Document:

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                                                                   EXHIBIT 10.4

                          SALE AND SERVICING AGREEMENT

                                     between

                       ONYX ACCEPTANCE OWNER TRUST 2000-D
                                   as Issuer,

                      ONYX ACCEPTANCE FINANCIAL CORPORATION
                                   as Seller,

                           ONYX ACCEPTANCE CORPORATION
                                   as Servicer

                                       and

                            THE CHASE MANHATTAN BANK
                     as Indenture Trustee and as Trust Agent

                          Dated as of November 1, 2000

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                                TABLE OF CONTENTS
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ARTICLE I - DEFINITIONS......................................................................1
        SECTION 1.01. DEFINITIONS............................................................1
        SECTION 1.02. USAGE OF TERMS........................................................20
        SECTION 1.03. SECTION REFERENCES....................................................20
        SECTION 1.04. CALCULATIONS..........................................................20
        SECTION 1.05. ACCOUNTING TERMS......................................................20

ARTICLE II - CONVEYANCE OF CONTRACTS........................................................21
        REPRESENTATIONS AND WARRANTIES OF THE SELLER........................................21
        SECTION 2.01. CONVEYANCE OF CONTRACTS...............................................21
        SECTION 2.02. REPRESENTATIONS AND WARRANTIES OF THE SELLER..........................26
        SECTION 2.03. REPURCHASE OF CERTAIN CONTRACTS.......................................37
        SECTION 2.04. CUSTODY OF CONTRACT FILES.............................................38
        SECTION 2.05. DUTIES OF SERVICER RELATING TO THE CONTRACTS..........................39
        SECTION 2.06. INSTRUCTIONS; AUTHORITY TO ACT........................................41
        SECTION 2.07. INDEMNIFICATION.......................................................41
        SECTION 2.08. EFFECTIVE PERIOD AND TERMINATION......................................42
        SECTION 2.09. NONPETITION COVENANT..................................................42
        SECTION 2.10. COLLECTING TITLE DOCUMENTS NOT DELIVERED AT THE CLOSING
                      DATE..................................................................42

ARTICLE III - ADMINISTRATION AND SERVICING OF CONTRACTS.....................................43
        SECTION 3.01. DUTIES OF SERVICER....................................................43
        SECTION 3.02. COLLECTION OF CONTRACT PAYMENTS.......................................45
        SECTION 3.03. REALIZATION UPON CONTRACTS............................................46
        SECTION 3.04. INSURANCE.............................................................46
        SECTION 3.05. MAINTENANCE OF SECURITY INTERESTS IN FINANCED VEHICLES................46
        SECTION 3.06. COVENANTS, REPRESENTATIONS AND WARRANTIES OF SERVICER.................47
        SECTION 3.07. PURCHASE OF CONTRACTS UPON BREACH BY SERVICER.........................49
        SECTION 3.08. SERVICING COMPENSATION................................................49
        SECTION 3.09. REPORTING BY THE SERVICER.............................................50
        SECTION 3.10. ANNUAL STATEMENT AS TO COMPLIANCE.....................................53
        SECTION 3.11. ANNUAL INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT'S REPORT...............53
        SECTION 3.12. ACCESS TO CERTAIN DOCUMENTATION AND INFORMATION REGARDING
                      CONTRACTS.............................................................54
        SECTION 3.13. FIDELITY BOND.........................................................54
        SECTION 3.14. INDEMNIFICATION; THIRD PARTY CLAIMS...................................54
        SECTION 3.15. REPORTS TO NOTEHOLDERS AND THE RATING AGENCIES........................54
        SECTION 3.16. ACCESS TO LIST OF NOTEHOLDERS' NAMES AND ADDRESSES....................55

ARTICLE IV - DISTRIBUTIONS; SPREAD ACCOUNT..................................................55
               STATEMENTS TO NOTEHOLDERS....................................................55
        SECTION 4.01. ESTABLISHMENT OF TRUST ACCOUNTS.......................................55
        SECTION 4.02. COLLECTIONS; TRANSFERS TO PAYAHEAD ACCOUNT; REALIZATION UPON
                      POLICY; NET DEPOSITS; TRANSFERS TO PAYMENT ACCOUNT....................58
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                           TABLE OF CONTENTS (CONT'D.)
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        SECTION 4.03. DISTRIBUTIONS.........................................................59
        SECTION 4.04. SPREAD ACCOUNT........................................................60
        SECTION 4.05. STATEMENTS TO NOTEHOLDERS.............................................62
        SECTION 4.06. CAPITALIZED INTEREST ACCOUNT..........................................64
        SECTION 4.07. PREFUNDING ACCOUNT....................................................65
        SECTION 4.08. REQUIREMENTS RELATING TO PREFUNDING ACCOUNT...........................66

ARTICLE V - THE SELLER......................................................................66
        SECTION 5.01. LIABILITY OF SELLER; INDEMNITIES......................................66
        SECTION 5.02. MERGER OR CONSOLIDATION OF, OR ASSUMPTION OF THE OBLIGATIONS OF,
                      SELLER; CERTAIN LIMITATIONS...........................................66
        SECTION 5.03. LIMITATION ON LIABILITY OF SELLER AND OTHERS..........................67
        SECTION 5.04. SELLER NOT TO RESIGN..................................................67
        SECTION 5.05. SELLER MAY OWN NOTES..................................................67

ARTICLE VI - THE SERVICER...................................................................67
        SECTION 6.01. LIABILITY OF SERVICER; INDEMNITIES....................................67
        SECTION 6.02. CORPORATE EXISTENCE; STATUS AS SERVICER; MERGER.......................69
        SECTION 6.03. PERFORMANCE OF OBLIGATIONS............................................69
        SECTION 6.04. SERVICER NOT TO RESIGN; ASSIGNMENT....................................69
        SECTION 6.05. LIMITATION ON LIABILITY OF SERVICER AND OTHERS........................70

ARTICLE VII - DEFAULT.......................................................................71
        SECTION 7.01. EVENTS OF DEFAULT.....................................................71
        SECTION 7.02. TRUSTEE TO ACT; APPOINTMENT OF SUCCESSOR..............................73
        SECTION 7.03. NOTIFICATION TO NOTEHOLDERS AND RESIDUAL INTERESTHOLDERS..............73
        SECTION 7.04. WAIVER OF PAST DEFAULTS...............................................74
        SECTION 7.05. INSURER DIRECTION OF INSOLVENCY PROCEEDINGS...........................74

ARTICLE VIII - TERMINATION..................................................................74
        SECTION 8.01. OPTIONAL PURCHASE OF ALL CONTRACTS; SATISFACTION AND DISCHARGE
                      OF THE INDENTURE......................................................74
        SECTION 8.02. TRANSFER TO THE INSURER...............................................75

ARTICLE IX - MISCELLANEOUS..................................................................75
        SECTION 9.01. AMENDMENT.............................................................76
        SECTION 9.02. PROTECTION OF TITLE TO TRUST..........................................77
        SECTION 9.03. GOVERNING LAW.........................................................79
        SECTION 9.04. NOTICES...............................................................79
        SECTION 9.05. SEVERABILITY OF PROVISIONS............................................80
        SECTION 9.06. ASSIGNMENT............................................................80
        SECTION 9.07. THIRD PARTY BENEFICIARIES.............................................80
        SECTION 9.08. CERTAIN MATTERS RELATING TO THE INSURER...............................80
        SECTION 9.09. HEADINGS..............................................................81
        SECTION 9.10. ASSIGNMENT BY ISSUER..................................................81
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                           TABLE OF CONTENTS (CONT'D.)
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        SECTION 9.11. LIMITATION OF LIABILITY OF CERTAIN PARTIES............................81
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                                    EXHIBITS
                                    --------
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<S>                <C>
Schedule I-A   -   Schedule of Initial Contracts
Schedule I-B   -   Schedule of Subsequent Contracts
Schedule II    -   Location and Account Numbers of Trust Accounts
Exhibit A      -   Form of Appointment of Custodian
Exhibit B      -   Form of Policy
Exhibit C-1    -   Form of Transfer Certificate
Exhibit C-2    -   Form of Prefunding Closing Date Certificate
</TABLE>

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<PAGE>   5

        This SALE AND SERVICING AGREEMENT, dated as of November 1, 2000 (this
"AGREEMENT"), is between Onyx Acceptance Owner Trust 2000-D (the "ISSUER" or the
"TRUST"), Onyx Acceptance Financial Corporation (the "SELLER"), Onyx Acceptance
Corporation ("ONYX" or, in its capacity as servicer, the "SERVICER" or, in its
capacity as custodian, the "CUSTODIAN") and The Chase Manhattan Bank, as the
Indenture Trustee on behalf of the Noteholders (in such capacity, the "INDENTURE
TRUSTEE"), and as the Trust Agent on behalf of the Owner Trustee (in such
capacity, the "TRUST AGENT") .

        In consideration of the premises and the mutual covenants herein
contained, the parties hereto agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

        SECTION 1.01. DEFINITIONS.

        Whenever used in this Agreement, the following words and phrases, unless
the context otherwise requires, shall have the following meanings:

        "ACCELERATED PRINCIPAL COMMENCEMENT DATE" means the first Distribution
Date on which (i) the Pool Balance as of such Distribution Date is equal to or
less than 15% of the Original Pool Balance and (ii) the amount of cash on
deposit in the Spread Account together with the other components of the Spread
Account is equal to or greater than the Spread Account Maximum (after giving
effect to the distribution pursuant to Section 4.03(viii) of this Agreement on
such Distribution Date).

        "ACCELERATED PRINCIPAL DISTRIBUTABLE AMOUNT" means, with respect to any
Distribution Date occurring on or after the Accelerated Principal Commencement
Date, the amount which would remain on deposit in the Payment Account for such
Distribution Date after giving effect to distributions pursuant to Section
4.03(i) through (viii) of this Agreement without regard to the inclusion of such
amount as part of the Note Principal Distributable Amount. The Accelerated
Principal Distributable Amount shall be included in the Note Principal
Distributable Amount until all of the Notes have been paid in full.

        "ACTUARIAL CONTRACT" means a Contract pursuant to which the allocation
of each payment between interest and principal is calculated using the Actuarial
Method.

        "ACTUARIAL METHOD" means the method of allocating principal and interest
payments on a Contract whereby amortization of the Contract is determined over a
series of fixed level payment monthly installments, and each monthly
installment, including the monthly installment representing the final payment on
the Contract, consists of an amount of interest equal to 1/12 of the APR of the
Contract multiplied by the unpaid principal balance of the Contract, and an
amount of principal equal to the remainder of the monthly payment.

        "AFFILIATE" of any specified Person means any other Person controlling
or controlled by or under common control with such specified Person. For the
purposes of this definition, "control" when used with respect to any specified
Person means the power to direct the management and

<PAGE>   6

policies of such Person, directly or indirectly, whether through the ownership
of voting securities, by contract or otherwise; and the terms "controlling" or
"controlled" have meanings correlative to the foregoing.

        "AMOUNT FINANCED" means, with respect to a Contract, the aggregate
amount advanced under such Contract toward the purchase price of the related
Financed Vehicle and related costs, including amounts advanced in respect of
accessories, insurance premiums, extended service or warranty contracts and
other items customarily financed as part of retail automobile installment sales
contracts.

        "APPOINTMENT OF CUSTODIAN" means the letter agreement between the
Indenture Trustee, the Insurer and the Servicer substantially in the form
attached hereto as Exhibit A.

        "APR" of a Contract means the annual percentage rate used to determine
the total interest expected to be charged over the term of a Contract as of its
inception, as shown on such Contract.

        "BASIC DOCUMENTS" shall have the meaning specified in the Indenture.

        "BLANKET INSURANCE POLICY" means the Creditors Comprehensive Single
Interest Insurance Policy covering losses with respect to the Contracts, which
policy has been issued by Great American Insurance Company and the Seller's
rights in which, with respect to the Contracts, have been validly assigned to
the Indenture Trustee acting on behalf of the Trust.

        "BUSINESS DAY" means any day other than a Saturday, a Sunday or other
day on which commercial banking institutions or savings associations located in
Los Angeles, California or New York, New York are authorized or obligated by
law, regulation, executive order or governmental decree to be closed.

        "CALCULATION DAY" means the last day of each calendar month.

        "CAPITALIZED INTEREST ACCOUNT" means the account designated as such and
established pursuant to Section 4.01 and maintained pursuant to Section 4.06.

        "CAPITALIZED INTEREST AMOUNT" means, with respect to each Distribution
Date following a Collection Period during which amounts are on deposit in the
Prefunding Account, an amount equal to the greater of:

               (a) the sum of the Note Interest Distributable Amount for such
        Distribution Date, plus the sum of the fees payable to the Owner
        Trustee, the Indenture Trustee and the Trust Agent and the premium
        payable to the Insurer for such Distribution Date, in each case,
        allocable to the balance in the Prefunding Account at the beginning of
        the related Collection Period, on a pro rata basis, minus the earnings
        received by the Indenture Trustee on behalf of the Trust during the
        related Collection Period from investment of the funds on deposit in the
        Prefunding Account; and

               (b) the amount, if any, by which (i) the sum of the Servicing
        Fees, the Note Interest Distributable Amount, the fees payable to the
        Owner Trustee, the Indenture Trustee and the Trust Agent and the premium
        payable to the Insurer for such Distribution Date exceeds (ii)

                                       -2-

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        Net Collections plus the earnings received by the Indenture Trustee on
        behalf of the Trust during the related Collection Period from investment
        of the funds on deposit in the Prefunding Account.

        "CERTIFICATE REGISTER" shall have the meaning specified in the Trust
Agreement.

        "CLASS" means all Notes whose form is identical except for variation in
denomination, principal amount or owner.

        "CLASS A-1 FINAL SCHEDULED DISTRIBUTION DATE" means the Distribution
Date occurring in November 2001.

        "CLASS A-1 NOTE" means any Class A-1 Note in the form attached to the
Indenture as Exhibit B.

        "CLASS A-1 RATE" means 6.7025% per annum.

        "CLASS A-2 FINAL SCHEDULED DISTRIBUTION DATE" means the Distribution
Date occurring in July 2003.

        "CLASS A-2 NOTE" means any Class A-2 Note in the form attached to the
Indenture as Exhibit C.

        "CLASS A-2 RATE" means 6.6700% per annum.

        "CLASS A-3 FINAL SCHEDULED DISTRIBUTION DATE" means the Distribution
Date occurring in December 2004.

        "CLASS A-3 NOTE" means any Class A-3 Note in the form attached to the
Indenture as Exhibit D.

        "CLASS A-3 RATE" means 6.6900% per annum.

        "CLASS A-4 FINAL SCHEDULED DISTRIBUTION DATE" means the Distribution
Date occurring in August 2007.

        "CLASS A-4 NOTE" means any Class A-4 Note in the form attached to the
Indenture as Exhibit E.

        "CLASS A-4 RATE" means 6.8500% per annum.

        "CLASS A NOTES" means the Class A-1 Notes, the Class A-2 Notes, the
Class A-3 Notes and the Class A-4 Notes.

        "CLEARING ACCOUNT" means Account No. 4159359173 in the name of the
Seller maintained at Wells Fargo Bank, N.A.

        "CLOSING DATE" means November 16, 2000.

                                       -3-

<PAGE>   8

        "COLLECTION ACCOUNT" means the account established and maintained as
such pursuant to Section 4.01.

        "COLLECTION PERIOD" means, with respect to any Distribution Date, the
calendar month preceding the month in which such Distribution Date occurs;
provided that with respect to Liquidated Contracts, the Collection Period will
be the period from but excluding the sixth Business Day preceding the
immediately preceding Distribution Date to and including the sixth Business Day
preceding such Distribution Date. With respect to the first Distribution Date
the "Collection Period" for Liquidated Contracts shall be the period from and
including the related Cut-Off Date to and including the sixth Business Day
preceding such first Distribution Date.

        "CONTRACT" means each retail installment sales contract and security
agreement or installment loan agreement and security agreement and all proceeds
thereof and payments thereunder, which contract or agreement has been executed
by an Obligor and pursuant to which such Obligor purchased or financed the
Financed Vehicle described therein, agreed to pay the deferred purchase price
(i.e., the purchase price net of any down payment) or amount borrowed, together
with interest, as therein provided in connection with such purchase or loan,
granted a security interest in such Financed Vehicle, and undertook to perform
certain other obligations as specified in such contract or agreement. Each
Contract shall have been (i) originated by a Dealer and assigned to Onyx in
accordance with the assignment provisions set forth therein, (ii) subsequently
conveyed by Onyx to the Seller pursuant to the Purchase Agreement and (iii)
subsequently conveyed by the Seller to the Issuer pursuant to this Agreement. As
used herein, "Contracts" means the Initial Contracts, the Subsequent Contracts
and the Prefunded Contracts.

        "CONTRACT DOCUMENTS" means, with respect to each Contract, (a) the
Contract and the original credit application fully executed by the Obligor
thereunder; (b) either (i) the original Title Document for the related Financed
Vehicle or a duplicate copy thereof issued or certified by the Registrar of
Titles which issued the original thereof (or, with respect to certain of the
Financed Vehicles registered in the State of California, evidence of the
electronic Title Document), together with evidence of perfection of the security
interest in the related Financed Vehicle granted by such Contract, as determined
by the Servicer to be permitted or required to perfect such security interest
under the laws of the applicable jurisdiction, or (ii) written evidence that the
Title Document for such Financed Vehicle showing Onyx as first lienholder has
been applied for; (c) any agreement(s) modifying the Contract (including,
without limitation, any extension agreement(s)); (d) any signed agreement by an
Obligor to provide insurance with Onyx listed as loss payee and (e) any
documents specifically relating to the Obligor or the Financed Vehicle. The
documents referred to above, other than the Contracts, to the extent expressly
permitted by the Insurer in writing, may be maintained in microfiche or
electronic form.

        "CONTRACT FILES" means all papers and computerized records customarily
kept by the Servicer in servicing contracts and loans comparable to the
Contracts.

        "CONTRACT NUMBER" means, with respect to any Contract included in the
Trust, the number assigned to such Contract by the Servicer, which number is set
forth in the related Schedule of Contracts.

        "CORPORATE TRUST OFFICE" means the principal office of the Indenture
Trustee at which at any particular time its corporate trust business shall be
administered, which office at the date of the

                                       -4-

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execution of this Agreement is located at 450 West 33rd Street, 14th Floor, New
York, New York 10001-2697, Attention: Capital Market Fiduciary Services; or at
such other address as the Indenture Trustee may designate from time to time by
notice to the Noteholders, the Insurer, the Servicer and the Seller.

        "CRAM DOWN LOSS" means, with respect to a Contract if a court of
appropriate jurisdiction in an insolvency proceeding shall have issued an order
reducing the amount owed on such Contract or otherwise modifying or
restructuring the scheduled payments to be made on such Contract, an amount
equal to (i) the excess of the Principal Balance of such Contract immediately
prior to such order over the Principal Balance of such Contract as so reduced
and/or (ii) if such court shall have issued an order reducing the effective rate
of interest on such Contract, the excess of the Principal Balance of such
Contract immediately prior to such order over the net present value (using as
the discount rate the higher of the annual percentage rate on such Contract or
the rate of interest, if any, specified by the court in such order) of the
scheduled payments as so modified or restructured. A Cram Down Loss shall be
deemed to have occurred on the date of issuance of such order.

        "CUSTODIAN" means Onyx until such time, if any, a Successor Custodian is
appointed and thereafter means such Successor Custodian.

        "CUT-OFF DATE" means, as applicable, (i) the Initial Cut-Off Date, with
respect to the Initial Contracts, (ii) the Subsequent Cut-Off Date, with respect
to the Subsequent Contracts or (iii) the Prefunding Cut-Off Date with respect to
the Prefunded Contracts.

        "DEALER" means the seller of a Financed Vehicle, which seller originated
and assigned the related Contract.

        "DEFAULT" means any occurrence which with the giving of notice or the
lapse of time or both would become a Servicer Default.

        "DEFAULTED CONTRACT" means, with respect to any Collection Period, a
Contract (i) which is, at the end of such Collection Period, delinquent in the
amount of at least two monthly installments of Monthly P&I or (ii) with respect
to which the related Financed Vehicle has been repossessed or repossession
efforts with respect to the related Financed Vehicle have been commenced.

        "DEFICIENCY AMOUNT" means as of any Distribution Date, the amount by
which (i) the sum of the amounts set forth in Section 4.03(i) though (iv) with
respect to such Distribution Date exceeds (ii) the amount of Net Collections
(plus amounts transferred from the Prefunding Account representing earnings from
investments therein and amounts transferred from the Capitalized Interest
Account, in each case to the Payment Account) available with respect to such
Distribution Date and the amount on deposit in the Spread Account as of such
Distribution Date.

        "DEFICIENCY NOTICE" means, with respect to any Distribution Date, the
notice delivered pursuant to Section 4.02(c) by the Servicer to the Indenture
Trustee, with a copy to the Insurer and the Trust Agent.

        "DEFINITIVE NOTES" means Notes issued in fully registered, certificated
form to Noteholders.

                                       -5-

<PAGE>   10

        "DEPOSITOR" means the Seller in its capacity as Depositor under the
Trust Agreement, and its successors.

        "DISTRIBUTION DATE" means the 15th day of each month or if such date
shall not be a Business Day, the following Business Day, commencing on
December 15, 2000.

        "DISTRIBUTION DATE STATEMENT" shall have the meaning specified in
Section 3.09(a).

        "DUE DATE" means, as to any Contract, the date upon which an installment
of Monthly P&I is due.

        "ELIGIBLE ACCOUNT" means (i) a trust account that is either (a)
maintained by the Indenture Trustee, (b) maintained with a depository
institution or trust company the commercial paper or other short-term debt
obligations of which have credit ratings from Standard & Poor's at least equal
to "A-1" and from Moody's equal to "P-1," which account is fully insured up to
applicable limits by the Federal Deposit Insurance Corporation or (c) maintained
with a depository institution acceptable to the Insurer, as evidenced by a
letter from the Insurer to that effect or (ii) a general ledger account or
deposit account at a depository institution acceptable to the Insurer, as
evidenced by a letter from the Insurer to that effect.

        "ELIGIBLE INVESTMENTS" means any one or more of the following
obligations or securities, all of which shall be denominated in United States
dollars:

        (a) direct obligations of, and obligations fully guaranteed as to timely
payment of principal and interest by, the United States of America or any agency
or instrumentality of the United States of America the obligations of which are
backed by the full faith and credit of the United States of America and, to the
extent, at the time of investment, acceptable to the Insurer and each Rating
Agency for securities having a rating equivalent to the rating of the Notes at
the Closing Date, the direct obligations of, or obligations fully guaranteed by,
the Federal Home Loan Mortgage Corporation and the Federal National Mortgage
Association;

        (b) demand and time deposits in, certificates of deposit of, banker's
acceptances issued by, or federal funds sold by any depository institution or
trust company (including the Indenture Trustee or the Owner Trustee)
incorporated under the laws of the United States of America or any State and
subject to supervision and examination by Federal and/or State banking
authorities, so long as at the time of such investment or contractual commitment
providing for such investment either (i) the long-term, unsecured debt
obligations of such depository institution or trust company have credit ratings
from Standard & Poor's at least equal to "AA-" and from Moody's at least equal
to "Aa2" or (ii) such depository institution is acceptable to the Insurer as
evidenced by a letter from the Insurer to the Indenture Trustee;

        (c) repurchase obligations with respect to (i) any security described in
clause (a) above or (ii) any other security issued or guaranteed as to timely
payment of principal and interest by an agency or instrumentality of the United
States of America, in either case entered into with any depository institution
or trust company (including the Indenture Trustee and the Owner Trustee), acting
as principal, described in clause (b) above;

                                       -6-

<PAGE>   11

        (d) securities bearing interest or sold at a discount issued by any
corporation incorporated under the laws of the United States of America or any
state thereof which at the time of such investment or contractual commitment
providing for such investment have long-term, unsecured debt obligations rated
by Standard & Poor's "AA-" or better and by Moody's "Aa2" or better; provided,
however, that securities issued by any corporation will not be Eligible
Investments to the extent that investment therein will cause the then
outstanding principal amount of securities issued by such corporation and held
as part of the Trust to exceed 10% of the aggregate Outstanding Principal
Balances of the Contracts and all amounts of Eligible Investments held as part
of the Trust;

        (e) commercial paper having the highest rating by Standard & Poor's and
Moody's at the time of such investment;

        (f) investments in money market funds or money market mutual funds
having a rating from Standard & Poor's and Moody's in the highest investment
category granted thereby, including funds for which the Indenture Trustee, the
Owner Trustee or any of their respective Affiliates is investment manager or
advisor; and

        (g) such other obligations or securities acceptable to the Insurer, as
evidenced by a letter from the Insurer to the Indenture Trustee (which
acceptability may be revoked at any time by the Insurer), a copy of which shall
be provided by the Indenture Trustee to the Rating Agencies.

        "EXCHANGE ACT" means the Securities Exchange Act of 1934, as amended.

        "FINANCED VEHICLE" means, as to any Contract, an automobile, light-duty
truck or van, together with all accessions thereto, securing the related
Obligor's indebtedness under such Contract.

        "FISCAL AGENT" shall have the meaning set forth in the Policy.

        "FULL PREPAYMENT" means any of the following: (a) with respect to any
Contract other than a Contract referred to in clause (ii), (iii) or (iv) of the
definition of the term "Liquidated Contract", payment by or on behalf of the
Obligor of the total amount required by the terms of such Contract to be paid
thereunder, which amount shall be at least equal to the sum of (i) 100% of the
Principal Balance of such Contract, (ii) interest accrued thereon to the date of
such payment at the APR; and (iii) any overdue amounts; or (b) with respect to
any Contract, payment by the Seller to the Indenture Trustee of the Purchase
Amount of such Contract in connection with the purchase of such Contract
pursuant to Section 2.03, or payment by the Servicer of the Purchase Amount of
such Contract in connection with the purchase of such Contract pursuant to
Section 3.07 or the purchase of all Contracts pursuant to Section 8.01.

        "FUNDED CONTRACTS" means all Initial Contracts and Subsequent Contracts.

        "FUNDING PERIOD" shall have the meaning specified in Section 4.08(a).

        "HOLDER" or "NOTEHOLDER" means, with respect to a Note, the Person in
whose name such Note is registered in the Note Register.

        "INDEMNIFICATION AGREEMENT" shall have the meaning specified in the
Insurance Agreement.

                                       -7-

<PAGE>   12

        "INDENTURE" means the Indenture, dated as of the date hereof, between
the Issuer and the Indenture Trustee.

        "INDENTURE EVENT OF DEFAULT" means an Event of Default as set forth in
Section 5.01 of the Indenture.

        "INDENTURE TRUSTEE" means The Chase Manhattan Bank, not in its
individual capacity but solely as the Indenture Trustee under the Indenture, its
successors in interest and any successor Indenture Trustee under the Indenture.

        "INITIAL CAPITALIZED INTEREST AMOUNT" means $836,046.43.

        "INITIAL CONTRACTS" means the Contracts designated as such in Schedule
I-A attached hereto.

        "INITIAL CUT-OFF DATE" means as of the close of business on October 31,
2000.

        "INSOLVENCY PROCEEDING" shall have the meaning specified in Section
7.05.

        "INSURANCE AGREEMENT" means the Insurance and Reimbursement Agreement,
to be dated as of the Closing Date, among the Insurer, the Seller, Onyx and the
Servicer, as amended, modified or restated from time to time.

        "INSURER" means MBIA Insurance Corporation or its successors in
interest.

        "INSURER DEFAULT" means the occurrence and continuance of any of the
following:

               (i) the Insurer shall have failed to make a payment required to
        be made under the Policy in accordance with its terms;

               (ii) the Insurer shall have (a) filed a petition or commenced any
        case or proceeding under any provision or chapter of the United States
        Bankruptcy Code or any other similar federal or state law relating to
        insolvency, bankruptcy, rehabilitation, liquidation or reorganization,
        (b) made a general assignment for the benefit of its creditors or (c)
        had an order for relief entered against it under the United States
        Bankruptcy Code or any other similar federal or state law relating to
        insolvency, bankruptcy, rehabilitation, liquidation or reorganization
        which is final and nonappealable; or

               (iii) a court of competent jurisdiction, the New York Department
        of Insurance or other competent regulatory authority shall have entered
        a final and nonappealable order, judgment or decree (a) appointing a
        custodian, trustee, agent or receiver for the Insurer or for all or any
        material portion of its property or (b) authorizing the taking of
        possession by a custodian, trustee, agent or receiver of the Insurer (or
        the taking of possession of all or any material portion of the property
        of the Insurer).

        "INTEREST ACCRUAL PERIOD" means, with respect to any Distribution Date,
the period from and including the Distribution Date immediately preceding such
Distribution Date (or, in the case of the first Distribution Date, from and
including the Closing Date) to but excluding such Distribution Date; in the case
of the first Distribution Date, the Interest Accrual Period will constitute 18
days.

                                       -8-

<PAGE>   13

        "INTEREST RATE" means the Class A-1 Rate, the Class A-2 Rate, the Class
A-3 Rate or the Class A-4 Rate, as the case may be.

        "ISSUER" means Onyx Acceptance Owner Trust 2000-D and its successors.

        "LIEN" means a security interest, lien, charge, pledge, equity or
encumbrance of any kind, other than tax liens, mechanics' liens and any liens
that attach to the respective Contract by operation of law.

        "LIQUIDATED CONTRACT" means a Contract that (i) is the subject of a Full
Prepayment; (ii) is a Defaulted Contract with respect to which Liquidation
Proceeds constituting, in the Servicer's reasonable judgment, the final amounts
recoverable have been received and deposited in the Collection Account; (iii) is
paid in full on or after its Maturity Date; or (iv) has been a Defaulted
Contract for four or more Collection Periods and as to which Liquidation
Proceeds have not been deposited in the Collection Account; provided, however,
that in any event a Contract that is delinquent in the amount of five monthly
installments of Monthly P&I at the end of a Collection Period shall be deemed to
be a Liquidated Contract and shall be deemed to have a Principal Balance of
zero.

        "LIQUIDATION EXPENSES" means reasonable out-of-pocket expenses (not to
exceed Liquidation Proceeds), other than any overhead expenses, incurred by the
Servicer in connection with the realization of the full amounts due under any
Defaulted Contract (including the attempted liquidation of a Contract which is
brought current and is no longer in default during such attempted liquidation)
and the sale of any property acquired in respect thereof which are not
recoverable as proceeds paid by any insurer under a comprehensive and collision
insurance policy related to the Contract. Liquidation Expenses shall not include
any late fees or other administrative fees and expenses or similar charges
collected with respect to a Contract.

        "LIQUIDATION PROCEEDS" means amounts received by the Servicer (before
reimbursement for Liquidation Expenses) in connection with the realization of
the full amounts due and to become due under any Defaulted Contract and the sale
of any property acquired in respect thereof.

        "MANDATORY PARTIAL REDEMPTION AMOUNT" means the balance (excluding
investment earnings) remaining on deposit in the Prefunding Account on the
Mandatory Partial Redemption Date after giving effect to the sale to the Trust
of all Prefunded Contracts sold to the Trust during the Funding Period,
including any such acquisition and conveyance on the date on which the Funding
Period ends.

        "MANDATORY PARTIAL REDEMPTION DATE" means the Distribution Date on which
the Notes are partially prepaid pursuant to Section 4.07, which Distribution
Date shall be the Distribution Date immediately succeeding the date on which the
Funding Period ends in the event that any amount remains on deposit in the
Prefunding Account after giving effect to the sale to the Trust of all Prefunded
Contracts sold to the Trust during the Funding Period, including any acquisition
and conveyance on the date on which the Funding Period ends.

        "MATURITY DATE" means, with respect to any Contract, the date on which
the last scheduled payment of such Contract shall be due and payable as such
date may be extended pursuant to Section 3.02.

                                       -9-

<PAGE>   14

        "MAXIMUM CAPITALIZED INTEREST AMOUNT" means, with respect to each
Distribution Date following a Collection Period during which amounts are on
deposit in the Prefunding Account, an amount equal to the sum of the Note
Interest Distributable Amount (assuming no further reductions in principal on
the Notes) for each remaining Distribution Date during the Funding Period and
for the Distribution Date immediately following the Funding Period, plus the sum
of the fees payable to the Owner Trustee, the Indenture Trustee and the Trust
Agent and the premium payable to the Insurer for each such Distribution Date, in
each case, allocable to the balance in the Prefunding Account on the opening of
business on the first day of the beginning of the month in which the Maximum
Capitalized Interest Amount is being calculated for the Distribution Date in
that same month, on a pro rata basis, minus the earnings to be received by the
Indenture Trustee on behalf of the Trust through February 13, 2001 from
investment of the funds on deposit in the Prefunding Account, assuming that no
additional Prefunded Contracts are conveyed to the Trust and that interest at a
rate of 2.5% per annum is earned on amounts on deposit in the Prefunding
Account.

        "MONTHLY P&I" means, with respect to any Contract, the amount of each
monthly installment of principal and interest payable to the Obligee of such
Contract in accordance with the terms thereof, exclusive of any charges
allocable to the financing of any insurance premium and charges which represent
late payment charges or extension fees.

        "MOODY'S" means Moody's Investors Service, Inc., and its successors in
interest.

        "NET COLLECTIONS" means, with respect to any Distribution Date and the
related Collection Period, the sum of (i) all payments of Monthly P&I, all
partial prepayments, all Full Prepayments, Net Liquidation Proceeds and Net
Insurance Proceeds in each case, collected with respect to the Contracts during
such Collection Period, less partial prepayments of Precomputed Contracts
collected with respect to the Contracts during such Collection Period which are
deposited in the Payahead Account pursuant to Section 4.02(a), (ii) amounts
withdrawn from the Payahead Account pursuant to Section 4.01(b) and deposited in
the Collection Account with respect to such Distribution Date, and (iii) the
aggregate Purchase Amount for Purchased Contracts deposited in or credited to
the Collection Account pursuant to Section 4.02(a) on the Business Day preceding
the Servicer Report Date next preceding such Distribution Date.

        "NET INSURANCE PROCEEDS" means, with respect to any Contract, proceeds
paid by any insurer under a comprehensive and collision insurance policy related
to such Contract (other than funds used for the repair of the related Financed
Vehicle or otherwise released by Onyx to the related Obligor in accordance with
normal servicing procedures), after reimbursement to the Servicer of expenses
recoverable under such policy.

        "NET LIQUIDATION PROCEEDS" means the amount derived by subtracting from
the Liquidation Proceeds of a Contract the related Liquidation Expenses.

        "NET YIELD" means, on any day, the percentage equivalent of (a) four
multiplied by (b) a fraction the numerator of which is equal to (i) the sum of
(x) the aggregate of all interest collected on Contracts during the three
immediately preceding Collection Periods, (y) the investment earnings on amounts
deposited in the Prefunding Account transferred to the Payment Account with
respect to the three immediately preceding Distribution Dates and (z) the
amounts transferred from the Capitalized Interest Account to the Payment Account
with respect to the three immediately preceding Distribution Dates, minus (ii)
the sum of (A) the aggregate outstanding principal balances

                                      -10-

<PAGE>   15

of Contracts which became Liquidated Contracts other than by virtue of a Full
Prepayment during such three Collection Periods (less any Net Liquidation
Proceeds received with respect to such Liquidated Contracts during such three
Collection Periods) and (B) interest paid to the Noteholders and the Servicing
Fees paid to the Servicer during such three Collection Periods, and the
denominator of which is equal to the average of the Pool Balances as of the last
day of each of such three immediately preceding Collection Periods.

        "NOTE" means a Class A-1 Note, a Class A-2 Note, a Class A-3 Note or a
Class A-4 Note, as applicable.

        "NOTE DISTRIBUTABLE AMOUNT" means, with respect to any Distribution
Date, the sum of the Note Principal Distributable Amount and the Note Interest
Distributable Amount for such Distribution Date.

        "NOTE DISTRIBUTION ACCOUNT" means the account established and maintained
as such pursuant to Section 4.01.

        "NOTE FINAL SCHEDULED DISTRIBUTION DATE" means the Class A-1 Final
Scheduled Distribution Date, the Class A-2 Final Scheduled Distribution Date,
the Class A-3 Final Scheduled Distribution Date or the Class A-4 Final Scheduled
Distribution Date, as the case may be.

        "NOTEHOLDER" shall mean any Holder of a Note.

        "NOTE INTEREST CARRYOVER SHORTFALL" means, with respect to any
Distribution Date and a Class of Notes, the excess, if any, of the Note Interest
Distributable Amount for such Class for the immediately preceding Distribution
Date over the amount in respect of interest that is actually deposited in the
Note Distribution Account with respect to such Class on such preceding
Distribution Date, plus, to the extent permitted by applicable law, interest on
the amount of interest due but not paid to Noteholders of such Class on the
preceding Distribution Date at the related Interest Rate for the related
Interest Accrual Period; provided, however, that the Note Interest Carryover
Shortfall for the first Distribution Date shall be zero.

        "NOTE INTEREST DISTRIBUTABLE AMOUNT" means, with respect to any
Distribution Date and a Class of Notes, the sum of (i) an amount equal to the
interest accrued during the related Interest Accrual Period at the related
Interest Rate for such Class of Notes on the outstanding principal amount of
such Class of Notes on the immediately preceding Distribution Date, after giving
effect to all payments of principal to Noteholders of such Class on or prior to
such Distribution Date (or, in the case of the first Distribution Date, on the
original principal amount of such Class of Notes) and (ii) the Note Interest
Carryover Shortfall for such Class of Notes for such Distribution Date.

        "NOTE POOL FACTOR" means, with respect to any Class of Notes as of any
Distribution Date, a six-digit decimal figure equal to the outstanding principal
amount of such Class of Notes (after giving effect to any reductions thereof to
be made on such Distribution Date) divided by the original outstanding principal
amount of such Class of Notes.

        "NOTE PRINCIPAL CARRYOVER SHORTFALL" means, as of the close of business
on any Distribution Date, the excess of the Note Principal Distributable Amount
for such Distribution Date

                                      -11-

<PAGE>   16

over the amount in respect of principal that is actually deposited in the Note
Distribution Account on such Distribution Date.

        "NOTE PRINCIPAL DISTRIBUTABLE AMOUNT" means, with respect to any
Distribution Date, the sum of (i) the Regular Principal Distributable Amount for
such Distribution Date, (ii) the Accelerated Principal Distributable Amount, if
any, for such Distribution Date and (iii) any outstanding Note Principal
Carryover Shortfall for the immediately preceding Distribution Date; provided,
however, that the Note Principal Distributable Amount shall not exceed the
aggregate outstanding principal amount of the Notes. Notwithstanding the
foregoing, the Note Principal Distributable Amount on the Note Final Scheduled
Distribution Date for each Class of Notes shall not be less than the amount that
is necessary to reduce the outstanding principal amount of the related Class of
Notes to zero.

        "NOTE REGISTER" shall have the meaning specified in the Indenture.

        "OBLIGEE" means, with respect to any Contract, the Person to whom an
Obligor is indebted under such Contract.

        "OBLIGOR" means, with respect to any Contract, the purchaser or
co-purchasers of the Financed Vehicle and any other Person who owes payments
under such Contract.

        "OFFICERS' CERTIFICATE" means a certificate signed by the Chairman, the
President or a Vice President, and by the Treasurer, an Assistant Treasurer, the
Controller, an Assistant Controller, the Secretary or an Assistant Secretary of
any Person delivering such certificate and delivered to the Person to whom such
certificate is required to be delivered. In the case of an Officers' Certificate
of the Servicer, at least one of the signing officers must be a Servicing
Officer. Unless otherwise specified, any reference herein to an Officers'
Certificate shall be to an Officers' Certificate of the Servicer.

        "ONYX" means Onyx Acceptance Corporation and its successors in interest.

        "OPINION OF COUNSEL" means a written opinion of counsel (who may be
counsel to the Seller or the Servicer) acceptable to the Indenture Trustee, the
Owner Trustee or the Trust Agent, as the case may be, and the Insurer.

        "ORIGINAL POOL BALANCE" means $400,000,000, which is the sum of (i) the
Principal Balances of the Initial Contracts as of the Initial Cut-Off Date, (ii)
the Principal Balances of the Subsequent Contracts as of the Subsequent Cut-Off
Date, and (iii) the initial deposit in the Prefunding Account.

        "OUTSTANDING" means with respect to a Contract and as of the time of
reference thereto, a Contract that has not reached its Maturity Date, has not
been fully prepaid, has not become a Liquidated Contract and has not been
repurchased pursuant to Section 2.03, 3.07 or 8.01.

        "OUTSTANDING PRINCIPAL BALANCE" means, as of the applicable Cut-Off
Date, (i) with respect to any Precomputed Contract, the amount set forth as the
Outstanding Principal Balance of such Contract on the Schedule of Contracts,
such amount being the total of all unpaid Monthly P&I due on or after the
Cut-Off Date, minus any unearned (or earned but unpaid) interest as of the
applicable

                                      -12-

<PAGE>   17

Cut-Off Date computed in accordance with the Rule of 78's Method or the
Actuarial Method, as applicable, and (ii) with respect to any Simple Interest
Contract, the amount set forth as the Outstanding Principal Balance of such
Contract on the Schedule of Contracts, such amount being the total of all
principal payments due on or after the applicable Cut-Off Date.

        "OWNER TRUSTEE" means Bankers Trust (Delaware), not in its individual
capacity but solely as the Owner Trustee under the Trust Agreement, its
successors in interest and any successor Owner Trustee under the Trust
Agreement.

        "OWNER TRUSTEE CORPORATE TRUST OFFICE" means the principal office of the
Owner Trustee at which at any particular time its corporate trust business shall
be administered, which office at the date of the execution of this Agreement is
located at E.A. Delle Donne Corporate Center, 1011 Centre Road, Suite 200,
Wilmington, Delaware 19805-1266, Attention: Corporate Trust Administration; or
at such other address as the Owner Trustee may designate from time to time by
notice to the Noteholders, the Insurer, the Servicer and the Seller.

        "PAYAHEAD ACCOUNT" means the account established and maintained as such
pursuant to Section 4.01.

        "PAYMENT ACCOUNT" means the account established and maintained as such
pursuant to Section 4.01.

        "PAYING AGENT" means (i) with respect to the Notes, the Person acting as
the "Paying Agent" under the Indenture and (ii) with respect to the Residual
Interest Instruments, the Person acting as the "Paying Agent" under the Trust
Agreement, the Trust Agent or any other Person that meets the eligibility
standards for the Paying Agent specified in the Trust Agreement and is
authorized by the Issuer to make the distributions from the Payment Account,
including distributions in respect of the Residual Interest Instruments on
behalf of the Issuer.

        "PERCENTAGE INTEREST" shall have the meaning specified in Section
4.04(d).

        "PERSON" means a legal person, including any individual, corporation,
estate, partnership, joint venture, association, joint stock company, trust,
unincorporated organization or government or any agency or political subdivision
thereof.

        "POLICY" means the financial guarantee insurance policy for the Notes,
number 33589, dated November 16, 2000 and issued by the Insurer to the Indenture
Trustee, guaranteeing payment of any Policy Claim Amount, the form of which is
attached hereto as Exhibit B.

        "POLICY CLAIM AMOUNT" means, with respect to each Distribution Date, the
sum of (i) the Deficiency Amount for such Distribution Date and (ii) the
Preference Amount for such Distribution Date.

        "POOL BALANCE" as of the time of determination means the sum of (i) the
aggregate of the Principal Balances of the Contracts, exclusive of the Principal
Balances of all Contracts that are not Outstanding at the end of the Collection
Period ending immediately prior to such time of determination and (ii) the
amounts on deposit in the Prefunding Account (exclusive of any investment
earnings), if any.

                                      -13-

<PAGE>   18

        "POTENTIAL PREFERENCE PARTIES" shall have the meaning specified in
Section 4.04(d).

        "PRECOMPUTED CONTRACT" means a Contract as to which, pursuant to the
terms of such Contract, the portion of payments allocable to earned interest and
principal thereunder is determined according to the "Rule of 78's Method" or the
"Actuarial Method".

        "PREFERENCE AMOUNT" means any amount previously distributed to a Holder
in respect of the Notes that is recoverable and sought to be recovered as a
voidable preference by a trustee in bankruptcy with respect to Onyx, the Seller
or the Trust pursuant to the United Stated Bankruptcy Code (11 U.S.C.), as
amended from time to time, in accordance with a final nonappealable order of a
court having competent jurisdiction.

        "PREFERENCE CLAIM" shall have the meaning specified in Section 7.05.

        "PREFUNDED AMOUNT" means $75,341,420.08, the initial deposit into the
Prefunding Account.

        "PREFUNDED CONTRACTS" means the Contracts which are transferred by the
Seller to the Issuer on each Prefunding Transfer Date pursuant to this Agreement
and are identified on the schedule attached to the Transfer Certificate
delivered to the Trust, the Indenture Trustee and the Insurer on the Business
Day immediately preceding the related Prefunding Transfer Date.

        "PREFUNDING ACCOUNT" means the account established as such pursuant to
Section 4.01 and maintained pursuant to Section 4.07.

        "PREFUNDING CLOSING DATE" means the last day of the Funding Period, or
if such day is not a Business Day, the following Business Day.

        "PREFUNDING CLOSING DATE CERTIFICATE" means the certificate of an
officer of the Seller delivered in connection with the Prefunding Closing Date,
substantially in the form attached hereto as Exhibit C-2.

        "PREFUNDING CUT-OFF DATE" means the cut-off date specified in the
Transfer Certificate with respect to the Prefunded Contracts transferred on the
related Prefunding Transfer Date.

        "PREFUNDING TRANSFER DATE" means each day on which the Seller conveys
Prefunded Contracts to the Trust.

        "PREMIUM" shall have the meaning specified in the Insurance Agreement.

        "PRINCIPAL BALANCE" means, with respect to a Contract, as of any date,
the Amount Financed under the terms of such Contract minus (i) that portion of
Monthly P&I in respect of such Contract received on or prior to the end of the
most recently ended Collection Period and allocable to principal as determined
by the Servicer and (ii) any Cram Down Loss incurred in respect of such Contract
on or prior to the end of the most recently ended Collection Period. For
purposes of this definition, allocations of Monthly P&I on each Contract by the
Servicer shall be made in accordance with the terms of such Contract, in the
case of a Simple Interest Contract or an Actuarial Contract, or in accordance
with the Recomputed Actuarial Method, in the case of a Rule of 78's Contract.

                                      -14-

<PAGE>   19

        "PURCHASE AGREEMENT" means the Amended and Restated Sale and Servicing
Agreement dated as of September 4, 1998 between Onyx, as seller, and the Seller,
as purchaser, as such agreement may have been or may be modified, supplemented
or amended from time to time.

        "PURCHASE AMOUNT" means, with respect to a Purchased Contract, the
Principal Balance of such Contract as of the date of purchase of such Contract
plus interest on such Contract through the date of such purchase, to the extent
not previously collected.

        "PURCHASED CONTRACT" means a Contract that (i) has been purchased by the
Servicer or the Seller because of certain material defects in documents related
to such Contract or certain breaches of representations and warranties regarding
such Contract made by the Seller in this Agreement that materially and adversely
affect the interests of the Noteholders or the Insurer, (ii) has been purchased
by the Servicer because of certain breaches of servicing covenants or (iii) has
been purchased by the Servicer in the event of an optional purchase of all of
the Contracts pursuant to Section 8.01.

        "RATING AGENCIES" means Moody's and Standard & Poor's.

        "RECOMPUTED ACTUARIAL METHOD" means a method of accounting pursuant to
which each payment of Monthly P&I due on a Rule of 78's Contract will be deemed
to consist of interest equal to the product of 1/12 of the Recomputed Yield for
such Contract and the Principal Balance of the Contract as of the preceding Due
Date for such Contract and of principal to the extent of the remainder of such
scheduled installment of Monthly P&I, which will cause the Outstanding Principal
Balance as of the related Cut-Off Date to be amortized in full at the Recomputed
Yield.

        "RECOMPUTED YIELD" for any Rule of 78's Contract means the per annum
rate determined as of the related Cut-Off Date, such that the net present value
of the remaining scheduled payments due on such Contract, discounted at such
rate from the Due Date for each such scheduled payment to the Due Date for such
Contract immediately preceding the related Cut-Off Date, will equal the
Outstanding Principal Balance.

        "RECORD DATE" means, with respect to a Class of Notes and any
Distribution Date, the Business Day immediately preceding such Distribution Date
or, if Definitive Notes are issued, the last day of the immediately preceding
calendar month.

        "REGISTRAR OF TITLES" means the agency, department or office having the
responsibility for maintaining records of titles to motor vehicles and issuing
documents evidencing such titles in the jurisdiction in which a particular
Financed Vehicle is registered.

        "REGULAR PRINCIPAL DISTRIBUTABLE AMOUNT" means, with respect to any
Distribution Date, the amount equal to the sum of the following amounts with
respect to the related Collection Period: (i) collections received on Contracts
(other than Liquidated Contracts and Purchased Contracts) allocable to principal
as determined by the Servicer, including full and partial principal prepayments
(other than partial prepayments on Precomputed Contracts representing amounts
not due in such Collection Period which will be deposited into the Payahead
Account in accordance with this Agreement), (ii) the Principal Balance
(immediately prior to the reduction thereof to zero as provided in the
definition of "Liquidated Contract") of all Contracts (other than Purchased
Contracts) that became Liquidated Contracts during the related Collection
Period, (iii) the Principal Balance of all

                                      -15-

<PAGE>   20

Contracts that became Purchased Contracts as of the immediately preceding Record
Date and (iv) the aggregate amount of Cram Down Losses incurred during the
related Collection Period.

        "REPAYMENT AMOUNT" shall have the meaning specified in the Insurance
Agreement.

        "RESIDUAL INTEREST" means the residual interest in the Trust, which
represents the right to the amount remaining, if any, after all prior
distributions have been made under this Agreement, the Indenture and the Trust
Agreement on each Distribution Date and certain other rights to receive amounts
hereunder and under the Trust Agreement.

        "RESIDUAL INTEREST INSTRUMENT" shall have the meaning specified in the
Trust Agreement.

        "RESIDUAL INTERESTHOLDER" means each Person in whose name a Residual
Interest Instrument is registered in the Certificate Register.

        "RESPONSIBLE OFFICER" means any officer of the Indenture Trustee within
the Corporate Trust Office including any vice president, assistant vice
president, assistant treasurer, assistant secretary or any other officer of the
Indenture Trustee customarily performing functions similar to those performed by
any of the above designated officers with direct responsibility for the
administration of this Agreement.

        "RULE OF 78'S CONTRACT" means a Contract pursuant to which the
allocation between interest and principal is calculated using the Rule of 78's
Method.

        "RULE OF 78'S METHOD" means the method of allocating principal and
interest payments on a Contract whereby the amount of each payment allocable to
interest on a Contract is determined by multiplying the total amount of add-on
interest payable over the term of the Contract by a fraction, the denominator of
which is equal to the sum of a series of numbers representing the total number
of monthly payments due under the Contract and the numerator of which is the
number of payments remaining before giving effect to the payment to which the
fraction is being applied.

        "SCHEDULE OF CONTRACTS" means the list or lists of Funded Contracts
attached as Schedule I-A and Schedule I-B to this Agreement and each list of
Prefunded Contracts delivered to the Indenture Trustee, the Issuer and the
Insurer on each Prefunding Transfer Date and identified on Schedule I to the
related Transfer Certificate, which Contracts are being transferred to the Trust
as part of the Trust Property, together with supplemental data regarding the
contracts verified by the Servicer. The Schedule of Contracts attached hereto as
Schedules I-A and I-B, together with the initial deposit into the Prefunding
Account, comprises the Original Pool Balance. The following information with
respect to each Funded Contract is set forth on Schedule I-A and Schedule I-B in
columns, and any supplement to the Schedule of Contracts for Prefunded Contracts
will present the information in the same format:

               Contract Number ("Account")
               Date of Origination ("Discount Date")
               Maturity Date ("Maturity")
               Monthly P&I ("Payment")
               Original Principal Balance ("Amount Financed")
               Outstanding Principal Balance ("Net Balance")

                                      -16-

<PAGE>   21

               Annual Percentage Rate ("APR")

In addition, the information contained in the Schedule of Contracts shall also
be contained on a computer disk or tape that shall be delivered by the Servicer
to the Indenture Trustee not later than (i) the 5th Business Day following the
Closing Date, with respect to the Funded Contracts and (ii) the 5th Business Day
following the related Prefunding Transfer Date, with respect to the Prefunded
Contracts.

        "SELLER" means Onyx Acceptance Financial Corporation, in its capacity as
the Seller of the Contracts under this Agreement, and each successor thereto (in
the same capacity) pursuant to Section 5.02.

        "SERVICER" means Onyx in its capacity as the servicer of the Contracts
under Section 3.01, and, in each case upon succession in accordance herewith,
each successor servicer in the same capacity pursuant to Section 3.01 and each
successor servicer pursuant to Section 7.02.

        "SERVICER DEFAULT" means an event specified in Section 7.01.

        "SERVICER REPORT DATE" means, with respect to any Distribution Date, the
fifth Business Day prior to such Distribution Date.

        "SERVICING FEE" means, as to any Distribution Date, the fee payable to
the Servicer for services rendered during the Collection Period ending
immediately prior to such Distribution Date, which shall be an amount equal to
the product of one-twelfth of 1% per annum multiplied by the Pool Balance
(excluding amounts on deposit in the Prefunding Account) as of the end of the
Collection Period preceding the related Collection Period.

        "SERVICING OFFICER" means any officer of the Servicer involved in, or
responsible for, the administration and servicing of the Contracts whose name
appears on a list of servicing officers furnished to the Indenture Trustee by
the Servicer pursuant to Section 3.01, as such list may be amended or
supplemented from time to time.

        "SERVICING STANDARDS" means at any time the quality of the Servicer's
performance with respect to (i) compliance with the terms of this Agreement and
(ii) adequacy, measured in accordance with industry standards and current and
historical standards of the Servicer, in respect of the servicing of all
Contracts serviced by the Servicer, regardless of whether any such Contract is
owned by the Servicer or otherwise.

        "SIMPLE INTEREST CONTRACT" means a Contract as to which the portion of
payments allocable to earned interest and principal thereunder is determined
according to the Simple Interest Method. For such Contracts, interest accrued as
of the Due Date is paid first, and then the remaining payment is applied to the
unpaid principal balance. Accordingly, if an Obligor pays the fixed monthly
installment in advance of the Due Date, the portion of the payment allocable to
interest for the period since the preceding payment will be less than it would
be if the payment were made on the Due Date, and the portion of the payment
allocable to reduce the principal balance will be correspondingly greater.
Conversely, if an Obligor pays the fixed monthly installment after its Due Date,
the portion of the payment allocable to interest for the period since the
preceding payment will be greater than it would be if the payment were made on
the Due Date, and the portion of the payment allocable to

                                      -17-

<PAGE>   22

reduce the principal balance will be correspondingly smaller. When necessary, an
adjustment will be made at the maturity of the Contract to the scheduled final
payment to reflect the larger or smaller, as the case may be, allocations of
payments to the amount financed under the Contract as a result of early or late
payments, as the case may be.

        "SIMPLE INTEREST METHOD" means the method for calculating interest on a
Contract whereby interest due is calculated each day based on the actual
principal balance of the Contract on that day.

        "SPREAD ACCOUNT" means the account established and maintained as such
pursuant to Section 4.01.

        "SPREAD ACCOUNT MAXIMUM" shall have the meaning set forth in the
Insurance Agreement.

        "STANDARD & POOR'S" means Standard & Poor's Ratings Services, a division
of The McGraw-Hill Companies, Inc., and its successors in interest.

        "SUBSEQUENT CONTRACTS" means the Contracts designated as such in
Schedule I-B attached hereto, which have an aggregate Outstanding Principal
Balance of $49,564,336.11.

        "SUBSEQUENT CUT-OFF DATE" means November 13, 2000.

        "SUCCESSOR CUSTODIAN" shall have the meaning set forth in Section
2.04(b).

        "TITLE DOCUMENT" means, with respect to any Financed Vehicle, the
certificate of title for, or other evidence of ownership of, such Financed
Vehicle issued by the Registrar of Titles in the jurisdiction in which such
Financed Vehicle is registered. For Financed Vehicles registered in the State of
California, the Title Document may consist of electronic evidence of ownership
on the Electronic Lien and Title system of the California Department of Motor
Vehicles.

        "TRANSFER CERTIFICATE" means the certificate of an officer of the Seller
delivered in connection with the delivery of any Prefunded Contracts on the
Business Day immediately preceding a Prefunding Transfer Date, substantially in
the form attached hereto as Exhibit C-1.

        "TRUST" means the Issuer.

        "TRUST ACCOUNT PROPERTY" means the Trust Accounts, all amounts and
investments held from time to time in any Trust Account (whether in the form of
deposit accounts, physical property, book-entry securities, uncertificated
securities or otherwise) and all proceeds of the foregoing.

        "TRUST ACCOUNTS" shall have the meaning specified in Section 4.01(a).

        "TRUST AGENT" means The Chase Manhattan Bank, not in its individual
capacity but solely as the Trust Agent under the Trust Agreement and this
Agreement acting on behalf of the Owner Trustee, its successors in interest, and
any successor Trust Agent under such agreements.

        "TRUST AGENT OFFICE" means the principal office of the Trust Agent,
which office at the date of the execution of this Agreement is located at 450 W.
33rd Street, 14th Floor, New York, New York 10001-2697, Attention: Capital
Market Fiduciary Services; or at such other address as the

                                      -18-

<PAGE>   23

Trust Agent may designate from time to time by notice to the Noteholders, the
Insurer, the Servicer and the Seller.

        "TRUST AGREEMENT" means the Trust Agreement, dated as of November 1,
2000, among the Depositor, the Owner Trustee and the Trust Agent.

        "TRUST PROPERTY" has the meaning set forth in Section 2.01(b) hereof.

        "UCC" means the Uniform Commercial Code as in effect in the applicable
jurisdiction.

        SECTION 1.02. USAGE OF TERMS.

        With respect to all terms in this Agreement, the singular includes the
plural and the plural the singular; words importing any gender include the other
genders; references to "writing" include printing, typing, lithography and other
means of reproducing words in a visible form; references to agreements and other
contractual instruments include all amendments, modifications and supplements
thereto or any changes therein entered into in accordance with their respective
terms and not prohibited by this Agreement; references to Persons include their
permitted successors and assigns; and the term "including" means "including
without limitation."

        SECTION 1.03. SECTION REFERENCES.

        All section references, unless otherwise indicated, shall be to Sections
in this Agreement.

        SECTION 1.04. CALCULATIONS.

        Interest on the Notes will be calculated on the basis of a 360-day year
of twelve 30-day months, except that interest on the Class A-1 Notes will be
calculated on the basis of a 360-day year and the actual number of days in the
related Interest Accrual Period. Collections of interest on Rule of 78's
Contracts shall be calculated as if such Contracts were actuarial contracts the
scheduled principal balances of which are the Principal Balances thereof, and
collections of interest on Simple Interest Contracts and Actuarial Contracts
will be calculated in accordance with the terms thereof.

        SECTION 1.05. ACCOUNTING TERMS.

        All accounting terms used but not specifically defined herein shall be
construed in accordance with generally accepted accounting principles in the
United States of America.

                                   ARTICLE II

                            CONVEYANCE OF CONTRACTS;
                  REPRESENTATIONS AND WARRANTIES OF THE SELLER

                                      -19-

<PAGE>   24

        SECTION 2.01. CONVEYANCE OF CONTRACTS.

        (a) In consideration of the Issuer's delivery of authenticated Notes, in
an aggregate amount equal to $400,000,000, to or upon the order of the Seller,
effective upon the Closing Date, the Seller hereby sells, grants, transfers,
conveys and assigns to the Issuer, without recourse (except as expressly
provided in Section 2.03 hereof), all of the right, title and interest of the
Seller in, to and under:

                      (i)    the Funded Contracts listed in the Schedule of
                             Contracts;

                      (ii)   all monies received under the Funded Contracts on
                             or after the related Cut-Off Date;

                      (iii)  all Net Liquidation Proceeds and Net Insurance
                             Proceeds with respect to any Financed Vehicle to
                             which a Funded Contract relates received on or
                             after the related Cut-Off Date;

                      (iv)   the Contract Documents and Contract Files relating
                             to the Funded Contracts (except the Contract
                             Documents and Contract Files for Funded Contracts
                             which have been the subject of a Full Prepayment
                             received on or after the related Cut-Off Date but
                             no later than two Business Days prior to the
                             Closing Date, in lieu of which the Seller shall
                             have deposited in or credited to the Collection
                             Account on or prior to the Closing Date an amount
                             equal to such Full Prepayment);

                      (v)    the Trust Accounts and all amounts, financial
                             assets and investment property held therein or
                             credited thereto, including, if applicable, all
                             Eligible Investments credited thereto (but
                             excluding (A) the Payahead Account and all amounts,
                             financial assets and investment property held
                             therein or credited thereto, including all Eligible
                             Investments credited thereto and (B) investment
                             income credited to the Collection Account);

                      (vi)   the right of the Seller, as purchaser under the
                             Purchase Agreement, to cause Onyx as seller
                             thereunder to repurchase Funded Contracts listed in
                             the Schedule of Contracts under certain
                             circumstances;

                      (vii)  any and all security interests of the Seller in the
                             Financed Vehicles and the rights to receive
                             proceeds from claims on certain insurance policies
                             covering the Financed Vehicles or the individual
                             Obligors under each related Funded Contract;

                      (viii) the Seller's right to proceeds under the Blanket
                             Insurance Policy with respect to the Funded
                             Contracts; and

                      (ix)   all proceeds in any way delivered with respect to
                             the foregoing, all rights to payments with respect
                             to the foregoing and all rights to enforce the
                             foregoing.

                                      -20-

<PAGE>   25

        (b) Subject to the conditions set forth in Section 2.01(c), in
consideration of the Issuer's delivery of authenticated Notes, in an aggregate
amount equal to $400,000,000, to or upon the order of the Seller, effective upon
the Closing Date, the Seller hereby sells, grants, transfers, conveys and
assigns to the Issuer, without recourse (except as expressly provided in Section
2.03 hereof) effective upon delivery to the Issuer on the related Prefunding
Transfer Date against payment therefor from the Prefunding Account in accordance
Section 4.07(b), all of the right, title and interest of the Seller in, to and
under:

                      (i)    all Prefunded Contracts listed on each Transfer
                             Certificate;

                      (ii)   all monies received under the Prefunded Contracts
                             on or after the related Prefunding Cut-Off Date;

                      (iii)  all Net Liquidation Proceeds and Net Insurance
                             Proceeds with respect to any Financed Vehicle to
                             which a Prefunded Contract relates received on or
                             after the related Prefunding Cut-Off Date;

                      (iv)   the Contract Documents and Contract Files relating
                             to the Prefunded Contracts;

                      (v)    the right of the Seller, as purchaser under the
                             Purchase Agreement, to cause Onyx as seller
                             thereunder to repurchase Prefunded Contracts listed
                             on any Transfer Certificate under certain
                             circumstances;

                      (vi)   any and all security interests of the Seller in the
                             related Financed Vehicles and the rights to receive
                             proceeds from claims on certain insurance policies
                             covering such Financed Vehicles or the individual
                             Obligors under each related Prefunded Contract;

                      (vii)  the Seller's right to proceeds under the Blanket
                             Insurance Policy with respect to the Prefunded
                             Contracts; and

                      (viii) all proceeds in any way delivered with respect to
                             the foregoing, all rights to payments with respect
                             to the foregoing and all rights to enforce the
                             foregoing.

        The foregoing items of property listed in Sections 2.01(a) and (b),
together with the rights of the Indenture Trustee under the Policy, are
collectively referred to as the "TRUST PROPERTY". In addition, on or prior to
the Closing Date, the Seller shall cause the Insurer to deliver the Policy to
the Indenture Trustee for the benefit of the Noteholders.

        It is the intention of the Seller and the Issuer that the assignment and
transfer herein contemplated constitute (and shall be construed and treated for
all purposes as) a true and complete sale of the Trust Property (other than the
Spread Account and the Policy), conveying good title thereto free and clear of
any liens and encumbrances, from the Seller to the Issuer. However, in the event
that such conveyance is deemed to be a pledge to secure a loan (in spite of the
express intent of the parties hereto that this conveyance constitutes, and shall
be construed and treated for all

                                      -21-

<PAGE>   26

purposes, as a true and complete sale), the Seller hereby grants to the Issuer,
for the benefit of the Noteholders and the Insurer, a first priority perfected
security interest in all of the Seller's right, title and interest in the Trust
Property whether now existing or hereafter created and all proceeds of the
foregoing to secure the loan deemed to be made in connection with such pledge
and, in such event, this Agreement shall constitute a security agreement under
applicable law.

        (c) The sale and assignment of the Prefunded Contracts and the other
property and rights related thereto described in Section 2.01(b) shall be
subject to the satisfaction of each of the following conditions, as well as the
conditions set forth in Section 4.08, as of the related Prefunding Transfer
Date, as applicable:

                      (i)    the Seller shall have delivered to the Custodian,
                             on behalf of the Issuer, the Prefunded Contracts,
                             and the Seller shall have delivered to the Issuer,
                             the Indenture Trustee and the Insurer, on the
                             Business Day immediately preceding the related
                             Prefunding Transfer Date, a duly executed Transfer
                             Certificate, substantially in the form of Exhibit
                             C-1;

                      (ii)   the Servicer and the Seller shall certify to the
                             Indenture Trustee and the Insurer that, as of the
                             Prefunding Transfer Date, the Servicer and the
                             Seller, respectively, were not insolvent nor were
                             they made insolvent by such transfer nor were they
                             aware of any such pending insolvency;

                      (iii)  the Seller shall certify to the Indenture Trustee
                             and the Insurer that the addition of such Prefunded
                             Contracts will not result in a material adverse tax
                             consequence to the Issuer or the Noteholders;

                      (iv)   the Funding Period shall not have terminated;

                      (v)    the Seller and the Servicer shall certify to the
                             Indenture Trustee and the Insurer that no selection
                             procedures believed by the Seller or the Servicer
                             to be adverse to the interests of the Noteholders
                             or the Insurer shall have been utilized in
                             selecting the Prefunded Contracts;

                      (vi)   the Seller and the Insurer shall not have been
                             advised by either Rating Agency on or before the
                             Business Day immediately preceding such Prefunding
                             Transfer Date that the conveyance of the Prefunded
                             Contracts would result in a qualification,
                             modification or withdrawal of its then current
                             rating of the Notes without regard to the Policy;

                      (vii)  the weighted average APR (using the Recomputed
                             Yield for the Rule of 78's Contracts) of the
                             Contracts (after giving effect to the purchase of
                             the related Prefunded Contracts) shall not be less
                             than 13.85%;

                      (viii) less than 20% of the Prefunded Contracts
                             transferred by the Seller to the Issuer since the
                             Closing Date, including all Prefunded Contracts
                             being transferred on such Prefunding Transfer Date,
                             shall have an

                                      -22-

<PAGE>   27

                             original term to maturity of more than 60 months
                             and the weighted average remaining term of all
                             Contracts (including the Prefunded Contracts) as of
                             such Prefunding Transfer Date shall not be greater
                             than 59 months;

                      (ix)   if the balance in the Prefunding Account prior to
                             such Prefunding Transfer Date exceeds $30,000,000,
                             the aggregate Outstanding Principal Balance, as of
                             the related Prefunding Cut-Off Date, of the
                             Prefunded Contracts to be conveyed by the Seller to
                             the Issuer on such Prefunding Transfer Date shall
                             equal or exceed $10,000,000 and the Insurer shall
                             have consented to such transfer;

                      (x)    at least three Business Days prior to each
                             Prefunding Transfer Date, the Seller shall have
                             delivered to the Rating Agencies and the Insurer
                             pool stratification data (including data with
                             respect to when the first scheduled payment is due
                             under each such Prefunded Contract) relating to the
                             Prefunded Contracts to be conveyed by the Seller to
                             the Issuer on such Prefunding Transfer Date, in the
                             form of stratification data delivered to the Rating
                             Agencies and the Insurer with respect to the Funded
                             Contracts, and, as of the related Prefunding
                             Cut-Off Date, shall have certified that the
                             information contained therein is true and correct;
                             and

                      (xi)   The first scheduled monthly payment for at least
                             50% of the Prefunded Contracts (by Outstanding
                             Principal Balance as of the related Prefunding
                             Cut-Off Date) shall be due on or before December
                             31, 2000.

        (d) As of the Closing Date, the Issuer acknowledges the conveyance to it
of the Trust Property from the Seller, including all right, title and interest
of the Seller in and to the Trust Property, receipt of which is hereby
acknowledged by the Issuer. Concurrently with such delivery and in exchange
therefor, the Issuer has pledged to the Indenture Trustee, for the benefit of
the Noteholders and the Insurer, the Trust Property and the Indenture Trustee,
pursuant to the written instructions of the Issuer, has executed and caused to
be authenticated and delivered the Notes to the Seller or its designee, upon the
order of the Issuer.

        (e) In connection with the sale of the Contracts pursuant to the
Purchase Agreement, Onyx has filed with the office of the Secretary of State of
the State of California a UCC-1 financing statement naming Onyx as debtor,
naming the Seller as secured party and including the Contracts in the
description of the collateral. In connection with the sale of the Contracts
pursuant to this Agreement, the Seller has filed or caused to be filed with the
Secretary of State of the State of California a UCC-1 financing statement naming
the Seller as debtor, naming the Issuer as secured party, naming the Indenture
Trustee, on behalf of the Noteholders, as assignee, and including the Contracts
in the description of the collateral. In connection with the pledge of the
Contracts pursuant to the Indenture, the Trust has filed with the offices of the
Secretary of State of the State of Delaware UCC-1 financing statements naming
the Trust as debtor and the Indenture Trustee, on behalf of the Noteholders and
the Insurer, as secured party. The grant of a security interest to the Indenture
Trustee and the rights of the Indenture Trustee in the Contracts shall be
governed by the Indenture.

                                      -23-

<PAGE>   28

        The Seller shall have caused UCC-2 termination statements to have been
filed with the office of Secretary of State of the State of California
terminating any effective UCC-1 financing statements with respect to any
outstanding security interests in the Contracts.

        (f) From time to time, the Servicer shall cause to be taken such actions
as are necessary to continue the perfection of the respective interests of the
Trust and the Indenture Trustee in the Contracts and to continue the first
priority security interest of the Indenture Trustee in the Financed Vehicles and
their proceeds (other than, as to such priority, any statutory lien arising by
operation of law after the Closing Date which is prior to such interest),
including, without limitation, the filing of financing statements, amendments
thereto or continuation statements and the making of notations on records or
documents of title.

        (g) If any change in the name, identity or corporate structure of the
Seller or Onyx or the relocation of the chief executive office of either of them
would make any financing or continuation statement or notice of lien filed under
this Agreement or the other Basic Documents misleading within the meaning of
applicable provisions of the UCC or any title statute, the Servicer, within the
time period required by applicable law, shall file such financing statements or
amendments as may be required to preserve and protect the interests of the
Trust, the Indenture Trustee, the Noteholders and the Insurer in the Contracts,
the related Financed Vehicles and the proceeds thereof. Promptly thereafter, the
Servicer shall deliver to the Trust, the Indenture Trustee and the Insurer an
Opinion of Counsel stating that, in the opinion of such counsel, all financing
statements or amendments necessary fully to preserve and protect the interests
of the Trust, the Indenture Trustee, the Noteholders and the Insurer in the
Contracts, the related Financed Vehicles and the proceeds thereof have been
filed, and reciting the details of such filings.

        (h) During the term of this Agreement, the Seller and Onyx shall each
maintain its chief executive office in one of the states of the United States.

        (i) The Servicer shall pay all reasonable costs and disbursements in
connection with the perfection and the maintenance of perfection, as against all
third parties, of the Indenture Trustee's right, title and interest in and to
the Contracts and in connection with maintaining the first priority security
interest (subject to the security interest of the Insurer pursuant to the
Insurance Agreement) in the Financed Vehicles and the proceeds thereof.

        (j) On the Prefunding Closing Date, the Seller shall:

                      (i)    deliver a certificate from each secured creditor of
                             the Seller confirming that such creditor has no
                             claim of any security interest in any of the
                             Prefunded Contracts transferred during the Funding
                             Period;

                      (ii)   deliver to each Rating Agency, the Insurer and the
                             Indenture Trustee a Prefunding Closing Date
                             Certificate;

                      (iii)  deliver to each Rating Agency, the Insurer and the
                             Indenture Trustee an Opinion of Counsel with
                             respect to the absence of negative tax consequences
                             to the Trust, the characterization of the transfer
                             of the

                                      -24-

<PAGE>   29

                             Prefunded Contracts and the perfection of the
                             Indenture Trustee's interest on behalf of the
                             Noteholders;

                      (iv)   deliver to each Rating Agency, the Insurer and the
                             Indenture Trustee with respect to any state (other
                             than California) in which 10% or more of the
                             Contracts (including the Prefunded Contracts), by
                             Outstanding Principal Balance, were originated, an
                             opinion with respect to the perfection of the
                             security interest of the Indenture Trustee in the
                             Financed Vehicles securing the Contracts originated
                             in such state; and

                      (v)    deliver to the Insurer an Opinion of Counsel to the
                             effect that Onyx is duly qualified as a foreign
                             corporation to do business, and is in good
                             standing, in each of the states in which Prefunded
                             Contracts have been originated.

        Failure to comply with any of the conditions set forth in this Section
2.01(j) on the Prefunding Closing Date shall be deemed to be a breach of a
representation and warranty with respect to each of the Prefunded Contracts to
which such failed conditions relate as of the Prefunding Closing Date.

        SECTION 2.02. REPRESENTATIONS AND WARRANTIES OF THE SELLER.

        The Seller makes the following representations and warranties on which
(i) the Issuer is deemed to have relied in acquiring the Contracts and (ii) the
Insurer is deemed to have relied in issuing the Policy; provided such
representations and warranties speak as of the execution and delivery of this
Agreement and as of the Closing Date with respect to Sections 2.02(a), (b) and
(c), and as of each Prefunding Transfer Date (with respect to the Prefunded
Contracts conveyed to the Trust on such date) with respect to Sections 2.02(a)
and (d), but shall survive the sale, transfer and assignment of the Contracts to
the Issuer and the pledge thereof to the Indenture Trustee pursuant to the
Indenture.

        (a) As to the Seller:

                      (i)    The Seller is duly organized and validly existing
                             as a corporation organized and existing and in good
                             standing under the laws of the State of Delaware,
                             with power and authority to own its properties and
                             to conduct its business and had at all relevant
                             times, and has, power, authority, and legal right
                             to originate or acquire and own the Contracts.

                      (ii)   The Seller is duly qualified to do business as a
                             foreign corporation in good standing, and shall
                             have obtained all necessary licenses and approvals
                             in all jurisdictions in which the ownership or
                             lease of property or the conduct of its business
                             requires such qualifications.

                      (iii)  The Seller has the power and authority to execute
                             and deliver this Agreement and to carry out its
                             terms; the Seller has full power and

                                      -25-

<PAGE>   30

                             authority to sell and assign the property to be
                             sold and assigned to and deposited with the Issuer
                             and has duly authorized such sale and assignment to
                             the Issuer by all necessary corporate action; and
                             the execution, delivery, and performance of this
                             Agreement has been duly authorized by the Seller by
                             all necessary corporate action.

                      (iv)   This Agreement constitutes (A) a valid sale,
                             transfer, and assignment of the Contracts,
                             enforceable against creditors of and purchasers
                             from the Seller and (B) a legal, valid, and binding
                             obligation of the Seller enforceable in accordance
                             with its terms, except as such enforceability may
                             be limited by bankruptcy, insolvency,
                             reorganization, or other similar laws affecting the
                             enforcement of creditors' rights in general and by
                             general principles of equity, regardless of whether
                             such enforceability shall be considered in a
                             proceeding in equity or at law.

                      (v)    The consummation of the transactions contemplated
                             by this Agreement and the fulfillment of the terms
                             hereof shall not conflict with, result in any
                             breach of any of the terms and provisions of, nor
                             constitute (with or without notice or lapse of
                             time) a default under, the certificate of
                             incorporation or bylaws of the Seller, or any
                             indenture, agreement, or other instrument to which
                             the Seller is a party or by which it shall be
                             bound; nor result in the creation or imposition of
                             any Lien upon any of the properties of the Seller
                             pursuant to the terms of any such indenture,
                             agreement, or other instrument (other than pursuant
                             to the Basic Documents to which the Seller is a
                             party); nor violate any law or any order, rule, or
                             regulation applicable to the Seller of any court or
                             of any federal or state regulatory body,
                             administrative agency, or other governmental
                             instrumentality having jurisdiction over the Seller
                             or its properties.

                      (vi)   To the Seller's best knowledge after due inquiry,
                             there are no proceedings or investigations pending,
                             or threatened, before any court, regulatory body,
                             administrative agency, or other governmental
                             instrumentality having jurisdiction over the Seller
                             or its properties: (A) asserting the invalidity of
                             this Agreement, the Notes, (B) seeking to prevent
                             the issuance of the Notes or the consummation of
                             any of the transactions contemplated by this
                             Agreement, (C) seeking any determination or ruling
                             that might materially and adversely affect the
                             performance by the Seller of its obligations under,
                             or the validity or enforceability of, this
                             Agreement, the Notes, or (D) naming the Seller
                             which might adversely affect the federal income tax
                             attributes of the Notes.

        (b) As to each Funded Contract (except as noted below as being
applicable only to either Precomputed Contracts or Simple Interest Contracts):

                                      -26-

<PAGE>   31

                      (i)    The information pertaining to such Contract set
                             forth in the related Schedule of Contracts was true
                             and correct in all material respects at the Closing
                             Date.

                      (ii)   As of the Closing Date, such Contract was secured
                             by a valid and enforceable first priority security
                             interest in favor of Onyx in the related Financed
                             Vehicle, and such security interest has been duly
                             perfected and is prior to all other liens upon and
                             security interests in such Financed Vehicle which
                             now exist or may hereafter arise or be created
                             (except, as to priority, for any lien for unpaid
                             taxes or unpaid storage or repair charges which may
                             arise after the Closing Date in accordance with the
                             UCC); such security interest is assignable, had
                             been assigned by Onyx to the Seller pursuant to the
                             Purchase Agreement, and, as of the Closing Date,
                             has been assigned by the Seller to the Issuer
                             pursuant to Section 2.01(a) hereof.

                      (iii)  (A) If the related Contract was originated in a
                             state in which notation of a security interest on
                             the Title Document (or in the electronic title
                             records) is required or permitted to perfect the
                             security interest in the related Financed Vehicle,
                             the Title Document or the electronic title records
                             for such Financed Vehicle shows, or, if a new or
                             replacement Title Document is being applied for
                             with respect to such Financed Vehicle, the Title
                             Document will be received within 180 days of the
                             Closing Date and will show, Onyx named as the
                             original secured party under the related Contract
                             as the holder of a first priority security interest
                             in such Financed Vehicle, and (B) if the related
                             Contract was originated in a state in which the
                             filing of a financing statement under the UCC is
                             required to perfect a security interest in motor
                             vehicles, such filings or recordings have been duly
                             made and show Onyx named as the original secured
                             party under the related Contract, and in either
                             case, the Indenture Trustee on behalf of the
                             Noteholders and the Insurer has the same rights as
                             such secured party has or would have (if such
                             secured party were still the owner of such
                             Contract) against all parties claiming an interest
                             in such Financed Vehicle. With respect to each
                             Contract for which the Title Document has not yet
                             been returned from the Registrar of Titles (or
                             evidenced in the electronic title records), Onyx
                             has written evidence that such Title Documents
                             showing Onyx as first lienholder have been applied
                             for.

                      (iv)   As of the Closing Date, the Seller had good and
                             marketable title to and was the sole owner of each
                             such Contract to be transferred to the Issuer
                             pursuant to Section 2.01 free of liens, claims,
                             encumbrances and rights of others and, upon
                             transfer of such Contract to the Issuer pursuant to
                             Section 2.01, the Issuer will have good and
                             marketable title to, will have a first priority
                             perfected security interest in and will be the sole
                             owner of such Contract free of liens, encumbrances
                             and rights of others.

                                      -27-

<PAGE>   32

                      (v)    As of the related Cut-Off Date, the most recent
                             scheduled payment due on each such Contract had
                             been made or was not delinquent more than 30 days
                             and, to the best of the Seller's knowledge, all
                             payments on the Contract were made by the related
                             Obligors.

                      (vi)   As of the Closing Date, there is no lien against
                             the related Financed Vehicle for delinquent taxes.

                      (vii)  As of the Closing Date, there is no right of
                             rescission, offset, defense or counterclaim to the
                             obligation of the related Obligor(s) to pay the
                             unpaid principal or interest due under such
                             Contract; the operation of the terms of such
                             Contract or the exercise of any right thereunder
                             will not render such Contract unenforceable in
                             whole or in part or subject such Contract to any
                             right of rescission, offset, defense or
                             counterclaim, and the Seller has no knowledge that
                             such right of rescission, offset, defense or
                             counterclaim has been asserted or threatened.

                      (viii) As of the Closing Date, to the best of the Seller's
                             knowledge, there are no liens or claims which have
                             been filed, including liens for work, labor,
                             material, storage or unpaid taxes affecting the
                             related Financed Vehicle which are or may become a
                             lien prior to, or equal or coordinate with, the
                             security interest granted by such Contract.

                      (ix)   Such Contract, and the sale of the Financed Vehicle
                             sold thereunder, complied, at the time it was made,
                             in all material respects with all applicable
                             federal, state and local laws (and regulations
                             thereunder), including without limitation usury,
                             equal credit opportunity, fair credit reporting,
                             truth-in-lending or other similar laws, the Federal
                             Trade Commission Act, the Fair Debt Collection
                             Practices Act, the Fair Credit Billing Act, the
                             Magnuson-Moss Warranty Act, the Federal Reserve
                             Board's Regulations B and Z, the Soldiers' and
                             Sailors' Civil Relief Act of 1940, state adoptions
                             of the National Consumer Act and the Uniform
                             Consumer Credit Code, and other applicable state
                             laws regulating retail installment sales contracts
                             and loans in general and motor vehicle retail
                             installment contracts and loans in particular; and
                             the consummation of the transactions herein
                             contemplated, including, without limitation, the
                             transfer of ownership of such Contracts to the
                             Issuer and the receipt of interest by the
                             Noteholders, will not violate any applicable
                             federal, state or local law.

                      (x)    Such Contract is the legal, valid and binding
                             obligation of the related Obligor(s) thereunder and
                             is enforceable in accordance with its terms, except
                             only as such enforcement may be limited by
                             bankruptcy, insolvency or similar laws affecting
                             the enforcement of creditors' rights generally;
                             each party to such Contract had full legal capacity
                             to execute and deliver such Contract and all other
                             documents related

                                      -28-

<PAGE>   33

                             thereto and to grant the security interest
                             purported to be granted thereby; the terms of such
                             Contract have not been waived, amended or modified
                             in any respect, except by instruments that are part
                             of the related Contract Documents, and no such
                             waiver, amendment or modification has caused such
                             Contract to fail to meet all of the
                             representations, warranties and conditions, set
                             forth herein with respect thereto.

                      (xi)   Such Contract contains customary and enforceable
                             provisions such as to render the rights and
                             remedies of the holder or assignee thereof adequate
                             for the practical realization against the
                             collateral of the benefits of the security,
                             subject, as to enforceability, to bankruptcy,
                             insolvency, reorganization or similar laws
                             affecting the enforcement of creditors' rights
                             generally.

                      (xii)  As of the Closing Date, (a) there was no default,
                             breach, violation or event permitting acceleration
                             existing under such Contract (except payment
                             delinquencies permitted by subparagraph (v) above),
                             (b) there does not exist any continuing condition
                             that with notice or lapse of time would constitute
                             a default, breach, violation or event permitting
                             acceleration existing under such Contract, and (c)
                             the Seller has not waived any such default, breach,
                             violation or event permitting acceleration except
                             payment delinquencies permitted by subparagraph (v)
                             above.

                      (xiii) As of the Closing Date each related Financed
                             Vehicle will be covered by the Blanket Insurance
                             Policy; each of Onyx and the Seller shall at all
                             times comply with all of the provisions of such
                             insurance policy applicable to it so long as such
                             insurance policy is in effect.

                      (xiv)  As of the Closing Date, (a) such Contract will
                             require that the related Obligor(s) obtain and
                             maintain in effect for the related Financed Vehicle
                             a comprehensive and collision insurance policy (i)
                             in an amount at least equal to the lesser of (x)
                             its maximum insurable value or (y) the principal
                             amount due from the related Obligor(s) under such
                             Contract, (ii) naming Onyx as a loss payee and
                             (iii) insuring against loss and damage due to fire,
                             theft, transportation, collision and other risks
                             generally covered by comprehensive and collision
                             coverage and (b) the Servicer shall have put in
                             place a vendor's single interest insurance policy
                             providing coverage upon repossession of the related
                             Financed Vehicle in an amount equal to the lesser
                             of the actual cash value of such Financed Vehicle,
                             the cost of repair or replacement for such Financed
                             Vehicle and the unpaid balance of the related
                             Contract. Each of Onyx and the Seller shall at all
                             times comply with all of the provisions of such
                             insurance policies applicable to it.

                      (xv)   Such Contract was acquired by Onyx from a Dealer
                             with which it ordinarily does business, and no
                             adverse selection procedures have

                                      -29-

<PAGE>   34

                             been utilized in selecting such Contract from all
                             other similar contracts purchased or originated by
                             Onyx or any subsidiary.

                      (xvi)  Payments under such Contract have been applied in
                             accordance with the Rule of 78's Method, the
                             Actuarial Method or the Simple Interest Method, as
                             provided in the applicable Contract, and are due
                             monthly in substantially equal amounts through its
                             Maturity Date sufficient to fully amortize the
                             principal balance of such Contract by its Maturity
                             Date.

                      (xvii) There is only one original of such Contract and
                             such original, together with all other related
                             Contract Documents, is being held by the Custodian.

                     (xviii) As of the Closing Date, the Servicer has clearly
                             marked its electronic records to indicate that such
                             Contract is owned by the Issuer.

                      (xix)  At the date of origination of the Contract, the
                             original principal balance of such Contract was not
                             greater than the purchase price to the related
                             Obligor(s) (including taxes, warranties, licenses
                             and related charges) of the related Financed
                             Vehicle.

                      (xx)   As of the related Cut-Off Date, the Seller has not
                             received notice that any Obligor under such
                             Contract has filed for bankruptcy.

                      (xxi)  Such Contract had an original maturity of not more
                             than 72 months and as of the related Cut-Off Date,
                             such Contract has a remaining maturity of 72 months
                             or less;

                      (xxii) The first scheduled monthly payment for at least
                             80% of the Initial Contracts (by Outstanding
                             Principal Balance) is due on or before November 30,
                             2000, and the first scheduled monthly payment for
                             at least 90% of the Subsequent Contracts (by
                             Outstanding Principal Balance) is due on or before
                             December 31, 2000.

                     (xxiii) As of the related Cut-Off Date, such Contract has a
                             remaining principal balance of at least $500.

                      (xxiv) As of the related Cut-Off Date, such Contract is
                             secured by a Financed Vehicle that has not been
                             repossessed without reinstatement.

                      (xxv)  The related Obligor(s) were located in Alabama,
                             Arizona, California, Colorado, Connecticut,
                             Delaware, Florida, Georgia, Idaho, Illinois,
                             Indiana, Iowa, Kansas, Kentucky, Maryland,
                             Michigan, Minnesota, Mississippi, Missouri,
                             Montana, Nebraska, Nevada, New Jersey, North
                             Carolina, Oklahoma, Oregon, Pennsylvania, Rhode
                             Island,

                                      -30-

<PAGE>   35

                             South Carolina, Tennessee, Texas, Utah,
                             Virginia, Washington or West Virginia on the date
                             of origination of such Contract.

                      (xxvi) The Obligor on such Contract is either (a) a
                             natural person residing in any state or (b) another
                             entity, provided that a natural person is a joint
                             and several Obligor with respect to such Contract.

        (c) As to all of the Funded Contracts:

                      (i)    The aggregate Outstanding Principal Balance payable
                             by Obligors of the Funded Contracts as of the
                             related Cut-Off Date plus the initial deposit into
                             the Prefunding Account equals the Original Pool
                             Balance.

                      (ii)   As of the related Cut-Off Date, approximately
                             22.62% of the Outstanding Principal Balance of all
                             Funded Contracts is attributable to loans involving
                             new Financed Vehicles, and approximately 77.38% of
                             the Outstanding Principal Balance of all Funded
                             Contracts is attributable to loans involving used
                             Financed Vehicles.

                      (iii)  As of the related Cut-Off Date, the aggregate
                             Outstanding Principal Balance of all Funded
                             Contracts originated in any single state, other
                             than California, did not equal or exceed 10%.

        (d) As to each Prefunded Contract (except as noted below as being
applicable only to either Precomputed Contracts or Simple Interest Contracts),
as of the related Prefunding Transfer Date (except as otherwise noted):

                      (i)    The information pertaining to such Contract set
                             forth in the related Transfer Certificate is true
                             and correct in all material respects as of the
                             related Prefunding Transfer Date.

                      (ii)   As of the related Prefunding Transfer Date, such
                             Contract was secured by a valid and enforceable
                             first priority security interest in favor of Onyx
                             in the related Financed Vehicle, and such security
                             interest is duly perfected and is prior to all
                             other liens upon and security interests in such
                             Financed Vehicle which exist or may hereafter arise
                             or be created (except, as to priority, for any lien
                             for unpaid taxes or unpaid storage or repair
                             charges which may arise after the Prefunding
                             Transfer Date in accordance with the UCC); such
                             security interest is assignable, has been assigned
                             by Onyx to the Seller pursuant to the Purchase
                             Agreement and, as of the Prefunding Transfer Date,
                             has been assigned by the Seller to the Issuer
                             pursuant to Section 2.01(b) hereof.

                      (iii)  (A) If the related Contract is originated in a
                             state in which notation of a security interest on
                             the Title Document (or in the electronic title
                             records) is required or permitted to perfect the
                             security interest in the

                                      -31-

<PAGE>   36

                             related Financed Vehicle, the Title Document or the
                             electronic title records for such Financed Vehicle
                             show, or, if a new or replacement Title Document is
                             being applied for with respect to such Financed
                             Vehicle, the Title Document will be received within
                             180 days of the related Prefunding Transfer Date
                             and will show, Onyx named as the original secured
                             party under the related Contract as the holder of a
                             first priority security interest in such Financed
                             Vehicle, and (B) if the related Contract is
                             originated in a state in which the filing of a
                             financing statement under the UCC is required to
                             perfect a security interest in motor vehicles, such
                             filings or recordings have been duly made and show
                             Onyx named as the original secured party under the
                             related Contract as of the related Prefunding
                             Transfer Date, and in either case, the Indenture
                             Trustee on behalf of the Noteholders and the
                             Insurer has the same rights as such secured party
                             has or would have (if such secured party were still
                             the owner of the Contract) against all parties
                             claiming an interest in such Financed Vehicle. With
                             respect to each Contract for which the Title
                             Document has not yet been returned from the
                             Registrar of Titles (or evidenced in the electronic
                             title records), Onyx has received written evidence
                             that such Title Documents showing Onyx as first
                             lienholder have been applied for as of the related
                             Prefunding Transfer Date.

                      (iv)   As of the related Prefunding Transfer Date, the
                             Seller had good and marketable title to and was the
                             sole owner of each Contract to be transferred to
                             the Issuer pursuant to Section 2.01(b) free of
                             liens, claims, encumbrances and rights of others
                             and, upon transfer of such Contract to the Issuer
                             pursuant to Section 2.01(b), the Issuer will have
                             good and marketable title to, will have a first
                             perfected security interest in and will be the sole
                             owner of such Contract free of liens, encumbrances
                             and rights of others.

                      (v)    As of the related Prefunding Cut-Off Date, the most
                             recent scheduled payment due on each such Contract
                             has been made or was not delinquent more than 30
                             days and, to the best of the Seller's knowledge,
                             all payments on the Contract were made by the
                             related Obligors.

                      (vi)   As of the related Prefunding Transfer Date, there
                             is no lien against the related Financed Vehicle for
                             delinquent taxes.

                      (vii)  As of the related Prefunding Transfer Date, there
                             is no right of rescission, offset, defense or
                             counterclaim to the obligation of the Obligor(s) to
                             pay the unpaid principal or interest due under such
                             Contract; the operation of the terms of such
                             Contract or the exercise of any right thereunder
                             will not render such Contract unenforceable in
                             whole or in part or subject such Contract to any
                             right of rescission, offset, defense or
                             counterclaim, and the Seller has no knowledge that

                                      -32-

<PAGE>   37

                             such right of rescission, offset, defense or
                             counterclaim has been asserted or threatened.

                      (viii) As of the related Prefunding Transfer Date, to the
                             best of the Seller's knowledge, there are no liens
                             or claims which have been filed, including liens
                             for work, labor, material, storage or unpaid taxes
                             affecting the related Financed Vehicle which are or
                             may become a lien prior to, or equal or coordinate
                             with, the security interest granted by such
                             Contract.

                      (ix)   Such Contract, and the sale of the related Financed
                             Vehicle sold thereunder, complied, at the time it
                             was made, in all material respects with all
                             applicable federal, state and local laws (and
                             regulations thereunder), including without
                             limitation usury, equal credit opportunity, fair
                             credit reporting, truth-in-lending or other similar
                             laws, the Federal Trade Commission Act, the Fair
                             Debt Collection Practices Act, the Fair Credit
                             Billing Act, the Magnuson-Moss Warranty Act, the
                             Federal Reserve Bond's Regulations B and Z and, the
                             Soldiers' and Sailors' Civil Relief Act of 1940,
                             state adoptions of the National Consumer Act and
                             the Uniform Consumer Credit Code, and other
                             applicable state laws regulating retail installment
                             sales contracts and loans in general and motor
                             vehicle retail installment contracts and loans in
                             particular; and the consummation of the
                             transactions herein contemplated, including,
                             without limitation, the transfer of ownership of
                             such Contract to the Issuer and the receipt of
                             interest by the Noteholders, will not violate any
                             applicable federal, state or local law.

                      (x)    Such Contract is the legal, valid and binding
                             obligation of the related Obligor(s) thereunder and
                             is enforceable in accordance with its terms, except
                             only as such enforcement may be limited by
                             bankruptcy, insolvency or similar laws affecting
                             the enforcement of creditors' rights generally;
                             each party to such Contract had full legal capacity
                             to execute and deliver such Contract and all other
                             documents related thereto and to grant the security
                             interest purported to be granted thereby; the terms
                             of such Contract have not been waived, amended or
                             modified in any respect, except by instruments that
                             are part of the related Contract Documents, and no
                             such waiver, amendment or modification has caused
                             such Contract to fail to meet all of the
                             representations, warranties and conditions set
                             forth herein with respect thereto.

                      (xi)   Such Contract contains customary and enforceable
                             provisions such as to render the rights and
                             remedies of the holder or assignee thereof adequate
                             for the practical realization against the
                             collateral of the benefits of the security,
                             subject, as to enforceability, to bankruptcy,
                             insolvency, reorganization or similar laws
                             affecting the enforcement of creditors' rights
                             generally.

                                      -33-

<PAGE>   38

                      (xii)  As of the related Prefunding Transfer Date, (a)
                             there is no default, breach, violation or event
                             permitting acceleration existing under such
                             Contract (except payment delinquencies permitted by
                             subparagraph (v) above), (b) there does not exist
                             any continuing condition that with notice or lapse
                             of time would constitute a default, breach,
                             violation or event permitting acceleration existing
                             under such Contract, and (c) the Seller has not
                             waived any such default, breach, violation or event
                             permitting acceleration except payment
                             delinquencies permitted by subparagraph (v) above.

                      (xiii) As of the related Prefunding Transfer Date, each
                             related Financed Vehicle will be covered by the
                             Blanket Insurance Policy; each of Onyx and the
                             Seller shall at all times comply with all of the
                             provisions of such insurance policy applicable to
                             it so long as such insurance policy is in effect.

                      (xiv)  As of the related Prefunding Transfer Date, (a)
                             such Contract will require that the related
                             Obligor(s) obtain and maintain in effect for the
                             related Financed Vehicle a comprehensive and
                             collision insurance policy (i) in an amount at
                             least equal to the lesser of (x) its maximum
                             insurable value or (y) the principal amount due
                             from the related Obligor(s) under such Contract,
                             (ii) naming Onyx as a loss payee and (iii) insuring
                             against loss and damage due to fire, theft,
                             transportation, collision and other risks generally
                             covered by comprehensive and collision coverage and
                             (b) the Servicer shall have put in place a vendor's
                             single interest insurance policy providing coverage
                             upon repossession of the related Financed Vehicle
                             in an amount equal to the lesser of the actual cash
                             value of such Financed Vehicle, the cost of repair
                             or replacement for such Financed Vehicle and the
                             unpaid balance of the related Contract. Each of
                             Onyx and the Seller shall at all times comply with
                             all of the provisions of such insurance policies
                             applicable to it.

                      (xv)   Such Contract was acquired by Onyx from a Dealer
                             with which it ordinarily does business, and no
                             adverse selection procedures have been utilized in
                             selecting such Contract from all other similar
                             contracts purchased or originated by Onyx or any
                             subsidiary.

                      (xvi)  Payments under such Contract have been applied in
                             accordance with Rule of 78's Method, the Actuarial
                             Method or the Simple Interest Method, as provided
                             in the applicable Contract, and are due monthly in
                             substantially equal amounts through its Maturity
                             Date sufficient to fully amortize the principal
                             balance of such Contract by its Maturity Date.

                                      -34-

<PAGE>   39

                      (xvii) There is only one original of such Contract and
                             such original, together with all other related
                             Contract Documents, is being held by the Custodian.

                     (xviii) As of the related Prefunding Transfer Date, the
                             Servicer has clearly marked its electronic records
                             to indicate that such Contract is then owned by the
                             Issuer.

                      (xix)  At the date of origination of the Contract, the
                             original principal balance of such Contract was not
                             greater than the purchase price to the related
                             Obligor(s) (including taxes, warranties, licenses
                             and related charges) of the related Financed
                             Vehicle.

                      (xx)   As of the related Prefunding Cut-Off Date, the
                             Seller has not received notice that any Obligor
                             under such Contract has filed for bankruptcy.

                      (xxi)  Such Contract has an original maturity of not more
                             than 72 months, and as of the related Prefunding
                             Cut-Off Date, such Contract has a remaining
                             maturity of 72 months or less.

                      (xxii) As of the related Prefunding Cut-Off Date, such
                             Contract has a remaining principal balance of at
                             least $500.

                     (xxiii) As of the related Prefunding Cut-Off Date, such
                             Contract is secured by a Financed Vehicle that has
                             not been repossessed without reinstatement.

                      (xxiv) The Obligor on such Contract is either (a) a
                             natural person residing in any state or (b) another
                             entity, provided that a natural person is a joint
                             and several Obligor with respect to such Contract.

                      (xxv)  No more than 50% of the Prefunded Contracts
                             transferred to the Issuer as of any Prefunding
                             Transfer Date shall be originated in any one state.

        (e) None of the foregoing representations and warranties shall be
construed as, and the Seller is specifically not making, any representations and
warranties regarding the collectibility of the Contracts or the future
performance of the Contracts.

        (f) The Seller has not prepared any financial statement which accounts
for the transfer of the Trust Property (other than the Policy and the Spread
Account) hereunder to the Issuer in any manner other than as a sale of the Trust
Property (other than the Policy and the Spread Account ) by it to the Issuer,
and the Seller has not in any other non-income tax respect (including, but not
limited to, for accounting purposes) accounted for or treated the transfer of
the Trust Property (other than the Policy and the Spread Account) hereunder in
any manner other than as a sale and absolute assignment to the Issuer of the
Seller's full right, title and ownership interest in the Trust Property (other
than the Policy and the Spread Account) to the Issuer.

                                      -35-

<PAGE>   40

        SECTION 2.03. REPURCHASE OF CERTAIN CONTRACTS.

        The representations and warranties of the Seller set forth in Section
2.02 with respect to each Contract and each of the conditions set forth in
Section 2.01(c) with respect to each transfer of Prefunded Contracts and Section
2.01(j) with respect to the Prefunding Closing Date and sale of Prefunded
Contracts shall survive delivery of the Contract Documents and shall continue
until the termination of this Agreement. Upon discovery by the Seller, the
Servicer, the Insurer or a Responsible Officer of the Owner Trustee, the
Indenture Trustee or the Trust Agent that any of such representations and
warranties was incorrect or that any of such conditions was unsatisfied as of
the time made or that any of the Contract Documents relating to any such
Contract has not been properly executed by the Obligor or contains a material
defect or has not been received by the Custodian, such Person making such
discovery shall give prompt notice to the other such Persons. If any such
defect, incorrectness or omission materially and adversely affects the interest
of the Noteholders, the Indenture Trustee, the Issuer or the Insurer, the Seller
shall cure the defect or eliminate or otherwise cure the circumstances or
condition in respect of which such representation or warranty was incorrect as
of the time made; provided that if the Seller is unable to do so by the last day
of the Collection Period following the Collection Period (or, if the Seller
elects, the last day of such Collection Period) during which the Seller becomes
aware of or receives written notice from the Servicer, the Insurer or the
Indenture Trustee of such defect, incorrectness or omission, it shall repurchase
such Contract on the last day of the applicable Collection Period from the
Issuer at the Purchase Amount. Upon any such repurchase, the Issuer shall
execute and deliver such instruments of transfer or assignment, in each case
without recourse, as shall be necessary to vest in the Seller any Contract
purchased hereunder. The sole remedy of the Issuer, the Indenture Trustee or the
Noteholders with respect to a breach of the Seller's representations and
warranties pursuant to Section 2.02 shall be to require the Seller to repurchase
Contracts pursuant to this Section; provided, however, that the Seller shall
indemnify the Owner Trustee, the Trust Agent, the Indenture Trustee, the
Insurer, the Issuer and the Noteholders against all costs, expenses, losses,
damages, claims and liabilities, including reasonable fees and expenses of
counsel, which may be asserted against or incurred by any of them as a result of
third-party claims arising out of the events or facts giving rise to such
breach.

        SECTION 2.04. CUSTODY OF CONTRACT FILES.

        (a)    Duties of Custodian.  The Custodian shall:

                      (i)    maintain continuous custody of the Contract
                             Documents in secure and fire resistant facilities
                             in accordance with customary standards for such
                             custody. Such Contract Documents shall not be
                             segregated to show the Issuer as owner thereof and
                             the Indenture Trustee as the pledgee thereof,
                             unless the Insurer requires such segregation.

                      (ii)   with respect to the Contract Documents, (A) act
                             exclusively as the Custodian for the benefit of the
                             Indenture Trustee and (B) hold all Contract
                             Documents for the exclusive use (notwithstanding
                             Sections 2.04(a)(iii) and 2.04(a)(iv) below) and
                             for the benefit of the Indenture Trustee.

                      (iii)  in the event that the Servicer is not the
                             Custodian, to the extent the Servicer directs the
                             Custodian in writing, deliver certain specified

                                      -36-

<PAGE>   41

                             Contract Documents to the Servicer to enable the
                             Servicer to service the Contracts pursuant to this
                             Agreement. At such time as the Servicer returns
                             such Contract Documents to the Custodian, the
                             Servicer shall provide written notice of such
                             return to the Custodian. The Custodian shall
                             acknowledge receipt of the returned materials by
                             signing the Servicer's notice and shall promptly
                             send copies of such acknowledgment or receipt to
                             the Servicer.

                      (iv)   upon reasonable prior written notice, permit the
                             Servicer, the Indenture Trustee and the Insurer to
                             examine the Contract Documents in the possession,
                             or under the control, of the Custodian.

                      (v)    at its own expense, maintain at all times while
                             acting as Custodian, and keep in full force and
                             effect (A) fidelity insurance, (B) theft of
                             documents insurance, (C) fire insurance, and (d)
                             forgery insurance. All such insurance shall be in
                             amounts, with standard coverage and subject to
                             deductibles, as are customary for similar insurance
                             typically maintained by banks that act as custodian
                             in similar transactions.

        (b) Appointment of Custodian. As of the Closing Date, Onyx shall be the
Custodian of the Contract Documents; provided, however, that (i) the Indenture
Trustee (if the Notes have not been paid in full and the Indenture has not been
satisfied and discharged) and the Issuer, with the consent of the Insurer, or
(ii) the Insurer, may terminate such appointment at any time, with or without
cause by written notice to the Custodian, and upon the execution by the
Indenture Trustee at the direction of the Insurer (or, if the Notes have been
paid in full and the Indenture has been satisfied and discharged, the Issuer at
the direction of the Insurer) of a letter agreement substantially in the form of
Exhibit A attached hereto (the "APPOINTMENT OF CUSTODIAN"), revocably appointing
such other entity acceptable to the Insurer as agent of and bailee for the
Indenture Trustee (or, if applicable, the Trust) to act as Custodian (the
"SUCCESSOR CUSTODIAN") of the Contract Documents, such Successor Custodian shall
be so appointed and shall from the effective date of such Appointment of
Custodian retain custody of the Contract Documents and any and all other
documents relating to a Contract or the related Obligor or Financed Vehicle. As
of the effective date of such Appointment of Custodian, the Contract Documents
and any and all other documents relating to a Contract or the related Obligor or
Financed Vehicle will be delivered to the Successor Custodian in its capacity as
agent of and bailee for the Indenture Trustee (or, if applicable, the Trust).

        For so long as the Servicer is the Custodian of the Contract Documents,
the Servicer need not maintain the Contract Documents held by it in a file area
physically separate from the other installment sales contracts or loans owned or
serviced by it or any of its Affiliates, unless the Insurer requires such
segregation.

        SECTION 2.05. DUTIES OF SERVICER RELATING TO THE CONTRACTS.

        (a) Safekeeping. The Servicer, in its capacity as servicer, shall hold
the Contract Files and any Contract Documents held by it in accordance with this
Agreement on behalf of the Issuer, the Indenture Trustee and the Insurer for the
use and benefit of all present and future Noteholders, and maintain such
accurate and complete accounts, records and computer systems pertaining to each

                                      -37-

<PAGE>   42

Contract File as shall enable the Issuer to comply with this Agreement. In
performing its duties as servicer, the Servicer shall act with reasonable care,
using that degree of skill and attention that the Servicer exercises with
respect to the files relating to all comparable automobile contracts that the
Servicer owns or services for itself or others. The Servicer shall (i) conduct,
or cause to be conducted, periodic physical inspections of the Contract Files
(and the Contract Documents, if the Servicer is acting as Custodian) held by it
under this Agreement and of the related accounts, records and computer systems;
(ii) maintain the Contract Files (and the Contract Documents, if the Servicer is
acting as Custodian) in such a manner as shall enable the Issuer, the Indenture
Trustee and the Insurer to verify the accuracy of the Servicer's record keeping;
(iii) promptly report to the Issuer, the Indenture Trustee and the Insurer any
failure on its part to hold the Contract Files (and the Contract Documents, if
the Servicer is acting as Custodian) and maintain its accounts, records and
computer systems as herein provided and (iv) promptly take appropriate action to
remedy any such failure.

        (b) Maintenance of and Access to Records. The Servicer shall maintain
each Contract File (other than the Contract Documents, unless the Servicer is
acting as Custodian) at the address of the Servicer set forth in Section 9.04,
or at such other location as shall be specified to the Issuer, the Indenture
Trustee and the Insurer by 30 days' prior written notice. The Servicer shall
permit the Issuer, the Indenture Trustee and the Insurer or their respective
duly authorized representatives, attorneys or auditors to inspect the Contract
Files and the related accounts, records and computer systems maintained by the
Servicer at such times as such Persons may request.

        (c) Release of Documents. If the Servicer is acting as Custodian
pursuant to Section 2.04, upon instruction from the Indenture Trustee (a copy of
which shall be furnished to the Issuer and the Insurer), the Servicer shall
release any document in the Contract Files to the Indenture Trustee, the
Indenture Trustee's agent, or the Indenture Trustee's designee, as the case may
be, at such place or places as the Indenture Trustee may designate, as soon as
practicable.

        (d) Monthly Reports. On the Servicer Report Date of each month,
commencing with the month next succeeding the month of the Closing Date, the
Servicer shall deliver to the Issuer, the Indenture Trustee and the Insurer a
certificate of a Servicing Officer stating (i) the Contract Number and
outstanding principal balance of each Contract that has become a Liquidated
Contract since the Business Day immediately preceding the date of the last
certificate delivered pursuant to this subsection (or since the Closing Date in
the case of the first such certificate); (ii) that, if such Contract has been
the subject of a Full Prepayment pursuant to clause (a) of the definition of the
term "Full Prepayment" or is a Liquidated Contract pursuant to clause (iii) of
the definition of the term "Liquidated Contract," all proceeds received in
respect thereof have been deposited in or credited to the Collection Account in
accordance with Section 4.02; (iii) that, if such Contract has been the subject
of a Full Prepayment pursuant to clause (b) of the definition of the term "Full
Prepayment," the correct Purchase Amount has been deposited in or credited to
the Collection Account in accordance with Section 2.03, 3.07 or 4.02; (iv) that,
if such Contract is a Liquidated Contract pursuant to clause (ii) of the
definition of the term "Liquidated Contract," there have been deposited in or
credited to the Collection Account the related Net Liquidation Proceeds in
accordance with Section 4.02; and (v) that the Indenture Trustee is authorized
to release such Contract and the related Contract Documents as provided herein.

        (e) Schedule of Title Documents. The Servicer shall deliver to the
Indenture Trustee, the Issuer and the Insurer (i) within 60 days of the Closing
Date with respect to the Funded Contracts and within 60 days of the Prefunding
Closing Date with respect to the Prefunded Contracts, a

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<PAGE>   43

schedule of Title Documents for Financed Vehicles which, as of the Closing Date
or the Prefunding Closing Date, as applicable, did not show Onyx as first
lienholder and (ii) within 180 days of the Closing Date with respect to the
Funded Contracts and within 180 days of the Prefunding Closing Date with respect
to the Prefunded Contracts, a schedule of Title Documents for Financed Vehicles
which, as of the date prior to such delivery, do not show Onyx as first
lienholder and as to which the Seller is obligated to repurchase pursuant to the
provisions hereof.

        (f) Electronic Marking of Contracts; Possession. The Servicer shall
cause the electronic record of the Contracts maintained by it to be clearly
marked to indicate that the Contracts have been sold to the Issuer and shall not
in any way assert or claim an ownership interest in the Contracts. It is
intended that pursuant to the applicable provisions of Sections 2.04 and 2.05
hereof and the Appointment of Custodian, the Custodian on behalf of the
Indenture Trustee and the Insurer shall be deemed to have possession of the
Contract Documents for purposes of Section 9-305 of the UCC of the state in
which the Contract Documents are located.

        SECTION 2.06. INSTRUCTIONS; AUTHORITY TO ACT.

        The Servicer shall be deemed to have received proper instructions (a
copy of which shall be furnished to the Issuer and the Insurer) with respect to
the Contract Files upon its receipt of written instructions signed by a
Responsible Officer of the Indenture Trustee.

        SECTION 2.07. INDEMNIFICATION.

        Subject to Section 7.02, the Servicer shall indemnify the Issuer, the
Owner Trustee, the Trust Agent, the Indenture Trustee, the Insurer, the
Custodian and the Noteholders for any and all liabilities, obligations, losses,
compensatory damages, payments, costs or expenses of any kind whatsoever
(including the reasonable fees and expenses of counsel) that may be imposed on,
incurred by or asserted against the Issuer, the Owner Trustee, the Trust Agent,
the Indenture Trustee, the Insurer, the Custodian or the Noteholders as the
result of any improper act or omission in any way relating to the maintenance
and custody by the Servicer of the Contract Files, or the failure of the
Servicer to perform its duties and service the Contracts in compliance with the
terms of this Agreement; provided, however, that the Servicer shall not be
liable to the Owner Trustee, the Trust Agent, the Indenture Trustee, the
Custodian or the Insurer for any portion of any such amount resulting from the
willful misfeasance, bad faith or negligence of the Owner Trustee, the Trust
Agent, the Indenture Trustee, the Custodian or the Insurer, respectively. The
Servicer shall also indemnify and hold harmless the Issuer, the Trust Property,
the Noteholders, the Custodian, the Indenture Trustee, the Trust Agent and the
Insurer against any taxes that may be asserted at any time against any of them
with respect to the Contracts, including any sales, gross receipts, general
corporation, personal property, privilege or license taxes (but exclusive of
federal or other income taxes arising out of payments on the Contracts) and the
costs and expenses in defending against such taxes. The Servicer shall (i)
immediately notify the Issuer and the Indenture Trustee if a claim is made by a
third party with respect to the Contracts, (ii) assume, with the consent of the
Issuer, the Indenture Trustee and the Insurer, the defense of any such claim,
(iii) pay all expenses in connection therewith, including counsel fees, and (iv)
promptly pay, discharge and satisfy any judgment or decree which may be entered
against the Servicer, the Issuer, the Owner Trustee, the Trust Agent, the
Indenture Trustee, the Insurer, the Custodian or the Noteholders with respect to
such Contracts.

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<PAGE>   44

        SECTION 2.08. EFFECTIVE PERIOD AND TERMINATION.

        The appointment of Onyx as custodian shall become effective as of the
Closing Date and shall continue in full force and effect until the earlier of
(i) the execution of the Appointment of Custodian or (ii) the Class A-4 Final
Scheduled Distribution Date. If Onyx shall subsequently resign as Servicer in
accordance with the terms of this Agreement or if all of the rights and
obligations of the Servicer shall have been terminated pursuant to Section 7.01,
the appointment of the Servicer as Custodian may be terminated by the Insurer,
or if an Insurer Default has occurred and is continuing, by Holders evidencing
not less than 25% of the outstanding principal amount of the Notes, acting
together as a single Class, or by the Indenture Trustee. As soon as practicable
after any termination of such appointment, Onyx as Custodian and Onyx as
Servicer shall, at the Servicer's expense, deliver or cause the delivery of all
Contract Documents and all Contract Files (including those held in microfiche or
electronic form) to the Indenture Trustee or its agent (or, if the Indenture has
been satisfied and discharged, as directed by the Trust, with the consent of the
Insurer) at such place or places as the applicable party may reasonably
designate and shall cooperate in good faith to effect such delivery. The
foregoing notwithstanding, if the Servicer is acting as Custodian, the Servicer
shall, at the request of the Insurer, deliver the Contract Documents to the
Indenture Trustee in the event that such delivery is required by any Rating
Agency to consider the Notes investment grade without consideration of the
Policy.

        SECTION 2.09. NONPETITION COVENANT.

        (a) Neither the Seller nor the Servicer shall petition or otherwise
invoke the process of any court or government authority for the purpose of
commencing or sustaining a case against the Issuer under any federal or state
bankruptcy, insolvency or similar law or appointing a receiver, liquidator,
assignee, trustee, custodian, sequestrator or other similar official of the
Issuer or any substantial part of its property, or ordering the winding up or
liquidation of the affairs of the Issuer.

        (b) The Servicer shall not, nor cause the Seller to, petition or
otherwise invoke the process of any court or government authority for the
purpose of commencing or sustaining a case against the Seller under any federal
or state bankruptcy, insolvency or similar law or appointing a receiver,
liquidator, assignee, trustee, custodian, sequestrator or other similar official
of the Seller or any substantial part of its property, or ordering the winding
up or liquidation of the affairs of the Seller.

        SECTION 2.10. COLLECTING TITLE DOCUMENTS NOT DELIVERED AT THE CLOSING
DATE.

        In the case of any Funded Contract or Prefunded Contract in respect of
which, in place of a Title Document, the Custodian received on the Closing Date
or the Prefunding Closing Date, as applicable, written evidence from the Dealer
selling the related Financed Vehicle that, or otherwise in respect of which, the
Title Document for such Financed Vehicle showing Onyx as first lienholder has
been applied for from the Registrar of Titles, the Servicer shall use its best
efforts to collect (or in the case of California, to obtain evidence in the
electronic title records of) such Title Document from the Registrar of Titles as
promptly as possible. If such Title Document showing Onyx as first lienholder is
not received by the Servicer (or in the case of the State of California,
verified by the Servicer in the electronic title records) within 180 days after
the Closing Date with respect to the Funded Contracts or within 180 days after
the Prefunding Closing Date with respect to the Prefunded Contracts, then the
representation and warranty in Section 2.02(b)(iii) as to any such Funded

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<PAGE>   45

Contracts or the representation and warranty in Section 2.02(d)(iii) as to any
such Prefunded Contracts in respect of such Contract shall be deemed to have
been incorrect in a manner that materially and adversely affects the
Noteholders, and the Seller shall be obligated to repurchase such Contract in
accordance with Section 2.03.

                                   ARTICLE III

                    ADMINISTRATION AND SERVICING OF CONTRACTS

        SECTION 3.01. DUTIES OF SERVICER.

        The Servicer shall manage, service, administer, and make collections on
the Contracts. The Servicer agrees that its servicing of the Contracts shall be
carried out in accordance with reasonable care and, to the extent more exacting,
the procedures used by the Servicer in respect of such contracts serviced by it
for its own account; provided, however, that, subject to Section 3.02 as to
extensions, the Servicer shall not release or waive the right to collect the
unpaid balance of any Contract. The Servicer's duties shall include collection
and posting of all payments, responding to inquiries of Obligors on the
Contracts, investigating delinquencies, sending payment coupons to Obligors,
reporting tax information to Obligors, accounting for collections, furnishing
monthly and annual statements to the Indenture Trustee, the Issuer and the
Insurer with respect to distributions and the preparation of U.S. Partnership
Tax Returns (Form 1065) for the Owner Trustee to sign and file on an annual
basis, based on a tax year for the Issuer that is the calendar year and any
other tax forms required by any federal, state or local tax authority including
with respect to original issue discount, if any. The Servicer shall have,
subject to the terms hereof, full power and authority, acting alone, and subject
only to the specific requirements and prohibitions of this Agreement, to do any
and all things in connection with such managing, servicing, administration, and
collection that it may deem necessary or desirable; provided, however, that the
Servicer shall commence repossession efforts in respect of any Financed Vehicle
when any payment on the related Contract of which is four or more months
delinquent. Without limiting the generality of the foregoing, but subject to the
provisions of this Agreement, the Servicer is authorized and empowered by the
Indenture Trustee and the Issuer to execute and deliver, on behalf of itself,
the Issuer, the Insurer, the Noteholders, the Indenture Trustee or any of them,
any and all instruments of satisfaction or cancellation, or partial or full
release or discharge, and all other comparable instruments, with respect to the
Contracts or to the Financed Vehicles. The Issuer shall furnish the Servicer any
documents necessary or appropriate to enable the Servicer to carry out its
servicing and administrative duties hereunder. The Servicer may engage agents
and subservicers to fulfill its duties hereunder; provided, however, that the
Servicer shall remain at all times personally liable for the acts (and failures
to act) of such agents and subservicers.

        On or prior to the Closing Date, the Servicer shall deliver to the Owner
Trustee, the Trust Agent, the Indenture Trustee and the Insurer a list of
Servicing Officers of the Servicer involved in, or responsible for, the
administration and servicing of the Contracts, which list shall from time to
time be updated by the Servicer on request of the Owner Trustee, the Trust
Agent, the Indenture Trustee or the Insurer.

        On the Closing Date, the Servicer shall deposit in the Collection
Account (i) all installments of Monthly P&I due on or after the Initial Cut-Off
Date and received by the Servicer at least two Business Days prior to the
Closing Date; (ii) the proceeds of each Full Prepayment of any Contract

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<PAGE>   46

and all partial prepayments on Simple Interest Contracts received by the
Servicer on or after the Initial Cut-Off Date and at least two Business Days
prior to the Closing Date; and (iii) all Net Liquidation Proceeds and Net
Insurance Proceeds received with respect to a Financed Vehicle to which an
Initial Contract relates received on or after the Initial Cut-Off Date and at
least two Business Days prior to the Closing Date.

        On each Prefunding Transfer Date, the Servicer shall deposit in the
Collection Account (i) all installments of Monthly P&I due on or after the
related Prefunding Cut-Off Date and received by the Servicer at least two
Business Days prior to such Prefunding Transfer Date; (ii) the proceeds of each
Full Prepayment of any Prefunded Contract and all partial prepayments on Simple
Interest Contracts received by the Servicer on or after the related Prefunding
Cut-Off Date and at least two Business Days prior to such Prefunding Transfer
Date; and (iii) all Net Liquidation Proceeds and Net Insurance Proceeds received
with respect to a Financed Vehicle to which a Prefunded Contract being
transferred on such date relates, received on or after the related Prefunding
Cut-Off Date and at least two Business Days prior to such Prefunding Transfer
Date.

        Subject to Section 4.02(a) respecting deposits in the Payahead Account,
the Servicer shall deposit in or credit to the Collection Account within two
Business Days of receipt all collections of Monthly P&I due on or after the
related Cut-Off Date received by it on the Contracts together with the proceeds
of all Full Prepayments on all Contracts and all partial prepayments on Simple
Interest Contracts, and any accompanying interest. The Servicer shall likewise
deposit in the Collection Account within two Business Days of receipt all Net
Liquidation Proceeds and Net Insurance Proceeds. As of the last day of each
Collection Period, all amounts received in each Collection Period shall be
applied by the Servicer with respect to each Contract, first, to the Servicer as
additional servicing compensation any amounts due for late fees, extension fees
or similar charges, second to the payment of Monthly P&I, and third, in the case
of partial prepayments on Precomputed Contracts, to the Payahead Account. The
foregoing requirements for deposit in the Collection Account are exclusive, it
being understood that collections in the nature of late payment charges or
extension fees may, but need not be deposited in the Collection Account and may
be retained by the Servicer as additional servicing compensation.

        With respect to payments of Monthly P&I made by Obligors to the
Servicer's lock box, the Servicer shall direct the Person maintaining the lock
box to deposit the amount collected on the Contracts within one Business Day to
the Clearing Account. Such amounts shall be withdrawn from the Clearing Account
and deposited in the Collection Account no later than the next following
Business Day.

        In order to facilitate the servicing of the Contracts by the Servicer,
the Servicer shall retain, subject to and only to the extent permitted by the
provisions of this Agreement, all collections on the Contracts prior to the time
they are remitted or credited, in accordance with such provisions, to the
Collection Account or the Payahead Account, as the case may be. The Servicer
acknowledges that the unremitted collections on the Contracts are part of the
Trust Property and the Servicer agrees to act as custodian and bailee of the
Indenture Trustee, the Issuer and the Insurer in holding such monies and
collections. The Servicer agrees, for the benefit of the Indenture Trustee, the
Issuer, the Noteholders and the Insurer, to act as such custodian and bailee,
and to hold and deal with such monies and such collections, as custodian and
bailee for the Indenture Trustee, the Issuer and the Insurer, in accordance with
the provisions of this Agreement.

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<PAGE>   47

        The Servicer shall retain all data (including, without limitation,
computerized title records) relating directly to or maintained in connection
with the servicing of the Contracts at the address of the Servicer set forth in
Section 9.04 or, upon 15 days' notice to the Issuer, the Indenture Trustee and
the Insurer, at such other place where the servicing offices of the Servicer are
located, and shall give the Issuer, the Indenture Trustee and the Insurer access
to all data (including, without limitation, computerized title records) at all
reasonable times, and, while a Servicer Default shall be continuing, the
Servicer shall, on demand of the Issuer, the Indenture Trustee or the Insurer
deliver or cause to be delivered to the Issuer, the Indenture Trustee or the
Insurer, as the case may be, all data (including, without limitation,
computerized title records and, to the extent transferable, related operating
software) necessary for the servicing of the Contracts and all monies collected
by it and required to be deposited in or credited to the Collection Account or
the Payahead Account, as the case may be.

        All deposits made by the Servicer in any Trust Account shall be made in
immediately available funds.

        The Servicer shall be responsible for the payment of the fees of the
Indenture Trustee, the Owner Trustee and the Trust Agent; provided that any such
fees not paid as of a Distribution Date shall be paid as provided in Section
4.03(ii).

        SECTION 3.02. COLLECTION OF CONTRACT PAYMENTS.

        The Servicer shall use its best efforts to collect all payments called
for under the terms and provisions of the Contracts as and when the same shall
become due and shall use its best efforts to cause each Obligor to make all
payments in respect of his or her Contract to the Servicer. Consistent with the
foregoing, the Servicer may in its discretion (i) waive any late payment charges
in connection with delinquent payments on a Contract or prepayment charges and
(ii) in order to work out a default or an impending default due to the financial
condition of an Obligor, grant up to three extensions of the Due Date of any
payment for periods of 30 days or less, such that the Maturity Date of no
Contract shall, under any circumstances, extend more than 120 days past the
originally scheduled date of the last payment on such Contract and in no event
beyond the Class A-4 Final Scheduled Distribution Date. The Servicer shall not
extend the Maturity Date of a Contract except as provided in clause (ii) of the
preceding sentence. Except as explicitly permitted by this paragraph, the
Servicer shall not change any material term of a Contract, including but not
limited to the interest rate, the payment amounts or due dates, or the property
securing such Contract.

        SECTION 3.03. REALIZATION UPON CONTRACTS.

        The Servicer shall use its best efforts, consistent with the servicing
standard specified in Section 3.01, to repossess or otherwise convert the
ownership of the Financed Vehicle securing any Contract as to which no
satisfactory arrangements can be made for collection of delinquent payments.
Such servicing procedures may include reasonable efforts to realize upon any
recourse to Dealers and selling the Financed Vehicle at public or private sale.
In connection with such repossession or other conversion, the Servicer shall
follow such practices and procedures as it shall deem necessary or advisable and
as shall be normal and usual for prudent holders of retail installment sales
contracts and as shall be in compliance with all applicable laws, and, in
connection with the repossession of any Financed Vehicle or any contract in
default, may commence and prosecute any proceedings in respect of such Contract
in its own name or, if the Servicer deems it

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<PAGE>   48

necessary, in the name of the Issuer or the Indenture Trustee or on behalf of
the Issuer or the Indenture Trustee. The Servicer's obligations under this
Section are subject to the provision that, in the case of damage to a Financed
Vehicle from an uninsured cause, the Servicer shall not be required to expend
its own funds in repairing such motor vehicle unless it shall determine (i) that
such restoration will increase the proceeds of liquidation of the related
Contract, after reimbursement to itself for such expenses and (ii) that such
expenses will be recoverable by it either as Liquidation Expenses or as expenses
recoverable under an applicable insurance policy or under an insurance reserve
established by the Servicer. The Servicer shall be responsible for all other
costs and expenses incurred by it in connection with any action taken in respect
of a Defaulted Contract; provided, however, that it shall be entitled to
reimbursement of such costs and expenses to the extent they constitute
Liquidation Expenses or expenses recoverable under an applicable insurance
policy. All Net Liquidation Proceeds and Net Insurance Proceeds shall be
deposited directly in or credited to the Collection Account (without deposit in
any intervening account) to the extent required by Section 4.02.

        SECTION 3.04. INSURANCE.

        The Servicer shall cause to be maintained the Blanket Insurance Policy,
and the Servicer shall cause the Indenture Trustee to be the named payee
thereunder with respect to the Contracts; provided, however, that this
obligation may be eliminated or modified in any manner (and this Agreement shall
be amended in accordance with any such elimination or modification as the
parties to the Insurance Agreement and the Rating Agencies may agree) with the
consent of the Insurer but without any requirement to obtain the consent of any
Noteholders.

        SECTION 3.05. MAINTENANCE OF SECURITY INTERESTS IN FINANCED VEHICLES.

        The Servicer shall take such steps as are necessary to maintain
continuous perfection and priority of the security interest created by each
Contract in the related Financed Vehicle, including but not limited to,
obtaining the execution by the related Obligor and the recording, registering,
filing, re-recording, re-registering, and refiling of all security agreements,
financing statements, continuation statements or other instruments as are
necessary to maintain the security interest granted by such Obligor under each
respective Contract. The Issuer and the Indenture Trustee each hereby authorize
the Servicer to take such steps as are necessary to re-perfect such security
interest on behalf of the Issuer in the event of the relocation of a Financed
Vehicle or for any other reason. In the event that the assignment of a Contract
to the Issuer and the subsequent pledge thereof by the Issuer to the Indenture
Trustee is insufficient, without a notation on the related Financed Vehicle's
certificate of title (or, if applicable, in the case of the State of California,
the electronic title record), or without fulfilling any additional
administrative requirements under the laws of the state in which the Financed
Vehicle is located, to grant to the Issuer a perfected security interest in the
related Financed Vehicle and to pledge such perfected security interest to the
Indenture Trustee, Onyx hereby agrees that the identification of Onyx as the
secured party on the certificate of title (or, if applicable, in the case of the
State of California, the electronic title record) is deemed to be in its
capacity as agent of the Indenture Trustee and further agrees to hold such
certificate of title (or, if applicable, in the case of the State of California,
the electronic title record) as the Indenture Trustee's agent and custodian;
provided that, except as provided in Section 7.01 and the Insurance Agreement,
neither the Servicer nor Onyx shall make, nor shall the Issuer or Noteholders
have the right to require that the Servicer or Onyx make, any such notation on
the related Financed Vehicles' certificate of title (or, if

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<PAGE>   49

applicable, in the case of the State of California, the electronic title record)
or fulfill any such additional administrative requirement of the laws of the
state in which a Financed Vehicle is located.

        SECTION 3.06. COVENANTS, REPRESENTATIONS AND WARRANTIES OF SERVICER.

        The Servicer hereby makes the following covenants, representations and
warranties on which (i) the Issuer is deemed to have relied in acquiring the
Contracts and (ii) the Insurer is deemed to have relied in issuing the Policy.
Such covenants, representations and warranties speak as of the execution and
delivery of this Agreement and as of the Closing Date or the related Prefunding
Transfer Date, as applicable, but shall survive the sale, transfer and
assignment of the Contracts to the Issuer and the pledge thereof to the
Indenture Trustee pursuant to the Indenture.

        (a)    The Servicer covenants as to the Contracts:

                      (i)    The Financed Vehicle securing each Contract shall
                             not be released from the lien granted by the
                             Contract in whole or in part, except as
                             contemplated herein.

                      (ii)   The Servicer shall not impair the rights of the
                             Noteholders or the Insurer in the Contracts.

                      (iii)  The Servicer shall not increase the number of
                             payments under a Contract, nor increase the amount
                             financed under a Contract, nor extend or forgive
                             payments on a Contract, except as provided in
                             Section 3.02.

                      (iv)   The Servicer may consent to the sale or transfer by
                             an Obligor of any Financed Vehicle if the original
                             Obligor under the related Contract remains liable
                             under such Contract and the transferee assumes all
                             of the Obligor's obligations thereunder and upon
                             doing so the credit profile with respect to such
                             Obligor will not be changed from adequate to
                             speculative by virtue of the addition of the
                             transferee's obligation thereunder.

        (b)    The Servicer represents and warrants as of the Closing Date:

                      (i)    The Servicer (1) has been duly organized, is
                             validly existing and in good standing as a
                             corporation organized and existing under the laws
                             of the State of Delaware, (2) has qualified to do
                             business as a foreign corporation and is in good
                             standing in each jurisdiction where the character
                             of its properties or the nature of its activities
                             makes such qualification necessary, and (3) has
                             full power, authority and legal right to own its
                             property, to carry on its business as presently
                             conducted, and to enter into and perform its
                             obligations under this Agreement.

                      (ii)   The execution and delivery by the Servicer of this
                             Agreement are within the corporate power of the
                             Servicer and have been duly

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<PAGE>   50

                             authorized by all necessary corporate action on the
                             part of the Servicer. Neither the execution and
                             delivery of this Agreement, nor the consummation of
                             the transactions herein contemplated, nor
                             compliance with the provisions hereof, will
                             conflict with or result in a breach of, or
                             constitute a default under, any of the provisions
                             of any law, governmental rule, regulation,
                             judgment, decree or order binding on the Servicer
                             or its properties or the Certificate of
                             Incorporation or Bylaws of the Servicer, or any of
                             the provisions of any indenture, mortgage, contract
                             or other instrument to which the Servicer is a
                             party or by which it is bound or result in the
                             creation or imposition of any lien, charge or
                             encumbrance upon any of its property pursuant to
                             the terms of any such indenture, mortgage, contract
                             or other instrument.

                      (iii)  Other than consents that have been obtained prior
                             to the Closing Date, the Servicer is not required
                             to obtain the consent of any other party or any
                             consent, license, approval or authorization, or
                             registration or declaration with, any governmental
                             authority, bureau or agency in connection with the
                             execution, delivery, performance, validity or
                             enforceability of this Agreement.

                      (iv)   This Agreement has been duly executed and delivered
                             by the Servicer and, assuming the due
                             authorization, execution and delivery hereof by the
                             Issuer, the Trust Agent and the Indenture Trustee,
                             constitutes a legal, valid and binding obligation
                             of the Servicer enforceable against the Servicer in
                             accordance with its terms (subject to applicable
                             bankruptcy and insolvency laws and other similar
                             laws affecting the enforcement of creditors' rights
                             generally).

                      (v)    There are no actions, suits or proceedings pending
                             or, to the knowledge of the Servicer, threatened
                             against or affecting the Servicer, before or by any
                             court, administrative agency, arbitrator or
                             governmental body with respect to any of the
                             transactions contemplated by this Agreement, or
                             which will, if determined adversely to the
                             Servicer, materially and adversely affect it or its
                             business, assets, operations or condition,
                             financial or otherwise, or materially and adversely
                             affect the Servicer's ability to perform its
                             obligations under this Agreement. The Servicer is
                             not in default with respect to any order of any
                             court, administrative agency, arbitrator or
                             governmental body so as to materially and adversely
                             affect the transactions contemplated by the
                             above-mentioned documents.

                      (vi)   The Servicer has obtained or made all necessary
                             consents, approvals, waivers and notifications of
                             creditors, lessors and other nongovernmental
                             persons, in each case, in connection with the
                             execution and delivery of this Agreement, and the
                             consummation of all the transactions herein
                             contemplated.

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<PAGE>   51

        SECTION 3.07. PURCHASE OF CONTRACTS UPON BREACH BY SERVICER.

        The Servicer or the Issuer shall inform the other party and the
Indenture Trustee and the Insurer promptly, in writing, upon the discovery of
any breach of the covenants, representations and warranties set forth in Section
3.06 or of the covenants set forth in Sections 3.02 or 3.05. Unless the breach
shall have been cured within 30 days following such discovery or receipt of
notice of such breach, the Servicer shall purchase any Contract materially and
adversely affected by such breach from the Issuer. As consideration for the
Contract, the Servicer shall remit the Purchase Amount on the Business Day
preceding the Servicer Report Date next succeeding the end of such 30-day cure
period in the manner specified in Section 4.02(a). The sole remedy of the
Issuer, the Indenture Trustee, or the Noteholders with respect to a breach of
Section 3.02, 3.05 or 3.06 shall be to require the Servicer to purchase
Contracts pursuant to this Section 3.07; provided, however, that the Servicer
shall indemnify the Owner Trustee, the Indenture Trustee, the Insurer, the
Issuer, the Custodian and the Noteholders against all costs, expenses, losses
damages, claims and liabilities, including reasonable fees and expenses of
counsel, which may be asserted against or incurred by any of them as a result of
third-party claims arising out of the events or facts giving rise to such
breach.

        Any successor Servicer appointed pursuant to Section 7.02 shall not be
obligated to purchase Contracts pursuant to this Section 3.07 with respect to
any breaches by any prior Servicer.

        SECTION 3.08. SERVICING COMPENSATION.

        As compensation for the performance of its obligations under this
Agreement and subject to the terms of this Section, the Servicer shall be
entitled to receive on each Distribution Date the Servicing Fee in respect of
each Contract that was Outstanding at the beginning of the Collection Period
ending immediately prior to such Distribution Date; provided, however, that with
respect to the first Distribution Date the Servicer will be entitled to receive
the Servicing Fee in respect of each Outstanding Initial Contract as of the
Initial Cut-Off Date. As servicing compensation in addition to the Servicing
Fee, the Servicer shall be entitled (i) to retain all late payment charges,
extension fees and similar items paid in respect of Contracts, (ii) to receive,
in respect of each Rule of 78's Contract that is prepaid in full prior to its
Maturity Date, the amount by which the outstanding principal balance of such
Contract (determined in accordance with the Rule of 78's Method) exceeds the
Principal Balance of such Contract at the time of such prepayment and (iii) to
receive all investment earnings on funds credited to the Collection Account and
the Payahead Account; provided, however, that the Servicer agrees that each
amount payable to it pursuant to clause (ii) of this Section shall be deposited
in the Spread Account and applied in accordance with the Insurance Agreement.
The Servicer shall pay all expenses incurred by it in connection with its
servicing activities hereunder and shall not be entitled to reimbursement of
such expenses except to the extent provided in Section 3.03.

        SECTION 3.09. REPORTING BY THE SERVICER.

        (a) No later than 3:00 p.m. New York City time on each Servicer Report
Date, the Servicer shall deliver (by telex, facsimile, electronic transmission,
first class mail, overnight courier or personal delivery) to the Issuer, the
Trust Agent, the Indenture Trustee and the Insurer a statement (the
"DISTRIBUTION DATE STATEMENT") setting forth with respect to the next succeeding
Distribution Date:

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<PAGE>   52

                      (i)    the Note Interest Distributable Amount for such
                             Distribution Date;

                      (ii)   the Note Principal Distributable Amount for such
                             Distribution Date and the portion of the Note
                             Principal Distributable Amount, if any,
                             constituting the Accelerated Principal
                             Distributable Amount;

                      (iii)  the Note Distributable Amount for such Distribution
                             Date;

                      (iv)   the Premium payable to the Insurer;

                      (v)    the amount to be on deposit in the Spread Account
                             on such Distribution Date, before and after giving
                             effect to deposits thereto and withdrawals
                             therefrom to be made in respect of such
                             Distribution Date;

                      (vi)   the amount of the withdrawal, if any, required to
                             be made from the Spread Account by the Indenture
                             Trustee pursuant to Section 4.04(b);

                      (vii)  the aggregate Servicing Fee with respect to the
                             Contracts for the related Collection Period;

                      (viii) the amount of fees paid to the Owner Trustee, the
                             Indenture Trustee and Trust Agent with respect to
                             the related Collection Period;

                      (ix)   the amount of any Note Interest Carryover Shortfall
                             and Note Principal Carryover Shortfall on such
                             Distribution Date and the change in such amounts
                             from those with respect to the immediately
                             preceding Distribution Date;

                      (x)    the number of, and aggregate amount of, monthly
                             principal and interest payments due on the
                             Contracts which are delinquent as of the end of the
                             related Collection Period presented on a 30-day,
                             60-day and 90-day basis;

                      (xi)   the Net Collections and the Policy Claim Amount, if
                             any, for such Distribution Date;

                      (xii)  the aggregate amount of Liquidation Proceeds
                             received for Defaulted Contracts;

                      (xiii) the net credit losses and Cram Down Losses for the
                             Collection Period;

                      (xiv)  the number and net outstanding balance of Contracts
                             for which the Financed Vehicle has been
                             repossessed;

                      (xv)   the Pool Balance;

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<PAGE>   53

                      (xvi)  for each Distribution Date occurring during and
                             immediately following the end of the Funding
                             Period, the amount on deposit in each of the
                             Prefunding Account and the Capitalized Interest
                             Account on such Distribution Date, before and after
                             giving effect to withdrawals therefrom to be made
                             in respect of such Distribution Date; and

                      (xvii) for the Mandatory Partial Redemption Date, the
                             Mandatory Partial Redemption Amount, if any.

Each such Distribution Date Statement shall be accompanied by an Officers'
Certificate of the Servicer, which Officers' Certificate shall state that the
computations reflected in such statement were made in conformity with the
requirements of this Agreement.

        (b) On each Servicer Report Date, the Servicer shall deliver to the
Issuer, the Trust Agent, the Indenture Trustee and the Insurer a report, in
respect of the immediately preceding Collection Period, setting forth the
following:

                      (i)    the aggregate amount, if any, paid by or due from
                             it for the purchases of Contracts which the Seller
                             or the Servicer has become obligated to repurchase
                             or purchase pursuant to Sections 2.03 or 3.07;

                      (ii)   the net amount of funds which have been deposited
                             in or credited to the Collection Account or the
                             Payahead Account in respect of such Collection
                             Period (including amounts, if any, collected during
                             the next preceding Collection Period and deposited
                             in the Payahead Account pursuant to Section 4.02)
                             after giving effect to all permitted deductions
                             therefrom pursuant to Section 4.02;

                      (iii)  with respect to each Contract that became a
                             Liquidated Contract during the Collection Period,
                             the following information:

                      (A)    its Contract Number;

                      (B) the effective date as of which such Contract became a
               Liquidated Contract;

                      (C) its Monthly P&I and Principal Balance as of the close
               of business on the last day of the preceding Collection Period
               (or as of the Closing Date in the case of the first Distribution
               Date); and

                      (D) if less than 100% of the outstanding principal balance
               of and accrued and unpaid interest was recovered on such
               Liquidated Contract, the amount of the Net Liquidation Proceeds
               or Net Insurance Proceeds;

                      (iv)   with respect to each Contract which was the subject
                             of a Full Prepayment during such Collection Period,
                             the following information:

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<PAGE>   54

                      (A)    its Contract Number; and

                      (B)    the date of such Full Prepayment;

                      (v)    the Contract Numbers, Monthly P&I, Principal
                             Balances and Maturity Dates of all Contracts which
                             became Defaulted Contracts during such Collection
                             Period;

                      (vi)   any other information relating to the Contracts
                             reasonably requested by the Owner Trustee, the
                             Trust Agent, the Indenture Trustee or the Insurer;

                      (vii)  the amount of Net Liquidation Proceeds and Net
                             Insurance Proceeds which have been deposited in or
                             credited to the Collection Account in respect of
                             the Collection Period ending immediately prior to
                             such Servicer Report Date and the cumulative amount
                             of Net Liquidation Proceeds and Net Insurance
                             Proceeds deposited in or credited to the Collection
                             Account during the preceding Collection Periods;

                      (viii) with respect to each Distribution Date during and
                             immediately following the end of the Funding
                             Period, the Capitalized Interest Amount, if any,
                             with respect to the related Collection Period and
                             the amount, if any, withdrawn from the Capitalized
                             Interest Account pursuant to this Agreement;

                      (ix)   during the Funding Period, the remaining balance in
                             the Prefunding Account; and

                      (x)    for the Mandatory Partial Redemption Date, the
                             Mandatory Partial Redemption Amount, if any.

        SECTION 3.10. ANNUAL STATEMENT AS TO COMPLIANCE.

        (a) The Servicer shall deliver to the Issuer, the Trust Agent, the
Indenture Trustee and the Insurer, on or before March 31, 2001 and on or before
March 31 of each fiscal year thereafter, an Officers' Certificate of the
Servicer stating that (i) a review of the activities of the Servicer during the
preceding fiscal year (since the Closing Date in the case of the first of such
Officers' Certificates required to be delivered) and of its performance under
this Agreement has been made under such officers' supervision and (ii) to the
best of such officers' knowledge, based on such review, the Servicer has
fulfilled all its obligations under this Agreement throughout such year and that
no default under this Agreement has occurred and is continuing, or, if there has
been a default in the fulfillment of any such obligation, specifying each such
default known to such officer and the nature and status thereof.

        (b) The Servicer shall deliver to the Issuer, the Trust Agent, the
Indenture Trustee, the Insurer and each Rating Agency promptly after having
obtained knowledge thereof, but in no event

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<PAGE>   55

later than five Business Days thereafter, an Officer's Certificate specifying
any event which with the giving of notice or lapse of time, or both, would
become a Servicer Default under Section 7.01.

        SECTION 3.11. ANNUAL INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT'S REPORT.

        On or before March 31, 2001 and on or before March 31 of each fiscal
year thereafter, the Servicer at its expense shall cause a firm of nationally
recognized independent certified public accountants (who may also render other
services to the Servicer) to furnish a report to the Issuer, the Trust Agent,
the Indenture Trustee and the Insurer to the effect that (i) they have audited
the balance sheet of the Servicer as of the last day of said fiscal year and the
related statements of operations, retained earnings and cash flows for such
fiscal year and have issued an opinion thereon, specifying the date thereof,
(ii) they have also reviewed the reports delivered by the Servicer pursuant to
Section 3.09(b) and certain other documents and the records relating to the
servicing of the Contracts and the distributions on the Notes under this
Agreement, (iii) their audit and review as described under clauses (i) and (ii)
above was made in accordance with generally accepted auditing standards and
accordingly included such tests of the accounting records and such other
auditing procedures as they considered necessary in the circumstances, and (iv)
their audits and reviews described under clauses (i) and (ii) above disclosed no
exceptions which, in their opinion, were material, relating to the servicing of
such Contracts in accordance with this Agreement and the making of distributions
on the Notes in accordance with this Agreement, or, if any such exceptions were
disclosed thereby, setting forth those exceptions which, in their opinion, were
material.

        SECTION 3.12. ACCESS TO CERTAIN DOCUMENTATION AND INFORMATION REGARDING
                      CONTRACTS.

        If the Servicer is acting as Custodian, the Servicer shall provide to
the Noteholders, the Issuer, the Owner Trustee, the Trust Agent, the Indenture
Trustee and the Insurer reasonable access to the Contract Files and Contract
Documents. Access shall be afforded without charge, but only upon reasonable
request and during normal business hours at designated offices of the Servicer.
Nothing in this Section shall affect the obligation of the Servicer to observe
any applicable law prohibiting disclosure of information regarding the Obligors,
and the failure of the Servicer to provide access to information as a result of
such obligation shall not constitute a breach of this Section.

        SECTION 3.13. FIDELITY BOND.

        The Servicer shall maintain a fidelity bond in such form and amount as
is customary for banks acting as custodian of funds and documents in respect of
mortgage loans or consumer contracts on behalf of institutional investors.

        SECTION 3.14. INDEMNIFICATION; THIRD PARTY CLAIMS.

        Subject to Section 7.02, the Servicer agrees to indemnify and hold the
Issuer, the Owner Trustee, the Trust Agent, the Indenture Trustee, the Insurer,
the Custodian and the Noteholders harmless against any and all claims, losses,
penalties, fines, forfeitures, reasonable legal fees and related costs,
judgments, and any reasonable other costs, fees and expenses that the Issuer,
the Owner Trustee, the Trust Agent, the Indenture Trustee, the Insurer, the
Custodian or Noteholders may sustain because of the failure of the Servicer to
perform its duties and service the Contracts in

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<PAGE>   56

compliance with the terms of this Agreement. The Servicer shall (i) immediately
notify the Issuer and the Indenture Trustee in writing if a claim is made by a
third party with respect to the Contracts, (ii) assume, with the consent of the
Issuer, the Indenture Trustee and the Insurer, the defense of any such claim,
(iii) pay all expenses in connection therewith, including counsel fees, and (iv)
promptly pay, discharge and satisfy any judgment or decree which may be entered
with respect to such claim against the Servicer, the Issuer, the Owner Trustee,
the Trust Agent, the Indenture Trustee, the Insurer, the Custodian or the
Noteholders.

        SECTION 3.15. REPORTS TO NOTEHOLDERS AND THE RATING AGENCIES.

        (a) The Indenture Trustee at its own expense shall provide to each
Noteholder a copy of each Distribution Date Statement described in Section
3.09(a) concurrently with the delivery of the statement described in Section
4.05 below.

        (b) The Indenture Trustee shall provide to any Noteholder who so
requests in writing (addressed to the Corporate Trust Office of the Indenture
Trustee) a copy of the annual audit statement described in Section 3.10, or the
annual audit report described in Section 3.11. The Indenture Trustee may require
the Noteholder to pay a reasonable sum to cover the cost of the Indenture
Trustee's complying with such request.

        (c) The Indenture Trustee shall forward to the Rating Agencies and the
Insurer the statement to Noteholders described in Section 4.05 and any other
reports it may receive pursuant to this Agreement to (i) Standard & Poor's
Ratings Services, Asset-Backed Surveillance Group, 55 Water Street, New York,
New York 10041, (ii) Moody's Investors Service, Inc., ABS Monitoring Dept., 99
Church Street, 4th Floor, New York, New York 10007, and (iii) the address of the
Insurer at the address set forth in the Insurance Agreement.

        SECTION 3.16. ACCESS TO LIST OF NOTEHOLDERS' NAMES AND ADDRESSES.

        The Indenture Trustee shall furnish or cause to be furnished to the
Servicer, the Insurer and the Seller, within 15 days after receipt by the
Indenture Trustee of a written request therefor from the Servicer, the Insurer
or the Seller, a list, in such form as the Servicer, the Insurer or the Seller
may reasonably require, of the names and addresses of the Noteholders as of the
most recent Record Date. If three or more Noteholders, or one or more
Noteholders evidencing not less than 25% of the aggregate outstanding principal
balance of the Notes (hereinafter referred to as "Applicants"), apply in writing
to the Indenture Trustee, and such application states that the Applicants desire
to communicate with other Noteholders with respect to their rights hereunder or
under the Notes and such application is accompanied by a copy of the
communication that such Applicants propose to transmit, then the Indenture
Trustee shall, within five Business Days after the receipt of such application,
afford such Applicants access, during normal business hours, to the current list
of Noteholders. Each Noteholder, by receiving and holding a Note, agrees with
the Servicer, the Seller and the Indenture Trustee that none of the Servicer,
the Seller or the Indenture Trustee shall be held accountable by reason of the
disclosure of any such information as to its name and address hereunder,
regardless of the source from which such information was derived.

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<PAGE>   57

                                   ARTICLE IV

                         DISTRIBUTIONS; SPREAD ACCOUNT;
                            STATEMENTS TO NOTEHOLDERS

        SECTION 4.01. ESTABLISHMENT OF TRUST ACCOUNTS.

        (a) Prior to the Closing Date, the Servicer shall open, at a depository
institution (which may be the same depository institution which is acting in the
capacity as Indenture Trustee), the following accounts:

                      (i)    an account denominated "Collection Account - OT
                             2000-D, The Chase Manhattan Bank, Indenture
                             Trustee" (the "COLLECTION ACCOUNT");

                      (ii)   an account denominated "Payahead Account - OT
                             2000-D, The Chase Manhattan Bank, as agent" (the
                             "PAYAHEAD ACCOUNT");

                      (iii)  an account denominated "Spread Account - OT 2000-D,
                             The Chase Manhattan Bank, Indenture Trustee" (the
                             "SPREAD ACCOUNT");

                      (iv)   an account denominated "Note Distribution Account -
                             OT 2000-D, The Chase Manhattan Bank, Indenture
                             Trustee" (the "NOTE DISTRIBUTION ACCOUNT");

                      (v)    an account denominated "Prefunding Account - OT
                             2000-D, The Chase Manhattan Bank, Indenture
                             Trustee" (the "PREFUNDING ACCOUNT"); and

                      (vi)   an account denominated "Capitalized Interest
                             Account - OT 2000-D, The Chase Manhattan Bank,
                             Indenture Trustee" (the "CAPITALIZED INTEREST
                             ACCOUNT").

        In addition, the Indenture Trustee shall establish a trust account to be
maintained in the Corporate Trust Office of the Indenture Trustee denominated
"Payment Account - OT 2000-D, The Chase Manhattan Bank, Indenture Trustee" (the
"PAYMENT ACCOUNT" and, together with the accounts described in clauses (i)
through (vi) above, the "TRUST ACCOUNTS"). The Trust Accounts shall be Eligible
Accounts (subject to the requirement that the Payment Account must be maintained
as provided in the immediately preceding sentence) and relate solely to the
Notes and to the Contracts and, if applicable, the related Eligible Investments.
The location and account numbers of the Trust Accounts as of the Closing Date
are set forth on Schedule II. The Servicer shall give the Issuer, the Owner
Trustee, the Trust Agent, the Indenture Trustee and the Insurer at least five
Business Days' written notice of any change in the location of any Trust Account
and any related account identification information. All amounts, financial
assets and investment property held in, deposited in or credited to, from time
to time, the Trust Accounts (other than the Payahead Account and investment
income credited to the Collection Account and the Capitalized Interest Account)
shall be part of the Trust Property and all amounts, financial assets and
investment property held in, deposited in or credited to, from time to time, the
Collection Account, the Spread Account, the

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<PAGE>   58

Prefunding Account and the Capitalized Interest Account shall be invested by the
Indenture Trustee in Eligible Investments pursuant to Section 4.01(c).

        (b) If as of the last day of a Collection Period a payment in an amount
less than the scheduled payment of Monthly P&I has been made for a Precomputed
Contract with respect to which amounts have been deposited in or credited to the
Payahead Account in a preceding Collection Period in accordance with Sections
3.01 and 4.02(a), the Servicer shall withdraw from the Payahead Account and
deposit into the Collection Account by the fifth Business Day preceding the
Distribution Date immediately succeeding such Collection Period the amount equal
to the difference between such scheduled payment of Monthly P&I and such actual
payment, to the extent available from amounts deposited in or credited to the
Payahead Account with respect to such Contract. Amounts on deposit in the
Payahead Account shall be invested by the depository institution maintaining the
Payahead Account upon the written direction of the Servicer in Eligible
Investments which mature not later than the fifth Business Day prior to the
Distribution Date to which such amounts relate, and any earnings on such
Eligible Investments shall be payable to the Servicer monthly. The Payahead
Account and all amounts on deposit therein or credited thereto shall not be
considered part of the Trust Property.

        (c) All funds in the Collection Account, the Spread Account, the
Prefunding Account and the Capitalized Interest Account shall be invested by the
Indenture Trustee (if the Indenture Trustee maintains the applicable account),
or on behalf of the Indenture Trustee by the depository institution maintaining
such account, in Eligible Investments only upon the written direction from the
Servicer or the Insurer, as described below. Subject to the limitations set
forth herein, the Servicer may direct the depository institution maintaining the
Collection Account, the Spread Account, the Prefunding Account and the
Capitalized Interest Account in writing (with a copy of such direction to the
Indenture Trustee, if the Indenture Trustee is not the applicable depository
institution) to invest funds in the Collection Account, the Spread Account, the
Prefunding Account and the Capitalized Interest Account in Eligible Investments;
provided that (i) in the absence of such directions from the Servicer, the
Insurer may so direct, and (ii) at any time during the continuance of a Servicer
Default, only the Insurer, or for so long as an Insurer Default shall have
occurred and be continuing, only the Issuer, may give such investment
directions. All such investments shall be in the name of the Indenture Trustee
for the benefit of the Noteholders. All income or other gain from investment of
monies deposited in or credited to the Collection Account shall be paid by the
depository institution maintaining the Collection Account to the Servicer
monthly. All income or other gain from investment of monies deposited in or
credited to the Spread Account, the Prefunding Account and the Capitalized
Interest Account shall be deposited in or credited to such account immediately
upon receipt, and any loss resulting from such investment shall be charged to
such account. The maximum permissible maturities of any investments of funds in
the Collection Account, the Spread Account and the Capitalized Interest Account
on any date shall not be later than the Servicer Report Date immediately
preceding the Distribution Date next succeeding the date of such investment;
provided, however, that if the Indenture Trustee is maintaining the applicable
account, such funds may be invested by the Indenture Trustee in Eligible
Investments of the entity that is serving as Indenture Trustee (or an entity
which meets the criteria in clauses (i)(b) or (i)(c) of the definition of
Eligible Account) that mature on the Business Day prior to such Distribution
Date. The maximum permissible maturity of any investments of funds in the
Prefunding Account on any date shall not be later than the next Business Day. No
investment in Eligible Investments may be sold prior to its maturity. The funds
on deposit in the Payment Account and the Note Distribution Account shall remain
uninvested.

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<PAGE>   59

        (d) In the absence of written direction as provided above, all funds
held in the Spread Account, the Collection Account, the Prefunding Account and
the Capitalized Interest Account shall remain uninvested. In addition, if the
applicable depository institution receives what it perceives to be conflicting
directions regarding the investment of funds in the Collection Account, the
Spread Account, the Prefunding Account or the Capitalized Interest Account, the
directions of the Insurer shall control unless an Insurer Default shall have
occurred and be continuing, in which case the directions of the Servicer shall
control unless a Servicer Default shall have occurred and be continuing, in
which case the directions of the Issuer shall control. In addition, the
Indenture Trustee shall not in any way be held liable by reason of any
insufficiency in any of the foregoing Trust Accounts held by or on behalf of the
Indenture Trustee resulting from any investment loss on any Eligible
Investments.

        SECTION 4.02. COLLECTIONS; TRANSFERS TO PAYAHEAD ACCOUNT;
                      REALIZATION UPON POLICY; NET DEPOSITS; TRANSFERS TO
                      PAYMENT ACCOUNT.

        (a) Subject to the last sentence of this Section 4.02(a), the Servicer
shall remit or credit all payments on a daily basis, within two Business Days of
receipt, by or on behalf of Obligors on the Contracts, and all Net Liquidation
Proceeds and Net Insurance Proceeds and other monies as required to the
Collection Account. Prior to the Servicer Report Date, amounts with respect to
Precomputed Contracts which are otherwise required to be deposited in or
credited to the Collection Account pursuant to the immediately preceding
sentence shall instead be deposited in or credited to the Payahead Account to
the extent that such amounts are installments of Monthly P&I which are due in a
Collection Period relating to a Distribution Date subsequent to the Distribution
Date immediately succeeding the date of receipt. The Servicer or the Seller, as
the case may be, each shall remit or credit to the Collection Account each
Purchase Amount to be remitted by it with respect to Purchased Contracts on the
Business Day preceding the Servicer Report Date next succeeding (i) the end of
the Collection Period in which the applicable Contract is repurchased by the
Seller pursuant to Section 2.03, in the case of the Seller or (ii) the last day
of the related cure period specified in Section 3.07, in the case of the
Servicer.

        (b) On the Servicer Report Date, the Servicer shall determine the Policy
Claim Amount, if any, which exists with respect to the related Distribution Date
and submit a Distribution Date Statement pursuant to Section 3.09.

        (c) The Indenture Trustee shall, no later than 12:00 p.m., New York City
time, on the third Business Day prior to each Distribution Date (based solely on
the information contained in the Distribution Date Statement, delivered on the
applicable Servicer Report Date), make a claim under the Policy for the Policy
Claim Amount, if any, for such Distribution Date by delivering to the Fiscal
Agent, with a copy to the Insurer, the Trust Agent and the Servicer, by hand
delivery, telex or facsimile transmission, a written notice (a "DEFICIENCY
NOTICE") specifying the Policy Claim Amount, if any, for such Distribution Date,
separately identifying the amount of the Policy Claim Amount payable in respect
of each Class of Notes. Each Deficiency Notice shall direct the Insurer to remit
such Policy Claim Amount to the Indenture Trustee for deposit in the Payment
Account. In making any such claim, the Indenture Trustee shall comply with all
the terms and conditions of the Policy. Upon receipt of the Policy Claim Amount,
the Indenture Trustee shall apply the portion thereof, if any, representing the
Deficiency Amount with respect to a Distribution Date as provided

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<PAGE>   60

in Section 4.03. Any amounts received by the Indenture Trustee under the Policy
that represent Preference Amounts shall be paid, in accordance with the Policy,
to the applicable Noteholder(s).

        (d) So long as Onyx is the Servicer, the Servicer may make deposits in
or credits to the Collection Account net of amounts to be paid to the Servicer
under this Agreement. Notwithstanding the foregoing, the Servicer shall maintain
the records and accounts for such deposits and credits on a gross basis.

        (e) On the Business Day immediately preceding each Distribution Date,
based solely on the Distribution Date Statement, the Servicer shall cause funds
equal to the amount of Net Collections available with respect to such
Distribution Date on deposit in the Collection Account to be withdrawn from the
Collection Account and deposited into the Payment Account to be distributed
pursuant to Section 4.03.

        SECTION 4.03. DISTRIBUTIONS.

        On each Distribution Date, based solely on the Distribution Date
Statement, the Indenture Trustee will apply the Net Collections available from
the Payment Account, along with any amounts deposited into the Payment Account
from the Prefunding Account and the Capitalized Interest Account, with respect
to such Distribution Date to make the following deposits and distributions in
the following amounts and order of priority:

                      (i)    to the Servicer, the Servicing Fee, including any
                             accrued and unpaid Servicing Fees with respect to
                             one or more prior Collection Periods;

                      (ii)   to the Indenture Trustee, the Owner Trustee and the
                             Trust Agent, any accrued and unpaid fees of the
                             Indenture Trustee, the Owner Trustee and the Trust
                             Agent, in each case to the extent such fees have
                             not been previously paid by the Servicer or the
                             Administrator;

                      (iii)  to the Note Distribution Account, the Note Interest
                             Distributable Amount to be paid to the Holders of
                             the Class A Notes at their respective Interest
                             Rates;

                      (iv)   to the Note Distribution Account, if such
                             Distribution Date is a Note Final Scheduled
                             Distribution Date for any Class of Notes, the Note
                             Principal Distributable Amount to the extent of the
                             remaining principal amount of such Class of Notes,
                             to be paid to the Holders of such Class of Notes;

                      (v)    if such Distribution Date is the Mandatory Partial
                             Redemption Date, to the Note Distribution Account,
                             the Mandatory Partial Redemption Amount, to be
                             distributed to the Holders of the Class A-1 Notes
                             if such amount is less than or equal to $50,000,
                             and to be distributed to the Holders of all Notes,
                             pro rata based on the then outstanding principal
                             balance of the Notes, if such amount exceeds
                             $50,000;

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<PAGE>   61

                      (vi)   to the Note Distribution Account, solely from Net
                             Collections (plus amounts transferred from the
                             Prefunding Account representing earnings from
                             investments therein and amounts transferred from
                             the Capitalized Interest Account, if any) remaining
                             after giving effect to the distributions described
                             in clauses (i) through (v) above, the remaining
                             Note Principal Distributable Amount (after giving
                             effect to the payment, if any, described in clause
                             (iv) above), to be paid first to the Holders of the
                             Class A-1 Notes until the principal amount of the
                             Class A-1 Notes has been reduced to zero, second,
                             to the Holders of the Class A-2 Notes until the
                             principal amount of the Class A-2 Notes has been
                             reduced to zero, third, to the Holders of the Class
                             A-3 Notes until the principal amount of the Class
                             A-3 Notes has been reduced to zero, and fourth, to
                             the Holders of the Class A-4 Notes until the
                             principal amount of the Class A-4 Notes has been
                             reduced to zero;

                      (vii)  to the Insurer, after giving effect to the
                             distributions described in clauses (i) through (vi)
                             above, any amounts, including the Premium, owing to
                             the Insurer under the Insurance Agreement;

                      (viii) to the Spread Account, after giving effect to the
                             distributions described in clauses (i) through
                             (vii) above, the amount, if any, required to
                             increase the amount therein to the Spread Account
                             Maximum for such Distribution Date; and

                      (ix)   any amounts remaining after distribution of the
                             Accelerated Principal Distributable Amount as part
                             of the Note Principal Distributable Amount, if
                             applicable, shall be deposited into the Spread
                             Account.

Any amounts deposited in the Payment Account pursuant to 4.04(b) with respect to
a Distribution Date and any amounts received by the Indenture Trustee as a
result of a claim under the Policy that represent the Deficiency Amount with
respect to such Distribution Date shall be applied by the Indenture Trustee
solely to make the deposits and distributions referred to in clauses (i) through
(iv) above, in that order of priority, but only to the extent that the Net
Collections (plus amounts transferred to the Payment Account from the Prefunding
Account, representing earnings from investments therein, and amounts transferred
to the Payment Account from the Capitalized Interest Account, if any) with
respect to such Distribution Date, after application as provided above, were
insufficient to make such deposit or distribution. In addition, if the Insurer
pays any amounts to the Indenture Trustee with respect to a Distribution Date in
connection with the Insurer's election to pay, as provided in the Policy, all or
a portion of any shortfalls in the amount of Net Collections (plus amounts
transferred to the Payment Account from the Prefunding Account, representing
earnings from investments therein, and amounts transferred to the Payment
Account from the Capitalized Interest Account, if any) with respect to such
Distribution Date available to distribute the amounts referred to in clause (vi)
above, the Indenture Trustee shall distribute the amounts so received from the
Insurer as provided in such clause.

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<PAGE>   62

        SECTION 4.04. SPREAD ACCOUNT.

        (a) The Spread Account will be held for the benefit of the Noteholders
and the Insurer.

        (b) On each Distribution Date, based solely on the Distribution Date
Statement, the Indenture Trustee shall withdraw funds from the Spread Account,
to the extent funds are on deposit therein, equal to the amount by which the sum
of the amounts set forth in Section 4.03, clauses (i) though (iv) with respect
to such Distribution Date exceeds the amount of Net Collections (plus amounts
transferred to the Payment Account from the Prefunding Account, representing
earnings from investments therein, and amounts transferred to the Payment
Account from the Capitalized Interest Account, if any) available with respect to
such Distribution Date. The Indenture Trustee shall deposit any such funds
withdrawn from the Spread Account into the Payment Account to be distributed
pursuant to Section 4.03. Funds shall also be withdrawn from the Spread Account
by the Indenture Trustee, as directed by the Insurer to reimburse the Insurer
for draws with respect to any Preference Amount. If the amount of cash on
deposit in the Spread Account on any Distribution Date (after giving effect to
all deposits thereto or withdrawals therefrom on such Distribution Date other
than withdrawals relating to distributions to be made pursuant to this sentence)
exceeds the maximum amount of the cash component of the Spread Account, as
specified in the definition of "Spread Account Maximum" set forth in the
Insurance Agreement, the Indenture Trustee shall, based solely on the
Distribution Date Statement, distribute any excess first, to the Insurer, to the
extent of any amounts owing to the Insurer pursuant to the Insurance Agreement,
and second, to the Note Distribution Account for distribution to holders of the
Residual Interests. Upon any such distributions to the Insurer or the holders of
the Residual Interests, the Noteholders will have no further rights in, or
claims to, such amounts.

        (c) Amounts held in the Spread Account shall be invested in the manner
specified in Section 4.01(c), and such investments shall be made in accordance
with written instructions from the Servicer; provided that, if the Indenture
Trustee does not receive any such written instructions prior to any date on
which an investment decision must be made, the funds held in the Spread Account
will remain uninvested. All such investments shall be made in the name of the
Indenture Trustee or its nominee and such investments shall not be sold or
disposed of prior to their maturity.

        (d) Ninety-one (91) days following the termination of the Trust pursuant
to Section 9.01 of the Trust Agreement, any amounts on deposit in the Spread
Account, after payments of amounts due to the Noteholders or the Insurer
pursuant to the Insurance Agreement, shall be paid to the holders of the
Residual Interests; provided, however, that if an insolvency event of the type
described in Section 7.01(d) or (e) with respect to any of the Seller, the
Servicer, the Indenture Trustee or the Noteholders (collectively, the "POTENTIAL
PREFERENCE PARTIES") shall have occurred during the period ending ninety-one
(91) days after payment in full to the Noteholders of all amounts payable with
respect to the Notes and the payment in full of the Repayment Amount then the
funds on deposit in the Spread Account shall be retained until the date all
applicable statute of limitation periods with respect to all applicable
preference actions and periods have expired and during which time no preference
action or similar proceeding at law or in equity is commenced, at which time,
the Insurer shall direct the Indenture Trustee in writing to release all amounts
in the Spread Account to the holders of the Residual Interests, pro rata in
proportion to percentage portion of the Residual Interest (the "PERCENTAGE
INTEREST") of each such holder of the Residual Interests. In the event that any
preference action referred to above is commenced during any applicable statute
of limitations period, funds deposited in the Spread Account shall be retained
until the date on which there is a final

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<PAGE>   63

determination by a court of competent jurisdiction as to whether any payment or
payments made pursuant to this Agreement, the Indenture, the Indemnification
Agreement or the Insurance Agreement is recoverable from any of the Insurer or
the Noteholders. If it is so determined that a payment is so recoverable, funds
deposited in the Spread Account shall be applied by the Indenture Trustee at the
written direction of the Insurer first to pay any and all such claims with
respect to such preference actions as the Noteholders and the Insurer may be
required to pay and then to the holders of the Residual Interests, pro rata in
proportion to their Percentage Interests. If it is determined that any such
payment is not recoverable, the Insurer shall direct the Indenture Trustee in
writing to release all amounts on deposit in the Spread Account to the holders
of the Residual Interests, pro rata in proportion to their Percentage Interests,
upon receipt by the Insurer of both a final order determining that such payments
are not recoverable and an opinion of nationally recognized bankruptcy counsel
to the effect that such appeal is final and not subject to appeal. For purposes
of compliance with this Section 4.04(d), the Indenture Trustee shall be entitled
to rely on written instructions from the Insurer.

        (e) In the event any of the holders of the Residual Interests seek to
have the amounts remaining on deposit in the Spread Account released to holders
of the Residual Interests prior to the expiration of the ninety-one (91) day
period specified in Section 4.04(d) above, then, if (i) amounts payable with
respect to the Notes have been fully paid to the Noteholders, (ii) the Repayment
Amount and all other amounts owing to the Insurer pursuant to the Insurance
Agreement have been paid in full, (iii) no case or proceeding described in
Sections 7.01(d) or (e) has occurred with respect to the Potential Preference
Parties, and (iv) either (A) the long term unsecured debt of the Seller and the
Servicer is rated "BBB-" or better by Standard & Poor's and "Baa3" or better by
Moody's, (B) the Insurer shall have received a favorable opinion or opinions,
satisfactory in form and substance to the Insurer, from counsel to Onyx, the
Seller and the Servicer, to the effect that in the event a case or proceeding
described in Sections 7.01(d) or (e) were to occur with respect to the Potential
Preference Parties, no payment pursuant to this Agreement or the Insurance
Agreement would be recoverable from either the Insurer or the Noteholders, and
such other matters as the Insurer may reasonably request, or (C) the Insurer, in
its sole discretion, elects to have the remaining amounts on deposit in the
Spread Account paid to the holders of the Residual Interests, then, in any such
event, all remaining amounts on deposit in the Spread Account shall be paid to
the holders of the Residual Interests, pro rata in proportion to their
Percentage Interests.

        SECTION 4.05. STATEMENTS TO NOTEHOLDERS.

        (a) On each Distribution Date, the Indenture Trustee shall include with
each distribution to each Noteholder of record as of the related Record Date, a
statement, prepared by the Servicer, based on the information in the
Distribution Date Statement furnished pursuant to Section 3.09, setting forth
for such Distribution Date the following information as of the related Record
Date or such Distribution Date, as the case may be:

                      (i)    the amount of such distribution allocable to
                             principal (stated separately for each Class of
                             Notes), separately identifying the aggregate amount
                             included therein of any (i) Full Prepayments of
                             principal on Precomputed Contracts and (ii) Full
                             Prepayments and partial prepayments of principal on
                             Simple Interest Contracts;

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<PAGE>   64

                      (ii)   the amount of such distribution allocable to
                             interest (stated separately for each Class of
                             Notes);

                      (iii)  the Note Distributable Amount for such Distribution
                             Date;

                      (iv)   the Premium payable to the Insurer;

                      (v)    the amount to be on deposit in the Spread Account
                             on such Distribution Date, before and after giving
                             effect to deposits thereto and withdrawals
                             therefrom to be made in respect of such
                             Distribution Date;

                      (vi)   the amount of the withdrawal, if any, required to
                             be made from the Spread Account by the Indenture
                             Trustee, specifying as to whether such amount is to
                             be (A) deposited into the Payment Account, (B) paid
                             to the Insurer or (C) deposited into the Note
                             Distribution Account for distribution to the
                             holders of the Residual Interests pursuant to
                             Section 4.04;

                      (vii)  the aggregate Servicing Fee with respect to the
                             Contracts for the related Collection Period;

                      (viii) the amount of fees paid to the Owner Trustee, the
                             Trust Agent and the Indenture Trustee, with respect
                             to the related Collection Period;

                      (ix)   the amount of any Note Interest Carryover Shortfall
                             and Note Principal Carryover Shortfall on such
                             Distribution Date and the change in such amounts
                             from those with respect to the immediately
                             preceding Distribution Date;

                      (x)    the number of, and aggregate amount of, monthly
                             principal and interest payments due on the
                             Contracts which are delinquent as of the end of the
                             related Collection Period presented on a 30-day,
                             60-day and 90-day basis;

                      (xi)   the Net Collections and the Policy Claim Amount, if
                             any, for such Distribution Date;

                      (xii)  the aggregate amount of Liquidation Proceeds
                             received for Defaulted Contracts;

                      (xiii) the net credit losses and Cram Down Losses for the
                             Collection Period;

                      (xiv)  the number and net outstanding balance of Contracts
                             for which the Financed Vehicle has been
                             repossessed;

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<PAGE>   65

                      (xv)   the Pool Balance and the Note Pool Factor for each
                             Class of Notes as of such Distribution Date after
                             giving effect to the distribution made on such
                             Distribution Date;

                      (xvi)  on each Distribution Date occurring during and
                             immediately following the end of the Funding
                             Period, the amount on deposit in each of the
                             Prefunding Account and the Capitalized Interest
                             Account on such Distribution Date, before and after
                             giving effect to withdrawals therefrom to be made
                             in respect of such Distribution Date;

                      (xvii) on each Distribution Date occurring during and
                             immediately following the end of the Funding
                             Period, the amounts of investment earnings and
                             other amounts transferred from the Prefunding
                             Account and the amounts transferred from the
                             Capitalized Interest Account to the Payment
                             Account; and

                     (xviii) on the Distribution Date immediately following the
                             end of the Funding Period, the Mandatory Partial
                             Redemption Amount.

Each amount set forth pursuant to subclauses (i) or (ii) above shall be
expressed as a dollar amount per $1,000.00 of original principal amount of a
Note.

        (b) Within a reasonable period of time after the end of each calendar
year, but not later than the latest date permitted by law, the Servicer shall
prepare and furnish to the Issuer, the Indenture Trustee and each Paying Agent,
and the Paying Agent for the Notes and the Paying Agent for the Residual
Interest Instruments shall furnish to each Person who on any Record Date during
such calendar year shall have been a Holder of a Note or a Residual Interest
Instrument, respectively, a statement or statements containing the sum of the
amounts set forth in clauses (i) and (ii) above for such calendar year and such
other information as is reasonably necessary for the preparation of such
Person's federal income tax return in respect of the Notes or Residual Interest
Instruments or, in the event such Person shall have been a Holder of a Note or a
Residual Interest Instrument during a portion of such calendar year, for the
applicable portion of such year, for the purposes of such Noteholder's or
Residual Interestholder's preparation of federal income tax returns.

        SECTION 4.06. CAPITALIZED INTEREST ACCOUNT.

        (a) Pursuant to Section 4.01, the Servicer shall establish the
Capitalized Interest Account in the name of the Indenture Trustee for the
benefit of the Noteholders and the Insurer.

        (b) On the Closing Date, the Seller shall deposit the Initial
Capitalized Interest Amount into the Capitalized Interest Account.

        (c) On the Business Day immediately preceding each Distribution Date,
based solely on the Distribution Date Statement, the Indenture Trustee shall
withdraw or cause to be withdrawn funds equal to the Capitalized Interest Amount
with respect to such Distribution Date from amounts on deposit in the
Capitalized Interest Account and deposit or cause to be deposited such funds
into the Payment Account, to be distributed pursuant to Section 4.03.

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<PAGE>   66

        (d) On each Distribution Date during and immediately following the
Funding Period, based on the written instructions of the Servicer, the Indenture
Trustee shall release to the Seller from the Capitalized Interest Account an
amount such that the balance remaining in the Capitalized Interest Account after
such release and after any transfer of the Capitalized Interest Amount to the
Payment Account pursuant to Section 4.06(c) will equal the Maximum Capitalized
Interest Amount. On the Distribution Date following the Mandatory Partial
Redemption Date, the Indenture Trustee shall release to the Seller any amounts
remaining on deposit in the Capitalized Interest Account after giving effect to
the required distribution to Noteholders on such date.

        SECTION 4.07. PREFUNDING ACCOUNT.

        (a) Pursuant to Section 4.01, the Servicer shall establish the
Prefunding Account in the name of the Indenture Trustee for the benefit of the
Noteholders and the Insurer.

        (b) On the Closing Date, the Seller shall deposit into the Prefunding
Account an amount equal to the Prefunded Amount from the proceeds of the sale of
the Notes. Provided the Indenture Trustee has received the related Transfer
Certificate on the Business Day immediately preceding the Prefunding Transfer
Date, the Indenture Trustee shall withdraw from the Prefunding Account an amount
equal to the Outstanding Principal Balance of the Prefunded Contracts (as
indicated in the Transfer Certificate and determined as of the related
Prefunding Cut-Off Date) that have been delivered to the Custodian, on behalf of
the Indenture Trustee, and wire such amount by federal funds to the Seller's
account listed in the Transfer Certificate relating to such Prefunding Transfer
Date by 1:00 p.m. California time on such Prefunding Transfer Date.

        (c) If any amount remains on deposit in the Prefunding Account on the
last day of the Funding Period, such amount shall be invested at the written
instruction of the Servicer in a single Eligible Investment which matures on the
Business Day preceding the Mandatory Partial Redemption Date; provided, that in
the event no such Eligible Investment is available, such amount shall not be
invested but shall be held in the Prefunding Account uninvested.

        (d) On the Business Day preceding the Mandatory Partial Redemption Date,
the Servicer shall instruct the Indenture Trustee in writing to withdraw the
Mandatory Partial Redemption Amount from the Prefunding Account and deposit such
amount in the Payment Account on such Business Day.

        (e) On the Business Day immediately preceding each Distribution Date
following a Collection Period during which amounts are on deposit in the
Prefunding Account, the Indenture Trustee shall withdraw the earnings on all
investments in the Prefunding Account and deposit such amount in the Payment
Account on such Business Day.

        SECTION 4.08. REQUIREMENTS RELATING TO PREFUNDING ACCOUNT.

        The transfer of Prefunded Contracts to the Trust shall be subject to
each of, and Prefunded Contracts shall not be transferred to the Trust to the
extent such transfer would result in the violation of any of, the following
restrictions and limitations, as well as the conditions set forth in Section
2.01(c):

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<PAGE>   67

        (a) The period during which Prefunded Contracts may be transferred to
the Trust (the "FUNDING PERIOD") shall begin on the Closing Date and end no
later than the earliest to occur of: (i) the date on which the balance in the
Prefunding Account is less than $2,500.00; (ii) the date on which a Servicer
Default or an Indenture Event of Default occurs; or (iii) the close of business
on February 13, 2001.

        (b) The aggregate principal amount of the Prefunded Contracts shall not
exceed 25% of the principal balance of the Notes offered as of the Closing Date.

        (c) Each of the Prefunded Contracts shall meet the same terms and
conditions for eligibility as those of the Funded Contracts; provided, that the
terms and conditions for determining the eligibility of a Prefunded Contract may
be changed if such changes receive prior approval by the Insurer, with notice
given to each Rating Agency.

        (d) The transfer of Prefunded Contracts shall not result in any Note
receiving a lower credit rating from a Rating Agency upon termination of the
Funding Period than the rating obtained as of the time of the initial issuance
of the Notes by the Trust without regard to the Policy.

                                    ARTICLE V

                                   THE SELLER

        SECTION 5.01. LIABILITY OF SELLER; INDEMNITIES.

        The Seller shall be liable in accordance herewith only to the extent of
the obligations specifically undertaken by the Seller under this Agreement.

        SECTION 5.02. MERGER OR CONSOLIDATION OF, OR ASSUMPTION OF THE
                      OBLIGATIONS OF, SELLER; CERTAIN LIMITATIONS.

        The Seller shall not consolidate with or merge into any other
corporation or convey, transfer or lease substantially all of its assets as an
entirety to any Person unless the corporation formed by such consolidation or
into which the Seller has merged or the Person which acquires by conveyance,
transfer or lease substantially all the assets of the Seller as an entirety, can
lawfully perform the obligations of the Seller hereunder and executes and
delivers to the Issuer, the Trust Agent, the Indenture Trustee and the Insurer
an agreement in form and substance reasonably satisfactory to the Issuer, the
Trust Agent, the Indenture Trustee and the Insurer, which contains an assumption
by such successor entity of the due and punctual performance and observance of
each covenant and condition to be performed or observed by the Seller under this
Agreement.

        SECTION 5.03. LIMITATION ON LIABILITY OF SELLER AND OTHERS.

        The Seller and any director or officer or employee or agent of the
Seller may rely in good faith on any document of any kind, prima facie properly
executed and submitted by any Person respecting any matters arising hereunder.
The Seller shall not be under any obligation to appear in, prosecute or defend
any legal action that shall not be incidental to its obligations under this
Agreement, and that in its opinion may involve it in any expense or liability.

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<PAGE>   68

        SECTION 5.04. SELLER NOT TO RESIGN.

        Subject to the provisions of Section 5.02, the Seller shall not resign
from the obligations and duties hereby imposed on it as Seller under this
Agreement.

        SECTION 5.05. SELLER MAY OWN NOTES.

        The Seller and any Affiliate thereof may in its individual or any other
capacity become the owner or pledgee of Notes with the same rights as it would
have if it were not the Seller or an Affiliate thereof, except as expressly
provided herein or in any Basic Document. Notes so owned by or pledged to the
Seller or such Affiliate shall have an equal and proportionate benefit under the
provisions of this Agreement, without preference, priority or distinction as
among all Classes of the Notes.

                                   ARTICLE VI

                                  THE SERVICER

        SECTION 6.01. LIABILITY OF SERVICER; INDEMNITIES.

        Subject to Section 7.02, the Servicer shall be liable in accordance
herewith only to the extent of the obligations specifically undertaken by the
Servicer under this Agreement. Such obligations shall include the following:

        (a) The Servicer shall defend, indemnify and hold harmless the Issuer,
the Owner Trustee, the Trust Agent, the Indenture Trustee, the Insurer, the
Custodian, their respective officers, directors, agents and employees, and the
Noteholders from and against any and all costs, expenses, losses, damages,
claims and liabilities, arising out of or resulting from the use, ownership or
operation by the Servicer or any Affiliate thereof of a Financed Vehicle.

        (b) The Servicer shall indemnify, defend and hold harmless the Issuer,
the Owner Trustee, the Trust Agent, the Indenture Trustee, the Insurer, the
Custodian (if the Custodian is not the Servicer) and their respective officers,
directors, agents and employees from and against any taxes that may at any time
be asserted against the Issuer, the Owner Trustee, the Trust Agent, the
Indenture Trustee, the Insurer or the Custodian with respect to the transactions
contemplated herein and in the other Basic Documents, including, without
limitation, any sales, gross receipts, general corporation, tangible personal
property, privilege or license taxes (but, not including (i) in the case of the
Issuer, any taxes asserted with respect to, and as of the date of, the sale of
the Contracts to the Issuer or the issuance and original sale of the Notes, or
(ii) any taxes asserted with respect to ownership of the Contracts, or (iii) any
federal or other income taxes arising out of distributions on the Notes) and
costs and expenses in defending against the same.

        (c) The Servicer shall indemnify, defend and hold harmless the Issuer,
the Owner Trustee, the Trust Agent, the Indenture Trustee, the Insurer, the
Custodian (if the Custodian is not the Servicer), their respective officers,
directors, agents and employees and the Noteholders from and against any and all
costs, expenses, losses, claims, damages and liabilities to the extent that such
cost, expense, loss, claim, damage or liability arose out of, or was imposed
upon any such Person

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<PAGE>   69

through, the negligence (other than errors in judgment), willful misfeasance or
bad faith of the Servicer or the Seller in the performance of their respective
duties under this Agreement.

        (d) The Servicer shall indemnify, defend and hold harmless the Issuer,
the Owner Trustee, the Trust Agent, the Indenture Trustee, the Insurer, the
Custodian (if the Custodian is not the Servicer) and their respective officers,
directors, agents and employees from and against any and all costs, expenses,
losses, claims, damages and liabilities arising out of or incurred in connection
with the acceptance or performance of the trusts and duties herein and, in the
case of the Owner Trustee and the Trust Agent, in the Trust Agreement and, in
the case of the Indenture Trustee, in the Indenture, except to the extent that
such cost, expense, loss, claim, damage or liability (i) shall be due to the
willful misfeasance, bad faith or negligence of the Owner Trustee, the Trust
Agent, the Indenture Trustee, the Insurer or the Custodian, as the case may be;
(ii) relates to any tax other than the taxes with respect to which either the
Servicer shall be required to indemnify the Issuer, the Owner Trustee, the Trust
Agent, the Indenture Trustee, the Insurer or the Custodian; or (iii) shall arise
from the Trust Agent's, the Owner Trustee's or the Indenture Trustee's breach of
any of their respective representations or warranties set forth herein, in the
Trust Agreement or in the Indenture.

        (e) In addition to the indemnification obligations set forth above, and
without duplication, the Servicer shall indemnify the Owner Trustee, the Trust
Agent, each co-trustee and their respective officers, directors, employees,
successors, assigns, agents and servants from and against any and all
liabilities, obligations, losses, damages, taxes, claims, actions and suits, and
any and all reasonable costs, expenses and disbursements (including reasonable
legal fees and expenses) of any kind and nature whatsoever in any way relating
to or arising out of the Trust Agreement, the other Basic Documents, the Trust
Estate (as defined in the Trust Agreement), the administration of the Trust
Estate or the action or inaction of the Owner Trustee, Trust Agent or any
co-trustee under the Trust Agreement, except to the extent that such
liabilities, obligations, losses, damages, taxes, claims, actions, suits, costs,
expenses and disbursements (i) shall be due to the willful misconduct or
negligence of the Owner Trustee, the Trust Agent, a co-trustee or such other
party seeking indemnification, as the case may be, or (ii) shall arise from the
inaccuracy of any representation or warranty contained in Section 7.03 of the
Trust Agreement expressly made by the Owner Trustee or the Trust Agent, as the
case may be. In the event of any claim, action or proceeding for which indemnity
will be sought pursuant to this Section 6.01(e), the choice of legal counsel by
the Owner Trustee or the Trust Agent, as applicable, shall be subject to the
approval of the Servicer, which approval shall not be unreasonably withheld.

        (f) Indemnification under this Section shall include, without
limitation, reasonable fees and expenses of counsel and expenses of litigation.
If the Servicer shall have made any indemnity payments pursuant to this section
and the recipient thereafter collects any of such amounts from others, the
recipient Person shall promptly repay such amounts to the Servicer, without
interest.

        (g) This Section 6.01 shall survive the resignation or removal of the
Owner Trustee, the Trust Agent, the Custodian and the Indenture Trustee and the
termination of this Agreement, the Trust Agreement and the Indenture.

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<PAGE>   70

        SECTION 6.02. CORPORATE EXISTENCE; STATUS AS SERVICER; MERGER.

        (a) The Servicer shall keep in full effect its existence, rights and
franchises as a corporation incorporated under the laws of the State of
Delaware, and will obtain and preserve its qualification to do business as a
foreign corporation in each jurisdiction in which such qualification is or shall
be necessary to protect the validity and enforceability of the Contract
Documents and this Agreement.

        (b) The Servicer shall not consolidate with or merge into any other
corporation or convey, transfer or lease all or substantially all of its assets
as an entirety to any Person or engage in any corporate transaction pursuant to
which the surviving or successor entity is not Onyx Acceptance Corporation,
unless (i) such entity is at least rated investment grade by the Rating
Agencies, (ii) the Insurer shall have consented thereto in writing and (iii)
such entity executes and delivers to the Issuer, the Indenture Trustee and the
Insurer an agreement in form and substance reasonably satisfactory to the
Issuer, the Indenture Trustee and the Insurer, which contains an assumption by
such successor entity of the due and punctual performance and observance of each
covenant and condition to be performed or observed by the Servicer under this
Agreement.

        SECTION 6.03. PERFORMANCE OF OBLIGATIONS.

        (a) The Servicer shall punctually perform and observe all of its
obligations and agreements contained in this Agreement.

        (b) The Servicer shall not take any action, or permit any action to be
taken by others, which would excuse any person from any of its covenants or
obligations under any of the Contract Documents or under any other instrument
included in the Trust Property, or which would result in the amendment,
hypothecation, subordination, termination or discharge of, or impair the
validity or effectiveness of, any of the Contract Documents or any such
instrument, except as expressly provided herein and therein.

        SECTION 6.04. SERVICER NOT TO RESIGN; ASSIGNMENT.

        (a) The Servicer shall not resign from the duties and obligations hereby
imposed on it except upon determination by its Board of Directors that by reason
of change in applicable legal requirements the continued performance by the
Servicer of its duties hereunder would cause it to be in violation of such legal
requirements in a manner which would result in a material adverse effect on the
Servicer or its financial condition, said determination to be evidenced by a
resolution of its Board of Directors to such effect accompanied by an Opinion of
Counsel, satisfactory to the Issuer, the Insurer and the Indenture Trustee, to
such effect. No such resignation shall become effective unless and until (i) the
Indenture Trustee assumes all of the Servicer's obligations under this Agreement
or (ii) a new servicer acceptable to the Issuer, the Indenture Trustee and the
Insurer is willing to service the Contracts and enters into a servicing
agreement with the Issuer, the Indenture Trustee and the Insurer in form and
substance substantially similar to this Agreement and satisfactory to the
Issuer, the Indenture Trustee and the Insurer, and each Rating Agency confirms
that the selection of such new servicer will not result in the qualification,
reduction or withdrawal of its then- current rating of each Class of Notes
assigned by such Rating Agency. No such resignation by the Servicer shall affect
the obligation of the Servicer to repurchase Contracts pursuant to Section 3.07.

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<PAGE>   71

        (b) Except as specifically permitted in this Agreement, the Servicer may
not assign this Agreement or any of its rights, powers, duties or obligations
hereunder; provided that (i) the Servicer may assign this Agreement in
connection with a consolidation, merger, conveyance, transfer or lease made in
compliance with Section 6.02(b).

        (c) Except as provided in Sections 6.04(a) and (b), the duties and
obligations of the Servicer under this Agreement shall continue until this
Agreement shall have been terminated as provided in Section 8.01 or the Trust
shall have been terminated as provided by the terms of the Trust Agreement, and
shall survive the exercise by the Issuer, the Indenture Trustee or the Insurer
of any right or remedy under this Agreement, or the enforcement by the Issuer,
the Indenture Trustee or any Noteholder, or the Insurer of any provision of the
Notes, the Insurance Agreement or this Agreement.

        (d) The resignation of the Servicer in accordance with this Section
shall not affect the rights of the Seller hereunder. If the Servicer resigns
pursuant to this Section, its appointment as custodian may be terminated
pursuant to Section 2.08.

        SECTION 6.05. LIMITATION ON LIABILITY OF SERVICER AND OTHERS.

        Neither the Servicer nor any of the directors, officers, employees or
agents of the Servicer shall be under any liability to the Issuer or the
Noteholders, except as provided under this Agreement, for any action taken or
for refraining from the taking of any action pursuant to this Agreement or for
errors in judgment; provided, however, that this provision shall not protect the
Servicer or any such person against any liability that would otherwise be
imposed by reason of willful misfeasance, bad faith or negligence (except errors
in judgment) in the performance of duties or by reason of reckless disregard of
obligations and duties under this Agreement. The Servicer and any director,
officer, employee or agent of the Servicer may rely in good faith on any
document of any kind prima facie properly executed and submitted by any person
respecting any matters arising under this Agreement.

        Except as provided in this Agreement, the Servicer shall not be under
any obligation to appear in, prosecute or defend any legal action that shall not
be incidental to its duties to service the Contracts in accordance with this
Agreement, and that in its opinion may involve it in any expense or liability;
provided, however, that the Servicer may undertake any reasonable action that it
may deem necessary or desirable in respect of this Agreement and the other Basic
Documents and the rights and duties of the parties to this Agreement and the
other Basic Documents and the interests of the Noteholders under this Agreement
and the other Basic Documents.

                                   ARTICLE VII

                                     DEFAULT

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<PAGE>   72

        SECTION 7.01. EVENTS OF DEFAULT.

        If any one of the following events (each, a "SERVICER DEFAULT") shall
occur and be continuing:

        (a) any failure by the Servicer to deposit or credit to the Collection
Account or the Payahead Account any amount required under this Agreement to be
so deposited or credited that shall continue unremedied for a period of three
Business Days after written notice of such failure is received by the Servicer
from the Issuer, the Indenture Trustee or the Insurer or after discovery of such
failure by an officer of the Servicer;

        (b) the Insurer, the Indenture Trustee, the Issuer or the Trust Agent
shall not have received a report in accordance with Section 3.09 by the Servicer
Report Date with respect to which such report is due;

        (c) any failure on the part of the Seller or the Servicer duly to
observe or to perform in any material respect any other covenants or agreements
of the Seller or the Servicer set forth in this Agreement or any other Basic
Document, which failure shall (i) materially and adversely affect the rights of
the Noteholders, the Insurer, the Issuer, the Owner Trustee or the Indenture
Trustee and (ii) continue unremedied for a period of 30 days after the date on
which written notice of such failure, requiring the same to be remedied, shall
have been given (A) to the Seller or the Servicer, as the case may be, by the
Insurer, the Issuer, the Owner Trustee or the Indenture Trustee or (B) to the
Seller or the Servicer, as the case may be, and to the Issuer and the Indenture
Trustee by the Holders of Notes, acting together as a single Class, evidencing
in the aggregate not less than 25% of the outstanding amount of the Notes, or
(2) so long as no Insurer Default has occurred and is continuing, by the
Insurer;

        (d) the entry of a decree or order for relief by a court or regulatory
authority having jurisdiction in respect of the Servicer or the Seller in an
involuntary case under the federal bankruptcy laws, as now or hereafter in
effect, or another present or future, federal or state, bankruptcy, insolvency
or similar law, or appointing a receiver, liquidator, assignee, trustee,
custodian, sequestrator or other similar official of the Servicer or the Seller
or of any substantial part of its property, or ordering the winding up or
liquidation of the affairs of the Servicer or the Seller and the continuance of
any such decree or order unstayed and in effect for a period of 60 consecutive
days or the commencement of an involuntary case under the federal bankruptcy
laws, as now or hereinafter in effect, or another present or future federal or
state bankruptcy, insolvency or similar law and such case is not dismissed
within 60 days;

        (e) the commencement by the Servicer or the Seller of a voluntary case
under the federal bankruptcy laws, as now or hereafter in effect, or any other
present or future, federal or state, bankruptcy, insolvency or similar law, or
the consent by the Servicer or the Seller to the appointment of or taking
possession by a receiver, liquidator, assignee, trustee, custodian, sequestrator
or other similar official of the Servicer or the Seller or of any substantial
part of its property or the making by the Servicer or the Seller of an
assignment for the benefit of creditors or the failure by the Servicer or the
Seller generally to pay its debts as such debts become due or the taking of
corporate action by the Servicer or the Seller in furtherance of any of the
foregoing;

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<PAGE>   73

        (f) any change of control of the Servicer in violation of the covenant
set forth in Section 6.02 hereof;

        (g) any representation, warranty or statement of the Servicer or the
Seller made in this Agreement or any certificate, report or other writing
delivered pursuant hereto shall prove to be incorrect in any material respect as
of the time when the same shall have been made (excluding, however, any
representation or warranty as to which Section 2.03 or 3.07 shall be applicable
so long as the Servicer or the Seller shall be in compliance with Section 2.03
or 3.07, as the case may be), and the incorrectness of such representation,
warranty or statement has a material adverse effect on the Noteholders or the
Insurer and, within 30 days after written notice thereof shall have been given
to the Servicer or the Seller by the Indenture Trustee or the Issuer or by
Holders evidencing in the aggregate not less than 25% of the outstanding amount
of the Notes, acting together as a single Class, or, so long as no Insurer
Default has occurred and is continuing, by the Insurer, the circumstance or
condition in respect of which such representation, warranty or statement was
incorrect shall not have been eliminated or otherwise cured;

        (h) a Trigger Event (as defined in the Insurance Agreement) shall have
occurred;

then and in each and every case, so long as such Servicer Default shall not have
been remedied, either (i) the Insurer, provided no Insurer Default has occurred
and is continuing or (ii) if an Insurer Default has occurred and is continuing
Holders evidencing not less than 25% of the outstanding principal amount of the
Notes, acting together as a single Class, or the Indenture Trustee acting on
behalf of the Noteholders, and not the Seller, by notice then given in writing
to the Servicer (and to the Insurer, the Indenture Trustee and the Issuer if
given by the Noteholders) may terminate all the rights and obligations of the
Servicer under this Agreement. Upon such termination, termination of the
Servicer as custodian, if the Servicer is acting as such, can be made pursuant
to Section 2.08. On or after the receipt by the Servicer of such written notice,
all authority and power of the Servicer under this Agreement, whether with
respect to the Notes, the Contracts or otherwise, shall, without further action,
pass to and be vested in the Indenture Trustee or such Successor Servicer as may
be appointed under Section 7.02; and, without limitation, the Indenture Trustee
and the Issuer are hereby authorized and empowered to execute and deliver on
behalf of the Servicer, as attorney-in fact or otherwise, any and all documents
and other instruments, and to do or accomplish all other acts or things
necessary or appropriate to effect the purposes of such notice of termination,
whether to complete the transfer and endorsement of the Contracts and related
documents, or otherwise. The Servicer shall cooperate with the Indenture Trustee
and the Issuer in effecting the termination of the responsibilities and rights
of the Servicer under this Agreement, including the transfer to the Indenture
Trustee for administration by it of all cash amounts that (i) shall at the time
be held by the Servicer for deposit in, or shall have been deposited by the
Servicer in, the Collection Account or Payahead Account or (ii) shall thereafter
be received by it with respect to any Contract.

        Notwithstanding the foregoing, in the event that Onyx is not the
Servicer, then all references to the Seller in this Section 7.01 shall be of no
force and effect, and no act of Seller shall constitute a Servicer Default
hereunder.

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<PAGE>   74

        SECTION 7.02. TRUSTEE TO ACT; APPOINTMENT OF SUCCESSOR.

        Upon the termination of the Servicer by the Insurer pursuant to Section
7.01 or resignation of the Servicer pursuant to Section 6.04, the Insurer shall
appoint a successor servicer ("SUCCESSOR SERVICER"). Upon the termination of the
Servicer by the Indenture Trustee or the Noteholders pursuant to Section 7.01,
or upon the resignation of the Servicer pursuant to Section 6.04 in the event
that the Insurer is not entitled to appoint a successor servicer by operation of
Section 9.08, (i) if the Notes have not been paid in full, the Indenture Trustee
shall be the Successor Servicer, and (ii) if the Notes have been paid in full,
the Owner Trustee, acting at the direction of the Holders of Residual Interest
Instruments evidencing not less than 51% of the Percentage Interests shall
appoint a Successor Servicer. The Successor Servicer shall succeed to all the
responsibilities, duties and liabilities of the Servicer under this Agreement,
except that such Successor Servicer shall not be obligated to purchase Contracts
pursuant to Section 3.07. If the Indenture Trustee acts as Successor Servicer,
the Indenture Trustee shall be entitled to such compensation (whether payable
out of the Collection Account or otherwise) as the Servicer would have been
entitled to under this Agreement if no such notice of termination shall have
been given. Notwithstanding the foregoing, if the Notes have not been paid in
full, the Indenture Trustee may, if it shall be unwilling to act, or shall, if
it shall be legally unable to so act, appoint, or petition a court of competent
jurisdiction to appoint, any established financial institution, having a net
worth of not less than $50,000,000 and whose regular business shall include the
servicing of automotive retail installment sales contracts, as the successor
to the Servicer under this Agreement. Pending appointment of any such Successor
Servicer, the Indenture Trustee shall act in such capacity as provided above. In
connection with such appointment, the Indenture Trustee or any other Successor
Servicer may make such arrangements for the compensation of such successor out
of payments on Contracts as it, the Insurer and such successor shall agree;
provided, however, (i) that such amount shall equal the product of a fixed
percentage rate and the Principal Balance, as of the commencement of each
Collection Period, of each Contract and (ii) that no such compensation shall be
in excess of that previously permitted the Servicer under this Agreement. The
Indenture Trustee and such successor shall take such action, consistent with
this Agreement, as shall be necessary to effectuate any such succession.

        SECTION 7.03. NOTIFICATION TO NOTEHOLDERS AND RESIDUAL INTERESTHOLDERS.

        Upon any termination of, or appointment of a successor to, the Servicer
pursuant to this Article, the Trust Agent shall give prompt written notice
thereof to Residual Interestholders at their respective addresses appearing in
the Certificate Register, and the Indenture Trustee shall give prompt written
notice thereof to Noteholders at their respective addresses appearing in the
Note Register.

        SECTION 7.04. WAIVER OF PAST DEFAULTS.

        Upon the occurrence of a Servicer Default, unless an Insurer Default
shall have occurred and be continuing, the Insurer, and only the Insurer, may
waive any default by the Servicer or the Seller, as the case may be, in the
performance of its obligations under this Agreement except a Servicer Default in
making any required deposits to or payment from the Trust Accounts in accordance
with this Agreement. Upon the occurrence of a Servicer Default, if an Insurer
Default has occurred and is continuing, Holders evidencing not less than 51% of
the outstanding principal amount of the Notes, acting together as a single
Class, on behalf of all Noteholders, shall have the right to waive any default
by the Servicer or the Seller, as the case may be, in the performance of its
obligations

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<PAGE>   75

under this Agreement except a Servicer Default in making any required deposits
to or payment from the Trust Accounts in accordance with this Agreement. A
Servicer Default in making any required deposits to or payment from the Trust
Accounts in accordance with this Agreement may only be waived with the consent
of the Insurer (if no Insurer Default shall have occurred and be continuing) and
Holders evidencing 100% of the outstanding principal amount of the Notes. No
such waiver shall impair the Insurer's or the Noteholders' rights with respect
to subsequent defaults.

        SECTION 7.05. INSURER DIRECTION OF INSOLVENCY PROCEEDINGS.

        The Indenture Trustee, upon the actual knowledge of a Responsible
Officer of the Indenture Trustee, shall promptly notify the Insurer of (i) the
commencement of any of the events or proceedings (individually, an "INSOLVENCY
PROCEEDING") described in the Section 7.01(d) or 7.01(e) hereof and (ii) the
making of any claim in connection with any Insolvency Proceeding seeking the
avoidance as a preferential transfer (a "PREFERENCE CLAIM") of any payment of
principal of, or interest on, any Notes. Any Preference Amounts paid by the
Insurer shall be reimbursed to the Insurer as provided in Section 4.03 and
4.04(b). Each Noteholder, by its purchase of Notes, the Owner Trustee, the Trust
Agent and the Indenture Trustee hereby agree that, so long as no Insurer Default
has occurred and is continuing, the Insurer may at any time during the
continuation of an Insolvency Proceeding direct all matters relating to such
Insolvency Proceeding, including, without limitation, (i) all matters relating
to any Preference Claim, (ii) the direction of any appeal of any order relating
to any Preference Claim and (iii) the posting of any surety or performance bond
pending any such appeal. The Insurer shall be subrogated to the rights of the
Indenture Trustee, the Owner Trustee, the Trust Agent and each Noteholder in the
conduct of any Insolvency Proceeding, including, without limitation, all rights
of any party to an adversary proceeding action with respect to any court order
issued in connection with any such Insolvency Proceeding.

                                  ARTICLE VIII

                                   TERMINATION

        SECTION 8.01. OPTIONAL PURCHASE OF ALL CONTRACTS; SATISFACTION AND
                      DISCHARGE OF THE INDENTURE.

        (a) On each Distribution Date as of which the Pool Balance is 10% or
less of the Original Pool Balance, the Servicer shall have the option to
purchase the remaining Contracts from the Trust. Notice of the exercise of such
option shall be given by the Servicer to the Issuer, the Trust Agent, the
Indenture Trustee and the Insurer not later than the 10th day prior to the
specified Distribution Date and not earlier than the 15th day of the month prior
to the month of the specified Distribution Date. To exercise such option, the
Servicer shall pay to the Indenture Trustee for the benefit of the Noteholders,
by deposit in the Collection Account on the Business Day immediately preceding
the related Distribution Date, the greater of (i) the sum of (x) the Pool
Balance on the date of repurchase plus (y) accrued and unpaid interest on the
Contracts and (ii) the sum of (x) the aggregate unpaid principal amount of the
Notes plus (y) accrued and unpaid interest thereon plus (z) all amounts due to
the Insurer under the Insurance Agreement. Such purchase shall be deemed to have
occurred on the last day of the related Collection Period.

        (b) Notice of any termination of the Trust shall be given by the
Servicer to the Owner Trustee, the Trust Agent, the Insurer and the Indenture
Trustee as soon as practicable after the

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<PAGE>   76

Servicer has received notice thereof. Such notice shall conform to the notice
described in Section 9.01(c) of the Trust Agreement.

        (c) Following the satisfaction and discharge of the Indenture and the
payment in full of the principal of and interest on the Notes, the Residual
Interestholders will succeed to the rights of the Noteholders hereunder and the
Owner Trustee and, on its behalf, the Trust Agent, will succeed to the rights
of, and assume the obligations of, the Indenture Trustee pursuant to this
Agreement.

        SECTION 8.02. TRANSFER TO THE INSURER.

        If (i) there are one or more Outstanding Contracts at the end of the
Collection Period ending immediately prior to the Class A-4 Final Scheduled
Distribution Date and (ii) an amount sufficient to pay the Note Distributable
Amount on the Class A-4 Final Scheduled Distribution Date has been deposited
with the Indenture Trustee by the Insurer for the benefit of the Noteholders,
then on the Class A-4 Final Scheduled Distribution Date, the Class A-4 Notes
shall be deemed to be transferred by the Class A-4 Noteholders to the Insurer or
its designee as purchaser thereof at the opening of business on the Class A-4
Final Scheduled Distribution Date and the Indenture Trustee shall execute, and
the Trust Agent shall authenticate and deliver to the Insurer or its designee,
in the name of the Insurer or its designee, as the case may be, a new Class A-4
Note evidencing the entire outstanding principal amount of the Class A-4 Notes.
Such new Class A-4 Note shall have the same terms as the Class A-4 Notes deemed
transferred by the Class A-4 Noteholders. No service charge shall be made for
the issuance of such Class A-4 Note to the Insurer or its designee, but the
Indenture Trustee or Trust Agent may require payment of a sum sufficient to
cover any tax or other governmental charge imposed in connection therewith. Such
transfer shall not diminish or restrict the Insurer's rights hereunder or under
the Insurance Agreement.

                                   ARTICLE IX

                                  MISCELLANEOUS

        SECTION 9.01. AMENDMENT.

        (a) This Agreement may be amended by the Issuer, the Seller, the
Servicer, the Indenture Trustee and the Trust Agent, collectively, with the
prior written consent of the Insurer, but without the consent of any
Noteholders, to cure any ambiguity, to correct or supplement any provisions in
this Agreement which are inconsistent with the provisions herein, or to make any
other provisions with respect to matters or questions arising under this
Agreement which are not inconsistent with the provisions of this Agreement;
provided, however, that any such action shall not materially and adversely
affect the interests of any Noteholder; and provided, further, that any such
amendment shall be deemed not to materially and adversely affect the interests
of any Noteholder if the Person requesting the amendment obtains a letter or
confirmation from each Rating Agency to the effect that such amendment would not
result in a downgrading or withdrawal of the ratings then assigned to the
applicable Notes by such Rating Agency.

        (b) This Agreement may also be amended by the Issuer, the Seller, the
Servicer, the Indenture Trustee and the Trust Agent, with the consent of the
Insurer and the Holders of Notes evidencing in the aggregate not less than 51%
of the principal amount of the Notes then outstanding, acting together as a
single Class, for the purpose of adding any provisions to or changing in any

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<PAGE>   77

manner or eliminating any of the provisions of this Agreement, or of modifying
in any manner the rights of the Noteholders; provided, however, that no such
amendment shall (i) increase or reduce in any manner the amount of, or
accelerate or delay the timing of, collections of payments on the Contracts or
distributions that shall be required to be made for the benefit of the
Noteholders or (ii) reduce the aforesaid percentage of the outstanding amount of
the Notes the Holders of which are required to consent to any such amendment,
without the consent of all affected Noteholders.

        (c) Promptly after the execution of any such amendment or consent, the
Indenture Trustee shall furnish the written notification of the substance of
such amendment or consent to each Noteholder, respectively.

        (d) It shall not be necessary for the consent of Noteholders pursuant to
Section 9.01(b) to approve the particular form of any proposed amendment or
consent, but it shall be sufficient if such consent shall approve the substance
thereof. The manner of obtaining such consents and of evidencing the
authorization by Noteholders of the execution thereof shall be subject to such
reasonable requirements as the Indenture Trustee may prescribe. Any consent by a
Noteholder to an amendment of the Agreement shall be conclusive and binding on
such Noteholder and upon all future Noteholders of such Note and of any Note
issued upon the transfer thereof or in exchange thereof or in lieu thereof
whether or not notation of such consent is made upon such Note.

        (e) The Trust Agent and the Indenture Trustee may, but shall not be
obligated to, enter into any such amendment which affects the Trust Agent's or
the Indenture Trustee's own rights, duties or immunities under this Agreement or
otherwise and any such amendment shall be unenforceable in its entirety absent
the execution of such amendment by the Trust Agent and the Indenture Trustee.

        SECTION 9.02. PROTECTION OF TITLE TO TRUST.

        (a) The Servicer shall execute and file such financing statements and
cause to be executed and filed such continuation statements, all in such manner
and in such places as may be required by law fully to preserve, maintain and
protect the interest of the Issuer, the Noteholders, the Indenture Trustee, the
Trust Agent and the Insurer in the Contracts and in the proceeds thereof. The
Servicer shall deliver (or cause to be delivered) to the Trust Agent and the
Indenture Trustee file-stamped copies of, or filing receipts for, any document
filed as provided above, as soon as available following such filing.

        (b) Neither the Seller nor the Servicer shall change its name, identity
or corporate structure in any manner that would, could or might make any
financing statement or continuation statement filed in accordance with Section
9.02(a) seriously misleading within the meaning of Section 9-402(7) of the UCC,
unless it shall have given the Insurer, the Trust Agent and the Indenture
Trustee at least 60 days' prior written notice thereof.

        (c) The Seller and the Servicer shall give the Insurer, the Trust Agent
and the Indenture Trustee at least 60 days' prior written notice of any
relocation of the principal executive office of the Seller and the Servicer if,
as a result of such relocation, the applicable provisions of the UCC would
require the filing of any amendment of any previously filed financing or
continuation statement or of any new financing statement. The Servicer shall at
all times maintain each office from which it shall service Contracts, and its
principal executive office, within the United States.

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<PAGE>   78

        (d) The Servicer shall maintain or cause to be maintained accounts and
records as to each Contract accurately and in sufficient detail to permit (i)
the reader thereof to know at any time the status of such Contract, including
payments and recoveries made and payments owing (and the nature of each) and
(ii) reconciliation between payments or recoveries on (or with respect to) each
Contract and the amounts from time to time deposited in or credited to the
Collection Account and the Payahead Account in respect of such Contract.

        (e) The Servicer shall maintain or cause to be maintained its computer
systems so that, from and after the time of sale under this Agreement of the
Contracts to the Issuer, the Servicer's master computer records (including any
backup archives) that shall refer to a Contract indicate clearly the interest of
the Issuer and the Indenture Trustee in such Contract and that such Contract is
owned by the Issuer and has been pledged to the Indenture Trustee.

        (f) If at any time the Seller or the Servicer shall propose to sell,
grant a security interest in, or otherwise transfer any interest in automotive
retail installment sales contracts or installment loan agreements to any
prospective purchaser, lender or other transferee, the Servicer shall give or
cause to be given to such prospective purchaser, lender or other transferee
computer tapes, records or print-outs (including any restored from back-up
archives) that, if they shall refer in any manner whatsoever to any Contract,
shall indicate clearly that such Contract has been sold and is owned by the
Issuer and has been pledged to the Indenture Trustee.

        (g) The Servicer shall permit the Owner Trustee, the Trust Agent, the
Indenture Trustee and the Insurer and their respective agents, at any time
during normal business hours, to inspect, audit and make copies of and abstracts
from the Servicer's records regarding any Contract.

        (h) Upon request, the Servicer shall furnish to the Owner Trustee, the
Trust Agent, the Indenture Trustee and the Insurer, within five Business Days, a
list of all Contracts then held as part of the Trust Property, together with a
reconciliation of such list to the Schedule of Contracts and to each of the
Distribution Date Statements furnished before such request indicating removal of
Contracts from the Trust.

        (i) The Servicer shall deliver to the Trust Agent, the Indenture Trustee
and the Insurer:

                      (i)    promptly after the execution and delivery of this
                             Agreement and of each amendment hereto, an Opinion
                             of Counsel stating that, in the opinion of such
                             counsel, all financing statements and continuation
                             statements have been executed and filed that are
                             necessary fully to preserve and protect the
                             interest of the Issuer and the Indenture Trustee in
                             the Contracts, and reciting the details of such
                             filings or referring to prior Opinions of Counsel
                             in which such details are given, or (B) stating
                             that, in the opinion of such counsel, no such
                             action shall be necessary to preserve and protect
                             such interest; and

                      (ii)   within 90 days after the beginning of each calendar
                             year beginning with the first calendar year
                             beginning more than three months after the Closing
                             Date an Opinion of Counsel, dated as of a date
                             during such 90-day period, either (A) stating that,
                             in the opinion of such

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<PAGE>   79

                             counsel, all financing statements and continuation
                             statements have been executed and filed that are
                             necessary fully to preserve and protect the
                             interest of the Issuer and the Indenture Trustee in
                             the Contracts, and reciting the details of such
                             filings or referring to prior Opinions of Counsel
                             in which such details are given or (B) stating
                             that, in the opinion of such counsel, no such
                             action shall be necessary to preserve and protect
                             such interest.

        (j) The Seller shall, to the extent required by applicable law, cause
the Notes to be registered with the Securities and Exchange Commission pursuant
to Section 12(b) or Section 12(g) of the Securities Exchange Act of 1934, as
amended, within the time periods specified in such sections.

        (k) For the purpose of facilitating the execution of this Agreement and
for other purposes, this Agreement may be executed simultaneously in any number
of counterparts, each of which counterpart shall be deemed to be an original,
and all of which counterparts shall constitute but one and the same instrument.

        SECTION 9.03. GOVERNING LAW.

        THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF CALIFORNIA AND THE OBLIGATIONS, RIGHTS, AND REMEDIES OF THE PARTIES
UNDER THE AGREEMENT SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS, EXCEPT
THAT THE DUTIES OF THE TRUST AGENT AND THE INDENTURE TRUSTEE SHALL BE GOVERNED
BY THE LAWS OF THE STATE OF NEW YORK.

        SECTION 9.04. NOTICES.

        All demands, notices and communications under this Agreement shall be in
writing, personally delivered or mailed by certified mail, return receipt
requested, and shall be deemed to have been duly given upon receipt in the case
of

                      (i)    the Seller, at 27051 Towne Centre Drive, Suite 200,
                             Foothill Ranch, CA 92610, Attention: John W. Hall,
                             President, facsimile (949) 465-3530;

                      (ii)   the Servicer, at 27051 Towne Centre Drive, Suite
                             100, Foothill Ranch, CA 92610, Attention: Don P.
                             Duffy, Executive Vice President, facsimile (949)
                             465-3992;

                      (iii)  the Insurer, at 113 King Street, Armonk, New York
                             10504, Attention: Insured Portfolio Management,
                             Structured Finance, facsimile (914) 765-3163;

                      (iv)   the Issuer or the Owner Trustee, at the Owner
                             Trustee Corporate Trust Office (with, in the case
                             of the Issuer, a copy to the Seller);

                      (v)    the Trust Agent, at the Trust Agent Office;

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<PAGE>   80

                      (vi)   the Indenture Trustee, at the Corporate Trust
                             Office;

                      (vii)  Moody's, to Moody's Investors Service, Inc., ABS
                             Monitoring Department, 99 Church Street, New York,
                             New York 10007;

                      (viii) Standard & Poor's, to Standard & Poor's Ratings
                             Services, 55 Water Street, New York, New York
                             10041, Attention: Asset Backed Surveillance
                             Department; and

                      (ix)   the Custodian, to Onyx Acceptance Corporation,
                             27051 Towne Centre Drive, Suite 100, Foothill
                             Ranch, CA 92610, Attention: Don P. Duffy, Executive
                             Vice President, facsimile (949) 465-3992.

or, as to each of the foregoing, at such other address as shall be designated by
written notice to the other parties. Any notice required or permitted to be to
be mailed to a Noteholder shall be given by first class mail, postage prepaid,
at the address of such Holder as shown in the Note Register. Any notice so
mailed within the time prescribed herein shall be conclusively presumed to have
been duly given, whether or not such Noteholder shall receive such notice.

        SECTION 9.05. SEVERABILITY OF PROVISIONS.

         If the covenants, agreements, provisions or terms of this Agreement
shall be for any reason whatsoever held invalid, then such covenants,
agreements, provisions or terms shall be deemed severable from the remaining
covenants, agreements, provisions or terms of this Agreement and shall in no way
affect the validity or enforceability of the other provisions of this Agreement
or of the Notes or the rights of the Holders thereof.

        SECTION 9.06. ASSIGNMENT.

        Notwithstanding anything to the contrary contained herein, except as
provided in Sections 5.02 and 6.02, neither the Seller nor the Servicer may
transfer or assign all, or a portion of, its rights, obligations and duties
under this Agreement unless such transfer or assignment (i) (A) will not result
in a reduction or withdrawal by any Rating Agency of the rating then assigned by
it to the Notes and (B) the Issuer, the Indenture Trustee and the Insurer have
consented to such transfer or assignment, or (ii) the Insurer, the Issuer, the
Indenture Trustee and Holders of Notes of each Class evidencing not less than
51% of the outstanding amount of Notes of such Class consent thereto. Any
transfer or assignment with respect to the Servicer of all of its rights,
obligations and duties will not become effective until a Successor Servicer has
assumed the Servicer's rights, duties and obligations under this Agreement. In
the event of a transfer or assignment pursuant to clause (ii) above, each Rating
Agency shall be provided with notice of such transfer or assignment.

        SECTION 9.07. THIRD PARTY BENEFICIARIES.

        Except as otherwise specifically provided herein, the parties to this
Agreement hereby manifest their intent that no third parties other than the
Insurer and, solely for the purposes of Section 6.01, the Owner Trustee and the
Trust Agent, shall be deemed a third party beneficiary of this Agreement, and
specifically that the Obligors are not third party beneficiaries of this
Agreement.

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<PAGE>   81

        SECTION 9.08. CERTAIN MATTERS RELATING TO THE INSURER.

        So long as an Insurer Default shall not have occurred and be continuing,
the Insurer shall have the right to exercise all rights, including voting
rights, which the Noteholders are entitled to exercise pursuant to this
Agreement, without any consent of such Noteholders; provided, however, that
without the consent of each Noteholder or Residual Interestholder affected
thereby, the Insurer shall not exercise such rights to amend this Agreement in
any manner that would (i) reduce the amount of, or delay the timing of,
collections of payments on the Contracts or distributions which are required to
be made on any Note or Residual Interest Instrument, (ii) adversely affect in
any material respect the interests of the Holders of any Notes or Residual
Interest Instruments or (iii) alter the rights of any such Holder to consent to
such amendment.

        Notwithstanding any provision in this Agreement to the contrary, for so
long as an Insurer Default shall have occurred and be continuing, the Insurer
shall not have the right to take any action under this Agreement or to control
or direct the actions of the Trust, the Seller, the Indenture Trustee, the
Servicer or the Trust Agent pursuant to the terms of this Agreement, nor shall
the consent of the Insurer be required with respect to any action (or waiver of
a right to take action) to be taken by the Trust, the Seller, the Indenture
Trustee, the Servicer, the Trust Agent or the Holders of the Notes; provided,
that the consent of the Insurer shall be required at all times with respect to
any amendment of this Agreement.

        SECTION 9.09. HEADINGS.

        The headings of the various Articles and Sections herein are for
convenience of reference only and shall not define or limit any of the terms or
provisions hereof.

        SECTION 9.10. ASSIGNMENT BY ISSUER.

        The Seller hereby acknowledges and consents to any mortgage, pledge,
assignment and grant of a security interest by the Issuer to the Indenture
Trustee pursuant to the Indenture for the benefit of the Noteholders and the
Insurer of all right, title and interest of the Issuer in, to and under the
Contracts and/or the assignment of any or all of the Issuer's rights and
obligations hereunder to the Indenture Trustee.

        SECTION 9.11. LIMITATION OF LIABILITY OF CERTAIN PARTIES.

        Notwithstanding anything contained herein to the contrary, this
instrument has been executed by Bankers Trust (Delaware) not in its individual
capacity but in its capacity as Owner Trustee of the Issuer and by The Chase
Manhattan Bank not in its individual capacity but in its capacity as Indenture
Trustee and Trust Agent, and in no event shall Bankers Trust (Delaware) in its
individual capacity, The Chase Manhattan Bank in its individual capacity or any
beneficial owner of the Issuer have any liability for the representations,
warranties, covenants, agreements or other obligations of the Issuer hereunder,
as to all of which recourse shall be had solely to the assets of the Issuer.

                                      -77-

<PAGE>   82

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

                                            ONYX ACCEPTANCE OWNER TRUST 2000-D
                                            as Issuer

                                            By:    Bankers Trust (Delaware), not
                                                   in its individual capacity
                                                   but solely as Owner Trustee

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

                                            ONYX ACCEPTANCE FINANCIAL
                                            CORPORATION, as Seller

                                            By:
                                                   -----------------------------
                                                   Michael A. Krahelski
                                                   Senior Vice President

                                            ONYX ACCEPTANCE CORPORATION, as
                                            Servicer and Custodian

                                            By:
                                                   -----------------------------
                                                   Don P. Duffy
                                                   Executive Vice President and
                                                   Chief Financial Officer

                                            THE CHASE MANHATTAN BANK, not in its
                                            individual capacity but solely as
                                            Indenture Trustee and as Trust Agent

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

Sale and Servicing Agreement - Signature Page

<PAGE>   83

                                  SCHEDULE I-A

                          SCHEDULE OF INITIAL CONTRACTS

                           [On file with the Servicer]

<PAGE>   84

                                  SCHEDULE I-B

                        SCHEDULE OF SUBSEQUENT CONTRACTS

                           [On file with the Servicer]

<PAGE>   85

                                   SCHEDULE II

                 LOCATION AND ACCOUNT NUMBERS OF TRUST ACCOUNTS

                              [Begins on Next Page]

<PAGE>   86

                                    EXHIBIT A

                        FORM OF APPOINTMENT OF CUSTODIAN

[Name and address of Custodian]

        Re:    Onyx Acceptance Owner Trust 2000-D
               Auto Loan Backed Notes, Series 2000-D
               -------------------------------------

Dear Sirs:

        Reference is hereby made to the Sale and Servicing Agreement (the "Sale
and Servicing Agreement") dated as of November 1, 2000 by and among Onyx
Acceptance Owner Trust 2000-D, as Issuer (the "Issuer"), Onyx Acceptance
Corporation, Onyx Acceptance Financial Corporation and The Chase Manhattan Bank,
as Indenture Trustee (the "Indenture Trustee") and Trust Agent ("Trust Agent").
Terms used herein which are defined in the Sale and Servicing Agreement have the
respective meanings set forth in the Sale and Servicing Agreement.

        You are revocably appointed as the agent of and bailee for the Indenture
Trustee to act as custodian, in accordance with the terms and provisions of the
Sale and Servicing Agreement, of the Contract Documents relating to each
Contract and the related Obligor and Financed Vehicle. Please acknowledge your
acceptance of such appointment and your agreement to act as custodian in
accordance with the terms and provisions of the Sale and Servicing Agreement by
signing below in the space indicated therefor.

        By accepting such appointment you acknowledge that (i) the Indenture
Trustee (if the Notes have not been paid in full and the Indenture has not been
satisfied and discharged) and the Issuer or (ii) the Insurer, may terminate such
appointment at any time, with or without cause, by written notice to you.

                                    Very truly yours,

                                    THE CHASE MANHATTAN BANK,
                                    not in its individual capacity, but solely
                                    as Indenture Trustee

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

<PAGE>   87

                                    ONYX ACCEPTANCE OWNER TRUST 2000-D

                                    By: Bankers Trust (Delaware),
                                        not in its individual capacity, but
                                        solely as Owner Trustee

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

ACCEPTED AND AGREED:

[Name of Custodian]

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

MBIA Insurance Corporation

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

<PAGE>   88

                                    EXHIBIT B

                                 FORM OF POLICY

                              [Begins on Next Page]

<PAGE>   89

                                   EXHIBIT C-1

                          FORM OF TRANSFER CERTIFICATE

        The Transfer Certificate, dated as of _________, 2000, is delivered
pursuant to Section 2.01(c) of the Sale and Servicing Agreement dated as of
November 1, 2000 (the "AGREEMENT") between Onyx Acceptance Owner Trust 2000-D,
as Issuer (the "ISSUER"), Onyx Acceptance Financial Corporation, as Seller (the
"SELLER"), Onyx Acceptance Corporation, as Servicer and Custodian, and The Chase
Manhattan Bank, as Indenture Trustee and as Trust Agent (the "INDENTURE
TRUSTEE"). Terms used in this Transfer Certificate which are not defined herein
have meanings assigned to such terms in the Agreement.

        I, __________________, the ____________ of the Seller, do hereby
certify:

        1. Attached hereto as Schedule I is a list of Prefunded Contracts
setting forth the Contract Number, Date of Origination, Maturity Date, Monthly
P&I, Original Principal Balance, Outstanding Principal Balance and APR for each
such Prefunded Contract. Such Schedule I is a list of Prefunded Contracts
referred to in the definition of "Schedule of Contracts" in the Agreement, and
is deemed incorporated into and made a part thereof. Such Prefunded Contracts
have an aggregate Outstanding Principal Balance of $________________, and all
Contract Documents relating thereto have been delivered to the Custodian as of
the date hereof. The Prefunding Cut-Off Date with respect to the Prefunded
Contracts transferred on the date hereof is _____________, 2000.

        2. The aggregate Outstanding Principal Balance of all Prefunded
Contracts as of their respective Prefunding Cut-Off Dates delivered to the
Custodian, on behalf of the Indenture Trustee, pursuant to this Transfer
Certificate and each Transfer Certificate delivered up to the date hereof and
after the Closing Date is $_________, which amount is less than or equal to the
Prefunded Amount.

        3. Each of the conditions set forth in Sections 2.01(c) and 4.08 of the
Agreement has been met as of this Prefunding Transfer Date.

        4. The representations and warranties as set forth in Section 2.02(a)
and (d) of the Agreement with respect to the Seller and the Prefunded Contracts
delivered hereunder are true and correct as of this Prefunding Transfer Date.

        Please transfer immediately available funds by 4:00 New York time today
in the amount of $___________________ to Seller in accordance with the wire
instructions below.

<PAGE>   90

        IN WITNESS WHEREOF, the undersigned has caused this Transfer Certificate
to be delivered to the Issuer, the Indenture Trustee and the Insurer as of the
date first above written.

                                    ONYX ACCEPTANCE FINANCIAL CORPORATION

                                    By:
                                         ---------------------------------------
                                         Name:
                                         Office:

Wiring Instructions:

        Beneficiary:

                    :
        ------------        --------------------------
                            --------------------------
                            --------------------------

        ABA:                 __________________________
        Bank Acct. #         __________________________
        $ Amount:            __________________________
        Notation:            Proceeds from 2000-D Owner Trust Prefunding Account

Consented to and agreed to (if the balance in the Prefunding Account prior to
the Prefunding Transfer Date to which this certificate relates exceeds
$___________).

MBIA Insurance Corporation

<PAGE>   91

                                   EXHIBIT C-2

                   FORM OF PREFUNDING CLOSING DATE CERTIFICATE

        This Prefunding Closing Date Certificate, dated as of _________, 2000,
is delivered pursuant to Section 2.01(j) of the Sale and Servicing Agreement
dated as of November 1, 2000 (the "AGREEMENT") between Onyx Acceptance Owner
Trust 2000-D, as Issuer, Onyx Acceptance Financial Corporation, as Seller (the
"SELLER"), Onyx Acceptance Corporation, as Servicer and Custodian, and The Chase
Manhattan Bank, as Indenture Trustee and as Trust Agent (the "INDENTURE
TRUSTEE"). Terms used in this Prefunding Closing Date Certificate which are not
defined herein have meanings assigned to such terms in the Agreement.

        I, __________________, the ____________ of the Seller, do hereby
certify:

        1. All Contract Documents relating to the Prefunded Contracts have been
delivered to the Custodian, on behalf of the Indenture Trustee, on or before the
date hereof.

        2. The aggregate Outstanding Principal Balance of all Prefunded
Contracts as of their respective Prefunding Transfer Dates conveyed to the
Issuer and pledged to the Indenture Trustee, as described in the Prefunding
Transfer Certificates delivered on and after the Closing Date up to the date
hereof, is $_________, which amount is less than or equal to the original
Prefunded Amount.

        3. Each of the conditions set forth in Section 2.01(j) of the Agreement
has been met as of the Prefunding Closing Date and each of the conditions set
forth in Sections 2.01(c) and 4.08 of the Agreement was met as of each
Prefunding Transfer Date.

        IN WITNESS WHEREOF, the undersigned has caused this Prefunding Closing
Date Certificate to be delivered to each Rating Agency, the Insurer and the
Indenture Trustee as of the date first above written.

                                    ONYX ACCEPTANCE FINANCIAL CORPORATION

                                    By:
                                         ---------------------------------------
                                         Name:
                                         Office:<PAGE>

                                                                 EXHIBIT NO. 4.1

                      $30,000,000 REVOLVING CREDIT FACILITY
                            $100,000,000 TERM LOAN A
                            $100,000,000 TERM LOAN B

                      AMENDED AND RESTATED CREDIT AGREEMENT

                                  by and among

                                 LINC.NET, INC.

                                       and

                             THE BANKS PARTY HERETO

                                 THE GUARANTORS

                    PNC BANK, NATIONAL ASSOCIATION, As Agent

           GENERAL ELECTRIC CAPITAL CORPORATION, As Syndication Agent

                                       and

                   PNC CAPITAL MARKETS, INC., As Lead Arranger

                            Dated as of June 16, 2000

             PREPARED BY BUCHANAN INGERSOLL PROFESSIONAL CORPORATION

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
SECTION                                                                                                        PAGE
-------                                                                                                        ----
<S>                                                                                                            <C>
1.       CERTAIN DEFINITIONS......................................................................................2
         1.1      Certain Definitions.............................................................................2
         1.2      Construction...................................................................................27
         1.3      Accounting Principles..........................................................................28

2.       REVOLVING CREDIT FACILITY...............................................................................29
         2.1      Revolving Credit Commitments...................................................................29
         2.2      Nature of Banks' Obligations with Respect to Revolving Credit Loans............................29
         2.3      Commitment Fees................................................................................29
         2.4      Revolving Credit Loan Requests.................................................................30
         2.5      Making Revolving Credit Loans..................................................................30
         2.6      Revolving Credit Notes.........................................................................31
         2.7      Use of Proceeds................................................................................31
         2.8      Letter of Credit Subfacility...................................................................31

3.       TERM LOANS..............................................................................................31
         3.1      Term Loan A Commitments and Term Loan B Commitments............................................31
         3.2      Nature of Banks' Obligations with Respect to Term Loans........................................31
         3.3      Commitment Fees................................................................................32
         3.4      Term Loan A Requests...........................................................................32
         3.5      Making Term Loans A............................................................................33
         3.6      Term Loan Notes................................................................................33
         3.7      Use of Proceeds................................................................................34

4.       INTEREST RATES..........................................................................................35
         4.1      Interest Rate Options..........................................................................35
                  4.1.1        Revolving Credit Interest Rate Options............................................35
                  4.1.2        Term Loan Interest Rate Options...................................................35
                  4.1.3        Rate Quotations...................................................................36
         4.2      Interest Periods...............................................................................36
                  4.2.1        Amount of Borrowing Tranche.......................................................36
                  4.2.2        Renewals..........................................................................36
         4.3      Interest After Default.........................................................................36
                  4.3.1        Letter of Credit Fees, Interest Rate..............................................37
                  4.3.2        Other Obligations.................................................................37
                  4.3.3        Acknowledgment....................................................................37
         4.4      Euro-Rate Unascertainable; Illegality..........................................................37
                  4.4.1        Euro-Rate Unascertainable.........................................................37
</TABLE>

                                      -i-
<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
SECTION                                                                                                        PAGE
-------                                                                                                        ----
<S>                                                                                                            <C>
                  4.4.2        Illegality........................................................................37
         4.5      Selection of Interest Rate Options.............................................................38

5.       PAYMENTS................................................................................................38
         5.1      Payments.......................................................................................38
         5.2      Pro Rata Treatment of Banks....................................................................39
         5.3      Interest Payment Dates.........................................................................39
         5.4      Voluntary Prepayments..........................................................................39
                  5.4.1        Right to Prepay...................................................................39
                  5.4.2        Voluntary Reduction of Revolving Credit Commitment................................40
         5.5      Mandatory Prepayments..........................................................................40
                  5.5.1        Excess Cash Flow..................................................................40
                  5.5.2        Sale of Assets; Casualty Event; Sale of Debt or Equity Securities.................41
                  5.5.3        Application Among Term Loans and Interest Rate Options............................42
                  5.5.4        Borrowing Base Exceeded...........................................................43
         5.6      Additional Compensation in Certain Circumstances...............................................43
                  5.6.1        Increased Costs or Reduced Return Resulting from Taxes, Reserves, Capital
                               Adequacy Requirements, Expenses, Etc..............................................43
                  5.6.2        Indemnity.........................................................................44

6.       REPRESENTATIONS AND WARRANTIES..........................................................................45
         6.1      Representations and Warranties.................................................................45
                  6.1.1        Organization and Qualification....................................................45
                  6.1.2        Capitalization and Ownership......................................................45
                  6.1.3        Subsidiaries......................................................................45
                  6.1.4        Power and Authority...............................................................46
                  6.1.5        Validity and Binding Effect.......................................................46
                  6.1.6        No Conflict.......................................................................46
                  6.1.7        Litigation........................................................................46
                  6.1.8        Title to Properties...............................................................47
                  6.1.9        Financial Statements..............................................................47
                  6.1.10       Use of Proceeds; Margin Stock; Section 20 Subsidiaries............................48
                  6.1.11       Full Disclosure...................................................................48
                  6.1.12       Taxes.............................................................................49
                  6.1.13       Consents and Approvals............................................................49
                  6.1.14       No Event of Default; Compliance with Instruments..................................49
                  6.1.15       Patents, Trademarks, Copyrights, Licenses, Etc....................................49
                  6.1.16       Security Interests................................................................50
</TABLE>

                                     -ii-
<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
SECTION                                                                                                        PAGE
-------                                                                                                        ----
<S>                                                                                                            <C>
                  6.1.17       Mortgage Liens....................................................................50
                  6.1.18       Status of the Pledged Collateral..................................................51
                  6.1.19       Insurance.........................................................................51
                  6.1.20       Compliance with Laws..............................................................51
                  6.1.21       Material Contracts; Burdensome Restrictions.......................................51
                  6.1.22       Investment Companies; Regulated Entities..........................................52
                  6.1.23       Plans and Benefit Arrangements....................................................52
                  6.1.24       Employment Matters................................................................53
                  6.1.25       Environmental Matters.............................................................54
                  6.1.26       Year 2000.........................................................................55
                  6.1.27       Senior Debt Status................................................................55
         6.2      Updates to Schedules...........................................................................55

7.       CONDITIONS OF LENDING AND ISSUANCE OF LETTERS OF CREDIT.................................................56
         7.1      Loans and Letters of Credit on the Closing Date and in Connection with Permitted
                  Acquisitions...................................................................................56
                  7.1.1        Officer's Certificate.............................................................56
                  7.1.2        Secretary's Certificate...........................................................56
                  7.1.3        Delivery of Loan Documents........................................................57
                  7.1.4        Opinion of Counsel................................................................57
                  7.1.5        Legal Details.....................................................................57
                  7.1.6        Payment of Fees...................................................................57
                  7.1.7        Solvency..........................................................................58
                  7.1.8        Consents..........................................................................58
                  7.1.9        Officer's Certificate Regarding MACs..............................................58
                  7.1.10       No Violation of Laws..............................................................58
                  7.1.11       No Actions or Proceedings.........................................................58
                  7.1.12       Insurance Policies; Certificates of Insurance; Endorsements.......................58
                  7.1.13       Title Insurance...................................................................59
                  7.1.14       Evidence of Lien Priority.........................................................59
                  7.1.15       Landlord's Waiver.................................................................59
                  7.1.16       Consummation of Transactions......................................................59
                  7.1.17       Lien Search.......................................................................60
                  7.1.18       Due Diligence and Contingent Liabilities..........................................60
                  7.1.19       Year 2000.........................................................................60
         7.2      Each Additional Loan or Letter of Credit.......................................................60

8.       COVENANTS...............................................................................................61
         8.1      Affirmative Covenants..........................................................................61
</TABLE>

                                    -iii-
<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
SECTION                                                                                                        PAGE
-------                                                                                                        ----
<S>                                                                                                            <C>
                  8.1.1        Preservation of Existence, Etc....................................................61
                  8.1.2        Payment of Liabilities, Including Taxes, Etc......................................61
                  8.1.3        Maintenance of Insurance..........................................................61
                  8.1.4        Maintenance of Properties and Leases..............................................62
                  8.1.5        Maintenance of Patents, Trademarks, Etc...........................................62
                  8.1.6        Visitation Rights.................................................................62
                  8.1.7        Keeping of Records and Books of Account...........................................62
                  8.1.8        Plans and Benefit Arrangements....................................................63
                  8.1.9        Compliance with Laws..............................................................63
                  8.1.10       Use of Proceeds...................................................................63
                  8.1.11       Further Assurances................................................................63
                  8.1.12       Subordination of Intercompany Loans; Management Fees..............................63
                  8.1.13       Interest Rate Protection..........................................................64
                  8.1.14       Key Man Life Insurance............................................................64
                  8.1.15       Environmental Assessments.........................................................64
         8.2      Negative Covenants.............................................................................65
                  8.2.1        Indebtedness......................................................................65
                  8.2.2        Liens.............................................................................66
                  8.2.3        Guaranties........................................................................66
                  8.2.4        Loans and Investments.............................................................66
                  8.2.5        Dividends and Related Distributions...............................................67
                  8.2.6        Liquidations, Mergers, Consolidations, Acquisitions...............................68
                  8.2.7        Dispositions of Assets or Subsidiaries............................................70
                  8.2.8        Affiliate Transactions............................................................71
                  8.2.9        Subsidiaries, Partnerships and Joint Ventures.....................................71
                  8.2.10       Continuation of or Change in Business.............................................72
                  8.2.11       Plans and Benefit Arrangements....................................................72
                  8.2.12       Fiscal Year.......................................................................73
                  8.2.13       Issuance of Stock.................................................................73
                  8.2.14       Changes in Organizational Documents and Acquisition Agreements....................73
                  8.2.15       Capital Expenditures and Leases...................................................73
                  8.2.16       Minimum Fixed Charge Coverage Ratio...............................................74
                  8.2.17       Maximum Leverage Ratio............................................................74
                  8.2.18       Minimum Interest Coverage Ratio...................................................75
                  8.2.19       Calculation of Financial Statement Covenants......................................75
         8.3      Reporting Requirements.........................................................................76

9.       DEFAULT.................................................................................................76
         9.1      Events of Default..............................................................................76
</TABLE>

                                     -iv-
<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
SECTION                                                                                                        PAGE
-------                                                                                                        ----
<S>                                                                                                            <C>
                  9.1.1        Payments Under Loan Documents.....................................................76
                  9.1.2        Breach of Warranty................................................................76
                  9.1.3        Breach of Negative Covenants or Visitation Rights.................................77
                  9.1.4        Breach of Other Covenants.........................................................77
                  9.1.5        Defaults in Other Agreements or Indebtedness......................................77
                  9.1.6        Final Judgments or Orders.........................................................77
                  9.1.7        Loan Document Unenforceable.......................................................77
                  9.1.8        Uninsured Losses; Proceedings Against Assets......................................78
                  9.1.9        Notice of Lien or Assessment......................................................78
                  9.1.10       Insolvency........................................................................78
                  9.1.11       Events Relating to Plans and Benefit Arrangements.................................78
                  9.1.12       Cessation of Business.............................................................79
                  9.1.13       Change of Control.................................................................79
                  9.1.14       Involuntary Proceedings...........................................................79
                  9.1.15       Voluntary Proceedings.............................................................79
         9.2      Consequences of Event of Default...............................................................80
                  9.2.1        Events of Default Other Than Bankruptcy, Insolvency or Reorganization
                               Proceedings.......................................................................80
                  9.2.2        Bankruptcy, Insolvency or Reorganization Proceedings..............................80
                  9.2.3        Set-off...........................................................................80
                  9.2.4        Suits, Actions, Proceedings.......................................................81
                  9.2.5        Application of Proceeds...........................................................81
                  9.2.6        Other Rights and Remedies.........................................................82
         9.3      Notice of Sale.................................................................................82

10.      THE AGENT...............................................................................................82

11.      MISCELLANEOUS...........................................................................................82
         11.1     Modifications, Amendments or Waivers...........................................................82
                  11.1.1       Increase of Commitment; Extension or Expiration Date..............................82
                  11.1.2       Extension of Payment; Reduction of Principal Interest or Fees;
                               Modification of Terms of Payment..................................................83
                  11.1.3       Release of Collateral or Guarantor................................................83
                  11.1.4       Miscellaneous.....................................................................83
         11.2     No Implied Waivers; Cumulative Remedies; Writing Required......................................83
         11.3     Reimbursement and Indemnification of Banks by the Borrower; Taxes..............................84
         11.4     Holidays.......................................................................................85
         11.5     Funding by Branch, Subsidiary or Affiliate.....................................................85
                  11.5.1       Notional Funding..................................................................85
</TABLE>

                                      -v-
<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
SECTION                                                                                                        PAGE
-------                                                                                                        ----
<S>                                                                                                            <C>
                  11.5.2       Actual Funding....................................................................85
         11.6     Notices........................................................................................86
         11.7     Severability...................................................................................86
         11.8     Governing Law..................................................................................87
         11.9     Prior Understanding............................................................................87
         11.10    Duration; Survival.............................................................................87
         11.11    Successors and Assigns.........................................................................88
         11.12    Confidentiality................................................................................89
                  11.12.1      General...........................................................................89
                  11.12.2      Sharing Information With Affiliates of the Banks..................................89
         11.13    Counterparts...................................................................................90
         11.14    Agent's or Bank's Consent......................................................................90
         11.15    Exceptions.....................................................................................90
         11.16    CONSENT TO FORUM; WAIVER OF JURY TRIAL.........................................................90
         11.17    Tax Withholding Clause.........................................................................91
         11.18    Joinder of Guarantors..........................................................................91
</TABLE>

                                     -vi-
<PAGE>

                         LIST OF SCHEDULES AND EXHIBITS

<TABLE>
<S>                          <C>    <C>
SCHEDULES
SCHEDULE 1.1(A)              -      PRICING GRID
SCHEDULE 1.1(B)              -      COMMITMENTS OF BANKS AND ADDRESSES FOR NOTICES
SCHEDULE 6.1.1               -      QUALIFICATIONS TO DO BUSINESS
SCHEDULE 6.1.2               -      CAPITALIZATION
SCHEDULE 6.1.3               -      SUBSIDIARIES
SCHEDULE 6.1.8               -      OWNED AND LEASED REAL PROPERTY
SCHEDULE 6.1.13              -      CONSENTS AND APPROVALS
SCHEDULE 6.1.15              -      PATENTS, TRADEMARKS, COPYRIGHTS, LICENSES, ETC.
SCHEDULE 6.1.18              -      PARTNERSHIP AGREEMENTS; LLC AGREEMENTS
SCHEDULE 6.1.19              -      INSURANCE POLICIES
SCHEDULE 6.1.21              -      MATERIAL CONTRACTS
SCHEDULE 6.1.23              -      EMPLOYEE BENEFIT PLAN DISCLOSURES
SCHEDULE 6.1.25              -      ENVIRONMENTAL DISCLOSURES
SCHEDULE 8.2.1               -      PERMITTED INDEBTEDNESS
SCHEDULE 8.2.2               -      PERMITTED LIENS
SCHEDULE 8.2.4               -      PERMITTED INVESTMENTS
SCHEDULE 8.2.6               -      CERTAIN TARGET ACQUISITIONS
SCHEDULE 8.2.8               -      AFFILIATE TRANSACTIONS

EXHIBITS
EXHIBIT 1.1(A)               -      ASSIGNMENT AND ASSUMPTION AGREEMENT
EXHIBIT 1.1(C)               -      COLLATERAL ASSIGNMENT
EXHIBIT 1.1(G)(1)            -      GUARANTOR JOINDER
EXHIBIT 1.1(G)(2)            -      GUARANTY AGREEMENT
EXHIBIT 1.1(I)(1)            -      INDEMNITY
EXHIBIT 1.1(I)(2)            -      INTERCOMPANY SUBORDINATION AGREEMENT
EXHIBIT 1.1(M)(1)            -      MORTGAGE
EXHIBIT 1.1(M)(2)                   MANAGEMENT FEE SUBORDINATION AGREEMENT
EXHIBIT 1.1(P)(1)            -      PATENT, TRADEMARK AND COPYRIGHT SECURITY AGREEMENT
EXHIBIT 1.1(P)(2)            -      PLEDGE AGREEMENT
EXHIBIT 1.1(R)               -      REVOLVING CREDIT NOTE
EXHIBIT 1.1(S)               -      SECURITY AGREEMENT
EXHIBIT 1.1(T)(1)            -      TERM NOTE A
EXHIBIT 1.1(T)(2)            -      TERM NOTE B
EXHIBIT 2.4                  -      LOAN REQUEST
EXHIBIT 2.8                  -      LETTERS OF CREDIT
EXHIBIT 3.4                  -      TERM LOAN A REQUEST
EXHIBIT 7.1.4                -      OPINION OF COUNSEL
EXHIBIT 7.1.15               -      LANDLORD'S WAIVER
EXHIBIT 8.1.14               -      LIFE INSURANCE ASSIGNMENT
EXHIBIT 8.2.6                -      ACQUISITION COMPLIANCE CERTIFICATE
EXHIBIT 8.3                  -      REPORTING REQUIREMENTS
EXHIBIT 8.3.4                -      QUARTERLY COMPLIANCE CERTIFICATE
EXHIBIT 10                   -      AGENT PROVISIONS
</TABLE>

                                    -vii-

<PAGE>

                      AMENDED AND RESTATED CREDIT AGREEMENT

        THIS AMENDED AND RESTATED CREDIT AGREEMENT is dated as of June 16, 2000
and is made by and among LINC.NET, INC., a Delaware corporation (the
"BORROWER"), each of the GUARANTORS (as hereinafter defined), the BANKS (as
hereinafter defined), GENERAL ELECTRIC CAPITAL CORPORATION, in its capacity as
Syndication Agent (the "SYNDICATION AGENT") and PNC BANK, NATIONAL ASSOCIATION,
in its capacity as agent for the Banks under this Agreement (hereinafter
referred to in such capacity as the "AGENT").

                                   WITNESSETH:

        WHEREAS, the Borrower, the Guarantors, the Banks, the Documentation
Agent set forth therein, the Syndication Agent and the Agent are parties to that
certain Credit Agreement dated as of October 19, 1999, as amended by First
Amendment to Credit Agreement dated as of December 21, 1999, Second Amendment to
Credit Agreement dated as of January 7, 2000, Third Amendment to Credit
Agreement dated as of March 13, 2000, Fourth Amendment to Credit Agreement dated
as of April 11, 2000 and Fifth Amendment to Credit Agreement dated as of May 2,
2000 (as amended, the "ORIGINAL CREDIT AGREEMENT") pursuant to which the Banks
provided to the Borrower a revolving credit facility in an aggregate principal
amount not to exceed $20,000,000, a term loan A facility in an aggregate amount
not to exceed $64,700,000 and a term loan B facility in an aggregate principal
amount of $56,300,000; and

        WHEREAS, the parties hereto wish to amend and restate the Original
Credit Agreement upon the terms and conditions hereinafter set forth to, among
other things, increase the revolving credit facility to $30,000,000 and to
increase both the term loan A and term loan B facilities to $100,000,000 each;
and

        WHEREAS, the revolving credit and term loan facilities shall be used to
provide a portion of the proceeds required for the acquisition by the Borrower
of the Founding Companies and other Permitted Acquisitions (as such terms are
herein defined), to pay related fees and expenses and to fund working capital
and general corporate needs; and

        WHEREAS, the Banks are willing to provide such credit upon the terms and
conditions hereinafter set forth;

        NOW, THEREFORE, the parties hereto, in consideration of their mutual
covenants and agreements hereinafter set forth and intending to be legally bound
hereby, covenant and agree to amend and restate the Original Credit Agreement as
follows:

<PAGE>

                             1. CERTAIN DEFINITIONS

        1.1     CERTAIN DEFINITIONS.

        In addition to words and terms defined elsewhere in this Agreement, the
following words and terms shall have the following meanings, respectively,
unless the context hereof clearly requires otherwise:

        ACCOUNT shall mean any account, contract right, general intangible,
chattel paper, instrument or document representing any right to payment for
goods sold or services rendered, whether or not earned by performance and
whether or not evidenced by a contract, instrument or document, which is now
owned or hereafter acquired by the Borrower or a direct or indirect wholly-owned
Subsidiary of the Borrower which is a Guarantor. All Accounts, whether Qualified
Accounts or not, shall be subject to the Banks' Prior Security Interest.

        ACCOUNT DEBTOR shall mean any Person who is or who may become obligated
to any Loan Party under, with respect to, or on account of, an Account.

        ACQUISITION AGREEMENTS shall mean collectively the C&B Stock Purchase
Agreement, the CLS Stock Purchase Agreement, the GMC Company Stock Purchase
Agreement, the Muller Stock Purchase Agreement, the North Shore Stock Purchase
Agreement, the Telpro Stock Purchase Agreement, the UCI Stock Purchase Agreement
and the Communicor Asset Purchase Agreements, as the same may be amended or
modified from time to time in accordance with the terms of this Agreement.

        AFFILIATE as to any Person shall mean any other Person (i) which
directly or indirectly controls, is controlled by, or is under common control
with such Person, (ii) which beneficially owns or holds 5% or more of any class
of the voting or other equity interests of such Person, or (iii) 5% or more of
any class of voting interests or other equity interests of which is beneficially
owned or held, directly or indirectly, by such Person. Control, as used in this
definition, shall mean the possession, directly or indirectly, of the power to
direct or cause the direction of the management or policies of a Person, whether
through the ownership of voting securities, by contract or otherwise, including
the power to elect a majority of the directors or trustees of a corporation or
trust, as the case may be.

        AGENT shall mean PNC Bank, National Association, and its successors and
assigns.

        AGREEMENT shall mean this Credit Agreement, as the same may be
supplemented or amended from time to time, including all schedules and exhibits.

        APPLICABLE MARGIN shall mean, as applicable:

                                      -2-
<PAGE>

        (A)     for the Revolving Credit Base Rate Option, the percentage spread
to be added to the Base Rate under the Revolving Credit Base Rate Option at the
indicated level of the Leverage Ratio in the Pricing Grid next to the heading
"Revolving Credit Base Rate Margin";

        (B)     for the Term Loan A Base Rate Option, the percentage spread to
be added to the Base Rate under the Term Loan A Base Rate Option at the
indicated level of the Leverage Ratio in the Pricing Grid next to the heading
"Term Loan A Base Rate Margin";

        (C)     the percentage spread to be added to the Euro-Rate under the
Revolving Credit Euro-Rate Option at the indicated level of the Leverage Ratio
in the Pricing Grid next to the heading "Revolving Credit Euro-Rate Margin,"

        (D)     the percentage spread to be added to the Euro-Rate under the
Term Loan A Euro-Rate Option at the indicated level of the Leverage Ratio in the
Pricing Grid next to the heading "Term Loan A Euro-Rate Margin."

        Notwithstanding the foregoing, until the sixth month anniversary of the
Closing Date (the foregoing date shall be referred to herein as the "INITIAL
ADJUSTMENT DATE"), the Revolving Credit Euro-Rate Margin shall be 350 basis
points, the Revolving Credit Base Margin shall be 200 basis points, the Term
Loan A Euro-Rate Margin shall be 350 basis points and the Term Loan A Base Rate
Margin shall be 200 basis points. Any change in the Applicable Margin shall be
based upon the financial statements and compliance certificates provided
pursuant to Sections 2 and 3 of EXHIBIT 8.3 and shall become effective upon
receipt of such financial statements and compliance certificates for the fiscal
quarter upon which the ratio is calculated.

        ASSIGNMENT AND ASSUMPTION AGREEMENT shall mean an Assignment and
Assumption Agreement by and among a Purchasing Bank, a Transferor Bank and the
Agent, as Agent and on behalf of the remaining Banks, substantially in the form
of EXHIBIT 1.1(A).

        BANKS shall mean the financial institutions named on SCHEDULE 1.1(B) and
their respective successors and assigns as permitted hereunder, each of which is
referred to herein as a Bank.

        BASE RATE shall mean the greater of (i) the interest rate per annum
announced from time to time by the Agent at its Principal Office as its then
prime rate, which rate may not be the lowest rate then being charged commercial
borrowers by the Agent, or (ii) the Federal Funds Effective Rate plus one half
percent (1/2% ) per annum.

        BASE RATE OPTION shall mean either the Revolving Credit Base Rate
Option, the Term Loan A Base Rate Option or the Term Loan B Base Rate Option.

        BENEFIT ARRANGEMENT shall mean at any time an "employee benefit plan,"
within the meaning of Section 3(3) of ERISA, which is neither a Plan nor a
Multiemployer Plan

                                      -3-
<PAGE>

and which is maintained, sponsored or otherwise contributed to by any member of
the ERISA Group.

        BORROWER shall mean Linc.net, Inc., a corporation organized and existing
under the laws of the State of Delaware.

        BORROWING BASE shall mean at any time the sum of (i) 85% of Qualified
Accounts, plus (ii) 50% of Qualified Inventory.

        BORROWING BASE CERTIFICATE shall mean each Borrowing Base Certificate to
be delivered by the Borrower to the Agent pursuant to Section 2.1 and Paragraph
1 of Exhibit 2.8, in substantially the form attached hereto as EXHIBIT 1.1(B),
with the blanks appropriately completed, as amended, supplemented or otherwise
modified from time to time.

        BORROWING DATE shall mean, with respect to any Loan, the date for the
making thereof or the renewal or conversion thereof at or to the same or a
different Interest Rate Option, which shall be a Business Day.

        BORROWING TRANCHE shall mean specified portions of Loans outstanding as
follows: (i) any Loans to which a Euro-Rate Option applies which become subject
to the same Interest Rate Option under the same Loan Request by the Borrower and
which have the same Euro-Rate Interest Period shall constitute one Borrowing
Tranche, and (ii) all Loans to which a Base Rate Option applies shall constitute
one Borrowing Tranche.

        BUSINESS DAY shall mean any day other than a Saturday or Sunday or a
legal holiday on which commercial banks are authorized or required to be closed
for business in Pittsburgh, Pennsylvania, Chicago, Illinois and Miami, Florida.

        C&B shall mean C&B Associates, Inc., a Texas corporation, and its
Affiliates acquired pursuant to the C&B Stock Purchase Agreement.

        C&B STOCK PURCHASE AGREEMENT shall mean the Stock Purchase Agreement
dated as of December 21, 1999 by and among C&B, the shareholders of C&B and the
Borrower and any related documents, all the foregoing on terms and conditions
satisfactory to the Agent in its reasonable discretion, as the same may be
amended or modified from time to time in accordance with the terms of this
Agreement.

        CASH EQUIVALENTS shall mean (i) any security, maturing not more than six
months after the date of acquisition, issued by the United Stated of America, or
an instrumentality or agency thereof and guaranteed fully as to principal,
premium, if any, and interest by the United States of America, (ii) any
certificate of deposit, time deposit, money market account or bankers'
acceptance, maturing not more than six months after the date of acquisition,
issued by any commercial banking institution that is a member of the Federal
Reserve System and that has combined capital and surplus and undivided profits
of not less than

                                      -4-
<PAGE>

$500,000,000, whose debt has a rating of "P-1" (or higher) according to Moody's
Investors Service, Inc., or "A-1" (or higher) according to Standard & Poor's,
(iii) commercial paper, maturing not more than three months after the date of
acquisition, issued by any corporation (other than an Affiliate or Subsidiary of
the Borrower) organized and existing under the laws of the United States of
America with a rating of "P-1" (or higher) according to Moody's Investors
Service, Inc. or "A-a" or higher according to Standard & Poor's, (iv) mutual
fund accounts containing principally the investments described in items (i)
through (iii) above, and (v) money market accounts having a fixed price per
share.

        CASUALTY EVENT shall mean, with respect to any property or assets
(including Property) of any Person, any loss of or damage to or destruction of,
or any condemnation or other taking (including by any Official Body) of, such
property or assets (including Property) for which such Person or any of its
Subsidiaries receives insurance proceeds or proceeds of a condemnation award or
other similar compensation; PROVIDED, however, that no such event shall
constitute a Casualty Event if such proceeds or other compensation in respect
thereof is less than $500,000 . Casualty Event shall include but not be limited
to any taking of any Property of any Person or any part thereof, in or by
condemnation or other eminent domain proceedings pursuant to any law, general or
special, or by reason of the temporary requisition of the use or occupancy of
any Property of any Person or any part thereof, by any Official Body, civil or
military.

        CCC shall mean Communications Construction Corporation, a Delaware
corporation.

        CEC shall mean Communicor Equipment Company, a Delaware corporation.

        CHANGE OF CONTROL shall mean any one or more of the following events
shall occur: (i) Bank One Corporation and the wholly owned Subsidiaries of Bank
One Corporation, Cross Creek Partners IX, LLC and its affiliated investment
partnerships (whether now or hereafter formed), Carlisle Enterprises, LLC and
Carlisle Linc.net Investments, L.P. cease to own in the aggregate at least 50.1
percent of the ownership interests of Linc.net, LLC, a Delaware limited
liability company ("BOEC LLC") with full right to direct voting with respect to
their member interests, (ii) The SKM Equity Fund II, L.P. and SKM Investment
Fund II and their other affiliated investment partnerships (whether now or
hereafter formed), Carlisle Enterprises, LLC and Carlisle Linc.net Investments,
L.P. cease to own in the aggregate at least 50.1 percent of the ownership
interests of SKM Linc.net, LLC, a Delaware limited liability company ("SKM LLC"
and, together with BOEC LLC, the "PARENT LLCS") with full right to direct voting
with respect to their member interests, (iii) the Parent LLCs cease in the
aggregate to own at least 50.1 percent of the outstanding capital stock of the
Borrower with full right to vote the shares, (iv) the Borrower or any wholly
owned Subsidiary of the Borrower ceases to own all the outstanding capital stock
of each of Linc.net Acquisition, Linc.net Acquisition II, CLS, C & B, CCC, CEC,
GMC Company, Muller, UCI, CTI, and North Shore, as the case may

                                      -5-
<PAGE>

be, with full right to vote the shares, (v) the Borrower or any wholly owned
Subsidiary of the Borrower and Ismael Perera fail to own in the aggregate at
least 50.1 percent of the outstanding voting stock of Telpro, with full right to
vote the shares, and on and after September 8, 2000, the Borrower or any wholly
owned Subsidiary of the Borrower fails to own all the outstanding capital stock
of Telpro, with full right to vote the shares, and (vi) there shall occur either
a "CHANGE OF OWNERSHIP" or a "FUNDAMENTAL CHANGE", as such terms are defined in
the Borrower's Amended Certificate of Designations for Series A Redeemable
Preferred Stock and Certificate of Designations for Series B Preferred Stock of
Linc.net, Inc. filed with the Delaware Secretary of State. The failure to meet
the conditions set forth in items (iv) and (v) shall not constitute a Change of
Control if it results from mergers, consolidations and liquidations permitted
under Section 8.2.6.

        CLOSING DATE shall mean June 16, 2000, the Business Day on which all the
conditions specified in Section 7 have been satisfied or waived with respect to
the initial closing hereunder.

        CLS shall mean Capital Land Services, Inc., an Oklahoma corporation.

        CLS STOCK PURCHASE AGREEMENT shall mean that certain Stock Purchase
Agreement dated October 19, 1999 among CLS, Patrick L. Adams, the shareholder of
CLS and Linc.net Acquisition Corp., Patrick L. Adams 1997 Revocable Trust, and
any related documents, as the same may be amended or modified from time to time
in accordance with the terms of this Agreement.

        COLLATERAL shall mean the Pledged Collateral, the UCC Collateral, the
Intellectual Property Collateral and the Real Property.

        COLLATERAL ASSIGNMENT shall mean the Collateral Assignment of Contract
Rights in the form of EXHIBIT 1.1(C).

        COMMERCIAL LETTER OF CREDIT shall mean any Letter of Credit which is a
commercial letter of credit issued in respect of the purchase of goods or
services by one or more of the Loan Parties in the ordinary course of their
business.

        COMMITMENT shall mean as to any Bank the aggregate of its Revolving
Credit Commitment, Term Loan A Commitment and Term Loan B Commitment, and
COMMITMENTS shall mean the aggregate of the Revolving Credit Commitments, Term
Loan A Commitments and Term Loan B Commitments of all of the Banks.

        COMMUNICOR shall mean Communicor Corporation - USA, an Arizona
corporation.

        COMMUNICOR ASSET PURCHASE AGREEMENTS shall mean collectively (i) the
Asset Purchase Agreement dated as of May 10, 2000 by and among Communicor, as
Seller, CTI,

                                      -6-
<PAGE>

as buyer, the direct and indirect shareholders of Communicor, and certain other
parties, (ii) the Equipment Purchase Agreement dated as of May 10, 2000 by and
among Transwest, Inc., Transwestsouth, Inc., Stanley D. Lebakken and Charles R.
Lundgren d/b/a Dealer under the name of Transwest, Stanley D. Lebakken, Charles
R. Lundgren, Gardner H. Altman, Jr., and CTI, as buyer, (iii) the Goodwill
Purchase Agreement dated as of May 10, 2000 by and among Gardner H. Altman, Jr.,
Stanley D. Lebakken, Charles R. Lundgren and CTI, as buyer, (iv) the Merger
Agreement dated as of May 10, 2000 by and among Char Stan, Inc., the sellers
named therein, Borrower and Linc.net Acquisition Corp. IV and (v) the Merger
Agreement dated as of May 10, 2000 by and among CCC, the sellers named therein,
Borrower and Linc.net Acquisition Corp. III, and any related documents, all the
foregoing on terms and conditions satisfactory to the Agent in its reasonable
discretion, as the same may be amended or modified from time to time in
accordance with the terms of this Agreement.

        CONSIDERATION shall mean with respect to any Permitted Acquisition, the
aggregate, without duplication, of (i) the cash, Cash Equivalents and similar
consideration paid by any of the Loan Parties, directly or indirectly, to the
seller in connection therewith, (ii) the Indebtedness incurred or assumed by any
of the Loan Parties, whether in favor of the seller or otherwise and whether
fixed or contingent, and (iii) any Guaranty of Indebtedness of a Person other
than another Loan Party given or incurred by any Loan Party in connection
therewith. To the extent that the consideration described in clause (i) above is
provided from cash proceeds from an equity investment by the equityholders of
the Parent LLCs or the shareholders of the Borrower, it shall be excluded from
Consideration.

        CONSOLIDATED EBITDA for any period of determination shall mean (i) the
sum of net income, depreciation, amortization, other non-cash charges to net
income, interest expense, income tax expense and management fees, plus or minus
(ii) extraordinary (as defined under GAAP) non-cash debits and credits to net
income, extraordinary and nonrecurring charges (as both are defined under GAAP)
and noncapitalized transaction costs in connection with the acquisition of the
Founding Companies and Permitted Acquisitions, and other nonrecurring charges
agreed to by the Agent in its reasonable discretion, minus (iii) cash payments
made in such period applied to reserves established in prior periods for
extraordinary items, in each case of the Borrower and its Subsidiaries for such
period determined and consolidated in accordance with GAAP.

        CONSOLIDATED TOTAL INDEBTEDNESS shall mean the sum of (i) principal
balance of the Loans and the Letters of Credit Outstanding, (ii) all other
Indebtedness of the Borrower and its Subsidiaries for borrowed money, including
without limitation capitalized leases, and (iii) Indebtedness permitted under
Section 8.2.1(vi) and (vii) to the extent it becomes a liability on the balance
sheet of the Borrower or any of its Subsidiaries, each of the foregoing as
determined and consolidated in accordance with GAAP, plus the amount of the Loan
Parties' guaranty of any Indebtedness for borrowed money, including without
limitation capitalized leases, if the primary obligor of the Indebtedness
guaranteed is a Person other than a Loan Party.

                                      -7-
<PAGE>

        CONTAMINATION shall mean the presence of Regulated Substances in, on,
under or emanating to or from the Property, which pursuant to Environmental Laws
requires notification or reporting to an Official Body, or which pursuant to
Environmental Laws requires the investigation, cleanup, removal or remediation
of such Regulated Substances or which otherwise constitutes a violation of
Environmental Laws.

        CTI shall mean Communicor Telecommunications, Inc., a Delaware
corporation and wholly owned Subsidiary of the Borrower.

        DOLLAR, DOLLARS, U.S. DOLLARS and the symbol $ shall mean lawful money
of the United States of America.

        EBITDA for any period of determination shall mean (i) the sum of net
income, depreciation, amortization, other non-cash charges to net income,
interest expense, income tax expense and management fees, plus or minus (ii)
extraordinary (as defined under GAAP) non-cash debits and credits to net income,
extraordinary and nonrecurring charges (as both are defined under GAAP), minus
(iii) cash payments made in such period applied to reserves established in prior
periods for extraordinary items, in each case determined in accordance with
GAAP.

        ENVIRONMENTAL COMPLAINT shall mean any written complaint setting forth a
cause of action for personal injury or property damage, natural resource damage,
contribution or indemnity for response costs, civil penalties, criminal
penalties or declaratory or equitable relief arising under any Environmental Law
or order, notice of violation, citation, subpoena or request for information
indicating potential liability for the costs of a remediation, removal or other
response action issued by an Official Body pursuant to any Environmental Law.

        ENVIRONMENTAL LAWS shall mean all federal, state, local and foreign Laws
pertaining or relating to (i) pollution or pollution control; (ii) protection of
human health or environment; (iii) employee safety in the workplace; (iv) the
management, generation, processing, treatment, recycling, transport or disposal
of Regulated Substances; (v) the presence of Contamination; (vi) the protection
of endangered or threatened species; and (vii) the protection of Environmentally
Sensitive Areas.

        ENVIRONMENTALLY SENSITIVE AREA shall mean (i) any wetland as defined by
applicable Environmental Laws; (ii) any area designated as a coastal zone
pursuant to applicable Laws, including Environmental Laws; (iii) any area of
historic or archeological significance as defined by applicable Laws, including
Environmental Laws; (iv) habitats of endangered species or threatened species as
designated by applicable Laws, including Environmental Laws; or (v) a floodplain
or other flood hazard area as defined pursuant to any applicable Laws.

        ERISA shall mean the Employee Retirement Income Security Act of 1974, as
the same may be amended or supplemented from time to time, and any successor
statute of similar import, and the rules and regulations thereunder, as from
time to time in effect.

                                      -8-
<PAGE>

        ERISA GROUP shall mean, at any time, the Borrower and all members of a
controlled group of corporations and all trades or businesses (whether or not
incorporated) under common control and all other entities which, together with
the Borrower, are treated as a single employer under Section 414 of the Internal
Revenue Code.

        EURO-RATE shall mean, with respect to the Loans comprising any Borrowing
Tranche to which the Euro-Rate Option applies for any Euro-Rate Interest Period,
the interest rate per annum determined by the Agent by dividing (the resulting
quotient rounded upwards, if necessary, to the nearest 1/100th of 1% per annum)
(i) the rate of interest determined by the Agent in accordance with its usual
procedures (which determination shall be conclusive absent manifest error) to be
the average of the London interbank offered rates for U.S. Dollars quoted by the
British Bankers' Association ("BBA") as set forth on Dow Jones Markets Service
(formerly known as Telerate) (or appropriate successor or, if the British
Bankers' Association or its successor ceases to provide such quotes, a
comparable replacement determined by the Agent) display page 3750 (or such other
display page on the Dow Jones Markets Service system as may replace display page
3750) two (2) Business Days prior to the first day of such Euro-Rate Interest
Period for an amount comparable to such Borrowing Tranche and having a borrowing
date and a maturity comparable to such Euro-Rate Interest Period by (ii) a
number equal to 1.00 minus the Euro-Rate Reserve Percentage, to the extent that
the Banks are subject to such reserve. The Euro-Rate may also be expressed by
the following formula:

        Average of London interbank offered rates quoted by BBA as shown on
Euro-Rate = Dow Jones Markets Service display page 3750 or appropriate successor
            --------------------------------------------------------------------
                              1.00 - Euro Rate Reserve Percentage

The Euro-Rate shall be adjusted with respect to any Euro-Rate Option
outstanding on the effective date of any change in the Euro-Rate Reserve
Percentage as of such effective date. The Agent shall give prompt notice to
the Borrower of the Euro-Rate as determined or adjusted in accordance
herewith, which determination shall be conclusive absent manifest error.

        EURO-RATE INTEREST PERIOD shall mean the period of one (1), two (2),
three (3) or six (6) months selected by the Borrower commencing on the date of
disbursement of a Loan to which the Euro-Rate Option applies and each successive
period selected by the Borrower thereafter; provided, that if a Euro-Rate
Interest Period would end on a day which is not a Business Day, it shall end on
the next succeeding Business Day, unless such day falls in the succeeding
calendar month in which case the Euro-Rate Interest Period shall end on the next
preceding Business Day. In no event shall any Euro-Rate Interest Period end on a
day after the Expiration Date.

        EURO-RATE OPTION shall mean either the Revolving Credit Euro-Rate
Option, the Term Loan A Euro-Rate Option and the Term Loan B Euro-Rate Option.

                                      -9-
<PAGE>

        EURO-RATE RESERVE PERCENTAGE shall mean the maximum effective percentage
in effect on such day as prescribed by the Board of Governors of the Federal
Reserve System (or any successor) for determining the reserve requirements
(including supplemental, marginal and emergency reserve requirements) with
respect to eurocurrency funding (currently referred to as "EUROCURRENCY
LIABILITIES"). The Euro-Rate shall be adjusted with respect to any Borrowing
Tranches to which the Euro-Rate Option applies that are outstanding on the
effective date of any change in the Euro-Rate Reserve Percentage as of such
effective date. The Agent shall give prompt notice to the Borrower of any such
adjustment, which determination shall be conclusive absent manifest error.

        EVENT OF DEFAULT shall mean any of the events described in Section 9.1
and referred to therein as an "EVENT OF DEFAULT."

        EXCESS CASH FLOW shall be computed as of the close of each fiscal year
commencing with the fiscal year ended December 31, 2000, by taking the
difference between Consolidated EBITDA for such fiscal year and the sum of (i)
Fixed Charges, (ii) payments made in accordance with the provisions of Section
8.2.5(iii) [Dividends and Related Distributions] for such fiscal year, (iii)
that portion of Consideration not financed with proceeds of the Revolving Credit
Loans, (iv) extraordinary or nonrecurring cash losses or cash expenses, (v)
voluntary prepayments on Indebtedness other than the Loans not in excess of
$250,000 in any fiscal year and (vi) earn-out payments made in cash in
connection with the acquisition of the Founding Companies or in connection with
Permitted Acquisitions, and adding to such difference decreases in Working
Capital in such fiscal year and subtracting from such difference increases in
Working Capital in such fiscal year. All determinations of Excess Cash Flow
shall be based on the immediately preceding fiscal year and shall be made
following the delivery by the Borrower to the Agent of the Borrower's audited
financial statements for such preceding year; with respect to any Permitted
Acquisition, Working Capital of the entity acquired as of the beginning of the
fiscal year in which such Permitted Acquisition occurs shall be as set forth on
the closing balance sheet.

        EXPIRATION DATE shall mean, with respect to the Revolving Credit
Commitments, June 16, 2005.

        FEDERAL FUNDS EFFECTIVE RATE for any day shall mean the rate per annum
(based on a year of 360 days and actual days elapsed and rounded upward to the
nearest 1/100th of 1%) announced by the Federal Reserve Bank of New York (or any
successor) on such day as being the weighted average of the rates on overnight
federal funds transactions arranged by federal funds brokers on the previous
trading day, as computed and announced by such Federal Reserve Bank (or any
successor) in substantially the same manner as such Federal Reserve Bank
computes and announces the weighted average it refers to as the "FEDERAL FUNDS
EFFECTIVE RATE" as of the date of this Agreement; PROVIDED, if such Federal
Reserve Bank (or its successor) does not announce such rate on any day, the
"Federal Funds Effective Rate" for such day shall be the Federal Funds Effective
Rate for the last day on which such rate was announced.

                                      -10-
<PAGE>

        FIXED CHARGE COVERAGE RATIO shall mean the ratio of Consolidated EBITDA
to Fixed Charges.

        FIXED CHARGES shall mean for any period of determination the sum of
interest expense paid in cash, income taxes, scheduled principal installments on
Indebtedness (as adjusted for prepayments), capital expenditures (excluding
capital expenditures purchased from the proceeds of a Casualty, proceeds of a
disposition of assets pursuant to 8.2.7(v), consideration paid by the Borrower
and its Subsidiaries in connection with the acquisition of the Founding
Companies and Consideration), scheduled payments under capitalized leases, and
management fees, in each case of the Borrower and its Subsidiaries for such
period determined and consolidated in accordance with GAAP.

        FOUNDING COMPANIES shall mean collectively C&B, CLS, GMC Company,
Muller, North Shore, Telpro, UCI, CTI, CCC and CEC.

        GAAP shall mean generally accepted accounting principles as are in
effect from time to time, subject to the provisions of Section 1.3, and applied
on a consistent basis both as to classification of items and amounts.

        GMC COMPANY shall mean George M. Construction, Inc., a Texas
corporation.

        GMC COMPANY STOCK PURCHASE AGREEMENT shall mean the Stock Purchase
Agreement dated as of May 2, 2000 by and among GMC Company, the shareholders of
GMC Company and the Borrower and any related documents, all the foregoing on
terms and conditions satisfactory to the Agent in its reasonable discretion, as
the same may be amended or modified from time to time in accordance with the
terms of this Agreement.

        GUARANTOR shall mean each of the Persons which is a party to the
Guaranty Agreement, including without limitation, each Person which joins the
Guaranty Agreement after the date hereof pursuant to Section 11.18.

        GUARANTOR JOINDER shall mean a joinder by a Person as a Guarantor under
this Agreement, the Guaranty Agreement and the other Loan Documents in the form
of EXHIBIT 1.1(G)(1).

        GUARANTY of any Person shall mean any obligation of such Person
guaranteeing or in effect guaranteeing any liability or obligation of any other
Person in any manner, whether directly or indirectly, including any agreement to
indemnify or hold harmless any other Person, any performance bond or other
suretyship arrangement and any other form of assurance against loss, except
endorsement of negotiable or other instruments for deposit or collection in the
ordinary course of business.

                                      -11-
<PAGE>

        GUARANTY AGREEMENT shall mean the Guaranty and Suretyship Agreement in
substantially the form of EXHIBIT 1.1(G)(2) executed and delivered by each of
the Guarantors to the Agent for the benefit of the Banks.

        INDEBTEDNESS shall mean, as to any Person at any time, any and all
indebtedness, obligations or liabilities (whether matured or unmatured,
liquidated or unliquidated, direct or indirect, absolute or contingent, or joint
or several) of such Person for or in respect of: (i) borrowed money, (ii)
amounts raised under or liabilities in respect of any note purchase or
acceptance credit facility, (iii) reimbursement obligations (contingent or
otherwise) under any letter of credit, currency swap agreement, interest rate
swap, cap, collar or floor agreement or other interest rate management device,
(iv) any other transaction (including forward sale or purchase agreements,
capitalized leases and conditional sales agreements) having the commercial
effect of a borrowing of money entered into by such Person to finance its
operations or capital requirements (but not including trade payables and accrued
expenses incurred in the ordinary course of business which are not represented
by a promissory note or other evidence of indebtedness and which are not more
than ninety (90) days past due), or (v) any Guaranty of Indebtedness for
borrowed money.

        INDEMNITY shall mean the Indemnity Agreement in the form of EXHIBIT
1.1(I)(1) among the Agent and the Loan Parties relating to possible
environmental liabilities associated with any of the Property.

        INELIGIBLE SECURITY shall mean any security which may not be
underwritten or dealt in by member banks of the Federal Reserve System under
Section 16 of the Banking Act of 1933 (12 U.S.C. Section 24, Seventh), as
amended.

        INITIAL ADJUSTMENT DATE shall have the meaning set forth in the
definition of Applicable Margin.

        INITIAL TELPRO CLOSING shall mean the Initial Closing (as defined in the
Telpro Stock Purchase Agreement).

        INSOLVENCY PROCEEDING shall mean, with respect to any Person, (a) a
case, action or proceeding with respect to such Person (i) before any court or
any other Official Body under any bankruptcy, insolvency, reorganization or
other similar Law now or hereafter in effect, or (ii) for the appointment of a
receiver, liquidator, assignee, custodian, trustee, sequestrator, conservator
(or similar official) of any Loan Party or otherwise relating to the
liquidation, dissolution, winding-up or relief of such Person, or (b) any
general assignment for the benefit of creditors, composition, marshaling of
assets for creditors, or other, similar arrangement in respect of such Person's
creditors generally or any substantial portion of its creditors; undertaken
under any Law.

        INTELLECTUAL PROPERTY COLLATERAL shall mean all of the property
described in the Patent, Trademark and Copyright Security Agreement.

                                      -12-
<PAGE>

        INTERCOMPANY SUBORDINATION AGREEMENT shall mean a Subordination
Agreement among the Loan Parties in the form attached hereto as EXHIBIT
1.1(I)(2).

        INTEREST RATE OPTION shall mean any Euro-Rate Option or Base Rate
Option.

        INTEREST RATE PROTECTION AGREEMENT shall have the meaning set forth in
Section 8.1.13.

        INTERNAL REVENUE CODE shall mean the Internal Revenue Code of 1986, as
the same may be amended or supplemented from time to time, and any successor
statute of similar import, and the rules and regulations thereunder, as from
time to time in effect.

        INVENTORY shall mean any and all goods, merchandise and other personal
property, including, without limitation, goods in transit, wheresoever located
and whether now owned or hereafter acquired by the Borrower or any direct or
indirect wholly-owned Subsidiary of the Borrower which is a Guarantor which are
or may at any time be held as raw materials, finished goods, work-in-process,
supplies or materials used or consumed in such Loan Party's business or held for
sale or lease, including, without limitation, (a) all such property the sale or
other disposition of which has given rise to Accounts and which has been
returned to or repossessed or stopped in transit by such Loan Party, and (b) all
packing, shipping and advertising materials relating to all or any such
property. Inventory shall also include all Accounts for which the Borrower or
the Guarantor which has sold the goods or rendered the services or both has not
yet submitted an invoice to the Account Debtor. All Inventory, whether Qualified
Inventory or not, shall be subject to the Banks' Prior Security Interest.

        IPO shall mean any sale or issuance of any equity securities by an Loan
Party in a public offering.

        KEY MAN LIFE INSURANCE shall have the meaning set forth in Section
8.1.14.

        LABOR CONTRACTS shall mean all employment agreements, employment
contracts, collective bargaining agreements and other agreements among any Loan
Party or Subsidiary of a Loan Party and its employees.

        LAW shall mean any law (including common law), constitution, statute,
treaty, regulation, rule, ordinance, opinion, release, ruling, order,
injunction, writ, decree, consent decree, bond, judgment, authorization, lien or
award of any Official Body.

        LETTER OF CREDIT shall have the meaning set forth in EXHIBIT 2.8.

        LETTER OF CREDIT BORROWING shall mean an extension of credit resulting
from a drawing under any Letter of Credit which shall not have been reimbursed
on the date

                                      -13-
<PAGE>

when made and shall not have been converted into a Revolving Credit Loan under
the terms of EXHIBIT 2.8.

        LETTERS OF CREDIT OUTSTANDING shall mean at any time the sum of (i) the
aggregate undrawn face amount of outstanding Letters of Credit and (ii) the
aggregate amount of all unpaid and outstanding Reimbursement Obligations.

        LEVERAGE RATIO shall mean at any date the ratio of Consolidated Total
Indebtedness minus the amount of cash or Cash Equivalents held by the Borrower
and its Subsidiaries at such date to Consolidated EBITDA for the four (4) fiscal
quarters then most recently ended.

        LIEN shall mean any mortgage, deed of trust, pledge, lien, security
interest, charge or other encumbrance or security arrangement of any nature
whatsoever, whether voluntarily or involuntarily given, including any
conditional sale or title retention arrangement, and any assignment, deposit
arrangement or lease intended as, or having the effect of, security and any
filed financing statement or other notice of any of the foregoing (whether or
not a lien or other encumbrance is created or exists at the time of the filing).

        LINC.NET ACQUISITION shall mean Linc.net Acquisition Corp., a Delaware
corporation (formerly CLS Acquisition Corp.).

        LINC.NET ACQUISITION II shall mean Linc.net Acquisition Corp. II, a
Delaware corporation.

        LOAN DOCUMENTS shall mean this Agreement, the Agent's Letter, the
Collateral Assignment, the Guaranty Agreement, the Indemnity, the Intercompany
Subordination Agreement, the Management Fee Subordination Agreements, the
Mortgage, the Notes, the Patent, Trademark and Copyright Security Agreement, the
Pledge Agreement, the Security Agreement, Interest Rate Protection Agreements in
favor of any Bank or an Affiliate of a Bank, and any other instruments,
certificates or similar documents delivered hereunder or thereunder or in
connection herewith or therewith (exclusive of documents relating to equity
interests of the Loan Parties other than the Pledge Agreement), as the same may
be supplemented or amended from time to time in accordance herewith or
therewith, and LOAN DOCUMENT shall mean any of the Loan Documents.

        LOAN PARTIES shall mean the Borrower and the Guarantors.

        LOANS shall mean collectively and LOAN shall mean separately all
Revolving Credit Loans, the Term Loans A and Term Loans B or any Revolving
Credit Loan, Term Loan A or Term Loan B.

        MANAGEMENT FEES shall have the meaning given to such term in Section
8.1.12.

                                      -14-
<PAGE>

        MANAGEMENT FEE SUBORDINATION AGREEMENT shall mean separately and
MANAGEMENT FEE SUBORDINATION AGREEMENTS shall mean collectively, those certain
Management Fee Subordination Agreements substantially in the form of EXHIBIT
1.1(M)(2) hereto entered into among the Borrower, the Agent and First Chicago
Equity Corporation, Carlisle 1999, L.P., and Saunders, Karp & Megrue, L.P.,
respectively.

        MATERIAL ADVERSE CHANGE shall mean any set of circumstances or events
which (a) has or could reasonably be expected to have any material adverse
effect upon the validity or enforceability of this Agreement or any other Loan
Document, (b) is or could reasonably be expected to be material and adverse to
the business, properties, assets, financial condition, or results of operations
of the Loan Parties taken as a whole, (c) impairs materially or could reasonably
be expected to impair materially the ability of the Loan Parties taken as a
whole to duly and punctually pay or perform its Indebtedness, or (d) impairs
materially or could reasonably be expected to impair materially the ability of
the Agent or any of the Banks, to the extent permitted, to enforce their legal
remedies pursuant to this Agreement or any other Loan Document.

        MONTH, with respect to an Euro-Rate Interest Period under the Euro-Rate
Option, shall mean the interval between the days in consecutive calendar months
numerically corresponding to the first day of such Euro-Rate Interest Period. If
any Euro-Rate Interest Period begins on a day of a calendar month for which
there is no numerically corresponding day in the month in which such Interest
Period is to end, the final month of such Euro-Rate Interest Period shall be
deemed to end on the last Business Day of such final month.

        MORTGAGE shall mean the Mortgages in substantially the form of EXHIBIT
1.1(M) with respect to the Real Property executed and delivered by the
appropriate Loan Party to the Agent for the benefit of the Banks.

        MULLER shall mean Muller & Pribyl Utilities, Inc., a Minnesota
corporation, and its Affiliates acquired pursuant to the Muller Stock Purchase
Agreement.

        MULLER STOCK PURCHASE AGREEMENT shall mean the Stock Purchase Agreement
dated as of December 21, 1999 by and among Muller, the shareholders of Muller,
and the Borrower and any related documents, all the foregoing on terms and
conditions satisfactory to the Agent in its reasonable discretion, as the same
may be amended or modified from time to time in accordance with the terms of
this Agreement.

        MULTIEMPLOYER PLAN shall mean any employee benefit plan which is a
"multiemployer plan" within the meaning of Section 4001(a)(3) of ERISA and to
which the Borrower or any member of the ERISA Group is then making or accruing
an obligation to make contributions or, within the preceding five (5) Plan
years, has made or had an obligation to make such contributions.

                                      -15-

<PAGE>

        MULTIPLE EMPLOYER PLAN shall mean a Plan which has two (2) or more
contributing sponsors (including the Borrower or any member of the ERISA Group)
at least two (2) of whom are not under common control, as such a plan is
described in Sections 4063 and 4064 of ERISA.

        NORTH SHORE shall mean North Shore Cable Contractors, Inc., an Ohio
corporation.

        NORTH SHORE STOCK PURCHASE AGREEMENT shall mean the Stock Purchase
Agreement dated as of January 21, 2000 by and among North Shore, the
shareholders of North Shore, and the Borrower and any related documents, all the
foregoing on terms and conditions satisfactory to the Agent in its reasonable
discretion, as the same may be amended or modified from time to time in
accordance with the terms of this Agreement.

        NOTES shall mean the Revolving Credit Notes, the Term Notes A and Term
Notes B.

        OBLIGATIONS shall mean any obligation or liability of any of the Loan
Parties to the Agent or any of the Banks, howsoever created, arising or
evidenced, whether direct or indirect, absolute or contingent, now or hereafter
existing, or due or to become due, under or in connection with this Agreement,
the Notes, the Letters of Credit, the Agent's Letter or any other Loan Document.

        OFFICIAL BODY shall mean any national, federal, state, local or other
government or political subdivision or any agency, authority, bureau, central
bank, commission, department or instrumentality of either, or any court,
tribunal, grand jury or arbitrator, in each case whether foreign or domestic.

        ORIGINAL CLOSING DATE shall mean the Business Day on which the first
Loans were made, which was October 19, 1999.

        ORIGINAL CREDIT AGREEMENT shall have the meaning given to such term in
the first recital clause.

        PARTICIPATION ADVANCE shall mean, with respect to any Bank, such Bank's
payment in respect of its participation in a Letter of Credit Borrowing
according to its Ratable Share pursuant to EXHIBIT 2.8.

        PARTNERSHIP INTERESTS shall have the meaning given to such term in
Section 6.1.3.

        PATENT, TRADEMARK AND COPYRIGHT SECURITY AGREEMENT shall mean the
Patent, Trademark and Copyright Security Agreement in substantially the form of
EXHIBIT

                                      -16-
<PAGE>

1.1(P)(1) executed and delivered by each of the Loan Parties to the Agent for
the benefit of the Banks.

        PBGC shall mean the Pension Benefit Guaranty Corporation established
pursuant to Subtitle A of Title IV of ERISA or any successor.

        PERMITTED ACQUISITION shall have the meaning given to such term in
Section 8.2.6(2).

        PERMITTED LIENS SHALL MEAN:

                (i)     Liens for taxes, assessments, or similar charges,
incurred in the ordinary course of business and which are not yet due and
payable;

                (ii)    Pledges or deposits made in the ordinary course of
business to secure payment of workmen's compensation, or to participate in any
fund in connection with workmen's compensation, unemployment insurance, old-age
pensions or other social security programs;

                (iii)   Liens of mechanics, materialmen, warehousemen, carriers,
or other like Liens, securing obligations incurred in the ordinary course of
business that are not yet due and payable and Liens of landlords securing
obligations to pay lease payments that are not yet due and payable or in
default;

                (iv)    Good-faith pledges or deposits made in the ordinary
course of business to secure performance of bids, tenders, contracts (other than
for the repayment of borrowed money) or leases, not in excess of the aggregate
amount due thereunder, or to secure statutory obligations, or surety, appeal,
indemnity, performance or other similar bonds required in the ordinary course of
business;

                (v)     Encumbrances consisting of zoning restrictions,
easements or other restrictions on the use of real property, none of which
materially impairs the use of such property or the value thereof, and none of
which is violated in any material respect by existing or proposed structures or
land use;

                (vi)    Liens, security interests and mortgages in favor of the
Agent for the benefit of the Banks;

                (vii)   Liens on property leased by any Loan Party or Subsidiary
of a Loan Party under capital leases permitted in Section 8.2.15 securing
obligations of such Loan Party or Subsidiary to the lessor under such leases;

                                      -17-
<PAGE>

                (viii)  Any Lien existing on the date of this Agreement and
described on SCHEDULE 8.2.2, provided that the principal amount secured thereby
is not hereafter increased, and no additional assets become subject to such
Lien;

                (ix)    Purchase Money Security Interests, PROVIDED that the
aggregate amount of loans and deferred payments secured by such Purchase Money
Security Interests shall not exceed $2,000,000 (excluding for the purpose of
this computation any loans or deferred payments secured by Liens described on
SCHEDULE 8.2.2);

                (x)     Liens which are restricted to cash earnest money
deposits made by the Borrower and its Subsidiaries in connection with any letter
of intent or purchase agreement entered into in connection with any Permitted
Acquisitions, provided that the amount secured by all such deposits does not
exceed $500,000 at any one time outstanding;

                (xi)    Liens which secure Indebtedness permitted under Section
8.2.1(ix) provided that such Liens are limited to tangible real or personal
property and proceeds thereof and secure Indebtedness of the Person acquired
which was incurred in connection with the purchase of such property.

                (xii)   Leases, subleases and licenses granted to subcontractors
and similar parties in the ordinary course of business of the Borrower and its
Subsidiaries, provided that such grants do not interfere in any material respect
with the business of the Borrower and its Subsidiaries and do not adversely
affect the value of the Collateral in a material manner; and

                (xiii)  The following, (A) if the validity or amount thereof is
being contested in good faith by appropriate and lawful proceedings diligently
conducted so long as levy and execution thereon have been stayed and continue to
be stayed or (B) if a final judgment is entered and such judgment is discharged
within thirty (30) days of entry, and in either case they do not affect the
Collateral or, in the aggregate, materially impair the ability of any Loan Party
to perform its Obligations hereunder or under the other Loan Documents:

                        (1)     Claims or Liens for taxes, assessments or
                charges due and payable and subject to interest or penalty,
                PROVIDED that the applicable Loan Party maintains such reserves
                or other appropriate provisions as shall be required by GAAP and
                pays all such taxes, assessments or charges forthwith upon the
                commencement of proceedings to foreclose any such Lien;

                        (2)     Claims, Liens or encumbrances upon, and defects
                of title to, real or personal property other than the
                Collateral, including any attachment of personal or real
                property or other legal process prior to adjudication of a
                dispute on the merits; or

                                      -18-
<PAGE>

                        (3)     Claims or Liens of mechanics, materialmen,
                warehousemen, carriers, or other statutory nonconsensual Liens.

                        (4)     Liens resulting from final judgments or orders
                described in Section 9.1.6.

                (xiv)   Liens other than as described in clauses (i) through
(xiii) on tangible personal property which secure Indebtedness not in excess
of $50,000.

        PERSON shall mean any individual, corporation, partnership, limited
liability company, association, joint-stock company, trust, unincorporated
organization, joint venture, government or political subdivision or agency
thereof, or any other entity.

        PLAN shall mean at any time an employee pension benefit plan
(including a Multiple Employer Plan, but not a Multiemployer Plan) which is
covered by Title IV of ERISA or is subject to the minimum funding standards
under Section 412 of the Internal Revenue Code and either (i) is maintained
by any member of the ERISA Group for employees of any member of the ERISA
Group or (ii) has at any time within the preceding five (5) years been
maintained by any entity which was at such time a member of the ERISA Group
for employees of any entity which was at such time a member of the ERISA
Group.

        PLEDGE AGREEMENT shall mean the Pledge Agreement in substantially the
form of EXHIBIT 1.1(P)(2) executed and delivered by the Borrower, Linc.net
Acquisition Corp. and Linc.net Acquisition Corp. II to the Agent for the
benefit of the Banks.

        PLEDGED COLLATERAL shall mean the property of the Loan Parties in
which security interests are to be granted under the Pledge Agreement or the
Collateral Assignment.

        PNC BANK shall mean PNC Bank, National Association, its successors
and assigns.

        POTENTIAL DEFAULT shall mean any event or condition which with
notice, passage of time or a determination by the Agent or the Required
Banks, or any combination of the foregoing, would constitute an Event of
Default.

        PRICING GRID shall mean the Pricing Grid set forth on SCHEDULE 1.1(A).

        PRINCIPAL OFFICE shall mean the main banking office of the Agent in
Pittsburgh, Pennsylvania.

        PRIOR SECURITY INTEREST shall mean a valid and enforceable perfected
first-priority security interest under the Uniform Commercial Code in the UCC
Collateral and the Pledged Collateral which is subject only to Liens for
taxes not yet due and payable to the extent such prospective tax payments are
given priority by statute, Liens described under items (vii), (x)

                                      -19-
<PAGE>

and (xi) of the definition of Permitted Liens, Liens described under items (ii)
and (iv) of the definition of Permitted Liens, Liens described under item (iii)
of the definition of Permitted Liens to the extent given priority under state
Law, Liens set forth on SCHEDULE 8.2.2 or Purchase Money Security Interests as
permitted hereunder.

        PROHIBITED TRANSACTION shall mean any prohibited transaction as
defined in Section 4975 of the Internal Revenue Code or Section 406 of ERISA
for which neither an individual nor a class exemption has been issued by the
United States Department of Labor.

        PROPERTY shall mean all real property, both owned and leased, of any
Loan Party or Subsidiary of a Loan Party.

        PURCHASE MONEY SECURITY INTEREST shall mean Liens upon tangible
personal property securing loans to any Loan Party or Subsidiary of a Loan
Party or deferred payments by such Loan Party or Subsidiary for the purchase
of such tangible personal property.

        PURCHASING BANK shall mean a Bank which becomes a party to this
Agreement by executing an Assignment and Assumption Agreement.

        QUALIFIED ACCOUNTS shall mean Accounts of the Borrower and the
Subsidiary Guarantors (each an "ACCOUNT HOLDER") as of the date of the
applicable Borrowing Base Certificate as reflected on the Borrower's
consolidated balance sheet. Accounts means, on any date of determination, the
aggregate unpaid portion of the obligations denominated in United States
Dollars as stated on the respective invoices issued to a customer of an
Account Holder with respect to inventory sold and shipped or services
performed in the ordinary course of business, net of any credits, rebates or
offsets owed by such Account Holder or to the respective customer and net of
any commissions payable by such Account Holder to third parties. Qualified
Accounts shall not include (without duplication of deductions):

                (a)     Accounts which remain unpaid for more than ninety
days after date of invoice;

                (b)     Accounts which by their terms (whether as contract
retainage or otherwise) are not payable within 90 days of the date of the
applicable Borrowing Base Certificate;

                (c)     Accounts to the extent in excess of $50,000 due from
a customer whose principal place of business is located outside of the United
States or Canada, or such Accounts to the extent in excess of an aggregate of
$150,000, except for such Accounts that are backed by a letter of credit
(provided that such letter of credit was issued or confirmed by a bank that
is organized under the laws of the United States of America or a State
thereof and has capital and surplus in excess of $100,000,000);

                                      -20-
<PAGE>

                (d)     Accounts with respect to which the customer is the
United States of America or any department, agency, or instrumentality
thereof except for those Accounts for which the Account Holder has complied
with the Federal Assignment of Claims Act (Ref. 31 U.S.C. Section 3727);

                (e)     Accounts with respect to which the customer is an
Affiliate of any Account Holder or a director, officer, agent, stockholder,
or employee of any Account Holder or any of their Affiliates; (f) Accounts
with respect to which there is any unresolved dispute with the respective
customer but only to the extent of such dispute;

                (g)     Accounts with respect to which Agent does not have a
valid, first priority and fully perfected security interest and Accounts
subject to any Lien except those in favor of Agent and Permitted Liens;
including Accounts evidenced by an instrument (as defined in Article 9 of the
UCC) not in the possession of Agent and Accounts where the Account
documentation forbids or makes unenforceable the security interest granted by
the applicable Account Holder;

                (h)     Accounts with respect to which the customer is the
subject of any bankruptcy or other insolvency proceeding;

                (i)     Accounts due from a customer to the extent that such
Accounts exceed in the aggregate 30% of the aggregate of all Accounts at said
date;

                (j)     Accounts with respect to which the customer's
obligation to pay is conditional or subject to a repurchase obligation or
right to return, including bill and hold sales, guarantied sales, sale or
return transactions, sales on approval or consignment sales;

                (k)     Accounts with respect to which the customer is
located in New Jersey, or any other state denying creditors access to its
courts in the absence of a Notice of Business Activities Report or other
similar filing unless the Account Holder is qualified as a foreign
corporation authorized to do business in such state or has filed a Notice of
Business Activities Report or other similar filing and such filing is
currently effective; and

                (l)     Accounts of Telpro which are payable to a deposit
account under any escrow or lockbox arrangement with Northern Telecom Inc. or
any of its Affiliates ("NORTEL"). In addition to the foregoing exclusion, all
Accounts of Telpro which are otherwise Qualified Accounts shall be reduced by
an amount equal to the balance owed by Telpro to Nortel for the Nortel
Inventory which relates to such Qualified Accounts. In the event that Telpro,
Nortel and the banks receiving Telpro Accounts amend the escrow/lockbox
agreements on terms satisfactory to the Agent to recognize the security
interest of the Agent and the Banks in the Accounts and provide for payment
to the Agent, then Qualified Accounts shall also include such

                                      -21-
<PAGE>

Accounts minus an amount equal to the balance owed by Telpro to Nortel for the
Nortel Inventory which relates to such Accounts.

        QUALIFIED INVENTORY shall mean Inventory of the Borrower and the
Subsidiary Guarantors as of the date of the applicable Borrowing Base
Certificate as reflected by Borrower's consolidated balance sheet. Inventory
means all of the "inventory" (as such term is defined in the UCC) of the
Borrower and its Subsidiary Guarantors, including, but not limited to, all
merchandise, raw materials, parts, supplies, work-in-process and finished goods
intended for sale. Qualified Inventory shall not include (without duplication of
deductions):

                (a)     Inventory which is not subject to a perfected Lien in
favor of the Agent for the benefit of the Banks, or is not free and clear of any
prior Lien (other than Permitted Liens);

                (b)     Inventory which is not located at, or in transit to, any
of the locations identified as locations of Inventory pursuant to Schedule A to
the Security Agreement or at a location where services are being provided;

                (c)     Inventory which was acquired by the Borrower or a
Subsidiary Guarantor on consignment or which has been placed out on consignment
by the Borrower or a Subsidiary Guarantor unless such Inventory is subject to a
first priority perfected security interest in favor of the Agent for the benefit
of the Banks (subject only to Permitted Liens;

                (d)     Inventory which is obsolete or is not of good and
merchantable quality;

                (e)     Inventory which does not meet all material standards
imposed by any official having regulatory authority over such item of Inventory,
its use or its sale;

                (f)     Inventory which was in any material respect produced in
violation of the Fair Labor Standards Act and subject to the so-called "hot
goods" provision contained in Title 29 U.S.C. Section 2159(a)(1); and

                (g)     Inventory owned by Telpro supplied by Northern Telecom
Inc. pursuant to the Master Agreement for Supply of Products dated February 12,
1998, or any similar supply agreement with Northern Telecom.

        RATABLE SHARE shall mean the proportion that a Bank's Commitment bears
to the Commitments of all of the Banks PROVIDED that, notwithstanding the
forgoing, with respect to Section 2 hereof and EXHIBIT 2.8 hereto, Ratable Share
shall mean the proportion that any Bank's Revolving Credit Commitment bears to
the Revolving Credit Commitments of all Banks.

                                      -22-
<PAGE>

        REAL PROPERTY shall mean (i) the real estate owned by any Loan Party and
(ii) the real estate leased by any Loan Party which is material to the ongoing
operation of the Loan Party's business, all the foregoing of which shall to the
extent requested by the Agent, be encumbered by a mortgage or leasehold
mortgage, as the case may be, in substantially the form of the Mortgage.

        REGULATED SUBSTANCES shall mean, without limitation, any substance,
material or waste, regardless of its form or nature, defined as a "hazardous
substance," "hazardous waste," "toxic substance," "extremely hazardous
substance," "toxic chemical," "toxic waste," "solid waste," "industrial
waste," "residual waste," "municipal waste," "special handling waste," "mixed
waste," "infectious waste," "chemotherapeutic waste," "medical waste,"
"regulated substance," "pollutant," or "contaminant" pursuant to
Environmental Laws or any other substance, material or waste, regardless of
its form or nature, which otherwise is regulated by Environmental Laws,
including but not limited to, the Comprehensive Environmental Response,
Compensation and Liability Act, 42 U.S.C. Section 9601 et seq., the Resource
Conservation and Recovery Act, 42 U.S.C. Section 6901 et seq., the Hazardous
Materials Transportation Act, 49 U.S.C. Section 1801 et seq., the Toxic
Substances Control Act, 15 U.S.C. Section 2601 et seq., the Federal Water
Pollution Control Act, 33 U.S.C. Section 1251 et seq., the Federal Safe
Drinking Water Act, 42 U.S.C. Section 300f-300j, the Federal Air Pollution
Control Act, 42 U.S.C. 7401 et seq., the Oil Pollution Act, 33 U.S.C. Section
2701 et seq., the Federal Insecticide, Fungicide and Rodenticide Act, 7
U.S.C. Section 136 to 136y, the Occupational Safety and Health Act, 29 U.S.C.
Section 651 et seq., each as amended, or any equivalent state or local Law,
and any amendments thereto.

        REGULATION U shall mean Regulation U, T or X as promulgated by the Board
of Governors of the Federal Reserve System, as amended from time to time.

        REPORTABLE EVENT shall mean a reportable event described in Section 4043
of ERISA and regulations thereunder with respect to a Plan or Multiemployer
Plan.

        REQUIRED BANKS shall mean any Bank or group of Banks if the sum of the
Loans and Letters of Credit Outstanding then outstanding plus the unutilized
Commitments then in effect of such Banks aggregates at least 51% of the total
principal amount of all Loans, Letters of Credit Outstanding and unutilized
Commitments then in effect. Reimbursement Obligations and Letter of Credit
Borrowings shall be deemed, for the purpose of determining Letters of Credit
Outstanding as used in this definition, to be in favor of the Agent and not a
participating Bank if such Bank has not made its Participation Advance in
respect thereof and shall be deemed to be in favor of such Bank to the extent of
its Participation Advance if it has made its Participation Advance in respect
thereof.

        REQUIRED ENVIRONMENTAL PERMITS shall mean all permits, licenses, bonds,
approvals or authorizations required under Environmental Laws for the Loan
Parties to conduct

                                      -23-
<PAGE>

their respective operations, maintain the Property or equipment thereon or
construct and maintain any improvement.

        REQUIRED ENVIRONMENTAL REPORTS shall mean all notices, reports, forms or
other filings which pursuant to Environmental Laws must be submitted to an
Official Body or which otherwise must be maintained by the Loan Parties.

        REVOLVING CREDIT BASE RATE OPTION shall mean the option of the Borrower
to have Revolving Credit Loans bear interest at the rate and under the terms and
conditions set forth in Section 4.1.1(i).

        REVOLVING CREDIT COMMITMENT shall mean, as to any Bank at any time, the
amount initially set forth opposite its name on SCHEDULE 1.1(B) in the column
labeled "Amount of Commitment for Revolving Credit Loans," and thereafter on
SCHEDULE 1 to the most recent Assignment and Assumption Agreement, and REVOLVING
CREDIT COMMITMENTS shall mean the aggregate Revolving Credit Commitments of all
of the Banks.

        REVOLVING CREDIT EURO-RATE OPTION shall mean the option of the Borrower
to have Revolving Credit Loans bear interest at the rate and under the terms and
conditions set forth in Section 4.1.1(ii).

        REVOLVING CREDIT LOANS shall mean collectively and REVOLVING CREDIT LOAN
shall mean separately all Revolving Credit Loans or any Revolving Credit Loan
made by the Banks or one of the Banks to the Borrower pursuant to Section 2.1 or
Paragraph 3(b) of EXHIBIT 2.8.

        REVOLVING CREDIT NOTES shall mean collectively and REVOLVING CREDIT NOTE
shall mean separately all the Amended and Restated Revolving Credit Notes of the
Borrower in the form of EXHIBIT 1.1 evidencing the Revolving Credit Loans
together with all amendments, extensions, renewals, replacements, refinancings
or refundings thereof in whole or in part.

        REVOLVING FACILITY USAGE shall mean at any time the sum of the Revolving
Credit Loans outstanding and the Letters of Credit Outstanding.

        SECTION 20 SUBSIDIARY shall mean the Subsidiary of the bank holding
company controlling any Bank, which Subsidiary has been granted authority by the
Federal Reserve Board to underwrite and deal in certain Ineligible Securities.

        SECURITY AGREEMENT shall mean the Security Agreement in substantially
the form of EXHIBIT 1.1(S) executed and delivered by each of the Loan Parties to
the Agent for the benefit of the Banks.

                                      -24-
<PAGE>

        STANDARD & POOR'S shall mean Standard & Poor's Ratings Services, a
division of The McGraw-Hill Companies, Inc.

        STANDBY LETTER OF CREDIT shall mean a Letter of Credit issued to support
obligations of one or more of the Loan Parties, contingent or otherwise, which
finance the working capital and business needs of the Loan Parties incurred in
the ordinary course of business.

        SUBSIDIARY of any Person at any time shall mean (i) any corporation or
trust of which 50% or more (by number of shares or number of votes) of the
outstanding capital stock or shares of beneficial interest normally entitled to
vote for the election of one or more directors or trustees (regardless of any
contingency which does or may suspend or dilute the voting rights) is at such
time owned directly or indirectly by such Person or one or more of such Person's
Subsidiaries, (ii) any partnership of which such Person is a general partner or
of which 50% or more of the partnership interests is at the time directly or
indirectly owned by such Person or one or more of such Person's Subsidiaries,
(iii) any limited liability company of which such Person is a member or of which
50% or more of the limited liability company interests is at the time directly
or indirectly owned by such Person or one or more of such Person's Subsidiaries
or (iv) any corporation, trust, partnership, limited liability company or other
entity which is controlled by such Person or one or more of such Person's
Subsidiaries.

        SUBSIDIARY SHARES shall have the meaning assigned to that term in
Section 6.1.3.

        SUPERMAJORITY BANKS OF THE AFFECTED CLASS shall mean Banks holding at
least two-thirds (66 2/3) of the sum of the aggregate amount of the outstanding
Loans of the applicable tranche of Term Loans which would be affected by any
modification, supplement or waiver contemplated by the proviso to Section
11.1.2.

        SYNDICATIONS PERIOD shall mean the period between the Closing Date and
the earlier of the following: (a) the date on which the Commitment of PNC Bank
has been reduced to $40,000,000 or less, or (b) the date which is one hundred
twenty (120) days after the Closing Date.

        TELPRO shall mean Telpro Technologies, Inc., a California corporation.

        TELPRO STOCK PURCHASE AGREEMENT shall mean the Stock Purchase and
Recapitalization Agreement dated March 13, 2000 by and among Telpro, the
shareholders of Telpro and the Borrower and any related documents, all of the
foregoing on terms and conditions satisfactory to the Agent in its reasonable
discretion, as the same may be amended or modified from time to time in
accordance with the terms of this Agreement.

        TERM LOANS shall mean collectively and TERM LOAN shall mean separately
all Term Loans A and Term Loans B or any Term Loan A or Term Loan B.

                                      -25-
<PAGE>

        TERM LOANS A shall mean collectively and TERM LOAN A shall mean
separately all Term Loans A or any Term Loan A made by the Bank or one of the
Banks to the Borrower pursuant to Section 3.1.

        TERM LOANS B shall mean collectively and TERM LOAN B shall mean
separately all Term Loans B or any Term Loan B made by the Bank or one of the
Banks to the Borrower pursuant to Section 3.1.

        TERM LOAN A BASE RATE OPTION shall mean the option of the Borrower to
have Term Loans bear interest at the rate and under the terms and conditions set
forth in Section 4.1.2(i).

        TERM LOAN A REQUEST shall mean the meaning given to such term in Section
3.4.

        TERM LOAN B BASE RATE OPTION shall mean the option of the Borrower to
have Term Loans bear interest at the rate and under the terms and conditions set
forth in Section 4.1.2(iii).

        TERM LOAN A COMMITMENT shall mean, as to any Bank at any time, the
amount initially set forth opposite its name on SCHEDULE 1.1(B) in the column
labeled "Amount of Commitment for Term Loans A," and thereafter on SCHEDULE 1 to
the most recent Assignment and Assumption Agreement, and TERM LOAN A COMMITMENTS
shall mean the aggregate Term Loan A Commitments of all of the Banks.

        TERM LOAN B COMMITMENT shall mean, as to any Bank at any time, the
amount initially set forth opposite its name on SCHEDULE 1.1(B) in the column
labeled "Amount of Commitment for Term Loans B," and thereafter on SCHEDULE 1 to
the most recent Assignment and Assumption Agreement, and TERM LOAN B COMMITMENTS
shall mean the aggregate Term Loan B Commitments of all of the Banks.

        TERM LOAN A EURO-RATE OPTION shall mean the option of the Borrower to
have Term Loans A bear interest at the rate and under the terms and conditions
set forth in Section 4.1.2(ii).

        TERM LOAN B EURO-RATE OPTION shall mean the option of the Borrower to
have Term Loans B bear interest at the rate and under the terms and conditions
set forth in Section 4.1.2(iv).

        TERM NOTES shall mean collectively and TERM NOTE shall mean separately
all the Term Notes A and Term Notes B or any Term Note A or Term Note B.

        TERM NOTES A shall mean collectively and TERM NOTE A shall mean
separately all of the Amended and Restated Term Notes A of the Borrower in the
form of EXHIBIT

                                      -26-
<PAGE>

1.1(T)(1) evidencing the Term Loans A, together with all amendments, extensions,
renewals, replacements, refinancings or refunds thereof in whole or in part.

        TERM NOTES B shall mean collectively and TERM NOTE B shall mean
separately all of the Amended and Restated Term Notes B of the Borrower in the
form of EXHIBIT 1.1(T)(2) evidencing the Term Loans B, together with all
amendments, extensions, renewals, replacements, refinancings or refunds thereof
in whole or in part.

        TRANSFEROR BANK shall mean the selling Bank pursuant to an Assignment
and Assumption Agreement.

        UCC COLLATERAL shall mean the property of the Loan Parties in which
security interests are to be granted under the Security Agreement.

        UCI shall mean Utility Consultants, Inc., a Georgia corporation.

        UCI STOCK PURCHASE AGREEMENT shall mean the Stock Purchase Agreement
dated as of May 8, 2000 by and among UCI, the shareholders of UCI and Linc.net
Acquisition Corp. and any related documents, all of the foregoing on terms and
conditions satisfactory to the Agent in its reasonable discretion, as the same
may be amended or modified from time to time in accordance with the terms of
this Agreement.

        WORKING CAPITAL shall mean (a) current assets (excluding cash) of the
Borrower and its Subsidiaries as determined on a consolidated basis, less (b)
current liabilities of the Borrower and its Subsidiaries determined on a
consolidated basis (including current maturities of the Term Loans), PROVIDED
that the Working Capital as of the beginning of a fiscal year with respect to
each Permitted Acquisition during such fiscal year shall be an amount agreed to
among the Borrower and the Agent at the time of such Permitted Acquisition
pursuant to Section 8.2.6(2)(vii) hereof.

        In addition to the foregoing definitions, the following capitalized
terms have the meanings given to them in the referenced sections: AGENT'S FEE,
Exhibit 10; AGENT'S LETTER, Exhibit 10; ANNUAL STATEMENTS, 6.1.9(i); COMMITMENT
FEE, 2.3; FINANCIAL PROJECTIONS, 6.1.9(ii); GOVERNMENTAL ACTS, Exhibit 2.8;
HISTORICAL STATEMENTS, 6.1.9(i); INTERIM STATEMENTS, 6.1.9(i); 2.8.1; LETTER OF
CREDIT, Exhibit 2.8; LETTER OF CREDIT FEE, Exhibit 2.8; LLC INTERESTS, 6.1.3;
LOAN REQUEST, 2.4; MANDATORY PREPAYMENT DATE, 5.5.1; MANDATORY PREPAYMENT OF
EXCESS CASH FLOW, 5.5.1; NOTICES, 11.6; PARTNERSHIP INTERESTS, 6.1.3; PERMITTED
ACQUISITIONS, 8.2.6; REIMBURSEMENT OBLIGATION, Exhibit 2.8; SHARES, 6.1.2;
SUBSIDIARY SHARES, 6.1.3; and UNIFORM COMMERCIAL Code, 6.1.16.

        1.2     CONSTRUCTION.

Unless the context of this Agreement otherwise clearly requires, the following
rules of construction shall apply to this Agreement and each of the other Loan
Documents: (a) references

                                      -27-
<PAGE>

to the plural include the singular, the plural, the part and the whole; "or" has
the inclusive meaning represented by the phrase "and/or," and "including" has
the meaning represented by the phrase "including without limitation"; (b)
references to "determination" of or by the Agent or the Banks shall be deemed to
include good-faith estimates by the Agent or the Banks (in the case of
quantitative determinations) and good-faith beliefs by the Agent or the Banks
(in the case of qualitative determinations) and such determination shall be
conclusive absent manifest error; (C) whenever the Agent or the Banks are
granted the right herein to act in its or their sole discretion or to grant or
withhold consent such right shall be exercised in good faith; (d) the words
"hereof," "herein," "hereunder," "hereto" and similar terms in this Agreement or
any other Loan Document refer to this Agreement or such other Loan Document as a
whole and not to any particular provision of this Agreement or such other Loan
Document; (e) the section and other headings contained in this Agreement or such
other Loan Document and the Table of Contents, preceding this Agreement or such
other Loan Document are for reference purposes only and shall not control or
affect the construction of this Agreement or such other Loan Document or the
interpretation thereof in any respect; (f) article, section, subsection, clause,
schedule and exhibit references are to this Agreement or other Loan Document, as
the case may be, unless otherwise specified; (g) reference to any Person
includes such Person's successors and assigns but, if applicable, only if such
successors and assigns are permitted by this Agreement or such other Loan
Document, as the case may be, and reference to a Person in a particular capacity
excludes such Person in any other capacity; (h) reference to any agreement
(including this Agreement and any other Loan Document together with the
schedules and exhibits hereto or thereto), document or instrument means such
agreement, document or instrument as amended, modified, replaced, substituted
for, superseded or restated; (i) relative to the determination of any period of
time, "from" means "from and including," "to" means "to but excluding," and
"through" means "through and including"; and (j) references to "shall" and
"will" are intended to have the same meaning.

        1.3     ACCOUNTING PRINCIPLES.

        Except as otherwise provided in this Agreement, all computations and
determinations as to accounting or financial matters and all financial
statements to be delivered pursuant to this Agreement shall be made and prepared
in accordance with GAAP (including principles of consolidation where
appropriate), and all accounting or financial terms shall have the meanings
ascribed to such terms by GAAP; PROVIDED, HOWEVER, that all accounting terms
used in Section 8.2 [Negative Covenants] (and all defined terms used in the
definition of any accounting term used in Section 8.2 shall have the meaning
given to such terms (and defined terms) under GAAP as in effect on the date
hereof applied on a basis consistent with those used in preparing the Annual
Statements referred to in Section 6.1.9(i) [Historical Statements].

                                      -28-

<PAGE>

                2.      REVOLVING CREDIT FACILITY

        2.1     REVOLVING CREDIT COMMITMENTS.

        Subject to the terms and conditions hereof and relying upon the
representations and warranties herein set forth, each Bank severally agrees to
make Revolving Credit Loans to the Borrower at any time or from time to time on
or after the date hereof to the Expiration Date PROVIDED that (i) after giving
effect to such Revolving Credit Loans, the aggregate amount of the Revolving
Credit Loans plus the Letters of Credit Outstanding does not exceed the
Borrowing Base, and (ii) after giving effect to such Revolving Credit Loans, the
aggregate amount of Revolving Credit Loans from each Bank shall not exceed such
Bank's Revolving Credit Commitment minus such Bank's Ratable Share of the
Letters of Credit Outstanding.

        Within such limits of time and amount and subject to the other
provisions of this Agreement, the Borrower may borrow, repay and reborrow
pursuant to this Section 2.1.

        2.2     NATURE OF BANKS' OBLIGATIONS WITH RESPECT TO REVOLVING CREDIT
                LOANS.

        Each Bank shall be obligated to participate in each request for
Revolving Credit Loans pursuant to Section 2.4 [Revolving Credit Loan Requests]
in accordance with its Ratable Share. The aggregate of each Bank's Revolving
Credit Loans outstanding hereunder to the Borrower at any time shall never
exceed its Revolving Credit Commitment minus its Ratable Share of the Letter of
Credit Outstandings. The obligations of each Bank hereunder are several. The
failure of any Bank to perform its obligations hereunder shall not affect the
Obligations of the Borrower to any other party nor shall any other party be
liable for the failure of such Bank to perform its obligations hereunder. The
Banks shall have no obligation to make Revolving Credit Loans hereunder on or
after the Expiration Date.

        2.3     COMMITMENT FEES.

        Accruing from the date hereof until the Expiration Date, the Borrower
agrees to pay to the Agent for the account of each Bank, as consideration for
such Bank's Revolving Credit Commitment hereunder, a nonrefundable commitment
fee (the "COMMITMENT FEE") equal to (a) from the date hereof until the Initial
Adjustment Date, 1/2% per annum (computed on the basis of a year of 365 or 366
days, as the case may be, and actual days elapsed) on the average daily
difference between the amount of (i) such Bank's Revolving Credit Commitment as
the same may be constituted from time to time and (ii) the sum of such Bank's
Revolving Credit Loans outstanding plus its Ratable Share of Letters of Credit
Outstanding and (b) from the Initial Adjustment Date until the Expiration Date,
at the rate per annum based upon the Leverage Ratio, as set forth on the Pricing
Grid. All Commitment Fees shall be payable in arrears on the last Business Day
of each June, September, December and March after the date hereof and on the
Expiration Date or upon acceleration of the Notes.

                                      -29-

<PAGE>

        2.4     REVOLVING CREDIT LOAN REQUESTS.

        Except as otherwise provided herein, the Borrower may from time to time
prior to the Expiration Date request the Banks to make Revolving Credit Loans,
or renew or convert the Interest Rate Option applicable to existing Revolving
Credit Loans or Term Loans pursuant to Section 4.2, by delivering to the Agent,
not later than 11:00 a.m., Pittsburgh time, (i) three (3) Business Days prior to
the proposed Borrowing Date with respect to the making of Revolving Credit Loans
to which the Euro-Rate Option applies or the conversion to or the renewal of the
Euro-Rate Option for any Loans; and (ii) either the proposed Borrowing Date with
respect to the making of a Revolving Credit Loan to which the Base Rate Option
applies or the last day of the preceding Euro-Rate Interest Period with respect
to the conversion to the Base Rate Option for any Loan, of a duly completed
request therefor substantially in the form of EXHIBIT 2.4 or a request by
telephone immediately confirmed in writing by letter, facsimile or telex in such
form (each, a "LOAN REQUEST"), it being understood that the Agent may rely on
the authority of any individual making such a telephonic request without the
necessity of receipt of such written confirmation. Each Loan Request shall be
irrevocable and shall specify (i) the proposed Borrowing Date; (ii) the
aggregate amount of the proposed Loans comprising each Borrowing Tranche, which
shall be in integral multiples of $250,000 and not less than $500,000 for each
Borrowing Tranche to which the Euro-Rate Option applies and not less than the
lesser of $250,000 or the maximum amount available for Borrowing Tranches to
which the Base Rate Option applies; (iii) whether the Euro-Rate Option or Base
Rate Option shall apply to the proposed Loans comprising the applicable
Borrowing Tranche; and (iv) in the case of a Borrowing Tranche to which the
Euro-Rate Option applies, an appropriate Euro-Rate Interest Period for the Loans
comprising such Borrowing Tranche.

        2.5     MAKING REVOLVING CREDIT LOANS.

        The Agent shall, promptly after receipt by it of a Loan Request pursuant
to Section 2.4 [Revolving Credit Loan Requests], notify the Banks of its receipt
of such Loan Request specifying: (i) the proposed Borrowing Date and the time
and method of disbursement of the Revolving Credit Loans requested thereby; (ii)
the amount and type of each such Revolving Credit Loan and the applicable
Euro-Rate Interest Period (if any); and (iii) the apportionment among the Banks
of such Revolving Credit Loans as determined by the Agent in accordance with
Section 2.2 [Nature of Banks' Obligations]. Each Bank shall remit the principal
amount of each Revolving Credit Loan to the Agent such that the Agent is able
to, and the Agent shall, to the extent the Banks have made funds available to it
for such purpose and subject to Section 7.2 [Each Additional Loan], fund such
Revolving Credit Loans to the Borrower in U.S. Dollars and immediately available
funds at the Principal Office prior to 2:00 p.m., Pittsburgh time, on the
applicable Borrowing Date, PROVIDED that if any Bank fails to remit such funds
to the Agent in a timely manner, the Agent may elect in its sole discretion to
fund with its own funds the Revolving Credit Loans of such Bank on such
Borrowing Date, and such Bank shall be subject to the repayment obligation in
Paragraph 16 of EXHIBIT 10.

                                      -30-
<PAGE>

        2.6     REVOLVING CREDIT NOTES.

        The Obligation of the Borrower to repay the aggregate unpaid principal
amount of the Revolving Credit Loans made to it by each Bank, together with
interest thereon, shall be evidenced by a Revolving Credit Note dated the
Closing Date payable to the order of such Bank in a face amount equal to the
Revolving Credit Commitment of such Bank.

        2.7     USE OF PROCEEDS.

        The proceeds of the Revolving Credit Loans shall be used to provide a
portion of the proceeds required for any Permitted Acquisition, to pay related
fees and expenses and to fund working capital and general corporate needs and in
accordance with Section 8.1.10 [Use of Proceeds].

        2.8     LETTER OF CREDIT SUBFACILITY.

        The Letters of Credit, in the aggregate amount not to exceed the Letter
of Credit Sublimit, shall be described and governed by the provisions of EXHIBIT
2.8.

                3.      TERM LOANS

        3.1     TERM LOAN A COMMITMENTS AND TERM LOAN B COMMITMENTS.

        Subject to the terms and conditions hereof, and relying upon the
representations and warranties herein set forth, each Bank severally agrees to
make (i) a Term Loan A to the Borrower at any time or from time to time on or
after the Closing Date to December 31, 2000, in such principal amount as the
Borrower shall request up to, but not exceeding such Bank's Term Loan A
Commitment and (ii) a Term Loan B to the Borrower on the Closing Date in the
principal amount of such Bank's Term Loan B Commitment.

        The aggregate amount of the Term Loans A and Term Loans B funded by each
Bank shall at no time exceed such Bank's Term Loan A Commitment and Term Loan B
Commitment, respectively.

        3.2     NATURE OF BANKS' OBLIGATIONS WITH RESPECT TO TERM LOANS.

        The obligations of each Bank to make Term Loans to the Borrower shall be
in the proportion that such Bank's Term Loan A Commitment and Term Loan B
Commitment bears to the Term Loan A Commitments and Term Loan B Commitments of
all Banks to the Borrower, but each Bank's Term Loan A and Term Loan B to the
Borrower shall never exceed its Term Loan A Commitment and Term Loan B
Commitment. The failure of any Bank to make a Term Loan shall not relieve any
other Bank of its obligations to make a Term Loan nor shall it impose any
additional liability on any other Bank hereunder. The Banks shall have no
obligation to make a Term Loan A after December 31, 2000 or to make a Term Loan
B after the Closing Date.

                                      -31-
<PAGE>

The Term Loan Commitments are not revolving credit commitments, and the Borrower
shall not have the right to borrow, repay and reborrow under Section 3.1 [Term
Loan Commitments].

        3.3     COMMITMENT FEES.

        Accruing from the date hereof until December 31, 2000, the Borrower
agrees to pay to the Agent for the account of each Bank, as consideration for
such Bank's Term Loan A Commitment hereunder, a nonrefundable commitment fee
(the "TERM LOAN A COMMITMENT FEE") equal to (a) from the date hereof until the
Term Loans A outstanding equal or exceed $50,000,000, 3/4% per annum (computed
on the basis of a year of 365 or 366 days, as the case may be, and actual days
elapsed) on the average daily difference between the amount of (i) such Bank's
Term Loan A Commitment and (ii) the sum of such Bank's Term Loan A then
outstanding and (b) from the date on which the Term Loans A outstanding equal or
exceed $50,000,000 until December 31, 2000, 1/2% per annum (computed on the
basis of a year of 365 or 366 days, as the case may be, and actual days elapsed)
on the average daily difference between the amount of (i) such Bank's Term Loan
A Commitment and (ii) the sum of such Bank's Term Loan A then outstanding. All
Commitment Fees shall be payable in arrears on the last Business Day of each
June, September and December after the date hereof or upon acceleration of the
Notes.

        3.4     TERM LOAN A REQUESTS.

        Except as otherwise provided herein, the Borrower may from time to time
prior to December 31, 2000, request the Banks to make Term Loans A by delivering
to the Agent, not later than 11:00 a.m., Pittsburgh time, (i) three (3) Business
Days prior to the proposed Borrowing Date with respect to the making of Term
Loans A to which the Euro-Rate Option applies; and (ii) on the proposed
Borrowing Date with respect to the making of Term Loans A to which the Base Rate
Option Applies, of a duly completed request therefor substantially in the form
of Exhibit 3.4 or a request by telephone immediately confirmed in writing by
letter, facsimile or telex in such form (each, a "Term Loan A Loan Request"), it
being understood that the Agent may rely on the authority of any individual
making such a telephonic request without the necessity of receipt of such
written confirmation. Each Term Loan A Request shall be irrevocable and shall
specify (i) the proposed Borrowing Date; (ii) the aggregate amount of the
proposed Loans comprising each Borrowing Tranche, which shall be not less than
$3,000,000 for each Borrowing Tranche to which the Euro-Rate Option applies and
not less than the lesser of $1,000,000 or the maximum amount available for
Borrowing Tranches to which the Base Rate Option applies; (iii) whether the
Euro-Rate Option or Base Rate Option shall apply to the proposed Loans
comprising the applicable Borrowing Tranche; and (iv) in the case of a Borrowing
Tranche to which the Euro-Rate Option applies, an appropriate Euro-Rate Interest
Period for the Loans comprising such Borrowing Tranche.

                                      -32-

<PAGE>

        3.5     MAKING TERM LOANS A.

        The Agent shall, promptly after receipt by it of a Term Loan A Loan
Request pursuant to Section 3.4 [Term Loan A Requests], notify the Banks of its
receipt of such Term Loan A Request specifying: (i) the proposed Borrowing Date
and the time and method of disbursement of the Term Loans A requested thereby;
(ii) the amount and type of each such Term Loans A and the applicable Euro-Rate
Interest Period (if any); and (iii) the apportionment among the Banks of such
Term Loans A as determined by the Agent in accordance with Section 3.2 [Nature
of Banks' Obligations]. Each Bank shall remit the principal amount of each Term
Loan A to the Agent such that the Agent is able to, and the Agent shall, to the
extent the Banks have made funds available to it for such purpose and subject to
Section 7.2 [Each Additional Loan], fund such Term Loans A to the Borrower in
U.S. Dollars and immediately available funds at the Principal Office prior to
2:00 p.m., Pittsburgh time, on the applicable Borrowing Date, PROVIDED that if
any Bank fails to remit such funds to the Agent in a timely manner, the Agent
may elect in its sole discretion to fund with its own funds the Term Loan A of
such Bank on such Borrowing Date, and such Bank shall be subject to the
repayment obligation in Paragraph 16 of EXHIBIT 10.

        3.6     TERM LOAN NOTES.

        The Obligation of the Borrower to repay the unpaid principal amount of
the Term Loans made to it by each Bank, together with interest thereon, shall be
evidenced by a Term Note A and a Term Note B, payable to the order of each Bank
in a face amount equal to the Term Loan A and the Term Loan B of such Bank.

        The principal amount of the Term Loans A shall be payable as follows:

<TABLE>
<CAPTION>
                                                                   TERM LOANS A
             REPAYMENT DATE                                    (QUARTERLY PAYMENT*)
             --------------                                    --------------------
<S>                                                            <C>
Last Business Day of March, June, September and
December, 2001                                                        2.50%

Last Business Day of March, June, September and
December, 2002                                                        3.00%

Last Business Day of March, June, September and
December, 2003                                                        4.50%

Last Business Day of March, June, September and
December, 2004                                                        6.25%

Last Business Day of March, June, September and
December, 2005                                                        8.75%

TOTAL                                                                  100%
</TABLE>

                                      -33-
<PAGE>

*Each quarterly payment is expressed as a percentage of the principal amount of
the Term Loans A outstanding on December 31, 2000.

The outstanding principal and all accrued and unpaid interest with respect to
the Term Loans A, if not sooner paid or due and payable, shall be payable on the
last Business Day of December 2005.

        The principal amount of the Term Loans B shall be payable as follows:

<TABLE>
<CAPTION>
                                                                   TERM LOANS B
             REPAYMENT DATE                                    (QUARTERLY PAYMENT)
             --------------                                    -------------------
<S>                                                            <C>
Last Business Day of June, September, December, 2000
and March, 2001                                                      $250,000

Last Business Day of June, September, December, 2001
and March, 2002                                                      $250,000

Last Business Day of June, September, December, 2002
and March, 2003                                                      $250,000

Last Business Day of June, September, December, 2003
and March, 2004                                                      $250,000

Last Business Day of June, September, December, 2004
and March, 2005                                                      $250,000

Last Business Day of June, September, December, 2005
and March, 2006                                                   $11,875,000

Last Business Day of June, September, December, 2006
and March, 2007                                                   $11,875,000

TOTAL                                                            $100,000,000
</TABLE>

The outstanding principal and all accrued and unpaid interest with respect to
the Term Loans B, if not sooner paid or due and payable, shall be payable on the
last Business Day of March 2007.

        3.7     USE OF PROCEEDS.

        The proceeds of the Term Loans A shall be used to refinance a portion of
the Term Loans outstanding under the Original Credit Agreement and to finance
Permitted Acquisitions (and related fees and expenses) on or before December 31,
2000 in accordance with Section 8.1.10 [Use of Proceeds]. The proceeds of the
Term Loans B shall be used to refinance $100,000,000 of the Term Loans
outstanding under the Original Credit Agreement and in accordance with Section
8.1.10 [Use of Proceeds].

                                      -34-
<PAGE>

                4.      INTEREST RATES

        4.1     INTEREST RATE OPTIONS.

        The Borrower shall pay interest in respect of the outstanding unpaid
principal amount of the Loans as selected by it from the Base Rate Option or
Euro-Rate Option set forth below applicable to the Loans, it being understood
that, subject to the provisions of this Agreement, the Borrower may select
different Interest Rate Options and different Euro-Rate Interest Periods to
apply simultaneously to the Loans comprising different Borrowing Tranches and
may convert to or renew one or more Interest Rate Options with respect to all or
any portion of the Loans comprising any Borrowing Tranche, PROVIDED that there
shall not be at any one time outstanding more than fifteen (15) Borrowing
Tranches in the aggregate among all of the Loans. If at any time the designated
rate applicable to any Loan made by any Bank exceeds such Bank's highest lawful
rate, the rate of interest on such Bank's Loan shall be limited to such Bank's
highest lawful rate.

                        4.1.1   REVOLVING CREDIT INTEREST RATE OPTIONS.

        The Borrower shall have the right to select from the following Interest
Rate Options applicable to the Revolving Credit Loans:

                                (i)     REVOLVING CREDIT BASE RATE OPTION: A
fluctuating rate per annum (computed on the basis of a year of 365 or 366 days,
as the case may be, and actual days elapsed) equal to the Base Rate plus the
Applicable Margin, such interest rate to change automatically from time to time
effective as of the effective date of each change in the Base Rate; or

                                (ii)    REVOLVING CREDIT EURO-RATE OPTION: A
rate per annum (computed on the basis of a year of 360 days and actual days
elapsed) equal to the Euro-Rate plus the Applicable Margin.

                        4.1.2   TERM LOAN INTEREST RATE OPTIONS.

        The Borrower shall have the right to select from the following Interest
Rate Options applicable to the Term Loans:

                                (i)     TERM LOAN A BASE RATE OPTION: A
fluctuating rate per annum (computed on the basis of a year of 365 or 366 days,
as the case may be, and actual days elapsed) equal to the Base Rate plus the
Applicable Margin, such interest rate to change automatically from time to time
effective as of the effective date of each change in the Base Rate;

                                (ii)    TERM LOAN A EURO-RATE OPTION: A rate per
annum (computed on the basis of a year of 360 days and actual days elapsed)
equal to the Euro-Rate plus the Applicable Margin;

                                      -35-
<PAGE>

                                (iii)   TERM LOAN B BASE RATE OPTION: A
fluctuating rate per annum (computed on the basis of a year of 365 or 366 days,
as the case may be, and actual days elapsed) equal to the Base Rate plus 250
basis points, such interest rate to change automatically from time to time
effective as of the effective date of each change in the Base Rate; or

                                (iv)    TERM LOAN B EURO-RATE OPTION: A rate per
annum (computed on the basis of a year of 360 days and actual days elapsed)
equal to the Euro-Rate plus 400 basis points.

                4.1.3   RATE QUOTATIONS.

                The Borrower may call the Agent on or before the date on which a
Loan Request is to be delivered to receive an indication of the rates then in
effect, but it is acknowledged that such projection shall not be binding on the
Agent or the Banks nor affect the rate of interest which thereafter is actually
in effect when the election is made.

        4.2     INTEREST PERIODS.

        At any time when the Borrower shall select, convert to or renew a
Euro-Rate Option, the Borrower shall notify the Agent thereof at least three (3)
Business Days prior to the effective date of such Euro-Rate Option by delivering
a Loan Request. The notice shall specify the Euro-Rate Interest Period during
which such Interest Rate Option shall apply, such Interest Period to be (i) one
Month if the Borrower selects the Euro-Rate Option during the Syndications
Period, and (ii) one, two, three or six Months if the Borrower selects the
Euro-Rate Option after the Syndications Period has ended. The following
provisions shall apply to any selection of, renewal of, or conversion to a
Euro-Rate Option:

                4.2.1   AMOUNT OF BORROWING TRANCHE.

        each Borrowing Tranche of Euro-Rate Loans shall be in integral multiples
of $250,000 and not less than $500,000;

                4.2.2   RENEWALS.

        in the case of the renewal of a Euro-Rate Option at the end of an
Euro-Rate Interest Period, the first day of the new Euro-Rate Interest Period
shall be the last day of the preceding Euro-Rate Interest Period, without
duplication in payment of interest for such day.

        4.3     INTEREST AFTER DEFAULT.

        To the extent permitted by Law, (i) upon the occurrence of an Event of
Default under Section 9.1.1, 9.1.3, 9.1.14 or 9.1.15 and until such time such
Event of Default shall have been cured or waived, or (ii) with the consent of
the Required Banks upon the occurrence of any

                                      -36-
<PAGE>

Event of Default other than as set forth in clause (i) above that has not been
cured or waived within thirty (30) days after the occurrence of such Event of
Default:

                        4.3.1   LETTER OF CREDIT FEES, INTEREST RATE.

                        the Letter of Credit Fees and the rate of interest for
each Loan otherwise applicable pursuant to EXHIBIT 2.8 or Section 4.1 [Interest
Rate Options], respectively, shall be increased by two percent (2%) per annum;
and

                        4.3.2   OTHER OBLIGATIONS.

                        each other Obligation hereunder if not paid when due (or
in the case of expenses and indemnities, within 30 days after demand) shall bear
interest at a rate per annum equal to the sum of the rate of interest applicable
under the Revolving Credit Base Rate Option plus an additional two percent (2%)
per annum from the time such Obligation becomes due and payable and until it is
paid in full.

                        4.3.3   ACKNOWLEDGMENT.

                        The Borrower acknowledges that the increase in rates
referred to in this Section 4.3 reflects, among other things, the fact that such
Loans or other amounts have become a substantially greater risk given their
default status and that the Banks are entitled to additional compensation for
such risk; and all such interest shall be payable by Borrower upon demand by
Agent.

                4.4     EURO-RATE UNASCERTAINABLE; ILLEGALITY.

                        4.4.1   EURO-RATE UNASCERTAINABLE.

                        If any Bank reasonably determines (which determination
shall be final and conclusive) that, by reason of circumstances affecting the
interbank eurodollar market generally, deposits in dollars (in the applicable
amounts) are not being offered to banks in the interbank eurodollar market for
the selected term, or adequate means do not exist for ascertaining the
Euro-Rate, then such Bank shall give notice thereof to the Agent, and the Agent
shall give notice thereof to the Borrower and the other Banks. Thereafter, until
the Agent notifies the Borrower and the Banks that the circumstances giving rise
to such suspension no longer exist, (a) the availability of the Euro-Rate Option
shall be suspended, and (b) the interest rate for all Borrowing Tranches then
bearing interest under the Euro-Rate Option shall be converted at the expiration
of the then current Euro-Rate Interest Periods to the Base Rate Option.

                        4.4.2   ILLEGALITY.

                        If, after the date of this Agreement, any Bank shall
reasonably determine (which determination shall be final and conclusive) that
any enactment, promulgation or

                                      -37-
<PAGE>

adoption of or any change in any applicable law, rule or regulation, or any
change in the interpretation or administration thereof by a governmental
authority, central bank or comparable agency charged with the interpretation or
administration thereof, or compliance by such Bank with any guideline, request
or directive (whether or not having the force of law) of any such authority,
central bank or comparable agency shall make it unlawful or impossible for such
Bank to make or maintain or fund loans under the Euro-Rate Option, such Bank
shall notify the Borrower and the other Banks. Upon receipt of such notice,
until such Bank notifies the Borrower and the other Banks that the circumstances
giving rise to such determination no longer apply, (a) the availability of the
Euro-Rate Option shall be suspended, and (b) the interest rate on all Borrowing
Tranches then bearing interest under the Euro-Rate Option shall be converted to
the Base Rate Option either (i) on the last day of the then current Euro-Rate
Interest Periods if such Bank may lawfully continue to maintain Loans under the
Euro-Rate Option to such day, or (ii) immediately if such Bank may not lawfully
continue to maintain Loans under the Euro-Rate Option.

        4.5     SELECTION OF INTEREST RATE OPTIONS.

        If the Borrower fails to select a new Euro-Rate Interest Period to apply
to any Borrowing Tranche of Loans under the Euro-Rate Option at the expiration
of an existing Euro-Rate Interest Period applicable to such Borrowing Tranche in
accordance with the provisions of Section 4.2, the Borrower shall be deemed to
have converted such Borrowing Tranche to the Revolving Credit Base Rate Option
or Term Loan Base Rate Option, as applicable, commencing upon the last day of
the existing Euro-Rate Interest Period.

                5.      PAYMENTS

        5.1     PAYMENTS.

        All payments and prepayments to be made in respect of principal,
interest, Commitment Fees, Letter of Credit Fees, Agent's Fee or other fees or
amounts due from the Borrower hereunder shall be payable prior to 1:00 p.m.,
Pittsburgh time, on the date when due without presentment, demand, protest or
notice of any kind, all of which are hereby expressly waived by the Borrower,
and without set-off, counterclaim or other deduction of any nature, and an
action therefor shall immediately accrue. Such payments shall be made to the
Agent at the Principal Office for the ratable accounts of the Banks with respect
to the Loans in U.S. Dollars and in immediately available funds, and the Agent
shall promptly distribute such amounts to the Banks in immediately available
funds, PROVIDED that in the event payments are received by 1:00 p.m., Pittsburgh
time, by the Agent with respect to the Loans and such payments are not
distributed to the Banks on the same day received by the Agent, the Agent shall
pay the Banks the Federal Funds Effective Rate with respect to the amount of
such payments for each day held by the Agent and not distributed to the Banks.
The Agent's and each Bank's statement of account, ledger or other relevant
record shall, in the absence of manifest error, be conclusive as

                                      -38-
<PAGE>

the statement of the amount of principal of and interest on the Loans and other
amounts owing under this Agreement and shall be deemed an "account stated."

        5.2     PRO RATA TREATMENT OF BANKS.

        Each borrowing shall be allocated to each Bank according to its Ratable
Share, and each selection of, conversion to or renewal of any Interest Rate
Option and each payment or prepayment by the Borrower with respect to principal,
interest, Commitment Fees, Letter of Credit Fees, or other fees (except for the
Agent's Fee) or amounts due from the Borrower hereunder to the Banks with
respect to the Loans, shall (except as provided in Section 4.4 [Euro-Rate
Unascertainable; Illegality], or Section 5.6 [Additional Compensation in Certain
Circumstances]) be made in proportion to the applicable Loans outstanding from
each Bank and, if no such Loans are then outstanding, in proportion to the
Ratable Share of each Bank.

        5.3     INTEREST PAYMENT DATES.

        Interest on Loans to which the Base Rate Option applies shall be due and
payable in arrears on the last Business Day of each June, September, December
and March after the date hereof and on the respective dates on which the Loans
mature or upon acceleration of the Notes. Interest on Loans to which the
Euro-Rate Option applies shall be due and payable on the last day of each
Euro-Rate Interest Period for those Loans and, if such Euro-Rate Interest Period
is longer than three (3) Months, also on the 90th day of such Euro-Rate Interest
Period. Interest on the principal amount of each Loan or other monetary
Obligation shall be due and payable on demand after such principal amount or
other monetary Obligation becomes due and payable (whether on the stated
maturity date, upon acceleration or otherwise).

        5.4     VOLUNTARY PREPAYMENTS.

                5.4.1   RIGHT TO PREPAY.

                The Borrower shall have the right at its option from time to
time to prepay the Loans in whole or part without premium or penalty (except as
provided in Section 5.6 [Additional Compensation in Certain Circumstances]):

                        (i)     at any time with respect to any Loan to which
the Base Rate Option applies,

                        (ii)    on the last day of the applicable Euro-Rate
Interest Period with respect to Loans to which a Euro-Rate Option applies,

                        (iii)   on the date specified in a notice by any Bank
pursuant to Section 4.4 [Euro-Rate Unascertainable, Etc.] with respect to any
Loan to which a Euro-Rate Option applies.

                                      -39-
<PAGE>

                Whenever the Borrower desires to prepay any part of the Loans,
it shall provide a prepayment notice to the Agent by 1:00 p.m. at least one (1)
Business Day prior to the date of prepayment of Loans setting forth the
following information:

                (x)     the date, which shall be a Business Day, on which the
proposed prepayment is to be made;

                (y)     a statement indicating the application of the prepayment
between the Revolving Credit Loans and Term Loans; and

                (z)     the total principal amount of such prepayment, which
shall not be less than $500,000.

                All prepayment notices shall be irrevocable. The principal
amount of the Loans for which a prepayment notice is given shall be due and
payable on the date specified in such prepayment notice as the date on which the
proposed prepayment is to be made. All Term Loan prepayments permitted pursuant
to this Section 5.4.1 shall be applied pro rata between Term Loans A and Term
Loans B and, with respect to such payments made upon the Term Loans A and Term
Loans B, pro rata to the unpaid installments of principal. Except as provided in
Section 4.4 [Euro-Rate Unascertainable; Illegality], if the Borrower prepays a
Loan but fails to specify the applicable Borrowing Tranche which the Borrower is
prepaying, the prepayment shall be applied (i) first to Revolving Credit Loans
and then to Term Loans; and (ii) after giving effect to the allocations in
clause (i) above and in the preceding sentence, first to Loans to which the Base
Rate Option applies, then to Loans to which the Euro-Rate Option applies. Any
prepayment hereunder shall be subject to the Borrower's Obligation to indemnify
the Banks under Section 5.6.2 [Indemnity].

                5.4.2   VOLUNTARY REDUCTION OF REVOLVING CREDIT COMMITMENT.

                The Borrower shall have the right upon not less than three (3)
Business Days prior written notice to the Agent to irrevocably reduce the amount
of the Revolving Credit Commitment; PROVIDED that any such termination or
reduction of the Revolving Credit Commitment shall not be permitted if after
giving effect thereto and to any prepayment of the Revolving Credit Loans made
on the effective date of such reduction, the Revolving Facility Usage would
exceed the Revolving Credit Commitment then in effect. Any such reduction shall
be in a minimum amount of $500,000 or a whole multiple of $100,000 in excess
thereof and shall reduce permanently the Revolving Credit Commitment then in
effect.

        5.5     MANDATORY PREPAYMENTS.

                5.5.1   EXCESS CASH FLOW.

                Within one hundred twenty-five (125) days of each fiscal year
end of the Borrower (each, a "MANDATORY PREPAYMENT DATE"), the Borrower shall
make a mandatory

                                      -40-
<PAGE>

prepayment of principal on the Term Loans as set forth below for the immediately
preceding fiscal year, subject to a credit for voluntary prepayments made
pursuant to Section 5.4 [Voluntary Prepayments] during the immediately preceding
fiscal year (each, a "MANDATORY PREPAYMENT OF EXCESS CASH FLOW"):

<TABLE>
<CAPTION>
               LEVERAGE RATIO                                      MANDATORY PREPAYMENT
               --------------                                      --------------------
<S>                                                              <C>
Greater than 3.0                                                 75% of Excess Cash Flow

Less than or equal to 3.0 but greater than 2.5                   50% of Excess Cash Flow

Less than or equal to 2.5                                         0% of Excess Cash Flow
</TABLE>

Each Mandatory Prepayment of Excess Cash Flow shall be applied as set forth
in Section 5.5.3. To the extent that a Mandatory Prepayment of Excess Cash Flow
exceeds the outstanding principal amount of the Term Loans, such prepayment
shall be limited to the amount necessary to prepay the Term Loans in full.

                5.5.2   SALE OF ASSETS; CASUALTY EVENT; SALE OF DEBT OR EQUITY
                        SECURITIES.

                (a)     Within ten (10) Business Days of any sale of assets
authorized by Section 8.2.7(v) [Disposition of Assets or Subsidiaries], the
Borrower shall make a mandatory prepayment of principal on the Term Loans equal
to the after-tax proceeds of such sale (as estimated in good faith by the
Borrower). All prepayments pursuant to this Section 5.5.2(a) shall be applied as
set forth in Section 5.5.3. Notwithstanding the foregoing, no prepayment shall
be required with respect to the (i) net proceeds from such sale of assets unless
such proceeds, exceed $500,000 in any fiscal year and then only to the extent of
such excess, (ii) net proceeds from sales of assets to the extent that the Loan
Parties establish a reserve in accordance with GAAP with respect to liabilities
related to such sale, and (iii) net proceeds from sales of assets if the
Borrower certifies to the Agent that it reasonably expects such net proceeds to
be used to purchase substitute or replacement assets for use in the business of
the Borrower or its Subsidiaries within twelve (12) months of the date of
disposition. In the case of item (ii), the Borrower shall make a mandatory
prepayment of the net proceeds established as a reserve at such time as the
reserve is discontinued and to the extent that such liabilities have not been
incurred by the Loan Parties, subject to the provision of clause (i). In the
case of item (iii), in the event that such purchase has not occurred within
twelve (12) months, the Borrower shall, subject to the provision of clause (i),
make a mandatory prepayment of all net proceeds not so expended.

                (b)     Within ten (10) Business Days of any Casualty Event by
the Borrower or any Subsidiary of the Borrower, the Borrower shall make a
mandatory prepayment of principal on the Term Loans equal to 100% of the net
proceeds of such Casualty Event. All prepayments pursuant to this Section
5.5.2(b) shall be applied as set forth in Section 5.5.3. Notwithstanding the
foregoing, no prepayment shall be required with respect to the (i) net

                                      -41-
<PAGE>

proceeds from Casualty Events unless such proceeds exceed $500,000 in any fiscal
year and then only to the extent of such excess, and (ii) net proceeds from
Casualty Events if the Borrower certifies to the Agent that it reasonably
expects such net proceeds to be used to purchase substitute or replacement
assets for use in the business of the Borrower or its Subsidiaries within twelve
(12) months of the date of disposition. In the event that such purchase has not
occurred within twelve (12) months, the Borrower shall, subject to the provision
of clause (i) of the preceding sentence, make a mandatory prepayment of all net
proceeds not so expended.

                (c)     Within ten (10) Business Days of the sale of any debt
securities (other than Indebtedness permitted under Section 8.2.1) or any equity
securities, other than sales to management, directors, officers and employees of
the Loan Parties, the Borrower shall make a mandatory prepayment of principal of
the Term Loans equal to 100% (except, in the case of a public equity offering,
50%) of the net proceeds of such issuance of debt or equity securities or
contributions to capital (other than contributions to capital received from Bank
One Corporation, Saunders Karp & Megrue, Carlisle Enterprises or any wholly
owned Subsidiary of any of the foregoing entities or any other investor who
invests at the same time as any of the foregoing entities) (in each case after
deduction of brokerage fees and expenses directly relating to such sale or
issuance) as estimated in good faith by the Borrower. All prepayments pursuant
to this Section 5.5.2(c) shall be applied to the Term Loans in the same manner
set forth in Section 5.5.3.

                5.5.3   APPLICATION AMONG TERM LOANS AND INTEREST RATE OPTIONS.

                Mandatory prepayments will first be applied PRO RATA between
Term Loans A and Term Loans B, and with respect to such payments made upon the
Term Loans A and the Term Loans B, PRO RATA to the remaining scheduled
amortization payments thereunder; PROVIDED, notwithstanding the foregoing and
provided there are principal amounts outstanding under the Term Loans A, any
Bank with a Term Loan B outstanding shall have the right to decline to have any
mandatory prepayment applied to its Term Loan B, in which case that portion of
the mandatory prepayment which would have been paid to such declining Bank or
Banks with Term Loans B shall be applied to the Term Loans A outstanding pro
rata to the remaining scheduled amortization payments thereunder until paid in
full, then to the Term Loans B as provided for above. In the event that both the
Term Loans A and the Term Loans B are paid in full, the mandatory prepayment
shall be applied pro rata to the Revolving Credit Loans. Upon receipt of any
mandatory prepayment from the Borrower, the Agent shall give notice to the Banks
which hold Term Loans B, and in the event that any such Bank does not provide
notice to the Agent declining such payment within two (2) Business Day after
receipt of notice from the Agent, such Bank shall be deemed to have waived its
right to decline such mandatory prepayment with respect to its Term Loan B.

                All prepayments required pursuant to this Section 5.5 shall
first be applied among the Interest Rate Options to the principal amount of the
Loans subject to the Base Rate Option, then to Loans subject to a Euro-Rate
Option. In accordance with Section 5.6.2 [Indemnity], the Borrower shall
indemnify the Banks for any loss or expense, including loss of

                                      -42-
<PAGE>

margin, incurred with respect to any such prepayments applied against Loans
subject to a Euro-Rate Option on any day other than the last day of the
applicable Euro-Rate Interest Period.

                5.5.4   BORROWING BASE EXCEEDED.

                Whenever the outstanding principal balance of the Revolving
Credit Loans plus the aggregate undrawn face amount of outstanding Letters of
Credit issued pursuant to Exhibit 2.8 exceed the Borrowing Base, the Borrower
shall make, within five (5) Business Days after the Borrower learns of such
excess and whether or not the Agent has given notice to such effect, a mandatory
payment of principal equal to the excess of the Revolving Facility Usage over
the Borrowing Base.

        5.6     ADDITIONAL COMPENSATION IN CERTAIN CIRCUMSTANCES.

                5.6.1   INCREASED COSTS OR REDUCED RETURN RESULTING FROM TAXES,
                        RESERVES, CAPITAL ADEQUACY REQUIREMENTS, EXPENSES, ETC.

                If any Law, guideline or interpretation or any change in any
Law, guideline or interpretation or application thereof by any Official Body
charged with the interpretation or administration thereof or compliance with any
request or directive (whether or not having the force of Law) of any central
bank or other Official Body:

                        (i)     subjects any Bank to any tax or changes the
basis of taxation with respect to this Agreement, the Notes, the Loans or
payments by the Borrower of principal, interest, Commitment Fees, or other
amounts due from the Borrower hereunder or under the Notes (except for taxes on
the net income of such Bank),

                        (ii)    imposes, modifies or deems applicable any
reserve, special deposit or similar requirement against credits or commitments
to extend credit extended by, or assets (funded or contingent) of, deposits with
or for the account of, or other acquisitions of funds by, any Bank, or

                        (iii)   imposes, modifies or deems applicable any
capital adequacy or similar requirement (A) against assets (funded or
contingent) of, or letters of credit, other credits or commitments to extend
credit extended by, any Bank, or (B) otherwise applicable to the obligations of
any Bank under this Agreement, and the result of any of the foregoing is to
increase the cost to, reduce the income receivable by, or impose any expense
(including loss of margin) upon any Bank with respect to this Agreement, the
Notes or the making, maintenance or funding of any part of the Loans (or, in the
case of any capital adequacy or similar requirement, to have the effect of
reducing the rate of return on any Bank's capital, taking into consideration
such Bank's customary policies with respect to capital adequacy) by an amount
which such Bank in its reasonable discretion deems to be material, such Bank
shall from time to time notify the Borrower and the Agent of the amount
determined in good faith (using any averaging and attribution methods employed
in good faith) by such Bank to be necessary to compensate such

                                      -43-
<PAGE>

Bank for such increase in cost, reduction of income, additional expense or
reduced rate of return. Such notice shall set forth in reasonable detail the
basis for such determination. Such amount shall be due and payable by the
Borrower to such Bank twenty (20) Business Days after such notice is given.

                Unless a Bank gives notice to the Borrower within 180 days after
the Bank has incurred the increase in cost, reduction of income, additional
expense or reduced rate of return described in items (i) through (iii), the
amount due and payable by the Borrower shall be limited to the increase in cost,
reduction of income, additional expense or reduced rate of return incurred by
the Bank during the period of 180 days preceding such notice through the date of
such notice and after the date of such notice.

                5.6.2   INDEMNITY.

                In addition to the compensation required by Section 5.6.1
[Increased Costs, Etc.], the Borrower shall indemnify each Bank against all
liabilities, losses or expenses (including loss of margin, any loss or expense
incurred in liquidating or employing deposits from third parties and any loss or
expense incurred in connection with funds acquired by a Bank to fund or maintain
Loans subject to a Euro-Rate Option) which such Bank sustains or incurs as a
consequence of any

                        (i)     payment, prepayment, conversion or renewal of
any Loan to which a Euro-Rate Option applies on a day other than the last day of
the corresponding Euro-Rate Interest Period (whether or not such payment or
prepayment is mandatory, voluntary or automatic and whether or not such payment
or prepayment is then due),

                        (ii)    attempt by the Borrower to revoke (expressly, by
later inconsistent notices or otherwise) in whole or part any Loan Requests
under Section 2.4 [Revolving Credit Loan Requests], Section 3.4 [Term Loan A
Requests] or Section 4.2 or notice relating to prepayments under Section 5.4
[Voluntary Prepayments], or

                        (iii)   default by the Borrower in the performance or
observance of any covenant or condition contained in this Agreement or any other
Loan Document, including any failure of the Borrower to pay when due (by
acceleration or otherwise) any principal, interest, Commitment Fee or any other
amount due hereunder.

        If any Bank sustains or incurs any such loss or expense, it shall from
time to time notify the Borrower of the amount determined in good faith by such
Bank (which determination may include such assumptions, allocations of costs and
expenses and averaging or attribution methods as such Bank shall deem
reasonable) to be necessary to indemnify such Bank for such loss or expense.
Such notice shall set forth in reasonable detail the basis for such
determination. Such amount shall be due and payable by the Borrower to such Bank
twenty (20) Business Days after such notice is given.

                                      -44-
<PAGE>

                        6. REPRESENTATIONS AND WARRANTIES

        6.1     REPRESENTATIONS AND WARRANTIES.

        The Loan Parties, jointly and severally, represent and warrant to the
Agent and each of the Banks as follows:

                6.1.1   ORGANIZATION AND QUALIFICATION.

                Each Loan Party and each Subsidiary of each Loan Party is a
corporation, partnership or limited liability company duly organized, validly
existing and in good standing under the laws of its jurisdiction of
organization. Each Loan Party and each Subsidiary of each Loan Party has the
lawful power to own or lease its properties and to engage in the business it
presently conducts or proposes to conduct. Each Loan Party and each Subsidiary
of each Loan Party is duly licensed or qualified and in good standing in each
jurisdiction listed on SCHEDULE 6.1.1 as of the date hereof and in all other
jurisdictions where the property owned or leased by it or the nature of the
business transacted by it or both makes such licensing or qualification
necessary, except where the failure to so qualify would not result in a Material
Adverse Change.

                6.1.2   CAPITALIZATION AND OWNERSHIP.

                As of the date of this Agreement, the authorized capital stock
of the Borrower consists of 125,000 shares of Series A preferred stock, 25,000
shares of Series B preferred stock and 1,500,000 shares of common stock, of
which 63,970.45 shares of Series A preferred stock and 762,032.75 shares of
common stock (referred to herein as the "SHARES") are issued and outstanding and
are owned as indicated on SCHEDULE 6.1.2. All of the Shares have been validly
issued and are fully paid and nonassessable. There are no options, warrants or
other rights outstanding to purchase any such shares except as indicated on
SCHEDULE 6.1.2.

                6.1.3   SUBSIDIARIES.

                SCHEDULE 6.1.3 states the name of each of the Borrower's
Subsidiaries, its jurisdiction of incorporation, its authorized capital stock,
the issued and outstanding shares (referred to herein as the "SUBSIDIARY
SHARES") and the owners thereof if it is a corporation, its outstanding
partnership interests (the "PARTNERSHIP INTERESTS") if it is a partnership and
its outstanding limited liability company interests, interests assigned to
managers thereof and the voting rights associated therewith (the "LLC
Interests") if it is a limited liability company. The Borrower and each
Subsidiary of the Borrower has good and valid title to all of the Subsidiary
Shares, Partnership Interests and LLC Interests it purports to own, free and
clear in each case of any Lien, other than Liens for taxes not yet due and
payable. All Subsidiary Shares, Partnership Interests and LLC Interests have
been validly issued, and all Subsidiary Shares are fully paid and nonassessable.
All capital contributions and other consideration required to be made or paid in
connection with the issuance of the Partnership Interests and LLC Interests have
been made or paid, as the case may be. There are no options, warrants or other
rights outstanding to purchase

                                      -45-
<PAGE>

any such Subsidiary Shares, Partnership Interests or LLC Interests except as
indicated on SCHEDULE 6.1.3.

                6.1.4   POWER AND AUTHORITY.

                Each Loan Party has full power to enter into, execute, deliver
and carry out this Agreement and the other Loan Documents to which it is a
party, to incur the Indebtedness contemplated by the Loan Documents and to
perform its Obligations under the Loan Documents to which it is a party, and all
such actions have been duly authorized by all necessary proceedings on its part.

                6.1.5   VALIDITY AND BINDING EFFECT.

                This Agreement has been duly and validly executed and delivered
by each Loan Party, and each other Loan Document which any Loan Party is
required to execute and deliver on or after the date hereof will have been duly
executed and delivered by such Loan Party on the required date of delivery of
such Loan Document. This Agreement and each other Loan Document constitutes, or
will constitute, legal, valid and binding obligations of each Loan Party which
is or will be a party thereto on and after its date of delivery thereof,
enforceable against such Loan Party in accordance with its terms, except to the
extent that enforceability of any of such Loan Document may be limited by
bankruptcy, insolvency, reorganization, moratorium or other similar laws
affecting the enforceability of creditors' rights generally or limiting the
right of specific performance.

                6.1.6   NO CONFLICT.

                Neither the execution and delivery of this Agreement or the
other Loan Documents by any Loan Party nor the consummation of the transactions
herein or therein contemplated or compliance with the terms and provisions
hereof or thereof by any of them will conflict with, constitute a default under
or result in any breach of (i) the terms and conditions of the certificate of
incorporation, bylaws, certificate of limited partnership, partnership
agreement, certificate of formation, limited liability company agreement or
other organizational documents of any Loan Party or (ii) any Law or any material
agreement or instrument or order, writ, judgment, injunction or decree to which
any Loan Party or any of its Subsidiaries is a party or by which it or any of
its Subsidiaries is bound or to which it is subject (except with respect to the
default or breach of material agreements as set forth on SCHEDULE 6.1.13 or
which would not result in a Material Adverse Change), or result in the creation
or enforcement of any Lien, charge or encumbrance whatsoever upon any property
(now or hereafter acquired) of any Loan Party or any of its Subsidiaries (other
than Liens granted under the Loan Documents).

                6.1.7   LITIGATION.

                There are no actions, suits, proceedings or investigations
pending or, to the knowledge of any Loan Party, threatened against such Loan
Party or any Subsidiary of such

                                      -46-
<PAGE>

Loan Party at law or equity before any Official Body which individually or in
the aggregate may result in any Material Adverse Change. None of the Loan
Parties or any Subsidiaries of any Loan Party is in violation of any order,
writ, injunction or any decree of any Official Body which may result in any
Material Adverse Change.

                6.1.8   TITLE TO PROPERTIES.

                The real property owned or leased by each Loan Party and each
Subsidiary of each Loan Party is described on SCHEDULE 6.1.8. Each Loan Party
and each Subsidiary of each Loan Party has good title to or valid leasehold
interest in all material properties, assets and other rights which it purports
to own or lease or which are reflected as owned or leased on its books and
records, free and clear of all Liens and encumbrances except Permitted Liens,
and subject to the terms and conditions of the applicable leases. All material
leases of property are in full force and effect without the necessity for any
consent which has not previously been obtained upon consummation of the
transactions contemplated hereby.

                6.1.9   FINANCIAL STATEMENTS.

                        (i)     HISTORICAL STATEMENTS. The Borrower has
delivered to the Agent copies of audited year-end financial statements for the
Borrower as of the end of the most recent fiscal year (the "ANNUAL STATEMENTS").
In addition, the Borrower has delivered to the Agent copies of unaudited
consolidated interim financial statements for the Borrower and each of the
Founding Companies for the fiscal year to date as of March 31, 2000 (the
"INTERIM STATEMENTS") (the Annual and Interim Statements being collectively
referred to as the "HISTORICAL STATEMENTS"). The Borrower represents that the
Historical Statements were compiled from the books and records maintained by the
respective Founding Companies' management, are correct, complete and fairly
represent in all material respects the consolidated financial condition of the
respective Founding Companies and their Subsidiaries as of their dates and the
results of operations for the fiscal periods then ended and have been prepared
in accordance with GAAP consistently applied, subject (in the case of the
Interim Statements) to normal year-end audit adjustments and the absence of
footnotes.

                        (ii)    FINANCIAL PROJECTIONS. The Borrower has
delivered to the Agent the consolidated and consolidating financial projections
of the Borrower and its Subsidiaries (including each of the Founding Companies)
for the period 2000-2005 derived from various assumptions of the Borrower's
management and pro forma consolidated Historical Statements based on the
Historical Statements of the Founding Companies (the "FINANCIAL PROJECTIONS").
The Borrower represents that the assumptions on which the Financial Projections
are based were believed to be reasonable assumptions at the time of the
preparation of the Financial Projections.

                        (iii)   ACCURACY OF FINANCIAL STATEMENTS. None of the
Founding Companies, after giving effect to the acquisition of each of the
Founding Companies, has any material liabilities, contingent or otherwise, or
forward or long-term commitments that

                                      -47-
<PAGE>

are not disclosed in the Historical Statements or in the notes thereto or which
have not been disclosed in writing to the Agent, and except as disclosed therein
there are no unrealized or anticipated losses from any commitments of the
Borrower or any Subsidiary of the Borrower which may cause a Material Adverse
Change. Since December 31, 1999, no Material Adverse Change has occurred.

                        6.1.10  USE OF PROCEEDS; MARGIN STOCK; SECTION 20
                                SUBSIDIARIES.

                                6.1.10.1 GENERAL.

                                The Loan Parties intend to use the proceeds of
the Loans in accordance with Sections 2.7, 3.7 and 8.1.10.

                                6.1.10.2 MARGIN STOCK.

                                None of the Loan Parties or any Subsidiaries of
any Loan Party engages or intends to engage principally, or as one of its
important activities, in the business of extending credit for the purpose of
purchasing or carrying margin stock (within the meaning of Regulation U). No
part of the proceeds of any Loan has been or will be used to purchase or carry
any margin stock or to extend credit to others for the purpose of purchasing or
carrying any margin stock or to refund Indebtedness originally incurred for such
purpose, or for any purpose which entails a violation of or which is
inconsistent with the provisions of the regulations of the Board of Governors of
the Federal Reserve System. None of the Loan Parties or any Subsidiary of any
Loan Party holds or intends to hold margin stock in such amounts that more than
25% of the reasonable value of the assets of any Loan Party or Subsidiary of any
Loan Party are or will be represented by margin stock.

                                6.1.10.3 SECTION 20 SUBSIDIARIES.

                                The Loan Parties do not intend to use and shall
not use any portion of the proceeds of the Loans, directly or indirectly, to
purchase during the underwriting period, or for thirty (30) days thereafter,
Ineligible Securities being underwritten by a Section 20 Subsidiary.

                        6.1.11  FULL DISCLOSURE.

                        Neither this Agreement nor any other Loan Document, nor
any certificate, statement, agreement or other documents furnished to the Agent
or any Bank in connection herewith or therewith, contains any untrue statement
of a material fact or omits to state a material fact necessary in order to make
the statements contained herein and therein, in light of the circumstances under
which they were made, not misleading. There is no fact known to any Loan Party
which materially adversely affects the business, property, assets, financial
condition, results of operations of any Loan Party or Subsidiary of any Loan
Party which has not been set forth in this Agreement or in the certificates,
statements, agreements or other documents

                                      -48-
<PAGE>

furnished in writing to the Agent and the Banks prior to or at the date hereof
in connection with the transactions contemplated hereby.

                        6.1.12  TAXES.

                        All federal tax returns and material state, local and
other tax returns required to have been filed with respect to each Loan Party
and each Subsidiary of each Loan Party have been filed, and payment or adequate
provision has been made for the payment of all Federal and material state, local
and other taxes, fees, assessments and other material governmental charges which
have or may become due pursuant to said returns or to assessments received,
except to the extent that such taxes, fees, assessments and other charges are
being contested in good faith by appropriate proceedings diligently conducted
and for which such reserves or other appropriate provisions, if any, as shall be
required by GAAP shall have been made. There are no agreements or waivers
extending the statutory period of limitations applicable to any federal income
tax return of any Loan Party or Subsidiary of any Loan Party for any period.

                        6.1.13  CONSENTS AND APPROVALS.

                        Except for the filing of financing statements and the
Mortgages in the state and county filing offices, no consent, approval,
exemption, order or authorization of, or a registration or filing with, any
Official Body or any other Person is required by any Law or any agreement in
connection with the execution, delivery and carrying out of this Agreement and
the other Loan Documents by any Loan Party, except as listed on SCHEDULE 6.1.13
and except with respect to consents, the failure of which to obtain would not
result in a Material Adverse Change, all of which shall have been obtained or
made on or prior to the Closing Date except as otherwise indicated on SCHEDULE
6.1.13.

                        6.1.14  NO EVENT OF DEFAULT; COMPLIANCE WITH
                                INSTRUMENTS.

                        No event has occurred and is continuing and no condition
exists or will exist after giving effect to the borrowings or other extensions
of credit to be made on the Closing Date under or pursuant to the Loan Documents
which constitutes an Event of Default or Potential Default. None of the Loan
Parties or any Subsidiaries of any Loan Party is in violation of (i) any term of
its certificate of incorporation, bylaws, certificate of limited partnership,
partnership agreement, certificate of formation, limited liability company
agreement or other organizational documents or (ii) any material agreement or
instrument to which it is a party or by which it or any of its properties may be
subject or bound where such violation would constitute a Material Adverse
Change.

                        6.1.15  PATENTS, TRADEMARKS, COPYRIGHTS, LICENSES, ETC.

                        Each Loan Party and each Subsidiary of each Loan Party
owns or possesses all the material patents, trademarks, service marks, trade
names, copyrights, licenses,

                                      -49-
<PAGE>

registrations, franchises, permits and rights necessary to own and operate its
properties and to carry on its business as presently conducted and planned to be
conducted by such Loan Party or Subsidiary, without known possible, alleged or
actual conflict with the rights of others. All registered patents, trademarks,
service marks, trade names, copyrights and applications for any of the foregoing
of each Loan Party and each Subsidiary of each Loan Party are listed and
described on SCHEDULE 6.1.15.

                        6.1.16  SECURITY INTERESTS.

                        The Liens and security interests granted to the Agent
for the benefit of the Banks pursuant to the Collateral Assignment, the Patent,
Trademark and Copyright Security Agreement, the Pledge Agreement and the
Security Agreement in the Collateral (other than the Real Property) constitute
and will continue to constitute Prior Security Interests under the Uniform
Commercial Code as in effect in each applicable jurisdiction (the "UNIFORM
COMMERCIAL CODE") or other applicable Law entitled to all the rights, benefits
and priorities provided by the Uniform Commercial Code or such Law. The Loan
Parties party to each of the Loan Documents which grant Liens and security
interests to the Agent for the benefit of the Banks hereby acknowledge and agree
that all such Liens and security interests granted prior to the date hereof
continue to secure the Obligations, as such term is defined in this Agreement.
Upon the filing of financing statements relating to said security interests in
each office and in each jurisdiction where required in order to perfect the
security interests described above, taking possession of any stock certificates
or other certificates evidencing the Pledged Collateral and recordation of the
Patent, Trademark and Copyright Security Agreement in the United States Patent
and Trademark Office and United States Copyright Office, as applicable, all such
action as is necessary or advisable to establish such rights of the Agent will
have been taken, and there will be upon execution and delivery of the Collateral
Assignment, the Patent, Trademark and Copyright Security Agreement, the Pledge
Agreement and the Security Agreement, such filings and such taking of
possession, no necessity for any further action in order to preserve, protect
and continue such rights, except the filing of continuation statements with
respect to such financing statements in the manner required under applicable
state Law. All filing fees and other expenses in connection with each such
action have been or will be paid by the Borrower.

                        6.1.17  MORTGAGE LIENS.

                        The Liens granted to the Agent for the benefit of the
Banks pursuant to the Mortgages constitute valid first priority Liens under
applicable law, subject to Permitted Liens acceptable to the Agent. All such
action as will be necessary or advisable to establish such Liens of the Agent
and their priority as described in the preceding sentence will be taken at or
prior to the time required for such purpose, and there will be as of the date of
execution and delivery of the Mortgages no necessity for any further action in
order to protect, preserve and continue such Lien and such priority (other than
the recording of the Mortgages).

                                      -50-
<PAGE>

                        6.1.18  STATUS OF THE PLEDGED COLLATERAL.

                        All the shares of capital stock, Partnership Interests
or LLC Interests included in the Pledged Collateral to be pledged pursuant to
the Pledge Agreement or the Collateral Assignment are or will be upon issuance
validly issued and nonassessable and owned beneficially and of record by the
pledgor free and clear of any Lien (other than Liens for taxes not yet due and
payable) or restriction on transfer, except as otherwise provided by the Pledge
Agreement or the Collateral Assignment and except as the right of the Banks to
dispose of the Shares, Partnership Interests or LLC Interests may be limited by
the Securities Act of 1933, as amended, and the regulations promulgated by the
Securities and Exchange Commission thereunder and by applicable state securities
laws. There are no shareholder, partnership, limited liability company or other
agreements or understandings with respect to the shares of capital stock,
Partnership Interests or LLC Interests included in the Pledged Collateral except
as described on SCHEDULE 6.1.18. The Loan Parties have delivered true and
correct copies of such partnership agreements and limited liability company
agreements to the Agent.

                        6.1.19  INSURANCE.

                        On the Closing Date and as of each date on which updates
are required to be delivered pursuant to Section 6.2, SCHEDULE 6.1.19 lists all
insurance policies and other bonds to which any Loan Party or Subsidiary of any
Loan Party is a party, all of which are valid and in full force and effect. Such
policies and bonds provide adequate coverage from reputable and financially
sound insurers in amounts sufficient to insure the assets and risks of each Loan
Party and each Subsidiary of each Loan Party in accordance with customary
business practice in the industry of the Loan Parties and their Subsidiaries.

                        6.1.20  COMPLIANCE WITH LAWS.

                        The Loan Parties and their Subsidiaries are in
compliance in all material respects with all applicable Laws (other than
Environmental Laws which are specifically addressed in Section 6.1.25
[Environmental Matters]) in all jurisdictions in which any Loan Party or
Subsidiary of any Loan Party is presently or will be doing business except where
the failure to do so would not constitute a Material Adverse Change.

                        6.1.21  MATERIAL CONTRACTS; BURDENSOME RESTRICTIONS.

                        On the Closing Date and as of each date on which updates
are required to be delivered pursuant to Section 6.2, SCHEDULE 6.1.21 lists all
material contracts relating to the business operations of each Loan Party and
each Subsidiary of any Loan Party, including all employee benefit plans and
Labor Contracts. All such material contracts are valid, binding and enforceable
upon such Loan Party or Subsidiary and each of the other parties thereto in
accordance with their respective terms (except to the extent that they terminate
in the ordinary course of business in accordance with their terms), and, as of
the Closing Date and as of each date when the updates are required to be
delivered, there is no material default thereunder, to the

                                      -51-
<PAGE>

Loan Parties' knowledge, with respect to parties other than such Loan Party or
Subsidiary. None of the Loan Parties or their Subsidiaries is bound by any
contractual obligation, or subject to any restriction in any organization
document, or any requirement of Law which could result in a Material Adverse
Change.

                        6.1.22  INVESTMENT COMPANIES; REGULATED ENTITIES.

                        None of the Loan Parties or any Subsidiaries of any Loan
Party is an "investment company" registered or required to be registered under
the Investment Company Act of 1940 or under the "control" of an "investment
company" as such terms are defined in the Investment Company Act of 1940 and
shall not become such an "investment company" or under such "control." None of
the Loan Parties or any Subsidiaries of any Loan Party is subject to any other
Federal state statute or regulation limiting its ability to incur Indebtedness
for borrowed money.

                        6.1.23  PLANS AND BENEFIT ARRANGEMENTS.

                        Except as set forth on SCHEDULE 6.1.23 and with respect
to any Plan that is not maintained, sponsored or contributed to by the Borrower
or any Subsidiary of the Borrower but which could reasonably be expected to
result in any material liability to the Borrower or any Subsidiary of the
Borrower:

                                (i)     The Borrower and each other member of
the ERISA Group are in compliance in all material respects with any applicable
provisions of ERISA with respect to all Benefit Arrangements, Plans and
Multiemployer Plans. There has been no Prohibited Transaction with respect to
any Benefit Arrangement or any Plan or, to the best knowledge of the Borrower,
with respect to any Multiemployer Plan or Multiple Employer Plan. The Borrower
and all other members of the ERISA Group have made when due any and all payments
required to be made under any agreement relating to a Multiemployer Plan or a
Multiple Employer Plan or any Law pertaining thereto. With respect to each Plan
and Multiemployer Plan, the Borrower and each other member of the ERISA Group
(i) have fulfilled in all material respects their obligations under the minimum
funding standards of ERISA, (ii) have not incurred any liability to the PBGC,
and (iii) have not had asserted against them any penalty for failure to fulfill
the minimum funding requirements of ERISA.

                                (ii)    To the best of the Borrower's knowledge,
each Multiemployer Plan and Multiple Employer Plan is able to pay benefits
thereunder when due.

                                (iii)   Neither the Borrower nor any other
member of the ERISA Group has instituted or intends to institute proceedings to
terminate any Plan.

                                (iv)    No event requiring notice to the PBGC
under Section 302(f)(4)(A) of ERISA has occurred or is reasonably expected to
occur with respect to

                                      -52-
<PAGE>

any Plan, and no amendment with respect to which security is required under
Section 307 of ERISA has been made or is reasonably expected to be made to any
Plan.

                                (v)     The aggregate actuarial present value of
all benefit liabilities (whether or not vested) under each Plan, determined on a
plan termination basis, as disclosed in, and as of the date of, the most recent
actuarial report for such Plan, does not exceed the aggregate fair market value
of the assets of such Plan.

                                (vi)    Neither the Borrower nor any other
member of the ERISA Group has incurred or reasonably expects to incur any
material withdrawal liability under ERISA to any Multiemployer Plan or Multiple
Employer Plan. Neither the Borrower nor any other member of the ERISA Group has
been notified by any Multiemployer Plan or Multiple Employer Plan that such
Multiemployer Plan or Multiple Employer Plan has been terminated within the
meaning of Title IV of ERISA and, to the best knowledge of the Borrower, no
Multiemployer Plan or Multiple Employer Plan is reasonably expected to be
reorganized or terminated, within the meaning of Title IV of ERISA.

                                (vii)   To the extent that any Benefit
Arrangement is insured, the Borrower and all other members of the ERISA Group
have paid when due all premiums required to be paid for all periods through the
Closing Date. To the extent that any Benefit Arrangement is funded other than
with insurance, the Borrower and all other members of the ERISA Group have made
when due all contributions required to be paid for all periods through the
Closing Date.

                                (viii)  All Plans, Benefit Arrangements and
Multiemployer Plans have been administered in accordance with their terms and
applicable Law.

                        6.1.24  EMPLOYMENT MATTERS.

                        Each of the Loan Parties and each of their Subsidiaries
is in compliance with the Labor Contracts and all applicable federal, state and
local labor and employment Laws including those related to equal employment
opportunity and affirmative action, labor relations, minimum wage, overtime,
child labor, medical insurance continuation, worker adjustment and relocation
notices, immigration controls and worker and unemployment compensation, where
the failure to comply would constitute a Material Adverse Change. There are no
outstanding grievances, arbitration awards or appeals therefrom arising out of
the Labor Contracts or current or threatened strikes, picketing, handbilling or
other work stoppages or slowdowns at facilities of any of the Loan Parties or
any of their Subsidiaries which in any case would constitute a Material Adverse
Change. The Borrower has delivered to the Agent true and correct copies of each
of the Labor Contracts, including the employment agreements for senior
management of the Borrower but excluding other employment contracts.

                                      -53-
<PAGE>

                        6.1.25  ENVIRONMENTAL MATTERS.

                        Except as disclosed on SCHEDULE 6.1.25:

                                (i)     None of the Loan Parties or any
Subsidiary has received any Environmental Complaint and has no reason to believe
that it might receive an Environmental Complaint except for any such
Environmental Complaint(s) individually or in the aggregate which, adversely
resolved, would not result in a Material Adverse Change.

                                (ii)    No activity of the Loan Parties or any
Subsidiary at the Property is being or has been conducted in violation of any
Environmental Law, and to the knowledge of Loan Parties, no activity of any
prior owner or operator of the Property was conducted in violation of any
Environmental Laws except for any such violation which would not result in a
Material Adverse Change.

                                (iii)   There are no Regulated Substances
present on, in, under, or emanating from, or to Loan Parties' knowledge
emanating to, the Property or any portion thereof which result in Contamination.

                                (iv)    Each Loan Party and each of the Loan
Parties' Subsidiaries has all Required Environmental Permits, except to the
extent the failure to possess would not result in a Material Adverse Change, and
all such Required Environmental Permits are in full force and effect.

                                (v)     Each Loan Party and each of the Loan
Parties' Subsidiaries has submitted all Required Environmental Reports which
pursuant to Environmental Laws it is required to submit to an Official Body, and
Borrower maintains all Required Environmental Reports which pursuant to
Environmental Laws it is required to maintain except for such of the foregoing
the failure to submit or maintain which would not result in a Material Adverse
Change.

                                (vi)    To the knowledge of Loan Parties, no
facility or site to which Borrower, either directly or indirectly by a third
party, has sent Regulated Substances for storage, treatment, disposal or other
management has been or is being operated in violation of Environmental Laws or
pursuant to Environmental Laws is identified or proposed to be identified on any
list of contaminated properties or other properties which pursuant to
Environmental Laws are the subject of an investigation or remediation action by
an Official Body.

                                (vii)   No portion of the Property is identified
or to the Loan Parties' knowledge proposed to be identified on any list of
contaminated properties or other properties which pursuant to Environmental Laws
are the subject of an investigation or remediation action by an Official Body.

                                      -54-
<PAGE>

                                (viii)  No portion of the Property constitutes
an Environmentally Sensitive Area.

                                (ix)    No lien or other encumbrance authorized
by Environmental Laws exists against the Property, and the Loan Parties have no
reason to believe that such a lien or encumbrance may be imposed.

                        6.1.26  YEAR 2000.

                        The Loan Parties and their Subsidiaries have reviewed
the areas within their business and operations which could be adversely affected
by, and have developed or are developing a program to address on a timely basis,
the risk that certain computer applications used by the Loan Parties and their
Subsidiaries (or, to the knowledge of the Loan Parties, any of their respective
material suppliers, customers or vendors) may be unable to recognize and perform
properly date-sensitive functions involving dates prior to and after December
31, 1999 (the "YEAR 2000 PROBLEM"). The Year 2000 Problem will not result in any
Material Adverse Change.

                        6.1.27  SENIOR DEBT STATUS.

                        The Obligations of each Loan Party under this Agreement,
the Notes, the Guaranty Agreement each of the other Loan Documents and, if
provided by a Bank, the Interest Rate Protection Agreement, to which it is a
party do rank and will rank at least PARI PASSU in priority of payment with all
other Indebtedness of such Loan Party except Indebtedness of such Loan Party to
the extent secured by Permitted Liens. There is no Lien upon or with respect to
any of the properties or income of any Loan Party or Subsidiary of any Loan
Party which secures indebtedness or other obligations of any Person except for
Permitted Liens.

        6.2     UPDATES TO SCHEDULES.

        Except for SCHEDULE 6.1.2, upon the closing of each Permitted
Acquisition and each date for the delivery of the quarterly and annual financial
statements of the Borrower pursuant to EXHIBIT 8.3, the Borrower shall provide
the Agent in writing with such revisions or updates to the Schedules as may be
necessary or appropriate to update or correct same. Except for informational
changes made to the schedules with such revisions or updates which do not affect
the substance of the representations made by the Loan Parties, no breach of
warranty or representation resulting from the inaccuracy or incompleteness of
any such Schedule shall be deemed to have been cured by such revisions or
updates. The Borrower shall update SCHEDULE 6.1.2 in connection with any
Permitted Acquisition where the consideration includes capital stock issued by
the Borrower.

                                      -55-
<PAGE>

        7.      CONDITIONS OF LENDING AND ISSUANCE OF LETTERS OF CREDIT

        The obligation of each Bank to make Loans and of the Agent to issue
Letters of Credit hereunder is subject to (i) the performance by each of the
Loan Parties of its Obligations to be performed hereunder at or prior to the
making of any such Loans or issuance of such Letters of Credit and (ii) to the
satisfaction of the following further conditions being met in connection with
the Banks' financing of each Permitted Acquisition:

                7.1     LOANS AND LETTERS OF CREDIT ON THE CLOSING DATE AND IN
                        CONNECTION WITH PERMITTED ACQUISITIONS.

                On the Closing Date and, unless otherwise set forth herein, on
the date of each Permitted Acquisition:

                        7.1.1   OFFICER'S CERTIFICATE.

                        The representations and warranties of each of the Loan
Parties contained in Section 6 and in each of the other Loan Documents shall be
true and accurate on and as of the Closing Date and the date of each Permitted
Acquisition with the same effect as though such representations and warranties
had been made on and as of such date (except representations and warranties
which relate solely to an earlier date or time, which representations and
warranties shall be true and correct on and as of the specific dates or times
referred to therein), and each of the Loan Parties shall have performed and
complied with all covenants and conditions hereof and thereof; no Event of
Default or Potential Default shall have occurred and be continuing or shall
exist; and there shall be delivered to the Agent for the benefit of each Bank a
certificate of each of the Loan Parties, dated the Closing Date or the date of
each Permitted Acquisition, as applicable, and signed by the Chief Executive
Officer, President or Chief Financial Officer of each of the Loan Parties, to
each such effect.

                        7.1.2   SECRETARY'S CERTIFICATE.

                        There shall be delivered to the Agent for the benefit of
each Bank a certificate dated the Closing Date or the date of each Permitted
Acquisition, as applicable, and signed by the Secretary or an Assistant
Secretary of each of the Loan Parties executing and delivering Loan Documents on
such dates, certifying as appropriate as to:

                                (i)     all required action taken by each Loan
Party in connection with this Agreement and the other Loan Documents;

                                (ii)    the names of the officer or officers
authorized to sign this Agreement and the other Loan Documents and the true
signatures of such officer or officers and specifying the officers authorized to
act on behalf of each Loan Party for purposes of this Agreement and the true
signatures of such officers, on which the Agent and each Bank may conclusively
rely; and

                                      -56-
<PAGE>

                                (iii)   copies of its organizational documents,
including its certificate of incorporation, bylaws, certificate of limited
partnership, partnership agreement, certificate of formation, and limited
liability company agreement as in effect on the Closing Date certified by the
appropriate state official where such documents are filed in a state office
together with certificates from the appropriate state officials as to the
continued existence and good standing of each Loan Party in each state where
organized or qualified to do business.

                        7.1.3   DELIVERY OF LOAN DOCUMENTS.

                        The Collateral Assignment, Guaranty Agreement, Guarantor
Joinder (if applicable), Indemnity (if applicable), Mortgage (if applicable),
Notes, Patent, Trademark and Copyright Security Agreement, Pledge Agreement,
Intercompany Subordination Agreement, Management Fee Subordination Agreement and
Security Agreement shall have been duly executed and delivered to the Agent for
the benefit of the Banks, together with all appropriate financing statements and
appropriate stock powers and certificates evidencing the Shares, the Partnership
Interests and the LLC Interests.

                        7.1.4   OPINION OF COUNSEL.

                        There shall be delivered to the Agent for the benefit of
each Bank a written opinion of Kirkland & Ellis, counsel for the Loan Parties or
such other counsel as may be acceptable to the Agent, dated the Closing Date or
the date of each Permitted Acquisition, as applicable, and in form and substance
satisfactory to the Agent and its counsel:

                                (i)     as to the matters set forth in EXHIBIT
7.1.4; and

                                (ii)    as to such other matters incident to the
transactions contemplated herein as the Agent may reasonably request.

                        7.1.5   LEGAL DETAILS.

                        All legal details and proceedings in connection with the
transactions contemplated by this Agreement and the other Loan Documents shall
be in form and substance satisfactory to the Agent and counsel for the Agent,
and the Agent shall have received all such other counterpart originals or
certified or other copies of such documents and proceedings in connection with
such transactions, in form and substance satisfactory to the Agent and said
counsel, as the Agent or said counsel may reasonably request.

                        7.1.6   PAYMENT OF FEES.

                        The Borrower shall have paid or caused to be paid to the
Agent for itself and for the account of the Banks to the extent not previously
paid all other commitment and other fees accrued through the Closing Date or the
date of the Permitted Acquisition, as applicable, and the costs and expenses for
which the Agent and the Banks are entitled to be reimbursed.

                                      -57-
<PAGE>

                        7.1.7   SOLVENCY.

                        The Borrower shall have delivered to the Agent, on or
prior to the Closing Date and the date of each Permitted Acquisition, as
applicable, a certificate from the Chief Financial Officer or the Chief
Executive Officer of Borrower, in form and substance satisfactory to the Agent
in its reasonable discretion with respect to the solvency (on a consolidated
basis) of the Borrower and each Loan Party immediately after the consummation of
the transactions to occur on the Closing Date or the date of such Permitted
Acquisition, as applicable.

                        7.1.8   CONSENTS.

                        All material consents required to effectuate the
transactions contemplated hereby on the Closing Date and on the date of each
Permitted Acquisition, as applicable, as set forth on SCHEDULE 6.1.13, shall
have been obtained.

                        7.1.9   OFFICER'S CERTIFICATE REGARDING MACS.

                        Since December 31, 1999, no Material Adverse Change
shall have occurred; there shall have been delivered to the Agent for the
benefit of each Bank a certificate dated the Closing Date or the date of each
Permitted Acquisition, as applicable, signed by the Chief Executive Officer,
President or Chief Financial Officer of each Loan Party to each such effect.

                        7.1.10  NO VIOLATION OF LAWS.

                        The making of the Loans and the issuance of the Letters
of Credit shall not contravene any Law applicable to any Loan Party or any of
the Banks.

                        7.1.11  NO ACTIONS OR PROCEEDINGS.

                        No action, proceeding, investigation, regulation or
legislation shall have been instituted, or to the knowledge of any Loan Party,
threatened or proposed before any court, governmental agency or legislative body
to enjoin, restrain or prohibit, or to obtain damages in respect of, this
Agreement, the other Loan Documents or the consummation of the transactions
contemplated hereby or thereby or which, in the Agent's sole discretion, would
make it inadvisable to consummate the transactions contemplated by this
Agreement or any of the other Loan Documents.

                        7.1.12  INSURANCE POLICIES; CERTIFICATES OF INSURANCE;
                                ENDORSEMENTS.

                        The Loan Parties shall have delivered evidence
acceptable to the Agent in its reasonable discretion that adequate insurance in
compliance with Section 8.1.3 [Maintenance of Insurance] is in full force and
effect and that all premiums then due thereon have been paid,

                                      -58-
<PAGE>

together with a certified copy of each Loan Party's casualty insurance policy or
policies evidencing coverage satisfactory to the Agent, with additional insured,
mortgagee and lender loss payable special endorsements attached thereto in form
and substance satisfactory to the Agent and its counsel naming the Agent as
additional insured, mortgagee and lender loss payee.

                        7.1.13  TITLE INSURANCE.

                        The Loan Parties shall deliver a title insurance policy
or policies or binder or binders in favor of the Agent for the benefit of the
Banks, in customary ALTA current mortgagee's form, in amounts not less than the
fair market value of any Real Property Collateral, with premiums paid thereon,
issued by a title insurance company acceptable to the Agent and insuring any
Mortgage as a valid first priority Lien upon the applicable Loan Parties' fee
simple title to, or leasehold interest in, the Real Property Collateral and all
improvements and all appurtenances thereto (including such easements and
appurtenances as may be required by the Agent), free and clear of any and all
defects and encumbrances whatsoever, subject only to such exceptions as may be
approved in writing by the Agent, with endorsements thereto as to such matters
as the Agent may designate.

                        7.1.14  EVIDENCE OF LIEN PRIORITY.

                        The Agent shall have received evidence in a form
acceptable to the Agent that subject to the exceptions noted in Section 6.16,
the Lien of the Banks on the Collateral constitutes a Prior Security Interest in
favor of the Banks and, in the case of a Mortgage, a valid and perfected first
priority Lien.

                        7.1.15  LANDLORD'S WAIVER.

                        The Loan Parties shall have delivered an executed
Landlord's Waiver in substantially the form of EXHIBIT 7.1.15 from the lessor
for each leased Collateral location, as listed on Schedule A to the Security
Agreement or shall evidence to the Agent that such Landlord's Waiver has been
sought from each applicable lessor and that the Loan Parties are using all
reasonable commercial efforts to obtain such Landlord's Waiver.

                        7.1.16  CONSUMMATION OF TRANSACTIONS.

                        On the date of closing of any Permitted Acquisition, the
transactions contemplated by the purchase agreement with respect to such
Permitted Acquisition shall have been consummated in all respects in accordance
with the terms thereof (without the waiver or amendment of any condition unless
consented to by the Agent). Each of the parties thereto shall have complied in
all respects with all covenants set forth in such purchase agreement (without
the waiver or amendment of any of the terms thereof unless consented to by the
Agent).

                                      -59-
<PAGE>

                7.1.17  LIEN SEARCH.

                The Agent and the Banks shall have received the results of a
recent lien, tax and judgment search in each of the jurisdictions and offices
where assets of the Borrower and its Subsidiaries or each entity party to a
Permitted Acquisition, as applicable, with a value of $25,000 or more (excluding
registered motor vehicles) are located or recorded, and such search shall reveal
no liens on any of their assets except for liens permitted by the Loan Documents
or liens to be discharged in connection with the transactions contemplated
hereby.

                7.1.18  DUE DILIGENCE AND CONTINGENT LIABILITIES.

                The Agent and the Banks shall have completed all requested due
diligence with respect to the Borrower, its Subsidiaries and any entities party
to a Permitted Acquisition, as applicable, including without limitation, the
acquisition due diligence reports and the audits/reviews prepared by Ernst &
Young, LLP or other nationally recognized accounting firm, management background
checks, customer reference checks, site visits and environmental compliance
reports, and shall be reasonably satisfied as to the amount and nature of all
environmental, tax, ERISA, employment, retirement, benefit and other contingent
liabilities to which the Borrower, its Subsidiaries and any entities party to a
Permitted Acquisition may be subject.

                7.1.19  YEAR 2000.

                The Agent and the Banks shall be reasonably satisfied with all
arrangements and preparations by the Borrower and any entities party to a
Permitted Acquisition, as applicable, with respect to the Year 2000 Problem.

        7.2     EACH ADDITIONAL LOAN OR LETTER OF CREDIT.

        At the time of making any Loans or issuing any Letters of Credit (other
than Loans made or Letters of Credit issued on the Closing Date) and in
connection with the transactions contemplated by any Permitted Acquisition, and
after giving effect to the proposed extensions of credit: the representations
and warranties of the Loan Parties contained in Section 6 and in the other Loan
Documents shall be true on and as of the date of such additional Loan or Letter
of Credit with the same effect as though such representations and warranties had
been made on and as of such date (except representations and warranties which
expressly relate solely to an earlier date or time, which representations and
warranties shall be true and correct on and as of the specific dates or times
referred to therein) and the Loan Parties shall have performed and complied with
all covenants and conditions hereof; no Event of Default or Potential Default
shall have occurred and be continuing or shall exist; the making of the Loans or
issuance of such Letter of Credit shall not contravene any Law applicable to any
Loan Party or Subsidiary of any Loan Party or any of the Banks; and the Borrower
shall have delivered to the Agent a duly executed and completed Loan Request,
Term Loan A Request or application for a Letter of Credit, as the case may be.

                                      -60-
<PAGE>

                                  8. COVENANTS

        8.1     AFFIRMATIVE COVENANTS.

        The Loan Parties, jointly and severally, covenant and agree that until
payment in full of the Loans, Reimbursement Obligations and Letter of Credit
Borrowings, and interest thereon, expiration or termination of all Letters of
Credit, satisfaction of all of the Loan Parties' other Obligations (other than
contingent Obligations for indemnification) under the Loan Documents and
termination of the Commitments, the Loan Parties shall comply at all times with
the following affirmative covenants:

                8.1.1   PRESERVATION OF EXISTENCE, ETC.

                Each Loan Party shall, and shall cause each of its Subsidiaries
to, maintain its legal existence as a corporation, limited partnership or
limited liability company and its license or qualification and good standing in
each jurisdiction in which its ownership or lease of property or the nature of
its business makes such license or qualification necessary, except as otherwise
expressly permitted in Section 8.2.6 [Liquidations, Mergers, Etc.] or except
where the failure to be so qualified would not result in a Material Adverse
Change.

                8.1.2   PAYMENT OF LIABILITIES, INCLUDING TAXES, ETC.

                Each Loan Party shall, and shall cause each of its Subsidiaries
to, duly pay and discharge all liabilities to which it is subject or which are
asserted against it, promptly as and when the same shall become due and payable,
including all taxes, assessments, governmental charges and claims of
subcontractors upon it or any of its properties, assets, income or profits,
prior to the date on which penalties attach thereto, except to the extent that
such liabilities, including taxes, assessments, governmental charges or claims
of subcontractors, are being contested in good faith and by appropriate and
lawful proceedings diligently conducted and for which such reserve or other
appropriate provisions, if any, as shall be required by GAAP shall have been
made, but only to the extent that failure to discharge any such liabilities
would not result in any additional liability which would result in a Material
Adverse Change or adversely affect to a material extent the Collateral, PROVIDED
that the Loan Parties and their Subsidiaries will pay all such liabilities
forthwith upon the commencement of proceedings to foreclose any Lien which may
have attached as security therefor.

                8.1.3   MAINTENANCE OF INSURANCE.

                Each Loan Party will maintain or cause to be maintained, with
financially sound and reputable insurers, public liability and property damage
insurance with respect to its business and properties and the business and
properties of its Subsidiaries against loss or damage of the kinds customarily
carried or maintained by Persons engaged in similar businesses in similar
locations and will deliver evidence thereof to Agent. The Loan Parties shall
cause, pursuant to endorsements and assignments in form and substance reasonably
satisfactory to

                                      -61-
<PAGE>

Agent, the Agent, for the benefit of Agent and Banks, to be named as lender's
loss payee in the case of casualty insurance, Agent, for the benefit of Agent
and Banks, to be named as additional insured in the case of all liability
insurance and Agent, for the benefit of Agent and Banks, to be named as assignee
in the case of all business interruption insurance; PROVIDED, that
notwithstanding the foregoing, in the absence of a Potential Default or an Event
of Default, the Loan Parties may receive and retain proceeds from such casualty
policies to the extent that such proceeds are less than $500,000 or as permitted
or as otherwise permitted in accordance with Section 5.5.2(b).

                8.1.4   MAINTENANCE OF PROPERTIES AND LEASES.

                Each Loan Party shall, and shall cause each of its Subsidiaries
to, maintain in good repair, working order and condition (ordinary wear and tear
and casualty damage excepted) in accordance with the general practice of other
businesses of similar character and size, all of those properties necessary to
its business, and from time to time, such Loan Party will make or cause to be
made all appropriate repairs, renewals or replacements thereof.

                8.1.5   MAINTENANCE OF PATENTS, TRADEMARKS, ETC.

                Each Loan Party shall, and shall cause each of its Subsidiaries
to, maintain in full force and effect all patents, trademarks, service marks,
trade names, copyrights, licenses, franchises, permits and other authorizations
necessary for the ownership and operation of its properties and business if the
failure so to maintain the same would constitute a Material Adverse Change.

                8.1.6   VISITATION RIGHTS.

                Each Loan Party shall, and shall cause each of its Subsidiaries
to, permit any of the officers or authorized employees or representatives of the
Agent or any of the Banks to visit and inspect any of its properties and to
examine and make excerpts from its books and records and discuss its business
affairs, finances and accounts with its officers, all in such detail and at such
times and as often as any of the Banks may reasonably request, PROVIDED that
each Bank shall provide the Borrower and the Agent with reasonable notice prior
to any visit or inspection. In the event any Bank desires to visit and inspect
any Loan Party, such Bank shall make a reasonable effort to conduct such visit
and inspection contemporaneously with any visit and inspection to be performed
by the Agent.

                8.1.7   KEEPING OF RECORDS AND BOOKS OF ACCOUNT.

                The Borrower shall, and shall cause each Subsidiary of the
Borrower to, maintain and keep proper books of record and account which enable
the Borrower and its Subsidiaries to issue financial statements in accordance
with GAAP and as otherwise required by applicable Laws of any Official Body
having jurisdiction over the Borrower or any Subsidiary of the Borrower, and in
which full, true and correct entries shall be made in all material respects of
all its dealings and business and financial affairs.

                                      -62-
<PAGE>

                8.1.8   PLANS AND BENEFIT ARRANGEMENTS.

                The Borrower shall, and shall cause each of its Subsidiaries to,
comply with ERISA, the Internal Revenue Code and other applicable Laws
applicable to Plans and Benefit Arrangements except where such failure, alone or
in conjunction with any other failure, would not result in a Material Adverse
Change. Without limiting the generality of the foregoing, the Borrower shall
cause all of its Plans and all Plans maintained by any of its Subsidiaries to be
funded in accordance with the minimum funding requirements of ERISA and shall
make, and cause each of its Subsidiaries to make, in a timely manner, all
contributions due to Plans, Benefit Arrangements and Multiemployer Plans.

                8.1.9   COMPLIANCE WITH LAWS.

                Each Loan Party shall, and shall cause each of its Subsidiaries
to, comply with all applicable Laws, including all Environmental Laws, in all
respects, PROVIDED that it shall not be deemed to be a violation of this Section
8.1.9 if any failure to comply with any Law would not result in fines,
penalties, remediation costs, other similar liabilities or injunctive relief
which in the aggregate would constitute a Material Adverse Change.

                8.1.10  USE OF PROCEEDS.

                The Loan Parties will use the Letters of Credit and the proceeds
of the Loans only to provide a portion of the proceeds required for the
acquisition of the Founding Companies and the Permitted Acquisitions, to pay
related fees and expenses and to fund working capital and general corporate
needs. The Loan Parties shall not use the Letters of Credit and the proceeds of
the Loans for any purpose which contravenes any applicable Law or any provision
hereof.

                8.1.11  FURTHER ASSURANCES.

                Each Loan Party shall, from time to time, at its expense,
faithfully preserve and protect the Agent's Lien on and Prior Security Interest
in the Collateral as a continuing first priority perfected Lien, subject only to
Permitted Liens, and shall do such other acts and things as the Agent in its
sole discretion may deem necessary or advisable from time to time in order to
preserve, perfect and protect the Liens granted under the Loan Documents and to
exercise and enforce its rights and remedies thereunder with respect to the
Collateral.

                8.1.12  SUBORDINATION OF INTERCOMPANY LOANS; MANAGEMENT FEES.

                Each Loan Party shall cause any intercompany Indebtedness, loans
or advances owed by any Loan Party to any other Loan Party to be subordinated
pursuant to the terms of the Intercompany Subordination Agreement. The Borrower
shall cause any fees and similar obligations to First Chicago Equity
Corporation, Carlisle 1999, L.P. and SKM Equity Fund II, L.P. and SKM Investment
Fund II (and any Affiliates of the foregoing) in connection with the

                                      -63-
<PAGE>

First Chicago Equity Corporation's, Carlisle 1999, L.P.'s and Saunders, Karp &
Megrue's management of the Loan Parties (the "MANAGEMENT FEES") to be
subordinated to the Obligations pursuant to the Management Fee Subordination
Agreements. Management Fees shall not exceed $2,000,000 in the aggregate in any
fiscal year.

                8.1.13  INTEREST RATE PROTECTION.

                The Borrower shall have entered into an interest rate protection
agreement with a financial institution acceptable to the Agent (i) in an amount
equal to at least 50% of the Term Loans advanced by the Banks on or before the
Closing Date, and (ii) for such a period and with such other terms and
conditions as shall be acceptable to the Agent. Within thirty (30) days after
each of (a) September 30, 2000 and (b) December 31, 2000, the Borrower shall
enter into an interest rate protection agreement with a financial institution
acceptable to the Agent for a period of at least three (3) years (i) in an
amount equal to at least 50% of the Term Loans advanced by the Banks subsequent
to the Closing Date and through September 30, 2000 or December 31, 2000, as
applicable, and (ii) with such other terms and conditions as shall be acceptable
to the Agent. The interest rate protection agreements referenced above are
hereby defined collectively as the "INTEREST RATE PROTECTION AGREEMENT". Each of
the Banks and each Affiliate of a Bank which such Bank utilizes in connection
with any such Interest Rate Protection Agreement shall be acceptable to the
Agent for purposes of the preceding sentences. Documentation for the Interest
Rate Protection Agreement shall be in a standard International Swap Dealer
Association Agreement, shall provide for the method of calculating the
reimbursable amount of the provider's credit exposure in a reasonable and
customary manner, shall be reasonably satisfactory to the Agent and shall not
allow that any collateral be provided as security for such agreement unless a
Bank or an Affiliate of a Bank is providing the Interest Rate Protection
Agreement.

                8.1.14  KEY MAN LIFE INSURANCE.

                The Borrower shall have delivered to the Agent evidence of key
man life insurance policies obtained by the Borrower (the "KEY MAN LIFE
INSURANCE") on the life of Ismael Perera in an amount of not less than
$3,000,000 coverage and with terms acceptable to the Agent and such insurance
policies shall be collaterally assigned to the Agent on behalf of the Banks
under terms and conditions set forth on Exhibit 8.1.14. In its reasonable
discretion the Agent shall make the proceeds of such life insurance policy paid
to the Agent available to the Borrower for purposes of recruiting executives for
the Borrower. Provided no Event of Default has occurred, the Agent shall release
such assignment two years after issuance of such policy or policies, at which
time the Borrower may discontinue such coverage in its discretion.

                8.1.15  ENVIRONMENTAL ASSESSMENTS.

                As soon as reasonably practicable and, in any event within
thirty (30) days of requesting by (i) the Agent or the Syndication Agent or (ii)
any Bank together with the Agent or the Syndication Agent (the "REQUESTING
PARTY"), the Borrower shall deliver to the Agent, with a copy for each Lender,
written environmental assessments, prepared by a third party reasonably

                                      -64-
<PAGE>

satisfactory to the Requesting Party, conforming to the standards of the ASTM
"Standard Practice for Environmental Assessments: Phase I Environmental Site
Assessment Process" for each of the Borrower's operating locations and owned
properties, if any. If the Borrower does not promptly engage such third party to
commence the preparation of the written assessment, then, the Requesting Party
may do so at the Borrower's expense and the Borrower will provide reasonable
access to its facilities and management and cooperate in the preparation of such
report.

        8.2     NEGATIVE COVENANTS.

        The Loan Parties, jointly and severally, covenant and agree that until
payment in full of the Loans, Reimbursement Obligations and Letter of Credit
Borrowings and interest thereon, expiration or termination of all Letters of
Credit, satisfaction of all of the Loan Parties' other Obligations (other than
contingent Obligations for indemnification) hereunder and termination of the
Commitments, the Loan Parties shall comply with the following negative
covenants:

                8.2.1   INDEBTEDNESS.

                Each of the Loan Parties shall not, and shall not permit any of
its Subsidiaries to, at any time create, incur, assume or suffer to exist any
Indebtedness, except:

                        (i)     Indebtedness under the Loan Documents;

                        (ii)    Existing Indebtedness as set forth on SCHEDULE
8.2.1 (including any extensions or renewals thereof, PROVIDED there is no
increase in the amount thereof or other significant change in the terms thereof
unless otherwise specified on SCHEDULE 8.2.1);

                        (iii)   Capitalized and operating leases as and to the
extent permitted under Section 8.2.15 [Capital Expenditures and Leases];

                        (iv)    Indebtedness secured by Purchase Money Security
Interests not exceeding $2,000,000;

                        (v)     Indebtedness of a Loan Party to another Loan
Party which is subordinated in accordance with the provisions of Section 8.1.12
[Subordination of Intercompany Loans];

                        (vi)    Indebtedness arising with respect to any
Interest Rate Protection Agreement approved by the Agent under Section 8.1.13;

                        (vii)   Indebtedness arising from surety bonds or
performance bonds securing performance of the Borrower or any of its
Subsidiaries;

                                      -65-
<PAGE>

                        (viii)  Indebtedness not in excess of $100,000 at any
one time outstanding in connection with the financing of insurance premiums;

                        (ix)    Indebtedness permitted under Section 8.2.6(2) in
connection with any Permitted Acquisition;

                        (x)     Indebtedness owed to officers, directors and
employees of the Loan Parties which is incurred in connection with any
redemption of shares of the Borrower permitted under Section 8.2.5; and

                        (xi)    Indebtedness not otherwise described in clauses
(i) through (x) above which does not exceed $500,000 at any one time
outstanding.

                8.2.2   LIENS.

                Each of the Loan Parties shall not, and shall not permit any of
its Subsidiaries to, at any time create, incur, assume or suffer to exist any
Lien on any of its property or assets, tangible or intangible, now owned or
hereafter acquired, or agree or become liable to do so, except Permitted Liens.

                8.2.3   GUARANTIES.

                Each of the Loan Parties shall not, and shall not permit any of
its Subsidiaries to, at any time, directly or indirectly, become or be liable in
respect of any Guaranty, or assume, guarantee, become surety for, endorse or
otherwise agree, become or remain directly or contingently liable upon or with
respect to any obligation or liability of any other Person, except for (i)
Guaranties of Indebtedness of the Loan Parties permitted hereunder, (ii)
Guaranties by any Loan Party of the obligations of another Loan Party (other
than Indebtedness), and (iii) Guaranties assumed in connection with the
acquisition of the Founding Companies or as permitted under Section 8.2.6 in
connection with Permitted Acquisitions.

                8.2.4   LOANS AND INVESTMENTS.

                Each of the Loan Parties shall not, and shall not permit any of
its Subsidiaries to, at any time make or suffer to remain outstanding any loan
or advance to, or purchase, acquire or own any stock, bonds, notes or securities
of, or any partnership interest (whether general or limited) or limited
liability company interest in, or any other investment or interest in, or make
any capital contribution to, any other Person, or agree, become or remain liable
to do any of the foregoing, except:

                        (i)     trade credit extended on usual and customary
terms in the ordinary course of business;

                                      -66-
<PAGE>

                        (ii)    advances to employees to meet expenses incurred
by such employees in the ordinary course of business;

                        (iii)   loans, advances and investments in other Loan
Parties;

                        (iv)    the following permitted investments: (i) direct
obligations of the United States of America or any agency or instrumentality
thereof or obligations backed by the full faith and credit of the United States
of America maturing in twelve (12) months or less from the date of acquisition;
(ii) commercial paper maturing in one year or less rated not lower than A-1, by
Standard & Poor's or P-1 by Moody's Investors Service, Inc. on the date of
acquisition; (iii) demand deposits, time deposits or certificates of deposit
maturing within one year in commercial banks whose obligations are rated A-1, A
or the equivalent or better by Standard & Poor's on the date of acquisition,
(iv) mutual funds investing solely in investments described in items (i) through
(iii) above, and (v) money market accounts having a fixed price per share;

                        (v)     Promissory notes issued by officers, directors
and employees of the Loan Parties in exchange for equity interests of the
Borrower provided that the Loan Parties did not provide cash to allow such
officers, directors and employees to purchase such equity interests;

                        (vi)    Promissory notes issued by Persons which
purchase assets of the Loan Parties as permitted under Section 8.2.7, provided
that such deferred portion of the consideration paid by such Persons does not
exceed 20 percent of the total purchase price, and provided further, that the
amount of all such loans and investments at any one time outstanding does not
exceed $600,000; and

                        (vii)   Investments set forth on SCHEDULE 8.2.4.

                8.2.5   DIVIDENDS AND RELATED DISTRIBUTIONS.

                Each of the Loan Parties shall not, and shall not permit any of
its Subsidiaries to, make or pay, or agree to become or remain liable to make or
pay, any dividend or other distribution of any nature (whether in cash,
property, securities or otherwise) on account of or in respect of its shares of
capital stock, partnership interests or limited liability company interests on
account of the purchase, redemption, retirement or acquisition of its shares of
capital stock (or warrants, options or rights therefor), partnership interests
or limited liability company interests, except (i) dividends or other
distributions payable to another Loan Party (ii) dividends of the Borrower to
shareholders of the Borrower which are made in capital stock of the Borrower,
and, (iii) provided no Event of Default has occurred, payments in redemption of
the capital stock of the Borrower owned by officers, directors and employees of
the Loan Parties who leave or are terminated from such positions, provided
further, that such cash payments shall not exceed $1,000,000 in any fiscal year,
such greater amount not to exceed $1,500,000 in any

                                      -67-
<PAGE>

fiscal year as is acceptable to the Agent or such greater amount as is
acceptable to the Required Banks. Each of the Loan Parties shall not, and shall
not permit any of its Subsidiaries to enter into or agree to enter into any
agreement which prohibits or restricts it from paying or agreeing to pay any
dividend or other distribution to another Loan Party.

                8.2.6   LIQUIDATIONS, MERGERS, CONSOLIDATIONS, ACQUISITIONS.

                Each of the Loan Parties shall not, and shall not permit any of
its Subsidiaries to, dissolve, liquidate or wind-up its affairs, or become a
party to any merger or consolidation, or acquire by purchase, lease or otherwise
all or substantially all of the assets or capital stock of any other Person,
PROVIDED that

                (1)     any Loan Party other than the Borrower may consolidate
or merge into another Loan Party which is wholly-owned by one or more of the
other Loan Parties,

                (2)     any Loan Party may acquire, whether by purchase or by
merger, (A) all of the ownership interests of another Person or (B)
substantially all of the assets of another Person or of a business or division
of another Person (each a "PERMITTED ACQUISITION"), PROVIDED that each of the
following requirements is met:

                        (i)     if the Loan Parties are acquiring the ownership
interests in such Person, such Person shall execute a Guarantor Joinder and join
this Agreement as a Guarantor pursuant to Section 11.18 [Joinder of Guarantors]
on or before the date of such Permitted Acquisition;

                        (ii)    the Loan Parties, such Person and its owners, as
applicable, shall grant Liens in the assets of or acquired from and stock or
other ownership interests in such Person and otherwise comply with Section 11.18
[Joinder of Guarantors] on or before the date of such Permitted Acquisition;

                        (iii)   the board of directors or other equivalent
governing body of such Person shall have approved such Permitted Acquisition;

                        (iv)    the business acquired, or the business conducted
by the Person whose ownership interests are being acquired, as applicable (a)
shall be substantially the same as one or more line or lines of business
conducted by the Loan Parties or a reasonable extension of such line or lines of
business and shall comply with Section 8.2.10 [Continuation of or Change in
Business], the business shall be located in the United States, and, in the case
of the acquisition of the ownership interests of another Person, such Person
shall be a domestic entity organized in the United States, a state or territory
of the United States or Canada, (b) shall have reported positive EBITDA for the
immediately preceding twelve month period as determined by the acquisition due
diligence reports prepared by Ernst & Young, LLP, (c) shall have been audited by
Ernst & Young, LLP or another nationally recognized accounting firm or undergone
a review by Ernst & Young, LLP or another nationally recognized accounting firm
as part of the

                                      -68-
<PAGE>

acquisition due diligence and such audit or review is satisfactory to the Agent
in its reasonable discretion;

                        (v)     no Potential Default or Event of Default shall
exist immediately prior to and after giving effect to such Permitted
Acquisition;

                        (vi)    pro forma Consolidated Total Indebtedness to
Consolidated EBITDA (after deducting the greater of $3,500,000 or the actual
corporate overhead for the period ending December 31, 2000 and the actual
corporate overhead thereafter) for the twelve month period ended immediately
prior to the closing of any Permitted Acquisition shall not exceed 3.30 to 1.00
and any pro forma adjustments relating to any Permitted Acquisitions shall be
approved by the Agent;

                        (vii)   after giving effect to such acquisition
(including the payment of any prospective earn-outs), the Borrower shall have at
least $10,000,000 of availability of Revolving Credit Loans;

                        (viii)  except for the acquisition of those entities set
forth on SCHEDULE 8.2.6, in connection with the closing of any single Permitted
Acquisition, the sum of the Loans advanced plus any Indebtedness assumed shall
not exceed $20,000,000 without the consent of the Agent and the Required Banks,
and any Indebtedness assumed shall be unsecured and fully subordinated to the
Obligations, shall not amortize during the term of the Obligations and all terms
of such Indebtedness shall be acceptable to the Agent;

                        (ix)    the Borrower shall demonstrate that it shall be
in compliance, based on the most recently available twelve month period as
reasonably agreed to by the Agent, with the covenants contained in Section
8.2.6(vi), Sections 8.2.16 through 8.2.18 after giving effect to such Permitted
Acquisition (including in such computation Indebtedness or other liabilities
assumed or incurred in connection with such Permitted Acquisition and giving pro
forma effect to net Consolidated EBITDA of the Person or assets so acquired as
described in Section 8.2.19) by delivering at least five (5) Business Days prior
to such Permitted Acquisition a certificate in the form of EXHIBIT 8.2.6
evidencing such compliance;

                        (x)     the Borrower shall deliver to the Agent and each
of the Banks consolidated and, prior to the later of December 31, 2000 or an
IPO, consolidating financial projections of the Borrower and its Subsidiaries
incorporating the pending Permitted Acquisition for a period of five years after
the acquisition including the year of acquisition except, however that the
projection period will not go past 2007 in any case;

                        (xi)    the Loan Parties shall deliver to the Agent and
each of the Banks (a) ten (10) Business Days before such Permitted Acquisition,
copies of a description and financial statements of the entity or assets to be
acquired and related due diligence information and (b) at least five (5)
Business Days before such Permitted Acquisition, copies of any agreements
entered into or proposed to be entered into by such Loan Parties in connection
with

                                      -69-
<PAGE>

such Permitted Acquisition and shall deliver to the Agent such other information
about such Person or its assets as any Bank may reasonably require; and

                        (xii)   with respect to each Permitted Acquisition in
which a Loan Party has an obligation to make future earn-out payments in
connection with the acquisition, such earn-out payments shall be deferred and
not paid in the event that at the time scheduled for such earn-out payment or
after giving effect to such earn-out payment, the Leverage Ratio, determined on
a pro forma basis at such time and after giving effect to such payment, exceeds
the lesser of (a) 3.3 to 1.0 or (b) the applicable Leverage Ratio covenant set
forth in Section 8.2.17 at such time; provided however, to the extent that the
shareholders of the Borrower provide additional cash equity for the purpose of
funding such earn-out payment or such Loan Party otherwise has available cash on
hand but in no event including Loan proceeds, such payment may be made by the
Loan Party.

Notwithstanding the foregoing, the acquisition by the Borrower of less than all
of the ownership interests of Telpro at the Initial Telpro Closing pursuant to
the Telpro Stock Purchase Agreement shall be considered a Permitted Acquisition
subject to the terms of the Telpro Stock Purchase Agreement. On and after the
Initial Telpro Closing, Telpro shall be considered a Subsidiary of the Borrower
for all purposes of this Agreement and the other Loan Documents. In connection
with the calculation of the consolidated financial statements of the Borrower
for purposes of this Agreement, from and after the Initial Telpro Closing until
such time as Telpro is a wholly-owned Subsidiary of the Borrower, all of the
EBITDA, Indebtedness, Fixed Charges and interest expense of Telpro shall accrue
to the Borrower notwithstanding any reduction of such amounts under GAAP based
upon the Borrower's ownership of less than all the ownership interests of
Telpro; and

                (3)     Linc.net Acquisition II may liquidate provided that all
ownership interests in other Loan Parties and assets of Linc.net Acquisition II
are transferred to the Borrower or a Guarantor and such ownership interest are
subject to the Pledge Agreement.

                8.2.7   DISPOSITIONS OF ASSETS OR SUBSIDIARIES.

                Each of the Loan Parties shall not, and shall not permit any of
its Subsidiaries to, sell, convey, assign, lease, abandon or otherwise transfer
or dispose of, voluntarily or involuntarily, any of its properties or assets,
tangible or intangible (including sale, assignment, discount or other
disposition of accounts, contract rights, chattel paper, equipment or general
intangibles with or without recourse or of capital stock, shares of beneficial
interest, partnership interests or limited liability company interests of a
Subsidiary of such Loan Party), except:

                        (i)     transactions involving the sale of inventory in
the ordinary course of business;

                                      -70-
<PAGE>

                        (ii)    any sale, transfer or lease of assets in the
ordinary course of business which are no longer necessary or required in the
conduct of such Loan Party's or such Subsidiary's business;

                        (iii)   any sale, transfer or lease of assets by any
Loan Party to another Loan Party;

                        (iv)    any sale, transfer or lease of assets in the
ordinary course of business which are replaced by substitute assets acquired or
leased within the parameters of Section 8.2.15 [Capital Expenditures and
Leases], PROVIDED such substitute assets are subject to the Banks' Prior
Security Interest; or

                        (v)     any sale, transfer or lease of assets, other
than those specifically excepted pursuant to clauses (i) through (iv) above,
which is approved by the Required Banks so long as the after-tax proceeds (as
reasonably estimated by the Borrower) are applied as a mandatory prepayment of
the Term Loans in accordance with the provisions of Section 5.5.2 [Sale of
Assets] above.

                8.2.8   AFFILIATE TRANSACTIONS.

                Except as set forth on SCHEDULE 8.2.8, each of the Loan Parties
shall not, and shall not permit any of its Subsidiaries to, enter into or carry
out any transaction (including purchasing property or services from or selling
property or services to any Affiliate of any Loan Party or other Person) with an
Affiliate of such Loan Party unless such transaction is not otherwise prohibited
by this Agreement, is entered into in the ordinary course of business upon fair
and reasonable arm's-length terms and conditions which are fully disclosed to
the Agent and is in accordance with all applicable Law.

                8.2.9   SUBSIDIARIES, PARTNERSHIPS AND JOINT VENTURES.

                Each of the Loan Parties shall not, and shall not permit any of
its Subsidiaries to own or create directly or indirectly any Subsidiaries other
than (i) any Subsidiary which has joined this Agreement as Guarantor on the
Closing Date and (ii) any Subsidiary formed or, to the extent permitted by
Section 8.2.6, acquired after the Closing Date which joins this Agreement as a
Guarantor pursuant to Section 11.18 [Joinder of Guarantors], PROVIDED that such
Subsidiary and the Loan Parties, as applicable, shall grant and cause to be
perfected Liens having a Prior Security Interest to the Agent for the benefit of
the Banks in the assets held by, and stock of or other ownership interests in,
such Subsidiary pursuant to the Loan Documents. Each of the Loan Parties shall
not become or agree to (1) become a general or limited partner in other Loan
Parties, (2) become a member or manager of, or hold a limited liability company
interest in, a limited liability company, except that the Loan Parties may be
members or managers of, or hold limited liability company interests in, other
Loan Parties, or (3) become a joint venturer or hold a joint venture interest in
any joint venture.

                                      -71-
<PAGE>

                8.2.10  CONTINUATION OF OR CHANGE IN BUSINESS.

                Each of the Loan Parties shall not, and shall not permit any of
its Subsidiaries to, engage in any business other than substantially as
conducted and operated by such Loan Party or Subsidiary during the present
fiscal year and reasonable extensions of such business, and such Loan Party or
Subsidiary shall not permit any material change in such business.

                8.2.11  PLANS AND BENEFIT ARRANGEMENTS.

                Each of the Loan Parties shall not, and shall not permit any of
its Subsidiaries to:

                        (i)     fail to satisfy the minimum funding requirements
of ERISA and the Internal Revenue Code with respect to any Plan;

                        (ii)    request a minimum funding waiver from the
Internal Revenue Service with respect to any Plan;

                        (iii)   engage in a Prohibited Transaction with any
Plan, Benefit Arrangement or Multiemployer Plan which, alone or in conjunction
with any other circumstances or set of circumstances resulting in liability
under ERISA, would constitute a Material Adverse Change;

                        (iv)    permit the aggregate actuarial present value of
all benefit liabilities (whether or not vested) under each Plan, determined on a
plan termination basis, as disclosed in the most recent actuarial report
completed with respect to such Plan, to exceed, as of any actuarial valuation
date, the fair market value of the assets of such Plan;

                        (v)     fail to make when due any contribution to any
Multiemployer Plan that the Borrower or any member of the ERISA Group may be
required to make under any agreement relating to such Multiemployer Plan, or any
Law pertaining thereto;

                        (vi)    withdraw (completely or partially) from any
Multiemployer Plan or withdraw (or be deemed under Section 4062(e) of ERISA to
withdraw) from any Multiple Employer Plan, where any such withdrawal is likely
to result in a material liability of the Borrower or any member of the ERISA
Group;

                        (vii)   terminate, or institute proceedings to
terminate, any Plan, where such termination is likely to result in a material
liability to the Borrower or any member of the ERISA Group;

                        (viii)  make any amendment to any Plan with respect to
which security is required under Section 307 of ERISA; or

                                      -72-
<PAGE>

                        (ix)    fail to give any and all notices and make all
disclosures and governmental filings required under ERISA or the Internal
Revenue Code, where such failure is likely to result in a Material Adverse
Change.

                8.2.12  FISCAL YEAR.

                The Borrower shall not, and shall not permit any Subsidiary of
the Borrower to, change its fiscal year from the twelve (12)-month period
beginning January 1 and ending December 31, other than changes made in the
fiscal year of a Subsidiary to cause its fiscal year to begin January 1 and end
December 31.

                8.2.13  ISSUANCE OF STOCK.

                Other than as contemplated by the Acquisition Agreements, each
of the Loan Parties other than the Borrower shall not, and shall not permit any
of its Subsidiaries to, issue any additional shares of its capital stock or any
options, warrants or other rights in respect thereof except for the issuance of
capital stock to other Loan Parties, provided that such additional capital stock
is pledged to the Agent pursuant to the Pledge Agreement and no Change of
Control results therefrom.

                8.2.14  CHANGES IN ORGANIZATIONAL DOCUMENTS AND ACQUISITION
                        AGREEMENTS.

                Each of the Loan Parties shall not, and shall not permit any of
its Subsidiaries to, amend in any respect its certificate of incorporation
(including any provisions or resolutions relating to capital stock), by-laws,
certificate of limited partnership, partnership agreement, certificate of
formation, limited liability company agreement or other organizational documents
without providing at least written notice to the Agent and the Banks prior to
the effectiveness of such amendments and, in the event such change would be
adverse to the Banks as determined by the Agent in its reasonable discretion,
obtaining the prior written consent of the Required Banks.

                The Loan Parties shall not, and shall not permit any Subsidiary
to, amend or modify any provisions of the Acquisition Agreements in any material
manner or in a manner adverse to the Banks without providing at least ten (10)
calendar days' prior notice to the Agent, and in the event such change would be
adverse to the Banks as determined by the Agent in its reasonable discretion,
obtaining the prior written consent of the Required Banks.

                8.2.15  CAPITAL EXPENDITURES AND LEASES.

                Each of the Loan Parties shall not, and shall not permit any of
its Subsidiaries to, make any payments on account of the purchase or lease of
any assets which if purchased would constitute fixed assets or which if leased
would constitute a capitalized lease, if the aggregate of all such payments, as
measured at the end of each fiscal quarter of the Borrower

                                      -73-
<PAGE>

for the four fiscal quarters then ended, is greater than five percent (5%) of
the consolidated revenues of the Borrower and its Subsidiaries, as measured at
the end of such fiscal quarter of the Borrower for the four fiscal quarters then
ended. Capital Expenditures measured as of any quarter shall be based on actual
capital expenditures for the four fiscal quarters then ended. All such capital
expenditures and capitalized leases shall be made under usual and customary
terms and in the ordinary course of business. Property purchased from the
proceeds of a Casualty and property purchased from the proceeds of a disposition
of assets pursuant to Section 8.2.7(v) shall be excluded for purposes of
calculating the above payment limitations. In addition, consideration paid by
the Borrower and its Subsidiaries in connection with the acquisition of the
Founding Companies and Consideration shall be excluded from the calculation of
the aggregate capital expenditures set forth above.

                Each of the Loan Parties shall not, and shall not permit its
Subsidiaries to, make any payments exceeding $10,000,000 in the aggregate in any
period of four (4) consecutive fiscal quarters on account of the rental or lease
of real or personal property of any other Person which does not constitute a
capitalized lease. All such leases shall be made under usual and customary terms
and in the ordinary course of business.

                8.2.16  MINIMUM FIXED CHARGE COVERAGE RATIO.

                The Loan Parties shall not at any time permit the Fixed Charge
Coverage Ratio, calculated as of the end of each fiscal quarter for the four (4)
fiscal quarters then ended, commencing with the fiscal quarter ended June 30,
2000, to be less than the ratio set forth below for the periods specified below:

<TABLE>
<CAPTION>
            Fiscal quarters ending
          during the following Periods                        Ratio
          ----------------------------                        -----
          <S>                                             <C>
          Closing Date through 6/29/02                    1.00 to 1.00
          6/30/02 through 6/29/03                         1.05 to 1.00
          6/30/03 and thereafter                          1.10 to 1.00
</TABLE>

                8.2.17  MAXIMUM LEVERAGE RATIO.

                The Loan Parties shall not at any time permit the Leverage
Ratio, calculated as of the end of each fiscal quarter for the four (4) fiscal
quarters then ended, commencing with the fiscal quarter ended June 30, 2000, to
exceed the ratio set forth below for the periods specified below:

<TABLE>
<CAPTION>
            Fiscal quarters ending
          during the following Periods                        Ratio
          ----------------------------                        -----
          <S>                                             <C>
          Closing Date through 12/31/00                   4.00 to 1.00
</TABLE>

                                      -74-
<PAGE>

<TABLE>
          <S>                                             <C>
          1/01/01 through 6/30/02                         3.75 to 1.00
          7/01/02 through 6/30/03                         3.50 to 1.00
          7/01/03 through 6/30/04                         3.00 to 1.00
          7/01/04 and thereafter                          2.50 to 1.00
</TABLE>

                8.2.18  MINIMUM INTEREST COVERAGE RATIO.

                The Loan Parties shall not permit at any time the ratio of
Consolidated EBITDA to consolidated cash interest expense of the Borrower and
its Subsidiaries, calculated as of the end of each fiscal quarter for the four
(4) fiscal quarters then ended, commencing with the fiscal quarter ended June
30, 2000, to be less than the ratio set forth below for the periods specified
below:

<TABLE>
<CAPTION>
            Fiscal quarters ending
          during the following Periods                        Ratio
          ----------------------------                        -----
          <S>                                             <C>
          Closing Date through 6/29/01                    2.75 to 1.00
          6/30/01 through 6/29/02                         3.00 to 1.00
          6/30/02 through 6/29/03                         3.25 to 1.00
          6/30/03 and thereafter                          3.50 to 1.00
</TABLE>

                8.2.19  CALCULATION OF FINANCIAL STATEMENT COVENANTS.

                For purposes of calculating compliance with the financial
statement covenants set forth in Section 8.2.6(2) and Sections 8.2.16 through
8.2.18 and the interest rates and fees set forth on Pricing Grid, the following
will be taken into account:

                        (i)     for the calendar quarter ended September 30,
1999, Consolidated EBITDA shall be deemed to be $10,000,000, for the calendar
quarter ended December 31, 1999, Consolidated EBITDA shall be deemed to be
$10,000,000, and for the calendar quarter ended March 31, 2000, Consolidated
EBITDA shall be deemed to be $10,000,000;

                        (ii)    With respect to any period after March 31, 2000
during which the acquisition of a Founding Company or a Permitted Acquisition
has occurred, for purposes of determining compliance with the financial
covenants set forth in Sections 8.2.16 through 8.2.18, Consolidated EBITDA and
the components of Fixed Charges shall be calculated with respect to such period
on a pro forma basis (including pro forma adjustments similar in nature to those
outlined in the due diligence reports delivered pursuant to Sections 7.1.18 [Due
Diligence and Contingent Liabilities] and 8.2.6(2)(iv) [Liquidations, Mergers,
Consolidations, Acquisitions]), using the historical financial statements of the
Founding Companies and the acquired entity in a Permitted Acquisition and the
consolidated financial statements of the

                                      -75-
<PAGE>

Borrower and its Subsidiaries which shall be reformulated as if the acquisition
of the Founding Companies and such Permitted Acquisition, and any Indebtedness
incurred or repaid in connection therewith, had been consummated or incurred or
repaid at the beginning of such period (and assuming that such Indebtedness
bears interest during any portion of the applicable measurement period prior to
the relevant acquisition at the weighted average of the interest rates
applicable to outstanding Loans incurred during such period).

        8.3     REPORTING REQUIREMENTS.

        The Loan Parties, jointly and severally, covenant and agree that until
payment in full of the Loans, Reimbursement Obligations and Letter of Credit
Borrowings and interest thereon, expiration or termination of all Letters of
Credit, satisfaction of all of the Loan Parties' other Obligations hereunder and
under the other Loan Documents and termination of the Commitments, other than
contingent Obligations for indemnification, the Loan Parties will furnish or
cause to be furnished to the Agent and each of the Banks the financial reports
and other information set forth on EXHIBIT 8.3.

                                   9. DEFAULT

        9.1     EVENTS OF DEFAULT.

        An Event of Default shall mean the occurrence or existence of any one or
more of the following events or conditions (whatever the reason therefor and
whether voluntary, involuntary or effected by operation of Law):

                9.1.1   PAYMENTS UNDER LOAN DOCUMENTS.

                The Borrower shall fail to pay any principal of any Loan
(including scheduled installments, mandatory prepayments or the payment due at
maturity) or any, Reimbursement Obligation or Letter of Credit Borrowing after
such principal or payment becomes due in accordance with the terms hereof, or
the Borrower shall fail to pay any interest on any Loan or any other amount
owing hereunder or under the other Loan Documents within a period of three
Business Days after such interest or other amount becomes due in accordance with
the terms hereof or thereof;

                9.1.2   BREACH OF WARRANTY.

                Any representation or warranty made at any time by any of the
Loan Parties herein or by any of the Loan Parties in any other Loan Document, or
in any certificate, other instrument or statement furnished pursuant to the
provisions hereof or thereof, shall prove to have been false or misleading in
any materially adverse respect as of the time it was made or furnished;

                                      -76-
<PAGE>

                9.1.3   BREACH OF NEGATIVE COVENANTS OR VISITATION RIGHTS.

                Any of the Loan Parties shall default in the observance or
performance of any covenant contained in Section 8.1.6 [Visitation Rights] or
Section 8.2 [Negative Covenants];

                9.1.4   BREACH OF OTHER COVENANTS.

                Any of the Loan Parties shall default in the observance or
performance of any other covenant, condition or provision hereof or of any other
Loan Document and such default shall continue unremedied for a period of fifteen
(15) Business Days after any officer of any Loan Party becomes aware of the
occurrence thereof (such grace period to be applicable only in the event such
default can be remedied by corrective action of the Loan Parties as determined
by the Agent in its sole discretion);

                9.1.5   DEFAULTS IN OTHER AGREEMENTS OR INDEBTEDNESS.

                A default or event of default shall occur at any time under the
terms of any other agreement involving borrowed money or the extension of credit
or any other Indebtedness under which any Loan Party or Subsidiary of any Loan
Party may be obligated as a borrower or guarantor in excess of $1,000,000 in the
aggregate, and such breach, default or event of default consists of the failure
to pay (beyond any period of grace permitted with respect thereto, whether
waived or not) any indebtedness when due (whether at stated maturity, by
acceleration or otherwise) or if such breach or default permits or causes the
acceleration of any indebtedness (whether or not such right shall have been
waived) or the termination of any commitment to lend;

                9.1.6   FINAL JUDGMENTS OR ORDERS.

                Any final judgments or orders for the payment of money in excess
of $1,000,000 in the aggregate shall be entered against any Loan Party by a
court having jurisdiction in the premises, which judgment is not discharged,
vacated, bonded or stayed pending appeal within a period of thirty (30) days
from the date of entry;

                9.1.7   LOAN DOCUMENT UNENFORCEABLE.

                Any of the Loan Documents shall cease to be legal, valid and
binding agreements enforceable against the Loan Party executing the same or such
party's successors and assigns (as permitted under the Loan Documents) in
accordance with the respective terms thereof or shall in any way be terminated
(except in accordance with its terms) or become or be declared ineffective or
inoperative or shall in any way be challenged or contested by a Loan Party or
cease to give or provide the respective Liens, security interests, rights,
titles, interests, material remedies, powers or privileges intended to be
created thereby;

                                      -77-
<PAGE>

                9.1.8   UNINSURED LOSSES; PROCEEDINGS AGAINST ASSETS.

                There shall occur any material uninsured damage to or loss,
theft or destruction of any of the Collateral in excess of $1,000,000 or the
Collateral or any other of the Loan Parties' or any of their Subsidiaries'
assets are attached, seized, levied upon or subjected to a writ or distress
warrant; or such come within the possession of any receiver, trustee, custodian
or assignee for the benefit of creditors and the same is not cured within thirty
(30) days thereafter;

                9.1.9   NOTICE OF LIEN OR ASSESSMENT.

                A notice of Lien or assessment in excess of $1,000,000 which is
not a Permitted Lien is filed of record with respect to all or any part of any
of the Loan Parties' or any of their Subsidiaries' assets by the United States,
or any department, agency or instrumentality thereof, or by any state, county,
municipal or other governmental agency, including the PBGC, or any taxes or
debts owing at any time or times hereafter to any one of these becomes payable
and the same is not paid within thirty (30) days after the same becomes payable;

                9.1.10  INSOLVENCY.

                Any Loan Party or any Subsidiary of a Loan Party ceases to be
solvent or admits in writing its inability to pay its debts as they mature;

                9.1.11  EVENTS RELATING TO PLANS AND BENEFIT ARRANGEMENTS.

                Any of the following occurs: (i) any Reportable Event, which the
Agent determines in good faith constitutes grounds for the termination of any
Plan by the PBGC or the appointment of a trustee to administer or liquidate any
Plan, shall have occurred and be continuing; (ii) proceedings shall have been
instituted or other action taken to terminate any Plan, or a termination notice
shall have been filed with respect to any Plan; (iii) a trustee shall be
appointed to administer or liquidate any Plan; (iv) the PBGC shall give notice
of its intent to institute proceedings to terminate any Plan or Plans or to
appoint a trustee to administer or liquidate any Plan; and, in the case of the
occurrence of (i), (ii), (iii) or (iv) above, the Agent determines in good faith
that the amount of the Borrower's liability is likely to exceed 10% of its
consolidated tangible net worth; (v) the Borrower or any member of the ERISA
Group shall fail to make any contributions when due to a Plan or a Multiemployer
Plan; (vi) the Borrower or any other member of the ERISA Group shall make any
amendment to a Plan with respect to which security is required under Section 307
of ERISA; (vii) the Borrower or any other member of the ERISA Group shall
withdraw completely or partially from a Multiemployer Plan; (viii) the Borrower
or any other member of the ERISA Group shall withdraw (or shall be deemed under
Section 4062(e) of ERISA to withdraw) from a Multiple Employer Plan; or (ix) any
applicable Law is adopted, changed or interpreted by any Official Body with
respect to or otherwise affecting one or more Plans, Multiemployer Plans or
Benefit Arrangements and, with respect to any of the events specified in (v),
(vi), (vii), (viii) or (ix), the Agent determines in good faith that

                                      -78-
<PAGE>

any such occurrence would be reasonably likely to materially and adversely
affect the total enterprise represented by the Borrower and its Subsidiaries;

                9.1.12  CESSATION OF BUSINESS.

                Any Loan Party or Subsidiary of a Loan Party ceases to conduct
its business as contemplated (other than Affiliates of Founding Companies or
Persons acquired in connection with Permitted Acquisitions where the Borrower
intends to discontinue the operations of such Person promptly following the
acquisition), except as expressly permitted under Section 8.2.6 [Liquidations,
Mergers, Etc.] or Section 8.2.7 [Dispositions of Assets or Subsidiaries], or any
Loan Party or Subsidiary of a Loan Party is enjoined, restrained or in any way
prevented by court order from conducting all or any material part of its
business and such injunction, restraint or other preventive order is not
dismissed within thirty (30) days after the entry thereof;

                9.1.13  CHANGE OF CONTROL.

                A Change of Control shall occur;

                9.1.14  INVOLUNTARY PROCEEDINGS.

                A proceeding shall have been instituted in a court having
jurisdiction in the premises seeking a decree or order for relief in respect of
any Loan Party or Subsidiary of a Loan Party in an involuntary case under any
applicable bankruptcy, insolvency, reorganization or other similar law now or
hereafter in effect, or for the appointment of a receiver, liquidator, assignee,
custodian, trustee, sequestrator, conservator (or similar official) of any Loan
Party or Subsidiary of a Loan Party for any substantial part of its property, or
for the winding-up or liquidation of its affairs, and such proceeding shall
remain undismissed or unstayed and in effect for a period of thirty (30)
consecutive days or such court shall enter a decree or order granting any of the
relief sought in such proceeding; or

                9.1.15  VOLUNTARY PROCEEDINGS.

                Any Loan Party or Subsidiary of a Loan Party shall commence a
voluntary case under any applicable bankruptcy, insolvency, reorganization or
other similar law now or hereafter in effect, shall consent to the entry of an
order for relief in an involuntary case under any such law, or shall consent to
the appointment or taking possession by a receiver, liquidator, assignee,
custodian, trustee, sequestrator, conservator (or other similar official) of
itself or for any substantial part of its property or shall make a general
assignment for the benefit of creditors, or shall fail generally to pay its
debts as they become due, or shall take any action in furtherance of any of the
foregoing, or there shall occur an "EVENT OF NONCOMPLIANCE" as such term is
defined in the Borrower's Amended Certificate of Designations for Series A
Redeemable Preferred Stock and Certificate of Designations for Series B
Preferred Stock of Linc.net, Inc. filed with the Delaware Secretary of State.

                                      -79-
<PAGE>

        9.2     CONSEQUENCES OF EVENT OF DEFAULT.

                9.2.1   EVENTS OF DEFAULT OTHER THAN BANKRUPTCY, INSOLVENCY OR
                        REORGANIZATION PROCEEDINGS.

                If an Event of Default specified under Sections 9.1.1 through
9.1.13 shall occur and be continuing, the Banks and the Agent shall be under no
further obligation to make Loans or issue Letters of Credit, as the case may be,
and the Agent may, and upon the request of the Required Banks, shall (i) by
written notice to the Borrower, declare the unpaid principal amount of the Notes
then outstanding and all interest accrued thereon, any unpaid fees and all other
Indebtedness of the Borrower to the Banks hereunder and thereunder to be
forthwith due and payable, and the same shall thereupon become and be
immediately due and payable to the Agent for the benefit of each Bank without
presentment, demand, protest or any other notice of any kind, all of which are
hereby expressly waived, and (ii) require the Borrower to, and the Borrower
shall thereupon, deposit in a non-interest-bearing account with the Agent, as
cash collateral for its Obligations under the Loan Documents, an amount equal to
the maximum amount currently or at any time thereafter available to be drawn on
all outstanding Letters of Credit, and the Borrower hereby pledges to the Agent
and the Banks, and grants to the Agent and the Banks a security interest in, all
such cash as security for such Obligations. Upon the curing of all existing
Events of Default to the satisfaction of the Required Banks, the Agent shall
return such cash collateral to the Borrower; and

                9.2.2   BANKRUPTCY, INSOLVENCY OR REORGANIZATION PROCEEDINGS.

                If an Event of Default specified under Section 9.1.14
[Involuntary Proceedings] or 9.1.15 [Voluntary Proceedings] shall occur, the
Banks shall be under no further obligations to make Loans hereunder and the
unpaid principal amount of the Loans then outstanding and all interest accrued
thereon, any unpaid fees and all other Indebtedness of the Borrower to the Banks
hereunder and thereunder shall be immediately due and payable, without
presentment, demand, protest or notice of any kind, all of which are hereby
expressly waived; and

                9.2.3   SET-OFF.

                If an Event of Default shall occur and be continuing, any Bank
to whom any Obligation is owed by any Loan Party hereunder or under any other
Loan Document or any participant of such Bank which has agreed in writing to be
bound by the provisions of EXHIBIT 10 and any branch, Subsidiary or Affiliate of
such Bank or participant anywhere in the world shall have the right, in addition
to all other rights and remedies available to it, without notice to such Loan
Party, to set-off against and apply to the then unpaid balance of all the Loans
and all other Obligations of the Borrower and the other Loan Parties hereunder
or under any other Loan Document, any debt owing to, and any other funds held in
any manner for the account of, the Borrower or such other Loan Party by such
Bank or participant or by such branch, Subsidiary or Affiliate, including all
funds in all deposit accounts (whether time or demand, general or special,

                                      -80-
<PAGE>

provisionally credited or finally credited, or otherwise) now or hereafter
maintained by the Borrower or such other Loan Party for its own account (but not
including funds held in custodian or trust accounts) with such Bank or
participant or such branch, Subsidiary or Affiliate. Such right shall exist
whether or not any Bank or the Agent shall have made any demand under this
Agreement or any other Loan Document, whether or not such debt owing to or funds
held for the account of the Borrower or such other Loan Party is or are matured
or unmatured and regardless of the existence or adequacy of any Collateral,
Guaranty or any other security, right or remedy available to any Bank or the
Agent; and

                9.2.4   SUITS, ACTIONS, PROCEEDINGS.

                If an Event of Default shall occur and be continuing, and
whether or not the Agent shall have accelerated the maturity of Loans pursuant
to any of the foregoing provisions of this Section 9.2, the Agent or any Bank,
if owed any amount with respect to the Loans, may proceed to protect and enforce
its rights by suit in equity, action at law and/or other appropriate proceeding,
whether for the specific performance of any covenant or agreement contained in
this Agreement or the other Loan Documents, including as permitted by applicable
Law the obtaining of the EX PARTE appointment of a receiver, and, if such amount
shall have become due, by declaration or otherwise, proceed to enforce the
payment thereof or any other legal or equitable right of the Agent or such Bank;
and

                9.2.5   APPLICATION OF PROCEEDS.

                From and after the date on which the Agent has taken any action
pursuant to this Section 9.2 and until all Obligations, other than contingent
Obligations for indemnification, of the Loan Parties have been paid in full, any
and all proceeds received by the Agent from any sale or other disposition of the
Collateral, or any part thereof, or the exercise of any other remedy by the
Agent, shall be applied as follows:

                        (i)     first, to reimburse the Agent and the Banks for
out-of-pocket costs, expenses and disbursements, including reasonable attorneys'
and paralegals' fees and legal expenses, incurred by the Agent or the Banks in
connection with realizing on the Collateral or collection of any Obligations of
any of the Loan Parties under any of the Loan Documents, including advances made
by the Banks or any one of them or the Agent for the reasonable maintenance,
preservation, protection or enforcement of, or realization upon, the Collateral,
including advances for taxes, insurance, repairs and the like and reasonable
expenses incurred to sell or otherwise realize on, or prepare for sale or other
realization on, any of the Collateral;

                        (ii)    second, to the repayment of all Indebtedness
then due and unpaid of the Loan Parties to the Banks incurred under this
Agreement or any of the other Loan Documents, whether of principal, interest,
fees, expenses or otherwise, PRO RATA based upon their respective shares, if
any, of the Indebtedness with respect to which such payment was received; and

                                      -81-
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                        (iii)   the balance, if any, as required by Law.

                9.2.6   OTHER RIGHTS AND REMEDIES.

                In addition to all of the rights and remedies contained in this
Agreement or in any of the other Loan Documents (including the Mortgage), the
Agent shall have all of the rights and remedies of a secured party under the
Uniform Commercial Code or other applicable Law, all of which rights and
remedies shall be cumulative and non-exclusive, to the extent permitted by Law.
The Agent may, and upon the request of the Required Banks shall, exercise all
post-default rights granted to the Agent and the Banks under the Loan Documents
or applicable Law.

                9.3     NOTICE OF SALE.

                Any notice required to be given by the Agent of a sale, lease,
or other disposition of the Collateral or any other intended action by the
Agent, if given ten (10) days prior to such proposed action, shall constitute
commercially reasonable and fair notice thereof to the Borrower.

                                  10. THE AGENT

        In addition to the other provisions set forth in this Agreement, the
Agent's rights and obligations are described in and governed by the provisions
of EXHIBIT 10.

                                11. MISCELLANEOUS

        11.1    MODIFICATIONS, AMENDMENTS OR WAIVERS.

        With the written consent of the Required Banks, the Agent, acting on
behalf of all the Banks, and the Borrower, on behalf of the Loan Parties, may
from time to time enter into written agreements amending or changing any
provision of this Agreement or any other Loan Document or the rights of the
Banks or the Loan Parties hereunder or thereunder, or may grant written waivers
or consents to a departure from the due performance of the Obligations of the
Loan Parties hereunder or thereunder. Any such agreement, waiver or consent made
with such written consent shall be effective to bind all the Banks and the Loan
Parties; PROVIDED, that, without the written consent of all the Banks, no such
agreement, waiver or consent may be made which will:

                11.1.1  INCREASE OF COMMITMENT; EXTENSION OR EXPIRATION DATE.

                Increase the amount of the Revolving Credit Commitment or Term
Loan Commitment of any Bank hereunder or extend the Expiration Date;

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                11.1.2  EXTENSION OF PAYMENT; REDUCTION OF PRINCIPAL INTEREST OR
                        FEES; MODIFICATION OF TERMS OF PAYMENT.

                Whether or not any Loans are outstanding, extend the time for
payment of principal or interest of any Loan (excluding the due date of any
mandatory prepayment of a Loan or any mandatory Commitment reduction in
connection with such a mandatory prepayment hereunder except for mandatory
reductions of the Commitments on the Expiration Date), the Commitment Fee or any
other fee payable to any Bank, or reduce the principal amount of or the rate of
interest borne by any Loan or reduce the Commitment Fee or any other fee payable
to any Bank, or otherwise affect the terms of payment of the principal of or
interest of any Loan, the Commitment Fee or any other fee payable to any Bank;
PROVIDED, that, notwithstanding the foregoing, only the Supermajority Banks of
the Affected Class shall be required for any amendment, waiver or consent which
extends the due date of any regularly scheduled payment of any Term Loan under
Section 3.6 or reduces the amount thereof (other than the final payment of the
Term Loans A or the Term Loans B which shall require the consent of all Banks);

                11.1.3  RELEASE OF COLLATERAL OR GUARANTOR.

                Except for sales of assets permitted by Section 8.2.7
[Disposition of Assets or Subsidiaries], release any Collateral consisting of
capital stock or other ownership interests of any Loan Party or its Subsidiary,
any Guarantor from its Obligations under the Guaranty Agreement or any other
security for any of the Loan Parties' Obligations. Without the written consent
of all the Banks, no agreement, waiver or consent which releases substantially
all of the assets of any Loan Party shall be effective; or

                11.1.4  MISCELLANEOUS

Amend Section 5.2 [Pro Rata Treatment of Banks], Paragraphs 6 or 13 of EXHIBIT
10 [Agent Provisions] or this Section 11.1, alter any provision regarding the
pro rata treatment of the Banks, change the definition of Required Banks or
Supermajority Banks of the Affected Class, or change any requirement providing
for the Banks or the Required Banks to authorize the taking of any action
hereunder; PROVIDED, further, that no agreement, waiver or consent which would
modify the interests, rights or obligations of the Agent in its capacity as
Agent or as the issuer of Letters of Credit shall be effective without the
written consent of the Agent.

        11.2    NO IMPLIED WAIVERS; CUMULATIVE REMEDIES; WRITING REQUIRED.

        No course of dealing and no delay or failure of the Agent or any Bank in
exercising any right, power, remedy or privilege under this Agreement or any
other Loan Document shall affect any other or future exercise thereof or operate
as a waiver thereof, nor shall any single or partial exercise thereof or any
abandonment or discontinuance of steps to enforce such a right, power, remedy or
privilege preclude any further exercise thereof or of any other right, power,
remedy or privilege. The rights and remedies of the Agent and the Banks under
this Agreement and any other Loan Documents are cumulative and not exclusive of
any

                                      -83-
<PAGE>

rights or remedies which they would otherwise have. Any waiver, permit, consent
or approval of any kind or character on the part of any Bank of any breach or
default under this Agreement or any such waiver of any provision or condition of
this Agreement must be in writing and shall be effective only to the extent
specifically set forth in such writing.

        11.3    REIMBURSEMENT AND INDEMNIFICATION OF BANKS BY THE BORROWER;
                TAXES.

                The Borrower agrees unconditionally upon demand to pay or
reimburse to each Bank (other than the Agent, as to which the Borrower's
Obligations are set forth in Paragraph 5 of EXHIBIT 10 [Reimbursement of Agent
By Borrower, Etc.]) and to save such Bank harmless against (i) liability for the
payment of all reasonable out-of-pocket costs, expenses and disbursements
(including fees and expenses of counsel (excluding allocated costs of staff
counsel) for each Bank), incurred by such Bank (a) in connection with the
enforcement of this Agreement or any other Loan Document, or collection of
amounts due hereunder or thereunder or the proof and allowability of any claim
arising under this Agreement or any other Loan Document, whether in bankruptcy
or receivership proceedings or otherwise, and (b) in any workout or
restructuring or in connection with the protection, preservation, exercise or
enforcement of any of the terms hereof or of any rights hereunder or under any
other Loan Document or in connection with any foreclosure, collection or
bankruptcy proceedings, or (ii) all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements of any
kind or nature whatsoever which may be imposed on, incurred by or asserted
against such Bank, in its capacity as such, in any way relating to or arising
out of this Agreement or any other Loan Documents or any action taken or omitted
by such Bank hereunder or thereunder, PROVIDED that the Borrower shall not be
liable for any portion of such liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements (A) if
the same results from such Bank's gross negligence or willful misconduct, or (B)
if the Borrower was not given notice of the subject claim and the opportunity to
participate in the defense thereof, at its expense (except that the Borrower
shall remain liable to the extent such failure to give notice does not result in
a loss to the Borrower), or (C) if the same results from a compromise or
settlement agreement entered into without the consent of the Borrower, which
shall not be unreasonably withheld. The Banks will attempt to minimize the fees
and expenses of legal counsel for the Banks which are subject to reimbursement
by the Borrower hereunder by considering the usage of one law firm to represent
the Banks and the Agent if appropriate under the circumstances. The Borrower
agrees unconditionally to pay all stamp, document, transfer, recording or filing
taxes or fees and similar impositions now or hereafter determined by the Agent
or any Bank to be payable in connection with this Agreement or any other Loan
Document, and the Borrower agrees unconditionally to save the Agent and the
Banks harmless from and against any and all present or future claims,
liabilities or losses with respect to or resulting from any omission to pay or
delay in paying any such taxes, fees or impositions.

                                      -84-
<PAGE>

        11.4    HOLIDAYS.

        Whenever payment of a Loan to be made or taken hereunder shall be due on
a day which is not a Business Day such payment shall be due on the next Business
Day and such extension of time shall be included in computing interest and fees,
except that the Loans shall be due on the Business Day preceding the Expiration
Date if the Expiration Date is not a Business Day. Whenever any payment or
action to be made or taken hereunder (other than payment of the Loans) shall be
stated to be due on a day which is not a Business Day, such payment or action
shall be made or taken on the next following Business Day (except as provided in
Section 4.2 [Interest Periods] with respect to Euro-Rate Interest Periods under
the Euro-Rate Option), and such extension of time shall not be included in
computing interest or fees, if any, in connection with such payment or action.

        11.5    FUNDING BY BRANCH, SUBSIDIARY OR AFFILIATE.

                11.5.1  NOTIONAL FUNDING.

                Each Bank shall have the right from time to time, without notice
to the Borrower, to deem any branch, Subsidiary or Affiliate (which for the
purposes of this Section 11.5 shall mean any corporation or association which is
directly or indirectly controlled by or is under direct or indirect common
control with any corporation or association which directly or indirectly
controls such Bank) of such Bank to have made, maintained or funded any Loan to
which the Euro-Rate Option applies at any time, PROVIDED that immediately
following (on the assumption that a payment were then due from the Borrower to
such other office), and as a result of such change, the Borrower would not be
under any greater financial obligation pursuant to Section 5.6 [Additional
Compensation in Certain Circumstances] than it would have been in the absence of
such change. Notional funding offices may be selected by each Bank without
regard to such Bank's actual methods of making, maintaining or funding the Loans
or any sources of funding actually used by or available to such Bank.

                11.5.2  ACTUAL FUNDING.

                Each Bank shall have the right from time to time to make or
maintain any Loan by arranging for a branch, Subsidiary or Affiliate of such
Bank to make or maintain such Loan subject to the last sentence of this Section
11.5.2. If any Bank causes a branch, Subsidiary or Affiliate to make or maintain
any part of the Loans hereunder, all terms and conditions of this Agreement
shall, except where the context clearly requires otherwise, be applicable to
such part of the Loans to the same extent as if such Loans were made or
maintained by such Bank, but in no event shall any Bank's use of such a branch,
Subsidiary or Affiliate to make or maintain any part of the Loans hereunder
cause such Bank or such branch, Subsidiary or Affiliate to incur any cost or
expenses payable by the Borrower hereunder or require the Borrower to pay any
other compensation to any Bank (including any expenses incurred or payable
pursuant to Section 5.6 [Additional Compensation in Certain Circumstances])
which would otherwise not be incurred.

                                      -85-
<PAGE>

        11.6    NOTICES.

        Any notice, request, demand, direction or other communication (for
purposes of this Section 11.6 only, a "NOTICE") to be given to or made upon any
party hereto under any provision of this Agreement shall be given or made by
telephone or in writing (which includes by means of electronic transmission
(i.e., "e-mail") or facsimile transmission or by setting forth such Notice on a
site on the World Wide Web (a "WEBSITE POSTING") if Notice of such Website
Posting (including the information necessary to access such site) has previously
been delivered to the applicable parties hereto by another means set forth in
this Section 11.6) in accordance with this Section 11.6. Any such Notice must be
delivered to the applicable parties hereto at the addresses and numbers set
forth under their respective names on SCHEDULE 1.1(B) hereof or in accordance
with any subsequent unrevoked Notice from any such party that is given in
accordance with this Section 11.6. Any Notice shall be effective:

                (a)     In the case of hand-delivery, when delivered;

                (b)     If given by mail, four days after such Notice is
        deposited with the United States Postal Service, with first-class
        postage prepaid, return receipt requested;

                (c)     In the case of a telephonic Notice, when a party is
        contacted by telephone, if delivery of such telephonic Notice is
        confirmed no later than the next Business Day by hand delivery, a
        facsimile or electronic transmission, a Website Posting or an overnight
        courier delivery of a confirmatory Notice (received at or before noon on
        such next Business Day);

                (d)     In the case of a facsimile transmission, when sent to
        the applicable party's facsimile machine's telephone number, if the
        party sending such Notice receives confirmation of the delivery thereof
        from its own facsimile machine;

                (e)     In the case of electronic transmission, when actually
        received;

                (f)     In the case of a Website Posting, upon delivery of a
        Notice of such posting (including the information necessary to access
        such site) by another means set forth in this Section 11.6; and

                (g)     If given by any other means (including by overnight
        courier), when actually received.

Any Bank giving a Notice to a Loan Party shall concurrently send a copy thereof
to the Agent, and the Agent shall promptly notify the other Banks of its receipt
of such Notice.

                                      -86-
<PAGE>

        11.7    SEVERABILITY.

        The provisions of this Agreement are intended to be severable. If any
provision of this Agreement shall be held invalid or unenforceable in whole or
in part in any jurisdiction, such provision shall, as to such jurisdiction, be
ineffective to the extent of such invalidity or unenforceability without in any
manner affecting the validity or enforceability thereof in any other
jurisdiction or the remaining provisions hereof in any jurisdiction.

        11.8    GOVERNING LAW.

        Each Letter of Credit, Section 2.8 [Letter of Credit Subfacility] and
EXHIBIT 2.8 shall be subject to the Uniform Customs and Practice for Documentary
Credits (1993 Revision), International Chamber of Commerce Publication No. 500,
as the same may be revised or amended from time to time, and to the extent not
inconsistent therewith, the internal laws of the Commonwealth of Pennsylvania
without regard to its conflict of laws principles and the balance of this
Agreement shall be deemed to be a contract under the Laws of the Commonwealth of
Pennsylvania and for all purposes shall be governed by and construed and
enforced in accordance with the internal laws of the Commonwealth of
Pennsylvania without regard to its conflict of laws principles.

        11.9    PRIOR UNDERSTANDING.

        This Agreement and the other Loan Documents supersede all prior
understandings and agreements (excluding the Agent's Letter, as described in
EXHIBIT 10), whether written or oral, between the parties hereto and thereto
relating to the transactions provided for herein and therein, including any
prior confidentiality agreements and commitments.

        11.10   DURATION; SURVIVAL.

        All representations and warranties of the Loan Parties contained herein
or made in connection herewith shall survive the making of Loans and issuance of
Letters of Credit and shall not be waived by the execution and delivery of this
Agreement, any investigation by the Agent or the Banks, the making of Loans,
issuance of Letters of Credit, or payment in full of the Loans. All covenants
and agreements of the Loan Parties contained in Sections 8.1 [Affirmative
Covenants], 8.2 [Negative Covenants] and 8.3 [Reporting Requirements] and
EXHIBIT 8.3 herein shall continue in full force and effect from and after the
date hereof so long as the Borrower may borrow or request Letters of Credit
hereunder and until termination of the Commitments and payment in full of the
Loans and expiration or termination of all Letters of Credit. All covenants and
agreements of the Borrower contained herein relating to the payment of
principal, interest, premiums, additional compensation or expenses and
indemnification, including those set forth in the Notes, Section 5 [Payments],
Paragraphs 5 and 7 of EXHIBIT 10 [Agent Provisions] and 11.3 [Reimbursement of
Banks by Borrower; Etc.], shall survive payment in full of the Loans, expiration
or termination of the Letters of Credit and termination of the Commitments.

                                      -87-
<PAGE>

        11.11   SUCCESSORS AND ASSIGNS.

                        (i)     This Agreement shall be binding upon and shall
inure to the benefit of the Banks, the Agent, the Loan Parties and their
respective successors and assigns, except that none of the Loan Parties may
assign or transfer any of its rights and Obligations hereunder or any interest
herein. Each Bank may, at its own cost, make assignments of or sell
participations in all or any part of its Commitments and the Loans made by it to
one or more banks or other entities, subject to the consent of the Borrower and
the Agent with respect to any assignee, such consent not to be unreasonably
withheld, PROVIDED that (1) no consent of the Borrower shall be required (A) if
an Event of Default exists and is continuing, or (B) in the case of an
assignment by a Bank to an Affiliate of such Bank, and (2) any assignment by a
Bank to a Person other than an Affiliate of such Bank may not be in amounts less
than the lesser of $2,500,000 or the amount of the assigning Bank's Commitment.
Prior to the occurrence of an Event of Default, if PNC Bank makes an assignment
which causes its Commitments to be less than $35,000,000, it shall, at the
request of the Borrower, resign its position as Agent. In the case of an
assignment, upon receipt by the Agent of the Assignment and Assumption
Agreement, the assignee shall have, to the extent of such assignment (unless
otherwise provided therein), the same rights, benefits and obligations as it
would have if it had been a signatory Bank hereunder, the Commitments shall be
adjusted accordingly, and upon surrender of any Note subject to such assignment,
the Borrower shall execute and deliver a new Note to the assignee in an amount
equal to the amount of the Revolving Credit Commitment or Term Loan assumed by
it and a new Revolving Credit Note or Term Note to the assigning Bank in an
amount equal to the Revolving Credit Commitment or Term Loan retained by it
hereunder. Any Bank which assigns any or all of its Commitment or Loans to a
Person other than an Affiliate of such Bank shall pay to the Agent a service fee
in the amount of $3,500 for each assignment. In the case of a participation, the
participant shall only have the rights specified in Section 9.2.3 [Set-off] (the
participant's rights against such Bank in respect of such participation to be
those set forth in the agreement executed by such Bank in favor of the
participant relating thereto and not to include any voting rights except with
respect to changes of the type referenced in Sections 11.1.1 [Increase of
Commitment, Etc.], 11.1.2 [Extension of Payment, Etc.], or 11.1.3 [Release of
Collateral or Guarantor]), all of such Bank's obligations under this Agreement
or any other Loan Document shall remain unchanged, and all amounts payable by
any Loan Party hereunder or thereunder shall be determined as if such Bank had
not sold such participation.

                        (ii)    Any assignee or participant which is not
incorporated under the Laws of the United States of America or a state thereof
shall deliver to the Borrower and the Agent the form of certificate described in
Section 11.17 [Tax Withholding Clause] relating to federal income tax
withholding. Each Bank may furnish any publicly available information concerning
any Loan Party or its Subsidiaries and any other information concerning any Loan
Party or its Subsidiaries in the possession of such Bank from time to time to
assignees and participants (including prospective assignees or participants),
PROVIDED that such assignees and participants agree to be bound by the
provisions of Section 11.12 [Confidentiality].

                                      -88-
<PAGE>

                        (iii)   Notwithstanding any other provision in this
Agreement, any Bank may at any time pledge or grant a security interest in all
or any portion of its rights under this Agreement, its Note and the other Loan
Documents to any Federal Reserve Bank in accordance with Regulation A of the FRB
or U.S. Treasury Regulation 31 CFR Section 203.14 without notice to or consent
of the Borrower or the Agent. No such pledge or grant of a security interest
shall release the Transferor Bank of its obligations hereunder or under any
other Loan Document.

        11.12   CONFIDENTIALITY.

                11.12.1 GENERAL.

                The Agent and the Banks each agree to keep confidential all
information obtained from any Loan Party or its Subsidiaries which is nonpublic
and confidential or proprietary in nature (including any information the
Borrower specifically designates as confidential), except as provided below, and
to use such information only in connection with their respective capacities
under this Agreement and for the purposes contemplated hereby. The Agent and the
Banks shall be permitted to disclose such information (i) to outside legal
counsel, accountants and other professional advisors who need to know such
information in connection with the administration and enforcement of this
Agreement, subject to agreement of such Persons to maintain the confidentiality,
(ii) to assignees and participants as contemplated by Section 11.11, (iii) to
the extent requested by any bank regulatory authority or, with notice to the
Borrower, as otherwise required by applicable Law or by any subpoena or similar
legal process, or in connection with any investigation or proceeding arising out
of the transactions contemplated by this Agreement, (iv) if it becomes publicly
available other than as a result of a breach of this Agreement or becomes
available from a source not known to be subject to confidentiality restrictions,
or (v) if the Borrower shall have consented to such disclosure.

                11.12.2 SHARING INFORMATION WITH AFFILIATES OF THE BANKS.

                Each Loan Party acknowledges that from time to time financial
advisory, investment banking and other services may be offered or provided to
the Borrower or one or more of its Affiliates (in connection with this Agreement
or otherwise) by any Bank or by one or more Subsidiaries or Affiliates of such
Bank and each of the Loan Parties hereby authorizes each Bank to share any
information delivered to such Bank by such Loan Party and its Subsidiaries
pursuant to this Agreement, or in connection with the decision of such Bank to
enter into this Agreement, to any such Subsidiary or Affiliate of such Bank, it
being understood that any such Subsidiary or Affiliate of any Bank receiving
such information shall be bound by the provisions of Section 11.12.1 as if it
were a Bank hereunder. Such authorization shall survive the repayment of the
Loans and other Obligations and the termination of the Commitments.

                                      -89-
<PAGE>

        11.13   COUNTERPARTS.

        This Agreement may be executed by different parties hereto on any number
of separate counterparts, each of which, when so executed and delivered, shall
be an original, and all such counterparts shall together constitute one and the
same instrument.

        11.14   AGENT'S OR BANK'S CONSENT.

        Whenever the Agent's or any Bank's consent is required to be obtained
under this Agreement or any of the other Loan Documents as a condition to any
action, inaction, condition or event, the Agent and each Bank shall be
authorized to give or withhold such consent in its sole and absolute discretion
and to condition its consent upon the giving of additional collateral, the
payment of money or any other matter.

        11.15   EXCEPTIONS.

        The representations, warranties and covenants contained herein shall be
independent of each other, and no exception to any representation, warranty or
covenant shall be deemed to be an exception to any other representation,
warranty or covenant contained herein unless expressly provided, nor shall any
such exceptions be deemed to permit any action or omission that would be in
contravention of applicable Law.

        11.16   CONSENT TO FORUM; WAIVER OF JURY TRIAL.

        EACH LOAN PARTY HEREBY IRREVOCABLY CONSENTS TO THE NONEXCLUSIVE
JURISDICTION OF THE COURT OF COMMON PLEAS OF ALLEGHENY COUNTY AND THE UNITED
STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF PENNSYLVANIA, AND WAIVES
PERSONAL SERVICE OF ANY AND ALL PROCESS UPON IT AND CONSENTS THAT ALL SUCH
SERVICE OF PROCESS BE MADE BY CERTIFIED OR REGISTERED MAIL DIRECTED TO SUCH LOAN
PARTY AT THE ADDRESSES PROVIDED FOR IN SECTION 11.6 AND SERVICE SO MADE SHALL BE
DEEMED TO BE COMPLETED UPON ACTUAL RECEIPT THEREOF. EACH LOAN PARTY WAIVES ANY
OBJECTION TO JURISDICTION AND VENUE OF ANY ACTION INSTITUTED AGAINST IT AS
PROVIDED HEREIN AND AGREES NOT TO ASSERT ANY DEFENSE BASED ON LACK OF
JURISDICTION OR VENUE. EACH LOAN PARTY, THE AGENT AND THE BANKS HEREBY WAIVE
TRIAL BY JURY IN ANY ACTION, SUIT, PROCEEDING OR COUNTERCLAIM OF ANY KIND
ARISING OUT OF OR RELATED TO THIS AGREEMENT, ANY OTHER LOAN DOCUMENT OR THE
COLLATERAL TO THE FULL EXTENT PERMITTED BY LAW.

                                      -90-
<PAGE>

        11.17   TAX WITHHOLDING CLAUSE.

        Each Bank or assignee or participant of a Bank that is not incorporated
under the Laws of the United States of America or a state thereof agrees that it
will deliver to each of the Borrower and the Agent two (2) duly completed copies
of the following: (i) Internal Revenue Service Form W-9, 4224 or 1001, or other
applicable form prescribed by the Internal Revenue Service, certifying that such
Bank, assignee or participant is entitled to receive payments under this
Agreement and the other Loan Documents without deduction or withholding of any
United States federal income taxes, or is subject to such tax at a reduced rate
under an applicable tax treaty, or (ii) Internal Revenue Service Form W-8 or
other applicable form or a certificate of such Bank, assignee or participant
indicating that no such exemption or reduced rate is allowable with respect to
such payments. Each Bank, assignee or participant required to deliver to the
Borrower and the Agent a form or certificate pursuant to the preceding sentence
shall deliver such form or certificate as follows: (A) each Bank which is a
party hereto on the Closing Date shall deliver such form or certificate at least
five (5) Business Days prior to the first date on which any interest or fees are
payable by the Borrower hereunder for the account of such Bank; (B) each
assignee or participant shall deliver such form or certificate at least five (5)
Business Days before the effective date of such assignment or participation
(unless the Agent in its sole discretion shall permit such assignee or
participant to deliver such form or certificate less than five (5) Business Days
before such date in which case it shall be due on the date specified by the
Agent). Each Bank, assignee or participant which so delivers a Form W-8, W-9,
4224 or 1001 further undertakes to deliver to each of the Borrower and the Agent
two (2) additional copies of such form (or a successor form) on or before the
date that such form expires or becomes obsolete or after the occurrence of any
event requiring a change in the most recent form so delivered by it, and such
amendments thereto or extensions or renewals thereof as may be reasonably
requested by the Borrower or the Agent, either certifying that such Bank,
assignee or participant is entitled to receive payments under this Agreement and
the other Loan Documents without deduction or withholding of any United States
federal income taxes or is subject to such tax at a reduced rate under an
applicable tax treaty or stating that no such exemption or reduced rate is
allowable. The Agent shall be entitled to withhold United States federal income
taxes at the full withholding rate unless the Bank, assignee or participant
establishes an exemption or that it is subject to a reduced rate as established
pursuant to the above provisions.

        11.18   JOINDER OF GUARANTORS.

        Any Subsidiary of the Borrower which is required to join this Agreement
as a Guarantor pursuant to Section 8.2.9 [Subsidiaries, Partnerships and Joint
Ventures] shall execute and deliver to the Agent (i) a Guarantor Joinder in
substantially the form attached hereto as EXHIBIT 1.1(G)(1) pursuant to which it
shall join as a Guarantor each of the documents to which the Guarantors are
parties; (ii) documents in the forms described in Section 7.1 [Loans and Letters
of Credit] modified as appropriate to relate to such Subsidiary; and (iii)
documents necessary to grant and perfect Prior Security Interests to the Agent
for the benefit of the Banks in all Collateral held by such Subsidiary. In the
case of a Permitted Acquisition, the Person or

                                      -91-
<PAGE>

Persons acquired shall deliver such Guarantor Joinder upon consummation of the
Permitted Acquisition. In all other cases, the Loan Parties shall deliver such
Guarantor Joinder and related documents to the Agent within five (5) Business
Days after the date of the filing of such Subsidiary's articles of incorporation
if the Subsidiary is a corporation, the date of the filing of its certificate of
limited partnership if it is a limited partnership or the date of its
organization if it is an entity other than a limited partnership or corporation.

                            [SIGNATURE PAGES FOLLOW]

                                      -92-
<PAGE>

        [SIGNATURE PAGE 1 OF 11 TO AMENDED AND RESTATED CREDIT AGREEMENT]

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

                                  LINC.NET, INC.

                                  By:
                                     ----------------------------------

                                  Title:
                                        -------------------------------

                                  LINC.NET ACQUISITION CORP.

                                  By:
                                     ----------------------------------

                                  Title:
                                        -------------------------------

                                  CAPITAL LAND SERVICES INC.

                                  By:
                                     ----------------------------------

                                  Title:
                                        -------------------------------

                                  LINC.NET ACQUISITION CORP. II

                                  By:
                                     ----------------------------------

                                  Title:
                                        -------------------------------

<PAGE>

        [SIGNATURE PAGE 2 OF 11 TO AMENDED AND RESTATED CREDIT AGREEMENT]

                                  MULLER & PRIBYL UTILITIES, INC.

                                  By:
                                     ----------------------------------

                                  Title:
                                        -------------------------------

                                  M & P UTILITIES, INC.

                                  By:
                                     ----------------------------------

                                  Title:
                                        -------------------------------

                                  C & B ASSOCIATES, LTD. By Linc.net
                                  Acquisition Corp. II, its general partner

                                  By:
                                     ----------------------------------

                                  Title:
                                        -------------------------------

                                  C & B ASSOCIATES II, LTD. By Linc.net
                                  Acquisition Corp. II, its general partner

                                  By:
                                     ----------------------------------

                                  Title:
                                        -------------------------------

                                  NORTH SHORE CABLE CONTRACTORS, INC.

                                  By:
                                     ----------------------------------

                                  Title:
                                        -------------------------------

<PAGE>

        [SIGNATURE PAGE 3 OF 11 TO AMENDED AND RESTATED CREDIT AGREEMENT]

                                  TELPRO TECHNOLOGIES, INC.

                                  By:
                                     ----------------------------------

                                  Title:
                                        -------------------------------

                                  GEORGE M. CONSTRUCTION, INC.

                                  By:
                                     ----------------------------------

                                  Title:
                                        -------------------------------

                                  UTILITY CONSULTANTS, INC.

                                  By:
                                     ----------------------------------

                                  Title:
                                        -------------------------------

                                  COMMUNICOR TELECOMMUNICATIONS, INC.

                                  By:
                                     ----------------------------------

                                  Title:
                                        -------------------------------

                                  COMMUNICATIONS CONSTRUCTION COMPANY

                                  By:
                                     ----------------------------------

                                  Title:
                                        -------------------------------

                                  COMMUNICOR EQUIPMENT COMPANY

                                  By:
                                     ----------------------------------

                                  Title:
                                        -------------------------------

<PAGE>

        [SIGNATURE PAGE 4 OF 11 TO AMENDED AND RESTATED CREDIT AGREEMENT]

                                  PNC BANK, NATIONAL ASSOCIATION,
                                  individually and as Agent

                                  By:
                                     ----------------------------------

                                  Title:
                                        -------------------------------

<PAGE>

        [SIGNATURE PAGE 5 OF 11 TO AMENDED AND RESTATED CREDIT AGREEMENT]

                                  GENERAL ELECTRIC CAPITAL
                                  CORPORATION, individually and as Syndication
                                  Agent

                                  By:
                                     ----------------------------------

                                  Title:
                                        -------------------------------

<PAGE>

        [SIGNATURE PAGE 6 OF 11 TO AMENDED AND RESTATED CREDIT AGREEMENT]

                                  HELLER FINANCIAL, INC.

                                  By:
                                     ----------------------------------

                                  Title:
                                        -------------------------------

<PAGE>

        [SIGNATURE PAGE 7 OF 11 TO AMENDED AND RESTATED CREDIT AGREEMENT]

                                  KEY CORPORATE CAPITAL INC.

                                  By:
                                     ----------------------------------

                                  Title:
                                        -------------------------------

<PAGE>

        [SIGNATURE PAGE 8 OF 11 TO AMENDED AND RESTATED CREDIT AGREEMENT]

                                  UNION PLANTERS BANK

                                  By:
                                     ----------------------------------

                                  Title:
                                        -------------------------------

<PAGE>

        [SIGNATURE PAGE 9 OF 11 TO AMENDED AND RESTATED CREDIT AGREEMENT]

                                  ANTARES CAPITAL CORPORATION

                                  By:
                                     ----------------------------------

                                  Title:
                                        -------------------------------

<PAGE>

       [SIGNATURE PAGE 10 OF 11 TO AMENDED AND RESTATED CREDIT AGREEMENT]

                                  CHASE BANK OF TEXAS, NATIONAL
                                  ASSOCIATION, AS TRUSTEE OF THE
                                  ANTARES FUNDING TRUST created under the
                                  Trust Agreement dated as of November 30, 1999

                                  By:
                                     ----------------------------------

                                  Title:
                                        -------------------------------

<PAGE>

       [SIGNATURE PAGE 11 OF 11 TO AMENDED AND RESTATED CREDIT AGREEMENT]

                                  FIRST UNION NATIONAL BANK

                                  By:
                                     ----------------------------------

                                  Title:
                                        -------------------------------

<PAGE>

                                 SCHEDULE 1.1(B)

                 COMMITMENTS OF BANKS AND ADDRESSES FOR NOTICES

                                   Page 1 of 3

        PART 1 - COMMITMENTS OF BANKS AND ADDRESSES FOR NOTICES TO BANKS

<TABLE>
<CAPTION>
                                 AMOUNT OF                AMOUNT OF              AMOUNT OF
                                COMMITMENT             COMMITMENT FOR           COMMITMENT
                               FOR REVOLVING            TERM LOANS A             FOR TERM             RATABLE SHARE
      BANK                     CREDIT LOANS            --------------             LOANS B             -------------
      ----                     ------------                                       -------
<S>                           <C>                      <C>                      <C>                   <C>
Name:

PNC Bank, National            $13,901,601.83           $46,338,672.77           $46,338,672.77          46.3387%
Association

Address:
249 Fifth Avenue
Pittsburgh, PA  15222
Attention: James A. Fink
Telephone: (412) 762-8746
Telecopy: (412) 705-0984

James.fink@pncbank.com

Name:
Heller Financial, Inc.         $2,608,695.65            $8,695,652.17            $8,695,652.17           8.6957%

Address:
500 West Monroe Street
Chicago, IL  60661
Attention: Jackie Brown
Telephone: (312) 441-6930
Telecopy: same as above
Jbrown@hellerfin.com
</TABLE>

<PAGE>

                                 SCHEDULE 1.1(B)

                 COMMITMENTS OF BANKS AND ADDRESSES FOR NOTICES

                                   Page 2 of 3

<TABLE>
<S>                           <C>                      <C>                      <C>                     <C>
Name:
General Electric Capital       $6,315,789.47           $21,052,631.58           $21,052,631.58          21.0526%
Corporation

Address:
335 Madison Avenue
12th Floor
New York, NY  10017
Attention: Christian DeAngelis
Telephone: (212) 370-8091
Telecopy: (212) 983-8767
christian.deangelis@gecapital.com

Name:
Antares Capital Corporation    $1,956,521.74            $6,521,739.13              $521,739.13

Address:
311 S. Wacker Drive,
Suite 2725
Chicago, IL  60606
Attention:  Mike King
Telephone: (312) 697-3949
Telecopy: (312) 697-3998
Mking@antareslev.com

Name:
Antares Funding Trust, L.P.              -0-                      -0-            $6,000,000.00

Address:
c/o Chase Bank of Texas, N.A.
600 Travis Street, 50th Floor
Houston, TX  77002
Attention: Edmund Kwan
Telephone: (713) 216-3954
Telecopy: (713) 216-3571
</TABLE>

<PAGE>

                                 SCHEDULE 1.1(B)

                 COMMITMENTS OF BANKS AND ADDRESSES FOR NOTICES

                                   Page 3 of 3

<TABLE>
<S>                            <C>                      <C>                      <C>                     <C>
Name:
First Union National Bank      $1,956,521.74            $6,521,739.13            $6,521,739.13           6.5217%

Address:
NC0760
201 South College Street
Charlotte, NC  28288-0760
Attention: Douglas A. Nickel
Telephone: (704) 383-4003
Telecopy: (704) 715-1117

Name:
Key Corporate Capital Inc.     $1,956,521.74            $6,521,739.13            $6,521,739.13           6.5217%

Address:
66 South Pearl Street,
6th Floor
Albany, NY  12207
Attention: Jay McKenney
Telephone: (518) 487-4167
Telecopy: (518) 488-5199
Jay_r_mckenney@keybank.com

Name:
Union Planters Bank            $1,304,347.83            $4,347,826.09            $4,347,826.09           4.3478%

Address:
1489 West Palmetto Park Rd.
Boca Raton, FL  33486
Attention:  Tom Thureson
Telephone: (561) 361-5623
Telecopy: (561) 361-5612
Thomas.thureson@unionplanters-fla.com

         Total                $30,000,000.00          $100,000,000.00          $100,000,000.00         100.0000%
                              --------------          ---------------          ---------------         ---------
</TABLE>

<PAGE>

                                   EXHIBIT 2.8

                           LETTER OF CREDIT PROVISIONS

1.   ISSUANCE OF LETTERS OF CREDIT.

     Borrower may request the issuance of a letter of credit (each a "LETTER OF
CREDIT") on behalf of itself or another Loan Party by delivering to the Agent a
completed application and agreement for letters of credit in such form as the
Agent may specify from time to time by no later than 11:00 a.m., Pittsburgh
time, at least five (5) Business Days, or such shorter period as may be agreed
to by the Agent, in advance of the proposed date of issuance. Each Letter of
Credit shall be either a Standby Letter of Credit or a Commercial Letter of
Credit. Subject to the terms and conditions hereof and in reliance on the
agreements of the other Banks set forth in this EXHIBIT 2.8, the Agent will
issue a Letter of Credit provided that each Letter of Credit shall (A) have a
maximum maturity of twelve (12) months from the date of issuance, and (B) in no
event expire later than ten (10) Business Days prior to the Expiration Date and
providing that in no event shall (i) the Letters of Credit Outstanding exceed,
at any one time, $10,000,000 or (ii) the Revolving Facility Usage exceed, at any
one time, the lesser of the Borrowing Base or the Revolving Credit Commitments,
as such Commitments are available based upon consummation of the acquisition of
the Founding Companies as provided in Section 2.1.

2.   LETTER OF CREDIT FEES.

     The Borrower shall pay (i) to the Agent for the ratable account of the
Banks a fee (the "LETTER OF CREDIT FEE") equal to the Applicable Margin for the
Revolving Credit Euro-Rate Option, and (ii) to the Agent for its own account a
fronting fee equal to 1/4% per annum (computed on the basis of a year of 360
days and actual days elapsed), which fees shall be computed on the daily average
Letters of Credit Outstanding and shall be payable quarterly in arrears
commencing with the last Business Day of each June, September, December and
March following issuance of each Letter of Credit and on the Expiration Date.
The Borrower shall also pay to the Agent for the Agent's sole account the
Agent's then in effect customary fees and administrative expenses payable with
respect to the Letters of Credit as the Agent may generally charge or incur from
time to time in connection with the issuance, maintenance, modification (if
any), assignment or transfer (if any), negotiation, and administration of
Letters of Credit.

3.   DISBURSEMENTS, REIMBURSEMENT.

     (a)  Immediately upon the Issuance of each Letter of Credit, each Bank
shall be deemed to, and hereby irrevocably and unconditionally agrees to,
purchase from the Agent a participation in such Letter of Credit and each
drawing thereunder in an amount equal to such Bank's Ratable Share of the
maximum amount available to be drawn under such Letter of Credit and the amount
of such drawing, respectively.

<PAGE>

     (b)  In the event of any request for a drawing under a Letter of Credit by
the beneficiary or transferee thereof, the Agent will promptly notify the
Borrower. Provided that it shall have received such notice, the Borrower shall
reimburse (such obligation to reimburse the Agent shall sometimes be referred to
as a "REIMBURSEMENT OBLIGATION") the Agent prior to 12:00 noon, Pittsburgh time
on each date that an amount is paid by the Agent under any Letter of Credit
(each such date, a "DRAWING DATE") in an amount equal to the amount so paid by
the Agent. In the event the Borrower fails to reimburse the Agent for the full
amount of any drawing under any Letter of Credit by 12:00 noon, Pittsburgh time,
on the Drawing Date, the Agent will promptly notify each Bank thereof, and the
Borrower shall be deemed to have requested that Revolving Credit Loans be made
by the Banks under the Base Rate Option to be disbursed on the Drawing Date
under such Letter of Credit, subject to the amount of the unutilized portion of
the Revolving Credit Commitment and subject to the conditions set forth in
Section 7.2 [Each Additional Loan] other than any notice requirements. Any
notice given by the Agent pursuant to this Paragraph 3 may be oral if
immediately confirmed in writing; provided that the lack of such an immediate
confirmation shall not affect the conclusiveness or binding effect of such
notice.

     (c)  Each Bank shall upon any notice pursuant to Paragraph 3(b) of this
EXHIBIT 2.8 make available to the Agent an amount in immediately available funds
equal to its Ratable Share of the amount of the drawing, whereupon the
participating Banks shall (subject to Paragraph 2(d) of this EXHIBIT 2.8) each
be deemed to have made a Revolving Credit Loan under the Base Rate Option to the
Borrower in that amount. If any Bank so notified fails to make available to the
Agent for the account of the Agent the amount of such Bank's Ratable Share of
such amount by no later than 2:00 p.m., Pittsburgh time on the Drawing Date,
then interest shall accrue on such Bank's obligation to make such payment, from
the Drawing Date to the date on which such Bank makes such payment (i) at a rate
per annum equal to the Federal Funds Effective Rate during the first three (3)
days following the Drawing Date and (ii) at a rate per annum equal to the rate
applicable to Loans under the Revolving Credit Base Rate Option on and after the
fourth day following the Drawing Date. The Agent will promptly give notice of
the occurrence of the Drawing Date, but failure of the Agent to give any such
notice on the Drawing Date or in sufficient time to enable any Bank to effect
such payment on such date shall not relieve such Bank from its obligation under
this Paragraph 3(C).

     (d)  With respect to any unreimbursed drawing that is not converted into
Revolving Credit Loans under the Base Rate Option to the Borrower in whole or in
part as contemplated by Paragraph 3(b) of this EXHIBIT 2.8, because of the
Borrower's failure to satisfy the conditions set forth in Section 7.2 [Each
Additional Loan] other than any notice requirements or for any other reason, the
Borrower shall be deemed to have incurred from the Agent a Letter of Credit
Borrowing in the amount of such drawing. Such Letter of Credit Borrowing shall
be due and payable on demand (together with interest) and shall bear interest at
the rate per annum applicable to the Revolving Credit Loans under the Base Rate
Option. Each Bank's payment to the Agent pursuant to Paragraph 3(C) shall be
deemed to be a payment in respect of its

<PAGE>

participation in such Letter of Credit Borrowing and shall constitute a
Participation Advance from such Bank in satisfaction of its participation
obligation under this Paragraph 3.

4.   REPAYMENT OF PARTICIPATION ADVANCES.

     (a)  Upon (and only upon) receipt by the Agent for its account of
immediately available funds from the Borrower (i) in reimbursement of any
payment made by the Agent under the Letter of Credit with respect to which any
Bank has made a Participation Advance to the Agent, or (ii) in payment of
interest on such a payment made by the Agent under such a Letter of Credit, the
Agent will pay to each Bank, in the same funds as those received by the Agent,
the amount of such Bank's Ratable Share of such funds, except the Agent shall
retain the amount of the Ratable Share of such funds of any Bank that did not
make a Participation Advance in respect of such payment by Agent.

     (b)  If the Agent is required at any time to return to any Loan Party, or
to a trustee, receiver, liquidator, custodian, or any official in any Insolvency
Proceeding, any portion of the payments made by any Loan Party to the Agent
pursuant to Paragraph 4(a) in reimbursement of a payment made under the Letter
of Credit or interest or fee thereon, each Bank shall, on demand of the Agent,
forthwith return to the Agent the amount of its Ratable Share of any amounts so
returned by the Agent plus interest thereon from the date such demand is made to
the date such amounts are returned by such Bank to the Agent, at a rate per
annum equal to the Federal Funds Effective Rate in effect from time to time.

5.   DOCUMENTATION.

     Each Loan Party agrees to be bound by the terms of the Agent's application
and agreement for letters of credit and the Agent's written regulations and
customary practices relating to letters of credit, though such interpretation
may be different from the such Loan Party's own. In the event of a conflict
between such application or agreement and this Agreement, this Agreement shall
govern. It is understood and agreed that, except in the case of gross negligence
or willful misconduct, the Agent shall not be liable for any error, negligence
and/or mistakes, whether of omission or commission, in following any Loan
Party's instructions or those contained in the Letters of Credit or any
modifications, amendments or supplements thereto.

6.   DETERMINATIONS TO HONOR DRAWING REQUESTS.

     In determining whether to honor any request for drawing under any Letter of
Credit by the beneficiary thereof, the Agent shall be responsible only to
determine that the documents and certificates required to be delivered under
such Letter of Credit have been delivered and that they comply on their face
with the requirements of such Letter of Credit.

<PAGE>

7.   NATURE OF PARTICIPATION AND REIMBURSEMENT OBLIGATIONS.

     Each Bank's obligation in accordance with this Agreement to make the
Revolving Credit Loans or Participation Advances, as contemplated by Paragraph 3
of this EXHIBIT 2.8, as a result of a drawing under a Letter of Credit, and the
Obligations of the Borrower to reimburse the Agent upon a draw under a Letter of
Credit, shall be absolute, unconditional and irrevocable, and shall be performed
strictly in accordance with the terms of this EXHIBIT 2.8 under all
circumstances, including without limitation, the following circumstances: (i)
any set-off, counterclaim, recoupment, defense or other right which such Bank
may have against the Agent, the Borrower or any other Person for any reason
whatsoever; the failure of any Loan Party or any other Person to comply, in
connection with a Letter of Credit Borrowing, with the conditions set forth in
Section 2.1 [Revolving Credit Commitments], 2.4 [Revolving Credit Loan
Requests], 2.5 [Making Revolving Credit Loans] or 7.2 [Each Additional Loan] or
as otherwise set forth in this Agreement for the making of a Revolving Credit
Loan, it being acknowledged that such conditions are not required for the making
of a Letter of Credit Borrowing and the obligation of the Banks to make
Participation Advances under Paragraph 3 of this EXHIBIT 2.8; (ii) any lack of
validity or enforceability of any Letter of Credit; the existence of any claim,
set-off, defense or other right which any Loan Party or any Bank may have at any
time against a beneficiary or any transferee of any Letter of Credit (or any
Persons for whom any such transferee may be acting), the Agent or any Bank or
any other Person or, whether in connection with this Agreement, the transactions
contemplated herein or any unrelated transaction; and (iii) any draft, demand,
certificate or other document presented under any Letter of Credit proving to be
forged, fraudulent, invalid or insufficient in any respect or any statement
therein being untrue or inaccurate in any respect even if the Agent has been
notified thereof.

8.   INDEMNITY.

     In addition to amounts payable as provided in Paragraph 5 of EXHIBIT 10
[Agent Provisions], the Borrower hereby agrees to protect, indemnify, pay and
save harmless the Agent from and against any and all claims, demands,
liabilities, damages, losses, costs, charges and expenses (including reasonable
fees, expenses and disbursements of counsel and allocated costs of internal
counsel) which the Agent may incur or be subject to as a consequence, direct or
indirect, of (i) the issuance of any Letter of Credit, other than as a result of
(A) the gross negligence or willful misconduct of the Agent as determined by a
final judgment of a court of competent jurisdiction or (B) subject to the
following clause (ii), the wrongful dishonor by the Agent of a proper demand for
payment made under any Letter of Credit, or (ii) the failure of the Agent to
honor a drawing under any such Letter of Credit as a result of any act or
omission, whether rightful or wrongful, of any present or future de jure or de
facto government or governmental authority (all such acts or omissions herein
called "GOVERNMENTAL ACTS").

<PAGE>

9.   LIABILITY FOR ACTS AND OMISSIONS.

     As between any Loan Party and the Agent, such Loan Party assumes all risks
of the acts and omissions of, or misuse of the Letters of Credit by, the
respective beneficiaries of such Letters of Credit. In furtherance and not in
limitation of the foregoing, the Agent shall not be responsible for: (i) the
form, validity, sufficiency, accuracy, genuineness or legal effect of any
document submitted by any party in connection with the application for an
issuance of any such Letter of Credit, even if it should in fact prove to be in
any or all respects invalid, insufficient, inaccurate, fraudulent or forged
(even if the Agent shall have been notified thereof); (ii) the validity or
sufficiency of any instrument transferring or assigning or purporting to
transfer or assign any such Letter of Credit or the rights or benefits
thereunder or proceeds thereof, in whole or in part, which may prove to be
invalid or ineffective for any reason; (iii) the failure of the beneficiary of
any such Letter of Credit, or any other party to which such Letter of Credit may
be transferred, to comply fully with any conditions required in order to draw
upon such Letter of Credit or any other claim of any Loan Party against any
beneficiary of such Letter of Credit, or any such transferee, or any dispute
between or among any Loan Party and any beneficiary of any Letter of Credit or
any such transferee; (iv) errors, omissions, interruptions or delays in
transmission or delivery of any messages, by mail, cable, telegraph, telex or
otherwise, whether or not they be in cipher; (v) errors in interpretation of
technical terms; (vi) any loss or delay in the transmission or otherwise of any
document required in order to make a drawing under any such Letter of Credit or
of the proceeds thereof; (vii) the misapplication by the beneficiary of any such
Letter of Credit of the proceeds of any drawing under such Letter of Credit; or
(viii) any consequences arising from causes beyond the control of the Agent,
including any Governmental Acts, and none of the above shall affect or impair,
or prevent the vesting of, any of the Agent's rights or powers hereunder.
Nothing in the preceding sentence shall relieve the Agent from liability for the
Agent's gross negligence or willful misconduct in connection with actions or
omissions described in such clauses (i) through (viii) of such sentence.
<PAGE>

                                   EXHIBIT 8.3

                             REPORTING REQUIREMENTS

1.   MONTHLY FINANCIAL STATEMENTS.

     As soon as available and in any event within forty-five (45) calendar days
after the end of each calendar month other than the last month of each fiscal
quarter, the Borrower's financial statements, consisting of a consolidated and,
prior to the later of December 31, 2000 or an IPO, consolidating balance sheet
as of the end of such month and related consolidated and, prior to the later of
December 31, 2000 or an IPO, consolidating statements of income, stockholders'
equity and cash flows for the month then ended and the fiscal year through that
date, all in reasonable detail and certified (subject to normal year-end
adjustments and the absence of footnotes) by the Chief Executive Officer,
President or Chief Financial Officer of the Borrower as having been prepared in
accordance with GAAP, consistently applied, and setting forth in comparative
form the respective financial statements for the corresponding date and period
in the previous fiscal year.

     As soon as available and in any event within thirty (30) calendar days
after the end of each calendar month, a Borrowing Base Certificate as of the
last day of the immediately preceding month in the form of EXHIBIT 1.1(B)
hereto, appropriately completed, executed and delivered by the Chief Executive
Officer, President or Chief Financial Officer of the Borrower.

2.   QUARTERLY FINANCIAL STATEMENTS.

     As soon as available and in any event within sixty (60) calendar days after
the end of each of the first three (3) fiscal quarters in each fiscal year,
financial statements of the Borrower, consisting of a consolidated and, prior to
the later of December 31, 2000 or an IPO, consolidating balance sheet as of the
end of such fiscal quarter and related consolidated and, prior to the later of
December 31, 2000 or an IPO, consolidating statements of income, retained
earnings and cash flows for the fiscal quarter then ended and the fiscal year
through that date, all in reasonable detail and certified (subject to normal
year-end audit adjustments and the absence of footnotes) by the Chief Executive
Officer, President or Chief Financial Officer of the Borrower as having been
prepared in accordance with GAAP, consistently applied, and setting forth in
comparative form the respective financial statements for the corresponding date
and period in the previous fiscal year.

3.   ANNUAL FINANCIAL STATEMENTS.

     As soon as available and in any event within one hundred twenty (120) days
after the end of each fiscal year of the Borrower, financial statements of the
Borrower consisting of a consolidated and, prior to the later of December 31,
2000 or an IPO, consolidating balance sheet as of the end of such fiscal year,
and related consolidated and, prior to the later of December 31, 2000 or an IPO,
consolidating statements of income, retained earnings and cash flows for the

<PAGE>

fiscal year then ended, all in reasonable detail and setting forth in
comparative form the financial statements as of the end of and for the preceding
fiscal year, and certified by independent certified public accountants of
nationally recognized standing satisfactory to the Agent. The certificate or
report of accountants shall be free of qualifications (other than any
consistency qualification that may result from a change in the method used to
prepare the financial statements as to which such accountants concur) and shall
not indicate the occurrence or existence of any event, condition or contingency
which would materially impair the prospect of payment or performance of any
covenant, agreement or duty of any Loan Party under any of the Loan Documents.
The Loan Parties shall deliver with such financial statements and certification
by their accountants a letter of such accountants to the Agent and the Banks
substantially (i) to the effect that, based upon their ordinary and customary
examination of the affairs of the Borrower, performed in connection with the
preparation of such consolidated financial statements, and in accordance with
generally accepted auditing standards, they are not aware of the existence of
any condition or event which constitutes an Event of Default or Potential
Default or, if they are aware of such condition or event, stating the nature
thereof and confirming the Borrower's calculations with respect to the
certificate to be delivered pursuant to paragraph 4 of this SCHEDULE 8.3 with
respect to such financial statements and (ii) to the effect that the Banks are
intended to rely upon such accountant's certification of the annual financial
statements and that such accountants authorize the Loan Parties to deliver such
reports and certificate to the Banks on such accountants' behalf.

4.   CERTIFICATE OF THE BORROWER.

     Concurrently with the financial statements of the Borrower furnished to the
Agent and to the Banks pursuant to paragraphs 2 and 3 of this EXHIBIT 8.3, a
certificate of the Borrower signed by the Chief Executive Officer, President or
Chief Financial Officer of the Borrower, in the form of EXHIBIT 8.3.4, to the
effect that, except as described pursuant to paragraph 5 of this SCHEDULE 8.3,
(i) the representations and warranties of the Borrower contained in Section 6
and in the other Loan Documents are true on and as of the date of such
certificate with the same effect as though such representations and warranties
had been made on and as of such date (except representations and warranties
which expressly relate solely to an earlier date or time) and the Loan Parties
have performed and complied with all covenants and conditions hereof, (ii) no
Event of Default or Potential Default exists and is continuing on the date of
such certificate, (iii) containing calculations in sufficient detail to
demonstrate compliance as of the date of such financial statements with all
financial covenants contained in Section 8.2 [Negative Covenants], and (iv)
containing a general management discussion of the financial statement results
for such period. The Borrower shall also provide concurrently with the
certificate described above a written summary discussing the financial results
for the fiscal quarter/fiscal year then ended and comparing the results to the
prior year's fiscal quarter/fiscal year and to the annual budget delivered to
the Agent and the Banks pursuant to paragraph 8(a) of this Exhibit 8.3. The
certificate delivered with the annual financial statements pursuant to paragraph
3 shall include a determination in reasonable detail of the Excess Cash Flow and
the amount of the Mandatory Prepayment of Excess Cash Flow applicable to such
fiscal year.

<PAGE>

5.   NOTICE OF DEFAULT.

     Promptly after any officer of any Loan Party has learned of the occurrence
of an Event of Default or Potential Default, a certificate signed by the Chief
Executive Officer, President or Chief Financial Officer of such Loan Party
setting forth the details of such Event of Default or Potential Default and the
action which such Loan Party proposes to take with respect thereto.

6.   NOTICE OF LITIGATION.

     Promptly after the commencement thereof, notice of all actions, suits,
proceedings or investigations before or by any Official Body or any other Person
against any Loan Party or Subsidiary of any Loan Party which relate to the
Collateral, involve a claim or series of claims in excess of $250,000 or which
if adversely determined would constitute a Material Adverse Change.

7.   CERTAIN EVENTS.

     Written notice to the Agent:

     (a)  at least thirty (30) calendar days prior thereto, with respect to any
proposed sale or transfer of assets pursuant to Section 8.2.7(iv) or (v)
[Dispositions of Assets or Subsidiaries],

     (b)  within the time limits set forth in Section 8.2.14 [Changes in
Organizational Documents], any amendment to the organizational documents of any
Loan Party; and

     (c)  at least thirty (30) calendar days prior thereto, with respect to any
change in any Loan Party's locations from the locations set forth in Schedule A
to the Security Agreement.

8.   BUDGETS, FORECASTS, OTHER REPORTS AND INFORMATION.

     Promptly upon their becoming available to the Borrower:

     (a)  the annual budget and any forecasts or projections of the Borrower,
and its Subsidiaries on a consolidated and consolidating basis, to be supplied
not later than thirty (30) days after commencement of the fiscal year to which
any of the foregoing may be applicable,

     (b)  any reports including management letters submitted to the Borrower by
independent accountants in connection with any annual, interim or special audit,

<PAGE>

     (c)  any reports, notices or proxy statements generally distributed by the
Borrower to its stockholders on a date no later than the date supplied to such
stockholders,

     (d)  regular or periodic reports, including Forms 10-K, 10-Q and 8-K,
registration statements and prospectuses, filed by the Borrower with the
Securities and Exchange Commission,

     (e)  a copy of any order in any proceeding to which the Borrower or any of
its Subsidiaries is a party issued by any Official Body, and

     (f)  such other reports and information as any of the Banks may from time
to time reasonably request. The Borrower shall also notify the Banks promptly of
the enactment or adoption of any Law which may result in a Material Adverse
Change.

9.   NOTICES REGARDING PLANS AND BENEFIT ARRANGEMENTS; CERTAIN EVENTS.

     Promptly upon becoming aware of the occurrence thereof, notice (including
the nature of the event and, when known, any action taken or threatened by the
Internal Revenue Service or the PBGC with respect thereto) of:

     (a)  any Reportable Event with respect to the Borrower or any other member
of the ERISA Group (regardless of whether the obligation to report said
Reportable Event to the PBGC has been waived),

     (b)  any Prohibited Transaction which could subject the Borrower or any
other member of the ERISA Group to a civil penalty assessed pursuant to Section
502(i) of ERISA or a tax imposed by Section 4975 of the Internal Revenue Code in
connection with any Plan, any Benefit Arrangement or any trust created
thereunder,

     (c)  any assertion of material withdrawal liability with respect to any
Multiemployer Plan,

     (d)  any partial or complete withdrawal from a Multiemployer Plan by the
Borrower or any other member of the ERISA Group under Title IV of ERISA (or
assertion thereof), where such withdrawal is likely to result in material
withdrawal liability,

     (e)  any cessation of operations (by the Borrower or any other member of
the ERISA Group) at a facility in the circumstances described in Section 4062(e)
of ERISA,

     (f)  withdrawal by the Borrower or any other member of the ERISA Group from
a Multiple Employer Plan,

     (g)  a failure by the Borrower or any other member of the ERISA Group to
make a payment to a Plan required to avoid imposition of a Lien under Section
302(f) of ERISA,

<PAGE>

     (h)  the adoption of an amendment to a Plan requiring the provision of
security to such Plan pursuant to Section 307 of ERISA, or

     (i)  any change in the actuarial assumptions or funding methods used for
any Plan, where the effect of such change is to materially increase or
materially reduce the unfunded benefit liability or obligation to make periodic
contributions.

10.  NOTICES OF INVOLUNTARY TERMINATION AND ANNUAL REPORTS

     Promptly after receipt thereof, copies of (a) all notices received by the
Borrower or any other member of the ERISA Group of the PBGC's intent to
terminate any Plan administered or maintained by the Borrower or any member of
the ERISA Group, or to have a trustee appointed to administer any such Plan; and
(b) at the request of the Agent or any Bank each annual report (IRS Form 5500
series) and all accompanying schedules, the most recent actuarial reports, the
most recent financial information concerning the financial status of each Plan
administered or maintained by the Borrower or any other member of the ERISA
Group, and schedules showing the amounts contributed to each such Plan by or on
behalf of the Borrower or any other member of the ERISA Group in which any of
their personnel participate or from which such personnel may derive a benefit,
and each Schedule B (Actuarial Information) to the annual report filed by the
Borrower or any other member of the ERISA Group with the Internal Revenue
Service with respect to each such Plan.

11.  NOTICE OF VOLUNTARY TERMINATION.

     Promptly upon the filing thereof, copies of any Form 5310, or any successor
or equivalent form to Form 5310, filed with the PBGC in connection with the
termination of any Plan.

<PAGE>

                                   EXHIBIT 10

                                AGENT PROVISIONS

1.   APPOINTMENT.

     Each Bank hereby irrevocably designates, appoints and authorizes PNC Bank
to act as Agent for such Bank under this Agreement and to execute and deliver or
accept on behalf of each of the Banks the other Loan Documents. Each Bank hereby
irrevocably authorizes, and each holder of any Note by the acceptance of a Note
shall be deemed irrevocably to authorize, the Agent to take such action on its
behalf under the provisions of this Agreement and the other Loan Documents and
any other instruments and agreements referred to herein, and to exercise such
powers and to perform such duties hereunder as are specifically delegated to or
required of the Agent by the terms hereof, together with such powers as are
reasonably incidental thereto. PNC Bank agrees to act as the Agent on behalf of
the Banks to the extent provided in this Agreement.

2.   DELEGATION OF DUTIES.

     The Agent may perform any of its duties hereunder by or through agents or
employees (provided such delegation does not constitute a relinquishment of its
duties as Agent) and, subject to Paragraphs 5 and 6 of this EXHIBIT 10, shall be
entitled to engage and pay for the advice or services of any attorneys,
accountants or other experts concerning all matters pertaining to its duties
hereunder and to rely upon any advice so obtained.

3.   NATURE OF DUTIES; INDEPENDENT CREDIT INVESTIGATION.

                  The Agent shall have no duties or responsibilities except
those expressly set forth in this Agreement and no implied covenants, functions,
responsibilities, duties, obligations, or liabilities shall be read into this
Agreement or otherwise exist. The duties of the Agent shall be mechanical and
administrative in nature; the Agent shall not have by reason of this Agreement a
fiduciary or trust relationship in respect of any Bank; and nothing in this
Agreement, expressed or implied, is intended to or shall be so construed as to
impose upon the Agent any obligations in respect of this Agreement except as
expressly set forth herein. Without limiting the generality of the foregoing,
the use of the term "agent" in this Agreement with reference to the Agent is not
intended to connote any fiduciary or other implied (or express) obligations
arising under agency doctrine of any applicable Law. Instead, such term is used
merely as a matter of market custom, and is intended to create or reflect only
an administrative relationship between independent contracting parties. Each
Bank expressly acknowledges (i) that the Agent has not made any representations
or warranties to it and that no act by the Agent hereafter taken, including any
review of the affairs of any of the Loan Parties, shall be deemed to constitute
any representation or warranty by the Agent to any Bank; (ii) that it has made
and will continue to make, without reliance upon the Agent, its own independent
investigation of the financial condition and affairs and its own appraisal of
the creditworthiness of each of the Loan Parties in connection with this

<PAGE>

Agreement and the making and continuance of the Loans hereunder; and (iii)
except as expressly provided herein, that the Agent shall have no duty or
responsibility, either initially or on a continuing basis, to provide any Bank
with any credit or other information with respect thereto, whether coming into
its possession before the making of any Loan or at any time or times thereafter.

4.   ACTIONS IN DISCRETION OF AGENT; INSTRUCTIONS FROM THE BANKS.

     The Agent agrees, upon the written request of the Required Banks, to take
or refrain from taking any action of the type specified as being within the
Agent's rights, powers or discretion herein, provided that the Agent shall not
be required to take any action which exposes the Agent to personal liability or
which is contrary to this Agreement or any other Loan Document or applicable
Law. In the absence of a request by the Required Banks, the Agent shall have
authority, in its sole discretion, to take or not to take any such action,
unless this Agreement specifically requires the consent of the Required Banks or
all of the Banks. Any action taken or failure to act pursuant to such
instructions or discretion shall be binding on the Banks, subject to Paragraph 6
of this EXHIBIT 10. Subject to the provisions of Paragraph 6, no Bank shall have
any right of action whatsoever against the Agent as a result of the Agent acting
or refraining from acting hereunder in accordance with the instructions of the
Required Banks, or in the absence of such instructions, in the absolute
discretion of the Agent.

5.   REIMBURSEMENT AND INDEMNIFICATION OF AGENT BY THE BORROWER.

     The Borrower unconditionally agrees to pay or reimburse the Agent and hold
the Agent harmless against (a) liability for the payment of all reasonable
out-of-pocket costs, expenses and disbursements, including reasonable fees and
expenses of counsel, appraisers and environmental consultants, incurred by the
Agent (i) in connection with the development, negotiation, preparation,
printing, execution, administration, syndication, interpretation and performance
of this Agreement and the other Loan Documents (provided that prior to an Event
of Default, the Borrower shall only be responsible to reimburse the Agent for
expenses of the Agent relating to one audit of the Loan Parties books and
records in each year), (ii) relating to any requested amendments, waivers or
consents pursuant to the provisions hereof, (iii) in connection with the
enforcement of this Agreement or any other Loan Document or collection of
amounts due hereunder or thereunder or the proof and allowability of any claim
arising under this Agreement or any other Loan Document, whether in bankruptcy
or receivership proceedings or otherwise, and (iv) in any workout or
restructuring or in connection with the protection, preservation, exercise or
enforcement of any of the terms hereof or of any rights hereunder or under any
other Loan Document or in connection with any foreclosure, collection or
bankruptcy proceedings, and (b) all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements of any
kind or nature whatsoever which may be imposed on, incurred by or asserted
against the Agent, in its capacity as such, in any way relating to or arising
out of this Agreement or any other Loan Documents or any action taken or omitted
by the Agent hereunder or thereunder, provided that the Borrower shall not be
liable for any portion of

<PAGE>

such liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements if the same results from the Agent's
gross negligence or willful misconduct, or if the Borrower was not given notice
of the subject claim and the opportunity to participate in the defense thereof,
at its expense (except that the Borrower shall remain liable to the extent such
failure to give notice does not result in a loss to the Borrower), or if the
same results from a compromise or settlement agreement entered into without the
consent of the Borrower, which shall not be unreasonably withheld. In addition,
the Borrower agrees to reimburse and pay all reasonable out-of-pocket expenses
of the Agent's regular employees and agents engaged periodically to perform
audits of the Loan Parties' books, records and business properties.

6.   EXCULPATORY PROVISIONS; LIMITATION OF LIABILITY.

     Neither the Agent nor any of its directors, officers, employees, agents,
attorneys or Affiliates shall (a) be liable to any Bank for any action taken or
omitted to be taken by it or them hereunder, or in connection herewith including
pursuant to any Loan Document, unless caused by its or their own gross
negligence or willful misconduct, (b) be responsible in any manner to any of the
Banks for the effectiveness, enforceability, genuineness, validity or the due
execution of this Agreement or any other Loan Documents or for any recital,
representation, warranty, document, certificate, report or statement herein or
made or furnished under or in connection with this Agreement or any other Loan
Documents, or (C) be under any obligation to any of the Banks to ascertain or to
inquire as to the performance or observance of any of the terms, covenants or
conditions hereof or thereof on the part of the Loan Parties, or the financial
condition of the Loan Parties, or the existence or possible existence of any
Event of Default or Potential Default. No claim may be made by any of the Loan
Parties, any Bank, the Agent or any of their respective Subsidiaries against the
Agent, any Bank or any of their respective directors, officers, employees,
agents, attorneys or Affiliates, or any of them, for any special, indirect or
consequential damages or, to the fullest extent permitted by Law, for any
punitive damages in respect of any claim or cause of action (whether based on
contract, tort, statutory liability, or any other ground) based on, arising out
of or related to any Loan Document or the transactions contemplated hereby or
any act, omission or event occurring in connection therewith, including the
negotiation, documentation, administration or collection of the Loans, and each
of the Loan Parties, (for itself and on behalf of each of its Subsidiaries), the
Agent and each Bank hereby waive, releases and agree never to sue upon any claim
for any such damages, whether such claim now exists or hereafter arises and
whether or not it is now known or suspected to exist in its favor. Each Bank
agrees that, except for notices, reports and other documents expressly required
to be furnished to the Banks by the Agent hereunder or given to the Agent for
the account of or with copies for the Banks, the Agent and each of its
directors, officers, employees, agents, attorneys or Affiliates shall not have
any duty or responsibility to provide any Bank with any credit or other
information concerning the business, operations, property, condition (financial
or otherwise), prospects or creditworthiness of the Loan Parties which may come
into the possession of the Agent or any of its directors, officers, employees,
agents, attorneys or Affiliates.

<PAGE>

7.   REIMBURSEMENT AND INDEMNIFICATION OF AGENT BY BANKS.

     Each Bank agrees to reimburse and indemnify the Agent (to the extent not
reimbursed by the Borrower and without limiting the Obligation of the Borrower
to do so) in proportion to its Ratable Share from and against all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements, including attorneys' fees and disbursements
(including the allocated costs of staff counsel), and costs of appraisers and
environmental consultants, of any kind or nature whatsoever which may be imposed
on, incurred by or asserted against the Agent, in its capacity as such, in any
way relating to or arising out of this Agreement or any other Loan Documents or
any action taken or omitted by the Agent hereunder or thereunder, provided that
no Bank shall be liable for any portion of such liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements (a) if the same results from the Agent's gross negligence or
willful misconduct, or (b) if such Bank was not given notice of the subject
claim and the opportunity to participate in the defense thereof, at its expense
(except that such Bank shall remain liable to the extent such failure to give
notice does not result in a loss to the Bank), or (C) if the same results from a
compromise and settlement agreement entered into without the consent of such
Bank, which shall not be unreasonably withheld. In addition, each Bank agrees
promptly upon demand to reimburse the Agent (to the extent not reimbursed by the
Borrower and without limiting the Obligation of the Borrower to do so) in
proportion to its Ratable Share for all amounts due and payable by the Borrower
to the Agent in connection with the Agent's periodic audit of the Loan Parties'
books, records and business properties.

8.   RELIANCE BY AGENT.

     The Agent shall be entitled to rely upon any writing, telegram, telex or
teletype message, resolution, notice, consent, certificate, letter, cablegram,
statement, order or other document or conversation by telephone or otherwise
believed by it to be genuine and correct and to have been signed, sent or made
by the proper Person or Persons, and upon the advice and opinions of counsel and
other professional advisers selected by the Agent. The Agent shall be fully
justified in failing or refusing to take any action hereunder unless it shall
first be indemnified to its satisfaction by the Banks against any and all
liability and expense which may be incurred by it by reason of taking or
continuing to take any such action.

9.   NOTICE OF DEFAULT.

     The Agent shall not be deemed to have knowledge or notice of the occurrence
of any Potential Default or Event of Default unless the Agent has received
written notice from a Bank or the Borrower referring to this Agreement,
describing such Potential Default or Event of Default and stating that such
notice is a "notice of default."

<PAGE>

10.  NOTICES.

     The Agent shall promptly send to each Bank a copy of all notices received
from the Borrower pursuant to the provisions of this Agreement or the other Loan
Documents promptly upon receipt thereof. The Agent shall promptly notify the
Borrower and the other Banks of each change in the Base Rate and the effective
date thereof.

11.  BANKS IN THEIR INDIVIDUAL CAPACITIES.

     With respect to its Revolving Credit Commitment, the Revolving Credit
Loans, the Term Loan Commitment and the Term Loan made by it and any other
rights and powers given to it as a Bank hereunder or under any of the other Loan
Documents, the Agent shall have the same rights and powers hereunder as any
other Bank and may exercise the same as though it were not the Agent, and the
term "BANKS" shall, unless the context otherwise indicates, include the Agent in
its individual capacity. PNC Bank and its Affiliates and each of the Banks and
their respective Affiliates may, without liability to account, except as
prohibited herein, make loans to, accept deposits from, discount drafts for, act
as trustee under indentures of, and generally engage in any kind of banking or
trust business with, the Loan Parties and their Affiliates, in the case of the
Agent, as though it were not acting as Agent hereunder and in the case of each
Bank, as though such Bank were not a Bank hereunder. The Banks acknowledge that,
pursuant to such activities, the Agent or its Affiliates may (i) receive
information regarding the Loan Parties (including information that may be
subject to confidentiality obligations in favor of the Loan Parties) and
acknowledge that the Agent shall be under no obligation to provide such
information to them, and (ii) accept fees and other consideration from the Loan
Parties for services in connection with this Agreement and otherwise without
having to account for the same to the Banks.

12.  HOLDERS OF NOTES.

     The Agent may deem and treat any payee of any Note as the owner thereof for
all purposes hereof unless and until written notice of the assignment or
transfer thereof shall have been filed with the Agent. Any request, authority or
consent of any Person who at the time of making such request or giving such
authority or consent is the holder of any Note shall be conclusive and binding
on any subsequent holder, transferee or assignee of such Note or of any Note or
Notes issued in exchange therefor.

13.  EQUALIZATION OF BANKS.

                  The Banks and the holders of any participations in any Notes
agree among themselves that, with respect to all amounts received by any Bank or
any such holder for application on any Obligation hereunder or under any Note or
under any such participation, whether received by voluntary payment, by
realization upon security, by the exercise of the right of set-off or banker's
lien, by counterclaim or by any other non-pro rata source, equitable adjustment
will be made in the manner stated in the following sentence so that, in effect,
all such

<PAGE>

excess amounts will be shared ratably among the Banks and such holders in
proportion to their interests in payments under the Notes, except as otherwise
provided in Section 4.4.2, 5.4.2 or 5.6. The Banks or any such holder receiving
any such amount shall purchase for cash from each of the other Banks an interest
in such Bank's Loans in such amount as shall result in a ratable participation
by the Banks and each such holder in the aggregate unpaid amount under the
Notes, provided that if all or any portion of such excess amount is thereafter
recovered from the Bank or the holder making such purchase, such purchase shall
be rescinded and the purchase price restored to the extent of such recovery,
together with interest or other amounts, if any, required by law (including
court order) to be paid by the Bank or the holder making such purchase.

14.  SUCCESSOR AGENT.

     The Agent (i) may resign as Agent or (ii) shall resign if such resignation
is requested by the Required Banks (if the Agent is a Bank, the Agent's Loans
and its Commitment shall be considered in determining whether the Required Banks
have requested such resignation), in either case of (i) or (ii) by giving not
less than thirty (30) days' prior written notice to the Borrower. If the Agent
shall resign under this Agreement, then either (a) the Required Banks shall
appoint from among the Banks a successor agent for the Banks, subject to the
consent of the Borrower, such consent not to be unreasonably withheld, or (b) if
a successor agent shall not be so appointed and approved within the thirty (30)
day period following the Agent's notice to the Banks of its resignation, then
the Agent shall appoint, with the consent of the Borrower, such consent not to
be unreasonably withheld, a successor agent who shall serve as Agent until such
time as the Required Banks appoint and the Borrower consents to the appointment
of a successor agent. Upon its appointment pursuant to either clause (a) or (b)
above, such successor agent shall succeed to the rights, powers and duties of
the Agent, and the term "AGENT" shall mean such successor agent, effective upon
its appointment, and the former Agent's rights, powers and duties as Agent shall
be terminated without any other or further act or deed on the part of such
former Agent or any of the parties to this Agreement. After the resignation of
any Agent hereunder, the provisions of this EXHIBIT 10 shall inure to the
benefit of such former Agent and such former Agent shall not by reason of such
resignation be deemed to be released from liability for any actions taken or not
taken by it while it was an Agent under this Agreement.

15.  AGENT'S FEE.

     The Borrower shall pay to the Agent a nonrefundable fee (the "AGENT'S FEE")
under the terms of a letter (the "AGENT'S LETTER") between the Borrower and
Agent, dated June 16, 2000 as amended from time to time.

16.  AVAILABILITY OF FUNDS.

     The Agent may assume that each Bank has made or will make the proceeds of a
Loan available to the Agent unless the Agent shall have been notified by such
Bank on or before the later of (1) the close of Business on the Business Day
preceding the Borrowing Date with respect to such Loan or two (2) hours before
the time on which the Agent actually funds the

<PAGE>

proceeds of such Loan to the Borrower (whether using its own funds pursuant to
this Paragraph 16 or using proceeds deposited with the Agent by the Banks and
whether such funding occurs before or after the time on which Banks are required
to deposit the proceeds of such Loan with the Agent). The Agent may, in reliance
upon such assumption (but shall not be required to), make available to the
Borrower a corresponding amount. If such corresponding amount is not in fact
made available to the Agent by such Bank, the Agent shall be entitled to recover
such amount on demand from such Bank (or, if such Bank fails to pay such amount
forthwith upon such demand from the Borrower) together with interest thereon, in
respect of each day during the period commencing on the date such amount was
made available to the Borrower and ending on the date the Agent recovers such
amount, at a rate per annum equal to (i) the Federal Funds Effective Rate during
the first three (3) days after such interest shall begin to accrue and (ii) the
applicable interest rate in respect of such Loan after the end of such three
(3)-day period.

17   CALCULATIONS.

     In the absence of gross negligence or willful misconduct, the Agent shall
not be liable for any error in computing the amount payable to any Bank whether
in respect of the Loans, fees or any other amounts due to the Banks under this
Agreement. In the event an error in computing any amount payable to any Bank is
made, the Agent, the Borrower and each affected Bank shall, forthwith upon
discovery of such error, make such adjustments as shall be required to correct
such error, and any compensation therefor will be calculated at the Federal
Funds Effective Rate.

18.  BENEFICIARIES.

     Except as expressly provided herein, the provisions of this EXHIBIT 10 are
solely for the benefit of the Agent and the Banks, and the Loan Parties shall
not have any rights to rely on or enforce any of the provisions hereof. In
performing its functions and duties under this Agreement, the Agent shall act
solely as agent of the Banks and does not assume and shall not be deemed to have
assumed any obligation toward or relationship of agency or trust with or for any
of the Loan Parties.

<PAGE>

                                 SCHEDULE 1.1(A)

                                  PRICING GRID
<TABLE>
<CAPTION>
----------------------- --------------------------- --------------------------- --------------------------- ------------------------
                                 LEVEL I                     LEVEL II                   LEVEL III                  LEVEL IV
----------------------- --------------------------- --------------------------- --------------------------- ------------------------
<S>                     <C>                         <C>                         <C>                         <C>
Basis for               If the Leverage Ratio is    If the Leverage Ratio is    If the Leverage Ratio is    If the Leverage Ratio
Pricing*                less than 1.75x             equal to or greater than    equal to or greater than    is equal to or greater
                                                    1.75x but less than 2.25x   2.25x but less than 2.75x   than 2.75x
----------------------- --------------------------- --------------------------- --------------------------- ------------------------
REVOLVER
----------------------- --------------------------- --------------------------- --------------------------- ------------------------
Revolving Credit                   275                         300                         325                        350
Euro-Rate Margin
======================= =========================== =========================== =========================== ========================
Revolving Credit Base              125                         150                         175                        200
Rate Margin
======================= =========================== =========================== =========================== ========================
TERM LOAN A
======================= =========================== =========================== =========================== ========================
Term Loan A Euro-Rate              275                         300                         325                        350
Margin
======================= =========================== =========================== =========================== ========================
Term Loan A Base Rate              125                         150                         175                        200
Margin
======================= =========================== =========================== =========================== ========================
COMMITMENT FEE                    37.50                       37.50                         50                        50
----------------------- --------------------------- --------------------------- --------------------------- ------------------------
</TABLE>
All pricing is expressed in basis points. A basis point is equal to 1/100 of 1%.

<PAGE>

                                 EXHIBIT 1.1 (B)

                           BORROWING BASE CERTIFICATE

                                                       DATE: ____________

In accordance with the terms of the Amended and Restated Credit Agreement dated
as of ____________, 2000, as further amended from time to time (the "CREDIT
AGREEMENT"), among Linc.net, Inc. (the "BORROWER"), the Guarantors party
thereto, and General Electric Capital Corporation, as Syndication Agent, and PNC
Bank, National Association, as Agent (the "AGENT"), and various lenders party
thereto (the "BANKS"), the Borrower hereby makes the following certification:

<TABLE>
<CAPTION>
<S>                                                                                     <C>
Total Accounts                                                                          1.  $
                                                                                             ---------
Less Ineligible Accounts                                                                2.  $
                                                                                             ---------
Eligible Accounts                                                                       3.  $
                                                                                             ---------
Account Advance Rate                                                                    x    .85
                                                                                             ---------
Account Availability                                                                    4.  $
                                                                                             ---------
Total Inventory                                                                         5.  $
                                                                                             ---------
Less Ineligible Inventory                                                               6.  $
                                                                                             ---------
Eligible Inventory                                                                      7.  $
                                                                                             ---------
Inventory Advance Rate                                                                  x    .50
                                                                                             ---------
Inventory Availability                                                                  8.  $
                                                                                             ---------
Line 4 plus Line 8 (Borrowing Base)                                                     9.  $
                                                                                             ---------
Maximum Amount of Revolving Facility (As available pursuant to Section 2.1)             10. $
                                                                                             ---------
Availability for Revolving Credit Usage (lesser of lines 9 and 10)                      11. $
                                                                                             ---------
Revolving Credit Loans Outstanding                                                      12. $
                                                                                             ---------
Letters of Credit Outstanding                                                           13. $
                                                                                             ---------
Sum of (12) and (13)                                                                    14. $
                                                                                             ---------
Excess (deficiency) ((11) minus (14))                                                   15. $
                                                                                             ---------
</TABLE>

CERTIFIED BY:
             -----------------------

TITLE:
      ------------------------------

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00018-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00018-of-00352.parquet"}]]