Document:

Exhibit 10.3

                                 FORM OF WARRANT

         This Warrant and the shares of Common Stock (as defined below) issuable
upon exercise of this Warrant are subject to the terms and conditions of a
Subordinated Loan and Warrant Purchase Agreement, dated as of the date hereof
among ImageMax, Inc. (the "Company") and holders of certain shares or holders
having rights to acquire shares of the outstanding capital stock of the Company.
Copies of such agreement may be obtained at no cost by written request made by
the holder of record of this Warrant to the Company.

         Neither this Warrant nor the shares of Common Stock (as defined below)
issuable upon exercise of this Warrant have been registered under the Securities
Act of 1933, as amended (the "Act"), and neither may be offered, sold or
otherwise transferred, pledged or hypothecated unless and until registered under
the Act or unless the Company has received an opinion of counsel or other
evidence satisfactory to the Company and its counsel that such registration is
not required.

No.: 2000-                                                  Warrant to Subscribe
Date of Issuance:  February 15, 2000                      for [_________] Shares
                                                                 of Common Stock

                           STOCK SUBSCRIPTION WARRANT

                   To Subscribe for and Purchase Common Stock

                                 IMAGEMAX, INC.

         IMAGEMAX, INC., a Pennsylvania corporation (the "Company"), for value
received, hereby certifies and agrees that [_____________] ("Holder") or its
registered assigns, is entitled to subscribe for, at any time and from time to
time during the Exercise Period (as defined in Section 2 below)
[________________] duly authorized, validly issued, fully paid and nonassessable
shares of the Company's common stock, no par value ("Common Stock") subject to
adjustment as set forth in Section 4 and Section 5 hereof (the "Warrant
Shares"), at the Exercise Price (as defined, and subject to adjustment as set
forth in Section 1(b) below), as provided herein. This Warrant was originally
issued in connection with a loan transaction (the "Loan") among the Company and
several investors (the "Investors") pursuant to which the Investors have loaned
the Company an aggregate of Six Million Dollars ($6,000,000) pursuant to a
Subordinated Loan and Warrant Purchase Agreement as of the date hereof, among
the Company and the Investors (the Subordinated Loan and Warrant Purchase
Agreement, as the same may hereafter be amended and/or restated the "Loan
Agreement"),

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and several convertible subordinated promissory notes dated the date hereof, in
the aggregate original principal amount of $6,000,000, delivered by the Company
and its Subsidiaries to the Investors in connection therewith (the convertible
subordinated promissory notes, as the same may hereafter be amended and/or
restated and any notes issued in substitution or exchange for any of the
foregoing, the "Notes").

                  This Warrant is subject to the following provisions, terms and
conditions.

         1. Exercise of Warrant.

                  (a) Optional Exercise; Issuance of Certificates; Payment for
Shares; Additional Warrants. The rights represented by this Warrant may be
exercised by the Holder hereof, in whole or in part (but not as to a fractional
share of Common Stock), by the surrender of this Warrant (properly endorsed if
required) (or, in the event that such Warrant has been lost, stolen or
destroyed, the Holder shall execute an agreement reasonably satisfactory to the
Company to indemnify the Company from any loss incurred by it resulting from the
fact that such Warrant has been lost, stolen or destroyed), together with a
completed Exercise Agreement in the form attached hereto as Exhibit A (the
"Exercise Agreement") at the office of the Company at 1100 Hector Street, Suite
396, Conshohoken, PA 19428 (or such other office or agency of the Company as it
may designate by notice in writing to the Holder hereof at the address of such
Holder appearing on the books of the Company at any time within the Exercise
Period) and upon (i) payment to the Company of the purchase price for such
shares in cash, check or wire transfer of immediately available funds or (ii) by
delivery to the Company of a completed Exercise Agreement indicating the
Holder's intention to effect a Cashless Exercise (as defined in, and in
accordance with the provisions of, Section 1(c) below), for the number of
Warrant Shares indicated in the Exercise Agreement. The Company agrees that the
Warrant Shares so purchased shall be and are deemed to be issued to the Holder
hereof as the record owner of such shares as of the close of business on the
date on which this Warrant shall have been surrendered and payment made for such
shares as aforesaid. Certificates for the shares of stock so purchased shall be
delivered to the Holder hereof at the address specified by the Holder within a
reasonable time, not exceeding ten days, after the rights represented by this
Warrant shall have been so exercised, and, unless this Warrant has expired, a
new Warrant representing the number of shares, if any, with respect to which
this Warrant shall not then have been exercised shall also be delivered to the
Holder hereof within such time.

                  (b) Exercise Price; Adjustments to Exercise Price.

                           (1) The exercise price of the Warrant Shares pursuant
to this Warrant shall be $3.50 per share, subject to adjustments as set forth in
Section 1(b)(2) and Section 5 below (the "Exercise Price").

                                       -2-

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                           (2) Notwithstanding the foregoing, the Exercise Price
shall be subject to adjustment as follows:

                                    (A) if on the fourth anniversary of the date
of issuance set forth on the first page of this Warrant (the "Date of
Issuance"), the average Market Price (as defined below) of the Company's Common
Stock has been at or below $4.00 (subject to adjustment under circumstances set
forth in Sections 5(b) -(d) hereof) per share for a period of twenty (20)
consecutive trading days, then the Exercise Price shall be reduced to the lesser
of (i) $2.20 (subject to adjustment under the circumstances set forth in
Sections 5(b) - (d) hereof) per share or (ii) eighty percent (80%) of the
average Market Price for such twenty (20) trading day period; and

                                    (B) if on the fourth (4th) anniversary of
the Date of Issuance, the Company's Common Stock has no Market Price (as defined
below), then the Exercise Price shall be reduced to the lesser of (i) $2.20 per
share or (ii) eighty percent (80%) of the Appraised Value (as defined below) on
such fourth (4th) anniversary (the "Appraised Value Measurement Date");
provided, however that:

                                    (C) if, at any time during the period after
the fourth (4th) anniversary of the Date of Issuance the Company receives a bona
fide offer, which the Company intends to accept, to engage in an Exit Event (as
defined in the Loan Agreement) which reflects a value per share of Common Stock
of the Company of $4.80 or more (subject to adjustment under the circumstances
set forth in Sections 5(b) - (d) hereof), upon its receipt of written notice
from the Company with respect thereto, the Holder may not exercise any portion
of this Warrant except concurrently with and as part of such Exit Event and, if
the Exit Event closes prior to that date which is 180 days after the fourth
(4th) anniversary of the Date of Issuance, the reductions in the exercise price
provided for in Section 1(b)(2)(A) and (B) shall be reversed and the Exercise
Price shall again be $3.50 per share (subject to adjustment under the
circumstances set forth in Sections 5(b) - (d) hereof). If no Exit Event closes
prior to that date which is 180 days after the fourth (4th) anniversary of the
Date of Issuance, this Section 1(b)(2)(C) shall be of no further force or
effect.

                  "Market Price" shall mean, per share of Common Stock, as of
the date of determination, the closing price per share of Common Stock on such
date published in The Wall Street Journal or, if no such closing price on such
date is published in The Wall Street Journal, then the average of the reported
closing bid and asked prices on such date, as officially reported on the
principal national securities exchange (including for this purpose, without
limitation, The Nasdaq Stock Market, Inc.) on which the Common Stock is then
listed or admitted to trading. If the Common Stock is not then listed or
admitted to trading on any such national securities exchange, then the Common
Stock shall be deemed to have no "Market Price".

                  "Appraised Value" shall mean the value of a share of the
Company's Common Stock on the Appraised Value Measurement Date as determined, at
the Company's expense, by an investment banker satisfactory to the Company and
the Holder.

                                       -3-

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                  (c) Cashless Exercise. Notwithstanding anything to the
contrary contained in this Warrant, this Warrant may be exercised by
presentation and surrender of this Warrant to the Company at its principal
executive offices with a completed Exercise Agreement, indicating the Holder's
intention to effect a cashless exercise, including a calculation (to the extent
then calculable) of the number of shares of Common Stock to be issued upon such
exercise in accordance with the terms hereof (a "Cashless Exercise", and the
date of such presentation and surrender being herein referred to as the
"Cashless Exercise Date"). In the event of a Cashless Exercise, in lieu of
paying the Exercise Price in cash, check or immediately available funds, the
Holder shall surrender this Warrant for that number of shares of Common Stock
determined by multiplying the number Warrant Shares by a fraction, the numerator
of which shall be the difference, if any, of the average Market Price for the
twenty (20) trading day period preceding the date of the Exercise Agreement (or,
if there is no such Market Price, the Appraised Value on the date of the
Exercise Agreement), less the Exercise Price in effect as of such date, and the
denominator of which shall be such average Market Price for such twenty (20)
trading day period (or, if there is no such Market Price, the Appraised Value on
the date of the Exercise Agreement).

         2. Exercise Period; Governmental Approvals.

                  (a) Except as provided in Section 4(c), this Warrant shall be
exercisable at any time and from time to time during the period commencing upon
after the later to occur of (i) the first anniversary of the Date of Issuance,
and (ii) repayment in full of the Note originally issued to the original Holder
of this Warrant or conversion of such Note into Common Stock, and continuing
until the fifth anniversary of the Date of Issuance (such period shall herein be
referred to as the "Exercise Period").

                  (b) The Company covenants that if any registrations, filings
or approvals are required pursuant to United States or state law or applicable
governing rules ("Government Approvals") before any Warrant Shares may be issued
upon exercise, the Company will in good faith and as expeditiously as possible
endeavor to cause such Government Approvals to be obtained; provided, however,
that in no event shall such Warrant Shares be issued, and the Company is hereby
authorized to suspend the exercise of all Warrants, for the period during which
such Government Approvals are required but not in effect. If the Exercise Period
of the Warrants expires during any time that the exercise of the Warrants has
been suspended, the right to exercise the Warrants shall not expire until thirty
(30) days after the Company has notified the Holder thereof (by first class
mail, postage prepaid) that the required Government Approvals are in effect, and
that the aforementioned suspension is no longer in effect.

         3. No Fractional Shares. No fractional shares of Common Stock or scrip
representing fractional shares shall be issued upon exercise of this Warrant. If
any fractional share of Common

                                       -4-

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Stock would be issuable upon the exercise of this Warrant, then the Company
shall make an adjustment therefor in cash at the Exercise Price.

         4. Adjustments to Number of Warrant Shares.

                  (a) If at any time prior to the exercise of this Warrant, (i)
the average Market Price for any ninety (90) trading day period (the "Ninety Day
Average") equals or exceeds $8.00 (subject to adjustment under circumstances set
forth in Sections 5(b) - (d) hereof) per share, the number of Warrant Shares
shall be decreased to 1,600,000; (ii) the Ninety Day Average equals or exceeds
$9.00 (subject to adjustment under circumstances set forth in Sections 5(b) -(d)
hereof) per share, the number Warrant Shares shall decrease to 1,472,727; or
(iii) the Ninety Day Average equals or exceeds $10.00 (subject to adjustment
under circumstances set forth in Sections 5(b) - (d) hereof) per share, the
number of Warrant Shares shall decrease to 1,384,615; provided, however, in the
event the number of Warrant Shares is decreased in accordance with this Section
4(a) and subsequently thereto the Exercise Price is adjusted in accordance with
the terms of Section 1(b)(2) hereof, the number of Warrant Shares shall
immediately be increased as follows: (i) in the event this Warrant has not been
exercised, the number of Warrant Shares shall increase to the Original Number Of
Warrant Shares (as defined below); and (ii) in the event there has been a
partial exercise of this Warrant, the number of Warrant Shares shall be
increased on a pro rata basis, determined by multiplying the number of remaining
unexercised Warrant Shares by a fraction the numerator of which is the Original
Number Of Warrant Shares and the denominator of which is the applicable
"Adjusted Number Of Warrant Shares" (as defined below).

                           For these purposes, the original number of Warrant
Shares set forth on the first page of the Warrant is referred to as the
"Original Number Of Warrant Shares" and each of the adjusted number of Warrant
Shares derived under Section 4(a)(i)-(iii) is referred to herein as the
"Adjusted Number Of Warrant Shares".

                  (b) Exercise Protocol. In the event that the Market Price of
the Company's Common Stock reaches the $8.00, $9.00 or $10.00 thresholds
described in Section 4(a), respectively, the Company shall in each case give the
Holder notice of such event. In the event that the Ninety Day Average reaches
the $8.00, $9.00 or $10.00 thresholds, respectively, described in Section 4(a),
the Company shall give the Holder prompt written notice and the Holder shall
have the right for a period of ten (10) days from the date of such notice to
exercise this Warrant for the number of shares of Common Stock as in effect
prior to any adjustment that would take place pursuant to Section 4(a) as a
result of such increase in the Market Price. If the Holder should fail to
exercise this Warrant prior to the end of such ten (10) day period, the number
of Warrant Shares shall immediately be reduced in accordance with Section 4(a)
hereof.

                  (c) In the event of an Exit Event(as defined in the Loan
Agreement), the Company shall give the Holder written notice of its receipt of a
bona fide offer to the Company, which the

                                       -5-

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Company intends to accept, to engage in an Exit Event within ten (10) days of
receipt of such offer. In the event of an Exit Event (as defined below) in which
the Exit Event Price is greater than $8.00, $9.00 or $10.00, respectively,
(subject in each case to adjustment under circumstances set forth in Sections
5(b) - (d)) per share, then (i) the number of Warrant Shares shall be
immediately reduced in accordance with Section 4(a) above as if the Exit Event
Price were the corresponding Ninety Day Average, and (ii) from the time of the
receipt of such notice until the effective date of the Exit Event, the Holder
may not exercise any portion this Warrant except concurrently with and as part
of such Exit Event.

                  (d) In the event the consideration received in an Exit Event
consists of securities of the surviving Person of such Liquidating Event that do
not constitute "restricted securities," as such term is defined in Rule
144(a)(3) promulgated under the Act, consideration shall be deemed to be the
Market Price for the twenty (20) trading day period ending three (3) days prior
to the consummation of the Liquidating Event.

         5. Adjustments. The Exercise Price and the number of shares purchasable
hereunder are subject to adjustment from time to time as follows:

                  (a) Anti-Dilution.

                           (i) Subject to Section 5(a)(v) below, in the event
the Company shall hereafter issue additional shares of Common Stock, options or
other securities convertible into or exchangeable for Common Stock at a price or
conversion or exercise price (as the case may be) which is less than the
Exercise Price (the "Additional Shares"), the Exercise Price shall be
automatically lowered to a price equal to the price or conversion price or
exercise price (as the case may be) for such Additional Shares.

                           (ii) If the Company at any time and in any manner
issues or sells any stock, warrants, rights or options pursuant to which the
recipient may subscribe for or purchase Common Stock ("Options") the "price or
the conversion or exercise price (as the case may be)" in accordance with
Section 5(a)(i) shall be determined by dividing (i) the total amount, if any,
received or receivable by the Company as consideration for the issuance or
granting of all such Options, plus the minimum aggregate amount of additional
consideration, if any, payable to the Company upon the exercise of all such
Options, plus, in the case of Convertible Securities issuable upon the exercise
of such Options, the minimum aggregate amount of additional consideration
payable upon the exercise, conversion or exchange thereof at the time such
Convertible Securities first become exercisable, convertible or exchangeable, by
(ii) the maximum total number of shares of Common Stock issuable upon the
exercise of all such Options (assuming full conversion of Convertible
Securities, if applicable). No further adjustment to the Exercise Price will be
made upon the actual issuance of such Common Stock upon the exercise of such
Options or upon the exercise, conversion or exchange of Convertible Securities
issuable upon exercise of such Options.

                                       -6-

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                           (iii) (A) If the Company at any time and in any
manner issues or sells any securities which are exercisable for, convertible
into or exchangeable for, Common Stock ("Convertible Securities"), whether or
not immediately convertible (other than where such Convertible Securities are
issuable upon the exercise of Options), the "price or the conversion or exercise
price (as the case may be)" in accordance with Section 5(a)(i) shall be
determined by dividing (i) the total amount, if any, received or receivable by
the Company as consideration for the issuance or sale of all such Convertible
Securities, plus the minimum aggregate amount of additional consideration, if
any, payable to the Company upon the exercise, conversion or exchange thereof at
the time such Convertible Securities first become exercisable, convertible or
exchangeable, by (ii) the maximum total number of shares of Common Stock
issuable upon the exercise, conversion or exchange of all such Convertible
Securities. No further adjustment to the Exercise Price will be made upon the
actual issuance of such Common Stock upon exercise, conversion or exchange of
such Convertible Securities.

                                    (B) If the Company in any manner issues or
sells any Convertible Securities with a variable conversion or exercise price or
exchange ratio, then the price per share for which Common Stock is issuable upon
such exercise, conversion or exchange for purposes of the calculation
contemplated by Section 5(a)(iii)(A) shall be deemed to be the lowest price per
share which would be applicable (assuming all holding period and other
conditions to any discounts contained in such Convertible Security have been
satisfied).

                           (iv) If the total number of shares of Common Stock
issuable upon exercise of Options or upon exercise, conversion or exchange of
Convertible Securities, in each case for which an adjustment was made pursuant
to Section 5(a), is not, in fact issued and the rights to exercise such Options
or to exercise, convert or exchange such Convertible Securities shall have
expired or terminated, the Exercise Price then in effect shall be readjusted to
the Exercise Price which would have been in effect at the time of such
expiration or termination had such Option or Convertible Securities, to the
extent outstanding immediately prior to such expiration or termination (other
than in respect of the actual number of shares of Common Stock issued upon
exercise, conversion or exchange thereof), never been issued.

                           (v) No adjustment to the Exercise Price will be made
under this Section 5(a) upon (i) the exercise of any of the Options for 465,000
shares of Common Stock outstanding prior to the date this Warrant was originally
issued; (ii) the issuance, grant or exercise of any stock or Options, which are
contemporaneously herewith being, or may hereafter be issued, granted or
exercised under the plan in existence on the date this Warrant was originally
issued relating to employees, directors or independent contractors of the
Company; provided that the maximum number of shares of Common Stock so issued or
issuable upon the exercise of such Options shall not exceed one million one
hundred thirty-five thousand (1,135,000) shares (135,000

                                       -7-

<PAGE>

shares under the existing plan plus an additional one million shares); or (iii)
the exercise of any of the Warrants or conversion of any of the Notes.

                           (vi) Upon each adjustment of the Exercise Price
pursuant to the provisions of this Section 5(a), the number of shares of Common
Stock issuable upon exercise of this Warrant shall be adjusted by multiplying a
number equal to the Exercise Price in effect immediately prior to such
adjustment by the number of shares of Common Stock issuable upon exercise of
this Warrant immediately prior to such adjustment and dividing the product so
obtained by the adjusted Exercise Price.

                  (b) Stock Dividend, Split or Subdivision of Shares. If the
number of shares of Common Stock outstanding at anytime after the date hereof is
increased or deemed increased by a stock dividend payable in shares of Common
Stock or other securities convertible into or exchangeable for shares of Common
Stock ("Equivalents") or by a subdivision or split-up of shares of Common Stock
or Equivalents (other than a change in par value, from par value to no par value
or from no par value to par value), then, following the effective date fixed for
the determination of holders of Common Stock or Equivalents entitled to receive
such stock dividend, subdivision or split-up, the Exercise Price shall be
appropriately decreased and the number of Warrant Shares shall be increased in
proportion to such increase in outstanding shares (on a fully diluted basis if
the dividend is payable in Equivalents).

                  (c) Combination of Shares. If, at any time after the date
hereof, the number of shares of Common Stock outstanding is decreased by a
combination of the outstanding shares of Common Stock (other than a change in
par value, from par value to no par value or from no par value to par value),
then, following the effective date for such combination, the Exercise Price
shall be appropriately increased and the number of Warrant Shares shall be
decreased in proportion to such decrease in outstanding shares.

                  (d) Reorganizations, Consolidations, etc. In the event, at any
time after the date hereof, of any capital reorganization, or any
reclassification of the capital stock of the Company (other than a change in par
value or from par value to no par value or from no par value to par value or as
a result of a stock dividend or subdivision, split-up or combination of shares),
or the consolidation or merger of the Company with or into another person (other
than a consolidation or merger in which the Company is the continuing
corporation and which does not result in any change in the powers, designations,
preferences and rights, or the qualifications, limitations or restrictions, if
any, of the capital stock of the Company as amended from time to time) or of the
sale or other disposition of all or substantially all the properties and assets
of the Company in its entirety to any other person (any such transaction, an
"Extraordinary Transaction"), then this Warrant shall be exercisable for the
kind and number of shares of stock or other securities or property of the
Company, or of the corporation resulting from or surviving such Extraordinary
Transaction, that a Holder of the number of shares of Common Stock deliverable
(immediately prior to the effectiveness

                                       -8-

<PAGE>

of the Extraordinary Transaction) upon exercise of this Warrant would have been
entitled to receive upon such Extraordinary Transaction. The provisions of this
Section 5(d) shall similarly apply to successive Extraordinary Transactions.

                  (e) Calculations. All calculations under this Section 5 shall
be made to the nearest cent ($.01) or to the nearest share, as the case may be.

                  (f) Certificate as to Adjustments. Upon the occurrence of each
adjustment or readjustment pursuant to this Section 5, the Company at its own
expense shall promptly compute such adjustment or readjustment in accordance
with the terms hereof and furnish to each the Holder hereof a certificate
setting forth such adjustment or readjustment and showing in detail the facts
upon which such adjustment or readjustment is based. The Company shall, upon the
written request, at any time, of any such Holder, furnish or cause to be
furnished to such Holder a like certificate setting forth: (i) such adjustments
and readjustments; (ii) the Exercise Price at the time in effect; and (iii) the
number of shares and the amount, if any, of other property that at the time
would be received upon the exercise of the Warrant.

         6. Shares to be Fully Paid; Reservation of Shares. The Company
covenants and agrees that all of the Warrant Shares, upon issuance, be duly
authorized, validly issued, fully paid and nonassessable and free from all
taxes, liens and charges with respect to the issue thereof. The Company further
covenants and agrees that during the period within which the rights represented
by this Warrant may be exercised, the Company will at all times have authorized,
and reserved for the purpose of issue or transfer upon exercise of the
subscription rights evidenced by this Warrant, a sufficient number of shares of
its Common Stock to provide for the exercise of the rights represented by this
Warrant.

         7. Notices. In case at any time:

                  (a) the Company shall declare any cash dividend upon its
Common Stock;

                  (b) the Company shall declare any dividend upon its Common
Stock payable in stock or make any special dividend or other distribution (other
than regular cash dividends) to the holders of Common Stock;

                  (c) the Company shall offer for subscription pro rata to the
holders of its Common Stock any additional shares of stock of any class or other
rights;

                  (d) there shall be any capital reorganization, or
reclassification of the capital stock of the Company, or consolidation or merger
of the Company with, or sale of all or substantially all of its assets to,
another corporation; or

                                       -9-

<PAGE>

                  (e) there shall be a voluntary or involuntary dissolution,
liquidation or winding up of the Company;

then, in any one or more of said cases, the Company shall give, by first class
mail, postage prepaid, addressed to the Holder of this Warrant at the address of
such Holder as shown on the books of the Company, (i) at least 10 days prior
written notice of the date on which the books of the Company shall close or a
record shall be taken for such dividend, distribution or subscription rights or
for determining rights to vote in respect of any such reorganization,
reclassification, consolidation, merger, sale, dissolution, liquidation or
winding up, and (ii) in the case of any such reorganization, reclassification,
consolidation, merger, sale, dissolution, liquidation or winding up, at least 10
days prior written notice of the date when the same shall take place. Such
notice in accordance with the foregoing clause (i) shall also specify, in the
case of any such dividend, distribution or subscription rights, the date on
which the holders of Common Stock shall be entitled thereto, and such notice in
accordance with the foregoing clause (ii) shall also specify the date on which
the holders of Common Stock shall be entitled to exchange their Common Stock for
securities or other property deliverable upon such reorganization,
reclassification, consolidation, merger, sale, dissolution, liquidation or
winding up, as the case may be.

         8. Restriction on Transfer.

                  (a) This Warrant and the rights granted to the Holder are
transferable, in whole or in part, upon surrender of this Warrant, together with
a properly executed assignment in the form attached hereto as Exhibit B, at the
office or agency of the Company referred to Section 1 above, pro vided, however,
that any transfer or assignment shall be subject to the conditions set forth in
Section 8(b) hereof and Section 11.2 of the Loan Agreement. Until due
presentment for registration of transfer on the books of the Company, the
Company may treat the registered holder hereof as the owner and holder hereof
for all purposes, and the Company shall not be affected by any notice to the
contrary.

                  (b) Exercise or Transfer Without Registration. If, at the time
of the surrender of this Warrant in connection with any exercise, transfer, or
exchange of this Warrant, this Warrant (or, in the case of any exercise, the
Warrant Shares issuable hereunder) shall not be registered under the Act and
under applicable state securities or blue sky laws, the Company may require, as
a condition of allowing such exercise, transfer, or exchange, that the holder or
transferee of this Warrant, as the case may be, furnish to the Company a written
opinion of counsel, in form, substance and scope customary to opinions typically
delivered in transactions of this nature, to the effect that such exercise,
transfer, or exchange may be made without registration under the Act and under
applicable state securities or blue sky laws.

         9. No Rights or Liabilities as a Shareholder. This Warrant shall not
entitle the Holder to any voting rights or other rights as a shareholder of the
Company. No provision of this Warrant,

                                      -10-

<PAGE>

in the absence of affirmative action by the Holder to purchase Warrant Shares,
and no mere enumeration herein of the rights or privileges of the holder hereof,
shall give rise to any liability of such holder for the Exercise Price or as a
shareholder of the Company, whether such liability is asserted by the Company or
by creditors of the Company.

         10. Issue Tax. The issuance of certificates for Warrant Shares shall be
made without charge to the holders of the Warrant for any issuance tax in
respect thereof, provided that the Company shall not be required to pay any tax
which may be payable in respect of any transfer involved in the issuance and
delivery of any certificate in a name other than that of the Holder of the
Warrant exercised.

         11. Closing of Books. The Company will at no time close its transfer
books against the transfer of any Warrant or of any Warrant Shares in any manner
which interferes with the timely exercise of this Warrant.

         12. Descriptive Headings and Governing Law. The descriptive headings of
the several paragraphs of this Warrant are inserted for convenience only and do
not constitute a part of this Warrant. This Warrant is being delivered and is
intended to be performed in the Commonwealth of Pennsylvania and shall be
construed and enforced in accordance with, and the rights of the parties shall
be governed by, the law of such Commonwealth.

         13. Waiver of Trial by Jury. THE COMPANY AND HOLDER HEREBY WAIVE TRIAL
BY JURY IN ANY ACTION, PROCEEDING, CLAIMS OR COUNTERCLAIMS, WHETHER IN CONTRACT
OR TORT, AT LAW OR IN EQUITY, ARISING OUT OF OR IN ANY WAY RELATING TO THIS
WARRANT.

                            [SIGNATURE PAGE FOLLOWS]

                                      -11-

<PAGE>

                  IN WITNESS WHEREOF, IMAGEMAX, INC. has caused this Warrant to
be signed by its duly authorized officers and dated the day and year first above
written.

                                            IMAGEMAX INC.

                                            By:_________________________________

                                      -12-AMENDMENT TO FORBEARANCE AGREEMENT

     This Amendment to Forbearance Agreement (this "Amendment"), dated this 15th
day of February, 2000, is by and among ImageMax, Inc. ("Borrower"), a
Pennsylvania corporation, the undersigned subsidiaries of Borrower
(collectively, along with Borrower, the "Company Affiliates"), First Union
National Bank ("First Union"), successor by merger to CoreStates Bank, N.A., a
national bank, for itself and as agent pursuant to the Credit Agreement
described below (in such capacity, the "Agent"), and Commerce Bank, N.A.
("Commerce"), a national bank and one of the "Banks" under the Credit Agreement
described below.

                                   BACKGROUND

     A. Pursuant to the terms and subject to the conditions set forth in that
certain Credit Agreement, dated as of March 30, 1998, among Borrower, the
undersigned subsidiaries of Borrower, Agent, for itself and in such capacity,
Commerce Bank, N.A. and any other banks becoming a party thereto, as amended
pursuant to that certain Amendment No. 1 to Credit Agreement dated as of June 9,
1998 among Company Affiliates, First Union and Agent, and that certain Amendment
No. 2 to Credit Agreement dated as of November 16, 1998 among Company
Affiliates, First Union, Agent and Commerce (as amended, the "Credit
Agreement"), Banks established a revolving credit facility for Company
Affiliates pursuant to which Banks severally agreed, subject to and in reliance
on all of the provisions of the Credit Agreement and the other Loan Documents
referred to therein, to provide a revolving credit facility up to Thirty Million
($30,000,000.00) Dollars (which revolving credit facility has been decreased
pursuant to, inter alia, the Second Amendment (as decreased and amended, the
"Revolving Credit"), pursuant to which Banks made various loans, advances and
extensions of credit (including extensions of credit in the form of the issuance
for the account of Borrower and/or other Company Affiliates of various letters
of credit), which indebtedness is further evidenced by (i) a certain Revolving
Credit Note dated as of March 30, 1998 in the principal sum of Twenty-Five
Million ($25,000,000.00) Dollars (in respect of the Acquisition Facility)
executed and delivered by Borrower to Agent for the rateable benefit of each of
the Banks and (ii) a certain Revolving Credit Note dated as of March 30, 1998 in
the principal sum of Five Million ($5,000,000.00) Dollars (in respect of the
Working Capital Facility) executed and delivered by Borrower to Agent for the
rateable benefit of each of the Banks (collectively, the "Revolving Credit
Note").

     B. As collateral security for the Obligations (as defined in the Credit
Agreement), pursuant to the terms and subject to the conditions set forth in (i)
that certain Security and Pledge Agreement, dated as of March 30, 1998, executed
and delivered by Company Affiliates to Agent, (ii) that certain Trademark
Collateral Agreement, dated as of March 30, 1998, executed and delivered by
Borrower to Agent and (iii) that certain Copyright Collateral Agreement, dated
as of March 30, 1998, executed and delivered by Borrower to Agent (collectively,
along with each of the instruments, agreements and documents referred to in such
documents and the Chesterton Mortgage described below, the "Loan Documents"),
Company Affiliates granted to Agent for the rateable benefit of Banks, and Agent
holds liens on and security interests in, to and under all of Company
Affiliates' respective existing and future goods, equipment, furniture,
inventory, machinery, money, accounts, contracts, contract rights, general
intangibles, fixtures, instruments,

<PAGE>

documents and chattel paper, whether now owned or hereafter acquired or arising,
together with all replacements and substitutions therefor and additions thereto
and cash and noncash proceeds thereof (the "Collateral").

     C. To induce Banks to enter into the Credit Agreement, establish the
Revolving Credit and make various loans, advances and extensions of credit to or
for the benefit of Company Affiliates, pursuant to the terms and subject to the
conditions of that certain Surety Agreement dated as of March 30, 1998, by each
Company Affiliate (other than Borrower) to Agent (the "Surety Agreement"), each
such Company Affiliate guaranteed, as a surety, the Obligations.

     D. Prior to March 29, 1999, Borrower and the other Company Affiliates
defaulted in their financing arrangements with Agent and Banks. A list of the
defaults under the Credit Agreement and the other Loan Documents (collectively,
the "Existing Defaults") is attached to this Amendment as Exhibit "A" and hereby
made a part hereof. At the request of Company Affiliates, Agent and Banks
executed and exchanged with Company Affiliates that certain Forbearance
Agreement dated March 29, 1999 (the "First Forbearance Agreement"), pursuant to
which Agent and Banks agreed to forbear from exercising their rights and
remedies under the Loan Documents and applicable law. The First Forbearance
Agreement terminated, with the Obligations remaining outstanding, and Company
Affiliates again requested that Agent and Banks forbear from exercising their
rights and remedies under the Loan Documents and applicable law, pending the
refinancing by Company Affiliates of the Obligations and, solely as an
accommodation to Company Affiliates, Agent and Banks executed and exchanged with
Company Affiliates that certain Forbearance Agreement dated September 30, 1999
(the "Forbearance Agreement"), pursuant to which Agent and Banks agreed to
continue to forbear from exercising their rights and remedies under the Loan
Documents and applicable law in accordance with the terms of the Forbearance
Agreement.

     E. Borrower and the other Company Affiliates have requested that Agent and
Banks (i) consent to Company Affiliates issuing one or more convertible
subordinated notes in the aggregate principal sum of Six Million ($6,000,000.00)
Dollars to TDH III, L.P., Dime Capital Partners and Robert E. Drury
(collectively, the "TDH Investors") (such subordinated indebtedness being
hereinafter referred to as the "TDH Subordinated Indebtedness"), (ii) extend the
Forbearance Period through June 30, 2000 and (iii) modify certain covenants set
forth in the Forbearance Agreement. Agent and Banks agree to accommodate Company
Affiliates' requests under the terms and subject to the conditions set forth in
this Amendment.

     NOW, THEREFORE, with the foregoing Background deemed incorporated
hereinafter by this reference and hereby made a part hereof, the parties hereto,
intending to be legally bound, hereby further covenant and agree as follows:

                                        2
<PAGE>

SECTION 1. DEFINITIONS.

     1.1 Accounting Terms. All accounting terms not otherwise defined in this
Amendment or the Forbearance Agreement shall have the meanings ascribed to such
terms in accordance with GAAP.

     1.2 Capitalized Terms. All capitalized terms not otherwise defined in shall
have the meanings ascribed to such terms in the Forbearance Agreement.

SECTION 2. AMENDMENT TO FORBEARANCE AGREEMENT.

     Under the terms and subject to the conditions set forth in this Amendment,
the Forbearance Agreement is hereby amended as follows:

     2.1 Forbearance Period; Terminating Events. The Forbearance Period is
hereby extended through the earlier of (i) June 30, 2000 or (ii) the date on
which any Terminating Event occurs, and the "Forbearance Termination Date" is
hereby amended to be such earlier date.

     2.2 Amortization of Obligations. Interest on the outstanding principal
balance of the Obligations shall continue to be payable monthly, in arrears, on
the first day of each month. The principal of the Obligations shall be payable
in consecutive monthly installments as follows:

      Payment Date                  Amount of Payment
      ------------                  -----------------
      February 15, 2000             $50,000
      March 1, 2000                 $125,000
      April 1, 2000                 $150,000
      May 1, 2000                   $250,000
      June 1, 2000                  $300,000
      June 30, 2000                 All principal, interest, fees and
                                    reimbursable expenses in connection
                                    with the Obligations shall be paid
                                    and satisfied in full

In addition to the foregoing amortization, Banks shall receive a payment on
account of the principal of the Obligations in the amount of Five Million
($5,000,000.00) Dollars on the earlier of the date of funding of the TDH
Subordinated Indebtedness or February 15, 2000.

     2.3 Accommodations with Respect to Covenants.

          (A) Subsection 4.1(B) of the Forbearance Agreement is hereby deleted.
     Company Affiliates shall not longer be required to submit a monthly,
     written status report of activities undertaken by Blair; provided, however,
     that Agent and Banks hereby reserve the right, at their option, to require
     such data and information (financial or otherwise) as Agent and Banks

                                        3
<PAGE>

     may reasonably request including, without limitation, information as to the
     activities of Blair and others in connection with the sale of stock and/or
     assets of Company Affiliates.

          (B) Subsection 4.1(D)(2) is hereby deleted in its entirety and
     replaced with the following:

          Company Affiliates minimum stockholders equity, together with
          the TDH Subordinated Indebtedness, shall at all times be not
          less than Forty-Two Million ($42,000,000.00) Dollars, and
          shall increase by the amount of net income of Company
          Affiliates and investments in Company Affiliates, but shall
          not be reduced by losses incurred by Company Affiliates.

          (C) Subsection 4.1(D)(3) is hereby deleted in its entirety and
     replaced with the following:

          Capital Expenditures of Company Affiliates shall not exceed in
          the aggregate the sum of Two Hundred Fifty Thousand
          ($250,000.00) Dollars for the calendar quarter ending March
          31, 2000 and shall not exceed in the aggregate the sum of Five
          Hundred Thousand ($500,000.00) Dollars for the calendar
          quarter ending June 30, 2000, in each case determined on a
          non-cumulative basis.

          (D) Subsection 4.1(D)(6) is hereby deleted in its entirety and
     replaced with the following:

          Without the prior written consent of Banks, which consent may
          be withheld by Banks in their sole and absolute discretion,
          Company Affiliates shall not incur any additional indebtedness
          including, without limitation, "off-balance sheet"
          indebtedness in excess of the aggregate sum of Ten Thousand
          ($10,000.00) Dollars, except for (i) the TDH Subordinated
          Indebtedness, which TDH Subordinated Indebtedness shall be in
          the amount of Six Million ($6,000,000.00) Dollars, shall
          accrue interest at not more than nine (9%) percent per annum,
          with interest payable semi-annually, in arrears, commencing on
          or after July 1, 2000 and, so long as any part of the
          Obligations remain outstanding, no principal amortization
          (whether by voluntary prepayment, acceleration or otherwise).
          The TDH Subordinated Indebtedness shall otherwise be in form
          and substance satisfactory to Agent, Banks and their counsel,
          and (ii) a contingent indebtedness in the amount of up to Two
          Hundred Fifty Thousand ($250,000.00) Dollars in favor of TDH
          Investors in the event of the breakup of the TDH Subordinated
          Indebtedness and otherwise under the terms and subject to the
          conditions set forth in a certain Memorandum dated

                                        4
<PAGE>

          November 9, 1999 from Jim Buck and J.B. Doherty of TDH
          Investors to Andy Bacas and Mark Glassman of Company
          Affiliates and acceptable to Agent, Banks and their counsel.

     (E) Subsection 4.1(E) is hereby deleted in its entirety; provided, however,
that nothing herein contained shall be deemed to impair the right of Agent and
Banks after the occurrence of any Terminating Event to require the concentration
or disposition of remittances (or other proceeds) on account of accounts
receivable and other proceeds from the sale or other disposition of Collateral
in such manner as Agent and Banks may determine in their sole and absolute
discretion.

SECTION 3.        ADDITIONAL COVENANTS.

     3.1 In addition to all covenants set forth in the Loan Documents and the
Forbearance Agreement, Company Affiliates covenant and agree with Agent and
Banks that, so long as any of the Obligations remain unsatisfied and
outstanding, they will comply with the following covenants:

          (A) On or before February 15, 2000, from the proceeds of the TDH
     Subordinated Indebtedness, Banks shall receive on account of the principal
     of the Obligations the sum of Five Million ($5,000,000.00) Dollars.

          (B) On or before February 15, 2000, Company Affiliates shall obtain
     and furnish to Agent and Banks a commitment for the refinancing of the
     Obligations in an amount not less than Fifteen Million ($15,000,000.00)
     Dollars (the "Refinancing Commitment"). The Refinancing Commitment shall be
     subject only to such terms, covenants, conditions and contingencies as
     Agent and Banks may accept in their sole and absolute discretion; provided,
     however, that the Refinancing Commitment may be subject to the financial
     institution issuing such commitment obtaining a participant to purchase and
     fund a participation interest in not less than Six Million ($6,000,000.00)
     Dollars of such Fifteen Million ($15,000,000.00) Dollar credit facility.

          (C) On or before May 15, 2000, Company Affiliates shall obtain and
     furnish to Bank a revised Refinancing Commitment for a Fifteen Million
     ($15,000,000.00) Dollar credit facility pursuant to which Company
     Affiliates will be able to refinance the Obligations on or before June 30,
     1999. The revised Refinancing Commitment shall be in form and substance
     satisfactory to Agent, Banks and their counsel in their sole and absolute
     discretion. Without limiting the generality of the foregoing, the
     Refinancing Commitment may not be subject to the condition that the issuer
     of such commitment obtain a participant in such financing arrangements.

SECTION 4.        WARRANTIES AND REPRESENTATIONS.

     4.1 Reaffirmation of Warranties and Representations. Except as qualified in
Schedule 4.1 attached hereto and hereby made a part hereof, Company Affiliates
hereby severally and collectively reaffirm and restate each of the warranties
and representations set forth in the Credit

                                        5
<PAGE>

Agreement and the other Loan Documents as if each such warranty and
representation were set forth at length herein.

     4.2 Additional Warranties and Representations. To induce Agent and Banks to
enter into, in addition to the representations and warranties set forth in the
Loan Documents and the other instruments, agreements and documents otherwise
referred to herein, Company Affiliates severally and collectively represent and
warrant to Agent and Banks that:

          (A) Each Company Affiliate has the corporate power, authority and
     capacity to enter into and perform its liabilities and obligations under
     and all related instruments, agreements and documents, and to incur the
     indebtedness herein and therein provided for, and has taken all proper and
     necessary corporate action to authorize the execution, delivery and
     performance of and related instruments, agreements and documents;

          (B) This Amendment is valid, binding and enforceable against Company
     Affiliates in accordance with its terms; and

          (C) No consent, approval or authorization of, or filing, registration
     or qualification with, any person or entity (including, without limitation,
     any shareholder or creditor of any Company Affiliates) is required to be
     obtained by any Company Affiliate in connection with the execution and
     delivery of or any related instrument, agreement or document, or
     undertaking or performance of any obligation hereunder or thereunder.

SECTION 5. CONDITIONS PRECEDENT.

     This Amendment is subject to the following conditions precedent (all
instruments, agreements and documents to be in form and substance satisfactory
to Banks and their counsel):

     5.1 Documents Required for Closing. Borrower shall have duly executed
and/or delivered (or caused to be duly executed and/or delivered) to Banks the
following:

          (A) A secretary's certificate (as of the date of this Amendment)
     attaching a copy of resolutions of each Company Affiliate's Board of
     Directors authorizing the execution, delivery and performance of this
     Amendment and each other document to be executed and/or delivered pursuant
     hereto and any other instrument, agreement or document referred to herein
     and confirming that the articles or certificate of incorporation and
     by-laws of each Company Affiliate have not changed since last delivered to
     Agent;

          (B) A certificate (dated the date of) of each Company Affiliate's
     corporate secretary as to the incumbency and specimen signatures of the
     officers of Borrower executing and each other document to be executed
     and/or delivered pursuant hereto or thereto;

          (C) TDH Investors and Agent on behalf of Banks shall execute and
     exchange a subordination agreement in respect of the TDH Subordinated
     Indebtedness in form and substance satisfactory to Agent, Banks and their
     counsel;

                                        6
<PAGE>

          (D) Copies of all instruments, agreements and documents evidencing the
     TDH Subordinated Indebtedness;

          (E) In consideration of the agreement of Banks to continue to forbear
     pursuant to this Amendment, Company Affiliates shall pay to Agent for the
     ratable benefit of Banks a forbearance extension fee in the amount of Fifty
     Thousand ($50,000.00) Dollars (which fee shall be deemed part of the
     Obligations secured by the Collateral) upon execution and exchange of this
     Amendment; and

          (F) Such other instruments, agreements and documents as may be
     required by Banks and/or their counsel.

     5.2 No Terminating Event. No Terminating Event shall have occurred and be
continuing.

SECTION 6. CONFIRMATION OF EXISTING INDEBTEDNESS AND RATIFICATION OF LOAN
           DOCUMENTS.

     6.1 Confirmation of Obligations. Company Affiliates hereby unconditionally
acknowledge and confirm that: the unpaid principal indebtedness of Company
Affiliates to Banks evidenced by the Loan Documents is as set forth on Exhibit
"B"; interest on such principal obligations has been paid through the date(s)
set forth on Exhibit B; and the foregoing indebtedness, together with
continually accruing interest and related costs, fees and expenses is, as of the
date hereof, owing without claim, counterclaim, right of recoupment, defense or
set-off of any kind or of any nature whatsoever.

     6.2 Ratification of Financing Agreements. Company Affiliates hereby
unconditionally ratify and confirm and reaffirm in all respect and without
condition, all of the terms, covenants and conditions set forth in the Loan
Documents and agree that they remain unconditionally liable to Banks in
accordance with the respective terms, covenants and conditions of such
instruments, agreements and documents, and that all liens and security interests
and pledges encumbering the Collateral created pursuant to and/or referred to in
the Loan Documents continue unimpaired and in full force and effect, and secure
and shall continue to secure all of the Obligations, as the same may be modified
by the terms of . As part of the Collateral, each Obligor hereby reaffirms its
prior grant and grants to Agent a lien on and a security interest in and to all
of such Obligor's existing and future investment property.

SECTION 7. MISCELLANEOUS.

     7.1 Integrated Agreement. This Amendment and all of the instruments,
agreements and documents executed and/or delivered in conjunction with shall be
effective upon the date of execution hereof and thereof by all parties hereto
and thereto, and shall be deemed incorporated into and made a part of the Loan
Documents. All such instruments, agreements and documents, and, shall be
construed as integrated and complementary of each other, and as augmenting and

                                        7
<PAGE>

not restricting Agent's and Banks' rights, remedies, benefits and security. If,
after applying the foregoing, an inconsistency still exists, the provisions of
shall constitute an amendment thereto and shall govern and control.

     7.2 Release. In consideration of the accommodations being made available by
Banks to or for the benefit of Company Affiliates under, including, without
limitation, the continued forbearance on the part of Banks, Company Affiliates,
for themselves and their respective heirs, personal representatives, agents,
employees, successors and assigns, do hereby remise, release and forever
discharge Agent, Banks and their respective agents, employees, representatives,
officers, successors and assigns of and from any and all claims, counterclaims,
demands, actions and causes of action of any nature whatsoever, whether at law
or in equity, including, without limitation, any of the foregoing arising out of
or relating to the transactions described in, which against Agent, Banks or
their respective agents, employees, representatives, officers, successors or
assigns, or any of them, any Obligor has or hereafter can or may have for or by
reason of any cause, matter or thing whatsoever, from the beginning of the world
to the date of; provided, however, that this provision shall not release claims
resulting from acts of gross negligence or wilful misconduct of Banks.

     7.3 No Coercion. Company Affiliates hereby represent and warrant that they
are fully aware of the terms set forth in and have voluntarily, and without
coercion or duress of any kind, entered into intending to be legally bound by
its terms.

     7.4 Banks Reliance. Company Affiliates expressly understand and further
agree that Agent and Banks are relying on all terms, covenants, conditions,
warranties and representations set forth in including, without limitation,
Agent's and Banks' right to terminate the Forbearance Period at any time upon
the occurrence of a Terminating Event, as a material inducement to Agent and
Banks to enter into.

     7.5 Debit Authorization. Each Company Affiliate hereby irrevocably
authorizes Agent and Banks to charge any deposit account of any Company
Affiliate maintained at any Bank for all or any part of any amount due under the
Loan Documents and including, without limitation, principal, interest, late
charges, fees and expenses reimbursable to Agent and Banks (including reasonable
legal fees) and the forbearance extension fee.

     7.6 Expenses of Agent and Banks. Company Affiliates will pay all expenses,
including the reasonable fees and expenses of legal counsel for Agent and Banks,
incurred in connection with the preparation, negotiation, administration,
amendment, modification or enforcement of, the Credit Agreement, the other Loan
Documents, the collection or attempted collection of the Obligations and Agent's
and Banks' rights hereunder and under the instruments, agreements and documents
referred to herein, and in any proceedings (including, without limitation,
bankruptcy or other insolvency proceedings) brought or threatened to enforce
payment of any of the Obligations.

     7.7 Applicable Law. This Amendment shall be governed by the laws of the
Commonwealth of Pennsylvania, without giving effect to principles of conflicts
of laws.

                                        8
<PAGE>

     7.8 Jury Trial Waiver. COMPANY AFFILIATES HEREBY IRREVOCABLY WAIVE TRIAL BY
JURY AND ANY RIGHT THERETO, AND CONSENT TO THE JURISDICTION OF THE COURTS OF
PHILADELPHIA COUNTY, PENNSYLVANIA, AND AGREE NOT TO RAISE ANY OBJECTION TO SUCH
JURISDICTION, OR TO THE LAYING OF THE VENUE IN SUCH COMMONWEALTH, AND FURTHER
AGREE THAT SERVICE OF PROCESS MAY BE DULY EFFECTED UPON THEM BY SERVICE IN
ACCORDANCE WITH THE PROVISIONS OF THE UNIFORM INTERSTATE AND INTERNATIONAL
PROCEDURE ACT.

     7.9 Counterparts. This Amendment may be executed in any number of
counterparts, each of which shall be deemed to be an original, but all of which
together shall constitute but one and the same writing.

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

                                                IMAGEMAX, INC.
                                                IMAGEMAX OF INDIANA, INC.
                                                IMAGEMAX OF SOUTH CAROLINA, INC.
                                                IMAGEMAX OF TENNESSEE, INC.
                                                IMAGEMAX OF ARIZONA, INC.
                                                IMAGEMAX OF OHIO, INC.
                                                IMAGEMAX OF VIRGINIA, INC.
                                                AMMCORP ACQUISITION CORP.
Attest:                                         IMAGEMAX OF DELAWARE, INC.

By:                                  By: /s/ Andrew R. Bacas
    ------------------------------       ---------------------------------
    Name:                                Name: Andrew R. Bacas
    Title:                               Title: Acting CEO and Secretary
                (Corporate Seal)         Address: 1100 Hector Street
                                                  Suite 396
                                                  Conshohocken, PA 19428
                                                  Attn: President

                                         FIRST UNION NATIONAL BANK, successor
                                         by merger to CORESTATES BANK, N.A. for
                                         itself and as Agent

                                         By: /s/ unintelligible
                                             ---------------------------------
                                             Name:
                                             Title:
                                             Address: 123 S. Broad Street
                                                      Philadelphia, PA 19109

                                        9
<PAGE>

                           [Signature Lines Continued]

                                        With a copy to: Klehr, Harrison, Harvey,
                                                        Branzburg & Ellers LLP
                                                        260 S. Broad Street
                                                        Philadelphia, PA 19102

                                                        Attn: Donald M. Harrison
                                                              Richard S. Roisman

                                        COMMERCE BANK, N.A.

                                        By: /s/ Joseph Tommaro, Jr.
                                            ---------------------------------
                                            Name: Joseph Tommaro, Jr.
                                            Title: Assistant Vice President
                                            Address: 1701 Route 70 East
                                                     Cherry Hill, NJ 08034

                                       10
<PAGE>

                                    EXHIBIT A

                                Existing Defaults

                                       11
<PAGE>

                                    EXHIBIT B

Acquisition loan outstanding as of 2/15/00:

         Bank                                                     Amount
-------------------------                                     --------------
First Union National Bank                                     $ 9,780,000.00
Commerce Bank, NA                                             $ 4,890,000.00
                                                              --------------
         Total Outstanding:                                   $14,670,000.00

Working Capital loan outstanding as of 2/15/00:

         Bank                                                     Amount
-------------------------                                     --------------
First Union National Bank                                     $ 2,477,333.32
Commerce Bank, NA                                             $ 1,238,666.68
                                                              --------------
         Total Outstanding:                                   $ 3,716,000.00

                                       12

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