Document:

EXHIBIT 10.2

                                PLEDGE AGREEMENT
                                ----------------

         THIS PLEDGE AGREEMENT  ("Agreement")  dated as of September 5, 2000, is
by  and  between  SAVVIS  COMMUNICATIONS  CORPORATION,  a  Delaware  corporation
("Debtor") whose address is 12851 Worldgate Drive, Herndon,  Virginia 20170, and
whose  Tax I.D.  No.  is  43-1809960,  and  NORTEL  NETWORKS  INC.,  a  Delaware
corporation  ("Secured Party"),  as Administrative  Agent for the "Lenders",  as
that term is defined below,  whose address is 2221 Lakeside  Blvd.,  Richardson,
Texas 75082.

                                R E C I T A L S:
                                ----------------

         A. Subject to the terms of that certain  Credit  Agreement  dated as of
June 30, 2000,  among  Debtor,  Savvis  Communications  Corporation,  a Missouri
corporation  ("Borrower"),  certain  of  the  Lenders  and  Secured  Party  (the
"Original  Credit  Agreement"),  certain of the Lenders  extended certain credit
facilities to Borrower.

         B. Pursuant to that certain Amended and Restated Credit Agreement dated
as of September 5, 2000,  among  Debtor,  Borrower,  the lenders  named  therein
(together with their  successors  and assigns,  the "Lenders") and Secured Party
(as such  agreement  may be  amended,  renewed,  extended,  restated,  replaced,
substituted,  supplemented or otherwise  modified from time to time, the "Credit
Agreement"),  the Original Credit  Agreement is,  concurrently  herewith,  being
amended and restated.

         C. Debtor has directly and  indirectly  benefited and will directly and
indirectly benefit from the Loans evidenced and governed by the Credit Agreement
and the other transactions evidenced by and contemplated in the Loan Documents.

         D. The  execution  and  delivery of this  Agreement  is required by the
terms of the Credit  Agreement  and is a condition  to the  availability  of the
Loans to Borrower pursuant to the Credit Agreement.

         NOW, THEREFORE, in consideration of the premises and for other good and
valuable  consideration,  the  adequacy,  receipt and  sufficiency  of which are
hereby acknowledged,  and in order to induce the Lenders to make the Loans under
the Credit Agreement, the parties hereto hereby agree as follows:

<PAGE>

                                    ARTICLE 1

                                   Definitions
                                   -----------

         Section 1.1 Definitions. As used in this Agreement, the following terms
have the following meanings:

                  "Amendment" has the meaning specified in Section 4.6(b).

                  "Capital   Stock"  means  corporate  stock  and  any  and  all
         securities,  shares,  partnership interests (whether general,  limited,
         special or other  partnership  interests),  limited  liability  company
         interests,  membership  interests,  equity  interests,  participations,
         rights or other equivalents  (however designated) of corporate stock or
         any of the foregoing  issued by any entity  (whether a  corporation,  a
         partnership,  a  limited  liability  company  or  another  entity)  and
         includes, without limitation, securities convertible into Capital Stock
         and rights, warrants or options to acquire Capital Stock.

                  "Collateral" has the meaning specified in Section 2.1.

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

                  "Instrument"  means any  "instrument," as such term is defined
         in Article or Chapter 9 of the UCC, now owned or hereafter  acquired by
         Debtor, and, in any event, shall include all promissory notes,  drafts,
         bills of exchange and trade acceptances of Debtor, whether now owned or
         hereafter acquired.

                  "Lien" means,  with respect to any  Property,  any mortgage or
         deed of trust, pledge, hypothecation,  assignment, deposit arrangement,
         security  interest,  tax lien,  financing  statement,  pledge,  charge,
         hypothecation or other lien, charge,  easement (other than any easement
         not materially impairing usefulness), encumbrance, preference, priority
         or other security agreement or preferential  arrangement of any kind or
         nature  whatsoever  on or with  respect  to such  Property  (including,
         without  limitation,  any  conditional  sale or other  title  retention
         agreement having  substantially  the same economic effect as any of the
         foregoing.

                  "Obligations" means the "Obligations", as such term is defined
         in  the  Credit  Agreement,  and  the  obligations,   indebtedness  and
         liabilities  of Debtor under this Agreement and any other Loan Document
         to which Debtor may be a party.

                                       2
<PAGE>

                  "Person"   means   any   individual,    corporation,    trust,
         association,  company,  partnership,  joint venture,  limited liability
         company, joint stock company, Governmental Authority or other entity.

                  "Pledged  Shares" means 100% of the Capital Stock from time to
         time  owned or  acquired  by  Debtor  in any  manner  in the  Borrower,
         including without limitation,  the Capital Stock identified on Schedule
         2 attached hereto, or on Schedule 1 to an Amendment.

                  "Proceeds"  means any  "proceeds,"  as such term is defined in
         Article or Chapter 9 of the UCC and, in any event,  shall include,  but
         not be  limited  to,  (a)  any  and  all  proceeds  of  any  insurance,
         indemnity,  warranty  or  guaranty  payable to Debtor from time to time
         with respect to any of the Collateral, (b) any and all payments (in any
         form whatsoever) made or due and payable to Debtor from time to time in
         connection with any requisition, confiscation, condemnation, seizure or
         forfeiture  of all or any part of the  Collateral  by any  Governmental
         Authority (or any Person acting, or purporting to act, for or on behalf
         of any Governmental Authority),  and (c) any and all other amounts from
         time to time paid or  payable  under or in  connection  with any of the
         Collateral.

                  "Property" means property and/or assets of all kinds,  whether
         real,  personal or mixed,  tangible or intangible  (including,  without
         limitation,  all rights relating thereto), whether owned or acquired on
         or after the date hereof.

                  "Revised Article 9" means the Revised Article 9 of the Uniform
         Commercial  Code  included  in the 1998  official  text of the  Uniform
         Commercial  Code as approved by the American Law  Institute in 1998 and
         the National Conference of Commissioners on Uniform State Laws in 1999.

                  "Subsidiary"   means,   with   respect  to  any  Person,   any
         corporation  or  other  entity  of which  at  least a  majority  of the
         outstanding shares of stock or other ownership  interests having by the
         terms thereof ordinary voting power to elect a majority of the board of
         directors (or Persons performing similar functions) of such corporation
         or entity (irrespective of whether or not at the time, in the case of a
         corporation,  stock of any other  class or classes of such  corporation
         shall have or might have voting power by reason of the happening of any
         contingency) is at the time directly or indirectly  owned or controlled
         by such Person or one or more of its Subsidiaries or by such Person and
         one or more of its Subsidiaries.

                  "UCC"  means the  Uniform  Commercial  Code as in effect on or
         after  the  date  hereof  in the  State of New York  and/or  any  other
         jurisdiction  the laws of which may be  applicable  to or in connection
         with the creation,  perfection or priority, or the effect of perfection
         or non-perfection,  of any Lien on any Property created or purported to
         be  created   pursuant  to  this  Agreement,   and  includes,   without
         limitation,  Revised  Article 9 if and when enacted in the State of New
         York and/or any other such jurisdiction.

                                       3
<PAGE>

                  "U.S." means the United States of America.

         Section 1.2 Other Definitional  Provisions.  Terms used herein that are
defined in the Credit Agreement and are not otherwise  defined herein shall have
the  meanings  therefor  specified  in  the  Credit  Agreement.   References  to
"Sections,"  "Subsections,"  "Exhibits"  and  "Schedules"  shall be to Sections,
Subsections,  Exhibits and Schedules,  respectively,  of this  Agreement  unless
otherwise specifically provided. All definitions contained in this Agreement are
equally  applicable to the singular and plural forms of the terms  defined.  All
references to statutes and regulations  shall include any amendments of the same
and any successor statutes and regulations. References to particular sections of
the UCC  should  be read to  refer  also to  parallel  sections  of the  Uniform
Commercial Code as enacted in each state or other jurisdiction where any portion
of the  Collateral is or may be located.  Terms used herein which are defined in
the UCC, unless otherwise defined herein or in the Credit Agreement,  shall have
the meanings  determined  in  accordance  with the UCC.  The term  "continuing",
"continuation"  or "continuance"  means, in reference to any Default or Event of
Default  that has  occurred,  that such Default or Event of Default has not been
either  cured to the  reasonable  satisfaction  of the Secured  Party within the
applicable  grace period (if any)  specified in this Agreement or the other Loan
Documents  (as  applicable)  or waived in  writing by the  requisite  Lenders in
accordance with Section 13.11 of the Credit Agreement.

                                    ARTICLE 2

                                Security Interest
                                -----------------

         Section 2.1 Security  Interest.  As collateral  security for the prompt
payment and performance in full when due of the  Obligations  (whether at stated
maturity,  by acceleration or otherwise),  Debtor hereby pledges and assigns (as
collateral) to Secured Party,  and grants to Secured  Party,  as  Administrative
Agent for the  Lenders,  a continuing  Lien on and  security  interest in all of
Debtor's right, title and interest in and to the following, whether now owned or
hereafter   arising  or  acquired  and  wherever  located   (collectively,   the
"Collateral"):

                  (a)  all of the  Pledged  Shares  and  certificates,  if  any,
representing the Pledged Shares, and all dividends, cash, Instruments, and other
property from time to time receivable or otherwise  distributed or distributable
in respect of or in exchange for any or all of the Pledged Shares; and

                  (b) all cash and non-cash  Proceeds and products of any of the
foregoing.

         Section 2.2  Delivery of  Collateral.  Debtor has  delivered to Secured
Party, endorsed in blank as appropriate,  all Collateral the possession of which
is necessary to perfect the security interest of Secured Party therein as of the
date  hereof.  Furthermore,  promptly  upon  Debtor  gaining  any  rights in any
additional   Collateral,   all  certificates  or  instruments   representing  or
evidencing the

                                       4
<PAGE>

Pledged Shares or any other  Collateral  shall be delivered to and held by or on
behalf of  Secured  Party  pursuant  hereto in  suitable  form for  transfer  by
delivery,  or accompanied by duly executed instruments of transfer or assignment
in blank,  all in form and substance  reasonably  satisfactory to Secured Party.
After the  occurrence  and during the  continuation  of a Default or an Event of
Default, Secured Party shall have the right at any time to exchange certificates
or instruments  representing  or evidencing any Pledged Shares in its possession
for certificates or instruments of smaller or larger denominations.

                                    ARTICLE 3

                         Representations and Warranties
                         ------------------------------

         To induce  Secured  Party and the Lenders to enter into this  Agreement
and the other Loan Documents, Debtor represents and warrants that:

         Section 3.1 Title.  Debtor is, and with respect to Collateral  acquired
after the date  hereof  Debtor  will be, the legal and  beneficial  owner of the
Collateral  free and clear of any Lien or other  encumbrance,  except  for those
Permitted  Liens  (if any)  which  are  expressly  permitted  to  attach  to the
Collateral in accordance with the Credit Agreement and Liens in favor of Secured
Party.

         Section 3.2 Financing  Statements.  Debtor has not signed any financing
statement,  security agreement or other Lien instrument covering all or any part
of the  Collateral,  except as may have  been  filed in favor of  Secured  Party
pursuant  to this  Agreement  and except  for  financing  statements  evidencing
Permitted Liens. Except as otherwise disclosed on Schedule 1 hereto, Debtor does
not do business and has not done business within the past five (5) years under a
trade name or any name other than its legal name set forth at the  beginning  of
this Agreement.

         Section  3.3  Principal  Place  of  Business.  The  principal  place of
business and chief executive office of Debtor, and the office where Debtor keeps
its books  and  records,  is  located  at the  address  of  Debtor  shown at the
beginning of this Agreement.

         Section 3.4       Pledged Shares.

                  (a) The Pledged  Shares have been duly  authorized and validly
         issued  and are  fully  paid and  nonassessable  under  the laws of the
         jurisdiction of incorporation of the Borrower.

                  (b) Debtor is the legal and  beneficial  owner of the  Pledged
         Shares, free and clear of any Lien (other than the Lien created by this
         Agreement),  and Debtor has not sold,  granted any option with  respect
         to, assigned, transferred or otherwise disposed of any of its rights or
         interest in or to the Pledged Shares.

                                       5
<PAGE>

                  (c) On the date  hereof,  the Pledged  Shares  constitute  the
         percentage of the issued and outstanding  Capital Stock of the Borrower
         indicated  on Schedule  1, as such  Schedule 1 may from time to time be
         supplemented, amended or modified.

         Section 3.5 Benefit.  Debtor expects to derive substantial benefit (and
Debtor may reasonably be expected to derive substantial  benefit),  directly and
indirectly, from the Loans and the other transactions contemplated by the Credit
Agreement.  Debtor will receive reasonably  equivalent value in exchange for the
Collateral  being provided by it pursuant to the Loan Documents to which it is a
party as security for the payment and performance of the Obligations.

                                    ARTICLE 4

                                    Covenants
                                    ---------

         Debtor   covenants  and  agrees  with  Secured  Party  that  until  the
Obligations  are paid and performed in full,  the  obligations  of Secured Party
under the Loan Documents and all Commitments of the Lenders have expired or have
been terminated:

         Section 4.1 Encumbrances. Except as otherwise permitted by the terms of
the Credit Agreement relating to disposition of assets, Debtor shall not create,
permit or suffer to exist, and shall defend the Collateral against,  any Lien or
other  encumbrance on the Collateral  except for those  Permitted Liens (if any)
which are expressly permitted to attach to the Collateral in accordance with the
Credit Agreement, and shall defend Debtor's rights in the Collateral and Secured
Party's  pledge  and  collateral  assignment  of and  security  interest  in the
Collateral  against  the  claims  and  demands  of all  Persons.  Subject to the
creation or  existence  of Permitted  Liens under the Credit  Agreement,  Debtor
shall do nothing to impair the rights of Secured Party in the Collateral.

         Section 4.2 Further Assurances. At any time and from time to time, upon
the request of Secured  Party,  and at the sole expense of Debtor,  Debtor shall
promptly  execute  and  deliver  all such  further  agreements,  documents,  and
instruments  and take such further action as Secured Party may deem necessary or
appropriate  to preserve  and perfect  its  security  interest in and pledge and
collateral  assignment  of the  Collateral  and  carry  out the  provisions  and
purposes of this  Agreement or to enable  Secured  Party to exercise and enforce
its rights and remedies hereunder with respect to any of the Collateral. Without
limiting the generality of the foregoing,  Debtor shall, subject to the terms of
the Credit  Agreement,  (a) execute and deliver to Secured Party such  financing
statements as Secured Party may from time to time require,  (b) take such action
as Secured  Party may request to permit  Secured  Party to have control over any
Collateral,  (c) deliver to Secured Party all Collateral the possession of which
is necessary to perfect the security  interest  therein,  duly  endorsed  and/or
accompanied by duly executed instruments of transfer or assignment,  all in form
and  substance  satisfactory  to Secured  Party;  and (d) execute and deliver to
Secured Party such other agreements, documents, and instruments as Secured Party
may require to perfect and maintain the validity,

                                       6
<PAGE>

effectiveness,  and  priority  of the  Liens  intended  to be  created  by  this
Agreement  or any other Loan  Document.  In the event  Debtor ever  fails,  upon
request of Secured Party,  to promptly (and in any event within two days of such
request)  execute and file one or more  financing  or  continuation  statements,
and/or amendments thereto, relating to all or any part of the Collateral, Debtor
authorizes  Secured Party to file financing or continuation  statements,  and/or
amendments  thereto  without the  signature of Debtor where  permitted by law. A
carbon, photographic or other reproduction of this Agreement or of any financing
statement  covering the  Collateral or any part thereof shall be sufficient as a
financing statement and may be filed as a financing statement.

         Section  4.3  Corporate  Changes.  Debtor  shall not  change  its name,
identity or  corporate  structure  in any manner  that might make any  financing
statement filed in connection with this Agreement  seriously  misleading  unless
Debtor  shall have given  Secured  Party thirty (30) days prior  written  notice
thereof  and shall have taken all action  deemed  necessary  or  appropriate  by
Secured  Party to protect its Liens and the  perfection  and  priority  thereof.
Debtor shall not change its principal place of business,  chief executive office
or the place  where it keeps its books and  records  unless it shall  have given
Secured Party thirty (30) days prior written notice thereof and shall have taken
all  action  deemed  necessary  or  appropriate  by  Secured  Party to cause its
security  interest in the Collateral to be perfected with the priority  required
by this Agreement.

         Section 4.4 Notification. Debtor shall promptly notify Secured Party of
(a) any  Lien,  encumbrance  or claim  (other  than  Permitted  Liens)  that has
attached to or been made or  asserted  against  any of the  Collateral,  (b) any
material change in any of the Collateral,  including,  without  limitation,  any
material  damage to or loss of  Collateral,  and (c) the occurrence of any other
event or condition (including,  without limitation, matters as to Lien priority)
that could  reasonably  be  expected  to have a material  adverse  effect on the
Collateral or the security interest created hereunder.

         Section 4.5       Voting Rights, Distributions, Etc.

                   (a) So long as no Event of Default shall have occurred and be
continuing:

                           (i) Debtor  shall be entitled to exercise any and all
                  voting  and  other  consensual  rights   (including,   without
                  limitation,   the  right  to  give   consents,   waivers   and
                  notifications  in  respect  of  any  of  the  Pledged  Shares)
                  pertaining to any of the Collateral or any part thereof; and

                           (ii) Unless an Event of Default  shall have  occurred
                  and be  continuing,  Debtor  shall be  entitled to receive and
                  retain any and all  dividends  and interest paid in respect of
                  any of the  Collateral  to the extent  permitted by the Credit
                  Agreement; provided, however, that any and all

                                    (A)  Restricted  Payments paid or payable in
                           violation of the terms of the Credit Agreement,

                                       7
<PAGE>

                                    (B)  Restricted  Payments  paid  or  payable
                           other than in cash in respect of, and instruments and
                           other  Property  received,  receivable  or  otherwise
                           distributed  in respect of, or in exchange  for,  any
                           Collateral,

                                    (C)  Restricted  Payments  hereafter paid or
                           payable  in  cash in  respect  of any  Collateral  in
                           connection  with a partial  or total  liquidation  or
                           dissolution  or in  connection  with a  reduction  of
                           capital, capital surplus or paid-in-surplus, and

                                    (D)  cash   paid,   payable   or   otherwise
                           distributed in redemption of, or in exchange for, any
                           Collateral,

         shall be, and shall be forthwith delivered to Secured Party to hold as,
         Collateral and shall,  if received by Debtor,  be received in trust for
         the benefit of Secured Party,  be segregated from the other Property or
         funds  of  Debtor  and be  forthwith  delivered  to  Secured  Party  as
         Collateral  in  the  same  form  as so  received  (with  any  necessary
         endorsement).  All amounts  (other than  amounts  described  in clauses
         (ii)(A)  through (D) above) received by Secured Party in respect of any
         Collateral shall be either (1) promptly  released to Debtor, so long as
         no Default or Event of Default shall have occurred and be continuing or
         (2) if any  Default or Event of  Default  shall  have  occurred  and be
         continuing,  held by Secured  Party and (if an Event of  Default  shall
         have  occurred  and be  continuing)  applied as  provided by the Credit
         Agreement.  During  the  continuance  of any  Default,  any  dividends,
         interest or other distributions (whether in cash, securities,  Property
         or otherwise)  received by Debtor with respect to any Collateral  shall
         be held by Debtor in trust for the benefit of Secured Party and, during
         the  continuance  of any Event of Default,  upon the request of Secured
         Party,  shall  be  delivered  promptly  to  Secured  Party  to  hold as
         Collateral,  as Secured Party may in its discretion determine.  If such
         Event of  Default  is waived or cured to the  satisfaction  of  Secured
         Party, any such  distributions  received by Secured Party (except those
         of the types described in clauses (ii)(A) through (D) above which shall
         not be  released  to  Debtor)  shall be  returned  promptly  to  Debtor
         (provided  that no other Default or Event of Default  exists).  If such
         Default  remains  uncured  and  becomes an Event of  Default,  any such
         distributions  will be  applied  by Secured  Party as  provided  in the
         Credit Agreement.

                  (b) Upon the occurrence and during the continuance of an Event
of Default:

                           (i)  Secured  Party  may,  without  notice to Debtor,
                  transfer or  register  in the name of Secured  Party or any of
                  its nominees any or all of the Collateral, as applicable,  the
                  proceeds  thereof  (in  cash  or  otherwise)  and  all  liens,
                  security,  rights,  remedies and claims of Debtor with respect
                  thereto held by Secured Party hereunder,  and Secured Party or
                  its  nominee  may  thereafter,  after  delivery  of  notice to
                  Debtor,  exercise  all  voting  and  corporate  rights  at any
                  meeting  of any  corporation,  partnership

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<PAGE>

                  or other business entity issuing any of the Collateral and any
                  and all rights of conversion,  exchange,  subscription  or any
                  other rights,  privileges or options  pertaining to any of the
                  Collateral  as  if  it  were  the  absolute   owner   thereof,
                  including,  without  limitation,  the right to exchange at its
                  discretion  any and all of the  Collateral  upon  the  merger,
                  consolidation,   reorganization,   recapitalization  or  other
                  readjustment of any corporation, partnership or other business
                  entity issuing any of such  Collateral or upon the exercise by
                  the  Borrower  or  Secured  Party of any right,  privilege  or
                  option pertaining to any of the Collateral,  and in connection
                  therewith,   to  deposit  and  deliver  any  and  all  of  the
                  Collateral  with any committee,  depositary,  transfer  agent,
                  registrar  or other  designated  agency  upon  such  terms and
                  conditions as it may determine,  all without  liability except
                  to account for Property  actually  received by it, but Secured
                  Party  shall  have no duty to  exercise  any of the  aforesaid
                  rights,  privileges or options,  and neither Secured Party nor
                  any Lender  shall be  responsible  for any failure to do so or
                  delay in so doing.

                           (ii) All rights of Debtor to exercise  the voting and
                  other  consensual  rights which it would otherwise be entitled
                  to exercise  pursuant to Section  4.5(a)(i) and to receive the
                  dividends,  interest  and other  distributions  which it would
                  otherwise  be  authorized  to receive  and retain  pursuant to
                  Section  4.5(a)(ii)  shall be  suspended  until  such Event of
                  Default  shall no longer  exist,  and all such  rights  shall,
                  until such Event of Default shall no longer  exist,  thereupon
                  become vested in Secured Party which shall  thereupon have the
                  sole right to exercise such voting and other consensual rights
                  and to receive and hold as Collateral such dividends, interest
                  and other distributions.

                           (iii) All dividends, interest and other distributions
                  which are  received by Debtor  contrary to the  provisions  of
                  this Section 4.5(b) shall be received in trust for the benefit
                  of Secured  Party,  shall be  segregated  from other  funds of
                  Debtor and shall be  forthwith  paid over to Secured  Party as
                  Collateral in the same form as so received (with any necessary
                  endorsement).

                           (iv) Debtor shall execute and deliver (or cause to be
                  executed and  delivered) to Secured Party all such proxies and
                  other instruments as Secured Party may request for the purpose
                  of enabling  Secured  Party to  exercise  the voting and other
                  rights  which it is  entitled  to  exercise  pursuant  to this
                  Section  4.5(b) and to receive  the  dividends,  interest  and
                  other distributions which it is entitled to receive and retain
                  pursuant to this Section  4.5(b).  The foregoing  shall not in
                  any way limit  Secured  Party's  power and  authority  granted
                  pursuant to Section 5.1.

         Section 4.6       Transfers and Other Liens; Additional Investments.

                  (a) Except as may be  expressly  permitted by the terms of the
         Credit  Agreement,  Debtor  shall not grant any option with respect to,
         exchange,  sell or otherwise dispose of any

                                       9
<PAGE>

         of the  Collateral  or  create or permit to exist any Lien upon or with
         respect to any of the  Collateral  except for the Liens created  hereby
         and Permitted Liens.

                  (b) Debtor  agrees that it will (i) cause the  Borrower not to
         issue any Capital  Stock,  notes or other  securities or instruments in
         addition to or in substitution  for any of the Pledged  Shares,  except
         (A) with prior written notice to Secured  Party,  to Debtor or (B) with
         the written  consent of Secured Party, to any Person other than Debtor,
         (ii) pledge  hereunder,  immediately upon its acquisition  (directly or
         indirectly)  thereof,  any and all such Capital  Stock,  notes or other
         securities or instruments,  and (iii) promptly (and in any event within
         three  Business  Days)  deliver to  Secured  Party an  Amendment,  duly
         executed  by  Debtor,  in  substantially  the  form  of  Exhibit  A (an
         "Amendment"),  in  respect  of  such  Capital  Stock,  notes  or  other
         securities or  instruments,  together with all  certificates,  notes or
         other  securities or instruments  representing  or evidencing the same.
         Debtor hereby (1) authorizes  Secured Party to attach each Amendment to
         this Agreement,  (2) agrees that all such Capital Stock, notes or other
         securities or instruments listed on any Amendment  delivered to Secured
         Party shall for all purposes  hereunder  constitute Pledged Shares, and
         (3) is deemed to have made, upon such delivery, the representations and
         warranties contained in Article 3 with respect to such Pledged Shares.

         Section  4.7  Possession;  Reasonable  Care.  Regardless  of  whether a
Default or an Event of Default has  occurred  or is  continuing,  Secured  Party
shall  have the right to hold in its  possession  all  Pledged  Shares  pledged,
assigned or transferred  hereunder and from time to time  constituting a portion
of the Collateral. Secured Party may, from time to time, in its sole discretion,
appoint one or more agents  (which in no case shall be Debtor or an Affiliate of
Debtor) to hold physical  custody,  for the account of Secured Party,  of any or
all of the  Pledged  Shares.  Secured  Party  shall be deemed to have  exercised
reasonable  care in the custody and  preservation  of the Pledged  Shares in its
possession if the Pledged Shares are accorded treatment  substantially  equal to
that which  Secured Party accords its own  Property,  it being  understood  that
Secured Party shall not have any  responsibility  for (a) ascertaining or taking
action with respect to calls,  conversions,  exchanges,  maturities,  tenders or
other matters  relative to any Pledged Shares,  whether or not Secured Party has
or is deemed to have  knowledge  of such  matters,  or (b) taking any  necessary
steps to preserve  rights  against any parties with  respect to any  Collateral.
Following the  occurrence  and during the  continuation  of an Event of Default,
Secured Party shall be entitled to take possession of all Collateral.

                                       10
<PAGE>

                                    ARTICLE 5

                             Rights of Secured Party
                             -----------------------

         Section 5.1 Power of Attorney.  Debtor hereby  irrevocably  constitutes
and appoints Secured Party and any officer or agent thereof,  with full power of
substitution,  as its true and  lawful  attorney-in-fact  with full  irrevocable
power and authority in the name of Debtor or in its own name, to take, after the
occurrence and during the continuance of an Event of Default, any and all action
and to execute any and all documents and instruments  which Secured Party at any
time and from time to time  deems  necessary  or  desirable  to  accomplish  the
purposes  of  this  Agreement  and,  without  limiting  the  generality  of  the
foregoing,  Debtor  hereby gives  Secured Party the power and right on behalf of
Debtor and in its own name to do any of the following  after the  occurrence and
during the continuance of an Event of Default,  without notice to or the consent
of Debtor:

                  (a) to demand,  sue for,  collect or  receive,  in the name of
         Debtor or in its own name, any money or Property at any time payable or
         receivable on account of or in exchange for any of the Collateral  and,
         in connection therewith,  endorse checks,  notes, drafts,  acceptances,
         money  orders,  documents  of title or any  other  instruments  for the
         payment of money under the Collateral;

                  (b) to pay or  discharge  taxes,  Liens or other  encumbrances
         levied or placed on or threatened against the Collateral;

                  (c) (i) to  receive  payment  of and  receipt  for any and all
         monies,  claims and other  amounts due and to become due at any time in
         respect of or arising out of any  Collateral;  (ii) to sign and endorse
         any  assignments,  proxies,  stock  powers,  verifications  and notices
         relating to the  Collateral;  (iii) to commence and prosecute any suit,
         action or  proceeding  at law or in  equity  in any court of  competent
         jurisdiction  to collect  the  Collateral  or any part  thereof  and to
         enforce  any other right in respect of any  Collateral;  (iv) to defend
         any suit,  action or proceeding  brought against Debtor with respect to
         any Collateral; (v) to settle, compromise or adjust any suit, action or
         proceeding described above and, in connection  therewith,  to give such
         discharges or releases as Secured Party may deem  appropriate;  (vi) to
         exchange  any of the  Collateral  for other  Property  upon any merger,
         consolidation,  reorganization,  recapitalization or other readjustment
         of the  Borrower  and,  in  connection  therewith,  deposit  any of the
         Collateral with any committee, depositary, transfer agent, registrar or
         other designated agency upon such terms as Secured Party may determine;
         (vii) to add or release any guarantor,  indorser, surety or other party
         to any of the Collateral;  (viii) to renew,  extend or otherwise change
         the  terms  and  conditions  of any of the  Collateral;  (ix) to  make,
         settle,  compromise  or adjust any claims under or pertaining to any of
         the Collateral;  and (x) to sell,  transfer,  pledge,  convey, make any
         agreement  with respect to or otherwise deal with any of the Collateral
         as fully and completely as though Secured Party were the absolute owner
         thereof  for all  purposes,  and to do, at Secured  Party's  option and
         Debtor's expense, at any

                                       11
<PAGE>

         time,  or from time to time,  all acts and things which  Secured  Party
         deems  necessary  to protect,  preserve,  maintain or realize  upon the
         Collateral and Secured Party's security interest therein.

         This power of attorney is a power coupled with an interest and shall be
irrevocable  until this  Agreement is terminated  in accordance  with its terms.
Secured Party shall be under no duty to exercise or withhold the exercise of any
of the rights, powers, privileges and options expressly or implicitly granted to
Secured Party in this  Agreement,  and shall not be liable for any failure to do
so or any delay in doing so. Neither Secured Party nor any Person  designated by
Secured  Party  shall be  liable  for any act or  omission  or for any  error of
judgment  or any mistake of fact or law except for gross  negligence  or willful
misconduct  or as set forth in Section 4.7.  This power of attorney is conferred
on Secured  Party  solely to protect,  preserve,  maintain  and realize upon its
security interest in the Collateral.  Secured Party shall not be responsible for
any decline in the value of the Collateral and shall not be required to take any
steps to  preserve  rights  against  prior  parties or to  protect,  preserve or
maintain any Lien given to secure the Collateral.

         Section  5.2  Performance  by Secured  Party.  If Debtor  shall fail to
perform any covenant or agreement contained in this Agreement, Secured Party may
perform or attempt to perform such covenant or agreement on behalf of Debtor. In
such event,  Debtor  shall,  at the request of Secured  Party,  promptly pay any
amount  expended  by  Secured  Party in  connection  with  such  performance  or
attempted  performance to Secured Party,  together with interest  thereon at the
Default Rate from and  including the date of such  expenditure  to but excluding
the date such expenditure is paid in full.  Notwithstanding the foregoing, it is
expressly   agreed  that  Secured   Party  shall  not  have  any   liability  or
responsibility for the performance of any indebtedness,  liability or obligation
of Debtor under this Agreement.

                                    ARTICLE 6

                                     Default
                                     -------

         Section  6.1 Rights  and  Remedies.  If an Event of Default  shall have
occurred and be  continuing,  Secured Party shall have the following  rights and
remedies with respect to the Collateral (subject to Section 6.3):

                  (a) In addition to all other  rights and  remedies  granted to
         Secured  Party in this  Agreement  or in any other Loan  Document or by
         applicable law, Secured Party shall have all of the rights and remedies
         of a secured party under the UCC (whether or not the UCC applies to the
         affected  Collateral) and Secured Party may also, without notice except
         as specified  below,  sell the Collateral or any part thereof in one or
         more parcels at public or private sale, at any exchange, broker's board
         or at any of Secured Party's offices or elsewhere,  for cash, on credit
         or for future delivery,  and upon such other terms as Secured Party may
         deem

                                       12
<PAGE>

         commercially  reasonable  or  otherwise  as may be  permitted  by  law.
         Without  limiting the  generality of the  foregoing,  Secured Party may
         sell,  lease  or  otherwise  dispose  of the  Collateral,  or any  part
         thereof,  in one or more parcels at public or private sale or sales, at
         Secured Party's offices or elsewhere, for cash, on credit or for future
         delivery,  and  upon  such  other  terms  as  Secured  Party  may  deem
         commercially  reasonable  or  otherwise  as may be  permitted  by  law.
         Secured Party shall have the right at any public sale or sales, and, to
         the extent  permitted by applicable  law, at any private sale or sales,
         to bid  (which  bid  may  be,  in  whole  or in  part,  in the  form of
         cancellation of indebtedness)  and become a purchaser of the Collateral
         or any part  thereof free of any right or equity of  redemption  on the
         part of Debtor, which right or equity of redemption is hereby expressly
         waived and  released  by  Debtor.  Upon the  request of Secured  Party,
         Debtor shall  assemble the  Collateral and make it available to Secured
         Party at any place  designated  by  Secured  Party  that is  reasonably
         convenient  to Debtor and Secured  Party.  Debtor  agrees that  Secured
         Party shall not be obligated to give more than five days prior  written
         notice of the time and place of any  public  sale or of the time  after
         which  any  private  sale may take  place and that  such  notice  shall
         constitute  reasonable notice of such matters.  Secured Party shall not
         be obligated to make any sale of Collateral  if it shall  determine not
         to do so,  regardless of the fact that notice of sale of Collateral may
         have been given.  Secured  Party may,  without  notice or  publication,
         adjourn  any public or private  sale or cause the same to be  adjourned
         from time to time by announcement at the time and place fixed for sale,
         and such  sale may,  without  further  notice,  be made at the time and
         place to which the same was so  adjourned.  Debtor  shall be liable for
         all expenses of retaking,  holding, preparing for sale or the like, and
         all  attorneys'  fees,  legal  expenses  and other  costs and  expenses
         incurred by Secured  Party in  connection  with the  collection  of the
         Obligations  and the  enforcement of Secured  Party's rights under this
         Agreement.  Debtor  shall  remain  liable  for  any  deficiency  if the
         Proceeds of any sale or other disposition of the Collateral  applied to
         the  Obligations  are  insufficient  to pay the  Obligations  in  full.
         Secured Party may apply the Collateral  against the Obligations in such
         order and  manner as  Secured  Party may elect in its sole  discretion.
         Debtor  waives all rights of  marshaling,  valuation  and  appraisal in
         respect of the Collateral. Any cash held by Secured Party as Collateral
         and all cash proceeds  received by Secured Party in respect of any sale
         of,  collection from or other  realization  upon all or any part of the
         Collateral  may, in the discretion of Secured Party, be held by Secured
         Party as collateral for, and then or at any time thereafter  applied in
         whole or in part by Secured  Party  against,  the  Obligations  in such
         order as Secured Party shall  select.  Any surplus of such cash or cash
         proceeds and interest  accrued  thereon,  if any, held by Secured Party
         and  remaining  after payment in full of all the  Obligations  shall be
         paid  over to Debtor  or to  whomsoever  may be  lawfully  entitled  to
         receive  such  surplus;  provided  that  Secured  Party  shall  have no
         obligation  to invest or otherwise  pay interest on any amounts held by
         it in connection with or pursuant to this Agreement.

                                       13
<PAGE>

                  (b) Secured Party may cause any or all of the Collateral  held
         by it to be  transferred  into the name of Secured Party or the name or
         names of Secured Party's nominee or nominees.

                  (c) Secured Party may exercise any and all rights and remedies
         of Debtor  under or in respect of the  Collateral,  including,  without
         limitation, any and all rights of Debtor to demand or otherwise require
         payment of any amount under, or performance of any provision of, any of
         the  Collateral  and any and all voting rights and corporate  powers in
         respect of the Collateral.

                  (d) Secured Party may collect or receive all money or property
         at any time payable or  receivable on account of or in exchange for any
         of the Collateral, but shall be under no obligation to do so.

                  (e) On any sale of the  Collateral,  Secured  Party is  hereby
         authorized  to comply with any  limitation  or  restriction  with which
         compliance is necessary,  in the view of Secured  Party's  counsel,  in
         order to avoid any  violation of  applicable  law or in order to obtain
         any required  approval of the purchaser or purchasers by any applicable
         Governmental Authority.

         Section 6.2       Registration Rights, Private Sales, Etc.

                  (a) If Secured Party shall  determine to exercise its right to
         sell all or any of the  Collateral  pursuant  to  Section  6.1,  Debtor
         agrees that,  upon the request of Secured  Party (which  request may be
         made by Secured Party in its sole discretion),  Debtor will, at its own
         expense:

                           (i) execute and  deliver,  and cause the Borrower and
                  the directors and officers thereof to execute and deliver, all
                  such agreements, documents and instruments, and do or cause to
                  be done all such other acts and things,  as may be  reasonably
                  necessary  or, in the  reasonable  opinion of  Secured  Party,
                  advisable to register such Collateral  under the provisions of
                  the Securities Act (as  hereinafter  defined) and use its best
                  efforts to cause the registration  statement  relating thereto
                  to become effective and to remain effective for such period as
                  prospectuses  are required by law to be furnished  and to make
                  all  amendments  and  supplements  thereto  and to the related
                  prospectus  which,  in  the  opinion  of  Secured  Party,  are
                  necessary   or   advisable,   all  in   conformity   with  the
                  requirements   of  the   Securities  Act  and  the  rules  and
                  regulations  of  the   Securities   and  Exchange   Commission
                  applicable thereto;

                           (ii) if reasonably  necessary  or, in the  reasonable
                  opinion of Secured Party,  advisable,  use its best efforts to
                  qualify such Collateral  under all applicable state securities
                  or "Blue  Sky" laws and to obtain all  necessary  governmental
                  approvals  for the sale of such  Collateral,  as  requested by
                  Secured Party;

                                       14
<PAGE>

                           (iii) if reasonably  necessary or, in the  reasonable
                  opinion of Secured  Party,  advisable,  cause the  Borrower to
                  make   available   to  its  security   holders,   as  soon  as
                  practicable,  an  earnings  statement  which will  satisfy the
                  provisions of Section 11(a) of the Securities Act;

                           (iv) do or cause to be done all such  other  acts and
                  things as may be reasonably  necessary or  appropriate to make
                  such  sale of the  Collateral  or any part  thereof  valid and
                  binding and in compliance with applicable law; and

                           (v) bear all reasonable costs and expenses, including
                  reasonable  attorneys'  fees, of carrying out its  obligations
                  under this Section 6.2.

                  (b)  Debtor  recognizes  that  Secured  Party may be unable to
         effect a  public  sale of any or all of the  Collateral  by  reason  of
         certain  prohibitions  contained  in the  Securities  Act of  1933,  as
         amended from time to time (the  "Securities  Act") and applicable state
         securities  laws but may be  compelled to resort to one or more private
         sales thereof to a restricted  group of purchasers  who will be obliged
         to agree,  among other things, to acquire such Collateral for their own
         account  for  investment  and not  with a view to the  distribution  or
         resale thereof.  Debtor  acknowledges  and agrees that any such private
         sale may result in prices and other terms less  favorable to the seller
         than  if  such  sale  were a  public  sale  and,  notwithstanding  such
         circumstances,  agrees that any such private sale shall,  to the extent
         permitted  by law,  be  deemed  to  have  been  made in a  commercially
         reasonable manner. Neither Secured Party nor the Lenders shall be under
         any  obligation to delay a sale of any of the Collateral for the period
         of time  necessary to permit the Borrower to register  such  securities
         under the Securities Act or under any applicable state securities laws,
         even if the Borrower would agree to do so.

                  (c) Debtor  further  agrees to do or cause to be done,  to the
         extent that Debtor may do so under  applicable law, all such other acts
         and  things as may be  necessary  to make such  sales or resales of any
         portion or all of the  Collateral  valid and binding and in  compliance
         with  any  and  all  applicable  laws,   regulations,   orders,  writs,
         injunctions,  decrees or awards of any and all courts,  arbitrators  or
         governmental    instrumentalities,    domestic   or   foreign,   having
         jurisdiction  over any such sale or  sales,  all at  Debtor's  expense.
         Debtor further  agrees that a breach of any of the covenants  contained
         in this Section 6.2 will cause irreparable  injury to Secured Party and
         the Lenders  and that  Secured  Party and the Lenders  have no adequate
         remedy at law in respect of such breach and, as a  consequence,  agrees
         that each and every  covenant  contained  in this  Section 6.2 shall be
         specifically  enforceable  against Debtor, and Debtor hereby waives and
         agrees,  to the fullest  extent  permitted  by law,  not to assert as a
         defense  against an action for specific  performance  of such covenants
         that (i)  Debtor's  failure to perform  such  covenants  will not cause
         irreparable  injury to Secured  Party and the  Lenders or (ii)  Secured
         Party and the Lenders have an adequate remedy at law in respect of such

                                       15
<PAGE>

         breach.  Debtor further  acknowledges the impossibility of ascertaining
         the amount of damages  which would be suffered by Secured Party and the
         Lenders by reason of a breach of any of the covenants contained in this
         Section 6.2 and, consequently,  agrees that, if Debtor shall breach any
         of such covenants and Secured Party or any Lender shall sue for damages
         for such breach,  Debtor shall pay to Secured Party or such Lender,  as
         liquidated  damages and not as a penalty,  an aggregate amount equal to
         the value of the  Collateral  on the date Secured  Party or such Lender
         shall demand compliance with this Section 6.2.

                  (d)  DEBTOR  HEREBY  AGREES  TO  INDEMNIFY,  PROTECT  AND SAVE
         HARMLESS  SECURED  PARTY AND THE  LENDERS AND ANY  CONTROLLING  PERSONS
         THEREOF  WITHIN THE MEANING OF THE  SECURITIES ACT FROM AND AGAINST ANY
         AND ALL  LIABILITIES,  SUITS,  CLAIMS,  COSTS AND  EXPENSES  (INCLUDING
         COUNSEL FEES AND  DISBURSEMENTS)  ARISING UNDER THE SECURITIES ACT, THE
         SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED,  ANY APPLICABLE  STATE
         SECURITIES  STATUTE,  OR AT  COMMON  LAW,  OR  PURSUANT  TO  ANY  OTHER
         APPLICABLE  LAW IN  CONNECTION  WITH THE SALE OF ANY  SECURITIES OR THE
         EXERCISE OF ANY OTHER RIGHT OR REMEDY OF SECURED PARTY, INSOFAR AS SUCH
         LIABILITIES,  SUITS,  CLAIMS,  COSTS AND EXPENSES  ARISE OUT OF, OR ARE
         BASED UPON,  ANY UNTRUE  STATEMENT  OR ALLEGED  UNTRUE  STATEMENT  OF A
         MATERIAL  FACT MADE BY ANY LOAN  PARTY IN  CONNECTION  WITH THE SALE OR
         PROPOSED  SALE OF ANY PART OF THE  COLLATERAL,  OR ARISES OUT OF, OR IS
         BASED UPON, THE OMISSION OR ALLEGED OMISSION BY ANY LOAN PARTY TO STATE
         A  MATERIAL  FACT  REQUIRED  TO BE STATED IN  CONNECTION  THEREWITH  OR
         NECESSARY  TO  MAKE  THE  STATEMENTS  MADE  NOT  MISLEADING;  PROVIDED,
         HOWEVER, THAT DEBTOR SHALL NOT BE LIABLE IN ANY SUCH CASE TO THE EXTENT
         THAT ANY SUCH LIABILITIES,  SUITS, CLAIMS, COSTS AND EXPENSES ARISE OUT
         OF, OR ARE BASED UPON, ANY UNTRUE STATEMENT OR ALLEGED UNTRUE STATEMENT
         OR OMISSION OR ALLEGED OMISSION MADE IN RELIANCE UPON AND IN CONFORMITY
         WITH WRITTEN  INFORMATION  FURNISHED TO DEBTOR BY SECURED  PARTY OR ANY
         LENDER  SPECIFICALLY  FOR  INCLUSION  IN  CONNECTION   THEREWITH.   THE
         FOREGOING  INDEMNITY  AGREEMENT  IS IN  ADDITION  TO ANY  INDEBTEDNESS,
         LIABILITY  OR  OBLIGATION  THAT  DEBTOR MAY  OTHERWISE  HAVE TO SECURED
         PARTY, ANY LENDER OR ANY CONTROLLING PERSON THEREOF.

         Section  6.3  Compliance  with Laws.  Notwithstanding  anything  to the
contrary contained in any Loan Document or in any other agreement, instrument or
document  executed by Debtor and delivered to Secured Party,  Secured Party will
not take any action  pursuant  to this  Agreement  or any  document  referred to
herein  which would  constitute  or result in any change of control  (whether de
jure or de facto) of  Borrower if such change of control  would  require,  under
then existing law, the

                                       16
<PAGE>

prior  approval of the FCC or any other  Governmental  Authority  without  first
obtaining such prior approval of the FCC or other Governmental  Authority.  Upon
the  occurrence  of an Event of  Default  or at any time  thereafter  during the
continuance  thereof,  subject to the terms and  conditions  of this  Agreement,
Debtor  agrees to take any action  which  Secured  Party may request in order to
obtain from the FCC or such other Governmental Authority such approval as may be
necessary  to enable  Secured  Party to  exercise  and enjoy the full rights and
benefits  granted to Secured  Party by this  Agreement  and the other  documents
referred to above,  including  specifically,  at the cost and expense of Debtor,
the use of Debtor's  best efforts to assist in obtaining  approval of the FCC or
such other Governmental Authority for any action or transaction  contemplated by
this  Agreement  for which such  approval is or shall be  required  by law,  and
specifically,  without limitation,  upon request, to prepare, sign and file with
the FCC or such other  Governmental  Authority the  assignor's  or  transferor's
portion of any  application  or  applications  for consent to the  assignment of
license or transfer of control  necessary or appropriate under the FCC's or such
other  Governmental  Authority's  rules and  regulations for approval of (a) any
sale or other disposition of the Collateral by or on behalf of Secured Party, or
(b) any assumption by Secured Party of voting rights in the Collateral  effected
in accordance with the terms of this Agreement.

                                    ARTICLE 7

                                  Miscellaneous
                                  -------------

         Section 7.1 No Waiver;  Cumulative Remedies.  No failure on the part of
Secured Party to exercise and no delay in  exercising,  and no course of dealing
with  respect  to, any right,  power or  privilege  under this  Agreement  shall
operate as a waiver  thereof,  nor shall any single or partial  exercise  of any
right,  power or privilege  under this  Agreement  preclude any other or further
exercise  thereof or the exercise of any other right,  power or  privilege.  The
rights and  remedies  provided  for in this  Agreement  are  cumulative  and not
exclusive of any rights and remedies provided by law.

         Section 7.2  Successors and Assigns.  This  Agreement  shall be binding
upon and inure to the benefit of Debtor and Secured  Party and their  respective
heirs,  successors and permitted assigns,  except that Debtor may not assign any
of its rights,  indebtedness,  liabilities or  obligations  under this Agreement
without the prior written consent of Secured Party.

         Section 7.3 Entire Agreement;  Amendment . THIS AGREEMENT  EMBODIES THE
FINAL,  ENTIRE  AGREEMENT  AMONG THE PARTIES  HERETO AND  SUPERSEDES ANY AND ALL
PRIOR  COMMITMENTS,  AGREEMENTS,  REPRESENTATIONS  AND  UNDERSTANDINGS,  WHETHER
WRITTEN  OR  ORAL,  RELATING  TO  THE  SUBJECT  MATTER  HEREOF  AND  MAY  NOT BE
CONTRADICTED OR VARIED BY EVIDENCE OF PRIOR,  CONTEMPORANEOUS OR SUBSEQUENT ORAL
AGREEMENTS OR  DISCUSSIONS  OF THE PARTIES  HERETO.  THERE ARE NO UNWRITTEN ORAL
AGREEMENTS  AMONG THE PARTIES  HERETO.  The  provisions of this Agreement may be
amended or waived only by an instrument in writing signed by the parties hereto.

                                       17
<PAGE>

         Section 7.4 Notices. All notices and other communications  provided for
in this  Agreement  shall be given or made,  and shall be deemed  effective,  as
provided in the Credit Agreement.

         Section 7.5  Governing  Law;  Submission  to  Jurisdiction;  Service of
Process.  EXCEPT  AS MAY BE  EXPRESSLY  STATED  TO THE  CONTRARY  IN THE  CREDIT
AGREEMENT,  THIS  AGREEMENT  SHALL BE GOVERNED BY, AND  CONSTRUED IN  ACCORDANCE
WITH,  THE LAWS OF THE STATE OF NEW YORK  (WITHOUT  REGARD TO  CONFLICTS OF LAWS
PRINCIPLES)  AND EACH OF THE PARTIES  HERETO CHOOSE THE LAWS OF THE STATE OF NEW
YORK TO GOVERN THIS AGREEMENT  PURSUANT TO N.Y. GEN.  OBLIG.  LAW SECTION 5-1401
(CONSOL.  1995) AND  APPLICABLE  LAWS OF THE U.S.  DEBTOR HEREBY  SUBMITS TO THE
NON-EXCLUSIVE  JURISDICTION  OF EACH  OF (A) THE  U.S.  DISTRICT  COURT  FOR THE
SOUTHERN DISTRICT OF NEW YORK, (B) ANY NEW YORK STATE COURT SITTING IN NEW YORK,
NEW YORK, (C) THE U.S.  DISTRICT COURT FOR THE NORTHERN  DISTRICT OF TEXAS,  AND
(D) ANY TEXAS STATE COURT SITTING IN DALLAS COUNTY,  TEXAS,  FOR THE PURPOSES OF
ALL LEGAL  PROCEEDINGS  ARISING OUT OF OR RELATING TO THIS AGREEMENT,  ANY OTHER
LOAN  DOCUMENT  OR THE  TRANSACTIONS  CONTEMPLATED  HEREBY  OR  THEREBY.  DEBTOR
IRREVOCABLY CONSENTS TO THE SERVICE OF ANY AND ALL PROCESS IN ANY SUCH ACTION OR
PROCEEDING BY THE MAILING OF COPIES OF SUCH PROCESS TO DEBTOR AT ITS ADDRESS FOR
NOTICES SET FORTH  UNDERNEATH ITS SIGNATURE  HERETO.  DEBTOR HEREBY  IRREVOCABLY
WAIVES,  TO THE FULLEST EXTENT  PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY NOW
OR HEREAFTER HAVE TO THE LAYING OF THE VENUE OF ANY SUCH  PROCEEDING  BROUGHT IN
SUCH A COURT AND ANY CLAIM THAT ANY SUCH PROCEEDING  BROUGHT IN SUCH A COURT HAS
BEEN BROUGHT IN AN INCONVENIENT FORUM.

         Section 7.6 Headings.  The headings,  captions and arrangements used in
this Agreement are for convenience only and shall not affect the  interpretation
of this Agreement.

         Section  7.7   Survival  of   Representations   and   Warranties.   All
representations  and  warranties  made in this  Agreement or in any  certificate
delivered  pursuant  hereto  shall  survive the  execution  and delivery of this
Agreement,   and  no   investigation   by  Secured   Party   shall   affect  the
representations and warranties or the right of Secured Party to rely upon them.

         Section 7.8 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.

                                       18
<PAGE>

         Section 7.9 Waiver of Bond.  In the event  Secured  Party seeks to take
possession of any or all of the  Collateral by judicial  process,  Debtor hereby
irrevocably  waives any bonds and any surety or security  relating  thereto that
may be required by applicable law as an incident to such possession,  and waives
any demand for possession prior to the commencement of any such suit or action.

         Section 7.10  Severability.  Any provision of this  Agreement  which is
determined   by  a  court  of  competent   jurisdiction   to  be  prohibited  or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability  without  invalidating the
remaining   provisions  of  this   Agreement,   and  any  such   prohibition  or
unenforceability   in  any   jurisdiction   shall  not   invalidate   or  render
unenforceable such provision in any other jurisdiction.

         Section 7.11  Construction.  Debtor and Secured Party  acknowledge that
each of them has had the benefit of legal counsel of its own choice and has been
afforded an opportunity to review this Agreement with its legal counsel and that
this  Agreement  shall be construed as if jointly  drafted by Debtor and Secured
Party.

         Section 7.12  Termination.  If all of the  Obligations  shall have been
paid and performed in full and all Commitments of the Lenders shall have expired
or terminated, Secured Party shall, upon the written request of Debtor, promptly
execute and deliver to Debtor a proper  instrument or instruments  acknowledging
the release and termination of the security interests created by this Agreement,
and shall duly assign and deliver to Debtor  (without  recourse  and without any
representation  or  warranty,  except  as may be set  forth in  Section  4.7 and
Section 5.1) such of the Collateral as may be in the possession of Secured Party
and  has  not  previously  been  sold  or  otherwise  applied  pursuant  to this
Agreement.

         Section 7.13 Waiver of Jury Trial.  TO THE FULLEST EXTENT  PERMITTED BY
APPLICABLE  LAW,  EACH OF THE PARTIES  HERETO HEREBY  IRREVOCABLY  AND EXPRESSLY
WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION,  PROCEEDING  OR  COUNTERCLAIM
(WHETHER BASED UPON CONTRACT,  TORT OR OTHERWISE)  ARISING OUT OF OR RELATING TO
THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THE ACTIONS OF SECURED
PARTY IN THE NEGOTIATION, ADMINISTRATION OR ENFORCEMENT THEREOF.

        [The remainder of this page has been intentionally left blank.]

                                       19
<PAGE>

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

                        DEBTOR:

                        SAVVIS COMMUNICATIONS CORPORATION,
                        a Delaware corporation

                        By:    /s/ David J. Frear
                               -------------------------------------------------
                        Name:  David J. Frear

                        Title: Executive Vice President, Chief Financial Officer

                        SECURED PARTY:
                        -------------

                        NORTEL NETWORKS INC.,
                        as Administrative Agent

                        By:    /s/ Mitchell L. Stone
                               -------------------------------------------------
                        Name:  Mitchell L. Stone
                        Title: Director, Customer Finance

                                       20
<PAGE>

STATE OF Virginia
         --------
                                  ss.
COUNTY OF Fairfax
          -------

         This instrument was acknowledged  before me this 14th day of September,
2000, by David J. Frear, the Executive Vice President,  Chief Financial  Officer
of SAVVIS COMMUNICATIONS  CORPORATION, a Delaware corporation, on behalf of such
corporation.

         [SEAL]                   /s/ Inga C. Tracy
                                  -----------------
                                  Notary Public in and for the State of Virginia
                                  Print Name: Inga C. Tracy

My commission expires: 30 April 2004
                      --------------

STATE OF Texas   ss.
         -----
                                  ss.
COUNTY OF Dallas ss.
          ------

         This instrument was acknowledged  before me this 13th day of September,
2000, by Mitchell L. Stone,  the Director,  Customer  Finance of NORTEL NETWORKS
INC., a Delaware corporation, on behalf of such corporation.

         [SEAL]                   /s/ Diana L. Irish
                                  ------------------
                                  Notary Public in and for the State of Texas
                                  Print Name: Diana L. Irish

My commission expires: 7/05/02
                      --------

<PAGE>

                                   SCHEDULE 1

                              TRADE AND OTHER NAMES

         Savvis Holdings Corporation
         Savvis Acquisition Corp.

<PAGE>

                                   SCHEDULE 2

                                 PLEDGED SHARES

<TABLE>
<CAPTION>
========================= ========================= ================= =================== ==========================

                                                                                                Percentage of
                                                                       Number of Shares     Outstanding Shares or
        Class of                                                         or Interests             Interests
     Capital Stock           Certificate No(s).        Par Value

========================= ========================= ================= =================== ==========================
<S>                                  <C>                 <C>              <C>                       <C>
         Common                     R41                  $.001            1,606,682                 100%

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

========================= ========================= ================= =================== ==========================
</TABLE>

<PAGE>

                                    EXHIBIT A
                                    ---------

                                FORM OF AMENDMENT

<PAGE>

                          AMENDMENT TO PLEDGE AGREEMENT
                          -----------------------------

         This Amendment, dated _______________,  _____, is delivered pursuant to
Section 4.6(b) of the Pledge Agreement referred to below. The undersigned hereby
agrees that this  Amendment  may be attached to that certain  Pledge  Agreement,
dated as of September 5, 2000 (the "Pledge Agreement"),  between the undersigned
and Nortel Networks Inc., as Secured Party, and that the Capital Stock listed on
Schedule 1 annexed hereto shall be and become part of the Collateral referred to
in the  Pledge  Agreement  and  shall  secure  payment  and  performance  of all
Obligations as provided in the Pledge Agreement.

         Capitalized  terms used  herein but not defined  herein  shall have the
meanings therefor provided in the Pledge Agreement.

                                              SAVVIS COMMUNICATIONS CORPORATION,
                                              a Delaware corporation

                                              By: ______________________________
                                              Name: ____________________________
                                              Title: ___________________________

<PAGE>

                                   Schedule 1

                                       to

                          Amendment to Pledge Agreement
                          -----------------------------

<TABLE>
<CAPTION>
========================= ========================= ================= =================== ==========================

                                                                                                Percentage of

                                                                       Number of Shares     Outstanding Shares or
        Class of                                                         or Interests             Interests
     Capital Stock           Certificate No(s).        Par Value

========================= ========================= ================= =================== ==========================
------------------------- ------------------------- ----------------- ------------------- --------------------------
<S>                       <C>                       <C>               <C>                 <C>

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

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

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

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

========================= ========================= ================= =================== ==========================
</TABLE>EXHIBIT 10.3

                              AMENDED AND RESTATED
                          PLEDGE AND SECURITY AGREEMENT
                          -----------------------------
                       (Savvis Communications Corporation)

             THIS INSTRUMENT GRANTS A SECURITY INTEREST BY A UTILITY
          THIS INSTRUMENT CONTAINS AN AFTER-ACQUIRED PROPERTY PROVISION

         THIS AMENDED AND RESTATED PLEDGE AND SECURITY  AGREEMENT  ("Agreement")
dated  as  of  September  5,  2000,  is by  and  between  Savvis  Communications
Corporation, a Missouri corporation ("Debtor"), whose address is 12851 Worldgate
Drive,  Herndon,  Virginia 20170 and whose Tax I.D. No. is 43-1727675 and Nortel
Networks Inc., a Delaware corporation ("Secured Party"), as Administrative Agent
for the "Lenders", as that term is defined below, whose address is 2221 Lakeside
Blvd., Richardson, Texas 75082-4399.

                                R E C I T A L S:
                                ----------------

         A.       Subject to the terms of that certain Credit Agreement dated as
of June 30, 2000, among Debtor,  Savvis Communications  Corporation,  a Delaware
corporation  ("Holdings"),  certain  of  the  Lenders  and  Secured  Party  (the
"Original  Credit  Agreement"),  certain of the Lenders  extended certain credit
facilities to Debtor. As a condition to the effectiveness of the Original Credit
Agreement,  Debtor  executed  and  delivered  that  certain  Pledge and Security
Agreement dated as of June 30, 2000 (the "Original Security Agreement") pursuant
to which Debtor  granted Liens on certain of Debtor's  assets and  properties to
secure payment and performance of the  "Obligations"  as such term is defined in
the Original Credit Agreement.

         B.       Pursuant to that certain Amended and Restated Credit Agreement
dated as of September 5, 2000, among Debtor, Holdings, the lenders named therein
(together with their  successors  and assigns,  the "Lenders") and Secured Party
(as such  agreement  may be  amended,  renewed,  extended,  restated,  replaced,
substituted,  supplemented or otherwise  modified from time to time, the "Credit
Agreement"),  the Original Credit  Agreement is,  concurrently  herewith,  being
amended and restated.

         C.       The  execution  and delivery of this  Agreement is required by
the terms of the Credit  Agreement and is a condition to the availability of the
Loans to Debtor pursuant to the Credit Agreement.

         NOW, THEREFORE, in consideration of the premises and for other good and
valuable  consideration,  the  adequacy,  receipt and  sufficiency  of which are
hereby acknowledged,  and in order to induce the Lenders to make the Loans under
the Credit Agreement, the parties hereto hereby agree as follows:

<PAGE>

                                    ARTICLE 1

                                   Definitions

         Section 1.1 Definitions. As used in this Agreement, the following terms
have the following meanings:

                  "Account"  means any  "account",  as such term is  defined  in
         Article or Chapter 9 of the UCC,  now owned or  hereafter  acquired  by
         Debtor and, in any event, shall include,  without  limitation,  each of
         the following,  whether now owned or hereafter  acquired by Debtor: (a)
         all  rights of Debtor to payment  for goods  sold or  leased,  services
         rendered or the license of Intellectual Property, whether or not earned
         by performance;  (b) all accounts  receivable of Debtor; (c) all rights
         of  Debtor  to  receive   any   payment  of  money  or  other  form  of
         consideration,  including, without limitation, all Payment Intangibles;
         (d) all security  pledged,  assigned or granted to or held by Debtor to
         secure any of the foregoing; (e) all guaranties of, or indemnifications
         with respect to, any of the  foregoing;  (f) all rights of Debtor as an
         unpaid seller of goods or services,  including, but not limited to, all
         rights of stoppage in transit,  replevin,  reclamation and resale;  (g)
         all  rights to  brokerage  commissions;  and (h) all  other  Supporting
         Obligations, including any applicable Letter of Credit Rights.

                  "Amendment" has the meaning specified in Section 4.17(b).

                  "Broker"  means  any  "broker,"  as such  term is  defined  in
         Article or Chapter 8 of the UCC,  and in any event shall  include,  but
         not be limited to, any Person  defined as a broker or dealer  under the
         federal  securities  laws, but without  excluding a bank acting in that
         capacity.

                  "Capital   Stock"  means  corporate  stock  and  any  and  all
         securities,  shares,  partnership interests (whether general,  limited,
         special or other  partnership  interests),  limited  liability  company
         interests,  membership  interests,  equity  interests,  participations,
         rights or other equivalents  (however designated) of corporate stock or
         any of the foregoing  issued by any entity  (whether a  corporation,  a
         partnership,  a  limited  liability  company  or  another  entity)  and
         includes, without limitation, securities convertible into Capital Stock
         and rights, warrants or options to acquire Capital Stock.

                  "Chattel  Paper"  means any  "chattel  paper," as such term is
         defined  in Article  or  Chapter 9 of the UCC,  now owned or  hereafter
         acquired by Debtor.

                  "Clearing  Corporation"  means any "clearing  corporation," as
         such term is defined  in  Article  or Chapter 8 of the UCC,  and in any
         event  shall  include,  but not be limited  to, any (a) Person  that is
         registered as a "clearing  agency" under the federal  securities  laws,
         (b) federal  reserve bank, or (c) other Person that provides  clearance
         or  settlement  services  with respect to  Financial  Assets that would
         require  it  to  register  as  a  clearing  agency  under  the  federal
         securities laws but for an exclusion or exemption from the registration
         requirement,  if its

                                       2
<PAGE>

          activities as a clearing corporation,  including,  without limitation,
          promulgation  of rules,  are subject to regulation  by a  Governmental
          Authority.

                  "Collateral" has the meaning specified in Section 2.1.

                  "Commodity  Account"  means any  "commodity  account," as such
         term is  defined  in  Article  or  Chapter  9 of the UCC,  now owned or
         hereafter  acquired  by  Debtor,  including,  without  limitation,  all
         accounts  maintained by a Commodity  Intermediary  in which a Commodity
         Contract is carried for Debtor.

                  "Commodity  Contract" means any "commodity  contract," as such
         term is  defined in  Article  or  Chapter 9 of the UCC,  and  includes,
         without limitation,  a commodity futures contract,  a commodity option,
         or other  contract  that,  in each case, is (a) traded on or subject to
         the rules of a board of trade  that has been  designated  as a contract
         market for such a contract pursuant to the federal commodities laws, or
         (b) traded on a foreign  commodity board of trade,  exchange or market,
         and is carried on the books of a Commodity Intermediary for a Commodity
         Customer.

                  "Commodity  Customer"  means any "commodity  customer" as such
         term is  defined in  Article  or  Chapter 9 of the UCC,  and  includes,
         without  limitation,  any  Person  for  whom a  Commodity  Intermediary
         carries a Commodity Contract on its books.

                  "Commodity  Intermediary" means any "commodity  intermediary,"
         as such term is defined in Article or Chapter 9 of the UCC,  including,
         without  limitation,  (a) a  Person  who  is  registered  as a  futures
         commission merchant under the federal commodities laws, or (b) a Person
         who in the  ordinary  course  of its  business  provides  clearance  or
         settlement  services for a board of trade that has been designated as a
         contract market pursuant to the federal commodities laws.

                  "Copyright   License"  means  any  written  agreement  now  or
         hereafter  in  existence  granting  to  Debtor  any  right  to use  any
         Copyright including,  without limitation,  the agreements identified on
         Schedule  1, in each  case to the  extent  the  grant  by  Debtor  of a
         security  interest  pursuant to this Agreement in its right,  title and
         interest in such agreement is not prohibited by such agreement  without
         the consent of any other party thereto,  would not give any other party
         to such agreement the right to terminate its obligations thereunder, or
         is permitted with consent if all necessary  consents to such grant of a
         security interest have been obtained from the other parties thereto (it
         being  understood  that the  foregoing  shall not be deemed to obligate
         Debtor  to  obtain  such  consents);   provided,   that  the  foregoing
         limitation  shall not  affect,  limit,  restrict or impair the grant by
         Debtor  of a  security  interest  pursuant  to  this  Agreement  in any
         accounts  receivable or any money or other amounts due or to become due
         under such agreement.

                  "Copyright  Security  Agreement"  means a  copyright  security
         agreement,   executed  and  delivered  by  Debtor  to  Secured   Party,
         substantially  in the  form of  Exhibit  A, as  such  agreement  may be
         amended, supplemented or otherwise modified from time to time.

                                       3
<PAGE>

                  "Copyrights"  means all of the following:  (a) all copyrights,
         works protectable by copyright,  copyright  registrations and copyright
         applications of Debtor, including,  without limitation, those set forth
         on Schedule 1; (b) all renewals,  extensions and modifications thereof;
         (c) all income, royalties, damages, profits and payments relating to or
         payable  under  any of the  foregoing;  (d) the  right to sue for past,
         present or future infringements of any of the foregoing;  (e) all other
         rights and benefits  relating to any of the  foregoing  throughout  the
         world;  and (f) all goodwill  associated  with and symbolized by any of
         the foregoing; in each case, whether now owned or hereafter acquired by
         Debtor.

                  "Data   Centers"   means  the  data  centers   planned  to  be
         constructed and operated by Debtor at 587 McDonnell  Blvd.,  Hazelwood,
         MO 63042 and 760 Office Parkway, Creve Coeur, MO 63141.

                  "Debt  Issuance"  means any  issuance by Holdings or Debtor of
         any Debt securities of Holdings or Debtor, respectively.

                  "Deposit   Accounts"  means  any  and  all  deposit   accounts
         (including  cash  collateral  accounts),  bank  accounts or  investment
         accounts  now  owned  or  hereafter   acquired  or  opened  by  Debtor,
         including,  without limitation,  those set forth on Schedule 2, and any
         account which is a replacement  or substitute for any of such accounts,
         together with all monies,  Instruments,  certificates,  checks, drafts,
         wire transfer  receipts and other  Property  deposited  therein and all
         balances therein and all investments made with funds deposited  therein
         or  otherwise  held  in  connection   therewith,   including,   without
         limitation, indebtedness (howsoever evidenced) and/or securities issued
         or guaranteed by the  government of the U.S.,  certificates  of deposit
         and all contract rights, General Intangibles,  contracts,  Instruments,
         Investment Property, Security Entitlements, Financial Assets, Commodity
         Contracts and other  Documents  now or hereafter  existing with respect
         thereto,   including,  but  not  limited  to,  any  and  all  renewals,
         extensions,  reissuances and  replacements and  substitutions  therefor
         with all earnings,  profits or other Proceeds  therefrom in the form of
         interest  or  otherwise,  from time to time  representing,  evidencing,
         deposited  into or held in such  deposit  accounts,  bank  accounts  or
         investment accounts.

                  "Document"  means any  "document,"  as such term is defined in
         Article or Chapter 9 of the UCC,  now owned or  hereafter  acquired  by
         Debtor, including,  without limitation,  all documents of title and all
         receipts  covering,  evidencing  or  representing  goods  now  owned or
         hereafter acquired by Debtor.

                  "Entitlement  Holder" means any "entitlement  holder", as such
         term is defined  in  Article or Chapter 8 of the UCC,  and in any event
         shall  include,  but not be limited  to, any Person  identified  in the
         records of a Securities  Intermediary  as the Person  having a Security
         Entitlement  against the Securities  Intermediary,  including,  without
         limitation,  any Person  who  acquires  a  security  entitlement  under
         Article or Chapter 8 of the UCC.

                                       4
<PAGE>

                  "Equipment"  means any "equipment," as such term is defined in
         Article or Chapter 9 of the UCC,  now owned or  hereafter  acquired  by
         Debtor  and,  in any event,  shall  include,  without  limitation,  all
         machinery,  equipment,  furniture,  fixtures, trade fixtures, trailers,
         rolling  stock,  vessels,  aircraft and vehicles now owned or hereafter
         acquired  by  Debtor  and  any  and all  additions,  substitutions  and
         replacements of any of the foregoing,  wherever located,  together with
         all attachments, components, parts, equipment and accessories installed
         thereon or affixed thereto.

                  "FCC"  means the  Federal  Communications  Commission  and any
         successor agency.

                  "Financial Asset" means any "financial asset," as such term is
         defined  in Article  or  Chapter 8 of the UCC,  and in any event  shall
         include,  but not be limited to, any (a) Security,  (b) obligation of a
         Person or a share,  participation  or other  interest in a Person or in
         Property or an enterprise of a Person, which is, or is of a type, dealt
         in or traded on financial  markets,  or which is recognized in any area
         in which it is issued or dealt in as a medium for  investment,  and (c)
         any  Property  that is held by a  Securities  Intermediary  for another
         Person in a  Securities  Account  if the  Securities  Intermediary  has
         expressly  agreed  with the other  Person  that the  Property  is to be
         treated as a Financial Asset under Article or Chapter 8 of the UCC.

                  "Foreign  Subsidiary" means, with respect to any Person,  each
         direct  or  indirect  Subsidiary  of  such  Person  that  is not a U.S.
         Subsidiary.

                  "General Intangibles" means any "general intangibles," as such
         term is  defined  in  Article  or  Chapter  9 of the UCC,  now owned or
         hereafter acquired by Debtor and, in any event, shall include,  without
         limitation,  each of the  following,  whether  now  owned or  hereafter
         acquired by Debtor:  (a) all of Debtor's  service  marks,  trade names,
         trade secrets, registrations,  goodwill, franchises, licenses, permits,
         proprietary  information,  customer lists, designs and inventions;  (b)
         all of Debtor's books and records,  including,  without limitation, all
         computer  runs,  invoices,   tapes,  processing  software,   processing
         contracts  (such as contracts  for computer  time and services) and any
         computer  prepared  information,  tapes  or  data  of  every  kind  and
         description,  whether in the  possession of Debtor or in the possession
         of third  parties,  and all of  Debtor's  other data,  plans,  manuals,
         computer software,  computer tapes,  computer disks, computer programs,
         source codes,  object  codes,  management  information  systems and all
         rights of Debtor to  retrieve  data and other  information  from  third
         parties  and other  data of every kind and  description,  to the extent
         that they indicate,  summarize or evidence, or otherwise relate to, the
         Accounts or  Inventory,  whether in the  possession of Debtor or in the
         possession  of any third party;  (c) all of Debtor's  contract  rights,
         partnership  interests,  joint venture interests,  securities,  Deposit
         Accounts,  investment  accounts and certificates of deposit (including,
         without  limitation,  all  contracts  relating to the  construction  or
         operation of the Network,  including rights of way,  easements,  leases
         and all related  contracts);  (d) all rights of Debtor to payment under
         letters  of  credit  and   similar   agreements,   including,   without
         limitation,  all Letter of Credit  Rights;  (e) all tax refunds and tax
         refund claims of Debtor;  (f) all choses in action and causes of action
         of Debtor (whether  arising in contract,  tort or otherwise and whether
         or not currently in litigation) and all judgments in favor of Debtor,

                                       5
<PAGE>

         including,  without  limitation,  all commercial  tort claims;  (g) all
         rights and claims of Debtor under warranties,  indemnities,  guaranties
         or other Supporting  Obligations  with respect to such agreements;  (h)
         all  Intellectual  Property;  and (i) all  rights of  Debtor  under any
         insurance,  surety or similar contract or arrangement,  in each case to
         the extent the grant by Debtor of a security  interest pursuant to this
         Agreement in its right, title and interest in such contract, agreement,
         instrument or indenture is not prohibited by such contract,  agreement,
         instrument or indenture without the consent of any other party thereto,
         would not give any other party to such contract, agreement,  instrument
         or indenture the right to terminate its obligations  thereunder,  or is
         permitted  with  consent if all  necessary  consents to such grant of a
         security interest have been obtained from the other parties thereto (it
         being  understood  that the  foregoing  shall not be deemed to obligate
         Debtor  to  obtain  such  consents);   provided,   that  the  foregoing
         limitation  shall not  affect,  limit,  restrict or impair the grant by
         Debtor  of a  security  interest  pursuant  to  this  Agreement  in any
         accounts  receivable or any money or other amounts due or to become due
         under such contract, agreement, instrument or indenture.

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

                  "Guarantee" by any Person means any indebtedness, liability or
         obligation,  contingent  or  otherwise,  of  such  Person  directly  or
         indirectly  guaranteeing  any Debt or  other  obligation  of any  other
         Person and,  without  limiting the  generality  of the  foregoing,  any
         indebtedness,  liability or obligation,  direct or indirect, contingent
         or  otherwise,  of such  Person (a) to  purchase  or pay (or advance or
         supply  funds  for the  purchase  or  payment  of)  such  Debt or other
         obligation (whether arising by virtue of partnership  arrangements,  by
         agreement  to  keep-well,  to purchase  assets,  goods,  securities  or
         services, to take-or-pay, or to maintain financial statement conditions
         or  otherwise)  or (b) entered  into for the purpose of assuring in any
         other manner the obligee of such Debt or other indebtedness,  liability
         or  obligation  as to the  payment  thereof or to protect  the  obligee
         against loss in respect  thereof (in whole or in part),  provided  that
         the term  Guarantee  shall not include  endorsements  for collection or
         deposit in the ordinary course of business.  The term  "Guarantee" used
         as a verb has a  corresponding  meaning.  The  amount of any  Guarantee
         shall be  deemed to be an amount  equal to the  stated or  determinable
         amount of the primary  obligation in respect of which such Guarantee is
         made  or,  if not  stated  or  determinable,  the  maximum  anticipated
         liability  in respect  thereof  (assuming  such  Person is  required to
         perform thereunder).

                  "Instrument"  means any  "instrument," as such term is defined
         in Article or Chapter 9 of the UCC, now owned or hereafter  acquired by
         Debtor, and, in any event, shall include all promissory notes,  drafts,
         bills of exchange and trade acceptances of Debtor, whether now owned or
         hereafter acquired.

                  "Intellectual   Property"  means  the  Copyrights,   Copyright
         Licenses, Patents, Patent Licenses, Trademarks and Trademark Licenses.

                                       6
<PAGE>

                  "Inventory"  means any "inventory," as such term is defined in
         Article or Chapter 9 of the UCC,  now owned or  hereafter  acquired  by
         Debtor, and, in any event, shall include,  without limitation,  each of
         the following,  whether now owned or hereafter  acquired by Debtor: (a)
         all goods and other personal  property of Debtor that are held for sale
         or lease or to be furnished under any contract of service;  (b) all raw
         materials,  work-in-process,  finished goods,  inventory,  supplies and
         materials  of Debtor;  (c) all  wrapping,  packaging,  advertising  and
         shipping materials of Debtor; (d) all goods that have been returned to,
         repossessed  by or stopped in transit by Debtor;  and (e) all Documents
         evidencing any of the foregoing.

                  "Investment Property" means any "investment property," as such
         term is  defined  in  Article  or  Chapter  9 of the UCC,  now owned or
         hereafter acquired by Debtor, and, in any event, shall include, without
         limitation,  each of the  following,  whether  now  owned or  hereafter
         acquired by Debtor:  (a) the Securities  Accounts and other  Investment
         Property  described on Schedule 2; (b) any  Security or Capital  Stock,
         whether certificated or uncertificated;  (c) any Security  Entitlement;
         (d) any Securities  Account;  (e) any Commodity  Contract;  and (f) any
         Commodity Account.

                  "Issuer"  means  any  "issuer,"  as such  term is  defined  in
         Article or Chapter 8 of the UCC,  and in any event shall  include,  but
         not be limited to, any Person that, with respect to an obligation on or
         a defense to a Security,  (a) places or  authorizes  the placing of its
         name on a Security Certificate,  other than as authenticating  trustee,
         registrar,   transfer   agent  or  the  like,   to  evidence  a  share,
         participation or other interest in its Property or in an enterprise, or
         to  evidence  its duty to  perform  an  obligation  represented  by the
         certificate;  (b) creates a share,  participation  or other interest in
         its Property or in an enterprise, or undertakes an obligation,  that is
         an  Uncertificated  Security;  (c)  directly  or  indirectly  creates a
         fractional  interest  in its  rights  or  Property,  if the  fractional
         interest  is  represented  by a Security  Certificate;  or (d)  becomes
         responsible for, or in the place of, another Issuer.

                  "Letter of Credit  Rights" means "letter of credit  rights" as
         such term is defined in Revised Article 9.

                  "License" means any consent, permit,  franchise,  certificate,
         approval, order, license,  right-of-way (whether an easement,  contract
         or agreement in any form) or other  authorization,  including,  without
         limitation, any FCC License.

                 "Lien" means,  with respect to any  Property,  any mortgage or
         deed of trust, pledge, hypothecation,  assignment, deposit arrangement,
         security  interest,  tax lien,  financing  statement,  pledge,  charge,
         hypothecation or other lien, charge,  easement (other than any easement
         not materially impairing usefulness), encumbrance, preference, priority
         or other security agreement or preferential  arrangement of any kind or
         nature  whatsoever  on or with  respect  to such  Property  (including,
         without  limitation,  any  conditional  sale or other  title  retention
         agreement having  substantially  the same economic effect as any of the
         foregoing).

                                       7
<PAGE>

                  "Master Purchase Agreement" means that certain Nortel Networks
         Global  Purchase  Agreement,  dated as of June 30, 2000, by and between
         Debtor and Nortel Networks,  as amended,  supplemented or restated from
         time to time.

                  "Network"  means  as  such  term  is  defined  in  the  Credit
         Agreement.

                  "Nortel  Networks"  means  Nortel  Networks  Inc.,  a Delaware
         corporation.

                  "Nortel Networks  Equipment" means all hardware,  software and
         equipment (including fixtures) manufactured, sold or otherwise provided
         to Debtor or any  Subsidiary  of  Holdings  by Nortel  Networks  and/or
         Nortel Networks Corporation including, without limitation,  pursuant to
         the Master Purchase Agreement.

                  "Nortel Networks  Software" means any and all software sold or
         licensed by Nortel  Networks  and/or  Nortel  Networks  Corporation  to
         Debtor or any Subsidiary of Holdings and including, without limitation,
         all source code and object code and all manuals and other documentation
         relating thereto and each copy thereof regardless of the media in which
         they are stored.

                  "Obligations" means the "Obligations", as such term is defined
         in  the  Credit  Agreement,  and  the  obligations,   indebtedness  and
         liabilities  of Debtor under this Agreement and any other Loan Document
         to which Debtor is a party.

                  "Patent License" means any written  agreement now or hereafter
         in existence granting to Debtor any right to use any invention on which
         a Patent is in existence including,  without limitation, the agreements
         described on Schedule 1, in each case to the extent the grant by Debtor
         of a security interest  pursuant to this Agreement in its right,  title
         and interest in such  agreement  is not  prohibited  by such  agreement
         without  the  consent of any other  party  thereto,  would not give any
         other party to such  agreement the right to terminate  its  obligations
         thereunder,  or is permitted with consent if all necessary  consents to
         such grant of a security  interest  have been  obtained  from the other
         parties  thereto (it being  understood  that the foregoing shall not be
         deemed to obligate Debtor to obtain such consents);  provided, that the
         foregoing  limitation shall not affect,  limit,  restrict or impair the
         grant by Debtor of a security  interest  pursuant to this  Agreement in
         any accounts  receivable or any money or other amounts due or to become
         due under such agreement.

                  "Patent Security  Agreement" means a patent security agreement
         executed and delivered by Debtor to Secured Party, substantially in the
         form of Exhibit B, as such  agreement may be amended,  supplemented  or
         otherwise modified from time to time.

                  "Patents" means all of the following:  (a) all patents, patent
         applications and patentable  inventions of Debtor,  including,  without
         limitation,  those set forth on Schedule  1, and all of the  inventions
         and improvements  described and claimed therein; (b) all continuations,
         divisions,   renewals,   extensions,   modifications,    substitutions,
         continuations-in-part  or  reissues
                                       8
<PAGE>

         of any of the foregoing; (c) all income,  royalties,  profits, damages,
         awards and payments  relating to or payable under any of the foregoing;
         (d) the right to sue for past, present and future  infringements of any
         of the foregoing;  (e) all other rights and benefits relating to any of
         the foregoing  throughout  the world;  and (f) all goodwill  associated
         with any of the foregoing; in each case, whether now owned or hereafter
         acquired by Debtor.

                  "Payment Intangibles" means "payment intangibles" as such term
         is defined in Revised Article 9.

                  "Person"   means   any   individual,    corporation,    trust,
         association,  company,  partnership,  joint venture,  limited liability
         company, joint stock company, Governmental Authority or other entity.

                  "Pledged  Collateral"  has the  meaning  specified  in Section
         4.16(b)(i).

                  "Pledged  Shares" means 100% of the Capital Stock from time to
         time owned or acquired by Debtor in any manner of each of the direct or
         indirect U. S. Subsidiaries of Debtor,  including  without  limitation,
         the  Capital  Stock  identified  on Schedule 3 attached  hereto,  or on
         Schedule 1 to an Amendment.

                  "Proceeds"  means any  "proceeds,"  as such term is defined in
         Article or Chapter 9 of the UCC and, in any event,  shall include,  but
         not be  limited  to,  (a)  any  and  all  proceeds  of  any  insurance,
         indemnity,  warranty  or  guaranty  payable to Debtor from time to time
         with respect to any of the Collateral, (b) any and all payments (in any
         form whatsoever) made or due and payable to Debtor from time to time in
         connection with any requisition, confiscation, condemnation, seizure or
         forfeiture  of all or any part of the  Collateral  by any  Governmental
         Authority (or any Person acting, or purporting to act, for or on behalf
         of any Governmental Authority),  and (c) any and all other amounts from
         time to time paid or  payable  under or in  connection  with any of the
         Collateral and all other Payment Intangibles relating thereto.

                  "Property" means property and/or assets of all kinds,  whether
         real,  personal or mixed,  tangible or intangible  (including,  without
         limitation,  all rights relating thereto), whether owned or acquired on
         or after the date hereof.

                  "Revised Article 9" means the Revised Article 9 of the Uniform
         Commercial  Code  included  in the 1998  official  text of the  Uniform
         Commercial  Code as approved by the American Law  Institute in 1998 and
         the National Conference of Commissioners on Uniform State Laws in 1999.

                  "Securities  Account" means any "securities  account," as such
         term is defined  in  Article or Chapter 8 of the UCC,  and in any event
         shall include,  but not be limited to, any account to which a Financial
         Asset is or may be credited in accordance with an agreement under which
         the Person  maintaining the account  undertakes to treat the Person for
         whom the account is  maintained as entitled to exercise the rights that
         comprise the Financial Asset.

                                       9
<PAGE>

                  "Securities Intermediary" means any "securities intermediary,"
         as such term is defined in Article or Chapter 8 of the UCC,  and in any
         event  shall  include,   but  not  be  limited  to,  any  (a)  Clearing
         Corporation,  or (b) Person,  including  a bank or Broker,  that in the
         ordinary  course of its  business  maintains  Securities  Accounts  for
         others and is acting in that capacity.

                  "Security"  means any  "security,"  as such term is defined in
         Article or Chapter 8 of the UCC and, in any event,  shall include,  but
         not  be  limited  to,  any   obligation   of  an  Issuer  or  a  share,
         participation  or other  interest  in an  Issuer or in  Property  or an
         enterprise  of  an  Issuer  (a)  which  is  represented  by a  Security
         Certificate in bearer or registered  form, or the transfer of which may
         be registered upon books maintained for that purpose by or on behalf of
         the  Issuer,  (b)  which is one of a class or series or by its terms is
         divisible into a class or series of shares,  participations,  interests
         or  obligations,  and (c) which  (i) is,  or is of a type,  dealt in or
         traded on  securities  exchanges or  securities  markets,  or (ii) is a
         medium for investment and by its terms expressly  provides that it is a
         security governed by Article or Chapter 8 of the UCC.

                  "Security  Certificate"  means any "security  certificate," as
         such term is defined  in  Article  or Chapter 8 of the UCC,  and in any
         event  shall   include,   but  not  be  limited  to,  any   certificate
         representing a Security.

                  "Security  Entitlement"  means any "security  entitlement," as
         such term is defined  in  Article  or Chapter 8 of the UCC,  and in any
         event  shall  include,  but not be  limited  to,  any of the rights and
         property interests of an Entitlement Holder with respect to a Financial
         Asset.

                  "Subsidiary"   means,   with   respect  to  any  Person,   any
         corporation  or  other  entity  of which  at  least a  majority  of the
         outstanding shares of stock or other ownership  interests having by the
         terms thereof ordinary voting power to elect a majority of the board of
         directors (or Persons performing similar functions) of such corporation
         or entity (irrespective of whether or not at the time, in the case of a
         corporation,  stock of any other  class or classes of such  corporation
         shall have or might have voting power by reason of the happening of any
         contingency) is at the time directly or indirectly  owned or controlled
         by such Person or one or more of its Subsidiaries or by such Person and
         one or more of its Subsidiaries.

                  "Supporting  Obligations"  means  "supporting  obligations" as
         such term is defined in Revised Article 9.

                  "Trademark   License"  means  any  written  agreement  now  or
         hereafter  in  existence  granting  to  Debtor  any  right  to use  any
         Trademark,  including, without limitation, the agreements identified on
         Schedule  1, in each  case to the  extent  the  grant  by  Debtor  of a
         security  interest  pursuant to this Agreement in its right,  title and
         interest in such agreement is not prohibited by such agreement  without
         the consent of any other party thereto,  would not give any other party
         to such agreement the right to terminate its obligations thereunder, or
         is permitted with consent if all necessary  consents to such grant of a
         security interest have been obtained from the other parties thereto (it
         being  understood  that the  foregoing  shall not be

                                       10
<PAGE>

         deemed to obligate Debtor to obtain such consents);  provided, that the
         foregoing  limitation shall not affect,  limit,  restrict or impair the
         grant by Debtor of a security  interest  pursuant to this  Agreement in
         any accounts  receivable or any money or other amounts due or to become
         due under such agreement.

                  "Trademark  Security  Agreement"  means a  trademark  security
         agreement   executed  and   delivered  by  Debtor  to  Secured   Party,
         substantially  in the  form of  Exhibit  C, as  such  agreement  may be
         amended, supplemented or otherwise modified from time to time.

                  "Trademarks"  means all of the following:  (a) all trademarks,
         trade names, corporate names, company names, business names, fictitious
         business  names,  trade styles,  service marks,  logos,  other business
         identifiers,  prints  and  labels  on which any of the  foregoing  have
         appeared or appear,  all registrations  and recordings  thereof and all
         applications in connection  therewith,  including,  without limitation,
         registrations,  recordings and applications in the United States Patent
         and  Trademark  Office or in any similar  office or agency of the U.S.,
         any state  thereof or any other  country or any  political  subdivision
         thereof, including,  without limitation, those described in Schedule 1;
         (b) all  reissues,  extensions  and renewals  thereof;  (c) all income,
         royalties, damages and payments now or hereafter relating to or payable
         under any of the foregoing,  including, without limitation,  damages or
         payments for past or future infringements of any of the foregoing;  (e)
         the right to sue for past,  present and future  infringements of any of
         the  foregoing;  (f) all rights  corresponding  to any of the foregoing
         throughout  the  world;  and  (g)  all  goodwill  associated  with  and
         symbolized by any of the foregoing;  in each case, whether now owned or
         hereafter acquired by Debtor.

                  "UCC"  means the  Uniform  Commercial  Code as in effect on or
         after  the  date  hereof  in the  State of New York  and/or  any  other
         jurisdiction  the laws of which may be  applicable  to or in connection
         with the creation,  perfection or priority, or the effect of perfection
         or non-perfection,  of any Lien on any Property created or purported to
         be  created   pursuant  to  this  Agreement,   and  includes,   without
         limitation,  Revised  Article 9 if and when enacted in the State of New
         York and/or any other such jurisdiction.

                  "Uncertificated Security" means any "uncertificated security,"
         as such term is defined in Article or Chapter 8 of the UCC,  and in any
         event shall  include,  but not be limited to, any Security  that is not
         represented by a certificate.

                  "U.S." means the United States of America.

                  "U.S.  Subsidiary"  means,  with  respect to any Person,  each
         direct or indirect  Subsidiary  of such Person formed under the laws of
         the U.S. or any state thereof.

         Section 1.2 Other Definitional  Provisions.  Terms used herein that are
defined in the Credit Agreement and are not otherwise  defined herein shall have
the  meanings  therefor  specified  in  the  Credit  Agreement.   References  to
"Sections,"  "Subsections,"  "Exhibits"  and  "Schedules"  shall be to Sections,
Subsections,  Exhibits and Schedules,  respectively,  of this  Agreement  unless
otherwise specifically provided. All definitions contained in this Agreement are
equally  applicable to the

                                       11
<PAGE>

singular and plural forms of the terms  defined.  All references to statutes and
regulations shall include any amendments of the same and any successor  statutes
and regulations.  References to particular sections of the UCC should be read to
refer also to parallel  sections of the  Uniform  Commercial  Code as enacted in
each state or other  jurisdiction  where any portion of the Collateral is or may
be located.  Terms used herein  which are defined in the UCC,  unless  otherwise
defined herein or in the Credit Agreement, shall have the meanings determined in
accordance with the UCC. The term "continuing",  "continuation" or "continuance"
means,  in reference to any Default or Event of Default that has occurred,  that
such  Default or Event of Default  has not been either  cured to the  reasonable
satisfaction  of the Secured Party within the  applicable  grace period (if any)
specified  in this  Agreement or the other Loan  Documents  (as  applicable)  or
waived in writing by the requisite  Lenders in accordance  with Section 13.11 of
the Credit Agreement.

                                    ARTICLE 2

                                Security Interest

         Section  2.1  Security  Interest.  Subject  to Section  2.2  below,  as
collateral  security for the prompt payment and  performance in full when due of
the  Obligations  (whether at stated  maturity,  by  acceleration or otherwise),
Debtor hereby pledges and assigns (as  collateral) to Secured Party,  and grants
to Secured Party, as Administrative  Agent for the Lenders, a continuing Lien on
and security  interest in, all of Debtor's  right,  title and interest in and to
the following,  whether now owned or hereafter  arising or acquired and wherever
located (collectively, the "Collateral"):

                  (a)      all Accounts;

                  (b)      all Chattel Paper;

                  (c)      all Instruments;

                  (d)      all General Intangibles;

                  (e)      all Documents;

                  (f)      all   Equipment   (including,   without   limitation,
                           Equipment at the locations set forth on Schedule 4);

                  (g)      all   Inventory   (including,   without   limitation,
                           Inventory at the locations set forth on Schedule 4);

                  (h)      all Intellectual Property;

                  (i)      all  Financial   Assets  and   Investment   Property,
                           including,  without limitation,  or in addition,  the
                           following:

                                       12
<PAGE>

                           (1)      all   of  the   Pledged   Shares   and   the
                                    certificates   (if  any)   representing  the
                                    Pledged  Shares,  and all  dividends,  cash,
                                    Instruments, and other property from time to
                                    time  received,   receivable,  or  otherwise
                                    distributed or  distributable  in respect of
                                    or in exchange for any or all of the Pledged
                                    Shares; and

                           (2)      all  additional  Capital  Stock from time to
                                    time  owned or  acquired  by  Debtor  in any
                                    manner,    and    all    dividends,    cash,
                                    Instruments, and other property from time to
                                    time  received,   receivable,  or  otherwise
                                    distributed or  distributable  in respect of
                                    or in  exchange  for  any  or  all  of  such
                                    Capital Stock; provided, no Capital Stock of
                                    a Foreign  Subsidiary is or shall be pledged
                                    pursuant to this Section 2.1(i);

                  (j)      all Deposit Accounts;

                  (k)      all indebtedness  from time to time owed to Debtor by
                           Holdings  or any of  Debtor's  Subsidiaries  and  the
                           instruments  evidencing  such  indebtedness,  and all
                           interest,  cash,  instruments and other property from
                           time  to  time  received,   receivable  or  otherwise
                           distributed  or  distributable  in  respect  of or in
                           exchange for any or all of such indebtedness;

                  (l)      all  proceeds,  in cash or  otherwise,  of any of the
                           property  described  in  the  foregoing  clauses  (a)
                           through (k) and all liens, security, rights, remedies
                           and claims of Debtor with respect thereto;

                  (m)      all other  goods and  personal  Property of Debtor of
                           any   kind  or   character,   whether   tangible   or
                           intangible,  including,  without limitation,  any and
                           all rights in and claims  under  insurance  policies,
                           judgments and rights thereunder, and tort claims; and

                  (n)      all  Proceeds  and  products  of  any  or  all of the
                           foregoing.

         Section 2.2 Exclusions from Security Interest. Notwithstanding anything
in this  Agreement to the  contrary,  "Collateral"  shall not include any of the
following  Property as long as such Property is  encumbered  by Permitted  Liens
(or, in the case of the Lucent Equipment,  expected to be encumbered by November
30, 2000) and as long as such Property is not Nortel Networks Equipment,  Nortel
Networks  Software  nor any other  Property  acquired  with the  proceeds of the
Loans:

                  (x)      any  Property  encumbered  (or,  in the  case  of the
                           Lucent  Equipment,   expected  to  be  encumbered  by
                           November 30, 2000) by purchase money Liens  permitted
                           by clause (g) of the definition of "Permitted Liens,"
                           as such term is defined in the Credit Agreement;

                                       13
<PAGE>

                  (y)      the  real  property  and  related  fixtures  and  any
                           equipment   located  at  the  Data  Centers  and  the
                           proceeds thereof; and

                  (z)      funds held back by a lender  from the  proceeds  of a
                           Debt Issuance in an escrow or collateral  account for
                           the  purpose  of paying  interest  on such Debt as it
                           accrues.

         Upon the  request  of Debtor,  without  the  requirement  of consent or
agreement  of any Lender,  the Secured  Party  shall  promptly  execute (A) such
releases or other  terminations  of Liens as may be necessary  to terminate  the
Liens  granted to the Secured  Party under the Security  Documents in any of the
Property  described  in the  foregoing  clauses  (x),  (y) and  (z) or (B)  such
agreements as may be necessary to provide assurance that the Property  described
in the foregoing  clauses (x), (y) and (z) is not Collateral  pledged to Secured
Party or any Lender.  If the Debt secured by a Permitted  Lien  encumbering  any
Property of the type  described in the foregoing  clauses (x), (y) and (z) shall
be paid in full and the Permitted Lien on such Property is released  (other than
in  connection  with a  refinancing  of such Debt where the grant of a Permitted
Lien to secure such  refinancing  Debt is  contemplated)  or if a Permitted Lien
does not  encumber the Lucent  Equipment by November 30, 2000,  the Debtor shall
and shall cause its  Subsidiaries  to take such action as the Secured  Party may
reasonably  require to cause the Liens of the Security Documents to encumber the
Property in question and for such Liens to be perfected and protected.

         Notwithstanding  anything herein or in the other Security  Documents to
the  contrary,  to the extent  this  Agreement  or any other  Security  Document
purports  to grant to the  Secured  Party a lien and  security  interest  in any
License held directly or indirectly by Debtor, now owned or hereafter  acquired,
the Secured  Party shall only have a lien and security  interest in such License
at such times and to the extent  that  Debtor is  permitted  to grant a security
interest therein under the applicable  provisions of the  Communications  Act of
1934,  as  amended,  and  the  rules  and  regulations  of the  FCC  promulgated
thereunder and other applicable law;  provided,  that any such lien and security
interest shall to the extent  permitted by applicable law be deemed effective as
of the later of (i) the date of this  Agreement or (ii) the date on which Debtor
was assigned, or acquired control over, the applicable License.

         Section  2.3 Debtor  Remains  Liable.  Notwithstanding  anything to the
contrary  contained herein,  (a) Debtor shall remain liable under the contracts,
agreements,  documents and instruments  included in the Collateral to the extent
set forth therein to perform all of its duties and obligations thereunder to the
same extent as if this  Agreement  had not been  executed,  (b) the  exercise by
Secured  Party of any of its  rights or  remedies  hereunder  shall not  release
Debtor from any of its duties or obligations  under the  contracts,  agreements,
documents  and  instruments  included in the  Collateral,  and (c) Secured Party
shall  not have any  indebtedness,  liability  or  obligation  under  any of the
contracts,  agreements,  documents and instruments included in the Collateral by
reason of this  Agreement,  and Secured  Party shall not be obligated to perform
any of the  obligations or duties of Debtor  thereunder or to take any action to
collect or enforce any claim for payment assigned hereunder.

         Section 2.4  Delivery of  Collateral.  Debtor has  delivered to Secured
Party, endorsed in blank as appropriate,  all Collateral the possession of which
is necessary to perfect the security interest

                                       14
<PAGE>

of Secured Party therein as of the date hereof.  Furthermore,  within 10 days of
Debtor gaining any rights in any additional  Collateral having a value in excess
of  $100,000  the  possession  of which is  necessary  to perfect  the  security
interest of Secured Party therein, all certificates or instruments  representing
or evidencing the Pledged Shares,  any Instruments or Chattel Paper or any other
Collateral  including,  without limitation,  any Investment  Property,  shall be
delivered  to and held by or on  behalf  of  Secured  Party  pursuant  hereto in
suitable  form  for  transfer  by  delivery,  or  accompanied  by duly  executed
instruments  of  transfer  or  assignment  in  blank,  or held  by a  Securities
Intermediary  in a Securities  Account  pursuant to an agreement  among  Secured
Party,  Debtor and such  Securities  Intermediary  which  agreement  establishes
"control"  (as  defined in  Article or Chapter 8 of the UCC) of such  Securities
Account with  Secured  Party in one (or more if Secured  Party  requests) of the
manners  prescribed  in  Section  8-106  of the UCC,  all in form and  substance
reasonably  satisfactory  to Secured Party.  After the occurrence and during the
continuation  of a Default or an Event of Default,  Secured Party shall have the
right  at any time to  exchange  certificates  or  instruments  representing  or
evidencing  any  Pledged  Collateral  in  its  possession  for  certificates  or
instruments of smaller or larger denominations.

                                    ARTICLE 3

                         Representations and Warranties

         To induce  Secured  Party and the Lenders to enter into this  Agreement
and the other Loan Documents, Debtor represents and warrants that:

         Section 3.1 Title.  Debtor is, and with respect to Collateral  acquired
after the date  hereof  Debtor  will be, the legal and  beneficial  owner of the
Collateral  free and clear of any Lien or other  encumbrance,  except  for those
Permitted  Liens  (if any)  which  are  expressly  permitted  to  attach  to the
Collateral in accordance with the Credit Agreement and Liens in favor of Secured
Party  and  provided,  that  this  Section  3.1 does not  apply to  Intellectual
Property (which is addressed in Section 3.8 below).

         Section 3.2  Accounts.  Unless  Debtor has given  Secured Party written
notice  to the  contrary,  whenever  the  security  interest  granted  hereunder
attaches  to an  Account  with a value in excess of  $250,000,  Debtor  shall be
deemed to have  represented  and  warranted to Secured  Party as to each of such
Accounts at the time of its creation that, to the best knowledge of Debtor,  (a)
each such  Account is genuine  and in all  respects  what it purports to be, (b)
each such Account  represents  the legal,  valid and binding  obligation  of the
account debtor evidencing  indebtedness  unpaid and owed by such account debtor,
(c) except for defenses and business  disputes arising in the ordinary course of
business  which in the  aggregate  are not  material,  the  amount  of each such
Account  represented as owing is the correct amount actually and unconditionally
owing  except for normal  trade  discounts  granted  in the  ordinary  course of
business,  and (d) except for  defenses  and  business  disputes  arising in the
ordinary  course of business  which in the aggregate  are not material,  no such
Account is subject to any offset, counterclaim or other defense.

         Section 3.3 Financing  Statements.  Debtor has not signed any financing
statement,  security agreement or other Lien instrument covering all or any part
of the  Collateral,  except as may have  been

                                       15
<PAGE>

filed in favor of  Secured  Party  pursuant  to  either  the  Original  Security
Agreement  or this  Agreement  and except for  financing  statements  evidencing
Permitted Liens. Except as otherwise disclosed on Schedule 5, Debtor does not do
business and has not done business within the past five years under a trade name
or any  name  other  than its  legal  name set  forth at the  beginning  of this
Agreement.

         Section  3.4  Principal  Place  of  Business.  The  principal  place of
business and chief executive office of Debtor, and the office where Debtor keeps
its books  and  records,  is  located  at the  address  of  Debtor  shown at the
beginning of this Agreement.

         Section 3.5 Location of Collateral.  All Inventory (except Inventory in
transit) and Equipment (other than vehicles) of Debtor  constituting  Collateral
having a value in excess of  $100,000  is  located at the  places  specified  on
Schedule 4. Debtor shall give written  notice to Secured  Party at least 30 days
prior to the date any such Inventory and/or Equipment is located at any location
other than as set forth on Schedule 4. Except for  warehousing  and  co-location
arrangements,  Debtor has exclusive  possession and control of its Inventory and
Equipment.  None of  such  Inventory  (other  than  Inventory  as to  which  all
Documents  evidencing  such  Inventory  have been delivered to Secured Party) or
Equipment (other than vehicles) of Debtor  constituting  Collateral is evidenced
by a Document (including, without limitation, a negotiable document of title).

         Section  3.6  Perfection.  Upon the filing of Uniform  Commercial  Code
financing  statements in the jurisdictions listed on Schedule 6, the filing of a
Patent Security  Agreement (if any) and a Trademark  Security Agreement (if any)
with the United States Patent and  Trademark  Office,  the filing of a Copyright
Security  Agreement (if any) with the United States Copyright  Office,  and upon
Secured  Party's  obtaining  possession  of the  Pledged  Shares  (or  obtaining
"control"  (as such term is  defined  in Article or Chapter 8 of the UCC) of the
Pledged  Shares in one (or more if Secured  Party so  requests)  of the  manners
prescribed in Section 8-106 of the UCC) and all other Instruments, Chattel Paper
and  Security  Certificates  of Debtor  constituting  Collateral,  the  security
interest in favor of Secured  Party created  herein will  constitute a valid and
perfected  Lien upon and  security  interest in the  Collateral  (except for (a)
vehicles covered by certificates of title, and (b) other Property  excluded from
the  application of Article or Chapter 9 of the UCC by Section 9-104 of the UCC,
including,  without  limitation,  fixtures and deposit accounts),  subject to no
equal or prior Liens except for Permitted Liens.

         Section 3.7       [intentionally omitted]

         Section 3.8       Intellectual Property.

                  (a) The  information  contained  on  Schedule  1 in respect of
         Federally  registered  Trademarks,  registered  Copyrights  and  issued
         Patents, is true, correct and complete.

                  (b) Debtor is the sole and  exclusive  owner of the entire and
         unencumbered  right,  title  and  interest  in and to the  Intellectual
         Property set forth on Schedule 1  (consisting  of Federally  registered
         Trademarks, registered Copyrights and issued Patents) free and clear of
         any Liens,  including,  without limitation,  any pledges,  assignments,
         licenses,  user  agreements  and  covenants  by Debtor not to sue third
         Persons, other than Permitted Liens.

                                       16
<PAGE>

                  (c) To Debtor's  best  knowledge,  no claim has been made that
         the use of any of the  Intellectual  Property  set forth on  Schedule 1
         violates or may violate the rights of any third Person.

                  (d) Each of the Patents and Trademarks  identified on Schedule
         1 as being  registered  has been  properly  registered  with the United
         States  Patent  and  Trademark   Office  and  each  of  the  Copyrights
         identified  on  Schedule  1  as  being  registered  has  been  properly
         registered with the United States Copyright Office.

         Section 3.9       Pledged Shares and Instruments.

                  (a) The Pledged  Shares have been duly  authorized and validly
         issued  and are  fully  paid and  nonassessable  under  the laws of the
         jurisdiction of  incorporation  or organization of the issuers thereof.
         To the best  knowledge  of  Debtor,  the  Instruments  have  been  duly
         authorized and validly issued by the obligor  thereunder and constitute
         legally enforceable indebtedness of the obligor thereunder.

                  (b) Debtor is the legal and  beneficial  owner of the  Pledged
         Shares and the Instruments,  free and clear of any Lien (other than the
         Lien created by the Original Security Agreement or this Agreement), and
         Debtor has not sold,  granted  any option with  respect  to,  assigned,
         transferred  or otherwise  disposed of any of its rights or interest in
         or to the Pledged Shares or the Instruments.

                  (c) On the date  hereof,  the Pledged  Shares  constitute  the
         percentage of the issued and  outstanding  Capital Stock of the issuers
         thereof  indicated  on Schedule 3, as such  Schedule 3 may from time to
         time be supplemented, amended or modified.

         Section 3.10  Investment  Property.  As of the date of this  Agreement,
Schedule 2  contains  a complete  and  accurate  description  of all  Investment
Property owned by Debtor.

                                    ARTICLE 4

                                    Covenants

         Debtor   covenants  and  agrees  with  Secured  Party  that  until  the
Obligations  are paid and performed in full,  the  obligations  of Secured Party
under the Loan Documents and all Commitments of the Lenders have expired or have
been terminated:

         Section 4.1 Encumbrances. Except as otherwise permitted by the terms of
the Credit Agreement relating to disposition of assets, Debtor shall not create,
permit or suffer to exist, and shall defend the Collateral against,  any Lien or
other encumbrance on the Collateral except for Permitted Liens, and shall defend
Debtor's  rights in the  Collateral  and Secured  Party's  pledge and collateral
assignment  of and security  interest in the  Collateral  against the claims and
demands of all Persons.

                                       17
<PAGE>

Subject  to the  creation  or  existence  of  Permitted  Liens  under the Credit
Agreement,  Debtor shall do nothing to impair the rights of Secured Party in the
Collateral.

         Section 4.2       [intentionally omitted]

         Section 4.3 Disposition of Collateral. Except as expressly permitted by
the terms of the Credit  Agreement,  Debtor  shall not sell,  lease,  assign (by
operation of law or otherwise) or otherwise dispose of, or grant any option with
respect to, the Collateral or any part thereof without the prior written consent
of Secured Party.

         Section 4.4 Further Assurances. At any time and from time to time, upon
the request of Secured  Party,  and at the sole expense of Debtor,  Debtor shall
promptly  execute  and  deliver  all  such  further  agreements,  documents  and
instruments  and take such further action as Secured Party may  reasonably  deem
necessary or  appropriate  to preserve and perfect its security  interest in and
pledge and collateral  assignment of the Collateral and carry out the provisions
and  purposes of this  Agreement  or to enable  Secured  Party to  exercise  and
enforce its rights and remedies hereunder with respect to any of the Collateral,
and,  to the extent any of the  Collateral  at any time  constitutes  Investment
Property,  then Debtor shall cause Secured Party to obtain "control," as defined
in Article  or  Chapter 8 of the UCC,  of such  Collateral  in one (or more,  if
Secured  Party so requests) of the manners  prescribed  in Section  8-106 of the
UCC.  Debtor and Secured Party agree that the grant of the security  interest in
the Investment  Property  pursuant to this Agreement  shall have the effect of a
delivery of such  securities to Secured  Party  pursuant to Section 8-301 of the
UCC, and the effect of a taking of delivery by Secured Party of such  Collateral
in  accordance  with Section  8-302 of the UCC.  Except as  otherwise  expressly
permitted by the terms of the Credit Agreement relating to disposition of assets
and  except  for  Permitted  Liens,  Debtor  agrees to  defend  the title to the
Collateral  and the Lien thereon of Secured Party against the claim of any other
Person and to maintain and preserve such Lien.  Without  limiting the generality
of the  foregoing,  Debtor  shall (a) execute and deliver to Secured  Party such
financing statements as Secured Party may from time to time require; (b) deliver
and pledge to Secured Party all Documents  (including,  without limitation,  all
documents of title)  evidencing  Inventory or Equipment having a value in excess
of $100,000 (except for certificates of title covering vehicles unless otherwise
required by Secured  Party) and cause Secured Party to be named as lienholder on
all such Documents;  (c) deliver and pledge to Secured Party all Instruments and
Chattel  Paper of Debtor having a value in excess of $100,000 with any necessary
endorsements;   and  (d)  execute  and  deliver  to  Secured  Party  such  other
agreements, documents and instruments as Secured Party may reasonably require to
perfect and  maintain  the  validity,  effectiveness  and  priority of the Liens
intended to be created by the Loan  Documents.  In the event Debtor fails,  upon
request of Secured Party,  to promptly (and in any event within two days of such
request)  execute and file one or more  financing  or  continuation  statements,
and/or amendments thereto, relating to all or any part of the Collateral, Debtor
authorizes  Secured  Party to file such  financing or  continuation  statements,
and/or  amendments  thereto  without the signature of Debtor where  permitted by
law. A carbon,  photographic  or other  reproduction of this Agreement or of any
financing  statement  covering  the  Collateral  or any  part  thereof  shall be
sufficient as a financing statement and may be filed as a financing statement.

                                       18
<PAGE>

         Section 4.5 Insurance. Debtor shall maintain insurance in the types and
amounts,  and under the terms and  conditions,  specified  in Section 8.5 of the
Credit Agreement.  If applicable,  recoveries under any such policy of insurance
shall be paid as provided in the Credit Agreement.

         Section 4.6  Bailees.  If any of the  Collateral  is at any time in the
possession or control of any  warehouseman,  bailee or any of Debtor's agents or
processors,  Debtor  shall,  at  the  request  of  Secured  Party,  notify  such
warehouseman,  bailee,  agent or  processor  of the  security  interest  created
hereunder  and shall  instruct such Person to hold such  Collateral  for Secured
Party's account subject to Secured Party's instructions.

         Section 4.7  Inspection  Rights.  Debtor shall permit Secured Party and
its representatives and agents, during normal business hours and upon reasonable
notice to Debtor, to examine, copy and make extracts from its books and records,
to visit and inspect its Properties and to discuss its business,  operations and
financial   condition  with  its  officers  and  independent   certified  public
accountants.  The Debtor will authorize its  accountants in writing (with a copy
to the Secured Party) to comply with this Section.  The Secured Party and/or its
representatives  may,  at any time and from  time to time at  Debtor's  expense,
conduct  field  exams for such  purposes  as the  Secured  Party may  reasonably
request during normal business hours and upon reasonable notice to Debtor.

         Section 4.8       [intentionally omitted]

         Section  4.9  Corporate  Changes.  Debtor  shall not  change  its name,
identity or  corporate  structure  in any manner  that might make any  financing
statement filed in connection with this Agreement  seriously  misleading  unless
Debtor  shall have given  Secured  Party thirty (30) days prior  written  notice
thereof  and shall have taken all action  deemed  necessary  or  appropriate  by
Secured  Party to protect its Liens and the  perfection  and  priority  thereof.
Debtor shall not change its principal place of business,  chief executive office
or the place  where it keeps its books and  records  unless it shall  have given
Secured Party thirty (30) days prior written notice thereof and shall have taken
all  action  deemed  necessary  or  appropriate  by  Secured  Party to cause its
security  interest in the Collateral to be perfected with the priority  required
by this Agreement.

         Section 4.10 Books and  Records;  Information.  Debtor  shall  maintain
appropriate  books of records and accounts in accordance with GAAP  consistently
applied in which true, full and correct entries will be made of its dealings and
business affairs. Debtor shall from time to time at the request of Secured Party
deliver to Secured Party such information regarding the Collateral and Debtor as
Secured Party may reasonably request, including,  without limitation,  lists and
descriptions of the Collateral and evidence of the identity and existence of the
Collateral.  To the extent  required by Section 4.4, Debtor shall mark its books
and  records to reflect  the  security  interest  of  Secured  Party  under this
Agreement.

                                       19
<PAGE>

         Section 4.11      Equipment and Inventory.

                  (a) Debtor shall keep the Equipment  (other than vehicles) and
         Inventory (other than Inventory in transit) constituting Collateral and
         having a value in excess of  $100,000  at the  locations  specified  on
         Schedule 4 or at such  other  places  within the U.S.  where all action
         required to perfect Secured Party's security interest in such Equipment
         and Inventory with the priority  required by this Agreement  shall have
         been taken;  provided that if any such Equipment  (other than vehicles)
         or Inventory  (other than  Inventory in transit) is being  relocated to
         any  jurisdiction  where the security  interest of Secured  Party under
         this  Agreement has not been  previously  perfected,  then in such case
         Debtor shall  deliver  prompt (and in any event within not less than 30
         days) notice thereof to Secured Party.

                  (b) Debtor shall maintain the material Equipment and Inventory
         constituting Collateral in good condition and repair (ordinary wear and
         tear  excepted)  and  in  accordance  with  the  terms  of  the  Credit
         Agreement.  Debtor  shall not permit any waste or  destruction  of such
         Equipment  or Inventory  or any part  thereof.  Debtor shall not permit
         such Equipment or Inventory to be used in violation of any law, rule or
         regulation  or the terms of any policy of  insurance.  Debtor shall not
         use or permit  any of such  Equipment  or  Inventory  to be used in any
         manner or for any purpose  that would  impair its value or expose it to
         unusual risk.

                  (c)  Within  45 days of the  end of  each of  Debtor's  fiscal
         quarters,  Debtor shall  provide  Secured  Party with a report  setting
         forth in  reasonable  detail any change  during such  preceding  fiscal
         quarter of the  location of any  Equipment  or  Inventory  (unless such
         location  is one of the  locations  already  specified  on  Schedule 4)
         constituting Collateral.

         Section 4.12 Warehouse Receipts  Non-Negotiable.  Debtor agrees that if
any warehouse  receipt or receipt in the nature of a warehouse receipt is issued
in respect of any of the Collateral  having a value in excess of $100,000,  such
warehouse receipt or receipt in the nature thereof shall not be "negotiable" (as
such term is used in Section 7-104 of the UCC) unless such warehouse  receipt or
receipt in the nature thereof is delivered to Secured Party.

         Section 4.13  Notification.  Debtor shall promptly notify Secured Party
of (a) any Lien,  encumbrance  or claim  (other than  Permitted  Liens) that has
attached to or been made or  asserted  against  any of the  Collateral,  (b) any
material change in any of the Collateral,  including,  without  limitation,  any
material  damage to or loss of  Collateral,  and (c) the occurrence of any other
event or condition (including,  without limitation, matters as to Lien priority)
that could  reasonably  be  expected  to have a material  adverse  effect on the
Collateral or the security interest created hereunder.

         Section 4.14      [intentionally omitted]

         Section 4.15 Intellectual Property.  Except with the written consent of
Secured Party:

                  (a) If Debtor shall obtain rights to or become entitled to the
         benefit of any Intellectual  Property not identified on Schedule 1, the
         provisions of this Agreement shall

                                       20
<PAGE>

         automatically apply thereto. Debtor shall undertake to modify or update
         Schedule 1 to include  any such new  Intellectual  Property  and hereby
         authorizes  Secured Party to modify or update Schedule 1 to include any
         such new  Intellectual  Property  in the event  Debtor  fails to timely
         modify or update Schedule 1 upon written notice from Secured Party;

                  (b) Upon the  occurrence  of any event that would  require any
         addition  to or  modification  of  Schedule  1 or upon the  request  of
         Secured  Party,  Debtor shall furnish to Secured Party  statements  and
         schedules further identifying the Intellectual  Property and such other
         items in connection with the Intellectual Property as Secured Party may
         request.  Promptly  upon the  request of Secured  Party,  Debtor  shall
         modify  this   Agreement   by  amending   Schedule  1  to  include  any
         Intellectual Property that becomes part of the Collateral;

                  (c)  If an  Event  of  Default  shall  have  occurred  and  be
         continuing,  Debtor shall use its best efforts to obtain any  consents,
         waivers or agreements necessary to enable Secured Party to exercise its
         rights and remedies with respect to the Intellectual Property; and

                  (d) Debtor shall, at the request of Secured Party, execute and
         deliver to  Secured  Party a  Copyright  Security  Agreement,  a Patent
         Security  Agreement,  a  Trademark  Security  Agreement  and all  other
         agreements,  documents, instruments and other items as may be necessary
         for  Secured  Party to file  such  agreements  with the  United  States
         Copyright Office, the United States Patent and Trademark Office and any
         similar domestic or foreign office,  department or agency. Debtor will,
         at any time and from time to time upon the  request of  Secured  Party,
         execute  and  deliver  to  Secured  Party  all such  other  agreements,
         documents,   instruments  and  other  items  as  may  be  necessary  or
         appropriate  for  Secured  Party to create  and  perfect  its  security
         interest  in the  Intellectual  Property  and to make  all  appropriate
         filings with respect thereto.

         Section 4.16      Voting Rights, Distributions, Etc.

                  (a) So long as no Event of Default  shall have occurred and be
         continuing:

                           (i) Debtor  shall be entitled to exercise any and all
                  voting  and  other  consensual  rights   (including,   without
                  limitation,   the  right  to  give   consents,   waivers   and
                  notifications  in  respect of any of the  Pledged  Collateral)
                  pertaining  to any  of  the  Pledged  Collateral  or any  part
                  thereof; and

                           (ii) Unless an Event of Default  shall have  occurred
                  and be  continuing,  Debtor  shall be  entitled to receive and
                  retain any and all  dividends  and interest paid in respect of
                  any of the  Collateral  to the extent  permitted by the Credit
                  Agreement; provided, however, that any and all

                                    (A)  Restricted  Payments paid or payable in
                           violation of the terms of the Credit Agreement,

                                       21
<PAGE>

                                    (B)  Restricted  Payments  paid  or  payable
                           other than in cash in respect of, and instruments and
                           other  Property  received,  receivable  or  otherwise
                           distributed  in respect of, or in exchange  for,  any
                           Collateral,

                                    (C)  Restricted  Payments  hereafter paid or
                           payable  in  cash in  respect  of any  Collateral  in
                           connection  with a partial  or total  liquidation  or
                           dissolution  or in  connection  with a  reduction  of
                           capital, capital surplus or paid-in-surplus, and

                                    (D)  cash   paid,   payable   or   otherwise
                           distributed in redemption of, or in exchange for, any
                           Collateral,

         shall be, and shall be forthwith delivered to Secured Party to hold as,
         Collateral and shall,  if received by Debtor,  be received in trust for
         the benefit of Secured Party,  be segregated from the other Property or
         funds  of  Debtor  and be  forthwith  delivered  to  Secured  Party  as
         Collateral  in  the  same  form  as so  received  (with  any  necessary
         endorsement).  All amounts  (other than  amounts  described  in clauses
         (ii)(A)  through (D) above) received by Secured Party in respect of any
         Pledged  Collateral shall be either (1) promptly released to Debtor, so
         long as no  Default  or Event of Default  shall  have  occurred  and be
         continuing  or (2) if any  Default  or  Event  of  Default  shall  have
         occurred and be  continuing,  held by Secured Party and (if an Event of
         Default shall have occurred and be  continuing)  applied as provided by
         the  Credit  Agreement.  During the  continuance  of any  Default,  any
         dividends,   interest   or  other   distributions   (whether  in  cash,
         securities,  Property or otherwise)  received by Debtor with respect to
         any  Collateral  shall be held by Debtor in trust  for the  benefit  of
         Secured Party and, during the continuance of any Event of Default, upon
         the request of Secured  Party,  shall be delivered  promptly to Secured
         Party to hold as  Collateral,  as Secured  Party may in its  discretion
         determine.  If  such  Event  of  Default  is  waived  or  cured  to the
         satisfaction  of Secured  Party,  any such  distributions  received  by
         Secured Party (except those of the types  described in clauses  (ii)(A)
         through  (D) above  which  shall not be  released  to Debtor)  shall be
         returned promptly to Debtor (provided that no other Default or Event of
         Default exists).

                  (b) Upon the occurrence and during the continuance of an Event
         of Default:

                           (i)  Secured  Party  may,  without  notice to Debtor,
                  transfer or  register  in the name of Secured  Party or any of
                  its nominees any or all of the Collateral described in Section
                  2.1(i) or Section  2.1(k),  the  proceeds  thereof (in cash or
                  otherwise)  and all  liens,  security,  rights,  remedies  and
                  claims of  Debtor  with  respect  thereto  (collectively,  the
                  "Pledged  Collateral")  held by Secured Party  hereunder,  and
                  Secured Party or its nominee may thereafter, after delivery of
                  notice to Debtor,  exercise all voting and corporate rights at
                  any meeting of any corporation,  partnership or other business
                  entity  issuing any of the Pledged  Collateral and any and all
                  rights  of  conversion,  exchange,  subscription  or any other
                  rights, privileges or options pertaining to any of the Pledged
                  Collateral  as  if  it  were  the  absolute   owner   thereof,
                  including,  without  limitation,  the right to exchange at its
                  discretion  any and all of the  Pledged  Collateral  upon  the

                                       22
<PAGE>

                  merger,  consolidation,  reorganization,  recapitalization  or
                  other  readjustment of any  corporation,  partnership or other
                  business entity issuing any of such Pledged Collateral or upon
                  the exercise by any such issuer or Secured Party of any right,
                  privilege  or  option   pertaining   to  any  of  the  Pledged
                  Collateral,  and  in  connection  therewith,  to  deposit  and
                  deliver  any  and  all  of the  Pledged  Collateral  with  any
                  committee,  depositary,  transfer  agent,  registrar  or other
                  designated  agency  upon such terms and  conditions  as it may
                  determine,   all  without  liability  except  to  account  for
                  Property actually received by it, but Secured Party shall have
                  no duty to exercise any of the aforesaid rights, privileges or
                  options,  and neither  Secured  Party nor any Lender  shall be
                  responsible for any failure to do so or delay in so doing.

                           (ii) All rights of Debtor to exercise  the voting and
                  other  consensual  rights which it would otherwise be entitled
                  to exercise pursuant to Section  4.16(a)(i) and to receive the
                  dividends,  interest  and other  distributions  which it would
                  otherwise  be  authorized  to receive  and retain  pursuant to
                  Section  4.16(a)(ii)  shall be  suspended  until such Event of
                  Default  shall no longer  exist,  and all such  rights  shall,
                  until such Event of Default shall no longer  exist,  thereupon
                  become vested in Secured Party which shall  thereupon have the
                  sole right to exercise such voting and other consensual rights
                  and to receive and hold as Pledged  Collateral such dividends,
                  interest and other distributions.

                           (iii) All dividends, interest and other distributions
                  which are  received by Debtor  contrary to the  provisions  of
                  this  Section  4.16(b)  shall be  received  in  trust  for the
                  benefit of Secured Party, shall be segregated from other funds
                  of Debtor and shall be forthwith paid over to Secured Party as
                  Collateral in the same form as so received (with any necessary
                  endorsement).

                           (iv) Debtor shall execute and deliver (or cause to be
                  executed and  delivered) to Secured Party all such proxies and
                  other instruments as Secured Party may request for the purpose
                  of enabling  Secured  Party to  exercise  the voting and other
                  rights  which it is  entitled  to  exercise  pursuant  to this
                  Section  4.16(b) and to receive the  dividends,  interest  and
                  other distributions which it is entitled to receive and retain
                  pursuant to this Section  4.16(b).  The foregoing shall not in
                  any way limit  Secured  Party's  power and  authority  granted
                  pursuant to Section 5.1.

         Section 4.17      Transfers and Other Liens; Additional Investments.

                  (a) Except as may be  expressly  permitted by the terms of the
         Credit  Agreement,  Debtor  shall not grant any option with respect to,
         exchange,  sell or otherwise dispose of any of the Collateral or create
         or  permit  to  exist  any  Lien  upon  or with  respect  to any of the
         Collateral except for the Liens created hereby and Permitted Liens.

                  (b) Debtor agrees that it will (i) cause its U.S. Subsidiaries
         not  to  issue  any  Capital  Stock,   notes  or  other  securities  or
         instruments  in addition to or in  substitution  for any of the

                                       23
<PAGE>

         Pledged Shares,  except (A) with prior written notice to Secured Party,
         to Debtor or (B) with the  written  consent  of Secured  Party,  to any
         Person other than Debtor,  (ii) pledge hereunder,  immediately upon its
         acquisition  (directly or indirectly) thereof, any and all such Capital
         Stock,  notes or other  securities or  instruments  issued to Debtor or
         received  in  addition  to  or  substituted  for  any  of  the  Pledged
         Collateral,  and (iii) promptly (and in any event within three Business
         Days) deliver to Secured  Party an Amendment,  duly executed by Debtor,
         in substantially the form of Exhibit D (an "Amendment"),  in respect of
         such Capital Stock, notes or other securities or instruments,  together
         with  all  certificates,  notes  or  other  securities  or  instruments
         representing  or  evidencing  the same.  Debtor  hereby (1)  authorizes
         Secured  Party to attach  each  Amendment  to this  Agreement,  and (2)
         agrees  that all such  Capital  Stock,  notes  or other  securities  or
         instruments  listed on any  Amendment  delivered to Secured Party shall
         for all purposes hereunder constitute Pledged Collateral.

         Section  4.18  Possession;  Reasonable  Care.  Regardless  of whether a
Default or an Event of Default has  occurred  or is  continuing,  Secured  Party
shall have the right to hold in its  possession all  Instruments,  Chattel Paper
and Pledged Collateral pledged,  assigned or transferred hereunder and from time
to time  constituting a portion of the Collateral.  Secured Party may, from time
to time,  in its sole  discretion,  appoint one or more agents (which in no case
shall be Debtor or an Affiliate  of Debtor) to hold  physical  custody,  for the
account of Secured Party, of any or all of the  Collateral.  Secured Party shall
be deemed to have exercised  reasonable care in the custody and  preservation of
the  Collateral  in its  possession  if the  Collateral  is  accorded  treatment
substantially  equal to that which Secured  Party  accords its own Property,  it
being  understood that Secured Party shall not have any  responsibility  for (a)
ascertaining  or taking  action with respect to calls,  conversions,  exchanges,
maturities,  tenders or other matters relative to any Collateral, whether or not
Secured Party has or is deemed to have knowledge of such matters,  or (b) taking
any necessary  steps to preserve  rights against any parties with respect to any
Collateral.  Following the occurrence and during the continuation of an Event of
Default, Secured Party shall be entitled to take possession of the Collateral.

         Section  4.19  Acknowledgment  of  Collateral   Assignment  of  Deposit
Accounts. Debtor shall deliver to Secured Party, within 45 days of the execution
hereof and at any time as Secured Party may request  thereafter,  acknowledgment
by each financial institution in which any Deposit Account is held or maintained
that the collateral  assignment of such Deposit Account has been recorded in the
books and records of such  financial  institution,  and that Secured Party shall
have dominion and control over such Deposit Account,  such  acknowledgment to be
in form and substance satisfactory to Secured Party.

         Section 4.20  Statement of Account on Deposit  Accounts.  Debtor shall,
from time to time upon  written  request  of Secured  Party,  provide to Secured
Party a copy of any  requested  statement  of  account  on any  Deposit  Account
received by Debtor from the financial  institution in which a Deposit Account is
held or maintained.  At Secured Party's request,  Debtor will use its reasonable
efforts to make such  arrangements  as are necessary or  appropriate in order to
enable  Secured  Party to access  such  information  by inquiry of an officer or
other  representative  of any such  financial  institution  or via any automated
information system which may be maintained by such financial institution.

                                       24
<PAGE>

                                    ARTICLE 5

                             Rights of Secured Party

         Section 5.1 Power of Attorney.  Debtor hereby  irrevocably  constitutes
and appoints Secured Party and any officer or agent thereof,  with full power of
substitution,  as its true and  lawful  attorney-in-fact  with full  irrevocable
power and authority in the name of Debtor or in its own name, to take, after the
occurrence and during the continuance of an Event of Default, any and all action
and to execute any and all documents and instruments  which Secured Party at any
time and from time to time  deems  necessary  or  desirable  to  accomplish  the
purposes  of  this  Agreement  and,  without  limiting  the  generality  of  the
foregoing,  Debtor  hereby gives  Secured Party the power and right on behalf of
Debtor and in its own name to do any of the following  after the  occurrence and
during the continuance of an Event of Default,  without notice to or the consent
of Debtor:

                  (a) to demand,  sue for,  collect or  receive,  in the name of
         Debtor or in its own name, any money or Property at any time payable or
         receivable on account of or in exchange for any of the Collateral  and,
         in connection therewith,  endorse checks,  notes, drafts,  acceptances,
         money  orders,  documents  of title or any  other  instruments  for the
         payment of money under the  Collateral  or any policy of insurance  set
         forth, specified or required by the Credit Agreement;

                  (b) to pay or  discharge  taxes,  Liens or other  encumbrances
         levied or placed on or threatened against the Collateral;

                  (c) to notify  post office  authorities  to change the address
         for  delivery  of mail of Debtor to an  address  designated  by Secured
         Party and to receive, open and dispose of mail addressed to Debtor;

                  (d)      (i) to direct  account  debtors and any other parties
         liable for any payment  under any of the  Collateral to make payment of
         any and all monies due and to become due thereunder directly to Secured
         Party or as Secured  Party shall direct,  provided,  that Secured Party
         shall use reasonable efforts to give Debtor prior notice of the form of
         any such  communication and Debtor shall have one (1) business day from
         receipt  of  such  notice  to  provide  input  as to the  form  of such
         communication,   which  input  may  be  accepted  or  rejected  in  the
         reasonable  discretion of Secured Party; (ii) to receive payment of and
         receipt  for any and all  monies,  claims and other  amounts due and to
         become due at any time in respect of or arising out of any  Collateral;
         (iii) to sign and endorse any invoices, freight or express bills, bills
         of lading,  storage or  warehouse  receipts,  drafts  against  debtors,
         assignments,  proxies,  stock  powers,  verifications  and  notices  in
         connection   with  accounts  and  other   documents   relating  to  the
         Collateral;  (iv)  to  commence  and  prosecute  any  suit,  action  or
         proceeding  at law or in equity in any court of competent  jurisdiction
         to collect the  Collateral or any part thereof and to enforce any other
         right in respect of any Collateral;  (v) to defend any suit,  action or
         proceeding brought against Debtor with respect to any Collateral;  (vi)
         to settle, compromise or

                                       25
<PAGE>

         adjust  any  suit,  action  or  proceeding   described  above  and,  in
         connection  therewith,  to give such  discharges or releases as Secured
         Party may deem appropriate; (vii) to exchange any of the Collateral for
         other   Property  upon  any  merger,   consolidation,   reorganization,
         recapitalization  or other  readjustment  of the issuer thereof and, in
         connection therewith, deposit any of the Collateral with any committee,
         depositary,  transfer agent,  registrar or other designated agency upon
         such terms as Secured Party may determine; (viii) to add or release any
         guarantor,  indorser,  surety or other party to any of the  Collateral;
         (ix) to renew,  extend or otherwise  change the terms and conditions of
         any  of  the  Collateral;  (x) to  grant  or  issue  any  exclusive  or
         nonexclusive  license under or with respect to any of the  Intellectual
         Property; (xi) to endorse Debtor's name on all applications, documents,
         papers and  instruments  necessary  or  desirable  in order for Secured
         Party to use any of the Intellectual  Property;  (xii) to make, settle,
         compromise  or adjust  any  claims  under or  pertaining  to any of the
         Collateral (including,  without limitation,  claims under any policy of
         insurance);  and (xiii) to sell,  transfer,  pledge,  convey,  make any
         agreement  with respect to or otherwise deal with any of the Collateral
         as fully and completely as though Secured Party were the absolute owner
         thereof  for all  purposes,  and to do, at Secured  Party's  option and
         Debtor's  expense,  at any  time,  or from  time to time,  all acts and
         things  which  Secured  Party deems  necessary  to  protect,  preserve,
         maintain or realize upon the  Collateral and Secured  Party's  security
         interest therein.

         This power of attorney is a power coupled with an interest and shall be
irrevocable  until this  Agreement is terminated  in accordance  with its terms.
Secured Party shall be under no duty to exercise or withhold the exercise of any
of the rights, powers, privileges and options expressly or implicitly granted to
Secured Party in this  Agreement,  and shall not be liable for any failure to do
so or any delay in doing so. Neither Secured Party nor any Person  designated by
Secured  Party  shall be  liable  for any act or  omission  or for any  error of
judgment  or any mistake of fact or law except for gross  negligence  or willful
misconduct or as set forth in Section 4.18.  This power of attorney is conferred
on Secured  Party  solely to protect,  preserve,  maintain  and realize upon its
security interest in the Collateral.  Secured Party shall not be responsible for
any decline in the value of the Collateral and shall not be required to take any
steps to  preserve  rights  against  prior  parties or to  protect,  preserve or
maintain any Lien given to secure the Collateral.

         Section 5.2 Set-off. Each of Secured Party and the Lenders shall, after
the  occurrence  and during the  continuation  of an Event of Default,  have the
right to set-off  and apply  against  the  Obligations,  at any time and without
notice to Debtor,  any and all  deposits  (general or  special,  time or demand,
provisional or final) or other sums at any time credited by or owing from any of
Secured  Party or the Lenders to Debtor and  although  such  Obligations  may be
unmatured.  The rights and remedies of Secured  Party and the Lenders  hereunder
are in addition to other rights and  remedies  (including,  without  limitation,
other rights of set-off) that Secured Party and the Lenders may have.

         Section 5.3       [intentionally omitted]

         Section  5.4  Performance  by Secured  Party.  If Debtor  shall fail to
perform any covenant or agreement contained in this Agreement, Secured Party may
perform or attempt to perform such covenant or agreement on behalf of Debtor. In
such event, Debtor shall, at the request of Secured

                                       26
<PAGE>

Party, promptly pay any amount expended by Secured Party in connection with such
performance or attempted  performance  to Secured Party,  together with interest
thereon at the Default Rate from and including the date of such  expenditure  to
but excluding the date such  expenditure  is paid in full.  Notwithstanding  the
foregoing,  it is  expressly  agreed  that  Secured  Party  shall  not  have any
liability or responsibility  for the performance of any indebtedness,  liability
or obligation of Debtor under this Agreement.

         Section 5.5 License.  If no Event of Default shall have occurred and be
continuing, Debtor shall have the exclusive,  non-transferable right and license
to use the  Intellectual  Property in the  ordinary  course of business  and the
exclusive right to grant to other Persons  licenses and sublicenses with respect
to the Intellectual Property for full and fair consideration.  Debtor agrees not
to sell or assign its interest in, or grant any  sublicense  under,  the license
granted  under this  Section 5.5 without  the prior  written  consent of Secured
Party.

         Section 5.6 Change of  Depository.  In the event of the  termination by
any  financial  institution  in which any Deposit  Account is  maintained of any
agreement  with or for the benefit of Secured  Party,  or if any such  financial
institution  shall  fail to  comply  with any  material  provisions  of any such
agreement  or any  instructions  of Secured  Party in  accordance  with any such
agreement or this  Agreement,  or if Secured Party  determines in its reasonable
discretion  that the financial  condition of any such financial  institution has
materially  deteriorated,   Debtor  agrees  to  transfer  the  affected  Deposit
Account(s) to another  financial  institution  reasonably  acceptable to Secured
Party and cause such substitute financial institution to execute such agreements
as Secured Party may require, in form and substance acceptable to Secured Party,
to  ensure  that  Secured  Party  has a  perfected,  first  priority  collateral
assignment  of or security  interest in the  Deposit  Account(s)  held with such
substitute financial  institution.  If any affected Deposit Account is a lockbox
account,  Debtor  agrees to notify its  account  debtors  promptly  to remit all
payments which were being sent to the terminated Deposit Account directly to the
substitute Deposit Account.

         Section 5.7  Collection of Deposit  Accounts.  After the occurrence and
during the continuation of an Event of Default, upon written demand from Secured
Party to any  financial  institution  in which any of the Deposit  Accounts  are
maintained, each such financial institution is hereby authorized and directed by
Debtor to make payment  directly to Secured Party of the funds in or credited to
the Deposit  Accounts,  or such part thereof as Secured  Party may request,  and
each such  financial  institution  shall be fully  protected in relying upon the
written  statement of Secured Party that an Event of Default has occurred and is
continuing and that the Deposit Accounts are at the time of such demand assigned
hereunder  and that  Secured  Party is  entitled  to payment of the  Obligations
therefrom.  Secured  Party's receipt for sums paid to it pursuant to such demand
shall  be a  full  and  complete  release,  discharge  and  acquittance  to  the
depository or other financial  institution  making such payment to the extent of
the  amount  so paid.  Debtor  hereby  authorizes  Secured  Party,  upon (a) the
occurrence  and during the  continuation  of an Event of Default  consisting  of
Debtor's failure to make payment of any of the Obligations, or any part thereof,
or (b) any  acceleration of the maturity of the Obligations  upon the occurrence
of any Event of Default,  each as provided in the Credit  Agreement,  including,
without limitation  pursuant to Section 11.1(a) or Section 11.2(a) of the Credit
Agreement,  (i) to  withdraw,  collect  and  receipt  for  any  and  all  funds,
securities or other investments on deposit in

                                       27
<PAGE>

or payable on the Deposit Accounts, (ii) on behalf of Debtor to endorse the name
of  Debtor  upon any  checks,  drafts  or other  instruments  payable  to Debtor
evidencing  payment on the Deposit  Accounts,  and (iii) to surrender or present
for notation of withdrawal the passbook,  certificate or other documents  issued
to Debtor in connection  with the Deposit  Accounts.  No power granted herein to
Secured Party by Debtor shall terminate upon any disability of Debtor.

                                    ARTICLE 6

                                     Default

         Section  6.1 Rights  and  Remedies.  If an Event of Default  shall have
occurred and be  continuing,  Secured Party shall have the following  rights and
remedies (subject to Section 6.3):

                  (a) In addition to all other  rights and  remedies  granted to
         Secured  Party in this  Agreement  or in any other Loan  Document or by
         applicable law, Secured Party shall have all of the rights and remedies
         of a secured party under the UCC (whether or not the UCC applies to the
         affected  Collateral) and Secured Party may also, without notice except
         as specified  below,  sell the Collateral or any part thereof in one or
         more parcels at public or private sale, at any exchange, broker's board
         or at any of Secured Party's offices or elsewhere,  for cash, on credit
         or for future delivery,  and upon such other terms as Secured Party may
         deem  commercially  reasonable or otherwise as may be permitted by law.
         Without limiting the generality of the foregoing, Secured Party may (i)
         without demand or notice to Debtor, collect, receive or take possession
         of the  Collateral  or any part  thereof and for that  purpose  Secured
         Party may enter upon any  premises on which the  Collateral  is located
         and remove the  Collateral  therefrom or render it  inoperable,  and/or
         (ii) sell,  lease or otherwise  dispose of the Collateral,  or any part
         thereof,  in one or more parcels at public or private sale or sales, at
         Secured Party's offices or elsewhere, for cash, on credit or for future
         delivery,  and  upon  such  other  terms  as  Secured  Party  may  deem
         commercially  reasonable  or  otherwise  as may be  permitted  by  law.
         Secured Party shall have the right at any public sale or sales, and, to
         the extent  permitted by applicable  law, at any private sale or sales,
         to bid  (which  bid  may  be,  in  whole  or in  part,  in the  form of
         cancellation of indebtedness)  and become a purchaser of the Collateral
         or any part  thereof free of any right or equity of  redemption  on the
         part of Debtor, which right or equity of redemption is hereby expressly
         waived and  released  by  Debtor.  Upon the  request of Secured  Party,
         Debtor shall  assemble the  Collateral and make it available to Secured
         Party at any place  designated  by  Secured  Party  that is  reasonably
         convenient  to Debtor and Secured  Party.  Debtor  agrees that  Secured
         Party shall not be obligated to give more than five days prior  written
         notice of the time and place of any  public  sale or of the time  after
         which  any  private  sale may take  place and that  such  notice  shall
         constitute  reasonable notice of such matters.  Secured Party shall not
         be obligated to make any sale of Collateral  if it shall  determine not
         to do so,  regardless of the fact that notice of sale of Collateral may
         have been given.  Secured  Party may,  without  notice or  publication,
         adjourn  any public or private  sale or cause the same to be  adjourned
         from time to time by announcement at the time and place fixed for sale,
         and such  sale may,  without  further  notice,  be made at the time and
         place to which the same was so  adjourned.  Debtor  shall be liable for
         all expenses of retaking,

                                       28
<PAGE>

         holding, preparing for sale or the like, and all attorneys' fees, legal
         expenses  and other costs and  expenses  incurred  by Secured  Party in
         connection  with the collection of the  Obligations and the enforcement
         of Secured  Party's  rights under this  Agreement.  Debtor shall remain
         liable  for  any  deficiency  if the  Proceeds  of any  sale  or  other
         disposition  of  the  Collateral   applied  to  the   Obligations   are
         insufficient  to pay the  Obligations in full.  Secured Party may apply
         the  Collateral  against  the  Obligations  in such order and manner as
         Secured  Party  may elect in its sole  discretion.  Debtor  waives  all
         rights  of  marshaling,  valuation  and  appraisal  in  respect  of the
         Collateral.  Any cash held by Secured Party as Collateral  and all cash
         proceeds  received  by  Secured  Party  in  respect  of  any  sale  of,
         collection  from  or  other  realization  upon  all or any  part of the
         Collateral  may, in the discretion of Secured Party, be held by Secured
         Party as collateral for, and then or at any time thereafter  applied in
         whole or in part by Secured  Party  against,  the  Obligations  in such
         order as Secured Party shall  select.  Any surplus of such cash or cash
         proceeds and interest  accrued  thereon,  if any, held by Secured Party
         and  remaining  after payment in full of all the  Obligations  shall be
         paid  over to Debtor  or to  whomsoever  may be  lawfully  entitled  to
         receive  such  surplus;  provided  that  Secured  Party  shall  have no
         obligation  to invest or otherwise  pay interest on any amounts held by
         it in connection with or pursuant to this Agreement.

                  (b) Secured Party may cause any or all of the Collateral  held
         by it to be  transferred  into the name of Secured Party or the name or
         names of Secured Party's nominee or nominees.

                  (c) Secured Party may exercise any and all rights and remedies
         of Debtor  under or in respect of the  Collateral,  including,  without
         limitation, any and all rights of Debtor to demand or otherwise require
         payment of any amount under, or performance of any provision of, any of
         the  Collateral  and any and all voting rights and corporate  powers in
         respect of the Collateral.

                  (d) Secured Party may collect or receive all money or Property
         at any time payable or  receivable on account of or in exchange for any
         of the Collateral, but shall be under no obligation to do so.

                  (e) On any sale of the  Collateral,  Secured  Party is  hereby
         authorized  to comply with any  limitation  or  restriction  with which
         compliance is necessary,  in the view of Secured  Party's  counsel,  in
         order to avoid any  violation of  applicable  law or in order to obtain
         any required  approval of the purchaser or purchasers by any applicable
         Governmental Authority.

                  (f) For  purposes of enabling  Secured  Party to exercise  its
         rights and remedies  under this Section 6.1 and enabling  Secured Party
         and its  successors  and  assigns  to enjoy  the full  benefits  of the
         Collateral,  Debtor  hereby  grants to  Secured  Party an  irrevocable,
         nonexclusive  license  (exercisable without payment of royalty or other
         compensation  to Debtor) to use,  assign,  license or sublicense any of
         the  Intellectual  Property that  constitutes a part of the Collateral,
         including in such license  reasonable  access to all media in which any
         of the  licensed  items  may be  recorded  or stored  and all  computer
         programs  used for the

                                       29
<PAGE>

         completion  or printout  thereof.  This license shall also inure to the
         benefit of all successors, assigns and transferees of Secured Party.

                  (g) Secured  Party may require  that Debtor  assign all of its
         right,  title and interest in and to the  Intellectual  Property or any
         part thereof to Secured Party or such other Person as Secured Party may
         designate pursuant to documents satisfactory to Secured Party.

         Section 6.2       Registration Rights, Private Sales, Etc.

                  (a) If Secured Party shall  determine to exercise its right to
         sell all or any of the Pledged Shares  pursuant to Section 6.1,  Debtor
         agrees that,  upon the request of Secured  Party (which  request may be
         made by Secured Party in its sole discretion),  Debtor will, at its own
         expense:

                           (i) execute and deliver,  and use its best efforts to
                  cause each issuer of any of the Pledged Shares contemplated to
                  be sold and the directors and officers  thereof to execute and
                  deliver, all such agreements,  documents and instruments,  and
                  do or cause to be done all such other acts and things,  as may
                  be  reasonably  necessary  or, in the  reasonable  opinion  of
                  Secured Party, advisable to register such Pledged Shares under
                  the provisions of the Securities Act (as hereinafter  defined)
                  and to cause the  registration  statement  relating thereto to
                  become  effective  and to remain  effective for such period as
                  prospectuses  are required by law to be furnished  and to make
                  all  amendments  and  supplements  thereto  and to the related
                  prospectus  which,  in  the  opinion  of  Secured  Party,  are
                  necessary   or   advisable,   all  in   conformity   with  the
                  requirements   of  the   Securities  Act  and  the  rules  and
                  regulations  of  the   Securities   and  Exchange   Commission
                  applicable thereto;

                           (ii) if reasonably  necessary  or, in the  reasonable
                  opinion of Secured Party,  advisable,  use its best efforts to
                  qualify  such  Pledged  Shares  under  all  applicable   state
                  securities  or "Blue  Sky"  laws and to obtain  all  necessary
                  governmental approvals for the sale of such Pledged Shares, as
                  requested by Secured Party;

                           (iii) if reasonably  necessary or, in the  reasonable
                  opinion of Secured Party, advisable, cause each such issuer to
                  make   available   to  its  security   holders,   as  soon  as
                  practicable,  an  earnings  statement  which will  satisfy the
                  provisions of Section 11(a) of the Securities Act;

                           (iv) do or cause to be done all such  other  acts and
                  things as may be reasonably  necessary or  appropriate to make
                  such sale of the Pledged  Shares or any part thereof valid and
                  binding and in compliance with applicable law; and

                           (v) bear all reasonable costs and expenses, including
                  reasonable  attorneys'  fees, of carrying out its  obligations
                  under this Section 6.2.

                                       30
<PAGE>

                  (b)  Debtor  recognizes  that  Secured  Party may be unable to
         effect a public sale of any or all of the  Pledged  Shares by reason of
         certain  prohibitions  contained  in the  Securities  Act of  1933,  as
         amended from time to time (the  "Securities  Act") and applicable state
         securities  laws but may be  compelled to resort to one or more private
         sales thereof to a restricted  group of purchasers  who will be obliged
         to agree,  among other things, to acquire such Pledged Shares for their
         own account for investment and not with a view to the  distribution  or
         resale thereof.  Debtor  acknowledges  and agrees that any such private
         sale may result in prices and other terms less  favorable to the seller
         than  if  such  sale  were a  public  sale  and,  notwithstanding  such
         circumstances,  agrees that any such private sale shall,  to the extent
         permitted  by law,  be  deemed  to  have  been  made in a  commercially
         reasonable manner. Neither Secured Party nor the Lenders shall be under
         any  obligation  to delay a sale of any of the  Pledged  Shares for the
         period of time  necessary  to permit the issuer of such  securities  to
         register  such  securities  under  the  Securities  Act  or  under  any
         applicable state securities laws, even if such issuer would agree to do
         so.

                  (c) Debtor  further  agrees to do or cause to be done,  to the
         extent that Debtor may do so under  applicable law, all such other acts
         and  things as may be  necessary  to make such  sales or resales of any
         portion  or  all  of  the  Pledged  Shares  valid  and  binding  and in
         compliance  with  any and all  applicable  laws,  regulations,  orders,
         writs,   injunctions,   decrees  or  awards  of  any  and  all  courts,
         arbitrators  or  governmental  instrumentalities,  domestic or foreign,
         having  jurisdiction  over  any such  sale or  sales,  all at  Debtor's
         expense.  Debtor  further  agrees that a breach of any of the covenants
         contained in this Section 6.2 will cause irreparable  injury to Secured
         Party and the Lenders and that  Secured  Party and the Lenders  have no
         adequate remedy at law in respect of such breach and, as a consequence,
         agrees that each and every covenant contained in this Section 6.2 shall
         be specifically  enforceable  against Debtor,  and Debtor hereby waives
         and agrees,  to the fullest extent permitted by law, not to assert as a
         defense  against an action for specific  performance  of such covenants
         that (i)  Debtor's  failure to perform  such  covenants  will not cause
         irreparable  injury to Secured  Party and the  Lenders or (ii)  Secured
         Party and the Lenders have an adequate remedy at law in respect of such
         breach.  Debtor further  acknowledges the impossibility of ascertaining
         the amount of damages  which would be suffered by Secured Party and the
         Lenders by reason of a breach of any of the covenants contained in this
         Section 6.2 and, consequently,  agrees that, if Debtor shall breach any
         of such covenants and Secured Party or any Lender shall sue for damages
         for such breach,  Debtor shall pay to Secured Party or such Lender,  as
         liquidated  damages and not as a penalty,  an aggregate amount equal to
         the  value of the  Pledged  Shares  on the date  Secured  Party or such
         Lender shall demand compliance with this Section 6.2.

                  (d)  DEBTOR  HEREBY  AGREES  TO  INDEMNIFY,  PROTECT  AND SAVE
         HARMLESS  SECURED  PARTY AND THE  LENDERS AND ANY  CONTROLLING  PERSONS
         THEREOF  WITHIN THE MEANING OF THE  SECURITIES ACT FROM AND AGAINST ANY
         AND ALL  LIABILITIES,  SUITS,  CLAIMS,  COSTS AND  EXPENSES  (INCLUDING
         REASONABLE COUNSEL FEES AND DISBURSEMENTS) ARISING UNDER THE SECURITIES
         ACT,  THE  SECURITIES  AND  EXCHANGE  ACT  OF  1934,  AS  AMENDED,  ANY
         APPLICABLE STATE

                                       31
<PAGE>

         SECURITIES  STATUTE,  OR AT  COMMON  LAW,  OR  PURSUANT  TO  ANY  OTHER
         APPLICABLE  LAW IN  CONNECTION  WITH THE SALE OF ANY  SECURITIES OR THE
         EXERCISE OF ANY OTHER RIGHT OR REMEDY OF SECURED PARTY, INSOFAR AS SUCH
         LIABILITIES,  SUITS,  CLAIMS,  COSTS AND EXPENSES  ARISE OUT OF, OR ARE
         BASED UPON,  ANY UNTRUE  STATEMENT  OR ALLEGED  UNTRUE  STATEMENT  OF A
         MATERIAL  FACT MADE BY ANY LOAN  PARTY IN  CONNECTION  WITH THE SALE OR
         PROPOSED  SALE OF ANY PART OF THE  COLLATERAL,  OR ARISES OUT OF, OR IS
         BASED UPON, THE OMISSION OR ALLEGED OMISSION BY ANY LOAN PARTY TO STATE
         A  MATERIAL  FACT  REQUIRED  TO BE STATED IN  CONNECTION  THEREWITH  OR
         NECESSARY  TO  MAKE  THE  STATEMENTS  MADE  NOT  MISLEADING;  PROVIDED,
         HOWEVER, THAT DEBTOR SHALL NOT BE LIABLE IN ANY SUCH CASE TO THE EXTENT
         THAT ANY SUCH LIABILITIES,  SUITS, CLAIMS, COSTS AND EXPENSES ARISE OUT
         OF, OR ARE BASED UPON, ANY UNTRUE STATEMENT OR ALLEGED UNTRUE STATEMENT
         OR OMISSION OR ALLEGED OMISSION MADE IN RELIANCE UPON AND IN CONFORMITY
         WITH WRITTEN  INFORMATION  FURNISHED TO DEBTOR BY SECURED  PARTY OR ANY
         LENDER  SPECIFICALLY  FOR  INCLUSION  IN  CONNECTION   THEREWITH.   THE
         FOREGOING  INDEMNITY  AGREEMENT  IS IN  ADDITION  TO ANY  INDEBTEDNESS,
         LIABILITY  OR  OBLIGATION  THAT  DEBTOR MAY  OTHERWISE  HAVE TO SECURED
         PARTY, ANY LENDER OR ANY CONTROLLING PERSON THEREOF.

         Section  6.3  Compliance  with Laws.  Notwithstanding  anything  to the
contrary contained in any Loan Document or in any other agreement, instrument or
document  executed by Debtor and delivered to Secured Party,  Secured Party will
not take any action  pursuant  to this  Agreement  or any  document  referred to
herein which would  constitute or result in any assignment of any FCC license or
any change of control (whether de jure or de facto) of Debtor if such assignment
of any FCC license or change of control would require,  under then existing law,
the prior approval of the FCC or any other Governmental  Authority without first
obtaining such prior approval of the FCC or other Governmental  Authority.  Upon
the  occurrence  of an Event of  Default  or at any time  thereafter  during the
continuance  thereof,  subject to the terms and  conditions  of this  Agreement,
Debtor  agrees to take any action  which  Secured  Party may request in order to
obtain from the FCC or such other Governmental Authority such approval as may be
necessary  to enable  Secured  Party to  exercise  and enjoy the full rights and
benefits  granted to Secured  Party by this  Agreement  and the other  documents
referred to above,  including  specifically,  at the cost and expense of Debtor,
the use of Debtor's  best efforts to assist in obtaining  approval of the FCC or
such other Governmental Authority for any action or transaction  contemplated by
this  Agreement  for which such  approval is or shall be  required  by law,  and
specifically,  without limitation,  upon request, to prepare, sign and file with
the FCC or such other  Governmental  Authority the  assignor's  or  transferor's
portion of any  application  or  applications  for consent to the  assignment of
license or transfer of control  necessary or appropriate under the FCC's or such
other  Governmental  Authority's  rules and  regulations for approval of (a) any
sale or other disposition of the Collateral by or on behalf of Secured Party, or
(b) any assumption by Secured Party of voting rights in the Collateral  effected
in accordance with the terms of this Agreement.

                                       32
<PAGE>

                                    ARTICLE 7

                                  Miscellaneous

         Section 7.1 No Waiver;  Cumulative Remedies.  No failure on the part of
Secured Party to exercise and no delay in  exercising,  and no course of dealing
with  respect  to, any right,  power or  privilege  under this  Agreement  shall
operate as a waiver  thereof,  nor shall any single or partial  exercise  of any
right,  power or privilege  under this  Agreement  preclude any other or further
exercise  thereof or the exercise of any other right,  power or  privilege.  The
rights and  remedies  provided  for in this  Agreement  are  cumulative  and not
exclusive of any rights and remedies provided by law.

         Section 7.2  Successors and Assigns.  This  Agreement  shall be binding
upon and inure to the benefit of Debtor and Secured  Party and their  respective
heirs,  successors and permitted assigns,  except that Debtor may not assign any
of its rights,  indebtedness,  liabilities or  obligations  under this Agreement
without the prior written consent of Secured Party.

         Section 7.3 Entire Agreement;  Amendment . THIS AGREEMENT  EMBODIES THE
FINAL,  ENTIRE  AGREEMENT  AMONG THE PARTIES  HERETO AND  SUPERSEDES ANY AND ALL
PRIOR  COMMITMENTS,  AGREEMENTS,  REPRESENTATIONS  AND  UNDERSTANDINGS,  WHETHER
WRITTEN  OR  ORAL,  RELATING  TO  THE  SUBJECT  MATTER  HEREOF  AND  MAY  NOT BE
CONTRADICTED OR VARIED BY EVIDENCE OF PRIOR,  CONTEMPORANEOUS OR SUBSEQUENT ORAL
AGREEMENTS OR  DISCUSSIONS  OF THE PARTIES  HERETO.  THERE ARE NO UNWRITTEN ORAL
AGREEMENTS  AMONG THE PARTIES  HERETO.  The  provisions of this Agreement may be
amended or waived only by an instrument in writing signed by the parties hereto,
except as provided in Section 4.15(a).

         Section 7.4 Notices. All notices and other communications  provided for
in this  Agreement  shall be given or made,  and shall be deemed  effective,  as
provided in the Credit Agreement.

         Section 7.5  Governing  Law;  Submission  to  Jurisdiction;  Service of
Process.  EXCEPT  AS MAY BE  EXPRESSLY  STATED  TO THE  CONTRARY  IN THE  CREDIT
AGREEMENT,  THIS  AGREEMENT  SHALL BE GOVERNED BY, AND  CONSTRUED IN  ACCORDANCE
WITH,  THE LAWS OF THE STATE OF NEW YORK  (WITHOUT  REGARD TO  CONFLICTS OF LAWS
PRINCIPLES)  AND EACH OF THE PARTIES  HERETO CHOOSE THE LAWS OF THE STATE OF NEW
YORK TO GOVERN THIS AGREEMENT  PURSUANT TO N.Y. GEN.  OBLIG.  LAW SECTION 5-1401
(CONSOL.  1995) AND  APPLICABLE  LAWS OF THE U.S.  DEBTOR HEREBY  SUBMITS TO THE
NON-EXCLUSIVE  JURISDICTION  OF EACH  OF (A) THE  U.S.  DISTRICT  COURT  FOR THE
SOUTHERN DISTRICT OF NEW YORK, (B) ANY NEW YORK STATE COURT SITTING IN NEW YORK,
NEW YORK, (C) THE U.S.  DISTRICT COURT FOR THE NORTHERN  DISTRICT OF TEXAS,  AND
(D) ANY TEXAS STATE COURT SITTING IN DALLAS COUNTY,  TEXAS,  FOR THE PURPOSES OF
ALL LEGAL  PROCEEDINGS  ARISING OUT

                                       33
<PAGE>

OF OR RELATING TO THIS  AGREEMENT,  ANY OTHER LOAN DOCUMENT OR THE  TRANSACTIONS
CONTEMPLATED  HEREBY OR THEREBY.  DEBTOR IRREVOCABLY  CONSENTS TO THE SERVICE OF
ANY AND ALL PROCESS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES OF
SUCH  PROCESS TO DEBTOR AT ITS  ADDRESS FOR  NOTICES  SET FORTH  UNDERNEATH  ITS
SIGNATURE  HERETO.  DEBTOR  HEREBY  IRREVOCABLY  WAIVES,  TO THE FULLEST  EXTENT
PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING
OF THE VENUE OF ANY SUCH  PROCEEDING  BROUGHT IN SUCH A COURT AND ANY CLAIM THAT
ANY SUCH PROCEEDING  BROUGHT IN SUCH A COURT HAS BEEN BROUGHT IN AN INCONVENIENT
FORUM.

         Section 7.6 Headings.  The headings,  captions and arrangements used in
this Agreement are for convenience only and shall not affect the  interpretation
of this Agreement.

         Section  7.7   Survival  of   Representations   and   Warranties.   All
representations  and  warranties  made in this  Agreement or in any  certificate
delivered  pursuant  hereto  shall  survive the  execution  and delivery of this
Agreement,   and  no   investigation   by  Secured   Party   shall   affect  the
representations and warranties or the right of Secured Party to rely upon them.

         Section 7.8 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.

         Section 7.9 Waiver of Bond.  In the event  Secured  Party seeks to take
possession of any or all of the  Collateral by judicial  process,  Debtor hereby
irrevocably  waives any bonds and any surety or security  relating  thereto that
may be required by applicable law as an incident to such possession,  and waives
any demand for possession prior to the commencement of any such suit or action.

         Section 7.10  Severability.  Any provision of this  Agreement  which is
determined   by  a  court  of  competent   jurisdiction   to  be  prohibited  or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability  without  invalidating the
remaining   provisions  of  this   Agreement,   and  any  such   prohibition  or
unenforceability   in  any   jurisdiction   shall  not   invalidate   or  render
unenforceable such provision in any other jurisdiction.

         Section 7.11  Construction.  Debtor and Secured Party  acknowledge that
each of them has had the benefit of legal counsel of its own choice and has been
afforded an opportunity to review this Agreement with its legal counsel and that
this  Agreement  shall be construed as if jointly  drafted by Debtor and Secured
Party.

         Section 7.12  Termination.  If all of the  Obligations  shall have been
paid and performed in full and all Commitments of the Lenders shall have expired
or terminated, Secured Party shall, upon the written request of Debtor, promptly
execute and deliver to Debtor a proper  instrument or instruments  acknowledging
the release and termination of the security interests created by this Agreement,
and shall duly assign and deliver to Debtor  (without  recourse  and without any

                                       34
<PAGE>

representation  or  warranty  except  as may be set  forth in  Section  4.18 and
Section 5.1) such of the Collateral as may be in the possession of Secured Party
and  has  not  previously  been  sold  or  otherwise  applied  pursuant  to this
Agreement.

         Section 7.13 Waiver of Jury Trial.  TO THE FULLEST EXTENT  PERMITTED BY
APPLICABLE  LAW,  EACH OF THE PARTIES  HERETO HEREBY  IRREVOCABLY  AND EXPRESSLY
WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION,  PROCEEDING  OR  COUNTERCLAIM
(WHETHER BASED UPON CONTRACT,  TORT OR OTHERWISE)  ARISING OUT OF OR RELATING TO
THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THE ACTIONS OF SECURED
PARTY IN THE NEGOTIATION, ADMINISTRATION OR ENFORCEMENT THEREOF.

         Section 7.14 Amendment and Restatement. This Agreement shall constitute
an  amendment  and  restatement  of all, but not an  extinguishment,  discharge,
satisfaction or novation of any,  indebtedness,  liabilities  and/or obligations
(including, without limitation, the "Obligations" as such term is defined in the
Original Security  Agreement) of Debtor under the Original  Security  Agreement.
All Liens  created  under  and/or  evidenced  by this  Agreement,  with the same
perfection  and  priority  under this  Agreement  as existed  under the Original
Security Agreement.

                                       35
<PAGE>

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

                             DEBTOR:
                             ------

                             SAVVIS COMMUNICATIONS CORPORATION,
                             a Missouri corporation

                             By:      /s/ David J. Frear
                                --------------------------------------------
                             Name:    David J. Frear
                             Title:   Executive Vice President,
                                      Chief Financial Officer

                             Address for Notices:
                             -------------------
                             12851 Worldgate Drive
                             Herndon, Virginia 20170
                             Attention:  Chief Financial Officer
                             Telephone:  (703) 234-8000
                             Telecopy:   (703) 234-8309

                             with a copy (which shall not constitute notice) to:

                             717 Office Parkway
                             St. Louis, Missouri 63141
                             Attention:  General Counsel
                             Telephone:  (314) 468-7500
                             Telecopy:   (314) 468-7550

                             SECURED PARTY:
                             -------------

                             NORTEL NETWORKS INC.,
                             as Administrative Agent

                             By:      /s/ Mitchell L. Stone
                                --------------------------------------------
                             Name:    Mitchell L. Stone
                             Title:   Director, Customer Finance

                                       36
<PAGE>

                             Address for Notices:
                             -------------------
                             Nortel Networks Inc.
                             Mail Stop 991 15 A40
                             2221 Lakeside Boulevard
                             Richardson, Texas 75082-4399
                             Attention:  Mitchell L. Stone
                                         Director, Customer Finance
                             Telephone:  972-684-0395
                             Telecopy:   972-684-3679

                             and

                             Nortel Networks Inc.
                             Mail Stop 468/05/B40
                             2100 Lakeside Blvd.
                             Richardson, Texas  75082-4399
                             Attention:  Kimberly Poe
                                         Director, Loan Administration
                             Telephone:  972-684-7687
                             Telecopy:   972-685-3613

                                       37
<PAGE>

STATE OF VIRGINIA

COUNTY OF FAIRFAX

         This instrument was acknowledged  before me this 13th day of September,
2000, by David J. Frear, the Executive Vice President,  Chief Financial  Officer
of SAVVIS COMMUNICATIONS  CORPORATION, a Missouri corporation, on behalf of such
corporation.

         [SEAL]                   /s/ Inga C. Tracy
                                  ----------------------------------------------
                                  Notary Public in and for the State of Virginia
                                  Print Name: Inga C. Tracy

My commission expires: 04/30/04
                      ---------

STATE OF TEXAS

COUNTY OF DALLAS

         This instrument was acknowledged  before me this 13th day of September,
2000, by Mitchell L. Stone,  the Director,  Customer  Finance of NORTEL NETWORKS
INC., a Delaware corporation, on behalf of such corporation.

         [SEAL]                   /s/ Dianna L. Irish
                                  ----------------------------------------------
                                  Notary Public in and for the State of Texas
                                  Print Name: Dianna L. Irish

My commission expires: 07/05/02
                      ---------

                                       38
<PAGE>

                                                     SCHEDULE 1

                                                INTELLECTUAL PROPERTY

<TABLE>
<CAPTION>
====================================================================================================================================
                                                               PATENTS
------------------------------------------------------------------------------------------------------------------------------------
      Owner of Record           Country of       Patent         Application or     Registration or      Issue Date       Expiration
                                  Origin      Identification    Registration No.      Filing Date        (if known)          Date
------------------------------------------------------------------------------------------------------------------------------------
<S>                           <C>             <C>               <C>                <C>                  <C>              <C>
None.
------------------------------------------------------------------------------------------------------------------------------------

====================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
====================================================================================================================================
                                                             PATENT LICENSES
------------------------------------------------------------------------------------------------------------------------------------
               Name of Agreement                                Patent                                  Date of Agreement
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                 <C>                                              <C>
None.
------------------------------------------------------------------------------------------------------------------------------------

====================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                TRADEMARKS
------------------------------------------------------------------------------------------------------------------------------------
Trademark               Country               Filing       Application     Registration    Registration         Status      Class/
                                               Date           Number           Date            Number                       Goods
------------------------------------------------------------------------------------------------------------------------------------
<S>                     <C>                 <C>             <C>              <C>             <C>              <C>           <C>
Diamond.Net ISP, Inc.   USA                  3/28/1997      75/266,524       02/10/1998      2,135,966        Registered    38
------------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------------
Savvis                  Argentina            08/10/1999     2,233,944                                         Pending       38
------------------------------------------------------------------------------------------------------------------------------------
Savvis                  Australia            09/01/1999     805747                                            Pending       38
------------------------------------------------------------------------------------------------------------------------------------
Savvis                  Austria              08/09/1999     AM 4944/99                                        Pending
------------------------------------------------------------------------------------------------------------------------------------
Savvis                  Benelux              08/13/1999     944.192                                           Pending       38,42
------------------------------------------------------------------------------------------------------------------------------------
Savvis                  Bermuda              09/28/1999     31093                                             Pending
------------------------------------------------------------------------------------------------------------------------------------
Savvis                  Brazil               10/20/1999     N/A                                               Pending
------------------------------------------------------------------------------------------------------------------------------------
Savvis                  Canada               08/06/1999     N/A                                               Pending
------------------------------------------------------------------------------------------------------------------------------------
Savvis                  Cayman Islands       08/06/1999     N/A                                               Pending
------------------------------------------------------------------------------------------------------------------------------------
Savvis                  Chile                09/28/1999     462.343          02/23/2000      562.134          Registered    36
------------------------------------------------------------------------------------------------------------------------------------
Savvis                  China                10/26/1999     9900126680                                        Pending
------------------------------------------------------------------------------------------------------------------------------------
Savvis                  Colombia             08/06/1999     99055381                                          Pending
------------------------------------------------------------------------------------------------------------------------------------

                                                                 39
<PAGE>

<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                TRADEMARKS
------------------------------------------------------------------------------------------------------------------------------------
Trademark               Country               Filing       Application     Registration    Registration         Status      Class/
                                               Date           Number           Date            Number                       Goods
------------------------------------------------------------------------------------------------------------------------------------
<S>                     <C>                 <C>             <C>              <C>             <C>              <C>           <C>
Savvis                  Denmark              08/10/1999     VA 1999 03241    06/02/2000      VR 2000 02409    Registered    9,38,42
------------------------------------------------------------------------------------------------------------------------------------
Savvis                  Finland              08/13/1999     T199902524                                        Pending
------------------------------------------------------------------------------------------------------------------------------------
Savvis                  France               08/10/1999     99 807 353       08/10/1999      99 807 353       Registered
------------------------------------------------------------------------------------------------------------------------------------
Savvis                  Germany              08/11/1999     39948151.6/38    02/24/2000      399 48 151       Registered
------------------------------------------------------------------------------------------------------------------------------------
Savvis                  Greece               12/27/1999     142742                                            Pending       38,42
------------------------------------------------------------------------------------------------------------------------------------
Savvis                  Hong Kong            09/02/1999     99/12015         09/02/1999      6116/2000        Registered
------------------------------------------------------------------------------------------------------------------------------------
Savvis                  India                09/08/1999     875438                                            Pending       16
------------------------------------------------------------------------------------------------------------------------------------
Savvis                  Indonesia            08/10/1999     J99-14299                                         Pending
------------------------------------------------------------------------------------------------------------------------------------
Savvis                  Ireland              08/09/1999     99/2711                                           Pending       38
------------------------------------------------------------------------------------------------------------------------------------
Savvis                  Italy                08/06/1999     N/A                                               Pending
------------------------------------------------------------------------------------------------------------------------------------
Savvis                  Japan                09/24/1999     78023/1999                                        Pending
------------------------------------------------------------------------------------------------------------------------------------
Savvis                  Malaysia             09/27/1999     99/09513                                          Pending
------------------------------------------------------------------------------------------------------------------------------------
Savvis                  Mexico               08/19/1999     387764                                            Pending
------------------------------------------------------------------------------------------------------------------------------------
Savvis                  New Zealand          08/06/1999     314238                                            Pending
------------------------------------------------------------------------------------------------------------------------------------
Savvis                  Norway               08/10/1999     99.07982         11/10/1999      704.008          Registered
------------------------------------------------------------------------------------------------------------------------------------
Savvis                  Oman                 08/22/1999     20718                                             Pending       38
------------------------------------------------------------------------------------------------------------------------------------
Savvis                  Panama               01/07/2000     104756                                            Pending       42
------------------------------------------------------------------------------------------------------------------------------------
Savvis                  Peru                 08/26/1999     90061             2/14/2000      20335            Registered
------------------------------------------------------------------------------------------------------------------------------------
Savvis                  Philippines          08/06/1999     4-1999-000576                                     Pending
------------------------------------------------------------------------------------------------------------------------------------
Savvis                  Portugal             05/22/2000     346732                                            Pending       38
------------------------------------------------------------------------------------------------------------------------------------
Savvis                  Qatar                08/22/1999     21227                                             Pending
------------------------------------------------------------------------------------------------------------------------------------
Savvis                  Saudi Arabia         01/30/2000     62338                                             Pending
------------------------------------------------------------------------------------------------------------------------------------
Savvis                  Singapore            08/11/1999     T99/08532F                                        Pending
------------------------------------------------------------------------------------------------------------------------------------
Savvis                  South Africa         08/11/1999     99/14532                                          Pending
------------------------------------------------------------------------------------------------------------------------------------
Savvis                  South Korea          08/11/1999     99-11609                                          Pending       38
------------------------------------------------------------------------------------------------------------------------------------
Savvis                  Spain                11/04/1999     2268139                                           Pending       38
------------------------------------------------------------------------------------------------------------------------------------
Savvis                  Sweden               08/11/1999     99-05606                                          Pending       35,38,42
------------------------------------------------------------------------------------------------------------------------------------
Savvis                  Switzerland          08/10/1999     07169/1999                                        Pending
------------------------------------------------------------------------------------------------------------------------------------
Savvis                  Taiwan               08/06/1999     N/A                                               Pending
------------------------------------------------------------------------------------------------------------------------------------
Savvis                  Thailand             09/28/1999     399301                                            Pending       38
------------------------------------------------------------------------------------------------------------------------------------

                                                                 40
<PAGE>

<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                TRADEMARKS
------------------------------------------------------------------------------------------------------------------------------------
Trademark               Country               Filing       Application     Registration    Registration         Status      Class/
                                               Date           Number           Date            Number                       Goods
------------------------------------------------------------------------------------------------------------------------------------
<S>                     <C>                 <C>             <C>              <C>             <C>              <C>           <C>
Savvis                  Trinidad & Tobago    08/06/1999     N/A                                               Pending
------------------------------------------------------------------------------------------------------------------------------------
Savvis                  United Arab EMR      02/14/2000     35012                                             Pending       38
------------------------------------------------------------------------------------------------------------------------------------
Savvis                  United Kingdom       08/12/1999     2205574                                           Pending       38
------------------------------------------------------------------------------------------------------------------------------------
Savvis                  Venezuela            03/30/2000     2000-005288                                       Pending
------------------------------------------------------------------------------------------------------------------------------------
Savvis                  USA                  10/06/1999     75/816754
------------------------------------------------------------------------------------------------------------------------------------
Savvis Communications   USA                  11/26/1996     75/204,404       04/07/1998      2,148,947        Registered    38
------------------------------------------------------------------------------------------------------------------------------------
BPP                     USA                  03/16/1998     75/451055
------------------------------------------------------------------------------------------------------------------------------------
Miscellaneous Design    USA                  03/28/1997     75/266524        02/10/1998      2135966
------------------------------------------------------------------------------------------------------------------------------------
Privatenap              USA                  10/06/1999     75/816756
------------------------------------------------------------------------------------------------------------------------------------
Proactive Network       USA                  10/06/1999     75/816557
------------------------------------------------------------------------------------------------------------------------------------
Proconnect              USA                  10/06/1999     75/816511
------------------------------------------------------------------------------------------------------------------------------------
Prolink                 USA                  10/06/1999     75/816915        07/04/2000      2364749
------------------------------------------------------------------------------------------------------------------------------------
Promanaged              USA                  10/06/1999     75/816755
------------------------------------------------------------------------------------------------------------------------------------
Promanaged Plus         USA                  10/06/1999     75/816753
------------------------------------------------------------------------------------------------------------------------------------
Prosecure               USA                  10/06/1999     75/816560
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
====================================================================================================================================
                                                            TRADEMARK LICENSES
------------------------------------------------------------------------------------------------------------------------------------
               Name of Agreement                               Parties                                  Date of Agreement
------------------------------------------------------------------------------------------------------------------------------------
<S>                                           <C>                                                     <C>
None.
====================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
====================================================================================================================================
                                                                COPYRIGHTS
====================================================================================================================================
      Owner of Record         Country of          Copyright       Applications or    Registration or   Expiration Date       Title
                             Registration                         Registration No.     Filing Date
====================================================================================================================================
<S>                          <C>                 <C>              <C>                <C>               <C>                 <C>
None.
------------------------------------------------------------------------------------------------------------------------------------

====================================================================================================================================
</TABLE>

                                                                 41
<PAGE>
<TABLE>
<CAPTION>
====================================================================================================================================
                                                            COPYRIGHT LICENSES
====================================================================================================================================
           Name of Agreement                               Copyright                                    Date of Approval
====================================================================================================================================
<S>                                            <C>                                                     <C>
None.
------------------------------------------------------------------------------------------------------------------------------------

====================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
====================================================================================================================================
                                                              SERVICE MARKS
====================================================================================================================================
<S>      <C>
Superior Performance
By Design (sm)
------------------------------------------------------------------------------------------------------------------------------------
SAVVIS ProActive Network (sm)
------------------------------------------------------------------------------------------------------------------------------------
SAVVIS ProConnect (SM)
------------------------------------------------------------------------------------------------------------------------------------
SAVVIS ProManaged (sm)
------------------------------------------------------------------------------------------------------------------------------------
PrivateNaps (sm)
------------------------------------------------------------------------------------------------------------------------------------
ProSecure (sm)
------------------------------------------------------------------------------------------------------------------------------------
Financial Xchange (tm)
------------------------------------------------------------------------------------------------------------------------------------
SNA-2-Xchange (tm)
------------------------------------------------------------------------------------------------------------------------------------
Intelligent IP Networking for Dynamic Companies (sm)
====================================================================================================================================
</TABLE>

                                       42
<PAGE>

                                   SCHEDULE 2

                DEPOSIT ACCOUNTS AND CERTAIN INVESTMENT PROPERTY

--------------------------------------------------------------------------------
Account Type                 Bank or Financial Institution      Account Number
--------------------------------------------------------------------------------
Operating Account            Bank of America                    10177024368
--------------------------------------------------------------------------------
Payroll Account              Bank of America                    5045202680
--------------------------------------------------------------------------------
Lockbox                      Bank of America                    DDA 010177024368
                                                                Lockbox ID 2880
--------------------------------------------------------------------------------

                                       43
<PAGE>

                                   SCHEDULE 3

                                 PLEDGED SHARES

<TABLE>
<CAPTION>
====================================================================================================================

                                                                                 Number of         Percentage of
                             Class of                                            Shares or      Outstanding Shares
        Issuer             Capital Stock    Certificate No(s).    Par Value      Interests         or Interests
====================================================================================================================
<S>                       <C>              <C>                   <C>            <C>              <C>
None.
--------------------------------------------------------------------------------------------------------------------

====================================================================================================================
</TABLE>

                                       44
<PAGE>

                                   SCHEDULE 4

                      LOCATIONS OF INVENTORY AND EQUIPMENT

Attached.

                                       45
<PAGE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
       LEVEL (3) COMMUNICATIONS
------------------------------------------------------------------------------------------------------------------------------------
  #    CODE   FACILITY NAME   ADDRESS                              CITY       ST/PR   ZIP/POST    CLLI CODE    LATITUDE  LONGITUDE
------------------------------------------------------------------------------------------------------------------------------------
<S>    <C>    <C>             <C>                            <C>               <C>    <C>         <C>           <C>      <C>
  1     AGU   Agua Caliente   MP 852 RR ROW                       Buckeye       AZ      85326      BCKYAZ02     33.2707  -112.9710

  2     AKN       Akron       106-110 S Arlington Street           Akron        OH      44306      AKRNOH81     41.0690   -81.4906

  3     ALB       Albany      314 North Pearl                     Albany        NY      12207      ALBYNYVP     42.6605   -73.7472

  4     ABN       Albion      14267 Hutchison Road                Albion        MI      49224      ALBNMIBL     42.2266   -84.6624

  5     AMR      Amarillo     1401 SE 3rd Street                 Amarillo       TX      79107      AMRLTX21     35.2085  -101.8193

  6     ACO       Ancho       US Hwy 54 & AO 14                  Carrizozo      NM      88301      CRZZNMAC     33.8825  -105.8217

  7     ARK    Arkadelphia    712 Post Oak Road                 Arkadelphia     AR      71923      ARKDARBY     34.2184   -93.0254

  8     ASH      Ashtola      11451 County Road LL               Clarendon      TX      79226      GDNGTX01     34.9893  -101.0047

  9     ATL      Atlanta      345 Courtland Street                Atlanta       GA      30303      ATLNGAHP     33.7590   -84.3834

  10    AUB       Auburn      199 Washington Street               Auburn        MA      01609      AUBNMAEJ     42.2046   -71.8124

  11    AUS       Austin      4207 Smith School Rd.               Austin        TX      78741      AUSUTXLL     30.2005   -97.7094

  12    BKF    Bakersfield    7731 Dimiller Dr.                 Bakersfield     CA      93307      BKFECAEP     35.3478  -118.9171

  13    BAL     Baltimore     300 W. Lexington Street,
                                3rd Floor                        Baltimore      MD      21201      BLTMMDSN     39.2917   -76.6197

  14    BNK      Bannock      10015 State Road 7               Boynton Beach    FL      33437      BYBHFLGH     26.5246   -80.2058

  15    BAR      Barstow      S W Hwy 247 & Boulder Road      Stoddard Valley   CA      92311                   34.7457  -117.0203

  16    BRT      Bartlett     857 North Dalton (Hwy 95)          Bartlett       TX      76511      BRTLTX01     30.8005   -97.4257

  17    BRG    Baton Rouge    9987 Burbank Drive                Baton Rouge     LA      70810      BTRGLA71     30.3569   -91.1198

  18    BEC    Beekmantown    475 Ashley Road                   Beekmantown     NY      12901      BKTWNYAF     44.7864   -73.4786

  19    BIR     Birmingham    6th Street and 5th Ave            Birmingham      AL      35233      BRHOALOH     33.4992   -86.8207

  20    BSC       Biscoe      E I-40 (S side)
                                & Biscoe Farm Road                Biscoe        AR      72017      BISCARAB     34.8452   -91.3984

  21    BLM    Bloomington    3206 Springtown                   Bloomington     IL      61704      BLTNIL06     40.4293   -89.0381

  22    BLN    Blountsville   S Hwy 231 where Carter
                                and Baily St.                  Blountsville     AL      35031      BUVLALAB     34.0971   -86.5786

  23    BOG       Bogart      E or behind 2154 Savage Road        Bogart        GA      30622      BGRTGABE     33.9800   -83.5342

  24    BOI       Boise       435 W McGregor Drive                 Boise        ID      97914      BOISID96     43.5668  -116.1919

  25    BOS       Boston      300 Bent Street                    Cambridge      MA      02142      CMBRMAOR     42.3675   -71.0869

  26    BDG       Bridge      2775 South 2400 East                Bridge        UT      83342      BRDGID01     42.1309  -113.3253

  27    BRI    Bridgewater    Rt. 67 New Milford Rd.
                                & Ebow Brook Rd.                Bridgewater     CT      06752      BRWRCTAA     41.5448   -73.3549

  28    BRU       Bruce       9900 Block Hwy 20 West               Bruce        FL      32455      BRUCFLAA     30.4724   -85.9690

  29    BUF      Buffalo      240 Scott Street                    Buffalo       NY      14204      BFLPNYBF     42.8765   -78.8670

  30    BUR       Burney      37576 State Highway 299E            Burney        CA      96013      BRNYCAAK     40.8947  -121.6496

  31    CPO       Campo       30994 County Rd C                    Campo        CO      81029      CAMPCO01     37.0171  -102.5354

  32    CRY       Carey       7301 Loop 328                      Childress      TX      79201      CARYTX01     34.4814  -100.3369

  33    CRT       Carter      334 Front Street South              Carter        WY      82933      FTBRWY01     41.4386  -110.4254

  34    CVW     Centerview    160 SW 701                        Centerview      MO      64019      CNVWMO01     38.7423   -93.8790

  35    CHM     Champlain     5801 County Road #20            West Hawkesbury   ON       --        WHWKONAA     45.5347   -74.6969

  36    CLT     Charlotte     4021 Rose Lake Road                Charlotte      NC      28217      CHRLNCRL     35.1773   -80.9251

  37    CHA   Chassahowitzka  SE Corner US 19
                                & Kelso Street                  Brooksville     FL      34614      BKVLFLEQ     28.6652   -82.5516

  38    CMT      Chemult      1/6 mi SE of 1st Street
                                on US 97                          Chemult       OR      97731      CHMLOR01     43.2135  -121.7822

  39    CHE     Chepachet     Route 44 Putnam Pike               Chepachet      RI      02814      CHPCRIAD     41.9051   -71.6390

  40    CHI      Chicago      111 N. Canal Street,
                                Suite 200                         Chicago       IL      60606      CHCGILGM     41.8836   -87.6394

  41    CHC      Chicopee     430 Sheridan Street               Springfield     MA      01020      SPFDMA49     42.1620   -72.5470

  42    CHF     Chiefland     6831 NW 115 Street                 Chiefland      FL      32626      CFLDFLAK     29.4969   -82.8853

                                                                 46
<PAGE>

  43    CIN     Cincinnati    400 Pike Street                   Cincinnati      OH      45202      CNCNOHBV     39.1018   -84.5028

  44    CLA    Clarksville    14549 Hwy 20 West                 Blountstown     FL      32424      CLVLFLAA     30.4256   -85.1474

  45    CEM      Cle Elum     4110 Lower Peoh Point Road         Cle Elum       WA      98922      CLELWAAO     47.1762  -120.8950

  46    CLE     Cleveland     4000 Chester Ave.                  Cleveland      OH      44103      CLEVOH97     41.5053   -81.6583

  47    COL     Columbiana    2151 Creek Road                   Columbiana      OH      44408      CLBNOHAP     40.8719   -80.6395

  48    CLS       Colusa      210 10th Street                     Colusa        CA      95932      COLSCA03     39.2157  -122.0152

  49    CRN      Corning      702 South 2nd Avenue                Corning       CA      96021      SRNTLAAB     39.9285  -122.1790

  50    CNA       Corona      13599 Temescal Canyon Rd.           Corona        CA      91719      CORNCAJW     33.7378  -117.4228

  51    COR     Corsicana     2930 Fish Tank Road                Corsicana      TX      75110      CRSCTX02     32.1126   -96.4886

  52    CYS   Coyote Springs  39 miles N of Garnet
                                Junction on Hwy US                  NA          NV      89008                   36.9411  -114.9710

  53    CST     Crestview     3500 Block Hwy 90 East             Crestview      FL      32539      CRVWFLAY     30.7531   -86.4981

  54    CPT    Crown Point    950 ft. W of State Rd 55
                                on W 129th                      Crown Point     IN      46307      CRPNINCS     41.3837   -87.3583

  55    CUB     Culbertson    Taylor Street & Hwy. 6            Culbertson      NE      69024      CLSNNE01     40.2339  -100.8431

  56    CMB     Cumberland    700 Kelly Drive                   Cumberland      MD      21502      CMLDMDDM     39.6417   -78.7803

  57    DAC       Dacus       5408 North FM 1486                Montgomery      TX      77356      MTGMTX01     30.4438   -95.7917

  58    DGN      Dahlgren     5701 US Naval Surface
                                Weapons Center                  King George     VA      22485      KGGRVABH     38.3517   -77.0592

  59    DAL       Dallas      3180 Irving Boulevard               Dallas        TX      75204      DLLATX37     32.8072   -96.8687

  60    DCT     Deem City     HWY 27 South                       South Bay      FL      33430      PLBHFL02     26.3373   -80.5418

  61    DEL       Deland      4500 SR 11                      DeLeon Springs    FL      32130      DLSPFLAE     29.1332   -81.2855

  62    DLT       Delta       450 South 640 West                   Delta        UT      84624      DELTUTBC     39.3456  -112.5903

  63    DEN       Denver      1850 Pearl Street                   Denver        CO      80203      DNVTCO56     39.7456  -104.9794

  64    DET      Detroit      19675 W. Ten Mile Road            Southfield      MI      48075      SFLDMIDN     42.4736   -83.2383

  65    DEX       Dexter      7822 Second Street                  Dexter        MI      48103      DXTRMIBO     42.2979   -83.7464

  66    DNW     Dinwiddie     13011 Boydton Plank Road           Dinwiddie      VA      23841      DNWDVAAH     37.0988   -77.5653

  67    DMS       Dumas       6400 FM 722                          Dumas        TX      79029      DUMSTX01     35.8089  -102.0320

  68    DRN       Duran       19259 US Hwy. 54                   Cedarvale      NM      87009      CDVANMAA     34.4961  -105.3649

  69    DRK       Durkee      29094 Old Hwy 30                    Durkee        OR      97905      DURKORAA     44.5891  -117.4725

  70    FAM  E. Farmers Road  931 SR 31                           Arcadia       FL      33982      PHGRFL02     27.0199   -81.7624

  71    EBN    East Bernard   11901 90A West                   East Bernard     TX      77435      EBRNTX02     29.5382   -96.0049

  72    EGW      Edgewood     810 Southeast Front Street         Edgewood       TX      75117      EDWDTX01     32.6949   -95.8681

  73    EDS       Edison      72294 Rd 429                       Arapahoe       NE      68922      ARPHNE01     40.3067   -99.8000

  74    ELC     El Centro     1220 Industry Way LOT 5            El Centro      CA      92243      ELCNCACN     32.7822  -115.5311

  75    ESC     Escondido     Valley Pkwy & BNSF RR              Escondido      CA      92025      ESCNCAHI     33.1172  -117.0902

  76    EUG       Eugene      90430 Prairie Rd                    Eugene        OR      97402      EUGNOR13     44.1179  -123.1686

  77    FAC    Factoryville   9N & County Route 22C             Crown Point     NY      12928      CRPNNYAA     43.9478   -73.4169

  78    FER       Fergus      500 ft. SE of Franklin Rd,
                                80 ft to                          Merced        CA      95340      MRCDCAIJ     37.3195  -120.5395

  79    FLO      Flovilla     ---                               Monticello      GA      31064                   33.3168   -83.8383

  80    FTW     Fort Worth    1501 Jones Street                  Ft. Worth      TX      76102      FTWQTXXT     32.7480   -97.3230

  81    FRK     Frankfort     County Rd 50 & County Rd 3000      Frankfort      IN      46041      FRFTINBR     40.3292   -86.4935

  82    FRE     Frederick     Ballenger Creek Road               Frederick      MD      21703                   39.4000   -77.4330

  83    FRN       Fresno      249 East Napa Ave.                  Fresno        CA      93706      FRSMCA15     36.7472  -119.8152

  84    FCK       Frick       18900 County Road E               Las Animas      CO      81054      LSANCO03     37.6962  -103.0623

  85    FLD     Fruitland     Route 1, Fruitland Road
                                & Hwy 101                         Sunset        TX      76270      SNSTTX01     33.4973   -97.7944

  86    FTV     Fruitvale     330 Old Naches Hwy                  Yakima        WA      98908      YAKMWA09     46.6435  -120.5982

  87    GRY        Gary       9th Ave. & Jefferson Street          Gary         IN      46402      GARYINII     41.5940   -87.3402

  88    GLK       Gluck       0.2 mi N of Hooper Road
                                & Martin Road                    Anderson       SC      29626      ARSNSCHS     34.4449   -82.6705

  89    GDG      Gooding      1721 South 2200 East                Gooding       ID      83330      GDNGID01     42.9510  -114.6534

                                                                 47
<PAGE>

  90    GOD       Goodno      10000 SR 80 West                  Moore Haven     FL      33471      MRHNFL01     26.7695   -81.2644

  91    GRD       Gordon      South of Gordon on
                                State Road 57                     Gordon        GA      31031                   32.8443   -83.2670

  92    GFT      Grafton      200 W. North Street                 Grafton       NE      68365      GFTNNE01     40.6315   -97.7159

  93    GRR    Green River    209 Purple Sage Road              Green River     WY      82935      GNRVWY12     41.5361  -109.3517

  94    GBO     Greensboro    5942- 5948 Lake Brandt Road       Greensboro      NC      27455      GNBPNCSY     36.1677   -79.8342

  95    GRE     Greensburg    Hwy 46 & Cobbs Fork River         Greensburg      IN      47240      GNBGINCE     39.3204   -85.3969

  96    GRW      Growler      MP 793 BNSF RR ROW                   Roll         AZ      85347      ROLLAZAA     32.8168  -113.7989

  97    GRN      Guernsey     166 Hwy. 353                         Hope         AR      71801      HOPEARBN     33.6466   -93.6819

  98    HGR      Haigler      Hwy. 27 & Hwy. 6                    Haigler       NE      69030      HGLRNE01     40.0173  -101.9184

  99    HAM      Hamilton     203 Wentworth Street South         Hamilton       ON       --        HMTNONNX     43.2446   -79.8514

 100    HNK      Hancock      7257 Millstone Road                 Hancock       MD      21750      HNCCMDAK     39.6742   -78.0838

 101    HAN      Hanford      11090 10 1/2 Avenue                 Hanford       CA      93230      HNFRCAEK     36.3121  -119.6461

 102    HRT      Hartford     155 Locust Street                  Hartford       CT      06114      HRFRCTBE     41.7465   -72.6645

 103    HTW     Heartwell     1632 41 Road                       Heartwell      NE      68945      HRWLNE01     40.5729   -98.7804

 104    HOP      Hopwood      133 Fawn Ridge Road                 Hopwood       PA      15401      UNTNPADG     39.8856   -79.7094

 105    HOU      Houston      12001 N. I-45                       Houston       TX      77060      HSTQTX02     29.9419   -95.4195

 106    HWE        Howe       US Hwy 75 2 miles S of
                                26 St turn east                   Auburn        NE      68305      AUBNNE02     40.3339   -95.8153

 107    HOW       Howell      18355 North Hwy 84                  Howell        UT      84336      HOWLUT01     41.8357  -112.4346

 108    HCO    Howells Cove   0.4 mi W HC Chruch
                                Collins Ferry Rd.                Talladega      AL      35160      TLDGALBV     33.4934   -86.1660

 109    HUN       Hunter      6280 FM 1102                     New Braunfels    TX      78130      NBRNTX02     29.7816   -98.0548

 110    HTV     Huntsville    2031 Blue Springs Road            Huntsville      AL      35801      HNVIALOC     34.7513   -86.6032

 111    HUT    Hutson Lake    5286 Hwy 26 West                  Hutson Lake     MS      39452      LCDLMSAI     30.8752   -88.7912

 112    IND    Indianapolis   1902 S East Street               Indianapolis     IN      46225      IPLWINRO     39.7411   -86.1507

 113    IOW        Iowa       21648 North Frontage Road            Iowa         LA      70647      IOWALAAE     30.2481   -92.9680

 114    IVT     Irvington     Hwy 79 2.5 miles N of
                                Irvington KY                     Irvington      KY      40146      IVTNKY01     37.9111   -86.2582

 115    ITS       Itasca      804 South Hill                      Itasca        TX      76055      ITSCTX01     32.1499   -97.1475

 116    JAX    Jacksonville   4814 Phillips Hwy                Jacksonville     FL      32207      JCVLFLAI     30.2877   -81.6336

 117    JLT       Joliet      20145 West Manhattan                Elwood        IL      60421      ELWDILAK     41.4294   -88.1016

 118    KLZ     Kalamazoo     816-820 & 830 E. Crosstown
                                Parkway                          Kalamazoo      MI      49001      KLMZMITS     42.2856   -85.5717

 119    KAC    Kansas City    1100 Walnut Street                Kansas City     MO      64106      KSCZMODR     39.1008   -94.5822

 120    KEA     Keany Pass    Off Hwy 15 near Roach                Roach        NV      92364                   35.6213  -115.3984

 121    KEN    Kenansville    390 South Canoe Ck Rd             Kenansville     FL      34739      KNVLFLAF     27.8766   -81.0302

 122    KMB      Kimball      W side of Ransom Road
                                & NSRR crossing                   Kimball       OH      44847      KMBLOHAA     41.3126   -82.6916

 123    LGR     La Grande     58902 Foothill Road                La Grande      OR      97850      LAGROR03     45.2684  -118.0472

 124    LPA      La Palma     5165 E. Storey Road               Casa Grande     AZ      85228      CSGRAZ20     32.8927  -111.5113

 125    LAF     Lafayette     228 Distribution Drive             Lafayette      LA      70507      LFYTLAQV     30.2597   -92.0282

 126    LNC     Lancaster     8491 Kingman Road                  Lancaster      KS      66041      LNCSKS01     39.5719   -95.2828

 127    LRM      Laramie      2271 PFE Road                       Laramie       WY      82072      LARMWY18     41.3313  -105.5948

 128    LVG     Las Vegas     1 Aerojet Way                      Las Vegas      NV      89030      NLVGNVBV     36.2372  -115.1246

 129    LEE        Lee        355 "A" West Road
                                (adjoining property)                Lee         MA      01262                   42.2977   -73.2483

 130    LNN      Lincoln      1001 North "O" Street               Lincoln       NE      68528      LNCLNE20     40.8129   -96.7371

 131    LTR    Little Rock    912 N Pine Street              North Little Rock  AR      72114      NLRKAR41     34.7624   -92.2598

 132    LOS  Live Oak Springs 36549 Old Hwy 80                  Pine Valley     CA      91962      BLVRCA01     32.7020  -116.3661

 133    LOF      Lofgreen     Dunbar Crossing #494
                                at Hwy 36                        Lofgreen       UT      84080      LFGRUTAA     40.0756  -112.3544

 134    LAX    Los Angeles    818 W 7th Street, 11th Floor      Los Angeles     CA      90017      LSANCA54     34.0490  -118.2595

 135    OSO      Los Osos     1101 Los Olivos Ave                Los Osos       CA      93402      LSOSCAAI     35.3132  -120.8311

 136    LOU     Louisville    848 South 8th Street              Louisville      KY      40203      LSVNKYJH     38.2430   -85.7660

                                                                 48
<PAGE>

 137    LUL       Luling      530 West Davis Street               Luling        TX      78648      LLNGTX01     29.6824   -97.6679

 138    LUT       Lutts       9150 Hwy 203                       Savannah       TN      38372      SVNHTNAM     35.1590   -88.0590

 139    MCY       Marcy       10151 SE 126 Blvd                 Okeechobee      FL      34974      OKCBFLBH     27.1520   -80.6918

 140    MTH    Marthasville   103 Peers Bluff Road             Marthasville     MO      63357      MTVLMO01     38.6356   -91.1157

 141    MED    Medicine Bow   W on US 30 5.2 mi past
                                SR 487 ILA on S                    Hanna        WY      82327      HANNWY01     41.8930  -106.2487

 142    MEM      Memphis      3993 Crowfarn Road                  Memphis       TN      38118      MMPKTNVZ     35.0290   -89.9310

 143    MIA       Miami       49 NW 5th Street                     Miami        FL      33128      MIATFLAD     25.7789   -80.1944

 144    MFD      Milford      1070 East 3100 North                Milford       UT      84751      MLFRUT01     38.4628  -112.9847

 145    MIL    Millersville   Brightview Drive                 Millersville     MD      21108      MIVLMDBN     39.1117   -76.6338

 146    MOB       Mobile      208 Telegraph Rd                   Prichard       AL      36610      PRCHAL02     30.7368   -88.0661

 147    MDP    Modoc Point    16001 Algoma Rd                  Klamath Falls    OR      97601      KLFLOR04     42.3674  -121.8067

 148    MNL       Monell      329 Patrick Draw Road CR 4-24      Wamsutter      WY      82336      WMSTWY01     41.5912  -108.4837

 149    MON      Montreal     4825 Francois Cusson                Lachine       QC     H8T1V3      LCHNPQEQ     45.4576   -73.7143

 150    MNC  Monument Canyon  BLM Land 16 mi NE of Hwy 93           NA          NV      89008      CLNTNVAE     37.7850  -114.6906

 151    MPK      Moorpark     5245 Kazuko Ct.                    Moorpark       CA      93021      MRPKCACA     34.2814  -118.8924

 152    MOR       Moreau      10364 Fort Edward Road              Moreau        NY      12828      MORUNYAG     43.2592   -73.5939

 153    MYN       Myndus      18785 Amapola Rd SE                 Deming        NM      88030      DMNGNM10     32.2581  -107.4554

 154    NAS        Nash       4320 Hwy. 185                     Brownsville     KY      42210      BWVLKY04     37.2945   -86.4352

 155    NVL     Nashville     2990 Sidco Drive                   Nashville      TN      37204      NSVMTN17     36.1025   -86.7559

 156    NOR    New Orleans    3220 Lausat Street                 Metairie       LA      70001      MTRELANE     29.9722   -90.1577

 157    NYC      New York     111 8th Ave.                       New York       NY      11011      NYCMNY83     40.7406   -74.0019

 158    NWR       Newark      165 Halsey Street                   Newark        NJ      07102      NWRKNJMD     40.7368   -74.1733

 159    NWL       Newell      400 yds. East of
                                Interstate Hwy. 94 & 95          Folkston       GA      31537                   30.9567   -81.9842

 160    NSM      Newsome      12108 Hwy 11 West                  Leesburg       TX      75451      LSBGTX01     32.9649   -95.1401

 161    NLS       Niles       3345 Route 12                        Niles        MI      49107      NILSMICL     41.8053   -86.3453

 162    NBD     North Bend    43411 SE North Bend Way           North Bend      WA      98045      NBNDWA03     47.4822  -121.7642

 163    OAK      Oakland      5000 Hollis Street                Emeryville      CA      94608      EMVLCA04     37.8360  -122.2873

 164    AKR      Oakridge     76228 Fish Hatchery Road           Oakridge       OR      97463                   43.7342  -122.4437

 165    OKS        Oaks       E of Mebane Oaks Rd
                                & SW State Rd 54                  Mebane        NC      27302      MEBNNACT     35.9551   -79.2590

 166    ODE       Odell       19389 East 2300 North Rd             Odell        IL      60460      ODLLIL01     40.9629   -88.5605

 167    OGD       Ogden       526 West 17th Street                 Ogden        UT      84404      OGDNUT48     41.2369  -111.9909

 168    OLG        Olga       1320 South Camino Sombreado          Bowie        AZ      85605      BOWIAZ01     32.2930  -109.3378

 169    OLP      Olympia      3350 Marvin Rd                      Olympia       WA      98503      OLYMWA09     47.0178  -122.7402

 170    OMA       Omaha       1514 Chandler Road                 Bellevue       NE      68147      BLLVNEBL     41.1870   -95.9364

 171    ONT      Ontario      SE 2nd Street & E Island Road       Ontario       OR      97194      ONTROR14     44.0048  -116.9659

 172    ORL      Orlando      380 Lake Destiny Drive              Orlando       FL      32810      ORLFFLEJ     28.6156   -81.3881

 173    ORO     Orogrande     2868 US Hwy 54                    Cloudcroft      NM      88317      CLDCNMAD     32.3649  -106.0948

 174    OST     Ostrander     4318 Pleasant Hill Rd                Kelso        WA      98626      KELSWA02     46.2163  -122.8932

 175    OTT       Ottawa      Terminal Avenue                     Ottawa        ON       --        OTWBONFB     45.4155   -75.6481

 176    PCE     Palo Cedro    22020 Palo Way                    Palo Cedro      CA      96073      PLCDCA01     40.5565  -122.2380

 177    PEA    Pearlington    6000 Jennes Road                  Pearlington     MS      39520      PLTNMSAD     30.2531   -89.5869

 178    PCA     Pensacola     9741 N. Davis Hwy                  Pensacola      FL      32514      PNSCFL62     30.5360   -87.2044

 179    PEY       Perry       3400 Carlton Cemetery Road           Perry        FL      32347      PRRYFLAG     30.0614   -83.5799

 180    PRY     Perryville    Goosemar Road                     Perryville      MD      21911      NRTEMDBC     39.6262   -75.9850

 181    PER       Perth       156 Christie Lake Road               Perth        ON     K7H 3C6     PRTHONBC     44.9048   -76.2733

 182    PET    Peterborough   134 Jameson Drive                Peterborough     ON       --        PTBOONET     44.2655   -78.3557

                                                                 49
<PAGE>

 183    PHI    Philadelphia   401 N. Broad Street              Philadelphia     PA      19107      PHLAPAFG     39.9594   -75.1611

 184    PHX      Phoenix      811 S. 16th Street                  Phoenix       AZ      85034      PHNDAZ91     33.4405  -112.0475

 185    PIN     Pinehurst     6008 Tulane Road                    Orange        TX      77630      NWOSLATZ     30.0945   -93.8067

 186    PNN       Pinon       325 Pace Road                       Pueblo        CO      81008      PUBLCO50     38.4332  -104.6015

 187    PIT     Pittsburgh    143 South 25th Street             Pittsburgh      PA      15203      PITEPADT     40.4255   -79.9705

 188    PLN     Plainview     11417 Shipman Rd                   Plainview      IL      62685      PLVWIL01     39.1633   -89.9892

 189    PLT      Platner      40395 CR KK5                         Otis         CO      80743      OTISCO01     40.1544  -103.0689

 190    PTT    Platteville    12616 Weld County Rd #28          Fort Lupton     CO      80621      PTVLCO03     40.1877  -104.8180

 191    POP    Poplarville    142 Barlow Lane                   Poplarville     MS      39470      PPFLMSAM     30.8271   -89.5210

 192    POR      Portland     1335 NW Northrop Street            Portland       OR      97209      PTLGORIA     45.5315  -122.6845

 193    PRN     Princeton     4260 US HWY 1                      Monmouth       NJ      08852      MNJTNJAB     40.3756   -74.5837

 194    PRS      Prosser      89303 W Sellards Rd                 Prosser       WA      99350      PRSRWA02     46.1260  -119.6812

 195    RAL      Raleigh      5301 Departure Drive                Raleigh       NC      27616      RLGHNCJV     35.8562   -78.5946

 196    RWL      Rawlins      W on I-80 exit Hadsell
                                and go S. 0.8 mi                  Rawlins       WY      82301      RWLNWY10     41.7767  -107.3720

 197    RAY      Raywood      3008 US Hwy. 90 East                Liberty       TX      77575      LBRTTXBT     30.0439   -94.6844

 198    REU    Reubensville   500 ft S of intsct of
                                US Hwy 31-W &                    Portland       TN      37148      PTLDTNAS     36.6008   -86.5851

 199    REV      Reverse      7505 South Hwy 30                   Reverse       ID      83647      RVRSID01     43.0183  -115.5963

 200    REX      Rexville     US Hwy 421 2.0 miles S of
                                Rexville                          Holton        IN      47023      HLTNIN01     38.9228   -85.3624

 201    RCH      Richmond     8751 Park Central Drive            Richmond       VA      23227      RCMEVA47     37.6472   -77.4400

 202    RTH       Rieth       7500 NW A Avenue                   Pendelton      OR      97801      PNTNOR02     45.6886  -118.8709

 203    ROA       Roach       #58 County Road 1925                Atlanta       TX      75551      ATLNTXBC     33.0604   -94.2732

 204    ROB      Robbins      3323 FM 39 South                    Marquez       TX      77865      MRQZTX01     31.2094   -96.1299

 205    ROC      Rockdale     9001 New Lawrenceburg Hwy.       Mt. Pleasant     TN      38474      MNPLTN01     35.4479   -87.2701

 206    RKY     Rocky Ford    18791 Highway 202                 Rocky Ford      CO      81067      RCFRCO03     38.0570  -103.7332

 207    ROE       Romero      1 mile N CR 11 & Hwy. 54            Hartley       TX      79044      HRTLTX01     35.7704  -102.8690

 208    RUP       Rupert      529 North 300 West                  Rupert        ID      83350      RPRTID01     42.7050  -113.7249

 209    SAC     Sacramento    1075 Triangle Court             West Sacramento   CA      95605      WSCRCAHW     38.5872  -121.5294

 210    SLM       Salem       2001 16th Street NE                  Salem        OR      97301      SALMORSW     44.9541  -123.0150

 211    SAL     Salisbury     2708 Mooreville Road               Salisbury      NC      28147      SLBRNCGD     35.6662   -80.5282

 212    SLC   Salt Lake City  572 S DeLong Street             Salt Lake City    UT      84104      SLKDUTYI     40.7565  -111.9553

 213    SAT    San Antonio    5130 Service Center Blvd.         San Antonio     TX      78218      SNAQTXKY     29.4760   -98.3900

 214    SAO      San Ardo     Cattlemen Rd @ Short St.           San Ardo       CA      93450      SNARCAAH     36.0232  -120.9037

 215    SBO   San Bernardino  Industrial Parkway
                                @Cable Creek                  San Bernardino    CA      92407      SNBRCATC     34.1831  -117.3539

 216    SDG     San Diego     8929 Aero Drive                   Kearny Mesa     CA      92123      SNDACAGL     32.8099  -117.1367

 217    SFO   San Francisco   185 Berry Street                 San Francisco    CA      94107      SNFCCASY     37.7753  -122.3946

 218    SJO      San Jose     1380 Kifer Road                    Sunnyvale      CA      94086      SNVACAID     37.3738  -121.9875

 219    SLO  San Luis Obispo  3550 Broad Street               San Luis Obispo   CA      93401      SNLOCAKR     35.2567  -120.6444

 220    SAM     San Martin    S. of San Mattin, North
                                of Depot St                     San Martin      CA      95046      SNMACAAS     37.0819  -121.6082

 221    SAD      Sandrini     492 ft. S. of Graces
                                along RR Court                    Angiola       CA      93215      ANGLCAAA     35.7600  -119.3444

 222    SBA   Santa Barbara   122 Helena Ave.                  Santa Barbara    CA      93101      SNBBCA17     34.4143  -119.6900

 223    SRA     Santa Rosa    I-40 & Hwy 84- 4 mi. NE           Santa Rosa      NM      88435      SNRSNM02     34.9735  -104.5845

 224    SNT    Santa Teresa   2701 Airport Road-
                                LOT 9 Harrier Drive            Santa Teresa     NM      88008      SNTSNM02     31.8671  -106.6972

 225    SAY      Saybrook     450 North Ridge Road               Saybrook       OH      44004      SYBKOH01     41.8343   -80.8499

 226    SEA      Seattle      1000 Denny Way                      Seattle       WA      98109      STTNWAHO     47.6189  -122.3369

 227    SEP       Separ       4240 Separ Road                   Silver City     NM      88061      HRLYNM02     32.2030  -108.4214

 228    SHB    Shelbyville    542 Shelbyville Mills Road        Shelbyville     TN      37160      SHVLTNAZ     35.4729   -86.4920

                                                                 50
<PAGE>

 229    SRD      Sheridan     2529 Route 39                     Forestville     NY      14062      FSVLNY01     42.4681   -79.2358

 230    SBY       Sibyl       1220 North Sibyl Road              St. David      AZ      85630      STDVAZ01     31.9480  -110.1741

 231    SLA    Silver Lake    North of Hwy 127
                                & Silver Lake                      Baker        CA      92309                   35.3343  -116.2219

 232    SOL      Soledad      Froma San Lucia N. of
                                Short & RR                        Soledad       CA      93960      SLDDCAAP     36.4234  -121.3268

 233    SRT      Sorrento     7530 John Le Blanc Blvd            Sorrento       La      70774      SRNTLAAC     30.1792   -90.8721

 234    SPA    Spartanburg    196 Goucher School Road             Gaffney       SC      29340      GFNYSCDH     34.9838   -81.7325

 235    SPG    Springfield    101 Marchelle Ave                 Springfield     IL      62702      SPFDILYZ     39.8213   -89.7095

 236    SPC       Spruce      481 County Line Rd                Palmer Lake     CO      80133      PLLKCO01     39.1249  -104.9077

 237    STU   St. Augustine   4800 S Hwy 1                    Saint Augustine   FL      32086      STAGFLGL     29.7745   -81.3159

 238    STL     St. Louis     1015 Locust Street, 3rd Floor     Saint Louis     MO      63101      STLSMOPL     38.6303   -90.1944

 239    STM      Stamford     21 Harbor View Avenue              Stamford       CT      06902      SMFRCTPU     41.0480   -73.5300

 240    SLI     Stateline     275 State HWY 223                  Cheyenne       WY      82007      CHYNWY51     41.0391  -104.8848

 241    SCK      Stockton     2079 East Miner Ave.               Stockton       CA      95205      SKTOCACM     37.9605  -121.2642

 242    STR     Stratford     501 West Texas Avenue              Stratford      TX      79084      SRFRTX01     36.3277  -102.0797

 243    SUI    Suisun City    106 Railroad Avenue               Suisun City     CA      94585      FRSSCA01     38.2498  -122.0306

 244    SUM       Summit      S of Williamson, Tehachapi
                                & Eumatilla                      Monolith       CA      93561      THCHCABM     35.1218  -118.3708

 245    SUR      Surrency     N of Yellow Jacket Rd
                                & Dalton Rd & Hwy                 Baxley        GA      31513                   31.6826   -82.2696

 246    SRC      Syracuse     11914 Hwy 50                        Tipton        MO      65081      TPTNMO01     38.6686   -92.8437

 247    TAL    Tallahassee    619 Mabry Street                  Tallahassee     FL      32304      TLHSFLPW     30.4384   -84.3283

 248    TLP     Tallapoosa    East of 388 King Street             Breman        GA      30182      BRMNGAAR     33.6952   -85.1840

 249    TMP       Tampa       7909 Woodland Center Blvd.           Tampa        FL      33614      TAMRFLWS     28.0231   -82.5197

 250    TRT     Tarrytown     Tract #2 West of Tarrytown         Soperton       GA      30457                   32.3496   -82.5810

 251    TBB      Tebbetts     4873 State Road AA                  Tebetts       MO      65080      TBTSMO01     38.6067   -91.9904

 252    TIO      Tionesta     4187C County Road 97               Tulelake       CA      96134                   41.6445  -121.3256

 253    TLB      Tolbert      2719 CR 93 South                    Vernon        TX      76384      VERNTX02     34.2189   -99.3968

 254    TOL       Toledo      6285 American Road                  Toledo        OH      43612      TOLEOH11     41.7304   -83.5202

 255    TOR      Toronto      8 Garamond Court                    Toronto       ON       --        TORVONRF     43.7273   -79.3347

 256    TCS       Tucson      450 E. Toole Avenue                 Tucson        AZ      85701      TCSOAZ01     32.2164  -110.9621

 257    TCR     Tucumcari     6665 Quay Road                     Tucumcari      NM      88401      TCMCNMAN     35.2248  -103.6146

 258    TRA      Tularosa     6470 US Hwy 54                     Tularosa       NM      88352      TLRSNM01     33.1494  -106.0480

 259    TUS       Tustin      14452 Franklin Avenue               Tustin        CA      92614                   33.7182  -117.8050

 260    TWE       Tweed       1278 River Street West               Tweed        ON       --        TWEDONAG     44.4722   -77.3134

 261    VTA      Ventura      1667 Walter Street                  Ventura       CA      93003      VNTRCAGI     34.2583  -119.2403

 262    WCO        Waco       3311 Clay Street                 Beverly Hills    TX      76711      WACOTX64     31.5297   -97.1549

 263    WAH      Wahsatch     10 miles West on I-80.
                                exit #193 turn                   Coalville      UT      84017      CLVLUT02     41.1892  -111.1307

 264    WAL       Walnut      150 County Road 129                 Walnut        MS      38683      WLNTMSAB     34.9530   -88.8350

 265    WAS        Wash       Avenue "T" and 96th Street         Palmdale       CA      93543      PLDLCAEW     34.5445  -117.9603

 266    WDC   Washington, DC  1755/1757 Old Meadow Road           McLean        VA      22102      MCLNVA23     38.9206   -77.2114

 267    WAT     Waterbury     3450 CR 675                       Myakka City     FL      34251      BRTNFL17     27.4673   -82.3034

 268    WEI       Weimar      1028 Hwy 90                         Weimar        TX      78962      WEMRTX02     29.6979   -96.8061

 269    WLD      Weld Co.     13228 WCR 95.5                      Wiggins       CO      80654      WGNSCO01     40.1921  -104.1577

 270    WES    Wesleyville    Walbridge Rd at Hwy 20
                                & Hwy 955                       Wesleyville     PA      16510                   42.1418   -80.0210

 271    WHI     Whitehills    W Laurel @ "A" St.                  Lompoc        CA      93436      LMPCCADL     34.6433  -120.4493

 272    WIF   Wichita Falls   1908 Waurika Street              Wichita Falls    TX      76303      WCFLTX10     33.8949   -98.4472

 273    WDN      Widener      6869 HWY 70 East                    Widener       AR      72394      WDNRARAA     35.0520   -90.6960

 274    WIL     Wilmington    1603 Jessup St.                   Wilmington      DE      19802      WLMGDEOJ     39.7494   -75.5383

 275    WSE        Wise       US Hwy. 1                           Norlina       NC      27563      NRLNNC01     36.5010   -78.1765

 276    WOL      Wolcott      Division Rd & County
                                Rd 1000 W                         Wolcott       IN      47995      WLCTINAC     40.7517   -87.0625

 277    YCR   Yale Crossing   8471 North 5600 West                 Beryl        UT      84756      BRYLUT01     37.8625  -113.7848

 278    YUM        Yuma       1218, 1276 East 21st St.             Yuma         AZ      85365      YUMAAZ45     32.6902  -114.6074
</TABLE>

                                       51
<PAGE>

11 N. Pearl St
Albany, NY  12207

3340 Peachtree Rd NE
Suite 200
Atlanta, GA  30326

1190 Allene Ave SW
Atlanta, GA 30310

621 Pleasant Valley North
Austin, TX  78702

900 Fleet Street
109 Brookline Ave
Boston, MA 02215

99 Summer St., 12 Fl
Boston, MA  02110

Main Place Tower
350 Main St., 19th Fl.
Buffalo, NY 14202

Avnet in Arizona
7300 W Detroit St
Chandler, AZ 85226

113 North Myers, 3rd Floor
Charlotte, NC  28202

10 S. Lasalle St., Suite 2416
24th Floor Comm Rm
Chicago, IL  60603

600 S. Federal, Suite 400
Chicago, IL  60607

4200 West 40th Street
Chicago, IL 60632

                                       52
<PAGE>

105 E. 4th Street, Suite 150C
Cincinnati, OH  45202

1350 Euclid Ave, Suite 150
Cleveland, OH  44115

266 North 5th St.
Columbus, OH  43215

760 Office Parkway
Creve Coeur, MO  63141

13601 Preston Rd
Dallas, TX  75240

600 N. Pearl St., Suite 800
Dallas, TX 75201

4518 So. Miami Blvd.
Durham, NC 27703

6050 Race Rd
Elkridge, MD 21227

8765 East Orchard Rd, Suite 708
Englewood, CO 80111

1400 East Presido
Ft. Worth, TX 76102

301 S. Elm St, Suite 650
Greensboro, NC 27401

587 McDonnell Blvd.
Hazelwood, MO  63042

12851 Worldgate Dr.
Herndon, VA  20170

1301 Fannin St, Suite 1075
Houston, TX  77002

                                       53
<PAGE>

1301 Fannin, 12 Fl.
Houston, TX 77002

6535-43 Hillsdale Ct.
Indianapolis, IN  46250

17770 Cartwright Rd.
Irvine, CA 92614

6620 S Southpoint, Dr Suite 100
Jacksonville, FL 32216

324 E. 11th  Colo Room
Kansas City,  MO  64106

7185 Pollock Dr. Bldg 19
Las Vegas, NV 89119

3080 Ogden Ave.
Lisle, IL  60532

515 S. Flower, Suite 1000
Los Angeles, CA  90071

700 S Flower St., 3rd Floor
Los Angeles, CA 90017

332 West Broadway, Suite 225
Louisville, KY  40202

1 NE 1st Street, 5th Floor
Miami, FL  33132

200 S Biscayne Blvd, 9th Fl.
Miami, FL  33131

511 Eleventh Avenue
Suite 420 4th Floor
Minneapolis, MN  55415

                                       54
<PAGE>

1 American Center, Ste 1300
3100 West End Ave.
Nashville, TN  37203

Sprint Kansas City
500 Sumner Way
New Century, KS  66031

1 State Street Plaza
22nd Fl Data Comm. Rm
New York, NY 10004

67 Broad St.
New York, NY 10004

60 Hudson 13th Fl.
New York, NY 10013

165 Halsey St. 5th Floor
Newark, NJ 07102

1724 Lovitt Ave
Norfolk, VA  23504

125 St. Paul Street
Norfolk, VA 23510

Bank One Building
100 N. Broadway, Suite 2200
Oklahoma City, OK  73102

100 S. Lucerne Circle West
Suite 202
Orlando, FL 32801

2405 Bird St
Oroville, CA 95965

                                       55
<PAGE>

2130 Arch St.
3rd Floor
Philadelphia, PA  19103

120 E. Van Buren St.
2nd floor West
Phoenix, AZ  85004

2500 Allegheny Center
Office Concourse, 2nd Floor
Pittsburgh, PA 15212

10340 SW Nimbus
Portland OR  97208

3 Regency Plaza
Network Op Center
Providence, RI 02903

282 South Sycamore
Rialto, CA  92376

701 E Cary St
Richmond, VA 23219

1411 I St.
Sacramento, CA 95814

2055 Westport Center Drive
St. Louis, MO 63141

900 Walnut
St. Louis, MO 63102

717 Office Parkway
St. Louis, MO  63141

847 Earl St.
St. Paul, MN  55106

118 S 1000 West
Salt Lake City, UT 84104

                                       56
<PAGE>

323 Broadway St., #200
San Antonio, TX  78205

San Diego Tech Center
9645 Scranton
San Diego, CA  92121

444 Market St., 13th Floor
1 Front St.
San Francisco, CA  94111

55 S. Market
San Jose, CA 95113

3450 Garrett Dr.
Santa Clara, CA 95054

Westin Bldg.
2001 6TH Ave. Suite 2700
Seattle, WA 98121

4000 Town Center 1st Floor
Southfield, MI  48075

26 Fahey St.,
Stamford, CT 06907

                                       57
<PAGE>

655 N Franklin, 10th Fl.
Tampa, FL 33602

705 South Elgin St., 1st Floor
Tulsa, OK  74120

1411 K Street NW
Suite 1402, 14th Fl.
Washington, DC  20036

1331 F St. NW, 2nd Floor
Washington, DC 20004

                                       58
<PAGE>

                                   SCHEDULE 5

                              TRADE AND OTHER NAMES

Diamond.Net ISP, Inc.

SAVVIS Communications Enterprises L.L.C.

Interconnected Associates Inc.

                                       59
<PAGE>

                                   SCHEDULE 6

                            JURISDICTIONS FOR FILING
                           UCC-1 FINANCING STATEMENTS

                                    BORROWER

                                                                   UCC-1
                                                                  Financing
                                                UCC-1             Statement
                                              Financing         Transmitting
               Jurisdiction                   Statement            Utility

1.       Alabama Secretary of State               X                   X

2.       Arizona Secretary of State               X                   X

3.       Arkansas Secretary of State              X                   X

4.       Clark County, Arkansas                   X                  n/a

5.       St. Francis County, Arkansas             X                  n/a

6.       Hempstead County, Arkansas               X                  n/a

7.       Prairie County, Arkansas                 X                  n/a

8.       Pulaski County, Arkansas                 X                  n/a

9.       Colorado Secretary of State              X                   X

10.      Connecticut Secretary of State           X                   X

11.      Delaware Secretary of State              X                   X

12.      Florida Department of State              X                   X

13.      Idaho Secretary of State                 X                   X

14.      Clinton County, Indiana                  X                  n/a

15.      Decatur County, Indiana                  X                  n/a

16.      Lake County, Indiana                     X                  n/a

17.      White County, Indiana                    X                  n/a

18.      Ripley County, Indiana                   X                  n/a

19.      Kansas Secretary of State                X                   X

20.      Kentucky Secretary of State              X                   X

21.      Jefferson County, Kentucky               X                  n/a

22.      Ascension Parish, Louisiana              X                   X

23.      Calcasieu Parish, Louisiana              X                   X

24.      E. Baton Rouge Parish, Louisiana         X                   X

25.      Jefferson Parish, Louisiana              X                   X

26.      Lafayette Parish, Louisiana              X                   X

27.      Auburn Town Clerk, Massachusetts         X                  n/a

                                       60
<PAGE>

                                                                   UCC-1
                                                                  Financing
                                                UCC-1             Statement
                                              Financing         Transmitting
               Jurisdiction                   Statement            Utility

28.      Cambridge Town Clerk, Massachusetts      X                  n/a

29.      Lee Town Clerk, Massachusetts            X                  n/a

30.      Springfield Town Clerk, Massachusetts    X                  n/a

31.      Mississippi Secretary of State           X                   X

32.      George County, Mississippi               X                  n/a

33.      Hancock County, Mississippi              X                  n/a

34.      Pearl River County, Mississippi          X                  n/a

35.      Tippah County, Mississippi               X                  n/a

36.      Callaway County, Missouri                X                  n/a

37.      Jackson County, Missouri                 X                  n/a

38.      Johnson County, Missouri                 X                  n/a

39.      Moniteau County, Missouri                X                  n/a

40.      St. Louis County, Missouri               X                  n/a

41.      Warren County, Missouri                  X                  n/a

42.      Nebraska Secretary of State              X                   X

43.      Nevada Secretary of State                X                   X

44.      New Jersey Secretary of State            X                   X

45.      New Mexico, Secretary of State           X                   X

46.      Dona Ana County, New Mexico             n/a                  X
         (County Notice)

47.      Grant County, New Mexico                n/a                  X
         (County Notice)

48.      Guadalupe County, New Mexico            n/a                  X
         (County Notice)

49.      Lincoln County, New Mexico              n/a                  X
         (County Notice)

50.      Luna County, New Mexico                 n/a                  X
         (County Notice)

51.      Otero County, New Mexico                n/a                  X
         (County Notice)

52.      Quay County, New Mexico                 n/a                  X
         (County Notice)

                                       61
<PAGE>

                                                                   UCC-1
                                                                  Financing
                                                UCC-1             Statement
                                              Financing         Transmitting
               Jurisdiction                   Statement            Utility

53.      Torrance County, New Mexico             N/a                  X
         (County Notice)

54.      Albany County, New York                  X                  n/a

55.      Chautauqua County, New York              X                  n/a

56.      Clinton County, New York                 X                  n/a

57.      Erie County, New York                    X                  n/a

58.      Essex County, New York                   X                  n/a

59.      Saratoga County, New York                X                  n/a

60.      North Carolina Secretary of State        X                   X

61.      Almance County, North Carolina           X                   X

62.      Durham County, North Carolina            X                   X

63.      Guilford County, North Carolina          X                   X

64.      Mecklenburg County, North Carolina       X                   X

65.      Rowan County, North Carolina             X                   X

66.      Wake County, North Carolina              X                   X

67.      Warren County, North Carolina            X                   X

68.      Ashtabula County, Ohio                   X                   X

69.      Erie County, Ohio                        X                   X

70.      Lucas County, Ohio                       X                   X

71.      Columbiana County, Ohio                  X                   X

72.      Summit County, Ohio                      X                   X

73.      Oklahoma Secretary of State             n/a                  X

74.      Oklahoma County, Oklahoma                X                  N/a

75.      Erie County Prothonotary, Pennsylvania   X                  N/a

76.      Fayette County Prothonotary,             X                  n/a
         Pennsylvania

77.      Rhode Island Secretary of State          X                   X

78.      South Carolina Secretary of State        X                   X

79.      Anderson County, South Carolina         n/a                  X

80.      Cherokee County, South Carolina         N/a                  X

81.      Tennessee Secretary of State             X                   X

82.      Utah Division of Corporation and         X                   X
         Commercial Code

                                       62
<PAGE>

                                                                   UCC-1
                                                                  Financing
                                                UCC-1             Statement
                                              Financing         Transmitting
               Jurisdiction                   Statement            Utility

83.      Dinwiddle County, Virginia               X                   X

84.      Independent City of Norfolk,             X                   X

85.      Independent City of Richmond, Virginia   X                   X

86.      King George County, Virginia             X                   X

87.      Wyoming Secretary of State               X                   X

88.      Albany County, Wyoming                   X                  n/a

89.      Carbon County, Wyoming                   X                  n/a

90.      Laramie County, Wyoming                  X                  n/a

91.      Sweetwater County, Wyoming               X                  n/a

92.      Unita County, Wyoming                    X                  n/a

                      UCC-3 FINANCING STATEMENT AMENDMENTS

                                                Financing         Transmitting
                                                Statement           Utility
           Jurisdiction                         Amendment          Amendment

1.  California Secretary of State                   X                 X

2.  District of Columbia Recorder of Deeds          X                 X

3.  Fulton County, Georgia                          X                 X

4.  Illinois Secretary of State                     X                 X

5.  Indiana Secretary of State                      X                 X

6.  Marion County, Indiana                          X                n/a

7.  Maryland State Department of Assessments and    X                 X
    Taxation

8.  Massachusetts Secretary of State                X                 X

9.  Boston Town Clerk, Massachusetts                X                n/a

10. Michigan Secretary of State                     X                 X

11. Minnesota Secretary of State                    X                 X

12. Missouri Secretary of State                     X                 X

13. St. Louis City, Missouri                        X                n/a

14. New York Secretary of State                     X                 X

                                       63
<PAGE>

                                                Financing         Transmitting
                                                Statement           Utility
           Jurisdiction                         Amendment          Amendment

15. New York County, New York                       X                n/a

16. Ohio Secretary of State                         X                 X

17. Cuyahoga County, Ohio                           X                 X

18. Franklin County, Ohio                           X                 X

19. Hamilton County, Ohio                           X                 X

20. Oregon Secretary of State                       X                 X

21. Pennsylvania Secretary of State                 X                 X

22. Allegheny County Prothonotary, Pennsylvania     X                n/a

23. Philadelphia County Prothonotary, Pennsylvania  X                n/a

24. Texas Secretary of State                        X                 X

25. Virginia State Corporation                      X                 X

26. Fairfax County, Virginia                        X                 X

27. Washington Department of                        X                 X
    Licensing, UCC Division

                                       64
<PAGE>

                                    EXHIBIT A

                          COPYRIGHT SECURITY AGREEMENT

                                       65
<PAGE>

                          COPYRIGHT SECURITY AGREEMENT
                          ----------------------------
                       (Savvis Communications Corporation)

         THIS  COPYRIGHT  SECURITY  AGREEMENT  ("Agreement")  is between  Savvis
Communications  Corporation,  a  Missouri  corporation  ("Debtor"),  and  Nortel
Networks Inc., a Delaware corporation ("Secured Party"),  acting in its capacity
as  Administrative  Agent pursuant to that certain  Amended and Restated  Credit
Agreement  dated as of September 5, 2000 (as the same may be amended,  modified,
supplemented,  renewed,  extended  or  restated  from time to time,  the "Credit
Agreement") among Debtor, Holdings,  Secured Party and each of the Lenders party
thereto.

                                R E C I T A L S:
                                ----------------

         A.       Debtor  and  Secured  Party  have  entered  into that  certain
Amended and  Restated  Pledge and Security  Agreement,  dated as of September 5,
2000 (as the same may be amended, modified,  supplemented,  renewed, extended or
restated from time to time, the "Security  Agreement";  all terms defined in the
Security Agreement, wherever used herein, shall have the same meanings herein as
are prescribed by the Security Agreement).

         B.       Pursuant to the terms of the  Security  Agreement,  Debtor has
granted to Secured Party a lien and security interest in all General Intangibles
of Debtor  including,  without  limitation,  all of Debtor's right,  title,  and
interest in, to and under all now owned and hereafter  acquired  Copyrights  and
Copyright Licenses, and all products and Proceeds thereof, to secure the payment
of the Obligations (as defined in the Credit Agreement).

         NOW, THEREFORE,  for good and valuable  consideration,  the receipt and
sufficiency  of which are hereby  acknowledged,  Debtor hereby grants to Secured
Party a lien and continuing  security interest in all of Debtor's right,  title,
and  interest in, to, and under the  following  (all of the  following  items or
types of  Property  being  herein  collectively  referred  to as the  "Copyright
Collateral"), whether presently existing or hereafter created or acquired:

                  (1)  each   Copyright,   each   registration  of  a  Copyright
         ("Copyright Registration"),  and each application for registration of a
         Copyright  ("Copyright  Application"),  including,  without limitation,
         each  Copyright,  Copyright  Registration,  and  Copyright  Application
         referred to in Schedule 1 annexed hereto;

                  (2) each Copyright  License,  including,  without  limitation,
         each Copyright License referred to in Schedule 1 annexed hereto; and

                  (3) all  products and  Proceeds of the  foregoing,  including,
         without limitation, any claim by Debtor against third parties for past,
         present, or future  infringement or breach of any Copyright,  Copyright
         Registration,  Copyright Application,  or Copyright License, including,
         without limitation, any Copyright, Copyright Registration, or Copyright
         License  listed  in  Schedule  1  annexed  hereto,  and  any  Copyright
         Registration issued pursuant to a Copyright  Application referred to in
         Schedule 1 annexed hereto.

                                       66
<PAGE>

The lien and  security  interest  contained  in this  Agreement  is  granted  in
conjunction  with the liens and  security  interests  granted to  Secured  Party
pursuant to the Security Agreement.

         Debtor hereby  acknowledges and affirms that the rights and remedies of
Secured Party with respect to the liens and security  interests in the Copyright
Collateral  made and  granted  hereby are more  fully set forth in the  Security
Agreement,  the terms and  provisions  of which are  incorporated  by  reference
herein as if fully set forth herein.

         IN  WITNESS  WHEREOF,  Debtor  has  caused  this  Agreement  to be duly
executed by its duly authorized officer as of the ____ day of _________, ____.

                                 DEBTOR:
                                 ------

                                 SAVVIS COMMUNICATIONS CORPORATION,
                                 a Missouri corporation

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

                                 SECURED PARTY:
                                 -------------

                                 NORTEL NETWORKS INC.,
                                 as Administrative Agent

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

                                       67
<PAGE>

                                 ACKNOWLEDGMENT

STATE OF ______________    )
                                            )
COUNTY OF _____________    )

         This  instrument was  acknowledged  before me this _____ day of ______,
____ by ______________,  as __________of Savvis  Communications  Corporation,  a
Missouri corporation, on behalf of such corporation.

                                           -------------------------------------
         {Seal}                            Notary Public in and for the State of

My commission expires:_____________________

STATE OF ______________    )
                                            )
COUNTY OF _____________    )

         This instrument was acknowledged before me this _____ day of _________,
____, by  _______________________,  as  _____________________ of Nortel Networks
Inc., a Delaware corporation, on behalf of such corporation.

                                           -------------------------------------
         {Seal}                            Notary Public in and for the State of

My commission expires:_____________________

                                       68
<PAGE>

                                   Schedule 1
                                       to
                          Copyright Security Agreement

                                   COPYRIGHTS

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------------
OWNER OF RECORD  COUNTRY OF           COPYRIGHT         APPLICATION OR        REGISTRATION OR     EXPIRATION DATE   TITLE
                 REGISTRATION                           REGISTRATION NO.      FILING DATE
--------------------------------------------------------------------------------------------------------------------------------
<S>              <C>                <C>                <C>                   <C>                  <C>               <C>

--------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                               COPYRIGHT LICENSES

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------
NAME OF AGREEMENT                            COPYRIGHT                             DATE OF AGREEMENT
----------------------------------------------------------------------------------------------------------
<S>                                        <C>                                    <C>

----------------------------------------------------------------------------------------------------------
</TABLE>

                                       69
<PAGE>

                                    EXHIBIT B

                            PATENT SECURITY AGREEMENT

                                       70
<PAGE>

                            PATENT SECURITY AGREEMENT
                            -------------------------
                       (Savvis Communications Corporation)

         THIS  PATENT  SECURITY   AGREEMENT   ("Agreement")  is  between  Savvis
Communications  Corporation,  a  Missouri  corporation  ("Debtor"),  and  Nortel
Networks Inc., a Delaware corporation ("Secured Party"),  acting in its capacity
as  Administrative  Agent pursuant to that certain  Amended and Restated  Credit
Agreement  dated as of September 5, 2000 (as the same may be amended,  modified,
supplemented,  renewed,  extended  or  restated  from time to time,  the "Credit
Agreement") among Debtor, Holdings,  Secured Party and each of the Lenders party
thereto.

                                R E C I T A L S:
                                ----------------

         A.       Debtor  and  Secured  Party  have  entered  into that  certain
Amended and  Restated  Pledge and Security  Agreement,  dated as of September 5,
2000 as the same may be amended,  modified,  supplemented,  renewed, extended or
restated from time to time, the "Security  Agreement";  all terms defined in the
Security Agreement, wherever used herein, shall have the same meanings herein as
are prescribed by the Security Agreement).

         B.       Pursuant to the terms of the  Security  Agreement,  Debtor has
granted to Secured Party a lien and security interest in all General Intangibles
of Debtor  including,  without  limitation,  all of Debtor's right,  title,  and
interest  in, to and under all now owned  and  hereafter  acquired  Patents  and
Patent Licenses, and all products and Proceeds thereof, to secure the payment of
the Obligations (as defined in the Credit Agreement).

         NOW, THEREFORE,  for good and valuable  consideration,  the receipt and
sufficiency  of which are hereby  acknowledged,  Debtor hereby grants to Secured
Party a lien and continuing  security interest in all of Debtor's right,  title,
and  interest in, to, and under the  following  (all of the  following  items or
types  of  Property  being  herein  collectively  referred  to  as  the  "Patent
Collateral"), whether presently existing or hereafter created or acquired:

                  (1)      each  Patent  and  each   application  for  a  Patent
         ("Patent Application"),  including, without limitation, each Patent and
         Patent Application  referred to in Schedule 1 annexed hereto,  together
         with   any   reissues,   continuations,    divisions,    modifications,
         substitutions or extensions thereof;

                  (2)      each Patent License,  including,  without limitation,
         each Patent License referred to in Schedule 1 annexed hereto; and

                  (3)      all   products   and   Proceeds  of  the   foregoing,
         including,  without  limitation,  any  claim by  Debtor  against  third
         parties  for past,  present,  or future  infringement  or breach of any
         Patent or Patent License, including,  without limitation, any Patent or
         Patent License referred to in Schedule 1 annexed hereto, and any Patent
         issued  pursuant  to a Patent  Application  referred  to in  Schedule 1
         annexed hereto.

The lien and  security  interest  contained  in this  Agreement  is  granted  in
conjunction  with the liens and  security  interests  granted to  Secured  Party
pursuant to the Security Agreement.

                                       71
<PAGE>

         Debtor hereby  acknowledges and affirms that the rights and remedies of
Secured  Party with  respect to the liens and  security  interests in the Patent
Collateral  made and  granted  hereby are more  fully set forth in the  Security
Agreement,  the terms and  provisions  of which are  incorporated  by  reference
herein as if fully set forth herein.

         IN  WITNESS  WHEREOF,  Debtor  has  caused  this  Agreement  to be duly
executed by its duly authorized officer as of the ___ day of _________, ____.

                                     DEBTOR:
                                     ------

                                     SAVVIS COMMUNICATIONS CORPORATION
                                     a Missouri corporation

                                     By:
                                         -----------------------------------
                                     Name:   David J. Frear
                                     Title:  Chief Financial Officer

                                     SECURED PARTY:
                                     -------------

                                     NORTEL NETWORKS INC.,
                                     as Administrative Agent

                                     By:
                                         -----------------------------------
                                     Name:   Mitchell L. Stone
                                     Title:  Director, Customer Finance

                                       72
<PAGE>

                                 ACKNOWLEDGMENT

STATE OF ______________    )
                                            )
COUNTY OF _____________    )

         This  instrument  was  acknowledged  before  me  this  _______  day  of
_________,   ____,   by   _____________________,   as   ___________   of  Savvis
Communications   Corporation,   a  Missouri  corporation,   on  behalf  of  such
corporation.

                                           -------------------------------------
         {Seal}                            Notary Public in and for the State of

My commission expires:_____________________

STATE OF ______________    )
                                            )
COUNTY OF _____________    )

         This  instrument  was  acknowledged   before  me  this  ______  day  of
_________, ____, by _______________, as _____________ of Nortel Networks Inc., a
Delaware corporation, on behalf of such corporation.

                                           -------------------------------------
         {Seal}                            Notary Public in and for the State of

My commission expires:_____________________

                                       73
<PAGE>

                                   Schedule 1
                                       to
                            Patent Security Agreement

                                     PATENTS

<TABLE>
<CAPTION>
============================================================================================================================
OWNER OF RECORD    COUNTRY OF         PATENT          APPLICATION OR    REGISTRATION OR   ISSUE DATE (IF   EXPIRATION DATE
                     ORIGIN       IDENTIFICATION     REGISTRATION NO.     FILING DATE         KNOWN)
============================================================================================================================
<S>               <C>            <C>                <C>                 <C>               <C>              <C>

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

============================================================================================================================
</TABLE>

                                 PATENT LICENSES

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
NAME OF AGREEMENT                      PATENT                               DATE OF AGREEMENT
-----------------------------------------------------------------------------------------------------------
<S>                             <C>                                 <C>

-----------------------------------------------------------------------------------------------------------
</TABLE>

                                       74
<PAGE>

                                    EXHIBIT C

                          TRADEMARK SECURITY AGREEMENT

                                       75
<PAGE>

                          TRADEMARK SECURITY AGREEMENT
                          ----------------------------
                       (Savvis Communications Corporation)

         THIS  TRADEMARK  SECURITY  AGREEMENT  ("Agreement")  is between  Savvis
Communications  Corporation,  a  Missouri  corporation  ("Debtor"),  and  Nortel
Networks Inc., a Delaware corporation ("Secured Party"),  acting in its capacity
as  Administrative  Agent pursuant to that certain  Amended and Restated  Credit
Agreement  dated as of September 5, 2000 (as the same may be amended,  modified,
supplemented,  renewed,  extended  or  restated  from time to time,  the "Credit
Agreement") among Debtor, Holdings,  Secured Party and each of the Lenders party
thereto.

                                R E C I T A L S:
                                ----------------

         A.       Debtor  and  Secured  Party  have  entered  into that  certain
Amended and  Restated  Pledge and Security  Agreement,  dated as of September 5,
2000 (as the same may be amended, modified,  supplemented,  renewed, extended or
restated from time to time, the "Security  Agreement";  all terms defined in the
Security Agreement, wherever used herein, shall have the same meanings herein as
are prescribed by the Security Agreement).

         B.       Pursuant to the terms of the  Security  Agreement,  Debtor has
granted to Secured Party a lien and security interest in all General Intangibles
of Debtor,  including,  without  limitation,  all of Debtor's right,  title, and
interest  in, to and under all now  owned  and  hereafter  acquired  Trademarks,
together with the goodwill of the business  symbolized  by Debtor's  Trademarks,
and Trademark  Licenses,  and all products and Proceeds  thereof,  to secure the
payment of the Obligations (as defined in the Credit Agreement).

         NOW, THEREFORE,  for good and valuable  consideration,  the receipt and
sufficiency  of which are hereby  acknowledged,  Debtor hereby grants to Secured
Party a lien and continuing  security interest in all of Debtor's right,  title,
and  interest in, to, and under the  following  (all of the  following  items or
types of  Property  being  herein  collectively  referred  to as the  "Trademark
Collateral"), whether presently existing or hereafter created or acquired:

                  (1)  each  Trademark,   trademark   registration   ("Trademark
         Registration")  and trademark  application  ("Trademark  Application"),
         including,  without limitation, each Trademark,  Trademark Registration
         and  Trademark  Application  referred to in Schedule 1 annexed  hereto,
         together with the goodwill of the business symbolized thereby; and

                  (2) each Trademark  License,  including,  without  limitation,
         each Trademark License listed in Schedule 1 annexed hereto; and

                  (3) all  products and  proceeds of the  foregoing,  including,
         without limitation, any claim by Debtor against third parties for past,
         present  or  future  (a)  infringement,   dilution  or  breach  of  any
         Trademark, Trademark Registration,  Trademark Application and Trademark
         License,  including,  without  limitation,  any  Trademark,   Trademark
         Registration  and Trademark  License  referred to in Schedule 1 annexed
         hereto, and any Trademark  Registration  issued pursuant to a Trademark
         Application  referred to in Schedule 1 annexed hereto; or (b) injury to
         the goodwill associated with any Trademark,  Trademark Registration and
         Trademark Application.

                                       76
<PAGE>

The lien and  security  interest  contained  in this  Agreement  is  granted  in
conjunction  with the liens and  security  interests  granted to  Secured  Party
pursuant to the Security Agreement.

         Debtor hereby  acknowledges and affirms that the rights and remedies of
Secured Party with respect to the liens and security  interests in the Trademark
Collateral  made and  granted  hereby are more  fully set forth in the  Security
Agreement,  the terms and  provisions  of which are  incorporated  by  reference
herein as if fully set forth herein.

                                       77
<PAGE>

         IN  WITNESS  WHEREOF,  Debtor  has  caused  this  Agreement  to be duly
executed by its duly authorized officer as of the 5th day of September, 2000.

                                     DEBTOR:
                                     ------

                                     SAVVIS COMMUNICATIONS CORPORATION,
                                     a Missouri Corporation

                                     By:
                                         ------------------------------------
                                     Name:   David J. Frear
                                     Title:  Executive Vice President,
                                             Chief Financial Officer

                                     SECURED PARTY:
                                     -------------

                                     NORTEL NETWORKS INC.,
                                     as Administrative Agent

                                     By:
                                         ------------------------------------
                                     Name:   Mitchell L. Stone
                                     Title:  Director, Customer Finance

                                       78
<PAGE>

                                 ACKNOWLEDGMENT

STATE OF ______________    )
                                            )
COUNTY OF _____________    )

         This instrument was  acknowledged  before me this 5th day of September,
2000, by David J. Frear, as Executive Vice President, Chief Financial Officer of
Savvis Communications  Corporation,  a Missouri  corporation,  on behalf of such
corporation.

                                           -------------------------------------
         {Seal}                            Notary Public in and for the State of

My commission expires:_____________________

STATE OF ______________    )
                                            )
COUNTY OF _____________    )

         This instrument was  acknowledged  before me this 5th day of September,
2000, by Mitchell L. Stone,  as Director,  Customer  Finance of Nortel  Networks
Inc., a Delaware corporation, on behalf of such corporation.

                                           -------------------------------------
         {Seal}                            Notary Public in and for the State of

My commission expires:_____________________

                                       79
<PAGE>

                                   Schedule 1
                                       to
                          Trademark Security Agreement

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                TRADEMARKS
------------------------------------------------------------------------------------------------------------------------------------
Trademark           Country               Filing        Application      Registration    Registration      Status         Class/
                                           Date           Number             Date           Number                        Goods
------------------------------------------------------------------------------------------------------------------------------------
<S>                <C>                   <C>            <C>              <C>             <C>              <C>           <C>
Diamond.Net
   ISP, Inc.        USA                  3/28/1997      75/266,524        02/10/1998      2,135,966        Registered    38

Savvis              Argentina            08/10/1999     2,233,944                                          Pending       38

Savvis              Australia            09/01/1999     805747                                             Pending       38

Savvis              Austria              08/09/1999     AM 4944/99                                         Pending

Savvis              Benelux              08/13/1999     944.192                                            Pending       38,42

Savvis              Bermuda              09/28/1999     31093                                              Pending

Savvis              Brazil               10/20/1999     N/A                                                Pending

Savvis              Canada               08/06/1999     N/A                                                Pending

Savvis              Cayman Islands       08/06/1999     N/A                                                Pending

Savvis              Chile                09/28/1999     462.343           02/23/2000      562.134          Registered    36

Savvis              China                10/26/1999     9900126680                                         Pending

Savvis              Colombia             08/06/1999     99055381                                           Pending

Savvis              Denmark              08/10/1999     VA 1999 03241     06/02/2000      VR 2000 02409    Registered    9,38,42

Savvis              Finland              08/13/1999     T199902524                                         Pending

Savvis              France               08/10/1999     99 807 353        08/10/1999      99 807 353       Registered

Savvis              Germany              08/11/1999     39948151.6/38     02/24/2000      399 48 151       Registered

Savvis              Greece               12/27/1999     142742                                             Pending       38,42

Savvis              Hong Kong            09/02/1999     99/12015          09/02/1999      6116/2000        Registered

Savvis              India                09/08/1999     875438                                             Pending       16

Savvis              Indonesia            08/10/1999     J99-14299                                          Pending

Savvis              Ireland              08/09/1999     99/2711                                            Pending       38

Savvis              Italy                08/06/1999     N/A                                                Pending

Savvis              Japan                09/24/1999     78023/1999                                         Pending

Savvis              Malaysia             09/27/1999     99/09513                                           Pending

Savvis              Mexico               08/19/1999     387764                                             Pending

                                       80
<PAGE>

<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                TRADEMARKS
------------------------------------------------------------------------------------------------------------------------------------
Trademark           Country               Filing        Application      Registration    Registration      Status         Class/
                                           Date           Number             Date           Number                        Goods
------------------------------------------------------------------------------------------------------------------------------------
<S>                <C>                   <C>            <C>              <C>             <C>              <C>           <C>
Savvis              New Zealand          08/06/1999     314238                                             Pending

Savvis              Norway               08/10/1999     99.07982          11/10/1999      704.008          Registered

Savvis              Oman                 08/22/1999     20718                                              Pending       38

Savvis              Panama               01/07/2000     104756                                             Pending       42

Savvis              Peru                 08/26/1999     90061             2/14/2000       20335            Registered

Savvis              Philippines          08/06/1999     4-1999-000576                                      Pending

Savvis              Portugal             05/22/2000     346732                                             Pending       38

Savvis              Qatar                08/22/1999     21227                                              Pending

Savvis              Saudi Arabia         01/30/2000     62338                                              Pending

Savvis              Singapore            08/11/1999     T99/08532F                                         Pending

Savvis              South Africa         08/11/1999     99/14532                                           Pending

Savvis              South Korea          08/11/1999     99-11609                                           Pending       38

Savvis              Spain                11/04/1999     2268139                                            Pending       38

Savvis              Sweden               08/11/1999     99-05606                                           Pending       35,38,42

Savvis              Switzerland          08/10/1999     07169/1999                                         Pending

Savvis              Taiwan               08/06/1999     N/A                                                Pending

Savvis              Thailand             09/28/1999     399301                                             Pending       38

Savvis              Trinidad &           08/06/1999     N/A                                                Pending

Savvis              United Arab EMR      02/14/2000     35012                                              Pending       38

Savvis              United Kingdom       08/12/1999     2205574                                            Pending       38

                                       81
<PAGE>

<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                TRADEMARKS
------------------------------------------------------------------------------------------------------------------------------------
Trademark           Country               Filing        Application      Registration    Registration      Status         Class/
                                           Date           Number             Date           Number                        Goods
------------------------------------------------------------------------------------------------------------------------------------
<S>                <C>                   <C>            <C>              <C>             <C>              <C>           <C>
Savvis              Venezuela            03/30/2000     2000-005288                                        Pending

Savvis              USA                  10/06/1999     75/816754

Savvis
   Communications   USA                  11/26/1996     75/204,404        04/07/1998      2,148,947        Registered    38

BPP                 USA                  03/16/1998     75/451055

Miscellaneous
   Design (SWIRL)   USA                  03/28/1997     75/266524         02/10/1998      2135966

Privatenap          USA                  10/06/1999     75/816756

Proactive
   Network          USA                  10/06/1999     75/816557

Proconnect          USA                  10/06/1999     75/816511

Prolink             USA                  10/06/1999     75/816915         07/04/2000      2364749

Promanaged          USA                  10/06/1999     75/816755

Promanaged Plus     USA                  10/06/1999     75/816753

Prosecure           USA                  10/06/1999     75/816560
</TABLE>

<TABLE>
<CAPTION>
====================================================================================================================================
                                                         TRADEMARK LICENSES
------------------------------------------------------------------------------------------------------------------------------------
             Name of Agreement                               Parties                                   Date of Agreement
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                <C>                                            <C>

------------------------------------------------------------------------------------------------------------------------------------
None.
====================================================================================================================================
</TABLE>

                                       82
<PAGE>

                                    EXHIBIT D

                                FORM OF AMENDMENT

                                       83
<PAGE>

                   AMENDMENT TO PLEDGE AND SECURITY AGREEMENT

         This Amendment, dated _______________,  _____, is delivered pursuant to
Section  4.17(b) of the Pledge and  Security  Agreement  referred to below.  The
undersigned  hereby  agrees that this  Amendment may be attached to that certain
Amended and  Restated  Pledge and Security  Agreement,  dated as of September 5,
2000 (the "Security  Agreement"),  between the  undersigned  and Nortel Networks
Inc.,  as  Administrative  Agent  ("Administrative  Agent")  under that  certain
Amended  and  Restated  Credit  Agreement  dated as of  September  5, 2000 among
Debtor,  Holdings,  Administrative Agent and the Lenders party thereto, and that
the Capital Stock, notes or other securities or instruments listed on Schedule 1
annexed  hereto  shall be and become part of the  Collateral  referred to in the
Security  Agreement and shall secure payment and  performance of all Obligations
as provided in the Security Agreement.

         Capitalized  terms used  herein but not defined  herein  shall have the
meanings therefor provided in the Security Agreement.

                                     SAVVIS COMMUNICATIONS CORPORATION,
                                     a Missouri corporation

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

                                       84
<PAGE>

                                   Schedule 1
                                       to
                         Amendment to Security Agreement

<TABLE>
<CAPTION>
                                                                              Number of          Percentage of
                          Class of          Certificate                       Shares or        Outstanding Shares
      Issuer            Capital Stock          No(s).         Par Value       Interests           or Interests
-------------------- -------------------- ---------------- -------------- ------------------ -----------------------
<S>                  <C>                    <C>               <C>             <C>               <C>

</TABLE>

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"}]]