Document:

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                                                                   Exhibit 10.25

                              EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT (the "Agreement") is entered into as of November 27,
2001, between Channell Commercial Corporation, a Delaware corporation (the
"Company"), and Richard A. Cude ("Executive") with reference to the following
facts:

A.   WHEREAS, Executive is currently serving as a Director on the Company's
     Board of Directors (the "Board");

B.   WHEREAS, the Company regards Executive as valuable to it, and has
     determined that it would be to the advantage and interest of the Company
     and its stockholders to provide an inducement to provide executive services
     to the Company and an incentive for increased efforts during such service;

C.   Based on these facts, Executive and the Company wish to enter into an
     employment contract providing for the employment of Executive on the terms
     and conditions set forth herein.

NOW THEREFORE, based on the mutual covenants contained herein, the parties agree
as follows:

1.   Employment and Duties. The Company hereby agrees to employ Executive and
     ---------------------
     Executive hereby accepts employment with the Company under the terms and
     conditions set forth in this Agreement. Executive shall be employed as
     Chief Executive Officer, with the duties and responsibilities commensurate
     with his position and as may be assigned by the Board of Directors.
     Executive shall devote substantially all of his full working time,
     attention and energies to performing his duties for the Company on an
     exclusive basis (except for a limited amount of time devoted to personal
     financial matters and community activities), and shall perform his duties
     faithfully and to the best of his abilities.

2.   Term of Employment. Subject to earlier termination as provided in Section
     ------------------
     5, Executive's employment under this Agreement shall commence on the date
     first stated above and continue until the first anniversary of such date
     (the "Employment Term"). In the event that Executive continues to be
     employed by the Company following the Employment Term, that employment
     shall be governed by this agreement and shall continue for successive
     one-year terms until terminated by either party.

3.   Compensation. As compensation for the performance by Executive of all of
     ------------
     his obligations under this Agreement, the Company shall pay to Executive
     (less applicable federal, state and other withholdings):

     3.1. Base Salary. A base salary during the Employment Term, at a rate of
          -----------
          Two Hundred and Fifty Thousand Dollars ($250,000) per annum for the
          Employment Term, payable in accordance with the Company's normal
          practices for its senior executive officers. The Base Salary may be
          increased at the sole discretion of the Compensation Committee of the
          Board.

     3.2. Cash Bonus. The stock option package detailed in 4.5 below is the
          ----------
          primary incentive compensation component; however, a cash bonus
          payment may be made at the sole discretion of the Board.

     3.3. Relocation. The company shall reimburse Executive for relocation as
          ----------
          follows:

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          3.3.1. Relocation. Reasonable expense reimbursement for the insurance,
                 ----------
                 packing, transportation, storage, and delivery of personal
                 effects, limited household goods and one (1) personal
                 automobile.

          3.3.2. Temporary Living Allowance. An annual temporary living
                 --------------------------
                 allowance up to twenty-five thousand dollars ($25,000). The
                 mechanics for payment/reimbursement will be agreed between
                 executive and the Company's CFO.

          3.3.3. Cash in Lieu of Services. Relocation and/or Temporary Living
                 ------------------------
                 Allowance has no provision for cash in lieu of
                 payment/reimbursement for actual expenses incurred.

4.   Benefits.
     ---------

     4.1. Expenses. The Company shall repay or reimburse Executive for ordinary
          --------
          and necessary business expenses to the extent compatible with the
          Company's general policies for its senior executive officers.
          Executive shall keep accurate and complete records of all such
          expenses.

     4.2. Insurance Benefits. During the Employment Term, the Company shall
          ------------------
          provide Executive with those insurance benefits generally available to
          its senior executive officers. In particular, but without limiting the
          foregoing: (i) the Company shall be obligated, for the Employment
          Term, to pay the term portion (as opposed to the whole life portion)
          of the premiums for a $500,000 face amount term life insurance policy,
          under which Executive shall designate a beneficiary.

     4.3. Medical Insurance. In addition to the provisions of Section 4.2 of
          -----------------
          this Agreement, for the Employment Term, the Company shall provide
          Executive with Company-paid medical insurance to the same extent such
          insurance is made generally available to its senior executive
          officers.

     4.4. Vacation and Sick Leave. During the Employment Term, Executive shall
          -----------------------
          be entitled to a paid annual vacation in accordance with the policies
          established from time to time by the Company for its senior executive
          officers; provided, however, that Executive shall be entitled to no
          less than three (3) weeks paid vacation during the Employment Term.
          Without the Company's written consent, vacation must be taken during
          the Employment Term and Executive's vacation will be scheduled at
          times convenient to the Company's business. Executive shall be
          entitled to paid sick-days and personal days in accordance with the
          policies established from time to time by the Company for its senior
          executive officers.

     4.5. Incentive Stock Plan. Executive shall be issued a Common Stock Option
          --------------------
          Share grant in accordance with the Company's Incentive Stock Plan of
          One Hundred Thousand (100,000) option shares at a strike price
          determined at the end of trading on the day this agreement is approved
          by the Compensation Committee. Vesting may be accelerated at the sole
          discretion of the Board.

     4.6. Automobile. During the Employment Term, the Company shall provide a
          ----------
          fully paid leased automobile chosen by Executive with a sale price of
          approximately $48,000.

5.   Termination of Employment.
     --------------------------

     5.1. Termination. The Company may terminate Executive's employment with the
          -----------
          Company at any time with or without "Cause" by written notice to
          Executive. Cause exists if any one or more of the following should
          occur, as determined in good faith by the Board: Executive's (a)

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          failure to perform his duties under, or breach of, this Agreement, (b)
          failure to comply with a reasonable direction of the Board, (c) breach
          of his fiduciary duty to the Company or (d) conviction by a court of
          competent jurisdiction of a felony or other serious crime. In the
          event of Executive's physical or mental disability (so that Executive
          is not reasonably able to render full services as contemplated hereby)
          for any consecutive period exceeding eight (8) months, or for shorter
          periods aggregating more than eight (8) months during any twelve (12)
          month period, the Company shall nevertheless continue to pay full
          salary up to and including the last date of the eighth consecutive
          month of disability, or the day on which the shorter periods of
          disability shall have equaled to a total of eight (8) months during
          such twelve (12) month period, but the Company may, at any time within
          six (6) weeks thereafter, at its election terminate this Agreement by
          delivery of written notice thereof to Executive; provided, however,
          that any amount received by Executive under the term disability
          insurance policy described in Section 4.2 of this Agreement shall
          reduce the Company's obligation under this Section 5.1 dollar for
          dollar. In the event that Executive dies during the Employment Term,
          this Agreement shall terminate automatically.

     5.2. Payment Upon Termination.
          ------------------------

          5.2.1.Generally. Upon any termination, the Company shall pay to
                ---------
               Executive (or, if applicable, to Executive's estate) all amounts
               accrued and unpaid as of the date of termination in respect of
               (i), Executive's salary for periods through such date, (ii)
               vacation pay, (iii) any reimbursement for expenses owing to
               Executive pursuant to Section 4.1, (iv) relocation pursuant to
               Section 4.2. In the event of a termination with Cause, Executive
               shall only be entitled to the payments specified in this Section
               5.2.1.

          5.2.2.Termination Without Cause. If the Company terminates Executive
                -------------------------
               other than for Cause, then in addition to amounts that Executive
               is entitled to receive under Section 5.2.1, Executive shall be
               entitled to receive as a severance benefit (i) equal to the
               unpaid balance of the Employment Term Base Salary at the time of
               termination, payment of which shall be accelerated and paid in
               one lump sum as soon as practically possible, with an appropriate
               discount to reflect such acceleration, and (ii) accelerated
               vesting of common share option grants to Executive.

     5.3. Exclusivity of Remedies. Executive agrees that the rights and
          -----------------------
          entitlements set forth in this Section 5 are his exclusive rights and
          entitlements from the Company and any affiliated entity upon the
          termination of Executive's employment with the Company, and upon
          termination the Company shall be released from other obligations
          hereunder.

6.   Covenants.
     ---------

     6.1. Non-Interference Covenant. As a means reasonably designed to protect
          -------------------------
          the Company's Confidential Information (as hereinafter defined)
          (Executive hereby agreeing and acknowledging that the proscribed
          activities would necessarily involve the use of such Confidential
          Information), during the Employment Term and for a period of two years
          thereafter, Executive shall not, directly, indirectly or as an agent
          on behalf of or in conjunction with any person, firm, partnership,
          corporation or other entity, (a) hire, solicit or encourage the
          resignation of person who is then, or within the, prior six months has
          been, an employee of the Company or its affiliated entities
          (including, but not limited to, any independent sales representatives)
          to leave the employment of the Company or its affiliated entities, or
          (b) solicit or service any person or entity with whom the Company has
          a business

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          relationship or who is or was during the Employment Term, a customer
          or client of the Company.

     6.2. Employment Exclusive. Executive shall not, during the Employment Term,
          --------------------
          own any interest (other than up to 1% of the voting securities of a
          publicly traded corporation) in, render financial assistance to, or
          offer personal services (for payment or otherwise), to any entity or
          individual that competes with the Company in Company Business (as
          defined below) or that is a material supplier of the Company. In
          addition, Executive shall not engage in any activity that would
          interfere with the performance of Executive's services to the Company.
          "Company Business" means the Company's business as it is currently
          conducted, and any other business activity in which the Company is
          engaged at any time during Executive's employment with the Company.

     6.3. Confidential information. Executive occupies a position of trust and
          ------------------------
          confidence with respect to the Company's affairs and business.
          Executive has and will have access to Confidential Information, which
          he acknowledges is proprietary to the Company and highly sensitive in
          nature.

          6.3.1.Definition of Confidential Information. "Confidential
                --------------------------------------
               Information" means information disclosed to Executive or known to
               Executive as a consequence of or through his employment by the
               Company, whether or not related to his duties, and includes trade
               secrets or any other like information relating to the business
               and/or field of interest of the Company or any business and/or
               field of interest seriously considered by the Company during
               Executive's employment by the Company, including, but not limited
               to, information relating to Inventions (as defined below),
               disclosures, processes, systems, methods, formulas, patents,
               patent applications, machinery, materials, research activities
               and plans, cost of production, contract forms, prices, volume of
               sales, marketing methods and plans, promotional methods, and
               lists of names or classes of customers. Information shall for
               purposes of this Agreement be considered to be confidential if
               not known by the trade generally, even though such information
               may have been disclosed to one or more third parties pursuant to
               consulting agreements, joint research agreements, or other
               agreements entered into by the Company.

          6.3.2. No Disclosure. During and after Executive's employment with the
                 -------------
               Company, Executive shall not (a) use, disclose or otherwise
               permit any person or entity access to any of the Confidential
               Information other than as required in the good faith performance
               of Executive's duties with the Company, or (b) sell, license or
               otherwise exploit any products or services which embody in whole
               or in part any Confidential Information. During and after
               Executive's engagement with the Company, Executive shall take all
               reasonable precautions to prevent disclosure by Executive of the
               Confidential Information to unauthorized persons or entities.

          6.3.3. Return All Materials. Upon termination of Executive's
                 --------------------
               employment with the Company, Executive shall deliver to the
               Company all tangible materials in any way embodying the
               Confidential Information, including any documentation, records,
               listings, notes, data, sketches, drawings, memoranda, models,
               videos, accounts, reference materials, samples, machine-readable
               media and equipment, and wire frame models. Executive shall not
               retain any copies of any of the above materials.

     6.4. Assignment of Inventions.
          ------------------------

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          6.4.1. Definition of Inventions. "Inventions" mean discoveries,
                 ------------------------
               developments, concepts, ideas, methods, designs, improvements,
               inventions, formulas, processes, techniques, programs, know-how
               and data, whether or not patentable or registerable under
               copyright or similar statutes except, in accordance with
               California Labor Code Section 2870, any such that (a) is not
               related to the business of the Company, or the Company's actual
               or demonstrable research or development, (b) does not involve the
               use of any equipment, supplies, facility or trade secret
               information of the Company, (c) was developed entirely on
               Executive's own time, and (d) does not result from any work
               performed by Executive for the Company.

          6.4.2. Assignment. Executive agrees to and hereby does assign to the
                 ----------
               Company all his right, title and interest in any And all
               Inventions he may make during his employment with the Company.

          6.4.3. Duty to Disclose and Assist. Executive agrees to promptly
                 ---------------------------
               disclose in writing all Inventions to the Company, and to provide
               all assistance reasonably requested by the Company in the
               preservation of the Company's interests in the Inventions
               including obtaining patents in any country throughout the world.
               Such services will be without additional compensation if
               Executive is then employed by the Company and for reasonable
               compensation and subjected to his reasonable availability if he
               is not. If cannot, after reasonable effort, secure Executive's
               signature on any document or documents needed to apply for or
               prosecute any patent, copyright, or other right or protection
               relating to an Invention, whether because of his physical or
               mental incapacity or for any other reason whatsoever, Executive
               hereby irrevocably designates and appoints the Company and its
               duly authorized officers and agents as his agent and
               attorney-in-fact, to act for and in his behalf and in his name
               and stead for the purpose of executing and filing any such
               application or applications and taking all other lawfully
               permitted actions to further the prosecution and issuance of
               patents, copyrights, or similar protections thereon, with the
               same legal force and effect as if executed by him.

          6.4.4.Ownership of Copyrights. Executive agrees that any work prepared
                -----------------------
               for the Company which is eligible for United States copyright
               protection or protection under the Universal Copyright
               Convention, the Berne Copyright Convention and/or the Buenos
               Aires Copyright Convention shall be a work made for hire and
               ownership of all copyrights (including all renewals and
               extensions) therein shall vest in the Company. If any such work
               is deemed not to be a work made for hire for any reason,
               Executive hereby grants, transfers and assigns all right, title
               and interest in such work and all copyrights in such work and all
               renewals and extensions thereof to the Company, and agrees to
               provide all assistance reasonably requested by the Company in the
               establishment, preservation and enforcement of the Company's
               copyright in such work, such assistance to be provided at the
               Company's expense but without any additional compensation to
               Executive. Executive hereby agrees to and does hereby waive the
               enforcement of all moral rights with respect to the work
               developed or produced hereunder, including without limitation any
               and all rights of identification of authorship and any and all
               rights of approval, restriction or limitation on use or
               subsequent modifications.

     6.5. Litigation. Executive agrees to render assistance, advice and counsel
          ----------
          to the Company at its request regarding any matter, dispute or
          controversy with which the Company may become involved and of which
          Executive has or may have reason to have knowledge, information or

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          expertise. Such services will be without additional compensation if
          Executive is then employed by the Company and for reasonable
          compensation and subjected to his reasonable availability if he is
          not.

7.   Arbitration as the Exclusive Remedy.
     -----------------------------------

     7.1. Arbitration. Arbitration as the Exclusive Remedy Except for actions
          -----------
          seeking injunctive relief (which may be brought before any court
          having jurisdiction under this Agreement), any controversy or claim
          (whether against the Company or any parent, subsidiary or affiliate
          thereof, or any officer, director, employee or agent of any of the
          foregoing) arising out of or relating to this Agreement, including,
          but not limited to, any claim relating to its validity,
          interpretation, enforceability or breach, and/or any other claim or
          controversy arising out of the employment relationship or the
          commencement or termination of that relationship, including, but not
          limited to, claims which are brought against any of the Company's
          directors, officers, employees and agents and claims for breach of
          covenant, for breach of an implied covenant, for intentional
          infliction of emotional distress, or under any applicable statute
          (including, without limitation, claims for age or sex discrimination)
          which are not settled by agreement between the parties, shall be
          submitted to arbitration in Temecula, California (or such other place
          as the parties may mutually agree) before an arbitrator to be mutually
          agreed upon by the parties. In consideration of each party's agreement
          to submit to arbitration all disputes with regard to this Agreement
          and/or with regard to any alleged contract or tort or other claim
          arising out of the employment relationship or the commencement or
          termination of that employment relationship, and in consideration of
          the anticipated expedition and the minimizing of expense of this
          arbitration remedy, each agrees that the arbitration provisions of
          this Agreement shall provide it with its exclusive remedy against the
          other party (including its officers, directors, employees and agents)
          and each party expressly waives any right it might have to seek
          redress in any other forum except as provided herein.

     7.2. Procedures. The party filing a claim must present it in writing to the
          ----------
          other party in Temecula, California within six months of the date the
          party filing the claim knew or should have known of it or the date of
          the termination, whichever is earlier. Any claim not brought within
          the required time period will be waived forever. In the proceedings
          (i) all testimony of witnesses shall be taken under oath and (ii) upon
          conclusion of any proceedings hereunder, the arbitrator shall render
          findings of fact and conclusions of law in a written opinion setting
          forth the basis and reasons for any decision reached and deliver such
          documents to each party to this Agreement along with a signed copy of
          the award in accordance with Section 1283.6 of the California Code of
          Civil Procedure. The arbitrator shall have power to allocate between
          the parties in their award costs incurred in preparation for and as a
          result of any such arbitration, including, without limitation, filing
          fees, attorneys' fees, the compensation to be paid to the arbitrator
          in any such arbitration and costs of transcripts.

8.   Miscellaneous.
     -------------

     8.1. Agreement Authorized. Executive hereby represents and warrants that he
          --------------------
          is free to enter into this Agreement and to render his services
          pursuant to this Agreement, that he has resigned all offices with any
          other entities, and that he is not subject to any obligation or
          restriction that would prevent him from discharging his duties under
          this Agreement, and agrees to indemnify and hold harmless the Company
          from and with respect to any liability, damages or costs, including
          attorneys, fees, arising out of any breach by Executive of this

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          representation and warranty. The Company hereby represents and
          warrants that any required authorization of this Agreement by its
          Board of Directors has been obtained.

     8.2. Notices. Any notice required or desired to be given to the Company or
          -------
          to Executive shall be given in writing, and shall be addressed (i) to
          the Company at its principal place of business, and (ii) to Executive
          at his most recent home address in the records of the Company, or to
          such other address as that party may hereafter designate in writing,
          and shall be sufficiently given by actual delivery thereof to the
          Company or Executive, as the case may be, or by facsimile or overnight
          or registered mail, postage prepaid, return receipt requested,
          addressed to the other party as aforesaid, and the date of delivery,
          mailing or telegraphing shall be the date of the giving of such
          notice.

     8.3. Payment of Taxes. To the extent that any taxes become payable by
          ----------------
          Executive by virtue of any payments made or benefits conferred by the
          Company, the Company shall not be liable to pay or obligated to
          reimburse Executive for any such taxes or to make any adjustment under
          this Agreement. Any payments otherwise due under this Agreement to
          Executive, including, but not limited to, the Base Salary and any
          bonus, shall be reduced by any required withholding for Federal, State
          and/or local taxes and other appropriate payroll deductions. The
          Company shall be entitled to offset any payment obligations to
          Executive under this Agreement against any amounts that it alleges in
          good faith that Executive owes to the Company.

     8.4. Insurance. The Company may, from time to time, apply for and take out,
          ---------
          in its own name and at its own expense, life, health, accident,
          disability or other insurance on Executive in any sum or sums that it
          may deem necessary to protect its interests, and Executive shall aid
          and cooperate in all reasonable respects with the Company in procuring
          any and all such insurance, including, without limitation, submitting
          to the usual and customary medical examinations, and by filling out,
          executing and delivering such applications and other instruments in
          writing as may be reasonably required by an insurance company or
          companies to which an application or applications for such insurance
          may be made by or for the Company.

     8.5. Assignment. This Agreement is a personal contract, and the rights,
          ----------
          interests and obligations of Executive under this Agreement may not be
          sold, transferred, assigned, pledged or hypothecated, except that this
          Agreement may be assigned by the Company to any corporation or other
          business entity which succeeds to all or substantially all of the
          business of the Company through merger, consolidation, corporate
          reorganization or by acquisition of all or substantially all of the
          assets of the Company and which assumes the Company's obligations
          under this Agreement. The terms and conditions of this Agreement shall
          inure to the benefit of and be binding upon any successor to the
          business of the Company.

     8.6. Entire Agreement. This Agreement sets forth the entire understanding
          ----------------
          of the parties with respect to the employment relationship, including
          the commencement and termination of the employment relationship, and
          supersedes any and all prior agreements or understandings between the
          parties relating to such subject matter. No person has any authority
          to make any representation or promise on behalf of any of the parties
          which is inconsistent with the representations set forth in the
          Agreement and the Agreement has not been executed in reliance on any
          promise or representation not set forth in the Agreement.

     8.7. Modification, Waiver and Amendment. None of the terms or provisions of
          ----------------------------------
          this Agreement shall be modified or waived, and this Agreement may not
          be amended or terminated, except

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          by a written instrument signed by the party against which any
          modification, waiver, amendment or termination is to be enforced. No
          waiver of any one provision shall be considered a waiver of any other
          provision, and the fact that an obligation is waived for a period of
          time or in one instance shall not be considered to be a continuing
          waiver.

     8.8. Cooperation. Each party hereto agrees to execute any and all further
          -----------
          documents and writings and perform such other reasonable actions,
          which may be or become necessary or expedient to effectuate and carry
          out the provisions hereof.

     8.9. Governing Law. This Agreement has been negotiated and entered into in
          -------------
          the State of California, concerns a business with its principal
          offices in California and all questions with respect to this Agreement
          and the rights and liabilities of the parties shall be governed by the
          laws of that state, regardless of the choice of law provisions of
          California or any other jurisdiction.

     8.10. Equity. The parties hereto agree that the services to be rendered
           ------
          under the terms of this Agreement, and the rights and privileges
          granted to the Company by Executive under its terms, are of a special,
          unique, unusual, extraordinary and intellectual character involving
          skill of the highest order which gives them a peculiar value in the
          event of the breach by Executive of any of the provisions of this
          Agreement, the Company, in addition and as a supplement to such other
          rights and remedies as may exist in its favor, may apply to any court
          of law or equity having jurisdiction to enforce this Agreement, and/or
          may apply for injunctive relief against any act which would violate
          any of the provisions of this Agreement.

     8.11. Injunctive Relief Profits. Executive understands that monetary
           -------------------------
          damages will not be sufficient to avoid or compensate for a breach of
          any of the covenants contained in Section 6 hereof and that injunctive
          relief would be appropriate to prevent any such actual or threatened
          breach. Such right to obtain injunctive relief may be exercised, at
          the option of the Company, concurrently with, prior to, after, or in
          lieu of, the exercise of any other rights or remedies which the
          Company may have as a result of any such breach or threatened breach.
          Executive shall account for and pay over to the Company all
          compensation, profits and other benefits, after taxes, inuring to
          Executive's benefit which are derived or received by Executive or any
          other person or business entity controlled by Executive resulting from
          any action or transaction constituting a breach of any covenant
          contained in Section 6.

     8.12. Rules of Construction.
           ---------------------

          8.12.1. Headings. The Section headings in this Agreement are inserted
               only as a matter of convenience, and in no way define, limit, or
               extend or interpret the scope of this Agreement or of any
               particular Section.

          8.12.2. Tense and Case. Throughout this Agreement, as the context may
                  --------------
               require, references to any word used in one tense or case shall
               include all other appropriate tenses or cases.

          8.12.3. Severability. Nothing contained in this Agreement shall be
                  ------------
               construed so as to require the commission of any act contrary to
               law and whenever there is any conflict between any provision of
               this Agreement and any statute, law, ordinance, order or
               regulation, contrary to which the parties have no right to
               contract, the latter shall prevail, but in such event any
               provision of this Agreement so affected shall be

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               curtailed and limited only to the extent necessary to bring it
               within legal requirements.

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

EXECUTIVE ACKNOWLEDGES HAVING CAREFULLY READ, UNDERSTOOD AND CONSULTED WITH AND
BEEN ADVISED BY HIS OWN COUNSEL REGARDING ALL OF THE PROVISIONS IN THIS
AGREEMENT AND HAVING NEGOTIATED SUCH PROVISIONS. EXECUTIVE KNOWS THAT HE CANNOT
RELY ON ANY STATEMENT OUTSIDE OF (i) THIS AGREEMENT OR (ii) A FORMAL WRITTEN
AMENDMENT OF THIS AGREEMENT.

IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of
the day and year first written above.

/s/ Richard A. Cude                        /s/ William H. Channell Sr.
----------------------------               ------------------------------------
Richard A. Cude                              Channell Commercial Corporation

11/27/01                                  11/27/01
------------                               --------
Date                                       Date

                                     Page 9<PAGE>

                                                                   Exhibit 10.26

                          FIFTH AMENDMENT AND WAIVER
                          --------------------------

                                      TO
                                      --

                               CREDIT AGREEMENT
                               ----------------

          THIS FIFTH AMENDMENT AND WAIVER, dated as of December 17, 2001 ("Fifth
Amendment"), is by and among CHANNELL COMMERCIAL CORPORATION ("Borrower"), a
Delaware corporation, the financial institutions signatory hereto (collectively,
the "Lenders") and FLEET NATIONAL BANK, as Administrative Agent for the Lenders
(in such capacity, together with its successors in such capacity, the
"Administrative Agent").

PRELIMINARY STATEMENTS

          (A) The Borrower, the Lenders and the Administrative Agent are parties
to the Credit Agreement, dated as of May 1, 1998 and as amended by Amendment No.
1 to Credit Agreement, dated as of September 3, 1998 and Amendment No. 2 to
Credit Agreement, dated as of December 29, 1999, Amendment No. 3 to Credit
Agreement, dated as of July 20, 2000, and Fourth Amendment to Credit Agreement
dated as of May 31, 2001 (as heretofore amended, the "Original Credit Agreement"
and as it is hereby and as it may hereafter from time to time be amended,
modified and supplemented, the "Credit Agreement");

          (B) Certain Events of Default have occurred and are continuing under
the Credit Agreement as described in Article V hereof (the "Current Events of
Default");

          (C) Notwithstanding the entitlement of the Administrative Agent and
the Lenders to enforce their rights and remedies pursuant to the Credit
Agreement and other Loan Documents as a result of the Current Events of Default,
the Administrative Agent and the Lenders are willing to waive the Current Events
of Default on and subject to the terms and conditions set forth herein; and

          (D) Each capitalized term used but not otherwise defined herein shall
have the meaning ascribed thereto in the Credit Agreement and/or relevant Loan
Documents.

          NOW, THEREFORE, in consideration of the premises and of the mutual
covenants and agreements contained herein, the parties hereby agree as follows:
<PAGE>

Article I. Amendments to Credit Agreement and Security Agreement.
           ------------------------------------------------------

           This Fifth Amendment shall be deemed to be an amendment to the Credit
Agreement, and shall not be construed in any way as a replacement therefor. All
of the terms and provisions of this Fifth Amendment, including, without
limitation, the representations and warranties set forth herein, are hereby
incorporated by reference into the Credit Agreement as if such terms and
provisions were set forth in full therein. Capitalized terms used herein and not
otherwise defined shall have the meaning ascribed to them in the Credit
Agreement. The Credit Agreement is hereby amended in the following respects:

           1.1 Article I of the Credit Agreement, Section 1.01, Certain Defined
                                                                ---------------
Terms, is amended as follows:
-----

           The following definitions are inserted in proper alphabetical order:

     "Fifth Amendment" means the Fifth Amendment to the Credit Agreement dated
      ---------------
as of August 31, 2001.

     "Fifth Amendment Effective Date" shall have the meaning as set forth in the
      ------------------------------
preamble to Article III of the Fifth Amendment, i.e., the date on which all of
the conditions precedent to effectiveness of the Fifth Amendment shall have
occurred to the satisfaction of the Required Lenders and Administrative Agent.

     "Revised Article 9" shall mean Article 9 of the Uniform Commercial Code as
      -----------------
Revised ("Revised Article 9") and as in effect in the jurisdiction wherein the
Borrower is organized and incorporated and in the governing law state.

     "U.K. Real Property" shall mean real property known as Factory No. 1 Murray
      ------------------
Road, Leesons Hill, Orpington, Kent, England

     "Temecula Property" shall mean real property known as 26090 Ynez Road,
      -----------------
Temecula, Californa, owned by CC Holdings, Inc., a wholly owned subsidiary of
Borrower ("CC Holdings").

           1.2 Article II of the Credit Agreement is amended as follows:

           the following shall be added to Article II as Sections 2.05(c) and
2.05(d):

           "Section 2.05(c) - Notwithstanding anything to the contrary contained
in this Article II from and after the date of the Fifth Amendment, Borrower
shall not request and Lenders shall not make any Revolving Advances and/or issue
any Letters of Credit in excess of $23,154,828.82 as same shall be reduced in
accordance with Section 2.05, it being understood and agreed by the Loan Parties
that any payments made in accordance with this Agreement shall not be construed
to create availability for borrowing purposes under the Credit Agreement."

           "Section 2.05(d)(i) - On or before the date of the Fifth Amendment,
Borrower shall pay to Bank in immediately available funds an amount equal to
$1,000,000. Upon payment as aforesaid, the Revolving Facility Commitment shall
be permanently reduced by said amount.

                                       -2-
<PAGE>

          "Section 2.05(d)(ii) - On or before March 31, 2002, Borrower shall pay
to Lenders an amount equal to $3,500,000.00 in immediately available funds. Upon
payment as aforesaid, the Revolving Facility Commitment shall be permanently
reduced by said amount.

          "Section 2.05(d)(iii) - Immediately upon the sale of the Temecula
Property, Borrower shall pay or cause to be paid to the Lenders, in good funds,
an amount equal to no less than $1,500,000.00."

          1.3 Article VI of the Credit Agreement is amended as follows: Section
6.18 Financial Covenants is amended as follows:
     -------------------

          Section 6.18(a) Minimum Net Worth is deleted in its entirety and the
                          -----------------
following is substituted therefor:

          "(a) Minimum Net Worth. Commencing as of the fiscal quarter ending
               -----------------
December 31, 2001, and at all times thereafter, maintain, as of the last day of
each fiscal quarter, an excess of Consolidated total assets over Consolidated
total liabilities of the Borrower and its Subsidiaries of not less than the sum
of (i) Thirty Six Million Dollars ($36,000,000) plus (ii) 75% of positive
                                                ----
Consolidated Net Income (and excluding 100% of Consolidated net losses) of the
Borrower and its Subsidiaries since the date of this Fifth Amendment to and
including each date of determination computed on a cumulative basis for said
entire period, plus (iii) 100% of the Net Cash Proceeds received by the Borrower
               ----
from any Equity Offering."

          Section 6.18(b) Total Consolidated Debt to EBITDA. is deleted in its
                          ----------------------------------
entirety and the following is substituted therefore:

          "(b) Total Consolidated Debt to EBITDA. Commencing as of the fiscal
               ----------------------------------
quarter ending December 31, 2001 and at all times thereafter, maintain as of the
end of each fiscal quarter of the Borrower a ratio of (i) Total Consolidated
Debt (other than trade credit, accrued expenses and invoice taxes payable) to
(ii) EBITDA for the most recently completed quarter multiplied times four (4) of
not more than 3.77:1.00."

          Section 6.18(c) Fixed Change Coverage Ratio is deleted in its entirety
                          ---------------------------
and the following shall be substituted therefor:

          "(c) Fixed Charge Coverage Ratio. Commencing as of the fiscal quarter
               ---------------------------
ending December 31, 2001 and at all times thereafter, maintain as of the end of
each fiscal quarter of the Borrower a Fixed Charge Coverage Ratio of not less
than the following ratios for the requisite periods set forth below:

          Fiscal Quarter Ending:                      Not less than:
          ----------------------                      --------------

          December 31, 2001                              .62:1.00

          March 31, 2002                                 .84:1.00

          For purposes of this Section 6.18(c), "Fixed Charge Coverage Ratio"
shall mean, the ratio of (i) EBITDA for the most recently completed fiscal
quarter of the Borrower less the
                        ----

                                       -3-
<PAGE>

sum of (A) Capital Expenditures made in cash during such period, and (B) the
aggregate amount of federal, state, local and foreign taxes paid in cash by the
Borrower and its Subsidiaries during such period, to (ii) Consolidated cash
Interest Expense payable by the Borrower and its Subsidiaries on all Debt during
such period plus principal amounts of all Debt payable by the Borrower and its
            ----
Subsidiaries during such period excluding the principal payment of $3,500,000
referenced Section 2.05 (d) (ii) above."

          Section 6.18(d) Minimum Consolidated Interest Coverage Ratio. shall be
                          ---------------------------------------------
deleted in its entirety and the following shall be substituted therefor:

          "(d) Minimum Consolidated Interest Coverage Ratio. Maintain as of the
               --------------------------------------------
end of each fiscal quarter of the Borrower a ratio of (i) EBITDA for the most
recently completed quarter multiplied times four (4) to (ii) Consolidated
Interest Expense for the most recently completed four (4) fiscal quarters of not
less than 2.5:1.00."

          1.3  The following is added to the Security Agreement as Section 1(j):

          j.   The Loan Parties acknowledge and agree to the addition of the
     following provisions to the Security Agreement and to the Credit Agreement
     to the extent that Revised Article 9 is effective in the jurisdiction in
     which Borrower is organized, holds and owns Collateral that is security for
     the indebtedness, obligations and liabilities under the Credit Agreement
     described herein:

          1.   Attachment. In applying the law of any jurisdiction in which
               ----------
               Revised Article 9 is effect, the Security Collateral is "all
                                                                        ---
               assets" of the Borrower, whether or not within the scope of
               ------
               Revised Article 9. Collateral shall include, without limitation,
               the following categories or assets as defined in Revised Article
               9: goods (including promissory notes) documents, accounts
               (including health-care insurance receivables), chattel paper
               (whether tangible or electronic,) deposit accounts,
               letter-of-credit (whether or not the letter of credit is
               evidenced by writing), commercial tort claims, securities and all
               other investment property, general intangibles (including payment
               intangibles and software, supporting obligations and any and all
               proceeds of any thereof, wherever located, whether now owned and
               hereafter acquired. If the Borrower shall at any time, whether or
               not Revised Article 9 is in effect in any particular
               jurisdiction, acquire a commercial tort claim as defined in
               Revised Article 9, the Borrower shall immediately notify the Bank
               in writing signed by the Borrower of the brief details thereof
               and grant to the Bank in such writing a security interest therein
               and in the proceeds thereof, all upon the terms of this
               Agreement, with such writing to be in form and substance
               satisfactory to the Bank.

          2.   Perfection by Filing. The Bank may at any time and from time to
               --------------------
               time, pursuant to the provisions of this Agreement and without
               the necessity of Borrower's signature, file financing statements,
               continuation statements and amendments thereto that describe the
               Security Collateral as "all assets" of the Borrower or words of
                                       ----------
               similar effect and which contain any other information

                                       -4-
<PAGE>

               required by Part 5 of Revised Article 9 for the sufficiency or
               filing office acceptance of any financing statement, continuation
               statement or amendment, including whether the Borrower is an
               organization, the type of organization any organization
               identification number issued to the Borrower. The Borrower agrees
               to furnish any such information to the Bank promptly upon
               request. Any such financing statements, continuation statements
               or amendments may be signed by the Bank on behalf of the
               Borrower, as provided in this Agreement and may be filed at any
               time in any jurisdiction whether or not Revised Article 9 is in
               effect in that jurisdiction.

          3.   Other Perfection, etc. The Borrower shall at any time and from
               ---------------------
               time to time, whether or not Revised Article 9 is in effect in
               any particular jurisdiction, take such steps as the Bank may
               reasonably request for the Bank (a) to obtain acknowledgement, in
               form and substance satisfactory to the Bank, of any bailee having
               possession of any of the Security Collateral that the bailee
               holds such Security Collateral for the Bank, (b) to obtain
               "control" of any investment property, deposit accounts,
               letter-of-credit rights or electronic chattel paper (as such
               terms are defined in Revised Article 9 with corresponding
               provisions in Rev Section9-104, 9-105, 9-106 and 9-107 relating
               to what constitutes "control" for such items of Security
               Collateral), with any agreements establishing control to be in
               form and substance satisfactory tot he Bank, and (c) otherwise to
               insure the continued perfection and priority of the Bank's
               security interest in any of the Security Collateral and of the
               preservation of its rights, therein, following the effectiveness
               of Revised Article 9 in any jurisdiction.

          4.   Savings Clause. Nothing contained in this Section (j) shall be
               --------------
               construed to narrow the scope of the Bank's security interest in
               any of the Security Collateral or the perfection or priority
               thereof or to impair or otherwise limit any of the rights,
               powers, privileges or remedies of the Bank or any Bank hereunder
               except (and then only to the extent ) mandated by Revised Article
               9 then applicable.

          1.4  Article VIII of the Credit Agreement is amended by adding the
          following at the conclusion of Section 8.13:

          (a)  "the Borrower shall fail by June 30, 2002 to refinance and repay
          in full the Obligations owing to the Lenders and the Agent."

          (b)  "the Borrower and/or Guarantors shall fail to perform each and
          every term, condition or undertaking on its/their part to be performed
          hereunder including but not limited to Sections 2.05(d)(i), (ii),
          (iii) and/or (iv) and Section 4.1 of Article IV hereof. "

          1.5  Schedule 4.21 of the Credit Agreement is hereby amended to add
thereto, the U.K. Property and the Temecula Property.

                                       -5-
<PAGE>

Article II. Representations and Warranties; Confirmations
            ---------------------------------------------

            In order to induce the Lenders and the Administrative Agent to enter
into this Fifth Amendment, the Borrower and each of the other Loan Parties,
jointly and severally, represent and warrant to the Lenders and the
Administrative Agent that:

            2.1 As of the date hereof, and after giving effect to this Fifth
Amendment, no Default or Events of Default exists under the Credit Agreement,
other than the Current Events of Default, and no event exists which, with the
giving of notice or lapse of time, or both, would constitute a Default or Events
of Default.

            2.2 As of the date hereof and after giving effect to this Fifth
Amendment, each and every one of the representations and warranties set forth in
the Loan Documents shall be true, accurate and complete in all respects and with
the same effect as though made on the date hereof, and each shall hereby be
incorporated herein in full by reference as if restated herein in its entirety,
except for any representation or warranty limited by its terms to a specific
date and except for changes in the ordinary course of business which are not
prohibited by the Credit Agreement (as amended hereby) and which shall not,
either singly or in the aggregate, have a Material Adverse Effect.

            2.3 The execution, delivery and performance by (i) the Borrower of
this Fifth Amendment and any other Loan Document delivered pursuant hereto, and
(ii) each other Loan Party of any Loan Document to which it is a Party, are
within each such Loan Party's organizational powers and have been duly
authorized by all necessary corporate action on the part of each such Loan
Party. This Fifth Amendment is the legal, valid and binding obligation of the
Borrower enforceable against the Borrower in accordance with its terms and this
Fifth Amendment is the legal, valid and binding obligation of each Guarantor,
enforceable against each Guarantor in accordance with its terms.

            2.4 The execution, delivery and performance by the Borrower and each
other Loan Party of any Loan Document and consummation by the Borrower and each
other Loan Party of the transactions contemplated hereby and thereby does not
and shall not (a) conflict with or result in any breach or violation of any
provision of the certificate of incorporation or by-laws of the Borrower or any
other Loan Party, (b) result in any breach or violation of, or constitute a
default, other than the Current Events of Default (or an event which, with
notice or lapse of time or both, would constitute a default), under, or result
in the termination of, or accelerate the performance required by, or result in
the creation of a Lien upon any of the properties or assets of the Borrower or
any other Loan Party under any of the terms, conditions or provisions of any
note, bond, mortgage, indenture, deed of trust, license, lease agreement or
other instrument or obligation to which the Borrower or any other Loan Party is
a party or to which any of its properties or assets are subject, (c) require any
consent, approval, authorization or permit of, or filing with or notification
to, any third party or any governmental, judicial, administrative or regulatory
authority of the United States or of any state, local or foreign government or
subdivision thereof (a "Governmental Entity") or (d) violate any order, writ,
                        -------------------
injunction, decree, judgment, ruling, law, statute, rule or regulation of any
Governmental Entity.

                                       -6-
<PAGE>

          2.5 The Borrower hereby acknowledges and confirms that all of the
liens and security interests granted pursuant to the Loan Documents secure,
without limitation, the due payment and performance of all indebtedness,
liabilities and obligations of the Borrower to the Lenders under the Credit
Agreement as amended hereby, and that the term "Obligations" as used in the Loan
Documents (or any other term used therein to describe or refer to the
indebtedness, liabilities, and obligations of the Borrower to the Lenders and
the Administrative Agent) includes, without limitation, the indebtedness,
liabilities and obligations of the Borrower and the Administrative Agent to the
Lenders under the Credit Agreement as amended hereby.

          2.6 Each of the Guarantors hereby acknowledges and confirms that the
terms "Obligations", "Guaranteed Obligations" and "Guaranteed Liabilities" as
used in each Guaranty includes, without limitation, all of the indebtedness,
obligations and liabilities of the Borrower to the Lenders and the
Administrative Agent under the Credit Agreement as amended hereby.

          2.7 Each of the Guarantors hereby acknowledges and confirms that:

          (a) all of the liens and security interests granted pursuant to the
Security Agreement and any Collateral Document secure, without limitation, all
of the indebtedness, liabilities and obligations of such Guarantor to the
Lenders and the Administrative Agent under its Guaranty, as confirmed hereby,
and that the term "Obligations" as used in the Security Agreement and any
Collateral Document (or any other term used therein to describe or refer to the
indebtedness, liabilities and obligations of each Guarantor to the Lenders),
includes without limitation, the indebtedness, liabilities and obligations of
such Guarantor under its Guaranty, as confirmed hereby; and

          (b) all of the representations and warranties set forth in the
Security Agreement and each other Collateral Document, as confirmed hereby, are
true and correct as of the date hereof, except for any representation or
warranty limited by its terms to a specific date and except for changes in the
ordinary course of business which are not prohibited by the Security Agreement
or such other Collateral Document and which shall not, either singly or in the
aggregate, have a Material Adverse Effect.

Article III. Conditions Precedent to the Effectiveness of this Fifth Amendment.
             ------------------------------------------------------------------

             The Amendments contemplated by Article I hereof are subject to the
                                            ---------
satisfaction of each of the following conditions precedent. The date on which
all such conditions shall have been fulfilled to the satisfaction of the
Administrative Agent and the Required Lenders, and the date on which this Fifth
Amendment shall have become effective, shall be herein called the "Fifth
Amendment Effective Date".

             The Administrative Agent shall have received on or before the Fifth
Amendment Effective Date the following, and the following documents each of
shall be dated as of the Fifth Amendment Effective Date (unless otherwise
specified), in form and substance satisfactory to the Administrative Agent and
the Lenders, and in sufficient copies, for each Lender:

             3.1 Original, executed counterparts of this Fifth Amendment.

                                       -7-
<PAGE>

          3.2 $1,000,000 principal payment described in Section 2.05(d)(1).

          3.3 Intentionally omitted

          3.4 A fully executed Ratification of Guaranty and Acknowledgment of
Fifth Amendment and Waiver and Negative Pledge Agreement ("Ratification") in
form and substance satisfactory to the Administrative Agent whereby Egerton
reaffirms the Guaranty and agrees that until such time as the Obligations have
been indefeasibly paid in full, it shall not encumber, sell or otherwise dispose
of the U.K. Property.

          3.5 Certified copies of resolutions of the Board of Directors of the
Borrower, A.C. Egerton (Holdings) Limited CC Holdings, Inc. and each other Loan
Party approving this Fifth Amendment, the Ratification and each other Loan
Document to which it is or is to be a party, and of all documents evidencing
other necessary corporate action and governmental and other third party
approvals and consents, if any, with respect to this Fifth Amendment, and each
other Loan Document.

          3.6 A copy of a certificate of the Secretary of State of the
jurisdiction of incorporation of the Borrower, dated reasonably near the date
hereof, stating that the Borrower has paid all franchise taxes to the date of
such certificate and the Borrower is duly incorporated and in good standing
under the laws of the State of the jurisdiction of its incorporation.

          3.7 A certificate of the Borrower and each other Loan Party signed on
behalf of the Borrower or such other Loan Party, as the case may be, by a
Responsible Officer and the Secretary or an Assistant Secretary of the Borrower
or such other Loan Party, as the case may be, dated the date hereof (the
statements made in such certificate shall be true on and as of the date hereof),
certifying as to (1) the absence of any amendments to the charter of the
Borrower or such other Loan Party since the date of the Secretary of State's
certificate referred to above, or in the case of A.C. Egerton (Holdings)
Limited, since the copies of its Memorandum and Articles of Association as in
effect on the date delivered to the Administrative Agent in connection with the
Third Amendment to Credit Agreement, (2) the absence of any amendments to the
bylaws of the Borrower and each other Loan Party since the last date of delivery
thereof to the Administrative Agent, (3) the due incorporation and good standing
of the Borrower and each other Loan Party as a corporation organized under the
laws of the jurisdiction of its incorporation, and the absence of any proceeding
for the dissolution or liquidation of the Borrower or any other Loan Party, (4)
the truth of the representations and warranties contained herein, (5) the
satisfaction of the conditions precedent required of the Borrower and its
Subsidiaries as set forth in this Article III, and (6) the absence of any event
occurring and continuing, or resulting from the transactions contemplated by
this Fifth Amendment, that constitutes a Default, other than the Current Events
of Default.

          3.8 A certificate of the Secretary or an Assistant Secretary of the
Borrower and each other Loan Party certifying the names and true signatures of
the officers of the Borrower and each other Loan Party authorized to sign this
Fifth Amendment, the Guaranty Confirmation and each other Loan Document to which
they are or are to be parties and the other documents to be delivered hereunder
and thereunder.

                                       -8-
<PAGE>

          3.9 An amendment fee ("Amendment Fee") equal to $100,000.00 in
immediately available funds.

          3.10 All accrued fees and expenses of the Administrative Agent and if
and as appropriate, among the Lenders (including, without limitation, the
reasonable fees and expenses of counsel for the Administrative Agent,
syndication, collateral examination appraisal, and other direct out-of-pocket
expenses) shall have been paid.

          3.11 The Administrative Agent shall have received, in form and
substance reasonably satisfactory to it, such other documents, agreements and
instruments as the Administrative Agent may reasonably request for a transaction
of the nature contemplated by this Fifth Amendment and all proceedings
(including, without limitation, under applicable foreign law) in connection with
the transactions contemplated by this Fifth Amendment, and all documents
incidental thereto shall be satisfactory to the Administrative Agent.

Article IV. Conditions Subsequent
            ---------------------

            4.1 Borrower shall immediately notify Lenders if the Temecula
Property becomes the subject of a purchase and sale contract and Borrower shall
give Lenders timely notice of the indicative terms and conditions of any such
sale, including but not limited to purchase price and the closing date thereof.

Article V.  Waiver
            ------

            5.1 Waiver. The Borrower was and is in violation of the following
                ------
financial covenants (i) Minimum Net Worth under Section 6.18(a) as of March 31,
2001 and September 30, 2001, (ii) the ratio of Total Consolidated Debt to EBITDA
under Section 6.18(b) of the Credit Agreement as of March 31, 2001, June 30,
2001, and September 30, 2001, (iii) the Fixed Charge Coverage Ratio under
Section 6.18 (c) of the Credit Agreement as of March 31, 2001, June 30, 2001 and
September 30, 2001, and (iv) Minimum Consolidated Interest Coverage Ratio under
Section 6.18(d) as of March 31, 2001 and September 30, 2001. Effective on the
Fifth Amendment Effective Date, the Lenders and the Administrative Agent hereby
waive the Current Events of Default under Section 8.03 of the Credit Agreement
caused by the above-described violations of Section 6.18 of the Credit
Agreement, provided that such waiver shall be effective only with respect to the
Current Events of Default described in the preceding sentence and shall not be
applicable to any subsequent or other failure by the Borrower to comply with any
other terms of the Credit Agreement.

                                       -9-
<PAGE>

Article VI. Reference to and Effect Upon the Credit Agreement.
            --------------------------------------------------

            6.1 Effect. The Credit Agreement, the Collateral Documents and all
                ------
agreements, instruments and documents executed and delivered in connection with
any of the foregoing, shall each be deemed amended hereby to the extent
necessary, if any, to give effect to the provisions of this Fifth Amendment.

            6.2 No Waiver; References. The execution, delivery and effectiveness
                ---------------------
of this Fifth Amendment shall not operate as a waiver of any right, power or
remedy of the Administrative Agent or any Lender under the Credit Agreement, nor
constitute a waiver of any provision of the Credit Agreement, except as
specifically set forth herein. Upon the effectiveness of this Fifth Amendment,
each reference in:

                (i)   the Credit Agreement to "this Agreement", "hereunder",
"hereof", "herein" or words of similar import shall mean and be a reference to
the Credit Agreement as amended hereby;

                (ii)  the other Loan Documents to the "Credit Agreement" shall
mean and be a reference to the Credit Agreement as amended hereby;

                (iii) the Loan Documents to the "Loan Documents" shall be deemed
to include this Fifth Amendment, and each of the other Loan Documents;

Article VII. Miscellaneous.
             --------------

             7.1 Payment of Expenses. In addition to any and all expenses to be
                 -------------------
paid by Borrower pursuant to the Loan Documents, the Borrower shall pay to the
Administrative Agent, for the pro rata accounts of each Lender, all reasonable
documentation expenses in connection with this Fifth Amendment, including
reasonable legal fees.

             7.2 Continuing Effectiveness of Credit Agreement. Except as
                 --------------------------------------------
specifically amended hereby, the Credit Agreement and the other Loan Documents
shall remain in full force and effect in accordance with the terms and are
hereby ratified and confirmed.

             7.3 Headings. Section headings in this Fifth Amendment are included
                 --------
herein for convenience of reference only and shall not constitute a part of this
Fifth Amendment for any other purposes.

             7.4 Law. THIS FIFTH AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH
                 ---
AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK.

             7.5 Successors. This Fifth Amendment shall be binding upon the
                 ----------
Borrower, the other Loan Parties, the Lenders and the Administrative Agent and
their respective successors and assigns, and shall inure to the benefit of the
Borrower, the other Loan Parties, the Lenders and the Administrative Agent and
the successors and assigns of the Lenders and the Administrative Agent.

                                      -10-
<PAGE>

          7.6 Modification. No modification or waiver of or with respect to any
              ------------
provisions of this Fifth Amendment and all other agreements, instruments and
documents delivered pursuant hereto or thereto, nor consent to any departure by
the Administrative Agent or the Lenders from any of the terms or conditions
thereof, shall in any event be effective unless it shall be in writing and
executed in accordance with the provisions of the Credit Agreement, and then
such waiver or consent shall be effective only in the specific instance and for
the specific purpose for which given. No consent to or demand on the Borrower in
any case shall, of itself, entitle it to any other or further notice or demand
in similar or other circumstances. This Fifth Amendment, together with the
Credit Agreement, as amended, embodies the entire agreement and understanding
among the Borrower, the Administrative Agent and the Lenders and supersedes all
prior agreements and understandings relating to the subject matter hereof.

          7.7 Severability. The provisions of this Fifth Amendment are
              ------------
severable, and if any clause or provision shall be held invalid or unenforceable
in whole or in part in any jurisdiction, then such invalidity or
unenforceability shall affect only such clause or provision, or part thereof, in
such jurisdiction and shall not in any manner affect such clause or provision in
any other jurisdiction, or any other clause or provision of this Fifth Amendment
in any jurisdiction.

          7.8 Execution in Counterparts. This Fifth Amendment may be executed in
              -------------------------
any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed and delivered shall be deemed to be
an original and all of which taken together shall constitute one and the same
instrument. Transmission of signatures by facsimile shall be deemed effective as
if original manually executed counterparts had been delivered.

          IN WITNESS WHEREOF, each of the parties hereto has caused this Fifth
Amendment to the Credit Agreement to be duly executed as of the date first above
written.

                              CHANNELL COMMERCIAL CORPORATION

                              By /s/ Thomas Liguori
                                ------------------------------------------------
                                     Name:  Thomas Liguori
                                     Title: CFO

                              FLEET NATIONAL BANK
                              as Administrative Agent, Issuing Bank and a Lender

                              By /s/ George E. Durstin
                                ------------------------------------------------
                                     Name:  George E. Durstin
                                     Title: Vice President

                                      -11-
<PAGE>

                              WELLS FARGO BANK, NATIONAL ASSOCIATION
                              as a Lender

                              By /s/ Sylvia N. Vargas
                                ------------------------------------------------
                                     Name: Sylvia N. Vargas
                                     Title:Vice President

                                      -12-

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