Document:

<PAGE>   1
                                                                   EXHIBIT 10.15

                          LOAN AND SECURITY AGREEMENT

                           Dated as of July 28, 1999

                                    Between

                         ENERGY AUCTION EXCHANGE, INC.

                                as the Borrower

                                      and

                             CITICORP U.S.A., Inc.

                                 as the Lender

<PAGE>   2

                               TABLE OF CONTENTS
<TABLE>

<S>        <C>                                                                                                   <C>
Article I. INTERPRETATION OF THIS AGREEMENT.......................................................................1
   1.1     Definitions............................................................................................1
   1.2     Accounting Terms......................................................................................15
   1.3     Other Terms...........................................................................................15
   1.4     Computation of Time Periods...........................................................................15

Article II. LOANS AND OTHER FINANCIAL ACCOMMODATIONS.............................................................15
   2.1     The Term Loan Facility................................................................................15
   2.2     Working Capital Facility..............................................................................16
   2.3     Notice of Borrowing; Making the Loans.................................................................17
   2.4     Prepayments; Reserves.................................................................................18
   2.5     Interest.  ...........................................................................................18
   2.6     Prepayment Provisions; Breakage Costs.................................................................19
   2.7     Increased Costs; .....................................................................................19
   2.8     Payments and Computations.............................................................................20
   2.9     Taxes.................................................................................................21
   2.10    Reserved..............................................................................................23
   2.11    Conversions...........................................................................................23
   2.12    Fees..................................................................................................24

Article III. [RESERVED]..........................................................................................24

Article IV. COLLATERAL...........................................................................................24
   4.1     Grant of Security Interest............................................................................24
   4.2     Intentionally Omitted.................................................................................25
   4.3     Perfection and Protection of Security Interest........................................................25
   4.4     Location of Collateral. ..............................................................................26
   4.5     Title to, Liens on, and Sale and Use of Collateral.  .................................................26
   4.6     Access and Examination; Appraisals.  .................................................................26
   4.7     Intentionally Omitted.................................................................................26
   4.8     Collection of Receivables.  ..........................................................................27
   4.9     Equipment.  ..........................................................................................27
   4.10    Contract Rights.   ...................................................................................27
   4.11    Right to Cure.  ......................................................................................28
   4.12    Power of Attorney.  ..................................................................................28
   4.13    The Lender's Rights, Duties and Liabilities.  ........................................................29

Article V. BOOKS AND RECORDS; FINANCIAL INFORMATION; NOTICES.....................................................29
   5.1     Books and Records.  ..................................................................................29
   5.2     Financial Information.   .............................................................................30
   5.3     Notices to the Lender.  ..............................................................................31

Article VI. GENERAL WARRANTIES AND REPRESENTATIONS...............................................................32
   6.1     Authorization, Validity, and Enforceability of this Agreement and the Loan
           Documents.............................................................................................32
   6.2     Validity and Priority of Security Interest.  .........................................................33
</TABLE>

<PAGE>   3
<TABLE>

<S>        <C>                                                                                                  <C>
   6.3     Organization and Qualification.  .....................................................................33
   6.4     Corporate Name; Prior Transactions. ..................................................................33
   6.5     Subsidiaries and Affiliates.  ........................................................................33
   6.6     Financial Statements and Projections.  ...............................................................34
   6.7     Intentionally Omitted.................................................................................34
   6.8     Debt.  ...............................................................................................34
   6.9     Real Property; Leases.  ..............................................................................34
   6.10    Proprietary Rights.  .................................................................................34
   6.11    Intentionally Omitted.................................................................................34
   6.12    Litigation.  .........................................................................................34
   6.13    Restrictive Agreements.  .............................................................................35
   6.14    Labor Disputes.  .....................................................................................35
   6.15    Environmental, Health and Safety Laws.  ..............................................................35
   6.16    No Violation of Law.  ................................................................................35
   6.17    No Default.  .........................................................................................35
   6.18    ERISA.................................................................................................36
   6.19    Taxes.  ..............................................................................................37
   6.20    Investment Act.  .....................................................................................37
   6.21    Margin Securities.....................................................................................37
   6.22    Disclosure.  .........................................................................................38

Article VII. COVENANTS...........................................................................................38
   7.1     Taxes and Other Obligations.  ........................................................................38
   7.2     Corporate Existence and Good Standing.  ..............................................................38
   7.3     Compliance with Law and Agreements....................................................................38
   7.4     Maintenance of Property.  ............................................................................39
   7.5     Insurance.............................................................................................39
   7.6     Intentionally Omitted.................................................................................40
   7.7     Environmental, Health and Safety Laws.  ..............................................................40
   7.8     ERISA.................................................................................................40
   7.9     Mergers, Consolidations or Sales.  ...................................................................41
   7.10    Restricted Payments; Capital Change.  ................................................................41
   7.11    Transactions Affecting Collateral or Obligations.  ...................................................41
   7.12    Guaranties.  .........................................................................................41
   7.13    Debt.  ...............................................................................................42
   7.14    Prepayment.  .........................................................................................42
   7.15    Transactions with Affiliates.  .......................................................................42
   7.16    Business Conducted.  .................................................................................42
   7.17    Liens.  ..............................................................................................42
   7.18    Sale and Leaseback Transactions.......................................................................42
   7.19    New Subsidiaries.  ...................................................................................43
   7.20    Restricted Investments.  .............................................................................43
   7.21    Reserved..............................................................................................43
   7.22    Consolidated Debt Service Coverage Ratio.  ...........................................................43
   7.23    Consolidated Leverage Ratio.  ........................................................................43
   7.24    Year 2000.  ..........................................................................................43
   7.25    Use of Proceeds.  ....................................................................................43
</TABLE>

                                      ii
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<TABLE>

<S>        <C>                                                                                                  <C>
Article VIII. CONDITIONS OF LENDING..............................................................................44
   8.1     Conditions Precedent to Making of Loans...............................................................44
   8.2     Conditions Precedent to Each Loan.....................................................................45

Article IX. DEFAULT; REMEDIES....................................................................................46
   9.1     Events of Default.....................................................................................46
   9.2     Remedies..............................................................................................48

Article X. TERMINATION...........................................................................................49

Article XI. AMENDMENTS; ASSIGNMENTS; SUCCESSORS..................................................................49
   11.1    Amendments and Waivers.  .............................................................................49
   11.2    Participations........................................................................................49
   11.3    Assignments...........................................................................................50

Article XII. MISCELLANEOUS.......................................................................................51
   12.1    Cumulative Remedies; No Prior Recourse to Collateral.  ...............................................51
   12.2    No Implied Waivers.  .................................................................................51
   12.3    Severability.  .......................................................................................51
   12.4    Governing Law; Choice of Forum; Service of Process; Jury Trial Waiver.................................51
   12.5    Survival of Representations and Warranties.  .........................................................52
   12.6    Other Security and Guaranties.  ......................................................................53
   12.7    Fees and Expenses.  ..................................................................................53
   12.8    Notices...............................................................................................53
   12.9    Indemnity.............................................................................................54
   12.10   Waiver of Notices.  ..................................................................................55
   12.11   Counterparts.  .......................................................................................55
   12.12   Captions.  ...........................................................................................55
   12.13   Confidentiality.......................................................................................55
   12.14   Set-Off.   ...........................................................................................56
</TABLE>

                                      iii
<PAGE>   5

                                    EXHIBITS

EXHIBIT A                  -        Form of Notice of Borrowing
EXHIBIT B                  -        Form of Term Note
EXHIBIT C                  -        Form of Working Capital Note
EXHIBIT D                           Form of Notice of Conversion

                                   SCHEDULES

Schedule 1.1-B            -         Existing Liens
Schedule 4.4              -         List of Collateral Locations
Schedule 6.4              -         List of Prior Names
Schedule 6.5              -         Subsidiaries and Affiliates
Schedule 6.8              -         Debt
Schedule 6.9              -         Leases; Real Property
Schedule 6.10             -         Proprietary Rights
Schedule 6.12             -         Litigation
Schedule 6.14             -         Labor Disputes
Schedule 6.15             -         Environmental Matters
Schedule 6.18             -         Employee Benefit Plans
Schedule 7.15             -         Affiliate Transactions

                                      iv
<PAGE>   6

                          LOAN AND SECURITY AGREEMENT

         This LOAN AND SECURITY AGREEMENT (the "Agreement") is dated as of July
28, 1999 between CITICORP U.S.A., Inc. (the "Lender") and ENERGY AUCTION
EXCHANGE, INC. (the "Borrower"). In consideration of the mutual conditions and
agreements set forth in this Agreement, and for good and valuable
consideration, the receipt of which is hereby acknowledged, the Borrower and
the Lender hereby agree as follows.

                                  Article I.

                        INTERPRETATION OF THIS AGREEMENT

         1.1 Definitions. As used herein:

         "Account Debtor" means each Person obligated in any way on or in
connection with an Account.

         "Accounts" means, with respect to any Person, all of such Person's now
owned or hereafter acquired or arising accounts, contract rights, and any other
rights to payment for the sale or lease of goods or rendition of services
whether or not they have been earned by performance.

         "Affiliate" means with respect to any Person: (i) any Person which,
directly or indirectly, controls, is controlled by or is under common control
with such first Person; (ii) any Person which beneficially owns or holds,
directly or indirectly, ten percent (10.0%) or more of any class of Voting
Stock of such first Person; or (iii) any Person, ten percent (10.0%) or more of
any class of the Voting Stock (or if such Person is not a corporation, ten
percent (10.0%) or more of the equity interest) of which is beneficially owned
or held, directly or indirectly, by such first Person. Control (including, with
correlative meanings, the terms "controlled by" and "under common control
with"), as used herein, means the possession, directly or indirectly, of the
power in any form to direct or cause the direction of the management and
policies of the Person in question.

         "Applicable Margin" shall mean, at any time of determination, with
respect to the interest rate payable on each of the Loans, the percentage set
forth below for such Loan opposite the applicable Debt to Cash Flow Ratio as at
the end of the Borrower's most recently ended second or fourth fiscal quarter,
as the case may be:

               (a) for the Term Loan Facility:

<TABLE>
<CAPTION>

               DEBT TO CASH FLOW RATIO                      EURODOLLAR RATE              BASE RATE
               -----------------------                      ---------------              ---------
<S>                                                         <C>                          <C>
                    < 2.0 to 1.0                                 1.75%                   (-0.50%)

            > or = 2.0 to 1.0 and < 2.5 to 1.0                   2.00%                   (-0.25%)

            > or = 2.5 to 1.0 and < 3.0 to 1.0                   2.25%                       0%

              > or = 3.0 to 1.0 < 4.0 to 1.0                     2.50%                       0%

                    > or = 4.0 to 1.0                            2.75%                       0%

</TABLE>

<PAGE>   7
              (b) for the Working Capital Facility:

<TABLE>
<CAPTION>

                   DEBT TO CASH FLOW RATIO                  EURODOLLAR RATE              BASE RATE
                   -----------------------                  ---------------              ---------
<S>                                                         <C>                          <C>
                        < 2.0 to 1.0                             2.25%                       0%
                                                            ---------------
        > or =    2.0 to 1.0 and < 2.5 to 1.0                    2.50%                       0%
                                                            ---------------
        > or =    2.5 to 1.0 and < 3.0 to 1.0                    2.75%                       0%
                                                            ---------------
        > or =    3.0 to 1.0 and < 4.0 to 1.0                    3.00%                     0.25%
                                                            ---------------
              > or =     4.0 to 1.0                              3.25%                     0.50%
                                                            ---------------
</TABLE>

              (c) Initially, the Applicable Margin shall be (a) 0% for Base Rate
Loans and 2.75% for Eurodollar Rate Loans under the Term Loan Facility and (b)
0% for Base Rate Loans and 3.25% for Eurodollar Rate Loans under the Working
Capital Facility and each such Applicable Margin shall remain in effect until
September 30, 2000. Thereafter, the Applicable Margin shall be determined by the
Lender each September 30 and March 31 thereafter (the "Rate Determination Date")
based upon the information set forth in previously delivered or concurrently
delivered audited or unaudited financial statements delivered pursuant to
Section 5.2 for each fiscal period ended June 30 and December 31 of each year
(each a "Determining Financial Statement"). Except as hereinafter provided, any
change in the Applicable Margin shall take effect on the Business Day following
the Rate Determination Date provided the Borrower has made delivery to the
Lender of the applicable Determining Financial Statement, and the Applicable
Margin, as so determined, shall remain in effect until the earlier of (i) the
Business Day next following the next Rate Determination Date provided the
Borrower has made delivery to the Lender of a subsequent Determining Financial
Statement evidencing a Debt to Cash Flow Ratio requiring either a higher or
lower Applicable Margin from that then in effect or (ii) the day on which
Borrower fails to deliver to the Lender the applicable Determining Financial
Statement within the time provided by Section 5.2(a) or Section 5.2(b), as the
case may be, the Applicable Margin shall be deemed to be based upon an assumed
Debt to Cash Flow Ratio of equal to or greater than 4.0 to 1.0 and such
Applicable Margin shall be effective on the date such Determining Financial
Statement was required to have been delivered and shall remain in effect until
the Business Day following the Business Day of delivery to the Lender of a
Determining Financial Statement reflecting a Debt to Cash Flow Ratio for which a
lower Applicable Margin would be applicable. Notwithstanding any other provision
of this Agreement, during any period that an Event of Default exists, the
Applicable Margin for a Debt to Cash Flow Ratio of > or = 4.0 to 1.00 shall be
effective.

         "Arrangement Fee" has the meaning specified in Section 2.12(a).

         "Bankruptcy Code" shall mean Title 11 of the United States Code (11
U.S.C. Section 101 et seq.), as amended from time to time and any successor
statute.

         "Base Rate" means, at any time, a fluctuating interest rate per annum
as shall be in effect from time to time, which rate per annum shall at all
times be equal to the rate of interest announced publicly by Citibank, N.A. in
New York, New York, from time to time, as its base rate.

         "Base Rate Loan" means a Loan which bears interest as provided in
Section 2.5(a).

                                       2
<PAGE>   8

         "Benefit Plan" shall mean a defined benefit plan as defined in Section
3(35) of ERISA (other than a Multiemployer Plan) in respect of which the
Borrower or any ERISA Affiliate is or within the immediately preceding six (6)
years was an "employer" as defined in Section 3(5) of ERISA.

         "Borrowing" means a borrowing consisting of Loans of the same type
made on the same day by the Lender.

         "Business Day" means a day on which banks are not required or
authorized to close in New York City and, if the applicable day relates to a
Eurodollar Rate Loan, a day on which dealings are carried on in the London
interbank market and banks are open for business in London.

         "Capital Expenditures" shall mean with respect to any Person, for any
period, the aggregate of all expenditures, whether paid in cash or accrued as
liabilities during that period and including that portion of Capital Leases
that is capitalized on the balance sheet of such Person during such period
that, in conformity with GAAP, is required to be included in or reflected by
the property, plant or equipment or similar fixed asset accounts reflected in
the combined and consolidated balance sheet of such Person (including equipment
which is purchased simultaneously with the trade-in of existing equipment owned
by such Person to the extent of the gross amount of such purchase price less
the book value of the equipment being traded in at such time), but excluding
expenditures made in connection with the replacement or restoration of assets,
to the extent reimbursed or financed from insurance proceeds paid on account of
the loss of or damage to the assets being replaced or restored, or from awards
of compensation arising from the taking by condemnation of eminent domain of
such assets being replaced.

         "Capital Lease" shall mean, as applied to any Person, any lease of any
property (whether real, personal or mixed) by that Person as lessee that, in
conformity with GAAP, is accounted for as a capital lease on the balance sheet
of such Person.

         "Cash Interest Expense" means, with respect to any Person, for any
period, total interest expense, whether paid or accrued (including the interest
component of Capital Leases), of such Person, including, without limitation,
all commissions, discounts and other fees and charges owed with respect to
letters of credit and net costs under Interest Rate Contracts, but excluding,
however, interest expense not payable in cash (including amortization of
discount), all as determined in conformity with GAAP.

         "Change in Control" shall mean (a) Gary R. Vickers individually or any
trust created for the benefit of said individual or his spouse or descendants
(provided in connection with any trust the voting rights of any stock deposited
in such trust is retained by such individual as trustee) or any entity over
which such individual shall have control shall cease to own, directly or
indirectly, (legally or beneficially), free and clear of all liens or other
encumbrances), at least 51% of the outstanding Voting Stock of the Borrower,
(b) the Borrower shall cease to own at least 80% of the Voting Stock of OGAC.

         "Closing Date" shall mean the date all of the conditions precedent set
forth in Article VIII hereof are fulfilled with respect to the Term Loan and
any Working Capital Loan initially requested by Borrower.

                                       3
<PAGE>   9

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

         "Collateral" shall have the meaning ascribed to it in Section 4.1.

         "Commitment" shall mean the Lender's obligation to make the Working
Capital Loans under Section 2.2 up to the Working Capital Amount.

         "Consolidated Debt Service Coverage Ratio" shall mean, for any period,
for the Borrower and its Subsidiaries on a consolidated basis, the ratio of (i)
EBITDA, minus unfinanced Capital Expenditures net of purchase money and Capital
Lease obligations with respect thereto, to the extent permitted hereunder and
made during such period, to (ii) Fixed Charges during such period.

         "Consolidated Leverage Ratio" shall mean, at any time of
determination, with respect to the Borrower and its Subsidiaries on a
consolidated basis, the ratio of total liabilities to Net Worth.

         "Contaminant" shall mean any waste, pollutant, hazardous substance,
toxic substance, hazardous waste, special waste, petroleum or petroleum-derived
substance or waste, or any constituent of any such substance or waste.

         "Contract Rights" means all of the Borrower's right, title and
interest in, to and under any and all contracts and all other agreements
relating to the Borrower's business or its Property, whether such contracts or
agreements are currently in effect or executed by the Borrower after the date
hereof, together with any and all extensions, modifications, amendments and
renewals thereof, any and all payments or rents to be paid to the Borrower
under any such contracts and agreements, and all benefits and advantages to be
derived therefrom. Contract Rights shall, include, without limitation, any and
all rights of the Borrower under the Stock Purchase Agreement, the Shareholder
Agreement and all other documents executed in connection therewith and any
leases or subleases (whether as a lessor/sublessor or lessee/sublessee) to
which the Borrower is a party and all rents payable by any lessees/sublessees
under such leases or subleases and all claims for money due or to become due to
the Borrower under agreements and bills pursuant to which the Borrower
purchased any Property and all rights and claims of the Borrower now or
hereafter existing: (i) under any insurance, indemnities, warranties, and
guarantees provided for or arising out of or in connection with any of the
foregoing agreements; (ii) for any damages arising out of or for breach or
default under or in connection with any of the foregoing agreements; (iii) to
all other amounts from time to time paid or payable under or in connection with
any of the foregoing agreements; or (iv) to exercise or enforce any and all
covenants, remedies, powers and privileges thereunder.

         "Conversion Date" shall have the meaning ascribed to it in Section
2.11(a).

         "Credit Facility" means either the Term Loan Facility or the Working
Capital Facility.

         "Debt" means all liabilities, obligations and indebtedness of the
Borrower and its Subsidiaries on a consolidated basis owing to any Person, of
any kind or nature, now or hereafter owing, arising, due or payable, howsoever
evidenced, created, incurred, acquired or owing, whether primary, secondary,
direct, contingent, fixed or otherwise, without duplication, and including,
without in any way limiting the generality of the foregoing: (i) the Borrower's
or any

                                       4
<PAGE>   10

Subsidiary's liabilities and obligations to trade creditors; (ii) all of the
Obligations; (iii) all of the Borrower's obligations for borrowed money; (iv)
all obligations and liabilities of any Person secured by any Lien on the
Borrower's or any Subsidiary's Property, even though the Borrower or such
Subsidiary shall not have assumed or become liable for the payment thereof;
provided, however, that all such obligations and liabilities which are limited
in recourse to such Property shall be included in Debt only to the extent of
the value of such Property as shown on a consolidated balance sheet of the
Borrower and its Subsidiaries prepared in accordance with GAAP; (v) all
obligations or liabilities created or arising under any Capital Lease or
conditional sale or other title retention agreement with respect to Property
used or acquired by the Borrower or any Subsidiary, even if the rights and
remedies of the lessor, seller or lender thereunder are limited to repossession
of such Property; provided, however, that all such obligations and liabilities
which are limited in recourse to such Property shall be included in Debt only
to the extent of the value of such Property as shown on a consolidated balance
sheet of the Borrower and its Subsidiaries prepared in accordance with GAAP;
(vi) all accrued Plan liabilities; (vii) all obligations and liabilities under
Guaranties; and (viii) deferred taxes. Notwithstanding the foregoing, for
purposes of calculating or determining Debt, if the Borrower or any Subsidiary
are jointly and severally liable for the entire amount of any liability,
obligation or indebtedness or the Borrower or any Subsidiary is a guarantor of
any liability, obligation or indebtedness of the Borrower or Subsidiary, such
liability, obligation or indebtedness shall only be included in determining
Debt for the Borrower on a consolidated basis as the Debt of the Borrower or
Subsidiary, as the case may be, that is primarily liable therefor.

         "Debt to Cash Flow Ratio" means for any period with respect to the
Borrower and its Subsidiaries on a consolidated basis at any time of
determination, the ratio of (a) Funded Indebtedness to (b) EBITDA for the 12
consecutive month period ended at such time.

         "Default" means any event or condition which, with notice, the passage
of time or both, would constitute an Event of Default.

         "Default Rate" means a per annum interest rate equal to the sum of (a)
the interest rate otherwise applicable from time to time plus (b) two percent
(2.00%). Each Default Rate shall be adjusted simultaneously with any change in
the applicable interest rate.

         "DOL" shall mean the United States Department of Labor and any
successor department or agency.

         "Dollars" and "$" shall mean the lawful money of the United States of
America.

         "EBITDA" shall mean with respect to any Person, for any period, the
sum of the amounts for such period, of (i) Net Income, plus (ii) depreciation
and amortization expense, plus (iii) Cash Interest Expense, plus (iv) accrued
federal and state income taxes plus (v) extraordinary losses as determined in
accordance with GAAP which have been included in the determination of Net
Income, minus (vi) extraordinary gains as determined in accordance with GAAP
which have been included in the determination of Net Income.

         "Eligible Assignee" means either (a) a commercial bank organized under
the laws of the United States, or any state thereof, and having a combined
capital and surplus of at least $100,000,000; (b) a commercial bank organized
under the laws of any other country or a political subdivision of any such
country, and having a combined capital and surplus of at least

                                       5
<PAGE>   11

$100,000,000, provided that such bank is acting through a branch or agency
located in the United States; or (c) a Person organized under the United
States, or any state thereof, that is primarily engaged in the business of
commercial banking and that is (i) a subsidiary of Lender, (ii) a subsidiary of
a Person of which Lender is a subsidiary, or (iii) a Person of which Lender is
a subsidiary.

         "Environmental Laws" means any and all federal, state, local and
foreign statutes, laws, judicial decisions, regulations, ordinances, rules,
judgments, orders, decrees, plans, injunctions, permits, concessions, grants,
franchises, licenses, agreements and other governmental restrictions relating
to (i) the protection of the environment, (ii) the effect of the environment on
human health, (iii) emissions, discharges or releases of pollutants,
contaminants, hazardous substances or wastes into surface water, ground water
or land, or (iv) the manufacture, processing, distribution, use, treatment,
storage, disposal, transport or handling of pollutants, contaminants, hazardous
substances or wastes or the clean-up or other remediation thereof.

         "Equipment" means, with respect to any Person, all of such Person's
now owned and hereafter acquired machinery, equipment, furniture, furnishings,
fixtures, and other tangible personal property, including, without limitation,
trade fixtures, and office equipment, as well as all of such types of property
leased by such Person and all of such Person's rights and interests with
respect thereto under such leases (including, without limitation, options to
purchase); together with all present and future additions and accessions
thereto, replacements therefor, component and auxiliary parts and supplies used
or to be used in connection therewith, and all substitutes for any of the
foregoing, and all manuals, drawings, instructions, warranties and rights with
respect thereto; wherever any of the foregoing is located.

         "ERISA" shall mean the Employee Retirement Income Security Act of
1974, as amended from time to time, and any successor statute.

         "ERISA Affiliate" shall mean, with respect to any Person, any (i)
corporation which is a member of the same controlled group of corporations
(within the meaning of Section 414(b) of the Code) as the such Person, or (ii)
partnership or other trade or business (whether or not incorporated) under
common control (within the meaning of Section 414(c) of the Code) with such
Person, or (iii) member of the same affiliated service group (within the
meaning of Section 414(m) of the Code) as such Person, any corporation
described in clause (i) above or any partnership or trade or business described
in clause (ii) above.

         "Eurocurrency Liabilities" has the meaning assigned to that term in
Regulation D.

         "Eurodollar Rate" means, for any Interest Period applicable to a
Eurodollar Rate Loan, an interest rate per annum equal to the rate per annum
obtained by dividing (i) the rate per annum at which deposits in Dollars are
offered by the principal office of Citibank, N.A. in London, England to prime
banks in the London interbank market at 11:00 a.m. (London time) two Business
Days before the first day of such Interest Period in an amount substantially
equal to such Eurodollar Rate Loan and for a period equal to such Interest
Period by (ii) a percentage equal to 100% minus the Eurodollar Rate Reserve
Percentage for such Interest Period. The Eurodollar Rate for the Interest
Period for each Eurodollar Rate Loan comprising part of the same Borrowing
shall be determined by the Lender two Business Days before the first day of
such Interest Period.

                                       6
<PAGE>   12

         "Eurodollar Rate Loan" means a Loan or portion thereof which bears
interest as provided in Section 2.5(b).

         "Eurodollar Rate Reserve Percentage" for the Interest Period for any
Eurodollar Rate Loan means the reserve percentage applicable during such
Interest Period (or if more than one such percentage shall be so applicable,
the daily average of such percentages for those days in such Interest Period
during which any such percentage shall be so applicable) under regulations
issued from time to time by the Federal Reserve Board for determining the
maximum reserve requirement (including, without limitation, any emergency,
supplemental or other marginal reserve requirement) for the Lender with respect
to liabilities or assets consisting of or including Eurocurrency Liabilities
having a term equal to such Interest Period.

         "Event of Default" shall mean any of the events listed in Section 9.1.

         "Federal Reserve Board" shall mean the Board of Governors of the
Federal Reserve System and any successor thereto.

         "Fiscal Year" shall mean the fiscal year of the Borrower, which shall
be the twelve-month period ending on the last day of December, or such other
period as the Borrower may designate and the Lender shall approve in writing.

         "Fixed Charges" shall mean, for any period, for the Borrower and its
Subsidiaries on a consolidated basis, the amounts for such period of (i) Cash
Interest Expense, plus (ii) scheduled principal payments due under the Term
Note and other Funded Indebtedness (including the principal component of
Capital Lease obligations).

         "Funded Indebtedness" shall mean, without duplication, at any time of
determination, the average principal amount outstanding under the Working
Capital Facility during the most recently ended 12 consecutive months plus all
Debt of the Borrower and its Subsidiaries on a consolidated basis at such time
except for (a) Debt described in clauses (i), (iv), (vi) and (viii) of the
definition of Debt, (b) Debt outstanding under the Working Capital Facility,
and (c) Subordinated Indebtedness.

         "Funding Date" means the date the Term Loan or any Working Capital
Loan is to be made hereunder.

         "GAAP" shall mean generally accepted accounting principles set forth
in the rules, regulations, statements, opinions and pronouncements of the
American Institute of Certified Public Accountants and of the Financial
Accounting Standards Board (or agencies with similar functions of comparable
stature and authority within the accounting profession), which, subject to
Section 5.1, are applicable to the circumstances as of the date of
determination.

         "General Intangibles" shall mean and include with respect to any
Person, all of such Person's now owned and hereafter acquired causes in action,
causes of action and all other intangible personal property of every kind and
nature (other than Accounts), including, without limitation, limited
partnership interests, membership interests, corporate and other business
records, inventions, designs, patents, patent applications, service marks,
trademarks, trademark applications, trade names, trade secrets, goodwill,
registrations, copyrights, licenses, franchises, customer lists, reversions
from any Benefit Plan, tax refunds, tax refund claims, rights and claims

                                       7
<PAGE>   13

against carriers, shippers, franchisees, lessors and lessees, and rights to
indemnification, business interruption insurance and proceeds thereof,
property, casualty or any similar type of insurance and any proceeds thereof,
proceeds of insurance covering the lives of key employees on which such Person
is beneficiary, and any letter of credit, guarantee, claim, security interest
or other security held by or granted to the Borrower to secure payment by an
Account Debtor of any of the Accounts.

         "Good Faith" shall mean honesty in fact in the conduct or transaction
concerned, without regard to whether standards which might be deemed
commercially reasonable have been observed.

         "Governmental Authority" shall mean any nation or government, any
federal, state, city, town, municipality, county, local or other political
subdivision thereof or thereto and any department, commission, board, bureau,
instrumentality, agency or other entity exercising executive, legislative,
judicial, regulatory or administrative functions of or pertaining to
government.

         "Guaranty" means, with respect to any Person, all obligations of such
Person which in any manner directly or indirectly guarantee or assure, or in
effect guarantee or assure, the payment or performance of any indebtedness,
dividend or other obligation of any other Person (the "guaranteed
obligations"), or to assure or in effect assure the holder of the guaranteed
obligations against loss in respect thereof, including, without limitation, any
such obligations incurred through an agreement, contingent or otherwise: (a) to
purchase the guaranteed obligations or any property constituting security
thereof; (b) to advance or supply funds for the purchase or payment of the
guaranteed obligations or to maintain a working capital or other balance sheet
condition; (c) to lease property or to purchase any debt or equity securities
or other property or services.

         "Indemnitees" shall have the meaning ascribed to it in Section 12.9.

         "Interest Period" means, for each Eurodollar Rate Loan, the period
commencing on the date of such Loan or the conversion thereof and ending on the
last day of the period selected by the Borrower pursuant to the provisions
below. The duration of each such Interest Period shall be one, three or six
months as the Borrower may select, upon notice received by the Lender in
accordance with Section 2.3(b) or Section 2.11, as the case may be; provided,
however, that:

                           (i) whenever the last day of any Interest Period
                  would otherwise occur on a day other than a Business Day, the
                  last day of such Interest Period shall be extended to occur
                  on the next succeeding Business Day; provided, however, that
                  if such extension would cause the last day of such Interest
                  Period to occur in the next following calendar month, the
                  last day of such Interest Period shall occur on the next
                  preceding Business Day; and

                           (ii) the Borrower shall not select an Interest
                  Period for any Loan that ends after the applicable
                  Termination Date for the Credit Facility under which such
                  Loan is made.

         "Interest Rate Contracts" shall mean interest rate insurance product
agreements providing interest rate protection.

                                       8
<PAGE>   14

         "Inventory" shall mean and include, with respect to any Person, all of
such Person's now owned and hereafter acquired goods, materials, supplies,
merchandise and other personal property furnished under any contract of service
or intended for sale or lease, including, without limitation, work in process,
finished goods and materials, parts and supplies of any kind, nature or
description which are used or consumed in such Person's business or are or
might be used in connection with the manufacture, packing, shipping,
advertising, selling or finishing of such goods, merchandise and other personal
property, or are used in connection with the provision of services in such
Person's business, all returned or repossessed goods now, or at any time or
times hereafter, in the possession or under the control of such Person or
Lender, and all documents of title or documents representing the same.

         "IRS" shall mean the Internal Revenue Service, or any successor
thereto.

         "Lien" shall mean any mortgage, deed of trust, pledge, hypothecation,
assignment, deposit arrangement, security interest, encumbrance for the payment
of money, lien (statutory or other), preference, priority or other security
agreement or preferential arrangement of any kind or nature whatsoever,
including, without limitation, any conditional sale or other title retention
agreement, the interest of a lessor under a capital lease, any financial lease
having substantially the same economic effect as any of the foregoing and the
filing of any financing statement (other than a financing statement filed by a
"true" lessor pursuant to Section 9-408 of the Code or other comparable law of
any jurisdiction) naming the owner of the asset to which such Lien relates as
debtor under the Code or other comparable law of any jurisdiction.

         "Loan" shall mean a Term Loan or a Working Capital Loan.

         "Loan Documents" shall mean this Agreement and all other agreements,
instruments and documents, including, without limitation, any other security
agreements, notes, warrants, guaranties, mortgages, deeds of trust,
subordination agreements, pledges, powers of attorney, consents, assignments,
collateral assignments, letter agreements, contracts, notices, leases,
amendments, financing statements, letter of credit applications and
reimbursement agreements, and all other writings heretofore, now, or hereafter
executed by or on behalf of the Borrower or any of its Affiliates and delivered
to the Lender in connection with or relating to this Agreement (including,
without limitation, any Interest Rate Contract entered into by the Borrower
with Lender or any Affiliate of Lender), together with all agreements,
instruments and documents referred to therein or contemplated thereby, in each
case, as amended from time to time.

         "Mandatory Prepayment" shall have the meaning ascribed to it in
Section 2.4(b).

         "Multiemployer Plan" shall mean a "multiemployer plan" as defined in
Section 4001(a)(3) of ERISA which is, or within the immediately preceding six
(6) years was, contributed to by either Borrower or an ERISA Affiliate.

         "Net Income" shall mean with respect to any Person, for any period,
the net earnings (or loss) after taxes of such Person for such period taken as
a single accounting period determined in conformity with GAAP.

         "Net Worth" shall mean with respect to any Person, as at any date of
determination, the amount by which total assets of such Person exceed total
liabilities of such Person.

                                       9
<PAGE>   15

         "Notes" shall mean each and every Term Note and Working Capital Note
and any other note or notes executed by a Borrower pursuant to this Agreement.

         "Notice of Borrowing" shall mean a notice substantially in the form of
EXHIBIT A attached hereto and made a part hereof.

         "Non-Use Fee" shall have the meaning set forth in Section 2.12.

         "Notice of Conversion" shall have the meaning provided in Section
2.11(a).

         "Obligations" shall mean and include all loans, advances, debts,
liabilities, obligations, covenants and duties owing to the Lender, any
Affiliate of the Lender, any Indemnitee or any of their respective successors
and assigns, by the Borrower under or in connection with this Agreement and all
of the other Loan Documents, present or future, whether or not evidenced by any
note, guaranty or other instrument whether or not for the payment of money,
whether arising by reason of an extension of credit, opening or amendment of a
letter of credit (or payment of any draft drawn thereunder), loan, guaranty,
indemnification, foreign exchange or interest rate swap transactions or in any
other manner, whether direct or indirect (including those acquired by
assignment), absolute or contingent, due or to become due, now existing or
hereafter arising and however acquired. The term includes, without limitation,
all interest, charges, expenses, fees, attorneys' fees and disbursements and
paralegals' fees, any other sums chargeable to Borrower under this Agreement or
any other Loan Document.

         "OGA" shall mean OGA Clearinghouse I, L.L.C., a Delaware limited
liability company.

         "OGAC" shall mean The Oil & Gas Asset Clearinghouse, Inc, a Texas
corporation.

         "OGAC Entities" shall mean collectively OGAC, OGA and OGACLP.

         "OGACLP" shall mean OGAC, L.P., a Texas limited partnership.

         "Other Taxes" shall have the meaning ascribed to it in Section 2.9(b).

         "Participating Lender" means any Person who shall have been granted
the right by Lender to participate in the financing provided pursuant to this
Agreement and who shall have entered into a participation agreement with
Lender.

         "PBGC" shall mean the Pension Benefit Guaranty Corporation and any
Person succeeding to the functions thereof.

         "Pending Loans" shall mean, at any time, the aggregate principal
amount of all Working Capital Loans requested in any Notice(s) of Borrowing
previously received by the Lender but not yet advanced at such time.

         "Permitted Liens" means the Liens reflected on SCHEDULE 1.1-B attached
hereto and incorporated herein by this reference and any of the following Liens
created after the date hereof:

                           (i)      Liens for taxes not yet payable;

                                      10
<PAGE>   16

                           (ii) statutory Liens for taxes in an amount not to
                  exceed $100,000 provided that the payment of such taxes which
                  are due and payable is being contested in Good Faith and by
                  proper proceedings diligently pursued, and that reserves or
                  other appropriate provision, if any, as shall be required by
                  GAAP shall have been made therefor and that a stay of
                  enforcement of any such Lien is in effect;

                           (iii) Liens in favor of the Lender;

                           (iv) Liens upon Equipment granted or assumed in
                  connection with the acquisition of such Equipment after the
                  date hereof (including, without limitation, pursuant to
                  Capital Leases), provided, that (a) the Debt incurred to
                  finance each such acquisition is permitted by Section 7.13,
                  and (b) each such Lien attaches only to the Equipment
                  acquired with the Debt secured thereby;

                           (v) deposits under workmen's compensation,
                  unemployment insurance, social security and other similar
                  laws, or to secure the performance of bids, tenders or
                  contracts (other than for the repayment of borrowed money) or
                  to secure indemnity, performance or other similar bonds for
                  the performance of bids, tenders or contracts (other than for
                  the repayment of borrowed money) or to secure statutory
                  obligations or surety or appeal bonds, or to secure
                  indemnity, performance or other similar bonds in the ordinary
                  course of business;

                           (vi) Liens which arise by operation of law under
                  Article 2 of the UCC in favor of unpaid sellers of goods or
                  prepaying buyers of goods, or liens in items of any
                  accompanying documents or proceeds of either arising by
                  operation of law under Article 4 of the UCC in favor of a
                  collecting bank;

                           (vii) Liens arising by operation of law securing the
                  claims or demands of materialmen, mechanics, carriers,
                  warehousemen, landlords and other like Persons, provided that
                  the payment thereof is not at the time required by Section
                  7.1;

                           (viii) Liens arising from judgments, decrees or
                  attachments to the extent and only so long as such judgment,
                  decree or attachment has not caused or resulted in an Event
                  of Default;

                           (ix) easements, reservations, rights-of-way,
                  restrictions, minor defects or irregularities in title and
                  other similar Liens affecting real property not interfering
                  in any material respect with the ordinary conduct of the
                  business of Borrower and its Subsidiaries.

                           (x) Liens in favor of customs and revenue
                  authorities arising as a matter of law to secure payment of
                  customs duties in connection with the importation of goods;

                                      11
<PAGE>   17

                           (xi) Liens arising solely by virtue of any statutory
                  or common law provision relating to banker's liens, rights of
                  setoff or similar rights and remedies as to deposit accounts
                  or other funds maintained with a creditor depository
                  institution;

                           (xii) extensions or renewals of any Lien described
                  in this definition; and

                           (xiii) Liens incurred in connection with Debt
                  otherwise permitted under this Agreement.

         "Person" shall mean and include any person, employee, individual, sole
proprietorship, partnership, joint venture, trust, limited liability company,
unincorporated organization, association, corporation, institution, entity,
party or Governmental Authority.

         "Plan" shall mean an employee benefit plan defined in Section 3(3) of
ERISA in respect of which the Borrower or an ERISA Affiliate is, or within the
immediately preceding six (6) years was, an "employer" as defined in Section
3(5) of ERISA.

         "Pledge Agreements" shall mean collectively, the Stock Pledge
Agreement and the Pledge and Security Agreement.

         "Pledge and Security Agreement" shall mean that certain Pledge and
Security Agreement of even date herewith executed by each of the OGAC Entities
in favor of the Lender.

         "Property" shall mean, with respect to the Borrower or any Subsidiary,
any real or personal property, plant, building, facility, structure, equipment
or unit, or other asset owned, leased or operated by such Person and any of its
Subsidiaries, including, without limitation, such Person's Equipment and
Inventory.

         "Proprietary Rights" means, with respect to any Person, all of such
Person's now owned and hereafter arising or acquired: licenses, franchises,
permits, patents, patent rights, copyrights, works which are the subject matter
of copyrights, trademarks, service marks, trade secrets, trade names, trade
styles, patent, trademark and service mark applications, and all licenses and
rights related to any of the foregoing, and all other rights under any of the
foregoing, all extensions, renewals, reissues, divisions, continuations, and
continuations-in-part of any of the foregoing, and all rights to sue for past,
present and future infringement of any of the foregoing.

         "Regulation D" shall mean Regulation D of the Federal Reserve Board as
in effect from time to time.

         "Regulation T" shall mean Regulation T of the Federal Reserve Board as
in effect from time to time.

         "Regulation U" shall mean Regulation U of the Federal Reserve Board as
in effect from time to time.

         "Regulation X" shall mean Regulation X of the Federal Reserve Board as
in effect from time to time.

                                      12
<PAGE>   18

         "Release" shall mean any release, spill, emission, leaking, pumping,
injection, deposit, disposal, discharge, dispersal, leaching or migration into
the indoor or outdoor environment or into or out of any Property, including the
movement of Contaminants through or in the air, soil, surface water,
groundwater or Property.

         "Remedial Action" shall mean actions required to (i) clean up, remove,
treat or in any other way address Contaminants in the indoor or outdoor
environment; (ii) prevent the Release or threat of Release or minimize the
further Release of Contaminants so they do not migrate or endanger or threaten
to endanger public health or welfare or the indoor or outdoor environment; or
(iii) perform pre-remedial studies and investigations and post-remedial
monitoring and care.

         "Reportable Event" shall mean any of the events described in Section
4043 of ERISA.

         "Restricted Investment" means any acquisition of property by the
Borrower or any of its Subsidiaries in exchange for cash or other property,
whether in the form of an acquisition of stock, debt security, or other
indebtedness or obligation, or the purchase or acquisition of any other
property, or by loan, advance, capital contribution, or subscription, except
acquisitions of the following: (i) fixed assets to be used in the business of
the Borrower or a Subsidiary; (ii) goods held for use in the provision of
services by the Borrower or a Subsidiary in the ordinary course of business;
(iii) current assets arising from the rendition of services in the ordinary
course of business of the Borrower or a Subsidiary; (iv) direct obligations of
the United States of America, or any agency thereof, or obligations guaranteed
by the United States of America, provided that such obligations mature within
one year from the date of acquisition thereof; (v) certificates of deposit
maturing within one year from the date of acquisition, bankers' acceptances,
Eurodollar bank deposits, or overnight bank deposits, in each case issued by,
created by, or with a bank or trust company organized under the laws of the
United States or any state thereof having capital and surplus aggregating at
least $100,000,000; and (vi) commercial paper given the highest rating by a
national credit rating agency and maturing not more than 90 days from the date
of creation thereof.

         "Restricted Payment" shall mean, with respect to any Person, (i) any
dividend or other distribution, direct or indirect, on account of any shares of
any class of capital stock of such Person now or hereafter outstanding, except
a dividend payable solely in shares of the issuer, (ii) any redemption,
retirement, sinking fund or similar payment, purchase or other acquisition for
value, direct or indirect, of any shares of any class of capital stock of such
Person now or hereafter outstanding, and (iii) any payment made to redeem,
purchase, repurchase or retire, or to obtain the surrender of or any
outstanding warrants, options or other rights to acquire shares of any class of
capital stock of such Person now or hereafter outstanding (other than the
issuance of common stock) upon the exercise of any such warrants, options or
rights to acquire such stock.

         "SEC" shall mean the Securities and Exchange Commission and any
successor agency.

         "Securities" shall mean any stock, shares, voting trust certificates,
partnership interests (whether general or limited), bonds, debentures, notes or
other evidences of indebtedness, secured or unsecured, convertible,
subordinated or otherwise, or in general any instruments commonly known as
"securities", whether certificated or uncertificated, or any certificates of
interest, shares, or participation in temporary or interim certificates for the
purchase or acquisition of, or any right to subscribe to, purchase or acquire
any of the foregoing, but shall not include the Notes or any other evidence of
the Obligations.

                                      13
<PAGE>   19

         "Shareholders Agreement" shall mean that certain Shareholders
Agreement dated as of June 1, 1999 among, the Borrower, OGAC and the other
shareholders of OGAC.

         "Solvent" means when used with respect to any Person that (i) the fair
saleable value of all such Person's Property as a going concern, is in excess
of the total amount of its debts (including contingent liabilities); (ii) it is
able to pay its debts as they mature; (iii) it does not have unreasonably small
capital for the business in which it is engaged or for any business or
transaction in which it is about to engage; and (iv) it is not "insolvent" as
such term is defined in Section 101(31) of the Bankruptcy Code.

         "Stock Pledge Agreement" shall mean that certain Pledge Agreement of
even date herewith executed by Borrower, OGAC and OGA in favor of the Lender.

         "Stock Purchase Agreement" shall mean that certain Stock Purchase
Agreement dated as of June 1, 1999 among Borrower and the shareholders of OGAC.

         "Subordinated Indebtedness" shall mean with respect to the Borrower
and its Subsidiaries that portion of any unsecured Funded Indebtedness of the
Borrower and its subsidiaries that is incurred on terms and conditions approved
in writing by the Lender and is subordinated, in a manner approved in writing
by the Lender, as to right and time of payment of principal and interest
thereon to any and all of the Obligations.

         "Subsidiary" means, with respect to any Person, any corporation or
other entity of which more than fifty percent (50.0%) of the voting power of
the outstanding securities or interests of any class or classes, is at the
time, directly or indirectly through one or more intermediaries, owned by one
or more of such Person and/or one or more of its Subsidiaries.

         "Taxes" shall have the meaning ascribed to it in Section 2.9(a).

         "Term Loan" means the Loan described in Section 2.1(a).

         "Termination Date" shall mean July 27, 2004.

         "Term Loan Facility" shall mean the credit facility provided under
Section 2.1.

         "Term Note" shall have the meaning ascribed to it in Section 2.1(b).

         "Termination Event" shall mean (i) a Reportable Event with respect to
any Benefit Plan; (ii) the withdrawal of the Borrower or any ERISA Affiliate
from a Benefit Plan during a plan year in which the Borrower or such ERISA
Affiliate was a "substantial employer" as defined in Section 4001(a)(2) of
ERISA; (iii) the imposition of an obligation on the Borrower or any ERISA
Affiliate under Section 4041 of ERISA to provide affected parties written
notice of intent to terminate a Benefit Plan in a distress termination
described in Section 4041(c) of ERISA; (iv) the institution by the PBGC of
proceedings to terminate a Benefit Plan; (v) any event or condition which might
constitute grounds under Section 4042 of ERISA for the termination of, or the
appointment of a trustee to administer, any Benefit Plan; or (vi) the partial
or complete withdrawal of the Borrower or any ERISA Affiliate from a
Multiemployer Plan.

                                      14
<PAGE>   20

         "Third Party Collateral" shall mean any property of any Person, other
than the Borrower, which, pursuant to the terms of any of the Loan Documents,
secures the payment and performance of any portion of the Obligations.

         "UCC" means the Uniform Commercial Code (or any successor statute) of
the State of Colorado or of any other state the laws of which are required by
Section 9-103 thereof to be applied in connection with the issue of perfection
of security interests.

         "Voting Stock" means securities of any class or classes of a
corporation, the holders of which are ordinarily, in the absence of
contingencies, entitled to elect a majority of the corporate directors (or
Persons performing similar functions).

         "Working Capital Amount" shall mean $3,000,000, as such amount may be
reduced from time to time pursuant to Section 9.2 of this Agreement.

         "Working Capital Facility" shall mean the credit facility provided
under Section 2.2.

         "Working Capital Loans" shall have the meaning ascribed to it in
Section 2.2(a).

         "Working Capital Note" shall have the meaning ascribed to it in
Section 2.2(b).

         1.2 Accounting Terms. Any accounting terms used in this Agreement
which are not specifically defined shall have the meanings customarily given
them in accordance with GAAP.

         1.3 Other Terms. All other terms contained in this Agreement shall,
unless the context indicates otherwise, have the meanings provided for by the
UCC to the extent the same are defined therein.

         1.4 Computation of Time Periods. For purposes of this Agreement, in
the computation of periods of time from a specified date to a later specified
date, unless otherwise specified, the word "from" means "from and including"
and the words "to" and "until" each means "to and including."

                                  Article II.

                    LOANS AND OTHER FINANCIAL ACCOMMODATIONS

         2.1 The Term Loan Facility.

                  (a) Amount of Term Loan. Subject to the terms and conditions
         of this Agreement and in reliance upon the representations and
         warranties of the Borrower herein set forth, the Lender hereby agrees
         to loan to Borrower an amount equal to $6,000,000 (the "Term Loan").
         Upon satisfaction of the applicable conditions set forth in Article
         VIII hereof, the Lender shall make the proceeds of the Term Loan
         available to the Borrower by transferring same day funds to an account
         designated in writing by the Borrower. Initially, the Term Loan shall
         be made as a Base Rate Loan.

                                      15
<PAGE>   21

                  (b) Term Note. The Term Loan shall be evidence by a
         promissory note, substantially in the form of EXHIBIT B attached
         hereto and made a part hereof (the "Term Note").

                  (c) Use of Proceeds. Borrower shall use the proceeds of the
         Term Loan only for the purpose of funding or refinancing of a portion
         of the purchase price for its purchase of the stock of OGAC pursuant
         to the terms of the Stock Purchase Agreement and to otherwise fund
         working capital and for other corporate purposes.

                  (d) Repayment. The Term Loan shall be repaid in fifty-nine
         consecutive monthly installments of $71,428.51 commencing on August 1,
         1999 and on the first Business Day of each month thereafter and a
         final installment on the Termination Date equal to the entire unpaid
         principal balance of the Term Loan at such time.

         2.2 Working Capital Facility.

                  (a) Availability.

                           (i) Subject to the terms and conditions of this
                  Agreement and in reliance upon the representations and
                  warranties of the Borrower herein set forth, the Lender
                  hereby agrees to make revolving loans ("Working Capital
                  Loans") to the Borrower from time to time at Borrower's
                  request during the period from the date hereof to the
                  Termination Date, in an amount which shall not exceed the
                  amount, if any, by which the Working Capital Amount exceeds
                  the aggregate amount of the outstanding Loans and Pending
                  Loans requested under this Section at such time.

                           (ii) Subject to all of the terms and conditions of
                  this Agreement, Working Capital Loans may be voluntarily
                  prepaid pursuant to Section 2.4(a), and any amounts so
                  prepaid, may be reborrowed, up to the amount available under
                  this Section 2.2(a) at the time of such Borrowing.

                           (iii) Working Capital Loans made on any Funding Date
                  which constitute Eurodollar Rate Loans shall be in the
                  aggregate minimum amount of $500,000.00 and integral
                  multiples of $100,000 in excess of that amount. Working
                  Capital Loans made on any Funding Date which constitute Base
                  Rate Loans shall be in the aggregate minimum amount of
                  $50,000.00 and integral multiples of $10,000 in excess of
                  that amount.

                  (b) Working Capital Note. The Working Capital Loans shall be
         evidenced by a promissory note (a "Working Capital Note")
         substantially in the form of EXHIBIT C attached hereto and made a
         part. The Working Capital Note shall be dated as of the Funding Date
         for the Term Loan and shall mature on the Termination Date.

                  (c) Use of Proceeds. Subject to the terms and conditions
         contained herein, the Borrower shall use the proceeds of the Working
         Capital Loans for working capital and other general corporate
         purposes.

                                      16
<PAGE>   22

                  (d) Repayment. All outstanding Working Capital Loans shall be
         paid in full on the Termination Date.

         2.3 Notice of Borrowing; Making the Loans.

                  (a) Each Loan shall be made on notice, given by the Borrower
         to the Lender in writing not later than 11:00 a.m. (New York time) on
         (A) the third Business Day prior to the date of the proposed
         Borrowing, in the case of a request for a Eurodollar Rate Loan, and
         (B) the Business Day of the proposed Borrowing, in the case of a
         request for a Base Rate Loan. Each such notice of a borrowing (a
         "Notice of Borrowing") shall be substantially in the form of EXHIBIT A
         attached hereto. Any Notice of Borrowing must specify the requested
         (i) date of such Loan, (ii) type of Loan, (iii) aggregate amount of
         such Loan, (iv) applicable Interest Period for such Loan if such Loan
         is a Eurodollar Rate Loan, and (v) the account or accounts to which
         the proceeds of such Loan are to be disbursed. Upon fulfillment of the
         applicable conditions set forth in Article VIII, the Lender will make
         such funds available to the Borrower in such deposit account
         maintained with the Lender as the Borrower shall designate.

                  (b) Anything in paragraph (a) above to the contrary
         notwithstanding,

                           (i) if the Lender shall, at least one Business Day
                  before the date of any requested Borrowing, notify the
                  Borrower that the introduction of or any change in or in the
                  interpretation of any law or regulation makes it unlawful, or
                  that any central bank or other Governmental Authority makes
                  it unlawful, for the Lender to perform its obligations
                  hereunder to make Eurodollar Rate Loans; or

                           (ii) if the Lender is unable, after reasonable
                  efforts, due to prevailing market conditions, to provide
                  timely information for the determination of the Eurodollar
                  Rate, or is otherwise unable to determine the Eurodollar Rate
                  at any time, or

                           (iii) if the Lender has reasonably determined that
                  the Eurodollar Rate is inadequate to compensate the Lender,

                  then, in any such event, the right of the Borrower to select
                  Eurodollar Rate Loans shall be suspended as of the date,
                  reasonably designated by the Lender until the Lender shall
                  notify the Borrower that the circumstances causing such
                  suspension no longer exist, and each Loan shall be a Base
                  Rate Loan.

         (c) Each Notice of Borrowing shall be irrevocable and binding on the
Borrower.

         (d) The Borrower shall notify the Lender in writing of the names of
the officers and employees authorized to request any Loans on behalf of
Borrower, and shall provide the Lender with a specimen signature of each such
officer or employee. The Lender shall be entitled to rely conclusively on such
officer's or employee's authority to request a Loan on behalf of the Borrower,
until the Lender receives written notice to the

                                      17
<PAGE>   23

contrary. Notwithstanding the foregoing, the Lender shall have no duty to
verify the authenticity of the signature appearing on any written Notice of
Borrowing.

         2.4 Prepayments; Reserves.

                  (a) Voluntary Prepayments. Subject to Section 2.6, the
         Borrower may (i) at any time prepay the Working Capital Loans in whole
         or in part, subject to Section 2.6, and (ii) upon not less than two
         (2) Business Days' prior written or telephonic notice confirmed
         promptly in writing to the Lender, at any time and from time to time,
         prepay the Term Loan in whole or in part, in an aggregate minimum
         amount of $50,000 and integral multiples of $10,000 in excess of that
         amount; provided, however, that the Borrower may prepay the Term Loan
         in full without regard to such minimum amount. Any notice of
         prepayment given to the Lender under this Section 2.4(a) shall specify
         the date of prepayment, the aggregate principal amount of the
         prepayment and which Loans such prepayment is to be applied against.
         To the extent that any voluntary prepayment is made against the Term
         Note, such voluntary prepayments shall be applied to the installments
         due under the Term Note in the inverse order of maturity until paid in
         full. Notice of prepayment having been delivered as provided herein,
         the principal amount of the Loans specified in such notice shall
         become due and payable on the prepayment date.

                  (b) Mandatory Prepayments. All Obligations shall become
         immediately due and payable, at the option of the Lender upon the
         occurrence of a Change in Control, whereupon the Borrower shall repay
         the Term Loan and the Working Capital Loans in full together with all
         accrued but unpaid interest thereon and the Commitment shall
         terminate.

                  (c) Termination of Commitment. The Borrower may at any time,
         subject to Section 2.6 below, upon two (2) Business Days prior written
         notice to the Lender, terminate the Commitment.

         2.5 Interest. The Borrower shall pay interest on the unpaid principal
amount of each Loan from the date of such Loan until such principal amount
shall be paid in full, at the following intervals and at the following rates
per annum:

                  (a) Base Rate Loans. If such Loan is a Base Rate Loan, a rate
         per annum equal to the Applicable Margin for Base Rate Loans at the
         time of determination plus the Base Rate in effect from time to time,
         payable, in arrears, on the first day of each calendar month and on
         the date such Base Rate Loan shall be paid in full; and

                  (b) Eurodollar Rate Loans. If such Loan is a Eurodollar Rate
         Loan, a rate per annum equal at all times during the Interest Period
         for such Loan to the Eurodollar Rate for such Interest Period plus the
         Applicable Margin at the time of determination, payable, in arrears,
         on the first day of each calendar month, or, if earlier, on the date
         such Eurodollar Rate Loan shall be paid in full;

         provided, however, that, from and after the occurrence of an Event of
Default and unless and until such Event of Default is cured or waived, (i) the
Borrower shall not be entitled to elect that any portion of any Loan be a
Eurodollar Rate Loan; and (ii) the Borrower shall pay interest

                                      18
<PAGE>   24

on the unpaid principal amount of all Loans at the Default Rate, such interest
being payable on demand.

         2.6 Prepayment Provisions; Breakage Costs.

                  (a) The Borrower shall not voluntarily prepay any Loans other
         than Base Rate Loans. If the Borrower repays any Eurodollar Rate Loan
         prior to the last day of the applicable Interest Period for any reason
         or fails to borrow a Eurodollar Rate Loan once requested, the Borrower
         shall pay to the Lender the amount of any cost, loss or expense
         incurred by the Lender as a result of the repayment of a Eurodollar
         Rate Loan prior to the last day of the Interest Period applicable to
         such Loan including, without limitation, any cost or expense incurred
         by Lender by reason of the liquidation and reemployment of deposits or
         other funds acquired by the Lender to fund the Eurodollar Rate Loan
         being prepaid.

                  (b) If the Borrower prepays the Term Loan for any reason,
         prior to the second anniversary date of the Closing Date, the Borrower
         shall pay to Lender a prepayment fee equal to (i) during the first
         year after the Closing Date, 2% of the amount prepaid and (ii) during
         the second year after the Closing Date, 1% of the amount prepaid. If
         the Borrower terminates the Commitment as a result of obtaining
         refinancing from a Person other than the Lender prior to the second
         anniversary of the Closing Date, the Borrower should pay a termination
         fee equal to (i) during the first year after the Closing Date, 2% of
         the Working Capital Amount and (ii) during the second year after the
         Closing Date, 1% of the Working Capital Amount.

         2.7 Increased Costs; Increased Capital. In the event that the Lender
determines that compliance with any United States (including any state,
political subdivision, territory or possession thereof) or foreign law,
regulation, treaty, directive or guideline, currently or hereafter in effect,
or the interpretation or application thereof, or the compliance with any
request, guideline or directive (whether or not having the force of law) from
any United States or foreign central bank or any other Governmental Authority:

                  (a) imposes, modifies or holds applicable any reserve,
         special deposit, compulsory loan or similar requirement against, or
         imposes any other conditions with respect to assets held by, or
         deposits or other liabilities in or for the account of, advances or
         loans by, or other credit or commitment therefor extended by, or any
         other acquisition of funds by, any office of the Lender which is not
         otherwise included or accounted for in any determination of the
         Eurodollar Rate or any interest payable hereunder; or

                  (b) affects or would affect the amount of capital required or
         expected to be maintained by the Lender or any corporation controlling
         the Lender and the Lender determines that the amount of such capital
         is increased by or based upon the existence of the Lender's
         obligations to make, maintain or fund the Eurodollar Loans;

         and the result is to increase (as reasonably determined by the Lender)
the cost to the Lender of (i) agreeing to make, making, funding, renewing or
maintaining the Eurodollar Loans hereunder, or (ii) agreeing to maintain, or
its maintenance of, the Commitment hereunder, or to reduce any amount
receivable in respect of any of the foregoing, or to reduce (as determined by
the Lender) the rate of return on the Lender's or such controlling
corporation's capital (taking

                                      19
<PAGE>   25

into account the policies of the Lender or corporation with regard to capital)
("Increased Cost"), then, in any such case, the Borrower agrees to pay to the
Lender upon the Lender's demand any additional amount as may be necessary to
compensate fully the Lender for such additional cost, reduced amount
receivable, or reduced rate of return as reasonably determined by the Lender to
place the Lender in the same economic position as if such compliance had not
occurred. The Lender will promptly notify the Borrower, in writing, of the
occurrence of any of the events described in this Section 2.7. Notwithstanding
the foregoing, Lender agrees that if there is any Increased Cost with respect
to which Borrower would be obligated to compensate Lender pursuant to this
Section 2.7, Lender shall use reasonable efforts to select an alternative
lending office which would not result in any such Increased Cost to Lender;
provided, however, that Lender shall not be obligated to select an alternative
lending office if Lender determines in good faith that (i) as a result of such
selection Lender would be in violation of any applicable law, regulation,
treaty, or guideline, or would incur additional costs or expenses or (ii) such
selection would be inadvisable for regulatory reasons or inconsistent with the
interests of Lender. Notwithstanding anything to the contrary contained in this
Section 2.7, Borrower shall not be obligated to indemnify or reimburse Lender
for any Increased Costs hereunder (x) which arose or were incurred during or
are otherwise attributable to any period of time more than 180 days prior to
the date on which Lender delivered its written statement for indemnification or
reimbursement for such Increased Costs, or (ii) if such Increased Costs, or
substantially the same type of costs, are not also imposed on other borrowers
of such Lender who entered into similar credit facilities with a similar
pricing, taken as a whole, who have agreed to pay such costs, at the same time.

         2.8 Payments and Computations.

                  (a) All payments of principal, interest and fees hereunder
         and under the Notes payable to the Lender shall be made without
         condition or reservation of right and in same day funds and delivered
         to the Lender not later than 1:00 p.m. (New York time) on the date due
         to such account of the Lender as the Lender may designate; and funds
         received by the Lender after that time shall be deemed to have been
         paid on the next succeeding Business Day.

                  (b) The Borrower hereby authorizes the Lender and unless the
         Borrower has arranged for another means of timely payment satisfactory
         to the Lender, the Lender shall, if and to the extent any payment is
         due hereunder, to make a Working Capital Loan to Borrower which shall
         be a Base Rate Loan in the amount of such payment. In addition, the
         Borrower hereby authorizes the Lender, if and to the extent payment is
         due hereunder and unless the Borrower has arranged for another means of
         timely payment satisfactory to the Lender, the Lender shall charge from
         time to time against the Borrower's accounts with the Lender any amount
         so due. The Lender shall notify the Borrower of any such Loan or
         charge; provided, however, that the failure to give such notice shall
         not limit or otherwise affect the obligation of the Borrower to make
         any payment when due hereunder.

                  (c) All computations of interest and fees shall be calculated
         on the basis of a year of 360 days for the actual number of days
         (including the first day but excluding the last day) occurring in the
         period for which such interest or fees are payable. Each determination
         by the Lender of an interest rate hereunder shall be conclusive and
         binding for all purposes, absent manifest error.

                                      20
<PAGE>   26

                  (d) Whenever any payment hereunder shall be stated to be due
         on a day other than a Business Day, such payment shall be made on the
         next succeeding Business Day, and such extension of time shall in such
         case be included in the computation of payment of interest or the
         Non-Use Fee, as the case may be; provided, however, if such extension
         would cause payment of interest on or principal of Eurodollar Rate
         Loans to be made in the next following calendar month, such payment
         shall be made on the next preceding Business Day.

         2.9 Taxes.

                  (a) Any and all payments by the Borrower hereunder shall be
         made, in accordance with Section 2.8, free and clear of and without
         deduction for any and all present or future taxes, levies, imposts,
         deductions, charges or withholdings, and all liabilities with respect
         thereto, excluding taxes imposed on the Lender's income, and franchise
         taxes imposed on the Lender, by the jurisdiction under the laws of
         which the Lender is organized or any political subdivision thereof
         (all such nonexcluded taxes, levies, imposts, deductions, charges,
         withholdings and liabilities being hereinafter referred to as
         "Taxes"). If the Borrower shall be required by law to deduct any Taxes
         from or in respect of any sum payable hereunder to the Lender, (i) the
         sum payable shall be increased as may be necessary so that after
         making all required deductions (including deductions applicable to
         additional sums payable under this Section 2.9) the Lender receives an
         amount equal to the sum it would have received had no such deductions
         been made, (ii) the Borrower shall make such deductions and (iii) the
         Borrower shall pay the full amount deducted to the relevant taxing
         authority or other appropriate authority in accordance with applicable
         law.

                  (b) In addition, the Borrower agrees to pay any present or
         future stamp or documentary taxes or any other excise or property
         taxes, charges or similar levies which arise from any payment made
         hereunder or under the Notes or from the execution, delivery or
         registration of, or otherwise with respect to, this Agreement or the
         Notes (but specifically excluding, any taxes due as a result of any
         assignment or participation made by the Lender as permitted by the
         terms of Section 11.2 hereof) (hereinafter referred to as "Other
         Taxes").

                  (c) The Borrower agrees to indemnify the Lender for the full
         amount of Taxes or Other Taxes (including, without limitation, any
         Taxes or Other Taxes imposed by any jurisdiction on amounts payable
         under this Section 2.9) paid by the Lender and any liability
         (including penalties, interest and expenses) arising therefrom or with
         respect thereto. Any amounts due from the Borrower in accordance with
         the foregoing indemnification shall be paid to the Lender within
         thirty (30) days from the date the Lender makes written demand
         therefor. Notwithstanding the foregoing, however, the Lender agrees
         that it shall not pay any Taxes or Other Taxes if it has received
         written notice from the Borrower that the Borrower is contesting the
         same and for so long as the Borrower continues to contest the same in
         accordance with the terms of Section 7.1 provided that such failure to
         pay does not adversely affect the Lender's ability to obtain or
         maintain a perfected security interest in any of the Borrower's
         Property or any of the Lender's rights and remedies hereunder.

                                      21
<PAGE>   27

                  (d) If the Lender shall request, within 30 days after the
         date of any payment of Taxes, the Borrower will furnish to the Lender,
         at its address referred to on the signature page hereto, the original
         or a certified copy of a receipt evidencing payment thereof.

                  (e) Without prejudice to the survival of any other agreement
         of the Borrower hereunder, the agreements and obligations of the
         Borrower contained in this Section 2.9 shall survive the payment in
         full of principal and interest hereunder and under the Notes.

                  (f) Each Lender or Purchaser that is not a United States
         person (as such term is defined in Section 7701(a)(30) of the Code),
         shall submit to the Borrower when it becomes a Lender or Purchaser
         hereunder duly completed and signed copies of (i) Internal Revenue
         Services ("IRS") Form 1001 (relating to such Lender and entitling it
         to a complete exemption from United States withholding on all amounts
         to be received by such Lender, including fees, under this Agreement)
         and, if necessary to prevent backup withholding, IRS Form W-8
         (relating to the foreign status exemption from United States federal
         income tax backup withholding), (ii) IRS Form 4224 (relating to all
         amounts to be received by such Lender, including fees, under this
         Agreement) and, if necessary to prevent backup withholding, IRS Form
         W-9 (certification of taxpayer indemnification number), or (iii) IRS
         Form W-8 (relating to the exemption from United States federal income
         tax withholding on payments of portfolio interest under Section 871(h)
         or Section 881(c) of the Code), together with any certificate or
         statement of exemption required under the Code or the regulations
         issued thereunder to establish that such Lender or Purchaser is not
         subject to deduction or withholding of United States federal income
         tax with respect to any payments to such Lender or any interest
         payable under any of the Loan Documents. Thereafter and from time to
         time, each such Lender or Purchaser, to the extent legally entitled to
         do so, shall submit to the Borrower such additional duly completed and
         signed copies of the previously provided forms (or such successor
         forms as shall be adopted from time to time by the relevant United
         States taxing authorities) as may be (i) requested by the Borrower
         from such Lender or Purchaser and (ii) required under then-current
         United States law or regulations to avoid United States withholding
         taxes on payment in respect of amounts to be received by such Lender
         or Purchaser, including fees, under this Agreement. Upon the request
         of the Borrower, each Lender or Purchaser that is a United States
         person (as such term is defined in Section 7701(a)(30) of the Code)
         shall submit to the Borrower a certificate to the effect that it is
         such a United States person. If any Lender or Purchaser determines
         that it is unable to submit to the Borrower any form or certificate
         that such Lender or Purchaser is obligated to submit pursuant to this
         Section, or that such Lender or Purchaser is required to withdraw or
         cancel any such form or certificate previously submitted, such Lender
         or Purchaser shall promptly notify the Borrower of such fact.

                  (g) If any Lender or Purchaser shall obtain a credit with
         respect to all or part of any tax indemnified by Borrower pursuant to
         this Section 2.9, then, to the extent such items have not previously
         been taken into account in computing the amount of any payment
         pursuant to this sentence or the amount of indemnification payable
         under this Section 2.9, such Lender or Purchaser shall promptly pay to
         Borrower an amount equal to the amount of such credit, reduced by the
         amount of any prior payments by such Lender or Purchaser to, or for
         the benefit of, Borrower arising from the same claim. All computations
         required hereunder shall be made by such Lender or Purchaser acting

                                      22
<PAGE>   28

         reasonably and in good faith and the results of such computations
         shall be delivered to Borrower.

                  (h) Without affecting its right under this Section 2.9 or any
         other provision of this Agreement, each Lender and Purchaser agrees
         that if Borrower is obligated to pay taxes as are imposed on or
         measured by the net income, net profits, or franchise taxes of such
         Lender or Purchaser pursuant to this Section 2.9, such Lender or
         Purchaser shall use reasonable efforts to select an alternative
         lending office which would not result in any such tax or which would
         result in a reduction of any such tax.

         2.10 Reserved.

         2.11 Conversions.

                  (a) On the terms and subject to the conditions of this
         Agreement and provided that no Event of Default shall have occurred
         and be continuing, upon written notice to the Lender in substantially
         the form of EXHIBIT D attached hereto and made a part hereof (the
         "Notice of Conversion"), the Borrower may convert all or any portion
         not less than $500,000 of the Term Loan or any Working Capital Loan
         which is (i) a Eurodollar Rate Loan to a Base Rate Loan upon
         expiration of the applicable Interest Period, (ii) continue any
         Eurodollar Rate Loan as a Eurodollar Rate Loan upon the expiration of
         the applicable Interest Period, or (iii) convert any Base Rate Loan to
         a Eurodollar Rate Loan at any time (any such date on which any Loan is
         to be converted being referred to herein as a "Conversion Date"). Such
         Notice of Conversion shall be delivered to the Lender prior to 1:00
         p.m. (New York time) three (3) Business Days prior to the proposed
         Conversion Date if conversion to, or continuation of, a Eurodollar
         Rate Loan is requested, and prior to 11:00 a.m. (New York time) on the
         proposed Conversion Date if conversion to a Base Rate Loan is
         requested. Each proposed Conversion Date shall be a Business Day.

                  (b) If the Borrower shall fail to give notice of the duration
         of the proposed Interest Period with respect to a proposed conversion
         of an outstanding Base Rate Loan or a continuation of a Eurodollar
         Rate Loan, the Borrower shall be deemed not to have elected to convert
         the Base Rate Loan or continue the Eurodollar Rate Loan. If the
         Borrower shall fail to give a timely and complete Notice of Conversion
         with respect to an outstanding Eurodollar Rate Loan in accordance with
         this Section 2.11, the Borrower shall be deemed to have elected to
         convert such outstanding Eurodollar Rate Loan to a Base Rate Loan on
         the last day of the applicable Interest Period.

                  (c) Any Notice of Conversion given or deemed to have been
         given pursuant to this Section 2.11 shall be irrevocable.

                  (d) Each Eurodollar Rate Loan shall be converted to a Base
         Rate Loan at the end of the then applicable Interest Period if (i) an
         Event of Default has occurred and is continuing, or (ii) the Lender
         shall be unable to determine the Eurodollar Rate or shall have deemed
         the Eurodollar Rate to be inadequate or unfair (as provided in Section
         2.3(b)). If the making or maintaining of Eurodollar Rate Loans shall
         be unlawful, impossible, inadequate or unfair (as provided in Section
         2.3(b)), all Eurodollar Rate Loans then outstanding shall be converted
         into Base Rate Loans on either (i) the last day of the Interest Period
         or Interest Periods applicable to such Loans if the Lender may

                                      23
<PAGE>   29

         lawfully continue to maintain and fund such Loans until such day, or
         (ii) immediately, if the Lender may not lawfully continue to fund and
         maintain such Loans.

                  (e) Notwithstanding any provision in this Agreement to the
         contrary, Borrower shall have no more than ten (10) different Interest
         Periods outstanding for Eurodollar Rate Loans at any time; provided,
         however, in the event Lender permits additional Interest Periods, the
         Borrower shall pay to Lender an additional fee of $250 per Interest
         Period.

         2.12 Fees.

                  (a) The Borrower shall pay to the Lender an arrangement fee
         (the "Arrangement Fee") in the amount of Sixty Thousand Dollars
         ($60,000) of which $30,000 was paid with the acceptance of the
         applicable commitment letter and $30,000 shall be payable on the
         Closing Date.

                  (b) As additional compensation for Lender's costs and risks
         in making the Working Capital Loans available to Borrower, Borrower
         agrees to pay to Lender in arrears, on the first Business Day of each
         calendar quarter prior to the Termination Date and on the Termination
         Date, a fee for Borrower's non-use of available funds under the
         Working Capital Facility (the "Non-Use Fee") in an amount equal to
         0.25% per annum (calculated on the basis of a 360 day year for actual
         days elapsed) on the difference between (i) the Working Capital Amount
         and (ii) the daily average of the amount of the Working Capital Loans
         outstanding during the period for which the Non-Use Fee is due.

                                  Article III.

                                   [RESERVED]

                                  Article IV.

                                   COLLATERAL

         4.1 Grant of Security Interest.

                  (a) To secure the prompt, complete, payment and performance
         of all Obligations, the Borrower hereby grants to the Lender a
         continuing security interest in, and lien on, all of the Borrower's
         right, title and interest in any of the following property, whether
         now owned or existing or hereafter acquired or arising and wherever
         located:

                            (i) all Accounts, Contract Rights, letters of
                  credit, chattel paper, instruments, notes, documents, and
                  documents of title;

                            (ii) General Intangibles;

                            (iii) Inventory;

                            (iv) Equipment;

                                      24
<PAGE>   30

                            (v) all moneys, Securities and other investment
                  property;

                            (vi) deposit accounts, credits, and balances with
                  and other claims against the Lender or any of its affiliates
                  or any other financial institution with which the Borrower
                  maintains deposits;

                            (vii) all books, records and other property relating
                  to or referring to any of the foregoing, including, without
                  limitation, all books, records, ledger cards, data processing
                  records, computer software and other property and general
                  intangibles at any time evidencing or relating to any of the
                  foregoing; and

                            (viii) all accessions to, substitutions for and
                  replacements, products and proceeds of any of the foregoing,
                  including, but not limited to, proceeds of any insurance
                  policies, claims against third parties, and condemnation or
                  requisition payments with respect to all or any of the
                  foregoing.

                  All of the foregoing, together with all other property in
                  which the Lender may at any time be granted a Lien to secure
                  the Obligations, is herein collectively referred to as the
                  "Collateral."

                  (b) All of the Obligations shall be secured by all of the
         Collateral.

         4.2 Intentionally Omitted.

         4.3 Perfection and Protection of Security Interest.

                  (a) The Borrower shall, at its expense, perform all steps
         reasonably requested by the Lender at any time to perfect, maintain,
         protect, and enforce its Liens in the Collateral including, without
         limitation: (i) executing and filing financing or continuation
         statements, and amendments thereof, in form and substance satisfactory
         to the Lender; (ii) delivering to the Lender the originals of all
         instruments, documents, and chattel paper, and all other Collateral of
         which the Lender determines it should have physical possession in
         order to perfect and protect the Lender's security interest therein,
         duly endorsed or assigned to the Lender without restriction; (iii)
         delivering to the Lender warehouse receipts covering any portion of
         the Collateral located in warehouses and for which warehouse receipts
         are issued; (iv) delivering to the Lender all letters of credit on
         which the Borrower is named beneficiary; and (v) taking such other
         steps as are deemed necessary by the Lender to maintain and protect
         its Liens. To the extent permitted by applicable law, the Lender may
         file, without the Borrower's signature, one or more financing
         statements disclosing its Liens. The Borrower agrees that a carbon,
         photographic, photostatic, or other reproduction of this Agreement or
         of a financing statement is sufficient as a financing statement.

                  (b) If any Collateral is at any time in the possession or
         control of any warehouseman, bailee or any agent of the Borrower, then
         the Borrower shall notify the Lender thereof and shall notify such
         Person of the Lender's security interest in such Collateral and, upon
         the Lender's request, instruct such Person to hold all such Collateral

                                      25
<PAGE>   31
         for the Lender's account subject to the Lender's instructions. If at
         any time significant operations of the Borrower's business are
         operated on or any significant Collateral is located on any premises
         that are not owned by the Borrower, then the Borrower shall use Good
         Faith efforts to obtain, at the request of the Lender, attornment
         agreements in form and substance satisfactory to the Lender with the
         owner or lessor of such premises.

                  (c) From time to time, the Borrower shall, upon the Lender's
         request, execute and deliver confirmatory written instruments pledging
         to the Lender the Collateral, but the Borrower's failure to do so
         shall not affect or limit the Lender's security interest or the
         Lender's other rights in and to the Collateral. So long as the
         Commitment is in effect or any of the Obligations remain outstanding,
         the Lender's Liens shall continue in full force and effect in all
         Collateral.

         4.4 Location of Collateral. Borrower represents and warrants to Lender
that: (a) SCHEDULE 4.4 attached hereto and incorporated herein by this
reference is a correct and complete list of the Borrower's chief executive
office, the location of its books and records, the locations of its property,
and the locations of all of its other places of business; and (b) SCHEDULE 4.4
attached hereto correctly identifies any of such facilities and locations that
are not owned by the Borrower and to the best of the Borrower's knowledge, sets
forth the names of the owners and lessors or sublessors of, and the holders of
any mortgages on, such facilities and locations. The Borrower covenants and
agrees that it will not maintain any of its property at any location other than
those listed for it on SCHEDULE 4.4 attached hereto, unless it gives the Lender
at least five (5) days' prior written notice thereof and executes any and all
financing statements and other documents that the Lender requests in connection
therewith.

         4.5 Title to, Liens on, and Sale and Use of Collateral. The Borrower
represents and warrants to the Lender and agrees with the Lender that: (a) all
Collateral is and will continue to be owned by the Borrower or the grantor
thereof, free and clear of all Liens whatsoever, except for Permitted Liens;
(b) the Borrower will, and will cause each of its Subsidiaries, to use, store,
and maintain the Collateral with all reasonable care and will use the
Collateral for lawful purposes only; and (c) the Borrower will not, and will
not permit any of its Subsidiaries, without the Lender's prior written approval
(which will not be unreasonably withheld), sell, or dispose of or permit the
sale or disposition of any Collateral, except for sales of Inventory in the
ordinary course of business, and Equipment as permitted by Section 4.9. The
inclusion of proceeds in the Collateral shall not be deemed to constitute the
Lender's consent to any sale or other disposition of the Collateral except as
expressly permitted herein.

         4.6 Access and Examination; Appraisals. The Lender may at all
reasonable times (and at any time when a Default or Event of Default exists)
have access to, examine, audit, make extracts from, copy and inspect Borrower's
and its Subsidiaries records, files, and books of account and the Collateral,
and discuss the Borrower's affairs with the Borrower's officers and management.
Borrower will deliver to the Lender any instrument necessary for the Lender to
obtain records from any service bureau or any other Person or Governmental
Authority maintaining records for the Borrower.

         4.7 Intentionally Omitted.

                                      26
<PAGE>   32

         4.8 Collection of Receivables. The Lender may at any time after the
occurrence and during the continuance of an Event of Default, by giving the
Borrower written notice, elect to require that the Accounts be paid directly to
the Lender. In such event, Borrower shall, and shall permit the Lender to,
promptly notify the account debtors or obligors under the Accounts of the
Lender's interest therein and direct such account debtors or obligors to make
payment of all amounts then or thereafter due under the Accounts directly to
the Lender. Upon receipt of any such notice from the Lender, Borrower shall
thereafter hold in trust for the Lender, all amounts and proceeds received by
it with respect to the Accounts and other Collateral and immediately and at all
times thereafter deliver to the Lender all such amounts and proceeds in the
same form as so received, whether by cash, check, draft or otherwise, with any
necessary endorsements. After the occurrence and during the continuance of an
Event of Default, the Lender may require all cash proceeds of the Collateral to
be deposited in a special noninterest bearing cash collateral account with the
Lender and held there as security for the Obligations. The Borrower shall
thereafter have no control whatsoever over said cash collateral account. The
Lender may, from time to time, apply the collected balances in said cash
collateral account to the payment of the Obligations whether or not the
Obligations shall then be due.

         4.9 Equipment. The Borrower represents and warrants to the Lender and
agrees with the Lender that all of the Equipment owned or leased by the
Borrower is and will be used or held for use in the Borrower's business (which
includes the lease of such equipment to third parties from time to time), and
is and will be fit for such purposes. The Borrower will use the Equipment in a
careful and proper manner and will comply with and conform to all governmental
laws, rules and regulations relating thereto. The Borrower shall keep and
maintain its Equipment in good operating condition and repair (ordinary wear
and tear excepted) and in Borrower's reasonable business judgment, shall make
all necessary replacements thereof so that the condition and operating
efficiency thereof will at all times be maintained and preserved, reasonable
wear and tear excepted. The Borrower shall promptly inform the Lender of any
material additions to or deletions from the Equipment. Borrower shall not
permit any Equipment to become a fixture to real property or an accession to
other personal property, unless the Lender has a valid and perfected Lien in
such real or personal property. Except for occasional sales of Equipment, the
proceeds of which represent the fair market value therefor and do not exceed in
the aggregate for any Fiscal Year $100,000, the Borrower shall not, without the
Lender's prior written consent, sell, lease as a lessor, or otherwise dispose
of any of the Equipment other than worn out or obsolete Equipment.

         4.10 Contract Rights. The Borrower shall fully perform all of its
material obligations under each material contract to which it is a party and
shall enforce all of its rights and remedies thereunder as it deems appropriate
in its business judgment; provided, however, that the Borrower shall not take
any action or fail to take any action with respect to the Contract Rights
which, in the Borrower's business judgment, exercised in Good Faith, would
result in a waiver or other loss of any material right or remedy of the
Borrower thereunder. Without limiting the generality of the foregoing, the
Borrower shall take all action necessary or appropriate to permit, and shall
not take any action which would have any material adverse effect upon, the full
enforcement of all indemnification rights under the Contract Rights. Except in
the ordinary course of business and consistent with past practices, the
Borrower shall not, without the Lender's prior written consent, modify, amend,
supplement, compromise, satisfy, release, or discharge any of the Contract
Rights, any collateral securing the same, any Person liable directly or
indirectly with respect thereto, or any agreement relating to any of the
Contract Rights or the

                                      27
<PAGE>   33

collateral therefor. The Borrower shall notify the Lender in writing, promptly
after the Borrower becomes aware thereof, of any event or fact which could give
rise to a claim by it for indemnification under any of the Contract Rights, and
shall diligently pursue such right and report to the Lender on all further
developments with respect thereto. If an Event of Default exists and the
Borrower has not cured or is unable to cure such Event of Default, then the
Lender may directly enforce any material right in the Contract Rights in its
own or the Borrower's name and may enter into such settlements or other
agreements with respect thereto as the Lender determines. In any suit,
proceeding or action brought by the Lender under any Contract Rights for any
sum owing thereunder or to enforce any provision thereof, the Borrower shall
indemnify and hold the Lender harmless from and against all expense, loss or
damage suffered by reason of any defense, setoff, counterclaims, recoupment, or
reduction of liability whatsoever of the obligor thereunder arising out of a
breach by the Borrower of any obligation thereunder or arising out of any other
agreement, indebtedness or liability at any time owing from the Borrower to or
in favor of such obligor or its successors other than expense, loss or damage
resulting from Lender's gross negligence or willful misconduct. All such
obligations of the Borrower shall be and remain enforceable only against the
Borrower and shall not be enforceable against the Lender. Notwithstanding any
provision hereof to the contrary, the Borrower shall at all times remain liable
to observe and perform all of its duties and obligations under the Contract
Rights, and the Lender's exercise of any of its rights with respect to the
Collateral shall not release the Borrower from any of such duties and
obligations. The Lender shall not be obligated to perform or fulfill any of the
Borrower's duties or obligations under the Contract Rights or to make any
payment thereunder, or to make any inquiry as to the nature or sufficiency of
any payment or property received by it thereunder or the sufficiency of
performance by any party thereunder, or to present or file any claim, or to
take any action to collect or enforce any performance, any payment of any
amounts, or any delivery of any property. Notwithstanding any provision in this
Section 4.10 to the contrary, provided no Event of Default has occurred and is
continuing, the Lender shall not be permitted to waive or release on behalf of
the Borrower any rights that the Borrower may have (whether at law or in
equity) against any other party to the Contract Rights.

         4.11 Right to Cure. The Lender may, in its discretion and at any time
after at least ten (10) days prior written notice, for the Borrower's account
and at the Borrower's expense, pay any amount not being disputed by Borrower in
Good Faith or do any act required of the Borrower hereunder or reasonably
requested by the Lender to preserve, protect, maintain or enforce the
Obligations, the Collateral or the Lender's Liens therein, and which the
Borrower fails to pay or do, including, without limitation, payment of any
judgment against the Borrower, any insurance premium, any warehouse charge, any
landlord's claim, and any other Lien upon or with respect to the Collateral.
All payments that the Lender makes under this Section 4.11 and all
out-of-pocket costs and expenses that the Lender pays or incurs in connection
with any action taken by it hereunder shall be payable on demand. Any payment
made or other action taken by the Lender under this Section 4.11 shall be
without prejudice to any right to assert an Event of Default hereunder and to
proceed thereafter as herein provided.

         4.12 Power of Attorney. The Borrower hereby appoints the Lender and
the Lender's designees as the Borrower's attorney, with power, if an Event of
Default has occurred and is continuing, to send requests for verification of
accounts to customers or account debtors and after an Event of Default has
occurred and is continuing: (a) to endorse the Borrower's name on any checks,
notes, acceptances, money orders, or other forms of payment or security that
come

                                      28
<PAGE>   34

into the Lender's possession; (b) to sign the Borrower's name on any invoice,
bill of lading, or other document of title relating to any Collateral, on
drafts against customers, on assignments of Accounts, on notices of assignment,
financing statements and other public records; (c) to notify the post office
authorities to change the address for delivery of the Borrower's mail to an
address designated by the Lender and to receive, open and dispose of all mail
addressed to the Borrower; and (d) to do all things necessary to carry out this
Agreement. The Borrower ratifies and approves all acts of such attorney.
Neither the Lender nor the attorney will be liable for any acts or omissions or
for any error of judgment or mistake of fact or law except to the extent of the
Lender's gross negligence or willful misconduct. This power, being coupled with
an interest, is irrevocable until the Commitment has been terminated and the
Obligations have been fully satisfied.

         4.13 The Lender's Rights, Duties and Liabilities. The Borrower assumes
all responsibility and liability arising from or relating to the use, sale or
other disposition of the Collateral except for liability resulting from the
Lender's or any of its respective attorney's gross negligence or willful
misconduct. The Lender and its officers, directors, employees, and agents shall
not be liable or responsible in any way for the safekeeping of any of the
Collateral except to the extent of the Lender's gross negligence or willful
misconduct with respect thereto, or for any loss or damage thereto, or for any
diminution in the value thereof, or for any act of default of any warehouseman,
carrier, forwarding agency or other person whomsoever, all of which shall be at
the Borrower's sole risk. The Obligations shall not be affected by any failure
of the Lender to take any steps to perfect its Liens or to collect or realize
upon the Collateral, nor shall loss of or damage to the Collateral release the
Borrower from any of the Obligations. After the occurrence of and during the
continuance of a Default or Event of Default, the Lender may (but shall not be
required to), without notice to or consent from the Borrower, sue upon or
otherwise collect, extend the time for payment of, modify or amend the terms
of, compromise or settle for cash, credit, or otherwise upon any terms, grant
other indulgences, extensions, renewals, compositions, or releases, and take or
omit to take any other action with respect to the Collateral, any security
therefor, any agreement relating thereto, any insurance applicable thereto, or
any Person liable directly or indirectly in connection with any of the
foregoing, without discharging or otherwise affecting the liability of the
Borrower for the Obligations or under this Agreement or any other agreement now
or hereafter existing between the Lender and the Borrower.

                                  Article V.

               BOOKS AND RECORDS; FINANCIAL INFORMATION; NOTICES

         5.1 Books and Records. The Borrower shall maintain, at all times,
correct and complete books, records and accounts in which complete, correct and
timely entries are made of its transactions in a manner necessary to insure
that the audited financial statements required to be delivered pursuant to
Section 5.2(a) shall be prepared in accordance with GAAP. The Borrower shall,
by means of appropriate entries, reflect in such accounts and in all financial
statements proper liabilities and reserves for all taxes and proper provision
for depreciation and amortization of its Property and bad debts, all in
accordance with GAAP. The Borrower shall maintain at all times books and
records pertaining to the Collateral in such detail, form and scope as the
Lender shall reasonably require, including, but not limited to, records of (a)
all payments received and all credits and extensions granted with respect to
the Accounts; and (b) all other dealings affecting the Collateral.

                                      29
<PAGE>   35

         5.2 Financial Information. The Borrower shall promptly furnish to the
Lender all such financial information as the Lender shall reasonably request,
and notify its auditors and accountants that the Lender is authorized to obtain
such information directly from them. Without limiting the foregoing, the
Borrower will furnish to the Lender, in such detail as the Lender shall
request, the following:

                  (a) As soon as available, but in any event not later than
         ninety (90) days after the close of each Fiscal Year, a copy of the
         unaudited consolidating and the audited consolidated balance sheets,
         related statements of income and operations, shareholders' equity
         (only for consolidated statements) and cash flows for the Borrower and
         its consolidated Subsidiaries for such Fiscal Year, and the
         accompanying notes thereto, setting forth in each case in comparative
         form figures for the previous Fiscal Year and the budgeted figures for
         the current Fiscal Year, all in reasonable detail, fairly presenting
         the financial position and the results of operations of the Borrower
         and its consolidated Subsidiaries as at the date thereof and for the
         Fiscal Year then ended, and prepared in accordance with GAAP. Such
         statements shall be examined in accordance with generally accepted
         auditing standards by and accompanied by a report thereon unqualified
         as to scope of independent certified public accountants selected by
         the Borrower and reasonably satisfactory to the Lender.

                  (b) As soon as available, but in any event not later than
         forty-five (45) days after the close of each fiscal quarter other than
         the fourth quarter of a Fiscal Year, a copy of the unaudited
         consolidating and consolidated balance sheets of the Borrower and its
         consolidated Subsidiaries as at the end of such quarter, and the
         related consolidating and consolidated statements of income and
         operations, shareholders' equity (only for consolidation) and cash
         flows for the Borrower and its consolidated Subsidiaries for the last
         month of such quarter and for the period from the beginning of the
         Fiscal Year to the end of such quarter, together with the accompanying
         notes thereto, all in reasonable detail, setting forth in each case in
         comparative form the budgeted figures for the current Fiscal Year,
         fairly presenting the financial position and results of operation of
         the Borrower and its consolidated Subsidiaries as at the date thereof
         and for such periods, prepared in accordance with GAAP. Such
         statements shall be certified to be correct by the chief financial or
         accounting officer of the Borrower, subject to normal year-end
         adjustments.

                  (c) With each of the audited and unaudited financial
         statements delivered pursuant to Sections 5.2(a) and 5.2(b), a
         certificate of the chief executive or chief financial officer of the
         Borrower (i) setting forth in reasonable detail the calculations
         required to establish that the Borrower was in compliance with its
         covenants set forth in Section 7.22 and Section 7.23 during the period
         covered in such financial statements and as at the end thereof, and
         (ii) stating that, except as explained in reasonable detail in such
         certificate, (A) all of the representations and warranties of the
         Borrower contained in this Agreement and the other Loan Documents are
         correct and complete as at the date of such certificate as if made at
         such time, (B) the Borrower is, at the date of such certificate, in
         compliance with all of its covenants and agreements in this Agreement
         and the other Loan Documents, and (C) no Default or Event of Default
         then exists or existed during the period covered by such financial
         statements. If such certificate discloses that a representation or
         warranty is not correct or complete, or that a covenant has not been

                                      30
<PAGE>   36

         complied with, or that a Default or Event of Default existed or
         exists, such certificate shall set forth what action the Borrower has
         taken or proposes to take with respect thereto.

                  (d) Such additional information as the Lender may from time
         to time reasonably request regarding the financial and business
         affairs of the Borrower or any Subsidiary, including, without
         limitation, projections of future operations on both a consolidated
         and consolidating basis.

         5.3 Notices to the Lender. The Borrower shall notify the Lender in
writing of the following matters at the following times:

                  (a) Immediately after becoming aware thereof, any Default or
         Event of Default.

                  (b) Immediately after becoming aware thereof, the assertion
         by a holder or holders of Debt in an outstanding principal amount in
         excess of $100,000 in the aggregate at any one time that a default
         exists with respect thereto or that the Borrower is not in compliance
         with the terms thereof, or the threat or commencement by such holder
         of any enforcement action because of such asserted default or
         non-compliance.

                  (c) Immediately after becoming aware thereof, any material
         adverse change in the Borrower's Property, business, operations, or
         condition (financial or otherwise) or any material decrease in the
         Borrower' Accounts.

                  (d) Immediately after becoming aware thereof, any pending or
         threatened action, suit, proceeding, or counterclaim by any Person, or
         any pending or threatened investigation by a Governmental Authority,
         which may materially and adversely affect the Collateral, the
         repayment of the Obligations, the Lender's rights under the Loan
         Documents, or the Borrower's Property, business, operations, or
         condition (financial or otherwise).

                  (e) Immediately after becoming aware thereof, any violation
         of any law, statute, regulation, or ordinance of Governmental
         Authority applicable to the Borrower, any Subsidiary, or their
         respective properties which may materially and adversely affect the
         Collateral, the repayment of the Obligations, the Lender's rights
         under the Loan Documents, or the Borrower's Property, business,
         operations, or condition (financial or otherwise).

                  (f) Any change in the Borrower's name, state of
         incorporation, or form of organization, at least ten (10) days prior
         thereto.

                  (g) Any Termination Event with respect to a Plan within
         fifteen (15) days after the Borrower knows or has reason to know
         thereof, and any other Reportable Event, within forty (40) days after
         the Borrower knows or has reason to know thereof, in each case
         accompanied by any materials required to be filed with the PBGC with
         respect thereto; immediately after the receipt by the Borrower or any
         ERISA Affiliate of any notice concerning the imposition of any
         withdrawal liability under Title IV of ERISA with respect to a Benefit
         Plan or a Multiemployer Plan; within ten (10) days after the

                                      31
<PAGE>   37

         Borrower or any ERISA Affiliate fails to make a required installment
         or any other required payment under Section 412 of the Code on or
         before the due date for such installment or payment, a notification of
         such failure; the establishment of any Plan not existing at the
         Closing Date, or any increase in the benefits of any existing Plan or
         the commencement of contributions by the Borrower to any Plan to which
         the Borrower was not contributing at the Closing Date, within
         fifty-five (55) days after the end of the fiscal quarter in which such
         event occurs; within fifteen (15) days after the Borrower or an ERISA
         Affiliate knows or has reason to know (i) a Multiemployer Plan has
         been terminated, (ii) the administration or plan sponsor of a
         Multiemployer Plan intends to terminate a Multiemployer Plan or (iii)
         the PBGC has instituted or will institute proceedings under Section
         4042 of ERISA to terminate a Multiemployer Plan; within forty-five
         (45) days after the Borrower or an ERISA Affiliate knows or has reason
         to know that a prohibited transaction (defined in Section 406 of ERISA
         and Section 4975 of the Code) has occurred; immediately after filing
         with the IRS a funding waiver request for any Plan, in each case
         accompanied by a copy of such request and, subsequent thereto, copies
         of all communications received by the Borrower or an ERISA Affiliate
         with respect to such request; or immediately after becoming aware
         thereof, any other event or condition regarding a Plan or the
         Borrower's or an ERISA Affiliate's compliance with ERISA which may
         materially and adversely affect the Borrower's Property, business,
         operation, or condition (financial or otherwise).

         Each notice given under this Section shall describe the subject matter
thereof in reasonable detail, and shall set forth the action that the Borrower
have taken or propose to take with respect thereto.

                                  Article VI.

                     GENERAL WARRANTIES AND REPRESENTATIONS

         The Borrower warrants and represents to Lender that all of the
Borrower's representations and warranties contained in this Agreement and the
other Loan Documents are true at the time of the Borrower' execution of this
Agreement, and shall survive the execution, delivery and acceptance hereof by
the parties hereto and the closing of the transactions described herein or
related hereto. Each request for a Loan hereunder shall constitute a
representation and warranty by Borrower, with the same effect as a certificate
delivered by the Borrower in writing, that all of the representations and
warranties made herein (other than representations and warranties which
expressly speak as of a certain date), are true and correct in all respects as
of the date of such request. Borrower warrants and represents to Lender that:

         6.1 Authorization, Validity, and Enforceability of this Agreement and
the Loan Documents. Each of the Borrower and OGAC has the corporate power and
authority to execute, deliver and perform this Agreement and the other Loan
Documents, to incur the Obligations, and to grant to the Lender, Liens upon,
and security interests in, the Collateral. Each of the Borrower and OGAC has
taken all necessary corporate action (including, without limitation, obtaining
approval of its stockholders, if necessary) to authorize its execution,
delivery, and performance of this Agreement and the other Loan Documents. No
consent, approval, or authorization of, or declaration or filing with, any
Governmental Authority, and no consent of any other Person, is required in
connection with the Borrower's execution, delivery, and performance of this

                                      32
<PAGE>   38

Agreement and the other Loan Documents, except for those already duly obtained.
Each of this Agreement and the other Loan Documents has been duly executed and
delivered by the Borrower and OGAC, and constitutes the legal, valid and
binding obligation of the Borrower and OGAC, enforceable against them in
accordance with their respective terms. The Borrower's and OGAC's execution,
delivery, and performance of the Loan Documents to which they are respectively
a party do not and will not conflict with, or constitute a violation or breach
of, or constitute a default under, or result in the creation or imposition of
any Lien upon the Property of the Borrower or OGAC by reason of the terms of
(a) any contract, mortgage, Lien, lease, agreement, indenture, or instrument to
which the Borrower or any of its Subsidiaries is a party or which is binding
upon it or its Property, (b) any judgment, law, statute, rule or governmental
regulation applicable to the Borrower or any of its Subsidiaries, or (c) the
Certificate of Incorporation or By-laws of the Borrower or any of its
Subsidiaries.

         6.2 Validity and Priority of Security Interest. To the best of the
Borrower's knowledge, the provisions of this Agreement and the other Loan
Documents create legal and valid Liens on all the Collateral in the Lender's
favor, and upon filing of the financing statements referenced on the closing
list with the appropriate filing offices and the delivery of the "Pledged
Shares" to the Lender as contemplated by the Borrower Pledge Agreement, such
Liens constitute perfected (to the extent that a lien can be perfected by
filing a UCC-1 financing statement or, in the case of the Pledged Shares, to
the extent that filing can be perfected by delivery or control thereof) and
continuing Liens on all the Collateral, having priority over all other Liens on
the Collateral except for Permitted Liens, and enforceable against the Borrower
and all third parties.

         6.3 Organization and Qualification. The Borrower and each of its
Subsidiaries (a) is duly incorporated and organized and validly existing in
good standing under the laws of the State of its incorporation, (b) is
qualified to do business as a foreign corporation and is in good standing in
all states where the failure of the Borrower to qualify to do business would
have a material adverse effect on the Borrower's or any of its Subsidiaries
ability to collect its Accounts or otherwise conduct its business or own or
lease Property in such state, and (c) has all requisite power and authority to
conduct its business and to own its Property.

         6.4 Corporate Name; Prior Transactions. None of the Borrower or its
Subsidiaries has, during the past five (5) years, been known by or used any
other corporate or fictitious name, or been a party to any merger or
consolidation, or acquired all or substantially all of the assets of any
Person, or acquired any of its property outside of the ordinary course of
business, except as set forth on SCHEDULE 6.4 attached hereto and incorporated
herein by this reference.

         6.5 Subsidiaries and Affiliates. SCHEDULE 6.5 attached hereto and
incorporated herein by this reference is a correct and complete list of the
name and relationship to the Borrower and OGAC and all of their respective
Subsidiaries and other Affiliates as of the date hereof. Each Subsidiary is (a)
duly incorporated and organized and validly existing in good standing under the
laws of its state of incorporation set forth on SCHEDULE 6.5 attached hereto,
and (b) qualified to do business as a foreign corporation and in good standing
in the states set forth opposite its name on SCHEDULE 6.5 attached hereto,
which are the only states where the failure of such Subsidiary to qualify to do
business would have a material adverse effect on such Subsidiary's ability to
collect its Accounts or otherwise conduct its business or own or lease Property
in such state.

                                      33
<PAGE>   39

         6.6 Financial Statements and Projections. The Borrower has delivered
to the Lender its and OGAC's audited balance sheets and the related statements
of income and operations, shareholders equity and cash flow for the Fiscal Year
ended December 31, 1998, and the unaudited balance sheets and the related
statements of income and operations, shareholders equity and cash flow for the
Fiscal Year to date period ended March 31, 1999. All such financial statements
have been prepared in accordance with GAAP and present accurately and fairly in
all material respects each of such entities' financial position as at the dates
thereof and its results of operations for the periods then ended. Since
December 31, 1998, there has been no event or circumstance which is likely to
have a material adverse affect on the financial condition or operations of the
businesses of such entities.

         6.7 Intentionally Omitted.

         6.8 Debt. After giving effect to the making of the Term Loan and the
Working Capital Loans to be made on the Closing Date, the Borrower and its
Subsidiaries have no Debt, except (a) the Obligations, (b) Debt set forth on
SCHEDULE 6.8 attached hereto, (c) trade payables and other contractual
obligations arising in the ordinary course of business and (d) Debt permitted
under Section 7.13.

         6.9 Real Property; Leases. To the best of Borrower's knowledge,
SCHEDULE 6.9 attached hereto and incorporated herein by this reference sets
forth a correct and complete list of all real property owned by the Borrower
and its Subsidiaries, all leases and subleases of real or personal property by
the Borrower and its Subsidiaries as lessee or sublessee, and all leases and
subleases of real or personal property by the Borrower and its Subsidiaries as
lessor or sublessor. To the best of Borrower's knowledge, each of such leases
and subleases is valid and enforceable in accordance with its terms and is in
full force and effect, and no default by any party to any such lease or
sublease which is material to the business or operations of the Borrower
exists.

         6.10 Proprietary Rights. SCHEDULE 6.10 attached hereto and
incorporated herein by this reference sets forth a correct and complete list of
all of the Proprietary Rights of the Borrower and its Subsidiaries. None of the
Proprietary Rights of the Borrower and its Subsidiaries is subject to any
licensing agreement or similar arrangement except as set forth on SCHEDULE 6.10
attached hereto. To the best of the Borrower's knowledge, none of the
Proprietary Rights of the Borrower and its Subsidiaries infringes on or
conflicts with any other Person's property, and no other Person's property
infringes on or conflicts with the Proprietary Rights. The Proprietary Rights
described on SCHEDULE 6.10 attached hereto constitute all of the property of
such type necessary to the current and anticipated future conduct of the
businesses of the Borrower and its Subsidiaries.

         6.11 Intentionally Omitted.

         6.12 Litigation. Except as set forth on SCHEDULE 6.12 attached hereto
and incorporated herein by this reference, there is no pending or (to the best
of the Borrower's knowledge) threatened, action, suit, proceeding, or
counterclaim by any Person, or investigation by any Governmental Authority, or
any basis for any of the foregoing, which may materially and adversely affect
the Collateral, the repayment of the Obligations, the Lender's rights under the
Loan Documents, or the Borrower's and its Subsidiaries Property, business,
operations, or condition (financial or otherwise), taken as a whole.

                                      34
<PAGE>   40

         6.13 Restrictive Agreements. Neither the Borrower nor any of its
Subsidiaries is a party to any contract or agreement, and is not subject to any
charter or other corporate restriction, which affects its ability to execute,
deliver, and perform its obligations under the Loan Documents and repay the
Obligations or which materially and adversely affects or, insofar as the
Borrower can reasonably foresee, could materially and adversely affect, the
Borrower's or any of its Subsidiaries Property, business, operations, or
condition (financial or otherwise), or would in any respect materially and
adversely affect the Collateral, the repayment of the Obligations, the Lender's
rights under the Loan Documents, or the Borrower's or any of its Subsidiaries
Property, business, operations, or condition (financial or otherwise), taken as
a whole.

         6.14 Labor Disputes. Except as set forth on SCHEDULE 6.14, there is no
collective bargaining agreement or other labor contract covering employees of
the Borrower or any of its Subsidiaries; no such collective bargaining
agreement or other labor contract is scheduled to expire during the term of
this Agreement and, to the best of the Borrower's knowledge, no union or other
labor organization is seeking to organize, or to be recognized as, a collective
bargaining unit of employees of the Borrower or any of its Subsidiaries or for
any similar purpose, and there is no pending or (to the best of the Borrower's
knowledge) threatened, strike, work stoppage, material unfair labor practice
claim, or other material labor dispute against or affecting the Borrower, or
any of its Subsidiaries or their respective employees.

         6.15 Environmental, Health and Safety Laws. Except as disclosed on
SCHEDULE 6.15 attached hereto, in the ordinary course of its business, the
officers of the Borrower consider the effect of Environmental Laws on the
business of the Borrower and its Subsidiaries, in the course of which they
identify and evaluate potential risks and liabilities accruing to the Borrower
due to Environmental Laws. On the basis of this consideration, the Borrower has
concluded that compliance with Environmental Laws cannot reasonably be expected
to have a Material Adverse Effect. Neither the Borrower nor any Subsidiary has
received any notice to the effect that its operations are not in material
compliance with any of the requirements of applicable Environmental Laws or are
the subject of any federal or state investigation evaluating whether any
remedial action is needed to respond to a release of any toxic or hazardous
waste or substance into the environment, which noncompliance or remedial action
could reasonably be expected to have a Material Adverse Effect.

         6.16 No Violation of Law. Neither the Borrower nor any of its
Subsidiaries is in violation of any law, statute, regulation, ordinance,
judgment, order, or decree applicable to it which violation would in any
respect materially and adversely affect the Collateral, the repayment of the
Obligations, the Lender's rights under the Loan Documents, or the Borrower's
nor any of its Subsidiaries Property, business, operations, or condition
(financial or otherwise), taken as a whole.

         6.17 No Default. Neither the Borrower nor any of its Subsidiaries is
in default with respect to any note, indenture, loan agreement, mortgage,
lease, deed, or other agreement to which it is a party or by which it is bound,
which default would materially and adversely affect the Collateral, the
repayment of the Obligations, any Lender's rights under the Loan Documents, or
the Borrower's or any of its Subsidiary's Property, business, operations, or
condition (financial or otherwise).

                                      35
<PAGE>   41

         6.18 ERISA.

                  (a) Neither the Borrower nor any ERISA Affiliate has or
         contributes to any Plan other than those listed on SCHEDULE 6.18
         attached hereto and incorporated herein by this reference.

                  (b) Except as provided on SCHEDULE 6.18 attached hereto, no
         Benefit Plan has been terminated or partially terminated or is
         insolvent or in reorganization, nor have any proceedings been
         instituted to terminate or reorganize any Plan.

                  (c) Neither the Borrower nor any ERISA Affiliate has
         withdrawn from any Multiemployer Plan in a complete or partial
         withdrawal, nor has a condition occurred which if continued would
         result in a complete or partial withdrawal.

                  (d) Neither the Borrower nor any ERISA Affiliate has incurred
         any withdrawal liability, including contingent withdrawal liability,
         to any Benefit Plan pursuant to Title IV of ERISA as of December 31,
         1995.

                  (e) Neither the Borrower nor any ERISA Affiliate has any
         liability to the PBGC other than for required insurance premiums which
         have been paid when due.

                  (f) No Reportable Event has occurred with respect to a
         Benefit Plan.

                  (g) No Benefit Plan has an "accumulated funding deficiency"
         (whether or not waived) as defined in Section 302 of ERISA or in
         Section 412 of the Code.

                  (h) Except as provided on SCHEDULE 6.18 attached hereto, to
         the best of the Borrower's knowledge each Plan is in substantial
         compliance with ERISA, and neither the Borrower nor any ERISA
         Affiliate has received any notice asserting that a Plan is not in
         compliance with ERISA.

                  (i) Except as provided on SCHEDULE 6.18 attached hereto, each
         Plan which is intended to be a qualified Plan has been determined by
         the IRS to be qualified under Section 401(a) of the Code as currently
         in effect and neither the Borrower nor any ERISA Affiliate knows or
         has reason to know why each such plan should not continue to be so
         qualified, and each trust related to such Plan has been determined to
         be exempt from federal income tax under Section 501(a) of the Code.

                  (j) Except as provided on SCHEDULE 6.18 attached hereto,
         neither the Borrower nor any ERISA Affiliate maintains or contributes
         to any employer welfare benefit plan within the meaning of Section
         3(1) of ERISA which provides lifetime benefits to retirees.

                  (k) Neither the Borrower nor any ERISA Affiliate has failed
         to make a required installment under subsection of Section 412 of the
         Code or any other payment required under Section 412 of the Code on or
         before the due date for such installment or other payment.

                                      36
<PAGE>   42

                  (l) Neither the Borrower nor any ERISA Affiliate is required
         to provide security to a Benefit Plan under Section 401(a)(29) of the
         Code due to a Plan amendment that results in an increase in current
         liability for the plan year.

                  (m) To the best of Borrower's knowledge, neither the
         Borrower, nor any ERISA Affiliate, nor any other "party-in-interest"
         or "disqualified person" has engaged in a "prohibited transaction," as
         such terms are defined in Section 4975 of the Code and Section 406 of
         ERISA, in connection with any Plan or any other employee benefit plan
         to which the Borrower or any ERISA Affiliate is, or within the
         immediately preceding six (6) years was, an "employer" as defined in
         Section 3(5) of ERISA or has taken or failed to take any action which
         would constitute or result in a Termination Event.

                  (n) To the best of Borrower's knowledge, neither the Borrower
         nor any ERISA Affiliate has failed to comply with the health care
         continuation coverage requirements of Section 4980B of the Code in
         respect of employees and former employees of the Borrower or such
         ERISA Affiliate and their dependant and beneficiaries which alone or
         in the aggregate would subject the Borrower or such ERISA Affiliate to
         any material liability.

                  (o) To the best knowledge of the Borrower or any ERISA
         Affiliate after due inquiry, the consummation of the transactions
         contemplated by the Acquisition shall not result in any liability to
         the Borrower or any ERISA Affiliate under any employment-related
         agreement, contract or arrangement, whether written or oral, including
         without limitation, any severance pay agreement. The liability of the
         Borrower or any ERISA Affiliate to make payments to any employee on
         account of termination of employment under individual employment or
         severance agreements does not in the aggregate give rise to any
         material liability to the Borrower or such ERISA Affiliate.

         6.19 Taxes. The Borrower has filed all tax returns and other reports
which it was required by law to file on or prior to the date hereof and has
paid all taxes assessments, fees, and other governmental charges, and penalties
and interest, if any, against it or its Property, income, or franchise, that
are due and payable except where the failure to do so could not, individually
or in the aggregate, have a material adverse effect on the business,
operations, properties, assets or condition (financial or otherwise) of the
Borrower.

         6.20 Investment Act. The Borrower is not an "investment company" nor
an "affiliated person" of, or "promoter" or "principal underwriter" for, an
"investment company," as such terms are defined in the Investment Company Act
of 1940, as amended (15 U.S.C. Section 80(a)(l), et seq.). The making of the
Working Capital Loans, the Term Loan, and other financial accommodations
hereunder by the Lender, the application of the proceeds and repayment thereof
by the Borrower and the consummation of the other transactions contemplated by
this Agreement and the Loan Documents do not violate any provisions of such Act
or any rule, regulation or order issued by the Securities and Exchange
Commission thereunder.

         6.21 Margin Securities. The Borrower does not own any "margin
security" (as that term is defined in Regulations U) and the proceeds of the
Working Capital Loans, the Term Loan, and the other financial accommodations
made pursuant to this Agreement will be used only for the purposes contemplated
hereunder. None of the transactions contemplated by this Agreement, or the Loan
Documents will violate Regulations T, U or X. None of the Working

                                      37
<PAGE>   43

Capital Loans, the Term Loan, or the other financial accommodations hereunder
will be used, directly or indirectly, for the purpose of purchasing or carrying
any margin security, for the purpose of reducing or retiring any Debt or other
Person's indebtedness which was originally incurred to purchase or carry any
margin security, or for any other purpose which might cause any such loan or
other financial accommodation to be considered a "purpose credit" within the
meaning of Regulation T, U or X. The Borrower will neither take nor permit any
agent acting on its behalf to take any action which might cause any
transaction, obligation or right created by this Agreement, or any document or
instrument delivered pursuant hereto, to violate any regulation of the Federal
Reserve Board.

         6.22 Disclosure. Neither this Agreement nor any document or statement
furnished to the Lender by or on behalf of the Borrower or in contemplation of
this Agreement or in connection herewith contains any untrue statement of a
material fact or omits to state any material fact necessary in order to make
the statements contained herein or therein not materially misleading.

                                 Article VII.

                                   COVENANTS

         The Borrower covenants that, so long as any of the Obligations remain
outstanding or the Commitment is in effect unless the Lender shall otherwise
consent in writing:

         7.1 Taxes and Other Obligations. The Borrower shall, and shall cause
each of its Subsidiaries to (a) file when due all tax returns and other reports
which it is required to file (taking into account any allowed extensions), (b)
pay, or provide for the payment, when due, of all taxes, fees, assessments and
other governmental charges against it or upon its Property, income and
franchises, make all required withholding and other tax deposits, and establish
adequate reserves for the payment of all such items, and provide to the Lender,
upon request, satisfactory evidence of its timely compliance with the foregoing
and (c) pay when due all claims of materialmen, mechanics, carriers,
warehousemen, landlords and other like Persons, and all other indebtedness owed
by it and perform and discharge in a timely manner all other obligations
undertaken by it; provided, however, that the Borrower and its Subsidiaries
need not pay any tax, fee, assessment, governmental charge, or Debt, or
discharge any other obligation, that any of them is contesting in Good Faith by
appropriate proceedings diligently pursued, and for which adequate reserves are
maintained, so long as no Lien, other than a Permitted Lien, results from such
non-payment.

         7.2 Corporate Existence and Good Standing. The Borrower shall, and
shall cause each of its Subsidiaries to, maintain its corporate existence and
its qualification and good standing in all states necessary to conduct its
business and own its Property, and shall obtain and maintain all licenses,
permits, franchises and governmental authorizations necessary to conduct its
business and own its Property.

         7.3 Compliance with Law and Agreements. The Borrower shall, and shall
cause each of its Subsidiaries to, comply with the terms and provisions of each
judgment, law, statute, rule, and governmental regulation applicable to it and
each contract, mortgage, lien, lease, indenture, order, instrument, agreement,
or document to which it is a party or by which it is bound, the failure to
comply with which, whether considered individually or when aggregated with all
other

                                      38
<PAGE>   44

failures, is likely to have a material adverse effect on the ability of the
Borrower to perform its obligations under this Agreement, or on the business,
operations, properties or condition (financial or otherwise) of the Borrower,
taken as a whole; provided, however, that the Borrower shall have the right to
contest the imposition of such laws, rules, regulations, court orders, decrees
and governmental agency orders if such contest is made in Good Faith and
diligently pursued by proper proceedings, adequate reserves with respect
thereto have been established in accordance with GAAP, and such contest could
not reasonably be expected to have a material adverse affect on the ability of
the Borrower to perform its obligations under this Agreement, or the business,
operations, properties or condition (financial or otherwise) of the Borrower,
taken as a whole.

         7.4 Maintenance of Property. The Borrower shall, and shall cause each
of its Subsidiaries to, maintain all of its Property necessary and useful in
its business in good operating condition and repair, ordinary wear and tear
excepted.

         7.5 Insurance.

                  (a) The Borrower shall maintain, and shall cause each of its
         Subsidiaries to maintain, with financially sound and reputable
         insurers, insurance against loss or damage by fire with extended
         coverage; public liability and third party property damage; and such
         other hazards or of such other types as is customary for Persons
         engaged in the same or similar business, as the Lender shall
         reasonably specify, in amounts, and under policies reasonably
         acceptable to the Lender.

                  (b) The Borrower shall cause the Lender to be named in each
         such policy as secured party or mortgagee and lender's loss payee or
         additional insured, as appropriate, in a manner acceptable to the
         Lender. Each policy of insurance shall contain a clause or endorsement
         requiring the insurer to give not less than thirty (30) days' prior
         written notice to the Lender in the event of cancellation of the
         policy for any reason whatsoever and a clause or endorsement stating
         that the interest of the Lender shall not be impaired or invalidated
         by any act or neglect of the Borrower, any of its Subsidiaries, or the
         owner of any premises for purposes more hazardous than are permitted
         by such policy. All premiums for such insurance shall be paid by the
         Borrower or their Subsidiaries when due, and certificates of insurance
         and, if requested, photocopies of the policies shall be delivered to
         the Lender.

                  (c) The Borrower shall promptly notify the Lender of any
         material loss, damage, or destruction to the Collateral or arising
         from its use, whether or not covered by insurance. In the absence of
         any Default or Events of Default, the Borrower shall have the right to
         determine, whether and to what extent such proceeds shall be used for
         repair or replacement. If, however, any Default or Event of Default
         shall be continuing, the Lender may determine, in its sole discretion,
         whether the proceeds shall be used for repair or replacement. If
         neither an Event of Default nor a Default exists, the Borrower or its
         Subsidiary, as the case may be, may negotiate a settlement regarding
         such proceeds with the insurance company and the Lender shall forward
         such proceeds to the Borrower. If, however, an Event of Default or a
         Default exists, the Lender shall collect the insurance proceeds
         directly and neither the Borrower nor its Subsidiary, as the case may
         be, shall

                                      39
<PAGE>   45

         enter into any settlement agreement with the applicable insurance
         company without the prior written consent of Lender, which consent
         shall not be unreasonably withheld.

                  (d) If an Event of Default shall exist, Lender may, and if a
         decision to not rebuild or replace is made, the Lender shall, apply
         the proceeds of insurance to the payment of the Obligations.

         7.6 Intentionally Omitted.

         7.7 Environmental, Health and Safety Laws. The Borrower shall, and
shall cause each of its Subsidiaries to, conduct its business in compliance in
all material respects with all health and safety laws and Environmental Laws
applicable to it, including, without limitation, those relating to the
generation, handling, use, storage, and disposal of hazardous and toxic wastes
and substances. The Borrower shall, and shall cause each of its Subsidiaries
to, take prompt and appropriate action to respond to any non-compliance with
health and safety laws and Environmental Laws and shall regularly report to the
Lenders on such response. Without limiting the generality of the foregoing,
whenever the Borrower gives notice to the Lender pursuant to Section 5.3(g),
the Borrower shall, at the Lender's request and the Borrower's expense (a)
cause an independent environmental engineer acceptable to the Lender to conduct
such tests of the site where the noncompliance or alleged non-compliance with
Environmental Laws has occurred and prepare and deliver to the Lender a report
setting forth the results of such tests, a proposed plan for responding to any
environmental problems described therein, and an estimate of the costs thereof,
and (b) provide to the Lender a supplemental report of such engineer whenever
the scope of the environmental problems, or the response thereto or the
estimated costs thereof, shall change.

         7.8 ERISA.

                  (a) For each Plan adopted by the Borrower or any ERISA
         Affiliate, the Borrower or such ERISA Affiliate shall (i) use its best
         efforts to seek and receive a determination letter from the IRS that
         such Plan is qualified under Section 401(a) of the Code (unless such
         Plan is a master or prototype plan), and (ii) from and after the
         adoption of any such Plan, use its best efforts to cause such Plan to
         be qualified under Section 401(a) of the Code and to be administered
         in all material respects in accordance with the requirements of ERISA
         and Section 401(a) of the Code, and (iii) not take any action which
         would cause such Plan not to be qualified under Section 401(a) of the
         Code or not to be administered in all material respects in accordance
         with the requirements of ERISA and Section 401(a) of the Code.

                  (b) The Borrower shall not, and shall not permit any ERISA
         Affiliate, to:

                           (i) Engage in any transaction for which an exemption
                  is not available or has not been previously obtained from the
                  DOL in connection with which the Borrower or any ERISA
                  Affiliate could be subject to either a civil penalty assessed
                  pursuant to Section 502(i) of ERISA or tax imposed by Section
                  4975 of the Code;

                                      40
<PAGE>   46

                           (ii) Permit to exist any accumulated funding
                  deficiency (whether or not waived), as defined in Section 302
                  of ERISA and Section 412 of the Code;

                           (iii) Fail to pay timely required contributions or
                  annual installments due with respect to any waived funding
                  deficiency to any Benefit Plan;

                           (iv) Fail to make any payments to any Multiemployer
                  Plan which the Borrower or any ERISA Affiliate may be
                  required to make under any agreement relating to such
                  Multiemployer Plan, or any law pertaining thereto;

                           (v) Terminate or permit an ERISA Affiliate to
                  terminate a Benefit Plan or withdraw or partially withdraw
                  from, or permit an ERISA Affiliate to withdraw or partially
                  withdraw from, any Multiemployer Plan and fail to pay any
                  liability of the Borrower or an ERISA Affiliate under Title
                  IV of ERISA;

                  (c) Fail to pay any required installment under subsection of
         Section 412 of the Code or any other payment required under Section
         412 of the Code on or before the due date for such installment or
         other payment; or

                           (i) Amend a Benefit Plan resulting in an increase in
                  current liability for the plan year such that the Borrower or
                  an ERISA Affiliate is required to provide security to such
                  Benefit Plan under Section 401(a)(29) of the Code.

         7.9 Mergers, Consolidations or Sales. Neither the Borrower nor any of
its Subsidiaries shall enter into any transaction of merger, reorganization, or
consolidation, or transfer, sell, assign, lease, or otherwise dispose of all or
any material part of its Property, or wind up, liquidate or dissolve, or agree
to do any of the foregoing, except for sales of Equipment as otherwise
permitted hereunder.

         7.10 Restricted Payments; Capital Change. Neither the Borrower nor any
of its Subsidiaries shall (a) directly or indirectly declare or make, or incur
any liability to make, any Restricted Payment, except dividends to the Borrower
by OGAC or any other Subsidiary wholly owned by the Borrower or by one or more
other Subsidiaries that are wholly owned by the Borrower or (b) make any change
in its capital structure which could adversely affect the repayment of the
Obligations.

         7.11 Transactions Affecting Collateral or Obligations. Neither the
Borrower nor any of its Subsidiaries shall enter into any transaction which
materially and adversely affects the Collateral or the Borrower's ability to
repay the Obligations.

         7.12 Guaranties. Neither the Borrower nor any of its Subsidiaries
shall make, issue, or become liable on any guaranty, except guaranties in favor
of the Lender.

                                      41
<PAGE>   47

         7.13 Debt. Neither the Borrower nor any Subsidiary shall incur or
maintain any Debt, other than, (a) the Obligations; (b) trade payables and
contractual obligations to suppliers, customers and others incurred in the
ordinary course of business, including real property leases which are not
Capital Leases; (c) Debt incurred to finance the purchase of Equipment
constituting Capital Expenditures, so long as (i) the aggregate principal
amount of such Debt at any time outstanding (regardless of when the same
becomes due and payable) shall not exceed $300,000, (ii) the rate at which
interest accrues on such Debt does not exceed the market rate of interest for
similar transactions at such time, and (iii) such Debt would not, after giving
effect to such Debt on a pro forma basis, cause any Default or Event of
Default; (d) other Debt existing on the Closing Date and reflected on SCHEDULE
6.8 hereof; and (e) extensions, renewals, refundings, refinancings,
modifications, amendments and restatements of any of the items in (c) or (d)
above.

         7.14 Prepayment. The Borrower shall not voluntarily prepay (a) any
Funded Indebtedness, except the Obligations in accordance with the terms hereof
unless such prepayment, after giving effect to such prepayment on a proforma
basis, does not cause any Default or Event of Default or (b) any Subordinated
Indebtedness.

         7.15 Transactions with Affiliates. Except as set forth below, neither
the Borrower nor any of its Subsidiaries shall sell, transfer, distribute, or
pay any money or its Property, including, but not limited to, any fees or
expenses of any nature (including, but not limited to, any fees or expenses for
management services), to any Affiliate of the Borrower, or lend or advance
money or its Property to any Affiliate of the Borrower, or invest in (by
capital contribution or otherwise) or purchase or repurchase any stock or
indebtedness, or any of its Property, of any Affiliate of the Borrower, or
become liable on any Guaranty of the indebtedness, dividends, or other
obligations of any Affiliate of the Borrower except (a) actual expenses
incurred and approved in advance in writing by the Lender; (b) those
transactions described on Schedule 7.15 hereof; (c) reimbursement of actual and
reasonable out-of-pocket expenses incurred by employees or directors of the
Borrower in the ordinary course of the Borrower's business; (d) Guaranties in
favor of the Lender; (e) transactions in the ordinary course of Borrower's or
its Subsidiaries' business and upon fair and reasonable terms, no less
favorable to Borrower than would obtain in a comparable arm's length
transaction with a person not an Affiliate of Borrower and (f) certain
inter-company loans in connection with any investment set forth in Section
7.20(d), provided the Lender consents to such loan, which consent shall not be
unreasonably withheld and the note evidencing such loan shall be endorsed to
the Lender.

         7.16 Business Conducted. The Borrower and its Subsidiaries shall not
engage, directly or indirectly in any line of business other than the
businesses in which the Borrower and the OGAC Entities are engaged in on the
Closing Date and any business related or incidental thereto or in facilitation
thereof.

         7.17 Liens. Neither the Borrower nor any of its Subsidiaries shall
create, incur, assume, or permit to exist any Lien on any Property now owned or
hereafter acquired by any of them, except Permitted Liens.

         7.18 Sale and Leaseback Transactions. Neither the Borrower nor any of
its Subsidiaries shall directly or indirectly, enter into any arrangement with
any Person providing for the Borrower or a Subsidiary to lease or rent Property
that the Borrower or a Subsidiary has or

                                      42
<PAGE>   48

will sell or otherwise transfer to such Person if such property represents a
substantial portion of such entity's assets.

         7.19 New Subsidiaries. The Borrower shall not, directly or indirectly,
organize or acquire any Subsidiary except as otherwise permitted under Section
7.20.

         7.20 Restricted Investments. Neither the Borrower nor any of its
Subsidiaries shall make any Restricted Investment other than (a) investments in
OGAC which shall be assigned to the Lender, (b) investments in EBCO in the form
of loans not to exceed $900,000 in the aggregate and in the form of equity in
the amount of $1,250,000, provided such equity constitutes at least 50% of the
equity of EBCO and provided further that Lender receives financial statements
of EBCO satisfactory to Lender, (c) investments in Strataweb Systems Corp. of
Canada in the form of equity in the amount of $500,000 provided such equity
constitutes at least 51% of the equity in Strataweb Systems; (d) other equity
investments, not to exceed in the aggregate $2,000,000, and (e) any other
investment for which the Borrower has obtained the Lender's consent to such
investment, which consent shall not be unreasonably withheld, provided that
after giving effect to such investments in clauses (b) (c), (d) or (e), (w) no
Default or Event of Default exists, (x) the interest representing such
investment is pledged to the Lender, (y) no additional indebtedness shall be
incurred other than as permitted in above, and (z) the Lender will be granted a
guaranty of the Obligations from each such entity and lien on all of such
entity's assets.

         7.21 Reserved.

         7.22 Consolidated Debt Service Coverage Ratio. The Borrower and its
consolidated Subsidiaries on a consolidated basis shall maintain as at the end
of each fiscal quarter for the 12 consecutive month then ended a Consolidated
Debt Service Coverage Ratio not less than 1.50 to 1.0, provided that the
Borrower and its consolidated Subsidiaries shall maintain for the fiscal
quarter for the shorter period from June 1, 1999 (the "Inception Date") to
September 30, 1999, a Consolidated Debt Service Coverage Ratio not less than
1.20 to 1.0.

         7.23 Consolidated Leverage Ratio. The Borrower and its Subsidiaries on
a consolidated basis shall maintain as at the end of each fiscal quarter for
the 12 consecutive month then ended a Consolidated Leverage Ratio not greater
than 1.0 to 1.0.

         7.24 Year 2000. The Borrower will take and will cause its Subsidiaries
to take all such actions as are reasonably necessary to successfully implement
a realistic and achievable program for remediating Year 2000 Issues on a timely
basis and to assure that Year 2000 Issues will not have a material adverse
effect. At the reasonable request of the Lender, the Borrower will provide a
description of such program, together with any updates or progress report with
respect thereto. For purposes of this Section 7.24, "Year 2000 Issues" means
anticipated costs, problems and uncertainties associated with the inability of
certain computer applications to effectively handle data including dates on and
after January 1, 2000, as such inability affects the business, operations and
financial condition of the Borrower and its Subsidiaries.

         7.25 Use of Proceeds. The Borrower can, and will cause each Subsidiary
to, use the proceeds (i) of the Term Loan to fund or refinance a portion of the
acquisition of OGAC and to otherwise fund the working capital and for other
corporate purposes and (ii) of the Working Capital Loans to fund working
capital and for other corporate purposes.

                                      43
<PAGE>   49

                                 Article VIII.

                             CONDITIONS OF LENDING

         8.1 Conditions Precedent to Making of Loans. The obligation of the
Lender to make the initial Loans is subject to the following conditions
precedent having been satisfied in a manner satisfactory to the Lender:

                  (a) The Borrower shall have performed and complied with all
         covenants, agreements and conditions contained herein which are
         required to be performed or complied with by the Borrower before or on
         the Funding Date for the Term Loan and any Working Capital Loans
         initially requested by Borrower (including, without limitation, the
         execution and deliver of the Term Note and the Working Capital Note).

                  (b) The Lender shall have received a certificate dated the
         Closing Date and signed by the president or a vice president and the
         chief financial officer or treasurer of Borrower certifying that the
         conditions specified in this Section 8.1 have been fulfilled.

                  (c) The Borrower shall have caused the following to be
         delivered to the Lender, all such items to be in form and substance
         satisfactory to the Lender, and to be executed by all parties thereto
         when the nature of such items so requires:

                           (i) a copy of this Agreement and each of the Term
                  Note and the Working Capital Note duly executed by the
                  Borrower;

                           (ii) the Pledge Agreements duly executed by the
                  parties thereto;

                           (iii) UCC financing statement and other documents
                  Lender requires to perfect the security interests granted in
                  the Collateral;

                           (iv) a UCC lien, tax lien and judgment search
                  against each of the Borrower and OGAC with results
                  satisfactory to the Lender;

                           (v) such officer's certificates, certificates of
                  incumbency and certified resolutions of Borrower and each of
                  the OGAC Entities evidencing the requisite authority of each
                  such entity to execute, deliver and perform the Loan
                  Documents to which they are a party;

                           (vi) a copy of each of the Stock Purchase Agreement,
                  the Investors Agreement and Shareholder Agreement, in each
                  case, in form and substance satisfactory to the Lender and
                  certified to be a true and correct copy and in full force and
                  effect by an officer of Borrower;

                           (vii) a certificate of an officer of Borrower
                  certifying that the transactions contemplated under the Stock
                  Purchase Agreement have been consummated in accordance with
                  the terms thereof;

                                      44
<PAGE>   50

                           (viii) a proforma balance sheet of the Borrower and
                  OGAC on a consolidated basis, after giving effect to the
                  making of the initial Loans hereunder;

                           (ix) copies of the organizational documents of the
                  Borrower and each of the OGAC Entities certified by the
                  Secretary of State of the state of its organization;

                           (x) evidence of insurance as required under this
                  Agreement;

                           (xi) interim financial statements for each of the
                  Borrower and OGAC as at May 31, 1999 together with
                  projections of cash flow for the period through the
                  Termination Date, satisfactory to the Lender;

                           (xii) a financial condition certificate in form and
                  substance satisfactory to the Lender executed by the chief
                  financial officer of OGAC;

                           (xiii) a satisfactory opinion of Borrower's counsel;
                  and

                           (xiv) a satisfactory opinion of the OGAC Entities'
                  counsel.

                  (d) All proceedings taken in connection with the execution of
         this Agreement, the Notes, all other Loan Documents and all documents
         and papers relating thereto shall be satisfactory to the Lender. The
         Lender shall have received copies of such documents and papers as the
         Lender may reasonably request in connection therewith, all in form and
         substance satisfactory to the Lender.

                  (e) The Borrower shall have paid to the Lender the balance of
         the arrangement fee as well as all costs and expenses incurred as of
         the Closing Date which the Borrower is obligated to pay pursuant to
         the terms of Section 12.7 hereof.

         The acceptance by the Borrower of any Loan made on the Closing Date
shall be deemed to be a representation and warranty made by the Borrower to the
effect that all of the conditions to the making of such Loan set forth in this
Section 8.1 have been satisfied, with the same effect as delivery to the Lender
of a certificate signed by the president and chief financial officer of the
Borrower, dated the Closing Date, to such effect.

         8.2 Conditions Precedent to Each Loan. The obligation of the Lender
to make each Loan including the initial Loans on the Closing Date shall be
subject to the satisfaction of further conditions precedent that on the date of
any such extension of credit:

                  (a) with respect to a request for Working Capital Loans, the
         Borrower shall be in compliance with Section 5.2(a) and a duly
         executed Notice of Borrowing, or telecopy or telex notice in lieu
         thereof, as and when required pursuant to Section 2.3(a); and

                  (b) the following statements shall be true, and the
         acceptance by the Borrower of any extension of credit shall be deemed
         to be a statement to the effect set forth in clauses (ii) and (iii),
         with the same effect as the delivery to the Lender of a certificate

                                      45
<PAGE>   51

         signed by the president and chief financial officer of the Borrower,
         dated the date of such extension of credit, stating that:

                           (i) The representations and warranties contained in
                  this Agreement and the other Loan Documents are correct in
                  all material respects on and as of the date of such extension
                  of credit as though made on and as of such date;

                           (ii) no event has occurred and is continuing, or
                  would result from such extension of credit, which constitutes
                  a Default or an Event of Default; and

                  (c) the Lender shall have received such other approvals,
         opinions or documents as it may reasonably request in Good Faith.

                                  Article IX.

                               DEFAULT; REMEDIES

         9.1 Events of Default. It shall constitute an event of default ("Event
of Default") if any one or more of the following shall occur for any reason:

                  (a) any failure to pay the principal of or interest or
         premium on any of the Obligations within three (3) days of when due,
         whether upon demand or otherwise;

                  (b) any representation or warranty made by the Borrower in
         this Agreement, or by the Borrower, the OGAC Entities or any of their
         Subsidiaries in any of the other Loan Documents, any financial
         statement, or any certificate furnished by the Borrower at any time to
         the Lender shall prove to be untrue in any material respect as of the
         date on which made;

                  (c) any failure by the Borrower to comply with any of the
         covenants set forth in Article VII of this Agreement except for the
         covenants set forth in Sections 7.1, 7.2, 7.3, 7.4, 7.5, 7.6, 7.7,
         7.8, 7.24 and 7.25;

                  (d) any failure by the Borrower, the OGAC Entities or any of
         their respective Subsidiaries to comply with any of the covenants and
         agreements contained in this Agreement (including, without limitation,
         Sections 7.1, 7.2, 7.3, 7.4, 7.7, 7.8, 7.24 and 7.25), the other Loan
         Documents, or any other agreement entered into at any time to which
         the Borrower, the OGAC Entities or any of their respective
         Subsidiaries and the Lender are party, for more than thirty (30) days
         after notice of such failure by the Lender to the Borrower; provided,
         however, that no such grace period shall apply, and an Event of
         Default shall exist promptly upon such failure to comply, if such
         failure to comply may not, in the Lender's reasonable determination,
         be cured by the Borrower during such grace period; or if any such
         agreement, instrument or document shall terminate (other than in
         accordance with its terms or the terms hereof or with the written
         consent of the Lender) or become void or unenforceable without the
         written consent of the Lender;

                                      46
<PAGE>   52

                  (e) failure of the Borrower or any of its Subsidiaries to pay
         when due (whether by acceleration or otherwise) any Debt aggregating
         in excess of $100,000; or the default by the Borrower or any of its
         Subsidiaries with respect to any Debt in an outstanding principal
         amount in excess of $250,000 under any agreement or instrument under
         or pursuant to which any such Debt or indebtedness may have been
         issued, created, assumed, or guaranteed by the Borrower and such
         default shall continue for more than the period of grace, if any,
         therein specified, if the effect thereof (with or without the giving
         of notice or further lapse of time or both) is to accelerate, or to
         permit the holders of any such Debt or indebtedness to accelerate, the
         maturity of any such Debt; or any such Debt or indebtedness shall be
         declared due and payable or be required to be prepaid (other than by a
         regularly scheduled required prepayment) prior to the stated maturity
         thereof unless and during such time the Borrower is contesting such
         Debt in good faith by appropriate proceedings and has established
         reserves required in accordance with GAAP;

                  (f) the Borrower, OGAC or any of their Subsidiaries shall (i)
         file a voluntary petition in bankruptcy or file a voluntary petition
         or an answer or otherwise commence any action or proceeding seeking
         reorganization, arrangement or readjustment of its debts or for any
         other relief under the federal Bankruptcy Code, as amended, or under
         any other bankruptcy or insolvency act or law, state or federal, now
         or hereafter existing, or consent to, approve of, or acquiesce in, any
         such petition, action or proceeding; (ii) apply for or acquiesce in
         the appointment of a receiver, assignee, liquidator, sequestrator,
         custodian, trustee or similar officer for it or for all or any part of
         its Property; (iii) make an assignment for the benefit of creditors;
         (iv) take any corporate action in furtherance of any of the foregoing
         or (v) be unable generally to pay its debts as they become due;

                  (g) an involuntary petition shall be filed or an action or
         proceeding otherwise commenced seeking reorganization, arrangement or
         readjustment of the Borrower's or any of its Subsidiaries debts or for
         any other relief under the federal Bankruptcy Code, as amended, or
         under any other bankruptcy or insolvency act or law, state or federal,
         now or hereafter existing and such petition, action or proceeding is
         not dismissed within sixty (60) days thereafter;

                  (h) a receiver, assignee, liquidator, sequestrator,
         custodian, trustee or similar officer for the Borrower, the OGAC
         Entities or any of their Subsidiaries or for all or any part of their
         Property shall be appointed; or a warrant of attachment, execution or
         similar process shall be issued against any material part of the
         Property of the Borrower, the OGAC Entities or any of their
         Subsidiaries;

                  (i) the Borrower shall file a certificate of dissolution
         under applicable state law or shall be liquidated, dissolved or
         wound-up or shall commence or have commenced against it any action or
         proceeding for dissolution, winding-up or liquidation, or shall take
         any corporate action in furtherance thereof;

                  (j) any guaranty of, subordination to, or material security
         for, the Obligations shall be terminated, revoked or declared void or
         invalid or fail to be perfected;

                  (k) one or more final judgments for the payment of money
         aggregating in excess of $100,000 shall be rendered against the
         Borrower, OGAC or any of their Subsidiaries which is not discharged in
         full or stayed within thirty (30) days from the date

                                      47
<PAGE>   53

         of entry thereof unless such judgments are (i) covered by the
         liability insurance as confirmed in writing by the insurance company
         carrying such insurance, or (ii) the subject of an obligation of any
         Person (other than the Borrower or any Affiliate of the Borrower) to
         indemnify the Borrower against whom such judgment is rendered provided
         the terms of such indemnification and the creditworthiness of the
         indemnitor are satisfactory to the Lender in its sole discretion; or

                  (l) any event occurs which materially and adversely affects
         the operations and financial condition of the Borrower and its
         Subsidiaries taken as a whole.

         9.2 Remedies.

                  (a) If an Event of Default exists, the Lender may, without
         notice to or demand on the Borrower, do one or more of the following,
         in addition to the actions described in the preceding sentence, at any
         time or times and in any order: (i) terminate the Commitment and (ii)
         declare any or all Obligations to be immediately due and payable
         (provided, however that upon the occurrence of any Event of Default
         described in Sections 9.1(f), 9.1(g), 9.1(h), or 9.1(i), all
         Obligations shall automatically become immediately due and payable
         without notice or demand of any kind); and (iii) pursue its other
         rights and remedies under the Loan Documents and applicable law.

                  (b) If an Event of Default exists: (i) the Lender shall have,
         in addition to all other rights, the rights and remedies of a secured
         party under the UCC; (ii) the Lender may, at any time, take possession
         of the Collateral and keep it on the Borrower's premises, at no cost
         to the Lender, or remove any part of it to such other place or places
         as the Lender may desire, or the Borrower shall, upon the Lender's
         demand, at the Borrower's cost, assemble the Collateral and make it
         available to the Lender at a place reasonably convenient to the
         Lender; and (iii) the Lender may sell and deliver any Collateral at
         public or private sales, for cash, upon credit or otherwise, at such
         prices and upon such terms as the Lender deems advisable, in its sole
         discretion, and may, if the Lender deems it reasonable, postpone or
         adjourn any sale of the Collateral by an announcement at the time and
         place of sale or of such postponed or adjourned sale without giving a
         new notice of sale. Without in any way requiring notice to be given in
         the following manner, the Borrower agrees that any notice by the
         Lender of sale, disposition or other intended action hereunder or in
         connection herewith, whether required by the UCC or otherwise, shall
         constitute reasonable notice to the Borrower if such notice is mailed
         by registered or certified mail, return receipt requested, postage
         prepaid, or is delivered personally against receipt, at least ten (10)
         Business Days prior to such action to the Borrower's address specified
         in or pursuant to Section 12.8. If any Collateral is sold on terms
         other than payment in full at the time of sale, no credit shall be
         given against the Obligations until the Lender receives payment, and
         if the buyer defaults in payment, the Lender may resell the Collateral
         without further notice to the Borrower. In the event the Lender seeks
         to take possession of all or any portion of the Collateral by judicial
         process, the Borrower irrevocably waives: (i) the posting of any bond,
         surety or security with respect thereto which might otherwise be
         required; (ii) any demand for possession prior to the commencement of
         any suit or action to recover the Collateral; and (iii) any
         requirement that the Lender retain possession and not dispose of any
         Collateral until after trial or final judgment. The Borrower agrees
         that the Lender has no obligation

                                      48
<PAGE>   54

         to preserve rights to the Collateral or marshal any Collateral for the
         benefit of any Person. The Lender is hereby granted a license or other
         right to use, without charge, the Borrower's labels, patents,
         copyrights, name, trade secrets, trade names, trademarks, and
         advertising matter, or any similar property, in completing production
         of, advertising or selling any Collateral, and the Borrower's rights
         under all licenses and all franchise agreements shall inure to the
         Lender's benefit. The proceeds of sale shall be applied by Lender
         against the principal and/or interest of any Loans and/or any other
         Obligations, whether or not then due, in such order of application as
         the Lender may determine. The Lender will return any excess to the
         Borrower or such other Person as shall be legally entitled thereto and
         the Borrower shall remain liable for any deficiency.

                  (c) After the occurrence and during the continuance of an
         Event of Default, the Borrower hereby waive all rights to notice and
         hearing prior to the exercise by the Lender of the Lender's rights to
         repossess the Collateral without judicial process or to replevy,
         attach or levy upon the Collateral without notice or hearing.

                                  Article X.

                                  TERMINATION

         This Agreement shall terminate at such time as all of the Obligations
have been indefeasibly paid and satisfied in full and the Commitment shall have
been terminated, unless earlier terminated as provided herein.

                                  Article XI.

                      AMENDMENTS; ASSIGNMENTS; SUCCESSORS

         11.1 Amendments and Waivers. No amendment or modification of any
provision of this Agreement shall be effective without the written agreement of
the Lender and the Borrower, and no termination or waiver of any provision of
this Agreement, or consent to any departure by the Borrower therefrom, shall in
any event be effective without the written concurrence of the Lender, which the
Lender shall have the right to grant or withhold at its sole discretion. Any
waiver or consent shall be effective only in the specific instance and for the
specific purpose for which it was given. No notice to or demand on the Borrower
in any case shall entitle the Borrower to any other or further notice or demand
in similar or other circumstances.

         11.2 Participations.

                  (a) Permitted Participants, Effect. Upon notice to the
         Borrower (which notice shall include the identity of each Participant
         (as defined below)), the Lender may, in the ordinary course of its
         business and in accordance with applicable law, at any time sell to
         one or more banks or other entities ("Participants") participating
         interests in any Loan owing to the Lender, any Note held by the
         Lender, the Commitment of the Lender or any other interest of the
         Lender under the Loan Documents. In the event of any such sale by a
         Lender of participating interests to a Participant, the Lender's
         obligations under the Loan Documents shall remain unchanged, the
         Lender shall remain solely responsible to the other parties hereto for
         the performance of such obligations, the Lender shall remain the owner
         of its Loans and the holder of any Note issued to it in evidence
         thereof for all

                                      49
<PAGE>   55

         purposes under the Loan Documents, all amounts payable by the Borrower
         under this Agreement shall be determined as if the Lender had not sold
         such participating interests, and the Borrower and the Lender shall
         continue to deal solely and directly with the Lender's rights and
         obligations under the Loan Documents.

                  (b) Voting Rights. The Lender shall retain the sole right to
         approve, without the consent of any Participant, any amendment,
         modification or waiver of any provision of the Loan Documents other
         than any amendment, modification or waiver with respect to any Loan or
         the Commitment in which such Participant has an interest which
         forgives principal, interest or fees or reduces the interest rate or
         fees payable with respect to any such Loan or Commitment, extends the
         Working Capital Termination Date, postpones any date fixed for any
         regularly scheduled payment of principal of, or interest or fees on,
         any such Loan or Commitment, releases any guarantor of any such Loan
         or releases all or substantially all of the Collateral securing any
         such Loan.

                  (c) Benefit of Setoff. The Borrower agrees that each
         Participant shall be deemed to have the right of setoff provided in
         Section 12.14 in respect of its participating interest in amounts
         owing under the Loan Documents to the same extent as if the amount of
         its participating interest were owing directly to it as the Lender
         under the Loan Documents, provided that the Lender shall retain the
         right of setoff provided in Section 12.14 with respect to the amount
         of participating interests sold to each Participant. The Lender agrees
         to share with each Participant, and each Participant, by exercising
         the right of setoff provided in Section 12.14, agrees to share with
         the Lender, any amount received pursuant to the exercise of its right
         of setoff, such amounts to be shared as if each Participant were a
         Lender.

         11.3 Assignments.

                  (a) Permitted Assignments. The Lender may, in the ordinary
         course of its business and in accordance with applicable law, at any
         time assign to one or more banks or other entities which are Eligible
         Assignees ("Purchasers") all or any part of its rights and obligations
         under the Loan Documents. Such assignment shall be in such form as may
         be agreed to by the parties thereto and shall be in a minimum amount
         of $3,000,000. The consent of the Borrower shall be required prior to
         an assignment becoming effective with respect to a Purchaser which is
         not an Affiliate thereof; provided, however, that if a Default has
         occurred and is continuing, the consent of the Borrower shall not be
         required. Such consent shall not be unreasonably withheld or delayed.

                  (b) Effect, Effective Date. Upon (i) delivery to the Lender
         of an assignment, together with any consents required by Section 11.3,
         and (ii) the delivery of an intercreditor agreement in form
         satisfactory to both the Lender and Borrower which agreement shall
         provide for the appointment of one of the Lenders as agent who shall
         act as representative for all such Lenders in dealings with the
         Borrower, such assignment shall become effective on the effective date
         specified in such assignment. On and after the effective date of such
         assignment, such Purchaser shall for all purposes be a Lender party to
         this Agreement and any other Loan Document executed by or on behalf of
         the Lender and shall have all the rights and obligations of a Lender
         under the Loan Documents, to the same extent as if it were an original
         party hereto, and no further

                                      50
<PAGE>   56

         consent or action by the Borrower, or the Lender shall be required to
         release the transferor Lender with respect to the percentage of the
         Commitment and Loans assigned to such Purchaser. Upon the consummation
         of any assignment to a Purchaser pursuant to this Section 11.3, the
         transferor Lender, the Lender and the Borrower shall, if the Purchaser
         desires that its Loans be evidenced by Notes, make appropriate
         arrangements so that new Notes or, as appropriate, replacement Notes
         are issued to such transferor Lender and new Notes or, as appropriate,
         replacement Notes, are issued to such Purchaser, in each case in
         principal amounts reflecting their respective portion of the
         Commitment, as adjusted pursuant to such assignment.

                                  Article XII.

                                 MISCELLANEOUS

         12.1 Cumulative Remedies; No Prior Recourse to Collateral. The
enumeration herein of the Lender's rights and remedies is not intended to be
exclusive, and such rights and remedies are in addition to and not by way of
limitation of any other rights or remedies that the Lender may have under the
UCC or other applicable law. The Lender shall have the right, in its sole
discretion, to determine which rights and remedies are to be exercised and in
which order. The exercise of one right or remedy shall not preclude the
exercise of any others, all of which shall be cumulative. The Lender may,
without limitation, proceed directly against the Borrower to collect the
Obligations without any prior recourse to the Collateral.

         12.2 No Implied Waivers. No act, failure or delay by the Lender shall
constitute a waiver of any of its rights and remedies. No single or partial
waiver by the Lender of any provision of this Agreement or any other Loan
Document, or of breach or default hereunder or thereunder, or of any right or
remedy which the Lender may have, shall operate as a waiver of any other
provision, breach, default, right or remedy or of the same provisions, breach,
default, right or remedy on a future occasion. No waiver by the Lender shall
affect its rights to require strict performance of this Agreement.

         12.3 Severability. If any provision of this Agreement shall be
prohibited or invalid, under applicable law, it shall be ineffective only to
such extent, without invalidating the remainder of this Agreement.

         12.4 Governing Law; Choice of Forum; Service of Process; Jury Trial
Waiver.

                  (a) THIS AGREEMENT SHALL BE INTERPRETED AND THE RIGHTS AND
         LIABILITIES OF THE PARTIES HERETO DETERMINED IN ACCORDANCE WITH THE
         INTERNAL LAWS (AS OPPOSED TO THE CONFLICT OF LAWS PROVISIONS) OF THE
         STATE OF NEW YORK.

                  (b) SUBJECT ONLY TO THE EXCEPTION IN THE NEXT SENTENCE, THE
         BORROWER AND THE LENDER HEREBY AGREE TO THE EXCLUSIVE JURISDICTION OF
         THE FEDERAL COURT OF THE SOUTHERN DISTRICT OF NEW YORK AND WAIVE ANY
         OBJECTION BASED ON VENUE OR FORUM NON CONVENIENS WITH RESPECT TO ANY
         ACTION INSTITUTED THEREIN, AND AGREE THAT ANY DISPUTE CONCERNING THE
         RELATIONSHIP BETWEEN THE LENDER AND THE BORROWER OR THE CONDUCT OF ANY

                                      51
<PAGE>   57

         PARTY IN CONNECTION WITH THIS AGREEMENT OR OTHERWISE SHALL BE HEARD
         ONLY IN THE COURTS DESCRIBED ABOVE. NOTWITHSTANDING THE FOREGOING THE
         LENDER SHALL HAVE THE RIGHT TO BRING ANY ACTION OR PROCEEDING AGAINST
         THE BORROWER OR ITS PROPERTY IN THE COURTS OF ANY OTHER JURISDICTION
         THE LENDER DEEMS NECESSARY OR APPROPRIATE IN ORDER TO REALIZE ON THE
         COLLATERAL OR OTHER SECURITY FOR THE OBLIGATIONS.

                  (c) THE BORROWER HEREBY WAIVES PERSONAL SERVICE OF ANY AND
         ALL PROCESS UPON IT AND CONSENTS THAT ALL SUCH SERVICE OF PROCESS MAY
         BE MADE BY REGISTERED MAIL (RETURN RECEIPT REQUESTED) DIRECTED TO THE
         BORROWER AT ITS ADDRESS SET FORTH IN SECTION 12.8 AND SERVICE SO MADE
         SHALL BE DEEMED TO BE COMPLETED FIVE (5) DAYS AFTER THE SAME SHALL
         HAVE BEEN SO DEPOSITED IN THE U.S. MAILS. THE BORROWER HEREBY CONSENTS
         TO SERVICE OF PROCESS AS AFORESAID.

                  (d) THE BORROWER AND THE LENDER HEREBY WAIVE ANY RIGHT TO
         TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION (I)
         ARISING UNDER THIS AGREEMENT OR ANY OTHER INSTRUMENT, DOCUMENT OR
         AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH OR (II) IN ANY
         WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE
         PARTIES HERETO OR ANY OF THEM IN RESPECT TO THIS AGREEMENT OR ANY
         OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED, IN
         CONNECTION HEREWITH OR THE TRANSACTIONS RELATED HERETO, IN EACH CASE
         WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN
         CONTRACT OR TORT OR OTHERWISE. THE LENDER AND BORROWER HEREBY AGREE
         AND CONSENT THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION
         SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY AND THAT ANY PARTY MAY
         FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS AGREEMENT WITH ANY
         COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES HERETO TO THE
         WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

                  (e) NOTHING IN THIS SECTION 12.4 SHALL AFFECT THE RIGHT OF
         THE LENDER TO SERVE LEGAL PROCESS IN ANY OTHER MANNER PERMITTED BY LAW
         OR AFFECT THE RIGHT OF THE LENDER TO BRING ANY ACTION OR PROCEEDING
         AGAINST THE BORROWER OR ITS PROPERTY IN THE COURTS OF ANY OTHER
         JURISDICTION.

         12.5 Survival of Representations and Warranties. All of the Borrower's
representations, and warranties contained in this Agreement shall survive the
execution, delivery, and acceptance thereof by the parties, notwithstanding any
investigation by the Lender or any of its respective agents.

                                      52
<PAGE>   58

         12.6 Other Security and Guaranties. The Lender, may, without notice or
demand and without affecting the Borrower's obligations hereunder, from time to
time: (a) take from any Person and hold collateral (other than the Collateral)
for the payment of all or any part of the Obligations and exchange, enforce or
release such collateral or any part thereof; and (b) accept and hold any
endorsement or guaranty of payment of all or any part of the Obligations and
release or substitute the Borrower or any such endorser or guarantor, or any
Person who has given any Lien in any other collateral as security for the
payment of all or any part of the Obligations, or any other Person in any way
obligated to pay all or any part of the Obligations.

         12.7 Fees and Expenses. The Borrower shall pay to the Lender within
ten (10) days of demand all reasonable costs and expenses that Lender pays or
incurs in connection with the negotiation, preparation, consummation,
enforcement, and termination of this Agreement and the other Loan Documents,
including, without limitation: (a) reasonable attorneys' and paralegals' fees
and disbursements of counsel to the Lender; (b) reasonable costs and expenses
(including reasonable attorneys' and paralegals' fees and disbursements) for
any amendment, supplement, waiver, consent, or subsequent closing in connection
with the Loan Documents and the transactions contemplated thereby; (c) costs
and expenses of lien and title searches and title insurance; (d) taxes, fees
and other charges for recording any mortgages, filing financing statements and
continuations, and other actions to perfect, protect, and continue the Lender's
Liens; (e) sums paid or incurred to pay any amount or take any action required
of the Borrower under the Loan Documents that the Borrower fails to pay or
take; (f) reasonable costs of inspections, and verifications of the Collateral,
including, without limitation, due diligence appraisals, travel, lodging, and
meals for inspections of the Collateral and the Borrower's operations by the
Lender's agents up to one (1) time during any Fiscal Year and whenever an Event
of Default exists; (g) costs and expenses (which shall not exceed the Lender's
costs and expenses customarily charged to other customers) of forwarding loan
proceeds, collecting checks and other items of payment, and establishing and
maintaining the Concentration Account; (h) costs and expenses of preserving and
protecting the Collateral; and (i) costs and expenses (including attorneys' and
paralegals' fees and disbursements) paid or incurred to obtain payment of the
Obligations, enforce the Lender's Liens, sell or otherwise realize upon the
Collateral, and otherwise enforce the provisions of the Loan Documents, or to
defend any claims made or threatened against the Lender arising out of the
transactions contemplated hereby (including without limitation, preparations
for and consultations concerning any such matters). The foregoing shall not be
construed to limit any other provisions of the Loan Documents regarding costs
and expenses to be paid by the Borrower. All of the foregoing costs and
expenses may be paid from the proceeds of Working Capital Loans as described in
Section 2.8(b).

         12.8 Notices. Except as otherwise provided herein, all notices,
demands and requests that any party is required or elects to give to any other
party shall be in writing, or by a telecommunications device capable of
creating a written record, and any such notice shall become effective (a) upon
personal delivery thereof, (b) on the Business Day following the Business Day
on which it was delivered to an overnight mail or courier service with charges
prepaid, (c) five (5) days after it shall have been mailed by United States
mail, first class, certified or registered, with postage prepaid, or (d) in the
case of notice by a telecommunication device, upon acknowledgement of receipt
when properly transmitted, in each case addressed with respect to each party as
set forth below:

                                      53
<PAGE>   59

         If to the Lender:          Citicorp U.S.A., Inc.
                                    153 East 53rd Street, 25th Floor
                                    New York, New York  10043
                                    Attn:  Maryrose Balick
                                    Telephone:  212-559-9938
                                    Telecopy:  212-793-7964

         with a copy to:            Sonnenschein Nath & Rosenthal
                                    8000 Sears Tower
                                    Chicago, Illinois  60606-6404
                                    Attention:  Victoria A. Gilbert, Esq.
                                    Telephone:  312-876-8000
                                    Telecopy:  312-876-7934

         If to the Borrower:        Energy Auction Exchange, Inc.
                                    7900 East Union Avenue, Suite 1100
                                    Denver, Colorado  80237
                                    Attention:  Gary Vickers
                                    Telephone:  303-694-5350
                                    Telecopy:  303-694-5326

         with a copy to:            Cooley Godward LLP
                                    2595 Canyon Boulevard, Suite 250
                                    Boulder, Colorado  80302-6737
                                    Attention:  James C.T. Linfield, Esq.
                                    Telephone:  303-546-4000
                                    Telecopy:  303-546-4099

         or to such other address as each party may designate for itself by
like notice. Failure or delay in delivering copies of any notice, demand,
request, consent, approval, declaration or other communication to the persons
designated above to receive copies shall not adversely affect the effectiveness
of such notice, demand, request, consent, approval, declaration or other
communication. Any notices, demands or consents required or permitted to be
given to or by the Borrower will be valid and binding on all Borrower if given
to or by, as the case may be, the Borrower.

         12.9 Indemnity. The Borrower agrees to (a) reimburse the Lender for
any costs and expenses (including, without limitation, reasonable attorneys'
and paralegals' fees and expenses) incurred by the Lender in defending any suit
brought against it by the Borrower or any other Person in connection with the
transactions contemplated by this Agreement or the Loan Documents, and (b)
indemnify and hold the Lender, and its officers, directors, employees,
attorneys and agents (collectively, the "Indemnitees") harmless from and
against any and all liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements of any kind or
nature whatsoever incurred by the Indemnitees, whether direct, indirect or
consequential, as a result of or arising from or relating to any proceeding by
any Person, whether threatened or initiated, asserting any claim for legal or
equitable remedy against any Person under any statute or regulation (including,
without limitation, any federal or state securities or commercial laws or under
any common law or equitable cause or otherwise,

                                      54
<PAGE>   60

including any liability and costs under Environmental Laws or common law
principles arising from or in connection with the past, present or future
operations of the Borrower or their predecessors in interest, or the past,
present or future environmental condition of the Borrower's Property, the
presence of asbestos-containing materials at or on such Property, or the
release or threatened release of any contaminant into the environment from such
Property), in any way arising from or in connection with the negotiation,
preparation, execution, delivery, enforcement, performance and administration
of this Agreement or any other document executed in connection herewith,
provided that the Borrower shall have no obligation hereunder with respect to
indemnified liabilities arising from the gross negligence or willful misconduct
of any Indemnitee seeking such indemnification. To the extent that the
indemnity set forth in this Section 12.9 may be unenforceable because it is
violative of any law or public policy, Borrower shall pay the maximum portion
which it is permitted to pay under applicable law. Any Indemnitee will promptly
notify the Borrower of the commencement of any legal proceeding which may give
rise to any indemnified liability under the foregoing indemnity and shall
permit the Borrower to participate in the defense of such Indemnitee in any
such proceeding. The foregoing indemnity shall survive the payment of the
Obligations and the termination of this Agreement. All of the foregoing fees,
costs and expenses shall be part of the Obligations, payable upon demand, and
secured by the Collateral.

         12.10 Waiver of Notices. Unless otherwise expressly provided herein,
each Borrower waives presentment, protest and notice of demand or dishonor and
protest as to any instrument, as well as any and all other notices to which it
might otherwise be entitled. No notice to or demand on the Borrower which the
Lender may elect to give shall entitle the Borrower to any or further notice or
demand in the same, similar or other circumstances.

         12.11 Counterparts. This Agreement may be executed in any number of
counterparts, and by the Lender and the Borrower in separate counterparts, each
of which shall be an original, but all of which shall together constitute one
and the same agreement.

         12.12 Captions. The captions contained in this Agreement are for
convenience only, are without substantive meaning and should not be construed
to modify, enlarge, or restrict any provision.

         12.13 Confidentiality. The Lender hereby agrees that it will use
reasonable efforts to keep confidential any information from time to time
supplied to it by the Borrower under this Agreement unless such information was
already known to the Lender on a nonconfidential basis at the time it was
received or was obtained from a third party on a nonconfidential basis, or was,
is or becomes publicly available; provided, however, that nothing herein shall
affect the disclosure of any such information to: (a) the extent required by
statute, rule, regulation or judicial process; (b) provided that all such
persons agree to keep such information confidential in accordance with this
Section 12.13 (i) counsel for the Lender or to its accountants; (ii) bank
examiners and auditors; and (iii) any transferee or prospective transferee of
any Note; or (c) any other Person in connection with any litigation to which
the Lender is a party; provided, further, that the Lender hereby agrees that it
will notify the Borrower in writing of any request for information under
clauses (a) and (c) above or with respect to any other request for information
not enumerated in this Section 12.13 at least five (5) Business Days before
complying with any such request, unless such notice is specifically prohibited
by applicable law, court order or governmental authority. If the terms of any
request for information subject to the last proviso of

                                      55
<PAGE>   61

the preceding sentence do not provide a reasonably sufficient time to give the
Borrower five (5) Business Days' notice, the Lender will use its best efforts
to seek additional time for compliance in order to permit such notice and in
any event will notify the Borrower of such request as soon as practicable.

         12.14 Set-Off. In addition to, and without limitation of, any rights
of the Lender under applicable law, if the Borrower becomes insolvent, however
evidenced, or any Default occurs, any and all deposits (including all account
balances, whether provisional or final and whether or not collected or
available) and any other Debt at any time held or owing by the Lender or for
the credit or account of the Borrower may be offset and applied toward the
payment of the Obligations owing to the Lender, whether or not the Obligations,
or any part hereof, shall then be due.

                                      56
<PAGE>   62

         IN WITNESS WHEREOF, the parties have entered into this Agreement on
the date first above written.

                                 ENERGY AUCTION EXCHANGE, INC.

                                 By: /s/
                                     ------------------------------------
                                 Title:
                                       ----------------------------------

                                 CITICORP U.S.A., INC.

                                 By: /s/
                                     ------------------------------------
                                 Title:
                                       ----------------------------------

                                      57
<PAGE>   63

                              NOTICE OF BORROWING

                                                                   July 28, 1999

Citicorp U.S.A., Inc.
909 Third Avenue, 22nd Floor
New York, NY  10013
Attention:  Maryrose Balick

Ladies and Gentlemen:

         Reference is made to the Loan and Security Agreement dated as of July
28, 1999 by and between Energy Auction Exchange, Inc. (referred to herein as the
"Borrower") and Citicorp U.S.A., Inc. (the "Lender") (as amended from time to
time, the "Loan Agreement"). Capitalized terms used herein have the meanings
specified in the Loan Agreement.

         The undersigned hereby deliveries this Notice of Borrowing pursuant to
Section 2.3 of the Loan Agreement as follows:

         (i)      The date of borrowing of the proposed Loan is July ___, 1999.

         (ii)     The aggregate amount of the proposed Loan which is to be the
                  Term Loan is $6,000,000.

         (iii)    The aggregate amount of the proposed Loan which is to be the
                  Working Capital Loan is $________.

         (iv)     The proposed Loan to be made pursuant to Section 2.3 shall be
                  a Base Rate Loan.

         The undersigned hereby certifies that the following statements are
true on the date hereof, and will be true on the date of the proposed
borrowing, before and after giving effect thereto and to the application of the
proceeds therefrom:

                  (a) the representations and warranties contained in Article
         VI of the Loan Agreement are true and correct as though made on the
         date hereof (except to the extent such representations and warranties
         relate to an earlier date, in which case they are true and correct as
         of such date); and

                  (b) no Default or Event of Default has occurred and is
         continuing, or would result from such proposed borrowing.

                                                  ENERGY AUCTION EXCHANGE, INC.

                                                  By:
                                                       ------------------------

                                                  Title:
                                                         ----------------------

<PAGE>   64

                                   TERM NOTE

US$6,000,000                                              Dated:  July 28, 1999

         FOR VALUE RECEIVED, the undersigned, ENERGY AUCTION EXCHANGE, INC., a
Delaware corporation (referred to herein as the "Borrower"), hereby promises to
pay to the order to Citicorp U.S.A., Inc. (the "Lender") the principal amount
of Six Million and 00/100 Dollars ($6,000,000). Capitalized terms used herein
have the meanings specified for such terms in the Loan Agreement (as defined
below).

         In addition to Mandatory Prepayments required under Section 2.4, the
Borrower shall pay such amounts under this Term Note to result in the
outstanding principal amount of the Term Loan to be reduced to zero by the
Termination Date on the schedule set forth below: by the amount of $71,428.51
commencing on August 1, 1999 and continuing on a monthly basis to and including
July 1, 2004, and a final installment on the Termination Date equal to the
entire unpaid principal balance of the Term Loan at such time.

         The Borrower promises to pay interest on the unpaid principal amount
of the Term Loan from the Closing Date until such principal amount is paid in
full, at such interest rates, and payable at such times, as are specified in
the Loan Agreement.

         Both principal and interest are payable in lawful money of the United
States of America to Citicorp U.S.A., Inc. at its office or branch at 153 East
53rd Street, New York, New York 10043 or at such other offices as the Lender
may subsequently designate in writing, in same day funds. All payments made on
account of principal hereof shall be recorded by the Lender and, prior to any
transfer hereof, endorsed on the grid attached hereto which is part of this
Term Note.

         This Term Note is the Term Note referred to in, and is entitled to the
benefits of, the Loan and Security Agreement dated as of July 28, 1999 (the
"Loan Agreement") by and between the Borrower and the Lender. The Loan
Agreement, among other things, contains provisions for acceleration of the
maturity hereof upon the happening of certain stated events and also for
prepayments on account of principal hereof prior to the maturity hereof upon
the terms and conditions therein specified.

               [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

<PAGE>   65

         IN WITNESS WHEREOF, the undersigned has entered into this Term Note on
the date first stated above.

                                             ENERGY AUCTION EXCHANGE, INC.

                                             By: /s/
                                                 ------------------------------

                                             Title:
                                                     --------------------------

                                      -2-

<PAGE>   66

       Type  Amount      Interest           Amount       Principal
        of     of         Period              of          Unpaid     Notation
Date   Loan   Loan    (if applicable)   Principal Paid    Balance     made by
----   ----  -----    ---------------   --------------   ---------   --------

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                                      -3-

<PAGE>   67

                              WORKING CAPITAL NOTE

US$3,000,000                                              Dated:  July 28, 1999

                  FOR VALUE RECEIVED, the undersigned, ENERGY AUCTION EXCHANGE,
INC., a Delaware corporation (referred to herein as the "Borrower"), hereby
promises to pay to the order of Citicorp U.S.A., Inc. (the "Lender") the
principal amount of each Working Capital Loan (as defined in the Loan Agreement
referred to below) made by the Lender to the Borrower pursuant to the Loan
Agreement (as defined below) when required by the Loan Agreement and in full on
the Termination Date (as defined in the Loan Agreement). Capitalized terms used
herein have the meanings specified in the Loan Agreement (as defined below).

                  The Borrower promises to pay interest on the unpaid principal
amount of each Working Capital Loan from the date of such Working Capital Loan
until such principal amount is paid in full, at such interest rates, and
payable at such times, as are specified in the Loan Agreement.

                  Both principal and interest are payable in lawful money of
the United States of America to Citicorp U.S.A., Inc., at its office or branch
at 153 East 53rd Street, 25th Floor, New York, NY 10043, or at such other
office as the Lender may subsequently designate in writing, in same day funds.
Each Working Capital Loan made by the Lender to the Borrowers and the maturity
thereof, and all payments made on account of principal thereof, shall be
recorded by the Lender and, prior to any transfer hereof, endorsed on the grid
attached hereto which is part of this Working Capital Note.

                  This Working Capital Note is the Working Capital Note
referred to in, and is entitled to the benefits of, the Loan and Security
Agreement dated as of July 28, 1999 (the "Loan Agreement") by and between the
Borrower and the Lender. The Loan Agreement, among other things, (i) provides
for the making of Working Capital Loans by the Lender to the Borrower from time
to time in an aggregate amount not to exceed at any time outstanding the U.S.
dollar amount first above mentioned, the indebtedness of the Borrower resulting
from each such Working Capital Loan being evidenced by this Working Capital
Note, and (ii) contains provisions for acceleration of the maturity hereof upon
the happening of certain stated events and also for prepayments on account of
principal hereof prior to the maturity hereof upon the terms and conditions
therein specified.

               [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

<PAGE>   68

                  IN WITNESS WHEREOF, the undersigned has entered into this
Working Capital Note on the date first stated above.

                                                 ENERGY AUCTION EXCHANGE, INC.

                                                 By: /s/
                                                     --------------------------

                                                 Title:
                                                        -----------------------

                                   -2-

<PAGE>   69

       Type  Amount      Interest           Amount       Principal
        of     of         Period              of          Unpaid     Notation
Date   Loan   Loan    (if applicable)   Principal Paid    Balance     made by
----   ----  -----    ---------------   --------------   ---------   --------

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                                      -3-
<PAGE>   70

                          FORM OF NOTICE OF CONVERSION

                                                            --------- --, ----

Citibank, N.A.
153 East 53rd Street
New York, NY 10043
Attention: Maryrose Balick

Ladies and Gentlemen:

         Reference is made to the Loan and Security Agreement dated as of July
28, 1999 between Energy Auction Exchange, Inc. (the "Borrower") and Citicorp
USA, Inc. (the "Lender") (as amended from time to time, the "Loan Agreement").
Capitalized terms used herein have the meanings specified in the Loan
Agreement.

         The undersigned, on behalf of the Borrowers, hereby delivers this
Notice of Conversion pursuant to Section 2.11 of the Loan Agreement that:

                  the undersigned hereby requests to [convert] [continue] an
         aggregate principal amount of $____________ of the outstanding Loans
         which are currently [Base Rate Loans] [Eurodollar Rate Loans with an
         Interest Period expiring on __________] to Eurodollar Rate Loans on
         _________ ___, ____. [The Interest Period for such Eurodollar Rate
         Loan is requested to be a ___ [one] [three] [six] month period.]

         The undersigned hereby certifies that no Default or Event of Default
has occurred and is continuing, or would result from such proposed borrowing.

                                        ENERGY AUCTION EXCHANGE, INC.

                                        By:
                                            -----------------------------------
                                        Name:
                                               --------------------------------
                                        Title:
                                               --------------------------------<PAGE>   1
                                                                   EXHIBIT 10.16

                                  OFFICE LEASE

                                     BETWEEN

                       PRENTICE POINT LIMITED PARTNERSHIP,
                         A DELAWARE LIMITED PARTNERSHIP
                                  (AS LANDLORD)

                                       AND

                         ENERGY AUCTION EXCHANGE, INC.,
                             A DELAWARE CORPORATION
                                   (AS TENANT)

<PAGE>   2

<TABLE>
<CAPTION>
Section                                                                        Page
-------                                                                        ----
<S>      <C>                                                                   <C>
 1.      PRINCIPAL TERMS........................................................1

 2.      GENERAL COVENANTS......................................................2

 3.      TERM...................................................................2

 4.      RENT...................................................................2

 5.      COMPLETION OR REMODELING OF THE PREMISES...............................3

 6.      OPERATING EXPENSES/REAL ESTATE TAXES...................................3

 7.      SERVICES...............................................................6

 8.      QUIET ENJOYMENT........................................................7

 9.      DEPOSIT................................................................7

 10.     CHARACTER OF OCCUPANCY.................................................7

 11.     MAINTENANCE, ALTERATIONS AND REENTRY BY LANDLORD.......................7

 12.     ALTERATIONS AND REPAIRS BY TENANT......................................8

 13.     MECHANICS' LIENS.......................................................8

 14.     SUBLETTING AND ASSIGNMENT..............................................9

 15.     DAMAGE TO PROPERTY....................................................10

 16.     INDEMNITY TO LANDLORD.................................................10

 17.     SURRENDER AND NOTICE..................................................10

 18.     INSURANCE, CASUALTY, AND RESTORATION OF PREMISES......................10

 19.     CONDEMNATION..........................................................11

 20.     DEFAULT BY TENANT.....................................................11

 21.     DEFAULT BY LANDLORD...................................................13

 22.     SUBORDINATION AND ATTORNMENT..........................................13

 23.     REMOVAL OF TENANT'S PROPERTY..........................................14

 24.     HOLDING OVER: TENANCY MONTH-TO-MONTH..................................14
</TABLE>

<PAGE>   3

<TABLE>
<S>      <C>                                                                    <C>
 25.     PAYMENTS AFTER TERMINATION..............................................14

 26.     STATEMENT OF PERFORMANCE................................................14

 27.     MISCELLANEOUS...........................................................14

 28.     AUTHORITIES FOR ACTION AND NOTICE.......................................16

 29.     PARKING.................................................................16

 30.     SUBSTITUTE PREMISES.....................................................16

 31.     BROKERAGE...............................................................16

 32.     LEGAL FEES; PREPARATION OF LEASE........................................16

 33.     COUNTERPARTS............................................................16

 34.     ADDENDUM/EXHIBITS.......................................................17

 35.     OPTION TO EXTEND........................................................17
</TABLE>

<PAGE>   4

                                 LEASE AGREEMENT

     THIS LEASE, dated as of May 12, 2000, is by and between PRENTICE POINT
LIMITED PARTNERSHIP, a Delaware limited partnership ("Landlord") and ENERGY
AUCTION EXCHANGE, INC., a Delaware corporation ("Tenant").

                              W I T N E S S E T H :

         1. PRINCIPAL TERMS. Capitalized terms, first appearing in quotations in
this Section, elsewhere in the Lease or any Exhibits, are definitions of such
terms as used in the Lease and Exhibits and shall have the defined meaning
whenever used.

<TABLE>
<S>       <C>     <C>                                        <C>
          1.1     "BUILDING":                                Prentice Point, 5299 DTC Boulevard, Englewood, CO 80111

          1.2     "PREMISES":                                Suite #815

          1.3     "INITIAL TERM":                            1 year, 0 months
                                                             "Commencement Date": October 1, 1999
                                                             "Expiration Date": September 30, 2000
                                                             "Delivery Date":  No later than September 10, 1999

          1.4     "MINIMUM RENT":                                    Period               Annual                Monthly
                                                                     ------               ------                -------

                                                                     Months 1-12          $90,846.00            $7,570.50

          1.5     OPERATING EXPENSES/                        Base Operating Expenses:  calendar year 1999
                  REAL ESTATE TAXES:                         Base Real Estate Taxes: calendar year 1999
                                                             Pro Rata Share: 1.8477%

          1.6     "DEPOSIT":                                 $15,000.00

          1.7     "PERMITTED USE":                           General business offices

          1.8     "GUARANTOR":                               None

          1.9     PARKING:                                   14 spaces ("Tenant's Maximum")

          1.10    LANDLORD'S NOTICE ADDRESS:                 Prentice Point Limited Partnership
                                                             c/o Boston Financial
                                                             437 Madison Avenue, 18th Floor
                                                             New York, NY 10022
                                                             Attn: Legal Coordinator

                  copy to:                                   Prentice Point Limited Partnership
                                                             c/o Boston Financial
                                                             101 Arch Street
                                                             Boston, MA 02110-1106
                                                             Attn: General Counsel
</TABLE>

<PAGE>   5

<TABLE>
<S>       <C>     <C>                                        <C>
                  and copy to:                               Isaacson, Rosenbaum, Woods & Levy, P.C.
                                                             633 17th Street, Suite 2200
                                                             Denver, CO 80202-3622
                                                             Attn: David L. Kuosman, Esq.

                  and copy to:                               Mr. Randall G. Frisk
                                                             Boston Financial Group
                                                             211 East Ocean Boulevard, Suite 241
                                                             Long Beach, CA 90802

                  and copy to:                               Prentice Point Limited Partnership
                                                             5299 South DTC Boulevard
                                                             Englewood, CO 80111
                                                             Attn: Building Manager

          1.11    LANDLORD'S TAX I.D.:                       84-1269269

          1.12    TENANT'S NOTICE ADDRESS:
                  Precommencement Address:                   7900 E. Union Avenue, Suite 1100
                                                             Denver, CO 80237

                  Post Commencement Address:                 5299 DTC Blvd., Suite 815
                                                             Englewood, CO 80111

          1.13    TENANT'S TAX I.D.:                         84-1491583
                                                             ----------

          1.14    LANDLORD'S BROKER:                         Venture Group Real Estate, LLC

          1.15    COOPERATING BROKER:                        Frederick Ross Company

          1.16    ATTACHMENTS:                               [check if applicable]
                                                               x       Exhibit A - Diagram of Premises
                                                             -----
                                                               x       Exhibit B - Real Property
                                                             -----
                                                               x       Exhibit C - Premises Completion
                                                             -----
                                                               x       Exhibit D - Form of First Amendment
                                                             -----
                                                               x       Exhibit E - Rules and Regulations
                                                             -----
</TABLE>

         2. GENERAL COVENANTS. Tenant covenants and agrees to pay Rent and
perform the obligations hereafter set forth and in consideration therefor
Landlord leases to Tenant the Premises as depicted on the plat attached as
EXHIBIT A, together with a non-exclusive right, subject to the provisions
hereof, to use plazas, common areas, or other areas on the real property legally
described on Exhibit B (the "Real Property") designated by Landlord for the
exclusive or non- exclusive use of the tenants of the Building ("Common Areas").
The Building, Real Property, Common Areas, and appurtenances are hereinafter
collectively sometimes called the "Building Complex."

         3. TERM. The Initial Term of the Lease commences at 12:01 a.m. on the
Commencement Date and terminates at 12:00 midnight on the Expiration Date (the
Initial Term together with any extensions thereof is herein referred to as the
"Term.").

         4. RENT. Subject to the provisions below, commencing on the
Commencement Date and on the first day of each month thereafter, Tenant shall
pay Minimum Rent in the amount stated in Section 1.4, in advance without notice
(all amounts, including Minimum Rent, to be paid by Tenant pursuant to this
Lease as the context requires are sometimes referred to collectively as
"Rent(s)"). Rents shall be paid without set off, abatement, or diminution, at
the management office in the Building, or at such other place as Landlord from
time to time designates in writing.

                                        2
<PAGE>   6
   5.   COMPLETION OR REMODELING OF THE PREMISES.

         5.1 Landlord shall, at Landlord's cost and expense, prior to delivering
the Premises to Tenant steam clean all existing carpet in the Premises (the
"Finish Work"). Except as provided in herein, Landlord has no obligation for the
completion or remodeling of the Premises, and Tenant accepts the Premises in its
"as is" condition on the Commencement Date. If Landlord is delayed in delivering
the Premises to Tenant due to Landlord's inability to timely complete the Finish
Work or due to the failure of a prior occupant to vacate, then the Commencement
Date will be postponed to the date Landlord delivers the Premises to Tenant
(hereafter the "Delivery Date"). If the Delivery Date is on other than the first
day of the month, then the Commencement Date will be the first day of the month
following the Delivery Date but all provisions hereof, including Tenant's
obligation to pay Rent (prorated for a partial month), will be in effect as of
the Delivery Date. The postponement of Tenant's obligation to pay Rent is in
full settlement of all claims which Tenant may otherwise have by reason of such
delay. If the Commencement Date is delayed, the Expiration Date shall be
extended so that the Term will continue for the full period set forth in Section
1.3. As soon as the Term commences, Landlord and Tenant agree to execute an
amendment to this Lease in the form attached as EXHIBIT D, setting forth the
exact Delivery Date, Commencement Date and Expiration Date. Notwithstanding the
foregoing, in the event Tenant elects to conduct certain Alterations in the
Premises in accordance with the provisions of Article 12 hereof, then Landlord
shall reimburse to Tenant up to Three Thousand Dollars ($3,000.00) toward the
cost of the Alterations, provided Tenant has completed installation or
construction of the Alterations in the Premises and Tenant has provided lien
waivers or other satisfactory evidence to Landlord that the Alterations were
completed in a lien-free fashion.

         5.2 Taking possession of the Premises by Tenant is conclusive evidence
that the Premises are in the condition agreed between Landlord and Tenant and
acknowledgment by Tenant of satisfactory completion of any work which Landlord
has agreed to perform.

      6. OPERATING EXPENSES/REAL ESTATE TAXES. Tenant shall pay Operating
Expense Rent and Tax Rent as additional Rent hereunder in accordance with the
following:

         6.1 Definitions. The additional terms below have the following meanings
in this Lease:

             (1) "Base Operating Expenses" means an amount equal to the
Operating Expenses for the calendar year set forth in Section 1.5, as determined
by Landlord in accordance with this Section. Tenant acknowledges Landlord has
not made any representations or warranties that the Base Operating Expenses will
equal any specified amounts (any estimates provided by Landlord are non-binding
estimates only).

             (2) "Base Real Estate Taxes" means an amount equal to the Real
Estate Taxes for the calendar year set forth in Section 1.5, as determined by
Landlord in accordance with this Section. Tenant acknowledges Landlord has not
made any representations or warranties that the Base Real Estate Taxes will
equal any specified amounts (any estimates provided by Landlord are non-binding
estimates only).

             (3) "Landlord's Accountants" means that individual or firm employed
by Landlord from time to time to keep the books and records for the Building
Complex, and/or to prepare the federal and state income tax returns for Landlord
with respect to the Building Complex, which books and records shall be certified
to by a representative of Landlord. All determinations made hereunder shall be
made by Landlord's Accountants unless otherwise stated.

             (4) "Tenant's Pro Rata Share" means the percentage set forth in
Section 1.5.

             (5) "Operating Expense Year" means each calendar year during the
Term, except that the first Operating Expense Year begins on the Commencement
Date and ends on December 31 of such year and the last Operating Expense Year
begins on January 1 of the calendar year in which this Lease expires or is
terminated and ends on the date of such expiration or termination. If an
Operating Expense Year is less than twelve (12) months, Operating Expenses for
such year shall be prorated.

             (6) "Operating Expenses" means all operating expenses of any kind
or nature which are in Landlord's reasonable judgment necessary, appropriate, or
customarily incurred in connection with the operation and maintenance of the
Building Complex. Operating Expenses include, but are not limited to, the
following:

                 (a) Costs of supplies, including costs of relamping and
     replacing ballasts in all Building standard tenant lighting;

                 (b) Costs of energy for the Building Complex, including costs
     of propane, butane, natural gas, steam, electricity, solar energy and fuel
     oils, coal or any other energy sources;

                 (c) Costs of water and sanitary and storm drainage services;

                                       3
<PAGE>   7

                 (d) Costs of janitorial and security services;

                 (e) Costs of general maintenance, repairs, and replacements
     including costs under HVAC and other mechanical maintenance contracts; and
     repairs and replacements of equipment used in maintenance and repair work;

                 (f) Costs of maintenance, repair and replacement of
     landscaping;

                 (g) Insurance premiums for the Building Complex, including
     all-risk or multi-peril coverage, together with loss of rent endorsement;
     the part of any claim paid under the deductible portion of any insurance
     policy carried by Landlord; public liability insurance; and any other
     insurance carried by Landlord on any component parts of the Building
     Complex;

                 (h) All labor costs, including wages, costs of worker's
     compensation insurance, payroll taxes, fringe benefits, including pension,
     profit-sharing and health, and legal fees and other costs incurred in
     resolving any labor dispute;

                 (i) Professional building management fees, costs and expenses,
     including costs of office space and storage space required by management
     for performance of its services;

                 (j) Legal, accounting, inspection, and other consulting fees
     (including fees for consultants for services designed to produce a
     reduction in Operating Expenses or improve the operation, maintenance or
     state of repair of the Building Complex);

                 (k) Costs of capital improvements and structural repairs and
     replacements to the Building Complex to conform to changes subsequent to
     the date of issuance of the shell and core certificate of occupancy for the
     Building in any Applicable Laws (herein "Required Capital Improvements");
     and the costs of any capital improvements and structural repairs and
     replacements designed primarily to reduce Operating Expenses (herein "Cost
     Savings Improvements"). Expenditures for Required Capital Improvements and
     Cost Savings Improvements will be amortized at a market rate of interest
     over the useful life of such capital improvement (as determined by
     Landlord's Accountants); however, the amortized amount of any Cost Savings
     Improvement will be limited in any year to the resulting reduction in
     Operating Expenses; and

                 (l) Costs incurred for Landlord's Accountants including costs
     of any experts and consultants engaged to assist in making the
     computations;

"Operating Expenses" do not include:

                     (i) Costs of work, including painting and decorating, which
     Landlord performs for any tenant other than work of a kind and scope which
     Landlord is obligated to furnish to all tenants whose leases contain a
     rental adjustment provision similar to this one;

                     (ii) Costs of repairs or other work occasioned by fire,
     windstorm or other insured casualty to the extent of insurance proceeds
     received;

                     (iii) Leasing commissions, advertising expenses, and other
     costs incurred in leasing space in the Building;

                     (iv) Costs of repairs or rebuilding necessitated by
     condemnation;

                     (v) Interest on borrowed money or debt amortization, except
     as specifically set forth above; or

                     (vi) Depreciation on the Building Complex.

                 (7) "Real Estate Taxes" means all real and personal property
taxes and assessments levied against the Building Complex by any governmental or
quasi-governmental authority, including taxes, assessments, surcharges, or
service or other fees of a nature not presently in effect which are hereafter
levied on the Building Complex as a result of the use, ownership or operation of
the Building Complex or for any other reason, whether in lieu of or in addition
to, any current real estate taxes and assessments. However, any taxes which are
levied on the rent of the Building Complex will be determined as if the Building
Complex were Landlord's only real property. In no event do taxes and assessments
include any federal or state income taxes levied or assessed on Landlord.
Expenses for tax consultants to contest taxes or assessments are also included
as Real Estate Taxes. Real Estate Taxes also include special assessments,
license taxes, business license fees, business license taxes, commercial rental
taxes, levies, charges, penalties or taxes, imposed by any authority against the

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<PAGE>   8

Premises, Building Complex or any legal or equitable interest of Landlord.
Special assessments are deemed payable in such number of installments permitted
by law, whether or not actually so paid, and include any applicable interest on
such installments. Real Estate Taxes (other than special assessments) are
computed on an accrual basis based on the year in which they are levied, even
though not paid until the following Operating Expense Year;

                  (8) "Tax Year" means each calendar year during the Term,
except that the first Tax Year begins on the Commencement Date and ends on
December 31 of such year and the last Tax Year begins on January 1 of the
calendar year in which this Lease expires or is terminated and ends on the date
of such expiration or termination. If a Tax Year is less than twelve (12)
months, Real Estate Taxes for such year shall be prorated.

          6.2     Computation and Payment of Operating Expense Rent.

                  6.2.1 If the actual Operating Expenses payable by Landlord for
any Operating Expense Year exceed the Base Operating Expenses ("Excess Operating
Expenses"), Tenant shall pay its Pro Rata Share of the Excess Operating Expenses
("Operating Expense Rent") to Landlord as provided herein. Following the end of
each Operating Expense Year, Landlord shall submit a statement ("Operating
Expense Statement") to Tenant setting forth the following:

                    (1)  The total Operating Expense Rent payable by Tenant for
                         the just completed Operating Expense Year;

                    (2)  The total amount Tenant has paid as Estimated Operating
                         Expense Rent (hereafter defined) during the just
                         completed Operating Expense Year;

                    (3)  The difference, if any, between the total Operating
                         Expense Rent set forth in item (1) above and the
                         Estimated Operating Expense Rent previously paid as set
                         forth in item (2) above ("Operating Expense Rent
                         Shortfall");

                    (4)  Tenant's Pro Rata Share of Landlord's estimate of
                         Excess Operating Expenses for the new Operating Expense
                         Year ("Estimated Operating Expense Rent") determined in
                         accordance with this Paragraph; and

                    (5)  The amount of the Retroactive Adjustment, if any, in
                         accordance with the following.

                  6.2.2 Commencing on the Commencement Date, Tenant shall pay,
at the same time as monthly Minimum Rent is paid, 1/12 of the Estimated
Operating Expense Rent. To the extent an Operating Expense Statement reflects an
Operating Expense Rent Shortfall Tenant will pay such shortfall within 30 days
after receipt of the Operating Expense Statement (or receive a credit for the
difference against the next due Rent, as the case may be). Until Tenant receives
an Operating Expense Statement, Tenant shall continue to pay the Estimated
Operating Expense Rent for the prior Operating Expense Year. However, Tenant is
responsible for payment (or is eligible for a credit, as the case may be) of any
difference between the old Estimated Operating Expense Rent paid for any period
of the new Operating Expense Year and the new Estimated Operating Expense Rent
payable for that same period ("Retroactive Adjustment"). Tenant shall commence
payment of the new Estimated Operating Expense Rent beginning on the first day
of the month following the month in which Tenant receives the Operating Expense
Statement, at which time the Tenant shall also pay Landlord or deduct from the
next- due Rent, as the case may be, the Retroactive Adjustment. If, during any
Operating Expense Year, there is a change in the information on which Tenant's
Estimated Operating Expense Rent is based so that the prior estimate is no
longer accurate, Landlord may revise the estimate and there shall be a
corresponding adjustment to the Estimated Operating Expense Rent for the balance
of the Operating Expense Year following notice to Tenant.

          6.3     Computation and Payment of Tax Rent.

                  6.3.1 If the actual Real Estate Taxes payable by Landlord for
any Tax Year exceed the Base Real Estate Taxes ("Excess Taxes"), Tenant shall
pay its Pro Rata Share of the Excess Taxes ("Tax Rent") to Landlord as provided
herein. Following the end of each Tax Year, Landlord shall submit a statement
("Tax Statement") to Tenant setting forth the following:

                    (1)  The total Tax Rent payable by Tenant for the just
                         completed Tax Year;

                    (2)  The amount Tenant has paid as Estimated Tax Rent
                         (hereafter defined) during the just completed Tax Year;

                    (3)  The difference, if any, between the total Tax Rent set
                         forth in item (1) above and the Estimated Tax Rent
                         previously paid as set forth in item (2) above ("Tax
                         Rent Shortfall");

                    (4)  Tenant's Pro Rata Share of Landlord's estimate of
                         Excess Taxes for the new Tax Year ("Estimated Tax
                         Rent") determined in accordance with this Paragraph;
                         and

                    (5)  The amount of the Retroactive Adjustment, if any, in
                         accordance with the following.

                  6.3.2 Commencing with the first month of the second Tax Year,
Tenant shall pay, at the same time as monthly Minimum Rent is paid, 1/12 of the
Estimated Tax Rent. To the extent a Tax Statement reflects a Tax Rent Shortfall,
Tenant will pay such shortfall within 30 days after receipt of the Tax Statement
(or receive a credit for the difference against the next due Rent, as the case
may be). Until Tenant receives a Tax Statement, Tenant shall continue to pay the
Estimated Tax Rent for the prior Tax Year. However, Tenant is responsible for
payment (or is eligible for a credit, as the case may be)

                                       5
<PAGE>   9

of any difference between the old Estimated Tax Rent paid for any period of the
new Tax Year and the new Estimated Tax Rent payable for that same period
("Retroactive Adjustment"). Tenant shall commence payment of the new Estimated
Tax Rent beginning on the first day of the month following the month in which
Tenant receives the Tax Statement, at which time the Tenant shall also pay
Landlord or deduct from the next-due Rent, as the case may be, the Retroactive
Adjustment. If, during any Tax Year, there is a change in the information on
which Tenant's Estimated Tax Rent is based so that the prior estimate is no
longer accurate, Landlord may revise the estimate and there shall be a
corresponding adjustment to the Estimated Tax Rent for the balance of the Tax
Year following notice to Tenant.

          6.4 Miscellaneous. If any lease entered into by Landlord with any
tenant in the Building is on a so-called "net" basis, or provides for a separate
basis of computation for any Operating Expenses or Real Estate Taxes with
respect to its leased premises, Landlord's Accountants may modify the
computation of Base Operating Expenses, Base Real Estate Taxes, Tenant's Pro
Rata Share, Operating Expenses and Real Estate Taxes for a particular Operating
Expense Year and/or Tax Year (as applicable) to eliminate or modify any
Operating Expenses and/or Real Estate Taxes which are paid for in whole or in
part by such tenant. If the Building is not fully occupied during any particular
Operating Expense Year or Tax Year, Landlord's Accountants may adjust those
Operating Expenses and Real Estate Taxes which are affected by occupancy for the
particular Operating Expense Year or Tax Year to reflect 100% occupancy.
Furthermore, in making any computations contemplated hereby, Landlord's
Accountants may make such other modifications to the computations as are
required in their judgment to achieve the intention of the parties hereto. In no
event will any decrease in Rent pursuant to any provision hereof result in a
reduction of Rent below the Minimum Rent. Delay by Landlord in submitting any
statement for any Operating Expense Year or Tax Year does not affect the
provisions of this Section or constitute a waiver of Landlord's rights for such
Operating Expense Year, Tax Year, or any subsequent Operating Expense Years or
Tax Years.

          6.5 Dispute. If Tenant disputes an adjustment submitted by Landlord or
a proposed increase or decrease in an Estimated Operating Expense Rent or
Estimated Tax Rent, Tenant shall give Landlord notice of such dispute within 30
days after Tenant's receipt of the adjustment. If Tenant does not give Landlord
timely notice, Tenant waives its right to dispute the particular adjustment. If
Tenant timely objects, Tenant may engage, at its expense, its own certified
public accountants ("Tenant's Accountants") to verify the accuracy of the
statement complained of or the reasonableness of the estimated increase or
decrease. If Tenant's Accountants determine that an error has been made,
Landlord's Accountants and Tenant's Accountants shall endeavor to agree upon the
matter, failing which such matter shall be submitted to an independent certified
public accountant selected by Landlord, with Tenant's reasonable approval, for a
determination which will be conclusive and binding upon Landlord and Tenant.
Tenant agrees that all information obtained or generated in connection with such
audit shall be kept confidential and may not be disclosed to any other tenants
or third parties. Notwithstanding the pendency of any dispute, Tenant shall
continue to pay Landlord the amount of the Estimated Operating Expense Rent or
Estimated Tax Rent being disputed or adjustment determined by Landlord's
Accountants until the adjustment has been determined to be incorrect. If it is
determined that any portion of the Operating Expenses and/or Real Estate Taxes
were not properly chargeable to Tenant, then Landlord shall promptly credit or
refund the appropriate sum to Tenant.

     7.   SERVICES.

          7.1 Subject to the provisions below, Landlord agrees, without charge,
in accordance with standards determined by Landlord from time to time for the
Building: (1) to furnish running water at those points of supply for general use
of tenants of the Building; (2) during Ordinary Business Hours to furnish to
interior Common Areas heated or cooled air (as applicable), electrical current,
janitorial services, and maintenance; (3) during Ordinary Business Hours to
furnish heated or cooled air to the Premises for standard office use provided
the recommendations of Landlord's engineer regarding occupancy and use of the
Premises are complied with by Tenant; (4) to furnish, subject to availability
and capacity of building systems, unfiltered treated chilled water for use in
Tenant's packaged HVAC systems provided that such systems are approved by
Landlord, including strainers, pumping systems and controls; (5) to provide,
during Ordinary Business Hours, the general use of passenger elevators for
ingress and egress to and from the Premises (at least one such elevator shall be
available at all times except in the case of emergencies or repair); (6) to
provide janitorial services for the Premises to the extent of the Initial Tenant
Finish (including window washing of the outside of exterior windows); and (7) to
cause electric current to be supplied to the Premises for Tenant's Standard
Electrical Usage (items (1) through (7) are collectively called "Services").
"Tenant's Standard Electrical Usage" means weekly electrical consumption in an
amount determined by (i) multiplying 3.5 watts/square foot by 59 hours and (ii)
multiplying the product thereof by the number of rentable square feet in the
Premises. "Ordinary Business Hours" means 7:00 a.m. to 6:00 p.m. Monday through
Friday and 9:00 a.m. to 12:00 p.m. on Saturdays, Legal Holidays excepted. "Legal
Holidays" mean New Year's Day, Martin Luther King Day, Presidents' Day, Memorial
Day, Independence Day, Labor Day, Thanksgiving Day, Christmas Day, and such
other national holidays hereafter established by the United States Government.

          7.2 "Excess Usage" means any usage of electricity (1) during other
than Ordinary Business Hours; (2) in an amount in excess of Tenant's Standard
Electrical Usage; or (3) for Special Equipment or for standard HVAC services
during other than Ordinary Business Hours. "Special Equipment" means (a) any
equipment consuming more than 0.5 kilowatts at rated capacity, (b) any equipment
requiring a voltage other than 120 volts, single phase, or (c) equipment that
requires the use of self-contained HVAC units. If Tenant desires Excess Usage,
Landlord will use reasonable efforts to supply the same. Tenant shall reimburse
Landlord for all Landlord's costs of providing services for Excess Usage,
including costs for materials,

                                       6
<PAGE>   10

additional wear and tear on equipment, utilities, and labor (including fringe
and overhead costs). Computation of such costs will be made by Landlord's
engineer, based on his engineering survey of Tenant's Excess Usage. Tenant shall
also reimburse Landlord for all costs of supplementing the Building HVAC System
and/or extending or supplementing any electrical service, as Landlord determines
is necessary, as a result of Tenant's Excess Usage. Prior to installation or use
of Special Equipment or operation of the Premises for extended hours on an
ongoing basis, Tenant shall notify Landlord of such intended installation or use
and obtain Landlord's consent. Not less than 48 hours' prior notice shall be
given Landlord of Tenant's request for such services. Tenant may request that
Landlord install at Tenant's cost a check meter and/or flow meter to determine
the cost of Tenant's Excess Usage. Tenant shall also pay the cost of replacing
light bulbs and/or tubes and ballast used in all lighting in the Premises other
than that provided by Landlord to all tenants of the Building.

          7.3 If Tenant requires janitorial services other than those included
as standard Services, Tenant shall separately pay for such services monthly upon
billings by Landlord, or Tenant shall, at Landlord's option, separately contract
for such services with the same company used by Landlord to furnish janitorial
services to the Building.

          7.4 Landlord may discontinue, reduce, or curtail Services (either
temporarily or permanently) when necessary due to accident, repairs,
alterations, strikes, lockouts, Applicable Laws, or any other happening beyond
Landlord's reasonable control. Landlord is not liable for damages to Tenant or
any other party as a result of any interruption, reduction, or discontinuance of
Services (either temporary or permanent) nor shall the occurrence of any such
event be construed as an eviction of Tenant, cause or permit an abatement,
reduction or setoff of Rent, or operate to release Tenant from Tenant's
obligations.

          7.5 Tenant shall promptly notify Landlord of any accidents or defects
in the Building of which Tenant becomes aware, including defects in pipes,
electric wiring, and HVAC equipment, and of any condition which may cause injury
or damage to the Building or any person or property therein.

     8. QUIET ENJOYMENT. So long as an Event of Default has not occurred, Tenant
is entitled to the quiet enjoyment and peaceful possession of the Premises
subject to the provisions of this Lease.

     9. DEPOSIT. Tenant has deposited and will keep on deposit at all times
during the Term with Landlord the Deposit as security for the payment and
performance of Tenant's obligations under this Lease. If, at any time, Tenant is
in default, Landlord has the right to use the Deposit, or so much thereof as
necessary, in payment of Rent, in reimbursement of any expense incurred by
Landlord, and in payment of any damages incurred by Landlord by reason of such
default. In such event, Tenant shall on demand of Landlord forthwith remit to
Landlord a sufficient amount in cash to restore the Deposit to the original
amount. If the entire Deposit has not been utilized, the remaining amount will
be refunded to Tenant or to whoever is then the holder of Tenant's interest in
this Lease, without interest, within 60 days after full performance of this
Lease by Tenant. Landlord may commingle the Deposit with other funds of
Landlord. Landlord may deliver the Deposit to any purchaser of Landlord's
interest in the Premises and Landlord shall be discharged from further liability
therefor. Tenant agrees that if a Mortgagee succeeds to Landlord's interest in
the Premises by reason of foreclosure or deed in lieu of foreclosure, Tenant has
no claim against the Mortgagee for the Deposit or any portion thereof unless
such Mortgagee has actually received the same from Landlord. If claims of
Landlord exceed the Deposit, Tenant shall remain liable for the balance.

     10. CHARACTER OF OCCUPANCY. Tenant shall occupy the Premises for the
Permitted Use and for no other purpose, and use it in a careful, safe, and
proper manner and pay on demand for any damage to the Premises caused by misuse
or abuse by Tenant, Tenant's agents or employees, or any other person entering
upon the Premises under express or implied invitation of Tenant (collectively,
"Tenant's Agents"). Tenant, at Tenant's expense, shall comply with all
applicable federal, state, city, quasi-governmental and utility provider laws,
codes, rules, and regulations now or hereafter in effect ("Applicable Laws")
which impose any duty upon Landlord or Tenant with respect to the occupation or
alteration of the Premises. Tenant shall not commit or permit waste or any
nuisance on or in the Premises. Tenant agrees not to store, keep, use, sell,
dispose of or offer for sale in, upon or from the Premises any article or
substance prohibited by any insurance policy covering the Building Complex nor
shall Tenant keep, store, produce or dispose of on, in or from the Premises or
the Building Complex any substance which may be deemed an infectious waste or
hazardous substance under any Applicable Laws, except customary office and
cleaning supplies.

     11.  MAINTENANCE, ALTERATIONS AND REENTRY BY LANDLORD.

          11.1 Landlord will (i) make repairs and replacements to HVAC,
mechanical, life safety and electrical systems in the Premises (to the extent
such systems are Building standard) deemed necessary by Landlord for normal
operations of the Building Complex; and (ii) provide upkeep, maintenance, and
repairs to all Common Areas. Except as provided in this Section or otherwise
expressly required in this Lease, Landlord is not required to make improvements
or repairs to the Premises during the Term.

          11.2 Landlord or Landlord's agents may at any time enter the Premises
for examination and inspection, if Landlord elects, to perform any obligations
of Tenant which Tenant fails to perform, to perform such cleaning, maintenance,
janitorial

                                       7
<PAGE>   11

services, repairs, replacements, additions, or alterations as Landlord deems
necessary for the safety, improvement, or preservation of the Premises or other
portions of the Building Complex, or as required by Applicable Laws. Landlord or
Landlord's agents may also show the Premises to prospective tenants, purchasers
and Mortgagees. Any such reentry does not constitute an eviction or entitle
Tenant to abatement of Rent. Landlord may make such alterations or changes in
other portions of the Building Complex as Landlord desires so long as such
alterations and changes do not unreasonably interfere with Tenant's occupancy of
the Premises. Landlord may use the Common Areas and one or more street entrances
to the Building Complex as may be necessary in Landlord's judgment to complete
such work.

     12.  ALTERATIONS AND REPAIRS BY TENANT.

          12.1 Tenant shall not make any alterations to the Premises during the
Term, including installation of equipment or machinery which requires
modifications to existing electrical outlets or increases Tenant's usage of
electricity beyond Tenant's Standard Electrical Usage (collectively
"Alterations") without in each instance first obtaining the written consent of
Landlord. Landlord's consent or approval of the plans, specifications and
working drawings for any Alterations shall not constitute any warranty or
representation by Landlord (and shall not impose any liability on Landlord) as
to their completeness, design sufficiency, or compliance with Applicable Laws.
Tenant shall at its cost: pay all engineering and design costs incurred by
Landlord as to all Alterations, obtain all governmental permits and approvals
required, and cause all Alterations to be completed in compliance with
Applicable Laws and requirements of Landlord's insurance. All such work relating
to Alterations shall be performed in a good and workmanlike manner, using new
materials and equipment at least equal in quality to the Initial Tenant Finish.
All Alterations, repair and maintenance work performed by Tenant shall be done
at Tenant's expense by Landlord's employees or, with Landlord's prior consent
and subject to any conditions imposed by Landlord, by other persons requested by
Tenant; however, if such work is not performed by Landlord's employees, Tenant
shall pay Landlord a supervisory fee upon receipt of an invoice. If Landlord
authorizes such persons to perform work, Tenant shall deliver to Landlord prior
to commencement certificates issued by insurance companies qualified to do
business in the State of Colorado, evidencing that worker's compensation, public
liability insurance, and property damage insurance (in amounts, with companies
and on forms satisfactory to Landlord) are in force and maintained by all
contractors and subcontractors engaged to perform such work. All liability
policies shall name Landlord, Building Manager, and Mortgagee as additional
insureds. Each certificate shall provide that the insurance may not be canceled
or modified without 10 days' prior written notice to Landlord and Mortgagee.
Landlord also has the right to post notices in the Premises in locations
designated by Landlord stating that Landlord is not responsible for payment for
such work and containing such other information as Landlord deems necessary. All
such work shall be performed in a manner which does not unreasonably interfere
with Landlord or other tenants of the Building, or impose additional expense
upon Landlord in the operation of the Building Complex.

          12.2 Tenant shall keep the Premises in as good order, condition, and
repair and in an orderly state, as on the Commencement Date, loss by fire or
other casualty or ordinary wear excepted.

          12.3 All Alterations, including partitions, paneling, carpeting,
drapes or other window coverings, and light fixtures (but not including movable
office furniture not attached to the Building), are deemed a part of the real
estate and the property of Landlord and remain upon and be surrendered with the
Premises at the end of the Term, whether by lapse of time or otherwise, unless
Landlord notifies Tenant no later than 15 days prior to the end of the Term that
it elects to have Tenant remove all or part of such Alterations, and in such
event, Tenant shall at Tenant's expense promptly remove the Alterations
specified and restore the Premises to its prior condition, reasonable wear and
tear excepted.

     13. MECHANICS' LIENS. Tenant shall pay for all work done on the Premises by
Tenant or at its request (other than the Initial Tenant Finish) of a character
which may result in liens on Landlord's or Tenant's interest and Tenant will
keep the Premises free of all mechanics' liens, and other liens on account of
such work. Tenant indemnifies, defends, and saves Landlord harmless from all
liability, loss, damage, or expenses, including attorneys' fees, on account of
any claims of laborers, materialmen or others for work performed or for
materials or supplies furnished to Tenant or persons claiming under Tenant. If
any lien is recorded against the Premises or Building or any suit affecting
title thereto is commenced as a result of such work, or supplying of materials,
Tenant shall cause such lien to be removed of record within 5 days after notice
from Landlord. If Tenant desires to contest any claim, Tenant must furnish
Landlord adequate security of at least 150% of the amount of the claim, plus
estimated costs and interest and, if a final judgment establishing the validity
of any lien is entered, Tenant shall immediately pay and satisfy the same. If
Tenant fails to proceed as aforesaid, Landlord may pay such amount and any
costs, and the amount paid, together with reasonable attorneys' fees incurred,
shall be immediately due Landlord upon notice.

     14.  SUBLETTING AND ASSIGNMENT.

          14.1 Tenant shall not sublet any part of the Premises nor assign or
otherwise transfer this Lease or any interest herein (sometimes referred to as
"Transfer," and the subtenant or assignee may be referred to as "Transferee")
without the consent of Landlord first being obtained, which consent will not be
unreasonably withheld provided that: (1) Tenant complies with the provisions of
Section 14.4; (2) Landlord declines to exercise its rights under Section 14.3;
(3) the Transferee is engaged in a business and the portion of the Premises will
be used in a manner which is in keeping with the then standards

                                       8
<PAGE>   12

of the Building and does not conflict with any exclusive use rights granted to
any other tenant of the Building Complex; (4) the Transferee has reasonable
financial worth in light of the responsibilities involved; (5) Tenant is not in
default at the time it makes its request; (6) the Transferee is not a
governmental or quasi-governmental agency; (7) the Transferee is not a tenant or
currently negotiating a lease with Landlord in any Building owned by Landlord in
the Denver metropolitan area (including the Building Complex); and (8) the rent
to be paid by the Transferee is not less than the Rent paid by Tenant for such
space and is not less than 85% of the rental rate then being offered by Landlord
for similar space in the Building. Transfer includes a sale by Tenant of
substantially all of its assets or stock if Tenant is a publicly traded
corporation, a merger of Tenant with another corporation, the transfer of 25% or
more of the stock in a corporate tenant whose stock is not publicly traded, or
transfer of 25% or more of the beneficial ownership interests in a partnership
or limited liability company tenant.

          14.2 Following any Transfer in accordance with this Section 14,
Landlord may, after default by Tenant, collect rent from the Transferee or
occupant and apply the net amount collected to the Rent, but no Transfer or
collection will be deemed an acceptance of the Transferee or occupant as Tenant
or release Tenant from its obligations. Consent to a Transfer shall not relieve
Tenant from obtaining Landlord's consent to any other Transfer. Notwithstanding
Landlord's consent to a Transfer, Tenant shall continue to be liable for its
obligations. If Tenant collects any rent or other amounts from a Transferee in
excess of the Rent for any monthly period, Tenant shall pay Landlord the excess
monthly, as and when received.

          14.3 Notwithstanding the above, if Tenant requests Landlord's consent
to sublet 25% or more of the Premises, Landlord may refuse to grant such consent
in its sole discretion and terminate this Lease as to the portion of the
Premises with respect to which such consent was requested; provided, however, if
Landlord does not consent and elects to terminate the Lease as to such portion,
Tenant may within 15 days after notice from Landlord to this effect withdraw
Tenant's request for consent. If such termination occurs, it shall be effective
on the date designated in a notice from Landlord and shall not be more than 30
days following such notice.

          14.4 Tenant must notify Landlord at least 90 days prior to the desired
date of the Transfer ("Tenant's Notice"). Tenant's Notice shall describe the
portion of the Premises to be transferred and the terms and conditions. Landlord
has, without obligation, 60 days following receipt of Tenant's Notice to sublet
the space on Tenant's behalf or to exercise its rights pursuant to Section 14.3
if Tenant's Notice discloses that 25% or more of the Premises is involved. If
the space covered by Tenant's Notice is subleased by Landlord, rent and other
sums due from the subtenant will be paid to Tenant directly and Landlord has no
responsibility for the performance by such subtenant of its obligations under
its sublease with Tenant. If Landlord is unwilling or unable to locate a
subtenant (and, if applicable, declines to exercise its rights under Section
14.3), Landlord will notify Tenant not later than 60 days after receipt of
Tenant's Notice and Tenant shall be free to sublet the specified portion of the
Premises to any third party on terms substantially identical to those described
in Tenant's Notice, subject to Landlord's consent as set forth above. If Tenant
does not sublet such portion of the Premises within 60 days following Landlord's
notice to Tenant, Tenant must reoffer the Premises to Landlord in accordance
with the provisions hereof prior to subleasing to a third party.

          14.5 All documents utilized by Tenant to evidence a Transfer are
subject to approval by Landlord. Tenant shall pay Landlord's expenses, including
reasonable attorneys' fees, of determining whether to consent and in reviewing
and approving the documents. Tenant shall provide Landlord with such information
as Landlord reasonably requests regarding a proposed subtenant, including
financial information.

          14.6 If a trustee or debtor in possession in bankruptcy is entitled to
assume control over Tenant's rights under this Lease and assigns such rights to
any third party notwithstanding the provisions hereof, the rent to be paid by
such party shall be increased to the current Minimum Rent (if greater than that
being paid for the Premises) which Landlord charges for comparable space in the
Building as of the date of such third party's occupancy. If Landlord is entitled
under the Bankruptcy Code to "Adequate Assurance" of future performance of this
Lease, the parties agree that such term includes the following:

                  (1) Any assignee must demonstrate to Landlord's reasonable
satisfaction a net worth (as defined in accordance with generally accepted
accounting principles consistently applied) at least as large as the net worth
of Tenant on the Commencement Date increased by 7%, compounded annually, for
each year thereafter through the date of the proposed assignment. Tenant's
financial condition was a material inducement to Landlord in executing this
Lease.

                  (2) The assignee must assume and agree to be bound by the
provisions of this Lease.

     15. DAMAGE TO PROPERTY. Tenant agrees Landlord is not liable for any injury
or damage, either proximate or remote, occurring through or caused by fire,
water, steam, or any repairs, alterations, injury, accident, or any other cause
to the Premises, to any furniture, fixtures, Tenant improvements, or other
personal property of Tenant kept or stored in the Premises, or in other parts of
the Building Complex, whether by reason of the negligence or default of
Landlord, other occupants, any other person, or otherwise; and the keeping or
storing of all property of Tenant in the Premises and Building Complex is at the
sole risk of Tenant.

                                       9
<PAGE>   13

     16.  INDEMNITY TO LANDLORD.

          16.1 Tenant agrees to indemnify, defend, and hold Landlord and
Building Manager harmless from all liability, costs, or expenses, including
attorneys' fees, on account of damage to the person or property of any third
party, including any other tenant in the Building Complex, to the extent caused
by the negligence or breach of this Lease by the Tenant or Tenant's Agents.

          16.2 Tenant shall maintain throughout the Term a commercial general
liability policy, including protection against death, personal injury and
property damage, issued by an insurance company qualified to do business in the
State of Colorado, with a single limit of not less than $1,000,000.00. Such
policy shall name Landlord, Building Manager, and Mortgagee as additional
insureds, be primary to any other similar insurance of such additional insureds,
and provide that it may not be canceled or modified without at least 20 days'
prior notice to Landlord and Mortgagee. The minimum limits of such insurance do
not limit the liability of Tenant hereunder. Prior to occupancy of the Premises,
and prior to expiration of the then-current policy, Tenant shall deliver
certificates evidencing that insurance required under this Lease is in effect.

     17. SURRENDER AND NOTICE. Upon the expiration or other termination of this
Lease, Tenant shall immediately quit and surrender to Landlord the Premises
broom clean, in good order and condition, ordinary wear and tear and loss by
fire or other casualty excepted, and Tenant shall remove all of its movable
furniture and other effects, all telephone cable and related equipment in the
Building installed for Tenant, and such Alterations, as Landlord requires. If
Tenant fails to timely vacate the Premises as required, Tenant is responsible to
Landlord for all resulting costs and damages of Landlord, including any amounts
paid to third parties who are delayed in occupying the Premises.

     18.  INSURANCE, CASUALTY, AND RESTORATION OF PREMISES.

          18.1 Landlord shall maintain casualty insurance for the Building
Complex, the shell and core of the Building and the Premises in such amounts,
from such companies, and on such terms and conditions, including insurance for
loss of Rent as Landlord deems appropriate, from time to time.

          18.2 Tenant shall maintain throughout the Term "all risk" or
"multi-peril" insurance for the full replacement cost of Tenant's property and
betterments in the Premises, including tenant finish in excess of the Initial
Tenant Finish.

          18.3 If the Building is damaged by fire or other casualty which
renders the Premises wholly untenantable or the damage is so extensive that an
architect selected by Landlord certifies in writing to Landlord and Tenant
within 60 days of said casualty that the Premises cannot, with the exercise of
reasonable diligence, be made fit for occupancy within 180 working days from the
happening thereof, then, at the option of Landlord or Tenant exercised in
writing to the other within 30 days of such determination, this Lease shall
terminate as of the occurrence of such damage. In the event of termination,
Tenant shall pay Rent duly apportioned up to the time of such casualty and
forthwith surrender the Premises and all interest. If Tenant fails to do so,
Landlord may reenter and take possession of the Premises and remove Tenant. If,
however, the damage is such that the architect certifies that the Premises can
be made tenantable within such 180-day period or neither Landlord or Tenant
elects to terminate the Lease despite the extent of damage, then the provisions
below apply.

          18.4 If the Premises are damaged by fire or other casualty that does
not render it wholly untenantable or require a repair period in excess of 180
days, Landlord shall with reasonable promptness except as hereafter provided
repair the Premises to the extent of the Initial Tenant Finish.

          18.5 If the Building is damaged (though the Premises may not be
affected, or if affected, can be repaired within 180 days) and within 60 days
after the damage Landlord decides not to reconstruct or rebuild the Building,
then, notwithstanding anything contained herein, upon notice to that effect from
Landlord within said 60 days, Tenant shall pay the Rent apportioned to such
date, this Lease shall terminate from the date of such notice, and both parties
discharged from further obligations except as otherwise expressly provided.

          18.6 Landlord and Tenant waive all rights of recovery against the
other and its respective officers, partners, members, agents, representatives,
and employees for loss or damage to its real and personal property kept in the
Building Complex, or for loss of business arising out of or related the use and
occupancy of the Premises which is capable of being insured against under all
risk or multi-peril insurance, including coverage for damage due to water
leakage. Tenant also waives all such rights of recovery against Building
Manager. Each party shall, upon obtaining the property damage insurance required
by this Lease, notify the insurance carrier that the foregoing waiver is
contained in this Lease and use reasonable efforts to obtain an appropriate
waiver of subrogation provision in the policies.

          18.7 Rent shall abate during any period of repair and restoration to
the extent of any recovery by Landlord under its loss of rent insurance related
to the Premises in the same proportion that the part of the Premises rendered
untenantable bears to the whole.

                                       10
<PAGE>   14
     19. CONDEMNATION. If the Premises or substantially all of it or any portion
of the Building Complex which renders the Premises untenantable is taken by
right of eminent domain, or by condemnation (which includes a conveyance in lieu
of a taking), this Lease, at the option of either Landlord or Tenant exercised
by notice to the other within 30 days after the taking, shall terminate and Rent
shall be apportioned as of the date of the taking. Tenant shall forthwith
surrender the Premises and all interest in this Lease, and, if Tenant fails to
do so, Landlord may reenter and take possession of the Premises. If less than
all the Premises is taken, Landlord shall promptly repair the Premises as nearly
as possible to its condition immediately prior to the taking, unless Landlord
elects not to rebuild under Section 18.5. Landlord shall receive the entire
award or consideration for the taking.

     20.  DEFAULT BY TENANT.

          20.1    Each of the following events is an "Event of Default":

                  (1) Any failure by Tenant to pay Rent on the due date unless
such failure is cured within 3 days after the due date;

                  (2) Tenant vacates or abandons the Premises;

                  (3) This Lease or Tenant's interest is transferred whether
voluntarily or by operation of law except as permitted in Section 14;

                  (4) This Lease or any part of the Premises is taken by process
of law and is not released within 15 days after a levy;

                  (5) Commencement by Tenant of a proceeding under any provision
of federal or state law relating to insolvency, bankruptcy, or reorganization
("Bankruptcy Proceeding");

                  (6) Commencement of a Bankruptcy Proceeding against Tenant,
unless dismissed within 60 days after commencement;

                  (7) The insolvency of Tenant or execution by Tenant of an
assignment for the benefit of creditors; the convening by Tenant of a meeting of
its creditors or any significant class thereof for purposes of effecting a
moratorium upon or extension or composition of its debts; or the failure of
Tenant generally to pay its debts as they mature;

                  (8) The admission in writing by Tenant (or any general partner
of Tenant if Tenant is a partnership), that it is unable to pay its debts as
they mature or it is generally not paying its debts as they mature;

                  (9) Tenant fails to take possession of the Premises on the
Commencement Date;

                  (10) Tenant fails to perform any of its other obligations and
non-performance continues for 30 days after notice by Landlord or, if such
performance cannot be reasonably had within such 30 day period, Tenant does not
in good faith commence performance within such 30 day period and diligently
proceed to completion; provided, however, Tenant's right to cure shall not
exceed the period provided by Applicable Law.

          20.2    Remedies of Landlord.  If an Event of Default occurs, Landlord
may then or at any time thereafter, either:

                  (1) (a) Without further notice except as required by
Applicable Laws, reenter and repossess the Premises or any part and expel Tenant
and those claiming through or under Tenant and remove the effects of both
without being deemed guilty of any manner of trespass and without prejudice to
any remedies for arrears of Rent or preceding breach of this Lease. Should
Landlord reenter or take possession pursuant to legal proceedings or any notice
provided for by Applicable Law, Landlord may, from time to time, without
terminating this Lease, relet the Premises or any part, either alone or in
conjunction with other portions of the Building Complex, in Landlord's or
Tenant's name but for the account of Tenant, for such periods (which may be
greater or less than the period which would otherwise have constituted the
balance of the Term) and on such conditions and upon such other terms (which may
include concessions of free rent and alteration and repair of the Premises) as
Landlord, in its sole discretion, determines and Landlord may collect the rents
therefor. Landlord is not in any way responsible or liable for failure to relet
the Premises, or any part thereof, or for any failure to collect any rent due
upon such reletting. No such reentry or repossession or notice from Landlord
shall be construed as an election by Landlord to terminate this Lease unless
specific notice of such intention is given Tenant. Landlord reserves the right
following any reentry and/or reletting to exercise its right to terminate this
Lease by giving Tenant notice, in which event this Lease will terminate as
specified in the notice.

                      (b)  If Landlord takes possession of the Premises without
terminating this Lease, Tenant shall pay Landlord (i) the Rent which would be
payable if repossession had not occurred, less (ii) the net proceeds, if any, of
any reletting of the Premises after deducting all of Landlord's expenses
incurred in connection with such reletting, including all

                                       11
<PAGE>   15

repossession costs, brokerage commissions, attorneys' fees, expenses of
employees, alteration, and repair costs (collectively "Reletting Expenses"). If,
in connection with any reletting, the new lease term extends beyond the Term or
the premises covered thereby include other premises not part of the Premises, a
fair apportionment of the rent received from such reletting and the Reletting
Expenses, will be made in determining the net proceeds received from the
reletting. In determining such net proceeds, rent concessions will also be
apportioned over the term of the new lease. Tenant shall pay such amounts to
Landlord monthly on the days on which the Rent would have been payable if
possession had not been retaken, and Landlord is entitled to receive the same
from Tenant on each such day; or

                  (2) Give Tenant notice of termination of this Lease on the
date specified and, on such date, Tenant's right to possession of the Premises
shall cease and the Lease will terminate except as to Tenant's liability as
hereafter provided as if the expiration of the term fixed in such notice were
the end of the Term. If this Lease terminates pursuant to this Section, Tenant
remains liable to Landlord for damages in an amount equal to the Rent which
would have been owing by Tenant for the balance of the Term had this Lease not
terminated, less the net proceeds, if any, of reletting of the Premises by
Landlord subsequent to termination after deducting Reletting Expenses. Landlord
may collect such damages from Tenant monthly on the days on which the Rent would
have been payable if this Lease had not terminated and Landlord shall be
entitled to receive the same from Tenant on each such day. Alternatively, if
this Lease is terminated, Landlord at its option may recover forthwith against
Tenant as damages for loss of the bargain and not as a penalty an amount equal
to the worth at the time of termination of the excess, if any, of the Rent
reserved in this Lease for the balance of the Term over the then Reasonable
Rental Value of the Premises for the same period plus all Reletting Expenses.
"Reasonable Rental Value" is the amount of rent Landlord can obtain for the
remaining balance of the Term.

          20.3 Recapture of Rent Concessions and Tenant Improvement Allowances.
In the Event of Default by Tenant, in addition to all other rights and remedies,
Landlord shall be entitled to receive from Tenant all sums, the payment of which
may previously have been waived or abated by Landlord, or which may have been
paid by Landlord pursuant to any agreement to grant Tenant a rental abatement or
other monetary inducement or concession, including but not limited to any tenant
improvement or finish allowance or moving allowance, together with interest
thereon from the date or dates such amounts were paid by Landlord or would have
been due from Tenant but for the abatement, at the rate of eighteen percent
(18%) per annum, until paid; it being understood and agreed that such concession
or abatement was made on the condition and basis that Tenant fully perform all
obligations and covenants under the Lease for the entire term.

          20.4 Cumulative Remedies. Suits to recover Rent and damages may be
brought by Landlord, from time to time, and nothing herein requires Landlord to
await the date the Term would expire had there been no Event of Default or
termination, as the case may be. Each right and remedy provided for in this
Lease is cumulative and non-exclusive and in addition to every other right or
remedy now or hereafter existing at law or equity, including suits for
injunctive relief and specific performance. The exercise or beginning of the
exercise by Landlord of one or more rights or remedies shall not preclude the
simultaneous or later exercise by Landlord of other rights or remedies. All
costs incurred by Landlord to collect any Rent and damages or to enforce this
Lease are also recoverable from Tenant. If any suit is brought because of an
alleged breach of this Lease, the prevailing party is also entitled to recover
from the other party all reasonable attorneys' fees and costs incurred in
connection therewith.

          20.5 No Waiver. No failure by Landlord to insist upon strict
performance of any provision or to exercise any right or remedy upon a breach
thereof, and no acceptance of full or partial Rent during the continuance of any
breach constitutes a waiver of any such breach or such provision, except by
written instrument executed by Landlord. No waiver shall affect or alter this
Lease but each provision hereof continues in effect with respect to any other
then existing or subsequent breach thereof.

          20.6 Bankruptcy. Nothing contained in this Lease limits Landlord's
right to obtain as liquidated damages in any bankruptcy or similar proceeding
the maximum amount allowed by law at the time such damages are to be proven,
whether such amount is greater, equal to, or less than the amounts recoverable,
either as damages or Rent, referred to in any of the preceding provisions of
this Section. Notwithstanding anything in this Section to the contrary, any
proceeding described in Section 20.1(5),(6),(7) and (8) is an Event of Default
only when such proceeding is brought by or against the then holder of the
leasehold estate under this Lease.

          20.7 Late Payment Charge. Any Rent not paid within 3 days after the
due date shall thereafter bear interest at 5 percentage points above the Prime
Rate or the highest rate permitted by law, whichever is lower, until paid.
Further, if such Rent is not paid within 3 days after the due date, Tenant
agrees Landlord will incur additional administrative expenses, the amount of
which will be difficult to determine; Tenant therefore shall also pay Landlord a
late charge for each late payment of 5% of such payment. Any amounts paid by
Landlord to cure a default of Tenant which Landlord has the right but not the
obligation to do, shall, if not repaid by Tenant within 3 days of demand by
Landlord, thereafter bear interest at 5 percentage points above the Prime Rate
until paid. "Prime Rate" means that rate announced by Wells Fargo Bank, N.A., or
its successor, as its prime rate on the date closest to the date interest
commences.

          20.8 Waiver of Jury Trial.  Tenant and Landlord waive any right to a
trial by jury in suits arising out of or concerning the provisions of this
Lease.

                                       12
<PAGE>   16
     21. DEFAULT BY LANDLORD. In the event of any alleged default on the part of
Landlord, Tenant shall give notice to Landlord and afford Landlord a reasonable
opportunity to cure such default. Such notice shall be ineffective unless a copy
is simultaneously also delivered in the manner required in this Lease to any
holder of a mortgage and/or deed of trust affecting all or any portion of the
Building Complex (collectively, "Mortgagee"), provided that prior to such notice
Tenant has been notified (by way of notice of Assignment of Rents and Leases, or
otherwise), of the address of a Mortgagee. If Landlord fails to cure such
default within the time provided, then Mortgagee shall have an additional 30
days following a second notice from Tenant or, if such default cannot be cured
within that time, such additional time as may be necessary provided within such
30 days, Mortgagee commences and diligently pursues a cure (including
commencement of foreclosure proceedings if necessary to effect such cure).
Tenant's sole remedy will be equitable relief or actual damages but in no event
is Landlord or any Mortgagee responsible for consequential damages or lost
profit incurred by Tenant as a result of any default by Landlord.

     22.  SUBORDINATION AND ATTORNMENT.

          22.1 This Lease will be subordinate to any mortgage, deed of trust and
related documents now or hereafter placed upon the Building Complex (including
all advances made thereunder), and to all amendments, renewals, replacements, or
restatements thereof (collectively, "Mortgage"), unless Landlord or Mortgagee
advises Tenant that it will not be subordinate. Tenant agrees that no
documentation other than this Lease is required to evidence such subordination.

          22.2 If any Mortgagee elects to have this Lease superior to the lien
of its Mortgage and gives notice to Tenant, this Lease will be deemed prior to
such Mortgage whether this Lease is dated prior or subsequent to the date of
such Mortgage or the date of recording thereof.

          22.3 In confirmation of subordination or superior position, as the
case may be, Tenant will execute such documents as may be required by Mortgagee
and, if it fails to do so within 10 days after demand, Tenant hereby irrevocably
appoints Landlord as Tenant's attorney-in-fact in Tenant's name, place, and
stead to do so.

          22.4 Tenant hereby attorns to all successor owners of the Building,
whether such ownership is acquired by sale, foreclosure of a Mortgage, or
otherwise.

          22.5 If it becomes necessary to foreclose the Mortgage, Mortgagee
shall neither terminate the Lease nor join Tenant in summary or foreclosure
proceedings so long as Tenant is not in default under any of the terms,
covenants, or conditions of the Lease. If Mortgagee succeeds to the interest of
Landlord under the Lease, Mortgagee shall not be: (a) liable for any act or
omission of any prior landlord (including Landlord); (b) liable for the return
of any security deposit unless such deposit has been delivered to the Mortgagee
by Landlord or is in an escrow fund available to Mortgagee; (c) subject to any
offsets or defenses that Tenant might have against any prior landlord (including
Landlord); (d) bound by any Rent or additional Rent that Tenant might have paid
for more than the current month to any prior landlord (including Landlord); (e)
personally liable under the Lease, Mortgagee's liability thereunder being
limited to its interest in the Real Property; or (f) bound by any notice of
termination given by Landlord to Tenant without Mortgagee's prior written
consent thereto.

          22.6 Tenant acknowledges that a current Mortgagee requires that Rent
payable to Landlord under this Lease be paid directly by Tenant to Mortgagee
upon a default by Landlord under the Mortgage. After receipt of notice from
Mortgagee to Tenant, at the address set forth above (or at such other address of
which Mortgagee has been notified in writing), Tenant shall pay to Mortgagee all
monies due or to become due to Landlord under the Lease. Tenant shall have no
responsibility to ascertain whether such demand by Mortgagee is permitted under
the Mortgage, or to inquire into the existence of a default. Landlord hereby
waives any right, claim, or demand it may now or hereafter have against Tenant
by reason of such payment to Mortgagee, and any such payment shall discharge the
obligations of Tenant to make such payment to Landlord.

     23.  REMOVAL OF TENANT'S PROPERTY.

          23.1 All movable personal property of Tenant not removed from the
Premises upon vacation, abandonment, or termination of this Lease shall be
conclusively deemed abandoned and may be sold, or otherwise disposed of by
Landlord without notice to Tenant and without obligation to account; Tenant
shall pay Landlord's expenses in connection with such disposition.

          23.2 Subject to any purchase money security interests granted by
Tenant, Tenant conveys to Landlord all of Tenant's property at any time situated
on the Premises (and all replacements) as security for the performance of its
obligations; Tenant shall execute such documents as Landlord requires to
evidence and perfect Landlord's security interest, and for this purpose this
Lease is considered a security agreement covering such personal property. Upon
the occurrence of an Event of Default, Landlord may exercise all rights of a
secured party under the Colorado Uniform Commercial Code. Such security interest
is prior and superior to any other security interest except a purchase money
security interest. Tenant's property shall not be removed from the Premises
without Landlord's consent unless such property is replaced with an item of
equal or greater value.

                                       13
<PAGE>   17
     24. HOLDING OVER: TENANCY MONTH-TO-MONTH. If, after the expiration or
termination of this Lease, Tenant remains in possession of the Premises and
continues to pay rent without a written agreement as to such holding over, even
though Landlord accepts such rent, such possession is a tenancy from
month-to-month, subject to all provisions hereof but at a monthly rent
equivalent to 200% of the monthly Rent paid by Tenant immediately prior to such
expiration or termination. Rent shall continue to be payable in advance on the
first day of each calendar month. Such tenancy may be terminated by either party
upon 10 days' notice prior to the end of any monthly period. Nothing contained
herein obligates Landlord to accept rent tendered after the expiration of the
Term or relieves Tenant of its liability under Section 17.

     25. PAYMENTS AFTER TERMINATION. No payments by Tenant after expiration or
termination of this Lease or after any notice (other than a demand for payment
of money) by Landlord to Tenant reinstates, continues, extends the Term, or
affects any notice given to Tenant prior to such payments. After notice,
commencement of a suit, or final judgment granting Landlord possession of the
Premises, Landlord may collect any amounts due or otherwise exercise Landlord's
remedies without waiving any notice or affecting any suit or judgment.

     26. STATEMENT OF PERFORMANCE. Tenant agrees at any time upon not less than
10 days' notice to execute and deliver to Landlord a written statement
certifying that this Lease is unmodified and in full force and effect (or, if
there have been modifications, that the same is in full force and effect as
modified stating the modifications); that there have been no defaults by
Landlord or Tenant (or, if there have been defaults, setting forth the nature
thereof); the date to which Rent has been paid in advance and such other
information as Landlord requests. Such statement may be relied upon by a
prospective purchaser of Landlord's interest or Mortgagee. Tenant's failure to
timely deliver such statement is conclusive upon Tenant that: (i) this Lease is
in full force and effect without modification except as may be represented by
Landlord; (ii) there are no uncured defaults in Landlord's performance; and
(iii) not more than 1 month's Rent has been paid in advance. Upon request,
Tenant will furnish Landlord an appropriate resolution confirming that the party
signing the statement is authorized to do so.

     27.  MISCELLANEOUS.

          27.1 Transfer by Landlord. The term "Landlord" means so far as
obligations of Landlord are concerned, only the owner of the Building at the
time in question and, if any transfer of the title occurs, Landlord herein named
(and in the case of any subsequent transfers, the then grantor) is automatically
released from and after the date of such transfer of all liability as respects
performance of any obligations of Landlord thereafter to be performed. Any funds
in Landlord's possession at the time of transfer in which Tenant has an interest
will be turned over to the grantee and any amount then due Tenant under this
Lease will be paid to Tenant.

          27.2 No Merger. The termination or mutual cancellation of this Lease
will not work a merger, and such termination or cancellation will at the option
of Landlord either terminate all subleases or operate as an automatic assignment
to Landlord of such subleases.

          27.3 Common Area Use.  Landlord may use any of the Common Areas for
the purposes of completing or making repairs or alterations in any portion of
the Building Complex.

          27.4 Independent Covenants. This Lease is to be construed as though
the covenants between Landlord and Tenant are independent and not dependent and
Tenant is not entitled to any setoff of the Rent against Landlord if Landlord
fails to perform its obligations; provided, however, the foregoing does not
impair Tenant's right to commence a separate suit against Landlord for any
default by Landlord so long as Tenant complies with Section 21.

          27.5 Validity of Provisions. If any provision is invalid under present
or future laws, then it is agreed that the remainder of this Lease is not
affected and that in lieu of each provision that is invalid, there will be added
as part of this Lease a provision as similar to such invalid provision as may be
possible and is valid and enforceable.

          27.6 Captions. The caption of each Section is added for convenience
only and has no effect in the construction of any provision of this Lease.

          27.7 Construction. The parties waive any rule of construction that
ambiguities are to be resolved against the drafting party. Any words following
the words "include," "including," "such as," "for example," or similar words or
phrases shall be illustrative only and are not intended to be exclusive, whether
or not language of non-limitation is used.

          27.8 Applicability. Except as otherwise provided, the provisions of
this Lease are applicable to and binding upon Landlord's and Tenant's respective
heirs, successors and assigns. Such provisions are also considered to be
covenants running with the land to the fullest extent permitted by law.

          27.9 Authority. Tenant and the party executing this Lease on behalf of
Tenant represent to Landlord that such party is authorized to do so by requisite
action of Tenant and agree, upon request, to deliver Landlord a resolution,
similar document, or opinion of counsel to that effect.

                                       14
<PAGE>   18
          27.10 Severability. If there is more than one party which is the
Tenant, the obligations imposed upon Tenant are joint and several.

          27.11 Acceptance of Keys, Rent or Surrender. No act of Landlord or its
representatives during the Term, including any agreement to accept a surrender
of the Premises or amend this Lease, is binding on Landlord unless such act is
by a partner, member or officer of Landlord, as the case may be, or other party
designated in writing by Landlord as authorized to act. The delivery of keys to
Landlord or its representatives will not operate as a termination of this Lease
or a surrender of the Premises. No payment by Tenant of a lesser amount than the
entire Rent owing is other than on account of such Rent nor is any endorsement
or statement on any check or letter accompanying payment an accord and
satisfaction. Landlord may accept payment without prejudice to Landlord's right
to recover the balance or pursue any other remedy available to Landlord.

          27.12 Building Name and Size. Landlord may as it relates to the
Building and Building Complex: change the name, increase the size by adding
additional real property, construct other buildings or improvements, change the
location and/or character, or make alterations or additions. If additional
buildings are constructed or the size is increased, Landlord and Tenant shall
execute an amendment which incorporates any necessary modifications to Tenant's
Pro Rata Share. Tenant may not use the Building's name for any purpose other
than as part of its business address.

          27.13 Diminution of View. Tenant agrees that no diminution of light,
air, or view from the Building entitles Tenant to any reduction of Rent under
this Lease, results in any liability of Landlord, or in any way affects Tenant's
obligations.

          27.14 Limitation of Liability. Notwithstanding anything to the
contrary contained in this Lease, Landlord's liability is limited to Landlord's
interest in the Building.

          27.15 Non-Reliance.  Tenant confirms it has not relied on any
statements, representations, or warranties by Landlord or its representatives
except as set forth herein.

          27.16 Written Modification.  No amendment or modification of this
Lease is valid or binding unless in writing and executed by the parties.

          27.17 Lender's Requirements. Tenant will make such modifications to
this Lease as may hereafter be required to conform to any lender's requirements,
so long as such modifications do not increase Tenant's obligations or materially
alter its rights.

          27.18 Effectiveness. Submission of this instrument for examination or
signature by Tenant does not constitute a reservation of or option to lease and
it is not effective unless and until execution and delivery by both Landlord and
Tenant.

          27.19 Survival. This Lease, notwithstanding expiration or termination,
continues in effect as to any provisions requiring observance or performance
subsequent to termination or expiration.

          27.20 Time of Essence.  Time is of the essence herein.

          27.21 Rules and Regulations. If rules and regulations are attached
hereto, they are a part of this Lease and Tenant agrees that Tenant and Tenant's
Agents shall at all times abide by such rules and regulations.

          27.22 Recording.  Tenant will not record this Lease.  Recording of the
Lease by or on behalf of Tenant is an Event of Default.

     28.  AUTHORITIES FOR ACTION AND NOTICE.

          28.1 Unless otherwise provided, Landlord may act through Landlord's
Building Manager or other designated representatives from time to time.

          28.2 All notices or other communications required or desired to be
given to Landlord must be in writing and shall be deemed received when delivered
personally to any officer, partner, or member of Landlord (depending upon the
nature of Landlord) or the manager of the Building (the "Building Manager")
whose office is in the Building, or when deposited in the United States mail,
postage prepaid, certified or registered, return receipt requested, addressed as
provided in Section 1.10. All notices or communications required or desired to
be given to Tenant shall be in writing and deemed duly served when delivered
personally to any officer, employee, partner, or member of Tenant (depending
upon the nature of Tenant), individually if a sole proprietorship, or manager of
Tenant whose office is in the Building, or when deposited in the United States
mail, postage prepaid, certified or registered, return receipt requested,
addressed as provided in Section 1.12. Either party may designate in writing
served as above provided a different address to which notice is to be mailed.
The foregoing does not prohibit notice from being given as provided in Rule 4 of
Colorado Rules of Civil Procedure, as amended from time to time.

                                       15
<PAGE>   19
     29. PARKING. Landlord will make available parking spaces up to Tenant's
Maximum set forth in Section 1.9, if any, for Tenant's use during the term
hereof. Tenant shall notify Landlord on or before the Commencement Date of the
number of parking spaces up to Tenant's Maximum it will initially require and,
thereafter, Tenant shall give Landlord written notice at least 30 days prior to
the date that Tenant shall require the use of any parking spaces in addition to
those initially accepted, the total of which shall not exceed Tenant's Maximum.
Tenant shall pay the monthly rate in effect for each parking space utilized as
such rate may change from time to time. The monthly parking rates are currently
as follows: $65.00 for an assigned reserved space, $40 for an unassigned covered
space, and $20 for an unassigned deck (uncovered) space. Landlord reserves the
right to determine the type of parking spaces allocated for Tenant's use. Tenant
will receive one monthly bill for all spaces taken which shall be paid in the
same manner and at the same place as Minimum Rent for the Premises. Tenant has
no rights to use parking spaces except as provided in this Section. The right
granted to Tenant to use any space is a license only and Landlord's inability to
make any space available at any time for reasons beyond Landlord's reasonable
control is not a material breach by Landlord of its obligations hereunder. The
abatement of Tenant's obligation to pay for unavailable spaces during any period
of unavailability constitutes Tenant's sole remedy. If Tenant fails to timely
pay a parking bill, in addition to being a default under the Lease, Tenant may,
at Landlord's option, forfeit its right to all parking spaces. All vehicles
parked in the parking garage and the personal property therein shall be at the
sole risk of Tenant, Tenant's Agents and the users of such spaces and Landlord
shall have no liability for loss or damage thereto for whatever cause.

     30. SUBSTITUTE PREMISES. Landlord has the right at any time upon 30 days'
prior notice to Tenant to substitute other space within the Building, including
substantially comparable tenant finish, for the Premises (the "Substitute
Premises"). Tenant shall relocate to the Substitute Premises on the date
specified in Landlord's notice which will be no sooner than 30 days after
notice. Landlord will pay all reasonable expenses incurred by Tenant to move its
furniture, fixtures, and equipment to the Substitute Premises. The suite number
designation and Exhibit A shall be deemed revised to reflect the description of
the Substitute Premises. Except for such revisions, the provisions of this Lease
are applicable to the Substitute Premises which are the Premises following
Tenant's move.

     31. BROKERAGE. Tenant represents it has not employed any broker with
respect to this Lease and has no knowledge of any broker's involvement in this
transaction except those listed in Sections 1.14 and 1.15 (collectively, the
"Brokers"). Tenant shall indemnify Landlord against any expense incurred by
Landlord as a result of any claim for commissions or fees by any other broker,
finder, or agent, whether or not meritorious, employed by Tenant or claiming by,
through, or under Tenant, other than the Brokers. Tenant acknowledges Landlord
is not liable for any representations by the Brokers regarding the Premises,
Building, Building Complex, or this Lease.

     32. LEGAL FEES; PREPARATION OF LEASE. Tenant acknowledges that if Landlord
incurs legal fees in connection with the preparation and negotiation of this
Lease in excess of $1,854.00, the amount of such excess shall, at Landlord's
option, be payable to Landlord as a one-time payment of additional Rent promptly
upon the final determination of Landlord's legal fees.

     33. COUNTERPARTS. This Lease may be executed in two or more counterparts,
each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument. Any one or more counterpart signature
pages may be removed from one counterpart of the Lease and annexed to another
counterpart of the Lease to form a completely executed original instrument
without impairing the legal effect of the signature thereon.

     34. ADDENDUM/EXHIBITS.  Any Addenda or Exhibits referred to herein are
attached hereto and incorporated herein by reference.

     35. OPTION TO EXTEND.  Landlord grants Tenant an option (the "Option") to
extend the term of the Lease for one (1) additional term of three (3) years (the
"Option Term"). The Option applies only to the Premises and is on the following
conditions:

     35.1 Notice of Tenant's interest in exercising the Option must be given to
Landlord no earlier than twelve (12) months and no later than six (6) months
prior to the Expiration Date ("Tenant's Notice"). Not later than thirty (30)
days after receiving Tenant's Notice, Landlord will notify Tenant of the Minimum
Rent applicable during the Option Term in accordance with subsection 35.5 below
("Landlord's Notice").

     35.2 Tenant has 15 days after receipt of Landlord's Notice to exercise the
Option by delivering notice of exercise to Landlord. If Tenant timely exercises
the Option, the Term will be deemed extended on the terms of this Section and
the parties will execute an amendment evidencing the extension.

     35.3 Unless Landlord is timely notified by Tenant in accordance with
subparagraphs 35.1 and 35.2 above, it will be conclusively deemed that Tenant
has not exercised the Option and the Lease will expire in accordance with its
terms on the Expiration Date.

     35.4 Tenant's rights pursuant to this Paragraph are personal to Tenant and
may not be assigned. Tenant's right to exercise the Option is conditioned on:
(i) Tenant not being in default at the time of exercise or at the time of
commencement of the

                                       16
<PAGE>   20

Option Term; (ii) Tenant not having subleased or vacated more than 25% of the
Premises or assigned its interest under the Lease as of the commencement of the
Option Term; and (iii) Tenant having the financial ability to perform its
obligations under the Option Term. Upon an assignment of the Lease, this
Paragraph is null and void.

     35.5 The Option granted hereunder will be upon the terms of the Lease,
except that the Minimum Rent during the Option Term will be the rate at which
Landlord would lease space in the Building comparable to the Premises to third
parties if such space were available for leasing for a lease term paralleling
the Option Term, but in no event will the Minimum Rent be less than the Rent in
effect immediately prior to commencement of the Option Term. Such Rent may
include escalations and pass-throughs.

     35.6 After exercise, or failure to exercise the Option, Tenant shall have
no further rights to extend the Term.

     IN WITNESS WHEREOF, the parties have executed this Lease as of the day and
year first above written and it is effective upon delivery of a fully-executed
copy to Tenant.

<TABLE>
<S>                                               <C>
ENERGY AUCTION EXCHANGE, INC.,  a Delaware        PRENTICE POINT LIMITED PARTNERSHIP, a
corporation                                       Delaware limited partnership

                                                  By:  PRENTICE POINT, INC., General Partner
By: /s/
   -----------------------------------------
Print Name:                                            By: /s/ Charles McIntyre
           ---------------------------------              -----------------------------------------
Print Title:                                                     Charles McIntyre, Vice President
            --------------------------------
                                                                           "Landlord"
ATTEST:

By: /s/
   -----------------------------------------
Print Name:
           ---------------------------------
Print Title:
            --------------------------------
               "Tenant"
</TABLE>

                                       17
<PAGE>   21

                               EXHIBIT A TO LEASE

                               DIAGRAM OF PREMISES

<PAGE>   22

                               EXHIBIT B TO LEASE

                                  REAL PROPERTY

Parcel 1:

That part of Lot 3, Block 2, A RESUBDIVISION OF BLOCK 6, DENVER
TECHNOLOGICAL CENTER FILING NO. 2, described as follows:

Beginning at the Northeast corner of said Block 2;
thence Southerly along the Easterly line of said Block 2, the same being the
Westerly line of South Wabash Street, a distance of 437.78 feet to a point of
curvature; thence along a curve to the right with a radius of 75.00 feet and a
central angle of 2(degree)59'53" an arc distance of 3.92 feet; thence along a
curve to the right whose tangent makes an angle to the right of 26(degree)06'30"
from the tangent of the preceding curve and having a radius of 80.00 feet and a
central angle of 77(degree)04'05" an arc distance of 107.61 feet to a point of
tangency; thence along the tangent to the aforesaid curve 141.62 feet; thence at
a deflection angle of 14(degree)28'39" to the left 120.00 feet to a point on the
Northeasterly line of East Prentice Avenue; thence Northwesterly along said
Northeasterly line at East Prentice a distance of 32.60 feet; thence
Northeasterly at an angle of 88(degree)18'38" to the right a distance of 438.06
feet to the North line of said Block 2; thence Easterly at an angle of
74(degree)47'33" to the right and along said North line, a distance of 270.00
feet to the point of beginning,

County of Arapahoe,
State of Colorado.

Parcel 2:

That part of Lot 3, Block 2, A RESUBDIVISION OF BLOCK 6, DENVER
TECHNOLOGICAL CENTER FILING NO. 2, described as follows:

Commencing at the Northeast corner of said Block 2;
thence Westerly along the North line of said Block 2, a distance of 270.00 feet
to the TRUE POINT OF BEGINNING; thence continuing along said North line of Block
2, a distance of 98.43 feet; thence Southwesterly at a deflection angle of
89(degree)16'39" to the left 203.35 feet; thence on an angle to the left of
90(degree)00'00", a distance of 45.57 feet; thence on an angle to the left of
75(degree)30'54", a distance of 211.31 feet to the TRUE POINT OF BEGINNING,
County of Arapahoe, State of Colorado.

Parcel 3:

An easement for ingress and egress granted in First Amended and Restated Cross
Easement Agreement by and between The Dow Chemical Company and Prentice Point,
Ltd. recorded September 8, 1989, in Book 5769, at Page 19, County of Arapahoe,
State of Colorado.

Parcel 4:

A license to construct, operate, maintain, repair and replace a concrete
courtyard across the City of Aurora's Rampart Waterline Easement, as granted by
the City of Aurora, Colorado, pursuant to a License Agreement dated August 16,
1985 and recorded September 10, 1985 in Book 4541 at page 336, as assigned to
Prentice Point Associates, L.P., a California limited partnership by Assignment
thereof recorded June 3, 1994 in Book 7581 at Page 122, as assigned to Prentice
Point Limited Partnership, a Delaware limited partnership, by Assignment thereof
recorded January 1, 1997, at Reception No. R7003471.
County of Arapahoe,
State of Colorado.

<PAGE>   23
                                    EXHIBIT C

                               PREMISES COMPLETION
                             [Intentionally Deleted]

<PAGE>   24

                               EXHIBIT D TO LEASE

                            FIRST AMENDMENT TO LEASE

                  THIS FIRST AMENDMENT TO LEASE (this "Amendment") is made this
day of , 1999 by and between PRENTICE POINT LIMITED PARTNERSHIP, a Delaware
limited partnership ("Landlord"), and ENERGY AUCTION EXCHANGE, INC., a Delaware
corporation ("Tenant").

                                   WITNESSETH

          WHEREAS, Landlord and Tenant are parties to a Office Lease dated _____
("Lease") for premises located at Suite 815 on the eighth floor of the building
known as Prentice Point (the "Premises").

          WHEREAS, the parties desire to confirm certain terms of the Lease, and
to amend the Lease accordingly.

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

          1.      Incorporation of Recitals.   The recitals set forth in the
WHEREAS clauses above are incorporated herein and made part of this Amendment to
the same extent as if set forth herein in full.

          2.      Confirmation of Certain Terms.   Notwithstanding anything to
the contrary in the Lease, Landlord and Tenant hereby certify as follows:

                  2.1 The Delivery Date under Section 5 of the Lease occurred
on _____________________, 19___.

                  2.2 The Commencement Date under the Lease is
____________________, 19___.

                  2.3 The Expiration Date under the Lease is
____________________, 19___.

                  2.4 The initial monthly Minimum Rent due under the Lease is
$_______________________.

                  2.5 The Finish Work is completed in accordance with Section
5.1 and 5.2 of the Lease, and Landlord has no further obligations with respect
to the Finish Work to be performed at the Premises.

                  2.7 As of the date hereof, all obligations of Landlord under
the Lease have been performed, including payment of all sums owed by Landlord to
Tenant in connection with the Lease.

          3.      Ratification of Lease.   All terms and conditions of the Lease
are hereby ratified and affirmed, as modified by this Amendment.

          4.      Capitalized Terms.   All capitalized terms in this Amendment
shall have the same meanings as in the Lease unless expressly provided otherwise
herein.

                  IN WITNESS WHEREOF, Landlord and Tenant do hereby execute this
Amendment as of the day and year first above written.

                               PRENTICE POINT LIMITED PARTNERSHIP, a
                               Delaware limited partnership

                               By:  PRENTICE POINT, INC., General Partner

                                    By:
                                       ---------------------------------------
                                              Charles McIntyre, Vice President

                                                         "Landlord"

<PAGE>   25

ENERGY AUCTION EXCHANGE, INC., a Delaware
corporation

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

ATTEST:

By:
   -----------------------------------------
Print Name:
           ---------------------------------
Print Title:
            --------------------------------
                       "Tenant"

                                        2
<PAGE>   26

                               EXHIBIT E TO LEASE

                              RULES AND REGULATIONS

     The following rules and regulations have been formulated for the safety and
well-being of all tenants of the Building and to insure compliance with
governmental and other requirements. Strict adherence to these rules and
regulations is necessary to guarantee that each and every tenant will enjoy a
safe and undisturbed occupancy of its premises in the Building. Any continuing
violation of these rules and regulations by Tenant shall constitute a default by
Tenant under the Lease.

     Landlord may, upon request of any tenant, waive the compliance by such
tenant of any of the following rules and regulations, provided that (i) no
waiver shall be effective unless signed by Landlord's authorized agent, (ii) any
such waiver shall not relieve such tenant from the obligation to comply with
such rule or regulation in the future unless otherwise agreed to by Landlord,
(iii) no waiver granted to any tenant shall relieve any other tenant from the
obligation of complying with these rules and regulations, unless such other
tenant has received a similar written waiver from Landlord, and (iv) any such
waiver shall not relieve such tenant from any liability to Landlord for any loss
or damage occasioned as a result of such tenant's failure to comply.

     1. The sidewalks, entrances, passages, courts, elevators, vestibules,
stairways, corridors, roof, halls and other parts of the Building not
exclusively occupied by any tenant shall not be obstructed or encumbered by any
tenant or used for any purpose other than ingress and egress to and from each
tenant's premises. Landlord shall have the right to control and operate the
public portions of the Building, and the facilities furnished for common use of
the tenants, in such manner as Landlord deems best for the benefit of the
tenants generally. No tenant shall permit the visit to its premises of persons
in such numbers or under such conditions as to interfere with the use and
enjoyment of the entrances, corridors, elevators and other public portions or
facilities of the Building by other tenants.

     2. No awnings or other projections shall be attached to the outside walls
of the Building without the prior written consent of Landlord. No drapes,
blinds, shades or screens shall be attached to or hung in, or used in connection
with, any window or door of the Premises, without the prior written consent of
Landlord. All awnings, projections, curtains, blinds, shades, screens and other
fixtures must be of a quality, type, design and color, and attached in the
manner approved by Landlord.

     3. No showcases or other articles shall be put in front of or affixed to
any part of the exterior of the Building or any tenant's premises, nor placed in
the halls, corridors or vestibules without the prior written consent of
Landlord.

     4. The water and wash closets and other plumbing fixtures shall not be used
for any purposes other than those for which they were constructed, and no
debris, rubbish, rags or other substances shall be thrown therein. All damage
resulting from any misuse of the fixtures shall be borne by the tenant who, or
whose servants, employees, agents, visitors or licensees, shall have caused the
same.

     5. There shall be no marking, painting, drilling into or defacement of the
Building or any part of any tenant's premises that is visible from public areas
of the Building. Tenants shall not construct, maintain, use or operate within
their respective premises any electrical device, wiring or apparatus in
connection with a loud speaker system or other sound system, except as
reasonably required as part of a communication system approved prior to the
installation thereof by Landlord. No such loud speaker or sound system shall be
constructed, maintained, used or operated outside the premises of any tenant.

     6. No bicycles or vehicles and no animals, birds or pets of any kind shall
be brought into or kept in or about the Building or any tenant's premises,
except that this rule shall not prohibit the parking of bicycles or vehicles in
areas specifically designated therefor by Landlord. No cooking or heating of
food shall be done or permitted by any tenant on its premises except for food
prepared in portable microwave ovens (provided that no odors are emitted such as
in the preparation of popcorn). No tenant shall cause or permit any unusual or
objectionable odors to be produced upon or permeate from its premises.

     7. No space in the Building shall be used for the manufacture of goods for
sale in the ordinary course of business, or for the sale at auction of
merchandise, goods or property of any kind. Furthermore, the use of its premises
by any tenant shall not be changed without the prior approval of Landlord.

     8. No tenant shall make any unseemly or disturbing noises or disturb or
interfere with the occupants of the Building or neighboring buildings or
premises or those having business with them, whether by the use of any musical
instrument, radio, talking machine, whistling, singing, or in any other way. No
tenant shall throw anything out of the doors or windows or into or down the
corridors or stairs of the Building.

     9. No flammable, combustible or explosive fluid, chemical or substance
shall be brought into or kept upon the Premises.

<PAGE>   27
     10. No additional locks or bolts of any kind shall be placed upon any of
the doors or windows by any tenant, nor shall any changes be made in any
existing locks or the locking mechanism therein, without Landlord's approval.
The doors leading to the corridors or main halls shall be kept closed during
business hours except as they may be used for ingress or egress. Each tenant
shall, upon the termination of its tenancy, restore to Landlord all keys of
stores, offices, storage and toilet rooms either furnished to, or otherwise
procured by, such tenant, and in the event of the loss of any keys so furnished,
such tenant shall pay to Landlord the replacement cost thereof. Tenant's key
system shall be separate from that for the rest of the Building.

     11. Landlord reserves the right to inspect all freight to be brought into
the Building and to exclude from the Building all freight which violates any of
these rules and regulations of the Lease.

     12. Landlord reserves the right to exclude from the Building at all times
any person who is not known or does not properly identify himself or herself to
the Building management or watchman, if any, on duty. Landlord may, at its
option, require all persons admitted to or leaving the Building between the
hours of 6:00 p.m. and 7:00 a.m., Monday through Friday, and at any hour on
Saturdays, Sundays and legal holidays, to register. Each tenant shall be
responsible for all persons for whom it authorizes entry in the Building, and
shall be liable to Landlord for all acts or omissions of such persons.

     13. The Premises shall not, at any time, be used for lodging or sleeping or
for any immoral or illegal purposes.

     14. Tenant assumes full responsibility for protecting the Premises from
theft, and each tenant, before closing and leaving the Premises at any time,
shall see that all doors and windows are closed and locked, and all lights
turned off.

     15. Landlord's employees shall not perform any work or do anything outside
of their regular duties, unless under special instruction from the management of
the Building. The requirements of tenants will be attended to only upon
application to Landlord, and any such special requirements shall be billed to
Tenant (and paid when the next installment of rent is due) in accordance with
the schedule of charges maintained by Landlord from time to time or at such
charge as is agreed upon in advance by Landlord and Tenant.

     16. Canvassing, soliciting and peddling in the Building and on the Property
are prohibited and each tenant shall cooperate to prevent the same. Peddlers,
solicitors and beggars shall be reported to the Building manager or as Landlord
otherwise requests.

     17. There shall not be used in any space, or in the public halls of the
Building, either by any tenant or by jobbers or others in the delivery or
receipt of merchandise, any hand trucks, except those equipped with rubber tires
and side guards. Tenant shall be responsible to Landlord for any loss or damage
resulting from any deliveries made by or for Tenant to the Building.

     18. Mats, trash or other objects shall not be placed in the public
corridors of the Building.

     19. Landlord does not maintain suite finishes which are non-standard, such
as kitchens, bathrooms, wallpaper, special lights, etc. However, should the need
arise for repairs of items not maintained by Landlord, Landlord will arrange for
the work to be done at Tenant's expense.

     20. Drapes installed by Landlord for the use of Tenant or drapes installed
by Tenant, with Landlord's approval, which are visible from the exterior of the
Building, must be cleaned by Tenant at least once a year, without notice, at the
tenant's own expense.

     21. The Building directory located in the Building lobby as provided by
Landlord shall be available to Tenant solely to display its name and location in
the Building, which display shall be as directed by Landlord.

     22. Tenant shall not cause any unnecessary janitorial labor or services by
reason of Tenant's carelessness or indifference in the preservation of good
order and cleanliness.

     23. Tenant shall not install linoleum, tile, carpet or other floor covering
so that the same shall be affixed to the floor of the Premises in any manner
except as approved by Landlord.

     24. No furniture, packages, supplies, equipment or merchandise will be
received in the Building or carried up or down in the elevators, except between
such hours and in such elevators and under such other conditions as shall be
designated by Landlord.

     25. Tenant shall not waste heat or air-conditioning and shall cooperate
fully with Landlord to assure the most effective operation of the Building's
heating and air-conditioning, and shall refrain from attempting to adjust any
controls other than room thermostats installed for Tenant's use.

                                       2
<PAGE>   28
     26. Landlord shall have sole power and discretion to control the quantity,
size, location, and design of all tenant identification signage. No such signage
shall be erected without Landlord's written consent.

     27. The loading dock area is exclusively reserved for authorized traffic
and Tenant shall not use same for temporary parking.

     28. No eating, drinking, sleeping, or loitering shall be permitted in the
lobby areas.

     29. Landlord may from time to time alter or amend these Rules and
Regulations, and Tenant shall comply with the Amended Rules and Regulations.

                                        3

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