) confirming such financial institution's agreement to
follow the instructions of the Agent with respect to all such cash, checks, drafts and other instruments or writings for the payment of money following receipt from the Agent of notice of the
occurrence of any Event of Default or Unmatured Event of Default and (iii) waiving all rights of setoff and banker's lien on all items held in any such lockbox or account (other than with
respect to payment of fees and expenses for account services). 

    (c) By
no later than 30 days after the Closing Date, cause each landlord or lessor of any of the Company's or any of Subsidiaries' business locations described
on Schedule 9.17 to execute and deliver to the Agent a landlord waiver in form and substance satisfactory to the Agent, in its sole discretion. 

    10.15  Transactions with Affiliates.  Not, and not permit any Subsidiary to, enter into, or cause, suffer
or permit to exist any transaction, arrangement or contract with any of its other Affiliates (other than the Company and its Subsidiaries) which is on terms which are less favorable than are
obtainable from any Person which is not one of its Affiliates; provided that this Section shall not restrict the payment or
grant of the following in the ordinary course of business approved by the Company's board of directors or shareholders: (a) directors' fees; (b) indemnity payments to directors, officers
or employees; (c) payments pursuant to employment agreements; or (d) grants of options or other equity arrangements with directors, officers or employees but any repurchases thereof or
other payments thereon are subject to Section 10.10. 

    10.16  Employee Benefit Plans.  Not, and not permit any member of the Controlled Group, to maintain,
establish, sponsor or contribute to any Pension Plan or any Multiemployer Pension Plan. 

    10.17  Environmental Matters.  

    (a) If
any Release or Disposal of Hazardous Substances shall occur or shall have occurred on any real property or any other assets of the Company or any Subsidiary, the
Company shall, or shall cause the applicable Subsidiary to, cause the prompt containment and removal of such Hazardous Substances and the remediation of such real property or other assets as necessary
to comply with all Environmental Laws and to preserve the value of such real property or other assets. Without limiting the generality of the foregoing, the Company shall, and shall cause each 

31

Subsidiary to, comply with any valid Federal or state judicial or administrative order requiring the performance at any real property of the Company or any Subsidiary of activities in response to the
Release or threatened Release of a Hazardous Substance. 

    (b) To
the extent that the transportation of "hazardous waste" as defined by RCRA is permitted by this Agreement, the Company shall, and shall cause its Subsidiaries
to, dispose of such hazardous waste only at licensed disposal facilities operating in compliance with Environmental Laws. 

    10.18  Unconditional Purchase Obligations.  Not, and not permit any Subsidiary to, enter into or be a
party to any contract for the purchase of materials, supplies or other property or services if such contract requires that payment be made by it regardless of whether delivery is ever made of such
materials, supplies or other property or services; provided that the foregoing does not prohibit the payment of any reasonable termination fees pursuant to any vendor contract entered into in the
ordinary course of business. 

    10.19  Inconsistent Agreements.  Not, and not permit any Subsidiary to, enter into any agreement
containing any provision which would (a) be violated or breached by any borrowing by the Company hereunder or by the performance by the Company or any Subsidiary of any of its obligations
hereunder or under any other Loan Document, (b) prohibit the Company or any Subsidiary from granting to the Agent, for the benefit of the Banks, a Lien on any of its assets or (c) create
or permit to exist or become effective any encumbrance or restriction on the ability of any Subsidiary to (i) pay dividends or make other distributions to the Company or any other applicable
Subsidiary, or pay any Debt owed to the Company or any other Subsidiary, (ii) make loans or advances to the Company or (iii) transfer any of its assets or properties to the Company. 

    10.20  Business Activities.  Not, and not permit any Subsidiary to, engage in any material line of
business other than the businesses engaged in on the date hereof and businesses reasonably related thereto. 

    10.21  Investments.  Not, and not permit any Subsidiary to, make or permit to exist any Investment in any
other Person, except (without duplication) the following: 

    (a) contributions
by the Company to the capital of any of its Subsidiaries, or by any such Subsidiary to the capital of any of its Subsidiaries; 

    (b) in
the ordinary course of business, Investments by the Company in any Subsidiary or by any Subsidiary in the Company, by way of intercompany loans, advances or
guaranties, all to the extent permitted by Section 10.7; 

    (c) Suretyship
Liabilities permitted by Section 10.7; 

    (d) Cash
Equivalent Investments; 

    (e) bank
deposits in the ordinary course of business, provided that the aggregate amount of all such deposits (excluding
amounts in payroll accounts or for accounts payable, in each case to the extent that checks have been issued to third parties) which are maintained with any bank other than a Bank shall not at any
time exceed $100,000.00; 

    (f)  Investments
in securities of account debtors received pursuant to any plan of reorganization or similar arrangement upon the bankruptcy or insolvency of such
account debtors; and 

    (h) Investments
listed on Schedule 10.21; 

provided that (x) any Investment which when made complies with the requirements of the definition of the term "Cash
Equivalent Investment" may continue to be held notwithstanding that such Investment if 

32

made thereafter would not comply with such requirements; (y) no Investment otherwise permitted by clause (b), or (c), shall be permitted to be
made if, immediately before or after giving effect thereto, any Event of Default or Unmatured Event of Default exists; and (z) all Cash
Equivalent Investments shall be held in accounts only in accordance with the cash management agreements described in Section 10.14(b) or, until
such agreements have been entered into, in accounts subject to a control agreement satisfactory to the Agent, in its sole discretion. 

    10.22  Restriction of Amendments to Certain Documents.  Intentionally Deleted. 

    10.23  Fiscal Year.  Not change its Fiscal Year. 

    10.24  Cancellation of Debt.  Not, and not permit any Subsidiary to, cancel any claim or debt owing to
it, except for reasonable consideration or in the ordinary course of business, and except for the cancellation of debts or claims not to exceed $10,000.00 in any Fiscal Year. 

    10.25  Foreign Operations.  Not, and not permit any Subsidiary to, maintain any tangible Collateral
outside the United States of America in excess of $500,000.00 in the aggregate for all such tangible Collateral. 

SECTION 11

EFFECTIVENESS; CONDITIONS OF LENDING, ETC.  

    The obligation of each Bank to make its Loans and of the Issuing Bank to issue Letters of Credit is subject to the following conditions precedent: 

    11.1  Initial Credit Extension.  The obligation of the Banks to make the initial Loans and the obligation
of the Issuing Bank to issue its initial Letter of Credit (whichever first occurs) is, in addition to the conditions precedent specified in  Section 11.2, subject to the conditions precedent that
all Debt to be Repaid has been (or concurrently with the initial borrowing will be) paid
in full, and that all agreements and instruments governing the Debt to be Repaid and that all Liens securing such Debt to be Repaid have been (or concurrently with the initial borrowing will be)
terminated; and (b) all of the following, each duly executed and dated the Closing Date (or such earlier date as shall be satisfactory to the Agent), in form and substance satisfactory to the
Agent (and the date on which all such conditions precedent have been satisfied or waived in writing by the Agent and the Banks is called the "Closing
Date"): 

    11.1.1  Notes.  The Notes. 

    11.1.2  Resolutions.  Certified copies of resolutions of the Board of Directors of the Company
authorizing the execution, delivery and performance by the Company of this Agreement, the Notes and the other Loan Documents to which the Company is a party; and certified copies of resolutions of the
Board of Directors of each other Loan Party authorizing the execution, delivery and performance by such Loan Party of each Loan Document to which such entity is a party. 

    11.1.3  Consents, etc.  Certified copies of all documents evidencing any necessary corporate or
partnership action, consents and governmental approvals (if any) required for the execution, delivery and performance by the Company and each other Loan Party of the documents referred to in this  Section
 11. 

    11.1.4  Incumbency and Signature Certificates.  A certificate of the Secretary or an Assistant Secretary
(or other appropriate representative) of each Loan Party certifying the names of the officer or officers of such entity authorized to sign the Loan Documents to which such entity is a party, together
with a sample of the true signature of each such officer (it being understood that the Agent and each Bank
may conclusively rely on each such certificate until formally advised by a like certificate of any changes therein). 

33

    11.1.5  Guaranty.  Intentionally Deleted. 

    11.1.6  Security Agreement.  A counterpart of the Security Agreement executed by the Company and each
Subsidiary. 

    11.1.7  Pledge Agreements.  Intentionally Deleted. 

    11.1.8  Opinions of Counsel.  The opinion of Oppenheimer Wolff & Donnelly LLP, counsel to the
Company and the other Loan Parties substantially in the form of Exhibit F. 

    11.1.9  Insurance.  Evidence satisfactory to the Agent of the existence of insurance required to be
maintained pursuant to Section 10.3(b), together with evidence that the Agent has been named as a lender's loss payee and an additional insured
on all related insurance policies and an assignment of business interruption insurance. 

    11.1.10  Copies of Documents.  Intentionally Deleted. 

    11.1.11  Payment of Fees.  Evidence of payment by the Company of all accrued and unpaid fees, costs and
expenses to the extent then due and payable on the Closing Date, together with all Attorney Costs of the Agent to the extent invoiced prior to the Closing Date,  plus such additional amounts of Attorney
Costs as shall constitute the Agent's reasonable estimate of Attorney Costs incurred or to be incurred by the
Agent through the closing proceedings (provided that such estimate shall not thereafter preclude final settling of accounts between the Company and the
Agent); provided further that the Agent and the Banks agree that the Company's liability to reimburse the Agent and the Banks for their attorneys' fees and legal expenses incurred in connection with
the preparation of this Agreement and the other Loan Documents shall be limited to the Agent's special counsel, Fabyanske, Westra & Hart, P.A., and then to the sum of $15,000.00  plus
out-of-pocket expenses. 

    11.1.12  Solvency Certificate.  A Solvency Certificate, substantially in the form of  Exhibit G, executed by a Designated Person. 

    11.1.13  Search Results; Lien Terminations.  Certified copies of Uniform Commercial Code Requests for
Information or Copies (Form UCC-11), or a similar search report certified by a party acceptable to the Agent, dated a date reasonably near to the Closing Date, listing all effective
financing statements which name the Company and each Subsidiary (under their present names and any previous names) as debtors and which are filed in the jurisdictions in which filings are to be made
pursuant to the Collateral Documents, together with (i) copies of such financing statements, (ii) executed copies of proper Uniform Commercial Code Form UCC-3 termination
statements, if any, necessary to release all Liens and other rights of any Person in any collateral described in the Collateral Documents previously granted by any Person (other than Liens permitted
by Section 10.8) and (iii) such other Uniform Commercial Code Form UCC-3 termination statements as the Agent may reasonably
request. 

    11.1.14  Filings, Registrations and Recordings.  The Agent shall have received each document (including
Uniform Commercial Code financing statements) required by the Collateral Documents or under law or reasonably requested by the Agent to be filed, registered or recorded in order to create in favor of
the Agent, for the benefit of the Banks, a perfected Lien on the collateral described therein, prior and superior to any other Person, in proper form for filing, registration or recording. 

    11.1.15  Closing Certificate.  A certificate signed by a Designated Person of the Company dated as of the
Closing Date, affirming the matters set for in Section 11.2.1 as of the Closing Date. 

    11.1.16  Borrowing Base Certificate.  A Borrowing Base Certificate dated as of the Closing Date. 

34

    11.1.17  Master Letter of Credit Agreement.  The Master Letter of Credit Agreement. 

    11.1.18  Other.  Such other documents as the Agent or any Bank may reasonably request. 

    11.2  Conditions.  The obligation (a) of each Bank to make each Loan and (b) of the Issuing
Bank to issue each Letter of Credit is subject to the following further conditions precedent that: 

    11.2.1  Compliance with Warranties, No Default, etc.  Both before and after giving effect to any
borrowing and the issuance of any Letter of Credit, the following statements shall be true and correct: 

    (a) the
representations and warranties of the Company and each Subsidiary set forth in this Agreement and the other Loan Documents shall be true and correct in all
material respects with the same effect as if then made (except to the extent stated to relate to a specific earlier date, in which case such representations and warranties shall be true and correct as
of such earlier date); and 

    (b) no
Event of Default, Unmatured Event of Default or Material Adverse Effect shall have then occurred and be continuing. 

    11.2.2  Confirmatory Certificate.  If requested by the Agent or any Bank, the Agent shall have received
(in sufficient counterparts to provide one to each Bank) a certificate dated the date of such requested Loan or Letter of Credit and signed by a duly authorized representative of the Company as to the
matters set out in Section 11.2.1 (it being understood that each request by the Company for the making of a Loan or the issuance of a Letter of
Credit shall be deemed to constitute a warranty by the Company that the conditions precedent set forth in Section 11.2.1 will be satisfied at the
time of the making of such Loan or the issuance of such Letter of Credit), together with such other documents as the Agent or any Bank may reasonably request in support thereof. 

SECTION 12

EVENTS OF DEFAULT AND THEIR EFFECT.  

    12.1  Events of Default.  Each of the following shall constitute an Event of Default under this
Agreement: 

    12.1.1  Non-Payment of the Loans, etc.  Default in the payment when due of the principal of
any Loan, or default, and continuance thereof for five days, in the payment when due of any interest, fee, reimbursement obligation with respect to any Letter of Credit or other amount payable by the
Company hereunder or under any other Loan Document. 

    12.1.2  Non-Payment of Other Debt.  Any default shall occur under the terms applicable to any
Debt of the Company or any Subsidiary in an aggregate amount (for all such Debt so affected) exceeding $500,000.00 and such default shall (a) consist of the failure to pay such Debt when due,
whether by acceleration or otherwise, (b) accelerate the maturity of such Debt or permit the holder or holders thereof, or any trustee or agent for such holder or holders, to cause such Debt to
become due and payable (or require the Company or any Subsidiary to purchase or redeem such Debt) prior to its expressed maturity; or (c) continue for more than the period of grace, if any,
applicable thereto and shall have the effect of causing, or permitting (any required notice having been given and grace period having expired) the holder of any such Debt or any trustee or other
Person acting on behalf of such holder to cause such Debt to become due prior to its stated maturity or to realize upon any collateral given as security therefor. 

    12.1.3  Other Material Obligations.  Default in the payment when due, or in the performance or observance
of, any material obligation of, or condition agreed to by, the Company 

35

or any Subsidiary with respect to any material purchase or lease of goods or services where such default, singly or in the aggregate with all other such defaults, might reasonably be expected to have
a Material Adverse Effect. 

    12.1.4  Bankruptcy, Insolvency, etc.  The Company or any Subsidiary becomes insolvent or generally fails
to pay, or admits in writing its inability or refusal to pay, debts as they become due; or the Company or
any Subsidiary applies for, consents to, or acquiesces in the appointment of a trustee, receiver or other custodian for the Company or such Subsidiary or any property thereof, or makes a general
assignment for the benefit of creditors; or, in the absence of such application, consent or acquiescence, a trustee, receiver or other custodian is appointed for the Company or any Subsidiary or for a
substantial part of the property of any thereof and is not discharged within 60 days; or any bankruptcy, reorganization, debt arrangement, or other case or proceeding under any bankruptcy or
insolvency law, or any dissolution or liquidation proceeding, is commenced in respect of the Company or any Subsidiary, and if such case or proceeding is not commenced by the Company or such
Subsidiary, it is consented to or acquiesced in by the Company or such Subsidiary, or remains for 60 days undismissed; or the Company or any Subsidiary takes any action to authorize, or in
furtherance of, any of the foregoing. 

    12.1.5  Non-Compliance with Loan Documents.  (a) Failure by the Company to comply with
or to perform any covenant set forth in Sections 10.1.5(a), or 10.5 through  10.22; or (b) failure by
the Company to comply with or to perform any other provision of this Agreement or any other Loan Document (and not
constituting an Event of Default under any other provision of this Section 12) and continuance of such failure described in this  clause (b) for
30 days. 

    12.1.6  Warranties.  Any warranty made by the Company or any Subsidiary herein or any other Loan Document
is breached or is false or misleading in any material respect, or any schedule, certificate, financial statement, report, notice or other writing furnished by the Company or any Subsidiary to the
Agent or any Bank in connection herewith is false or misleading in any material respect on the date as of which the facts therein set forth are stated or certified. 

    12.1.7  Pension Plans.  Intentionally Deleted. 

    12.1.8  Judgments.  Final judgments which exceed an aggregate of $1,000,000.00 shall be rendered against
the Company or any Subsidiary and shall not have been paid, discharged or vacated or had execution thereof stayed pending appeal within 30 days after entry or filing of such judgments. 

    12.1.9  Invalidity of Guaranty, etc.  Any Guaranty shall cease to be in full force and effect with
respect to either of any Subsidiary; or any Subsidiary (or any Person by, through or on behalf of such Subsidiary) shall contest in any manner the validity, binding nature or enforceability of the
Guaranty with respect to such Subsidiary. 

    12.1.10  Invalidity of Collateral Documents, etc.  Any Collateral Document shall cease to be in full
force and effect; or the Company or any Subsidiary (or any Person by, through or on behalf of the Company or any Subsidiary) shall contest in any manner the validity, binding nature or enforceability
of any Collateral Document. 

    12.1.11  Invalidity of Subordination Provisions, etc.  Any subordination provision in any document or
instrument governing Subordinated Debt, or any subordination provision in any guaranty by any Subsidiary of any Subordinated Debt, shall cease to be in full force and effect, or the Company or any
other Person (including the holder of any applicable Subordinated Debt) shall contest in any manner the validity, binding nature or enforceability of any such provision. 

    12.1.12  Change of Control.  (a) Any Person or group of Persons (within the meaning of
Section 13 or 14 of the Securities Exchange Act of 1934, but excluding any Specified Person (as 

36

defined below)) shall acquire beneficial ownership (within the meaning of Rule 13d-3 promulgated under such Act) of more than 20% (or, if greater, the percentage owned by the
Specified Persons of the outstanding securities (on a fully diluted basis and taking into account any securities or contract rights exercisable, exchangeable or convertible into equity securities) of
the Company having voting rights in the election of directors under normal circumstances; or (b) a majority of the members of the Board of Directors of the Company shall cease to be Continuing
Members. For purposes of the foregoing, "Continuing Member" means a member of the Board of Directors of the Company who either (i) was a member
of the Company's Board of Directors on the day before the Closing Date and has been such continuously thereafter or (ii) became a member of such Board of Directors after the day before the
Closing Date and whose election or nomination for election was approved by a vote of the majority of the Continuing Members then members of the Company's Board of Directors; and
"Specified Person" means TA Associates, St. Paul Venture Capital and/or Robert P.Cummins and trustees of trusts created by Robert P. Cummins for the
benefit or himself and his heirs. 

    12.2  Effect of Event of Default.  If any Event of Default described in  Section 12.1.4 shall occur, the
Commitments (if they have not theretofore terminated) shall immediately terminate and the Loans and all other
obligations hereunder shall become immediately due and payable and the Company shall become immediately obligated to Cash Collateralize all Letters of Credit, all without presentment, demand, protest
or notice of any kind; and, if any other Event of Default shall occur and be continuing, the Agent (upon written request of the Required Banks) shall declare the Commitments (if they have not
theretofore terminated) to be terminated and/or declare all Loans and all other obligations hereunder to be due and payable and/or demand that the Company immediately Cash Collateralize all Letters of
Credit, whereupon the Commitments (if they have not theretofore terminated) shall immediately terminate and/or all Loans and all other obligations hereunder shall
become immediately due and payable and/or the Company shall immediately become obligated to Cash Collateralize all Letters of Credit, all without presentment, demand, protest or notice of any kind.
The Agent shall promptly advise the Company of any such declaration, but failure to do so shall not impair the effect of such declaration. Notwithstanding the foregoing, the effect as an Event of
Default of any event described in Section 12.1.1 or Section 12.1.4 may be waived by the
written concurrence of all of the Banks, and the effect as an Event of Default of any other event described in this Section 12 may be waived by
the written concurrence of the Required Banks. Any cash collateral delivered hereunder shall be held by the Agent (without liability for interest thereon) and applied to obligations arising in
connection with any drawing under a Letter of Credit. After the expiration or termination of all Letters of Credit, such cash collateral shall be applied by the Agent to any remaining obligations
hereunder and any excess shall be delivered to the Company or as a court of competent jurisdiction may elect. 

SECTION 13

THE AGENT.  

    13.1  Appointment and Authorization.  

    (a) Each
Bank hereby irrevocably (subject to Section 13.9) appoints, designates and authorizes the Agent to take
such action on its behalf under the provisions of this Agreement and each other Loan Document and to exercise such powers and perform such duties as are expressly delegated to it by the terms of this
Agreement or any other Loan Document, together with such powers as are reasonably incidental thereto. Notwithstanding any provision to the contrary contained elsewhere in this Agreement or in any
other Loan Document, the Agent shall not have any duty or responsibility except those expressly set forth herein, nor shall the Agent have or be deemed to have any fiduciary relationship with any
Bank, 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 Agent. 

37

    (b) The Issuing Bank shall act on behalf of the Banks with respect to any Letters of Credit issued by it and the documents associated therewith. The Issuing Bank shall
have all of the benefits and immunities (i) provided to the Agent in this Section 13 with respect to any acts taken or omissions suffered
by the Issuing Bank in connection with Letters of Credit issued by it or proposed to be issued by it and the applications and agreements for letters of credit pertaining to such Letters of Credit as
fully as if the
term "Agent", as used in this Section 13, included the Issuing Bank with respect to such acts or omissions and (ii) as additionally
provided in this Agreement with respect to the Issuing Bank. 

    13.2  Delegation of Duties.  The Agent may execute any of its duties under this Agreement or any other
Loan Document by or through agents, employees or attorneys-in-fact and shall be entitled to advice of counsel concerning all matters pertaining to such duties. The Agent shall
not be responsible for the negligence or misconduct of any agent or attorney-in-fact that it selects with reasonable care. 

    13.3  Liability of Agent.  None of the Agent nor any of its directors, officers, employees or agents
shall (a) be liable for any action taken or omitted to be taken by any of them under or in connection with this Agreement or any other Loan Document or the transactions contemplated hereby
(except for its own gross negligence or willful misconduct), or (b) be responsible in any manner to any of the Banks for any recital, statement, representation or warranty made by the Company
or any Subsidiary or Affiliate of the Company, or any officer thereof, contained in this Agreement or in any other Loan Document, or in any certificate, report, statement or other document referred to
or provided for in, or received by the Agent under or in connection with, this Agreement or any other Loan Document, or the validity, effectiveness, genuineness, enforceability or sufficiency of this
Agreement or any other Loan Document, or for any failure of the Company or any other party to any Loan Document to perform its obligations hereunder or thereunder. The Agent shall not be under any
obligation to any Bank to ascertain or to inquire as to the observance or performance of any of the agreements contained in, or conditions of, this Agreement or any other Loan Document, or to inspect
the properties, books or records of the Company or any of the Company's Subsidiaries or Affiliates. 

    13.4  Reliance by Agent.  The Agent shall be entitled to rely, and shall be fully protected in relying,
upon any writing, resolution, notice, consent, certificate, affidavit, letter, telegram, facsimile, telex or telephone message, statement or other document or conversation believed by it to be genuine
and correct and to have been signed, sent or made by the proper Person or Persons, and upon advice and statements of legal counsel (including counsel to the Company), independent accountants and other
experts selected by the Agent. The Agent shall be fully justified in failing or refusing to take any action under this Agreement or any other Loan Document unless it shall first receive such advice or
concurrence of the Required Banks as it deems appropriate and, if it so requests, confirmation from the Banks of their obligation to indemnify the Agent against any and all liability and expense which
may be incurred by it by reason of taking or continuing to take any such action. The Agent shall in all cases be fully protected in acting, or in refraining from acting, under this Agreement or any
other Loan Document in accordance with a request or consent of the Required Banks and such request and any action taken or failure to act pursuant thereto shall be binding upon all of the Banks. 

    13.5  Notice of Default.  The Agent shall not be deemed to have knowledge or notice of the occurrence of
any Event of Default or Unmatured Event of Default except with respect to defaults in the payment of
principal, interest and fees required to be paid to the Agent for the account of the Banks, unless the Agent shall have received written notice from a Bank or the Company referring to this Agreement,
describing such Event of Default or Unmatured Event of Default and stating that such notice is a "notice of default". The Agent will notify the Banks of its receipt of any such notice. The Agent shall
take such action with respect to such Event of Default or Unmatured Event of Default as may be requested by the Required Banks in accordance with Section 12;
provided that unless and until the Agent has received any such request, the Agent may (but shall not be obligated to) take such 

38

action, or refrain from taking such action, with respect to such Event of Default or Unmatured Event of Default as it shall deem advisable or in the best interest of the Banks. 

    13.6  Credit Decision.  Each Bank acknowledges that the Agent has not made any representation or warranty
to it, and that no act by the Agent hereafter taken, including any review of the affairs of the Company and its Subsidiaries, shall be deemed to constitute any representation or warranty by the Agent
to any Bank. Each Bank represents to the Agent that it has, independently and without reliance upon the Agent and based on such documents and information as it has deemed appropriate, made its own
appraisal of and investigation into the business, prospects, operations, property, financial and other condition and creditworthiness of the Company and its Subsidiaries, and made its own decision to
enter into this Agreement and to extend credit to the Company hereunder. Each Bank also represents that it will, independently and without reliance upon the Agent and based on such documents and
information as it shall deem appropriate at the time, continue to make its own credit analysis, appraisals and decisions in taking or not taking action under this Agreement and the other Loan
Documents, and to make such investigations as it deems necessary to inform itself as to the business, prospects, operations, property, financial and other condition and creditworthiness of the
Company. Except for notices, reports and other documents expressly herein required to be furnished to the Banks by the Agent, the Agent shall not have any duty or responsibility to provide any Bank
with any credit or other information concerning the business, prospects, operations, property, financial or other condition or creditworthiness of the Company which may come into the possession of the
Agent. 

    13.7  Indemnification.  Whether or not the transactions contemplated hereby are consummated, the Banks
shall indemnify upon demand the Agent and its directors, officers, employees and agents (to the extent not reimbursed by or on behalf of the Company and without limiting the obligation of the Company
to do so), pro rata, from and against any and all Indemnified Liabilities; provided that no Bank shall be liable for any payment to any such Person of
any portion of the Indemnified Liabilities resulting from such Person's gross negligence or willful misconduct. Without limitation of the foregoing, each Bank shall reimburse the Agent upon demand for
its ratable share of any costs or out-of-pocket expenses (including Attorney Costs) incurred by the Agent in connection with the preparation, execution, delivery,
administration, modification, amendment or enforcement (whether through negotiations, legal proceedings or otherwise) of, or legal advice in respect of rights or responsibilities under, this
Agreement, any other Loan Document, or any document contemplated by or referred to herein, to the
extent that the Agent is not reimbursed for such expenses by or on behalf of the Company. The undertaking in this Section shall survive repayment of the Loans, cancellation of the Notes, expiration or
termination of the Letters of Credit, any foreclosure under, or modification, release or discharge of, any or all of the Collateral Documents, termination of this Agreement and the resignation or
replacement of the Agent. 

    13.8  Agent in Individual Capacity.  LaSalle and its Affiliates may make loans to, issue letters of
credit for the account of, accept deposits from, acquire equity interests in and generally engage in any kind of banking, trust, financial advisory, underwriting or other business with the Company and
its Subsidiaries and Affiliates as though LaSalle were not the Agent or the Issuing Bank hereunder and without notice to or consent of the Banks. The Banks acknowledge that, pursuant to such
activities, LaSalle or its Affiliates may receive information regarding the Company or its Affiliates (including information that may be subject to confidentiality obligations in favor of the Company
or such Affiliate) and acknowledge that the Agent shall be under no obligation to provide such information to them. With respect to their Loans (if any), LaSalle and its Affiliates shall have the same
rights and powers under this Agreement as any other Bank and may exercise the same as though LaSalle were not the Agent and the Issuing Bank, and the terms "Bank" and "Banks" include LaSalle and its
Affiliates, to the extent applicable, in their individual capacities. 

    13.9  Successor Agent.  The Agent may resign as Agent upon 30 days' notice to the Banks. If the
Agent resigns under this Agreement, the Required Banks shall, with (so long as no Event of Default 

39

exists) the consent of the Company (which shall not be unreasonably withheld or delayed), appoint from among the Banks a successor agent for the Banks. If no successor agent is appointed prior to the
effective date of the resignation of the Agent, the Agent may appoint, after consulting with the Banks and the Company, a successor agent from among the Banks. Upon the acceptance of its appointment
as successor agent hereunder, such successor agent shall succeed to all the rights, powers and duties of the retiring Agent and the term "Agent" shall mean such successor agent, and the retiring
Agent's appointment, powers and duties as Agent shall be terminated. After any retiring Agent's resignation hereunder as Agent, the provisions of this  Section 13 and Sections
14.6 and 14.13 shall
inure to its benefit as to any actions taken or omitted to be taken by it while it was Agent under this Agreement. If no successor agent has accepted appointment as Agent by the date which is
30 days following a retiring Agent's notice of resignation, the retiring Agent's resignation shall nevertheless thereupon become effective and the Banks shall perform all of the duties of the
Agent hereunder until such time, if any, as the Required Banks appoint a successor agent as provided for above. 

    13.10  Collateral Matters.  The Banks irrevocably authorize the Agent, at its option and in its
discretion, (a) to release any Lien granted to or held by the Agent under any Collateral Document (i) upon
termination of the Commitments and payment in full of all Loans and all other obligations of the Company hereunder and the expiration or termination of all Letters of Credit; (ii) constituting
property sold or to be sold or disposed of as part of or in connection with any disposition permitted hereunder; or (iii) subject to  Section 14.1, if approved, authorized or ratified in
writing by the Required Banks; or (b) to subordinate its interest in any collateral
to any holder of a Lien on such collateral which is permitted by clause (d)(i) or (d)(iii) of  Section 10.8 (it being understood that the Agent may conclusively rely on a certificate from the Company in determining whether the Debt secured
by any such Lien is permitted by Section 10.7(b)). Upon request by the Agent at any time, the Banks will confirm in writing the Agent's authority
to release, or subordinate its interest in, particular types or items of collateral pursuant to this Section 13.10. 

SECTION 14

GENERAL.  

    14.1  Waiver; Amendments.  No delay on the part of the Agent or any Bank in the exercise of any right,
power or remedy shall operate as a waiver thereof, nor shall any single or partial exercise by any of them of any right, power or remedy preclude other or further exercise thereof, or the exercise of
any other right, power or remedy. No amendment, modification or waiver of, or consent with respect to, any provision of this Agreement or the Notes shall in any event be effective unless the same
shall be in writing and signed and delivered by Banks having an aggregate Pro Rata Share of not less than the aggregate Pro Rata Share expressly designated herein with respect thereto or, in the
absence of such designation as to any provision of this Agreement or the Notes, by the Required Banks, and then any such amendment, modification, waiver or consent shall be effective only in the
specific instance and for the specific purpose for which given. No amendment, modification, waiver or consent shall change the Pro Rata Share of any Bank without the consent of such Bank. No
amendment, modification, waiver or consent shall (a) increase the Revolving Commitment Amount, (b) extend the date for payment of any principal of or interest on the Loans or any fees
payable hereunder, (c) reduce the principal amount of any Loan, the rate of interest thereon or any fees payable hereunder, (d) release the Guaranty or all or any substantial part of the
collateral granted under the Collateral Documents, (e) reduce the aggregate Pro Rata Share required to effect an amendment, modification, waiver or consent, (f) affect the definition of
"Borrowing Base" or any of its constituent parts in any manner which increases the amount available to the Borrower, or (g) affect  Section 12, without, in each case, the consent of all Banks.
No provision of Section 13 or
other provision of this Agreement affecting the Agent in its capacity as such shall be amended, modified or waived without the consent of the Agent. No provision of this Agreement relating to the
rights or duties of the Issuing Bank in its capacity as 

40

such shall be amended, modified or waived without the consent of the Issuing Bank. No Bank's Commitment shall be increased without such Bank's prior written consent. 

    14.2  Confirmations.  The Company and each holder of a Note agree from time to time, upon written request
received by it from the other, to confirm to the other in writing (with a copy of each such confirmation to the Agent) the aggregate unpaid principal amount of the Loans then outstanding under such
Note. 

    14.3  Notices.  Except as otherwise provided in Sections
2.2.2 and 2.2.3, all notices hereunder shall be in writing (including facsimile transmission) and shall be sent to the
applicable party at its address shown on Schedule 14.3 or at such other address as such party may, by written notice received by the other
parties, have designated as its address for such purpose. Notices sent by facsimile transmission shall be deemed to have been given when sent; notices sent by mail shall be deemed to have been given
three Business Days after the date when sent by registered or certified mail, postage prepaid; and notices sent by hand delivery or overnight courier service shall be deemed to have been given when
received. For purposes of Sections 2.2.2 and 2.2.3, the Agent shall be entitled to rely on telephonic
instructions from any person that the Agent in good faith believes is an authorized officer or authorized employee of the Company, and the Company shall hold the Agent and each other Bank harmless
from any loss, cost or expense resulting from any such reliance. 

    14.4  Computations.  Where the character or amount of any asset or liability or item of income or expense
is required to be determined, or any consolidation or other accounting computation is required to be made, for the purpose of this Agreement, such determination or calculation shall, to the extent
applicable and except as otherwise specified in this Agreement, be made in accordance with GAAP, consistently applied; provided that if the Company
notifies the Agent that the Company wishes to amend any covenant in Section 10 to eliminate or to take into account the effect of any change in
GAAP on the operation of such covenant (or if the Agent notifies the Company that the Required Banks wish to amend Section 10 for such purpose),
then the Company's compliance with such covenant shall be determined on the basis of GAAP in effect immediately before the relevant change in GAAP became effective, until either such notice is
withdrawn or such covenant is amended in a manner satisfactory to the Company and the Required Banks. 

    14.5  Regulation U.  Each Bank represents that it in good faith is not relying, either directly or
indirectly, upon any Margin Stock as collateral security for the extension or maintenance by it of any credit provided for in this Agreement. 

    14.6  Costs, Expenses and Taxes.  The Company agrees to pay on demand all reasonable
out-of-pocket costs and expenses of the Agent (including Attorney Costs) in connection with the preparation, execution, syndication, delivery and administration of this
Agreement, the other Loan Documents and all other documents provided for herein or delivered or to be delivered hereunder or in connection herewith (including any amendment, supplement or waiver to
any Loan Document), and all reasonable out-of-pocket costs and expenses (including Attorney Costs) incurred by the Agent and each Bank after an Event of Default in connection
with the enforcement of this Agreement, the other Loan Documents or any such other documents; provided that the Company's liability for the Attorney
Costs with respect to the preparation, execution, syndication, and delivery of this Agreement and the other Loan Documents is limited by  Section 11.1.11. In addition, the Company agrees to pay, and
to save the Agent and the Banks harmless from all liability for, (a) any
stamp or other taxes (excluding income taxes and franchise taxes based on net income) which may be payable in connection with the execution and delivery of this Agreement, the borrowings hereunder,
the issuance of the Notes or the execution and delivery of any other Loan Document or any other document provided for herein or delivered or to be delivered hereunder or in connection herewith and
(b) any fees of the Company's auditors in connection with any reasonable exercise by the Agent and the Banks of their rights pursuant to  Section 10.2. All obligations provided for in this
Section 14.6 shall survive repayment of
the 

41

Loans, cancellation of the Notes, expiration or termination of the Letters of Credit and termination of this Agreement. 

    14.7  Subsidiary References.  The provisions of this Agreement relating to Subsidiaries shall apply only
during such times as the Company has one or more Subsidiaries. 

    14.8  Captions.  Section captions used in this Agreement are for convenience only and shall not affect
the construction of this Agreement. 

    14.9  Assignments; Participations.  

    14.9.1  Assignments.  Any Bank may, with the prior written consents of the Issuing Bank and the Agent and
(so long as no Event of Default exists) the Company (which consents shall not be unreasonably delayed or withheld and, in any event, shall not be required for an assignment by a Bank to one of its
Affiliates), at any time assign and delegate to one or more commercial banks or other Persons (any Person to whom such an assignment and delegation is to be made being herein called an
"Assignee") all or any fraction of such Bank's Loans and Commitment (which assignment and delegation shall be of a constant, and not a varying,
percentage of all the assigning Bank's Loans and Commitment) in a
minimum aggregate amount equal to the lesser of (a) the amount of the assigning Bank's Pro Rata Share of the Revolving Commitment Amount and (b) $5,000,000.00;  provided that (x) no
assignment and delegation may be made to any Person if, at the time of such assignment and delegation, the Company would be
obligated to pay any greater amount under Section 7.6 or Section 8 to the Assignee than
the Company is then obligated to pay to the assigning Bank under such Sections (and if any assignment is made in violation of the foregoing, the Company will not be required to pay the incremental
amounts) and (y) the Company and the Agent shall be entitled to continue to deal solely and directly with such Bank in connection with the interests so assigned and delegated to an Assignee
until the date when all of the following conditions shall have been met: 

     (i) five
Business Days (or such lesser period of time as the Agent and the assigning Bank shall agree) shall have passed after written notice of such assignment and
delegation, together with payment instructions, addresses and related information with respect to such Assignee, shall have been given to the Company and the Agent by such assigning Bank and the
Assignee, 

    (ii) the
assigning Bank and the Assignee shall have executed and delivered to the Company and the Agent an assignment agreement substantially in the form of  Exhibit E (an "Assignment
Agreement"), together with any documents required to be delivered
thereunder, which Assignment Agreement shall have been accepted by the Agent, and 

    (iii) except
in the case of an assignment by a Bank to one of its Affiliates, the assigning Bank or the Assignee shall have paid the Agent a processing fee of $3,500. 

From
and after the date on which the conditions described above have been met, (x) such Assignee shall be deemed automatically to have become a party hereto and, to the extent that rights and
obligations hereunder have been assigned and delegated to such Assignee pursuant to such Assignment Agreement, shall have the rights and obligations of a Bank hereunder and (y) the assigning
Bank, to the extent that rights and obligations hereunder have been assigned and delegated by it pursuant to such Assignment Agreement, shall be released from its obligations hereunder. Within five
Business Days after effectiveness of any assignment and delegation, the Company shall execute and deliver to the Agent (for delivery to the Assignee and the Assignor, as applicable) a new Note in the
principal amount of the Assignee's Pro Rata Share of the Revolving Commitment Amount and, if the assigning Bank has retained a Commitment hereunder, a replacement Note in the principal amount of the
Pro Rata Share of the Revolving Commitment Amount retained by the assigning Bank (such Note to be in exchange for, but not in payment of, the predecessor Note held by such assigning Bank). Each such 

42

Note shall be dated the effective date of such assignment. The assigning Bank shall mark the predecessor Note "exchanged" and deliver it to the Company. Accrued interest on that part of the
predecessor Note being assigned shall be paid as provided in the Assignment Agreement. Accrued interest and fees on that part of the predecessor Note not being assigned shall be paid to the assigning
Bank. Accrued interest and accrued fees shall be paid at the same time or times provided in the predecessor Note and in this Agreement. Any attempted assignment and delegation not made in accordance
with this Section 14.9.1 shall be null and void. 

    Notwithstanding
the foregoing provisions of this Section 14.9.1 or any other provision of this Agreement, any Bank may at any
time assign all or any portion of its Loans and its Note to a Federal Reserve Bank (but no such assignment shall release any Bank from any of its obligations hereunder). 

    14.9.2  Participations.  Any Bank may at any time sell to one or more commercial banks or other Persons
participating interests in any Loan owing to such Bank, the Note held by such Bank, the Commitment of such Bank, the direct or participation interest of such Bank in any Letter of Credit or any other
interest of such Bank hereunder (any Person purchasing any such participating interest being herein called a "Participant"). In the event of a sale by a
Bank of a participating interest to a Participant, (a) such Bank shall remain the holder of its Note for all purposes of this Agreement, (b) the Company and the Agent shall continue to
deal solely and directly with such Bank in connection with such Bank's rights and obligations hereunder and (c) all amounts payable by the Company shall be determined as if such Bank had not
sold such participation and shall be paid directly to such Bank. No Participant shall have any direct or indirect voting rights hereunder except with respect to any of the events described in the
fourth sentence of Section 14.1. Each Bank agrees to incorporate the requirements of the preceding sentence into each participation agreement
which such Bank enters into with any Participant. The Company agrees that if amounts outstanding under this Agreement and the Notes are due and payable (as a result of acceleration or otherwise), each
Participant shall be deemed to have the right of setoff in respect of its participating interest in amounts owing under this Agreement, any Note and with respect to any Letter of Credit to the same
extent as if the amount of its participating interest were owing directly to it as a Bank under this Agreement or such Note; provided that such right of
setoff shall be subject to the obligation of each Participant to share with the Banks, and the Banks agree to share with each Participant, as provided in  Section 7.5. The Company also agrees that
each Participant shall be entitled to the benefits of  Section 7.6 and Section 8 as if it were a Bank
(provided that no Participant shall receive any greater compensation pursuant to Section 7.6 or  Section 8 than would have been paid to the participating Bank if no participation had been sold). 

    14.10  Governing Law.  This Agreement and each Note shall be a contract made under and governed by the
internal laws of the State of Minnesota applicable to contracts made and to be performed entirely within such State. Whenever possible each provision of this Agreement shall be interpreted in such
manner as to be effective and valid under applicable law, but if any provision of this Agreement shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the
extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining
provisions of this Agreement. All obligations of the Company and rights of the Agent and the Banks expressed herein or in any other Loan Document shall be in addition to and not in limitation of those
provided by applicable law. 

    14.11  Counterparts.  This Agreement may be executed in any number of counterparts and by the different
parties hereto on separate counterparts and each such counterpart shall be deemed to be an original, but all such counterparts shall together constitute but one and the same Agreement. 

    14.12  Successors and Assigns.  This Agreement shall be binding upon the Company, the Banks and the Agent
and their respective successors and assigns, and shall inure to the benefit of the Company, the Banks and the Agent and the successors and assigns of the Banks and the Agent. 

43

    14.13  Indemnification by the Company.  In consideration of the execution and delivery of this Agreement
by the Agent and the Banks and the agreement to extend the Commitments provided hereunder, the Company hereby agrees to indemnify, exonerate and hold the Agent, each Bank and each of the officers,
directors, employees, Affiliates and agents of the Agent and each Bank (each a "Bank Party") free and harmless from and against any and all actions,
causes of action, suits, losses, liabilities, damages and expenses, including Attorney Costs (collectively, the "Indemnified Liabilities"), incurred by
the Bank Parties or any of them as a result of, or arising out of, or relating to (a) any tender offer, merger, purchase of stock, purchase of assets or other similar transaction financed or
proposed to be financed in whole or in part, directly or indirectly, with the proceeds of any of the Loans, (b) the use, handling, release, emission, discharge, transportation, storage,
treatment or disposal of any hazardous substance at any property owned or leased by the Company or any Subsidiary, (c) any violation of any Environmental Laws with respect to conditions at any
property owned or leased by the Company or any Subsidiary or the operations conducted thereon, (d) the investigation, cleanup or remediation of offsite locations at which the Company or any
Subsidiary or their respective predecessors are alleged to have directly or indirectly disposed of hazardous substances or (e) the execution, delivery, performance or enforcement of this
Agreement or any other Loan Document by any of the Bank Parties, except for any such Indemnified Liabilities arising on account of the applicable Bank Party's gross negligence or willful misconduct.
If and to the extent that the foregoing undertaking may be unenforceable for any reason, the Company hereby agrees to make the maximum contribution to the payment and satisfaction of each of the
Indemnified Liabilities which is permissible under applicable law. All obligations provided for in this Section 14.13 shall survive repayment of
the Loans, cancellation of the Notes, expiration or termination of the Letters of Credit, any foreclosure under, or any modification, release or discharge of, any or all of the Collateral Documents
and termination of this Agreement. 

    14.14  Nonliability of Lenders.  The relationship between the Company on the one hand and the Banks and
the Agent on the other hand shall be solely that of borrower and lender. Neither the Agent nor any Bank shall have any fiduciary responsibility to the Company. Neither the Agent nor any Bank
undertakes any responsibility to the Company to review or inform the Company or any matter in connection with any phase of the Company's business or operations. The Company agrees that neither the
Agent nor any Bank shall have liability to the Company (whether sounding in tort, contract or otherwise) for losses suffered by the Company in connection with, arising out of, or in any way related to
the transactions contemplated and the relationship established by the Loan Documents, or any act, omission or event occurring in connection therewith, unless it is determined in a final
non-appealable judgment by a court of competent jurisdiction that such losses resulted from the gross negligence or willful misconduct of the party from which recovery is sought. Neither
the Agent nor any Bank shall have any liability with respect to, and the Company hereby waives, releases and agrees not to sue for, any special, indirect or consequential damages suffered by the
Company in connection with, arising out of, or in any way related to the Loan Documents or the transactions contemplated thereby. 

    14.15  Forum Selection and Consent to Jurisdiction.  ANY LITIGATION BASED HEREON,
OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, SHALL BE BROUGHT AND MAINT AINED EXCLUSIVELY IN THE COURTS OF THE STATE OF MINNESOTA OR IN THE UNITED STATES
DISTRICT COURT FOR THE DISTRICT OF MINNESOTA; PROVIDED THAT ANY SUIT SEEKING ENFORCEMENT AGAINST ANY COLLATERAL OR OTHER PROPERTY MAY BE BROUGHT, AT THE
AGENT'S OPTION, IN THE COURTS OF ANY JURISDICTION WHERE SUCH COLLATERAL OR OTHER PROPERTY MAY BE FOUND. THE COMPANY HEREBY EXPRESSLY AND IRREVOCABLY SUBMITS TO THE JURISDICTION OF THE COURTS OF THE
STATE OF MINNESOTA AND OF THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MINNESOTA FOR THE PURPOSE OF ANY SUCH LITIGATION AS SET FORTH ABOVE. THE COMPANY FURTHER IRREVOCABLY CONSENTS TO THE
SERVICE OF PROCESS BY REGISTERED MAIL, POSTAGE PREPAID, OR  

44

 BY PERSONAL SERVICE WITHIN OR WITHOUT THE STATE OF MINNESOTA. THE COMPANY HEREBY EXPRESSLY AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER
HAVE TO THE LAYING OF VENUE OF ANY SUCH LITIGATION BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.  

     14.16  Waiver of Jury Trial.  EACH OF THE COMPANY, THE AGENT AND EACH BANK HEREBY WAIVES ANY RIGHT TO A
TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS UNDER THIS AGREEMENT, ANY NOTE, ANY OTHER LOAN DOCUMENT AND ANY AMENDMENT, INSTRUMENT, DOCUMENT OR AGREEMENT DELIVERED OR
WHICH MAY IN THE FUTURE BE DELIVERED IN CONNECTION HEREWITH
OR THEREWITH OR ARISING FROM ANY BANKING RELATIONSHIP EXISTING IN CONNECTION WITH ANY OF THE FOREGOING, AND AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A
JURY. 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK] 

45

    Delivered at Minneapolis, Minnesota, as of the day and year first above written. 

	 	 	FARGO ELECTRONICS, INC.
	 

 	 
 	 

By	 

/s/ Gary R. Holland

	 	 	Title	President and CEO

	 

 	 
 	 

LASALLE BANK NATIONAL ASSOCIATION, as Agent
	 

 	 
 	 

By	 

/s/ J.D. Gatzlaff

	 	 	Title	Senior Vice President

	 

 	 
 	 

LASALLE BANK NATIONAL ASSOCIATION,

as Issuing Bank and as a Bank
	 

 	 
 	 

By	 

/s/ J.D. Gatzlaff

	 	 	Title	Senior Vice President

	 

 	 
 	 

HARRIS TRUST AND SAVINGS BANK, as a Bank
	 

 	 
 	 

By	 

/s/ Andrew T. Claar

	 	 	Title	Vice President

46

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