Document:

Exhibit 10.1

       Asset Purchase Agreement (Chattanooga Regional Interconnect, Inc.)
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                            ASSET PURCHASE AGREEMENT

         THIS ASSET PURCHASE AGREEMENT (this "Agreement") made and entered into
as of May 29, 1998, by and among AVALON BORDEN COMPANIES, INC., a Delaware
corporation (hereinafter referred to as the "Purchaser") and CHATTANOOGA
REGIONAL INTERCONNECT, INC., a Tennessee corporation (hereinafter referred to as
the "Seller").

                                   WITNESSETH

         WHEREAS, Seller desires to sell to Purchaser, and Purchaser desires to
purchase and acquire substantially all of the assets of Seller's cable
ad-insertion turn-key business located in Chattanooga, Tennessee (the "Seller's
Business") as more fully set forth below, including the use of the name
Chattanooga Regional Interconnect, all upon the terms and subject to the
condition hereinafter set forth;

         NOW, THEREFORE, in consideration of the mutual promises and covenants
herein contained, the contemplated payment by Purchaser to Seller of the
Purchase Price (as hereinafter defined), and other good and valuable
consideration, the receipt and sufficiency of all which are hereby acknowledged,
the parties hereby agree as follows:

                                   ARTICLE 1.

                    TERMS OF THE SALES AND PURCHASE OF ASSETS

         Section 1.1 PURCHASE OF ASSETS AND ASSUMED LIABILITIES; ACCOUNTS
RECEIVABLE.

         (a) PURCHASE AND SALE OF ASSETS. Subject to the terms and conditions
set forth in Section 1.5, Seller hereby agrees to sell to Purchaser, and
Purchaser hereby agrees to purchase from Seller, on or before May 29, 1998 (the
"Closing Date"), unless extended by mutual consent of the parties, with such
sell to be effective as of June 2, 1998 (the "Effective Date"), the assets of
Seller (except as otherwise provided herein)(collectively, the "Assets"),
including without limitation the following items:

               (i) Seller's tangible personal property and other assets used in
         connection with the Seller's Business (except as otherwise provided
         herein)(such as machinery, equipment, inventories, parts and supplies,
         furniture and furnishings) including those properties and assets set
         forth on SCHEDULE 1.1(a)(i) attached hereto;

               (ii) all contracts and agreements identified on SCHEDULE
         1.1(a)(ii) attached hereto (excluding this Agreement and the
         agreements, documents and instruments executed and delivered by Seller
         pursuant to this Agreement), expressly including any and all cash or
         other deposits required under the contracts and agreements, including
         the deposit required under the Helicon contract;

               (iii) all Accounts Receivable, as defined herein, of Seller as of
         the Closing Date, including any pre-billed yet unaired Advertising time
         relating in any way to Seller's Business;

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               (iv) Seller's intangible property used in connection with
         Seller's Business, including Seller's trade name "Chattanooga Regional
         Interconnect" and any trademarks, copyrights or other rights related to
         such trade name;

               (v) subject to applicable Laws, the transferable Licenses and
         Approvals necessary for or incident to the operation of the Assets; and

               (vi) the books and records of Seller relating to the Assets,
         including any and all Accounts Receivable, aging and collection history
         reports, all of which shall be delivered to Purchaser's designee at the
         Closing.

         (b) EXCLUDED ASSETS. There shall be excluded from the Assets to be
transferred and conveyed hereunder, and Seller shall retain all of its right,
title and interest in the corporate charters and other constituent documents of
Seller, qualifications to conduct business as a corporation, taxpayer and other
identification numbers, seals, minute books, stock transfer or partnership
transfer books and other documents relating to the organization, maintenance and
existence of Seller as a corporation, partnership or other entity, all
considerations delivered to Seller by Purchaser on the Closing Date.

         Section 1.2 PURCHASE PRICE. In exchange for the sale of the Assets,
Purchaser will assume the Assumed Liabilities and provide the following
additional consideration:

         (a) CASH CONSIDERATION. At the Closing, Purchaser will pay Seller the
total sum of Six Hundred Thousand Dollars ($600,000.00) less any and all
payments received by Seller as of the Closing Date for goods or services not
shipped or performed as of the Closing Date, and as listed and described on
Schedule 1.2(a)(i) attached hereto (the "Prepaid Receivables")(the "Purchase
Price") in the form of Three Hundred Thousand Dollars ($300,000.00) less the
Prepaid Receivables, in Cash or certified funds, and a Promissory Note with a
principal amount of Three Hundred Thousand Dollars ($300,000.00), the form of
which is attached hereto as SCHEDULE 1.2(a)(ii).

         (b) ASSUMED LIABILITIES. Subject to Section 1.3 and 1.8 of this
Agreement, at the Closing Purchaser shall assume, and agrees to discharge,
Seller's obligations with respect to, all of the contracts, agreements, leases,
commitments, liabilities and obligations which are specifically set forth on
SCHEDULE 1.2(b) attached, hereto, except to the extent such items are excluded
by virtue of the operation of other provisions of this Agreement (the "Assumed
Liabilities"). Notwithstanding the foregoing, Purchaser shall not be deemed to
assume any liability which may be incurred prior to the Closing Date by reason
of any breach of or default under any of the Assumed Liabilities or act or
omission which could, with the passage of time, create a breach or default under
any such Assumed Liabilities.

         (c) ALLOCATION OF PURCHASE PRICE. The Purchase Price shall be allocated
among the Assets as set forth on SCHEDULE 1.2(c) attached hereto.

         Section 1.3 LIABILITIES NOT ASSUMED BY THE PURCHASER. Except for the
Assumed Liabilities. Purchaser shall not be deemed to assume any liability of
Seller whatsoever. Without limiting the generality of the foregoing. Purchaser
shall not be deemed to have assumed, nor shall Purchaser assume, except to the
extent expressly included in the Assumed Liabilities, any liability for or the
payment of

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(i) any liability based upon or arising out of any tortuous or wrongful actions
of Seller; (ii) any taxes of Seller arising out of any and all transactions
occurring on or prior to the Closing Date; (iii) any taxed of Seller arising in
connection with the transactions contemplated by this Agreement; (iv) any taxes
relating in any way to the Assets arising, accruing or due prior to or after the
Closing Date that arise from or relate in any way to Seller's ownership of the
Assets; (v) except with respect to employees listed on SCHEDULE 1.4(a) attached
hereto, any salary, wage, benefit, bonus, vacation pay, sick leave, insurance,
employment tax or similar liability of Seller to any employee, officer, director
or other person or entity attributable to services performed on or prior to the
execution and delivery of this Agreement; (vi) any obligation of Seller to the
Shareholders; (vii) any liabilities arising in connection with Seller's business
which is not included in the Assumed Liabilities; (viii) for any contributions
or otherwise, for any of the Employee Plans (as defined in Section 2.11) for the
benefit of Seller's employees, officers or directors except as set forth on
Schedule 1.4 (a); and (ix) any obligation or liability arising in any way under
Seller's national Cable Corporation contract.

         Section 1.4 EMPLOYEES.

         (a) EMPLOYMENT. As of the Closing Date, Purchaser shall offer
employment, as employees-at-will, to those employees of Seller who are
identified on SCHEDULE 1.4(a) attached hereto together with their current
salary or wages.

         (b) TERMINATION/TRANSFER. As of the Effective Date, Seller will (i)
terminate any applicable employment contract of individuals who are to be
employed by Purchaser pursuant to Section 1.4(a); (ii) terminate the
participation of all such employees in all of the Employee Plans (as defined in
Section 2.11) and/or transfer the assets contained in any Employee Plans to any
employee plan required to be continued or established by Purchaser for the
benefit of any employees hired by Purchaser, and obtain any and all necessary
consents for such transfer, in accordance with all Laws, including, without
limitation, the provisions of the Internal Revenue code of 1986, as amended
("Code"), and the Employee Retirement Income Security Act of 1974, as amended
("ERISA"); (iii) cause the Employee Plans to make timely, appropriate
distributions and/or transfers, to the extent required, to such employees or new
employee plans in accordance with such Employee Plans and/or any and all Laws,
including, without limitation, the Code and ERISA; and (iv) provide Purchaser
with copies of documents and other information related to the foregoing matters
as Purchaser may request.

         Section 1.5 ACTIONS TO BE TAKEN AT CLOSING.

         (a) PURCHASER. Subject to the terms and conditions set forth in this
Agreement, contemporaneously with the execution and delivery hereof, Purchaser
has delivered the Purchase Price.

         (b) SELLER. Subject to the terms and conditions set forth in this
Agreement, it is agreed that at the Closing, Seller has delivered or caused to
be delivered to Purchaser;

               (i) All such bills of sale and other documents or instruments of
         conveyance, transfer or assignment (including a statutory warranty deed
         in the event of a sale of any real estate) as shall be necessary or
         appropriate to vest in or confirm to Purchaser all of Seller's right,
         title and

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         interest in and to the Assets, free and clear of all liens, charges and
         encumbrances, except for the Assumed Liabilities;

               (ii) all original invoices and receipts for all Assets;

               (iii) certified resolutions duly adopted by Seller and written
         consent of the Shareholders, authorized and adopting this Agreement and
         the sale, transfer and transactions provided for herein;

               (iv) certificates, consents, estoppel letters, right of first
         refusal waivers (as listed and described on SCHEDULE 1.7 and other
         documents reasonably required by Purchaser executed and delivered by
         all persons and entities necessary to authorize or complete the
         transactions contemplated by herein;

               (v) certified copy of Seller's constituent documents and
         certificates of good standing of Seller in the State;

               (vi) copies of all licenses, license applications and
         communications with all applicable licensing or regulatory bodies;

               (vii) certified copies of any certificate of need, license,
         variance, certificate, registration or other governmental approval,
         process, determination or notification necessary or appropriate for the
         transfer to Purchaser and the operation of the Assets subsequent to the
         Effective Date (collectively, the "Licenses and Approvals");

               (viii) the designation and appointment of Purchaser, its
         successors and assigns, by Seller as the true and lawful
         attorneys-in-fact for Seller, with full power of substitution, in the
         name of the Seller in the form attached hereto as SCHEDULE
         1.5(b)(viii), to institute and prosecute, in the name of the Seller or
         otherwise, all proceedings which Purchaser may deem proper in order to
         collect, assert or enforce any claim, right or title of any kind in or
         to the Assets to be transferred to Purchaser pursuant to the Agreement,
         to defend and compromise any and all actions, suits or proceedings in
         respect of any such Assets, to endorse all checks and all other
         negotiable instruments in the name of Seller, and to do all such acts
         and things in relation thereto as Purchaser shall reasonably deem
         advisable. Seller agrees that the foregoing powers will be coupled with
         interest and shall be irrevocable by Seller or by its dissolution or in
         any other manner or for any reason. Seller shall pay to Purchaser, when
         received, any amounts which shall be received by such Seller in respect
         of any of the Assets transferred to Purchaser;

               (ix) a list of all clients, customers, vendors, suppliers, etc.,
         including all MSO contacts, which list should include the addresses,
         contact names, phone numbers and description of such
         client/customer/etc. relationships, with such list attached hereto as
         SCHEDULE 1.5(b)(x); and

               (x) the termination or recission of the National Cable
         Corporation Contract with evidence of such termination or recission
         attached hereto on SCHEDULE 1.5(b)(x).

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         Section 1.6 COSTS AND EXPENSES OF PURCHASE AND SALE OF ASSETS. Each of
the parties to this Agreement shall pay all of its own costs and expenses
incurred by it in connection with the transactions contemplated by this
Agreement; provided that the parties agree to prorate all real and personal
property taxes as of the Effective Date. Without limiting the generality of the
foregoing, whether or not they may be deemed to have been incurred in the
Ordinary Course of Business, Purchaser shall not be liable for or required to
pay, either directly or indirectly, any of the following liabilities or expenses
incurred by Seller: (a) fees and expenses of any person for financial services
or services as a finder rendered to Seller in connection with the sale
contemplated by this Agreement; (b) fees and expenses of legal counsel retained
by Seller for services rendered to Seller in connection with the sale
contemplated by this Agreement; (c) fees and expenses of auditors, accountants
or brokers retained by Seller for services rendered to Seller in connection with
the sale contemplated by this Agreement; or (d) taxes or other similar charges
incurred by Seller in connection with the making of this Agreement of the
transfer of the Assets to Seller.

         Section 1.7 SELLER TO FURNISH ASSIGNMENTS AND CONSENTS. Nothing
contained in Agreement shall be construed as an attempt to agree to assign any
contracts or Licenses and Approvals which by law are non-assignable without the
consent of the other party or parties thereto of the appropriate governmental
body or authority, unless such consent shall be given. Seller hereby covenants
that Seller will, at Seller's expense, take all reasonable actions as shall, in
the opinion of Purchaser, be necessary or appropriate for (i) the rights and
obligations of Seller under such contracts, certificates and Licenses and
Approvals to be preserved; (ii) written waivers of any and all Rights of First
Refusals, options, or other Rights held by any third party under any of the
contracts or agreements, and the written consents to the sale of any such Assets
as are covered by any such rights or options, with all such written waivers and
consents listed and attached hereto as SCHEDULE 1.7, (iii) Seller shall hold any
moneys it receives that is due and payable Purchaser under this Agreement for
the benefit of, and shall promptly pay the same over to, Purchaser; and
Additionally, Seller shall cooperate with and assist Purchaser, as Purchaser
shall reasonably request, in obtaining the approval of all regulatory agencies
and officials whose approval is required for the transfer of any of the Licenses
and Approvals necessary or appropriate to enable Purchaser to purchase and
operate the Assets.

                                   ARTICLE 2.

                    REPRESENTATIONS AND WARRANTIES OF SELLER.

         Seller hereby represents and warrants to Purchaser as follows:

         Section 2.1 ORGANIZATION AND GOOD STANDING. Seller is a corporation
duly organized, validly existing and in good standing under the laws of the
State. Seller has all necessary power to own all of its properties and assets
and to carry on its business as now being conducted. Seller is not required to
qualify to do business as a foreign corporation in any other state of
jurisdiction.

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         Section 2.2 SELLER'S AUTHORITY; NO BREACH. Seller has the requisite
power and authority to execute, deliver and perform this Agreement and all
agreements executed and delivered by it pursuant to this Agreement, and has
taken all action required by law, its constituents documents or otherwise, to
authorize the execution, delivery and performance of this Agreement and such
related documents. The execution and delivery of this Agreement does not, and
the consummation of the sale contemplated hereby will not, violate any
provisions of the constituent documents of Seller, or any provisions of, or
result in the acceleration of, any obligation under any mortgage, lien, lease,
agreement or instrument, to which Seller is a party, or by which it is bound.
This Agreement has been duly executed and delivered by Seller and constitutes
the legal, valid and binding obligation of Seller.

         Section 2.3 BALANCE SHEET. The unaudited balance sheet of Seller for
the period ending April 30, 1998 (the "Balance Sheet Date") is attached hereto
as SCHEDULE 2.3.

         Section 2.4 FINANCIAL STATEMENTS. Seller has heretofore furnished
Purchaser with copies of financial information about Seller as set forth on
SCHEDULE 2.4 attached hereto, including without limitation the balance sheet
referenced in Section 2.3. To the best of Seller's knowledge, such financial
statements have been prepared in accordance with generally accepted accounting
principles consistently followed throughout the periods indicated, reflect all
material liabilities of Seller, including all material consolidated contingent
liabilities of Seller and present fairly the financial position of Seller as of
the dates indicated and the consolidated results of operations and cash flows
for the periods reflected therein.

         Section 2.5 ASSUMED LIABILITIES. (i) SCHEDULE 1.2(b) to this Agreement
sets forth a list of all the Assumed Liabilities; (ii) except as may be set
forth on SCHEDULE 1.2(b), all of the contracts, leases and agreements listed in
SCHEDULE 1.2(b) are valid and effective in accordance with their respective
terms. Other than the Assumed Liabilities, Seller is not a party to any material
written or oral agreement, contract, lease or plan that would have a material
effect on the Assets, including any:

         (a) contract related to the Assets not made in the Ordinary Course of
Business, other that this Agreement;

         (b) employment contract that is not terminable without cause or
material cost or other liability to Seller or its successors and assigns upon
notice of 30 days or less;

         (c) bonus, pension, profit sharing, retirement, stock purchase,
hospitalization, insurance or similar plan providing for employee benefits,
other than as set forth on SCHEDULE 2.11 attached hereto;

         (d) other than the lease for office space located at 5959 Shallowford
Road, Suite 309, Chattanooga, Tennessee, any lease with respect to any property,
real or personal, whether as lessor or lessee; or

         (e) contract for future purchase of materials, supplies or equipment
which is not disclosed on SCHEDULE 2.5 and (A) in excess of the requirements of
Seller's Business now booked or for normal operating inventories, or (B) not
terminable without material cost or liability to Seller, its successors or
assigns, upon notice of 30 days or less.

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         Section 2.6 SHAREHOLDERS, AFFILIATES AND SECURITIES. Seller does not
stock in or control, directly or indirectly, any other corporation, association
or business organization, nor is Seller a party to any joint venture or
partnership. Mr. Douglas H. Fisher and Mr. Herbert A. Adcox are the sole
shareholders of Seller ("Shareholders"). There are no outstanding (i) securities
of Seller convertible into equity interests in Seller, or (ii) commitments,
options, rights or warrants to issue any such equity interests in Seller, or to
issue securities of Seller convertible into such equity interests.

         Section 2.7 LOCATION OF SELLER'S BUSINESS; ASSETS. The principal place
of business of Seller is 5959 Shallowford Road, Suite 309, Chattanooga,
Tennessee, 37421. All of the Assets are located in various locations as listed
and described on SCHEDULE 2.7 attached.

         Section 2.8 TITLE TO ASSETS. Seller holds good and defensible title to
all of the Assets, including any leasehold interests, free and clear of any
liens, claims, charges, exceptions or encumbrances, except for those expressly
disclosed as Assumed Liabilities and as set forth on SCHEDULE 2.8 and SCHEDULE
1.2 (b) attached hereto. All inventories, supplies, equipment, furniture and
other tangible assets listed on SCHEDULE 1.1(a)(i) to this Agreement currently
are used by or are useful in the Ordinary Course of Business by Seller and, to
the best of Seller's knowledge, are in good operating conditioning and in a
state of reasonable maintenance and repair.

         Section 2.9 LITIGATION OR CLAIMS. Neither Seller nor the Shareholders
of Seller has any knowledge of any pending litigation, governmental
investigation, third party payor audit or recoupment proceeding or other
proceeding against or relating to Seller, the Seller's Business, the Assets, any
Shareholders of Seller, or the transaction contemplated by this Agreement and,
so far as is known to either Seller or any of its shareholders, no basis for any
such action exists.

         Section 2.10 EMPLOYEES AND LABOR CONTRACTS. To the best of Seller's
knowledge, no executive, key employee or group of employees has any plans to
terminate employment with Seller. Seller is not a party to or bound by any
collective bargaining agreement, nor has it experienced any strikes, grievances,
claims of unfair labor practices or other collective bargaining disputes. To the
best of Seller's knowledge, Seller has not committed any unfair labor practice.
Seller has no knowledge of any organizational effort presently being made or
threatened by or on behalf of any labor union with respect to employees of
Seller. SCHEDULE 1.4(a) attached hereto sets forth the names of all present
employees of Seller, their position, starting date and current salary as of the
date hereof. Seller has not received notice of any claim in the nature of
worker's compensation or employment discrimination in the last two years.

         Section 2.11 EMPLOYEE BENEFIT PLANS. Except as set forth on SCHEDULE
2.11 attached hereto (the "Employee Plans"), Seller has neither established, nor
maintains, nor is obligated to make contributions to or under or otherwise
participate in (i) any bonus or other type of incentive compensation plan,
program, agreement, policy, commitment, contract or arrangement (whether written
or oral); (ii) any pension, profit-sharing, retirement or other plan, program or
arrangement; or (iii) any other employee benefit plan fund or program,
including, but not limited to, the items referenced in Section 3(3) of ERISA.
All of the Employee Plans have been operated and administered in all material
respects in accordance with all applicable Laws, including, but not limited to,
ERISA, the Internal Revenue Code of 1986, as amended, the Age Discrimination in
Employment Act of 1967, as amended,

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Title VII of the Civil Rights Act of 1964, as amended, the Equal Pay Act of
1967, as amended, and the related rules and regulations adopted by those federal
agencies responsible for the administration of such laws. No act or failure to
act by Seller has resulted in a "prohibited transaction" (as defined by ERISA)
and no "reportable event" (as defined by ERISA) has occurred with respect to any
of the Employee Plans. Seller has not previously made, is not currently making,
and is not obligated in any way to make, any contributions to any multi-employer
plan within the meaning of the Multi-Employer Pension Plan Amendments Act of
1980.

         Section 2.12 SUBSEQUENT EVENTS TO BALANCE SHEET DATE. Since the Balance
Sheet Date, Seller has not (i) incurred any material obligations or liability
(absolute, accrued, contingent or otherwise) related to Seller's Business,
except for the Assumed Liabilities; (ii) experienced any material adverse change
in the Seller's Business, including the type or number of Seller's patients; or
(iii) sold or transferred any of the Assets used in connection with Seller's
Business, or canceled any debts or claims or waived any rights related to
Seller's Business, except in the Ordinary Course of Business or in conjunction
with this Agreement.

         Section 2.13 TAXES. Seller has been notified that any income tax
returns of Seller are currently under audit by the Internal Revenue Service or
any state or local tax agency, and any such prior audits have been finally and
fully concluded and all taxes owed pursuant thereto have been paid in full. No
agreements have been made by Seller for the extension of time or the waiver of
the statute of limitation for the assessment of any tax. Seller is not a foreign
partnership, corporation, entity or individual pursuant to the Internal Revenue
code and Purchaser is not required to withhold any part of the Purchase Price,
or otherwise comply with Section 1445 of the Internal Revenue Code of 1986, as
amended. Seller's federal tax identification number is 62-1462974. Seller has
filed all reports and returns and paid all taxes owed by Seller.

         Section 2.14 LICENSES AND APPROVALS. Seller has obtained all Licenses
and Approvals necessary to operate Seller's Business, each of which is currently
in full force and effect, and the consummation of the transactions herein
contemplated will not conflict with or result in termination of such Licenses
and Approvals, each of which is set forth on SCHEDULE 2.14 attached hereto.
Except as set forth on SCHEDULE 2.14, all Licenses and Approvals can and shall
be transferred or assigned to Purchaser or will otherwise be obtained prior to
the Closing. Purchaser will take all actions reasonably necessary to ensure the
transfer of all Licenses and Approvals and such transfer shall not result in an
interruption of Seller's Business upon the consummation of the transactions
herein contemplated.

         Section 2.15 INSURANCE. Seller has policies of insurance in effect for
general liability and for its facilities, equipment and inventory, with coverage
in amounts deemed by the management of Seller to be sufficient.

         Section 2.16 COMMISSIONS. Seller has no obligation for any brokerage
commissions or finder's fees with respect to the transaction s contemplated by
this Agreement resulting from or arising out of any action taken by Seller,
Shareholders or its employees or agents.

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         Section 2.17  COMPLIANCE WITH LAWS. To the best of Seller's knowledge,
Seller has complied with the applicable provisions of all Laws and no notice of
any pending inspection or violation of any Laws has been received by Seller.

         Section 2.18  ACCOUNTS RECEIVABLE. To the best of Seller's knowledge,
all Accounts Receivable are valid debts incurred by the obligors thereunder in
the Ordinary Course of Business of Seller, are not subject to counterclaims or
setoffs, and Seller has taken all acts reasonably necessary to ensure their
ultimate collection, including timely compliance with all regulatory
requirements of any State or Federal Agency, including the Federal
Communications Commission. Seller knows of no hindrance that would prevent
Purchaser from collecting such Accounts Receivable in the Ordinary Course of
Business.

                                   ARTICLE 3.

                   REPRESENTATIONS AND WARRANTIES OF PURCHASER

         Purchaser represents and warrants to Seller as follows:

         Section 3.1   ORGANIZATION. Purchaser is a corporation duly organized,
validly existing and in good standing under the laws of the State of Delaware
and is qualified to do business in all other jurisdictions where it is required
to be so qualified. Purchaser has all necessary power to own all of its
properties and assets and to carry on the business as now being conducted or as
contemplated in the future under this Agreement. Purchaser has all necessary
power and is duly authorized to purchase Seller's Business.

         Section 3.2   AUTHORIZATION. Purchaser has full power and authority,
including the corporate authority, to execute, deliver and perform this
Agreement and all agreements executed and delivered by it pursuant to this
Agreement and has taken all action required by law, its articles or certificate
of incorporation, its bylaws or otherwise, to authorize the execution, delivery
and the performance of this Agreement and related documents. The execution and
delivery of this Agreement or other transactions incidental to this Agreement
does not and, subject to the receipt of consents to assignment of leases and
other contracts where required, the consummation of the purchase contemplated
hereby will not, violate any provision of the certificate of incorporation or
bylaws of Purchaser, or any state or federal securities laws, or any provisions
of or result in the acceleration of any obligation under any mortgage, lien,
lease, agreement, instrument, order, arbitration, award, judgment or decree to
which Purchaser is a party or by which it is bound. This Agreement has been duly
executed and delivered by Purchaser and constitutes the legal, valid and binding
obligation of Purchaser, enforceable in accordance with its terms and
conditions.

         Section 3.3   LITIGATION OR CLAIMS. Purchaser has no knowledge of any
pending litigation, governmental investigation, third party payor audit or
recoupment proceeding or other proceeding against or relating to Purchaser, its
subsidiaries or affiliates, any of its shareholders, or the transaction
contemplated by this Agreement and, so far as is known to Purchaser, no basis
for any such action exists.
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         Section 3.4   TAXES. Purchaser has not been notified that any income,
franchise or shares tax returns of Purchaser are currently under audit by the
Internal Revenue Service or any state or local tax agency, and any such prior
audits have been finally and fully concluded and all taxes owed or claimed to be
owed pursuant thereto have been paid in full. No agreements have been made by
Purchaser for the extension of time or the waiver of the statute of limitation
for the assessment of any tax. Purchaser is not a foreign partnership,
corporation, entity or individual pursuant to the Internal Revenue Code and
Purchaser is not required to withhold any part of the Purchase Price, or
otherwise comply with Section 1445 of the Internal Revenue Code of 1986, as
amended. Purchaser's federal tax identification number is 63-0967802. Purchaser
has filed all reports and returns and paid all taxes owed by Purchaser.

         Section 3.5   COMPLIANCE WITH LAWS. To the best knowledge of Purchaser,
it's officers or directors, Purchaser has complied with the applicable
provisions of all Laws and no notice of any pending inspection or violation of
any Laws has been received by Purchaser or its officers or directors.

         Section 3.6   DISCLOSURE. The representations and warranties contained
in this Article 3 do not contain any untrue statement of a material fact or omit
to state any material fact necessary in order to make the statements and
information contained in this Article 3 not misleading.

                                   ARTICLE 4.

                     NATURE AND SURVIVAL OF REPRESENTATIONS
                   AND WARRANTIES; INDEMNITIES; NONCOMPETITION

         Section 4.1   NATURE OF STATEMENTS. All statements contained in this
Agreement or in any schedule attached hereto, any agreement executed pursuant
hereto, and any certificate or other instrument delivered by or on behalf of
either party pursuant to the terms of this Agreement, shall constitute
representations and warranties. All representations, warranties and covenants of
the parties shall survive the Closing Date for a period of three years following
the Closing Date, and the parties shall be entitled to rely upon such
representations, warranties and covenants irrespective of any investigations
made by such parties.

         Section 4.2   PURCHASER'S INDEMNITY. Purchaser agrees to defend,
indemnify and hold harmless Seller from and against any and all Adverse
Consequences arising out of or in connection with (A) any misrepresentation or
breach of warranty or covenant contained in this Agreement by Purchaser and each
document, certificate or other instrument furnished or to be furnished by
Purchaser hereunder and (B) the transaction of Seller's Business arising after
the Effective Date.

         Section 4.3   SELLER'S INDEMNITY. Seller and its Shareholders, jointly
and severally, agree to defend, indemnify and hold harmless Purchaser from and
against any and all Adverse Consequences arising out of or in connection with
(A) any misrepresentation or breach of warranty or covenant contained in this
Agreement (including the attached Schedules) by Seller and each document,
certificate or other instrument furnished or to be furnished by Seller hereunder
and (B) except for the Assumed Liabilities, the transaction of Seller's Business
prior to the Effective Date.

                                       10

<PAGE>

         Section 4.4   INDEMNIFICATION PROCEDURE. Within 60 days after any third
party notifies any Party (the "Indemnified Party") of the commencement of any
proceeding ("Proceeding") which may give rise to a claim for indemnification
hereunder against any other Party (the "Indemnifying Party"), the Indemnified
Party shall, if a claim in respect thereof is to be made against the
Indemnifying Party under this Agreement, give notice to the Indemnifying Party
of the commencement thereof, but the failure so to notify the Indemnifying Party
shall not relieve it of any liability that it may have to the Indemnified Party
except to the extent that the Indemnifying Party demonstrates that the defense
of such action is prejudiced thereby. In case any such Proceeding shall be
brought against the Indemnified Party and it shall give notice to the
Indemnifying Party of the commencement thereof, the Indemnifying Party shall,
unless the claim involves payment of state or federal taxes, be entitled to
participate therein and, to the extent that it shall wish (unless (i) the
Indemnifying Party is also a party to such Proceeding and the Indemnified Party
determines in good faith that the joint representations would be inappropriate
or (ii) the Indemnifying Party fails to provide reasonable assurance to the
Indemnified Party of its financial capacity to defend such Proceeding and
provide indemnification with respect thereto), to assume the defense thereof
with counsel satisfactory to the Indemnified Party and, after notice from the
Indemnifying Party to the Indemnified Party of the Indemnifying Party's election
so to assume the defense thereof, the Indemnifying Party shall not be liable to
the Indemnified Party under this Agreement for any fees of other counsel or any
other expenses with respect to the defense of such Proceeding, in each case
subsequently incurred by the Indemnified Party in connection with the defense
thereof. If the Indemnifying Party assumes the defense of such a Proceeding, (a)
no compromise or settlement thereof may be affected by the Indemnifying Party
without the Indemnified Party's consent unless (i) there is no finding or
admission of any violation of any laws or any violation of the rights of any
person and no affect on any other claims that may be made against the
Indemnified Party and (ii) the sole relief provided is monetary damages that are
paid in full by the Indemnifying Party and (b) the Indemnifying Party shall have
no liability with respect to any compromise or settlement thereof effected
without its consent. If notice is given to the Indemnifying Party of the
commencement of any Proceeding and the Indemnifying Party does not, within ten
days after the Indemnified Party's notice is given, give notice to the
Indemnified Party of its election to assume the defense thereof, the
Indemnifying Party shall be bound by any determination made in such action or
any compromise or settlement thereof effected by the Indemnified Party.
Notwithstanding the foregoing, if the Indemnified Party determines in good faith
that there is a reasonable probability that a Proceeding may adversely affect it
or its affiliates other than as a result of monetary damages, the Indemnified
Party may, by notice to the Indemnifying Party, assume the exclusive right to
defend, compromise or settle such Proceeding, but the Indemnifying Party shall
not be bound by any determination of such a Proceeding so defended or any
compromise or settlement thereof effected without its consent, which consent
shall not be unreasonably withheld. In connection with the Indemnifying Party's
obligation to indemnify for expenses, the Indemnifying Party shall reimburse
each Indemnified Party for such expenses as they are incurred by such
Indemnified Party; provided that such Indemnified Party agrees in writing to
refund all such reimbursed expenses if and to the extent that it is finally
judicially determined that such Indemnified Party is not entitled to
indemnification hereunder.

         Section 4.5   NON-COMPETITION. Seller and Seller's Shareholders
individually and severally agree that for a period of three (3) years from the
Closing Date of this Agreement, neither Seller or Seller's Shareholders,
corporately, individually or as a consultant, employee, partner, officer or
agent

                                       11

<PAGE>

of any person, firm, partnership, corporation, governmental unit, company or
other entity, anywhere within the states of Alabama, Arkansas, Florida, Georgia,
Kentucky, Mississippi, North Carolina, South Carolina, Tennessee, and Texas
engage in any business that competes, directly or indirectly with any of
Purchaser's current businesses, expressly including but not limited to the
business of owning and acquiring cable companies, manufacturing, distributing,
selling or leasing advertising insertion equipment, and owning or operating
turnkey cable advertising businesses. Each Shareholder agrees that this
geographical limitation is fair and reasonable and is necessary to protect the
Corporation's business.

                                   ARTICLE 5.

                                  MISCELLANEOUS

         Section 5.1   NOTICE. All notices, demands, requests and other
communications or documents to be provided under this Agreement shall be in
writing and shall be given to the applicable party at its address or telecopy
number set forth below or such other address or telecopy number as the party may
later specify for that purpose by notice to the other party:

                  If to Purchaser:

                  BORDEN COMPANIES, INC.
                  404 Avalon Avenue
                  Suite 400
                  Muscle Shoals, Alabama  35661
                  Attention:  Mr. Das A. Borden
                  Telephone:  (205) 381-7840
                  Telecopy:   (205) 381-4832

                  With copies to:

                  William M. Keever, Esq.
                  Dempsey, Steed, Stewart & Keever, P.C.
                  100 RiverPoint Corporate Center, Suite 205
                  Birmingham, Alabama  35243
                  Telephone:  (205) 970-0034
                  Telecopy:   (205) 970-0119

                  If to Seller and the Shareholders:

                  CHATTANOOGA REGIONAL INTERCONNECT, INC.
                  5959 Shallowford Road
                  Suite 309
                  Chattanooga, Tennessee 37421
                  Attention:  Mr. Douglas H. Fisher

                                       12

<PAGE>
                  Telephone:  (423) 899-6942
                  Telecopy:   (423) 456-3490

Each notice shall be deemed given and received:

                  (i)   if given by telecopy, when the telecopy is transmitted
         to the party's telecopy number specified above and confirmation of
         complete receipt is received by that transmitting party during normal
         business hours on any Business Day or on the next Business Day if not
         confirmed during normal business hours;

                  (ii)  if hand delivered, when delivered;

                  (iii) if given by nationally recognized and reputable
         overnight delivery service, the Business Day on which the notice is
         actually received by the party; or

                  (iv)  if given by certified mail, return receipt requested,
         postage prepaid, two Business Days after posted with the United States
         Postal Service.

         Section 5.2   FURTHER ASSURANCES. Each party hereto agrees to perform
any further acts and to execute and deliver any other documents which may be
reasonably necessary to carry out the provisions of this Agreement.

         Section 5.3   GOVERNING LAW. This Agreement shall be interpreted,
construed and enforced in accordance with the laws of the State of Alabama.

         Section 5.4   CAPTIONS AND HEADINGS. The captions or headings in this
Agreement are made for convenience and general reference only and shall not be
construed to describe, define or limit the scope or intent of the provisions of
this Agreement.

         Section 5.5   SEVERABILITY. The provisions of this Agreement shall be
severable and if any provisions shall be invalid or void or unenforceable in
whole or in part for any reason, the remaining provisions shall remain in full
force and effect.

         Section 5.6   ENTIRE AGREEMENT; MODIFICATIONS. This Agreement contains
the entire agreement of the parties and supersedes any and all prior agreements
between the parties, written or oral, with respect to the purchase and sale
contemplated hereby. This Agreement may not be changed or terminated orally, but
may only be changed by an agreement in writing signed by the party or parties
against whom enforcement of any waiver, change, modification, extension,
discharge or termination is sought.

         Section 5.7   COUNTERPARTS. This Agreement may be executed in several
counterparts, each of which, when so executed, shall be deemed to be an
original, and such counterparts shall, together, constitute and be one and the
same instrument.

                                       13

<PAGE>

         Section 5.8   BINDING EFFECT. This Agreement shall be binding and shall
inure to the benefit of the parties hereto, and their respective heirs,
legatees, executors, administrators, successors and assigns.

         Section 5.9   ASSIGNMENT. Purchaser may assign this Agreement and all
of Purchaser's right, title and interest (but not its obligations) hereunder to
any affiliate, subsidiary, or other related entity of Purchaser without the
prior written consent of Seller.

         Section 5.10  NO RULE OF CONSTRUCTION. The parties acknowledge that
this Agreement was initially prepared by Purchaser solely as a convenience and
that all parties hereto, and their counsel, have read and fully negotiated all
the language used in this Agreement. The parties acknowledge that, because all
parties and their counsel participated in negotiating and drafting this
Agreement, no rule of construction shall apply to this Agreement which construes
ambiguous or unclear language in favor of or against any party because such
party drafted this Agreement.

         Section 5.11  INTEGRATION OF SCHEDULES. All schedules, exhibits and
documents referred to in or attached to this Agreement are integral parts of
this Agreement as if fully set forth herein, and all statements appearing
therein shall be deemed disclosed and relied upon for all purposes and not just
in connection with the specific representation to which they are explicitly
referenced.

         Section 5.12  "INCLUDING." The word "including," when following any
general statement, term or matter shall not be construed to limit such
statement, term or matter to the specific terms or matters as provided
immediately following the word "including" or to similar items or matters,
whether or not non-limiting language (such as "without limitation," "but not
limited to," or words of similar import) as used with reference to the word
"including" or the similar items or matters, but rather shall be deemed to refer
to all other items or matters that could reasonably fall within the broadest
possible scope of the general statement, term or matter.

                                   ARTICLE 6.

                                   DEFINITIONS

         Section 6.1   GLOSSARY OF TERMS. As used in this Agreement, the
following terms shall have the meanings as indicated:

         (a)   ACCOUNTS RECEIVABLE means all receivables of Seller's Business
arising out of the sale of goods and services by Seller prior to the Closing
Date, but for which such goods or services have not yet been shipped or
performed by Seller.

         (b)   ADVERSE CONSEQUENCES means all actions, lawsuits, proceedings,
hearings, investigations, charges, complaints, claims, demands, injunctions,
judgments, orders, decrees, rulings, damages, dues, penalties, fines, costs,
amounts paid in settlement, liabilities, obligations, taxes, liens, losses,
expenses and fees, including court costs and reasonable attorneys' fees and
expenses.

         (c)   AGREEMENT means this Asset Purchase Agreement.

                                       14
<PAGE>

         (d)   ASSETS has the meaning set forth in Section 1.1(a).

         (e)   ASSUMED LIABILITIES has the meaning set forth in Section 1.2(b).

         (f)   BALANCE SHEET DATE has the meaning set forth in Section 2.3.

         (g)   BUSINESS DAY means each Monday, Tuesday, Wednesday, Thursday and
Friday which is not a day on which national banks in the City of Birmingham,
Alabama are closed.

         (h)   CLOSING means the closing of the transactions as contemplated by
this Agreement.

         (i)   CLOSING DATE has the meaning set forth in Section 1.1(a)

         (j)   EFFECTIVE DATE has the meaning set forth in Section 1.1(a).

         (k)   EMPLOYEE PLANS has the meaning set forth in Section 2.11.

         (l)   ERISA has the meaning set forth in Section 1.4(b).

         (m)   INDEMNIFIED PARTY has the meaning set forth in Section 4.4.

         (n)   INDEMNIFYING PARTY has the meaning set forth in Section 4.4.

         (o)   LAWS means all federal, state and local laws, regulations,
ordinances, proceedings or orders, including the Federal Environmental
Protection Act, the Occupational Safety and Health Act, the Employee Retirement
Income Security Act, all Medicare and Medicaid laws, all Hazardous Materials
Laws, rules and regulations and all federal, state and local licensing and
health laws and requirements and other similar statutes.

         (p)   LICENSES AND APPROVALS has the meaning set forth in Section
1.6(b)(vi) hereof.

         (q)   OFFER PRICE has the meaning set forth in Section 1.2(a) hereof.

         (r)   ORDINARY COURSE OF BUSINESS means the ordinary course of business
consistent with past custom and practice (including with respect to quantity and
frequency).

         (s)   PARTY means any of Purchaser, Seller or any of its Shareholders.

         (t)   PURCHASE PRICE has the meaning set forth in Section 1.2(a)
hereof.

         (u)   PURCHASER has the meaning set forth in the first paragraph of
this Agreement.

         (v)   SELLER has the meaning set forth in the first paragraph of this
Agreement.

         (w)   SELLER'S BUSINESS has the meaning set forth in the recitals
hereof.

                                       15
<PAGE>

         (x)   SHAREHOLDERS has the meaning set forth in Section 2.6 hereof.

         (y)   STATE means the State of Alabama.

         IN WITNESS WHEREOF, Seller and Purchaser have executed and delivered
this Agreement as of the day and year first written above.

                                   PURCHASER:

                                   AVALON-BORDEN COMPANIES, INC.
                                   a Delaware corporation

                                   By: /s/ WALTER R. SIMS
                                       ----------------------------------
                                       Walter R. Sims
                                       Executive Vice President

                                   SELLER:

                                   CHATTANOOGA REGIONAL
                                   INTERCONNECT, INC.,
                                   a Tennessee corporation

                                   By: /s/ DOUGLAS H. FISHER
                                       ----------------------------------
                                       Mr. Douglas H. Fisher
                                       Its President

                                       16

<PAGE>

                                SCHEDULE INDEX TO
                           ASSET PURCHASE AGREEMENT OF
                     CHATTANOOGA REGIONAL INTERCONNECT, INC.

SCHEDULE

1.1(a)(i)         Assets of Seller

1.1(a)(ii)        Contracts and Agreements

1.2(a)(i)         Prepaid Receivables

1.2(a)(ii)        Promissory Note

1.2(b)            Listing of Assumed Liabilities

1.2(c)            Allocation of Purchase Price

1.4(a)            List of Seller's Employees to be retained by Purchaser

1.5(b)(viii)      Power of Attorney

1.5(b)(ix)        Client/Vendor List

1.5(b)(x)         National Cable Corporation Contract Termination

1.7               Assignments and Consents

2.3               Balance Sheet

2.4               Seller's Financial Statements

2.7               Location of Assets

2.8               Liabilities to be Satisfied at Closing

2.11              Employee Plans (Insurance/Profit Sharing)

2.14              Listing of all Licenses and Approvals

NOTE:    This Schedule Index has been included in this Agreement solely for the
         convenience and general reference of the parties and shall not be
         construed to describe, define or limit the scope or intent of the
         provisions of this Agreement.

<PAGE>

                               SCHEDULE 1.1(a)(i)

                             INVENTORY OF ASSETS OF
                     CHATTANOOGA REGIONAL INTERCONNECT, INC.

QTY.              DESCRIPTION

                                    See Attached

<PAGE>

                              CRI ASSET EVALUATION

QTY      DESCRIPTION                                       VALUE         TOTAL
--------------------------------------------------------------------------------

 2       Falcone ASI 4x4 Autoserters                     1,000.00      2,000.00
 2       Preview Switchers                                 100.00        200.00
 4       Falcone FVS Verification Systems                  150.00        600.00
27       Sony 7020 Umatic 3/4" Tape Decks                  700.00     18,900.00
 9       Computer 13" Monitors                             100.00        900.00
10       keyboards                                           0.00          0.00
11       Racking systems                                    25.00        275.00
 1       IBM Clone PC's                                    300.00        300.00
 7       ACL 200                                         1,500.00     10,500.00
 3       ACL 100                                         1,000.00      3,000.00
 1       ACC 440                                         1,500.00      1,500.00
11       2400 baud external modem                           10.00        110.00
 6       Phone & Power Surge Protectors                      5.00         40.00
 2       Sony 5850 3/4" Edit Tape Deck                   1,000.00      2,000.00
 1       Tone Generator                                     10.00         10.00
 1       Central Office Software & Verification System                     0.00
 1       Printer                                            50.00         50.00
 1       Delta DCM1488B Monitor                            125.00        125.00
 8       UPS Power Battery Backup Systems                   50.00        400.00
11       Wegener mainframes                                250.00      2,750.00
52       Wegener Network Decoder Cards                     250.00     13,000.00
Multi Cabling, Connecting Equipment and Power Strips
                                                                      ----------

                                                            TOTAL:    56,660.00

          Helicon $10,000 Operator Fee Deposit                        10,000.00
                                                                      ----------
                                                                      66,660.00

<PAGE>

                         CRI FIXTURE & FURNITURE ASSETS

QTY       DESCRIPTION
--------------------------------------------------------------------------------
 1        Large Edit Console
 1        Small Edit Console
 4        Production Equipment Racks
 2        Production Suite Chairs
 6        Sales Desks
 6        Sales Office Chairs
 1        Sales Mgr Exec Desk
 1        Sales Mgr Chair
 1        Sales Mgr Console
 1        Mgmt. Exec Desk
 1        Mgmt. Chair
 1        Receptionist Desk
 1        Receptionist Office Chair
 2        Guest Chairs
Misc      Staplers Calculators Trash Cans, etc. to accommodate each desk

<PAGE>

                         CRI PRODUCTION ASSETS VALUATION

INVENTORY #       DESCRIPTION                         QTY              VALUE
--------------------------------------------------------------------------------
   1231           Sony PVM1380 Monitor                 1              $250.00
   1232           Sony PVM1380 Monitor                 1              $250.00
   1234           Sony Edit Controler RM-450           1              $250.00
   1235           Kelsey 12 Channel Mixer Audio        1              $250.00
   1237           Sony PVM8020 Field Monitor           1              $400.00
   1238           Toaster Memory
   1239           Newtek Video Toaster 4000            1           $10,000.00
   1240           Toaster Memory Block
   1241           Sony BVE600                          1            $2,000.00
   1242           Grass 110E switcher                  1            $8,000.00
   1243           JVC TMR14U Monitor                   1              $300.00
   1244           JVC TMR14U Monitor                   1              $300.00
   1245           AR Speaker                           1               $50.00
   1246           AR Speaker                           1               $50.00
   1247           Realistic Power Amp                  1               $50.00
   1248           Jazz DVE 38-FXC902-01                1            $6,000.00
   1249           Cybex Computer                       1              $300.00
   1250           Monitor                              1
   1251           Keyboard                             1
   1252           Ramsa audio mixer                    1              $150.00
   1253           Tascam 22-2 1/4" Reel to Reel        1              $150.00
   1254           Sony CDP291 CD Player                1              $100.00
   1256           Sony VO5850 Edit Deck                1            $1,500.00
   1257           Sony BVU900 3/4"sp Deck              1            $2,500.00
   1258           ADC patch bay                        1              $750.00
   1259           ADC patch bay                        1              $750.00
   1260           Sony BVR-55 remote controller        1              $100.00
   1261           Tektronic 1480R Vectorscope          1              $250.00
   1262           Tektronic 520A Waveform              1              $250.00
   1263           Sigma CSG455 Sync Gen.               1              $100.00
   1264           Video Tech Dist. Amp VDA16x4         1              $250.00
   1266           Sony SVO1620 VHS Deck                1              $150.00
   1267           Sony VO9850                          1            $4,500.00
   1268           Ampex CVR65 Beta Sp Playbk           1           $12,000.00
   1269           Sony BVU920                          1            $3,500.00
   1271           EYE 2 SM1411 Compiler Monitor        1
   1272           AD Systems Compiler                  1            $1,250.00
   1274           AD Systems ABC Disk Drive            1
   1283           Commadore Monitor Toaster            1
   1284           AD Systems Inserter                  1              $800.00
   1285           Hitachi Camera Monitor               1

<PAGE>

   1286           Hitachi View Finder                  1
   1287           Lowell 2 piece Light Kit             1              $300.00
   1289           Canon 12x1 Lens                      1
   1290           Hitachi Z1CU 3-chip Camera           1            $6,000.00
   1295           Sony BVU150 w/batteries              1              $800.00
                  Pesa K4722 CG                        1              $300.00
                  Triplite Line Stablizer LS600        1               $50.00
                  Batteries EP90-5 w/charger           4              $100.00
                  Anton Bauer Brick Batt w/charger     1               $25.00
                  Ampex CVR35 Beta field record        1            $2,000.00
                  JVC TW118 Dual Cass. Deck            1              $100.00
                  Sony VO-9800 3/4" Tape Deck          1            $3,000.00
                  Revox PR99MKiii 1/4" RtoR            1              $150.00
                  Denon PMA8600 Power Amp              1              $200.00
                  Denon DN950FA CD Player              1              $125.00
                  Compaq Presario 140 Monitor          1               $50.00
                  Compaq "CDS 954 486 Comp             1              $350.00
                  Mackie 1202VLS Audio Mixer           1              $175.00
                  ITC Cart Machine                     1              $100.00
                  Yamaha Studio Monitors               2              $100.00
                  Sennheiser 421 Microphone            1               $75.00
                                                                   ----------

                                                                   $71,500.00
                                                                   ==========

<PAGE>

                               SCHEDULE 1.1(a)(ii)

                            CONTRACTS AND AGREEMENTS

1.       Helicon Agreement Attached.

2.       Ringold Falcon Agreement Attached.

3.       Rainsville Falcon Agreement Attached.

4.       Bledsoe County Telephone Co-Op Agreement Attached.

5.       Century Communications Agreement Attached.

<PAGE>

                           ADVERTISING SALES AGREEMENT

This Agreement is made this 21st day of December, 1998, by and between Falcon
First, Inc. (herein "Owner") and Chattanooga Regional Interconnect (herein
"Contractor"), who do hereby agree as follows:

1.  As used herein, the following terms shall have the respective meanings
stated below:

    a.   CABLECAST AREA. The area covered by the franchises held by Falcon
         First, Inc. located in Rainsville, Alabama.

    b.   CABLE SYSTEM(S). The cable television system(s) owned by Falcon First,
         Inc. over which Falcon First, Inc. cablecasts to the Cablecast Area.

    c.   NETWORK. All satellite-delivered cable channels which provide local
         availability for advertising.

    d.   ADVERTISING INVENTORY. Time available by Owner for sale of commercial
         advertising on Network including all national, regional and local
         spots.

    e.   NET SALES REVENUES. Gross advertising revenues less any applicable
         agency and Rep. firm commissions.

    f.   MINIMUM COMPENSATION. $1,500 per month shall be the minimum
         compensation which Owner must receive for each broadcast month.

2.  The term of this Agreement shall be for 3 years, commencing on January 1,
1999, and ending on December 31, 2001.

3.  Owner grants to Contractor the non-exclusive rights for the marketing and
sale of all Advertising Inventory on the terms and conditions set forth herein
on those channels listed on Exhibit "A" attached hereto and incorporated herein
by reference ("Network") in the Cablecast Area. In this connection, Owner
understands that Contractor will make binding commitments to advertisers for the
sale of Advertising Inventory. To avoid conflicts in the sale of advertising
spots, Owner agrees that it will not itself sell Advertising Inventory and will
not permit any other person, firm, or entity to sell Advertising Inventory;
except for Advertising Inventory sold in Scottsboro, Alabama, and in the
surrounding Jackson County. Owner reserves the exclusive rights to sell
Rainsville Advertising Inventory to Scottsboro and Jackson County advertisers
and Contractor agrees to playback all such Advertising Inventory sold by Owner
in Scottsboro and Jackson County and further agrees it will not share in the
revenues generated as a result of the sale of said Advertising Inventory sold by
Owner. Owner further reserves the right to sell advertising on it's own local
origination channel, the character generator channel, and The Weather Channel.

4.  Contractor agrees to: (a) handle the marketing and sale of Advertising
Inventory including contracting, negotiating with and making sales to potential
advertisers; (b) handle all contracts and paperwork in connection with the sale
of Advertising Inventory; (c) negotiate with and enter into binding contracts
with advertising agencies and advertisers; (d) handle all commercial production,
where required; (e) handle all accounting, scheduling, billing, collecting,
affidavits, and tape trafficking.

<PAGE>

5.  Contractor agrees that it will use its best efforts to maximize revenue from
the sale of Advertising Inventory.

6.  The Net Sales Revenues derived from the sale of Advertising Inventory shall
be divided as follows: 35% to Owner and 65% to Contractor. In no event shall
Owner receive less that the Minimum Compensation.

7.  Contractor shall provide, at Contractor's expense, all of the equipment
necessary to cablecast the advertising spots. The cost of the maintenance,
repair, and replacement of such equipment shall be the sole responsibility of
the Contractor. Owner shall provide the Contractor's employees or agents
reasonable access to its headend to perform the advertising insertions and
maintain equipment.

8.  Contractor shall configure and operate its insertion equipment throughout
the term of the Agreement in a manner that, at no cost to Owner, permits it to
run, on a schedule requested by Owner, material provided by Owner. Owner shall
have the right, for each month during the term of the Agreement, to recapture
and utilize (in Owner's sole discretion, for such purposes as Owner shall deem
appropriate) up to 25% of the total Advertising inventory for such month for the
purpose of cablecasting such material.

9.  Owner understands that from time to time it may be in the best interests of
Contractor to market and sell advertising spots together under one contract to
certain advertisers without distinguishing between Advertising Inventory and
Contractor's advertising inventory on the other cable system(s) (such a contract
hereafter referred to as a "Group Buy"). In such case, Owner shall be paid the
higher of: (a) the amount it would have received based on its own rate care for
the Cable System(s) included in the Group Buy as though the Group Buy did not
exist; or (b) the percentage of the Net Sales Revenues from the Group Buy that
Owner's subscribers included in the Group Buy bear to all subscribers included
in the Group Buy. Owner shall provide updated subscriber numbers to Contractor
every six (6) months during the term of this Agreement.

10. At no time during the term of this Agreement shall Contractor enter into any
trade or barter advertising agreement for any Advertising Inventory without the
prior express written consent of Vice President of Advertising Sales for Owner.

11. At the end of each calendar month, Contractor shall account to and pay Owner
the larger of the Minimum Compensation or its share of the Net Sales Revenues as
of the end of the latest broadcast month based on collections during the latest
broadcast month. For purposes of this paragraph, the term "latest broadcast
month" shall mean the latest broadcast month ending prior to or at the end of
the preceding calendar month. Such accounting shall include a list of all
advertisers for the current month and their current month invoice totals along
with a client payment summary report for all payments received during the
previous month and upon which the monthly payment to Owner is being calculated.
Contractor shall be responsible for payment to Owner for all Advertising
Inventory sold and invoiced by it prior to such invoicing reaching 90 days past
due irrespective of whether advertiser has paid Contractor for such airtime.

12. Cable System shall not participate in any production revenues generated by
Contractor as a result of production work done for advertisers. Owner shall not
be responsible for any expenses nor incur any liability as a result of
production work.

                                        2
<PAGE>

13. Contractor represents and warrants that the advertising material produced
and/or procured by Contractor for cablecasting over Owner's Cable System(s) and
the insertions performed by Contractor will not contain any libelous,
slanderous, obscene or defamatory material and will not, when exhibited by
Owner, violate or infringe upon the rights of any person, firm or corporation or
other party, or give rise to any adverse claim with respect to any common law or
other right (including, without limitation, any copyright, literary trademark,
contractual, dramatic or motion picture right, or right of privacy) of any
person, firm, corporation or other party. Contractor represents and warrants
that advertising sold by it will not violate or infringe upon any music
performance and/or music synchronization rights. Contractors represents and
warrants that the advertising material produced and/or procured by Contractor
for cablecasting over Owner's Cable System(s) and the insertions performed by
Contractor will comply in all respects with applicable laws and regulations.
Owner reserves the right to refuse to transmit or exhibit any commercial or
other material which Owner deems to be in violation of the terms contained in
this Agreement although Owner shall have no obligation to preview advertising
material and inserts that are cablecast over Owner's Cable System(s).
Contractor's representations and warranties contained in this Agreement shall
survive the termination of this Agreement.

14. Each party hereto shall indemnify and forever hold harmless the other, its
successors to and assignees, for, from and against any claim, loss or damage
costs or expense (including, without limitation, reasonable counsel fees)
resulting from any misrepresentation made by it or any breach by it of any
provisions of this Agreement.

15. In any case in which indemnification is being sought hereunder, the party
seeking indemnification shall afford the Indemnifying Party the opportunity of
controlling the litigation, settlement, or other disposition of such claim. The
Indemnified Party shall fully cooperate with the Indemnifying Party in
connection with such litigation, settlement or other disposition.

16. No party to this Agreement shall have any claims against the other for
failure to provide or exhibit, as the case may be, advertisement is such failure
is due to any act of God, accident, fire, lock-out, strike or other labor
dispute, riot or severe commotion, failure or misoperation of technical
facilities, act of public enemy, enactment, rule, order or act of governmental
authority, failure of electrical power or other cause beyond a party's control.

17. At all times during the term of this Agreement, Contractor shall at its own
cost carry the following insurance coverage: (a) comprehensive public liability
insurance for bodily injury or death and property damage of not less than five
hundred thousand dollars ($500,000) combined single limit with respect to any
one occurrence; (b) broadcaster's and cablecaster's liability insurance of not
less than one million ($1,000,000). Owner shall be furnished with a certificate
of insurance promptly upon issuance of said policies and each renewal and
replacement thereof. Under the terms of said policies, the insurer shall be
required to give Owner at least 30-days advance written notice of any lapse in
any such policy. Contractor shall also carry all necessary statutory and
regulatory minimum workmen's compensation insurance.

18. This Agreement may be terminated by either party upon occurrence of any of
the following circumstances: (a) if either party shall commit a material default
in its performance of any provision of this Agreement and such default is not or
cannot be cured within ten (10) days after such party's receipt of written
notice of the other party's decision to terminate; (b) if either party shall be
adjudicated as bankrupt or insolvent or shall be otherwise unable to fulfill all
of its obligations under this Agreement; (c) Contractor should fail to pay and
provide

                                        3
<PAGE>
to Owner the dollar amount and accounting when due pursuant to paragraphs 6 and
11 of this Agreement; or (d) Owner should eliminate Rainsville cable head end so
that local advertising originating exclusively from the Rainsville location
ceases to exist. In the event of any termination of this Agreement, Contractor's
obligation to pay and provide to Owner the compensation and accounting
theretofore due and owing Owner hereunder shall survive.

19. In the event that this Agreement is not renewed or is terminated by either
party according to terms outlined herein, Contractor shall be solely responsible
for any liability arising from its obligations that are not fully performed and
agrees to indemnify and hold harmless Owner from all claims, actions, or
lawsuits arising from or relating to any such nonrenewal. Further, Contractor's
obligations under paragraph 14 of this Agreement shall continue in full force
and effect thereafter, subject to the applicable statute of limitations.

20. This is an Agreement for exclusive representation for the sale of
Advertising Inventory and no provision or provisions of this Agreement expressed
or implied shall be construed to create a legal partnership, joint venture, or
other business entity among the parties hereto.

21. This Agreement shall be governed by and construed in accordance with the
laws of the State of Alabama.

22. Contractor shall maintain accurate books and records of the transactions
covered by this Agreement. Owner shall have the right, upon reasonable notice to
Contractor, to inspect any and all relevant books and records of Contractor
pertaining to this Agreement during ordinary business hours.

23. This Agreement is subject to the terms and conditions of the franchises held
by Owner; to any permits, licenses, or other authorizations necessary for it to
construct, operate or manage its Cable System(s); to all federal, state and
municipal laws, regulations and decisions, as such exist now and in the future;
and to the terms of applicable pay and satellite programming agreements, as they
exist now or in the future.

24. The prevailing party shall be entitled to reasonable attorney's fees and all
court costs in any litigation instituted to enforce the provisions of this
Agreement.

25. This Agreement shall be binding and inure to the benefit of the parties
hereto and their respective permitted assigns and successors. Contractor shall
not assign this Agreement without prior written consent of Owner.

                                        4
<PAGE>

26. All notice required or permitted to be made hereunder shall be in writing
and delivered by hand or certified mail, return receipt requested.

          IF TO OWNER, ADDRESSED TO:

          Mr. Ovie Cowles, V.P.
          Advertising Sales and Production
          Falcon Cable TV
          10900 Wilshire Blvd., 15th Floor
          Los Angeles, CA  90024

          IF TO CONTRACTOR, ADDRESSED TO:

          Mr. Peter P. Waraksa
          Chattanooga Regional Interconnect
          5959 Shallowford Road, Suite 4093
          Chattanooga, TN  37421

27. This writing constitutes the entire Agreement between the parties and may
not be amended or modified except by written instrument signed by both parties.

28. This Agreement shall not be deemed effective or of any force or effect
unless and until signed by Owner's Vice President of Advertising Sales and
Production.

          IN WITNESS THEREOF, the parties have executed this Agreement.

          (Owner)                            (Contractor)

          BY: /s/ OVIE COWLES                BY: /s/ PETER P. WARAKSA
          -------------------                ------------------------
          Ovie Cowles                        Peter P. Waraksa

                                                     President, Chattanooga
                                                     Regional Interconnect
                                                     Executive Vice President,
          TITLE:  V.P., Advertising Sales    TITLE:  Avalon Media Group, Inc.
          -----------------------            ----------------------------------

          DATE:  1/19/99                     DATE:  1/14/99
          -------------------                -----------------

                                        5
<PAGE>
                                   EXHIBIT "A"

Advertising Channels*:              ESPN
                                    CNN
                                    USA
                                    TNN

*Contractor reserves the option of adding up to four additional Advertising
Channels upon 30-day written notice to Owner.

                                        6
<PAGE>

                           ADVERTISING SALES AGREEMENT

This Agreement is made this 21st day of December, 1998, by and between Falcon
First, Inc. (herein "Owner") and Chattanooga Regional Interconnect (herein
"Contractor"), who do hereby agree as follows:

1.  As used herein, the following terms shall have the respective meanings
stated below:

    a.   CABLECAST AREA. The area covered by the franchises held by Falcon
         First, Inc. located in Ringgold, Georgia.

    b.   CABLE SYSTEM(S). The cable television system(s) owned by Falcon First,
         Inc. over which Falcon First, Inc. cablecasts to the Cablecast Area.

    c.   NETWORK. All satellite-delivered cable channels which provide local
         availability for advertising.

    d.   ADVERTISING INVENTORY. Time available by Owner for sale of commercial
         advertising on Network including all national, regional and local
         spots.

    e.   NET SALES REVENUES. Gross advertising revenues less any applicable
         agency and Rep. firm commissions.

    f.   MINIMUM COMPENSATION. $3,000 per month shall be the minimum
         compensation which Owner must receive for each broadcast month.

2   The term of this Agreement shall be for 3 years, commencing on January 1,
1999, and ending on December 31, 2001.

3.  Owner grants to Contractor the non-exclusive rights for the marketing and
sale of all Advertising Inventory on the terms and conditions set forth herein
on those channels listed on Exhibit "A" attached hereto and incorporated herein
by reference ("Network") in the Cablecast Area. In this connection, Owner
understands that Contractor will make binding commitments to advertisers for the
sale of Advertising Inventory. To avoid conflicts in the sale of advertising
spots, Owner agrees that it will not itself sell Advertising Inventory and will
not permit any other person, firm, or entity to sell Advertising Inventory;
except for Advertising Inventory sold in Dalton, Georgia, and in the surrounding
Whitfield County. Owner reserves the exclusive rights to sell Ringgold
Advertising Inventory to Dalton and Whitfield County advertisers and Contractor
agrees to playback all such Advertising Inventory sold by Owner in Dalton and
Whitfield County and further agrees it will not share in the revenues generated
as a result of the sale of said Advertising Inventory sold by Owner. Owner
further reserves the right to sell advertising on it's own local origination
channel, the character generator channel, and The Weather Channel.

4.  Contractor agrees to: (a) handle the marketing and sale of Advertising
Inventory including contracting, negotiating with and making sales to potential
advertisers; (b) handle all contracts and paperwork in connection with the sale
of Advertising Inventory; (c) negotiate with and enter into binding contracts
with advertising agencies and advertisers; (d) handle all commercial production,
where required; (e) handle all accounting, scheduling, billing, collecting,
affidavits, and tape trafficking.

<PAGE>

5.  Contractor agrees that it will use its best efforts to maximize revenue from
the sale of Advertising Inventory.

6.  The Net Sales Revenues derived from the sale of Advertising Inventory shall
be divided as follows: 35% to Owner and 65% to Contractor. In no event shall
Owner receive less that the Minimum Compensation.

7.  Contractor shall provide, at Contractor's expense, all of the equipment
necessary to cablecast the advertising spots. The cost of the maintenance,
repair, and replacement of such equipment shall be the sole responsibility of
the Contractor. Owner shall provide the Contractor's employees or agents
reasonable access to its headend to perform the advertising insertions and
maintain equipment.

8.  Contractor shall configure and operate its insertion equipment throughout
the term of the Agreement in a manner that, at no cost to Owner, permits it to
run, on a schedule requested by Owner, material provided by Owner. Owner shall
have the right, for each month during the term of the Agreement, to recapture
and utilize (in Owner's sole discretion, for such purposes as Owner shall deem
appropriate) up to 25% of the total Advertising inventory for such month for the
purpose of cablecasting such material.

9.  Owner understands that from time to time it may be in the best interests of
Contractor to market and sell advertising spots together under one contract to
certain advertisers without distinguishing between Advertising Inventory and
Contractor's advertising inventory on the other cable system(s) (such a contract
hereafter referred to as a "Group Buy"). In such case, Owner shall be paid the
higher of: (a) the amount it would have received based on its own rate care for
the Cable System(s) included in the Group Buy as though the Group Buy did not
exist; or (b) the percentage of the Net Sales Revenues from the Group Buy that
Owner's subscribers included in the Group Buy bear to all subscribers included
in the Group Buy. Owner shall provide updated subscriber numbers to Contractor
every six (6) months during the term of this Agreement.

10. At no time during the term of this Agreement shall Contractor enter into any
trade or barter advertising agreement for any Advertising Inventory without the
prior express written consent of Vice President of Advertising Sales for Owner.

11. At the end of each calendar month, Contractor shall account to and pay Owner
the larger of the Minimum Compensation or its share of the Net Sales Revenues as
of the end of the latest broadcast month based on collections during the latest
broadcast month. For purposes of this paragraph, the term "latest broadcast
month" shall mean the latest broadcast month ending prior to or at the end of
the preceding calendar month. Such accounting shall include a list of all
advertisers for the current month and their current month invoice totals along
with a client payment summary report for all payments received during the
previous month and upon which the monthly payment to Owner is being calculated.
Contractor shall be responsible for payment to Owner for all Advertising
Inventory sold and invoiced by it prior to such invoicing reaching 90 days past
due irrespective of whether advertiser has paid Contractor for such airtime.

12. Cable System shall not participate in any production revenues generated by
Contractor as a result of production work done for advertisers. Owner shall not
be responsible for any expenses nor incur any liability as a result of
production work.

                                        2

<PAGE>

13. Contractor represents and warrants that the advertising material produced
and/or procured by Contractor for cablecasting over Owner's Cable System(s) and
the insertions performed by Contractor will not contain any libelous,
slanderous, obscene or defamatory material and will not, when exhibited by
Owner, violate or infringe upon the rights of any person, firm or corporation or
other party, or give rise to any adverse claim with respect to any common law or
other right (including, without limitation, any copyright, literary trademark,
contractual, dramatic or motion picture right, or right of privacy) of any
person, firm, corporation or other party. Contractor represents and warrants
that advertising sold by it will not violate or infringe upon any music
performance and/or music synchronization rights. Contractor represents and
warrants that the advertising material produced and/or procured by Contractor
for cablecasting over Owner's Cable System(s) and the insertions performed by
Contractor will comply in all respects with applicable laws and regulations.
Owner reserves the right to refuse to transmit or exhibit any commercial or
other material which Owner deems to be in violation of the terms contained in
this Agreement although Owner shall have no obligation to preview advertising
material and inserts that are cablecast over Owner's Cable System(s).
Contractor's representations and warranties contained in this Agreement shall
survive the termination of this Agreement.

14. Each party hereto shall indemnify and forever hold harmless the other, its
successors to and assignees, for, from and against any claim, loss or damage
costs or expense (including, without limitation, reasonable counsel fees)
resulting from any misrepresentation made by it or any breach by it of any
provisions of this Agreement.

15. In any case in which indemnification is being sought hereunder, the party
seeking indemnification shall afford the Indemnifying Party the opportunity of
controlling the litigation, settlement, or other disposition of such claim. The
Indemnified Party shall fully cooperate with the Indemnifying Party in
connection with such litigation, settlement or other disposition.

16. No party to this Agreement shall have any claims against the other for
failure to provide or exhibit, as the case may be, advertisement is such failure
is due to any act of God, accident, fire, lock-out, strike or other labor
dispute, riot or severe commotion, failure or misoperation of technical
facilities, act of public enemy, enactment, rule, order or act of governmental
authority, failure of electrical power or other cause beyond a party's control.

17. At all times during the term of this Agreement, Contractor shall at its own
cost carry the following insurance coverage: (a) comprehensive public liability
insurance for bodily injury or death and property damage of not less than five
hundred thousand dollars ($500,000) combined single limit with respect to any
one occurrence; (b) broadcaster's and cablecaster's liability insurance of not
less than one million ($1,000,000). Owner shall be furnished with a certificate
of insurance promptly upon issuance of said policies and each renewal and
replacement thereof. Under the terms of said policies, the insurer shall be
required to give Owner at least 30-days advance written notice of any lapse in
any such policy. Contractor shall also carry all necessary statutory and
regulatory minimum workmen's compensation insurance.

18. This Agreement may be terminated by either party upon occurrence of any of
the following circumstances: (a) if either party shall commit a material default
in its performance of any provision of this Agreement and such default is not or
cannot be cured within ten (10) days after such party's receipt of written
notice of the other party's decision to terminate; (b) if either party shall be
adjudicated as bankrupt or insolvent or shall be otherwise unable to fulfill all
of its obligations under this Agreement; (c) Contractor should fail to pay and
provide

                                        3
<PAGE>

to Owner the dollar amount and accounting when due pursuant to paragraphs 6 and
11 of this Agreement; or (d) Owner should eliminate Rainsville cable head end so
that local advertising originating exclusively from the Rainsville location
ceases to exist. In the event of any termination of this Agreement, Contractor's
obligation to pay and provide to Owner the compensation and accounting
theretofore due and owing Owner hereunder shall survive.

19. In the event that this Agreement is not renewed or is terminated by either
party according to terms outlined herein, Contractor shall be solely responsible
for any liability arising from its obligations that are not fully performed and
agrees to indemnify and hold harmless Owner from all claims, actions, or
lawsuits arising from or relating to any such nonrenewal. Further, Contractor's
obligations under paragraph 14 of this Agreement shall continue in full force
and effect thereafter, subject to the applicable statute of limitations.

20. This is an Agreement for exclusive representation for the sale of
Advertising Inventory and no provision or provisions of this Agreement expressed
or implied shall be construed to create a legal partnership, joint venture, or
other business entity among the parties hereto.

21. This Agreement shall be governed by and construed in accordance with the
laws of the State of Georgia.

22. Contractor shall maintain accurate books and records of the transactions
covered by this Agreement. Owner shall have the right, upon reasonable notice to
Contractor, to inspect any and all relevant books and records of Contractor
pertaining to this Agreement during ordinary business hours.

23. This Agreement is subject to the terms and conditions of the franchises held
by Owner; to any permits, licenses, or other authorizations necessary for it to
construct, operate or manage its Cable System(s); to all federal, state and
municipal laws, regulations and decisions, as such exist now and in the future;
and to the terms of applicable pay and satellite programming agreements, as they
exist now or in the future.

24. The prevailing party shall be entitled to reasonable attorney's fees and all
court costs in any litigation instituted to enforce the provisions of this
Agreement.

25. This Agreement shall be binding and inure to the benefit of the parties
hereto and their respective permitted assigns and successors. Contractor shall
not assign this Agreement without prior written consent of Owner.

                                        4
<PAGE>

26. All notice required or permitted to be made hereunder shall be in writing
and delivered by hand or certified mail, return receipt requested.

          IF TO OWNER, ADDRESSED TO:

          Mr. Ovie Cowles, V.P.
          Advertising Sales and Production
          Falcon Cable TV
          10900 Wilshire Blvd., 15th Floor
          Los Angeles, CA  90024

          IF TO CONTRACTOR, ADDRESSED TO:

          Mr. Peter P. Waraksa
          Chattanooga Regional Interconnect
          5959 Shallowford Road, Suite 4093
          Chattanooga, TN  37421

27. This writing constitutes the entire Agreement between the parties and may
not be amended or modified except by written instrument signed by both parties.

28. This Agreement shall not be deemed effective or of any force or effect
unless and until signed by Owner's Vice President of Advertising Sales and
Production.

          IN WITNESS THEREOF, the parties have executed this Agreement.

          (Owner)                            (Contractor)

          BY: /s/ OVIE COWLES                BY: /s/ PETER P. WARAKSA
          ---------------                    --------------------
          Ovie Cowles                        Peter P. Waraksa

                                             President, Chattanooga Regional
                                                        Interconnect

          TITLE:  V.P., ADVERTISING SALES    TITLE:  EXECUTIVE VICE PRESIDENT,
                                                     AVALON MEDIA GROUP, INC.
          -----------------------            ----------------------------------

          DATE:   1/19/99                    DATE:   1/14/99
          -------------------                -----------------

                                        5

<PAGE>
                                   EXHIBIT "A"

Advertising Channels*:              ESPN
                                    CNN
                                    USA
                                    TNN

*Contractor reserves the option of adding up to four additional Advertising
Channels upon 30-day written notice to Owner.

                                        6
<PAGE>

                            CABLE AD SALES AGREEMENT

THIS AGREEMENT made and entered into this fifteenth day of May between
Chattanooga Regional Interconnect of Chattanooga, Tennessee, hereinafter
referred to as "Vendor", and Bledsoe County Telephone Co Op hereinafter referred
to as "Operator".

                                   WITNESSETH

WHEREAS, Operator owns and operates cable television systems, serving portions
of Sequatchie County, Tennessee and Bledsoe County Tennessee and subject to
franchises listed in Attachment A hereto.

WHEREAS, Vendor desires to acquire the exclusive right to sell advertising time,
where and when available, on those channels of Operator's system which are
specified on Attachment E hereto.

NOW, THEREFORE, in consideration of the premises and of the exchange of mutual
promise, covenants, representations and warranties herein contained, receipt of
which are specifically acknowledged by the parties hereto, said parties
intending to be logically bound thereby, do hereby covenant and agree as
follows:

1)  Operator does hereby agree that Vendor subject to the terms and conditions
hereinafter set forth, will have the exclusive right to sell advertising time on
specified cable television channels of Operator that are now, or will be in the
future, feasible or available for such use as more specifically delineated
herein.

2)  Vendor shall maintain all equipment necessary to produce and deliver
signals to the headend of Operator's system for the purpose of transmitting
advertising messages to Operator's subscribers, said equipment being described
in Attachment B hereto. Operator reserves right to charge Vendor at the rate of
$20.00 per hour in the event Operator employees preform work on behalf of the
Vendor.  Operator will make available at its headend such space as is necessary
for the installation and operation of such equipment needed to interface with
Operator's cable system. Vendor shall not maintain or otherwise be responsible
for any equipment or facilities of Operator that are required to the headend for
transmitting the said signal to Operator's subscribers.

<PAGE>

    Operator will use best efforts to cause the said signals to be transmitted
to its subscribers without degradation, and in a manner to achieve the same
quality as the signals transmitted on the other channels of the cable systems.
Operator shall not maintain or otherwise be responsible for any equipment or
facilities necessary to produce and deliver signals to the headend of Operator's
system for the purpose of transmitting advertising messages to Operator's
subscribers as generally specified in Attachment B. Vendor will cause said
advertising messages to be delivered to Operator's headend without degradation
and in a manner to achieve the same quality as the signals transmitted on
channel of the cable systems.

3)  Any failure, interruption or degradation in transmitting said signals, in
which advertising messages have been or may be inserted, either in whole or in
part, resulting from technical difficulties or failure of any of Operator's
equipment, will be promptly brought to the attention of Vendor and shall be
corrected by Operator as soon as reasonably possible. Vendor specifically
understands the Operator at its option may deliver some or all of the said
signals as part of a tier service or scrambled and agrees that such tiering or
scrambling shall not be considered degradation of signal quality as compared to
transmission of other system channels. Any failure, interruption or degradation
in inserted messages, either whole or in part resulting from technical
difficulties or failure of any of Vendor's equipment, will promptly be brought
to the attention of Vendor and shall be corrected by Vendor within three (3)
days.

4)  Vendor warrants that the advertising sold will not contain any libelous,
slanderous, obscene or defamatory material, and will not, when exhibited by
operator, violate or infringe upon the rights of any person, firm, or
corporation, or any other party, or give rise to any adverse claim with respect
to any common law or any other right (including, without limitation, any
copyright, literacy, trademark, contractual, dramatic or motion picture right,
or right of privacy of any person, firm, corporation, or any other party.)
Vendor further warrants that the advertising sold by Vendor will not violate or
infringe upon any music performance and/or music synchronization rights. The
Operator shall have the absolute right censor any commercial with content that
it deems to be unsuitable.

    Vendor agrees not to air commercials promoting Direct TV, Primestar, USSB,
Alphastar, Echostar, or any other competitive distributors advertisements.

                                       -2-

<PAGE>

5)  Vendor shall indemnify and hold Operator harmless from and against any and
all claims, damage or liability, including counsel fees and the cost and expense
of any legal action, from libel, slander, invasion of privacy, improper trade
practices, illegal competition, infringement or copyright or licenses, music
performance and/or music synchronization rights, or any other wrongful conduct
as well as any violation of laws or regulations, Federal, state or local,
resulting from the transmission of material supplied or produced by Vendor.

6)  Operator shall indemnify and hold Vendor harmless from and against any and
all claims, damage or liability, including counsel fees and the cost and expense
of any legal action, for libel, slander, invasion of privacy, improper trade
practices, illegal competition, infringement of trademark or trade name, unfair
competition, infringement of copyright or licenses, or any other wrongful
conduct, as well as any violation of laws or regulations, Federal, state or
local, resulting from the transmission of material supplied or produced by
Operator.

7)  This agreement is subject to the terms of the licenses held by Operator and
to all applicable Federal, state and municipal laws, regulations and decisions,
either presently in existence or enacted, make or enforced hereafter, including
regulations and actions of all governmental administrative agencies and
commissions having jurisdiction.

8)  Operator and Vendor recognize and agree that either Vendor or Operator may
sell it business and any and all assets of said business at any time during the
term of this Agreement. The parties agree that in the event Vendor desires to
sell its business or any part thereof, written notice thereof reciting all terms
and conditions of the offer to sell and buy, including identifications of the
parties involved, will be given to Operator and Operator shall, for the period
of thirty (30) days, have the option to purchase the business or assets from
Vendor at the price and under the same conditions which said business or assets
are finally offered to a third party. Operator's option as described above,
shall, at Operator's sole discretion, relate to Vendor's entire business or any
portion thereof. Upon Operator's failure to exercise its option in writing
within thirty (30) days after receipt of a written notice from Vendor of an
offer to sell by Vendor, Vendor may sell the business or assets to such third
party.

    Vendor will have no such right as to Operator only upon receipt of written
acceptance from Buyer of Operator's assets. However, Operator agrees that the
provisions of this contract will be binding on any assigns or successors in
interest of Operator. Vendor likewise agrees that the covenants and conditions
contained in this Agreement shall bind its successors in interest or assigns.
Operator's right of first refusal shall not be valid on any sale of partial
interest made through the Private Placement Sale of Stock.

                                       -3-

<PAGE>

9)  Any notice or demand, under the terms of this Agreement or under the status,
which must or may be given or made by a party hereto shall be made in writing
and shall be delivered by hand or by certified mail, return receipt, addressed
to the respective parties as follows:

       TO OPERATOR:              Bledsoe Telephone Cooperative Corporation, Inc.
                                 Gregory L. Anderson
                                 P.O. Box 609
                                 203 Cumberland Avenue
                                 Pikeville, TN  37367

       TO VENDOR:                Chattanooga Regional Interconnect
                                 Douglas H. Fisher
                                 5959 Shallowford Rd Suite 309
                                 Chattanooga, Tennessee
                                                           37421

10) Vendor may not sell advertising time or transmit advertising messages on
those channels of Operator's cable system which transmit signal of television
broadcast stations. However, advertising time may be sold by Vendor and
advertising messages transmitted on Operator's cable system on the Channels
listed on Attachment E which are carrying transmissions that are designed and
intended for insertion of advertising messages and or programming.

                                       -4-

<PAGE>

11) Attached hereto, and made an integral part hereof, are the following
documents:

    (1)  Attachment A - List of Operator's franchises.
    (2)  Attachment B - Equipment to be installed by Vendor.
    (3)  Attachment C - Amount and method of payment.
    (4)  Attachment D - Term of this Agreement.
    (5)  Attachment E - Operator's channels with advertising availabilities
         to be sold by Vendor.

12) This agreement and the attachments hereto set forth the entire
understanding of the parties and oral or written communications not contained in
this Agreement are of no force or effect. This Agreement will be construed under
the laws of the State of Tennessee.

IN WITNESS WHEREOF, the undersigned parties have executed this Agreement on the
day and year first above written.

In the presence of:

                           Bledsoe Telephone Cooperative Corporation, Inc.
/s/ NELL S. MORGAN         By: /s/ JOHN LEE DOWNEY
------------------             -------------------
SEC.                       Its: PRESIDENT
------------------             -------------------

                           CHATTANOOGA REGIONAL INTERCONNECT
/s/ BELINDA PHILLIPS       By: /s/ DOUGLAS H. FISHER
--------------------           ---------------------

NOTARY                     Its: PRESIDENT
--------------------           ---------------------
My commission expires March 21, 2001.

                                       -5-

<PAGE>

                                  ATTACHMENT A

                          LIST OF OPERATOR'S FRANCHISES

                          Sequatchie County, Tennessee
                            Bledsoe County, Tennessee
                           Van Buren County, Tennessee
                          Cumberland County, Tennessee

                                       -6-

<PAGE>

                                  ATTACHMENT B

                       EQUIPMENT TO BE INSTALLED BY VENDOR

    Vendor hereby agrees to install sufficient equipment in the headend covered
by this agreement to automatically insert local commercials on channels for
which market demand levels dictate equipment be installed as mutually agreed.
Any substandard equipment in headends at the time of this contract will be
brought up to standard within six months of the date of this contract.

    In addition, Vendor shall maintain sufficient production equipment in it's
Operations Center to produce all commercials sold by it's staff within one
hundred (100) mile radius of said Operations center.

    Vendor reserves the right to add, delete, or rearrange equipment
configuration as market conditions may dictate the necessity thereof as mutually
agreed.

    Vendor agrees to use a cuing acceptable to Operator.

                                       -7-

<PAGE>

                                  ATTACHMENT C

                          AMOUNT AND METHOD OF PAYMENT

Vendor will pay operator fees quarterly based on the following schedule:

    Year 1 -          May 15, 1997 thru May 15, 1998              16%
    Year 2 -          May 15, 1998 thru May 15, 1999              18%
    Year 3 -          May 15, 1999 thru May 15, 2000              20%
    Year 4 -          May 15, 2000 thru May 15, 2001              22%
    Year 5 -          May 15, 2001 thru May 15, 2002              24%
    Year 6 -          May 15, 2002 thru May 15, 2003              26%

Operator agrees to allow Vendor a bad debt ratio of 5% annually in its
calculation of annual operator fees.

                                       -8-

<PAGE>

                                  ATTACHMENT D

                               TERMS OF AGREEMENT

This contract shall be for an initial period of (6) six years, commencing on May
15, 1997.

This Agreement may be terminated by thirty (30) days written notice by the
Operator upon any one of the following occurrences:

    - A petition in bankruptcy or for reorganization is filed by or against
Vendor under any Bankruptcy Act now or hereafter in force; Vendor makes an
assignment for the benefit of it creditors; a receiver, trustee, liquidator or
custodian is appointed for all or a substantial part of Vendor's property and
the order of appointment is not vacated within thirty (30) days; Vendor assigns
or encumbers this Agreement contrary to the terms hereof; all or a substantial
part of Vendor's property is sequestered and the order of sequestration is not
vacated within thirty (30) days.

    - Breach of terms of contract.

    - Violation of Operator's Franchise Agreement.

    - Upon Vendor's failure to meet payment within thirty (30) days of the close
of each quarter.

    - In the event a notice to cancel is submitted by the Operator to Vendor
within cause stated, Vendor shall have thirty (30) days to correct the cause for
cancellation thereby voiding said cancellation notice; otherwise, cancellation
shall become effective immediately.

                                       -9-

<PAGE>

                                  ATTACHMENT E

               OPERATOR'S CHANNELS WITH ADVERTISING AVAILABILITIES

A.  PROGRAMMING SERVICE - ADVERTISING AVAILABILITIES.

    Operator grants Vendor the right to sell, at rates developed by Vendor, the
local commercial availabilities on ESPN, CNN, Headlines News, TNT, USA,
Discovery, SportsSouth, Family, VH1, E, Home and Garden, MTV, A&E and Nick cable
channels carried on the cable television system designated by the Operator. If
after twelve (12) months of operations, Vendor had not utilize all of the
available avails on the channels at their disposal, then Vendor, after giving a
thirty (30) day written notice, may use these avails for its own cross
promotional uses, i.e., bonus spots; however, Vendor shall retain the rights to
Commercial Advertising Sales to "outside" parties. Those avails not sold by
Vendor will be made available to Operator for its own use. Operator retains the
right to sell any type of advertising it wishes on any other network or channel
not mentioned above.

B.  RESERVATION OF AVAILABILITIES BY OPERATOR

    Vendor will provide twenty percent (25%) of the avails to Operator for its
cross promotion purposes. Such avails shall be made available in all day parts
on an equal basis.

    Operator reserves the right to have a third party vendor, such as NuStar,
use all avails to which it has rights under paragraphs A and B above for cross
promotional purposes.

C.  ADDITIONAL CHANNELS - PROGRAMMING

    If at any time after the effective date of this Agreement, Operator is or
shall begin carrying a satellite delivered cable television programming service
not listed in above on which there is available time for local insertion of
advertisements, Operator and Vendor will negotiate for the inclusion of such
programming service subject to new or additional terms to be negotiated by the
parties.

                                      -10-

<PAGE>

                            ATTACHMENT E (CONTINUED)

D.  Vendor agrees to include the name "Bledsoe Telephone Co-Op" or as Operator
designates in all promotional commercials, promoting Vendor's ad sales business
on Operator's systems. Vendor agrees to limit such promotional announcements to
a reasonable number.

                                      -11-

<PAGE>

                            CABLE AD SALES AGREEMENT

THIS AGREEMENT made and entered into this first day of August, 1996 between
Chattanooga Regional Interconnect of Chattanooga, Tennessee, hereinafter
referred to as "Vendor", and Helicon Corporation of Englewood Cliffs, New Jersey
hereinafter referred to as "Operator".

                                   WITNESSETH

WHEREAS, Operator owns and operates cable television systems, serving portions
of Marion County, Tn, Rhea County, Tn, Dade County, Ga., Chattooga County, Ga.
and Murray County, Ga. and subject to franchises listed in Attachment A hereto.

WHEREAS, Vendor desires to acquire the exclusive right to sell advertising time,
where and when available, on those channels of Operator's system which are
specified on Attachment E hereto.

NOW, THEREFORE, in consideration of the premises and of the exchange of mutual
promise, covenants, representations and warranties herein contained, receipt of
which are specifically acknowledged by the parties hereto, said parties
intending to be logically bound thereby, do hereby covenant and agree as
follows:

1)  Operator does hereby agree that Vendor subject to the terms and conditions
hereinafter set forth, will have the exclusive right to sell advertising time on
specified cable television channels of Operator that are now, or will be in the
future, feasible or available for such use as more specifically delineated
herein.

2)  Vendor shall maintain all equipment necessary to produce and deliver signals
to the headend of Operator's system for the purpose of transmitting advertising
messages to Operator's subscribers, said equipment being described in Attachment
B hereto. Operator reserves right to charge Vendor at the rate of $20.00 per
hour in the event Operator employees preform work on behalf of the Vendor.
Operator will make available at its headend such space as is necessary for the
installation and operation of such equipment needed to interface with Operator's
cable system. Vendor shall not maintain or otherwise be responsible for any
equipment or facilities of Operator that are required to the headend for
transmitting the said signal to Operator's subscribers.

<PAGE>

       Operator will use best efforts to cause the said signals to be
transmitted to its subscribers without degradation, and in a manner to achieve
the same quality as the signals transmitted on the other channels of the cable
systems. Operator shall not maintain or otherwise be responsible for any
equipment or facilities necessary to produce and deliver signals to the headend
of Operator's system for the purpose of transmitting advertising messages to
Operator's subscribers as generally specified in Attachment B. Vendor will cause
said advertising messages to be delivered to Operator's headend without
degradation and in a manner to achieve the same quality as the signals
transmitted on channel of the cable systems.

3)  Any failure, interruption or degradation in transmitting said signals, in
which advertising messages have been or may be inserted, either in whole or in
part, resulting from technical difficulties or failure of any of Operator's
equipment, will be promptly brought to the attention of Vendor and shall be
corrected by Operator as soon as reasonably possible. Vendor specifically
understands the Operator at its option may deliver some or all of the said
signals as part of a tier service or scrambled and agrees that such tiering or
scrambling shall not be considered degradation of signal quality as compared to
transmission of other system channels. Any failure, interruption or degradation
in inserted messages, either whole or in part resulting from technical
difficulties or failure of any of Vendor's equipment, will promptly be brought
to the attention of Vendor and shall be corrected by Vendor within three (3)
days.

4)  Vendor warrants that the advertising sold will not contain any libelous,
slanderous, obscene or defamatory material, and will not, when exhibited by
operator, violate or infringe upon the rights of any person, firm, or
corporation, or any other party, or give rise to any adverse claim with respect
to any common law or any other right (including, without limitation, any
copyright, literacy, trademark, contractual, dramatic or motion picture right,
or right of privacy of any person, firm, corporation, or any other party.)
Vendor further warrants that the advertising sold by Vendor will not violate or
infringe upon any music performance and/or music synchronization rights. The
Operator shall have the absolute right censor any commercial with content that
it deems to be unsuitable.

    Vendor agrees not to air commercials promoting Direct TV, Primestar, USSB,
Alphastar, Echostar, or any other competitive distributors advertisements.

                                       -2-

<PAGE>

5)  Vendor shall indemnify and hold Operator harmless from and against any and
all claims, damage or liability, including counsel fees and the cost and expense
of any legal action, from libel, slander, invasion of privacy, improper trade
practices, illegal competition, infringement or copyright or licenses, music
performance and/or music synchronization rights, or any other wrongful conduct
as well as any violation of laws or regulations, Federal, state or local,
resulting from the transmission of material supplied or produced by Vendor.

6)  Operator shall indemnify and hold Vendor harmless from and against any and
all claims, damage or liability, including counsel fees and the cost and expense
of any legal action, for libel, slander, invasion of privacy, improper trade
practices, illegal competition, infringement of trademark or trade name, unfair
competition, infringement of copyright or licenses, or any other wrongful
conduct, as well as any violation of laws or regulations, Federal, state or
local, resulting from the transmission of material supplied or produced by
Operator.

7)  This agreement is subject to the terms of the licenses held by Operator and
to all applicable Federal, state and municipal laws, regulations and decisions,
either presently in existence or enacted, make or enforced hereafter, including
regulations and actions of all governmental administrative agencies and
commissions having jurisdiction.

8)  Operator and Vendor recognize and agree that either Vendor or Operator may
sell it business and any and all assets of said business at any time during the
term of this Agreement. The parties agree that in the event Vendor desires to
sell its business or any part thereof, written notice thereof reciting all terms
and conditions of the offer to sell and buy, including identifications of the
parties involved, will be given to Operator and Operator shall, for the period
of thirty (30) days, have the option to purchase the business or assets from
Vendor at the price and under the same conditions which said business or assets
are finally offered to a third party. Operator's option as described above,
shall, at Operator's sole discretion, relate to Vendor's entire business or any
portion thereof. Upon Operator's failure to exercise its option in writing
within thirty (30) days after receipt of a written notice from Vendor of an
offer to sell by Vendor, Vendor may sell the business or assets to such third
party.

    Vendor will have no such right as to Operator only upon receipt of written
acceptance from Buyer of Operator's assets. However, Operator agrees that the
provisions of this contract will be binding on any assigns or successors in
interest of Operator. Vendor likewise agrees that the covenants and conditions
contained in this Agreement shall bind its successors in interest or assigns.
Operator's right of first refusal shall not be valid on any sale of partial
interest made through the Private Placement Sale of Stock.

                                       -3-

<PAGE>

9)  Any notice or demand, under the terms of this Agreement or under the status,
which must or may be given or made by a party hereto shall be made in writing
and shall be delivered by hand or by certified mail, return receipt, addressed
to the respective parties as follows:

    TO OPERATOR:        Helicon Corporation
                        David M. Baum
                        630 Palisade Avenue
                        Englewood Cliffs, N.J.
                                              07632

                        With copies to Tom Kalisz and Jack Corley,
                        in the Jasper, TN office.

    TO VENDOR:          Chattanooga Regional Interconnect
                        Douglas H. Fisher
                        5959 Shallowford Rd Suite 309
                        Chattanooga, Tennessee
                                              37421

10) Vendor may not sell advertising time or transmit advertising messages on
those channels of Operator's cable system which transmit signal of television
broadcast stations. However, advertising time may be sold by Vendor and
advertising messages transmitted on Operator's cable system on the Channels
listed on Attachment E which are carrying transmissions that are designed and
intended for insertion of advertising messages and or programming.

                                       -4-

<PAGE>

11) Attached hereto, and made an integral part hereof, are the following
documents:

    (1)  Attachment A - List of Operator's franchises.
    (2)  Attachment B - Equipment to be installed by Vendor.
    (3)  Attachment C - Amount and method of payment.
    (4)  Attachment D - Term of this Agreement.
    (5)  Attachment E - Operator's channels with advertising availabilities
         to be sold by Vendor.

12) This agreement and the attachments hereto set forth the entire understanding
of the parties and oral or written communications not contained in this
Agreement are of no force or effect. This Agreement will be construed under the
laws of the State of Tennessee.

IN WITNESS WHEREOF, the undersigned parties have executed this Agreement on the
day and year first above written.

In the presence of:

                                    HELICON CORPORATION

    8/2/96                     By:  /s/ DAVID M. BAUM
---------------------------         ----------------------

                               Its: V.P. OPERATIONS
---------------------------         ----------------------

                                    CHATTANOOGA REGIONAL INTERCONNECT

                               By:  /s/ DOUGLAS H. FISHER
---------------------------         ----------------------

                               Its: PRESIDENT
---------------------------         ----------------------

                                       -5-

<PAGE>

                                  ATTACHMENT A

                          LIST OF OPERATOR'S FRANCHISES

                            Marion County, Tennessee
                             Rhea County, Tennessee
                              Dade County, Georgia
                            Chattooga County, Georgia
                             Murray County, Georgia

                                       -6-

<PAGE>

                                  ATTACHMENT B

                       EQUIPMENT TO BE INSTALLED BY VENDOR

    Vendor hereby agrees to install sufficient equipment in the headend covered
by this agreement to automatically insert local commercials on channels for
which market demand levels dictate equipment be installed as mutually agreed.
Any substandard equipment in headends at the time of this contract will be
brought up to standard within six months of the date of this contract.

    In addition, Vendor shall maintain sufficient production equipment in it's
Operations Center to produce all commercials sold by it's staff within one
hundred (100) mile radius of said Operations center.

    Vendor reserves the right to add, delete, or rearrange equipment
configuration as market conditions may dictate the necessity thereof as mutually
agreed.

    Vendor agrees to use a cuing acceptable to Operator.

    Vendor agrees that it will produce on behalf of Operator, at a credit of .50
per sub per year charge and as requested by Operator, commercials advertising
the Operator's services or promotions.

                                       -7-

<PAGE>

                                  ATTACHMENT C

                          AMOUNT AND METHOD OF PAYMENT

    Vendor agrees to compensate Operator at the time of execution of this
contract at the rate of $1.00 per sub, per year. At the conclusion of each year,
during a "reconciliation period", any operator fees unpaid at that time will be
drawn against the up front $1.00 per subscriber, per year charge. Further, as
Operator makes acquisitions within the Vendors market place an additional $1.00
per subscriber, per year, per additional subscriber acquired, Vendor will make
another "up front" payment.

    Vendor agrees that at any point the "up front" proceeds draw below
$10,000.00, vendor will refurbish fund at the rate of .50 per subscriber.

    Minimum monthly fees will be paid to Operator by Vendor at the rate of 2.70
per subscriber, per year. Minimum monthly fees will be paid within 30 days of
the close of previous months business. The rate of minimum monthly payment will
be reviewed at the conclusion of a nine month period from the date of this
contract. At the time of review a formula of the following will be used to
calculate future minimum payments.

    Nine months net collected revenue averaged to a monthly sum, less 20%,
multiplied by the appropriate rate of Operator fees. Year 3 minimum will be year
2 + 15%. Year 4 will be year 3 + 15%. Year 5 will be year 4 + 15%.

    Annual Operator fees will be calculated at the following schedule:

    Year 1 -          August 1, 1996 thru July 31, 1997           28%
    Year 2 -          August 1, 1997 thru July 31, 1998           29%
    Year 3 -          August 1, 1998 thru July 31, 1999           32%
    Year 4 -          August 1, 1999 thru July 31, 2000           34%
    Year 5 -          August 1, 2000 thru July 31, 2001           36%

    Operator agrees to allow Vendor a bad debt ratio of 5% annually in its
calculation of annual operator fees.

                                       -8-

<PAGE>

                                  ATTACHMENT D

                               TERMS OF AGREEMENT

    This contract shall be for an initial period of (5) five years, commencing
on August 1, 1996.

    This agreement may be terminated by thirty (30) days written notice by
Operator or Vendor upon any of the following occurrences:

    - A petition in bankruptcy or for reorganization is filed by or against
Vendor or Operator under any Bankruptcy Act now or hereafter in force; Vendor or
Operator makes an assignment for the benefit of it creditors; a receiver,
trustee, liquidator or custodian is appointed for all or a substantial part of
vendor's property and the order of appointment is not vacated within thirty (30)
days; Vendor assigns or encumbers this agreement contrary to the terms hereof;
all or a substantial part of vendor or operators property is sequestered and the
order of sequestration is not vacated within thirty (30) days.

    - Breach of terms of contract.

    - Violation of Operator's Franchise Agreement.

    - Upon Vendor's failure to meet the monthly guaranteed payment within thirty
(30) days of the fifteenth of each month.

    - In the event a notice to cancel is submitted by the Operator or Vendor
within cause stated, Operator or Vendor shall have thirty (30) days to correct
the cause for cancellation thereby voiding said cancellation notice; otherwise,
cancellation shall become effective immediately.

                                       -9-

<PAGE>

                                  ATTACHMENT E

               OPERATOR'S CHANNELS WITH ADVERTISING AVAILABILITIES

A.  PROGRAMMING SERVICE - ADVERTISING AVAILABILITIES.

    Operator grants Vendor the right to sell, at rates developed by Vendor, the
local commercial availabilities on ESPN, CNN, Headlines News, TNT, USA,
Discovery, SportsSouth, Family, VH1, E, Home and Garden, MTV, A&E and Nick cable
channels carried on the cable television system designated by the Operator. If
after twelve (12) months of operations, Vendor had not utilize all of the
available avails on the channels at their disposal, then Vendor, after giving a
thirty (30) day written notice, may use these avails for its own cross
promotional uses, i.e., bonus spots; however, Vendor shall retain the rights to
Commercial Advertising Sales to "outside" parties. Those avails not sold by
Vendor will be made available to Operator for its own use. Operator retains the
right to sell any type of advertising it wishes on any other network or channel
not mentioned above.

B.  RESERVATION OF AVAILABILITIES BY OPERATOR

    Vendor will provide twenty percent (25%) of the avails to Operator for its
cross promotion purposes. Such avails shall be made available in all day parts
on an equal basis. Additionally, Vendor will provide production services for
special events as agreed upon by Vendor and Operator.

    Operator reserves the right to have a third party vendor, such as NuStar,
use all avails to which it has rights under paragraphs A and B above for cross
promotional purposes.

C.  ADDITIONAL CHANNELS - PROGRAMMING

    If at any time after the effective date of this Agreement, Operator is or
shall begin carrying a satellite delivered cable television programming service
not listed in above on which there is available time for local insertion of
advertisements, Operator and Vendor will negotiate for the inclusion of such
programming service subject to new or additional terms to be negotiated by the
parties.

                                      -10-

<PAGE>

                            ATTACHMENT E (CONTINUED)

D.  Vendor agrees to include the name "Helicon Cablevision" or as Operator
designates in all promotional commercials, promoting Vendor's ad sales business
on Operator's systems. Vendor agrees to limit such promotional announcements to
a reasonable number.

                                      -11-

<PAGE>

                                ADVERTISING SALES

                            REPRESENTATIVE AGREEMENT

AGREEMENT made this 1st day of August, 1994 by and between Century Alabama
Corp., a corporation organized and existing under the laws of the State of
Delaware with offices at 613 Gault Avenue North, Fort Payne, AL 35967,
("Client") and Chattanooga Regional Interconnect, Inc., a corporation organized
and existing under the laws of the State of Tennessee with offices at 5600
Brainerd Road, Suite G-30, Chattanooga, TN 37411 ("Representative").

WHEREAS, Client owns and/or operates cable television systems in the areas
listed on Schedule A annexed hereto and made a part hereof (the "Systems"); and

WHEREAS, Client has entered and may hereafter enter into agreements with various
entities to provide cable television programming services (the "Programming
Services") to subscribers certain of which Programming Services are listed on
Schedule B annexed hereto and made a part hereof (such agreements to be referred
to herein as the "Affiliation Agreements"); and

WHEREAS, pursuant to such Affiliation Agreements time has been (or will be) made
available to Client within such Programming Services for advertising by Client;
and

WHEREAS, Representative is in the business of selling various clients'
advertising time for the exhibition of commercial advertising on such various
clients' cable television systems, and of producing and of providing various
services related to cable television advertising; and

WHEREAS, Client seeks to obtain the services of Representative, including
Representative's services for the sale of Advertising Inventory (as hereinafter
defined) on the Programming Services and Representative is willing to and
desires to provide such services, subject to the terms and conditions herein set
forth.

NOW, THEREFORE, in consideration of the mutual promises set forth herein and for
other good and valuable consideration, Representative and Client mutually agree
as follows:

                                 1. DEFINITIONS

As used in the Agreement, the following terms will have the following meanings:

(a) ADVERTISING INVENTORY. Time for advertising available for sale by Client on
    the Programming Services distributed by Client on the Systems after
    reduction by Client Time (as hereinafter defined). In the event that such
    time for advertising available for sale by Client on the Programming
    Services is reduced or eliminated for a Programming Service or Services.
    Client shall not be liable to Representative or any third party for any such
    reduction or elimination at such time regardless of whether or not
    Representative has sold such time prior to such reduction or elimination.
    Advertising Inventory expressly excludes so-called broadcast over-the-air
    signals except to the extent that Client is expressly authorized to sell
    certain of such time to commercial advertisers and excluding time on certain
    local access, so-called leased channels and similar channels.

                                        1

<PAGE>

(b) CABLE RELATED SERVICE AGREEMENTS. Agreements heretofore or hereafter entered
    into by Client including Affiliation Agreements and agreements with
    suppliers of cable related services including, without limitation, shopping
    networks, cable television guide publishers and equipment suppliers which
    agreements contain provisions for the advertising, marketing and promotion
    of cable television related services within Client Time.

(c) CLIENT TIME. Time within Programming Services used by Client for (i) public
    service or public affairs announcements, (ii) advertising, promotion or
    marketing of Client's cable television programming and related services,
    (iii) programming promotions, (iv) advertising time sold by Client pursuant
    to Cable Related Service Agreements and (v) any other purposes which Client
    may deem appropriate, all in such amounts and on such terms as Client may
    determine in its sole discretion. Subject to the Terms of the Affiliation
    Agreements and the Cable Related Service Agreements and any other
    preexisting obligations of Client regarding Client Time, Client Time may be
    distributed evenly throughout the day. Client Time will in no event be less
    than 25% (excluding unsold Advertising Inventory) of all time available for
    sale of the Advertising Inventory on the Programming Services. All revenues
    derived from the sale of Client Time will be and remain the sole property of
    Client.

(d) GROSS REVENUES. Total gross revenues billed (whether or not collected),
    charged, collected, or received or in any manner gained or derived by
    Representative during the Term for the sale of Advertising Inventory, or for
    consulting services or any other act service or employment done as part of
    or in connection with this agreement. Gross Revenues will also include any
    such act, service or employment by Representative for which a charge is made
    or credit allowed, barter or trade received, including all receipts, cash,
    credits and property of any kind or nature, any amount for which a credit is
    allowed by the advertiser to Representative without any deduction therefrom
    on account of the cost of the service rendered, property sold, materials
    used, labor of service cost, interest paid or payable, losses or any other
    expense whatsoever. Any engagement of any third party advertising
    representative as described in subparagraph 2(b), will diminish Gross
    Revenues upon which Client's Percentage is based, not to exceed fifteen
    percent (15%) and only when Representative furnishes to Client written
    evidence that there has been a third party advertising representative. Any
    charge by third party representative in excess of fifteen percent (15%) will
    be the obligation of Representative, with the exception that Representative
    may, in addition to standard advertising agency discounts (15%) deduct fair,
    actual commissions not in excess of thirty percent (30%) of
    national/regional rep firms (included within Schedule C "The
    Regional/National Rep Firms" annexed hereto and which may be updated from
    time to time with written approval by both parties), which will also
    diminish Gross Revenues upon which Client's percentage are based, but only
    when Representative furnishes to Client written evidence of the engagement
    of any such firm and amount of such commission charged by such firm and paid
    by Representative, unless otherwise approved in writing by Client.

                                        2

<PAGE>

(e) TERM. As used in this Agreement, the Term will mean the period of time
    commencing June 1, 1994 and continuing in full force and effect and ending
    May 31, 1997 unless sooner terminated in accordance with this Agreement.

                        2. APPOINTMENT OF REPRESENTATIVE

(a) SCOPE. Subject to the restrictions contained in this Agreement, (i) SALE OF
    ADVERTISING. Client hereby appoints Representative as an advertising
    representative for the sale of the Advertising Inventory on the Systems for
    the Term. (ii) INCREMENTAL REPRESENTATION AND SALES. During the first 18
    months of the Term Representative will sell and insert Advertising Inventory
    on 4 Programming Services approved by Client for insertion of Advertising
    Inventory and listed on Schedule B. At the commencement of the 19th month of
    the Term Representative will use its best efforts to maximize the sale of
    Advertising Inventory on 4 additional Programming Services approved by
    Client and added to Schedule B by a written amendment. Beginning on such
    respective commencement dates and at all times thereafter throughout the
    Term Representative will sell Advertising Inventory on such approved
    Programming Services. Representative may add or delete certain Programming
    Services from Schedule B only with Client's prior written approval. (iii)
    PRODUCTION, CONSULTATION AND VARIOUS OTHER SERVICES. As further incentive
    for Client to enter into this Agreement, Representative agrees to provide
    Client with various services, including but not limited to, production
    services and agrees that it will make and complete on behalf of Client, free
    of charge, a minimum of 1 distinct commercial(s) per month (each commercial
    to be 30 seconds in duration) to be used for any purpose Client deems
    appropriate. Such commercials will not be considered distinct for purposes
    of this agreement due to the Representative's use of distinct audio and/or
    video tags (as such term is known and used in the advertising industry) on
    similar or the same commercials. Said commercials will become the sole
    property of Client. If in any month, such minimum of 1 commercial(s) is/are
    not made and completed by Representative on behalf of Client, Client will
    have the right to require Representative to make and complete the balance of
    such minimum of 1 commercial(s) per month in any subsequent month during the
    Term. Representative will not be required, however, to produce any more than
    6 of such carry over commercials in any one subsequent month. However,
    Client will not be responsible for and Representative will be solely
    responsible for, payment of any in house talent fees, residuals and all
    other costs and fees in connection with the production of such commercials.
    (iv) NATURE OF RELATIONSHIP. Client and Representative intend that
    Representative be an independent contractor and Representative will have no
    authority to bind Client by contract or otherwise. Representative accepts
    such appointment and agrees to use its best efforts in the sale of
    Advertising Inventory. (b) THIRD PARTY ADVERTISING REPRESENTATIVE.
    Representative agrees to provide sufficient personnel to enable
    Representative to maximize the revenues from the sale of the Advertising
    Inventory and to fulfill all of Representative's obligations contained
    herein. Such efforts may include the engagement of a third party advertising
    representative, subject to the terms and conditions hereof, provided that
    any such engagement will be subject to the prior written approval of Client
    which approval Client may withhold in its sole discretion.

                                        3

<PAGE>

(c) CLIENT'S RESERVATION OF RIGHT TO SELL. Client retains and reserves to itself
    all rights not expressly granted to Representative herein including but not
    limited to the exclusive right to sell or trade Client Time and to enter
    into Cable Related Service Agreements. Representative agrees to notify
    suppliers of cable television programming and other cable related services
    wishing to buy Advertising Inventory on the Systems that Representative does
    not have the right to sell such advertising time and that such advertisers
    should deal directly with Client. Representative agrees to provide any such
    suppliers with Client's address, telephone number and contact for such
    inquiry. Representative will promptly notify Client of each such inquiry.

(d) INSERTION OF CLIENT MATERIALS. All announcements, advertising, promotions
    and other uses of the Client Time are referred to as "Client Materials."
    Client will deliver taped copies of any Client Material to Representative
    and Representative will integrate such Client Material into its materials
    for insertion on Programming Services and times designated by Client. If
    such taped copies are not compatible with the Insertion Equipment,
    Representative will, at its expense, prepare compatible taped copies.

(e) UNSOLD ADVERTISING INVENTORY. Representative agrees to utilize all unsold
    Advertising Inventory as Client Time by insertion of Client Materials at no
    cost to Client.

                           3. ADVERTISING GUIDELINES

(a) CLIENT'S POLICIES. Representative agrees to comply with all of Client's
    policies and directions. Representative shall submit to Client any sales and
    marketing materials it wishes to use and Client will have the right to
    approve all sales and marketing materials created or proposed for use by
    Representative before they are distributed.

(b) AFFILIATION AGREEMENTS. Representative shall comply with all terms and
    restrictions contained in Client's various Affiliation Agreements. In no
    event will Representative sell any Advertising Inventory for advertising by
    person, firms or corporations competitive with the Programming Service
    within which such advertising is to be inserted.

(c) SCHEDULING OF CLIENT TIME. Representative's rights will be subject to and
    will accommodate the time requirements, designations and scheduling of
    Client Time. Representative agrees that all Client Materials will be run
    correctly and as required either by Client and/or Cable Related Service
    Agreements and Representative agrees to provide Client with logs regarding
    all Advertising Inventory run by Representative and an affidavit regarding
    the accuracy of such run. In the event the sale of Advertising Inventory,
    Client Time and the time requests under Cable Related Service Agreements
    result in over-booking of particular time slots Representative and Client
    will attempt to reach a mutually satisfactory resolution of the issue, but
    in the event resolution cannot be reached, Client Time will have priority.

                          4. PRODUCTION OF ADVERTISING

(a) PERSONNEL/TALENT. Representative agrees to maintain, or make arrangements
    for, the necessary production personnel and equipment to produce
    high-quality television commercials and will offer such production services
    to

                                        4

<PAGE>

    potential advertisers at reasonable costs. Client will not be responsible
    for and Representative will be solely responsible for production of said
    commercials, including without limitation, payment of any talent fees,
    residuals, and all other costs and fees in connection with the production of
    such commercials.

(b) QUALITY. Representative represents that all commercials produced or used for
    the purposes of this Agreement will be of broadcast quality, in good taste
    and will accord with the requirements contained herein. In no event will any
    appeals for funds be aired nor will there by an advertising of products or
    services which are unacceptable under the advertising guidelines of the
    National Association of Broadcasters which were in effect immediately prior
    to the time such guidelines ceased to be effective unless agreed to by
    Client in writing in its sole discretion. Further, any and all commercials
    will conform to the standards and restrictions of the Programming Services
    on which they will be cablecast. The standards described above in this
    paragraph 4(b) will hereinafter be referred to as the "Quality Standards".
    Client will have a reasonable opportunity, to review all proposed
    advertising and will have the right to reject any advertising it deems to be
    objectionable in whole or in part, but Client will not be responsible for
    the content of any commercials despite the fact that it may have reviewed
    same and not rejected same or not found same to be objectionable.

                                5. SERVICE MARKS

Client grants to Representative, during the Term, a limited license to utilize
any and all service marks of Client which Client uses to promote the Systems and
to the extent Client has the right to do so, the service marks of Programming
Services in which Advertising Inventory is available (both of which are referred
to as the "Marks") in furtherance of Representative's obligations pursuant to
this Agreement. Any such use of the Marks will be subject to Client's
instructions. Representative agrees to provide Client with examples of any and
all materials incorporating use of the Marks prior to such use by
Representative. Client will have ten (10) business days subsequent to such
notice to either approve or disapprove of such use of the Marks by
Representative. Representative acknowledges that Representative will not acquire
any proprietary rights in any Marks by reason of this Agreement or otherwise.

        6. REPRESENTATIVE'S AGREEMENTS FOR SALE OF ADVERTISING INVENTORY

Representative agrees that all agreements for the sale of Advertising Inventory
will be in writing and will include the following provisions:

(a) it is advertiser's responsibility to provide to Representative all materials
    necessary for the cablecast of the advertisement a reasonable period of time
    in advance of the scheduled cablecast;

(b) the advertiser will be fully responsible for the content of all advertising
    material submitted for the exhibition over the System will provide proof of
    insurance and will indemnify Client in the event the cablecast of such
    material violates any law, rule or regulation or infringes the rights of
    third parties in any way;

                                        5

<PAGE>

(c) that Client is not responsible for any errors or omissions in or of the
    advertising or for the payment of any fees, expenses or royalties with
    respect to the advertisements and the materials contained therein; and

(d) that Client will have the right to reject any and all advertising which, in
    the opinion of Client, does not meet the standards Client has set for
    advertising over the System, is unlawful or otherwise inappropriate.

(e) Representative is not affiliated with and is not the agent of Client and is
    not authorized to bind Client. In the event of termination of the Agreement
    between Representative and Client, the Agreement between Representative and
    the advertiser will automatically terminate. In such event, Representative
    will return to advertiser any amounts paid to Representative by advertiser
    for services not performed by Representative and not directed by Client to
    be performed by Representative subsequent to the termination of the
    agreement between Client and Representative.

                                7. DISTRIBUTION

(a) ADVERTISING MATERIALS. Advertisers will be responsible for delivering
    advertising materials. All materials will be in a format compatible with the
    Insertion Equipment and such materials will meet Client's Quality Standards
    as set forth in paragraph 4(b) for material disseminated over the Systems.
    Representative will be responsible for the proper insertion of all
    advertising materials on the proper program services and at the scheduled
    time (including without limitation insertion of all Client Materials). All
    Advertising Materials will be the property of the Advertiser during the Term
    and subsequent to the expiration of this Agreement.

(b) SCHEDULING. In the event the Systems do not function so that an
    advertisement may be disseminated over the Systems at a particular scheduled
    time, other than by reason of act of omission or commission of an advertiser
    or an advertiser's agent, Representative or a third party, Client will
    cooperate with Representative to assure that the particular advertiser may
    be offered a "make good" of the commercial by Representative during the
    calendar period ordered by the advertiser, it being understood and agreed
    that Client will not be liable to Representative or to any customer, or
    client of Representative or to any advertiser or agency of any advertiser
    for any failure by Client to provide signals to that commercials may be
    distributed in the Systems whether because of the breakdown of any System or
    for any reason except, with respect to Representative, for the gross
    negligence or willful misconduct of Client.

(c) AFFIDAVITS. Within 15 days after the end of each broadcast month,
    Representative will supply any and all affidavits to advertisers, certifying
    the dissemination of advertising.

(d) CHANNEL POSITION. Client reserves the right from time-to-time in its
    discretion to add Programming Services to or delete Programming Services
    from the Systems, and to move Programming Services to different channel
    positions and to tier or re-tier the System's channel line-up. Client will
    notify Representative of any such changes.

                                        6
<PAGE>
                                   8. PAYMENTS

(a) RATE CARD. Representative will formulate a standard rate card for the
    Advertising Inventory. Such rate card will be updated and repriced once
    every six months during the Term. Such updating and re-pricing may be the
    same as that in effect immediately preceding such updating and re-pricing.
    Upon execution of this Agreement and upon each updating and re-pricing,
    Representative will submit the Rate Card to Client for written approval,
    which approval Client may withhold in its sole discretion. Representatives
    will not deviate from such Rate Card to Client for written approval, which
    approval Client may withhold in its safe discretion. Representative agrees
    it will not reduce the net effective rate of the Advertising Inventory as
    set forth on the Rate Card in any manner whatsoever. In particular
    Representative agrees it will not sell or provide so called "bonus" spots or
    "blind" spots of the Advertising Inventory without Client's prior written
    approval. The sale of bonus spots occurs when certain spots of Advertising
    Inventory are sold at the Rate Card Rate and additional or "bonus" spots are
    given in the purchaser at a reduced cost or at no extra cost. The sale of
    blind spots occurs when certain spots of Advertising Inventory are sold at
    the rate Card Rate and additional or 'blind" spots are given to the
    purchaser at no extra cost and/or without the purchaser's knowledge.

(b) BILLING AND REPORTING. Representative will be responsible for billing all
    advertisers for all amounts due Representative. With regard to the portion
    of Gross Revenues representing the amount to be billed to advertisers for
    purchasing Advertising Inventory, such amount will not be calculated on
    advertising rates less than those specified on the rate Card unless
    expressly agreed to by Client in writing. Such billing will be made on a
    monthly basis and will cover all Gross Revenues for each System during the
    immediately preceding calendar month. On the 15th day of each month, during
    the term, Representative will provide Client with an accounting of all Gross
    Revenues for the immediately preceding calendar month. Such accounting will
    itemize all amounts billed, advertiser by advertiser, will separate barter
    from cash sales, and will be certified as to accuracy and completeness by
    Representative's Chief Financial Officer. At the same time that
    Representative provides Client with such accounting, Representative will
    also provide Client with (i) copies of all invoices to advertisers and/or
    their agencies or representatives during the immediately preceding calendar
    month, (ii) a written description of the insertion tape for each network for
    such preceding calendar month as referred to in section 3(c) hereof, (iii) a
    copy and a summary of each contract entered into by Representative during
    the immediately preceding calendar month pursuant to section 6 hereof and
    (iv) a summary by time of day and Programming Service of all Client
    Materials and Client Time utilized by Representative during the immediately
    preceding calendar month.

(c) CLIENT'S PERCENTAGE. Together with the Reports described above,
    Representative will remit to Client, in United States Dollars, the following
    percentages of the aggregate of Gross Revenues ("Client's Percentage").

                                       7
<PAGE>

                                                  CLIENT'S PERCENTAGE OF
            YEAR OF THE TERM                          GROSS REVENUES

                  First                                     28%
                  Second                                    32-1/2%
                  Third                                     37%

    Acceptance of any payment by Client will not be deemed a waiver of any
    provision of this Agreement.

(d) BARTER. Any and all barter advertising transactions (that is, arrangements
    pursuant to which an advertiser barters goods or services in exchange for
    advertising time) will be subject to the prior written approval of Client,
    which Client may withhold it its sole discretion. The cash/value of the
    goods and/or services bartered, for the purposes of determining Gross
    Revenues for a particular time period, will be determined by Client at the
    time a barter transaction is approved by Client. It is understood that all
    payments to Client will be in cash and that no payment to Client will be
    made in the form of bartered merchandise .

(e) FAVORED NATIONS. Representative agrees that the guaranteed dollar value per
    subscriber as of any point in time paid to Client hereunder, shall not be
    less than that paid to any other operator of a similar cable television
    system represented by Representative. For the purposes of this paragraph, a
    similar cable television system will be a system with approximately the same
    channel capacity, member of basic subscribers, number of homes per cable
    mile and average per capita income in the community it serves. For the
    purposes of this paragraph, the guaranteed dollar value per subscriber is an
    amount equal to the aggregate value of any guaranteed payment, service or
    compensation received by such other cable television system operator from
    Representative divided by the average number of actual advertising inserted
    basic and tiered subscribers served by such other operator in the cable
    system represented by Representative. In the event that at any time during
    the Term, the guaranteed dollar value per subscriber received by any such
    other cable television system operator from Representative exceeds the
    guaranteed dollar value per subscriber paid to Client hereunder, then
    Representative agrees to pay to Client the difference between such amount
    paid to such other cable television system operator and the amount paid, to
    Client for the period of time during which such difference is payments
    exists.

(f) NO RELEASE. No acceptance by Client of any payments will be construed as a
    release from any claim Client may have for further or additional sums
    payable pursuant to this Agreement.

(g) EXPENSES. Representative will maintain its own office within each System's
    operating area and will bear all expenses in connection with the fulfillment
    of its obligation contained herein, including, without limitation, travel,
    entertainment and telephone charges. Representative will not incur any debt,
    obligation or liability of any kind, in the name of, or for, or on account
    of Client, unless specifically authorized to do so by Client. In connection
    with the commercials scheduled by Representative for the Advertising
    Inventory, whether produced by Representative or not, Client will have no
    responsibility or liability for

                                       8
<PAGE>

    any services, elements, or products performed or provided by any person,
    firm or corporation and Client will in no way be responsible or liable for
    the making of any payments to any person (including, without limitation, any
    union, guild, actor, director, performer or craftsman), all of which will be
    paid for by Representative.

                                  9. GUARANTEE

(a) GUARANTEED PAYMENT. Representative guarantees payment to Client of the
    following amounts which will be the minimum payment to be made to Client for
    each year of the Term. In the event that in the Second or Third year, such
    year's Guaranteed Payment to Client is less than ninety percent (90%) of any
    previous year's actual amount of payment to Client, then ninety percent
    (90%) of such previous year's actual amount of payment will become the
    Guaranteed Payment for such Second or Third year.

    YEAR OF THE TERM                        "GUARANTEED PAYMENT"

      First                       $2.40 per subscriber x * of subscribers
      Second                      $3.40 per subscriber x * of subscribers
      Third                       $4.40 per subscriber x * of subscribers

    In the event that the Guaranteed Payment is based upon a subscriber count
    multiplied by a dollar amount, the subscribers count for any year will be
    the number of subscribers as of the anniversary of the effective date of
    this Agreement. This number will include all subscribers who receive service
    as a result of bulk or commercial subscriber accounts.

(b) FIRST YEAR. During the first year of the Term ("First Year"), Representative
    shall make monthly payments to Client in accordance with paragraph 8(c). If
    the payments for the first six months of the First Year do not equal or
    exceed 50% of the Guaranteed Payment for the First Year, then together with
    the payment for such six month period of the first year, Representative
    shall pay Client the difference between 50% of the Guaranteed Payment for
    the First Year and the aggregate payment for the First Year does not exceed
    the Guaranteed Payment for such First Year, then on the 30th day immediately
    succeeding such First Year, Representative shall pay Client such amount
    which together with 50% of the Guaranteed Payment for such First Year shall
    be equal to the difference between the Guaranteed Payment for such First
    Year and the amounts paid to Client for such First Year and the amounts paid
    to Client for such First Year pursuant to paragraph 8.

(c) SUBSEQUENT YEARS. During the Subsequent Years of the Term (the "Subsequent
    Years" or individually a "Subsequent Year"), monthly payments shall be made
    by Representative to Client in accordance with subparagraph 8(b) and if the
    payments made or any quarter of each such Subsequent Year, do not equal or
    exceed 25% of the Guaranteed Payment for such year, then together with the
    payment for the third month of each such quarter, Representative shall pay
    Client the difference between 25% of the Guaranteed Payment for such year
    and the aggregate payments made for such quarter (the "Interim Guaranty
    Payment"). In the event the aggregate payments for each full Subsequent Year
    do not exceed the Guaranteed payments for each full Subsequent Year do not
    exceed the Guaranteed Payment for such year, then on the 15th day
    immediately succeeding each such year Representative shall pay Client such
    amount which together with

                                       9
<PAGE>

    any Interim Guaranteed Payments paid for each quarter of Subsequent Year
    shall equal the difference between the Guaranteed Payment for such
    Subsequent Year and the amounts paid to Client for such Subsequent Year
    pursuant to paragraph 8. In the event the Guaranteed Payment for any
    Subsequent Year exceeds the Payment for such year, no such excess shall be
    credited to any future year.

                       10. AUDIT AND FINANCIAL STATEMENTS

Representative agrees to maintain complete records and accounts of all
transactions in connection with the sale of the Advertising Inventory, which
records shall be prepared in accordance with generally accepted accounting
principles consistently applied. All such records and accounts shall be
maintained at Representative's office (Representative to make copy facilities
available without charge) and shall be made available for inspection and copying
from time to time by Client or its duly authorized representatives during normal
business hours upon reasonable notice for any purposes reasonably related to
this Agreement. Representative agrees to submit to Client, annually during the
Tern, a financial statement reviewed in accordance with generally accepted
auditing standards by a Certified Public Accountant including a separate report
detailing Representative's Gross Revenue and Client's Percentage of Gross
Revenues.

                             11. INSERTION EQUIPMENT

(a) UPGRADE. At Representative's expenses, Representative will upgrade all of
    Client's insertion equipment, install all required additional insertion
    equipment and in the event no such equipment exists at any System, install
    all required insertion equipment exists at any System, install all required
    insertion equipment as may be necessary to perform all of Representative's
    obligations hereunder (all of such equipment will be hereinafter referred to
    as the "Insertion Equipment"). No less than 50% of such installation and
    upgrades will be completed within 15 days from the effective date of this
    Agreement and 100% of the upgrade and installation will be completed within
    30 days from the effective date of this Agreement. The Insertion Equipment
    and the method of its installation must be approved by Client in writing
    prior to its installation. The Insertion Equipment will be like new, of
    first class quality and will be the property of Representative. Service and
    maintenance of the Insertion Equipment and installation, and upgrade costs
    of new upgraded and additional insertion equipment will be provided by and
    be Representative's sole obligation at no cost or obligation to Client. In
    the event of the termination of this Agreement, subsequent to the first
    twelve months of the term of this Agreement, title to the Insertion
    Equipment will automatically vest in Client and Client will become the sole
    owner of such equipment, which will at all times be free of all liens and
    other encumbrances. At the expiration of the Term, Client may purchase the
    Insertion Equipment from Representative at the lesser of its depreciated or
    fair market value. For the purpose of this section 11(a) depreciation shall
    be calculated on a 5-year straight-line basis.

(b) SAFETY BY-PASS SWITCH. Representative, at its sole cost, will provide a
    safety by-pass switch that will enable Client's employees to temporarily
    interrupt operation of the Insertion Equipment if deemed necessary or
    desirable by Client in its sole discretion. In the event Client in its sole
    discretion believes it necessary or desirable to use a method other than a
    safety by-pass switch to interrupt operation of the Insertion Equipment,
    Client may do so. Client will not be liable for any result of the
    interruption of the operation of the Insertion

                                       10
<PAGE>

    Equipment, whether by use of the by-pass switch or otherwise.

(c) REPRESENTATIVE'S ACCESS TO HEAD-END. Client agrees to cooperate with
    Representative to insure that Representative's employees, agents, and
    contractors will have 24 hour, seven day per week access to the Insertion
    Equipment at each Systems's head-end. Other than during normal business
    hours on business days, Client will not be required to have any employee
    present at the particular System head-end but may merely have an employee or
    other designee available on call for the purpose of providing access. Any
    compensation to be made to any such employee or designee for providing such
    access will be the obligation of Representative. In bringing employees and
    other personnel on Client's property, Representative will comply and will
    cause its employees, agents and contractors to comply with applicable
    requirements of labor unions with which Client has collective bargaining
    labor agreements. Representative agrees that ir and its agents, contractors
    and employees will only enter the System's head-end only with the prior
    approval of the manager or chief technician of the System and in the
    presence of an authorized employee of Client expressly designated for such
    purposes. Representative will provide Client with the insertion tapes
    containing the sold Advertising Inventory and Client agrees to insert such
    insertion tapes on the Programming Services through use of the Insertion
    Equipment. Client agrees to perform such insertion on behalf of
    Representative from time to time at Client's sole discretion. Representative
    further agrees to indemnify Client for any damage to equipment as set forth
    in (d) below as a result of any malfunction by such insertion tapes or the
    Insertion Equipment except in the event that any such damage is due to any
    gross negligence by Client.

(d) DAMAGE TO EQUIPMENT. Representative hereby acknowledges that Clients
    head-end include sophisticated and expensive equipment including the Safety
    By-Pass Switch. Representative will be responsible for and will reimburse
    Client for any damage to Client, including, without limitation, damage to
    any of Client's equipment or malfunction of any of Client's equipment or
    service, including damage by Insertion Equipment interfering with or
    interrupting Client's normal signal transmission. Such reimbursement by
    Representative for any such damage will include, without limitation,
    reimbursement for overtime labor costs and reimbursements for refunds or
    credits to subscribers given as a result of such interference or
    interruption. At the end of the Term, all Insertion Equipment will be in
    good operating condition, normal wear and tear excepted.

(e) Any payments due client with respect to paragraph 11(c) and 11(d) are due
    within 30 days of invoice. Any payment received by Client later than such
    date is subject to interest as 1 1/2% per month or the maximum amount
    allowed by law, whichever is less. Acceptance of any payment by Client shall
    not be deemed a waiver of any provision of this agreement. In addition,
    Client may exercise any other available at law.

                                       11
<PAGE>

                       12. REPRESENTATIONS AND WARRANTIES

Representative warrants and represents to Client that,

(a) It has the power and authority to execute and deliver this Agreement and to
    fulfill Representative's obligations contained herein.

(b) All advertising scheduled by Representative for the Advertising Inventory,
    whether or not produced by Representative, will comply with all applicable
    laws, rules and regulations, including, without limitation, those relating
    to lotteries.

                               13. INDEMNIFICATION

(a) Representative agrees to and does hereby indemnify and hold harmless Client
    (which will be deemed to include Client, its direct and indirect
    subsidiaries and affiliates and their representative agents, employees,
    officers and directors) from and against, and agrees to reimburse Client
    with respect to, any and all losses, liabilities, costs or expenses,
    including reasonable attorney's fees and disbursements, and damages of every
    kind whatsoever (including all claims of third parties) and, incurred by
    Client by reason of, arising out of, or in connection with:

    (1)  The breach or alleged breach by Representative of any warranty or
         representation contained in this Agreement.

    (2)  Representative's performance of or failure to perform its obligations
         pursuant to this Agreement.

    (3)  The sale or scheduling of advertising by Representative.

    (4)  Advertising (and any ideas, creations and literary, musical, dramatic,
         artistic and intellectual properties contained in any such advertising
         and commercials) sold by Representative (whether or not created by
         Representative and/or an advertiser) and cablecast hereunder, a claim
         that the advertising or any element therein is libelous, slanderous,
         defamatory, obscene or indecent or which, when transmitted,
         distributed, exhibited, performed or disseminated by Client pursuant to
         this Agreement, may or will subject Client, or subjects Client to any
         liability for violation of any applicable law, rule or regulation, or
         violate, infringe upon or give rise to any claim with respect to any
         common law or other right (including, without limitation, any claim
         under copyright, trade name, trademark, contractual, dramatic,
         non-dramatic, music, motion picture, artistic, intellectual or literary
         right or right of privacy or right of publicity rights for services
         rendered, residual fees, pension and welfare payment, claim for
         royalties including copyright royalties or other right) of any person,
         firm or corporation and any advertisement created by Representative on
         behalf of an advertiser, including, without limitation, a claim for
         payment for services, elements or products performed or provided by any
         person, firm or corporation, or for any payments to any person

                                       12
<PAGE>

         (including without limitation, any uniform, guild, actor, director,
         performer or artist or craftsperson), unless such advertisement was
         created for Representative by Client or such advertisement was provided
         by Client through Cable Related Service Agreements for Client Time.

    (5)  Client's insertion of the Insertion Tapes on the Programing Services on
         behalf of Representative pursuant to 11(c) hereof.

(b) Client agrees to and does hereby indemnify and hold harmless Representative
    (which will be deemed to include Representative, its direct and indirect
    subsidiaries and affiliates and their respective agents, employees, officers
    and directors) from and against, and agrees to reimburse Representative with
    respect to, any and all loss, damage, liability, cost or expense, including
    reasonable attorney's fees and disbursements, incurred by Representative by
    reason of, arising out of, or in connection with:

   (1)   The breach or alleged breach by Client of any warranty or
         representation contained in this Agreement.

   (2)   Client's performance of or failure to perform its obligations pursuant
         to this Agreement.

                                  14. INSURANCE

(a) Representative will carry workmen's compensation and employer's liability
    insurance on all of their respective employees used in the performance of
    this Agreement, and will each have and maintain a general liability policy
    insuring operations, products, completed operations, contractual and
    independent contractors' liability in minimum bodily injury amount of
    $1,000,000 per occurrence and aggregate, $500,000 property damage per
    occurrence and aggregate, and automobile liability on all of their
    respective motor vehicles and equipment (whether all of their respective
    motor vehicles and equipment (whether owned, hired or non-owned) in minimum
    amount of $1,000,000 per person and occurrence and $500,000 per occurrence
    for property damage. Client will be named a primary party insured under
    Representative's liability policies.

(b) Representative will carry errors and omissions insurance with limits of
    $1,000,000, and will name Client as a primary insured party thereon.

(c) Representative will carry theft, vandalism, and fire and extended coverage
    insurance covering the Insertion Equipment in a principal amount equal to
    the replacement value thereof, which insurance will contain provision
    pursuant to which the carrier waives its right of subrogation against
    Client.

(d) All policies to be effected by Representative will be written with
    carrier(s) authorized to do business in the State of New York, or otherwise
    approved by Client, and will contain a provision to the effect that same may
    not be canceled or less than 30 days prior written notice

                                       13
<PAGE>

    to Client. No later than five business days prior to the commencement of the
    Term of this insurance certificates as proof of compliance with the
    requirements set forth above.

                              15. CONFIDENTIALITY

Client possesses and will develop and acquire certain confidential information,
including, but not limited to, information concerning cable television
operation, Client's policies and procedures, programming, services and
advertising. In the performance of this Agreement, Representative may have
access to such information. Representative acknowledges that this information
constitutes the proprietary property of client and that Representative will not
acquire any interest in the information. Representative agrees to maintain
absolute confidentiality regarding the confidential information both during and
subsequent to the Term, not to reproduce any materials containing confidential
information and to implement and maintain all procedures prescribed by Client
from time-to-time to prevent disclosure of the confidential information.

                                 16. TERMINATION

(a) CAUSES. Client may terminate this Agreement (i) at any time after
    Representative fails to make any payment to Client required herein for 10 or
    more days, or (ii) upon any material breach by Representative of this
    Agreement, including Representative's failure, in any year of the Term, to
    generate Gross Revenues sufficient to provide payments to Client in an
    amount equal to seventy-five percent (75%) of Representative's Guaranteed
    Payment pursuant to paragraph 8 of this Agreement. Such calculation is to be
    made irrespective of any guaranteed Payment made, or (iii) with respect to
    any franchised area within any System, if the corresponding franchise in the
    System is forfeited, surrendered, terminated or otherwise ceases to be
    effective and binding upon Client and/or the franchising authority, or (iv)
    if the system is sold or all of or a controlling interest in the issued and
    outstanding shares of client are sold or otherwise disposed of.

(b) RESULTS OF TERMINATION. In the event of any termination by Client pursuant
    to this paragraph 16, (i) Client or any third party may act as Client's
    representative to sell Advertising Inventory to any and all advertisers,
    (ii) Certain of Representative's obligations, warranties and representations
    assumed pursuant to this agreement will survive such termination. In
    particular, Representative agrees to complete any production of advertising,
    scheduling and delivery of Advertising Inventory and client Materials all as
    designated by Client. Any such obligations must be completed within the time
    specified by client which will be no longer than ninety (90) days, (iii)
    Representative will return all Advertising Materials and Client Materials to
    Client as directed by Client, (iv) Representative will return to advertisers
    any payment received by Representative from Advertisers for services not
    performed by Representative and not directed by Client to be performed by
    Representative as of the termination of this Agreement, (v) Representative's
    obligations pursuant to the following paragraphs will

                                       14
<PAGE>

    survive termination pursuant to this Paragraph 16: Paragraph 9 (b) Billing
    and Reporting, Paragraph 10 Audit and Financial Statements, Paragraph 11 (d)
    Damage to Equipment, Paragraph 12 Representations and Warranties, Paragraph
    13 Indemnification, Paragraph 14 Insurance and Paragraph 15 Confidentiality.

                                17. MISCELLANEOUS

(a) FORCE MAJEURE. Anything herein to the contrary notwithstanding neither
    Client nor Representative will be liable for any failure or delay in
    performance, or for any losses or damages arising therefrom because of an
    act of God, accident, fire, explosion, strike, labor dispute, war,
    governmental or judicial action or any other similar cause beyond their
    control.

(b) BANKRUPTCY. If Representative makes an arrangement for the benefit of
    creditors, or files a voluntary petition for bankruptcy or insolvency which
    is not discharged within sixty (60) days after such filing or seeks relief
    under any bankruptcy or insolvency law, or should a receiver by appointed
    for any or all of its property, then a default will be deemed to have
    occurred and Client, at its sole option, may terminate this Agreement
    immediately.

(c) MODIFICATION. This Agreement will not be amended, changed or modified other
    than by written instrument, signed by each of the parties hereto.

(d) ASSIGNMENT. This Agreement will not be assigned by Representative without
    the written consent of Client.

(e) NO WAIVER. No waiver of any breach of, or default under any provision of
    this Agreement will be deemed a waiver of such provision or of any
    subsequent breach or default.

(f) SEVERABILITY. If any provisions of this Agreement, as applied to any party
    or to any circumstances, will be adjudged by a court to be invalid or
    unenforceable, the same will in no way affect any other provision hereof,
    the application of such provision in any other circumstances, or the
    validity or enforceability for this Agreement. In such event the parties
    agree that the court making the determination will have the power to alter
    such provision, to the extent necessary to make the remainder of the
    provision enforceable.

(g) NOTICES. Except as otherwise provided herein, all notices, requests,
    demands, consents, directions, statements and certifications and other
    communications provided for herein will be in writing and will be mailed by
    certified or registered mail, return receipt requested, or telegraphed,
    telecopied, or delivered to the applicable party at the address indicated
    below:

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<PAGE>

        If to Client:

        c/o Century Communications Corp.
        50 Locust Avenue
        New Canaan, CT  06840
        Attention:  Legal Department

        If to Representative:

        Chattanooga Regional Interconnect, Inc.
        5600 Brainerd Drive
        Suite G-30
        Chattanooga, TN  37411
        Attention:  Doug Fisher

    or each party, at such other address as will be designated by such party in
    a written notice to the other party complying as to delivery with the terms
    of this paragraph. Except as herein otherwise expressly provided, all such
    notices, requests, demands, consents, directions, statements, certifications
    and other communications will, when mailed or telegraphed, respectively, be
    effective three days after it has been deposited in the mails or one day
    after it has been delivered to the telegraph company, respectively,
    addressed as aforesaid; all notices which are delivered will be deemed
    effective on delivery and all notices which are telecopied will be deemed
    given when received during normal business hours of the recipient or normal
    business days of the recipients and if not so received, on the immediately
    succeeding business day of recipient.

(h) GOVERNING LAW. This Agreement will be governed by and construed in
    accordance with the laws of the State of New York applicable to contracts
    made and to be fully performed therein.

(i) ENTIRE AGREEMENT. This Agreement sets forth the entire agreement and
    understanding of the parties relating to the subject matter hereof, and
    supersedes all prior understandings, arrangements, representations and
    agreements relating to the subject matter hereof.

(j) COUNTERPARTS. This Agreement may be signed in one or more counterparts, all
    of which together will constitute one Agreement.

(k) NON-ASSIGNMENT. The appointment of Representative as a Representative of
    Client is a personal appointment and may not be transferred, subcontracted
    or assigned in whole or in part by Representative or by operation of law
    without the prior express written consent of Client, which Client may grant
    or withhold in its sole discretion. For purposes hereof, an assignment will
    include any change in control of Representative or any merger,
    consolidation, exchanges of shares, transfer of assets or dissolution of
    Representative.

                                       16
<PAGE>

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

                                      CHATTANOOGA REGIONAL INTERCONNECT, INC.

                                      By /s/ DOUGLAS H. FISHER
                                         ---------------------------------------
                                      Its President
                                         ---------------------------------------

                                      CENTURY ALABAMA CORP.

                                      By /s/ [ILLEGIBLE]
                                         ---------------------------------------
                                      Its Senior Vice President
                                         ---------------------------------------

                                       17
<PAGE>

                                   SCHEDULE A
                                  The "Systems"

                               Fort Payne, Alabama

                                       18
<PAGE>

                                   SCHEDULE B
                             "Programming Services"

                                      ESPN
                                       CNN
                                       TNN
                                       TNT

                                       19
<PAGE>

                                   SCHEDULE C

                                       20
<PAGE>

                               SCHEDULE 1.2(a)(i)

                               PREPAID RECEIVABLES

                                  See Attached
<PAGE>
Report: BH                  Billings by Account Executive             Index: BX5

                               Report Date:  05/19/1998              Page No:  2

Acct No.  Client                Net Contract  Comm Bse   Comm Amt   Profit
     Account Executive: CAROL BARNES
     Contract Though: 06/30/1999
                            Cable System: Rhea County

     920 ARROWHEAD RESORT & MARINE       500.00        --        --        --
     752 HEARTLAND GRILL                  90.00        --        --        --
     910 TROWELL PLUMBING & SUPPLY           --        --        --        --
    3071 FIRST AMERICAN NATIONAL BANK        --        --        --        --
     895 THE GEM SHOP, INC.                  --        --        --        --
     477 ACE HOME CENTER                     --        --        --        --
     366 LUV HOMES                           --        --        --        --
     820 BOB'S SMALL ENGINES             120.00     35.00        --        --
     864 HI-TECH TIRE & WHEEL            200.00    142.00        --        --
     868 1ST BANK OF RHEA COUNTY         400.00    264.00        --        --
      80 GRANT ADCOX CHEVROLET           350.00    248.50        --        --
     481 RHEACO                          350.00    248.50        --        --
                                        -------   -------   -------   -------

     TOTAL FOR CABLE SYSTEM RHEA             --        --        --        --

                        Cable Systems: [Illegible] County

     910 TROWELL PLUMBING & SUPPLY       180.00    151.20         --        --
      80 GRANT ADCOX CHEVORLET           135.00    105.00         --        --
     TOTAL FOR CABLE SYSTEM SLED         305.00        --         --        --
                                        -------   -------    -------   -------

     TOTAL BILLINGS THROUGH 6/30/1998   4003.00   2861.78         --        --

                                        -------   -------    -------   -------
     TOTAL BILLINGS FOR CGB             4003.00   2861.78         --        --

<PAGE>

                         Billings by Account Executive               Index:  BX5

                             Report Date: 05/19/1998               Page No:

Acct No.  Client                Net Contract  Comm Base  Comm Amt  Profit
     Account Executive: AUDREY CLARK
     Contract Though: 06/30/1998
                            Cable System: Rainsville

     916 WILKS TIRE & BATTERY             300.00       --         --        --
     860 BRANTLEY'S                       100.00       --         --        --
     303 WESTERN SIZZLIN FORT PAYNE       300.00   130.00         --        --
     912 DIXIE SALVAGE                     50.00    32.50         --        --
    9075 COMM SOUTH                           --       --         --        --
     772 ALFA INSURANCE /DANNY BRIGHT     100.00       --         --        --
     771 ALFA INSURANCE/JOHN QUINN        100.00       --         --        --
                                         -------  -------    -------   -------
     TOTAL FOR CABLE SYSTEM RAIN         1040.40       --         --        --

                           Cable System: Marion County

     912 DIXIE SALVAGE                   320.00        --         --        --
     902 CASE TRUE VALUE                 320.00        --         --        --
     133 SOUTHERN WHOLESALE CARPETS      400.00        --         --        --
     472 PARKER'S INC                        --        --         --        --
     560 GROSS FURNITURE                     --        --         --        --
     520 THE BANK OF DADE                250.00        --         --        --
     521 TOMMY WOOTEN'S                  150.00        --         --        --
                                        -------   -------    -------   -------
     Total for Cable System MAR              --        --         --        --

                            Cable System: Fort Payne

     916 WILKS TIRE & BATTERY            400.00    252.00      52.40    201.62
     860 BRANTLEY'S                      150.00     94.50         --     75.60
     309 WESTERN SIZZLIN FORT PAYNE      600.00    376.50         --    302.40
     912 DIXIE SALVAGE                    75.00     42.25         --     37.32
     821 SANSOM'S WHOLE CARPET           300.00    189.00         --    151.22
    9077 ATLANTA DISTRICT FORD/TRUCK     357.00    224.91         --    179.93
    9076 ATLANTA DISTRICT FORD/CAR           --    224.91         --    179.93
    9075 COMM SOUTH                      449.82    383.39         --        --
     588 TREASURE BOX COLLECTABLES       300.00    189.00         --        --
     772 ALFA INSURANCE/DANNY BRIGHT     200.00        --         --        --
     771 ALFA INSURANCE/JOHN QUINN       200.00        --         --        --
                                        -------   -------    -------   -------
     Total For Cable Systems  illegible      --        --         --        --

                         Cable System: Chattooga County

     470 STANSELL FURNITURE              800.00    568.00         --        --
                                        -------   -------    -------   -------
     Total for Cable System CHAT         800.00        --         --        --
                                        -------   -------    -------   -------
     Total Billings Though 06/30/1998        --        --         --        --
                                        -------   -------    -------   -------
     Total Billings for AJC                  --        --         --        --
     Report Totals                     45425.38  14159.78         --        --

<PAGE>
Report : BH               Billings by Account Executive              Index:  BX5

                             Report Date: 05/19/1998               Page No:    1

Acct No.  Client                Net Contract  Comm Bse   Comm Amt   Profit
    Account Executive: ROSA WAYNE
    Contract Though: 06/30/1998
                         Cable System: Sequatchie County

    917 SISSY'S PORTRAITS                 75.00     63.00      12.60     50.40
    908 THE BOW SHOP                     150.00    126.00      25.20    100.80
    143 TREVA'S CARPET & FURNITURE       200.00    168.00      33.60    134.40
    578 PARTS PLUS                       275.00    231.00      46.20    184.40
    883 BROWN PETROLEUM                    0.00      0.00       0.00      0.00
     16 BURNETTES FINE JEWELRY           261.25    220.00      44.00    176.25
    747 Dunlap Auto Parts                250.00    210.00      42.00    168.00
    569 VALLEY HOMES                     200.00    165.00      42.00    126.00
    770 CENTURY 21 PROFESSIONAL GROUP    350.00    294.00      58.80    235.20
    100 Moss Motors                      300.00    252.00      58.40    201.60
     95 THE LITTLE STORE                 400.00    336.00      67.20    268.80
                                        -------   -------    -------   -------
    Total for Cable System SEQ          2461.25   2068.00     422.00   1646.25

                            Cable System : Reinsville

    908 THE BOW SHOP                     150.00     97.50      19.50     80.00
                                        -------   -------    -------   -------
    Total for Cable System RAIN          150.00     97.50      19.50     80.00

                           Cable System: Marion County

    919 VALLEY RESALE                    300.00    213.00      42.50    170.40
    917 SISSY'S PORTRAITS                100.00     71.00      14.20     56.80
    914 THE RACING OUTLET                300.00    213.00      42.60    170.40
    453 AG CREDIT                        300.00    213.00      42.60    170.40
    899 CASTLE'S OUTDOOR CENTER          300.00    213.00      42.60    170.40
     27 Conley Smith Chevrolet           400.00    284.00      56.80    227.20
    882 BUBBA'S PIZZA                    300.00    213.00      42.60    170.40
    908 THE BOW SHOP                     350.00    248.50      49.70    198.80
    347 REED'S POOL                      700.00    497.00      99.40    397.60
    345 MARION FARMERS CO-OP             300.00    213.00      42.60    170.40
    890 VINSON'S REPAIR INC.             400.00    284.00      56.00    228.00
    741 THE SHOE TREE                    500.00    355.00      71.00    284.00
    884 SEQUATCHIE VALLEY GARDEN CTR.    300.00    213.00      42.60    170.40
     14 BOAGART'S FURNITURE              300.00    213.00      42.60    170.40
    883 BROWN PETROLEUM                  400.00      0.00       0.00      0.00
    506 Citizen State Bank               800.00    568.00     113.60    454.40
    800 HALL JEWELERS                   1200.00    852.00     170.40    681.60
     27 Conley Smith Chevrolet           500.00    355.00      71.00    284.00
    876 HEART REALTY                     500.00    355.00      71.00    284.00
    148 Vinson Vision Center             700.00    497.00      99.40    397.60
     48 Marion Trust & Banking           500.00    355.00      71.00    284.00
     49 Marion Lumber Co.                950.00    674.50     134.90    539.60
    100 Moss Motors                      500.00    355.00      71.00    284.00
    425 Barnes Tire & Service           1000.00    710.00     142.00    568.00
    742 NORTH JACKSON BANK               400.00    284.00      56.80    227.20
     38 Gentry Chevrolet                1000.00    710.00     142.00    568.00
    788 WHITWELL PHILIPS 66              550.00    390.50      78.10    312.40
                                        -------   -------    -------   -------
    Total for Cable Systems MARI       13450.00   9549.50    1909.10   7640.40

                          Cable System: Jackson County

<PAGE>

Report : BH               Billings by Account Executive              Index:  BX5
                             Report Date:  05/19/1998              Page No:

Acct No.  Client                Net Contract  Comm Bse   Comm Amt   Profit
    Account Executive: ROSA WAYNE
    Contract Though: 06/30/1998
                          Cable System: Jackson County

    741 THE SHOE TREE                    200.00     20.00       4.00     16.00
                                        -------   -------    -------   -------
    Total for Cable System JACK          200.00     20.00       4.00     16.00

                            Cable System: Fort Payne

     27 Conley Smith Chevrolet           250.00    157.50      31.50    126.00
                                        -------   -------    --------  -------
    Total for Cable System FTF           250.00    157.50      31.50    126.00

                          Cable System: Bledsoe County

    809 VALLEY APPLIANCE CTR             100.00     84.00      21.00     63.00
     15 BURNETTES FINE JEWELRY           190.00    160.00      40.00    100.00
    440 SELL'S BUILDING SUPPLY           200.00    168.00      42.00        --
    569 VALLEY HOMES                     200.00    168.00      42.00        --
    823 TIRES PLUS                       200.00    168.00      42.00    126.00
    877 JR'S MARKET & DELI               200.00    168.00         --        --
    570 CHRISTIAN BOOKS AND MORE         200.00    168.00      42.00        --
                                        -------   -------    -------   -------
    Total for Cable Systems SLED        1290.00   1064.00         --        --
                                       --------  --------    -------   -------
    Total Billings Through 6/30/1998   17601.25  12976.50    2657.10        --
                                       --------  --------    -------   -------
    Total Billings for RWW             17601.25  12976.50    2657.10        --
<PAGE>

Report : BH                 Billings by Account Executive             Index: BX5

                               Report Date:  05/19/1998             Page No:

Acct No.  Client                Net Contract  Comm Bse   Comm Amt   Profit
    Account Executive:  HOUSE ACCOUNT
    Contract Though:      06/30/1998
                         Cable System: Sequatchie County

    9043 SUPER CHEVY DEALERS                 --        --         --        --
    9028 Chattanooga Ford                    --        --         --        --
                                        -------  --------    -------   -------
    Total For Cable System SEQ               --        --         --        --

                           Cable System:  Ringold

    9043 SUPER CHEVY DEALERS                 --        --         --        --
    9045 GEORGIA LOTTERY                     --        --         --        --
                                        -------  --------    -------   -------
    Total For Cable System RING              --        --         --        --

                            Cable System: Rhea County
    9043 SUPER CHEVY DEALERS                 --        --         --        --
    9028 Chattanooga Ford                    --        --         --        --
                                        -------  --------    -------   -------
    Total For Cable System RHEA              --        --         --        --

                           Cable System: Murray County
    9043 SUPER CHEVY DEALERS                 --        --         --        --
    9045 GEORGIA LOTTERY                     --        --         --        --
                                        -------  --------    -------   -------
    Total For Cable System MUR               --        --         --        --

                           Cable System: Marion County

    9043 SUPER CHEVY DEALERS                 --        --         --        --
    9028 Chattanooga Ford                    --        --         --        --
                                        -------  --------    -------   -------
    Total For Cable System MAR1              --        --         --        --

                            Cable System: Fort Payne

    9081 NATIONWIDE INSURANCE                --        --         --        --
    9073 YOUR LOCAL CHEVY DEALER             --        --         --        --
                                        -------  --------    -------   -------
    Total For Cable System FTP               --        --         --        --
                                        -------  --------    -------   -------
    Total Billing Through 06/30/1998         --        --         --        --
                                        -------  --------    -------   -------
    Total Billings for HSE                   --        --         --        --

<PAGE>

Report : BH                 Billings by Account Executive            Index:  BX5

                                 Report Date:  05/19/1998           Page No:

Acct No.  Client                Net Contract  Comm Bse   Comm Amt   Profit
    Account Executive:  DIANA WARD
    Contract Though:      06/30/1998
                         Cable System: Whitfield County

   9057 COHUTTA BANKING CC                   --        --         --        --
   9072 DALE BUCHANAN                        --        --         --        --
                                        -------  --------    -------   -------
    Total For Cable System WHIT              --        --         --        --

                             Cable System: Ringgold
   9014 ADVANCE AUTO PARTS                   --        --         --        --
    316 BABB CORPORATION                     --        --         --        --
    316 BABB CORPORATION                     --        --         --        --
                                        -------    ------    -------   -------
    Total For Cable System RING              --        --         --        --

                            Cable System: Rainsville
    364 BLUE CROSS OF AL                     --        --         --        --
                                        -------   -------    -------   -------
    Total for Cable System RAIN              --        --         --        --

                           Cable System: Murray County

    915 FUTURE HOMES OF GA                   --        --         --        --
   9057 COHUTTA BANKING CC                   --        --         --        --
    316 BABB CORPORATION                     --        --         --        --
    880 411 LIQUIDATORS                      --        --         --        --
                                        -------   -------    -------   -------
    Total For Cable System MUR               --        --         --        --

                           Cable System: Marion County

   9009 CITIZENS STATE BANK                  --        --         --        --
   9082 COLUMBIA/HCA                         --        --         --        --
   9060 HYUNDAI DEALER ASSOCIATION           --        --         --        --
                                        -------   -------    -------   -------
    Total For Cable System MAR1              --        --         --        --

                            Cable System: Fort Payne

   9014 ADVANCE AUTO PARTS                   --        --         --        --
                                        -------   -------    -------   -------
    Total For Cable System FTP               --        --         --        --

                         Cable System: Chattooga County

    737 FLOYD MEDICAL CENTER                 --        --         --        --
                                        -------   -------    -------   -------
    Total For Cable System CHAT          --        --         --        --

                          Cable System: Bradley County

    316 BABB CORPORATION                     --        --         --        --
                                        -------   -------    -------   -------
    Total For Cable System Brad              --        --         --        --

<PAGE>

Report : BH                 Billings by Account Executive            Index:

                              Report Date:  05/19/1998            Page No:

Acct No.  Client                Net Contract  Comm Bse   Comm Amt   Profit
    Account Executive:  DIANA WARD
    Contract Though:      06/30/1998
                          Cable System: Bradley County

    Total Billings Through 06/30/1998        --        --         --        --
                                        -------   -------    -------   -------
    Total Billing for DBW                    --        --         --        --
<PAGE>

                               SCHEDULE 1.2(a)(ii)

                                PROMISSORY NOTE

See Attached.

<PAGE>
                                 PROMISSORY NOTE

U.S. $300,000.00                                                  MAY 29, 1998

         FOR VALUE RECEIVED, the undersigned. AVALON-BORDEN COMPANIES, INC., a
Delaware Corporation, or it successors or assigns (hereinafter referred to as
"Maker"), promises to pay to the order of CHATTANOOGA REGIONAL INTERCONNECT,
INC., a Tennessee corporation, or its heirs and assigns (hereinafter referred to
as "Holder"), in lawful money of the United States of America, the principal sum
of THREE HUNDRED THOUSAND AND No/100 DOLLARS ($300,000.00) together with simple
interest on the principal balance from time to time outstanding during the term
of this Promissory Note (hereinafter referred to as the "Note"), from the date
hereof, at the rate hereinafter set forth, the principal and interest being
payable as hereinafter set forth.

         The interest shall accrue on the outstanding principal balance at the
rate of The Bank of New York's prime rate of interest as in effect on May 29,
1998 plus two percent (2%) per annum. The principal and accrued interest shall
be payable quarterly beginning on September 1, 1998, with the final payment due
on or before September 1, 2000. However, Maker may prepay this Note at any time
without penalty or premium.

         This Note and all provisions, conditions, promises and covenants hereof
shall be binding in accordance with the terms hereof upon Maker, its successors
and assigns, provided nothing herein shall be deemed a consent to any assignment
or conveyance that is restricted or prohibited by the terms of this Note. This
Note may not be changed, modified or terminated except by a written instrument
executed by the Holder hereof.

         All notices to Maker hereunder shall be deemed to have been
sufficiently given or served for all purposes when delivered to 777 South
Lawrence Street, Suite 100, Montgomery, Alabama 36104, or sent by United States
mail, postage prepaid, to Maker at such address as given herein, or at such
other address of which Maker shall have notified the party giving such notice in
writing. All notices to Holder hereunder shall be deemed to have been
sufficiently given or served when delivered to Holder's address or sent by
United States mail, postage prepaid, to Holder at 5959 Shallowford Road, Suite
309, Chattanooga, Tennessee 37421, or such other address of which Holder shall
have notified Maker.

         If any provision of this Note shall be determined to be invalid or
unenforceable, such determination shall not affect any other provision of this
Note, and such provision shall be considered deleted here from to the extent
necessary to render this Note enforceable. The Maker, for itself, its successors
and assigns, hereby waives presentment, protest and demand, notice of
presentment, demand, dishonor and non-payment of this Note.

         IN WITNESS WHEREOF, Maker, through its duly authorized officers, has
signed, sealed and delivered this Note on the date first written above.

                                        MAKER:

                                        AVALON-BORDEN COMPANIES, INC.

                                        By: /s/ WALTER R. SIMS
                                           --------------------------------
                                            Walter R. Sims
                                            Exec. V.P.

<PAGE>

                                    GUARANTY

         For value received, I Das A. Borden, of 404 Avalon Avenue, Suite 400,
Muscle Shoals, Alabama 35661 (hereinafter "Guarantor"), absolutely guarantee
payment to Chattanooga Regional Interconnect, Inc., a Tennessee corporation
(hereinafter "Obligee"), in accordance with the terms of the Promissory Note
dated May 29, 1998, in the principal amount of Three Hundred Thousand Dollars
($300,000.00), executed by Avalon-Borden Companies, Inc. (hereinafter
"Obligor"), of 777 South Lawrence Street, Suite 100, Montgomery, Alabama 36104.

         Obligee shall have the privilege of granting such renewals and
extensions as Obligee may deem proper. This Guaranty is in addition to such
other security as Obligee now or hereafter may have. Obligee may surrender or
release all or any portion of this Guaranty. Guarantor acknowledges that this
Guaranty is in effect and binding on Guarantor without reference to whether it
is signed by any other person or persons.

         Liability of Guarantor under this Guaranty shall not be affected or be
impaired by the existence, from time to time, of an indebtedness or liability of
principal Obligor to Obligee in excess of the amount of this Guaranty.

         Dated: May 29, 1998

                                                /s/ DAS A. BORDEN
                                                -------------------------
                                                Das A. Borden

<PAGE>

                                SCHEDULE 1.2(b)

                         LISTING OF ASSUMED LIABILITIES

None

<PAGE>

                                SCHEDULE 1.2(c)

                          ALLOCATION OF PURCHASE PRICE

         The total purchase price of Six Hundred Thousand Dollars (S600,000)
shall be allocated as follows:

         1)       $125.000 allocated to Seller's tangible personal property and
                  other assets used in connection with the Seller's Business;
                  and

         2)       $475,000 allocated to Seller's goodwill and going concern.

<PAGE>

                                SCHEDULE 1.4(a)

             LIST OF SELLER'S EMPLOYEES TO BE RETAINED BY PURCHASER

                  See Attached
<PAGE>

Employee          Hire Date       Salary         Position

1 Rosa W. Wayne     8/91              -            Sales
  ###-##-####                         +                           Health-inc.
  100.00/month Gas                20% Comm.                       Dental - inc.
  Cell Phone Paid                  except                         Life - inc.
  D.O.B. 9/9/55                   25% COMM.
                               - Bledsoe

2 Audrey Clark      9/96          22,000.00        Sales          Health - inc.
  ###-##-####                     20% comm.                       Dental - fam.
  100.00/mo Gas                     Draw                          Life - inc.
  30.00/mo cell phone
  D.O.B.  8/27/54

3 Carol Barnes      1/1995         18,000.00/yr.
  ###-##-####                           +          Sales
  100.00/mo. Gas                    20% Comm.
  D.O.B. 5/8/49

4 Diana B. Ward     10/96          Straight        Sales      Health - inc.
  ###-##-####                      20% comm.
  100.00/mo. Gas
  D.O.B. 9/23/57

  John B. Johnson    5/93          24,000/00 yr.       Health - inc.
  ###-##-####                                          Production/Traffic
  D.O.B. 2/3/58                                        Dental-inc.

 Troy D. Sniff      10/95         21,000.00/yr.        Production
 ###-##-####                                           Health - inc.
 D.O.B. 9/29/64                                        Dental - inc.
                                                       Life - inc.

<PAGE>
                             SCHEDULE 1.5(b)(viii)

                         IRREVOCABLE POWER OF ATTORNEY

         KNOW ALL MEN BY THESE PRESENTS, that CHATTANOOGA REGIONAL INTERCONNECT,
INC., a Tennessee corporation ("Seller"), in connection with the execution and
delivery of that certain Asset Purchase Agreement dated as of May 29, 1998 (the
"Purchase Agreement"), executed by and among Seller and AVALON-BORDEN COMPANY,
INC., a Delaware corporation ("Purchaser"), hereby appoints Purchaser as
Seller's true and lawful attorney, with full power of substitution, irrevocably,
in the name of Purchaser or in the name of Seller, but on behalf of and for the
benefit of Purchaser, for the following purposes:

         1. To collect all Accounts Receivable (as such term is defined in the
Purchase Agreement) of Seller arising out of the sale of goods and services by
Seller arising or created prior to the close of business on the date hereof, and
other items which Seller has conveyed, sold, transferred and assigned to
Purchaser;

         2. To institute and prosecute, in the name of Seller or otherwise, all
proceedings which Purchaser may deem proper in order to collect, assert or
enforce any claim, right or title of any kind in or to the properties and assets
conveyed, sold, transferred and assigned by Seller to Purchaser;

         3. To defend and compromise any and all actions, suits or proceedings
in respect of any of the properties and assets conveyed, transferred, and
assigned by Seller to Purchaser; and

         4. To do such other acts and things in order to effect the intention of
the parties in accordance with the Purchase Agreement as Purchaser shall deem
reasonably advisable.

         5. To retain for Purchaser's own account any amounts collected pursuant
to the foregoing powers, including any sums payable as interest in respect
thereof, and Seller will, from time to time, pay to Purchaser, when received,
any amounts that shall be received by Seller in respect of any receivables or
other assets or properties intended to be sold to Purchaser under the Bill of
Sale or the Purchase Agreement.

         This Power of Attorney is a special power of attorney, given for
consideration and coupled with an interest, shall be irrevocable and shall
survive the dissolution, insolvency and incapacity of Seller.

         IN WITNESS WHEREOF, Seller has executed this instrument as of May 29,
1998.

                                        CHATTANOOGA REGIONAL
                                        INTERCONNECT, INC.
                                        a Tennessee corporation

                                        By: /s/ DOUGLAS H. FISHER
                                           ------------------------------------
                                           DOUGLAS H. FISHER
                                           Its President

<PAGE>

STATE OF TENNESSEE

HAMILTON COUNTY

         I, the undersigned authority, a Notary Public in and for said county in
said state, hereby certify that Douglas H. Fisher, whose name as President of
Chattanooga Regional Interconnect. Inc., a Tennessee corporation, is signed to
the foregoing instrument and who is known to me, acknowledged before me on this
day that, being informed of the contents of the said instrument, he as such
officer and with full authority, executed the same voluntarily for and as the
act of said association.

         GIVEN under my hand and seal, this 29th day of May, 1998.

(NOTARIAL SEAL)
                                          /s/ [ILLEGIBLE]
                                             --------------------------------
                                             Notary Public

                                          My Commission Expires:  4/23/2000

<PAGE>

                              SCHEDULE 1.5(b)(ix)

                               CLIENT/VENDOR LIST

See Atttached.
<PAGE>
                               SCHEDULE 1.5(b)(x)

                           NATIONAL CABLE CORPORATION

                              CONTRACT TERMINATION

See Attached

<PAGE>

(Logo omitted)

                                                                  May 27, 1998
                                                         Via Fax: 617-247-1692

Mr. Robert H. Warner, Jr.
Director of Affiliate Relations
National Cable Communications
137 Newbury Street

Boston, MA 02116

Dear Bob,

         Per our telephone conversations, I am writing to confirm our agreement
that NCC has agreed to allow Chattanooga Regional Interconnect to continue with
our present contract with NCC for this specified term, with the exception that
should our business be acquired by any other entity, the purchaser would have
the right to negotiate their own contract and would not be bound by ours.

         In other words, NCC agrees to modify Paragraph 6 of the National Cable
Communications representation agreement by and between NCC and CRI (the
"Contract") so that the Contract shall not be binding on CRI's successors.

         If this represents the terms of our verbal agreement, would you please
countersign this letter and return it to me by facsimile (423-490-3490) and
Federal Express today.

         Bob, I feel certain that this issue will be behind us by Friday, May
29th, one way or the other. I can't tell you how much I appreciate your
cooperation in this matter.

         Many Thanks....

/s/ DOUGLAS H. FISHER
----------------------------
Douglas H. Fisher
President, CRI, Inc.

/s/ ROBERT H. WARNER JR.
------------------------
Robert H. Warner Jr.
National Cable Communications

                         5959s Shallowford Rd. Ste 4093
                             Chattanooga, TN 37421
                         423-485-5554 Fax 423-485-8715

<PAGE>

                                  SCHEDULE 1.7

                            ASSIGNMENTS AND CONSENTS

         1. Helicon Waiver & Assignment.

         2. Bledsoe Waiver & Assignment.

         3. Falcon Assignments.

<PAGE>

                              CONSENT TO ASSIGNMENT

         WHEREAS, Falcon First, Inc. ("Falcon") and Chattanooga Regional
Interconnect ("CRI") are parties to two (2) Advertising Sales Agreements dated
October 26, 1995 ("Agreements"); and

         WHEREAS, in connection with the transfer by CRI of certain of its
assets to The Avalon-Borden Company Inc. ("Avalon") ("Transaction"), CRI intends
to assign its right, title and interest in and to the Agreement to Avalon;

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

1.       Falcon hereby consents to CRI's assignment to Avalon of all of its
         right, title and interest in the Agreements, effective on the date of
         closing the transaction.

2.       Avalon agrees that upon such assignment, Avalon will assume all
         obligations of CRI under the Agreements, and be bound by all terms and
         conditions thereof, from and after closing.

3.       CRI will remain responsible for all obligations under this Agreements
         until closing of the Transaction, but will be released and discharged
         from its obligations under the Agreements which accrue from and after
         the date of the closing of the Transaction.

4.       Upon closing of the Transaction, Avalon will notify Falcon in writing
         that the assignments and assumption contemplated herein has taken
         place.

Dated:   May 29, 1998.

ACCEPTED AND AGREED:                        CONSENT TO THIS ASSIGNMENT
                                            HEREBY GIVEN:

Chattanooga Regional Interconnect           Falcon First, Inc.

By: /s/ Douglas H. Fisher                   By: /s/ (illegible)
    -----------------------------               -----------------------------
Title:  President                           Title:  Vice President, Ad Sales
       --------------------------                 ---------------------------

Avalon Borden Company, Inc.

By:    /s/ Walter Sims
       --------------------------
Title:   Exec. V.P.
       --------------------------

<PAGE>
                               HELICON COPORATION
                               638 PALISADE AVENUE
                          ENGLEWOOD CLIFFS, NEW JERSEY

June 16, 1997

Mr. Douglas H. Fisher
President, CRI, Inc.
5959 Shallowford Road, Suite 309
Chattanooga, TN 37421

Dear Doug:

The following should serve as legal notice that Helicon Corporation waives its
right to the purchase of Chattanooga Regional Interconnect, In. as those rights
pertain to the contract between Helicon and CRI, particularly article 8, page 3.

Further note should be taken that Global Interconnect; Inc, may be assigned
under the same conditions and provisions, as was CRI, Inc. in its contract dated
August 1, 1996.

Sincerely,

/s/ David Baum
----------------------------
David Baum
Helicon Corporation
Vice President of Operations

<PAGE>
BLEDSOE  [LOGO OMITTED]
    TELEPHONE
COOPERATIVE INC.

P.O. Box 609
203 Cumberland Avenue
Pikeville, Tennessee 37367

                                  May 29, 1998

Mr. Douglas H. Fisher
President, CRI, Inc.
5959 Shallowford Road, Suite 309
Chattanooga, Tennessee 37421

Dear Mr. Fisher:

         The following should serve as legal notice that Bledsoe Telephone
Cooperative Corporation waives its right to the purchase of Chattanooga Regional
Interconnect, Inc. as those rights pertain to the contract between Bledsoe
Telephone Cooperative Corporation and CRI, particularly article 8, page 3.

         Further note should be taken that Global Interconnect, Inc. may be
assigned under the same conditions and provisions as was CRI, Inc. in its
contract dated May 15, 1997.

                                                Sincerely,

                                                /s/ Gregory L. Anderson/RS
                                                ---------------------------
                                                Gregory L. Anderson
                                                General Manager

rfs
c: file

A Full Service
Telecommunications Company

Since 1953

CATV

Cellular
Paging

DBS
Satellite

<PAGE>
                                  SCHEUDLE 2.3

                                  BALANCE SHEET

See Attached

<PAGE>

                                  BALANCE SHEET

                                      AS OF

                                     5/1/98

LIABILITIES

Accts. Payable                      50,985.37

Note payable GMAC                    8,071.70
                                   ----------
    Lumina

                                    59,057.07

ASSETS

Accts. Receivable                  114,301.10

Operator Fee - Deposit              10,000.00
     Helicon

<PAGE>

                                  SCHEDULE 2.4

                              FINANCIAL INFORMATION

                           (TO BE PROVIDED BY SELLER)

See Profit & Loss Statement Attached.
<PAGE>
                                       CRI
                             STATEMENT OF OPERATIONS
                      FOR CHATANOOGA REGIONAL INTERCONNECT
                     FOR THE 4 PERIODS ENDED APRIL 30, 1998

<TABLE>
<CAPTION>
                                    ---------- PERIOD TO DATE ---------    ----------- YEAR TO DATE -----------
                                      ACTUAL     PRIOR YEAR    VARIANCE      ACTUAL     PRIOR YEAR     VARIANCE
                                    ----------   ----------   ---------    ----------   ----------    ---------
<S>                                 <C>           <C>         <C>          <C>          <C>           <C>
REVENUE:
SALES REVENUE - CABLE               560,434.95    50,522.19    9,912.76    219,513.70   185,061.04    33,492.66
SALES REVENUE-CABLE PRODUCTION        2,650.00          .00    2,650.00     13,675.00          .00    13,675.00
MISC. SALES REVENUE - CABLE              20.00          .00       20.00         20.00       269.84      (249.84)
                                    ----------    ---------   ---------    ----------   ----------    ---------
TOTAL REVENUE                        63,104.95    50,522.19   12,582.76    232,208.70   185,330.88    46,877.82
                                    ----------    ---------   ---------    ----------   ----------    ---------
    GROSS PROFIT                     63,104.95    50,522.19   12,582.76    232,208.70   185,330.88    44,877.82

EXPENSES:

DIRECT COST
SALES DISCOUNTS - CABLE                    .00          .00         .00           .00     3,039.27    (3,039.27)
COMMISSIONS - CABLE                        .00          .00         .00        210.92     1,345.42    (1,134.50)
                                    ----------    ---------   ---------    ----------   ----------    ---------
TOTAL DIRECT COST                          .00          .00         .00        210.92     4,384.69    (4,173.77)

COST OF SALES
OPERATOR FEES - CABLE                16,855.75    12,612.00    4,243.75     61,086.05    53,911.43     7,174.62
SALARIES & WAGES - CABLE              8,035.14     3,972.32    4,062.82     37,461.41    20,689.58    16,771.83
PAYROLL TAX EXPENSE - CABLE           1,261.81       802.81      459.00      5,964.02     3,409.42     2,554.60
SALES COMMISSIONS - CABLE             7,461.74     5,698.52    1,763.22     30,175.42    22,919.66     7,255.76
PLACEMENT COST - CABLE                2,306.30     4,789.86   (2,483.58)    10,115.92    21,155.11   (11,039.19)
PRINT & OTHER COSTS - CABLE              55.00          .00       55.00      1,364.13       158.08     1,206.05
                                    ----------    ---------   ---------    ----------   ----------    ---------
TOTAL COST OF SALES                  35,975.74    27,875.53    8,100.21    146,166.95   122,243.28    23,923.67

OPERATING EXPENSES
ADVERTISING EXPENSE - CABLE           3,060.00        50.00    3,010.00      3,060.00        50.00     3,010.00
AUTOMOBILE EXPENSE - CABLE                 .00          .00         .00        519.42        57.86       461.56
BAD DEBT EXPENSE - CABLE               (454.20)         .00     (454.20)       469.80          .00       469.80
DUES & SUBSCRIPTIONS - CABLE            100.00          .00      100.00        240.00       122.00       118.00
POSTAGE & FREIGHT - CABLE               318.63          .00      318.63        783.84       769.50        14.36
GROUP HEALTH INSURANCE - CABLE          961.67          .00      961.67      3,920.06          .00     3,920.06
401 K PLAN EXPENSE CABLE                166.78          .00      166.78        718.91          .00       718.91
MISCELLANEOUS EXPENSE - CABLE              .00          .00         .00           .00      (284.90)      284.90
OFFICE EXPENSE - CABLE                  472.97          .00      472.97        992.52       206.67       785.85
RENT EXPENSE - CABLE                  1,689.51          .00    1,689.51      3,466.55          .00     3,466.50
REPAIRS & MAINTENANCE - CABLE              .00        80.00      (80.00)     1,112.31       161.65       950.66
TELEPHONE EXPENSE - CABLE               874.93     1,078.67     (203.74)     3,886.17     7,029.70    (3,143.53)
TRAVEL EXPENSE - CABLE                  169.63       247.75      (78.12)       495.57       586.48       (90.91)
UTILITIES/CABLE                         305.45          .00      305.45        474.15          .00       474.15
CELLULAR PHONE EXPENSE - CABLE             .00       125.64     (125.64)          .00       125.64      (125.64)
PAGERS-CABLE                             84.23          .00       84.23        245.03          .00       245.03
JANITORIAL/CABLE                        137.50          .00      137.50        137.50          .00       137.50
                                    ----------    ---------   ---------    ----------   ----------    ---------
TOTAL OPERATING EXPENSES              7,687.10     1,582.06    6,305.04     20,521.85     8,824.60    11,697.25
                                    ----------    ---------   ---------    ----------   ----------    ---------

    TOTAL EXPENSES                   43,862.84    29,457.59   14,405.25    166,899.72   135,452.57    31,447.15
                                    ----------    ---------   ---------    ----------   ----------    ---------

    NET INCOME FROM OPERATIONS       19,242.11    21,064.60   (1,822.49)    65,308.98    49,878.31    15,430.67
</TABLE>

<PAGE>

                                       CRI
                             STATEMENT OF OPERATIONS
                      FOR CHATANOOGA REGIONAL INTERCONNECT
                     FOR THE 4 PERIODS ENDED APRIL 30, 1998

<TABLE>
<CAPTION>
                                    ---------- PERIOD TO DATE ---------    ----------- YEAR TO DATE -----------
                                      ACTUAL     PRIOR YEAR    VARIANCE      ACTUAL     PRIOR YEAR     VARIANCE
                                    ----------   ----------   ---------    ----------   ----------    ---------
<S>                                 <C>           <C>         <C>          <C>          <C>           <C>
OTHER INCOME AND EXPENSE:

DEPRECIATION EXPENSE - CABLE         (3,022.75)   (3,022.75)        .00    (12,091.00)  (12,091.00)         .00
                                    ----------    ---------   ---------    ----------   ----------    ---------
TOTAL OTHER INCOME AND EXPENSE       (3,022.75)   (3,022.75)        .00    (12,091.00)  (12,091.00)         .00
                                    ----------    ---------   ---------    ----------   ----------    ---------
    EARNINGS BEFORE INCOME TAX       16,219.36    18,041.85   (1,822.49)    53,217.98    37,787.31    15,430.67
                                    ----------    ---------   ---------    ----------   ----------    ---------
    NET INCOME (LOSS)                16,219.36    18,041.85   (1,822.49)    53,217.98    37,787.31    15,430.67
                                    ==========    =========   =========    ==========   ==========    =========
</TABLE>

<PAGE>

                                  SCHEDULE 2.7

                               LOCATION OF ASSETS

           See Attached.
<PAGE>

<TABLE>
                                                                SCHEDULE OF INSURANCE
WILLIS CORROON CORPORATION OF TENNESSEE
One Republic Center                                                                                     Date Prepared : 18-MAR-1998
633 Chestnut St. Ste. 1100                                                                              Reported As Of: 12-MAR-1998
Chattanooga, TN 37450                                                                                Binder           : 00042441-01
(423) 755-7521                                                                                       Page             : 1

Prepared for: Chattanooga Regional Interconnect, Inc.           Producer:  Michael Langley, CIC

<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
                                   COVERAGE                                                           POLICY
------------------------------------------------------------------------------ ----------------------------------------------------
           Description                 Limits                Comments               Period                Carrier/Number
------------------------------- -------------------- ------------------------- ---------------- -----------------------------------
COMMERCIAL PACKAGE                                                               12-MAR-1998      General Accident Insurance
                                                                                 12-MAR-1999      Binder:  00042441
                                                                               ----------------------------------------------------
<S>                             <C>                  <C>
Commercial Property
Section

                                                     Named Insured(s)

                                                     Chattanooga Regional Interconnect, Inc.

                                                     Chattanooga Regional Interconnect, Inc.

SPECIFIED LIMITS                                     Location 0001   5959 Shallowford Road
Office                                                               Suite 309
                                                                     Chattanooga, TN 37421

                                                                     Bldg 0001   Office

                                       200,000       80% Coinsurance
                                                     Replacement Cost
                                                     Special Cause of Loss
                                                     Deductible $500 Per Occurrence

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

This Schedule of insurance is for information purposes only. It does not alter,
amend or change your coverage. Please refer to specific policies for limits,
terms, conditions and exclusions
<PAGE>

<TABLE>
                                                                SCHEDULE OF INSURANCE
WILLIS CORROON CORPORATION OF TENNESSEE
One Republic Center                                                                                     Date Prepared : 18-MAR-1998
633 Chestnut St. Ste. 1100                                                                              Reported As Of: 12-MAR-1998
Chattanooga, TN 37450                                                                                Binder           : 00042441-01
(423) 755-7521                                                                                       Page             : 2

Prepared for: Chattanooga Regional Interconnect, Inc.           Producer:  Michael Langley, CIC

<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
                                   COVERAGE                                                           POLICY
------------------------------------------------------------------------------ ----------------------------------------------------
           Description                 Limits                Comments               Period                Carrier/Number
------------------------------- -------------------- ------------------------- ---------------- -----------------------------------
COMMERCIAL PACKAGE                                                               12-MAR-1998      General Accident Insurance
                                                                                 12-MAR-1999      Binder:  00042441
                                                                               ----------------------------------------------------
<S>                             <C>                  <C>
Crime Simplified
Section

Coverages:
Money & Securities - Inside            10,000
                                                     Special Cause of Loss
                                                     Deductible $250 Per Occurrence

Money & Securities - Outside           10,000        Special Cause of Loss
                                                     Deductible $250 Per Occurrence

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

This Schedule of insurance is for information purposes only. It does not alter,
amend or change your coverage. Please refer to specific policies for limits,
terms, conditions and exclusions.

<PAGE>

<TABLE>
                                                                SCHEDULE OF INSURANCE
WILLIS CORROON CORPORATION OF TENNESSEE
One Republic Center                                                                                     Date Prepared : 18-MAR-1998
633 Chestnut St. Ste. 1100                                                                              Reported As Of: 12-MAR-1998
Chattanooga, TN 37450                                                                                Binder           : 00042441-01
(423) 755-7521                                                                                       Page             : 3

Prepared for: Chattanooga Regional Interconnect, Inc.           Producer:  Michael Langley, CIC

<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
                                   COVERAGE                                                           POLICY
------------------------------------------------------------------------------ ----------------------------------------------------
           Description                 Limits                Comments               Period                Carrier/Number
------------------------------- -------------------- ------------------------- ---------------- -----------------------------------
COMMERCIAL PACKAGE                                                               12-MAR-1998      General Accident Insurance
                                                                                 12-MAR-1999      Binder:  00042441
                                                                               ----------------------------------------------------
<S>                             <C>                  <C>
Bloc Data Processing
Section

Coverages:
Hardware                               10,200
                                                     Replacement Cost
                                                     Special Cause of Loss
                                                     Hwy 37 South Summerville GA

Hardware                               10,200
                                                     Replacement Cost
                                                     Special Cause of Loss
                                                     203 Cumberland, Pikeville TN

Hardware                               10,200
                                                     617 Gault Ave N. Ft. Fayne, AL

Hardware                               10,200        3958 County Road #47, Rainsville AL

Hardware                               10,200        7333 Hwy  41 Jasper TN

Hardware                               10,200        1347 Crestview Dr. Ringgold GA

Hardware                               10,200        927 S. Alt 52 Chatsworth GA

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

This Schedule of insurance is for information purposes only. It does not alter,
amend or change your coverage. Please refer to specific policies for limits,
terms, conditions and exclusions.
<PAGE>

<TABLE>
                                                                SCHEDULE OF INSURANCE
WILLIS CORROON CORPORATION OF TENNESSEE
One Republic Center                                                                                     Date Prepared : 18-MAR-1998
633 Chestnut St. Ste. 1100                                                                              Reported As Of: 12-MAR-1998
Chattanooga, TN 37450                                                                                Binder           : 00042441-01
(423) 755-7521                                                                                       Page             : 4

Prepared for: Chattanooga Regional Interconnect, Inc.           Producer:  Michael Langley, CIC

<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
                                   COVERAGE                                                           POLICY
------------------------------------------------------------------------------ ----------------------------------------------------
           Description                 Limits                Comments               Period                Carrier/Number
------------------------------- -------------------- ------------------------- ---------------- -----------------------------------
COMMERCIAL PACKAGE                                                               12-MAR-1998      General Accident Insurance
                                                                                 12-MAR-1999      Binder:  00042441
                                                                               ----------------------------------------------------
<S>                             <C>                  <C>
Bloc Data Processing

Section                         (Continued)

Hardware                               10,200
                                                     118 Cherry Street Dunlap TN

Hardware                               10,200
                                                     450 Clearview Dr. Dayton TN

Hardware Coverage                     374,740
                                                     Replacement Cost
                                                     Special Cause of Loss
                                                     5959 Shallowford Road, Ste 309

Software Coverage                      50,000
                                                     Replacement Cost
                                                     Special Cause of Loss
                                                     5959 Shallowford Road, Ste 309

(ineligible)                           20,000
                                                     5959 Shallowford Road, Ste 309

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

This Schedule of insurance is for information purposes only. It does not alter,
amend or change your coverage. Please refer to specific policies for limits,
terms, conditions and exclusions.

<PAGE>

<TABLE>
                                                                SCHEDULE OF INSURANCE
WILLIS CORROON CORPORATION OF TENNESSEE
One Republic Center                                                                                     Date Prepared : 18-MAR-1998
633 Chestnut St. Ste. 1100                                                                              Reported As Of: 12-MAR-1998
Chattanooga, TN 37450                                                                                Binder           : 00042441-01
(423) 755-7521                                                                                       Page             : 5

Prepared for: Chattanooga Regional Interconnect, Inc.           Producer:  Michael Langley, CIC

<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
                                   COVERAGE                                                           POLICY
------------------------------------------------------------------------------ ----------------------------------------------------
           Description                 Limits                Comments               Period                Carrier/Number
------------------------------- -------------------- ------------------------- ---------------- -----------------------------------
COMMERCIAL PACKAGE                                                               12-MAR-1998      General Accident Insurance
                                                                                 12-MAR-1999      Binder:  00042441
                                                                               ----------------------------------------------------
<S>                             <C>                  <C>
Commercial Liability Simp
(illegible)

Occurrence Policy

Commercial General Liability
General Aggregate                    2,000,000
Products & Completed
    Operations Aggregate             2,000,000
Each Occurrence                      1,000,000
Fire Damage                             50,000       Any One Fire
Medical Expenses                         5,000       Any One Person

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

This Schedule of insurance is for information purposes only. It does not alter,
amend or change your coverage. Please refer to specific policies for limits,
terms, conditions and exclusions.

<PAGE>

<TABLE>
                                                                SCHEDULE OF INSURANCE
WILLIS CORROON CORPORATION OF TENNESSEE
One Republic Center                                                                                     Date Prepared : 18-MAR-1998
633 Chestnut St. Ste. 1100                                                                              Reported As Of: 12-MAR-1998
Chattanooga, TN 37450                                                                                Binder           : 00042441-01
(423) 755-7521                                                                                       Page             : 6

Prepared for: Chattanooga Regional Interconnect, Inc.           Producer:  Michael Langley, CIC

<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
                                   COVERAGE                                                           POLICY
------------------------------------------------------------------------------ ----------------------------------------------------
           Description                 Limits                Comments               Period                Carrier/Number
------------------------------- -------------------- ------------------------- ---------------- -----------------------------------
COMMERCIAL PACKAGE                                                               12-MAR-1998      General Accident Insurance
                                                                                 12-MAR-1999      Binder:  00042441
                                                                               ----------------------------------------------------
<S>                             <C>                  <C>
Sign
Section

Coverages:
     Rotation Sign &                  50,000
     Table Combo                                     Replacement Cost
                                                     Special Cause of Loss
                                                     Deductible $250 Per Occurrence
                                                     Sign is of metal construction.

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

This Schedule of insurance is for information purposes only. It does not alter,
amend or change your coverage. Please refer to specific policies for limits,
terms, conditions and exclusions.

<PAGE>

                                  SCHEDULE 2.8

                     LIABILITIES TO BE SATISFIED AT CLOSING

           None.

<PAGE>

                                  SCHEDULE 2.11

                                 EMPLOYEE PLANS

           See Attached.

<PAGE>

                                 EMPLOYEE PLANS

1.        American United Life Insurance 401K Retirement Plan

2.        Cariten Health Insurance Plan

3.        Reliance Insurance Co. - Dental and Life Insurance

<PAGE>

                                  SCHEDULE 2.14

                      LISTING OF ALL LICENSES AND APPROVALS

           None.

<PAGE>

        Secretary of State               ISSUANCE DATE: 05/28/1998
       Corporations Section              REQUEST NUMBER: 98148136
James K. Polk Building, Suite 1800       TELEPHONE CONTACT: (615) 741-6488
  Nashville, Tennessee 37243-0306
                                         CHARTER/QUALIFICATION DATE: 03/18/1991
                                         STATUS: ACTIVE
                                         CORPORATE EXPIRATION DATE: PERPETUAL
                                         CONTROL NUMBER: 0238556
                                         JURISDICTION: TENNESSEE

TO:                                      REQUESTED BY:
DELPHI COMMUNICATIONS, INC.              DELPHI COMMUNICATIONS, INC.
500 CHURCH STREET                        500 CHURCH STREET
NASHVILLE, TN 37219                      NASHVILLE, TN 37219

                            CERTIFICATE OF EXISTENCE

        I, RILEY C. DARNELL, SECRETARY OF STATE OF THE STATE OF TENNESSEE
                             DO HEREBY CERTIFY THAT
--------------------------------------------------------------------------------
                    "CHATTANOOGA REGIONAL INTERCONNECT, INC."
--------------------------------------------------------------------------------

IS A CORPORATION DULY INCORPORATED UNDER THE LAW OF THIS STATE WITH DATE OF
INCORPORATION AND DURATION AS GIVEN ABOVE;
THAT ALL FEES, TAXES, AND PENALTIES OWED TO THIS STATE WHICH AFFECT THE
EXISTENCE OF THE CORPORATION HAVE BEEN PAID;
THAT THE MOST RECENT CORPORATION ANNUAL REPORT REQUIRED HAS BEEN FILED WITH THIS
OFFICE;
AND THAT ARTICLES OF DISSOLUTION HAVE NOT BEEN FILED; AND
THAT ARTICLES OF TERMINATION OF CORPORATE EXISTENCE HAVE NOT BEEN FILED

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

FOR: REQUEST FOR CERTIFICATE                                ON DATE:  05/28/98

                                                               FEES
                                                    RECEIVED  $60.00     $60.00
FROM:
DELPHI COMMUNICATIONS INC.                   TOTAL PAYMENT RECEIVED:    $120.00
500 CHURCH STREET
ST. CLOUD CORNER                                     RECEIPT NUMBER: 00002318600
NASHVILLE, TN 37219-0000                             ACCOUNT NUMBER: 00005824

                                                         /s/ Riley C. Darnell

                                                         RILEY C. DARNELL
                                                         SECRETARY OF STATE

<PAGE>

        Secretary of State               ISSUANCE DATE: 05/28/1998
       Corporations Section              REQUEST NUMBER: 98148134
James K. Polk Building, Suite 1800
  Nashville, Tennessee 37243-0306        CHARTER QUALIFICATION DATE: 03/18/1991
                                         STATUS: ACTIVE
                                         CORPORATE EXPIRATION DATE: PERPETUAL
                                         CONTROL NUMBER: 0238556
                                         JURISDICTION: TENNESSEE

TO:                                      REQUESTED BY:
DELPHI COMMUNICATIONS, INC.              DELPHI COMMUNICATIONS, INC.
500 CHURCH STREET                        500 CHURCH STREET
NASHVILLE, TN 37219                      NASHVILLE, TN 37219

        I, RILEY C. CARNELL, SECRETARY OF STATE OF THE STATE OF TENNESSEE
                             DO HEREBY CERTIFY THAT
--------------------------------------------------------------------------------
                    "CHATTANOOGA REGIONAL INTERCONNECT, INC."
--------------------------------------------------------------------------------

WAS INCORPORATED OR QUALIFIED TO DO BUSINESS IN THE STATE OF TENNESSEE ON THE
ABOVE DATE, AND THAT THE ATTACHED DOCUMENT(S) WAS/WERE FILED IN OFFICE ON THE
DATE(S) AS BELOW INDICATED:

REFERENCE    DATE FILED   FILING TYPE                  FILING ACTION
 NUMBER                                    NAM DUR STK PRN OFC AGT INC MAL FYC
2118-1332    03/18/1991  CHART-PROFIT
3413-1252    11/21/1997  AN RPT                         X
3502-1347    04/01/1999  AN RPT

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

FOR: REQUEST FOR COPIES                                     ON DATE:  05/28/98

                                                               FEES
                                                    RECEIVED  $60.00     $60.00
FROM:
DELPHI COMMUNICATIONS INC.                   TOTAL PAYMENT RECEIVED:    $120.00
500 CHURCH STREET
ST. CLOUD CORNER                                     RECEIPT NUMBER: 00002318600
NASHVILLE, TN 37219-0000                             ACCOUNT NUMBER: 00005824

                                                         /s/ Riley C. Darnell

                                                         RILEY C. DARNELL
                                                         SECRETARY OF STATE

<PAGE>

                                     CHARTER

                                       OF

                     CHATTANOOGA REGIONAL INTERCONNECT, INC.

          The undersigned, acting as the incorporator of a corporation under the
Tennessee Business Corporation act, adopts the following charter for the
corporation:

     1.   NAME. The name of the corporation is:

          Chattanooga Regional Interconnect, Inc.

     2.   SHARES. The corporation is authorized to issue one thousand (1,000)
          common shares, which shares shall have unlimited voting rights and are
          entitled to receive the net assets of the corporation upon
          dissolution.

     3.   Address of Initial registered Office and Name of Initial Registered
          Agent. The street address and zip code of the corporation's initial
          registered office in the State of Tennessee is:

          701 Market Street, Suite 500
          Chattanooga, Tennessee 37402-4800

          The corporation's initial registered office is located in Hamilton
          County, Tennessee.

          The name of the corporation's initial registered agent at that office
          is:

          Harold L. North, Jr.

     4.   INCORPORATOR. The name, address and zip code of the incorporator is:

          Harold L. North, Jr.
          701 Market Street, Suite 500
          Chattanooga, Tennessee 37402-4800

<PAGE>

     5.   ADDRESS OF PRINCIPAL OFFICE. The street address and zip code of the
          principal office of the corporation is:

          5600 Brainerd Road
          Suite G-30
          Chattanooga, Tennessee 37411

     6.   LIABILITY OF DIRECTORS. To the fullest extent permitted by the
          Tennessee Business Corporation Act, as the same exists or may
          hereafter be amended, a director of this corporation shall not be
          personally liable to the corporation or its shareholders for monetary
          damages for breach of a fiduciary duty as a director.

     7.   FOR PROFIT. The corporation is for profit.

     The corporation's existence shall begin when the charter is filed by the
Secretary of State.

Dated:  March 14th, 1991

                                             /s/ Harold L. North, Jr.
                                             -----------------------------------
                                             Harold L. North, Jr., Incorporator

<PAGE>

[ ] CORPORATION APPRAISAL REPORT
    STATE OF TENNESSEE
    SECRETARY OF STATE
    SUITE 1800, JAMES K. POLK BUILDING
    NASHVILLE, TN 37243-(illegible)

     Filing Fee - $10.00; Priviledge Tax - $10.00; Total Amount Due - $20.00
Month is December                 THIS REPORT IS DUE ON OR BEFORE  April 1, 1997

1.  Secretary of State Control Number: 0238556    OR Federal Employer
                                                  Identification Number:

2A) Name and Mailing Address of Corporation       2B) State or Country of
                                                  Incorporation

    CHATTANOOGA REGIONAL INTERCONNECT, INC.         Tennessee
    5600 Brainerd Road, Suite G-30
    Chattanooga, TN 37411                         2C) ADD OR CHANGE MAILING
                                                  ADDRESS

                                                    5959 Shallowford Road
                                                    Suite 309
                                                    Chattanooga, TN 37421

     A. PRINCIPAL ADDRESS INCLUDING CITY, STATE ZIP CODE:

           5600 Brainerd Road, Suite G-30
           Chattanooga, TN 37411

     B. CHANGE OF PRINCIPAL ADDRESS:

                         STREET                  CITY    STATE     ZIP CODE +4
           5959 Shallowford Road, Suite 309, Chattanooga, TN 37421

  **BLOCKS 4A AND 4B MUST BE COMPLETED OR THE ANNUAL REPORT WILL BE RETURNED**

4A. NAME AND BUSINESS ADDRESS INCLUDING ZIP CODE OF THE PRESIDENT,
    SECRETARY AND PRINCIPAL OFFICERS (ATTACH ADDITIONAL SHEET IF NECESSARY)
<TABLE>
<CAPTION>
  TITLE              NAME                   ADDRESS               CITY, STATE, ZIP CODE +4
<S>             <C>                  <C>                            <C>
President       DOUGLAS H. FISHER    5959 Shallowford Rd., Ste 309, Chattanooga, TN 37421
Secretary       HERBERT G. ADCOX     5959 Shallowford Rd., Ste 309, Chattanooga, TN 37421
</TABLE>

B.  BOARD OF DIRECTORS (NAMES, BUSINESS ADDRESS INCLUDING ZIP CODE
    [X]  Same as Above
    [ ]  None.

OR LIST BELOW      NAME                               CITY, STATE ZIP CODE +4

A.  NAME OF REGISTERED AGENT AS APPEARS ON SECRETARY OF STATE RECORDS

           Harold L. North, Jr.

B.  REGISTERED ADDRESS AS APPEARS ON SECRETARY OF STATE RECORDS:

           701 Market Street, Suite 500, Chattanooga, TN 37402-4800

INDICATE BELOW ANY CHANGES TO THE REGISTERED AGENT NAME AND/OR REGISTERED OFFICE
BLOCK 5A AND/OR 5B) THERE IS AN ADDITIONAL $10.00 FILING FEE AND $10.00
PRIVILEGE TAX FOR A TOTAL OF $20.00 REQUIRED FOR CHANGES MADE TO THIS
INFORMATION.

    A.  CHANGE OF REGISTERED PERMIT:

    B.  CHANGE OF REGISTERED OFFICE:

               STREET           CITY           STATE       ZIP CODE +4   COUNTY
                                                TN

    THIS BOX APPLIES ONLY TO NONPROFIT CORPORATIONS. OUR RECORDS REFLECT THAT
    YOUR NONPROFIT CORPORATION IS A PUBLIC BENEFIT OR A MUTUAL BENEFIT
    CORPORATION AS INDICATED BELOW.

                             IF BLANK OR CHANGE. PLEASE CHECK APPROPRIATE BOX:
                             [ ]   PUBLIC
                             [ ]   MUTUAL

    IF A TENNESSEE RELIGIOUS CORPORATION, PLEASE CHECK BOX UNLESS OTHERWISE
    INDICATED.
                             [ ]   RELIGIOUS

SIGNATURE  /s/ Douglas H. Fischer               (10) DATE:  Oct. 31, 1997

TYPE/PRINT NAME OF SIGNER: Douglas H. Fisher.   (11) TITLE OF SIGNER: President

                    **THIS REPORT MUST BE DATED AND SIGNED**
<PAGE>

[ ] CORPORATION APPRAISAL REPORT
    STATE OF TENNESSEE
    SECRETARY OF STATE
    SUITE 1800, JAMES K. POLK BUILDING
    NASHVILLE, TN 37243-illegible

                                   (illegible)

                                     THIS REPORT IS DUE ON OR BEFORE   05/01/97
____MONTH IS____
Secretary of State Control Number:  0238556         OR  Federal Employer
                                               Identification Number: 62-1462974

2A)  Name and Mailing Address of
     Corporation                         2B State or Country of Incorporation

CHATTANOOGA REGIONAL INTERCONNECT, INC.          Tennessee
SUITE G-30
5600 Brainerd Road,
Chattanooga, TN 37411                    2C) ADD OR CHANGE MAILING ADDRESS
                                         CHATTANOOGA REGIONAL INTERCONNECT, INC.
                                         5959 Shallowford Road
                                         Suite 309
                                         Chattanooga, TN 37421
     D   03/10/1991  FOR PROFIT

A.   PRINCIPAL ADDRESS INCLUDING CITY, STATE ZIP CODE:

     SUITE G-30, 5600 BRAINERD ROAD, CHATTANOOGA, TN 37411

B.   CHANGE OF PRINCIPAL ADDRESS:
                     STREET                     CITY         STATE     ZIP CODE
     5959 Shallowford Road, Suite 309        Chattanooga      TN         37421

**BLOCKS 4A AND 4B MUST BE COMPLETED OR THE ANNUAL REPORT WILL BE RETURNED**

4A.  NAME AND BUSINESS ADDRESS INCLUDING ZIP CODE OF THE PRESIDENT, SECRETARY
     AND PRINCIPAL OFFICERS
<TABLE>
<CAPTION>
  TITLE               NAME                 BUSINESS ADDRESS      CITY, STATE, ZIP CODE +4
<S>             <C>                  <C>                           <C>
President       DOUGLAS H. FISHER    5959 Shallowford Rd. Ste 309, Chattanooga, TN 37421
Secretary       HERBERT G. ADCOX     5771 Lee Highway              Chattanooga, TN 37421
</TABLE>

B.   BOARD OF DIRECTORS (NAMES, BUSINESS ADDRESS INCLUJDING ZIP CODE) (ATTACH
     ADDITIONAL SHEET IF NECESSARY)
     [X]  Same as Above
     [ ]  None.

OR LIST BELOW           NAME       BUSINESS ADDRESS      CITY, STATE ZIP CODE +4

5A.  NAME OF REGISTERED AGENT AS APPEARS ON SECRETARY OF STATE RECORDS

           HAROLD L. NORTH, JR.

B.   REGISTERED ADDRESS AS APPEARS ON SECRETARY OF STATE RECORDS:

           701 Market Street, Suite 500, Chattanooga, TN 37402-4800

INDICATE BELOW ANY CHANGES TO THE REGISTERED AGENT NAME AND/OR REGISTERED OFFICE
BLOCK 5A AND/OR 5B) THERE IS AN ADDITIONAL $10.00 REQUIRED FOR CHANGES MADE TO
THIS INFORMATION.

     A.    CHANGE OF REGISTERED PERMIT:

     B.    CHANGE OF REGISTERED OFFICE:

               STREET           CITY           STATE       ZIP CODE +4   COUNTY

     THIS FORM APPLIES ONLY TO NONPROFIT CORPORATIONS. OUR RECORDS REFLECT THAT
     YOUR NONPROFIT CORPORATION IS A PUBLIC BENEFIT OR A MUTUAL BENEFIT
     CORPORATION AS INDICATED BELOW.

                             IF BLANK OR CHANGE, PLEASE CHECK APPRIATE BOX:
                             [ ]   PUBLIC
                             [ ]   MUTUAL

     IF A TENNESSEE RELIGIOUS CORPORATION, PLEASE CHECK BOX UNLESS OTHERWISE
     INDICATED.
                             [ ]   RELIGIOUS

SIGNATURE  /s/ Douglas H. Fischer                (10) DATE:  Oct. 31, 1997

TYPE/PRINT NAME OF OWNER:   DOUGLAS H. FISHER.   (11) TITLE OF OWNER:  President

                    **THIS REPORT MUST BE DATED AND SIGNED**
<PAGE>

THIS INSTRUMENT WAS PREPARED BY:

CHAMBLISS, BAHNER & STOPHEL, P.C.
100 Tallan Building
Two Union Square
Chattanooga, Tennessee 37402-2502
Telephone:  (423) 756-3000

                                  BILL OF SALE

         Chattanooga Regional Interconnect, Inc., a Tennessee corporation,
(hereinafter "Seller"), for good and valuable consideration, the receipt and
legal sufficiency of which are hereby acknowledged, as is more specifically
described in the Asset Purchase Agreement dated May 29, 1998, between Seller and
Avalon-Borden Companies, Inc. (hereinafter "Buyer"), the terms of which are
incorporated herein and made a part hereof, does hereby sell, assign, transfer
and convey, unto Buyer its successors and assigns, all right, title and interest
in and to the following assets of Seller ("Assets"):

         (i) Seller's tangible personal property and other assets used in
connection with the Seller's cable ad-insertion turn-key business located in
Chattanooga, Tennessee (the "Seller's Business") (such as machinery, equipment,
inventories, parts and supplies, furniture and furnishings) including those
properties and assets set forth on Schedule 1 attached to this Bill of Sale;

         (ii) All Accounts Receivable, as defined in the Assets Purchase
Agreement, of Seller as of the date hereof, including any pre-billed yet unaired
advertising time relating in any way to Seller's Business;

         (iii) Seller's intangible property used in connection with Seller's
Business, including Seller's trade name "Chattanooga Regional Interconnect" and
any trademarks, copyrights or other rights related to such trade name; and

         (iv) The books and records of Seller relating to the Assets, including
any and all accounts receivable, aging and collection history reports.

         TO HAVE AND TO HOLD all rights, title and interest in and to the Assets
hereby sold, assigned, transferred, conveyed and delivered to Buyer and its
successors and assigns for its and their own use and benefit forever.

         Seller hereby represents and warrants to Buyer and its successors and
assigns that Seller has good and marketable title to the Assets and the good and
lawful right to sell and transfer the same and that the Assets are free and
clear of all claims,
<PAGE>

liens, encumbrances and rights of others of any nature whatsoever.

         Seller hereby covenants and agrees to defend such title forever against
all claims, liens, encumbrances and rights from any person and of any nature
whatsoever.

         Except as otherwise specifically provided in this Bill of Sale, the
Assets are sold, assigned, transferred, conveyed and delivered AS IS, WHERE IS,
AND NO REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, IS MADE WITH RESPECT TO
THE QUALITY, QUANTITY, VALUE, PHYSICAL CONDITION, FITNESS FOR PURPOSE OR FOR
PARTICULAR USE OR MERCHANTABILITY OF THE ASSETS. ALL WARRANTIES, EXPRESS OR
IMPLIED, ARE HEREBY DISCLAIMED AND EXCLUDED. SELLER SHALL IN NO EVENT BE LIABLE
FOR ANY AND ALL RIGHT TO RECOVER SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES
INCLUDING, BUT LIMITED TO, ANY LOST PROFITS, DAMAGES RELATING TO INJURY TO OR
DEATH OF PERSON, OR DAMAGES TO PROPERTY WHETHER ON THEORIES OF NEGLIGENCE,
BREACH OR CONTRACT, BREACH OF WARRANTY, MISREPRESENTATION, STRICT LIABILITY OR
ANY OTHER LEGAL THEORY.

         IN WITNESS WHEREOF, Seller has executed this Bill of Sale on this 29th
day of May, 1998.

                                         SELLER:

                                         CHATTANOOGA REGIONAL INTERCONNECT, INC.

                                         By: /s/Douglas H. Fischer
                                             -----------------------------------
                                             Douglas H. Fisher, President

STATE OF TENNESSEE   )
                     )
COUNTY OF HAMILTON   )

         Before me, a Notary Public of the state and county aforesaid,
personally appeared Douglas H. Fisher, to me known (or proved to me on the basis
of satisfactory evidence) to be the person described in and who executed the
foregoing instrument, and acknowledged that he executed the same as his free act
and deed.

         WITNESS my hand and seal, at office in Chattanooga, Tennessee, this
29th day of May, 1998.

                                              ----------------------------------
                                                        Notary Public

                                              My Commission Expires: 4-23-2000

                                       2
<PAGE>

                                     CHARTER

                                       OF

                     CHATTANOOGA REGIONAL INTERCONNECT, INC.

         The undersigned, acting as the incorporator of a corporation under the
Tennessee Business Corporation Act, adopts the following charter for the
corporation:

     1.  NAME. The name of the corporation is:

         Chattanooga Regional Interconnect, Inc.

     2.  SHARES. The corporation is authorized to issue one thousand (1,000)
         common shares, which shares shall have unlimited voting rights and are
         entitled to receive the net assets of the corporation upon dissolution.

     3.  Address of Initial registered Office and Name of Initial Registered
         Agent. The street address and zip code of the corporation's initial
         registered office in the State of Tennessee is:

         701 Market Street, Suite 500
         Chattanooga, Tennessee 37402-4800

         The corporation's initial registered office is located in Hamilton
         County, Tennessee.

         The name of the corporation's initial registered agent at that office
         is:

         Harold L. North, Jr.

     4.  INCORPORATOR. The name, address and zip code of the incorporator is:

         Harold L. North, Jr.
         701 Market Street, Suite 500
         Chattanooga, Tennessee 37402-4800
<PAGE>

     5.  ADDRESS OF PRINCIPAL OFFICE. The street address and zip code of the
         principal office of the corporation is:

         5600 Brainerd Road
         Suite G-30
         Chattanooga, Tennessee 37411

     6.  LIABILITY OF DIRECTORS. To the fullest extent permitted by the
         Tennessee Business Corporation Act, as the same exists or may hereafter
         be amended, a director of this corporation shall not be personally
         liable to the corporation or its shareholders for monetary damages for
         breach of a fiduciary duty as a director.

     7.  FOR PROFIT. The corporation is for profit.

         The corporation's existence shall begin when the charter is filed by
the Secretary of State.

Dated:  March 14th, 1991
                                            /s/ Harold L. North, Jr.
                                            ------------------------------------
                                            Harold L. North, Jr., Incorporator
<PAGE>

[ ] CORPORATION APPRAISAL REPORT
    STATE OF TENNESSEE
    SECRETARY OF STATE
    SUITE 1800, JAMES K. POLK BUILDING
    NASHVILLE, TN 37243-illegible

      FILING FEE - $10.00; PRIVELEGE TAX - $10.00; TOTAL AMOUNT DUE $20.00

CURRENT MONTH December       THIS REPORT IS DUE ON OR BEFORE      April 1, 1997

1)  Secretary of State Control Number: 0238556           OR Federal Employer
                                                       Identification Number:

2A) Name and Mailing Address of Corporation  2B) State or Country of
                                             Incorporation

CHATTANOOGA REGIONAL INTERCONNECT, INC.      Tennessee
5600 Brainerd Road, Suite G-30
Chattanooga, TN 37411                        2C)  ADD OR CHANGE MAILING ADDRESS

                                             5959 Shallowford Road
                                             Suite 309
                                             Chattanooga, TN 37421

3A. PRINCIPAL ADDRESS INCLUDING CITY, STATE, ZIP CODE:

           5600 Brainerd Road, Suite G-30
           Chattanooga, TN 37411

B.  CHANGE OF PRINCIPAL ADDRESS:
           STREET                        CITY    STATE    ZIP CODE +4
    5959 Shallowford Road, Suite 309, Chattanooga, TN 37421

  **BLOCKS 4A AND 4B MUST BE COMPLETED OR THE ANNUAL REPORT WILL BE RETURNED**

4A. NAME AND BUSINESS ADDRESS INCLUDING ZIP CODE OF THE PRESIDENT, SECRETARY
    AND PRINCIPAL OFFICERS
<TABLE>
<CAPTION>
  TITLE                    NAME                     ADDRESS              CITY, STATE, ZIP CODE +4
<S>                  <C>                  <C>                             <C>
President            DOUGLAS H. FISHER    5959 Shallowford Rd. Suite 309, Chattanooga, TN 37421
Secretary            HERBERT G. ADCOX     5959 Shallowford Rd. Suite 309, Chattanooga, TN 37421
</TABLE>

B.  BOARD OF DIRECTORS (NAMES, BUSINESS ADDRESS INCLUDING ZIP CODE)
    (ATTACH ADDITIONAL SHEET IF NECESSARY)
           [X]  Same as Above
           [ ]  None.

OR LIST BELOW             NAME                       CITY, STATE ZIP CODE +4

A.  NAME OF REGISTERED AGENT AS APPEARS ON SECRETARY OF STATE RECORDS

           Harold L. North, Jr.

B.  REGISTERED ADDRESS AS APPEARS ON SECRETARY OF STATE RECORDS:

           701 Market Street, Suite 500, Chattanooga, TN 37402-4800

INDICATE BELOW ANY CHANGES TO THE REGISTERED AGENT NAME AND/OR REGISTERED OFFICE
BLOCK 5A AND/OR 5B) THERE IS AN ADDITIONAL $10.00 FILING FEE AND $10.00
PRIVILEGE TAX FOR A TOTAL OF $20.00 REQUIRED FOR CHANGES MADE TO THIS
INFORMATION.

    A.     CHANGE OF REGISTERED PERMIT:

    B.     CHANGE OF REGISTERED OFFICE:

                STREET        CITY          STATE        ZIP CODE +4  COUNTY
                                             TN

    THIS BOX APPLIES ONLY TO NONPROFIT CORPORATIONS. OUR RECORDS REFLECT THAT
    YOUR NONPROFIT CORPORATION IS A PUBLIC BENEFIT OR A MUTUAL BENEFIT
    CORPORATION AS INDICATED BELOW:

                    IF BLANK OR CHANGE, PLEASE CHECK APPRIATE BOX:
                    [ ]   PUBLIC
                    [ ]   MUTUAL

IF A TENNESSEE RELIGIOUS CORPORATION, PLEASE CHECK BOX UNLESS OTHERWISE
INDICATED.
                    [ ]   RELIGIOUS

SIGNATURE  /s/Douglas H. Fisher                  (10) DATE:  Oct. 31, 1997

TYPE/PRINT NAME OF OWNER:   Douglas H. Fisher.   (11) TITLE OF OWNER:  President

                    **THIS REPORT MUST BE DATED AND SIGNED**
<PAGE>

[ ] CORPORATION ANNUAL REPORT
    STATE OF TENNESSEE
    SECRETARY OF STATE
    SUITE 1800, JAMES K. POLK BUILDING
    NASHVILLE, TN 37243-illegigle

           illegigle              THIS REPORT IS DUE ON OR BEFORE     05/01/97

Secretary of State Control Number: 0238556  OR  Federal Employer Identification
                                                       Number:  62-1462974

2A) Name and Mailing Address of Corporation     2B) State or Country of
                                                Incorporation

CHATTANOOGA REGIONAL INTERCONNECT, INC.             Tennessee
5600 Brainerd Road, Suite G-30
Chattanooga, TN 37411                    2C)  ADD OR CHANGE MAILING ADDRESS

                                         CHATTANOOGA REGIONAL INTERCONNECT, INC.
                                         5959 Shallowford Road
                                         Suite 309
                                         Chattanooga, TN 37421

       D   03/10/1991  FOR PROFIT

A.  PRINCIPAL ADDRESS RELOCATING CITY, STATE ZIP CODE:

    SUITE G-30, 5600 BRAINERD ROAD, CHATTANOOGA, TN 37411

B.  CHANGE OF PRINCIPAL ADDRESS:
                 STREET                         CITY          STATE    ZIP CODE
    5959 Shallowford Road, Suite 309         Chattanooga,       TN       37421

**BLOCKS 4A AND 4B MUST BE COMPLETED OR THE ANNUAL REPORT WILL BE RETURNED**

4A. NAME AND BUSINESS ADDRESS INCLUDING ZIP CODE OF THE PRESIDENT, SECRETARY AND
    PRINCIPAL OFFICERS
<TABLE>
<CAPTION>
   TITLE                   NAME                    ADDRESS             CITY, STATE, ZIP CODE**
<S>                  <C>                  <C>                           <C>
President            DOUGLAS H. FISHER    5959 Shallowford Rd. Ste 309, Chattanooga, TN 37421
Secretary            HERBERT G. ADCOX     Lee Highway                   Chattanooga, TN 37421
</TABLE>

B.  BOARD OF DIRECTORS (NAMES,    ( ineligible )
    [X]  Same as Above
    [ ]  None.

OR LIST BELOW           NAME       BUSINESS ADDRESS    CITY, STATE ZIP CODE +4

G.  NAME OF REGISTERED AGENT AS APPEARS ON SECRETARY OF STATE RECORDS

           HAROLD L. NORTH, JR.

H.  REGISTERED ADDRESS AS APPEARS ON SECRETARY OF STATE RECORDS:

           701 Market Street, Suite 500, Chattanooga, TN 37402-4800

INDICATE BELOW ANY CHANGES TO THE REGISTERED AGENT NAME AND/OR REGISTERED OFFICE
BLOCK 5A AND/OR 5B) THERE IS AN ADDITIONAL $10.00 FILING FEE AND $10.00
PRIVILEGE TAX FOR A TOTAL OF $20.00 REQUIRED FOR CHANGES MADE TO THIS
INFORMATION.

    A.     CHANGE OF REGISTERED PERMIT:

    B.     CHANGE OF REGISTERED OFFICE:

              STREET      CITY       STATE           ZIP CODE +4  COUNTY

A.  THIS FORM APPLIES ONLY TO NONPROFIT CORPORATIONS. OUR RECORDS REFLECT THAT
    YOUR NONPROFIT CORPORATION IS A PUBLIC BENEFIT OR A MUTUAL BENEFIT
    CORPORATION AS INDICATED BELOW.

                            IF BLANK OR CHANGE, PLEASE CHECK APPRIATE BOX:
                            [ ]   PUBLIC
                            [ ]   MUTUAL

B.  IF A TENNESSEE RELIGIOUS CORPORATION, PLEASE CHECK BOX UNLESS OTHERWISE
    INDICATED.
                            [ ]   RELIGIOUS

SIGNATURE  /s/Douglas H. Fisher                  (10) DATE:  Oct. 31, 1997

TYPE/PRING NAME OF OWNER:   DOUGLAS H. FISHER.   (11) TITLE OF OWNER:  President

                    **THIS REPORT MUST BE DATED AND SIGNED**Exhibit 10.2

                Letter of Intent (Reynolds Metals Company, Inc.)

<PAGE>

                             REYNOLDS METALS COMPANY
                 P. O. BOX 27003 - RICHMOND, VIRGINIA 23261-7003

                                  June 19, 1998

Mr. Maurice C. Mitchell
President and Chief Operating Officer
Avalon-Borden Companies, Inc.
777 South Lawrence Street, Suite 100
Montgomery, Alabama 36104

Dear Mr. Mitchell:

     With reference to your letter dated March 18, 1998 to the undersigned, we
are pleased to confirm the intention of Reynolds Metals Company ("Reynolds") to
sell to Avalon-Borden Companies, Inc. or to one of its affiliates acceptable to
Reynolds (in either case, "Buyer") Reynolds' Alloys rolling mill and its Alabama
and Southern Reclamation facilities and Sheffield coil coating facility (the
rolling mill and such other facilities being referred to collectively as the
"Facilities") and the operations conducted (or in the case of the Southern
Reclamation facility, formerly conducted) at the Facilities (the "Business") on
the following terms and conditions (the "Transaction"):

     1.   PURCHASED ASSETS.

          (a) Reynolds will sell to Buyer substantially all of the assets used
     or held for use exclusively in the Business and at the Facilities (except
     as noted below), including real estate owned by Reynolds upon which the
     Facilities are situated; furniture; fixtures; equipment; construction in
     progress; repair parts and spares; Reynolds' rights under contract and
     commitments of the Business (including contracts and commitments between
     Reynolds and its affiliates and between Reynolds' Mill Products Division
     and Reynolds' other divisions); accounts receivable (including internal
     receivables); prepaid expenses; and inventory (collectively, the "Purchased
     Assets"), free and clear of any and all liens, claims, charges, exceptions
     or encumbrances except for (x) the Liabilities and (y) certain permitted
     liens as agreed by the parties (e.g., liens related to the industrial
     development bond financings referred to in the next sentence and statutory
     liens for taxes not yet due and liens of carriers, warehousemen and the
     like for sums not yet due). (Buyer acknowledges that the real property
     underlying certain of the Facilities is leased by Reynolds, as lessee,
     under industrial development
<PAGE>

     bond financings that, at Buyer's option, will be paid off by Reynolds
     before Closing or assumed by Buyer at Closing (as herein defined)).

          (b) Notwithstanding the preceding subparagraph (a), and for avoidance
     of doubt, the Purchased Assets will not include (i) cash; (ii) accounts
     receivable that are past due ("Past Due Receivables") as of the Closing
     Date (as herein defined); (iii) the site of Reynolds' former Listerhill
     reduction plant; (iv) retention ponds no longer in use; (v) surplus real
     estate; (vi) the Manufacturing Technology Laboratory facilities; (vii)
     assets located at Reynolds' headquarters in Richmond, Virginia; (viii) the
     trademarks REYNOLDS and Knight, Horse and Dragon Design; or the names
     "Reynolds", "Reynolds Metals Company", "Reynolds Aluminum" or any variation
     thereof; or any trademark containing REY, REYNO or REYNOLDS or a Knight,
     Horse and Dragon design (collectively, the "Reynolds Marks"); or (ix)
     assets held in or for any pension, health care or other employee benefit
     plan.

     2. LIABILITIES. Buyer will assume the following liabilities of Reynolds
with respect to the Business (collectively, the "Liabilities"):

          (a) all current liabilities (consisting of trade payables, internal
     payables and other accruals) shown on the Alloys Complex Statement of
     Assets and Liabilities attached as Exhibit A, as adjusted for transactions
     in the ordinary course through the Closing Date;

          (b) post-Closing liabilities under Reynolds' collective bargaining
     agreements (the "CBA's") covering employees of the Business; provided, that
     Buyer will provide, under plans or contracts of Buyer, post-retirement
     medical benefits, pension benefits and all other employee benefits required
     under the CBA's substantially identical to those currently provided by
     Reynolds; and further provided, that Reynolds shall retain liability for
     post-retirement medical benefits payable under Reynolds' retiree medical
     plans only for those employees of the Business eligible as of the Closing
     Date (as herein defined) for such coverage under Reynolds' retiree medical
     plans, as well as all pension benefits accrued prior to the Closing Date.
     In the event the Closing Date falls within a Calendar Quarter, as such
     terms is used in Reynolds' pension plans, Reynolds acknowledges that the
     accrued pension benefits for active participants will be equal to the
     benefits that would have been payable to such participants if they had
     worked for Reynolds through the end of such Calendar Quarter;

          (c) post-Closing obligations under executory contracts (including
     without limitation supply agreements, purchase and sale commitments and
     equipment leases), or applicable portions thereof, relating exclusively to
     the Business; and

          (d) post-Closing obligations under environmental and other permits
     transferred to Buyer and covering the Facilities and/or the Business.

                                       2
<PAGE>

     3. CLOSING; PURCHASE PRICE; POST-CLOSING ADJUSTMENT; INTERNAL RECEIVABLES
AND PAYABLES; OTHER RECEIVABLES.

          (a) We anticipate that we will sign the Agreement (as herein defined)
     on or before August 31, 1998 and that closing of the Transaction (the
     "Closing") will take place on September 30, 1998. The date on which the
     Closing occurs is referred to in this letter as the "Closing Date".

          (b) Buyer will pay to Reynolds in cash for the Purchased Assets the
     sum (the "Purchase Price") of (i) $92,160,000 plus (ii) the value, as of
     the Closing Date, of Net Working Capital. "Net Working Capital" means the
     difference between (x) current assets included in the Purchased Assets and
     (y) current liabilities included in the Liabilities. The parties
     acknowledge that working capital for the Business as of March 31, 1998 is
     $226,818,000, and that Net Working Capital as of March 31, 1998 is
     $211,452,000 (i.e., $226,818,000 minus $15,366,000 in Past Due
     Receivables). Buyer will pay the Purchase Price at Closing, with the amount
     payable at Closing attributable to Net Working Capital to be based on a
     statement of Net Working Capital prepared by Reynolds as of the most recent
     month-end for which such financial information is available.

          (c) The Purchase Price will be subject to post-Closing adjustment (the
     "Post-Closing Adjustment") for changes through the Closing Date in the
     value of Net Working Capital, such changes to be determined from a
     statement of Net Working Capital as of the Closing Date (the "Closing
     Statement") prepared by Reynolds and subject to approval by Buyer. The
     value of inventory reflected in the Closing Statement will be based on a
     physical inventory taken by Reynolds and observed by Buyer, if desired, as
     of the Closing Date. For purposes of valuing inventory, the costs to be
     used by Reynolds will be based on Reynolds' standard costs on a FIFO basis
     as of the Closing Date, which costs shall have been derived from Reynolds'
     books and records and compiled consistent with Reynolds' past practices and
     accounting policies; provided, that work-in-process and finished goods
     metal that has been held more than 90 days and is not saleable in the
     ordinary course of business will be written down to scrap value. The party
     required to pay the Post-Closing Adjustment will pay it to the other party
     in cash, together with interest computed from the Closing Date to the date
     of such payment at The Bank of New York's prime rate of interest as in
     effect on the Closing Date.

          (d) Internal receivables included in the Purchased Assets and internal
     payables included in the Liabilities will be netted and discharged no later
     than 30 days after Closing.

                                       3
<PAGE>

          (e) For a period of 90 days following the closing (the "Collection
     Period"), Buyer will use commercially reasonable efforts to collect
     receivables (other than internal receivables) included in the Purchased
     Assets. Buyer may, at its option, tender back to Reynolds any receivables
     that remain uncollected at the end of the Collection Period within 10 days
     following the expiration of the Collection Period for the face amount
     thereof (less any reserve transferred to Buyer).

     4. REYNOLDS MARKS AGREEMENT. Reynolds will grant to Buyer, for a period of
one year from the Closing, the non-transferable right to use the Reynolds Marks
solely for use in the conduct of the Business on equipment, signage, materials,
supplies and other Purchased Assets on hand as of the Closing and bearing any of
the Reynolds Marks.

     5. TECHNOLOGY AND SOFTWARE.

          (a) Reynolds will grant Buyer a perpetual, royalty-free, fully paid up
     license under Reynolds-owned patents, copyrights and technology ("Licensed
     Technology") that cover processes, methods, practices, techniques and
     systems currently used and/or products currently produced at the
     Facilities. The license will be freely transferable to a buyer of the
     Facilities. The license will, among other things, include the right to
     change and further develop the Licensed Technology. The license will grant
     worldwide nonexclusive rights to sell products produced at the Facilities.
     The license will grant the exclusive right in North America (subject to the
     next sentence) to make products using Licensed Technology used solely at
     the Facilities and the nonexclusive right to make products in North America
     using technology used at other facilities now or previously owned by
     Reynolds. The exclusive license referred to in the preceding sentence will
     remain exclusive until the end of the five-year term of the covenant not to
     compete referred to in paragraph 10 or until such earlier date that Buyer
     determines not to produce a particular product to which the Licensed
     Technology relates, and thereafter will be nonexclusive. For avoidance of
     doubt, the "exclusive" license will permit Reynolds to use Licensed
     Technology, subject to the noncompetition covenant provisions.

          (b) Reynolds will transfer to Buyer as part of the Purchased Assets
     software owned by Reynolds that is used exclusively in the Business
     ("Exclusive Business Software"). Reynolds will continue, until the Closing,
     ongoing efforts with respect to programming changes in Exclusive Business
     Software needed to resolve Year 2000 issues. However, Exclusive Business
     Software will be transferred to Buyer at Closing on an "as is" basis,
     without warranty as to Year 2000 compliance.

          (c) Under a Data Processing Services Agreement, Reynolds will grant
     Buyer perpetual, royalty-free, fully paid up licenses to use certain
     software owned or developed by Reynolds, which is currently used, but not
     exclusively, in

                                       4
<PAGE>

     the Facilities ("Licensed Software"). Under such licenses, Buyer would have
     the right to change and further develop the Licensed Software, including
     all source and object codes. Licensed Software will be provided on an "as
     is" basis.

     6. TRANSITION SERVICES. At the Closing, Buyer and Reynolds will enter into
one or more transition service agreements (including the Data Processing
Services Agreement referred to above) pursuant to which Reynolds will provide
certain data processing, accounting and other corporate administrative services
as may be agreed by us currently being provided to the Business for up to one
year from the Closing. Reynolds will provide such transition services on
mutually agreeable terms and conditions.

     7. CAN SHEET SUPPLY AGREEMENT.

          (a) Buyer acknowledges that Reynolds has negotiated with Ball
     Corporation and its affiliate Ball Metal Beverage Container Corp.
     (individually and together, "Ball") an agreement (the "Reynolds Can Sheet
     Supply Agreement") under which Reynolds would, effective upon the closing
     of the sale of Reynolds' Global Can Division to Ball (the "Can Division
     Sale"), supply can sheet to Ball. Promptly upon Buyer's execution of this
     letter, Reynolds will seek to obtain Ball's consent to Reynolds' (i)
     disclosure of the Reynolds Can Sheet Supply Agreement to Buyer and (ii)
     assignment of the Reynolds Can Sheet Supply Agreement to Buyer. Buyer will
     cooperate with Reynolds in providing such information as may be necessary
     to obtain Ball's consent as described in the preceding sentence. For a
     period of fifteen days following its initial receipt of the Reynolds Can
     Sheet Supply Agreement from Reynolds, Buyer shall have the right (upon
     written notice delivered by fax or otherwise to Reynolds within such
     fifteen-day period) to terminate its obligation to consummate the
     Transaction if the terms of the Reynolds Can Sheet Supply Agreement are not
     acceptable to Buyer.

          (b) If Ball consents to Reynolds' assignment of the Reynolds Can Sheet
     Supply Agreement to Buyer and Buyer does not exercise the termination right
     referred to in the preceding subparagraph, then:

               (i) if the closing of the Can Division Sale precedes the Closing,
          at Closing Reynolds (in its capacity as supplier) will assign the
          Reynolds Can Sheet Supply Agreement to Buyer and Buyer will assume
          Reynolds' rights and obligations as supplier under the Reynolds Can
          Sheet Supply Agreement;

                                       OR

               (ii) if the Closing precedes the closing of the Can Division
          Sale, Reynolds and Buyer will, at Closing, enter into an agreement
          substantially

                                       5
<PAGE>

          identical to the Reynolds Can Sheet Supply Agreement, with only
          such changes therein as are described in the next sentence (with such
          changes, the "Borden Can Sheet Supply Agreement"). At the closing of
          the Can Division Sale, Reynolds (in its capacity as purchaser) shall
          assign the Borden Can Sheet Supply Agreement to Ball and Ball will
          assume Reynolds' rights and obligations as purchaser under the Borden
          Can Sheet Supply Agreement. The preceding portions of this clause (y)
          notwithstanding, the pricing mechanisms currently in effect under the
          commitment of Reynolds' Mill Products Division to supply can sheet to
          Reynolds' Global Can Division will apply under the Borden Can Sheet
          Supply Agreement until the earlier of (i) the closing of the Can
          Division Sale or (ii) December 31, 1998.

          (c) Either Reynolds or Buyer may terminate its obligation to
     consummate the Transaction if Ball does not consent before the Closing date
     to Reynolds' assignment of the Reynolds Can Sheet Supply Agreement to
     Buyer.

     8. CERTAIN OTHER AGREEMENTS.

          (a) Without limiting the generality of paragraphs 1 and 2(c), Reynolds
     will assign to Buyer at Closing the UBC Supply Agreement dated as of
     February 27, 1998 between Reynolds and Wise Recycling, LLC.

          (b) At closing, Reynolds will enter into an agreement (the "Metal
     Supply Agreement") to supply P1020 unalloyed aluminum ingot ("P1020 Ingot")
     and alloyed sheet ingot ("Sheet Ingot") to Buyer. Under the Metal Supply
     Agreement, Reynolds will sell P1020 Ingot and Sheet Ingot to Buyer at
     market prices. The Metal Supply Agreement will contain other mutually
     acceptable terms and conditions.

     9. EMPLOYEES.

          (a) Buyer will offer employment to all bargaining unit Business
     employees (including without limitation those on lay-off, disability, lease
     of absence or workers' compensation at Closing) and all or a portion of the
     salaried Business employees. Bargaining unit Business employees who accept
     Buyer's offer of employment will be Buyer's employees effective as of the
     Closing, but the status of such bargaining unit Business employees with
     respect to their active employment, lay-off, disability, leave of absence
     or workers' compensation shall not change as a result of the Closing.
     Salaried Business employees on disability, leave of absence or workers'
     compensation at Closing shall remain Reynolds' employees until such time as
     they are employed by Buyer. As between Reynolds and Buyer, Reynolds shall
     be solely responsible for all matters relating to any Business employees
     who do not accept Buyer's offer of employment.

                                       6
<PAGE>

          (b) Subject to the provisions of paragraph 2(b), in the case of
     bargaining unit Business employees, Buyer will assume the post-Closing
     obligations of Reynolds under the CBA's, including without limitation
     obligations with respect to post-retirement medical benefits and pension
     benefits. Reynolds will reimburse Buyer for any costs incurred by Buyer
     with respect to bargaining unit Business employees that are on lay-off,
     disability, leave of absence or workers' compensation at Closing until the
     time such employees return to work for Buyer. Bargaining unit Business
     employees hired by Buyer will receive credit for service with Reynolds for
     all purposes under Buyer's employee benefit plans and programs.

          (c) Reynolds has been engaged and will continue with due diligence to
     engage in negotiations with the unions representing certain bargaining unit
     Business employees regarding changes in work rules. Reynolds will keep
     Buyer apprised of developments in these continuing negotiations. To the
     extent possible, Buyer intends to continue Reynolds' terms and conditions
     of employment for bargaining unit Business employees. Therefore, the
     parties intend that the Transaction not be construed as a "permanent
     shutdown" for purposes of Section III of Reynolds' pension plans for hourly
     employees or Reynolds' supplemental unemployment benefit plans.

          (d) Buyer will provide salaries Business employees hired by Buyer
     competitive salaries and benefits. Salaried Business employees hired by
     Buyer will receive credit for service with Reynolds for all purposes under
     Buyer's employee benefit plans and programs except for benefit accruals
     under a defined benefit pension plan. Reynolds shall retain liability for
     post-retirement medical benefits payable under Reynolds' retiree medical
     plans only for those salaried Business employees hired by Buyer eligible as
     of the Closing Date for such coverage under Reynolds' retiree medical
     plans. For avoidance of doubt, Reynolds shall have no liability for
     post-retirement medical benefits, if any, payable by Buyer under Buyer's
     plans to salaried Business employees.

          (e) In the case of salaried Business employees who are employed by
     Buyer and thereafter terminated by Buyer ("Terminated Salaried Employees")
     other than for cause on or before the first anniversary of the Closing
     Date, Buyer will make severance payments ("Severance") to each such
     terminated employee in an amount equal to the amount such employee would
     have received under Reynolds' Salaried Employee Enhanced Termination
     Package, and Buyer will provide continued health care and life insurance
     coverage ("Continued Benefits") for each such employee for the same period
     of time such employee would have received such coverage under Reynolds'
     Termination Allowance Policy, in each case based on such employee's
     combined service with Reynolds and Buyer. The preceding sentence
     notwithstanding, Reynolds shall reimburse Buyer for the costs of Severance
     and Continued Benefits paid by Buyer to up to

                                       7
<PAGE>

     15 Terminated Salaried Employees terminated by Buyer within six months
     after the Closing Date.

     10. COVENANT NOT TO COMPETE. Reynolds will agree not to compete with Buyer
in North America for five years after Closing (the "Restricted Period") in the
manufacture and sale of aluminum can sheet, rigid container sheet, trailer roof
coil, brazing sheet and fin stock ("Alloys Products"). This covenant will not
apply in the case of (i) activities currently conducted by Reynolds or its
affiliates other than through the Business (including existing sales, marketing,
technology transfer and technical assistance arrangements with Samara
Metallurgical Company); (ii) operations of any aluminum company which may
acquire Reynolds; (iii) operations being conducted at the time of acquisition by
any aluminum company which may be acquired in whole or in part by Reynolds; and
(iv) activities conducted by Reycan S.E.C./Reycan L.P. The covenant may contain
such other exceptions as are mutually acceptable to the parties. For avoidance
of doubt with respect to clause (i) above, Reynolds will agree not to enter into
any additional arrangements during the Restricted Period with respect to the
sale or marketing of Alloys Products in North America.

     11. OPERATION OF THE BUSINESS. From the execution of this letter until the
Closing, Reynolds will conduct the Business in the ordinary course in a manner
consistent with past practices. Buyer acknowledges that, the preceding sentence
notwithstanding, (i) Reynolds will continue to pursue the sale of its Global Can
Division pursuant to a definitive agreement it has entered into with Ball and
that, if such sale is concluded before the Closing, Reynolds will enter into the
Reynolds Can Sheet Supply Agreement in connection with the sale and (ii)
Reynolds will make a good faith effort to make further manpower reductions at
the Facilities.

     12. DEFINITIVE AGREEMENT. Promptly upon your execution of this letter,
Reynolds will instruct its counsel to prepare a draft of a definitive purchase
agreement (the "Agreement"). The Agreement will contain the terms and conditions
set forth in this letter and representations, warranties, covenants and
indemnities that are customary in transactions of this nature and mutually
acceptable to the parties. Among other things, the Agreement will (i) provide
that Buyer shall not be entitled to indemnification for environmental matters
unless the claim for indemnification is asserted on or before the fifth
anniversary of the Closing Date (except for off-site disposal liabilities, with
respect to which Reynolds' indemnification obligations shall continue
indefinitely) and (ii) contain environmental remediation provisions
substantially in the form set forth on Exhibit B. Each party will negotiate in
good faith to arrive at a mutually acceptable Agreement.

     13. DUE DILIGENCE. Reynolds acknowledges that Buyer will, at Buyer's sole
cost and expense, conduct a customary due diligence review of the Facilities,
the Purchased Assets and the Business. Reynolds will provide Buyer with full
access (during regular business hours and subject to reasonable constraints to
protect health and safety and minimize business disruption) to its assets,
properties, books and

                                       8
<PAGE>

records, and other pertinent information as Buyer may reasonably request to
conduct its due diligence.

     14. CERTAIN CONDITIONS.

          (a) Execution of the Agreement will be subject to the completion by
     Buyer of its due diligence review.

          (b) Closing will be subject to the following conditions: (i)
     negotiation and execution of the Agreement; (ii) filing of the necessary
     premerger notification notices and receipt of termination notices with
     respect to, or expiration of, the waiting period as required by the
     Hart-Scott-Rodino Antitrust Improvements Act of 1976 (the "HSR Act"); (iii)
     receipt of any other governmental, environmental, regulatory or material
     third party consents and approvals required in connection with the purchase
     and sale of the Purchased Assets; (iv) approval of the Transaction by the
     Board of Directors of Reynolds and Buyer; (v) Buyer's right under paragraph
     7(a) to terminate its obligation to consummate the Transaction; and (vi)
     the right of Reynolds or Buyer under paragraph 7(c) to terminate its
     obligation to consummate the Transaction.

     15. EXCLUSIVITY. In consideration of the expenditure of time, effort and
expense to be undertaken by Buyer in connection with the negotiation of the
Agreement, from the date both parties execute this letter through August 31,
1998, as long as Buyer is proceeding diligently and in good faith, Reynolds will
not negotiate with any other entity or person concerning a sale of the Business
(other than sales in the ordinary course of business). Provided that the
Agreement is executed by the parties on or before August 31, 1998, the Agreement
shall provide for a further period of exclusivity through September 30, 1998.

     16. CONFIDENTIALITY. Reynolds has entered into a Confidentiality Agreement
dated as of January 9, 1998 with Avalon Investment and Securities Group (the
"Confidentiality Agreement"). Buyer agrees to be bound by the Confidentiality
Agreement as though it were a party thereto, and the parties acknowledge and
agree that the Confidentiality Agreement will remain in full force and effect
following execution of this letter and hereby ratify and confirm their
respective obligations thereunder.

     17. EXPENSES. Each of Reynolds and Buyer will pay its own costs and
expenses, including the fees of attorneys, accountants, brokers and other
advisors and all filing fees under the HSR Act, incurred at any time in
connection with the Transaction.

     18. PUBLICITY. Except as may be required by law or applicable stock
exchange rules, no public announcement of our negotiations or the signing of
this letter will be made by either party without the prior consent of the other.

                                       9
<PAGE>

     19. BINDING OBLIGATIONS. We intend this letter to be an expression of
intent only, except that the last sentence of paragraph 12, the second sentence
of paragraph 13, paragraphs 15 through 22 and paragraph 24 create binding and
enforceable obligations. No party may reasonably rely on any promises
inconsistent with this paragraph.

     20. TERMINATION. This letter will expire (i) at the end of the day on
August 31, 1998 or (ii) at any earlier time upon our written mutual agreement.
The provisions of paragraphs 16, 17, 18, 21 and 22 will survive any termination
of this letter.

     21. EQUITABLE REMEDIES. The parties acknowledge that upon any breach of any
of the binding obligations under this letter, a non-breaching party will be
entitled to the right of specific performance and temporary and permanent
injunctive relief.

     22. GOVERNING LAW. This letter and the Agreement will be construed and
enforced in accordance with the laws of the Commonwealth of Virginia, other than
its rules with respect to choice of laws.

     23. COUNTERPARTS. This letter may be signed in any number of counterparts,
each of which will be deemed an original, and all such counterparts will
constitute but one instrument.

     24. ASSIGNMENT. Buyer may not assign its rights or obligations under this
letter without the prior written consent of Reynolds.

                            [SIGNATURE PAGE FOLLOWS]

                                       10
<PAGE>

     If you agree with the foregoing, please sign a copy of this letter and
return it to the attention of the undersigned. We look forward to hearing from
you.

                                              Very truly yours,

                                              REYNOLDS METALS COMPANY

                                              By: /s/ John B. Kelzer
                                                  -----------------------------
                                                  John B. Kelzer
                                                  Vice President

AGREED AND ACCEPTED:

AVALON-BORDEN COMPANIES, INC.

By: /s/ Maurice C. Mitchell
    ------------------------------------
    Name:   Maurice C. Mitchell
    Title:  President and Chief Operating Officer
    Date:   June 22, 1998

                                       11
<PAGE>

                                                                       EXHIBIT A

                                 ALLOYS COMPLEX
                      STATEMENT OF ASSETS AND LIABILITIES*
                                 (in thousands)

                                 March 31, 1998

Receivables - Customer                                       $ 20,384
Receivables - Unconsolidated Subsidiaries                      35,125
Receivables - Internal (Can Division)                          41,883
Receivables - Internal (Other)                                  1,083
                                                             --------
     Total Receivables                                       $ 98,475

Total Inventories                                             171,360
Prepaid Expenses                                                    8
                                                             --------
     Total Current Assets                                    $269,843

Less:  Current Liabilities
    Trade Payables                                           $ 20,196
    Internal Payables                                          13,759
    Other Accruals                                              9,070
                                                             --------
Total Current Liabilities                                    $ 43,025

Working Capital                                              $226,818

Book Value PP&E                                              $443,270
Construction in Progress                                        8,466
                                                             --------
     Total PP&E                                              $451,736

Repair parts and spares                                        25,405
Other Non Current Assets                                          337
                                                             --------
Total Facilities                                             $477,478

Total Facilities and Working Capital                         $704,296
                                                             ========

-----------
* This Statement of Assets and Liabilities does not include corporate reserves
or liabilities such as environmental, restructuring, tax, or provision for
postretirement benefits, PP&E includes all of Alloys, ARP and SRC.
<PAGE>

                                                                       EXHIBIT B

                      ENVIRONMENTAL REMEDIATION PROVISIONS

1.       Remediation Activity. Buyer will complete its Phase I and Phase II
         environmental audit before Closing. If, as a result of such Phase I or
         Phase II environmental audits or otherwise, Buyer determines that
         remediation activity is required in order to assure compliance with
         environmental laws, Buyer shall give written notice thereof to Reynolds
         identifying the condition or situation that Buyer reasonably believes
         requires remediation activity by Reynolds and the factual basis for
         such belief. Reynolds will use its best efforts to respond to such
         notice from Buyer as promptly as is reasonably practicable and, to the
         extent feasible, within thirty (30) days will set forth in writing in
         such response Reynolds' proposed schedule for development of a plan for
         conducting and completing such remediation activity as Reynolds
         reasonably believes is required (i) to complete the full
         characterization and determination of the extent of any environmental
         contamination and (ii) to remediate any environmental contamination
         that existed as of the Closing (including any post-Closing migrations)
         to the extent required. Reynolds will at Reynolds' sole cost and
         expense conduct and complete such remediation activity property and as
         promptly as is reasonably practicable and utilizing such consultants
         and contractors as Reynolds shall select with the approval of Buyer
         (such approval not to be unreasonably withheld). Without limiting the
         generality of the foregoing, Reynolds shall determine the plan for and
         shall control and be responsible for the prompt planning, conducting
         and completion of all such remediation activity, utilizing such
         consultants and contractors as Reynolds shall select with the approval
         of Buyer (such approval not to be unreasonably withheld). However,
         Reynolds will, in making all such plans and conducting all such
         remediation activity, allow a reasonable opportunity for Buyer's
         designated environmental personnel, consultants and contractors to
         consider and comment upon all material matters, and any dispute or
         disagreement between the parties regarding any aspect of such
         remediation activity, including any such determination by Reynolds,
         shall be subject to the dispute resolution provisions of Section 3;
         provided, however, that if such dispute involves environmental
         contamination that has been reported to state or federal authorities
         the determination of the applicable remediation activity will be
         determined as provided in subsection (a) below. Reynolds shall provide
         to Buyer copies of any final reports and final laboratory reports
         prepared by or for Reynolds in connection with remediation activity.
         Reynolds shall, and shall cause its personnel, consultants and
         contractors to, safeguard Buyer's assets, operations and personnel and
         shall indemnify Buyer for any loss, damage or injury arising out of any
         remediation activity except to the extent such loss, damage or injury
         resulted from the negligent or willful act of Buyer or its agents or
         contractors. The following subsections of this Section 1 set forth
         certain express agreements of the parties regarding remediation
         activity,
<PAGE>

         and the foregoing general provisions of this Section 1 shall be
         construed and interpreted in a manner consistent with these express
         agreements:

        (a)       With respect to any remediation activity relating to any
                  environmental contamination and related release, Reynolds may
                  seek to conduct such remediation activity under applicable
                  environmental regulatory programs in the State of Alabama (as
                  determined by Reynolds and approved by the appropriate Alabama
                  authority), and, subject to the further provisions of this
                  subsection, any remediation activity so conducted under
                  applicable environmental regulatory programs in the State of
                  Alabama will be considered completed when the applicable
                  Alabama authority issues a written confirmation that no
                  further remediation activity is required in order to comply
                  with applicable environmental laws. If an applicable authority
                  does not require any immediate remediation activity with
                  respect to environmental contamination that exists at or
                  before the Closing, Reynolds shall not be required under the
                  definitive agreement to undertake immediate remediation
                  activity (although it may elect to do so as provided
                  hereunder), but in that event, Reynolds shall retain liability
                  for compliance with environmental laws in effect as of the
                  Closing and for such environmental contamination including
                  post-Closing migrations. However, notwithstanding the
                  foregoing, it is expressly agreed that: (i) no such plan for
                  remediation activity or written confirmation of compliance
                  with environmental laws may be based upon any requirement that
                  Buyer agree to limit its use of the Facilities or encumber its
                  title to the real property with any restrictive covenant that
                  would, in either case, restrict the use of the Facilities for
                  industrial purposes as of Closing as permitted under the
                  existing zoning and land use restrictions applicable thereto;
                  and (ii) in the event that, notwithstanding the receipt of
                  such written confirmation of compliance from the applicable
                  Alabama authority as contemplated above, such Alabama
                  authority or any other authority determines at any time that
                  any further remediation activity is required with respect to
                  the same environmental contamination that was the subject of
                  the remediation activity addressed by such written
                  confirmation of compliance, then Reynolds shall be and remain
                  responsible to conduct and complete such further remediation
                  activity with regard to such environmental contamination as so
                  required.

                  Reynolds shall to the greatest extent feasible conduct and
                  complete all remediation activity so as to avoid any material
                  interference with Buyer's use and enjoyment of the purchased
                  assets or conduct of the business at the Facilities. In the
                  event any such material interference is nevertheless
                  necessary, Reynolds shall conduct such remediation activity in
                  accordance with Buyer's reasonable requirements as to
                  scheduling and other matters in order to minimize such
                  interference.

        (b)       Any other provisions hereof to the contrary notwithstanding,
                  it is expressly agreed that Buyer may take any action on the
                  real property that Buyer

                                       2
<PAGE>
                  reasonably believes is required in order to comply with any
                  applicable environmental laws. To the extent Buyer believes
                  such action is required to be taken by Reynolds hereunder,
                  Buyer shall request that Reynolds take such action. However,
                  if Reynolds does not take such action promptly, Buyer may do
                  so. In the event Reynolds does not take the requested action
                  but it is ultimately determined Reynolds was required to do so
                  hereunder, Reynolds shall indemnify Buyer for all costs
                  reasonably incurred in taking such action.

         (c)      Any other provisions hereof to the contrary notwithstanding,
                  it is expressly agreed that Reynolds may undertake any
                  remediation activity that Reynolds reasonably believes is
                  necessary in order to reduce its liability for environmental
                  contamination it is liable for hereunder. Such remediation
                  activity shall be performed in accordance with the
                  requirements described in this Exhibit B (including Section 1)
                  and may be undertaken whether or not the parties are in any
                  pre-arbitration or arbitration process described in the
                  definitive agreement.

         Reynolds' obligations under this Section 1 shall apply only to
         environmental contamination that existed as of Closing (including
         post-Closing migrations) the existence of which is reasonably
         identified in a notice to Reynolds from Buyer given on or before the
         fifth anniversary of the Closing Date. Any such notice shall also state
         in reasonable detail the basis for Buyer's claim that such
         contamination existed as of Closing.

2.       Communications with Authorities.

         Each of Buyer and Reynolds shall be fully authorized and entitled to
         communicate at any time and in any manner with any authorities
         regarding any environmental matters if such communication is reasonably
         believed by such party to be required to (i) satisfy any legal
         requirement, (ii) obtain any permit or (iii) respond to any inquiry
         from, or provide information requested by, any authority. In addition,
         Reynolds and Buyer shall each keep the other party reasonably informed
         and provide the other party copies of all correspondence and other
         written communications, and a reasonable opportunity to participate in
         all material oral communications and meetings, with authorities
         concerning remediation activity. Except to the extent otherwise
         required or permitted by the foregoing, Buyer agrees that Reynolds'
         right to determine the plan for and to control remediation activity
         includes Reynolds' right to determine the approach to be taken in
         communicating with authorities about such proposed or ongoing
         remediation activity, and Buyer will not communicate with such
         authorities in any manner intended to cause such authority not to
         accept Reynolds' proposed or ongoing plans for such remediation
         activity.

                                       3
<PAGE>
3.       Dispute Resolution.

         (a)      If any dispute or disagreement exists with regard to any
                  matter under or pertinent to any provisions of this Exhibit B
                  after Closing, either of the parties may require the other to
                  submit the reasons for its position, in writing, and then to
                  enter into good faith negotiations to attempt to resolve the
                  disagreement before invoking any other dispute resolution
                  mechanisms set forth in the definitive agreement.

         (b)      Either party shall have the right, at any time, to request
                  review of such matter by an appropriate senior executive
                  officer of each party ("Executive Review"). A party shall
                  exercise its right to request Executive Review by providing a
                  written notice to the other party. The senior executive
                  officers of each party shall meet within thirty (30) days of
                  the date such notice is delivered to the other party, and
                  shall engage in good faith efforts to resolve the disagreement
                  for a period of up to thirty (30) days following such initial
                  meeting.

         (c)      If any dispute or disagreement has not been resolved by
                  Executive Review within such thirty (30) day period, such
                  unresolved dispute or disagreement shall be finally settled
                  under the Commercial Arbitration Rules of the American
                  Arbitration Association and in accordance with the following:

                  (i)      The arbitrators shall have no authority, power or
                           right to alter, change, amend, modify, add to or
                           subtract from any of the provisions of the definitive
                           agreement or any related agreements, or to render an
                           award that by its terms has the effect of altering or
                           modifying any express condition or provision of such
                           agreements.

                  (ii)     Each arbitration hearing shall be conducted in
                           Richmond, Virginia unless the parties otherwise
                           mutually agree. Each party will bear full
                           responsibility for its own expenses attendant to the
                           arbitration proceeding, and each party will share
                           equally in the payment of all other costs of
                           arbitration.

                  (iii)    Each dispute will be submitted to a panel of three
                           (3) arbitrators of whom one (1) will be selected by
                           each party and the third by such other two (2)
                           arbitrators from one or more panels of qualified
                           environmental arbitrators named by the American
                           Arbitration Association, unless the parties otherwise
                           mutually agree. If the third arbitrator has not been
                           selected within thirty (30) days after the first
                           party arbitrator is named, such third arbitrator will
                           be named by the American Arbitration Association.

                  (iv)     Each award will be made in writing and will contain
                           findings of fact and conclusions of law and will be
                           final and binding upon the parties to the

                                       4
<PAGE>

                           extent permitted by law. Judgment may be entered on
                           the award in any court having jurisdiction.

                  (v)      The arbitrators will have no authority to award
                           punitive damages or any other damages not measured by
                           the prevailing party's actual damages.

                  (vi)     During pendency of the resolution of a dispute or
                           disagreement or if a dispute or disagreement has not
                           been resolved, either party may continue to perform
                           remediation activity work, or take action to prevent
                           or ameliorate environmental losses, but shall not be
                           obligated to do so.

         (d)      The foregoing provisions of this Section 3 shall not apply to
                  disputes which require immediate judicial assistance, such as
                  a restraining order.

                                       5
<PAGE>

                             REYNOLDS METALS COMPANY
                6601 BROAD STREET o RICHMOND, VIRGINIA 22230-1701
         MAILING ADDRESS: P.O. BOX 27001 o RICHMOND, VIRGINIA 22230-1701

                               September 30, 1988

SECRETARY AND                                               Tel
ASSISTANT GENERAL COUNSEL                                   Telecopy

Mr. Maurice C. Mitchell
President and Chief Operating Officer
Avalon-Borden Companies. Inc.
777 South Lawrence Street, Suite 100
Montgomery, Alabama 36104

         Re:  Amendment No. 2 to Letter of Intent

Dear Mr. Mitchell:

         Please refer to the letter agreement dated June 19, 1998 between
Reynolds Metals Company ("Reynolds") and Avalon-Borden Companies. Inc,
("Avalon-Borden"), as amended by the letter agreement between Reynolds and
Avalon-Borden dated August 27, 1998 (as amended, the "Letter of Intent"). This
will confirm that Reynolds and Avalon-Borden have agreed to change the date
referred to in the first sentence of paragraph 15 and in paragraph 20 of the
Letter of Intent from "September 30, 1998" to "October 9, 1998". Except as
amended by the preceding sentence, the Letter of Intent shall remain in full
force and effect. If you agree with the foregoing, please sign a copy of this
letter and return it to the attention of the undersigned.

                                                     Very truly yours.

                                                     REYNOLDS METALS COMPANY

                                                     By:  /s/ Donna C. Dabnoy
                                                          -------------------
                                                              Donna C. Dabnoy

AGREED:

AVALON-BORDEN COMPANIES. INC.

By: /s/ Maurice C. Mitchell
    -----------------------------------------
        Maurice C. Mitchell
        President ant Chief Operating Officer

<PAGE>
                             REYNOLDS METALS COMPANY
                 P.O. BOX 27003 o RICHMOND, VIRGINIA 23261-7003

                                 October 8, 1998

Mr. Maurice C. Mitchell
President and Chief Operating Officer
Avalon-Borden Companies, Inc.
777 South Lawrence Street, Suite 100
Montgomery, Alabama 36104

         Re:  Amendment No. 3 to Letter of Intent

Dear Mr. Mitchell:

         Please refer to the letter agreement dated June 19, 1996 between
Reynolds Metals Company ("Reynolds") and Avalon-Borden Companies, Inc.
("Avalon-Borden"), as amended by the letter agreements between Reynolds and
Avalon-Borden dated August 27, 1998 and September 30, 1998 (as amended, the
"Letter of Intent"). This will confirm that Reynolds and Avalon-Borden have
agreed to change the date referred to in the first sentence of paragraph 15 and
in paragraph 20 of the Letter of Intent from "October 9, 1998" to "October 20,
1998." Except as amended by the preceding sentence, the Letter of Intent shall
remain in full force and effect. If you agree with the foregoing, please sign a
copy of this fetter and return it to the attention of the undersigned.

                                             Very truly yours.

                                             REYNOLDS METALS COMPANY

                                             By:  /s/ John B. Keizer
                                                  ----------------------
                                                      John B. Keizer
                                                      Vice President

AGREED:

AVALON-BORDEN COMPANIES. INC.

By: /s/Maurice C. Mitchell
      Maurice C. Mitchell
      President ant Chief Operating Officer

<PAGE>

                             REYNOLDS METALS COMPANY
                          RICHMOND, VIRGINIA 23261-7003

                                November 5, 1998

VICE PRESIDENT AND GENERAL MANAGER
MILL PRODUCTS DIVISION

Mr. Maurice C. Mitchell
President and Chief Operating Officer
Avalon-Borden Companies. Inc.
777 South Lawrence Street, Suite 100
Montgomery, Alabama 36104

         Re:  Amendment No. 2 to October 28, 1998 Letter of Intent

Dear Mr. Mitchell:

         Please refer to the letter agreement dated October 28, 1998 between
Reynolds Metals Company ("Reynolds") and Avalon-Borden Companies, Inc.
("Avalon-Borden"), as amended by the letter agreement between Reynolds and
Avalon-Borden dated November 2, 1998 (as amended, the "Letter of Intent"). This
will confirm that Reynolds and Avalon-Borden have agreed to change the dates
referred to in paragraph 15 and in clauses (iii) and (iv) of paragraph 20 of the
Letter of Intent to "December 10, 1998". Except as amended by the preceding
sentence, the Letter of Intent shall remain in full force and effect. If you
agree with the foregoing, please sign a copy of this letter and return it to the
attention of the undersigned

                                             Very truly yours.

                                             REYNOLDS METALS COMPANY

                                             By:  /s/ John B. Keizer
                                                  ------------------
                                                      John B. Keizer
                                                      Vice President

AGREED:

AVALON-BORDEN COMPANIES. INC.

By: /s/ Maurice C. Mitchell
   ------------------------------------------
   Maurice C. Mitchell
   President ant Chief Operating Officer

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